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In 2 SectiewtfeftsSeetion 1 ESTABLISHED 1S39 OF MICHIGAN Re». U. S. Pat. Office Volume New York Number 5442 131 EDITORIAL Further We See 11 As J "Chronicle" The so? What does it think of what is or Opportunities for Building the on continues receive to expressions By ELDEN J. FACER of Associate opinion regarding the Guaranteed Annual Wage phil¬ osophy and the probable economic in the business world in general and on widespread adoption of banking in particular? Will it undertake to do the commentaries received • anything about the boom that is upon us, and if ;it does take restrictive issue for ous to check the growth of what a good many regard rather marked boom, as a jeffect to the dimensions it desires? It is little | short of remarkable how often one hears such as a sense reminiscent of how the Lady of Threadneedle Street was the center of attention in London;in the days of Walter jBagebot. Yet how different is the context in jwhich these discussions take, place! The Bank of I England was the center of attention and interest has f in seen the Union the of director of humanly possible that its paper would liquidate that the thin margins on to meet ' they worked would be adequately pro¬ by reasonable stability in prices and rates. • be in Now, in this year of our Lord, 1955, the gov¬ ernment of the United States has undertaken not dicats" at under placed use. • There . when rich, > be Emanuel : be Celler THIS IN Country - well-to-do the the benefits of are sound of dr. Elden J. Facer these ideas might by paraphrasing statements from two re* textbooks on investments. Every emergency the and fund, question the accumulation of a down of on page pictures taken at the Annual Outing of Club, Westfield, New Jersey, appear on pages Municipal The Economic Ramifications of STATE MUNICIPAL AND • - HAnover 2-3700 EXCHANGE DEPARTMENT "TEN Request' MEMBERS OTHER NEW STOCK YORK ANO 115 Broadway, Miami THE FIRST NATIONAL CITY BANK 1B80 STOCK EXCHANGE COMMODITY OF NEW YORK EXCHANGES Beach — Rye, n. Y. • To T.L.Watson &Co. . . . 1832 established Active Dealers, Stock Markets Banks Brokers YORK 4, N. Y. TANADIAN DIRECT WIRES TO COMPANY bridgeport • perth amboy Iowa Southern CANADIAN On All Utilities Co. , ♦— Analysis DEPARTMENT Doxeuoji Securities MONTREAL AND TORONTO 6rporati071" Goodbody a Co. MEMBERS Dallas bank coast COMMON Executed Orders Industrial Bonds,, NEW coast to from Chase Manhattan YORK 5 Canadian Exchanges At Regular Rates Exchange BROADWAY offices Exchange BONDS & STOCKS SECURITIES Teletype NY 1-2270 50 34 BROADWAY, NEW Maintained and , Commission American Teletype: NY 1-708 CANADIAN Members New York Stock Exchange THE HARRIS, UPHAM & C° 120 Bond Dept. DEPARTMENT REQUEST Members New York Stock New York 6, N.Y. Net FIRST Bonds and Notes STUDY SAMPLE ARE NOW AVAILABLE j. r. wILLISTON & CO. ANO Agency PORTFOLIOS" on - Common Stocks Public Housing BOND BROAD ST., N.Y. Preferred and NEW ON ESTABLISHED \ 28 COPIES OF OUR „ BONDS Seaway BANK 30 page the "Syn23 and 26. —#— The St. Lawrence CHEMICAL BOND on and - Comments Available CORN only State, Municipal Securities telephone: and financial plan, % in —lb S. Government, • a Continued 37 plan ownership home payment; considering ail of these parts of after DEALERS Stale and financial provide for the amount of insurance that should as ISSUE—Candid Lake a our carried, the amount of savings to be accumulated as an An¬ only to second should not Continued Echo for of none investment is only for the illustrated cent been many arguments such director need investment programs. The against the principle of the Guaranteed Wage, no investments; that entitled the burden placed upon manage¬ ment, which could force it out of business, the shackling nual We have in that idea . move wraps : . have advanced merely to do such things as were entrusted to the Bank of England three-quarters of a century ago, Continued on page 18 PICTURES to theimmediate educational the employees make over $6,000 a year." He thus expressed the prevalent forward the needs of its people. The willingness courses investments, of "Oh! was, principle of the Guaranteed Annual •Wage is the recognition that a 'human being is not a machine, to : itself at due date, and tected its said •course capacities of the free enterprise system. A democracy only proves itself in a se¬ which would college degree. The author a answer • , educational asked what he taught, and when was he writers first of large army installation. being prepared for were lead to "evidence of the health and primarily financial in nature dealing with a ries of college bargaining process the industry the < which Plans and dynamics in London for the reason that London was essen¬ of the democratic process, evidence of a "faith by both management and tially the financial center of; the world, its busi„•labor in the expanding productive iness [paper of very short-term, and its institutions in constant ; and real need-of being [ as certain as plans. of this article is to partially answer two persistent ideas prevailing in the field of and cent discussion with the accepted its Much of the responsible press one. of investment investments, both among some leading textbook in the field and the population as a whole. The these ideas was illustrated in a re¬ j ; financial plan.- Gives three illus- every The purpose common responsibility to guarantee wage payments to workers involuntarily idle. The; settlement accepted is univer¬ sally recognized to be a moderate ; • of trations > - EMANUEL CELLER The automobile industry in principle has - Old ♦ * U. S. Congressman from New York - in essential part herewith, others will be given subsequently.—ED. HON. investment program an early in life and that stock investments should be an issue conversations. All this is individual in planning for the future, dis¬ investment principles and financial planning. Says there is wisdom in starting ning with that of June 2. Some of those now in hand ap¬ pear rich and aged, but concerns restricted solely to the cusses of Frank Rising's article "Guaranteed Annual Wage: Blue Sky and Brass Tacks." Communica¬ tions on the subject have appeared in each issue begin¬ 26 May these, and how seriously they are discussed among a wide variety of business men. +It is perhaps less remarkable how frequently the ^experience of 1953 is cited in the course of such questions response the Guaranteed Annual Wage philosophy inherent in the contracts recently negotiated by the auto workers union. The-invitation was extended coincident with the publication in the \ it limit the can almost every of the letters received in more some not make provision in this to its invitation for comment on Finance Facer, pointing out that investment these days is Prof. reproduced below. are The ."Chronicle'! is pleased to action sufficiently vigor¬ of a Latest of and University of Utah consequences such doctrine. any of Banking Professor , , going Copy a Guaranteed Annual Wage A Life Estate in Investments What is the "Fed" planning to do in the next few weeks Opinions Cents Price 40 7, N. Y, Thursday, June 30, 1955 115 NEW BROADWAY NEW YORK YORK 1 STOCK NORTH LA EXCHANGE 40 Exchange Place, Teletype NY 1-702-3 WHltehall 4-8161 request * IRA HAUPT & CO. Members ,! New York Stock Exchange and other Principal Exchanges 111 Boston • Broadway, N. Y. 6 WOrth 4-6000 SALLE ST. CHICAGO New York b, N.Y. upon Teletype NY 1-2708 Telephone: Enterpi ise 1820 2 The Commercial and. Financial Chronicle (2986) ' V. . . Thursday, June 39/1955 i • /AM ■V& v , The , Security I Like Best Dealers only For Banks, Brokers, This Forum A continuous forum in which, each week, a different group of experts in the investment and advisory field from all sections of the country Bank ani Insurance participate and give their Stocks reasons for favoring (The articles contained in this forum they to be regarded, are offer as an to particular security. a intended Anaconda Industrial The Anaconda Investment Securities Public Utilities Anaconda Company (formerly Anaconda Copper Co.) i New York Hanseatic the status Corporation stock. \ busy Private New York 5 activities the in share Rights & Scrip Stock ton Exchange Stock Exchange 120 BROADWAY, TEL. - magazine deposit reports in like this Sheraton estimated 1953 Camp Manufacturing Commonwealth Natural Gas Dan River Mills just This Life Insurance Co. of Va. the Lynchburg, Va. TWX LY 77 I due to factors favorable now in such making, normal brass mill operations recov¬ expanded basis, reaping ume, ery on an of benefits from tent cent of passage Chilean giving better foreign pro¬ legislature treatment to qnd the re¬ by the bill a major In the above, announced discovery company NORTH and SOUTH the to new ore body at its Butte, Mont., properties that may prove to be a MUNICIPAL BONDS major low-grade share 1955 since copper in in output is higher and better. RICHMOND, VIRGINIA prices earnings RH 83 & 84 Telephone 3-9137 could are under also of the reach $1.50 to earnings improve could $2.50 Chilean new $2.50 and setup earn¬ ings from aluminum should bring in another $1 annually beginning the latter part of the year. From this, the main phases of the busi¬ H. Hentz & Co. Members Stock lower a earning than Due Exchange to Stock Exchange Uranium New Cotton Exchange is Commodity Chicago Exchange, Board of New Orleans Cotton and other Inc. not the run we exchanges as do the current leading classified operations, available ores. Trade Exchange other of pro¬ ducers. American York multiple on Varied high as know value estimates of of have million but $300 that nature information the their holdings immensely valuable, dwarfing anything found in this country to are 14. Y. Cotton NEW Chicago Miami Exchange Bldg. YORK • Detroit Beach Hollywood, Fia. Geneva, • N. Y. Pittsburgh Coral • • 4, Beverly Gables Hills, Switzerland Amesterdam, Holland Cal. date. —* However, it is not amiss project earnings of at least $1 share tion is in 1956 when full obtained from stone mill at capacity of to per produc¬ their lime¬ Grants, New Mexico, is being dou¬ which bled this year. Members New York Stock . Exchange Exchange level 1946 of mod¬ erately below $2.50 in 1 9 5 4 f American Stock 19 Rector St., New York 6, N. Y. of age privately for their hotel corporated market from to them Some consideration. have owners their put properties that now double is in^ is there wires to of year the Still others are they run have sale branch our offices the to tax a JAPANESE liability if and when liquidation of a corporation occurs within one NY 1-1557 relief Only subject . l^ew Orleans, La. - Birmingham, Ala. if Mobile, Ala. Direct the on taxation. HAnover 2-0700 hotel owned being offered properties of SECURITIES assets. have unusual appeal may eager to sell when to investors with vision— of available investors with knowledge out depreciation. of Japanese which approximately Call upgrading their "hotel portfolio." They buying first class are potential. attractive less Only ones. raton management Securities Co., Ltd. under undertake This construction. the is Established 1897 , Home Office Tokyo—70 new in case 111 Broadway,*. Y.6 COrtlandtT-56S0 NATIONAL BANK The chain motel prove to be a "Highway Inn." might valuable addition Sheraton's to of INDIA. LIMITED basic operation. With the chain ler Bankers the Office: West suit, Hilton Hotels has been receiving more publicity than Sheraton during the last several End 13, to of some the important differences between these two leading chains. For one thing, Sheraton goes in almost ex¬ clusively for the ownership of in Uganda Bishopsgate, E. C. 2. (London) Branch: St. James's Square, S. W. 1. in India, Pakistan, Ceylon, Burma, Aden, Kenya, Tanganyika, Uganda, Zanzibar, and Somaliland should Sheraton for the investor blind not and Branches This comoarative lack of "limelight" Government 26 London, trust months. the Colony Head anti¬ recent to Kenya purchase of the Statand Branches Brokers & Investment Bankers Tarrytown, New York, where the company is venturing into the motel business with a luxury business write or Yamaichi prop¬ erties and confining their sales to V Authorized Protectorate. Capital___„£4|562,SOO ' Paid-Up Capital Reserve Fund__ The £2,851,562 £3,104,687.. Bank conducts every description banking and Trusteeships also exchange and of business. Executorships - undertaken 50% repre¬ properties while Hilton-controlled capital gains from the sale real estate is often held on a lease This sharp improve¬ basis. As a conseouence of this ment has occurred during a pe¬ difference in policy, Sheraton riod of declining occupancy (93% with moderately smaller gross in 1946 to todays rkte of 75%). revenues^ throws off about twice In order to achieve such earn¬ as much cash through deprecia¬ ing power, Sheraton management tion as Hilton. Additionally, She¬ capitalized on the advantages and raton's first mortgages are only economies derived from a chain liens on specific properties and operation which are as follows: the parent company is not con¬ sented of property. (1) Central buying of products and services. (2) Employing full time staff specialists in food, maintenance and management. Setting practices. and (4) (5) on uniform standards is soliciting nation-wide a and still basis. risks. "recurring" as tremen¬ ton's Stock York forth by management's favorable circum¬ stances. (1) The Revenue Act of 1954 provides the same tax treatment which has been industries avail¬ that de¬ preciate times seven from around real upon of the improved credit status of the business. (3) improvement ex¬ being charged off in penses are full against current income dur¬ ing the fiscal year in which they were incurred. ordinary shows In income up later is in that manner, reduced the form and of long term capital gains when the rehabilitated property is sold. The tax advantages Sheraton has are obvious. found no short- value of (based valuations set of book values. $35.00 to $40.00 appraisal). true net ciation A price of share would per probably reflect the accurately more asset value, particu¬ the liberalized depre¬ permitted under the Reve¬ Act of 1954 makes hotels even "cash-throw-off" desirable buyer than has pre¬ viously been the case. holdings to a combination The substantial value, Many combined 35% dis¬ have occurred onlv at amounts in more result is share excess (2) Long term purchase money mortgages are now obtainable at hotel DIgby 4-2727 significant to note that sales nue the per estate larly since as a asset net $25.00 capital goods. The ad¬ vantages4 here is that liberal de¬ preciation allowance permit sub¬ rates 1954 earnings results and at It is reasonable Liquid currently trading at approximate¬ bination other — the on Exchange) count to Refined Exports—Imports—Futures income, (listed stock common ly able —- continue to build up and sell hotel properties. Shera¬ exceedingly profitable to buy, re¬ build and sell hotel properties. This is made possible by a com¬ hotels SUGAR Raw will pany plus factor in this new in¬ dustry. The chains have found it to STREET from capital gains, such came income New another dous of WALL NEW YORK 5, N. Y. a Although half of Sheraton's 1954 earnings 99 since it is apparent that the com¬ and Diversifying its geographi¬ interests cal on LAMBORN & CO., Inc. it is not unrealistic to regard Advertising business tingently liable for defaults specific mortgage. stantial cash flow. at York Anaconda would be selling ness, 1856 in per record to'a There Domestic 1954 CRAIGIE&CO. cop¬ in only 60c mine. per ■F. W.- pit open has mental Henry Warner Steiner, Rouse & Co. Members instru- n boosting earni n g s >from of a CAROLINA man¬ agement (3) addition pro¬ gressive ducers. VIRGINIA—WEST VIRGINIA (Page 2) & J. special circumstances would She¬ . and bee of expansion aluminum operations Since 1932 Specialists in and vol¬ Butte as, resuming Yerington Exchange relatively new chain hotel business among the nation's great i n d u stries. Compe¬ —o about come N. J. niche for the more." or about should several STRADER,TAYLOR & CO., Inc. New Stock performance of Sheraton Corporation has helped secure a at 1952 and covered the $3 dividend, 1955 and 1956 should bring a great improvement in earnings assuming present prices for copper and zinc would hold. Bassett Furniture Industries I Corporation of America the in found are >—Henry Warner, of Heller Meyer, East Orange, N. taking advantage of this large supply of offerings by The ties of capital growth. While earnings for American Furniture Establised York New of America Sheraton is WARNER Here, indeed, is a situation that should appeal to investors every¬ where especially investment trusts who could very well use this es¬ tablished company for nice cur¬ rent income with good possibili¬ Trading Interest In have best of all. one Mexico. New be to Reserves 5,000,000 tons NEW YORK 5 Bell System Teletype: companies that Anaconda's Jack- says S. U. ' REctor 2-7815 LD 39 day's the during price reservation AEC The , Uranium prosnects but on pile Mine is the first multimillion- Members York to $10 per $5 the "Biggest Uranium Mine in the U. S. is being developed by Ana¬ conda Copper on the Laguna In¬ dian American in F. Smart risen have other play. _ _ , in- "Time" ffipONNELL & CO. of Uranium Heller & Meyer, East Orange, trading. Since 1917. solid a Members public and stances string HENRY of some Uranium , optimistic the turn out biggest producer in the will Bought—Sold—Quoted Corporation stockholder receiving., attention New I are Specialists in S." the zoomed ium Principal Cities to Wires reserves Mine in It would naturally be¬ "Biggest stocks en¬ gaged in Uran¬ Teletype NY 1-40 ore and small very reported in "Time" maga¬ as Orleans, pretty Kennecott S. for com- panies WOrth 4-2300 stocks of Exchange with New times 1954 on a along with Ana¬ conda, currently selling at 73 on the New York Stock Exchange, trading days, Member Stock ap¬ Smart, Louisiana Securities (formerly Co.)—Law¬ (Page 2) Sheraton being although basis, line indeed if the I ; : In these 1920 premium Phelps Dodge, could be U. this" of in well come estment n v earnings the U. easily raise The released. zine, which could is to be arketwise m and American be cannot paid for the stock Something big has been added Anaconda Company (formerly Anaconda Copper Co.), which has not as yet been fully reflected Foreign Securities 120 Broadway, which praised accurately until more data to Associate Uranium their in of Copper F. rence potentials great lie interests New Orleans, La. Stocks and Bonds Established really Company Anaconda to La. LAWRENCE F. SMART Alabama & Their Selections be, nor sell the securities discussed.) not are Week's Participants and h^h of cash book America ration of for opportunity relative for 42 Years the enhance¬ National Quotation Bureau Incorporated liberal yield and as safetv Sheraton's in An excellent capital for well ideal the participation chain hotel business. as the stock of Sheraton Corno- vehicle ment Quotation Services and flow improved earnings has made common Over-the-counter may 4%% be found in Convertible De- bentures due March 1, 1967. Established 1913 46 Front Street CHICAGO New York 4, N. Y. SAN FRANCISCO yolume 181 Number 5442 .. The Commercial and Financial Chronicle . l —Keith capital to reach levels economic projected for new 1965, ■ a broader share-ownership by the public. Finds many corporations add to their debt merely because of a restricted market for. their stock issues.', Says broadening of the-base of ownership in equities will be < 4 ' slow process and must a of investors. V hand-in-hand with the education ■' ; stock ownership is long-range. It can be pursued only as quickly as a vast pro:■ gram of public We, know, that venture ;; education will there such and "s peed" - > ■ are almost " be Charles thing, has V histor¬ will dry to gain their full economy's growth own¬ ings of going to be fall into the trap of a painstaking li. informed from Keith hunatiiit the or stocks, and represent¬ ing ownership of our great enter¬ prises. We will require, in the common pext decade, more new equity than during any comparable peri¬ in od our history. In this money drawing can on my opinion, best be raised by the accumulated ings of millions of in return wards, are able to take the It is neces¬ risks. investment sary people who, anticipated re¬ our the for sav¬ perfectly true that indus¬ The mitted healthier and ownership question whether the financing trend of the healthiest last decade could that was have the been is ought to their exercise America We 7V2 are million their right—in self-interest—to own own public companies. Certainly financially able nonshareowners, particularly those in the higher income groups, are not enjoying the full benefits our our millions of provide. economy can a World apparent War II the that end the at of their financial health. We know that many ferred to firms would have pre¬ avoid additional high fixed costs if they had felt market levels were high enough to rant issuing the ownership broad new enough war¬ equities, and if base to been had these absorb issues. ence, Direct Further Opinions _____ Locomotives H. Forman 18 18 Corpus Christi Refining Cto. Long Way Off, Craton 19 Gulf Coast Leaseholds . Nathan Is From Within! (Boxed) Service Improving billions As We See It Business by industry exceeded any¬ in our peace-time experi¬ Where to was the equity from? Patterns of come changed wealthy themselves able . new . and the . were no long¬ to provide equity in the our economy required. Fifty-five years ago, for example, magnitude the Tuck School. We here to¬ are day, largely because of his vision, and because changing times have meet like men our The him Leveling Off^___ 36 the realize from which new almost were whether to or exchange com¬ that the sources capital was raised important as as not capital could be raised. In ^ Electric Steam performance a Continued that on We than (Editorial)-. Man's 22 Bookshelf 250 over-the-counter aston- Coming Events in the Investment Field British S. Investors Potent a 20 & 8 Dealer-Broker Investment Recommendations Einzig: "U. Force in 8 Rising Trend HA 2-0270 40 Exchange PI., N. Y. Teletype NY 1-1825 & NY 1-1826 of Equities" 17 From Washington Ahead of the News—Carlisle Bargeron Indications of Current Business Activity Direct Wires 11 specialized in f D D f [| CTflP|(0 IllLrLllllLU 0 I UOfYO News 8 — About Philadelphia.. Chicago.. Los Angeles 45 NSTA Notes Banks and Bankers Over 14 Wilfred May 4 Our Reporter Governments 33 Reporter's Report Public on Securities Now in Registration Salesman's The Market . . . We and are now recommending State OF AMERICA 31 You—By Wallace Streete The 16 2 of Trade and Industry which 5 be to 48 1 Drapers' Gardens, London, land, c/o Edwards & Smith. Members New York Stock Exchange 25 BROAD TELEPHONE HAnover 24300 Albany • Nashville Boston • WILLIAM Reentered COMPANY, Publlihere in one our opinion promises of the TELETYPE N. Y. 1-5 • • Chicago Schenectady • • Glens Worcester SEIBERT, Falls 30, President Other Pan-American Other issue) Offices: 135 South La $1.75 Phone Union, $55.00 of Canada, Countries, $62.00 Salle St., (Telephone STate 2-0013) J per $58.00 year; and Quotation per account eign McCOY & WILLARD Investment Securities 30 FEDERAL ST., BOSTON — Monthly, of the fluctuations the rats of ekchange, neu) year. $37.00 per year. (Foreign postage extra.) Note—On for S. in per year. Record share write of Other Publications Bank or approximately per illustrated brochure Subscriptions In United States, U. Possessions, Territories and Members Thursday Chicago 3. 111. Current price second-class matter Febru¬ Dominion 1955 (general news and ad¬ am" -"try Monday 'com¬ plete statistical isb^_ market quotation records, corporation news, bank clearings, state and city news, etc.). Every vertising as richly reward¬ Colorado in the Plateau. Subscription Rates SEIBERT, Editor ft Publisher DANA Eng¬ ary 25, 1942,, at the post office at New York, N. Y., under the Act of March 8,1879. 2-9570 to 9570 Thursday, June C. Company Reg. U. S. Patent Office ST., NEW YORK 4, N. Y. E. Copyright 1955 by William B. Dana FINANCIAL CHRONICLE HERBERT D. now URANIUM CURPORATION 38 Washington and You REctor recom¬ 43 :__ Corner Security I Like Best WILLIAM B. DANA we Corporation 16 Prospective Security Offerings Securities ago Stylon stock at 751 per share. It is selling around $4. 19 Securities Railroad year 47 Securities Utility a mended Observations—A. 25 Park Place, New York 7, N. Yi Spencer Trask & Co. to 34 Funds Mutual Published Twice Weekly D D C C more securities Singer, Bean mackie, Inc. 48 The COMMERCIAL and have Sterilizing trading markets in Cover Stocks Insurance and The page maintain ing producers For many years we I Factors Standard Uranium 46 Our able total of these observa¬ made munity less continuing needs. sum tions address bySEMr. Funston at the Dartmouth-Tuck Business Confer¬ Hanover, N. H., June 23, 1955. j Foreign Dollar Bonds, on Regular Features thing left ■' Standard 27 Purchasing Agents Find Business Uptrend ■. Straus-Duparquel J ■K:". Ralph T. Reed Advocates "Point V" to Replace Foreign Aid__ 21 Debt office in City 12 Fulbright Bill Pertaining to Unlisted Companies Opposed by Commerce and Industry Association of New York 20 Peace Lake Cover _ (Boxed) to branch to Salt Healthy, Says Shelby Cullom Davis According Teletype: NY 1-4643 wire the Guaranteed Annual Wage on (Letters to Editor) Boom Still Bank er Broadway, New York 4 7 DIgby 4-4970 needed ♦An First 42 Canadian Business Outlook on C., Ashforth of implications of heavy reli¬ debt. Examples spring to a man with considerable vision of companies which are named Edward Tuck made a gift presently overloaded with fixed of $300,000 in securities to found detriment —A. Members Salt Lake City Stock Exch. 6 ___. According to Dean Collins-Marcus Nadler Survey. on to the Observations exchange first voiced the broadening ownership as long-range policy goal when it mind obligation Coyne of money debt E. The wealth had ance J. F. REILLY & CO. 5 Nuclear-Powered than more the future, will not spell trouble. term Harris a nation of 165 million people, a surely ence. believes it will. We are very much concerned and somewhat alarmed by the long- E. com¬ that broadened. Walter of In followed, and to wonder whether pattern, if carried over into exchange —Hon. Canada's Economy Typical! this The 4 Role of Debt Management in velop for the world to marvel at. became prudent however 3 Dominican Republic Inaugurates First Display for Trade Fair securities. is is vital more Uranium Securities of the Investment Major Trends in Canada's Economic Growth concept ; of today's C(Chronicle" devoted also convinced that in the process a new kind of capitalism will de¬ idea to sys¬ will emerge as the base of share- try's marvelous post-war growth has been accomplished by relying heavily on the issuance of debt It exchange the to ; Oil, Mining & C.anada Set to Resume Growth Trend—N. D. Young great horrors. stock Specialists in 15 Atomic Power Needed to Meet Canada's Energy Needs—O. B. Falls, Jr somehow one 13 ___ lieu, Murray Bay, Quebec, includes the follow¬ ing articles: W-v-- 4;;V' ■' NYSE Committed to Concept of Broader Ownership also fundamental, though pot so widely appreciated, that the .country needs a continuing flow of equity capital — that is, capital supplied by the issuance world's 4-6551 11 *.____ Dealers' Association of Canada at Manoir Riche¬ And if they believing that is STREET, NEW YORK Telephone: WHitehall 10 to the 39th Annual Convention —J. ~ of SECTION TWO the economic our WALL More Articles in Section Two they tend philosophy that today is a pot. is of I ___ 99 4 Special Situations in Mutual Funds H. Slaytoh V\ —Hilton tem, they will be much riper for people, whether they are shareowners It . democracy divorced of all, we need a n system. our political First process. ' . Rich Obsolete Securities Dept. 9 Construction Loans -Associations—Robert Van Cleave_____ The Use of to become indifferent to the work¬ ership base is . V nation's share . and ★ Flow of Savings Into Mortgages—Kilgore Macfarlane, Jr.____ 12 Government Securities as Liquidity Assets of Savings also. up B. capital. If the up, Mortgage f Foreign Investments—Roger W. Babson another venture dry in ★ 7 __ Banks' Role V OBSOLETE! 5 The Dynamism of Tradition—W. Randolph Burgess__ know, finally, that if our fail to translate savings directly into ownership, they fail mutu- the be Shull 2 We broaden¬ ing G. CAREFULLY! And you won't 4 ★ people ally exclusive, and must funds vitality are words that for DRIVE Financial and Non-Financial Ebbott .Automation for the Nation—Ira U. Cobleigh capital ically been the spring from which our economy is fed. If free enter¬ prise is to survive, there must be enterprise; to finance enterprise' 'permit; ''Ed¬ ucation" J. —Frederick v. efforts • a./At the outset it should be per¬ fectly clear that the goal of broad¬ er " in Banking: —Percy v go Explains New York Stock Exchange in the dissemination of corporate information. - 3 History of the American Dollar: 1792 to 1955 . - , : HAPPY 4th! ■- Funston Incentives Mr. Funston points out this will require ■ Cover u. Corporate Capital Needs Between Now and 1965 . Predicting U. S. corporations will need $375 billion of Life Estate in Investments a —Elden J. Facer By KEITH FUNSTON* Page AMD COMPANY Opportunities for Building President of the New York Stock Exchange liCHTfnsTfin" »■ Articles and News Between Now and 1965 >f 3 INDEX Corporate Capital Needs ; (2987) A. In remittances for for¬ subscriptions and advertisements must be made In New York fundi. T. & T. Teletype— Boston Private Phone to New 128 York City REctor 2-4208 j 4 The Commercial and Financial Chronicle (2988) ing business—together with Incentives in BankingFinancial and Non-Financial (2) A of end two are of incentives—financial New York bank executive says, banks have been giving serious study to make training (3) Lists needing consideration: (1) a more realistic retirement which thinking about a subject might be of interest. T de¬ cided to great motivating talk about forces life, in Banks salary all to what than rather in¬ cide.-; a uncertainties the Board current any rectors or pro¬ Di¬ of training program is prob¬ laws; the old story of procedures our We same. corporate fore think carrot the key don- or the mechanical is it takes and always leading the whippet in the certified dog Most individuals an urge lot. businesses there Incentive nancial. financial — banks have forward banking It has more a been Incentive make institutions Smaller have in cloth and the and the is, in fact, little very large bank country bank, a so-called except totals in the balance sheet and off the bank last has *An three can address waukee, seen in a ciphers in our among our billion a dollars him June Association, 21, Mil¬ 1955. •; one year pur as a to state Our his clerks own the man a prefer¬ own who have v With worked ourselves successfully established an This importance respected the at man is and segment Retirement The the destined citizen but to be in seat first and and rule his market,as advance of now bank he soon items the of the larger number a of scope, the men theory, as¬ con¬ industry banks are adopting a retirement in * both the each it as of service. In year plan IV^% gen¬ may count can 40 to A is on new arrangement and the appeal of the bank¬ Continued * "UNFAVORABLE" FACTORS Peace prospects; with the tendency to emphasize the re¬ - that moval of the support activity. of prospects re¬ development whereby page a 22 * Cold fear, controls and $ $ Rise in War's billion record-high of $10% a this year). still $ earnings yields. (The Dow Jones Indus¬ dividend and are now selling at 13 earnings, against 21 times 1946, 18 times in 1937, and Possibility term that rise the wide sufficiently reflected * with production stocks. of steel, and building re¬ maining at record levels. Esti¬ construction $42 billion almost at * * Growth aspects in new fields, atomic energy. boom's perity. generally business of and present Permanent been the pros¬ politically- Since some the April decline in building starts and permits. (In linewitnwidespread of second-half a sharp decline in automobile pro¬ duction, June dealers' sales, while * Administration to * residential off continuance * slackening in mainstays. there has last * of expectations this year. * Signs ac¬ motors, An discounting price cf many the * high rate of business favorable near- justify to advance in * as over earnings and dividends will not 1929.) * mated on * A tendency toward propitless prosperity outside the big com¬ panies. advanta¬ geous in emphasis and taxation. * * available 19 times in ; . . continuance,, with * corporate profits and dividends (with the latter slated to attain * Alternatively, prospects of the general # of defense "'■■7'-' :jv 7 * * continuance,with spending benefits. * on THE defense of 65. relatively an the a May "bull" the Cold War's approximately 50% of final salary at tirement age the • tivity; factor such A. Wilfred of the some FACTORS— Alternatively, The a In eventuates. EXPLANATIONS the psychological feeling "peace is always bullish." aver¬ on be said that career individuals retiring under such a (1) A training program to teach younger in the "explanations", for • times eral consideration: ready trials for needed areas more on and of movements Increased' peace prospects; with the tendency to emphasize and tiplied by faced up to a study of their per¬ sonnel problems. They realized that com¬ age of banks obstructing timing contained are OR the salary for the last five to ten years of service and mul¬ realized *""" whole; and (2) Indicate in a "FAVORABLE" pen¬ retires plan which is based after the end of the Second World most retirement become now gradually of pic¬ " - and "bear" columns; while others carry the prospect of subsequent contradictory interpretation to fit the preeeding market behavior. 7 7 ' a One ditions banking: "You do not take home samples." Approximately 10 years ago War, has serve fact, it will be noted that The sion thin current provide a forecast. to (1) Cite the im¬ whatever market action Compensation of to prediction of future previously determined officially approved. To meet sured. a many trousers matter pensation his sleeves became shiny at elbows the young — appropriate at this mid¬ seems other/ policy. a — about summarize the fa¬ we not It will rather training and is ponderabilities benefit of specialized large banks, this general plan has better it qualms a ad¬ an particular job, giving the group. standing in the community, social position. He was a man and by Mr. Ebbott before the Bankers Wis., leave be understood. None of even Wisconsin We daily statements circulated are officers services. that the so which us of scope roughly candidates for the annual considered lucky to get a job bank. He was told that it gave was cases, between should find f-' '• ■ college training are eligible \ to join these training classes and supervisors are asked to suggest incen¬ money days gone by bank must have, their problem is identical with that of the larger difference financial than we ■'»/V- 7 * In of There is, v'' ' year not had designation. not community, and attract and retain the high type of personnel which any well run banks. review levels, Accordingly, various ences. I than the "fringe." They are approximately 40% of the table¬ been subject to the same pressures but to maintain their vitality, standing other First, more < is chance banks these benefits have become career. demanded. to '' general clerk, followed by a and salary itself. are still designated as "fringe" benefits but in the city of case track Incentives. like '7*' of rotating training departments of the bank, and ultimate assignment to preamble, let main '' Thea program of training in bank a earnings and 7. can Training Program a has These offering an program before it was a the incentives—that tives say,-have steps, to attractive to about would size, the been giving serious study and, I may taken of Because of their larger return 7•' ditional So with this brief me talk non-fi¬ and and Money Incentive in other two types are stabilized '7' in bank¬ In as sheet management. their ing balance truthfully state their wage scales are equal to cor¬ responding jobs in industry for like responsibilities. $1,000 corporation which presents a to im- p r ove Ebbott to job evalua¬ generally geared so that banks $1,000,000 with born are than to lend unsecured increases, and are most "know- individual an tions difficult more banking more record-of race. much how" to lend bbit ra J. merit funds and the dangling be¬ Percy in the matter of initial compensation. Beginning salaries, savings of the peo¬ ple and loan them for the benefit of the whole community. I often the have been forced to raise their sights basically are in take Subsequent Use widespread ture with 12 elements for each. the ers small operate market the - categories mentioned. To compete with industry which commercial banking serves, bank¬ means. of vorable and unfavorable sides of the ably the most important element state and national same : y<7\"«.• 7 view year period to anticipate our customary year-end citation of both the principal bull and bear arguments. of management might de¬ <• The comprehend can large and under the tive. is the us precisely what it namely, Incen¬ It of few and the of one Offered for In stock in In THE MARKET "INFLUENCES" AT MID-YEAR 7 ject • By A. WILFRED MAY Consideration of a formal assure the employee of a on • com¬ formal and irregular bonuses sub¬ a Holds leading non-financial incentive is "to become greater boss in the bank than your predecessor." gram. plan, hospitalization benefits. based program; formal profit-sharing a insurance participation in the bank's profits a more areas (2) program; banking as insurance plan; and (4) an lifetime of active service. An (4) because of their size, the large career. • at the plan to and non-financial, prominent attractive the bined with accident and disability in other businesses there as when on assuring security a (3) Board of Directors and types wither realistic retirement more program The Chase Manhattan Bank Asserling that in banking not vine. By PERCY J. EBBOTT* Vice-Chairman, tv will Thursday, June 30, 1955 . . a pro¬ to see that those men gram trained . Any in still appreciably above year, began a slackeningfrofn the previous month.) continued these two marked decline industries would, felt in steel. of course, be * * * guaranteed intervention. * Current * *■ ued High We are pleased to announce the formation of MEMBERS Inflation. * Built-in and pro¬ YORK STOCK relative exempt through EXCHANGE a foreign * New York TELEPHONE: 7, Avenue N. Y. WHITEHALL 3-7630 income attractiveness of tax-^ PARIS-8C TELEPHONE: securities. if BALZAC aid * con¬ programs. * current « conservative via accelerated depreciation and other generous write-offs. The mere * 7 $ fact of - a long bull market ("Of break was 6-year course a over-due"). * if s •* * areas, as in uranium issues. * calculation of reported earnings; 61-68 * Dangerous potentialities from obviously wild speculative George V The 6, dividend on s Increasing exports; and tinued Broadway income. * reducing the stockholders' takehome pay, and supporting the the further farm * : * 39 Inroads possibly contin¬ from the individual income tax, agreements for wage rises and benefits. gressing , * current trend of NEW * million * OSliORNK «fc TlIUKI.OW decline in employment (less than unemployed), and record consumer spending (5 to 10% above last year). 1% and * a Reiteration of "New Era" foi¬ PARTNERS Selectivity of the market's strength, with advances in the Chips kept in moder¬ ASSOCIATES non-Blue H. Thomas Osborne Lennart J. Gran Bradbury K. Thurlow Gottfried Von Meyern-Hohenberg Oliver Henri H. Everett De La Tour D'Auvergne Charles H. Cunningham bles— as - if ation. Henry Mac N. Jones * Possible * a speculative psychol¬ in the market place, with skepticism rampant, in lieu of ogy Harold Nelkin the customary unbridled 1ST. Administration fVjmpnd stocks. f°r of or change of antMnflation policies by lame-duck President. * ness reservoir if * * Over-weighting the effective¬ 1955 The the bull market enthusiasm. july if post-1956 f Healthy Edward Le Maire overemphasizing scarcity value of "good" stocks. of institutional holdings. Mutual institutional "good" common run fund-holders during market. a may protracted yet bear .. _ * Volume 181 Number 5442 The Commercial and Financial Chronicle ... (2989) Steel The History Production Electric Output Carloadings Commodity Price Index Food Auto and Industry Price Production Chairman, Connecticut Gold Standard League New Haven, Conn. Business Failures J A slight advance was noted in total industrial production for the nation in the period ended on Wednesday of last week. paredV with it year ago, the similar later < week a Omthe other hand, latest weekly reports'on employment^reveal that for the both initial i for time first and since January, continued unemployment benefits and claims insurance higher than in the preceding week. ;'Y were productivity efficient equipment ; Steel companies will step from frying pan into the fire once they dispose of steel labor, con¬ tinues this trade authority. The the ominous silence from the camp of John L. Lewis has them worried about he Initial their can 60 mine coal his reopen costs since contracts days' notice. on ; lessened chances of bringing steel deliveries into line with promises. tinued They claims in tne 41% Hinder those of Declines in higher week, a but year ago. -textiles, ' apparel, equipment and transportation ordnance 1% were previous contributed to slightly increased unemployment. The of United Labor decreases reports in new unemploy¬ ; the nation. across Idle Department currently seasonal ment States workers' first Meanwhile, have for hit In the automotive vehicle curity said. Some ported decreases which reflect 31 in states layoffs. re¬ claims new A year A or Cana¬ rolled off assembly line on Friday, last. "Ward s Automotive Reports," some • car combined United and truck production week States the past at 185,490, or 12% better the previous week's strike165,402 units. passage admonishes: "•* "Hold fast to that which is good." car output at 154,169 which is 11% than better the June 13-18 tally of 139,708 vehicles. A near-record tap, being 22% total considerably relieved of production came back strongly with United States car and truck building alone up some 20,000 units over the prior week's strike-infested work period. this labor week. stantial" hoped gets will It its be than for, producers union but less "sub¬ leaders had than more wanted raise pay to steel give. Steel will begin paying higher prices' soon, "The Iron Age," national metalworking consumers weekly, states this week. Before the settlement is reached thing pounding if holds firm cents was the hour, with cated to would 13 and about get 15 3.5 cents increases cover per allo¬ in the prices will be upped an those the finance sion more for need another more round that for This Motors Meantime Plymouth output was Reserve Notes reads: Note Is Legal Tender for Debts, Public and Private, and all a^V'u T^m-? the United At at Any value/ nor absorption by unusual, basic absorption may time. t0 make stand sure the that Federal Reserve we chips are game all under- the another—a form of that is alleged "re¬ enough to Adam Smith and Alexander cause to turn Now, I have bank at 20-dollar in over firm of the Bank than their CHARLES interest, than to have a gold piece in my bureau were the suit, tended f0r for needed of surplus to drift back redemotion the normal in those to gold. tbe , would States car-truck to announce that charge of trading the removal of our address. or 4,755,054, 38% better than the company's 1954 span of 3,435,292 units. enjoyed a Cars impressive 43% an 4,131,535 units to 2,888,721 year ago, while truck con¬ struction is as 14% up against to volume 546,571 623,519 of permits units building in con¬ continued to Therefore, when the Gold bound on page 35 that the firm name - of " world's ^ back go we Standard as — we on than known one-half stock of basis of not occupied since which it does not has today; Honesty-^-a of and basis a until of in of the 4, YORK N. Y. a it as a a British no hope of date for more im¬ field of the that a at an monetary system of as the result of tion starting from the historic gold standard." LEPOW SECURITIES CORP. DEALERS 42 • UNDERWRITERS • BROKERS Broadway, New York 4, N. Y. BOwIing Green 9-0350 early world a as monetary the a will be known as be little or can progress the LEPGW COMPANY eminent, economists scientific July 1, 1955 Com¬ whole should achieve and Effective th^ Gold Standard. system. But there I STREET" NEW honest financiers, and known world NEWARK 2; N. J. BROAD occupy will Currency has to 1931, 14 1933; which our restored sound Municipal and Revenue Authority Bonds and Corporate Securities 30 the which basis is, perhaps, no portant object in the human technique than Underwriters and Dealers in INCORPORATED Underwriters, Wholesale Distributors and Dealers of Corporate Securities gold. My it "There Rippel & Co. Telephone Number is BOvvling Green 9-0292 JOHN R. BOLAND & CO. are the "Macmillan Committee," rendered a report in which they included this significant statement: : Our New one and only objective is to see the American Dollar restored to a and f JULIUS A. RIPPEL, INC. changed to same do—I to more —or mittee / that anticipate no raid on the Treasury's huge stock of gold, which, incidentally, amounts to about 22,000 tons avoirdupois basis Continued hold view. building through the past week will total people whole, except as process of evolu¬ MONROE E. LEPOW, President GEORGE „ Continued on page 64 to announce same bank would pull down the bank's supolv of gold. And Adam offices to larger quarters, Forty-third floor, at the interest," and I am majority notes This, of O'BRIEN MURPHY III also tuish of cource, has been elected Vice President in We He conduct of business; that, as a re- anv pleased are be- having, at times, issued greater quantity of bank notes personal desire no of •Back case a as That is nothing more We as that Standard. Gold the that the great The 744 BROAD STREET was and dealer relations. foundation has been a ctlan8ad 10r any privilege of ex¬ piece of paper for one 1 In itself, Note, may d e doubtful deemability" been v d hp gives amole anfi that'he in England those changed for t . e a r e authoritative MnnPV. the c,tes those start , * kidence definite values— given given game. can r a siznumber of pages to the sub- b, . principles for keeping a monetary system honest, let me illustrate them in this way: In the common the five-foot tbe "Harvard as is "lawful money." The legend on that note, therefore, merely gives drawer at "no firms. announce at torUAg^ymdSmUh dtvo'es liever Before "lawful money" back in 1933. But not occupy We even therefore, v>P thorouehlv 1 importance; of whlctl may n°l the 1 f It nrnnprlv game of poker the chips are the circulating currency of the game, This poses the question: What is convinced Friday, last, due to a walk¬ body division. The industry publication re¬ ported that combined United struction offset Classics». tions for the greater part of that "lawful money"? It can't be gold; /. because gold was withdrawn as at the 1954. be them Eliot's Dr. helf and known they for in cluded unreasonable in nor principles; Money Treasury, or Reserve on units steel also but Dollar), redeem to greatly published the year 1776. It is th ■ j book on Economics in- have been recognized by the lead- Bank. m States Federal lost to require a realistic hike in But not enough to avoid ; monetary principle— fine-print legend on cur- the one lead of prices. some "fixed is , honest changing week. that at Gold-th,at be have ,ot two centuries; and they If. «'ard been were to practiced by those na- . maintained "as good as gold." But we have failed to 'hold fast" to hold the line the past expan¬ monev of their notes paper The company burst through 50,000-unit level in the pre¬ ceding week and was slated to the units than $6 on Increased wage costs items. Fed- This rate. alone perhaps American refused question, "Se£S NOterS ,7re|Ht0i be inS;a»T °£ thf WOrId f°r above last week's Sparking the upturn was Ford Motor Co., whose current car building is at an all-time record to and on Thus, strikes, average of S4.50 per ton, with products being increased from $4 some 31,321 also is all out total a cents diiferentials between job classes, this trade magazine notes. $6, the 1 the gold-standard principle of "redeemability," 01 demand.;. There is nothing new, those that a negotia¬ to the Thurs¬ wage Steel was simulated plants. union between it to possess even one piece of gold; for I would far rather have $20 in the changed the "value of the chips" Standard graves. day night strike deadline, a peace¬ ful settlement is likely. It looked of Frederick G. Shull 1913 clearly Nevertheless, the corporation's car were up a strong 31% over the prior week when walkouts crippled over a third of its 119 though even b- a Hamilton tions should drag on like truck t e s i, parts shortages at various points. table- y V:'' But of Gold prompts and, that it lished back in slates adds, This currency Sys¬ When tem:. producer major one on than hour, this trade journal an volume of Federal Reserve its late offer of 12 l/z serious more Definition • According to "Ward's," General Corp., despite an improved labor situation, was hampered by differences could erupt into some¬ their , output of 25,894 units. pay Steel idly by, back in 1933, while political leaders not ojply sat "debauched" value. As respects their spiritual and "What is the Gold Standard?" The That is the greatest piece of "disreligious lives, people have done answer is very simple:, The Gold honesty" ever foisted upon the a pretty good ----- ... r..,. ......... ... Standard involves just' two basic American people; and before I job in observ¬ principles, / namely, "fixity of get through, I shall show how ing that great value" and "redeemability." Spe- that dishonest act has penalized principle; but cifically, a nation fixes the "value" the people to the tune of billions in thetf eco¬ of its monetary unit—such as the of dollars. First, let's examine, in nomic under; dollar, ; the pound, the franc—in chronological order, what leadtakingS' they i terms of a definite weight of gold, ing monetary authorities of: the have at. times which is the gold-standard prin- past, as well as present, have had f a il e d dis¬ Ciple of "fixity of value"; and to say on this subject of Sound mally. For ex¬ having done so, that nation must Money: /■■. ample, /take be willing to exchange gold for Adam -v Smith, 1776: Smith's the case of the tts paper money or other token «WeaUn 0f Nations" was first 1 The statistical agency estimated earlier first claims totaled 268,000. In the week ended June 11, the of workers drawing jobless dropped by 31,600 to 1,161,900. This compared with 1,984,iUO a year earlier. 130-million American people yet, (the Biblical happen to the banker of a poker game if he ever attempted to change the value of the chips, or refused to redeem them. And • industry the 1955 of hit turnout of 18, the depart¬ Employment Se¬ a castings, 5,000,000th United States dian week June with concludes "The Iron ■A—?."'' than ended mills tons of finished steel and unemployment compensation dropped by 3,300 to 190,400 in the ment's Bureau of the have freight program of 45,000 units, requiring some 1.2 million pegged claims railroads the new the - on . applications were 4% above!tne prior week, though 30% lowet than a year earner. Con¬ -than would sound money and the history day. Proposes a return of this nation to the Gold Standard, with the value of the dollar firmly fixed at $35 per fine ounce of gold, with the privilege of "redeemability" on demand, j Notes bills in Congress to restore U.:S. to the Gold Standard. increased more principle of "redeemability." Now, I need not remind you what of the American dollar from Adam Smith to the present production techniques, it de¬ Com-1 clares. about 10% higher. was by through Mr. Shull recounts the views gold-standard "values"; and that is nothing more nor less than the gold-standard By FREDERICK G. SHULL Index the principle of "fixity of value." And at any time during tne game, and at its conclusion, each player en¬ joys the privilege of excnangnig his chips at tneir assigned Dollar: 1792 to 1955 Trade Retail State of Trade than less nor of the American 5 NELSCN, Vice President incl. 2.85% 2.85 100 @100 Incorp ated 2.85 2.90 2.90 2.90 2.90 2.90 ® -85, 1976 1977 1978 1979 19S0 1981 1982 19S3 1981 1985 1956- A1,ug st $565,00 565,0 0 565,0 0 565.0 0 56,0 520,0 0 525.0 0 245,0 0 240, : 185,0 0 Due •■! - 2.45% 2.50 . 2.55 2.60 2.65 2.70 70 2.75 75 2 2 100 ® $19,870 M(PAYOTRIUNERIILCDDEESSS 1965 1967 196S 1969 1970 1971 1972 1973 1974 1975 690 1.40% 1.60 2.40 : 1956 1957 195S 1959 1960 1961 1962 1963 1964 1965 A1,ug st $812,00 Various 1.75 1.90 2.00 2.10 2.20 2.30 2.35 1955 Dated 820, 0 820, 0 825,0 0 750, 0 750,0 0 750, 0 750, 0 765,0 0 740, 0 Mes rs. iaintesrm-asul A1gpuyst)blt CTreoasuuntyY.Cboonupdsn $1oc,on0ver¬f bngdistser. EfFxreepodrmsmrpa?tilt ITnacox?es InBfSvaeosvtnimkrgns SNYtoearwek N. ifnutloy Princaipnadl 1and the denomiaton ruary AWNYtaoserhnbw<uy.ks,, RHT&aeoylyodrt,, ~ Nas au Is ue CGF&omlrgpae.n,yAd LM&Caureonkc.s bEImtpyFR&Cicehaolrd.s,BKug York (Feb¬thein and and ibsatpuuaaslrbeenfcornayidigjovednc,dvyift ECSoqerucpRLiD&tCaabtilsnoa.y IncKCorapnCasitheotdicyagf RGS&JAOo&CaobSvr&Cehneoorat.smtnnpy TCB&CISBH&TCorSnmBumaNrayTopsucov-ti-hartihnttsh.nue.gd,ekys F&aIrlWzezcbpdsnn FSM&CS&IPlcoDu&ohMsmeee.rilkcl.-Sp.kmyyf,th FId&rWECHuaHPnoctisst R&CTIoTrisFhnemvopeltasp:yy CLMC&HaB&LNy&ieoJSldwolebm.uhnr.r,,.nl, NBIoFTlbaIaTnmic-W.ps,nsyd * PyNCoeunwt , Buorpndses AMOUNTS, 2.80% New ade) inbteroes $685,0 690, 0 690, 0 690, 0 690, 0 000 690, 0 690, 0 690, 0 6 0, 0 (Ac rued Mineola, oofecif Stae Fiunds York New tible Interest Trust Legal owafehrsedn, Boaanbrodvese The ITNR&Ceynold.s Bationkl Corumpsatnyncorpated ICS&ntoocke.s, CTologe.r, 31905,. MBBaananhkntekrs EBxcahngke Corpatin Hig nso I.ee Square Frankli Co. M&ocC rmick Newark Co. Frankli Union P&ol ck NC&ewoharkd, YJuonrke, of Chase CCheomricnal The E&bsta ro k The E. Fidelity Wm. New .Volume!'181r Number 5442'.-.'-. The Commercial and Financial Chronicle civilian- business Automation lot the Nation fA (2991) 1954, Kidde Co., Allen B. Dumont Labmissiles, in- oratories, Eastern Industries and eluding the "Mighty Mouse" Navy U. S. Signal Corps. rocket,,.and other military items u New business management and :rockets -and . By IRA U. COBLEIGH output. In Alden Wells guided Plymouth Cordage delivered 70% of the gross. This capital were injected into Kurmap non-ordnance items, in- in August, 1953 and by Feb. 28, eluding magnetometers, airborne 1955 net earned surplus had scintillation detectors, aerial and .reached $140,000. While not a stereo cameras, and industrial test large company, K u r m a n has equipment (oscilloscopes, signal jproved its capacity to create and generators,^ digital voltmeters, produce superior electronic prodetc.) will assume greater impor- <ucts, and since it produces the Enterprise Economist BOSTON, year, i- Relaying j ideas about the sparkling future of magical some production systems started or stopped, slowed, sped or staggered, by wiry little electronic brains; plus some investor•; beamed notes about a few companies creating some of the ,j . , - 1 components of electromatics. When the first power loom took spinning away from peasants, plymg their manual skills in thatched cottages, that historic awesome - event me dustri'al we'll the to death. So you four excittoday. • Corporation, is entry Hazeltine old and renowned an name years dred years, every year except 1933. we've spent for major in- dustrial effort (in advanced countries) in largpr ever aDDhcationlof Ira u. task And of Laborans tending the machine, Robot now is 'to going do stock which common could have bought HZ at earmns^otenSal potential Kurman HZ back equipment and military. networks HZ patents and owns 1851 for the ventive fertile flowering of in¬ innovating brains; and and. many- were warfare. We by-products wanted blind S. foreign patents its horizon (700,000 common shares, sole capitalization). We wanted "on vented range less so planes we We We to defpnd invented radar beam grids, to communicate so wanted brought we wanted forth radio, walky- ^lirrnQn s sci^ibe Flonf_in Kurman from the see some We just fcover the talk official facts you why reasons the Prospects haven't field had others we'd Alden time there and have about —like liked Texas "" „ *" tion elect^nics telephones Ann; Kpaprin(J w^s He to 0f hone a a ^ • rnndnr „ Cordage " "i-i"V" aid* a ^j ^ Electric ,jm- barker a as Kurman Co y) incorpohas safaed ~'yide TePute for research, perfecorirl' nrnHnntiAn olootrn_ of tiqn, and production nf electro magnetic control devices that vices of automation^ remote or called are elevators, These control are every de- switches light-sensitive relays use(j ■ 8 to control systems missiles, r a d and a r Slfe 3Norden-Ketay in used ically. guided aircraft, , various purpose bonds, due July 1, 1956 to 1985, inclusive. to b.y automation and we're going to have great leisure due immunity from toil, we'd better start stepping up our supply of spending money. Well selected electronic- equities mav be the run The bonds 2.90%, according to maturity, answer, although reached the we stage Bank; The Glore, ton'' market profits! A. rrey Brice A. Frev if mmhant & pn a Privat^ in" Science ^nd SEn~ ^ dev^<Xr industrial has applications;»and the fahor lncreas® ^> ^e Pnce,^Vari-Ohm Corp. (majority owned) 'ThiiQ pnfprinty r^1 ^ potentiometers. out a full Thus we are now entering the line of duf course turn With five 2,000 plus turned different a wide types out of (Special to The Financial Chronicle) Oreg. PORTLAND, Palmer, Pollacchi Adds William — (Special assortment over wp nrp thp nnw age of Atom Power and Auto- matic Machines auguring far more production in total, and per man, accompanied the boons of by higher incomes, shorter hours and greater leisure and (if man can be improved as much as machines have been) perhaps a peaceful plants, 2 laboratories and 2500 Inc., 813 Southwest Alder. with j With this panoramic prelude a push button world, let what to us now cor¬ of our clever porate enterprises are turning out see some activate to begin to merely automation. cover to We them catalog all; the output of such leaders can't and electrical as General Manufacturing .current KANSAS alternating. to CITY, Mo. — . Frank (Special to The Financial Chronicle) . WORCESTER, Mass. L. — with H. L. Robbins & Co., Inc., £1 Pnar] Pe ctropt 1 S j . • Hycon Manufacturing Company (over the counter) is of interest because its common stock offered for subscription in 1952 at $1 now sells at 8%. Only eight years old, Hyeon of is doing around $12 a gross million insurance Stocks business and is " Electric, Westinghouse, Sylvania, gradually stepping up Our its ratio of annual comparative analysis of a group of the country's leading insurance companies is now available. For A copy Banks, Brokers, Dealers and Institutional Investors JVe COURTAULDS, Memorandum on will be sent to specialize in and offer you upon request. our facilities for purchase and sale of insurance company LTD. New York 5, N. Y. 14 Wall Street MODEL, ROLAND & STONE JIembers Aeu> 1 ork Stock 120 BROADWAY i Exchange NEW YORK the stocks. Blyth & Co., Inc. Request San Francisco Boston • Louisville Chicago • Springfield • • Detroit Sacramento • • Los Angeles Philadelphia • Minneapolis Fresno • San • Jose Seattle • Pittsburgh • • Spokane • Charles Curtis has become associate ! \ Co. Palmer,, Co., 84 State Street. world. Hycon G. .. * - Robert Joins Robbins Staff (Special to The Financial Chronicle) employees, Norden-Ketay is in Clients of Kurman include such. Hoyt Purcell, Jr. has joined the position~to expand and to justify distinguished names as Western staff of Lucas, Eisen & Waeckerle, the market glamor that has atElectric Radio Corporation of Inc.- members of the Midwest tached to its 1,191,025 shares of >-•*; n w c, V common, listed American Stock America> Collins Radio, Walter Stock Exchange. Exchange and selling currently 14%. — Lucas, Eisen Adds of .vi- a at Mass. connected become Pollacchi & Orators which change low voltage dJrect The Financial Chronicle) ; 'l Schmidt and Martin E. Tarr havo relays ,. to BOSTON, ' ( Bank; Lazarcl Co.; Salomon Bros, & Stone & Webster Secu- Inc.; and Dick & Merle-Smith. thG Staf± °f Zllk3> Smither & C° im- Co.; Chemical Co.; F. S. Moseley & Co.; Schoellkopf, Hutton & PomerGy, Zilka, Smither Adds and JeaVe 'em °n a11 day! c°n- Trust Co.; & long illness. sidiarv industry, & Vnrk- tmpw of 74 following to the land, „ searched for the military are now for & Hutzler; W. Laxton, Jr. has been added to jh^portantly,_by the offering partner in James dark> and there's nobody to forget adapted 1.40%;- to Exchange r orice Northern Forgan Corn Freres D from Blyth & Co., Inc.; Smith, Barney & Co.; Harris Trust and Savings but- . yield include: Bankers Trust Company; haven't yet of "push to Firms associated in the - 5ntl7 int? items for being offered at prices scaled to mTtic'devnicesmdeve^LldeSandU^I Nucleah are all age the savings over , be- of all ■ _ , taxpayers, . given here some useful ideas for to chew on. If our nation is lights'pop on only when it gets expanding . and are highway its is { { .. cities Corp.; A. C. Allyn & Co., Inc*' Lee Bigginson Corp.; EquitH; ullPnant & u°t'' iNeJ^ *0lK able Securities Corp.; R. L. Day City, passed away June 22 at the & Co.; Estabrook & Co.; Reynoldo turn Think Co., effective July 18. Offered tO litVeSlOfS you iu n i guway anu dicators, amplifiers and automatic street lights on and off automatin- become Plymouth Tke Chase Manhattan Bank and associates are offering $19,187,000 Nassau County, New York, 2.80% oil burners and guided missiles. In New York City, Kur■ to gains to the patient investor in the right company. We hope we've ditioners, . of nu There can.be no doubt that this relays. They can start sound burglar alarms, man Cabot NOSSOU CORIttV. N. Y. ' age of automation will usher in dramatic opportunities for capital control all sorts of machines and are vital to telephones, air con- Instrument servo motors, ' and Treasurer $19,187,000 Bonds of . a ■ Moors Assistant ,uul. a UI1K w,ux »ear,u8 ' the the T™,U^Ariav riSih and h! ' ^,blv ,bujH th™ fjrst loud Leaker iust to helD friend fa jgj ' h t usinPE sidewalk heard - about the famous, top-secret Norden Bomb taiY supplier of of in the Boston investment firm ner Instru- Wells R. to are luents, premier producer of silicon ------.-v r* Electric -^to^^^^muni^ was Corp., creating the finders, bombsights and finally Presenf company, Norden-Ketay rockets, guided missiles, and pilots •Corporation. Whiie mainly'a milidirection and • , phase Much Bight during the war. The company that produced it, Norden to hit far away enemy Laboratories Corp., was, in Febthe nose" so we in-C^nary, ^55, merged W1th Ketay targets and may many absol^gely basic in almost Norden-Ketay Corp. of navi- „ gation of ships, subs, and aircraft so we invented radar and myriad electronic navigational controls, in appears 0 ntr\hnUnn7"tT the the U 569 ■ A11 these wonders did not come. inn upon IK fllll Klnum !Thoir rDcuIto^i us full blown. They resulted n elec-fd' Monotone;one ouncehas just - which f A .5.! turned out a hearing - from Co. elecl produces highly specialized Ironic tronic gear, . including radar covering the fields of radio, television and controls through its subsidiary Hazeltine Research, duration and density; and if we In<=- From royalty revenue, manu"can't make up' our minds as to factoring profit, and the potential how to proceed, we have cyber-, of new items constantly being renetic machines to do our thinking searched, HZ common offers an for us. / ' eminent eiectricai equity, which . automation - Co., transistors; Sprague Electric, largwhose business started -out est manufacturer of resistors and ip 1928, Mr, Nathan Kurman, capacitors; Servomechanisms, Inc.; Inc and < itself' that, too. We have digital computers, electronic controls of everything from heat and humidity to . Electric ,T,:+u f patents owns t'he^future for tor the future. 50c elecZnic right of R. Alden — Wells is retinng as a general part" of ne,w Pr0(iLlcts in the fields of common here could develop mar^.u,^^ear :lns+tr^mentatl0n and ket §ains characteristic of well d*flJal jcomputation. New proc- managed electrical enterprises, esses dreamed up by this brain Other 45% for basics Good Adjusted splits sells now been • net earn- carry Mass. . „ r u in 1932. We mention this just to show how much dough' can bec made if vou string along with thp cs oro duction, delegating to Ho- Co&ieign mo the to power 111 eiectromcs. Tnirty-one old, it has paid dividends in numerous should and , foL1955 past. $500,000. a favorable position to share in •I?® Hyc°n korizoa \s. f"r>her profits from this dynamically exbrightened by its majority stock- panding field. Get the recent prosholding m. Hycon Eastern, Inc., a pectus, offering common at $3, research aggregation of eminent scientists devoted to development Hazeltine Corp. first last our this upon couple of hun- " fill . Our was in. would just touch ing companies in- ushered tance etc. article—and bore Revo- lution For Raytheon, Joining • Pasadena • Oakland • Portland • Cleveland Indianapolis • Eureka San Diego 8 The Commercial and Financial 1(2992) Chronicle Courtaulds, Ltd.—Analysis—Arnhold and S. Bleichroeder, Inc., 30 Broad Street, New York 4, N. Y. Also available is a Dealer-Broker Investment memorandum Delta Air Recommeniiations & Literature Rio & Grande poration lin Western a Railroad—Survey—Abraham Also available in of Fansteel Metallurgical Cor¬ survey Socony and Mobil Oil. issue of "Market Pointers'— 1 Wall Street, New York 5, N. Y. issue are analyses of Flat Glass Makers, in current Francis I. du Pont & Co., in Also the same Canadian Pacific Discount" stocks, stocks.- ■ Co., selected labor low come, Railway cost portfolio companies, for of "Dollars at \ '' Atomic Map, in four colors : ' Canadian Business Review Montreal. 64 Southern Leece Neville ■' Broadway, data May than more New Memorandum & York 6, Stores & Mississippi rities change, Bay Street, Toronto, Ont., Canada. Canada—Monthly commercial letter—Business on N. Division. The Canadian Bank of New Commerce, 25 Stocks Chemicals Valley Annual N. York Capital Rhoades Broadway, comparative Northern Oregon Investment Opportunities in Japan—Circular—Yamaichi Secu¬ Commodity Price Movements—Analysis in Digest"—Nomura Securities Co., Ltd., 61 Broadway, New York 6, N. Y. Business Highlights: Raw Materials York 4, N. Bureau, Inc., 46 Front Riverside Oppor¬ Street, Office Company South Wall Germain Co., 10 Match (Special African & Gold and Uranium New & Corporation of America Bowman In Special report — — Ned J. NSTA Notes In ' Investment Field June 30-July 1, 1955 (Nashville, Co., 10 West Second South Street, Salt Lake City, Tenn.) Security Dealers of Nashville outing Hillwood Coun¬ try Club and Belle Meade Coun¬ try Club. annual July . 8, 1955 (Cleveland, Ohio) >, Cleveland Security Traders As¬ sociation outing at Lakewood AD LIBBLNG Long Island City, N. Y. * L. Donald EVENTS illustrated brochure— Com¬ Avenue, * — COMING - Titanium Powder—Descriotive pamphlet—United International Research, Inc., A. R. Globus, 10-15 Forty-Third 1 Financial Chkonicle) Mass. Co. Hentz & Co., 60 Also available is an anal¬ Co., 40 Wall Street, New York 5, N. Y. on Gulf Coast tidelands—Crerie & Electric Building, Houston 2, Texas. pany, to The Lyons & Shafto, Inc., 79 Milk St. He was previously with Weeden Stocks—Analysis—White, Tidelands—Bulletin Co., First Na¬ Ellison has become affiliated with Post Utah. Weld St. to-the McCoy & Willard, 30 Federal Street, Boston 10, Mass. York 5. N. Y. South added Building. BOSTON, Corporation—Analysis—H. Uranium Corporation of America—New J. George — been With Lyons & Shafto Broadway, New York 5, N. Y. Street, New York 4,iN. Y. ysis of Bird & Son, Inc. \ has tional Bank economic ramifications— on 111. staff of D. J. Risser — DempseyLouis 1, Mo. & Financial Chronicle) to The PEORIA, Brochure views—Lerner Beaver New St., Co.—New • With D. J. Rbser — — the staff of 1385 Westwood Boulevard. (Special Locust Street, St. has joined Schoenbrun, -^Analysis — William R. Staats & Co., 640 Str^^Los Angeles 14, Calif. Spring Uranium 36 Limited Oils Financial. Chronicle) to The Crouch Leo Square, Boston 9, Mass. Universal • Co., E. Y. J. R. Williston & Co., 115 Stuart Y. * 5, Cement Company Cement President. LOS ANGELES, Calif.—Richard Inc.—Analysis—Harris, Upham & Co., 120 York 1000 of which he seven years, as (Special 1. Canada Ltd.—Report—Carl M. Wall Street, New York 5, N. Y. St. Lawrence Seaway—Comments Portfolios—Study of 10 sample portfolios—Harris, Upham & Co., 120 Broadwa.y, New York 5, N. Y. Railroad Stocks—Bulletin—Bache & Portland 14 With Leo Schoenbrun of Co., 42 Canadian Brush Invest¬ Counsel, served Leyshon & Associates, Inc., 292 Madison Avenue, New York 17,. N. Y. Over-the-Counter Index—Folder showing an up-to-date com¬ parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks used in the National Quotation Bureau Averages, both as to yield and market performance over a 13-year period — Quotation for Mc- Riddle Airlines Inc.—Bulletin—Hal tunity—Brochure—The Chase Manhattan Bank, Pine Street, corner of Nassau, New York 15, N. Y. National Gaines Phillips Petroleum Co.—Memorandum—The Illinois Company, 231 South La Salle Street, Chicago 4, ill. current "Stock Latin-American New Associ- m a n ates, ment & G. Harrison Pitt- Company—Analysis—Equitable Secu¬ Fund & Tegeler & Co., Co., Ltd., Ill Broadway, New York 7, N. Y. Japanese 7V. Analysis — Ross, Knowles & Co., Ltd., 25 Adelaide Street, West, Toronto 1, Ont., Can. Y. rities .... with Corporation—Analysis—Stanley Heller Gas Newport Industries, analysis of leading companies—Blyth & Co., Inc., 14 Wail Street, New York 5, — associ¬ ated Corporation, 322 Union Street, Nashville 3, Tenn. Loeb, De- King Street, West, Toronto, Ont., Canada. Insurance Y. Company—Report—Thomson * velopment previ¬ ously > had Engineering Company — Analysis — Ball, Burge & Kraus, Union Commerce Building, Cleveland 14, Ohio..v: pany Facts Mr. Brush Morgan Pension Plans—Bulletin—Johnson & Higgins, 63 Wall Street, New York 5, N. Y. need Co., 30 Pine Street, New York 5, N. Y. ' Equity Annuity: A Sounder Use of Common Stocks in Com¬ a n n o u Coggeshall & Hicks, 111 — T. Hay, today. Equitable Gas and Ruberoid. on Department Minerals review giving essential trading 1,000 listed issues—Toronto Stock Ex- firm, serior partner, & Kinnon, 11 Wall Street, New York 5, N. Y. Review—Monthly on data are 36, N. Y. Singer * Corporation —Data —Bruns, Nordeman & Co., 52 Street, New York 5, N. Y. Also in the same bulletin Wall Que., Canada. Canadian that Park Marathon Wall Street, New Canadian Letter—Fortnightly review of the Canadian Securi¬ ties Market—Newling & Co., 65 West 44th Street, New York — has general a been / Monthly publication — Bank of York 5, N. Y., and Montreal, — to Utilities Co. Street Stockholder partnership in Co.—Analysis—Ira Haupt & Co., Ill Broadway, New York 6, N. Y. (revised)—Describing and locating atomic activity of 97 different companies—Atomic Develop¬ Securities Co., 1033 Thirtieth Street, N. W., Washing¬ 7, D. C. Corporation—Descriptive circular—Troster, 74 Trinity Place, New York 6, N. Y.. Co., Iowa ment ton 7 in been admitted Company — Bulletin — Gartley & Associates, Inc., 68 William Street, New York 5, N. Y. Iiarvill Wall a specializing Relations, s — Analysis — McLaughlin, Wall Street, New York 5, N. Y. 1 account an Financial ana Gardner-Denver a steady flow of in¬ "two-way poential" and T".- .• lists and Cry an & Co., Brush, organization, firm Dynamics Corporation of America Airunes—Analysis Gaines executive with the De Witt Conk¬ 120 Broadway, New York 5, N. Y. Co., the same bulletin is parties the following literature: send interested to & will be pleased the firms mentioned understood that It is Denver O. Products Co. Gerber on Thursday, June 30, 1955 . De Witt Conklin Firm Inc.—Memorandum—Kidder, Peabody & Co., Street, New York 5, N. Y. Also available is a memorandum . 0. G. Brush Partner in Ltd. Lines Wall 17 Bowater Paper Corp., on . to response my * letter recent to the 1 Country Club. membership of the - . Allied Artists 100 Pictures—Analysis—Bregman, Cummings Broadway, New York 5, N. Y. American Radiator Edward A. Aztec NSTA, I Oil & Standard Purcell & Gas Co., 50 Sanitary v Broadway,' Fourth Street, • in¬ July 14-15 1955 (Toledo, Ohio) New York 4, N. Y. Com¬ Rock Conklin Cerium Mines Organization, Limited—Progress 100 report—De outing Broadway, New York Bonanza Oil & Mine—Report—L. D. Broadway. New York 4. N. Y 5, N. reporting Y. It is! Friedman & Co., Inc., 52 to Chase 120 Manhattan Broadway, Chicago 225 Mill 5, N. advise NSTA Meeds- be and Lumber Company—Report—Loewi & Co Corporation—Analytical Incorporated, 105 South La Salle George A. help we you sent in in securing brochure—Blair Stone, 120 an your ad? .r 18-19, Denver 1955 Bond Sept. 11-14, ; , f ; ~ (Denver,-Colo.) Club annual out¬ ing at Park Hill 1955 County Club. (Mackmae la- land, Mich.) Harold * Or industrial contract? National Security Traders Asso¬ ciation annual convention. Sept. 16-17 (Chicago, 111.) H Investment Bankers Association ernors. 120 Uoratrot §ecucttlcs descriptive Circular try Club. results. Dealers Portland, Oreg., annual sum¬ mer party at the Oswego Coun- Aug. re¬ have Securities of c/o Pershing & Co. - On the Press— A for Country HAROLD B. SMITH, Chairman National Advertising Committee ; & • * should reminder, Street, Chicago 3, III. — • coopera¬ this year a Dockham you can Courtaulds, Ltd. Analysis — Model, Roland Broadway, New York 5', N. Y. are we outstanding Y. Street, Milwaukee 2, Wis. that and As Consolidated Cement & Co., York & *, annual Toledo (Portland, Oreg.) Investment tion from all officers of the ^ - Bank—Circular—Laird,- Bissell New East Mason \ ,- of. Toledo the July 22, 1955 indeed-encouraging ceiving marvelous British Petroleum Co. Ltd.