Full text of Commercial and Financial Chronicle : June 27, 1957, Vol. 185, No. 5650, Section 1

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ESTABLISHED

In 2 Sections

£g&<fl»Yl
MICHIGAN

11957

S JUMMIiTUTIW
UNARY '

IUC. V. 8. Pat. Office

Volume

185

Number 5650

New York 7, N. Y.,

I1 EDITORIAL

::v

JPeSee

" V-^:

Federal Debt and Budget in
If; ;;s; Past Four a«*d a Hall Years

proval

upon

Administration with which: he himself has had

estimable

much to do. Any appraisal of the merits of the
arguments put forward by either or both of the

gess

seemed much inclined to

room

—

and

one;

June, 1948,1 spoke to The Graduate
subject of the management of
huge national debt. At that time,

our

I was able to

'of

Committee

mittee

chairman.

published

vphlets and

made

Public Debt

which P. was

ously, although none seemed to be specific as to
what items of proposed outlays should be deleted
from present budget plans,*; But, as might have
been expected, the critics of monetary policy in
general, and of the Federal Reserve policy in
particular, are planning to have a field day.
There can be little doubt that the opposition party
has high hopes of making "dear money" a serv¬
iceable campaign issue next year, and, so they
doubtless hope, in the Presidential election year,
1960. Between public extravagance, which the

page

by the-

series

ting

which

This

- ~

- -

debt

and

only

Continued

trend

nated.

forecasts

man-

page

This, I submit,

that

Dealers'

of today's issue

Association of

our

and

pleasant prophecies.

Can

Continued

not agree

address

by Prof. Wess before the Institute
Manufacturers, Cincinnati, Ohio, June 4, 1957.
♦An

B. Wess

jnarold

recent years have been dominated bv inflation?

page

Appliance

is devoted to the

Canada at Jasper Park

Lodge, Jasper, Alberta, June 11-14, 1957.

DEALERS

have not

We have preferred optimistic

done.

Investment

enterprise

free

the facts as ;they exist and
appropriate action.- .
can
only. be 'stopped or J
reversed if the underlying causes are
discovered soon enough" and elimi¬

♦An address by Mr. Burgess before The Graduate School of Bank¬
ing of the American Bankers Association, Rutgers University, New
Brunswick, N. J., June 14, 1957.

Convention of the

true

face

problems in its

present

our

•

„

great pity '

to take

the

bleed to death because of failure

W. R. Burgees
particularly appropriate,
because,
in
recent
weeks,
many
foolish and unduly alarming statements have been made

about

even

ing the rest of the world from, en¬
slavement, has been: allowing itselfi

plight

same

find

system today, which saved the world 1
from tyranny in World War I, from
nazism and fascism in World War II,
and the only power capable of sav-..

en¬

accomplished in put¬
the principles on
Committee agreed nine

years ago.

now

pam-

effect

our;

France

that

have

into

and

perhaps
condition.
It is

worse

Now, after spending 4% years in
'the Treasury Department With some'
responsibility for the ^ management
of the public debt, I want to discuss
what

country of the last 25 years

Com¬

volume

summary

Britain

themselves—or

Policy, of

This

our

not reversed, we will end up in the

Great

D. A. OF CANADA CONVENTION ISSUE—Section 2

41st Annual

If the major trends in
are

report the conclusions

two-year ;study

titled "Our National Debt.";

Nine years ago, in

try to defend it vigor¬

Continued

Mr. Bur¬

calls for spending restraint and tax cut postponement.

School of Banking on the

":5 The magnitude of Federal expenditures after
four or five years of a regime originally dedicated
to reduction in government-outlays came in for
considerable (and deserved) criticism in the give
and take of the Committee

Public Debt

flexible interest rates and business confidence.

gentlemen must, of course, await avail¬
ability in detail of what they had to say. We have
no doubt that each of them
supported his con¬
tentions with an able analysis of the facts.

H. Maey & Co.

Federal, state andi
local budget-cutters; !union feather-bedding and restrict
tive practices; agitators for cheap government money; t
and public's lethargy to bask economk problems andi
failure of courageous leadership to awaken the public.*
Warns that unless past 25-year trend "is reversed we will
end up in the same plight as Great Britain and France or
perhaps even worse."i In pointing out that the so-called
"robber barons" of the past would be shocked at the
kind of invisible robbery we tolerate today, the busi¬
ness expert calls for labor statesmanship, Congressional
action, and courageous vmen who would "rather be
right than president"

Policy, n*ade in 1948, on avoiding predicted dangers
arising from a huge Federal debt. Concludes real prog¬
ress has been made in
past Q/% years in handling the
debt in view of: smaller budget and shift to surplus as
compared to inherited Truman's budget and deficit in
1953; better debt distribution; and/ restoration of

history will place its seal of apthe financial work of the Eisenhower

Professor Wess admonishes insincere

Former banker com¬
the Eisenhower Administration's accomplishments

with the recommendations of Committee

is confident that

Former Vice-President R

Federal debt and its management.

J evidently not under any delusion of perfection,

The American University, Washington, D. C.

;

have problems of prosperity
but denies pessimistic charges made currently about the
pares

of Business Administration and Marketing

School of Business Administration

Treasury official admits

Under Secretary of the Treasury

length got under way before the Senate Finance
! Committee. It
quickly produced an argument between two titans, Senator Byrd and
Secretary of
the Treasury George Humphrey. The Senator is
1 much -afraid that we are, financially speaking,
| treading on thin ice, while the Secretary, though

Copy

By HAROLD B. WESS*

)' Professor

By HON. W. RANDOLPH BURGESS*

| into the state of the finances of the nation has at

What Is Past Is Piologne
■

The oft-deferred and well publicized inquiry

Price 40 Cents

Thursday, June 27, 1957

State, Municipal

Stale and

3funieipal

STATE

AND

MUNICIPAL

Securities
telephone;

and

;

Mgjjh

U. S. Government,

Public

Bonds and Notes

COPIES OF OUR

BONDS

ILVnover 2-3700

CHEMICAL

FOREIGN

CORN EXCHANGE

Available

"MARKET I EVIEW"

LETTER

ARE NOW AVAILABLE

BOND DEPARTMENT

ON REQUEST

Request

Housing Agency;

the

BANK
BOND

THE FIRST NATIONAL CITY BANK

Burnham

DEPARTMENT

and

MEMBERS NEW YORK ANO

30 BROAD ST.,

N.Y.

15 BROAD STREET, NEW

Company

OF NEW YORK

Members

AMERICAN STOCK EXCHANOES

YORK 5, N. Y.

•

Dl 4-1400

TSCETVe* NY «-2#03

CABLIt COIURNHAM

120
Bond Dept.

Net
To

INVESTMENT:

T.L.Watson &.Co.
ESTABLISHED 1832

Members K

Active

Teletype: NY 1-708

Banks

and

CANADIAN

Orders

Executed

Exchange

CANADIAN DEPARTMENT

STREET

NEW YORK 4. N. Y.

coast

BANK

coast

for California
:

Municipals

Instalment Debentures,
Due

July

1967

Price $98.06 to yield

5%;.
*

DIRECT

WIRES TO MONTREAL AND

Goodbody

Doxwiox Securities

TORONTO

Co.

Grporaxioh '•!.

MEMBERS NEW YORK STOCK EXCHANGE

COMPANY

from

Teletype NY 1-2270

25 BROAD

<£>tyulAu>€4t

Chase Manhattan

Non-Callable

All

Canadian Exchanges At Regular Rates

goothw&t

FIRST

Exchange

METROPOLITAN TORONTO
4

Exchange

Stock

$500,000

New York Stock

offices

Brokers

American

of the

York

BROADWAY, NEW YORK 5

THE MUNICIPALITY OF

Commission
...

New

& C-

Maintained

Markets

Dealers,

SECURITIES

Harris, Upham

BRIDGEPORT

•-

PERTH AMBOY '

115 BROADWAY
NEW YORK

"
•-

1 NORTH LA SALLE ST.
CHICAGO

Exchange Place, New

Teletype NY 1-702-3

York 5, N. Y

WHitehall 4-tlBl

MUNICIPAL BOND

DEPARTMENT

Hunk of America
'

NATIONALASSOCIATION
C

300 MONTGOMERY

STREET

SAN FRANCISCO,

CALIF.™

Chronicle

The Commercial and Financial

.;.

Thursday, June 27, 1957

(2970)

For Banks,

The

Brokers, Dealers only

Security I Like Best
week, a different group of experts
and advisory field from all sections of the country

Pry "HANSEATIC"

A continuous forum in which, each

Because Our...

participate and give their reason, for favoring a particular security.,

(The articles contained in this forum are not intended to be, nor
they to be regarded, as an offer to sell the securities discussed.)

wire

private

1. Nationwide

in the investment

Large, experienced trading

3. Broad contacts and

Complete OTC service

faster

with

prospects and
tion

New Yorit Hanseatic

Arm

Corporation
Stock

28,

lier

Exchange

ear¬

this

costs

break-in

high of 38.

quarter

sustained

well

were

lower

Mobile, Ala.

Investment

around

Department

starting

General Transistor

General
has had

Corporation

Transistor

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN

fords

history due to the
widespread acceptance of the

new

semi

Private Wires

Principal Cities

5%%.
of 29% in mar¬

ket
38

August Hubt

RIGHTS & SCRIP

the

a possible recovery in
earnings moderately above
$2.56 per share shown last

ity, and operating efficiency.
The pattern

year.

The

Since 1917

decline

ings
residential

new

New York

Stock

•
,

Exchange

Last year's sales of $247 million

BROADWAY, NEW YORK 5

were

million

margins
15.1%

1955,

declined

from

13.8%.

but

The

;> present

con¬

siderable

riods.

was

that earnings dipped to $2.56 per
share from the all-time peak of

111

Transistor is: a quality manufacturer,
principally ; of
computer
transistors, whose common stock
at a price of about 23 (listed on

^ '

diversified, serving both
and industrial markets.

Life Insurance Co. of Va.

consumer

Sales

composed roughly of 60%

Commonwealth Natural Gas

Firm

chiefly

of glass containers,
though plastic containers and
and

TWXLY77

closures

also

are

mand for such

alcaps

made.

De-

ment
of

Advance Industries
r

British

'•

•

All

versified
'

•

ucts

•'M.n.'

•

Seaporcel Metals, Inc.
United Artists

Corp.

&reet\e«Jiowvpott\\\

tion

customers.

friction

and

a
an

2-4859

bilities
net

ma¬

u~*Td show moderate gains over
1956.
.

for

company's

the

sales,

well-known

business,

bulk

the

includes

face floor coverings, interior wall

Exchange

coverings, acoustical materials
which

Moki Oil

Pecos

tures

Exploration

tant

American Tidelands

Oil

Brown-Allen Chemicals
•

•

Salt

Lake

1 Exchange PI.,

Stock

Jersey City, N. J.

Teletype JCY 119
Telephone Dlgby 9-3424

direct private wire to Salt Lake

City

Such

pend mostly
sumers

impor-

t^an

new

expendj+u^s
.

6e;

the level of con+

incomes

and should

show

considerably greater stability than

new

for

This

offset

Exchange)

tion.

CAPPER & CO.

modernization,
existing struc-

new

provides

during

home

home
a

construc¬

favorable

periods

construction,

lower

such

the present.

been

aggressive

research

the

leaving

has

building

materials field, developing a con-

been

$1.50 'per

28. the
favorable

at
a

out

interruption

the

for

past

ARMSTRONG CORK, basicallv,
strongly situated and is ably
aggressively managed. Its

ac-

tive research continually broadens
the Product line and the longer
term trend of building and modernization provides a good base
£or the company's operations.
1-

relatively

XT-

The shares listed
York Stock

Exchange,

well

the New

are

deflated

already
market-

wise, having declined 29% from
high of 38, due to what

upward trend.

about

are

tubes,

vacuum

than

TRANS-CANADA

PIPE LINES
Limited
*•>'

WiSENER

AND

COMPANY

LIMITEO

/
v v!
Toronto, Ganada.
>

King St West

TratfingOept.

EMpire

^20A

i.&
37 Wall Street,

New York 5, N. Yi

tubes.

than

smaR^**

mimh

have

filament

•^ Dealers

and radiate negligible heat. Hence,
their voltage and power
a

'fraction- of

those

needs are

This effects radical savings

size

the

ment.

and

require
erating

have

long
approximately

life,

Investment Securities

Canadian and Domestic

;

weight of equin-

Transistors

erating

'V-

vacuum

tubes.

vacuum

op-

ten

Thev

tubes.

"warm-up" period, op¬
instant they are en¬

the

ergized.

Probably the greatest potential
market

transistors

for

industrial

and

military

the

business.

Examples of applications are in
telephone switching,- data
han¬
dling systems, control equipment

avi

times

yield 5V2%.

guided missiles, ignition sys¬
tems, servo-amplifiers and the rap¬
idly expanding computer market.
All of these offer growth prospects

which
There

hardly

strument made
may
one

form

six
MX

million
II'IlllUIl

dnped

utilize

not

attractive.
electronic in¬
conceived which

extremely

are

the transistor in
In 1955, only

another.

transistors
I? rtllMSIUlO

were
VVCIC

nroui im¬

1? 5 mi]linr, in 195R and an

estimated

million

be manufactured.

dustry

estimates

At about 28,

will

19"7

By 19^5. the in-

production

Over-the-Counter

Quotation Services
tor 43

rears

General

Transistor

Corporation

has been narticinating in this ex¬

pansion.

Its growth in the almost
it has been in opera¬

only

estimated

1957

tion

National Quotation Bnreai
Incorporated

three years

selling

earnings of about $2.70
and

•*

abr>ut 450 milhpn units.
appear

be temporary influences in a long
range

'/ '

years*

circuits

arc

times that of

Dividends have been paid with¬

the

ARMSTRONG'S

have

spent last year) and
$1.50 dividend yields
51^%

insulating

ARMSTRONG

outlays

•

homes

and
to

building.
„

Baruch-Kenilind

repair work

million,

$21.1

lia¬

current

quarterly, plus 30c extra. Th:s

and

Maintenance,

($10.5 million cash)
total

Transistors require less power and*
in certain applications require less

about only half of the $20 million

and

assets

policy should continue
(capital
expenditures this year should be

items.

Philippine Oil

N. Y.

noise,

device employing germanium,
silicon or other semi-conductor
material, to perform the functions
hitherto; performed by 'the con,ventional vacuum receiving tube.'

complex

posi¬

working capital of $46.3 mil¬
'.v
:

Dividends

30c

materials, hard boards, and related

(Members

deaden

Current

times

financial

share during the past two years

the

Armstrong hard-sur¬

Orders Executed on Salt Lake Stock

0\*

lion.

wide range of other items.
over-all basis, this division

accounting

sound.

3.2

were

Prod¬

facing

The building materials

$67.4 million

terials,
gasketing,
insulations,
firebrick,
textile
roll
covers,
cushioning materials, adhesives,

1930

37 Wall St., N. Y. Tel. HAnover

list

include

ESTABLISHED

maintenance

specialties manufac¬
by Armstrong go to a di¬

tured

Industries

Microwave Associates
"

enables

Securities

the

Tb*»v

ARMSTRONG'S

strong industry position.

building

Finances and Dividends

Industrial

'•

work

residential

products is steady

growing. The company's ag¬
gressive promotional and develop¬

Trading Markets

new

j The transistor was developed
less than nine years ago by 'the
Bell Telephone Laboratories.' It is

operations have been lower, underlying trends continue favorable in such building fields-as
schools, commercial construction,
and remodeling of residences.

and

Trading Markets Maintained

1956 over the first

second half of

while

The packaging division consists

Lynchburg, Va.
'

are

building

materials; 20% industrial specialties, and 20% packaging products,

{TRADER and COMPANY, Inc
LD 39

{ ,;

prospect,

recently, incoming orders have been averaging higher than a year ago.
(c)

and

ules,

Industries

Furniture

Bassett

-V

Broadway.N.Y.6 COrtiandt 7-5680

Furniture

American

investment;

half and are expected to triple in.
as
indicated by the management,- the current year over 1956.
The
$2.83 in 1955.
:
are :(a)
distributors' inventories stock appears to be a reasonable.
ARMSTRONG is one of the are how well balanced; (b) any speculation in a small,,but rapidly <
three largest building material rise in demand should be quickly
growing company in one of-thev
companies.
Operations are well reflected
in
production
sched- newest fields of electronics,

Trading Interest In

; v

Brokers & Investment Bankers

'f-

General

;;

this

for

reasons

Co., Ltd.

Tokyo, Japan

;

■

portunity ' for
Edmund J.'Blake, Jr.

1956.

The

Y a march! Securities
\

Inc. ;

op-'

share in the first quarter the American Stock Exchange) is!
may be the lowest, from present selling at 23 times minimum antic-'
indications, with a higher trendV ipated ■ 1957 earnings of $1 perof earnings during subsequent pe-h share. Sales almost doubled in the \

profit
high

result

t ol

p p ears

55c per

off only moderately from the

$249

TEL. REctor 2-7815

: a

York,

Affiliate

units

tronic

New

and
elec-

other

;

•

year's 72c per share earnings in the first quarter were the
highest for the year — trending
moderately downward in the sec->
ond-and third quarters. This year's

stock, along with some pressure on
profit margins due to competitive

Stock Exchange

American

120

better with those of

Yairaichi

growth

this

Last

less favorable market action of the

factors.

been ;•

a v e

and its

...

write

Securities Company!

considerable'

of quarterly earn¬
may well contrast

1957

for

for the

building has been reflected in the

IfcpONNELL&O).

earnings, these facilities should
have a progressively favorable ef¬
fect on capacity of output, qual-;

con¬

trasts with
1957

expen-.

Its

compute r s;

initially the new plants penalize

price from
to

Call

the

applications in

high for ARMSTRONG. While

ord

transistor.

rising ^cost,

capital

Last year's

For current Information

device

known

ditures of $20 million were a rec¬

decline

The

Specialists in

the

counteract

trend.

STOCKS

■

conduc-

tor

management's
stringent
cost- control
policies,
aggressive steps are being taken

tively favor¬
able yield
of

FRANCISCO

J A PANESE

unusual growth in its al¬

In line with the

rela¬

branch offices

our

■

Corporation

most three year

WOrth 4-2300

Direct wires to

Grace National Bank of New York

operations.

price the $1.50
dividend af¬

York 5

120 Broadway, New

NY 1-1557

last

from

Member

Associate
American

first

year's $61 million level. Net
earnings, however, were 55c pershare, against 72c. This reflected
(a) higher general operating costs,
and (b) special costs relative to
the expansion program
and

around

Established 1920

the

Sales

American Stock Exchange

New Orleans, La. - Birmingham, Ala,

EDMUND J. BLAKE, JR.

1957

strong
e

Members New York Stock Exchange %

HAnover 2-0700

diversified

Cork have de01in

Steiner,Rouse&Co.
19 Rector St., New York 6, M. Y.

c?st 9°?£ro£
mar"
Sins between 12 Jo and 15%.

strong posifields, the

■■■■■■■

A„<nict

August

—

Members

its

Co,

Cork

riod, the management's excellent

basically well situated issue
encouraging longer range

for you.

...

During the past 10-year pe-

level.

Bought—Sold—Quoted

(Page 2)

City.

Huber, Manager Stock Dept.,
Spencer Trask & Co., New York
City. (Page 2)

million to around the $250 million

Stock Exchange

Armstrong Cork

better executions,

mean

York"

New

Members

York

New

Airostrons:

vanced rather steadily from $144

Ne\v York City

Soencer Tra«k & Co

Louisiana Securities

Blake, Jr., Investment Depart¬
ment, Grace National Bank,

have "ad-.:

1P47

SfllCS Since

UCtS.

I)en3rtni<¥iit

Stork

lVT'm'irrpr

department

sinep

SniAc

Corp.

Xransistor

Genera|

prod-

tinuous flow of commercial

AUGUST HUBER

Alabama &

and

Their Selections

ure

system

Week's

This

Forum Participants

per

has

been

outstanding,

Established 1913

espe46 Front Street

cially with considerable competiContinued

on page

CHICAGO

New York
SAN

4fN.Y.

FRANCISCO

Volume

185

Number

5650

The Commercial and Financial Chronicle

(2971)
r,

X" *'

•

f»'

■1

Sowing the Seeds oi Inflation
By DR. EDWIN G. NOURSE*

I ND E X

Former Vice-President
Brookings Institution

,•:

Former

;

•

chief

•

Presidential

economic

adviser

asserts

economist I

constantly

'it

to what inflation

really is, how
about, and what we can
should do

flation
rise

vto curb it.

flation

In-

merely

syn-

?
"

potential built

rise, prolonged

national

may

Edwin

spelled

capital letters
getting more and

This I

think-

lw'rln

debt,

tFarm Products Price Factors—Roger W.
.—Charles R.

making

horo

got

-r-

seeds

than

seeds
we

yet

and

still

year

and

the whirl¬
business depression? To
reap

these

need to look

back

ones-

^
more

For ten

Bit of History

long

years

level where

business would again
be prosperous and employment
op-

portunities abundant.

Then, suddenly, World War n broke down
our traditional economic

inhibitions

and invoked the dual
stimulus of fear and patriotism to

and

raise

prices,

five short years, we
multiplied
.the natipnal debt from $26 billion
to $278
billion, built up an enor¬
mous

backlog of deferred wants
and liquid" savings, and facilitated

great release of human fecun¬
dity. Prices and wages were in
those years pretty well held down

by controls.
*An

the

But

address

Committee

seeds

Dr." Nourse
to

Curb

recomr

curb

it:

of
at

intwo*

Decline

.Market,

the

have specialized in

Financing

"Tax
to

reduction

inflationary

also

prevent

which

Bank

Members Salt Lake City Stock
Exch.
'
Spokane Stock Exchange

1
6

Exchange PI., Jersey City

DIgby 4-4970

carried

financial position

out

budget

surplus

demption

and

See.

and

Business

in.

Insurance
Man's

From

Mutual

re-

Funds

Reporter's

inflationary
still
exist J."

which

was

duce

"5.6
used

bank

debt.

This

tionary

holdings
was

factor

are

a
.

providing

Continued

year

Taxes

Utility

Report

The Market

.__

Offerings

Twice

Park

DANA

Weekly

Nashville

Schenectady

•

Glens Falls

Worcester

Sabre-Pinon

Northwest Production

Place,

New

Diapers'

Gardens,

York 7, N. Y.

j
,,

i
i *

to 9576

WILLIAM DANA SEIBERT, President
;.

•

•_

■

Thursday, June

27,

ary

&t4te and city news,
Other

Chicago

Offices:

I1L

etc.)..

135

South

(Telephone

eieftringa,
Salle

St.,

2-0613);

B.
-

C.
.

Pacific

Eng¬
,

Uranium

•

by William B. Dana

*Prospectu8

Request

second-class matter Febru¬
at the
post office at
New

Subscription

Pan-American
Dominion

Union,

$60,000

per

year;

Canada,
$63,900
per
Countries, $67,000 per year.
Other

Bank

$40,000

and

per' year.

Note—On

Publications

Quotation

W! V. FRANKEL & CO.

Rates

Record

the

funds.

39 BROADWAY, NEW YORK I
WHitehall

3-3960

Teletype NY 1-4040 & 4041

—

year.

Monthly.

fluctuations in

of exchange, remittances for for¬
eign subscriptions and advertisements must
be made in New York

INCORPORATED

(Foreign postage extra.)

account of

the rate
La

STate

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

quotation

London,
Smith.

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

Other

Every Thursday (general news and adr
vertising issue) and every Monday (com¬

Company
as

25,- 1942,

}

1957

plete statistical issue — market
records, corporation news, bank

1957

Reentered

HERBERT D. SEIBERT, Editor & Publish©*

TELETYPE N. Y. 1-5
Chicago

Quinta Corp.*

land, c/o Edwards

COMPANY, Publlsherf

REctor 2-9570

Bostotf^

Universal -Transistor*

Reg. U. 8. Patent Office

Albany

Rare Metals Co.

-____

Corner—1

FINANCIAL CHRONICLE

Exchange

•

^Column not available this week.

page

Spencer Trask & Co.
TELEPHONE HAnover 24300.

Mold Oil &

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

Washington and You

Dallas

revenues

PREFERRED STOCKS

Members New York Stock

The State of Trade and Industry.

Los Angelas

Chicago

;__—

Philadelphia

and You—By Wallace Streete
Security I Like Best

The

Direct Wires

*
46

—

Security

40 Exchange PI., N. Y.
Teletype NY 1-1825 & 1-4844

Securities
>
20

Registration

Salesman's

HA 2-0270

British

—

May

Securities

Prospective

Security

counter-infla¬

during

___________

Wilfred

Singer, Bean
Mackie, INC.

Governments—

Securities Now in

Federal

Canadian Superior Oil

—Cover

—

Railway Secuirties

billion4:dollars,
primarily to re¬

mounting inflation.
present

Public

1948, the President

cash surplus for calen¬

of Trouble Spots

Stocks

_______

Our

Sprague Engineering

—_—„

(pp. 4? 37) :•

'47

News About Banks and Bankers.—

Reporter

reported

Indications of Current Business Activity.

Our

dar

Washington Ahead of the News—Carlisle Bargeron

Observations—A.

In January

Advance Industries

Stock

Bookshelf———

safeguard

which

Pacific Uranium

—

It-(Editorials)

imperative "under
present conditions to provide that
possibilities

Rising

——

;■

[against

JCY 215

Problems

Eiiizig: "Accounting for the Unexpected
and Sterling"——
L

against

debt ?

HEnderson 4-8504

Dealer-Broker Investment Recommendations

reduction

...

conti^7encies7rr.VpSiicy

futm-e
0f

lie

debt

request

J.F.Reilly&Co., Inc.
•

Coming Events in the Investment Field

would.add

times to strengthen the

prosperous

nation's

;

pressures and would

the

should

Regular Features
As We

point, .The

now

Study Directed by Solomon Fabricant Warns

WILLIAM

Prospectus

Thomas W. McMahon, Jr. Analyzes Small
Business

In July. 1947,

same

Accompanied
Janeway
.

Eliot

revenues over expenditures while
employment is high and the total.

Inflation.

For many years we

Continue,

Says

Published

QUINTA CORP.

International Finance .jCorp. Makes First
Investment.—.—^ 17

The COMMERCIAL and

RIMROCK TIDELANDS*

Clarence Y. Palitz Recommends Creation of
"Industrial
Acceptances'* to Finance Small Business_______-____i__

of sound public finance that
calls for a surplus in government

day conference sponsored by the National
Citizens

•

dan-

rule

from 1929 to

sought ineffectually to
prices and incomes to a

expand activity

consistently

measures

WESTERN

MINERALS

Whittlesey

Housing: Starts to Increase in 1958,
According to
Melvin H. Baker__
L

January 1947 he said: "Expert and
lay opinion is in agreement orr the

we"

UNITED

Teletype:

Economic Report of the President
said:

our country wallowed in the
trough of the Great Depression,

reflate

Babson.

Natural Gas: What It Means to
Canada—D. K. Yorath_
Recent Economic Trends in British
Columbia
—A. E.
Grauer______i__:__i________^______

Bonds

and

gress

mended

reiterating

^1939,

while

s: PACIFIC URANIUM

:,v,, T-Premiet: E.. C. Manning..

accounting,
and
risk that such financing involved.

of income is large."

quarter-century.

' "

£!

its

Tunning start

fi! ™
tions, we

NORTHWEST

•

Canadian Capital
Markets—Nigel H. Gunn.________
Alberta's Contribution to Canada's Growth-

•

4-6551

PRODUCTIONS

;___—

i; The

harrcst of in¬

were

-thereafter till
a

more on

has

Joins Hall & Hall

General Investing

$20 billion in

spend

equipment

' ;

Edman, Gov¬
Employees Building. ^

ernment

Faroll & Co., 29 Broadway,

Analysis

South La Salle Street,

135

FAIRFIELD, Calif .—Joseph W.

•

staff of McGinty &

Also available are data on Union Pacific.

Worthington Corporation
•

'■]

Company, Inc.—Report—Thomson & McKin-

Bissell & Meeds,

Or Else"

...

■'*!.

(Special to The Financial Chronicle)' "

Gas & Electric Company.

Ltd.

Washington
.

•'

Gloeilampenfabrieken—Memorandum—Burnham

United Utilities

"More Research

V'/* *

No.

McGinty Edman Add

; ^

yv;,y

Street, Toronto 1, Ont., Canada.

United

Highlights

J'' "V

•

Distributors, Inc.

Analysis

6, N. Yt

Union Carbide

Going To Press—

Also available are

MJich.

26,

Company, 61 Broadway, New York 6, N.

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

Supercrete

United

Company, 15 Broad Street, New York 5, N. Y.

non,:

Securities—Bulletin—C. J. Devine &

Financial Institutions

& Company, 31

Corporation of America r—Analysis

Industries, Inc.

American

•

For

Hansen

Dochnahl

Broadway, New York 4, N. Y.

Co., 1 Wall Street, New York 5,

Co., 48 Wall Street, New York 5, N. Y.

Calif. —Joseph E.
is now with Wulff,
& Co., Burrell Building. : >
JOSE,

Stephenson

Wall Street, New York 5,

Tax Exempt vs. Taxable

SAN

■

Pacific—Data—Joseph

J.. P. Stevens &

analysis of Pennroad Corp.

Standard Packaging

...

•

:
;

Securities Outlook for the Investor and Business Executive—
Brochure—G. H. Walker &

Spokane Natural Gas Company—Analysis—H. Hentz &

Quotation Bureau Averages, both as to
over

Broadway, New York 6, N. Y.

industrial stocks used in the Dow-

performance

Loeb, Rhoades & Co., 42 Wall Street, New York 5,

N. V. Philips

Jones Averages and the 35 over-the-counter

With Wulff Hansen

Capital Fund of Canada, Ltd.—Semi-annual report

New York

Street, West, Calgary, Alta., Canada.

:'■> parison between the listed

(Special to The Financim, Chronicle)

Co.—Memorandum—Wm. C. Roney &

YTv^-y.y-y-

Northern

Markets, 510 Fifth

Oil

—Carl M.

.or

Portsmouth Steel Corp., Scotten, Dillon Co.,

Chemicals

New York

Singer & Co., 74 Trinity Place, New York 6, N. Y. > r

Co., has also joined the
Paine, Webber, Jackson &

Curtis.

Bulletin — Weston * Smith Associates, 33 Rector

Instruments, Inc.

available

N. Y.

5, N. Y.

Bache

Harris, Upham & Co., 120 Broadway, New York 5, N. Y. Also

Ltd.,

Review—Study—Harris, Upham & Co., 120 Broadway,

New York

•

Foster, previously with

Don

staff of

his name

1947.

in
<

1915

Co.

Carter

Lester

formed the firm bearing

Corp., 80 Wall Street, New York 5, N. Y.
Minerals

61' Broadway, New York 6,
Market

with

P. W. Brooks & Co., 115

—

Standard Tube Co. and United Shirt

Yamaichi Securities

Japanese Stock Market—Review—Nomura Securities Co.,

Barclay

■

having begun his career in

Company—Analysis—Glore, Forgan &

Building, Detroit

Buhl

memoranda

Midwestern

York.

New

Marold

years,

Broadway, New York 7,

of New York, Inc., Ill

Company

;

Also

—

Screw Products

Masco

Bargain Basement Railroads.

Memorandum

Street, New York 6, N. Y.

Co.,

42 Broadway, New York 4, N. Y.

McDermott & Co.,

—•

Street, Boston 9, Mass.

Kroger Co.

yield 6%—Peter P.

Hedge—Suggested portfolio to

business

for

Bache & Co., 36 Wall

—

e e n

the invest¬

York—Table of related prices

Analysis

-a

Barclay

has

Royal McBee Corp.

Koehring & Co.—Analysis—du Pont, Homsey

Street, New York 5, N. Y.)
Inflation

Mr.

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

Wall

La>

South

Also available are bulletins on
Line, Harshaw Chemical, and Filtrol Corp. •

International Harvester

Scotia, 44 King Street,

economic matters—The Bank of Nova

Coast

Atlantic

Grinnell Corp.

Ont.,

the-

Chicago office,

y Street, New York 5, N. Y.

of current Canadian

Review — Monthly discussion

cated

ment

Chemical—Memorandum—Green, Ellis &

—

Paine,
Curtis.

209

Also available is a report on

Broadway, New York 6, N. Y.

Limited, 44 King Street, West, Toronto 1,

Burns Bros. & .'v

Corporation, 15 Broad Street, New York 5, N. Y.

Greyhound Corporation

Adelaide

Canada.

Canadian

.•

Webber, Jack- '

Stone & Co., 25 Broad

Anderson, 61 Broadway, New York 6, N.

the Electrical Industry in Canada.

—

America.

memorandum

Food Machinery &

Also available is a

Canada.

Ont.,

firm of

e n

Salle Street,

First National City Bank of New

Que., Canada

developments—Ross, Knowles & Co., Ltd., 25

ness

able is

joined the

investm

-u-i

He will be lo¬

Analysis

Co.—Memorandum—Auchincloss, Parker & Redpath,
Fifteenth Street, N. W., Washington 5, D. C. Also avail¬

725

Bulletin—Discussion of Canadian busi¬

Investment

—

has

son

Deere. &

report on Canadian eco¬

(New York office 64 Wall Street, New York 5,
Canadian

v.;

y^;

Street, New York 5, N. Y.

First Boston

Montreal,

Wali

Vitro Corporation of

Carl Location Information Center

news—Bank

nomic

_■

Stern & Co.,-52

Clayton Mark & Co.—Analysis—Hayden,

Canadian Business Review—Monthly

;

Cleveland 1, Ohio.

3809 Terminal Tower,

business, the
Barclay 'In-M
vestment Co.,-

available is a study of
.

CHICAGO, 111.—Harold Barclay,
formerly headed his own

who

Street, West, Toronto 1, Ont.,

Limited, 44 King

•); Canada,;

of
Railway—Chesapeake & Ohio Railway,

Chesapeake & Ohio

Limited

Foundries

Iron

Company

—

able is current Foreign Letter.

CLIC—Booklet describing

Blair & Co. Incorporated, 20

—

Engineering Corp.

New York 4, N. Y.

way,

Canada

via

7, D. C.

Monthly investment letter

Barclay Joins :
Paine, Webber Go.

Harold

Company—x\nalysis—Vilas & Hickey, 26 Broad-

Bristol Myers

:
—

Light

J Street, New York 5»?N. Y. Also in the same bulletin are data y'
'yy on ACF Industries.
V
*■>
,■>" J *rsftv!

Burnham and
15 Broad Street, New York 5, N. Y. Also avail¬

View

Burnham

••

Tobacco—Data—Herbert E.

American

high energy fuels,

27) — Comments on

(No.

requirements

Analysis

Continental Aviation and

Western
Minerals Company, Vaal Reefs Exploration & Mining Co.,
Ltd., El Paso Natural Gas Co., and Daystrom, Inc.—Atomic
Development Mutual Fund, Inc., Dept. C, 1033 30th Street,
Euratorn

—

•

-•

Street, New York 5, N. Y. Also

Broad

send interested parties the following literature:

Allied Laboratories

It is understood that the firms mentioned will be

City 10, Utah.

/ Co., Dept. K, Box 899, Salt Lake

Dealer-Broker Investment
-

West—Booklet describing in-

the Growing

opportunities in area served—Utah Power &

dustrial

DEPENDABLE MARKETS

Northwest Production
Invest in

research.

Three States Natural Gas

Delhi-Taylor Oil

TRADING DEPARTMENT-

\V Florida's

Golden\JTriangle

Big Piney Oil & Gas

TELETYPE MM51

TROSTER, SINGER & CO.
M

Members: N.

Security Dealers Association

Special Reports

74 Trinity Place

COMPANY

IHVISTMIMT SlCUMTItS

Western Securities Corp.

New York 6, N. Y.
Teletypes NY 1-376-377-378

ALFRED D. LAURENCE

Request

1
i

HAnover 2-2400

One

DEMPSEY-TEGELER&(;o.
^

Exchange Place, Jersey City, N.J.
Telephone HEnderaon 2-1000

Open-end

phone to N. Y. C. HA 2-0185

201 S.E. 1st Ave. Miami, Flo.
Phoner Miomi,
<V|

FRonklin 3-7716

Volume

Number 5650

185

The Commercial and Financial Chronicle

(2977)
,

ing.

Three

Speculations

ing

in
,

General

Corning Glass,

' ' l~l i

big

companies
CQvinrfp
in
savings
in

case

petroleum

what

„

•

happen

potentiometer

•

to
Jr.

know

•

net of around

5 +

$175,000 have been

is, it's an
instrument for measuring or com¬
paring voltages.
It operates by

deposits from the air.

small company but it seems to be

converting mechanical motion into

and

acreage

don't

you

urKn+

carving

projected for 1957.-

Analogue

Controls,

Inc.

for itself in prod¬
uct quality.
As n speculation in
an
early stage electronic enterprise which^appears to be well
a name

electrical equivalent, and has
application in a diversity
industry,
and of control and computing devices. Spartan Air Services, because of Now
any eager beaver electronic, managed, the common, around
$3,
its
equipment,
know-how
and ham could make a potentiometerv
may
look interesting to profesestablished reputation should
»
c&Lctunsnpu xepuiauon snouia concf sorts, but the trick is to make sional
and hardy risk takers. For
rugged, overgrown and re-; tinue to
tinno/tr»
Thovo.
prosper.
There are mii. 'em precise.
milWell, Analogue.Con-:• accurate financial details you. are
terrains on foot in search of
This

aerial

burgeoning

reconnaissance

broad

new

After devoting some weeks in
these columns to viewing equities
in mature and even majestic com-

paniessuch

base metal

three quite diverse companies—
gas, air and electronics—whose shares, listed on Toronto
Exchange, makes some appeal to the venturesome.
notes

mining

and time, and made amazmineral ''finds" by delinea-

tions

Enterprise Economist
some

and

achieved

money

By IRA U. COBLEIGH

Providing

Oil

havp
have

over
mote

nmcnar

honsLof squ{T? mi}e*ot the. earth's trols produces potentiometers with referred to. -the. Toronto Stock
WoU Soartan Air
is^iow" cruf concealing billions in min- linearities of 0.002%, which is as'Exchange listing statement dated
the third
fralf 2nd
,Ust wait"}S to be high an accuracy factor as any May 31, 1957.
smwev
comnanv^ Although i°C.
cP °rtuceleUS^lof ..the most
m the world. One W/
The Toronto board, presents, of
timber

Electric,

ore

bodies

netroleum

American Ma-

ana

altitude

photog- important

of these gadgets is course, .hundredsofother -issues,
in
chine and
the-answer, which in guided missiles. After all, if many no doubt. ot: considerable
Spartan
Foundry and '
nhotoeraDhv' h
e nerfomed
Spartan supplies.
, ;r
.
an unmanned big bullet is to be-speculative merit such, as Provo
Texas Utili- ji 'maior
contracts
for th£ --«owrn,~T favestofs attracted ;to this Indusbuilt to, go 5,000 miles in 20 Gas at $3.30 with its.coming new
ties, we n o w
menu?
nf
thP
TTnifpd
and
try will do well to look at Spartan minutes and hit ; a square mile outlets, Security Freehold, a lively >
otier
some
»{- Cinnda
as
well as for manv nri
securities.
These ; are of three target on the nose, the electronic and well run" oil-land play at
fare for those
^ vatp rnmmnips ^ ^ :
^ ^ ' sorts. First there's an issue, of controls have to be virtually flaw- $6.40, and Kilembe Cobalt, a po-;
of
a
more
^ major -V'-..'' $1,500,000; 6%; debentures now-less.: Analogue Controls Inc. seems tentially low cost African copper-■
:. r
spfeculative /
For
mining and oil comselling around 109.
Each $1000 to have qualified on this precision, producer with ^.common near an '
turn of mind. °
panics, Spartan has made airborne bond
bears a warrant to purchase, count; since ; it, is
producing a. all-time low of around $2. Now,
And, quite. at
geophysical surveys all over-the
through Jan. 1, 1962, 100 shares potentiometer for the Titan guided none of these are for investors.
random, our world, and has complete mag¬ of
Spartan common at $10 per missile, and has built a prototype They're for people with sportirig
gaze fell on
netometer and gravitometer equip¬
share.
The
common,
listed
in precision potentiometer for use in-blood who can afford a loss, and
three
ment.
compa¬
Spartan also provides an
Toronto, sells at lOV* and the war-' the advanced Matador missile, and who can view with unruffled and
nies, in three
engineering/ development and rant
traded s e p a r a t e 1 y sells the Sargeant missile.
'
- i' serene mind, wide market swings,
tra
U. Cobleigh
industries, and
planning service staffed by ex¬ around
$4. Spartan should gross
The President of Analogue Con-! If you fill this definition of a
three different
*
':r •;
perts in geology, geophysics, soil above
$5 million this year and trols Inc. Mr. Karl Birken, is a speculator, then some of the hopestages of corporate development.
chemistry and forestry.'
the net may run above $2.30 per-^ highly competent research scien- fuls
we've outlined today may
The first is the best known
In point of
equipment, Spartan share. A lively company in an tist, formerly with Litton Indus- lure you sufficiently to delve furGreat Northern Gas Utilities. Ltd. has
27
fixed
wing aircraft, 20 up-to-the-minute industry- but a tries. He is responsible for both: ther into the detailed facts, a
This is a rapidly
growing public helicopters, plus additional flying speculation withal.
; the design and contruction of a process indispensable to any inutility serving natural" gas to a .equipment on order; and the most
servo-mechanism
The third company oil our list basic
winding telligent security selection.
1
dynamic group of towns in Cen--modern repair, service and mainjs a budding electronic one, machine in the company's plant.
tral Alberta, including
Athabasca, tenance facilities for helicopters.
Analogue Controls, Inc. and it's
Customers of the company inFilor Bullard Partner I
Leduc, Calmar, Hanna
Whether over the moose pas- unusual in that it's an American elude some
very big names in the
and
Drumheller.
In British
Co- tures of
Filor, Bullard "& Smyth,
26
Canada, the tin terrain of company (plant in Mineola, Long electronic industry such as Genlumbia, Fort St. John, the most
Malaya or hunting for minerals Island) but its common has re- eral Electric, Hazqltine, Sperry Broadway, New York City, mem¬
bers of the New York Stock Ex¬
rapidly-growing community in the jn
Kenya, Spartan aerial mapping, cently been listed in Toronto. The Rand, General Motors and North
eastern part of this
change on July" 1st will admit
province, is a s u r v e y i n
g, iphotographing and principal
products
are
electro- American Aviation. Sales are adburgeoning market for the natural electronic probing are
speeding mechanical components, including vancing rapidly, and gross in the Stephen -D. Reynolds to limited
gas supplied by Great Northern,
the job of prospecting and survey- precision
potentiometers. Now in neighborhood of $1,400,000, with partnership.
/
In the southwest
hiicineoo

fnr

nnHr •

VAors

uses

a^vin

•

—

section ot British

Columbia,
plies

Bottled

LPG

Gas

around

Ltd.

sup¬

Victoria

and

Vancouver, and in such mainland
towns

Kamloops, Vernon

and

NEW ISSUE

' •■i'.."

Hope.

June 25, 1957

Perhaps the brightest prospects

for

Great

Northern

Gas

Utilities

relate to gas distribution from off
the Trans-Canada Pipe Line.

'2,000,000 Shares

Brandon,

the second largest city
Manitoba, is under franchise to

receive

from

gas

Manitoba

branch

the

Alberta-

the

line.

The First National

Ontario, Greaf Northern, through
its

331/3.%

interest

Lakeland

Natural Gas Limited, shares in the
franchise to serve 18 towns along
the

Toronto-Montreal

the

pipeline.

new

Ontario,

the

section

Further,

City

of New York

presently

company

delivers manufactured gas to SauU
Ste.

Marie,

and

bottled

gas

Capital Stock

neighboring towns, including
radioactived Blind River.
Because Great Northern has op¬

portunity to share in the broad¬
ened gas distribution in so many
favorable

sections

New

Canada,

developed a
following.
The;
Capital Fund and the

Scudder Fund of Canada

stockholders.

Earnings per share

1956.

selling

The

stock

9Vz.

around

investment

currently
seek

you

little

higher up the
corporate ladder, there's an issue
of $2.50 preferred, selling at 42, a
recent

issue

each share

$2.80

carrying

being offered the right

one

share for each 5 shares of'Capital'

preferred,

Copies of the Offering Circular 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 Offering Circular may legally be distributed.

warrant for

common at $7 till
selliner at 51, and an issue
V/2% debentures due May 15,

1960.

1975

are

on-June 24, 1957. Subscription Warrants will expire at 3:30 P.M.,
Daylight Saving Time, on July 22, 1957.
- : The several Underwriters have agreed, subject to receiving opinions of counsel, to
pur¬
chase any unsubscribed shares and, both during and following the subscription period, may
offer shares of Capital Stock as set forth in the Offering Circular.
B
<
-

purchase of the
of

outstanding Capital Stock

$60 per share for the above shares at the rate of

Eastern

have advanced to 29 cents in 1954,
to 39 cents in 1955, and 46 cents
in

Stock hekl of record

both

are

(Par Value $20 Per Share)

Holders of the Bank's

market

York

•

its

has

stock

common

sizable

selling around 96 carrying
(per $1000 bond) to pur¬

warrants

chase

till

shares of

Dec.

14, 1958

common

and

011

$5,

price

The First Boston Corporation

scale-up after that.
,

Great

has

been

Northern Gas common
around long enough to

Morgan Stanley & Co.

Kuhn, Loeb & Co.
<■

become seasoned, and presents to¬

day a legitimate speculative vehi¬
cle, if you feel the gas industry in
Canada has a bright future.
(We
think it does.)
*
.

The second company we wanted
to look at was Spartan Air Serv¬
ices Ltd.

preciate
science
modern

We all have

the
of

aerial

to ap¬

survey

Clark, Dodge & Co.1
Kidder, Peabody & Co.

BIyth & Co., Inc.

Harriman Ripley & Co.
•

Goldman, Sachs & Co.

■

Incorporated

Lazard Freres & Co.

Eastman Dillon, Union Securities & Co.

Ladenburg, Thalmann & Co.

Lehman Brothers

Glore, Forgan & Co.
Salomon Bros. & Hutzler

the

as the
technique to
battery of engineers,,
or
foresters plodding

speed

.replace a
geologists

come

importance

Dominick & Dominick

,'/•

Stone & Webster Securities Corporation

White, Weld & Co.

Dean Witter & Co.

The Commercial

and Financial Chronicle

Thursday, June 27, 1957

(2978)

that the money supply is
adequate to meet the present
mand, as is evidenced by the

Financing Capital Requirements

Economic Trends

Under Present
By

(velocity)

crease

University

upward.
in

sponding

spiral is th'e

which can drive

wages

in¬

constant

without

improvement

corre¬

effi¬

ciency (output per man-hour) can
cause a decline in the purchasing

professor advises corporations to finance
their capital requirements through debt rather than equities,
under present conditions, even though the economy has lost

Prominent banking

power

of the dollar.

This wage-

price spiral is the principal cause
for the rather sharp increase in

costs

the

forces

have

continue

will

'enumerated

erate. businessmen should

op¬

plan

the assumption (which I certainly

that the value
to come
be higher than at present

hope is incorrect!)

inflationary pressures.

(2) It

A wage-price

prices

School of Commerce,

New York

turnover

other basic force

Graduate School of Business Administration
Accounts, and Finance
,

of Banking,

Professor

(3)

RODGERS*

RAYMOND

crease

bank deposits:

that

apoears

by the,large expenditures of the
not Federal Government,' the ' farm
de¬ price policy, stockpiling, etc. All
in¬ these factors obviously contribute

mercial banks. In fact, some even
argue

of the dollar in the years

secure

will not

materials since some of
and very likely will be lower. The
materials
steps to be taken will, naturally,
have been used up.
A good ex¬
vary considerably
from business
ample is the growing extent to
to business; but it does seem clear
which American industry) has to
that, as far as corporations are
go far afield to obtain iron ore.

many raw

the best sources of such

-concerned,

cost
of transporting
rising and this, appar¬

The

(3)

goods is
ent! v,

will continue

under

advisable

the

present outlook to fi¬
capital requirements

nance

than

increase

debt

through

(4) Organized labbr has through the sale of equities. This
that has taken adopted a policy of demanding an seems wise because it is fairly cer¬
place in recent years.
increase in wages and more and tain that a debt of, say; a 20-year
Since
1.947
wages
have risen more fringebenefits each year. maturity will be repaid in cheaper
more
rapidly than output per The cost of doing business there¬ dollars!
..:: •
v
77*- 7^'7
7
and/or ability to employ stringent fiscal and monetary dis¬
Conclusions
manhour.
This, in itself, other fore, despite the efforts of man¬
\
cipline in view of the 1946 Employment Act.
to
increase efficiency,
things being equal, forces an in¬ agement
(1) The constant increase in the
for the purchasing power of the crease in prices. But, in addition, will not only remain high but will
cost of doing business is bound to
The American economy has lost
dollar will be analyzed.
there is another basic trend in our' continue to increase.
have an effect on the purchasing

upward surge. Professor Rodgers offers this advice
on the basis of his analysis of the long-range outlook of the
dollar's purchasing power, and of the government's dilemma

its strong

commodity prices

upward surge. In a pe¬
uncertainty, it is wise to

its strong

riod

which has an important
(5) Interest rates and corporate
bearing on the purchasing power taxes also are elements of cost
Price Outlook. A decline in the of the dollar. Moreover, this fac¬
wbich, wherever p o s s i b 1 e are
purchasing power of a currency tor may become e ven-mo r e shifted to the ultimate consumer.
can be brought about by any one,
marked on the future purchasing Coroorate taxes are very high, and
in sufficient degree, or by a com¬
power of the dollar.
while it is possible that-in the
bination
of the three following

economic analysis wtyh

start any

enumera-

a n

of the

tion

impor¬

tant factors of

which we

forces:

Any such
listing would,
undoubted! /,
include the
a s
•

they

m a y

taken
t

m o s

a x

expendiat

itaymoiiu

acting as the residual buyers of
government securities, absorbed a
large amount of government obli¬

Koug ei'&

both

ana

tinue to

is the con¬ foreseeable future the corporate

tinuing

gations, with the result that de¬
posits increased very sharply. So
(2) Relations with the Soviet long as the economy was under
Union will continue to be strained, direct government controls—pricebut there is no danger of global wage controls, rationing, etc.—the
Federal

pressure

Continuation of the increase
in tne cost of production and de¬
cline in the value of the dollar
(2)

tendency for workers in tax rate. may dp down to 50%, will cause c further • mergers and
(1) Monetary disturbances or a the service industries to increase anything much below that, level
liquidations. Moreover, it makes
material increase in the money at a faster pace than those in pro¬ cannot be expected for a long
it advisable
for corporations to
supply caused by large Federal duction. Whereas, in manufactur-/ time. It is also fairly certain that
finance their capital requirements
deficits can reduce the value of
interest rates will not go back to
ing, mining and agriculture, it is
through bonds rather than through
he dollar. The sharp increase in
possible to increase the output per the levels of 1934-1951.
equities.
,7;
<
commodity prices from 1946-48 man-hour by the installation of
As the above factors indicate, it
was caused by this force. During
new labor-saving devices, in serv¬
now seems that the cost of doing
he war, the deficit of the govern¬
ices increased efficiency is very business must be expected to rise.
ment was very large. The banks,
difficult, if not impossible. None¬

(1) Govern-':
tures

new

Rudolf Smulny to

■

matic:

ment

7,v.V./.r.'

v.-.'

of the dollar. The process
inflation, it now appears, will
continue, although not at the same
rate as in 1956. t
'
■>
• *r*

power

al-

economy

Prices

This

can

be certain.

following,

Affecting

Factors

local levels will con¬

rise.

•

increase

war.

(3) There will be no real solu¬
of the Middle East unrest in
the foreseeable future.

not

could

the

have

Such

theless, as wages go up in manu¬
facturing industries, it is also nec¬

impact

an>

thus, on
to -increase those in: thedollar..
b» rn»*e, romoefiservice industries, with the result tion
and this will become ever
that a rise in the consumers price
keener
will play an important
index is inevitable.
role
in
restraining thia
—

—•

index
also includes taxes, rent and trans¬
money supply
portation, As is well known, local
its full effect on
the

Moreover,

consumer

trend

must

prices.
Nonetheless. it
frankly faced that when

the cost of doing business goes uo,

although

movement

the

Pressprich Partner

prices and.
the purchasing power of

have

will

essary

taxes have increased
almost an¬
of commodity
nually, and the end, unfortunately,
prices. The moment these controls is not in sight. Rent costs also
(4); Wages and disposable in¬ were removed, however, prices have risen steadily and the cost
moved up rapidly. Monetary dis¬
come will continue to rise during
of transportation has continued to
turbances caused by government
the remainder of the year.
grow.'
*
'deficits are not a factor at present.
(5) The cost of living will in¬
All these factors combined
The budget has, in general, been
crease even further/
have caused the consumer index
balanced and, what is more im-*
As all of these have* an infla¬
to move steadily upward, which
portant, the holding of govern¬
tionary aspect, it is clear that
ment securities by the commercial affects not only wages'and, thus,
prices will be even more impor¬
banks has decreased considerably. the general cost of doing business,
tant to businessmen in the future
but, also, the purchasing power of
(2) Excessive use of bank credit
than in the past. In recent months,
the dollar. V:7-'7m7 ■ -■■■/,;
;77'
wholesale prices have remained by the private sector of the econ¬
relatively
stable,
but consumer omy can also cause a sharp in¬
Sees -Business Costs Rising
prices have steadily risen. As in¬ crease in the money supply and,
Is There No Escape? How long
creases
in consumer prices auto¬ thus, an increase in prices, i.e., a
can
this situation last and what
decline in the purchasing power
matically cause increases in the
will the consequences be?
Obvi¬
of the dollar. This, also; has not
wages of some four million work¬
ously, it is not possible to fore¬
occurred
during
the
past two
tell with any certainty when the
ers, to say nothing of furnishing
years. While the volume of bank
forces of inflation will come to
live economic ammunition at the loans increased materially during
aii end.. In fact, as oj now, the
bargaining table on future nego¬ 1955 and 1956, the money supply "cards are stacked" against such
tiations, the long-range outlook •remained practically unchanged, a development, as the following

tion

inevitably

increase

competition

kc^n

may

profits, tMs cannot gO "O
indefinitely, as the profit mar"b)

SOUeevp

exhausted under such cir¬

socn

cumstances.

■■■■»

"An

address

National

brier,
11,

Plant

White

Mr.

Food

Rodgers
Institute,

the

Green¬

Sulphur Springs, Va., June

1957.

No
•

What- Could

mature

To be guaranteed

upward pressures

"7":/

drastic

$195,000 annually July 15, 1958 to 1972,

unconditionally

yield 4.50%

commercial

for

as to payment

DICK &, MERLE-SMITH

Woodcock, Hess & Co. ~

Wi*h Schirmer,

inflation

to an

end.

v. -

franklv faced

central bank in a democ-

such

as-nurc

such

was

;

Atherton

that, large-sea]^ noin^vRebM
In fact, in this country it would
rmi counter to the clear mandate
of the Fmp'ovment Act of 1946.
Business Policy on

Commerce Commission.

As this

only

present

the Dollar

analysis indicates,

under

political and social

ditions, the long-term

Wi*h

■#
.

della is now

Chronicle)

Mass.—Joseph P. Abwith Trust Securities

Corporation, 80 Federal

with

formerly

was

Street. He
&

Coburn

Middlebrook Incorporated.

JoJr»s J. H. Goddard

trend in the

wil1 become mor^ valu¬
able for a while. But, as it now

Trust Securities

BOSTON,

con-

during times of business readjustment. suoU as we now face, the
will py^n be reversed and
the d^Har

Corp.

(Special to The Financial

purchasing power of the doPar is
downward.* TMs decline will c°rtainlv not b° nrecioitous; in fact,

FREEMAN & COMPANY

Stone

with

wouM dare to

drastic credit restric¬

»mr>1ovment would b°

4.75%, according to maturity

formerly

Webster Securities

tive measures

McMASTER HUTCHINSON & CO.
.

extend

industry to liquidate

adopt

STUART & CO. Inc.

SHEARSON, HAMMILL &. CO.

this would

Naturally,

loans.

racv

inclusive

of par value and dividends by

R. W. PRESSPRICH &. CO.

banks

customers or renew

Aeain, it must be

•

HALSEY

new

inven¬
(Special to The Financial Chronicle) c
tory and to curtail activity. This,
BOSTON, Mass. — Charles P.
in turn, would lead to large-scale
Brown, Jr. is now connected with
unemployment and reduction in
sale of goods, which would reduce Schirmer, Atherton & Co., 50 Con¬
the demands of organized labor gress Street, members of the New
and, thus, bnng the basic forces York and Boston Stock Exchanges.

by Erie Railroad Company.

loans

force

of the Certificates are subject to authorization by the Interstate

PHILADELPHIA, Pa.—On July

7'77

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

monetary control, if
enough, could cure the

course,

forces of inflation.

Equipment Trust Certificates

endorsement

June 21, 1957

To Admit McLear

that

The

on July 1 will
partnership in R.

Smutny

admitted

De Haven & Townsend

(Philadelphia Plan)

Issuance and sale

Rudolf
be

W. Pressprich & Co., 48 Wall St.,
Fiscal disci¬ New York City, members of the
Mr.
pline means, primarily, that the New York Stock Exchange.
government in 7periods of good Smutny was formerly a partner
business activity has a substantial in Salomon Brothers & Hutzler.
budget surplus which it uses, to
reduce the public debt,
As such
discipline has not been practiced
since 1953. it is not likely to be
invoked willingly in the future.

Equipment Trust of 1957

4%% Serial

Rudolf Smutny

monetary discipline.

Erie Railroad

Priced

Arc

Done?.

to stop this infla¬
tion
trend?' The two ! principal
forces at the disposal of the gov¬
ernment are fiscal discipline and
there any ways

old

Solution
Be

3, De Haven & Townsend, CrouSuch Draconian
ter & Bodine, Land Title Build¬
credit measures woul<L have the
indicate:
ing, members of the New York
following effects: (a) They would
counteracted by the decrease in
(1) There is a strong inflation
and Philadelphia-Baltimore Stock
drastically reduce the availability
Exchanges, will admit William Z.
holdings of securities by the com¬ bias in goverment, as is evidenced
of bank credit,
(b) They would
McLear to partnership.
Mr; Mc¬
rrfeke dmoney
rates higher and
Lear was formerly an officer of
would make it extremely difficult

because the increase in loans was

$2,925,000

Second

E»s.y

(Special to The Financial

Chronicle)

BOSTON, Mass.—Henry T.
liams
&

now

Co., Inc., 85

Devonshire Street,

Timbers of the

change.

Wil¬

with J. H. Goddard

Boston Stock Ex¬

Volume

185

Number

5650

The Commercial and Financial Chronicle

(2979)

available, but to moderate its

;

Interest Ra'es and Loan Demand

pansion. *•'

ex-

Housing Starts to Increase in 1958: Baker

Probably all of us will have op¬
to display good judg¬

Daring the Balance of 1957

•

;

Economist, Chase Manhattan

Mr.
;

Bank

time, perhaps we can
hope that the public is

same

Michener, in his analysis of the financial situation, doubts
an easing of monetary policy is appropriate at the present

that

time and concludes that the current
.

thorities.

reduction of

money

./;\

by the Federal

reserves

ALFRED, N. Y.
4*/ Butler ': is engaging
.

ties

problems."

business

/-: South

Main

from

;

Gilbert

—

keep

securi-

offices

Street.

money

ment

Case Opens Office

Baker,

''tight

The"tightness"
has two characteristics. First, borh harder-

m uc

-1 h-aii

past

t he

to^get/
and,'.t

money

second,
; ^s
"

stimulus

rates

commercial banks expanded

that it is hard /
bor

the

with

BROOKLYN

fiast /two; years.-Bank 'loans dur-

Y—A

conducting

high

•

se¬

]

■

securities

and,consequently,

prospects

for

savings

is depressed, but
indications that more

there

are

money

slowly becoming available for in-sured mortgages. The longer range
is beyond the next twelve

—that

months—looks good."

Form Inv. Growth Corp. ;

ing

rapid

our econ¬

year
•

-"In addition," Board Chairman
business from offices at 26 Court
this period increased at a rate; street
Baker observed, "there are other
.1.
cure
funds at
never, previously
experienced in'
£/.•':
x-'k'i important factors that will deter¬
rates- to which
our history.:.iThe rush«for hioney > '
mine volume of the market in the
WitK Revnnlrlc Co
& he .has become
has made credit control .by-our ,
Reynolds V.O.
years ahead. Some of these are:
?'
accustomed >in «,credit authorities much more difr^PHILADELPHIA,
Pa. — Rey"A pent-up demand is growing
the past three v
ficult than before. Limited credit nolds & Co., members of the New
;apd it cannot be satisfied by the
v/ decades, >•. ;
D. W. Michener
;
expansion, even when absolutely York Stock Exchange and other
present rate of home building.
\
ili is t r u e I
necessary, is not an;easy task, and deadipg exchanges, announce that
"Birth rate of about four million
that interest rates are much higher monetary ]authorities do hot be- Frederick D. Morris and F. Gregis
creating ; cramped
; than in recent years, but they are come popular by making it more lory Cause, Jr. are now associated per;-year
quarters for young couples who
^ not high Telative to the long-term difficult to finance the home,vthes with
their- Philadelphia
office,

"grower

the

"The outlook for balance of this

;

Melvin H. Baker

continues," he
stated, "starts should get back to
something more than a million for
next year."
-

George

necessary

the American people,... y

trend

this

full time jobs at

cause

wages

provide

ing.

city

population.

our

"Continued growth in

omy will

the number of families keeps ris¬

I extraordinary. «ged £durmg^the vfedjdeniis
i!

•

building

accommodate

increase, of

Na¬

■

Ji
A*
' v-vrr*
Golden Opens Office

trend

crowded

home in the suburbs.

industrial

growing

the

properly

rate is low and

engage

a securities business. '

In view of the shortage ;of sav-'

ings to meet capital requirements,
deipapds. for; credit made - .upbii

of : i n jt e rest' ,
have risen ;so ;
for

to;boiTOwihg;^\>h^v^';;i:. 55? Queens Boulevard to

of "over-age
wearing out or be¬

"The demand continues to grow
for more public, commercial and

car,

growers find it 'r;

out

building

tional, Gypsura Company,
furniture, and, evenfoecrea- 'Vr*' j
n o t e d- that
17
•* ii
t
.
tion, on. credit. Furthermore, tax
vOrjH I-«CjUliaDie investors
"mone.y for
provisions, under which "the Gov-1
FOREST HILLS, N. Y. — Equi- .house mortr
ernment pays a. part of the: interest "iable
Investors
Corporation has gages is easing
charges" have provided additional been formed with offices at 116- a bit, vacancy

money."

"There

number

are

coming obsolete.

Chair-

Board,

large

structures

of .the

in a n

year.

and

replace
those
destroyed by natural causes.-

get

units
year.''
-

this

fj' ^ OTTCHOGUE, N. Y. — Russell
-KTChe^fii^hcial/intuatio^standard ofin a securities
commonly characterized as one of .the'short.cuis.including a home, a
^
m 0 ces
re*

million next

housing

Melvin

I't •

Security
that; "it now

recently
tight
;
will

900,000

■'

starts down to

au-

Expresses hope that public is coming to realize that

"soft money does not cure hard economic

;

appears

Gilbert S. Butler Opens

major supplier for the hous¬

Analysts
;

ing construction industry told the
New
York
Society of r

hard economic prob-

cure

■

this year and

strength in interest rates

liquidity position of banks; opines demand for capital in excess
of supply will continue at present high levels for immediate
J: futurtand obseryesthatcurrent"tight morfey" situation has
a

coming to realize that soft

;does not
'.vV lems.'
,

Will continue.. Prominent bank economist.notes the weakened

not resulted from

sup-

V dare to
.

citizenship in

our credit au¬
the months ahead. At

thorities

Important factors determining the number of housing starts
in the years ahead are outlined
by Chairman of National Gyp¬
sum Co., after
forecasting that 900,000 houses will be built

porting the hand of
the

By DWIGHT W. MICHENER*
.

ment and good

•;

•

portunity

•

Investors

Growth

is conducting

from offices at

Corporation

securities business
154 Nassau

Street,

New York City.
.

'•

ipvpi

nf mtpfi

Rv nntinp thp trpnri

nor

imrrfln+nmr;nnWi'n

liv6

;>«^Fvi526 Chestnut 'Street, as registered
representatives. '
;

homes.

iCOiiimerciaLpaper^rate, for
av®ra?e? ,a,5£u! nnl0 J01
50-year

the
period 1875-1925. For
rV'the decade ending in 3945, It averaged less than l%.lt is time that

nort

v^erve

nositioh

cluctiori of the liquidity position

'(swciai

tAiN/wcwtiii»omkEi'
financial cnAomoie)

" 'S

various.measures ,of_liquidity,.:wag.

formerN with First

Cnli'for-

when

indicated

year,

with

offices

Solomon.

1 ;

the

upturn

vlhlT

••

It should be made clear

This
,■

of the New York Stock Exchange,

expected to

be demolished

urban

July 5 will

admit

Charles

1 creased moderately

"'Under

6f Serves by the Heserve i •
Rather^iJhe volume
£
ntithhrifie^ Rather/dhewolume
^ r>i
hank

.-reserves:

.-ii,'.

,000,000

at' fhe vehd

tinulng;. Tightness came not as a

First Mortgage

tiie!rcsult of reduced-reserves, "but
of ex')anded de"

Bonds,

Series due 1987
<

W^d--ipr.lo n .
y
Current tightness in the money
bfHwo ch' dhree^decadesf market/, copld / be ; alleviated, - of ;:.-.
Ct'edit'aCithbrities'^"1
*»■»' course/should Reserve.authorities Ry their:; efforts " to Pi
..The liquidity position of banks 'is
less strong, than |t. has been over

Dated

July 1, 1957

•»

■

Due

■'[ v

■:a

Puget Sound Power & Light Company

\ir,

ciSS«a"nces^

these

offering is made only by the Prospectus•

authorities^

member

Wwe,lt,yea«^P^mn W^d^ y

iSaS- S'Kbt

solicitation of an offer to buy these securities•

or a

July 1,1987

period

vexpansion.:Publie*r
^credit conti'ol efforts is^very im- open-market; operations and dis-5
'portant and^'at^the same .time.- count rates./Thus, much depends,,.-,
"very-difficult to estimate, but it upon their credit "policy." In try4
now /appears
that the public*is ing'tofpicture this policy for. the ;
likely to continue to support the -'future,
we • cannot
read men's
current control policy. 1
,v
minds. But we do have a way to"

;

Price 103.459% and acwued interest

....

dications

are

now

/try to anticipate policy decisions,
industrial namely, we know the business fac^

'As to'demand for money, the in-

that

The Prospectus may be obtained in any State in which this announcement is circulated from only such

of the undersigned and other dealers

tors which the authorities feel are ;
important, and which they review
before arriving at policy decisions,
They watch production trends, the./
nearness of our economy to capa-}.';
city, the volume, of-loan demand,
the volume of member bank bor-»
recent years, but the expansion rowing, the rate of expansion of.
has not been large enough to meet capital goods, the movement- of
that amount of money d e ra>a n d .interest.rates, employment trends,
"which
is
normally supplied by Government expenditures, whole*

as may

lawfully offer these securities in such State.

production, farm production, new
construction, retail trade and other

will keep total credit demand
for capital in the immediate future
-close to the present high level.
The supply of avoidable savings
has shown moderate increase in
uses,

savings. This.failure of ;av n?s to
increase by a sufficient amountwas

'for

many years,
..

rates, and spending has

encouraged

illusions to
.

♦From

-the

talk

National

Convention,

Conclusion

the saver has been

f.„

Mr.

Ass'cia*on

Michener
of

Credit

Miami, Ha.

AND

COMPANY

INCORPORATED

BEAR, STEARNS & CO.

attention of the aucurrent" developin these fields, there is lit-

With

upon

shor4
'

tie to suggest that an easing of
policy would be appropriate at the
present time. The objective is, of
r
•>

not to make money

LADENBURG, THALMANN &, CO.

CO.

