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V
ESTABLISHED
1S39
Reg. U. S. Pat. Office
*
Volume 185
Number 5644
New York
10 1957
JUN
7,: N. Y.^Thursday, June 6, 1957
i;.
,•/
Price 40 Cents
Copy
a
ADMINISTRATION
.IBRARY
EDITORIAL
The Five-Year U. S. Potential
We
Our Stake in Middle East
By LIONEL D. EDIE*
By DAVID ROCKEFELLER *
Se
Certain difficulties that the
Chairman of the Board
Lionel
refunding
have attracted
purposes,
good
a
deal of attention. Officials have taken the trouble
to
deny that there has been anything in the
ture of
a
"crisis"
term.
"collapse" of government credit
in
the
They
mains that
of
are,
deeper
or
to
re¬
tight,
relatively tight,
or
finding it
are
existed, for
in
necessary
a
money
will attract funds in
pay
a
building; and
profit margins when realistically calculated.
un¬
should
I
like
to
give
special
by
a
can
course,
get all the money it needs
hedge
there
are
that there
are
when
Well, to
In
in
mar¬
market
frame
many
O.
Lionel
t
Edie
.
the
enlarge the supply of available funds
operating
statistical
by fiat, as it were, the Treasury draws funds
away from the market by means of higher rates
only at the expense of the others—and in addi¬
tion drastic changes in the rates paid by the
Treasury could hardly fail to unsettle the gen-
American
heading:
attempt
I
the third part might
and
answer;
this
under
which
Dynamic
"The
to
events
to
Business Over the Next Five Years."
part one,
laying the foundations.
or
even
months, but rather the
certain
basic
which
trends
to
assume
facts
long-term
cause
of recent
of
and
emergence
the Middle East
role of new and lasting
a
importance.
Why is it then that developments
,
David
in the vast and far-away area of the
Middle East should affect banks and
bank
a
in the
customers
an
answer
strategic
to
center
this
of
our
country?
We have
of the world.
areas
Continued
on
page
a
series of mili¬
us
These
recently
the
and
bases,
Continued
*A
talk by Dr. Edie before the National
Board, New York City, May 17, 1957.
NOW IN
afforded
are
Industrial
address
of
Conference
the
by
Mr.
Bankers
Arkansas
1957.
the
;
REGISTRATION—Underwriters, dealers and investors in corporate
a
complete picture of issues now registered with the SEC and poten¬
tial undertakings in our
State, Municipal
36.
"Securities in Registration" Section, starting on page
and
U. S. Government,
Municipal
STATE
!i§i
MUNICIPAL
and
Securities
telephone;
CHEMICAL
department
ST., N.Y.
DEALERS
•
ON
and
AVAILABLE
15 BROAD STREET, NEW
OF NEW YORK
Company
YORK 5, N.Y.
•
01 4-1400
120
Bond Dept.
Teletype: NY 1-708
34
TELETYPE NY 1-2ES2
Banks
ottices
Stock
Ordc-rs
Executed
On
CANADIAN
NEW YORK 4. N. Y.
DEPARTMENT
'■
r
4'/i%
Due
DIRECT
WIRES TO
for California's
Expanding
Price
1,
1981
States
United
98.75
Economy
Debentures
December
in
,
Dollars
yield 4.35%
to
BRIDGEPORT
•
PERTH AMBQY
:
|
MONTREAL AND TORONTO
NEW
YORK
1 NORTH LA SALLE ST.
CHICAGO
I MUNICIPAL BOND
Domhiox Securities
Goodbody & Co.
115 BROADWAY
BANK
Municipal Bonds
Quebec
40
Exchange
Place, New
Teletype NY 1-702-3
.
York
DEPARTMENT
Mmtk of America
Grpokahqh
MEMBERS NEW YORK STOCK EXCHANGE
...
.
coast
to
Hydro-Electric Commission
AP
DEPARTMENT
Teletype NY 1-2270
STREET
coast
Guaranteeing Quebec
Canadian Exchanges At Regular Rates
Exchange
g}<Hithu>e4t
25 BROAD
from
$200,000
Brokers
Payable
American
DAUAS
'.
.
Chase Manhattan
5
Maintained
and
SECURITIES
Commission
New York Stock Exchange
Markets
CANADIAN
1832
Members
q$OtU/u0€At COMPANY
•
BOND
-nance
BROADWAY, NEW YORK
Province of
T.LWatson&Co.
ESTABLISHED
Active
Dealers,
**«
i»
EXCHANGES
SECURITIES
FIRST
.
REQUEST
Harris, Upiiam &
Burnham
Net
the
A,
THE FIRST NATIONAL CITY BANK
To
of
4
THE
CABLE: COBURNHAM
INVESTMENT
"market review"
ARE NOW
BROKERS
MCM8ER? NEW YORK AKO AMERICAN STOCK
30 BROAD
Bonds and Notes
'V
UNDERWRITERS
BANK
bond
Public Housing Agency
COPIES OF OUR
BONDS
HAnover 2-3700
corn exchange
32
page
Annual Convention
Association, Hot Springs, Ark., May 22,
before
Rockefeller
in
State and
formulated
on
34
♦An
30
SECURITIES
securities
DEALERS
page
my
main
tary bases there that are an integral part of our defense
This subject
on
To
involves two
question
.
Continued
RockefeUer
I.
First, the Middle East is one of the key
considerations.
for
Let
mentioned
emphasize tpday is not the
be placed
Consequences
have
we
the hour
of
news
structure.
turn
in
lives.
mind,
get
the front pages of our newspapers in
We have seen the seizure of the
on
these events may seem
another they have a
important bearing on all of
but
I wish to
sense
of a
probability of ac¬
complishment. The discussion of this
topic divides itself into three parts.
/The first part is laying the founda¬
tions for the analysis of the problem;
the second part is thfe narrative of
by
to*
have indeed been dramatic. Yet what
So, as I use the word "potential"
today, I mean by it something that
we not only have the capacity to do
but something that we are likely to
see
accomplished in the next five
years.
I use the word "potential" in
procedure
on
efforts
sense,
The
the
and
Russia's
on Egypt, the U. N. cease-fire
clearing of the Canal, and
recently the crisis in Jordan.
one
our
mind.
of
of
Canal, the attack
very
doubtful
a
space
remote
that leaves the list¬
me,
operations patterned
the
more
they
prediction.
borrowers with obligations
in the hands of a large variety of investors and
investing institutions. Assuming that the banks
ar^e not to
because
and
Warns
past six months.
Suez
the word "potential" they do not
want to be understood as making a
other
in this
other bidders in the
clause
Bank.
Developments in the Middle East have occupied sub¬
stantial
word,
Some people hide behind
vague.
a
ket provided it pays enough for it. That, we be¬
lieve, is all to the good, but it must be recognized
that
the
use
that the Treasury
even
»
promote its interests.
and
,
doubt, of
attention to
World
of
in
somewhat
is
demand for funds.
no
*
a
those
thing that
substantial margin balancing with the
There is
of
realized
ener
not
present level of relative poverty. Suggests establishment
the
saving is
many
Rockefeller points out importance of the Middle
East, both politically and economically. Maintains oil
provides the great opportunity for raising area from its
I find that to most people it suggests some¬
is a possibility, but the chance of its being
"potential."
rates which
market where
Mr.
use and for
mitigation of wage inflation. Ex¬
confidence in long-term outlook for producers'
durablef equipment and residential
market. They
competition with
; seekers after funds in
overcrowding the productive labor force.
degree that has not
good while past to
a
:
activities, with structure
likely
are
have, trouble managing the
r
Chase Manhattan Bank of New York
efficient
of the
right, but the fact
Executive Vice-President
Company, Inc.
Regional Development Authority to channel the
funds of the large oil-earning nations into productive ■#
presses
course,
&
Cites benefits of constant increases of available power,
and vast research and developmental programs for its
wieldy debt that somehow has to be managed in
this
without
tion
na¬
or any
sense
they have been having, and
continue
to
broader
Edie
Discussing the future of American economic activity,
Dr. Edie maintains population trends provide a "dynamic
growth push," with an enormous stimulus to consump¬
| having in financing its requirements, particularly
•for
D.
Treasury has been
NATIONAL
5, N. Y
WHitehall 4-8161
300
JSVYnos ASSOCIATION
Montgomery St., San Francisco, Calif.
\
2
The Commercial and Financial Chronicle
...
Thursday, June 6, 1957
(2614)
.V
!■
/# The Security [ Like Best
Brokers, Dealers Only
For Banks,
A continuous forum in which,
as an
banks,
bro¬
New York
New York Hanseatic
a
dealer
machine
office
ent
an
1920
Associate
Member
Exchange
Stock
York 5
120 Broadway, New
today
Price Range
a range
Manual and "Electrite"
Teletype NY 1-40
WOrth 4-2300
•
SAN
PHILADELPHIA
keeping
FRANCISCO
to Principal
Wires
of
line
lar
CHICAGO
•
BOSTON
Private
.
H.
Div.
L.
'
Since 1917
Stock
Stock
TEL. REctor
Trading Markets
airatmos¬
of
advantage
the
Air Control
Products, Inc.
its
the
lerbach's
in
purchase
full
chasing
division
seems
about
All
in
Volume
share
to
Natural
Corp.
Common
..
69
ESTABLISHED
37 Wall St., N. Y.
$9,062,162
of
(record
from
to $720,528 from $522,-
rose
Tel. HAnover 2-4850
ating ratio
was
that the oper¬
substantially im¬
net sales vs.
sheet,
The balance
of the end
of 1956 disclosed a strong position,
Swan-Finch Oil
Standard
Sulphur
,
.
rent
Pecos Exploration
current
times
assets,
liabilities.
cash and
constituted nearly
Wyoming Uranium
American Tidelands
the
•
beginning.
share
clared
CAPPER & CO.
1 Exchange PI.,Jersey City,N.J.
HEoderson
t
Dlgby 9-3424
Feb. 15.
dend
were
Dec.
March 1,
2-8570—'Teletype JCY 119
Direct Wire
cur¬
receivables
50%.
During
7,
paid.
1956,
was
paper
more
even
rap¬
»
has
been
approxi¬
population in¬
in
1940
the
of
west¬
Fibreboard
capita con¬
by
increase in per
an
sumption
11
paperboard
of
ap-.
proximately 75% for the country
as
whole.
a
In recent months there has been
the
in
readjustment
industry
backlog
cline
in
due
of
going
to
orders
and
production.
to
of
be
in
de¬
a
This
however,, is
believed
on
reduction
a
read¬
generally
temporary
a
nature, 'withthe long-term growth
aspects
of
the
industry
promising.
There
been
pickup
a
good
very
has
recently
in
the pro¬
the
the
year
A fifth, de¬
was
paid
1957, to holders of record
The latest
the
duction of paperboard.
quarterly dividends of YLVz$
•
per
and
quarterly divi¬
paid June 1 to holders
of record May 15.
During the past five years, net
Plant
are
and
Raw
paperboard is fabricated into
end
products
and
the
company's
products
are
used
primarily in the food field. The
customers
include
some of the leading organizations
in the
industry.
Self-service in
the distribution of goods at re¬
facilities
modern
to
and
San
paper
The
other
with
two
area
new
such as drugs, cloth¬
hardware, etc.
The paperis
container
offices
remaining
practically
at
stationary levels for three
r
years
appear to be stirring due
improved Japanese economy.
now
to
For
current
Call
information j
: '
write
or
Yamaichi.
Securities Co., Ltd. I
Established
Home
Office
Brokers
<Sr
111 Broadway.
Tokyo
1897
—
Branches
70
Investment
Bankers
N.Y.6 COrtlandU-5680
woven
the fabric of
inex¬
mod¬
*RADIAT ON INC.' A"
•McNeil mach. & eng.
•british industries
•seismograph service
civilization.
Inasmuch
as
approximately two-
Fibreboard's
of
raw
*
ma-r
subsidiaries
company s
•
of
paperboard prod¬
ucts is becoming of growing im¬
portance and the experience of
Fibreboard in this field is a sig¬
nificant element of strength in the
one
includes
a
paper
& Mcdowell
west
and
Detroit
Stock
American
these
future
Exch.
Exch.
Exch.
Stock
•
Exch.
(Associate)
40
Exchange Place, New York 5, N. Y.
in fee 80,000
Nevada, containing about 1,-
Stock
York
Midwest Stock
Tele. NY 1-1385
Main Office:
of timber lands in California
39 South
LaSalle St., Chicago 3
board feet of lumber,
250,000,000
but
New
Members
Phone B0 9-1314
The company owns
acres
'
request
held in
are
At
use.
the
for
reserve
present
time,
wood
requirements of about 140,annually are largely
through the purchase of
wood
chips, lowgrade logs and
waste wood in the open market
under long term contracts from
mills in the area where plants are
located.
The company is inter¬
ested
in expanding
its holdings
of virgin timber lands and acqui¬
sitions are expected as favorable
opportunities present themselves.
The management of Fibreboard
is an energetic one and plans to
fully
keep pace with industry
growth. A five-year $50 million
expansion program has been un¬
dertaken. An important phase of
this program is the contemplated
erection of a large new pulp and
paper mill, probably in conjunc¬
tion
with the
important timber
000,000 feet
satisfied
company
on
This company
material
ous
the Pacific Coast.
would provide the
the
for
would
converting
it
plant
take
into
carton and container
the
the
and
out¬
LAMB0RN & CO., Inc.
99
WALL
STREET
NEW YORK
5, N. Y.
SUGAR
Raw
ll".
—
■■
Refined
'
—
Liquid
.
Exports—Imports—Futuret
Dlgby 4-2727
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
vari¬
products
which it manufactures.
18-Year Performance of
35 Industrial Stocks
of
mill in California.
large waste
the
on
coast.
put,
company
equipped.
Francisco,
plant
position
company's
upon request
upon
STRAUS, BLOSSER
manufacture of
the
well
Prospectus
Memo
ex¬
clusively handles the collect ng,
sorting and baling of waste paper
at points convenient to the mills.
The use of waste paper in the
Fibreboard
which is the only integrated wood
pulp and
has opened up a
of outlets in other
moreover,
Materials
The two largest plants are located
close
branch
our
various
raw
Plants
stood at $13.84 vs. $13.23 at
year
four
•
Of
The net worth at the end of
<
Leon Land & Cattle
•
Wz
been
having
assets
current
than
served
justment,
as
been few industries
80%
an
states
ern
some
noted
be
proved at 8.2% of
6.1% a year earlier.
0\*
paper
grown
since
crease
$370,528
$272,432.
will
It
mately
Gross
432, and net after taxes to
1930
in
There
serves.
$8,969,549
hand,
ftreetieoXouvpcm^
time is
packaging
present
idly than the industry as a whole
because of the rapid population
growth in the western states it
sales
reported a year
profit, however,
owing to rising costs and wages,
remained practically stationary at
$2,670,840 vs. $2,668,434. - Net income
before taxes, on the other
from
Artists Corp.
net
1956,
year
a
earlier.
6's of
board has
reported
cents
91
vs.
the
For
rose
Units
the
Whereas
packaging industry in the past 15
and the business of Fibre-
for 1955.
Rights
;
pur¬
years
preceding year. The 1956
balance is equivalent to $1.23
per
the
dynamic
more
after taxes, rose
earnings,
after
/
initially.
the company has 11 such plants in
the far west and two in the east.
The
to
JAPANESE
business for
of additional
1-1557;
/STOCKS
moving
shipping container
new
NY
in
and
.
There have
$370,528 from $272,432 reported
net
International Business
United
Neumark
paoerboard and 25% in build¬
ing materials.
'
.1
Mobile, Ala.
Direct wires
located
paperboard converting di¬
vision is of prime importance and
of the
Arthur J.
company.
75%
American Stock Exchange
New Orleans, La. - Birmingham, Ala.
terials consist of waste paper, one
dynamic than the
at
area
The company is
gram/ A
-
com¬
business
Angeles
ahead with its modernization pro¬
thirds
and
Record
Machine
Artists
-
the
more
Los
Denver.
ern
consid¬
larger
pany
for the
United
a
erably
Departments Last Year
to
Ontario
n
the
Oregon and Washington. There is
also
a
milk
carton
plant near
tricably into
acquisi-'
tion of
clear.
Trading Markets
Gas
i
Other major plants are
in
board
This
volved
York Stock Exchange
Members New
HAnover 2-0700
shipping containers.
The
folding carton plant in. Stockton
is regarded as the. finest, west of
the Mississippi, and is the equal
of any such type of plant in the
country. '
,
ing,
Coast
West
'
Steiner, Rouse & Co.
Mem.bers
industries,
Fibreboard
a
production has shown
this
of
New York City.
/://>/v!'
and
whole
invest¬
they had
company.
'■
'
19 Rector St., New York 6, N. Y.
tail,
a
predecessor
company's
business
was entirely in bulding materials,
the approximate division of the
Net
Northern
half
in
f I'''"'
company's
Products, Inc.,
and
LD 33
Machines
from
and
Lynchburg, Va.
Clinton
is
interest
control systems.
pansion
Scott, Horner & Co.
Tele. LY 62
history of this
unique.
Formerly
production' facilities,
with new and promising products
now being developed,
the contin¬
ued substantial growth and ex¬
Colony Life Insurance Co.
Neumark, Partner,
The
City
purcnase
ment
tory
J.
the company
healthy and steady increase, and
pending contracts and orders for
1957 are large. With five labora¬
Gas Company
''
Products Corp.
Paper
(Page 2)
million
of Crown Zel-
a
Alabama-Tennessee Natural
First
NEUMARK
J.
Paper Products Corporation
name
joint
Volume of
Bank of Virginia
Bought—Sold——Quoted
plant in the San Francisco area
has just gone into operation and
is expected to handle $8 to $9
as
Pabco Products,
Inc.,
present parent company ac¬
tually derived
capacity
additional
with
in their
81/4
9%
known
years' experience
in the design and manufacture of
fine
precision
instruments, the
company's newly developed damp
rate gyro has already been well
received by aircraft and missile
manufacturers, and is being des¬
ignated as a component, to be used
2-781S
51/2
the
Backed by 13
BROADWAY, NEW YORK 5
120
43/4
corporate
company
ments.
Exchange
Exchange
8V2
11
0.50
The
pressurized
control, * is
becoming a
growing factor in the field of air-r
craft and guided missile instru¬
Members
York
American
»?•
9%
f 0.871/2
Fibreboard
pheric
New
16
0.50
New York
field of
conditioned,
|fcpONNEII&fO.
0.50
.
Partner, H. Henlz & Co.,
Missile Instruments
with
and
71/4
ARTHUR
equipment
plant
a
10 Vs
f Includes 371/4 cents extra.,
served, as out¬
lined in the preceding paragraph,
R. C. Allen now in production in
SCRIP
&
0.50
and
Aircraft
of
In addition to the wide
office
8Y4
safes,
Field
Guided
Specialists in
10 Vz
Six months.
burglar-proof
money chests and insulated files
for every plant and office need."
The
RIGHTS
*
book¬
statement machines
and
fire
—and
Cities
*0.25
1952
a popu¬
—
model
desk
New /York
Inc.,
H. Hentz & Co.,
—
Corporation
Co.,
—Arthur
Annual Price Range
Dividends and
of products
Year
full keyboard adding machines
for business—ten key adding ma¬ *1957.-..
1956-„_.
chines for all types of retail trade
1955...:
—cash registers to fit every purse
1954
;~
and every purpose — the world's
most advanced typewriters, both fl953
wide
so
Louisiana Securities
T.
Counter Market.
offers
"serving the independ¬
is said,
offers
hav¬
cents
Machines,
Business
(Page 2)
Fibreboard
share in the Over-theI think the stock
excellent growth poten¬
a
&
City.
shade
a
"the only company"
tial, with a current well-protected
full line of Business
dividend return of cloSe to 5%.
"No other company,"
Machines.
it
$11.00
that the
is
Company
offering
American
Alabama &
Greene, Man¬
Research Dept., Amos
of
ager
Treat
available at about
is
stock
The
The Management states
next trade?
cents—87 %
50
above
Allen
Inc.—Charles
ing been paid in 1953.
City
Machines, Inc.
R. C. Allen Business
"dividends
and
share,
Amos Treat & Co., Inc.
dealers in every sec¬
United States,
almost instantly. Why not take
advantage of such facilities on
C.
R.
earnings have averaged $1.25 per
fManager; Research Department
the
Established
»
Their Selections
are not intended to be, nor
offer to sell the securities discussed.)
CHARLES T. GREENE
reaches
of
your
they to be regarded,
nationwide private wire
kers and
tion
each week, a different group of experts
field from all sections of the country
(The articles contained in this fornm
.
,«.are
tions, faster.
system
-»
.
Week's
This
coverage
Our
t
'
Forum Participants and
participate and give their reasons for favoring a particular security.
of potential
Over-the-Counter markets
can often mean better execu¬
1
'
'■
in the investment and advisory
Try "HANSEATIC"
Wider
'
mill
and
converting plants for both carton
Research
Very
company
and
active
FOLDER
Development
in
research, "* the
jhas pioneered the de¬
velopment
,
of
many
new
on
page
30
REQUEST
National Quotation Bureau
Incorporated
paper
46 Front Street
Continued
ON
New York 4fN.Y.
Volume
185
Number 5644
The
...
Commercial and Financial Chronicle
(2615)
Seven
Ways to Prolong Prosperity
-
•
The Five-Year U. S.
dations of prolonged
prosperity.
formula for preserving
Our
easy
fiscal controls which demand
government
and
.
vi
V
subjected
I
to
measures
political considerations taking precedence
Importance
are
costs of
operation is real indeed"
as
result of inflation.
a
The United
Pan
States, Canada,, and
American
states
coming increasingly
'social and political
Fluid
we are
and
more
dependent
upon
one
an-
other.
We
suffer
when
all
one.7 of
makes
;
rious
us
a... se-
mistake,
and
~
-
But
,
others—and
of
when
rate if
we
manage
telligently,
and
good
and
sense
estate
and
are
ex-
.
have
we
activities
x>f
funds
But
purposes.
al-
is one
,the Prulargest part
the
investable
our
gage
allocate
rate.
values
back—-and at
tliat
why we
reason
dential
likely
surprising
the end, real estate
2^5#?
good
are
to
the
mort-
extreme
highs and deep lows play havoc
with the industry, nevertheless.
.,
For
this
reason,
anyone
con-
cerned
in an important way with
estate-anyone who depends
upon it for his living
must keep
real
weather eye
|0n economic trends.
a
The
to
capable real
be
as
unuch
estate
has
man
general,
during
have
we
enterprise
the
system
the
interested
—A.
A.
great
one
have
and
some
Speaking
M.
initiative.
We
new
come
pregsi0ns
taining
we
June
Some
forces
that
about
They
to
dustrial
sumers
great
with
forebod-
present prosperity.
.expecting
the
stock
drop substantially, into
suffer,
con-
are
market
filled
our
profits
hold
to
off
pretty
lead
on
buying,
skyscrapers to stand
completion, and the en-
tire economy to shift into
They
sure
fear
that
it
the
because
economy
reverse,
they
feel
can't
keep expanding, that prices
just
can't
,
Checkbook
the
* An address by Mr. Shanks before the
America^" ins^utut.
close
;
Gold
Are
thi*
*
ures—such
.1
controls
for
•
Nashville
•
There
As
neces-
S.
to
#
Housing
QUINTA CORP.*
jg
Keyes
Advised About
18
Prospectus
on
request
Changes Wrought by
Babson
19
£
*
too
*eF ha£e the
'courage to take
'
20
aU
Vital
d
26
them
are
Regular Feature*
/
Dealer-Broker
-
,
economic* situation*.
A
.
be
en-
Govern-
ment
expenditures
and
policies
0bvi0usly have an immense influ-
j}uring
when
economic
period
a
of
situation,
•
employment is
faiiing Qff and capital investment
industry is being curtailed,
tures
can
government
in
A—Coyer
go
a
the
long
way
toward
other
hand, in a
period of full employment, when
are
high, the government
Continued
Otl
can
well
page
24
Exchange
TELETYPE N. Y. 1-5
Chicago
Schenectady
•
>
,
Glens Falls
Worcester
.
;
i.
",tt
"y'
*•„
San Jacinto Pet.
'
•
..
'
•''
'
*'
•
r
.
;
__L
48
.
,
v
•>
Sprague Electric Co.
8
Recommendations
Loans
and
8
Disinflationary
i:
Mutual
Funds
24
Singer, Bean
Mackie, inc.
13
&
Bargeron__„ 10
Indications of Current Business
Activity
46
___-
HA 2-0270
40
Exchange PI., N.Y.
—----
Teletype NY 1-1825 & 1-4844
Notes
News
About
8
Banks
Observations—A.
and
Wilfred
20
May
t_
Public
Utility
"
Report
Securities
Security
Salesman's
The
Market
The
Security
State
Trade
of
Washington
.
and
L___
Twice
t
Park
Place,
Weekly
York
HERBERT
D.
4
1
c/o
Thursday,
6,
N,
Y.
•
corporation
and
Other
Chicago
news,
ary
25,
clearings,
city news, etc.).
Offices:
3,
111.
135
South
(Telephone ST&te
Salle
C.
Eng¬
as
1942,
St.,
2-0613);
United Western Minerals
Vitro
second-class
at
Preferred
by William B. Dana
the
matter
post
office
Corp. of America
Febru¬
at
New
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of
Union,
\
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Canada,
Bank
$40,000
and
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of
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per
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in
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—
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'
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1957
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Every Thursday (general news and ad¬
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state
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Company
SEIBERT, President
June
1957
Reentered
Dominion
records,
Gardens,
Edwards
Copyright
Publishers
7,
Diapers'
land,
SEIBERT, Editor & Publisher
WILLIAM DANA
Portland Cement
48
COMPANY,
New
Lake Ontario
2
Industry
REctor 2-9570 to 9576
-
16
Best
Reg. U. S. Patent Office
DANA
Sabre-Pinon
31
You—By Wallace Streete__—________
and
Quinta Corp.
36
40
FINANCIAL CHRONICLE
B.
:
You
and
Belle Isle Corp.
47
Offerings
Corner
I Like
The
.
/
43
—
Registration_!
Security
.
'
16
Now, in
Prospective
Dallas
28
—„——_J__
Railroad Securities
Securities
to
Los Angeles
5
...
Reporter's
Direct Wires
Philadelphia
Chicago
Bankers..
Our Reporter on Governments
Our
,
Co.
''"vs*
A;'vv;i.
Government
Measures"
expendi-
minimizing the economic adjustOn
•
-
_
.
Investment
"Decline
adjustment,
industrial
substantial
JCY 215
Pacific Uranium
!
j___
From Washington Ahead of the
News—Carlisle
of
•
.
HEnderson 4-8504
Teletype:
Belle Isle Corp.
'
wil]
few .of
a
St^ N°\X
should
the
DIgby 4-4970 V
t
Coming Events in the Investment
sense
foundations
government
on
Exchange PI., Jersey City
by
facts,
use monetary and fisUcieg to inf,uence the over-
ence
Members Salt Lake
City Stock Exch.
Spokane Stock Exchange
1
Convertibility Seen
(Letter to Editor)
couraged fo
,
J.F.ReilIy&Co.,Inc.
-
ea£y
jf
^hem
^
1
22
WeJSee It (Editorial)
Einzig:
n0
*
Money Discussed by Charles I. Stewart
••
invoive
and
economic
over
is
*
ijfrid Insurance Stocks___i
A ' )'J Vv
n<r
Business Man's Bookshelf——
ST., NEW YORK 4, N. Y.
•
Inflation
Bank
formula for
preserving prosperity, but certain
New York Stock
*
of
CORPORATION
15
■_
31
A
PREFERRED STOCKS
Boston
SABRE-PINON
Rebellion
- Soft
and
Strong Spots Keeps Economy
Steady, According to First National
City Bank "Letter"—
0ften political considerations take*
precedence
TELEPHONE HAnover 24300
Albany
14
and
Counterbalancing
V
monetary and fiscal
example — demand
governnient action and
°olitlcal considerations,
Spencer Trask
BROAD
URANIUM
29
25
25
PACIFIC
12
Where
Purchasing Agents..—
WILLIAM
Members
Are,
___
Stop Raids
Threat
The COMMERCIAL and
have specialized in
We
■
Standard to Provide Full
Published
For many
years we
to
Better. Business Prospects
Detected by
?'
-
as
Editor)
George F. Bauer
.
Ap! capital expenditures by industry
praisers,
and
the
4th
Pan
American
Appraisal Conference, Chicago, III., May
Where
:
•
_
Housing"—Kenneth
Cash
vs.
(Letter to
measures, are two different
A11 of the important mCaS:
ment.
,
,
Economic
to
what to do, and taking the
sa
on
new
Cmpty
the
•
depressions.;
inevitable, but
possible, because knowing
The
some
MINERALS
11
Transitional
Mexico's Prosperity Cited
by Hf Eugene Dickhuth of
.American Trust Company___&l^i
controls,
take
A depressi0n is not
„
,
people-including
exp^rts—-are
ing
of
—
About
Graduates
NSTA
Future?
,
Impact
Nadler—
that,
close
Here
'
of the
Face
Automation—Roger W.
;•
be avoided by mainwatch over i the
can
a
prosperity.
What
UNITED WESTERN
Cole__n__
"The Future of
difference:
have learned to
we
lion
•
WHitehal! 4-6551
10
depression
big
vital
the
t
Banks
Imberman
—Albert
^
same
which
the years before
is
,trengthen
as
Plain
understand the system
better, in¬
we
we
and
in
Telephone:
V
'
all
concerned
with the general situahe is with his own busi-
99
*
in
free
In
^state values often tegin to suffer,
and real estate
In
7
the
to
courage
Obsolete Securities
Dept.
WALL STREET, NEW
YORK
■
__1
,
healthy to running the system these
days:
periods, real estate is likely to it doesn't
run us.
;
»
t
boom, sometimes beyond safe limWe have
learned, among other
its.
When the tide turns
things, that-a serious downturn
times even before the
general sitnot inevitable; that serious de-.
.uation falls ,.off noticeably
-real
a
_1
.
there
changes.
decelerate at
Growing Corporation
a
Cobleigh„_.i——9
Keeping Stockholders Informed
affairs in-
our
if
with cash!
out
Going?
6
Economy: Where We've Been,
We're Going—Osborn
Elliott—
'
moderate'
a
Go
Our
apply
gov-?;
ernment and in business—that we
know will be effective.
for
values
to
Are We
Come in with junk
—4
Danger in Nuclear Power Plants
S. Vance.——:.
Changes—Marcus
of
real
tho?e economic controls—in
But
tra-sensitive
economic
one
economy can continue to
and
activities-
serious
a
expand indefinitely at
had
us
Real
.to
Tyson__
THE INS AND OUTS
3
^
Century—Ira U.
Commercial
setback,
that the
for
takes
any
Shank*
am
necessity
step -forward.
M.
our v
no.
an;; important
Carrol
pushing
I
Shanks—
Is There Any
;*
them^feel that there* is.
all
we
benefit
;
all
are
C.
.—Cover
—
more
,
we
Inflation—Robert
M.
Business—Why? ("The Lonesomest Man in the
World: The Small
Security Dealer")—Elmer E. Myers—
luck,
economic,
an
r"becoming
i;
hold,, that
D; Edie—_
AND COMPANY
y No New
-
entity;,
V
be-
are
of
Financial Planning to
C. Porter
—Harold
the
Potential—Lionel
of
—Robert
.*r
over
Believes real estate has reached the
turning
point and expects housing starts to increase to one million for
full year of 1957; and concludes his firm's
$13 billion asset
figure is "50% an economic delusion—but the increase in
..
New Kind
Page
1
i
Prolong Prosperity—Carrol
.—Harlan Hatcher
economic facts.
r
to
^
\
Rockefeller—..—.Cover
Business, Congress, Education:
Where
intelligent action is often taken haltingly and tardily,
placing the economy in jeopardy, because necessary
monetary '
'
Ways
llCHTfllSTEl
». s.
r;
cour¬
ageous,
'*>
"
v-
,
Our Stake in the Middle
East—David
Seven
it'
Articles and News
,i-:
steps recommended by Prudential head to strengthen the foun-
Admitting there is no
prosperity, Mr. Shanks asserts
.
)
••
'
Advocacy of governmental compensatory spending and a con-,
'tinuous fight against inflation are
part of the seven specific
'
$
v
President, The Prudential Insurance Company of America
*
INDEX
ijr«
By CARROL M. SHANKS*
3
SALT LAKE CITY
The Commercial and Financial
Chronicle
Thursday, June 6, 1957
...
(2616)
4
to America is found in
come
Our New Kind of Inflation
Committee
Corporation
Chairman of Finance
States Steel
United
is
'
?
great
wars
ceded
from
the
the
Expressing doubt that any good or lasting solution will soon
be achieved to stop tlie inexorable march of what is described
as
put new kind of cost-push type of inflation,, Mr* Tyson
A
brand
not come
fore—it
new
yesterday or the day be¬
quite a while ago.
■;,.
But realiza¬
;
its
of
and
two
the
two-thirds. For
farm and
declined so that the
index " appeared
stabi¬
march.
—
So much for the price
even
with
familiar
really
World Wars gave
it.
are
able
because
the
impetus carried on
C.
squeraded
for
Jys«.n
a
while in
raiment
the
of
an
old and familiar type.
Thus
during the World War II period
considerable wage and price in¬
flation. was understandable as the
Our
war
.
then
rather than price inflation
pulling up costs through competi¬
tive
bidding lor materials and
which
the
streets, and public and private utilities. According
Dodge Corp., the total dollar value of contracts
awards in the first four months of 1957 equalled that of the simir
tlie lowest point in nearly
exception of periods when the industry was
crippled by strikes. Steel men have already written off July as
the year's low point and August may not be much better.
Sep¬
tember, however, is expected to reverse the trend, states "The
Iron Age," national metalworking weekly, this week. *
The mills are being realistic about July and base their ap¬
praisal on the rate of incoming orders for that month. They are
also aware that many steel-using companies will be shut down
second postwar
1
'
,
P
Evidence from Prices
j
*An address by Mr. Tyson before the
National
41 st
16,
Industrial
Annual Dinner,
1857.
Conference
-"X;
•
Board's
.
"■1 J.
.
V
•_
'»/ -j
The
;
ni^t famiUaf eyidohce that
New- Yot-k City, May
drastically new has
^; j & something
In
speed.
ing
:
v
this
Bureau of Labor
;
the
respect
inadequate. They, do not
the rapid, growth of niany
cover
benefits.
fringe
the
In
case
U. S. Steel's wage earners,
*
•iminimum.
'
-
CANADIAN
in 1940.
is
We offer
to
cents
10
than
50
cents
rate of about 8%
age
crease
vestments*^Our facilities include;
have
in
Last
them
A
uniform.
minor
the Bureau of Labor
rose mark¬
edly from 1940 to 1956 — about
200% on the average. There were,
invited.
course,
of
change
wer
McLeod, Young, Weir
Company
differences in the rate
but such differences
not too material.
This rise in
all these wage series explains why
costs other than employment costs
tend
to parallel the inflation in
employment costs. The goods and
services purchased from others—
LIMITED
Investment Dealers Since 1921
the
TORONTO, CANADA
Montreal
Ottawa
Winnipeg
Vancouver
Hamilton
Calgary
Kitchener
Sherbrooke
Windsor
Edmonton
London
New York
municipal
securities
capital equipment purchased
—the taxes paid—all have embod¬
ied in them the paralleling wage
inflations. Wage costs in consoli¬
dated industry
represent threequarters or more of all costs.
A
third
and
most
disturbing
feature of the wage inflation is
sales
The
Continued
on
page
17
unfilled
...
;
.i
was
all
orders
declined in April,
Commerce reported, while new
seasonally-adjusted
department's
manufacturers sold $28,500,000,000
index
revealed
worth of goods in April.
that
This
drop of $300,000,000 from the previous month's level with
in the durable goods sector— mainly
a
the decline coming
of
transportation equipment.
Seasonally-adjusted new
orders
for
manufacturers
rose
to
$27,800,000,000 in April from $27,600,000,000 in March, the report
stated.
An increase in incoming business for nondurable-goods
producers
more
than
offset
a
reduction in orders received
by
durable goods manufacturers.
In
the
automotive
industry
last
week,
the
Memorial
Day
the majority of the nation's auto workers a
four-day "week-end" and also sent car production to its lowest
level in nearly eight months.
"Ward's Automotive Reports" estimated output the past week
holiday
at
provided
smallest weekly total since the Oct. 8-1° oer'od,
automobiles were built. The week before production
127,428 cars, while the Memorial Day week in 1956 saw 77,433
81,625 cars,
when 70,175
was
units
assembled.
•
production last week approximated 17,626 units com¬
pared to 23,407 in the preceding week and 17,466 units for the
Truck
corresponding week last year.
"Ward's" said all car assembly operations except the follow¬
ing ceased activity for the Thursdav to
lanta,
Ga.,
plants
Pontiac that were
of
Ford,
Chevrolet
turning out cars
*
.
of
require¬
increased.
and inventories
orders
and
States Department of
the United
phe¬
to
structure.
of
no
throughout the whole
There is simple statis¬
tical proof.
All of 22 different
hourly wage series compiled by
our
I
corporation
is
generally
to
Inquiries from investors
and
Manufacturers'
just a few
segments of the economic fabric.
Whatever is causing it is effective
Canada.
government,
It
confined
nomenon
mail.
Private wire service
;
speeds not
Note secondly that wage infla¬
tion is surprisingly universal and
stem from the end
mills are
running into more and more customers who are buying on the
basis of quick delivery. This is forcing producers to build inven¬
tories of some products in order to compete. It is an indication
that many users have cut their inventories to the bone and are
relying on the mills to pull them through.
For many mills, export business is becoming more attractive.
Automotive plants in Europe are interested in cold-rolled sheet
and are placing some orders with Midwestern mills. J But the
orders thus far have been modest, this trade weekly concludes.
generally recognized.
Correspondence Depart¬
ment to deal in securities by
Quebec
in¬
They
Employment cost infla¬
tion is compounding at
50 KING STREET WEST,
the
10%.
was
Department with
up-to-date information on
major Canadian companies.
&
annum
per
year
Part of this forward
-
and part will
ments, "The Iron Age" continues.,
J-Until demand for some steel products improves, the
hour.
than quadrupled in two
more
decades.
A Research
are
hour
employment costs per
compounded.
seasonal
be
appliances.
and
machinery
inventory cutting and reliance on the mills for current
ward for two decades at an aver¬
United States investors
across
an
farm
movement will
employee hour, including fringe
costs, have marched steadily up¬
complete facilities for the pur¬
chase of high grade Canadian in¬
offices
an
mill optim*
September and the fourth quarter. They are expecting
also from home building, road construction, ware¬
houses,
Today their average cost
more
U. S. Steel's
INVESTMENTS
Jfl
less than
V;
r
business
new
for ex¬
►*.
The automotive industry is not the entire basis for
-,
ism for
of
ample, the fringe benefits not tab¬
ulated by the Bureau of Labor
were
of
though July steel output will drop below 80%
as
This would be the first time this has happened since
1954, barring last year's July-August strike shut¬
down, declares this trade magazine.
^
j * The expected pickup in .September is based largely on the
probable comeback in automotive ordering. By that time the mills
figure Detroit will start ordering for new model production.
Mealrwhile, automotive steel inventories are.being held to a
capacity.
December of
Statistics' wage
date are
maintenance and repair work.
own
It looks
-
-.
,.
cial bank system.
output in July may dip to
vacations.- The mills themselves plan to use the period for
by
their
new
a
Steel
three years with the
We might think of it
"cost-push" type .as, years ago.
Something new has
distinguished from the conven¬ been added.
they
resort
to
printing - press tional "demand-pull" type of in¬
Certain Unique Aspects
Let me examine briefly T
money or its modern equivalent flation.
There are several features of
of issuing debt to be, in effect, with you some of the evidence
and some of the possible expl&fK this, unique wage inflation Worth
monetized through the commer¬
ations.
.'
attention. Note first its frighten¬
as
period last year.
r
vastly dlifferent. Each year since
1947 the wage inflation has con¬
tinued so that hourly earnings are
now
two-thirds greater than 10
manpower.
W.
F.
World War
But from
experience has been
the
the
to
I period.
War
on
ago
of highways,
hourly earnings in manu¬
facturing increased 87%—a little
less than was experienced in the
World
year
in California,
to-year increases, with considerable advances in the construction
year,
prices
a
struction, especially for factory and public buildings. In contrast,
contracts for heavy engineering projects showed noticeable year-
lar
the
to
year
by about 5%v
The most noticeable declines
Ohio, Missouri and Virginia.
t
Turning to construction contracts we find that total dollar
volume in April was 9% below a year ago. Much of the decline
was attributed to a slackening of awards for non-residential con¬
From the last pre¬
experience.
of
occurred
that
I
War
for two years
.that
Compare this with
II
up,
textbook type of
has regularly at¬
prosecution of great
wars.
In wartime, governments
do not collect enough taxes.
So
inflation
1 those
of the 1920 level.
as
kind of inflation appears
new
to be cost inflation pushing
old-fashioned,
tended
understood
be
originating in monetary
and fiscal policy deemed neces¬
sary in wartime. It is in the years
since the war that evidence has
accumulated of the new kind of
inflation we have on our hands.
inflation
inflation
m a
R.
could
This
type
new
essing and tobacco industries resulted in a 6% decline in initial
claims in the week ended on May 18.
However, they exceeded
^
after the close of the war so
well above the 1,275,700 total a year earlier.
unemployment in the apparel, construction, food proc¬
Lower
Both
:
jobless workers on compensation rolls in the
May 18 was reported as 1,364,200, down 9,000 from
the week before, but
impetus to wage
World
In
Inflation.
.
.
number of
ended
week
inflation.
one-half pressive although few people
in the
large
in the like week of
The
evidence
The evi¬
of wage-cost inflation is
more
disturbing and im¬
dence
at
States Department of Labor reported. Initial
1956 reached the sum of 203,800.
before, the United
claims
Evidence from Costs
of this unique
country
212,500 in the week ended May 25, a drop of 6,100 from the week
•
•
for the
production
day "weekend."
.
^
v'.V vV\'
With respect to the nation's working force, latest figures for
new
claims for unemployment compensation payments totaled
Prices
increasing far faster than
by 1920 hourly wages in manufac¬
production on
turing were about double then*
The natural 1916 level. But the
has been long which to spend it.
wage inflation
delayed. This result was an upward inflationary then ended; stability reappeared.
delay is quite pull on wages and prices despite A decade later, in 1929, the aver¬
the wartime controls.
u nde rstandage wage was within 1% or 2%
of
a
carloadings, while automotive and crude oil: production
turned downward, with the former, expected to reach the lowest
level hi nearly eight luoftths^ due to the Memorial Day .holiday,
Which provided the majority of the nation's auto workers a fpur-
years
But that has ended.
industrial
freight
the marketable
did
its power
Auto Production
Business Failures
increase
money
persi stence,
and
Industry
ended on Wednesday of last week reflected a modest
in steel, electric power and bituminous coal output and
period
months
past have resumed their upward
fore
its
Total
and living costs for some
prosecuting the war. We there¬
had the old phenomenon of
to
perva¬
downward
of
prices
over-all
lized.
from sale in
diverted
several
next
food
produced were
the market
tions of the goods
understanding
siveness,
level increased by
In the meantime vast por¬
times.
and
here
was
almost
plied
it
that
tion
Instead
adjustment there has been further
marked
inflation,
for
between
1945 and 1951 the wholesale price
1945, the money supplythat is, demand deposits plus cur¬
rency—was in this fashion multi¬
came
'
and
Trade
Price Index
The record since the close of
ber,
America.
Food
example,
For
year.
Carloadings
.
Commodity Price Index
World War II has been startlingly
different.
ending Decem¬
In the five years
inflation
It did
kind of
to us in
come
war
of
1929, wholesale prices were
27% below the 1918 average.
and urges, in¬
stead, a broader and deeper study of the problem in the hope
that individuals will form their own convictions. A member of
the Class of 1927# the Princeton economics major states it is
futile for economists to use the usual investigatory tools to
study inflation since they ignore union's growth and power,
and public's preference for wage inflation as against prolonged
strike and production shut-down. Points out, unlike profits,
that wages gain 7 to 8% annually as against 2 to 3% average
annual productivity increase, accompanied, curiously enough, by
wholesale price rise equivalent to 5.2% per annum compounded
has
last
level
inflated
t
Retail
State of Trade
re¬
Production
Electric Output
r'
in
and monetary weapons
discounts- direct control
prices
wholesale
Steel
The
tory. Continuous peacetime infla¬
tion is not.
Following previous
TYSON*
By ROBERT C.
price
records.. Wartime inflation
characteristic of American his¬
index
,v. -y-'i
on
Monday period: the At¬
and Buick-Oldsmobile-
Friday; 11 of 15 Ford DiviContinued
on
page
35
Volume 185
Number 5644... The Commercial and Financial
Chronicle
(2617)
j
•
•i
•
decrease in
i. \
ing
approaching time of the
public offering of the first invest¬
ment company
portfolio
a
of
advance
exempt bonds
public
consideration
broad
aspects of this
,
device.
new
The
impli¬
cations
are
important in
," their
potenti-
alities in
present
the
diffi¬
culties of pub¬
lic
A.
authorities
in
Willreu
financing
schools
other
desirable
the possibilities of
ening
of
the
major broad¬
a
small
consumption
and
improvements; in
of
individual's
tax
a
agement
type of funds; and in
ireplications vis-a-vis the
Treasury.
of
one
cent
per
fee
agement
will
be
kind.
any
buying
a
..('Toad")
of 4%
based
It is. possible, that
r
which
will
forestall
Fixed
fixed-type
would
inite
advantages,
on-; tax /exemption
to
its
provided that the portfolio
owners
is held
no
in ta fixed trust
acquisitions, but only
disposals, .are permitted.
It
is
known
that
several
mangement-
type fupds also \^ill be launched
as
soon > as
new
legislation ure¬
quired. jf/xerefore, and now in the
Congres$iqnaL hopper, is enacted*
.
Having
the
benefit
Eisenhower's
of
President
affirmative
expres¬
sion of approval, and without con¬
crete objection, it is assumed that
the
advent
of
distribution
is
such
in
of
only
cited, will
The
in
the
new
person
chants and
zens
for
buyers
of the
were
mer¬
other uninitiated
their
own
town's
citi¬
school
bonds.
From
its inception
the pending
fund has followed the lines of the
old fixed-trust
type of closed-end
It will have
and
the
sufficiently
of
mass
ily
ticker
is
available
.to
In
any
that limits
with
stricting
any
'
■
event,
it
the
-.
a
ings Bonds
as
shares.
;
terrent
'
How
man¬
far
the
fund
which
could
be
in
solving
the
rIt is expected
sees,
tii"*s.
fund
fixed
via
that
stale
i-.')-
at
-Walter J* Laird
'<
'
or
trust
officers
they
and
acting
to
Savings and Loa'n
as
the
—y-v':\ny;-
possible
de¬
buyer's
a
be¬
fund
has
K.
factor
of
the
overhanging
inflation,,
of
arid
ness
sible
So
so
importantly
the
for
popularity
Irrespective
fee
for
is
such
the
of
of
the
(Special to The Financial Chronicle)
I
the
various
FRESNO, Calif. —Joel J.'Sumhas: been
Hall
will
municipalities'
America Building.
prove
most
important in its
:■
.' '«./(,,
v ■
.'
,
•
'
t h
.
-V
authority,
■'.
.
'4*
» '•
■ i
*■
■
«
-
constant
investment
"j-
tered by call or
,J»
-..
<■'
*
»}.
..
in
contrast
the
to
i /.
Hi
i-.
w
.
■
>
of
an¬
when
the
life
of
the
open-
be affected
by subsequent additions. The fixed
type of arrangement is thus ad¬
vantageous in the event of a sub¬
sequent fall in money rates, and
of
an
Through
in¬
our
large and experienced Trading
Department, in 23 convenient offices
deal in
a
us
|
I
iWEW BEDFORD. MjASS. \
also active in
mmmm.
Str^t (1)
£
^reet (16) I
HIUU)ELP1#PA.
Co.
NEWPORT, R.
SAN
Y.
7
MIAMI
.
or
requirements.
will be happy to
serve your
inquiries to Mr. Alfred J. Stalker
.
a
..-yA
WHITE
•
PLAINS, N. Y.
wmes-barr! pa.
WORCESTER. MASS.
%
%.
%
\
Kidder, Peabody
&
Co.
FOUNDED
£
lond6m>:«(6lano
Teletype: NY 1-4996
we
Address
TAU(«OIIt:.MASS.
i
|
foreign dollar bonds.
ready market
Manager, Dealer Relations Department.
#
BALTIMORE,Jib.
New York 5, N. Y.
transmission^; t
SPRljGFIElO. #*$$>,
ALTpNA, PA. £
Ingen & Co. Inc.
a
gas
preferred stocks,.
dependable supply of Over-The-Counter
I.
J
I R"°INC:.r
FRAKClSCO. CAbF.
ALBANIAN.
b
PROVIDENCE,!.
S
seek
individual
1
SCRAHT6N, pa.
you
securities,
f NEWARIfc:^
10 Ea^ifS St% (17)
BQSIQ* MASSf
PHILADELP
Affil i ate :
CHICAGO
arc
bank and insurance issues and
.^EW YORK, N V.
/ i7 waii imxi)
coast-to-coast,
long list of industrial, utility,
So, whenever
Trading Department
&
w
'
•
>
•
'•(
where^ the
case
.
I
Ci
■
(excepting as al¬
other liquidation).
managed
fund
original yield would
w
*r'..i ;■
fixed-in-ad-
end-
'• .v
"»
^
and
pay
paying
over
■
A;
fee.
a
*':■w-.--
h
••
ground
e-
delegation
of
7 I
■-
b-»
*«■,<a-**'
their
managed
e>?
'• •/
the,meed
Associate Members American Stock Exchange
p.
.
y \
t
CHICAGO. IE
BOSTON
of
Bank
•
Members New York Slock Exchange
Telephone: Dlgbv 4-6633
./
-
buying
management
case
Hill, Darlington
BINGHAMTON
to* the
added
Hall,
r;bit-
r
'rV m'.' l
200 Berkeley
;;
&
the
)5 Federal
•
of
4%,
with
avoids
already
a
has become associated with
40 Wall Street
Hall & Hall Adds
M
respon¬
staff
J. WILLIAM KUMM
B. J. Van
affiliated
Northwest.
"pros" and "cons," the experiment
will
terest rate rise.
C or p or at e
become
arrangement, this includes
yield which will remain prac¬
is
■
-
Matheson, 256 Third
vance
This
"
}
George W.
—
merhays
pleasure in announcing that
our
Joe
Avenue,
firmly
funds holding equities..
stocks. YVe
Manager of
Fitf/mcw* Chronicle)
HICKORY,1 N. C
with
is
►.
•
(Special to The
Vickroy
issues
'i
involve
trust
the
the
yvppT
causing their trust to
the
of
Wilming¬
Joins J. K. Matheson
--
railroad, insurance and natural
as
the
i•:-y>Y;'
buyer
is
to
...on
investment
tically
-
Chairman.
committee of
(v; .-v.
"*
•
wc
We take
formerly
was
differen¬
positions
trust, fits
funds'4 based
In
i
.Vv _!f:Y"V■ i'ii??*
A
i-'y' i
■■
possible r objection
that
:
i
-Walter Johes L^ird passedaway
.
into,
trust
r,"
added
arrangement
dealers'.. shelves.
exactly what he
of
" ;
*
fees, plus other possible
fixed
The
drawbacks of loss of
and the cost of Fed¬
June 3 at. the age of 63.. Mr. Laird
man¬
go
to
out¬
planted in the public's conscious¬
'
device
to
subsidy/^;
est
Possibilities
.
is* held
revenue
coming satisfied with fixed-inter¬
re¬
purchases
-
fellow
the
ton; Trust Company/ • 'Wilmington,
ntqhile* savf Del.,5 and prior thereto he had
■f-y.j
ings hank deposit's, pr from pav¬ been with Laird, Bissell & Meeds.
is
maximum
one series.
aspects of its extension
little
income,, weigh
tials will riot prompt vast trans¬
Also
contingency by
privilege. No doubt the demo¬
the
fers' frrim liquid and
Popularity and Distribution
of
for
the
.1
the
cratic
$20,000 man through' a
tax-exempt fund
wilL. get
the
equivalent of 4.83% i But perhaps
the \.open.-end
holder of stocks.
tax
out¬
on
Administration wants to broaden
the
equivalent yield
even
was so -vigorously
by » former
Treasury
Secretary Morgenthau, the present
individual gets the equiva¬
4.54,% an'lieu of 3% read¬
available in a sayings bank, /
these
feature
advocated,
lent of
and,
view¬
standing bonds
in¬
attractive
moderate
exemption
824,-
annual
come
liquidity afforded- by the
privilege/ Certainly
is
notpresent (here• the
technique- with
ready liquidating figure, such
one-
disadvantageous in
investment company.
there
above
of
into
bank
found
local
nation's
with
Viewpoint
Government's
Whereas the abolition of the
!
seems questionable. It tax
is true that thb
$i6,000 taxable in-- eral
breadth, of the market; rand 'am ase
suring continuing: visible board
with
charge
from,
Of 1953
market,
that the
the
It1 is
individual,
-to. the
deal
per cent
one
quantities.
individuals
feature -is
to
as
point, the President's endorsement
of the principle of facilitating tax
exemption is highly interesting.
some
barring of additions eliminates
the possibility of "dumping" bonds
the
idea and started working on the
project in late 1953 when, despite
the prevalent unfavorable
bond
to
expenses.
of
The .proponents
of
the
new
Haupt fund were struck with the
as
dis¬
charge
will bp, the same,
for both types of fund.
';■/ other
Conceived in Bear Bond Market
of¬
technique.
cent,
to
From
comes. from
$15,000 to ;$lu0,000,
comprise this market group.
Whether -: the
tax* ' exemption
expected
on size and
immediacy
wil 1 be placed on the
redemption
privilege
by
the
management
ftfnds, while the fixed trust will
as
"load"
their
of
000
in¬
def¬
some
with the
compare
quarter of
matter
a
one
sizable
contended
the
selection
institutions
From the Treasury's
with
t
in
sues
diversification,
portfolio
lie
but principally with the
high-income low capital investor,
who has
not had the means or
ability to absorb tax exempt is-
redemption
Type
comparison
funds'
agement
broadened
time.
limits
*
smaller
to
seem
extent,
There is the fixed trusts' lesser
in which
further
to
Some question exists
.
worries
well
as
the management funds'
trustees'
pass
the
actual
arrangement
to embrace
seem
advantages,
aging,
legislation is required
investment, company tot
function
benefit
example) only, time
operation will tell. The
would
.
man¬
independ¬
Versus Management
The
additional
an
the
sification; again the main benefit.
that may arise over the possibility
of issue "dumping."
Exchange firm of Ira Haupt
follows a recent, ruling by
the
Treasury Department
confirming the past position that no
for
market
>
,
well
as
the future of the fund movement.
for
and actual
a
dur¬
It may be held that the inclu¬
sion of issues below the
top qual¬
the
the
any
per
Co.
cer¬
ent statistical agdncy will be jutil.ized
to
pass
on
the
portfolio,
Their
Stock
.'to
of
being beneficial only to the
uninitiated investor. [I
y';\br:y^j
There
on
an
continuing cost.
&
with
•
one-fifth
York
Levitt,
volved
coriimission
/
fering price.
Municipal
New
management
(equal to 20 basis
of
sponsorship
the
event
subsequent interval.
fund's
propor¬
points)There 'will be rid;
Investment Trust Fund under the
of
the
available yields
financing possibilities
by New York State's Comptroller
ity necessitates management su¬
be no continuing sale of new cer¬ pervision, for replacement as well
tificates via the' 6pen-eh<t tech¬ as liquidation, and hence would
nique. jhe sole continuing : cost J.tend to limit the fixed trusts .to
will be a trustee's fee of one-fifth the highest grades, with diver¬
revenue
The formation, of the
a
in
financing proplems (as hoped for
-
tionate market value.. There will
exempts; in
further major extension of fund
distribution; in the comparative
functioning of the fixed and man¬
in
the fund's
holder at any time at its
over-
coming
,,
selected
sale of
acquisitions barred. The trust
tificates will be cashable by
a
head
of the
issues
of
of the
cor¬
out
delegation of investing authority
for trustees.
The absence of the
participating certificates, after
which any changes would be con¬
fined
to I disposals
with
fresh
tax
'
brings to
portfolio
a
of the mutual fund
'i.
; work
_can
Again, the one-way management
function, for disposals, reduces the
previously-cited advantage of no
THE NEW FUND EXPERIMENT
The
with
Drawbacks-"
.
respondingly
disadvantage
By A. WILFRED MAY
type
-:
•This constant yield feature
•
5
Members
1865
of New York Slock Exchange, American Stock Exchange,
Boston Stock Exchange anil Midwest Stock Exchange
S /• t
.,/•'
'
•
The Commercial and Financial Chronicle.
6
.Thursday, June 6, 1957
.
,(2618)
affecting both oufrifational vulnerable and unstable, and
stability of the economic order of fdeepJy
Business, Congress, EducationWhere Are We Going?
are
which, in turn, has
helped us understand them and
adapt them to our needs. We know
enough to be confident that we do
phenomena
By HARLAN HATCHER*
President, The University of
Michigan, Ann Arbor, Mich.
surrender back to them some of the sources of
taxation to be used directly for the support of education."
In addition, business and industry is asked to pursue a less
contradictory course by providing more concrete and effective
recognition to higher education's vital role so long as they
plan research centers and modern industrial plants to make
goods for future populations.
states, "is to
This
is
period of continuing,
a
high level prosperity. Human and
property
losses
during
World
War II were vast and almost incalculable.
Peoples were
displaced.
Cur
encies
r
upset.
were
anal¬
the
On
ogy of
War
World
I,
we
should
have
endured
eco¬
nomic disaster
and
ing
paralyz¬
inflation.
We
did
No
con¬
trast could
be
than
cited
that of Germany in the 1920's-'30's
and West Germany since World
War
II.
Her
remarkable.
fared
not
has
been
ourselves
have
recovery
We
too
adversely
to
up
—
now.
chemical,
day
aeronautical
In
1910
these
stalled
for
car
The
en¬
makeshift laboratory
his
Deeds' barn in Dayton,
in the old
sorted out his
olutionized
hardware, and
the
emancipated
rev¬
and
by inventing
automobile,
women,
the electric self-starter.
multi-million
the
General Motors Technical
dollar
Center.
The road from Deeds' Barn to the
Technical
Center
and visible
is
outward
an
symbol of the dramatic
march of
science, and its resulting
technology as applied to one in¬
The inventive genius of
solitary mind is still vital, but
its ideas into useful
products and involve them in our
dustry.
the
to
develop
Though the lengthened shadow
industry and culture require ed¬
the Great Depression of the
ucation, hundreds of related skills,
1930's still falls ominously across
and a thousand supporting proc¬
cur
path and influences our
esses,
as
well
as
considerable
thought and planning, it gives no
capital and business management.
authoritative sign of striking us
We are committed to this activity.
of
another immediate blow.
The
this
for
reasons
ing state of affairs
more
and
we
are,
about what
were
are
doubt
no
and complicated. We know
about the world we live in,
•many
in
learned
World
the whole, wiser
on
do know
we
1920's.
the
how
And
learn.
to
given us
products,
than
we
have
we
The
stimulated
Wars
Research has
two
research.
knowl¬
new
edge,
new
esses.
It has speeded up the cycle
from idea,
new
,
proc¬
to product, to obsoles¬
cence.
A
day's
businesses
heavy percentage of to¬
based
are
on
products that were unknown only
a
few years ago.
*
An
the
tion
D.
address
11th
Annual
The
our
world is concrete and easy to
iso¬
economics
is
less
and
assured,
strable
and
harder
to
it
a
social
processes
procedures
but it is
is
are
demon¬
increasing. It is
dramatize
economists
in
the
and understanding in
research
what
the
doing. They work
complicated and illusive field.
They have
since
the illiterate
days of the early
1920's. As Kenneth Boulding,
Michigan economist, quoting
come a
long
way
Schumpter,
says,
nomics
before anybody knew
was
"How nice
eco¬
anything."
Our
Witness
aspect
late. Our mastery of
of
our pres-
skill
part,
by Mr. Hatcher before
Congressional Associa¬
Executives of
mechanical
more
in
exact
history
it
may
insignificance.
of
knowledge and
this field
are, at least i»
responsible for, the relative
only two samples
of our crea¬
of the forward thrust
tive
They are typical and
power.
illustrative, and must suffice for
our
here.
purpose
People
Major Resource fi
as a
America is exhibit A of modern
it
based solidly upon business,
are
industry and scientific agriculture.
These in turn are based upon, or
accurately, rooted deeply in,
more
nurturing soil of education for
our
people, and a growing
the
mastery over science, technology,
and
skills. No other
has invested so heavily, as
professional
nation
a
matter of fundamental faith and
education.
national policy, in
Michigan, Washington,
IT.
A.
Boyd:
Professional
1957.
Amateur.
ed¬
growth
Our forefathers bought into
differential which accounts
The
present greatness in a dis¬
our
traught and poverty ridden world
is the direct fruit of this policy.
had
have
We
raw
more
no
re¬
than other peoples. We
sources
in¬
vested in education in its broadest
most
and
reaches.
specialized
Other nations have not.
-
and
agriculture. They speak for them¬
selves. They have given us con¬
fidence and optimism along with
in
Federal Government
The
serious
most
from state to national
doomed
rights
ourselves
waging
and
man's emotions:
a
"more dangerous
i
that* we
appears
ernment discovered how
the
force
of
values
primitive force
and more devas¬
also
are
financial crisis that is
part of this total psychological
state.
various successive pres¬
Under
have
we
and
TnWn^l
of
Ipcto**
and
taboos;
to
na¬
East, nourished in part by
to the
on
freedom
we
explosive fact of the rise in
the world birth rate; to
the skills
diplomacy that must take into
these over-riding
human
and these
regions
commitments
The
became a subsidence,
an avalanche.
it
now
have had
is
psychology
in
our
college
Like
curable.
a
minimum of attention
American
culture
curricula.
Yet
and
our
they
are
Continuing Interest in
Capitol Products CorpY
of
budget
peacetime
$72
almost
$11 billion in highway and
security programs, to startle
an installment buying nation into
a realization
of the magnitude of
other
social
its Federal
which
commitments, and the
bureaucratic structure
have thrown together to
we
STROUD & COMPANY
.
tollowed the same un-
have
' We
coordinatedpolicy
The
level.
on
state
the
PHILADELPHIA 9
non¬
somewhere
lost
and
tors
among
the
representatives
sena¬
48
of
states, among thousands of offices
and bureaus, among other thou¬
sands
of
items,
big
and little,
subsidies
among
and
to farmers
shippers, peasants and potentates,
global aid and local pork barrels.
"They"
recommend, "they" tax
and
appropriate, "they" spend.Y?
"they"
collect
by
quar¬
terly installments, in advance, un¬
der heavy penalties,
or through
last
was
year
The gas¬
Collecting agency.
a
oline
and
tax
sales
the
committed
to
tax
are
and
state
units, and are out of reach of
local
the
•even
deludes himself into believ¬
ing that the Federal Government
has great independent resources,
which it can send to his rescue or
Only one-third, relief, and he exults if he gets a
of the total tax few of his dollars back as "Fed¬
Michigan are at the eral Aid" from Washington.
legislature.
approximately,
collections in
disposal of the state legislature.
A significant portion of that sum
is for higher education.
When a
sudden wave of economy hits us,
we do not reconsider the total pic¬
ture;
we
strike wherever there is
And here
is precisely the
Continued
on
point
page
28
TRADING MARKETS
vulnerability.
education
is
is
It
odd,
FLORIDA
ready
a
victim.
and ironic, that the
productive part of
SECURITIES
most vital and
our
spending should be the most
Bank, Insurance Companies,
Standard Pressed Steel Com. ■}
John B. Stetson Pfd.
Invest in
Pocono Hotels Units
Y
Buck Hill Falls Co.
Golden
'
.
Established
1914
Triangle
■*
'
Bank & Trust Co.
TRADING DEPARTMENTTELETYPE MM51
Reading Co. 3VsS, 1995
115
Broadway
N. Y.
Philadelphia 2, Pa.
New York 6,
CO 7-1200
LO 8-0900
ATT
Samuel K. Phillips & Co.
Members' Phila."Balt.
1529 Walnut Street
LANCASTER
Florida's
ALFRED D. LAURENCE
BOENNING & CO.
•
needs,
state
of
affairs
INCORPORATED
CITY
wasp
Government
Federal
And
handle them.
Y Guarantee
Keyes Fibre Co.
ALLENTOWN
digger
to meet its minimum local
the the
on
billion, submitted by an economyminded administration, plus an¬
International Textbook Co.
•
the
stinging
the
tarantula
spider, it leaves the victim alive
but paralyzed in its nest as food
for its young. While the State of
for veterans
Fischer & Porter Inc.
of 12 largest Philadelphia Banks
ATLANTIC
is
Industrials
A
•
of the shift
Pepsis
BANK STOCKS
PITTSBURGH
This
first introduced as a
was
Federal level. We have committed
Higher
factors.
These factors
SCRANTON
Col-
Revenue.
somewhat Michigan agonizes to find money
been
recklessly making all kinds of un¬
already
thought to
different religions,
of the ideas
account
•
to usurp
the tax function through the
trickle,
a
Michigan
tating than nuclear fission."
of
NEW YORK
been
Gov¬
in payroll deductions.
The source,
required ap¬ after periodic outcries, grows pas¬
We have not done so well in proximately $1 billion. Well over sive, accepts the new concept of
"take-home pay," and surrenders
those subtler areas of necessary 50% of this sum was restricted or
The state to the vague, absentee power. He
human knowledge that deal with dedicated in advance.
/
have left lying around since 1776;
Send for comparison
have
Federal
to
the
costly kind of peace.
reaching
sures,
when
unstable, insidious, deadly, and, I fear, it
It may be both irresistible and in¬
devastating,
a
too
now
a
Expenditures
unnecessarily, found
too alone in the world,
have,
government.
responsibility and
now
seem
process
Federal
here
danger
further shift of responsibility
a
carrying them out. And great wis¬
dom is required to guide and re¬
strain the impulsive generosity of
the warm American heart.
We
home and spanks
comes
Shifting Responsibility to
is
ignorant and
,
children.
the
Local and state
technology,
science,
illusions.
some
some
PHILADELPHIA
all fed up with Federal
inexperienced to show great wis¬
dom
in our policies, or skill in
triumphant successes have
Our
been
and Far
Maintained in all
are
office, he
of the long journey.
enormous
tionalistic aspirations in the Near
Trading Markets
We
understand the dec«",*«
have been too
a
frus¬
taxes, so we lash out at any vulnerable spot on the local scene.
Father has had a rough day at the
that lie
behind America's present position
in the world. They would like to
arrive there on some magic carpet
without enduring the heavy bur¬
We
also
to
tration.
education and hard work
dens
reaction
human
normal
is
slashing
chalantly reaches in and removes
($6 billion), for wel¬ some $5 thousand million from
stock. They expected no immedi¬
fare ($14 plus billion), for foreign
the
state
through
income
tax
ate dividends for themselves. They
aid ($6-8 billion, military and eco¬ alone—five times our own state's
did expect it for their children,
nomic), for farmers ($5 billion), budget.
*
and their children's children.
for
interest
($5.5
billion), for
The resulting general protest of
Their
investment
has
paid off
armed services ($38 billion), for
handsomely. The stock has been Atomic Energy Commission ($2.3 numbed unhappiness has no place
split 10 to one, the yield has risen, billion), for highways (X billions) to focus—only the great awesome
and the inventory is in reasonable
sweep of the wilderness of a $72
—to name a few big items.
billion budget and a responsibility
balance.
It
took
the shock of
a
cash
ucation for the Nation as a
their
Active
surprised and hurt. They
are
do not
reckless
and
rebellion
outraged
of
response
valor, repair thereto.
Thev do not, and have not, and
we
of failure to exercise
priorities
and
choices
in
our
spending program, both state and
national. And the equally unwise
with
corrected
We have given little
C.
outcome
cept of freedom needed only to be
raised and all good men would,
prosperity which supports
and the
surprising. It is the cold, logi¬
cal
of the American con¬
banner
is
not
our
industrial civilization. Our culture
for
of
encourag¬
stability
our
as
our
dwarf them into
all
Forty-five years later he helped
dedicate
of
the
for
The present outcry, however,
is
They receive the gifts and
Embassies. We thought
us.
stone
/
nuclear
ultra-specialized
us
I have isolated
gine kicked back and the flying
jaw.1 He died
of ensuing complications.
Cadil¬
lac's Henry Leland asked Charles
F. Kettering to do something. Ket
to
,
Concept
new
perspective
crank broke Carter's
went
a
results of
concept of
industrial structure. In the longer
Isle
woman.
a
love
orderly development is just as
important to
weapons and
electronic and
Belle
under
forces
This
and
industries.
on
and
first
unprecedented deluge of Ameri¬
can
dollars, other peoples do not
do
harmony with natural law.
bridge,
Byron T, Carter tried to crank a
not.
more
dramatic
Harlan Hatcher
ent
capricious
as in
disasters
direction
the
some
despite our high motives and the
have some
maneuverability to order and con¬
trol
reaching
now
our own.
psychological, and,
therefore, somewhat frustrating.
We are stunned to discover that,
more than we have
epidemics of smallpox
typhoid.' We
or
are
The
£
any
suffer
to
give to the states and the schools," President Hatcher
can now
the
blows, of economic
the past,
by business, Congress and education to avert Federal financial,
.educational support. "The best aid the Federal Government
Y
suffer
to
have
not
Michigan University head urges positive and immediate action
We
crises of
reading of the forces and the
rate
so
effective opera¬
tion and long-range planning.
handicapped
and our private lives,
dozen years. That is, they
responsible for a more accu¬
the past
Teletype PH 30
Pennsylvania Bldg., Philadelphia
Teletype
PH
375
;
'
'
& COMPANY
INVESTMENT SECURITIES
Stock Exchange
N. Y. Phone
COrtlandt 7-6814
201 S. E. 1st Ave. Miami, Fla.
Phone: Miami, FRanklin 3-7716
Volume 185
Number 5644
The
...
Commercial and Financial Chronicle
(2619)
7
if1
sales
Importance of Financial Planning
To
By
Growing Corporation
a
•
&
individual basis is
an
spring
v
1951,
it
was
additional
made
needs.
by
to
' This
the
meet
time
the
standpoint
conditions
ex¬
financial
fu¬
thus
and
company to
terramycin
cash
reserve
Pfizer's
from
sums
by
necessary
marketing
as
ture
•
of
that
anticipate
needs
at
attractive prices.
market
some
of its
when
be
done
•
foreign
trade expansion which has since
paid off many, times over, and for
the acquisition of J. B.