—Analvsis—R. W. Pressprich & Co 48 Wall Street, New York 5, N. Y. more. at Club. We will look forward to Wilt Club ■ • Blue Bond . Inc.; Bridgeport; Conn., was the first to reply with a sizable ad representing his firm.,,, ,,;;. v Corp.—Analysis- Richter St. Louis 2, Mo. pleased to form you that George Dockham of Hincks Bros. & Co,£ & Co., , Co.—Memorandum—Scherck, 320 North pany, and am Broadway, New York 5, N. Y. DEPENDABLE MARKETS Member Sept. 16, don Material and Consultation 21-23, 1955 of (Denver, Colo.) Stock Exchange Firms meeting of Board of Gov¬ ernors. Nov. 16-18 (New York, N. Y.) Association on (Philadelphia, Pa.) Valley Country Club, Ab- Association Broker and Dealer Manufacture of d:e castings and automatic valve controls 1955 Bond Club of Philadelphia 30th Annual Field Day, at Hunting¬ Sept. N.A.S.D. Harvill Corporation meeting of Board of Gov¬ ington, Pa. «o.. Ttd. on Fall of Stock Exchange , Firms meeting of Board of Gov¬ Troster, Singer HA 2- 2400 Members: N. 74 Y. & Co. Security Dealers Association Trinity Place, New York 6, N. Y. Japanese Stocks and Bonds ernors. without obligation 1- 376 1 61 Nov. Tel.: BOwling Head Green Office 9-0186 Tokyo 27-Dec. 2, 1955 (Hollywood, Florida) Broadway, New York 6, N. Y. DEMPSEY-TECELER & CO. Investment Bankers Association annual Convention wood Beach Hotel. at Holly¬ Volume 1 SI Humber 5442 v. ^( The Commercial and Financial Chronicle . sire The Dynamism oi Tradition ruin the great panies The Dr. Burgess asserts tradition itself may be dynamic in furnish¬ ing needed inspiration, and dynamic growth has resulted from what the people do for themselves, free of government help, when they have confidence in economic climate.. Holds our national finances furnish many illustrations of the value of both change and tradition. of is also one of the Banking, each of you may have discovered as you have sat listening to your teachers during these ing with Heraclitus and challenge of the world of today, we have built a new vocabulary. A good example is the word "dy¬ Parmenides. namism." the between contrast two philosophers whose Greek early names T were Heraclitus the philosopher of change. He was living—social in In bloodshed. without two as was Everybody uses it to¬ day. A political policy must be a "dynamic policy." A public pro¬ The "dynamic." by must word is from Greek the the dangerous gradually that others tions. Wars of threats and a doctrine. made short three funds in prime bonds. they put up to 50% in equities, Even life insurance companies are authorized by law in some states to buy shares. Rightly or wrongly, this marks the passing of a stout tradition. On Some of you business of ing balancing that when at took It '30s these mortgages the time. wrong the. emergency tial of the action to bring about a common adoption of the longer-term in¬ stalment both mortgage proved itself that it has been generally adopted. 1- In fact, it was the savings and loan tered war this ing. of - In of the is the key ^ are which lending. national our also many to remains the same." !. As I sit in ington, I dition back surrounded by tra¬ room, which dates than more housed office in Wash^ my am Th e . same years, once Johnson in his Andrew Lincoln's after Pres-r as assassina¬ tion, , because he did hot want, to disturb Mis. Lincoln at the Wh te •House." Portraits of former Sec¬ retaries of the Treasury now hang on this wall.* " : * t These f ormer realize When force is physical resist to Secretaries, as we read their writ¬ we are no^lteing offered to the public. matter of- record only. or inertia the slowing always human effort. Tradition- Still But been and down ' a Great Force $10,000,000 - the politician- who talks about dynamism in his speech always get arourid to say¬ ing something about the great traditions of America and brings in a resounding quotation from even Lincoln Or Jefferson or t ' . ' 4 "I Associates Investment 4% Frankly. Company Capital Debentures due January 1, 1969 nourished by the wells of tradition. : Religion is, of course, ings, faced problems astonishingly At this time of year, many of our own: difficulties in rais¬ us go trooping back to our col¬ ing taxes, despair over the spend¬ lege campuses and glory in the ing pressures of the Congress, the tradition of our colleges which constant importunity " of people has been passed down to succes¬ looking for Feder&t- jobs. "The sive generations. We want our more it changes, the more it resons to go to the ivy-covered col¬ ipains. the same." \ leges in order that they may ab¬ like „ I A New World But • fjp world in whieh gov¬ ernment works today is a diffeh- *ent world. threats faces It and dangers Which are new—the atom bomb is is destructive conquering with his came in hordes from out of did Genghis Kahn. wake of physical de¬ So East. Both force Attila world. -the new a new a the the battle of ide¬ tempo. There new; ologies has left a struction, but it was a narrow wake.. Today, again, the agerold destructive impulse to scourge and conquer the rest of the world ,has stirred in the East; but today destruction is not limited by the length of a spear. Whole popula¬ tions may be blasted with the : atom bomb. An entire generation may be poisoned by the insidious of venom the Under • rthe hot idea. an war joint pressures and cold war and a expect their Federal Government undertake whole a When new i range of activities and a new responsibility for the well-being of the people. ; A few years ago, a truthful and influential book bore the title, The book showed lustration in , t this country conquest from we have forward, from. - of - nature to moving one new with illustration .after il¬ how been one new another, social advance to another—how education is fitting our people for *An. address the t Bankers University.fune 17, by and interest¬ Dr. Bur?e6s before of Banking of the Association, Rutgers School Graduate American new New Brunswick, 1955. Hutzler N. J., war Every comes, area Boston Cleveland Philadelphia' San Francisco Chicago West Palm Beach Dallas of endeavor devel¬ ops its own set of traditions. One of the best known belongs to business. "The show must, on" has provided the inspira¬ tion and the strength by which many a saddened or sickened Thespian has surmounted per¬ sonal grief or illness and gone be¬ fore the footlights to give the finest performance of a lifetime. show These Notes have , go An American President gave us the phrase, "Don't flinch, don't foul, and hit the line hard." Tradition is a powerful This not been and announcement not are being offered to the public. appears as a matter of record only. $12,000,000 General Finance cohe¬ Ten Year sive force which enables millions Corporation 3V2% Promissory Notes of people of the same religion, or family, or nationality, or com¬ munity to work together to sub¬ ordinate their differences in vital tradition but a the emotions can be which in * due June 15, 1965 : . serv¬ ing a common purpose. A moral precept is a dull, inert affair; stirs itself Notes has been negotiated by the undersigned. Direct placement of the above a 1 : ' ' .»'••• ' * ■ great dynamic force. "U. S. A.: The Permanent Revolu¬ tion." & Sixty Wall Street, New York 5, N. Y. the band be¬ gins playing the martial airs of long ago; and the tradition of patriotism and the stories of the country's old-time war heroes prove the most inspiring influ¬ ence to rouse the new generation into taking its militant part. of changing social point of view, the American people have cofhe to will Salomon Bros. sorb the traditions of the past. V - placement of the above Debentures has been negotiated by the undersigned. * , , ■' Direct forces of the world standing in apparent opposition: "dynamism," the symbol of change and devel¬ opment; "tradition," the powerful urge to carry on the ideals and principles of the past. Salomon Bros. & Hutzler Sixty Wall street. New York 5, N. Y. Boston Philadelphia . Cleveland Chicago On the surface, these two forces often appear to be in contradic¬ tion. One says, "We must not let mere of tradition stand '• i \ Here, then, are two of the great in the way progress"; but the other cau¬ tions, "We must not let the de¬ San Francisco Dallas same essen¬ trans¬ sit West Palm Beach - on table. cus¬ good bank¬ illustrations Continue^ patterns, often calls for the of which 100 first-few months in office ident use not announcement appears as a no r ; ' ■ finances, there - This his at tradition the v banker the These Debentures have > integrity is ' In banks, form is the banker. must tomer so commercial the sides associations, rather than the char¬ developed night. know¬ Complete confidence of the payment - which has books the looking as There complete in your for customer and his char¬ that arose properly tradition =of well as statement. due leave the enough to remember the troubles fell are There is the tradition you is your acter hand, there are in the banking which always before There old are other traditions cherished. second rates. the many five to trustee would, principle, invest or of pension the last few dec¬ over matter a Today it, and thoroughly It was only mortgages, supplemented by mortgages at very high year, , of as gage mechanisms of previous gen¬ erations by which banks and ing has suffered from the slow¬ ness to make changes. This is not strange because the banker, as the custodian of other people's money, develops a strong pro¬ tective instinct. This is his plain duty. V But, let me give you a few tides, the awaken our sense of history. growth of all living things, and the Thus we understand that it infinite variety of human events. takes offort just to stand still— Parmenides was ^ the philoso¬ the law of nature decrees that pher of permanence, of dhe es¬ every living thing moves either sential continuity of existence. forward or backward. To remain "The more it changes,, the Mnore it in the same place, to follow the it All of you will recall the mort¬ stand-still . movements as experimented in this field, found it good, and adopted is as a regular depart¬ ment of banking. . Eurfess prudent banker of ades that the banks dynamis, meaning power. It con¬ illustrations. the most im¬ veys to us something more in the Sometime in the '20s, the Eco¬ portant char¬ way of explosive growth. Modern nomic Policy Commission of the research and invention, the atom acteristic ' of American Bankers Association the world was bomb, the newer chemicals have employed a competent economist stirred our imagination and de¬ c onstant to make a ! study of instalment ch a n ge, 'its sire for change. A new popula¬ credit. At that time, instalment fluidity, as he tion^ spurt has pressed for new credit was a method that was observed the schools, new houses, new occupa¬ "used Only by a few finance com¬ thought form poor one. funds provide another illustration. A few years ago, a Committee're¬ ABA a Pension ceived the report, studied weeks. banking, The been had the made safe and valuable a credit. forces may have achieved a slight edge over the dynamic* and bank¬ To describe the fast-moving gram who 9 The, traditional' lending •' practice* loan, sharks! the suppressed It problems of The Graduate School When I started studying the history of philosophy, we began adventures by study, after a careful investiga¬ tion, reported that instalment credit, if properly administered, Dynamism in Banking revolution and economist endeavor. By W. RANDOLPH BURGESS* ■ change into a harmonious relationship of these two great impulses which bid for men's minds is one of the great¬ est problems of government, of banking, or of any other human Under Secretary of the Treasury for Monetary Affairs Former President, American Bankers Association r for traditions of the past." The successful yoking (2993) ' on page of 27 (2994) *9 is used Banks' Role in Mortgage And Construction Loans Vice-President, Wachovia Bank & Trust Company Ascribing the tremendous expansion of home building to; (1) a relatively le w volume of construction since the beginning of the 30's; and (2) the growth in population and tendency toward larger families, with improved dwellings, Southern commercial banks should back this hanker contends sufficient Describes handling construction Almost it week every of days should completion to assure the control a products we hear so article an ord reached was in a rec¬ the in much the new appears indicating A great Commercial Banks in Mortgage building Where do the commercial banks i -v fvs construction L2*. this into fit | Yearly picture? fi¬ expenditures nancing needs of the home build¬ in ing 1954 estab¬ record of approximately billion, the eighth successful of recd-breaking year outlay. It 1955 have reach to $40 thereby more, establishing Indications record. another should reason the assets. reasonable a conventional, v FHA loans, if for no other in be to position a offer a complete banking service. can and well rounded million one than whereby it are building starts in top have of and GI home billion, per¬ $39 and commercial bank can a should and Kicu portfolio that residential 1955 ti. peak about haps Charles will a of diversification a Certainly expendi- tures of now that appears in . Regardless of each bank is mark for the seventh consecutive believe j every to •>. loans, feel that this type of loan extraordinary hazards and jby the owner, the builder, the rate of return does not justify others concerned with the offers additional the work involved. It is there risk the or struction many certainly true that size location, or should loan use we rather than a a deed first lien, procedure, and • neglithe part of those re- on we the site. require that the to H . V - . „ An Experience Cite^ j., of that few days ago, a there was period of relatively a construction of low for relationships with long-term investors such as insur¬ ance companies and savings banks. particularly dur¬ years, ing the 1930's, and cessation of a nels of obtaining credit reports and financial statements. It is Sustained losses which then were equally important to know your considered mortgage loans;*- and contractor and to assure yourself position to for a^long lime, management was that he has sufficient resources to customers, have established their correspondent a This preferred residential construction puts them render the in a service same as if they or the war years; (2) The and ♦An address Credits byv Mr. Conference Convention of the at Rich the before 53rd American mortgage the Annual of Institute loan deed of trust or which ever the case mortgage, might Eanltiag, Miami, Fla., May 30, 1955. be; the generally permanent this method conservative most in its support the contract made. attitude for proper of at least up sizable a became our the • • • Chicago Board of Trade talents AND - V » " YORK , • OTHER CHICAGO PACIFIC Here we I. ■ . NEW or you on commit¬ dual FHA approved as for the owner r disbursement but occupant; amount approved not exceed the operative • BOSTON COAST • CITIES / SEATTLE will for until firm builder commitment to owner-occupant is No loan should be made received. on FHA conditional commitment. Chas. O'B. should familiar had we I Murphy III V.-P. of John R. Roland John R. Boland & Co., Incorpo¬ rated, 30 Broad Street, New York elected of lending of- with readily spot be sufficiently building a and firm removal also in dealer charge relations. announces their large quarters on the to 43rd floor at the same address, With First of Michigan of our ; . FLINT, Mich.—George B. Leach has of become associated with First Michigan Corporation, Genesee Bank Building. Mr. Leach vears. that is mercial & Savings Bank of Flint. "FOR SALE" Canvas bound COMMERCIAL handled we a did mit I to handle loans commitment manent investor construction remember FHA years CHRONICLE 1926-1951 inclusive. for a This beautiful set available immediately. com¬ without a per¬ prior to the first advance. FINANCIAL that say not, in any instance, to take-out will like volumes of the profitable very 4 would covering the & Also, insured you all Phone REctor 2-9570 was formerly with the Citizens Com¬ for mortgage loan , (Special to The Financial Chronicle) might look to v to costs contract Vice-President trading The too low or even handling construction fi- nancing Son Francisco Stock Exchange radiotelegraph circuit to Honolulu • be to estimate achandle job financing Therefore your bility credit; and I might add that this - • even. millions of dollars of this type of leading commodity exchanges HONOLULU open ment, the amount of the note will to allow the builder to come out our operation. LOS ANGELES an in was period of five los Angeles Stock Exchange • Midwest Stock Exchange • American Stork Exchange PORTLAND justifies full swing. "This appeared to be a fertile field for Co. » If (5) - them too low for profit mortgage loan department. turned out to be *—Private leased (Excep¬ utilize the facilities Memberi. • enable curately staff, so we entered this phase of financing rather heavily. In a ",l disbursement. equal to such difference.) v loan efficiently. Errors in estimating costs may result in bids that are pro- portion of necessary fields to housing Dean Witter SAN FRANCISCO a and, of • Exchange to At that time, FHA 608 large scale DISTRIBUTORS and other the you of the borrower completed contracts. It has been found that many of the small home builders lack - sufficient knowledge of accounting methods rapidity and to disSince it DEALERS Honolulu Stock made been add, efficient mortgage loan staff,1 BROKERS • to deposited with or tion: when the financial condition on this types, it was felt advisable to new Exchonge If charged with the responsi- built UNDERWRITERS New York Stock view- of FHA and GI loans. INVESTMENT SERVICE - have contractor, nish you with financial statements City, announce that Charles and to investigate through availO'Brien Murphy III has been able sources his past performance fTcoS? pose 8c In rapidly. grown ceed with less Complete you policies. During the depression, bank, like so many .others, it under . ~J When struction loans. In 1945, -do rot know the contractor, it is investigation and advisable to require that he fur- advances fully our making the loans themselves, after extensive accomplishes two things: growth in population and a tend¬ (1) the banks have assisted their study, it was decided, in order to ency towards larger families is customers in obtaining the desired render a more complete banking another major force behind the financing; and (2) they have main¬ service, to establish a mortgage loan department. Therefore, manfctill unsatisfied demand^o^new tained their original position with agement proceeded to employ exand improved or larger dwellings. them. perienced personnel and embarked Construction Loans^ In view of all this it would ap¬ upon an energetic mortgage loan Methods of handling construc¬ pear that the resurgence of the program. We made conventional tion loans will necessarily vary in loans within our limitations and construction industry since World the different states. Generally aggressively solicited FHA and GI War II occupies a position in our speaking, however, I believe the loans. In 1949, due to our active economy equal to atomic energy, two methods which predominate solicitations of FHA and GI1 loans, television, or any of the other are: (1) making the construction our mortgage loan portfolio had during is have determined that all funds required to make up the difference between the amount of the long term loan and the total cost of all proposed con¬ towards mortgage were construction and '• ■' (4) report volume 90% .of exceed is commitment. our and it should never be forgotten a pub¬ With your indulgence, L would and no materials had been placed indicated that an¬ that bankers have nothing to sell like to give you some idea of our on the site or labor had been perother high was reached during the except service. Many of our banks the recording month of April. today have adopted a hands-off experience since World War II in formed - prior to Bank and Trust date. \ attitude toward mortgage loans, the Wachovia What are the causes for this Company, at which bank, I might "• As with any type of credit, it is tremendous expansion? We rec¬ particularly FHA and GI loans; and I am afraid in some instances add, I'm. mighty happy to be on important to know your borrower, ognize that many reasons can be be .satisfied with his credit, make no effort to assist their cus¬ the payroll. For many years prior to and are offered, but it seems to World War II, the general character, etc., an d particularly tomers in arranging the desired to rne.that there are two basic fac¬ credit officers handled mortgage his ability to handle the mortgage tor^ which have created this de¬ mortgage financing elsewhere. On the other hand, some banks, in an loans without the benefit .or as- loan transaction. These can all be mand: (1) It should be recognized effort to render a better service to sistance of established regulations handled through the usual chan- Only year. lished to the long term ready to proceed with closing, advances can be made up to 100% of the long term1 loan of trust and th?t an aff'd^vit ~ be signed by the contractor owner and a disinterested party stating ^at ^ey inSpeeted the premises * ;i term When lender Sponsible in carrying out existing deed policies and procedures. not completed in- of recording . to responsible lender. a long loan. spection be made of the site subsequent bond.. acceptable loan commitment but on any type of estimate not to exceed 80% of the long term In an re¬ is contract the order to insure thatVwe do have a qoal- personnel, the absence of a on an a (3) In an amount disbursed during construction on a firm trust .is a valid ard first lien if it material or of mortgage loan from is recorded prior to the beginning of any construction or the placing any contract estimate property structure deed of trust lender's simple rules a regular real loan after - the completed or against firm commitment for a long term estate and curred due to the absence of. gence to (your bank) for you straight real estate the that few firm cost (2) On - mortgage. Under the lien laws of our state, it is generally ac- ,cepted a bility, get completion through the mortgage loan officer, Laws pertaining to mechanics and materialmen's liens vary with the different - states. In North Carolina, On con- of systematic like hazards if made be would find that they probably oc- ified 1 would I followed—that loans be made: .. review these losses, I am sure we service institution, a are the sponsible contractor; and if there is any doubt as to the responsi¬ iar with all-aspects of mortgage lending. In the interest of efficiency and good customer relations, all contacts with the bank rejpc- banks have Summary summary, (1) general supervision of an infamil- .- ./ are construction many make I of some .me which you are wel¬ to look at if you like. itemized opinion it is essential that mechanics be established entire program be under my proper details connected with the financing of construction greater than all corporate bond loans, but it is easy to exaggerate issues, all state and municipal this phase of the financing,- I bebond issues combined. Every year lieve the adverse feeling towards since the war and even today, the construction loans on the part of total rate of savings has not been a great many bankers is a misunenough to meet this demand and derstanding that has arisem partly at the same time permit the lender due to an occasional heavy loss to meet other requirements and sustained in the past. If we could $37 o r short both industry, long-term credits, are equal to or lished another new ancj They Field industry. Pub¬ lic and private tant in sound but the dividual who is thoroughly about. lending, are to hanloans, bank should, ancj culties. forms use • In mortgage ing the bank in a more favorable . that newspaper construction position and permitting .it- to act immediately in the event of diffi- new to dis¬ our should your bank decide ^ie opinion, it is preferable to the various instruments demand basis, thereby: plac^- my :'vi me various them for our own portfolio, repeat that construction loans do Enough about Wachovia and back offer many hazards; but I believe that the advantages far outweigh to construction lending, prepare on that "r . ing In of the contractors. these loans, on : permit the with we come principal function was as the construction lender since we were not develop- other unforeseen obstacles beyond operations. fabulous seems brought forms time basis, a' gee for or,4 documents essential construction companies under a prior commitment. Although we were the originating mortga- lays due to inclement weather or move¬ institution., .Urges banks loans provide the proper mortgage number and detail take-out time basis or a in cuss surance construction, taking into consideration, so far as possible, de- own mechanics for on period, we also developed a volume of single-family large of deed this During Time does not FHA and GI loans for sale to in- of perform ,a-well-rounded banking service. methods of making construction loans, and cites experience in this field of his If allocated be if they are to ment construction protection. same mortgage. This instrument demand. on f or be payable on a can Carolina North added handling the permanent financing; (2) (I believe the one best adapted to commercial banks) taking a trust ; construction advances on projects obviously too low of this kind, thereby giving us matter, too high. construction loans unless they are temporary By CHARLES B. RICH* Charlotte, by the building and. loan since they piake - no associations 1 Edwin L. Beck c/o Chronicle, 25 Park PL N. Y. 7 VoluHie 181'* -Number 5442 . , oil, From and Mr. Babson discusses concessions for doing agreements. of tion light-heartedness local but •* ton to whether he will as revealed in 1956. run who those th™ on accom¬ ard Oil interests have panied him. None of the distaste which he has heretofore displayed towards politicians the or that lutions "against the white Uranium, Aviation, the Telephone, and Television are opening up the entire .'world to businessmen wAh Where the -Last Vision, handshaking ana baby kibs>u.6 c. politician is expected to do. None of the irri¬ tation fish about not whenever to wants and to the or without vestors what not When the Chief is in him. to bad mood it a pervade the whole camp. This . seeming change that came is the important news of the trip, I the However, W$' enemies or hopes of any and — he has getting him ever y over him gather. legion JUt*« Bargeron which he enjoys, they certainly must have been dissipated by the trip. There is a question as to whether it was Eisenhower's trip or Adams'. At any rate Adams, praise for him, was the subiect of nearly every Presidential utterance. Adams was responsible for the trip in the first place. He persuaded the President to make it. New England Republican Senators and State officials were on hand ♦at the proper places but I haven't read or learned of an instance publicly returned their courtesy or mentioned when the President their which is what names thing Sherman. was they would have dearly loved. Every¬ visited Sherman's home, called on his He He didn't visit any of the Senators' homes or call on their mothers. The picture inescapably left among New Englanders is that of all their native sons in Washington, Sherman is the most mother. influential I don't know what the political purpose one. against them. Adams' six-year it can't be that Sherman is being groomed to run terms last year so - , close with Eisenhower began back Eisenhower's entered name the in primary handsomely and it won was and the invest Street, has been changed to Rippel & Co. During 7World / War was sacked ' be used world-wide. and do in ; The the by Burma to The Financial Chronicle) (Special BEVERLY y7v:77 HILLS, Calif.—Wil¬ liam H. Andreas and John, C. Cox have Plan joined the staff of Daniel D. & Co., 140 South Beverly of electric ownership, Board the membership and of 7Y'Y:7.177'77. .7;7 Drive,. the With King Merritt i or foreign-owned companies between (Special ta The Financial Chronicle) operations, and the old stockholders and the for¬ later mining and timber rights. eign government at the start of, LOS ANGELAS, Calif. —Mabel Some were unprincipled exploita¬ the reorganization. One-half of S. Opley has joined the staff ,c£ tions, but most have been hon¬ the stock goes to the old stock¬ King Merritt & Co., Inc., 1151 estly operated. All, however, have holders, and the other half is put South Broadway. in trust in a Rangoon bank to be given little attention to the local power manufacturing plants, merchandising people of these foreign countries, delivered to the Burmese Govern¬ whom have had ment almost a of none have insures that the will diplomatic many contributes Curran Adds To Staff and labor (Special to The Financial Chronicle) agreements "one-sided" caused it supplies. The Govett Plan native stock interest. 777 These as be SACRAMENTO, Calif. — Sylvia J. Little is now associated with profits henceforth The fifty-fifty. divided 5336 Fourth The Curran Company, Avenue. foreign nation supplies the ore, or misunderstandings and even revo¬ This advertisement is not, as buy and is under no : circumstances to be construed solicitation of an offer to offer of these securities for sale or a an any of such securities. The offering is made only by the Prospectus. Corporation Jerrold Electronics much grumbling on the part of Republican members Congress. He has been held largely responsible for the White bungling of Democrats and given them so 7 much material with which to cam¬ bungling has had to do with the political mechanics rather than with fundamentals. '- '. •*." .7 • *. v, 1975 Due June 1, 1975 Political mechanics are get out into the country it is amazing However, when you .>■■■• , Dated June 1, 1955 Price 100% and accrued interest politicians and the Washington commentators. the life blood of the •• o 6% Convertible Subordinated Debentures, due only the Democrats can. a way this so-called $2,750,000 - have delighted the matters which many so how little attention people pay to them or care about them. They become important and are on the lips of people generally when things are going wrong with the country. are Things going good. They mean nothing when things 200,000 Shares going good and the countless little are Y y...-y-7 I }■ 7; '-7. L;.'•*.- • *•' .7 guidance, in Washington attach so much political misdeeds which have been attributed to Adams' rightly wrongly, and to which we or importance, fade devotion to the a the people who vote. seems to be no question as to Adams' he is serving. man task master to those who serve under him hard Price $4 per From what they tell me, he is there ' */. • * " ' " •*: • '•y 4 ';•••*• 4 4 Copies of the Prospectus may be obtained at the White the But he is obviously in the saddle. House. . •' '• • . : 'y" •' ' "Y'V /''• i, ',,'7.7 " V\ ' Common Stock will learn that, I believe. the meantime, In completely before away The gay Democrats several underwriters as share • ■ '• '4 v - V.;7 7 7 . • • named in the Prospectus and others lawfully offer these securities in such State. may •. in any State only from such of, - friendship that I can't understand for the life of me con¬ A another cerns among man Republicans quite unpopular in on Washington, particularly Capitol Hill. He is Harold Stassen. He was "for" Eisen¬ Certainly Eisenhower owes him nothing. pre-convention days of 1952, or at least he said he But the fact is that he was a candidate himself and entered Van Alstyne, Butcher & Sherrcrd Noel & Co. hower in the was. several It primaries in opposition to the General. is true that when he 'saw he wasn't them and this was just his way of showing it. the waters against Taft, think this was what he was doing, however. to -Eisenhower turned him down on and Doolittle & Co. delivering the second roll call. said they didn't need H. M. Jones, Kreeger & Hewitt Byllesby and Company (Incorporated) But the delegation anybody to deliver Boenning & Co. vote for Stassen. . June However, apparently against the opposition of nearly everybody around here, he seems to stand ace high with the President.- Jenks, Kirkland & Grubbs , Woodcock, Hess & Co., Inc. them; they were going to Eisenhower on their own after a token Arthurs, Lestrange & Co. Bioren&Co. Chicago convention he pleaded with his Minnesota delegation to let him have the prestige of them Moore, Leonard & Lynch He was muddying he argued. The Eisenhower devotees didn't On the show-down at the Johnston, Lemon & Co. Francis I. duPont& Co. getting anywhere he explained to the Eisenhower devotees that he was really one of •. on of Directors for that as he should. so But Join Daniel D. Weston v Govett's Plan divides stock Mr. consisted concessions railroad and trolley lines, Eisen¬ in official Washington has been the It is doubtful if any man paign in II Weston Qolr'"' w Bahs°n countries. These name Rippel, Inc., 744 Broad quickly into the Eisenhower campaign entourage moved House of Julius A. of Bengal Bay j Announce¬ —- ment is made that the firm in subsequently to the top place. subject of of / the beginning of Taft's end. Eisenhower has always felt grateful to Adams Adams a ■ Rippel & Co. NEWARK, N. J. developments. wonderful climate on Burma ■ Presidential for delegates when the late Bob Taft seemed to have the edge. hower Oil- Co., Burma .7 i Chnged 7 - relationship To Adams- was Governor of New Hampshire at the time. early 1952. He of it was, New Hampshire's two Senators were elected for if any. Burma Govett, of 37 Dover Street, Lon¬ don, formulated a plan which will business : been not mind "concessions" money ' . India. foreign awav President's side, from the intimate and powerful position has m Japanese, and Burmese companies were forced to reorganize. J. R.: to Carlisle ' Firm Name promoters sought • :" ■ midway between Indo-China and • 4U 4 ' vhave ■■ had — d American impressed me most was the affection which he showe^\f r his top aide, Sherman Adams. If any of Adams' critics 77 \ * 'r. MM.') 4 • s ~ Joseph Lead Company follow. ' y y 7 may foreign has faces and 8 •> have, I Limited, Burma i' this Burma other and . '100£ y e a r case. Mines in¬ English '<• and that thing '' seems "• " in the past in- ■■ with For the they usually have in accompanying just adopted plan for the Argentine, and the St. man." has voluntarily give up anything, he has ultimately lost; ' -vision. man" "white his "pound of flesh" and on but sugg^s- tionjsJto public gaze. The result is that the accompany¬ ing newspapermen had a gool time which is similar has refused to offer some being able to play golf he sited Wni i now' showed I week com¬ in the Govett Plan. Powerful Stand¬ investments. '7 77.' his trip through New England has revived was other in Africa, Australia, and Argentina which are considering a speculation in Washing¬ A new, relaxed Eisenhower believe I also panies Approves the Govett Plan of a 50-50 participa¬ governments or capitalists in making foreign on only believe in the future of these Burma "50-50" companies business in foreign countries, and the difficulties arising from such "one-sided" By CARLISLE BARGERON supply the "know-how"" management. I not of the Neivs President Eisenhower's cheerfulness and the investors ROGER W. BABSON By customers if it is a utility, English and American or while Foreign Investments Washington Ahead '11 (2995) The Commercial and Financial Chronicle . 30, 1955 I • > 12 The Commercial and Financial Chronicle (2996) No Continuous Flow oi Savings Into Moitgages What should and not that belief will be that cannot boom. ful President, The Schenectady Savings Bank, Schenectady, N. Y. is checked President and we Upstate New York savings bank executive, warning against deficiencies and defectiveness of housing and mortgage statistics, discusses the impact of the rapid increase flow of savings and other capital funds into mortgages. and calls attention to Let first offer me Take all statistics suggestion.- a housing with on goodly seasoning of a salt. As matter of fact, I suggest that always adopt a n inquiring about about and stretch will but a consolida¬ tion for further advancement. But, of thusiasm, promotion and bankers Macfailane, Jr. One of great difpculties in this country our to be to get at the facts and distinguish reliable figures from seems deal has been banker the over learned past 30 that too have the FHA as making of veteran loans has required the combination of the best public relations policy and good mortgage lending. Ordinarily factors these two team together. difficult are In of too a Money now is maintained. thoughtful becomes the we has the tremendous increase every further reason or capacity for growth, at which point the economy would become stagnant until the population increases or some no dynamic starts it upward I often wonder whether the again. current has force mortgage market, increasingly become upon little with which based longer no down payments, terms, has not been too fast and too lon<* and moving or might burn itself out. The builder, real estate man and the mortgage broker believe the pace to be real, ^ SJ , °thers . have be- the middle road that we, the bankers, must tread and tread successfully. Certainly this coun- forward to a period people recently said, the economy has hardly worked up a sweat. In ,y, cai? of further growth. As some have of what TD0\nfu But this • upon one are J* 4U capable of I1, c.ruisinS- x thought naturally is based our productivity as we continued increased per man, per acre, or would say, per the whole economic machine. I have always . believed ... that , .. overextended. should not be misled that have to and garage Thus, it is jon that three a in cars television set considered opinlarge a volume of my too dekt has been created home ..building because of installment and purchasing of day consumer goods. Togoing through a great optimism and we will of have other great periods of optim- jsm) but too much optimism for new home purchases will eventua]iy create a surplus of old homes just as it will create a surplus of 0id cars too if we long. You banks that rowing produce too fast and can in your are bor- see people today aggressively and we are .. . r productivity is the too willingly the lender, all read ads telling to fly to Miami and pay later Haven't you —buy automobile an week. It 0r you to seems me for $8.00 that a sooner later the American family will a point where, after install- reach ment payments have there will be very not believe perpetuate we have a that been made, little left. I do any system boom such seen for as the the past can one cannot be like that of p?j?' W^hoXe learned ™"ch over the past 30 years and declines should be more modest. In if of his some the house own proves W°rds> tMs COUntry should /An address by Mr. Macfarlane the American Institute of before Banking ' have learned 1929. its leSSOn back in Societies Analysts I . of Financial which be of inestimable aid would in the com¬ ing period of international lending investment. and Osborne & Thurlow Formed in New York of get insurance he stands to bad invest¬ his on lose loan money first if his judgment wrong and This is a that we the loan glas proves standard to go on. I think Life with current conditions Statistics graphs of in est rates increased to The GI and have rates the as mortgage Since sion cerned that vestors the three have other Now rowing were so tight. However, as that so booms have America the . Guaranteed ings ventories ing in effort investments to other an when forms obtain Like umpire an the market return when they seek it. The result to is that at such times the cost of mortgage money reaches by the same low a point, and token it provides an exceptionally easy medium for increasing prices when housing is generally short. Now that money rates are have become notice that country have more attractive, 'throughout commercial loaned never mortgage terested. read firmed up and mortgages Wage. in are dime a becoming papers on at Federal In¬ a have you about of some the big Wall Street banks opening departments with very capable men to operate them. It mortgage has injected new factors into the mortgage situation and increased competition. has thus now our problems. problem which a get down to of has the life about of the out-of-state been considerable by What some lending along for going number insurance of of savings banks, and is aggres¬ sively being sought after now by Continued, on tion page 24 of New bounds low or and it 120 Investment Sleepy action either capital out the take to side, any of York organization's mem¬ Associa¬ attended outing annual the at Hol¬ Country Club in Scar¬ rain York. A heavy the Continuation of American Boom This epoch in will history probably the as Era go of vis, Feeling, predicted Mr. Da¬ who foresaw no immediate end to the American boom. On the countrary the dynamic popu¬ lation growth, the amazing ad¬ vances in technology and the eral acceptance of the gen¬ reforms of the past several decades which in effect put floor under business a all make for an optimistic outlook. People have been afraid to call this combination of favorable cir¬ cumstances the a New Era because of connotions of the late, fortunate, '20s. a less Realistically it is New Era, concluded Mr. Davis, and those who believe in it and who have acted accordingly have prospered do and will continue to greeting from the 4,500 financial analysts of America to the finan-, cial community of and expressed way Great Britain the hope that might be found for tion of two countries seas," amity. late an some affilia¬ interrupted ~ the golf, ten¬ nis and swim¬ ming ties. activi¬ About 130 members stayed for at dinner Sleepy Hol¬ analysts in an of He envisaged of the "across the international an Interna¬ H. low. Bill Gal¬ ments for the Parker Lawrence lagher, Lee Higginson Corporation, committee, handled the and his arrange¬ golfers, while Harry Jacobs, Bache & Co., and his com¬ mittee, lined petition. up Winners in the the tennis com¬ gold tournament were: First Gross Low — Joseph A. Lee, Jr., Reynolds & Co. Second Low Gross — Score 73. James E. Osborn II, Dominick & Dcminick. Score 77. son, ton, ; Net—John Arthur Amder- Riter & Co., and Verne HorGoldman, Sachs & Co. tie with 68 score. Closest to Feet) — Boston Pin on 17th Hole (3 William H. Steen> First Corp. Longest Drive (Second Hole)— John Y. G. financial gesture in afternoon Low so. years companies are von Oiling Friday, June 24, bers baseball a Mr. Davis brought a message of Savings Banks Mortgage Problems Let's Inv. Assn. On Government in¬ moro Undoubtedly the who firm Golf Winners at Sav¬ best in many years. we the entire banks the Gottfried old Nelkin. excesses Good to Gran, borough, New reduce mortgage rate below that of the savings bank. In other words, they have to buy their way J. is fair to say, Mr. Davis observed, that labor relations are at their down the with Associated Lennart minimum of delay at retail. a readily available, the commercial banks have generally been inclined to into ham. of not were no all-time peak. an labor, gets cases of consequently mov¬ factories to consumers mortgage portfolios. mortgages for occurred. are from with Annual at are prepared some Paris. Osborne, Bradbury K. Thurlow, Oliver H. Everett, Henri de La Tour d'Auvergne, and Charles H. Cunning¬ is King. Wages are going higher under the when in V, consumer high and stands Unfortunately George H. Thomas are Formation of the firm was pre¬ available, the commercial had. Avenue Ironically enough, America has viously reported in the "Chroni¬ adopted that part of the Keynes-« cle- of June 23. ian philosophy which holds that banks did not wish to add to their already 7 Meyern-Hohenberg, Henry MacN. the they and with offices Broadway, New York City, Jones, Edward LeMaire and Har¬ that see game, Rather the the government is de¬ to other forms of investment inclined to retain what they 39 Partners is as were not of Thurlow, members of the New at con¬ made distortions made of July 1 of Osborne as York Stock Exchange, be to This has the became soon & have appear. are type of investment with adequate yields. This was particularly true during the war period when restrictions on bor¬ corner." attitude termined the other no the money and banks, building and loan associa¬ tions, and life insurance com¬ tain thought was is really beginning to enjoy the boom, fear has dis¬ appeared, people are spending far panies. The commercial banks formation fear a Thomas Osborne B. K.. Thurlow Announcement of centers Americans war which caution con¬ always in the market for mortgages at times when they can ob¬ London members lo¬ financial from "around primary in¬ savings been in States and Canada. the servative in¬ as is Society psychosis, said Mr; Davis, and have continu¬ ally been looking for the depres¬ moved market 18 in suffered creasing of interest rates to de¬ positors immediately requires larger earnings for you bankers. FHA Co., he addressed of 4,500 the United their inter¬ depositors. Alli¬ The National Federa¬ consist cated will yield. Commercial and savings banks have Analysts June 29. tion long- rates Insurance don on there and money S. director of the Manufacturers the inaugural meeting of the Lon¬ great deal of competition for a of tation of Dou¬ Shelby Cullom Davis high prices make good mortgage loans. can Sos e At the invi¬ own son, Under current t i e America. is defaulted. even i c unless of his some of Analysts first money a ment. No lender should be able to and Miami, Fla., June 1, 1955. rJ Federation Financial financing unless he stands to years. economy war¬ National Federation 10 Yet, I must admit that the pattern of the future under this pre¬ business and be able to get government help on we are period is terms in half- becoming formed doubts. Somewhere in tween mortgage study the order that he in every room, point; point at which there would be a the become not one Some have feared that in shouid He carefully will And it might reach a saturation money a banker the past few years have been puz- gage loans. money, the family a new home, demand. This should be the important function over mort- necessary together sufficient zled and somewhat worried about in the begins to seek and cases bankers demand for in- need. When a business. Volume Many lacks That is of The Question of Mortgage Loan statistics and study our and the explain it this way. A family in a needs better housing that will good my tenement of and into creased mortgage lending. Let me scrapes loans flowing been has of sure that both policies must coordinate unerringly if a volume good banking our opinion, we are at the point where we should but me of dous rate. In banker, to neglect the public relations angle. With GI loans it seems to govern- the mortgage market at a tremen- be conservative the should upward. We must recognize the need good will, it is easy to relax the mortgage loan policy or, in bankers us the behind system. to create fearful cent's protection. Once that happens, the door is open for the to effort an in am of many hide the occur market, avoiding as under tional Dovis his lose are I does trouble mortgage tells Commends optimism. Co. of New President many are relying clearly indicate that we have been government guarantee, gradually getting into a higher in¬ The more this is done, the more terest rate pattern. The result has been a drop in government bond you trend toward socialized banking and, if it should come about prices with a consequent increase socialization now buyer "floor" banking York money on a sented. We part of our mortgage system. The own Societies invest- Cuiiom & Too solely about mortgages and mortgage lending. New conceptions of the entire problem have been preyears No wrong. term would case proves mortgages. that guesswork. his of some is gages. realities. and on lose to Analysts firm of Shelby first if his judgment on the house carelessly. Too many are making K. the ment City Bank "Letter," that no builder should be able to get government help on his financing unless he stands 30-year, no-down-payment mort¬ are mixed with the present time the at lending I be¬ recently expressed was treading the mortgage path rather facts by the during these periods that the banker must be careful. Too many liberally great a would be nothing it is A Then band. rubber a hysteria. Crackpot en¬ to be slackening off period will have to arrive.' A slackening off period certain politics will economy our stretched at times like one would has amount loans. coming 20 years or more, great need for more better housing. During this period continue to be a mortgage make to Over the But and low, the banker must con- or there will be housing been high tinue any there — well as welfare as your Regardless of whether prices are a you frame of mind statistics. to mine. key as rants by the First National changed conditions in the mortgage field. Maintains healthy and vig¬ and its end is not yet in sight, according to Shelby Cullom Davis, manag¬ ing partner of strong in mortgage lieve, distortions. orous Now, to become financially gages. Financial vigorous boom will continue. our ican boom is still of his "risk calcula¬ reviewing new mort¬ tions" when field. mortgage that a mortgage officer himself is to make sure America's LONDON, England—The Amer¬ police doubly Sees some problem in present size of nation's mortgage debt, and urges bankers adapt themselves the way can "the boom" to be continuous, expansion of commercial banks into to will One should not and cannot expect we ourselves so that become financially over the coming years. stronger of the Says vious be placed on we the Healthy, Davis Stales public's conservative and cautious attitude bankers will plan sufficient curbs to of London analysts excesses time in Thursday, June 30, 1955 . a hope¬ my present Boom Still we expect is It . Hi- Boom saying am continuous JR.* By KILGORE MACFARLANE, I . Walker, Jr., Granbery, Marache & Co. Lawrence Parker, Morgan ley & Co., Association. is President Stan¬ of the * Volume 131 ■if > Number 5442 ... The Commercial and Financial Chronicle ... (2997) Govt. Securities as Vice-President, and Company, New York Let with the same our little cash hand on in pockets,, and another moder- ate amount in checking account, and busi- a All of us, both persons Su* " within and j days or a few weeks, keep that amount readily a lew to this' month'sfood bfll with money expected to become available next when year, endowment an SrrshforTnslanceWment matures, tor instance. oolicv But requirements for cash may vary widely Some of them are routine, regularly occurring, and experience soon teaches when When much lies total liouid vour resources is required by Federal authorities to be at least 6% of your assets. How much more than stitutions, will consider to be «««««♦ .... .„ij ^ ^aT ¥ Slder. Actually, u.. in- pru..... — For one example taken at just happened to ran- SomfarelesfnTedctabifbufsWi predictable, but still eral qllAumrl tin fh or for with with o a U. S. and Treasury and Fed- only - nonmarketables, hejd also, 13 which held ments at all. run T-» ii - small, it neces- is relatively tie, sarily follows that tne more pro¬ ductive portion of assets must be large. Because of the leverage involved, the yield on the liquidity position can have little effect upon total earnings, again, let us institution has total of $1 000 00o. Ninety per- Over-simplifying imagine assets cent your of the total is in mortgages, 5%, the remainder is in - If those As you all know,-^rms are replaced with shorter U. S. Treasury bills are available, maturities which yield only 1V2%, running from one to 91 days; cer- the total retUrn is $46,500. That is months; notes, which mature in five years or less, and bonds, which may be callable or noncalL able before final maturity, and month, less/ $1 250, or about $100 a question, The bef0re. than The latest issue' of this credit rating T" concerned. FedBank consoli- is Loan Kome fl H * 1 V"\ »"% If * gree j think, it may be. csabt'°" L™"fthfuquid- £be smaller the size* I C* . ** ■ ' • .. • .as ^ Total hokiings of governments? dated notes, which may be also ^tS'rbe Truly "liquidinvestment TTTkVi v ol' assets Lelegathm ehf bl.e.£orup to a Port£oll°s, pres- eral policy ..mowhu tit-. y°ur year and ba/e of investmen than b/4 ot assets aggregating maturities to held ment 1 were anj 4 ketabl 57% nonmar- market- wer€ ables This decided show to seems rather a the preference for 47 J ranIpH gen- might to arae or jjow theS™ a, 1 4<W around *. cert.hcates awutme same oi//% arouna that . a "ifearV^BUb lately be ou'tlinea someWhat ,tte.immedikAfter estimating your ^65%■ certiftcates about the ate cash requirements-day io day ha mar- ketable type, and I must say of is whether the added de- course, 0f liquidity, which means, of safety> is worth the difference in which may have .any or no ma-: your particular case. Very often, eral Loan Journal") LoanFirst Fed- The Treasury with the majority. the Associa- here I agree Department seems Savings and nr-i1 marketables? 21 turity. govern- no sition, which earns relatively lit- earning era^ Home Loan Bank securities, tificates, with a life of up to 12 ¥ ¥' *tot°&*u5taFat 40% it probably differs fairly widely from one associat.on to another. it in the "National Savings be allowed nonmarketable between V" for^your^indlvfdual sponsfole take may a position and your total If the liqudity po- uidity liquid assets. that marketable securities , are secljrities are long-terms, yieldpreferable to nonmarketables, the jng gay 2%% the return on next question is, what sort of tQtal asSets is $47,750. If the long- last December revealed 20 which ••••■•<■" The amount of operation this But arket. to the relation between your liq- ^Assuming we are persuaded government' securities. which are marketable, and U. S. ments, the interest income which savings bonds, which are not. they may have produced in theA sample of 151 associations repast will be an inadequate sub- cent*y surveyed as of the end of stitute. m , Marketable? or have decided how ordinarily must be you cash tween of your liquidity reserve (I mot/ vv, the in tew days, it is certainly more cumbersome and* slower than arranging the sale of marketable securities in the market. Another point is that savings bonds cannot be used as collateral for loans, and still another is that accrual of interest stops; on the interest date last preceding your decision to redeem them before only marketable securities—that is, be- d0m they J sold then held, the choice for the remainder acr0Ss borne ai e Jess kk;k;kk Nonmarketable these must be met and how much thov ■; converted then does not meet these require- try to figure out what is nesses, relative maturities but which can be into 1%% notes and maturity. according to its prospective needs. Reveals factors reason a eye on income." prudent to confine portfolios to short-term issues, i keep an relative securities yields, it is sometimes possible to improve both liquidity and which should determine classes and maturities of government bonds held for liquidity, and holds present outlook makes it to of " cash ; and and lucks ratio of liquidity should be determined by the individual portion adjusting judiciously amounts nonmarketable 2 %s which are not redeemable, though insist, this is only illusI am not suggesting that me should all cut your cash holdThe principle is that by needed? For you and I try be ings in half. pointing out need of liquidity for savings associations, Mi. Van Cleave discusses the relative liquidity position which should be maintained, and the place of government securities in the liquidity position. Estimates average liquidity is now abcnt 12% as compared with a required ratio of 5%. Con- Why is liquidity would raised from $2,500 to $2,625. you Aile; •; nevertheless iricome bation. Assistant asicciation bonds yielded only 1%% instead of the 2%% on the longer bonds, the By ROBERT VAN CLEAVE* C. F. Childs shorter these If bonds. Liquidity Savings Associations Assets of c 13 Xi • more are choose to we Sbey^s fn oe , among Againthe decision finally yuuis toagreeTafso". You'mayknow/hat uTkm'aT bTof contingent and not precisely to be The associations at the end of 1953 few weeks, invest the remainder in Treasury bills. As f remarked a ca»e». spec.nc minutes uKas^ available three forecast. ances cases* before, these canwith sold on a few be ihe proceeds noticej specific u. -Rnt DUl Wilkes-Barre, according to the statement puuuaucu by x i.coIpublished uy President O'Malley as of the end of last year, held 10% of its assets in cash and nearly 18% in cash and securities—that is, liquidity was nearly three times requirements, e h bal required during periods of m money and a fair may degiee Of remote are Others Othc accuracy. . _ time, and in prob- in abihty and in amount. Nevertheless, the prudent man does not these neglect needs, cash are only though they even I think there which within for liabilities are three divisions the liquidity needs associations should be considered. First, you of savings and loan need money in the till, day's business operations. for the Second, need cash balances on deposit with other institutions. They are you Hon of M1C just Blaraii«H for average about more twice than 6,000 was requirements— roughly, 5% cash and 7% government securities. It seems to me pretty clear, however, that the smaller the portion of your assets held in liquid form, the more truly liquid they ought to be. If we are going to operate pretty close to fully invested positions all the time, it must seem like only commonsense to take fewer risks with the safety the ine of OI issuance issuance notes was Treasury xreasury savings savings discontinued at the end October, 1953, and since then those outstanding are being retired as they mature. These notes, 0f trniHp g }de gV0e- anotber fundamental princi*,T ®?o£bTeturn f™^a moment savings bonds, were , nonmarket- on drawals in happen to be larger than has been All these considerably in provided for in the till. needs pie vary may amount. may I suppose that more peo- demand eash before holi- day week-ends—or, at least, may \ Then is there class third a of for" liquidity. That is the longer-run contingency. It is the possibility that at some time in the future there may develop a need an What Form for Liquidity? The institutions — a withdrawal which may continue for some time, and which may com¬ your pletely exhaust cash your bal¬ ances much actual of decision about liquidity your position should be held in cash and how much in securities is again some- thing that must be made individually. The average, as I noted nonmarketables these may seem super-cautious to in this way with representatives of a growth industry such tion of ahv asset withdrawals, gree rent and to pav the off net minor de- to curcash needs has of liquidity related and seasonal proved sufficient. Nevertheless, there is still the that at some time in possibility the unknowable future it will be liquidate earning assets. When or if that time comes to necessary must be able to liquidate, quickly, surely, and without considerable loss.' If the securities you s*v£,gsDnand Loan"*League, Ohio. • th1 Cleveland, ojO'ering of these shares for sale, or an offer to hity, or a to $2,500. If liquid might be just $50,000 in you hold shorter, bonds, you perhaps as cash Ahat is tainly. $150,000 of 46 solicitation of an offer to buy, one But been Vitro Corporation of America Common Stock (Par Value $.50 Per Share) Price $23 per share the throughout level holding period, he takes a loss, Results of comparisons between the losses in that in the might vary been bonds market, and nonmarbefore matur- ketables redeemed ity, have marketable the with period for Copies of the Prospectus may be obtained from any of the writers several under¬ qualified to act as legally be distributed. only in states in which such underwriters are dealers in securities and in which the Prospectus may which the comparison is made. This much can be said, however, which marketable There have been bonds also sold to periods in after demand is made for redemp- tion. Cash can be had somewhat well off with only more quickly, it is true, for the and page 160,000 Shares matur- realize cash would have produced a profit, whereas savings bonds redeemed after a short period of holding must always and necessarily result in a loss. And a marketable bond can be held to final maturity just as well as a savings bond. Furthermore, right now the yields on savings bonds for short holding periods—out to about 10 on two factors, (1) your own past or 11 years—are considerably beexperience records, and (2) the low those available in the market, economic outlook. There are some There is another drawback to general observations, however, nonmarketables, which at some which may be useful if they are times may be highly important. kept in mind while making your Marketable Treasury securities decisions. sold today means avadable cash Consider this over - simplified tomorrow—indeed, in a very great and probably exaggerated ex- many cases, particularly those inample. If you hold $100,000 in volving Treasury bills, cash mav cash and $100,000 in long-term be had on the same day they are bonds yielding 2\k%> the $200,000 sold. Savings bonds, on the other liquidity position yields a return hand, require a period of waiting more the funds on of such shares. The off ering is made only by the Prospectus. Blyth & Co., Inc. a of ,«^ni8ddr^s%by Mr: Van< have Continued ity." moment ago, is nearly half and half—about 5% of total assets in cash and about 7% in governas yours. Caution certainly can ments. You are the best possible be overdone, but in moderate judge of your own requirements, amounts it has been found to be and you will get the answer with good medicine for nearly every- pencil and paper, your records of one. During the postwar period last years' operations, and your there has actually been little or- forecasts of the; future. These rio need to resort to the liquida- forecasts, naturally, must be based It argue an besides, I intend to buy and hoiu sold how to possible It. is sometimes argued that, U1 sustained net, over-all, withdrawal of funds from important bearing on the dis- tribution of the liquidity resources as between cash and securities. is don't have time to manage a portfolio of marketable securities, and, the liquidity position, and this has ing be drawn This is not • higher. and the like. They can instantly if net witha day or a week should purposes, it ' any able. bring less cash in to you—than at other times; and probably withdrawals before Christmas run still clearing, for settlement p th® Mowing busiNot at all infrequently ness day. remember, were for two or years maturity, and, like you possible view, cersurely some time might be devoted to marketables. Perhaps the manager's program might allow time in about the margin which we do maintain. same ratio that marketable bonds It follows, also, that it tne high- bear to total assets, ly liquid position is small, the As to holding them to maturreally productive assets — that is, ity, that may or may not prove to the mortgages — necessarily- are be the case. If they should be rerelatively large. That means that deemed before maturity, the holdwe can afford to accept a consid- er gets a considerably lower yield erably smaller return on the in- for the shorter time held; or, if he vestments constituting a part of prefers to regard income as hav- needed for some Investment Series D bonds—the, W. E. Button & Co. Eastman, Dillon & Co. White, Weld & Co. Francis I. duPont & Co. Ilemphill, Noyes & Co. F. S. Moseley & Co. Tucker, Anthony & Co Schwabacher & Co. Reynolds & Co. J. A. Hogle & Co. Paine, Webber, Jackson & Curtis Incorporated Bosworth, Sullivan & Company, Inc Goodbody & Co. 4 William R. Staats & Co. Boettcher and Company Butcher & Sherrerd Moore. Leonard & June 29. 1955. Blunt Ellis & Simmons Baker, Weeks & Co. Bathe & Co. Fairman, Harris & Company, Inc. Lester, Ryons & Co. Hill Richards & Co. Auchincloss, Parker & Redpath Sutro & Co. Singer, Deane & Scribner Stephenson, Leydecker & Co. Chaplin & Company Lynch Arthur L. Kay, Richard| & Co. Wright & Co., Inc. «v 14 Tl.e Commercial and Financial Chronicle (2998) First National Eank and Trust Co. of Tuckahoe, since News About Banks revised , the capitalizations of Company proposed of managers Gerald has Couzens,1 President of bank, and Andrew Wilson, Chairman, and Joseph E. Hughes, President of The County been elected to the Advisory Com¬ of the 3% dividend rate. The June Trust Company. mittee of the board of directors of 30 disbursement will be the bank's enacted by State Legislature pertain¬ ing to Expressway bonds. measures Chemical Corn Exchange Bank of 236th consecutive dividend that 87% of Central Na¬ tional's 141,000 shares and 81% of New ment. It has missed R. President ard and Oil former Vice- operation, Suman, directpp'*of Stand¬ Co. (New York, it Jersey) announced was June 27 by N. Baxter Chairman. Mr. Suman, established in dend 1, 1859 with $1,892 in the accounts re¬ from will serve the Oil Standard Oil, also special consultant to as and Gas Department * % of Trust announced tion of Co. C. Vice-President. dent, sources issue York, the is associated Herbert the with Trust G. Bank the N. Depart¬ Schoebel First of were the at Trust we who Co. in close Mr. 1948. First Suffolk the merger that item. details The Bank Schoebel of name of the not were earlier our Suffolk of Bank, some which First National Huntington just prior to the consolidation had capital a member of The a board our of May 5 isspe, the approval Leyden, County N. N. the Leyden Port the Company of quarters of National have of the As noted in company. trust June 2 our 2562, the Lewis Trust Co. recently in¬ its capital from $150,000 page the company. * * Miss V ' Maud the consolidation Gallagher, the first employee of the Franklin woman Pavings Eighth will " * '/ Bank of Avenue retire century and 42nd private was York par half and a the last six Presidents of this to "..v" * first mutual savings bank than more bank 200,000 received dends for 136 At the Board ft of on June 28 June 16 our announced divi¬ receipt York, of of The increase its the all common effective Jure 27. is in were assigned John line with Assistant Cashiers. of Washington the of price been Heights of The * on June of Dime Brooklyn, of 24 Y., that a The Dime of will SO, The revert paying to Bank Dime a by fully on May 13 to stock¬ on the of said this that of on With at had the Oaklyn office, J. Boyd Morris, as Trust. The the director, a State 4 bond¬ to pledges to con¬ gasoline tax of a cents Greenwich long so - as any bonds Killingly outstanding. main the re¬ Executive Com¬ D. Rothenrel, Director of the Oaklyn National Bark, will also includes be a The director of the enlarged bank. recommendation to Camden rate being 6 cents per gallon. (3) The Treasurer is authorized ask for the of vote a the holders outstanding Greenwich the - $100,000,000 Killingly Bonds to first lien the on State's tax. the Public well as Works the as Commissioner Treasurer. The General (8) increase in stock common of institution of 100,000 shares, 27,500 of which will be issued to shareholders tional of Bark The merger. the to Oaklyn Na¬ effectuate « the balance of 72,500 the stock, Mr. t^tal capital of Westchester Westchester plans new at White for office at the opening 361 El- Avenue, Hawthorne, N. Y., July 1. Mr. Manager of Mr. Grenci Tyner has also the the Hawthorne office. has been Assistant Manager of the bank's Eastches, largest in South Jersey with capital resources of approxi¬ mately $12,500,000. sis rected the fix to the Highway Commissioner and collect such ter office, and has bank, in the offices been with the of the former $ * , Ned of Feldman, Vice-President Administration for Sidney Blumenthal & Co. Ire. is a revised Declaration. Bond financing: of issuance free Fu¬ roads by of Highway Fund Revenue Bonds having a lien on the gasoline tax equal or pari passu with the remainder of Greenwich the and way other any pressway est in the Bergen Trust Company, located at 26 Journal Square, Jer¬ sey City, N. J. Upon completion of the transfer Feldman was dendt and a of control, elected member of the board of directors of the bank. gen Trust in 1929 to Company take of the Bergen moved to Mr. Vice-Presi- its was The Ber¬ organized the over business Savings Bank, and address present in main as * The * promotion executive officers * the Commissioner, upon the of engineers, to be the highest tolls which may be charged without reducing aggre¬ advice gate and revenues suitable traffic. The which provision also of of Continued three The on key Phila- page 36 allow for commuter General Assembly Highway authorized the Commissioner to increase tolls on existing parkways and bridges. (9) The Bond Committee asked Lehman the Brothers, who managed which underwrote the group original Greenwich - Killingly Bonds, to assist the State Treas¬ urer in carrying out the program now authorized by the Legisla¬ ture Committee. the and Frank Morse, of Lehman Brothers, who has been senior representative of this banking firm in connection with this " legislation, told >. the Committee Board finest, ible piece is that this modern most the flex¬ and of legislation for high¬ construction that has ever been passed by any State. ther that stated will He fur¬ legislation the doubt be used no model a as other states in the fu¬ ture and complimented the Gov¬ by many and other and ernor the officials State Gen¬ Assembly on their under¬ standing and bi-partisan coopera¬ - leadership the of eral tion on this very difficult legis¬ Bicker Sales Mgr. Of Milwaukee Co. i MILWAUKEE, Wise. — Edward G. Ricker, Jr. has been appointed sales of The manager a announced would by Joseph - Bonds Milwaukee Company effective July 1, it was T. Johnson, re- ' succeed will G> mediate recently issuance He President. prior iien. Fred cf Mor¬ who ton Highway Bonds, it did es¬ tablish a financing plan whereby such bonds may be issued in the State future after further authorization. i-pn The was sion. Fund Revenue Highway Fund W i Revenue of license The fees. and additional for expressway bonds which enue may is limited by formula under which the prin¬ interest charges on all cipal and the of not can pledged exceed gasoline ceipts of the preceding 5C% tax re¬ (6) The year. Governor and g. Law. i Ricker, of the late G. president Ricker Edgar, death in & 1940, is a Country and Cornell University. sentative. He is f School Day After with a re¬ 1946, he turning from service in associated o until his graduate of Co. Milwaukee became n Ricker,former Ricker, Jr. waukee Company as the i Invest- t Commis¬ Edward rev¬ be issued future expressways bonds son amount Highway Fund Revenue Bonds s c o n s Mr. gasoline tax and also from motor vehicle ap¬ pointed to the Bonds would be payable from the The sales Mil¬ repre¬ secretary of the, Treasurer Wisconsin Semi-Pro Base ball Com¬ the mission and said that they regard legislative orog-am as fur¬ nishing the-strongest type of se¬ curity for all Greenwich-Kil" ingly bonds Fund be as well Revenue issued in - as for Bo^ds the 6 cent future. may Creen- gasoline tax is expected «o $42,009,100 ;ard the li¬ produce cense fees a member of the Citi¬ Governmental zens He is a'so reau. a Research Bu¬ member of the Highway which wich-Killingly Expressway is es¬ timated to be self supporting. The $13,000,000 annually. University, Cornell and Milwau¬ kee Clubs. The mem - Milwaukee Company is a ber of the Midwest Stock Ex¬ change and has branch offices in Chicago, St. Paul, Madison, Green " ing * ex¬ determined (5) Although the General As¬ sembly did not authorize the im¬ (7) 1940. on by be wich-Killinglv ber of a group of investors who recently bought controlling inter¬ future be may as Killingly Bonus permitted. Only ihe outstanding $100,000,000 Green-' would mem¬ a tolls Greenwich-Killingly Express¬ (4) The State would then issue such new Bank of will be the "" Assembly di¬ lation. the remaining bonds needed to complete the $398,000,000 Green¬ wich-Killingly Expiessway under Trust shareholders is to authorize an the sioner of Finance and Control and way Effective new the become of interest impose least at ture will the appointment of Gino Grenci, Assistant Cashier, as nual of announced semi-an¬ basis, instead of quarterly which has been the practice since the first quarter of 1951. This will result in further economies in date share follows: Capital stock bank's wood of a that per subscribed. completion Brooklyn former policy of dividends the National Plains, N. Y., has announced Beginning payment June of President Tyner of the National Brooklyn since the fourth quarter of 1953. with the dividend shares new (715,$5 par), $3,578,750; sur¬ plus, $5,174,375; total capital and surplus, $8,753,125. divi¬ paid $3,- 750 shares an¬ dend at the rate of 3% a year will be paid to its 313,127 deposi¬ tors for the quarter ended June 30. This is an increase in rate of % of 1% from the 23/4% to to resulting from $22.50 National is as Savings N. bank completion of holders of record of Raymond Tyner Trustees (1) tinue to President of the Oaklyn National This certificate That * nounced M. Westchester, that of the issuance Eank R. stock merger value offered of Branch. * merger after operate Tuckahoe, N. Y., which took place j right to acquire. All preferred April 11 of this year. Mr. Tyner i stock of the Camden Trust Comalso reported that the additional jpany still outstanding will be re¬ 102,250 shares of stock at $5 par tired. The merged tank it is said a * will preemptive McCaffrey, formerly an Assis¬ tant Manager, was named Man¬ the Oaklyn Westchester County Na¬ .shares will be offered for sale, tional Bank of Peekskill and The ]present shareholders of Camden Crestwood National Bank in : Trust being given A. ager ap¬ former in T. District, John H. Early, Fifth Avenue Branch; and Serge J. Hill, 42nd Street Branch. Joseph G. Goetz and Robert P. Graham, formerly Official Assistants, were appoint¬ ed recent Bank Dimon, Head Office; Caribbean page D. C., of a the 578,750 by the sale of First Assistant new are of holders: to approval and which Governor, the Comptroller,, the Attorney General, the Commis¬ . entitling most Vice-Presidents, from in Washington, certificate arrangements New issue, ap¬ Gidney, Comptroller of the Cur¬ rency Manager The pointed out that the Gen¬ was measures of and by Assembly, which adjourned Friday, June 24, enacted several voted Ralph T. Tyner, Jr., President of mittee and a Vice-President of the National Bank of Westches¬ ,enlarged institution, and will con¬ ter at White Plains, N. Y., h^s tinue in charge at Oaklyn. George and appointed. have the Assistant Vice- Branch It Bank, Presidents, two Assistant Cashiers one thereto member Bank of New York three Company first eral institutions, subject National Bank will be merged into the 83-year old Camden Trust the regard 2776. serves meeting Directors National City County, to shareholders' Camden with are sis regular of effective, the Bank of thereupon becoming a peared in years. *,• Camden to merge their branch of the Mattituck Bank." An savers continuous Trust Company of Camden, N. J. and of item for whom it safeguards over one third of a billion dollars. Depositors have A ,v;" A Killingly the State in May 1954 in the amount of $100,- gasoline came 3, 1819, in a basement City Hall Park, there 80 New Yorkers banking a $430 million and the * Committee - July 1, 1955, the gasoline tax is increased 2 cents, Camden the from 000,000. close Company Southold in total of $2,807. Today, assets * of Killingly. sold was proval of supervising authorities. Trust & Mattituck, Long Island, N. V., be¬ July were * State Greenwich (2) $36,120). Directors the to Bonds running expressway across of The plan provides that the Bank sixty The continued for Greenwich Fork Bank for Savings in the City of New York. When the bank opened on value (retirable value, par toll miles Long Island, N. Y., into the North The — $15,000 lyn, May 31 the merger of the of Southold, of Southold, Bank * creased Morse issue the Oaklyn National Bank of Oak- As of July 3 will mark the 136th An¬ niversary of New York State's room $901,550. ' v'i • • in¬ stitution. * capital of $1,830,600,; a $10 each; surplus of $2,527,850 undivided profits of not less than Gal¬ secretary had the consolidated in 183,060 shares of common sto^k, at Street, July 1 after service. Miss on of lagher New bank County H. the 129 the Y., branch a into Y., Trust Lowville, issue, to in construction $270,000 while the First National to $200,000. The Port Leyden Na¬ Bank of Islip had a capital of. tional Bank had common stock of $150,000. At the effective date of $34,950 and preferred stock of was Frank 2G88. p^ge National Bank of Lindenhurst Secretary of days. of become issue about item of the the market provide funds An Port ex¬ bonds will Executive by the New York State Banking Depart¬ ment of plans for the merger of the Port Leyden National Bank of he pects to bring anc has been associated with the work of that Com¬ Following Lewis The Treasurer said County $1,432,350; the capital of the First Office Bonds. will directors of the proposed in of Ex- pressway bearing on the consolidation A appeared Chairman mittee. Couzens Mr. joined the bank staff in 1922 and the Killingly by banking authorities. time, of by the Expressway Bond currence Green wich- June on sale additional $100,000,000 30, following final confirmation of Lin- effective National indicating here are business of authorized an place take to National became available at the time of 1935, was made Assistaant Secre¬ tary in 1946, and Assistant Vicein of First early in June under the was Kennedy, our all of Long Island, which further Bankers Bank the of Islip, Y., Secretary. He is assigned to the bank's Legal De¬ Mr. made in was 16, and scheduled is Expressway trie and name Ottaviano has voted in favor of the merger. become * tf. National denhurst partment. President excess folk National Bank of Huntington, as the to re¬ page 2776, of the consolidation of the First Suf¬ elec¬ Kennedy Committee shares 943,000 Trust's Consolidation under the At June of elected Assistant came Total reported in are While mention of Mr. Kennedy was Corporate ment. County pany Today, The Dime Brooklyn has more than $693 440,000 on deposit in its main of¬ $786,000,000. Assistant Vice-Presi¬ an and bank's New June*. 