SALOMON

BROS. &

HUTZLER

SONS

STROUD

COMPANY

WEEDEN

CO.

COURTS

CO.

INCORPORATED

un-

COMPANY

FIRST OF

MICHIGAN

CORPORATION

INCORPORATED

the

ments

course,

MERLE-SMITH

SCHOELLKOPF, HUTTON & POMEROY, INC.
GREGORY

R. S. DICKSON

]

thorities

DICK &

EQUITABLE SECURITIES CORPORATION
R. W. PRESSPRICH

BROTHERS

...

been

be^e
Mens,

A. C. ALLYN

INCORPORATED

actually to be expected since,

j>enalized by artifipially.low interest

sa-[e commodity prices, stock
prices, stock prices,, etc., v

LEHMAN

HALSEY, STUART &, CO. INC.

IRA

HAUPT

CO.

HIRSCH

CO.

THE

ILLINOIS

COMPANY

INCORPORATED

STERN
June 26, 1957.

BROTHERS

& CO.
*

SWISS
-

AMERICAN

CORPORATION
*

Robertson to limited partnership.

redevelop¬

coijclusioiv*4ttay.••be*'St^tcd*{bi iefly. *_•
;;>Deiiiand,SUB Exceeds Supply

offer to sell

Street, New York City, members

roadways,

The

Savilbcentmuer The reads'^ Vl'
>.

announcement is no4

need to replace

that the
u„u ,„e

Smith, Barney & Co., 20 Broad

level which existed

period ending witn!:iyzb.- ^ ?:, Ual, bank finds;that the trend ofi
these ratios Js an'-important matter to be considered as additional;
--.rates to go on up, pr are they to loans are
contemplated, v

Smith, Barney Partner

year

,SiTlve question beforeyUSctoday is,
what ,rcomes+inext?v; Are-, interest

400,000 homes each

estimated

an.

until

substantial

"There will be

;

for

vl- height/] it: falls

be expected.-

can

formed

Avenue, New York City,
engage in a securities business.

homes,' and this is
Partners'are Morris Koppelman,
pressing need for new
Howard Marcus and Donald C.
; y; ■

fairly high level of family

60's,

SANTA BARBARA,^Calif.-Edofi" ward E* Roth is enga8ing,in a sew

banks. This is demonstrable by

fen ^amf ^CS

•

been

501 Fifth

■formations

t the rise in this rate since 1945 has

landed

E. E. Roth Opens

rphe sale of Government secu"ties' by commercial bariks;to sup-

Koppelman, Marcus & Solomon

has

small

causing

prime

Koppelman, Marcus Opens
/

The Commercial and Financial Chronicle

Thursday, June 27, 1957

(2930)

Through

Guanica, because it is one of the

"Operation Bootstrap" and

our

Puerto Rico's Future
Development,

Director of Industrial
The Economic

Development Administration of

this effort

Up to 50% government par¬
ticipation in the costs of market

ward

the

and

Company,

Economic

packaging, distribution
problems through a

Facilities

opportunity to an¬
nounce
that we are negotiating
the construction of a flour and
iced mill on the western end of
this

take

markets.

This mill
will be able to supply 75% of
Puerto Rico's annual demand for
feeds.
costs

set

York

well

are

fully
this

our

future
know

supported

people.

intend

carry

for¬

economic devel¬
opment program we have initiated.

great

locally and Before
too
many
years
have
help channel passed, we will, I am sure, arrive
into U. S. at an era in which our main eco¬

■'[

nomic

problems

will

have

left behind,

been

:-/, / :?'■'/

(3); Personnel training assistance

V V* '
feasibility consul¬
hope that lower tations.
>;-•.<
v.
help to make it
(5) Technical; advisory services

will

(2) Industrial engineering serv¬
ices for: plant improvement.
share cost basis.

on a

of the ani¬

wheat flour and 50%
leed

New

the

Puerto Rican products

Juan Harbor.

the" San

that

other

"and

reasons

face

with confidence because

local design center.

New Floor and Feed Mill

these

more,

and

mal

Industrial
Development

air

many

design,

studies.

Development Bank, the;Puerto Rico

Development

For

product

conspicuous demonstration of how

expenditures, manifesting great expansion in many areas, and ;
stepped-up pace of industrial development, with 200 new
plants opened during the past year. Cites progress toward
developing major oil refining and chemical industry. Outlines
measure to maximize the new opportunities, with cooperation
:with focal investors and entrepreneurs offered through the
Government

trial enterprises.

local businessmen can take advan¬

•

Consulting services

dependence on expensive imports.

Puerto Rico

Puerto Rico's great increase in consumer

Mr. Alcnso reports

Develop¬

Marketing assistance:

(1)

it is a

because

Economic

tage of the many opportunities in
our
local
market, reducing our

ALONSO*

By IIERIBERTO

this venture

with

the

ment Administration:

locally-owned projects in
program. We are also pleased

largest

(4) Economic

W, E. NaHoa Wire to

;Johnson, Lane, Space
/

Hutton

Co.,

members

local producers * to on agricultural projects.
of the New York Stock Exchange,
Administration.
capture a large part of the market
(6) Process 'development
for announce the installation of a di¬
indicated by the more than $40 utilization of local raw materials.
rect
private
wire
to
Johnson,
It was just 15 years ago this
The Future
million annual imports of meat,
(7)
Product and process im¬ Lane, Space and Co., Inc., of At¬
month that our legislature created
j have reviewed pome of the
dairy and poultry products from provement assistance.
lanta, Savannah and Augusta.
the Puerto Rico Industrial Devel- things we have achieved. As we
the United States.
*
We are expanding existing port
opment Company. Let me quote look to the future, we can see
We have reached a preliminary facilities to meet requirements of
from tne t\cV.
signs 0f an even more rapid exJoins Daniel Rice
agreement which will give us a the rising flood of goods coming
"The activities
pansion of the economy than in
(Special to The Financial Chronicle)
modern slaughterhouse that will into and going out of the Island.
fyyMi'kj
of the com- the
past several years. I can with
be able to handle at least 50% of We are building new and special¬
CHICAGO, 111.—Jerome Kohlpany
are fun assurance announce that durthe local production of cattle and ized ports for the new types of man has joined the staff of Daniel
to benefit the
jng the fiscal year that will end
inhabitants of next month, we will have pro- hogs. This modern slaughterhouse heavy industry we are attracting. F. Rice and Company, 141 West
We are organizing a Design Cen¬
Puerto Rico moted the record breaking number should be able to give a far better
Jackson
Boulevard, members of
return to the cattle raiser, lower ter that will, among other things,
by discovering 0f 200 new plants for a single year,
the cost of meat, and provide a help locally manufactured prod¬ the New York and Midwest Stock
and
develop- <po give you an idea of the pace at
ing to the full- which the industrial program is whole new range of locally canned ucts to compete in export markets; Exchanges. Mr. Kohlman was pre¬
est possible
advancing, let me meiltion the and preserved meat products.
and to help this development, we viously with H. Hentz & Co.
extent the
I will not attempt to enumerate
achievements made during the
will expand our marketing office
human
and first 27 days of May, 1957. We were the
many
other
developments
Sincere Adds to Staff
in the United States, whose sole
economic re- able to promote 23
new plants that make us so confident for the
(Special to The Financial Chronicle)
sources of the
which will have an estimated an- future.
We know that the eco¬ function will be the promotion of
Island."
nual payroll of $2,342,000 that will nomic pattern of Puerto Rico is
CHICAGO, 111. — Herbert G.
goods made here for export to
Heribtrto Alonso
What exact- be distributed among 1,579 emrapidly changing and that a vig¬ the huge Continental market.
Mayer has become connected with
lv has been ployees.
economic
structure
has
The investment in ma- orous
We are training managerial per¬ Sincere and Company, 231 South
accomplished? Let's take a look chinery and equipment in these emerged. Here are some of the
both
in
professional La Salle Street, members of the
at what has happened in only the
plants will be approximately $3,- things that we are doing to maxi¬ sonnel
York
and
Midwest Stock
mize the benefits we will derive schools and on the j ob—to take New
past six years since the Economic 500,000.
Development administration was
j (|0 nof havc to break this down from the new opportunities with over
'
efficiently the admiriistra- Exchanges.
.

possible

for

—

organized to oversee Puerto Rico:
•'Operation Bootstrap.
In this
time we have nearly doubled the

by m0nths and minutes for you to
realize what these new plants will
mean

projects that are

?mLrk

ftur

fmrn

tht

gram

hv'

i««

expoits by

JSs Sin™'

135 million.

special interest to
all in the field of sales to observe
that
consumer
expenditures on

order

♦

What has this meant to our do¬

were

construction

residential

been

added to

our

And what is

he would

the

has

refineries

have

been

con-

property, structed. One is already doubling
this is only its capacity, and the other is soon

beginning.
The key to our
rapid progress has been the development of the industrial sector of
our
economy.
And the pace of
our industrialization program has
gathered momentum. In 1949. 31
new EDA-promoted plants costing
$10
million started operations—
this was twice as many plants,
costing twice

two

real

more,

much

Together they
now represent an investment of
nearly $60 million. Other oil comto do

same.

even

Island.

take

advantage

times

that

amount

went

remote

lower

who

areas.

select

these

$25,000. The results of
have been hearten¬
ing—from 1953 to 1956, the metro¬
politan-area with 36% of the pop¬
ulation, gained only 24% of the
new jobs.
We are confident that
investors

will

this

large refinery, we expect a simi-

toto, $45 million were paid in

Jar complex of related activities

wages

last year.

'V f '

new

program

Juan, 'May

eRcjai

effect

our

economic

30,

are

particularly proud of

<Lb "if r«". RlSfsw *n.Vi million ammonia products
1957.
and
sulfuric
acid
plant
at

4Yc%
Cumulative Convertible Preference Stock
($100 Par Value)

local industry is such that we are
now

inra^position to offer the fol¬

Price $100 per

lowing package to local investors
and entrepreneurs:

Through

the

plus accrued dividends from date of

delivery

Government Devel¬

opment Bank:

Copies of the. Prospectus may be obtained from any of the several
underwriters, including the undersigned, only in Stales in which
such underwriters
and

which

are

the

qualified to act

Prospectus

may

dealers in securities
legally be distributed.

strong

6,000 sq. ft. to 23,000 sq. ft.
(2) Special buildings built

(3) Special incentives grants to
firms establishing
in
certain rural towns.

industrial

progress.

' '

offers.

to arise, with the subsequent ben- specifications, for sale only.

Gonzalez Chemical Industries, the

—-

Corporation

Our faith in the development of

Around each

by Union Carbide.

ployed by the new operating plants

Kaiser Aluminum & Chemical

(3) Small industrial loans with

ing 1956, more than $200 of EDA-

...

liberal collateral requirements but

promoted plants started operation,
iu

vantage of the opportunities that

growth of our indemonstrated by what

the future

into

I
Ann
i,
to the 30,000 workers em-

take full ad¬

} ' '*■} v.' V\4"

si'

areas

What these refineries can mean
to

? *1

have estab¬

character
and
business
dustry, is
EDA-promoted plants — approxi- is happening in Penuelas, where know-how qualifications.
(4) Loans in participation with
mately $60 million in new invest- Union Carbide's $29 million ethylment in our plants in that single ene
glycol plant is now under the Federal Small Business Ad¬
year.
Taking a closer look at it, construction. This plant will use ministration.
that meant, new investments of $5 gases
generated in the refining
million a month—over $1 million process at Commonwealth Refin- Through the Puerto Rico Indus¬
trial Development Company:
a week—more than $150,000 a day,
ery. Millions of dollars more will
(1) Multiple purpose industrial
$13,000 an hour. Every time our probably go into additional plants
watches ticked off a minute dur- to use the products manufactured buildings for lease, purchase op¬
tions of direct sale ranging from

six

300,000 Shares

encourage

loans.

more,

1957

of indus¬

reach every cor¬

program

local

securities,

June 27,

NEW ISSUE

(1) Long-term mortgage loans
panies are exploring the opportunities for high profits in Puerto for as much as 60% of land and
Rico offered by the tax exemp- buildings value.
(2) Up to 50% of value of new
tion program, and we are confichattel mortgage
dent that before long there will machinery in

had

promoted the year before. In 1.956,

the

The offering

;

the

$41 million more clothing and accessories than five years before,

benefits

may

locations,

facturers

1951.

the

And we
have offered incentives to manu¬

1956~ they" sold find his judgment vindicated by
many aspects of our program, but
by nothing so much as the fact
Expenditures
on
transportation that we are well on the way to
last year were $21 million higher developing a major oil refining
than in 1951.
Bank deposits are and
petrochemical industry on
up from $270, million in 1951 to this Island, where we have yet to
$340 million in 1956. $187 million discover a drop of oil.
Already,
in

than

apparatus.

rental rates that are

lished

favor.

alive today,

solicitation of offers to buy any of these
is made only by the Prospectus,.

This advertisement is neither an offer to sell nor a

•

If he

that

of these

Petroleum Development

1956, they sold $128 million
in food and related products

a 'pro¬

from the San Juan area, in

manufacturers

«i

mestic sales executives?

industrial

our

ner

J jj"?;!5» irfT-^vnn"
^
could ke
IfS
essed
j re-exported, and?that
our

decentraliza¬

planned

trialization

resources on the Is-

tant factor in

Nearly all of our standard indus¬
trial buildings are being located

possibilities, although there were

few

increase.

tion

away

tremendous

goods and services went up from
million in fismi year 1950-51
to reach the major
S»785 million in fiscal vwr 1950-51 .°ur ability
ports of the Hemisphere by ocean
to $1,047 billion in 1955-56, a onetransportation could be an impor¬
third

industrial

had

Rico

Rise in Consumer Expenditures
It will be of

the

embarked

have

shape are really exciting.
As far back as 1930, Governor
Theodore Roosevelt wrote to the
Secretary 0f the Army that Puerto

confronted.

we are

Maximizing the Opportunities

to an 0f us

Some

iv^v*

which

(4) In projects of special signif¬
icance

the

economy

stock investments.

minority

Dean Witter & Co.

The First Boston Corporation

Blyth & Co., Inc.

Glore, Forgan & Co.

Eastman Dillon, Union Securities & Co.
llarriman Ripley & Co.

Goldman, Sachs & Co.

Ilemphill, Noyes & Co.

Incorporated

hazard Freres & Co.

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Beano

Carl M. Loeb, Rhoades & Co.
•

Lehman Brothers

•

Paine, Webber, Jackson & Curtis
Stone k Webster Securities

Salomon Bros. & Hutzler

Corporation

Wertheim & Co.

•

Schwabacher k Co.
White, WTeld k Co.

Volume

185

Number 5650

The Commercial and Financial Chronicle

Atomic Energy Prospects
For Private Electric Power

"kilowatt race" with countries who have

direction, and believes the Government should

not

inexhaustible.

for

construct

Describes substantial problems yet to be

for

f out real hope for lower costs in the future.

electric

the
For

the

last

several

months

this

potential

total

amount

fuel

certainly

prestige

System

the

our

used,

adequate to ideet
all energy demands economically.

cost of

Atomic fuels

fuel

other

and

utili¬

devising

for

transporting enough atomic
to run a
generating station

time.

site

for

The

the

duction.

program

the

this

atomic

will
a

re¬

velopment
This

three

objective

for

struction

rather

believe

such

contribute

con¬

fuel

and

cost

that

terest

important

known

coal, oil
given by

atomic

fuels

our

in¬

exists

development

group

for

reason

the

atomic power.

from

Still

another

reason

for

pay

advocate

program

the

national

nation's

this field.

awareness

present

the

Federal

construction.

leadership

In countries

called

where

Gore

Last
Bill

the Senate and

the

here—and
of

dollars

can

have

chosen

for
are

opinion that the

/SSUE

the

advance-

This is not

The

June 25, 1957

makes

little

in view of the

sense

basic

differences

'in

the

United

States

world powers.

Based

Continued

and

this

offer of these Securities for sale,

;c:V; /-"j

j'i- V"

•.

j.- *mnv

r.
;

■

'i'j'

commercial generation of electric

power

those

costs

plants in

from

/rhrh

terri¬

our

$40,000,000

Mi
%

Planning

Nuclear Power
several

why

reasons

System

important
Middle South

the

companies

and

other

terested

companies in the

west

attempting to set

are

program.
reasons

which

believe

have

companies

JW gjlj

Finance Corporation

in¬

south¬

this

that

these

motivated

Due 1982

W-VAVAV/WAVW/AVAVAV^''
Vv-y.VMW.M.WAMAVAMA'.V^' '*

•"

many

electric

the

Sinking Fund Debentures

/V/X'X'''

quite similar to those

are

•

&./

i /

are

''littii&ttoHi-i $4.

"«<<»

tory.

There

approximating
generated

power

conventional

:■

■

;

power

<•

industry to be sincerely interested
in
the
development of
atomic

Dated

A.-'U

.;'

Due July 1,1982

July 1,1957

power.

The first of these is that

hopeful

that

the

energy

ultimately

means

for

may

reducing

use

are

atomic

provide

down the cost, of generating elec¬

tricity.
from

Currently, electric

atomic fuels

much
from

electric

conventional

United

States.

fuels

But

markedly
is

ence

and

neers

the

potential

this

fissioned,
released

given

that
the

It is

*An

atoms

fuels

only

could

equal

burning

today's

tke_Rnxioa

o'V'

•

re¬

.
.

•1

Lee Higginson Corporation
- -

•

■*
,

*•

;

Blyth & Co., Inc.

energy

that

about

The First Boston Corporation

Harriman Ripley & Co.

1300

Glore, Forgan & Co.

Kidder, Peabody & Co.

;;

Goldman, Sachs & Co.

Lazard Freres & Co.

Incorporated

Merrill Lynch, Pierce, Fenner &

Beane

Lehman Brothers

Paine, Webber, Jackson & Curtis

Smith, Barney & Co.

cars. •

limited
a

William Blair & Company

White, Weld & Co.

;

good quality coal—enough

addres*

m:".'

the

impor¬

split, the heat

however, only
'

to whom

remember

atomic

coal to fill about 20 railroad

With

persons

legally distribute the Prospectus.

,/v'■ :<•••/

historically

uranium

would

tons of

regard

all

pound

may

great record in being

tant

hold.

undersigned
■■

more experi¬
American engi¬

able to reduce costs.

one

■

atomic power

scientists

the

July 1,1957

gained.

have made

be obtained from the under¬

power

is
in
its
infancy "and there
promise that its costs will be
duced

Plus accrued interest from

power

may

signed only in those states and by those

generally costs-

than

Copies of the Prospectus

Price

holding

knowledge,
small, fraction of

Mr.-Hallingby before
-Club,- -May -24

stone & Webster Securities Corporation

•

•'

•

■

•

,*jmu.

t'•*>

;

V" X'

dean Witter & Co.

...

•
5

it}.

Anv<s*tment

1957.

•

cr
.A-

other
con-

page

offer is made only by the Prospectus,
»< i

the

economics of the power industries

ment of power reactor

technology. •
Moreover, we hope ; that the $ef;
sign
under
consideration
ulti- ^
mately may be adapted for the

idea

international "kilowatt race"

;

NEW

use

number

the

program

one

commercial

building

advanced

used

plants of that design.
It

narrowly de¬

was

important part of

British

promising

so-

passed

for

buying things other than coal.
principally for this reason

that

reactor

year

was

seem

particular reactor design — a de¬
sign not generally regarded as

Government

large-scale

British

very

prestige that results from

the

for

nuclear

our

interest

quantities

The

us.

and

avail¬

choice for the immedi¬

that their

in the Congress a sizable
who charges that our pro¬
is not adequate and who

gram

and

sources

oil

gas.

in
of

the

large

coal

dollars

expanding power require¬
ments, so that some of their re¬
maining coal can be conserved and

of
power
de¬
velopment program in the United
States
is
adequate has
become
largely a political question. There
whether

buy

from

stations

Unfortunately* the question

greater

the

their

likely will.

very

eco¬

ate future but to resort to atomic

Opposes Political "Kilowatt Race"

uranium and

assurance

ment

natural

times

reserves

—

contained

The

gas.

our

world's

many

recoverable

the

farthest

areas

that

these

be most at¬

the

shortof

con¬

design

that

than

follows

thorium—is

highest shipping charges for coal,

its

which we
considerable, potential.

has

will

large-scale

reactor

energy

and

resources

have

to have

short, we feel that if industry
does not develop nuclear power
adequately, the Federal Govern¬

expected to pick
It has been

the

able atomic fuels

cost

which, therefore, have to

years.

have

determination

feasibility

think

four

will

program

power

expected

program

for

the

itself.

conventional

pro¬

areas

power should

tractive

search and de¬

extend

coal

power

exceeds

hauling coal

finance

transporting

many

whereunder

utilities

the

period of

important part of the

economics

long to launch

fuel

station

same

cost

overall

enough

conventional

fuel

before

jr.

that

from

those who would have the Federal

of the load.

some

estimated

enterprise

deposits of economically recover¬

where

group

tained

same

serve.

much

run

transporting

development

expect

bound

in the general
area

year

are

less than what the cost would

for

program

nuclear power

HallingDy,

coal

companies

to build

spent

far different from.ours..

running

able

Government get deeper and deeper
into the electric power business.

utilized.

South

free

fuel*
are

doesn't

the need of defending
industry and the -American

fuels will not be

engaged

Middle

ties

Paul

of cause

Since atomic energy is concen¬
trated in such a small mass, the

actively
of

dollars

tax

been

England, for example,, apparently
are

concerned with atomic power be¬

electric

been
work

and

your

have

enhance * - our5 With other countries,suck as
help us in our England and the Soviet
Union,

—

neighboring

have
the

would

system

can

the

number of

it appears that the day may arrive
when
supplies
of.
conventional

energy

directed

; production.

it, should be products.;V^
\
use of fuels
Finally, electric companies

relatively small percentage

lion

foreign "relations1 % and provide whose
new world markets for American
nomics

id view of

production

power

pro¬

large-scale power reactors
throughout the country. $400 mil¬

means

remembered that the

and holds S?

overcome

and

power

government to build

and

power

world

annually—some three
as much electricity

;it .generates today.

crash

development

of
their
lack of uneconomic power plants..
inexpensive fuels
I
believe
that there
is
little
Atomic purpose in
using taxpayers' funds
power seems to be on the way of to construct
nuclear power plants
becoming a. factor in the foreign just, for "the sake of
having a
policy of nations. To the extent
large, number of kilowatts
of
that this country could show the
atomic power. * I am opposed to
way' In atomic* electrid power ; it the
concept of a. "kilowatt race"

four times

sucfr demands, and

the

because

abundant

According to informed estimates,
by; 1975 America will have to
generate
to 2trilliori. kiloV would

nuclear power plants unless it can be shown others will not
undertake non-subsidized or subsidized reactor
development.

atomic

providing a backbone for the
industrialization which has eluded

companies expect to double their
generating
capacity Within the
next ten yfcars; and tq double; it
again in the following ten years.

watthours

salvation—their

Government

for

gram

increasing

them

Federal

through

economic

amounts of energy; As a measure
of this demand, America's electric

•

pro¬

power

conventional
quite high, atomic power
may
be economically attractive
now.
Such countries may view
atomic power as their potential

This fuel sup¬

ever

feated in the House of Representa¬
tives.
That
bill' provided for a

expensive and

where

means

fuels

adequate
they are

are

years,

itless demand for

choice but in this

electricity

many

and

scarce

duced

although

present

accordingly

ply must be considered in the
light of America's seemingly lim¬

■

make

fuel

interest

our

that

reserves

not

;.V reactor design with costs approximating those of conventional
power plants.
The utility executive opposes our entry into a
>

for

reason

realization

for

long-term prospects of nuclear eqwpmenU line and
potentiality of economically attractive atomic power—without profits in the early years—are some of the views expressed by :".,V
Mr. Hallingby after explaining why a group of southern utilities are planning a research-development nuclear
power pro- ;. :
gram leading to possible construction of an advanced
power

•

the

known

Bullish

Present Fuels' Supply

Another

By PAUL IIALLINGBY, JR.*

Vice-President, Middle South Utilities, Inc.

(2981)

U..'i

The Commercial and Financial Chronicle

(2982)

advisor. For example, if the Pen¬
sion Trustees have decided that
the

Long-Term Investment Results
Require Continuous Supervision
By RALPH B.

]

Co., New York City

the importance of research
supervision," and "selectivity" in managing pension fund investments. Mr. Johnson suggests to fund
advisors that investment portfolios should not be static—-no
matter how good the original composition—but must fit the
economic

50%

common

Ten

must

abide

them

supplies of

changed;

balance

to the first

we come

area

tions?

Basically, they

lined

above,

control

the

out¬
which

important

show

the

is, in the long run,
important aspect of in¬

most

assistance.

vestment

the

purchasing

consumers

are

con¬

Preferred
investment

a
pension fund is
that fund does not expenditures. All of these factors
keep up with the changes that affect our economy and, hence,
the
investment
value
of
occur
in our economy—the fund affect
is bound to fail in terms of real different types of securities and
investment portfolios.
protection
for
the
beneficiary.

how

soundly

conceived,

the

Stock; 30% Common Stock.
(2) The fund will hold no
curities

issued

(3) The fund needs
least 31/> %
And

which could

are

applied

well

reflects

changes(. Today,

The first step in the

those

we can see

of investments is the understand¬

technology;

reports

the initial

by Mi*. Johnson before the
of Labor, New
University, June
14, 1&57.

guide lines which must

considered

pose

any

offer, to mil

nor

solicitation of an offer to buy

funds

started,
of

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

" '

June 18,1957

-V'••

5%% Convertible Subordinated Debentures, due 1972

Price 100% and Accrued Interest

Due June 1,1972

Copies of the Prospectus may be obtained only from such of the several underwriters,
including the undersigned, in States in which such underwriter is qualified to act
as a

dealer in securities and in which the Prospectus

may

remains

fact

This

but

have

Trustees

Policy

tne

fit

the

time.

which

example,

falls

Mallgartcn & Co.

viously,

(Incorporated)

Lee

Iligginson Corporation

F. S. Moseley & Co.

Goodbody & Co.

] Johnston, Lemon & Co,

II. Ileiitz & Co.

W. C. Lang'cy & Co.

fund

R. S. Dickson & Company

vestment

The First Cleveland Corporation

changed

Julien Collins & Company

Dempscy & Company

jCruttenden, Podesta & Co.

Ilickey & Co., Inc.

Stein Bros. A Boycc

j Jones,

Kreeger A Hewitt

Incorporated

single tech¬

nological revolution, but is in the
midst

different

—

though

overlapping—r evolutionary

changes

follows:

(1) A change in research itself,
as

our

the

scientists make full

use

machines, the electron microscope,

Assuming that when the pen¬
effective.
plan is first invested, all. of
(2) A change in medical tech¬
these
considerations
are
taken
into account, the investments that nology which is lowering infant
have

been

made

must

mortality, extending human life,
reducing the toll of disease and is
a large part responsible for our
"population explosion."
(3) A change in population re¬
distribution, as new transportation

con¬

stantly reviewed in case changes
have

occurred.

Experience has shown that as
habits change, as tech¬

consumer

improvements

nological

"in¬

are

and communication facilities

troduced, the value of companies
also

have

vested

portfolio

keep

must

with these changes.

would

you

trate

features of

some
our

of the facets

new

technology advances the pro--

tribution

and

and how

economy

u c

the future,

t i

i t y

and

income of our

workers.

it will effect investment programs

way

(5)

think that in this

paper

change

work

Continued

the true meaning of continu¬

may

All of this stock

page

having been sold,

this advertisement appears as

accom¬

of record

matter

only.

sucxi as

have to be

common

stock

must

100,000 Shares

SARATOGA PLASTICS,
(A

New

the

York

Inc.

Corporation)

this

into

economic

funa's

consider

must

Common Stock

in¬

long-term
the

($1.00

these

needs

must

which

consider
have

Value)

Price

$1.75 Per Share

And, finally, he-

the

been

Par

ac¬

complimented by

are

investments.

ground

outlined

rules
•

by the

Offering circular

request

Mullaney, Wells & Company

see

whether

not

these rules need change.
Once

Irving J. Rice A Company, Incorporated

the

policy lias

been

F. S. Yantis & Co., Incorporated

policy decisions.

Yarnall, Biddlc & Co.

point

out

excellent
i

I should like to

that no matter how
the
original choice of

investments,

each

security

UNDERWRITER

cre¬

ated, the next step is the selection
of investments to compliment the

must

Reilly, Hoffman & Sweeney,
141

Broadway, New York

our

A change in income redis¬
creating a huge greatmiddle-class market as our

(4)

will illus¬

theories of continual super¬

discuss

and

tolerable in all seasons of the year*

some

vision. What I would like to do is
to

per¬

industry
and people move to southern areas
which, with air conditioning, are

hindsight,

show

actual problems which

suburbanization

the

population

deal

than

Rather
I

mit

in¬

well

changed.

tuarial needs of the fund and how

Caldwell Phillips Co.

First Securities Corporation

a case

electronic data processing

new

atomic tracer techniques, etc., etc.,,

company.

whatever, the in¬

how

fit

vestments

Straus, Blosser A McDowell

Kormendi A Co., Inc.

Peters, Writer A Christensen, Inc.
Russ A Company,

consider the

and

Trustees

;

investments

•

then, is the first area of
supervision.
The ad¬

trend.

Fahnestock A Co.

economy.

sion

nec¬

the needs of the fund

outlook

Reinholdt & Gardner

Barret, Fitch, North A Co.

Emanuel, Deetjen & Co.

was

change to

program

visor must

Dittmar & Company, Inc.

the

j Arthurs, Lestrangc A Co.

major changes
They state that

some

continuous

Kalman & Company, Inc.

Pacific Northwest Company

points
is

money

Ob¬

change.

Rauscher, Pierce & Co., Inc.

Baxter & Company

But,

holdings.

This,

Gregory & Sons

the

must

this, the change

Stifel, Nicolaus & Co., Inc.

II. M. Byllesby and Company

Lester, Ryons & Co.

prepared

which

research

this Nation is not in

various criteria
measure
the invest¬

thought

lk% return

plish this need.

(Incorporated)

Baker, Simonds & Co.

actuary

greater increase in

Boettcher and Company

Ilirsch & Co.

the

then

essary

the

fDempsey-Tcgeler & Co.

that another

Bacon, Whipple & Co.

our

has

study

this

that

tion, would be if the consultant
Dean Witter & Co. actuary decided that the fund must
increase their rate of return.

Francis I. duPont ic Co.

Central Republic Company

markets.
point, McKay-

of actuarial evalua¬

area

to make the research dollar more

into the

Company

Goldman, Sachs & Co.

clime,

the

their

changed

legally be distributed.

Incorporated

j Eastman I)il!on, Union Securities & Co.

stock.

common

economic

the

Another
A. C. Allyn and

stock, in

common

figure has varied with the changes
in

number

opposed

were

its money

Dated June 1,1957

1938,

trustees

portfolio when they remem¬
the
catastrophic
experi¬
ences of the early 193Q's. But as
the years wore on, these men be¬
gan to see the handwriting on the
wall.
They recognized the tre¬
mendous
growth potential pos¬
sessed by our industry; they saw
how the depreciation of the dollar
was
eating away at the funds
"real" capital, it's equivalent in
purchasing
power.
Today
this
fund has approximately 67%
of

Fairbanks, Morse & Co.
V' ;

originally

investment pro¬

Associates

excellent

the

given

own

accomplishing

and
inefficient
in a growing industry is
not
a
good
investment either.
Therefore, it is the job of the in¬
vestment advisor to be constantly

portfolio

g e d

competitive

Shields

managed

watching

ana

ways

this research expenditure

To illustrate this

company

the

$15,000,000

V.:': '

changes is not a good
investment. By the same token, a

better

How will they do this?

future

out

best

the

that

the

companies

investing their funds in companies
which are actively preparing for

nological
badly

well-m

use

gram.

in an, industry which is
losing its market because of tech¬

handle.

was

back

the

bered

'V-

that

fund

the inclusion

NEW ISSUE

axiomatic

that

money.

to benefit its

is based which will
actual experience in one- ment worth of

this

When
an

by some examples:
example, let me

find

The
will

company

change. I
could best

point

make

media.

problem * which

the

neither

may

first

the

upon an

This advertisement is

this

illustrated

For

by the investment

companion

that

general,

the

(3) Outlook for the individual
companies within the industries
he has selected as suitable invest-

dictates

are

decisions

supervising

ment

investment in

spending large sums of money
improve their existing products,
discover new products, and, in

economy.

If that happens, logic
good
investment
principle

think

restrictions

These

Conference

Annual

York

and

portfolio.

*An address
10th

change,

ing of the restrictions which have
been placed upon the investment

these

rapid changes taking place in our
industrial

for these

sons

supervision

investments,

means

are

The outlook for the econ¬
omy as a whole. \.
(2) Outlook for the individual
industries
which make up the

For
these reasons,
no
invest¬ variations of those mentioned.
supervision, therefore,
really means a constant and con¬ ment portfolio can remain static.
Policy Shift to Equities
tinuous check on the investments The portfolio and the investment
in that portfolio must change as1
When
these rules were origi¬
in the fund portfolio.
Experience has shown us con¬ economic circumstances warrant. nally established, it is fair to as¬
keeping
up
with
these sume that the Trustees had care¬
clusively that the future cannot' The
be forecast. The world in which I changes and the taking advantage fully considered the problems and
we
live is changing at a rapid of them is what is meant by con¬ had made their decisions. But as
time goes on, many of the rea¬
pace. Our economy and the in¬ tinuous supervision.

market

Stock:

stock

future.

'•

;

Research

(1)

Continuous

vestment

same

something to the investor.

area

closely

ing:

others

Common

return of

many

this money which has been spent

advisor must constantly be watch¬

invested capital.

there

billion invested in research. Now

means

This

had

that the next decade will see' $100

to
factors that govern the

common

se¬

company.

rate
v

Stock:

bond market.

employer

the

on'

investments made.

(1) The fund will be invested
in
00%
Bonds;
10%
Preferred

stantly changing and we arc ex¬
periencing further changes in the
size and allocation of government

matter

of the

habits

Investments

that

effect

this

1956,

calculations have been made

and

return and hence the value ol" the

basic

1.455% of our G.N.P. In
years, research outlays
amounted
to
almost $37 billion

and

Board

Reserve

and

those

the value of the

their decisions for this too has

are as

rules

Federal

the

philosophy or
of the investment
example of these rules

ago,

grown to

investments made. We must watch

management
fund.

years

research

for, if an im¬
this can have a

money

occurs,

definite effect

supervision — the Su¬
pervision of Policy Considerations.
What are these Policy Considera¬

would be:

Continuing Supervision

of Research

Increased Importance

What to Watch For

continuous

individual firms before taking action.
The

supervision will become more

apparent.

which might af¬

security.

are

they

So,

common

■

invested

ous

if any changes

see

they have restricted

until

needs. Explains what to watch for in bonds, preferred and
stocks; singles out as one of the dynamic changes the
growing significance of research; and cites the missile industry and its economic ramifications to illustrate transitions
constantly occurring, and the need to make careful study of

]
4

and

vestments

meet actuarial

long-term trend, and

outlook and

bonds

be watched to

business, gov¬
those which
are
ernment, and our educational in¬
stitutions were spending less than
legal for savings banks in the
Bonds:
What do we watch In
state of New York, then these are the bond
market? We watch the $2.5 billion on research per year.
the
qualifications
of
the
fund. interest rates and how these in¬ In 1956, these groups were spend¬
But when all of these basic quali¬
terest rates compare with the vari¬ ing about $6 billion per year on
fications have been discussed, con¬
research.
Or, to put it another
ous
types of bonds available to
sidered and decided upon—then
the investor. We must watch the way, in 1947, 0.973% of our Gross
the supervisor of the fund's in¬
National Product was devoted to
long-term
future demands and

department, "continual

]

investments

Prominent security dealer stresses

Thursday, June 27, 1957

fect the investment worth of that

fund

stocks

JOHNSON*

Partner, Smith, Barney &

have taken place

Inc.

Telephone BE 3-3030

Number 5650

Volume 185

of, policy. The exposure to com¬
petition and putting her economy
in a competitive position has made

Foreign Trade Policy and

Germany strong financially.

Stockholder Relations
Chairman

the

Policy of Job Protection

Board, General Mills, Inc. '

many

give

too

of her industries and
much protection to the

Britain has
policy of job pro¬
extreme. In fact, if

jobs of her workers.

delving into the dichotomous foreign trade position of U. S.
stockholders, Mr. Bullis cannot "see how it is possible for any

also followed
•

tection to

industry to justify to its stockholders requests for protection
;••. while at the same time it is seeking concessions to exploit ^

unemployment in the United
States, were in proportion to Great

After reviewing the importance of freer
trade, and recent economic developments in several countries,

Britain, we would have only 670,000 unemployed instead of our

foreign markets.".
.

2,670,000 average unemployment.
Our unemployment figure is about
4% of our labor force and it is the

the head of General Mills stresses the vital economic imporof

tance

expanding foreign trade and its role in
foreign political policy;

sound

upon

the

which

materials

the people with whom we do busi-

increased

that

We should tell

our

must

balance

our

strong and

general

amounts of foreign

stockholders,

and

public

aid which we

new

are

Charles Friedman, general part¬
in

ner

Seligman, Lubetkin & Co.,

will

aggres¬

'■

Both the public and corporation
shareholders should know that the

become

retire

limited

Helen
from

partner
Friedman will

limited

partnership

June 28.

we pay for mobility in our
—that we are not self-sufficient.
force, so that we can start
enterprises, close those which For instance, we are dependent
inefficient and have some lee¬ upon other countries for all of

Forms R. R. Newman Co,

labor

large

„

United .States needs foreign trade

price

The second fact is that the

In the best interests of both the

•

firm

July

economy

sive.

■

name
of
Seligman,
Co., 30 Pine Street,
New York City, members of the
New York Stock Exchange, will
be changed to Lubetkin, Regan &
Kennedy.\
,.V: ■, .v,':■

Trade
is
a
two-way
street. Therefore, imports are as
important as exports in keeping
our

The

Lubetkin

explain that in the long
plus capital invest¬

abroad

exports.

To Be New Firm Name

imports

ments

Lubetkin, Regan & Kennedy

expanding foreign trade is
vital to an expanding economy.
run

'
,

that

We should

foreign

jstockholders

•

abroad.

ness

trade is in their interests.

France has endeavored to shel¬
ter

standing, respect and friendship of

imports of
into
their
products.
In
such
companies,
management should tell the stock¬
indirectly,

holders
r

HARRY A. BULLIS*

(2983)

The Commercial and Financial Chronicle

Rubin
a

Newman

securities business

engaging in
from

offices

our tin, industrial diamonds, natu¬
for expansion of our various
at 2155 Grand Concourse, Bronx,'
industries.
The low unemploy¬ ral rubber, coffee, tea and cocoa. New
cies should we have? We all want stantial gains in foreign trade.
York, under the firm name
We
import nearly all of our of
I doubt if the American people, ment in England is purchased for
peace and the
R. Robert Newman Company,
or
even
a
substantial: proportion the price of "stickiness" in indus¬ nickel, chromite, asbestos, cobalt
political, mili¬
and magnesium, half of our tung¬
of
tary and eco-.
businessmen, t appreciate
the try add sluggishness to change.
sten and lead and a third of our §f
Milton Zelier Opens
no mie
pro¬
gains which we are now actually The/net result is that weekly
copper and zinc.
•ROCKAWAY
PARK, N. Y.—
grams which
receiving from the Administra¬ wages there average a fourth to
We should explain the economic
Milton Zelier is engaging in a
will insure
tion's enlightened policies for for¬ a third: of ours.
aspects of foreign trade, botn as securities business from offices at
peace. One
eign aid and foreign trade. {These
to exports and imports, how for¬ 122-20
Policy of Protectionism
Ocean
Promenade.
Mr.
type of insurgains are substantial and they are
eign aid has been a stimulant to Zelier was formerly with Glick'
ahee is our
Great nations do not Slip from
helping ; to* { keep ; our- economy
trade and how the Administra¬
& Co.
program for !
strong, while at the same time efficiency or recede from a place
tion's program for increased trade
defense and
assisting other countries of the Of importance and power in one
will be beneficial both at home
Free World to build more strength big swoop.
Abraham Sorkin Opens
military aid.;
Rather they weaken
and abroad, so that aid may be
Another is the
their will to remain efficient by
into their economies.
•'
.BROOKLYN, N. Y.—Abraham
reduced.
small
doses.
Little
capsules of
prog ram of
Sorkin is engaging in a securi- ~
We
should
Developments in France and ' "added
impress upon our
economic as¬
protection," merely to re¬
ties business from offices at 301
Germany
sist an.ee to
duce temporarily the pain of com¬ stockholders
the
significance of East 92nd Street under the firm
Developments in France . and petition, reduces also the incentive foreign trade in a sound foreign name of AAA Mutual Funds.
help other
Harry A. Bullis
.
countries bol¬
Germany {.should carry an impor¬ and the ability to compete. Those
A stronger position in
policy.
ster
their
independence,
raise tant lesson for us. On the basis who feel impelled to ask for some
Jacob Burke Opens
in
a
tariff i case world trade will enable us to com¬
their standards of living and cre¬ cf recent reports, Germany has consideration

what

have

kind of national trade poli¬

ei,ven h?ve rpc-mtoH

4— sub¬

way

ate a more favorable climate for accumulated $4.8 billion, in gold should state their case honestly, pete
more
effectively with the
friendship with our country. And and dollar, reserves. France, in and just as honestly accept the Communist Bloc. Increased trade,
very important is our program to contrast, is in a difficult reserve verdict. This is a Free Enterprise
especially trade through private
enlarge our trade with the rest of position. The spectacular element system and it is a Profit and Loss
the world.
about these facts is that Germany system.
The industry which still channels, will gain the under¬
s
prepared to make a loan to leans upon protectionism should
Businessmen,, as well as others
who watch our economic affairs, France to assist,in stabilizing the accept society's ultimate verdict
should

the

Last year our

billion—19%

1954.

dyer
lew

our

exports reached $17
over 1955 and 37%
of

1957

our

are

running

exports

record high

trade .is

foreign
phenomenal. ; It

almost

reveals two

The
trade

increase

The

our

important facts.
is

first

that

our

foreign

maintain the

is assisting to

at
increasingly. high
at .a time when there is a

economy

levels

t^ndepcy. jtoward

decline in some

has •in

which

ford

before the
Committee for a National Trade Policy,
Washington, D. C., June 14, 1957.
address

Mr. Bullis

can

buy,

any

On the other

for

not

this

efficient than our

265,000 Shares

how

see

possible

Duquesne Light Company

industry to justify to its
stockholders requests for protec¬

There
ers

who

policies.

Germany has freed her

any

tions

trade more and more as a matter

solicitation of an offer

Relations With Stockholders
I

hand, France has

Yellowstone Boulevard.

cannot af¬

Common Stock

than

petitive. '

securi¬

of such shares. The offering is made only by the prospectus.

policies - have" done
tion on some-of its-products, while
just keep Germany's
at the same time it is seeking con¬
trade free.
They have kept her
cessions to exploit foreign markets.
entire
economy
free and com¬

nationalist

ties business from offices at 67-71

offering of these shares for sale, or an offer to buy, or,a

.an

to lines

war.

situation is significant be¬
it reveals that sound inter¬

This is vol
v-

survive.

wofrd

be less

prosperous
over

competitors abroad.

This
cause

it cannot

competitive

been .very "protective" and "re¬
strictive"
in
her
foreign trade

sectors.
4 *An

Now

in Europe,
excepting only the Swiss franc. It
is
prepared to lend money to
France, which was or? the winning
side in the

levels.

War.

the strongest currency

air Aw ell' above 1956. Our imports
also

protection
in
these
times, it should shift

Second -World

And during the first

months

that

Germany is the land which was
defeated and laid prostrate in the

HILLS, N. Y.—Jacob

is conducting

Burke

survive. Without

franc.

impressed by
foreign trade.

greatly
of

trend

FOREST
B;

stake

are

■

($10 Par Value)

millions of stockhold¬

have

which

have

in export
millions

corpora¬

considerable

trade.
whose

Price $34 per

There are
companies

dependent, either directly

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

This is not

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

buy,

any

dealers in securities and in which the prospectus may

of such

Merrill Lynch, Pierce,

Blyth & Co., Inc.

164,604 Shares

legally be distributed.

Pacific Finance Corporation

Incorporated

Common Stock
($10

par

Baker, Weeks & Co.

G. II. Walker & Co.

Bache & Co.

Johnston, Lemon & Co,

Crowell, Weedon & Co.

Coffin & Burr
•=•

William R. Staats & Co.

Shuman, Agnew & Co.

•

Schoellkopf, Ilutton & Pomeroy, Inc.

value)

Fenner & Beane
Shields & Company

Hornblower & Weeks

J. M. Dain & Company

Bateman, Eichler & Co.

Incorporated

Ilenry Ilerrman & Co.

Roney & Co,.

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

Weeden & Co.

distributed.

Hooker & Fay

dealers in securities and in

which the prospectus may legally be

Nautnan, McFawn & Co.

Parrish & Co.

Schmidt, Poole, Roberts & Parke

Stern Brothers & Cc.

J. Barth & Co.

Cooley & Company

Kenower, MacArthur & Co.

Straus, Blosser & McDowell

Hornblower & Weeks

26,1957.

Putfiam & Co.
*

Wm. J. Mericka & Co., Inc.
Saunders, Stiver & Ccw

Wagenseller & Durst, Inc.

Woodard-Flwood & Company
June 27, 1957.

June

Farwell, Chapman & Cc.
'

Incorporated

Peters, Writer & Christensen, Inc.

Blyth & Co., Inc.

John C. Legg & Company

J. J. B. Milliard & Son

Irving Lundborg & Co.
Wm. C.

Halle & Stieglitz

Granbery, Marache & Co.

Davis, Skaggs & Co.

Price $39.50 per

Boettcher and Company

Hill Richards & Co.

Elworthy & Co.

The Commercial and Financial Chronicle

Thursday. June 27, 1957

(2984)

production

record

better the

Recommends Creation of "Industrial

of 1955 for the entire year.
if

THE MARKET... AND YOU
By WALLACE

Stocks
i

c a

swayed under techthis

considerations

week, including a rally after a
of

decline

handful

ses¬

Profits

by an increase in
prices, possibly to
be made next month, plus the

four-store

the

over

fact that benefits from

rebounding after

the

purchase of stock in The Fair

timing

such

was

that the market

prove

seldom goes one way

for any
great length of time without
some temporary reversal.
#

❖

has

happened

occa¬

spectators

not

sion before when the

out

maintain

acceptances, to be sold

was

troubled,

listings

foreign

least

momentary,

in the case of Shell

for

calls

Transport,

Inflation Versus Bonds

;

!•!

;

The

ness

Machines

"Industrial

pany

capital,

to-1,

ratio

2'%-

manufacturing

obtain

the

sion
b

capital

their

and

;

expan-

u s

companies
funds required

sses,

wh i

ten

have been
for

of experience

in
products
which
accepted by the public

years

least

five

have

and

years,

government agency guarantees to
the extent of 80% or 90% of such

contracts

have not been

qualified

available

the

Federal

compa¬

sue

Industrial Acceptances for the

these
nies

the

over

covered; also would be

certification

upon

Board

Reserve

amount of the

last two years

by
is¬

government agency

guarantees."
Riskless Credits

situation, is

After

mended

reco m

of these banking facilities are
in the nature of "riskless" credits.

President of

"If

times-earn¬

ica Corpora¬

they

that

were

"Many

grow," Mr. Palitz
a would-be 'giant'

future

may

expand and

stated.
the

was

of the
permitted

prevented

growth by reason of lack
banking accommodations, and
banks cannot be blamed as they

from

take

must
who

give them their deposits, or
business," he

the wherewith to do

added.

Thus,

method of financing the

companies is needed and
of

creation

Acceptance"

"Industrial

appears

the

tool with which to solve the

of tight money,

problem

clared.,

he de¬

■

the
issue
recovered
rather
profit rate through the full
change's Monthly Investment
year
were
somewhat dour. Plan which have been com¬ easily from the weight of its
recent sizable financing
For one, toward the end of
piled at varying times over
the year, Chrysler will bump
through rights. Even the
the last couple of years show
studies of such blue chips as
into what is expected to be
remarkably little change in IBM and General Electric
hot competition from General the preference for top names
make the point that these is¬
Motors.
only.
#
«!
#
sues are not exactly cheap at

be issued by any
industrial enterprise

ceptance

can

qualified

•

has

been

existence

for

and the

ratio of at least 3-to-l

for

banks

and

lot

today
things,"

are

Mr.

blamed
Palitz

concluded, "but they can only op¬
erate
with
the
tools they
have
available

like all enterprises,

and

new

tools must be created to take

care

ever

there is

situations and wher¬

new

problem

problem, that

new

solved

must

rather

than fought."

Southern California
underwriters headed
& Co. Inc. is
offering today (June 27) subject
to clearance by the SEC, $35,000,A group of

Stuart

Ilalsey,

000

California

Southern

Gas

Co.

first mortgage bonds, series
1983

(5ft%) at

The

interest.

accrued

was

C, due
price of 101.807%
group

awarded the bonds on its bid

of 100.66%.
<

Proceeds

the

from

sale

the

applied to the com¬
pany's construction and expansion
bonds will be

program.
'< Southern
an

California Gas- Co. is

operating

utility I en¬
esti¬

public

gaged in supplying ga3 to an

public and banking con¬

tablished

qualified

Angeles, San Bernardino, Ventura,
Kern, Riverside, Kings,
Tulare,

Board

fidence.
"

should

"They

Federal

Reserve

companies which could issue In¬
dustrial
Acceptances,
and
that
be permitted to

they

"The

population of 5,400,000, in¬
cluding about 90% of the consum¬
ers in the City of Los Angeles.
It
also serves in the counties of Los

management and character of the
business is such that it has es¬

the

industrial

smaller

and

commercial enterprises," he added.

and

defining his suggestion Mr.
Palitz stated "an Industrial Ac¬
In

which

structure

Gas Co. Bonds Offered

smaller

new

move

Problem

Solve Tight Money

the

out

bank¬

customers

of the

care

would relieve the
of about $5
billion or more, thus producing
banking facilities for the middle-

com¬

one time and
the
cooperation

banks
to

middle-size

taken

are

channels

current

ing, the
banking

size

industrial giants of today

small

panies
due

and

machinery

producing
equipment.
come

facilities

these
the

Palitz

Clarence

tion, pioneer banking specialists
in
installment financing
of in¬

"The

Palitz asserted that

all

P a..l i t z,

were

outlining other phases of

his plan, Mr.

Clarence

ings and yield bases has never at least 20 years, has a product
The lists of issues preferred
been much of a drawback to which has been accepted by the
ability of this com¬
by the periodic investors who
public for at least ten years, a
to maintain its current use the New York Stock Ex¬ superior market action. And net working capital of $25,000,000,

Steel Bellwethers

market.

open

small and middle-sized

the

over

the

working

Acceptance" which would permit

Credit-Amer¬

some

their fields.

ings, an ultra-conservative ap¬
praisal. However, guesses

tight money

available

Creation

posi¬

long-term growth pros¬
d o u b 1 e-barrelled statistical pects for the basic companies,
recovery buoyed some of the
measured against the constant
work. Shell Transport on the
harder-hit utilities but there
decline in the purchasing
basis of the dividend Ameri¬
was still good representation
power of the dollar, appar¬
can investors receive shows a
in the list of new lows by is¬
ently keeps unlikely any
yield of below 2%. But with
sues in this
group and there
the heavy British withholding major switch by the general
was little following developed
tax used to offset U. S. in¬ public to even the currently
for
them.
The high yields
attractive yields of fixed-in¬
come taxes, it becomes a far
necessary on new financing
come
securities.
That the
healthier 3.25% if the full
have definitely put the senior
bond market shows no signs
credit can be taken. The like¬
issues in direct competition
of ending its repeated slumps
lihood of heavy foreign taxes
with the common stocks.
to new lows is an additional
being trimmed for these large
deterrent not entirely hidden
What's Ahead for Chrysler?
international operations also
in market considerations.
Auto shares showed little enters into the picture.
While declines in the bond
in the way of sustained buoy¬
❖
❖
❖
market, consequently, have
ancy and even Chrysler,
Where valid reasons might
reached
proportions of 10where fat half year earnings
be made for switching to the
15%, the stock averages have
are anticipated, was unable to
equal, or higher, yields avail¬ shown far milder setbacks
muster any action of conse¬
able in the bond market, the even at their worst recent
quence; Proj ections of antici¬ fact seems to be that interest
standings.
pated $10-plus in half year still centers on common
earnings to the full year stocks and on the same top
The high relative statistical
would leave this issue selling
companies that dominate
at less than four-times earn¬
price of International Busi¬
.The,

financing specialist prescribes requirements for these obli¬
gations permitting them to be rediscounted by member banks
at lA% le*« than the usual rediscount rate
and, like bankers

its premier

prospects and still in a

domestic tion

function of mak¬
The pioneer capital equipment install¬

because of the

good position at the head of the
many of the market students pack in the long-range uphill
turned their attention to the growth in steel use.

outlook

which,

as being
line with present

market
»*>

generate any appre¬

rally

merely

good

•»j

ciable volume and the

the market worthwhile.

spate of selling,
failed to

wiped out companies to benefit from the
the large road building plans. The
stock is considered by many

the differential that made

banks from the improper

remove

ment

tag of $25, the

market had all but

Volume Light
In

firms and to

ing capital term loans.

the ex¬

ini¬ pansion and modernization
tial purchase of some 301,300 programs of recent years are
shares of The Fair now held now starting to make their ef¬
chain at

acceptances" to
capital financing problems of small and middle-sized

solve the

It left cloudy

row.

Mr. Palitz proposes the issuance of "industrial

basic steel

fect on earnings.
by Detroit's Kresge Founda¬
U. S. Steel, offering a yield
whether or not the list had tion giving Montgomery
around an 80% interest ini¬ of around 4V£%, is a leader
been corrected to bring it in
in all lines of ferrous work
line with the ragged money tially. The plan is to offer the
and, in addition, owns one of
same price to minority hold¬
market, or whether more re¬
the
nation's largest cement
ers but, in the meanwhile, the
action was the order.

sions in

Acceptances" to Finance Small Business

expected to be

bolstered

STREETE

take

are

issue obli¬

mated

Imperial and Santa Bar¬

Fresno,

bara, all in the State

of California.

Duquesne Light Stock
Share

recent prices, but still recom¬
Chrysler's successful snapgations payable to themselves, or
Steels
back
from last year's
issues, while not mend that they have a place bearer, for the stated amounts,
dol¬
Offered at $34 a
drums was largely at the ex¬ backed currently by any in
any
portfolio aimed „ at payable periodically over a per
riod
of
three
years
in
such
pense of General Motors. But glowing reports, nevertheless more than a few months in amounts as the Federal Reserve % An underwriting group headed
by Bfyth & Co., Inc. and Merrill
GM next year will be cele¬ were in. occasional demand the future.
Banks may approve." These obli¬
Lynch, Pierce, Fenner & Beane,
brating its golden anniversary and had plenty of followers.
As far as yields on current gations, Mr. Palitz said, would be
acceptable by the member banks today (June 27) is publicly offer¬
and undoubtedly will offer As a result the bellwethers,
payments are concerned, the and would be rediscountable at ing an issue of 265,000 shares of
drastically • restyled models, such as U. S. Steel and Beth¬
the local Federal Reserve Bank
inevitable lists of "candidates
Duquesne Light Co. common stock
backed by formidable sales
at
V\ % less than the usual re¬
lehem, have been able to hold for dividend increases" are discount - rate, and such sums (par $10) at $34 per share. The
promotion for the celebration
their ground well after their
would
not
be
included
in
the group won award of the issue yes¬
run. In
still around and invariably
short, the enthusiasm
category of general commercial
terday
(June 26)
on
a bid of
initial leadership on the reac¬
shown during recent years in
run to two dozen or better, in¬
and industrial loans of the bank.
,

Chrysler's
resurge

other is all but absent
every

year

tion.

cur¬

rently.

nies. U. S. Steel

Even

their

most

The recent
some

half

The Fair at
stocks
was
a

were

champions concede that slack

uphill sprint of operations will continue in all
dozen

points by

time when store
in

little demand

finally revealed

due to

plan for Montgomery Ward

probability through the
mer.

But the

vigorous,
bound

sum¬

expectation of

fourth-quarter,
held

them in

even

ardent
on

Merger Sprint

the "name"

cluding

re¬

likely to put

position to try to

some

of these

compa¬
appears

lists.

And

Palitz

Mr.

Industrial
also

sold

similarly
ances."

the

yield picture changes

sharply when these prospects
materialize.,

effect

"These
should

explained:

Acceptances
on

to
"Term

the

open

market

Bankers
Accept¬
loans, which in

capital loans, should
banks," he added.

are

not be made by

"Such
from
cause

money

the

should be obtained

investment
is

not

market

be¬

bank's function

$32,512 per share.
The

net

proceeds are to go

Standard Shares, Inc., a

holding company, which is
process

becoming

ment company.

held

567,500

outstanding

registered

in the

invest¬

Prior to this sale,
of

the
of

6,600,000
Duquesne

common and 80,000 of such shares
expressed in this
to supply capital."
necessarily at any
are owned by Philadelphia Co., an
"In addition to this particular
time coincide with those- of the
indirect subsidiary .of Standard
category," he said,
"companies
"Chronicle.** They are presented
*.
v—
—
i
which have at least $5,000,000 net - Shares.
as those of the author only.}

[The

article

views

not

Volume

Number 5650

185

Int'l Finance

The Commercial and Financial Chronicle

"Autumn

Corp. Makes First Investment

bond

ized.

Robert
the

private enterprise lends $2 million to Brazilian

Garner.

President of

International Finance

ration,

announced

June

ucts

the

cover

entire

electrical

Corpo- field,
20

Financing Includes Stock Option
IFC's

ment, subject to completion of the

investment

$2 million
necessary legal formalities, for a will be in notes bearing interest
$2 million investment in Siemens at 6%, maturing in 15 years, with
do Brasil Companhia de Electrici- amortization
beginning at the end
dade

for

Brasil

expansion

owned

manufac-

Siemens ' do

operations.
is

Siemens

Western Germany.
To Expand Plant Facilities
'

•

in. Brazil

of the 11th year, to retire the issue
in equal annual amounts by ma-

turity. In addition IFC receives a
15-year option on shares equiva-'
lent to the complete conversion
of its notes, based upon the stock
at

The
corporation's
investment,
together with the equivalent of
$ 8.5 million

and the cruzeiro
present U. S. dollar value.
Protective Covenant
investment

is'

unsecured,

but the contract between Siemens

Brasil

Germany, will

be used to

the

usual

pand the plant

The

notes

facilities and

par

ex¬

IFC

and

will

contain

protective
will

covenants.
redeemable at

at any time.

Disbursement of the IFC invest¬

Siemens do

ment will be in instalments

Brasil

quired

the

for

ge
e

re¬

paying
on

the

lion commitment.

nerating
i pment,

Siemens

q u

tchgear,

Brasil, with head¬
Rio de Janeiro, was

Lit.'

transformers,")
L.

Garner

accesso-

ries for utility and industrial ap-

out

again by the Treasury, by local
governments, and for corporate
capital expenditures.

McClure, Sexton & Co.
Formed in Tampa

Difficult

Once

the

money
as

around.
bad

news

but

not,

for

even more

than at present for current

well

same

This in turn

the

means

TAMPA, Fla.—McClure, Sexton
& Co. has been formed with of¬
fices at 617 Madison Street to act
as dealers in listed and unlisted

bond

market—, securities, municipal -bonds and
opinion, for the mutual funds shares. Officers are

becomes ^operative,;
stock market.

Treasury will need

Some of

the

very

Louis

factors

responsible for the
coming crisis in the bond market

as catch-up
purposes. On will
help the stock market to con¬
account, the Treasury will tinue
rising—in spite of unfavor¬
have to finance the heavy load of
able money conditions and con¬
government commitments usually
trary to history and to popular
made in
the early part of the
expectations, this autumn's rising
fiscal year. On short-term catch¬
demand for money will reflect the
up account, the Treasury will also
continued strength in the economy,
have to clean up the
backlog of which will in turn be reflected in
accounts
payable
it
has
been the
continued strength of the stock
building up since May.
market.
Moreover, I expect the
stock market to continue rising in
Coming Need for More Money
anticipation of the coming change
"Business, too, will need more in
monetary conditions now being
money—first, to finance the re- forecast
by the Byrd Committee's
inventoring
that's
coming
this
investigation.
autumn
at
higher price levels.
"Once this change in monetary
Also, business will need more

to finance capital expen¬
ditures, which are continuing to
rise.

And

they will

continue

conditions

has

become

fact,

expect the stock market and the
bond

market

rise

together

and.

were

WithThittSecs.
.

•

(Specialto-THE Financial Chronicle)

MILWAUKEE, Wis.—Daniel A.
Dineen has become:affiliated with
Thill Securities Corp., 704 North

Broadway.

Harry Berman Opens
SAN

FRANCISCO, Calif.—Har¬

Berman is engaging in

a secu¬

rities business from offices at 260

Kearny Street.

—

from a still higher level for the
so long as labor costs continue
stock market and
a
still lower
increase, as they are scheduled
level for the bond market."
to do again this summer.

With Merrill Lynch
LOS

Fisher,
Gerrie

Form Stanford Inv.

.
_

Siemens, consisting of Siemens
&

Halske

and

A. G.

Siemens-

Schuckertwerke A.G., is the largest
industrial enterprise in
Western Germany and one of the

ANGELES, Calif.—John L.
David L. Parmelee and
P.

affiliated

Putnam
*

with

have

become

Merrill

ernment

themselves

pletion of the expansion program,
W^1 represent a total investment
of

the

equivalent

over

million.
A

Siemens prod-

signed

agreement
Mr. Helmtst

Kerr-McGee CHI Industries,

i, 1977

With Common Stock Purchase Warrants Attached
purchase 5 shares of the
stocl{ for each $1,000 debenture,
share from April 1, 1958 to June 30, 1964.

Warrants entitle holders to

Economist

predicts autumn will witness combination of political
and monetary crisis, with bond market even more demoralized
money..

Fund Debentures, due June

5Vi% Sinking

by
Rising Stock Market, Says Eliot Janeway

Company's
at

$80 per

common

Sees both government and business

needing more
Predicts continually rising stock market, with bond

now.

Inc.

$20,000,000

Garner.

Bonds Decline to Continiie, Accompanied

than

securities. The

•

memorandum

was

sell nor a solicitation of an offer to buy these
offer is made only by the Prospectus.

This announcement is neither an offer to

$16

largest' in Europe. The German Spiecker, a senior executive of
plants, which employ about 150*,- Siemens of Germany, by Dr. G.
000 people, last year did a gross Probst
and Mr.
G. Knipfer of
volume of business equivalent to Siemens do Brasil, and by Mr.
about $620 million.

market recovery pursuant to

political

pressure,

Price 100% and Accrued Interest

following later.

Congress is going to take control ginning of a political chain reac¬
policy away from the tion what will dominate the U. S.
present monetary authorities, very business trend through the re¬
possibly by legislation designed to mainder of 1957 and on into 1958.
put the Fed- The investigation itself will not
e r a 1 Reserve
last very long—not as long as the
Board
under present session of Congress. But
the control of during the next few weeks it will
the
Treasury, sharpen the issue of monetary
Eliot Janeway, management
by challenging the
President of policies not only of the Treasury
of monetary

■

also

Janeway Pub-

but

1 is h i

Board.

and

Research Corp.

and
of

publisher
Janeway's

Trend Anal¬

ysis and Appli ¬
cations

Eliot Janeway

Bankers'

the

Association

the

Federal

220,000

Common Stock
Price

Reserve

$70.75

per

Secretary Humphrey will

have to grin and bear it until the

Congressional session ends, which
at the

won't be until late August

earliest.

obtained in any State only from such of the several Underundersigned, as may lawfully offer these securities in such State.

Copies of the Prospectus may be

"Meanwhile the bond market is

writers, including the

being demoralized again and be¬

ices, told the fore the end of the year, it will
California be even more so. But the Byrd
Group

Investment

Serv¬

Committee
won't

even

autumn

won't

try—to

crisis

the

able —and

head

off

Lehman Brothers

Straus, Blosser

McDowell

Senate.

By
America, Santa Barbara, Calif.,
on June 24.
The first step in this that
time, Secretary Humphrey
direction, said Mr. Janeway, is and Congress will have gone home.
being taken right now — through And Secretary-Designate Ander¬
the Senate Finance Committee's son isn't scheduled to come up for
new investigation
of money con¬ confirmation until January. Thus,
ditions and monetary policy.
He as matters stand now, a combina¬
went on to say, as follows:
tion of political crisis and mone¬
tary crisis is building up for this
The Byrd Committee Challenge
autumn, when Secretary
Hum¬
"This Senate Committee—headed phrey has left the Federal Reserve
by Senator Byrd—is only the be¬ Board to face the music alone.

;

(Special to The Financial Chronicle)

plication as well as telephone
equipment. This will be the first
integrated plant for manufacture
of such a broad range of heavy
electrical
apparatus
in
Brazil,
Construction of the new plant is
now under way with initial protransformers, swi tchgear and teleduction starting at the beginning phone equipment,
of 1958, and completion scheduled
Siemens do Brasil, upon comin three years.

for¬

merly officers of Stevens, White
& McClure;, Inc.

into the money supply. Both gov¬
and
business will find

McClure; - President;
Sexton^ Vice-President;
Ward* Secre¬

Miss Dorothy

tary and Treasurer. AH

rise

"Meanwhile, this summer's wage
price increases will be eating

Louis M.

current

money

Lynch,
WASHINGTON, D. C.—Stanford Pierce, Fenner & Beane, 523 West
automatically needing Investment Consultants Corp. has Sixth Street.
outlet for the parent companies. more money to support the same
been formed with offices at 1346
In recent years it has greatly ex- level of activity, as costs spiral
v Hildebrand Co. Adds
Connecticut Avenue, «Northwest,
panded the scope of its operations upwards again. Inventory liquida¬
(Special to The Financial Chronicle)
;
to include the distribution of vari- tion always frees cash and lending to engage in a securities business. >
SANTA ROSA, Calif.—Mary E.
ous electrical products of other power. It did earlier this year— Officers are George W. Stanford,
Long, Carrol L.^ Ornbaun and
Brazilian companies.
r >
but only temporarily. As fast as President; Robert L. Ramey, Exec¬
Robert L. Rawles have joined the
Manufacturing operations were
cash and lending power was built utive Vice-President and Treas¬ staff of Hildebrand &
Co., 4000
started several years ago at a
,
plant; near Sao Paulo, producing up in the banks, it was siphoned urer; and K. H. Plough, Secretary. Montgomery Drive.
formed in 1905 as a Brazilian sales

Robert

even

demoral¬

and

quarters

large motors
and

Siemens

undisbursed portion of the $2 mil¬

electric

swi

with

customary commitment fee

manufacture
of

its

par

IFC's

being invested
by Siehiens of

business

money

ited supply shrinks still further,
"The new enlarged Budget is
one of several reasons
why this is
so.

that

the corporation has reached agree¬

turing

see

still

Germany. Financing to consist of 6%
maturing in 15 years, in addition to a 15-yr. share option.

market

though it may be
"This means that, come autumn,
to believe
now, the demand for both
business
and
government
money will rise sharply before the
will be needing more cash than
year ends while the already lim¬
ever
when
there
is
less
of
it

affiliate of Siemens of
notes

will

tighter than it already is and the

Institution set up by 49 governments to make profit-sharing
investments in

(2985)

Blyth & Co., Inc.
Larard Freres & Co.

Eastman Dillon, Union Securities &. Co.
Merrill Lynch, Pierce, Fenner & Beane

Stone &. Webster Securities Corporation

June 25, 1957.

Goldman, Sachs & Co.

Bear, Stearns & Co.

Smith, Barney & Co.

White, Weld
A. G. Becker & Co.
Incorporated

Co.