Roerig &
the
time
a
the/financing could
Pfizer
of
enabled
Co.
at
which
into
The proceeds of
the
Pfizer
gave
packaged
raised
A
•/
second
the
entry
an
vitamin
ness.
$30,000,000 by means of the this financing enabled Pfizer to
banker in providing several
examples to illustrate the amount, £/>
/public/offering of< $15,000,000 of* continue to promote and expand
propitiousness, and type of financing required in each case./%<
:^qmfebn(^Stocfe through subscrip¬ its sale of terramycin without the
Drawing upon recent financing experiences iir Pfizer, Warner-/ •
1.
:
busi¬
-7
illustration
within
Continued
on
page
Mr. Porter discusses such matters
as:
covering forward com¬
advance^ backing up research expenditures
with adequate working;
capital, relationship of equity to debt
capital, and continuity of management.
mitments well in
It
is appropriate
to
discussion of financial
by quoting from an
advertisement which
start
that
my
planning
firm
my
ran
Fall
dollar
of
on
rule
a
of
thumb
that
of
uct
each
of increased sales for
2 5 th
which
cannot
a
be
between
to
plant. Many pharmaceutical
finance is
and
a
r
earnings
market
conditions
favorable, and
well
in
crease
are
25%
before
sales
equal
to
This
in
is-
short,
when
you
f
can."
-
.
re-
on
of
problems
complicated than-those
individual and the embarf
financing
more
an
one's
.well
as
;
can
,
be expensive
embarrassing.
indicate; the .'high
addition
to
how
much
HALSEY, STUART &
more
DICK
>
and
—
financial
planning
of
"7 •
WM. E. POLLOCK
in-
v
the type
CO. INC.
BLAIR &. CO.
•
CO., INC.
GREGORY & SONS
INCORPORATED
THOMAS A COMPANY- CLAYTON SECURITIES
CORPORATION ^
''
t
of financing—that is, should it be
as
.
r
^ MULLANEY,
or; 7
few i (4) .common stock. The; provisions
/bitterthan. to ,:of each class of security also re-
-
•
McMASTER HUTCHINSON & CO.
F. S. YANTIS & CO.
:
ALLISON-WILLIAMS COMPANY
'-iir k
are
WELLS & COMPANY
INCORPORATED
/ ;
/*
PATTERSON, COPELAND
;
t:y.
•'
•-
■•■■..J.-'...,;:..
>'■
June 5, .1957.
v,
,
have; ope's work. completed by quire careful study and depend
.others, or completed Vitfothe help 'largely on the prevailing condi-
t
MERLE-SMITH
.
when
eludes determination
Indeed,
.brink of Suceess; fhere
experiences
Prospectus may be obtained in any state in which this announcement is circulated
from only
of the undersigned and other dealers as may
lawjully offer these securities in such state.
such
short-term bank borrowing,
there are few corporate
predica- -(2) long-term debt, (3) preferred
ments.so painful and expensive.as stock - or * debentures / possibly
running out. of moneyr. on f the convertible into common stock,"
^
'4
The
these
of
1, 1957
investment.
In
by failure to provide adequately
in advance for a
corporation's fi•nancial needs
All
rate of return necessary to recoup
rassments and frustrations caused
*
but
Company
Price 100% and accrued interest
factors not only require adequate
Corporate /financial
are
Dated June
requires ad-.,
capital for ini-
receivable.
accounts
.
•
,/
.
tial
promotional
expenses, • 'for
additional inventory and increased
the
offer to buy these securities•
Mortgage Bonds, Series due June 1, 1987
turn
forces
sue—in
an
to
ditional working
Robert C. Porter
solicitation of
•
in-
an
15%.
necessity
V?
First
com-'
5-to-l
the amount spent
of
search.
or a
require'
$2 for additional
velopment.
Applying the
ratio, this should result in
good,
while
will
sell
(a Wisconsin corporation)
panies set aside 3% to 5% of their
sales dollar for research and de-
prospects
e
facilities
to
Northern States Power
produced.in'
existing
and
offer
an
~The*offering is made only by the Prospectus.
~
prod-*
"The best time
$1
announcement is not
■
$10,000,000
dollar
new
Anniversary,
when
://•'"
development
the occasion
its
This
'
>
expenditure should create, on the
average, $5 per annum of additional sales volume. There is also
institutional
last
each
■
-
&,
KENDALL, INC.
j
....
/„
>
FIRST OF IOWA CORPORATION
C. S. ASHMUN COMPANY
'
SHAUGHNESSY & COMPANY, INC.
^
•
.
of
>
others
v
■
bad to take
you
bargain-basement
v^a
Tcold
comfort
to
in
.tions
on
basis., It'" is
advertising
7
Determining
Firm's
a
V
to
meet
the
Financing
needs
it
is
margins)
spent
in
in
where Mr.
of the
(including
the
—
as
on
or
TlI
In
needs
through
volume
ning to
retained
which
companies with large
diversity of products
or
and
assure
continuity of income.
*
*
'
companies
»
.
.
•
Many
too
rapidly
to
finance
which
their
/
expand
products
new
prod
Others
u c
t i
but
o n
also
a
,
have
may
low
profit
securities
in
but
whether
a
;
,
determining
will need fi-
Some
figures
as-
|
sembled several years ago by
John Bohmfalk in a book entitled
| /'Chemical Investments" indicated
I
*A
..
,
..
_
,
4
of California
s
is
1
York City, May 9, 1957.
'
Mortgage Bonds, Series K, Due June 1, 1987
-
(5%)
.
/
The
ing when earnings and prospects
-were good, while market condi-
'ne^essit/forel/the
y iorcea tne
Until
1942. Pfizer
®
issue
issue.
had
been
'
■price 100% and accrued interest
Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.
„
;
a
.
■
With
established public
market, Pfizer found it easier to
anticipate and
provide
for
its
HALSEY, STUART &, CO. lNC.
*
As its
antibiotic business expanded rap-
idly after World War II, investment bankers were able in 1948 to
place privately for it with a group
of insurance companies $5,000,000
of
3^%
BEAR, STEARNS & CO.
-
SALOMON
DICK
&
BROS. &
Preferred
Stock.
These
required
by
increased
L. F. ROTHSCHILD
HUTZLER
MERLE-SMITH
WEEDEN
&
CO.
WERTHEIM
&
CO.
IRA
INCORPORATED
HAUPT
&
CO.
& CO.
BACHE &.
(
CO.
>
,
GREGORY & SONS
an
needs for additional funds.
expansion
First
that of
j. 1 Pharmaceutical adver'tisfnV^ciJbTVew funds helped to provide the plant
;
Telephone Company
.
?£lzerfcwh,eh has done its financ-
ers.
nancing is to look at its research
expenditures.
General
wish
advance.
company
offer to buy these securities.
.
to-
.
of
way
an
they illustrate.
well-estab--
a
line
solicitation, of
or a
$20,000,000
growing corporation by
few examples of finan-
The first illustration
facilities.
•
One
4
.
Privat<;ly owned company.
At
..that time the^management deto
grow
by expanding research termined that it would be adviswhich will require financing the a^le for the long range future of
fruits thereof.
Oihers may wish' the company to establish a pubto grow by merger or acquisition
tic market for its stock which
which can be facilitated by estabwould also permit its employees
lishing a broad public market for at all levels to become stockholdlished
their
t
.
offer to sell
offering is made only by the Prospectus.
this
on
Magazine,"
was quo.ed
question depends
mu
their
not.only to advertise and promote
an
The
citing a
cial
planning
that
clicked.
I
have picked these examples, not
because of the names or amounts
involved,
but
because
of
the
v a r i o u s
financing techniques
growing
.-growth from retained earnings.
/ Some hit the research
jackpot
and need large amounts of
money,
l"
*
.
are
is not
announcement
Importance
earnings. This is particularly true
of
companies
with
high profit
margins
This
I can probably best illustrate
the importance of financial plan-
spite of prevailing high taxes,
companies can finance most
their
•
t .• -v
"Fortune
Eberstadt
.
on
few
a
-of
t
A
■4
have
You may
article
Illustrates Planning
being
research—and its expansion and diversification
objectives.
[
money
saying "the
whether you want to eat well
sleep well."
profit
amounts
recent
subject
particular company—the stage of
its growth—the type of business
that
the
Seen
Every financial plan has to be
tailored
should have.
pany
.
"
5.
the
men :
./bo'-v////'%/
'V
■
1
tastes/of
term debt, should not exceed 50% >
Uo know that/their
-company has /of/the total
capitalization of a
a
good new product to promote company, including earned sur- '
unless it also has adequate finane- plus although experts differ as to
ing or credit to cover the adver- the amount of debt which a CDm-
tising bill.
-
and
market. Generally speaking, long-
COURTS
&
AUCHINCLOSS, PARKER &. REDPATH
CO.
THE
ILLINOIS
COMPANY
INCORPORATED
BALL, BURGE & KRAUS
JOHNSTON, LEMON &. CO.
;
SCHWABACHER &,
FIRST OF
CO.
MICHIGAN
-
ALSTYNE, NOEL &, CO.
'
CORPORATION
GREEN, ELLIS & ANDERSON
June 6. 1957.
VAN
-
J. BARTH
FREEMAN
THE
ROBINSON-HUMPHREY
&,
,
CO.
COMPANY
&.
COMPANY, INC.
'
.
.
pharmaceutical field is War-
Lambert, United Artists, Smith-Douglass, and Braniff Airways,
f-
,
planning for growing corporations
emphasized by New York investment
tion
rights to stockholders and cash worries
usually attendant on
$15,000,000
of
4%
Convertible the promotion of a
rapidly grow¬
Preferred: Stock/ These/securities
ing -product.
It/also^helped pro¬
were
sold
atV a favorable time vide funds
for
streptomycin
be needed to meet the
direct
The need to tailor financial
on
the
pansion
Co., Inc., New York City
and
■i
penicillin,
apparent
would
By ROBERT C. PORTER*
Partner, F. Eberstadt
of
.and the early stages of terramy-
.
.
.
,
,
.
jr
45
8
Commercial and Financial
The
(2620)
Bulletin
Bank of New York
it
w
.
i
Street, Los Angeles 14, Calif.
Black Si vails & Bryson,
&
"
v
Inc.—Memorandum—Saunders, Stiver
Also available:
will he pleased
the following literature:
Minerals Corp.
issue of "Monthly In¬
vestment Letter"—Hayden, Stone & Co., 25 Broad Street,
New York 5, N. Y. Also in the same issue are discussions
of I. B. M., Douglas Aircraft, Florida Steel, and the Oils.
Aircraft Industry—Discussion in current
fuels,
Euratom requirements for atomic power, United Western
Minerals Company, Vaal Reefs Exploration & Mining Co.,
Ltd., El Paso Natural Gas Co., and Daystrom, Inc.—Atomic
Development Mutual Fund, Inc., Dept. C, 1033 30th Street,
N.
27)—Comments
(No.
Letter
Atomic
high
on
bulletin
Deere
Dunham-Bush
letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
able
View
—
investment
Monthly
is current Foreign
Letter.
lliggins,
Inc.
—
rick
135
a
207
during first year of the new plan
—Harkiscndass Lukhmidass, 5 Ha mam Street, Bombay, India.
Also in the same brochure are discussions of Indian indus¬
from stock market angle
Japanese Stocks
—
Current information
Yamaichi Securities
—
Over-tlie-Counter Index—Folder showing an
available
parison between the listed industrial stocks used in the Dowthe 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
performance over a J 3-year period —?
Inc.-, 46 Front Street, New York
market
and
Philadelphia
are
Bank
Stocks—Comparison .of
12
.
Analysis
Also
Y.
W. £.; Hutton & Co.;
M.
Darling, Du Pont,
Homsey & Co.; Charles D. Driscoll,
Connelly,
Seismo¬
Rodney
Peerless-New
—
Paine, Webber, Jackson & Curtis.
Y.
& Co., 26
COMING
Broadway, New York 4, N. Y.
Neptune Meter
Co.—Memorandum—Hemphill, Noyes & Co., 15
Broad Street, New York
White, «Weld &
Herbert C. Smith, Blyth &
Co., Inc.; Gerald D. Martens, F. L.
Putnam
&
Co., Inc.; Irving D.
,
.
—
EVENT S
5, N. Y,
Company, Farm Bureau building, Oklahoma City- 5„ Okla.
South
Northern States* Power Company—1956: annual rieport—-North¬
ern
1957 (Boston, Mass.)
; . :
Traders Asso-
June 6,
Boston Securities
Minneapolis 2, Minn.
States Power Company,
favored by institutional
ciation
Airlines,
Northwest
Co., 63
Inc.—Bulletin—John H. Lewis &
& Co., 120 Broadway, New York
'
i
'
;
«"
1
Saxton &
'
■*:'
Southern California—Summary
Production
of business conditions—Secu¬
rity-First National Bank, Box 2097, Terminal Annex, Los
Angeles 54, Calif. ' - - '■
"
'
• * '"
Corp.—Memorandum—Harrison & Co.,
Street, Philadelphia 9, Pa.
123 South Broad
Corning
Corporation
Fiberglas
<
—
—
Survey
Bulletin
Street, New York 5, N. Y.
Tax Exempt
Pine
-Mutual Funds
i
—
*!•
;
American
Foreign
&
Power
*
—
Park, Ryari, Inc., 70 "
Inc.—1956
Company
annual
re¬
port—Secretary, American & Foreign Power Company Inc.,
2 Rector Street, New York 6, N. Y.
* ,
Optical Company—Report—Thomson
American
11
Wall Street, New York 5, N.
American Seating—Survey
—
& McKinnon,
nual dinner dance at
bulletin on Union
Concrete
Aviation, Inc.
—
Analysis
—
& Middlebrook
Rohr Aircraft Corp.—Memorandum—Emanuel Deetjen
V
& Co.,
.
231
States Life Insurance
South
Warner
&
La
Salle
Swasey
Co.—Memorandum—Illinois Co.,
Co.—Memorandum—Goodbody &
Co.,
115
New York
5, N. Y.
on
chester Country
Chesapeake &
Woodley Petroleum Co.—Data—Joseph Faroll & Co., 29 Broad¬
position and trade
way,
Advance Ind.
Eastern Ind.
Aerovox Corp.
Elco Corp.
New York 6, N. Y.
Also available are data
Merrill
on
Machlett Labs.
Airborne Instr.
Aircraft Radio
Electronic Assoc.
Mallinckrodt Chem.
P. R. Mallory
.
Epsco, Inc.
AMP, Inc.
W. L. Maxson Corp.
Foote Minerals
Ampex Corp.
Metals & Controls
(Special to The Financial Chronicle)
Mid Western Instr.
tain States Securities
High Voltage Eng.
Orradio Ind.
Denver
Hycon Mfg.
Beryllium Corp.
Brush
added to the staff of Moun-
Four Corners Uran.
Corp.
1957 (New York, N. Y.)
Society of Security
Corporation,
Club Building.
'
Analysts, Inc. annual outing at
Westchester Country Club.
(Special to The Financial Chronicle)
MILWAUKEE, Wis.
Brunhart
has
—
become
John A.
affiliated
with Brew-Jenkins Company, Inc.,
First Wisconsin
Building.
National
Bank
,
T
June 18, 1957 (Detroit, Mien.)
Michigan summer
&
Detroit
of
Association
Dealers
Securities
outing at Western Golf &
'
Beryllium
Jerrold Electronics
Radiation Inc.
Johnson Service
Sprague Elec.
Leeds & Northrup
Cramer Controls
Ling Electronics
Dynamic Corp. Amer.
Northwest Production
Vitro Corp.
Liquidometer Corp.
DEPENDABLE MARKETS
Vocaline
Preferred
Three States Natural Gas
Twin
City
(Minneapolis-
.
Bond
Club
at
an
the
all
day
White
sports program
Bear Yacht Club,
White Bear Lake. Minn. June
Big Piney Oil & Gas
June
21,
1957
on
Request
Troster, Singer & Co.
New
Place
HAnover 2-2400
York Security
at
Dealers Association
New
Teletypes
York
NY
Western Securities Corp.
One
6, N. Y.
1-376-377-378
of
DEMPSEMEGELER & CO.
Exchange Place, Jersey City, N. J.
Telephone HEnderson 2-1000
Open-end
phone to N. Y.C. HA 2-0185
20.
(Philadelphia, Pa.)
Investment Traders
Special Reports
Members
annual
cocktail
party at Hotel Nicollet June 19
outing and picnic with
and
Delhi-Taylor Oil
1957
Paul)
St.
Victoreen Instr.
Ling Industries
Craig Systems
19-20,
June
Tracerlab
Collins Radio
Trinity
Coun¬
try Club.
'
Burndy Corp.
74
Phila¬
York
New
Perkin-Elmer
%
Baird Assoc.
Theodore C.
Dixon and Howard H. Groelz have
been
Astron
—
(Philadelphia, Pa.)
Phila¬
14, 1957
June 18,
DENVER, Colo.
Club and Beach
delphia annual outing at
delphia Cricket Club.
Joins Brew-Jenkins
With Mountain States
v
New
West¬
Investment Association of
Petroleum Ltd.
Lithium Corp.
of
Club, Rye, N. Y.
Ohio.
June
We
Club
Bond
York annual field day at
Stern & Co., 52 Wall Street,
Also available is data
(New York City)
June 14, 1957
Municipal
White Motors—Data—Herbert E.
Electronic/Atomic Stocks
spring
annual
Group
party at Sheraton Gibson and
the Maketewah Country Club. -
Street, Chicago 4, 111.
Broadway, New York 6, N. Y.
Banks, Brokers, Dealers—
1■, ; / Municipal
Bond
Cincinnati
Dealers
■
(Cincinnati,
1957
13-14,
Ohio) -
Broadway, New York 6, N. Y.
United
Alberta, Canada.
Park Lodge,
June
Inc.—Memorandum—Aetna Securities Corp.,
.
..
(Canada),
Investment Dealers' Association
of Canada Convention at Jasper
11-14, 1957
June
Broadway, New York 5, N. Y.
Scott & Williams,
outing at the Orchard
Country Club.
Lake
>
Coburn
'
(I)etroit. Mich.)
:
Club .of Detroit annual
summer
Ellis & An¬
Pipe—Memorandum—Groen,
.the Belr
*. v
)95?
n
June
Incorporated, 165 Broadway, New York 6, N. Y.
III
.Plaza.^
^mbnf
-
Bond
Robinson
120
Brands and Sterling Drug.-
a
derson, 61 Broadway, New York 6, N. Y.
Y.¬
Abraham & Co., 120 Broadway,
^
Oil of Call-
fornia.
Also available are surveys of Standard
York 5, N. Y.
New
/. 5, N. Y. Also available is
Raymond
■
Security Traders Association of
New York Glee Club third an-
reet,
Street New, York
m
;
1957 (New York, N. Y.)
June 7,
-
Co.,.36 Wall
the KnollForest, 111.
at
Day
wood Club, Lake
Harris,
—
v .'V*
Pittston Co.—Bulletin—Bache &
Field
nual
Analysis
Corporation—Report—Arthur Gardener Associates,
Sutro Bros. & Co., 120 Broadway,
:T',V: 'k'
] T New York 5,
-
—
(Chicago, 111.)
Club of Chicago 44th an-
Bond
'
Upham & Co., 120 Broadway, New York 5, N. Y.
Perniachem
II Commerce Street, Newark, N. J.
Market
Stock
•:
"
Owens
I
1957
June 7,
—
outing at Blue
Club.
Wall Street, New York 5, N. Y.
Northwest
Corparative figures— G, A...
Co., Inc., 52 Wall Street, New York 5, N. Y.
Pub)ic Utility Common Stocks
t,
:
summer
Hill Country
.
5, N. Y.
;
Cather &
*
investors—Harris, Upham
Field
investment
In
Turnpike—Program report—DeLeuw,
largest Phila¬
delphia banks—Stroud & Company Incorporated, 123
Broad Street, Philadelphia 9, Pa.
Pocket Guide—Drscusses 20 stocks most
Bradley,
Corp.; Robert
Co.;
Cylinder Gas Co.—Analysis—Sprayregen
National
Francis J. Mullin,
Engineering—Circular—Straus, Blosser &
Service.
Opper
Blair, Harris Upham & Co.;
ert B.
Bates Offshore Drilling Co.
&
J.
Polleys, Josephthal & Co.; Rob¬
L.
Bank—Memorandum—Milwaukee Company,
Exchange, Place, New York 5, N.
circulars oh British Industries and
40
Nortlieastern
;;
■
O'Connor & Co.,
Also available is
York> Incorporated, 37 Wall Street, New York 5, N.
National Quotation Bureau,
4, N. Y.
&
Co., In c.',
Raymond M.
Edward
Murray, Tuck¬
er Anthony
&
RfL. Day; William C.
Nashville 3, Tenn.
New York Hanseatic
Mercury & Chemicals Corporation
up-to-date com¬
Jones Averages and
yield
Machine
McDowell,
graph
Co., Ltd., Ill Broadway, New York 7, N. Y.
J.
,
Michigan Street, Milwaukee 2, Wis. Also available
memoranda on Maryland Shipbuilding & Drydock Co.
Reading &
Op-
Chairman,
B. Maguire
per,
East
and
Co., Ltd, 61'
Economy—Survey—Nomura Securities
Broadway, New York 6, N. Y. • . .
p -
Japanese
209
Vwiulo Co,
on
of
outing
Edward J.
Ilerrington—Memorandum—Doyle,
South La Salle Street, Chicago 3, 111.
McNeil
by the industries.
trial securities considered
are
the
committee are:
Inc., Life & Casualty Tower,
Marshall & Ilsley
Market—Survey of working of India's economy
Stock
golf,
features.
Y.
Street, Chicago 4, 111.
memorandum
to
softball will be
Incorporated—Ahalysis—Clark. Landstreet & Kirkpat-
Kusan
'■—.■V
swimming and
80
General Investing Corp.,
Marmon
stocks in a popular price rangd
"Gleanings"—Francis I. du Pont & Co.,
Wall Street, New York 5, N. Y.
Indian
—
Memorandum-—Dempsey-Tegeler & Co.,
South La Salle
30's—List of selected
the
Analysis
Can-'
.,
addi-
"tion
Members
—
Wall Street, New York 5, N.
—In current issue of
1
Inc.
*
with;
fee of
5, N. Y.
energy
Hiy^ Country Club,
$7
In
S3:
Street,
Co.—Analysis—Stanley Heller & Co., 30 Pine
&
New York
W., Washington 7, D. C.
Burnham
In
Paulsen
—
is
green
a
Cleek-Tindeii
Co., Inc.,J
Building, Spokane I, Wash.' Also available is a'
on Mining Stocks. •
'
^
v-r:;
Exploration Co.--^Bulletin
Dante
outing June; 6 at
ton, Mass. Tariff
38th
their
hold
will
summer
-the Blue
Traders
Securities
Boston
The
Association
annual
Co., Inc., 39
South La Salle Street, Chicago 3, 111. Also in the same bul¬
letin are* discussions of Colorado pil & Gas Corp. and Cog
TRADERS
ASSOCIATION
i
Colorado Interstate Gas Co.—Bulletin-^-Leasoh &
firms mentioned
eend interested parties
to
NSTA Notes
BOSTON SECURITIES
Co., Terminal Tower, Cleveland 13, Ohio.
is a memorandum on Jessop Steel Co. V-.-&
'
Meeds,^20*^
-^;LMrd, Bissell
Broadway, New York 5, N.'.Yj
f
"
Beneficial Standard Life—Booklet—Robert H. Huff & Co., 210
•;
.
West Seventh
It is understood that the
Chronicle ..'.Thursday, June 6,- 1357
Association
Philadelphia, summer outing
Whitemarsh Country Club,
Whitemarsh, Pa.
June
21, 1957
(Philadelphia, Pa.)
Philadelphia Securities Associa¬
tion annual outing at the Overbrook Golf
Club, Ithan, Pa.
Volume
185
Number 5644
...
Commercial and Financial Chronicle
The
(2621)
year
Fluid
A centennial salute to
water
supply
teries of them
are
Bridgeport, Conn., has been better
modern
fields
off -: by
bined,
"many
several
other
United
dam-sites
metropolises
than
in
the
home
•by
'
For
century
•
Bridgeport
r» -
All
Company
has
not only been
ajnply provid-
•
i
n
unusual
:
the
.this
highly;
and
steadily
>'ening
companies
w'd-
«ra
O.
CobleLgh
but,, by the
indefinite future.
exer-
y
was
enterprise.
fire
a
is
that
most
'
1845
ades
there
of
chemical
end. You
on
a
more
of
out
bondholders took
over
Hydraulic
Twenty
t
wasn
the
and Bridgemoney,
Company
was
later another
years
enough
were
required.
They
undertaken/under the per-
sonal
direction
of
the
renowned
P. T. Barnum, dean of showmen,
sometime
Mayor of Bridgeport,
-
and
•
President ot
Bridgeport Hydraulic from 4877-1886,
(Possibly
•
step to assure water supply
washing his elephants?)
■
v-By the turn of the century,
as
•
a
for
•
dams
rnore
i
been
built
small
the
.
;■
'i_
!
<$ude, ^ only sen;ior company officers, but prom-
*nen^ citizens pfthe7 Bridgeport
and
and
water-
to
conservative
Artists
in
sans
a
Wilson in Man. Dept.
Vilas
investors for in¬
New
in
Westport, arti¬
Bridgeport, and ex-sub¬
urbanites
grateful
in
EastOn
for
the
may
all
artesians
and
Hickey, 26 Broadway,
York
nounced
retired
be
Stock
that
as
a
Exchange,
Roy
G.
At
~
the
timet it was an¬
Raymond-R. Wilson
8t Hickey and
supply for the past century—and will be in
charge of their Munici¬
those to come, 777 7
pal Bond Brokerage Department.-
have
dense
woods that
foithfu^teui^d
ti&ir^ater
same
nounced that
;
has: joined Vilas
.
Equipment Trust, Series K
i4%%
had
reservoirs
whole
a
companies,
surrounding
series
of
serving
areas,
were
Equipment Trust Certificates
(Philadelphia Plan)
a
Water
must
for
prepare
2> 1956
called
To be
$120,000 semiannually December 15, 1957 to June 15, 1967, inclusive
(accrued dividends
to
be added)
1V '
Dec. 1957
3.90%
June 1959
4.30%
June 1958
4.00
Dec. 1959
4.375
Dec. 1958
4.15
June 1960-67 7
4.45
Issuance and sale
The
•
■1
of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.
such
,
7:7'77; 7
77-7
HALSEY, STUART &, CO. INC.
was
to Oliver,
peak
demand, at m hourly rate equivalent to 103 Vz million gallons a
day. The company did this with-
W
MATURITIES AND YIELDS
July
Bridgeport Hydraulic
upon
DICK & MERLE-SMITH
FREEMAN
R. W.
& COMPANY
PRESSPRICH & CO.
McMASTER HUTCHINSON A, CO.
ol,t any
serious pressure shortage
although this is more than twice
average demand.
It proves the
reserve
capacity of the company
even during, a
sizzling dry speil ;
when lawns, gardens and people
areall thirsty at the same time—
when hoses are
merged into Bridgeport Hydraulic.'
pje are not! :
In 1905 an earthen dam contain- '
Knondoihr
running and
'
-
SHEARSON, HAMMILL & CO.
.-7-
June 5, 1957.
;
7'/: 7/7> 7','7:' 77 77
y
>' ' :7,-7,-.''.-';
Y',
7.. '. 7
•
•:
.77
y,
:\-.7; 77
peo-
>
v
7
-'o
hi.'a ti!l
: ing Bunnell's Reservoir washed.
.cn?S!
T out durine a cloudburst, and en- P'0"?'.'-!_hi¥ a s'mpie, and quite
during a cloudburst, and en¬
standardized capitalization. There
suing lawsuits for flood damages
is usually an
issue, or series, of
might well have washed out the
1st
mortgage bonds to finance
company as 'well, had it not been
permanent
plant construction,
for a court decision that declared
"A
"An
»
,,
.
the
•'
,
dams
failure
A
V
Act
God."
(The reservoir was
given to the city as a park.)
.
in
1901
hired
Samuel
P.
f
of
later
Senior
Superintendent. He rec¬
ognized the necessity for long
range planning for the water supply for. the company's1 rapidly
as
growing service area, and combed
and
surveyed
the
surrounding
terrain
for
suitable
miles,
reservoir
in
search
sites.
In
improvement
of
due
and
In
the
1st
of
ease
there
.
coupon rate is
year-end
great
part
due
to
*
Bridgeport
Hydraulic
has four major
today
with
And
in
his
vision,
Company
reservoirs
combined storage capacity
of over 24 billion gallons, drain¬
a
ing 60,000
acres
portant, too, in
of watershed. Im¬
a
consideration of
managed company, is its
ownership of 20,000 of these
acres.
Of these 20,000, 2,000 acres
are
planted with evergreens (a
money crop in itself) as a part of
-
well
a
thought
conservation
out
watershed
program.
Reservoirs
alone, however, are
enough. Wells are needed as
supplement. These ru^i between
not
a
60 and 200 feet in
depth, and bat-
Equipment Trust Certificates
(Philadelphia Plan)
of
At the 1956
item
To
To be
the
on
of
$1,200,of notes payable, incurred to
mature
$85,000 semiannually December 1, 1957 to June 1, 1972, inclusive
guaranteed unconditionally as to payment of principal and dividends by endorsement
by Central of Georgia Railway Company.
provide funds in part for $2,475,392 capital expenditures in 1956.
placed
in
due
of
presumably be
no
MATURITIES AND YIELDS
(accrued dividends
re¬
Dec. 1957
by anbther
mortgage
bonds,
course
first
awaiting,
doubt,
a
more
June 1958
to
be added)
4.00%
Dec. 1959
4.85%
4.2 5
June I960
4.90
Dec. 1958
underwriting,
4.50
Dec. I960
4.95
June 1959
pro-
pitious time in the bond market
for the
4.75
June 1961-1972
5.00
The
building of the Connecticut
Turnpike has caused considerable
inconvenience
and
this well
free
5%
Hy¬
series
also
was
an
issue
Board.
3.85%.
there
balance sheet
Chairman
the
four
bonds, totaling
$10,300,000, ranging in maturity
from 1980 to 1987.
The highest
000
Georgia Equipment Trust, Series D
mortgage
This item will
of
Central of
u
Bridgeport
are
he rose through company
ofl'icerships to his present post,
course,
77
$2,550,000
-
-
addition,; fol-
i
draulic
was
'
dozen
On
same.
"
guaranteed unconditionally as to payment of principal and dividends by endorsement
by The Alabama Great Southern Railroad Company < ;
even a
companies, like electric
have peak
loads
and
utilities,
mature
are
by pipe changes
abandonments.
These
costs
expected
$700,000,'with
to
an
imbursement to
total
be
Issuance and sale of these Certificates are
subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such State.
The
around
appropriate
made
re¬
by the
HALSEY, STUART & CO. INC.
State.
Further, certain company
property,
including
land
and
buildings housing the Construc¬
tion
and
demned
chased
Service forces
was
con¬
by
the State and pur¬
$453,000. A new and
building to house these
DICK
modern
facilities
was
constructed
last
& MERLE-SMITH
FREEMAN
for
June 4, 1957.
has
partnership in
the firm.
V
-
hardly think
depression proof in¬
an¬
general partner and
The Alabama Great Southern Railroad
•
Vilas
that Francis J. Stephen has been
admitted to general
and
reservoirs, the pipes and pumps,
the dams
&
New York City, members of the
logical appeal
•
$30 million
property such as Bridgeport Hydraulic, grossing over $4% million a year, serves its customers
splendidly with only 235 employoes. For those who like to invest
in companies where the labor
cost, as a percentage of gross, is
at a minimum, water companies
should definitely be investigated,
Two new
pressure.
reservoirs
were
yields
1
To
-
r
30 V2
can
employees and
born.
itability, makes
come.
common
dividend
or
companies have less than
fire broke out in town, and while
there
was
enough water there
:
present
enterprise which in point
quality service to its commu¬
nity, vision and competence in
management, and sustained prof¬
of
dustry.
which
ran
of
and
Water
on
certain
Bridgeport Water Company (capitalized at $160,000), built a dis-.
tributing reservoir and laid water
pipes tnrough the main streets,
In
the
depression of 1857
the
"port
>
the
Another
thing
frequently
brought forward in favor of water
companies is the small labor force
required. Dozens of small water
company
■
price
Vilas & Hickey;
interesting and
unusual
a
the
in
' y
water-
Greene and associates formed the
=
At
an
been
affairs
water:
Street,
destroyed 49
buildings and pointed up the necessity of an adequate and reliablc water supply.
Eight years later one Nathaniel
Bridgeport,
:
market
$1.60.
electronic companies, have
been,
nevertheless,
amazingly
steady
dependable earners for dec¬
;
In
of
curves
affinity of fire and water
well illustrated by the
history
this
of
with
■
privately owned companies, while
not evidencing the
splashy growth
The
is
share
per
Here then is
have
company
,7 77'
but
water
that water service is our most essential
public
utility, and that
sur-
vision, it has taken major
steps to insure an adequate water
supply for its service area for the
of
$2.10
whom
systems are municipally
owned.)
The fact is, of course,
cise of
'
about
private
1956 earne(* a*
dividend
on
out¬
corn-
of
service
a
rounding
"
largest
big
7 industrialized
'city
10th
write
of
5.25%.
makes Bridgeport
Company not only an
to
now
(overrthe-counter) ' this
this
one
are
most
area,
identified' with
for many years.
company in America. (The reason
there
are
not
more
water to
g
of
Hydraulic
There
of
current
day to the
a
row.
cash
All this water for
gallons
a
rate
•
population of 275,000. *
a
•Hydrau^c
•
com-
18 million
seven communities
served—59,000
homes and-Industries
comprising
a.
'
:
'
millions of
dry
or
spigots;
day.
a
which,
over
vide
weak
^flows
deliver
and
in
standing 495,000 shares
located in three
industry
is
sluiced
through 800 miles of pipe to pro¬
an
astounding average of 45
i d seasons,
a r
well
can
gallons
States
^troubled, in:
-
company had
v '■** :• ■?:!>vV"
company has paid cash dividends
without interruption for 57
years
an
essential, successful, and durable
utility enterprise—Bridgeport Hydraulic Company.
to
the
have had many reasons to be con¬
tent with their investment,
y The
Enterprise Economist
respect
land
Stockholders in Bridgeport
Hy¬
draulic Company over the
years
By IRA U. COBLEIGII
In
on
long owned.'"
9
& COMPANY
R. W.
McMASTER
PRESSPRICH & CO.
HUTCHINSON &. CO.
.,
The Commercial and Financial Chronicle...
explored and then if
exploited to the
thoroughly
feasible
found
Business—Why?
No New
fullest extent.
The
of
MYERS
public relations program
Unwillingness of larger firms to start
large securities firms, par¬
The
ticularly those with wire
who
aggressively endeavoring
too
not
the
solve
to
p r o
n c
systems,
earnestly,' but obviously
are
con¬
ceivable
man¬
are,
in the
writer's
opin¬
ner
ion, neglecting
not
only
a po¬
lic
in¬
cities
Myers
and
to
designed to
program
dealers who
the
attract
small
of
are
many
investment
;
scattered
through¬
town and hamlet in
The small securities
every
country.
our
dealer,
often just
more
a one man
shop, is in the category of
soul, a neglected phase in
the
most
lost
one of
segments of
important
a
business
today; namely the
direct placement of securities into
our
channels.
investment
sits
his
in
his
tiny office, usually in
alone
home,
and disregarded
when
some
behooves dealers
perhaps
except
"sticky"
issue
leave
to
he
There
This
unturned.
stone
no
is just as much the backbone
of the investment securities busi¬
man
ness
the registered representa¬
sits in a plush office
as
tive
who
in
a
at
his
large city with every facility
fingertips.
stocks.
common
own
Three-quarters of families having
an
income
Statistics
that
reveal
stocks.
there
are
ten millions of such families.
is
that
and
not
of these
investors,
millions more, are lo¬
great
a
of
many
cated
I wish to emphasize
point
millions
in
many
potential
more
serviced
office
with
less
or
by
rural
areas
brokerage
any
automatic
quotation
individual local
former
salesmen
who
boards,
but
brokers,
tional
and
house
or
local
the
loses
and
man
as
such
from
advice
outside
resents
"field"
a
education
of
As
the
with
bask
tent
to
their
own
in
the
sunshine
of
"set" methods.
trouble.
partners of the organization who
had dealer experience and
sive
importance
enough
to
are
aggres¬
sponsor
is
influence
their
not
it
and
strong
enough to put it over.
(4) Inability to get the "right
man" to contact and develop small
dealer
arrive
come
the walrus
decision
the part of investment firms, who
received
at
a
on
facilities
whereby every possible avenue of
new
production
possibilities
is
possess
own
in¬
their
to
doctrination in the securities busi¬
the
necessary
ing
:
J.
John
O'Brien,
,
?
,
CHICAGO, 111-—John J. O'Brien
has
become
associated
with
-the
O'Brien
was
:
.
.
;
is making
Coast
proposal
a
to
13
&
be
Robert
Norman
DEALERS
with 'R.
XX
thereto with
inves-
of
are
XV.
for
loaded
bear.
S.
Dickson
x^xvowxx
is ar\
&
vxo
Harris, Hall & Co.
1
w
takes a delight in kneed
g
conservative business l te es^s; Bouglas has a sanctimonious
approach, the background of an
economist
and
is
touted
by
/M
o
n/i
iL
11
a
i
(Special to The financial Chronicle)
radiotelegraph circuit to Honolulu
CHICAGO • BOSTON • SEATTLE
PACIFIC
J
COAST CITIES
"liberal" propagandists as above
i
LHmsted & Mulhall Adds
and other leading commodity exchanges
OTHER
project. Even George
that **
Government
costs
the money which the power com-
pany would ordinarily pay without
the fast write-off, and a subordi-
Pa*e Government official testified
before a committee the. other
aJ
interestover
a
20-vear
pe-
pound intel est over a zu year pe
it amounted to
a wars.
I
of
am
gift to the power
of
millions
discussing the merits
provision
by
not
write-off
the
which
a
several
of
company
companies
are
permitted to
more taxes for the rest of the 15
years. But right or wrong, the law
is on the books, passed by a
Now
Administration,
wait
until
the
generally
economists
"liberals"
this
say
is
KALAMAZOO, Mich.
A. Ell is
sted
&
now
—
the
*+
Francis
connected with Olm-
Mulhall,
Michigan Avenue.
Inc.,
123
Granbery, Marache Go.
Adds J. Satterlhwaite
Granbery, Marache & Co., 67
Street,
New
York
City,
Wall
West
.
his
pale of ordinary mortals in
thinking. G-ore is a relative
youngster, anxious to make a national reputation.
You
these
have
men,
only
to
together
Exchange,
j
of
the New York
have
Stock
that
announced
gheafe Satterthwaite, Jr., is
associated with their munici-
now
pa^ department.
the
San Francisco Stock Exchange
Midwest Stock Exchange • American Stork Exchange
AND
them the money with which to
u
members
Inc., 30 Broad Street, New
City. Mr. Bentley was formerly with Drexel & Co. and prior
Honolulu Stock Exchange • Chicago Board of Trade
of the committee
has become
Co.,
Members-
•
ernment is charged witn giving
rates, Democrat
ing Byrd for weeks to, get the
investigation under way and they
York
ScCo.
HONOLULU
Bentley With
are
Dean Witter
•
Idaho Power case that the Gov-
friendship which
order and they are
Norman B. Bentley
associated
PORTLAND
the high interest
Tennessee. These three
politicians of the first
darlings of the
"liberals." They have been press¬
Gore
R. S. Dickson & Go.
PRIVATE LEASED WIRE SYSTEM
•
haV&
Strauss
New Mexico, June 19.
que,
DISTRIBUTORS
NEW YORK
~
liberals
The
companies.
tigation which is to get underway
in
men
LOS ANGELES •
to
members
other
BROKERS
•
the fast write-off law was enacted
und.er J™man' m°re than 2'.00,?
e~° s Qnavef Jifen
*
r i*.a
"Vk"1 i°"Uh
the thing to do, but wait until the
shortly, will be Senators Kerr of "liberals" begin telling about it.Phoenix, Ariz.,
June 16 to 18; and in Albuquer- Oklahoma, Douglas of Illinois, and
UNDERWRITERS
Private leased
'
_
__
f? happens that Slnce
f-
enjoyed with Secretary of the saturate the country with the picTreasury Humphrey, is reported ture of the Government holding
to have perceptibly cooled off be- down spending by the people and
cause
of this.
More important is enriching the coffers of the banks
the fact that the most vociferous and
insurance
companies.
The
visit
r m a n
4f
?
he
where
dealers;
INVESTMENT SERVICE
SAN FRANCISCO
for a painful surprise,
everything he is reouted
but it so happens he is op-
Byrd is
and
will
i
Eisen-
to handle
surprise,
and the beautiful
he
differ-
take depreciation for a new plant
this delicate study in the way it in five years instead of spreading
should be handled, with no politics, it out over 20.
The fact is, of
I am satisfied that our banking course, that once the depreciation
and insurance fraternity is in for a is taken, the company has to pay
He could be relied upon
1
geles June
15
the hope the
would die down.
posed
and
New York Stock Exchange •
the slightest sup-
11; in Los An¬
to
Not
to a tee.
_
in
10
iust
reasoned they were in safe hands,
is a stalwart American, a
extended trip conservative and no
Springs
June
so.
com-
was
Byrd
dealers.
be
this
depart-
spondents and
will
do
insurance
But, finally, getting an investigation in the hands of Byrd, they
corre¬
Palm
too
far as this observer could
did they give the Administra-
whole thing
call
to
his
on
an
one
This
would
and
and
thought
port, presumably in
West
the
to
Beck
™oney because it has to borrow;
It suited Uiem
tion's
ment for Daniel F. Rice and Company,
No
and
funds.
an
once, so
on
trading
tax
alleged
that,his committee aiauthority to make the
d
basnki
fi
CHICAGO, 111.—Robert Strauss,
the
union
com-
this
Humphrey has agreed with them
investigation
Trip to West Goasl
of
h
miin;+ipc
see,
Manager
has
of
Committee,
Finance
Senate
The
O'Brien & Co. which has been dis-
for
the
to
Patman
be
attempt
Senator Byrd, Chairman of
d
partner of John J.
a
to
only
an
Senate
similar
bv
ann0Unccd
III
Paine, Webber, Jackson &'Curtis,
209
South La Salle Street
Mr.
the
in
defeated rather easily. Where-
upon,
III
„
Morse
bower, he has said. Beck reached
int0
the
pockets of
the
union
communities
oars,
when
excited
investigation
was
spondent firm,
lot Angeles Stock Exchange •
their
on
made
was
Co., his corre¬
.
has
Power
Dave Beck's
between
1
"roup
insurance
and
rested
mildly
F
Complete
was
of
After Patman's defeat, the bank-
He
"The time has
Idaho
granting
ence
it
non-political
other
interest.
Dam
and at members, Eisenhower reacled into
somewhere
get
Senator
theft
•
Robl. Strauss
have
the
to
the
pared
monetary situation, they
done by a responsible,
wanted
program—only the younger
realize its
against high interest
tight money. This agita-
to
general
(3) Many partners of firms are
sufficiently
familiar
with
a
Canyon
Government
there had to be scrutiny of thethe pockets of the taxpayers.
;
not
such
it
this wldte-off with
made
lion, he or his advisers knew
going
solved.
-
by effable
The Presi-
undoubtedly
had
rates and
(2) The firm will not make the
setup such a programmuch
Hells
The
of those fast tax write-offs and
Congress
in
effort to
too
something
get The this «<iiberai» crowd is off again
President yelling bloody murder. The in-
proposal to head off the agitation
as
writer,
the
to
been
have
employees
Most of these small deal¬
operate from their
dent
With Paine, Webber
help
of these managers and older
for
in
Company and it has been upheld
by the courts. But then the power
company comes in and gets one
to
which
committee
civilian
a
to
such
pressure
study
Eisenhower had proposed, one
John J. O'Brien III
or
producers. Note:
explained
was
many
of
nronosed
or
man,
with
up
sort
program:
a
Carlisle Bargeroo
banking
this
.
educational program.
The branch office manager
(1)
it
to
their
substantiate
formulate
justify
inability
effort
an
the
awarded
what
gentry failed to do was to
well run dealer
Following are some of the rea¬
advanced by representative
by
have
a
sons
in
of ,the impression
am
are
project.
incii^pfo
operation.
selves.
homes
develop
likewise
of
accounts through this
firms
I
they
Take
to fear
the
opportunity to gain many
lack of co¬
an
gen¬
and
commodity
result
a
said"
who
result
a
or ;
dealer) the wire
large firm antagonizes
have gone into business for them¬
ers
listed
small
the
ing
had
But
(and eliminat¬
the business direct
re¬
and
like the early New Deal persecu¬
tions.
him.
attract
attempting to
that
com¬
reason
in
munities.
the
munity
erally
far
so
mass
a
financial
capable
are
rank
file, so
popularity, so
susceptible to mass prejudice, as
the banking and insurance com¬
money
and
man
from
could
business
as
industrial firms
individuals in his ter¬
By
lacking
about
appre¬
—
officers,
many
ritory.
of $7,500 and over per
annum do not own common
The
"inside
firm for many years and are con¬
According to reliable sources
of information, four out of five
professional men, including exec¬
utives do not
in many cases, has the
track" with the institu¬
local man,
pub¬
thousands
out
E.
Elmer
is
Patman
another "mistake" as I see it.
a
relations
larger
the
mone¬
loose
offices—is
The
established
have
firms
where
towns
or
the
they
just what
doing to something
moved from
tary situation.
new
any
of
investigation
of
100 to 1,000
offering, sec¬
ondary,
or
distribution of any
kind
the annual volume could
assume
interesting
proportions.
of
ciate
an
for
are
now doing
Canyon Dam to
Hells
of
Patman
be
not
word in the homes of the country
the
tlve Wright
be interested in tak¬
anywhere
ing
shares
insurance Kefauver and others styling themsigh of re- selves as "liberals," made an ugly
they
?epT,J:s®nt,a'I
develop
would
it
would
a
resolution by out of the Dixon-Yates deal and
what
a&° voted down a
physically possible for one man
to successfully cover and develop
more
than say a 100 dealers at
a
time.
However, it is well to
consider that if 50 of those dealers
were cultivated
to the point that
they
and
lief when the House several weeks
unlimited
the
attempt to conscientiously
small dealer business.
Substantial
Competition rather than co-op¬
with the local dealers in
by not
appeal
clients.
eration
adopting
definite
that
knowledge
for
and
banking
Texas
important cogs in our fi¬
fraternity
are
literally
these
The
communities heaved
most
century
visualize
us
Obviously
common
ad¬
of
ditional
come
is
tion
tential, but a
very probable
source
It
de¬
add the under¬
potentials involved in an all out
attention from the
larger firms who are in a posi¬
tion to offer them a well rounded
service in providing statistical in¬
formation, suggestions for invest¬
ment and. speculation alike, rec¬
ommendations for
switches a.nd
counsel that is at present avail¬
able only to their own organiza¬
in
production
Let
houses.
ment
is
of the News
By CARLISLE BARGERON
unfortunate."
by virtue of representing at
time one of the large invest¬
starving
over-all
every
one
(although
field
our
the
of
statement
nancial
b lem of
r e a sing
their
ness
in
and, to
plorable
in educating
aggressiveness on part of investment firms
own producers in branch
offices.
Ahead
securities
the
in
The negligent
man"
''little
designed to attract and improve dealer relations with small
dealers throughout the country discussed, together with lack
of
the
1
Washington
unintentional)
attitude
larger firms toward the
possibly
of
the
are
based on many years
experience
business.
By EfcMER E.
expressed
own
From
„•
ideas
writer's
the world—
The small security dealer"
"The lonesomest man in
i
Thursday, June 6, 1957
(2622)
10
.
A. C. Ailyn Appoints
GARY,
Company
Ind.
Inc
A.
C.
Allyn
have opened
a
&
new
Sales headquarters at 9 West Sixth
under the supervision of
Avenue
realize how Charles
D.
Hubbell,
with Estes representative.
registered
Volume 185
Number 5644
'
..
...
The
Commercial and Financial Chronicle
:
•
.■
.
V'
■
.
.
Any Danger in
By
tect
HAROLD
S.
VANCE*
'
;v
In
the
trol
probable
drawn,
ately are always with us, the
subject
commanding
the
most
attention
in
77'--'
able
tial
good
tial
evil
than
anything
else
of
nature
deal
with
of
I
time.
going
am
to
dispose of the evil possibilities of
energy
first
because
I
nuclear
discuss
to
want
much
with
the
more
which it
The
ex¬
thousand
nuclear
Hiroshima,
is
contemplate.
bomb,
destroyed
awful 'thing to
it can de¬
an
En
a
masse
stroy nations, not just cities. Com¬
pared with it, all other instruments
destruction
of
Yet
think
I
for
peace
are
that
will continue to do
of
cause
its
has
so
fearsome
destruction.
things.
kept the
puny
it
in recent
us
and
years
simply be¬
power
of
And
beyond keeping
the peace, I firmly believe that
in time it will compel internation¬
al
agreements to disarm, to settle
disputes by means other than war
—agreements which otherwise it
would be impossible to obtain. If,
in fact, war is abolished because
of
fear
our
nuclear
of
bomb
what
the
modern
do, then shall
be closed the first chapter of his¬
which
tory
years
has
wars,
and
man
we
a
thousands
of
principally with
chapter shall be
will
deal
with
over
new
which
opened
peace,
can
dealt
not
and under peace with hu¬
far beyond anything
imagine today.
The good
possibilities of nuclear
take on many forms such
energy
the
as
power;
—and
generation
of
heat
and
the propulsion of vessels
perhaps later of large land
vehicles
and, also, later of air¬
the use of radioactive isoin. biology and medicine,
craft;
topfes
which
even
now
are
used
wreak
can
have
familiar
ar¬
destruction if
tamed
\
we
v
^
these
other
power
of
sources
where
to the
complacent
are
and
as
exten¬
lives.
I
am
the
on
efficacy of safety measures.
There is just as much difference
between
controlled
actions and
<
nuclear
re¬
so
called
the
electricity in a dynamo and a bolt
of lighting, or between the power
of a water wheel and the rushing
waters of a flood. Let me explain
to you why this is true.
The atom of uranium, like all
other atoms and despite the fact
that it is
While
>
rise
in
temperature acts
automatic brake
the
Nautilus
are
industrial
but
uses
a
few
of the many
of radioactive iso¬
Then there is the field
of
agriculture
where
radiation
speeds up the production of mu¬
tations, or sports, and helps us to
select
superior
plant
strains—
those
which
are
more
prolific,
topes.
by Mr. Vance at the 91st
Annual Meeting of the National Board of
Fire 11-derwriters, New York City, May
23,
1957.
nuclear
tional
reactor
is
they
excepting
starting and stopping because
the inherent ability of the re¬
in
of
I
think
I
safely
may
that
say
the possibility of a bomb-like
clear
explosion
occurring
reactor
is
so
remote
to
as
nu¬
in
be
a
affect
the
be
accident serious enough to
the public in
reactor
site
it
have
design
the
one
in
num¬
chance in
a
billion per
each large reactor.
The
thef chances of such acci¬
for
are
sp
thorough
low is the careful and
attention
given
to Lreactor design and operation in the
Commission's
safeguards
pro¬
gram.
and
Possible consequences of
a
reactor
This is under
an
no
offer
possibility of
trophe
An
to
the
reactor
to
reduce
public
a
lowest
catas¬
limit
of
For
as
our
can
purposes, a power re¬
be physically visualized'
nuclear
a
vessel
massive
tions
in
the
for
with
reactor vessel/
a
nuclear
whole
large steel shell
a
contact
is. surrounded
shield
and
in
core
coolant held in
a
though the reactor
vessel need not
constructed for the high pres¬
needed with an aqueous
be
sure
sys¬
tem. .""7
Describes Process
actor
are^ conceptually similar to the
aqueous
homogeneous
reactor,
is
or
by
shield, usually of concrete, whose
purpose
ing
crew
tion
containedvapor con-i
is to protect the operat¬
from the nuclear radia¬
produced
a
radia¬
7v:V.7:';4 //'■
In all of these reactors the ves¬
sel is surrounded
by a massive
operation.
tem
is
steel
«
during
shell
or
the very
vapor
size
by
of
The
the
fuel
in
containment
the
fission
elements, each clad/
persal.
protective sheath of a metal-
a
We shall discuss its func¬
chosen for strength and corrosion^
resistance as well as for good nu¬
tion in
clear properties.
what
The
coolant
through the
sodium
or
for
from the
the
to
passes
reactors
present
coolant
core
which
is either water
core
a
under
considera¬
usually
passes
heat exchanger
where the heat is used to producesteam for the turbines, though in
the
case
of
the
actor
the
boiling water
coolant water
tor
re¬
is vapor¬
ized to steam directly in the
reac¬
For
water
or
heavy
reactors, the coolant moder-.
core.
water
ates the
neutron energy to
en¬
ergies equivalent to ordinary tem-.
peratures; in such reactors the
As
more
detail later.
start the consideration of
could
go
wrong with
the
we
operation of
should
that
a
a reactor system, we
dispose of the supposition
gross malfunctioning in a
reactor could possibly lead
devastating explosion similar
produced
by
nuclear
power
to
to
a
those
There is no conceivable
way in which this could happen.
Though a,.reactor contains the
weapons,
same
nuclear materials
as a bomb,
in dispersed form, mixed
with
other
materials, and they
are
not provided With the care¬
they
are
fully devised
them
means for
together
with
Continued
to
the
is
only
atom
individual
when
the
induces
quick
on
<u
150,000 Shares
The Trane
but
in
of
Company
one
millions
Common Stock
chain reaction
a
to
be
an
atomic
as
taneous that
fission
fission
of other atoms in
so
atom,
almost
or
simul¬
(Par Value $2
nuclear
per
Share)
explosion is produced.
In
1942, in Chicago, Enrico Fer¬
mi and his associates first demon¬
that
there
a
was
way
regulate the rate of the chain
action
so
would
to
Price $46,625 per
re¬
Share
proceed
the
that
fission
process
slowly and would
produce heat but not so rapidly
as to
produce an explosion. Fur¬
thermore, he demonstrated that
the
could
process
speeded
be
slowed
up,
Copies of the Prospectus
be obtained from the undersigned only in those
legally offer these securities in
compliance with the securities laws of the respective States.
and
down,
mar
Slates in which the undersigned may
started,
stopped within the time necessary
keep it under complete control.
reactor.
are
a
core, or
contains
usually
the
more
to
a
Smith, Barney & Co.
years
fuel element, which
fissionable
uranium-235;
which
tor,
trons
7
machine, first made
ago is called a
Its principal components
by Fermi 15
slows
speed
efficient
a
down
where
in
Blyth & Co., Inc.
Kidder, Peabody & Co.
Lehman Brothers
material,
modera¬
the
ne.u-
they
the
Lynch, Pierce, Fenner & Beane
White, Weld & Co.
are
sustaining
Merrill
chain
reaction; and control ele¬
ments, which are usually rods of
material, such as cadmium
boron, which have the prop¬
Dean Witter & Co.
Clark, Dodge & Co.
Dominick & Dominick
some
or
of
of free neutrons
be
Equitable Securities Corporation
absorbing large numbers
fewer
of
so
that there will
them
available
keep the chain reaction going.
to
Of
June 6, 1957
.
.
bringing
great-
or as a
other standard is small. It
any
sys¬
large
vessel which is the characteristic
core,
feature in the outside appearance
reaction takes"
of a nuclear power station.
The
place and where the heat is gen-;
crated, is in most reactors a solid; purpose of this shell is to con¬
tain the products of
metal or
any possible
oxide in
the
form
of.
accident and to prevent their dis¬
many separate
tainer.
where
universe within
a
normal
Finally, the entire
enclosed in
he construed as an offering of these securities for sale, of
solicitation of an offer to buy, any of such securities.
The offer is made only by means of the
Prospectus.
buy,
power
cooled
operation.
pressure
•
credibility.
circumstances
to
the
as
is
was" by
sodium, the reactor vessel need
Na¬ not be
constructed for such high
group
in
out
operation
The
ranging from
100,000 to \ one in
year
carried
tion.
resulted
and
the
which
be
slight as to
Attempts to es¬
bers
If
way that the
reactor vessel to make a
liquid
they can possibly produce effects
core and is
pumped around to the
beyond the. immediate installa¬
heat exchangers for heat removal.
tion will help us to understand
Reactors fueled by liquid metal
the
type
of
precautions
serious
so
a
Yankee
stations.
important exception to the
A review of the
general description is the aque¬
picture which this group has de¬
ous
homogeneous reactor where
veloped on the nature of conceiv-*
the fuel is dissolved in solution in
able accidents and the
most
is
incalculable.
timate
Laboratory by
around
areas
The
study
Brookhaven
at
reactors
Shippingport
large
of
scientists and engineers assembled
es¬
sentially non-existent. The chance
of any
out
in
the
pressurized water
for the purpose.
in
actor to otherwise control itself,
accidents
contain
pressure Adequate
pounds per square inch is project¬
ed
as
normal practice
for such
a
plants.
carried
infinitesimally small.
erty
♦An address
fission.
on
equipped with control rods,
have seldom been used
itself,
When it
fissions
and
loses
mass,
the
amount
of
energy
thereby re¬
leased is great in relation to the
is
to
These
tern-,
of
must
a'
operating
temperature.
operating pressure of 2,000
An
spon¬
study of the
possibilities and con¬
theoretical
coefficient of reactivity.: The
The device, or
use
negative
vessel
11
there is between the generation of
in industry where
they
measure
and
control the
thickness of material, control the
flow of liquids in pipelines, detect
flaws
in
castings and
forgings.
their
natural
a
reactor
to a
request
Committee
on
Joint
sequences
of
successful in the sub¬
nuclear explosion as
a
sively in both diagnosis and ther¬
apy;
types
some
Nautilus, there is
the
an
dent
daily
our
that I need not dwell
In
so
response
Energy,
the
on
rate, of fission increases,
temperature in the reactor rises;
surround
sure
in
the
reason
strated
1
no
properly controlled.
We
progress
can
All
etc.
As
about them although they literally
powerful
more
which
one
inher¬
gument; but so is every other
powerful source of energy, elec¬
water,
point
times
the
things
do.
can
modern
than
good
many
is
energy
tricity, gas, steam, falling
tensively about problems connect¬
ed
Involved
nuclear
factor.
perature
safety
ently dangerous admits of
Vance
be¬
the
since
ginning
H. S.
incorporated
complex so that con¬
automatic and are almost
are
marine
v
That
been
de¬
reactor
has been
It is hazards
counterpart,
In particular I will deal
Danger
had
have
in
the
must
actor is controlled.
Electronic and mechanical
human
to;
lations.
which
has
man
be
can
are
Recently the Commission
reactors, for example that which
I
so
seems
material7
a
to
to
with the danger of personal in¬
jury and property damage to the
public from nuclear power instal¬
poten¬
fission
control
all
which
one
appropriate.
measures.
and-
them
cover
their
and
poten-'
more'
resistant
facets to this subject of
uses "• of
nuclear energy.
cannot
be most
of
vices
there
We
suc¬
■the
over
have selected
en-,
contains
ergy
.
hangs
many parts of the world.
peaceful
because
more
/./
You will appreciate that
is understand¬
are
started,
up,
slowed
down,
or
stopped; This is something of an
oversimplification of how a re¬
im¬
still
con¬
with¬
speeded
the threat of star¬
which
many
the
neutrons
trols
more
remove
vation
As
available to induce fission in
The. nuclear process will
help to
absorbed
gradually
free
more
fraction
a
are
entirely free of dependence
fruitful,
disease.
are
This
nuclear
more
to¬
press
day is nuclear
energy.
of
series
are
takes
ceeding atoms, so that by chang¬
ing the "% control rod position, the
happening together.
events
After crime, politics, and inter¬
national crises, which unfortun¬
the
whole
reaction
no
•
rate
study of possibilities—avoiding a background of
early mishaps. Refers to perfect record of safety or regularly
operating—non-experimental—reactors since 1942, and asserts an accident of a
ruptured reactor vessel and its vapor
a
reactor, when the
fully inserted in
accident
we must take maximums
water "Under
precautions against its occurrence.
for
the
from
are
core,
rods
reactor
Atomic
by the control, rods.
c-'-U thorough
from
rods
fuel
serious
great that
sored,
.
.
place because too large
industry is convinced that reactor dangers
by controls and requirements based on
result
a
pro¬
Control
of the free neutrons
relates,
to
.
typical
a
control
Mr. Vance declares nuclear
power field is the first industry f
where a careful and objective evaluation of risk has been
made before commercial usage. As a
result, Mr. Vance
have
..
Reactor
developments introduced with uninformed and
unjustified optimism about safety, as in the case of automo¬
biles and in the early exploitation of other
energy sources,
would
shielding to
operators, a coolant to
off the heat, automatic con¬
trols, etc.
Member, U. S. Atomic Energy Commission
the nuclear power
can
be eliminated
other parts to
are
as
the
carry
other
container
there
reactor1 such
Nuclear Power Plants
■7
(2623)
course,
Is There
Unlike
ii
.
Hornblower & Weeks
speed
page
,
26*
12
The Commercial and Financial Chronicle...
(2624)
ingly important role in bank lend-V
ing.
£/?■*■:
NADLER*
By DR. MARCUS
Professor of
-
.
analyzes seven changes affect¬
Banking and ? offers, several suggestions to
strengthen commercial banks' ability to meet increased future
.Well-known banking economist
■
will not take place until 1959 or 1960. Doubts
and suggests thai banks adopt
policy of first liquidating ; long-term government securities - in¬
stead, of '.short-term obligations when loan-demands increase.
Offers an investment pojicy geared to permitting increased
interest on commercial bank savings deposits.
of
the
and
have
war
been
;
v
had
pro¬
a
effect
found
the
com¬
mercial
banks
on
the
'of
coun¬
Briefly,
these changes
try.
-are:
(!) A rapid
in
population has
growth
been
accom¬
panied
by
an
in
period of transition is not
Nadler
fO)
centralization
of
to
position
of
individual
the
will
among
pressure
in-
inch
and the purchasing the future it will probably be ad¬
visable
to
reverse
the process.
the dollar is bound to
upward
of
power
banks decline.
situation
+ The
aggra-. When the demand for loans begins
is
merge.
The
■. s..
Population
Middle
and
Class
''
The
rpfcg d^-
the
The
of
Movement and
Population
Growth'of
the
increase and
:
Middle
Class:
decentralization
population, the growth of new
Changed International Poof
sition
had
Growth
U
and
industry has led to the growth of
the
Trade
and
mercial banks.
■>
population
the
.
the? middle
class.
and
It is likely that efforts vated by the strong inflation bias to increase it will be advisable
yet over. The American economy will be made to change the laws in
government. Expenditures by first to sell the long-term securi¬
remains highly dynamic, based as
of the States where branch bank- government — Federal, State and ties and to retain the short-term,
it is on a rapid population growth
ing is permitted to extend the local —are steadily rising. The in order to have adequate liquidity
and on continued research which
limits within which a bank may farm-price support policy of the when money becomes tight, inter¬
creates new values and destroys
operate branches.
Similarly, ef- government stockpiling, and the est rates rise, aftid. bond; prices
old ones.
The changes will con¬
+'orts
will probably be made
If the banks
to lack of fiscal discipline contribute decline materially.
tinue and new patterns will ap¬
permit holding companies to oper- materially
to
the
inflationary were to adopt such ^ a policy It
pear.
A new economic system is ate on a State-wide basis. While forces.
would strengthen their own posi¬
X"/ '
being evolved which may be aptly considerable opposition may arise'
tion but at the same time it wouid
The constant increase in prices
termed "People's Capitalism." An
weaken the effectiveness of the
to
such moves,
it is clear that arKj jn the cost of
doing business
analysis of these great changes
credit policies of the Reserve au¬
jmus.
.
has had a marked impact on the
will make clear that each of them C0S^e+C
nutted to adjust themselves to the commercial banks. Since the vol- thorities > unless,
of course, the
has had an impact on the com¬
economic needs, of the country.
Treasury, through refunding oper¬
ume
0f business is bound to ex-
large1 ihcrease
Marcus
Movement
Concentration
Industry
crease
The
especially
in
The
interest rates
on
manufacturing, ;mining
jn
With
questions for the banks: namely living index services play an im- sound and will continue to be
be a proper.-ratio ol
sound.
However, whereas in the
p0rtant role, and in many instances
loans to .deposits and how can the an increase in the consumer index past, whenever the demand for
banks'
capital resources be>;in- lea(Js to an automatic increase in loans increased,4 banks first liq¬
creased
in
order
to
sustain
a
uidated their short-term
obliga¬
wages. So long as wage rates conlarger volume of risk assets.'
tinue to rise, prices are bound to tions and held the. long-term; in
and bond prices.
numerous
far-reaching, and they have
effect
impact
an
rates and bond
what should
•
marked
naturally rhave
money
,^sen. substantially^ •
m- agriculture, itA is not "possible tc> bank, these securities were spaced
termittent swings, the demand for increase the efficiency of employ- from short-term bills to long-term
bank loans will continue upward.
obligations. Such a
ees
in the service industries to government
This in turn will raise important the same extent.
In the cost-of- policy of spacing maturities
is.
likelihood of major depression,,
a
on
■
ably, while the yolume of/Joans
other upsurge
The economic and social changes
and
strong inflation bias in the United
of disposable
has
Looking ahead, Professor Nadler expects economy
off'within a. few months and finds it possible that an¬
demands.
in the United States since the end
s^ai?(^""
.
Consulting Economist to The Hanover Bank
to ease
which
.
Banking and Finance, New York University
ing commercial
to-adopt stringent credit policies
The Inflation Bias: There is a
prices,
the expansion states, generated primarily by a particularly of high-grade bonds.
V...■' i \'i'.*■ '/
*■* *..' j'
personal income has wage-price spiral. An increase in
Different Bond Portfolio Policy
come an increase in deposits and
wages
greater than the rise in
in the number of people in need
These trends, in turn, are bound
productivity leads to an increase
ol banking ^facilities. As a result,
to affect the investment policies
jn
cos^ 0f production which, at
the earning assets of .the; banks
]east in part, is shifted to the ulti- of the commercial banks. In the
have
undergone
considerable mate consumer in the form of past, whenever banks had excess
change. ;The volume of invest- higher prices. Moreover, while it reserve balances,- they increased
ments, notably government se- jg possible to increase consider- their holdings. of government se¬
curities.
curities, has decreased considerUsually, -depending on
ahly the productivity of workers
rifein
of living
ard
Transitional Economic Changes
;^rlce and Cost Inflation^
^
#
Thursday, June 6, 1957
the
States
United
has
pand
the
of
the
and since costs will
con-
with
economy
growth
the
following: effects: With tinue to rise, it follows that the
world leadership has come an in- banks will be confronted with a
crease
in
responsibility and in constant increase in the demand
government costs enhanced by the for loans. At the same time, these
cold war and the aggressive atti- forces will raise the banks' oper-
ations, (M reduce the amount of
short-terrrt obligations
and
convert
them
outstanding
into
longer-
term notes and bonds.
The Economic Picturer
From
present
it
indications,
woud
appear thatthe
economy
Military ating costs. The banks will have
will ease off within a few months.
expenditures are enormous and, to rely more and more on mechmany new communities.
standard of living have had the
It is also possible 'that another
despite all the efforts to econo- anization, and this too will tend to
(3) The concentration of indus¬
following effects on the commer¬
strong upsurge will not take place
mize,' in all likelihood will in- foster the merger trend,
try, trade and banking has con¬
cial banks:
until about 1959 or 1960.
Once
crease.
Foreign aid is substantial,
X ;
tinued.
/l.J'i...
'
;
this occurs, however, the upsurge
No Major Cyclical Swings - :
(4) The United States has mate¬
(1) They have created a strong and a material decline in this item
is likely to be more pronounce"
rially increased its commitments desire on the part of the banks to in the foreseeable future is not ; The New Pattern of Business:
than that witnessed in 1955-1956.
in international affairs, and this follow * their
customers
to
the likely. As a consequence of these Barring unforeseen developBanks
which
have
followed
a
in turn has had a major impact suburbs and to participate in the developments, the tax .burden is ments, major depressions of the
on
Federal expenditures and on growth of new communities. This very heavy. The corporate income type that occurred in the past are .policy of coordinating their in
vestment policy with their k>4»
taxes.
X- X/VxV-i' ;=.
* in turn has led to opening of many tax has remained at 52% and it not likely to recur,, There are
policy, ie., which, increase Jtbej
and .„CQntributed" has become extremely difficult for many built-irf stabilizers 'in: the
(5) The swings of the business s new., branches
holding of medium^ Ahd long-ter
cycle have been materially re¬ materially to the' bank ? merger' many industrial corporations to American Economy, sUcft as social
meet their increased capital* re- security/ farm support, amortized, obligations- when the volume 0
duced. Economic adjustments now movement, which has been pro¬
loans decreases and reduce the,
in
all
States
where quirements from internal sources mortgages, the growth in economic,
tend to be "rolling" in character nounced
.when the yolume of loans rjses
rather than embracing all seg¬ branch banking is permitted.
or
sale of securities.
They' are security^and savings,
many will be prepared for this grea
.v*
•
'
ments at once.
others that could be mentioned.
(2) They have created a new therefore forced to rely more on
upsurge*in business activity. The
Moreover, the Employment Act of
; (6)
During the past few years a supply of mortgages and opened the commercial banks for their
wi|ll be able to meet the require
1946 has imposed on the Federal
strong inflation bias has become up new lending outlets for com¬
ments of their customers withou
evident, and the cost of doing mercial banks, particularly those working capital needs. The banks Government the obligation to pre- having to sell bonds at a loss.
business is steadily mounting.
unemployment.
operating with large savings de¬ are also adversely affected by the vent large-scale
.Divestment Policy and Interes
hiffh
howeveiV the American on Savings Deposits: In mos
! (7) Finally, for the first time in posits. With home ownership also high cornorate taxes and thev too Since'
coipoiate taxes, and tney too
economy is a free one> it is bound
comes the ownership of all kinds
many years monetary controls are
are endeavoring to increase their
banks* savings
deposits play a
to have its ups and downs. again being used effectively, with of durable consumer goods, and own
important part. . The growth o
capital resources to meet the
The business swings have asparticularly automobiles. This has
many
institutions often depend
J *An address by Dr. Nadler before the
stimulated the growth of consumer expanding requirements of their sumed the character of a rolling on their
ability to increase thes^
New Jersey Bankers Association, Atlantic
readjustment in which some sec¬
loans, which will play an increas¬ customers.
City, May 24, 1957.
deposits.