27 on Joseph formerly of the charter of The County Trust Com¬ * President Bond John that announced The statement re¬ of 91 depositors. * Colt, Treasurer State ported Trust Sloan Bankers organized June was fice and three branches. Chemical Corn Exchange Bank. S. it Yonkers of business Houston, Texas, since his tirement divi¬ a Jackson, has since never who consulting a on pay¬ the . days. Governor Abraham Ribicoff and S. President George C. Johnson said, and is expected to help make possible^continuation John Expressway bands expected Frank Morse, of Lehman Bros., which underwrote initial $100 million issue, group praises various of the two joint state¬ merger Greenwich:Kil.iiigly to reach market in 60 banks, according to a ment dated June 23 received from « ^ s Additional. / , White Plains, N. Y., have approved Bankers and Trust County branches officers, etc. , Stockholders of the Central Na- The new A,' % tional Bank of Yonkers, N. Y.,. and. consolidations new ' Thursday, June 30, 1955 .. $100 Million Connecticut Road issue Planned 1947. iSf « . of Management of th° financ¬ the Expressway Greenwich-Killingly was transferred by the Assembly General from Highway Commissioner State Treasurer, subject to to the the con¬ Bay, Racine and Wauseu. sidiary, L'dgar, Ricker & Its sub¬ Co., is the national distributor cf Wiscon¬ sin Fund, Ire., a mutual managed in Milwaukee. fund Volume 181 Number 5442; ti the Commercial and Financial Chronicle h - !'Tjsji(• * i* :1 ■ 1 against the Southern Railway. formerly the old Hartford-Empire } that special situation invest¬ emphasis in mutual fund port¬ litigation, it became the country's folios, particularly at this time when the have ad/anced much in price. so more Co., glass largest producer of plastic squeeze l-^ttlpc This new product revital- orthodox stocks Says special situation securi¬ ized ties need not be unduly speculative for mutual funds, although their price fluctuations are likely to be wide and more abrupt. went the company, from the combination with During tual my fund fund 25 field industry in the years I have make strides—botn in general kers now devote mu- the seen and assets uj. above are nized the have also situa- them permit investment in special situation securities. purchase as stock investment med'um. and Mutual of Prior to special a any situation thorough analysis is made, a the purchase is based on an bm^s, by providing diversification, ' increase. There are, of course, risks, but these are considered in the analysis and calculation of expected gain. Fur- able chaser Hilton H. Slayton ve s the of American tual fund those in dustries sorbed total a companies which favorable have At outlook and the , in- oppjr- to well-known estab.ished and Frequently, too, preference is given to companies securities national stock are listed a on and industrial securities. •• are many types of favor- ous . or any be sufficient to warrant purchase, regardless of dividends. tion Numer- financially With present tax laws,, moreover, capital gains are worth more to the investor than dividends. in brief, special situation securities are those offering aboveaverage opportunities for price appreciation. It is this type of se- Edward L. Chapman August Huber may ctrfL+ Vnrk Np„, f tho New York havp annnintpd Manner nf Edward . ^ ' Pnd rrIlhpr August curities that professional investors p^pr V; Mr ~<m]artPr will tend to buy for their own accounts to secure capital gains. They include bonds, preferred and common stocks, Over-the-Counter as well as listed issues, and the securities of both foreign and do¬ mestic companies. Although there usually greater risks than ac- other security purchases, ; F Huber Both deoarement rhanmanhave the with f.nnnprtpd company mpmhpr<? Stock Exchange Chanman Manager T bond the Mr 25 Broad storkrienartment tho uppn are Co ritv' Trask Qnenoer of a firm for centurv lu ; . Donald Cotterell Es Wilh Puftiaam Fund (Special to The Financial Chronicle) ANGELES, Calif.—Donald associated LOS L. Cotterell has become Inc., 215 West Seventh Street. Mr. av>c» i v5 m i has A liquidation of a corporation affords special investment situations if the expected break-up in so-called special situations, value of the securities is higher Graham and Doqd in their classic than the current market price, work on investments, "Security The Pubiic Utility Holding Act of Analysis," point out that there is 1935 required the dissolution of no recognized precise definition of rnany utility holding companies, . are many ex- investment reorganization, may not dividends. However, the opportunities for price appreciatjon with" Putnam"'Funh'Distributorsi cent years. Professional investors, however, cellent and such opportunities in special in- strong companies are traded in special: situations need not be only a few of which the Over-the-Counter market, inspecial situation can be mentioned here. Reorganeluding ;5uch well-known names ;VCCUAdUU,j5; « Mtuduun izations of corporations in bank- as Time, Inc., The Chase Manhat- investment is based on complete ruptcy have afforded investors tan Bank, Weyerhauser Timber, and thorough security research many favorable buying oppor- M. A. Hanna Co., Anheuser-Busch, with an appraisal of the expected 41 rpV* Fii P. D vnrl trnll tn tunities. The securities of such Dun & Bradstreet, Travellers Inprofit and the possible risks companies, prior to reorganiza- surance, Tennessee Gas Transmisinvolved. v tion, are frequently sold at prices sion, Aetna Insurance,. Smith, well below their expected post- Kline & French, J. P. Morgan & First California Adds reorganization market value. In- Co., Texas Eastern Transmission, vestcrs in various railroad re- Plymouth Cordage, and The First (Special to The Financial Chronicle) organizations, for example, have National City Bank. . •' LOS ANGELES, Calif.—Edward realized substantial profits in reThe National Quo+ation Bureau exchange. recognize that there substantial Some securities, those of companies in liquida- pay „ abthe diver- a as situation . companies dividends earnings records. whose of /•.« , Many mutual funds make it a policy to confine t.ieir invest-with results gpgQjal vestments, nn Vtunities. ments should be partially in secondary to capital gains. anywhere and simple able offer above-average investment least at overrall There most and risks sified portfolio. seg- industry. time, managers of muportfohos attempt to in- same vest in- to such ther, pur- tin broad ment en- the price expected Chapman situations dividends may Many institutional investors, ineluding mutual funds, restrict their investments to listed securities, This policy may be unduly restrictive. The Over-the-Counter Market is considerably larger than the nation's stock exchanges. An arbele in the Oct. 21, 1954 issue of The Commercial and Financial Chronicle indicated that the securities of about 50,000 corporations are traded in the Over-the- Counter market. Virtual all banks arid insurance stocks are bought and sold over the counter, as well as many public utility, railroad recog- of special merits is investor in special frequently make an speciaLinves The ; tions, and the charters of some of billion, and they enjoy •widespread an funds Mutual $8 acceptance opportunities investment which offer above-average possibilities for price appreciation. funds mutual finding special situations vorable scope, such are everywhere. The number of situatlons providing above average investment opportunities is great. Th~ securities may be listed or unhsted, foreign or domestic. time than and informing their clients of fa- Today the totai to ever tremendous size answer more price of ... , ment situations to be found. funds. purpose Where ; and held in set up and the stock adjusted 8J/4 in 1949 to 491/4 in 1953. -irl_ Holds, special situation securities could be And E. L *10n r^a" Ind"s*r*al. Stock In^ex was 6.35%. The yield on the Dow-Jones Industrial stocks inthe ?a™e Peri°d was 5.28% over a percentage pomt less. a Special investment situations also exist in foreign securities, meluding those of Canada. Further, sPecial situationsi exist not only in c°™m°n stocks, but also in bonds and preferred stocks. In addition, manufacturers of automatic bottle making machinery.: its operations as the result of prolonged anti-trust argues on ^he stocks in the National Quota- Forced to change should receive greater ments mid-1954 the dividend yield : Manufacturing Co. was Emhart President, Managed Funds, Inc. President, Slayton & Company, Inc., St. Louis, Mo. Mutual Funds specialist Spencer Trask & Co. June, 1948, after a favorable set- cate an interesting contrast. For tlement of the company's claims'the 15J£^year period from 1939 to? Situations In Mutual Funds By HILTON H. SLAYTON 19 (2998) ~ville'Railroad-rose over 100% in this year. This was an increase of the three-month period April- 208%. Dividend yields also indi- ^ 01 mDcCIAI 1/flr * •' opportunities maintained a price index of has Roth E. , p with flv ]}empsey_»jweier & q0 and prior thereto was with Keystone Company and was a partner 11 j -i . in Vachoa - and Cotterell. , connected become E. H. Bonnerberg Is (Special to The Financial Chronicle) ST. LOUIS, Mo.—Elmer H. Don- ^e^pr^pp^ef°pp 35 Over-the-Counter industrial with First California Company stocks since Oct. 1, 1938, which is Incorporated, 647 South Spring uchJr^ nLpprhpf/w^Tfrmcomparable to the Dow-Jones In- gtreet. merly president of Olson, Donnerdustrial Index. A comparison of . berg & Co., Inc. and prior thereto the performances of these twoririwas an officer of Slayton & Com¬ 3 With Commerce Trust dices is of interest. The Over-thepany, Inc. (Special to The Financial Chronicle) Counter industrial stock index was 17.59 on Oct. 1, 1938. On June KANSAS CITY, O. Mo.-rJohn Joins Reynolds Staff (Special t.o The Financial Chronicle) SAN FRANFISCO, Calif.—Hous¬ o.u^ .muusuiai De- lty is one tnat is attractive An example of an unusual but which was 143.13 on Oct. 1, 1938, ciated with the Commerce Trust excellent investment is Fojte Min- had risen to 440.17 on June 13 of Company, 10th and Walnut Sts. The eral, which specializes in the proe-y'-.•: :■-. " :V - ' ■/v ■ - ' ' price advances. security may behave duction of little - known- metals, through one special factor another, it offers the oppor- se, lunity for particular independently of general market movements, its profit resulting mainly from some particular cor' circumstance. porate . Among the factors that may create a various special situation are t. ese: ; - Development of new prod¬ (1) ucts / or that create new revolutionize de¬ processes ■ industries /or pressed ones. (2) Superior nies. Revitalization of old, mori¬ (3) bund concerns ments and arid new by new manage¬ policies. Mergers, (4) liquidations. Special circumstances to exchange or sponsorship by a large investment house. (6) Legal proceedings, Lie set¬ large tlement of wnich can be expected and by patient ® " .. investiga analysis,, and the trainedI essary been .. .. to discover suci situations and evaluate their potentia financial . or less interested in special situations, but tnis interest h.as^ mtensi led in recent years. * Professional different $30,000,000. A situation illustrated is investment its for type offer to buy any now with Rey~ Co., 425 Montgomery St* of these securities, offering is made only by the Prospectus. Not a New Issue 100,000 Shares of Royal by Purity Stores, Ltd. second largest oil company, which enjoys the- world's S^rfi'nan^l'^tm^ However, because it was a foreign Common Stock security, its investor appeal in the United States was limited. This true ($! Par Value) special investment situ¬ the shares could be pur¬ at about $30 each in the ation, as over-the-counter market the company listing on Fxchange intil ago. a After Price $20 per decided to apply for the New the York price more share Stock than doubled, to $70 a share. special situations. The Copies of the Prospectus may be stock the securities cf obtained in such of the Underwriters, offer the securities in such state. any state from including the undersigned, as may lawfully market usually has a tendency to a • t . which is engaged jn te_ eious legal proceedings. This is ex- flV . ' . • ' • * company pressedtoin A. G. Becker & Co. the Wall Street adage, suit." This ad- however, can depress unwarranted'y low levejg^ t^ereby creating bargain opportunities for the alert and imaginative investor. For example, attitude, prjces visors, security analysts and bio- dhe bonds of the Atlantic and Dam- an Hannon is tremendous the: demand Shell, solicitation of nor a A. nolds & Incorporated "Never buy into a law community^ has alway more The $90,000. Today, it is approximately undervalue fi- nancial analyst has tne tools nec' .. a ° products. In 1929 the market value of. its common stock was only ate .. ^Pec!a, situations from offer to sell This advertisement is neither an Foote Legal proceedings can also cre- to benefit the company. earthed in of relatively short time correct a condition .... benefited chased ex¬ undervaluation, such as listing on a as increase was a reorganizations (5) pected ' Dutch performance by relatively obscure compa- young, such as ilmenite, zircon, strontium, and lithium. Comparatively un¬ known only a few years iago, ton Kidder, Peabody & Co. June 38, 1955 . Lehman Brothers Dean Witter & Co. 16 The Commercial and Financial Chronicle (3000) I \ The Cosmopolitan Life Harold Allen, special partner THE MARKET... AND YOU By WALLACE lower public enthusiasm for speculative railroad stocks. Over extended ing back imaginative based on period, stretch¬ almost two years, institutional buying willingness to recog¬ changes for the a nize fundamental invest¬ ment maintaining a ratio consistently transportation stantial more York in factors tant firm, rector and Chairman pany is gaged in tie in factors traffic a the have also trend resulted favorable not of The has been that has been The this of prises most group pretty well neg¬ desultory )prformgroup, which com¬ thoroughly sound, but in lected. ance intermediate an not cases road s, spectacular, rail¬ been particularly has marked during the better part of the current railroad many is It year. felt by analysts that this relatively low line, with a large volume of through traffic on which it enjoys a long haul and where terminal costs are kept to a minimum. Finally, it has very little passen¬ ger business. All of these will continue to support a high degree of operating efficiency. ter of fact, mented, As a mat¬ should be aug¬ they the and operating per¬ selling by or¬ naroiU Alien in¬ incorporated in 1923 and H. that Mississippi, Arkansas probably will be Alabama States and first entered politan by the Cosmo¬ Insurance Company Life price-earnings ratios and afford¬ present program ing liberal yields, can not perma¬ nently be ignored by investors. gains additional momentum. Prominent in the group of sound stocks with favorable long- months Gross - term records that have been lag¬ gard is New York, Chicago & St. Louis of Toward common. last price week, the the 1955 12 basis of to the dividend. sell¬ Common a good depths Plate the of 1930s the with respect tinued record only concern to the not power. around preciably and that as in of ever of 12 that months the present through felt con¬ earning reported mind riod deductions the for ferred and May dividend tant to transportation this ously will not rate be an of Obvi¬ improvement during the (Special to The point to some with Harris, West Sixth was third quarter, and with over for as operating better quarters that full high ever expenses as year earn¬ 1955 $8.00. it may Presum¬ Upham Street. & Co., 523 Mr. Bagnard formerly with Fred D. Blake & Co. in the mutual funds depart¬ ment. Prior thereto he had been with Gross, Smith & Rogers, Barbour, Co. (Special was of one the wonders in the blue-blood tion. A pet game among has spectators sec¬ the been figuring out by what percent¬ mostly a standoff among price of $167, with a yield of general run of issues, with 314%, the argument wasn't little continued By May when it progress made raging. generally and with the 450 reached $195 with the yield been in the industrials ting up stout resistance to breakaway new advance. to The BOSTON, Nothing put¬ pretty close to the 3% line it was very popular. Yet this any week duPont ert L. skyrockets $225 line. Planning Financial Mass. Chronicle) A — r m a n d Supine able to the rails despite the heavy parade of good earn¬ perk seemed ings and their ability to push to a new quarter century high which achievement is Merrick, Daniel Pernick and Harold H. Shanks have joined the now a old. was and Standard up Oil among reached of New about which sey, of rumor stock divi¬ without confirmation, was Jer¬ wildfire a 10% a circles dend the the official also able to dazzle the tape watchers with Only a few situa¬ galvanic action that carried it tions with plenty of intangible to the $130 line. aspects had momentary life :js t/' including oil land-heavy ' Some of the other "Stand¬ Northern Pacific and Mis¬ Casavant, Herbert L. Coffin, Rob¬ souri-Kansas-Texas suddenly bobbed which with up a ards" notably Standard of California, and the Jersey af¬ — filiates of Creole Petroleum new group in control of the Planning Cor¬ poration of ?New England Inc., 68 road. A measure of the neg¬ and Humble Oil, participated Devonshire Street. lect for the carriers is the fact in the moments of oil strength staff Investors of Mutual Fund Asso. Adds (Special to The Financial Chronicle) that the average, which oc¬ casionally throughout a year will end a day unchanged, SAN FRANCISCO, Calif.—Leo has done the feat no less than Kuh, Lynn W. Nones, George M. twice in June. In fact, it is the Nowell, William B. Reeder, Jr. and George T. Wallace have only average to put in a com¬ joined the Associates, Mr. liberalization of dividend policies. Paul C. staff 444 Reeder was of Mutual Fund Montgomery St. previously with Rudolph & Co. ojfer to sell nor a solicitation to buy offering is made only by the Prospectus. an any of these securities. ; > t but the group as a to a whole held somewhat mixed Gulf Oil was pattern. able to stand out of the better-acting, in¬ cluding nudging to new highs, as one and Amerada came of out a far long lethargy to, among other this year. things, make the most-active list on a dull day which isn't The utility index, which has a normal slot occupied by this been even more sluggish than higher-priced issue. pletely purposeless day the The * the week With Investors ably such results would warrant This advertisement is neither duPont market * Rails Still L. Bagnard has become associated gains at least through the revenue reach further but Financial Chronicle) latter part of the year but all in¬ dications market runup, * LOS ANGELES, Calif.—William the and stock. sustained the impor¬ ratio common some ad¬ * :jc DuPont the Blue-Blood duPont had the multi-point wasn't enough. level the In¬ on refund increase of 84% in earnings avail¬ able for the ings times in the past, Nickel Plate has expansion an this fall. pre¬ May taken by itself was particularly impressive, with a cut of 2.4 points in the all-impor¬ is felt in been the old on sold is out. As mentioned in this column at have both for interest bonds year that con¬ made were dividend control vantages In this 1954. it is important to bear in that during part of the pe¬ well be increased before the important fundamental net nection may many to share five months of the around through gain was income. revenue ff. average. Harris, Upham & Co. stock. will be ap¬ than were come analysts that earnings higher the earnings of $2.57 $0.76 larger than in the first the (since solved) lack for the full year 1955 the such Moreover, it is the opin¬ ion of most for low a road's centered maturity problems and even — the annual with depression solvency on like road a May -31, $3.00 seems long-term Nickel of earnings 5.5% present for of carried yield This evaluation third wit¬ still undertakes William L. Bagnard Joins higher and so were tax ac¬ cruals, despite which almost a some was increased case bolster a were been stock May five $4,749,000 (8.2% ) ovor a year earlier. All categories of expenses after months ended and through the it some had ing at only eight times for end for revenues even recovery nessed, the improved, as the dieselization program the periods general market heaviness. of type of highly selec¬ age the stock is "overvalued," approximately 141,183. and this has been going ac¬ tive strength for a couple of W. Durham, President, stated weeks has obscured what has tively lately. At the year-end when at raced to around even This The number of policies in force total ran Wonder industrial began business in February, 1924. formance further selling group, it it slim margin. a 1 to with when year $25 by was the tried in the State of Tennessee. was a Even in this and surance last until across tive advances had been scored and after dinary life in¬ It con¬ are indus¬ accident bridge cerned, industrials of business trial few of the blue snipped this week string of nine consecu¬ surance it the as co m-. is essentially a high-speed con¬ there which a ket Board. branch line mileage to support. It In these two extremes in the or*' stocks in the rail list. trast to only of by chips to keep the stock mar¬ This week it on the plus side, as far $65, ignoring en¬ these that relation to the area in operates, but also the country as a whole. It has very little in the way of low density has rallies Di¬ as brought about some spectacular price advances for what might be termed the "glam¬ better, The pattern of last minute banking industry as a whole and a profit margin consistently wider than the aver¬ age for Class I carriers. Many of than STREETE New p a n y, During the past six months or so there has been built up a sub¬ Thursday, June 30,41955 of Allen & Com- St. Louis ("Nickel Plate") . Insur¬ Company of Memphis, Ten¬ nessee, announced the election of ance New York, Chicago & . ' Harold Allen Director : a . ' rail so recently, has managed to avoid a standoff by a penny or two a couple of occasions, but that was « * one Amerada the i holder s of * undoubtedly the stock-split the title for the post-War II era. it came to matching It was split in 1946. 1951 and performance of the rails. again this year, but the magic nearest the . Pyramid Electric Company Convertible unlit December 31,1960 (Par Value $10 per Share) * * seems Spotty Leadership Leadership occasional blue a leadership falling into low-priced issues as Callahan Zinc, Ben- Mining. United Park City Mines, and Avco. Sus¬ guet Copies of the Prospectus may be obtained from the underwriter only in States in which.the Prospectus may legally be distributed. S. D. Fuller & Co. 39 Teletype AY 1-4777 June 30,19 >5 Between the in splits the issue doubled price or better. * * * Aircrafts Coast Aircrafts erally easy continued but buck the trend were gen¬ able to couple of showing tained interest was 'in the any significant change of very best grade issues and a status. The Stromberg Carl¬ few specialties including son-General Dynamics merg¬ Evans Products which ran up er, approved this week, was excessively at times. The im¬ hailed briefly but there provement been Broadway, New York 6, N. Y. thin since other chips being pretty much solo performance and the volume worn high of 1952 has inviolate. stood spotty, the eruptions in the was the hands of such Price $10.00 per Share to have the all-time 75,000 Shares 5% Cumulative Convertible Preferred Stock sje in the issue enough to make it didate as one of the acting issues of the on a without has wasn't a can¬ better- year occasions up to here. The stock hadn't sold to it. much follow-through Among the other defense sections was the prevalent weakness in the tone ship- building shares which a high as $20 since 1949 and rather dramatic turnabout to only reached the 30's in 1946, strength on large gains by the as Volume 181 Number 5442 ... The Commercial and Financial Chronicle veloping. Warehouse-pier issue, New had their Lead and which countries, the Britain of the mid¬ PAUL By ' EINZIG Ascribing much of the recent rising trend the London Stock u / on and Anaconda in the coppers also alternated on * • * The chemical : V -'U K[r; ,;••• u -L ON DON, situation, of causes the on apart from a couple of the soaring items in it, wasn't overly impressive. Hercules and Atlas Powder, Monsanto was Chemical to came toe extent .of these .v* * * atively. mod- , buying f although wildcat strike troubles presumably prompt¬ ed some liquidation in Gen¬ eral Motors which- sagged a at the Chrysler's contract expira¬ tion had little apparent effect. Steels were highly nervous pn occasion, which was also f issues 1950 were none warrant to a * * * s resulted a the is concern K their of not British is, with purchases ctorlincf" coincide on a really jn Sussex no with because to'their in- that industries should be it is the unspoiled rural of Glasgow. And the bareUp areas lar remedies to correct the balance privacv the long run built have interference primeval terests footed in barbarians of Lancashire Sfion?Viw Iiirii hur sh0Uld aPPreciate the advantages nf Sv of creating there a textile indusWn.ihl Srefvtry inwhlch m due course someof tries"!!, holders. thonrn in the foreign in vilt 1*1 Iv/l market, and could the affect for "official" demand a exchange VaALilUligC Vlgu not, therefore, sterling dollar rate, Their only effect was a rise in the quotation of security sterling which, in spite of the absence of any official support, rose to the , vicinity of the officially supported transferable sterling. This may be expressed in this at any those the on types of sterling any has constituted ling is step towards de a long even this diminutive discount will disappear, so that all types of sterling will be quoted within the of range $2.78 $2.82. to then be market and convertible into For dollars in the even ... n , w . 0 „ . , absence of any official the Since financed American should be solved m some different idea. In reply to arguments against Amerioan - investmpnt in Rritish , T I WO of American all, throughout the 19th Century ing participations in industries all Hemphill, bers "Vm ¥I of effect the balance v O V Irom of the Noyes & Co. change, have announced that Albert D. Wedemeyer and James K. Allardice have become associated ain bad acted against the interests be countries whose industries British capital had assisted in de- is°a na^ve o" thai aianapoiis^inay isanative^ottnat college.. pf ^abash r,.iv Kn wmnd Rmadwav revived Naw n a ra . currency countries, members of fhSchanll ^ _-.1 Ritz Mutual Investor Doolittle Co. to Admit N. Albert L. Y.—Doolittle & Co., Liberty Bank Building, mem- bers 0£ the New york gtock gx_ change, on July 7 will admit Roy W. Doolittle, Jr. to partnership. Ritz is engaging in a securities business from offices at 76 Charles Street, New York City, under the lirm name ot Kitz Mutual Investor, offer to sell nor a solicitation of offers to buy any offering is made only by the Prospectus. of these securities. NEW ISSUE 60,000 Units Personal Industrial Bankers, Inc. Each Unit consists of One Share of $1.40 Dividend undertak¬ Prior Preferred Stock (No Par Value—Stated Value $18 per Share) and purchases One Share of Common Stock (Par Value 10< per Share) operations Price $23 per controversy L. Briant G. Badger, Glenna urer; President; Vice-President; Tanner, W. Bliss, Secretary-Treas¬ Ralph O. Bradley, and J. directors. Mr. Tanner merly officer an Robert J. Keith Hansen, Fellmeth, of Flegal & Co. was for¬ Melvin G. American capital in the form of investment in British an influx of Unit Copies of the Prospectus may be obtained from the undersigned only States where the undersigned may legally offer these Securities i in in such compliance with the securities laws thereof. industries. One school of thought would enthusiastically welcome this so¬ i would further postpone the evil day when the government and the nublic will have to face the realities of the lution, because Johnston, Lemon & Co. it June 24, 1955 mi, 0 solves. BUFFALO, The the Mr Hewitt, ^ SALT LAKE Byron Vnrtr an niemueis ut tne payments does the nf i place since the War, but participa- Lauderdale & Co., w be g dissolved as of June 30. Mr. Wa ,nnn Unc. industries is apt to create in lace has bee ac !{ie lon^ run more problems than- vidual floor broker. This advertisement is neither an actually arise. Nevertheless, publicity given to these op¬ erations Hemp! Mr. Allardice. with the dtanapollsM all CITY, JJtah—Mid over the general principle whether America Securities, Ino. of Utah it would be a satisfactory solution has been formed with' \pffices at if Britain's adverse balance of 26 West Broadway. Officers are payments were met by means of •mem- New York Stock Ex- tion ..... capital in existof American . t * . . • J throughout the 19th Century Brit- sterling re¬ the possession these of XT Son toBritMn^oTeUou"^; Hewitt & Co. to be Formed Ne^e' 8fai"lS&e°£ wUl ^3. .fritV over the world so that to argue that the present operations are n disadvantageous to this country is equivalent to an admission that V holders the question the „ With Hemphill, Noyei Such operations have in fact taken Hewittts a partner in of out already in sources , R- Poland & Co., . Inc<» and P.rior thereto was a partner in Heimerdinger & Straus. open in Com¬ fee ^ ° d ay» ® City. Partners of the new firm quartfs are entu^iLtic abou^he Britain which would result in an willbej. fb-tHewitt, Clement ing to that effect. the . Greene ofyrnVntk^dRficuIties College'^s"* run, sterling would practical purposes not Mid America Sees. City. ? with 37 Wall Street, New York Mr. Straus has recently pany, loss bare fraction of 1%, and possible that before very a seems of Curtis J. Straus has become as¬ sociated ^benXrSy the ever, in reality, Britain is an in And sooner or later facto convertibility. At the time of on Straus as an discount are J. advantage, because cessation- of any substantial regarded it Curtis wUhtheJirm as registered reprewere a true picture then Mr Wedemeyer who is-with the a" ?? S? of American ^capital firm Was ngt^n, D, C., o fice, S?®?Mimarv Britain would stand to ben- Military Academy t West^Pmnt. f* by American investment in wa* ® * T;" //R b^, of nef operations did not, -Rritish investors had heen arniiirtherefore, British investors had been acquir- sterling peak for the with ■ formerly held by Americans, W *vi of the Chronicle. They are presented as those of the author only.] time purchases ofXsuleofBriti7hsecurt mdustrfes t^ta^t lhah result v: not necessarily of Caledonia resent to their ties worked dozen and a half views do disfavor penetration of the London exploring the neg- of cannibals The The with the rest in the video group holding about midway in their year's ranges and seldom featuring on - either strength or weakness of any pronounced nature. [The with deoosits the paid with the was ceeds year article security the can on to the fact that tlm niH nf "coonritTr has points below its view in¬ 19th in the minds jungles or oil ri«ht by dividend payments to Ameri- of question Corp. featuring on the minus writing the discount on both secu¬ rity sterling and transferable ster¬ on reduced activity this around which have reached fantastic pro- 'hot ^ey' which would be to"" wither wnventert mimeXVut>^n« l^o purchase price t i Zenith up Downs. With somewhat heavy hu- participations in British industries by American investors the result This having regard side week. who British during the which again would be a dead u from the point of view of . There would, of course, be every ency during the period of these Britain's balance of payments^^Justifmat:iorr for the establishment nnrr»haCAC Thic i* Nntwithctanrlinir thK manv °t certain American industries in 11-most-neglected title would seem to be held by the television issues with even the more active Radio The Tm ing of British securities sterling displayed a distinctly weak tend- Dividend payout* de¬ clined Steadily from the time of the split up to last year's outright omission. It had held in a scant two-point range all this year until its outburst ; those iected U^r-prospecttve capital;^precla-.t«curitte^ the stock this week. with abroad suburbs, ^ Notwithstanding American buy- capital appreciations in the long more split. , the 1946, such investments are liable to be British balance of payments but realized. Since American pur•-« vi ; with the yield on the equities and chases are confined to good class active prominent than White Sewing Machine which gained some 20% on one runup. This issue has been sinking to a lowly estate regularly since it last enjoyed enough popularity in of of point of view natural long-neglected whirl, a loan WArt American private investors'whose possibili¬ Quick Whirl mills American in ; British; the investment assumed the shape advantageous^ from:1 of the acquisition of permanent is economy. effect Rumor a controversy the * and gave some Einzig industries' v ties. the American; investment of attributed to strike pro- nr««inn Dr. Paul The imminence times. analogy from time to time in the form of steaming ofister up sterling and would obviate American the need for drastic and unpopu- most bit that further J enlarge scale, it would help to bol- for; the were-quiet so for scope the present American opera- e*\ad:e* little x?: of ' portions. Should there be an intionsiwas rel-; flux of American capital through overall. Autos industrially, little Greene and Gompanf : is fully mg -total turnover tion of Colonial sterling balances mor it is argued that the kilted evidence ;7: Century Century conjured shares^.«Com-;:MarshalI Plan, IJ. S. military aid, and more recently an accumula- were that J pared with the largely given to alternating moderate • strength with comparable weakness Exchange Stock London American buying of good class industrial Chemical and Virgina Caro¬ lina The ; backward -J . into British industries the somesituation. Ever since the end of what unrealistic picture of tough the war, Britain's balance of pay- American engineers building a ments received external support railroad across the impenetrable ^ Eng.—One of the trend recent rising the is vestment aid in .fhe balance-of-payments, it has in it a threat of "hot money," that may cause future trouble. may weakness. 20th of development with the aid of out¬ side capital. more r of .the developed {)';?{ Exchange to American buying of industrial shares, Dr; Einzig prominent on declines of siz¬ i - sees in this buying a good effect on "official sterling exchange." able ; proportions. Warns, however, though American buying of British securities Kennecott - dle development there Youngstown Sheet rathe Curtis Straus With tury Britain invested in the indus¬ Steel, National were argument Rising Trend of British Equities troubles, including Reynolds Metal, Bethlehem this overlooks is that, while 19th Cen¬ a trial Metals What Potent Force in U. S. Investors York Dock, couldn't offset. 17 (3001) Washington, D. C. 18 The Commercial and Financial Chronicle (3002) « Continued jrom jirst page development has followed sensational development in this / . market until there wonder. What is (As We See It But Federal Reserve authorities were not born yes¬ terday. They know that to do what is humanly possible prevent anything in the nature of a really serious de¬ pression it is essential to prevent the economy from get¬ ting out of hand on a speculative boom more or less cer¬ tain to be followed by a bust. Whether or not the politi¬ cians clearly recognize the fact, these authorities, af they are to play the role that has been assigned to them, must take an interest in any excessive speculation or even undue exuberance on the part of the business community. Dangerous inflationary "developments must of necessity be their worry. Current conditions at least raise the ques¬ tion in a good many minds as to whether what is popu¬ larly kpown as inflation is not now just about upon us. What natural, then, more or inevitable, than that even begin to wonder what the Federal Reserve people intend to do in the premises, if anything. Now, in contrast to the Britain of the latter half of the 19th century, we living primarily in agriculture and manufacturing along with such services as are neces¬ sary either to facilitate these basic occupations or to sup¬ plement them in order to provide the goods and services we want here at home. Such activities as these spread all over the length and breadth of this broad land of ours, and naturally are not in ordinary circumstances so much under the thumb of central banking authorities as the normal operations of the London financial center were / the make control of our the Bank of England. Of course, central bank policies have a bearing upon business opera¬ tions at any time, but the extraordinary concern felt at this time about what the "Fed" may do is an outgrowth -of special circumstances. The present boom has in a sense been force fed from large injections of artificially created funds and special credits of one sort or another. It has been permitted, even encouraged, to develop on such doubtful bases as these until it has- assumed large proportions. Naturally enough in these circumstances, it also rests in the first with unusual degree upon "confidence" (better stated, a kind ^of boom of psychology) induced by the attitude and promises politically minded men in Washington and others much under their influence. In such in one circumstances, it is always dangerous to take steps which might under¬ sense mine this inflated enthusiasm. 'We have typical manifestation of this sort ofTlpng in the stock market at the present moment. Thanks to in¬ flationary policies of the past and to the enthusiasms that have been generated among the rank and file, sensational buy favorable At any rate, as soundly based market which began a market stock market has money is fuel to the flame of enthusiasm well at times be not may could be. basically as a become now it as which one feeding enthusiasm to the business community. So is neither of these securities. any an The offer to sell nor a solicitation offering is made only by the of offers to Prospectus. \ Dominican Republic Inaugurates First Display for Trade Fair The first window display in the States announcing the United Dominican Republic Peace Brotherhood and Free World, Fair for of the Ciudad Trujillo, Dec. Feb. 27, 1956, was Dominican Consul 20, 1955 — opened by General Toledano, at Lionel Perera, Man- directly for the carrying stock—thanks to or of purchasing purpose credit to all other over easy in margin requirements ineffective in have been con¬ informed no Reserve could put the Skids on doubts person this market on it world? or without wide is part it hold it repercussions Of course, we are not in in moderate the business prepared to admit that it of the duties of the Federal Reserve authorities to decide when stocks take to have its this could even to seems too are high or judgment imposed be one too low and to under¬ the market. But of the functions that have in some on is, once the the momentum not in the business course be reversed without undercutting course only of the stock market, but elsewhere community? be asked about Federal Reserve is same many the The other question must of areas which the charged with controlling in these days and times. One whether this is with one all this of them or is not "gateway" cities republic will promote participation by Ameri¬ can enterprises and travel to the Fair for business and pleasure. specious booms— do not undertake to managers vide of controversy things. as to It has long been what a central powers controlling the fluctuations in business. matter of great banks have much It is fairly gen¬ larger degree than they have to stimulate business when it is in the doldrums. of The way to limit the depressions is obviously to limit the booms which all without season But that limit¬ if it is to be done at which those who to eliminate , in are some controlling fluctuations in busi¬ seem to think we have found a way Haina free port and ship¬ building yard is being constructed. "We the crossroads of two at are continents," he said, "where there unlimited are commerce oppor¬ tunities and tax franchise laws to will be investment. our The Fair first-international ex¬ position, calling attention to this and our plans for the future." The Dominican Fair rates 25 prosperity of of years commemo¬ under the Generalissimo and progress leadership Rafael L. Tru¬ jillo,-the Consul General said, during which the republic has paid in full its foreign and public debts, amassed continual favor¬ able trade balances and remarkable United accom¬ and advances. The Government States labor and free world nations will exhibit nrivate numerous as industries. Blyth Group Offers Vitro Common Stock Blyth & Co., Inc. yesterday (June 29) headed an underwrit¬ ing group offering publicly 160,000 common shares, 50 cents par value, of Vitro Corp. of America, priced at $23 The share. per which partici¬ development of nu¬ company, in the clear energy and and new ad¬ vancing technologies, will use about $1,825,000 of the proceeds to its prepay V-Loan and 5% second mortgage note; another $45,000 will be used to prepay a 41/2% mortgage note; and the balance will be added to working capital. depressions obstinately refuse to recognize. At the very least we can say that any effective work minimizing business cycles must embrace the whole of into $50,000,000 of the danger of precipitating the very sort of de¬ of the difficulties about look to possibilities at Rio port where a mammoth pates pression which it is the aim of all to limit. These ness ravages excesses nearly always precede them. ing has to be done in good investors and trade in erally agreed that they have the ability to stop booms in pro¬ opportunity for business¬ an the brief a that the Fair will ceremony until they have got such headway that they cannot be stopped without reversing course Caribbean humanitarian that we other and the will say—look good to the the Republic Information similar displays in New Center, plished trouble exch¬ money Dominican the matter has been permitted to gain the current can Robles West 50th Street, New City. According to ; the encourage quarters been assigned to the system, and the question headway, Oscar Brookes Father Toledano said at success¬ The question is so. Dr. 48 ange, York men do so, restraint, the Federal the skids quite fully should it be determined to do could that Rev. and to Could Put It But fra York trolling it. public policy and not expect the central banking system to do the impossible. f ' 9 strong is this wave of optimism, and so independent is a advertisement ." it of loans made course This as more men " under apparently construed better business, have added which to business who have begun to many segments of the business world—that successive increases They Know j good a are prospects for world peace, and repeated report? of ever but to keep business generally on an even keel, and in particular to keep as nearly all of the people occupied at good wages as possible. Furthermore, the Federal Reserve system is quite generally regarded as possibly the most potent instrument for the purpose in hand. In particular, this system is expected to prevent anything in the nature of a depression, and, of course, in times like the present not to put a damper on the "good times" that are so dear to the hearts of the politicians. • Thursday, June 30. 1955 ... Vitro operates plants production of uranium for the concen¬ trates through chemical processing through a subsidiary, in the acquisition and exploration of uranium properties. of uranium The and, ores also designs, engi¬ company and manages construction, particularly in the fields of chem¬ neers NEW ISSUE JUNE 23, 1955 V ical processes, metallurgical plants and nuclear power reactors; and CAPITOL REEF URANIUM CORPORATION in research into chemis¬ engages "Disposal of government power projects, let us say, might benefit the private utilities but not the industries dependent on low-cost power. Curtail¬ Company has mining interests in Wayne and Garfield Counties, Utah. It is in the business of explor¬ ing for uranium and other minerals. ment of the T. V. A. fertilizer program fit some might bene¬ fertilizer firms but not the farmers. 300,000 Shares of Common Stock * * try, physics, electronics and elec¬ tro-mechanical equipment. Total A per $13,679,921 and net earnings $68,224. This Copy of the Offering Circular May Be Obtained From i Franklin, Meyer & Barnett Members 120 New York Stock government enterprise is inherently bad and pri¬ vate enterprise is inherently good."—Representa¬ tive Chet Holifield. Just I * - In Washington, 821 — 15th St. N. W. must such be essentially expected by political any group, attacks as such the this of $7,250,637 parable period were with total and a net com¬ year ago. New Firm Name Effective Company, July will be with New known so- President; only creeps) of the New Deal. President. offices York as Lepow 1955, underwriters at 4, N. 42 Y., Lepow Securi¬ ties Corp. called Hoover Commission which suggests the least withdrawal from the creeping socialism (if it really 1, dealers, brokers, Broadway, RE 2-5788 compares earnings of $85,246 for the and Exchange Broadway, New York 5, N. Y. . * extended indefinitely. I cite these cases merely to suggest that the incidence of opportunity for private enterprise cannot be de¬ termined by adherence to some simple formula that Share Offering Price . the; four months ended April 30, 1955 were revenues $1.00 "The list could be for revenues as Officers are Monroe George E. Lepow, Nelson, Vice- Volume 181 Number 5442 ..»The Commercial and Financial Chronicle . Nuclear-Powered Locomotives Long Way Off Fcrman H. Craton, Marketing Mamger of the General Electric Co.'s Locomotive and Car Equipmer.*u Dept., Erie, Pa., told the As- Public ciation of to and only well the railroad Railroads a Craton said. on 22 at The Montreal, Que., while be work to the help 4.5 be F. H. Craton r dictea that or rail¬ ob¬ being 8 power plant the past decade, that graphite- a reactor can compared with kilowatt-hour as mills (steam reactors have e- turbine) electric, diesel-electric, electric locomotives provide insurmountable ated since 1946. Another water- been plant of the grew 60% 1950. over and utility net income boring unit electri¬ Kansas, natural gas in oper¬ to burn diverse "The hard application motive facts atomic of power, G. E. will build that are any to energy for that matter or an to any private industry, must be justified by its promise of eco¬ wealth Edison Chicago area. atomic plant water¬ for the Common¬ advantage over other means doing the same job," he said. He added, though, that if atomic locomotives ever ural years. sources, , for to run second to anyone." pointed out that G. E. built He the first motive, mainline electrical the first electric Rollin Bush Pres. of N.Y. Rollin gas Bush, First National City Bank of New York, has been elected President of the Municipal w — - New York for the Forum of — for E.'s G. said situation Bary tur¬ the Co. neither locomotive the of according to Mr. Craton. because the of need This is Dean Witter & Co., Secret ary; Rollin C. Bush application of nuclear reactor to son, locomotive. Many people, he believe that present predictions of sizable reductions in reactor power plants will prove out, Even if Bank, feasible from for cure-all every economic power and tion agriculture, and excellent trans¬ portation facilities, combine to give the area a broadly based and stable economy. With only 21% town ness, the in the climb rapidly after World War II, is continuing to grow at a rapid pace. It now totals approximate¬ ly 900,000, a gain of almost 100,000 since the 1950 housing units were vthe :area in 1954. The rapid pace of last year has accel¬ 10,000 built erated in months creased building 1955: for the completed 17% over permits Thus the company in¬ last and were up 24%. is planning for current This is not an tional NEW ISSUE he said. generator is ing stations. users But it can't diesel-electric with pany's has been added & to power Joins power small generat¬ is Chronicle) now with the electric move near indicated, seems the balance and a of the return on stock has The reflecting equity funds. been selling offer of $2.40 is 16.7. price-earnings ratio 1955 price range is the The 451/2-39%. Fausnaugh and Zahler With Ball Burge Kraus (Special Financial Chronicle) to The CLEVELAND, Ohio — Hal A. Fausnaugh and William P. Zahler have become associated with Ball, Burge & Kraus, Union Commerce Building, York Midwest changes. Both W. F. of members and were & Kurtz the Stock Common LOS Co. Aaa loans bank C. to The Financial Chronicle) ANGELES, Calif.—Roscoe Williams, Jr., has become as¬ sociated with by will Jackson & an become Westheimer be not on & power will officer of He generated powered plants to in sell additional pre¬ With Shearson, June last year the LOS company ANGELES, Calif.—Robert is L. in Missouri and Hammill & 90% of the Hammill (Special to The Financial Chronicle) Kansas, and about amounts requested Jurans now with or solicitation of solicitation is made an Avenue. offer to buy, the securities described below. only by the Offering Circular. ; v Stock executed Co. and help (Special pointed atomic J. by, and Offering Circular obtainable from, McDonald ' Aetna Securities Corporation to The 111 Financial Chronicle) MANCHESTER, N. H.—Chester Greenier is with Draper, Sears & Co., 922 Elm Street. In the past he was with Gordon B. Hanlon & of Boston. June 24, 1955 Broadway New York 6, N. Y. Shearson, Co., 520 South Grand Offering Price: $2.50 Per Share With Draper, Sears Co. be competitive Co. & Rutland perhaps early next year, the associated the goods and people future. Co. South Company. " Orders Webber, 626 Mr. Williams was Spring Street. formerly Paine, Curtis, Gallagher-Roach has Ex¬ formerly with Paine, Webber Firm (Special COLUMBUS, Ohio —Harold B. Hackett New R. C. Williams With applied for electric rate increases or re¬ cently around 40, to yield about 4V2% on the $1.80 dividend rate. Based on the estimated earnings ferred stock. dispose of, to increase rate Southwest- American Houses, Inc. reverse General Electric expects electricity Barring unforeseen fac¬ further gain in earnings iri a 1956 Ohio (Special to The Financial Chronicle) for years, Mr. Craton thinks the tors, Ohio —Claude J. Company, 51 North High Street. of ' will locomotive in rated are short-term company may 120,000 Shares with Gallagher-Roach and Com¬ is true pany, Lincoln-LeVeque Tower. diesel engines Mr. Hackett was previously with requirements, Mr. The said. out that credit." the Co., Na¬ Company The Financial to COLUMBUS, com¬ While predicting that, the atomic atomic bonds probably be resorted to and later when you try to use railroads terest " —| Financial Chronicle) Joins Ohio Bartlett turbine for locomotives or scene although sooner or help swell "in¬ charged to construction— City Bank Building. (Special finds its long-term place applies equally industry, and other large Craton the year, offer funds stock; CLEVELAND, Ohio—Edward J. Wardwell source has its limitations and and steam large adjustment for financing as earlier $16 million,, Moody. No definite plans have yet been made for further financing, In on later these should equity 4'/% funded debt, 18% preferred stock, and 35% common stock equity. The com¬ on, appears earnings & Doremus staff of J. A. Overton today's economic choice for pro¬ ducing electric power for cities, for mon proximately but allowance no raised by the current sale of com¬ issue, capital ratios are ap¬ first four homes the locations. as new in to avoid traffic con¬ so as bond Over census. and well Kansas City which began to area, work maintenance With pro forma the stability. Population metropolitan for gestion inherent* in present down¬ shares in this company its warehousing of materials and Supples, industrial busi¬ from of possible negotiated, weather which might reduce air conditioning load, etc. cool Chemical Corn Exchange were elected to the Board (Special to The energy well in this case. $ pete enter¬ budgeted being now Some $11 area. been the revenues capacity million has this work in 1955 through 1958 with about 40% of it this year. The company is also decentralizing its construc¬ City prises. Thus manufacturing (with¬ out any single important indus¬ try), wholesale and retail trade, of the increase presumably the management is making allowance for the wage increase which is He said that the rule advantages eventually motive every application. and distribution system in the Kansas includes diversified rapid increase in and air-conditioning loads, the company has embarked on a major program to improve packing, grain milling and bean plants, oil refining and Such a design standpoint, he warned that shouldn't be expected to be a power, Fisher, of Governors, nuclear-powered loco¬ a becomes it The W. J. A. Overton Adds motive Industry area. the residential potatoes, livestock. coal and mineral re¬ furnish a stable economy the from the to servative side but Company, and Donald C. Patter- correct. that O'Leary, Eastman, Dillon & Co., Treasurer, Robert pointed Edmund and G. heavy shielding against radiation in the a An¬ derson, space, for was Vice- Edmund early atomic lack Co., George design consideration is B. President; regard to cost. an & Ingen elected the peculiar abilities of atomic energy demand its use mitigating against Van & tary where The prime F. S. L. Walter J. electrical manufacturing industry or the sit¬ uation of rail transportation can be compared to that of the mili¬ without of Smithers Dempsey, that in de quette ica. Craton com¬ ing year, suc¬ ceeding Mar- bine electric locomotive in Amer¬ Mr. are including gas, miscellaneous C. diesel-electric locomotive, and the first soy Municipal Forum loco¬ equipment successful Crops it. Due meat commercial intend surrounding in character, wheat, tobacco, corn, fruit, soybeans and completion in approximately five show promise of feasibility, "the Gen¬ eral Electric Company, with its history of progress in the field of transportation, certainly does not Kansas City is also the metrop¬ of the great agricultural re¬ Company in the It is scheduled for These combined with oil and nat¬ nomic of lines. gion coal pits, which can be plant at very low transportation cost. The resulting fuel savings should be very sub¬ stantial and will greatly outweigh the added expense involved in transmitting the power to Kansas City. olis in the sta¬ much strip trucked to ways, the city is served by 12 development, major trunkline railroads, 14 bus lines, 147 truck lines and 7 air¬ cycle boiling re- corporated size will same unwashed raw nearby recent Craton said. A 2,695,- on $2.33 on 2,450,000 shares in the 12 months ended May 31. This estimate would appear to be on the con¬ to be made for City. share common compared to Practically 60 by kw new shares 000 Montrose 1965 or 1970. plant it is planned to 800,000 At the 1955. earnings of about $2.40 about new located be be added about 1960, and among the metropolitan areas of the nation, and is only 85 miles from the geographic center of the riSht in the reactor, eliminating a heat exchanger and improving economy. This design will be in¬ atomic to tion may be expanded to as as the G_E- dual actor, allows steam to be produced for during second 100,000 kw completed at Hawthorne Unit of the second Greater Kansas City ranks 17th addition will a miles southeast of Kansas also electricity and Mason City and en¬ In 1955-58 year 000 kw until at the virons in northern Iowa. country. the was Station Missouri in was Station, and the company is now beginning construction of a 175,- Missouri, and neigh¬ communities While property slightly less in 1956; the for Recently population of 750,000 in a Kansas City, and supplies company city to locomo- competition tives share a remainder of agement estimates growth. new probably exceed $100 million. period same 50% total increased by the same percentage. the next 25 years. The "harshest reality" ' is that imposed by dollars and cents, Mr. may 670 For the full year 1955 the man¬ added to plant in 1954, $28 million will probably be added in 1955, per coal Graphite-moderated, gas turbine increase an The nuclear modern cooled p is $22 million of proximate $51 million (91% elec¬ tric, 7% gas, 2% miscellaneous), During plants. overcome. e to in considerations K ' atomic kilowatt-hour and first Mr. produce electricity at 6.8 mills per economic must noting moderated in future, space of Anniversary of advances during Mr. Craton said to railroads it era >1 electrification In will put that in new served this year. nuclear energy eco- electrification," 60th road that more railroads herald American about the increased number of shares, the could of to 1955, only 460 will be received in City Power & Light Company substantial future of equivalent to on By OWEN ELY Kansas Kansas City Power *& Light Company is the largest of three nomical electric power from the electric utilities bearing the name atom might be of great impor- "Kansas." Annual revenues ap¬ promise April per After taxes this would be but tance sociation June Utility Securities ■ in <^|<Jiar||q?timated $4 million annum: within the next five to ten years. "This granted were 4h Forman H. Craton, marketing manager of General Electric's Locomotive and Car Equipment Department, says that any application of atomic energy to motive power must be justified by its economic advantage over other moving forces. <3003*'19 • -f trr' The Commercial and Financial Chronicle (3004), 1 €3 . . Thursday, June 30, 1955 . v *■ s-M-.'i *v Continued Opposes Fulbright Bill ■ vigorous objection to measure which would make all requirements Vigorous opposition to the Fulfcright Bill (S. 2054), which would make all corporations with assets in excess of $5 million or more work ber of and raise concerns between a num¬ this character is made holders sub¬ formation of ject the available to their customers. to rules the f o x c h a n g ev" Commission just if they as listed were ; on the would imposition of registered by It alike. exchange, a n was regulation Com¬ trol on can industry. dens of this ation in of New York, I J. Thomas of Miley who In billion of con¬ and and interests of investor alike," Jefferson Thomas Miley, of Vice-President Executive and Association, in letter a Chair¬ to J. W. Fulbright of the Senate man would a industry ah unwar¬ burden of regulation government control which, and firm and of Citing the introduction of simi¬ bills first — 1946, and in 1941, next die on "appropriately left to the vine," Mr. Miley said Association u "The opposition, vast involved use majority of quite (Special to scribed adequate change system many in new Such in .an would cases accountants and re¬ addi¬ bookkeep¬ ing staffs of these companies. of Homer I. — (Special and other Glen munities and to the smaller SAN Kyle com¬ business inventory All oI these Shares appears NEW Financial is name of from Street James in a offices under — a ... nation has record book. James will be securities at 3024 lion. firm the be . . venture the future. on feel I will Kyle Company. any as Year by the rewriting outside the to be provided new stocks. petuate the $380 billion. We will to on the corporate billion, and 82% '51 to over II period, equity new While this the twice not may Company, Inc., the longer think I But than better that. than the doubling every 10 need, in the is than more which will twice be spent equip¬ prices, the change estimates that $375 billion will be Share S. corporation Stock a Ex¬ staggering by needed for the plants, products, tools and jobs required .. can no more debt mean will This that external needs. offering to the billion in new equity and 1965— now of about $7.3 billion average a f- It is going to be under increasing their to pay net a of percentage of pres7- greater portion income in the form to when almost nual four rate. the times recent an¬ Perhaps it is too large we ought to come as order, but an close it to we as of stockholders And can. broader ownership can help make this possible. It can provide com¬ only This 10% be was re¬ adults, they would invest money in common stocks. extra, said To a great extent very system must adu- our share the: blame, for not giving more people: a better grasp of the economic: community they live in. But we— industry and the securities busi¬ ness—must also share the respon¬ sibility. In recent years have: we undertaken to help fill the educa¬ tional gap. the In public first efforts While rather we: theory to» than specifics. theory is frequently ob¬ difficult to grasp. and tion our to talk economic Economic scure we will convinced the are benefit from na¬ broader > shareownership, the individual in¬ in investing his funds im terested is less common stocks with debt-equity ratio the capital with needs investment Can concerned! the; or of industry than precise story of what hi3; a he means personally income earn . . . Can . protect his purchasing power What the are wards risks How ... about and . the should . he- 'l\ . re¬ be go- investing? '• the What Exchange Is Doing To meet the needs of the investor the oped single Exchange has devel¬ continuing a that is information precise, specific: and-meaningful to the individual program as as make it. we can The media and! using — films,, advertising, booklets, a speakers'" bureau, and work with schools; and that we are colleges—provide helps us direct flexibility a the proper- story to the proper groups. We are, of course, defining the fundamentals — the meaning of panies with the markets they have stocks of who good are for the these com¬ prospects products service and panies will be producing. And it can provide millions of financially able Americans with the chance to channel tive their money into produc¬ enterprises, and thereby stake direct and personal claim in our a nation's future growth. Some Progress in Ownership and investment. phasizing the seen job ahead—and its —how do we go potentials about accom¬ no Well, some shareowners have been added new the last three years. this same over the next If steady we as¬ progress 11 years, our stock¬ holder family 11 million will embrace about people. It is exciting to consider that these millions of people shall share billions dividends in the our additional that our next decade. overnight miracle, however, going to broaden the ownership base. Through employee stock programs and Plan have been the Monthly Invest¬ important techniques developed for doing the to recognize that progress to date has been very weighed small indeed when against our retaioefL and - the needs of wealth our our as a people, economy. a cost, man a trained economist in to such great lengths to tell gone a prospective customer: "We want business only your the . . money if you're able and appreciate: only if you're willing . to seek information and sound ad¬ vice . . and . only if realize you must periodically review your you decision." We ~ ; have a final aim that tran¬ scends the basic theme of broaden¬ ing ownership. We that should everyone realistic satisfies his personal without program a that requirements/ not, a part of that is perfectly clear while owners develop regard to whether stocks It gram. that convinced are investment are, or are %o is ment without to buy good stocks. There industry I know of that has the risk ready? em¬ rewards and! and professional advice readily to spare made al¬ one million are principles that govern sound! investments, and we are telling people how and where they can get the With help they need. sort of progress we We the plishing broader ownership? What have risks doing, are we are order the size of But more. fighting tipsters and rym<xr-moneers. We are stressing we is Now that we've deal great need not be Obstacles the a available, Look at a and bonds, the role of profits and dividends, the methods; sound Broadening dividends, and the^ nation, the savings of earnings moneycan of techniques large order; it represents a the growth somehow, because it always vealed through equity mean year. that future has been in the past. goal our to reach the economic levels pro-^ job. Through mutual funds addi¬ jected for 1965. 1 ' V. tional people are participating in As corporations expand they are indirect ownership. But we have sure for of national in¬ growth will make possible in the Using these figures, and accept¬ ing the Committee's assumption of U. should we We years. would an between chance of corporate take year the Joint Committee's this year for new plant and ment. Share) a To do so would that corporate debt in 1965 sume alone, $60 billion for plant equipment expenditures, ac¬ amount like seem raised amount 1946-1954. - This securities great deal, it is actually more than in $18 billion. will raised per¬ debt- Eco¬ see $30 mount we we worth $40 billion will be required. have, according to Report, a gross national product of $535 ' billion, 50% higher than in 1954. We will have disposable personal income of and WHitehall 4-4200 if Even three-to-one equity ratio of the post World War nomic rise ought money by the issuance of common 190 million peo¬ Joint Committee profits attitude needed tended strongly that much very of - FREDERIC H. HATCH & CO., INC. by fixed costs that limit their flexibility. And it must not be so great that we damage the concept that individually we are filling to labor force of 76 mil¬ a We we ap¬ The America of 1965 land of a ple with the known. shall we constant . 10-year pe¬ a exciting as do-it sorely needed for their securities; it can develop new stockholders yardstock any growth Report. St., New York 5, N. Y. sav¬ have created—will to be entering year Capital Stock Wall prof¬ individual atrophy. cording to 63 corpora¬ strapped . we or By almost pear 300,000 Shares per We have Opportunities to Broaden And Offering Price $1.00 paradox Ownership 1965 per is going to test whether the idea— particular form of venture New June 30, 1955 (Par Value 20^ . attract dividends « Here America in 1965: New Growth having been sold, this advertisement a matter of record only. Pinon Uranium our are . as ISSUE they equal 79% America; we are a come. I submit capital nation, yet we are should be to raise giving venture capital fa' at least 50% of our capitalism Chronicle)- Calif. engaging that to flourish, Kyle Opens DIEGO, Nichols and I. the the com¬ panies. financial is R. Building. would burdensome to high do that was raised, compared to the nine years after should riod of James for individuals want. The next decade Hess, 216 Kurtz St. The demand ings into the production of goods CHARLOTTE, N. C.—John W. Bradley, Jr. is now affiliated with Harris, Upham & Co., Johnston representa¬ personnel, damaging in smaller to of urgency the prospect for growth and to the staff With Harris, Upham "Publication of salaries, partic¬ ularly those of sales "The own Chronicle) Evans has been added un¬ accounting tional personnel on the be most Financial Ohio un¬ during prosperous: times logically we should be re¬ ducing it. We are, finally, losing sight of the basic idea that Denver. the rigid framework pre¬ necessary tives The WOOSTER, ac¬ by the Securities and Ex¬ change Commission. quire in obviously major role. But it must not a so tions when Colorado concerns counting systems which might not and should not be required to con¬ form to play be will nation¬ a public knows what common stock Our people have a let-George- challenging— more financing yet Homer Hess Ac?ds he wrote: postwar pattern with dangers, or do we debt business we inherent psychological distaste for debt,:, public $80 we are adding to corporate securities between a its Outlining the basis for the second-class status. Mr. n and in the past conducted his investment mis¬ in piling up simply had to be to . tion again has been taken from the mothballs and brought before the Congress." Depart- National Bank cyclical pattern the proposi¬ year slowly the Benwell F. ex¬ of choice. Any effect in venture formerly with Oswald that "in accordance with the five- of inherent War peculiar was e Do some¬ was matter money World Munic¬ t. on —with each years a debt net 37V2% Manager the Benwell the Frear Bill of 1950 as side Vice- as ipal in be result, debt financ¬ a as much The President holders in the affected companies. lar of paying equities could meeting the pent-up goods and services. their with along with costs, would be borne in turn by investors who are stock¬ total. off; divi¬ much as certainties too i ated s s o c a ranted heavy the of equity become financing fell to only 25% of out¬ has American of 75% new has subordinated Benwell F. the burden on pediency Oswald that adoption vast segment declared its impose on the times need a n n ou Committee, for avoided. As Club Building, raised? be to the sources. bond interest could be written Corporation, Denver the $80 Mountain givings about the dangers and — Securities it is of is. cational relatively easy to interest rates were low stock yields were high; while stock¬ companies." DENVER, Colo. How follow outside from results Exchange indicates that less than 25% of the and sounder—directions? were issue; Ml. Stales Securities States of primary convenient vehicle, and ing during those industry and Out outside money, debt provided accounted Bonds Oswald Benwell Joins Washington on June 27. Declaring that the proposed leg¬ islation "is contrary to the best raised its approximately new most dends Currency, which began hearings on the measure in Banking Financing raising financing ate Committee on institutions. required for capital expenditures $160 billion—will have to —some be the Several Stock public opinion survey. One finding that strikes close to home 40% of the $375 billion over built. the ago re¬ ma¬ wide earnings supply the same proportion of funds as in the post¬ war years, we estimate that a little have we released tained Debt of Ameri¬ are Retained chine months "Balance" regulation and control fall upon the shoul¬ these years nearly one-third of it had to by the general public Postwar The costs and bur¬ investors holders in into strike out in must turn ders n c., the Sen¬ government 1954. and and financial bring about the heavy burden of vast segment a dustry Associ¬ with a and and In¬ merce less of Commerce and Industry Associa¬ tion that the proposal contained in S. 2054 is contrary to the best interests of investor and industry E 1945 some poured in the be supplied "It is the considered opinion Securities and optimistic, earnings and depreciation allow¬ ances naturally accounted for much of this sum, but neverthe¬ in¬ when materials of most billion were American industry $240 these on the ished Commission problems in their purchases sales and the particular hardships smaller than 500 stock¬ of more 1 , likely to take any long as Joe Public as sponsibility in the economic Corporate Capital Needs ^BetweenNowasd 1965 corpora¬ than stockholders subject to SEC rules applying to companies having listed securities. 