Thursday, June 27, 1957

(2986)

been

has

John
A.
Stanton
was
elected Chairman of the Board of the
-wtyy
President of the Bank of Babylon,: First National.' -/Vv;
Mayor of
Miami
Randall
N.
Babylon, N. Y.'v f 1
'
'

structure.
As owner, it
able to enlarge ancjr re¬

38-story
«

Chronicle

The Commercial and Financial

in the building for
and ; effi¬
ciency, while insuring that room
will be available for anticipated
locate its space

News About Banks
CONSOLIDATIONS
NEW BRANCHES

title The First Trust

bodies

and

ex¬

effective
Com¬

further evidence of the communi¬

under

ty's continual growth.

Trust

Y.,

the ' local

represented

governmental

pressed official satisfaction of this

Bank

charter of the latter bank and new

on all
the two

Wall

passageways to 23
common
floors, has

Christmas

'.."

•

...

Bank, Canas-

First

Wellsville,

pany,

opening of

the

including

Broad,

CAPITALIZATIONS

with

•;

merged

Y.,

eraga,

June

remodeling

Extensive

Canaseraga State

growth.

future

Bankers

and

OFFICERS, ETC.

NEW

REVISED

.,7/

v,,

greater-' convenience

Company

supervisory
by

authorities
Mr. T.v A.

represented

were

Flanigan, Chairman of the Board.
Joseph A. Corrado began his
banking career in 1928 with the
Banca Commerciale Italiana
New York. He joined
Manufacturers Trust Company in

F. McGinness and Don¬

Arthur

Platten, former Assistant
Vice-Presidents, have been elected
Vice-Presidents of Chemical Corn

ald

Lanford, Vice-President and Man¬
Allegany County.
tied
p '■>
■■■
p)pi ager of the Federal Reserve Bank
together and given the
Albert Van Dyke, Sr., former of Atlanta, Jacksonville Branch,
bank the one-piece layout it long >
Cashier and Director of the Na-; and Mr. J. V. Chapman, Deputy
has sought. Air conditioning has
Commissioner of Banking, State
t ion a I Bank of Liberty, New York,
been installed throughout more
died on June 20 at the age of 66. of Florida.
than
half
the
newly
acquired
ry;;v;.\if77;';; if
if
Also attending the ceremonies
building,
including
the
165,000
Directors of the Fidelity Union were representatives of the gen¬
square
feet (seven - fLoors plus
eral contractors, Frank J. Rooney,
basements) being uti 1 ized by. Trust. Company of Newark, N. J.,"
elected
on
June
19 Walter
C..' Inc. of Miamiand Turner Con¬
Morgan's.
.»
1 .
struction Company of New York,
Wulff as a Vice-President.
The
change
has enabled thethe
Mr.
project.
Wulff, formerly a Second co-venturers ' for
bank to vacate two floors it had.
Vice-President, is in charge of the Architects for the building are the
been renting at 120 Wall Street,
Miami
firm
of
bank's offices in Irvington, N. J.
Weed,
Russell,;
near the East River.
The employ-;
William F. Greenley, Jr., was Johnson Associates.
ees' cafeteria and the dividend de¬
Miami's
newest
commercial
promoted to Second Vice-Presi¬
partment—which writes and mails dent from Assistant Secretary- structure will be 17 stories high,
some 2 Vz million checks to stock¬
Treasurer.
containing a total of 450,000 square
holders of client companies each
feet.
The bank will occupy the

year
there

buildings

Berkeley
Square
branch at No. 17 Bruton Street.
The branch is the bank's second
its

dedicated

branch in London.

who has been
National City for 33

Peter A. J. James,

First

with

is the manager.

years,

;

The

of Joseph A.

appointment

Bruton as

Corraao and William H.

Assistant Vice-Presidents of Man¬

is announced

1941

C. Platten

McGinness, Jr. Donald

York, it whs
H.„ Helm,

Exchange Bank, New
announced

of the bank's

members

both

are

1947 and

building

Assistant Secretary in 1950.

National City
on June 24,

York

New

proposal to increase the capi¬
Bank by the sale

the

tal funds of the

2,000,000 additional shares of
capital stock was approved by
a record vote. A total of 8,353,724
or 83.5%
of the 10,000,000 shares
outstanding were voted in favor
of the proposal with only 82,080

its

opposed. By this action the num¬
ber of shares, of $20 par value,
will

the

12,000,000.«
Chairman of
presided at the'
to

increased

C. Sheperd,

Howard

Board,

Hatfield,

Bank

first three floors

of approximate¬

feet each and the
was; other 14 floors of tower space will:

with: ly 40,000

Pa.,

square

leased

p:p:y-:'PUp{

tenants.

"the Company, Norristown, Pa., under
founder the charter of Montgomery Nor¬

*V:r

Pierpont Morgan approved the
design of the building prior to his
death in 1913, his stated intention

ristown Bank and Trust Company

the

The

Bank

that

announced

meeting

Cali¬

directors,

bank's

Portland,

advanced

Schrieber,
Assistant

the

office

Ore.

Board

fornia, N. A., Sail Francisco, Calif.

under the title "Montgomery

and

County
Bank
and
Trust Com¬
enough room for pany," effective as of the close of
any conceivable future expansion business May 17, 1957..
of his firm. But 23 Wall was out¬ ." /* i,'. ."!;-'V,*'. 7." -f 1 'y. *'f
-f

provide

was

Elliott McAllister, Chairman of

When

1914.

Mr. Mc¬ after having been affiliated with
located at the 46th the
Chemical
Bank
and
Trust
Street and Madison, Avenue Of¬ Company,
New York, and with
fice and Mr. Platten at the 100- the Union Trust Company, Cleve¬
Park Avenue Office,
land, Ohio. He was made an As¬
if
if
if
sistant
Secretary
in the bank's
International Banking Depart¬
At a special'meeting of share¬
Bank

Hatfield,

known

long

—

Corner"—in

Man¬
ufacturers Trust Company in 1936
William H. Bruton joined

Ginness being

holders of The First

Division,

Metropolitan

Interna¬

assistant
Credit division head in

McGinness and Platten

Messrs.

Broad.

The Penn Valley National

Working-space problems have common stock of $300,000,
He plagued the Morgan bank virtual¬ merged with and into Montgom¬
Letter
of ly since completion of its main ery Norristown 'Bank and Trust

made

was

been moved from

have

—

Department.

Harold

Chairman.

the

clerk

Banking

tional

Agency

Company, New
by Horace C.

Trust

ufacturers
York

Cashier

Assistant

James

Vice-President.

vet¬

of
31
almost at once.
Named
The
Peoples Bank of Dayton,! eran
years
service,
Mr.
U. S. purchasing agent for Eng¬ Dayton, Ohio, has changed its title
Schrieber is
Operations Officer.
land and France in the early days to The Peoples Bank and Trust
Appointed
Assistant
Cashiers
ment in 1952.
of World War I, Morgan's had to
were:
Robert L. Cox, Instalment
Company effective May 21.
if '
if
if
■
Both
men
continue their
as¬
increase its staff greatly and rent
Credit Loan Department; Marvin
signments with the International outside space to do the work,
f *
Lincoln
National
Bank
anil Crowe, Staff Training Director;
Banking Department at the bank's
It never pulled back within the Trust Company of Fort Wayne is Leonard C. Halford,
Purchasing
main office, 55 Broad Street.
and
Robert
J.
Payne,
original walls.
After the war, issuing to the holders of its out¬ Agent;
standing capital stock rights to Branch Operations Supervisor.
growth continued
as
the firm
The New York. Trust Company,
Ernest
E.
Stewart,
Assistant
25,000 additional
played an active role in financing subscribe for
New York, announced the formal
the build-up of industry at home shares at the rate of one share of Manager of the Auditing Depart¬
opening on June 24 of a sixth and reconstruction abroad.- More new stock for each four shares ment, was elected Assistant Audibranch office
on
the northwest
V.VXi;
recently, since its incorporation as held of record on June 18. The tor.
corner of Madison Avenue at 59th
Elliott
McAllister > also
an¬
a bank and trust company in 1940,
right to subscribe, evidenced by
Street.
nounced the appointment of the
transferable
subscription
war¬
steady expansion lias put increas¬
following to the executive staff
J Mr. Hulbert S. Aldrich, Presi¬ ing strain on existing facilities rants, will expire on July 9.
dent of The New York Trust Co.
of the bank's new Santa Rosa of¬
and led to the major relocation
A 20% stock dividend will be
said:
fice.
,77•:
program just concluded.
paid on the new stock and the
grown

•

meeting.
offered

$60

shareholders
of

additional

The

per

will

"The

share to all
rata basis
for each five

pro

new

one

-.J

June 24.
Arrangements have been made
with investment bankers headed

held,

record

by The First Boston
to

all

purchase

Corporation,,
unsubscribed

shares at the subscription

$60

price of

share.

per

and

$80,000,000

these

changes

With

surplus.

to
the

capital of

the

bank will be increased from $200,-

surplus from $300,000,000 to $380,000.000. With undivided profits of

$73,000,000, total
will be approxi¬
$693,000,000.
This total

approximately
capital funds
mately
tal

either the capi¬

include

not

does

funds

Bank

City

Trust Company, of

$33,000,000,

approximately

unallocated

the

Farmers

of the bank of more than

reserves

$100,000,000.

dividends aggregat¬
ing 75 cents per share were de¬
clared by the bank's Board of Di¬
rectors on May 21, payable Aug.
Quarterly

to shareholders of record

1957

July

dividend rate per
to

per annum.

tion

increases the
share from $2.80
It is the inten¬

This

1957.

Board

the

Directors,

subject to future earnings, to con¬
dividends

tinue
the

cilities,

was

increased

the $3 rate on

of shares.

number

covering subscription
rights will be issued and mailed
June

ord

terminate
before

shareholders

June

new

West

End

June

tional

rec¬

rights

will

exercised

not

July 22.
if

The

24.

town

banking
of

City

office

London

was

the

Bank

in the
opened

First

New

Na¬

York

con¬

bank's services.

and

the

for

demands

increased

the

branch

into

scale

large

offices

department of the Guaranty
Trust Company, New York, died

need

new

creasing

of clients.
total of

"And

had

all

nounced by J.

in order to
banking needs.

ex¬

the

meet
specific
In this sixth

Co.

its

York,

under

the

The week-end

roof.

wind-up of

par

value of $5
$604,995
consisting

the

all

saw

United

the

War

renter

outside

Morgan's
substantial

space

Street, still the bank's
headquarters. Last year it paved
for casting off its tenant

by acquiring the adjoining

Mr. Zieger

title

renting quarters scat¬
floors

nounced

and

the

member

Solicitor, it was an¬
George C. Johnson,

President.

Mr. Anzalone

vacated

that

assumes

through

;

the

Mr.
staff

Anzalone
as

joined the Dime
attorney in October

attained

it became

1955.

officer

rank

named Assistant So¬

years

banking

•

(

7,7'/,

the Berkeley of¬
of California in

...

Ken

Keeney

St.

will be, Assistant

several years,
Supervisor in the
Cashier's Department at head ofpast

permanent quarters are well un¬
der way for
the erection of. a
modern two story building at 4th

-been
Union

and

Streets, and it is expected
new office will be com¬

that the

June 17.

pleted early

next year.
if

Calif., and the

Angeles,

rommercfal

»nd

Bank of

Norwalk

Savings

Bank,

approved by
shareholders of tne two banks

the

The Columbia National

Merger of California Ba-k, Los

Norwalk, Calif.,
if

will

for business July 1 in tem¬
porary
quarters at 724 Fourth
Street. Construction plans for the

joined the trust com¬

office

newbanking

The
open

Louis

fice.

St. Louis, Mo., it
on

the

fnr

served

and

became

its
common capital stock from $600,000 to $750,000 by a stock divi¬
dend effective June
12.
(7,500
shares, par value $100.)

was

effective

June 21.

Frank L.

Kansas

City,

Mo.

increased

The announcement was

fornia

Ground

was

building

Fla.,

Plaza

Bank

located

son,

Miami,

the

in DuPont

Mr.

^'
President

and

simple "ceremonies

and

the

licitor of The Dimes Savings Bank ^official ground breaking was- per¬
in February 1956.
> formed
by
Comer* J.--Kimball,

the

Bank

California.
merger,

A. O.

Siver-

Executive Vice-Pres:r1ent of
Norwalk
Commercial
and

Savings Bank, and

downtown Miami.

Earl B. Myer,

Vice-President, became Vice-Pres¬

Ralph W.- Crum,
of the bank, presided at the brief
-

southern
With

broken for the new

National

First

made by

King, President cf Cali¬
Bank.
The new office is

the 61st office of California

idents
*

was

fice of The Bank

time.

the office

retirement

joined the Bank of
Berkeley soon after it was found¬
ed and was serving as Comptroller

1930,-and

last March 29, of John J. Mackey.

1950.

various

Anzalone, a
General

1950, has been appointed head of
the bank's Legal Department with
the

Frank Mero

with the ex¬
ception of two
years
military
service, has been a member of the
former
Real Estate Department since that

legal staff of The Dime Sav-

when he

Broad Street building through
subsidiary company."Morgan's al¬
on

has

the

announced

pany

ines Bank of Brooklyn, N. Y. since

tered

States

was

over

Manager

office.

sup¬

Wall

ready

was

Bank of
also approved

was

bank's

plement its four-story building at
23

Z'eger

Trust Company,

the

Attorney

Deputy

amounts

Officer

has

Hamm

years

title

Eugene

per

day.

same

William

World
a

title

change

principally at that result.
been

Mr.

banking experience including five

named Assistant Real Estate Trust

share, to
of
120,999
shares of the saiYie par value. The

year-long remodel¬
ing and relocation program aimed

has

Grand

new

Trust Co.
'
*

Bank &

First

effective June

consisting of 108,150 shares of

years

P. Morgan

New

centralizing

operations

own

than

with

and

Bank

State

Security

York

New

Cashier.

Incorporated,

June

the

under charter of

solidated
Haven

are:

Assistant
Manager;
and
R.
Keeney,
Assistant

Mero,

its capital stock from $540,-

North America

realized

was

from

the

goal

'/■' State Bank, Ravenna, Mich., con¬

750

create.
it"

* '

bank

new

Manager; Frank A.

Kenneth

State :,i Bank,; has

Haven

Grand

the

Hamm,

Cashier of the bank's new office,

Grand Haven, Mich., and Ravenna

Banking Department to in¬

crease

banking
unit that good planning, able de¬
signing and tasteful decorating
could

June

State

best

very

-,77'

• '

Scott

when
ap-,

was

Bank &

ica, New York, received approval
on

Newberg

.'■V:,.*

Wilbur Lewis, Pres¬

the

obtained

an¬

was

il'.r

Director of the Detroit
Trust Co., Detroit, Mich.

pointed

Trust Company of North Amer¬

largest of our midtown offices, we believe we have
branch,

'''' if

*'! if

William

ident of the bank.

the

pression of this policy of expand¬
ing

Savings

Dime

York,

New

price

standing. The subscription
is $67 per share;'
;

Union

trustee

Bank,

the

James S. Schoff has been elected

in¬
Just

the latest

comes

located

now

cents per

r,'ff

opened

ever

present quarterly rate of 60
share will be maintained
150,000 shares to be out¬

the

Sav¬

of the Bowery

board

that

shares held. It is anticipated

this month.

five
dy¬
namic midtown section of the city.
it

if :

ings Bank, New York, will retire
service at the end of

en¬

branches when the

number

branches

„

from, active

not

to serve

arose,

the

of numbers

has

of 66.

Harris A. Dunn, Vice Chairman
of

branches outside of Manhattan, it
has added

19 at the age

June

of an additional
25,000 shares of capital stock upon
completion of the sale of the' new
stock pro rata on the basis of one
additional
share
for
each
five
the issuance

Vice-President- t>f the

Officers

presently outstanding capital stock

trust

banking

terms

and

:'1';

"* ' *

Joseph D. Dent, who retired last
year

while it has not

1918 and

-7

"Incorporated in 1889 the bank
established its first branch office

status

when

Manhattan

area

the way
if

growth and

5'"-,

■

fa¬

centration of business in the mid-

Since
Warrants

expanded

;-'v

built in recognition of

tremendous

the

major addi¬

bank's

the

the recently

and

$240,000,000

000,000

tion

tered

proceeds of the sale
of the stock, $40,000,000 will be
added to the capital of the bank
the

From

office,

new

of the

California Bank.

Resources of the
were

Norwalk bank
the

in excess of $8,000,000 at

Volume

185

Number

5650

The Commercial and Financial Chronicle

(2987)
Bank has

Royal

Montreal,

than

Bank

Canada

the

succeeding

the

late

Burn.

underwriting group headed
Harriman Ripley & Co., In¬

York

curities

dell

Agency, succeeds Mi*. Grin¬
supervisor of branches in

corporated and The Dominion Se¬

offering

Corporation made public
on June 26 of $39,372,000

the Dominican Republic. Haiti and

debentures of The Municipality of

Puerto

Metropolitan

Rico, with headquarters in
Ciudad Trujillo, D. R. A. A. John¬
son, formerly first assistant agent
with New YTork Agency, has been
named

second

agent,

Mr.

succeed

and

Miller

Cattell,

formerly of the Supervisor's De¬
partment, Calgary, Alberta, be¬
Mrst assistant agent at New

comes

York.
*

G. L.

v*. *

Toronto

due

serially

Principal of and inter¬

the debentures

United

an
>

by,

MiiJer,

to 5.00%.
est

Debentures Marketed

formerly
second
agent with the Royal Bank's New

debentures

July 1, 1958-1977, inclusive, which
are
scaled from a yield of 4.00%

Metropolitan Toronto

Canada,

announces

appointment of H. M. Grindell as
supervisor of branches in Cuba,
J.

stallment

$39,372,000 Issue of

"
*

'The

resources

$950,000,000.

The

are

payable

States funds.

sinking

callable

1972 at

are

fund
and

debentures

after

July 1,

sinking fund is designed to repay
the sinking fund
debentures in
when

due.

The

instalment

(Province .debentures are non-callable.
t
of Ontario, Canada).' The offering
v
Net proceeds from the financing
comprises (a) $34,919,000 of 43/4% .will be
applied in varying amounts
and
4%%
sinking fund deben¬ to schools, waterworks, local im¬

maturing July 1, 1962, 1967,

provements,

1972,

1977,

parks

are

and

firehall

and

equipment

libraries.

The

Municipality of Metropol¬
was incorporated un¬

der

Ontario,

statutes

enacted

1953

which provided for the fed¬
eration of the 13 municipalities

in the Toronto Metropolitan Area
for .certain
financial and
other
purposes.

the

The City of Toronto

Inc.; Lehman

Brothers; Salomon
& Hutzler;
White, Weld &
Co.; Bell, Gouinlock & Company

Bros.

Incorporated; Mils, Spence & Co.
Inc.; Nesbitt, Thomson and Com¬
pany, Inc.; Burns Bros. & Denton,
Inc.; Greenshields & Co. (N. Y.)
Inc.; Harris & Partners Limited,
Inc.; W. C. Pitfield & Co., Inc.;
Dawson, Hannaford Inc.; Equisec
Canada Inc.; Midland Securities
Corporation.

focal point of the area which

tures

1982

disposal,

itan Toronto

initial redemption price
of 103% and accrued interest. The

full

electric
system, park authority,
Administration of Justice, garbage

1987, which

priced to yield from 4.90% to

5.00%. and (b) $4,453,000 4% % in¬

roads

and

covers

miles.

approximately 240
t

Included
are:

the

H. H.

square

The First Boston

group

Corporation;

rities

business

sewage,

Smith, Barney & Co.; Wood, Gun¬

Peachtree

municipal

dy & Co., Inc.; A. E. Ames & Co.

der the

buildings, Canadian National Ex¬

Incorporated;

& Co. He

hibition

Weir, Incorporated; Blyth & Co.,

and

recreation,

(new

building),

hydro¬

Armstrong Opens

ATLANTA,
Ga.
Harold
H.
Armstrong is engaging in a secu¬
—

offering

McLeod,

Young,

from

name

was

to-Dominion

of Allied Securities

'V,;.'

Bank, Toronto, Can.
ts

The directors

;

The

y:j

Chartered

Bank, London, England, and The
Eastern

Bank;

England,

announce

discussions

Limited,

London,

that, following
them,
The

between

Chartered Bank proposes to make
offer to acquire the whole of

the

issued

capital

Eastern Bank Limited
of

The

the basis

£ 9

fully paid stock of
Chartered Bank for every
shares

£10

each

Eastern

Bank

The

The
be

offer

will

conditional

(£5

The

two

paid)

Limited.

expressed

(inter

alia)
acceptance by the holders of
90% of the issued shares of The
Eastern Bank Limited or of such
upon

its

smaller 1 percentage as The
Bank may agree to

tered

The

directors

Char¬

accept,

The
Eastern
Bank Limited intend to
accept the

offer in respect of their

ben¬

own

eficial

shareholdings
and
will
unanimously recommend the

shareholders of The Eastern Bank
Limited

the

same.

New York Stock Exchange

Weekly Firm Changes
;
■

The New York Stock Exchange
has announced the following firm

changes:
Herbert G. Bell and Earle Gaf-

chell,

general partners
Stone & Co., will
limited
partners

den,
come

Hayalso be¬
effective

•Julv- 1.

William

■

partner
•become
*

Irma
from

Goeben,

general

Conning & Co., will
limited partner
July 1.

Newburger will retire

limited partnership

•coe

in
a

Co.

June

30.

in Vei-

With F. I. du Pont
;

;

(Special to The Financial Chronicle)

AKRON, Ohio—John G. Miller
has

joined

du Pont &

the staff of Francis I.

Co., 12 Ea9t Mill Street.

Joins Green, Erb
(Special to The Financial Chronicle)

CLEVELAND, Ohio—Eugene J.
Smith

has become

Green,

Erb

affiliated

Co.,

Inc.,

with

NBC

Building, members of the Midwest
Stock Exchange.

Walston Adds

The
to

Staff

HARMONY of correspondent banking

(Special to The Financial Chronicle)
*

PORTLAND,
Goodwin
staff

has

Oreg.—Robert

been

Walston

added

F.
the

Co., Inc., 901
Southwest Washington Street.

Harmony is important in

any
in teamwork between banks. •

It is the result of

With Bache & Co.

working toward

(Special to The Financial Chronicle)

MILWAUKEE,
Bethke is

now

Wis.

—

Carl

with Bache & Co.,

business relationship—but especially

Service to

•

real person-to-person

understanding—both banks

goal. It shows itself in a smooth-running and
pleasant association that benefits both the banks and their customers.

Why don't

you

a common

talk to the people at Chase Manhattan?

£29 East Wisconsin Avenue.

TERRE

HAUTE,

Enterprises,

Inc.

Cook
conducting a

Ind.

securities business from offices at

are

THE

Credit information

Chase Manhattan Bank

E. M.

Cook,

Vice-President;

and

Leslie, Secretary-Treasurer.

Municipal Bonds

•

Full

orders

foreign services

Safekeeping of securities

Officers

Walter C. Cook, Jr., President:

pick-up

Quick collection of items

Execution of security

—

111 South Seventh Street.

Analyses of investment portfolios

Dealers in Stote and

Form Cook Enterprises

Correspondents

Around-the-clock mail

HEAD OFFICE: 18 Pine Street, N.
-

•

Member federal

Y. 15

Deposit Insurance Corporation

Many personal services

formerly

Limited, has been elected to the
Board of Directors of The Toron¬
r.:..-'

offices

Street, Northwest,

firm

Wilcox, President of Ca¬
Westingh*use
Company

nadian

un¬

Armstrong
an

Corp.

officer

The Commercial and Financial Chronicle

Thursday, June 27, 1957

(2988)

edged market in particular would

Accounting for the Unexpected in
British Securities and Sterling
By PAUL EINZIG

Author-economist Einzig is

The writer

for

securities
to

trend on the
British Government

downward

The

have come
halt towards the middle of
June, and the

appears

general tone
Stock

the

Exchange

as a

steadier

of these offices through

market. Sterl¬

ing,

be-

too,

some¬

c a m e

of economy.

The network

which un¬

employed workers could seek em¬
ployment was built up during the
period of mass unemployment in
the '30s.
The Government has
come

to the conclusion

that, in the

what

almost

even

employment, there is no need (for

firmer,
though it

absence

complete

remained
its

low

Paul

was

the

Einzig

be¬ maintaining nearly as many
parity fices as before the war.

the

lar.

dol-

This

with

im-

of¬

By reducing the number of the
Labor

prospects of Government securi¬ a result of this decision it will
ties was increasing almost daily. become even more difficult politi¬
Even on days when the Stock Ex¬
cally
to
pursue
disinflationary
change as a whole was firm there policies which, in order to be suc¬
was no demand for Government
cessful, would necessarily cause
loans,
and the
financial press some unemployment. It is easy
came, to
refer to the gilt-edged to
imagine the outcry that would
market with increasing frequency arise from a moderate increase
as the "friendless section" of the
in
the
number
of

unemployed

There

was

now

betterment

respect of the main cause of the
weakness of Government issues,
relentless

the

inflation.

-wages

both

its

that the Government has re¬

duced the facilities

effect, would ensure a mod¬
erate
boom
during the coming
•'

politicians,
financial journalists
-

economists,
or business¬

through which

could find alternative em¬
ployment. Even before the de¬
cision, it was politically difficult
they

men—continues to refuse to admit

the

that

Britain
more

inflationary

has

wages,

three

trend

causes:

wages,

and still more wages.

So it must be taken for granted
that

the

spiral will con¬
tinue to rise.
The "plateau" of
prices,
which
Mr.
Macmillan
sought to .achieve when he was
Chancellor of the Exchequer, is
being abandoned right, left and
showed

trade

unions

willingness

any

never

co¬

operate in the effort to halt the
rise in prices. The Governmentcontrolled
are

nationalized
their

that

"self-denial"
an

industries

raising their charges, having

realized

increase

has
of

not

their

months'

prevented
costs.

And

industrial firms which ab¬
from raising their divi¬
dends even though their profits
many

stained

would have justified in paying out
more,
up

have

now

decided to

give

the hopeless attempt to miti¬

gate the greed of their employees
by their example of self-restraint.
It is true, the Government con¬

tinues to pursue a policy of credit
restraint. Its latest effort in that

direction is the discouragement of

long-term financing by banks. By
preventing banks from granting
credits to industrial firms for cap¬
ital expenditure, the Government
may keep down the volume of in¬
vestment, because the capital mar¬
ket is unable to cope with the de¬

mand for funds for that purpose.

But this only means
crease

while

that the in¬

of the output is kept down,
demand continued

consumer

to receive fresh stimulus from the

wages

Government

tolerate
fore
vene

even

feels

increases.

will

have

inflation

impelled

means

tion

underwriting and

ing municipal

distribut¬

bonds exclusively,
in New York,

offices

maintains

Chicago, Boston, Cincinnati, St.
Paul, Los Angeles, Detroit and

Atlanta,

the

latter

opening

1957.

effecting

the

awkwardness of

the initial nego¬

tiation when the participants may
be

well

prepared to provide

reasonably complete or accurate
account
of
their own reserves,

increase.

should

market

for

Without

impor¬

Equally

prospect of a public
the company's stock.

the

tant

repeating

desirable

the

aspects of such a step which were

previously outlined, there can be
added: the prestige value among
the

industry, equipment suppliers,

facilitation

pany;

the

interested

usefully

but

investment

into

frozen

members

family

afforded

ity

the liquid¬

and others;

customers

not

com¬

evaluation

and settlement of estates;

the

cur¬

marketable stock
acquisition of other companies
operations and finances. All of this
and properties (including tax ad¬
work is in the iield of activity of
vantages in such transactions);
investment bankers. There is a
the improvement of credit from
The 12 Federal Land Banks are close parallel in the work which
stock marketability and the en¬
arranging to offer publicly $183,- must be done preparatory to fi¬
larged equity base; and the ability
000,000 of bonds to redeem $135 nancing
and preparatory to
a
to attract young and able execu¬
million of their 3%s, due July combination negotiation. More¬
tives through stock option plans—
15, 1957, repay interim borrow¬ over, combinations can result in
which are becoming far more im¬
ing from commercial banks, and development of a vehicle which
provide funds for lending opera¬ can arrange new financing on a portant than salary as induce¬
ment.
tions, John T. Knox, fiscal agent basis unavailable to its constituent
By relying too completely on
of the Land
Banks, announced parts.
stock financing
in an extended
on
June 24.
The question arises, I am sure,
The
new 'consolidated
bonds as to the dividing line as to size period of expansion, a company
to be offered will consist of two between companies which can ob¬ loses some of the leverage aspects
issues. $60,000,000 of 4%% bonds tain new financing on satisfactory of use of debt, where temporary
due July 15, 1969, and $123,000,- terms and those which cannot. At use of borrowed money creates
000 of 4%% bonds due July 15, this moment, there is no useful an earning asset which can safely

Federal Land Banks

value of

rency

To Offer 2 New Issues

1958. Both issues

will

offered

for

cash, no exchangeprivilege
being given holders of the matur¬
ing 3*14% bonds.

about June 27.

basis for such definition.

No two

different
types
of mining and
different
seams vary in their economic pos¬
sibilities; the industry, outside of
'the leading independent compa¬
nies,' is privately owned and op¬
erating and/financial data there¬
companies

are

fore are scarce;

world's

new

alike;

and the investing

interest in the indus¬

try is not well enough developed
to show a real appetite for any but

make

New

Kohlmeyer Branch

LAKE

CHARLES, La.—Kohl¬
Co.
have
opened
a

branch office in the Weber Build¬

ing

under
M.

the

management

Snider.

Mr.

Snider

Relying too heavily on debt, a

unwelcome
its borrowing
power, which might
be a real
handicap,
and1 can
impair the
value"bf^its equity; if it sought
company

risk,

Exchange and

F. I. Du Pont Admits

mitigation of inflation, not only
through a
reduction in public

The

natural

inclination

July 1st, Thomas A. Lewis company is to borrow money on
spending, but also through the will become a limited
partner in long-term arrangements if there
is a reasonable prospect that the
development of a certain amount Francis I. du Pont &
Co., 1 Wall
of unemployment in the arms in¬
use
of the borrowed funds will
Street, New York City, members
dustries. Owing to the scarcity of
of the New York Stock Exchange. take care of interest costs and re¬
labor in the engineering industry
payment, with something to spare.
as a
The ownership of the business is
whole, the unemployed would
Joins Bache Staff
undisturbed and the benefits of
easily find jobs.
Nevertheless,
(Special to The Financial Chronicle)
there would be a transitional un¬
the expansion are not dispersed.
RALEIGH, N. C. —Marion W.
employment which would mod¬
To a degree this philosophy is
erate consumer demand for some Rogers has been added to the staff
to be warmly recommended if the
time.
The release of a number of Bache & Co., 130 South Salis¬
position and prospects of the busi¬
of young men from the armed bury Street.
ness
eliminate any risk that the
services, too, would mitigate the
debt would cause trouble. Bor¬
scarcity of labor, and this might
William V. Driscoll
rowing can be over done, how¬
lead to a temporary moderation
William V. Driscoll, partner in ever, without consideration of this
in the insatiable appetite of the
Walston & Co., Inc., and a mem¬ risk factor. Financing the growth
trade unions for higher wages.
a
company
—
a
continuous
ber of the New York Stock Ex¬ of
Since the disarmament discus¬
process — should be approached
change, passed away June 15.
sions have now reached a decisive
with careful long-term planning.
The equity base of a company be¬
stage, investors and speculators
George Mitchell Opens
are
comes
all important.
marking time to see which
Borrowing
way they will develop. Should the
BROOKLYN, N. Y. — George power - should be reserved care¬
talks break down, or should the 'Mitchell is conducting a securities fully for emergencies and special
result be disappointing, the Stock business from offices at 294 Web¬ opportunities
for money which
can be raised quickly.
Exchange in general and the gilt- ster Avenue.
On

assume

can

use

to sell additional

stock. Any com¬

overburdened with debt may

pany

business

disadvantage as

well.

varieties of se¬
curities within the basic frame¬
For what it is worth, my own
work of debt and stock. A desir¬
idea is that a 2,000,000 ton deep
able
type
of issue in: some
mine operation is about the low
instances, if the company's stock
point for the type of financial
assistance investment bankers already has a market or one is
could handle and in this size, the being created, is convertible de¬
bentures. Such debt often can be
company would have to
be well
arranged on better terms than
equipped
along the lines pre¬
straight debentures and there is
viously outlined.
the prospect that the debt will be

previously local manager for
on the foreign ex¬
Howard, Weil, Labouisse, Friedchange market in spite of the richs & Co.
complete absence of any improve¬
Forms of Financing
ment in the inflationary position
Oppenheimer Branch
Basically there are two forms
may be explained mainly on the
LIDO BEACH, N. Y.—Oppen¬ of financing, borrowing and sell¬
ground of the increase in disarm¬
&
Co.
has
ament hopes.
opened
a ing stock. There are two markets
An international heimer
agreement that would enable the branch office in the Hotel Lido —public and private. In actual fi¬
Government to make really sub¬ under the management of Samuel nancing everything is not as black
stantial cuts in military expen¬ T. Cohn.
and white as this but these guid¬
diture would lead to a noteworthy
ing patterns prevail.
was

the

contribution

net

owner's profits.

There are many

the best coal equities and credits.

Minturn

the Stock

difficulties

rather
character¬
istically rugged nature of the coal
operator, the reluctance of a man¬
agement or an owner to share
responsibilities,
authority
and
ownership, the fact that initially,
combination
might be more a
sharing of problems than realiz¬
ing immediate benefits, and the
cluding

not

meyer

Talks

several

combinations of smaller units, in¬

dis¬

Attributes Change to Disarmament

The improvement on

$,,

which has been made by Advantages of Shared Ownership
and more efficient or¬
The sharing of the ownership
ganizations in reducing costs and of a company may be something
making a good profit at extremely that an owner-manager group
competitive prices.
may face reluctantly. There are
Robert
J.
Haley
has
been
advantages, however, which are
named a sales representative of
Should Combine Small Firms
considerable, especially in a
John Nuveen & Co. in their New
The solution
to the
problem
growth industry, where a5. new
York office, 40 Wall Street, C. W.
which has been advanced by in¬ dollar can have a Teal chance to
Laing,. Chicago, President, an¬ dustry spokesmen is combination,
produce earnings. Although the
nounced. • He
had been
senior
to obtain the substance, manage¬
existing owners may not get all
analyst, Committee on Valuation
ment, facilities and reserves of a of the benefits, earnings appli¬
of
Securities
of
the
National
larger
enterprise. There
are cable to their stock holdings

inter¬

of effective

t *.

n *

the larger

be¬

inflationary measures.

wages

The

center.

The

■*;

progress

Haley With

Competitive plundering of the for the Government to face the
community by trade unions con¬ unpopularity of a rise in unem¬
The., offering will
be " made
tinued unabated.
There'swa&>: no ployment ; Now it has become th^ugT^hfrT" Knox, Fiscal
sign of any willingness on the ■practically a political impossibil¬ Agent, 130 William Street, New
York City, Avjhth the assistance of
part of ^mpioyei-f or of |hej Gov*
ity
Jthe circumstances, the.
erriitf eftTlb make a 'stand against
a
nationwide group of security
saving effected through the clos¬
this inflationary pressure. Indeed
dealers and dealer banks. He will
ing of Labor Exchanges is bound
the majority of commentators —
to prove to be a false economy. announce the offering prices on
whether

Growth and Financing Prospects
Of the Coal Industry

cal

un¬

Exchanges the Government
provement may, it is true, save a few mil¬
all the more unexpected as lion of
pounds of public money.
wave of pessimism about the
But there is another side to it. As

Stock Exchange.

reasonably

all, the Government Association of Insurance Commis¬
has now committed itself more sioners, following Worid lYar II
than ever to the maintenance of service as an AAF troop carrier
overfull employment at alL costs. pilot, -and graduation from FordThis has been done by the recent ham University.
John Nuveen & Co., a 59-year
decision to close down a large
number of Labor Exchanges for old investment banking organiza¬
Worst

reasons

hand,

agreement, through
material and psychologi¬

satisfactory

All Costs

Full Employment At

whole became

sympathy with
the gilt-edged

other

Continued jrom page 5

course.

John Nuveen & Co.

can

market

the

downward

their

R. J.

only attribute this
improvement to the optimistic hopes raised by current dis¬
armament discussions, and believes a breakdown in the
talks would result in a downward resumption of the Stock
Exchange and gilt-edged market.
outlook in his country.

resume

months.

puzzled by the unexpected halt¬

ing of the downward trend of British Government securities/
the firming of sterling and the Stock Exchange, inasmuch as
there has been no change from the pessimistic inflationary

paid off by conversion into stock
prices higher than the stock
would bring at the time of issue.

The

position

decision
ties to

its

lit

financing

new

with

studied

of each company

must
ancf
securi¬
be sold should be made to

considering

great

care,

to the type of

position,

plans

and pros¬

pects, in the light of security mar¬
ket conditions. This is a matter
which must be worked out be¬
the

tween

company

management

investment banker, each

the

and

contributing its skill and knowl¬
edge to reach the final
tion.

not

entered into

have

determina¬
to

matter

lightly.

not

mentioned

bank

loans, purchase money mortgages,
equipment finance loans and other
types of financing which do not
fall in the province of the invest¬
ment

banker.

facilities
in

the

These

the

right

are

all good

industry if used

way.

They

are

all

debt, however, in the sense pre¬
viously discussed.
Private

and

public

placement

requires a brief comment. Private
placement is ordinarily arranged
by

investment banker with an
company,
a
pension

insurance

fund,

family

university, a charitable or
fund or the like. Major

Volume

185

Number 5650

The Commercial and Financial Chronicle

(298S)

investment houses

in close

are

re¬

lationship with such institutional
investors.

Instead

registering

tions

conducted

are

sell

such

securities directly to one or more
of these funds.

The

advantage of this arrange¬

ment

effect

that

the

single

has in

company

outside

who works with it

investor,

confidence

and may

be approached readily if
•there is any need to revise or ex.pand

financing arrangements. A
relationship of this sort can be a
useful thing. The disadvantage is
that

such

Debentures Offered

usually

842

of the

one

branch

cities

has

company

offices located

577

states, and all Cana¬
Y

dian provinces.'

yield 5.07%.
The proceeds will be used to re¬

the

under

Elder

business

100%

duce short-term bank loans which

incurred

FT.

103*4% for those redeemed in the

priced at 99%

are

from

prices

starting July 1, 1967, to

for : those

July 1, 1978.

com¬

pany's established lines of credit

ranging

redeemed

after

South

A sinking fund will

redeem debentures at 100%.

David I. Feinman OpensNEW YORK

year,

WORTH, Texas
is

—

conducting ,a
from

34th

new

Street.

Mr.

previously, with
Corp.

year,

Inv.

demand

Feinman

First

has

been

the

Manhattan

gage

partner in

formed

with, offices

Building

securities

Harry. Bornstein is

the business.

the • firm.

•''•

business.':

veto

regarding further financ¬
ing, limiting management flexi¬
bility. Also, the benefits of a pub¬
not

are

Whether to

to coast,

obtained. |

private or pub¬
lic financing also must be deter¬
mined in each individual case.
I

have

marks

tried .to

growing
coal
to

keep my re¬
practical vein. The

need

the

bituminous

industry for additional funds

expand

prove the

its

use

production
to

economy

reduce

costs

Thanks

is all too apparent. The
industry
should spend between $1*2 and $2
billion over the next five years

for

these

great

this

that

and

purposes

deal of

will

consideration

opments in
from

the

terest

technical

profitable

new

For dramatic evidence of

arising

growth

and

new

forward

are now

phase

thinking

arranging

The

outside

and

can

welcome and
,

helpful.

•

;

assure

out

able

(Special to Tite Financial Chronicl*:)

the

Street.

staff

Inc.,

40
"

transportation

winner

who

city.
with

easy

recreation

for

bread¬

the

commute

and convenient,

reaching schools,

With S. E. Dunn Co.

•

must

the

by: providing his family

And

Pearl

migration possible,

mass

./t How? By providing fast, depend*

WORCESTER, Mass. — Samuel
C. Bean and Willy Nordwind have
&Co.,

in—for it's today's superbly
are raak-

come

ing this

•rT;

added

ahead.

years

(out of the city, that is!). And

ship
-

Robbins

certain to

engineered automobiles that

H. L. Robbins Adds

been

millions

that's where the figures on car owner¬

- •;

;;

Seems just about everybody wants

sincere effort to be

cordial

approximately

cars;

join the ranks in the

financing.

which is to be done in bituminous
coal

U.S.

households in the

millions of families with two

banking field -is
of the useful work

aware

registered

passenger cars

are

cars—with

possibilities

investment

highly

living—

million households). And that means

vantage of their opportunities wil I
of

million

(52

companies which seek to take ad¬
do well to explore the

today's all-

toward suburban

than there

industry is in

way

well, try this statistic for size: There

for

uses

trend

out

money.

The

a mass

devel¬

of coal

usage

mobility of modern motoring,

migration to the suburbs is under

industry's enlarging in¬
research, which might

provide

the

represent

outside money/This gives

new,

come i

im¬

and

efficiency and

operations

means

shopping centers,

areas—near

far. y

"Suburbia, Here We Come!"

(Special to Tin: Financial Chronicle)
v

DETROIT, Mich.

—

Terry N.

Bloss is

now

Dunn

Street.
the

Detroit

connected with S. E.

Bank

Trust

■

Com¬

V'1'1

' y'A:

the

American

attractions of
away

for

Lloyd Fernald

associated

every

space.

with

Lloyd D. Fernald & Co., Inc., 1387
Main Street, members of the Bos¬

leisurely

from the congestion of

within

shopping

home for miles around—

off-street

parking

Suburban cash registers

now

ton Stock Exchange. He was for¬
merly with Jackson Steiner & Co.

our

new

of marketing and changing buy¬

(Special to The Financial Chronicle)

ping

WORCESTER, Mass.—Colin W.
Johnson

now

connected

areas

suburban

with

Gibbs & Co., 507 Main Street.

names

made

member of the

every

single automobile

can prove

the

Also,

50-billion-dollar,

new

multi-lane freeways for the sub¬

new

should markedly stimulate

important

Through the skilled engineering and
manufacturing of the automobile in¬
dustry, this nation each
safer, stronger,
and

year

enjoys

economical

cars.

goal—through research

cooperation with the automobile

industry
better

—

steel

for

strength and

make
still

greater

economy

trucks of

better

safety,

the

cars

today and tomorrow.

National Steel take pride in

the

great contribution of the auto¬

people and

our

well-being of

nation. Because

through three of its

SEVEN

GREAT DIVISIONS

WELDED INTO ONE COMPLETE

STEEL-MAKING STRUCTURE
Great Lakes Steel Corporation

•

Weirton

Steel Company • Stran-Steel Corporation •

Ilanna Iron Ore Company • National Steel

Detroit, Michigan, Weirton Steel

Products Company • The Ilanna Furnace

Weirton, West Virginia, and The

Corporation

Furnace

Hanna

possible want
suburbanites where they live.

Corporation

•

National Alines Corpora tion

i
.

(Special to The Financial Chronicle)

Multi-Car Families Abound/

;: ST.

LOUIS, Mo. —- Walter L:
Boeger is now connected with G.
H.

Walker

Co.,'

503

Street.

Locust

Keeping

with the increase in our
population (it's predicted

pace

suburban

•

and

one

automobile manufacturers.

and

family.

major divisions—Great Lakes Steel

that serve virtually every
community, the proudest

Buffalo, New York—is

supplier of the steel and iron used by

Our constant

41,000-mile Federal Aid network of

National Steel,

another to supply every

G. H. Walker Adds

demands

painfully inadequate.

our

scientifically planned shop¬

in merchantdom vie with

other

mobile to the health and

rooming Suburbia.
In these

shopping,

ing habits under the impact of mush¬

With Gibbs & Co.

With

National's Role

economy—an

today being geared to

economy
ways

for

car"

"the

family,

the

families.

business,

two-car

and

social

by 1975), is the sharp

multi-car ownership per

lush

transfusion

„

rise

urbanite

multi-billion-dollar
.' business volume yearly. It's a golden
ring

that suburban dwellers will total

than 83 million

few. minutes' drive

convenient

plus

SPRINGFIELD, Mass.—Herman
how

for

multi-million-dollar

with

(Special to The Financial Chronicle)

cities—closer to the outdoor life. And

from every

Dillis

charms, too, and the

living

centers

one

round-the-clock

many

Allergic Diseases.

Joins

single homes

With scenic

Vice-President
Foundation

ever-in¬

income bracket.

Webster, Jr., senior
partner of Kidder, Peabody & Co.,
17 Wall Street, New York
City,"
a

and

ments

has been elected

united in

are

making these millions warmly wel¬
come with prodigious housing develop-

E. S. Webster Ejected
Edwin

Americans,

mighty chorus of, "Suburbia, here
come!" And Suburbia, in turn,

pany.
k

wonder

creasing millions,

Company, 500 Griswold
He was previously with

NATIONAL STEEL
Y

;

GRANT BUILDING

CORPORATION
PITTSBURGH, PA.

en¬

principal in
:': *' 3

powers

lic market

was

Investors

also
such investors

certain

Planning

1903

Sam

David

—

HOUSTON, Texas —Investment
Planning Services, Incorporated,

Proctor

Drive.

limited

CITY

Feinman is conducting a securities
business from offices at 225 West

securities

offices

Riverside

Anderson is

-v

revenues

record for the 11th

Proctor Elder Opens

The debentures will be redeem¬
able

operating

new

amounted to
$21,445,518, a
high for the 10th consecutive
up from 1955's $16,877,670.

total of

12 months

The debentures

were

The

amounting to
$114,937,373, compared with $97,133,643
in
1955.
Net
income

largest organizations in the con¬
sumer finance, or small
loan, busi¬
ness.

1956,

consecutive

Household Finance is

An underwriting group headed
jointly by Lee Higginson Corp.,
White, Weld & Co. and William
Blair & Co., on June 25 offered
publicly a new issue of $40,000,000
Household Finance Corp. 5%
sinking fund debentures due 1982.
to

reached

of business.

arrangement

be confining as

can

provide additional 'funds ' for
lending to customers ill the usual
course

•securities with the SEC and offer¬

ing them to the public with an
underwriting syndicate,, negotia¬

Household Finance

?>\iv

The Commercial and Financial Chronicle

(2990)

Wants Effective Tax Action

fiscal

Fiscal Policy Implications
Of Reduced Appropriations
_

;

By ALBERT GAILORD HART*

Professor of Economics, Columbia University

take effect

ommends

economic activity

of three-month forecasting periods.

use

Hart points out

and

sags,

(partly the fruit of easy
money), and the reversal of the
inventory swing.
In the next recession, we are

orders

such

ative

Professor

that

how various factors involved in defense spend¬

vert

fall

unless

date

•

raised
ered

may

needed

avert
u

low¬

mass

o y-

and

in¬

n e m

ment

flation.

But in

today's

world

military in¬

security,
sort of

ulation

ex¬

discretion

almost

ent

prooable.

policy

fiscal

defense

extends

Prof.

ing

Hart

spend-

much

than

m ore

anybody would justify if
that there is

peace

dency for

had

natural ten¬

relaxation of world

any

tensions to reduce Federal appro¬

priations, and for the intermittent
jolts

which

remind

our

danger to increase appropriations.
The

resulting

pen

to conduce

bility

changes

the

opposite.

policy as a whole is
stabilizing influence,
taxation
'

must

take

for

guaged

exert

for

on¬

coming year. Even if we adopt
specific assumption for the out¬

the appropriation proc¬
have to face the fact that

ess, we

much

with

the

are

tions

ordered in
two

fect

defense

equipment
time"—to be

"lead

1957-58, and delivered

five

later.

years

change in

appropria¬

for

pay

long

might

absorb

The

such

ef¬

appro¬

ing decisions of government, in
short, is as tricky as any problem
economic
assume

agrees, will be small.
But the effect on government ex¬

penditure itself is not all that
consider.

When

for such

orders

a|J0Ut
js

appropriations. Foi* what it

worth, my forecast is that the

combined effect of

cut in appro¬

priations and the rapid advance
of military technology will be to
intensify the hoarding up of un¬
obligated authority, and to shift
orders to new models of unusually
long leadrtime—stimulating busi¬

spending on defense-produc¬
tion
facilities, but holding back
business spending on actual pro¬

ness

costs

seems

entering

spending

building

—

the

course

that

arg

since

been

than

events

1950.

have

has

economic

before the

recession

ing the next

remem¬

—

bering that we have no way to
predict accurately either its tim¬
ing or its intensity. In both the
last, two recessions, as can be seen
in the table below, we got
well

largely by

effects

this

account.

sort

appro¬

felt

are

paid out.

authority
fiscal

place

year

orders

the next.

The current

budget, for example,
contemplates that the Defense De¬
partment will enter the 1957-58
year

with

$10.6

billion

unobligated authority and end the
fiscal year with $7.9 billion.
(This

practice,

the

dictum

way,
conflicts
of the
Budget

Message that appropriations "are
enacted

pected

to
to

cover

obligations

incurred

fiscal year," and is

within

tions.)

t'<!
Year and

S '

Quarter—

Taxes

ture

k '■/S'y

■>:

;

Surplus

Expend.
Defense Less Amort
Charted (B + D + F.- -F)
Facilities

>•-

•

;

Period 1: End of postwar inflation
1 947—1st

v 57

56
56

Quarter

2nd Quarter

3rd Quarter

—

4th Quarter

-----

2nd Quarter

3rd Quarter

_______

59
57
56

Quarter

1943—1st

Period Average
Period 2: 1948-49

downswing

1943—4th Quarter
1949—1st

___

Quarter

___

2nd Quarter

v|57

——^ 57

3rd Quarter

—

•

Period Average.

JT".

Period 3: Pre-Korean recovery

4 60

57 4

>' r *

'67

t58

ViiVU

■&;.

460

J??

t- 3

'lp:

■

t h 2

I 59

v.v.

ft:

f— 9 "!?>>

•.

v. :•

4.,-.'.

^4 '4

-■'i\

■

V.-*.

rfv

4.--,.-'

>■•'■ *

•

' h

Period 4: Korean-war open inf lation
1950—3rd Quarter

___

4th Quarter

1951^1 st

>
*

Quarter

•l

fails

the

index of the

control

time

good

tax

deficit

cushion

77 ..4/ 4

44 18
>•;

4.4

89 :y>;; 44>69
t

„-

■

•*

...

—

-4"

4444

>'*-

420

-4

O >4 3

h'it

0
-

•

44-v4'56 44

$ 4; ;.'

:-4>

-^4

it.

out less

government

deficit

by the drop

bulge in

expenditures.

that this

lays,

Period 5: Post-Korean plateau
>83

period
of expanding Marshall Plan, out¬
public
and

works
the

life

ment

direct

after

long

4th

Quarter

fortunate

•...

-•

75
•.

___

•

16 1

14 >

well

opera¬

than

2nd Quarter
3rd

before

Committee, Washing¬

____

■:..{■

Vr- 4:

2
/•.

.•!

/4:44 -4

•

;67

-2

.4 3

•'

•

Quarter

9444

Quarter

2nd Quarter

4th

Period Average

f'}' £

498

44 '4

,:r

"4. $

—

■

ion 4If

,: io3

80
94 4'

89
89

1953—1st

4" 4v

■

•

t
*

*i*

•

4v —9*.

—8

•>

—1

v' 4

—1

:4'

1
1

—l

:4";- 14:4

—1

—5-

in¬

downswing
1953—3rd Quarter
:_________

-98'
-

105

—1

106

—

—1 ,:

—

—8

102

—1

1949)

was

good

luck

•*

CD CO

;

■

—8

1954—1st

Quarter

______________

101

103

—6

102

—11

—1

—2

102

—11

—3

—2

—9

—3

—2

—4

—2

—4

—1

—2

—7

2nd

Quarter

3rd

Quarter

—

Feriod 7: 1954-55 recovery
1954—4th Quarter
1955—1st

Quarter.

—

—3

—

—3

9.8

—3

102

$
t

2
2

—3

Period Average_____

19^5—-4th Quarter
1956—1st

have fiscal operations on a deficit
basis. But if we allow for prf-

vately-financed

—3

96»

105

100

—3

101

105

101

—3

102

106

102

—3

101

107

104

—3

101

112

107

—2

—3

102

deficit

____

Quarter

spending

government account, the effec¬
tive deficit during the
downswing
was

about

the

Period 8: 1955-57 plateau

In the 1953-55 recession, we did

size

same

1957—1st

Quarter

2nd Quarter

the

3rd

Quarter

fective

4th

Quarter

preceding boom; and the ef¬
deficit tapered off during
downswing and turned into a
surplus
early
in
the
upswing.

the

Taxes

this

the recession

occasion

reflected

*Not available in
and

cushioned

the

part

end

this

the

Columns

drop

on a

pectation of reduced

pressure.

and
On

the

ex¬

CURRENT
motive

government
economic

whole

got

our

revival

not

though,
out

^Corporate tax accruals due to October, 1950 legislation removed.

^Between $500,000,000

see

CURRENT

BUSINESS,

for adjustment in

income

and

national

1950.

income

Column

product account"

series.

includes

included

Column

purchases

shows

corporate

and

of goods and services,

indirect

taxes

transfers and

in "gross saving."

Inventory changes in manufacturing of machinery and transoortation equipment. Book values from SURtEY OF
are
reduced to l!)4<-49 dollars by
quarter-end values of the BLS wholesale index for machinery and
changes are inflated back to current dollars by quarterly averages of the same price index.

BUSINESS

Rough estimate of

amortization.

Defense
Column

made

note (t)

"surplus

products;

.Column

rapid

SURVEY

basis;

Column

excess

correct

reduced

A—C:

accrual

interest.

Column

profits tax, based

comparable form,

—$500,000, «()<),

SOURCES:

by dropping sharply;

and, of course,

—11 -

101

4th Quarter

the

•

—9

Period 6: 1953-54

■

1957.

____

Quarter

delays,

good management.

spending
Hart

•

timing of the growth in
(as

govern¬
some

to
the easing of
the economy; but the

expenditure

*88

'4-

1952—1st

dividend

insurance had

relation

pressure

;

•>

4 83 4: >;•— 1

•

;

hK';- f

% i:

3rd Quarter

1951—2nd Quarter

decompression „.of .local

the

was

""Statement by Professor
the Joint Economic
ton, D. C., June 4,

The

The fact

com¬

just in
downswing

receipts than by

total

;

basis

the

reverse

Period Average

through
luck. In

recession, the

ex¬

degree to which the appropriation
process

shifted

uary

problem is further compli¬
cated by the fact that there is a
considerable carryover of unobli¬

with

Adjusted
—Figures-

Surplus or Inventory
Deficit (jf—)
Growth

Expendi-

personal tax cut effective in Jan¬

Unobligated Authority
The

one

1948-1950

help

equipment is delivered

government funds

fiscal

Major Items of Privately-Financad Deficit oiiGovl.Acct.

mind

in particular the problem of limit¬

opened

their

government

priations

from

Seasonally adjusted annual rates)

Govt. Operations as Shown

period wheh tax policy
more
adaptable to

and

and goods
Such business outlays
on
military orders are in
privately-financed
deficit

gated

Account, Quarterly, 1950-1956

—;—in Social Accounts

be much

iriust

was

in process.

and

the

schedule or shift to
have the another in the ensuing quarters.

1-62

Tax Weapon

are

inventory of materials

The

duction-costs.

sup¬

equipment,

are led to put in new fa¬
cilities and then to incur produc¬

based

hold

whether

Operations of Federal, State and Local Governments,

(Billion Dollars:

forecasting, even if
the uncertainty

bined fiscal operations of Federal,
state and local governments

effect

decision

ap-

away

the

tion

' f .4

;

effective spend¬

To forecast the

everybody

on government expendi¬
ture in the 1957-58 fiscal year, as

placed
pliers

for

one year

January means that to

priations

must

alternative with¬

come

set

can

the

much

using

Including Privately-Financed Deficit on Government

appropriations.

follows,
the slack.

cannot

ditions

The

unreliable forecasts.

in the spring

Fiscal

slow down the rate at
which they obligate funds through
new contracts, so as to be able to
get improved models of various
weapons
presently even though
they have bad luck in getting new

closely

very

sta¬

fiscal

"taxes

Needs

hap¬

may

economic

the

(including, plication beginning in the ensuing present

orders).

appropriations and let
economic impact come

might

are

the

arrangements

withholding. That is, we can put

ordinary pattern of enacting taxes holding schedules, and focus the

business activity

through. On the other hand, they

off
We

cut

map.

aimed

had

they

authorities

defense

penditure is
the

reliable three-months forecasts,, if

hoard up for later fiscal years, the

this

manip¬

declaration

By using up some of the margin

utopian

pictures of fiscal
policy aimed at economic sta¬
bilization, government spending
often figures as' a "policy variable,"
to
be

tune

policy in line with business con¬

deliberately

probably be more sensitive to

current

(say on quarter-dates), and
annual
tax
rates
and

year

re¬

Congress

TABLE
In

higher normal levels at

stated

outstand¬

rates

saw

it is feasible to change in¬
come-tax withholding within the

temporary

But

accurate.

1950,

reduc¬

seems

consequence,

new

reduced

ahead. Forecasting is not

year

that

tion. Lacking this kind of advance
in industries
for defense, and a planning, we are terribly depend¬

produce

will

part

good

operations

further

and maintains that in the
event of rapid military technology advance and appropriations
cut there would be a hoarding of unobligated authority and
shift in orders to new models of unusually long lead time with
reduced production spending.
ing complicate fiscal-tax policy,

basis—with

ing has declined substantially rel¬

rec¬

right
taxes
involves
accurate
forecasting of tax needs more than

conclusion is that J it is
urgent to lay plans for a tax cut
that can be put in force on short
notice
if
activity
sags.
In
my
judgment, any such cut should be

pansion

amount

Congressmen to lay plans for temporary tax

urges

cut thajt would

likely to lack one factor which
helped in 1953-55 — the heavy
backlog of defense orders. The

Despite admitted forecasting difficulties, Columbia University
professor

policy but out of private
spending on plant and equipment,
the auto boom and housing ex¬

Thursday, June 27, 1957

Computed

and equipment put in place, which is sufficiently defense-connected to be covered by
seasonally adjusted by AGII for this memorandum from data of U. S. Treasury and Office

plant

and

Mobilization.
F:

Allocation

available

Treasury

estimates

amortization

by reimbursement of contractors for

earlier

deductions by years.

capital outlays.

Ihis is subtracted

representing funds

Volume

185

Number

5650

The Commercial and Financial Chronicle

acres

Farm Products

are

cattle,

Factors
By

their

sent

Central

States

rumored
•

Developments that

reduce

may

the

;

farming price structure con¬
siderably may also increase the
price of farm land, according to
nationally
visor.

known

Other

financial

factors

in¬

are

For

several

years

organization has been attend¬

ing

the

annual

ferences

Chemurgic

the

West.
meet¬

ings

other

and

may

do.

can

raising

frosts

They

Price

Although
discussed

these

That

being

five

mile

today,

wide

(Special to The Financial Chronicle)

ST. LOUIS, Mo.
korn is

city
the

the

some

new

be
of

"rare

found

Stock

which

your

will

27th

held

Exchange.

Arthur 1 Mark,

Neb.

Pedersen

has

staff
stall

Merrill
Merrill

of
01

mention:

jApA

,nc. formed

Incorporated is engaging in
curities
523

business

—

been

Donald

added

T vnrh

Truman

are

dent and treasurer;

the

Bartling,

Pierre
Pierce,

Lynch,

from

Theodore C.

Secretary. Mr. Anformerly with Ander-

Fenner & Beane, Patterson Build-

derson

ing.

son-Plank-Arnao.

was

in¬

and not
merely for

People

will

always be
able to spend

.money

shelter,
luxuries,

and

but

rich

person can eat

Roger W. Babson

than

poor

person

and

probably not as much, how-the percentage of fruits and
green
vegetables
consumed
in¬
ever,

creases

the

considerably

demand

lor

than

wheat,

corn,

potatoes, and other staples, Prog¬
ress
along chemurgic lines will
increase

tne

vaiue

farm

mucn

property.
Atomic Wonders

Atomic

tionize

wonders

farming.

discussion
about

the

after the

revolu¬

may

There

much

newspapers

toda /

dangers

"fall-out"

explosion of

hydrogen

bomb. It is feared that these "fall¬

outs"
babies

with

other

some

birth

the

heads

two

might

also

for

affect

people,

cattle

fowl; but atomic farming
worthwhile

the

with

deformity. This would

unfortunate

very

and

result

may

case

and

may

development

new

agricultural

products.
The
trees

spraying of fruit and other
to

keep destructive insects
be entirely changed. Instead
being sprayed as at present,

The Telephone Waveguide is

may

they will
trical

birds

enable

the

cially designed tubes

again. These

chemurgic

cycle

one

of the

newthingsthat will help to give you better,

faster service. We expect a pair of these spe¬

elec¬

enable

mitting electrical

kill off insects and

soon

the

progress

will

back

come

birds will

with

sprayed

This

rays.

many

million times

to
as

God intended.

may

waves

be capable of trans¬

vibrating

to 70,000

second and may carry as many

400,000 telephone

conversations

hun¬

dreds of TV pictures at one time.

The

Gibberellin

Some

years

noticed

that

joined

Wonders

the

ago

plants

Japanese

which

ad¬

plant with
a
certain
a remarkable growth.

fungus had
This

found

was

amongst the

plants especially. Later
gus

reduced

was

million

per

acid

(usually

Exhibitions

where

you

plant

although
Food

tilizers.

revolutionize

Instead

sprayed.

spraying

show

results

that

taller

this
forest

trees,

better yields for pulpwood,
and improved fiber crops, such as
cotton.

Gibberellins also

lengthen

the stems of flowers, hasten de¬
velopment of transplants, and re¬
duce

the

work

farmers

and

gardeners.
Improving

pastures.

holds in

Pasture

Lands

and

Florida, where 10

1940 the number of house¬
the

United

States has

in¬

creased about one-third. But here's
a

significant fact. The number of
with telephones has in¬

households
creased

over

two-and-a-half times!-

The future increase in

population
bring new growth to the
telephone business. But there will
alone will

also

phone and
the

Lengthening Seasons
Gibberellins make grass greener
in

Since

house.

Promise

many

things for telephone

new

not too

wider

which

our service
distant future will be

range

our

of telephones from

customers

can

choose.

They will be of varied sizes, styles
and colors for the particular needs
of the living room, bedroom, kitchen,
recreation room, etc.

coming

major developments in new
and improved service give promise
of much future growth.

inauguration of service

will also

years

increase in the

users*

use

other

new

and

growing field is the
special TV programs
over closed circuits to
theaters, hos¬
pitals, branch offices, etc.
transmission of

development
♦ only better service for the public and
business
for the

make
and

new

means not

but

broader

telephone

our

services

valuable,

opportunities
As we

company.
more

convenient

also increase their

telephones around

and to Alaska has already
brought
large increases in traffic. Another
cable system is under construction

Working together to bring people together

from

BELL

This will be accelerated

the

United

States

Hawaii.

see a

of Bell Sys¬

lines for data transmission. An¬

tem

Each

Recent

The

The
great

the underseas cables to Great Britain

use

services and equipment for
need and location.

new

every

important part of

of the tele¬

greater
more

in the
a

—

Experiments

Great

far-reaching growth ahead for the telephone business, with

mendous in recent years.
is much more to come.

fer¬

mixing chem¬
icals
with
the
soil,
the
seeds,
sprouts, and leaves of the plant
are

Telephone growth has been tre¬
And there

hour.

Administration

may

There

Holds

the

see

fairly cheap and—
yet passed by the

Drug

they

and

Future

reported

hour

from

not

salts

are

almost

can

grow

The sprays are

yet

solution

potassium

water).

The

and

10 parts

parts

rice

this fun¬

used in the ratio of 0.1 to

use

and

Vice-President; Robert

Henrette>

poses

■food,

a se-

offices

Avenue. Officers
E. Anderson, presi-

dustrial pur¬

food.

Marquette

their

for

crops

another

MINNEAPOLIS, Minn.— APA

farmers

market

Jules R.

OMAHA,

Exchange,

admit

Valley partner in the firm.

Mississippi

Witt* lVierrill I vnrVi
VVlin Merrill
.L.yncn

farm—

will

Exchange membership previously

(Special to The Financial Chronicle)

Cerium, Dysprosium, Erbium,
Europium, Gadolinium, Holmium,

down

Oren L. Setze-

—

metals"

earth

Building, members of the Midwest"

profitable farm land. Besides, one
of

June

partnership. Mr. Huber
will acquire the New York Stock

associated with White

now

Company,

new highway and 10 miles
long. This should greatly improve
the price of certain present un¬

season.

Huber

it will be
each side

of the New York Stock

elongate

may

Irving Weis To Admit

Joins White Staff

of the

make

corn,

hold

Irving Weis & Co., 40 Exchange
Place, New York City, members

cities

divided

is, instead of
miles square

city

one-half

developments

may

Ytterbium.

especially

could

government

average

Farm Land

above

land

sell

for residential properties.

may
•

the

cities.

and
are subject
safer business by ex¬

tending the growing

near

the

grass-fed

may

fruit,
which

Also, remember that the new
highway systems to be built by

But this is not all that the Gib¬

the

quick

animals may be revolutionized.

berellins

too

Lanthanum, Lutetium,* Niobium,
Praseodymium, Promethium, Sa¬
marium, Terbium, Thulium, and

are

.help

hogs,

where

It is

Gibberellins

Don't

your farm
land. This
applies to small farms

Con¬

Central

Tnese

cattle,

member of

other

price of the best steaks
to one half their present price. In
fact, the entire price structure of

other products

dicated by Mr. Babson.

land.

instead" of

Kansas

for fattening.

that

price of farm products, they could
easily increase the price of farm

reduce the

ad¬

affecting

future price of farm land

fattened

pastures

pasture
may

Gibberellins.

may

native

acres
of

use

cattle

being

ROGER W. BABSON

needed

three

with

needed
Texas

now

only

(2991)

TELEPHONE

people.

SYSTEM

The Commercial and Financial Chronicle

(2992)

Continued

from

than

page

which
blocks

Atomic

authority on this process,
requires a plant several
long containing literally

hope

sideration, as well as my own
size-up of <the controversy, it is
belief that/ a great many of
those who favor government de¬
velopment of atomic power are

would

motivated
to

principally by

the

use

atom

kilowatts

waste of two scarce

scientific

—

brain

Valley Authority, the Bonne¬
ville Power Authority, the Rural

has

Electrification Administration and

other

Government should not undertake

see

power

long

enough to know
They offer bene¬
privileged few at the ex¬
of all the taxpayers of the

programs

also

have lived

with

thermore,

tions

opinion

that

should

Government

construction

either

are

willing
ment

such

unable

develop¬
reactor, with or

and pressures

back

designs is that they

steam

temperatures
which are a throw¬
plant

have

Thursday, June 27, 1957

lifetimes

hundreds

At present some of the less
dangerous wastes are buried in
plain holes in the ground or in
years.

Removing the Ashes
Present

burned

before

less

fuel

of less and

use

are

and

Other wastes

packaged, shipped out to
dumped.

costly

sea

The deadlier mate¬

underground

steel

tanks.