Savings deposits hav
tors of the economy are strong,
undergone important changes an
while others are weak. When the
to a considerable»extent have as
strong sectors outweigh the weak
invest
sumed the character of
ones, the economy moves ahead.
All of these Shares having been sold, this advertisement appears
ments. Hence, the rate of interes
For example, in 1956, in spite of
paid on savings deposits plays
as a matter of record only.
the considerable decline in home
much more important role toda
starts and automobile output, the
than ever before.
When a com
NEW ISSUE
These securities were offered as a speculation.
economy
was
at a higher level
mercial bank wants to maintaii
than in 1955.
The rolling read¬
its growth in savings deposits, i
justment has a different impact
has to compete with mutual sav
700,000 Shares
not only on individual industries
ings banks and savings and loai
but also on various regions and on
associations, which traditional!
the credit position of individual
pay
a
higher
rate of interes
buyers. Thus, although 1956 was
suburbs and
the establishment
of
communities
and
the
rise
in
tude of the Soviet Union.
the
.
,
•
-
and
;
.
n
j
i
.
1
.
Quinta Corporation
Capital Stock
per
number
Share)
failures
was
ence
pattern of rolling readjust¬
on
also had
a
strong influ¬
the credit policies of the
Reserve
authorities, and through
them
Share
the activities of the
on
mercial
credit
banks.
Federal
com¬
Reserve
policy has become highly
In periods when business
flexible.
Frederic H. Hatch & Co., Inc.
New
activity is low and unemployment
Minor, Mee & Co.
Albuquerque, New Mexico
banks
their
a
own
effectively, howeve
have
to chang
will
investment policies. A
rule of thumb,
the following i
suggested: About 60% of savin
deposits should be invested i
home
and
mortgages, preferably FH.
VA, particularly for those i
stitutions
which have
a
low rati
of
ratio
monc
y
market through lower¬
reserve
creasing
chases.
its
requirements and in¬
open
market pur¬
On
the
other
hand, in
periods when business activity is
at
May 31, 1957
such deposits.
To do this
the
the
ing
Nashville, Tennessee
on
is rising, the Federal Reserve eases
York, N. Y.
Clark, Landstreet & Kirkpatrick, inc.
paid
Suggests Investment Policy
The
per
business
of
had to increase the rate of interes
large.
ment has
Offering Price 50|f
that the
enjoyed, the
has
States
United
(Par Value 5^
Commercial banks have therefor
the most prosperous year
or
ary
near
ered
or
as
non-risk assets.
25%
should
medium-
and
capacity and inflation¬
pressures
serve
capital to deposits and a hig
of
capital to risk asset
FHA's and VA's may be consid
are
authorities
strong, the Re¬
do
not
hesitate
tions,
rate
either
or
be
About
invested
long-term
government,
tax-exempt.
i
oblige
corp
Aside
fro:
Volume 185
:
Number 5644
'T
.
../
(■'.
The
...
;
•
Commercial and Financial Chronicle
:
'.
.
■
•
(2625)
■
13
the 5% that has to be maintained
-as
with the Federal
reserves
affected the level of Government
Re-'
serve
Banks, the remainder should
held in obligations of 1-5
years.
be
•«
Conrlu<iinri<s
place
changes
.
r
s
.
The
that
aahh
...*■—
r
^
in
baling during the past
-reflect, the great economic
decade
ata0aaiaiuiavuh*
,
•
•,<;
>.
*
;
_
.
the .role of the commercial
banks and will continue to do so.
;The greatest impact
will be the increased demand: for
Vv;
,
JosiQS.^ Iliis,vin. turnr,Willr requirei
,
larger capital funds for the banks
f j
larger staff of highly trained
a
loan
•
officers
handle
to
the
uMomAarity of
—,
j
a
f
for
tho
ic
^«™rn,r.
I
■
.
.
fovnrohio
towards
n
-
i
the middle of May
ah
in-
the
Gov-
-
_>
; ;
.
of
5
'
.
impar-
And
it would
ActionOS
.Taklng unpopular
selfishness
each
cerned
of
of
one
the
which
with
trade-unions,
is only "con-
securing the maxi-
of immediate benefit for its.,
,has been relatively .little .induce-- .members., tvkhopt^tfacr-aUditMt
> .
■
-
-
was
free
to have
business
will
fall
by
the wayside.
so,
irre-
of
means
device
around
Stock
t ions
cannot
re-
re-
;
markably low.
And
Dr. Harold Stonier
c e n
Einzig
Former ABA Officer
away
Ac^oriatinn
nawnH
At the time of his
June 3
I
:
.
death
Dr
Stonier
-
Dean
:
G
r
was
of
ad
u
The
a
t
School
e
of
Banking
'
which
his
under
leader shin
re-
unex-
.
fall
provided
tries. I Should
inflation.
of
And
.such
a
come
would
;
rur^ it Is rSt
^vUh imnunitv
•n imPU""y.
to; Lyons; & Co., 235 South' Fifth
Street, members of the New York
coun-
Government
to realize that there is
a
Stock
real
its
loan
ruinous
operations
except
at
costs, it might be more
inclined
to
,
face
the
unpopu-
continued
it
tion
is
of
lead
the
the
to
fact that
rcaliza-
there
is
be
necessary
of
no
.
the weakness
loans should be-
interest-bearing securities.
>
after the war,,
Dis-
Some
busi-
Eugene DeStaebler
With Window, Cohu
'
Winslow,
,
Cohu- &
>T
.
Stetson,
26
__
mem-
bers of the New York Stock Ex-
DeStaebler is now associated with
the firm
as
minagcr
of the Muni-
l*ie
inciitd^r,ui,uie iviiuu
cipal Bond Department. Mr. DeStacblcr
was
formerly
an
officer
of. Fai|rna.n; Harius & Co.
such shock-blight pror,. .
■
K
»
u
salutary effect in the long •
- to Hear
run, even though its immediate
CHICAGO,' III — Edgar M.
effects would be highly damag-,
Queeny,„ chairman of the Board
ing. Unless the Government comes
■
rharips A
Thomas President
to realize that it simply must take and Charles
steps to check the wages spiral, °* Monsanto Chemical, Co. will
ducc
it did after the
as
is this week enter-
104th year of
change, announced that Eugene L.
marketmight go
a
long way
towards bringing home the need
for resisting inflation, y ^
•
'
: '
j
:
Mobilizing Public ^ Opinion
ness of Governn^er>t loans is tJie terest rates. While this was due
gi owin^ reahzation ox the pros-. in part to the adoption of the
pects of continued creeping in- Keynesian system of "short-term
flation- Admittedly, other influ- borrowing, to a large degree it
ences have contributed towards ; was due to the assumption that
doPressing the market of fixed inflation would come to an end
its
'
Broadway, New York City,
that
Government
upon
ness.'
a
should
Exchange,, and other lead-
exchanges,
ing
ing
danger of being unable to finance
entailed, the
For there can he no doubt that Treasury was able to finance it on
the ""derlying cause of the weak- ;the basis of borrowing at low in-
relation
indefinitely.. larity of a really effective disgrowing feeling in inflationary policy.
But in order,
many quarters that the deprccia- that, there
should
be
adequate
tion of Government loans might pressure to
that effect on the •
prove to be a blessing in disguise,
part of public opinion, it would
' There
if
a
be
in
overseas
the
sharp remind-• such thingxas inflation without come much more dramatic than
"was one of the miracles it has, hitherto been. A really
to ln£late <rt World WaritHhad w.fPjtc of ,shaij stamp in the gilt-edged
that,
the inflation
V \u
Stonier, for 17 years
Chief Staff Officer of the AmeriBankers
the
t
-pec ted
Paul
ran
•
Ex-
mained
-
Dr. Harold
colonies and other
.gUt-edged
bolstering
market
by
perience of the Socialist Governchange quota- -ment in the 'forties has shown, it
the
country, the banks are
ready for the great opportunities
indebtedness
of
only postpone ,-thc
day of reckoning, for, as the ex-
5%, the level
of
term
expedient
the.
up
deemable
for
v
Dalton's
stocks
banking system, capably
rrianaged and staffed. Fortunately
•
Even "Government should revert to Dr.
>
i t h the
a
strong
that lie ahead.
w
yield
A dy¬
namic economy like ours needs
month.
:
adjust themselves to the changed
economic conditions, and particu¬
larly to the growth of competition,'
,
.
.
Chicago Analysts
a
.
appointment over the absence of I end of World War I;. Instead, inA.^Thomas, Fr^ident
ganized in a ful'ther lowering of the bank a* flation.-* has
been going on un1935 in coorn rate -gured Pr°nnnently among /abated ever since the end of the
that spiral will continue to rise address the luncheon meeting of
era tion
with them.
The continued decline of 'war, apart from a few brief in- on an increasing scale.IA further the Investment Analysts Society
Rutgers—The the Conservative voto at by-elec- f;eryaig# Until comparatively re- fall in Government loans
might of Chicago being held today in the
iho
AR A
or-
,
effect on'Gtovlm^nt
sitvetbrtibhis
etir ement
r
"three
I
served
successively
Manager
and
years
he
ago
had
Executive
as
Executive
Vice-
Dr. Stonier
in the
was a leading figure
banking business since the
1920's.'
He
was
of
one
the
out¬
standing proponents of education
a
as
a
means
useful
more
and
of
This Announcement is under
of
as^nfJ'*1® ^a®^Ganat> s^aaid
been
sufficient
to
offset
NEW
"" ""
"
"
*
influences, had it not been
the all-important influence of
one
to Inflation Seen
relative
large
increases
ease
trade
with
union
which
after
"
joined The
Marine Trust Company of Western
i
—
j
•„
y
,
NeWyYork and will be associated
with
the municipal
tj0n j^as
securities de-
120
Broadway,
it
has
was
Gw C. Haas & Cn
Co.
been
come
to
; f
■
-V
'
(^8 Par)
i-
;v,'
,
;
"\"
mmmmmmmmmmmmmmmmrnrnm
•
•
-
r
•
'
y
>
;•
'
v
•
f
1
;
-
'
*
*
'
' *
i
"*
^;
Price
•
stay has induced
large and increasing number of
investors to change from Govern-
nifei?^ i°ans to equities.
an-,
-
Common Stock
absence of any
#25
per
Share
•'
.
ous
other trust
<
,
*
Such in-
tonnerly
;
;
:
»a
partment of; its New York office,
nounced. s: He
the
Company
:
corresponding increase in the output has given rise to fears that,
so -far -from
stopping, inflation
^ends^ to become accelerated. The
realization of the fact that infla-
j
.
in
Electric and Power
•'
an-
securing wages
are
entirely un-
that
warranted
Marine Trust Go.
v
ISSUE
1,000,000 Shares
No End
The
other succeeds in
.i
circumstances to be construed as an offer to sell or as a.: solicitation
of these Securities. The offering is made only by the Prospectus,
no
any
inflation fears.
banking structure.
tvt
offer to buy
these
far-sighted
•R. K. Hartshorne has
an
building
Hartshorne Joins
Ballroom of the Midland Hotel.
I'"..I.-
f
'
.: :
have
for
of bankers
iI:<•>;>> ?>■
reductions and the resumption of
President of the ARA
to have|make the|Goveminent and the
1
cently this dW not
securities. Oil, the otheirihand,^be
; prospects or an,improvement f of
^ international political situation, the recent tax concessions
and
prospects of further tax
;
;1
IS
funds, Lloyds
un-
'
.
>
*'
s
r,: c
Copies of the Prospectus
nouncement
i" d, dealer 's
or
Incomplete?
be obtained .in any State- in which this anfrom'.only such of' the -undersigned} or other
may latefully offer these securities* in such State.
may
is ' circulated
brokers
as
-
-
Are Your Records
Merrill
Laurence M. Marks 8C Co.
"FOR SALE
^
Lynch, Pierce, Fenner & Beane
A. C. Allyn
and Company American Securities Corporation
Incorporated
Bear, Stearns 8C Co.
.
Equitable Securities Corporation
„
Goodbody & Co.
A Number of Beautiful
Annual
Bound
Various Dates From 10
to
*
u
REctor
'
'
2-9570
c/o
Edwin
Reynolds & Co., Inc.
50 Years
Available in New York
City—Write
Phone
Hallgarten & Co.
Sets of "CHRONICLES" of
L.
L. F. Rothschild 8C Co.
7
Dick 8C Merle-Smith
E. F. Hutton 8C
Beck
Chronicle, 25 Park PI. N. Y.
Carl M. Loeb, Rheades & Co.
Bache 8C Co.
or
,
T. unwarranted
^I?ffoi2s to" cbe^ inflation. Thero^ mum,
■
•
supreme
ment ;to incur unpopularity by, regard for the
overriding public
adopting sufficiently drastic dis-r interest."''' •
Ifinflationary measures. .It is true,
/
^
dcrwriters,- - and•. e v en; Church»inflation endangered from time tov^i-*
r
I
^ r
funds. In.face of such a trend it time the gold reserve, but this WLVOflS
UO.
will become increasingly difficult effort;-rni»lH Hp
thrmi^h,- "f
-T*
-
-
.
form" of
deterioration of
a
,
really sharp slump
a
'"-'V
m the prices
,
I;v
I
and
.ficulties in financing its borrow-; tain its present
,;ing and its conversion operationstiality in faceat reasonable rates
\
: - ? •
;wages demands.
in govern-^ ment - bonds will mobilize the public against ,-wage-in nation.
ex-
/
jM-
really effective disinflationary policy/' Thr
.
.^The sharpr-decline
While-the-long-range outlook^fBriJtls^1Government securities
panded volume of loans.
•
-
»«ation fca.,
s
Moiwmic^e^lteir beiiieyes
the
bdrdeh bf-phbWd debt
if
f.r. </ Such optimistic assumption has
expedient of bolstering up the gilt- f; ;; been largely responsible for the
-edged market, it would he best forihe government "to face thei "
inadequacy of the Government's;,
reverting to Dr. Dalton
of the cost of in-
aware
were to continue for the erriment's credit,- Once> this- has
rest of the twentieth century,-the:: come to be
realized the GovernTreasury would encounter no dif- ment is no longer likelv to main-
'
:■».
eouclu^, now
'J? f*",??.?
f
the banks
on
.
,
.
Sreng"^ If "fVe |',romp',Dr:
ened
,
By PAUL EINZIG
-
v
«
.
^
... ^ r
J
' ;
The depressed market for British fixed interest-bearing securities and the marked trend from
government loans to equities
,
country
Ration *> in
ex-
rwVilteht. As-a result^ it hhs^cohie
be widely assumedvthat even
atawmtla^s'I''i inflation
t-
J
,
taken
and social changes that have taken
and
•
.
have
^securities to any' noteworthy
;
■
Company
R. W. Pressprich 8C Co.
Shields 8C Company
Francis I. duPont & Co.
A. M. Kidder 8C Co., Inc.
Wertheim & Co.
H. Hentz & Co.
Salomon Bros. & Hutzler
Thursday, June 6, 1957
The Commercial and Financial Chronicle...
14
(2626)
What about the third stream,
Our Economy: Where We've Been,
Where We Are, Where We're Going
ELLIOTT*
By OSBORN
Editor,
Business
Senior
future
our
i
of
I
need
Claims desire is replacing
demand, and that this presents
to industry.
While
economic
the
growth
fantastic, the first of my fearless
ment,
is
predictions
has
it
that
been
nothing
com-
pared to what
in store for
is
the
future.
I
Now,
know
that
some
have
thought
times
at
that
all
the
for
bounty of this
amazing coun¬
try, there have
been
slow
Have
ing,
by.
fear:
no
In
the years
that are com¬
there will be plenty for all
of you.
What
has
happened to date?
to position us, let me give
a few quite recent figures—
Just
you
statistics
alone.
the
the
of
In; 1933
last
at
Depression,
25
the
the
years
bottom
total
of
output
of
goods and services in the U. S.
was
$56 billion; in 1944, at the
peak of World War II, it stood at
$211.4 billion.
What is it now?
In
the
it
a
first
was
in
in
years?
My
figures I
The
of constant
terms
And here's
able
hear
I
has
hap¬
the value of the
those
simple:
what
year,
There's
Do
you, say?
abyout
to
this
to $427 billion!
up
>catch,t
mumbles
pened
of
quarter
dollar
is
answer
quote
1956
are
dollars.
an all-time high.
What,
might ask, goes on here, any¬
way?
Maybe this little rundown will
help us find our bearings before
climbing aboard the time machine
you
again and racing toward the 21st
century.
week
about
47
incredible
shrinking
was
hours
to
40
from
and
less.
there is a lot of talk
and worry about something called
automation, and something called
the four-day week.
What's new
automation?
consider
it
I
happen
nothing
a
spending
to
word,
that
a new
way
attempts to describe in
years!
his
mined
buy
to
the
shorten
as
work
work
makes
man
week?
week
on
news
a
istic
four-day
to
who works
to
am
realize
week
come
my
real¬
that
will
me!
question in
no
one
the
probably
But
out and borrow and
go
it was consumer spend¬
ing that pushed us to new records.
Last
the consumer took a
at least in the fields
This
year
little
rest,
automobiles and housing.
of
time, it
industry's spending—
was
amazing 25%—that came
and did the trick—and
no one is more aware of this phe¬
nomenon than
those of you who
up
an
through
South.
the
from
come
It
was
a
remarkable
thing, and a sign of
economy's health, that busi¬
in
1956
actually set new
the
ness
highs
at
time when
a
autos
and
two bellwether indus¬
—
in
were
—
something
of
a
slump.
Well, what of this year? Here's
situation:
the
Consumers
still
are
spending at record rates, but the
rate
slower.
is
increase
of
spending
for
different
things, such as services ■— that
means everything from dog beauty
parlors to the diaper service—and
soft goods—and that means every¬
shoes
from
to
bottle
a
good Kentucky bourbon or
of
there
is
mind that the
billion
$435
year
a
bot¬
will
As
for
industry,
spending right
levels
ord
—
its
second
here
but
rate of rise is slower.
some
I'm
terly
sure
survey
week"
have
that
launched
operation
with
the
the
Incidentally,
we
last
of
rec¬
again
seen
the quar¬
in
co¬
National
isn't
This
it's
optimism;
think
Just
this
to
pie-in-the-sky
sheer
matter
a
within
economy
have
a
shorter week
nation?
been
Disaster?
saying
so
mean
People
In¬
for
year.
Here's what I think it will mean:
The
new-found spare time will
give rise to the greatest
boom
this
—and
the
country has
this
will
nation's
come
cultural
ever
on
greatest
seen
top
of
material
boom.
Our
U.
vast
so
*
An
12th
S.
and
address
Annual
economy
is
already
complex that I think
by Mr. Elliott before the
Convention
of
the
off
detect the
in
here's
the first
have
survey,
to
date
but
that within this
industry
is
the
we
show
an
So there you have the trend of
two of the three mainstreams of
spending
industry.
by
consumers
and
Both continue high.
among
economic
.
Nuclear Energy
have
control
a
available natural power resources.
room,
This
private electronic brain.
give
it
instructions
the
You'll
what
is
there
meant,
when
bounty
will
all
for
An
I
the
that
stated
share.
to
I
be
-
of Trillions
Economy
awakened, when break¬
heat
Supplanting Need
Desire
.
,
air conditioning should go
or
50
Right now, about onefamilies, in a popula¬
tion of 170 million, have incomes
off; even, perhaps, when the
or
on
the
is
simple fact that more and
should
be
a
flivver
a
of
the
incredible
33
skies
flying
hours, to
a
changed! Let
experi¬
personal
from
example
give you an
me
dollars
will
represent
the
economy
will
be
measured
in
trillions, not bil¬
lions.
for
all
that sounds pretty
it should be—an im¬
mensely
bigger
pie
for
every
Now,
bumpy
Now,
innocents around New
we
have
York
in
stoves
our
houses.
lin
will be further demolished within
the
just
two
next
I
years.
I have one,
The
You
boil
water
on
this
talent.
culinary
around to my
house
But
come
day and
some
listen to the refrain: THIS STOVE
MUST
wife
GO.
stove
Why?
Because
it's old-fashioned.
says
will, of
my
The
go.
course,
is
replacing need
terion of buying.
ing for
many
a
as
American
amazing
nation's
business
high pros¬
that,
use
itself.
with
98%
Isn't
of
in
Automobile
the
new
it
the
electrically wired homes
history!
How
tle
course.
radios
exactly
us
a
In
a
Even
if the jet
little
at
more
three
couple of
flights
.
that
in
this
field
own
century
of
Just think:
Only
than
hundred
my
To
take
another
example, the
refrigerator
makers
have
done
by about the same thing. The refrig¬
•
erator
market
is
currently
more
our
see
big news was spread through
New York and other cities by the
church
of
the
cannot
turn
and
on
bell
church
even
my
bells!
radio
it.
or
rings
omy
Yet
I
.
.
.
Along with man's advance with
machines, all these things will
save
in
a
that
to be wolves to
cease
what
improperly call human¬
should happen, the year
Lord
2007
would
indeed
possible worlds
true.
Joins J. Earle May
PALO
television set
switch at her end!).
were
improvement
(Special to The Financial Chronicle)
can
Lowe is
time—and how will tne time
ALTO,
now
Calif. —John H.
with J. Earle May &
Co., 601 Bryant Street.
Imagine
a
science
the best of all
come
get the news almost instantly.
flick
of
Tociay.
from where I live, I
hear
now
If that
of
years
ago,
tolling
.
.
moral
would
they
ity-"
communications.
a
.
ings would at length learn
Few fields have made more ad¬
vances
.
another, and that human be¬
one
three blocks
were
way
men
Communications
in
when
But
a
fair
may
first, I'll be
aboard every time I get a chance.
Advance
matter.
diminish its labor and double
its produce; all diseases may be
by
sure
means
prevented
or
cured, not excepting even that of
age, and our lives lengthened at
pleasure.
."
Then Franklin added this:
"O,
such jets will be girdling
globe—and here's another ex¬
ample of how desire can replace
a
over
be carried in
the power, of
Agriculture
may
years
may
the
need.
thousand
men
you
minutes from Seat¬
Baltimore.
to
as
Benjamin Frank¬
"The rapid
ago.
height to which
years,
year
it-happen?
were
part of
radios
took
year
did
explanation, of
and
improved
it
and
to
pre¬
gretting that I was born, too soon.
It
is
impossible to imagine the
cri¬
And it's happen¬
reasons:
know,
hour,
an
hours and 48
cost
This is what I mean when I say
desire
miles
692
a
true science now makes,"
said, "occasions my re¬
Franklin
burn
even
can
village
little like
a
years
progress
was
and it works just fine.
jets
gas
177
and
town
It sounds
diction made by
I got a first¬
how distances
of
city,
state,
agt>,
glimpse
and
rosy,
cut.
A few weeks
or so,
income in constant, pres¬
an
poverty;
month.
hand
ence.
population of 250 million
ent-day
on, so off he went to the furniture landing in Paris. That event took
just
30
years
ago
this
store to buy a chair.
But how it place
has
$5,000
and
$10,000 a
Fifty years from'now, with
such
most obliterated in the short half-
desire is replacing need as century since the first cars chugged
down the streets,
and the even
a reason for buying things. It used
to be that a person needed some¬ shorter time since one man kept
thing to cook on, so he bought a
He needed something to sit
our
between
year.
more,
stove.
years.
third of
iced, or when
Something very basi£/has hap¬
the bet should be placed on the
pened in the U. S. economy over
great-greatrgreat grandson of last
tne past 10 or 15 years, go basic
week's Derby winner.
that it's easy to forget, easy to
Distances have already been al¬
take for granted. What I refer to
juleps
the advances that will
encouraging trend, that instead of another part; radios that start the take place in the next 50 years.
continuing to decline, appropria¬ coffee pot in .the morning, tiny You will see the person you talk
tions have once more taken a turn transistor radios that slip in your to over the telephone—in techni¬
for the better.
color (that is, if she chooses to
pocket.
ones
be
powerful
an
our
as
impending levelling already owning radios, last
was the biggest radio selling
spending.
And
little advance tip: All the
aren't yet tallied in our
quarterly
will
with
want to be
years,
industry's
a
returns
latest
we were
Associa¬
tion of State
Planning and Development
Agencies, Louisville, Ky., May 8, 1957.
capital appropriations in
given quarter. I'm proud to
that last fall
with
will
these
babies grow up,
largest perity, the expanded
any
to
This
their
say
I
all
—
most
World War II's
At the beginning, I cited a few
begin to get mar¬ fast, lunch and dinner should be figures to show how far we've
started, when the lawn should be
ried, buy houses, cars and TV
come.
Now here, are a few. to
sprinkled—or even cut—when the
sets; and read magazines, too!
show how far we'll go in the next
five
of
the
the
forces at v/ork.
a
I think it will.
Board.
travel
happen night before, putting a whole day's
brief program on tape: what time you
will
what
of
of logic.
of course, it to keep pro¬
ductivity rising even faster. If it
doesn't, then all bets are off; but
What will
sin¬
typewriter.
there would be
change,
confronted
you
ple title, "The Golden Sixties."
trick,
to
a
equally re¬
Now, I have left for the last the
back
aboard the time machine, markable challenge. It must con¬ biggest—and the thing that no
doubt will have the most effect
where my neck is perhaps a little stantly devise new and improved
more secure.
Barring war or some products to keep the flames of on those working in the state
desire
alive.
And
it
has every planning and development agen¬
other unforeseen calamity, I feel
that the next few years will con¬ intention of doing so.
Soon our cies. I refer, of course, to energy.
won't
pose
as
an
expert
in
tinue
at a high level, although automobiles will be powered by I
But painting with a
there may be some further slack¬ gas turbines; our color television this field.
stroke,
as
they
say
in
ening in the rate of growth. But receivers will hang like pictures broad
Madison Avenue, the advent of
then, hold onto your hats! I'll let on the wall; and the walls of our
themselves
will
glow, nuclear energy will mean one
you
in on another little secret houses
right now, that one of the articles bright or dim, and in whatever thing above all: No longer will
color that suits our mood at the industry be directed to its new
we have scheduled
on our future
list at "Newsweek" bears the sim¬ moment. In this electronic house, locations solely on the basis of
Come
future?
the
about
What
of credit,
survey of the
1,000
manufacturing companies in the and so forth. It has also happened
U. S., to determine the exact state because of the
ingeniousness of
Conference
tele¬
my
Challenge to Industry
dustrial
a
hundreds of thousands for
i
remarkable
work week will grow shorter. The
is
monster,
do I hear you say?
We
deplore it daily, and with reason.
But
even
here
there
is
hope,
where one company will spend
promotion
your
I
But you can see
Sixties"
Golden
"The
"News¬
at
year
art
vision,
existed at all.
the first.
my
rate
is also at
now
in
and
literature,
better than
be
stove; which is about the limit of
Upturn
Outlay
hand
well
as
that
of
what
But
lucky enough to be aboard Amer¬
ica's first jet transport, the Boe¬
with a hard,
ing 707, when it flew from coast
gem-like flame. You can cook a
to coast in record time.
At one
steak in my stove as well as any
of
other. You can fry an egg on it. point, we hit a ground speed of
Miltown.
Capital
fine
has
before
never
But
are.
and
product
this
the
think
now
1957
of
half
And
they're
and
more
publication, I
enough
never
as
deter¬
will
better machines to help carry the
load.
These things don't happen
overnight, and
be
to
a car,
tle
shorter
and
everyone
seemed
and
gle production of a Sadler's Wells
rise they should,
ballet, or a Richard III, or even
if they don't, you all might
a Peter Pan.
they
predicted
we
national
gross
bit
nessmen
consumers
when
ago,
about
a
by
brother
thing
course
government,
and
spending by private industry. Two
something that has been going on
for generations.
And "what's new
Of
the
by
spending
tries
Currently,
about
huge economy of ours is
made up
largely of three main
streams
of
spending — namely
This
statistic:
Spending Streams
Three
This
housing
growth has taken place while the
work
to expecta¬
along at
equally remark¬
an
up
the economy rolls
areas
passed
Elliott
not
tions— and yet
deal
prevision; it is already hap¬
pening today.
Never before have
museums
had so many visitors,
I've been getting a little far
afield, perhaps, but how can you
neck out and say that For in that case,
talk about this colossus without
we'll stand by that estimate, which nothing for development agencies getting far afield? For in the fu¬
was
more
optimistic than most to develop, and the lot of a busi¬ ture, leisure time and all that
others at the time. It's interesting ness editor would be an unhappy goes with it—hi fi, boating
(al¬
just
to note that more and more busi¬ one, indeed, if such a profession ready a billion-dollar industry),
housebuilders talk of
in their business;
sales are
auto
world-is-going-to-hell
have
all at
I'll stick my
and
sales;
And I
of
Another example of desire
familiar
you
$412 billion at the end of 1956.
vs.
depression
a
that have been
Osborn
would
where we stand now.
textile industry complains of
The
that
don't think this takes a great
but
forecast,
the
that
going on at a given mo¬
is
what
business
to grasp
hard
sometimes
it's
during the past 50 years has been
refrigerators
Previously, I predicted
used?
gigantic cultural boom.
a
the three philosophy. And I want no part
main
streams,
extremely of it. It seems to me that anyone
high levels of spending, and show¬ who takes this view is saying that
ing no signs of going down. A few living standards should rise no
months
ago,
in
"Newsweek's" more; things are just fine the way
remarkable challenge
a
building
the rising.
about
been
budget,
there
So
the determinant
as
has
hullabaloo
a
Sixties."
and
being built.
billion will witness $435 billion
1957 GNP of $427
built-in
government spend¬
ing is showing few signs of de¬ hang on the wall, the industry
has
managed to keep
its sales
creasing. Incidentally, most of the
points out that
economy;
saturated, at least, the¬
But- by- edding colors;
juicers and ice-crackers,
*
been
in
such demand.
Almost
actually the replacing need.
Is
this
bad?
There
are
still everywhere you look, new sym¬
big rise recently has been taking
phony
orchestras
have
been
place at the state and local level, people who pull long faces and
springing up through the land.
as schools, hospitals and roads are
say that it is.
This is part of the
first quarter
GNP for
the year; and announces that business capital outlay study,
in cooperation with National Industrial Conference Board, for
latest quarterly survey shows an encouraging trend instead
of
continuing decline. Despite further slackening in the
growth rate, Mr. Elliott forecasts, on the whole, a high level
economy for the next few years, followed by "The Golden
opment of
I guess it's
chuckles?
some
be
90%
I oretically.
secret that
no
Federal
"Newsweek" Magazine
optimistically describes the devel¬
"Newsweek" business editor
hear
than
the
Do
government?
by
spending
With Leo MacLaughlin
(Special to The Financial Chronicle)
,
PASADENA, Calif.
"Whittle
is
now
—
John J.
with
connected
Securities
Company, 65 South Euclid Avenue.
Leo
G.
MacLaughiin
Volume 185
Number 5644 ...The Commercial and Financial Chronicle
(2627)
more
Keeping Stockholders Informed +
To Stop Raids and Rebellion
By A. A. IMBERMAN *
Imberman and De Forest, Chicago, Illinois
Management
is
advised
relations, and how
on
to protect
how
conduct
to
stockholder-
.
itself from stockholder's rebellion
and
outsiders' attempts to gain
control, by distinguished
mid-west public relations consultant in the course of
revealing
the ammunition often provided "for the revolutionaries."
Writ¬
ing to stockholders
means
writing at their level and keeping
fully informed, Mr. Imberman points out before going
to explain what can be done to
keep firms growing-—such
the taking on of risk,
research, and new blood and ideas.
them
on
as
of the risk.
cause
Consider
The
publicized
many
present
attempts
and
to
and
management
un-
u n sea t
ments.
in¬
long periods of
perimentation are necessary
ex¬
vested
In
pattern of steadily de¬
gains over the preceding
clining
control of companies, have caused year. The 1956
pattern from the
a new
stirring first to the last quarter was:
around direc¬ + 18%,
+13.3%,
+8.1%, —3%.
tor's
tables.
Other
man¬
agements have
been
shaken
of
their
out
lethargy
and
However, since profits after taxes
for 1956
topped 1955—$21.5 billion
against $21.1 billion—d i v i d e n d
payments likewise topped 1955 by
a
ing preparing
themselves for
small sum—$10.5 billion against
$10.4 billion in 1955.
consider¬
are
One would think that this
out"—-almost
50%
"pay¬
earnings—
of
would
certainly sweeten all stock¬
such sinister
holders. True, a 50% payout is far
contingencies. below the 66% or more that used
If
they
do
what
prepare,
should they
Imberman
A.
(Jq9
:;,S i;.
In the classic
Montgomery-Ward
to
be
the
considered
war.
average
normal
before
Still, it is better than the
of 42% for the first six
postwar years, and not far below
the 53% payout in 1952 and the
quired
in
Hence
the
the
state
court
constitution.
struck
down
a
protective device which has stood
for about 85 years, and is used to¬
day by such managements as Ar¬
mour & Co.,
Chicago Gt. Western
Ry., Deere & Co., Diamond T. Mo¬
tor
Car
Co., W. F. Hall Printing
Co., Sunbeam Corp., Swift & Co.,
U. S. Gypsum Co., etc.1
There is
the
no
obvious
has tended
point in belaboring
fact
to
that
ward
this
off
device
outsiders'
attempts to gain control. Until the
Montgomery-Ward
case,
no
man¬
this device
agement protected by
ousted—although others have.
was
in
the
fact
that
oil, mining and utility indus¬
tries between them accounted for
about 90% of the net gain in cash
dividends. The oil industry alone
accounted
for nearly
was
—
panies.
In
1953, the number
1
(2) Individual
auitost
to the
to
22; in 1954, there were 27 com¬
panies so involved, in 1955 there
were
30.
28,
and in
1956
there
stockholders
for
ings showing,
are
uninformed as
aiways
reasons
or
a
poor earn¬
modest divi¬
The
(a)
has
company
been
fighting the competition of new
developments, new products, new
technological
methods,
or
new
Under
what
circumstances
do promotion devices used by compe¬
such attacks arise? The author has titors. In time, the company will
been
intimately connected with catch up and is sweating towards
four such affairs—either as public that end.
At the moment, how¬
relations consultant to the raiding ever, the situation is not too con¬
party or the defending force. Cer¬ vincing to the typical stockholder
larger.
Why Outsiders Attack
tain
familiar
reveal
facts
them¬
because the management does not
selves in these situations. Three of
know
these characteristic facts deal with
losing face. In the meantime, spe¬
cialists in indignation can have a
financial
matters, and
organization.
company
defending
(1) The
has
a
:This
poor
is
not
field
management
earnings
poor
per
in relation to
poor
with
one
record.
se,
some
but
other
libitum.
As far
as 1956 is concerned, cor¬
profits after taxes topped
and so did dividend pay-
1955,
'
address
*An
the
Foundation
search's
cago.
annual
his
for
Mr.
for
Imberman
before
Management
trustees'
meeting,
Re¬
Chi¬
.
1 When
in
by
Louis
suit
court
staggered
Wolfson
that
election
maintained
procedures
directors were
voting
of
illegal, Sewell Avery cited 142 companies
listed on the New York Stock Exchange
which
do
likewise.
The
subsequent
de¬
cision
by Circuit Judge Harry Fisher of
Chicago and later by the Illinois Supreme
Court, has now not only cast doubt on
the boards
of
Illinois
precedent
of
directors
of
a
good number
corporations, but also set legal
for similar action against im¬
companies in Pennsylvania, Ne¬
braska, Missouri, West Virginia, South
Dakota, North Dakota, Montana, Missis¬
sippi, Kentucky, South Carolina, Arizona,
and
Idaho.
gered
have
a
These
latter
states
fiscal
enacting laws permitting stag¬
terms
for
directors, while
they
their basic
policies which
of book value
growth
voting
provision
law.
modest
emphasize
against
as
cash dividends.
Cash
un¬
doubtedly is attractive—else why
should
it
influence
any
of us?
Bear in mind that 53.8%
holders
in
rations
are
older.
of stock¬
publicly-owned corpo¬
50 years of age and
Half
of these
over
are
60.
might
prudence
conservative
attempts to present them.
In terms of assets, book value,
etc., the defending company
is usually very sound.
Ordinary business risks
below
e.g.,
a
almost
conservative
are
kept
investment in
tuations.
risk.
A
risk
is
fixed
as¬
hortatory
or new
in
der
to
major personnel in
produce
cheaper,
or¬
better,
am
and
sales angles, pro¬
new
colors.
new
sales
not
bulletins
self-searching,
technological
some
new
sort
This
of
no
the
process,
This
and
can
be
referring to
of
of
products
a
with
man
a
oped
v
is
not
with
done it since 1923 with
and
are
made
the
in
goes
ana
a
of
staff.
agement aware of what it needs in
perhaps
the way of
merchandising aid, can
find the necessary ele¬
ments, provided there is an honest
effort to grapple with the realities
usually
of the situation.
The
understood.
iroin
in
such
outsiue.
me
a
ness—"This
results
of
this
western
apparel
80%—and
Two
and
adolescents.
fatties
stage
for
fruit
in
for
into
products.
Packing
sugar—
new
low-calorie
diets,
big business for
food-packers. One soft drink
now
some
on
become
manufacturer
cars
companies
using lowand set the
water—without
people
has
proper
None
of
accidental.
aggressive
shamed
cars
more
for
was
calorie dietetic foods,
sales
a
brooded
over
that
trend—and then developed sweet¬
being sold by the forward
looking companies, Incidentally,
more pigments are being sold, too.
are
ened,
sugarless ginger ale
Continued
on
which
page
33
devel-
litis advertisement is neither
companies
ine
an
offer to sell
nor a
The offering is made
solicitation of offers to buy
of these securities.
any
only by the Prospectus.
■[.-
NEW ISSUE
June 6, 1957
organ¬
fear of imaginative¬
can be
done because
194,200 Shares
always done things this
This can't be done because
be new for u^." Decen¬
way;
rivits
such
1941,
have
we
in
jeans, complete with the
one
than
producers, once in
aeveloped a whole new
market
maid.
black
of the total
In
26%
up
better
virtually by seniority alone,
haraiy ever is anyone orougnt
ization has
the
of
overall
trouble,
typical manufacturer. To¬
day, black has skidded to 7%;
blue, gray and green make up
balance
highly
some
tinkering.
spectacular
spell of
a
or
of hierarchy.
sense
Promotion
it
—
the Fruit of the
guarantee since
and
name
results.
Alert
The defending management is
almost always a tight organi¬
zation,
in
concern,
company's
situation
(4)
cash
carrying
How ' many
items have
Hopalong Cassidy, Roy Rogers,
Gene Autry helped sell? A man¬
the
to
means
action,
fairly
one
1923. Walt Disney Productions has-
serious overhaul of the manufac¬
may be beautiful, but that
anomaly only if the rest of
an
the
takes
of
Loom
can
shin-plasters,
Corrective action
ad
would
tralization is
not
characteristic
General Precision
of
comnany—either
of
kind
of
policymaking.
or
! This sort of situation
was
times
have
But
changed.
Operating
rising since war's
costs
have been
$3 Cumulative Convertible Preference Stock
Until recently, it wasn't hard
for
V
(Without Par Value and Junior
to the Preferred Stock)
top management to cope with
the
sales
expanding,
and it
was
the
to
Equipment
Corporation
fairly
harmless up until about 1951.
profit
problem—volume was
demand was strong,
to
easy
buyers
margins.
terial
so
pass
Holders of the
costs along
to
as
to
restore
generating "inventory prof¬
swell yearly earnings.. No
great genius was required in many
record
Eastern
changed
now:
no
sellers' market, no more "in¬
Copies of the Prospectus may be obtained from
writers only in Slates in
any
which such underwriters
of the several under'
are
qualified to act
as
dealers in securities and in which the Prospectus may legally be distributed.
represents
some
toil.
Imagination,
progress
bitter
man's
<
daring and resourcefulness
cardinal
items
3:30 P.M.,
agreed, subject to certain conditions,
purchase any unsubscribed shares and, both during and following the
subscription period, may offer shares of New Preference Stock as set
forth in the Prospectus.
ventory profits." The new setting
is keen
competition, with price
cutting in the news. Under these
circumstances, an atom of com¬
pany
at
to
seed.
is
June 5, 1957. Subscription .Warrants will expire
Daylight Saving Time, on June 24, 1957:
The several Underwriters have
organizations to show rising prof¬
its. Under those circumstances, a
could be grown from turnip
rose
this
or
Cumulative Convertible Preference Stock held of
on
to
more
at
nine shares of $1.60
out,
its"
subscribe
share of New Preference Stock for each six shares of Common Stock
Rising raw ma¬
sometimes
helped
prices
Company's outstanding Common Stock and $1.60
are
being offered the right
$50 per share for the above shares at the rate of one
Cumulative Convertible Preference Stock
factors
are
today,
are
but
thoritarian
the
The First Boston Corporation
such
not characteristic of
au¬
companies.
*
*
Tucker, Anthony & R. L. Day
Carl M. Loeb, Rhoades & Co.
*
Merrill Lynch, Pierce, Fenner & Bean*
Wertheim & Co.
White, Weld & Co.
Dean Witter & Co.
Some Seek Diversification
I have encountered
A. C. Allyn and
no
company
Blair & Co.
Company
Incorporated
which possesses all of these char¬
Clark, Dodge & Co.
despite the fact that
might think of some
companies which exactly fit the
reader
Hallgarten & Co.
Auchincloss, Parker & Redpath
Granbery, Marache & Co.
Companyi
(Incorporated)
F. S. Moseley & Co.
■
;
L. F. Rothschild & Co.
complete pattern. Many companies
exhibit a good number of such
characteristics,
and
hence
have
Central Republic
Incorporated
acteristics,
the
G. H. Walker & Co.
Doolittle & Co.
Green, Ellis & Anderson
Goodbody & Co.
Lester, Ryons & Co.
Riter & Co.
good reason for worry.
The
Zock, Shields & Co.
raiding parties need not be
pirates,
"financial
manipulators,"
their
toll
of
American
commerce
Bateman, Eichler & Co.
Johnson, Lane, Space and Co., Inc.
virtuosi of sharp practices. Nor
need they be highwaymen taking
or
sets
I
corn-cures
company which takes no
in time, not a going con¬
but
cern,
minimum—
new
explained,
corrected.
dictate
policy, but no¬
body understands them because
the company has made only feeble
(3)
moted
comapnies try everything
in order
(a) to hedge against a
to jog
their markets. Manufac¬
decline in one line, (b) to level
turers have
been experimenting
off some of the seasonal peaks, or
with
color
to
move
products.
(c) to hedge against cyclical fluc¬
Autos during the last three years
be cogent arguments for the
may
more
these
carry on
search for
informal
less debt. There
reserves or
be
the
over-all profit
Some research de¬
That
They prefer cash dividends, even
larger
housewares, the 1942
white, black, red
were
.hunting for
Nothing Is Beyond Remedy
an
companies
All
a
followed
in
cumulative
without
—
(b) The company has
portant
Illinois
explain
dividend record because of certain
though
E.
to
In kitchen
favorites
and green. Zealous sales managers,
projects involve great risks is in¬
dicate by the fact that only one turing or distributive process, a
new
advertising agency, a new
out of 20 research
undertakings research
department head, a new
strikes any pay dirt.
program of supervisor training, a
Research need not be as heroic
new
line of products. Nothing is
as
the aforegoing.
Many smaller beyond remedy, not even the way
day.
current
companies in the industry.
porate
how
is
of the multitudinous
(1) A poor earnings record
com¬
on
end.
dends.
were
This year the number may be
the
experiment
operations
rose
after
this
ammunition for the revolutionar¬
In
1952, rebellious stockholders
staged proxy contests in 11 com¬
before
snown.
half the net
gain. Utilities also had an unusu¬
ally high payout ratio. Many man¬
ufacturing lines did pay more
cash dividends
but only
mod¬
estly more.
Many,
particularly
those squeezed * by
tighter bank
credit, paid out less—e.g., durable
goods, industrial machinery and
metal products,
railroads, furni¬
ture and
textiles: Merchandising
paid out less. All this provides
ies.
of
ucts
"Disposall"
waste, the
Company
re¬
years
partments
is
lies
the
the
Electric
19
project
sheet
stockholders
the
of
case
mencement of its research
with the cumulative
sion
over
the
case, the Illin¬ 51% in 1953.
Why the unrest?
Supreme Court held that the
The reason for the stewing of
staggered voting statute conflicted
ois
voting provi¬
as
dollars
all
raider
be
may
often
disguises
of another company — seeking
diversification, and finding "that
such a raid is the only way it can
get what it wants. Sometimes the
for disposing of kitchen
a
seize
item
an
of
they
Quite
year, the
high-quality
line showed nearly 65% of volume
for
the development of important new raider is a key attorney with in¬ in
pastel
yellow,
pastel
blue,
dustrial
connections
which
can
products. Du Pont spent $43 mil¬
pastel green and pastel pink. This
lion over a period of 18 years in make
good use of other com¬ producer is
rapidly increasing his
+
Other times the raider share of the market.
developing the dyestuffs industry panies.
in the United States before the may be a normal, educated, wellAlert
companies
which
have
profits offset the accumulating disposed and enlightened exec¬ new
products
but
no
known'
losses. Nylon required an expend¬ utive who sees an opportunity to
brand names, hitch on to wellhis
own
iture of $27 million in a 12-year expand
company
and known names. This is
nothing new.
period before the sale of the first augment his own power.
Fruit of the Loom,- 100-year-old
What can present managements textile
pound which was made in a com¬
converter, has been licens¬
mercial unit.
do about protecting themselves? ing manufacturers to make
prod¬
Dividend payments in 1956
charted
that.
one
prosaic
so
—although
-
Millions
research.
General
publicized
A.
efficiently, or to attract new
business, is often turned down be¬
15
1
Wagenseller & Durst, Inc.
Crowell, Weedon & Co.
Walston & Co., Inc.
The Commercial and Financial Chronicle...
16
(2628)
-
•
THE MARKET... AND YOU
overhead
formidable
The
twice
:
STREETE
By WALLACE
yield, Illinois Centrai,with-a
tetter-than-7% yield and a
d i v i d e n d covered at least"'
over
s
-.1
;• y.c*.
by earnings for the
past half dozen years, are ex-
| amples of quality issues with,
far above average yields; An
IBM Drops Below $300
early freight rate increase
International Business Ma- and favorable comparisons 1
By GERALD D. McKEEVER
A
;
.
Thursday, June 6, 1957
Survey of First Quarter Railroad Results
Jii the light of the generally depressed level* at which railroad
.
f
kept the stock mar- •
ket generally stalled this chines both showed the ef- this summer with last year
week with the inevitable fects of its large financing when loadings were hurt by
handful of wide movers fur- and the trim recently when the steel strike could be the
equities are selling it is interesting to note that a substantial
proportion of the roads have not. been doing badly at all this year.
nishing the features in other- the stock went ex-rights with
a
rather large price tag of
above $8 for the rights. It
The Du Pont Ruling >
brought the price below the
:: Du
Pont was a bit erratic
$300 level which is novel terwhen the Supreme Court
ritory for \IBM. This issue,
labeled its 23% interest in
well larded through the years
Union Oil of California was
group, 20 roads.achieved an improvement in earnings as shown in
the •extreme right-hand column headed "Earned per, Common
Share" for the two respective periods. The other 23 roads covered
in this survey did not do as well.
The series of operating ratios
the more popular
detailed in each of the first four columns shed considerable light
resistance
sparks to set off the group.
wise drab sessions.
General Motors
violation.
of
Although
Pont's
du
anti-trust
an
good bit
a
among
of debentures
*
-
•
,
by Gulf
held
Oil starts to become convert¬
triple-par line since 1954. The
times has been the prospect
*
items in the favored oil group,
been available below the
at
attraction
*
.
Despite its new high postings,
it has yet to attain the 70
payments, hasn't level where the large bundle
stock
with
~
of
rights are about to run out so
spinoff of this 63,000,000- the
weight of the financing
share bundle, the stock re¬
ought to be lifted shortly.
acted after the initial strength
Aircrafts Well Deflated
and was among the more de-
ible. The company
a
is
leading
a
factor in efforts to unlock the
fabulous
reserves
of oil held
in shale fields and
production
from shale is expected to be
Aircrafts have been well
started this year by a new
deflated recently, finding oc¬
plant in Colorado.
casional support for a change
.
termined casualties
occa¬
sionally.
of
Some
was
the
traced to
court
«
#
if.
early elation
belief that
a
would avoid any
tax
a
ordered divestment
-
on
capital gains
100-fold
the
in value since it
increase
this
armament
ers.
quick to point
out that this was
had
have all combined to chill
thusiasm
for the
en¬
plane mak¬
issues in the
The
group
than
anything else. The
pany was recently renamed
National Distillers & Chemi¬
were
shares for each of the du Pont
shares
But
outstanding.
business
airframe
ft
ft
ft
ness. Company estimates are
big outfits in the that
by next year' some 60%
the
have
not
of
profit should come from its
overlooked the rocket and "chemical" and metal lines,
missile fields and Martin Co., including a zirconium plant
General Motors, but the re- for one, is an important factor about to be
completed and a
treat was
general and not .in missile work. Northrop titanium pjantakwrnderw^*
Motors gave ground slowly
but rather steadily, including
nqtweably.^nn^ed.with the^Aj^craft,.^hich than
found_.profi,ts
slashed
half
du Pont
A
"
more
m
ruling. The fact that
metal end finally reached the
there has been no spring up¬ when one major contract ran level where
it
provided a
turn in new car demand, of¬ out, made a rather distinct
third of net and definitely
ficially admitted by the auto turn in stepping up its work made the company a chemical
makers, and that sales were on its long-range missile factor. The stock, however,
slowing down earlier in which is operational to where has yet to carve out a range
year than usual, the Air Force is organizing a of as much as five points alwas the
squadron based on this single th
depressing factor.
h it is well a'bove the
°
missile, the Snark.
lows of the last five years but
General Motors Chief Victim
still struggling to reach last
Most of this year's decline
Boeing, also among the eas¬
in auto sales has been at the ier items despite official as¬ year's peak.
even
the
model
,
YYncci
of
expense
That
the
an
General
Motors.
extensive revision of
GM
,
surances
planes
.....
,
thn
o
Wnni»lr
that
are
'
conventional
is
in
will be the 50th anniversary
of the colossus with a
good
showing
more or
made GM
ory,
for
issue
There
next
wasn
less manda-
preferred
a
much
t
results,
year s
rush
to
load up yet, however because
the dour figures of this year
are
still to
arrive
and there
is
Eastern
High
on
Corp.
Papers have been well defia^d from the lofty
leveVof
ar-isteadil|
mis-
ition
is
In
st
fact
™
some
.
.
*
While oils
the favorites
*
Rails Set to Move?
generally
more
were
times than
Rails
had
their
ithe
gen-
not, new financing : is not erous yields available,
but
greeted very enthusiastically: they were a tight-knit group
by the market a nd Kerr* and so far the expected upMcGee Oil
notably d>asy surge by the carrier shares, to
%yhen it moved: into registra- i bolster the industrial assault
tion
with
bentures
was
$20 million in deand
of additional
225,000 shares
common
stock.
on
.
a
new.,
record
peak
among: thef.missing
Rock. Island
with
be well covered this year
company
habit
of
and
con-
followers, j serving funds and larding the
largely because of the
a
general
so
In the
to be epidemic, and is summed
as
<
*
level sufficient to absorb higher costs.
This situation is made clear in the first three columns which,
left to right,
from
Pre-Tax Operating Margins;
(1)
express
(2)
Total
Operating Expenses; and (3) Transportation Ratios in terms
percentages of gross revenues in each case. The Pre-Tax Operat¬
ing Margin reflects the proportion of gross revenues that is carried
of
after deduction
through
•
of all- expenses
taxes and is thus an accurate measure
except Federal income
since it is riojt subject to the
wide vagaries in net
reason
income that result from tax credits for one
Operating Expense Ratio in the second
large extent the inverse of the Pre-Tax Margin in
another.
or
column is to
a
The
that it relates direct operating expenses to gross revenues.
not
do
It does
completely complement the Pre-Tax Margin in that the two
add
not
100% because the latter reflects the deduction
hire cost and other items not included
to
up
operating expenses.
Transportation Ratio is always to be considered in an
of this kind since it can not be manipulated as a
The
is
temporary expedient to alleviate a narrowing of;the profit margin
and it is thus a true reflection of cost conditions at any time. The
•
Maintenance Ratio, on the other
hand, can be so dealt with but it
interesting to note that there is little evidence in the present
study that this expedient has been resorted to. In the case of the
4,Coast Line" the rise in the Transportation Ratio is approximately
\
matched by a decline in the Maintenance Ratio but, because of
the relatively high level at which maintenance has been charged
by this road for a long time, some easing could conceivably be^rt
order.
In the case of the North Western the reduction in the
maintenance ratio was
accompanied by
a
much sharper drop in
Transportation Ratio and both are believed to be due to more
operation. A simultaneous decline in both ratios was
also shown by the New Haven. Some question may be raised, on
the other hand, in the case of the Lackawanna.
the
efficient
consequently is that, for "the most part, the
has been the case in the first
conclusion
Our
decline in net incomes, where such
quarter of this year, has not been cushioned to any
extent at the
undue-padding ofigains ?in net income* where gains have
achieved.
>
.
*
'
STATISTICS
OPERATING
1957
Chic.
1957
1956
34.7
34.2
35.0
34.5
SO.47
$0.52
1.21
77.9
12.G
79.2
78.6
38.0
35.8
33.1
35.6
6.8
80.6
84.0
42.2
42.0
30.6
70.7
64.9
27.4
24.9
36.6
35.0
Rock
5.4
2.0
80.4
82.6
46.5
47.3
26.0
27.7
§0.54
2G.6
71.4
68.8
34.4
34.1
29.9
28.2
1.75
12.8
76.3
76.3
38.2
39.5
27.5
26.0
1.04
,18.G
20.6
67.7
67.9
31.3
30.7
29.5
30.6
3:50
•
1.66
11.64.
1.88
1.16
1.61
1.6
85.7
87.9
41.4
42.7
35.5
36.6
§0.24
§1.06
§12.4
86 2
99.0
46.6
52.0
31.4
33.7
§2.24
§11.20
38.9
0.8.9
4.1
l.G
.
"
1.07
Pac—_
8.8
10.G
78.7
77.8
40.0
29.5
29.8
Hudson_____
2G.0
26.8
68.7
67.4
33.5
34.3
27.3
25.7
1.20
1.25
4.0
6.2
84.3
82.4
51.3
49.6
24.9
25.3
0.18
0.68
27.5
29.6
62.8
63.4
30.2
30.5
25.0
24.6
1.49
1.19
&
West..
<fc
West..
G.
R.
&
1.37.
2.38
10.7
Ill
Is.
&
Del., Lack.
-
23.7
Ohio
&
1.51
1.88
34.3
28.7
Northwest
Delaware
1956
1G.G
Chi., Milw., St. P. & Pac.
&
1957
21.0
Chicago Great West
Chic.
1956
10.4
East.
share
com,
1957
76.1
Maine
&
&
Ratios *-
Ritios*
1956
Ohio_
&
Chesapeake
Chi.
Earned per
Mainten.
Transport
;
1957
11.6
L._
&
Boston
1951 AND 1956
Ratios*
Aroostook
Baltimore
Bangor
195G
been r;
<
EARNINGS
SHARE
14.4
_____
C.
PER
Oner. Exp.
Pre-tax
Atlantic
AND
FIRST QUARTERS
-
Margins*
Atchison
;
of maintenance and; that, conversely, there has been no Z\
expense
;cash payment with a stock
dividend will probably be followed again % this year. It
• looms.'high; on
the yield
jladder.
% - .. ..
[The
'
views
expressed
in
7.7
9.7
79.1
77.6
45.1
44.9
25.6
24.7
0.51
0.67
-
5.7
3.3
83.8
85.9
38.3
38.9
37.7
39.6
0.57:
0.34
^
7.0
12.4
79.7
74.8
33.9
32.2
26.0
33.0
0.44
0.93
75.9
37.3
26.8
34.1
32.2
1.28
'
aj^,a,bl° s P e c.u 1.a 41 ° n Slle b"slness c°n V,1 b ?t?d equity per share is well above
ground that redesigning the around an eigh h of total sales ; $10. linings projections inT
additional ^'ght.entail and undoubtedly will increase ;dicate that'the dividend will
financing.
this year.
*
is
reason
Gicat
Yield Ladder
own
senal. Even last year the
the
in the inability of these roads to hold traffic and revenues at a
'
'
up
Denver
missile, the Bomarc. recent
including EastIn addition its civilian busi- ern CoJ
which . ha* been
"ess runs close to a fourth of available at around 10
points
ota backlog and should be a under last year's peak which
big contributor to profits in is a considerabie siash in an
the next few years. Douglas
issue in the $20.$30 bracket
also is deep in missile work
Earnings have been rising
with several models in its
and the f i n a n c i a 1
its
for improvement in earnings or otherwise.
reasons
case
Erie RR.
not to be scrapped
the in wholesale lots for the foreworks, and the fact that 1958 seeable future has developed
styling
latter
is
com¬
prominent not only in cal to stress the changing na¬
interpretation. The GM bun- posting new lows but doing so ture of this second largest
ble is
about equal
to 1.4 repeatedly.
/
company in the liquor busi¬
an erroneous
the
on
their
troubles, except
Washington and the National Distillers which has
stress on the rocket lads been an item more of neglect
new
thorities
have
'
examination
occasional
economy
*
cover-
of local taxes, net equipment
in
waves
was
talk,
Chemicals
the following tabulation of selected data
ing operations of 43 Class I roads for the first quarter of the
current year in comparison with the first 1956 quarter.. Of this
in direct
"Chemical" Attraction
approaching, if not actually
at, a bargain table level. Dis-
acquired
in
World
War
I days,' for
around $25 millions. Tax au¬
were
National Distillers
week, and to many are
This is indicated by
this
ar^c^ do not necessarily at any
facets.
Northern
Mobile &
Gull',
- -
1.68
Illinois
Cent.
9.9
13.5
78.6
Kansas
City Southern t
Valley
;
31.1
29.3
55.0
57.0
20.1
29 8
20.1
21.1
1.45
1.38
0.4
6.5
87.3
83.2
48.1
46.6
32.1
29.6
§0.42
0.33
Nashv.__
1G.4
20.5
83.1
78.0
37.7
37.2
38.8
34.4
2.18
2.79
13.2
10.8
77.9
81.8
35.5
36.1
29.5
31.3
4.7
6.6
85.0
84.4
39.6
40.2
36.3
37.3
0.34
0.55
1.3
8.0
83.7
78.4
39.6
40.1
34.7
28.2
§1.89
§0.66
13.1
14.3
77.0
76.1
37.1
37.2
33.0
32.4
J2.09
i'2-00
5.8
7.3
82.7
80.3
47.9
46.7
27.2
19.6
22.0
70 1
68.5
37.2
36.2
26.9
26.7
0.93
1.03
45.9
48.3
27.1
31.2
§0.67
§3.89
35.0
35.5
0.44
0.34
Lehigh
Lousville
&
Minneapolis & St. L
Minn.
P.
St.
& SS.ni..
Missouri-Kans.-Tex.
—
Missouri-Pac.
New
N.
N.
York Central
Chicago.
Y.(
&
St.
L.
1.6
Norfolk
79.3
31.7
31.6
Pittsburgh & W.
Line
Air
Southern
Pacific
,
.
72.2
30.3
31.0
35.4
35.7
1.57
1.44
83.8
84.9
42.3
42.8
32.1
33.6
0.73
0.54
84.3
83.3
45.6
45.7
31.6
30.7
0.41
0.52.
20.9
71.6
75.2
25.0
27.6
31.0
31.5
1.04
0.72
15.2
77.0
75.7
40.6
39.8
30 8
30.1 :
1.61
1.38
13.0
80 6
78.2
39.6
37.4
30.5
31.1
0.27
067.
18.8
Francisco
Louis-San
Seaboard
71.4
5.8
6.0
9.5
Va._
Co.
25.3
5.0
25.4
_—
RR.
Pennsylvania
St.
79.2
1.32
0.88
26.3
13.5
Pacific
Reading
81.3
9.9
0.47
0.54
8.2
Western
&
Northern
§6.2
2G.4
.
89.1
12.2
Y„ N. H. & H
Southern
Norfolk
20.2
72.7
71.3
33.5
32.3
31.9
32.2
9.3
9.2
80.0
80.0
39.0
39.1
33.5
30.5
1.09
1.20
-33.3
T1.40
T1.50
30.0
1.18
-
1.32
22.7
25.0
68.8
66.8
31.0
30.4
Pacific
,13.2
13.4
76.4
77.6
34.7
35.6
33.3
33.8
0.74
0.67
Virginian Ry.
55.0
51.0
43.0
47.0
17.9
20.0
.22.3
23.5
3.30
'2.29
31.1
25.4
68.3
72.6
30.2
32.5
29.4
31.9
3.21
2.08
15.5
12.2
76.6
70.8
34.5
35.1
30.2
33.2
1.38
1.16
6.7
8.7
80.1
77.4
40
at
o.
2** 5
?«.4
''0.68
1.23
11.9
12.1
78.5
78.1
39.2
31.6
31.5
Southern
Union
Western
Western
Ry.;
Md.
_—
.
.—______—-
Pac.
Wisconsin Cent.
Class
I
:—__
Aggreg
•Per cent of gross.
§ Deficit.
tkansas City So. only,
:LOS ANGELES,
staff
39.3
ton class A stock.
fNot consolidated.'
Calif.—Walter
ha? been added to the
of Hill
Joins Samuel Franklin
•>
(Special to The Financial Chronicle)
C. Ciejka
8
•
•
Hill Richards Adds
;
South
onM
Ohio
Richards & Co.,. 621
Spring Street,-members of
the Pacific Coast Stock Exchange.
..
fSpecial to The Financial Chronicle)
:
.
t
ANGELES,* Calif.—Alton
V. Maxwell has become connected
LOS
with Samuel B. Franklin &
pany,,,
215
West
Mr. Maxwell was
Kostman, Inc.
Com-i;
Seventh* Street;
previbusly with
^
Vo]ume
Number 5644
185
The
...
Commercial and
Financial Chronicle
(2629)
X
Continued
from
there may be some
intangible ones.
The power is a great one and the
4
page
4:
Our New Kind of Inflation
labor
leacters
their
to be its almost
complete insensitivity to economic
hardship
forces
on
in
appears
school.
boom
learned about
we
as
In
war
or
them
in
peace,
recession, under tighten¬
ing X money
or
easing
money,
whether unemployment be 3% as
or
recently or 17% as in 1939—the
inflation inexorably marches
wage
onward and upward. No economic
event has halted it. If, for exam¬
chart showing,
Steel's
hourly employment costs rising
ever upward in compound interest
fashion, he would be hard put to
ple,
looks at
one
a
since the late 1930's, U. S.
tell
it
from
World
when
War
entered
we
that
when
II,
war
ended, when we fought in Korea,
when we stopped fighting, when
business
not
so
ply
was,;
good, when it was
was
good, when the
money sup¬
agreement,
to
impose
knows
one
with
every
to
be solved.
problem that
solved
stood
and
it
know of
no
be
can
until
I
satisfactorily
clearly under¬
is
stated,
there
and
is
up.-
It is
in the
Economic
Framework
All this
we
to indicate that
seems
dealing with
are
ordinary
no
economic phenomenon to be ex¬
plained in conventional economic
concepts. We have something here
that
has
its
origin outside those
usual bounds.
consider
taken
the
place
work
We have indeed to
changes that have
in the very frame¬
,
gtself of morals, law and
philosophy within which we
social
in this land conduct
activity.
have
been
such
frame¬
changes and to their brief
consideration
time to
time
tory of
I
turn.
now
From
a
that I
one
unique inflation.
It is this: It will
almost
futile to try
inflation exclu¬
surely
of
people
our
due
have
> course
those
been
crystallized
amendments,
Constitutional
judicial
new
interpretations or
fundamentally altering
basic laws
the economic environment within
which people deal with each.other
and earn their livings.
For ex¬
ample, the creatiorj of the Federal
Reserve System was the most re¬
of
ments
numerous
in
search
great
of
the
1930's
tion
because that
with
which
primarily dealing in the
we
wage
And
search for
a
galvanized.
cherished
a
as
one
way
Modification
ideas
greater
our
year
came
out
of
to
was
long
be
ac¬
embodied
in
social, welfare and other legisla¬
tion aimed at altering the relative
positions of the many economic
history, were no conducted.
Except under stress of
they were in 1950. emergency and social
urgency,
than
compen¬ changes in that
framework evolve
of employes has increased
slowly. What else should one ex¬
by over $80 billion, or more than
pect—or even want—with respect
50%, in this same period. Thus the to the
sation
shows
record
there
has
shrinkage rather than
sion
of
corporate
Although
effects of
we
can
we
any
been
an
profit margins.
intangible restraints,
point to the fact that
em¬
With
an
increase in national pro¬
ductivity averaging
somewhere
the
of
specific
modifica¬
the
Wagner Labor
and
adoption
which
Act
labor
monopolies which since have be¬
protected
I have indicated the
some
framework,
growth.
Labor union membership
less
was
than
3
million
in
2
and
5%
3%
per
annum,
temporarily obscure
defer that result.
fact
since
the
rise
1940
in
has
As
matter
a
wholesale
actually
than
double
p'oved
in
about
the
farm
gainfullv
those
of
This
em-
occupations
one-third
the
most
objectively
the English
most
as
would have acted
we
honest
cess
in
situation
a
to
was
leaders
union
We would find
the
Act.
union
a
For
51%
once
emnloyes
have
collective bar¬
as
to
the
restraint
carv
be
where
check the "demand -
relied upon for that purpose. But
there is no certainty that "cost-
push" inflation
can
measured
is
a
member of the union, with respect
to his wages, benefits, hours or
working conditions. Furthermore,
employers, if confronted by
industry-wide union, have little
many
an
choice except to go
agreement
along with
frequently
an
negotiated
by others.
Another feature of modern labor
relations is imoortant to
standing
inflation
is
of the
we
able
were
to
and
obtain
benefits
ever
help—if I could—to broaden and
deepen a bit our own inquiries
into
this
achieve
matter
moral
and
and
all,
it
is
deeply convinced that it is im¬
portant for such self-developed
am
tion that inflation could be
neatly
checked
by instituting Govern¬
achieved by all thoughtful citizens.
ment
to which I am not only willing but
wage
and
price
overlooks the fact that
controls
have
we
already tried that; and by looking
at
the
of
curve
convictions
They
old-fashioned
of
is
up
each
by
unions,
as
ail
aid
to
reaching
be
also the only attitudes
to entrust national decision
in these grave matters.
Now With Daniel Rice
(Special to The Financial Chronicle)
On the record, it just
does not work. Similarly the no¬
spirally bid
to
glad
absent.
"pirating"
attitudes
inflation
wage
an
are
and
employers
othe r's
labor
forces overlooks the fact that
em¬
CHICAGO, 111.—Donald S.White
is
now
with
Daniel
F.
Rice
and
Co., 141 West Jackson Boulevard,
members
of
the
New
York
and
Midwest Stock Exchanges. He was
formerly with Bache & Co.
of
is
neither
these securities.
an
The
offer to sell
offering
is
nor
a
made
solicitation
of offers to
buy
,
only by the Prospectus,^
,yf
680,000 Shares
for
.
•
•
•
•.
*
ATLAS CREDIT CORPORATION
B
we
Common Stock
the
em¬
(Non-Voting, Par Value $.10
per
Share)
leadership and would feel that
if the gains
secured] for our unions
not
were
those
as
we
become
gains
wpre
yreat
secured
then
vals.
to
or
greater than
by
were
new
other
not
doing
unions,
a
good
gain made by oth¬
automatically
the
starting
have
Price $2.25 Per
Share
to
point of the
next sought.
we
Unless
we
successful in obtaining satis¬
would fear dis¬
we
more
aggressive ri¬
ATLAS
CREDIT
CORPORATION
is
engaged
primarily
in
financing
the
In this framework it is most
refrain
from
engaging in this
game of
leapfrog
inflation.
It is
likewise
strikes
can
The
cide.
over.
up
modernization and improvement of homes and other buildings in the greater
Pimaueipma
area
ana
communities
the ladder of
shares represent new
in
the nearby
Delaware Valley.
Thq§£
financing by the Corporation,
difficult for indi¬
lead
to
business
sui¬
Copies of the Prospectus
may
he obtained from the undersigned
record is clear, more¬
that industry resistance, long
continued, always brings govern¬
ment intervention anH
an
unvary¬
J. A. WINSTON & CO., INC.
ing public verdict that it is better
for wage cost to go up than for
production to stav down.
11
Intangible Restraints
wage
enables
convic¬
For, after
only such self-achieved
val
While
exn^rienced. It
to strike
thereby
social
are really mean¬
ingful in attitudes and actions. I
greater
under¬
continuing
have
that the right
an
re¬
problem in America. It has rather
been my hope in these remarks to
vidual managements to resist wag°
demands successfully since
long
he
feasibly
to propose at this
time, a solution
to our grave wage-price inflation
almost
solely by the extent to which
the
not
be
strained by monetary policy alone.
No, I cannot, nor do I even wish
suc¬
gaining agent, that agent bargains
exclusively for every employe in
or
19%.
pull" type of inflation, and must be
New Issue
ac¬
wage
unit, whether
inflated
that monetary
of the problem I would
against hasty or superfi¬
cial action.
For example, the no¬
caution
announcement
any
our¬
tained in
voting
years
wage
costs
There is no doubt
exactly
difficult for any one union leader
the
op¬
erations; unemployment averaged
16%—equal to 11 million people
nowadays; yet over those, same
all
factory gains,
placement by
elected
approach
our
and
in
descriptive word in
language of the phrase "exclusive
bargaining agent" which is con¬
of
in
so
solution
union
think
Each
is
And
-
nature. If you or I had chosen
leadership
as
a
career,
I
man
would
I wish to make it clear that I
the word monopoly only be¬
let's
1940
1933.
now covered by collective bar¬
gaining agreements. This is more
ers
use
case
1936 to
below peak
convictions which
:
inflation where the basic wage cost
averaged
in: that
far
tion?
or
prices
Well,
was
re¬
are
job.
it
activity.
remember that from
business
a
business
upon
tions with respect to it.
result, although the "slip
give" elasticity of our econ¬ tion that this is
may
influence
pol¬
a
have
Since then it has expanded to in¬
clude about 18 million people who
wide.
cause
a
is the in¬
per annum
evitable
omy
origin and nature of this power.
The statistical record portrays its
industry-wide and perhaps,
eventually, will become nation¬
come
,
strictive
Such
course,
composite basic attitudes of
170 million people in their evolv¬
ing of a viable American
Civiliza¬
cannot measure the
ployment cost inflation has aver¬
aged out at something like 7 to 8%
and
Growth of Unions
wages
authorized
a
expan¬
ployes we represented. We would
find ourselves confronted with ri¬
from
activity is
was
ciety.
resulted
economic
sufficiently restric¬
a
icy would, of
alone you cannot even tell when
control was in effect and when it
and occupational groups in our so¬
tions
noted—
framework
of
selves
the
have
the
granted by law, and enjoy¬
ing public acceptance and support.
modifications
of
in
between
tually have.