500 not are little understands his role and exceeding $5 million and having tions with assets We 3 page giant steps York registers and Industry Association of New Commerce from pro¬ to us millions of non-share- want to undertake may the risks of stock ownership, seek¬ ing either dividends, capital ap¬ preciation, protection of purchas¬ ing power, or speculative profits, there are additional millions who should restrict their investments to insurance and cash savings. considering the risks, though, do not have to be apologetic In we about tant America's to say future, this, is still or a reluc¬ land of by these corporations^iitperhaps.. And I believe we must be realistic not be as high- as iLhas been in about the enormity of the job I think, to say that prudent com¬ the mon past. But even should re¬ ahead. promises. We have stock an obligation, investments seem to Volume 181 Number 5442 .. The Commercial and Financial Chronicle . (3005) have a way of returning a steadily higher standard of living we can point out that for the aver¬ ... ship so that it embraces the "aver¬ man." age I would like to age, man, ment ment, not exercising good judg¬ other form of investment no offers better growth opportunities for and income, combined liquidity, and low cost with high of purchase and sale. about only to that—as to one it Advocates "Point 5" to Replace com¬ pertains shareownership, years ago a learned capitalism Joe ciency Public understands these basic in¬ which vestment dollars from the U. S. society. About 30 rising young politician deal great a said: V) We confident are that if facts, appreciates fully his goals, and is able to measure these against risks and rewards, don't we have fear to his ability that is "American effi¬ will nor Ralph T. Reed, President of the spirit American Express Co., urges busi¬ ness and government leaders of be by any obstacle; which plugs away with businesslike peruntil every impediment severence has the those been removed; that simply through with a job once to enter the stock must go what is hear in mature fashion the The risk ence he has assumed. * time was was a The of Outlook When talk we have we own¬ right to wonder how much broader it is apt to be. No one is able to estimate pre¬ cisely how should or cur Americans will many own common stock, but "The Public Speaks," some interesting facts: survey, points up •40 million adults think ple should more peo¬ stock; 20 million own would be interested in MIP type a ipurchase plan; and four million non-shareowning families, half of them with incomes over $5,000, actually considered buying stocks last year. Can more Americans af:ford to buy stocks? We have found there are over a million non- ;shareowning comes families $10,000 over have found there professional and We million 5l/2 business To I people who over ,non-shareowners. people, in¬ year. a are reaming $7,500 and these with educational target. 'They represent a group that will have an important bearing on whether not or corporations will he able to raise the equity capital .needed between 1965. and now If industry think we can through has to be shared. business securities its •do full will The happily part—through educa¬ tion, through developing tech¬ niques like MIP which put stock , purchases regular basis with¬ on a in the reach of many, through im¬ services to small inves¬ tors, and through recruiting and training capable young people to proving The in corporate role, intensified and realistic ed¬ an ucational effort, in employe stock programs which have pioneered comnanies with gratifying results, in modern stockholder relations programs, and in equity financing that views both a com¬ pany's irange and the needs/ er some country's economic our of shareownership millions in trast "aid" con depends. At Jive must turn out people understand the world they in, and who can equate eco¬ with * freedom nomic And freedoms. we stant necessity of eral those lessen ment barriers income the to — high incentives for and democracy potent as our as no gains, of the above steps can that cesses must we acomplish it, and accom¬ •think have to pursue our coals much speed, say concerned as I am with though painstakingly, if we are going to keep our essential char¬ as a could ex¬ tourism ultimately government's eco¬ S. already spending $100 every $43 sent by government the curities Company has been formed in the industrialists Officers business. based Kittredge securities a Wm. are the to C. man President; Elmer H. Vice-President, and Nor¬ Mr. Chadwell was can previous¬ and bankers at Blaha & securities Walter H. man "It which . directed them to tour¬ of major tries . . out, Officers R. Blaha, President; Her¬ Botie, Treasurer, and Dr. Mortimer Danzer, Vice-President and Secretary. Mr. Blaha was for¬ merly with Auchincloss, Parker & Redpath. Nassau Shares Nassau-Shares time, Driscoll V , time, he pointed from U. S. tourist expenditures . in Western Europe is SALT Moab estimated $500,000,- Corp. am I have not so immediate with people who the job simply can't be done big and complex to safely broaden owner¬ • • - 363 at South . Shumate III and Tex. — Gaston has formed Versailles, to engage Joins Nathan (Special to The iron curtain travel to tensions, their increase and misunder¬ standing and hatred in the world today, and bring about closer un¬ a pattern "Gradually, I hope we can ar¬ , L'urope offers for other particularly New Branch Office parts Asia of the and the Y.—Oppenheimer, Vanden Broeck &/ Co. have opened a branch office at 103 Far East. In Britain, tourism leads dollar-earning industries, Mr. Reed pointed out. Reed emphasized the role of leaders governments of as well each as country the in Main agement Street of under the Nehemiah Justice Detwiler all business derstanding among peoples. Pattern a The experience of in Fay & Co., 208 Middles Street. hotel industry, and to production of consumer Europe world, fear, and goods. per¬ freely coun¬ LAKE PLACID, N. curtain He declared that this would help not an Opens DENVER, Colo.—Justice B. Det¬ wiler is engaging in a securities business from teenth offices at Street. offering of these shares for sale, or an offer to buy, or a solicitation of any of such shares. The offering is made only by the Prospectus. an offer to buy, * in securities a Kerr-McGee Oil Securities, Inc. is engaging in fices the Officers business Newhouse from Robert are President; President, S. Industries, Inc. of¬ Building. 41/:2% Cumulative Prior Convertible Preferred Stock Herman, (Par Value $25 per man Share) Preston and Reed, ViceDan Bushnell, was E. M. Kiernan & Co., members of the New York Stock Exchange, will be formed July 1 with offices 71 at Broadway, New York City. Partners will be Edward M. Kier¬ nan, and member of the Exchange, Dorothy S. Sackett. Both have partners in James McKenna as may ! legally offer these Shares in compliance with the securities laws of the respective States. ! Copies of the Prospectus 1 may be obtained from only such of the undersigned been & Co. Gregory & Sons Thomas F. Loop Opens NEW ORLEANS, La.—Thomas engaging in a securities F. Loop is business ton from offices in Exchange Building. the - Cot¬ Sutro Bros. & Co. Sponsoring Dealers June 30, 1933 man¬ Friedman.. 450,000 Shares CITY, Utah—Na¬ ( .! Fay Financial Chronicle) Nathan C. rebuild European develop their transportation systems, to revital¬ Secretary-Treas¬ LAKE in a. business. PORTLAND, Maine—George R„ Armstrong has joined the staff o:l Western tries to urer. SALT A* Shumate* Company, with offices at 4524. Saslow, President; Kelsey Volner, Vice-President, and Abra¬ tional ' Forms Shumate Co. DALLAS, namic economic force that has in¬ . coun¬ the tourists Opens formedL business. ton Korman, Utah- has U. P. Annex 19th, West Temple, to engage in a se¬ curities "These statistics," he continued, "tell only part of the story. Amer¬ ican travelers have released a dy¬ Communist from offices at 5 Beekman Street, New York City. Officers are Mil¬ ham r./. ■ 000 this year. Reed lift This is , CITY, is business TL Brokerage Co. with office* securities an •»•'. Christensen North to iifc Joseph principal of tne firm.. ,• LAKE Howard in 1948 East engage business. a i• ■r 29 at Moab Brokerage Formed same new Mr. the bamboo relieve below $600,- offices Street to Opens Sales securities a . securities a grew—from less than $150,000,000 both directions. are the earnings ize the it dropped 1954, with Second South in which . . mit a formed / situation the Europe, which in 1949 received At prosperity them against and with offices at 29-28 CITY, Utah— Lang-Driscoll & Co., Inc. has been* he said. . same that } LAKE spired fortify should & Europe will be under $100,000,000, is, urged contrasted several billion dollars in U. S. aid. pro¬ bring can commerce can At; the CITY, N. Y.— Co., Inc., has business. conducting . He added. Forty-first Avenue to engage in they are earning dollars through American tourism. therefore, a private citi¬ zens' counterpart to Point 4," he ISLAND been formed power a of power consumer nations through Communism." Walter Blaha Open R. . hssist which with Wilson, Johnson & Higgins; Mr. Kipskind was with LONG is portions ly Walter It Sorensen is SALT receiving 000,000, in 1955 it was further re¬ duced to $213,000,000, and in 1956 it appears that economic aid for economic American life to their E. Kipskind, Secretary-Treas¬ urer. the on overseas ism. Chadwell, Ulrich, assistance, but relatively few now gathering of Ave., New York City, on June 16, Mr. Reed declared, "Point 5 is DENVER, Colo.—American Se¬ offices na¬ are a welcome-home reception for him at the Park Lane Hotel, 299 Park Form American Sees. Co. Building to,engage in The free Asia of By a with ac¬ non-military Speaking before 200 M. Center* securities a Form Lang Driscoll Co. 5 backing as foreign aid. nation. years because we've become too Point urgent ern U. Blair West in of Deep Roc\ Oil Corporation immediately,- we business. Asia with the experience of West¬ for 290 at engage Exchange Offer to Holders of Common Stocl{ plished vigorously, because the a way of slipping by. I where area tourists however acter all-out as an said, our abroad to E. M. Kiernan Co. that all be an have cording to Mr. Reed. American are offices Street previously with Cromer Brokerage Co. individual suggestion is nomic assistance programs. He pointed out that American political democracy. Broader shareownership is, in fact, so integral a part of democratic pro¬ or invest¬ investments. There is with principal of the firm. replace economic our strong as he American tourist. PROVO, Utah—Bel-Air Securf— ties Company has been formed* councils must give seri¬ making which, pro¬ capture the interest ofi Secretary and Treasurer. Mr. Her¬ the double tax on dividends—that destroy the the major share of U. S. economic should 1. Keed Kalph three-month of personnel promotional Asia the Focal Point Asia from pansion train Bel-Air Sees. Co. identified Point 5 a develop - thought." States. returned and handle tourists; grams to have tions progressive capital taxes, years to which the world's economic and remove formidable to —to traveler, moved the desire for fun, relaxation ous recruit economic assist¬ our development o£ tourism; —to con¬ urging the Fed¬ government 10 now organize and strengthen agen¬ cies engaged in po¬ other our face last which — political Reed, just - tion process who those —to and knowledge has created a force now re¬ ceive from the Mr. he "The American by dollars United during the also least need for they sys¬ practical," ance." the to is describing the economic are "earned" dollars people inspection trip around the world, government1 local levels, the educa¬ and state red-tape in customs^ border-crossing formalities, and exchange controls; long- third pillar on which broad¬ a of Nat'I Securities activities The - are an In freedom, and with com¬ petition— we are extending tne advantages of ownership with its great > benefits, to more of our people. Through broader owner¬ ship we are on the way towards feel, lies I ef¬ tem—with investors. these serve American of serv¬ —to eliminate move¬ said. tourists which bring of shareownership is just undertaking. Within the framework and too, that the job of seeing •agree, such exchange logical a I step, :necessary it is Stalin. to the base of agreed that broad¬ ownership er the and are delighted are Rogers & Co. Steps to Be Taken ^community with agree of these upper income Americans are primary we ficiency does have a way of doing a job that is crucially important and, in my opinion, broadening can we properly ask in light of our his¬ tory and our progress, "can they •afford not to buy stocks?" I think our help will Joseph are many think once, goods, food, beverage and ice industries; largest numbers of United States of them For of broader a "Point . economic self- Stalin. for Broader Ownership ership audi¬ University students. The speaker was The a climate where free a investments, in ho¬ transportation, consumeir tels, tential of Point 5, Mr. Reed noted "those nations which have had the under¬ take ment particularly — Asia 5" program 1924. group nations in —to it has been tackled." market, to judge best for himself, and to free rive at The pro¬ increase —to consumer • indomitable knows never Advocates stimulation for of "Point 5." success gram would include concerted ef¬ forts: industries; elimination of red-tape in customs; and buildingup of tourism.1 about detoured '' the Foreign Aid Ralph T. Reed calls on free nations to adopt program of self-' help. to substitute "earned" dollars for the present "aid" >>_ - but entire our who make 21 430 Six¬ It 22 The Commercial and Financial Chronicle !(3006) Continued jrom 4 page ' fied. , in Bank and Insurance Stocks — He wants to have confidence and 1954 stock that increase fire and the in there Incentives in Banking- respect. were given in this column figures of number a of in r^r of economic lows. went that larger the of followed through in t we can period trials ie was half of this tion just after the frustrations depression that of the insurance operations companies So far as were but hazard But let ance to so us companies, and true of everybody else, nad to help f.nance t So it is-that there probably has never been a as was was not complete the ^ score of years as favorably as the equity investors, so far as portfolio growth was concerned. In several where there were mergers the data of the two cases prior to the mergers were consolidated. well. Assets on .. Perhaps tic and 27,868,000 7,493,000 177,028,000 Fire Association_______________ 19,363,000 Fireman's Fund 50,919,000 "Firemen's Insurance. 43,044,000 General Re Insurance j 18,676,000 Glens Falls _; 22,323,000 Great American 71,612,000 Hanover Fire 14,180,000 Hartford Fire 105,492,000 ^_f__ Home Insurance 135,908,000 Insurance Co. of No. America 231,030,000 Massachusetts Bonding 1,640,000 National Fire ; 26,052,000 National Union 6,202,000 New Amsterdam 13,217,000 New Hampshire 8,942,000 Northern Insurance 11,800,000 North River 16,776,000 Pacific Fire 7,478,000 Phoenix Insurance ! 68,247,000 Providence Washington...: 4,045,000 St. Paul Fire & Marine 35,079,000 __. Standard Accident—!—" Guaranty Fire Westchester Fire ""Seventeen of has been Thrift A nf with the program of the Chase Manhattan Bank and I hope the details of that plan will inter- est In gist, it allows for a certain percentage of earnings on you. capital stock be to aside set for the stockholders prior to any distribution to employees. It is based formula a which has worked the past several years to over yoliip cAmp fhOQA f/-| JHTirVHO1 one MANHATTAN BANK Request & bank for at sound a and well idea of tion. J the bank , Members New York Stock Exchange Members American Stock Exchange BROADWAY, NEW YORK 5, N. Y. Telephone: BArclay 7-3500 1-1248-49 (L. A. Gibbs, Manager Trading Dept.) !.. ...... - tives." 88.51 elther 2' 4' or W m 6% to participate in the Thrift Incentive 28.48 Plan. 16.97 our 21.52 soon 28.29 The when funds after the mined managed in Department and end profits 24.96 acording important—perhaps tant. knows what " stressing the word "useful- of>'any management, small, is looking the individual who thinks of f0r ideas and or ways of "building bet— a ^ermousetrap." Two years ago we started a. .Suggestion System in our impor- bank ..with cash prizes to all sug- more . t" ' - My observations are born out of 43 years spent in banking—watching and men peak all of gestions adopted -by the committee k3S f°llows: Pi ggestions. It has been a -healthy > and, inspiring develop^ hows the v women human ready £ . .. „ Banks . !. ., ' in his bank.^Inspiration are all quite similar, as ways —from well know. They have sub-- and from the you , „ Their pro- abili- of'knowledge itizenship of the People aspiration' * "• happiness in living. the but deter¬ widely as pie. " Two contribution formula is may runs both management down junior clerk up.' If you have most of the qualities have rather briefly described, „ I you will be happy as a banker. If have given banking a fair but AVte[he the orllVhTu^each of each quarter, 52.74 At member member 52.75 3.28 statement showing the value standing to his credit at the end 52.10 of that quarter. The statement also 10.34 shows 26.43 each end end nf of the the the Fund Fund amount in member receives receives deposited the form a a by of payroll total evaluation to date which in¬ 20.97 cludes 74.78 of 68.25 earnings the Fund. and and The a grand appreciation total maior no for yen treated." of Banks are managed by beings and the atmosphere bank and the attitude of the a officers and clerical staff important spirit in It is each The assets. tomer is the first to sense its are cus¬ happy a bank. any day is different. event of woman '27.65 in bank a mutual effort. 7.69 Our 18.26 two 24.92 Thrift Plan has fundamental is Thrift. 16.61 Plan Incentive objectives. One plan makes it easy The employees to Open ANTONIO, Tex. —Harris with Form Ludlow Inv. Co. SALT LAKE CITY, Utah—Ralph H. Ludlow and Jesse D. Knedsen have formed Ludlow Investment offices at 30 West secu- It is save true a Profit-Shar¬ ing Plan and the larger the bank's profits, the more the employees benefit. The plan itself is a challenge as well as an incentive may and should be a real place stimulus to Every the above Each money HatP date a substantial to rmv ouy a a hnncP house in Finrirfa nr ipMorida or camp in Wisconsin or other spot that suits his fancy, wolf has counting house. should strive to in¬ on .better the rung below occomplishment. work to be the on have you the free a greater knowl¬ business and under enterprise system you may one-.day be the boss. The question is—Will you be a better boss than your predecessor? That is the great non-financial incen¬ Watling, Lerchen Adds .(Special to The Financial Chronicle) DETROIT, Mich. Harold R. Boyer, Jr. has been added to the staff of Watling, Lerchen & Co. Ford Building, members of the — New York and Detroit Stock Ex¬ changes. ,, ready desk next to take man who meets the the tone of his public spirit of his letter teller's or voice or forget¬ ting the platform man—add the the the smile at window—not spirit of the bank. up adds From nothing to its momentum. observation period of years, I over a think the long aver- aSe man or women working in a bank a few wantg tQ knQw and EAST Philips New . HAMPTON, N. Y.—James Co., members of the & York opened i Philips Branch a Stock branch Exchange, have office at the Hunting Inn with James J. Philips resident partner and Frank C. Ryder, Manager. to That pub¬ lic estimate either builds the bank or Jas. over by letter or by tele¬ phone is the bank at that moment, of in his hand at retirement fishing any amount the a in person or the a part of a that niche at any time. The bank is a public service organization. sults should benefit the employees and the shareholders together. plus is The lone man to and ment which relieves him of worry, our Each person should be observant of reduce expenses at every turn and to attract new customers. The re¬ In summary, an employee is as¬ sured of a good pension at retire¬ in person spire the him. year edge .of The prob¬ 18.73 no !? ^ ^ th3t 1°" are a dependable and imaginative member of the staff, thlt each tive! withdrawal from the Fund in the Incentive meet the fascinating business and a 10.96 Thrift y is ren.^.®r l ^ difference human amount, disability. +Vr sa ♦w y bills and the current mthe^^stalment'omyour car. But the joy 20.37 ' f^a"sfer qm,ckluy tq ^elds which lunching together like the First State have major difference hefween hanks between banks of today is the way people are most 22.35 deduction I a 44.69 are a bit critical, disin- P^sident^ftte'First Na" com'irfrom a^la^aUo'nThaTyoC paid 33.98 trial and men "I say Bank each in inventory, values personalities vary as the personalities of peo- bank year— been bank's the to of have the — ^p^s^t^^mode^s dTnoT^r fluctuations 35.45 a _ ?° n^s" in men- " business. h have tioning non-financial- incentives vvhich, to my mind, are equally are Trust own 34.34 Ninth South to engage in "Vm,"'can .u, : ? g' ; °ur bank recently merged. We Now, I should like to de- vote the rest of my time to notes, and securities. . . Another requirement is that any Georgia M. Harris. rtiies busi¬ not be ago which read roughly f,vnrv.M,c. Up to this moment I have been ^eeds.., The dealing with "financial incen- bank,-large ^ems of national security, politics, wfather and seasons are all coritr"ibuting factors. Every man and Company with person banking ... . without hisPway^ wages offices in the Gunter Building to engage in a securities business. Partners are Eugene A. Harris and Laird, Bissell & Meeds the you 18.73 formed g regu- stantial buildings centrally loany cated, impressive vaults, and their staying with the organiza- 'inventories are -identical cash, into 10.32 been in The individual must few days boards which would like to less the capital gains tax, is available to the employee at retirement date. Provision is also made for has better job ahead. well-rounded our advertising, and our •• < >. ♦ desire to make banking and daily *, • * ?>!:living better for others.- These Non-financial Inveotives .words ^must, be backed up by least This eliminates the part help and youngsters; who come be lated program. 10.11 Harris to neighbor-^ment. The boss is always, 12- fw t^ir future and™rHve a°that J? re9°snize the ideas, the year. time 18.88 Harris & Harris a a succeed — have group plans which can, be adapted to fit the requirements of many wants ambitious, he must like peo¬ ple,, be interested in their daily problems, be imaginative and re¬ sourceful, patient, and above all, trustworthy, dependable and loyal. I saw a sign in a shop window fX J " WlllViyW a r-nndH who may have under eonsidconsideration some such plan for your own banks. A few large city banks establish He too hWimH^r WL. number employ of the (Special to The Financial Chronicle) SAN Plan. a regularly and continuously. The other is In¬ * Specialists in Bank Stocks of name of age and must have been in the 31, 1954. Teletype—NY own the Incentive familiar for THE CHASE on given sharing case, it profit a our been of banks have profit sharing plans in force but naturally, I am centive. Circular have has ployee's annual wage. To be eligi¬ ble, an employee must be 25 years years. Dec. banks ...... years, the adoption of arrangement. In 71.04 . to takes ness. own 19,355,000 3,788,000 31,171,000 24,923,000 16,610,000 Security Insurance Springfield Fire____ States an¬ , 20.53 . their on - 4,074,000 ___ States Fidel. & employee which recent in 18.92 ! tax shelter a 5,621,000 Seaboard'Surety United popular .... made 48.49 ____________ United of the most drama¬ one nouncements 18.48 • get can Ko ' Fidelity & Deposit Fidelity Phenix It is specially attractive to the people who make the best progress in the bank. They you 16.80 Federal Insurance feel there is present tax laws this kind of Plan He wants to proud of his bank, his job and the team he plays with. He wants to immediately of course, under and, that a mandatory). is . Sharing 20.00 ___________ is it spent or Thrift a which before work in con- a 28.82 .»__ Bell to¬ for individual. as an feel to sincere interest in a warranted, he wants to happy environment (air conditioning desirable but not old bonus wants au¬ efficiently J™ °i $52.56 _ .- 120 trend amount same f Per Share $31,539,000 Aetna Insurance 28,815,000 Agricultural Insurance 7,999,000 American Insurance. 33,612,000 American Re Insurance....-—-14,783,000 American Surety..... 5,675,000 Bankers & Shippers.... j__ 4,849,000 Boston Insurance 20,529,000 Continental Casualty 37,756,000 Continental Insurance 177,604,000 +As the equal somewhere in the —Increase to Dec. 31, 1954—- Casualty annual committed He sufficient job when it is old the his occasionally that he is doing well or if not, helped with kindly criticism. He wants praise sub- their with wants do be assured much this for contrasted thereafter our vary , out Twenty-Year Change in Value of Assets and Per Share Aetna distinct a Profit on ^ is programs fund sav- shown are to the bank has savings, as well as the money put tributory basis with the employees in by the bank, having the benefit of a group inj am mentioning these details in surance rate. '... the hope that these remarks may so pointed out in the earlier discussion of 1954 results, individual company snowings were greatly influenced in this 20year period by company investment practices and standards. Thus the companies that made bonds the mainstay of their investments units Programs Insurance there and see * did employees cash of either has accumulating as form V providing at least an amount of insurance equal to one year's salary on a non-contributory basis less no period in our history when'the portfolio manager was put exacting a test of his ability to do a good job of investing. As is insurance (at the colossal effort. like age ward underwriting costly to tie fire companies.. what kind of a showing they made in their investment operations. Here their problems wjre formidable too. War disrupted their normal investment procedures, for the insur¬ 2 pension experience our happier in addi¬ and been life but stantial one- were values that became • man's the insurance. have to Life concerned, they had to contend with the bad least until the arsonist got into his creditor's hands), difficult rate conditions, the unaccustomed hazards brought r.DOut by tue war, and, probably worst of all, the inflation of moral benefit is about what Life business a vicissitudes ings that received relatively stable economy witn something approach¬ ing boom business conditions. Surely in this melange, if ever a corporation management was to be "put to the test, this was it! Th^ of would every man- our formidable than those of general business. It might be called enforced ing the period when he could have planned economy; then war in Europe and our own preparation for war; all-out war that mobilized the whole nation; then the postwar inflation; the cold war; Korea; and finally a-return to paid to a surviving children when an em- retired. The experience. and or ployee dies in active service dur- It was brought out record-breaking for a large Material is now available for a span is spouse were year gyration that beginning There benefit on casualty insurance companies. gains majority of the companies listed. 20-year study of these companies' showings. A time length has been taken because it brings in just about The the He thority Financial and Non-Financial Insurance Stocks valuations asset Per¬ . a tip to all bosses and supervisors to be worthy of that him A short while ago the respect for his boss. haps this is By ARTHUR B. WALLACE! This Week ..Thursday, June 30, 1955 . believe important things concerning the bank with which he is identi- Securities, Inc. in Denver DENVER, Colo.—Securities, Inc. has been formed with offices in the C. A.Johnson Building to conduct a securities business. Officers are Waldo c Burns> President; Walter L. Clasquin, SecretaryTreasurer. Volume 181 Number 5442 ... The Commercial and Financial Chronicle Winifred (3007) McGowan, E. F. Hutton & Walston ' ' • ' • • r Company; & Kathryn McCarthy, Co. ' • Margaret Rentelman, Blyth & Co., Inc.; Eva Tarpinian, Giore, Forgan & Co.; Edith McGill, First Boston Corporation Carolyn Scheid, Morgan Stanley & Co.; Marion Lynch, Borick, Blyth & Co., Inc. Ruth F. S. Moseley & Co,} Ruth Ainsworth, Halsey, Stuart Claire Mildred Stevens, Smith, Barney Jane & Co.; Lillian Neylon, Karriman Hand, First Boston Corporation Curtayne, & Co.; White, Helen Weld & Co. Incorporated; Gertrude Harrington, Co.; Lee Lois PAGE 26 West, Higginson Blyth & Co., Inc. Ccrno. alien; Co. Smith, Barney & Co.; Dorothy Boardman, Union Elayne Whalen, Blair & Co., Incorporated \ MORE SYNDICATS PICTURES ON & Campbell, Claire Marshall, Shields & Ripley 23 Securities Corporation; 24 The Commercial and Financial Chronicle (3008) Continued from page dual 12 the acter Flow of Savings Into Mortgages banks? This huge reservoir of money has been flowing into the mortgage market and at a rather rapid rate during the big commercial five years. Not into the mortgage market as we would have thought of it during the 20's, the past when there was little or no amor¬ tization quarterly loans were on a all and semi-annual or the market in the modern into flowing but being loans most amortized that amortization month each on with bases basis, mortgage sense with so about the collection of funds all inate first, it must have standing and char¬ that there is no question purpose; that order to be a tractor servicing or good servicing in con¬ might you the agent, ity and the facilities to properly handle the servicing. Also, and in very fidence and and you important, financial standing integrity is a must. Alreacy many servicing aggjat^are falling by the wayside and we are be¬ the is also nec¬ essary that the servicing con¬ tractor have the ability to orig¬ monthly the result whom the the Ac¬ been Too many careless in this Management in Out-of- State Mortgage Banking In feel other"words, what does this mortgage banking out-of-state back business service then have Better revert ally, the very and and yours. regard. \ business fee is all eventualities. banks close relationship times. a should be drawn in your favor to cover con¬ you for investment cordingly, the Servicing Contract important phase of this business today is the Serv¬ icing Contract itself and its im¬ portance to you, the investor. After all, you bankers have in¬ vested your bank's money, and, although the agent may originate sheep very have you with a very Another business which has our been created, it all at Now, in addition to being able to handle have whom this does actual the out-of-state of say zation, to separate from the goats. he to Due amortization, lending and certainly a person or a group of people whom you must consider as part of your organi¬ firm must have the business abil¬ ginning business. and banker has the problem of con¬ tinually reinvesting his funds. So, this servicing agent is the crux and and secondly, entails, further payoffs proper same as any ness you). — to? Natur¬ other busi¬ MANAGEMENT (that's We bankers have to learn to manage our businesses not only from the safety factor viewpoint, which is always present, but also with a view to the future, know¬ ing full well that, although the it, . . . Thursday, June 30, 1955 servicing agent is responsible, in final analysis it is up to us. If we know our business, know the legal requirements, and set the proper standards, and then through management make sure that our agents carry on accord¬ ingly, we will have done a good job for ourselves and our banks and for the servicing agent as well in the long run. the Another factor which ful bankers is the broker. contributed to thought¬ concerned are The our brokers about have problems and at the very same an time have made important contribution. In the first place, we have lived in an of easy mortgage money for the past 15 years and like indus¬ age try as a whole we are obliged to payoffs come in and thus create a continuous and terrific volume of additional an money amount of new seeking investments. What does this kll For mean? example, a medium size bank with a portfolio of $50 million in mortgages would probably have monthly payoffs and amortization of between $400,000 and $500,000. The reinvestment of this money if the bank is only is necessary to maintain its present mortgage portfolio. On top of this, when consider great deposit growth, portion of which must also be invested in mortgage loans, the you ANACONDA Why a dynamic force then becomes very is dropping real. back the savings banks of many of our states were given nationalized lending pow¬ ers. This has been an additional few A years competitive force. When this law was first passed, many of the bankers were reluctant to make a mortgage loan in some other state miles away from their home base. However, as time passed and bankers gained by experi¬ it became apparent that it excellent piece of legisla¬ allow the savings banks ence, was an tion to to aid our economy by Millions Miami. in in order to keep this great dynamic state moving forward as rapidly as has been done during the symbolic of continue to The standard of living and whole has been affected greatly by this great basic industry, the Home Build¬ ing, which has been financed by the savings of people all over the country. Many problems have been of this new pre¬ con¬ in. lending money. In the place we have the legal cept first each state, some of which are not entirely clear, and the problems arising in case of foreclosure. Then, of course, there is the tax problem. If we make a mortgage investment in a state other than our own, will that state consider that we are doing business in it, and if so are we taxable and to what extent? Some But the skills that made "Anaconda" an have long periods of re¬ demption after a foreclosure sale, thus creating a further problem. However, it is fast becoming ap¬ parent that most states now real¬ ize the importance of long-term capital available for. mortgage loans and many have changed their laws to encourage this type investment. an additional dollar of East¬ money to meet their economic needs in their home After a great name other fields. For years in copper it has been Recently uranium operations in this vital field This year was added, and Anaconda are now substantial and growing. primary aluminum will be produced. Anaconda operations have not been limited to "mining" either. Smelting was to be undertaken. For many years a mill was a products have 19th century activity, and come from wide soon range refining of fabricated subsidiaries, The American Brass two Company and Anaconda Wire & Cable Company. Both of these subsidiaries will be fabricating more and more aluminum. Before of building! the legal problem we operational aspects important. The firm handling your business in a foreign state is the first step in .this connection. This firm has a have the which are cxJMSigaacappa long, in fact, Anaconda will have the most complete line products—copper, brass, aluminum, and many others—in the entire non-ferrous metal The old name "Anaconda industry. just didn't cover this wide Copper Mining" had a proudly carried. But so shall be the whose more than 38,000 range solid ring to it, and the new name, employees intend to of service that "Anaconda" has of operations. Yet name was The Anaconda Company, carry on the same tradition always stood for. 55238 Money is needed by these states. A leading mort¬ gage banker from California told me approximately a year ago that for every $2 in local funds, they ern come. important producer of zinc, lead, silver, gold, and manganese. states need It still is. And it will long, long time to of aspects of "Anaconda" name copper. a have carried into many the economy as a because be—for the past five years. sented than 60 years, more has been of poured into this state from the savings of the dollars have literally people of the north For name! its famous from providing capital in many areas where most mortgages in the past were granted by commercial banks on a short-term basis or from pri¬ vate sources. Here we are today meeting "COPPER MINING" very The ANACONDA The American Brass Company Greene Cananea Company Copper Company Anaconda Wire & Cable Company Anaconda Aluminum Company Andes Copper Mining Company Anaconda Sales Company Chile International Copper Company Smelting and Refining Company COB/ff Volume "begin has 181 to lower and took change been ■demand Number 5442 interest for The Commercial and Financial Chronicle rates It brokers bank any . pattern. our possible of .. lower and to and higher higher loans. They naturally advantage of this. Of full course, if policy, it some bank held to was was willing him. in a commission. tain have to commissions banks things from those a tate for If take the gamble mortgage broker position to boast to a The customer that he could get him the top price for his property and he could say to the purchaser that he could get him the lowest pos¬ sible interest rate for his loan and the largest amount available. It made almost any deal a cinch. In addition, many real estate bro¬ brokers but mortgage brokers I have no think the that real estate a bank siderable paying a ing a good and valid service. How¬ when to expect earn brokers fact brings eliminate can amount that in its of a a a real agent and the they become mortgage by merely bringing a to the bank, they are originat¬ ing work that is to be carried on, greatly mistaken. A mortgage job to do—a job of and good sense—a ent job of talking with the borrower ing broker has paper a work we have problem. entirely differ¬ These are some of an the factors that will present prob¬ lems over the next few years dur¬ debt? < What about of the policies your banks pursuing? Let us look at what Dr. Nadler know recently said and I that many of you here in have heard him express this room his views times. many He re¬ cently said that: estate customer mortgage of some are bank has to do all of the then our con¬ expense In What about the present size orig¬ mortgage brokers Size of the Mortgage Debt a In other words, they thereby, and depend on good sound mortgage brokers to furnish the business, that is one thing, but if quarrel with commission for render¬ ever, they inating department, saving too. Now if got to take the place of the originating officers in the bank. obtaining such mort¬ gages. Many of them imagined that they were not only real es¬ cinch for the bro¬ was a ker to shop around and switch his business to another bank that with kers, encouraged by some weakbankers, were able, to ob¬ kneed "The mortgage debt outstand¬ ing on /non-farm one- to fourfamily nomes has increased from $18.5 to In billion at the end of 1945 $75.6 billion at the end of 1954. the period from 1945 to 1954 the and ratio of combined consumer debt mortgage to disposable has increased a period when the placing of mortgage money becomes more getting facts and credit in¬ formation plus many, many other personal competitive. and 25 (3009) from about 16.0% to about 41.7%. income recent have or most years been insured mortgages by FHA the guaranteed by the VA. the 1954, the of passage of Since Housing Act mortgage loans many have been made without any down payment. FHA and VA mort¬ gages are, of course, sound, and they have contributed to the building of homes and better cit¬ izens. They have removed to all practical effect, the danger of wholesale foreclosure widened materially for mortgages. "In spite of the experience has and the have demand fact that the been satisfactory, following questions arise: (1) Is a noi-down-payment 30-year mortgage really sound? One can readily see that in certain cases the exceptions might be made, but to establish it as a general practice certainly does not sirable to be de¬ seem sound. or (2) Is it ad¬ visable to induce veterans to buy which, leave them no lee¬ homes in way of case which an emergency and bought are only because down payment is required and other inducements are offered? Is no it really economically and socially sound to have constructed when hiany homes nobody—neither the the builder so^ nor mortgagor— takesjany risk and the entire risk prirparily rests on the Govern¬ ment? These are questions which all institutions engaged MLMarkft in the fi¬ nancing of home mortgages ought to consider carefully, particularly at &ssipto when present midst and of starts the o)v MiiWAUKEEifV has MARKET ^ * T~ SYCAMORE A***0 I i of salt. I said There dearth no during the at certainly of the housing five past Pick, up any paper and you'll see statements by the home builders, Government officials, and, bankers concerning the hous¬ ing outlook and up-to-date there has been complete lack of agree¬ a ment ANDlMON® 1 /V\h\TER«l#( among What A«j£!£-MA«ONb I , what years. | O CHlGAGO_UE^ \ home Take all statistics with been forecast VKENOSHAW| 10 grain a >> *^\ T0%^ MUSKEGON 'V the boom of by far exceeds family for¬ Remember ly? in are building number mation." beginning. * we great a where do I any of them feel ®^ATTOOH^A;HAunr all it is these think? experts. don't Maybe I having two of case sides, the wrong side and So much has think right. are a I side. my been said this on topic that it is really difficult to find something new to say to you, but if you are going to see your banks grow and survive in this great period of competition, your survival will ability depend on your adapt yourselves to to changing conditions. The mort¬ banking has changed and gage those of who you selves to it adapt ydur- accordingly will thrive and do very well. However, I do not advocate the adoption of every crackpot idea, forgetting the fact that we must always follow sound banking ITH AMBOY principles, but those who cannot forget the past and those who re¬ DALLAS fuse fall to learn, of necessity will by the wayside. This is the law of evolution. We must move forward, but over the next five it is my considered opinion years that from the standpoint of mort¬ lending we must be careful. The vacancy ratio in the U. S. has been moving upward. There are gage 0S POTRERILLOS f0R certainly many areas in this coun¬ try where there is an oversupply of housing are /, - ' A III SMELTER '/ 'W REFINER* ', * ' «* LUMBER MILL to so new housing. R ALUMINUM REDUCTION PLANT FUME TREATMENT PLANT A ALUMINUM FABRICATING PLANT this tional year, U THE AMERICAN • DISTRICT BRASS COMPANY PLANT SALES OFFICE , / , ■ WAREHOUSE situation. ANACONDA WIRE This vacancy O DISTRICT SALES OFFICE /"\ UNDER CONSTRUCTION still continue new the to and a add the starts addi¬ housing this next five should years, statistics by us some would be¬ of indicate? ratio will then rise opinion my large & CABLE COMPANY PLANT the of authorities year, b to Supposing for some presented the in -J we shall we vacancies which ing there we during the first four months continue x URANIUM OXIDE PLANT If build at the rate of far of tn ZINC naturally where areas need AMINES and some each when and every have you in too the housing situation, it creates a very vulner¬ able position. Let this country run into vacancy a decline in real estate values and you may be surprised Continued on page 26 I I- ■ 26 The Commercial and Financial Chronicle (3010) June 24th at Echo Lake Mae MacDonald, Blyth & Co., Inc.; Sachs Marguerite Aimone, W. C. & Langley Merrill Continued Claire Happener, Goldman, Kathleen O'Toole, & Co.; Mary O'Rourke, Reynolds Lynch, Pierce, Fenner & Beane Co.; Virginia Smithers, Kate Gartland, Winifred the savings bank trustees put their Flow oi Savings Into at the volume of foreclosures. The a ever, there for hand that considerable the begun to time we have the seeds for future sow trouble. we trouble. present Perhaps avoid can bankers if this not are are we pitfall. wise You being of service to your depositors or stockholders overestimating housing de¬ by after mand this riod of this long 9-year pe¬ country with housing building which has seen. I agree those authorities who be¬ lieve that the Government should the stimulation avoid mortgage terms. of The unsound next five will be the most important years in the in order namic mortgage lending business that when the next dy¬ upward cycle comes, we will be ready to build homes as Dr. McKinley of the Prudential Company says, rather tions "on sound founda¬ than failures on and million homes have been built since the end of World War II. This toward to bankers; us is will go This is the urban ment—it is the at long way housing a stabilizing boom. how¬ instrument an means redevelop¬ of replacing has been a wonderful accomplishment and has surprised even the optimists. As I said earlier, the boom has been sus¬ terms and almost 50% of all hous¬ has been Government constructed aid with see have the time to go into it today. Suffice it to say that there are about 800 with tain. shops gram is as it will of our and be me a pro¬ conceived because of the fails, failure to well as Time as does as many some 150 as throughout Great Bri¬ These building associations similar are to in the U. S. you careful consideration your acceptance the during the gained of past few The economics of the pro¬ gram is sound. years. me spend the on situation. European In with moment a Great mortgage Britain the in other parl:s the property, but they require the guarantee of a group of individuals in the from which the neighborhood loans for came, loan pay 1% a They are done through the building associations. Back in 1817 They also make loans at 4% a class. What name ment which an was of George Act of Parlia¬ passed and which all except enough to keep in their cash drawers and for current use by FHA with a body known as the Na¬ public hous¬ tional Debt Commissioners. These commissioners government were and a part of the therefore when the these they loans for are seems to government * will right grant to 4%. up present our which are the vary over and at depositor, a period to but the working happen is the make the year. an out¬ working man equity for deal gage has great accomplished here been lending during the past two Some decades. harm has been done, but the good has outweighed us preserve the good part of the mortgage lending and the FHA insured the GI bad loan features system of developing a banking service of a quality that will provide the needs of the people in the areas Bankers serve. service be the bank a loan at loan at also a home. The bank 50%, the balance being made by maximum rate of position so no must efficient render that question there whatever the basic is even less than 4%, banks our as the secure part of the private enterprise system. You here in the AIB have done rate of structure of 4%, but this amount is guaranteed by the government. In some cases a continue be never a things. But, banker or un¬ mortgage problems becomes of his part a everyday life. Thomas H. Keller With (Special LOS H. to The Financial Chronicle) ANGELES, Calif.—Thomas Keller has with J. A. become associated Hogle & Co., 507 West Sixth Street. Mr. Keller was for¬ merly in the trading department of Fewel & Co. and prior thereto was with Crowell, Weedon & Co. and Morgan & Co. Louis J. Ocon has also been added to the firm's staff. as in will or banker derstand mortgage banking unless continued reading and studying of the well as challenge, bankers will a and sorts of desirable he will rapidly as possible. charged with good bank¬ ing, the future will test your skills you successful a you banker a continued reading and studying. He may be trained for a job, disciplined to his daily task, kind to animals, an honest man To those a as be without a in American in the field of mort¬ as no man can continue that say about their value. In meeting this the know, J. A. Hogle & Co. conclusion, let me sincerely believe that the purchase of of better banking education. As years. In I loans make years which will provide the makes Barrett, in accordance with paid rates eliminate of of the Europe rates that vary value service by 1%, the bad. Let the sponsored in country. In these cases they make loans up to 50% of the and Ross of loans long period of a of guarantee man countries for and their of guaranteed long-term loans. Most interest which gages. GI the In M> as the government source and and loaned banks the are FHA the principal factor in mort¬ gages in Britain. commercial cases Why is this done? Such a loan as given to a man who has a very large family. Thus it pays to have children in Belgium. Such procedures as this you can readily the are low as and savings our loan associations not of this program which has you building societies, having Belgium, mortgage money is usually at the rate of permit 5Y2%. The savings banks there discuss this in detail, but buy many of their loans from urge Let them branches, Government, Federal, State local, bankers. I now and be done can by private industry. If such either VA guarantees, or ing which has been subsidized by the Treasury. This all should be or banks,, but in the hands of the building associations. On my trip to Europe two years ago, this problem was studied and I do not of tax producing light industries. This Lees, Kidder, Peabody & Co.; Kathleen Equitable Securities Corporation this is slums, not only by new hous¬ ing, but by new neighborhoods our required the savings banks to tained of late by ultra-easy credit place money on deposit with them ing guarantees the interest savings banks do not make mort¬ foreclosures." Ten warning but in these is not in the hands of the savings Mozftgages housing market would then be in At with the commissioners, it putting their money with the government. Thus, home building 25 sometimes was page Thursday, June 30, 1955 . Peggy Cronin, Lehman Brothers; Marguerite Kascle, Riter & Co.; Mildred Manna, F. S. Smithars & Co. money jrom . Country Club, West field, N. J. Granbery, Marache & Cc.; Morgan Stanley <fi Co. Co. . tremendous to do thinking so has job and because been To Carlisle, Pa. Eastman, Dillon & Co., members of the New York Stock Exchange, announce that Edward Parsly, formerly of delphia office, has ferred to their at 100 Carlisle, Pa. office Street. West High In addition to Dillon Anderson their Phila¬ been* trans¬ & Co. Carlisle, Eastman, has offices in New York, Philadelphia, Chicago, Hart¬ will ford, Conn.; Reading and Easton, your Pa.; Paterson, N, J. and Southern one of Pines, N. C. Volume 181 Number 5442 ... The Commercial and Financial Chronicle (3011) long-time financial Peace Is Ftom Within! * participants in the commemorative meeting of the United Nations assembled in San tion have • the 10th on to years succeeding generations of war. The 10 since June 26, 1945, have given new this universal in banking have failed to signals. But year by year progress is being made in accru¬ urgency ing E. N. "They proclaim again the us life a policy of dynamic, vig¬ enterprise. sound tradition free the us of ^ us not forget that pursuit of Kingdom of God, is from within... the Continued from The 2 ' page 9 The introduction of the Federal Reserve System was a drastic yet highly desirable departure from banking practices of the past cen¬ tury. The System was received rather slowly by the banks of the country; and there are still cer¬ tain-respects, I believe, In which banking has not fully adapted its way of life to the presence of a central banking system. For example, a very interesting report on check * clearings by a joint committee sof Federal tives * commercial Reserve recommendations tee - of commit¬ the thoroughly werecarefully, studied and would appear to lead to overall economies in the handl¬ ing of checks. Yet there has been such resistance to this report that the question may well be raised whether to as 4 of some this re¬ sistance does not spring from a change rather than from a reasoned judgment. • But more generally we,are, I believe, building in this country a tradition of central banking— new in some of its aspects, but in others as old as the Bank of Eng¬ - . for banking social and cherishing system They ing. stem overpower¬ from the need the great over swings of economic activity and employment which are called the business cycle. These cycles, if unimpeded, bring from riches can to swifter transi¬ riches and a rags rags to than our take without disaster and cial are two kinds of pre¬ business cycle. government management of business—intervention at every point—in effect, state socialism. alternative control monetary the economy is .fiscal ness the free influencing through the supply This method individual to exercise their but in these choices alters busi¬ and ^choices, which and — and price of money. leaves the most litical consistent democracy. maximum of It freedom own climate are made. This is the form of economic trol Arnold Camden of as dulled of the finan¬ one cornerstones was that knew the Bank of the up of our Re¬ new "'i'v ■- v\ ' Hamilton's concept - and distorted well as the to the as United Second States under perish. During succeeding had we learned for when bank, we to Federal our sorrow — one of allowed years central no Banks were and 41 need the years ago the System Reserve was es¬ tablished. In these 41 years we have been learning to live with this sort of banking system—learning the meaning of the discount rate, open market operations, and its other mechanisms. We have that the System has powerful serve of pons cently influence. great the spring as Re¬ wea¬ As of 1953, we their power in checking eco¬ nomic overexpansion, and in 1954 restorative influence of easy with a allows for con¬ thing with which I be¬ lieve you would all agree is that there is nothing automatic or mechanical in the System's opera¬ tions. They work only through their of influence people many whether hold they back — press with d decisions ec i s i o n s forward their or Thus the its social of the System objectives de¬ pends on the understandings and cooperation of leading citizens. If they heed its signals promptly trim their sails accordingly, the economic ship can sail a true course. Here is dynamism in its and time we tion, p e r sense — yet enter the at the the Old of leadership of the nized of the and West Dietz fornia was Seventh G. - Financial Chronicle) to */•.' The Financial Chronicle) Harbison & Henderson, 210 West Seventh Street, members of: the Los Angeles Stock Exchange, Chronicle) Street: previously The ANGELES, Calif.—Harqld Fogarty has-become affiliated with : Investors. E. JF. Hutton Adds v (Special to The Financial Chronicle)' X np.Wiwith J. Barth & Co., ;■ to LOS L. Dietz and George C. Hodg- 210 / ; ANGELES, Calif.—Henry (Special B. LOS ANGELES, Calif.—Samp¬ are Agency. Joins Harbison Henderson with kins Dickson Boulevard. 404 < (Special to The Financial a, name i. c LOS ANGELES, Calif—John M, Martin, - Jr.,1 has been added :.to» Mr. Cali¬ the staffof E.1 F. ; Hutton & Com¬ South Spring Street' 623 pany, . • quate Bank port and the ex- experience. The the Bank is recog¬ respected—it was one foundations of England's not Offer) an ; " \ To the Holders of Colombian Export-Im¬ : . " v. ! . Mortgage Bank! Bonds Agricultural Mortgage Bank Bank are considering loans country, one of their re¬ quirements is that the budget in " (Banco Agrlcola Hipotecario) any must be under control and at least within range of balance. / Guaranteed Twenty-Year - of dynamism. for example, sev¬ eral economists appeared before the United States Congress and recommended large government spending programs as essential to Just a start and Guaranteed name • the country take growing the slack of up Their fortunately again unem¬ ; prise not most too of dynamism,, but al¬ much. the The question economic faster than is pace may be sus¬ can important lessen is but themselves mate. and what did Sound - -sound ; 1 helped to provide an encouraging They were a symbol of integrity in government. •*v ' Gold Bonds- of Sinking Fund 1927 u i.-'h « . ' 1 April 1, 1928, Due April 1, 1918 Gold Boiuta (Banco 7% of 192$ Hiputecario de Colombia) Sinking Fund Gold Bonds Twenty-Year 7% Dated of 1926 Sinking Fund Gold Bonds of 1927 of 1927 - February 1, 1927, Due February 1, 1947 Twenty-Year 6l/i% Sinking Fund Gold Dated October 1, Bonds 1927, Due October 1, 1947 ' *' . • 'Mortgage Bank of Bogota t< ' (Banco Hipotecario de, Bogota) - Twenty-Year 7% Sinking Fund Gold. Bonds \ Issue of Mar, 1927, Due. Aipy J, 1947 , Twenty-Year 7% Sinking Fund Gold Bonds Issue of cli¬ policies policies , , Dated .November 1, 1926, Due November J, 1946 people they had monetary budgetary Sinking Fund 7% Twenty-Year that economic , { . Mortgage Bank of Colombia the when in .the -(Banco,- de,-Colombia) Dated dynamic growth came not from what the government did for the people, , April, 1920, Due April 15, 1948 Dated April J, 1927^ Due April 1, 1947 Twenty-Year . The ' •> Bank of Colombia ; • - tained. issue of • forces lack be not • have recovery. , Twenty-Year 6% Sinking Fund Gold Bond* were heeded, and the of private enter¬ brought a vigorous So today the problem January, 1927, Due January 15, 1947 Twenty-Year 6% Sinking Fund Gold Bond* Twenty-Year,;7% , . } Imuc of August, 1927, Hue Aajita-l; 1947 • not natural appeals . Guaranteed year ago, ployment. is * '• April 1, 1916 Twenty-Year 1c/o Sinking Fund Gold Bond* 1 issue of In recent years, this tradition of puted in the 7c/o Sinking Fund Gold Bonds Issue of 1926, Due Guaranteed * the balanced budget has been dis¬ October, 1927, Due October 1, 1947 and , ~ Convertible Certificates for 3% External Sinking Fund Dollar Bonds of tlie Republic of Colombia, Due October 1, 1970 climate. So here again is evidence of the dynamic quality of sound tra¬ dition. The is * experience of various Eu¬ countries in recent years especially interesting testimony the to resurgent traditions of power old balanced of budgets bank poli¬ and vigorous central In Belgium, in Germany, in Holland, in Italy, in England, and cies. elsewhere of the greatest upswing vigorous and (recovery of of per¬ parliaments to spending, levy ade¬ and so keep their money sound. When the Interna¬ establishment understanding. Lady of Thread- to (This Announcement is ^ in¬ taxes, tional been excess realm of tradi¬ Street, the Bank of Eng¬ land, speaks through action, Lom¬ bard Street understands, through years 7 Fox Samuel reluctant forego came needle 250 suade nomic growth and e n c e of same of the accumulation i When stress ropean success great truest has times individual undertakings. po¬ enter¬ the on Mr. U . the with Company, Drive. with under Blesener and Frank E. Jack havebeen added to the staff of Cali-r forma* Investors,-3924 Wilshira Two With J. Barth the world this over tradition in confidence Another frequent: inflations. voked re¬ saw the most powerful whether learned and disastrous & Court R. (Special associated previously ; , son balanced." All political pressures; and the First re¬ is The Hamilton set public. ;" Unhappily, in scriptions for the One he United States economy bellion. There Lloyd Wil¬ Two With Calif. Investors BEVERLY HILLS, Cal.—Robert un¬ country's money supply and could offset the central .bank's greatest ana hold last (Special to Th? Financial Chhonicle) become — So there has grown up a tradi¬ that "the ;budget must be- progress Alexander when rea¬ central a are 4o exercise control tion An Bank W. of quote from St. Paul has Wyo. conducting tion money. economic The sons ; is better With Lloyd Arnold Co. Fox SPRINGS, R.; Dickson LOS ( the with the least government interference. For this type of social control, a central-banking system such as the Bank of England or our Fed¬ eral Reserve System is essential. tear of land. budget. no 119 central keep the money supply on even keel/ History shows that unbalanced budgets have been ; prise and hanks representa¬ recently rendered. V The was the ROCK social do can Franklin & Co. effort to Dynamism i of Tradition The Reserve System and Tradition and with the on one Henry A. Geer, and securities business from offices at that which is gooa'2* so : , to for the Blatt Building Swetnam. liam ■ "Prove all things; say, balanced budget tends to increase like peace, v both the value of change and the value of tradition. ; ' side by centered cause ■ Perhaps than forces • North Tradition of the Budget Side great progress. the But let - • these are Wl R. Dickson Forms Co. . anaylsis, and of nurturing both of C. K. And, again, in this The problem is one of balance, under¬ tradition. Partners the dynamic solution of our proo.>' V " \ •/-' ;, "" of N. Mex.—Watson,/ FE, to engage in a securities business. that inspiration which often the.-wellsprings of lems. banking action as an instrument of economic policy is fiscal policy anniversary celebration. SANTA Geer & Swetnam has been formed, with offices in and so was ' Watson, Geer & Swetnam country we have a tradition of welcoming change and seeking a; powerful • of the UN San Francisco are - by give can namism recognize that the hope of enduring peace rests upon how well the nations carry out their purposes ^and uphold these principles in their relations with each other."-—DrEeko N. van Kief fens, Chairman bad, human action. A sound central banking supported tradition I *■ dence principle lying confidence to support cou¬ rageous enterprise. So we are justified in speaking of the dy¬ their be good and depending on may be Tradition, itself, may - be dy¬ namic in furnishing that confi¬ becomes for foundation-: of L dynamic growth. dedication to the purposes and principles formulated in the United Nations Charter. They : economic Thus, indeed, a of central banking common • of preservation of want here—the orous borliness. Kleffens van Nothing could be the vital to kind we explicit text of the Charter on security, justice and good neigh- '. -*•*? tradition. a more the Both may - heed its aim ■. is, peace, with Sometimes means. and ness aspiration of accordance fi¬ System has failed to give clear leadership. Sometimes busi¬ peoples, for they know that war fought with the weapons now at their disposal would bring untold calamities to based The business the another Their tradition. a and what its action the mankind. such community is beginning to understand the place of the Reserve System and save to the Federal Re¬ have begun to we build from the scourge meaning and years j of System nancial determination common 41 serve anniversary of the organiza- reaffirmed their dition. both the time and the circumstances. In << Francisco of great tradi¬ a tion. All member r leadership Here is the world. 27 eco¬ after the traditional re- fis¬ cal and monetary policies/bring¬ ing budgets into balance; check¬ ing inflation by courageous mon¬ etary policies. NOTICE OF EXTENSION The time within which the Offer, dated June 25, 1942, to exchange the above bonds and the appurtenant for Republic of Colombia, 3% External Sinking Fund Dollar Bonds, due October 1, 1970, may he accepted is hereby extended from July 1, 1955 to July 1, 1956. The period for exchange of Convertible Certificates for 3/0 External Sinking Fund Dollar Bonds of the Republic due October 1, 1970 in multiples of $500 prin¬ cipal amount has also been extended from January 1, 1956 to January 1, 1957. Copies of the Offer may be obtained upon applica¬ tion to the Exchange Agent, The First National City Bank of New York, Corporate Trust Division, 2 Wall Street, New York 15, N. Y. coupons AGRICULTURAL MORTGAGE BANK Conclusion (Banco Agrlcola Hipotecario) It pat clear seems answer tween the and the to that the there is conflicts no be¬ great forces of change conserving power of tra¬ By Pedro Navas Parro Dated, June 30, 1955. (Gcrenle) * 28 t The Commercial and Financial Chronicle (3012) with does Continued from first page Opportunities foi Building Thursday, June 30, 1955 . . The should ments it cannot be called other In Buying tified everything else has been provided for. Or you might say that investment is only for the well-to-do and the aged. after grounds, unless the purchased at the bottom estate cycle. The emergency fund is a savings but not not necessarily an investment, If it is properly employed in a savings account, building and loan company, or in a savings bank, it may be earning an income, but liquidity should never be sacri¬ ficed for income, and its primary purpose is protection not income. the of has been all wrong! Un¬ doubtedly their planning followed still being ning the traditional pattern which was drilled into the author during his one early investment studies. The planning consisted of four parts. build up adequate life in¬ Adequate is defined as sufficient to permit the depen¬ live to at that to would have been possible lived. The kind of insurance ommended manent rec¬ to building up to $10,000. Third, provide or home for the family. And final¬ when these first three ly, if and have been satisfied, plan in¬ an vestment program. Unfortunately, moderately successful busi¬ nessmen and professional men are never able to develop their finan¬ cial programs much beyond the first three steps, to say nothing of people in lower income groups. And if they are able to do so, they many will be old that so investment an program will have very to work for them. This article is not little time condemning worthy objec¬ tives and recognizes their place in financial planning is the wise use of these savings. It has been said many times in many ways, and it can be verified by simple planning. features, saves. be justified, can other no if for than the fact that reason they force the individual to save. It therefore behooves everyone to plan savings program that re¬ the saving of a fixed regularly and to begin a quires amount this program just as early as pos¬ sible. The American do However, it as a group number of policy holders and the force, the size of savings accounts in banks and savings associations and the purchase of savings bonds, . On the other hand, many peo¬ .... unwilling to Some will not save except pressure of semi-force, the at investment ex¬ program unable are under instalment and relegating investment, as it does, to the aged and the wealthy. It contends that people of modest life nisurance, or home payments. The tremendous amount of con¬ means benefit can from a sound investment program, that the pro¬ should gram life, an be started early in and that it should be made integral part of the individ¬ time is loo year's It Are should be necessity point that savings, insurance, and home ownership, as well as stocks, bonds, real estate, and business ownership, are often referred to investments. as With¬ out trying to arrive at any exact definition for the term, we should point this that it is being used in to mean the employ¬ oul either of purpose funds or of making for the return, either should upon spect risks the we individual. can vestment assumed, depending In this re¬ have speculative in¬ and relatively safe in¬ vestment. In other words, we using investments to mean We therefore are distinguishing safe investment in from other parts of financial plan¬ ning. Purchasing of insurance is to buy protection against sickness, accident, and death. It is not to make the same some ing Home of an are without we insurance are correct in call¬ an investment. ownership is the purchase essential good, but unless it be can a long a a it pocket starts. or bank Idle ac¬ dissipated. The spending of savings plan might easily result of the savings and be savings at all. The highway is: lined with than no wrecks were of investment at 8% is worth $27,978, and at 12%, $85,744. Also $100 a year invested regularly for 20 years at 8% will be worth $4,942 on a total investment of $2,000, whereas if continued total a of 40 years would be worth $27,978, ($4,000) for and for same 50 $61,967, years, on a total investment of $5,000. should that the also be , pointed loss of investment a out time in early years cannot be made by increasing the dollar up amount of the investment later in A hundred dollars years. a invested for 45 years at 8% amoun^ of ®. wor'h «?«nS g a. oi3ntd $100 a year at 8% for 45 k a . ivesting „ be almost times at the a year he until five is $10,000. 65, will better 65, than 12 faiJfo to $12,504. real better times am0Pnt' follows then It of any dependent is of time it can corn- tbe |ici y-je"lds average tJfian 3%> and Bond £lightly better Moody's industrial stock common just above 4%. However, common stock investments hold out the possibility of higher- yields are returns the jn form of apprecia; Risk of Stock Common js assumedj then, that to get higher yields the inmust put his investment vest0r the [nt0 should ,, Most people are well aware of possibilities of receiving compound interest on their savings Can stocks. without length years spent on of the ably tip." on that as should to as the basis Prudence It be the given to taking aiso this.be he vest0r pointed out "hot take pro- and earnings expansion These purposes that in- any whole sav- Greed is always an On the other safe utilizing to the realize present or future, may be great. The protection of purchasing power offered by stock ownership mav well offset to the on come the company stockholder earns original vestment, plus the in- s periodic amounts added to that investment PZ re^ained Second, earnings. through new inventions, research, expanding population, and mar- kets, the of public acceptance of wider products, increased standard earning faster grow other and living, company s factors, power the than a may additional thus increasing -the value of the outstanding ownership. Finally, the stockholder can investment, reinvest thus his dividends earning a each return from year, on and the on additional financial risk, any that in- of growth tained by this can conclude that with How $100 Nor the savings. people fail to because they lack the knowl¬ can be accomplished savings program. What one 2% ed should merLs it than iess investment or nfiduiv rRkv i* Nu- |erdecent studies years purchasersfdf the so-called risky securi iesf ? Also there methods of aiifchasing corn- are mon stocks that of some remove the risks involve t,1 such cost dollar as stocks are becoming ge ierally, accepted as a necessary jbrhponent of a souncj savings ^vestment pro¬ gram. The syster Stic purchase of averaging.. good common sent Common b^s'should no sb pre- greater financial diffithan simil r payments for CUlty Lucile book "Practical safely riod of a saved The long a our pe- low as the results yearj by <®/ef EvMif time. as indiinterest as compound $530 $546 $563 1,117 1,181 1,248 1,321 1,397 1,764 1,916 2,082 2,266 2,467 20 3,899 $580 "No formula for be used with of ultimate what any other which can investing prices, as much confidence so happen Dollar Cost Averaging." Unquestionably, investor regardless of to security success, may in systematic the will stocks that find both values and income will fluc¬ tuate, but he over period of a years ulti¬ be confident that the can mate results will produce satis¬ a factory return substantially in ex¬ of investment in fixed income cess securities. The however, should cost averaging long-term investment plan. It is not designed to build up a fund to be liquidated at a fixed date investor, realize that is dollar a in the future, nor as a fair savings program. The biggest danger to this and any other systematic saving - invest¬ ment program rests in the possi¬ near bility of their being discontinued when business activity is down, the of or dated period a liqui¬ stock being program's at low of prices. Stock Common If the term what program, be could precise this Yields undertook saver long- a systematic stock investment kind reasonably answer of return No expect? given be can to question, but there is enough information available make to a conservative estimate. The Cowles ' "Common 1871-1937," states annual invest¬ report, Indexes, that the ment average accomplishment of the all on the Exchange was listed stocks York Stock for this period of 67 years, 6% from income and 2.8% appre¬ ciation. During the period fol¬ lowing the Cowles Report, 19381951, studies show the average annual an increment overall turn realized was be 12%, or accomplish¬ to 80-year ment of better than 9%. This over of!. dollar principle cost a $598 business of prosperity high taxes study made by : conditions, and depression years, and -low the taxes. Bureau at the dicated that invested a fixed every in of money sum for a period section of com¬ year a cross stocks turn Research University of Michigan in¬ of years mon A of Business would equivalent pounded produce 12.2% com¬ all divi¬ reinvested. The period were used for this study that if re¬ a of annually, with ended was the from Jan. period a Dow Jones Averages vonly 7% higher than they were at the beginning of the period. The only basis for selec¬ the of study was stocks used the in the volume of trading during the year 1936. Bv taking every stock which traded a mil¬ Period $615 of Annually 8% $534 Years f£, Various ' 9% Rates '4t'~ $710 $652 Hr $"71 1.565 1,656 -V-.M.753 1,962 2,932 3,200 PC -3,495 4.168 2,478 2,767 3.096 3,472 3,267 3,755 4,331 5,011 5,816 6,767 7,895 30 4,138 4,900 5,833 6,976 8,380 10.107 1? 