Unfortunately, the hottest wastes
may

outlive

some

better way has to be found

the

steel

tanks

; 1

guard against these wastes.

percent of the

at
work on this problem and claim
to have some good prospects for

reactor can be

find ways of improving the char¬

solution.

acteristics

one

atomic fuel in

rial for the most part is stored

concrete-lined pits.

kilowatthour of electricity.
Reactor de¬
signers have a real incentive to

expedience

that less than

technology
Through¬
out its history our industry has
continually improved the thermal
efficiency of power
plants
by
going to higher and higher steam
temperatures and pressures, and
progress still is . being made in
this area. The practical effect of
power

of at least 20 years ago.

indicates

fuel

the

must

generate

steam

produced

The

scientists

Research

pumping

actively

are

the

being done

wastes

into

replaced,
which
now
requires
shutting down the reactor. Shut¬

nuclear installations
thermal

ground salt domes 5,000 to 15,000

ting down the reactor at frequent
intervals is costly, but must be
done so that the "ashes" of the

actors

feet below the

reaction
atomic
nium

will

fire
will

physically.

not

and
not

extinguish

the

unused

become

the
ura¬

Still; another problem
relates to finding

be
safe
inexpensive way of disposing
the
waste
products
formed

solved
and
of

oil

materials

wells

and

under-

j,]

surface, where; the
presumably could not :'
drinking water
or

contaminate
other

natural

resources.

dis¬

posal method that looks practical

distorted

and

conven¬

radioactive "ashes" of the? atomic

experts, is to mix the most dan¬

By contrast,

90% of burning give off

many:

times

radiation than humans:

the coal that is fed into them.

problem

efficiencies of power re¬
likewise can be achieved.

abandoned

when atomic fuel is burned. These

tional plants burn about

Another

that better

with present

stands and

some

can.

the

safely*

"ashes"

economical, according to

gerous

some;

wastes with a special clay

and than bake the

the wastes.

clay to lock in

The finished product

un¬

undertake

cial

two-thirds of its gen¬
erating capacity is now in steam
plants
and
only
one-third
in
hydro-electric plants.
REA co¬
operatives, created for the - al¬
leged
purpose
of
distributing
electricity to residents of rural

WHA T

A KHES
ES C
SI

government finan¬

some

assistance.
Solved

Problems to Be

Many problems must be solved
atomic

before

available, now en¬
gage
in activities ranging from
attempting to connect customers
already served by investor-owned
companies to seeking franchises in
good-sized cities served by utili¬

knowledge

attractive.

experience

and

for

needed

are

not

becomes

power

economically

station

central

de¬

design not being de¬
veloped unless and until it is;
conclusively shown that industry
or
other
non-Federal
organiza¬

However,

whom

I of

promising

surplus electric power

was

Federal

without

the

reactors

undertake

produced incidentally at its dams.

service

that

the

promoted as a river develop¬
project that also • would

areas

reactor.

view

not

ment

market any

the

planned, underway, or in
operation by industry or other
non-Federal
organizations.
Fur¬

these subsidized operations long
enough to know that throughout
their histories, step by step, they
have
gone far
beyond the re¬
ported intent of those who pro¬
moted them, TVA, for example,
was

build

signs

nation.

offered

construction

what they are.

pense

staggering,

the United States.

when the AEC has
said
that
a
particular
reactor
type has advanced to the point
where it is ready for pilot plant
or
full-scale construction, some
company
or
other non-Federal
group, within a reasonable time,

We have lived with the Tennes¬

fits to

for the three
plants reguire about one-tenth of
the electric energy produced in

In the past,

furthering government electric
production; :
• •

Federal

pumps,

public funds.

power, and

power

subsidized

and

desire

means

seem

commodities

motors

will

you

indeed

atomic

uneconomic

take my word
that the process is both complex
and costly.
The amount of elec¬
tric power required to run them is

For Private Electric Power

produce

this has been the

thousands

Energy Prospects

power reactor

virtually

every

phase of atomic power plant per¬
formance.

One

problem, for example, has
to do with preparation of nuclear
fuels for use in a power reactor.
As

you know, mining of coal is
fairly simple operation, as is the
washing and screening process by

ties.

Electric Industry's Progress

Against
pleases me
of activity
velopment
since
ergy

this

which foreign matter is removed
from coal before it is pulverized

background

to report the amount

in nuclear
that

has

nium,

Act of 1954, which for the

have

centrate the

"electric capacity in
1,500,000 kilowatts and

involve

400

over

uranium.

uranium
use

for

before it is
fuel.

reactor

Moreover, the metallic uranium
generally must be fabricated into
special shapes, which often re¬
quires precision machining, and

which

processing steps
to purify and con¬

required

are

of various prom¬
which are expected

excess

than

suitable

projJgctsr

types

less

Several chemical

ship of reactor facilities. At pres¬
ent, 69 companies in our industry
are
participating in 14 power

ising

contain

first time allowed private owner¬

reactor

furnace. Ura¬

the other hand, must be
extracted
from
the
naturallyoccurring ores which frequently

place

of the Atomic En¬

passage

inserted into

and

de¬

power

taken

million

encased in a jacket of a metal
companies in New such as zirconium or stainless
steel. The jacket or cladding pro¬
England are playing a very im¬
tects the fuel from corrosion dur¬
portant part in the reactor de¬
velopment program of our indus¬ ing the reaction. These various
try. The Yankee Atomic Electric steps of preparing uranium for

dollars of investors' funds.
The power

Company project,

now

use

under con¬

reactor

power

are

con¬

Rowe, Mass., and the siderably more complex and ex¬
larger power reactor which New pensive than those required in
England Electric System has an¬ preparing coal for burning in a

struction in

nounced

will

construct

boiler.

its

We must learn

also how to get

system later on, are a real
credit to the companies partici¬
pating in these projects. They are

better performance from the ura¬

illustrative

tenths

own

the

which
the

nium

vigor
with
is pursuing

our
industry
development of atomic

fuel.
of

uranium is
form

power.

Should
•'

Today

the

Government

Enter?

one

can

what

will

system

for

assurance

reactor

/-'•*,
say

commercial

fuel.

and

natural

the

promising reactor types
hope to determine what

U-235

most

can

ment

now

work

ferent

variations
certain

cally,
search

basic

types.
Histori¬
orderly basis of re¬

plants

course

change

to one of

;

reactor

with

carried

Oak

out

gaseous

the

diffusion

Ridge,

Tenn.;
Ky.; and Portsmouth,
plants are operated
principally Tor the purpose of
providing- materials for our de^
fense effort, but they are also,the
Ohio.

These

sources

this ' logical

just building lots

but

atomic

Paducah,

most progress, and_ progress
being made in the atomic po^er

ToTi^Veour scientists, and

into

U-235*

government's

the

field..

placed

uranium

and

engineered

U-238—

fissionable

transformed

by which the U-235
isotope is separated from natural

dif¬

types, plus
improvements of

development
along
promising routes has resulted in
Is

uranium—called

The process

those

this

normally

fissioning

develop¬

number

its

the fissionable
the basic atomic
remaining 99.3%
of

The

not

fuel

reactor

and

includes

some

isotope,

can

type or
types ultimately will be most at¬
tractive. Accordingly, our nation's
program

weighs
5V2
Only seven-tenths of one
ounce,

Only by following an orderly
pattern of research, development
of

release

can

percent of this cube, or six-tenths

use.

construction

which

uranium

pounds.

best

U-235, the isotope

natural

with

the

seven-

natural

A cube of refined metallic

energy.

'■

about

percent of

uranium

fissioned
When

Only

one

for
■

from

most

tained.

which

power

While I

atomic ^fuels

reactors
am

are

ob-

something less
n

Volume 185

Number

5650

The Commercial and Financial Chronicle

(2993)
be

can

buried

underground

now

caves
with no apparent
danger
that water will unleash the radio¬

that

activity.

In spite of the substantial
prob¬

now

The manufacturers

in
are

one

because

being

different

virtually

built

from

the

every

substantially
others.

Once

ers,

sizes

time and costs will

come

As with conventional boil¬

reactors of larger and larger
are expected to
be built in

the future with

consequent im¬

provement in unit costs.

experience which

will

With the
be

gained

fabricating
increase the life

atomic

and

the

safe

many

processes

production

power.

How

the

upon

techniques

■

atomic

are

plants? While I

power

that

sure

there is

be safely operated.
compiled a remarkable

safety

record

its

years

experience

re¬

actors.

re¬

actors

with
operating
During that period 25

have

AEC

been

safely operated

facilities

(actually

private contractors) for a total of
over 600,000 hours
involving about
18 million
no

man

hours.

There

were

accidents involving contamina¬

radiation

ciently serious to

the

plants

leading manufacturers to

Joliet,

and

111.

miles

to be easier than

injury
cause

suffi¬

lost time

It is interesting to

personnel.

sure

ested

join¬

of nuclear

My answer would
should not favor such

be that you

stocks

for .'that

reason

alone, although in my opinion
participation
in nuclear -power
projects indicates farsightedness
the part of management. How¬

speaking

ever,

would .not

You

might ask
whether the entry of the electrical
equipment and boiler manufac¬

projects

realistically,

expect

would

I
nuclear

that

source

development.

power

conclusion, let

...

that J

me say

have great faith in the
ability ot
our
engineers and scientists to
solve the many complex problem*
in

the atomic power field.
They
have been confronted with
prob¬
lems just as difficult in other
fields and have solved them. "The
need

for

developing comnaercSal

atomic power is with

The po¬

us.

tentiality exists for economically
attractive ..atomic
lieve

power.-

is " only

be¬

ot
before potentiality become*

time

reality.

matter

;

>'>

turers into the nuclear equipment
field should be regarded as a bull¬
ish influence on their securities.
I

would

think

answer

Securities Salesman's Corner

by stating that I

should

considered

bullish, but only from a long-term
point of view. I say this because
in

the

early

equipment line

years
may

profit possibilities.

the

By JOHN BUTTON

The Very

nuclear

Wealthy Client

offer limited

Occasionally

Experience of

potential

90%

will meet with

you

client

income

who

bracket.

tax

sider

the

man

this

category

than

present among Ithe rest of

us.

The Accounts Do Exist

con¬

of the different aspects

some

When

do, it might be well to

you

One

compa¬

plants.

common

keeping it

common

utility
constructing

are

ing in the construction
power

that you are inter¬
all this means to

today.

favor

electric

nies that

what

investors

should

stocks

(population

within

profit to such companies, particu¬
larly in the early years of nuclear

You might ask also whether in¬

Nuclear Equipment Line

can

has

the construction and operation of
power

several

City. A reactor is a
relatively sluggish piece of ma¬
chinery and making it stop work

convincing evidence that

was

atomic

research

going.

development

many

industrial

York

try to minimize the
hazardous aspects of these plants,

would

one

tion of off-site property, and there

and through

52,000)
New

seems

through AEC's basic research and
program

AEC

improve

reactors

one

that

reactor,

miles

construction and operating experi¬

down.

note

and

commercially usable reactor de¬
signs
are
determined,
through
ence,
the manufacturers should
be able to start
making more than

de¬

vestors

having to custom-make each

reactor

and that AEC has issued construc¬
tion permits for large
power re¬
actors to
be
located within 14

fuel,

other

costs

power

expected

of the fuel in the
reactor, to dis¬
pose of wastes more economically

involved

atomic

found

date seems to bear out this state¬
ment.

cost

lems involved, there is real hope
lower

the

crease

for

the future.

way,

will

is.. currently,, operating
within the city limits of
Chicago

atomic

Hopeful of Costs in the "Future
'

the

ways

Although

your

experience may
only have the

doing to make this

bigger, better railroad.

opportunity of doing busines*
on

GROW?

investing that such a person
might consider. One of the most
important things to remember in
clientele building is that each one

AILROAD

of a series telling ivliat Chesapeake and Ohio

to be

customers

your

has

certain

pirations,
tional

cars

owned

new

the C&O, CLIC knows it. At the Center the

printed form and
machines take
to each of

Shippers realize how important it is to know
where their cars are at any particular time.
Now, with its

volume

tape. Then the CLIC

automatically teletyping
Chesapeake and Ohio's 56 district
over,

traffic offices the location of every car in

Car Location Information

•

business

that

What Does

which

that office is interested.^ -:•

self

paying

90% Tax Mean?

moment

project your¬
category of a man
income tax of 90%.

take

the

chances

sort

that

Again, you may have so much
capital that further investment
just for ordinary income has lost
its appeal. I happen to have heard

wires—the world's largest
transportation teletype network—brings ship¬
pers the most modern systemwide car report¬
ing methods.
j
j
;
j

electronic reporting systeim
The

soon as a

sification

freight

yard

through

car moves

or passes a

new

Car Location

;

Information Center

j; is another example of C&O's willingness and

Here's how it works:

car

ability to develop fresh techniques to keep
growing and going—for bet¬
ter service to
shippers.
Chessie's railroad

clas¬

major junction point

person

once

that

man

bracket

tax

anything

didn't

"money
to

him

mean

anymore.";

actually did not know how much
he

was

take

worth. Yet this

man

would

dollar bill to the
race-track, put five dollars
on
four long shots, and if his horse
came
in at long odds he was as
twenty

pleased about this

as a ten-yearwould be with a $100
That is why some
very wealthy investors and those
in the high income brackets have
been going into "win or lose" oil
drilling ventures.
It costs them
very little if they lose and there
is the "kick" out of hitting a long

old

boy

spinning rod.

shot that appeals.

of C&O's J6 freight traf¬
fic offices, fronf coast to coast,
from Canadailo Florida, now
has up-to-thiminute
teletyped

information/on the location of
alt

shipped from, or con¬
signed to, ms territory. Contact
your nearest traffic office and
see how this new car
reporting
system works for you.

cars

a copy

i. rz

'.'■a

L-'

3109 TERMINAL TOWER, CLEVELAND 1, OHIO
V- f. |,}
y'**• '* •'>'»
r/
*•'
r ' '
*•* '
,

■

man—

investment-type securities. It is
quite possible that if you can (un¬
his

position,

his

;

might

investment

have

who

thinking.
limited experience

own

known

investors

several

worth

were

partial haven, and municipal
turnpike revenue bonds also
have their appeal. But there is a
limit that even this type of in¬

and

vestment
comes

can

small

One

upwards to
bought the

man

cats

and

unlisted

dogs

dealer

from

who would

and many of them turned out to
be fabulous profit makers: j. Some
of

them,

nowhere

fell

But

of course, got
by the wayside.

approach

when

satisfying the investment
certain
very
wealthy

needs

stocks

and

shots"

pay

watching these
off

finish

the money.
I
have
known

"long
of

out

several

other

wealthy men who were the
plainest,
everyday,
most
ap¬
proachable fellows you could ever
very

Their 'tastes

meet.

their

and

lives

the

even

sort

simple

were

devoid

were

excitement

that

the most of us take for granted.
They had long ago lost the feel¬
ing of urgency and insecurity that
most

have to live with most

men

of their lives.

pleased

for

ment

They

have

were

little

actually
excite¬

the very

Don't forget,
wealthy investor can do

business

with you just as

change.

readily
else, and if you meet
him someday it might not be such
a
bad idea to keep these things
as

anyone

•

Coburn & Middlebrook

Open Branch Office
DOYLESTOWN, Pa.—Coburn &
Middlebrook,
opened

Incorporated have
office in the

branch

Fountain

House

Hotel

under

management of Carmen C.
man.

Take the case of an in¬
with a tax-free spendable

■

the

Cole¬

people.

this

got his pleasure out of buy¬
ing thousands of shares of $2*00
man

in mind.

vestor

income

$5,000

week.

there

What

continue

Gilligan, Will Admits
Albert

Will

became

partner

& Co., 123 Green¬
wich
Street,
members
of
the
American
Stock
Exchange,
on
June

incentive

and

tax-free
doing

years?
Money at this
stage loses its importance and al¬

I V
■v

high-grade

securities if you have been

Chesapeake and Ohio Railway
■.'

usual

this

booklet describing CLIC? Just write:

new

Again, if you are in the 90%
tax bracket, you undoubtedly are
interested in tax exempt securi¬
ties. Certain common stocks offer

buying
Would you

: the

lower

who had So much capital
told an investment

man

that

Each

well

telephone him long distance half
way across the country.
These
low
priced .speculative
stocks
were
well researched, however,

capital and a fair income
secondary considera¬
You have very little in-,
centive to increase ordinary in¬
come and you are in a position to
are

accurate

miles of servicing

depend on quick,
information through C&O's new

highly specula¬

some

tive securities to such

tion of

return

tions.

could not entertain.

tell

of. offering

wildest

and destination points can

can

ready when and if it might

happen to you—and it can. If ycrn
will keep these fact;s in mind yew
will be alerted to the possibLhtiea

than likely you have already ar¬
rived at a point where conserva¬

Ohio

both the originating

in
this
category
occasions, it is weffl

million.

Chessie's

customers

rare

First of all that means that more

Center—CLIC for

short—Chesapeake and
them exactly. CLIC's 25,000

will

investors

very

derstand

the

into

with

you

find your unorthodox approach a
welcome change and a stimulant

client.

your

information is automatically recorded both in

by Chesapeake and Ohio. At the same
time, a daily average of 26,000 "guest" cars
owned by other railroads move over C&O.

with

meet

consistent and profit¬

Just for

freight

satisfactory to both yourself and

the 93,000

investment.

cult to do

03,000
are

emo¬

a.plane of understanding
them, you will find it diffi¬

able

Chessie's "kittens"

different,

learn

you

people
with

keep track

and

approach

Unless

Howdo you

and prospects
individual goals, as¬

that

for

though
a

you may

occasionally buy

few bonds, or investment grade

commons,

different
about

there

attitude

investments

is
■

(an

New

Bly th Branch

OXNARD, Calif.—Bly th &

entirely Inc., has opened

of' "urgency"

in Gilligan, Will

the part of

at 309

South A.

Ce.^

branch ofSce

Street, under Jfoe

The Commercial and Financial Chronicle

(2994)

tries

Prospect oi Chronic Inflation
And Its Impact Upon Insnrance
By CHARLES R.

WHITTLESEY*

Look at the

wholesale
States.

in
are

comparisons

States

mately the
to 1928

stood

admitting "creeping inflation," Dr. Whit¬

continu-

that
i

inflation,

the

same

the dollar

would 125

1925

should

(eaders

Chart

one
con¬

stantly alert but it would be bad
public policy for the country as a
whole and bad public relations for
the life insurance

certain

inevitable.

seems

evidence

as-

which I shall draw relates to ex¬

The

sumed,
second

historical

The

pres¬

ently to be

perience in the United States. It
is obviously impossible in ... [a

part is

concerned

paper] of this sort to present price

with the bear-

level

i n g
which
creeping i n -

flation
tend
Dr. C. R.

Whittlesey

would

have

the

two

main divisions

of the insurance industry, life in¬
surance and fire and casualty in¬
Before attempting

surance.

however, it is
cate the

either,

necessary

indi¬

in which I shall be

sense

using the term "inflation".
There

further

that

definitions

ican

data

not

applying to foreign

em¬

degree greater than

mately stable average. "Creeping
rise in

the

price level
which,
though
small, is continuous rather than
temporary and steady rather than
spasmodic.

If I

not

mistaken,

these interpretations are in accord
with prevailing usage among the

general public, which is the usage
with which

The

Myth

wish

conform.

Chronic

Inflation

Implicit in the title of
are

two

assumptions,

my paper

neither

which, for reasons to be indicated
later, I am willing to concede. The
first is that the insurance industry
is faced by the prospect of con¬
tinued

inflation, and the second is

that the inflation if it
be expected to be of

character.

Under

comes

the

can

creeping
circum¬

stances, I have no choice but to
analyze insurance company pros¬
pects

terms

sumptions but I do

these

two

as¬

with distinct

reservations.
Before

effects

considering the possible

inflation

insurance,

however, I wish to

deal with

familiar

inflation

view

that

the

chronic disease. I shall undertake
to show that the idea
as

of inflation

continuing phenomenon is a
delusion unsubstantiated by either
history or logic.
Inflation may
a

•An
before

address
the

Professor

International

Whittlesey

Insurance

ference, University of Pennsylvania,
21, 1957.

Con¬

May

wartime

here

case

precedent, at least—to maintain
the
purchasing
power
of; our

in the history of the United States
is leaping wartime: inflation, fol¬

is worth noting
to

being

that the pe¬

coun¬

ter

near

comes

about

the

Second

World

War

period of peace.) Yet the period

1610

LAIOI

a time of rising steel
active discussion of
"creeping" inflation.

came

prices

and

The story told by

the record of

wholesale prices from 1800 to 1940

proximately 31/2%. The rise in
each year for 13 consecutive years

ing

was

great

in the entire five-

year period from 1952 to 1956. The

earlier period was not regarded as
one
of inflation! The current pe¬
riod

has

been

filled

about this so-called

with

alarms

"creeping" in¬

flation!
It

surprise to most
people to be told that the histor¬
comes

ical record of prices in this coun¬

try

discloses

have

stability

such

pointed

from

out

People seldom take

Chart

long

I
1.

view

usual

is that

in peacetime the cheapen¬

effects

better

technology

sufficient to

give a very high
degree of stability-to the general
level of commodity
prices. The

were

inference

Unless

the

are

future

clear:

to suppose that

inventiveness

rate

for

has

the

slowed

down

or something else has come
along to offset it, we should surely
assume
that the process of tech¬
nological advance which has con¬

tributed so much to maintaining
price stability in the past will con-»

tinue to contribute to the preven¬
tion of inflation in the future.

I have offered in this chart. It

also

periods, such

sion

which

price

may

have

before.

comparisons

tween like

peak,

for

with

occurred
be

should

valid,
be¬

periods, a peak with a
example, or a trough
On

trough.

such

parison the picture of

quickly

disappears.

of stability over long periods

the

vance

Back

building

nails

hammeredyout

anvil,

the!

old

nails.

for

nail.

were

wrought-iron
are

iron

1800,

purposes
an

comihon

held

that

wage

increases

by the rise of
powerful labor unions. It is widely

ployers
unions

price

upon

em¬

by the strength of trade
bound

are

level

drive

inexorably

the

upward.

popularity of this argument
explains the revival of the infla¬
tion
of

scare

wage

every,

time

contracts

consideration.

The

a new

comes

slightly different design. This nail

series
for

historical

rec¬

ord, however, fails to support the
view that there is a direct" relation
between wage

rates and the price
once more to

end. A recent announce¬
of the large Amer¬

same

level

1800.

Are

refer

1942

stood
or

1925

the

to infer that hourly

the

wages were

made, that
prices in

wholesale
States

United

same

in these two

periods? Certainly not! The his¬
tory of the United States has been
one of continuing wage increases.
This

was

ognize

part of what we all rec¬

continuous

upward

trend of the standard of living

In the face of such
secular rise of wages the index

this

country.

only be of higher quality

of wholesale

than the usual nail but it will sell

less Constant

1PA7-4M00

forced

previously

one

PUCES

rounds

recurrent

point

type of nail of lighter weight and

STATISTICS INDEX,

has

past

invalidated

index

ican steel companies told of a new

will not

from the

been

the

through technology is far from be¬
an

evidence

such

the

nearly the price of spaghetti.
process
of cheapening

stated

nails

ment

I suspect,>

...

accept what I have
far but would feel that

'square-cut.
Today

consequepce^^th^y^ sell for

ing at

many

are

would

level.'Let

by squeezing them out,
spaghetti is squeezed out.

There
who

the

011

made

much

Cause of

The

The explanation of !the high de¬
gree

Inflation

com¬

continu¬

ally depreciating or indeed even a
gradually depreciating monetary
unit

Wage Increases As

unlike
period follow¬

compare
a

ing some wartime inflationary exr
perience with a period of depres¬

This
riod. from 1896 to 1914

appreciably less than the old

nail. And note that this announce¬

1897 to

of time shown by this chart is to
The proper adjective to
be found mainly in;the progress
apply to the history of inflation
of technology. A good example of
is
certainly not. "creeping". We
effect
of
technological '.ad¬
have seen running, galloping,, the

soaring, staggering but not creep¬
ing inflation. The typical pattern

Thursday. June 27, 1957

3910 the average annual rise in
the wholesale price index was ap¬

money.

of¬

been applied. From

never

WHOLESALE

be thought of as a temporary
fluctuation away from an approxi¬

me a

the

significant inflation in time of
peace.
The record seems to sug¬
gest that if we succeed in preserv¬
ing the peace we can reasonably
expect—on the basis of historical

IUREAU OP

can

inflation" suggests to

see

from

be sufficient for

inevitable

ment

decade or
noted

period of
I say, however, that while the his¬
"creeping" and peacetime infla¬
torical evidence would differ for
tion as any 'shown on this chart.
other
countries,
in
some
cases
(You will note that I am not in¬
rather widely, my conclusion that
cluding the years immediately af¬

ploy it simply as referring to a
rise in the price level (measured
by any standard index such as that
fox: wholesale or consumer prices)
a

of analysing the conten¬

them, one is tempted to say, un¬
satisfactory. I shall not add to ex¬
isting confusion
by
attempting

Which is of

countries

tion that inflation is endemic. May

inflation

still another definition. I shall

all

data should

purposes

variety of fered
inflation,
all
of

inflation

lowed, until the latest episode, by
even if I were qualified to do so.
plunging deflation. The deflation¬
Moreover, since the belief in ary part of the historical pattern
chronic inflation
is so strongly now appears, I am glad to say, to
held in the United States, Amer¬ have been broken.

endless

for

supporting the idea that in¬
is a continuing phenome¬
non, the historical record of these
years discloses a remarkable con¬
tinuity hi the level of wholesale
prices.

large or small
degree, is as
as

1942

140 years before. Far

from

com¬

flation

dangers against which in¬

surance

would

much at wholesale in terms

representative group of

modities

industry in par¬
ticular ever to acknowledge that
inflation, creeping or otherwise, is

whether of

United States has been

legitimately be regarded

Sys¬

presented

approxi¬
level from 1921

phenomenon. We

is divided
into two principal parts. The first
is devoted to examining, and inci¬
dentally to challenging, the view
paper

Gov¬

for

Age of the Gold Stand¬
ard," is a period to which, so far
as I
know, the term inflation has

in the year 1942 as they

other words,

buy
of

annuities.
present

official
of

did in the years from 1800 to 1810.
In

assumes this in order to examine its possible bearing on
life, and fire and casualty insurance. The author points out:
(1) central banking and other stabilization authorities' respon¬
sibility in holding back temporary wage-cost-push impact until
deflationary potentials materialize; (2) we cannot both escape
war spending induced inflation and balanced budget and enjoy
great tax relief; and (3) inflation would not be a threat to life
Insurance industry, and would stimulate interest in variable

The

the

Board

bring out

United

tlesey

;

from

of the

the Tittle known
fact that wholesale prices in the

challenges the view that higher wages cause higher prices.
or

The

here

the United
presented in

of the Federal Reserve

ernors

tem.

taken

book

movements

prices

chart

industry could not jus¬
tifiably continue in business if it accepted inflation—even if
it were "creeping"—as inevitable, distinguished finance au¬
thority opines, however, "that the idea of inflation as a con¬
tinuing phenomena is a delusion unsubstantiated by either
history or logic." In addition, the Wharton School Professor
condoning

Historical

Chart

School of Finance and

Though asseverating that the insurance

Without

long-term record of
prices in the United

before the First World War, which
is
sometimes
described
as
"the

Golcten

Evidence

States since 1800

University of Pennsylvania

United

the

Historical

wholesale

Economics
Commerce,

Professor of Finance and
Wharton

well

States.

prices was neverthe¬
over long periods of

Volume

time.

1&5

Number 5650

At times,

The Commercial and Financial Chronicle

indeed, the price

level actually fell in spite of a rise
in

wages,

between

did

1880

for

and

declined

15%

time when

rising

example
when

1890

prices

approximately

nearly

wages

that

That is to say, the upward
ment

wages

the

move¬

almost

was

downward

were

amount.

equal
of

movement

prices during this decade. In short,
the consistent historical record of

prices

and

wages

the

United

States completely refutes the view
that higher
wages
make higher

prices

inflation

inevitable.

being.
The

for

potential

tionary

•

time

the

■

capacity.In

this

;
,v;' /'
-combination

bination

bility

other

stabilization

same

prices.

consumer

the

central

authorities

facilitate

such

that

inflationary

the

responsi¬
bank and
to

the

modity
can,
in

exerts

pressures

general

prices.

fact,

contribution

and

level

The

make

The

will

problem

undue inflation

conclusion

United
many

de¬

fiscal

States

other

policies.
and

com¬

ness

;

tion in total

sible

only

expenditures is pos¬
by cutting down on

this item. Present levels of

either

levels

even

considerably higher do not, by

serious depres¬

leaders
is

manner

means,

consign

to.

armament

How

who

discover

is that inflation, creeping
.

Continued

parison of prices and wage rates
the

was

strength

labor unions stronger than in this

period.

Seldom

ever

our

peacetime history did hourly

earn¬

ings

these

rise

six

During

years.

period,

rapidly

however,

most

the

wholesale
prices and consumer prices re¬
mained remarkably stable in the
face of this sharp and steady up¬
ward

this

that

even

ful

both

movement

All

argues

in these days of power¬

unions

bine

mrUPlELD

rates.

wage

strongly

it.

possible to com¬
and price sta¬

rising wages

bility.
;

Again the principal explanation

of this most recent demonstration

that wages can rise without

a cor¬

responding rise in prices is to be
found in technological progress.
The critical factor in price move¬

ments

This

not

productivity

means

enced

but

influ¬

by every technological ad¬

including

vance,

about

which

much

figures

the

automation?

have

recent

heard

American

'so

Detailed

years.

not available

are

ductivity
but

alone

wages

in relation to productivity.

wages

pro¬

industry

example we may coii-,
sider the rise in output per. manan

hour that

tppkl piace in the? ihinihg

industry in former years>^This in¬

dustry is in

no way exceptional;
industries,
indeed,
could
make1 a far better'showing than;
the mining industry.
What f the
many

;

show

records

that

the

1920

output per man-hour in the min¬
ing industry was over two,*and,
half

times that of

1880

and

five

times.

the

1945

In the

was

even

Between
up

over

last few

years

seems

process

accelerated
of

1880.

have

been

Westerners favor

This fact

more.

rising productivity is compat¬
with
very
substantial
in¬

the Blue and Gold Network

ible

in wages without any nec¬

creases

essary

rise

Given

reasonably

tions

commodity

prices.
condi¬

secure

peace,
we
must
that there will be

assume

tinued

rise

through

per

surely
a

capita

output

the

discovery
of
ingenious methods of

con¬

ever

week-end fishing
miles

Bank

vention

one

wages

timing.
In¬
a
"costEmployers

ways

ward

offsetting

the

creased

tendency to turn to in¬
capital expenditures to
more

per
a

economical methods

production.
of

further

stimulus to

because

demand for

Such

The Far West—Where the

Yet, it is not only in the marketing
and distribution fields that Richfield

speedometer. Whether

the

Name Richfield Stands for

is achieving marked success. We

can

shut¬

prefer to patronize the

4,000 blue and gold Richfield service
stations

throughout the

have also made

the Best in Petroleum

outstanding ad¬

in the equally

vances

fields of

important

exploration, production,

research and

area.

manufacturing.

Because of this

So superior are these customers

finding Richfield products and

serv¬

rise

increased

plant and equipment.

ahead

policy of

years-

enjoys

planning, Richfield today
a

position of leadership in the

ice that Richfield's domestic motor

West Coast petroleum

gasoline sales in 1956 reached

the

The immediate ef¬

such

outlays to improve
capita productivity is to add

prices

increased.

up¬

provide
fect

trip

alsi

put 600

of Westerners

pressure on costs with a re¬

share of the market

generate

all agree.

as we

the
pre¬

seek

the

lot of.

tling through growing cities, millions

Timing

To
a
great extent
very
problem of inflation and its

sulting

steering wheel. A

touring the back-country

Central

push,"

people spend

time behind the

pro¬

duction.

creased

In the West

all-time
—

u*j^

high of 17,298,000 barrels

10.4%

over

1955. Richfield's

industry. And

motoring public in this region has

come

regard the

the symbol of

name

Richfield

unvarying quality.

capital expenditures add to

demand without, for the time be¬

ing, adding to the available sup¬
ply of finished goods in the mar¬
ket.
The combination of upward
pressure on costs and

demand

creates

of increased

strong

infla-

RICHFIELD
OIL

CORPORATION

•

Affect Insurance

persuasive evidence,
is afforded by a com¬

Ne\rer

lower
way

Inflation Would

in the United States from 1951 to
1956.

some

expenditures.

Creeping

most

however,

desire

The burden of my remarks thus

any

to main¬

of
easing? international tension and
thereby abating the burden of

arma-

ment expenditures

they
of

heavy taxation as the
realistic means of escaping

taxes

well,
today

military expenditures are
so
large a part of the Federal
budget that a significant reduc¬

itself

But

prospect

inflationary danger created by the
high level
of
military
spending. But we cannot both es¬
cape this danger and enjoy great
tax relief.
The
only acceptable
choice before political and busi¬

the

doubtless

countries

the

present

we
fail to meet the burden
of armament expenditures
by ap¬

propriate

With adequate taxation

that

successful

escaping

inflation.

tain the Federal budget in reason¬
able balance, we can escape the

valid, however, only to the extent

powerful

Such

those evils.

frequently suggested that

inflation.

authorities
a

toward

only

the burden of armament expendi¬
tures creates a serious threat of

solution of this problem of timing.

timing of events
forces

upon

inflationary

continued

Armaments and Inflation
It

evils

commit

Evidence '•

Persuasive
The

element.

flationary

of ; infla¬

prices, on the other hand, rose
during some of these years and in

dex

essentially one of timing.
by no means beyond our
ability to solve.
It

term result of the tionary forces. The methods at the
however, is to generate disposal of the monetary authori¬
capacity, introduce ties for improving the timing of
economies of production, increase economic processes in the inter¬
the. supply of finished goods and ests of greater stability include
stimulate competition in the sale such policies as the current "tight
of finished
products. All these money" policy exercised through
generate, in the course of time, general credit controls. They also
powerful downward pressure on include the so-called selective in¬
prices. They may even introduce struments of credit control. These
and other stabilization techniques
a deflationary potential which we
are
likely to speak of in terms are essentially devices for regulat¬
of
over-Production
ing the rate at which the com¬
and
over¬

time

the

sion

defla¬

longer

tionary and later deflationary po¬
tentials, the critical factor is the

as after early
1951,
relatively stable. Much
story is told by the In¬

subsequent

additional

sale

years,

process,

Average hourly earnings climbed
rather
steadily
throughout
the
period from 1935 to 1956. Whole¬

remained

held back until they meet the

resistance

(2995)

leader in Western Petroleum Progress

page

The Commercial and Financial Chronicle

(2996)

Continued

from

Thursday, June 27, 1957

ments of the

page

...

population. The dan¬ time. This fact facilitates the pe¬ the problem of inflation
.
.
are
lies in the possibility that too riodic revision of rates and makes especially important....
In the period of the twenties, a
many people may accept it as in¬ it possible to eliminate unprofit¬
evitable. If this should happen, an able types of business more quick¬ great many people found convinc¬
inflation psychology, mild in the ly. It also lies back of the fairly ing reasons for believing that they
beginning, might well take hold, rapid turnover of assets. On the were in a New Economic Era free
gain momentum and, in the end, other hand, they are less favor¬ of business depressions. In the
lead, as it always must, to col¬ ably situated in that their ex¬ thirties an even larger number be¬
lapse."
posure at any particular time is came persuaded that we had
.

ger

Prospect of Chronic Inflation
And Its Impact Upon Insurance
the

question of inflation, they
be explored at this point.
The most serious aspect of in¬
upon as probable. Under the terms
of my assignment, however, I am flation, creeping or otherwise, lies
obliged to discuss the effects of in the frustration of well laid
creeping inflation on insurance if, plans which it inevitably entails.
in spite of what I have said, it It is the proud achievement of the
•should in fact occur. In doing so life insurance^ industry to guar¬
-It is necessary to differentiate be¬ antee security. There is no fore¬
tween the two main branches of seeable possibility that the life in¬
the
insurance
industry. I turn surance industry will fail to meet
the contractual obligations which
€irst to life insurance. :U:
otherwise, is in
should

and

inevitable

no sense

not

even

cannot

looked

;;
it

Life Insurance

contractual

this

But

assumes.

obligation assumes, on the part of
The life insurance industry has both buyer and seller of insurance,
relatively little to fear from in¬ the delivery of values approxi¬
flation so far as concerns their mately equal to those existing at
financial solvency. This is because the time of entering into the con¬

...3.-

the

fact

that,

liabilities and assets

'i,

and

these

ex¬

realized lies in the threat of infla¬

pressed in terms of the current
monetary unit. If the monetary
unit

depreciates

The one possibility that
expectations will not be*

large, tract.

both

are

purchasing

power, the loss in the real value
of assets is paralleled by • corre¬

tion.
Would End the Insurance Industry
The

only significant obstacle to
the achievement of the basic goals

much greater.

reached economic
maturity and
stagnation was our lot.
The current fatalistic belief in
The assets and liabilities of fire
insurance. Premiums for fire and chronic inflation is of a piece with
and casualty insurance companies,
casualty insurance are on a more these earlier fallacies. The reasons
unlike those of life companies, are
realistic basis relative to exposure for believing that inflation is in¬
not tied to the monetary unit in
than is the case in life insurance. evitable are no more persuasive
a
fixed relationship.- This fact
The insurance business, par¬ than thd reasons
behind
those
makes possible a distortion in the
other views seemed at the time.
balance between assets and liabil¬ ticularly the life insurance busi¬
I
suggest that they are equally
ities such as cannot occur in the ness, is a long-run undertaking.

They do not have
cushions of comparable magnitude
to the mortality cushion in life

Fire and Casualty Insurance

♦..

of life

case

liabilities

This

companies. A disturb¬

the

ance

relation

would

of assets

tend

sincere belief that

tion after World War I. But such

creeping

otherwise,

inflation,
inevi¬

was

creeping infla¬
a steady rise in
indemnifying the in¬
sured. Fire losses, automobile re¬
pairs and the like would reflect
the rising costs of replacement,
materials and services. The pro¬
tection
afforded
by
deductible
provisions would be reduced as
higher and higher costs pushed

Continued from first page

tion would lead to
the

cost

and

claims

See It
Democrats

the

in recent years.

What Is the Situation?
It is

earnestly to be hoped that the rank and file have
a better
understanding of the present money market sit¬
uation than some of their soi disant spokesmen in Wash¬

that the rise in costs could be off¬
set

ington seem to have. The money market is not particularly
tight and interest rates are not exceptionally high, except
when measured against standards set up during an era
when the leaders of the people believed that virtually
all the economic ills that beset mankind could be avoided
or

believe that" life insurance

would

adjust

modest

costs

-continuing
1

the

rise in

year

able

prices of

which I

but
say

associ¬

ate in my mind with the
expres¬
sion

"creeping inflation."

With¬

out

seeming to condone "creeping
therefore, I conclude
lhat it constitutes no significant
threat to the solvency of life in¬
surance companies.

inflation,"

different

creeping inflation
would

ance

sori

effect

life

renewable

cost to the insured
force

insurance

notable

other

some

success.

This

call

II.
for

ment in

would

Whatever

could
the

possibly

as easy to borrow; as it was *
and it is certainly more expensive' to bor-'
higher rates, particularly wheri thqy have,
to be paid by mortgage borrowers oh new h^
difficulty of various people in
partifcu-"

larly when they liajppen to
aroused ntrmeTdus politicians and

some Aft tlieir Aonstit-^
uents.lt is, of course, easy to put the onus of the whole
situation on the Federal Government, And include there¬

with the Federal Reserve authorities,.and

that is precisely,
opposition hopes to do in-an effective way* at the
hearings now being conducted by Senator Byrd's com¬
mittee—although we doubt very much whether the Sena-; >
tor himself thinks of the situation in. quite such simple
terms. The danger is that in a committee room where so
few .understand these matters, and so many understand
ordinary political strategy so well, the root causes of the
present situation will never come effectively to light, and
ground will be laid for various unsound and harmful at¬
tempts to alter a situation which is not pleasing to the
politicians.

the

loss

Not

casualties result¬

of
up

situation
the

would

rapid

turnover

assets.

tendency for assets to

appreciate is to be expected. The

Credit is

German

experience under extreme
was
that
ownership
(common stocks) did not
keep pace with the rise of other
prices. There would undoubtedly

generations

greater tendency for them to

however, under creeping in¬
flation.

upon

tendency for

claims

reduction in

some

occur

because

the

see, has a greater stake in the
avoidance of inflation than the in¬
surance

industry.

The

possible

lection and training of personnel
qualified to engage in this type of

combat
At the

investing.

industry

end that

In this process smaller
companies would find themselves

may more

rise

and
same

can

control

effectively
danger.

that

time, mo

in this

one

afford for

one

mo¬

ment to accept the thesis that in¬

flation is

,at

some disadvantage, compared
.with the larger and more diversi¬

inevitable,

even a

of inflation so moderate
called "creeping";

degree

The remarks of President Eckar
of the Metropolitan, Life
Insurance

bourse, many problems would be
raised by the shift in
emphasis on

One

might

same

expect

—and the

these, of

Such considerations
course,

are

highly

The

con¬

sociate
,

few

the

rising cost of living
sinister moral deteriora¬

tion which

with

have learned to

conditions

this

of: infla¬

are

life

"Everyone agrees that inflation compani^ ill - that«their contracts
problems relate'Only indirectly to in the long runls bad for
all seg¬ relate to a much shorter period of

people

they have.
Borrowing

result is that too many go

price of money (interest rates) moves up just as the price
of corn or wheat would move up when more buyers than,
sellers enter the market. It is as; simple as that. Of course,

as¬

thes$

sort of

into the market di¬
indirectly to borrow for such purchases, and too
go into the market to place funds in investments of
or other sorts. The net result is inevitably that the

rectly

and could easily be
counterbalanced by other factors

and the

same

matter for those who

trying to buy both the house and the furniture
automobile arid all the rest—that is, too many

Too Much

jectural
such

fewer

claims would arise under liability
coverage.

furnish much the

the house. That is

in relation to what income

direction.

that

fond of semantics. The fact is that too many

are

have been

employment and
high, even hectic, level of
business activity afforded by ris¬
ing prices would presumably tend
a

■

the house itself and

the-.pprt of life-insurance com¬ Company in his latest annual re¬ tion.
v:.
away "from,their traditiori port bear careifol
ponddying in this }
-companies
©f. guaranteeing an
5
-J
w
absolutely asf jeonnection^ ; > * *
more favorably situtted than
©ured fixed
Sirice
panies

last

stimulus to full

operate in the

today and interest rates are

definitions of "saving" and "investment." Practically

satisfaction

insurance. The

scarce

speaking, it comes out at the same place either way. A
man
may be "investing" or he may be "consuming" when
he buys furniture for his new house which may well out¬

Another possible offset might be
a

relatively

relatively high today for a very simple reason. Too many
people want to spend more than their income., One may
say that there is not enough saving, or that there is excep¬
tionally large demand for investment funds—depending

do so,

can

corre¬

addition,

fairly

rightly pays
in value of assets would discour¬
industry.
age such practices as the setting
No type of business, so far as I
of fires to I collect

danger of inflation must con¬
stantly be kept before us to the

long periods of
fixed monetary

Because of their long established
practice of investing a substantial
proportion of assets in equity se¬

commanding

over

which the public now
to the life insurance

upon
invest¬
officers and administrative
problems connected with the se¬

companies.

what the

inflation

eliminate it.
a

than
di¬

still, it is certainly not

unit, there is a constant flow of
funds in and out which permits a

by these
mitigate the
the damage, nothing
be

least of the

respect built

ment

fied

time in terms of

few years ago
row now. These

done

was

ing from such

undoubtedly

with

the

otherwise to

seriousness of

stocks and other

equity
securities,
sponding
burdens

means or

greatly increased invest¬
common

seem

acute.

ing

War

frustration of expectations through
inflation would again become

technique for adjust¬

benefit payments upward in
of rising prices would be en¬
couraged, as it has been encour'aged in the period since World

insurance,

assets tied up for

people—to borrow freely at hardly

favorable than that of life compa¬
nies. Instead of a huge volume of

way of acquiring permanent
insurance, but then the problem of curities

case

only

Annuity Association has already
pioneered in this country with
such

greatly

abandonment

the stimulation of

interest in variable annuities such
as
the Teachers'
Insurance and

would

thus depriving individuals of pro¬
tection in later years.
Ordinary

insur¬

insurance

term

by the simple expedient of enabling people—

nominal interest rates, 'if-

sav¬

only imperfectly solve the prob¬
lem. The rise in premiums at more
advanced ages would increase the

cured

all sorts of

by inflation is through the result-^
In some respects, on the other
ings element. Much greater em¬
tng increase in Costs of operation.
phasis would come to be placed hand, the position of fire and cas¬
Even here, however, it is reason¬
upon
term insurance. * Resort to ualty companies would be more
able to
management

ticians

substantial

least

ought to be possible to find something to which the poli¬
can attribute most of the ills, real and imaginary,

above the

company

as good at as the Eisenhower
firm central bank policy which
Democratic leaders as a rule avoided sedulously, it
were

regime has been, and

rupted

which embodies

...

from the fact that

by economies of operation inwould not be bank¬ table. It seems to me that it would eluding automation, electronic
since claims, being ex¬ be morally incumbent upon him to computers and other mechanical
pressed. in the same monetary advise prospective buyers of in¬ aids.
unit, would depreciate pari passu surance that beneficiaries could
Companies would be plagued as
not expect to receive back values
with assets.
they always have been in periods
r
The possible danger of losses comparable with those indicated at of rising prices by delays in get¬
the time of the purchase of insur¬
on assets through
ting rates adjusted upward to
default, though
ance.
It is true that part of the
never large
in well-run compa¬
higher levels. While the author¬
value of the monetary unit would ized
adjustment in rates might oc¬
nies, would actually be less in a
be eroded away during the life of
casionally more than compensate
period of inflation than in other
the
contract
so
that
premiums for the rise in
periods. This is partly because
costs, such a situa¬
such periods are likely to be times themselves would decline as com¬ tion, in the face of continuing in¬
of active business and partly be¬ pared with what was originally flation, would presumably be very
cause inflation would
involve a planned in terms of actual value. temporary. It is reasonable to sup¬
lightening of the actual burden on Nevertheless, beneficiaries would pose, however, that with costs ris¬
be receiving less than was origi¬
those
to
whom
the
ing steadily ways would be found
companies
have
,lent
money.
For
both nally contemplated and less also, of adjusting charges with less de¬
by and large; than the values lay than has been
reasons, the risk of default would
customary wh^ri
which they had surrendered.
be diminished.
creeping inflation was not the ac¬
I ■
'
A partial relief for this situaThe pfincipal way in which the
cepted order of things
*
k tion would be to reduce greatly
financial position of life insur¬
the proportion of insurance sold
;
Questions Stocks as a Hedge
ance companies would be injured
•a

one of the reasons why likely to be refuted by the logic of
-!
long-term -perspectives on future eVents.

result

deductible minimum.
(It would
sponding decline in the real value
become
necessary
to raise the
the
life
insurance
of liabilities. A company could of
industry,
range of amounts which were al¬
conceivably become virtually then, is inflation. There is serious
worthless through the deteriora¬ doubt in my mind whether the io v/ed for as deductible.)
Internal costs of operation
tion in value of assets which were responsible life insurance execu¬
fixed
in
monetary terms.
This tive could justifiably continue in would tend to rise for similar rea¬
It is by no means certain
business as at present in the face sons.
came very near to happening dur¬

ing the period of German infla¬

fairly

among the offenders 3s theFederalQchrer£onent» li
np£
borrowing as much on balance as it.wAs at one time*, but it is spending a great deal toe much (buying goods and serv-

Volume

185

Number 5650

The Commercial and Financial Chronicle

(2997)

ices), and in order to avoid borrowing is taking far too
much from the taxpayers who themselves are likewise
trying to buy more and more. Then there are the states
and local units, including /'revenue borrowers." This is
the
;•

of the current

essence

"inflation"

and threat of

in-

attention to equity

financing. "To¬
day's high level of taxes precludes
any
great degree of expansion

What the Federal Reserve authorities have been

doing

Bank and Insurance Stocks

from

internally generated funds.
Further, more loan applications

are

rejected

cient

flation.

because

ownership

insuffi¬

capital

with

By ARTHUR B. WALLACE
,

which to support borrowings than
for any other reason."

This Week

is by and large to decline to make good with arbitrarily

posite of that followed for
New Deal and Fair Deal

many years through the
Neither the Federal Reserve

era.

system nor the commercial banks do or can enlarge the
supply of goods wanted by the public. For either of them
simply to create the funds with which the public can try
to buy what does not exist would be on a
par with the
greenback program of the Civil War.
It

largely this fund creating

of these

program

New Deal

days—and, of course, of the war years, which
complicates the present situation and renders it possible
for inflation to continue

■

it is

now

doing despite central

bank

policy. There has been but little increase in the vol-'.
outstanding credit during the past year or two,
but Dick, Tom and Harry have
large, or relatively large,
funds on deposit in the banks as a result of
prior credit
policies. If they choose, as they have of late chosen, to
make

active

use

of these cash resources, the

effect

the markets is about the same as^an increase in the
supply of money. What is known as the turnover of de¬
mand deposits has risen by
something like 10% during
the past year and a half. This is the
equivalent of a rise
of over $10 billion in demand
deposits or over $13 billion
upon

•

in money

supply if currency is included.
; The remedy for current difficulties is obvious. We—
of us
must begin living within our means.

all

Most

—

seek

fear loss

Thomas >W.

groundless,
speaker.

dispersed, control
with

fraction

ship. Preferred
mon

stock

■

••

controls is the

/
*

answer

to the small businessman's

real

answer

tion

lies

the

agement.

management

than selective

rather
trols

financial:;

the

answer

credit
the

con¬

small

businessman's

the

tent

three

available

service arms, the

annual

what

forum,
held in New York City June 3-5.
top

Mr.

management

McMahon

idea that

money

challenged the
is tight because

of arbitrary attitudes on the
of

the banks

serve

Board.

pointed

the

part

Federal Re¬

Money is tight, he

because "too many
people have been trying to fi¬
nance
too many projects at the
same

out,

time."

Selective

instead

review

his

financial

against

what,

the

spot

been

cepts to get
small

was

present."

business

"there

Then

and
is

"visit

program for the future.

many

small

medicine

the

can

pitfalls

your

This pre¬

help avoid
that beset

One of the biggest pitfalls, ac¬
cording to Mr. McMahon, is losing
business, but Mr. McMahon de¬ sight of the importance of cash.
clared, "I would rather put my "Keep in mind that it is cash, not
faith in the objective materialism inventory or receivables, that pays
of the market place than in the the bills.
If additional sales vol¬
subjective idealism of a supreme ume can be gained only by carry¬
economic authority, however be¬ ing slow receivables, the prize is
usually not worth the game. Avoid
nign."
Small businesses that are good an excessive investment in inven¬
credit
risks
can
get
sufficient tories. The moment a company's

funds

into

constructive

for

small

purposes,

according to Mr. McMahon. "Gen¬

inventories exceed the amount of
net

working capital, cash and

credit

re¬

company

can't

that

straps

How

limited

can

this be done with

manpower? f<There is no

...

•

•:]

not

year,
fare

the
so

with

would

case

able

reasonable

bank

look

certainty

some dividend increases. Where
the income from the bond is
fixed,
that from the bank share is not.

Direct cash increases and indirect

among
years.

the

volume

sales

Com¬

finance

have

been

numerous

the leading banks in recent
The indirect increases are

000,000 above May, 1956.
Indeed, the newspapers and fi¬
nancial papers have been
running
reports of items affecting interest
rates

and

their

influence

inflationary trend,

the

vice

versa.

The "American Banker" of June 3

reports
this

that

year

trillion

lion."

The

told of

bills

"spending by check
reach $2.3 to $2.4
last year's $2.2 tril¬

can

versus

"Times,"

June

issue of 91-day

going at

Treasury

average

yield of

the result of stock dividends and

alone."

being

"Times"

commercial paper dealers had ad¬

the

shares, in effect

new

Also in that issue of the
it

noted

was

cash increase for the investor who

vanced their rates by

holds

Mr. McMahon advised.
flexibility

3.404%.

rate

boot

age

to the stock dividend.

Jr.,

some

% percent¬

point, the second such increase

in two weeks.

And has not Harry V. Keefe,

that

;

,■

-carefull to sell only securities that
can be redeemed
by the company,

done

that

the

their

State as demand folr
brought out that using the aver¬
age
per
share earnings of the Credit rises. Group [New York
State Bankers Convention] saya
Tucker,
Anthony Index
(years
1.947-49 equal to 100), earnings for loan charges of Federal Reserve
1956 on the banks in the Index and members should go up."

one

the surest

lack

and

man¬

managerial

over-all

perspec¬
....

bank

concerned?

59%.

The 30

and

most flexible

for

small

source

business.

avoid seeking a loan under emer¬

warned,
a

conditions,
establish
banker

need for money

the
speaker
relationship
long before the
arises.
a

the

20th

had

has

"Money is reported tighter than

ever

were

"Times"

these head and sub-head lines:
"Rates Too Low, Bankers Assert."

are
holding
satisfactorily as far

"growth"

The

banks

end

stocks

the Dow-Jones industrial average

principles, apply to in,, the same year had a rise of
borrowing, the most com- 58%; 17 selected utilities 53%.

capital

with

excellent job of proving

same

in this

The "Herald 'tribune," June 16,
headlined

article, "Short Term

Funds' Rates Still

,Rising," It ob¬
was just two years
this month when the Treasury

serves

that it

to point out
dividend rates
averaged in 1956, 42% higher than

ago

in 1951; the Dow industrial aver¬

points in the period.

stocks 36% higher in the same
period. All of the 22 stocks in the

Yes, bank earnings are on the
increase, and as their rate of in¬

Mr. Keefe goes on

that present bank

age

bill rate, now 3.404%, was

1.39%;

it has climbed two full percentage

has

been

Tucker, Anthony Index increased

crease

their

rate of improvement in book value,
we
will find their earnings on

dividends

since

four

1951;

stocks of the Dow group are now

Philadelphia Securilies
Association Special
Summer Meeting
of

PHILADELPHIA, Pa.—Officials
the Burndy Corporation will
host

members

the

Philadelphia Securities Associa¬
tion at a special summer meet¬
ing to be held on Monday, July 1,
in tha Mirror Room of the

wick

Hotel

War¬

p.m.

Burndy Corporation, with head¬
quarters at Norwalk, Conn., is a
leading manufacturer of electrical
equipment for the public utility
and

industrial

William

Webb

DeHaven

Townsend, Crouter & Bodine
is in charge of arrangements for
the meeting.

Coburn

Middlebrook, Incorpo¬

rated, 75 Federal Street.

greater than the

paying less than in 1951, and five
have not upped their dividend

book value at higher figures than

rates.

date last year.

bank

least

earnings

12%- ahead

are

running
1956,

average,
and dividend pay-outs
are
low in relation to operating

they

were

the

June

quarter-

With Merrill Lynch

/ '

•

(Special to The Financial Chronicle)

CLEVELAND, Ohio — William
expectation of further F. Crabbs is now affiliated with
logical.
Within the Merrill Lynch,
Pierce, Fenner &
past several weeks both First Na¬ Beane,
216
Superior
Avenue,
tional
City and Bankers Trust Northeast. boosted their cash rates, and J. P.
earnings,

increases

Morgan & Co. declared a 16%%
stock dividend, in effect an in¬
crease of that amount in cash, as
the rate will remain at the old $10
The

Prescott Adds to Staff
(Special to The Financial Chronicle)

CLEVELAND,

Ohio—Lawrence

H. McGrath has been added to the

figure.
course,

field.

Mr., McMahon also suggested
that small businessmen give more

ahead

Any securities sold should fit
in with the long-range plan of the
Maximize

that

mercial .and

maintenance of the old stock cash

growing by its

measure

ness.

the

stocks

increases

in quest of ceivables are insufficient to cover
up to the current liabilities."
The
small
businessman
also
tests of the market, it is because
With Samuel & Engler
it is not deserving of credit in should avoid excessive investment
the first place. Money is always in fixed assets, the speaker recom¬
(Special to The Financial Chronicle)
available
to
the
businessman, mended. High fixed costs tend to
COLUMBUS, Ohio — Harry F.
small or large, who follows sound increase
the
breakeven
point; Hamel is with The Samuel &
financial management practices." they may become burdensome in
Engler Company, 16 East Broad
Managerial
inexperience
and periods of declining sales volume.
Street.
lack of forward planning are the
And, he urged, maximize flex¬
"The ability to change
principal reasons for business fail¬ ibility.
pursue
new
product
ure, the speaker declared. Small direction,
With Coburn Middlebrook
business, he advised, would do lines, diversify, retrench, in fact,
(Special to The Financial Chronicle)
to follow whatever policy the oc¬
well to imitate the sound financial
casion dictates is the keystone to
BOSTON, Mass.—Paul F. Schelfmanagement practices of big busi¬ success."
haudt
has
joined the staff of
erally, if

does

least

thriving and profitable business as
against owning all or nearly all
of a relatively static business or
one

ported

to the tax

play

business."

quantitative credit controls might
channel

investor

better^ off in the long
run, from both a business and a
personal
standpoint,
owning
a
significant minority interest in a

gency

should

condition

planned

even

rate of about 3%

would be far

ex¬ .mon

banker and discuss your plans and

ventive

con¬

to the typical
is
that
he

tive."

better way to plan for the future
than to understand the past and
the

across

businessman

all

accomplished

variances:

close to

well.

foresight

with his accountant every month,
Mr. McMahon advised.
Review

has

nancing, Mr. McMahon said. "One
difficult

out*

papeir
collector; and as the economy is outstanding, countrywide, was $2,*
experiencing an inflationary trend 728,000,000, an increase of $110,-*
pay

bond

cision

banker, the law¬

yer, and the accountant."
The small businessman

2 of the 5%

equity fi¬

ifestations

answer,

financing problem,
Thomas W. McMahon, Jr., Vice-.,
President, Chase Manhattan Bank,
New
York, told
the
American
Management Association's general
management conference at their

he winds

problem of estate taxes Is

most

this year, we have the two main

bond buyer goes into the

must

agement decisions."

the

were

for, say, a 5% return, as¬ contributing factors present.^Qn
suming he is'in the 40% tax .the same page of the "Times'* Was
bracket (and in these days that is an item stating that the Federal
not a high bracket, by any
means), Reserve Bank, New York, had re*

pursued, and if the stockhold¬
are kept informed
as to the
whys and wherefores behind man¬

Loans to business

market

ers

for

19th.

earn--

running higher

when

man¬

Stockholder: support

argument

the

stocks, there standing to $12,081,000,000 at these
shifting of funds from the banks, compared with $10,209,000,*

some

ques¬

are

The

weekly borrowing figures for the
ending on Wednesday, the

week

latter to bonds. But does this get' 000 a
year earlier, an increase of
the bondholder anywhere?
over 18%.
As the average rate of
return on loans is
Heinz Biel has pointed out that

com¬

assured if management is capable
and aggressive, if sound policies

another

face

loans

"These

control

ability

the

not as a desperate mea¬
sure, but when things are going
well; "making it an 11th hour de¬

financing

but much can
gained by using to the fullest
easy

the

"Times" of June 21 published the
•

the

with yields of bank

just techniques, however. The

are

The
-.

be issued.

in-

owner¬

nonvoting

can

the

be retained

total

markets

ings prospects of these institutions. $527 million
among the major New
Some explain the paradox
by say¬ York City banks, the largest in*
ing that when high grade bond crease on record. This increase
yields get more or less on a par J brought the total of

carefully

money,

problems. Offers advice on how small firms can obtain needed
capital, including recourse to sale of equities, and singles out
managerial inexperience, lack of planning, and faulty financial
condition as principal reasons for failures of small enterprises.

Better

can

Bank Stocks

big puzzlements of

securities

stocks

This fear is

according
equity is

the

with the exception, of course, of
common
stock.
Raise
equity

McMahon, Jr., Vice-President of the Chase Man-

hattan Bank, correlates sound financial management with a
small firm's ability to obtain funds, in denying selective credit

•

control.

—

different price action of the bank

businessmen, Mr.
said, are reluctant to
equity capital because they

company,

Analyzes Small Business Financing Problems

the

small

McMahon

ume

One

Recommends Equity Capital

created funds the

deficiency of saving or to provide funds
freely so that the public could try to buy more than was
being earned by production—and, of course, to take care
not to
encourage the commercial banks from doing some¬
thing of the sort. Its current course is precisely the op¬

higher earnings will, of staff of Prescott & Co., National
come from a combination
City Bank Building, members of

increased

loan

volume

higher rates at the banks.
of

volume

the New

loans,

NATIONAL

and

As to

BANK

ef INDIA, LIMITED
Bankers to the

the New York and Midwest Stock

York Exchanges.

Government is

United States
Trust

Company,

Kenya Colony and Uganda
Head

Office:

'»

West

London, E. C. 2.
End

(London)

Branchl

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized Capital

Paid-Up
Reserve

New York

Bishopsgate,

Capital
Fund

£4,562,500
£2,851,562
£3,104,687

The Bank conducts every description of

banking and exchange business.
Trusteeships and Executorships
also

undertaken

Bulletin

Request

Laird, Bissell & Meeds
Members New York Stock

Exchange

Stock

Exchange

Members

American

120 BROADWAY,

NEW YORK 5, N, Y,,

Telephone: BArclay 7-3500
Dell Teletype—NY 1-1248-49

(L. A. Gibb^ Manager Trading Dept.)

Specialists in Bank Stocks

(2998)

The Commercial and Financial Chronicle

Continued

from

page

vVr'■,v'*them.

They

negotiators

£1

■

-<■

InA
llftV

\AH71ttfT
IrVlwlIllJ

Nopnc
WVvU»

I AllAllATI
AUAftlWVU

Thursday, June 27, 1957

the President when he points out becoming
that

rising

payrolls

and

That

procure-

traffic

must

will

stretch

products

that

bought

can

government
revenues.
It
is
banks proclaimed by top-business execu-

that

bear,

credit

^rather^ than^ f'an- prices, and that if this

all

tives

these

and

process

they tell stockholders
public that the upward

the

creep

Let

of costs disrupts their order-

inadequate savings base for at the

•

....

„

—

complaining bitterly of the burden still is sharp division ot opinion, the credit structure, the Federal
of "War taxes," jnoved Congress both expert and popular, as to Government shall step in with a
to pass legislation in the spring of where we really stand today, and
spending program that will pre1948 that reduced revenues by an what are the foreseeable conse- vent
any
slowing down for the
estimated $5.3 billiop.
On this quences for the future. On the making of adjustments to more
action, the President, in his next one hand, those who derive from sustainable relations. They look
Economic Report, commented:
;
the events of the last three dec- also to the Federal Reserve to
"The

deflationary

recent

<will thus

be replaced by the Inflationary influence of additional

expenditures
reduced

burdens

tax

Even

are

the midst of

^way of

accumulated

clined,

that

and

neighbors,

has de-

savings

living

many

^nnsm-shinof
sponsorship ot

their

trace the

process.

continuous

Greenbackism

at Harvard University and not
few-protesaonal emnomists

the

raised

i-VfJ.'.
From the Market

inflation

where

the

issue,

seeds

must recoup higher costs by rais-

field

ing prices.
Management installed two

mostwide-

creeping inflation

scrutinize
^

]jdes

an(j

price

administration

market.

setting by which wage rates would rise
in the automatically in accordance with

should

j„ the ami are just what the doc- the buck

sta£le Pj;osPentyMr.
Truman

'.PP;,

logically

Ration

very

mechanisms escalator clause in wage contracts,

the

The proponents of this dogtnne
argue that these perpetual shots

passing a theoretical factor of productivity

stop

to the President, Secre- increase

or with a rise in the
tary of the Treasury, the Congress cost-of-living index. The other
was expressed in the principle

of sustained and

era

If labor boosted

wages.

assess soundly the tricky gadgets on the engine .of
for curbing it,- we inflation. One was the two-phase

requirements

must

]•*£

boom

that

ability to

wages, management argued that it

economically

are

labor argued

the'companies

higher

pay

crux

the

prices

this gave

salaries, are actually worse
"W,. and «hejr; dismiss quite and the Federal Reserve system
off than they were a year ago.
unions and P™*•«*a great cavalierly the possibility that the for most if not a„ of the
lespon_
The failure to
control inflation Part
°
lnfl3t,°"
drug halnt
will
ever
sjbmty for sowing the seeds o(
effectively in the past makes it whilee promineint e;xe cut
j*
master and destioy us. Thus the jnfiation through fiscal and moneincreasingly urgent that we adopt most leputable business assoua- whole controversy has come to t
It ls much nearer t0
vigorous
measures
to guide us tions■P««ch against it. One fam center on the new catch-phrase the
truth
to
sa
that
the
reaI
safely from the uneven postwar oiganizabor.wenly s"PP°fts
creeping inflation
or
mild in-;.
of
jnflation
in
.

march

upward

clearly marked
Both manlabor found themso

ly sown, and to

FlStebSr tor orders for an enterprise econ-

fixed

gains
'

disruptive inflation

not

off into annual steps.

aggres-

To get down to the real

in-

wages

nickels."

Inflation

;

when

group,
nominal

wooden

"Creeping Inflation"

Pro-

I ro
lessors Slichter, Hansen and Har-

his a

pensions

the

A9 18?f 'fh *"1aon- "****
S S drive of the 1890 s.

the dignified

his

Sfective

present prosperity,
the average
American sees that the value of

agement and
for selves in a sellers' market, with
they lament money demand tending to outrun
"are paid in physical supply.
Jf management

enhancement

that

ammunition to this Battle

It's been dandy for 12 years; lets niscent

most strategic spots in

dustry following the most
sive

Pfoval of such inflation as a way Gf the Price Bulg^ through a conof life for enterprise capitalism, gjstent "soft money" policy remi-

the part of con-

whose

sumers

and ap- furnish

of ades or so an acceptance

influence

government cash surpluses

become

simple steps in
Since 1.945 we have
had 11 "rounds" of wage increases
that

prices
.

has

in grave danger

The Engine of Inflation

when

price makers must charge all that to

.■<the

substantially larger than expendi- inflation is that they are under the
lures.
It is important to maintain impression that they are sowing
this favorable balance as long as goodly
plants

•

"engine of inflation."

what

bacon for their boys after every ment costs make it impossible to recent years or is
lriP to the bargaining table, that keep government spendings down of becoming.

that wage
bring home the

argue

must

that prices should be high enough
to largely defray the cost of plant
betterment and expansion without
much recourse to the securities
market.

postwar
united States has lain in the mar-

It.raises a two-pronged

Unionism, not to be outdone as
designer of inflation devices,

tnr
nolittcil ISSUe: (a) got up on its £°"}l1n"e kef place—in the institutions and got court recognition of the theory
}
to creep or
hind legs
prat£ices of ]abor union bargaln. that labor is exempt from anti.J1.
.?
in
r"1 the economic w'th us, of even a jng anfj corporation [nice adininis- trust law, and developed the techmrUn 3 ^ implact and (b)
rnmnlacpnt
Over agaunst the compbcent in- Is
tration
F/Scat
b
•
nique of
mnre

recom-

members ang e tor moie political

mended at this time restoration of

certain

repealed taxes and proseveral kinds of selective

posed

controls but, with equal logic, let
this
tax
recommendation
lapse
when

business

in the

spring of 1949.

downward

turned

templating'X
not only the

history

the

recent years

Tax Savings Self-Defeating

forcing maximum

other

tion

nleksant
pleasant
States

United

but also the record

spenders
best

own

were

defeating

interests.

Con-

already had full employment, war savings, and credit expansion to give them purchasing
power in
the market.
The tax
sumers

times aggravated

inflation:

wage-price

As to the first of these questions, I am not content to say that

XiiiVv

though

and
ii

consistently

h'»«:

and

teaic ooint in business

Hpph

as an

,"e the
Secretary

that

make

inherent

nLin<sor>hv

that

sure

danger

can

such

met

nf iho FpHpimI

^
SSl

simply

enabled

dollars for

equal rate.

and

S^ta^ Undter not been proved controls have
These, practice and
the Treasury, the overcome.

business leaders, and professional

this

latter

correctly as to its essentials even
though there would, of course, be
plenty of differences or shadings
of emphasis on details. Being realistic, they would recognize that
the developments of World War
public II made it not only undersirable

to bid

too

much

too

fast."

The

refuseq to let fiscal restraint curb
inflation.

that

should

back

limit

the

demanded

straints

removal

they

the

instalment

refused

the

and

re-

higher price and income level.

considerable

period
of internal
market adjustment was what was
Regulation X and kept the inter- needed to digest technological ana
est rate "pegged" to 2V2% until financial changes which had taken
1951. Naturally, the seeds of in- place and to work out wage-priceulation sprouted fast.
profit
relationships
that
would
on

credit

gage

Regulation

mort-

and

has

Slve workable conditions tor full

curbing

emPl°yment, adequate investment,
prompt market absorption, and
stencterds of living rising in pro-

The present Administration

done

the

good deal toward

inflation
in the

sown

period.

whose, seeds

war

and

were

early postwar

It has tenaciously resisted

p,%

rated

ndu«trial

reduction

fiscal and monetary policy in
dealing with the total problem of
inflation, and has urged the country not to expect Government to

ninneer
.

do the

nomic

whole job.