One
I
as
—
evolution
cost-covering price level increase
ceptable to most people and these
were
dealing
with
inflation is the nature, the growth
How this rising power of the
exclusive bargaining agents is ad¬
ministered is a simple storv of hu¬
fell
of economic hardship followed an¬
other,
are
and the administration ot power—
nation
our
evil days.
upon
in
year
employment, bal¬ per annum, and this is what the
anced or unbalanced budgets.
They public appears willing to take
are insufficient tools of
investiga¬ without being stirred up too much.
are
achieved. We
stopped by
nonfarm occupations.
monetary system.
In
tive monetary policy.
enterprises.
them, like time bombs,
have delayed action results. That
only makes them the more serious.
of
1956, the largest physical volume within
which
subnormal
or
experi¬
satisfactory
a
aggregate corporate dollar profits
in the latest full calendar
year of
prove
to explain wage
sively in terms of the usual con¬
cepts in the economist's tool chest,
such as hard or soft money, supra-
throughout the his¬
changed.
I In
changes
have
cient idea, favored by some, is that
our new kind of inflation could be
Some
human nature. They
that the public, of which
By contrast, the annual
suggestion to make.
even dare, although
with some diffidence,
to make
to those economists
delving into
the nature and functioning of our
Republic the basic at¬
our
titudes
cent
So I have
a
is
power
work
into
economic
our
: ■
There
high-speed cost in¬
flation presents many
problems to
financial managers of
only
closely are too numerous and too long or
Time prevents a full discussion of
interlocked chains of production,' wage increases that
cause too
big them here but we did deal
with
the stoppage of production in any price increases
may provoke pub¬ a number of
them in the Annual
one of many key spots can even¬
lic indignation and
challenge to Report of United States Steel
Corp:
tually bring virtually all industrial their power.
On this
occasion, moreover, I am
production to a grinding halt.
Intangible restraints of this sort more
concerned
that adequate
I have thus briefly refreshed our:
may be at work. There is no way
analysis of the persistent inflation
memories on fundamental changes to prove it. The
only evidence I problem should
be stimulated than
in the socio-political framework can
proffer is the intense public
with how to live
within which we conduct economic relation efforts of union
happily with the 4
officials
problem. X 'X-X*Xr>X:XXX,
"■ X-. 'X
endeavor, because as a nation we' seeking to exempt wage inflation
I do not have
any handy solu¬
must either accept our- new kind, as a contributor to
price inflation, tion to the
problem. Nor do I think
of inflation as a
satisfactory way: blaming profits instead. I person-} it
likely that any good or lasting
of life or else accept it as a
prob¬ ally find this a bit curious, because
solution will soon be
lem
ployers have been vigorously re¬
tne
continuing pusn on
wages, even at the cost of long
strikes.
Perhaps another insuffi¬
sisting
Continuous
our
saying that once a problem
stated, it is half solved.
Change
as
pnuivalent of 5.2% per
compounded.
Prospects
to preserve
which is
—
union membership itself is a
large
part, does not like price inflation.
They may feel that strikes that
also
And
expanding or when it was
population
growth
slowed down or when it speeded
when
not,
it
and
bystanders,
that
care
of
out
annum
must,
are aware
bystanders.
for the innocent
a
possession
it
economic
employers
on
innocent
wieid
Who
therefore, nave
again
what
17
...
any
to
ther° do
not seem
to be
tangible limits on this power
cost - price inflation,
compel
Broadway
WHitehall 4-6600
New York 4, N. Y.
and Financial Chronicle
The Commercial
18
Thursday, June 6/1957
...
(2630)
urban
The
Speaking About the
|
Threat of Inflation to Sousing
Plain
.
cations from all parts
try, and there is not
indication
that
the
the slightest
is
builders "if present
26
March
On
pealed
VA
was
a
upturn—though not certain when; opposes direct government
homebuilding loans and, in particular, favoring cities as against
the many in the expenditure of Urban Renewal subsidies;
and repeats offer to private enterprise to propose a private
hurting the home-building
is
views of homebuilders
brilliantly put forward
by George
Goodyear/ They have
The
ing.
A
the threat of
readying against
is
scien¬
and almost each day
breakthroughs
make
cir-
war,
culation.
tific
by
the press clippings that
preparations more and more
costly. A job that cost a halfbillion dollars may be out of date
wide
had
Judging
to
come
several
desk
million
peo¬
ple must Ipve
read George's
to
statement that
out
in
Cole
M.
Albert
be
This
has
a
brings a problem home to
Something we cannot ignore.
freedom.
night simply by a
us.
The
it.
ing
housing starts continue to go
If
of at¬
process
trition, almost without our know¬
down, down, down and disappear
almost to nothing, I can see where
Congress,
George's gloomy prediction could
be right.
Government—or the
both, can decide to
as
Warning Prediction
diction
you
invite
we
are
gloomy as his, but which pre¬
sents
a
different aspect of the
as
picture.
in
If
sentence:
one
accelerate that trend,
a
nail into our
in
direct loans for
homebuilding
hand and lead up to runaway
der
we
blow at our
ford houses.
Opposes
So
hand.
is
It
ministration
of
tainment
rank
will
to
come
be weighed
runaway
of
one
as
and
this con¬
inflation
scales of history,
the
in
its
a
greatest
achievements.
not
claiming that prices are
not
am
result of enormous
They are.
We know they are. In a clipping
rising
as a
inflationary pressures.
25, the headline reads:
Living
Costs
Increase
dated May
S.
"U.
Mainly the increase is
percentage-wise, and on ex¬
Again."
small
other
dozen
This
the
Don't mistake me on this point.
I
with
provisions.
provision
of
amount
about
ultimate
of
cost
and
still
the
Renewal
figuring
some
this, and this is what we have
up with.
The proposed in¬
crease
from two-thirds to three-
on
come
amination is due to a rise in some
will apply to presently
active projects and in dollars and
food
cents
prices.
of Economic
Explains Facts
Of
with
creasing,
prices
only
a
truth
are
some
is inevitable.
But that is
fraction of the story. The
is
being
actually
we
doing
are
maintaining
still
we
full-scale defensive
a
without
war—and
moment
the
at
that
waging
war
an
expanding
productivity in¬
degree of rising
our
in
this
free
a
and
enter¬
prise system.
such
on
a
this been done
scale?
Or
could
be
of
for
a
engineers and technicians for
missiles,
bomber
rockets,
atom
plants,
plants — and there you
Cole before the
Board of directors of the National Asso¬
ciation
of Home Builders, Washington,
♦An
D.
address
Cn May 27,
by
Mr.
1957.
com¬
$250,000,000.
Therefore
from $250,-
us
deduct
$108,000,000
000,000 and that is what is going
available
be
to
cities
to
haven't reached the active
what
is
project
quarters
cities
going to happen in
The increase to three-
the future.
the
the number
will reduce
benefited.
will get more to
I
that
And not only that, but con¬
stage.
of
you
ments
extra
from?
vote
will see are advertise¬
quarter, a half,
or
sometimes a full page appealing
What
this
It is coming out of
total funds, and so far as we can
see
now the Congress is going to
of
turn
that cities that are
is
where
But
ing
Open your newspapers and
to the advertising sections.
done?
means
assured
of their
twothirds will get $108,000,000 extra.
sider
else has
Where
it
already
in
course,
economy,
Life
quarters
Fewer
cities
the disadvantage
many.
see
Federal
no
to
grant
raise
the
proportion
see:
we
We
tion
see
tained
of
us
must
fear.
l"Cemmercial and Financial
May
16, 1957.
We
has
ever
it
stature
in
held
We
has
see
soon
demand
latent
a
of
proportions.
of
problem,
road
will be underway, we
imminent
expansion
an
of
break all
homebuilding that will
of
None
the
can
us
reach
to
tell
exactly
income of
certain
is
It
better
come.
in
housing for
With
me
me
say
free
same
of
it
that
is
as
an
people of
my first
obsession.
long
as
I
am
Administrator, builders
at any time to say and
speak frankly:
at
the
not only
country is
love.
fare
will
intention to battle for
the future as I have
in the past. The concept of
done
the
it
my
housing
Let
that
is
any
office is open
time. We all have
a
areas
home shortage.
Can Invite
Apathy
We learned the
early postwar years
is
the
scourge
of
that shortage
our
housing
It generates many
economy.
prob¬
solves none of them.
resulting from new
but
lems,
Socialism
hard way in the
Pressures
as
labor force
our
million,
ent
predicted
being
economists,
some
by
time
by which
is expected to be
compared to its pres¬
million.
level of about 70
shortages
those of middle
people
favorable to
appear
market for homes.
personal savings for this
broadened
Annual
based on figures for the
year,
first
quarter, are running at a sMcn'ially adjusted annual rate of $20.5
billion, which is 6.9% of dispos¬
able annual
income after taxes.
Personal
and
in
savings, both in volume
percentage of net dispos¬
greater than they
able income, are
in
were
the
1950 and
now
greatest
two
home
in our history,
1955, although we do not
producing
years
have the abnormal
accumula-
and
builders,
mortgage men are
complacent about the
present in¬
adequate production of the com¬
modity that is our chief stock in
trade, they will simply provide a
beachhead for socialistic oppor¬
The
the
in
tunists
see
savings habits of the Amer¬
The
may
specialized
near
housing field.
reaction from the
a
will
trends of
future, I believe,
recent months
that will permit our
private housing economy
to move
the general
economic trend.
In fact, such a
necessary change is already taking
place. It is becoming more widely
recognized that home production
to supply a definite demand is not
inflationary, but is in fact just the
opposite. Home buying is a form
of thrift, a plan of savings. A high
volume of home buying is a civic
benefit—a factor of strength in
the basic well-being of our people
and in the undergirding of our
American way of life.
ahead
step
in
with
my
ideal in mind—the wel¬
the
disposable personal
much as $100 billion
is
1965
by
a
only thing we can say for
quarter-century.
of the past
An increase in
ican
The
mistake and
produced in
housing deficit—a
take the form of
proposals for housing
income, the aged,
creased at an annual average rate
minorities, married college stu¬
of
3¥2%
over
the past decade,
dents,
and so on. If Realtors,
compared to the 2V2% rate of in¬
about
high gear. It could come
month, this summer,
this fall. The potentials are there.
1966. Man-hour pro¬
by
ductivity is calculated by the Fed¬
eral Reserve Board to have in¬
low into
next
volume of $550 billion
a
more
product, now at a
billion, is expected
of $427
peak
will begin from
swing
national
Gross
80
records.
when
Expansion in the general econ¬
should bring a commensu¬
rate
growth in the market for
homes and real estate of all kinds.
most
serious
omy
crease
multi-billion-
a
Federal
dollar
see
previously
never
result
a
which
a
history.
unexampled
As
attaining
of
substantially
or
the industry
see
house
Chronicle,"
home¬
the
years
industry
are
all
of
sus¬
experienced.
It is
step in the wrong direction
successiUl,,
most
span
Housing
a
interrup¬
temporary
a
the
in
from two-thirds to three-quarters.
—in the direction of that attrition
not
do take it, this is
we
our
reason
capital
is
It
me.
on
the long view. Yet
what
take
to
when
are
these cities the over-pro¬
homes, was indeed a
that it has actually
higher rates.
that
sures
building
done
household formation will
they understand tne pres¬
I think
quarters.
have
stat¬
continue until 1960,
then enter into a decade of
projects from two-thirds to threeWe
by
presently absorb, and
can
in
even
j
rate
grant
toward
Urban
conclude
me
market
indication
ing that I am aware of the pres¬
sures
that are on builders.
And
easy
Federal
the
contributed
money
Conclusion
let
Now
de¬
duction is limited. only to homes
We feel that there is every,
in certain price brackets. I believe
that this present de¬
we
can
safely say that we Were
mand will expand vigorouslv in
not in danger of over-building—
the years to come. New house¬
that the curtailment of mortgage
holds have been coming into be¬
credit which some of our money
ing at the rate of about 900,000 a
planners must have felt was nec¬
year since 1950. Projections by the
essary
to prevent a surplus of
Census Bureau indicate that this
level,
let me say
carefully.
increase
would
and
cities in more than 20
states and have:-discovered only
2 or 3 cities where they appear to
have built more homes than the
visited key
cies, coupled with the highest rate
of personal income in our history
with employment at a record
that
any ideas you can present for its
in.aginative use wLl be studied
grounds I am op¬
currency—along
great pos¬
has
the low—and
in
found
personally.
Since Jan. 1st, I have
clining—rate of residential vacan¬
government-builder
for
cooperation,
the provision in the
housing bill reported out by the
Senate
Committee
on
Banking
merits of this Ad¬
the
when
that
same
agencies and so
this lund
Subsidies
Housing
there
as
be
to
ought to
to operate through
314,
have
Yet
sibilities
to.
posed
personal opinion
my
un¬
striking a
are
economic structure.
More
the
On
they haven't got out of
far
guise,
any
to
prevailed in March.
that
present strength of this market is
there are strings at¬
course,
We
be.
opinion, if
making
my
a
owners.
local government
have the Government
we
trends should get out of
in¬
Of
property
tached
on.
flation, we may be living in tents
because we won't be able to af¬
present
other
driving
Specifically,
it
Putting
builders
with
all,
strong
bring
remodeling project, a demon¬
stration -house that
will inspire
coffins.
own
have
we
that home pro¬
permitted to fall
from its 1.3 million unit rate in
1955
to
the seasonally
adjusted
annual rate of only 880,000 units
duction has been
Expand
the future should
and expanding de¬
mand for the principal commodity
with
which our business is involved—homes. Evidence of the
of
First
discussing
been
and high
creating a
strong demand for new and better
homes, we feel that it is a matter
rising
incomes
of employment
with
of serious concern
Demands Will
Home
314
get into business. Once
or
levels
a
us
mortar dem¬
Worth
Fort
and other means,
new demand for
basic
a
1,200.000 dwellings a year.
steadily declining,
about
should be used for down-
in
have
reasonably reliable guide as
to what
we
may expect
in our
business in the years just ahead.
further.
go
grant fund which is known
The idea back of this fund
Down
Govern¬
the
that
says
ment can't
which is equally
make
to
law
basic
of
we
With vacancies
onstrations.
with you directly or indi¬
rectly; or to create subsidies or
increase
them.
Nothing in our
On the other hand, I have a pre¬
to
to-earth, brick and
taxpayers' money to com¬
the
like
300,000
sion of buildings,
and
factories
inventory
ing
some
stores,
offices,
jfl^es
families being
with the hous¬
new
nation, I do feel that there are
certain trends that seem to give
314.
is that it
pete
use
or
S.
Ken ne.n
900,000
formed each year,
our
We have available a demonstra¬
tion
With
being reduced by
dwellings annually
through demolitions, condemna¬
the tions, disasters, structural conver¬
homes,
cities.
should
move
continue.
need not and should not
fi¬
and
markets
participation
by privateenteprise in the renewal of our
I
will
with it, I am
pro-
nances,
serious
any
—
while
national economy advances in the
future the home market
commerce
duces,
active
the loss of our economic
It can disappear over¬
against
picture conjured up is one we can
all understand and appreciate. It
black
welcome
fact
up
taking the view that as our
In
great
which
proposal that might lead to more
Keep in mind there
constitutional safeguards
no
are
In that
few
in
—
white.
and
that idea of tents because
biblical simplicity.
The
I envy
-
piled
were at war.
we
segment of
days ago in Buffalo Isaitt that I would gladly considerA
in
situation
the
is
it
made;
was
our
that-r-none.
enough
more
Repeats Proposal
impaired. You can underline
been
won't
houses.
it
the
vote.
It
it.
i
.
.
-
tion of savings that
perfectly aware that
degree of con¬ in the present era of economic ex¬
fidence that I pansion this has not been the case,
so
exuberant¬ due to the managed curtailment of
ly displayed home-buying credit. We can re¬
in my early gard this circumstance only as a
serious temporary distortion that
years.
it was ignored in
Congress. Nothing happened. •
home-
to
become
future.
near
estate
real
successful
repeated;
was
doing.
right
the
the
r
almost 32 years of rather
With
into people who
run
recall
don't
Although this is a critical period
in history none of our rights have
tents because
there
retain
We
going
living in
are
we
to be
sometimes I
speak
to
you
as
been
have
builders
few years
a
just
loud,
right
the
retain
We
credit
home
appeal " because
particular
Cites
the beginning of an easing in the
situation and foresees housing expansion in
repeat the record on
want to
I
that
businesses.
own
our
will
situation
gener¬
mistake in curtailing mortgage credit.
a
difficult."
year.
run
act
to
failure
housing
the
such
And still—despite all
this—we retain our freedom.
We retain the right to choose,
next
my
making
experience
under my belt, I do not offer the
be serious.
They will be unable predictions of the future trend in
real
estate
to make firm plans for the rest of
with the same
the year, and as each day passes,
"
particularly because it
concern,
problems, and denying that home building to meet
inflationary, Mr. Keyes Indicts money managers
evidence showing we are at
market at a critical
time in the homebuilding season.
The effect on home builders will
segment of our economy
vast
for
indus¬
of serious
matter
promptly on this question will be
to knock out a prop from under
vividly illus¬
trated.
have been
a
demand is
severely
quote:
of
effect
"The
a
ates many
eco¬
an
was
I said, and I
try.
the
situation,
the
have
speak¬
time for plain
a
where
case,
imbalance
nomic
urban renewal program.
This
;
clear
this
Here.
interest
the
national realtors' head concludes this nation suffers
housing deficit in most ?reas—a serious home shortage
that we were not in danger of over-building. Terming
—and
ap¬
raise
Congress to
to 5 %.
the
to
urgently
I
inflation, we may be living in tents because we
won't be able to afford houses." Mr. Cole is sure of housing
to runaway
us
from
is another.
There
government's housing chief tells
trends should get out of hand and lead
defending tight money,
In
alleged housing require¬
Contrasting the actual rate against our
ments,
side of the coin.
one
Association of Real Estate Boards
President, National
two-thirdsretarding
effect.
That
KEYES*
By KENNETH S.
contributions has had a
II. S. Housing Administrator
Hoosing"
"The Future of
of the coun¬
ALBERT M. COLE*
By
is
reseWal program
growing„by'leaps and bounds as
iriST we are swamped by appli¬
American
people.
♦An
Southeastern
Bankers
Beach,
by
address
Clinic
Association
Florida,
Keyes before the
of
the
Mortgage
of America, Miami
Mr.
May
16,
1957.
It
the
was
a
basic
served
a
mistake to assume
secondary
that
of homes
sort of de-
production
Volume 185
Number 5644
The Commercial and Financial Chronicle
...
(2631)
mand—something that could be
readily postponed or considered as
a
"counter-cyclical" device
by
magnitude of,pur robust
panding economy.^
'
than
Less
month
a
and ex¬
economic controllers.
convention
of
It is also becoming much clearer
that any danger of over-produc¬
Bankers
Association
Miami Beach, Mr. J. L. Robertson
tion
of the
of
ahead
housing
is
in
the
decade
remote—the rate
of
new
"To
depletion
the
of
housing
volume
here
that
will
and
dreds
that
still
we
thousands
of
have
of
hun¬
occupied
dwellings in this country that are
not Tit to live in, all combine to
indicate
an
increasingly strong
demand
for
in
homes
ahead.
-^7;.
■
the
>
year
•
_
,
meantime
be
can
until
—
made,
With these factors becoming more
we see the beginning of
_an easing in the home credit sit¬
uation.
There has already been
some
lessening of discounts on
FHA 5% mortgages. The modifi¬
Skyrocketing
sound
be de¬
tions
to
the
cation
of the
Federal
Home Loan
Bank
regulations to permit mem¬
ber banks to purchase loans origi¬
nated
by other Associations has
helped in certain areas. The com¬
promise bill passed by the House
a week ago provides for a very
substantial reduction
in
FHA
down
payment requirements and
authorizes Fanny Mae to increase
its
capacity for the purchase of
mortgages by an additional $1V4
billion.
Therefore the
offer
to
seems
of
many
the
near
the
future
removal
controls
that
of
situations
depression of the thirties when
housing frcm keeping step
key industries in our
expanding economy.
u s.
other
low
of
and
that
moderately
housing.
.rental
sound
of
use
I
the
convinced
a
renewal
urban
carried out with a major
emphasis on conservation. Com¬
plete
clearance
and
redevelop¬
program
ment
as
of
means
a
slum
worst
bur
eliminating
will of
areas
World
because
of
its
cost.
tremendous
complete
demolition and rebuilding may be
in
bringing about structural
changes, it is hot likely to produce
a significant volume of low-pribted
rental
housing because of
the
steadily mounting cost of new
construction.
The
true
destiny of the urban
renewal program, as we see it, is
convert obsolete residential
to
to
areas
and
that
livability through a process
will
depend
primarilv on
modernization
of
existing
moderate
can
that
areas
a
of
demolition,
only those structures
obstruct
urban
the
We
people
during
with
some
mu¬
nicipal improvements to bring the
environment
today's standard.
neighborhood
up
to
■
*
*
*
Another
Supply
important development
to be expected in the near future
of
*
industry, I believe, will be
the. facing
of
the
fundamental
problem of money and credit that
concerns us so greatly today. Our
Association has heartily applauded
President
Eisenhower's
proposal
for a National Monetary Commis¬
sion
to
make
a
thorough-going
analysis of the adequacy of our
monetary and credit structure.
our
Whether such
a
study
comes
heads
will
to
up
confronts
have
we
for credit than
be met under present circum¬
It
stances.
for
when
us
that
demand
greater
can
the problem
us
to
would
be
continue
permit
our
development to be lim¬
the scale of our present
to
credit
certain
facilities.
that
facilities
of
our
the
must
make
mortgage
credit
We
teaching
ligence
;
and
up
and
New
terms
them.
Russia,
eye"
what
I
so
new
Offers
Virginia El. &
"electric
Merrill
Pierce,
by
anybody.
is
the
An¬
record-
turntable
on
matic' stopping device.
complicated
nature
missiles that
can
Fenner
take
an
& Beane and associates yesterday
man
Of
a
offered 1,000,000 shares
of Virginia Electric & Power Co.
common
stock at $25 per share.
(June 5)
The
.
Net
won
more
over¬
construction
for
tures
expendi¬
bor iii
During the period from
1952, to March 31, 1957,
the company maide gross additions
ple
hundred
women
their
as
I
the
future
match the
no
limit
on
Carolina
North
It
ginia.
gas
also
and
West
(5)
•
come
Hence, instead of
farmers,
we
press
formerly ;will
well
as
lawyers, trained outside salesmen
and
of forcing
of
inside
pencil-pushers,
graduation to attend
school to prepare for the
after
night
NEW
AGE.
need
character
good
more
.
than
in
before.
ever
homes,
will
of the
this
changes ahead.
age.
aware
Kelly-Yearick & Go.
Forming in Sunbury
Tell
Better
men
duty J will be
push buttons. La¬
general is not.
This
be
churches,
absolutely
new
Wise
electronic
the
are
training •&
and
schools
essential
fices at 701
in gage in
push-button
young
SUNBURY, Pa.—Kelly-Yearick
Co., is being formed with of¬
people
who take, evening courses now to
Market
Street
obtained under
is neither
an
Theron
sales
D.
Conrad
&
Co., Inc.,
manager.
offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
any
of these securities.
New Issue
June 3, 1957
173,970 Shares
Dorr-Oliver
Incorporated
an
Common Stock
com¬
extending to 1970. Popula¬
the
territory served -is
($7.50 Par Value)
of
estimated
two-thirds
at
roughly
2,600,000,
whom
of
reside
in
-
Transferable
Subscription Warrants evidencing rights to subscribe for
communities of 1,000 or more. The
these shares, at
principal industries produce to¬
bacco
products,
ships,
textiles,
Stock and
nylon, i food
chemicals, paper, pulp,
wood
products, metal
products,
machinery, stone and clay prod¬
ucts, trunks and bags.
cellophane,
products,
With First Florida
issued
one
the
rate
of
one
share for each six shares of Common
share for each three shares of Preferred Stock, have been
by the Company to holders of its outstanding Common and
at the close of business May 29, 1957.
Preferred Stocks held of record
The Warrants
expire at 3:30 P.M., Eastern Daylight Saving Time, on
June 12, 1957. During and after the subscription period, shares of
T.;;:,T Common Stock may be offered by the underwriters, as more fully set
fcrth in the Prospectus.
(Special to The Financial Chronicle)
E.
WINTER HAVEN, Fla.— Murray
Goold is now connected with
First
Florida
Investors,
Inc.,
122
Subscription Price to Warrant Holders
West Central Avenue.
Two Join
$13.75 Per Share
Ireland
(Special to The Financial Chronicle)
WINTER PARK, Fla.—Harry S.
and Vincent G. Newell, Jr.
Keck
are
now
with
Ireland
&
Co.,
Copies of the Prospectus may be obtained in any State in which this announcement is
only such of the underwriters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such States.
circulated from
Knowel Building.
Bache Adds
to
Staff
Dominick
(Special to The Financial Chronicle)
CHICAGO,
111.
—
Ronald
D.
Green has been added to the staff
of Bache &
Co., 135 South La Salle
Street.
I
&
en¬
Lee
Yearick, a principal of the
d'irm, has been associated with
Vir¬
contract with
transmission
independent
tion
a
announcement
to
securities business.
a
H.
The
natural
distributes
may
merchants
I advise young men to be¬
expert machinists instead of
Instead
on our young peo¬
that they can get a degree.
Character Will
Employers, it is true, will always
in Norfolk and Newport News,
char¬
Our great problem will not
to utility
plant of $268,800,000 and
retirements of $24,200,000, result¬
ing in net additions of $244,600,000. Construction expenditures for
1957 are estimated at $70,000,000
of which $15,000,000 had been ex¬
pended through March 31.
Virginia Electric & Power Co.
is an electric utility operating in
most of Virginia and in parts of
salaries
brains, initiative, and loy¬
subsidize
and salesmen.
courses
so
"
(3)
subsidizing
eventually
and
instead
•
cannot
(4)
who
wish
labor
be to raise crops, build
homes, or
manufacture goods — but to get
in
I predict that the above
changes
will mean that young graduates
chief
vast extent of the
1,
more
courses,
these
And remember that these
merely to
therefor.
Jan.
airplane without any hu¬
several
be
since
to reimburse the treasury
or
the
can
far
routine
acter;
alty.
They
opportunities
oldsters had.
we
who
people to buy.
people
young
and
same
needed.
used to pro¬
these shares will be
vide
to
sale of
the
from
proceeds
have
ioned
of a manufacturing plant
dozen employees, in contrast
a
our
only
Changes Mean
for those with the
necessary
graduate this month.
principle of electron¬
ics is being applied today to op¬
by
Those
There will be
colleges would wake
up to these changes.
Better pen¬
sion off the professors who can
teach only the orthodox old-fash¬
eration
award
of the
shares at competitive sale June 4
on a bid of $24.21 a share.
group
This
to
schools
guidance.;
Lynch,
envy
than
our
guided
are
chase and
I
,
phonographs, including the auto¬
Power Common Stock
Moslem
not
the
Only the serious and intel¬
ligent employees will get raises.
and
changes
opportuni¬
gradually become obsolete.
(2)
y
warfare—but in education!
the
will
and
the
and
the
hope to get
readily
learn new skills will be
kept on
at reduced
hours, but with the
same
take-home pay.
This will
boost
the
Do-it-yourself indus¬
over¬
The great masses of
tremendous
opens
illustration
changer
to
is
A
are
other
armies
1
to remain neutral. Elec¬
the atom will cause
eager
tually touched
Lynch Group
massed
China,
tronics
doors at the
proper moment without being ac¬
Merrill
in
developments
simple example
mean
which
thought
who
marvelous
(1) Manual
will
nations will be only a nuisance to
clutter up a battlefield under such
conditions. Premier Nehru recog¬
nizes this, and that is why he is
has
automation.
of
of
button basis.
the
vast
What
J
always
and
ing to use nuclear weapons, wars tries!
are swiftly
moving onto a push¬
Roger W. Babson
for
has
Warfare
graduates
New
for
must
a
properly for it.
judgment of gradu¬
high I. Q. ;
.V
Approach to
are
ties exist for those willing to train
the Free Nations of
Europe learn¬
Out of elec¬
basis
intel¬
customers.
new
good jobs. The field of .advertis¬
ing and selling is still in its in¬
turn
the
secure
fancy,
Europe when the time seemed
ripe for an attack. However, with
college
in
toward
by highly paid, intelli¬
job will be
qualifications
run
level,
ally solve the p ro b 1 e m s that
plague us at the money level and
be the stronger for having solved
a
7.: Russia
a warn¬
tronics
and
to
June
*
graduates.
the ability that
will eventu¬
use
more
with
ates
ing note to
high
school
forced to accumulate
the war days exhausted,
again faced with higher
and
more
will
25%
gent salesman whose
unthinkable
to
economic
ited
requirements
should
sound
come
about
And with it will come
come.
facing
this
was
God has given us, we
through this proposal or through
some alternative to it, it must and
a
money
interest rates, and if we keep our
rayon,
Wants Increased Money
when
were
are
we
pany
that
many
employ-
ment
Second
of the
end
plentiful at 4 and 4%. Now with
the backlog of savings that our
or
renewal
recommend
combined
be
in
unfit for rehabilitation
are
program.
this
rehabilitation
be coupled with
amount
eliminating
that
and
structures
where this
•
attractiveness
modern
We prospered fol¬
War
con¬
help, but not for a
present-day
jobs.
great
present
ne¬
cessity be limited in its application
However successful
a
human
Their
without many
high
lowing the
the
re¬
routine work¬
the
2-bath
spells-out
on
home
volume
through
get
loans cost 6%.
priced
am
this
do
can
we
the
increase
to
\
is
need
hey
could be built for $6,500, and FHA
3-bedroom,
and
adviser
f
uiir
Even with
looking to the future of our
housing economy, it is clear that
need
t
ers.
modest
In
we
This
employers
We survived the
us.
research
can
have
kept
with
that confront
have
technological
that
,
apparent,
costs
search.
our opera¬
changing
labor
precedented
it—
see
financial
forced employers to resort to
veloped, you and I—be we real¬
tor, builder, or mortgage banker,
I
England
of developments in automation for the benefit of
June graduates. Envisages as our great problem in the years
ahead net that of production but rather
consumption.
p
these
and
and effective programs can
or
all three—will, as
simply have to adjust
Eased Home Credit Situation
,
the
In
studies
salesgirl is in the
becoming obsolete.. Be¬
long she will be replaced
60% by self-service counters, 15%
by push-button vending machines,
sequences
accompany
fact
New
typical
fore
By ROGER W. BABSON
Noted
growth in total output
employment, the nation's
money supply will have to grow."
inventory through demolitions, and
the
The
process of
Changes Wrought by Automation
expanding
transactions
of
in
System declared:
for the
provide
ahead.
Independent
Governors of the
of
Federal Reserve
household formations, the rate of
current
Board
the
them for the better jobs
prepare
Jane Graduates Are Advised About
the
at
ago
19
Dominick
■
as
Chronicle.. .Thursday, June 6, 1957
The Commercial and Financial
20
(2632)
properly allocable to the purchase
of specific items.
:
v
-
r
Mexico's
Prosperity Cited by U. S. Banker
.
T
News About Banks
BRANCHES
NEW
OFFICERS, ETC.
REVISED
"*v;%
■■
i-;
San
economic
Jr., has been
member of the Board of
elected
a
nounced
the
over
McCloy, Chairman of the
J
John
it was an¬
week-end by
New York,
Bank,
Board.
"
'
•
if
if
-
been
has
Fox
F.
James
ap¬
pointed
Assistant
Director
of
public relations and advertising
of The
Chase Manhattan Bank,
New
York,
George
Champion,
President of the Bank, announced
June 5.
on
associated with
Industrial
Buffalo
value
to $937,500 consisting of
shares of the same par
by the New York State
share,
if
if
:
an¬
fice
Regional
Manhattan
Bank,
June 3 opened a
in the Bronx at 121
Chase
The
York
on
branch
new
170th
East
branch gives Chase
total of 94 banking
offices in New York City: 36 in
The
new
Manhattan
a
and
Bronx
the
lyn.
Philip Burns is Manager of the
new branch and Stephen Dinga is
Assistant Manager,
June 3 of the
Fifth Avenue Bank Office of
Bank of New York at Fifth
The
New
The
opening
on
Of¬
Street, recalls
the
famous
old
brownstone on
the
same
corner
which housed
the first bank ever
to actively
seek women's accounts and which
later served as the locale for J.
Marquand's "Point of No Re¬
turn."
V ;-J:.'
Before the turn of the century,
P.
in the
home and it was considered almost unladylike to know anything
woman's: place
when
,
Trust
and
Company,
was
katchewan
common
at Vancouver
$100,000 was merged with
and into Equitable Security Trust
title
and
charter
intendent.
assigned
of
if
if
,
First National
4
of
Bank
Deiray
part of The Bank of New
York in 1948) shocked conserva¬
$200,000 by a stock dividend and
(which
Bank
Avenue
Fifth
money,
or
came
deliberately
seeking the patronage of women.
It did
so,
according to Bank
Spokesmen, with a thoroughness
and continuity unmatched in the
tive New Yorkers by
city.
A.
largely responsible for
man
attention
S.
sex
President
Frissell,
Bank from
the fair
to
$200,000 to $300,000 by the
effective May
sale
22
of new stock,
(30,000 shares, par value $10).
1885 to
was
the
of
if
if
if
director
and
States
National
of
Bank
Galveston, Tex. effective July
1,
succeeding R. Lee Kempner, who
of the Ex¬
Chairman
named
was
William F.
Oliver, President of
Sugar
Refining
was
appointed a Di¬
American
Company,
of
rector
Trust
City
Don P. Doyle
on
*p::
Francis
elected
Board
the
at
June 4.
R.
John
'
of Douglas, Phoenix,
The Bank
Ariz., is offering to holders of its
Common Stock of record at the
close of business May 28, rights to
000
shares
rate
the
each
if
of
one
and
two
Stock
Common
of
share
new
one-half
at
for
shares
held.
A
plan to merge The Freeport
Bank of Freeport, N. Y., into the
Long Island Trust Co., has been
announced to John J. Randall and
George L.
Hubbell,
Chairmen of
the Boards of the two banks. Sub¬
ject to approval of the stockhold¬
ers
of both the banks and of state
and
ger
Federal
authorities the
will result in
stitution
over
with
mer¬
banking in¬
a
total
resources
of
$65,000,000 and deposits to¬
taling
more
than $58,000,000.
approved
provide
shares
for
of
the
Long
stock
for
Bank
both
by
issuance
Island
boards
of
1.6
Trust
Co.
Stock.
Ralph
each
W.
share
Trust
Co.
Common
Taylor,
of
and
the
Freeport
President of
will be Vice-
Long
will
Island
continue
divided
Stock
as
into
of the par value
of $5 per share. Upon issuance of
the additional 160,000 shares of
Common Stock offered, the Bank's
shares
Common
to
Stock
$2,800,000
will
on
4
divided
share.
The
Commission.
covered
of
amount
the
$2,240,000 anticipated to be received
by the Bank from the sale of the
160,000 additional shares of the
Common
Stock
capital
will
funds
be
of
added
the
to
Bank,
$800,000 to Capital Stock and the
remainder
to
Capital
Surplus,
except
chase
Diesel
is
to
secured
be
hopper
electric
-
that
portion
of the
pur¬
of the assets of the
Farmers and Stockmens Bank not
price
and
31
by
and 5
switching
cars
road
locomotives, estimated to cost $3,210,698.
Associates in the offering are:
Dick & Merle-Smith; R.
W. Press-
prich & Co.; Freeman & Co.; and
McMaster Hutchinson & Co.'
Hill
$23.7 million.
'
B. J. Van Ingen & Co. Inc.,
Street.
tight
credit
industrial
at
Wall
Street
The
to
billion
85
in
pesos
1955.
of
New
La.
—
Orleans
The
on
May 30 elected the following new
William
C.
Hildebrand,
White, Hattier & Sanford, Presi¬
Abroms,
Kohl-
dent;
William
meyer
& Co., Vice-President; and
Parks
D.
Pedrick,
Jr.,
Howard,
Weil, Labouisse, Friedrichs & Co.,
Secretary-Treasurer.
than
30
Sports
Program at Field Day
Street's
Wall
champions
for
in
termined
and tennis
will be de¬
golf
1957
tournament
play
at
of the Bond
Club of New York to be held at
the annual Field Day
Sleepy Hollow Country Club
Scarborough, N. Y. on June 7.
hundred of the finan¬
the
An indication of the
general
ex¬
dustry is found in the rise of bank
credit
of
about
12%
over
a
year
Particularly agricultural loans
in heavy demand, he noted.
"There
at
Mexican
reserve
banks,"
Several
cial district's top golfers will com¬
pete for three Bond Club trophies
cup for low
—the Ex-Presidents'
position of
the Candee Cup for low
and the Christie Cup for
match play vs. par.
William H.
he
Todd,
little actual change
was
in the over-all
the
more
-■<•
Elaborate
pansionary trends of Mexican in¬
ago.
for
Street
organiza¬
57 Wil¬
located at
years.
con¬
estimates, quoted bv Mr.
Dickhuth, place the gross national
product at 96 billion pesos in 1956,
compared
Van Ingen
been
has
tion
headquarters at the 40
address in the near
its
make
Official
rate.
under¬
writers, distributors and dealers
in municipal bonds, is expected to
generally
production
high
a
is
affiliate,
corporate
their
j
Government's Financial Wisdom
Although
Co. has re¬
&
Darlington
cently moved its New York office
to
the new address at 40 Wall
liam
pesos, or
of
New York.
closed the year with a
budgetary surplus of 296 million
ernment
wrote.
gross,
net,
Kuhn, Loeb &
of
II,
of
Chairman
"This position was maintained de¬
as
increase in imports
mittee,
unfavorable balance
the
Golf
Co.,
Com¬
tournament.
large
a
which left
an
of trade of $220.7 billion Tor 1956.
This
was
receipts
easily
of
covered
$283.6
by
million
net
from
He concluded that these figures
leave
no
doubt
as
to the financial
wisdom of the central government
despite complaints that money has
Dickhuth
cial
estimates.
In
the
consumer
goods category alone, the "View¬
point" editor stated, the gain was
reported at 7.5%.
Included
dustries
of 25%
among
which
and
individual in¬
showed
more
over
increases
1955
were
group
round-robin
Club
but equally enthusi¬
will engage in a
tournament for the
tennis cham¬
doubles
This contest will be di¬
Dudley F. Cates of Kid¬
der, Peabody & Co.
pionship.
rected by
A
year
gram
11.4% last year, according to offi¬
will be in charge of the
A smaller
astic
Bond
tourism and border trade."
Manufactured goods output rose
Elects
Glub
ORLEANS,
officers:
$441
commented.
New Orleans Bond
Club
$604
were
been kept too tight, Mr.
Bond
at
the
Association
Traders
spite
ization of the Interstate Commerce
issue
all types of securities.:
Mr. Kumm is a member of
on April' 28, following a
normalSeasonal decline.' The gov¬
are
The
stood
^
specialized in sugar se¬
curities
and
more
recently has
broadened his activities to include
future.
to
yield from 4% to 5% according to
maturity. Issuance and sale of the
certificates are subject to author¬
NEW
entire
$2,-
scaled
are
Dec.
on
of the
reserves
Mexico
Mexican
sive.
into 560,value of $5
shares of the par
be¬
1, 1957 to June 1, 1972, inclu¬
certificates
Mr.
•million
550,000 of Central of Georgia Ry.
5%
equipment trust certificates,
series D, maturing semi-annually
The
reserves,"
reports.
de
million
St.
offered
and eco¬
"Last year
Gold and dollar
Banco
Inc. and
Co.
June
politics
exchange
Dickhuth
increased
be
per
the
the Freeport Bank,
President
of
rants, expire on June 14.
On March 31, the Bank's capi¬
talization consisted of $2,000,0" 0
000
The terms of the merger agree¬
ment
Rights to subscribe, evidenced
by transferable Subscription War¬
&
Stuart
attracted
management.
increase of $60 million in
an
foreign
Offers Equip. Tr. Gtfs.
250
400,000
saw
Kalsey, Stuart Group
.
of
nomic
tinues
Halsey,
were
of their unlisted
manager
as
He had
he
recently,
ivumm
&
securities department.;
Security
ity, in Mexican
System, effective May 31.
associates
Hicks
United
by continuing evidence of stabil¬
Federal
the
of
member
a
the
there
Foreign investors
National
has
v* ,u.
Coggeshall
investment
said.
capital of the bank is $z00,and its surplus $200,000.
Dec.
subscribe at $14 per share to 160,-
Savings Bank, Brooklyn, N. Y.
*
' >,l
if
if
has TTeen
Trustee of the Flatbush
a
;
vhV
*
*
St.
•
also elected
Vice-Presidents
and
di¬
rectors.
Farmers
Bank
Company
meeting
senior
businessmen
'
Amalie,
the
from
came
as¬
with
sociated
of
25
and was
iormerly
15%
or
1955.
France, Italy, Canada and
United Kingdom have been
vying for the attention of Mexican
" '? _-'k
Islands,
million,
for
than
years
the
*
Islands
Virgin
$89
in
more
exceed
from
<£he In¬
A
at
Kumm
been
securities
business
foreign in¬
now
States," Mr. Dickhuth pointed out.
Trade missions and exhibits
the
J-
Charlotte
Reserve
The
'it
'
Virgin
■
Thomas,
come
<J*
jfc
(
in
Mexico
buljt
funds
the
of
and J. E. Meyers were
the
The
Bank,
Robert A. Vineyard was elected
President
ecutive Committee.
1916.
V
.',r'
'
'ty ttfr-X+'i Si"5#
.
•
000
United
,
The
this
from
$150,000 * to
from
stock
capital
Region Staff,
ternational
'
f
o
trading
Mr.
(U. S.) with last year's
than
"The
Office
Head
the
to
Inspector, attached to
ran
Beach, Fla. increased its common
business
1
increase
more
J1950 and
f^>r the past two years* has been
""""
the
be¬
about
$1 billion
in
joined
Mark
Mr.
the
Mr. Dickhuth revealed
Assistant Super¬
as
of
Association
vestments in
Sas¬
was
convention
Bankers
Department in
Qred it
"Equitable Security Trust Com¬
pany," effective May 6.
\
if
Veracruz,
the
Bank in Ontario 20 years ago, was
Wilmington, Del., un¬
the
der
has
G, A. Mark, who has been an
Inspector at the Bank's Head Of¬
fice, has been transferred to the
British Columbia Regional Office
stock of
Company,
Mexican
couver.
of Smyrna,
with
Del.,
Smyrna,
He
as
23rd
Superintendents' department
at Regina, Winnipeg and Montreal
before
being assigned to Van¬
}»»
Bank
National
The
branches.
change,
department.
the
charter of Mont¬
gomery
Norristown
Bank
and
Trust
Company
and
new
title
Montgomery
County Bank and
Trust Company, effective May 20.
under
.♦>
various
in
served
and
1921
Pa.,
of
Bank
tional
Ex¬
Stock
in¬
their
Manager of
Department in 1955, until his ap¬
pointment as Chief Inspector.
Mr. Isaac joined the bank in
Na¬
Penn Valley
Hatfield,
The
and
Pa.,
he
where
-"r%Tr
'7-:::
erican
m
Writing in the first issue of the
bank's new monthly publication,
"Viewpoint," after attending the
Appointed as Inspector at Head
1953, he became Assist¬
ant
Manager
of the Personnel
Bank
Norristown,
A
manager
Office in
Norristown
associate
members
government and banking officials.
main Ottawa branch.
Bank's
the
$
i'fi
&
Montgomery
44th
and
Avenue
a
and
Central
ter viewed
three
for
and
Assistant
was
years
directors,
by
branches
Ontario
supervisors.
and
ers
merged
if
if
under
Naugatuck
proposed
merger
ac¬
subject to approval of stockhold¬
in Queens, 15 in
eight in Brooke
35
Manhattan,
of
to
National
Naugatuck
the
Bank
Street.
quire
plans
Conn.,
Wall Street, New York
members New York Stock
rixcnange and
countries
Dickhuth
Eugene
become
40
American
Hunkin, 30 years with the
Bank, has served in a number of
The Colonial Trust Company of
Waterbury,
Co.,
other
H.
has
Kumm
City,
Mexico
Mr.
New
William
J.
associated with Hill, Darlington &
mation tour of
Vancouver.
at
who
from an infor¬
Peter
that
5
Columbia
British
if
if
if
Canada,
June
on
goods, even in heavy
Hill, Darlington & Go.
American
just returned
sonnel, and is succeeded as Chief
Inspector by R. D. Isaac, who has
been an Inspector at the Bank's
Banking Department.
if
v
nounced
Com¬
of
Bank
Hunkin, formerly Chief Inspector
of
the
Bank, has
been named
Assistant General Manager - Per¬
value of $10 per
shares of the par
the
,
Toronto,
merce,
78,125
of
,
consumer
J. William Kumm Willi
of
President
the
over
quarter and in the out¬
industries.
H. EuDick¬
Vice-
by
huth,
Valley Bank, ef¬
Paiaro
Canadian
The
N.
consisting
27
gene
appreciable
year
recorded
be
put of nearly all types of producer
May
reported
Trust Co.,
Buf¬
Bank,
latter
fective April 26.
Y., was given approval
to increase its Capital Stock from
falo,
the
of
title
thp
if
if
if
advertising
and
public relations
department.
charter
1956
first
and
investors.
this
gains will
Mexico, it was
and
of
months
in
general
prosperity i n
under
the
and under
Calif.,
Watsonville,
Mr. Reynolds was 59
of age.
years
with
merged
was
■
show that in the first three
1957
created
and
vestments
Pajaro Valley Savings Bank,
into
May 30.
on
Valley
Pajaro
$250,000,
Reynolds a Vice-Presi¬
dent and Secretary of the Board
of Directors of the Chase National
Bank, New York from 1942 to
1947 died in Mount Vernon, N. Y.
Irving
93,750
Director
and
dent
if
if
if
Wheeler,
Vice-Presi¬
of the Bank''s
Crawford
National
Bank of Watsonville, Watsonville,
Calif.,
with
common
stock
of
The
the
of
Freeport office.
$781,250
Fox will be
Mr.
Officer
Executive
Cnief
Chase Manhat¬
of The
Directors
tan
Oates
F.
James
foreign
attracts
in¬
foreign
record
attracted
1955
' '
economic
stability of Mexican politics and
of the pres¬
beginning
administration
ent
*•
'• •$.
'
"
r.
and praises government's financial
management
Sound fiscal policies
Borthwick.
Anderson
■
Mexico's
reviews
executive
Co.
Mr. Dickhuth finds
wisdom.
an¬
by the bank's President,
nounced
CAPITALIZATIONS
been
has
Calif,
Diego,
''
V
.
and prospects,
conditions
Savings Bank of
;ional Trust and
,
Trust
American
appointment of Gerald A.
Mokma,
as
customer
relations rr
representative of The First Na-
Bankers
and
v'v;;
*
*
»''
■"
■
The
CONSOLIDATIONS
NEW
'iiiv
Bond
be
introduced
last
part of the sports
proved so
popular
with
clinic
golf
as
Club
members
that it
pro¬
will
repeated this year with prom¬
inent
professionals demonstrating
the fine
Other
points of the game.
athletic
diversions,
in¬
horseshoe pitching and
trap shooting, will be open to
all bond men attending the out¬
cluding
ing.
electrical equipment, railroad cars,
glass,
"and
paper
TV
and
and cellulose, radio
aluminum products,
according to Mr. Dickhuth.
Preliminary surveys of business
activity for the first quarter of
E'mer
K.
Elmer K. Mason,
Mason
member of the
New York Stock Exchange,
away
May
2^! at the
passed
age of 55.
Volume 185
.Number 5644...The Commercial and Financial Chronicle
(2633)
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•••
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WORLD'S
RCA
LARGEST
almost the
newest
twinkling of
—
and
work to seconds
by millions!
an eye,
culations that would take any person
The
BRAIN
BIZMAC reduces weeks of paper
cuts costs
in
ELECTRONIC
largest
—
electronics handles cal¬
with
days of work.
electronic "brain" (more
statistics
accu¬
It
daily and put its finger
on any one
of millions of facts
push-button speed.
can
help department stores keep split-second inventory
rately, electronic data processing system) is Bizmac, developed
control,
by RCA.
supply problems for big chain-store operations.
Bizmac is
/
quickly becoming one of the most powerful allies
industry. It "reads," sorts, catalogs, analyzes,
of business and
calculates, forecasts—reduces months of paper work to secondscuts costs
by millions!
For insurance
can
greatly simplify warehousing, storage and product-
And for the U. S.
ordnance parts
The
all
Army, trikeeps track of literally billions of
over
the world.
leadership in electronic research that made Bizmac
sible is inherent in all RCA
companies, Bizmac
can
digest mountains of
RADIO
ELECTRONICS
life
FOR
LIVING
,
products and services—to help make
fuller, easier, safer through "Electronics for Living."
CORPORATION
OF
pos¬
AMERICA
.
21
Financial Chronicle.
The Commercial and
22
"T
THE EDITOR:
LETTER TO
is
this
call
we
Checkboak
vs.
Other normal price factors
movement of prices. Prices always
periods of prosperity. Evwith anything to sell is inclined to make the price all that
eryone
the traffic will bear.
normal law of
extent,
expanding in its effect. Certainly
the demand of today is abnormal
Perhaps the old
head of Southern Newspaper Publisher's
Association pinpoints the crux of the money-credit problem in
the relationship between credit volume and actual cash volume.
Mr. Stewart contends we should make ample provision for real
cash as the medium of exchange, for we are depending too
much on the checkbook without realizing that credit is sound
ington, Ky., former
dated in cash.
When is
been
gold
country's large fi¬
managing a
the
of
One
institutions
nancial
annual
prints
factors
report
their
table
highly
illuminates
variety of
for
a
this
This
in
1933
1956.
mists
A
ference in
lar is
is
a
the
worth
1933
cents
47
1956 dol-
and
bad thing and that
that time
which the actual value of the dol¬
specific time
with another time may
pared
measured.
If
Money and prices at
ular time
economy.
partic¬
parts of the current
fair comparison of
are
A
money
money
also
any
and
prices in 1933 and
and prices in 1956 must
the whole economy
compare
approximately
The
1956
dollar
at $35 ™
an
The
valbe
1956
an
the
ounce.
represented
the
was
the
dollar
gradual and
col¬
in 1938.
period 1939 to 1956, when
statistical value
the
gross
of
the dollar
national production in-
creased from $91.1 billion to $411
billion.
1933
the
to
move-
period corporate earnings increased from
$5.0 billion to $22 billion, and disposable oersonal income increased
In this
Certainly if the
product of 1933.
1956 47-cent dollar is
same
.
deflation and 100%; for sinking fund purposes
much talk of a reoetition, not they
may
be
redeemed
after
merely of 1.938 but also of 1929,
June 1, 1959, at 100%.
When in late 1955 and early 1956
Northern
States Power
is an
no
that
think
return
that
we
the economy had been adjusted to operating public utility furnishing
a higher interest rate, our mone- electricity to an estimated popu¬
^ary ieacjers began to fear that lation of 290,000 and gas to an
Charts that indicate changes in money rates were not yet high estimated
150,000 population in
the volume of money supply show enough and, that money was too, west
central'Wisconsin and in
sharp advances in all elements of easy. Consequences have been so southeastern
Minnesota.
Among
this supply except actual cash. All
obvious as to make superfluous the cities furnished with one or
alleged money experts are not any detailed discussion of what more services are Eau Claire and
agreed as to what constitutes the has happened;
La Crosse, Wis., and Red Wing
money supply.
Of course, there
and Winona, Minn.
Stage Set for Growth Again
can be no question as to the items
gave us
the 100-cent dollar of 1933.
^
Definmg the Money Supply
not
was
in
the
same
direc-
ECONOMIC
•
made by check
accepted
erally
The check is genas
cash until it
,,
bounces.
•
.
It
is
,
,
assumed
always
to be redeemable
cash,
in
::.7
.
Some of the money
Value of
-
:,v
1
Corporate
Gross
(Annual
National
Average)
Product
$1.00
$56.0
0.97
0.94
Earnings
Disposable
_
__
After
Personal
Taxes
.
Income
1934__
1935
.
_
<
—$0.3
$45.7
65.0
1.0
52.0
72.5
2.2
1936;-___.
0.93
82.7
4.3
0.91
90.8
4.7
1938
0.92
66.2
71.0
1
85.2
2.3
1939:_.->._
0.93
91.1
5.0
1940
0.93
100.6
6.5
1941_
0.88
125.8
9.4
93.0
1942
0.79
159.1
9.5
117.5
0.75
192.5
10.5
133.5
0.74
211.4
10.4
146.8
-
1943
1944
_
_
/
,
65.7
70.4
76.1
1945_
0.72
213.6
8.3
150.4
1946
0.66
209.2
13.4
159.2
1947
0.58
232.2
18.2
169.0
1948
0.54
257.3
20.3
187.6
0.54
257.3
15.8
188.2
1949—
—
0.54
1952
1953
226.1
16.1
237.4
363.2
16.7
250.2
0.48
(e) Estimated.
390.9
21.1
270.6
411.0(e)
22.0(e)
287.0(e)
SOURCE: U. S. Dept. of Commerce.
the
point-
factors.
money—coin
intensive
an
investigation;. of
all
actual
our
additional
an
base
money
by
purchases of gold at $35
ounce.
of Representatives on the resolu-
tion authorizing what would have
revealed
study
thorough
a
the larger banking interests in effective alignment with the Ad-
ministration
_
slight
variation in volume during the
last 20 years. Actual money, that
is, cash as compared to bank deposit credit, can be created by the
gold
supply
of
issue
which
has
had
Federal
may
but
notes
Reserve
be authorized
by the
Federal Reserve Board.
Our
banking system places
credit
Federal
in
the
Reserve
Federal Reserve
money easy or
it
so
easy
today
con-
hands
of
authorities.
Board
can
the
The
make
tight. We have had
Joins Lehman Staff
111. — Alexander E.
Kleine has joined the staff of Leh¬
man Brothers, 231 South La Salle_
CHICAGO,
Street.
-BOSTON,
extraor-
credit system,
but there is danger in assuming
efficient
of the economv
be
a
of
medium
safelv
met
is
There
credit.
exchange
only by
can
tion, 79 Milk Street.
great danger in
&
Sears
members
Boston
Mass.
is
Stock
—
nov/
Exchanges.
Two With
Smith, La Hue
(Special to The Financial Chronicle)
ST.
PAUL,
have
become
Smith,
La
Minn.
Harold
and
Degen
—
Harley A.
S.
Wippman
affiliated with
Hue
&
Co.,
Pioneer
Building.
ply?
crux
of this whole monetary
Administrations.
volume
The surge of prosperity that followed the election of 1936 fright-
We have a banking and currency
jmstrnm "-Inch involves the possi-
ened
bili.t" of almost
period, just as these powers were
Richard A.
with Draper,
Co., 50 Congress Street,
of the New York and
BOSTON,
Krawczyk
and credit problem
monetary powers of that
Sears
With Draper,
(Special to The Financial .Chronicle)
cash volume.
experiments with this ppwer under
both Democratic and Republican
our
William J.
extending
If credit alone is sufficient, why
have actual cash? If actual cash is
essential to safety, why not have
provision for an ample cash supThe
—
is now affiliated
with Clayton Securities Corpora¬
overlooking the need for the ex-
jn the
Mass.
Sees.
Chronicle)
Jr.
Anderson,
essential rela-
We have developed an
for
■
(Special to The Financial
to do so much business
may be danger
that the demands
:
Joins Clayton
a
tions of cash and credit,
dinarily
Chronicle)
(Special to The Financial
credit that there
tension of the
trol of the volume of both money
and
is
Credit
on
with
231
South La Salle Street.
than superficial study,
more
has,become connected
Higginson Corporation,
sello
Lee
to, prevent
forces
0f overlooking the
■
Gold production has declined in
recent
years
and
our
Treasury
CHICAGO, 111.—Elmer L. Car-
an adequate study obviously has
increased. The vote in the House
been
Chronicle)
(Special to The Financial
The pressure to prevent
much more
powerful factor in current ecopands, the load that must be car-gnomic activities than is cash,
ried by the medium of exchange Credit must necessarily be an imcontinually increases. We may in- portaiit element." We have found
254.4
0.47(e)
1956(e)
16.4
0.48
__
360.7
from
and make up
206.1
18.7
345.4
0.48
1954_
1955—
22.1
328.2
0.49
___
_
285.1
0.50
1950
1951
materially
eased
With Lee Higginson
months
of view of those who really want
58.3
1937
three
was
experts add
time deposits to the money supply
crease
1933-
it
ago. The pressure for a thorough
study of our monetary system has
currency—slightly more than
$30 billion. As the economy ex-
Billions of Dollars-
1933
Dollar
than
eneci
and
During the Life Span of Fundamental Investors, Inc.
Joins Blair & Co.
silver
and
We have in actual
ENVIRONMENT
Obviously the stage is being set
The copper,
coin are real for a new era of expansion ad(Special to The Financial Chronicle)
money. The Treasury and Federal
justed to another advance in the
CHICAGO, 111.—Jerome S. Sloan
Reserve notes are also real money, cost of money. Our economy is so
We have a relatively small amount vigorous, our powers of produc- has become connected with Blair
Co.
Incorporated, 105 South
of the old greenbacks still out- tion so great, and our demand for &
standing against which the Treas- an increasingly rising standard of La Salle Street.
ury
holds an ample reserve in living so insistent that great ingold, though there is now no ob- dustrial and commercial activity
With E. F. Hutton Co.
ligation to redeem a dollar of this is practicable within the frame of
(Special to The Financial Chronicle)
currency in gold.
,
the current money market. This
CHICAGO, 111; — Konstantin S.
Some of the money experts add vfloes - not
mean,
however;, that
to these items of "colfl and cur- money rates can go on up and up Zotos is now with E. F. Hutton &
rency," bank demand deposits. An and uo without serious economic Company, Board of Trade Bldg.
overwhelming proportion of our consequences,
daily commercial transactions is
The country is much less frightnickel,
their table of money
supply to consist of coin and curtion at all times.
from $70.4 billion to $287 billion. rency, bank demand deposits, and
bank time deposits. All of these
Dollar Change by Legislative Fiat
Price Adjustments
items now approximate $190-200
There has been no general recThe statistical dollar movement
billion. In other words, if we inognition of the fact that the actual from 1933 to 1956 entirely ignores elude bank time
deposits, our total
value of the dollar was changed the actual change in the gold conmoney supply approximates $190by legislation and executive ac- tent of the monetary unit. When
$200 billion.
•
ment
of
fear
much
was
conditions
economic
the
to
inflation,
in his right mind would
of even intimating
,,
gold
statistical
from
other
some
we
declined from 93 cents to 47 cents,
,•
in
at
of the table under consider-
In the
ounce.
change
of
$20
value.
find that the gross national production of $56 billion in
1933 had grown to $90.8 billion
by 1937, but dropped to $85.2 bil¬
ation,
lion
The 1933 dollar represented gold
look
we
umns
of these different periods.
at
statistical
in
During this time we also have had
a
constantly expanding economy.
be
in 1937-38.
$56 billion. Mr. Eisenhower is asking for a budget for fiscal 1957-58
nearly 25% greater, as measured
in dollars, than the gross national
"coin and currency."
the dollar constantly
on
declined
has
com¬
as
1939, where it re-
cents in
93
By 1940 economic recovery had
gained a new impetus and from
Actually, the ingenuity of man
has not yet devised any means by
any
reflected the actual mone¬
progress
mained for two years,
^
at
repre¬
some
to
we
should get rid of it.
lar
cents in 1937
to 91
1933
authorities checked these prices of
readjustment and raised the statistical value of the dollar back
inflation and that inflation
very
statistical
this
in
(Wis.) Bds. Offered
though not so drastic as the effect on its bid of 99.10%.
The proceeds from the sale of
In 1937 our economy
was only beginning to recover the bonds will be used in the
from the depression of the early company's construction program.
The bonds will be redeemable
'thirties. By 1953 we had accomplished a reconstruction that had at the option of the company at
great powers of resistance. There prices ranging from 104%%;. to
ernment's take j from an economy
a gross
national product of
with
man
decline
tary change that had been made.
The 1937 scare of the monetary
100
large group of econotell you that this dif-
may
almost
means
dollar
the
and
be
to
as
toward the
readjustment of normal factors in
price determination and by no
table,
worth
in
comparison
sented
below, shows
cents
so
value of the dollar from 100 cents
in
ques¬
tion.
Stewart
imbalance makes the
illogical as a basis
gross
The
might be made
to
and
fantastic.
an-
that
swers
balance
in
not
were
dollar
1933
These
general price level.
the
in
a
which
its
have
recent
a
was
the new gold
predecessor, there would
been a corresponding change
than
billion dollars,
in
dollar
the
of
making
dollar worth 75% more in gold
approximating in value a
I.
content
of
determination
changed,
funds
of
total
Char2es
1.933 to
enter into
prices had
in normal balance when the
If all factors that
1933.
the
47 cents?
or
by economic
movements in the period
dollar worth 100 cents
a
In 1953 there was again fear
Lexington, Kentucky
that prosperity had become dan- May 16,1957.
gerous unless some way could be
found to check it. The Treasury
the demand.
The only limit on sold a 30-year billion-dollar bond
demand is the power to buy, and
issue at 3V4%.
Many men well
the power to buy depends upon informed as to the money market
the equitable distribution of the at that time have no doubt that if
An underwriting group headed
gross national product.
It is pos- this issue had been offered at
sible to check this demand to a 2%%, it would have been over¬ by Halsey, Stuart & Co. Inc. yes¬
subscribed.
dangerous extent in an economy
terday (June 5) offered $10,000,With specie payment obviously O'OO of Northern States Power Co.
in which credit is out of balance
at an end indefinitely, tight money (Wisconsin) 4%% first mortgage
with cash.
When Mr. Hoover was preparing assumed
the old role of hard bonds, due June 1, 1987, at 100%
his last budget for fiscal 1933-34, money as the only sound money, and accrued interest.
The bonds
his source of income was the govIn 1953 the effect was similar, were awarded to the group June 4
Go.
of expansion.
rather than
tion
Financial
Chronicle:
Co.
Bldg.
206-207 Central Bank
Northern States Power
be liqui¬
Editor. Commercial and
Treasury Long-Term Issues
compared with the demand of
1923-29, but the supply has increased in relative proportion to
and price
level, and of the prospect for new era
Berwyn T. Moore &
as
may
that it
Manager
1933.
demand has been, to some
Provides analysis of gold devaluation
only when there is reasonable prospect
in
rise
Long experience in the investment field and support of Pres.
financial policies prompts writer to present his
views of the current monetary controversy. Writing from Lex¬
Cleveland's
j
upward
have not caused a radical
Cash Money
frightened by what they consid- noring the importance of the fact
that credit is sound only when
ered the combined effect of the
there is the reasonable prospect
election of Mr. Eisenhower in 1952
that it may be liquidated in cash.
and the early suspension of the
We are failing to make ample pro¬
war in Korea that followed. Busivision for real cash as the medium
ness was going so fast in 1937 that
of exchange and depending en¬
frightened monetary authorities
tirely too much on the checkbook.
applied the brakes sharply and
CHARLES I. STEWART
produced the reaction we had in
considered, much of what
inflation in prices evap-
orates.
i
1957
Thursday, June 6j
..
(2634)
appears to lie
relationship between credit
and
expansion.
actual
cash
Percy O. Dorr
Percy O
volume.
unlimited credit
We appear to be ig¬
20
at
the
illness.
Dorr passed away May
of 78 after a short
age
Mr.
Dorr
was
formerly
br>ad of Pelcv O. Dorr & Company
of
Springfield, Mass.
Volume
185
Number 5644... The
Commercial and Financial Chronicle
(2635>
It takes
a
lot
of communication
to
make
a
Between coffee grower, roaster and
your breakfast table
lie thousands of miles of ocean and mountain terrain
...
v
The
AC&R,
an
associate of International
Telephone and
r
commerce
are
speeded by these communication "lifelines."
< Since the first cables
were
laid
...
more
than three-
quarters of a century ago...
coffee is made of submarine cable,
«
of coffee.,,
East. The movements of coffee, together with other vital
and shipping instructions.
pulsing thread that "delivers" your pound of
radiotelegraph, and
ship-to-shore radio —networks of modern communication
operated by American Cable & Radio Corporation,
through the cooperation and farsightedness of our goodneighbor governments in the coffee lands.
cup
commodities and thousands of items in
and thousands of words of business transactions,
market reports
good
•
AC&R has contributed to
the economic growth of many lands. Through its subsidiaries, Commercial Cable Company, Mackay Radio,
and All America Cables and Radio, Inc., backed by the
world-wide manufacturing and research facilities of
IT&T, it offers the finest in international communication
services.
,
Telegraph Corporation, is the largest American-owned
international
telegraph system. It provides direct cable
and
radiotelegraph circuits linking the United States
and the
principal countries of Central, South America
and the West Indies, Europe, Africa, the Middle and Far
INTERNATIONAL TELEPHONE AND TELEGRAPH CORPORATION, 67 Broad Street, New Ytfrk 4, N.Y.
For further information address American Cable & Radio
Corporation, 67 Broad Street, New York 4, N. Y*
1
23
24
The-Commercial and Financial Chronicle...
X2636)
Continued
from
3
page
Thursday, June 6. 1957
investment
our
government
plete
Bank and Insurance Stocks
E
By ARTHUR B. WALLACE
Tl\is Week
Besides
—
from
invest¬
ments, the industry reports in its
annual material its gains or (loss¬
es) from investments other than
the income. Essentially, this con¬
sists of realized gains or losses on
assets sold during the period re¬
ported,
plus
the
mark-up
of
owned investments, usually to the
market
income
After
to conventional
or
the
bull
1955
values.
in
market
equities had enabled the compan¬
ies to pile up very large increases
in their equity valuations,
1956
made a showing that fell far short
of being commendatory.
Casualty companies, especially,
showed
quitje poorly in most
up
The
cases.
reason
for this
is that
of
nature
quires
their
they
that
business
carry
re¬
much
a
bigger proportion of their assets
in bonds than is the
fire units.
with the
case
different
way, the casualties deal in risks
applicable to the human body,
Or, put in
a
whereas the fires deal in risks
re¬
lating to property. It is relatively
easy for a fire company adjuster
to
arrive at a loss figure in a
claim for fire
extended
or
cover¬
a
An
excellent
$17,111
8,490
47,546
Fidelity & Deposit—-—3,066
Fidelity Phenix
46,165
$5,676
—4,845
19,400
Fire.
3,142
Aetna Insurance
Association
Fire
National
fire company
nection comes
casualty andresult in this con¬
to
in
us
a
com¬
In
1955 and
1956, Hartford Fire's in¬
vestment gains werp, respectively,
$52,797,000 and $2,627,000.
The
affiliate's for the two years were
$9,536,000 and, in 1956, a loss of
$94p,000.
The bond market, in
other words,.-gave the casualty
the
and
rather hard
time in
unsettling
of
the
high grade <bond list thus far in
Among the
8,447
3,269
11,367
12,260
12,530
228
General Reinsurance —3,530
1,370
1,309
3,240
1,745
468
Continental
Casualty
Fireman's Fund Ins.,
scored
in
a
1956;
more
did
whether fire
Amsterdam
results
were
alongside
1,974
Reinsurance
2,286
American
Surety
Bankers
&
369
Haven
Insurance
Federal
150
664
5,375
Insurance
-—.—
7,908
1.518
13,328
—6,598
2,733
1.005
Fire
52,797
Insurance
31,507
2,627
5,060
19,259
Firemen's
Insurance
Hanover
Hartford
——
Insurance
Home
Am.
64,819
Casualty
Bonding—
Maryland
5,619
1,168
3,150
3,194
1,406
665
of
Co.
Insurance
N,
Massachusetts
mew
67
1,068
922
....
Shippers
Boston
lire.—
Hampshire
River
,—
Fire
Washington—
United States Fid. & Gty.
Fire......
States
Westchester
Fire
——
130
—-561
signs.
But
casualty, the 1956
poor
for
when set
1955
deed, 1954. Those two
in¬
or,
years were,
however, is hot always
happehs. Today,' with the
civilian
economy
operating
at
nearly
full
capacity,
employment and, under
of
shortages, we find the govern¬
actually compounding our
problems by stepping up expendi¬
tures. Federal expenditures during
ment
"
,
2,796
coming fiscal (iSyear will ap¬
proach
the
peace-time
record
established in
1953, and state and
government
expenditures
similarly rise—and all this
while
the
private
economy
is
local
will
straining for labor and materials.
an
175
1.749
702
after the
Investment
Moody's
Invest¬
Secretary of
Bishop Securities, Ltd., a subsidi¬
ary of Bishop Trust Co.
was
Walston's Honolulu office is the
51st
office
in
a
stretches from
chain
Europe
that
now
to Hawaii.
It is the only New York Stock Ex¬
change member firm to be both
in Europe, the continental United
States, and Hawaii.
Walston's
Honolulu
office,
con¬
for most companies, record
years,
and it is
improbable that
nected to the mainland by Radio-
will
much
in
duplicated,
short
of
a
stronger inflationary trend
values
than
is
now
being
ex¬
perienced.
The
tabulation
gives "other" investment gains
losses for 1956, with 1955 for
The data
are
companies only where
the
dams
and
which
such
invodved,
excepting
only
is
Glens
the
of
river
improvements
lavish
for
appropriations
now?
them
need
we
Is
it
es¬
mad(e at the
very time when
nor materials
available, and when
the struggle to get them serves
only to bid up prices and in¬
crease inflationary pressures?
neither
manpower
readily
are
Certainly
wonder at the
one can
wisdom involved. In
York
recent New
a
concerning
hearing
pro¬
a
money
had been appropriated for
There have been repeated in¬
it.
improvement
sential.
The
Letters, plus weekly Mar¬
and
analysis on
individual securities.
SAN
McMicking & Co.
FRANCISCO, Calif.—The
firm name of Mallen, McMicking
& Long, 100 Bush Street, has been
changed to McMicking & Co.
in
the
of
880,000
;
ing traditionally
tion
the
with
harbors
some
state
in
occurs
Increased
Housing
Starts
So
connec¬
and
and
Only active interest and watch¬
on the part of all citizens
fulness
lead the Federal
can
to
Government
wisely and
at
strategic times.