2°4 4,387 4,942 5,576 9,232 -> or shares in more were 12% 2.689 25 lion of 92 stocks ^7vl0% 1,478 . re¬ period a of time that included all kinds tion be impr«sive. can 7% 5 for Investing" states: has yet discovered one her in Formulas 15, 1937 to Jan. 15, 1950, Compounded 15 Tomlinson folio. Successful should be in line with what could 5% 10 oppor¬ preciation to the investment port¬ dends Will Grow Over Interest the savings bonds o ^insurance. In fact, the two shdhld be complementary. However,; the amount cated 4% reasonable a certain to produce reasonable ap¬ industrial assumed be stocks common chirp* comparing the present 3% to increases 8.8% table of Yrs. down and tunity of gain. Over a period of price movements, unless liqui¬ dated at or near the bottom, it is New compound in- so loss that be readily ob- Invested Annually stocks level and thereby reduces the risk the ownership of carefully select- $iqq Evidence the of Stock the vestment. terest monthly in¬ plan is basically a dollar averaging program. Dollar aver¬ aging keeps the average price of Commission as > years many New vestment power, spending a wise plan savings or the what might be many edge of what danger. 4S ritainued ,ln k^ness have indicated fcat.< the common a* b°ok value of the st0ck purchaser mas fared better stockholder s investment, and in both as to dividends and principal i the The York Stock Exchange just plow them back into the business for earnings savings plans that fail do a their periodic indicate growth can of one funds. trust by buy¬ or in- no TABLE I Equally true, with of mutual should It that he endangers his ings program. It such high returns seek can that riskless. is done risk? undue be pointed out vestment First, most retain substantial companies not saving. accomplished save This value ways. savings because of the lack of to investment moment some the equally understood. portions is investment investment much attention and effort seems most of would stock common in shares ing more or one stocks of his selection weather- * . desired more be obtained. insurance Investment be-carried Out and the yield that can BondSj if period, pay ]o_year life 0{{er The that the the 4%. ^Qn sayings pro- on com- to returps-around 3% investment' part of their panies off on n success gram off loan w % Saving tbe £or Most though the With return of 12% he would be and fr*m return same even Savings ^jted jlejd dollar savings are the same. a , dollars of amount in , starting at 50 and invest- one ing $300 jnn • he retires at until years , year $41,743; whereas $300 a invested for 15 years, or ex- foi: the 1937 Since average annual increase has been higher. There is no evidence to indicate that this rate of increase *s going to slow down in the future. Realizing the importance of yield, the saver might ask next what klh<* of yield or return he may safely expect. Return on investment may vary from slightly P}0?® than 1% on short-term United States Treasury Bills up to extremely high .levels on risky stocks- Today typical savings accounts pay intere&t from 2% to Ln™^0nc.an?0U ? S fhan would be worth year period. r i , It original without plan or reason and prob¬ failure in it over high but one's soon the loss worse for combined before the are Protection and in¬ policy; consequently in cases count often money. vestment in the the that so of savings pro¬ planning for the the savings is to lose of use battle that level a without haphazard in amount limits However, to plan the our dollars significant, regularly period of time. are essential. at be power financial putting of our money to work for us, as distinguished from the buy¬ ing of goods and services we deem 161, whereas the 67-year im- mediately apparent from the above The importance of the time element and yield. A hundred dollars a year invested regularly at 2% for 40 years (or a total of $4,000) will be worth $6,- amount, of of The aside set wise be are Table: in be rent. fixed to earning a small, cent reasonable gram must or be within the large and enough funds either number per It should clothing, money employing- funds Two investment factors place in several income, income period and doing it preciation. certain fixed a fixed a in the form of income and/or ap¬ In of time at various rates of interest. the set¬ regarded just as much a part of one's per¬ sonal budget as items of food, paper ment advance savings involve aside of a certain regularly. recognized at this in saving ahead of All this indicates the of planned savings. Planned or Investments earnings than rather each What Franklin, "Money begets money, and its offspring begets more." Table I indicates the potential results of a small investment of $100 a year over a period next old when expressed savings and loan associations. The possibilities of obtaining the benefits of compound interest in for investment program best accounts in commercial banks and credit and buying today in¬ dicates that people are spending short age the principle of This might be in the words of sumer ting an any program hand, financial risk or loss of principal is only one of the investor's risks. Loss of purchasing until to produce results. on have been in 1955. A thousand dollars invested in International Business Machines in 1921 would have been worth more than $256,000 in 1955, to indicate just a couple of cases. According to the Cowles Commission report, "Cornmon Stock Indexes, 1871-1937," the average annual increment in market value of all industrial stocks listed on the New York Stock Exchange was 2.8% for the investment spending. financial largely 1923 would the planning to be built up simultaneously with the other parts and not postponed ual's payments, payments as in required regular of success investment or such as Electric in worth $23,000 Benjamin than people This is evidenced by the save. Compound compound interest. ca son save. an he a ning, such as home ownership and insurance policies with savings complete of what but what not elements of financial plan¬ Some ple pense is success earns man does question the wisdom of their satisfaction that the real test of large amount of life insurance in of the above any financial of an later prerequisite planning and in¬ vestment is savings. The success financial months' several the financial all expensive, per¬ observation, Second, establish an; equal and $5,000 a insured fund, starting with emergency salary the is the type. amount had of simi¬ standard a which that It follows surance. lar real Savings Essential to Investment First, dents dollar-and-cents home is many recommended, the rarely be jus¬ can purely economic individuals in their late 40s or early 50s wake up to the fact that their financial plan¬ How home a on investment. an ultimate long-term ownership is than renting, proved that cheaper financially problems in¬ words, invest¬ always come last, the and vestments volved. be can individual consider in¬ of Interest rests an ' ... Significance our suggested savings investment program. Its basic principle is that of invest¬ ing a fixed dollar amount regularly into a common stock pro¬ gram. The program can be car¬ ried out by the investor purchas¬ ing at regular intervals a fixed averaging fits into value of an investment made 30 or 40 years ago in almost any of our leading companies. A thousand dollars invested in General savings is just as saving in the first as — The A Life Estate in Investments should his important place. ' . , 8.057 6,300 14,911 10,818 senting 27 industries, good and speculative and blue chip. There was no selling during the period. A thousand dollars was bad, in each stock 26,975 invested 23,512^ 29,812 4s,250 35.8293 f*. of each year. 85,744 14 857 r-1-8.094 1936, a list obtained, repre¬ on Jan. 15 ' 35 40 45 50 5,099 6,227 6,161 7,766 7,660 9,882 9,484 12,684 11,812" 16,404 14,791 21 361 18,610 48,685- 27,978 9,550 12,587 30.575 7,333 16,768 22,551 41,743 57,318 S/79,079 $8,627 $11,618 $15,877 $21,981 $30,776 $43,498 $61,967 $88,844*$128,030 151.820 this One might represented a riod, but the facts say that favorable pe¬ are that only Volume 181 Number 5442 ... The Commercial and Financial Chronicle •" • <4 - • (5013) . during the Fall of 1945 and early if home ownership is postponed a years, especially while the small and the job unthey were when the study startr> settled, the .money which would ed, and ended just 7% above the have- otherwise gone into these starting level as a re.iult of ad- things could start Jthe. investment 1946 did the Dow trial averages made varices Actually the long Jones Indus- few above the level go at vthe of end family is 1949. PPropfen fihah^al plan- program^ could argue that in ning would provide ways for the run the investor might- investment' program to'4 one expect better results, because over the past 55 years the Dow Jones ment the other complephases of financial planning and not industrial until other up,at an rate of 3.18% a by ' careful selection trading along the way better results might be obtained. : *■ Standard and Price period from : Poor's Index 1871 to 1953 to dividends of mately 6% would give annual return of happen to a not com- case he lives. In ad- his family in case he dies, one should consider what will happen to him and his family in case he lives. In view of approxi- the an average better than needs in one 9%. rapid increase in tancy, early ing present Assume that life retirement expec- (us- age a person had startmortality tables, at investment program on Jan. age 65, 12 to 14 years before ex1, 1930, when the Dow Jones- pectation of death) and increasing Averages stood at $248.48, by in- costs of living, this question is ed an vesting fixed amount at the be- a ginning of each Jones of end 1953 shown in the Dow year Industrial the stocks. By fund would an appreciation reinvestment without dends. This equivalent would to of divi- As the have ever for insurance need investments are grow, decreases, By integrating the two programs, it may be possible to get better results or protection whether one been average an related. 100% have than today before. These two protections the of pertinent more com- dies lives. or pound interest growth of 5V2%. The average dividend return over the 25 year period would have been 8% or a total of 13Vz°Jo com- thing one should replanning an insurance program is that protection costs money, and the cost of protection P°Andfu" At the increases stock time present corporate reported as first member in , yields ^ The magic policy eliminating this cost. the insurance arid the investment. is no the as that insurance amount of these results to re- of selection^ They results based upon Inmost they the as bad cover good. greatest as are and known. expansion ever It seems only natural that period should prove bene- a ficial to the The well as all indications facing one of the periods of industrial we growth such times However, that are diversification. they include the bad good stocks, and cases well as stock owner, common real danger might result increased purchase of stocks, as more people try to take advantage of these potential benefits and force stock prices to excessive hig^s and yields to lower levels. one from However, in light of past exstudies, present resuits, future outlook, and the opinions of many investment 'counsellors, it appears safe to asperience and that long-run, systematic investment program involving the in stocks sound should basis a purchase regular good and common companies and on average a that much cash but year, it does at rate a that the no in This out every over that excess of the the years 8% com- the results of such studies Commission selection, no they were change in investbuy new stocks tested. Availability next will question the young ment able to to ask man is, start- start this invest- especially if he the other essential program, provides for elements of sound financial planrung? This question cannot be precisely answered. We are tryf ntf fn nAinf ai one vestment part builds up, so that the two together equal $5,000. At age 65 the investment reaches 000 and the insurance is This is hand; it as should investment and ance $5,- zero. be. has gone down the If I had purchased a home 20 years ago, it would have been all paid for, and I would have money drain. had something to show for my money." The last statement is undoubtedly true. If he had purchased a home, it would have been paid for, and he would have had something to show for the money, but it would have been because the purchasing of a home would have forced him to save and not because the ownership of the home was cheaper than rent. it should cannot 0ne be live remembered in home a as go (protection) decreases. A proper plan should contain both. The simple point to remember is that there is no magic financial policy that the removes protection. Stripped propaganda of attached of cost all ilv If all the costs are conincluding taxes, insurrepairs and maintenance, can limits, there is justification for the senaration of the two. If an investin ment insurance 3% return and a produces only long range com- stock program can produce of 8% without jeopardizing the ultimate principal, the two should be separated. mon in excess The ment it is big argument for invest- through life insurance—and a good forces the argument—is individual to that save. it He forego interest ing, either paid tied money paid for by rentthe investment, on lost or in up because the home, and depreciation, it will probably approximate a monthly expense Of 1% of the cost of the horde and be in excess of rent it investment reasonable seems to assume that with a sound educational program on the advantages of stock common with ment the investment and development of programs 0ver he York Stock such as invest- the period of time, this cannot a done. To do is just so finan- New of other There dancfpro ™ expense of 'kjncj investment first 0f financial nurchasinsf a especially at the an The gram an(j in early, too e two-other are oresent is in out life suitable that home later pro- size the that seldom his As on. come is to fits a adequate needs or desires or the family and in- more grow, bedrooms and become necessary. To anticipate this in advance and to se- space cure for a tied home a frozen very asset. If it at the expense up financial needs above arguments not are designed to condemn home own¬ ership., There are many reasons to justify the ownership of a home, in spite of the financial costs. Every financial plan should work to this end. As family a home at the start adequate needs will probably at For purchase ment end of in protect him he could term homes. Families pier in their changing often own homes. psychic other and by are * hap¬ values These justify All we are suggesting ownership be postponed only long enough to start an in¬ the is cost. that vestment other of is of the financial sacrificed home early working program parts not are the at expense ownership during when the young years unsettled, the family so plan the man is small, and children make friends easily. Building program will work we suggest- are out in practice. largely experience, plus the ex¬ past cellent outlook industrial in ment is for economic growth and the future. well and develop¬ To conclude opportunities of the fu¬ less than those of the past fallacy. We appear to be standing on the threshold of one of the greatest periods of techni¬ and industrial world has expansion of developments atomic as the power, the electron, automation, as well as the rapid expansion of produc¬ tion, it has been forecast that the next 25 years will see changes, the like which of known. never the world Add to this panding population and our our has ex¬ better knowledge through economic and governmental controls to control appear activity, past experiences to be a conservative guide future. A financial plan provide investments, sharing in this growth and devel¬ to the that fails to opment, is unsound and does an injustice to the wisdom and knowledge of men in this field. the In from a tions. first few Suppose wished a over a and at the protection age 35 approxi¬ period of 15 man accumulate to mately $20,000 years place, let us recite hypothetical situa¬ of time have amount if he protected for excess the $20,000. addition, had he died during period, his estate would have leceived the $20,000 insurance plus the amount in the invest¬ In the ment fund. If death had come working him for and The increasing policy, surance have been Any in this would sum excess of $62,000. number of investment trust shares would have produced equal or better results. at age assume a man aged plan for retirement He can save $100 a us wishes month to 65. $1,200 a year. He wishes protection during the remaining years of his life, and at the same^ time or he wants to build up a the costs in the form of taxes and interest. To The following options are avail¬ able: (1) icy. A 25-year endowment1 pol¬ Ordinary (2) life plus invest¬ ment. (3) Term insurance plus an will necessitate time he If purchases dowment a 25-year en¬ from a leading policy insurance the $i,2Q0 non-participat¬ ing policy of $29,296. The $1,200 would company, purchase a would have purchased a partici¬ pating policy with a face value of $26,768. By leaving the divi¬ dends with the company, the final at the end of the 25 years value would for have the exceeded the $29,296 non-participating policy. V' If he used ordinary life and an fund, a $25,000 nonparticipating policy wfeuld cost approximately $690 a year, leav¬ ing $510 to invest. If the1 $510 a year were invested in stocks1 that investment as the Dow Jones In-; Averages, adjusted for a 7V2% selling charge, theyv would have a value of $44,041.05 (assum-\ ing the 25-year period 1929-1954). The ordinary life policy would did as well dustrial . same that agent of New York State the at Continued, on page selling of the first and purchasing of the second. Again only under favorable conditions (Eastern Daylight Saving Time) $125,000,000 can this exchange be made on a profitable basis. There will be New York State Thruway real estate commissions to be paid on both the house sold and the one purchased. Some people wish to home secure a new before selling the old. This again ties up funds, often leading to discounting the price of the first house to obtain a quick sale. Such moves are usually costly. The second danger from changing jobs or being transferred. Again the young man starting out in life may be (Third Issue) the State of New York Dated July 1, 1955, and due serially in various amounts from 1985 1995, both inclusive. The Bonds will, be comes unsettled both as about his employment, company he is the to working for and the location. uncommon for It is people young 1 Principal and interest unconditionally guaranteed by to financial Authority State Guaranteed Thruway Bonds This alone could be several hundred dollars. Thruway Authority July 12, 1955, at 11:30 o'clock A. M. future some to their subject to redemption by the Authority, prior respective maturities, as a whole or in part at any time on and after October 1, 1963, upon certain terms and conditions, includ¬ ing specified redemption prices. Principal and semi-annual interest, January 1 and July 1, payable at The Chase Manhattan Bank, New York City. to Copies of the Act and Resolution authorizing the Bonds, Official Statement, Official Form of Proposal, Notice of Sale, and form of settling company-savings,programs, ,,a*ki -down. Or if he stays with the profit..sharing plans such as that same company, he may be trans- opinion of Attorney General will be furnished upon application to The Chase Manhattan Bank, Fiscal Agent, 11 Broad Street, New program, the plans of^to move from job to job many investment trust compa^tes* ^different areas before of Sears Roebuck & Co.; sufficient L : i_ 1 ' ferred several 1 n _ times 1 i _ and before being through vestment on this planned in- program. of the first house, ly under forced York, New York. 1 3.11 disposing often hurried- conditions, in¬ in¬ vestment program. will sell at his office at Albany, New York on buy the smaller home re¬ tirement fund should he live. Comptroller of the State of New York as just prior to the expiration of the in¬ investment;beyond the an man's means, tying up which otherwise would be as good, his investment $42,000, and he would still have been With such known. ever the as the New on Exchange, the bad would have been worth in a cal as industrial stocks Now let Here again we are limited to done high-grade mutual investment trust If his stock purchases had well as the average of all 40 The next step is to see how the type of . or shares. Life Estate in a Investments in On the other used to purchase good stocks York Stock around an amount company for approxi¬ mately $180 a year. The balance of $1,320 a year could have been the them for $20,000 and that surance and school, making it unwise to for mature period of hand, purchase a 15-year $20,policy in a leading in¬ grows, children develop friends and become established in church shift the excess he died. 000 $1,500 a year he 15-year endow¬ policy which would the amount case a future require Exchange monthly in-* not be¬ by too early a purchase, it may be worth postponing. The should die. could in up business cially fooling oneself, vestment j only, re- qdii-ed for similar living quarters, Many people, would like to ignore depreciation, but if an individual of protection of reasonable forfeiting his protection. the be are young investment a to ture money safetv comes has ance, the better results the rpiui^d Money tied the and utilities not al¬ expense ready referred to. that any to policy, insurance as an investment must be judged, as any other investment, on the results it can carry for for volving the cost and sidered, This purchased that young man's needs when he starts Insur- hand in the investment fund the. need for insurance builds up, However, . ing out in life, when his need for funds is great and his earnings be If cannot Investment . The the investment. without of Funds "How plus dies, he receives only $5,000. It is a combination insurance-investment policy in which the insur— ance element is reduced as the in- as assumed zero, policy consisting of $5,000 insurance produce mean that Put in other words, a $5,000 en- j§ considering his home as an indowment policy, age 65, is not a Vestment and plans to live in it If:; other, It should be pointed out Cowles low. the insurance part* reaches produce. ment other than to as , within take should'grow face media accomplishment to fund pounded. in that there would be mean the equal part industries of 8% or better compounded. does not (protection) add up of the policy, part investment conservative growing produce an of investment, but policies in which the investment part of- the policy equals the face amount «nd the common sume an fixed a have" when' average are plus of not are In other words, all" policies are endowment policies at some age, been obtained without the benefit ; investment an policies combination are good as (which contain outsirlo of term It should be pointed past. that all out cies 1 assurance ship, these statements sound fantastic. This sort of statement is commonly heard, "I have been paying rent for 20 years, and all by The second point is that all poli- nothing. stock There favorable conditions home ownership can rarely be justified on purely dollar - and - cent grounds. Certainly during periods of high real estate values, such as 19461954, this is true. To many peopie who have not carefully considered the cost of home owner- There is no as one ages. Moody's Investment Services are slightly' above 4%. Earnings on common stocks are increasing at a rate of approximately .4% annually. This would also indicate a gain in excess of 8% on common suits in the future will be With both programs to offer, he would be more likely to recommend insurance for protection and higher yielding investment plans for the balance of the savings. We have already pointed out" ment plans. that unless purchased under very dition to asking oneself what will gain in stock prices equivalent to 3.4% a year compounded. This added been pletely overshadow the protection the shows have of death, it should case Industrial covering items As important as protection is in and Stock all postponed satisfied, average Also year. have "moved averages be It is unfortunate, as some have suggested, that V the insurance salesman is not always an investment expert and does not' sell both insurance and other invest- 29 ARTHUR LEVITT, State Comptroller, Dated: June 30, 1955. Albany 1. N.Y. 30 t 30 The Commercial and Financial Chronicle (3014) Continued from 29 page . ■ and larger or longer payments. It would have been difficult to purchase earlier er of cash $12,548.75. the value surrender death and of estate mium costs would average approximately $235 on a non-participating policy. This would leave $29,296, this program at age of 65 would have produced a living estate of $56,589.80 and a death estate of $69,041.05. Had he used a participating policy, the dividends could have been the premium policy, leaving and used be to cost the results of have been would grams able. both a the on Exchange), New York pro- compar- 25 Years $1,200 $30,000 1__. Plan 2_„. 1,200 30,000 Plan 3_». 1,200 30,000 82,000.00 maintain ♦To this full estate the insurance the results for young veterans age 24 One two drops compare his converts or National systematic investing in the stock of that company, with the funds T sumed that he policies. is It also able to is also purchases another $10,000 term policy, which he lies until he is 54. the vests car- This person in¬ difference between penses such have not policies into ments. first of the stock pro- common each allowing and year dividends to reinvested be ally be reduced insurance term vestment $205.70 building and loan until £d . . The a be gram were amounting for year Assuming 7%, costs, which taxes, "without the death would be the differin Dart the all expense money from com¬ any be made. who person in estate for 45 case the jng estate $33,903.00; in case they would both be $79,513.00. a the balance either em¬ and so in the high retiring groups, with estates worth in excess of $90,000. from the savings program con¬ tributed by the employees and the company. the retirement funds type illustrated and parisons there in not should are some problems adequately handled, the most or been never Dynamic ln makln* all of these com- i d n u s t i r a 1 results produce of invested stocks common far supe¬ rior to most of those in effect to¬ tion of income taxes. The investor day. jn plan wherein the employee puts securities tax a is subject to income his investment income and on capital gains tax when securities are *■ Tkp soid insurance u .^r bnvpr is , . at 3% in securities this gams Let just $100 matches this at assume us a year up and the company with it another invested were qualified a If $100. and realized 8%, the young man who started when he tirement was 25 would of fund continue should have a re¬ $54,156.07. This to earn 8% an return and produce an annual in¬ of come $4,332.48, or $361.04 per month. Add to this social security investment it is assumed that all under payments, and monthly retirement of from $450 is reinvested able to get re- a and he is return equivalent to the investment program will be somewhat reduced when the program is liquidated by the the* houseY a^ 8% comP°unded annually, in- capital gains tax. balance of anSy house cludinS income and appreciation, actual gains will We believe the exceed the 8%, light of the studies a 2 been years inc0IT>e insurance on 1 Im¬ 'funda ™x ifdlpe'ndentont whT in dependent on now ine in 5%, Probably bet- ferred to. With we careful have re- applied on the selection Some of these can to in excess wife. In would to be program. pass results may of $500 per man the intact as APPENDIX and principal an estate are some dangers to this The individual would be taking greater financial risk than through investing in savings in- I INVESTMENT PROGRAM: CASE NO. 1 At age invested 65 25 Savings Cumulated Due Yearly Ordinary Avail, for Liquid Fund on Earnings Savings Life Ins. , Investment Invest, at 3% a Due House on Insurance Home & on Cash Payment Interest Value of oh Insurance Loan Loan Ins. Policy Death Investment Estate Fund at 8% Living Estate $3,600 $360 $338 $22 26 $22 3,800 380 $20,022 338 42 66 20,066 66 27 4,000 400 338 62 131 182 20,131 313 28 4,200 338 82 218 456 20,218, 735 20,328 1,063 1,481 ■ , 420 . the 29 4,400 440 3 338 102 328 death 30 4,600 460 338 122 461 in ordinary life would have Savings Use Cost of $20,000 Yearly Age • ! 22 674 1 • • 31 4,800 480 1,020 20,461 con¬ 338 142 619 tinues to pay his premiums, and a 32 5,000 1,308 500 338 162 802 living 33 1,602 20,619 20,802 5,200 520 338 182 1,011 34 1,902 21,011 2,913 5,400 540 338 202 1,247 35 2,206 21,247 3,453 5,600 560 338 222 1,509 36 2,516 21,509 4,025 5,800 580 338 242 1,800 37 2,830 21,800 4,630 6,000 600 338 262 120 17,120 269 33 6,200 $3,000 149 620 338 282 126 640 $280 338 302 153 3,000 280 802 17,126 17,153. 599 6,400 3,000 473 6,600 660 338 322 201 3,000 280 his of estate $20,000, estate of if he $12,548.75, the cash surrender value of his policy. The person who purchased theterm insurance difference and and would invested have the death a living estate of $37,028.10. The following two cases de¬ 39 signed to illustrate the difference 40 in 41 6,800 42 7,000 two (See with a yearly further plans. II.) In and that out at income Mo constant is standard any from made income in¬ then to figures but only to establish base for comparison. assumed year to that put protection, he into save the home some is It can on. use budget or also 10% purchase and 338 342 270 3,000 280 338 362 362 280 1,814 7,200 3,000 720 338 382 476 44 2,161 17,476 ,7,400 3,000 280 740 338 402 116 3,011 17,616 7*600 2,500 280 45 3,127- 760 338- 422 289 255 46 3,325 17,789 3,614 7,800 2,500 780 338 442 483 3,641 17,988 8,000 2,500 255 47 800 338 462 213 2,000 255 4,460 18,213 4,129 4,673 48 8,200 820 338 482 476 2.000 230 4,780 18,476 49 5,256 8,400 840 338 502 266 1,500 230 5,602 18,766 50 5,868 8,600 860 338 522 96 1,000 205 51 6,426 19,096 6,522 880 338 542 467 1,000 180 6,750 19,467 7,217 52 8,800 9,000 900 338 562 370 500 7,576 19,870 7,946 53 9,200 920 338 582 315 155 8,402 20,315 9,400 940 338 602 303 130 8,728 20,803 500 9,531 55 9,600 960 338 622 312 130 9,054 21,352 1,040 10,406 56 9,600 960 338 622 321 130 9,379 21,944 1,623 11,323 130 9,703 22,584 2,253 12,287 10,026 23,405 3,033 13.431 25 this here 680 700 17,201 17,270 17,362 $3,600. increases at the rate of $200 until it reaches $9,600 and attempt a of ' .< invest¬ 57 9,600 960 338 622 58 9,600 960 338 622 59 9,600 960 338 622 415 It 372 of liquid cash for emergen¬ some 1,742 2,176 2,637 " 331 ments, including the maintenance a 955 1,335 1,134 1,472 43 age of that assumes the year remains *$13,000 1,927 2,404 • 54 I assumed starts man a come is it cases young It financial proposed Appendices both are - 180 - 8,717 / 3,876 14,639 9,600 960 338 622 458 10,348 10,667 24,291 60 25,244 4,786 15,911 -61 9,600 960 338 622 404 percent¬ 10,984 26,273 5,869 62 9,600 960 338 622 347 reaches 11,298 27,386 7,039 18,684 63 9,600 960 338 622 289 higher income levels, but at those 11,608 28,691 64 8,302 20,199 9,600 960 338 622 229 11,916 29,895 9,666 21,811 levels 65 9,600 960 338 622 163 12,219 31,307 11,139 23,526 cies. he It is could age of reasonable save his his a larger income taxes to as he would assume also in¬ . 17,257 66 9,600 960 338 622 204 12,518 32,834 12,630 25,352 67 9,600 960 338 622 242 12,812 34,482 14,240 27,294 68 9,600 338 622 280 13,100 36,258 15,978 29,358 69 9,600 960 338 622 320 70 13,384 38,176 17,856 31,560 9,600 960 338 622 361 13,662 40,241 19,880 33,903 crease. In both sumed that cases he home* costing he had a it has would $18,000 been purchase as soon fund of $5,000 from as¬ a as sav- ♦Paid off over 960 20 years. - a if desired. on There taxes, would have we addition, remain be resljlts could have been ob~ he sh°uld get more. However, we accomplished through the use of ln case *wo bad tbe home are using a figure that should be qualified profit-sharing and re- to cover other and can or who have have 35 five first should taking parisons old $40,241.00 and on 20-year mortgage. income, the following other the The house is purchased conservative return a If and carried out until 70 years years, years. of $31,307.00 $50,793.00. were men of inT regulal *SLd Mmost^impo'ssiMe ^oncfrnea" 11 1S almost impossible hr0wn choo^ng or in mutual of tax" inlo7vld\mw™Z which he did The he drooped comoanv vestment fund and only $16.10 the last five years is invests death who for have Reports employees of that increases; the in¬ fund a insurance the savings and the he ployed ? 10-year important of which is the calcula- he carried other company a estate of made No. 1 at age 65 there would be This is considered conservative in and the additional amounts the cost of the as individual been The final results are similar to those already referred to; In case payments is made out of savings. from1 his savings •vear . while renting. be"'applied a taxes as and maintenance the making his investments the the ^P^ased, $5^01 to> rent investment fund shares. On cost of ordinary life and his term gram, 7i as- fry N. S.policy. company until he and $125 thereafter. When a home life L. P. The other retains He 2 the and insurance rent pay 55, One ence between a 64. emergen- When he reaches 65. The Se«r,TnennLife P°"7 ?»dt.purchases of $75a amonth the next 5 years, month the first 5 years, $20,000 non-participating ordin- $100 is XT No. case $10,000 renewable term is , policy. insurance of case u/lr!^ cash value of or Co. and the In 82,000.00 investment, Roebuck pro- in Finally, when the insurance is paid off, an investment program is started by investing available savings beyond a small balance at the beginning of each year. Unfortunately he is 54 years premiums must be paid until death. ings, is illustrated by the pro¬ of such companies as Sears This has resulted from the regular available cies. $29,296.00 69,041.05* ...... x, us the would by loan _ Let grams Age 65 $29,296.00 56,589.80 of evidence practical living estate of $23,526.00. In case No. 2 the death and living estate Death Estate Age 65 The effectiveness of the program sug¬ gested gram'can^be'startedCStment Pr°" Living Estate . stop may retirement, taxes on such dis¬ tribution may be very small. at build is allowed to higher after regular income is Summary of Plans 1, 2, 3 Total Cost and 65 income Stock his II). Yearly Cost 1 because of the lack of a cash surrender value or loan fund in his the term insurance. sonal exemptions are borrowing $3,000 on policy, he is able to make the $5,000 down payment on the home. This loan is paid off over the years. Cash balances are kept low because the cash value of the life insurance policy TABLE II Plan $20,000 a Hfe insurance estate of that amount. (See Table of reducing term program the 1 buying by account 0\^ investment portfolio would be worth approximately $82,000. He would therefore have both a living and death v If stock program. a as stocks invested, This would have produced higher estates. However, the differences between for year up well as the Dow Jones Industrial Averages for the period 1929-1954 (which is less than the 80-year average of all industrial reduce net a out an(j by the time he is 37 years ings Again, had he invested in stocks doing insurance lower a funds more to the on $965 No. case When the investment was large enough $5,000 of the securities were sold to secure the down paycost 0f the policy is invested in a ment on the home. The cash fund savings and loan company at 3% was allowed to get substantially compounded annually. The sav- 'larger in case 2 than in case and reducing it by $5,000 every five years, were used, his pre- In comparison with because one ordinary life policy. The difference between his savings and the starting out at $25,000 insurance, endowment policy with a liv- ing In starts . . a case payment payments. A Life Estate in Investments had down in Oppoitunities for Building have low- safely realized. This investment is tirement funds. In such cases there made at the beginning of each are no taxes on dividends rein¬ year. It starts out at $200 a year vested in the fund. Taxes are paid for the first six years, is increased at the time of distribution accord¬ of higher to $300 for two years, then to $400 ing to the annuity formula or, if for 21 years, $500 for four years, paid in a lump sum, by the lower individual and $600 f°r *he rest of the period, capital gains tax. Because per¬ been purchased earlier on a - - . ... Thursday, June 30, 1955 . . . Volume 181 Number 5442 ».. The Commercial and Financial Chronicle (3015) stitutions and Insurance com¬ panies. This would be offset of what may happen to security prices. It reduces the risk end by The greatest dangers will prob- y«J?e with the individual him$?lf. These dangers may be listed The investor may stock mon holdings suitable are for conservative individuals investment programs. follows: <(1) and However, there is still much become to greedy and try to build his fund too fast. The line between specu¬ lation and investment is very fine, according to the recent New York Stock Exchange survey 77% of and to overstep it is fine one of the greatest in¬ vestment sins and must be avoided. long-term the program favorable or results. To periods will stock, onnnrfimitv de- even we see both *r,rt opportunity and the danger/ Common stocks for our conservative live program cannot be purchased iflnnronfiv r£-i - ignorantly or blindly. Perhaps no modern-day commodity of such significance is high return. a gained just as a only by Time high return can be can starting young, only come By JOHN DUTTON by sharing in the growth and development of our great economic system> through purchase of own- ^ship in that system. Funds for thls Program can be gained by limiting the nurchase of insnranpp limiting the purchase of insurance to protection only, by to Protection only, by postponing postponing T: if if drop to liquidate at common the the (2) The investor may fail ;to follow through on his program. The results suggested are based upon When it is realized that the population could not dangerous. is and and be done. Greed individual an effectively as he can work for increases the capital growth prob- himself. Two things are essential abilities to the extent that com-i for money to be productive, time protection of purchasing power." as. work, for 3L the necessary necessary non-monetary Vacation Story *?ever know where you nothing jVfY lind a g°od idea—a story for happens 1S column or ~ --1 ?p1^cn°t11umTn~or even a new client, requests unusual miy l was sitting around . a r' swimming pool enjoying the FlorCnjuymg me riorIda summer weather 9nH t values of home-ownership during .r~ summer weather and I made da v,aiues oi norne-ownersmp emu imaae the lincpftlprl nerinH r>f ine acquaintance of a vacation the unsettled period of early mar- n ® luaintance of a vacationing ried life, Doctor from a northern city. Be- about this'are it immediately-but y UUL Selling Then he taken let's Aei s Too got had "by^li- made as ents they should be no this regularly. _ pare go of on on. Soon around to his Tbe risks of such a purchase a well balanced ld^rruPtl0ns from the de- stocks. He people in uie field have acted as bave been and can be icuuceu iivpl pcuyie m the neia nave acted "c reduced account and i must 7„i11?Jhr,ee medium sized account ana I must - "— ---though they were afraid to dem- through investment plans such as dem¬ f ^ t 6 ~ admit that there were a number onstrate their onstrate their product. Too often UV,11CU dollar cost averaging, monmr <aveiaging, monthly h* t hiQ /rfxicfJi0^ h^.told of g°od, sound, growth situations to'the in the past they have been too stoc:k Purchase plans, mutual in- lpm<? have, been too to- lems> and h.J'among his holdings. Since he his broker/'Somettais was in his much interested in un- spell loss, undersold. Even so u (3) must In purchasing protection he be to sure buy renewable term insurance. Otherwise he may —~ become uninsurable and lose his making . ulative protection. (4) profit for develop investment He must be the emotionally common is by fields for the future in investments. As we wake up to even its cost. still programs and to be developed. Some of one the great plans, company other many to for programs This man. vestment a spec- themselves so as not to be frightened fluctuating security prices, though his portfolio may show temporary values below possibilities, programs the Possibilities of securing these high this wau As great possibilities that it the saver, it behooves programs for relatively safe and are the small Some progress line has been made. " trial investor evidence Arts on funds have established investment for the small cost of be can to used with wisdom of an was on on — » - vt pages listing articles and only three all a the articles much evidence indicate me a he owned ot should,be program starting in the of.life, especially be- years know which. He said he ieft^his .^rather hurriedly ad essen- X X if invested long early pro- , , enough will pectations, time can . , the and a make young modest a long himself proex- man amount of finan— , cialty able to provide for the ture whether he lives Money ; can up period gram, it is essential to understand opportunities. STaiPmpnt ^. duce results well beyond most over an f nuf* mvestment of $100 and regularly However, to understand i was or the fu- dies. tn coo if 1 count. He said that he was too busy and just couldn't get around it. Here was a typical case— busy Doctor, didn't remember if to he held not the checked certificate, his and had statements from bis broker. He depended upon his registered representative to make a check for him There time to give to his counts any yearly Cumulated Cost or bavrngs Avaiuoie Liquid Lund Insurance for Investment Investment yearly ; Earnings Savings $3,600 $360 $131 $229 26 3,800 380 131 249 27 4,000 400 131 269 Savings Used wue on Home on House Payment $20,232 20,494 162 420 131 289 ... Then he told me he had sold out growth stocks such as Carrier in the 20's and Radio in the 30's with only small profits, whereas he should 440 131 309 381 30 4,600 460 131 329 527 " ' 31 4,800 480 131 349 597 32 5,000 500 131 369 689 33 5,200 -520 131 34 5,400 540 131 389 5,600* 560 168 36 5,800 6,000 580- 168 412 168 432 620 168 452 818 38 6,200 6,400 6,600 39 40 640 168 660 168 41 6,800 680 42 7,000 700 43 7,200 720 168 ' " 130 130 512 ~ 130 793 826 552 879 , 44 740 ' 168 760 7,400 7,600 45 168 < 288 A- 572 7,800 47 * 8,000 780 * 800 288 ■ : "288 r • 492 7 * 820 8,200 ' 49 840 8,400 50 860 :917 8,800 288 - 1,106 592 ^ 1,209 ' 900 * 52 9,000 :.53 9,200 9,400 h 920 940 288 V 55 9,600 9,600 9,600 9,600 960 57 58 59 61 130 130 1,634. 130 130 960: 310 650 1,712 1,811 1,925 2,042 960 " 310 650 2,163 960 310 650 650 9,600 960 9,600 960 .' 650 650 2,684 65 9,600 960 960 2,739 66 9,600 960 960 2,795 67 9,600 960 68 9,600 960 9,600 960 9,600 960 69 70 ♦Paid off over 20 years. 960 - 2,854 960 2,914 960 960 2,976 3,040 , 42,200 2,548 310 130 2,416 310 , 64 130 2,288 310 960 .63 130 130 130 * 9,600 62 I 1,485 650 7,431 8,367 10,531 11,771 13,127 14,607 16,219 17,971 19,859 21,895 24,109 26,607 29,298 1,335 "650 6,583 9,505 10,665 11,918 13,272 1,559 A- 5,020 5,827 30,531 31,771 33,127 ' 34,607 36,219 37,971 29,859 31,895 34,109 36,607 39,298 650 310 26,583 9,399 652 310 1 4,141 4,872 5,661 6,514 7,435 4,290 8,430 650 960" 2,256 2,836 3,464 29,399 310 960 9,600 9,600 9,600 ;.eo 288 . 1,719 130 310 . 960 .56 288 1,221 27,431 632 " 54 760 28,367 612 • 4,225 4,963 3,614 4,283 4,987 5,766 1,625 2,039 2,510 3,038 3,639 130 ' 1,026 572 * " . 130 969 3,542 25,827 130 932 552 288 880 8,600 51 A 288 ' • 130 130 532 288 2,323 2,909 24,290 25,020 130 ' 48 1,164 1,457 1,873 23,629 130 « 922 512, - 7 955 472 ' 46 $130 791 782 532 • 803 1,152 1,545 1,984 2,470 3,012 25,766 21,625 22,039 22,510 23,038 *$13,000 472 168 :• 762 492 A 641 24,283 24,987 865 . 494 892 23,614 ' 803 600 37 392 $232 408 23,012 741 35 $200 22,470 705 409 " 45,328 48,699 52,334 56,253 ** have held such growth for the long pull and situations disregarded that trading with agreed him profits. and I anyone who had am I sure busv doc- a tor> in the higher income brackets as a client> who has bis eye on interested was 50,793 55,694 60,984 66,694 72,858 79,513 • above comes be 14,734 16,412 18,225 20,183 22,298 24,682 27,256 30,037 33,040 36,283 39,786 43,569 48,054 52,898 58,130 63,780 Get The Doctor? ■ Viewpoint man not was He a realized that his broker was busy, and also fallibly human, but he was un¬ happy. I don't think it would have taken much persuasion to obtain his account—he was not comfort¬ able because he did not have the feeling of confidence that vestor should doing possess business with ment firm. This man in¬ an when he is invest¬ an needed above average personal interest—he not getting it. Some was people do not want super service, others do. I am positive that there is a great deal of additional business that every firm can do among its own customers if they would only have a with many find heart real of if out to can them heart talk clients their they better—give and .them serve sounder in¬ vestment suggestions that upon their particular based quirements, and are) re¬ personal more interest. ' " It's like the Doctor said to me, "When you need medical help, try and find competent Doctor; who time to give' your adequate consideration and will a take case 38,699 42,334 your the personal work." him It's a the interest fair same fee in his with way investment advisor. you, for " With Harris, Upham 46,253 79,513 : complainer. pay 76,473 the selection of Customer's This cronic a 72,858 to and that objective I wonder how many firms have clients that feel like the busy then 69,882 long-term main i 32,200 35,328 66,694 in else, investments. take 50,793 50,694 60,984 all his Estate 21,545 21,984 260 4,400 Living 21,152 v 4,200 Investment Account 8% 20,803 * 28 ac- ficate arose." when it Death Estate Insurance Plus Investment 86 29 customer's more. growth should $32 y rupmng I changed to someone else in the firm for a JY1?116 and then back to him. I think that's where this mixup with the misplaced stock certi- He 25 +h^lways.so busy around retirement fifteen years from now, would not criticize his viewpoint. INVESTMENT PROGRAM: CASE NO. 2 Age to $ sell. ^ 3 v, hSf i A®,15 °ne °lthe partn?rs 1 s broker held thg gtQck APPENDIX n Balance of x or * : v ^ broker'Ar^ hV^T °fd A firm that I other^atos'Vlto deals and don't think he Droker, he had misplaced it, has tha m save ,. hppn fual,?art ?f evfry fldanciai Plan- rew^LjI -d reSls,tered S ^TIih6"^ ! H fJ [ ^ fore he left btit^^didn'Tr F b add dld' but that everybody receive entitled to the advantages of a return tpipnhnnp in ^eturi1 him if he ctali from him. telephone looked at his this type of return. A small a®ked will importance of had o ori^ I°a ^ \s ouf c°riclusion that stock . There stock dividend and the which he owned certificate past. satisfied. regardless that LerTannthehepasfUre Wi" ^ who the to that an- young man's investment early , fore many other needs have been confidence success was ' making an overall 80-year average of 9V4%. There is also „.,^l possibilities of dollar ultimate 80 Many people will question the averaging is opening the eyes people. Through dollar averaging we have a formula that « is ... as year's one over Conclusions many cost In investments. Monthly Stock Purchase the difference r change has made securities avail¬ able to the small investor that did not exist before. Increased atten¬ to A —* to covered on investor. Plan of the New York Stock Ex¬ tion -*—* wnu <12% the Index. insurance, listed new of something devoted were along this pages programs man who rlip<; who dies. man man volume pro¬ Many of the mutuat investment The ^ - cv/ in emphasis, the author was look¬ ing for information in the Indus¬ industry to develop types of ductive. early forties and well ... a for thp the to which , 1871-1937, covered by the Cowles wverea oy me uowies lnveslments were on his mind, .lot better since I ve been doing some stocks hold out to the man who Commission report shows average studying and selecting the The Little Things xiiuigh stocks myself than when lives the same my man opportunity for returns of 8.8% and that the reHe told me that he wnc hit financial gain as insurance does sub5s since then have been nearly bothered about 50 shares of stork what u Co* was telling me ple in the security field. With the type of product they have to offer the . established in his practice of whpf hi t Z T medicine, it seemed to me that his that his iective thflrTiP hl medicine, it seemed to hlf winfon" aboutTou6 g'«"gt y°U aituation was well ,conhis behalf In this AAA,!" str"ct.e<J with emphasis on growth tor's broker 1 'ifMimiiif ?Ic! so' But he an" and he vacation^ although rZhT^u 1 th{,n* *,am ,on the his investments'were his S wt ck ?ow' Tbut X've done a case developed in this field have Deen in insurance, Common been in insurance. common These opportunities and risks should be a challenge to the peo¬ offers H „ me question may returns through common stocks. will be In thia respect we have pointed as they °<jt that the 67-year average, - and : viewnoint ™ people nave stable it ! (Special to The Financial Chronicle) SAN A. FRANCISCO, Calif.—Jack Dalziel Upham & Street. is He Consolidated porated. now Co., was with Harris, Montgomery formerly with 232 Investments Incor¬ The Commercial and Financial Chronicle 32 f»wm nnno i^onunuea jrorn puye . . as "miserable, abominable, and fraudulent"; and ■ ' ~ - — Platform „ go a premium for gold, if in order to maintain a level at the bank—that the Bank of England had been known to pay as high as 4 pounds sterling per ounce of gold, and then coin that gold into English coins carrying a face-value of only 3 pounds 17 shillings IOV2 pence (which was the gold-standard value of the pound sterling for generations)— that the bank thus took a loss of from 2 to 3% on the money itself. The Bank of England did that for ond pay necessary, proper 20.67 namely. When it paper-money claimed had issued a carry terms of tamed oft-quoted An which . in changed has_ never thJs L U io w , 412.5 grains of silver, u 9 line and if- you read the legend on a One-Doilar Bill or Si ver Cer -tiiicate, you will find it to spe real cify that there is On Deposit in from passage raising of the denomination ther coin has been the most •of expedient by which a usual Koriirriir»+r«v v>uKiin has the Treasury of the United States America One Dollar in Silver dis- hppn of status Currency the successful waging of that great our 'able id." the to Bearer therefore, not only helped to re- felt that the United States ought store the'Gold Standard in 1879, 1792, Adam Smith's book is as follows: "The John Sherman, 1875-1819: As leading Congressmen in Washpreviously stated, the official- mgton; and before leading bankprice of gold> at $20.67 a fine ers and businessmen in New York. ounce, went into effect, as plan- And that "address" became the ned> jn 1837; and nothing further basis of his monetary masterpiece. happened to our currency for "Fiat Money Inflation in France.' more than two decades. But in Andrew D. White, therefore, tbe year 1861, with the Civil War played an important role in getUpGn us> and with heavy demands tln& our Currency restored to a on tbe Treasury, there were those true Gold Standard in 1879. wj1Q started to hoard gold. And, Again, in 1896, when William order t0 conserve the Nation's Jennings Bryan had been nomisuppiy 0f g0id in the interest of nated for President on the "free all tbe peopie> instead of the few, silver" platform, Dr. White's book our Government, quite properly, was reprinted in pamphlet form, temporarily ^withdrew the privi- and was used as campaign litera- us J* atesi paper-money be main'as good as gold. ; that that on De- It therefore, becomes evi- the leader in that m0Vement was th then Senator John Sherman, ho later became Secretary of the Treasury in 1877, under President Hayes. Mr. Sherman was the chief architect of so-called the stored our abiljity" currency in Daniel Webster, 1834: Again, in 1830's, there was agitation to with paper-money, aland .use nothing but of a pretended payAnd we are paying for it "inflated" the of form the prices the highly do away known to, together, most ever this nation. specie; ' strongest the and oppo- nent of that ill-advised move was Alexander Hamilton, 1792: Just the great Daniel Webster. Addressing the U. S. Senate on Feb. as a new nation, in 1789." It soon 22, 1834, on the subject "A Rebecame apparent that we needed deemable Paper Currency," Weba national Currency; and, in 1792, ster made the following contribuunder the leadership of Alexander tion to the cause of Sound Money, Hamilton as Secretary of the He wisely said: Treasury, the American Dollar "I know, indeed, that all paper 13 of Hamilton was what is born. was the publication of Nations," we set out after years "Wealth ought to circulate on a specie basis; that all bank-notes, to be safe, must be convertible into bi-metal man—he beour currency should known as a that lieved gold and silver at the will of the holder." And he continued with specie-backed with both gold And he was very wise that view at that time; for in be ^nd silver. in these monetary sound of words "While banks are bound to redeem their bills by paying gold and silver on demand,, and are at all times able to do this, into effect. That is a possibility banks which have suspended spe- White found that France, being in cie payments. On the contrary, it is the representative of gold financial times valuable as "value" a as silver; and gave the Dollar of 24.75 grains of fine therefore, they, gold-which 24.75 is exactly l/15th 371.25 the ot the silver _ ^ as the those ' arrangement that Under in for of the Dollar. value lar, set our It«4-L/v i originally set in 1792. But, parlv 1830's there were silver, therefore convertible and gold and silver gold and silver; and credit is in this purposes long so of its as sustained, it is the cheapest, the best, and the most J : way convenient T1-. _ 1 circulating _ "i _ me- i White graduated from Yale 1853, and was promptly given appointment attache at St, He spent the next in Europe, much of three years the Among history of the French Revolution with par- those studies ticular was reference to the type of France used at that time. money barked difficulty on a in program 1789, of em- "irre- deemable" paper money—the type of so-called "money" that the United States has been using since 1933. The initial issue 400-million mated approxi- paper francs, which seemed not too disturbing. But it wasn't long before France i t and pay specie oaoinct that that At made idea any by the by bank, ! pp„ single moment one demand on in gold and silver. Those are the words of Daniel spoken 120-years g?04'5: Th7 wer« true when hey ; _ longer than such paper is redeemable yer-content of the dollar as orig- Webster, year 1797, or within this as keep its government are his . - in house own order- to maintain the gold-standard un-i impaired; to balance its budget;' and to out carry a reasonable programforthrorderlyCd.ng and gradual liquidation of the Tt war '« wil1 hp nntpH <Mp1 Mr fhaf loBDVaced^^maintaintoV^he Sd of"^allncihe stantod"ahead the balancing tne anead 01 u correctly believing that . budget should be balanced in -- "7 tresem ^aminisirauon ^ seems to be^ overlooking, for it ^ r" J o! e?f fhF nitTtc tn theiF 3 fu i?e ?°i stand" whlrch bold the planets m their ard unJl ^ budget has been courses. balanced. Why, nothing could In that statement Mr. White is possibly give the people greater saying that once a nation estab- confidence in the American -Dollishes the "value" of its monetary lar than for Congress to promptly unit in terms of a definite weight pass one of the gold-standard bills of Gold, it has placed that "mone- that have currently been ;introtary unit" in an orbit. And one duced; and nothing could do more h k « can no more to prevent further Inflation. Such a*} A?t need not await "balancing t,he budget ; for, as in the * pnce of gold from $20*67 to ?35 pr®^„ fit?'P °jLI Zll ' , , j ^u'♦ r Henry Cabot L.odge j ItannirH g &ianaarcl m loyyAn agair}> *n 1900, after President McKinley had been nominated l°f a second term,; it was the distinguished Henry Cabot Lo(Jge who was delegated to go to Mr* McKinley's home town— Canton, Ohio—and apprise Mr. McKinley that he had been renominated for President. And on . that occasion Mr. Lodge delivered a" address at Canton, in which complimented President McKinley on the sound stand he had taken on the gold-standard issue; n/4 TV/Tv» i T structure.". Henry Cabot Lodge, deserves ereat .ounce—^which violated the flxlty of value" principle of the Gold Standard; and they withdr^ the Privilege of "redeemability, on demand," which violated the only other basic principle of the Gold Standard. In the perpetrating of that "dishonest" act by our political leaders, few people seemed to have realized what was happening; but it was the most fraudulent piece of business that has ever been foisted upon this nation, Here is how it works- Raisin? official-Trice the of gold from $20.67 to $35 an ounce automaticaRy reduced the "value" of the Dollar, . . _ _ affected credit t» itself t both from the about l/20th ' Treasurv and -L' i_ * » ago. of that "printing press" By that time that paper- money. had well-known official-price of gold, namely, $20.67 a troy 'ounce, which became effective in 1837 193s5. New York in 1908, Mr. Carnegie gave strong support to the Gold Standard in the following words: depreciated in purchasing-power that it had become - practically worthless: and, the money were White _. w w francs so as Dr. "There is only one substance in world which cannot fall in but the after the Treasury worth of increase" owned gold Treasury made about $3 billion. oS tlf.ch price' in $7 billion Therefore a quick as the profit of But there is points out in his book value, because it is in itself the other side to the coin, grainsto23^2 grains-^and that Stionshfp'bD^al'so^ resulted *?n Go1; Standard m 1933. And they that tu •• therefore, . ... apparently had that change Congress. It was rate, aeeomplished hy leaving the sil- that to R"dge " n -m iKo nntec- Here oaner-monev words: in as Petersburg. far nwn able" an the time in further study. of banks which do not their far so v merit. was the answers into demand, and on relationship that it ought and con- is not in an odious sense, It is not like the Continental paper of Revolutionary times; it is not like the worthless bills of and »«jn r that the proper relationship of gold to silver was 15 to 1—i.e., that gold was 15 decided ess, and safe currency a W. Mellon wrote a book, "Taxation: The People's Business," in which he gives strong support to the Gold Standard in these words: vpar paper money, 412.5 Such of the finances of this nation, reduced the National Debt from $26/ biljion to $17 billion—a reduction of $9,000 million. ^ In 1924, Andrew » they gave it a "value" of grains of silver, 0.9 fine, exactly 371.25 grains of pure silver. They then, by some procFirst, or is currency venient. fui and skillful handling 1670s,^ such, legislation can be made to provide for a time-lag °* on?> or more, years before its effective ; date—thus ^giving- the tln?e condition itself lars, instead of "printing press" ■'1ftS.e,lSn?aT3 (the elder), for this change before actually dollars, is something that is hard J? J?"? L WkS n. n,!7 Rating it into force, to understand. " Cabot Lodge who wrote the goldNew Deal-Fair Deal, 1933-1953: Andrew D. White, 1875-1896: o/lSQe Itw^he who Notwithstanding this nation's 140 Another man who rendered great wpn+ +hP qt foni« Tnnvpntinn 5fears ,9,!:0SdUnd monetar.y policy service in the development of nf that: and demanded nf £°mn ?j 1933, what did the public opinion favorable to re- Mari, i/flnno ; +he Rennhliean New Deal do when it took over in turn of our currency to the Gold f?^pr ™ ' ii shnS niaS J?33? ^hy' one of the first thin Standard, and which restored it hpinHndPd in thl platfnrm Mr ^as t(? throw the Gold to "redeemability" as of Jan. 2, J™ hurthi«Vav- SSanient ant ?utandard out the window.' This 1879, was Andrew D. White. Mr. ^7^Vt in/n VhJ'ruthey dld by raisinS the official- policy: the when nations resort to "irredeem- disturb that unit in its orbit, properly, than he can Treasury officials are taking the disturb the planets in their orbits. position that we can't go back to As he so truly says* there are "fithe Gold Standard until the nancial laws as real in their operbudget has been balanced. Just ation as those which hold the why a budget cannot be- bal- planets in their courses." anced in terms of "honest" dol, . which the present Administration seems to be overlooking; for the this nation possessed very gold—as compared with the 22,000 tons that this nation owns today. They, therefore, established the "value" of the Dollar in terms of each of these rare metals, 1792, little Andrew W. Mellon, 1921-1924: In 1921> Mj. Mellon became Sec¬ retary of the Treasury, under President Harding. And in just ' three years Mr. Mellon, by care- the principles of "fixity uf value and Republican Party in the 1850's., "redeemability, on demand. With lt should 5e noted that the piece, approximately.- That was the gold-value of the Dollar, "Resumption Act of 1875" did not "raising the denomination of the/however, our Government has, at become effective until 1879—thus <x>in"; and in the words of Adam - times, erred;; and that will be an0wing a time-lag for the counSmith, it was "disguising a real dealt with a little later on in this fj.y condition itself for this public bankruptcy under the ap- presentation. . change before actually putting it in Star.".,. "redeem- to dent that insofar as the silver Greenback era from 1861 to 1879. "value of the Dollar is concerned, Great credit, therefore, is due coin" by our Government has never devi- John Sherman, who, incidentally, $20 gold ated from the gold-standard was one the founders of the pearance to call the star nearest of all stars to the true north, the North re- following gold, book pretty well sums up his view as to what is bound to happen "Re- demption Act of 1875," which -taking what had been a piece for a matter of a century and declaring it to be a $35-gold anent." about bodies—that it is the one t? get back on the firm founda- but also to preserve it in 1896. tlon ot the Gold Standard; and One passage in Andrew D. White's debt." ^ound-money principle envisaged in that quotation — they "raised the denomination of our of which body he had formerly been a member; before a group of Jnc.dentally, you (be in- continued until 1879., But in the political battle, Gold Standard tyested to know 'hat the early 1870 sthere were th0Se War versus Free Silver. Mr. White, with the Civil who of the Dollar in terms of silver, behind a det'n'te ™!ue Gold, that bank had the honesty and integrity to seeAo it to f ,, A , "a dollar on a fully gold basis." It prompted him to de- France. velop leg? °f "redemption" in gold— ture by the Republican Party in is concerned its policy has been Unchanged "Value" just one reason, . the result. as to convertible / strict accord with the gold-standard principle of "fixity of value' —as it should be. In times past, I often wondered why our Government had happened to choose such an odd value as $20.67 as the official-price of gold—instead of a round figure like $20,. or $25, an ounce. But the answer is very simple: They had set the "value" of the Dollar at 23.22 gr. of gold; there are, of course, 480 grains in a troy ounce; and 480 dividend by 23.22 gives the bank never hesiinto the gold market says to promising return of our currency — Dollar: 1792 to 1955 tated those French Revolution which the solar system revolves;-* experiences into the form of an and continued: "To object to gold; address, which he delivered be- as the standard-of value, there-; fore the New York State Senate, fore, is as if we were to retuse1 seem we tit A "A Iff A VI 11 niSIOIV 01 -IIlv,v'ftlllvlIvClIl + the unfortunate footsteps of its position of any of the heavenly contented to do this, even though the present Administration has a plank in its 1952 " lliftlnvtf Smith Thursday, June 30, 1955 rectly* described 5 o B •> . (3016) an- follows: of^V.t' paper money with other civilized nations have as their re- more than $125 billion of dollar3re today* But notwlthstand- wastepaper and trash as of no serve." assets, in the form of bank dethose truisms, we are contin- value whatever. When, therefore, He likened the Gold Standard posits, Government bonds, and life . atten- insurance benefits—all in terms of "S ^oT?ourseWwasU?n currency that Daniel Webster of the 1870's, Mr. White was fearful tion to the fact that the North aMe" |)3Per-m°ney-a type inai, o that gardl'eVs of "he 'vllue" of the Dot lar itself. 41% "devaluation" , u*ng to operate with "irredeemcor- we were we in the Greenback era might follow too far of in to the North Star, calling Star is the most nearly fixed in The Volume 181 Number 5442 *;The Commercial and Financial Chronicle v.. '. , , -rimrJ . . {> , ; . t (3017) of the Dollar, therefore, robbed the People of more than $50 bil¬ lion of the "value" of their States to pursue after the close of World War II: " sav¬ "Finally, the United ings; and they have been paying for that ever since, by the degree of its Inflation that that "dishonest" act brought on. For ounce of former ounce gold "value" l/35th of as — of against l/20th per dollar—it 70% more dollars same gold-value an the of as used an requires equal the ward be a 15c paper-^-and And were milk; if 5c so there 3c ad on be as be sure leading economists from further green were to apples. And that assume if lar of years gold-producers has been in Washington, and using effort to get high as Government $70 automatic its present of ounce gold dollar to per "value" of only l/70th of per dollar. That would 50% of "devaluation" of dollar; and it would an far more form of bank deposits, Government bonds, and life insur¬ benefits already paid for; and a 50% devaluation of the Dol¬ ance lar would rob the People of more than $250 billiomof the "value" of their accumulated savings. And it before prices double what they are wouldn't would be be long today. That is the in France French the Revolution; that is how it in Germany after World worked War I at it worked period of the way when — paper-money volume that "printing press" issued was in such by 1923 it required one-trillion postwar marks to equal the "value" of just one pre¬ war is mark; and that is the bound resorts to to work when way "irredeemable" it nation a paper- a to "a convertible dollar gold on But, to have forgotten promise. Why, only Sound a that few months a Secretary Humphrey defined ago Dollar "a as dollar operation planets as tion of in their courses." Edwin W. Kemmerer, 1900-1944: The greatest monetary expert of the Twentieth late Professor of merer, the was death, is In cen¬ that book (page 123) Kemmerer says: "Had Roosevelt, immediately after his election, joined President Hoover in a bipartisan declaration, of the ringing, Grover Cleveland type, that the existing gold gold maintained standard all at and the would dollar be hazards and that, to this end, all the financial of resources would such be the United mobilized if States necessary, declaration, coupled with a reasonable policy of party cooper¬ ation, would probably have pre¬ vented the disastrous collapse of our currency and banking system in early 1933. In that case the on a fine the ent—as ounce breakdown of with the its American gold subsequent de¬ valuation of the dollar would have been avoided." And the last para¬ graph of Professor proper this Kemmerer's action sound for tends People Do? United the Congress first dollar; and "sound" has been the reasonably "stable" without "sound" a a dollar having until firmly fixed in terms of basis of "value" for rency, plish recog¬ proper nation's a cur¬ namely, Gold. To accom¬ Congress should pass this, /one of the gold-standard bills pending, calling for fixing "value" of the Dollar at $35 of Gold, and a now the fine restoring the The position on new date, following "From the founding of our na¬ 1933, with interruptions tion until of serious the war, dollar was firmly attached to gold. The gold value of the dollar, established under Washington and Hamiliton, changed, except frac¬ tionally, for over 140 years. The not was confidence in the value of the dol¬ lar which this helped instill in our people and countries tions of the was the success." people of one Nation's the of other founda¬ spectacular But strange as it may seem, Mr. Burgess was appearing, on that occasion, as an opponent of our Government's returning to the Gold Standard. ment by advice the as United an hearings stock and Bankers, Inc. The shares offered on share one unit a of basis and one stock at price of $23 Net a share proceeds from the preferred and will be added to the increase the receivables acquisition Personal Loans made are on is mand states, Maryland, loan Kansas. For hearings Flanders, 6 in 1955, year gross ended revenues March of the 31, and tion of were as 7, held 1954. by Chairman "Subcommittee Those Senator of tion reopened. more would be by most distant and considered workable size by could by be in some having it reopened time, however, is how under existing as strong as ever, indications that greater selectivity is being are of some to be about seems the 3s due many of market conditions. De¬ money the mortgage a lending substantial investors, which agencies. amount not of Private the loan¬ that the attrac¬ means long-term government bond must a rumors The issue the with only be measured with the return available in corporate bonds as well some public of prevailing pension money market funds and to a conditions, it lesser funds, would be the important buyers of pension ernment preferred as cases, common stocks. Under presently though as degree a purpose. seems private long-term gov¬ a bond, most likely the 3s due 1995, which would be re¬ To be sure, there will be other buyers long-term government bond, and in the amount that such a obligation is sold that would outside most of the commercial banking an system, likely be going into mortgages would used to finance the needs of the of the company be Treasury. The Potential Demand for Long 3s will consist $775,000 of funded debt; 60,000 shares of stock; 2,473 shares of 7% preferred stock; 14,021 shares of $1 cumulative preferred stock and 554,725 Guesses $1.40 dividend prior new preferred shares of in new a (Special LOS E. to The Financial of amount of money that would government be bond a invested to appear quarter billion dollars, and the low side somewhat in half a billion dollars in dollars. a It seems as one excess long-term bond though three-quarters of is what some money specialists believe would be taken by those that have in such Chronicle) an an a market interest obligation. has & rejoined H. L. Co., Inc., of San Joins H. L. Jamieson Francisco. (Special the LOS to The Financial Chronicle) seph - ANGELES, Calif.—Donald Drysdale Merritt is now & Company, Broadway. with to The Financial Joins Dean Witter Chronicle) (Special SAN With King Merritt (Special South the raising long-term ANGELES, Calif.