Full text of Commercial and Financial Chronicle : June 30, 1955, Vol. 181, No. 5442, Section 1

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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

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gas.

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that

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Sam

after

promise," which

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the

local prices
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ernment

middle-man

take

ing them up like useless last
year's Christmas presents, with
pretty

form

to exempt

notwithstanding.
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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.

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bill

leadership.

the

are

final

the

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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

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dearly in

so

—

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industry,
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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

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the

4

unanimously

industry

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ing— Sidney

credits Treasury Secretary

over-the-

there

House

the

no

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words, the regulation

rather than via the producer.

'

In

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rate

-

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tion.

yet

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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,

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than 500 stockholders

more

gas

Federal

would subject corporations with
and

Congress

natural

conduct

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