And public
alertness and pressure can help
appropriate
money
loans or grants comes out of our
short supply of domestic capital —
for this
and
reason
loan
1
contemshould
be
any
grant
or
V
considered not only in the light of
what good it may do
abroad, but
also in the light of its true cost in
terms
of
tion.
domestic capital deple¬
can't overlook the fact
We
that what
ing
doing is export¬
are
we
real
well
labor
and
materials
as
capital at a time when we
short on all three. Fortunately
are
as
for Pan American
been
people,
than
more
headed
about
and
Our
loans
as
hard-
this hemi¬
in
result,
a
J
have
we
usually
expenditures in
can
believe
shortage
will
approach
one
housing starts for the full
we
million
1957.
Based
which
decline
there
have
made
at
number
a
of
that
and
be
may
this
later
year
mild recovery in
a
Housing
hard
has
our
ex¬
through
maximums placed
VA
contract
caused the
able
artificial
FHA
and
rates,
has
on
interest
supply of
money
avail¬
these types of mortgages
drastically curtailed. Hous¬
ing
output
has
effectively
had
been
if
as
the
lowered
as
government
frozen
item
wages, or any other
cost, in the building in¬
of
The
dustry.
FHA
5% maximum
new
on
while it is still
below the free market rate, will
provide at least a partial remedy
to repair the legislative discrimi¬
mortgages,
which
nation
housing.
existed
has
Housing
against
starts
under
conventional
The
must
to
due to
a
power.
have
we
ever
ex¬
This is partially
growing shortage of man¬
The shortage of engineers
come
J—
It is
the
-
•
"f
money
money is
a
added, it simply becomes
powerful factor in inflation and
are
we
off than
worse
heart
of
the
Federal
before.
f
At
present
tight
policy of the
money market is the
Reserve to hold
back
the
t
which checks
important inflationary force.
As
long as capital requirements
remain high, money should
get
looser only as savings increase.
1
creation
of
money,
this
•<
.
i
-
/
,
Unless
savings are stepped up
along the line, however, it is
all
not at
all
that
certain
.
"
get
can
we
the funds necessary to do all the
jobs that should be done here and
abroad.
To the extent that
short of funds; we will
we
|
are
encourage)'.%%
bidding for the available capital* no
This will not only increase inter- ' i
est
rates
will
but
irresistible
create
ation of new money
plicate the tasks of
everyone.
for
''^Step?fo.-4'VrWe
'
'
for
re-
r
from
source
is
*%
com-'
A-
should" campaign
available
taxes
;'t
ere-
duced taxes.
One
hi
almost
the
and will
pressure
which
savings
addi-
tz
could—-*
i
through tax reduction, but
cannot
reduced
be
the
perienced before.
f
:
supply to keep pace with the' H
growing economy, but if too much .■>
capital.
of the sort that
is
the years we must
over
sufficient economies
The need for capital in the dec¬
to come will dwarf anything
it
can
need
we
relieve the shortage of investment
ade
domestic
it.
expansion in
an
come
saving
encourage
♦
but
our
shorter,
money
tional
We
makes
still
true that
have
in the comparable months of 1956.
Step No. 3
It
only from personal savings.
loans, which reflect
the free market rate, reached al-„
most exactly the same total in the
first three months Of this year as
'
Ameri-
are
usually worth
for
be
to
the
Pan
generally sound
productive for everyone con¬
cerned.
the
been
particularly
by the general scarcity
hit
countries
and
extensive
upon
we
over
residential construction.
to
extent with farm relief bills.
supply of capital as
private expenditures.
that goes abroad in
as
money
steady and persistent a de¬
cline would suggest that housing
might decline still further; but I
es¬
rivers
annual
appropriations,
-
is
' '
de¬
perience here has been excellent.
type of think¬
same
The
capital ' picture:
appropriations
sphere,
low
-.7
Sees
secured; but the question is:
were
government
possibility
are
made
in
eliminate any
to
deficit
of
unless^ii
v
i
financing. 'Zii
Moreover, the tax reduction would
fruitless unless people
prove
this
put
savings rather
than into added expenditures.
It
will be difficult to cut taxes, and
into
money
cj
is well publicized; it is less wellknown that there are now more
difficult to make
keep appropriated funds from be¬
white collar workers than
ing
workers, and white collar workers
instead of being used to contribute
^
further to inflation.
But even if^p
misused
simply
used
or
needlessly
they
because
avail¬
are
able.
When
the
No. 2
already at a premium. Before
long, factory workers also will be
government
regulations,
or
even
if
estab¬
they create temporary dif¬
ficulties in
our
Federal
certain
tarded
a
the
caused
re¬
,
It has
portant capital expenditures.
The
where
vate
it
is
my
a
Yet
mind
sound
Reserve
there
but
as
is
ous
is
that
which
ably
this
have
been
good
I
infla¬
had
effects.
seri¬
Inflation
One
Enemy.
yet, and any meas¬
control it is prob¬
think
the
factories
or
and
offices
enced
is
it
anything
by American industry,
the
price
maintain
tion
for
experi¬
ever
in
the
have to
we
but
pay
to
accelera¬
If it weren't
necessary
production.
the
to
your
worst
savings
capital
^
supply,
-£
sav-
projected
some
bv
the
^
be
i
special emphasis
for saving, not spend-
xt
should
Government
with
the need
on
reduction
tax
Federal
involved, I think
could expect to influence the
the
.x
money
t
situation.
;
Previous to any tax
1;
reduction, I
would hope that the Advertising
t
similar oreaniza-
?
Council
tion
some
or
would
set
effective
J
campaign to educate peonle to the
influence that additional savings
'•£
-t
and costs would be
long-range prosperity,
A tax reduction would benefit all
five
of
4
and
new and
improved plant
equipment installed in indus¬
try since World War II, we would
already be 15 million men short,
times
approximately
higher than they are.
The projected capital expenditures
by
industry
all
records—but
beginning.
profits
better
in
As
1957 will- shatter
this is only the
sales
decrease,
the
need
for
productivity will become
critical—and
this
means
have
can
vast
in¬
vestments. There is
no
alternative.
and
Materials
in¬
The
ernment
money
expended
projects
also
for
gov¬
influences
an
j
\
savings to
remedy our depleted capital would
multiply the benefit.
us,
and
using
the
I
5
■
Step No.
We
should
of increased
There
into
make
shares
consumer
translate
has
up
on
and
mount
Exporting Labor
measure.
If it is any comfort
dustry,
any¬
has
surge of
Number
that helps
a
a
could
our
It is not licked
ure
as
question in
policy and the Federal
right in adopting it.
long-range
still
much
no
was
It has prevented
tion
pri¬
construction, has
suffered at least
one.
especially
concerned ^with
residential
for
equip¬
other¬
we
It has
industry,
ment, whether automatic
wise,
and
new
and
exceeds
the
im¬
estate
plant
ing,
some
real
is
problem
installation of such equipment far
along
of
this
efficient
where
tax
of it will surely
be saved, and the saved proportion 4*
is likely to increase.
And we are -p
not without ammunition to help
5
direct the use of this money. If.a
tight
my own.
deferment
to
and
The main solu¬
sure
the
substantial part of the tax
ing is spent,
causing
is
growth of many insti¬
tutions, including
tion
more
when
needed.
a
into
announced
Reserve's
in point.
case
are
fed
are
everywhere to step up productiv¬
ity. The expense involved in the
businesses.
own
policy, which
hardships all
money
line, is
should comply
we
to find
they
lishes monetary and fiscal policies
factory
are
difficult
Step
The
com¬
fleet
a
well equipped
Organization, daily
Summaries
Now
eight-year
an
starts.
Prudential
some
harbor
and
of
or
for parent
a
services
Market
ket
accompanying
parison.
vast
of
years
designed to estimate the
Certainly the nation needs high¬
probable future demand for new
ways,
and schools, and hospitals
and
civic
improvements of all homes, we believe the nation has
about reached the end of the long
sorts; it may even need some of'
teletype, will offer their Hawaiian
Research
annual
almost 1,500,000.
By the
1955, this rate had fallen
to 1,200,000 and by the end of
1956- it had dropped to 1,000,000.
In March, 1957, the rate reached
end
studies
Spending
Now
clients fast execution of orders, the
they
be
adjusted
of
rate
year
Postponing Federal
Bishop Securities Co.,< Ltd.' (sub¬ stances in which states have has¬
sidiary of/Bishop Trust Co.) will tened to seek out logical high¬
be resident manager.
Mr. Botts,, ways to spend money on, in order,
has spent 12 years in the securities to get their share of the govern¬
business
(starting with a New ment appropriation, rather than
York Stock Exchange Member in ascertain to what extent highway
was
seasonally
a
ernment,
that Richard M.
formerly Secretary of
with
declining moi'e or less stead¬
ily for two full years. At the end
of 1954, houses we're being started
of funds because the Federal Gov¬
announces
immediately
been
the
jected limited access highway, a
representative of the state high¬
a Honolulu office at 119 Merchant
way
department
explained
to
Street.
local objectors that whether they
Daniel
J.
Cullen,
Executive liked it or not the highway had
Vice-President of Walston & Co., to be built because the Federal
also
ing starts in the United States has
at
surely
plated
•
.
be
Opens in Honolulu
Honolulu
'
As you know, the rate of hous¬
sential that all these expenditures
HONOLULU, Hawaii — Walston
& Co., Inc., members of the New
York Stock Exchange, has opened
Botis,
is concerned.
243
Walston & Go., Inc.
Inc.,
far as the effect of tight
in the real estate business
as
money
do
—-1,072
8,118
5,784
with
full
handicap
a
passed
926
977
recently,
units
This,
629
New
other proj¬
with the ci¬
and
compete
what
—-330
709
American
Ins.,
Service in Wall Street, and
quite
those
Cas,„__-
Standard Accident
Security
until
minus
or
—
ment
fire
fairly large proportion
show
6,022
4.082
1,989
Aasur
Fire
few
of casualty affiliates in fleet set¬
ups
4,474
——
Fire
Merchants
National
Ins
—
actively traded
loss in investment result
a
Falls
Glens
Counselor
stocks,
1,831
615
Insurance
American
war),
1957 continues.
insurance
2,932
5,883
2,035
a
bonds than does the Fire unit.
1956,
3,1025
13,112
Insurance
Springfield Fir. & Mar—
American
Equitable
United
the
325
26,0t>5
—2,278
4,620
201
427
Providence
agement; but the Accident & In¬
demnity company has a greater
proportion
of
its
portfolio
in
a
—
Insurance
Phoenix
Pacific
parison of Hartford Fire and its
wholly owned affiliate, Hartford
Accident & Indemnity. These two
enjoy the same outstanding man¬
companies
Union
Northern
us
of
1,253
22,8'76
—.
Insurance
Great American Ins
be
to
case
example
difference between
a
for, let
so
compensation
adjusted.
say,
1956
Casualty —:
Aetna
which
for
economy
for
labor
and
materials, and which may not be
immediately essential.'
"
*
1955
Continental
particularly
—
vilian
INVESTMENT GAINS
omitted)
ects
Prolong Probity
and reduce
resources
highways, dams,
is on a con¬
n
<000
its
expenditures
basis.
solidated
North
losses; far less
age
material
its
Falls;
New
the
husbapd
Insurance Stocks
fire-casualty insurance
company
Seven Ways to
our
is
a
in
5
sure
that
the
productivity.
growing tendency to
productivity
wages and added
savings
increased
fho
~
in
dividends to stockholders.
onrl
the
benefits
In the
uTo<JG-.Gqrnprc
anH
*
Volume
Number 5644
185
The
...
Commercial and Financial Chronicle
(2637)
the
stockholders
off
if
would
increases
in
better
be
productivity
sary
is
measure
certain
inconvenience
to
and
of
our
fairly
recent
economic
practices, such as cost-of-living
wage contracts, the penchant for
widespread government projects,
cause
difficulty
prices. Increased productivity and
prices have been the secret
somewhere along the line. Pres¬
sure groups
will be organized to
protest "unfair" treatment; and
and the
of
Senators
ness
used
were
often
more
lower
to
lower
the
of
success
free
the
enter¬
and
hear
to
Congressmen
about
are
prise system. We have built our
remarkably high standard of liv¬
sure
ing,
more
lation to force the Administration
more
to
have made
we
and
more
things available to
and
more
vestigations,
people for less and less money, us to
by working constantly towards —and
lower prices.
In recent years, sound
however,
this
has
become
in¬ cism.
creasingly difficult to do.
take-home
as
face
and
the
groups
criti¬
and
fringe
need of
and
declaring
that
the managements might have de¬
clared higher dividends, and pro¬
posing
that a
more
dividend-
in
of
all
prolonging
picture
in
inflation
has
living cost
month
come
during the past
con¬
after
seven con¬
prosperity
ple who can afford it least. It
cripples the people who are de¬
the
is
peo¬
continuously, intelligently,
fighting infla¬
pendent
aggressively
whose
upon fixed
incomes
dependable allotment
inherent
in
our
system.
time
comes
to
use
entire sys¬
our
of
out
gear; it disturbs our
balance and proportion.
of
sense
Prudential, for instance, has
doubled! its assets in 10 years,
which would
able
purchasing
to be remark¬
seem
but
progress;
power,
in
terms
of
ad¬
have
indeed.
Our
we
vanced
our
to¬
way
do
ber this: until
flation
better.
.:•
ardy.
Let's
only
I
had
need
arose
been
—
•
be
alert
as
as
domestic
possible
in
the
prosperity,
hemisphere
but
and
;
The West cannot afford to be
weakened
at
this
time
by
any
reverse.
With Reynolds & Co.
have
taken
taken
in¬
world peace itself depend upon us.
! '■ Conclusion
steps
an
the
while the pressure continues. Not
kind of economic
the
win
our
prosperity—
economy—is in jeop-
operation is real indeed.
If
do
we
future,.
and
Remem¬
battle,
entire
our
In the
opportunity
unity
of
per¬
an
very
little nearly $13 billion asset figure is
about 50 % an economic delusion
—but
the increase in costs of
here
savings and thereby reduces
have
obligation to
—
It cuts into personal
along
haltingly and late.
we
after month.
Several
it
Inflation throws
dollars becomes less useful month
tendency toward inflation is
further
winning the inflation bat¬
But such steps often are taken
indicated
when
the
time
and
in
without reservation—we would be
BROOKLYN, N. Y.
—
Orin R.Dudley Jr. is now associated with
Reynolds & Co., 166 Montague
Street, as an account executive.
element in the economic
that
has
been
not
effec¬
tively organized is the consumer,
as a
result, the consumer has
and
benefited the least.
Increased
should
attention
be
devoted toward ensuring that the
consumer will share, along with
labor and the
the
built-in
are
Inflation hits hardest the
involved
factors
management be installed.
The only
not
secutive months.
tion.
A
is
limited to lower income
—
which
Step No. 7
important
indicate
tributed to the rise in
(
,
.
managements
in
stand
worth when
it.
any¬
promoters. All of them have
The final, and possibly the most
Organized blocks of
stockholders
have
overthrown
minded
the government
politicians—to take a
the
a dollar sqved may
buy far less than a dollar's
The
reports
any sense
encourage
larger,
a
benefits.
by
to
up
buy
much
tle.
tem
month
productivity
wages
is
It
willing¬
discourages
It
25
ward
recent
legis¬
prepare
field.
to
consumers
security.
well
thing and everything on the in¬
stallment plan—a tendency which
Organ¬
ized labor has demanded
share of the fruits of
and
its
reverse
it, launch in¬
almost universal
of
sonal
thrift because
'.
of
owners
fruits
of
liltOWING with LATH AMERICA
the world's fastest
business,
advancing
our
growing
;
area
productivity.
Step No. 6
Don't
let
One
tne
boom
top
Latin America is
out.
experiencing
economic growth
an
prosperity in the
past often has led to a depression
period is because people have as¬
which exceeds that of
any
sumed that the best thing to do is
people of Latin America and
nations, the opportunities they offer for agricul¬
reason
to
exploit prosperity
here, because sooner
will
be
little
As
gone.
while
it's
later
or
the world. The
tural and industrial
it
result, often
a
effort is made to control
level off the forces of
ploiters encourages the
use
one
reason
&
ent
on
from
frequently to taper off
the
pressures
as
fast
as
they
mounted to the danger point.
In
recent times, when the credit bal¬
loon swelled to frightening pro¬
portions, steps were taken to dis¬
forced
excessive
strain
relieve
to
by
the
making
it
harder to get money for construc¬
tion.
On the other hand, there
have
been
times
not utilized
at
as
when
Earnings
per
Common
^
Dividends
Instilled Capacity
Electricity Input
controls
*
bile sales in
more
cars
ment
ably
the
and
1955
problems
wound
intervening
tween
their
with
the
own
up
ran
which
even¬
with
Congress
regulations be¬
manufacturers
agents.
The
Power
that
is
ested
tion
parties
to
the
ernment
effort,
most
should
should
or
t
,
share*
.
.
.
.
Kw
.
.
.
«
,
-
contribute not
Latin
$ .75
.
2,771,600
2,643,400
1,316,100
,
.
to
our
available
are
2
RECTOR
cau¬
if the
to
me
that
a
know
how to taper off a boom and
keep
it from exploding in our faces but
•—as
I
said
earlier—every
program
■
will < *
j:
only to thed'uture^developmenLof •»';
but "will
produce
corresponding"
security holders.
share.
■V
request to
the secretary,
ij % -T
Utility services, principally electric,
eleven
Latin-American
NEW
•
are
YORK
6,
N.
.
Y.
supplied in
Republics to 21,000,000
people by the American & Foreign Power System.
further
we
forward-looking
31,100
with
seems
America
benefits to its
monetary and fiscal
policies, to deflect the forces lead¬
ing to a bust.
It
.
years.
■
gov¬
no
that is
7,188,700
32,400
on
STREET
inter¬
throw
make
one
1,222,800
7,891,900
.
—
of American & Foreign Power is;
confident that this
$1.37v';.'
#■>
$ .80
,
—
$1.63
.
.
Mkwh
r
•
an even greater
for the future
'
$11,900,000 -49,910,00a
COMPA|gfriNC.
and
difficult
if all of the
winds;
.
foreigIIbower
automo¬
This could happen to
national boom
ca¬
Quarterly dividend rate, applicable to the second
Company
industry topped out its pri¬
vate boom, and reaped instability,
government intervention, strained
relationships within its distribut¬
ing system, and a future sales po¬
tential
years,
generating
v
Copies of the 1956 Annual Report of American & Foreign
tive
predict.
c
comfort¬
companies
into a tremendous in¬
ventory problem, and surfeited
the car-buying market so badlythat it has seriously crippled sales
ever
since.
A
less
aggressively
easy money policy in 1954 and an
earlier tightening in 1955 could
have provided a stable and ac¬
celerating car market; instead of
that, the automotive industry suf¬
fered a setback, and created dis¬
tually
1955
with
headlong
tribution
new
the company is mapping
during the next five
time-pay¬
more
The
lion
sell¬
nation
debt than it could
absorb.
Report
of automo¬
The
1955.
flooded
race
$400 mil¬
expected to involve the expenditure of $500 mil-
quarter of 1957, increased from 20<f to 25<f
instance, the overly easy
money policy of 1954 led directly
ing
—
..
per
.
.
.
...
Regular Employees
consequence.
over-extension
share
Electric Customers
For
to the
over
during the past 10
have
we
effective
facilities
The management
disposal, and have suffered
our
a
the
1956 Annual
Corporate Net Income
prices sky-high,
taken
our
1956
■
were
new
construction program
^HIGHLIGHTS
been taken
steps
11
pacity. Moreover, to meet the growing demand for
pres¬
courage over-extension of credit.
When- the
bidding for building
with the development of the
challenge to the
to
period has gone
long, is because steps have
materials
for
power,
our
pace
including 500,000 kilowatts of
prosperous
so
keep
Foreign Power System has spent
lion
or
a constant
2.-3"
Latin-American countries it serves, the American
itself up.
Certainly
To
development, and the need for
taking place present
private business
to
of the various
resources
ex¬
boom
top out—to
enterprise in the United States.
capital to finance the tremendous expansion that is
prosperity.
If anything, the action of the
diversity of
other major region of
neces¬
Operating Subsidiaries in
ARGENTINA
•
ECUADOR
GUATEMALA
•
BRAZIL
•
CHILE
•
•
COLOMBIA
MEXICO
•
•
COSTA RICA
PANAMA
•
•
CUBA^
VENEZUELA
„
v-
The Commercial and
26
.Thursday, June 6, 1957
Financial Chronicle
(2638)
expected to follow suit. England,
which in its prime was a gold
THE EDITOR:
TO
LETTER
standard country,
Gold Standard to Provide Full
inadequate
sense
con¬
a
Convertibility through restora¬
of
the
international
gold
International
even
Trade
Consultant
Drewville and Brimstone
S Roads, Carmel, New Yorik
milligrams could be May 27, 1957.
franc for 203
Continued
ing the reactor, or, in the case of
water - moderated
reactors, with
such
from page 11
of
commerce
at
Naples,
Is There
on
vital
required
explosion.
con-
bomb,
commerce
a
assem-
to
a
do damage
nndpr
principles of private enterprise.
Artificial manipulation of foreign exchange rates through the
stated above, they could
within the installation,
The maximum uncontrolled nuclear energy release in a reactor
as
accident is comparable to the en-
controlled power increase, provid-
ing that several successive stages
safety instrumentation
and
emergency shut-down equipment
should
simultaneously fail to
function,
of
actions
available from chemical rewhich might also be in-
power
rather than help private trade and
volved, and the combined effects
crease
investments 'actually
would not cause significant direct
public damage yby blast beyond'
the boundaries of the plant exelusion area.
be terminated either by the inherent self-stabilizing influence of
International
Monetary
individual efforts
perpetual
Even
discourages
and
makes
for
financing of trade and
investments
the
Fund
by
the
now
governments.
Indian rupee
market is
open
valued
ergy
in
20
at
Radioactive Dispersal
Dangerous
in
the
tion
such
a
the reactor
runaway
and temperature would inuntil the incident would
reactor
of
the
the core during a
of
ing
lived
bomb-type
comparable
be
not
could
duct of world
George F. Bauer
for
blage
in
packed
closely
the
into
cool¬
period
adequate for decay of the short¬
capability; or, in other words, if
reactivity should suddenly mConvertibilcrease. This could happen, for exity through
However, we shall see that an ample, through rapid addition ol
the
interna- uncontrolled nuclear reaction can excess fuel or through sudden retional gold cause accidents in a nuclear pow- moval
of control
buch
standard
is er plant. Although such accidents changes could bring about an un"''blir'ntion
May 23.
major
a
by providing for emergency
Nuclear Power Plants
was
by actual mutilareactor core.
Even
or
with the multiple failure postuiated, the effects of a power ex-
of
a
fission
products — a matter
few hours.
This is accom¬
plished
maintaining
by
a
large
tank of coolant.
The
of a
consequences
be serious,
could
coolant
loss of
but the
requires the occurrence of
unlikely material failure in the
event
an
it
is
worth
21
cents.
A
represent in purchasing power at
time an investment is made and
at
period it
due.
comes
A definite
commitment by a government that
it will make good on its
money
unit
through convertibility into
a definite
quantity of gold would
give much needed incentive to
investments under private initiative in countries where such a
With
emphasized
that
operating reactor could only occur
designed
and
can
if a series of unlikely mis-operations or failures were to take
place. No feature in the design
of a reactor receives more attention than those which are incor-
serious damage to the plant
be
carefully
though
reactors have been
and
will be among the safest of industrial operations, a variety of
operated
accidents
cause
conceivable that
are
the
to
people working in it
though wthout hazard to the publie. There is a public danger only
or
tent reactivity additions.
Two Possible Types of Accidents
policy is put into practice.
Convertibility without fixity of
if the fission
precautions against accidents thus
unchecked
money units in definite quantities
of gold to inspire confidence in
runaway
include
melt-down
or
their
values
oyer short and long
period
range
important
is
to
amputate
member
Definitions
are
limited
to
certain
subject
as
in
of
all too
this
an
its
body,
frequently
features
case
of
of
a
con-
vertibility which involves not exchanges of money units for a short
penod only but also assurance of
satisfactory conversions ye a r s
alter
investment
an
is
made
in
another
country. A commitment
by a government to make good
on demand on its money unit
by
allowing its conversion into a
fixed
quantity of gold provides
important quality of convertibility in its broader and truer
tion
of
products escape. The
careful combinadesign and operating proa
very
•
a
possible
consequence
could
vaporization
of an
be the
of fuel
around the reactor.
It has already
been mentioned
that excessive heating of the re¬
through either nuclear run¬
of
loss
or
away
result in potentially
coolant could
violent chem¬
only as a result of fuel
vaporization, which was previous¬
ly pointed out as being a highly
unlikely event.
likely
Shield
Ruptured
Although the vajor
container is
designed to keep the fission prod¬
ucts
from
the atmosphere even
in1 the event of the
serious in¬
ternal troubles
described above, it
to ask what would
be the expected release of fission
is
important
the
highly unlikely
elements and the release of fission
products
cedure to minimize the possibility of any conceivable accident
products within the reactor vessel,
event
Another
and additional measures to assure
could be the initiation of self-sus-
ing to rupture of both
vessel
and; its vapor
that
if
even
an
should
accident
no matter how remote is
possibility, there would not
be dispersal of the fission prod-
tween
that
in
ucts.
reactors
cated machines and
WOuld
to
types
the
Of
the
in
liauids
reactions
release
and
Various
in
a
accident lead¬
the reactor
container.
accident situa¬
lead to vastly different
possible
tions could
amounts
reactor
of
fission
product
re¬
lease.
thus sub-
that the nuclear and the chemical
such
that
can
these
possible
malfunctionings, only a few could
conceivably lead to release of fission products to the atmosphere,
Among these, a runaway nuclear
of
release could cause much
mechanical violence beyond the
reactor.
It is, therefore, feasible
to
build
a
gas-tight
container
around the reactor and its shielding which will virtually eliminate
energy
resulting
Accidents
in
non¬
rupture of fuel elements
as
meltdown
not in the
of
presence
combusion,
water and without
meltdown
with
or
reaction
between
metal and water, can lead to the
release
of
varying amounts of
non
-
violent
products
with only a
any chance of a fission product
small proportion of the more dan¬
release to the atmosphere if rup- gerous solid materials.
On the
eense.
reaction and a sufficient loss of ture of the reactor itself should other
hand, combustion of metal
Delay is not needed to put an coolant from the core to cause occur,
exposed to air, or violent chemical
international gold standard into meltdown
are
most
prominent.
The possibility of a serious nu- reaction, can lead to substantial
practice. The United States could Let us consider these processes in ciear runaway cannot be corn- dispersal of the fuel, with inclu¬
make the start just as England turn and examine their possible
pietely ruled out, but its occur- sion of up to half of the entire
alone did in the early part of results.
rence
can
be
made
extremely radioactivity in the form of a
1800.
If our government were to
A nuclear runaway would occur - unlikely by careful operating pro- fume or dust.
It is the possibil¬
an
and
a
It could be most serious,
consideration of the con¬
ceivable magnitude of
the disaster
will serve to convince us that our
attention must be turned back to
that a release cannot be al¬
tion
•
released
be
gaseous
would
dust
a
or
a
should
depexid on
their physical state—-on
ticle size, whether the
is
,
atmospnere,
the
to
dispersal
their
"
products
fission
the
If
;
to happen.- :
lowed
the par-;
material
and
fume,
on
the
of the gas released,
them, whether it is a hot
that will rise rapidly as a .
temperature
mass
cloud, or is dispersed cold and at
ground level. Tne dispersal fur¬
ther depends
on
the weather—on
direction and velocity,
on the occurrence of rain, and on *
the existence of a normal tem¬
wind
altitude or of
inversion charac¬
perature lapse with
the temperature
night-time conditions.;
Combinations
of these circum¬
of
stances may
lead to widely diver¬
gent results. A hot release of very
finely divided material on a rain¬
without much wind could
a
rapidly rising cloud
relatively little local
less day
to
lead
does
which
results chiefly in a
addition to the
radioactive
material
already in
the atmosphere. At the other end
of the range of possibilities are
circumstances
leading to wide¬
spread contamination at activity
levels
high
enough to require *
evacuation
of
settlements
and
withdrawal of farm land from use,
with consequent enormous finan¬
cial loss.
Circumstances leading
and
damage
fractional
small
to
le^s, widespread but more con¬
deposition could, pro¬
duce activity levels high enough
to
cause
deaths in
substantial
centrated
from
numbers
before
exposure
received
evacuation would be pos¬
sible.
nuclear
The
first industry
power
field is the
where a careful and
objective evaluation of public risk
been made before the busi¬
ness
has
achieved
commercial
status.
New
and
revolutionary
has
technological developments have
characteristically been introduced
with uninformed and unjustiifed
optimism about safety on the part
the promoters and the users.
of
to protect the
first been imposed
outside the industries them¬
Safety
measures
public
have
from
selves
the
on
basis
of
pressure
the public and from
from
under¬
In many cases ef¬
fective measures have come only
after a series of shocking disas¬
writer groups.
in
ters,
mulative
some instances with cu¬
loss of life, if not prop¬
damage, approaching
possible with nuclear power.
erty
that
For
characteristic of
our
civilization, such as the use
of
automobiles with the atten¬
dant
approximate 40,009 yearly
death toll, our extensive safety
activities
some
violent
of failure
reactor.
and
Such
be-
of
compln-
are
are
reactions
metals
system.
assist
consequence
fission
products,
However, it is highly improbable
lead to shut-down, loss of production for a time, or actual damage
to
certain
the
dispersal
Nuclear
ject
chemical
taining
occur,
possible
public?
teristic
porated to prevent such inadver-
should
would could the effect be on the
the loss of coolant should
not produce effects which would
prevent
containment
of fission
products by a,, gas-tight container
away,
actor
be such a release,
to
were
the
plosive damage, we can recognize
that the potential public hazard
from nuclear power accidents is
it
.
should not avail and
system
there
loop, coupled with the
failure
of
emergency
cooling schemes, or else the -un¬
likely failure of the reactor vessel
itself.
As with a
nuclear run¬
primary
unlikely
danger from direct ex-
no
the
with
cursion would be minimized by ical reactions. Three principal
reactions of this type are: sodium
the inherent stability of the relower valuation for a money unit
actor. This results from changes reacting with air, fuel metal re¬
for private purposes on the
open
in the reactor configuration itself acting with air, and water react¬
market and a higher one for gov- centered
ing with fuel metal.
upon another character- which serve to reduce the reactivernmentally
approved
Most of the possible chemical
applica- istic of nuclear reactions, which ity with rising temperature or
tions surely is prejudicial to in- is that the fission process pro- power thorugh processes such as reactions would be assuredly non¬
dividual enterprises.
duces
large amounts
of radio- physical
expansion or loss of violent and the vapor container
Properly appraised foreign active materials dangerous to hu- moderator. We believe that this would hold the products from dis¬
money units need to be converted
man
life and
health.
A reactorThherent stability can be designed persal. The water-metal reaction,
into U. S. money at the open maryvhiqh has been operating for into most of the reactors now pn- pecujiay. to heterogeneous waterket value; to translate them at Some' time on a single charge of der study.
moderated reactors,, is the only
;J.
y
artificially "higher rates imposed fuel inevitably has produced from
Despite the stability inherent in potentially violent one. It would
by
the
International
Monetary the process of fission itself a large the r°acto-confi«"rat/on. it is still be expected to proceed as a vigor¬
Fund is highly misleading in cal- amount
of such poisonous ma- possible, by sudden large in'tro- ous but incomplete oxidation of
culating foreign assets.
terial, and the public danger is duction of reactivity, to cause a the metal at elevated temper¬
World trade is based on short entirely related to the security of
atures. A violent and more or less
runaway should the safety equipand long ranged credits.
A pri- the material against dispersal suf- ment all fail.
of the metal
Such large, rapid complete reaction
vate
investor., wishes
to
know ficient to cause radiation effects additions
of
reactivity are .not. would require that it be finely
what the foreign money units will upon outsiders.
dispersed.
Such a dispersal is
easily achieved and in a normally
cents, yet the International Fund
insists
1.
the reactor system in the con vie-
of
event
system break, it is pos¬
sible to prevent a fuel meltdown
Any Danger in
and
mention
the
in
cooling
which
of
remains.
water as
Even
r't.ern»tional
Chamber
is
ity that the overheated fuel would
react chemically with air enter¬
tion
standard
is preferable
to other
palliatives discussed at meeting of
Volatile fission prod¬
thereby be released.
the additional possibil¬
could
There
with
Switzerland
and
though the nuclear reaction
has stopped.
ucts
exchangeable for 211 milli-
DM
grams
Chronicle:
y,yy
Could Be Most Serious
.
GEORGE F. BAUER,
long-range commerce and
nations under private enterprise.
Editor, Commercial and Financial
safety.
tainment.
A second
to
is needed to encourage
investments among
gives rise to the concern for public
sterling truly
ception of convertibility as discussed at Italy meeting of
International Chamber of Commerce, holds its application in
fullest
and
by tne provision of adequate con¬
major type of accident
We have examined the nature
make the pound
convertible at 2,488 is the loss of coolant. Such an ac¬ of the reactor system and con¬
cident could result from a break sidered the
processes that could;
milligrams of gold. Other coun¬
in the primary coolant circulating
tries would be encouraged to fol¬
conceivably in combination lead •
low these good examples and real, system or from a rupture of the to the one serious public danger—
reactor vessel itself. Loss of cool¬
an
uncontrolled atmospheric re¬
not fictitious convertibility could
ant would permit the heat from
lease of fission products. If all our again help in sound conduct of
decay of radioactive fission prod¬
world commerce.
precautions and all the natural
ucts to melt the uncooled fuel, and automatic checks built into
possible
it
Convertibility Seen Vital
World Trade Expert, pointing to
Mr. Bauer,
might then find
design for -inherent stability
measures
to
cannot be said even now
brought
have
the
situation
under control.
.
The
causes
of
early
disasters
the meas¬
taken
have been in
in other industries, and
that have finally been
ures
to
control
them,
degree matters that could
have been anticipated by a really
large
thorough and scientific examina¬
tion of the machines that were in
use
and of their operating pro¬
cedures. It is the firm conviction
.
make
1/35
the
of
an
milligrams,
would
be
dollar
ounce
a
redeemable
of
gold
taken.
or
vital
Germany
first
at
889
step
with
if
the
esses
in
neutron-absorbing
the
reactor
denly become
tion
to
the
should
deficient
in
proc-
sud-
rela-
neutron-producing
cedure, by adequate design, by a
multiplicity of control
devices;
and the consequences of such
event
can
be
minimized
by
an
the
though remote, that such a
process could occur and that the
products could be dispersed
ity,
+V.v.«nrtVi
n
nintiiro^
chlolH
u/hlph
of those
lation
of
responsible for the regu¬
nuclear power that the
characteristic of early ex¬
ploitation of other energv sources,
dangers
"lan-lir
inhorpnt
in
tllP
USf*
of
•Volume 185
Number 5644
Commercial and Financial Chronicle
The
...
reactors,
with
can be eliminated by a
careful system of controls and re¬
ing
quirements set up
in
thorough
a
examination
possibilities.
'that
this
the .basis of
on
It is
be
can
conviction
done
statutory
responsibility
without
our
its
important
a
? back
ground of early mishaps.
To bring about effective exam¬
ination,
which
up
•
procedure has
a
requires
In this connection
recognize
states
reactor
a
bodies
-
potential
mal¬
of
functioning. The results of such
analysis are presented to Coipmis-
-
until
explored
possible.
'done
greatest
Experimental
where
•devoted
to
is
work
resolve
is
nuclear design,
the
Attention
to
mechanisms
by which
could
excess
and
in
features
in detail and each
ceivable
all
the
regulatory
the
public
other
forms
potentially
Commission is
are
The
meetings
cials.
A
model
law
with
state
recommended
has
and submitted
to
been
offi¬
uniform
formulated
state
bodies for their consideration.
As
I stated
It
to do the
er
and
thereby bring its advant-.
ages to the
Officers
W. Gordon McCabe, Jr. of J. P.
& Co., Inc., Greenville,
S.
C., was elected President of
_
Stevens
the
Wool
York
Associates
Cotton
the
of
Exchange,
New
Inc.
Elected First Vice-President is W.
Brewster
&
Southworth,
Boston, Mass.
Co.,
of Nichols
Re-elected
of
Irving Weis & Co., New York
City; William G. Wigton of Orvi3
Brothers, New York City; John M.
Williams
(Special
to The Financial
DETROIT, Mich.
is
Hornbiower
Chronicle)
William W.
connected
elected
Weeks, Penobscot
of Merrill
his;
in
Those
Governors
Mr. Romaine formerly
business
•
with
now
&
—
of
investment
own
Springfield, Ohio.
Boston,
Mass. Re¬
elected
Treasurer
is
Bruce; S.
Lachlan, Jr., New York City.
&
are:
to
the
Board
of
Harry B. Anderson
Caires,
Cohan
of
Boston;; B.
&
Harrison
Co.,
Boston;
Royce
failure
is
the
others
were
These
June
new
officials
office
took
5, for
a
AND
BILLIONS OF DOLLARS
The, control system is examined
its
mode
of
manner
sible
of
operation
6
:
and
potential failure. Pos¬
malfunctions
set
are
against
compensating
actions
in
other
parts cf the system, or safety de¬
vices are installed so that an ac¬
cident would
-
a
whole
is
•
a
have to result
series
improbable
events 7 happening together.
An
example of the lengths to which
safety instrumentation is carried
the
device
slight
which
earth
earthquake
an
in
before
major
hits.
mor
.
.
in
the
second
small
tre-
reactors
power
despite
of earthquake
locations and despite the
likelihood
that
structure
a
strong as a reactor
damaged in any case.
In
and
initial
operation
cautious
used.
the
.of
of time
improbability
most
is
down
damaging
; as
-
to
preceding
shuts
This device is installed
large
on
the
•
the
responds
wave
and
the reactor
.
from
of
would
thorough
a
start-up
The
actual
reactor
procedure
performance
under
/operating conditions
be
-
variety of
a
be estab¬
can
lished
by
ingeniously contrived
experimental measurements made
at low power.
.
A program of such
.measurements
.
is
through
gone
during this initial phase to check
the theoretical and design
predic- ,.v
,lions.
This-can
be
done
with"
r
;
i
maximum safety because of the
low
the
and
power
/previously built
ucts in the
up
absence
fission
of
prod¬
core.
/
A program of inspection to as¬
compliance with Commission
/standards is being set up and will
sure
be
,
carefully carried out to assure
continuing
high
standards
of
equipment and operating proce¬
dure.
Changes in
equipment desired
.
ator
thorough-going
the
evaluation
original system.
Experience to Date
The
the
care
has
*
'
safety evident
from
program
freedom
accident
from
experience
in
'
Z '
in
the
given the Commission
fortunate
;
for
nuclear
start
or
by the oper¬
subjected to the
be
must
same
as
procedure
'
a
Upper
reactor
the
Nuclear reactors have been
four
oper¬
ated
since Dec. 2,
1942, with a
safety record far better than that
of
the safest
even
.than
100
reactor
operating
t
industry.
years
experience
<ence
including
experiwith reactors of high power
large inventories of fission
products, wthout a single person¬
al injury and with no
significant
deposition of radioactivity outside
the plant area. There have been a
•few accidents with
experimental
■
.
reactor
with
installations,
the
the
-of
tors, but
not
.
perfect
regularly
even
affect
the
as
record
industry
income
times
farm
income
More
of regular
have been
In 1955 the wages
and salaries of individuals involved
in industrial and commercial work
accumulated,
.and
Midwest
past.
or
was
6 billion dollars
four times the net farm income for that year.
These
figures illustrate how the Upper Midwest—
once considered primarily an agricultural region—has
developed its industrial and business potentials.
The business and industry of the area is
characterized
by
a sound and diversified economy less sensitive to
market fluctuations than other parts of the country.
NSP has grown to keep pace with the
For 23 years we have marked
every
an
Upper Midwest.
increase in
Ask your secretary to write for our annual report
(1956 report available after March 30, 1957).
contrasted
of
operating
safety
reac¬
NORTHERN
STATES
POWER
these accidents did
public.
COMPANY
Minneapolis 2, Minnesota
The | Atomic
fically
Energy Act speci¬
charges the Commission
Serving
a
thriving
area
revenues
year—in 1956 reaching $139 million.
in Minnesota, Wisconsin and the Dakotas with electricity and
gas.
re¬
the
of
Ex¬
Wednesday,
V
(Wages & Salaries)
for
the
re-elected.
term
one-year
office.
COMMERCIAL INCOME
The Probability of An Accident
•
,
Messrs.
of
were
are
INDUSTRIAL
of
members
tiring Board who
_
for
New
Florin, Rudd and Weis, all of the
I"
its consequences.
Co.,
exception
con¬
examined
&
Wright Bros., Inc., Boston.
With
Lynch, Pierce, Fenner
Cohan
of
City; and Gilbert F. Wright
Beane, New York City; James change
J.
The
Inc.,
Mills, New York City; Irving Weis
Brown of the National Wool Mar¬
Corp.,
of
Keith
Boston; William
Reid of Bache & Co., New York
City; Charles R. Rudd of Pacific
Co.,
Top
York
keting
Bradford
ton;, E.
Second Vice-President is Elliot W.
Joins Hornbiower & Weeks
conducted
measures
people of this country
and of the woriA
enforcement
safety
febvre of Rhode Island, Inc., Bos¬
beginning of
with nuclear pow¬
same
Building.
of
state
Elect
the
at
Georges A. Florin of Prouvost Le-
Wool Associates
Fed¬
by
forms of power with safety. I am
confident that we shall be able
is expected that in due course the
in the field of nuclear power will
the
these remarks, we have found out
how to obtain the benefit of other
Romaine
legislative
by
and
The mechanical
power.
constructional
•surveved
from
which
power
should also
that
up
because
the public.
both
Government
authorities.
of
one
in hand with other simi¬
regulation,
be
introduced,
and to the natural characteristics
restraining an uncontrolled
in¬
crease
we
protect
many
been
extent
to
necessary
questions.
reactivity
•
has
matter
the
to
technical
the
the
to
ones
on
fact
set
as
go hand
lar
eral
working closely with such regu¬
latory bodies.
There have been
experts and additional work
done
on
questions that they
raise
have
dangerous.
%sion
is
the
against hazard
minutest detail with respect to the
of
most
of the direct effect
been set
builder to analyze the design and
•operation of his reactor in the
♦consequences
nuclear activ¬
ities. The Commission regards this
the
of
responsibility for maintain¬
and protecting health
safety
connection with
27
(2639)
*
of
The Commercial and. Financial Chronicle
28
v..
(2640)
Continued
fwm page 6
ernment
?/?.i
and
Thursday, June 6, 1957
back to them
Our
Reporter
on
Governments
By JOHN T. CHIPPENDALE, JPv.
S
the defensive,
government market is still very much on
The
prices of the longer-term bonds now at, new lows
with
year.
bonds
for the
With the tendency getting stronger to trade out of Treasury
in order to make purchases of non-government
bonds,
much better yields, it is believed in some quarters
further low quotations for long-term government bonds will
which
that
give
be registered.
showing no signs yet of abating,
it is not surprising that the monetary authorities are keeping the
money market under pressure.
No immediate change is looked
for in this policy and, as long as it continues, the short-term and
capital markets are going to offer attractive yields to those who
haVe funds to invest. Because of the June 15 income tax payments
and some borrowings to take care of this need, the short-term
market should be showing no easing tendencies.
i
With the inflationary forces
.
last
money
and
evidence yet
government issues, principally Treasury bills
the most liquid
tax
bills, is very large and there is no
an immediate lessening in this need for such
anticipation
be
that there will
obligations. Some money which had been previously invested in
Treasury bills has been taken out of these issues and has been
reinvested in higher yielding corporate bonds.
Also, a portion of
these funds have been reinvested in common stocks, mainly new
issues, and in preferred stocks to a lesser extent. Private pension
funds have been the main switchers from short-term governments
preferred and common stock,
into bonds,
No
belief
The
month for
a
that
the
product
Polk
government will be in
the market next
the near-term market, has tended to keep a fair
of pressure on this area of the list. And this has pushed
amount
the yields that are available in these issues. The uptrend in
the bill rate to a level quite a bit above the discount rate, raises
up
to whether or not there will be an increase
the Central Bank borrowing rate. It seems to be the prevailing
the question
in
again
as
that there will not be any upping of the discount rate
discounts and advances at the Federal Reserve
trend.
opinion
from 3% as long as
Banks do not show any important upward
Government Bonds Remain Under Pressure
The
market is very active and competition for the
savings is as keen as ever, with corporates, tax
capital
available supply of
free, preferred and common stock
all striving for
large a share
as
it is possible to get. There appears to be a larger
amount of long-term government bonds around for sale because
of this money as
of this competitipn.
bonds are "1"
operation is
Nonetheless, specific maturities of tax-exempt
~
VV-
Yields^#30-Year High
The
yields for long-term corporate bonds is still on.the way
some of the recent new issues giving returns that have
not been available in nearly 30 years. The income which is obtain¬
able in both corporates and tax-exempt bonds makes the switch
from long-term, low coupon government bonds more attractive as
long as the call feature protection is there, especially in corporate
bonds. This switching pressure on long governments in order to
get funds to buy corporates will tend to increase the yield on Treas¬
ury issues and this will help in some measure to bring it towards
the level which will make governments more competitive with
has
been
Investors
Wary of Callable Bonds
This
You
clock
off
birth
one
On March 28
reset for
is
new
a
child
in
figures
in
it
fact.
future
your
We live with the
planning
higher
for
education.
I make certain
assumptions. You
known what
must have
you
when
you
that the
resulting taxes you would
increase might be your own. You
did not suppose that five or seven
cheaply
live
You did not intend to bring
as
into this modern,
are
sellers of long-term government
that they can buy better yielding corporate bonds, are
demanding a high call price for a period of years, or a non-refund¬
able feature for a number of years, seems to indicate they fear a
lower
interest
in
rates
not too
long
a
period
of time.
Under such
conditions, this would make possible the refunding of
the presently high coupon issues at a much lower, rate of interest.
or
ucation in
along
enough interest rates in the future to refund the
new
bond issues
prevail,
Business and
it
would
Basically, the Federal Govern¬
has so heavily pre-empted
the
of
sources
the
that
revenue
universities
its needs with what is left.
private and corporate
on
Market
(Special to The Financial Chronicle)
An
offering to the public of
$183,000,000 Federal Home Loan
can sup¬
support
by aiding
building new fa¬
in
cilities; and in making*
proaches to education.
sup¬
new
ap¬
■
port
unavailable,
state
and
with
the
There
feeling
poor
and crowded
supply, the task of
outfitting the colleges and the uni¬
versities will inevitably shift to
of
out
tax
a
great
our
of
More
The
over
cope
tjme
fully
white
and
Magician
Father
Federal
More—the
even
task
answer
know
is
way or single
to solve our problem. We
enough to embark
lines of attack;
ous
get
done.
The
shortage will mount
the next five years.
1he youth wilj be
Bv that
&
f
.
on
vari¬
The Dearborn
Center, of the University of Michi¬
handsomely
gan,
aided
by
Ford
Motor Co. and the Ford Motor Co.
Fund, is
will
one
no
to
a good example. The gift
University provides the
the
sit<*' and thd capital for
building. The State will finance
operation. It will link the ed¬
campus
the
the'college will not ucational
process* with
business
be ready for him. There will be and
industry through a coopera¬
certainly did not intend, a stampede, a scramble for avail*
tive plan, centering around science
did you, or expect, that the stand- able
places, there will be more and the
arts, business administra¬
ards would go down in proportion shocked realization of our
present
tion,
engineering, and graduate
What
to the rise in population?
neglect. There will be knocking
training. It is a most heartening
a folly that would be!
on the door and no room at the
alternative to Federal sponsorship.
\ The contrary is possible.
inn.
This plan puts the problem and
I
am
At that point the Federal Gov¬
pretty confident it will
its solution right where it belongs.
come to pass.
ernment will be moving in under
It
certainly > makes no business
I have said that higher educa- popular demand.
The state barcollege; but
lurther.
.
^
You
sense
is
tiori
the
one
America has
to
differential
support
that riers will have to give
h€jr
present
greatness. It must conUnue, it
mus^involve more of our al>l£ and
^
^
v
and
wav
it will require Federal authority
to achieve it.
If
into the
we go on
next decade without altering
pres-
whatever ta have
business¬
men
recommend
billion
year,
$4.4
a
indefinitely, for foreign aid;
to plan
so
centers
carefully great research
and
plants to
modern
industrial
goods for future
make
populations:, to face the already
up to meet Ce absolute needs
critical shortages in every profes¬
expensive higher education
sion and skill they, and America,
citizens of this nation will require available to selected youth from
require; and at the same time sit
that
this
be
accomplished.
We all the states.
The costs of the
idly by on the present topsv-turvy
have no alternative.
'
J' new Air Force Academy indicate
tax wall and witness a possible
How is it to be done?
We have some of the dangers we may endown-grading of higher education
a
good basic pattern, but it is in counter.
at the moment of our most criti¬
danger of breaking down.
Scholarships will be needed. a"d
ardsr .t^
We
and
mothers'," the for
the Federal Government will fianswer,
but not the nance them. It is already beginsound answer, through the ning to do so.
Laboratories and
clearly
are
toward
best
^
fathers
drifting
classrooms will have to be erected,
Federal Government.
new
to
schools,
enlarged generation of
youth
are
converge
and
the
begin¬
the high
now
on
college
popula-
anc! dormitories built; and Federal
appropriations
We have plans, but we do
not
in
have
places
or
sight for them.
teachers
in
are making
jet age.
Committee
on
colleges
are
important
under
enlarge
enough
to
their traditional share of stu-
In
economy,
new
allocate and to administer.
Back
in
the
1860's
state
colleges
universities
and
action-minded
involving Business, Con¬
gress, and Education to make a
pointblank
ways-and-means
at¬
group
tack
this
on
problem.
It is easier and more fun to solve
when
the
of
the
many
were
however, that we need a
compact and
more
this
founded
as
one
than to lear Russian. And,
General Motors' Dr. Hafstad is
alleged to have said, "we will have
to do one or the other."
^soLftln^glve'TSSSd Halsey, Stuart Group
e
cannot
vast
the High School
it goes. I would
is good as far as
propose,
This Is Not Land Donation
lA^fCan ed"c?£i0n- With more ™blic lands
Rut1 unciei rmtijllfiX conditions sevel'aI states
xjiil
optiixium
dents.
President's
The
Education Beyond
under national encouragement and
Plight of Private Colleges
Private
a
now
We
a
aid or'loans
Parkinsonian bureaucracy will rise
state
oxcart progress
or
will provide them. And
tion will double in the next dozen
years.
cal need.
fast
an
or
serve
FHLB Notes
financial
and
state does not know how to meet
With
Industry, Too
industry
ognition to the vital role of higher
education in our society and of
their dependence upon it.
They
can help establish a less
capricious
base of support for all higher edu¬
cation. They can give both moral
higher
make
ment
with the knowledge and the
they
With Sutro & Co.
The
disposable income.
education a disaster area.
fnvmn/i
being floated now?
spe¬
assured position
more
other items in the
present method ef¬
fectively prohibits intelligent pri¬
orities and choice in. the use of our
engineering, physics, dentistry,
need and the
skills
with it success.
to
advance
it
a
with
budget.
Government.
without
present
port these reforms. They can give
more concrete and effective rec¬
required to
This happened
not too many years ago, and memory is still long
enough, so that the present buyers of corporate bonds do not want
it to happen to them. With most near-term and long range fore¬
casts of business activity very favorable, is there likely to be low
authorities
the
abandon
abrupt halt to all building, includin& planning lor urgent facilities
in
shrunken,
and
local
and
then
Job for Business and
technological,
unequal
providing
them
teeming,
world
two
as
state
POsals made to the Michigan legislature by the Senate Finance
Committee would even call an
were
decided to ex¬
pand the size of your families, and
doing
in
the cific purposes, or place higher ed¬
and medicine. If this policy should
overwhelming
an
consider
ning
so
are
now
7% seconds.
The
The fact that those who
which
are
census
eight seconds.
American
to
We
ticking
business plans.
non-government bonds.
return
office.
million. The
170
over
President
when
States
took
You
with
bonds,
of
^ingro^jn a ^mtolasWon^ven^houg^tbis.-ifeaeh system of Federal universities;• to
ent tendencies, we may expect a
I higher levels and higher stand-
Corporate
up,
Because
the urgency of the problem and
the necessity for taking one forthe entire ward step each year. Present pro-
than
more
—
United
them
sizable amount of new money, and that this will be
"nonresi-
years—19 million peo-
seven
could
raised mainly in
out
a
three.
Change in Discount Rate Expected
students.
.
pie who have never heard of your
it had to be
market is having the expected effect on
money rates.
The trend is still upward and this is true for the
short-term sector as well as the capital market. The demand for
tight
into
This, at
schools
system of dedicated taxes for
shut
to
crisis in higher economic and psychological facts
education.
Our
population
in- already cited, state legislatures are
creased another 19,000,000 in the reluctant or unable to face up to
headlong
the
keep
should
states
dent"
and
straight
moving
are
every
The
would
their rightful and traditional place
in their local communities.
The
every
Tight Money Continues to Prevail
least,
sources
directly for
the support of education.
the
Education meet at the Summit.
We
of the
public by building walls between
and
Congress,
Business,
to* "surrender
is
some
of taxation to be used
Easiness, Congress, Education—
Where Are We Going?
where
give to the states
c$n now
schools
the
present society and
revolutionized by the
our
"by
the
when the Union
Eaff.tf,A
was
ceded to
wi-mf
ir
•
£°'"led', ,Whft better «se for this
it .
hehi^he'r
®
hflp £hem.es"
(fme of criticafneed'
ge m 3
ft
'finance* havfwn
Offers Alabama Great
Southern Certificates
Halsey,
June
5
Co.
&
Stuart
headed
an
Inc.
on
underwriting
which yesterday (June 5)
BEVERLY
Thev did and
paid off.
HILLS,
Calif.— sources of finance have been
In fhJs d
the Federal Gov- offered
$2,400,000
of
Alabama
Banks 4Vg% non-callable consoli¬ Lucille E. Brown has joined the
^P°" ernment has nothing to give ex- Great Southern RR. 4%% series K
dated notes dated June 17, 1957 staff of
275 North thn,,„K
Sutro & Co
cept what it has iiibi exduieu iiuiti equipment trust certificates, ma¬
though their „;f.„ inrrp?psp
^ift^ ,p
^ wiidt it xidb first exacted from
and due March 17, 1958 was made
turing
semi-annually,
Dec.
15,
Canon
Drive.
Miss
Brown
was
not yet come to grips with the
on June 4 through Everett Smith,
p0ckets o£
t0 whom "
pretends to give back. And then, 1957 to June 15, 1967, inclusive.
E. F.
Hutton & problem or its opportunities.
fiscal agent of the banks, and a formerly with
it gives back only a portion of
The
certificates are scaled to
The state has had to move in.
group of securities dealers.
The Company,
what it takes, for its brokerage yield from 3.90%
to 4.45%, ac¬
notes are priced at 100%.
One of the wonders, and I would
fee is high. Moreover, in the light cording to maturity. Issuance and
Proceeds from the offering will
add the glories of our time is the
of its
present budget, it would sale of the certificates are subject
be used to redeem $123,000,000 of
With Evans, McCormack
",se of. Pub"c support for higher llave to increase taxes'to get the to authorization of the Interstate
3^4% notes which mature June
(Special to the Financial Chronicle)
Commerce Commission.
education. We have not changed money in the first place.
source^
group
™1" div'd."£sJ°
the
17,
1957 and
the
banks
to
provide funds to
to
make
LOS
additional
ANGFT FS
'
Pnlif
Rnmin
'
credit available for their member
D.
inwlUuti0ILS*
ated with Evans, McCormack &
notes
due
-a
a-
x,
6JuneeTf a" total
$738,000,000
consolidated
will be outstanding.
of
notes
MacGregor has become affili-
C°-
South
Spring
Street,
^ we direction to acor have
our
complisR this,
only
ex-
tended the opportunities.
Now the state universities
con-
problem
«y
Exchange.
or
cut
j view this further intrusion of
Federal Government with dis¬
back, to Balkanize the Re-
I think Business,
Congress,
and Education should prevent it
—not by blinding our eyes to the
need, as we are now doing, but
may.
£™nt the mounting problem of
members of the Pacific Coast Stock
those
by positive and immediate action.
The
best
aid
the
Federal
Gov¬
The
300
issue
steel
will
box
be
cars
secured
estimated
cost
by
to
$3,000,000.
Participating
in
the offering
are:
Dick & Merle-Smith; R. Wr.
Prec<=prich & Co.; Freeman & Co.;
McMaster Hutchison & Co., and
Shearson, Hammill & Co.
Volume 185
Number 5644
The Commercial and Financial Chronicle
...
(2641)
Better Business
monthi*
Prospects Detected
number
60
days or less climbed, from
Aprils 91%, to 94% in May.
Better business prospects, halt in upward surge of commodity
prices
little brighter picture
and
found
are
On
MRO
supplies, the
limiting their coverage to
by purchasing
Purchases of capital goods items
agents of N.A.P.A. Survey Committee to be accompanied by
and for
emphasis
sive modernization
inventory reduction and shortened commitments
upon
shortest
The
majority of purchasing ex¬
comprising the Business
Survey Committee of the National
Buying Policy
ecutives
Association
of
The
trend
ixcuci
i
i
toward
W'th
reduSionln^ordering lead* time*
Purchasing Agents
predict in their May 29
marked
iiiciiivcu
Drean
first
reported
mer
Bulletin
0f
1956,
in
is
the
early Sumclearly evident
plant expansion
ranges
War
b
tt
are
since
or
exten-
also in the
the
post-
"
ff
th
h
If"
In
predicting
conditions
bala™e of "K".
:•
ndu
the
over-all
bers
As
period
will
business
be
and 37%
same,
result,
of our
a
their
side are: Copper,
iron, zinc, nonferrous
products, lumber, petroleum, bur-
lap.
short
Tn
Roy G. Vilas Joins
.
Gyrus J. Lawrence
sunnlv
snort
are*
supply
are.
Nirkel
JNickel,
Roy G. Vilas has become
ciated with Cyrus J.
asso¬
Lawrence &
n°+nS' members of the ATeW I01'?'
115 vPr°ad^?u' New York
City,
Steel plates' structurals and Stock Exchange. Mr. Vilas
buying
on
a
fjf^^ly partner
of
Vilas
Specific commodity Changes
.
SQUeeze>?iq
...
Th
way
With
Cruttenden, Podesta
(Special to The Financial Chronicle)
OMAHA, Neb.—Kay L. Breden-
mu
steiner
steiner
is
is
associated
associated
now
now
with
with
Cruttenden, Podesta & Co., 204
&
„
.
.
,
The Municipal Bond Women's
«ub of
South Seventeenth Street. He was June 28 at the Morris County GoH
iso- previously with H. O. Peet & Co. Club in Convent Station, N. J.
mem-
this
the
worse.
In
examining the present posi¬
of business, the purchasing
executives,
whose
Chairman
is
Chester F.
Odgen, Manager of
Purchases,
The
Detroit
Edison
Company, Detroit, Mich., report
that it is continuing the sideways
movement which has been so evi¬
dent
since
the
first
the
of
year,
Production
remains substantially
unchanged from last month. New
x
orders
not
are
quite meeting
pectations, and 32% of
our
ex¬
mem¬
bers say their new order position
worsened in the last 30 days.
has
25%
Only
in this
were
position
month ago.
a
The upward surge
prices
has
been
of commodity
halted—not
be¬
costs have
stopped climbing
.—but just because, in most cases,
cause
•
competition
allow
won't
further
/increases.
i">
The
employment picture is a
brighter than last month
little
<
'
but the improvement is slight.
■'
With
money costs high, mate¬
readily available, and some
production
schedules
uncertain,
rials
j the "heat" remains
inventory
;
This ready availability of materials is also reflected in buying
policy, where the general theme
,
is
■
wherever
./I/:,,.,/',//
^possible.
,
to
short
commitments
make
time
a
/
*
effect
to
on
reductions
for
-
as
possible into the
as
future.
Commodity Prices
There
are
evidences that
many
competition
has
Most materials
really
returned.
readily
are
able and manufacturers
are
avail¬
faced
with the problem of meeting
this
competition and, at the same time,
facing the fact that their costs,
particularly labor, have moved
upward.
The result has been lit¬
tle ; over-all
movement
in
com¬
Picture courtesy Automobile Club of
modity prices and almost 75% of
our
members report them to be
unchanged from last month.
The
Inventories
Again,
in
Buffalo, New York
race was won,
May, reports from
executives reflect
purchasing
their goal of effecting still further
inventories.
they
As finished goods in¬
climb—as
ventories
capital.
about
To
keep
investment
in
managements
penditures
.
are
for
report
concern
is
many
are—additional
expressed
this
tie-up
total
inventory
of
balance,
many
withholding ex¬
materials.
raw
Thirty-four percent say that their
inventories
with
49%
are
lower
reporting
this
no
month,
change.
Employment
There
is
necessary
evidence
some
that
reductions in personnel
have been made.
Some slight im¬
To the curious
crowd, it
Duryea brothers, it
For this
was
the
automobile
race,
that would
see
was
was
Thanksgiving Day, 1895. To the
clay they would compete in America's first
from Chicago to Evanston and back. A race
only six of
over
bers
said
companies
the
of
employment
across
miles per hour, the
the finish line
as
was
in
it
Duryeas'
won...
down. This month,
figure is reduced to 25%, with
63%
saying it is unchanged, and
12% better.
car
didn't exactly
sweep
but it did sweep
away
the
Nor
was
it
merely the automobile
ushered in. For,
took to the
as
now
entirely
new
age
which the Duryeas
a
now at
gasolenes
are years
companions for the
have
brought
products to
us
source
of energy.
biggest demand for its prod¬
demand heightened by the development of
gasolenes
new
one
Service, which has grown up with the
is faced with the
history...
Cities Service
era.
mem¬
their
automobile,
ucts in
These
last obstacles to the automotive
our
80 entries able to start... and
only two able to finish.
At 7 V2
them. Oil became the nations number
So it is that Cities
D-Day.
provement is indicated by the fact
that, in April, 31%
begun
an era
reductions in unfinished materials
&
Municipal Bond Women
To Hold Outing
tion
i
was
short-
material.?
* or Produc]lon materials,
four out 01 five of our members
some electrical equip-
an
on
in
23%
better,
paper
electrical
ment items,
items,
many
as
basis, 40%
think
few
a
some
down
nite indications of price breaks in
same
pessimism.
-
nrndnrtinn
items,
scrap
shaPes, and
.™Paretd to are buyinS to toe 60-day and; very uttle to report in thi
iries^view ihe ?utoe wfth
rT'
* °f M*,r PrlC^
"
degree of optimism or substant.ally unchanged from last
On the up s.de are: Some
•
•
*ime'
the
for
F
Qn
lead,
availability ofmaterials anddefi-
^ain^SinMfL
Tu
nee again this month. New highs are term basis will continue to be the
j of 1957, will be better than it has reached in the number reporting order of the day for some time
been so far this year. Statistically, a shortening of their commitment to come.
..
steel
and
equitment items.
neriod
5
52% said business would be better,
34% the same, and only 14 worse.
lated
products,s
"29
cars
Cities Service stations.
ahead of their time
..
.
fitting
of the future which automotive
men
today. More importantly, they're typical of all
products, and symbolic of
even
finer petroleum
come.
thousands and then millions of automobiles
road, petroleum fell heir to the job of powering
CITIES
® SERVICE
Chronicle
The Commercial and Financial
We See It
As
further, with the various consequences
entailed by such a development.
at any rate, is certainly
in an uncomfortable position in the money market, and
the fault is its own. There are those who would find in
the Federal Reserve the villain of the piece, but, of course,
Crisis
not, the Treasury,
or
the part of the central banking mechanism
which would have averted this situation or which would
eliminate it now could hardly do more at most than post¬
any
policy
on
evil day—and meanwhile hardly do less than
greatly enlarge the risk of real inflation. The fact is that
the Treasury, no more than any of the other borrowers,
can
safely be permitted to be or become immune to a
an
pone
substantially less than the
which saving is
situation in
the market mechanism itself can
be trusted to correct such an imbalance, and the market
can function effectively only if left free from artificial or
demand for funds. Only
arbitrary influences.
The national debt is too large and too
in the form of
constantly falling due. This debt, more¬
retired nearly rapidly enough.
is not currently being
over,
extensively
relatively short-term obliga¬
short-term or
tions which are
recognized authority in this field, Aubrey G. Lanston
& Co. Inc., recently set forth the true inwardness of the
situation succinctly in these words:
A
situation
"The critical
seems
to lie in the area
of the
The Treasury should experience a
Federal budget.
cash
surplus, exclusive of debt operations, for the first half of
1957 of around seven and three-quarter billion, but this
has been far from sufficient in view of what might be
termed a mild runaway from Treasury securities that has
occurred. The Treasury has issued $8.7 billion of tax
anticipation obligations, a sum that seems likely to be $1
billion greater than the amount it will have to repay such
advances. In addition, retirements and redemptions of
savings bonds, the redemption of Treasury securities held
by the International Monetary Fund, attrition on maturing
debt and Treasury purchases of its securities in the mar¬
ket will have required outpayments of $5 billion. The
total drain on the Treasury on account of debt operations,
therefore, will have been almost
its cash
$6 billion greater than
777" *
form
the
in
is
budget may not be on the
basis) is too small to meet the requirements
of
of concurrent
bills;
quite true that the Treasury surplus is a good
current conditions call for. It is too
small for several reasons. One is that the debt is too large,
and hence the need for cash to service it is too large.
smaller than
that the gross debt (that is
obligations outstanding but
not including enormous liabilities in the form of "insur¬
ance," pensions, guarantees and the like, the real extent
It appears almost incredible
the total amount of formal
of which
one
knows) of the United States is now very
smaller than it
little
At
no
that time the
balances
as
a
was
at the close of World War II.
Treasury
was
carrying enormous cash
protection against emergency. They were
applied to outstanding debt soon after the war, but such
reductions in the outstanding obligations as were thus
effected have all but been swallowed up by postwar ex¬
travagance and profligacy.
Almost Incredible
This record is the
more
incredible in view of the fact
that
by far the larger part of the period that has elapsed
since the war has been one of great prosperity. There has
been
no
serious
depression within that span of years. In
most of them the
to
general economic situation was such as
call for debt reduction
cepted
canons
by
any
and all commonly ac¬
of prudent financial management. Not only
that, but tax collections have year after year been quite
paid
or
the
into
debt into
rect to say, as so many are
the
While it is technically cor¬
constantly saying, that much
larger part of current debt is war debt, the fact that
it is still
as
large
as
when the war came to an end can be
charged against nothing but peace years—except for the
million
posi¬
in
cash
bilities
of
ap¬
S9
over
and
govern¬
Total current lia¬
to
amounted
$9T million.
Thus, cash about equals total cur¬
rent
liabilities,
the
and
working
-capital ratio is better than 9 to 1.
The
has
company
sizable
a
long-term debt of $€5 million of
41/2% notes, repayable in annual
installments
of $3 million from
whatever
1962
1980
to
and $8 million in
provisions
require
Note
1981.
maintenance of not less than
million
of
working capital.
indebtedness
in its early days about better debt management,
apparently it has given up the fight.
say
but
assets
current
was
ment securities.
doing—merely drifting
one may wish to
call it, may continue for a good long time to come with
nothing more than intermittent relief in one degree or
another. The Eisenhower Administration had a good deal
to
total
the
proximately $49 million,
it content itself to do as it has been
when
incurred
was
$z0
This
the company acquired Crown Zellerbach's
Fibreboard
in
interest
Products Company.
The notes
are
held by two insurance companies
Continued from page
which, at the time, received stock
purchase warrants for a 10-year
period to purchase 103,000 shares
2
$3.65
tech¬
and
products
packaging
responsi¬
tion with customers, are
package development and
ble for
ties
paperboard and packaging in¬
the
per
range
and
million will probably be
spent on research and develop¬
ment for
the paper division in
1957, including work done at the
level.
The company has a
mill
long list of original packages and
designs to its credit. Fibreboard
was
the leader in developing a
with
container
spent on new facilities
be
to
Jan.
fruit.
Allowing for the current read¬
justments going on in the indus¬
try, it is conservatively estimated
that
Fibreboard
may
not have
quite as good a year as they did
should
suf¬
ficient moisture resistance for the
shipment of lettuce, helping to set
off the big shift of lettuce into
to
bear
estimate
This
1956.
in
begin
now
is
predi¬
the paperboard
business
showing no important improve¬
ment from current levels, and also
assuming that there is no im¬
provement in the building mate¬
cated
on
division
A
business.
the
of
corrugated containers
rial
few years.
conservative estimate of net earn¬
is
ment
in the last
A very recent achieve¬
new
method of high-
a
of
corrugated
papermaking
printing
quality
the
On
production
new
processes
? for the
give prom¬
resulting in major gains for
output and quality, with
modest
additional invest¬
in
now
development
would
be $3.50 per share. However, new
acquisitions, improved operating
ings after
taxes this year
conditions
and
would
benefits
tax
that
from the sale of the
accrue
wastepaper machines
Metuchen
ise of
sibly bring about higher earnings
board
very
ment.
than
Last
the volume of this
approximated $32 million
vs. $94 million
for the paper di¬
vision.
Earnings from building
materials were practically nil last
year because of a decline in re.idential
building, the continued
loss at the Metuchen, N. J. plant
and the expense of bringing two
plants into opera¬
tion.
The main products of this
division are asphalt .roofing, gyp¬
sum wall board and lath, asbestos
new
gypsum
cement
lation
sion
products, industrial insu¬
and
is
paints.
the
Another divi¬
surface
hard
this
of
year,
floor
covering.
While the outlook for
gypsum lath and gypsum board is
regarded as promising, less opti¬
mism is held for the floor covering
year.
it, however, it is the
potential over the' years
real growth situation that
the
gives
believes
ment
able
This
sale
tial
will
result
in
substan¬
tax
benefits, as well as re¬
moving the drag of an unprofit¬
able operation.
The tax benefits,
and the liquidation of inventories
and
receivables, should liberate
roughly $8 million in cash, which
would
the
be
available
to
accelerate
company's expansion in paper
and packaging.
Fibreboard's
better
Net sales of
tors.
7%
up
paperboard
been remarkable.
10
growth
industry has
The company's
compared with $62.2 million
years
year
ago.
Net
earnings
quarter
re¬
comparable
adjusting for the 4% stock
dividend, net per share was 60
cents
vs.
66 cents in the first
After
last
amounted to $5.8 million, or
prices of $32 and $383/2 per share.
At
the
year
end, after adjust¬
ments
for
the
stock
dividend,
There
were
covering
the
and
:
outstanding
options
97,032
shares,
common
prices ranging between $14%
$30% per share. !
7
There
outstanding
now
are
1,-
582,277 shares of common, ahead
of which are the notes previously
mentioned
and
issue
small
a
of
shares
21,240
of
cumulative
4%
convertible preferred.