—Phillip Sperry Jamieson J. to money rather widely, with the high side in the neighborhood of vary and as common stock. on System, econo¬ mists, bankers, and others—among whom was Mr. Frazar B. Wilde, be money purposes by concerned are financing, outstanding capitaliza¬ of Economic Stabilization." In attendance were high officials of the Treasury and Reserve will which mortgage money stocks and in funds Upon completion of the current Rejoins H. L. Jamieson on a new com¬ aggregated $1,277,073 net profit was $181,633. pany state¬ Washington and for opened for such the raising securities help is going to be given to time. though there offices and deposit banks will against these two forms of investment, but also must be compared The Florida of the money comparatively small able funds of institutional Pennsylvania, Virginia, 1995 a to proportions exercised secured and operates 28 company in five than new specialists placements continue to absorb Bankers, obtained. of is could be sold even basis, and wherever practicable, insurance on the lives borrowers issue bond time to 1995 as¬ a market The question at this for Industrial volume of the long-term issue for a money 3% up from of and a the financial district shares additional of the built the company's working capital. The company in¬ tends to use such funds primarily to that the first part of the institutions by the monetary authorities. This the talk about the issuance of a long-term government up government unit. sale common the commercial common per than more that are preferred of of changes made in the no mean other sources token amount no Treasury, consisting prior stock it was, as quarters Re-Opening the 3s of 1995 evident that being given to 60,000 shares of stock of Personal Indus¬ of insurance executive at held December a is a billion brighter side, is This appears to strong as many obligation which would appeal to non-bank investors, mainly at this time public and private pension funds. When attention is June publicly offered 60,000 shares of new $1.40 dividend prior pre¬ Money for Future Delivery On the that there will be are requirements reserve money brings lending money to individual bor¬ rowers, primarily to wage earners in widely diverse occupations. Appearing before opinions in if on March 29, 1954, gives little encouragement to those working for a return to the Standard. lowering of not appear to be though the On Inc. is engaged in the business of Gold now the by Mr. W. Under Secre¬ a area sets from others. Burgess, tary of the Treasury, a raising operation of the Treasury probably between $5 billions will be carried out without altering reserve requirements of the commercial banks. * 24 ferred hand, the secmingiy and $4 Bankers Stk. Offered taken Randolph as immediate future. the trial commodity that is by the world as a talk about or seems financial Personal Industrial common one nized a rumors deposit institutions does have to take quite can't have other aoout now of on the oring that it It Johnston, Lemon & Co. On could in fact since States. the Dollar we made The of the Sound Money—can write their U. .S. Senators and Representa¬ tives, and demand that prompt and favorable action be taken on in or to The pres¬ herein; of the gold-standard bills bank. economy further complicate matters. Also, business activity is expected to continue at a rapid rate and this will mean that funds will be needed from the commercial banks in order to carry out this part of the picture. are pending the move ahead in spite of the increases margin requirements by the Federal the Treasury will have to raise $10 billion of new money in the last half of this year, been Board. $8 some is one commercial of unorthodox action by the powers that be. or have Reserve and opposed to the fiction that "irredeemable" paper-money a dollar Federal offers which privilege of demand, rein¬ summarized all who the market continues to Dollar a standard book of Standard the monetary leaders—past and wide cannot have throughout long before masterpiece on science. monetary return of Those having faith in the great of and not a "value" Can statement: Kem¬ tury. His last book, "Gold and the Gold Standard," published in 1944 (McGraw-Hill) What University. extensively, assurance a Gold Mouth rumors about the impend¬ ing financing. There is no question but what the position of the monetary authorities at this time is a very delicate one, since business activity is quite dependent upon the expansion which is taking place in instalment credit and mortgage debt. Also, the equity unsecured W. the first four decades of this his i wrote Kemmerer by the firmly fixed at $35 of Gold, and the Senate Committee on that Mr. Burgess made the Edwin Princeton Professor lectured Century that "stable" dollar; but it is of the mark as to what constitutes a~ "sound" dollar. We far real in their those which hold the the That only to "Open The money market is still full of will privilege of "redeemability," demand, at that fixed value. as had —with buy the same tomorrow, next week, next month, and five years from now as it will buy today." Now, that is an excellent defini¬ wisely said in his book, "Fiat Money Inflation in-France," there "financial laws un- fortunattely, the Administration seems nunce are nation paper. of means $10 Billion of New Money Required "pur¬ stated. fully a basis." money. As Andrew Dickson White so be this "redeemability," Cur¬ our dollar. per can indus¬ Republican Party plank in its 1952 Plat¬ pledging return of rency a today than back in 1933; for the People now own more than $500 billion of dollar-assets the form ounce present successful a ounce largely fi¬ that -the included new serious in fact an mean our be a Standard and States to the Gold Standard were given great encouragement by the drop¬ l/35th "Gold by Mr. those of position conflicting chases"—that it shall be in dollars a "value" of l/35th of an 1952, those of us who were working for a return of the United ping of the "value" of the Dollar from the in to what might be expected The announcement that a current carrying In ounce—which an the on used we as year. as requirements with our insurance premiums and bank deposits, shall be of the same "Quality" as the money JR. reopening of the 3% bond of the medium through which the Treasury will be able to limited amount of long-term money. At the same time, it appears as though there will be no immediate changes in reserve 1995 raise livery," of gold, privilege demand," The Eisenhower Administration to as age-old the calender Indications, as put forward by the Operations," seem to forecast the should demand that the money we have bought, "for future de¬ of the Dol¬ ounce trialist, Philip McKenna, is working hand-in-glove with Dr. Spahr in that worthy effort. to mean the "redeemability, nanced every official-price of Gold raise the would the fine a League," founded lobby of operating a $35 restore And tampering with the "value" of the Dollar, the follow¬ ing facts should not be over¬ looked: several Spahr reasonable get the United States to at that fixed value. may not be further For at and the accepts depositors' dollars is "selling money for future de¬ livery." We-the-people, therefore, nation firmly fix the "value" one there this ba]a«ce . that using every effort to Inflation—just Almighty made The as been of to. Coast—Dr. Coast CHIPPENDALE, is the offering of Treasury bills will be increased by $100 million for an weekly indeterminate period and be part of the money raising operation, indicates the Treasury has yielded to widespread de¬ mands to increase the supply of the shortest government money 70 of the some market important clues protection, and then get dollars of much lower value." only companies "selling for future delivery"; for every bank in the United States has further little make present sacrifices for future Monetary Policy"—an organi¬ money Governments on awaiting the coming financing of the reasury with more than a passing amount of interest, because it is believed that what the government does in the impending operation will give pretty wicked thing to consider the possibility that • people will not Reporter By JOHN X. The Now, we should not overlook the fact that insurance companies are on news- Our a the zation composed of "devaluation" of the Dollar, there would Wilde forthright past 20 years, as Ex¬ Vice-President of the "Economists' National Committee infinitum. to were Mr. "I may be biased because of the fact that my business sells money for future delivery, and to me it is ecutive $12 shoes; 25c a address, following Spahr, 1935-1955: Dr. Walter E. For we pay up¬ for the statement: standard and for inter¬ national cooperation to make that standard a better standard." of $2,000 for what used to $1,200 automobile; more than $20 for what for for prepared made its gold formerly, i.e., perienced, all along the line, since "devaluation"; rehabilitate the restoration of the international to do, or 70% more dollars. And that is just about the degree of "inflation" that we have ex¬ that States Gov¬ promptly declare to ing to return to a gold basis, with the object of formulating plans for takes $35 to do what $20.67 now his gold standard after the war, and snould call an international conference of all countries desir¬ now to snould intension President of the Connecticut Gen¬ Life Insurance Company. In eral own example, with the Dollar valued at it ernment 33 King Inc., 1151 FRANCISCO, Calif.—Jo¬ C. Eldridge and John T. Schneider are now connected with SAN to The Financial Chronicle) FRANCISCO, Calif. Franklin W. Schindler is nected with Dean now Witter H. L. Jamieson Co., Inc., Russ Building. Mr. Eldridge was pre¬ viously with Stewart, Eubanks, Meyerson & York. 45 of Montgomery the New Street, York and cisco Stock Exchanges. & — con¬ Co., members San Fran¬ 84 The Commercial and Financial Chronicle (3018) The following statistical Indications of Current latest week Business Activity week IRON Indicated steel INSTITUTE: STEEL AND month ended July 3 §95.1 (net tons) July Ago BUILDING 65.8 95.8 *95.0 §2,320,000 3 Total 1,568,000 2,312,000 *2,292,000 oil and CONSTRUCTION—U. condensate of Month — S. May construction DEPT. (in output—dally (bbls. average Month' OF millions): $3,537 —— —:— Residential of 6,494,650 6,893,000 25,535,000 25,985,000 24,552,000 23,587,000 June 17 2,197,000 1,579,100 2,165,000 2,186,000 Industrial (bbls.). June 17 Residual fuel oil output (bbls.) lune 17 Stocks at refineries, bulk terminals, In transit, in pipe lines— Finished and unfinished gasoline (bbls.) at une 17 Kerosene (bbls.) at June 17 11,205,000 11,755,000 10,557,000 9,292,000 l,3o4 7,956,000 8,804.000 8,070,000 output June 17 (bbls.) Distillate fuel Residual ___. . ... —... Additions . Non-housekeeping 165,285,000 166,233,000 170,677,000 168,983,000 28,435,000 27,032,000 24,144,000 25,942,000 70,109,000 79,402,000 Social RAILROADS: 785,425 786,707 774,419 707,237 June 18 657,505 655,242 669,287 591,808 $412,067,000 $327,950,000 $402,699,000 $312,926,000 June 23 225,458,000 192,942,000 289,598,000 160,090,000 June 23 186.609,000 135,008,000 113,101,000 152,836,000 —June 23 147,855,000 98,511,000 83,802,000 123,238,000 June 23 38,754,000 36,497,000 29,299,000 29,598,000 (U. S. ;. BUREAU OF STORE SALES SYSTEM—1947-49 June 18 All ELECTRIC output 9,345,000 538,000 502,000 June 18 - INSTITUTE: (in 000 117 26 30 114 145 360 365 INDUSTRIAL) — DUN 9,250,000 489,000 7,956.000 115 '.$•? Hospital Other ■' 114 **10,226,000 9,987,000 9,976,000 8,981,000 June 23 205 214 204 June 21 4.797c 4.797c 4.797c 4.634c June 21 $56.59 $56.59 $56.59 $56.59 June 21 $85.33 $34.00 $34.00 $27.58 i: 215 Finished steel (per gross ton) (per gross ton) of M. & J. QUOTATIONS): Middle 35.700c 35.700c 35.700c 29.700c West June 22 36.400c 36.800c 36.125c 29.500c Lead (St. at June 22 91.750c 15.000C 15.000c 15.000c 14.800c H.oUOc 12.000c 19 57 51 65 14 14 14 $33,495,976 VALUATION INC DUN — $35,119,569 $18,196, 320 342 j & CITIES—Month 215 7i,a721 ,574 113,328,935 Central 44,085,131 41,269, ,931 116,977,846 — 81,747,900 57,641,519 — 102,254,681 112,113, ,620 85,854,855 64,2:33 ,097 29,662 ,286 23,288,665 16,ol7 ,379 93,203,256 81,350 ,212 $563,821,717 $521,173,029 $435,015,419 65,782,634 49,939,864 35,373,510 $498,039,083 . 46,303,002 22,696,406 Central 95,164,o23 44,169,443 89 656,737 iu.wuuC 12.000C 81 16 • $471,233,165 $393,641,909 14.000c 12.500c 89 ' public—— » 78 87 255 19 public service enterprises— and development——.:—_— 94.125c June 22 _ at 93.625c June 22 at Louis) 94.500c June 22 at Louis) (East St. South York) (New York) Lead Zinc (New 51 97 Mountain tin 34 61 90 Atlantic June 22 Straits 177 31 360 Atlantic Export at_ 200 32 England copper— Domestic refinery at refinery 132 64 —... East Central Electrolytic 31 394 86 ' April: New South (E. 22 378 206 — water BRADSTREET, (per lb.) 1,024 8S —— PERMIT BUILDING 9 912 22 —___—-— —_—_____ institutional.. building facilities other 14 1,017 , ____: Conservation All & 277 388 building building 58 277 16 - 55 297 and and 30 28 60 telegraph utilities non-residential Military Highways ..:r.v; 41 29 Educational 115 564,000 131 —~ 386 Non-residential IRON AGE COMPOSITE PRICES: Pig iron 28 — private Miscellaneous June 25 AND BRADSTREET, INC..... METAL PRICES 28 • 30 — and Residential V kwh.) (COMMERCIAL Scrap steel 17 28 institutional construction Sewer Electric 17 . public other Public RESERVE 100 = 9,600,000 June 18 INDEX—FEDERAL AVERAGE Other MINES): coal and lignite (tons) Pennsylvania anthracite (tons) FAILURES 40 and Industrial Bituminous EDISON 42 37 20 —_ Railroad June 23 State and municipal Federal DEPARTMENT 54 —. and Telephone Public construction OUTPUT 59 i—• Public. utilities NEWS-RECORD: COAL 98 158 construction Farm ENGINEERING 12 165 Miscellaneous June 18 construction 170 y 84 174 building Educational 49,772,000 Hospital • 13 J ____ 43/386,000 construction. 211 recreational——_ Religious 88,414,000 of cars) 162 147 non-residential Other 45,194,000 — 184 " 91,269,000 CONSTRUCTION 26 430 88 \$t buildings garages. 45,684,000 cars) 111 563 184 _. and June 17 freight received from connections (no. Private — and June 17 or 970 ■ 593 inon-iarm) office at ENGINEERING S. . Stores, restaurants Warehouses, at Re/enue U. i (bbls.) (number 23 " 235 building (bbls.) freight loaded Total —y____„ ' Non-residential oil Revenue 27 1,107 105 alterations. and oil fuel ASSOCIATION OF AMERICAN CIVIL 6.625,600 (17,520,000 6,600,250 ;une 17 (bbls,) Kerosene output (bbls.) Distillate fuel oil output 2,116 1,298 1,170 117 Commercial 8,109,000 Gasoline 2,345 • 7,522,000 6,676,350 7,329,000 average $3,140 $3,261 1,220 building (non-farm)——j.— dwelling units_____—_______—— New June 17 stills—dally of that dates Previous ' 42 gallons each). Crude runs to are as 2,490 construction.—. new Private INSTITUTE: . Crude of quotations, cases either for the are Latest Equivalent to— PETROLEUM in or, Year LABOR Steel Ingots and castings AMERICAN Dates shown in first column ' 1959 production and other figures for the cover that date, on Thursday, June 30, - Month Month Previous * operations (percent of capacity)™— month available. Ag> Latest AMERICAN or or tabulations -. Total, United 11.000c New York States _, City MOODY'S BOND PRICES DAILY AVERAGES: U. S. Government Bonds Outside June 28 95.88 96.28 96.65 June 28 108.88 108.88 108.70 110.34 June 28 112.19 112.19 112.19 115.04 June 28 110.52 110.52 110.15 112.15 June 28 108.88 109.06* 108.88 June 28 103.97 103.97 104.14 City 99.89 Average corporate Aaa York New Aa _— . — ..... .... — A Baa _________— Railroad Public Group ....— 1 June 28 Group Group 103.24 109.79 June 28 June 28 June 28 1 107.44 June 28 June 28 Utilities Industrials MOODY'S BOND YIELD DAILY AVERAGES: U. S. Government Bonds — I Aa — ; In consuming 104.31 In public Public HU.52 109.97 111.44 2.81 2.77 2.75 3.23 3.24 3.15 Spinning spindles in place on May 29—_:— Spinning spindles active on May 29__—— 3.05 3.05 3.05 2.90 Active .108.88 MOODY'S COMMODITY NATIONAL v: 2.51 3.14 3.16 3.05 3.22 3.23 3.17 3.51 3.51 3.50 3.49 of 1949 3.0S 406.4 411.2 398.1 429.8 239,200 263,819 236,922 215,919 285,547 282,825 279,415 248,260 June 18 at end of period— 99 100 97 91 June 18 ; 548,315 598,936 578,264 EXCHANGE June 24 SECURITIES — sales by dealers EXCHANGE (customers' 106.73 106.75 106.74 short Round-lot 106.89 1.193,335 $61,643,937 907,341 1,005,245 sales june Other 5,142 825,320 723.761 $44,OUU,uj8 227,350 7,046 239,870 june sales 3,758 704,887 $50, Total ACCOUNT 204,010 227,350 239,870 275",430 294,000 320,140 447,300 232,170 dealers— round-lot MEMBERS 1 FOR / which OF All FACTORY 11.845,600 7,327,740 Hourly 10,770,380 12,354,060 7,624,400 All 271,420 36.300 302,890 SERIES — U. 333,190 285,040 263,730 252,600 June 523,247 453,685 505,656 Junp 73,030 103,100 34,880 569,577 514.055 547,076 commodities as of Jan 1, TNumber of 587,085 650,196 *65.91 $71.13 83.97 66.98 2,001,245 76.21 ' 63.91 S. DEPT 2,284,956 351,840 410,820 2.177.736 2,135,735 2,588,556 38.5 $1.87 — i, goods $1.85 *. $1.81 1.97 1.91 1.69 1.66 $2,752,305 $1,840,702 1.99 .—— — ——— ___.—— fiims carrying extended of net margin 1.70 ' 7-. accounts— debit balances $2,731,191 customers to customers' 46,745 free of listed value of listed credit — balances shares._i — bonds-.— — INCOME (Interstate Month 1,455,3)5 of railway ITEMS OF Commerce U. S. CLASS 45,071 313.426 927,963 973,129 836.470 182,829,773 S 48,414 181,385,690 137,923,085 104,4 58,956 104,344,023 105,093.898 100,127 91,814 104332 2,205,753 2,131,122 1,125,649 $97,733,241 banks in U. 336,842 $66,604,292 $59,166,876 17,410,309 19.182,814 116,052,181 in and 326,997 18,318,940 hand value RYS. 1,210.525 2,068,997 39.3 39.9 84.014,571 88.349.690 I Commission)— March: operating income 244,790 1,783,895 40.2 41.1 *39.0 omitted): SELECTED 1,315,940 251,990 1,817,007 7 41.7 3ii.4 — Member borrowings on U. S. Govt, issues— Member borrowings on other collateral Net 7i;np ar> — Market 299,605 1,974,377 june Other income Total income Miscellaneous deductions from income- 4,001,488 3,820,778 3,774,370 112,050.693 80,193,793 84.575,320 80,964,138 45,206,351 52,873.434 3,097,965 3,072,977 2,632,925 77,866,173 43,133,374 50.180,509 44,034,131 44,007,875 43 416,430 40,661,482 21,868,315 29.856,290 20,148,610 OF 110.3 II June 21 IIIIIIIII June 21 110.2 110.3 109.9 91.6 91.9 91.8 available after for fixed 103.6 103.6 103.1 104.5 90.1 than ((Includes farm and foodsIHHIIIHH June' 21 827,000 barrels of foreign crude runs against Jan. 1, 1954 basis of 124,330,410 tons. orders not reported since introduction of fixed charges charges 34 276,374 19.425.011 4,085.268 13,585,252 5,294,224 3.60 2.5J 2.67 94.4 90.2 84.2 115.5 115.6 Other J 91.1 115.7 114.4 deductions Net income Depreciation Federal Dividend §Based on new annual as $74.77 82.98 _ goods . figure. 1955, 6,636.000 OF — goods customers' Income other DEPT. S. 100): products Processed foods ♦Revised 9,095,000 May: Market 264,725 620,087 Farm All oi goods on Total 257,930 50,510 Cash Income commodities: 15,731.000 *9,421 000 ♦6,839,000 Earnings— Credit Commodity Group— All *16,260,000 6,828,000 AND HOURS—WEEKLY ESTIMATE—U. manufacturing Total 260,549 234,740 _______IIHIIIIIIIIIII jZI NEW —— goods Member 24,500 214,670 294,850 ! = 134.5 $76.11 :i EARNINGS (000's 870,670 - -I__III~IlJSne (1947-49 101.8 *146.5 NEW YORK STOCK EXCHANGE—As of May 31 685,260 1,599,170 277,150 _________________________ PRICES, *104.7 149.7 . 9,495,000 Non-durable 185,410 1,327,750 1,313,910 20,070 ; saies — 258,740 1,055,170 17,700 _ LABOR 183,780 970,280 214,140 sales WHOLESALE 805,410 june Total sales Total 1.515,570 298,100 Total round-lot transactions for account of members— Total purchases Short sales Other 1,303,420 1,154,060 floor- sales 7,163,000 5,231,000 16.321,000 —— manufacturing 10,318,740 III June sales Other 12,394.000 *7,467,000 *5,361,000 105.7 —_—___: ... LABOR—Month 296,660 junp . Total sales Short sales ♦12,828,000 7,537,000 Avge.—100)— Weekly Earnings— All manufacturing Durable goods 508,460 1,153,030 floor— initiated off the 12,879,000 5,342,000 — goods AVERAGE 451,640 Junp transactions Total purchases ♦114 (1947-49 Average=i00)— Non-durable —IIIIIIIII June Short sales Other goods Durable T1)np Other *117 111 of manufacturing Durable 9,794,750 10,128,710 —IIJune sales Total sales the *98 117 110 of employees in manufac¬ industries— Durable junp on .*93 number turing MEM¬ Short sales Other *94 97 101 DEPT. S. SERIES—Month (1947-49 manufacturing registered— Total purchases Other transactions initiated Total purchases 97 =_____'___■j—.——-- goods manufacturing All 333,960 june ACCOUNT in PAYROLLS—U. 99 99 101 unadjusted-., adjusted——— AND Payroll Indexes BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS: in stocks l»47-4i> — seasonally adjusted— LABOR—REVISED All TRANSACTIONS 418.3 Hours— june Transactions of specialists 8,36 i.OOO' 450.1 FED¬ manufacturing (production workers)., Durable goods ——-—_—— sales— Total sales seasonally Non-durable sales ROUND-LOT 8,854,000 FEDERAL Y, N. . 446.8 All (SHARES): Short sales Other OF 204,010 June OF 19,325,0001"' unadjusted Nondurable 245,430 TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK EXCHANGE AND ROUND-LOT SlOjCK TRANSACTIONS FOR 22.762,000 19,160,000 8,937,000 113 daily), (average EMPLOYMENT $30, june by Number of shares 22,280,000 18,302,000 monthly), unadjusted (average daily), Stocks, Stocks, 708,645 jUne purchases Sales $34,123,978- 998,199 902,199 $40,931,008 by dealers— Short sales Round-lot 4,268 june Number of shares—Total sales 22,284,000 DISTRICT, OF 103,256 OF COMMERCE): SALES—SECOND BANK (average Estimated june sales Sales All 949,591 $49,452,043 829,588 other sales 19,318,000 Avcrage==lOO—Month ot May: '•"•J1 834,871 $44,941,752 Odd-lot purchases by dealers (customers' sales)— Number of orders—Customers' total sales Customers' 1,589,668 19,360,000 (000's omitted) May 29 per spindle in place May Employment Indexes june Dollar value 334,964 <1,769,643 18,302,000 —— june Customers' RESERVE Nondurable purchases)—f value 142,419 1,720,619 29— May oi as (DEPT. STORE 1,586,693 8,997,176 _____ May— oi —e RESERVE 645,472 1,812,825 11,189,373 May: COMMISSION: Number of shares Dollar ERAL 376,344 STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK Odd-lot DEPARTMENT PRICE INDEX— AVERAGE ==100 month 29 spindle hours Active spindle hours 3.14 3.17 June 18 (tons) May spindles active . 3.23 3.21 3.18 June 18 . OIL, PAINT AND DRUG REPORTER Stocks Cotton Sales activity Unfilled orders 3.33 3.21 ASSOCIATION: (tons) Percentage 3.30 3.21 3.18 June 28 (tons) Production 3.31 June 28 : INDEX PAPERBOARD Orders received Linters—Consumer 696,354 1,713,624 10,432,247 May 29 29—_. 3.23 June 28 Group.. Group of as May 107.09 2 June 28 Utilities of as 703,240 —— establishments storage 1U9.24 3.23 Group COM¬ OF 109.79 3.14 Baa DEPT. — BALES: May 1C9.24 W. .June 28 _____— Industrials of 107.62 - .June 28 . Railroad month 109.97 > June 28 A LINTERS AND MERCE—RUNNING Consumed COTTON SPINNING Average corporate Aaa COTTON '__ Monthly Investment Plan. **New capacity of all-time 125,828,310 high record. Gn tons >. — (way & structure & equipment) income taxes— — appropriations: common stock On preferred stcck ___:—1. Ratio ob income to fixed chaigss: .— V .. , Volume 181 Number 5442 . . . The Com&iercial and Financial Chronicle (3t019) * . : . : * ■ Continued jrom page 5 ' ■ > . ; parable 1954 week ,5,329 1,440 trucks. • - and ears been running much smaller than usual for this time. The condition of the Failures Hold to Modest (Downtrend May, Dun & Brad- street, Inc., reports, total for the (including ing to Commercial and industrial fail- climb during stead bringing the month for 217 of two, thi^ trade weekly reports. cities The New York) to the figure of $563,821,717. declined slightly in the week ures This Institute year 8.2% last ago, showed rise a greater month's of 29.6%. than April's 320,000 was for $521,- a The valuation of plans filed in New York City alone during May increased 86.0% to $65,782,634, from $35,373,510 in Most and Steel preceding week, according to op- Failures steel compared as $5,000 with for the 192 . , , weeks 1955 in like week the rate tion 2,312,000 tons. A 95.8% was weekly month a and is Gf 23. 2% previous week, All Industry and trade producthe because while retailing dipped to 100 from capacity 1,568,000 tons at annual capacity in or lower was 1955./ The capacity of Jan. as of 103, per¬ 20. 124,330,410 The brighter, tives and say of the many They think of era Thirty we expansion upward trend an of growth. will cent per raise 13.9% full weeks, 1.3% will products be introduced 43%, of the companies. result will be 5.1% a by The rise net in reach«d kwh , , 1 week , ^ output s J advanced 1.245,000,000 kwh., and 1,780,000,000 kwh. . Car or 1954 over the • : . Loadings Edged house some of orders. On products, steel producers booked and full full the for entering are fourth ingot 95.8% of orders for 1,282 cars or 0.2% below preceding week, according to has outnut averaged the second capacity in quarter, some producers have been unable to keep up with the influx of orders. ies are a In some cases, deliver¬ month behind schedule. they so Lending ond-half revision buoyancy outlook in the construction, statbs. this is to this sec¬ upward of trade new journal The government calculates year's total will $41,800,000,000, earlier record the the estimate up estimate lS54's Railroads be a 5.8% and record over 11% its above Loadings 11.1% for above the the week ended cars, corresponding week in 1953. at last are life in their buying. showing For the sec¬ 12% Higher Than Week and Year a The automotive week. The total of to week's mand for sheared steel tighter than it is. not produc- and cars picked shut make plates Because in de¬ even busi¬ up, some foundries down for summer vacatmns and others will suspend operations lor only one week in- r land States. had Four other failures fewer than regions in 1954, with marked declines in the South Winter last week Food Price Index Declines Mildly After Sharp Rise of Previous Week of The June 21 index fell to $6.49, from the previ- figure of $6.51. It compared with $7.28 on the corresponding with $" date a year ago, or a drop of ous with new crop buyers still awaiting offerings. Spot coffee active in very and Trading both shipment markets became the spot roasters as apprehensive about their low inventory position. All spot offerings were being snapped up at premium prices. Cocoa prices finished higher for the week but developed some easi¬ ness at the close. Warehouse of cocoa bags, were earlier. reported slightly up Raw at from a prices sugar heav^ buying by refiners. Lard displayed throughout a moderate export steady the undertone week, aided demand by and strength in vegetable oils. Live hog prices continued to advance under active buying which lifted prices for choice weights to $22.65 per hundredweight, the top highest since last August. Mill demand showed some flecting for a more cotton spot cotton re¬ active demand for and prices quoted higher in the 185,490 units, or and 38% reported for ago, year above lard, oats, and tea, cocoa, sugar, lambs. its and use of heavy parts of the belt had some effect unwanted the on Reported sales in the 14 markets totalled 48,100 bales, as compared and 60,600 bales week a earlier, 51,800 two weeks ago. Con¬ of cotton during the the 133,926 units same week that car of the previous week by 14,461 cars, while truck output by 5,627 vehicles during the rose week. trucks 113 886 were Last week were and cars 2(1,040 assembled. the agency reported This compared Withi5^94 in the previ0us week and 20,040 a year at 9,640 last week cars and was 2,142 32,274 Dun & chief function is Fathers' By daily week. Day-to-day small were closed 273.35 at contrasted the and June on with fluctua¬ 273.45 index 21. This week a previous, and with 271.71 on corresponding date last year, Grain prices moved downward of last the week, gains the irregularly wiping out in the scored previous week, ; Wheat Day Buying Wednesday of last week rose moderately higher than in both the previous week and the cor¬ responding week As Summer tailers again promotional a considerable firmness in early dealings, aided by the high prices currently being for new Southwest. . the week-end factor and sing operations to of wheat Crop Additional over 2,420 trucks, and for the com-' ceipts While a new in the rainfall a depres- hindered harvest was great extent. crop wheat Rehave sales of launched and new much were buying slowed somewhat from car that of the week Widespread tinued previous* confidence heavy retail sales flected in wholesale in con¬ was re¬ buying a activity slackened Although food in markets, sale trade most other whole¬ considerably above was that of the prior week and notice¬ ably higher responding than in period the cor¬ 1954. of Preliminary reports indicated the buying of women's Fall that apparel at most time market than greater was this of ever centers before at Retailers, ex¬ pecting yearly sales gains rang¬ ing from 3 to 7% during the rest of 1955, placed heavy orders for coats year. suits. and ■ , Department store country-wide basis sales on in an Day retail for the week ended June 18, 1955, advanced 2% from the like period of last In \the preceding week, June 11, 1955, a rise of 3% was registered from that of the similar period of 1954, while for the year. weeks ended June 18, increase of 5% was re¬ corded. For the period Jan. 1, 1955 four an to June 18, 1955, a gain of 6% was registered above that of 1954. Retail the trade past York more period rains casional City active the week serious effect any week's good showing. According the to Board's Federal Re¬ department store sales in New York City for the weekly period ended June 18, serve index, 1955, declined 1% below that of like period of last year. In the the preceding week, June 11, 1955, the figure was revised to show no change from that of the previous For the four weeks ended week. 18, 1955, of the a increase of 1% an For occurred. the 18, rise period Jan. of 1% corresponding 1954. from that period ' ef¬ DIVIDENDS of re¬ GALORE tail trade in the week ranged from 2 to 6% above a year ago, accord¬ ing to estimates by Dun & Brad¬ street, Inc. varied from Regional the estimates levels by the following percentages: New England and Northwest 0 to +4; South -j-1 to East -f-2 to 4~8j Midwest and Pacific Coast +3 to + 7 and Southwest 4-4 to 4-8. Apparel sales than the week Presents bolstered the year-ago were a year Father's Day volume of cent wear was above All weeks. sold well the Monday Issue level of the "Chronicle" for of dividends declared and re¬ types of sports¬ with children's clothing frequently requested. Luggage sales continued to rise. Housewives the helpful haber¬ dashers and the demand for men's suits than more much higher before and for Nothing were offered ample supplies of fresh fruits and vege- when 1, 1955, the index activity. volume in 1954. Oc¬ of during have to the on was sales volume higher than similar the New in week re¬ buying a taken from as the Federal Reserve Board's index aggressive campaigns dollar both automobiles above last year at this time, total year ago. officially began, fort to improve usually dull Sum¬ total equipment popular. were recorded Retail trade in the period ended ago. displayed barbecue 1955, to June and Promotions The Bradstreet wholesale commodity price index showed little change during the past Moderately on Latest Week The plants and Lifted boost In the previous week Docars Volume year electric fans and For the Week and Year Aided Father's trucks. 10,618 Trade helped minion built the April period, and bales in May a year ago. sales. ago. Canadian output placed in also most 31,321 trucks made in Bureau Continues Steady In the In the corresponding week year May period, according of the Census, to¬ 703,200 bales. This was equal to a daily average of 35,162 bales, compared with 35,402 bales the Wholesale Commodity Price Index tions output advanced four-week to a Bedding, outdoor fur¬ and failed market. mer an states "Ward's." Last week's above the niture with Reports hams, coffee', eggs and hogs. price were flour, wheat, The index represents the sum total of the price per pound of 31 raw foodstuffs and meats in gen- - improving. ad¬ moderately ' during week. Lower in trucks conditioners June Commodities eral air 1955, improvement, textiles, vanced higher than furnishings sales in¬ slightly, with* interest in creased fairly well maintained aided were bringing the purchases food was rou¬ pfices continued to rise. was of week ago. 10.9%. rye, Home dwin¬ \ demand, volume ago. bakery flours result Trading in other flours with The wholesale food price index, the as reductions at mid-week. rains in Atlantic States. wheat dling inventories and sizable price little increase of 12% above the preced-- the United States. will Ago industry for the past cars upturn last year's level in four Reports," assembled an estimated to show the general trend of food 154,169 cars, compared with 139,- .prices at the wholesale level. 708 in the (revised) previous car An no regions, notably in the New Eng- steers latest week, ended June 24, 1955, according to "Ward's Automotive freight has Preceding 38% Above Like Period freight rose. South exceeded corn, there orders will was wholesale cost last week included . U. S. Automotive Output R?oorted ond consecutive month, orders for ness corresponding but a decrease of or 3.3% below the week, 27,153 last $37,600,000,000. up to 60 from 52. change in the East 8 Central region. Mortality There 011 talled ing week's output of 165,402 units shipments. the toll edged remained side, there was improvement in bookings of hard of the week before. amounted delivery including the Pacific States where buying conservative the Association of American Rail¬ orders for August that month to catch up on the some roads. tion use , day. This was from the previous per sumption Some producers have turned down can ? *ln, SSouth TVtlanihe, off from 16, and in the M untain Chicago Board heavy dollar considerably used compiled by Dun & Bradstreet, Inc., turned mildly downward the past week following the sharp rise the the na¬ the+Ea0s] tates, down to 24 states, 1 from 3. Moderate lncreases Prevailed in four regions, freight for 18, 1955j de¬ creased . „!?e. to rise. Dairy products, beverages and frozen foods were than last week averaged 34,- Although stocks ^ild ■dI,ps +pr1evQafllf<i ? revenue the week ended June quarter Even though quarter. tional third are three excellent acreage the tinued volume. by 11.1% Above Year Ago Loadings of 1954 a the the on slightly week Middle clares this trade magazine. and while year ago. Wholesale June 18, 1955, totaled 785,425 cars, an increase of 78,188 cars, or industry winds up the first hall on a high note with in¬ got production at 97% of capacity level equalled Slightly metalworking industry's secondhalf prrfits over those of the cor¬ responding period of last year, de¬ The steel rose peen week and well below the year-ago Atlantic, East South Central and i . Lower Last Week But Were prices they will people. New Construction 1954 rec- ended reached the like week in 1953. and more high week outDut in More companies expect to work the above the comparable week summer. The majority of the increases will be between 2.5 and employ in when It increased this 7.5%. 1955 5 239,000,000 kwh. above that of the previous week, when the actual output stood at 9,987,000,000 kwh. the survey believe their manufac¬ turing costs will rise then. Thirtyseven 10,226,000,000 The previous mu• 1955. replying total. t occurred This bring an manufacturing those at all-time high record,. to the Edison Electric new 10 047000 000 respondents ing prices in the last half of Two-thirds down ^^turn reporting 69 failures as against 83 in the previous week . June a Feb will to industry for the week Saturday, 25, 1955, estimated ord distribution costs and sell¬ costs, by Institute. execu¬ year. business Trade ^,e Middle Atlantic States accounted principally for the week s according will start expansion programs next Strong a electric energy the electric light was survey. and per cent of the wholesalers of other lines had mild declines from Latest of kwh., even entering are In power ended $120,000,000,- participating in the amount dstributed up 9.1% over 1954 and only 4% beiow record 1953. are Record 25 prospects 000,000 bushels 238,744 OCO, 1956 Failures its Week along with a fast first half, will put the metalworking industry s for High from 24 to 21 from 14 and topped the year- 1, 1954. Electric Output Scores A New AilTime to and commercial service to 18 from based are construction ago in of nas in grocery stores through¬ country. Beef was gen¬ erally cheaper than in the preced¬ ing week, but prices of eggs con¬ in period. Sales of grain and soy¬ bean futures tine groups ures during the week. Manufacturing failures fell to 42 from 52, production centage figures for 1954 covering 7,600 metalworking plants, shews. That increased pace, Prospects $100,in the 65.8%. on vey, ' 18 than the next six months, "Steel's" Midyear Eusiness Conditions sur¬ sales for the year at with compared as of except wholesaling had fewer fail- tons rise excess 000 Metalworking companies expect to Fourteen businesses failed able week. volume with was placed strong in the last half if that period shapes up like the metalworking industry thinks it will, says "Steel," the metalworking weekly, the current sales failures The operating rate is not compar¬ other metals will continue their small wjth liabilities in ago year ago No change took ago. year among with the crop slightly larger a last year. compared with liabilities under $5,000. They held a|- 39 but exceeded their 1954 toll 1, 1955. For the or a place , ingot production s involving liabilities of more dipped to 166 from 175 last week and " • . , on of corn ilil.O.lCli tapered close tne planted £,1 cUnd b"ving the of - ingots" and ago. actual and - the companies ??feooo°o^ A^a annua] Jan. capacity_ of 125,828,310 tons as of Scheduled at 96.1% steel week rate of Capacity This Week for that UtlJlCl' pc toward steel of castings . May last year, compared with $49,939,864 in April, a gain of 31.7%. ,/ Demand tons The industry and \ of larger yield than last year. ]nwpr ended June 23 to 205 from 214 in the 95.0% (revised) and 2,292,000 tons 173,029. Steel Output rate - total It CtHU Iron announced erating exceeded was a V_.vyiAl \ American Hun & Bradstreet, Inc. Although failures were slightly below the only in May having 96.1% of the steelmaking 215 a year ago, they remained and June of 1950, both of which capacity of the entire industry will above the 195 in the similar week months, had permit totals of be at an average of 96.1% of of 1953. Continuing below the slightly ever $570,000,000. Com¬ capacity for the week beginning pre-war level, failures were down pared with the $435,015,419 in May June 27, 1955, equivalent to 2,- 34% from the 310 in 1939. a, near-record Spring wheat crop was said to be good with indications point¬ tables out payable coverage of 36 The Commercial and Financial Chronicle 1 (3020) Business Eusiness Offered in National Association of a leveling in the upward trend of recent months. Survey Committee of the Exchange Purchasing Agents indicates that there is A composite of opinion time pur- in order to meet For high ing National of Association Purchas- . mittee, whose Chairman Chester Ogden, re- ... !0il'Industries, tive stock chases, The Company, s figure. re¬ , port that busi¬ in 96% 2nd require advance these for items \ ^continues to are, of SI • u of buying for Chester F. Ogden new We have to go back to the fiummer of 1954 to find lower figOn the other than substantiates ness report last the worse a month. fact This that bus!- Purchasing Executives view the in unemployment unemployment labor recent v/ith both relief and in- negotiations They relieved in that they believe rre "these concern. settlements "the danger lessen greatly of immediate an marked production decline due to the shutdown of any major segof ment industry. This their opinion of last our Strengthens month, that business will remain J. high level during the balance They express concern in that they believe the settlements <n a c£ 1955. wiil result They are sure increase Low in further that mands. these on with i?ct -of the plan higher is which group is and 200,000 stock shares of Jerrold The debentures of their on stock mon share, suaic. is priced Jerrold ^0-90 their operating are ef- in the buying in the „ days' range. per and vilh3optimism.'^ is sti" viewed Prices: Although, state that higher; 59%, the 15 On prices and same, be keen instances of prices and communities receive The used systems principallv otherwise in unable satisfactory television to re- ception, apartment houses, housing projects hotels, dealers' show- etc.' rooms, The manufactures connection tenna with systems also company products used in community y such as an- amplifiers, signal distribution equipment, conxial cable fittings, automatic gain control equipment, power sup- etc. Proceeds of the with special offering of common the offering proceeds of 50,000 ta¬ of a shares stock to company cm- ployees, will be added funds of the to the gen- The company substantial a nortion of the proceeds will from time to time be invested in com- of the proceeds will be develop the company's line to and expand A used to Inventories• "book" devPionmpnt lncrease to sales of increase. This in con- product personnel for duction result schedules of Private Placement Salomon Bros. & Hutzler have arranged the private placement of Corn 10 rials that situation, such nickel. stcck This is lidence riod as a of that, in the immediate a production will pe- con- fairly high rate. , A. G. ent underwriting 100,000 Ltd. . is common $20 shares a as many members report adding to their employment as report decreases. The rolls skilled labor market remains tight and new finding some college jobs graduates plentiful. There indication of increased are is over- of Co., Inc., are Purity stock, $1 share, bank's DanK s Purity fornia of 000,000. at 1803, Mr. joins that par . .u ... TT bankers c. . the institution He serve capacity. started Ltd. was Securities stores current in annual approximately 1953 Corp., ican Houses, Inc., at a Of $2.50 per share. The net proceeds of the offering ing capital and sales promotion. to American organized engage in duced in Houses, Texas the in prefabri- number of different types a of prefabricated units for defense purposes. The corporation is now tures and, in some instances, of erecting and selling the complete prefabricated home. The corpora- to $15,500. elected been the to Company Trust Mr. Norberg Exide corporation and its fiscal the 30, 1954, year $2 217,- were compared with sales of $761,for the previous1 fiscal year. the five months ended Aprii 30, 1955, sales totaled $1,025,117. is of of board Philadelphia. director of The a Batteries of Canada and a director of the Chamber of Commerce of Philadelphia. * * Fulton J. Co Muller, Philadelphia, suddenlv Muller at ^as a the * Vice-Presi- of Janney & passed aee of away 47 Walker, President National june 23 of of Pennsylvania Eusiness. Cali- charge of publicity sales JIonal Security Traders Associa- $90,- the11"veSment^Tader^^AssociaPhiladelphia. He Wharton was for. the in Na- First The Bank of pirgt The and National junior the company, of in meetings the directors of that two subject to the approval of the stockholders and of appropri- merger, ate authorities. meet Stockholders will Sept. 19 to vote p0sal to share basis, merge become on with on be tered and ; new bank will have, m adto its central city offices, •, two offices in the old city at Third and Chestnut Street and Sixth and •' Chestnut Street, large office at 32nd and Market Streets to serve a the new development around the Pennsylvania Railroad terminal, and 21 neighborhood' branches in virtually every section of Greater Phiiadelphia. * As nart of * * thp nroDOSed mer«er ofTh^lLrtonNathmalB^of Morton Pa nounced, nrevionslv for-one Pa., split shares of the of changing the to $10 outstanding capital stock by value from $20 par of two- ? a the share, per approval the Comnanv in Company in at their meet- June 17, authorized on an- of TmV Trust Philadelphia, ing directors the strort Street Rro,,d Broad the subject to the shareholders at ' their meeting scheduled for Aug. plans of the Broad street Trust Company and the 24. The merger Morton National Bank in June our 16 were noted page 2776. issue, Girard Battles National Girard, Pa., has increased man q£ $25,000 of new became tf The National First stock of Bank of capital common $100,000 was absorbed by the Gallatin Na¬ May on effective * Dawson, Pa., with 13 Effective of the June Towson Towson, Md., the 3, National capital Bank of increased from was $200,000 to $250,000 dividend of $50,000. While dation Bank of another by stock a Trust Fed- The Chair- now Company. William Fulton Kurtz Executive The The of the will Pennsyl¬ Executive new bank Walker. B. Wm. serve ., , as . making from the "Bulletin," June Office the of Currency, Bank of will a give more 1954, the a than history of of banking service. of Dec. 31, To of quote Weekly Treas¬ issued Ohio, with the by Comptroller of the "the Lincoln common was morged National Cincinnati, stock of $1,- with and into the Fifth Third Union Trust Com¬ pany, Cincinnati, Ohio, under the charter bank, and title effective at of the the latter close of business May 13, 1955." * The if First capital from bmion doilars and 13 we ' mention * - National Bank of increased its . Philadelphia for the first time of ' Cincinnati, the resources hence herewith. Burton, bank with in Fifth the as Bank further merger di- a , bank with appeared <uven Nationaf utlve Committee. It is stated that combined National Ohio, bank inadvertentlv Third rector and chairman of the Exec_ Cincinnati, local consoli¬ the on Lincoln ury be T "illiam of the these columns June 16, page 2776, the rame of that institution was the new item an of The President will be fC00,000, years by a stock divi¬ and the sale of stock. The en¬ First of the System. Board be about of capital May 19.. after The Ban^ng^and William F. Kelly, will dend $25,000 larged are will be State char- Reserve I1* Day. — to The as member a pro- merger shortly known, It eral the share-for- a the effective bank will a - of there . The dition on the institutions agreed upon terms of . - The officers so ; the Both . officers com„lement Pennsylvania of . Philadelphia, that announce Mr graduate of the Uni- of 0f 'SS&nf . the Board, and William L. Day, President, of The Pennsylvania Company for Banking and Trusts, of Philadelphia, and William B. Vice-President School tion » value- tional Bank of Uniontown, Pa. Chairman of Kurtz, Vice-President George J. Muller Ltd., , vania George its book J* The ' Company. for of growth its to brought will be used principally for work- 1947 the years relation in its capital from $150,000 to $200,000 the addition having been New 10 cents) of Southwest Aner- was many V he directors of Tradesmens Bank and , « £ has * price Tnc. in bankers Today eiected Vice-President. in Electric Storage Battery Co., ElecYork City, is offering publicly trie Storage Battery International 120,000 shares of common stock Corp., President of director of Southwest 0f earnings Bank of Houses Stock Offered (Da'r by Norberg, President of The Electric Storage Battery Company Southwest American Aetna Comptroller and C. F. a operates at c versity food who through way and united btates. value; dent and Secretary ,, Phila- of group a since The Philadelphia National in 1924. tially all of its undeveloped leases an AI1 o£ the '00,000 . Stores, with running since A*m organization in Cooper keIinf operations; its trade mark and tr?,de, Pames; and sobstan- For beinS sold bY certain 101 Cashier uasnier 14th refined products, property and After working up through all the PraPerty rights, accounts and 0peraitons departments he was notes receivables, and materials, appointed as Assistant Cashier in suP°Iies and eouioment incident Tw0 years iater he was Ats refinin5.» PJPelme and mar- made Assistant Vice-President 881 Stores and be the bank's senior Kerr-McGee its holdings, delphia National lnduding among other things, all have worked their m rj0(j Mr. viCe-President as will the tne Ug A" that transaction, Deen KocR 593 Chi- a had Philadeiphia. ®o1? ended Nov. stockholders. chain 1942 o££icer in charge o£ °Perations- Kerr-McG e. group which offered shares , than five times & Ih- on June 28 headed ca&°> Trpn?ten thhf month. More up again tnis mnnat v Becker to con- q£ Bank Cooper As As regarded « officer of the Federal Re- an Cashier "pj^a'transaction Z in Pennsylvania Group Offers Purify Stores Shares supply copper, steel and willingness to add been as Philadel- The Bank 421 Mc- election of National gerve PJ*ferred stocksuch ^part of a which are block shares subsidiaries tight further evidence ahead, tinue at in are ia ^ale^pnces ranging from $5,200 Becker planning of bigger stocks of mate¬ his before Vice-President vice_President of 674,880 of Sales of the pro¬ 14' Mr. stockholder ratification. , the Feb- office. Finance General of bank's the at Street lion's prefabricated packages of components provide the basic structures for homes with retail ,i vp employ office b°y located DoweB 4%% cumulative prior convertible _ .g He the 450,000 shares of as the 1929 be was aPP°inted Chestnut lize been senior !°„ir0miss0ry 15, 1965. of ^ i-""June lnotes, due deliberate and rea the business of prefabricating houses and other struc- current higher will Inc., engaged in trend toward higher inventories is largely the Industries, engineering the company. $12 000 000 Inventor^ its cated buildinS business as sueHpnartlnf 9n^ cessor to a PartnersMP which, department and during World War n> had pro_ the only dustrial purchased materials tinue 10 numerous than in has America, the In nothing from 1the exchange trans- part are cited. are lower helH The upars the book value per share banks is a most identical. an in items, competition to will Messrs. merger, "For two Assistant Cashier and in 1939 the bank elected bim Vice-President. the said Bank"' w'mch hoYA ZS bank cimrS issued re- as r>n nf rp^uif n the on Dav nromotions TUp entered the ranks to pri5„sJ.r,eJ™er' con¬ most first bank rst snd Withington JtasJ>een_asso- wm ba^a naturaijmegratiun when the ; cnide oil in its refinery and pipe- reception. been areas not now actively covered by Purchasing Executives report that most changes are up- and nnderwrit- commenting in mated witir The Philadelphia Na tional Bank for 44 years, having pro- Sons succeed to Plan, lne promotions effective as of June 30. }in® system and ancillary storage ta"ksJ a11 r+etlned an« seml" have row range, & arp banks was $1,059,762,159. fc nrt.7. Kennedy, Vice-Presi- 0f master antenna systems for tel- and develoPme"t tinues f0 if hv is generally speaking, commodity 7>rices are keeping within a nar- 44% s. a offering actions, Cashier ni„n become with KpVp McGee"" " Corn, munity antenna systems. Employment remains high Commodity $4 .... J ^vard. Gregory on t p tirement the 450 000 divided be r>rn<. the Vice-President, has been as evision comoany intends that have stabilized com- engaged in the design, development, manufacture, sale, installation, servicing and leasing oral and will basis Lph L Jhani nfc^i exchange ofler will presently compa- strength at Electronics gether price the .v v fie most part, Purchasing E'xecu- nn common Electronics Corp. offered at par are purchased materials are again reported up from last month. For n and attenuators, field strength meters, the of liolicy G. June 30 under the bank's ti heading com- smaller about industrial materials market. Stocks lives Co., plies, tap-off accessories, variable operation. There „ dent and Cashier, who will retire on be held in its treasury with no present view to underwriting any distribution. Kerr-McGee Oil & are de- consumer worried are wondering are effect Those 7)anies inflation. prices will some and„they much prices will have llies a granted by Ford and GM their u ~ Vice-President. Senior James H 15 chares stock are common for exchange * Noel Sherrerd & and accrued interest and ipplemental .supplemental surance Alstyne, hand, relatively $2,750,000 of 6% convertible sub14%ordinated debentures, due 1975, good. is Van Butcher July on i^n nnn shares of Kerr-McGee preferred Mr. stock ing production and orders) new on situation Rock Ail port increased on fh„n Deep cnfrn Secnrilies Offered -orders. (7% (EDT) nm fpndprpd JerroW Electronics re¬ duties com- 11 more inan A0U»UUU 3Iiare3 "a3, cdm- a production and 33% increased tires. 3*00 rata upward trend. lew i appointed Tf future" M°n,hS 01 "K>re into the leveling in the Only 36% _r fice of The exchange offer will expire . liowever, indiof . . Division of the bank, have been elected to the newly created of- stock mon planning 57% mittee members report excellent. cations • Deep Rock qj^c in this 90-day or are nZf- As expected, capital /dT AfevnecteS6!^? addiplies. tions June There Withington Vice-Presi- The First National Bank were $228,294,611 and the resources ofThe Pennsylvania Company were $831,467,548. The _total_ for both dents, who have headed the Loan the basis of three shares on W. Ralph John and Inc. 4'/2% cumulaconvertible preferred prior of Philaby announced was McDowell', 27. June ,w - Pa., Frederick A. Potts, President, on ?hta?. fdeniicn? with last month of Kerr-McGee preferred stock Edward Cooper in addition to his is identical wiihTn^'^nfi!".; £qj. share of This Detroit Edison we of Man¬ Pur¬ ness 92% P°rt'n« ,members are operating in the 90-day or lower range in pro- F. of ager last month. 14 page Bank National delphia, of the right to exchange an aggreBuying :/teidP There is little gate 0| 150)0oo of such shares for change in the buying policy situa450 000 shares of Kerr-McGee tion from is delphia Oil Corp. is offerits common stock Rock holders from Thursday, June 30, 1955 . . News About Banks and Bankers Deep Rock Stock Deep pro- chasirg agents who comprise the duction schedules. ing Agents Business Survey Com- Continued Kerr-McGee Preferred Uptrend Seen Leveling Off . resources As of of as the a a Ohio, June capital has $150,000 The 10. $225,000 to brought about by was stock dividend of similar to addition amount $37,500 while ($37,500) sulted from the sale of * new re¬ stock* Volume 181 Number 5442 .. The Commercial and Financial Chronicle . (3021) Continued from first page of American mass vast citizens, to the disadvantage they are now bound to suffer because the Further Opinions I free of enterprise, the E. coddling the worker, the slowdown productivity, in short, every ar¬ E. glad that am C. AGGER KENNETH President, gument that New Brunswick, N. J. advanced against was While I the eight hour day. The opponents GAW are concerned about item every duction FULLER County from change schedules in on plan. clotnes, pay his doc¬ do management executives who annual an is management production or ers drop in mean a not. wage in Bank and broadly pur¬ on power, a drop in demand which in turn affect the economy of all the country. Nobody yet has bility of why into gone production must is that cree industry must have than more that cree it is sis. divine de¬ a enterprise sys¬ tem must be subject to economic depressions periodically, nor is it top, the continued will of use with size auto¬ by starting seems tion may same direction automation. does the as It was the use of MERWIN which National ultimately stabilized the industry itself and drew it away of the slack area seasons It by both the manufacturer and the employee. Unemployment is now "the to seems whether for work industry not performed." begs the question. is all right but let tradition This risk-taking and insures means of America somebody else management many skilled workers intact the wheeled stock management the need that with so rolling not be trouble and expense again, put bor of friction reduces and the than effects wages actually to but the Whether in automobile is spread specified periods. there is in, management that wages instead of being year concentrated in amounts in or us not, the say, industry knows that it will rehire the workers in accord¬ with its production ance schedule, but without the principle of GAW it the that means wait it dropped out to again work ance, out picked must up and at the dictates Actually as of GAW it is the company's employee's form of insur¬ present plied at If a paypents to be future time of need. it do extent was convert It system into is trial ap¬ will country weakened T. PIPER President, fair a whether the not be program Piper so readily Russia Aircraft that Corporation that past have w$ no one and be positive how it In will o n runs g on an keel, even will ies busi¬ ness 1 some p a n where a the it probably make little change, but in industries which the have question part of to ask that so they by he some in some the more ployment Russia got poses a question. have pointed the been that General greatly the Ford us right Walter Reuther was of the by Soviet other world disap¬ Executives Motor Motors of Company have not willing to fight rather than submit their corporate manage¬ ments, their employees and their stockholders, as well as the great will ruinous. one at over it probably .sort needs and an Every incentive when the compensation one to look for work of unem¬ is creased, the incentive which pels be is in¬ com¬ pro¬ portionately decreased. My own feeling is that unless one is doing some productive work, any unem¬ ployment compensation should be small. No one can tell how the various companies may react to a "Guar¬ antee Annual Wage." Some com¬ panies will undoubtedly be very cautious ployees. man 45 about hiring new em¬ It is very difficult for or over to get a job a now and not a patterns wage struc¬ in labor various and compli¬ are generally not well Unem¬ actually what is involved. now Neither Accurately descriptive might be "Contractual Sup¬ prompted chance whim nor legislatures to take our plementary Unemployment Com¬ pensation," or "Private Unemploy¬ unemployment compensation from ment Compensation" in or the "Contract omy alleged phrase, to describe informed withal a a well as and To reader each or certain appealing "Unemployment Compensation" is not vantages both untried different meaning, connotation. falls by new, phenomenon. hearer it has but a recently as dangers Its ad¬ new. its alleged pit¬ have been de¬ bated and balanced in our statutes throughout the land. The importance of public over-emphasized. the issue solved Undoubtedly will be re¬ opinion, rather ultimately by public than by labor leaders and business Both of these contend¬ managers. ing ment insure to understand¬ such by substituting "unemploy¬ compensation" for "guaran¬ teed annual wage"; or, if substitu¬ tion of terms is not feasible, by insisting phrase on coupling with the the familiar more accurate more new and "unemployment compensation." Stripped of its 1955 cowling, then, the issue is not so new. The novelty is not in principle/but in quantity and method: What is already law provided now mented is to for be by public largely aug¬ by private contract. And and put The public is not to be strangled by is production a must be borne with reasonable it by mo¬ compensa¬ cost which all industry uniformity, in the of taxes, and not selec¬ tively and erratically imposed in. manner series a of free-for-alls of eco¬ nomic strength. Our present laws contemplate such uniform distri¬ bution not to of the cost. be dried market demand or is collapse, the this cost element must kept in proper costs and public If If with resulting up, staleness size of relation to purchasing be other power. incentive and vigor are not tosupplanted by listlessness and be lethargy, a wide differential must be maintained between wages and unemployment compensation. Our laws comprehend all of these fac¬ tors, and the public understands them. In due course, un¬ derstanding of the issue cannot be table books. statute nopoly, unemployment tion contracts actually term—a bargaining the interest in this subject is impera¬ tive and paramount. If our econ¬ that is what the Ford and General Motors strive offs, Piper be will taken or W. T. concerted a to compensation has been publicly debated and is widely understood. And it is negotiated ing groups should be eager for clear public understanding of what is involved. Management should lay¬ see ployment automobile seasonal changes and b i g clear, primary a understood by the public. industry. terms casually any¬ in work. the to soften up the Ameri¬ What ideas been had can . certain government. and recently labor contracts in economic . radically different from pressing of the GAW a people moment both the us business' that the are cated, and W. G. Vollmer probably misleading term for the substance of the most widely-publicized ele¬ sides The "Guaranteed Annual Wage" whole will have suf¬ as a is when confusing of for Wage coined W. that those of compensation, contracts and ment once tures and frequent been It seg¬ me responsible wage or a wage structure, guaran¬ teed or otherwise. "Guaranteed a u s in¬ controlling pressing obligation—to at ment and Annual Wage" is 1 T h opinion the public under¬ stands that the issue is unemploy-' newly-designed to up have in terminology. busi¬ economy. where eventually one group it we fered. can the are and confusion designed to only that benefits guaranteed them, we will be right back where we started from. Only the will to work will ■». of to seems who a free enterprise our not public con¬ attempts underway. is render It such coined any individual constructive a in but c o m we I schedule. and the be worker to its anything is guaranteed to a group of the people, it must be paid for by the rest of the citizens. may GAW let that her not already to new decision. provide through these can hope to for, and unemployment compensa¬ tion is something with which the relative degree of bal¬ ance. I believe, therefore, that public has some familiarity and which in some degree it under¬ the achievement of full stability stands. of employment is utterly incom¬ patible with a fluctuating indus¬ "Guaranteed Annual Wage" is a ments. fluctuations the who worked woman for When have increase an or every healthier GAW increase an around For realized him and eco¬ arT~ increase be only. Its much are would areas reduces the possi¬ bility of wildcat strikes. man has development and thing each consciousness, maintain because large do vital must legislative the pre¬ ness. is very I her through a which The management have phrases of laws State promptly . namic exercise of the liberty of her citi¬ zens under the Constitution, and to been matter a voked we inherent the degree that it stultifies initia¬ tive or the progressive and dy¬ f, U C £ e. ® S Hart actual the had job. new GAW insures better la¬ relations, nomic to of initi¬ ating training programs for workers. K. which has attained of keeping its pool of steady progres s." principle Merwin GAW the of confidence, for it. pay the American What is being said in effect is that the will mands pay tracts. are omy posed shall of in as concern. actually be amended in many in¬ de¬ un¬ break recognized public stances to activate these pro- Annual Wage" "its particular, which has always been, of Compensation." If the economy is to be rela¬ Unemployment tively free, with human nature as Perhaps you can think of a better term, but whatever it may be, it it is, we will experience periods should contain the words "unem¬ of excess and periods of reces¬ sion, both for the over-all econ¬ ployment compensation," because the "Guaranteed. supplementary fund is good, but in the respect to now experience that minimize). my opinion, management should strive for stability of em¬ ployment with a high measure of social Rising, his finger on dangers when he says with regulated is inadequate, or wheth¬ a Inc., City that of way In HART industry, have said as term puts* of the main one past (except possibly as they have aggravated the longtrend of inflation, the dan¬ gers that Mr. me "Chronicle," accepted of life. No-1 question is not whether that corrosion in his talk which appeared an employment compensation control Council, York principle in our way body seriously questions its need, yet there are spokesmen who, in opposition to the settlement in the automobile K. Economic New feared insurance of progressive a implications with, think matters, I pretty well the pays should attempt t o minimize dicted of the free market system. tion of stability of production in the dress manufacturing industry from the schemes represent introduc¬ Pacific To begin Full., "bug¬ bears" of the past have ulti¬ mately been woven into the econ¬ omy without the catastrophic toward and Kenneth indicate operation ad¬ and however, I that to annual the c. the finally ; simple answers. op- to teed in and am damages moves PV? eco- monopoly power. This in turn is bound to bring in¬ creasing governmental interven¬ wage of these understands Now it i,s proposed to change those laws by private contract—lo change them in their most critical Wage" are both profound and complex, and I do not pose as one having ready the principle of the GAW. Inherently, in-' it has all the dangers mentioned by Mr. Rising. I must admit, disturbing not Company economic it bill.) Our unemployment compensation laws, then, were patterned accordingly! plan had VOLLMER Railway The a who a Firstly, stability of production. It necessarily follows that the principle of the guaran¬ vance W.'G. think ■ ■ . , it gets the facts in be the so-called "Guaranteed Annual however, already « tnis wish President, The Texas the at so. to as is the done to think::that adopts time the in¬ on believe re¬ posed Agger and powerful cor¬ bound, I believe, to be increasingly destructive of the marginal producer, and to empha¬ demand threat big porations, divine decree that the poor must always be with us. It is conceded that E. stabilized any scheme come a mation E. that due I and the nomics, I deeply at¬ unsound in return no This, company to standpoint ba¬ The with but from tempt to force the free of sound ordinated months will mains. co¬ this may make his task in-When our American unemploy¬ creasingly difficult. In an indus¬ ment compensation laws were en¬ try, such as ours, which has big acted the public took into account peaks and depressions and occa¬ the several counterbalancing con¬ sional long lay-offs, such a plan siderations. It recognized the so¬ might easily use up all our re¬ cial and humanitarian desirability sources and put us entirely out of of cushioning the shock of unem¬ business. After a comparatively ployment. It also remembered the short period of employment, tnis deadening effect of the dole i:i a plan puts the union members in stagnated economy. The American an unfairly strong position. They public had a traditional aversion have priority over the "white col¬ for monopoly. And finally, it took lar" employees who can be laid into account the ability of free, off at any time, and ahead of the competitive American industry to shareholders who often go many pay the bill. (When the public very Mo¬ whole still a and vestment. and industry 1 y a r and the course, Motor nevertheless in¬ on i 1 m broad pe¬ riods of concentrated production to be followed by periods of slack any i s be "Guaranteed Of of, points the mar¬ of opportunity thoughts on my the Wage." answers, security come necessarily injurious to industry. It is not a divine de¬ an t on e n the the of decision some ket procedure, the develop- sta¬ Annual General based free a subject 1, Jersey take passing along the tors economy, Unpaid work¬ chasing question seems that, in nationally coordinated full consumer It of will Company me a receive whether to I Ford concerning the must eat, buy as modify resentations off, tor, to directly related to G. A. W., I go along with him on his major rep¬ pro¬ to "inroads should want New of Mr. Rising's criticisms not some the American way of life," except the worker, who, when laid can Guar¬ Trust Company, Paterson Rutgers University of the the • in er stressing you are the great danger of anteed Annual Wage. Guaranteed Annual Wage of man¬ agements yielded. the on 37 if it is so wished, be resumed on the which should be given debate may weight these several duty, however, should be factors. that compensation Gur clear: first we that the public un¬ sure derstands seems is unemployment the subject un¬ der consideration, and not wages, annual, guaranteed, or otherwise. If the public understands what is truly involved, its judgment probably will be sound enough. It will recognize its interest. It is possible that it will not be willing for its publicly enacted laws to nullified or supplanted by forcefully negotiated labor con¬ be tracts in which the public has no voice, but for which it must pay the bill. Our first and pressing job is to understands what's up. Let's quit talking about "guaranteed annual wage"—that's that see a new the term public which may mean yet the amount of unemployment compensation—its quantum, if you many please pensation—that's really what's in¬ volved, and most people know a nized — has always been recog¬ onepf its critical factors, of public concern. as talk things to about people. Let's unemployment com¬ many little something about it. 38 The Commercial and Financial Chronicle (3022) . . Thursday, June 30, 1955 . ADDITIONS * INDICATES Now in Securities Uranium Academy & Corp. Oil stock. Price—At par (one cent per share). Proceeds —For Office—65 East Fourth South St., Salt Lake City, Utah. Underwriter—Western States Investment Co., same city. mining operations. it Alaska Merchant Line of Alaska, Inc. 20 (letter of notification) 3,000 shares of class A common stock. Price—At par ($100 per share). Pro¬ ceeds—For construction of vessel and working capital. June Office—710 Central Bldg., Seattle 4, Wash. Underwriter —None. • v All State Uranium Corp., Moab., Utah * April 19 (letter of notification) 1,000,000 shares of com¬ mon stock (par one cent). Price—30 cents per share. Proceeds—For mining operations. Underwriter—Gen¬ eral Investing Corp., New York. Filing to be amended. it Allied Industrial Development Houston, Corp., Texas June A 20 stock. Tex. notification) Price—$1 operations. Underwriter Office—1508 Capitol Ave., Houston, — Paul C. Ferguson & Co., same ad¬ dress. it A. M. Electronics, Inc., Washington, D. C. 17 (letter of notification) 2,400 shares of common stock. Price—$10 per share. Proceeds—For general cor¬ June Capitol St., porate purposes. Office—802 N. ton, D. C. Underwriter—None. • Washing¬ Ambassador Hotel of New York, Inc. 163,898 shares of common stock (par $1) to be offered for subscription by stockholders of rec¬ ord May 17, 1955, on basis of one new share for each May 19 filed share held. Price—To be supplied by amendment. Pro¬ ceeds—To repay bank loans. American Underwriter—None. Asbestos Co., Ltd. Feb. 17 (Regulation "D") 600,000 shares of common stock (par $1). Price — 50 cents per share. Proceeds—For general corporate purposes. Underwriter—Maine Invest¬ ment Co., Ltd. /American Machine & Metals, Inc. June filed 3 80,000 shares of stock common to be offered from time to time on (no par) & May 26 (letter of notification) 20,000,000 shares of com¬ stock. Price—At par (one cent per share). Pro¬ ceeds—For mining expenses. Office — 156 East Third South St., Salt Lake City, Utah. Underwriter—Columbia Securities Co., Denver, Colo., and Salt Lake City, Utah. Blue States REVISED Securities Corp. and Carroll, Kirchner Jaquith, inc., both of Denver, Colo. * , it Cliff & Creed Uranium Co., Colorado Springs, Colo. V \ ; 25,000 shares of capital Proceeds—For de¬ Underwriter—None. - June 23 stock Goose Mining;, Inc. (letter of notification) June 7 (letter of notification) (par $1). velopment 1,950,000 shares of common stock.. Price-^-At par (10 cents per share). Proceeds—For mining expenses. Offices—Boulder, Garfield County, Utah, and Box 1055, Farmington, N*. M. Under¬ writer—Birkenmayer & Co., Denver, Colo. Price—$5 expenses. share. per , it Collins * Radio Co. (7/19-20) shares of class B common stock (par Price—To be supplied by amendment. Proceeds— June 29 filed 75,000 $1). To selling stockholders. Underwriters—Kidder, Peabody White, Weld & Co., both of New Y'ork. & Co. and • Bonnyville Oil & Refining Corp., Montreal, Can. April 29 filed $2,000,000 5% convertible notes due July 1, 1975 to be offered for subscription by common stock¬ holders at rate of $100 Price—95% held. stock notes for each df principal holders and 100% to public. costs and general Statement Colohoma Uranium, Inc., Montrose, Cclo. (7/5)-* common stock (par one cent), of which 2,500,000 shares are to be offered pub¬ licly. Price—50 cents per share. Proceeds—For explora¬ April 21 filed 2,960,000 shares of 100 shares of amount to , stock¬ tion Proceeds—For development purposes. Underwriter— and ate corporate effective?: June 21. shares of class 300,000 share. Proceeds—For oil per Mountain ITEMS mon None. (letter of common and gas • Beehive Uranium Corp., Salt Lake City, Utah (letter of notification) 15,000,000 shares of com¬ June 10 mon Registration S|INCE PREVIOUS ISSUE . Colorado Oil & Uranuim Brown Co., Berlin, N.H. filed $14,217,100 of debentures due May 15, 1975, and 142,171 shares of common stock (par $1) being offered for subscription by holders of "called" $5 cumu¬ March June 7 17 lative convertible first preference stock of record stock For • subscribe for $100 of debentures and one share stock for each $5 preference share held. Rights will expire on July 6. Price—$100 per unit. Proceeds—For redemption of $5 preference stocK. t>ners of may derwriter—None. California 16 (par 20 cents). Price—$1 per share. Proceeds— and mining activities. Office — 359 Equitable Colorado Underwriter—Birkenmayer & Co., Sports Price—$1 Racing Association Statement effective May 18. Water Colzona Oil & Uranium Corp., Denver, Colo. April 29 (letter of notification) 3,000,000 shares of com¬ mon stock (par five cents). Price—10 cents per share. Proceeds—For mining expenses. Office—1300 Larimer St., Denver, Colo. Underwriter—Peters, Writer & Chris- Cal-U-Mines, Inc., Reno, Nev. May 2 (letter of notification) 2,250,000 shares of com¬ mon stock. Price—At par (10 cents per share). Proceeds * —For mining expenses. Office—139 Virginia St., Reno, Nev. Underwriter—Coombs & Co. of Las Vegas, Inc., Las Vegas, Nev. & Hecla, tensen, Inc., Denver, Colo. 'Community Credit Co., Omaha, Neb. 6 (letter of notification) 1,000 shares , June of 5^% preferred stock. Price—At par ($100 per Proceeds—For working capital. Office—3023 cumulative share). Farnam St., Omaha, Neb. Corp., same city. Inc. Underwriter—Wachob-Bender June 9 filed 113,592 shares of common stock (par $5) to be offered in exchange for all of the issued and out-'' standing capital stock of Goodman Lumber Co., Good¬ man, Wis., on the following basis: 18 shares for each (letter of notification) cumulative preferred stock (par Co.) New share of Goodman shares of • American Natural June 15 filed Gas Co. 736,856 shares of (7/7) , stock (par $25) to be offered for subscription by common stockholders on the basis of one new common share for each five shares held or about July 7 (with an oversubscription privilege); rights to expire about July 21. Price—To be supplied by on amendment. Proceeds—To be applied to the purchase equity securities of subsidiaries or to replace other corporate funds used for that purpose. Underwriter— common Sept. on stockholders). 