In various EcoReports and vigorously in

weaker

his latest State of the Union Mes-

he has pointed to the responsibility of business management
sage

and

union

labor

abstain

from

'sowing the seeds of inflation
expecting

Government

the pressures
w

We Ar<!

thus created.
1

But

the

injections of

price

fho+

nrf 1?
one reason
sowing

f
that

new money,

over

that

the

brink

everyone

agrees

must be avoided."

the

The

obvious,

for,

second

(2)

business
show

pro-business

doctrine

for

men

find

farmer

eseaTntinn

his

"n-ir-

nriees

mirt

government

hnv

of
po

snnnnrt

nronnrtionatelv

This

raises

turn

•

where

areas

efficiency

little

—

can

compete

question,
of,

proponents

however, that

in-

compounded year after year
builds up a surprisingly large

crease

Soon

total

impact.
As
Dr.
Winfield
Riefler, Assistant to the Chairman

Drices

of the dollar by about onehalf in each generation." Furtherpower

I take it

axiomatic

1946,

for

positive role of responsi-

bility

all

"to

the Federal

coordinate

plans,

its

Govern-

and

functions,

and

re-

[within a structure
free competitive enterprise

of]

sources

laration

scarcity area or whose organization gives them special bar-

with its needs and obligations and

gaining

national

power may

entirely

escape

burden and indeed reap positive gains, while the economically
any

bear a crushing load.
Infiation not only "grinds the faces"

l^on
pitfalls of the creeping infiation doctrine are proclaimed
by

construction

-various

buiiding

trade

out

makes

volume

and

wages

tend

paw

projects

keep'up

sorts

contractors margins

price

ma?kef

the

Government

promote

other

policy

essential

policy"

"consistent

—

considerations
—-

judg-

ment, reaffirms the Federal Government's primary obligation to
see

that

its

actions

from the letter carrier

pay

Cabinet

the

higher

officer, and paid
higher
prices
for

and

contribute

the soundness of the dollar or, in

conduce

and

.paper

printing

.to the

uses

extravagantly,

loan*

:when

artifiVlnliv

utilize'everything from jet planes

Those whose goods or services fall

theirmrices

erPnf<5

terms

which raised

accepts

ment

maximum
employment,
production,
and
purchasing
power." (I should add, however,
that the other clause in that dec-

this erosion

support

that

purchasing
power has a very uneven impact
0n different parts of the economy,
more,

t()

as purchaser and em¬
ployer in both civilian and miliattractive profits are an essential tary fields must pay competitive
ingredient of a workable price rates, which, in turn, are enhanced
system.
(4) I subscribe-fully to by the marginal strength of its
the declaration of policy in the own competition. Uncle-Sam has

(3)

Federal Reserve Board has Employment Act of

(°

formula

and explicit at the starts.;

practical working compromise is 0f fixed income and "sticky" in- other words, do not
a virtualiy stable price level, with come classes, but also impairs the disruptive inflation.

fiein

his

nrires—that

-iair field of no special favors, and
f°r big business in that large part
«miid" inflation seem agreed that oi' industry
and trade where it
a
2% rise in'the ge„|ral price ^ P™duce the best goods at the
level annually is acceptable. 'It is lowest costs.
;

apologists

rising productivity would be dis- weak

seminated to all consumers.

the

wiih

3fadvocate funds and
•
Those who condone or
G mflatK1.(i11
a way °f life
even capital formation.
our
stabilized price level too austere
The

the seeds of

The theoretical ideal would be a
moderate downward trend
of
Pri.ces by which the benefits of

inflation ASa,"St

JLSSt bPUtrr etthat thT,e
people go

and

offset

demand.

level should not be pushed

° greatly improved ana 0f

distributed purchasing power,
Some prices would need to rise
but others would fall in response
*° lowered cost and, or relatively

uea

been

repeatedly admitted the limitation sound wage structure and widely

and

^Ser^SSSf. Ti

■

areas

powers,

that
would
have stnl
improving productivity.
In put it; "Continued inflation, even
inflationary and has pursued [bis process, some wages which ^
could be controlled to a rate
a
tight
money
policy
that
is hacl n°t been the beneficiaries oi 0f 2% per annum, would by no
counter-inflationary. At the same ^'ar pressure would need to be means be mild. It would be equal
time, President Eisenhower has raised in order to bring about a to an erosion of the purchasing
tax

profit

> ^
haV to buy
ston, Vice-Chairman of the Fed(1) I am myself pio-labor, and *gj^d raises the ''parity" base on.
eral Reserve Board.
I. believe that ..every one of my
farm prices are to be sup"Once the community accepts professional brethren who seeks ported.
the prospect of continued inflation maximum wealth for the nation
Mention
of
the
Government
and begins to make its business must likewise be pro-labor since
nartv in fhe nmrL of inflation
decisions in the light of that pros- maximum material well-being for
"
t^rfirm mirl ot
pect, the infant ceases to creep, all who work with hand or brain .;^!'^"^
thpc f,niv n|™ ^t
It learns to walk, run, and finally is> by definition, the major e°d
.
•
1h
t~
gallop even though the gallop may that economics seeks to promote. ^,veV
metiK

price levels of 1939 but also quite
to let monetary restraint be used impossible in view of all the adcarry
it
consistently and effectively. They justments already made to a much precipice
Likewise,

their

and quote from Dr. C. Canby Balder-

fairly

group

Similarly the tax savings of
spenders enabled them
more vigorously for
equipment, materials, and labor. In the
perceptive phrase of the late Senator Taft, we "were trying to do
business

highest

and

Nor has the nattern of eost-nrice

Reserve

Chairman and Board of Governors we do not have convincing eviNow I am quite aware that apof, the Federal Reserve System, dence that we will have the alert- proaching ..the problem of mllaSenators
and
Representatives, ness and fortitude to use them to tion from this angle carries us into

the

strone-

'orISiv^^ S SiSm

offer

say

now

supply of goods that could not be;

they got

demand

est

astutelv

increased at

savings

wage

through

gains

strongest union at the most stra-

mone-

which both labor and
economists, both in Academia and Of their inherent limitations, I management are very sensitive.
in bank and corporation posts.
shall have something to say later, Hence I want to make lour i'unI think I can state the position Here I canned do better1 than to damental propositions very clear

them

fringe

failed to curb and

of these early thing to
episodes in sowing the seeds of not condoned and certainly not
inflation is that consumers and invited. It is superfluous to mentheir

other history has shown that inflation ^zed T tntain" "he aggfes- mar^S'thentinf^hese 'gMns
insidious danger, somethe other hand, content to
^H^'^atur^nd'^Ihe S orSeS; mark^** 1h^ou?hoi!5"
be feared and combatted, that
have control devices

The essential point

business

SS
fact mild?

pLnhmvpr

atow m

out

Verv

p0jne

cost-nrirc

biidept
+or

lor

noV

kU4
ures

aii

the

and

oasv-

rpcult?
to

government

auDarentlv

Deonle

thi^

hillinn

urograms

+ke

ha« nnintpH

how
svstpm

«£7l

established

ations
securitv

£f

Vlearlv

'in

nav

oner-

neressarv

for

-.Vpifarp

demand

?nmp
mpas¬

view

SrhW^of^«rS.icliZ

resources

The built

in inflationary

mechanism I have rie S
ll
^ be f!Averted
Itahili^ini
prosplrit? mechanism bv simu
cutt1ne S2 pillion S $6 biTlfon
w

We live in an age of Big BuSi-

fca^oThy^fesTb^ke°ep?

make its three big wheels mesh ing

tricks. Nor will it be done
machine merely by a continuance of the
of maximum efficiency instead of firm but flexible monetary adtogether

producing

Volume

185

5650

Number

ministration

Federal

the

The Commercial and Financial Chronicle

Re-;

System.'1'°v 7\T

serve

.President

Truman

fundamental
Economic
them

truths

first

his

is.

optimum

an '

these factors which

can be

ministrative

and

bargaining decith
t
in a
scientifie, splrit.
with
primary
■mam respons;billty for prices and, concern for the
well-being of the
.

Removal of emergency P"ce
and wage controls has restored the
:•

wages

business^ labor, tanners
consumers.
The Government

and

point" out

can

dangers

from

seen

: the perspective of the whole
omy, but the correctives must be

ml ,f

\Mc

mutfla,

wlth

and

k«

nannnt

hnr»«

ecob^,^

largely

applied

others.

Busi-"

ness"should "reduce "prices
snouia
lepuce piices

ness

possible

/ever

about
aoouc

,
•

the
me,

holster
bolster

increase

necessarv

neLo^sary ^nciedbe

purchasing

consumer

order

wher-

™
*
to brnig

production. For its
well

that,

latfor

the

countrv

snouia

flaws

needs ,reveal

themselves in
We must avoid the rimd

debentures
'

affer

Last

President Eisenbower spoke in like vein in his

•:

7'7avoiding

^ep0rt:,
burden

The

full

price inflation, which is an ever
present hazard in an expanding operating close to capaci-

economy

ty, cannot be successfully carried
by fiscal and monetary restraints'
alone.

place

them' would

this

invite

producing effects
and

functioning

burden
the

the structure

our

economy

which

might, in the years ahead,
impair the vitality of competitive
enterprise. And failure to accept
the

responsibilities

free

inherent

could

economy

lead

de¬

that they be assumed by
Government,; with the increasing

mands

intervention, and
that

such

sponsibility
;

to^reach

fair

are

;j7 community
'v

inevitably

agreements

wages and other labor benefits

that

freedom

Specifically business
leadership have the re

labor

and

approach

entails.

loss

the

well

rest

those

the

immediately involved.

p e r s o n s

Negotiated

-7

wage
increases
and
benefits should be consistent with

7 productivity

prospects

the maintenance of
'

2Ptio,l(?f.the
tha" 30

on not less
d?ys .notAce> a.s a whole

from time

'?!■ broad public interest in the prices
7 set on their products and services." (p. 3)
■'7;7/"/77;;77/ 7Curb

Cripple?

closing, I want to

word to those

•

great

optimism

idhg-run future of

flation

ply

say

just

in fact be curbed

can

sim-

swiftly by the Federal
Government by merely "turning
off the money faucet or reversing
the money pump."
In a certain

oremium nf

this claim is true.

sense

If the government

dropped half a
200,000 civilians
military and cut $8 or $10
billion
from
procurement
and

million

even

and

subsidies,

the

purchasing

withdrawn

thus

would

from

the

power
market

doubtless

preclude further
price rises. This would be equally
if

true

the

Federal

Reserve

sharply curtailed the money sup¬
ply through credit channels.
As
a
purely mechanical proposition,
prices and wages would have to
fall

have
to

volume

to shrink.

judge

'give."

system

would
to

you

direction

the

has

our

most

Personally, I suggest that,

with the built-in
tures

business

leave

which

economic

now

inflation

inflationary fea-

have, we could curb
cost of a depres-

the

serious

ernment

succumbing

control

spair.

not

philosophy of de-

It is simply to

n0tKilea?
^

t?1?

say we can-

Washington a

ft?

the Federal Reserve to

do it with

mirrors.'!" It requires that we ourselves

tackle

the

problem

together

with

Jr'A/gY*

Thev

its

statement

I accrued

ricant,

to the date of redemption.
also

are

redeemable

l n

Solomon Fab-

accrued

Direc¬

tor of Research

pursu-

the

JLmt;

i960,

gov-

going

are

the

J'.. A5,DUV- ?l

tional

Na¬

Economics

ol re-

demotion
; 7.
7/
7 The conversion price is $50

share if converted

per

or prior to June 1,
$54 per share if con-

and

verted thereafter and
to June 1

Dr.

there-

prior

1972

Bu¬

19 5 7

annual

S. Fabricant

report,

Financial

and

Day,

Re¬

Problems'of

the

and

the need to

.n^l torttud^to cwb mflation and let the system work?

ex-

from

sary

Group

general
to

rises in

funds

provide

substantial

the

sufficient

funds to purchase 300,000 shares of
the

company's

stock pres¬

common

1nteres[7vet JontFnued

neces-

debt

additions
the

and

debt

private

state

and

local governments, slight increases
in the money supply coupled with

Underwrite First Nat'l

ently owned by Penn-Texas Corp.,
at the price of $50 per share. The

larger increases in the frequency

City Bank Offering

purchase of such

rates of

special meeting of share-

holders of The First National City
Bank

24,

New York held

the

proposal

June

increase

the

capital funds of the bank by the
sale of 2,000,000 additional shares
of its capital stock was approved
by

record

353,724
shares

83.5%

82,080

the

voted

were

with

proposal

opposed.

number

total

of the 10,000,000

outstanding

favorv of

the

vote.

this

By
shares

only

action

$20

par

value will be increased to 12,000,000. Howard C. Sheperd, Chair-

of the Board, presided at the
meeting.
man

The

additional

offered

$60

shares will
share to

made

company

Fairbanks, Morse & Co.

South

111. The

sidiaries
in

the

proceeds

locomotives,
such
and

increased

not

ganization

long

private
known
for

pioneering

work

sale

and

products

water

systems

lawnmowers, and

spe¬

reserves

either

the

Hall

has
&

joined

the

Company,

staff

Inc.,

the

bank

directors

on May 21, payable Aug.
1957 to shareholders of record

East 55th Street.

dividend rate per share from $2.80

$3 per annum.

tion

the

It is the inten¬

Board

Directors,

subject to future earnings, to
tinue

dividends

increased

the

number

con-

$3 rate
of

snares.

June 28 to shareholders of record
june
24, 1957.
The rights will
if

not

exercised

before July 22, 1957.

eco-

impartial
analysis of the facts, in the public
interest.
Dr. Fabricant's report describes
the striking financial changes iri

United
last

States
40

economy

over

highlights

years,

Moseley Adds

32%).

Their

ings

from

the

some

National

Bureau's current studies.

The nation's wealth

Namara, Ji\ has been added to the
staff of F. S.

Moseley, 50 Congress

Street.

With Gage Wiley
SPRINGFIELD, Mass.
B.

—

tangible
businesses,

—

individuals,

goyf™'"e"t t,777^717
$1,340 billion at the end of 1955,
Dr. Fabricant says, reporting new
estimates developed at the Na¬
tional Bureau. Only about half of
held directly by

was

and

Philip

assets

(Special to The Financial Chronicle)

Steele is affiliated with

individuals

unincorporated

The

rest

businesses.

held

was

indirectly,

Gage-

increase

from

The

aSsets

the

GREENFIELD

PARK,

Bruns.

Nordeman
a

Pioneer

Country

branch

Y.—

Co.

end

intangible,

the

nation's

to about

figures, too,

1955,

are

These

gation of the postwar capital

Club

mar¬

under

the
the

Goldsmith, of the National Bu¬

reau's

research

Between

tional

1912 and

wealth

the growth in
assets

William Fuerst

William Fuerst,

member of the

New York Stock Exchange, passed

June 18.

1912

the

held

aries has been

banking

sys¬

by intermedi¬

declining, he shows,

while that of the insurance
system
been
rising.
Government

has

agencies with monetary, social inwhich js
—i—»- few

early

were

1912,

of all assets held

existence

-as

hold one-fourth

now

by financial in¬

termediaries.

Important

Unknowns

Are

Highlighted
In 1955, when the
economy was
approaching a $400 billion level in

national

output, total payments
during the year reached some¬
thing like $3,200 billion, Fabricant
says.
Of that total, the only set
of

current

voted

national

accounts

financial

flow-of-funds
A.

flows

de¬
the

—

data

pioneered by
Copeland at the Na¬

tional Bureau and continued
the Federal Reserve Board

by
can

—

yet trace only

Interest rates

about

half.

another blind

are

spot, Fabricant points out.
rent

statistics," he

not much

says,

"Cur¬

"provide

information

the

structure of interest rates and

se-

and

semi-processed

products

the structure of commodity prices
50 years ago."
He
also
points
to
the
huge
growth
of
public
and
private
pension funds, from almost zero 20
years ago to an asset total of $70

billion today. Little is known
yet
of their economic impact, but

they

still growing very
mentions

rapidly, and

important
that may be affected; not
only the well-being of the aged,
areas

but the rate and character of

sav¬

ings, the operations of the capital
markets, the distributions of in¬
come, and the size and efficiency
of the labor force.
He weighs the
dence

the

able, and

inadequate evi¬

question

business cycles

are

proposes

now

whether
manage¬

comparative

study

of cycles in the past
under the "new" economy.
The

relation

was

grew

price
trends, income distribution, capital
and economic growth is

^a"

intangible

was

Dr.

0.84 in

the

end

1955 the

tenfold,

greater,

Fabricant's

1955,

"The

question is

than theoretical

interest

underdeveloped countries com¬
mitted to policies of rapid growth,

and

to developed countries committed to policies of 'full' employ-

ment," he comments.

"Our studies

suggest that careful analysis of the
historical facts in a variety of
countries
discussion
its

might help to raise the
of

present

the

question

largely

above

speculative

na¬

Form D'Amico & Co.

and

Gold¬

The ratio

tangible

1912, and

thinks.

BUFFALO,

intangible, financial

even

and

between

level."

staff.

smith's study will show.

away

than

from the investi¬

•'

fi¬

total

$3,000 billion

double the national wealth.

has

office

management of Harold M. Schechter.

these

items,

came

ket being conducted by Raymond

opened

assets

bricant

nancial

Exchange.

13%

Including

New Quinn Partner

total

18%).

ALBUQUERQUE, N. Mex.—On

assets

assets, tangible and in¬
tangible, was nearly one-fifth (an

corporations and financial institu-

Building.

national

tions.

Bank

financial

1955

Fabricant

Complexity of Financial Structure

BOSTON, Mass. —John J. Mc-

all

(an increase from 27% in 1912 to

are

(Special to The Financial Chronicle)

will be issued and mailed

terminate

basic

New Estimates Show Increasing

F. S.

Bruns^ Nordeman Branch

building

prelimi-

its >Jcu,rity prices than did the wholeup
sale prices of a few raw materials

2587

July 1st Stephen R. Kirby will be
moie than $100,000,000
admitted to limited partnership in
Quarterly dividends aggregat¬
ing 75 cents per share were de- Quinn & Co., 200 Second Street,
clared
by the bank's board of members of tne New York Stock
1,

one-third

through a complex network of information,
This Wiley & Co., Inc., Third National termediary organizations such as

Company, of approxi¬
$33,000,000, or the unal¬

located

or-

CLEVELAND, Ohio-Mrs. Ellen

Trust

mately

achievements and work still to be

(Special to The Financial Chronicle)

capital funds of City Bank Farm¬
ers

materials

Eco¬

nomic problems, and for

the

from

$693,000,000.
include

factual

the

sale

profits of approximately $73,000,000, total capital funds will be
does

Research

McGhee Co. Adds

$200,000,000 to $240,000,000 and
surplus from $300,000,000 to
$380,000,000.
With,
undivided

approximately

nomic

the

total

Bureau

cial defense and commercial items.

organization in relation
a whole.

the economy as

institutions in the economy.
By
the end of 1955 they held
nearly

Morris

Piecemeal
investigations,
he
points out, will reveal little of the
meaning of such developments. He
urges comprehensive study of our

engaged

consumer

domestic

power

price

of the

concern.

National

and

principally

manufacture

matters

The

scales, pumps, electric motors and
generators, diesel engines, diesel

stock,

will

company

are

Chicago
its sub¬

unsubscribed

$40,000,000 will be
added to the capital 'of the bank
and $80,000,000 to surplus.
With
these changes the capital of the
bank

in¬
600

bankers

the subscription
share.

Per
From the

all

offices

Michigan Avenue,

McGhee

was

institutions"

executive

expansion among various

financial

its

purchase

May 14, 1957.

differences

turnover,

financial

has

with

offer

its

corporated in Illinois in 1891, and

1957.

shares
°* $60

by Penn-Texas Corp.
to the company, May 10, 1957,
which offer was accepted by the

held, of record June 24,
Arrangements have been
investment

pursuant

of sale made

all

per

shareholders on a pro rata basis
of one new share for each five*
shares

stock is

common

set

same

figures, Fabricant reveals the
increased importance of financial

He cites "sharp and widespread

supplemented to the extent
company

First Boston

the

surance, and lending functions, of

just released, Dr. Fabricant
of "important areas of ig¬

warns

norance

nary

tem

the

Position

iversity.
reau's

Relative

Intermediaries Are
Revealed

From

New York Un¬

per

after and on
1967,

•

share of common stock if converted on or prior to June 1, 1962;
$52

Bureau

of Economic

amount thereof, together with

Financial

con¬

omy, are rein-

are ais° reaeemaoie pursu

concern.

Changes

econ-

force d

Mnv 81

Warrants covering subscription

pec

cerned with the state of the

V.hLidfa7
The net proceeds to be received plore them before they turn into
hir the free way of economic life. Py dle
COmpany from sale of de- trouble spots."
The question is. Have we-ali the bentures above offered will be

sion.

This

the President and from others

' tnrougn May 61,
at decreasing premiums

thereafter•

thrnucrh

econ-

—

recession

and

restricted

part, at

/. crued interest to the date
the

for

free

our

headed by The First Boston Corp.,

who assert that in-

the principal amount thereof plus

made

time

Research and

with

and

stable dollar,

And businesses must recognize the

the

Professor of

risk

1958

thorough inquiry into
the nation's financial health, from
a

Pr?jjci*>al
ac-

now

January

Calls for

sinking fund commencing

]T«v"one nartv'thTnkVhp~"nuoh7"
? y ?
P
y tmnks he 0U8m

come

june

matters of

redeemable

are

r1 ?tHbbr inf7nce of what optional
7 d»c- June
finaire:: interpretations

in¬

accrued

institutions,

The

•'

and

flfj"

;

100%

^reTsure-won 'formes 7e7ing

Co.

woikabie 1959? and

due

terest.

workable

?7r7'/77\7m' DrewS!™*; omy.ia^'the; lpWen mid-sixties':'
':iledurtlonsSliv 10 We heafc s?tmuch about But the
reductions, that are necessaiy
nlneteen-fifties
first, and
nr<d1lcte'Wa72(nV
81)311 without
h?/7 ^ precipitating right
!"f!?tion
product..v(p: 20)••
•

debentures

1, 1972 of Fairbanks, Morse

,^aK1^S. revisions as naws or interest
'tiop

?^demands for excessive wage in-

But we

capable of

flexible system

revisions

refra^d f7m t0,g7
renain rrom
I have,

slmuld

^,iaige, iapoi

advantage

own

„ki'

new

s
:

ourselves

^a K8 continuousij

its

show

adjustments and

part,; must recognize that
high volume at low costs and low
on

that they stay answered

°?F; .dynamic world.

should

power
to f *
" Labort°r
Laooi,

their markets
tneir- rrtarkets.

such ways

subordinated

«Pv

52? ot _hope for pei-

ble

Body Warns of Trouble Spots

endorsing inquiries into nation's financial health, warns of
need to explore important areas of ignorance before
they torn
into trouble spots. Cites rises in interest rates,
large additions
to public and private debt, increases in
supply and velocity of
money, and differences in rates of expansion among financial

licly $15,000,000 of 5%% converti¬
June

Solomon Fabricant of National Bureau of Economic Research,

.
A
c Auyn & £0
Inc and as_
sociafes qn june fg offered pub-

tol.

fnr

Research

flffAVAil
11116160

116061111116$

balance

if.all the parties who make ad

Report.. He said:

There

subsequent;®ttaipe^°r at least approximated

every

(Tairhaitlrc II Arc A £ Pa
rdlllldllR®j IVIOlac Qt Uwi

*i°ns °f the enterprise market.

reiteratedv among

Report," and

almost

these

stated

source
in the voluntary wage6ost-price-investment-credit rela-

(2999)

rose

assets
to 1.28

according to

report.

Y.—D'Amico &

Co. has been formed with offices
at

282

gage
cers

Longnecker Street to en¬
a securities business. Offi¬

are

President;

Ralph
E.
Schuessler,
Chester
M.
Mazur,

Vice-President;

and

Louis

D'Amico, Secretary-Treasurer.

The Commercial and Financial Chronicle

Thursday, June 27, 1957

(3000)

preferred shares and is-,
Class B common
shares in
exchange for 98% of
Pacific Northwest Pipeline. As of
vertible

sued

Public

Utility Securities

Millions'

Preferred

together compared with the 1956 sales of
2.2 trillion daily.
El Paso has already signed con¬
through 98%

Natural

Gas,

60%
12

stock

second

Convertible

Paso

;VMv-

pfd.—,

Minority interest

—

194

Common stock™

with Pacific Northwest Pipe Line

(which it controls
equity interest) is now reported tracts with its southern California
to be the largest natural gas pipe customers for delivery of an addi¬
line
system
in
the
country— tional 200 million cubic feet per
though in point of 1956 revenues day and is discussing deliveries of
the
same
amount with
it would rank only about sixth about
Pacific Gas & Electric. The pro¬
among gas systems. The company
13,300 miles of pipe line

controls

Basin

the

from

extending

Juan

San
and

Mexico

New

west

Texas, and serving all three West
Coast States.
Other
interests include
oil

production, refining and market¬
ing, exploration and development,
of petrochemicals,

manufacture
and

stake

uranium.

System

extends
from
western
Canada to the Gulf of Mexico and
acreage

owned

include

Minority, holdings
23% interest in Western

Natural

approximate

reserves

gas

cf.

trillion

8.7

25%

Gas,

Transmission stock

Pa¬

In addition to its funded debt,
within

(day, half of which
js already contracted for, and ulti¬
mately 800 million cf.
i El Paso will obtain 150 million
cf gas per day from the Savannah
Creek Field in southern Alberta

Transmission

Westcoast

which will require building a new

rapid¬

ly growing and expansion-mincled
gas
system in the country. In
comparison with revenues of less
than $10 million in 1946, last years
gross exceeded $221 million, and
with
the
acquisition of Pacific
Northwest Pipeline sales this year
should show another substantial
gain. The Pacific Coast States are
gas-hungry, especially since Cali¬
fornia production has proved in¬
adequate
in recent years. The
Chase Manhattan Bank has esti¬
mated that by

which

1966 the Coast will

trillion btu annually—of

need 6.5

would be sup¬

trillion

3.9

distances

short

'-V/'

El Paso has been the most

this

transport

;:•'■' , ? ' - - •'
■ ■■;'>}■
Natural gas sales
contributed

gas.

gas

last year's

84%

and

revenues

liquids 7%, while oil and re¬
products accounted for only

reserves

handle area, in Oklahoma

Pacific

while

its

creased

Northwest

own

reserves

in¬
the

has
in

In 1956,
supplied
total requirements
reserves, with an¬

Rocky Mountain region.
the

however,

only

11%

from

its

other

own

11%

plants.
El Paso

company

from

its

year

ought

better.

their

the

bonds

The

those

are

changed

There is
who

strangulation
talist

was

the

tax

cuts

redeemable

lion

any

build

also

Paso

transport

pipeline to El
oil products.

Production

Northwest

plans

Pending

and

bedding

than Jan.

such
a

un¬

for

must
man

are

furnishes

electric

in¬

cludes the Puget Sound region of

expand its refining and marketing

western

Kittitas

into

the

Salt

Lake

where

area

15%

over

that

65 years

Box 899,

Dept.

ings

Salt lake

City 10,
Utah

1958

substantial
now

for

will

show

and part of
County in the central
portion of the state. The territory

Washington

includes 267 communities and ad¬

jacent

over

Unless

improvement

and

are

estimated

roughly by Paul
vKayser at $2.50 on all 17 million
shares.
after

This is

probably calculated

substantial

tax

credits

Kahl Opens

re¬

Office

Apartments to engage in

securities business.

sulting from the loss carry-forward
of Pacific Northwest.
El

Paso, like other large natural
gas systems, has to do a great deal
of financing to take care of ex¬
pansion neeus. Eariy tms year tue
jompany sold
150,000 $5.68 pre¬
ferred shares and 300,000 $5 con¬

end

dollar that

Somehow

letter sent by Wal¬

in which we encourage

maximum voluntary economic de¬

cisions, with

minimum of gov¬
directives.

economic

ernmental

The

degree of government inter¬
ference into our economic life will
be determined in

large

measure

by the degree of social and moral
responsibility and concern for the

general welfare that free economic

in
making
economic deci¬

demonstrate

groups

their

voluntary

sions.

When free economic groups

65 years of age.

letter.

labor

E. E. Roth Opens

"The degree
terference

statesmanship

re¬

its present

significant

that

ppvson

will

our

economic life

cern

for the

general welfare that
demonstrate
their voluntary eco¬

free economic groups
in

making

nomic decisions."
Mr.
Reuther
by
to

seems

and moral

for

cern

think

his

that

the

actions,
"social

responsibility and con¬
the
general
welfare"

applies to every segment of our
society except labor unions, I in¬
sist, on the other hand, that labor
unions have a decided moral and

responsibility for the gen¬
of our economy and

social

eral welfare

society

and

that

with

very

few

exceptions, present labor leader¬
ship is not supplying it. The moral
and

responsibility of labor
welfare of
economy may in the end be
determining
factor
of
our
social

unions
our

the

the general

whole way

the

economic

of life because of the

persuasion

day is how to control and direct worst

SANTA BARBARA, Calif.—Ed¬

of government in¬

into

determined

great strength of labor unions
of
both in numbers and accumulated
writer John Dos Passos says that
wealth. I suggest also that political
the best way to put a man in the
parties may give in to the de¬
frame of mind to learn is to give
mands of labor unions to win sup¬
him a "good scare."
His "scare"
port of their members although
follows: "One of our problems to¬ such "friends" may prove labor's

SAVANNAH, Ga.—Raymond W,
Kahl, Jr. has opened offices at 15A
Lamara

find

in a large
type of leader
measure
by the degree of social
ship, which still behaves as if we
and moral responsibility and con¬
were
living in the depressed 30's
verses

very

vic¬

get across to the working
in this country that the ideas

economy

Calls for Labor Statesmanship

Earn¬

the
the

know-how,

support

AREA RESOURCES BOOK

COPY

and

its

importance.

become

dictators,

paid with

contained in

rural areas with an esti¬
instead
of the prosperous 50's,
mated 1956 population of 700,000.
daily capacity by 150 million erable holdings.
the present trend of giving less
cf, and has applied to the FPC
El Paso's consolidated earnings
and less Work for more and more
for another 185 million cf expan¬
Hayden Stone Partners
for 1957 (including Pacific North¬
sion. In a later program the com¬
money will so reduce our produc¬
west) are estimated at $1.30 per
Hayden, Stone & Co., 25 Broad tive
power that ice may achieve
pany plans to obtain 300 million
share on nearly 17 million shares Street, New York City, members
Cf from Canada and 235 million
fidl employment in a decaying
of common and Class B common, of the New York Stock Exchange,
economy.
If the average worker
from the Rocky Mountain area
or $2.60 a share if applied only to
on July
1st will admit to limited knew where this
process will lead
and elsewhere.
The four items
the dividend paying stock.
(Both partnership, Thomas H. Jones, H. him and our
country, I am certain
add up to 870 million cf per day,
classes
will share
in
dividends Harrison Smith, Galen L. Stone,
that
he
would
stop,
look and
beginning next year.) The decline and William D. Weeks.
listen, for the inevitable results
from last year's $2.11 is due main¬
On the same date Herbert G. of
continuing these policies will
ly to the lag in developing the Bell and Earle Gatchell, general
be the complete elimination of the
Pacific
Northwest
gas
markets partners, will also become limited
explains why the
profit incentive resulting in so¬
area we serve
formerly served only by manufac¬ partners.
cialism and slave labor. Russia is
tured gas.
The main competitor
offers so much
a good example of a country with
of gas in the Pacific Northwest is
Jerome Eisen Opens
opportunity
full
employment, bureaucratic
fuel oil, the price of which has
to industry.
BROOKLYN, N. Y. — Jerome mismanagement (as evidenced by
recently been increased to $3.10recent
Eisen is engaging in a securities
proposals for reorganiza¬
$3.20 per barrel.
Water power,
business from offices at 2316 East tion), captive unions, and a very,
Write for
while important locally, is over¬
64th Street.
very low standard of living.
FREE
all of limited
Northwest Production has consid¬

labor

the labor nomic sphere and the area of
population,of voluntary economic decisions will
220 million will be inadequate I be¬
be narrowed in like proportion."
cause of the higher proportion of
I would like to go back and
those under 21 years of age and
quote again one sentence from this
to

those

service

This infla¬ fail to
carry out their basic social
tionary squeeze will make it ex¬ and moral responsibilities to the
ceedingly difficult for this group community as a whole, the vacuum
to exist except at the lowest living created
by such failure will in-1
standard. Further, in 1975, despite
evitably be filled by greater gov¬
increased automation and greater ernment intervention into the eco¬
force

Puget Sound Power & Light Co.
3,200 square mile area which

practices

members

themselves

with fixed incomes stead¬

productive

banks

31, 1959.

hours,

restrictive and feather-

the dollar is redheed.

permitting the
borrowing of $25,000,000 not later
number

shorter

and

union

ily purchasing less as the value of

permanent financing, the company
has obtained commitments from

that

and

of age,

permanent financing, the
nature of which has not

determined.

good will it do labor to
higher
and
higher
wages,

population will be

required for expansion through
The company anticipates

been

ments of our economy. Mr. Reuther
restrictive stated:
practices by labor unions sap the
"Ours is the challenge of achiev¬
great productive power of our ing the delicate economic balance
country and will continue to do within the framework of our free

1960.

exact

the

capi¬

wealth,
expect chaos."

What

get

shorter

elimi¬

in
a

produce

rather than the disease itself.

further

The company

under construction.
may

Without

Suggests No Exceptions

and

cuts

industry

nation

civilization may

indication that

promise

Featherbedding

will

by confiscatory income taxes and
British manner?

than
wishful ter P. Reuther to President Eisen¬
thinking. As a nation we seem to hower on Nov. 28, 1956 apply to
prefer
dealing
with
symptoms labor as they do to the other seg¬
doing

regular

operation, and later El Paso's new
extraction
oil product line might be extended

is currently expanding

rise

nated.

101.559%.

bid of

of
25

tax

un¬

United States is at last sociallized

is almost worthless?

under¬
competitive sale on a

June
at

men

workable, what happens when the

Federal, state and local level
less
the
underlying reasons

Puget Sound Power &
Light
Company first
mortgage
bonds,—6 *4% series due July 1,
1987 at 103.459% and accrued in¬
Award

talk

Thurs¬

scheme

ability, is financially

proven

tims

000,000

despite

Howard

they will continue to go up at the

yesterday (June 26) offered $20,-

terest.

says:

of mediocrities rather than

firms and

Halsey, Stuart & Co., Inc. and
Brothers and associates

writers

"If socialism,

the individual will continue to go

Lehman

won

know

by H.

ton),

Confisca¬

tory taxes of business

Pugel Sound Pow. & LI,
61/4% Bonds Offered

panies in Venezuela. It owns about program will require expendi¬
69% of Northwest Production but tures of approximately $24,800,000
does
not intend
to acquire the and an additional $25,000,000 will

chased. and another is being con¬

gas

plus notes payable
totalling about $70 mil¬

If this amount were funded

lion.

Prologue

translated

in the Pan¬
structed along with alkalation and
and in
styrene plants—the latter, linking
the Permian and San Juan Basins,
up
with a butadiene plant now

bought

The

redemption
prices
7%, but El Paso, like other utility ranging from 110.50% to par, and
at
special redemption prices so unless this trend is reversed.
companies, is expanding its nonRestrictive practices are reducing
regulated
activities. President ranging from 103.50% to par, plus
accrued interest in each case
employee productivity and poten¬
Kayser is optimistic regarding the
tial productivity, soaking up the
Net proceeds from the sale of
company's growing operations in
benefits
that should be derived
the Tidelands, mainly in partner¬ the bonds will be used by the
from automation and better tools
ship with Gulf Oil and other oil company for construction pur¬
and machines.
companies. The company controls poses and repayment of short
It is predicted that by 1975 we
about 1 million acres in Canada, term loans.
will have a population of 220 mil¬
and has interests with other com¬
The company's 1957 expansion

fined

by oil and 2.3 trillion by
remainder.
gas. El Paso is gearing its' expan¬
Refining and marketing opera¬
sion plans to supply about 70% of
tions are however being limited
the area's gas requirements by
pretty much to the company's es¬
1960.
tablished
service
area.
Several
To take care of this big expan¬
refineries
were
recently
pur¬
sion the company has recently

plied

tinuing increase in labor costs.
higher the labor costs, the

due

debt

million cf per

Northwest

more.

long-term

has

to banks

Pipe Line), and. pipe line. Additional amounts of
28% in Rare Metals Corp. which gas will be brought down from the
has total reserves of uranium ox¬ Peace River area and Westcoast
ide approximating 568,006 tons or: Transmission will be looped for
cific

Paso

higher the prices, the more in¬
flation; the more inflation, the
higher the labor costs and prices
the equity ratio would be reduced until the bubble bursts, as it must!
gram would involve construction to about slightly less than 25 %.
Budgets, Federal, state
and
of a new pipe line branching off
El Paso Natural Gas has been local, have been rising and will
the line of Pacific Northwest in
continue
to
rise
despite
pious
selling recently on the Stock Ex¬
Idaho
and
extending
south to
change around 40 to yield 3.3% speeches made about cutting gov¬
Nevada, and from there connect¬
based on the $1.30 dividend rate. ernment expenses. Consumer
ing with the subsidiaries of Pacific Based on the March
earnings of prices, which have doubled since
Lighting to move this gas to the
$2.02 it is selling at about 20 times 1939, will continue to go up as
Los Angeles area. The line would
earnings.
v/v-'- they have in recent years despite
have an initial capacity of 400
promises
made
by
those
who

Westcoast through

(held

100%

$728

page

Why should we expect this trend acterizing the present trend of
to stop?
We are now caught in a our economy.
Here is another "scare" which I
vicious circle; the more the gov¬
ernment spends, the more infla¬ hope will
arouse
the American
tion;
the
more
inflation,
the people out of their lethargy be¬
fore it is too late. Dr. Karl Fuerhigher the government expenses.
Another vicious circle is the con¬ bringer
(Viennese
economist,

Percent

$435

Long-term debt

El Paso Natural Gas Company

from first

What Is Past Is

March 31, 1957 capitalization was
approximately as follows:

By OWEN ELY

Continued

5,141,000

our

own

American type of

social¬

enemy.

have

heard

great

deal

productivity but the
fact is that labor's productivity is
securities business from offices at
run mad
as it has
in Russia and
the result of better tools, better
424 Pimiento Lane Montecito. He
China.", Dos Passos is calling a machines and innovations in pro¬
was formerly with First California
spade a spade and correctly char¬ duction know-how. We must not
Company.
ward

Roth

engaging

ism.

don't,

socialism

will

about labor's

Volume

185

Number

5650

forget also that in past
has been

th.e

shift

farm

The Commercial and Financial Chronicle

there

years

of workers from

t©

industry-* from low
productivity on the farm to very
high output in industry, thus ac¬
counting for part of the increase
in labor productivity.
How long
these factors will be able to

sidy has become
for himself"

of ethics and the well

society.

The

barons

of
at

featherbedding
and
artificially
forcing a low output per manhour is a crucial question.

robbery

The

practices

Job

for

Congress

past

the

our

of. invisible

slowly

big companies
hands

unfolding

serious because

are

the

significant
state

and

reduction
local

taxes

Federal,

longer

but

owners

serious?

people must not be misled by
false promises and prophecies. As
matter

talk

about

Our

fact, the people who
reduction

Congress

expenditures must know, for
example, that at least 30% of the

The Treasury, in order to meet a shortage of cash at the start
of the new fiscal period, offered,$3 billion of

in defense procurement
expenditures in the last ten years
is due to the fact that

risen.

Inflation

least 20%

264-day tax anticipa¬

tion bills for new money.

These bills will be dated July 3, 1997
and will mature March 24, 1957 and will be acceptable at face
value in the payment of income and profit taxes due March 15,
1958. Payment for the new money tax anticipation bills may he

prices have

accounts

for

of all increased govern¬

made

agers.

bedding

into

the

feather-

restrictive practices
which will ultimately strangle our
and

unchecked.

economy

protect labor against itself

must

it is

believe it is not unfair to say that
is easier and safer for profes¬

sional

British

management to give in to
union demands, no matter how
unreasonable, and then pass the

protecting labor's rights and increased costs oh to the

now

consumer.

pension and welfarp funds which

apparently the labor unions

that is exactly what has been

unable

themselves.

for

to do

were

pening.

investigation into the build¬
industry, for example, will

ing

show

that

riddled

humble

with

Once

opinion,
that

think

hap¬

pattern

has

eroding?
Economist,"
the- noted ;
weekly, in a recent issue

"The

presented

output does
portion.

completely helpless and must
accept higher costs whether he

The

the

small

Law"

not increase

This

should

ring for

nomic

have

Bureau

"The

Not Anti-Union

building industry has done
If

nothing to end labor practices that
demand

neer'

press

day's

for

pay

'engi¬

button starting a

cement mixer at

the beginning of

what

prompts
I

have

ployee

said

thus

far

to suggest

someone

that

anti-union, I must state very
emphatically that I believe in la¬
am

work-day, press the button bor unions. I believe they could
be and have been in many ways
once again at the day's end."
This is not an isolated example. an asset to our economy. I believe
I
remember
having
to discard in the rights of labor to bargain
the

about

Now

Tight Money Policy to Continue
The money market, based on

Eco¬

cut of the

the

one

ion that the best way

the

future,

tiveness of higher interest rates as a

vehicle of control as far as
inflationary forces are concerned, particularly in view of the
exceptionally high income tax rates. There might be a reduction
in income taxes at some future date, but the time when this will
the

considerable conjecture, because as long
are strong and continue to mount
lowering of income taxes, nor will there be any
let-up \n the money tightening operations of the powers that be.

take place is a matter of

the year 2069 we will all be work¬

the installation and each

to make

threatened

did the
all

strike

job.

other unions

the

and there

are

other

the

union struck,

one

the job—

building

many on a

project—would walk off too.
I

remember

the

roof

one

contribution

Corporate Market Sets the Pace

I started with the statement that

unless

the

trend

the

last

The

under

total

our

is first

man

ber

I believe the working

and

labor

leaders

citizen of the United

only secondly

must

mem¬

and

union

not

labor

allowed

the

brink

of,

if not into,

cialism.

The

and

incentive to expand

mistic

cerpt from "House and Garden":

American public does not under¬

about

America's

because

ability

felt

that

to
the

stand the danger of inflation and
that
inflation is destroying our

could just get FHA to cover
in
its
appraisal^/. . We society.

you

them

learned

hide

increased

under easier terms.

did

ence

went up

make

costs

What differ¬
your

price

from $10,000 to $12,000 if

This is

men

of stature who would "rather

right than President"

turn

this tide.
I

very

serious indictment

leadership of both

litical

parties because they know

that to prevent inflation

our

po¬

must

sincerely

believe

that

the

people, understand the real
of
recent trends
and
where they are leading us, they
up

to the

situation.

will not be necessary to feed them

the mortgage from 15
unpleasant and uncom¬
political tranquilizers in order to
to ,20
measures. /.They
years made
the monthly fortable
know keep them ignorantly happy.
that those measures, for a time,
payment lower
on
the ' higher
I have great faith in the com¬
price. The truth is that it made may be even more unpleasant than
mon sense of the American people
virtually no difference at all to those which were taken to combat
and therefore I cannot help but
the builder so long as the easy depressions.
But they have beerbelieve
that
the
right kind of
mortgage money lasted, and so reluctant to educate the public to
leaders will emerge from labor,
long, of course, as climbing costs the fact that it is not a depression
from government, and from in¬
had not too drastically narrowed that threatens our economy but
that the imminent danger is infla¬ dustry, in time to save us from
his market."
losing the social and economic
and
the destruction of the
Mr. Peter Drucker in his recent tion
system which has proved to be the
middle class.
Historically, infla¬
book, "The Next Twenty Years,"
bulwark
against communism,
has
usually, destroyed the
has this to say: "Housing will be tion
extending

major political issue—nationally

well

ent

locally.

building in the
some

areas

of the worst slums this

country has ever seen.
new

slums

are

These

expensive but the

and

fascism

and

the

only strong social system left that
the rest of the world

Civic Interest

industrial

new

nazism,

middle class.

at pres¬

are

The recent political campaign is
clear example
of the lack of

public inteiest in
vitally affect the

issues

that

can

count

keep it free.

that

tar

paper

shack costs

$14,000 does not make it

Those

cheap

who

keep

government

agitating
as

for

them

the

building more and more
houses, and of course at higher
and higher prices, are following
the
dangerous
pattern
of
the
answer

times.

Getting

a government

sub¬

our

future

our

very

serious threat

the

face

what

glibly

nificant
state

and

talk

about

can

any

been

those

sig¬

("Special to The Financial Chhontcle)

MARYSVILLE,
Lucas and

Calif.—Fred G.

Emmett W. Scott have

in
Federal, become affiliated with Jensen &
expenditures 'or Stromer, 426 East Fifth Street.

reduction
local

has

Spread in Favor of Corporate Expected

Under

present, at least, the thinking is that this spread be'tween Government and corporate bond yields will widen because
of the large amount of corporate bonds that are coming and will
continue to come into the market. To be sure, if there should be
For the

•

let-up in the offerings of corporate bonds, there should be a
decrease in the yields of these bonds, which should tend to lessen

;

corporate bonds and the most distant Govern-

mcnt bonds.

■

...

Selling of Treasury Bonds Continues,
"

Despite the declining market in long-term Treasury bonds, it :
is reported that selling is still going on in these issues because the '
money realized from these sales is being reinvested in higher ;
yielding corporate and tax-exempt bonds. Also, there is substantial
evidence that the money which is being obtained from the cashing
in of Government savings bonds is being reinvested in tax-exempte,
corporates and to a minor

extent in common stocks.

According to reports, there is a somewhat enlarged interest in ,
long-term. Government bonds on the part of public pension funds, i
It is indicated that these buyers of long Treasury issues have been .

market goes down, even though these
and they have been wider spaced ;

making commitments as the

purchases have net been too large
than was true in the past.

Short-Term Basis
., •
*
a money market factor, even <
though there is very little in the way of mystery as to what it will
be; There is no doubt but what it has to be short-term in order to
meet the needs of those that will be interested in taking on these
August Refunding on

The

August refunding is still

that the attrition will be kept

within limits. 1 ~:

E. M. Joyce

Form Walker-Stevens
LONG BEACH, N.

Stevens,

Inc.

has

Y.—Walker-

been

formed

with offices at 470 East Park
io engage

Two With Jensen Stromer

country.

happening in the past,
who

between long-term

securities,

any

money

types of securities which are as large as

years*

Dunbar Director

John
B.
Dunbar,
partner
in
&
Co., has
less country but were not debated. The Shearson, Hammill
been elected to the Board of Di¬
public's lethargy to the basic eco¬
of a shack."
nomic problem and the failure of rectors of Budget Finance Plan,
Robber Barons and Cheap Money courageous
leadership
to
wake Los Angeles.
fact

it has been in many
This brings up the question as to whether this yield spread
Government bonds and corporate bonds, that is '
the highest rated ones, is likely to widen or will there be less of a
spread with the passing of time?
i
two

people, all the Ameri¬

meaning

face

in the yields of new corporate bond offer- '
marked effect on the yields of long-term Govern¬
ment bonds and this has resulted in yield spreads between these *

ings is having

the spread between

American

will

This upward trend

can

of the

resort

...

many courageous

dustry today. In this connection,
"Fortune" quotes a pertinent ex¬

survive

these

Treasury—Corporate Bond Yield Spread

making commitments in

are

interest rates.

earnings
into
better and more productive ma¬
chinery has been lost in these

construction, day "after day, doing
though a worker is first countries, knowing as they do, that
absolutely nothing, but he had to a member of a union and only increased productiveness of ma¬
be there to represent his union secondly a citizen of the United chines will be soaked
up by labor
'
'
because of some restrictive and States.
'//
' V '
and any better profit will be con¬
These are the reasons why 1 sumed by. taxes..
featherbedding interpretation
,.,/
union leaders made for the par¬ chose the title, "What Is Past Is
If the trend here is not changed
ticular job.
Prologue" and these are the issues or
stopped, it must inevitably
The high cost of building which we are facing today. The prologue
bring us also to the brink, if not
practically makes it impossible to must be judged by what has been
directly into,
socialism and an
produce housing at prices the gen¬ done in recent years and on that economic
system abhorrent to
eral public can afford to pay, will basis we should not be surprised
freedom-loving
Americans.
The
continue so long
as
we
permit that the great economist, Joseph real
danger is that we are rapidly
restrictive
featherbedding
prac¬ Schumpeter, just before his death
approaching the hour of decision
tices to exist in the building in¬ in 1949, stated that he was pessi¬
and it will take

buyers

fact, quite a number of these new issues have broken well below
the original offering price. On the other hand, premium flotations
have also gone below the original issue price because of the rising'

so¬

re-invest

institutional

securities, since they can very readily obtain all the securities they,
want at yields which are to their liking. This does not mean that
all of the new bonds have "gone out the window." As a matter of

stroyed the economy and put them

ductivity.

behave

"Costs hardly seem to matter if

because

labor, restrictive practices and
confiscatory taxes have almost de¬

higher
when tied to increased pro¬

new

tinues to set the pace as far as

wages

issue

market, especially for corporate bonds, conthe whole bond market is concerned.
This is the sector of the bond market which has a large interest

social structure. I believe in

States

•

sitting

man

the^ building

moral

pressures

ing for the government."

worth

inflationary

there will be

metal collectively but I also believe that years is reversed we will end up
shelving and substitute wooden labor must voluntarily give of it¬ in the same plight as Great Britain
shelving because two labor unions self freely to raise production to and France or perhaps even worse.
insisted that each had the right even a higher level and make its
There, featherbedding on the part
$25,000

the

projected in¬
finds that in

one

to fight the inflation and the inflation psy¬

means of a tight money market and rising interest
There is considerable question, to be sure, as to the effec¬

chology is by
rates.

this

are

the statements which are coming
being held in Washington, will prob¬

are

on the tight side for an extended period of time. It is
evident that the monetary authorities are pretty much of the opin¬

em¬

hearings that

ably remain

connection the First National City
Bank of New York concludes
that,
"if these trends

///.'.\'/.

sooner) being guessed as the likely time.

fa¬

eight.

every

evident that additional new money financing
future, with October (if not

very

will have to be done in the not distant

pro¬

Research found that in

government.

borrowing will only cover thee Treasury's *
new fiscal year which begins July 1. *

money

Therefore, it is

featherbedding and restrictive can afford them or not. As a mat¬ United States between 1900 and
practices. In the April issue of ter of fact, in many cases, such as 1950 that labor rose about 125%,
"Fortune"
magazine, there is a the building industry, for exam¬ while the number of government
statement which I know to be true ple, the contractor works under employees increased almost 500%.
from
my
own
experience as a the authority of the labor unions In 1900 one employee in 25 worked
for
the
builder
of branch
stores
for
a
rather than vice versa.
Federal, state or local
large department store.

new

too!

National

This

cash needs for the start of the

ment employees multiply by about
5% a year even though their total

miliar

set,

"Parkinson

which states that British Govern¬

businessman

been

the

of the dollar is

by crediting the Treasury tax and loan accounts of the comBy making the new money offering in the form
bills, the Treasury will let the market set the rate. Also, t>y '
having them payable through the tax and loan account, these bills
will bring a more attractive rate than would be the case if they
were offered in the regular way.
*
/
^
V.
/
:
mercial banks.

States should

investigation

Governments

By JOHN T. CHIPPENDALE, JK.

ment

in the hands of

United

the

Reporter

govern¬

professional man¬ ment spending inthe last ten
Inevitably there must be a years. How can anyone promise
at the earliest pos¬ difference, and there
is, between significant cuts when month after
sible opportunity make a thorough an owner and a paid
manager.
I month prices go up and the value
The

Our

increase

tolerate today.

is the

the

robber

would

kind

tragedy

the

'•

so-called

the

shocked

restrictive

matter

being of

total society.
Something is hap¬
pening to the moral fibre of our

coun¬

ter-balance

matter of "each

rather than

(3001)

Ave.

BOSTON,
Joyce

securities business.
Presi¬

and

Treasurer,

Vice-President,

and

Irma

Koff,

Hyman

Ko-

bert, Secretary. Mr. Koff <was pre¬
viously with J*

H. Lederer &

Co.

opened

Street

Tremont

securities

Opens
Edward M.
offices at 10

—

engage

business.

Form Edwards & Co.
Ala.—Edward

Officers are Irving W. Koff,
dent

has

Mass.

MONTGOMERY,
H.

Edwards is

curities
the Bell

engaging in a se¬

business from offices in
Building, under the navna

The Commercial and Financial Chronicle

(3002)

Continued

handle the debt in

from first page

and

market

work.

Federal Debt and Budget in
Past Four and a Half Years

tions.

We have problems, but

agement.
crisis.

1 propose

to cite the recommen¬
dations of our Committee in 1948

briefly what we
accomplished in fulfilling

have

them.
;

Committee

described,

un¬

headings, the dangers to
the American people arising from
der four

huge debt.
One of the, dangers is dilution
of the dollar: Inflation,
our
,

This

prosperity,

national

high

Another is the risk of boom and

bust: after you inflate, you almost

always deflate.

with

when,

debt-~and

are.

the

natural
effective

most

are

work

you

credit and allow the in¬

terest rates to go up as
for

sure

the pres¬
increases, these

funds

forces will act

time

the

should be reducing the

Our

in 1958.

one

summarize

and

useless

allow the natural
of supply and demand to

forces

the

controlling economic fluctua¬

for

had a sur¬
plus in 1956; we will have one in
1957; and we are budgeting for

that

way

policies to
interest rates,

peg

which

forces

brake

011

now

correction of

excesses

our

economy.

with

Interference

market

free

forces may be necessary

emer¬

gencies, but long-continued inter¬
ference leads to disruptions that

inevitably cause more harm than
good. That was precisely what oc¬

is smothering of en¬

limit will return to its permanent

curred

With the huge debt, the
amount of taxes is large. The debt

level of $275 billion on June 30,
1957. To keep under this limit will
call for restraint in spending and

couraged the Federal Reserve to
make money cheap , and overjy

third

The

terprise.

with

interferes

kets

the

tends

and

capital

mar¬

back

hold

Fourth

freedoms:

budgets,
financing

loss

the

human

big government, big
big taxes, and huge
operations

the

cramp

freedom of the individual citizen.

„

The Recommendations—and

Control the Budget

and

successes

our

We have had

done that?

short¬

our

The

"You

hear

have

critics

say,

the
biggest
had." That isn't
so.
In
1953, we inherited from
President
Truman
a
budget of
budget

today

ever

you

$74.3 billion and

deficit of $9.4

billion. We face for the next fiscal

$71.8 billion budget with
surplus. Mr. Truman's budget

year
a

for

1954,

lion.
We cut the spending by $10 bil¬
lion, from $74% billion down to
$64V2 billion in 1955. We cut taxes
at the same time by $71/2 billion.
From this low point, the budget
has risen, partly due to the high
cost of new military equipment,
partly due to adjustments of Fed¬
eral salaries, partly due to pro¬
grams
voted
by
the Congress,
,

the Administration. Of course,

problem

butter"

it until

escape
arms

economy

"guns

and cannot

towards

some move

reduction

national

the

military

the

.^budget. We are operating
and

becomes possible.

security

cannot

take any chances.

While
we

far from

are

satisfied,

have made great steps in get¬

progress

held

debt

commercial

the

increased
the
amount
individuals in
these four years by about $l'/a
billion. The $6 billion increase in
holdings of E
and H
Savings
We

have
held
by

bonus

has

the past four years

uunng

offset

than

bonds.

long-term bonds, which had been

practically

closed

from

1946

1952.

(d) We have cut back what may
be called the "floating debt"; that
that is, the debt

maturing in one
redeemable on demand in
the hands of larger holders. I in¬
clude in the floating debt the F
and G and the J and K Savings
Bonds, which have proved their
volatility by coming in for re¬
demption at inconvenient times.
year, or

have

these bonds for that
Another

debt

so-called

tax

floating

terminated

have

is'

savings

notes,
time, so they
were demand obligations like the
F and G bonds. If you add up
these types of short-term or de¬
mand debt, you will find that we
have cut this "floating debt" by
$25 billion from 1953 to the end

redeemable

all

these

the

have re¬
potential

ways,

inflationary

by the President but is
given him by the Congress. Pro¬

cessful

gram after program

lion of the debt

reflects Con¬

gressional action at greater

less

suggestions of

the Administration.

Success

what

getting

control

will

the

budget

depend

the

people tell their repre¬
in Congress to do, or
the
representatives
think

of the debt.
This

into

the

what

was

suc¬

stretched out

maturities'

—

either

notes.

Treasury, at the moment, has
its
financing largely at

have

portunities

when they

second

recommendation

debt.

have

though it has
years

was

begun

taken

about

before

herited

deficit

1953.

than

half

cut

that

$91/2

so,

three
com¬

could

reducing the debt. We had

start

other

times,

this amount in

Meantime, we
inflationary

bank-held

time,

These

statements

perverted

and

the

in the future which leads
sumers and

years, we have had,
are having, a great and grow¬
ing prosperity.
We made a vigorous cut of $10
billion
in
government spending
and a cut of $7!^ billion in taxes.

have

price* alid

been

similar

any

rent

controls.

Our

less

exactly the

debt

1950

and

of the

Joint

Economic

the

from

seize the op¬

arise

and,
have patience to

are

still avoiding
in the

increase

and, at the

same

still

page

4"f'

If you

have

try with steady growth of the na¬
tional income and production, it
is easier to carry
est

the debt; inter¬

the debt becomes

smaller

oportion
of
national
income.
happened. The reduction
of taxes in 1954 was good. The re¬
That has

moval of

fidence

business

con¬

encouraged

has

the

live

with

debt

the

easily and enjoy more of
good things of life. Actually,

the

debt

the

national

national income,

with

136%

That

means

smaller

recently

79%

compared

proportion

than it

the

used

na¬

be.

all these

the past 4V2 years, we have made
real

in this

progress

problem

handling the debt.
This
with

campaign
Some of the

great

but the campaign

lose;

you

Flexible

Interest

Rates

goes

clear; fhey

and the

Treasury, as never before.
principles are right; there
be temporary setbacks, but

Our
may

continue

shall

make

of Unjustified

Wave

Pessimism
Before
to

closing, I want to refer
of wave of pessimism

kind

about the current financial

tion, which

seems

situa¬

unjust¬

ified.
In the
we

public

press

and speeches,

find such expressions as these:

"There

certain

amount

alarm in the country about a pos¬
sible depression

"With

all

enterprise,'

the

talk
are

'private

already

well

"There

will

continued

easy

phrase which

territory. What it

covers

means

the

The
from

will

decrease

the

year ago

statistical

that

be,

Congress and out of it, will back

118,538

car

completions

The

'4-:

agency,

:said

•

'•

•

the

•

industry is

auto

benefiting

^ Ward's"

price
48

by saying that the

explained .this

industry's low-

account for 30 (or 63%) of the United States total of
assembly plants, plus 14 or (61%) of the industry's 23

cars

car

Only four fewer auto1

second-shift basis.

plants are on a second turn now than at the outset of the model
year nine months ago.
Thus, the use of single-day or one-week
shutdowns instead of abolition, of second assembly shifts is also
stabilizing employment. 77":

7. .'

Steel Production Placed at 86.7% of Ingot Capacity
This Week
By the end of the first half, the nation's steel mills will have
produced 60,785,000 net tons of steel or at an annual rate, 121,500,000 tons, "Steel" magazine stated on Monday last.
of capacity, ,
:

Production

will have averaged about 91%

July and August, the
weekly metalworking publication said that if production averages
89% of capacity in the last half, the year's out-turn will be 120,000,000 tons.
The record is 117,036,085 tons in 1955.
It pointed out that some users will soon be restricting or
halting their intake of < steel because of vacation shutdowns.
Usually, arrangements are made to receive steel during such
closings.
This year, there are reports of plants preparing to close
up shop completely, ■ even to dispensing with maintenance.
The operating rate last week slipped a half point after three
consecutive weeks of gain.
Mills worked at 88% of capacity, a
rate equal to 2,252,351 netitons of steel-for ingots and castings.
Even though demand has slackened since fhe first <jf this year,
steel consumption remains high as consumers use up inventories.
The publication reported that steel likely will cost more in
another week than it does how. An automatic wage increase due
the steelworkers
under -the three-year labor contract' becomes
the

While

operating

effective July-1.
wage

rate

will dip

ton.

will

This

1.7

costs—resulting

rise will average S5 to $6
a probable wage boost

inadequate to cover

cents per man per

employment

A steel price increase is expected to accompany

boost.

The best bet is that the steel price

cents;
powers

are

cost of 17.1

Y.Y 77YY./ 777Y'Y

mid-year buying, .trend towards low-price cars, which are
running at 65% of industry production this month compared with
63.9% in May and 60% in April.
*7
7 7 :
'

in¬

budget."

output rise

Div., Dallas, Texas, unit.4

the

..."

come

with 125,373 in the week preceding.

been

have

said,

netted,. 105,148. ;
Explaining last week's fall-off were four-day operations at
De Soto, a Monday "heat" loss at Dodge and a strike at the Ford

forward. The objectives have been

"There

Restoring flexible interest rates
lot of

week

same

the June

plants currently on

battles.

many

";\wv,7-C 'Y-

plant.

the past week compared

gradually in

ways,

layoffs,' "Ward's"

June

Included

Dodge

1946.

the interest charge is

income

tional

now

..."

;

production

despite a 16%
passenger car output .over a year ago,, and exclude
low-price field cars plus Dodge, and Chrysler. "Ward's" attributed
the Dodge layoff to cut back of De Soto output handled at the

growth in the economy which en¬
ables

The

rise

price and wage controls
—

last

ments.

—the reassertion of

industry's

car

addition, it noted that Mercury's Wayne, Mieh., plant was
week, idling 3,500 and several Mercury plants may be
Monday July .8; De Soto is scheduling a two-week shut¬
down June 24-July 7 at Detroit, furloughing 2,800; Docge ».
*ving off 3,900 at Detroit Juiy b; Mxca wm nait its Flint, Mich.,
operations July 4-14, idling 11,000. General Motors Corp.'s seven
Buick-Oldsmobile-Pontiac branch assembly plants each will lose
from 3 to 6 production days during July diie to inventory adjust¬
idled

prosperous coun¬

auto

closed

Dynamic Economy

Industry

automotive industry

vehicle production, excepting some lowplants, .will be-closed,from July 4 until July 8 for
a
long Independence Day weekend affecting upwards of 200,000
employees.
' 7"\Y7 v'V-V.*7 .Y7>:Y,.S; ■

Com¬

Report

flation

Restore

the

■

Nourish

the

price field

chaired by Senator Paul Douglas,
(5)

our

the past week medium-price car
makers were scheduling a rash of temporary assembly line shut¬
downs and unemployment .furloughs during June and July. •
"Ward's Automotive Reports" stated on Friday last," that most

(4)

are

recom¬

made

Subcommittee
mittee

In doing this,

true.

was

along with state of capitalism."

1954

that

mendations

country,

free econ¬
omy
are
the admiration of the
world. They more than warrant,,
and
will continue to have, our
confidence!
77.7 =

general

buy,

goods.'

government,

been

there has

But

inflation

credit

produce

Pessimism?

many years. A recent

which

build,
This
very
confidence, and the record
rates of employment and business
activity which
reflect it, more
than demonstrate the
ability of
our society to absorb
declines in
government
spending
and
the
vitality
of
our
free
enterprise
economy to bring an ever higher
living standard to our people.
and

more^ stable
period * for
slight 'flareup partly reflects higher costs of
services and graduaF removal of
in

con¬

our

suppliers alike to seek

with

credit

were.

Prices

are

larger additional amounts of

ever

wage controls, so that the public
and the individual are freer than

than

problems of prosperity. They
arise from that great confidence

these

removed

interest..
problems. They

the

interpretation 4 of : the
4y2 years. *-: ;

have

given the Federal Re¬
freedom to act in

System

public

We do have

• " "v

seem

have

serve

and

the

increasing a little
the bonds held by individuals.

in¬

billion

deficit

of
the

to reduce

to meet the inherited

mitments

distributing the debt, you
have to be something of an oppor¬

wait. You can't force free markets.

(2) Reduce the Debt

Committee

This

progress.

tunist. You

by their inat¬
tention what they want and what
they are willing to pay for.

The

hour, of which 8.7 cents represents
from the hourly increase of 7.0

increments; 0.4 in holiday pay; 2.3

for Sunday pre¬

mium and 4.0 cents in cost of living.
A

rise

17.1

cents

.»■

and demand in the money market

events of the past

tion between the Federal Reserve

their

demand

particularly

was

short-term.

our

tion."

•

political

controls the great forces of supply

..."
"The Treasury is walking into
a
rough proposition and is going
to sponsor a good deal of infla¬

they

the Treas¬

We have released from

process

years,

off the debt.

pay

high level. It is a
'pump
priming'

followed—with complete coopera¬

people want. In the last
analysis, the people determine the
size of the budget. They decide by

their

and

market.

the

have followed

In
recent
months, with the
capital market heavily congested
with new issues, the redistribution
program has
slowed down; and

sentatives

pressures

continued

spending at

first time in nearly 20 years that

perfectly

longer

bonds

work

supply

of redistribution

program

in 1954 and
1955, when,
favoring conditions, $40 bil¬

with

battles ycu win, and some of them

made

under

of dynamic
evolved
degovernment

type
have

perpetual

414

has financed itself in nphinl'lationary ways and has begun to

re¬

any

1956.

duced

law

the

sale

reason.

the

part

that

the

terminated

of the debt

the

ma n

decline

and

in holdings of other savings

control depends on the
cooperation of all the people for
a large part of the
budget is not

from

has

For these

economy

commodity price rise.

Administration

This

by $4 billion from Decem¬
ber, 1952, to December, 1956.

better

budget

variance

rates

chasing power.

banks

ting the budget under control.
Further

1951. Although
were
kept
low,

prices skyrocketed, and our dol¬
lar lost almost half of its pur¬

most

(a) We have reduced the amount
of

often larger than recommended by

great

en¬

plentiful prior to
interest

dangerous
when increasing amounts are held leased these free market forces. •fContinued
We have stopped telling the Fed¬
by commercial banks, for, in that
eral Reserve what they must do.
form, it adds to the money supply
We have given them freedom to
and can be inflationary. In four
ways,
we
have succeeded in a carry out their policies, the cen-tral core of which is allowing the
better distribution of the debt.

which he gave out in
January, 1953, was $78 billion,
with a planned deficit of $10 bil¬

debt

(b)

comings.
Sometimes

larger surplus is in

(3) Distribute the Debt

The first recommendation of the

report was to control the budget.
Have

much

sight.

Treasury

present

Thursday, June 27. 1957

The State of Trade and

The Action

/
(1)

postponement of further tax cuts
until

private enterprise.

the

when

the

ury

economy

ex¬

panding credit. Slowly, but surely,
they will have their effect. Never
underestimate the power of these
great natural forces for the self-

operating under a
temporary debt ceiling of $278
billion. This is the third year in
which a temporary increase in the
debt limit has been necessary to
permit the Treasury to meet sea¬
sonal borrowing needs during the
year. Under the present law, the
are

from

away

drive."

monetary

you

make

you

and 1955, and then we

natural

the

allows

hour

mear^s

steel production costs

Volume

185

Number

5650

The Commercial and Financial Chronicle

would go up to $10.26 a ton, but
policy; makers are questioning
whether they can pass along the full costs.
Restraints on the price increase are-the July 1 wage boost
cost, which is a little less than last year's, demand loi ateei is

tion is to show the general trend of food prices at

to help restrain inflation.
'/,/
:
;
:
Expectations are for the price increase to be made on base
prices, rather than extras and for the increase to vary from prod¬
uct to product. A round of.increases on extras ended only a couple
pressure

f of months ago.
of $8.50

;

ton

The

It
on

was a sequel to
base prices.

American

Iron

Institute

that

announced

At 291.30

and steel

for

castings,

85.2% of capacity, and 2,181,000 tons (revised)
The

industry's ingot
annual

production

rate

For

For the nfee

capacity of 133,459,150 tons

1957

ween

month

ago

the rate

of Jan. 1, 1957.