At
the
price of $28
current
a
share, Fibreboard common is sell¬
close to its low of the last
and a half as contrasted with
high of $43 a share last year.
At this price, the stock is selling
ing
year
a
approximately eight times in¬
net earnings and a little
dicated
better
than
four
times cash
the
dividends
at
share
rate
annum
per
proximately
common
aged
flow
The company is paying
earnings.
I regard
4.2%.
stock
of
company
as
$1.20
of
a
and yields ap¬
this
a
attractive long-term
the
well-man¬
busi¬
sound
capital gains
potentials.
Wish "Hank" Serien
Happy Birthday
Lewis "Hank" Serien of
thai
&
Co.,
120
Joseph-
Broadway, New
York
is
City,
eel ebrating
his 49th birth-
1956.
of
quarter
stock
$30,172,675 were
the
from
During -1956, op¬
additional shares
were granted at
11,300
on
common
period of last year, but due to
higher costs, net earnings dropped
slightly from $1,058,408 .to $975,160 in the first quarter of 1957.
day on June
his
and
17th,
Management
24th year
prime factor in the analysis
A
of
is, of course,
Fibreboard is for¬
golf with
bowling run¬
its President. He spent 25 years
ning
and became
This asso¬
ciation terminated in 1949 as a
result of differences with Sewell
U.
with
Gypsum
S.
President in
its
Mr.
Avery.
a
then
Marathon
leading
had
He
STANY
at
Lewis
H.
Ser«en
of
is
active
an
became
manufacturer
close
member
Corpora¬
food packages, specializing
frozen foods. He has therefore
a
second.
1936.
Keady
of
President
His
No. 1 hobby is
William L. Keady
nave
to
tunate
as
with
firm.
the
company
any
management.
in
sales, including building materials,
amounted
to
$126
million
last
year
I'rst
were
year
a
nessman's investment for its very
considerably
than most of its competi¬
this
sults
tion,
Since World War II, the
the
me
paper
Sales and Earnings
of
1»6J,
higher than at present.
to
dispose of the unprofit¬
plant at Metuchen, N.
J.
oy
will
taxes
business, and the management in¬
tends
that
earnings and the net
be at least 50%
cash flow of
after
stock of this
appeal. Manage¬
common
its reai
company
of
1956.
1,
tions
at
As I view
earning
division
plant, might very pos¬
last
$43.27
at
104,000 shares at $48.08
share. Options covering 87,000
shares have been granted to key
employees under the company's
restricted
stock
option plan of
ular, appear most promising Sub¬
stantial
sums
already allocated
expansion is now planned.
shares
104,000
share and
dustry, and Fibreboard in partic¬
Over $1
corrugated
for
Long
over
or
greatly
years, and
in the last six or seven
further
earlier this year, the warrants are
$7 a
prospects for
million,
$10.8
snare.
expanded
been
have
in
earnings
Research activi¬
design.
graphic
to
com¬
at $45 a share and 100,000
shares at $50 a share. As adjusted
for the 4% stock dividend paid
pany
The actual cash
1956 amounted
share.
a
flow
niques.
Separate
departments,
often working
in close coopera¬
stock of the
of the common
The Security I Like Best
manageable proportions had expenditures been
reason.
of
again. It would have to come into that market frequently
enough if a real start were now made in getting its debt
into more manageable form, since such a process would
inevitably take a very considerable period of time. Should
with the tide—the crisis, or
financial
company's
tion is strong. As cf Dec. 31, U53,
market for funds again and again and
money
word.
The
$43.3 billion more will
refunded within five years. Thus it is
large enough to make real headway in getting Treasury
kept anywhere within
$40.3 billion will
some
•
Finances and Capital Structure
inevitable that during the next few years, including the
remainder of this one, the Treasury must perforce come
Building Materials
deal
company
the
than
economic conditions."
It is
breboard
like these. Roughly
marketable debt, some $26.8
one year;
With a young and
ihanagement* team* Fihas become a growth
in the fullest sense of
energetic
times
mature within less
level,
*
expendi¬
ture side but, if not, it must be held to exist on the receipt
side, because the Treasury surplus (particularly on a cash
"The crisis in the
billion
containers.
7
surplus."
plague its managers in
speaking, of the $160 billion
have to be
Uncomfortable Position
An
years
to
eral bond market
certain to be
war
Coast.
West
which, curiously enough, brought, no ^
spectacular increase in the debt.
This enormous debt is, moreover, in the form certain
Korean
Continued jrom first page
'
Thursday, June 6, 1957
...
(2642)
SO
the
of
and
present
time is finish¬
ing his second
year as a
member of the board of
directors.
ample experience, fully qual¬
him to take over the di¬
ifying
rection of Fibreboard. He became
of the
President
pany
his
in 1952 and it was through
direction
that
has arrived at its
status
as
a
John J. Conroy
old Pabco Com¬
the
company
present leadjng
paper company on
the
John
J.
Conroy
passed
May 24 at the age of 68
a
away
following
long illness. Mr. Conroy was a
Gillisan, Will & Co.
mrtner in
Number 5644
185
Volume
The Commercial and
...
Financial Chronicle
(2643)
strated
Counterbalancing Soft and Strong Spots
also
sumer
by
figures
expenditures.
on
Data
31
con¬
of
the
Department of Commerce and the
Keeps Economy Steady, N. Y. Bank States
either
"The
of
tone
quarter of 1957
business
reports
mobile
improved somewhat during
May, although adjustment of in¬
ventories and production is still
than offset the lessened op¬
more
portunities
in
direct
production
under
lines. Within manufacturing itself,
National
nonproduction
way," according to the First
City Bank's June
"Monthly Letter" on business and
conditions.'
economic
note
slight
"Steel mills
of new
orders, while textile markets have
a
quickening
jobs—office, sales,
research, engineering, etc.—have
been increasing at the same time
that assembly-line jobs have been
declining.
Declining Weekly
buying since last October.
rations
rate
maintaining their high
capital expenditures, and
are
of
increases
far
investment
in
outnumber
programs
decreases.
Retail
sales and employment are holding
steady at high levels.
"Reports like these," the Letter
states, "effectively counterbalance
the well-known soft spots and the
slight sag in industrial outout,
which primarily reflects inventory
Wages
"The latest round of adjustments
has introduced a new element into
the
picture.
since
the
For
factory
1952,
leveled
off
and
have
weekly earnings
From
row.
December,
in
1956,
through April, 1957; (the latest
month available), average hourly
earnings of factory workers
mained unchanged at $2.05
hour.
In
some
inven¬
cases
tories
Some
of the
Suez
crisis removed
coal
production, but by May
output had steadied at a reduced
level.
Steel mill operations con¬
tinued their downward drift dur¬
April
reached
and
low
a
of
84.2% of caoacity in mid-May: sub¬
sequently they recovered slightly
scheduled
were
at
87.8%
in
the week
ending June 2. Automo¬
production appears to have
leveled
off
at
about
and trucks per week
150,000
through
midvear.
cars
in mid-April
and is scheduled at the
of-living escalator clauses
annual
automatic
These increases have been
in
same
pace
"For
rising
a
long
a
be¬
prices.
year ago
consumer
while,
workers
in
strongly unionized industries were
able to stay one jump ahead of
spiraling prices through constant
pressure
But
the
on
inflation
structure.
wage
has
at
long last
caught up with the factory worker
The consumer price index crept
higher in April to its eighth con¬
secutive
record
new
and
nearly 4% above
a
bor
officials
Department
was
La¬
year ago.
antici¬
pate another rise in the index in
quarter of last vear. In gen¬
eral, output of nondurable goods
to
a
Inflation
Continues
of
continuing, but not deep¬
ening, adjustment. Nowhere are
there convincing indications of a
major chance of direction in
nomic activity—either up or
—in the
Some of the rise,
eco¬
down
food
in prices
of consumer goods
and charges for services represent
delayed adjustments to earlier
vances
cost increases. The continuing cost
of
living climb, month
after
month,
out
bears
Congress
future.
near
retail
particularly in
prices, is seasonal in
by
the
report
the Joint
to
Economic
Committee in late May that there
Eighteen Months of Level Output
"During
the
past
and
year
a
half, output of manufactured goods
has fluctuated within
fairly
a
has been
ary
lessening in inflation¬
pressures and that if anything
the
nressures
no
may
have increased.
"Wage rate trends continue
nar¬
up¬
145 in April, the
index of industrial production was
ward.
2
in the automobile and steel indus¬
At
range.
points
below the record set in
In June
and
July a couple
of million factory workers,
mainly
December. 1956, and 2 points above
tries,
the level first reached In October,
living
1955. During this period manpower
"annual
for
needs
tion
manufacturing
actually
have
of
has
increase
h°en
rice
made
in
second
the
average
3%.
The
aggregate
hours
be<m
moderate
has
output
Dosrib^ by
re¬
a
eradual
attributable
productivity
+o
investments
heavv
j.n
factories and better machin¬
ery.
"In
tion.
of
all types of household appliances.
% Chge., 3rd Qtr. 1955
/';■
:
v
Seasonally Adjusted
Annual Rates
Income
Total,
in
current
Total,
in
constant
prices
+4
capita,
1956
in
+7
+3
+1
♦
1956
prices
Per
Expend.
+8
_
the
table
in
crease
the
rise
the
in¬
this
over
fully kept
in
will
receive
escalator
both
cost-of-
adjustments
and
improvement" increases.
Most auto workers, for instance,
get an 8-cent wage boost in June
cents
—2
an
hour
quarterly
a
as
living cost adjustment and 6 cents
as
a
contractual annual raise.
calator
have
clauses
become
in
labor
Es¬
contracts
widespread that
half-point rise in the consumer
a
so
pric*» index is estimated to add c80
million
to
annual
payrolls.
The
higher labor costs resulting from
when the
try
there
ever
consumers
incomes
rent
was
time
a
of this
coun¬
living beyond their
were
it
was
1955.
cur¬
Lured
'easy' credit and 'easy' terms,
supplemented their in¬
in that year with $5.5 bil¬
lion of instalment debt and $12.4
billion of mortgage debt. Today,
mortgage and consumer debts are
by
consumers
comes
still
increasing,
but
at
much
a
slower pace.
"Thus, the failure of per capita
consumption to increase need not
be
a
for
cause
alarm;
aided by
rising incomes, consumers in gen¬
eral
have shifted from
deficit fi¬
nancing to more nearly balanced
budgets. Indeed, it is remarkable
that
consumers were
able to make
this adjustment without retreating
from the record consumption rates
at the
height of the credit
expan¬
sion.
is
that
above
what
figures the infer¬
increase in the
product,
and
over
to
needed
was
keep
employment.
smooth
of
in pro^ueadjust¬
around
the
so
on
the
place. From the
economy
whole, job openings
as
a
in trade, fi¬
"The
inroads
purchasing
of
inflation
power
are
upon
demon¬
world
of
rather
a
the elite
To
the
mind
has furnished vital support for the
of adjustment and gradual
but
no
major
stimulus.
Exchange
Commission reports that corporate
ter set
up
a
new
record of
60% from the
A
year.
porate
in
Part of these
refunding
period last
heavy schedule
and
continues
of
municipal
the
auar-
$3.6 billion,
same
of
cor¬
flotations
second
quarter.
offerings constitutes
bank
loans.
Some
be
anticipatory
borrowing
beyond immediate needs. In any
case,
the bulk of the financing
may
represents an eventual demand for
goods and services by business and
government which will be the
ma¬
ac¬
tivity during the balance cf 1957."
Goodbody
Mass.
now
—
with
Thomas
J.
Goodbody
& Co., 140 Federal Street.
He
was
previously with Elmer H. Bright
& Co.
Then
HE
see
THINGS
SHOWS
IN
CONCERN.
build
a
relationship based
interest in your prospect
problems and help
him achieve his goals to the best
of your ability.
client's
and
Each
of
one
us
broadcasting
of
one
the
us
is
other
send
you
is
and
every
receiving set.
a
fellow
a
individual
an
station
Give
chance
a
to
before
message
try to tune in with him.
In
olden
the
observant
you
possible to
not only
people's moods
E.S.P., you know
when
If you
you
you
very
can't get
on
Directors' Seminar
so.
I
Some
tive
people
the
to
are
sensi¬
more
of
moods
others, but
for those who would wish to solve
riddle
the
the
"rub
of
learning
other
fellow
how
the
to
right
way" I believe that there is only
one
way that you can learn this
very valuable art. That is through
trial and error.
Many years ago
when I first began to earn my
living selling securities I thought
would
be
never
able
to
A
two-day
will
How Do You Acquire E.S.P.?
I
patient,
are
Penn, Bankers Ass'n
when to tune in and when not to
do
and
there
few
his
length and, unless you can
do so, be pleasant about it, sign
off, and try another day.
times
other
but if you have
under¬
be
the
1957
Directors' Seminar
conjunction with
Pennsylvania
Bankers
held
Association
Bucknell
this
in
Summer
School
at
University,, Lewisburg,
The Directors' Sem¬
summer.
inar will be held Aug. 21-22. The
dates for the
Summer School
are
Aug. 18-23.
On
Wednesday evening, Aug.
21, the registrants will attend the
first
of five lectures. This
lecture
will be
"Responsibilities and Op¬
portunities of Bank Directors" by
begin¬
especially young peo¬
ple,
go
through this stage of
development.
But if
you
will
Howard D. Crosse, Assistant Vice-
learn to sublimate your own
presented
human
stand
All
nature.
and
ners,
ego,
and
to understand the mo¬
desires of others, you
will take your first step toward
an
ability to not only get along
try
tivating
with
but
others
to
be
welcomed
I am going to give you
a
few suggestions that may be
helpful
to
you
in
developing
E.S.P.
If you have it, and you
have a good "statistician behind
by them.
you
build
can
an
invest¬
stay with
and grow through the years.
Know people and their hopes and
fears, and sell them a good in¬
vestment program, both are vital.
you
President,
Federal
Reserve Bank
of New York.
The remaining
lectures will be
Thursday
morning,
They are: "Attracting
and Developing Bank Personnel"
by
George
D.
Bushnell,
VicePresident,
American
National
Bank & Trust Co., Chicago, 111.;
"An Insurance Program for Bank¬
ing" by Thomas F. Glavey, VicePresident, The Chase Manhattan
Bank, New York City, and Chair¬
man,
Insurance and Protective
Aug.
22.
Committee,
Association;
American
Bankers
and
"Bank
Super¬
Viewpoint for Directors"
William B. Baker, Chief Na¬
visors'
by
tional Bank
Examiner, Third Fed¬
eral Reserve District.
On
Do's
Some
Don't
If
moods.
Thursday afternoon, Aug.
22, all directors present, will at¬
Don'ts
and
intrude
on
another's
wait to pick up
of happiness, con¬
you
emotion
the
indifference, or preoccupa¬
attitude and
accordingly,
you
will
cern,
tion and adjust your
remarks
you
will
static.
to
learn
tune in with
Have
they
can
a
time when
create
not
an
emotional
interview with
a
time when
be relaxed or don't do it
client or prospect
at
a
all.
at
tend
the
two-hour
program
pre¬
sented by a team of economists of
the Federal Reserve Bank of Phil¬
adelphia.
This program will be
held in conjunction with the PBA
Summer School.
Registration
for
the
Directors'
Seminar will be Wednesday after¬
Aug. 21, in the Robert U.
Hunt Hall, Bucknell University,
the directors' dormitory.
The Seminar program has been
developed by the PBA Summer
School Advisory Committee and
the PBA Management & Person¬
nel
Committee,
under
Summer
noon,
Telephone selling requires an
ability to create a mood on the School Director T. Allen Glenn,
part of the buyer and the seller Jr., President, The Peoples Na¬
that is relaxed and yet charged tional
Bank of Norristown, and
with the
importance of making Associate Director Edwin H. Keep,
a decision NOW.
Never try to sell President, First National Bank of
a client unless you can feel that
Meadville.
he
is following your ideas and
that you have his attention and
With Merrill Lynch
\
his confidence. Never "push" for
order, or
anything,
either when using the telephone,
or
in
personal contact with a
prospect or customer.
Your cli¬
ent's capital is much too impor¬
tant to him (and to you) for him
to trust his decision
making to
an
for
jor factor sustaining economic
THE
WHICH
to
wave
WITH THEM.
another individual at
provided the spark.
security offerings in the first
ABOUT
try
viewpoint.
Let
him questions
ask
will find that
tures have
and
and
are
gradually
Securities
talk
and
his
and
you
then do and
the things that automatically
keep them in tune with you and
Business and government expendi¬
"The
him
desk
from
say
lems.
growth,
his
things
tivations
housing boom in late 1955, con¬
spending has not been the
dynamic factor in the economy; it
sumer
process
hind
and
such, E.S.P. is knowp as Extra
Sensory Perception. If you have
E.S.P., you have a faculty of un¬
derstanding other people's whims,
emotions, and subconscious mo¬
government sectors.
Since the climax of the auto and
and
McAuliffe is
Stability of Consumer Demand
"E. S. P."
Remember, every person is con¬
cerned with his or her own prob¬
business
BOSTON,
circle.
offsetting
ments have taken
viewpoint
?<=
and
the
with population and the price
level, has been absorbed by the
(Special to The Financial Chronicle)
industry,
fancy set of words.
pace
Now With
steel
of
Heard
abbreviation for
ment clientele that will
any
national
gross
going to lay
am
commissions, your
think of the other
person's problems. Get over be¬
your
benefits, and
upon an
have
an
you,"
Dynamic Factors
these
I
incomes.
these adjustments are exoocted to
foster price increases, particularly
the
You
Probably the
If
even
before you.
understand
shows,
expenditures
with
ideas
today—it is
"■Change of less than 0.5%.
"As
may
few years, you may
with these rather far¬
a
agree
fetched
you
you
it
of
seriously. If
been selling securities
quite
even
if
or
gullible,
days they called it an under¬
standing of human nature. But I
believe we can even go farther
constant
prices
salt,!
vantage,
YOU
to 1st Quarter 1957
Disposable
Consumer
in
chieflv
new
in
somewhat
h^ve
wopk
per
about
duced
since
and
1955
of
worked
The
production
drooped
1 %
than
rnm-e
produc¬
declined.
factory
number
workers
half
re¬
purchases
about $5 billion a year—more than
total annual consumer outlays on
ence
nature, but in large part the ad¬
record in April.
new
"From all signs, the situation is
row
declining mortality
additional
"From
Price
for
column
with a
wish to
can
some
have
you
rates
May and possibly further increases
in June and July.
to
contrast
of
cause
of
bit
a
of
and
you
consider
That's
1955.
for
pro¬
grain
be
laugh
this
take it
can
or
roughly equiva¬
lent to the rise in population. Just
to
hold
per
capita consumption
steady in this era of high birth
offset, however, by the declining
visions
raises.
or
You
off,-)
an
explanation is that
consumers now are incurring debt
more
slowly and repaying more
rapidly than in the summer of
ond
one
was
was
pace
cost-
the sharp cutbacks during the sec¬
rose
increase
age
18-month period has not
a
major stimulus to crude petroleum
bile
this
under earlier contracts with
somewhat less than
"If the sag in the index contin¬
ued in May, it did not go far. The
,
and
of
increases have
been negotiated
and many em¬
ployes have received pay boosts
wage
are
being reduced and al¬
pay.
The reduction in hours
everywhere the rate of ac¬
worked brought a factory worker's
cumulation has lessened. In April,
average weekly pay down to $81.80
the Federal Reserve
Board's pro¬ in
April from $84.05 in December.
duction
index
(seasonally ad¬
Earnings in April were still $2.81
justed, 1947-49 — 100) edged down¬
year earlier,
but
ward to 145 from the plateau of higher than a
when the worker went to spend
146-147
which
had
been
main¬
them he found that they purchased
tained since last October.
ing
half
Fully
illusory expansion caused by ris¬
ing prices. The remaining percent¬
re¬
per
most
and
half.
volume of premium rate overtime
adjustment.
end
expendi¬
consumer
time
first
wages
have declined for four months
a
home-building boom.
(seasonally adjusted annual
rate) increased $17.2 billion, or
7%, during the past year and a
quires
had their biggest flurry of forward
Stock
markets
have
been
strong and
commodity markets steady to firm.
Business
men
find
encouraging
reading, in many corporate earn¬
ings reports, particularly when the
squeeze on profits proves not as
bad as many had feared.
Corpo¬
and
"Aggregate
government, and other
growing service industries have
;
E.S.P.
in the
was
tures
nance,
has
than it
third quarter of 1955, which to be
sure
was
the peak of the auto¬
decreased consumption.
any
By JOHN DUTTON
little if any higher in the first
was
up or
Securities Salesman's Corner
re¬
measure
standards—"real" con¬
expenditures per capita—
sumer
down — in the
near future," the First National City Bank is not alarmed by
steady per capita consumption. Finds consumer shift from
deficit to balanced budget remarkable since it occurred without
—
...
widely used
one
living
.
major chansre of direction
*
veal that
of
Diagnosing economic activity as "one of continuing, but not
deepening, adjustment
. with no convincing indications of a
.
Council of Economic Advisers
appointment, for
agreement
an
anyone
who tries to rush him into
action BEFORE HE COMPLETE¬
LY
BUYS
Forget
ANY
our
PROPOSAL.
own
(Special to The Financial Chronicle)
an
on
personal
ad¬
DETROIT,
Cundiff
is
Mich.
now
—
Galen
with
M.
Merrill
Lynch, Pierce, Fenner & Beane,
Congress & Shelby Streets.
♦
S. Clifton Mabon
S.
Clifton
Mabon
passed
away
May 24 at the age of 86. Mr. Mabon
had been a partner in Mabon &
Co. for 57 years.
The Commercial and Financial
32
Chronicle.. .Thursday, June 6,
1957
(2644)
less
Continued from first page
has moved
steadily higher, a hard fact with
wnicn f know all of you here are
Our Stake in Middle East
Doctrine, reflect the
which our government
assigns to the area from the point
of view of our strategic defense
against Russian aggression. Be¬
cause
it is at the crossroads of
Asia, Europe and Africa and con¬
tains one of the two major canals
of the world, the Middle East is
of crucial importance to the econ¬
omies of all the nations of the
Free
World, both in peacetime
Eisenhower
importance
And it is vitally im¬
and in war.
portant to us to secure the alle¬
giance of the people of this area
in our attempts
to work out a
secure and lasting peace.
second
for our concern about the
East. It is an area which
is,
There
reason
Middle
uses
In contrast,
has only 15% of world
production.
U.
the
world's
reserves but which
only 1 % of the world's
oil
annual
S.
petroleum reserves and uses more
than half of all the petroleum and
petroleum
products the world
now produces each year.
Europe,
the second most important mar¬
ket, has very little oil of its own.
Moreover, the economic import¬
ance
of Middle East oil to the
World is
Free
growing very rap¬
idly.
it could be that this
However,
very
petroleum
of
tribution
dis¬
between the
disparity
day,
Energy is
55% increase.
a
relatively low-priced in our
still
but it is important to
future growth that we keep
country,
our
It
that
increase in
A 50%
way.-
in the
the relative cost of energy
50
next
afford to
slow
well
might
years
which
down the rate at
could
we
There¬
use more energy.
seek ways that
promise to keep the cost of the
energy the nation uses as close to
the present ratio of 7% of total
output as possible.
fore,
must
we
a
the
of
70%
contains
proven
now
however,
,
1900 to almost 7% to¬
product in
reserves
Coal
hand,
is
problem
the
fact, coal still provides 70% of
all energy on that continent (as
against about 20% in the U. S.).
As recently as 1948, Western Eu¬
met almost 90% of its energy
domestic, production
from
needs
enced
experi¬
growth,
while domestic
production of coal
and
other
energy
sources
is
bumping against a ceiling. Thus,
Western
about
Europe is now importing
fifth
a
its
of
energy
re¬
petroleum consumption will quirements (or twice the propor¬
prove to be the basis for the de¬ tion we import).
As is the case
velopment of sound and lasting in the U. S., the rising cost of
economic
relationships between
energy is a source of concern in
the industrialized nations of the
Europe.
West and the underdeveloped na¬
This
brief
review
of
recent
tions of the Middle East. Both the
trends in the U. S. and Western
XJ. S. and Western Europe need the
Europe shows that we have al¬
oil the Middle East can supply. By
ready
gone
through a
funda¬
meeting this need, the Middle
and
East
foreign
the funds and the
earn
can
exchange
to
necessary
support its general economic de¬
velopment.
Supply
World's Energy
compelling
development
have
Middle
East
interest
a
in
latter's vast petroleum
of the
sources,
first to
is
it
necessary
basic trends
the
to
re¬
turn
in
the
world's
supply of energy. An ade¬
quate supply of energy at reason¬
able cost—from coal, oil, natural
gas, or other sources — is obvi¬
ously a necessary condition for
economic progress.
Our rising
productivity depends on our abil¬
supplement human effort
with energy applied through ma¬
ity
to
chines.
Only through the har¬
of
an
ever-expanding
amount of energy have we been
able to increase our production at
nessing
rate
a
that
has
exceeded
of energy sources.
The
industrialized nations of the West
must
import
now
the real significance of these
trends emerges when you take a
the
look
the
at
Until
recently, both the U. S.
Europe were able
to provide the increasing supplies
of energy needed to support in¬
dustrial growth largely from domestic resources. During the past
few decades, in our own country
Western
have had
we
increase
in
truly phenomenal
a
oil
production.
and
natural
Since 1920
our
gas
use
of
oil has multiplied seven times and
our
use
of
natural
gas
10
times.
Despite this growth, however, we
a
net importer of petro¬
leum
and
petroleum
products
about a decade ago.
We now im¬
port about a tenth of the oil we
became
use.
competent studies of probable fu¬
ture
in
trends
through developing
petroleum
resources
to
meet
energy
that
our
at
and
we
averaging 3.3%
what
more
natural
gas
have been able
expanding needs for
costs
afford to pay.
has
shown a
nual
the
field
energy
tions.
In
my
opinion, which I
hope is unbiased, one of the most
authoritative
cent
report
of
is
these
prepared
the
re¬
the Pe¬
by
troleum Department of the Chase
Manhattan Bank.
All
the
these
of
studies
show
continued prosperity
pansion
nation
of
the
depend
expansion of
and
than 80% be¬
tween 1956 and 1966. The increase
the
for
U.
S.
will
projected
whereas it is forecast that
in the rest
use
is
itself
Where
double.
will
we
find the large
supplies to meet this
growing demand? Our Petroleum
petroleum
Department
domestic
rise
it
ever,
to
each
it.
from
year
and
a
to
How¬
increase
to
running out
But
to
con¬
production
5%
a
massive
invest¬
sustain
the
mas¬
40%
growth projected for 1966 means
we must find
IV2 barrels of
Our
nation
use
can
of energy
long-term
growth
per year, or some¬
than
growth of
the
the
our
goods and services.
average
an¬
production of
oil
for
each
barrel
produced
if
we
are
to have adequate reserves.
In
the
past five years, we have
short of this requirement.
fallen
The
reason we
is that the
cost
have fallen short
of
increasing our
rising stead¬
oil reserves has been
ily.
I
added
am
to
told
that
reserves
the
for
barrels
each
ex¬
ploratory well drilled have de¬
However, the clined from 450 ten years ago to
have been
production in
that
surveys
that
show
Canada, Venezuela and other na¬
tions in the Americas could be
rapidly
enough, and
economically enough, to supply
increased
in
situation
large-scale investment program,
the present prospect is that West¬
ern
Europe's output of coal, oil,
natural gas and
nuclear power
could be increased by no more
than
third in the next 20 years.
a
economic
continued
support
short-term
the
In
vance.
the
only source
can
turn to
Western
Europe
for additional energy
supplies at reasonable cost is the
Middle East.
In
point of fact, unless vast new
deposits
discovered, it seems
are
that
clear
Hemi¬
Western
the
ing to rationing or other measures
of the sort that evoke a wide¬
spread public response. Yet the
long-run implications may well
be as significant for the U. S. as
for Western Europe. In the first
have a vital interest
continued well-being of
place,
in
we
the
The NATO al¬
liance is perhaps the keystone in
Western
Europe.
attempt
our
sphere alone could meet only about
half the requirements of the Free
World as a whole for increased
oil
build
to
secure
a
But NATO would quickly
peace.
be placed
in jeopardy if an ade¬
quate flow of oil to Europe were
interrupted. This fact was brought
home most vividly in the recent
crisis.
Suez
should
that
is
the
with
even
complicate our prob¬
enormously both from a sup¬
would
cost point of view.
in the
vital interest
most
Mid¬
In view of the perplex¬
political problems surround¬
ing
ing that area, this is far from a
reassuring conclusion.
What I
should like to suggest today is,
however, that we should not ap¬
proach these difficult problems
with a defeatist attitude.
They
offer
in my opinion, a chal¬
opportunity to demon¬
us,
supplies during the next 10
years. And this is why the Mid¬
dle East is so important.
There
strate
is not the
ment
slightest doubt that the
Middle East has the physical ca¬
pacity to produce as much oil as
is
needed
to
in
mand
the
balance
future.
Moreover, the basic costs of pro¬
duction in
that
area
(assuming
reasonable arrangements for tax
payments to local governments)
are
likely to be lower than in
other parts of
the world.
Consequently, the Free World
is becoming more and more de¬
pendent on the Middle East. This
fact emerges most clearly when
you
consider
that
the
future
growth of the Western European
economy
is almost wholly de¬
pendent on an increased flow of
oil.
of
the
on
an
East
This
is
in
Canal
Suez
a
the
The oil indus¬
to the challenge and did
rose
remarkable
flow
the
with
fashion
help of the U. S.
try
handled
was
short-run basis
emergency
admirable
true
Western
job
in rearranging
oil
world
of
Europe's
to
meet
with
needs
what
accomplished
be
can
through private foreign invest¬
supplemented by a realistic
Consider for
moment the bare
a
economic facts of the Middle East
cludes
a
political
19
low
so
in
level
a
level,
that the
fact
is
$100 a
The over-all economy of the
income
average
probably
year.
person
per
than
more
no
produces no more than $8-10
and serv¬
area
billion dollars of goods
ices
annually.
situation, earnings from
this
In
oil
if
could make a
wisely used
contribution
tremendous
area's economic
timates
the
to
development. Es¬
that the Middle East's
are
in
share
last
petroleum
year's
production amounted to approxi¬
times
amount
the
ceived
in
The
amounted
oil
total
the
years
earned
about
to
re¬
area
six
billion
$1
a
of
the
only
1950,
earlier.
from
That was four
billion.
mately $1
production
10%
of
the
foreign exchange earnings.
growing at a rate of 13%
shows that it will be
and
with
cur
deal
to
similar crisis should it
a
few years
a
difficult
more
emphasized how
growth pros¬
future
pects in both Europe and the U. S.
to
are
in
(he shifting political tides
the
this
Middle
East.
realization
powerful
ment
of
a
has
to
spur
In
Europe
acted
the
common
as
a
develop¬
market
(or the common market
to
be
of
as
called)
it has
could
strengthen the economies of the
European nations mak¬
ing them less vulnerable to ex¬
ternal developments. In addition,
the
Suez
crisis has provided
a
great impetus to the search for
Western
oil
in
the
Sahara
demand
the Middle
Desert
times
and
in
the
its
Middle
for
show that
1966
East could
readily in¬
annual production 21/2
could
and
oil
But other nations, as for
example Egypt, Syria and Jordan,
benefit from oil production
substantial
sums
by
earn
been
her
efficient
capitalizing
forward
look
to
earnings could be chan¬
productive investment,
they could generate a significant
rise in living standards through¬
out the Middle East.
Experience
as
world shows that the
which
much
as
manage
15-20%
of
their
annual
trial
production in roads, indus¬
equipment, farm develop¬
ment and the like achieve
a
sub¬
stantial rate of economic progress.
range
Earnings
to
lift
from
the
this through
on
nation
(not even Egypt) has a
monopoly of the means of
transport for oil, or even of oil
production.
The huge tankers
now
being built are, in fact, too
big to pass through the Suez. And
true
economics
of
tanker
opera¬
tions point to even bigger units.
Given
ital
time
sufficient
and
investment
cap¬
in
huge tankers,
pipelines, and the search for new
oil
the
reserves,
could
by-pass
Western
World
artificial bar¬
riers such as Egypt is using in
Suez, that may be imposed under
the
any
influence
political
oil
of
short-sighted
In any event,
major opportun¬
pressures.
remains
the
ity, the great resource which, if
intelligently used, can lift the
Middle East from its present level
of relative poverty.
Progress Already Made
Some
Middle
Eastern
?
nations
have already made good progress
in putting oil earnings to work
support
major
the
general
$iy2
flood
completed
projects on
control
and
de¬
has
Euphrates
Rivers
working on a six-year
billion
development
pro¬
now
In
gram.
oil
where oil
fantastic
son
economic
Iraq
Tigris
and is
rich
little
Kuwait,
amount to the
revenues
figure of $1,100
each
derway
year,
to
per per¬
is
program
a
build
roads,
un¬
develop
port and build a pipeline
bring water from Iraq.
rate
Middle East
oil
of
are
sufficient
investment
into
this
in
15-20%
and thus help generate
an
to
However, the fact that oil earn¬
ings, the
Middle
East's
major
sources
of foreign exchange, are
not
evenly distributed through¬
out the region has led to uneven
development. Some of the major
oil producing nations have great¬
er
annual
use
revenues
effectively
state
other
of
in
than
they
their
can
present
development,
whereas
are
hard-pressed
nations
for funds to finance
development.
From a financial standpoint, there¬
fore, there is need for a regional
approach to the area's problems.
In fact, an impressive number
of the Middle East's
lems
only
basis.
if
handled
In
general prob¬
solved
be
can
broad
efficiently
regional
on
a
terms,
major problems
are
transportation
the
system
to
to
regional, as
tional, effort:
(1)
The
and
parched
examples
opposed
waters
two
to develop a
of
to
lands.
can
support the
a
case
to
na¬
a
the
be
for
Nile
could be used to develop agricul¬
ture not only in Egypt but also
in
invest
to
to
It
is
important to recognize,
however, that in the long run no
concrete
the
facilities
control of the Suez Canal.
Three
nations
in
deal¬
Moreover, direct
production ac¬
only six of these 19 na¬
from
to
crue
advanced
around
than
are
problems.
receipts
oil development.
neled into
we
ing witn
19
political units of
widely
differing
characteristics
receipts of about $18 billion from
If these
East
because
water
lines to
to
the
bring
the
Middle East oil
third of its
by
area
Latin America; to the building of
huge tankers; and to plans for the
construction of
additional pipe¬
move
a
that year. Thus, earn¬
ings from oil could likewise in¬
crease to $2V2 billion annually by
1966.
Over the 10-year period,
en¬
compassing six of the nations
Western Europe. A free trade area
come
leum
crease
hence.
The Suez crisis
vulnerable
oc¬
to
Projections of the world petro¬
year
more
in
a
Middle East and
per
plex
Venezuela
velopment.
subsistence
minimum
a
achiev¬
are
Middle East.
However, the problem of chan¬
oil earnings into growthpromoting activities is more com¬
to
with
Most of the inhabitants now exist
at
suc¬
finance
neling
The area in¬
population of 80 million people.
minimum of disruption. However,
the very fact that Europe's use of
is
able in the
entities
find it today.
we
as
Similar results
years.
program of government technical
assistance and developmental aid.
de¬
world
foreseeable
lenging
earnings to
a
result, real income per person
has increased 50% in the past 15
the
these reasons, it seems
clear that the Western World has
dle East.
oil
general
so
Venezuela
furnishing
Defeatist Attitude Decried
a
proven
transport oil to market. Egypt has
tempt to do without Middle East
For all
has
Venezuela.
re¬
An at¬
in the next few decades.
a
that
in
the
the
.
Americas,
Hemisphere does not ap¬
ply and
program
on
general economic development. As
could
to have a petroleum supply
adequate to meet the require¬
ments of the entire Free World
lems
a
oil",
used
and
pear
oil
has
area.
is
wanted
the
pattern
cessful
about
energy
the
of
Western
is
"sow
prob¬
concerned
be
Europe's
sources
throughout the
What
to
tions.
important reason why
A second
ad¬
future,
upward movement in living stand¬
ards
impact of Suez on our own
economy has been less dramatic
since we were able to surmount
the recent crisis without resort¬
lems
Europe, how¬
is radically different. Care¬
ful studies show that even with a
can
vy
The
Western
ever,
where it
shipped to Europe.
we
Europe's Shortages
The
be
Hemi¬
Western
the
of
bulk
the
well
may
involve
would
Even
S.
It is not that
is
increase
sive effort
ment.
States
U.
1966.
by
unlikely
than this.
oil—far
tinue
40%
is
United
the
that
production
almost
any more
of
believes
Various
made
us.
Mediterranean ports
oil
of the Free World
than
more
con¬
despite the fact that the recent
crisis arising out of the closing
on
more
should
we
Middle
Eu¬
the accelerated
petroleum produc¬
tion throughout the Free World,
for they anticipate an increase in
petroleum
consumption
in
the
rope
that
natural
is
sider first the areas closest to
our
Western
of
additional
ex¬
economies of
that
and
that
that
It has been
our
of
number
have been made by governmental,
international and private institu¬
at 63%
our
A
future.
standards.
and
important
an
part of the energy they use. How¬
population. Only
in this way has it been possible
to
keep pushing up our living
in
distri¬
world
bution
Free World of
growth
the
ever,
To see why the nations of the
Western World and those of the
mutual
in
shift
mental
In looking abroad lor
petroleum supplies, it
plement it.
one-third the area's requirements
for increased flow of energy to
considerable
a
emphasize that we should do this
not to replace the present flow
from domestic sources but to sup¬
economy
has
Europe
to
That would meet little more than
the industrial
Western
of
like
But since
of coal and other fuels.
that time,
would
I
oil.
of
sources
somewhat
There, the primary
of energy has been coal—
in
rope
our
petroleum we must interest our¬
selves more actively in
foreign
the other
different.
source
meeting
of
cost
sphere's requirements.
Europe
Western
for
In Western Europe, on
in the
needs for
To avoid a sharp advance
the U. S. uses has increased
4 »/2% of our gross national
ergy
exploration
of
all too familiar.
over-all cost of supplying the en¬
from
last year., And the
than 200
cost
Ethiopa and the Sudan;
The Jordan River could be
(2)
developed to provide power and
irrigation in a manner that would
benefit the countries
surrounding
it.
(3)
The
widened
Suez
and
modate the
Canal
could
deepened to
huge tankers
be
accom¬
now
be¬
ing built, thus increasing the flow
Volume 185
Number 5644 Ji
.
The Commercial and Financial
Chronicle
(2645)
Of
tradthrough one of the major arteries of the world.; J
These are only a few of the
many examples of what might be
ing markets for U. S. machinery, *
Yet, as I have tried to point out,^
equipment and other goods. Our the difficulty of the task
should;
total trade with thisvregion, both not blind us to the fact that the!
exports and imports, exceeded a Middle. East is vitally important"
done if a method could be found
billion dollars last year. If we to us, nor should it deter us from
td use the region's massive earn- keep our share of fhe
market, our pursuing a positive and vigorous
ings from oil effectively.
- v:,i exports to the
Middle East could program. Fortunately, there is an!
1
•
■
go up almost 10% per year in the interdependence
between
the'
*
^
,
.
.
Suggestion for An Authority
-
-
next decade., It
to
seems
Middle
me more-
•
33%
"(2.1; million)
holders
were
of the stock¬
housewives* A high-
falutin'. company
high flying for
'm'-v',
of
stockholders,
such
managements- is
sciouply - grounded
too
on*;
.
uncon-r
ihe thesis
that * the
existing company prac¬
tice must stand lorever free from
attack, and not only from attack,
.....
inviting the continued confi¬
dence
hiV :ri^l--0
of
of these peo-
many
ple.
7 In
is
message
33
but also from
must;
one
criticism 4
more
;
"This sort
not confuse the kind of
presenta->
tion one makes to security anal-f
of organization needfr
blood of some vigor and tem¬
new
East and
ourselves," for
perament. It needs men of saucy,
only hope of using their oil ysts or institutional
funds, with and even impertinent, curiosities.
effectively
to ; support
general the presentation one should make
And this new personnel required
economic progress lies in.
coop^ to the typical stockholder.
would channel the surplus funds. On. Middle East developments.
Many some room for trial and
error,
erating with the West. - A'I•.»
of these latter presentations have'
of the nations with large oil earn-.
some
authority and some leeway.^
^
importance of
our task is first one of under- no more of the juices of life than,
the
lngs
into
productive
Imagination and courage are
activities,
yie liliddlc East and the oppor-i standing. We cannot act intelli- so many tables of logarithms.
throughout the a
wu:i_ T
tnmtioc that. Mn
nnono'l
prized qualities today, and if theyThey are as bare of human appeal are not in aiv
always reluctant
organization, they
as
a
herring is of fur. Unfortu¬ should be
creation of a n<
imported temporarily or
nately, there is no immutable or
world that is
permanently—or even hired awaw
already generously mioiohze the very real difficulties haVe^iived^
in the Middle 'Eart
magical formula which one can from
we
can
endowed in this respect, I do not
expect to encounter on
competitors.
Next we must formulate a
pro¬ display here, and then be used by
the political front. As all of
believe that any existing
organi¬
you
gram which takes into account inserting a local company's name.
zation can fill the need.
4 "I
think the most serious threat t®
More¬ know, it is a region of historic
It requires some investigation of business
both
our
own
progress
arises from
v
ai»
objectives and
over, in view of the nature of the
racial, religious and political ten ¬
how a company's stock is distrib¬ instinctive seeking for security. I am
problems it would seem desirable sions, both domestic and interna¬ theirs.
Finally * we mi^st pro-*
uted, what these people's motives speaking about the efforts we make t<*
to have a new agency that
tional.
It is also at present one
keep ourselves safe in our jobs
ceed on our course with convic¬
tot.
tl^e
are " in
holding this particular see to it that we don't make any mis¬
Middle East countries would conr of the primary targets of Soviet
tion, strength and statesmanship. stock, and then determining what takes. This is sometimes called keeping
sider their own.
:
!
^ penetration. We can be sure that
your neck in, and it .has
One way of accomplishing this
might be to establish a regional
and more clear that American
businessmen and bankers need to
Development'; Authority. Avhich: keep np to datehnd well informed
;
their
In stressing
—
'
"
—
*
"
'
'
"
-
-
-
•
.
...
every
In
setting up such a Regional
Development Authority, I would
urge that its structure and opera-
/ v
tions
the
be
i>atterned
World
Bank
those
on
.
has
most
by
all
effective of all
international
odds
Continued
Such
ment
make
should
action
or
the Middle East is
an
lose
it
by in¬
ill-considered
move.
erations.
If
did
the
and
constructive
Regional Development Authority
could be
established, it might be
from
page
15
to
it
use
the
as
so
didn't
mech-
—
tee that such
solve
all the
social
the
and
East.
be
no
guaran-
an
Authority, would
perplexing political,
economic
Middle
it would
refuse to lay back on the oars and
.
course,
problems
Yet
I
am
of
sure
important step in
the right direction for without it
it
is hard
and
an
to
how
see
the
varied
conflicting forces in the Midcan be brought
together
die East
to
solve
the
problems
Such
our
interest
moted
of
an
complex
which
the
portance
in
helping
that
to
is
our
one
serve
pliances).
to
pro-
development
of
crucial
future
im-
security
and
prosperity.
While economic
growth is no panacea, it may well
be a prerequisite to progress on
the
social
and
political
fronts
along lines that promise to
tribute
bility.
I
world
to
.
..
have
peace
con¬
and
sta¬
.
talked
Middle
ahead
perhaps
East
have
can
even a
in, the
years
ease
Food
Corp.
backed
out
'
sprayer
it
has
ap
•
Chemical
&
California,
From
—
'
Machinery
in
example.
the
it
is
another
single
a
now
hand
encompassed
entire
agricultural field—up are usually sombre and portento packaging for farm products, tious documents, and are obviousSome, like Republic Steel Corp., ly couched by men of sense and
have
moved
from
industrial to self-respect. But many of them do
consumer
items. Republic has a not persuade stockholders, besteel kitchen line and a line of cause the typical stockholder is
modular
walls.
Both
Monsanto more apt to be Mrs. Susie Jones in
Chemical
Company
and ' Dow Kokomo, than Mr. John Bigwheel
on
mys¬
which
selves
Evasion of issues
for.
\
can
be dealt with in
Whether
the
ployees,
ments
much
as
given to their production
items
manufactured
fore
call
the
raiding party is
gate.
outer
(3)
icy
two
own
-
Krilium
has
nation's
security
among
a
soil
The typical
other sophisticated,
and
exceed
our
own.-
This
is
bound
to haves-a
dustry.
strong effect on our inAs Middle East oil pro-r
could
area
become
one
of
the fastest
grow-
other container materials.
of
the lushest
of
,
competitor's
And the coal
ing
in
petrochemicals.
industry is diversify-
all directions. In the past
the
public.
rides
hands
an
organization think exactly
Biscuit
Co.,
his
in
address
before
"Newsweek,"
company
Maybe
slows down again.
a
to
retained
consultant
* as
-
»»
to ; feed isJune.8..
management with a digest of new
scientific developments.
These
could
doctor
A
V
laws
of
degree
lead
to
improvement
of will be con-,
items or production of ferred upon
products. A constant exami¬ Dr. George
nation of new patents — done Keith Funston,
easily by patent research services President of
the New York
■—may turn up items which can fit
company
new
into
Stock
company's present indus¬
trial character and permit level¬
ing of some of the seasonal peaks,
a
diversification.
or
Research
development need not be
mendously costly projects.
-
>
•;
and
c o mm en ce¬
ment
tre¬
speaker.
guest
G. Keith Funston
;
Arthur
D r.
,
O.
Lovejoy,
Johns
Hopkins
professor emeritus of philosophy
and
former
member
the
of
Uni¬
versity qf Maryland Board of Re¬
gents, will receive the degree of
doctor of literature; and Dr. Al¬
bert E. Goldstein, prominent Bal¬
timore urological surgeon, will re¬
ceive the degree of doctor of sci¬
ence.
useful purpose.
a
Ex-
change
and
often
serve
1
Dr. Funston
This sort of organization rarely
Trinity
has flair; the sap rises slowly in
it; bounce and gusto are often
missing, and the flash of new and
persuasive
ideas
noticeable by
their absence. Nobody
makes
with
other big
premium
brewers
beer..
graduated from
was
1932 with a
with hon¬
graduated cum laude
College
in
bachelor of arts degree,
He
ors.
was
1'rom Harvard Graduate School
Administration
Business
with
in
of
1934
master of business admin¬
a
istration degree.
He has been an' assistant to tho
Vice-President in charge
the
of
American
of sales
and
Radiator
Standard Sanitary Corp.
and sales
planning director and later direc¬
of
purchases
for
Sylvania
Electric Products, Inc. —
*
:
tor
.
During 1941 he served as special
to the chairman of the
assistant
War
7
Productions
Dr.
Funston
Board.,
was
named Presi¬
take.
didn't. '
Said
Busch:
Busch's
his
"In
while
admission did not hurt him
with
stockholders.
on
Trinity
leave
he
of
served
absence
as
from
lieutenant
commander in the U. S. Navy.
my
Mr.
president
has
worst mis¬
made."
your
Trinity College in 1944 at
the age of 33. From 1944 to 1945,
dent of
brewers—hiked prices on
The local and regional
humble opinion, that was the
t
Honorary Degree
new vice president is
keep activating a fer¬ kins atcomment of4.fresh, ideas. Perhaps a
mencemen t
universitv. professor 'ought to be ...exencises.opv,
needed
'
f
2 1 have dealt elsewhere with the prob.
tw tTrd.'hr
the
; COLLEGE'PARK, Md. — Three
honorary degrees will be con¬
ferred
here
by
University
ol
Maryland President Wilson H. El-
the executive team.
...
•-
in
men
new
stockholder is not
has he great
Oil, one incomes of less than $4,000. About
industries, is ———
;
,
spreading ;into
shebang
into
Funslon to Receive
Quite often, a presi¬
dent, stirred by an announcement
nor
*
whole
tumbles
Association;
quoted
in
March 28, 1955, p. 79.
It?.1!0"*- shT lhat5,10
,
the
or
the National-American Wholesale Grocers*
had
Monsanto
conditioner
the
substitute
That 'Light Brigade
Before
cliff
a
tional
a business
you
Park Avenue2 In short, reas- many major mistakes in such an
enough' potoen- surance of stockholders, to some organization, because nobody gets
tial to keep a boatload of man- extent at least, must be translated much of a chance to make any.
agements and capital busy—have into commoner modes of expres- By the same token, new concepts
are rarely pushed sby
anyone on
made
strides
outside
industrial sion.
think
no
Conservative)eprnpany pol¬
risk-taking, should be re¬
on
a
is
'we can get" along without one of
them." Qeorge H. Coppers, president, Na¬
the
evaluated.
of
it
belittle
to
me
but
alike,
Risk-Taking and New Blood
~
from
I'd rather someone gave mo
an
argument. Let's not confuse atrophy
with loyalty. Let us rememberT that when
,
*
tho
of the enemy,
com¬
at
it
loyalty,
it.
over
be
And this must be done be¬
pany.
with
Loy¬
alty'—'Their's not to reason why, their's
but to do and die'—excuse me
please, I
would rather have a little disagreement
or
skepticism or whatever you wish t®
to the
as
by the
disagree
'i'V;'
be
of
for originality.
state¬
must
care
don't
we
:
.
value
stories
policy
company
—
for
.
because
we
are
'loyal', to him or
'loyal' to the organization we are working
Few men in such companies are
products; Dow has Saran-Wrap. powers of ratiocination. The invited to give utterance to new
prosperity. Middle East oil de- Clary
Multiplier
Corp.,
office Brookings Institution in 1952 ideas, or to think of company
velopment; can
be.- expected
to machines, has added -a ball point found that there were some 6.5
growth, because that is a function
continue, and, in fact, some pro- pen to its products. Packard-Bell million, stockholders of
publicly kept for the top echelon, when it
rars Company- one of the oldest TV- held corporations. About 80% (4.9 gets around to it. The philosophy
production there will be four- radio makers west, of
Chicago,
A
•.
fifths as large as in the United moved
3 The
Anheuser-Busch,
into air conditioning. Glass hiillion)
annual incomes of Inc., told president of that the 15% de¬
stockholders
States,
Over a longer
period, companies are girding themselves less than $10,000, and about 16% cline in the brewery's beer volume in
Middle East production of oil
may against the inroads of cans and
(slightly more than 1 million) had 1954 was due to the fact that it—along
our
that
.
boss
Chemical—firms in
would
important, chemicals.
an
decisive effect
.
temporary expedient—
a
bad climate
a
.V.
"Sometimes, when we adopt
'safe*
attitudes, we rationalize and give it a
fancy name like 'loyalty.' We tell our¬
re¬
(4) The fact that a company is
a tight organization with too
much hierarchy, too much promo¬
lieves he is directing his message
tion according to seniority, and
to stockholders.
Presidents' mes- with little outside
blood, is hard
sages are often written in style, for
anyone on the inside to see. It
figures of speech, line of thinking, sometime s takes an outsider's
which only other major executives glance to detect this failing —
can understand and approve. They which is why raiders sometimes
•
today about developments in a jiart of the world
that seems far away from us here
in Hot Springs.- Yet, as I have
tried to show,, what happens in
the
*
drift. The classic example is that
Keeping Stockholders Informed
of the coal dealer who buys an
(2) All this can't be done overice > company- to
counteract night,
particularly if the difficulty
seasonal trends. Some companies is
deep-rooted.
In
the
meango further. General Mills, for in- time, and
during the whole proestance, a few years ago decided ess, stockholders ought to be
kept
that the flour business was de- informed. This is a
complex, delidining, not growing, despite pop- cate and difficult
business, beulation growth. Hence it moved cause presidents'
messages are not
into many other lines and is still usually written for stockholders—
doing so profitably (although in even though the
president be-
them,
would
economic
area
economic
confront
Authority
an
a
power
(creating)
ideas.
new
are
newspaper
releases, annual
reports, stockholder letters, presi¬
dents' messages, bulletins to em¬
-
is, of
only
this fashion.
<
There
must
one
medicinal
Everything
;
of its activities.
Above all,
member that the truth has
is
General Electric's vacuum cleaner
installed^ development programs
sell
well,' the
company in
cooperation with universities
bought a TV show with Garry and schools of business
adminisanism
for- handling
a" part V of Moore as demonstrator. In a little tration.
Eight years ago, the AMA
the $200 million, of U. SGovcrnr^oyer a year, the newG.E. vacuum .-found that Only 5% had
such proment .aid funds, allocated to
the^ cleaner doubled its industry posi--fhe*e>- 'ar^ '-evidently
Middle East under the Eisenhow-- tion.
w many managements peering ahead,
er Doctrine.
In addition, if such
\
Companies Must Grow
developing their personnel, strivan
instrumentality were to exist,
mg to push forward.-Nothing lmthe
oil
; Diversification of all sorts is presses
companies
themselves
stockholders more
and
might see fit to take part in some possible to managements which
pays better dividends,
desirable
people.
tations—all
these
to
manifes¬
many
best present
can
problems
item, will
activate himself and begin an avid
year
reported
Perhaps
a
new
advertising that from one-third to one-half search for offsetting items. But
medium
is
the
once
the crisis has passed, the
answer.
When of the
companies surveyed had
•
balanced
a
company
works wonders.3
well, that root beer, black three years, Pennsylvania Coal &
World Bank practice of
making cherry, cream soda and cola, soon Coke
Corp.
(now
Penn-Texas
sure that the
projects it finances followed on the market. Profit- Corp.) has gone into oil
production,
fit into an
economically sound ably, I might add. The Borden shipping, the manufacture of wire
development program for the bor- Company sensed the trend, too, and cable and of industrial
equip rowing country. Its management and got into the parade. Promo- ment, and uranium
mining.
•
should
be
competent and non- tion
of
its
nonfat
dry
milk
Sometimes a company president
political. In fact, it might be de--.brought sales to 75-million pounds
wonders where he can find the
sirable to work out an
arrange-^ hi
1954. Only 5-million pounds caliber of executives to
help him
ment by whictrrthe World Bank
were
sold in 1949. Low-starch re-examine
and re-direct his cornwould
provide ■ technical assist- breads are now popping up in the
pany. A management development
ance to the
Regional Development stores, and Armour & Company program is
always a possiAuthority dn finding personnel has introduced the first salt-free
bility. The American Management
and developing its
pattern of op- ihebt lor over-weight peisons.
Association
last
follow
sort of treatment
the
not
Keeping Stockholders Informed
To Stop Raids and
economic
It
us
"Far
a
vestments.
Let
if that.
the
organiza¬
Regional Develop¬
Authority I believe should
only sound loans and in¬
tions.
in
huge.
terious
postwar
our
Our stake
,
of
which, through
been
.
.
by Russia in an attempt to promote lts interests .in that area,
its progressive ideals
coupled with
able
and
conservative
manage¬
ment,
possible device will be used
T,
.
.
He
accepted
the
presidency of
ia
the New York Stock Exchange
1951.
The Commercial and Financial
34
Continued
from first
No Saturation Yet
high birth rate, we have 60 million
new
consumers
to contend with,
consumers who do not themselves
anywhere
produce.
page
The Five-Year U. S. Potential
in
Total
is
population
I
the
Since
of
end
the
war,
than 40 million children have
more
been born in this country.
million
born.
In
children
more
the
entire
will
be
net
figure,
will
births in
a
have been added by new
this 16-year period. And not one
of them will have reached normal
working
but
sumers
not
duction?
The
labor force
of the
The
of
survivors
that
today those who
first
time
balance between
too
or
11
million
years
and
that
and
sta-
has
for
the
of the plans
survey
been
made.
I
ally,
it
but
has
been
made
shortage
to
be
met
1-
•
4
.
can
arrive
at
the
ntiAfipitiwA
somewhere
is
investment
Ar.
As
labor
new
~
a
will
/%«>
be
products
market
.U
from
coming
American
into
A
2
midst
of
great hassle
a
purchases
second
People
is
are
in
not
two
ment will average
when
you
vestment
bus
nn/4
to
turn
if
leaders
any,
in
the utilities business would be inclined to quarrel with it as a re-
liable
figure,
might
how
say,
do
but
the
Operational Procedure
to
private
know?
so,
What
have you got?"
Well
in
,,
this
/hi vioif
ates
of trying to deal with these probbut lems, so I shall talk in terms of
basis
instanrp
,,
andVhllVldP
made
T
thinV
»
.
a
a
-
exnend^tnrpfUniVey
S
ana
u
very
power
j
companies
over
-
tr^n^'^tran^latP^PsT
—
.
vLvS" nesf^nd
very comess, and
f
cTapJ a
expenditures plans of the electric
n
operational procedure.
•
t
,
!
for thR
fomthis
„
vol.i^nfhnS product
volume of business.
The
first
^
with
*1.^
_
has been
boom
If I
approach
is
greatly exag-
the official figures re-
ported by the Government, I find
that
the
„rpa„
increase
since
ment
—
the
total
in-
in uroducer'!' durable eoniD-
Xut 24%
l947-49
24%'
has
7h7dcal
around
turn
again
in
the
for
answering that question.
Instead
of
referring
to
profits
and von
goods
government
services,
and
cor¬
and
consumer
ex¬
national
gross
shall
shall
duction Index has gone up
against 24. That is
I
technical
I have in mind to give
figures for the next five
but they will not have too
meaning unless I compare
years,
much
them with what actuallv has been
haooening
this decade
the
the eighth year
the
seven years
'50s.
We
and I
am
projection
a
to
the "Dynamic '50s."
as
Dynamic
about
seven
referred
■
We have actually had
of
bast
the
~
often
on
are
in
talking
through
to
1962.
In
the
'50s, thus
Dynamic
far,
the gross national product in phys¬
ical terms, in constant dollars, has
no
46%
as
boom.
reasons
Miiysnjcu
physical
mc
the
increase
seven or
is
all it is.
re¬
the
business
plus deprecia¬
flow
cash
durin<*
Amerw°n
of
the
next
.
will increase each
higher
five,
y«ar
bv
a
Ran
the
increase
in
gro«s
"tional.
orodimt. Tn other words, the marr"t'o
percentage
product
national-
will
onlv
not
rash
R.«
between
flow of ppvninos imd
main¬
be
tained but also will rise.
Another
phase
of
Re dynamic
has
to
do
conseauence
subject
of
with
unemployment.
the
The
question to which I have a^dre^sed
myself R "How much ungmolov-;
ment will there
he in
ootential
American
if this
1962
out
works
as
indicated?"
The
amount
of
unemployment
in 1969 would be between 5%
you
mv
there
Now
are
certain
that spring from.
and
in¬
that. If
think t have been too hRh in
projertion of gro^ national
product, then you had better get
ready for unemployment of more
year.
than 5%
on
the average 514% a
It will not increase that rap-
idly during the next five years. It
will increase in physical terms at
the rate of
ahni,t"4%
a
vear
f
But
no
you
vuxuuic
volume
in
a
annual
the
at
8%.
In
the
increase
be
Now,
a
five
be
about
slower rate
one
of
rate
next
will
might
about
years,
514%.
the
It
of increase.
say,
"Doesn't
ux
of siateci
stated
verv
very
easnv.
easily. 'mere
There
the during the last
cream on
was
was some
some
of
fact,
of
think
mav
are
uct
in 1962.
to 7%
matter
.
•
whatever
tight
money,
budget, tax reduction or anything
else,
both
the
Federal Govern¬
ment
will
I\ think
of 50%
As
an
Producers' durable equipment and extra whipped
j
that
is retained earnings
ferences
! do not know just what it is, and eling off? That we are losing moI am not criticizing the Govern- mentum?" No. I do not think that
ment' but 1 make up my own in~ is indicated, and the reason can be
24%.
you
tion.
taken,
look at
we
earnings. So I would =?v
that the cash flow. whi"h
ported
to
f'ow.-
adequately
not
are
into
caih
use
we
into account when
7%.
The Dynamic '50s
—
of
dicated to you that because of the
during
•
have
I
years.
Government figure in this this indicate that the economy is
?a?e haf sometl}m§ wrong with it. slowing down? That we are lev-
an
when
em.
my
t
,°f, t^nnical reasons l
get
They
taken
adequately
are
account
n
^e Certafnly' thTt isTo boim
For
important changes in deprecation
and
other
accounting r>rgctices.(
These
private
on
beTn
7
!7
term?
ter™ o£ ™rrefnt P"ces' the
fTe- Dynamic 50s gross national prodthus far have seen
increase in
officialTovemment
as the iast
on
Ar^ they going t* in¬
any?" Well, I have a form
crease
be I
can
sorT of"correlaUon"
tunciciuuu.
Federal
the
and
Reserve
fully dedicated to continuous
growth
of
the
Thev
are
objective
an
as
American
economv.
pledged to the use of all their re¬
sources to that end, and Rom the
the
nature
of
would
have
have
Re
men
courage
nation to live
involved,
uo
and the imagi¬
to that pledge.
At the moment, thny are
to
retard inflation.
ing to hold
I
doubt Rey would
no
They
trying
are
trv-
certain things in check.
the cake Bear in mind that in the long his-
seven years
because
tory of American business cycles,
eight years, instead 0f the necessity to increase the the thin<* that killed us so often
even
if it is 50%, defense spending by the Federal was a crisis. It was a crisis in the
great
boom.
It
is
a
Government.
years. We have had consumer side. I have already in- growth trend, and that is about fense
broad response from com-
ing to be?
increased
use
—~~
y"am!c uca ui
dex of
nnr^p°T
purpose I
r
a
slightly
you
7nd..n?™r. nai! becau^th7 Federal' Reserve "pro-
down; that he is mysterious and
he is elusive and finally pulls a
figure out of the sky and that is
it. Well, that is not the right way
•
,
i
we
uct, and
in-
gerated.
Now, the second major part of
skeptics
some
"Well, maybe
you
of
The result is gross national prod¬
.
—~
Probably few,
industry.
always run
question, a tough question,
kind of na«tv question:
They
say, "You might be right, but what
about profits? Where are Revv¬
into
years
that
your
do
mi
j......
generating explain in very simple terms how
capacity of the electric light and one goes about getting the results.
power industry during the next Sometimes people figure that an
"•™
five
will
years
will increase at
an
economist is someone you never
you never
a
no
a
correlation, but I think that most
continuing increase in the rate of
+ h«
expenditure by the Federal Gov the ernment.
disposal, and
f.Ve:aEj?'. 7b°7 !£.»ye.?r;_™at
is
fairly high rate of increase,
Except for
sign of leveling off,
slowing down
dynamic
pressures
on
see
not go into any
tedious technical detail about the
4U„
.
their
to
estimates with
product.
the next
over
got
of
penditures
tional defense and the other
spending by the Federal Govern-
working harder. They are not go- this talk has to do with operaing to be working harder, but tional procedure. Results can be
they are going to have more power stated more clearly by trying to
at
spending in
years.
Consequences
relate the combined total of those
the budget. And I think it best to
that the spending on na-
assume
pres¬
pressure
the field of power.
seven
I have covered
And
operating procedure is to
my
over
industry as a probabil- we must be due for a considerable
ity rather than merely as a vague setback. I do not subscribe to that
theoretical possibility.
view because I think the size of
Available
the first dynamic
The
sure.
million.
1.9
forward
investment
eral Government, you find some
difficulty because we are now in
the
has
move
American
Power
2
years
neighborhood
to
Now, having worked
for the benefit
everybody.
last
The Dynamic Industrial
next five years.
Rate
However, in terms of the Fed-
industry
nrnrlnntinn
nrnonecoc
the
of momentum,
the
in
five
American
years from now,
marriage rate will be above
again.
and
and they are the three reasons producers' durable equipment that
why I speak of the potential of the boom must be about over and
More
loss
million
situation
that is available and which helps
to cut the unit cost of production
That is
the
in
I do not believe that
Steady Government Spending
will increase steadily. The other
benefits from the research will be
in
next
that I
beyond that, ten
the
result of this research the
.
of
the
of being
million,
1.5
around
million
1.8
in American production,
-
annual
average
of
stant assumed defense
More
year.
processes
_
growth
and the next five years is
almost entirely this difference be¬
tween the jump
in the defense
spending of the past and the con¬
years
is for two main purposes, to find five years about the same as it people would be satisfied that it
new products and to find new has this year. I see no progressive is feasible and practical to make
x.
In
of
have found that I have
than
more
a
the marriage rate, instead
first consideration
capital expendimost pressure is placed on Ameri- m
processes of production and tures.
The main item in capital
can
industry to carry forward distribution which help to cut unit expenditures is producers'durable
capital expenditures, particularly costs and provide today's greatest equipment.
Producers'
durables
that form of capital expenditures resource in the battle to retard are
about two-thirds
of
capital
which provides a substitute for wage inflation.
ru
...
„
.
expenditures. It has been said
labor, which provides a greater
Research, power and people are that we have beeh having such a
output per man-hour for the labor the three great dynamic pressures, boom in capital expenditures in
w\
between the
rate
by the end of another five
from that to an esti¬
of the gross national product.
government
product, and the differ¬
ence
readyon; th0 Ppgrade again, and
were
marriages
find
side, and
this tremendous expansion on the
part of the consumer side, the uton
national
recently, that has slumped down
to IV2 million a year. It is not go¬
ing to stay there. In fact, it is al¬
satisfac¬
a
Well,
years.
do not get the jump of $20
we
billion defense, then we do not get
the jump of $40 billion in gross
air-
sub-
stitute is machinery and the power
to
run
the machinery.
With a
shortage
an
to
by trying
for labor.
!
in
That
the labor side
on
currently
There
two.
or
so
substitute
is
million
about 4%.
deficiency in the American business over the next
number of people of working age, five years confirms my estimate
of an 8 to 10%
per annum inwe
must
provide an American
standard of living to the 60 mil- crease in research and developlion people born between roughly
expenditures.
T^he research and development
1946 and 1962.
a
the next five years at
if
point two, onerating procedure, and have given
you the results, and I now come to
point three, which is the dynamic
consequences for American indus¬
try. In discussing this problem in¬
formally with various neoole, I
by
And with this
has
during the next five
rate of expansion over the next in a rising marriage trend with¬ in the way in which thev are re¬
five years. The rate of expansion out having a demand for houses. ported as headlines in the daily
in physical terms, allowing noth- We cannot eventually take care
newsnaper, I should
like to use.
ing for price increase, would be of 2 million marriages a year with "orofits" in the sense of a cash,
at
the
average
annual rate of 1 million houses.
This housing flow. There have been some very
,
The
to
over
which
first, state and local where schools,
road
building and
the
general
Pe0Ple who are thoroughly comthat we have a de¬ petent. And after studying their
results I have full confidence in
ficiency, 1949-62, in the supply of
the job they have done and their
people of working age of about
survey
of
the
actual plans
of
15 million.
five years,
pro-
The other big item in private
investment is residential building,
move
The
de¬
additional 4 million in the next
an
we
mate
did not make this survey person¬
last eight
the
research and
development
a
intentions
and
and it will be approximately
in
of $7 billion.
by economic
reason
The
been
in
increase
search
working age.
deficiency of people enter¬
the working age group has
young to be of
ing
If
Well, I expect roughly an 8 to
10% per annum increase in re-
people of work¬
ing age and people too old
the
think
equipment will
increase in physical
annual average of at least 4%.
an
tistical analysis. Again, the skeptic community improvements necesmight say, "But how do you know? sary to take care of a suburban
What is your real basis?"
population call for a continued
histS
that
terms
I
durable
continue
capi¬
easily
labor
labor suddIv is ninnine far below
below
therefore
ducers'
expenditures, residential build¬
ing, and so forth.
and Development
the neighborhood
velopment
far
and
tory estimate of government and
private investments, we can fairly
this
be?Pof suchlnewU:"the
normal '
We
cost.
with the urgent
^
in the form of construction,
1962, I would expect it to run
well over $10 billion. I arrive at
coming
the
the
lower
to
through
not
are
need and demand for that purpose
tal
In
group
age
are
into
about $40 billion in gross national product. Over the next five
Ypars, 1 do not see any repetition of
that jump of $20 billion in defense.
I assume the defense spending will
stay about the same as it is now
°
+ 0
00 1+
an
in
saw
slump in the birth rate.
the
terms
research and de¬
velopment expenditure of Ameri¬
can
industry is estimated to run
born in the decade
for
in"physical
This year the
primarily the chil¬
are
It is
"this "analysis is're'search'and
Research
the
are
actually
five years the
same
a jump of $20 billion in
defense is likely to mean a jump
words,
output per man-hour and
help to keep unit costs down or
price index will advance some,
probably in the neighborhood of
11/2% a year. So you have here
development.
pro¬
in
'30s, the decade which
sharp
a
the
newcomers
were
dren who
for
producers during
the next five years.
Who then does provide
any
the
in
^
the end of the
next five years. They will still be
at the school age. They will not
be entering into the labor supply
of the country. They will be conby
age
And
uct, you have to apply to it a mul¬
tiplier of roughly two. In other,
a
and
increase of pocket, but I think not for too
there to be used to run machinery
roughly 4% a year and in terms long. It seems to me that during
to facilitate production. Itds to be of current
dollars, an increase of the next five years we are likely
used in the home as well as in the
roughly 51/2%
a
year.
That is to experience a very important
factory for the utilization of labor- looking at it from the consumer upward wave again in housing
starts
and
residential
saving facilities.
side.
building.
In order to get from power to
There are many devices for trying
Now let us look at it from the
an
efficient use of power, it is
to estimate housing, but I think
investment
and
producer
side.
one
of the simplest and best is
necessary in the American busiFrom the investment side we have
ness system to do a certain amount
to work in terms of the marriage
^WQ very broad groups to consider,
of scientific research and developrate in the United States.
government, through
mental work.
So my third
Right after the war, we had a
P?*"
the purchase of goods and servm
trying to lay the foundations jceg. seconc| js
private investment very high marriage rate for a year
period from
As
too low.
to be
\s not installed in a vacuum.
than 60 million people
more
going
the 8%
the end of the war, more than 62
million will have been born. Two
million have died.
is
near
need
crease
population
case, I will settle for
proposition,
When the power is installed, it
in
But
During
the next five years, roughly 20 to
22
it
cause
the
defense
translate
you
'Spending into gross national prod-
come
machinery that will in-
years will
a year, and that
will be given an increase in the standard of living
per
capita of between 114 and
to
point out population trends results and after doing so I feel 2V2% a year, a development that
which provide a dynamic growth that my estimate of about an 8% is not at all surprising but is in
push during the next five years, per annum increase in generating compliance with the tradition of
The first part is on the consumer capacity is going to be wrong be¬ the American way of life.
side.