3 (regulation ^ —To repay debt and for general corporate (par one cent). derwriter—Tellier & Corp., Omaha, Neb shares stock. cents) and -15,000 (par one cent) to be offered in stock common 10 of 150,000 shares of 7% 95 preferred Price stock and $10 per unit* share one Proceeds — of For working capital. Underwriter—J. J. Riordan & Co., Inc., Broadway, New York City. 42 ; Conjecture Mines, Inc., Coeur d'AFene. Idaho ' May 5 (letter of notification) 200,000 shares of common (par 10 ceeds—For ? Coeur - Price—15 cents per share. Pro¬ and development expenses. Un¬ cents). Price—25 cents per share. Pro¬ Office—326 Wiggett Bldg., Underwriter—M. *A. Cieek, Spo¬ mining expenses. d'Alene, Idaho. kane, Wash. /Constellation Co., Jersey City, N. J.' Uranium March 22 (letter of Carbon Uranium Co. (Utah) April 27 (letter of notification) 746,280 shares of com¬ mon stock (par one cent). Price — 25 cents per share. Proceeds—For mining costs. Underwriter—J. E. Call & Co., Salt Lake City, Utah. stock mon (par Proceeds—For tile Bldg., Corp., Denver, Colo, i notification) 2,855,000 shares of com¬ one cent). mining Price —10 Denver, Colo. cents per Office—206 expenses. §hare. Mercan¬ Underwriter—Bay Securities Corp., New York. Carter Blatchford purposes. of stock Mines, Ltd., Montreal) Canada "D") 2,000,000 shares of common Finance 11 common (subject to withdrawal by Canadian Uranium June stock Corp., N. Y. May 11 (letter of notification) 300,000 shares of com¬ mon stock (par one cent). Price—$1 per share. Proceeds units Underwriter—None. ceeds—For exploration Rare Metals 1955 15, ders: American shares for eachV: Calumet if the required number of Goodman shares have not been deposited and accepted within 30 days from the * date of the mailing of the prospectus to the Goodman To be determined (jointly). Bids—Expected to be received up to 11 a.m. (EDT) on July 7 at 165 Broadway, New York 6, N*. Y. seven Confidential March eight shares " Stock? offer to* of by competitive bidding. Probable bid¬ Blyth & Co., Inc.; The First Boston Corp.; Lehman Brothers; Glore, Forgan '& Co. and W. C. Langley & Co. stock; : share of Goodman 2nd preferred stock; and for each share of Goodman 1st preferred terminate y (par five share. per Price—At market then prevailing. Proceeds To certain stockholders who are receiving such shares in exchange for stock of The Lamb Electric Co. pursuant to a reorganization plan. Agent—American Securities York. (7/7) stock common Proceeds—For purchase of land and other facilities and for working capital. Of¬ fice—Grand Junction, Colo. Underwriter—General In¬ vesting Corp., New York. ; *■ filed Calumet f'" oil cents). & Telephone Co. (7/7) 200,000 shares of common stock (par $12.50). Price—To be supplied by amendment. Proceeds —To repay bank loans and for new construction. Under¬ writer—Blyth & Co., Inc., San Francisco and New York. June V Corp. April 29 filed 6*00,000 shares of common Corp., ' . (letter of notification) 30u,000 shares of common Bldg.. Denver, Colo. same city. June 7, 1955, who have not surrendered their shares for re¬ demption or conversion into common stock. These hold¬ the New York Stock Exchange. for general corpor¬ Underwriters—General Investing York; and Shaiman & Co., Denver, Colo. New * development expenses and purposes. « Consolidated Corp., Chicago, III. ~ " " (letter of notification) 14,250 shares of common (par $1). Price—$3.50 per share. Proceeds—For Cigar Corp., New York (7/7) $17,500,000 of 20-year sinking fund deben¬ 1,1975. Price—To be supplied by amend¬ Underwriter—Equity Securities Co., 11 Broadway, New York, N. Y. June 8 June 3 filed stock tures due June Arizona Amortibanc, Phoenix, Ariz. April 4 (letter of notification) 300,000 shares of mon stock, class A. Price—At par ($1 per share). working capital. Office—80 East Jackson Blvd., Chi¬ cago, 111. Underwriter—Pacific Coast Securities Co., San com¬ Pro¬ ceeds—For working capital. Office—807 West Washing¬ ton St., Phoenix, Ariz. Underwriter—First National Life Insurance Co. of Phoenix, Automatic Remote March 3 cents). filed 540,000 Price—$3.75 address. same per share. common stock (par 50 Beaumont Factors June 7 filed debentures amount. Corp., New York $1,000,000 of five-year 8% due July 1, 1960. Cedar Springs June 8 (letter of Uranium Co., Moab, Utah notification) 300,000 shares of common stock (par five cents). Price—$1 per shpre. Proceeds— * subordinated Price—100% of principal Proceeds—For working capital and expansion Office—325 Lafayette Street, New York mining expenses. Underwriter—Universal Corp., Washington, D. C. Central Reserve Oil Co. ' Street, New York, N. Y. Underwriter—United Equities Co., 136 Liberty Street, New York, N. Y. , Charmin Paper Mills, Inc; (7/7) 17 filed $5,000,000 of convertible June July 1, 1975. of loan business. Proceeds 12, N. Y. Underwriter—None. Wis. — Price — To dye supplied by amendment. Office — Green Bay, W. Baird & Co., Inc., Mil¬ Wis. Bldg., Salt Lake City, Utah. Underwriter—Empire Se¬ curities Corp., same city. (letter of notification) 500 shares of 5% cumu¬ lative preferred stock. Price—At par ($100 per share). Proceeds—To reduce accounts payable, and for working capital and inventory. New York. Boston Philadelphia San Francisco Private Wires Pittsburgh to all Chicago Cleveland 4* ' — 5219 Crookshank Road, stock. Getter of Underwriter—None. • 21 (letter cumulative for Toronto on notification) 300,000 shares of common ($1 per share). Proceeds—To re¬ outstanding debts and for working capital. Office— Underwriters— Stock selected or dealers Exchange ' in Telephone Co., Florence, Ky. notification) 10,000 shares of 5V2% of convertible preferred stock. Price—At share). Proceeds—To repay accounts per additions or United .. par payable, and improvements Underwriter—None. and working capital. it Consumers Power Co. June be 24 filed offered (7/20) 373,689 shares of common stock (no par) for subscription by common stockholders on the basis of one new share for each 20 shares held about July t21; rights to expire on Aug. 5. Unsubscribed shares to be offered to employees of company and its subsidiary. Price—To be not less favorable to the com¬ pany than $4 per share below the then current market price at the time the offering price is determined. Pro¬ construction determined by program. competitive Ripley & Co. Inc. (jointly); Morgan Stanley Ladenburg, Thalmann & Co. Harriman a.m. (EDT) on June 24 stock (no filed par). Underwriter—To bidding. Probable be bidders: and The First Boston Corp. & Co.; Lehman Brothers; Bids—To be received up to July 20. ^ Consumers Power Co. Price—At par 40th/SAve. and Ulster St., Denver, Colo. sold * Consolidated June 11 Clad-Rex Steel Co., Denver, Colo. June 6 tire offices 38, Ohio. Office be ceeds—For it Cincinnati Box & Partition Co. Cincinnati underwriters to Chieftain Uranium Mines, Inc. April 22 (letter of notification) 4,000,000 shares of capi¬ tal stock. Price—At par (five cents per share). Proceeds —For mining operations. Office—223 Phillips Petroleum June 17 to through States. ($10 debentures For plant expansion. Underwriter—Robert waukee, be Sudbury Basin Mines, Ltd., Toronto, Canada Jan. 31 filed 3,000,000 shares of common stock (no par). Price—To be supplied by amendment. Proceeds—For exploration and development of properties. Underwriter —Stock (N. Y.) May 31 (letter of notification) 300,000 shares of common stock (par one cent). Price—$1 per share. Proceeds— For general corporate purposes. Office—130 West 42nd • Underwriter—Eastman, Dillon & Co., New York. Consolidated Invest¬ ment Proceeds—For manufac¬ ture of Teleac Sending and Receiving Units, working capital and general corporate purposes. Office—Balti¬ more, Md. Underwriter—Mitchell Securities, Inc., same city. tal. Francisco, Calif. For Systems, Inc. shares of ment. Proceeds—To repay outstanding long-term indebt¬ edness and short-term bank loans and for working capi¬ (7/21) 100,000 shares of cumulative preferred Price—To be supplied by amendment. Proceeds—For additions and improvements. Underwriter —Morgan Stanley & CO., New York. Volume 181- Number 5442 The Commercial and Financial Chi onicle * (3023) it Cook .(Frank k.) Co., Denver, Colo. June Bldg., Casper, Wyo.r Underwriter—Justin Steppler, Inc., ; > 1 ' * / • Cuba :(Republic of)' 7/5-8) April 29 fifed $2,500,000 of 4% Veterans, Courts and ~ 23 (letter of notification) approximately • 1,000 shares of 5% cumulative preferred stock (par $100) and,' approximately 300 shares Proceeds of stock common None, City, Utah.- Underwriters—Western Securities Corp. and Co;, both of Salt Lake City, Utah. •New York. (par $100);* — Desert Sun Uranium . Co., Inc. April 18 (letter of notification) 3,000,000 shares of com¬ mon stock (par one cent). Price—10 cents per share. Proceeds—For mining operations.. Office 343 South State St., Salt Lake City, Utah. Underwriter J. W. Public Works bonds due 1983. Price—Expected as 99% of principal amount. Proceeds—To Romenpower Electra Construction Co. Underwriter—Allen & Co., New York. , ' Potter Investment . To purchase outstanding shares of Gognon Plating & Mfg. Co.,and organization and.,other expenses. Office—Mile High Center, Denver, Colo. Underwriter— 39 — — Cordillera Mining Co., Denver, Colo. June 8 (letter of notification) 2,995,000 shares of common stock. Price—At par (10 cents per share). Proceeds— For mining operations. Offices 738 Majestic — June Uranium Hicks & Mine,-Inc., Spokane, Wash. 9 (letter of notification) 500,000 shares of capital stock (par 10 cents). Price—20 cents per share. Proceeds — same Deep Rock Water Co., West Palm Beach, Fla. May 23 (letter of notification) 150,000 shares of class A common stock (par $1). Price—$1.25 per share. Proceeds —To acquire Grapette Bottling Co. and for working Cortez Uranium & Mining Co., Denver, Colo. May 27 (letter of notification) 3,000,000 shares of com¬ mon stock (par one cent). Price—10 cents per share. Proceeds—For mining expenses. Office—404 University Building, Denver, Colo. Underwriter—Peters, Writer & Christensen, Inc., Denver, Colo. : capital.; Office—314 Flamingo Drive, West Florida. ; * tal stock; mining (10 cents expenses. vJune 23 per """*'•'• Long Beach 6, Calif. Underwriter—Coombs & Co., of Los Angeles, Inc., San Francisco and Los Angeles, Calif. Club Crown Uranium Co., Casper, Wyo. - r May 6 (letter of notification) 225,435 shares of operations. gas tal stock. —For Office—Denver Bldg., Denver, Colo. Underwriter—Carroll, KirchJaquith, Inc., Denver, Colo.,; " ^ — R. W. Brown Ltd., Tpronto, Canada, on a "best-efforts basis." rk Electro-Ceramics, Inc., Salt Lake City, UKtah June 16 (letter of notification) 66,450 shares of common St., Underwriter—None. Proceeds Underwriter—Guss & Mednick, V Dyno Mines, Ltd., Toronto, Canada. 25 filed 1,1QQ,000 shares of common stock (pax>„ $1). Price—To bp 'related to the current market price on the Toronto Stock Exchange. Proceeds—To American Trading Co. Ltd., the selling stockholder. Underwriter— — 17, N. Y. expenses. Building, Moab, Utah. March lative preferred stock (par $1). Price $1 per share. Proceeds—To purchase and/or discount accounts receiv* able, etc.; to make loans; and for investment in real es¬ tate and business concerns. Office 10 East 43rd New York (par five cents). Priee—At market (estimated at. about 15 cents per share). Proceeds—To selling stock-? holder who received these shares in exchange for shares of Kontika Lead & Zinc Mines, Ltd. Office—205 Star Price—At par (one cent per share). mining Arches * Dependable Enterprises, Inc. June 24 (letter of notification) 175,000 shares of common stock (par 10 cents) and 25,000 shares of 6% non-cumu¬ common stock and ^ Durango Kid Uranium Corp., Moabr Utah April 1 (letter of notification) 30,000,000 shares of capi¬ & ner Cromwell Uranium & Development Co., Inc. May 25 (regulation "D') 300,000 shares of common stock (par five cents). Price—$1 per share, Proceeds—For exploration and development expenses, etc.. Offices— Toronto,. Canada, and New York, N. Y. Underwriter— James Anthony Securities Corp., New York. oil Se¬ . . (letter of notification) 2,999,000 shares of com¬ (par one cent). Price—10 cents per share. Proceeds—For share). Proceeds Office—1226-1411 Fourth Ave, Seattle, Wash; Underwriter—Mid-Continent curities Co., Wichita, Kansas. stock mon , com¬ Bldg., it Denver-Golden Oil & Uranium Co. of capi¬ share), Proceeds Office—2485—American Ave., Price—At par Pa. stock. Price—At par (10 cents per —For mining expenses. mon Coso —rFor Renova, ^-Dinosaur Uranium Corp., Seattle, Wash. (letter of notification) 1,750,000 shares of Palm Beach, " 1 Co., June 20 Fla; Underwriter—Anderson Cook Co., Inc., Palm Beach, Uranium, Inc., Long Beach, Calif. May 31 (letter of notification) 3,000,000 shares Oil (letter of notification) 200,000 shares of common (par 10 cents). Price—25 cents per share. Proceeds —Working capital for drilling operations and acquisi¬ tion of new properties. Office—704 Erie Ave., Renova, Pa. Underwriter—None. stock Corp., -i ■*' city, & June 8 mining expenses. Office—408 Hutton Bldg., Spo¬ kane, Wash. Underwriter Standard Securities Bldg., Co., Inc., Denver, Colo. it Devonian Gas —For Denver, Colo., and 317 Main St., Grand Junction, Colo. Underwriter^-Lasseter & Co., Denver, Colo. • Dahl r - stock. Deseret Uranium Corp., Salt Lake City, Utah (letter of notification) 2,000,000 shares of capital stock. Price—At par (15 cents per share). Proceeds— For mining expenses. Office^-527 Atlas Bldg., Salt Lake Price—At par ($1 per share). Proceeds—For pur¬ chase of equipment and supplies; and for tal. Office—975 East tfifth South June 9 tJtah. v working capj-. St., Salt Lake City, Underwriter—None. Electronics Co. ot Ireland 6 filed 300,000 shares of capital stock. Jan. NEW July < 1 (Friday) Long Island Lighting Co. (OfieriDg to ISSUE • 5- Republic (Offering to Insurance Blyth Boston . & Corp.) Co., by The * 4 .1 ' v Corp. (Bateman, ... -...Common ' & William ; ' R. (G. Silver F. & Co.) & Precision Southland Corp. . 4-- / ■ i:" \u.( , £ ,v Debentures Corp.) Salt -Common 61,302 - Co.; and shares - Common '' (Tuesday) Co & Class B Co. and White, & Co., Inc. and Weld & Co.) 1 & Weeks) Inc.) Inc.) (Offering Washington Natural Gas Co (Barrett Herrick & Consumers $750,000 .Common Co., Inc.) to Common the ' Kroehler Power Mfg. $298,290 .Common Co.) a.m. EDT) 373,689 & Co.) 216,828 (Morgan basis of Co.) 100,000 '; * share for each five shares Proceeds—For general held. corporate $6,000,000 of convertible subordinated de¬ 1, 1975. Proceeds—To Price To be supplied by $4,970,000 of funded improvements. Un¬ derwriter—Merrill Lynch, Pierce, Fenner & Beane, New — prepay debt and for property additions and Preferred & new share. bentures due July amendment. (Thursday) Stanley one per June 24 filed shares Consumers Power Co.. $2,112,500 ' Underwriter—Allied Underwriters Co., same address. it Ferro Corp., Cleveland, Ohio (7/14) shares ..Common Weld July 21 Vanadium Queen Uranium Corp & .Common 11 - purposes.^ Office—Newhouse Bldg., Salt Lake City, Utah. Co Co (White, (Wednesday) Noel (Wednesday) stockholders—bids Underwriter—None. April 21 (letter of notification) 6,000 shares of common stock (par $10) to be offered first to stockholders on Price—$40 July 20 $1,250,000 and Federal Security Insurance Co. $20,000,000 150,000 shares ^nd to State Farm Bureau Federations other state laws. shares Debentures Hornblower (Blyth & Co., Common 75.000 Federation Price—At 100% of principal amount (in denominations of $250 each). Proceeds—To provide company with necessary funds to comply with require¬ ments of surplus to policyholders under New York and ' • -k Farm Family Mutual Insurance Co., Albany, N. Y. $1,500,000 of 5% debentures to be offered directly to members of the American Farm Bureau local organization. $1,298,500 •'-* -'V — June 28 filed (Monday) Noel & Co.) .*"V mining expenses.r Off ice—2320 South Main Street, Lake City, Utah. Underwriter Eliason, Taylor, Co., Las Vegas, Nev. ' V Cafarelli West Coast Telephone Co.__'_ Common (Barrett Herrick & Co., Alstyne, iv; Peabody (Blyth $600,000 Stewart Oil & Gas Co (Van For ■ . Common Investing July 6 Co.) Pacific Finance Corp $266,000 Racing Corp (General & July 19 ..Common Inc.) (General Investing Corp.) ' : ' (Kidder, Inc.. Co., v Collins Radio $2,500,000 Industries, Rothschild Creek ; „Bonds (Allen Chemical Staats (Van Alstyne, Co.) $1,250,000 (Republic of) Natick $6,000,000 Eichler & Co.;-First California July 18 Common Investing Corp. and Shaiman Beane) (Friday) Livingston Oil Co (Tuesday) Uranium, Inc (General Cuba & S. • Coloboma Fenner Petrolane Gas Service, Inc.___. Co.), $246,400 5 Pierce, * ' July Debentures .July 15 >' - ■»• Fairway Uranium Corp., Salt Lake City, Utah .v ,May 23 (letter of notification) 275,000 shares of capital stock (par 50 cents). Price—$1 per share. Proceeds-^ (Thursday) ... .(Merrill Lynch, . ;• First (Oiiefing to stockholders—underwritten by Harrison & ; ; shares Strevell-Paterson Finance Co.__ Brothers Inc.; -Common 100.000 Ferro 624,170 shares Co stockholders—underwritten r July 14 Common by The First Boston Corp.; and W. C. Langley & Co.) Old CALENDAR ; - - stockholders—underwritten Price—At ($1 per share). Proceeds—For machinery and build¬ ing and working capital. Office — 407 Liberty Trust Bldg., Philadelphia, Pa. Underwriter—None. par shares York. July 7 American Natural (Bids : California 11 (Thursday) Gas EDT) a.m. Water & - ......Common 736,856 Telephone (Blyth & Co., Inc.) Charmin July 22 Co..—_i shares W. Baird & - , Sulphur Co., 912,512 ; Debentures $17,500,000 (Stone & Webster Co.) Securities Curtis; July 11 Corp.) $700,000 (Bids "T (Monday) be to invited) Sept. 5 Housatonic Public Industrial Hardware Mfg. Co., Inc. (Offering to and D. Blauner Baruch & Co., Brothers and Inc.; & Co.. 300,009 Hallowell, Inc.) shares of Sulzberger $1,500,000 & v Service Corp September Co.; debentures Common underwriting) stock (Bids McLean Securities Corp (White, Siegler Weld Preferred & Common Co.) & 148,000 units $325,974 July 12 225,000 shaies (Bids to be to 177,500 Co., Pierce, Inc.; $30,000,000 shares Blyth Fenner & & Co., Bcane) Wright Line, Inc. Webber, Inc.; and Jackson & Curtis) Merrill EDT) 18 Oct. $12,000,000 110,000 Common $6,000,000 a.m. Worcester County (Tuesday) (Bids shares Electric to be $22,000",000 Co invited) Bonds $8,500,000 •j&v July Texas Eastern 13 (Wednesday) Transmission (Dillon, Read & Co, Corp Inc.) $16,000,000 November 9 Preferred Southern (Wednesday) Co. (Bids .Common to be invited) 500,000 are to be offered in $2), exchange stock (par 25 cents) of Phil¬ Products Co. at the rate of five Foremost common (in denominations of $1,000 each). Proceeds—To retire existing debt, acquire Northwestern Bell properties in Leighton, la., and for conversion of both exchanges to operation. Underwriter — shares Wachob-Bender Corp., Omaha, Neb. Freedom Bonds 11 .Preferred Class B EDT) Ohio Power Co (Bids Service Co a.m. of Insurance Co., Berkeley, Calif. June 6 filed 1,000,000 shares of (Tuesday) ^...Preferred 11 Underwriters—Mc- Fowler Telephone Co., Pella, la. May 6 (letter of notification) $260,000 of 4% first mort¬ gage bonds, series A, due May 1, 1975. Price—At par dial Common be invited) (Bids Bonds .. invited) Northern Indiana Public (Paine, $15,000,000 Ohio Power Co ' Republic invited) Sept. 20 (Tuesday) Illinois Bell Telephone Co Lynch, be Bonds Common (William R. Staats & Co.; (Central to (Tuesday) —Jf___ Utah Power & Light Co (Bids Corp. 13 Utah Power & Light Co com¬ Proceeds shares for each Philadelphia Dairy common share; and 152,499 shares are to be reserved for issuance under Employees' Restricted Stock Option Plan for Fore-# most officers and key employees, $67,000,000 (Monday) stockholders—no share. common Debentures Debentures & Common (Milton 343,025 shares for*68,605 shares (Tuesday) Pacific Telephone & Telegraph Co Common Investing of which & adelphia Dairy Primary Metals Corp (General Jackson $4,500,000 (Friday) per Foremost Dairies, Inc., Jacksonville, Fla. April 21 filed 495,524 shares of common stock (par ^.Preferred Corp.; Paine, Webber, ethers) $1,000,000 and (par $1). Price—$1.87% capital and surplus. increase - Southern Colorado Power Co v stock Daniel Lewis & Co., Greensboro, N. C.; Dietenhofer & Heartfeld, Southern Pines, N. C.; and Calhoun & Co., Spartanburg, S. C. July 27 ( Wednesday) Debentures July 8 —To (Monday) Aug. 16 1 mon shares (Israel & Co.) $300,000 .Common $600,000 Corp. & Inc.) Western Nebraska Oil & Uranium Co., Inc.—Com. $5,000,000 " 1 Inc.) & Co.) (Bear, Stearns Co. July 25 Debentures Cigar Corp.. (Eastman, Dillon - & 200,000 shares 'i(General Investing Corp.) Gulf Fidelity Insurance Co., Mullins, S. C. (letter of notification) 86,666 shares of March 25 Common (Offering to stockholders—underwritten by Dillon, Read Co.___.__Common .Colorado Sports Racing Association Consolidated (Friday) Goodyear Tire & Rubber Co T, Paper Mills, Inc ''.(Robert - common stock (par $10). Price-^-$22 per share. Proceeds—For capital and surplus. Business—All insurance coverages, except, life, title and mortgage. Office—2054 University Avenue, Berkeley, Calif., c/o Ray B. Wiser, President. Underwriter—Any underwriting agreement will be made on behalf of this company by Uni-Insurance Service Corp. Fremont Uranium Corp., Denver, Colo. April 22 (letter of notification) 600,000 shares of com¬ mon stock (par 10 cents). Price — 50 cents per share. Proceeds—For mining expenses. Office—235 Ivy St., Denver, Colo. Underwriter—L. A. Huey Co., same city. Continued on page 40 . 49 The Commercial and Financial Chronicle (3024) Continued Frio from Inc., Anthony, Texas Underwriter son, GAD mon mon Inc., Alexandria, Enterprises, purchase O'Connor J. Underwriter—T. factory of Vernon Mount Office—1710 working and Avenue, and capital. Alexandria, Va. Associates, Washing¬ make Office loans. — 1436 East Van Buren exploration and development Salt Lake Co., Office— expenses. construction St., of of model "Horton and expenses incident thereto. Wingless Petroleum Idaho Power Amos the basis of on one new Price—At ($100 par cumulative preferred share). per Proceeds—For additions to properties. Underwriter—Wegener & Daly Corp., Boise, Idaho, which has agreed to purchase 3,000 shares and has an option to purchase up to 12,000 addi¬ tional shares. Leborn Oil & Uranium Co. (letter of notification) 6,000,000 shares of capital (five cents per share). Proceeds— For mining expenses. Office 124 Vfe South Main St., Newcastle, Wyo. Underwriter — Mid-American Securi¬ ties, Inc. of Utah, Salt Lake City, Utah. Illinois American Casualty Co. Statement • effective June jf Great Eastern Mutual Life Insuarnce Co. (letter of notification) 45,583 shares of common stock (par $1) to be offered for subscription by stock¬ if Life Price—To stock¬ share; and to public, $5 per share. Pro¬ ceeds—To increase capital and surplus accounts. Office— 210 per Boston Bldg., Denver, Colo. Underwriter—None. & s Inca Harley Patents, Inc. April 6 (letter of notification) 10,000 shares of capital «tock (par 10 cents.) Price—$1.50 per share. Proceeds— For working capital. Office—580 Fifth Ave., New York 36, N. Y. Underwriter—E. E. Smith Co., same city. Hartford Gas Co., Hartford, Conn. May 10 filed $1,500,000 of 3y4% 10-year convertible de¬ bentures due July 1, 1965, being offered first to preferred and common stockholders of record May 6 at rate of $25 - principal amount of debentures for each three shares of clock held; rights to expire on July 1. Price—At par. bank repay improvements. loans and for additions and Underwriter—None. .April 12 filed 200,000 shares of cents). Price—$1.50 per share. stock (par 10 common Proceeds etc. — Co., For mining New if Haydock Fund, Inc., Cincinnati, Ohio 23 filed 624,500 shares of capital stock. June At market. York Proceeds—For investment. preferred stock common stock 30 shares of stock. (par $2.50) and 120,000 shares of (par 25 cents) to be offered in units of common stock and • two shares of preferred Price—$25 per unit. Proceeds—For production films, and working capital. Office—407 Pennsyl¬ Bldg., Washington 4, D. C. Underwriter—None. Hercules Plastics Corp. (letter of notification) 141,000 shares of com¬ mon stock (par 25 cents). Price—$2 per share. Proceeds -—For equipment, loan to subsidiary and working cap¬ June 16 ital. Office—9 Rockefeller Plaza, New York, N. Y. Un¬ derwriter—Lincoln Securities Corp., same city. Offering —Now being made. /• Hertz Corp., Chicago, III. on as basis of $100 of debentures for each of June 24; rights to expire on July 11. JPrice—1021/>% of principal amount (flat). Proceeds— For working capital for expanded operations. Business— Automobile rental and truck leasing. Underwriters— X<ehman Brothers and Hornblower & Weeks, both of New York. Home-Stake (one cent per of share). Pro¬ Office—1946 S. Main St., Underwriter — Guss & Mednick expenses. .» Production Co.. Tulsa, Okla. May 12 filed 60,000 shares of capital stock (par $5) and debentures (par $100) to be offered for sale in 'L000 Co. of Alabama' National Bank Bldg., Gadsden, Ala. Underwriter—Burius Randolph Winstead, Vice-President and Assistant Secre¬ tary, same address. - Little Star Uranium Co., Inc., Casper, Wyo.' May 25 filed 5,000,000 shares of common stock (par 10 cents per share.' Proceeds—To pur¬ chase machinery and equipment; for drilling and recon¬ naissance surveys; for acquisition, of additional proper¬ ties; and for working capital and other purposes. Under¬ writer—Peters, Writer & Christensen, Inc., Denver, Colo. • Livingston Oil Co., Tulsa, Okla. (7/18-21) 16 filed 742,000 shares of common stock (par 10 June • Industrial Hardware Mfg. Co. (7/11-15) May 12 (amendment) $1,500,000 of 5% debentures due 1975 and 300,000 shares of common stock (par 50 cents), of which 85,000 shares are to be sold to Seymour and Bernard Offerman at $5 per share. Price—To be sup¬ plied by amendment. Proceeds—To purchase Hugh H. Eby Co. and Wirt Co. Underwriters—Milton D. Blauner & Co., Inc., New York; Hallowell, Sulzberger & Co., Philadelphia; and Baruch Brothers & Co., Inc.. New cents). York. if Inland Steel Co., Chicago, III. June 23 filed 500,000 shares of capital stock (no par) subscription by officers and employees to be offered for under the company's 1955 Employees' Stock Option Plan. International Fidelity Insurance Co., Dallas, Tex. March 30 filed 110,000 shares of Price—$5.75 share. per common stock (no par). Proceeds—To 12 Underwriter—Franklin Price—$2.75 per share. Proceeds—For purchase of properties and working capital. Alstyne, Noel & Co., New York. Underwriter Lone Star Uranium 1 Drilling Co., Inc* April 7 (letter of notification) 570,000 shares of — Van . stock (par 10 cents). Price—50 cents common share. Pro¬ ceeds—For mining expenses. Office—1100 Fidelity Union Life Bldg., Dallas, Tex. Underwriter — per Christopulos- Nichols Co., Las Vegas, Nev. Long Island Lighting Co. (7/1) / 657,713 shares of common'stock (par $10), of which 624,170 shares are to be offered for subscrip¬ tion by common stockholders of record July 1 on the June 10 filed selling stock¬ Securities Co., Dallas, basis of one new share for each 10 shares held; rights to The remaining 33,543 shares are to be offered to employees by company. Price—To be sup¬ plied by amendment. Proceeds—For construction pro¬ gram. Underwriters—W. C. Langley & Co.; Blyth & Co., expire on July 18. Inc.; and The First Boston Corp.; all of New York. it Interstate Adjusteze Corp., Anaheim, Califi June 23 filed 345,534 shares of common stock (par $1) to be offered for subscription by common stockholders of Interstate Engineering Corp. on a share-for-share Lutah Uranium & Oil, Inc. May 23 (letter of notification) 3,000,000 shares of com¬ mon stock (par one cent). Price—10 cents per share. Price—$2 share. Proceeds — For machinery equipment; and for working capital. Underwriters— Dempsey-Tegeler & Co., St. Louis, Mo.; Cruttenden & Co., Chicago, 111.; and Fairman & Co., Los Angeles, Calif. per and Israel Pecan Plantations, Ltd. Feb. 28 filed 24,900 shares of ordinary common stock (par one Israeli pound). Price—$10 per share. Proceeds —For capital expenditures. Underwriter—None. Offices —Natanya, Israel, and New York, N. Y. Kachina Uranium Corp., Reno. Nev. Proceeds—For Continental mining operations. Office—Suite May 12 (letter of notification) 600,000 shares of common Bldg., Salt Lake City, Utah. writer—Havenor-Cayias. Inc., same city. Magna Theatre Corp., New York May 23 filed 122,300 shares of common stock (par five cents), 6,000 outstanding warrants for the purchase of 439,800 shares of common stock (as well as the common stock), and 6,000 outstanding units of "Oklahoma" par¬ ticipation certificates (each certificate entitling the holder to receive 1/6,000th of 5/12ths of Magna's homa." Denver, Colo. United Artists Theatre ^Kentucky Harness Racing Association, Inc. 20 (letter of notification) $280,000 of 6% 10-year com¬ stork (par one cent) to be offered in units of a $1,000 debenture and 100 shares of stock. Price—$1,001 unit. per¬ "Okla¬ present holders, including Kuhn, Co.; United California Theatres, Inc.; Harris,. Upham & Co.; Prudential Theatres, Inc.; Carl M. Loeb, Loeb June of Proceeds—To stock (par 10 cents). Price—50 cents per share. Proceeds —For mining expenses. Office—206 N. Virginia St., Reno, Nev. Underwriter—Whitney, Cranmer & Schulder, Inc., 1003, Under¬ Bank centage of profits due from the distribution mon subscription 15 shares held par Insurance (letter of notification) 6,000 shares of common stock (par $5). Price—$50 per share. Proceeds—To in¬ crease surplus and capital accounts. Office—American cents)..,Price—15 .. cumulative income debentures and 28,000 shares of June 3 filed $5,058,300 4% convertible subordinated de¬ bentures due July 1, 1970 being offered for by stockholders Morgarv — 6 Co., Salt Lake City, and Moab, Utah. of pilot vania mining Salt Lake City, Utah. basis. Price— if Hemisphere Products, Ltd., Washington, D. C. June 8 (letter of notification) 8,000 shares of 10% cumu¬ lative (jointly); Bids—Expected to Corp., Salt Lake City, Utah of notification> 15,000,000 shares 25 (letter capital stock. Price—At ; Texas. Underwriter—Dobbs & •City, will act as agents. expenses, Uranium holders. Hawk Lake Uranium Corp. Kuhn, Loeb & Co. July 12. April Corp., Houston, Texas (7/7) June 17 filed $3,000,000 of 5% series A convertible <Jeebntures due July 1, 1970, and $1,500,000 of 5% series B convertible debentures due July 1, 1970. Price—To be supplied by amendment. Proceeds—To repay promissory note and for working capital and general corporate pur¬ poses. Underwriter—Bear, Stearns & Co., New York. .Proceeds—To Union; Securities Corp. on ceeds—For Gulf Sulphur . and be received Underwriter—None. Nev. Co. Stanley & Co.; if Griff Mines, Inc., Winnemucca, Nevada May 26 (letter of notification) 220,000 shares of common stock (par 10 cents). Price—$1 per share. Proceeds— For mining expenses. Office—151 Sonoma St., Winne¬ mucca, June Bell Telephone Co. (7/12) June 21 filed $30,000,000 of first mortgage bonds, series D, due July 15, 1995. Proceeds—To repay advances from American Telephone & Telegraph Co., parent. Under¬ writer—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; Glore, Forgan not subscribed for by Alabama pany. Statement effective June 16. Sept. 10, 1955 will be offered to public. of Office—Gadsden, Ala. Un¬ None, sales to be handled by Burlus Ran¬ dolph Winstead, Secretary and Treasurer of the com¬ derwriter June 23 holders of record June 10 in the ratio of one new share Co. increase capital and surplus. Illinois American Fire Insurance Co./ Illinois Insurance June 2 filed 750,000 shares of class B (non-voting) com¬ mon stock (par $1). Price—$3 per share. Proceeds—To 16. May 5 filed 100,000 shares of common stock (par $2). Price—$5 per share. Proceeds—To engage in insurance business.„ Office— Champaign, 111. Underwriter—None. York. . , Life and Accident ; — held; rights to expire on Aug. 8. Price—To be supplied by amendment. Proceeds—For expansion and working capital. Underwriter — Dillon, Read & Co., Inc., New holders, $3 Price—At par stock. — • share for each 10 shares ior each three shares held; stock Underwriter— June 8 r - Bldg., Salt Lake City, Utah. & Co., Denver, Colo. Sudler ment; and additional working capital. Business—Proc¬ essing, packaging and merchandising of new proprietory medicine, KARY-ON. Underwriter—None. May 5 filed 100,000 shares of common stock (par $2). Price—$5 per share. Proceeds—To engage in insurance business. Office Champaign, 111. Underwriter — None. 15,000 shares of 4% C. LeBlanc Medicine Co., Inc., Lafayette, La. April 6 filed 1,000,000 shares of common stock (par 10 cents). Price—$1 per share. Proceeds—For purchase of land, plant, warehouse, office building and equip¬ Co., Boise, Idaho if Goodyear Tire & Rubber Co., Akron, Ohio (7/22) June 28 filed 912,512 shares of common stock (par $5) to be offered for subscription by stockholders of record stock. filed Proceeds—For expansion of Canadian subsidiary. Corp., Salt Lake City, Utah (letter of notification) 2,850,000 shares of com¬ mon stock (par five cents). Price—10 cents per share. Proceeds—For mining expenses. Office—209 Phillips Co., Dallas, Texas. 7 city. same La Sal Uranium Aircraft" June Office—2174 S. Main St., — Guss & Mednick Underwriter May 11 Underwriter—None. if General Outdoor Advertising Co., Inc. June 23 (letter of notification) 6,000 shares of common .stock (no par) to be offered to certain employees. Price —At closing market price on New York Stock Exchange -on July 12 (closed at $31.62V2 per share on June 28). Proceeds—For general corporate purposes. Office—Har¬ rison and Lootnis Sts., Chicago, 111. Underwriter—None. of Underwriter—White, Weld & Co., New York. Sulphur Co., Houston, Texas April 25 filed 500,000 shares of common stock (par 10). Price—$1.20 per share. Proceeds—For exploration for sulphur and related activities. Underwriter—Garrett & Homes, Inc. Dec. 15 filed 300,000 shares of common stock (par $1). Price—$5 per share. Proceeds—For plant expansion, new equipment, inventory and working capital. Office— Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬ ler & Co., New York. shares share). Pro¬ per 160,328 shares are for account of company and 56,500 shares for account of selling stockholders. Price— Humble General New- York> of which 100,000 shares for account of William E. Horton, President. Price—$1 per share. Proceeds—For Underwriter—None. City, Utah. (one cent To be supplied by amendment. and repayment of bank loan and company Co., if Kroehler Mfg. Co., Naperville, III. (7/20) June 28 filed 216,828 shares of common stock (par $5), of which 400,000 shares are to be offered for account of if General Finance Co., Phoenix, Ariz. (letter of notification) 100,000 shares of class B common stock (par $1). Price—$3 per share. Proceeds phoenix, Ariz. stock. Price—At par ceeds—For mining expenses. common Bend Hortoii Aircraft Corp., Las Vegas, Nev. April 26 filed 500,000 shares of common stock (no par), June 6 June 21 Thursday, June 30, 1955 . Knapp Uranium & Development Co. April 21 (letter of notification) 20,000,000 South, Salt Lake City, Utah. Underwriters —James Anthony Securities Corp., New York; Lawrence A. Hays Co., Rochester, N. Y., and Ned J. Bowman Co., Salt Lake City, Utah. / ton, D. C. —To . Gregory & Sons, and Sutro Bros. & City, have agreed to solicit tenders. 10 West 2nd 15 ceeds—For stock —For Va. (letter of notification) 260,000 shares of com¬ stock (par 10 cents). Price—$1 per share. Pro¬ March $100 debenture, or Proceeds—For unit. Uranium, Inc. (letter of notification) 150,000 shares of com¬ (par one cent). Price—$2 per share. Proceeds March 16 Jr., El Paso, Tex. * one per of l)ulsa, Okla., is President. Horseshoe Norman D. Patterson, — and Price—$400 forking capital. Underwriter—None. O. Strother Simp¬ * — working capital. shares of stock multiples thereof. (letter of notification) 34,997 shares of common At par ($5 per share). Proceeds — For Price stock. of 60 units 30 ^ page Frozen Foods, June 10 , i) . & Rhoades & Co.; Brown Marine Midland Brothers Harriman & Co.; and Circuit, Inc. Corp., Buffalo, N. Y. June 2 filed 160,500 shares of common stock fnar $5) to ;be offered in exchange for all of the issued and out¬ standing capital stock of The Jamaica National Bank of L. I., N. Y. at rate of 1.6 shares of New York, Jamaica, Proceeds—For purchase of land, construction of proposed harness' racing plant, and working capital. Marine Midland stock for each share of Jamaica National stock held of record June 17. The offer, which will ex¬ Office—Versailles, Ky. pire per • Kerr-McGee June 6 filed Oil Underwriter—None. Industries, to Inc. 450,000 shares of 4V2% prior convertible (par $25) were offered on June 27 in exchange for 150,000 shares of Deep Rock Oil Corp. common stock on a three-for-one basis; the offer to expire on July 15. These preferred shares are part of a block of 674,880 shares owned by Deep Rock which preferred were stock acquired by them on, April 27, 1955. Agents— on July 1 (subject to 60 days extension), is subject less than 80% (80,000 shares) of acceptance of not the stock of Jamaica Marine Midland National. Corp., Buffalo, N. Y. June 20 filed 96,000 shares of common stock be offered in exchange for all the issued and capital ."rate stock of four of Auburn shares of Trust Marine Co., Midland share of Auburn stock held of record (par $1) to outstanding Auburn, N. Y., at stock f^r July 1, 1955. each The Volume 181 Number 5442 The Commercial and Financial Chronicle ... (3025) offer is subject to acceptance by the holders of not less than 80% (19,200 shares) of the stock of Auburn. Under¬ • Supply Co. 198,990 snares of capital stock (par $10) being offered for subscription by stockholders of record writer—None. ★ Marvin • June Electric 15 Medical Abstracts, Inc., Philadelphia, Pa. 15 (letter of notification) 300,000 shares of one cent). Price—$1 —For working capital, etc. Natick June Price—$10.75 additional share. per groves and Proceeds—For eral corporate purposes. tropical fruits. (par $10). working capital and other of gen¬ Business—Production and sale Israel; also plans to grow sub¬ of citrus fruits in State of Underwriter—None. 28 filed 314,718 shares of common stock (par $12.50) to be offered in exchange as follows: 102,250 shares to class A stockholders of Devoe & Raynolds & Co., Inc. on basis of 1% shares for each Devoe share; 6,621 shares to class B common stockholders on 1%-for-l basis; 127,623 shares to ers of New York basis; 53,324 common Shipbuilding Corp. shares to of Devoe stockhold¬ share-for-share on a stockholders common of "Ten¬ Products & Chemical Corp. on a iy4-for-l basis; 13,453 shares to common stockholders of Newport Steel Corp. or* a l-for-2.1 basis; 10,899 shares to common stockholders of Marion Power Shovel Co. on a lV2-for-l nessee basis; and 548 shares of class B common stockholders of The Osgood Co. on a l-for-lVk basis. Underwriter—None. Midwestern United Life Insurance Co. : Chemical Industries, Inc. Fort Wayne, Ind. Underwriter—None. Offering—Tempo¬ rarily delayed. Millsap Oil & Gas Co., Siloam Springs, Ark. (letter of notification) 599,200 shares of com¬ March 17 . New Bristol Oils., Ltd., Toronto, Canada April 11 filed 2,400,000 shares of common stock 1,600,000 shares ting,expenses. • Price—$2 per Office—113 ^ share. Bernard St., Proceeds—To selling stockholder. New Haven Water Co. • Proceeds—To repay bank loans and for new Office—New Haven, Conn. Underwriter— construction. stock. mon -Price—At (one cent par per share). Pro¬ Office—210 Zions Savings City, Utah. Underwriter ceeds—For mining expenses. Bank Building, Salt Lake Potter Investment Co., com¬ — city. same Moab Valley Uranium Co. > May 16 (letter of notification) 2,000,000 shares of bstock. mon ceeds—For Salt Lake "Co., mon Office—716 Underwriter (letter of stork. Salt Price—At par mining Lake Morning Sun mon 14 Bldg., Moab Brokerage — (five cents expenses. City, Office share). per 706 — com¬ Pro¬ Newhouse Utah. Underwriter—Mid-Con¬ city. Uranium, Inc., Spokane, Wash. notification) 700,000 shares of com¬ (letter of stock (par 10 cents). Proceeds—For mining Bldg., Spokane, Wash. same Pro¬ Newhouse Mines, Inc. notification) 6,000,000 shares of tinent Securities, Inc., same June com¬ share). per Carlo Uranium ceeds—For Bldg., mining costs. cents city. Monte 6 (10 par City, Utah. same June Trice—At Price — 25-cents Office expenses. — per 415 Underwriter—Pennaluna & Co., city. (John) & Co., Ottumwa, Iowa March 31 stock (letter of notification) 16,000 shares of capital (no par) to be offered in exchange for a like number of shares of John payment. J. Felin Co., Inc., plus a cash Lake $10 per (letter of share; and for comsjoon, $2.50 —For construction —Rambo, J. S. Close Hope & & Co., loans per share. Proceeds anSacquisib'ons. Kerner Inc., Philadelphia, Pa.; and Scranton, Pa. Underwriters a on a 60-for-l basis; 100,000 shares acquired. Underwriters—None. , May 25 (letter-of notification) 300,000 shares of common, (par five cents). Price—10 cents per share. Pro¬ stock ceeds— For mining South, Lake; City, Salt Brokerage City, Utah. Lake Office expenses. Western — 688 East 21st Utah. Underwriter — TransNew Orleans, La., and Salt Co., ■ Permian Basin Uranium Corp. June 2 (letter of notification) 640,000 shares of common stock. Price—At par (10 cents per share). Proceeds— For mining costs. Office—613 Simms Building, Albu¬ N. Mex. - Underwriter— Western Securities Corp.,. Salt Lake City, Utah. querque, it Petrolane Gas Service, Inc. (7/15) 24 filed 01,302 shares of common stock June Price—To be supplied by amendment. (par $2). Proceeds — For working capital. Office—Signal Hill, Calif. Underwrit¬ ers—Bateman, Eichler & Co., First California Co., Inc. and William R. Staats & Co., all of Los Angeles, Calif. Pictograph Mining & Uranium Co., Inc. 2,400,000 shares of common stock (par one cents per share. Proceeds—For ex¬ and mining operations and for purchase of Price—25 ploration equipment and additional claims or leases when justi¬ fied. Office—Edgemont, S. D. Underwriters—Generai Investing Corp., J. H. Lederer Co. and McGrath Secu¬ rities Corp., all of New York City; and Shaiman & Co.* Securities, Salt City, Utah. Denver, Colo. • Northern June Indiana Public Service Co. (7/12) 20 filed 120,000 shares of cumulative preferred (par $100). Price—To be supplied by amendment. Proceeds—For construction program. Underwriters— stock Central Republic Co. Inc. and (Inc.), Chicago; and Blyth & Co., Pierce, Fenner & Beane, both Merrill Lynch, of New York. Pioneer Mortgage & Development Corp. April 27 filed 300,000 shares of common stock (par $1)^ with warrants attached entitling the holder to purchase one additional share at prices ranging from $13 to $2Q depending upon the exercise date. Price—$10 per slunre "as a speculation." Proceeds—For working capital arwt general corporate purposes. (letter of notification) (no par) on (with to be offered the basis of one derwriter—None. 4,438 shares of common for subscription by stock¬ for each 3V2 shares share oversubscription privilege). an supplied by amendment. Price—To be Proceeds—To repay bank loans new construction. Office— and accounts payable and for 50 Chuch St., New York, N. Y. Underwriter—None. it Oasis Uranium & Oil Corp., Fort Worth, Texas (letter of notification) 265,000 shares of common stock (par 50 cents). Price—$1 per share. Proceeds— June 8 For uranium and oil exploration. Office—Fortune Arms Bldg., Fort Worth, Tex. Underwriter—Standard Securi¬ ties, Inc., Salt Lake City, Utah. it Ocean Drilling & Exploration Co., New Orleans, La. June 23 filed 225,666 shares of common stock (par $1) subscription by common stockholders to be on the basis of two offered for new shares for each nine shares held. Murphy Corp., which owns 530,450 shares (52%) of the 1,015,500 common shares outstanding, intends to exercise rights to purchase at least 104,230 of the 117,877 shares to which it is entitled. Price—$8 per share. Proceeds— equipment, to acquire oil and gas interests, explora¬ tion and possibly drilling costs; and to pay all or a por¬ tion of a $705,000 mortgage note. Underwriters—Morgan Stanley & Co. (New York) and Reinholdt & Gardner (St. Louis, Mo.) on a best-efforts basis. For Old Uranium, Inc., mining, expenses. Office—300 Consoli¬ Royalty Bldg., Casper, Wyo. Underwriter—E. L. Aaron & Co., New York. June Republic Insurance Co., Greensburg, Pa. 10 filed 100,000 shares of 30 the common expenses incident to oil and Underwriter—The First Trust Co. of gas Lincoln, ' . • Powder River Uranium, Inc., Elko, Nev. June 13 (letter of notification) 10,000,000 shares of common stock (par one cent). Price—Two cents per share. Proceeds—For mining expenses. Office—522 South 5th' St., Elko, Nev. Underwriter—Lewellen-Bybee Co., Wash¬ ington, D. C. Primary Minerals Corp. (7/8) May 24 filed 1,400,000 shares of common stock (par one "cent). Price—50 cents per share. Proceeds—For acquisi¬ tion of mining equipment and other mining expenses. Office —San Francisco, Calif. Underwriter — General Investing Corp., New York. Pyramid Electric Co. May 3 filed 50,000 shares of common stock (par $1). supplied bv amendment. Proceeds — To selling stockholders. Underwriter — S. D. Fuller & Co., Price—To be New York. it Quinby & June 23 tion Co., Inc., Rochester, N. Y. filed $1,000,000 of Quinby Plans for Accumula¬ Common Stock of General Electric Co. and of $278,000 of Quinby Plans for Accumulation of Common one held; rights to expire on Aug. 1. by amendment. new share for (par $5) each share Price—To be supplied Proceeds—To diversify and premium volume. York. June 9 of by McNally increase its Underwriter—The First Boston Corp., & Co., Skokie, (letter of notification) common general III. not to exceed 3,045 shares stock (par $10) to be offered for subscription stockholders. Price—$16 corporate purposes. per share. Proceeds—For Office—8255 Central Park Underwriter—None. Ave., Skokie, 111. Rebel .mon Oil & Uranium Co., Denver, Co!o. (letter of notification) 6,000,000 shares of com(par one cent). Price—Five cents per share. stock Proceeds—For of on stock subscription by stockholders of record basis New Proceeds—For Office—Fratt Bldg., Billings, Mont. May 27 to be offered for June each). activities. Neb. Rand dated Old Un¬ Powder (River Pipeline, Inc., Billings, Mont. May 31 (letter of notification) $300,000 of 5J/2% 10-year debentures. Price—At par (in denominations of $1,000 Casper, Wyo. April 22 (letter of notification) 4,500,000 shares of com¬ mon stock (par one cent). Price—Five cents per share. • Office—Houston, Tex. . Stock of E. I. du Pont de Nemours & Co. Faithful (7/1) Inc., Philadelphia, Pa. notification) 20,000 shares of 60-cent convertible preferred stock (par $5) and 20,000 shares of common stock (par 10 cents). Price—For preferred, 7 be cent). Underwriter—None. Mortgage Associates, June to Newmex Uranium & Development Corp. May 2 (letter of notification) 8,000,000 shares of common stock. Price—At par (three cents per share). Proceeds —For mining expenses. Office—El Rancho Hotel, Gallup, N. M. Underwriter Rocky Mountain Proceeds—For Morrell on June 15 filed share. Paulsen basis; Co. panies owned by the Sinclair firm. The exchange offer conditioned upon the acceptance of the offer by at least 80% of the total number of shares of each company None. held Moab King, Inc. April 4 (letter of notification) 10,000,000 shares of 18-for-l Coal is un¬ May 17 filed 40,000 shares of capital stock (par $50) be¬ ing offered for subscription by stockholders of record June 15, 1955 on basis of two new shares for each seven shares held; rights to expire on July 15. Price—$51 per share. an stock of Alston Coal Co. on a 10-for-l basis; and 81,161 shares for all of the properties of Sinclair Mines, Inc. (other than shares of any of the above seven com¬ Under¬ dertaken to market their holdings directly. • a co. on Homestead for (par $1), writer—None, the distributing stockholders having common Socorro, N. M. Underwriter—None. on Coal of basis; 794,200 shares for stock of Sinclair Coal 44-for-l basis; 611,064 shares for stock of Key on a 54-for-l basis; 546,000 shares for stock of Broken Aro Coal Co. stock, PhoenixCampbell will receive about 800,000 shares which it pro¬ poses to offer to the public, together with the 800,000 shares received directly from New Bristol Oils. Price— market. stock (par $5) in exchange as follows: 578,739 shares for Sentry Royalty Co. on a 147-for-l basis; 216,000 713-for-l As holder of 51% of the Newton-Conroe holders Proceeds—For min¬ — shares of stock of Power Coal Co. Corp., in exchange for properties. Newton-Conroe is dis¬ tributing its stock to its stockholders in a liquidation. stock ★ Mira Uranium Corp., Socorro, N. M. (letter of notification) 105,500 shares of — Pelican Uranium Corp., Salt Lake City, Utah it Northport Water Works Co. June 21 < Oil 3,565,000 shares for stock were issued to Newton-Conroe and 800,000 shares to The Phoenix-Campbell June 23 stock (par $1). stock of one Underwriter—None. St., Siloam Springs, Ark. * Uranium & Peabody Coal Co., Chicago, III. 6,492,164 shares of common Inc., stock (par 10 cents). Price — 50 cents per share Proceeds—For oil and gas activities. Office—518 Main Underwriter—Dewitt Invest¬ Weeks. to be offered mon Wilmington. Del. 1' For mining expenses. Office 811 Boston Bldg., Denver, Colo. Underwriter—Amos C. Sudler tsz. Co., same city. (7/5-8) — May 25 filed 75,000 shares of common stock to be of¬ fered for subscription by stpckholders of record June 1 on a l-for-4 basis. Price—$2 per share. Proceeds— For capital and surplus. Office—229 West Berry St., ment Co.. Proceeds National Credit Corp., Phoenix, Ariz. May 6 filed 300,000 shares of common stock (par $1). Price—$3 per share. Proceeds—For working capital. At ★ Merritt-Chapman & Scott Corp., New York June com¬ Co. New York. Oil Corp. acquisition " ' Corp. June 6 (letter of notification) 3,000,000 shares of com¬ mon stock (par two cents). Price—10 cents per share. 13 of which Mehadrift Plantations, Inc., New York April 28 filed 70,000 shares of common stock Hornblower & Pacific (letter of notification) 266,000 shares of com¬ mon stock (par one cent). Price—$1 per share. Proceeds —For working capital, etc. Office — 780 Worcester St., Natick, Mass. Underwriter—G. F. Rothschild & Co., com¬ Bldg.j Philadelphia, Pa. Bliedung, Washington, D. C. ' • " share. Proceeds per Angeles, Calif. Underwriters—Blyth & Co., Inc. and program. Price—$1 per share. Proceeds—For payment on uranium claims and for exploration and other costs. Underwriter—M. Raymond & Co., Inc., New York. the Office—825 Western Savings Underwriter — Carl J. Fund Price—$25.50 Marine June (par 18. Los $20,000,000 of 3%% debentures due 1985. Price—To be supplied by amendment. Proceeds—To reduce short-term bank loans. 10 cent). and issued common stock of Marine Transit Co. at rate of $234 per share. The balance of $1 of a total purchase offer price of $235 per share is to be paid in cash. The stock July on finance expansion Corp., - June 6 filed Barge Lines, Inc., Joliet, III. March 31 filed $837,252 of instalment note certificates be¬ ing offered in exchange for the 3,578 shares of authorized mon To — Multi-Minerals Corp., Salt Lake City, Utah May 5 filed 1,500,000 shares of common stock (par (A. L.) of Proceeds share for each Finance (7/19-20) — by recently secured in connection with its pur¬ approximately 99.5% of the outstanding capital stock of the Waterman Steamship Corp. Underwriter— White, Weld & Co., New York. will be contingent upon acceptance offer by holders of not less than 81% of the Transit shares. Statement effective May 11. held; rights to expire new stock. mon Proceeds—To pay off bank loan which the exchange one ' . June 28 filed Price—At par (10 cents per share). Proceeds —For mining operations. Offices—206 N. Virginia St., Reno, Nev., and 214 Tenth Ave., Salt Lake City, Utah. Underwriter Elmer K. Agaard, 323 Newhouse Bldg., Salt Lake City, Utah. company chase of Mechling the basis of • Muddy River Uranium Corp. June 20 (letter of notification) 1,000,000 shares of • supplied on Underwriter—The First Boston Corp., New York. McLean Securities Corp. (7/11-15) June 8 filed 148,000 units, each to consist of one share of $3 cumulative preferred and between one-half and one share of common stock. Price —To be 23 share. per it Pacific filed shares (letter of notification) 100,000 shares of com¬ (par 10 cents). Price—$3 per share. Proceeds —For working capital, payment of notes and purchase of equipment. Office—648 Santa Fe Ave., Los Angeles, Calif. Underwriter—Aetna Securities Corp., New York. amendment. 8 of June as Manufacturing Co. stock mon Mountain Fuel June 41 mining Broadway, Denver, Colo. Co., Inc., same city. it Redding-Miller, June voting 21 (letter stock of (par operations.^ Office—636 South Underwriter—Lester Gould & Inc., Denve*-. Colo. notification) 300 shares of class shares of class $100) and 16,905 Continued on page A B 42 I 42 (3026) The Continued from page 41 ★ • * ' ★ ' ■ -i . ... 1 class A and 50 class B shares. Price $600 — one unit. per Proceeds—For planning, financing and construction and management of real estate properties. Office—931 East Sixth St., Denver, Colo. Revere Realty, etock (no par). inc., Cincinnati, Ohio Price—Par for debentures and $100 per Proceeds To purchase real estate or — interest therein. Underwriter—Stanley Cooper Co., Inc., Cincinnati, O. Royal Uranium Corp. May 26 (letter of notification) 200,000 shares of common stock (par five cents). Price—At market (total not to exceed $150,000). Proceeds—For working capital. Office —Walker Bank Bldg., Salt Lake City, Utah. Underwriter •—Whitney & Co., same city. No general offer planned. Saint Anne's Oil Production Co. May 9 (letter of notification) 20,000 shares of common stock (par $1) to be first offered to stockholders. Price —$6.25 per share. Proceeds For oil and mineral ancj — related activities,.Office—Northwood, Iowa. Underwriter —None.--*' ' General share. Offelr'is conditioned upon Regis for St. Regis obtaining 80% of outstanding General stock. Underwriter •—None. ★ San Juan Uranium Corp. (letter of notification) 89,850 shares of common stock (par one cent), represented by options issued to underwriters. Price—50 cents per share. Proceeds—To selling stockholder. Office Fidelity Bldg., Oklahoma — City, Okla. E. Underwriters—Moran & Co., Newark, N. J. W. tion and related purposes, and for operating capital an" reserve for future expansion. Office—West Memphis, Ark. Underwriter—General Investing Corp.; New York. Sovereign Uranium Gas & Oil Co. May 13 (letter of notification) 3,000,000 shares of com¬ mon stock (par one cent). Price—10 cents per share. Proceeds—For mining expenses. Office—704 Equitable Bldg., Denver, Colo. Underwriter—Daggett Securities, Inc., Newark, N. J. Stancan Uranium Corp., Toronto, Canada April 18 filed 200,000 shares of cumulative convertible preferred stock, series A (par one cent). Price—To be supplied by amendment. Proceeds—For exploration and development expenses and for general corporate pureposes. Underwriters—Gearhart & Otis, Inc. and F. H. Crerie & Co., Inc., both of New York. Stewart Oil & Gas Co. (7/5-8) March 14 filed 750,000 shares of common stock (par 100). Price—$1 per share. Proceeds—To repay bank loan, and for development of properties and other activities inci¬ dent to Texas. oil and gas operations. Office Underwriter—Barrett Herrick San Angelo, Co., Inc., New — & Whitney, Wewoka, Okla.; and through com¬ pany. Financial Chronicle June 16 (letter of notification) 352,000 shares of common (par 50 cents) to be offered for subscription by stockholders at 70 cents per share; unsubscribed shares stock to be publicly offered at $85 per 100 shares. Proceeds— working capital. Office—76 West Sixth South St., City, Utah. Underwriter—Harrison S. Brothers & Co., same city. Thursday, June . 30,1955 * • * -v.- --V /June 9 (letter of notification) 3,000,000 shares of common stock. Price—At par (10 cents per share). Proceeds— For mining expenses. Office—915 Simms Bldg., Albu¬ querque, N. M. Underwriter—Hicks, Newton & Co., Inc., Denver, Colo. Tremont Motel Corp. »;< >v \ (letter of notification) 150,000 shares of com¬ mon stock (par 10 cents). Price—$2 per share. Proceeds —For new construction, furniture and equipment ana working capital. Office — 321 Milburn Ave., Milburn, N. J. Underwriter—Berry & Co., Plainfield, N. J. June 13 Triangle Mines, Inc., Salt Lake City, Utah May 3 (letter of notification) 100,000 shares of common stock. Price—At par (50 cents per share). Proceeds— For mining operations. Office — 506 Judge Bldg., Salt Lake City, Utah. Underwriter — Leweilen-Bybee Co., Washington, D. C. Tungsten Mountain Mining Co., Fallon, Nev. June 8 149,800 shares of common (letter of notification) stock (par $1). Price—$1.50 per share. Proceeds—For mining operations. Address — P. O. Box 456, Fallon, Churchill County, Nev. Underwriter—H. P. Pratt & Co,, Seattle, Wash. i= Uranium stock mon Corp. (letter of notification) 2,000,000 shares of com¬ April 1 (7/1) i. Thunderbird Uranium Corp., Albuquerque, v ) New Mexico v ; * Turner ★ Strevell-Paterson Finance Co. 2V2 (par Price—10 cents per share. cents). mining operations. Office —130 Social Hall Avenue, Salt Lake City, Utah. Underwriter—Mel¬ vin G. Flegal & Co., same city. Proceeds For — For Salt Lake June 23 and Racing Corp. (7/5-8) ~ 1,250,000 shares of common estocfr (par Price—$1 per share. Proceeds—For construc¬ filed York. ★ St. Regis Paper Co., New York ; June 28 filed 329,327 shares of common stock (par $5) to be offered in exchange for common stock of General Container Corp. on basis of 2% shares of St. one 10 10 cents). Underwriter—None. March 8 filed $1,000,000 of 5^»% cumulative convertible debentures due Jan. 1, 1980 and 25,000 shares of common Bhare for stock. Southland June non-voting stock (par $10) to be offered in units of bommercial&nd Two Jay Uranium Co., Salt Lake City, Utah 4 May 16 (letter of notification) 3,000,000 shares of com* stock mon ★ Sun Feb. 16 Hotel, Inc., Las Vegas, Nev. (as amended) 3,750,000 shares of stock (par one-cent). Price—$2.50 per share. mon (par three cents). Price—10 cents per share. Proceeds—For filed mining expenses. Office—32 Exchange Lake City, Utah. Underwriter — Western com¬ Place, Salt Pro¬ States Investment ceeds—To construct hotel and for working capital. Un¬ derwriters—Golden-Dersch & Co., Inc., New York; and Coombs & Co. of Las Vegas, Inc., Las Vegas, Nev. Ucon Co., Tulsa, Okla. Uranium Corp., 'Salt Lake City, Utah (letter of -notification) 5,000,010 shares of comr stock (par one cent).-Price—Five cents per share# June 2 mon Santa Fe Uranium & Oil Co., Inc. May 26 (letter of notification) 2,959,500 shares of com¬ mon stock (par one cent). Price — 10 cents per share. Proceeds—For mining operations. Office—416 Indepen¬ Bldg., Colorado Springs, Colo. Underwriter—Co¬ lumbia Securities Co., Denver, Colo. Sunshine Park Racing Association, Inc. (Fla.) 18 filed $700,000 of 6% convertible sinking fund debentures due 1966 and 70,000 shares of common stock Proceeds—For Nov. (par 10 cents). Price — 100% and accrued interest for debentures and $2 per share for stock. Proceeds—To repay bank loans, for new construction and for U-Kan Uranium & Oil Co., Salt Lake City, Utah May 5 (letter of notification) 260,000 shares of common, stock (par 10 cents). Price—$1 per share. Proceeds— For mining expenses. Office — Judge Bldg., Salt Lake City, Utah. Underwriter — Northern Securities, Inc., Seattle, Wash. dence Saxon Uranium Mines capital. Ltd., Toronto, Canada April 29 filed 1,500,000 shares of common stock (par $1). cents per share. Proceeds—For exploration working capital; also to repay advances and other liabilities. Underwriter Degaetano Securities Corp., Price—40 and — Underwriter—Gulf-Atlantic, Inc., Super-Seal Piston Ring Corp., Brownwood, Tex. (letter of notification) 575,000 shares of common stock (par 10 cents). Price—50 cents per share. Proceeds June 3 —For Belle New York. ★ Sheraton Corp. of America, Boston, Mass. 24 filed $1,380,000 of participations in the Em¬ ployees Savings Plan for the employees of this corpora¬ machinery and working capital. Office—1812 Plain Ave., Browmvood, Texas. Underwriter— Great Southwest Securities participating subsidiary companies. Shoni Corp., Riverton, Wyo. April 21 (letter of notification) 2,000,000 shares of stock mon Proceeds (par one cent). Price For mining expenses. — Riverton, Wyo. Denver, Colo. Underwriter — 15 cents Address Melvin — F. stock (par one cent). Price—25 cents Proceeds—For mining expenses. Office 6 — 489, Schroeder, per com¬ share. Kirby St., Colo. ★ Siboney Development & Exploration Co., Tulsa, Okla. June 27 filed 2,000,000 shares of common stock (par 10 cents). Price—To be supplied by amendment. Proceeds —For geological and geophysical surveys and for drilling of exploratory wells. & Co., St. Louis, Mo. Underwriter—Dempsey-Tegeler (7/11-12) pur¬ Underwriter—William R. Staats & Co., Los An¬ geles, Calif. ★ Silver Creek Precision March 31 filed $600,000 of (7/5) 10-year convertible 6% de¬ bentures due June 30, 1965. Price—At 100% of principal (in denominations of $100 each). Proceeds— For working capital and general corporate purposes. Office—Silver Creek, N. Y. vesting Corp., New York. Underwriter—General In¬ ★ Silvaire Aircraft & Uranium Co. (letter of notification) 3,000,000 shares of com¬ (par one cent). Price—10 cents per share). Proceeds—For mining operations. Office—Fort Collins, Colo. June 17 stock Underwriter—Carroll, Kirchner & Denver, Colo. Sonoma Quicksilver Mines, Inc. April 27 filed 800,000 shares of capital cents), of which 80,000 shares value at Price—To be fixed the time of are on to be Jaquith, Inc., ever is —Norman R. lower. — stock (par 10 initially offered the basis of the market their — ★ Southern Colorado Power Co. (7/27) 27 filed 20,000 shares of 4.72% cumulative Proceeds—For mining expenses. National Bldg., Denver, Colo. ter & Co., same address. Office 407 — Denver Underwriter—Floyd Kos- Texboard, Inc., Dallas, Texas 17 filed $1,500,000 of 6% series A debentures serially from Feb. 1, 1957 to Aug. 1, 1961, and pre¬ ferred stock (par $50). Price—To be supplied by amend¬ Proceeds—For payment of bank loans. Under¬ writer—Stone & Webster Securities ment. Corp., Paine, Web¬ ber, Jackson & Curtis, and six other firms. June 22 $1,000,000 serially from 1, 1962 to Aug. 1, 1966. Price—To be supplied by amendment. Proceds—To construct and operate a manu¬ facturing plant near Orange, Tex., for the purpose of of 6% series B convertible debentures due Feb. manufacturing insulation building products. writer—Emerson Cook Co., Palm Beach, Fla. Under¬ Therm-O-Disc, Inc., Mansfield, Ohio June 7 filed 89,600 shares of (par $1). Price—To be supplied by amendment. Proceeds—To selling stockholders. Underwriter McDonald & Co., Cleveland, Ohio. — 9 Corporation, Washington, D. (letter of notification) 507 and common preferred stock; and $50,000 of 5% unsecured debentures. Price—For stock, $500 per unit; and for debentures, at par (in denomina¬ tions of $2,500 each). Proceeds—To operate a banquet hall. Office—954 Washington Bldg., Washington 5, D. C. Thorofare Markets, 22 filed Inc., Murrysville, Pa. $2,000,000 of sinking fund subordinated debentures, series A (convertible 1962), due amendment. sion and gate & July on or 1, 1975. Price — To Proceeds—To retire note, working capital. before June 30, be by and amendment) additional an 200,000 Accumulative number of underlying shares of Fund; and $3,000,000 of Periodic Investment Plans with insurance and of underlying shares of indeterminate- an United Accumulative Fund. " . United Gas Corp. -■ -• •• - * • • y. May 17 filed 525,036 shares of common stock (par $10): bMrig Offered by Electric Bond & Share Co. for subscrip¬ tion by its common stockholders of-reeord the basis of one share of United new as 10 shares of Bond and Share stock held; expire on July Price 1. •— To-Electric Bond & Share holder. $28 per of June 8 Gas stock for share. rights to Proceeds — Co., who is the selling stock¬ Underwriter—None. ^Uranium Prince Mining Co., Wallace, Ida. April 18 (letter of notification) 1,750,000 shares of com¬ mon stock. Price — 10 cents per share. Proceeds—For operations. Address — Box 709, Wallace, Ida.. Underwriter—Wallace Brokerage Co., same city. ^Uranium Properties, Ltd., Virginia City, Nev. June 13 filed $600,000 of Grubstake Loans to be offered inr amounts of $25 or multiple thereof. Proceeds—75% tu be for invested equipment penses. in U. S. Savings bonds and the balance and exploration and development e x-s Underwriter—None. ;Utah Southern Uranium Co., Las Vegas, Nev. (letter of notification) 3,000,000 shares of capital stock. Price—At par (10 cents per share). Proceeds— For mining expenses. Office—210 N. Third St., Las Vegas, Nev. Underwriter—Lester L. LaFortune, same city. Vactron Corp. of and 338 shares of common to be offered in units of three shares of preferred and two shares of Underwriter—None. (by undeterminate an United C. shares filed June 6 stock common unit. Fund; 1,000,000 shares of United Continental Fund; $50,000,000 in Periodic Investment Plans without insurance mfriing due per ★ United Funds, Inc., Kansas City, Mo. each Co., Denver, Colo.^ (letter of notification) 5,960,000 shares of com¬ -stock (par one cent). Price—Five cents per share. three of shares of United Income Fund; 1,000,000 shares of United Accumulative Fund; 1,000,000 shares of United Scientific oq Texas Western Oil & Uranium units preferred and 10 common Proceeds—For purchase of property, construction of hotel, athletic and health facil¬ ities, and working capital. Underwriter—None, but sales will be made through agents. ' ; —Dillon, Read & Co. Inc., New York. June June in number petroleum products. Underwriter Inc., Hollywood, Calif. Price—$400 Texas Eastern Transmission Corp. (7/13) June 21 filed 160,000 shares of cumulative preferred stock (par $100). Price—To be supplied by amendment. Proceeds—To repay borrowings made in connection with reconversion of a portion of the Little Big Inch pipeline to the transportation of ★ 1320 Whittall, Ltd., Vancouver, B. C., Canada. Price—$30 per share. Proceeds—To increase working capital for agency expansion. Office 1409 Magnolia Ave., Knoxville, Tenn. Underwriter—None. June first sale or $1 per share, Purpose To increase facilities and invest in other quicksilver properties: and for work¬ ing capital. Office—San Francisco, Calif. Underwriter which city. Jan. Corp. amount to public. same ★ Tennessee Life & Service Insurance Society June 20 (letter of notification) 9,200 shares of common stock (par $5) to be offered for subscription by stock¬ mon June 20 filed 225,000 shares of common stock (par $1). Price—To be supplied by amendment. Proceeds—To re¬ pay current indebtedness and for general corporate mon Jaquith, Inc., June 15 Siegler Corp., Centralia, III. poses. com¬ stock (par one cent). Price—Five cents per share. Proceeds—For mining operations. OfficeT-1890 S. Pearl St., Denver, Colo. Underwriter Carroll, Kirchner & holders. Moab, Utah. Underwriter—Skyline Securities Inc., Den¬ ver, Co., Denver, Colo. May 11 (letter of notification) 6,000,000 shares of — Box ★ Shumway Uranium, Inc., Moab, Utah June 20 (letter of notification) 1,200,000 shares of mon com¬ share. per — Union Club, March 1 filed 30,000 shares of preferred stock (par $50) and 100,000 shares of common stock (par $lo; to be shares. Tasha Oil & Uranium mon Uranium VASJ offered Co. June tion and working Tampa, Fla. mining costs. Office—406 Judge Build¬ ing, Salt Lake City, Utah. Underwriter—Empire Secu-« rities Corp., Las Vegas, Nev. supplied for expan¬ Underwriter—Hulme, AppleHumphrey, Inc., Pittsburgh, Pa. May mon 13 (letter of notification) stock. 300,000 shares of com-/ Price—At par ($1 per share). Proceeds—To manufacture, process, rebulid and market television pic¬ tures tubes, etc. Underwriter — Zone Investments Co., Fort Worth, Texas. • Vanadium * Uranium Corp. (7/6-7) 550,000 shares of capital stock ( par 10 cents), of which 70,000 shares are for the account of sell- i ing stockholders and 480,000 shares for the company's account (each share being accompanied by a warrant April 18 Queen filed to purchase one-half share before Jan. 3, 1957. Price— per share. Proceeds—To repay no'es and for ex-, ploration and development expenses. Office — Grand. Junction, Colo. Underwriter—Van Alstyne, Noel & Co.,; $2.50 New York. * Volume 181 Number 5442 .. The Commercial and Financial Chronicle . 43 (3027) Vanura Uranium, Inc., Salt Lake City, Utah June 16 (letter of mon stock (par notification) 3,000,000 shares one cent). Price — 10 of com¬ cents per share. Proceeds For mining expenses. Underwriter 1. J. Schenin & Co., New York. Name Change—The company was formerly known as San Miguel Uranium, Inc. ★ Vas Uranium & Drilling Co., Monticello, Utah June 20 (letter of notification) 2,000,000 shares of com¬ mon stock. Price—At par (10 cents per share). Proceeds — — —For mining operations. rities Inc., Denver,-Colo. Underwriter—Skyline Secu¬ 10 (letter of notification) 5,700 shares common stock of — First National Bank of Fort Worth, Texas May 16 it was announced Bank plans to offer to its stockholders the right to subscribe for 100,000 additional shares of capital stock (par $10) on the basis of one new June share for each 5% shares held. Price—$23.50 Proceeds—To increase capital and surplus. 3 (letter of notification) 5,571 shares of common stock (par $20) to be offered for subscription by stock¬ holders. Price—$45 per share. Proceeds—To pay off Office West Market 127 — Wabash Uranium Corp., Moab, Utah notification) 10,000,000 shares of capi¬ Price—At par (three cents per share). Pro¬ June 10 (letter of York Oil & Uranium Co. June 3 (letter of notification) tal stock. —For Price—At par mining oil and share. was announced company may issue and sell between $10,000,000 and $12,000,000 of first mortgage bonds. Underwriters—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; class A per per Florida Power Corp. April 14 it St., York, Pa. Underwriter—N one. (par $1). Price—At market (estimated at share). Proceeds—To increase working capital. Office—400 Main St., Waltham, Mass. Underwriter— May & Gannon, Inc., Boston, Mass. $8.75 crease capital and surplus. Underwriter None, but Transamerica Corp., the parent, will purchase any un¬ subscribed shares. if York County Gas Co., York, Pa. bank loans. Vectron, Inc., Waltham, Mass. June •Wyoming Uranium Corp., Salt Lake City, Utah April 22 (letter of notification) 833,333 shares of com¬ mon stock (par one cent). Price—31/2 cents per share. Proceeds—For mining expenses. Office—522 Felt Bldg., Salt Lake City, Utah. Underwriter—James E. Reed & Co., Salt Lake City, Utah; and Coombs & Co., of Wash¬ ington, D. C. 10,000,000 shares of capi¬ Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬ & Beane (jointly); Lehman Brothers and Blyth & Co., Inc. (jointly); Glore. Forgan & Co.; and The First (two cents per share). Proceeds activities. Address—P. O. Box ner 348, Newcastle, Wyo. Underwriter—Empire Securities Corp., Salt Lake City, Utah. Boston Corp. Offering—Expected late in 1955 early or 1956. tal stock. Ford ceeds—For mining expenses. Underwriter—Moab Bro¬ kerage Co. and National Securities, Inc., 368 South State St., Salt Lake City, Utah. if Warren Christmas June 20 (letter of stock (par for rent of common $1), of which 150,200 shares are to be offered par, and 146,800 shares to be offered for <jebts for cash at and Trees, Inc. notification) 297,000 shares application two for in advance and assignment of Letters Patent. Proceeds 4-^ For years U. S. manufacture and sale of artificial Christmas trees. Office —261 West Base Line, San Bernardino, Calif. Under¬ writer—Ernest W. White, 1364 Conejo Drive, Warwick Hotel June 22 filed interest in Proceeds Associates, New same city. # York ■ ' $4,250,000 of participations in partnership in minimum amount of $10,000. To Associates — pay part of purchase price of Warwick Hotel, Philadelphia, Pa., and related writer—None. Washington Natural expenses. Under¬ Gas Co. (7/5-8) 238,632 shares of com¬ (par one cent), of which 192,011 shares are for account of company and 46,621 shards for accptmt of May 24 (letter of notification) stock mon selling stockholder. Price—$1.25 To retire indebtedness and for per share. Proceeds— working capital. Under¬ writer—Barrett Herrick & Co., Inc., New York.J--; ' Washington Plywood Co., Inc., Lowell, Wash. ! June 13 filed 296 shares of common stock (par $5,000). Proceeds—To purchase plywood mill of Walton Plywood Co., Inc., etc. Underwriter—Albert Walter Braedt. Products Co., Chicago, III. (letter of notification) 3,500 shares of common stock (par $1). Trice—At market. Proceeds—To a sell¬ ing stockholder. Underwriter—A. C. Allyn & Co., Inc., Weco June 3 Chicago, 111. (7/19) — construction program and to repay bank loans. writer—Blyth & Co., Inc., San Francisco Western and New York. Inn, Fort Worth, Texas 200,000 shares of capital stock (no par) per share. Proceeds—Together with other funds, to construct, furnish and equip hotel to be built Price—$5 between Dallas and Fort Worth, Texas. Schwanz & Co., Inc., Aurora, 111. Western Nebraska Oil & Underwriter— Uranium Co., Inc. (7/25-29) April 4 (letter of notification) 200,000 shares of common stock (par 10 cents). Price—$1.50 per share. Proceeds— For exploration and development costs and working capital. Office—924 Broadway, Denver, Colo. Under¬ writer—Israel & Co., New York. , if Western States Mineral Venture, Denver, Colo. June 17 (letter of notification) 20 participating units of $5,000 each. Price—At face value. Proceeds—For mining operations. Office—c/o Minerals Mining & Exploration or P. O. Box 143, Denver, Colo. Inc., 711 Majestic Bldg., Underwriter—None. White Horse June 9 stock Uranium, Inc., Salt Lake City, Utah (letter of notification) 2,900,000 shares of capital (par 2Vz cents). Price—10 cents per share. Pro¬ mining expenses. Office—1030 South Sixth St., Salt Lake City, Utah. Underwriter—J. W. ceeds—For West Hicks & Co., Inc., Denver, Colo. Wicker-Baldwin Uranium Mining Co. May 26 (letter of.notification) 900,000 shares of common stock. Price—At par (25 cents per share). Proceeds— For mining expenses. Office—616 Sixth St., Rapid City, S. D. Underwriter—Driscoll-Hanson, Inc., Wilnxa K. Uranium same city. Mining Corp. May 31 (letter of notification) 9,990,000 shares of com¬ stock (par one cent). Price—Two cents per share. mon Proceeds—For mining expenses. Office—Grand Junc¬ tion, Colo. Underwriter—Columbia Securities Co., Inc., Denver, Colo. • Wright Line, Ire., Worcester, Mass. (7/12) June 17 filed 110,000 shares of class B common stock (par $1), cf which 50,000 shares are to be offered for the company and 50,000 shares by certain selling stockhold¬ ers. Frice—To be To finance supplied by amendment. Proceeds— additions to factory building and for work¬ ing capital and general corporate purposes. Underwriter —Paine, Webber, Jackson & Curtis, Boston and New York. if General Minerals Corp. Proceeds—For mining expenses. Salt Lake Office—429 Ness Bldg., City, Utah. Underwriter Securities, Las Vegas, Nev. — Rocky Mountain was tration of 1,200,000 shares of its Dallas, Tex.; and Laird & Co., Wilmington, Del. May $10,000,000 Gulf States Utilities Co. new con¬ Underwriter—To be determined by competi¬ tive bidding. Probable bidders: Lehman Brothers; Blyth & competitive bidding. (1) For bonds, probable bidders may be Halsey, Stuart & Co. Inc.; Blair & Co., Incorporated; White, Weld & Co.; Blyth & Co., Inc. (2) For any common stock, bidders may include: it 19 Uranium Mines announced was plans issue debenture a a issue of several million expire concentrating mill, mining equipment Underwriter—James Dec. 31, W. F. Wyman, President, stated that company plans to issue and sell some additional common stock $10 (probably to stockholders) in the latter part of Proceeds—For construction program. Underwriter —May be determined by competitive bidding. Probable par 1955. bidders: The First Boston Corp. and Coffin & Burr, Inc. ' (jointly); Harriman Ripley & Co. Inc.; Blvth & Co., Inc. Kidder, Peabody & Co. (jointly). Meeting—Stock¬ on May 11 voted to increase the authorized and 3,250,000 to 3,500,000 shares. Of¬ (A. B.) Stifel, Nicolaus & Co., Inc., St. Louis, Mo. Chicago, Milwaukee, St. Paul & Pacific RR. May 10 it was announced stockholders will vote July 13 on approving the creation of an issue of $60,000,000 5% income debentures, series A, to be offered in ex¬ change for outstanding preferred stock, series A, .about for par basis; offer to expire Sept. 1, on 1955. Commonwealth Edison Co. Jan. 24, Willis Gale, Chairman, announced it should be Fall before the company undertakes its next financing. Proceeds—For new construction, which, it is estimated, will cost about $125,000,0000 in 1955. Underwriters— For last equity financing were The First Boston Corp. and Glore, Forgan & Co. Consolidated Edison Co. of New York, Inc. 14 it was announced company expects to sell from $40,000,000 to $50,000,000 bonds some time during June Proceeds—For construction program. Underwriter—To be determined by competitive bidding. year. Probable bidders: Halsey, Stuart & Co. Stanley & Co.; The First Boston Corp. Inc.; Morgan Consolidated Uranium Mines, Inc. July 23, 1954, stockholders authorized issuance and sale of not to exceed $6,000,000 convertible debenture bonds in connection with the acquisition of Uranium Mines of America, Inc. stock. expected early in Public offering of $2,000,000 bonds 1955. Underwriter — Tellier & Co., Jersey City, N. J. Continental Aviation & Engineering Co. June 13 it was reported company plans sale $2,000,000 convertible debentures. Alstyne, Noel & Co., New York. National June 17 it was the shares-held. of in near Underwriter basis that this Bank plans to offer 160,000 additional shares of capital of Price—$30 one per new share share. Price—$22 per share. Proceeds— Unsub¬ a proposal increasing the I International Oil May 23 it for Proceeds was time in Metals Corp., Seattle, Wash. reported company may do some financing the future. William each — three To in¬ D. Bost of Whitcomb Co., New York, is Chairman of the Board. Isthmus March 30 of & an Sulphur Co. it was (Texas) reported early registration is planned undertermined number of writers—L. D. Sherman common shares. Under¬ & Co., New York, and Garrett & Co., Dallas, Tex.; and others. Jersey Central Power & Light Co. was reported company plans to sell $5,000,000 Feb.,21 it of preferred'stock. Proceeds—For construction program. Underwriter—To be determined by competitive bidding. Probable bidders: The First Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane and White, Weld & Co. (joint¬ ly); Glore, Forgan & Co. Offering — Expected before July 1. Keystone Wholesale Jan. 27 it date to Hardware Co., Atlanta, Ga« stated that the company plans at a later offer additional shares for sale nationally. An was offering of 16,666 shares of common stock was recently made to residents of Georgia only at $3 per share. Office—517 Stephens St.. S.W., Atlanta. Ga. Lithium June file a 9 it Developments, Inc., Cleveland, Ohio was announced registration that statement plans soon to SEC covering a company with the proposed issue of 600,000 shares of common stock. ceeds—For general corporate purposes. Pro¬ Underwriter- George A. Searight, New York, will head group. Long Island Lighting Co. April 23 it was announced company plans to sell an issue of $15,000,000 first mortgage bonds, series H, due 1985. Proceeds—For construction program. Under¬ writer—To be determined by competitive bidding. Prbbable bidders—Halsey, Stuart & Co. Inc.; The First Bos¬ ton Corp. and Blyth & Co., Inc. (jointly); W. C. Langley & Co.; Smith, Barney & Co.; Baxter, Williams & Co. Offering—Expected late in 1955. Lucky Stores, Inc. April 20 stockholders approved Arizona announced its stockholders on Bank 26. ers. & Co., Centralia, Mo. was reported company may offer next month 50,000 addition*: 1 shares of common stock. Underwriter— current Sept. on International Bank, Washington, D. C. April 25 it was announced company, in addition to plac¬ ing privately an issue of $500,000 convertible deben¬ tures, will offer additional convertible debentures to shareholders, the latter probably sometime in the Au¬ tumn of this year. Office — 726 Jackson Place, N. W., Washington, D. C. Business—Industrial merchant bank¬ June 13 it on a par and (200,000 of such increased shares shall be (new) serial preferred stock, $50 par value and 1,000,000 shares shall some fering—Probably in September. Chance (9/5) plans to issue company authorized capital stock from 3,000,000 to 4,200,000 shares holders from reported common stock, $1 par value); also waiving of pre¬ emptive rights to such increased shares. Central Maine Power Co. stock was be Anthony Securities Corp., New York. common it Hupp Corp. May 13 stockholders approved and dollars. 