88.0% and

was

pro-

eduction 2,252,600 tons. A year ago the actual weekly production
f was placed at 2,114,000 tons or 85.9%.
The

higher
.

operating
on

rate

capacity

than

based

are

comparable

not

1956.

annual

because

percentage

The

1956.

Of the Prior Period
industry for the

and power

;

distributed by the electric light

ended, Saturaav, June 22, 19o7,
was
estimated at 12,337,000,000 kwli., according to the Edison
Electric Institute. Output the past week reached its highest point,
since the week ended Jan. 26, last, when production stood at
12,410,000,000 kwh.
The all-time high record was reached on
Jan. 19 last, when production attained a level of 12,556,000,000
kwh.
•; .,/%/:'•,
•;•..//,
'
V"

wecK

The past week's output increased

379,000,000 kwh. above that
859,000,000 kwh. or 7.5% above the
comparable 1956 week and 2,111,000,000 kwh. over the week ended
June 25, 1955.
//:
•'
of the previous week;

Loadings Rose 1.7% Above Prior Week But Were
6.9% Under Like 1956 Period

Loadings of
increased

estimated

Loadings for the week ended June 15, 1957, totaled 746,125
a decrease of 55,303 ears, or 6.9% below the corresponding
1956 week and a decrease of 33,832 cars, or 4.3% lower than the
corresponding week in 1955.
■/-

slackened.

There

was

the

with 125,372 (revised) in the previous
loss

total of

units

5,803

states "Ward's."

week. The past week's

and trucks amounted

cars

below

that

pro-.

142,317 units, or a
preceding week's output,

of the

/';

V "'
•
Last week the agency reported there were 23,779 trucks made
in the United States. This compared with £2,748 in the previous
week and 21,688 a year ago.
\
V
Last week's output fell below that of the previous week by
6,834 cars, while truck output advanced by 1,031 vehicles during
the week.
In the corresponding week last year 105,148 cars and
21,688 trucks were assembled.
"Ward's" latest news release did not report on Canadian
car or truck output the past week.
■

Downward

Trend

The Past Week
Commercial
June

ended

toll

245

able

265

from

dipped below

year

failures

the

fell

241

preceding week,

the

week

Brad-

Dun

last

and

year

was

down

slightly

but continued well above the 205 in the

ago,

week

For the fourth time in the last six weeks,

^ street, Inc., reports.
the

industrial

and

Failures

1955.

were

22%

less

numerous

from

time

futures prices on the New York Cotton Exchange
again the past week as trading advanced somewhat.

crop

than

i»

1939 when 310 occurred.

decline among casualties

brought
1

above

their toll

the

197

down

201

with liabilities of $5,000 or more
from 220 although it remained

last

excess

$10(|,000 as compared with 34

a week ago.
Manufacturing failures continued upward to 52 from 43, but
all other industry and trade groups had lower tolls during the
week.
Retail casualties declined to 124 from 139, wholesalers to
.

•

from

concerns

failed

21, construction contractors to 30 from.43 and service
to 17 from 19.
While considerably more manufacturers

than

last

tolls fell short of the

year,

functions.

level

other

;

year ago

After

sising for

week to

stand

four

Week

successive

weeks,

the

wholesale

food

June 18, as against $6.22 a week
ago.
The latest figure compares with $6.09 on the corresponding
date a year ago, or a gain of 1.8%.
Higher in wholesale cost during this week were wheat, corn,
rye, oats, lard and eggs, while hams, coffee, cocoa, raisins, steers,
hogs and lambs registered lower prices.
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use audits chief func¬
at

$6.20

cotton

total

at the

of 6,900,000

end.

bales,

about 111,000 bales, as against 69,000
and 101,000 bales a week earlier. Total exports
through June 11 were estimated at 7,111,'J

Although
chases

from 1% Below

tend
this
year's
outing which
promises to be the best ever.
In scheduling the 11th Annual

Father's Day sales promotions helped boost pur¬
apparel over those of the prior week, volume
a year ago.
However, total retail trade showed a

Tournament, the Golf Committee
planned a challenging pro¬
For the first time "The

has

gram.

year-to-year gain, reflecting increased buying of women's apparel

Automobile dealers reported a rise in both
Father's Day gift shoppers were
primarily interested in men's furnishings and sportswear, while
the call for lightweight suits lagged.
Best-sellers in women's
merchandise
were
beach
accessories,
swimwear,
and
cotton
and household
new

goods.

sales and

car

inventories.

Extremely hot weather in many areas encouraged pur¬
chases of air conditioners. Volume increases in summer furniture,
dresses.

major appliances and garden implements were reported.

some

The
on

total

dollar volume

of retail trade in

the period ended

Wednesday of last week was from 1% below to 3% higher than

according to estimates by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the comparable 1956 levels by the
following percentages: New England and East North Central
—4 to 0; Middle Atlantic and Pacific Coast 0 to +4; West North
Central —5 to —1; South Atlantic +1 to +5; East South Central
year ago,

—2

—1

-f2; West South
+3%.

There

was

another

Central +2 to

+6 and Mountain States

week

last

wholesale

orders for

volume noticeably exceeded that of a
Best-sellers were lingerie, dresses and coats. Book¬
ings in women's summer sportswear continued at a high level.
Although textile wholesalers reported moderate declines in orders
for cotton gray goods and carpet wool, trading' in woolens equalled
that of the prior week.
While attendance at furniture shows in
Chicago and Grand Rapids was high, orders were below expecta¬
tions failing moderately below those taken at the similar events
women's Fall apparel and

last

the

June

15,

the

store

Federal

sales

Reserve

country-wide

Board's

index

for

basis

the

week

taken

nent

preceding
reported.
recorded.
of 2%

last week rose 5% to

9% above the similar period a year ago, according to trade ob¬
servers.
The heat wave the past week was more conducive to
the sale of seasonal goods than was the case in

*Low
*Net

Runner-Up

Low

Gross;

Net; *Runner-Up Low net;
(Twosome J—ex¬

Best-Ball

cluding

partner);

and

champion

Match

Against Par;
Betting on 5th Hole
against house odds; Nearest to Pin
on
6th
Hole; Longest Drive
on
10th Hole; Longest Drive on
14th Hole; High Gross; Most Lost
Balls; Kicker's Tournament (Se¬
Best

Play

Fewest Putts;

lected Holes).
No contestant can win more than

prize other than Kicker's En¬

try Fee $2 plus Greens Fee of $5

payable

at first tee.

*The Callaway Handicap System
will be used.

Ask for I ANY Spe¬

cial scorecard and Apawamis scorecard on 1st tee.
There

contest
trance

will
near

fee

also

for

chipping

House.

Club

En¬

shots.

1956.

below that of the like period of last year. In
the preceding week, June 8, 1957, a decrease of 2% was reported.
For the four weeks ending June 15, 1957, no change was regis¬
tered. For the period of Jan. 1, 1957 to June 15, 1957, the index
recorded a rise of 3% above that of the corresponding period
1957, declined 1%

by 1 o'clock.

way

Meflmbers of the Golf Committe
John

are:

Peterkin, Laurence

M. Marks & Co.,

Chairman; Robert

Seebeck, Hemphill, Noyes & Co.;
Charles E. McDonnell, McDonnell

& Co.; Walter Michael Giblin Jr.,
DeCoppet & Doremus, and Andrew
W. Eberstadt, F. Eberstadt & Co,

Now With Aim, Kane

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended June 15,

1956.

will be made for: Low

Awards

Gross;

ended

below the like period last year.
In
week, June 8, 1957, an increase of 1% (revised)
For the four weeks ended June 15, 1957, no change
For the period Jan. 1, 1957 to June 15, 1957, an in¬
was registered above that of 1956.

1957, declined 2%

was

New

Championship" perma*
trophy will be presented. -

expect to have this activity under

Department
from

York Golf

ago.

year.

Association

Investment
'

one

rise

It is anticipated that all of the
Association's membership will at¬

men's

less than

was

Beane.

ner

To 3% Above Like Period of 1956

Retail trade volume in New York City

pric^ index, compiled by Dun & Bradstreet, Inc., turned lower
last

of free

Trade Volume in Latest Period Ranged
>

crease

Latest

carryover

31 showed

bales, sharply above the 1,938,000 of a year ago.

000

Wholesale Food Price Index Turned Downward
In

July

Exports of cotton for the week ended on Tuesday of the pre¬
bales

was

1956

ceding week amounted to

year

year.
Small failures, those involving liabil¬
ities under $5,000 dipped to 40 from 45 in the previous week and
48 in the similar week of 1956.
Twenty businesses failed with

liabilities in

total

the

year

compared with 4,600,000 bales at the end of last season.

compar¬

prewar

C. Harris, Reynolds & Co,
Majors: Arthur C. Burns, Dominick &
Dominick; Douglas De*
lanoy, Jr., Aubrey G. Lanston &
Co.; Clinton Gilbert, Jr., Blyth.&
Co., Inc.; William H; Gregory, III,
Gregory & Sons; John C. Maxwell,
Jr., Tucker Anthony & R. L. Day;
Duer McLanahan, Jr., Glore, Forgan & Co.; Charles H. Mott, Baker
Weeks
&
Co.; Stuart 1. Repp,
Smith Bctrney & Co.; William H.
Steen, First Boston Corp. Robert
G. Strachan, Morgan Stanley,&
Co.; Frederick S* Wonham, G. H.
Walker & Co., and Dean S. Wood¬
man, Merrill Lynch, Pierce, Fen—

week.

Estimates

Co.

Mack

a year ago.
Trading was sluggish and prices
close to those of the prior week. Following the decline in

the

Association's

Investment

Syndicate Managers' are: Ralph
F.
Peters, Disaount Corp., and

Cotton

/Business Failures Continue

for the current season

hog market, lard futures prices fell moderately.

rose

John G. Pe-

Exchange" which opens for
trading once a year at the annual,
outing, is to be headed by Chair¬
man William N. Schill, Reynolds

decline in receipts, hogs prices declined last week
in six weeks.
Hog trading slackened at the
While cattle receipts expanded, they were

first

The

slipped

Despite
for

"Stock

moderate rise in the buying of coffee, but futures
slightly.
Anticipating a slight rise in price of
sugar futures, buyers increased their purchases at the beginning
of the week and prices expanded moderately at the end of the
period.

prices

// ./
/';V l/':
7'• "■
■ '
77
Last week's car output totaled 118,538 units and compared

;

1956 period.

stocks of cocoa in New York dipped to
against 260,306 bags a year ago. Arrivals for the
year so far were
1,888,635 bags, compared with 2,332,646 bags
in the similar 1956 period.

Automotive output for the latest, week ended June 21, 1957,
according to "Ward's Automotive Reports," eased,.further the past
week as^ a result of four-day operations at De Soto, a -Monday
"heat" loss at Dodge and a strike at the Ford Div., Dallas, Texas,

.1 duction

govern-

/ uniL;
y

recent

Warehouse

259,719 bags

Output Eased Further the Past Week
-

all

.','.77

sluggish, prices
held steady.
Flour receipts at New York railroad terminals on
Friday amounted to 73,101 sacks, including 25,716 for export and
47,385 for domestic use. Cocoa prices fell somewhat as trading

cars,

Operations

exceeding

committee,

chairmanship

terkin, Laurence M. Marks & Co.,
and his Committee are handling
the arrangements for the golfers
and Arthur B. Tremati, Jr., Dillon,
Read & Co. Inc., arid his commit¬
tee will line up the tennis competition.
John F. Bryan, Smith
Barney & Co., has some special
events planned to lighten the pro¬
ceedings and, it is understood that
Vincent
R.
Smith, Jr., G. "H.
Walker & Co., has arranged for a
sumptuous dinner, to top off the
day.

While the buying of most types of flour was

■i

508,000,000 bushels,
y/c'yy-y.y

the

will also be served;

slightly less than

freight for the week ended June 15, 1957,
or 1.7% above the preceding week the
of American Railroads reports.

Due to Curtailed

; v

entertainment

Hall, Jr., Shearson, Ham/
Co., has completed plans
for a day of golf, tennis and swim¬
ming, followed by the Bar Room
Stock Exchange and dinner. Lunch
mill

Although total grain trading on the Chicago Board of Trade
over that of a week earlier, it remained below the year
ago level.
Purchases of soybeans expanded slightly, but pried
declines occurred.
Average daily purchases of grain and soy¬
bean futures in Chicago were about 42,000,000 bushels. This com¬
pared with 36,000,000 bushels in the prior week and 60,000,000

cars

U. S. Automotive

"'■/./

climbed

were

revenue

by 12,648

Association

rose

"■■■ ■/,/.''/;

y.-y

merit predictions,

end

Car

•

■

and oats during the week and prices rose appre¬

corn

bushels in the comparable

Output the Past Week Extended Its Gains 7

The amount of electric energy

1956

for

of Jan. 1,

v':;:

Electric

5
-

capacity

figures

capacity of 128,363,090 tons

Parker

7\/>'v;

/-■■/

Rye, New York.
The

under

Both trading and prices in wheat were close to those of the
previous week. Exports of wheat and flour for the week amounted
to nearly 10,000 bushels with total exports for the season so far
;

is based

on Friday, June
28, at the Apawamis Country Club

trading in
ciably.

outing of the
Association of New

York will be held

Unfavorable weather conditions in growing areas stimulated

with

week ago.
the weeks in

11th annual

Investment

earlier.

the

compared

The

Slight price declines in livestock, coffee, cocoa and lead were
offset by substantial rises in
grains, steel scrap, rubber and sugar.
Lard, textiles, tin and flour prices were close to those of a week

^ of capacity for the week beginning. June 24, 1957, equivalent to
tons of ingot

11th Annual Outing

June

17, the Dun & Bradstreet daily wholesale
commodity price index moderately exceeded, the 289.10 of the
preceding weeK and was noticeably above the 286.65 of the cor¬
responding date a year ago.

operating rate of steel companies, having 96.1% of the steelmaking capacity for the entire industry will be an average of 86.7%
2,220,000

NY Investment Ass'n

Wholesale Commodity Price Index Rose in Latest Week

last summers average increase

Steel

and

the wholesale

level.

lighter; consumers, especially those in a profit squeeze, think
prices shouldn't rise much and the fact that first quarter steel
earnings are higher than in the same period, 1956. There also is

38 *

(3003)

(Special to The Financial Chronicle)

Robert W,
associated
Aim, Kane, Rogers & Co.;

CHICAGO,
Thomas
with

has

111.

—

become

39 South La Salle

Street.

formerly \yRh Barclay
Co.

He was

Investment

The Commercial and Financial Chronicle

(3004)

Thursday, June 27, 1957

★ INDICATES

Securities

Now

Academy Life Insurance Co.
April 18 filed 750,000 shares of common Stock (par 50
cents) to be offered for subscription by military, Na¬
tional Guard, active, retired or reserves, personnel and
ciot to the public at large. Price—$1 per share. Proceeds
—For operating capital.
Office — Colorado Springs,
Colo. Underwriter—None. Offering—Expected in about
three weeks.

All America Expansion Corp.* Pasadena, Calif.
May 3 filed 184,000 shares of common stock, of which
©2;00tt shares are to be offered to public and 92,000 shares
Issued" to promoters. Price—To public, $1 per share; no
proceeds from sale to promoters. Proceeds—For general
corporate purposes. Business—Purchase and resale of
oil fruits grown in Brazil and other countries. Under¬

LeRey R. Haynes, of Pasadena, Calif., is

President.

★Altamtf Corp., El Segundo, Calif.

(7 22-26)
250,000 shares of common stock (par 50
cents). Price—$5.50 per share. Proceeds—For working
capital and other corporate purposes. Underwriter—Van
Alstyne, Noel & Co., New York.
"June

filed

American

Guaranty Corp.

stock

(par $1) being offered to stockholders of record
May 17, 1957 on a basis of one new share for each three

chares held

(with an oversubscription privilege); rights
expire June 28, 1957. Any unsubscribed shares will
offered
to public
residents in Rhode Island and
Massachusetts.
Price—$7.50 per share.
Proceeds—For
working capital.
Office—49 Westminister St., Provi¬
dence, R. I. Underwriter—None.
to

American Hardware Corp.
April 8 filed 118,000 shares of common stock (par $12.50)
being offered in exchange for common stock and class B
common stock of Kwikset
Locks, Inc., at the rate of one

6hare of American Hardware for each two Kwikset
shares

and

55,500 American Hardware
Shares for 150,000 shares of Kwikset class B
etock. The

offer

conditioned

com¬

its acceptance of
outstanding Kwikset
shares by June 28.
Under¬
upon

not less than 85% of the issued and
common

and class B

common

writer—None.
American Income Fund, Inc., New York
May 24 filed 500,000 shares of capital stock (par $1).

Price—At

market.

writer—None.

Proceeds—For

Burton H. Jackson

ment Adviser

—

investment.

Under¬

is President.

Invest¬

Securities Cycle Research Corp., New

York.

American Provident Investors Corp.
Feb. 15 filed 50,000,000 shares of common stock
(par one
cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex. Underwriter—Peoples Securities

Co., J. D. Grey,
cf New Orleans, John S:
Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, ar6
Chairman, Vice-Chairman and President, respectively.
if Artcraft Printers, Fresno, Cplif.
11
(letter of notification) 50 shares of common
stock and $250,000 of certificates of
indebtedness to be
offered to unions,
employers and employees of company.
Price
Of stock, $100 per
share; and of certificates, at
par (in denominations of $50 each). Proceeds—To
pur¬
June

—

chase

additional

equipment

Office—479 No. Fresno

and

for

working capital.
St., Fresno, Calif. Underwriter—

None.

—

Offering—Postponed

indefinitely.-

Bai^ ®ui,dinS & Equipment
11

mon

To- -two

Richter

selling stockholders.
Co., St. Louis, Mo.

Bonanza Oil A Mine

Corp., Suthe rim, Ore.
(letter of notification) 71,710 glares of common
stock (par Iff cents).
Price —75 cents per share.
Pro¬
ceeds—To go to

selling stockholder. Underwriter—L. D.
Friedman &. Co., Inc., New York, N. Y.
'
•

Butler

Brothers, Chicago, III.
May 28 filed 40,000 shares of common stock (par $15)
being offered ,for subscription by certain of the Ben
Franklin franchise holders.
This offer expires at 3:30
p.m. (CDT) on July 17. Price—$23 per share. Business
—Distributors of general merchandise. Underwriter—
None.

C A D

Batteries, Inc.
(letter of notification) 14,000 shares of com¬
(par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per share.
Proceeds
For machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter—None.
March 28

mon

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to
limited partners at the rate of
one $1,000 unit for each $1,000 of his present investment;
then to public. Price—$1,000 per unit.
Proceeds — To
construct plant; to purchase machinery and equipment;

and to reduce outstanding demand notes. Business—Pro¬
duces electro-dynamic shaker and other vibration test

equipment.

new

shares
per

common

of record

shares for each 11

held; rights to expire July 30, 1957.
Price—$11
share. | Proceeds — To increase
capital and surplus

accounts

Office

—

Underwriter—None. Robert C. Lewis, Philip

Efromson

Thomas

and

Gouzoula, all of Winchester,
Mass., are the general partners of this Massachusetts
Limited Partnership.
if California-Oregon Power Co.
June 18 (letter of notification) 9,496 shares of common
stock (par $20) to be offered to employees. Price — At
market (estimated at $31.59 per share).
Proceeds—For
construction, improvement or extension of the company's
facilities.

Office

West

216

—

312 N. 23rd

Underwriter—None.

•

St., Birmingham 3, Ala.

Targets!

advertising of securities in the Chicago Tribune
best prospects in Mid America's
important

reaches your

investment market.

It sells both

groups

of investors-

professional buyers and the general public. For the
complete story of how you can make most effective use
of the Tribune, call the

nearest

Chicago Tribune office.

July.

if Canary Mining Co.
20 (letter of notification)

June

150,000 shares of com¬
($1 per share). Proceeds—
For-mining expenses*'Office — 1334 10th St.; Modesto,
stock.

mon

Calif.

Price—At par

Underwriter—None.

Carolina

to sellers of
•

283,676

Mines, Inc.,

are

Kings Mountain, N. C.

offered

for

subscription

stockholders at the rate of five additional shares for each
four shares held; and fhe remainder will be offered to
the public.

Price—At par ($1 per share).
Proceeds—
loans, for exploration and development work,

To repay

construction and working capital. • Underwriter — None.
A. S. MacCulloch of Vancouver, B. C., Canada, is Presi¬

principal stockholder.

Central
June

Illinois

Light Co. (7/9)
$15,000,000 of first mortgage bonds due

filed

1987.

.V'A :< rr

•

.•».

•

/
•

;

May 2 filed 750,000 shares of common stock. Price—$2
share. Proceeds—To construct mill; for payment on
mining leases and royalty agreement;; UnderwriterSoutheastern Securities Corp., New York.
Conticca International Corp.,

Chicago, III. «/

March 13 filed 558,100 shares of class A eommon stock

(par $1). Price—$5 per share. Proceeds— Tot discharge
notes payable, including bank loans, and long
sum of approximately $1,030,000;
for new equipment; and for working capital;
Under¬
writers
Allen Shaw & Co., 405 Lexington, Ave., New
York 17, N. Y.; and Shaw & Co., San Marino, Calif.
;
term debt in the total

—

Continental Mineral Resources,
June

(letter of notification) 300,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—c/o Registrar &
Transfer Agent, Nevada Agency & Trust Co., Cheney
Bldg., Reno, Nev.
Underwriter—Birkenmayer & Co.,
Denver, Colo.
Continental Mines & Metals Corp., Paterson, N.J,
April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development of properties. Underwriter — Leward
M. Lister &

stock.

Price

Chess Uranium Corp.
May 14 (letter of notification) 600,000 shares of common
stock
(par $1—Canadian). Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada.
Underwriter—
Jean R. Veditz Co., Inc., 160 Broadway, New York.

if C.l.T. Financial Corp., New York (7/15)
24 filed $100,000,000 of serial debentures, having

June

—665

McAlister

business for
other

Bros. &

used

Price—To be

by them in the ordinary course of
of purchasing receivables and

the purpose

corporate

purposes.

Underwriter

—

Salomon

Hutzler, New York.

Corp., Yazoo City, Miss.
May 1 filed 150,000 shares of class C common stock to
materials.

sale

to farmers and other

Price—At

construct

and

users

of fertilizer

($25 per share). Proceeds—
operate facilities for manufacture of
par

anhydrous ammonia. Underwriter—Mississippi Chemical
Corp., Yazoo City, Miss.

— To
Office

Underwriter—

111.

Cougar Mine Development Corp.
(letter of notification) 560,000 shares of com¬
stock (par one cent). Price — 50 cents per share.
Proceeds
For diamond drilling on company's lands,
prospecting expenses, working capital and other corpor¬
ate purposes. Office—83 Campfield St., Irvington, N. J.
Underwriter—Roth & Co., Maplewood, N. J.

if Crowell-Collier Publishing Co.
24 filed $2,730,000 of 5% convertible debentures;
2,500 common stock purchase warrants (exercisable at
$5 per share); 30,000 common stock purchase warrants
(exercisable at $10 per share); and 1,032,000 shares of
common stock
(par $1), of which all of the debentures
and 254,000 common shares have been issued (the latter
June

conversions of $1,270,000 of debentures)
are

issuable

Inc., Exeter, N. H.

■

•

purchase war¬

Daybreak Uranium, Inc., Opportunity,, Wash.
May ? filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash. *

• de Vegh Mutual Fund, New York
20 filed (by amendment) 50,000 additional shares
of capital stock (par $1). Price—At market. Proceeds—

For investment.
•

Electric

Emerson

'•

> ;

(7/9)

Manufacturing Co.

18 filed

$3,390,000 of convertible subordinated de¬
15, 1977 to be offered for subscrip¬
tion by common stockholders on the basis of $100 prinr
cipal amount of debentures for each 20 shares of stock
held of record July 9, 1957; rights to expire on July 23.
Price
To be supplied by amendment.
Proceeds —
For capital expenditures and working capital.
Under¬
writers—Smith, Barney & Co. and Van Alstyne, Noel &
Co., both of New York; and Newhard, Cook & Co., St.
Louis, Mo.
due July

—

Engelberg Huiler Co., Inc.
May 6 (letter of notification) 4,084 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record May 15, 1957 on a 3-for-10 basis; rights
to expire June 15. Price—$25 per share. Proceeds—For
expansion of belt grinder division. Office—831 West Fa¬
yette St., Syracuse, N. Y. Underwriter—None.
Epsco, Inc., Boston, Mass. (7/2)
13 filed 60,000 shares of common stock (no par).

June

Price—To be supplied by
pay

amendment. Proceeds—To re¬

bank loans and for working capital. Underwriter—

W. C. Langley & Co., New York.

Philadelphia, Pa. >
May 14 filed $375,000 of 10-year 6% debentures-5 due
March 1, 1967; 3,750 shares of 7% cumulative preferred
stock (par $100); and 7,500 shares of common stock (par
$1) to be offered in units of $500 of debenture, five
shares of preferred stock and 10 shares of common stock.
Price—$1,010 per unit. Proceeds—Together with other
funds, to purchase, directly or through ^subsidiaries,
drive-in theatres; to acquire other properties, etc.; and
for working capital.-Underwriter—None;
r- ■"-> •'
Corp. of America,

•

*•

and 546,000
conversion of the outstanding

June 7 filed

upon

issuable upon exercise of common stock
rants.

—None.

•

Waukegan,

company.

mon

(no par>. Price—$10 per share. Proceeds—To pur¬
chase real estate and for working capital. Underwriter
'•> *

Ave.,

common

Proceeds

March 15

Eric

Coastal Chemical

be offered for

—

None.

Proceeds—For refunding other

furnishing additional working funds to sub¬
be

At par

($10 per share).
strengthen the current position of the

bentures

Co., Boston, Mass.

• Cooperative Trading, Inc.
June 18 (letter of notification) 5,000 shares of

June

bidding. Probable bidders; Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; The First Boston Corp.;

sidiaries

Inc.

tive

Underwriter—None.5v*

Corp., Memphis, Teftn. 7/15-16)

per

Proceeds—To repay bank loans and for new con¬
struction. Underwriters—To be determined by competi¬

for

warrants.;

exercisable

June

stock
pases
■

Comico

are

Proceeds—From, sale ©f shares

$2,730,000 of debentures; the remaining 32,500 shares are

June 21 Jletter .0f notification). .7,000 shares of common

widely circulated market table
.

Shares to be offered at market. Warrants
at 10 cents per warrant.

March 29 filed 679,469 shares of common stock, of which

Ar Coleman Realty Co.,

m
most

as follows:
Glick
Co., Inc., underwriters of original offering, 140,000
shares; and by three individuals 110,000 shares. Price—

—

Industries, Inc., New York
June 7 filed 300,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development program. Underwriter—R. G. Worth &
Co., Inc., New York. Offering—Expected sometime in

different interest rates and maturity rates.

Hits Both

Ore.

Cameron

debt and for

America's

St., Medford,

Underwriter—None.

supplied by amendment.

'Your

Main

(jointly). Bids—Expected to be received up to noon
(EDT) on July 9 at 300 Park Ave., New York, N. Y.

basis of two

stock

be offered first to present

Sanford, Me.

March 29 filed 250,000 shares of common stock (par 100),
to be issued upon exercise of warrants to purchase the

current

share. Proceeds—
Underwriter |— Scherck
per

offered to stockholders

May 30, 1957

Under¬

Ohio.

Harriman Ripley & Co., Inc.; Merrill Lynch, Pierce, Fenner
& Beane and
Stone & Webster Securities Corp.

Bankers Fire & Marine Insurance
Co.
April 25 (letter of notification) 19,854 shares of

|toc

Fifteenth Ave., Columbus,

Corp. of America
14,285 shares of com¬

(letter of notification)
(par $2). Price—$21

stock

ISSUE

following number of shares and held

165

—

dent and

deben¬
tures due June 1, 1977. Price—To be
supplied by amendProceeds
For working, capital and to reduce
short-term bank
borrowings. Underwriters — Salomon
Bros. & Hutzler and Lehman
Brothers, both of New
York.

June

Colonial Aircraft Corp.,

Office

writer—None.

Associates Investment Co.

May 24 filed $20,000,000 of 20-year subordinated

REVISED

if Beta Theta Pi Building Association
(letter of notification) $50,000 of 4^2% deben¬
tures maturing during 1967. Price—At par (In multiples
of $1,000).
Proceeds—To construct a fraternity house.

June 21

common
common

ITEMS

•

—

May 13 (letter of notification) 38,651 shares of common

mon

Registration

Feb. 11

writer—None.

ADDITIONS

SINCE

Fed era (Insurance

offered

Co.-

400,tKW shates o£ capital *gtoelc (par $4} to
in exchahge&r* 4Q9J10G shares* of Colonial

Volume

185

Number

5650

The Commercial and Financial Chronicle

Life

Co.

Insurance

the

basis

Share.

America capital

Federal

four

stock

for

Government

(par $10)

each

Colonial

Offer will become'effective upon acceptance by

May

tures

due

holders of 90%

of Colonial stock, or, at option of Fed¬
eral, acceptance by not less than 80% of the Colcfnial
shares.
Offer will continue to and including July 26,
extended.

unless

Dealer-Managrers

—

The

First

Boston

Corp. and Spencer Trask & Co., both of New
Expected to become effective today (June 27).

York.
<

First Mississippi Corp., Jackson, Miss.
.April 10 filed 10,000,000 shares of common stock (par
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one share to receive an option to purchase two addi¬
tional shares at any time prior to Nov. 30, 1959 at $4.50
per share. The price of the -remaining 2,500,000 shares
will be $5 each, of which 500,060 shares are to be re¬
served for exercise of options to be granted to directors,
officers and employees.
Proceeds — For industrial and
-

■

business

development

Mississippi

Underwriter—None.
-

and

filed

Employees Corp.
convertible' capital deben¬

^Insured Accounts Fund, Boston, Mass.

$652,000*5%

common

of $100

5,000 shares of beneficial interest. Price—
$5,000 per share. Proceeds—For investment. Business.—

30, 1967, being offered for subscription
stockholders of record June 10, 1957 at the
of debentures for each 20 shares of com¬

held; rights to expire on July 8, 1957. Price
—100% of principal amount. Proceeds
For working
capital. Underwriters—Johnston, Lemon & Co., Wash¬
ington, D. C.; and Eastman Dillon, Union Securities &
Co., New York.
—

one cent). Price—$1
per share. Proceeds—To equip and
establish five super launderettes and for working cap¬

ital.

' *

■

v':

•

//V' '

interest

the Trust.

- Price—$1,000
per certificate.
Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.
Underwriter—None.
'
v

Fluorspar Corp. of America

Fidelity Insurance Co.

(7/15)

•?

International Insurance Investments* Inc.
118,140 shares-of common stock (par =$1)
and warrants to purchase 354,420 additional
shaife^ of
stock to be offered in units of one common
share and three warrants to buy three common shares;
common

Service, Inc., Clinton, N. Y.
May 29 (letter of notification) $75,000 of first mortgage
5% sinking fund bonds due May 1, 1965. Price^-90% of
principal amount. Proceeds—For equipment repayment
of debt and working capital.
Underwriter — Mohawk
Valley Investing Co., Inc., Utica, N. Y.

Price—$3.75 per unit. Each Warrant entitles holder to
purchase one common share at $2.75 p^r share.. Proceeds

■

—To acquire stock of fire insurance unit and for
general

corporate purposes.

Office
Englewood, Colo. Under¬
Underwriters, Inc., also of Englewood,

writer—American

—

Colo.

completion of test wells; for acquisition and exploration
of additional properties; and for working capital. Under¬
writer—None. W. Clay Merideth is President.

.-v.

;

International

June 10 filed

and 800 Accumulative Plan certificates. Price—At mar¬

investment.

supplied by amend¬
•" / ; ?

tag capital, etc.
Underwriter—Franklin Securities Co.,
Dallas, Texas/ // .*. V .J ■v/;...
-y

Ignacio Oil & Gas Co., Denver, Colo.
May 20 filed 650,000 shares of common stock (par 50
cents). Price—$1 per share. Proceeds—For drilling and

Proceeds—For

March 28 filed 100,000 shares of common stock
(no par)
be offered for subscription by stockholders at the
rate of one new share for each seven shares held. Price
—To he supplied by amendment. Proceeds—For work-1

it Founders Mutual Depositor Corp., Denver, Colo.
June 19 filed (by amendment) the following additional
securities: $32,000 Systematic Payment Plan certificates
ket.

Household Gas

Underwriters—Names

ment.

Haydu Electronic Products, Inc.
June 3 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office—1426 West Front
St., Plainfield, N. J. Underwriter—Berry & Co., Plainfield and

Newark, N. J.

open-end investment trust.

International Duplex Corp., San Francisco, Calif*
Dec. 21, 1956 filed 500,000 shares of common stock
(par

stock

mon

June 19 filed

June

Holy Land Import Corp., Houston, Texas
Feb. 27 (letter of notification) 100,000 shares of common
] «tock. Price—At
par ($3 per share). Proceeds—For in¬
South.
ventory, working capital, etc. Underwriter—Benjamin
& Co., Houston, Tex.

the

Florida Trust, Pempano Beach, Fla.
March 4 filed =850 Certificates of beneficial

rate

(3005)

,/y.

it Island Inn Co.
/
VU',:
June 20 (letter of notification) 3,750 shares of common
stock (par $1).
Price—$50 per share.
Proceeds—For
working capital.
Office—E-1006 First National Bank;
Bldg., Saint Paul, Minn. Underwriter—None.

v'y/' Continued

on page

May 28 (letter of notification) 30,000 shares of common
stock (par $1) to be offered for subscription by common
the basis of

stockholders

shares held.

Price—$8.50 per share.

ing operations.

one

S. E.

Office—433

share for each four

new

NEW

Proceeds—For min¬
June

Underwriter—None.

Ore.

(Bids

of the United

July 16 (Tuesday)

(Thursday)
CDT)

noon

June 28
First National

Jersey Central Power & Light Co
(Bids 11

$2,235,000

July 1

(Offering

July 17

Precision

States.

Transformer

Corp

Sonoco

Corp. <jointly); Kuhn, Loeb & Co., Lehman Brothers
and Gibre, Forgan & Co. (jointly). Bids — Had been
scheduled to be received up to 3:45 p.m. (EDT) on May

Southern

Products

Tracer lab,

Common

California Edison

€54, 101 Indiana Ave., N. W., Washington 25,
C., bilt bidding has been postponed.
\

be invited)

July 22

July 8

(Bids

Emerson

lower

than

bid

price

nor

higher than

Inc.

;

and The

<fc

Co.)

a.m.

Montreal

Noel & Co.; and Newhard,

(Bids

Debenture*
$30,000,000

Pacific Telephone & Telegraph Co

Duke

(Wednesday)

Common

$20,000,000

Bonds

Lewis

Co.)

(Wednesday)

September 11
New Jersey

Debentures

Bell Telephone Co
(Bids to be invited)

Southwestern

$30,000,000

(Wednesday)

"September 18

Equipment Trust Ctfs.

Norfoik & Western Ry

be invited)

(Tuesday)

Bell Telephone

(Bids to be invited)

$300,000

(Tuesday),

be invited) $50,000,000

October 1
Debentures

Bonds
$15,000,000

Power

Debentures

$100,000,000

Utah Power & Light Co

(par $4)

Allied Paper

(Monday)

Corp..-.

(Bids

Debentures

C. I. T. Financial Corp
(Salomon Bros.

price not

(Bids

Debentures
Hutzler)

the asking

Common

(Southeastern Securities Corp.)

(Offering

stockholders—to

Franklin Securities Co.)

(Bids 11

Common

underwritten

100,000 shares

Class A Common

Polymer Corp.
(A. G. Edwards & Sons)

Texas

Electric

...

Western
•

Service

70,000 shares

3c Co., Inc.)

a.m.

November

(Tuesday)

EST)

(Tuesday)

EST)

$28,000,000

Preferred

(Bids 11 a.m. EST) $7,000,000

(Tuesday)

_Bonds

Virginia Electric & Power Co
—*

Bonds

$20,000,000

Bonds
a.m.

December 3

Common
400,000 shares

sharee

Ohio Power Co

(Bids 11:30 a.m. EDT) $16,000,000

Sanders & Co. and Rauscher, Pierce

400,000

Ohio Power Co

Bonds I

Hemisphere Petroleum Co

Common

Invited)

Indiana & Michigan Electric Co

$1,500,000

International Fidelity Insurance Co

October 15

$100,000,000

Comico Corp.

Bonds
$15,000,000

lie Invited)

Utah Power & Light Co

(Glore, Forgan & Co.) $3,500,000

New

$90,000,000

invited)

(Bids to be invited)

(Bids to

Bonds

*•
.Debentures

Louisville Gas & Electric Co

(Thursday)

July 15

Moulding Corp.

St., Terre Saute, Ind.

$15,000,000

September 10

Bonds
EDT)

(Minn.)—__—Bonds

(Tuesday)

August 30

stockholders—underwritten

(Tuesday)

EOT)

a.m.

September 4

Co.
to

invited)

(Bids to

(Offering

Equipment Trust Ctfs.

$3,390,000

Debentures

July 11

(Wednesday)

August 13

(Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.;
and Laurence M. Marks <te Co.) $30,000,000

Merchants

$50,000,000

Northern States Power Co.

Debentures

(Offering to stockholders—bids 11 a.m. EDT) 376,600 shares

March

Inc., Ill S. 7th

EDT)

a.m.

(Bids

Washington Water Power Co

22 filed $1,000,000 of 6% convertible debentures
31, 1967. Price—At par. Proceeds—To in¬
crease
company's activities and for working -capital.
Office—Henderson, Ky.. Underwriter—Cook Enterprise,

(Tuesday)

Telephone Co. of Pennsylvania. ..Debentures
July 31

(Bids to be invited) $25,000,000

May
due

Equip. Trust Ctfs.

Norfolk & Western Ry

(City of)

a.m.

(Thursday)

Robinson-

Pacific Power & Light Co

^.Bonds /
? 4 «»

(Bids to be invited) about $9,000,000

$15,000,000

EDT)

156,607

Bonds

EDT)

noon

July 25

(Bids 11

Gibbs Automatic

*
,

(Bids to be, invited).- $60,000,000

(Bids 11

(Offering to stockholders—underwritten by Blyth & Co., Inc.;
First of Michigan Corp.; and Watling, Lerchen & Co.)

price quoted on the Exchange at time of such offering.
Proceeds—To J. Paul Getty, President, who is the selling
stockholder. Underwriter—None.
.

(Tuesday)

July 30
Bell

Manufacturers National Bank of Detroit-.Common

Exchange. Certain private placements may
the

•/'\

V'y

(Bids to be

(Bids

be made. Price—Either at the market or at a

$1,375,000

Co.^v4*~--

Pacific Gas & Electric

(

West Penn Power Co..

the

July 10 (Wednesday)

Georgia Casualty & Surety Co.

Co.)

Common

Electric Mfg. Co

(Bids

Corp.

York -Stock

Wisconsin Telephone Co...

Dealer-Managers—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster Securities

time

Noel

Southern Pacific Co

Co.,

Cook

15.

,/v,

Bonds

$15,000,000

(Smith, Barney & Co.; Van Alstyne,

-preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
.of preferred stock will be made unless at least 80% of
.the Peninsular preferred stock is exchanged.
Offer

time

(Monday)

Evans

and one-half share of General

sale from

common

Central Illinois Light Co..

•

for

July 9 (Tuesday)

General Telephone Corp., New York

offered

Alstyne,

July 23

Humphrey Co., Inc.) $1,900,000

•May 24 filed 1,480,787 shares of common stock (par $10)
and 170,000 shares of 5.28% convertible preferred stock
(par $50) being offered in exchange for common and
? preferred stocks
of Peninsular Telephone Co. on the
•basis of 1.3 shares of General common for each share

EDT)

a.m.

Phoenix Investment Co

■it General -Parking, Inc.
June 18 (letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.

$5,000,000 notes und 350,000

(Bids 11

(Clement A.

Getty Oil Co., Wilmington, Del.
June 17 filed 100,000 shares of common stock

Commoii

(Van

(Cruttenden/Fodesta & Co.; Cantor, Fitzgerald & Co.; and

Application is still pending with SEC.

May 10 (letter of notification) 10,000 shares of common
stock (par $5) to be offered first to stockholders and
agents, then to the public. Price—$30 per share. Pro¬
ceeds —To expand and finance the company's regular
.line of business. Office—70 Fairlie St., N. W., Atlanta,
Ga. Underwriter—None. Dan D. Dominey is President.

(Tuesday)

Rochester Gas & Electric Corp

expansion and working *eapital. Underwriter—None
Offering to be made through selected dealers.

will expire on July

(Monday)

Altamil Corp.

Westheimer & Co.)

named.

common,

/i J

-.--...-Commoh"*

...Bonds

$40,000,000

(

National

preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—

Peninsular

,/.j

(Thursday)

(Offering to stockholders—no underwriting) 420,778 shares'">•

Epsco, Inc.;
,rr.i.rf.y
-^Common;
\
;/v
(W, C. Langley <fc Cp.) 60,000 shares
^
y.

General Credit, Inc., Washington, D. C.'
>
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing ftmd debentures, due Sept. 1, 1971, with detachable
warrants to purchase 160,000 shares of participating

For

200,000

Mercast Corp.

;

July 2

Corp.)

July 18

13 at Room

Common
Higginson

Inc.) $299,880

Inc.
(Lee

(Offering to stockholders—underwritten by R. S. Dickson &
Co., Inc., and G. H. Crawford & Co., Inc.) 60,000 shares

(Bids

>*/

Equip. Trust Ctfsp
$4,965,000

Debentures

(John R. Boland & Co.,

ton

(Wednesday)

(Bids to be invited)

underwriting) 584,176 shares

Common

stockholders—underwritten
by
Eastman
Union Securities & Co.) 333,382 shares

Great Northern Ry

Mountain States Telephone & Telegraph.-Common

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬

Bonds

$15,000,000

Dillon,

(Monday)

(Offering to stockholders—no

EDT)

a.m.

Minneapolis-Honeywell Regulator Co.

(Friday)

City Bank of New York.__Common

(Offering to stockholders—underwritten by
The First Boston Corp.) $120,000,000

General Aniline & Film Corp.* New York
Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬

Attorney General

Chicago & North Western Ry.__Equip. Trust Cfts.

Frigikar Corp.
June 6 (letter of notification) 9,000 shares of common
stock (par 50 cents).
Price — At market (estimated
$5.50 per share). Proceeds—To go to Daniel D. Dilling¬
ham. Office—1602 Cochran St., Dallas, Texas. Under¬
writer—Muir Investment Corp., San Antonio, Texas.

ceeds—To the

CALENDAR

ISSUE

74th Ave., Portland,

(Bids to be~invited)

$20,000,000

The Commercial and Financial Chronicle

(3006)

Continued

jrom page 37

Isthmus

'•

Steamship & Salvage Co., Miami, Fla.

(letter of notification) 300,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds

May 21
mon

—To purchase a ship and for working
writer—Anderson Cook Co., Inc., Palm

capital.

Under¬

Beach, Fla.

public works. Underwriter—To be determined by com¬
petitive bidding. Shields & Co., Halsey, Stuart & Co.
Inc., Savard & Hart and Salomon Bros. & Hutzler,
(jointly); Lehman Brothers, White, Weld & Co., East¬
man
Dillon, Union Securities & Co. and Blyth & Co.,
Inc. (jointly); The First Boston Corp.
Bids—Expected
to be received up to 2:30 p.m. (EDT) on July 10.

offered in

rities

Co.; Salomon Bros. & Hutzler
Lynch, Pierce, Fenner & Beane (jointly).
received up to 11 a.m. (EDT) on July 16
General Public Utilities Corp., 67 Broad
York 4, N.

and

•

Klassetv

Enterprises, Inc., Hayward, Calif.

May 29 (letter of notification) 300,000 shares of capital
stock, of which 100,000 shares are being offered to out¬
standing shareholders in exchange for such outstanding
shares and certain claims against the company; the re¬
maining 200,000 shares are to be offered to the public.
Price—At par ($1 per share).
Proceeds^-For working
Office—22105 Meekland Ave., Hayward, Calif.
Underwriter
Stephenson, Leydecker & Co., Oakland,
capital.

—

Calif.

Telegraph

program.Underwriter—To

competitive

bidding.- Probable

bid¬

Lehman Brothers, Eastman Dillion. Union Securi¬
ties & Co., Bear, Stearns & Co. and Dean Witter & Co.

filed

584,176 shares of capital stock (par $100)
for subscription by stockholders of record
1957 on the basis of one new share for each five
shares held; rights to expire on July 31.
Subscription
warrants are expected to be mailed on July 1. Price—
At par ($100 per share).
Proceeds—To repay advances
from American Telephone & Telegraph Co., the parent,
which owns 86.74% of the presently outstanding shares.

(jointly); Kidder, Peabody, & Co,; Ladenburg, Thalmann
Co.
Bids
Expected to be received up to 11 a.m.
(EDT) on July 10.
"

June 20,

Underwriter—None.

Mutual

construction

determined

Co.

ders:

Pancal Oil Corp'. /V/
./■
.7;
May 13 (letter of notification) 299,000 shares of common
stock (par 10 cents).; Price—$1 per share.
Proceeds—
For

oil drilling expenses.
Office—27 William St., New
York, N.': Y/V Underwriter — Bush Securities Co., New
York, N. YAy.]"

'■'

Investment Trust for Profit

/V-

Sharing-

Retirement

Plans, Inc., Richmond, Va.
March 19 filed 50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.
Price—At market.

^ Little Queen Mines, Inc., Atlanta, Ida.
(letter of notification) 2,200,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses. Underwriter—None

Telephone

be offered

Power

Proceeds—For

States

(7/1)
June

Pacific

& Light Co. (7/10)
376,600 shares of common stock (par $6.50)
to be offered for subscription by common stockholders
of record July 10, 1957 on the basis of one new share for
each 10 shares held; rights to expire on Aug.*. I.
Sub¬
scription .warrants are expected to be mailed on July 12V

Investment Service Co., Denver,

—

dune 4 filed

Mountain

Merrill

Bids—To be
at office of
Street, New

Underwriter

mill.

units

Underwriters—White, Weld &
Co., New York; Wm. P. Harper & Son & Co., Seattle,
Wash. Offering—Expected sometime in first half of July.

(par 50 cents). Price—$1 per share. Proceeds—For ex¬
ploration and related purposes, including construction of
Colo.

—

for construction program.

^ Mount Wilson Mines, Inc., Tetluride, Colo.
June 24 filed 400,000 shares of class A common stock

Thursday, June 27, 1957

of a $50 note and one common share.
supplied by amendment. Proceeds — To
repay short-term debt and other current, liabilities and

Price

Jersey Central Power & Light Co. (7/16)
May 29 filed $15,000,000 of first mortgage bonds due
1987. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Kidder,
Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬

Paramount

June 3

Proceeds—For investment. President

—T. Coleman Andrews.

Office

5001

—

Enterprises, lnc.<..
(letter of notification) 120,000 shares of

stock (par 10 cents). Price—$2.50 per share.
For payment of loans and working capital,

West Broad St.,

Phonograph records!

Office

383

common -

Proceeds—
x

Business—

Concord

Ave., New
Underwriter—Amos Treat & Co., = IncJ New

June 10

Richmond, Va.

York, N. Y.

.York.'^5v,f7^>;,«

* Lobitos Oilfields, Ltd.
June 12 filed 80,000 American depositary receipts lor
ordinary registered stock. Depositary—Guaranty Trust

Mutual Investors Corp. of New York
May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages.. Off ice—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart

Co. of New York.

Securities Corp., New

—

Marion

Finance Corp.,

Ardmore, Pa.
March 28 filed $250,000 of 6% renewable subordinated
debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At par (in units of $100 and
$500 each). Proceeds—For working capital. Office—17
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New York; and Berry & Co., Plainfield, N. J.
Mascot

Mines, Inc., Kellogg, Idaho
June 3 (letter of notification) 800,000 shares of common
stock.
Price—At par (171/? cents per share). Proceeds
—For mining expenses.
Office—Sidney Bldg., Kellogg,
Idaho, Malcolm C. Brown is President. Underwriter—
Standard Securities Corp., Spokane, Wash., and Kellogg,
Idaho.

^rMercast Corp., New York, N. Y.
June

filed

420,778

(7/18)

capital

stock

(par

cents)

to be offered for subscription by stockholders of

record

July 18, 1957

the basis of two new snares for
each three shares held. Price—To be supplied by amend¬
ment.
Proceeds—For expansion program, to repay out¬
standing notes to Atlas Corp. and for working capital.
on

Underwriter—None.

Merchants Co.
June 10

ble

(7/11)
(letter of notification) $300,000 of 6% converti¬

subordinate

debentures

due

1972

offered

and

preferred stockholders of record of July
11, 1957. (Debentures are convertible into common stock
subsequent to July 31, 1962 and prior to Aug. 1, 1971,
in limited amounts and freely thereafter as
described).
Price—At par in units of $125 each.
Proceeds—For
working capital.1 Office—300 East Pine St., Hattiesburg,
common

Miss.

Underwriter—Lewis &

Co., Jackson, Miss.

Pepsi-Cola Mokan Bottlers,. Inc. - > ^
1 :'
April 11 (letter of notification) 60,000 shares of common
stock (par-50 cents).. Price—$5 per share.
Proceeds—
For general funds of the
company. : Office—207 West'

York.

8th St., Coffeyville, Kan. Underwriter
& CO., St.; Louis,
Mo.;;x;y;

Nassau

Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock. Price—At
market.
Proceeds—For investment./.Office—10 Nassau

St., Princeton, N. J.

Investment Advisor
Hoisington, Inc., same address...
:
v
f

National

Price—$1.25

per

properties; for

National

share.

acted

deposit of at least
The offer will expire'

upon

shares.
—

None.

Lehman

Brothers

intermediary in negotiating the transaction. V

Phoenix Investment Co., Atlanta, Ga. (7/8-12)
June 14 filed-380,000 shares of common
stockV(par $1).

Price—$5 per share. Proceeds—To be; loaned to Peachtree

Road

order to

Tea

contract

Development Corp. and to Mimosa Corp. in
permit these companies to pay the balance of
prices and closing costs incident to the purr

chase of certain parcels of land. Underwriters—Clement

A. Evans & Co., Inc., and The Robinson-Humphrey Co.,
Inc., both of Atlanta. Ga.
\

The offer

will expire on July 22, 1957, unless extended.
4

Telefilm

Associates, Inc. (7/2-3)
June 11 filed $5,000,000 of. 6% sinking fund subordinated
notes due June 15, 1962, with common stock purchase
warrants attached; and 350,000 shares of common stock

effective

common

Underwriter

•

Co., Chicago, III. /
June 12 filed 48,720 shares of common stock (par $5) to
be offered in exchange for common stock of Tolerton
& Warfield Co. of Sioux City, Iowa, on the basis of 7 Ms

National

19/

July

ore

shares of National Tea for each Tolerton share.

become

will

offer

346,500 Milprint

one

Proceeds—For acquisi¬
testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc., .Underwriter—Gearhart & Otis, Inc., New York. Statement ex¬
pected to be amended.
tion

G. F. Church

•
Philip Morris," Inc., New York
May 28 filed 385,000 shares of common stock (par $5)
being offered in exchange for common stock of Milprint,
Inc., Milwaukee, Wis., on a share-for-share basis.; The

Lithium

Corp., New York
Feb. 19 filed 3,120,000 shares of common stock (par
cent).

;•

Harland W.

—

Plymouth Fund, Inc., Miami, Fla. :
5 fiied 500,000 shares of capital stock

Price—At

market.

Proceeds—For

Feb.

(par

investment.

$1).

Under¬

writer

Plymouth Bond & Share Corp.; Miami, Fla.
Joseph A. Rayvis, also of Miami, is President.
-

(par 10 cents).

Each $500 note will carry a warrant to
purchase 50 shares of common stock. Price — For
notes, 100% and accrued interest; for stock, to be sup¬
plied by amendment. Proceeds—To retire $5,000,000 of

• Polymer Corp., Reading,..Fa.
•June

filed. 70,000 shares

(7/18-16)
stock,

common

class

(par $1).

Price

Tobe /supplied

—-

;by amendment/ Pro'-..

ipeeds^T^
loans,, ip ..purchase equipment;, to
indebtedness; and for working capital and gen- .; -advance additional working capital .to
company's wholly--!
corporate purposes. .Underwriters
Cruttenden, i owned English subsidiary, to acquire additional Jand and
Podesta & Co., Chicago, 111.; Captor, Fitzgerald & Co.,
construct ia new.'researcfi - development laboratory,..and
Beverly Hills, Calif.; and Westheimer & Co.^Cincinnati,
for other/real -estate purchases and working capital..Un¬
Ohio.
.'■/
V V":
derwriter—rA. G.. Edwards & Sons, St. Louis, Mo.
> 1 ,
New Brunswick
(Province of)
Portland Gas G Coke-- Co.
Dec. 14, 1956, filed $12,000,000 of 25-year
sinking fund
May 22 filed 226,194 shares of common stock (par $9.50)
debentures due Jan. 1, 1982. Price—To be supplied
by
being offered for subscription by common stockholders
amendment.
Proceeds—To be/, advanced to The New
\ .of record June 10, 1957 on the basis of one new share for
Brunswick Electric Power Commission to
repay bank -• each five
shares .-held; rights to expire on July 1.
loans. Underwriter—Halsey, Stuart & Co.
Inc., New York
Price -V $ 16.25 per share.
Proceeds —* For construction

current

eral

■

Mid Central Oil &

Minerals, Inc.
June 13 (letter of notification) 300,000 shares of common
stock (par two cents). Price—$1 per share. Proceeds—
For mining expenses. Office—Cheney Bldg.,
Reno, Nev.
Underwriter—None.

-A-Mid-Way Recreation, Inc.
June 5 (letter of notification—by
amendment) 14,000
shares of 6% cumulative preferred stock (par
$10) and
15,000 shares of common stock (no par). Price—$10 per
share. Proceeds—For construction of building, etc. and
general corporate purposes.
Office—213 Jensen Road,
Vestal, N. Y. Underwriter—None.

ir-Minneapolis-Honeywell

Regulator Co.

(7/16)

June 24 filed 333,382 shares of common stock
(par $1.50)
to be offered for subscription by common stockholders

of£ record July 16, 1957 at the rate of
for

each

Aug.

one share of new
rights to expire on or about
To be supplied by amendment.

shares held;

1957.

Price

—

Proceeds—For
man

expansion program. Underwriter—East¬
Dillon, Union Securities & Co., New York.

Mississippi Valley Portland Cement Co.
Dec. 26 filed 1,600,000 shares of capital stock
(no

whigh 708,511 shares

are

subject to

and

Chicago.

preemptive

remainder

Proceeds—For completion of plant,
provide for general creditors and for working capital.

Office—Jackson, Miss. Underwriter—None, offering to
be made through company's own agents.
Monticello Associates, Inc.
Feb. 18 (letter of

(City of)

(7/10)

$7,200,000 of 5^4% sinking fund debentures
due Feb. 15, 1977 and $17,800,000 of 5Vi%
sinking fund
debentures due March 1, 1977. Price
To be supplied
by amendment. Proceeds—For local improvement and

—

employees;/ and
share.,-, Proceeds—

•

mon

Mid

City, Utah. Underwriter—
Securities, Inc. of Utah, Salt Lake City,

America
'

Outboard

Marine

.in
at

one

present stockholders

the

May

stock

None.

•

Pacific

Natural

Gas

•

Underwriter—
_

;

Boland

stock

(par $1)

to be

stock

stock.

common

Priced-

Service. Electric

Gas

Co.

29 filed 250,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.

rill Lynch, Pierce, Fenner & Beane, New York. Offering
—Temporarily delayed.
.

•

Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
)f which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter
Price—$5 per share.

Proceeds—To retire $125,000 of outstanding 15% deben¬
tions,

well

Inc.;

and

rr»iP3«!p«

...

Pyramid Productions, Inc., New York

tures

Co., Longview, Wash.

and 20,000 shares of common

& Co., Inc., New York.

filed 209,612 shares of

York.

$173,180 debt to Trans-Union Produc¬

for

working

capital.

TTnHf»rwri*pr— v

Business—Tele-

Aaron

Co., New

Offering—Date indefinite.

Resource

May 28 filed $1,000,000 of subordinate interim notes due
1963

Proceeds—For construction program. Underwriter—Mer¬

—

Office—Buckfield, Me.

per

Prudential Investment Corp. of South Carolina'

Public

basis

preemptive rights, thereafter to the public.
Price—
par ($5 per share).
Proceeds
For converting ex¬
change at Turner from a manual service to a dial auto¬

29,400

Proceeds —For general corporate pureposes.
Underwriter — None. J C Todd of folumbt*.
S. C., is President and Board Chairman. Statement ef-

exchange.

•

April 30

/&6T/ and

20/fcehts)tqi';be offered

debentures and

$500 of

$510 per unit,
stock at $102

Vdue;;/fune//L

stock ;(par

Si.20 per share.

debentures

common

writer—John
■

new

Oxford County Telephone &
Telegraph Co.
April 18 (letter of notification) 6,000 shares of common
offered

(letter of notification) $294,000 Of 6% lO-yegr

units

Brothers,/New; York.

•_Corp.:f'(7/l-3^;

$100 of debentures and 10 shares
unit. Proceeds — Torepay out¬
standing indebtedness and for general corporate pureposes.
Office—2218 W. Lake St., Chicago, 111. Under-

,'!• of

expire on July
l,f 1957. Price—$27 per share. Proceeds—For capital ex¬
penditures. Underwriter—Morgan Stanley & Co., New
,

June 12

.fective June 19. '

holders of record June 14, 1957. on the basis of
share for each 15 shares held;
rights to

Precision Transformer

convertible

Corp.

May 24 filed 486,058 shares of common stock
(par 30
cents) being offered for subscription by common stock¬

•

' / shares

com¬

stock.
Price—At par ($10 cents per
share). Pro¬
ceeds—For development of oil and
gas properties. Office
—725 Judge Bldg., Salt Lake

matic

June 7 filed

perI

Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of

stock to be

Montreal

Price—$16

Oil

station. Business—Has been
processing and selling of gravel. Office—203
Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corn..

Philadelphia, Pa.

unsubscribed

Underwriter—None.

York.

roadside restaurant and gas

basis;
public.

construction, payment / of current liabilities • and
working capital. Office—1313 Sixth St., Redmond, Ore.

notification) 300,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds
For
capital expenditures, including construction of
motel,
—

For

Utah.

offer of rescission.

program. *■ Underwriter^Lehman

■

Telephone Co.

March 28 (letter of notification) 7,209 shares ,q1 common
stock (par $5) to be offered, first to
stockholders on

par), of

Price—$3 per share.

Offering—Indefinitely postponed./

Northwest

Fund, Inc., New

March 29 filed 100,000 shares of
Price—At

market.

York
common

stock

Proceeds—For investment.-

(par $1).
Under-

Number 5650 *.

185

Volume

D. John Heyman of

writer—None.

Co., Inc., 60 Broadway, New

each five shares

it Rio Grande Mining Co.
June 18 (letter of notification) 230,000 shares of cornman stock
(par $1). Price—$1.25 per share. Proceeds—
For mining expenses. Address — Box 968, Taos, N. M.

Electric Corp.

Gas

May 29 filed $15,000,000 of

it Systematic Parking Co.
17 (letter of notification)
mon
stock.
Price—At par ($1

(7/2)

For

first mortgage bonds, series

of a new concept of mechanical
Office—515 Maritime Bldg., 911 Western Ave.,

Texam Oil Corp., San

parking.
Seattle,
;

Corp., St. Louis, Mo.

C cumulative pre¬
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder
Underwriter — Yates, Heitner & Woods, St. Louis, Mo.
Offering-—Expected in the near future.

(par $57).

it St. Paul Tire &

shares of capital stock

offered

by holders of not less than 240,000
outstanding Western stock. V .

shares (80%) of the

it Shasta Minerals

*• Sire

for

10,000 shares.

Dickson

*•

Inc., Charlotte, N. C.; and G. H.
Columbia, S. C.

S. C.

May 21

East

Orange,

Fund

of Fortune, Inc., Fortune

II, Inc., Fortune III,

IV, Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J. Offering—Expected
Inc. and Fortune

early in July

Strato-Miss>les,

Inc.

notification) 300,000 shares of common
stock (par 10 cents). Priee—$1 per share. Proceeds—To
develop Hatfield propulsion system, and other projects;
for purchase of additional facilities and for working
capital.
—t0 produce machmerv and equip¬
ment.- Office—70 East 45th St., New York, N. Y.
Un¬
derwriter— Kesselman & Co., Inc., New York.
June 7

•

(letter of

Summers

offered for

shares of common stock (par $1) to

subscription by common stockholders

graph Co.,

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp. Bids—,
Expected to be received up to 11 a.m. (EDT) on July 9
at Room 2315, 195 Broadway, New York N. Y.
Woodland Oil & Gas Co., Inc., New York

Ralph J. Ursillo, General Jdanager

Price—$1.50 per share. Proceeds—To
oil wells on the company's Pennsyl¬
vania and Kentucky properties and for two "deep tests"
on
its Pennsylvania property, as well as for working
the company.

capital.

Underwriter—Name to be supplied by amend¬

ment.

Prospective Offerings
May 16 it was

of common stock (par $5)

Engineering Corp.

(letter of notification) 100,000

Laboratory, Inc.
announced company plans to issue and sell
$2,000,000 of 15-year 5y4% unsecured subordinated con¬
vertible debentures. American
Research & Develop¬
ment Corp., owner of 31,500 shares or 15.8% of Airborne's stock, propose to purchase $320,000 of the new
debentures.
Proceeds—Together with $4,000,000 to be
borrowed from institutional investors, for a building and
Airborne Instruments

Proceeds—To pay for aircraft and other
equipment.
Underwriter—None. Hughes Tool Co., the
holder of 2,476,142 shares of TWA common stock may
purchase any unsubscribed shares.

shares of class A

(par 10 cents).
Price—$1.50 per share
working capital; machine tools; equip¬

proprietary development
Office — 4932 St
Elmo Ave., Bethesda 14. Md
Underwriter—Whitney &
Co
Inc.. Washington. D C
and

S. Semiconductor

28 filed

selling stockholder,

$13 per share.

ment

700,000 shares of common stock (par 10
cents), of which 600,000 shares are to be offered for
account of company and 100,000 shares for account of a
May

being offered for subscription by common stockholders
of record June 17, 1957 at the rate of one new share
f<">r each share held; rights to expire on July 8. Price—

stock

Proceeds—To repay approximately $28,American Telephone & Tele¬

the parent, and for general corporate pur¬

bidding.

Inc., New York

May 28 filed 3,337,036 shares

Proceeds—For

Milwaukee, Wis. (7/9)
35-year debentures due

poses.

^ommon

1992.

Colo.

York.

$30,000,000

filed

500,000 of advances from

—

Trinac

This offer which is to

drill and complete

Wayne Jewell Co., Denver,

Feb

July

it Tracerlab, Inc., Walt am, Mass. (7/17)
June 19 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.- Proceeds—To re¬
duce trade and other current indebtedness of company
and its subsidiaries and for general corporate purposes.
Underwriter
Lee Higginson Corp., Boston and New

P"'rr:coDe Co.

May 20 filed 250.080

Wisconsin Telephone Co.,
June

stock (no par)

stock (par $1)
into this Fund

held.

12, is conditioned upon the acceptance by
of at least 130,000 shares of Kable stock (about

Holders of Kable stock who own less than 51
reeeive cash at the rate of $26 per share.
Office—Racine, Wis. — Underwriter — None. Statement
effective June 10.
• " j

Canton, O.

N. J.

May 10 filed 100,000 shares of common
to be offered in connection with merger

Lithographing Co.

will

Airlines,

85%).

World

Printing

15 filed $3,037,640 of 5% serial notes due Dec. 1,
to
1967, inclusive being offered,, together, with

holders

May 6 (letter of notification) 6,000,000 shares of common
(par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—

Trans

Fund, Inc.,

shares of common stock (par 50c).

$6 in cash for each share

stock

Calif.

(EDT)
Broad

expire July

Titanic Oil Co.

(7/1)
refunding mortgage
bonds, series I, due July 1, 1982. Proceeds — To retire
bank loans and for construction program. Underwriters
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp. and Dean Witter & Co.
(jointly);
Kuhn, Loeb & Co. Bids—Exnectpd to bp rerpi
' •
n
9 a.m. (PDT) on July 1 at 601 West 5th St., Los Angeles,

Eastman

cash, in exchange for 151,882 shares of capital stock of
Kable Printing Co.- (111.) on the basis of $20 of notes and

New York.

Edison Co.
$40,000,000 of first and

Inc.;

Hemisphere Petroleum Corp.

19 filed 400,000

Western

1958

$40 per share. Proceeds—For capital improvement and
working capital.
Underwriter—Hornblower■ & Weeks,

"'.Southern California

& Co.

it Western Hemisphere Petroleum Corp. (7/15-19)
June 20 filed 400,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—For oil exploration and development in Canada, Cuba,

May

Houston, Tex.

filed 484,276 shares of common

Stuart

Haiti, Honduras and other countries in the Western
Hemisphere, and barite exploration in Columbia. Office
—Tulsa, Okla. Underwriters—Sanders & Co. and Rau¬
scher, Pierce & Co., Inc., both of Dallas, Tex.

being offered for subscription by common stockholders
of record June 12 on the basis of one new share for
each 10 shares held; rights to expire July 1.
Price—

offered for subscription by
stockholders; the remaining $500,000 principal amount,
plus any unsubscribed debentures, to be publicly of¬
fered. Rights will expire on July 15. Price—To stock¬
holders, 95% of principal amount; and to public, at
100%.
Proceeds—For working capital. Underwriters—
Smith, Clanton & Co., Greensboro, N. C.; Powell & Co.,
Fayetteville, N. C.: and Frank S. Smith & Co., Inc.,
Columbia, S. C. Offering—Expected this week.

Steadman Investment

30,886

Halsey,

Co., Inc., .both of Dallas, Tex.
f

Industries,

filed

Timken Roller Bearing Co.,

subordin¬
$1,500,000

principal amount are to be

Inc., Louisville, Ky.
of class A common stock
(par $1) and 1,000 shares of class B common stock (par
$10), of which 25,886 class A shares and all of the class
B shares are to be offered to public and 5,000 class A
shares to employees of company and its subsidiaries.
Price—To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriters—Kidder, Peabody &
Co., New York; and McCormick & Co., Chicago, 111.

& Co.,

of 6V2% sinking fund
ated debentures due June 15, 1972, of which

bonds due

Co.

it Thorn
June

Price—To stockholders

3 filed $2,000,000

June 10 filed

mortgage

stock (par $1),
of which 2,700,000 shares are to be offered to public at
$2 per share. The remaining 300,000 shares are under
option to original stockholders at $1 per share. Proceeds
—For expansion and working capital.
Underwriter—T.
J. Campbell Investment Co., Inc., Houston, Texas. -

by common stockholders

Southeastern Fund, Columbia,
June

of first

Texas Glass Manufacturing Corp.,

employees, $25.75 per share; to public, $26.75 per
share.
Proceeds—For working capital. Underwriters—
Crawford Co., Inc.,

$16,000,000

Price—Expected to be around $5 per share. Proceeds—
For
working capital and general corporate purposes.
Underwriters — Sanders & Co. and Rauscher, Pierce &

May 28 filed 3,000,000 shares of common

and

Western

(7/13)

Co.

bidders:

ley & Co. Inc. Bids—To be received up to 11 p.m.
on July 10 at office of West Penn Electric Co., 50

June

(jointly); The First Boston Corp.; East¬
Dillon, Union Securities & Co.; Kuhn, Loeb & Co.,
Blyth & Co., Inc., and Lehman Brothers (jointly); Harriman Ripley & Co. Inc. and Stone & Webster Securities Corp. (jointly). Bids—Expected to be received up to
noon
(EDT) on July 15 at Room 2033 Two Rector St.,
New York, N. Y. . ;
■ / ,
A,A
A
"

10,

Service

Street, New York, N. Y.

man

1957; rights to expire on July 10.
the unsubscribed stock, certain employees may sub¬

scribe

filed

Drexel

& Chemical Co.

for subscription

June

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Hemphill, Noyes & Co. and

Inc., New York

offered

record

Electric

1987. Proceeds—To repay advances from Texas
Utilities Co., the parent, and lor construction program.
Underwriter—For any bonds to be determined by com¬

Hartsville, S. C. (7/1)
filed 60,000 shares of common stock (par $5)

preferred

July 1,

Sonoco Products Co.,

cumulative

(7/10) '

Power Co.