When
have
we
American
1.7%
increase
sign that
no
ment and
measure
The popu-
of lation of the next five
panics representing about 90%
again divides itself into three sub-
parts. The titles of these sub-parts, the total industry. We have the
estimated capital expenditures for
are: "People," "Power," and "Re¬
search." People means population each year for the next five years,
We have carefully studied these
trends. And briefly I should like
see
saturation point
the
ability of
business to use equip¬
a
of the total consumers.
a
Chronicle... Thursday, June 6, 1957
(2646)
The increase in de-
spending amounted to about
$20 billion.
-
stock
market,
a
crisis in real esT
tate, a crisis in coirmoditv prices
—always a crisis. Now the Gov-
Volume 185
Number 5644... The Commercial and
Financial Chronicle
35
(2647)
ernment
and
the Federal Reserve
all their talents as best
are
using
they can to prevent
It
a
to
seems
that
me
Continued jrom
page 4
they have11
chance of being suc¬
cessful in
preventing a crisis. I
am
assuming that they will be
abolished
forever.
the
In
plants and American Motors' Wisconsin
plants also operat¬
ing on Friday and Plymouth's Detroit
factory, scheduled to work
Friday and Saturday.
.
on
Oldcmobhe's
things
talk
we
from
about
a
purely
standpoint, the
outlook
the
ness,
outlook
business.
We
are
are
an
We
assembly
Co.
strike
and
on
was
Tuesday of last
expected to
Buick's main plant in
in
busi
part of the rest
we
we
have
extremely important parti
88.8% of Ingot Capacity
Steelworks operations took an
upturn last week for the first
since early
March, "Steel" magazine reported on
Monday
last. Mills operated at
86% of capacity, or a gain of 2
points over
the previous week. The rate
is equal to a weekly
output of about
time
leadership and we have
responsibility in the free world.
A course of growth and
expan¬
sion of the kind I have indicated
would mean that the United States
sumers'
>
oiVvilof
to the resoon-
no
+*-10+
1oir,"rc!,-in_
A.v>'*r-
thing
significantly less than the
five-year projection that I have
given
would
you
that
mean
the
free world would be failing
behind
in the Cold War and in the
"com¬
petitive co-existence" of the world
today.
;i - %
- - y
I
not
am
lacking in faith in
so
the
white
towel
in
to believe
as
to
throw
the
in
be¬
race
tween the Free World and the So¬
viet World. We can make
good
this
potential,
and
we
on
going
are
to make good in the United States
Steel prices
Halsey,
Stuart
&
Co.
Inc.
and
associates
are
offering today
6) $20,000,000 of General
Telephone Co. of California 5%
(June
first
mortgage
due
June
accrued
bonds,, series K,
1987, at 100% and
1,
interest.
Award
of
con¬
steelmakers appear to think
month
holding right
are
ago, $128.98
Scrap
an
is justified.
29, "Steel's" arithmetical average
was
unchanged at $140.24 a net
a
year
continues
In the week
now.
May
base prices of finished
on
ended
steel
ton, compared with $139.71
and $106.32 five years ago.
ago
American
Iron
and
Steel
$43.67,
industry's
on
For the
ingot production
annual
like
rate
announced
a
for
month ago the rate
a
week
the
capacity of 133,459,150 tons
week
that
the
ago.
weeks
in
The
operating
than
based
rate
capacity
on
an
is
not
1956.
in
annual
comparable
The
capacity of
1956.
•
<■
of
as
down
Jan.
1,
Advances
wheat,
in
wholesale
corn, rye,
'-K'
steers.
'
cost
by the under¬
writers at competitive sale yester¬
day (June 5) on a bid of 99.279%.
Net
the
from
proceeds
bonds
new
the
will
be
sale
used
of
by
the company for construction pur¬
and to repay in whole or
in part any short-term bank loans
poses,
incurred
in
connection
with
the
construction program.
The new bonds will be redeem¬
able at optional redemption prices
ranging
from
105%
accrued interest.
to
plus
par,
None of the
new
bonds, however, may be called for
redemption prior to June 1, 1962,
if such redemption is for the pur¬
or in anticipation of refund¬
ing the new bonds by application,
directly or indirectly, of funds
borrowed by the company at an
pose
interest rate less than the rate of
interest
V
the
on
bonds.
new
last
week
included
flour,
Lower in price
fornia
provides
munities
sum
,
Wholesale Commodity Price Index Moved
Moderately
Lower the Past Week
Price declines
on
such
diverse
commodities
as
in
and
Southern
Toll
out
service
to
points
is
pro¬
vided in part over lines owned by
the company and other connect¬
ing
telephone
March
31,
served
a
phones.
94.29%
total
For the
1957,
total
of
Most grain prices declined in the week
as a result of govern¬
selling of surplus wheat to exporters. At the
beginning of
week reports on unfavorable
growing conditions for
i
ment
wheat,
and oats
moderately stimulated trade, but buying slackened
noticeably at the end of the period.
Although
exceeded
purchases
those
of wheat and oats in Chicago
slightly
preceding week, prices fell considerably.
of the
Movement
of
government corn subsided and prices were
Soybean prices remained close to those of the
prior week
delayed planting. Purchases of soybeans in Chi¬
wet
as
weather
expanded moderately, but were
considerably below those
comparable period last year. Average daily purchases on
Chicago Board of Trade amounted to about 41,000,000
bushels,
compared with 41,000,000 bushels in the
preceding week and 53,000,000 bushels in the similar week last yeari
cago
of the
the
was
noticeable rise in
a
Warehouse stocks of
during the week to
futures prices
cocoa
cocoa
as buying
considerably reduced
were
270,369
bags, compared with 353,981 a year
Trading in sugar advanced appreciably somewhat
boosting
prices.
A slight decline in coffee prices occurred and
ago.
futures
market
activity
was
sluggish.
f".
Stimulated
the
by reports
unfavorable
on
weather
growing 'areas, cotton buyers stepped
However, prices fell somewhat.
company
tele¬
843,523
common
stock
constituting
voting stock,
General Telephone
the
showed
company
revenues
net
income
over
the
Loadings Increased 0.1% Above Preceding Week
L
Loadings of revenue freight for the week ended May 25,
1957, increased by 382 cars or 0.1% above the preceding week the
Association
of
American
Railroads
reports.
a
ended May 25, 1957, totaled
722,903
decrease of 65,351 cars, or 8.3% below the
corresponding
and a decrease of 62,686
cars, or 8% under the cor¬
1956 week
responding week in
1955.
■
U. S. Automotive
Output in the Memorial Day Week
Touched Lowest Point in Close to
Eight Months
Automotive
output for the latest week ended May 31, 1957,
according to "Ward's Automotive Reports," declined to the lowest
level in nearly eight months as a result of the
Memorial Day holi¬
day which provided the majority of the nation's auto workers a
four-day "weekend."
Last
of
$72,-
of
$11,-
week's
car
outpu|t
totaled
preceding
states
compared
week's
output,
"Ward's."
and
Last
17,466
week's
a
year
ago.
output fell
cars,
placed at 8,200 cars and 1,991
Dominion plants built 6,217 cars
1,602 trucks, and for the comparable 1956 week, 10,937 cars,
2,416 trucks.
was
(Special to The Financial Chronicle)
ST.
Bolton
LOUIS, Mo.
has
been
staff of Francis I.
—
Richard D.
added
du
Pont
to
the
&
Co.,
Merchants Exchange Building.
Business Failures
Commercial
and
-
.
their
up
the
orders
*
\
.
'
1
'V
'' I?*
:
ft* '
1 &6
bales in the corresponding 1956 period.
week
6,724,000 bales, against 1,752,000 bales
last
For the
year.
Trade Volume
in
season
through May 21
Latest Week
a
exports
ago.
year
Unchanged to
4% Under Like Period of 1956
week, there
was
a
were
sustained at
a
very
high level last
noticeable
slackening in consumers' interest in
apparel and household furnishings. A spurt in bathing suit sales
accompanied the reopening of many beaches and bathing places,
was somewhat below a
year ago.
There was an in¬
but volume
crease
in
retail
sales
while interest in
in
of barbecue equipment, outdoor furniture
Gardening implements continued to sell well,
air conditioners picked up
noticeably. This was
contrast with the
Drop Sharply in Holiday Week
industrial failures fell to 225
in the
holiday
Dun &
week ended May 30 from 309 in the
preceding week,
Bradstreet, Inc., reports. At the lowest level since the first
week
reduced volume
in
household furniture
and
most
major appliances.
While retailers sold less apparel than
they had a year ago, there was a seasonal increase in consumers'
purchases of graduation specialties and jewelry.
The total dollar
on
volume
of
Wednesday of the past week
retail
trade
in
the
period ended
from unchanged to 4% below
was
according to estimates by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the comparable 1956 levels by the
following percentages: New England, East South Central, West
a
year ago,
South Central and Mountain —3 to
+1, Middle Atlantic and South
Atlantic 0 to —4; East North Central —5 to
tral —2 to —6 and Pacific Coast 0 to
—9; West North Cen¬
+4%.
Department
from
the
store
Federal
sales
Reserve
on
country-wide
a
Board's
index
for
basis
the
as
week
taken
ended
May 25, 1957, fell 1% from the like period last year. In the pre¬
ceding week, May 18, 1957, a decrease of 2% was reported. For
the four weeks ended May 25,
1957, an increase of 2% was re¬
corded.
For the period Jan. 1, 1957 to
May 25, 1957, an increase
of 2%
below that of the previous week by
while truck output decreased by 5,781 vehicles dur¬
ing the week. In the corresponding week last year 77,433 cars and
17,466 trucks were assembled.
45,803
and
'
and
Last week the agency reported there were
17,626 trucks made
in the United States.
This compared with 23,407 in the
previous
and
F. I. du Pont Adds
units
with 127,428 (revised) in the previous week. The
past week's pro¬
duction total of cars and trucks amounted to
99,251 units, or a
loss of 51,584 units below that of the
Canadian ouput last week
trucks.
In the previous week
888,546.
81,625
.
in
and sporting goods.
Loadings for the week
cars,
i.
similar
week
In Latest Period
...
totaled
Although food sales
Car
y
conditions
Exports for the week ended May 23, were estimated at 94,000
bales by the New York Cotton
Exchange Service Bureau. This
compared with 185,000 bales a week earlier and
78,000 in the
ended
week
12 months ended March
and
comparable 1956 week and 1,399,000,000 kwh.
June 4, 1955.
•
»
000 bales against 7,070,000
638,000,000 kwh. below that
338,000,000 kwh. or 3.4% above
the
*
'
The past week's output decreased
of the previous week; it increased
of
total
operating
888,631
As
company,
of the
is owned by
Corporation.
31,
the
All of the
the
of
companies.
1957,
Result of
Extended Memorial Day Holiday Weekend
com¬
ceatral
and
California
of
a
grains, live¬
stock rubber and cotton
pulled the Dun & Bradstreet daily whole¬
sale commodity
price index down slightly last week. The index
stood at 285.92 on
May 27, compared with 287.33 a week earlier
and 288.90 a year
ago.
According to the Census Bureau cotton consumption for the
current season through the end of
April amounted to about 6,776,-
The amount of electric energy distributed
by the electric light
and power industry for the week ended
Saturday, June 1, 1957,
was
estimated at 10,936,000,000
kwh., according to the Edison
Electric Institute.
Output turned downward the past week due
to the extended Memorial
Day holiday weekend.
telephone
certain cities and
California.
in
local
as
lard,
were
total of the price per
pound
raw foodstuffs and
meats in general use and its chief func¬
tion is to show the
general trend of food prices at the wholesale
level.
past week.
.
General Telephone Co. of Cali¬
service in
Electric Output Declined Last Week
from
oats, barley, sugar, coffee, potatoes, lambs and
;%v;.J':
The, index represents the
■:
the
won
40
to
compared with 34 last
cottonseed oil, cocoa, eggs, raisins and
hogs.
u,
was
this
Liabilities exceeded
-
bonds
185
to
of
188
Gain in Latest Week
There
,
as
the
Wholesale Food Price Index
Registered Moderate
expanded.
capacity is
figures for 1956
128,363,090 tons
,>/:/ 'iy.
with
toll
week.
1957
because
percentage
declined
more
small failures involv¬
among
ago.
1, 1957.
of Jan.
as
was
.
are
slight dip occurred
ing liabilities under $5,000,
bringing their
in the previous week and
50 a year
a year
86.7% and pro¬
duction 2,220,000 tons.
A year ago the actual
weekly production
was placed at 2,380,000 tons or
96.7%. j
higher
A
$100,000 for 15 of the week's casualties
steady.
Institute
88.0% of capacity, and 2,252,000 tons (revised)
The
1956.
less
when
1939
prewar
corn
operating rate of steel companies, having
96.1% of the steelmak¬
ing capacity for the entire industry will be an
average of 88.8%
of capacity for the week
beginning June 3, 1957, equivalent to
2,274.000 tons of ingot and steel for castings, as
compared with
is based
of
Casualties with liabilities of
$5,000 or
263 last week but were
almost even
size in
a
the
$47.17, concludes this trade journal.
ago
week
from
the
recovery it started several weeks ago.
Brokers report supplies are limited. In the
week ended
May 29,
the index on the
steelmaking grades was $47 a gross to:v-up 33
cents from the previous week. A month
ago, it was
The
Halsey, Stuart Group
Offers Gen. Telephone
I Co. of California ids.
J
stiffer rise
even
comparable
of 31
in
gaps
renewed
third quarter when 1958 model runs
get under way.
With steel wage costs scheduled to
rise an estimated 20 cents
an hour
July 1, it is almost a foregone conclusion that a
compen¬
sating price increase will follow "Steel" declared. Talk
has been
in terms of $5 to $7 a ton. Some
this potential.
on
and
emphasis by producers that
prices will be increased in July, this trade
weekly noted.
The metalworking publication said
that indications are there
will not be much additional
buying on automotive account this
quarter.
In fact, there
probably will not be much until late
■
the American people
that they are going
inventories
the
The Dun & Bradstreet wholesale
food price index for
May 28
registered $6.11.
This was 0.3% higher than the
$6.09 of the
preceding week and was unchanged from that of the
comparable
date a year ago.
Steel Production Expected This
Week to Reach
2,201,161 net tons of steel for ingots and
castings.
Helping to reverse the downward trend were
would be living
resume
Flint, Mich., and
¬
American
10%
in
'/■/:
46
halted
these
of the world and in
particular
are part of the free
world and
i
Budd
Monday of this week.
domestic
for
for
Imperial
a
249 occurred.
Lansing, Mich., have been down since
Tuesday
afternoon of the past week, and also will
get under way on Mon¬
day of the present week.
future than in the recent
past.
often
and
because of
the
that
economy may be somewhat more
susceptible to fluctuations in the
Too
Chrysler
•
week
en¬
fact, I
possibility
Industry
sion
successful to a reasonable
degree.
In
taking this position, I do not
subscribe to the view that reces¬
sion
and
depression have been
than
numerous
The State of Tiade and
very good
tertain
of the year, the toll was
slightly below the 238 a year ago, al¬
though remaining above the 203 in 1955.
Failures were
crisis.'
a
was
Retail
tered
registered above that of 1956.
trade
gains of
volume
in
New York
City the past week regis¬
1% to 3% above the like period of 1956, accord¬
ing to estimates by trade observers.
According to the Federal Reserve Board's index, department
store
sales in
25, 1957,
rose
New
York
City for the weekly period ended May
1% above that of the like period of last
preceding week, May 18,
For the four weeks ending
tered.
For
r^^rded
1956.
a
the
1957,
an
increase of 3%
May 25, 1957,
a
year.
was
gain of 4%
In the
reported.
was
regis¬
period of Jan. 1, 1957 to May 25, 1957, the index
rise of 4%
above that of the corresponding period in
36
The Commercial and Financial Chronicle
(2648)
:..
Thursday, June 6, 1957-
^ INDICATES
in
•
ITEMS
;/;;;///
•
retired or reserves, personnel and
public at large. Price—$1 per share. Proceeds
operating capital. Office — Colorado Springs,
Underwriter—None. Offering—Expected in about
tional Guard, active,
—For
Colo.
one
or
!r~
•'
/
--
stock
Denver, Colo.
'
&
Bros.
'
,
(6/19)
Hutzler
York.
and
Lehman
•
June
•
Merchandising, Inc., Tampa, Fla.
April 17 (letter of notification) 81,577 shares of common
stock (par 50 cents) being offered for subscription by
each
Underwriter—
Proceeds—For reduction of bank loans and working cap¬
Underwriter—The First Trust Co. of Lincoln, Neb.
$f Florida, Inc. (6/10)
May 1 filed 130,000 shares of class A common stock (par
$1) to be offered to stockholders of record about June 10,
1957; rights to expire about June 25. Price—$11.50 per
Proceeds—To retire bank loans, for expansion,
inventory purchases, to pay current accounts payable
end for working capital. Business—Manufactures build¬
ing materials and electrical appliances. Office — St.
Petersburg, Fla. Underwriter—Atwill & Co., Inc., Miami
Beach, Fla.
American Guaranty Corp.
May 13 (letter of notification) 38,651 shares of common
stock (par $1) to be offered to stockholders of record
May 17, 1957 on a basis of one new share for each three
shares held; rights to expire June 28, 1957.
Any unsub¬
and class B
"
common
..."
shares by June 28.
. - •<
:.
Under-
Income Fund, Inc., New York
May 24 filed 500,000 shares of capital stock (par
Price—At market.
Proceeds—For investment.
$1).
Under¬
writer—None.
ment
Adviser
York.
Burton H. Jackson
—
is President.
Columbia Gas System,
Invest¬
Securities Cycle Research Corp., New
★ American Metal Products Co., Detroit, Mich.
May 27 filed 125,000 shares of common stock
(par $2)
to be offered for sale under the
company's Employee's
Incentive Stock Option Plan.
lative
($6,000,000).
American Provident Investors
Corp.
50,000,000 shares of common stock (par one
cent). Price—$2 per share. Proceeds — For working
Feb. 15 filed
capital and general corporate
purposes.
Office—Dallas,
Underwriter—Peoples Securities Co., J. D. Grey,
New Orleans, John S. Tanner, of Dallas, and C. L.
Tex.
of
(6/6)
ders: Halsey, Stuart & Co. Inc."; Morgan Stanley & Co;;
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly). Bids—To be received up to noon (EDT)
June 6 at
on
•
120 East 40th
Street, New York 17, N. Y.
Comico
Corp., Memphis, Tenn. (6/20)
May 2 filed 750,000 shares of common stock. Price—$2
per share. Proceeds—To construct mill; for payment on
mining leases and royalty agreement. Underwriter—
Southeastern Securities Corp., New York.
Commercial
Credit Co.
(6/11)
May 28 filed $75,000,000 of senior notes due 1977. Price
—To be supplied by amendment. Proceeds—To pay off
short-term loans. •
Underwriters — The
F^rst Boston
Corp. and Kidder, Peabody & Co., both of New York.
exceed $300,000. Proceeds—To selling stockhold¬
Office—1406 East Jefferson Ave., Dallas, Tex. Un¬
'
Corsicana, Teat.
..Butler Brothers* Chicago, III.
May 28 filed 40,000 shares of common stock (par $15)
to be offered for; subscription by certain of the Ben
Franklin' franchise holders.
Piice-^-To be supplied by
-
-
chandise.
Business—Distributors
Underwriter—None.
.
of
general
:
mer¬
Conticca International Corp., Chicago, III. ;
/. current notes
-
for
new
equipment; and for working capital. - Under¬
Lexington Ave., New
writers— Allen Shaw & Co., 405
York 17, N. Y.; and Shaw &
Co., San Marino, Calif.
★ Continental Can Co., Inc.
Mjay 29 filed 343,250 shares of common stock (par $10)
to be offered under the "Employees' Stock Purchase
Plan
Batteries* Inc.
1," to employees of corporation and of certain of
subsidiaries.
its wholly-owned
March 28
(letter of notification) 14,000 shares of com¬
mon stock
(par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per share.
Proceeds
For machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter—None.
Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to present limited partners at the rate of
onei$l,000 unit for each $1,000 of his present investment;
then to public.
Price—$1,000 per unit. Proceeds — To
construct plant; to purchase machinery and equipment;
and to reduce outstanding demand notes. Business—Pro¬
duces electro-dynamic shaker and other vibration test
shares of class A conimon stock
(par $l>i Price—$5 per share. Proceeds
To discharge .
payable, including bank loans, *and long.
term debt in the total siim of approximately $If030,000;
.
May .22 (letter of notification) 5,840-shares of 6% prior
preferred stock. Price—At par ($25 per share). Pro¬
ceeds—For
the
purchase of the Barnstable pipeline.
Office—25 Lyanough Road, Hyannis, Mass. Underwriter
—Coffin & Burr, Inc., Boston, Mass.
C & D
Underwriter
competitive bidding. Probable
bidders^ Halsey, Stuart & Co. Inc;; White, Weld & Co.
and Paine, Webber, Jackson & Curtis (jointly); Morgan,
Stanley & Co. and;, the First Boston Corp. (jointly). Bids J
—To be received at Room 3000, 30' Rockefeller Plaza;New York 20, N. Y., up to 11:30 ami. <EDT) 6n June II.
determined by
March 13, filed 558,100
-
:
(6/11)
Proceeds—For 1957 construction program.
—To be
"
.
amendment.
Consolidated Natural Gas Co.
May 9 filed $25,000,000 of debentures due June 1, 1982.
•
Continental Gin Co., Birmingham, Ala.
April 30 filed 143,298 shares of common stock (no par)
being offered for subscription by common stockholders
of record May 27, 1957 at the rate of one additional
share for each share held
(with an oversubscription
—
★ Associated Fund, Inc., St. Louis, Mo.
May 28 filed $4,000,000 of 40,000 trust
certificates, full
paid ($4,000,000) and 60,000 trust certificates, accumu¬
Inc.
tfcie:/^feripihjBd
'"'•"TBuzzjtt-ds^Ba^Gas Co.//'
American
Underwriter—None.
May 8 filed $20,000,000 of debentures, series H, due 1982.'
Proceeds-7-For construction program. Underwriter—To
• Bulldog Mining Corp., Colorado Springs* Colo.
May 23 (letter of notification) 225,000 shares of common
stock (par 20-cents).
Price—$1 per share. Proceeds—
To explore presently owned properties, for development
costs and working capital. Office—2125 Hagerman St.,
Colorado Springs, Colo. Underwriter—None.
Corp.
.\ •/;;
Proceeds—From sale of shares
to sellers of warrants.
Manufacturing Co.
derwriter—Wm. B. Robinson & Co.,
Under¬
chares for 150,000 shares of Kwikset class B common
ctock. The offer is conditioned upon' its
acceptance of:
not less than 85% of the issued and
outstanding Kwikset:
writer—None.-
at 10 cents per warrant.
ers.
common stock of Kwikset
Locks, Inc., at the rate of one
share of American Hardware for each two Kwikset
com-'
fnon-shares and 55,500 American Hardware Common
common
Sutherlin, Ore.
not to
April 8 filed 118,000 shares of common stock (par
$12.50)
being offered in exchange for common stock and class B
.
Colonial Aircraft Corp., Sanford, Me.
March 29 filed 250,000 shares of common stock (par 100),5
to be issued upon exercise of warrants to purchase the
April 10 (letter of notification) 82,500 shares of common
(par one: cent). Price—At market. Total offering
writer—None.
Hardware
St., Birmingham 3, Ala.
stock
shares will be offered to public residents in
Rhode Island and Massachusetts.
Price—$7.50 per share.
Office—49 Westminster
American
construct
following number of shares and held as follows; Glick
& Co., Inc., underwriters of original offering,>140,000 /
shares; and by three individuals 110,000 shares, PriceShares to be offered at market. Warrants are exercisable
Browne Window
scribed
I.
Price—At
par ($25 per share).
Proceeds—
and operate facilities for manufacture of-'
anhydrous ammonia. Underwriter—Mississippi Chemical ;
Corp.; Yazoo City, Miss.
Bridgeport (Conn.) Gas Co. (6/7)
May 17 filed 34,572 shares of common stock (no par)
to be offered for subscription by common stockholders
of record June 7, 1957 on the b'&sis of one new share
for each seven shares held; rights to expire on June 21.
Price—To be supplied by amendment. Proceeds—To re¬
tire bank loans (presently outstanding $600,000) and for
general corporate purposes. Underwriters—Smith Ram¬
say & Co., Inc., Bridgeport, Conn.; and Chas. W. Scranton & Co., New Haven, Conn.
chare.
R.
materials.
Brantly Helicopter Corp.
April 8 (letter of notification) 21,818 shares of common
stock (par 50 cents). Price—$13.75 per share. Proceeds
—For
working capital.
Office—24 Maplewood Ave.,
Philadelphia 44, Pa. Underwriter—Drexel & Co., Phila¬
delphia,.Pa. No public offering expected. 4-av^; *
Office—509 West Mer¬
St., Providence,
-
Uranium
(letter of notification) 71,710 shares of common
stock (par 10 cents).
Price — 75 cents per share.
Pro¬
ceeds—To go to selling stockholder. Underwriter—L. D.
Friedman & Co., Inc., New York, N. Y.
—
Allied Products
for /
Feb. 11
Allied Finance Co., Dallas, Texas
April 22 filed $1,200,000 6% sinking fund capital deben¬
tures due 1972. Price
At 100% of principal amount.
★
and
be offered for sale to farmers and other Users of fertilizer
To
Underwriter—None.
Oil & Mine Corp.,
loans
/ Coastal Chemical Corp., Yazoo City* Miss.
May 1 filed 150,000 shares of class C'.common stock to
held; rights to expire July 30, 1957. Price—$11
share. Proceeds — To increase capital and surplus
Bonanza
bank
Harriman •: Ripley- & :
Corp. ,
May 14 (letter of notification) 600,000 shares of common
stock (par $1—Canadian).
Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of- V
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc., 160 Broadway,, New. York, v
•
shares
312 N. 23rd
—
,
_
Chess
12.
—
reduce
.
Underwriters—Stevens, White & McClure,
Office
Proceeds—To
working1 capital.
Underwriter
Co. Inc., New York.
April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11
per
•
,
amendment.
share for
Bankers Fire & Marine Insurance Co.
None.
ital.
new
one
rison, Wulbern, Inc., Jacksonville, Fla.; and J. Herbert
Evans & Co., St. Petersburg, Fla.
accounts.
Road, Valley Stream, L. I., N. Y.
of
First Florida Investors, Inc., Orlando, Fla.; Pierce, Gar¬
★ All-State Properties, Inc.
May 24 (letter of notification) 82,227 shares of capital
stock (par $1). Price—$1.90 per share. Proceeds—To ac¬
rick
rate
Inc., Tampa, Fla.; French & Crawford, Inc., Atlanta, Ga.;
LeRoy R. Haynes, of Pasadena, Calif., is
half interest in mortgage.
the
held, as of May 25, 1957; rights to
Price — $3.50 per share.
Pro¬
expansion.
Office—107-109 South Willow,
ceeds—For
President;
a
at
.
shares
Jline
on
Tampa, Fla.
proceeds from sale to promoters*. Proceeds—For general
corporate purposes.
Business—Purchase and resale of
oil fruits grown in Brazil and other countries. Under¬
quire
2.52053
expire
All America Expansion Corp., Pasadena, Calif.
May 3 filed 184,000 shares of common stock, of which
©2,000 shares are to be offered to public and 92,000 shares
Issued to promoters. Price—To public, $1 per share; no
writer—None.
stockholders
•
July 1, 1977 (convertible
including July 1* 1967).
Automatic
common
*
★ Chance Vought Aircraft, Inc.
6 filed $12,500,000
subordinated' debentures due
into common stock to andPrice — To jbo«supplied by <>
both of New
Brothers,
held; and the remainder will" be offered to
Price—At par ($1 per share).? Proceeds—
public.
loans, for'exploration and development Work,
construction and working capital, i Underwriter — None.
A. S. MacCulloch of Vancouver, B. C., Canada, is Presi¬
dent and principal stockholder.
Air
Products, Inc., Allentown, Pa.
May 1 filed 170,160 shares of common stock (par $1) be¬
ing offered for subscription by common stockholders of
record May 24, 1957 on the basis of one new share for
each six shares hfeld; rights to expire on June 10. Price
t—$28 per share. Proceeds—For general corporate pur¬
poses. including retirement of bank loans and for capital
expenditures.
Underwriters — Reynolds
&
Co., Inc.,
New
York;
Drexel
&
Co.,
Philadelphia,
Pa.;
and
Laurence M. Marks & Co., New York.
1//^
..
To repay
May 24 filed $20,000,000 of 20-year subordinated deben¬
tures due June 1, 1977. Price—To be supplied by amend¬
ment.
Proceeds — For working capital and to reduce
short-term bank borrowings. Underwriters — Salomon
10 cents). Price—50 cents per share.
obligation, purchase tools and for
working capital. Address—P. O. Box 322, La Junta,
Colo.
Underwriter—Mountain States Securities Corp.,
.
283,676 shares are to be offered for , subscription by *
stockholders at the rate of five additional shares'for each '
four shares
the
reduce
v/'t;
Carolina Mines, Inc., King* Mountain*; N. C. < '* •
March 29 filed 679,469 shares of common stock, of which '
.
Underwriter—APA,
Inc., another subsidiary, Minneapolis, Minn.
Associates Investment Co.
(par
Proceeds—To
writer—None,
tory of leases for present and future drilling programs;
Agricultural Equipment Corp.
March 1 (letter of notification) 500,000 shares of com¬
mon
present facilities and other corporate purposes.; Under¬
and for general corporate purposes.
•
Kan.
bonds, series six, and $3,000,000 of 1 iOe-year. :J5% Jitst ;
mortgage bonds, series seven. . Pirice—rAt par. Proceeds—
redeem outstanding bonds and/for impjoyement of
...
Underwriter—Williams, Widmayer & Co., Washington,
Inc., Topeka,
To
Apache Oil Corp., Minneapolis, Minn.
March 25 filed 50,000 shares of common stock
(par
$2.50). Price—$6 per share. Proceeds—For investment
in stock of APAF Co., a subsidiary; to carry an inven¬
inventory material, etc.; and for additional working
capital. Office — 4142 Howard Ave., Kensington, Md.
C.
Capper Publications,
March 25 filed $1,000,000 of five-y.ear 4%, first mortgage
firm, to retire bank loan; for expansion and
- Underwriter—Dean
Witter & Co., San
Francisco, Calif.
.,
u.
• ■ ■ ■.
Engineering Corp.
•
Efromson
-
insurance
April 4 (letter of notification) 100,000 shares of common
cents). Price—$1 per share. Proceeds—
improvements; purchase of equipment,
D.
(6/13)
working capital.
stock' (par 10
For leasehold
.
Co.
(W. R.)
C.
—
two months.
Acme Tool &
Ames
ISSUE
c.-;'
Underwriter—None. Robert C. Lewis^Philip •
and Thomas Gouzoula, all of Winchester, ;
Mass., are the general partners of this Massachusetts>
Limited Partnership. ///■.-•';
.V-V'.'T;'-'
of
May 13 filed 50,000 shares of capital stock (par $2). Price
To be supplied by amendment. Proceeds — Together'
with funds from private sale of $500,000 of notes to
not to the
REVISED
equipment.
Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
Edmonds,
Insurance Co.
April 18 filed 750,000 shares of common stock (par 50
cents) to be offered for subscription by military, Na¬
Academy Life
ADDITION»T;
SINCE PREVIOUS
privilege); rights to expire on June 17. Price—$30 per
Proceeds—For expansion program and machinery
share.
and
equipment.
Underwriters—Courts & Co.; Clement
The Robinson-Humphrey Co.,
A. Evans & Co., Inc. and
Inc., Atlanta, Ga.
;
Continental Mines & Metals Corp., Paterson, N.J,
April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—Forj exploratibix
Volume 185
Number 5644... The Commercial and Financial Chronicle
(2649)
and development of properties.
^Underwriter
T.M1 Lister <%,Co,r Boston, Mass. 'VV *
f
•••
Leward
—
•
t
M r-
-
U.
v
Continental
! :
Turpentine & Rosin Corp.
'j.
employees of the corporation at rate of 3/10ths of
'
of
>
stock for
new
each share held and
i
r;
$300 debentures
:
.-
(Bids
.
Miss.
'i
-
^
Underwriter—None..
Office
—
a.m.
(Offering
7;-
to
bonds
and for
due
1987.
(Hulme,
*
construction
program
sidiaries.Underwriter— To
of
be
Applegate
The
'VV
Ohio
Co.
&
Stroud
June 11
Commercial
Credit
Consolidated
'Bids
I
Kaiser
11:30
Industries
a.m.
EDT)
June
12
(Bids
11
June
Ames
(Bids
Summers
(Offering
.
.
;;
Office
:
June
17
Water
(The
Daniel
7V
Underwriter—Dominick ,& Dominick, New York.
Michigan Consolidated Gas Co.__
.
and
Dillon,
(Bids
11
/
%
;
(Lehman
.
EST)
a.m.
&
Co.)
11
to
T
Associates
share.
Proceeds
—
To
retire
short-term
debt
and
;
&
(Bids
Co.)
Texas
Eastern
Eastern
•
r
&
Price
—
purchase
To
be supplied
300.000
Continued
by
shares of
(Bids
page
38
to
be
11
noon
'
"ViVVV"'
Bonds
*/?
invited), $60,000,000
(Thursday)
Equip. Trust Ctfs.
(Bids
11
about $9,000,000
(Tuesday)
EDT)
$50,000,000
VVV'VV ^
(Tuesday)
(Minn.)
EDT)
a.m.
be
Bonds
'
$15,000,000
invited)
0
September 4
Blosser
&
McDowell)
V
Power
Common
&
EDT)
invited)
a.m.
'
invited)
$50,000,000
McDowell)
.
v
September 11
New
(Bids
Corp
Preferred
to
be
invited)
October 1
Debentures
Bell
Debentures
$30,000,000
(Tuesday)
$20,000,000
Corp..
(Wednesday)
Jersey Bell Telephone Co
$10,000,000
Corp.)
(Tuesday)
Bonds
be
Telephone Co
(Bids to be invited)
Debentures
$100,000,000
Utah Power & Light Co
(Bids
Utah Power
&
(Bids
to
be
Bonds
invited)
$15,000,000
Light Co
to
Common
Invited)
be
400.000
shares
$1,500,000
October
15
(Tuesday)
Indiana & Michigan Electric Co
$2,925,000
11
EST)
a.m.
Bonds
$20,000,000
(Monday)
EDT)
Bonds
815,000,000
Ohio Power
Corp
Hornblower
Common
&
Weeks)
164,604
shares
19
(Tuesday)
Bonds
Co
(Bids
11
a.m.
EST)
$28,000,000
Ohio Power Co
(Bids
Preferred
11
a.m.
^
L__JBonds
$15,000,000
Co
(Bids to
.
(Wednesday)
September 10
Debentures
Inc.)
be
i,
Debentures
$90,000,000
Louisville Gas & Electric Co
November
and
$18,000,000
(Tuesday)
a.m.
(Bids to
Delaware Power & Light Co
Inc.
..^.....Bonds :r
...
August 20
Equip. Trust Ctfs.
Co.,
:
.
Pacific Telephone & Telegraph Co
(Thursday)
June 24
(Blyth &
v.
.7
.
Debentures
Co
Securities
-i*"o
i_.Bonds
$4,965,000
EDT)
a.m.
Northern States Power Co.
:___Debentures
Erie RR.
'TM*-
Bonds
Telephone Co. of Pennsylvania—Debentures
Debt.
Common
Pacific Finance
on
11
July 30
Bell
Common
EDT)
Co.
•
.Equip. Trust Ctfs,
i '7
invited)
(Bids to be invited)
Preferred
Comico Corp.
(Bids
7
$10,000,000 Z1 7
Southern Pacific Co...
underwriting) 3,337,036 shares
Straus,
20
(Southeastern
be
July 23
(Bids
$70,000,000
Transmission
June
'
shares
(Dillon, Read & Co. Inc.) $15,000,000
^
to
Tampa Electric Co...
Southwestern
Texas
A
-
>.£
EDT)
(Wednesday)
July 25
Straus, Blosser
225,000 shares
Read
$20,000,000
Co
.Common,
Common
200,000
Transmission
(Dillon,
EDT)
;
$680,000
Co
a.m.
'
(Monday)
a.m.
-
shares
and
11
11:30
July 17
(Tuesday)
Utilities
(Bids
shares
.Bonds
Jersey Central Power & Light Co.__i..;
'V'V"';/' 7' (Bids 11 a.m. EDT) $15,000,000
Duke
Montana-Dakota
376,600
(Wednesday)
and
Brothers
invited)
Bonds
a.m.
Service
(Bids
Fairbanks, Morse & Co.
(6/17-21)
May 27 filed $15,000,000 of convertible subordinated de¬
*
.
: -
Kerr-McGee Oil Industries, Inc....
•
bentures due June 1, 1972.
amendment.
Proceeds—To
Electric
(Bids
$20,000,000
(Lehman
be
Great Northern Ry
(Salomon Bros. & Hutzler and Lehman Brothers) $20,000,000
for
working capital. Underwriter—Fulton, Reid & Co., Inc.,
Cleveland, Ohio.
&
Common
Kerr-McGee Oil Industries, Inc
Brothers
11
(Bids to
Investment
(Lehman
Common
to
.
:
•'
.•'»
>
(Wednesday)
July 15
(Bids
invited)
June 19
\.-i
Debentures
Pacific Gas & Electric Co—
(Offering to stockholders—no
funds,
^ Erie Resistor Corp., Erie, Pa.
June 5 filed 100,000 shares of 90-cent convertible prefer¬
ence
stock, 1957 series (par $12.50). Price — $15 per
be
Preferred
...
Co
stockholders—bids
Bonds
shares
Airlines, Inc
March
Price—$1,010 per unit. Proceeds—Together with other
to purchase, directly or through subsidiaries,
drive-in theatres; to acquire other
properties, etc.; and
for working capital. Underwriter—None.
Lemon
Southern Bell Telephone & Telegraph Co.
'Bids
Co
Pierce, Fenner & Beane) $10,000,000
West Penn Power Co
:
(May. be .Morgan Stanley & Co.; Drexel & Co.;' and
Glore, Forgan & Co.) $25,000,000
World
i
,
,
•
EDT)
a.m.
-
;is
(Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.; *
W
and Laurence M. Marks & Co.) $30,000,000
:
$661,040
....
Public Service Electric & Gas Co
Trans
Philadelphia, Pa.
14 filed $375,000 of 10-year 6% debentures due
1, 1967; 3,750 shares of 7% cumulative preferred
stock (par $100); and 7,500 shares of common stock (par
$1) to be offered in units of $500 of debenture, five
shares of preferred stock and 10 shares of common stock.
Co.)
Common
June 18
j
Eric Corp. of America,
&
Gulf States Utilities Co
(Bids
Bonds
$15,000,000
Washington Water Power Co
Texas
Johnston,
,__i
50,000
486,058
(Charles Plohn
Edgcomb Steel Co., Philadelphia, Pa.
(letter of notification) 2,573 shares of common
stock (par $10) to be offered for subscription by em¬
ployees. Price—$19.43 per share. Proceeds—For work¬
ing capital. Office—D St and Erie Ave., Philadelphia,
May
7..."
/
Seaporcel Metals, Inc...
May 23
Engelberg Huller Co., Inc.
May 6 (letter of notification) 4,084 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record May 15,1957 on a 3-for-10 basis; rights
to expire June 15. Price—$25 per share. Proceeds—For
expansion of belt grinder division. Office—831 West Fa¬
yette St., Syracuse, N. Y. Underwriter—None.
Reeves
to
(Offering to stockholders—underwritten by Morgan Stanley
-
26.
Underwriter—None.
'
$30,000,000
Inc.
Brothers)
i
Pa.
by
Securities
Outboard Marine Corp.....
*
EDT)
Jpc.) $15,000,000
Union
Microwave Associates,
•
shares
(Tuesday)
July 10
Employees* Corp^iXw-Debentures V
stockholdors-^underwritcen
Eastman
584,176
Pacific Power & Light Co..
Preferred
$250,000 '
Government
Co.
underwriting)
(Bids to be invited) $30,000,000
-
> (Offering
Debentures
(A- C. Allyn & Co.,
to
t
(Monday)
Co
Fairbanks, Morse & Co
(Offering
(Friday)
Service
f.„)../(Merrill Lynch,
irV
Common
Co.)
>
...
.jJVisconsin Telephone
...Common
Milwaukee
'
217,286 shares
(Monday)
a.m.
,-5
$6,450,000
common stock (par $7.50)
being offered for subscription l?y stockholders of record May 29, 1957,Oh the basis of one share for each six com,rifon shares held and one share for each three preferred •
shares held; rights'to expire on June 12, 1957.^ Price —
$13.75 per share. * Proceeds —For corporate purposes. -.
:{
July 9 (Tuesday)
250,080 shares
.
Duquesne Light Co. (6/26) V
May 22 filed 265,000 shares of common stock (par $10).
Proceeds—To Standard Shares, Inc. Underwriter—To be
determined by competitive bidding. Probable bidders:
Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner &
Bean (jointly); Kuhn, Loeb & Co. and Smith, Barney &
! C.. (jointly); The First Boston Corp. and Lehman Brcthers (jointly); Kidder, Peabody & Co., Stone & Webster
Securities Corp. and White, Weld & Co. (jointly). Bids
—To be received by Standard Shares, Inc., 15 Broad
Street, New York 5, N. Y., up to 11 a.m. (EDT) on June
11
V--
^Texas Electric
by
$5,000,000
(Thursday)
Common
(Bids
Consolidated
-
V.
Bonds
Co.__
Co.)
$35,000,000
Rochester Gas & Electric Corp
shares
stockholders—underwritten
27
to stockholders—no
;
-
•
to
invited)
;
-
..Bonds V
Debentures
July 1
(Bids
1
50,000
PDT)
v
Co
a.m.
July 2
(Offering to stockholders—to be underwritten by Hornblower
<fc Weeks)
484,276 shares
"V'/V
:
.
(Offering
$300,000
-Timken Roller Bearing Co
Ave., N. W., Washington 5, D. C. Under-
Washington, -D. C.
Co.)
EDT) 265,000 shares
Gas
(Offering to stockholders—may be underwritten by
The First Boston Corp.) $120,000,000
Equip. Trust Ctfs.
be
to
Gyroscope
.
/
Mountain States Telephone & Telegraph__Common
(Thursday)
&
: *>
,
.1-
City^Bank of New York...Common %
^VV-V^V
Common
&
V • Dorr-Oliver, Inc.
May 7 filed 173,970 shares of
,
/I "i J'
'»
225,976 shares
Co
Witter
.*
_
Common
June 28
First National
Loeb,
$30,000,000
Norfolk & Western Ry
(letter of notification) 298,000 shares of comlmon stock (par 10 cents). Price—$1 per share. Proceeds
—For exploration and development; road improvement;
<
(W. R.)
(Dean
Dominion Resources Development Co.
writer—Landrum Allen & Co., Inc.,
?•'.
h
:May 10
,
13
....'X'
•;
-
(Offering to stockholders—may be underwritten)
Common
EDT)
a.m.
V
?
Tampa Electric Co
.
Inc.)
;
:
...
June
Common
$6,450,000
Co..
•
V*
Debentures
(Wednesday)
a.m.
8:30
Thriftimart, Inc.
Common
&
V.
530,712 shares
Corp—
•'(Bids 11
(Wednesday)
Randall
EDT)
p.m.
H. Walker & Co.). $3,000,000
(Bids
$25,000,000
Michigan Wisconsin Pipe Line Co
Wood, Struthers & Co. (jointly); White,
Shields & Co. (jointly); Francis I. du
'Pont & Co.'and Reynolds &
Co. (jointly); Lehman
Brothers.
Bids—Tentatively scheduled to be received
up to 11:30 a.m. (EDT) on June 24 at 600 Market Street,
Wilmington 99, Del.
general corporate purposes and working capital.
"(Bids 3:45
Petroleum
Southern California
Debentures
Lake Lauzon Mines, Ltd.
(Steven
■
:
♦
Common
1,200,000 shares
(Reynolds & Co-., Ino. .and Lester,- Ryons & Co.)
(Offering to stockholders—may be negotiated)
by comStuart &
'•
Common •"
June 26
stock
common
Portland Gas & Coke Co
loans
Weld & Co. and
—1129 Vermont
i Zapata
.C./:-v(G.
:
Equip. Trust Ctfs.
noon
..Bonds
Duquesne Light Co....
...
& Hutzler and
;
,
~
Co.,
Peabody & Co) $75,000,000
EDT)
)
■»
.
$20,000,000
.(Bear, Stearns & Co.)
'
•
...
Co
Corp
William
Tidelands, Inc.____.._
Notes
Gas
and
(Hugo) Corp
/•
&
(The First Boston Corp.;. Dean Witter &
Co.; and Carl M.
Rhoades & Co.) 900,000 shares
petitive bidding.
Probable bidders: Halsey,
Co. Inc.; Eastman, Dillon, Union Securities &
Co.; Mer¬
rill Lynch, Piesaey* Fenner & Beane, and
Kidder, Peabody & Co. (jointly); Kuhn, Loeb & Co.; Salomon Bros.
.
of
EDT)
noon
.
:.Debentures "
White, Weld & Co.;
«& Co.) $40,000,000
Blair
.
..
..
and its sub¬
determined
*
'
-
(Tuesday)
and Kidder,
Natural
*
:
■
Co
(The First Boston Corp.
(Bids
company
...
Stinnes
Class A Common
New York Central RR
bank
*
.
Inc., The Milwauke Co.,
Co., Inc.) $1,700,000 of
debentures and 170,000 shares
shares
retire
.
Rimrock
$19,000,000
&
i
*
;
Corp.
Corp.;
(Bids
Humphrey,
and
$10,000,000
Puget Sound Power & Light Co
Reading & Bates Offshore Drilling Co.._Debs.& Stk.
(6/24)
Proceeds—To
'K,'.:;
Fiqance
..Bonds
EDT)
noon
Debentures
& Co.)
(Bids to be invited) $1,130,000
Higginson
*
-May 28 filed $15,000,000. of first mortgage and collateral
trust
v
(Lee
stockholders—underwritten- by Atwill
Inc.) 130,000 shares
(Bids
held;
"rights to expire June 14, 1957. Price—At par ($10 per
share). Proceeds—For a construction program. Office—
112 W.'Elm St., Sycamore, 111. Underwriter—None.
Delaware Power & Light Co.
f
Household
V/V:VV/-
.
April 25 (letter of notification) 22,025 shares of common
stock to be offered to stockholders of record May
1, 1957
:
Common
Metropolitan Edison Co
DeKalb & Ogle Telephone Co.
-;
;
(Monday)
Allied Products of Florida, Inc.
4
!
and Allen
Chicago & Eastern Illinois RR—Equip. Trust Ctfs.
:
:
150,000 shares
(Friday)
June 10
.
Daybreak Uranium, Inc., Opportunity, Wash.
»r May
7e filed 631,925 shares of: common stock (par 10
cents). Price — At market (approximately 53 cents per
•; share)/ Proceeds—To
selling stockholders. Underwriter
Herrin Co., Seattle, Wash.
...
w,
seven
V
...Common
-
share for each
v
-
"
new
:
(Offering to stockholders—underwritten by Smith,
Ramsay &
Co., Inc. and Chas. W. Scranton & Co.) 34,572 shares
.*<•"
com-
(Tuesday)
;
$15,500,000
Bridgeport Gas Co
stock
the basis of one
x
;
t
on
:
(Lee Higginson Corp.
Bonds
EDT)
June 7
ate-purposes. Office—83 Campfield St., Irvington, N. J.
jUnderwriter—Roth & Co., Maplewood, N.
i; ; r
.
11
June 25
rrj
Barium Steel Corp
J
.
(par one cent). Price — 50 cents per share.
Proceeds — For diamond drilling on company's
lands,
prospecting expenses, working capital and other corpor¬
*
$20,000,000
(Smith, Barney & Co.)
-
.Cougar Mine Development Corp.
580,000 shares of
mon
EDT)
__
;
Laurel,
March 15- (letter of notification)
V
V'T
2^
tat-
V4":- \
xv
Debentures
Trane Co.
Price—Of stock, $15 per share;
and of debentures at face amount, Proceeds—For construction purposes in
Shamrock, Fla.
noon
Georgia Power Co
-
(Thursday)
System, Inc—
(Bids
for each 100 shares held.
'
Gas
-
share
a
Columbia
;
.
•/debentures dated March 31, 1957 to be offered in denomillations. Of $100 to present stockholders, officers and
HA L Erll, D. A JL»
$V"~
June 6
11,400 shares of capital
(par $5)/and $125,000 of 20-year 5% subordinate
stock
NEW-ISSUE
1
:
.
March 12. (letter of notification)
•
37
EST)
$7,000,000
'V
•
38
The Commercial and Financial Chronicle...
(2650)
Continued jrom page
;■
37
'
'..f.
v
d
r
stock presently owned by Pennshare. Underwriter—A. C. Allyn
Inc., Chicago, 111.
company's
common
Texas Corp. at $50 per
& Co.
Foods Corp., Lynchburg, Va.
Famous Virginia
April 29 (letter of notification) 12,640 shares of common
stock (par $5) and $100,000 of convertible 6% deben¬
tures due 1967 of which 7,000 shares of common stock
be offered in units of $500
stock; the re¬
and $70,000 debentures are to
debentures
of
and 50 shares of common
maining common stock and debentures are reserved for
Price—$1,000 per unit. Proceeds—To
rescission offer, etc.
buy equipment and for general corporate purposes. Of¬
fice—922 Jefferson St., Lynchburg, Va.
Underwriter-
Whitney & Co., Inc., Washington, D. C.
Corp., Jackson, Miss.
First Mississippi
April 10 filed 10,000,000 shares of common stock (par
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
time prior to Nov. 30, 1959 at $4.50
tional shares at any
per
share.
The price of the remaining 2,500,000 shares
$5 each, of which 500,000 shares are to be re¬
served for exercise of options to be granted to directors,
will
be
and
officers
Proceeds — For industrial and
Mississippi and the South.
employees.
development
Underwriter—None. |
of
business
4
acquire
interest in
Price—$1,000
by
Co. Inc.;
Foster-Forbes Glass Co.,
Marion,
Ind.
(letter of notification) 8,339 shares of common
(par $1.50). Price—$25 per share. Proceeds—To
Underwriter—RaffensHughes & Co., Inc.; Indianapolis, Ind.
perger,
General Aniline & Film Corp.,
New York
Jan. 14 filed 426,988 shares of common A stock
(no par)
1,537,500 shares of common B stock (par $1). Pro¬
the Attorney General of the United States.
and
ceeds—To
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The
First Bos¬
ton
Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and Glore, Forgan & Co.
(jointly). Bids —Had been
scheduled to be received up to 3:45 p.m.
(EDT) on May
13 at Room 654, 101 Indiana Ave., N. W., Washington 25,
D. C., but bidding
• General
has been postponed.
Automatics
Corp., Atlanta,
Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road, N. W.,
Atlanta, Ga. Underwriters—E. P. Lacey, Jr., an officer
and promoter; hnd A. B. Simms & Associates, Atlanta,
Ga.
General Credit,
Inc., Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit.
Proceeds—
Gibbs
May
Shops of America, Inc.
Jan. 21 (letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
share.
Proceeds — For additional discount department
store operation; to increase the number of stores; and
for working capital. Office—41 Stukely St., Providence,
R. I.
Underwriter—Bruns, Nordeman & Co., New York,
preference stock ($50 liquidating value) being offered
subscription by common stockholders of record June
for
5, 1957 on a l-for-6 basis and by holders of $1.60 cumu¬
lative preference stock on a l-for-9 basis; rights to ex¬
pire on June 24, 1957. Price—$50 per share. Proceeds—
To increase working capital.
Underwriters—The First
Boston Corp. and Tucker, Anthony & R. L. Day, both of
New York.
General Telephone Corp., New York
April 26 filed $44,520,600 of 4^% convertible debentures
due
1977, being offered for subscription by
holders
of record
debentures
for
May
each
rights to expire
on
16,
30
1957
shares
June 10.
the
cn
of
common
stock¬
basis of $100 of
common
Price—At par.
stock
$100
For investment in and
temporary advances to telephone
subsidiaries and for general corporate purposes. Under¬
writers—Paine, Webber, Jackson & Curtis and Stone &
Webster
Securities Corp., both of New York; and Mit-.
chum, Jones & Templeton, of Los Angeles, Calif.
•
General Telephone Corp., New York
(6/14)
May 24 filed 1,480,787 shares of common stock (par $10)
and 170,000 shares of 5.28% convertible preferred stock
tpar $50) to be offered in exchange for common and
preferred stocks of Peninsular Telephone Co. on the
basis
of
1.3
shares
of
General
common
for
each
share
Peninsular
of
of
debentures for
each
20
of
shares
com¬
stock
held; rights to expire on July 8, 1957. Price
of principal amount.
Proceeds — For working
Underwriters—Johnston, Lemon & Co., Wash¬
ington, D. C.; and Eastman Dillon, Union Securities &
Co., New York.
100%
Gulf States
Utilities Co.
(6/18)
May 17 filed 200,000 shares of
common
stock
(no par).
Proceeds—To repay a portion of outstanding bank loans.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Merrill
Lynch, Pierce, Fehner &
Beane and Lehman Brothers (jointly); Stone & Webster
Securities Corp.; Carl M. Loeb, Rhoades & Co.
Bids—
To
be
Chase
received
to 11 a.m. (EDT) on June 18 at
Bank, 40 Wall Street, New York 15,
up
Manhattan
April 30 (letter of notification) 6,105 shares of common
stock being offered to stockholders of record May 24,
1957 on the basis of one new share for each eight shares
held; rights to expire June 21, 1957. Price—At par ($20
per share).
Proceeds—For construction and equipment
and
installation
of
incentive wage plan.
an
Office—287
Underwriter—None.
Homestead Ave., Hartford, Conn.
it Haydu Electronic Products, Inc."1
June 3 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office—1426 West Front
St., Plainfield, N. J. Underwriter—Berry & Co., Plainfield and
Newark, N. J.
Holly Corp.,
New York
Jan. 25 filed 406,638 shares of 50-cent convertible
pre¬
ferred stock, series A (par $5) and 2,476,116 shares of
stock
common
(par 60 cents), of which all of the pre¬
763,011.3 shares of common stock are being
exchange for Mount Vernon Co. preferred
and
in
stock
the basis of one Holly series A
406,638 shares of Mount Vernon
preferred stock and 2 V2 shares of Holly common stock
for each of the 305,204.52 shares of Mount Vernon com¬
common
for
each
Of
stock.
mon
shares
of
Corp.
Georgia Casualty & Surety Co.
the
being
are
remainder,
offered
to
210,000
certain
Holly
common
holders
of
35,000
shares of Van Dorn Iron Works Co. common stock
six-for-one
basis; 38,333 Holly common shares
offered to certain finders, 60,000 shares to certain
on
a
are
ven¬
dors
of
property; 1,016,595 shares will be reserved
against conversion of preferred stock; and the remain¬
ing 388,176 are to be reserved for possible issuance at a
future
Iron
date in
Works
July 10.
24.
exchange for 64,696 shares of Van Dorn
common
stock.
The
Underwriter—None.
offers
will
expire
on
Statement effective April
-xl/.'/-
.
■
Holy Land
Import Corp., Houston, Texas
(letter of notification) 100,000 shares of common
Feb. 27
stock.
Price—At par
($3
&
per
working capital,
Co., Houston, Tex.
ventory,
share).
etc.
Proceeds—For
in¬
Underwriter—Benjamin
To
reduce
bank
loans.
Underwriters
—
Lee
Higginson
Corp. and White, Weld & Co., both of New York, N. Y.;
and William Blair &
Co., Chicago, 111.
* Household
May 29
Gas
Service,
Inc., Clinton, N.
Y.
5%
of
debt
and
working capital. Underwriter
Valley Investing Co., Inc.,.Utica, N. Y.
—
Mohawk
50
Price—$1 per share. Proceeds—For drilling and
completion of test wells; for acquisition and exploration
properties; and for working capital. Under¬
writer—None. W. Clay Merideth is President^
★ Institutional
Ga.
Underwriter—None.
Fairlie
St., N. W., Atlanta,
Dan D. Dominey is President.
Income
Fund, Inc. (N. Y.)
May 29 filed (by amendment) 800,000 additional shares
common stock (par $1).
Price—At market. Proceeds
of
—For
to
(par
one
and
equip
for
working cap¬
supplied by amend¬
be
I.¬
International Fidelity Insurance Co., Dallas, Tex.
100.000 shares of common stock (no par)
March 28 filed
be
to
offered
rate of
one
subscrintion
for
share for each
new
bv
stockholders
shares held.
seven
—To be supplied
by amendment.
ing capital, etc.
Underwriter—Franklin
at
the
Price
Proceeds—For work¬
Securities
Co.,
Dallas, Texas.
Interstate
April
Fire &
Casualty Co.
shares of
subscription by
(EH.)
stock being of¬
stockholders of record
common
common
on the basis of two new shares for each
held; rights expire on June 10. Price — $21
per share. Proceeds—For working capital. Underwriter
—None. Statement effective May 23, 1957.
1957,
1,
five shares
Investors Variable
Payment Fund,
Inc.
March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬
ment
Manager
—
Investors
Diversified
Minneapolis, Minn., which will also act
American
Israel
Industrial
Services, Inc.,
distributor.
as
Development
Bank,
Ltd.
Feb. 13 filed $2,500,000 of perpetual 6%
Price
110%
—
pounds
of
debenture stock.
Proceeds—To be converted into
par.
and will
be
used
as
working
in
Israel.
Office—Tel Aviv,
Securities Corp., New
capital to
Israel. Underwriter—Israel
York.
it Isthmus Steamship & Salvage Co., Miami, Fla.
21 (letter of notification) 300,000 shares of com¬
stock (par 10 cents). Price—$1 per share. Proceeds
—To purchase a ship and for working capital.
Under¬
writer—Anderson Cook Co., Inc., Palm Beach, Fla. /
May
mon
★ Jersey Central Power & Light Co. (7/16)
29 filed $15,000,000 of first mortgage bonds due
1987.
Proceeds—To repay bank loans and for construc¬
May
tion program.
petitive
Underwriter—To be determined by com¬
Probable bidders: Halsey, Stuart &
bidding.
investment.
Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
&
Co.; Salomon Bros. & Hutzler and Merrill
Lynch, Pierce, Fenner & Beane (jointly). Bids—To be
received up to 11 a.m. (EDT) on July 16 at office of
General Public Utilities Corp., 67 Broad Street, New
York 4, N. Y.
rities
Industries
Kaiser
Corp.
(6/11)
May 21 filed 900,000 shares of common stock (par $4).
Price
To be supplied by amendment. Proceeds — To
—
Underwriters — The First Boston
Witter & Co., San Francisco,
Calif.; and Carl M. Loeb, Rhoades & Co., New York.
selling stockholders.
Corp.,
New
York; Dean
(6/19-20)
★ Kerr-McGee Oil Industries, Inc.
May 31 filed $20,000,000 of sinking fund debentures due
June 1, 1977. Price—To be supplied by amendment. Pro¬
ceeds—To retire bank loans and for capital expenditures.
Underwriters—Lehman Brothers, New
Blosser &
York; and Straus,
McDowell, Chicago, 111.
(6/19-20)
★ Kerr-McGee Oil Industries, Inc.
May 31 filed 225,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — For
capital expenditures. Underwriters
New
II
—
Lehman Brothers,
York; and Straus, Blosser & McDowell, Chicago, 111.
Lake
Lauzon
Ltd., Toronto, Can.
(6/12)
shares of common stock (par $1).
share.
Proceeds—For drilling ex¬
Mines
March 18 filed 750,000
cents
per
equipment, working capital and other corporate
penses,
Underwriter—Steven Randall & Co., Inc., New
purposes.
York.
★ Life Insurance Investors, Inc.
3 filed 400,000 shares of common
June
market.
Price—At
Proceeds—For
stock
(par $1).
investment.
it Louisiana-Delta Offshore Corp. (6/26)
6 filed 346,289 shares of common stock, of which
100,008 snares are to- be sold for tne account of the
June
company
and 246,281 shares for account of selling stock¬
holders.
Price—To
retire
be
supplied by amendment.
Pro¬
debentures now outstanding
$175,000
for
general corporate purposes.
Smith, Barney & Co., New York.
and
(par
cents).
agents, then to the public. Price—$30 per share. Pro¬
ceeds — To expand and finance the company's regular
Office—70
stock
common
Proceeds—To
launderettes and
Underwriters—Names
ital.
ceeds—To
of additional
of business.
share.
per
super
ment.
Price—40
it Household Finance Corp. (6/25)
4 filed $40,000,000 of
sinking fund debentures due
1982. Price—To be supplied
by amendment. Proceeds—
June
May 10 (letter of notification) 10,000 shares of common
stock (par $5) to be offered first to stockholders and
line
five
on
Ignacio Oil & Gas Co., Denver, Colo, r
May 20 filed 650,000 shares of common stock
er-Managers— Paine,
& Webster Securities
Stone
Duplex Corp., San Francisco* Calif.
500,000 shares of
Price—SI
cent).
establish
the
expected to remain open for
period of 30 days. Deal¬
Webber, Jackson & Curtis and
filed
21
Co.
(letter of notification) $75,000 of first mortgage
sinking fund bonds due May 1, 1965. Price—90% of
principal amount. Proceeds—For equipment repayment
a
International
Dec.
extend the medium and long-term credits to enterprises
Hartford Special Machinery Co.
common, and one-half share of General
share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
of preferred stock will be made unless at least 80% of
the Peninsular preferred stock is exchanged.
Offer is
preferred
May 21, 1957 on the basis of one new share for each 10
held; rights to expire on June 10, 1957. Price—
Proceeds—For working capital. Under¬
writer—Morgan Stanley & Co., New York.
$220 per share.
Israel
New York.
I
Under¬
program.
International Business Machines Corp.
May 1 filed 1,050,223 shares of capital stock (no par)
being offered for subscription by siocKhoiders of record
fered for
of
construction
For
rate
mon
held;
Proceeds—
—
March 29 filed 20,000
share
May 17 filed 194,200 shares of $3 cumulative convertible
Proceeds
(6/17)
May 24 filed $661,040 5% convertible capital deben¬
tures due June 30, 1967, to be offered for subscription
by common stockholders of record June 10, 1957 at the
and
Precision Equipment Corp.
one
on
shares
Corp.
Gob
offered
General
Moulding
$1,000,000 of 6% convertible debentures
due March 31, 1967.
Price—At par. Proceeds—To in¬
crease
company's activities and for working capital.
Office—Henderson, Ky. Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind.
named.
•
Automatic
filed
22
ferred
Application is still pending with SEC.
share for each six shares held; rights to
June 11. The remaining 12,917 shares are be¬
ing offered to employees and others. Price—$7.50 per
of
expire
writer—White, Weld 8c Co., New York.
For expansion and working capital.
Underwriter—None
Offering to be made through selected dealers.
basis
share.
Dillon, Union Securi¬
ties & Co. (jointly); Harriman, Ripley & Co. inc. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
on June 6 at office of Southern Services, Inc., Room 1600,
250 Park Ave., New York 17, N. Y.
to four selling stockholders.
go
Co.
Morgan Stanley & Co.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Shields & Co. (jointly); Equit¬
capital.
May 21
Gas
May 6 filed 58,067 shares of common stock (par $1), of
which 45,150 snares are being offered for
subscription
by common stockholders of record May 24, 1957, on the
able Securities Corp. and Eastman
—
Underwriter—None.
stock
1, 1987.' Proceeds — For construction program and for
purchase of shares of capital stock of Southern Electric
Generating Co.
Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Government Employees Corp.
per certificate.
Proceeds—To
purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.
Trust.
the
Intermountain
bonds due June
N. Y.
Pompano Beach, Fla.
filed 850 certificates of beneficial
Florida Trust,
March
Georgia Power Co. (6/6)
May 10, filed $15,500,000 first mortgage
Thursday, June 6, 1957
Marion
March
28
Finance
filed
debentures, due
Corp., Ardmore,
Underwriter
—
Pa.
renewable subordinated
demand May 1, 1967, without de¬
$250,000 of 6%
upon
mand
May 1, 1972. Price—At par (in units of $100 and
$500 each). Proceeds—For working capital. Office—17
W. Lancaster Ave., Ardmore, Pa. Underwriters—-Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New
York; and Berry & Co., Plainfield, N. J
Volume
185
Number 5644
...
The Commercial and Financial Chronicle
(2651)
-
McFaul (Claude) Corp.
April 18 (letter of notification) 10,000 shares of common
Siuck.
jrij.ee—rvt par ^iu per snare).
Proceeds—For ac¬
quisition of production machinery and equipment; pur¬
of
chase
of
New
materials
and tooling; advertising; patent ex¬
working capital.
Office—560 Mills Tower
Building, San Francisco, Calif. Underwriter—Financial
Investors, Inc., Sacramento, Calif.
^
Brunswick
(Province
1, 1982.
of)
Proceeds—To
it McGttaw-Edison Co., Elgin, III.
participations in the company's profit
sharing plan, together with 400,000 shares of common
be
'
Metropolitan Edison Co. (6/10)
April 30 filed $19,000,000 of first mortgage bonds due
Proceeds—To repay
bank loans and for construc¬
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp.
Bids—To be received up to noon (EDT)
,on June
10 at offices of General Public Utilities Corp.,
67 Broad Street, New York, N. Y.
>
tion program.
advanced
to
Utah.
1S82.
Proceeds—To
bank loans and for
repay
to
The
New
repay
Bruns¬
■
Lynch, Pierce, Fencer & Beane; Stone & Weoster Se¬
curities Corp. Bids—To be received at 90
Broad Street,
New York, N. Y.,
up to noon (EDT) on June 25.
Marine Corp.
one
-
new
share for each 15 shares held;
rights to expire on July
1, 1957. Price—To be supplied by amendment. Proceeds
—For capital expenditures.
Underwriter—Morgan Stan¬
ley & Co., New York.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
White, Weld & Co. and Lehman Brothers (jointly). Bids
•—To be received up to 11 a.m. (EST) on June 17 at 415
Clifford St., Detroit 26, Mich.
Michigan Wisconsin Pipe Line Co. (6/12)
May 15 filed $30,000,000 of first mortgage pipe line bonds
due 1977. Proceeds—Together with $3,000,000 from sale
both of New York, N. Y., and Los
of
Pacific Natural Gas Co.,
&
Co.
common
at
offices of
to
up
11
American Natural
a.m.
Gas
warrant
to
purchase
equipment.
construction
Underwriters—Names
program.
to
phrey,
mobile
platform
and
Inc.,
The
Milwaukee
Co.,
The
related
&
Ohio
Hum¬
Co.
and
Stroud & Co., Inc.
be
Resource Fund,
supplied by amendment.
(EDT) on June 12
Co., 165 Broadway,
shares.
Price—To be
Proceeds—To be applied to the
common
Underwriters—Hulme, Applegate
—
for
15
supplied by amendment.
purchase of off - shore
—
Inc.; The First Boston Corp.; Blyth & Co., Inc.
■Bids—To be received
Angeles, Calif.
Longview, Wash.
May 28 filed $1,000,000 of subordinate interim notes due
1963 and 20,000 shares of common stock
(par $1) to be
offered in units of a $50 note and one common
share.
Price
To be supplied
by amendment. Proceeds
To
repay short-term debt and other current liabilities and
stock to parent, American Natural
pay $25,000,000 of bank loans and for con¬
struction expenses.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
$3,GC0,C00
Gas Co., to
,
Tulsa, Okla. (6/10-12)
May 21 filed $1,700,000 of 6% subordinated sinking fund
debentures due June 1, 1967, 170,000 shares of common
stock (par 20 cents) and stock
purchase warrants cover¬
ing 225,000 shares of common stock to be offered in
units of $100 of debentures, 10 shares of stock
and one
loans and for working
capital. Under¬
Blyth & Co., Inc. and Hornblower &
Weeks,
—
,
Reading & Bates Offshore Drilling Co.,
short-term
writers
i
Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock
(par $1)
of which 200,000 shares are to oe
offered to public and
20,000 shares issued to underwriter. Price—$5
per share.
Proceeds—To retire $125,000 of
outstanding 15% deben¬
tures as well as a $173,180 debt to
Trans-Union Produc¬
tions, Inc.; and for working capital. Business—Tele¬
vision releases.
Underwriter—E. L. Aaron & Co., New
York.
it Pacific France Corp., Los Angeles, Calif.
(6/24-25)
May 29 filed 164,604 shares of common stock (par
$10).
Price—To be supplied by amendment.
Proceeds—To re¬
duce
filed
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc. and
Lehman
Brothers
(jointly); The First Boston Corp.; Merrill
.
holders of record June 14, 1957 on the basis of
con¬
share.
per
Underwriter—
Beane, New York.
Puget Sound Power & Light Co. (6/25)
May 17 filed $20,000,000 of first mortgage bonds due
July 1, 1987. Proceeds—To repay bank loans. Under¬
and
(6/17)
486,058 shares of common stock (par 30
cents) to be offered for subscription by common stock¬
program.
program.
York, for offer to stockholders.
Proceeds—For construction program.
Underwriter—Mer¬
rill Lynch, Pierce, Fenner &
bank loans.
May 24 filed
Michigan Consolidated Gas Co. (6/17)
May 22 filed $30,000,000 of 25-year first mortgage bonds
due
Commission
Oil Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of com¬
mon
stock.
Price—At par ($10 cents per
share). Pro¬
ceeds—For development of oil and
gas properties. Office
—725 Judge Bldg., Salt Lake
City, Utah. Underwriter—
Mid America
Securities, Inc. of Utah, Salt Lake City,
Outboard
construction
(6/18)
250,000 shares of cumulative preferred
(par $100). Price—To be supplied by amendment.
29
stock
Chicago.
stock which may be acquired pursuant to such pian.
struction
Power
Underwriter—Halsey, Stuart & Co. Inc., New York
Offerlng—Indefinitely postponed.
June 3 fjied 10,000
1987.
Electric
For
—
it Public Service Electric & Gas Co.
May
Price—To be supplied by amend¬
,
wick
Proceeds
Allen & Co., New
$12,000,000 of 25-year sinking fund deben¬
tures due Jan.
being offered to employees. Price—$13.50
are
v
Dec. 14 filed
ment.
mining equipment, etc. Under,
Otis, Inc., New York. Offering—
&
Indefinite.
and
penses
concentration plant,
a
writer—Gearhart
39
Inc., New York
March 29 filed 100,000 shares of common stock
Price—At market.
Proceeds—For
it Microwave Associates, Inc., Burlington, Mass.
(6/17-21)
it Pacific Power & Light Co. (7/10)
June 4 filed 376,600 shares of common stock
(par $6.50)
to be offered for
subscription by common stockholders
of record July 10, 1957 on the basis of one new
share for
May 29 filed 50,000 shares of
each 10 shares
Co., Inc., 60 Broadway, New York, N. Y.