20 For construction program. Underwriter—None. scribed shares to be sold to highest bidder. Corp. company and for underground development. stock Probable bidders: Halsey, Stuart & Co. Inc.; Brothers; Merrill Lynch, Pierce, Fenner & White, Weld & Co. (jointly); Salomon Bros. sell 14,817 additional shares of common stock (par $15) to common stockholders of record Sept. 5 on the basis of one new share for each 25 shares held; rights to Loeb, Rhoades & Co. and Bear, Stearns & Co. Kidder, Peabody & Co.; Lehman Brothers; Lynch, Pierce, Fenner & Beane. Cavendish to sell Hutzler and Union Securities June (jointly); First and Housatonic Public Service Corp. determined by —Van issue may Corp. (jointly); Kuhn, and A. C. Allyn & Co., Inc. (jointly); Lee Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬ ly); Stone & Webster Securities Corp. Registration—Ex¬ pected in June. Bids—Expected in July. postponed to fourth quarter of 1955. Proceeds—To retire (estimated at $10,000,000). Underwriter—To the company Loeb & Co. bank loans Aug. 1 reported first mortgage bonds if market conditions Underwriter—To be determined by competitive Lehman California Electric Power Co. June 7 it was announced permanent financing had been of was Beane and October. April it bidding. Co., Inc. and Smith, Barney & Co. (jointly); Equitable Securities Corp. and Union Securities Corp. (jointly); White, Weld & Co. Bids—Probably in September or Carl M. 16 permit. & Merrill reported that company plans early regis¬ common stock. Under¬ writers—Sanders & Newsom and Rauscher, Pierce & Co., both of struction. be ' June 20 it $100). Proceeds—To repay bank loans and for — part & future of Wyco Uranium, lnc., Salt Lake City, Utah April 7 (letter of notification) 2,900,000 shares of com¬ mon stock (oar one cent). Price — 10 cents oer share. 1955, if then." Light Co. May 27 it was reported company plans to issue and sell about 80,000 shares of cumulative preferred stock (par Under¬ Hills filed be around of debentures in proportion to his holdings of stock (probably on the basis of $100 of debentures for each eight shares of stock held). Underwriter—None. Proceeds—For 150,000 shares of common stock (par $10). Price—To be supplied by amendment. Proceeds For • shares will be made to the public. Price—Expected $60 per share. Proceeds To the Ford Foundation. Offering—Probably not until ''latter to the Power reported that following a probable 10an offering of approximately 4,000,000 was split, new American Telephone & Telegraph Co. April 20 stockholders approved a new issue of not to exceed $650,000,000 convertible debentures. When is¬ sued, each stockholder would receive rights to purchase sale June 27 filed 31 for-1 stock ... if West Coast Telephone Co. Jan. Prospective Offerings Arkansas Motor Co., Detroit, Mich. March 15 it the authorized common stock shares to 2,000,000 shares standing). It was / a proposal to increase (par $1.25) from 1,000,000 (there are 804,063 shares out¬ reported previously that the company Continued on page 44 44 | (3028) Continued The Commercial and Financial Chronicle jrom page Harriman 43 proposed to raise approximately $1,500,000 through the gale of 150,000 shares. However, no immediate financing is planned. Underwriter—Probably Blair & Co. Incor¬ porated, New York. Maine Central given up Stuart & Co. Inc.; Kidder, Peabody & Co.; W. C. Langley & Co.; Coffin & Burr, Inc.; The First Boston Corp.; Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co., Inc.; Glore, Forgan & Co. - Majestic Auto Club, Inc. Aug. 25 it was announced company plans to offer 500,OOu snares (par five cents) to tne motorist and general public shortly after completion of the current offering of iuu,0uu snares to service station owners and operators. Office—Room 717, 141 Broadway, New York 8, N. Y. Maremont Automotive it May 23 tion reported was Products, Inc. plans early registra¬ States Telephone Co. of Illinois May 19 it was reported company plans to issue and sell additional common stock. On May 11, the authorized issue was increased to 450,000 shares from 350,000 shares. Underwriter—Central Republic Co., Inc., Chicago, 111. Mountain States May 21 it its additional common stock —None. the authorized $20,000,000. limit of indebtedness from Under¬ Lynch, Pierce, Fenner & Beane, York, handled preferred stock financing in 1942. New New Reynolds & Co., New Orleans it was issue Public announced first some Co.; Blair Equitable (jointly); (jointly); New Service that Inc. bonds mortgage due 1985. *>*++ 17, be —For • announced was cm ueDeiui»ies ciue uu-^cai 1991. Proceeds construction program. Underwriter—To be de¬ competitive bidding. Probable bidders: Stuart & Co. Inc.; Morgan Stanley & Co.; by Corp. (jointly). Registration—Planned for the of July. Bids—Expected to be opened Aug. 16. Pennsylvania Power & Light Co. April 19, Charles E. Oakes, President, five announced years. Securities in the period. Underwriters— Boston March 29 for ments it was 1955 announced Co. (Minn.) that capital new will approximate $31,000,000. Present contemplate these funds will be obtained tem¬ porarily from short-term bank loans to be repaid from proceeds of the sale of additional bonds late in 1955 oi Underwriter—To be determined by competi¬ bidding. Probable bidders: Halsey, Stuart & Co early 1956. Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬ ly); Merrill Lynch, Pierce. Fenner & Beane, Kidder. Peabody & Co. and White, Weld & Co. (jointly); Equit¬ able Securities Corp. and Union Securities Corp. (joint¬ ly); Smith, Barney & Co.: Lehman Brothers and Riter & Co. (jointly); Glore, Forgan & Co. ' Nitro-Chemicals, Ltd., Alberta, Can. March 4 company plans to issue and sell publiply deben¬ tures and common stock to finance its proposed chemical project. Underwriter—Eastman, Ohio Power Co. June 20 it Dillon & Co., New York (9/20) was reported company plans to issue and sell 60,000 shares of cumulative preferred stock (par $100), Proceeds—For construction program. determined Underwriter—To by competitive bidding. Probable bid¬ Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.; Harriman Ripley & Co., Inc. and Stone & ders: Web¬ ster Securities Corp. (jointly): The First Boston Corp.; Union Securities Corp. and Salomon Bros. & Hutzler (jointly). Registration—Planned for Aug. 17 Bids Expected to be received up to 11 a.m. (EDT) on'sept. 20. (9/20) June 20 it was. reported company plans to issue and sell 522,001000 of first mortgage bonds due 1985. Proceeds— Ohio Power Co. retire bank Unleruriter—To Probable loans be and for construction determined bidders: not conditions Stuart & St. May the of Co. Inc.; bonds. Under¬ bidders: Probable Sterling Precision of common Under¬ Instrument Corp. authorized (par $10), 300,000 shares (to be convertible into common) to be publicly offered. Proceeds—For working capi¬ Office—Buffalo, N. Y. of which are tal. Texas Gas Transmission Co. ■ March 15 it reported company plans to sell addi¬ was tional first mortgage bonds later to finance cost of new construction, which is estimated at about $17,500,000. Underwriter—Dillon, Read & Co. Inc., New York. Texas June National 16 it Bank, Houston, Texas Bank plans this announced was offer to to its stockholders 50,000 additional shares of capital stock (par $20). Price—$40 per share. Proceeds—To increase capital and surplus. Unexcelled Chemical Corp. May 25 stockholders approved creation of 100,000 shares of 5% non-voting preferred stock (par $25) and in¬ creased authorized common stock from 500,000 shares to 1,000,000 shares. : p?. f Union Jan. 24 Electric Co. of Missouri it reported company expects to sell about first mortgage bonds late in 1955. was $30,000,000 30-year repay bank loans and for new construc¬ Underwriter — To be determined by competitive tion. bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and Union Securities Corp. (jointly);. The First Boston Corp.; Lehman Brothers and Bear, Stearns & Co. (jointly); White, Weld & Co. and Shields & Co. (jointly). Utah Power & Light Co. March 28 Halsey, Morgan Stanley & Co. was reported (9/13) ( company — Utah Power & Light Co. March 28 it (9/13) reported company plans public sale of 177,500 shares of common stock. Proceeds — For con¬ was Underwriter—To be determined by bidding. Probable bidders: Lehman Bro¬ program. competitive thers; Union Securities Corp. and Smith, Barney & Co. (jointly); Kidder, Peabody & Co. and Merrin Lynch, Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; The First Boston Corp. Bids—To be received on Sept. 13. v Warren it June 21 avote It is Brothers Co., Cambridge, Mass. stockholders on July 19 will plan to refinance the outstanding 40,665 $2.50 cumulative preferred stock (par $50). announced was upon shares stockholders it plans to issue and sell $15,000,000 o£ first mortgage bonds due 1985. Pro¬ ceeds To repay bank loans and for construction pro¬ gram. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Union Securities Corp. and Smith, Barney & Co. (joint¬ ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler; White, Weld & Co. and Stone & Webster Securities Corp, (jointly); The First Boston Corp.; Lehman Brothers and Bear, Stearns & Co. (jointly). Bids — To be received Sept. 13. struction Louis-San Francisco Ry. 10 shares 60,000 June 6 the stockholders voted to approve an issue of 500,000 shares of first preferred stock exceed time within the next 12 months. any a of to $25,000,000 is planned to sell initially $19,500,000 principal amount to mature in 40-years. Proceeds — For property addi¬ to issue not more than $2,503,000 of notes, bonds or debentures which may be in whole or in part convertible into common stock at not less than $50 per share. Proceeds—To retire preferred stock, to pay Halsey, by approved an additional issue ot of first mortgage bonds, of which it up ■ and improvements. Underwriter—To be deter¬ by competitive bidding. Probable bidders: Hal¬ sey, Stuart & Co. Inc.; The First Boston Corp.; Union Securities Corp.; Blyth & Co., Inc. and Harriman Ripley mined & Co. Inc. San Sherwin, President, will need recently reported the that The financing will probably take the form of a issue or preferred stock.' Underwriters—(1) For preferred stock, Blyth & Co., Inc., San Francisco, Calif. (2) For bonds, to be determined by competitive bidding. gram. bond Bros. & Corp. bidders: Halsey, Stuart & Co. Inc.; Salomon Blyth & Co., Inc.; Union Securities Hutzler; Merrill Lynch, Pierce, Fenner & Lehman Brothers; The First Boston White, Weld & Co. and Shields & Co. (jointly). and Feb. 28 it emDtion last of Southern *ell 30 to itock it the (11'9 bidding. Bids has ex- received & Co on Inc.: Secu¬ 500.000 plans to company he additional determined ling. Probable bidders & Stearns Co. & shares & Co.. of common Co. and by competitive bid- The First Carl M (jointly); Dean Boston Corp., LadenLoeb Rhoades & Co. and Blyth Witter & & Co. Securities Com. and Equitable Securities Lehman it was announced that some Brothers: Morgan Stanley Co., Inc.. Bear (jointly); Union Corp (jointly): & Co.; Kidder Pea¬ body & Co;, and Merrill Lynch. Pierce, Fenner & Beane Bids—Tentatively scheduled for Nov fl. Rerlrtratfrni— Inc.; >Iot expected until Oct. consideration being Is additional shares of com¬ stock through an offering to stockholders. Stock¬ April 13 voted to approve a 4-for-l split of the company's stock and the issuance of an additional 1,580,000 new shares, part of which are expected to be mon holders as been aforesaid, but no definite plam financing formulated. Underwriters—Expected to in¬ Kuhn, Loeb & Co.; Lehman Brothers; and Clark, & Co. Westpan Hydrocarbon Co. March 2 it was announced Sinclair Oil Corp; has agreed with the SEC to divest itself "of its investment ot 384,380 shares of Westpan stock Underwriter—Union (52.8%). Securities Corp., New York, underwrote recent sale of Sinclair's holdings of Colorado Interstate Gas Co. White, Weld & Co., New York, may be included among the • 12 Worcester Ccunty Electric Co. Issue and (par $5). Proceeds—To repay bank loans and for in additional stock of subsidiary companies Wertheim 15 clude 'nvestment Underwriter-^To Offering—Expected in July. t announced public burg. Thalman reported bidders. Co. was March have Blyth & Co., Inc.; White, Weld & Co. and Union rities Corp. (jointly): Lehman Brothers. Dec was given to the issuance of plans to issue and sell from Halsey, Stuart were capital. Ltd. Co. company competitive working Co., Western Union Telegraph Co. Offer¬ mortgage bonds. Application with, California P. U Commission for from it New York. offered first sale of bonds for and company now plans to issue $20,000,000 of securities, probably in units of notes and stock. Bonds are expected to bo placed privately. Underwriter—Eastman, Dillon & Co., Dodge Gas reported was filed been California loan and sell publicly about Corp.; ing—Expected in September. $40,000,000 $225,000 a April 25 Beane (jointly); Southern off Westcoast Transmission minimum of $11,000,000 new capital help finance its current $20,000,000 construction pro¬ Probable proposed a bid- program. competitive Stuart & Co. to (jointly). Diego Gas & Electric Co. D. company require¬ plans Northwest would the future, the directors should deem it in the best in¬ terests of the company to issue bonds, the board will determine the amount of the issue and the terms and E. Power This stockholders approved a proposal increasing the authorized indebtedness of the company to $125,000,000. Funded debt at Dec. 31, 1954 totaled $84,077,350. If, in Corp., Halsey, Stuart & Co. Inc. and C-Iore, Forgan & Co. Northern States issue. and Broadway, New York City. tions Chandler, President, announced that the plans to spend $60,000,000 on new construction through 1958, and that about $25,000,000 would be raised company First debenture Reading Co. determined through the sale of bonds convertible debentures Office—160 Proceeds—To that company olans this year to issue and sell $15,000,000 of first mortgage bonds and use the proceeds for its con¬ struction program. Previous bond financing was ar¬ ranged privately through Drexel & Co. and The FirstBoston Corp. next 6% Inc. Foods, reported company plans to offer $600,- was King, Libaire, Stout & Co., New York. Offering—Expected in July. < plans to issue and company of Frozen Thursday, June 30, 1955 . writer—Eisele & (8/16) June 7 Keith Northern Illinois Gas Co. June 14, Marvin dihy. it ,(jv>u,uuu . * Telephone & Telegraph Co. writer—Probably Smith, Barney & Co., New York. Co. . To 21 directors Under¬ bidding. Prob¬ Halsey, Stuart & Co. Inc.; White, Weld & & Co. Incorporated; The First Boston Corp.; Securities Corp. and Union Securities Corp. York Telephone 000 6tock. $50,000,000 and would be issued at the discretion of the year by competitive bidding. Probable bvdders: Morgan Stanlev & Co.; Halsey, Stuart & Co. Inc be 100,000 shares are to be sold the balance for the account of Underwriter—None. Pacific June a plans this company S. McHugh, President, announced that will have to raise more than $100,000,000 of new.capital money to aid in carrying out its expan¬ sion and5 improvement program which will cost ap¬ proximately $200,000,000. Underwriter—For and bonds, • of Pure Oil Co. company tive shares Telephone & Telegraph Co. June 21 it was announced company plans to offer to its preferred and common stockholders later this year 1,339,196 additional shares of common stock on a l-for-6 basis. ( American Telephone & Telegraph Co., the parent, owns a majority of the common and preferred stocks presently outstanding.) Price—At par ($100 per share). Proceeds—To repay bank loans and for new construc¬ New Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. Kidder, Peabody & Co. and Stone & Webster Securities Corp. (jointly); and Lehman Brothers. The 160,000 of about Underwirters—Probably Stone & Corp., The First Boston Corp. and Smith, Barney & Co. writer—To be determined by competitive to and and company Webster able bidders: the $25) April 9 stockholders approved the possible issuance of Feb. 4 Jan. (par Pacific the York. t-> snares several million dollars." The company has scheduled large-scale expansion program, involving $75,000,000 in order to keep abreast of estimated load growth over announced that in connection with its pro¬ Underwriter—Probably Inc., San Francisco, Calif. that early registration is ex¬ of cumulative convertible pre¬ ot posed plan of recapitalization to be voted upon July 26, the company plans to raise not less than $300,000 of new capital. Sept. 20. a Haven Clock & Watch Co. was re¬ Puget Sound Power & Light Co. April 5, Frank McLaughlin, President, said that "it will be necessary in 1955 to obtain funds for construction purposes from outside sources—at least to the extent increase $3,000,000 to Proceeds—For expansion program. writer—Merrill be stock, of which the latter part Fall, the amount and ratio to be determined later. American Telephone & Telegraph Co. owns about 86.7% of the presently outst<ffiding common stock. Underwriter' Murphy (G. C.) Co., McKeesport, Pa. April 12 stockholders approved a proposal to on to Halsey, White, Weld & Co., Lehman Brothers and Union Secu¬ Telephone & Telegraph Co. that company plans to issue* stockholders (EDT, Registra¬ Bids—Expected Chicago Corp. Underwriter—A. G. Becker & Co. (Inc.), Chicago, 111. • rities next . common for 17. reported was stock termined announced was to June 7 it 11 a.m. pected of 80,000 ferred Aug. Southland April 18 it Far East Line, it 18 for — Middle sell June • $2,000,000 convertible debentures due 1970. Un¬ Hallgarten & Co.; Straus, Blosser & Mc-. Dowell; and McCormick & Co. (latter handling books). and (jointly); The First Boston Corp. ceived up to tion. company of derwriters Hutzler & tion—Planned Pacific the idea of refunding the $17,000,oU0 5Vs% first mortgage and collateral trust bonds due 1978 Probable bidders for new bonds may include Halsey, not & RR. 14, E. Spencer Miller, President, said company has Feb. Ripley & Co. Inc. and Stone & Webster Corp. (jointly); Kuhn, Loeb & Co.; Blyth Co., Inc.; Union Securities Corp. and Salomon Bros Securities . . The to file (10/18) reg'stration statement with the SEC early in September with respect to sale of. $8,500,GOO first mortgage bonds, series D, due 1985. company Proceeds—For struction. titive Inc.; proposes payment of Underwriter—To a bank be loans and determined new by con¬ compe¬ bidding. Probable bidders: Halsey, Stuart & Co. Merrill Lynch, Pierce, Fenner & Beane, Salomon Bros. & & Hutzler and Stroud & Co., Inc. (jointly); Coffin Burr, Inc.: Kidder, Peabody & Co., Blyth & Co., Inc. White, Weld & Co. (jointly); Blair & Co. Incor¬ and porated and Baxter, Williams & Co. (jointly). Bids— Tentatively scheduled to be received on Oct. 18 at company's office, 441 Stuart St., Boston 16, Mass. Volume 181 Number 5442 .. The Commercial and Financial Chronicle . (3029) recent statements Coyne, Governor by James of the E. Bank stated of Mutual Funds Mr. the Coyne next 20 Major National Analyses Market Basic much economic sounder stock market factors support today in relation current market and rities than in these to prices high, according to released provide for the 1929 factors not are special study a today by National Secu¬ & Research Corp., which that Product well may affecting the discussed in the are in Canada's exports have ing, brokers loans, margins, earn¬ ings and dividends of industrial Canadian Fund, Inc. was organ¬ ized in 1952 as a U. S. corporation corporations, population growth, industrial production and corpo¬ with policy of investing in com¬ panies which offer outstanding rate opportunities for participation in Canada's long-term growth. As of May 31, 1955, approximately the dustrial Dow-Jones in average 1955 In¬ may tional Series of mutual investment funds about combined Na¬ 95% of total its invested in of assets is a sequel to published a year originally when ago, the market much lower level. at was a It includes the following tabulation showing tne relationship between stock prices the " economic and 1929 and 1955 indicators partially are estimated by Supports and (18id=J0«) the net assets Canadian Value of Industrial all Personal NYSE durable private purch. goods & local Gross National Disposable Personal National mate for 1955. No services net assets alent to $16.91 as share a $29,324,397 Hugh compared $14.73 per or Nov. 30, 1954. on a Dividend of May 31 $33,191,070, equiv¬ reached expends. 100 419 100 362 100 315 100 402 100 3oJ — of economic tAt tAt projected. 1955 for No Are for data level. 440 increase for calendar esti¬ May the fears of A barometer this to answer market of ment which will 1955 among investors who senti¬ give investors an qusetion has been developed by Arthur Weisenberger & Company, members of shown—an the New York Stock Exchange. This device is a feature of the estimated 210% gain over 1929 in 104% the stocks twice over rise listed expendi¬ 15th edition of "Investment Com¬ the in the on as large value panies," Bid as of reference in the field, published this week. The Board." a 400-page contains uring and mation on the book and well as book meas¬ contains 53 as earnings on 117 closed-end Series investment market history, investors apparently felt that stocks have worth were stock mutual invest- just fund providing a supervised I I Mr. for possibilities of long-term ; j 20 dealer or: ' ' National Broadway, | the firm. "In other words, to get $1 of dividend income it was necessary In the to time however, investors that much most either much as Inc. able—not 1930 New York but valuable a Investors of refused charting the price1 people willing to pay for $1 of By were dividends from ent as $1 dollar divi¬ little as $10 of 1900 to the has been able to develop all Cana¬ affiliates value instalment of of face- certificates 1954 stocks and ing to $30 pay people of the in 1932, a for that same the At months, time is assets and of invested was preferred the of 95% stocks. that the public around panic $1 in in this invested was six fund's bonds Of in and total, bonds, 78.59% in preferred stocks: at +he in $1 stock PERSONAL of Or¬ lando De Bary, Florida short of the and been anpointed Florida represent¬ ative of Mutual Fund Distributors, Inc., principal underwriters market St. of the tion's with net assets cau¬ of $37,- over 800.000. en¬ Mr. the Ireland recently si g n ed inflated and dan¬ level." reas representative W. Ireland for the First m I|y ATOMIC SCIENCE tiirowsii Fundamental Investors, Inc. Inc. 5,914,876, the Diversified Investment Fund, Inc. lygj is a in FUND, the Fund wholesaling A . Funds investment through Mr. Ireland, 33, studied at Temple University in Philadelphia, Pa. gained his first experience in Manhattan Bond Fund, Inc. Inc. mutual fund Custodian f+nne MUTUAL pany of America, (ji Diversified Growth Stock Fund, Inc. 12) \j?No/y companies participating in Fund Key- Boston, Mass. THE variety of with field designed4o provide a Man¬ of long-time resident of De Bary. managed investment in Distributors, and ATOMIC DEVELOPMENT sponsored by tributors, Ins., tion of 30,- 1954. the fund's investment portfolio between senior securities and cash the hand one the on and other ' This the fund's err xm facts and rut prospectus JLIOHIC DEVELOPMENT SECURITIES CI 1033 THIRTIETH STREET, N. W. WASHINGTON 7. D. C mutual local investment funds through Firms, or: HUGH W. LONG AND COMPANY y proportion 3, New . of , interest in corporate William equities, according to Gage Brady, Jr.,- the Chairman, reflects the, management's belief that nomic conditions still favor jor weighting in eco¬ a ma¬ stocks. common New common stock investmentsincluded purchases of automotive, and machinery company- Atomic Reps Plan Attend Investment a Com¬ mutual fund Fund Dis¬ MICA announces to Geneva Atomic Fund the elec¬ Parley Development the on Peaceful Energy at to be Jersey Newton I. Steers, the Fund, Louis Jr., President Gerald, New City representative, and S. Chadwick Reed, New England representative, will attend the of York Conference and confer terested in atomic tion the U. the of S. First on of Energy New mutual fund. with Bache Formerly & Co. York, Mr. Jenkins also is of a Mr. Steers amount of ex¬ the International Peaceful to be Uses held new said that vast a information would be declassified for presentation at the Geneva Conference, and that the atomic a industry would receive great forward impetus as a con¬ sequence. A secondary purpose of the visit, Mr. Steers said, was to in¬ vestigate the desirability of the fund's investing in European companies which atomic The energy fund as well entering the are field. already owns N. as number a of a large block the se¬ South- companies, Canadian and atomic companies. of Aus¬ It also shares of V. Phillips Gloeilampenfabriken, nuclear equipment manufac¬ with director of North American Tele¬ turer vision Western Productions, In. an in Geneva concurrent witn the Con¬ ference. holds a in¬ Industrial Lec¬ Exhibition Atomic Eu¬ are affairs. The fund will also have hibit in tralian of with businessmen who ropean the first Negro to become a direc¬ associated of from Aug. 8 to 20. gold-uranium believed Uses Geneva African is Mutual send three representa¬ the International Confer¬ Atomic Philip M. Jenkins of White Jenkins Mr. . will tives to tor incorporated Elizabeth main¬ investment ; of - these common was tained curities from Atomic Science. on C9.17 $8.37 at exceeding by outstanding* Plains, New York, to its board of resulting Prospectuses available of shares directors. in activities year- During the six months ended May 31, the relationship withia dealers in the State of Florida. tfjgSv the MUTUAL Mutual sent • ¥ he had been associated for two years. In his new position, he will repre¬ aged <i MUTUAL FUND. share per 197,901 Nov. Florida In¬ vestors of Orlando with whom S/ fiscal compares with totaled ence fund organizations, Charles ///,v value May 31 na¬ largest mutual well of Louis, Mo., one pay thusiasm which would suggest an cf the close of the previous year and. $7.47 reported May 31, 1954. Out¬ standing shares on May 31, 1955, '^Managed of it is still degree Asset on the over has and sentiment tion of several years ago, clo-3 PROGRESS IRELAND present confidence above the level of worry the figures reported Nov. 30, 1954. railroad W. dividends. market public at shares. divi¬ is wiping to for $23 indicates gerous first the Funds, Inc. of noted end fund's close over dends. It assets period amounted to $54,235,949, representing an increase cf fiscal according to the fund's semi¬ 1937, 1942, 1949, and 1951 a wor¬ ried public would only pay $15 less 1955 today. ers in public would pay only $1 in dividends, and in for half CHARLES contrast, stricken Total net will¬ for $1 dividends. $10 first com¬ were or more Investors Iout¬ of shares ; the stocks annual report issued to sharehold¬ years for net number of May 31, 70%- of $880,167 for holdings. as increase of an year, 1928, 1933, 1938 and 1946, for example, were times of By $21,604,Of2 to 1955, the senti¬ high public enthusiasm and $50,000,000 substantial; in¬ asset valuej per virtually unchanged. Al¬ Inc., mutual fund though bonds and preferred stocks* managed by Investors were increased slightly, common 17.30% The of assets the with standing. on Up of one continued throughout the Services, rose stocks Inc., $20,723,845 as of Nov. 30, period to represent approximately from ment. mon net affiliate single of stock market barometer share May 31, period Diversified pres¬ a crossing and creases,, in mutual Group the progress, with total net Selective Fund, the Weisenberger firm time, dends has sold for or century, Ltd., maturity Total device— tim£." J the four of I.D.S. Fund of the de¬ measure Fund, report termed continued ; only of risk in the market at any gree existence of of total was not can forecasting a turn j gross sales Fund Total Weisenberger asserted, "and therefore, in the price of $1 of dividends, the investor has avail¬ j | pay it Investment semi-annual its $6,378,152 amount, of and I.D.S. fund, $36, as variations far & New York 5, this dian Mr. "While to invest $20." practice, for gladly paid more—because of the importance of psychological factors. Since the Corporation Established 120 dividends," says Weisenberger, senior partner i J Securities Research rec¬ be measured, but they hold with¬ in a rather well-defined range," or times of growth of capital and income for its shareowners. Prospectus and other information may be obtained from your investment about the annual rate of investment in securities selected ment mutual grand 661,48. The funds are Investors Mutual, Inc., Investors Stock Fund Inc., i Investors Selective Fund, mailed to Well¬ $455,000,000 basic infor¬ the operation and many companies. "On the average, over recorded stock common on of uses National Growth Stocks a funds companies j Investing In chapter portfolio holdings, performance data mutual j Interested In, illustrated sentiment. addition, full Arc YOU full a market In I net The investment funds managed and distributed by I.D.S. totaled $37,- 9, 1955. / A. J. Wilkins, Vice-President-of the today. $83,705,646. Of share ington Fund shareholders of "These the economic supports tures—is from were Sales was invest¬ distributions in records noted. hesitate to buy stock at the pres¬ ent time justified? | 31, projected. consumption of representing in ment income sales 61-year volume a and Study Analyzes Market clear," the report points out, "that the smallest percentage personal was . checks 1955, : assets security profits.; history of Investors Services, Inc., were broken during May, 1955, report¬ ed Grady Clark, Vice-President ord June stockholders, President, quoted Bullock, .. share paid Diversified today the declaration of 20 cents to message /■ . Perennial is "It Total had cents ^per in mark when it distributed $3,408,460 to approximately 150,000" sharehold¬ ers. May 31, 1955* six amount 346 . estimate re¬ Fund Diversified for the six months epded , 3600 —. 1955 was quarter one by Wellington 385 100 100 Product 1955. period, it semi-annual made Reports For Half corpor¬ Inc., from income 310 100 & estimates calendar the in made ever During the Fund's ditional distri¬ investment D1F Fund of $1.10 per share have been paid from income together with an ad¬ were - personal -Income— income in Fund share in per Income (New York), Beginning in 1953, total dividends 20 4 J 100 equipment govt, saving 115t 100 construction State ^Our 100 Average stocks consumption expends. Producers' New Fed. ing In 1955* Canadian Line ALL MONTHLY from Guaranty Company subsidiaries of I.D.S. 18,00 shareholders purchased over 8,000,- common dividend issued by Invest¬ Syndicate ^.of America, Inc., Investors Syndicate Title & and existence, net asset value per share has risen from $5.00 to $6.33. - LARGEST bution port covering the six months end¬ Market 1929 of six-month revealed share Economic Dow-Jones last with the National Securities staff. Some ASSETS increased about 15% the in •* Economic data for now. NET - years formed, the net assets Value the THE $240,000,000. The current study one stocks. three $46,044,158. These was were ate a in 1929. with the manages than than shares. closely approximate the $19.94 of earnings accruing ■ to that index and sponsors was now 000 on LESS More be would about 50%. dividends during May certificates Value Line Income Fund have topped the $50 million mark. study include the volume of trad¬ capital expenditures. It is pointed out, for example, that the purchased by individual investors of, the 65% and the rise in imports some THE since -it in¬ He further pre¬ dicted that in this period the gain factors the ors IN Canada's Gross years in payment quarterly pay¬ Wellington shareholders. to "in by 100%." crease market which Strength estimated the consecutive ment National By ROBERT R. RICH that 102nd Canada. 45 plants Europe. throughout 46 (3030) The Commercial and Financial Chronicle . . Thursday, June 30, 1955, . g' Debt Service improving adjustment plan of Nov. 23, 1943, shows that during 1954 the prin¬ cipal amount of dollar bonds was reduced by $9,525,550. Since the Foreign Dollar Bonds on inception of the plan, the total Brazilian bonded dollar Bulletin of the Institute of International Finance of New York IV. ■*. Research . Institute . Director o f of Europe the 1953 was in Cash Rate of (000) Int. Due (OOO) Return —----- . America 3.09 1,606,751 V 665,000 % $4,467,279 ——- 58,635 3.65r 58,636 ♦ 3.65 & 3.07 VV 20,388 * $181,400 of bonds / senting to the various debt- from 2.60 / issues cal G. Rowland 000),Belgium Collin. Govt. Securities by Canadian politi¬ subdivisions ($69,266,- sues ($30,000^)00), Bank^ Marcus Nadler and Development ($100,000,000). The n'ew is¬ and the funding bonds issued in settlement of interest arrears have offset partly the reduction in the total principal amount of outstanding bonds caused by amortization, calls, and maturities. Upon completion of validation of German bonds, the outstanding total of such bonds will be drastically reduced. As of Dec. 31, 1954, $130,626,200 principal amount of bonds have been registered for validation with the Validation Board and $116,923,100 of bonds Offered Foreign —Dec. especially if $3,277.2 Regard to Interest 1,143.4 von or 59.3 Total 76.46 1,028.2 bonds in 23.2 1.32 sale, —not, it is true, assume T mid-1953, but considerably above those of mid-1954. Historical evi- makf can indicate de- 88.3% Treasury in meet these in notes and Dec. 31, 1954. 1953 to The Far East accounted at the end of 1954 for 1.1% of total defaulted bonds. Amount in • Europe Far fer howpvpr T Defaulted $727.5 $109.9 10.6 1,238.7 908.4 years nre- maturities less, or and tainly not longer than five. cer- 10.8 1.1 North America Bonds Now the £Jicwc place in 1954, 15% of the Latin-American bonds, 73.3% European, and 4.7% of the Far Eastern bonds outstanding were in default. For the year 1953 the percentages were 18.4 for Latin America, 78.7 for Europe, and 6.3 for the Far East. Canadian defaulted bonds amounted to only $28,400 of total outstanding bonds in the amount of $1,606,751,241. analyzing interest payments, the Institute's study states: rate interest of return in 1954, based the the nominal upon amount of cash interest received for 1954 coupons on amount of publicly offered foreign dollar bonds outstanding at the end of the year, was 2.6% as compared with the average contrac¬ tual rate of 4.06%. constituted 2.49% In 1953 the amount of cash interest received against the contractual rate of 4.09%. as especially, preferable high a shall have my The we must whole be I expected, but think the trend 'ard gradually upward. applies to but in longer-run luxigui-i un addition is not ness this vear* the think Busi- year. going to fall rather I shorter-run, to the end of this say, its face on at vear nres— ? - ent is giving ing the best This - promise of be¬ every the demand for cap¬ means funds, for money and credit of all kinds, will be high. I am aware that savings being accumu¬ lated also are high, and this, I think, is the reason why interest rates are not likely to shoot up abruptly. Governments G< Federal F State State, ederal, and thev -— percentage of bonds assented to the various debt-service resump¬ tion plans. For 1954 actual rate of return of 2.09% was received on Latin-American bonds as compared to a contractual rate of 3.09%, an gregcite^o will mainder Spending more^han be take of in the and this means durine the calendar re year, they will be large borrowers of money. Demands for long-term funds by business still may be somewhat below last nowa- you issues In in 1940, was than more 200 Now it is somewhere second 60 or chbosing maturity a 3.99% against contractual rate of 4.25%. The amount received in cash in respect to 1954 coupons 64.02% was of the was contractual amount due, as against 60.98% in 1953. Under the heading "Recent Developments" the N.Y.U. study presents current information of importance to holders of foreign dollar bonds, including offers for resumption of debt service, prog¬ ress and changes made in default settlement plans, redemptions, before maturity, and issues of German new issues. The cash settlement offers for 13 municipalities, public utilities and offers of new bonds for five issues are and corporations fully discussed. An analysis of the results of the Brazilian Government debt show a times losses, too,' and sometimes the losses greater than those which would have been shown by non- marketables. when But it is also true ^been other times would have shown they a profit. Marketables cash almost cially year's lieve levels, but short-term that And ac- T he experts in the savings expect mortgages to and loan field continue in fully ample supply. All this will be reflected in risins demand System, The Federal as'always, Reserve will make it possible for commercial banks to supply all legitimate needs for credit, but I think that in present economic climate this r>r>+ ha avnartad falling trend of to hp dnne the cannn interest rates. a be turned can available are the to bonds in as into instantly—sometimes the cash proceeds the same day as redemption and Savings bonds sale, our a on espe- custody, notice of waiting period, hypo- cannot be thecated and thus cannot be used reasor^for preferring short-term for investment liquidity is that a further rise in yields, even though it may be greater in short-terms than in 20-year 40- or bonds, will njpan much less year in terms of dollar Vallues. Prices know, are much less sensitive than yields on shortyou terms, while on long-tepms yields are much less sensitive than prices. This is simply due to the mathematics of compound interest time. either . The possibility of loss, terms1 of book value' rirwi if i+ in , . a^a7 ™e,™ securities, Hpcfrnhie ^hleSre inereiore a/I bally less. earlier gested And, ™ as to I the substan! suusicui- is is t sell indicated are p&Ufeably above savings bonds bought ' periods. !'• Summary Now, if I the last In- savings interest redeem you world. on date them. for comparable short periods of holding. 0ur suggesti0n above day ments but to is day that cash which funds requireestimateg r sbow may be needed in less than a year sh0uld be put into bills, ury securjties. whjch certificates, Any yOU other expect be jjui put uc fhp a not be year, may jnto lungei uJelluiiu.es, for ionger maturities, inin calro 0f sa^e of The FHLB money, will cane(j for jn iess ^ban Treas- or tho present hiahov viold hjghej. yield. outlook, however, makes it seem prudent to confine this Por«°" °f portfolio to about three years or at the most years, or at the aoout tnree years, or at tne most, Good business, which implies need liquidity in poses all levels to of cover interest rates ar- govern- demands for pur- operating probable seem are anci moderately persons expecte(j by and deficits, makes it our and as savings associations as managers of meet mands \yhat I have tried a demand for borrowed funds by individuals, business, industry, agriculture; plus heavy capital de- quickly ment for capital investment up b^finished. I shall say, rangements t can|sum of essence We on the in accruing Finally, marketables at present yield more than savings bonds area on ) to stops market yields in the sug— and held for short the collateral bonds or hppnmpc ore m best terest in a gradu- rising trend. This seems especially probable for the remainder of this year. cash in the orc$nary course of Historical evidence indicates business» and iot unexpected or that when rates generally are re¬ contingency demands. Some needs rag, short-term rates rise more can predicted W1tb fajr ac- rapidly. This trend in fact has but curacy, we .snould allow a been effect for about outflow of funds/which paid the full contractual rate the Far Eastern issues redeemed were be needing bank 1nan<; years on if always loss. Marketables at some in the past have shown of interest. The return 3.19%, respectively. In 1954 se¬ wish to consider Nonmarketables before commodation will be needed. Commerce and agriculture also will 2.02 and marketable you may Europe paid at the rate of 1.03% instead of 5.66% contractual rate. In the preceding year Europe paid 0.82% instead of 5.74%. The North American issues in both were between-non- - and comfortable margin for error. Even an mdustfy growing as y°urs has grown cannot neglect noticeable in the ppssibility that at some time makes it there will be a setback and a net while for 1953 the rates maturi-V these points: before funds needing positive those record. on A ital principal amount of fully serviced issues and to the rise in the use- generaLrecommenda"Z#; •«'" marketable curities, be and in-L Thatis* investor, sacri- Nonmarketables require neighborhood of 50 rather and me the tu an securities the- as period of rising interest Fluctuations upward and the increase in the actual amount of interest paid as compared with the corresponding figure for 1953 is due to the increase in the total new 'as you, the basis points. at for a it will be true of the $30,000. actual I in a i mar- dogmatic, because running out. j. uia This At the end of The xuvxiy look account to.be rather is of the In jaiicx brief a a will need to be certain of we on 100.0 from 15 years . may last especially past year, possible to buy securities of only a few years mabeLUXUie:5 Ui oiny d iew md a considerable time. It is then that tunty at yields much closer to you w nped investments which those on securities many times as carl be..^q.4|da^ed*; Quickly, surely, jong tjian was possible in the past; and with littlev or no loss. Interest . which may have been earned Preceding period will be in be a no sub- nence terms How big your litjiuidty position must be can be determined only A you. about The average recently was 12%. as Compared required ratio of 6%, with a Individual there mere is is less iess reason reason and a u justification for including long- sutute for these qualities. by , possible *°r example, the spad between as collateral for loans, if required, three-year and twenty-year Treas- Marketable Treasurys are the appro¬ prospective It degree of liquidity. rates. $1,028.2 an that now, maturities are outlook, than iut for and is now; longer less in terms of yield if ury Fundamentally, I think that 665.0 $4,467.2 this view downward struction and Develop. ♦Less think current are Internatl. Bank for Recon¬ Total I priate IJiXctLC time is * 1,606.7 days basis points. Present and Prospective Market 88.3 229.3 — this of all Practical standpoint is that the should myself'to limit to three of if % of Total Default <000,000) East____ the preference to long_ones. shorter ((MX),000) Latin America right in in - The result in at take fairly short-term, my Geographical Distribution of Bonds in Default in Regard to Interest on December 31, 1954 Amount taking place This perspective, it has been going On trend-wise ever since 1940. certificates, maturing in funds rapidly. more indeed, looked also less. or additional ket situation. Outstanding ther, and re- invested be bills, FHLB year to may present ac¬ default, Bolivia and Mexico accounted for 54.53% on a fact is Funds 15.86%, respectively, while German issues represented 63.62% of of of dence seems to show that, in a Period of rising rates, short-term re2- larger renditions total European defaulted bonds. Latin-America accounted for 10.6% of total defaulted bonds, as compared with 12.3% on Dec. 31, 1953. end the levels as cus- liquidity position may be invested in longer-term issues for the sake of the higher yield. Under Of the total Latin-American Europe's percentage increased from 86.3% at the Interest rates already have risen to not rates usually rise first, and fur- that there have one 0.52 1954, European and Latin-American obligors counted for 98.9% of defaulted bonds. however, cash. mands for which you may expect to to need cash within the next 12 23.02 $4,479.9 100.00 $4,467.2 100.00 On Dec. 31, will Any Principal which makinfor are ularlv In Default in Regard to Sinking Fund acting we are Ynnr animates in % 73.16 $3,415.8 25.52 the day of on as todians of your securities. quirements —Dec. 31,1954— (000,000) % made available or Debt Service Paid in Full In Default in Dollar Bonds 8I,1953— (000,000) less months. have been validated. Status of Publicly and In Liquidity Assets oi Savings Associations and the International for Reconstruction principle which jmay thatjtjs sometimes im^ove both liquidity come Joy holding shorter ful is tion. service resumption plans and to the flotation of new . total determine can V to 13 page yield ojaf! down -r' One . ties Continued , pull much. very a liquidity position need, in total, buti.also howl much may be Invested and how much hel<f'in"the form of cash, 3.07 - as¬ that you V $li6,133 4.06 also smaller a not v. due to the grow¬ number does Only you "only how big ;3.99v- - Total leverage, earnings 9,141 20,388 ry- the 1.03 *12,775 ■ 4.25V - liquidity, i follows largejji these 2.09 $15,194 5.66 9,739 It liquidity is small, earnings froni/; . 70,146 ' 229,315 const. & Dev. iced in full from 73.16% in ling Rate of Int. Bk. for Re- versity. The increase dry proportion of bonds serv; Average Int. Due $22,491 be. truly liquid it major assets must be This is significant because it makes it possible to % Amt. Rec'd East------ North International Actual Contract'! $727,5461,238,667 ' Far % of Avg. Amt. of (OOO) . Contracts Outstanding America- to your more the 31, 1954 Latin smaller accept a smalle*! yield on the investments in your liquidity assets, and because of;, Amount Finance of New York Uni¬ \ if ' '. • Nominal June 20 - r • the ought Contractual Amount of Interest Due and Amount Received in Cash for Coupons of Bonds Outstanding Dec. bonds outstanding on'Dec. 31; 1954, according to a bulletin entitled "Statistical Analysis of Publicly Offered Foreign Dollar Bonds," by Dean G. Rowland Collins, Director, and Dr. Marcus Nadler, But position, the by 62.2%. In 1954 debt service was paid in full on $3,415,808,075, or 76.46% of the total $4,467,279,321 of publicly offered foreign dollar on stantially higher. (ex¬ has been reduced from $284,560,645 outstanding on Nov. 1, 1943, to $107,551,905 at the end of 1954. Thus in the 11 years from January 1, 1944, through Dec. 31, 1953, the outstanding amount of Brazilian dollar bonds was reduced in 1953. ' associations may have ratios sub¬ clusive of the State of Ceara bonds) University, issued by Dean G. Rowland Collins and Dr. Marcus Nadler, gives estimate of 76.46% as 1954 debt service of publicly offered foreign dollar bonds compared with 73.16% issued debt ^ in one's chort-term „ liquidity position, fairly large rise in yields securities on arithmetic- i n impi es a relatively insig/ g nificant decline in terms of price. olume 181 Number 5442 V s" The Commercial and Financial Chronicle .". (3031) "rights" tional 736,856 shares stock common holders. • of to addi¬ present The * The major scheduled offering is Consolidated Ciga*r Co.'s $17,500,-' 000 is of 20-year debentures slated the for Sulphur which next Thursday. ..On snjaller issue, Gulf day, same a Corp.'s $1,500,000 of de¬ bentures, $3,000,000 series A and $1,500,000 series is also slated for market. The Treasury's some cash new to move this at Indiana raise time, whether by choice or by coinci¬ dence, comes at a point where it is destined with the raise the least to to general capital market. settle of the bit a Public which shape not th^ from up too as underwriter's standpoint is that of Southwestern fact of of such Taking pressure off the long-term end of the list-. $3,000,000| And just to in prefered , makq things a little bitter, it is ma(de known that this financing will be done -via the direct placement route. more The long 3s, brought out in Jan¬ - settled uary, 100 7/32 against the re¬ high cf 101 }4 on the bid side, with the 31/4S and the long 214s also tapering a bit. But aside market from which the is municipal burdened with fairly large backlogs in some di¬ visions, prospective investors had to scratch to around in their efforts place their funds at In corporate and field, dealers' under¬ shelves which came .week ago a sharply into focus when Southern a New England Telephone Co.'s $20,000,of of 314s, after slow a ,as a em¬ means of capital, the build up forward calendar of new new the bond equities on raising issues is slpw; at best. The only substantial recently new debt is Pacific Corp.'s $20,000,000 of 10- debentures. year * Slated to carry a proceeds coupon, issue will this from be used to expand the firm's general to cut short-term bank debts. were closed Carlson and General as Elec¬ Raytheon. In addition to of the 75,000 shares preferred stock the com¬ new has pany outstanding $60,000 of 4% % debentures serially due to Oct. 15, 1956, 824,965 shares of common stock stock and 92,000 common purchase warrants exercis¬ able at $3.25 per share, which pire June 24, 1960. Frederic H. Hatch & Uranium Co., "as With the Fourth of July holiday stretching JUonday, the weekend through short week, and a too' busy one, tributors of shapes new up for securities. largest undertaking in fact is which is not it dis¬ The one being underwritten. American.-Natural going not a alone in Gas. Co* offering is on Associates South $10,000,000 tures Investment Bend, Ind. 4% of Co,. of June 29 sold on Counties, 10% Miner's and The and development other of caoital deben¬ 31, 1957, to Dec. a 5% sinking fund thereafter to maturity. Robert L. Oare, Board Chair¬ tion of a the that these funds reduce Direct The ties TITLE of Morest is 4627 of 262 unpat¬ bank notes - Three With for and Trust company's present proper¬ all located in Central New Mexico. per 5,000 640 area; Fort Wingate 5,604 SPRINGFIELD, Mo. — Vernon Drain, Paul M. Lowry and Charles A. Petterson, Jr. are now with King Merritt & Co., Inc., Woodruff loans. was arranged Joins acres ,874 1,280 - in • ; offering of 75,000 shares cumulative convertible pre¬ stork of $10 par value of Pyramid Electric Company is be¬ ing made today (June 30) by S. D. Fuller & Co. of Ne\y York City. preferred, convertible into stock until Dec. 31, 1960, is priced at $10 per share. Initial common (enemy conversion of rate one of. the preferred share for 67/100 share 1955, payable the of from stock company the CLEVELAND, Ohio—Joseph W. now with Ross, Borton & Simon, Inc., The 1010 Euclid Building. J . Financial a part- | g g of the Midwest Plaza sale of COMPANY this declared a regu¬ cash dividend of day quarterly a Thirty-Seven and One-Half Cents (37V2<) per share on the capi¬ stock of the Company, pay¬ able on August 15, 1955, to | § stockholders of record close of business R. E. the acquisition electronic compon¬ ents, the major portion of output being manufactured to customers' specifications. capacitors The manufacture constitutes Net sales SOCIETY] first for the two share on the payable September 1> close of business August 18, 1955. Christian deDampierre Treasurer palmer, Secretary June 23,1955 j FINANCIAL NOTICE • approxi¬ year months was 1954. of to $7,- $529,- For 1955 the sales ; PACIFIC regular quarterly An increased FINANCE CORPORATION Notice to dividend—from Security Holders of to 30c by Checks will DIVIDEND j been Daystrom, be • 25c per share share—has per declared The Cleveland Electric Inc. mailed August regular quarterly dividend of $1.25 per share on the 5% Series Preferred Stock ($100 par value) payable August 1.1955, to stockholders of record July 15, 1955, was declared by the May 31, 1955 Board The Cleveland Electric erally available to its of Directors on gen¬ security holders, in accordance with the b. c. Reynolds. Secretary provisions of Section 11(a) of the Securities amended, an Act of 1933, •c as earnings statement for the twelve months ended May 31, 1955, such period LONG ISLAND LIGHTING COMPANY beginning after the effective date of the Company's registration for goodAear $20,000,000 First and QUARTERLY DIVIDEND Exchange Commission DIVIDEND under said Act. Copies will be mailed upon re¬ today de¬ following dividend: clared the quest to any of the Company's security holders ested 50 or NOTICE The Board of Directors other inter¬ parties. cents per share on the Common Stock, payable September 1, 1955 stockholders of record at the to THE CLEVELAND ELECTRIC ILLUMINATING COMPANY By Donald E. Williams ' clared cents a quarterly dividend of 25 per share payable Common Stock of the on Akron, Ohio, June 27, 1955 THE GREATEST at the close of business July 1, 1955. ' NAME , VINCENT T. MILES a*,. IN the on Company August 1,1955, to shareholders of record on Secretary 75 Public Square• Cleveland l,Ohio COMMON STOCK Goodyear Tire & Rubber Co. By Arden E. Firestone, Secretary 1 The Board of Directors has de¬ close RUBBER June 22,1953 # # # • • • June 22, 1955. Illumi¬ nating Company has made NOTICE A record 15th to shareholders of The amounted 773,882 and net income 645 stock 1955 to stockholders of record at the July 15, 1955. of business July 20, 1955. mately 95% of the company's busi¬ ness. dividend of 37tf( per common the at NOTICE1 The Board of Directors has declared 1989, filed with the Securities The company, organized in 1944, manufactures CANCER JKlH, | ^vill be used by facilities, equipment and machinery and as working capital. AMERICAN] ... Treasurer _ ' to close July 5, 1955. DIVIDEND board of directors Mortgage Bonds, 3% Series due new of the at STAUFFER CHEMICAL tal 1 Exchange.^ July 15, 1955, record GAS Rockefeller The has Chronicle) on of on Dividend No. 30 1 members Company stockholders COMPANY 30 with Stix & Co., 509 Olive Street, of the New York 20, N. Y. LOUIS, Mo.—Ferd H. Bach Stock Company, held today, Friday, June 24, 1955, a divi¬ dend of $.50 cents per share was de¬ clared payable on the Common Stock us '.J Stix Adds To Staff now of The Gamewell , NATURAL lar is meeting of the Board of Direc¬ a CONSOLIDATED 1 , , (Special to The President • At tors W. C. Beck, Treasurer J g the for V Mayne is of business in Morris & Smith. ST. the third quar¬ stockholders of WILLIAM H. DEATLY Arriba Rio his retirement he had been statement common. Proceeds preferred Ross, Borton the 7 Laurence J. Hirsch passed away June 23 at the age of 62. Prior to ner as dividend'for August 26, 1955 to, record August 4, 1955. Coupty; County; County; Valencia acres Company have de¬ dividend of 30 cents share designated ter-annual Mesa in acres Socorro in acres the Sandoval in Months Ended stock is ; (Special to The Financial Chronicle) Earnings Statement for the Twelve Pyramid Electric Stk. cruelest Building. (section two); area in acres 4,300 in acres a on These comprise approxi¬ mately NOTICE Trustees of Title Guarantee working capi¬ Initially, S. D. Fuller Offers The King Merritt (Special to The Financial Chronicle) July 27th. man's Co., Road. ' DIVIDEND NOTICES Company DIVIDEND additional Illuminating Company of 5% with E. R. Bell now Wornall GUARANTEE and Trust through Salomon Bros. & Hutzler. ferred Chronicle) for fur¬ pay are placement of the above- Public Financial a being applied to short-term mentioned at ahead. are 40 CITY, Mo.—Loyal E. good volume of business months the proceeds back KANSAS corporate mining claims of a total of about 5,240 acres, in clared will further strengthen the capital of the company in anticipa¬ in general total a tal. base strike Reef properties of fhe company ented claim.' acreage properties, in¬ cluding further drilling in the Fort Wingate area, to the acquisition Dec. announced (Special to The DIVIDEND NOTICES bp usedi to 31, 1964, with man, Mountain, purposes. ther exploration and development of the company's 1, 1969. The placed privately and for a sinking fund of from Monster approximately L. , The net proceeds are to be used for exploratory drilling in the San speculation." was provides com¬ exploring for uranium and other minerals and has mining interests in Wayne and Garfield maturing Jan. issue of E. R. Bell Adds speculation" a incorporated in Nevada on Aug. 16, 1954. It is in the business of Laurence J. Hirsch Private Placemen! Holiday Week Ahead "as (par 10 cents) of Capi¬ tal Reef Uranium Corp. The Capital Reef company was consists the acres. equipment; and for working capi¬ Co.^Inc., Inc. consisting com¬ with Energy Commission Green stock mon tal City, 1 it is announced today (June 30), has offered and sold an issue of 300,000 shares of capital stock (par 20 cents) of Pinon the rights of the contract a offering publicly at are share per issue of 300,000 shares of an York Associates Investment out.'..,; $1 to as Sheets Gulch groups and the Green Monster claim; to purchase momentum and up Exchange, under pany U. S. Atomic and Offering Completed New Share a Franklin, Meyer & Barnett, members of the New York Stock Rafael, County. 1 •, Stock at $1 Utah. ex¬ Pinon Uranium Stock and , Quickly picked companies including tric, Westinghouse, Radio Corp. of America, Emerson, Stromberg Gigante 3V2% funds and start, such industry, properties and offering to go injto registration with the Securities and Exchange are fact Slowly putting greater Commission work. titeraly bare of inventory 000 phasis Finance the writers' stock market among addition to the The net proceeds from the stock sale arb to For the moment, with the strong around cent Capitol Reef Uranium . Builjls Calendar bit further to rule a electronics plans to r&ise $10,000,000 the sale 6f bonds, plus stock next March. money some ^ a ' income net numbers Involving bonds stock. nine months jump on the market, the company has an¬ another a new through the sale of an ad¬ ditional $100,000,000 of bills week¬ prefered through the Treas¬ ury's decision to obtain at least ly, tended to take operation Public Service Co. terms nounced portion projected does palatable eral structure. substantial Look Ahead Another operations, but not to the extent of creating any real serious disturbance to the gen¬ of shades of new pre¬ of forthcoming matter of¬ anticipation in announcement a is i Long and As Co. and company its customers practically all of the leading concerns in the various branches of the electrical and 12 Northern Service ferred. hob Government bond prices contin¬ ued On July fering 120,000 were $1,327,649 $94;138. 47 43 The Commercial and Financial Chronicle (3032) . "When to man on • of Capital from the Nation's a A \ y* t V\A/ JLjL # piece a much citizen. This benefit which cannot be We a a or make him you to money house a valuable ured A. \J iA/ lend you buy land, more Behind-the-Scene Interpretations 190^ rendering, he said. \ • Thursday, June 30, . service the government has been BUSINESS BUZZ • . is meas by the standard of profit. in danger of doing great" are harm because of the catch won of 'getting the government or of business'," said the Congress , also D. C—Con¬ probably will not finish enacting this year the Fulbright bill to regulate unlisted securi¬ ties, even if that proposition should find clear sailing in the 'Senate, it was indicated by WASHINGTON, < majority a man. of; (This column is intended the Fed¬ and oil The this thought House White it had for the that approval and may or may not coincide with the "Chronicle's" vieibs.) own again would reaffirm the intent Lehman H. re¬ pretation from the nation's Capital industry gas year to flect the "behind the scene" inter¬ Power Commission. eral pending natural gas bill, which Herbert Senator of the regulating agency, informants. House to the wishes and contrary interpretation gress ' that the price of produced locally should not be regulated by the of N. Y.) was scheduled to hearings this week, as Chairman of a Senate Banking subcommittee, on this bill which D., than more $5 of most to million of assets SEC the worked Interest this in bill revival got an prices ganized stock exchanges. of the spokesmen lated it was . unfair - The bill. Humphrey with this cute regula¬ simply is a istration question of oppo¬ enterprise prima- is enhower somewhat legislative toward this public figure. Consequent¬ to come imagine the cal profit see of the Senators So it probably will enacted. over until then next will it somebody be picked nice, sees go only and year, up. if seductive; political attractions in the figure of the unlisted securi-i curving However, little in days ago was hardly strong enough to raise hopes for be called can present chaotic Congressional Dem-t So desperate state of the ocratic issues, Democratic now hower has the poking ing of, that Presiden Eisen¬ stolen New from for leaders Deal, about that all around 80% they the and of are trash doll¬ are , However, victory wrappings for 1955. new practical regulation there¬ a voted In other lor the Democratic inventory. will And is bill which White a House would veto), as members of Congress ascribe it, subject local sale of gas from producers independent of inter¬ to state pipelines, from price reg¬ ulation. When the Congress Natural 30's, empting it Gas passed Act thought it local was production price regulation. Then the back in ex¬ from in 1947 a large majority of Congress re¬ affirmed this specific intention. While President Truman vetoed the bill, a majority of Congress ^nevertheless has thus this to this extraordinary later rul¬ ing in the Phillips case, a decided ruling of the the case bill a natural your could talk for that this but you coudn't political sentence," one bill damage as of " dead proposition. a There is Bank Mergers on another compromise coming up. This one is question of regulating on the sion That promise. He bank mergers, the bank supervisory agencies should first pas£ - upon them, respect asking to the of advice the Commission ment if Then to formula the changed so William 111.), were in that the effect were competition "un¬ force the present Clayton act says, "substantially," they could be approved. Finally, enjoinment of mergers which "lessened competition unduly," would be left to the Department of Justice instead of to the bank supervisory as and of of agencies V if ■ Congress legislated the Hoover the like a way off demagogues - Arthur (1) Mr. Dawson wanted backs of the officials who exam¬ the ine and supervise banks. On the force other hand, the demagogues rec¬ government only MERGER, bad business in their opin¬ and So se, : this . . (2) . "compromise" conceivably out of the cause hear could and Mr. reduce the trol: A Critical Burnham and FDIC, Reserve Board, York subsidies to United or to learn what service the the tion 23 bills have been the this Commission ply had recommendations thus far, not a a private worked the for were men International Finanr* — Internation Department of E< Sociology, Prim and ton University, Princeton, N. (paper), on request. on who sim¬ profit. of lending for They had no New Views on RIVERSIDE CEMENT CO. CLASS CALIFORNIA B (Common) Copies STOCK on request vocal elements see Man Implications—- Wy divi¬ in $5.75. Hoover conception of the value of the Congress has turned nor a bit of (cloth) Merchant Some Department of Jus¬ tice and certain Beckwitl background of busi¬ enterprise, ness wheel of who men project introduced in Congress to carry phases of the Hoover States nomics The Congressman found, he explained, that without excep¬ Commission 27, N. Y. Section, they race antitrust Putnam Garter - Dawson Checks Into Hoover Congress, to which LERNER & CO. can stick his tongue out farthest and say the nastiest concentration things of power in Big power Government of interest Both not to the partmental Labor in the York the flARL Marks FOREIGN 50 TEL: SECURITIES BROAD STREET mergers an in Co. Inc. New honest \ N. Y. TELETYPE NY .. Securities Post Office Square Boston/Mass. 1-971 - f/jone HUbbard 2-1990 Teletype BS-69 SPECIALISTS NEW YORK 4. • HANOVER 2-0050 making much Being & 6ig being subjects gentry. legislative and de¬ parties in political bank City. and 10 this interest have been rif Investment about business world, concentration of - " y Theory Policies: render. Comptroller of the Currency.' bank a History the of Economic voted, were - Com¬ & Columbia University Press, N lending which would be affected if these far more em¬ to the issued Wiesenberger- Wiesenberger Restatement lending agencies recommendations some Arthur — Marginal-Cost Price-Output Con¬ exten¬ wanted Dawson from barrassment than it would avoid While 1 thereon. one thing, per ion. consideration, MERGER is a these " 61 Broadway, New York 6, N. Y. (cloth) $20.00. sive recommendations to get the ognize made Upje V, pany, the Commission task which B ' A to examine into the background of men on ' • ■ Mr. Dawson explained the ob¬ jectives of his committee hear¬ the Stabilization: —• The W. E. ' > Ui " tion to ( _ Wage Investment Companies—1955 Ed ings. This might look t . Institute for Community H /' search, 709 South Westned ^ Avenue, Kalamazoo 44, Mi (paper), on request. into existence. agencies. Annual llography lend¬ recommendations *" ^ * - Bpsiness the and subsidies would be curtailed Commission / ^ A'" (cloth/), $4.00. • Guaranteed activities whose A (paper), $1.00., good living—Farrar, Straus Young, Inc., New . York C task- Federal the of try created the first century ,'*> has called members lending agencies ing (D., Dawson committee the various Hoover L. Superintendent How the first century of indo govern¬ on Gov- Everything and the Kitchen Sink; * agencies. Under of its Chairman, lending Rep. lessen report direction the De¬ partment of Justice if necessary. not D. C. Committee, which has held a course of hearings on the Hoover with the idea that up the of the of S. Government Printing Office, Washington 25, one House came with exception is the Government Operations Branch — V there is the moment between on Organization Documents,1U. any mergers. At Organization of the De¬ on Executive kind has beentaken in respect to the Commis¬ sion, with one exception. Board Reserve of action profit t has attempted to broach a com¬ Commission Compromise stock calm—his out various it is for all practical pur- So o u Bill Martin Chairman Federal of the one explained it privately. poses i t h w political Congressional proponents of the inter¬ preted the intent of Congress— for any court to see—contrary you not the sion of Hrst make price of "And undo says the House it, the bill probably be enacted by both repeal the Supreme Court legis¬ lation (such legislation is not subject, like Congressional bills, to could they was Sam the strategy after two hours and explain of even was that learned "liberals" had gas. Houses. This practical hay out of calling the bill on not "com¬ "liberals"; was political The that may Rayburn. vote it out, a all. finally have go at the natural gas bill since it may be ordered by Speaker can the to raise the | The House was brilliant a Speaker for the this "compromise" was not such See Gas Bill Killed Sam after promise," which words, you can never tell when a bright young boy might think this was hot stuff « the local prices whilst achiev¬ regulation certainly ernment middle-man take ing them up like useless last year's Christmas presents, with pretty form to exempt notwithstanding. Even in this emasculated form, the bill would professedly preserve the principle of exemption of loeal production. heaps for the discarded propos¬ als of yesteryear, emasculated its seems is there in just dropped ten points and not one sound out of him!" duly," instead of, oassage. In bill leadership. the are final the Sneedle "That therein, several certain in the outlook for legis¬ lation ardor Speaker's statement for the bill bill. ties its hand, the indus¬ try also thinks that its supposed two great Democratic stalwarts in Congress, Speaker Rayburn arid Lyndon Johnson, * Senate Majority Leader, are notably lacking rin diligence and energy in supporting, this bill, even though both are Texans. The in getting that kind of a bill some in On the other politi¬ same Publi¬ partment of Defense—Commis¬ the Mr. Eis¬ cooled amour. Legal subscription rate, $17.50. copy; Business 1952, has rily Senator Fulbright's newest ly, nobody has yet in the House In Inc., 18 Rose Street, New York 38, N. Y. — $2.00 p> r The oil and gas dearly in so — May issue of the Antitrust cations, com¬ for which loved industry, > Fair Trad¬ Diamond a even "compromise." sition, but of the fact that this particular crowd of A. Bulletin—Federal hitherto any affirm¬ ative support from the Admin¬ promise, and notes complete absence of Interest in the Fulbright It isn't the 4 unanimously industry Problems ing— Sidney credits Treasury Secretary over-the- there House the no Antitrust words, the regulation rather than via the producer. ' In Bookshelf rate - Some tion. yet In other for the regu¬ for future would be made via the pipeline companies complained that counter issues to escape with cases. or¬ on Man's whereby, while the; out connection quence of Chairman Fulbright's 'inquiry earlier this year into the level of securities Business "compromise" was production would not be regulated, the pipeline would be regulated, having to prove it paid fair prices for the gas in conse-- a as a local reporting requirements. accidental . Government. However, -•> than 500 stockholders more gas Federal would subject corporations with and Congress natural conduct c 4>