$20,000,000 of first mortgage bonds, series

Dillon, Union Securities & Co.; Kidder, Peabody & Co.
and White, Weld & Co. (jointly); Lehman Brothers; The
First Boston Corp.; W. C. Langley & Co.; Harriman Rip¬

Underwriters—Kidder, Peabody & Co.; East-

Texas

June

latter

14 filed $1,000,000 of nine-month 8% fund notes.
(in denominations of $100 each). Proceeds
—For working capital and
other corporate pttfp6"ses.
Underwriter—Sire Plan Portfolios, Inc., New York.

Underwriters—Kidder, Peabody &

April, 1957, to carry out construction program.
Underwriter—To be determined by competitive bidding.

stock.

Price—At par

June

filed

Probable

man Dillon, Union Securities
& Co. and Merrill Lynch,
Pierce, Fenner & Beane; all of New York. Statement

May

•

100,000

West Penn

withdrawn.

(par 20 cents).

Plan,

filed

program.
-

120,000 shares of com¬
Price—$1.50 per share. Pro¬
ceeds—For mining expenses.
Office—612 Dooly Bldg.,
Salt Lake City, Utah. Underwriter—None.
stock

bank loans.

Co.; Blyth & Co., Inc.; White, Weld & Co. and Laurence
M. Marks & Co., all of New York.
.

Co.

Service

Electric

Texas

•

(letter of notification)

June

To repay

and

deposited for exchange (and may be declared
effective at option of St. Regis, if not less than 80%
of the stock is deposited).
"V"

mon

Price—To be supplied by amendment. Proceeds—

—To be supplied by amendment. Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purposes.
Underwriter—None.

stock

1987.

Antonio, Texas

(no par). Price—To be supplied by amendment.
Proceeds—About $10,000,000 to be used for construction

Regis

The offer will

(7/10)

$30,000,000 of first mortgage bonds due

filed

June

Q, due July 1, 1987. Proceeds—Together with proceeds
from sale of about $12,400,000 of common stock in March

1 filed

Regis stock for each share of Lumber company
be declared effective if 95% of the

St.

Portland, Ore., is President.

Washington Water Power Co.

of record March 15, 1957 on a basis of two new shares
for each share held; rights to expire on July 20.
Price

•

haper Co.
^'V-.; ■ A ■*,;
>.
850,000 shares of common stock (par $5)
be offered in exchange for common stock of St. Paul
Tacoma Lumber Co. on the basis of 56% shares of

St.

April

share). Proceeds—For exploration purposes.
Al¬

per

bert Griswold of

stock

(par $6.25)

exchange for the outstanding capital
stock of Western Life Insurance Co., Helena, Mont., at
rate of 1.39 shares of St. Paul stock for each share of
Western stock. The offer is condiitoned upon acceptance
be

Underwriter—To be named by amendment. Graham

June

Marine Insurance Co.

June 25 filed 417.000

of America, Portland, Ore.

May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders

1,250 shares of class

March 27 filed

ferred stock

to be

—

Wash., Underwriter—None.
St. Louis Insurance

Uranium Corp.

April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected

it Telestudios,

Proceeds—For expenses incident

$1 per share).

to development

This offer

subject to acceptance by not less than 80% of each
July 1. Dealer-Manager

—Zilka, Smither & Co., Inc., Portland, Ore.

Inc.
'June 14 (letter of notification) 180,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds
To purchase and install two Ampex videotape
-recorders, for equipment and working capital. Office—
>1481 Broadway, New York City.
Underwriter—Joseph
Mandell Co., New York.
J
A. ;.V

May 13 (letter of notification) 275,000 shares of common
stock to be offered to stockholders and the public. Price
—At par

Equitable Securities Corp., Nashville, Tenn.

(par

class of stock and will expire on

it Tax Exempt Bond Fund, Inc., Washington, D. C.
40,000 shares of common stock. Price—$25
per share.
Proceeds — For investment. Underwriter—

stock

Oregon-Washington preferred share.

for each

Proceeds—

Office—608 Fidelity Bldg.,
Underwriter—None.

June 20 filed

'A'

Parking, Inc.

Rota

share).

105,000

filed

$10) being offered in exchange for stock of OregonWashington Telephone Co. on the basis of 2% shares for
each Oregon-Washington common share and five shares

300,000 shares of com¬
per

Abilene, Kansas
shares of common

United Utilities, Inc.,

April

general working capital.

Spokane, Wash.

Proceeds—To discharge short-term obli¬
gations and for construction program. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey Stuart & Co. Inc.; Shields & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; White, Weld &
Co. (jointly); Salomon Bros. & Hutzler; Blyth & Co.,
Inc.;
Eastman Dillon, Union Securities & Co. and
Equitable Securities Corp. (jointly).
Bids—To be re¬
ceived up to 11 a.m. (EDT) on July 2.
,
1987.

due

Angeles, Calif.

share.

per

June

Underwriter—None.

Rochester

—

Proceeds—For wonting capital and gen¬
eral corporate purposes.
Office—Santa Monica, Calif.
Underwriter—Daniel Reeves & Co., Beverly Hills, Calif.
Offering—Expected in near future.

—$3

York, N. Y.

purchase of new materials and working capital.
Office
Phoenix, Ariz. Underwriter — Jonaihon & Co., Los

1957 on the basis of two new shares for
held; rights to expire on July 3. Price

record May 31,

New York is Presi¬
Fund Managemeni

Investment Advisor—Resource

dent.

(3007)

Chronicle

The Commercial and Financial

Products, Inc.

April 11 filed 500,000 shares of common stock (par $1).
Price — To be supplied by amendment. Proceeds — For

expansion program.

Freight, Incorporated, Akron, O.
June 21 it was announced company plans to offer public¬
ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
private sale of 425,000 shares of common stock at $4 per
share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid & Co., Inc.,
it All States

Cleveland, Ohio.

Corp. (7/15-19)
reported company now plans

Allied Paper
June 10 it was

to issue and

of subordinated convertible debentures.
Proceeds—To build new mill at Kalamazoo, Mich. Under-

sell

$3,500,000

Continued

page

The Commercial and Financial Chronicle

(3008)

Columbia

Continued jrom page
-writer

—

Forgan & Co., Chicago, 111., and New
Offering—Expected about the middle of

Glore.

York, N. Y.
July.

Specialty Co.

Aluminum

March 18 it

announced company plans to issue

was

and

convertible pre¬

cell 15,000 shares of $1.20 cumulative
ferred stock series A (par $20). Underwriters

Co. and The Marshall

Emch &
Co., both of Milwaukee, Wis.

Electric Co.
April 9, Bavard L. England, President, announced that
later this year the company will probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn. Loeb & Co., American Securities Corp.
and Wood,.Struthers & Co. (jointly); White, Weld & Co,
and Shields & Co. (jointly); The First Boston Corp. and
Drexel & Co. (jointly): Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
Atlantic City

of Pennsylvania (7/30)
April 25 it was announced company plans to issue and
eel! $50,000,000 of new debentures due 1997. Proceeds—
To redeem $50,000,000 of 5% series C bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders; Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; The First Boston Corp.; White, Weld & Co. and
Eastman Dillon, Union Securities & Co. (jointly). Bids—
Expected to be received up to 11 a.m. (EDT) on July 30.
Byers (A. M.)

Co.

authorize a
new class
of 100,000 shares of cumulative preference
stock (par $100) and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956.

Underwriter—Dillon, Read & Co.,

Inc., New York, handled previous preferred stock

financ¬

pected in August.

—

Corp.

was

—

Inc.
April 8 it was announced company plans to issue and
sell late this year $6,000,000 of first mortgage bonds.
Proceeds
Together with $4,500,000 of 4%% 12-year
convertible debentures placed privately, to be used to
repay bank loans and for construction program.
Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private
placement of an issue of $5,000,000 series G first mort¬

Duke Power Co.

—

April 22 it

(9/10)

reported company plans to issue and sell

was

$50,000,000 of first refunding mortgage bonds.

Proceeds

—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬

able bidders:

Halsey, Stuart & Co. Inc.; The First Bos¬
Morgan Stanley & Co.; Stone & Webster
Securities Corp. Bids—Tentatively scheduled to be re¬
ton

gage bonds.

Inc.

Corp.;

ceived

plans early registra¬

tion of $3,500,000 of 5%% collateral trust sinking fund
bonds due 1972 and 350.000 shares of common stock. Each

was

y.,

—

reported company plans- to Issue and

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner and Beane and White,
Weld & Co.
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp..
bidding.
Merrill

Gulf States Utilities Co.

April 8 it

some

finance

—To

reported company tentatively plans to
preferred stock this year. Proceeds
construction program.
Underwriter—To

was

issue and sell

determined

competitive

bidding.

Stone & Webster Securities

ders:

thers and Equitable

Probable bid¬
Corp.; Lehman Bro¬

Securities Corp. (jointly); Lee Hig¬

ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. LangHanna

Steel Co.,

Birmingham, Ala.

April 8 It was reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per
share.
Underwriters—Cruttenden, Podesta & Co., Chi¬
cago, 111.; and Odess, Martin & Herzberg, Inc., Birming¬
ham, Ala. Offering—Expected in June.
Houston
13

Lighting & Power Co.
reported company may offer late this

was

Fall approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc. has not yet been determined.
Underwriter—To be determined by

competitive bidding.
Halsey, Stuart & Co. Inc.; Equitable

Probable bidders:

Securities
Union

Lehman

Corp.;

Securities

Co.

Brothers,

and

Salomon

Eastman
Bros.

Dillon,

& Hutzler

(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
Idak* Power Co.

May 6 it was announced company plans to sell in 1957
$60,000,000 of mortgage bonds. Proceeds — For
construction program (estimated to cost about $89,000,000
this year). Underwriter—To be determined by competi¬
tive bidding. Probable bidders: The First Boston Corp.
and Halsey, Stuart & Co. Inc. (jointly); Coffin & Burr,,
Inc., and Spencer Trask & Co. (jointly). Bids — Now
expected to be received in latter part of June.
about

Louisiana Electric Co.,

For construction
& Co.

gram.

Detroit Edison Co.

Offering—Expected late in 1957.

—

sell $16,000,000 first mortgage bonds in November. Pro¬
ceeds—To repay bank loans and for construction pro¬

Feb.

reported company plans to issue and sell
$40,000,000 of first mortgage bonds this Fall. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co. (jointly); Morgan Stanley &
Co.; The First Boston Corp. and Harriman Ripley & Co.
Inc. (jointly).

Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).

company

Power Co.

Consumers

April 22 it

some

ley & Co. (jointly).

Co.

Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley
& Co. and the First Boston Corp. (jointly).

determined. by competitive bidding.

Industries,

Gas

$25,000,000 sold on June 11.
Underwriter — To be de¬
termined by competitive
bidding.
Probable bidders:

was reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank/
loans and for construction program. Underwriter—To be

reported

March

Consolidated Edison Co. of New York, Inc.
May 20, H. R. Searing, Chairman, said the company will
probably sell a new issue of first and refunding mortgage
bonds later on this year. [On Oct. 24, 1956, $40,000,000
of these bonds, series M, due 1986, were offered and
sold.] Proceeds—From this issue and from bank loans,
to pay part of the cost of the company's 1957 construc¬
tion program which is expected to total about $146,000,000.
Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.
Natural

Proceeds

Gulf States Utilities Co.

Fall, depending upon market conditions. Proceeds—For
program. Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.

Consolidated

announced company plans to issue,

yet been determined.

not

plans to sell not less

was-

additional first mortgage boads, the amount of which has
program.
Underwriters—Carl M. Loeb, Rhoades
and Merrill Lynch, Pierce, Fenner & Beane..
i

construction

April 9 it

was

•

of first mortgage bonds, possibly this

than $20,000,000

Central Illinois Public Service Co.

May 3 it

Co.

Feb. 18, it was reported company

writer—Probably Kidder, Peabody & Co., New York.

Connecticut Light & Power

Freres & Co. Underwriter—Morgan

Central Hudson Gas & Electric

Chesapeake

Gulf Interstate- Gas Co.

reported this company plans to raise

was

Probable bidders: Halsey, Stuart & Co.

trust certificates.

$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in units). Un¬
derwriter—Lehman Brothers, New York. Offering—Ex¬

April 22 it wa& announced company plans to issue and
sell this year about $7,500,000 of unsecured debentures.
Proceeds—To
finance construction
program.
Under¬

June

are

Inc.; Salomon Bros. & Hutzler.

Commerce Oil A Refining Co.
June

(7/17)

expected by the company to be received on
July 17 for the purchase from it of $4,965,000 equipment

about

Stanley & Co., New York.

Central

Bids

reported that company plans to issue and

of cumulative preferred stock.
Underwriter—DiHon, Read & Co. Inc., New York.

acquired by F. Eberstadt

and Lazard.

was

sell in the Fall $8,000,000

registration is expected

stock recently

some common

Great Northern Ry.

Columbus & Southern Ohio Electric Co.

May 9 it was announced company plans to issue and sell
$25,000,000 25-year debentures in October in addition to

Carter Products, Inc.
June 17 it was reported early
& Co.

it Goodman Manufacturing; Co., Chicago, III.
21 it was announced company plans to issue and
150,000 shares of capital stock (par $16.66%), fol¬
lowing approval on Aug. 5 of 3-for-l split up of present
$50 par stock. Proceeds—For general corporate purposes.
sell

&
Co.; Merrill Lynch,/Pierce, Fenner & Beane and
White, Weld & Co. (jointly). Bids—Expected to be re¬

Feb. 21 it

Underwriter—Kidder, Peabody & Co.,

June

ceived in September.

Tire & Rubber Co. financing.

working capital.
New York.

construction program, which
is expected to cost approximately $84,000,000.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley

ceeds—To help finance 1957

General

ing, while Kidder; Peabody & Co. underwrote

ably around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For

Inc.

System,

June 6, company announced that it plans the issuance
and sale of $25,000,000 debentures later in 1957.
Pro¬

Bell Telephone Co.

May 7 stockholders approved a proposal to

Gas

Thursday, June 27, 1957

Sept, 10.

May 10 it was reported company plans to issue and sell
around 200,000 to 225,000 shares of common stoek in the
Fall in addition to between $10,000,000 to $15,000,000

Nov. 1. Underwriter—To be
by competitive bidding, probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp. (jointly); Kidder, Peabody &
COi and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co. (jointly).

first mortgage bonds after

determined

Indiana & Michigan Electric Co.

(10/15)

reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
May 20 it
—For

was

reduction

bank

loans

and

for

construction

program.
Underwriter—To be determined by competiAtive bidding.
Probable bidders: Halsey, Stuart & Co.

Eastern Gas & Fuel Associates
was announced company may need additional1
capital of between $25,000,000 and $35,000,000 during the
next two years. Underwriter—For any bonds to be de¬

Inc.; Harriman Ripley & Co. Inc.; The First Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)

Co., New York.

termined

Chicago & North Western Ry. (6 27)
Bids will be received by the company up to noon (CDT)
on June 27 for the purchase from it of
$2,250,000 equip¬
ment trust certificates to mature annually from
July 15,
1958 to 1972, inclusive. Probable bidders:
Halsey, Stuart

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld

$10 of bonds will
of

•

common

Co.

stock.

Inc.;

carry a

warrant to purchase

Underwriter

Salomon

Bros.

—

Van

April 3 it

one

Alstyne, Noel &

•

bidders:

Halsey,

Stuart

Cleveland

Nov. 12 it

Electric

reported company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined
by com¬
petitive bidding.
Probable bidders;
Halsey, Stuart &
was

Co. Inc.; The First Boston

Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc.. and Baxter, Wil¬

liams

Co.

(jointly);

Glore,

Forgan

Co.;

Weld & Co.
Coastal Transmission Corp.
March 6 it was reported the company

White,
•

offer

000, for construction program. Underwriters—Lehman
Brothers and Allen & Co., both of New York.

(jointly).

$3,750,000
For

Co.,

25-year

advances

subsidiary.

First National

ent

collateral

and

surplus.

<.
,

Valley Gas &
Underwriter—To be deter¬

—

The

First

was

1957 if market

conditions make it

Brothers, Goldman, Sachs & Co. and The First
underwrote last equity financing.
,

—

program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
Brothers, and Bear, Stearns & Co. (jointly) Equitable
Securities Corp. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.; Dean Witter & Co.

Boston

Jefferson

Lake Sulphur Co.

Dec.

27, 1956, Eugene H. Walte, Jr., announced company
plans in the near future to sell an issue of convertible
debentures. Proceeds—For expansion program.

shares of 5% cumulative preferred stock
"
-^r "^struction
urogram. Under¬
writers—Paine, Webber, Jackson & Curtis, Boston, Mass.;
and Mitchum, Jones & Templeton, Los Angeles, Calif i-

•

nubber Co.

May 10 it was fepn^/i tha*
ic
issue of convertible subordinated debentures, prob¬

time in

April 2 it was announced company plans to issue and
sell $5,000,000 of first mortgage bonds later this year.
Proceeds
To repay bank loans and for construction

•

Iowa Southern Utilities Co.

announced application has been made to
P. U. Commission for authority to issue

...tooi

Light Co.

Boston Corp.. who

and sell 500,000

some

Lehman

General Telephone Co. of California
the California

feasible, and an issue of $8,000,000 in bonds in 1958. Tem¬
porary bank loans are available and probably will be
utilized, during at least part of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
to approximately $14,000,000. Proceeds—To repay bank
loans and for new construction. Underwriter—May be

Blackstone

Underwriter

Power

Prichard, Pres., announced that pres¬
plans contemplate an issue of $6,000,000 of preferred

stock

to issue
trust bonds.

City Bank of New York

Corp., New York.\

15.

Nov. 21, 1956, H. T.

(6/28)
June 25 this bank offered its stockholders the right to
subscribe for 2,000,000 additional shares of capital stock
(par $20) on the basis of one new share for each five
shares held as of June 24, 1957; rights to expire on
July 22, 1957. Warrants will be issued and mailed on
June 28.
Price—$60 per share. Proceeds—To increase
capital

Oct.

Indianapolis

announced company proposes

was

—

May 3 it

plans

bidders:

by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).

publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units. (Common stock not sold in units
would be purchased by Delhi-Taylor Oil Corp., or itt
stockholders at an average price of $10 per share.) Pro¬
ceeds—Together with funds from private sale of $40,000.-

Electric

•

Illuminating Co.

Probable

mined
-

Probable

sell

Proceeds

Chicago, Rock Island & Pacific RR.
are expected to be received by the company in Julv
for the purchase from it of about $3,000,000 equipment
certificates.

bidding.

Eastern Utilities Associates
and

Hutzler.

Co. Inc.; Salomon Bros. & Hutzler.

competitive

Co., and Kidder, Peabody & Co.

April 15 it

Bids

trust

Lincoln

National

*:Fort Wayne,

Bank & Trust Co. of

Ind.
June 19, the bank offered to its stockholders of record
June 18, 1957 the right to subscribe on or before July 9#

.Volume 185

1957

for

$25)

Number 5650

25,000 additional
the basis of

one

The Commercial and Financial Chronicle

capital stock

Northern

(par

share for each four shares

new

Proceeds—For

bidding. Probable
Halsey; Stuart & Co. Ine; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).

bidders:

\ r Louisville Gas &. Electric Co.

American Securities Corp. (jointly);
Kidder, Peabody &
Co. and Goldman, Sachs & Co.
(jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc.

be received

June

expected

was

Sept. 4.

New

York.

issue

1972.

was

•

National Bank

announced

■

,//•'//.

";//•■

Detroit

stockholders

' '

one new

share for each

July 10; rights to expire

seven

shares held

July 26. Price — To be
named later.- Proceeds:—To increase
capital and surplus.
Underwriters
Blyth & Co., Inc.; First of Michigan
Corp.; and Watling, Lerchen & Co.
/

;

Middle South

Proceeds—About $19,000,000, for investment in

stocks

stock;; offefing was to
stockholders,
underwriting, with oversubscription privileges.

•! /

without

;

New England

May 23 it

Electric

into

■

determined

Co.

was announced company plans to issue and
$6,000,000 of first mortgage bonds. Underwriter—
To be determined :by, competitive bidding;
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.

(jointly).

System

was announced

SEC has approved the merger
subsidiaries: Essex County Electric

Basin

Permian

May

Pipe Line Co.

announced

company,, a

Philadelphia Electric Co.

Feb.

ceeds from sale of 900,000 shares of common stock

was

announced

the

company

plans to issue

Proceeds—For expansion program. Under¬
writer—To be determined by competitive bidding. Prob- able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

$100) to parent, American Telephone & Telegraph Co.,
will be used to pay for expansion
program. Underwriter

(par

Co.; The First Boston Corp.; Morgan Stanley & Co. and
Drexel & Co. (jointly).
Public Service Co. of Indiana, Inc.
was announced that it is expected that a new
of first mortgage bonds
(about $25,000,000 to

To be determined-by competitive
bidding. Probable
bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.;

-NtwrJtrsty Power s Light Co.
Sept. 12, 1956, it was announced company plans to issue,
$5,000,000 of first mortgage bonds. Underwriter—
Tq be determined by competitive bidding.
Probable

bidders: Halsey,

Brothers and

company tentatively plans to
about $40,000,000 of bonds.
Un¬

determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Morgan Stanley &
Co.; Kuhn, Loeb & Co.

$30,000,000) will be issued and sold by the company
during the year 1957. Proceeds—To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new
construction. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman Dillon,
(jointly).

Bids
noon

cates

(9/18)

installments.

Probable

bidders:

Stuart & Co. Inc.; Salomon. Bros. & Hutzler.

basis;

•

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Ine.
(jointly); Salomon Bros. &.Hutzler; Eastman DiUon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Steams & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp*
(jointly); Kidder,_Peabody & Co. Bids — Tentatively
scheduled to be received

Utah Power &

Oct. 1.

Light'Co.

(10/1)
plans to offetf
stock. Under¬
bidding. Prob¬

also announced company

was

the public 400,000 shares of common
writer—To be determined by competitive

Merrill.Lynch,
Eastman Dillon,
(joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. lr
;
able bidders: Kidder, Peabody & Co. and

Pierce,

Fenner

Beane

(jointly);

Union Securities & Co. and Sifrith, Barney & Co.

Valley Gas Co.
April 15 it was announced company, a subsidiary oi
Valley Gas & Electric Co., plans to issue,
within one year, $4,000,000 of bonds, $1,100,000 of note?
and $900,000 of preferred stock to its parent' in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in torn,
.

the first three
paragraph.
~
,
April 15 it was also announced Bladkstone plans to offer
to its common stockholders (other than Eastern Utilities
proposes

new

to .dispose by negotiated' sale

securities

June

was

announced

company

plans to issue and

sell in September or October of this year a maximum of

Halsey,

200,000 additional shares of
►,

—William R. Staats &

common

latter

mentioned

in this

stock. Underwriter

Co., Los Angeles, Calif.

and to

parent)

common

stockholders o£

$2,500,000 of common stock of Valley
Gas Co., it is to receive as part payment of certain
Blackstone properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.
•

(12/3)
;
to sell $20,Probable bidders for
bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬
rities & Co.; Stone & Webster Securities Coro.; White,
Weld & Co.
Bids—Expected to be received on Dec. 3.
Virginia Electric & Power Co.

Mkrch 8 it

Wisconsin

May 29 it

was

announced company plans

was

000,000 of first

mortgage

Public

bonds.

Service

Co.

announced company plans to issue

and

first mortgage bonds and about
stock this Fall. Proceeds—For con¬
and to repay bank loans.
Under¬

sell about $7,000,000 of

struction

program

For bonds, to be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; The First Boston Corp.;

writers—(1)
tive

Merrill

Co., Inc., San Francisco, Calif.

4 Siegler Corp.

$8,580,000 additional equipment trust certifi-

two

1-for-10

program.

expected to be received by the company up to
(EDT) on July 31 and Sept. 18 for the purchase

Utah Power & Light Co. (10/1)
March 12 it was announced company plans to issue ancl
sell about $15,000,000 of first mortgage bonds due 1887.
Proceeds — To repay bank loans and for construction

$5,000,000 common

Diego Gas & Electric Co.
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth

are

from it of
....

(Calif.)
April 30 it was announced that proceeds of at least $1,200,000 are to be received by the company prior to July
1, 1957 from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,

(7/31)

Corp., Ltd.

San

Dillon, Union Securities & Co. (jointly).

-^ Norfolk & Western Ry.

the

San Francisco and New York.

Probable bidders:
and Eastman

June

working capital.

its

Purex

reported

and sell this fall

derwriter—To

Postponement of financing
Underwriter—Stone & Webster

of California
/
/
'
May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new

Associates

Union Securities & Co.

Niagara Mohawk Power Corp.
issue

June

July 16.

Transocean Corp.

the

Eastman

was

about

Securities Corp., New York.

series

and sell

April 22 it

announced

Feb. 11 it

Morgan Stanley & Co.; Shields & Co.; White, Weld &
Co.; The First Boston Corp. Bids—Tentatively expected
to be received on Sept. 11.

Stuarf & Co.; Kuhn, Loeb & Co., Leh¬
Salomon Bros. & Hutzler
(jointly);
Dillon, Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities
Corp.; The First
Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane.

record

Blackstone

gage bonds.

—

and sell in the second half of 1957 additional first mort¬

Jersey Bell-Telephone Co.

subsidiary

of
Northern Natural Gas Co., may issue about $25,300,000
of new securities, in the following form: $15,000,000 of
mortgage bonds, $3,700,000 of preferred stock and $6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction. Underwriter
Glore, Forgan &
Co., New York.
'
was

Co.; Stone & Webster Securities Corp.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Beane. Bids—Had been expected to
be received up to 11 a.m. (EDT) on July 17.r
r

March 12 it

company.

(9/11)
■,
May 1 it was announced company plans to issue and sell
$30,000,000 of debentures. Proceeds—Together with pro-

man

(8/20)

new

Sept. 12 it

1957.

■

Offer¬

announced company

Electric

•

Tampa Electric Co.
May 8 it was announced company plans to issue and sell
Pro- / 217,286 additional shares of common stock, first to stock¬

fell

& Company; Salomon Bros. &
Hutzler; Eastman
Dillon, Union Securities & Co., and Wood, Struthers &
Co. (jointly) \ Lehman Brothers; The First Boston
Corp.;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane; Kidder,
Peabody & Co., and White, Weld
& Co.
(jointly). Offering—Expected in first half of

Telephone & Telegraph Co.
was

Pennsylvania

.Loeb

New

Price—At par ($100 per share).

$90,000,000 of

new

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be received on Aug. 20. Registration
—Expected in the latter part of July.

This would be followed by a $20,000,000 first mortgage bond issue by the resultant com¬
pany, to be known as Marrimack-Essex Electric. Co.
Underwriter—May be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
one

one

ders:

of the five following
Co.; Lowell Electric Light Corp.; Lawrence Electric Co.;
Haverhill Electric Co. and
Amesbury Electric Light Co.,

Pacific

der, Peabody & Co.;, Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &

basis of

Oct.

stock and/or pre¬

plans to issue and
23-year debentures due 1980.
Proceeds—To repay advances from parent and for im¬
provements and additions to property. Underwriter—To

Underwriter—To be-determined by competitive
bidding.
bidders:, Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬

Securities Corp.

the

received

holders

sell

Probable

& Webster

common

repay advances from parent.
Underwriter—
American Telephone & Telegraph
Co. owns

May 24 it

was

Beane and Stone

stock

Tampa Electric Co.
May 8 it was announced company plans to issue and
sell $18,000,000 of first mortgage bonds.
Postponement
of financing was announced on June 6. Proceeds — To
repay bank loans and for new construction. Underwriter
—To be determined by competitive bidding. " Probable
bidders: Halsey, Stuart & Co. Inc.; Goldman, Sachs &

rights to expire

•

reported company may issue and sell in
the fall about $20,000,000 of debt securities. Proceeds—
For construction program and to
reduce bank loans.

■

Montana Power Co.

May 20 it

be
•

Underwriter—To

program.

89.6% of the voting stock of Pacific T. & T. Co.
ing—Expected some tirpe in August.
>
;
,

•

Southwestern Bell Telephone Co. (10/1)
May 24 directors approved the issuance of $100,000,000
new
debentures.
Proceeds
For expansion program.
Underwriter—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to

ceeus—'Jo

common

V
/-v;:
May 16 it was reported company plans to issue and sell
about $10,000,000 of debentures this summer. Proceeds—
For construction program.
Underwriter—May be Blair
& Co. Incorporated, New York.
;
<
I

None.

the

System operating companies during the
three-year period 1957, 1958 and 1959.: Underwriter—

;

common

ferred stock held.

Utilities, Inc.

announced company may consider an offering of new common "stock within the next year or so.
of

construction

share for each six shares of

was

w.-v

—

determined

tional shares of

■

May 8 it

;

Inc.; Salomon Bros. & Hutzler.

Southern Union Gas Co.

Pacific Telephone & Telegraph Co.
May 24 it was announced company plans to offer to its
stockholders the right to subscribe for 1,822,523 addi¬

—

Stuart & Co.

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The
First Boston Corp.
Bids—Expected to be received on
July 23.

the basis of

(11/19)

(7/23)
was announced company intends to offer and
$60,000,000 of first and refunding mortgage bonds.

Proceeds—For

(7/10)

Southern Pacific Co.

(7/25)
Bids are expected to be received by the company on July
25 for the purchase from it of approximately $9,000,089
of equipment trust certificates. Probable bidders: Halaeyr
i

May 23 it
'.sell

July 9 will
approving a proposed offering to stockholders of
156,607 additional shares of capital stock (par $10) on

vote

pected to be received until next Fall.

Pacific Gas & Electric Co.

Underwriter—Lee Higginsoii Corp.,

;

^4 Manufacturers
June

early registration statement is
of $3,000,000 of convertible de¬

reported

bentures due

determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers (jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not exf

was

& Co. and Salomon Bros. & Hutzler
(jointly).
(2) For preferred stock—Eastman Dillon, Union Securi¬
ties & Co. and Salomon Bros. & Hutzler
(jointly); Harri¬
man Ripley & Co. Inc. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to 11 a.m. (EST) on Nov. 19.

Mangel Stores Corp.

Underwriter—To

curities

(jointly); The First Boston Corp.; Eastman Dillon, Union
Securities & Co. and White, Weld & Co. (jointly). Bids
—Tentatively scheduled

program.

was reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter-To bo

reported that this company now plans to "
issue and sell $28,000,000 of first
mortgage bonds and
70,000 shares of $100 par value preferred stock. Pro¬
ceeds—To repay bank loans.
Underwriter—To be de¬
termined by competitive bidding. * Probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Blyth & Co.,
Inc.; Eastman Dillon, Union Se¬

May 14 it was reported company plans to issue and sell
$15,000,000 of fifst mortgage bonds. Proceeds—To repay

Ohio Power Co.

May 15 it

(9/4)

bank loans and for construction program. Underwriter—
.To be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and

construction

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and
White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co.
(joint¬
ly); The First Boston Corp. and Blyth & Co.,. Inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.;.
Harriman Ripley & Co. Inc. Bids—Expected to be re-.
ceived up to 11 a.m. (EDT) on Aug. 13.
; ■ >
V: \

this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due
Jan. :i„ 1958 and for construction program. Underwriter

competitive

South Carolina Electric & Gas Co.
Jan. 14 it

be determined by competitive

Long Island Lighting Co.
April 16 it was announced company plans to sell later

be determined- by

(MMw.)^(8/13)

4 it was reported company plans to issue and
sell approximately $15,000,000 of first mortgage bonds.

—To

States Power C|o,

March

•

held; rights will expire on July 9./Price—$67 per share.
Underwriter—Blyth
Co.,;Inc., Indianapolis, lnd.
'

(3009)

Lynch, Pierce, Fenner & Beane; Salomon Bros.
Dillon, Union Securities & Co.

Hutzler and Eastman

(jointly); Dean Witter & Co.; Lehman Brothers; Whit^
Weld & Co.
(2) For any common stock (probably fiist
to stockholders); The First Boston Corp., Merrill Lynaoh.
Pierce,

Fenner &-Beane, Robert W. Baird &

William Blair &

Co;■■(jointly).

Co. ana
'

The Commercial and Financial Chronicle

(3010)

body

Continued

from

page

Co.,

$400,000

subordinated

51/2%

convertible

notes

In the latter part of

States.

will

General

and 18,000 shares of common stock.

The Security I like Best

The

transistors.-

notes

large electronic
General Electric,

such

manufacturers

the

into

share.

per

conversion will create

dilution

from

tion

11%

common

convertible

are

Full
11%

about

present

outstand¬

the
ing shares.
change in favor of
The outlook for General Tran¬
the large manufacturer.
By that sistor
is
very
promising.
The
become

sistors

standardized,

situation may

diodes

volume

has

Thursday, June 27, 1957

been replaced by ownership
management,
wnich
is- aiso a'
modern
management,
enormous
gains have resulted.: As many of
has

1957,

manufacture
additional types of

begin

and

ex-

panded, the company has been able' you probably know, I think that,
to reduce prices which has furthe combination of expert ownther
stimulated
the
use
of its ership and management is work-,
The

transistors.

ing to reouild the New York Cen-.
tral right now.
• .^Vvr.Y'.-

expanded use of
hearing-

transistors in computers,

Raytheon,
aids, radios, military and com- -; Aircrafts have been in a little
of America, time General Transistor is ex¬ United States Air Force recently mercial electronics presents the bear market of their own all year.'
which rank pected to be in an even more approved General's transistor for opportunity of combining a small it shows no signs of turning right I
before
General
Transistor
ap¬ prominent competitive position in its
military applications. The com¬ company with a good manage- now. At the same time, I will
proximately in that order.
Of this field.
and
efficient
organization join the ranks of those who feelpany will set up an organization rnent
about 40 companies, General
Although the computer market this year of 300 electronic dis¬ into what appears to be a very this is temporary in this instance.
Transistor is the seventh largest is
important, the company is very tributors throughout the United unique growth situation.
I tninktnat the moderate price
Texas

Instruments,

Radio

Corporation

Philco and Sylvania,

manufacturer in the business w'th

approximately

the

much interested in four other rap¬

expanding major markets,
namely, portable and home radios,
larger competitors, General Trans¬ military products, hearing-aids
transistors

makes

istor

its

and

components exclusively.

estimated

$3,250,000.

volume

1957

are

Continued

from

page

what they

might be. A few years
at the bottom of
the
list; now they are about a
dozen steps up the ladder but still
have room to climb, in my opin¬

In addition to this the com¬

the

intense

competition that
profit margins in
radio transistors, this market will

results in lower

last

not

particularly important to

questions

solicitation

proxy

nicated

10,

stood

ion.

the

military market is estimated to be
just about two years away. Because erning

they

ago

in¬

electronic

Only small quantities
being supplied for these four
the present time but a large

the quarter
ended March 31, the company had
sales of $510,000 compared to only
$154,000 in the same quarter of
1956.

miscellaneous

and

facturing

struments.

Sales have increased from $113,000 in 1955 to $1,132,000 in 1956
and

earnings ratios of aircraft manu¬
stocks are still benind

total idly

Unlike

market.

transistor

the

mission's reply in

after

months

July
the Com¬

full, which
of

interval

and

commu¬

Commission

1956, together with

forth

gov¬

came
seven

prodding

some

tion

lieu

words

the

■-

amusement

industry
.

because if you follow it closely
enough you will realize that mdividual success counts for a lot.
To some extent, if you are in the
railroad business you deal with

the shareholder and not on the management
whose statement, additionally,
discriminatorily

the

proposal? In any
event, why put the word limitation

-4'".-

number

each

—

fol¬

goes out un-rebutted?
many factors outside of your conlows:
is considering the
Spurious SEC Argument
trol, in the way of regulation, etc.
the first four months of the cur¬
manufacture of crystal diodes, a "Q. Is 100 words sufficient for a
rent year the company booked $1
The last statement in the ComZ'
fair presentation of a stock¬
product used in large volume by
million in new orders. This sales
mission's reply is truly astoundi
holder proposal?
Does man¬
of them or
vou
computer manufacturers. Crystal
and new order record has been
agement have an advantage in
diodes, which act as rectifiers in
outstanding.
it
II IS
Saying
inat Since
\
pamincrc
its ability to answer the con¬ 3g6IlCy.
be
reflected
in
electronic circuits, are similar in
your
earnings
In 1955, the company's first year
tention in the same commu¬ management already has the
construction
to
transistors
and
right away.
4
V
advantage by reason of being in
of operation, it lost approximately
nication?"
may
be
manufactured
on
the
The same
thing is true, to acontrol of the proxy machinery
$6,000.
Last year the company transistor
production lines with "A. In determining the length of and
having access to the corporate lesser extent m the automobile
made $184,000 or 61
cents per
the statement which a stock¬
only small equipment modifica¬
funds, why worry about further business, as witness the success
share on the present number of
tions.
holder
They are, however, easier
may
insert in man¬ discrimination?
As
well
might of Chrysler and the Forward Look
302,966 common shares outstand¬ and less
agement's proxy statement in
expensive to produce as
one
contend
that
because
the this year.
ing. In the first quarter of 1957,
support of his proposal the
exemplified by an average selling
the company made $50,225, or 18
negro is already beset by the poll *
Oil stocks are high up on the
Commission had to consider
price
of
$0.60
compared
with
tax and other troubles, why worry list
cents per share, compared to $41,of popularity and certainly,
the practicalities of the prob¬
about $2.00 for a computer tran¬
about segregation?
seem to rate it.
Where else can
161, or 14 cents per share, earned
lem.
There is no limit to the
sistor. Since, on the average, lour
in the same period of 1956. Profit
The Commission is affirmatively y°u tind the tax advantages and
diodes are used for each transistor
number of stockholders who

had an order backlog of
$300,000 at the end of 1956 and in
pany

the company.

The company

seriS

a«ncCy°mitSisfrsamying ZS

£til

vrmr

margins

have

reduced

increased

been

the

considerably

past year due to

costs

training

in computer
ket

for

put proposals
in
management's statement

addition, this product would com¬
sonnel and exnenses incurred in
plement the company's sales in
expanding facilities to meet the
the computer field. Industry sales
needs of increased growth.
It is
of diodes have grown from $9.3
anticipated ; that profit margins
million in 1954 to almost $32 mil¬
will stabilize at about 10% after
lion in 1956 and are projected at
taxes in 1957. Although earnings *
in 1957 are expected to be better $42 million for 1957."

nor

construction, the mar¬
is very large.
In

the

production

transistors.

with

The

other

the

by Gen¬

eral Transistor because these units
must
be manufactured
to very

Semimetals,

the

words is

statement

cation

exert

that

tion

the

proposal to stockholders.

Ob¬

reasons

jection to this limit has been
voiced
on
occasion
but, in
general, it has been accepted
have

worked

and

seems

very

well in practice.

"There is

transistor

question that

management does have
advantage in being able

some

length.
However, it has as much or
more advantage by reason of
being in control of the proxy
machinery and having access
to the corporate funds with
which to combat the proposal."

the company, was incorporated in

greater

additional

tolerances

and

sold at
higher prices than transistors pro¬

istor costs

computer

high

less

than

are

Other

$1.25.

transistors

sold

are

$7 but they are only made
in small quantities and for
special
as

pres-

space

called

Commission

the

consideration

his

that

the

contentions
of

and

Senator Lehman

cis

uses.

transistors

are

pro¬

duced at very close tolerances and
the company has obtained com¬

petitive

advantages

special

manufacturing techniques.

It has

reduced its reject ratio from 90%
when it first was in business to
a

that the

subsidiary was in opera¬
tion, it had sales of $106,899 and
a

Computer

current rate of about 35%.

feels

company

below the

•

that

industry

this

The

rate

average.

net

types of transistors and re¬
lated
products. It perfects and
manufactures
products invented
by others and for which there is
an

established market.

holds

pany
see

duction

ment

impossible

this time to make sufficient utili¬
zation of automatic equipment for
their

manufacture.

Therefore,

small company like General Tran¬
sistor is able to compete with the

there

neers

cost

the

transistor

very

tive

the

relative

computer is

small, there is little incen¬
for

the

computer

manufac¬

turers

devices.

to produce these
volume expands and

tran¬

The

com¬

patents but is licen¬

patents

and

basic

has

of
A.

Western

Although

research, the
engi¬

staff of ten

engaged in product develop¬
and
individual
customer

service. The management is young,

able, with considerable
perience in electronics and

very

ticularly transistors.
Capitalization of the

large corporations. Also, since the consists
the total cost

under

company

which

may

and

money

ex¬

par¬

company

mon

stay that

always

for pro-

way

•

determine

will
you

much

how

can

Forming Leavitt & Co.

the Commission's reevasive, procrastinating,
altogether uncooperative.
*
also,

are

NewF YOTk^Sfcick'
-nt-.i^

form

Lea^itt

Wall

Berk Admits

Bernard

Berk

Bernard

of tbe New Yo*k Stock
on

72 Wall
members

Co.,

City,'

New York

street,

City.

York

Street, New

-wivi

ict.

with offices at

& Co

Exchange,

july lst wm admit Lewis Jay

Horowitz

Continued

from

page

partnership,

Pilgram Sees, in Boston
BOSTON,

Stock Market Reflections
Steel stocks

$70,000

purchase

mortgage, $400,000 in 5V2%

and

302,966 shares of

stock.

are

still

selling at extremely low price
earnings ratios. I can only think

In the first quarter of

begin with, many rails have enor¬
double leverage. Some of it

that this is due to the persistence
of the idea that they are prince

mous

and pauper shares.

—some

lack of

romance

There is also

far

the in¬

vestment public

is concerned even
though
the
growth
factor
has
been good.
Here is a case where
a
profit might be made out of a
gradually increasing
investment
rating as well as gradually in¬
creasing earnings.
.*
Another
low

group

the

which

railroads.

rated

course,

railroads appear to be the reverse

com¬

1957, General Transistor placed
privately through Kidder, Pea-

less, huge profits have been made
in rails from other factors.
To

of growth stocks with automobiles
and

airplanes

business

all

cutting

the

time.

into

their

Neverthe¬

comes

from their

capital structure

comes

from the

ture of their business.

na¬

Therefore,

buying the right rails at the right
time is
like
buying on margin
without having to

sonal

—

Pilgrim

Lazar

Street.

Federal

associated

Se¬

an of¬
Lestet

with

the

office.

new

Wellington Co. Admits
Wellington

Co.,. 120

Broad¬

New York City, rpember6 of
the New York Stock Exchange on

way,

July

1st

Merrill

will admit Robert G.
Joseph D. Bennett to

and

make any per¬ partnership.

loans.

The

industry has been

railroad

characterized
that

Mass.

Inc. have opened

curities,
fice
G.

what's pertinent.

convertible subordinated notes due
1969

are

overvalued

make. The marr
ket price as it is affected by the
trend in being is the only factor
that counts in either shrinking or
swelling your pocketbook.

new

In addition, since transistor de¬
signs have not been standardized,
thereby necessitating short pro¬
runs,

proposals

stockholder

Stocks

undervalued

ever

short

profit of $21,200.

The company conducts no pure
research for the development of

Electric

;

Here

single

than

the Com-

the desiiability of ic(juiiin^

plies

then

what

the

trying to accomplish something outside of an intra-corporate fight area, it is not interested.

of time.

money

big contests it loads the dice; and
tnat regarding tne
small stockholder

Nothing

In my mind, the only valuation
that really counts is the bid, the
offer, and the actual sale. That's

assisting
to obtain
and
fair

case

last

tracted periods,

proxy

proposals, it is justifying the

criticism

for

often

but

perseveres

regulations
provisions
the public stockholder
adequate
presentation
and

its

from

excluding

number

valuations.

mal

Indifference

insert,
why not impose swh limita-

crystal form.
For the period of
approximately 11 months in 1956

In closing, let me leave one

Loading the Dice, Plus

Last Bit of Advice

though. Don't pay too much atr
tention to what I might call nornormal

111

4"1-

One

management

institutional investors such as inFebruary, 1956 for (1) the devel¬
vestment companies to report how
opment, manufacture and sale of
equipment used in the manufac¬
they vote their proxies; and that
duced for other markets. For in¬
If
the
Commission
turing of single-crystal germanium
sincerely stock held in pension funds should
stance, a computer transistor now and silicon and (2) the manufac¬ fears the danger of bulk through be voted in accordance with the
costs about $2 while a radio trans¬ ture and sale of silicon in
single- the absence of limitation on the wishes of the' beneficial owners.
close

ration?

" the

this exists in

says,

wherein
vast

100

exposi¬

prepared

the

find the excitement of explo-

you

both

in support of its position.

sures

it seemed

Commission

And

rebuttal.

Commission

100

the

denied

equal space for telling his story;
and equal opportunity for verifi

framework

carefully

whollyconsolidated subsidiary of

owned

Inc.,

exercise

heavy cash flow? Where else can

wherein

situation

the

shareholder

the

words would be sufficient for

computer

the

proposal itself,
the

selves.

the

supporting

can

"Since

Transistor.
in

proposals which

than

addition

the

Concentration

upon

discretion.

basis, it could possibly be a very component business could possibly
important customer of General be as large as transistors them¬

market has been stressed

limit

any

single stockholder may insert,

«■

there

number

The company, through the re¬
than $1
per
share, in the last
quarter of the year, they may run cently acquired Magna-Head Com¬
at the, rate of 35 cents per quarter. pany, is entering the production
are
General Transistor produces of magnetic devides which
five basic types of transistors, the relatively new in their application
in
electronic
computers.
These
majority of which are sold to
electronic computer manufactur¬ units are used principally in the
ers. It makes and sells transistors
memory section of the machines.
to almost every major computer " The
company
is also exploring
manufacturer.
carefully
other
computer
When one major very
builder changes over to a transis¬ components used in conjunction
torized comnuter

the

may

diodes

per¬

has

grown

management
in the indus¬

Most of the time it has been
management without ownership.
Normally, it has been what might
be called
an
operating manage¬
ment.
In many cases it has been
what I would call an old-fash¬

try.

ioned

management.

Where

this

Sutro Adds to Staff
(Special to The Financial

Chronicle)

FRANCISCO, Calif.—Carl
L. Dierkes has been added to the
SAN

staff

Sutro

Co.,

460

Mont¬

of the
New York and Pacific Coast Stock
Exchanges. He was formerly with
gomery

Street,

Irhwahanhpr

Jir

members

Volume

Number 5650

185

Continued

The Commercial and Financial Chronicle

(3011)

this type of work. No investment
can
be made and then forgotten

page

Long-Term Investment Results
Require Continuous Supervision

Report of Symposium in Dallas,

Each investment must be watched

from

sociation, 616 Washington Loan
& Trust Building, Washington
4, D. C.—$7.50.
"

and

checked.

makes
use

For

this

for

sense

the

reason,

trustees

much research

cost will

allow.

Any

fund

may

How

be jeopardizing then

which

does

noi

is electroni-/ ment. .we could look at it this way:
for the missile industry will be mak¬

the office

will

release

efficiencies in the

tional

ing

•

conven¬

A change

morfe

production

•

which

gram

which

flanges

Anc

defense pro¬

our

inevitable,

seem

going to affect the aircraft manu¬
tion of the factory. :
facturing industry perhaps more!
]
(8) v A 3 change in distribution seriously than any other, as the
•which is adapting itself at a furi¬ demand for missiles replaces the
ous

to automatic merchandis¬

pace

ing.

super markets^new techniques
packaging, self-service, TV ad-;
vertising, better materials han¬
dling, etc., etc..-• • * "
'
r
(9) A new change in agricul¬
ture, as new fertilizers, insectircides, machines and chemical tech¬
niques cut man-hour -costs and
in

■

raise the output per acre.

for

demand

missile

manned

■

that

aircraft.

tube

for

successful

Pref. Stock Offered
First

Boston

and

metallurgists who' of 300,000 shares of Kaiser Alu¬
desigiv the tube are more likely minum & Chemical Corp. 4%%
to be working for the steel com-- cumulative convertible preference
pany than for the aircraft manu¬ stock, par value $100, at a price
But

the

control

missile

the

cases,

as well as our new road sys¬
tem and the opening up of the St;
Lawrence waterway. %•J

craft

(12) A change in communica¬
tion,, as the transitor comes into

electronic

(13)

change

will be

education

;

less costly when closed circuit TV
of age.

comes

(14)

A* change ,in the art .of
warfare which is being
changed

engineering

group s;
aircraft companies are

and

acquire..

difficult

•

What I

am trying to say, in es¬
is that the people who are
engaged in the defense industries

sence,

faced with

are

period of transi¬

tion-which is probably going to be
a

physics and guided missiles.

serious transition for

very

them.;

The

them

for

effective

plan¬

ning.
(16), A change in management
techniques which is slowly, evolv¬
ing into a science,., assuring that
all of the other 15
changes will be
.

put to

use hy business to. improve
productivity and production. \

Now
:i

what

does

this

mean

terms of investment supervision?
Let's fake one of these
changes
and

attempt to
in

mean

what it could

see

terms of the investment

of pension funds.

low''investments
how well each

these

changes take place, it
that every company

mean

|n that industry is going to profit.
Each

must

company

What

the

ments

supervisor

must

above

the

look

fact

for,

that

studied.

cussed

vestment

(1)

Competent management.

(3) A good pattern of growth in
.'

its

own

(4)* Good

industry.
of distribu¬

Systems

tion, etc.
.

have

It is these specific factors
bined with general factors of

and

choose

industry

the

lems

successful

h i

econ¬

investment

Missile

Industry

Example
One

the

one

the

major changes

was

which pointed out the

ma¬

jor change which
in

the

definite shift in
away
ons

This

is taking place

of warfare.

art

our

There

the

that

means

will

and

that

weap¬

the. missile.

manned

aircraft

relatively
our

maments

less important
major system of ar¬

will

retaliatory
missile

area

defense policy

from the conventional

into

power

armed

based

with

the
guided

upon

the
the

atomic

warhead.
•

terms

have

supervised

•

invest¬

manu¬

prob¬
and

years

prefer¬

taken

at $100.

redeemable

option of the corporation in whole
or
in part at any time at prices
ranging from $104.75 per share if
redeemed

$100

per

after

each

before June 1, 1962, to
share if redeemed on or

June

1972,

together

with accrued dividends.

case

Proceeds

from

sale

the

preference

new

stock, together
with other funds, will be used to
provide a portion of the funds
for-completion of expansion pro¬
underway. In addition, the
company is negotiating the direct
placement of a new series of $50,grams

000.000

first

Kaiser
is*

mortgage bonds.

Aluminum

major

aluminum
minum

producer

Chemical

primary

fabricated

and

our

alu¬

products. In

key to successful investment
The theory of buying an

selling

proved

industry has

Effective

except,

perhaps, for thejhort-term
lator.

specu¬

Therefore^ in the air-frame

industry where fhe long-term out¬
look

does

the

not look

promising

mentioned

;Je|ore

that

a vast for¬
And
it,
is

res€&rth./

management^)# an

portfolio

the

March

is also

three

months

ended

31,

that

re¬

changes

reqiiire study if they

economy

capitalized upon. And
time, brains and

means

all

money

study

hooves

expended

investments.

the

fund

trustees

utilize

upon

banks

have

So,

any

the

and

large

departments organized to

—

American

Metal

was

sales

total net sales amounted to

712,000

and

net

income

'$330,-

$41,-

211,000.

Annals of the United

Leiner is engaging

—U. S. Savings

business

from

offices

securities
1128

Street, Chicago
$5.00.

Street.

1, 111. (cloth)
Books

the

for

Col¬

and

Reader

Mutual

fiscal
Pres¬
entation —■ International Coop¬
eration Administration, Wash¬
ington, D. C.—paper.

•

(chiefly in fine bindings)
—Catalogue—L. Weitz, Inc., 439
Madison

Avenue, New York 22,

Y.—paper.

Business Letters, Fourth Edition—
Walter

Present

New York 16,

East 33rd Street,
N. Y.—cloth—$8.

—

third edition

Book
42nd

crofilm

—

McGraw-Hill

St., New York 36, N. Y. $6.

Citadel, Market and Altar: Emerg¬

1502- Montgomery

Elridge 27,

On
39

July 1 McManus & Walker,
York

City,

of the New York

Stock

New

'Broadway,

members

Exchange, will admit Daisy Strasser

to limited

partnership.

D. F. Rice Branch
iel F. Rice & Company

branch

19th

office

Avenue

ment of

under

has opened

937
the

Northeast
manage¬

Dale W. Teegarden.

Southwest Resources

Hand Book

—Southwest Research

institute,
Road, San Antonio,

Texas.
State

$250.00.
for

Bonuses

World

War

and Korean War Veterans—Tax

Foundation, Inc., 30 Rockefel¬
ler Plaza, New York 20, N. Y.
—paper.

Law

Between

Conflict

ministrative

Practice

Ad¬

and
in

Theory of the Consumption Func¬

tion, A

Valua¬

tion of Property for

John

Bureau

Research,

Business

United

Lex¬

ance

University of Kentucky,
ington, Ky. (paper).
Eighth

Report

Annual

tional

—

tin

Utility

for

the

(paper)

year

New

York

Service

Case

Study

Indonesia— Na-^

Planning
Association,
1606 New Hampshire Avenue;
N. W., Washington 9, D. C.—
paper.

Industry

1956—Edison
Electric Institute, 420 Lexington

Avenue,

Perform-?

Business

Abroad:

tional

Wash¬

in the
United States: Statistical Bulle¬

Electric

States

STANVAC

on
Ex¬
Interna¬

Fund,

Monetary

—

University Press#
Princeton, N. J.—cloth—$4.75.

Shannon-

Kentucky—F.

Milton Friedman

—

Princeton

Taxation in

17,

N. Y.

$1.25.
Security—U.

De¬

Employment
Youth, 30 cents;
and
Employment
for
Special
Workers
and

for

Venezuela: Business and Finances
—

„

Rodolfo

Luzardo

—

Prentice-

Hall, Inc., 70 Fifth Avenue, New
York

11, N, Y.—cloth—$4.95.

Woman

Worker:

Job

Finding
Techniques
for
the
College
Woman, 10 cents; Outlook for
Women as Occupational Thera¬
pists, 20 cents; Employment Op¬
portunities for Women in Pro¬
-

Counseling

fessional Engineering,

Service

Employment
Women

Labor Market
Practices, $1.25—U. S. Depart¬
ment of Labor, 341 Ninth Ave¬

gists

Workers, 25 cents;. Out¬

for

—

Supplement to

July issue of Fortune Magazine

duct

Forum

Containers

industry

—

1956

—

Analysis

Glass Container

Avenue,

New

York

16,

Practical

Materials

for

Earning Opportunities

Your

bor,
York
World

341

High-Temperature
Standard

Parts—

Ninth

Avenue,

New

1, N. Y.
Balance

East 33rd
N.

Community, 15

Department of La¬

Sheet—Robert R.

Doane—Harper

Y.—paper.

Strength

cents—U. S.

Manufacturers Institute, Inc., 99

High

Women

Nurses, 40 cents; How to Con¬

—Fortune, 9 Rockefeller Plaza,
New York 20, N. Y.

Techni¬

Directory of 500 Largest

Corporations

Park

Technolo¬

Laboratory

cians, 25 cents; Older Women as

look

Glass

20 eents;
Opportunities for

Medical

and

Office

New York 1, N. Y.

nue,

Fortune

FT. LAUDERDALE, Fla.—Dan¬

Cost

tus—Michael Grant—Barnes

University Press Cata¬

1957—list of new
publications scheduled—Colum¬
bia University Press, 2960
Broadway, New York 27, N. Y.
(paper).

New

Noble, Inc., 105 Fifth Avenue,
New York 3, N. Y. $5.50.

Md.—cloth—

logue—Fall,

•

of mi¬

use

8500 Culebra

Columbia

Six Main Aes Coinages of Augus¬

Society — Spencef Heath,
with a foreword by John Cham¬
berlain — Science
of
Society
ing

Road,
$6.

—

Clerical

daily business pro¬
cedures—Diebold, Inc., Flofilm
Division, Norwalk, Conn.—Sin¬
gle copy on request; additional
copies at $1 each.,
■
7

Saun¬

Gwinn

Company, Inc., 330 West

Foundation,

Microfilming

Techniques

Francis William Weeks

—

36th

East

Procedural

Chester Reed

—

Alta

Anderson,

Banking 1957

Bankers

Association,
Street, New York
16, N. Y. (cloth).
v
12

Control—Manual

Business Reports
ders

Summary

Day

American

Louis Wil¬
liam
McKelvey, and Richard
Conrad
Gerfen — H.arper
&
Kay Smart,

Brothers,

Program

Security

1958—A

year

lector

Adjustment

McManus & Walker Admit

York,

entation—Booz, Allen & Hamil¬
ton, 380 Madison Avenue, New
York, N. Y. (paper).

Groups, 40 cents; Older Worker

Fifty-Second

W. W. Norton

and Survival—Condensed Pres¬

& Loan League,

N. La Salle

221

Counseling

—.Morris

research

do just

Sav¬

States

partment of Labor publications:

Opens

—

Company, Inc.}| New
N. Y. (cloth) $3.50.

ings and Loan League for 1956

Employment

M. Leiner

Barbara Ward
&

ington, D. C.—paper.

$8,267,000,
of $87,393,000 and net income of $11,386,000 for the same period of
1956. For the calendar year, 1956,

be¬

invest¬

Interplay of East and West: Points
of Conflict and Cooperation —
j,

income

net

Labor, 80 Centre Street,
N. Y. 25 cents per
$3.00 per year.

New York 13,

Broadway, New York 4, N. Y.
—paper—$3.
: \;. '
\-y# Management of New Products:
: Key Factor in Company Growth

and

pen¬

research

Bu¬

Statistics,

company

major

reau

1956

the

brains available to them.

firms

for

change Restrictions

compared with net

dispute
Depart¬

issue

annual

Book—36th

tistics Year

1957, net sales of the
amounted to $97,527,000

investment

'business

researchjft'he

quires

The

variety of

The company

BROOKLYN,

these-expenditures that
the changes I '&ave outlined are
taking place. BMjtjie same token,

sion

and

Sta¬

Metal

labor

irt

ment of

copy,

1957 —

May

cases—New York State

(cloth) $3.75.

speeding

for.

this

aluminum

through

are

products.

mi-

CirWfOi

our

aluminum, and the

aluminum alloys into a

made^f-the individual
befqp* any action is

taken.

the

alumina to

moment^-.; careful study

companies

too

the

fabrication

For

years

policy.
never

25%

refractory ma¬
terials, dolomite and magnesia.

tha|;Vsfelectivity is the

duced

arbitrators

dom House, Inc., 457 Madison
Avenue, New York 22, N. Y.

Bureau

Bulletin,

Albacora—Eugenie Marron—Ran-

the

producer of basic

Selectivity

fourdjf in

experience

ment

Stresses

tune

Cites

uously.

industry

of tomorrow.

heavy

air-frame

considerable

the

will

in¬

example,

contains

some

over

should
com¬

into

any investment in the industry is
going to have to be studied assid¬

omy

For

will

stock

1956, it pro¬
primary alu¬
minum output of the United States.
facturing companies certain ad¬
Its aluminum operations include
justments might be made. But this
mining
and
processing
of
is not a blanket condemnation of the
an
industry. All it means is that bauxite, the production of alu¬
mina from bauxite, the reduction
this particular industry is going
portfolio

your

industry

(2) Sound financial backing and

terms

terms.

commitment

industry

structure.

see

is doing.

be 'translated

can

and

is in a good competitive position,
is whether the individual
company
within that industry has:

defense

closely to

company

invest¬

over

the

Obviously, what I have just dis¬

to
*

doesn't

industries to watch

stock

The

process

each share of convertible
ence

some

managements

change in planning by some of these companies will be
government, business and banking able to make the
necessary ad¬
Which, through use of the new. justments
successfully. Others will
electronic statistical machines, can
not be able to do so. It, is there¬
now obtain adequate statistics
and fore necessary for those who fol¬
.

conversion price per share of com¬
mon stock
will be $47.50 through

which the

fundamentally by the jet,- nuclear
(15)

many

be- designed by the air¬
manufacturing
companies; May 31, 1967 and $55 thereafter,
other cases they will be subject to adjustment in certain
designed by a number of small events; ' for conversion purposes
but

:;V finding it

effective and

will, in

Association of America,
Sixteenth
Street, N. W.,

American

The

Containing
articles
on
"The
Older Worker," "Collective Bar¬
gaining Trends," "Labor irt ReView," "Injury Frequency
Rates," and selected decisions of

Washington, D. C.—paper.

Corp.

Corporation, 22 West Put¬
Avenue, Greenwich, Conn.

Industrial

—Quarterly Review—Air Trans¬
port

—

7 Awakening
Giant—•
Woytinsky — Harpef &
Brothers, 49 East 33rd Street,
New
York
16, N. Y.
(Cloth)
$3.75.

—

University of Michigan Division
Gerontology — University of
Michigan,
U-M
Division
of
Gerontology,
Rackham Build,ing, Ann Arbor, Mich.—$2.25.

1107

The

World

Modern.

Airline Traffic and Financial Data

Chemical Convertible

perhaps

the

bine,

the most important aspect of its Dean Witter & Co. are managers
development, because of the heat, of, the group that is offering pub¬
problems that have to be over¬ licly today (June 27) a new issue
come.^

Aging

in*

Kaiser Aluminum &

essentially a tube. The
metallurgy that goes into the de¬

(11) A change in transportation
involving the jet and the gas tur¬

application.

nam

vesting.

signing- of

makes

(10) A change in metallurgy, as
hew techniques of resource dis¬ facturer. The materials that are of $100 per share.
The
new
preference stock is
covery, mining and refining are inside the tube, the explosive ma->
applied to the old as well as the terials, are in the province of the convertible into common stock at
the option of the holder at any
hew metals .which are. emerging chemical
companies.
The
elec¬
time prior to redemption.
tronic
The
from our laboratories.
guidance
systems
which

which

ing
India:

are

achieve the electronic automa¬

money

tunities.

of energy.

sources

(7)

use

programs

Barton

workers

productive employment.

..more

Comparison of over 100
—
William L.
Management Publish¬

—

actual

As
I
have
pointed
out,
the
changes which are taking place ii
in the future. our economy will indicate
changes
;
(6) A change in power produc¬ Within this industry there will be in investment. This is the con¬
tion due not only to the develop¬ certain companies which will pre¬
tinuous job of fund supervisors
ment of atomic power, but to new sent attractive investment oppor¬
and this is the investment activity

fied,

They Handle Their Person¬

nel

long-term investment results.

which,

Standards As¬

Texas—National

Brother,

Street, New York 16,

Y.—cloth—$10.

(3012)

The Commercial and Financial Chronicle

A. B. S. Share S

;

American

Business

Diversified Services, Inc., founded in 1894, now has assets under v ;
$2 billion and service^inore than 780,000 *. */v!
customer accounts.

Shares,

May 31, 1957

Inc.

share in the net asset value of

outstanding capital stock after
adjustment for the 9 cent capital
gain distribution paid Dec. 28,
1956.

Net assets

$27,408,593,
equivalent to $3.77 a share on May
31, 1957. Cash, bonds and pre¬
were

ferred and guaranteed stocks
counted

for

49.03%

stocks for 50.97%

and

ac¬

common

of the portfolio

that date.

Issues added during the period
Louisiana

were

Power

debentures

Co.

4%%

Light

1987

and

Sears, Roebuck Acceptance Corp.
debentures
4%%
1972; El Paso
Natural Gas Co. 5.68% preferred
Stock and General Telephone Co.
of California 5% preferred stock.
Eliminations
Consolidated

Michigan

w e r e

Gas

Co.

first

mort¬

gage 3/1975, Public Utility District
No. 2 Grant County, Washington
bonds

revenue

2005;

Central

Hudson Gas & Electric Corp. com¬
mon stock.
■
!

Merrill Lynch Adds

{

(Special to The Financial Chronicle)

...

FRESNO,
Eliason

.staff

Calif.

Merrill

Fenner &

Lynch,

M.
the

Pierce,

Beane, 1125 Van Ness

-1

.Avenue.

Variable Payment Fund, Inc., whose first public
offering of shares will be made this week, presents an answer to

to changes in the

power

become

new company is a
primarily in common stocks with emphasis on growth,
provide for automatic reinvestment of dividends, and for a variable
pay-out of capital and income to the shareholder by periodic
redemption of shares for an elected number of years.

incomes

invest

accumulating

estate.

—

fixed

dollar

amount

investment

retirement fund

—

and

the

investor's

would

The pay-out from these two investment media

income from Investors, Variable Payment Fund
rise with them,' possibly well before a
comparable

rise

the cost of living occurred.
Conversely, should common
prices decline, the pay-out would be less, but living costs
would probably fall, too, since common stocks
historically have
tended to keep pace with cost of
living trends. The part of the investment
represented by the Investors Syndi¬

FUND

stock

cate

America
under

reverse

certificate,

similar

economic

the

other

conditions.

hand,, would
-

act

in
Although the fixed >'

dollar income from this

when

cost

decline.

costs

source would have less
purchasing power
living rises, it would buy more when living
Consequently, the combination has advantages of

balance possessed by neither one alone.
•
Investors Variable Payment
Fund, Inc. will operate by invest¬
ment advisory agreement under the
professional management of

WRITE FOR

FREE INFORMATION
FOLDER AND PROSPECTUS TO

Investors Diversified

YOUR INVESTMENT DEALER OR

end

nninS

Services, Inc., which has had 63

Established 1930

years

by IDS, and will be
its large and competent staff

each

fiscal

henceforth

nnni

f.m

om.y coulcl move ahead as

did

crease

$29.8

last

with

year

in private debt reduced to
billion compared to $44.0

billion the year before.

Thus, the economy does not appear dependent on excessive debt
„

creation

make

'further

stantial advances.
While

the

sub-

dollar

total

debt

indeed
imposing, Calvin
Bullock said, there is little con-

evidence

indicate

unsupportable level. However,
are signs that it has attained

there
a

plans for capital expansion,

with' thisj 'tho

economy

demonstrated

the' ability in
expand by the
real Savings and without

months

this

from

excessive

true,

credit

future

through

problem.
At some Point, if economic sanrty persists, the publication said,

tive,

their

net

asset

value

plus

sales

charge.

Asset

value

varies

daily with fluctuations in the market value of the securities
owned by the company.. Sales
charges are graduated to provide
reductions as the investment is
built, and a shareholder's invest¬

ATOMIC

^DEVELOPMENT
MUTUAL

ment in other mutual funds
managed by IDS may be included to
obtain the reduced sales
charge. Transfer of shares to one or more
of these funds may be made without
sales

FUND, INC.
'

charge.

GET THE FACTS AND FREE PROSPECTUS

Shares of the fund will be distributed
exclusively by Investors
Services, Inc., through its nationwide sales organization

Diversified

Atomic

Development Securities Co., Inc.

1033 THIRTIETH STREET, N. W., WASHINGTON 7, 0. C.

Dept. C

Tel. FEderal 3-1000

composed of more than 2,700 licensed representatives. These shares
are
designed to be offered as part of the balanced investment
program, but may be purchased separately.
Joseph
and

Massachusetts

President

Fitzsimmons, IDS President, is Board Chairman
of

Investors

Variable

Payment Fund, Inc.
office is in the Investors
Building, Minneapolis, Minn.
The

Massachusetts
is

paying

The

parent

company,

Investors

14 cents

per

investment

June
of

24,

trust

the

income,
to

EATON & HOWARD

payable

EATON & HOWARD
STOCK FUND

Managed by

EATON

June 20, 1957.

.—

•

r£cm/tatty, Trustee
v

HOWARD

•

■

•

An±,

date

same

Net assets on-May
*

2ftfl ^ ...

were

equal

„i

-o

? !
^
capital -gain distribuhon
cents. -per share^ou
December iDSR^w equuL to-$ 2.03 ; ;
,

'r^bmparcct^itlv^$10.44

X£fr

\iirW
'

eG:

fTUcC

F* f

fFrv?/f
seeuritiesr «otal$^945,974,^while. ^yesJS?
n

Iq^^e^'the

fund

ma^jnitiaLXn v es Co.; ! n t s Jn
tme
American-Marietta
Mead
Johnson- & Company and.NowMining .Corp., the .report i)r»
»

Among the clmngcs in tlu fui d s
P°rtfoho

unngihe quarter,>vere.

Purchasers

V™

Gulf Oil Corp.—

upon

9,000

The ability of banks to lend
determined, of course, by the
availability of reserves.
Their
willingness is determined by their
is

assessment of their

own

financial

.Sueh judgment

20,000

Nationai Lead Co

10,000

soundness.

based

only

10,000
6,100

Sales
Shares

Dixie

13,000
15,000

Cup Co.——

Filtrol Corn

T^T|7 lYfYvvPSl

\
T

.
Rnnrlc
JllllO OUIltlo

and their

empirical measurements

2,000

Corp

Johnson & Co

Newmont Mining Corp
because of its
Reynolds Metals Co
the ability and

ers.

customers'

Machines

business firms to extent credit to
its less
financially sound custom¬

likely to

be:

not

-ly

"change

Fund,

Investment

Diversified
Inc

baianCed mutual fund

vesRng
ferred

common

and

stocks

stocks,

bonds,

in-

pre-

reports

$»8

the level
the

"reett

the
During

BOSTON

•'.

BOSTON

;

xsTABLKBtB i»u

Fraepactuie* from

your

„

•.

are

several

apparent

dangers from excessive

"Perspective" noted.

First

debt,
is the

Russ Building

SAN FRANCISCO

investment Denier

the mboaa.

■

fifle at Nov; 3«'shares
/956'
the same period

outstanding rose from 7,039,294 to
7,521,356

and

17 784

ig,543.

shareholders

from

Asset value per

possible assumption by debtors of
financial obligations greater than

share declined from $8.9o to $8.91.

little

the

past

evidence

Q-

$n Q1

future

from

meet

can

re-

Two income dividends of 10 cents

there

has

per

that

share paid by the fund since

such, a

Nov. 30, 1956 totaled $1,481,838—
likely to be accumulated,
assuming a continuation of about more thuin twice the amount
the existing levels -of business.- tributed;10 yearsn ago for the enload

willingness
of
banks
to. lend.
Tightening of bank credit is followed by reluctance of stronger

Debt becomes

when

Incorporated 1818
:

dependence

been

INCORPORATED

14 Federal Street

tftttu wttce

4ne

International Business

principally

sources.

business

on
-1

they

BALANCED FUND

holders

certificates of record
close

economic

debt tends to become self-restric-

There

net

1957

serious

partly

oh?fttnhL,7™.I™
® /}'E!
„h„rf>
9,417,832, owned by 27,38a shareholders^

past.

share from

become

ftf rat

Fund

Life

dividend

iSfaSi

quarterly

fund is the fifth mutual fund affiliate in the
Investors
which includes also two wholly-owned IDS subsidiaries

DIVIDEND

Net assets -

any

new

Group,
issuing face-amount certificates.

Life Fund

Home

for. therend.of

should

public

ATOMIC SCIENCE

were

outstanding,

owned by 39,768 shareholders.: All/
fh
fj*
' , rpt>ro<w,nt record

expansion
keep ahead
of debt
expansion, and debt need
not

There

*1,781,229 ;s h a r e s

economic

Investors Variable Payment
Fund, Inc., incorporated by IDS
in March 1957 under the laws of the State of
Nevada, is registered
under the Federal Investment Act of 1940 as a mutual
diversified
investment fund of the open-end type. Shares are offered to the

invest in

Massachusetts Investors Growth

Stock Fund rcPorted for the threes
months ended May 31' 1957 net

the

expand credit.

use

rates

con-

sumers' purchase of durables and
banks' willingness and
ability to

recent

current

$136 Million

level where it tends to restrict

Along

it is at, or even near, a dangerous
or

direct

that

but are required to be automatically com¬
pounded so that the fund is, in effect, continuously accumulative.
Reinvestment of dividends will be made without sales
charge.
year,

'■

seems

elusive

been

Fund Assets

rapidly
the in-

creation, the publication said.

shares of the fund will be declared at the close

relative

in line with real
savings.
In this
connection
it
seems
significant that the econ-

experi-'

experienced investment specialists
Dividends

hfnjwnrfh

closely

stimulus

Broadway, New York 5, N. Y.'

£«

must

capital

that

.business

assets of $135,870,720.

ovnnndnn

has

continual supervision of

analysis

ir? debt^ to finale

crease

under the

RESEARCH CORPORATION

thewar

Ant

in investment management and administration. The new
fund
will have the benefit of the extensive facilities for
financial and
economic research and analysis maintained
ence

NATIONAL SECURITIES ft

120

the

has

evidence

Mass. Growth

help resolve financial problems arising from changes
in the economy.
For instance, when common stock prices rise,

INVESTMENT

little

itself

sive

•

sub-

debt

income.

1945, $170 billion
$191 billion in 1929.

...

recessions,
although the psychological weight
of debt may have depressive influences on business and personal
spending decisions.
As a corollary, debt seldom appears exces-

and

initiator

with

extremely low level it reached at

is intended to

A MUTUAL

end

1940
TJ„-

disposed of each period,
until^ill his shares arc redeemed.
Investors Syndicate of
Amerieat, Inc. face-amount certificates
carry their own cash pay-out options which may be extended over
years.

the

Other options give the shareholder the
right to specify the
number of dollars to be received or the number of shares to be

period of

funds

excess

expansion

rhutual

There

billion, compared to $406 billion

determines the number of shares to be redeemed at each
■

use

liquidation

busi-

generally required,

$400,000,000.
net pub¬
lic and private debt totaled $684

stantial

At the end of last year,

Variable

redemption interval.

con-

savings in financing
expansion and less de-

assets in

Investors

Payment Fund shares—a fluctuating dollar investment.
keeping with its purpose, the new fund offers broad pay-out
options. Option 1 provides for spreading the pay-out of the share¬
holder's^^ investment oyer anelected niunber of years in amounts
which will tend to vary in response to fluctuations in the value
of the dollar. This option makes use of a variable
payment factor

recent

change towards the

managers

on credit created by the
banking system, according to the
June issue of "Perspective," publieation of Calvin Bullock, Ltd.,

Thereafter, and before
recovery takes place,

debt

seems

pendence

purchase of two securities: Investors Syndicate of America

certificates

there

real

business

Briefly, this program operates as follows:
One payment
monthly, quarterly or annually on a systematic investment basis
for the

to occur.

were

structive

form of balanced
a

nes

sharp downturn of

evidence

some

are offered by its sponsor and national
distributor, Investors Diversified Services, Inc., in conjunction
with the face-amount instalment certificates issued by Investors

or an

However,

The shares of this fund

a new

income, there is the
ever-present danger that it would

of the dollar.
mutual investment fund which will

Syndicate of America, Inc., thus creating
investment program suitable for

pri-

not unduly excessive

seems

relative

The

Group Analyzes

While debt, either total

vate,

the widely recognized need for a professionally managed invest¬
ment medium designed to provide flexible future income
related

which

David

—

added

been

has

Investors

purchasing

■*'

Public, Private Debt Problem

I. D. S. Starts Variable Payment Fund

its

Bullock

By ROBERT R. RICH

increase of 3 cents

Thursday, June 27, 1957

management in. excess of

4.--

Value Rises
reports for the six months ended

business

dan gerou* burden

activity; and4n-

-comes-^declmetwHttixvAggEavatmg

tire year
a

1^7^ On :Dee; - 31^ :1956,

security profrts distribution to--

ii m

Volume 185

Number 5650

wm m'li iwi'

The Commercial and Financial Chronicle

...

(3013)
shareholders

record

Nov.-

30,

At both the beginning

and the
months, about 70%

end of the six

of the
in

fund's

storks

eommon

^ived

assets

the

iJ„pe

ineome

DurinL

was

this Deriod

$3 700 000

vantage

t-emninder

the
than

dent of the fund.

Preferred stock

reduced rand

were

now

represent 12 1% of assets, as compaied with 15.0% on Nov. 30 and
18.2%
a
year
ago.
The fund's

"gatasT

torts
and
ana

119%
11.9/0

New

stock

on
on

radical

A
**

departure

purchases

from

A group headed by Lehman
traditionally conservative method Brothers and Straus, Blosser
of telllng a "Wal1 Street" story McG°well on June 25 offered to
Was revealed tod*y with the re" th^ Public $20,000,000 of Kerrleas,e.„ot' "Th? Hope Th.at Jack McGee Oil Industries, Inc. 51/4% "
minute film, spon- chase
warrants
attached)
and
by the National Association 220,000 shares of the
company's
Investment Companies, tells the common stock
The warrants en-

stor

Jack

andywhat

Penn

and

they did with

Saver

little bit

0f money

their

the

included

Gas

Co.

common

were

carries

set

characters

stvlized

were:

Aluminum

to^bond holdings
Co.

Canada,

Robert

Ltd., sinking fund debentures, 4^s,
1980; Commercial Credit Co., subordinated notes 4V2s, -1977; Idaho
Power Co;, first mortgage 4^s
tVas,
1987; Louisiana Power & Light
Power
Co., first mortgage 4%s, 1987; New
England Tel & Tel Co.* deben-

recently been increased. This of- miles

orippd

IlUnohf

the

]

Central

this

central tnis

•

close
close

scrutiny
scrutiny

t<
to

Jr* dividend p°lk;y at
August
capital expehdi- hjeeting. At the same time, Presi-

by
Productions,

Lawrence

those

.«-«

the'la^delhnf?n tte'earn-

of bank loans dent Wayne Johnson placed

i_P

the

°1corporate purposes, road s net income at the equivap y plans to apply part lent of $2.30 per share for the first

x..

4 the

]Qa^men^
»

$15,418,329 bank for^the corresponding considerable
1956 period,
This represents
a

Sin!

techniques. Because of the 4,
nkin£ fund provisions require woisemng of the trend in the secthe co
film's high entertainment value,
Vop«C°*mPiany (a2 on
ae
1862- ond quarter even though first
35 mm prints will be made avail- 1066» i
a9f.6' inclusive to provide for the quarter results were disappointing
tion

U¥OU,

able to motion picture theaters for
inclusion
in
their regular pro—

It will also be entered in

grams.

all

motion

picture

competitions

tures

J'f^rem.en^ °^,a ^nimum of $800,- enough, having fallen short
.

by just

principal amount of deben- over $500,000 of the road
1

...

s estifor the period

.„.

„

*ure.s> which annual amount may inate of $4 /2 milhon
se<!
a hiakimUm of which itself was some 13/2 % below
$1»600>000 at the option of the the $5.2 million_earned m the first

4%s, -1986; Pacific Gas & which make awards to sponsored
Elec. Co., first 4V2s 1986; Sinclair films./:
company and (b)" on June 1,1967- quarter of 1956
However, the
Oil Corp., convertible 4%s, 1986.
Black and white 16 mm prints 197®
p^9Ylde.foy
retirement
dl|clof^d
?
Substantial additions were made will
later
be
offered
free
of °f
000 principal amount an- per share for the first half of the
to previous holdings of American charge to all television stations *iually which, optionally, may be
year represents a
& Tel. Co., debentures 3%s,
1990; N. Y. & Harlem RR. Co., "B"
4s, 2043; and Tennessee Gas TransTel.

and color prints will be made
^r^ed
a maximum of $2,- drop
the corresponding 1956
available at cost to investment 400,000 annually. For the; sinking pgjjie.
7^
brokers and dealers and NAIC fund
debentures will be rewas some raising of the
mission Co., debentures 4:Ms 1974. .member companies for screening deemable at 100%. The debentures
(m
part of the more
The only elimination from the cefore church, social, business and also are redeemable at the elecp
^ ^
bond holdings was Atlantic Coast club groups.
Information about tlon #of the company at pnees was increased_to $4the..final■
Line RR. Co., unified 4V2s, 1964. renting or purchasing prints may ranging from 1051/2% and at de- Haai*e™*
Among preferred stocks, Ala- be obtained from The National creasing prices thereafter.
den<ce <>fhigner :osts Md a taper-

from

®y^kJ'pws

the

.n'fJl

?a^^J

ima
bama Great Southern Ry. Co., 6%

thus

holdings

Public

tional Nickel
called

was

of Canada, 7%,
payment.""
> -

Co.

for

J-

;

605

1956.

Offer Two Oond Issues
)■

x*."'-. JirittiX

■

•»,

•

«...

„

■

compared with $57,734,931 in
eight months ended Feb. 29,

the

Federal Land Banks
The 12 Federal Land Banks af-

tive.

Net

periods

Personal Progress

was,

the

respec-

$4,490,943

dividends

after preferred
$1.93 and $1,34i a

the

fered publicly yesterday (June 26) snare on tne common shares outcommon shares outon

$123,000,000 of 4%% bonds due landing at the end of the periods.
The appoinment of Frederick E.
July 15, 1958 and $60,000,000 of £pr the fiscal year ended June
Blum to the research staff of Bar- 4%%
bonds due July 15, 1969. ^•1»5„6 operating revenues totaled
ringer & Nelson, investment man- The 4%s of 1958 are being offered ¥89,762^959 compared with $45,agers of Delaware Fund and at 99%%, and the 4%s of 1969 at 200,499
in the preceding fiscal
Delaware Income Fund, was an- 100%.
These
new
consolidated year, and net income in the re•p

.»•

nounced.

bonds will be dated July

^48'shaile:soul'stendin.gat the 1956

Howpvlr paiSSr
ltLy^a!l' STn t Jower, havwfhof
turned out to be
Jhe
.

vear

T«e
■

^
amounted J
to $7.66
uuwiiWciru

irena

^ ^iyTonfirmed
fsile/t0 fuifiIi

the

road

the S4'/, mil-

estimate for the first oinrter

t|lis

which

sente(j suci,

pPective years was $4,679,994 and 'similar

missile

dealer and

gasoline and allied products under

gages.
The local associations are
owned entirely by farmers. The
Pennsylvania Wharton School. He associations in turn own all of
also taught "Money & Banking" the stock of Federal Land Banks,
at that institution while complet- Farmers have about $102,000,000
ing the studies he undertook upon invested in the banks. The banks

and mining, milling and concentratmg of uranium bearing ores.

itself

renre-

iaroe dron from the

xvas

and

specialize prima-

atomic

energy

pro-

ance

nationwide

fi„®r

1956

"'n

the

present

evenly

coal

traffic
has

year

divided be¬
miscellaneous

and

Xiao

to make

a slightly more favorable
showing comparison with the 1956
m„x MJC
weeks, the decline for the five
weeks ended June 1 having been
6.7% as against 7.1% for the Class
j average whereas the decline for'
„

the

7.5%

weeks

ended

June

was

compared with 6.1%

Class I.

for
»

•

improvement

will

be too

however to help results for
the first half as the previously
menti0ned official estimate indi-

lat

cates>
ip^g freight rate increase
has not stemmed the downtrencfeof
revenues,
revenues

and five months' grpse
a decline of 0.8%

showed

from the figure for the like 1950

period.whereas the correspondihg
COmparison-.f or-the

first

months
for

was a standoff. Net
the first five months

amounted to $1.98

incofne
of: this

per

vsharo

Qgainst $2 96 for the first four
months

of last

yeL

The PreM-

dent's estimate of $2.20

plrshfo

for the first half of the current
wbuid

place June, earoiiiga
at only, 34, cents.per
share, or siyear

most ide^tical with theWpriJ dnd
May results/ Hence the concern
^

djvj[dend rate.

share.
flbun*

when

even

per
was

J™

downw

i_.it*

15, 1957.
The
offering
is being made
rily in aircraft manufacturing and through the banks' fiscal agent,
related -fields,
and will closely John T. Knox, 130 William Street,
follow
developments in
guided New York City, with the assistMr. Blum will

253.33

by carloadings. The only bright
UCC11
tllc
spot has been the gain in K1-aiH
14
grain
movement which was quite general during the first quarter, but
this has shown some signs of tapering off in the case of the Illin0is Central. Nevertheless, tote^

P|'

and

$2,912,389,. equal
share

Pxxvc^ol

income

against

manufactured goods which, to¬
gether, make up the bulk of Illi¬
nois Central's traffic as measured

Service

Elec. & Gas Co., $1.40 cumulative
div. preference common. Interna¬

about

tween

Association of Investment CompaT o t a 1 consolidated operating "Jg o" 01 trattic. Admrttedly the
participating, was eliminated from nies, 61 Broadway, New York 6, revenues during the eight months Pievious $3 50 rate looked like a
the portfolio. Partially eliminated New York,
ended Feb. 28, 1957 were $71,143,- proportionately 1 ow. "pay-out"
were

far

been

1956

T rayof hope of avoidance miles in the previous year.
early action at least and may
The decline in the road's
of some source of cheer to

each

securities will
lUe secuniies will be added to the tors will give
De added to the tors will give

number of unusual anima-

stock

chn™

industry. The picture features ar.
original musical score and employs

for

is pricea at year,rand which led to the recent
statement, of the road's President
proceeds from the sale of that, in view of this trend, direc

$70 7^

the

races

Co., Inc., the film's credits list some of
Boeing Airplane Co., Deere:& Co., the most widely acclaimed creaNational Gypsum Co.. and North tive talent in the
animated film

Inc._;_

stock

are priced by
and accrued interest and fngs

common

hishlv

Cse

to the

Alabama Great Southern Ry;

American Aviation,
New additions

Duahaa™S

1964. The debentures

d*™l°Vsgay com" at 100%
a
in a
way the

^ ^

plete story line and

American

Eliminated

holders

sharesofc^mmon

the 0.78% drop in ton-mileage for

be thrust upon a board the year.as the result of the loss
!r d*recd;ors 1S "{? hack-track on a of some longer haul traffic. The
dlvld^drate that has onjy quite average haul declined to 245.43

that was left over from $1,000 debenture at $80 a share i
n a«o,tinrt
A.r"7 ;
Miar„e be
family budget.
Departing from April 1
1958 to Juno 30

Broadcasting-Paramount Theatres, stock market and into
the story
Inp.. Arkansas TiOiiisiana
Inc., Arkansas Louisiana Gas Co.. nf {n.rrxcfmrf
Gas Co., of investing.
Hammond Organ Co. and Socony
Produced for the Association
Mobil

■

Illinois Central R. R.
One of the most distasteful jobs

This

By GERALD D. McKEEVER

raotlon P1C" «

sored

Railroad Securities

the

onVNof 30 from the familiar educational pat-

13 3%

Mav di, 1956
May 31

section

Kerr-McGee Oil, Inc.
Securities Offered

Fund Film

"to^ take adattractive" yields fu"rfin

bonds

the

available on high-grade
bonds,
accordmg to Hugh W. Long, Presi-

holdings

NAIC Offers

invested

however

Durchased'

fund

'I"i''Trii"""r*fMi

In the midst of all this9 Illinois
Central stock has declined sohie
20% from this year's high of 63%,
a

proportionate

greatly Jin
rails

drop

of anything

excess

among the

of the investment class into which
the Illinois Central has worked

$2A84,867
T
Kerr-McGee Oil Industries, Inc.

Ld/n

js an integrated, independent pe-

the freight rate increases of last

the result of the
magnificent job it achieved in
reducing and consolidating ite

December 28

affecting

bonded debt.

Q£

freight

.......

troleum

company

marketing

dccl/e

fo. lhe

unfamiliar"

one

was

that,

the

even

some

no"

with

80%

itself mostly as

At the current level

*n
^ow ^0 s» Illinois Ceritrail
grams. He brings to his new post banker group.
The proceeds will the Deep Rock and Kermac brands gain< estimated at about
$10.3'mil- stock has easily discounted a cut^
an extensive background in these
be used to redeem $135 million of apd 011> greases and allied spe- jjon
annuaiiy by the road was in- i)ack in
dividend to the prevhfields which he gained during his, 3%%
bonds maturing July
15, cialties under the Wanda brand, sufficient to offset rising expenses,
$3 50 rate,, if not lower, even
10, years as a Navy aviator and 1957, to repay borrowing from Kerr-McGee, in addition, is one of
especially in view of the decline ** immediate action in this direct
instructor
in
this
country and commercial baiiks, and for lending the major contract dplling com- in traffic. The 5% increase for tion might conceivably be avoided,,
abroad.
operations.
panics, specializing in off-shore
operating in southern ter- depending on how much and hov^
A native of New York City, Mr.
The Federal Land Banks make drilling, largely in the Gulf of ritory and which applied to the soon further freight rate
increase^

ter's degree in Business Administration from
the
University of

resigning his rank of Lieutenant have
in

1955.

accumulated

and

reserves

surplus of $266,000,000.

MPir

NEW

Garrett-Bromfield & Co.
Colo.

—

George

name

pttv

Harris has become associated with

CI1Y, IN.
Set vices

Y.—'ine

SeciLir^s

Halsey, Stuart Group
Sells Erie Equipments

firm

17th

Fiber

&
Co.,
650
Street, members of the Mid-

Stuart

maintains

Co.

and

Inc.

eqUipment trust certificates,

The

branch

the

a...

Building, Tucson, Ariz.

ma-

turing annually, July 15, 1958 to

^ange(Lu0

,Pn

Washington Planning Corp.

Garrett-Bromfield

'
were
to

The

certificates

'
u
a Kna
priced to yield from 4.50%
.

4.75%

•

according to maturity,

The certificates will be secured

West Stock
was
own

Exchange. Mr. Harris
formerly President of his

investment firm in Denver.

With Irving

Jensen & Stromer Adds
MARYSVILLE,

Calif.—Joaquin

_has.

field

niLix,
PARK, wuiii.
Calif.

Bauman

ered

and

hopper

cars

cars,

and 100

have

James

Graham was

with J. Earle May &
u

»'
Win- cost $3,759,700.

—

even

worse

quarter, but the

re¬

despite the full effec¬

Associated

the

offering

—L

£heai*son, .Hajnmill ,& 9Q*
J

Master

-A

Hutchinson

Co.

are:

W..

Co.;'

an0^ke*:'
$10,000,000 to $12,000,000 annually.
judging by the road's estimate of
the effect of the Dec. 28-Feb. $3
increase of the same 5% nominal

tiveness of the increase, less "hold-

the Illinois Central since thev ap-

since

This would be

amount.

downs," in the latter period. Holddowns are an important factor for

having

represented

over

41%

its total tonnage in 1956. Mostly as
a Tesult of hold-downs and rate
adjustments to retain traffic, parOcularly against low-rate Mis-

something

equivalent

between $3.25

apd

$3.85 per share before taxes bqt,
decision

before

some

not

expected

time in August,

only

third of this at most would

about

come

in 1957.

',!<

Peterson & Co. Opens
HOUSTON,

Tex.

—

Peterson

gissippi'River barge competition, Company has been formed wijh
freight revenues of the Illinois offices at 3511 South Mam Stref,
Central showed an increase of only to engage in a secunties bu
^js.
3% in 1956

increase of
the 6%
v

become

.1 i..

cov¬

estimated

connected Dick
&
Merle-Smith;
Rwith Irving Lundborg & Co., 1134
pih & Co . Freeman &
Graham

the staff of Jensen & Stromer j .426
^raviously
East Fifth Street.
Co.

by 300 gondola

Lundborg

(Special to The Financial Chronicle)

MENLO
ijvy

the first

sults for the second quarter were

inclusive

JTi)rk.Gdy»

the

Planning associates on June 21 offered $2,- piy to coal, and this commodity is
-nt
v
tv,
925,000 of Erie Railroad Co. 43A% a most important one for this road,

Agency, Inc., 52 Broadway, New

(Special to The Financial Chronicle)
'nKumui'

DENVER,

fii

vrtDr

YORK

revenue

The second part of the increase
too late to be of much avail

for

Halsey,

Now Washington

George R. Harris With

road's

but

against the nominal
4.8% arising from

some

Now Bertner Bros.

increase of March 6, 1956

which

consequently

v-firm
were in

l^u

Brothers

T1ATY1G

Securities

Bertner
Corporation

effect for only .about 80% of the Brotners oe
Bertner
year' T,he average freight rate u£ has been ^
|ompany has r?.
S^Sj^ offices toVwaU d.
was ^actuafiy 3"68%'but this was
York City
offset at least to

small extent by

wew

xorx uiy.

The Commercial and Financial Chronicle

(3014)

The following statistical tabulations

Indications of Current

latest week
week

Business Activity
steel

Indicated

oil

.June 30

gallons each)
1
to stills—dally average (bbls.)-

*85.2

88.0

*2,181,000

§2,220,000

output (bbls.)—
output (bbls.)
Distillate fuel oil output (bbls.)—
Residual fuel oil output (bbls.)
June
Blocks 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
Residual fuel oil (bbls.) at
—June
Gasoline

Kerosene

2,114,000

2,252,000

DEBITS—BOARD

7,065,650

7,511,100

H,727,000

8,080,000

8,131,000

May

27,966,000

27,057,000

27,363,000

1,722,000

2,003,000

1,875,000

2,034,000

14
14

-11,846,000

12,460,000

13,003,000

7,645,000

8,341,000

7,798,000

7,953,000

27,254,000

22,854,000}

23,793,000

86,830,000

64.996,000

42,870,000

41,246,000

39,426,000

746,125

733,477

722,521

801,421

612,560

580,704

615,799

646,926

$370,829,000

$417,704,000

$338,914,000

$443,517,000

CONSTRUCTION

ENGINEERING

New

—
—

—

June 15

(tons)-——

anthracite

Pennsylvania

June 15

June 22

—

INDUSTRIAL)

—

FAILURES—DUN &
of

May:

138,001,()OC

136,014.000

207,924,000

96,003,000

113.166,000

Construction number

35,033,000

49,038,000

24,835,001

10,300,000
612,000

10,020,000

9,005,000

10.122,00C

602,000

509,000

538,001

129

*125

120

131

Commercial

Electrolytic copper—
?,
Domestic refinery at

(St.

}

$64.56

$47.17

-June 19

29.050c

31.200c

-June 19

28.400c

29.000c

29.375C

40.875<

14.000c

15.000c

T, r'■.•■■■16.000c

13.800c

14.800c

15.800(

une

31.525C

une

11.500c

11.000c

25.000c

; 98.250c

98.250c

11.500c

CONSUMER

-June 19

AVERAGES:

Industrials

96.07

.98.57

94.56

96.07

86.38

86.78

91.34

91.91

94.56

95.01

June 25

93.23

93.67

June 25

Group

95.47
94.12

June 25
...

108.34

3.67

—

___June 25

4.04

.__June 25

3.44

3.4

Group.

Group

3.99
411.7

254,633

323,485

255,800

235,16f

287,444

263,469

286.720

289,32f

419,664

455,338

423,348

Production

(tons)

June 15

Percentage of activity.
Unfilled orders (tons)

June 15

at end of period—

•

ACCOUNT

BERS, EXCEPT ODD-LOT DEALERS AND

MEM-

110.33

110.22

Short sales

Other

287,560
1,301,700

1,176.950

1,530,410

1,589,260

1,442,850

——————June
—June

211,520

271,780

339,970

178,150

15,800

14,700

June

purchases

Short sales

—

——

—

218,520

296,880

305,850

192,950

311,580

325,400

210,650

sales

Total

582,304

104,960
510.6

EXCHANGE

—

AND

■

'•*»"

SECURITIES

EXCHANGE

490,040

615,640

754,108

557,577

1,832,440

2,337,210

2,522,754

J.
'

sales

Number

dealers

(customers'

-4.

■

337,940

422,620

425,950

323,690

1,650,500

2,035,070

2.242,818

1,887,387

1,988,440

2,457,690

2,668,768

2,211,07.

1,356,428

1,093,39"

$58,590,113

$67,445,684

$69,649,842

$55,850,219

Customers'

June

other sales

1,184,497

1,174,170

8,674

7.4C6

6,078

June

879,940

1,175,823

1,166,764

York

New

(per

$59,018,009

$59,467,289

FOR

June

237,090

353,590

307,750

LABOR

X-

Straits

refined

(per

237,090
1

353,590

430,160

354,260

307~750

175~680

454,620

Production

14.000C

£92.881

91.375c

90.750c
78.892d.

;.•'■ $2.80758

97.038c:

99.452c

98.409c
*

$35,000

S-35.000

$35,000*

5265.231.

3225.000
*

36.590c

36.530c

26.470c

33.000c-

33.000c

33.500c

.2.

33.500c

33 500c

$92,692

$104,154.

S1.700CC

$1.70000-

$92,000

—•

$1.10000

$1.70000

$1,70000

■-

SI.70000

$1.70000

$2.00000

...

$1.70000'

1 $2,60000'

£■

27.100c

25.900c'*

25.000c

27.100c
25.000c

35.250c

•.

Not Avail.3

35.250c

.74.000c

74.000c

S2.25

33.750c;
64.500c

$2.25

April:

Truck

and

8,104.362

Bus Tires

1."

...

*8.006.608-

•

*8,630,008

7.530.179

*18,067,612

17,648.978

(Number of)—
'

-3,486.248.

1.303,367

♦1,135,649

1,071.623

1.271.262

*1,107,088

1,276.829

Production

—

7,847.366
*

'7,878,438
17,821,312

;

$2.25;

ASSOCIATION,

...

Inventory

Shipments

"3,482.973

*3,675,082 X.

"•
;

349,726

323.347 '

318,370

278.929 1

669,136

380,796
282,271

758.498,

842.801'

June

524.130

8,802,590

11,432,460

11,890,590

8,703,810

June

(194 >-49

507,570

9,230,700

11,940,030

12,414,720

9,131,520

427,710

Inventory ^
Passenger, Motorcycle,

;

Truck

Tubes" (Number of)—

and

Bus

Inner

DEPT.

Shipments

Proeluction

190):
June 18

117.3

117.5

117.2

114.0

90.7

"90.9

89.7

105.2

*106.3

105.3

101.9

June 18

92.6

96.5

91.7

79.4

June 18

125.3

125.2

Shipments

90.7

June 18

121.4

;

—

Tread Rubber

3.397,399
3,821,887

3.094.185

6,539,561'

7,311,755

(pounds >

commodities other thru

farm and foods

Production

Inventory

♦Revised figure.
?Includes 1,008,000 barrels of foreign crude runs.
§Based
of Jan. 1, 1957, as against Jan. 1, 1956 basis of 128,363,090 tons.
tNumber
Plan.

tPrime

Western

Zinc

sold

new

annual

orders

not

capacity of 133,459,150 tons
reported since introduction of

•Revised

delivered basis at centers where freight from East St. Louis exceeds

33.945.000

29,073 000

'30,530,000

26,958,000

30,494,000

31,298.000

33,768,000

from
age

East

figure.

St.

Louis
mean

(Based

and platers'

daily

(pounds)

?! Domestic five tons

Exchange.

1 Camelback)—

30,713,000

26,258.000

one-half
pound.

2,797.242 '

3.104,148
3.427,612

6,968,638

June 18

13.500c'.
'.£94.-818:

79.869d

pound)

(per

Production

PRICES, NEW SERIES

Investment

£94.669

;

$255,000

Laredo

Inventory
2.
Tractor-Implement Tires (Number of)—

428,110

June

...

commodities

cent

;

•'

$2.78885

pound)—.

MANUFACTURERS

producers'
as

£98.375

91.307c

INC.—Month

483,540

Meats

Monthl-'

14.000c

79.223d

-•

York boxed
pound), bulk

£109 847

13.500c

$2.79096

;

£111.545--

£111 703

£82.413

••

(check)

Passenger.Tires < Number of)—

Farm products
Processed foods
All

15.800c

pound), boxed Laredo
refined (per ounce).;—

Commodity GroupAll

15.800c

£111.872

£85-777

(SHARES):

—

sales

—

Avail..'

16.000c

16 .000c

■

12.423c

ounce)

Shipments
-June

Total sales

WHOLESALE

Not Avail.

11.923c

age jper pound).
Aluminum, 99^, grade primary pig.
1.2.
(per poqiid).—.....2
*'Nickel

sales—

Short sales
Other

MEMBERS

£242,788-

£99.304

Magnesium ingot

175,680

June
—June

ACCOUNT

round-lot

Not

15.185c

(per pound).——
(per pound).
Cobalt, 97(x grade;
2
Aluphnum, 99'";e grade ingot weighted ayer-

RUBBER

$40,421,355

ROYAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
Total

45.531c.
43.118c

29.775c

£241,956

£39.462

(per

Shipments .2

sales

31.517c

29.448C

,15.385c X >

—...

§ Cadmium

774,159

$44,688,041

108.2

121.4

£238,06G

(per pound)..

delivered

(per

Round-lot purchases by dealers—
Number of shares

110.5

124,2-

.124.2

780,237

7,490

June

——

Other

887,430

June

—

H6.5

131.6.119.5

;,5

London.(per long ton).
pound)—East St. Louis——.

London

Bismuth

Dollcr value

1,279,G31

Round-lot sales by dealers—
Number of shares—Total sales—
Bhort sales

122.9

£237,1170

■

1,040,077

June

short sales

125.2

136.4.
*

31.288c

tCadniium
'

June

Dollar value

Customers'

170.8

pound)..—1

(per

Louis

Prime- Western,

Platinum,
tCadinium,

COMMISSION:

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

91.l!
126.4,

175.8

A.ntiinony

STOCK

QUOTATIONS)—

refinery (per pound).

liAntimony, New

purchases)—t

176.8

123.0
,

„

Odd-lot

- 98.1.

,,XX

135.1

111.8
,

Gold (per ounce, U. S. price)—...
—d_
Quicksilver (per flask cf 76 pounds).—

1,882,354

Tune

106.5

99.3

June

(E.

104.8'

X 127.6
;XX..' 92.2

123.3

102.7.
122.1

108.8

136.9

;

X ;
X :

;•

106.8

-125.5

—

(per

Tin,

I,.-

June

—

SPECIALISTS

recreation

Antimony

Total sales

DEALERS

—:

1
——

New York

Silver,

40,090
,r

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

129.7

104.9-

' 126.2

92.0

476,604

118,840

387.990

June

—

139.2

' "XX

y'; 98.7
127.3

—

sales

111.8.

135.5

Sterling Exchange

June

,—

sales

Other

June

Total round-lot transactions for account of members—
Total purchases
,
—
Short

17,700

19,550

102,450

June

Total sales

543,230

371,930

June

sales

131.7

112.4

XX.X

105.1

yy'-1'-'

120.8-

134.4
y

108 J)

y.>;
______

—.

and

106.5

(per pound)

off the floor

—

sales

Other

■

-126.4

••

t';'Zinc, London, prompt (per long ton).^..i_
r.ttZinc, London, three months (per long ton)
Silver and Sterling Exchange—
.
Silver, Now York (per ounce)—
L—____

•

234,320

purchases

Short

116.7:
110.8

124.9

—

East St.

??Zinc,

Total sales

Other transactions initiated

XV-

124.5

94.0
106.4'

111.6

134.5

—

-■>n

Zinc
-

the floor-

116.1

112.4

ttThree months,

302,960

1,227,510

June

Other transactions initiated

•X

138.1

———

,tfPrompt, London (per long ton).

265,90

219,690

Total sales

Other

1.227,600

1,600,480

1,043,990
1,263,680

110.7

107.9

■

1,522,200

1,248,990

—June
June

—

sales

100.6

125.2

;

Common,

;

129.8

111.0

—

«.—

Common,

SPECIALISTS:

specialists in stocks in which registered—
Total purchases
—
—-June

Transactions of

'•/.■'•■

y-X-X1-;: 109.6.

113.2'

Vy..111.4

118.7

...

"•

Lead—•

114.9!

110.5

•

—

Export refinery (per pound)
t+London, prompt (per long ton)——
ttThree months, London (per long ton)——„

]

108.05

110.35

'yjj x!

102.0

boys'
girls'

care.

Domestic

497,608

•,**.•

118.S

E13.8

fuel oil.

Copper—

,*Cv.

130.1

and

PRICES

May:1-

$515,000*

$466,000

—

100

FOR

;

•

$288,900,

112.1

——

Other goods and services—

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
TRANSACTIONS

3.39

METAL

•'

care

Reading

414.9

June 15

ROUND-LOT

X: V,;.

4.16
427.1

June 15

;

—.

Personal

4.19

Orders received (tons)

;

home.

and

Medical
.

119.3

425.2

NATIONAL PAPERBOARD ASSOCIATION:

3.46

$762,300

.**.' -V';-

Private

3.50

—June 25

$59,901,000,

Other apparel
Transportation

3.7L

4.14

.—June 25

MOODY'S COMMODITY INDEX.

AVERAGE

4.55

;

Public

4.00

4.28

4.07 :

619,000;

'.V'v

?>.
Women's

4.00

4.32

*r"

electricity—

Solid fuels

3.36

4.65

4.68

•

■

$483,000

194 7-49=10(h-

—

Housefurnishings
Household operation

•

3.2

4.10

INDEX

Footwear

4.04

.—June 25

8,877,000-

•

$57,103,000

..$300,000
;•

„

2.9:

;

3.78

—June 25

Group

•

Xi',.:

June 25

Baa

4.10

4.13

5,713,000
13,242,000*

9,090,000
•3,878.000'

3.84

4.17,

.•''X

106.04

3.93
..

$28,450,000*

11,855,000.:

$52,552,000

and

Gas

3.4

——

1,164"

YORK—

and

Other foods

104.83

96.23

NEW

Housing

99.84

96.07

4.00

4.21

3.97

—

June 25

—June 25

Average corporate

Utilities

103.30

^93.97

hornet

Men's

DAILY AVERAGES:

YIELD

Aaa

Industrials

104.31

BOND

U. 8. Government Bonds

94.

.X-y.

106.56

88.13

y.;

DEPT.

bakery products—f
Meats, poultry and fish——_T„
Dairy products
I
:_1_______
Fruits and vegetables.———
:

104.66

99.52

.June 25
..Juno 25

—

88.91
95.47

97.16

.June 25

Group
Utilities Group-

86.52

93.52

96.54

1
at

Cereals-

94.56,

86.44
92.93

BANK

—

Food
Food

94.750c

.June 25
.June 25

Railroad

„x

15,994,000

•4,728,000

(000's omitted)___'

PRICE

items

24.000c

.June 25

——

Aaa

Baa

All

13.500e

.June 25

—

Average corporate

132

113

816,286,000

10,820,000

OUTSTANDING—FED-

Month of April:

pig. 99% ) atj
8traits tin (New York) at

PAPER

As of May 31

;-r:

14.000c

11.500c

45.250c

12.000C

ane

•

une

(delivered) at
Louis) at

(East St.

Aluminum (primary

—

RESERVE

ERAL

;

6,430,000

liabilities—_____

575'

172

/1,175

118

}

580

1,200

r.:

——

CORPORATIONS—U.

COMMERCIAL

QUOTATIONS):

MOODY'S BOND PRICES DAILY
U. 8. Government Bonds

liabilities

$44.83

$64.56

$54.83

(New York)

Lead

;

$64.56

atLouis) At

Lead

;

-181

15,686,000

service

$14,888,000

—

COMMERCE—Month of May (000's omitted)

$60.2.

$56.17

—v————~

—

3ASII DIVIDENDS—PUBLICLY REPORTED

5.179c

•

refinery

Export

•

liabilities

Commercial

——.June 18

—,

J_"
liabilities

liabilities

Construction

•

number

liabilities

245.

115

132
GOO

245

".309

5.G70C

5.6Y0C

-June 19

& M. J.

PRICES (E.

;

service

190

'
,

1_—

yyh

205

y..

11,478,000

11,574,000

265

241

5.670c

525,224,683"

BRADSTREET,

number

Total

June 20

70,889.351

504.382,981

——————

Manufacturers'

"Retail
•

11,958,000

$596,114,034

'83,437,237

number

Wholesale

12,337,000

$587,820,268

;

Retail number

Total

22.545,547:
96,616.199

496,986,849

-7-

145,041,000

Pig iron (per gross ton)
Scrap steel (per gross ton)—

Total

39,352.525,

20,335,961

$560,619,567

States

242,957,000

DUN

—

PRIOES:
Finished steel (pec lb.)
AGE COMPOSITE

1949

35.470.442
128,291,173

X-

——•

City

Wholesale

June 18
une 10

INC.-

BBADSTREET,

Public

35,294.927'
20.289,611

63.632,718

United

York

305,516,00

>
—

(COMMERCIAL AND

FAILURES

Railroad

.114,620,679

193,873,000

;

INSTITUTE:
output (in 000 kwh.)

ELECTRIC

MOODY'S

f0,481.087.

174,747,000

INDEX—FEDERAL RESERVE
SYSTEM—1047-40 AVERAGE = 100
June 15

Public

144.388.829.

82,445,303

84.473.659

L_*

•

185,672,000
185,157,000

SALES

DEPARTMENT STORE

tZinc

57.389.673"

113.863.048

—

INC.—Month

8. BUREAU OF MINES):
and lignite (tons)—

coal

Bituminous

Zinc

118.566,051-

51,427,308

120,383,300

Manufacturing number—

COAL OUTPUT (U.

METAL

$26,774,123.

131.698,857

BUSINESS

June 20
June 20
June 20
-June 20

and municipal

State

IRON

'X}XyxXv'

$23,288,176

Outside New York City_

ENGINEERING

—

construction

Electric

xyyXXX-

,>$23,928,277
109,067,241

•

;

49,143,000

Private construction

IDISON

$185,584,000

47.561.873

•

Central

PaciliC

construction

Public

8192.492,000

yXX /Xv

•

Mountain

freight loaded (number of cars)

NEWS-RECORD:
Total

Ago

37,319,000

June 15
freight received from connections (no. of cars)—June 15

Year

CITIES-Month

•

Central

West

181,487,000

196,383,000

193,565,000
*26,148,000
101,789,000

INC.—i 15

DUN

—

East Central
South

26,787,000

TREF.T,

Month

$197,181,000

—

VALUATION

South Atlantic

7,563,000

191,601,000

thousands)

England

Total

CIVIL

(in

PERMIT

SYSTEM—Month

Middle Atlantic

•

106,171,000

GOVERNORS

May:

New

Vl,044,000

•

FEDERAL RESERVE

BRADS

7,337,950

7,294,050

14
14

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

;

of that date:

are as

Latest

14
14

—

Revenue

either for the

are

Month
BANK

85.9

BUILDING

of
June 14

June
———June
—June
June

Crude runs

of quotations,

cases

Ago
THE

condensate output—dally average (bbls.

and

or,

Year
r

PETROLEUM INSTITUTE:

AMERICAN
Crude

Ago

§86.7

.June 30

Equivalent to—
Bteel Ingots and castings (net tons).

production and other figures for the

cover

Dates shown in first column

that date,

Thursday, June 27, 1957

Month

Week

operations (percent of capacity).

month ended

Latest

INSTITUTE:

STEEL

AND

IRON

AMERICAN

month available.

the producers' quotation. "(Based on the average of the.^
^Average of quotation on special -shares .to plater.
than carload lot boxed.
§5 Delivered where freight ;

quotations.
more

but less

exceeds 0.5<r.

and

bid

and

**F.o.b.

ask

Fort

quotation

Colburne, U. Si duty included,
at

morning

session

ft Aver¬
London Metal

Number 5650

Volume 185

The Commercial and Financial Chronicle

its

projected $30 million of a35debentures.
Bdt evidently
after taking a new look at things
it decided to revise the borrowing
terms.
Bids are due July 9.
Among other things, it plans to
make the redemption price 110
for the first five years and adjust
other phases in keeping with that
year

move.
.

July Fourth Slowdown
The

-J

Sentiment
around

has

This

experienced

the pace of corporate de¬
is slowing almost to a halt
consequence of the holiday.

mand

came

Only two debt issues of

size,

any

Edison

California

Southern

Telegraph Co.'s offering, with the
apparent
demand
sufficient
to
.blast away some of the gloom that
had been overhanging.
And with the limited markup

deemed i during the 12 months
ended July 1, 1958 and thereafter
at lower prices depending upon
the date of redemption,
Chance Vought, which recently
Reilly, Hoffman & Sweeney,
observed its' 40th year of airInc. on June 21 announced that
craft production,
is
a
leading
the
issue
of
100,000 shares of
manufacturer of aircraft and
guided missiles for the Navy. At Saratoga ^Plastics, Inc. common
stock offered by them at $1.75
the present time it is producing
per share has been all sold. The

Co.'s

$40 million of 25-year, first and
refunding bonds and
Rochester
Gas & Electric's S15'million of 30-

first mortgage bonds

year

price level of the corporate
list, the Treasury market, espe-

due

are

for bids.

the

Mountain

States

Telephone

^lvith^itoi^dTe^rienced Telegraph Is slated to

Kettering, Frankel Co.

Saratoga Plastics

Common Stock Sold

supersonic,

carrier-based fighter which set a
national speed record of
1,015

stock

actively

traded

PITTSBURGH, Pa.
Frankel

Co.,

Kettering

—

Inc.

has

been

formed with offices at 204 Smithfield to engage in a securities
business. Jesse E. Kettering is
principal in the firm.

Aetna Secs. Branch
SOUTH

the

MIAMI, Fla.

Aetna

—

Securities Corporation has opened
a
branch office at 583£ Sunset
Drive under the direction of L.

Over-the-Counter Market.

Saratoga

Plastics, Inc. was in¬
next miles per hour in 1956. It is also
corporated Jan. 31, 1946 in New
producing the RegulUs I and York. While located at
Saratoga, Blanche Bowen.
Regulus II, surface to surface N. Y. the
company was engaged
.
guided missiles which can be almost
Coburn Middlebrook Br.
exclusively in the capacity
launched from submarines, sur- of a custom
plastics moulder and
EAST HARTFORD, Conn. —
face ships or shore bases.
extruder for various manufactur¬

costs,

In the wake
of the decidedly successful flota¬
tion of Southern Bell Telephone &
upturn

(3015)

Fourth of July holiday by
a
at the new issue calendar
for the period.
i
:! •
After the recent flurry of activil1 face of stiffening borrowing

mild

from, the recent lows.

quickly ' aware

corporate new issue
market this week, but few, if any,
were
willing to' stand up and
cheer
real
loud.
The
seasonal
recovery

underwriting fraternity be-

carr~

better

the

market

trifle

was

the F8U-1 Crusader,

open sub-

ing

Pacific Finance

concerns. Because of its pur¬
chase of the assets of J. G. Bald¬

Corp.

win

Cobum & Middlebrook, Incorpo¬
rated,, has opened a branch office
at

415

Main

Street

the

under

Co., Inc., of Bellows Falls, direction of David
Mbseley.
the company was able to
enter - the
cable
assembly and
New White WeW Branch
An underwriting group headed
processing field.
jointly by Blyth & Co., Inc. and
BALTIMORE, Md. — White,
Operating in its new facility at
Hornblower & Weeks offered pubNorth Walpole, N. H., Saratoga Weld & Co. has opened a branch
licly on June 25 a new issue of
office at 18 East Lexington Ave.
Plastics, Inc. furnishes various
164,604 shares of $10 par value
specialized services to end- under the management of John A.
common stock of Pacific Finance
product manufacturers. Essen¬ Brady.

Common Stock Offered

Vt.,

Corp. at $39.50 per share,

tially, the company operates two

With Townsend, Dabney
scriptions on "rights'- for 584,176
The company will add the pro- divisions—a molding plant, pro¬
with the spread between govern- shares of stock to holders of rec- ceeds to its working capital which ducing complex and highly prePORTLAND, Maine—John M.
•ment and corporate yields having ordJune 20 in the ratio of one may be used to reduce short-term cisioned compression molded parts
Brewer, Jr., is with Townsend,
widened
well
beyond what: is share for each five held, "rights" bank loans. As of April 30, 1957, for electrical equipment and elec¬
Dabney
& Tyson, 184 Middle
viewed as normal
there was a expiring July 31, and National these - short-term bank loans tronic equipment manufacturers— Street.
'"disappearance of bids for Treas- Telefilm Associates, Inc. is due to amounted to $157,190,000.
ana an assembly plant, manufac¬
urys which let the list down sort offer $5 million of notes and 350,; Pacific- Finance, directly or turing electrical harness riggings
DIVIDEND NOTICE
of hard.
^
:
000 common stock.
v ; i
through wholly-owned finance and other detailed parts of an
bit

Late last

turn.

week,

"•

the

But

government's ran into
Kn+tpi.

.Rfimpwhflt

th^ W?pfc

y Post-Holiday Pickup
.*
gageq 'Primarily in automoDiie
.Even though things are slated sales financing, direct lending to

eariv

demandf

as^timG^nr^r^ed
progressed,

this week and as.time
and

4eLtionshio°r a»waredrmto
been

pretty

irjJJatifn

t
•

bit after the holiday;

thaf —er !S upon us.

h^fede^lteserJi'Board.irhlCh

of Admtotstra-

is "the- bellwether

' But these, plus a smattering of ttrred dividend m«£emento,
equity issues, will be out .of the amounted to $4,639,806, compared
earnings

'■/? The

feeling is that

-SKS-

totaled $4.28

year

too'disturbing since it

prove

...

.....

Qff gf$ UNDUCDVOUCnt

u.viiwiw

wHMHw

electronic
United

for

character

sions and for

many

The United Gat

Government .divi¬

States

growing list

an ever

Improvement

of industrial users.

The net proceeds

Company

from the sale

of these shares have been used to

DIVIDEND NOTICE

increase working capital and may
be used for capital

expenditures.

A jquarteriy

Form

Plymouth Securities

RIVERDALE, N. Y —Plymouth
Securities Corp. has been formed
with
offices
at
2727
Palisades
Avenue to engage

securities

value $13.60 per

tbp

market.

money

Paying the Freight

■

to$1.33 a sharebn 1,085,059 shares
outstanding, compared to net In-

■

y ■

Harriman Ripley & Co., Inc. and

c^e

$',,082,619

the

August 30, 1957.
A quarterly dividend of $1.06M

share on the AM % Preferred
Stock has been declared payable
per

October 1,1957 to Stockholders
of record August

deSmefd^JulV ^77* (con?

its

paid

bonds

the

10L559
for

qUarter of 1956, equal to $1 pei

new

a price of
reoffered at 103.459

and

highest paid
since the early

is the

money

and -marks

the

third

time

brief period that it has been

paid by corporate issuers.; Michi¬
gan
Wisconsin
Pipe
Line
and

Michigan Consolidated
Gas ^ Co.
both accepted that rate recently*
One

other

group
bid for the
Puget Sound issue, naming a 6% %
bidder
while
a
third

coupon,

specified

6V2% interest rate.

Originally, Wisconsin Telephone
a redemption price

Co. had fixed
105

for the first five

prfeed

at 100 %

will be

term

used

loans

bank

outstanding in the amount of $30,000.000; tire bank loans were in¬
curred primarily to finance increased

inventories

receivable
tinued

and

the

years

more, Bruce & Co. with offices
2512 Q Street, N. W. to engage

DIVIDEND

company's

by the company's unfilled orders

$188,000,000

Dec. 31,

1954.

Oct.

which

retire

becomes

holders of record at the close of

NOTICES

1962

and is
least 75%

prior to maturity.
fund

the

redeemable
company

the

option

105.25%

1957,

JOHN

with

;

are

new

take

the

11/
r

of
re-

YOU will

Board

intelligently experiment

getting

for this experience and knowledge.

experienced

production..

trader,

wholesaler

Box B-6?7, Commercial & Financial Chronicle
25 Park Place, New York 7, N, Y.

4.48% CONVERTIBLE SERIES
Dividend No. 41

COMMON STOCK

28 cents

NO.

DIVIDEND

June 19, 1957,

Inc.

Dividends:

per

60
Wh

15,

record

of
2,

check

June 20, 1957
Bogota, New Jersey

common

record

business

par

This divi¬
be
paid by

July 15, 1957, to
stockholders

at
on

share;

PREFERENCE STOCK,

4.56% CONVERTIBLE SERIES
Dividend No. 37

28% cents

per

share.

the

The above dividends

are

able

stock¬
July 5.

July 31, 1957

holders

of record

pay¬

Checks will be mailed from
the Companys

office in Los
Angeles, July 31.

June 28, 1957.

K. C. CHRISTENSEN,

p.C. hale,

Treasurer

Mm,

common

stock.

on the 4.6% Cumulative
value Preferred Stock are pay¬
able September 15, 1957 to stock¬
holders of record August 28, 1957.
ROBERT A. WALLACE
Vice President and Secretary

$25

sec¬

of the year of
per share upon

will

dend

dividends are payable

declared

Company's

capital

1957 to stockholders
the close of business July

cents

the

Common Stock.

4.6%

ond quarter

dividends:

Cumulative Preferred Stock.

per

166

cash dividend for the

of Directors of

1957.

and retailer with

The Board of Directors

28V\4 per share on the

ideas.
pay

Dividend No. 190

PREFERENCE STOCK,

Common stock

willing to

<•,

COMMON STOCK

60 cents per share;

DIVIDEND NOTICE

Dividends

YOU

Company

re¬

50tf

Pacific Gas and Eledricj

KENNEDY

Vice President and Seer"*''

of
following quarterly divi¬

dends:

to stockholders of rec¬
of business on July

the

Federal
Paper Board Company, Inc. has this
day, declared the following quarterly

will

the

1Q*\7

The

that

The Board of Directors has

authorized the payment

<j>f the issue
will

California
Company

DIVIDENDS

of the company, payable

They also will

designed

Southern

Edison

July 12,1957.
Treasurer

For the sinking

debentures

deemable at par.

methods

enough

June 26,1957

Street, New York 4, N. Y.

Broad

July

aggressive

are

business

The Board of Directors of this company
on June 19,
1957, declared a dividend of
20 cents per share on the outstanding

ord

sinking
operative

tomorrow.
YOU

August 1,1957, to share¬

pany on

VINCENT T. MILES

August 15,

The debentures carry a
fund

willing to build for the future and not for just

are

per share payable on
the Common Stock of the Com¬

a'
in

CITY INVESTING COMPANY

Common SWck

slack in production.
YOU

quarterly dividend of

cents

business. This growth is evidenced

-IFinterested

...

Common & Preferred

are

clared

securities business,

con¬

FEDERAL PAPER BOARD CO.,

YOU

The Board of Directors has de¬

Whit¬

formed

have

Bruce

Kaipl
Duncan

—

E/ Whitmore,

accounts "a

resulting from the

growth

WASHINGTON, D. C.
Jr.
and

reduce

presently

STOCK

COMMON

Whitmore Bruce Formed

substantial portion of the net
proceeds from the sale of the debentures

DIVIDEND

second Quarter of the current year

short

Philadelphia,^June^^25, 1957.

QUARTERLY

five years> but they weri
raised to 60 cents^ share in the

aggregated $508,000,000 on
March 31 compared with $214.000,000 at the end of 1955 and

question about buy¬
ers having the leg up in the bond
market at the present time.
One
after another, potential borrowers
have been moving to "sweeten up"
their proposals to assure accept¬
able bids.
■....

Quarterly dividends of 50 cent
for th
ghare^" had been paid for th

which

It's A Buyer's Market

There's

;

San Francisco, Calif.

PZ
■

June 21, 1957

Treasured

LONG ISLAND LIGHTING COMPANY

Bankers*• Pa^

company

coupon

2930's
in

week.

yield of 6%.

The
for

this

30, 1957.

Johns Hopkins,

first

1,082,846
had to accept a 6V*% interest j-ate
in
nwim.
in
order +n merirnt «9o million
to market $20 miiiirvr..debentures dueJuly 1, 1977 (con-

NOTICES

DIVIDEND

share, has been

declared payable September 27,
stockholders of record

■

Aircraft DcbGntlirSS

MilVIail «"""«««*

•

per

1957 to

•

dividend of 50c

share.on the Common Stock, par

1,083,883 shares outstanding,
compared to $4.26 on 1,082,425 business. Officers are Franklyn I.
Outstanding shares in 1955. Tn the Steinberg, President and Treas¬
fi^t quarter of 1957, net income urer, N. G. Steinberg, Vice-Presi¬
wnsVeported as $1.446.330, equal dent and Secretary.

markup in

would be little more than recogni..

last

■

thevbank; rate ^at thisv time should;
not

and

^ane of insurance. The company

has been sticking twits guns. II

automobiles

on'

the new issue roster clearly indi- other personal property, and the

Hob forces in this phase of things,

consumers

The calendar, a fortnight hence, and its subsidiaries have 312
wwvtiSfl reveals a potential total of over branch offices in 19 states, Alaska
iff*®',$136'million in corporate debt is- and five provinces in Canada.
^.sues as irkely to reach market. '
Net income in 1956, after pre-

rru

.The
sion, °f

to-pickup

have

•

Treasurer

The Commercial and Financial Chronicle
48

Thursday, June 27, 1957.

(3016)
Vast

BUSINESS BUZZ

if necessary

pile

Washington

the

Behind-the-Scene Interpretations

And You

Capital

(rem the Nation's

"deliver"}

the existing stock¬

Further-

bombs.

super

; more, such an agreement will
not diminish the drive to build

•

will still he spent to

sums

get the machinery

use

tactical

atomic5

weapons.

[I [This column is intended to

re¬

flect the "behind the scene" inter¬

Nothing could
from the truth. Credit

viously available.

George Humphrey, Secretary of
the
Treasury, has struck out

be further

of the fond¬

hard against some

amount pre¬

of credit below an

c.—

Washington,

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]
>

entrenched suppositions of
the "liberals," both Republican
and Democratic. He did this in
est,

aggregate, the aggregate

the

new

savings and

his appearance before the SenBate Finance Committee in its

inquiry into the financial condi¬
of the United States.

tion

EVENTS

and

tially in the last four years,

COMING

bank
substan¬

new

expanded

has

credit,

equal to the
need," he declared. Credit new
outstanding, he said, is S146.5
billion more than in 1952.

fully

rate

Investment- field

(New York City)

June 28, 1957

hypotheses of
"liberal" dogma is that the de.One of the main

sistance of the Federal Reserve

credit

bank

manufacturing

from

System

sharply

has

de¬

both school construc¬
and municipal borrowing

pressed
tion

// ;Bi;B',

generally.
the

"In

four

past

years

quarter of a million new school
rooms have been built for our

youngsters,"
said
Mr.
Ilumphrey." Total public construc¬
tion in 1956 was 23% above 1952 B
levels,

educational

and

struction

avoided

tary

con¬

56%." The Secre¬
mentioning that

Federal aid for school construc¬
tion

was

program.

-v;

this

Secretary

the

subject

B B,

cited

factors

Other

included: During 1956 new

bor¬

rowings by states and munici¬

palities alone were $5.4 billion.
During the last nine months for
which
figures
are
available
more

bonds to finance elemen¬

V mis

effort

eral"
out

;

increased

has

other

any

four-year period, he said.

; B

Corporate Profits
dollars,"

risen

has

income

"Labor

not

only ;
the B

said

Secretary, "it has increased from
67.2%
of national income in
1952,

69.8%

(while

1956

corporate profits declined from;
12.7%
of national income, to

added.
Another
"liberal" dogma is that the cor ¬
porations are getting richer at
the expense of labor.

11.9%),"

spending, and
reduced
taxes, Mr. Humphrey did, in the
acb'eve

Humphrey depre¬
cated higher interest costs as a
major
factor
in
depressing
housing
construction
volume
Secretary

this year.

costs,"

wage

construction
the

effect

example of the

rising

"Hourly

stated.;

rates in building
risen

have

21% in

past four years." lie

that

tools

some

had

industries

tended

added
better

offfset ris¬

ing labor costs.

mechanization

not

practicable or in which restric¬
tive practices or legal require-;
ments
have
prohibited
maxi¬
mum efficiency, the cost of the
finished product
has risen in
close relation to the increase in

hourly
better

There is

wage rates.

example

housing,"

Mr.

than

this

Humphrey

as¬

B All

tistics.

this has become

task

Boh

Senator

Kerr

has clone his home

good

very*

(D..
work

using

took.

out

into

Mr.

Humphrey
of

a
•

stand
-

Treasury

Mr. Humphrey

—

'\B B

■

over
on

the

policy
Mr.

are

magnitude

the

said to be

views

Treasury
with
on

the

1958, after which a slow-down
reach toward
2.5 million

comes

all

but

are

those

Mr.

the support of the
Federal Reserve.'

Anderson

assertion

recruited

was

—

has been trying to

get out of the Treasury for al¬
most two years.

Furthermore,

the

White

the

any

ac¬

derson

—

also including missile

House

no person

part in picking
to

in the

Politbureau

succeed

had

Humph¬

B'.B...

sources

ago,

were

say¬

ing that the U. S. must simul¬
taneously build up both guided
missiles
and
manned
aircraft,
that

would

the

range

before guided
missiles became so dependable
that
there
could
be
a
sharp
phase-out of manned aircraft.
Now, as a result of the recog¬
nition
of
the
inevitability of
higher costs, the Administration
is said to be planning to phase
out

much

aircraft

manned

sooner.

Even

reached

some

with

agreement

Russia

tee that if the pressure gets very

bank

credit

"The

has

been

re¬

Federal

has nit reduced

great, that there will never be-

spending

"tight money
high interest rates."

available credit," the

explained.

Board

the volume

"Some

Secretary

current

dis¬

cussions of Federal Reserve pol¬

icy proceed on the mistaken as-;
sumption • that the Federal

Unserve has reduced the amount.

Calif.)'

VB:

Association

./ ■
Exchange

Stock

Firms Board of Governors meet¬

ing at Beverly Hills Hotel.
Nov. 3-6, 1957
National
ciation

;

(Hot Springs, Va.)

Security Traders Asso¬
Convention

Annual

the Homestead.
Dec. 1-6, 1957

J ;

;

(Hollywood Beach,

Fla.)
Investment Bankers Association
Convention

Annual

Holly¬

wood Beach Hotel.

April 23-25, 1958
Texas

Association

ers

(Houston, Tex.)

Group Investment Bank¬
annual meeting

the Shamrock Hotel.

June 9-12, 1958 (Canada)
Investment Dealers' Association
of Canada annual convention at

Manoir

Richelieu, Murray Bay*

Quebec.
29-Nov.

Oct.

1958

Springs,-Colo.)

(Colorado

....

...

This, of

and

course, is no guaran¬

production of

super

bombs,

however, this is said to be

belowr

$38.5

the Broadmoor.

Forms G. L. Sommer Co.
(Special to The Financial Chronicle)

CLEVELAND, Ohio—George L.
Sommer is engaging in a securi¬
ties

business

from

offices

Tudor Arms under the firm
of G.

the

name

view

the

fact

that

the

A. S.

Treasury obviously is going to
have a more than normally dif¬
ficult time in the months ahead,

eral*

view

Reserve

the

were

fact

Fashion Park

that

United States Envelope

Morgan Engineering

Carl Marks

into the banking system,
perhaps Robert B. Ander¬

FOREIGN

might have somewhat dif¬
fering views from his prede¬
cessor
in the Treasury Secre¬
taryship about the virtures of

have

TEL: HANOVER 2-0050

•

Co Inc.

Riverside Cement

Flagg Utica
SPECIALISTS

NEW YORK 5, N. Y.

TELETYPE NY

•

LERNER & CO.

1-971
-

Investment

Securities

10 Post Office Square,

Humphrey

may

stellar

In persuading the Eisen-

been

success

SECURITIES

20 BROAD STREET

money.

George

less

than

National Co.

pump

money

"If

Botany Mills

Campbell Co. Com.

Indian Head Mills

son

honest

& Co.

TRADING MARKETS
.

Sommer

un¬

billion.

■.

National Security Traders Association Annual
Convention at

Anderson Position

that

Reserve

)

10-11, 1957 s (Los Angeles, v

likely to cut fiscal 1958 defense

fires

and

that

stopping

the

these problems of the Treasury
would be dissipated if the Fed¬

stricted in growth.

of about 10 years

complishments, before turning
to light at Mr. Humphrey's feet,

Bank Credit Increase

hyothesis is

ing at Mark Hopkins HoteL;
Oct.

before 1962.

until several weeks

authoritative

Mr. An¬

Mr.

rey.

serted.

Another "liberal"

Exchange

Firms Board of Governors meet¬

million

per

will

privately as long ago as last
by. Mr.; Humphrey,
January
who really—not just for public

Okla.)

of fiscal

pounds

that Mr.

be reported

may

Humphrey

statistics

latter

the

into

identical

appeared to observers of
that Senator Kenaiming to make a monkey

when he

Anderson

Anderson's

Eisenhower record

deliveries

Anderson, Humphrey, Agree

the hearings
was

frame

frames—by

since*

himself.

air¬

Current

1958.

May

the first few months of calendar

orous

and

procurement beginning

about

stand for sound money, as vig¬

diffi¬

especially

Treasury,

change

Force that
cut-back
in

mereiy avoid taking a vigorous

sta¬

Secretary

the

for

will

there

Air

Mr.

comes

ducing the debt" and "reducing

cult

for

the

week.
These are
expected to rise to a weekly rate
of about 6.5 million pounds for

for

rec¬

In view of the

passed

word

the

behind

That

someday

urged by the Administration on
the Reserve System, would be

the

the
has
to

reported

firm, conclusion

aircraft

might

that

necessary

accomplishment for "re*;

expenses."

against

line

Secretary

trying to hold

assertions

"However, in those fields in
which

monetary ease.

■

ord

Mr. Humphrey is cred¬

President

the

of
might not have
appeared so relatively impera¬
tive to Mr. Humphrey.
has been

that

Administration

now

reached

military spending in fiscal 1958
to a maximum of $38.5 billion.

Eisenhower

tant single force in helping keep

opportunities

the

Eisenhower

ited with being the most impor¬

Steel

Nevertheless,

hold U. S. Defense Department

policy.

that if
being made to¬

the

Association: of Stock

Spending

Holds Defense

President

Oct. 7-8,1957 (San Francisco, CaL)

B.B/:.;B:B'Br"

back Federal Reserve monetary

ing

stake. Mr.

cutting expenses and re¬
ducing taxes, instead of the

opposite,

believed

every one,

in another di¬

chiefly responsible for persuad¬

probable

National

most

success

rection.

ward

the

"Housing is perhaps the most

;

than the govern¬

were

-B-i '■

Meeting at Santa Barbara

Biltmore.

change in monetary grape

nuts.

B admission

Eisenhower Administration

Housing Costs

dramatic

progress

inactive?"

any

lower

Steel needed his services

ment.

Country

-•

Sept. 25-27, 1957 (Santa Barbara,
Cal.)
/ ..BB,
Fall

privately, takes the view
resigning because of
disagreement with President,
Eisenhower's fiscal policies. He
just suddenly found that Na-t
more

are

hower Administration to go fol¬

not

much

just what makes you think our

Club..

is said

frolic and golf tourna¬

Investment Bankers Association

Humphrey both publicly, and it

tional

of / Denver-Rocky

ment at the Columbine

markets

Humphrey Problem

at the

Club ;

Mountain Group of IBA annual

This was

under torture

(Denver, Colo.)

Aug. 1-2, 1957

PoGrt

-■

and

in the nation's history.

"And

Texas, the Democratic leader.

Senator Lyndon Johnson of

•

summer

BB'B.

publicly and vigorously backed
by

-■

issue

;

Bond

George Humphrey is obviously having trouble carrying off
his role of being the prisoner

financing
has increased by $18.8 billion In B
the past four years, more than

■%-/::

•

money

rates.*

interest

high

make

(New York City)

Cove, Long Island, New York.

Senate "lib¬

"tight

the

outing at
Club.

Syndicats annual outing at the
Nassau j. Country
Club,, Glen

not changed.

Second, it is the

York annual

New

June 28, 1957

icy. The Senator epitomized his
viewpoint one day by suggesting
that the Federal
Government
was running out of both taxing
power
and borrowing power,
and that the country would go
over a financial precipice if pol¬

(New York City)

Morris County Golf

Chairman Harry Byrd
(D., Va.) to call detailed atten¬
tion to what he terms the un¬
soundness otf present fiscal pol¬

were

Club, Rye, N. Y.

Municipal Bond Women's Club

is an

effort by

icies

annual outing at Apawa-

June 28, 1957

/*.

mittee's objectives are.
First and foremost, it

tary and secondary schools were
sold than in any 9-month period
State and municipal

York

■

Hearings thus far have given
what looks like a clear idea ot
what the Senate Finance Com¬

Eisenhower

major

Association of New

Investment

Committee Objectives

„•

Telephone.
HUbbard 2-1090

Bosten 9, Mass.
Teletype
BS 69

Full text of Commercial and Financial Chronicle : June 27, 1957, Vol. 185, No. 5650, Section 1

FRASER