Price—To be supplied by amendment. Proceeds—To dis¬
—For construction
charge bank loans and to finance inventory and accounts
mined
it Retirement & Vacation Properties, Inc.
May 20 (letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock (par
$10) and 20,000 shares of
common stock
(par five cents) to be offered in units of
New
York, N. Y.
receivable
.
'
.
common
stock
(par $1).
expenditures for development of new
products. Business—To develop and produce components
for radar systems. Underwriter—Lehman Brothers, New
'York, who has acquired from the company an option to
purchase up to 20,000 shares of common stock at $7 per
share during the period beginning Nov. 24, 1957 and
ending May 24, 1962.
Mississippi Valley Portland Cement Co.
Dec. 26 filed 1,600,000 shares of capita) stock (no par), of
Price—$3 per share. Proceeds—For completion of plant,
provide for general creditors and for working capital
Office—Jackson, Miss. Underwriter—None, offering to
be made through company's own agents.
June
&
Telegraph
June
to
5
filed
534,176 shares of capital stock
Co.
(par $100)
per
—T.
Trust
Proceeds—For investment.
Coleman Andrews.
Office
—
5001
on
Corp. of New York
Fund,
St., Princeton, N. J.
Price
Investment Advisor
—
Lithium Corp.,
New
tion
ment
poses.
Harland W.
S.
on
ore testing program; for assess¬
the Yellowknife properties; and for cost
—
To be
Proceeds—For
investment.
St.
April
Under¬
each
10
shares
on
June 12.
for
held
on
May 20, 1957, with
The remaining 15,000 shares
common
common
stock
(par $5)
stock of St. Paul
on
at
option
of
St.
(and
be declared
less than 80%
may
Regis, if not
deposited).
San Juan Horse
Racing Association
(letter of notification) 259,945 shares of com¬
(par 50 cents). Price—$1 per share. Proceeds
—For construction of a horse
racing oval; erection of
stable, etc.; in operating a race track and working capimon
-
tal.
stock
Office—1040 Main St., Durango, Colo. Underwriter
—None.
it Science & Nuclear Fund,
May 29 filed 33,000 shares of
Price—At
market.
Seaporcel
(6/17)
Inc.,
Metals,
Philadelphia, Pa.
stock (par $1).
investment.
common
Proceeds—For
Inc., Long Island City,
N.
Y.
May 24 filed 340,000 shares of common stock (par
of which 300,000 shares are to be offered
of New Mexico
rights to expire
Co.
April 29
C., is President and Board Chairman.
share
-
exchange for
Lumber
of the stock is
Proceeds —For general corporate pur¬
Underwriter — None. J. C. Todd of Columbia,
Service Co.
Tacoma
effective
stock. Price—
April 25 filed 181,997 shares of common stock (par $5)
of which 166,997 shares are being offered for subscrip¬
tion by common stockholders at the rate of one new
Regis Paper Co.
filed 850,000 shares of
1
exchange
Fla
of South Carolina
common
pre¬
M.
the basis of 56% shares of
St. Regis stock for each share of Lumber
company stock.
The offer will be declared effective if
95% of the latter
stock is deposited for
program.
Investment Corp.
R.
to be offered in
$1).
supplied by amendment. Proceeds — for
Underwriter—Lehman Brothers,
Insurance Corp., St.
Louis, Mo.
1,250 shares of class C cumulative
filed
(par $57).
Price—$97 per share. Proceeds
Realty Co., who is the selling stockholder.
Underwriter —Yates, Heitner &
Woods, St. Louis, Mo.
Offering—Expected within the next few weeks.
—To
York.
Public
New York
properties; for
work
market.
concept of mechanical parking.
Bldg., 911 Western Ave., Seattle,
ferred stock
Brothers
(par
new
Underwriter—None.
March 27
&
stock
a
Maritime
St. Louis
$1.20 per share.
Nassau
3,120,000 shares of common stock (par one
Price—$1.25 per share.
Proceeds—For acquisi¬
of
Lehman
—
Prudential
19 filed
cent).
Wash.
deposit of at least
The offer will expire
None.
development of
Office—515
intermediary in negotiating the transaction.
as
construction
Hoisington, Inc., same address.
National
—
April 30 filed 209,612 shares of
Office—10
to
upon
shares.
common
stock to be offered to stockholders and the
public. Price
—At par $1 per share). Proceeds—For
expenses incident
of record June 10, 1957 on the basis of one new share for
each
five
shares held;
rights to expire on July 1.
N. J.
investment.
Rota Parking, Inc.
May 13 (letter of notification) 275,000 shares of
par)
Portland Gas & Coke Co. (6/11)
May 22 filed 226,194 shares of common stock (par $9.50)
be offered for subscription by common stockholders
May 8 filed 250,000 shares of common stock. Price—At
Proceeds—For
(no
to
Inc.
Princeton,
West
F. Church
Plymouth Bond & Share Corp., Miami,
Joseph A. Rayvis, also of Miami, is President.
(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—For
purchase of royalty and working interests. Office—1518
Walnut St., Philadelphia 2, Pa. Underwriter—Walter S.
Sachs & Co., Inc., Philadelphia, Pa.
Feb.
effective
common
Underwriter
19.
Price—At
stock
market.
July
writer
April 22
Nassau
become
Plymouth Fund, Inc., Miami, Fla.
5 filed 500,000 shares of capital
May 17 (letter of notification) 295,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart
Securities Corp., New York.
mon
will
acted
St.,
stock
Minerals,
G.
stock
common
Feb.
Investors
Mutual
14 filed 609,815 shares of
offer
Richmond, Va.
Mutual
—
Philadelphia Electric Co.
246,500 Milprint
President
West Broad
Office—207
company.
Underwriter
Philip Morris, Inc., New York
May 28 filed 385,000 shares of common stock (par $5)
to be offered in exchange for common stock of
Milprint,
Inc., Milwaukee, Wis., on a share-for-share basis. The
Plans,
priCe_At market.
the
•
for Profit SharingInc., Richmond, Va.
March 19 filed 50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.
Investment
Retirement
of
Proceeds—To repay bank loans and
for construction program.
Underwriters—Drexel & Co.,
Philadelphia, Pa., and Morgan Stanley & Co., New York.
Underwriter—None.
Mutual
funds
determined
by competitive bidding.
Probable bid¬
Halsey Stuart & Co. Inc.; Shields & Co.; The First
Boston Corp.; Kidder,
Peabody & Co.; White, Weld &
Co. (jointly!); Salomon Bros. &
Hutzler; Blyth & Co.,
Inc.; Eastman Dillon, Union
Securities
&
Co.
and
Equitable Securities Corp. (jointly).
Bids—To be re¬
ceived up to 11 a.m. (EDT) on
July 2.
—$36.25 per share.
share). Proceeds—To repay advances
American Telephone & Telegraph Co., the parent.
from
be
Underwriter—
ders:
being offered for subscription by common stockholders
of record June 4, 1957 at the rate of one new share for
each 20 shares held; rights to expire on June 25.
Price
of one new share for each five
shares held; rights to expire on July 31.
Subscription
warrants are expected to be mailed on July 1. Price—
($100
unit.
it Rimrock Tidelands, Inc., Shreveport, La. (6/25)
June 3 filed 1,200,000 shares of
capital,-stock (par 20
cents). Price—To be supplied by amendment. Proceeds
Underwriter—Amos Treat & Co., Inc., New
general
May
be. offered for subscription by stockholders of record
At par
per
water
^Rochester Gas & Electric Corp. (7/2) vY,
May 29 filed $15,000,000 of first mortgage bonds, series
R, due 1987. Proceeds—To discharge short-term obli¬
gations and for construction program. Underwriter—To
St., Coffeyville, Kan.
& Co., St. Louis, Mo.
June 20, 1957 on the basis
•
and
equipment and working capital.
Bear, Stearns & Co., New York.
•
Telephone
Price—$10.50
dam;
—For
For
(7/1)
v
it Paramount Enterprises, Inc.
(letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2.50
per share. Proceeds—
For payment of loans and
working capital. Business—
Phonograph records. Office — 383 Concord Ave., New
8th
19.
States
complete
retire notes; construct
system; and for working
capital. Office — State Highway 679, P. O.
Tregilians,
Route No. 1, Louisa
County, Va. Underwriter—None.
Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Blair & Co., Incorpo¬
rated.
Bids—Expected to be received up to 11 a.m.
on
To
—
buildings, streets
York.
Probable
(EDT)
share of each class of stock.
Proceeds
Presi¬
Fund Management
,
one
Under¬
is
York, N. Y.
it Montana-Dakota Utilities Co.
(6/19)
May 27 filed $10,000,000 of debentures due June 1, 1977
(convertible through May 31, 1967). Proceeds—To retire bank loans and for construction program.
Under¬
writer— To< be
determined
by
competitive bidding.
* Mountain
Heyman of New York
Investment Advisor—Resource
June 3
«
-
<
D. John
it Pancal Oil Corp.
May 13 (letter of notification) 299,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For oil drilling expenses.
Office—27 William St., New
York, N. Y. Underwriter — Bush Securities Co., New
York, N. Y.
r
which 708,511 shares are subject to an offer of rescission.
'
dent.
held; rights to expire on Aug. 1. Proceeds
program.
Underwriter—To be deter¬
by competitive bidding. Probable bidders: Leh¬
man
Brothers; Eastman Dillon, Union Securities & Co.;
Bear, Stearns & Co. and Dean Witter & Co.
(jointly);
Kidder, Peabody & Co.; Ladenburg, Thalmann & Co.
Bids—Expected July 10.
and
(par $1).
investment.
writer—None.
10
cents),
public.
^
Price—$2
per
share. Proceeds—For
ment and working capital.
& Co., New York.
new
to
equip-
Underwriter—Charles Plohn
Continued
on
page
40
<
The Commercial and Financial Chronicle...
40
(2652)
39
* Sidney Beef Co., Sidney, Neb.
May 20 filed 11.750 shares of preferred stock
and 11.750 shares of common stock (par $1),
shares of each class of
5,250
(par $10)
of which
stock are to be issued to
exchange for the latter's plant
and real estate at Sidney, Neb. Price—At par. Proceeds
—To enlarge and improve plant, for working capital
Sterling Packing Co. in
Underwriters—David J.
Richard F. Neubauer and John Neubauer, of¬
other corporate
and
Neubauer,
purposes.
ficers of the company.
14 filed $1,000,000 of
May
nine-month 8% fund notes,
denominations of $100 each). Proceeds
—For working capital and other,, corporate
purposes.
Underwriter—Sire Plan Portfolios, Inc., New York.
Fund, Columbia, S. C.
of 6^ % sinking fund
+ Southeastern
June 3 filed $2,000,000
debentures due June 15,
subordin¬
1972, of which $1,500,000
(principal amount are to be offered for subscription by
stockholders; the remaining $500,000 principal amount,
any unsubscribed debentures,
fered. Price—To stockholders, 95%
plus
to "be publicly of¬
of principal amount;
public, at 100$, Proceeds—For working capital.
Underwriters—Smith, Clanton & Co., Greensboro, N. C.;
Powell & Co., Fayetteville. N. C.; and Frank S. Smith
and to
Co., Inc., Columbia, S. C.
&
Southern
Telephone
Bell
& Telegraph Co.
(6/18)
29-year debentures due June
Proceeds —To repay advances from parent,
American Telephone
& Telegraph Co., expected to
amount to approximately $36,000,000, and for additions
and improvements.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.
Bids—Expected to
t>e received up to 11 a.m. (EDT) on June 18.
1986.
•
Southern
California
13 filed 1,200,000 shares of cumulative preferred
(par $25). Price—To be supplied by amendment.
Proceeds—To retire bank loans and for construction pro¬
May
Underwriters—The First Boston Corp., New York,
Co., Los.Angeles and San Francisco,
This offering was withdrawn June 3. Bond sale
and Dean Witter &
Calif.
expected in July.
fV
ir Southern California Gas Co. (6 26)
'*u>bF'
Mav.28 filed $35,000,000 of first mortgage bonds,-series
C, due 1983. Proceeds—To repay loans and for newUnderwriter—To be determined bv com¬
construction.
Probable bidders: Halsey, Stuart &
and Merrill Lynch, Pierce,
White. Weld & Co. and East¬
man
Dillon, Union Securities & Co. (jointly). Bids—
Tentatively expected to be received up to 8:30 a.m.
petitive
bidding.
Inc.; Blyth & Co., Inc.
Co.
Fenner & Beane (jointly);
(PDT)
on
writer—None.
Manufacturing Corp., Houston, Tex.
2,700,000 shares are to be offered to public at
The remaining 300,000 shares are under
option to original stockholders at $1 per share. Proceeds
—For expansion and working capital. 'Underwriter—T.
J. Campbell Investment Co., Inc., Houston, Texas.
$2 per share.
Proceeds—To
ment.
repay
bank loans and for expan¬
.
Spalding (A. G.) & Bros. Inc.
April 11 filed $2,017,300 of 5V2% subordinated convert¬
ible debentures due June 15, 1962, being offered for sub¬
V
scription by common stockholders of record May 23, 1957
on the basis of $100 of debentures for each 30 common
June 17. Price—At par
Proceeds—To reduce bank loans. Underwriter—
None. The largest stockholder, Pyramid Rubber Co., has
chares held; rights to expire on
<flat).
©greed to purchase all of the debentures not subscribed
Statement effective May
for bv the other stockholders.
ir Star Plywood Cooperative, Esacada, Ore.
May 31 filed 335 memberships in the Cooperative. Price
,—$6,500 per membership.. Proceeds—For proposed ply¬
wood plant. Broker—Star Sales. Inc., Estacada, Ore.
East Orange,
Fund, Inc.,
N. J.
Timken
Roller
Canton,
Bearing Co.,
O.
Corp., New York
March 29 filed 530,712 shares of common
the
988,890
common
shares.
Attorney General of the United
Underwriter—To be determined by competitive
Proceeds
States.
outstanding
presently
(6/25)
stock (par $5),
—
the
To
World Airlines,
Trans
17,
1957
To be
other
and
Underwriter
equipment.
—
stock may
purchase any unsubscribed shares.
Inc.
United
• Vanadium-Alloys Steel Co.,
Latrobe, Pa.
May 13 filed 51,000 shares of capital stock (par $5) to be
offered for subscription by stockholders at the rate of
June
for
share
new
each
shares
10
held
as
of
record
to expire June 19.
Price—
Proceeds — For expansion program.
Underwriter—Goldman, Sachs & Co., New York.
4,
with rights
1957;
share.
per
Q, due July 1, 1987.
series
Proceeds—Together with proceeds
from sale of about $12,400,000 of common stock in March*
and
April,
construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co.; Kidder, Peabody & Co.
1957,
to
carry
out
ley
•
Summers
Gyroscope Co.
(6/13)
May 20 filed 250,080 shares of common stock (par $1) to
fee offered for subscription by common stockholders of
record May 31, 1957 on the basis of two new shares for
each five shares held.
ment.
Price—To be supplied by amend¬
Proceeds—For working capital and
porate purposes.
writer—Daniel
general
cor¬
Office—Santa Monica, Calif. Under¬
& Co., Beverly Hills, Calif.
Reeves
ir Texam Oil Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
to be offered for subscription by common stockholders
©f record March 15, 1957 on a basis of two new shares
lor each share held; rights to expire on July 20. Prhe
supplied by amendment. Proceeds—To repay
indebtedness, for acquisition anu exp^oia^xi
o.* —d
—To
gas
oe
leases, for drilling and completion of wells,
©ther corporate purposes.
Underwriter—None.
and for
and White, Weld & Co.
Co.
&
(jointly); Lehman Brothers; The
Bids—Tentatively scheduled to be re¬
to 11 p.m. (EDT) on July 10 at office of West
Inc.
ceived up
Penn Electric Co., 50 Broad Street, New York, N.
Y.
Western Printing & Lithographing Co.
May 15 filed $3,037,640 of 5% serial notes due Dec. 1,
1958 to
1967, inclusive to be offered, together with
cash, in exchange for 151,882 shares of capital stock of
Kable Printing Co. (111.) on the basis of $20 of notes and
$6 in cash for each share held. This offer which is to
expire July 12, is conditioned upon the acceptance by
holders of at least
85%).
Holders
shares
will
of
130,000 shares of Kable stock (about
Kable stock who own less than 51
receive
cash
Office—Racine, Wis.
Wilson &
Aug
28
bentures
ment.
the
rate
of
$26
per
share.
Underwriter—None.
$20,000,000
1976.
Proceeds
—
of
20-year
Price—To
To
be
redeem
sinking fund de¬
supplied by amend¬
presently
outstanding
con¬
owner
was
announced company
15,000 shares of $1.20
plans to issue and
cumulative convertible pre¬
Underwriters—Emch &
ferred stock series A (par $20).
Co. and The Marshall
-
Co., both of Milwaukee, Wis.
American
European Securities Co.
April 24 stockholders approved a proposal to increase
the authorized capitalization from 600,000 shares (con¬
sisting of 500,000 common shares and 100,000 preferred%
shares) to 1,000,000 common shares, without par value.
It is/ probable that additional common stock will be
offered to common stockholders during the current year'
although no offering is presently planned. Underwriters
—Dominick & Dominick in United
States; and Pictet &
Cie, in Switzerland. Latter owned of record, but not
beneficially,"on March 1, 1957, 380,532 of the 459,379
common shares outstanding.
'
Arizona
May 17 it
in
late
Public Service Co.
was
.♦
reported company plans to issue and sell
Summer
Underwriter
or
early
Previous
—
vately through
Co., Inc.
The
First
$10,000,000 of bonds.
financing was done pri¬
Fall
bond
Boston
Corp.
and-Blyth
&
Atlantic City Electric Co.
April 9, Bayard L. England, President, announced that
later this year the company will probably issue about
$5,000*000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.
Inc.; Kuhn, Loeb & Co., American Securities Corp.
Wood, Struthers & Co. (jointly); White, Weld & Co.
(jointly); The First Boston Corp. and
Drexel & Co. (jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
and
and Shields & Co.
Baltimore Gas &
May 6 it
some
was
Electric Co.
reported company plans to issue and sell
first mortgage bonds before July
1,
1957.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; White, Weld &
and The First Boston Corp. (jointly); Kuhn, Loeb
Co.; Harriman Ripley & Co. Inc., and Alex. Brown
& Sons (jointly).
Co.
&
ic Bank of Douglas, Phoenix, Ariz.
May 29 it
have
was
been
announced stockholders of record May 28
160,000 additional shares of capital
offered
stock
(par $5) on the basis of one new share for each
2y2 shares held; rights to expire on June 14. Price—$14
per
Co., Inc.
filed
due
at
plans to issue and sell
Research
Aluminum Specialty Co.
sell
amendment. Graham Al¬
Portland, Ore., is President.
American
24
March 18 it
Angeles, Calif.
Underwriter—To be named by
debentures.
debt and for expansion.
Underwriter—Pos¬
sibly Julien Collins & Co., Chicago, 111.
purchase of new materials and working capital.
Office
Phoenix, Ariz.
Underwriter — Jonathon & Co., Los
April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected?
to be $1 per share). Proceeds—For exploration purposes.
Laboratory, Inc.
company
short-term
—
//,".■
announced
was reported company plans to issue and sell
preferred
stock.
Stockholders J on
authorized an issue of 100,000 shares of $50
value stock, issuable in series. Proceeds—To repay
par
of America, Portland, Ore.*
Offering—Expected in June
convertible
April
Utilities, Inc., Abilene, Kansas
April 25 filed 105,000 - shares of common stock (par
$10) being offered in exchange for stock of OregonWashington Telephone Co. on the basis of 2%'shares for
each Oregon-Washington common share and five shares
for each Oregon-Washington preferred share. This offer
is subject to acceptance by not less than 80% of each
class of stock and will expire on July 1. Dealer-Manager
Corp., Chicago, III.
Instruments
was
Corp.,
some
—
bert Griswold of
:
Allied Paper Corp.
April 11 filed 500,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — For
Uranium Corp.
'■
/*
May 13 it
Co., Inc., Washington, D. C.
—Zilka, Smither & Co., Inc., Portland, Ore.
{
.
&
Develop¬
of 31,500 shares or 15.8% of Airborne's stock, propose to purchase $320,000 of the new
debentures.
Proceeds—Together with $4,000,000 to be
borrowed from institutional investors, for a building and
expansion program.
ment
Tripac Engineering Corp.
Feb. 27 (letter of notification) 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬
ment and proprietary development.
Office —4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
First Boston Corp.; W. C. Langley & Co.; Harriman Rip¬
and
vertible
Hughes Tool Co., the holder of 2,476,142 shares of TWA
common
,
$2,000,000 of 15-year 5*A% unsecured subordinated
None.
©t
Probable
Brothers
May 16 it
held; rights to expire on July 8. Price—
supplied by amendment. Proceeds — To pay for
bidders include Kuhn, Loeb & Co.,
Glore, Forgan & Co. (jointly).
(EDT) on June 25
Office of Alien Property, Washington 25, D. C.
Lehman
Airborne
share
new
for each share
aircraft
debentures due
Aerojet General Corp.
May 10 it was reported that this company (a 95% owned
subsidiary of General Tire & Rubber Co.) may raise be¬
tween $5,000,000 and $10,000,000 by the sale of additional
common stock, perhaps 25,000 shares
or so, either pri¬
vately or publicly. Proceeds—For working capital. Un¬
derwriter—Kidder, Peabody & Co.^ew York.
(6/18)
at the rate of one
(6/25)
Irwin Jacobs & Co. of Chicago) plans a public
offering of $1,000,000 class A 6% participating convert¬
ible stock (par $1). Underwriter—Baker, Simonds & Co.,
May 28 filed 3,337,036 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record June
'
r
Tex.
and
Underwriter—
Inc., New York
'
.
this company (to be surviving
corporation following merger of First Mortgage Corp.
Detroit, Mich.
Ittds—To be received up to 3:45 p.m.
Lidding.
York, N. Y.
Advance Mortgage
4 it was reported
Titanic Oil Co.
Colo.
*
Dec.
May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office — 704
★ West Penn Power Co. (7/10)
June 3 filed $20,000,000 of first mortgage bonds,
©f
Mo. and New
held; rights to expire July 1. Price—To
be supplied by amendment.
Proceeds—For capital im¬
provements and working capital.
Underwriter—Hornblower & Weeks, New York.
First National Bank Bldg., Denver,
'
*
1972. Price—At par. Proceeds—To retire bank loans; for
development of producing properties; and for working
capital. Underwriter — G. H. Walker & Co., St. Louis,
10 shares
Inc., Fortune II, Inc., Fortune III,
Underwriter — William Allen
Steadman & Co., East Orange, N. J.
Fund of Fortune,
Inc. and Fortune IV, Inc.
J
it Zapata Petroleum Corp., Midland,
June 3 filed $3,000,000 of convertible
(6/13)
$38.50
(Hugo)
ment.
May 21 filed 484,276 shares of common stock (no par)
to be offered for subscription by common stockholders
of record JTune 12 on the basis of one new share for
one
May 10 filed 100,000 shares of common stock (par $1)
into this Fund
Stinnes
account
selling stockholder, Ralph J. Ursillo, General Manager
of the company.
Price—$1.50 per share. Proceeds—To
drill and complete oil wells on the company's Pennsyl¬
vania and Kentucky properties and for two "deep tests"
on
its Pennsylvania property, as well as for working
capital. Underwriter—Name to be supplied by amend¬
working capital. Underwriters—Rey¬
nolds & Co., Inc., New York, and Lester, Ryons & Co.,
Los Angeles, Calif.
to be offered in connection with merger
of
cents),
sion program and
U. S. Semiconductor Products,
Steadman Investment
(6/26)
Inc., Los Angeles, Calif.
ir Thriftimart,
May 31 filed $5,000,000 of convertible subordinated de¬
bentures due 1977.
Price — To be supplied by amend¬
June 26.
^ Southern Discount Co., Atlanta, Ga.
May 23 (letter of notification) $60,000 of subordinated
non-convertible 5% debentures, series G, due Oct. 1,
1975 (in denominations of $500 and $1,000 each), to be
offered in exchange for series D, E or F debentures.
Office—919 W. Peachtree St., N. E., Atlanta, Ga. Under¬
'
by amendment. Proceeds—For expansion program. Un¬
derwriter—Dillon, Read & Co. Inc., New York.
Inc., New York
700,000 shares of common stock (par 10
of which 600,000 shares are to be offered for
of company and 100,000 shares for account of a
28 filed
May
Wayne Jewell Co., Denver, Colo.
Edison Co.
stock
gram.
May 29 filed 200,000 shares of preferred stock, subordin¬
ate convertible series (par $100). Price—To be supplied
Texas Glass
<, program."
★ Woodland Oil & Gas Co.,
(6/19)
Corp.
bonds, to repay bank loans and for ex¬
Business—Meat packing firm.: Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—
pansion
Indefinitely postponed
■'
-
Transmission
Eastern
Texas
each
May 28 filed $70,000,000 of
1,
Inc., New York.
t
of which
price—At par (in
ated
first mortgage
(6/19)
Corp.
May 29 filed $15,000,000 of.debentures due Juxe 1, 1977.
Price—To be supplied by amendment. Proceeds — For
new
construction.
Underwriter — Dillon, Read & Co.,
May 28 filed 3.000,000 shares of common stock (par $1),
Inc., New York
Sire Plan,
Transmission
Eastern
Texas
Continued from page
Thursday, June 6, 1957
share.
and
used
Phoenix.
Proceeds
—
To increase capital and surplus
acquire Farmers & Stockmen's Bank of
Underwriter—William R. Staats & Co., San
to
Francisco, Calif.
Volume 185
•
Bank
May
May
of
Montreal JMontreaI, Canada
Bank offered its stockholders of record
1957, the right to subscribe for 900,000 addi¬
17,
shares
one
expire
of
capital
share
new
for
stock
each
(par
five
$10)
shares
the
on
held;
basis
rights to
The--Royal
Trust
Co., Montreal, Canada.
The
offering
Columbia
May 27 it
Steel
Corp.
//v'
plans to register about
reported company
$10,000,000 of 12-year convertible
June
was
Underwriters
both of New
—
Lee
April 25 it
was
be
debeniures.
•
•
new
debentures due 1997.
Proceeds—
Birdsboro
April 19 it
Steel
& Co.
company
may
stock
of
(par
100,000
$100)
shares
Feb. 21 it
and
to
increase
the
bonds
Carolina Pipe Line Co.
/
»
of
Lynchburg, Va.
v
Horner
&
Co.,
Central Hudson Gas & Electric
April 9 it
Corp.
was
construction
program.
Underwriter—Probably
Kidder, Peabody & Co., New York.
Central Illinois
market conditions.
later
these
series
May 3 it
'
Light Co.
(6/28)
~
per
share.
Underwriter
/
of California
was
•/'/?■>
announced
the California
'
For
construction
program.
Underwriters—Paine, Web¬
Curtis, Boston, Mass.; and Mitchum*
Jones & Templeton, Los Angeles, Calif.
ber,
Jackson
&
General Tire &
May 10 it
Rubber Co.
reported that this
is considering
debentures, prob.abiy around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For
working capital. Underwriter—Kidder, Peabody & Co.,
New York.
//:*.
0 x'-r-,/ /.''"V.V-',
issue
an
Co.
was
of
convertible
Great Northern
Bids
company
subordinated
(7/17)
Ry.
expected by the company to be received on
July 17 for the purchase from it of $4,965,000 equipment
are
trust certificates.: Probable bidders:
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley
Halsey, iStudrt & Co..
'
Inc.; Salomon Bros, & Hutzler.
Gulf Interstate
Gas
<
Co.,/
was announced company plans to issue some
additional first mortgage bonds, the amount of which has
May 3 it
Corp. (jointly).
Consolidated Water Co.
expected
are
Price—$60
application has been made to
P. U. Commission for authority to issue
and sell 500,000 shares of 5% cumulative preferred stock
(par $20) shortly after the sale of an issue of $20,000,000 first mortgage bonds which have been filed with the
SEC (see a previous column in this article). Proceeds—
Proceeds—For
was announced company plans to issue and sell
$25,000,000 25-year debentures in October in addition to
$25,000,000 to be sold on June 11. Underwriter—To be
"& Co. and the First Boston
about June 28.
General Telephone Co.
[On Oct. 24, 1956, $40,000,000
M, due 1986, were offered and
Gas
July 22, 1957. Warrants
Proceeds—To increase capital and surplus.
First Boston Corp., New York.
'
this year.
bonds,
or
—The
—
on
on
on
(6/17)
April 30 it
{
announced eompany plans to issue and sell
this year additional first mortgage bonds. Proceeds—To
finance
upon
Consolidated Natural
;
substantial reduction of its bank loans (which
approxi¬
mate $12,200,000).
Previous debenture financing was
done privately.
/
City Bank of New York
right
to be mailed
May 9 it
L
Carolina Telephone & Telegraph Co.
capital and surplus.
Securities'Corp. and First
reported Bank plans to offer its stock¬
to subscribe for 2,000*000 additional
was
the
rights to expire
bidding., Probable bidders:
Morgan Stanley & Co.; The First boston Corp.
Inc.,
March 11 it was announced
company plans to issue and
sell some debentures in an amount which would
permit
increase
share
$146,000,by competitive
Halsey, Stuart & Co. Inc.;
j
Scott,
;
shares of capital stock (par $20) on the basis of one new
for each five shares held as of June 24, 1957;
/
tion program which is
expected to total about
000.
Underwriter — To be determined
reported company plans to construct a
pipe line in South Carolina at an estimated cost of about
;—
holders
Proceeds—From this issue and from bank loans,
to pay part of the cost of the
company's 1957 construc¬
was
$8,706,000. 'Underwriter
First National
sold.]
Tire & Rubber Co. financing.
r
Proceeds—To
May 17 it
Consolidated Edison Co. of New
York, Inc.
May 20, H. R. Searing, Chairman, said the company will
probably sell a new issue of first and refunding mortgage
out¬
& Rubber Co. in 1956.
Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder,' Peabody & Co. underwrote General
March 11 it
/
,
.
announced company plans to offer to its!
the privilege of
subscribing for 100,000
was
Southwest Corp., both of Dallas, Texas.
program.
Underwriter
Putnam & Co.,
Hartford, Conn.: Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass.
a
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization
plan. There are no specific
objectives involved. Control—Acquired by General Tire
•
r.
Underwriters—Dallas Union
Connecticut Light & Power Co.
Feb. 18, it was reported company
plans to sell not less
than $20,000,000 of first
mortgage bonds, possibly this
preference
authorized
t
share.
per
reported that company plans to issue and
sell in the Fall $8,000,000 of cumulative
preferred stock.
have to obtain
cumulative
K.
Halsey, Stuart & Co. Inc.; Salomon Bros.;
stockholders
was
construction
of
.
to
additional shares of capital stock (par $10) on the basis
of one new share for each 6M> shares held.;* Price—$24
Pierce, Fenner & Beane and White, Weld
Fall, depending
class
new
May 15 it
Underwriter—Dillon, Read & Co. Inc., New York.
proposal to authorize
v":
;;
i
dends-.
a
i^.
j
-
:j f-'"V \\
First National Bank of Fort Worth
that it plans the issuance
Columbus & Southern Ohio Electric Co.
additional
financing, probably this year, to continue
building for the future and earning and paying divi¬
Byers (A. M.) Co.
May 7 stockholders approved
able bidders:
(jointly). Bids—Expected to be received in September.
'//'■-i. v;v
Foundry & Machine Co.
was announced
announced
expected
•*& Hutzler.
;
Inc.
$25,000,000 additional debehtures in September < in addition to
$20,000,000 additional to be sold at
competitive bidding on June 6—see above)/ Proceeds—
To help finance 1957 construction
program, which is ex¬
Merrill Lynch,
.$50,000,000 of 5% series C bonds. Underwriter
determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley &
Co.; The First Boston Corp.; White, Weld & Co. and
Eastman Dillon, Union Securities & Co.
(jointly). Bids—
Expected to be received up to 11 a.m. (EDT) on July 30.
'
company
System,
pected to cost approximately $87,000,000. Underwriter—
To be determined
by competitive bidding. Probable bidbers: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.;
(7/30)
plans to issue and
company
18,
Gas
are
be received by this company in
Cleveland, Ohio, up to noon (EDT) on June 20 for the
purchase from it;,of $2,925,000 equipment (rust certify,|
icates to mature in. 15 equal annual installments,! Prob-.
and sale of
Co. of Pennsylvania
announced
sell $50,000,000 of
To redeem
Feb.
Higginson Corp. and Allen & Co.,
York.^V,
Bell Telephone
—To
(6/25)
Erl* RR. *(6/20)
•Bids
an average
price of $10 per share.) Pro¬
ceeds—Together with funds from private sale of $40,000.?-:'
000, for construction program. Underwriters—Lehman
Brothers and Allen & Co., both of New York.
^
will not: be registered with the Securities and
Exchange
Commission.
' '.V,
Barium
vious bond financing was done privately.
stockholders at
—To increase
41
1956) and for construction program. Underwriters—Pre¬
r
plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units.
(Common stock not sold in units
would be purchased by
Delhi-Taylor Oil Corp., or its
Aug. 9, 1957. Price—$30 per share. Proceeds
capital and surplus. Subscription Agent—
oil
(2653j"
~;r Coastal Transmission Corp. •
March 6 it was reported the
company
31 'this
tional
of
Number 5644... The Commercial and Financial
Chronicle
not yet been determined.
sell
program.? Underwriters—Carl
was announced company plans to issue and
10,000 shares of $1.50 cumulative convertible pre¬
ferred-stock (no par). Price—$25 per share. Proceeds—
and Merrill
To
retire bank debt and for other
corporate purposes.
Underwriter—The Milwaukee Co., Milwaukee, Wis.
Consumers Power Co. "
*
— For
construction
M. Loeb, Rhoa&es & Co.
Proceeds
Lynch, Pierce, Fenner &' Beane/-.
Gulf States Utilities Co.
:
March
4
it
was
reported
•.'•/>.
company
:
\
■
plans to; issue
and
sell $16,000,000 first mortgage bonds in November. Pro-
April 22 it was reported, company plans to issue and sell / ceeds—To repay bank loans and for construction PfQ/ gram. Underwriter-r-To be determined by competitive
plans to sell around
\ $40,000,000 of first mprtgage bonds this Fall. Proceeds—
of-July $15,000,000 of 30-year first mortgage "' To
bidding. Probable ^bidders:- Halsey, Stuart?. & Gf*; Inc.;
repay bank loans and for construction program. Un¬
bonds. Proceeds
To repay* bank loans and for new
Merrill Lynch, Pierce, Fenner ami Beane and*White,
derwriter
To be determined by competitive bidding.
construction. Underwriters—To be determined
Weld & Co. (jointly); Salomon. Bros, & Hutzler and
by- com¬
Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
& Co. and Shields & Co.
(jointly); Morgan Stanley &
Loeb & Co. and A. C. Allyn & Co. Inc., (jointly); Stone
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; Eastman
Co.; The First Boston Corp. and Harriman Ripley & Co.
Dillon, Union Securities & Co.; The First Boston Corp.;
.& Webster Securities Corp.; Lee Higginson Corp.
?
Inc. (jointly).
/>•';/
:/
Harriman Ripley & Co. Inc.; Merrill
Lynch, Pierce, FenGulf States Utilities Co.
Detroit Edison Co. ;
ner
& Beane and
Stone & Webster Securities Corp.
; April 8 it was reported company tentatively plans to
May 6 it was announced company plans to sell in 1957
(jointly). Registration—Expected early in June.
issue and sell some preferred stock this year. .Proceeds
about $60,000,000 of mortgage bonds.
Proceeds — For
—To
finance construction
Central Illinois Public Service Co.
program.
Underwriter—To
construction program (estimated to cost about
$89,()00,000
be determined by competitive bidding. Probable bidApril 9 it was reported company plans to issue and sell
this year). Underwriter—To be determined
by competi¬
aefb
aiune
&
Webster securities Corp.; Lehman Bro¬
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
tive bidding. Probable bidders: The First Boston
Corp.
thers and Equitable Securities Corp. (jointly); Lee Hig¬
loans and for construction program. Underwriter—To be
and Halsey, Stuart & Co. Inc. (jointly); Coffin & Burr,
ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
determined by competitive bidding.
Probable bidders:
Inc., and Spencer Trask & Co. (jointly). Bids —Now
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. LangHalsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
expected to be received in latter part of June.
ley & Co. (jointly).
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
Duke Power Co. (9/10)
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
Hanna Steel Co., Birmingham, Ala.
#\
,
April 22 it was reported company plans to issue and sell
and Merrill Lynch, Pierce, Fenner & Beane
April 8 it was reported company plans to issue and sell
(jointly);
$50,000,000 of first refunding mortgage bonds. Proceeds
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
120,000 shares of class A common stock. Price—$5 per
—To repay bank loans and for new construction. Under¬
share
Offering—Expected late in 1957.
Underwriters—Cruttenden, Podesta & Co., Chi¬
writer—To be determined by competitive bidding. Prob¬
cago, 111.; and Odess, Martin & Herzberg, Inc., Birming¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
t Central Louisiana Electric Co., Inc.
ham, Ala. Offering—Expected in June.
ton
April 8 it was announced company plans to issue and
Corp.; Morgan Stanley & Co.; Stone & Webster
Hilo Electric Light Co., Ltd. (Hawaii)
sell late this year $6,000,000 of first mortgage bonds.
Securities Corp. Bids—Tentatively scheduled to be re¬
March 9 it was announced company plans to issue and
ceived on Sept. 10.
Proceeds
Together with $4,500,000 of 4%% 12-year
sell $2,000,000 of first mortgage bonds, series F, at an
convertible debentures to be placed privately, to be used
Eastern Gas & Fuel Associates
interest rate not to exceed 6%. Previous bond financ¬
to repay bank loans and for construction program. Un¬
April 3 it was announced company may need additional
ing was done privately.
derwriters—Kidder, Peabody & Co. and White, Weld &
capital of between $25,000,000 and $35,000,000 during the
Co. about the middle of last year arranged the private
next two years. Underwriter—For any bonds to be de¬
Houston Lighting & Power Co.
placement of an issue of $5,000,000 series G first mort¬
termined
Feb. 13 it was reported company may offer late thi9
by competitive bidding. Probable bidders:
gage bonds.
Fall approximately $25,000,000 first mortgage bonds, but
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).
exact amount, timing, etc. has not yet been determined.
^Chicago & Eastern Illinois RR. (6/25)
Underwriter—To be determined by competitive bidding.
Bids are expected to be received by the company on
Eastern Utilities Associates
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
June 25 for the purchase from it of $1,130,000 equip¬
April 15 it was lannounced company proposes to issue
Securities
Corp.; Lehman Brothers, Eastman Dillon,
ment trust certificates. Probable bidders:
and
sell $3,750,000 of 25-year collateral trust bonds
Halsey, Stuart
Union
May-14 it
was announced
company
the middle
—
—
.
—
& Co.
Inc.; Salomon Bros. & Hutzler.
Proceeds
Bids
for
trust
Co.
expected to be received by the company in July
purchase from it of about $3,000,000 equipment
are
the
certificates.
Probable
bidders:
Halsey,
Stuart
&
Inc.; Salomon Bros. & Hutzler.
Cleveland
Nov. 12 it
$25,000,000
1957.
Electric
Illuminating Co.
reported company plans to issue and sell
of first mortgage bonds in the Summer of
was
Proceeds—To repay bank loans and for construc¬
tion program.
petitive
Underwriter—To be determined by com¬
bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
—
For
advances
to
Blackstone
Securities
Valley Gas
&
Electric
Chicago, Rock Island & Pacific RR.
Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
it Emerson
June 3 it
Electric
Manufacturing Co.
was
rights
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, WilHams & Co.
(jointly); Glore, Forgan & Co.; White,
Proceeds—To
subscribe
to
Co.
Empire District Electric Co.
14, D. C. McKee, President, announced company
plans to issue and sell some additional bonds this year.
retire
bank
loans
($2,200,000 at Dec.
31,
Co.
and
Salomon
Bros.
6
it
was
Gas
& Oil
reported
that
&
&
Hutzler
Co., Inc.
Corp.
company
plans to offer
publicly $22,405,556 of 5M>% interim notes (convertible
into preferred stock) and $18,241,944 of common stock
ent
Part of
stockholders
common
at
struction program.
stock will be offered to pres¬
share. Proceeds—For con¬
Underwriter—Blyth & Co., Inc., San
$10
per
Francisco and New York.
Idaho
Power
Co.
reported company plans to issue and sell
around 200,000 to 225,000 shares of common stock in the
Fall in addition to between $10,000,000 to $15,000,000
Mav
March
Weld &
to
Houston Texas
March
in units.
announced company plans to
offer stock¬
approximately $3,000,000
of convertible debentures early this summer.
Proceeds
—For working capital.
Underwriter—Smith, Barney &
Co., New York. Registration—Expected later this month.
holders
&
(jointly); Lazard Freres & Co. and Blyth
(jointly); Kidder, Peabody & Co.
16 it
was
I
Continued
on page
42
42
Continued
from
page
Middle South Utilities,
41
after Nov. I. Underwriter—To be
determined by competitive bidding,
probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
and Eastman Dillon, Union Securities & Co.
& Hutzler
Blyth & Co. Inc., Lazard Freres & Co. and
Boston Corp. (jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
(jointly);
First
& Co., Inc., and
thorized serial preferred stock
increase in the au¬
(par $50) from 1,000,000
1,600,000 shares. Underwriters—Merrill Lynch,
Fenner & Beane and The First Boston Corp.,
shares to
Pierce,
both of New
York.
Inc.; Harriman Ripley & Co. Inc.; The First/Boston
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)
Oct.
on
stock
time in
some
feasible, and
an
1957 if
market
conditions
make it
issue of $8,000,000 in bonds in 1958. Tem¬
loans are available and probably will be
utilized, during at least part of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
bank
porary
to
Proceeds—To repay bank
approximately $14,000,000.
loans
and
for
new
construction.
Underwriter—May
Lehman Brothers, Goldman, Sachs & Co.
Boston Corp., who underwrote last equity
International
Utilities
be
and The First
financing.
Corp.
April 17 stockholders approved an increase in the au¬
thorized common stock from 2,500,000 to 4,000,000 shares
(par $5). Underwriter—Butcher & Sherrerd, Philadel¬
Gas
&
mortgage
for
new
was
bonds.
Proceeds—To retire
loans
bank
construction.; Underwriter—To
be
and
determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Kuhn, Loeb & Co.; Glore, Forgan & Co.; *
The First Boston'Corp.; Harriman Ripley & Co. Inc.;
Eastman Dillon, Union Securities & Co., and White,
*Weld
&
Co./(jointly); Dean Witter & Co.; Lehman
Brothers; Equitable Securities Corp.; Blyth & Co., Inc.
Halsey, JSfuart & Co.., Inc.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid-
10 stockholders approved a new-issue of 50,000
shares of cumulative preferred stock (par $100). Pro¬
ceeds — To finance expansion. Underwriter — Smith,
^
^ •.
Iowa Southern Utilities Co.
*v.'
' /
April 2 it was announced company plans to issue and
sell $5,000,000 of first mortgage bonds later this year.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey," Stuart & Co.
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
Brothers, and Bear, Stearns & Co. (jointly) Equitable"
Securities Corp. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.; Dean Witter & Co.
f
.
July 23.
and
& Webster Securities
Stone
Montreal
Corp.
.
Co.,
Electric Co.
announced company plans to issue and
first mortgage bonds.
Underwriter^To
be
determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly): Equitable Securi¬
ties Corp.; The First Boston Corp.: Harriman Ripley &
Inc.:
Bros.. &
Hutzler
&
Co.
Boston
Feb.
Jefferson
Lake
Dec. 27, Eugene H.
In the
tures.
■y
near
Walte, Jr., announced
an
company
plans
issue of convertible deben¬
Proceeds—For expansion
program.
Kaiser Industries Corp.
Nov. 28, E. E. Ttefethen, Jr., Executive
Vice-President,
stated that it is anticipated that a portion of the funds
necessary to meet the $25,000,000 installment due April
T, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the
securities of the companies owned by the
Henry J.
Kaiser Co., or of certain other assets.
First Boston Corp., New York.
1
Underwriter—The
Long Island Lighting Co.
April 16 it
was announced company plans to sell later
this year $40,000,000 of rist mortgage
bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due
Jan. 1, 1958 and for construction
program. Underwriter
.—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co.
(jointly).
-
-
Louisville Gas & Electric Co.
(9/4)
May 14 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction
program.
To be determined by competitive
bidding.
Underwriter—<
Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
American Securities Corp. (jointly);
Kidder, Peabody &
Co. and Goldman, Sachs & Co.
(jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc.
(jointly); The First Boston Corp.; Eastman Dillon, Union
Securities & Co. and White, Weld & Co.
(jointly). Bids
—Tentatively scheduled to be received on Sept. 4.
Louisville & Nashville RR.
Bids
expected to be received by the company some
time in the Fall for the purchase from it of
$14,400,000
are
equipment trust certificates.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
RR.
to
up
by
•
'Drexel
Halsey,
*4
'
;
<"f-
company
plans to issue
(jointly);
& Co.
(jointly)/
'
•
Public Service Co. of Indiana, lnc*~.
announced that it is expected that a new
Feb! 11 it
was
series
-
first
of
mortgage
bonds
(about
$25,000,000
'
will
,
year
Co.
petitive bidding.: Probable bidders: Halsey, Stuart &
company
in
New
j(o
be "issued and sold by the company
-1957; Proceed s-^-To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new
construction. Underwriter-—To be determined by com¬
$30,000,000)
during the
York,
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co. Inc.; Glore, Forgan & Co.: Kuhn. Loeb
noon
Hutzler.
the
announced
was
bonds.' Proceeds—For expansion program. Underr
bidding. Prob¬
able bidders: Halsey,"Stuart & Co. Inc.; White, Weld &
"Co.; The First Boston Corp.; Morgan Stanley & Co. and
(6/11)
the
it
14
writer—To be determined by competitive
(EDT) on June 11 for the purchase
from it of $6,450,000 equipment trust certificates. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
Y.,
'■■J/';"// V/.-;
gage
"
&
Co.,, Salomon
Bros.
&
Eastman Dillon,
Hutzler and
Union Securities & Co. (jointly).
"
•
Purex
Corp., Ltd. (Calif.)
was announced that proceeds of at least $1.200,000 are to be received by/the company prior to July
1, 1957 from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,
Niagara Mohawk Power Corp.
Sulphur Co.
future to sell
N.
Central
received
be
construction!; Undeiyrriter rf "Glore, Forgan &*
and sell in the second half of 1957 additional first mort¬
(jointly); Equitable Securities Corp;f The First
Corp.; Merrill Lynch. Pierce, Fenner'& Beane /
will
Proceeds—To repay advances
the remaining $16,000,000
Philadelphia Electric Co.
Dillon, Uniorr Securities" & Co. and White, Weld
New York
.
$3,700,000 of preferred*: stock and $6,f
Co., New York.
—
Bids
*
$9,300,009 from parent, and
foi*' hew
i
Eastman
Co
securities, in the following form: $15,000,000 of
new
of
Co.; Kuhn,'Loeb'& Co:,-Leh¬
Salomon
&
600,000 of common stock.
Sept. 12 it was announced company plans to issue and sell $5,000,006 of first mortgage bonds.
Underwriter-*-To be determined by competitive bidding. ' Probable
Brothers and
Loeb
mortgage bonds,
Co.; The First Boston Corp: • Bids—Tentatively expected
to be received on Sept. II.
< -r* .
*
bidders: Halsey* Stuart A
Kuhn
it Permian Basin Pipe Line Co.
May 20 it was announced company, a subsidiary of
Northern Natural Gas Co., may issue about $25,300,900
$30,000,000 of debentures.: Proceeds—Together with pro¬
ceeds from sale of 900,000 shares of common stock (par
$100) to parent, American Telephone & Telegraph Co.,/
will be used to pay for expansion program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kqhn, Loeb & Co.;
Morgan Stanley & Co.; Shields & Co.; White, Weld &
man
$6,000,000 of
Co.
-
%
'
was
sell
announced company plans to issue and sell
Jersey Power & Light Co*
Offer¬
Pennsylvania
Sept. 12 it
of
(9/11)
of the voting stock of Pacific T. & T. Co.
Telephone
/Telegraph Co. (8/29)
> /
May 24 it was announced company plans to issue and'
sell $90,000,000 of new 23-year debentures due
1980.
Proceeds—To repay advances from parent and for im¬
provements and additions to property. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be received on Aug. 20. Registration
—Expected in the latter part of July.
System
Bell Telephone Co,
Prtff
repay
Pacific
•
company.
was
Co.
ing—Expected some time in August.
1957.
May 1 it
1
,
shares of common stock and/or pre¬
89.6%
This would be followed by a $20,*
000,000 first mortgage bond issue by the resultant com¬
pany,
to vbe known as Marrimack-Essex Electric Co.
Underwriter—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Company; Salomon Bros. & Hutzler; Eastman
Dillon, Union Securities & Co., and Wood, Struthers &
Co. (jointly); Lehman Brothers; The First Boston Corp;;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane; Kidder, Peabody & Co., and White, Weld
& Co.
(jointly).
Offering—Expected in first half of
one.
»
Price—At par ($100 per share).
None.
Co.; Lowell Electric Light Corp.; Lawrence Electric Co.;
into
*
advances from parent. Underwriter—;
American
Telephone & Telegraph Co. owns
ceeds—To
May 23 it was announced SEC has approved the merger
of the five following subsidiaries: Essex County Electric
Haverhill Electric Co. and Amesbury Electric Light
•
%
-.
share for each six
& Hart.
Electric
r -
r
ferred stock held.
(jointly).
.
England
J
May 24 it was announced company plans to offer to its
stockholders the right to subscribe for 1,822,523 addi¬
tional shares of common stdck on the basis of one new
;j
(City of)
May 23 it was announced this City plans to market a
$25,000,000 loan in New York. This followed rejection
of a bid by a Montreal banking syndicate to-take a
$10,000,000 bond issue at a net interest cost of 6.11%.
Proceeds—$18,000,000 for public works and $7,000,000
for local improvement projects.
Underwriters—Prob¬
ably Shields & Co.; Halsey, Stuart & Co. Inc., and
New
'
Pacific Telephone & Telegraph
'
•der, Peabody & Co.; Smith, Barney & Co.; arid Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce,-Fenner &
New
Iowa Power & Light Co. ■
April
Barney &- Co., New York.
bidders:
New Jersey
Electric Co.
reported company now expects to issue
and sell in the second quarter of 1957 $11,000,000 of first
April 1 it
$20,000,000 of debt securities. Proceeds—
program
and to reduce bank loans.
construction
Probable
phia, Pa., handled last equity financing.
Iowa
ders:
Underwriter—To be determined by competitive bidding.
Savard
/
15.
Probable bid¬
competitive bidding.
by
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp.
Bids—Expected to be received ori
-
Indianapolis Power & Light Co.
Nov. 21, H. T. Prichard, President, announced that pres¬
ent plans contemplate an issue of $6,000,000 of preferred
determined
be
Beane
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
& Electric Co.; (7/23)
Pacific Gas
May 23 it was announced company intends to offer and
sell $60,000,000 of first and refunding mortgage bonds.
Proceeds—For construction program.
Underwriter—TO
^Montana Power Co.
Indiana &
Michigan Electric Co. (10/15)
May 20 it was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
—For - reduction of bank loans and for
construction
Inc.; Kunn,
May 20 it was reported company may issue and sell in
For
March 29 stockholders approved an
(jointly); The First Boston Corp.; Blyth & Co.,
l^oeb & Co.; Lehman Brothers. Bids—^Ex¬
pected to be received up to 11 a.m. (EST) on Noy. 19. y!
Corp.
was
the fall about
Lazard Freres & Co. (jointly).
Illinois Power Co.
Ripley & Co. Inc. and Stone & Webster Securities
man
Inc.
announced company may consider an offerAjng of new common stock Within the next year or so.
Proceeds—About $19,000,000, for investment in common
stocks of the System operating. companies during the
three-year period 1957, 1958 and 1959.
Underwriter—
Previous stock offering was to stockholders, without
underwriting, with oversubscription privileges. May 8 it
first mortgage bonds
The
Thursday, June 6, 1957
The Commercial and Financial Chronicle...
(2654)
it was reported
April 22
issue
company
April 30 it
tentatively plans to
sell this fall about $40,000,000
and
of bonds. Un¬
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co.
and Eastman Dillon, Union Securities & Co. (jointly).
derwriter—To
be
determined
Norfolk & Western
by
San Francisco and New York.
San
expected
are
to
Ry.
be
Illinois
Gas
will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth
&
May 15 it was reported company plans to issue and sell
$50,000,000 and $100,000,000 of debentures) be¬
,,
Power Co.
•
Corp.
between
Co.
of these shares.
States
Co., Inc., San Francisco, Calif.
Sears Roebuck Acceptance
fore the end of 1957, depending upon market conditions.
-Underwriters—Goldman, Sachs & Co., Halsey, Stuart &
Co. Inc. and Lehman Brothers, all of New York.
May 9 it was announced stockholders will vote June 11
on approving a new issue of 300,000 shares of preferred
stock (par $100). There are no present plans to sell any
Northern
;
/
pany
received
Inc.; Salomon Bros. & Hutzler.
Northern
;
April 23, E. D. Sherwin, President, announced that com¬
(6/13)
by the company on
June 13 for the purchase from it of $6,450,000 equipment
trust certificates due semi-annually to and including
June 1, 1972.
Probable bidders: Halsey, Stuart & Co.
Bids
,
Diego Gas & Electric Co.
.South Carolina Electric & Gas Co.
was reported company plans to issue and sell
...
(Minn.)
(8/20)
Jan. 14 it
V
4 it was reported company plans to issue and ,-$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
approximately $15,000,000 of first mortgage bonds."
Proceeds—For construction program.-. Underwriter—To
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
be determined by competitive bidding* Probable bidders:
,Lehman Brothers (jointly); Kidder," Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—NoLexHalsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner
March
sell
-
pected
and Beane, Kidder, Peabody & Go. and White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.:
Harriman Ripley & Co. Inc. Bids—Expected to be re¬
ceived up to 11 a.m. (EDT) on Aug. 20.
"
Ohio
Power Co.
May 15 it
issue
and
termined
,
(11/19),
of $100
bank
by
par
more
value preferred stock. Pro¬
Underwriter—To be de¬
in
bidding.
Probable
Co.
Quinton,
than $180,000,000 of new money in 1957
to the $37,500,000 bond issue of
and 1958,
February,
be raised in 1957, [The
1,200,000 shares of $25 par preferred
was
withdrawn-on June 3.]
Under¬
A total of $70,000,000 may
proposed
sale of
June
on
writers—(1)
bidders:
6
For
any
bonds, to be determined by com¬
petitive bidding. Probable bidders may include: Halsey,
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
curities & Co. and Salomon Bros. & Hutzler (jointly).
'(2) For preferred stock—Eastman Dillon, Union Securi¬
(jointly); Harri¬
Harold
20,
stock
-
ton
ties & Co. and Salomon Bros. & Hutzler
next Fall.
Edison
addition
1957.
loans.
competitive
California
President, announced that
for the balance of this year the company's present in¬
tention is to issue additional bonds and probably a pre¬
ferred stock.
He added that the company will require
reported that this company now plans to
sell $28,000,000 of first mortgage bonds and
repay
to be received until
Southern
March
was
70,000 shares
ceeds—To
•
Stuart
Corp.
&
.
&
Co.
and
Co. i2)
and"Dean
Inc.; Blyth & Co., Inc.; The First Boston
Witter & Co. (jointly); Kuhn, Loeb
Dean
For preferred stock: The First Boston Corp.
Witter
&
Co/(jointly).-r
Volume 185
Number 5644
...
The Commercial and Financial Chronicle
(2655)
Southern Pacific Co.
Bjds
(7/25)
i
~
,
:.v;Vk-
thers
are expected to be received by. the company orvJuly
approximately $9,000,000
of
to
equipment trust certificates. Probable bidders:
Halsey,
Inc.; Salomon Bros. & Hutzler. / .
Southern Union Gas Co.
:
May 16 it was reported company plans to issue and sell
$10,000,000 of debentures this summer. Proceeds—
construction
program.
May
Underwriter—May be Blair
Incorporated, New York.
"
received
'<
"
Oct.
on
8
sell
it
$18,000,000
of
Utah
first
plans
to
bonds.
issue
Proceeds
—
was announced
company
217,286 additional shares of
about
common
June
26
directors
%
'
Texas
July 16.
on
June
on
26.
Electric Service Co.
? May 27 it
(7/9)
struction.
Utah
Dillon, Union Securities & Co. and Merrill Lynch,
Pierce, Fenner & Beane, all of New York, N. Y.
•
Texas
Electric
Service
Co.
Light Co.
bank
repay
Underwriter—To
Power &
plans to issue and
loans and
be
for
ic Wisconsin
construction
May 29 it
determined
Fenner & Beane
(jointly); Eastman
Union Securities & Co. and Smith,
Barney & Co.
April
it
15
Blackstone
within
one
"■'!
even
April 3 it
when
at¬
Kaiser
lined
an
up,
upon
dealer
yield
sought
client
a
bonds,
moving
now
A
prevail
BAA
some
prices
at
4.10%,
bonds
without
to
sell*
to
around
Triple
but
On
The
ket
corporate
is
still
in
taking
issue
mar¬
unsettled
state
new
an
seeking, a level of prices and
yields that will entice the investor
,
back
to
the
buying side. And so
far, it appears, investment bank¬
have
not
right
ers
combination.
the
They
/ their
been
have
efforts
the
ues
to
bills
cost
by
the
list
flounder
basis
helped
behavior
in
of
contin¬
short
as
the
years,
seller
the
market, with little or no
indication of early easing, is put¬
ting a penalty on the potential
with
highest
buyer
riod
when
the
state
of
of
mind
a
a
to
show
ratings.
much
top-rated bond
in
favor
competi-
tion with one carrying
erately lower rating.
mod¬
a
good
$30,000,000 of 35-year debentures due 1992. Proceeds—
construction program.
Underwriter—To be deter¬
competitive bidding. Probable bidders: Halsey,
Stuart & Co.; Morgan Stanley & Co.; The First Boston
Corp. Bids—Expected to be received at 195 Broadway,
New York, N. Y., on July 9.
Southern
"In fact,-the prevailing situation
this week caused the withdrawal
a
large utility
.
pay
the
rate
dertaking
which
such
would have
an
un¬
demanded.
.f / Underwriters,
presumably
"recognizing the fact that they had
-not
gauged the market -entirely
right in the case of the recent
New Vork
| Telephone Co/ offer-
"
j
ing, turned that issue loose and
;
wound
up
the syndicate.
Won't Trade
Dealers
of
who
make
1
4(4%
the
;
price
to
But
the
ago,
issue
is
syndicate
under
for
They
99, with
to
bonds
a
Good
ferreting out "situations"
find
of
next
Market
the
be¬
observers
Next
been
tered into with Phillips
en¬
Petroleum
Homestake Exploration,
Co., and
wholly
a
subsidiary
owned
Homestake
market
an
probably
the
Mining
exploration
for
Co.,
ties.
upon
exploitation
and
company's uranium proper¬
Quinta Corp. also has leased
water
the
rights
town
on
of
its holdings
Sabre-Pinon
of
seven
1,
1957,
Grants,
Corp.,
N.
near
for
a
M.,
to
period
years,
commencing Jan.
at
annual
an
rental
of
$36,000.
issue.
MINNEAPOLIS, Minn.—Joseph
E. Masek, Manager of
Public offering of 700,000 shares
of
a
Quinta
Corp.
capital
stock
price of 50 cents per share
made
just
Hatch
June
on
&
3
by
at
the Trading
Department of M. H. Bishop & Co.,
was
Frederic
H.
:
offered
as
a
fering,
of $75
schedule
for
the
of¬
by negotiation, that day
million of 20-year notes of
Commercial
use
Credit
Corp.
Consolidated
slated
to
take
bids
million of debentures and
ondary"
which
proceeds to repay
loans.
is
calls
of
900,000
on
a
$25
"sec¬
shares
of
other
of
uranium,
mineral
oil,
gas,
properties.
and
It
is
anticipated that real estate hold¬
ings
near
the town of Grants, New
new
each six
stock
on
preference
the basis
share for
shares
held, and
$1.60 cumu¬
lative convertible preference stock
on the basis of one new preference
share for each nine $1.6 prefer¬
common
the holders of its
to
shares held.
The offer is be¬
ing made to shareholders of
ord
rec¬
June
5, 1957 and will expire
June 24, 1957.
The offer is being underwritten
by a group of investment firms
headed jointly by The First Bos¬
ton Corp. and Tucker, Anthony
& R. L. Day.
: I
Shares of the new preference
stock are convertible, on the basis
of $50 per preference share, into
stock
common
price of $42
at
a
conversion
share.
They are
option of the
company at prices ranging from
$53 per share on or prior to June
30, 1962, to $50 per share after
June 30, 1972, in each case plus
an
amount equal to accrued and
unpaid dividends.
redeemable
per
at
the
The net proceeds from the sale
the new preference stock will
the company's working cap¬
The
outside
recent investments made
on a
cash
basis and the net cost of additions
to
research, development and
duction
For
pro¬
facilities.
the
three
months
ended
March 31,1957, net sales amounted
in
Natural
no par
common
one
growth of business has
an increasing need for
funds, principally to fi¬
nance a
larger volume of inven¬
tories and receivables, the cost of
spec¬
to
general, including the
exploration, development and op¬
short- ~ eration
stock,
resulted in
/Quinta Corp. was organized for
the
purpose
of dealing in real
estate
$3 cum¬
preference
value, to the holders
new
convertible
of" its
of
crease
outstanding,
for expansion
and
for the development of properties.
big day.
The
194,200 shares of
ulative
ital.
:
The coming week promises a ulation.
relatively busy period for under-.
Net proceeds from the sale of
Writers, especially if the inves¬
the capital shares will be used
tor's mood changes a little for the
by the company to retire notes
better.
Tuesday promises to be
the
for
be added to general funds and in¬
Inc. (Nashville, Tenn.); and Miiibr,
Mee & Co. (Albuquerque, N. M.).
are
Equipment
^.Precision
Corp. today" (June 6) is offering
rights to subscribe at $50 per share
of
Co.,
Inc. (New York);
Clark, Landstreet & Kirkpatrick,
avail¬
Week
Recuperating
Share
a
General
ence
of the
Bankers Offer Quinta
bonds
still
have
Jos. E. Masek Is
sticky,
low
Agreements
an¬
indicating that the
company figured it could do bet¬
ter currently with a debt issue
carrying a gopd
sinking fund.
And, moreover, they pointed out
101.755
the
are
as
Stock at 50c
a
Fe.
of
looked
properties
Mexico/ with the
principal executive office in Santa
Inc.,
plan.
instead,
Its
in New
mill¬
de¬
month.
switch
The shares
Gas
specialty
Calendar
pre¬
company
bonds
b-ought
at
let
and
Co.
mil¬
1.2
par
that
that it would
/
proved
did,
abandon
Gen. Precision Offer
community
the
a
able at those levels.
term
Up
to
emed
stock
a
even on that
basis, and this week
the sponsors decided to terminate
settle.
$25
by
activity.
ing
the
paid
and
market
Edison
Tele-' that invariably it is easier to re¬
issue, finance a bond issue than it is a
101.113
rate
a,
And
York
of
its
of
nounced
pe¬
in
million
yield of 4.40%.
a
is
market
Bankers
interest
bonds
for
will
.
shares
Subsequently, the
preferred stock
which
had ..been
on
offering
schedule, 'evidently
because
the
prospective issuer did not want to
lion
issue
together in
fortnight
a
its
located
scheduled to market
use *
to the increasing mining and
of
Bonds
California
mercial
Bankers Underwrite
com¬
which is growing in this area due
the. ferred stock
yesterday, but
in cause of market conditions
Cautious
$70
example.
a
to
veloped for residential and
open
will
million
Mexico, and bordering the main
East-West Highway, will be de¬
Wis¬
increased
an
New
Co.'s
company
the
v
of
ago
flux, as at present.
always an easy job.
Currently,
At the moment the investor is not
for
at
are
and
it's not
Co.,
$30
Shifts
the
brought out
in
money
borrower
on
years
underwriter, is
charged with the task of getting
phone
firmness
loss
see
the dealer's rec¬
on
issue
usual
Line
for
of bonds
Michigan,
bonds.
early
the last
3.37%.
Sustained
point
some
Investors
highest
at
take
couldn't
yield of almost one-half point.
As
about
in many
to
ommended
and
Pipe
tenders
4.55%,
find
to
which
placed
are
lot at
been
not
Treasury
able
order
just
a
four
bought
bonds
has $19 million
bids
consin
success.
client
the
on
Monday, Metropolitan Edi¬
for
was
The
Corp. is
/
buy
and
offering
to
Industries
Co.
son
up
One
r
Telephone Co. (7/9)
announced company plans to issue and sell
mined by
roster.
they get
"switch"
agers.
•'
was
For
was
announced company, a subsidiary of
Valley Gas & Electric Co., plans to issue,
year, $4,000,000 of bonds, $1,100,000 of note?
it is
difficult, if not impossible, to in¬
terest institutional portfolio man¬
tractive
;
Kidder, Peabody &
.
that
(
bonds and about
stock this Fall. Proceeds—For con¬
and to repay bank loans.
Under¬
For bonds, to be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
Wisconsin
(joint¬
Bids—Tenta¬
Valley Gas Co.
-
plans to issue and
Co.; The First Boston Corp.;
Lynch, Pierce, Fenner & Beane; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Dean Witter & Co.; Lehman Brothers; White,
Weld & Co.
(2) For any common stock (probably first
to stockholders), The First Boston Corp., Merrill Lynch,
Pierce, Fenner & Beane, Robert W. Baird & Co. and
William Blair & Co. (jointly).
(10/1)
ly); Lehman Brothers; Blyth & Co., Inc.
tively scheduled to be received on Oct. 1.
...
,
company
Merrill
Kidder, Peabody & Co. and Merrill Lynch,
Dillon,
Pierce,
program
bidding.
Inc.;
the public 400,000 shares of common stock.
Under¬
writer—To be determined by competitive
bidding. Prob¬
•
a
%
plans to issue and
Co.
Service
announced
common
writers—(1)
tive
Oct. 1.
on
Light Co.
Public
was
$5,000,000
struction
•
t*
(7/10)
company
sell about $7,000,000 of first mortgage
also announced company plans to offer
was
able bidders:
For
announced
was
$30,000,000 of first mortgage bonds due 1987. Pro¬
repay
bank loans.
Underwriters—Kidder,
Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.
and Laurence M. Marks & Co., all of New York.
to
(7/15)
(jointly);
Hutzler; Eastman Dillon, Union Secu¬
Webster Securities Corp.; White,
sell
(10/1)
announced company
To
—
March 12 it
May 27 it was announced company expects to sell $10,000,000 of first mortgage bonds due 1987. Proceeds—
plant expansion. Underwriter—For any bonds to be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hempf hill, Noyes & Co. and Drexel & Co. (jointly); The First
Boston Corp.; Eastman Dillon, Union Securities &
Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
;
was
scheduled to be received
Underwriters—Kidder, Peabody & Co.; East¬
man
certain
plans also to sell in
Washington Water Power Co.
May 28 it
Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively
reported company plans to issue and sell
$10,000,000 of preferred stock. Proceeds—For new con¬
of
of
Valley
rities & Co.; Stone &
Weld & Co.
Union Securities & Co. and
was
payment
announced company
was
Salomon Bros. &
by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
•
part
as
of
$20,000,000 of debt securities. Probable bidders
for bonds may include: Halsey, Stuart & Co.
Inc.; Kuhn,
Loeb & Co. and American Securities
Corp.
tive
Underwriter—The
receive
stock
Virginia Electric & Power Co.
March 8 it
$15,000,000 of first mortgage bonds due 1987.
program.
basis;
Price—To be set by the
offering may
be underwritten. Goldman, Sachs & Co. acted as dealermanager on last standby.
rights to expire
about
Proceeds
l-for-10
a
to
stockholders
common
common
the Fall
Inc., Reno, Nev.
Power &
March 12 it
stock, first to stock-
on
is
of
ceeds—To
Utah
plans to issue and sell
it
Co.,
and
$2,500,000
Dealer-Manager—May be Kidder,
Peabody & Co., New York.
dent.
sell
to
the
Gas
Mining Districts in Grand County, Utah. Underwriter—
Stauffer Petroleum Corp., Box
8834, Britton Station,
Oklahoma City, Okla., of which S. M. Stauffer is Presi¬
(6/27)
(other than Eastern Utilities
parent)
its
Blackstone properties.
was announced company plans to issue and
300,000 shares of capital stock. Price—At par ($1
per share).
Proceeds — To explore and develop com¬
pany's 64 uranium claims in two groups,—approximately
1,280 acres in Hells Roaring Canyon and Yellow Cat
and
also announced Blackstone plans to offer
stockholders
Associates
sell
mortgage
Tampa Electric Co.
record
Grand,
Blackstone.
The latter, in turn,"
by negotiated sale the first three
mentioned in this paragraph.
was
common
latter
of
dispose
the
Underwriter
April 29 it
company
& Co. and A. C. Allyn & Co. Inc.
(jointly); Mer¬
Lynch, Pierce, Fenner & Beane. BidR—Expected to
be received up to 11 a.m. (EDT) on
July 17.
of
to its
Proceeds—
assets
to
securities
April 15 it
working capital.
rill
i holders
President, announced
underwriting firm
May 21 it was announced company plans a public offer¬
ing of securities to provide about * $6,700,000 of new
Loeb
May 8 it
Auchincloss,
under way with an
,
To repay bank loans and for new
construction.
Un¬
derwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Goldman,
Sachs & Co.; Stone & Webster Securities
Corp.; Kuhri,
:
S.
public offering of capital stock.
a
certain
new
—May be Lee Higginson Corp., New York and
Boston,
who handled previous stock
financing.
/y, y'-y,'--.'
Transocean Corp. of California
(7/17)
announced
was
Samuel
for
proposes
were
1.
Tampa Electric Co.
May
and $900,000 of preferred
stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
.
15.
'v;y,>v
For working capital. Business—Electronics.
—
be
17
July
on
negotiations
Southwestern Bell Telephone Co.
(10/1)
o
May 24 directors approved the issuance of
$100,000,000
new
debentures.
Proceeds
For expansion program.
Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids — Tentatively expected to
■
up
looking to
about
& Co.
received
Tracerlab, Inc.
.
For
be
to 11:80 a.m. (EDT)
Registration—Planned for June 14.
Stuart & Co.
;
(jointly); Harriman Ripley & Co. Inc. and Stone
Securities Corp.- (jointly).
Bids—Expected
Webster
-
25 for the purchase from it of
43
Jos. E. Masek
is recuperating at home following
a
serious operation.
glad
to
He would be
hear from his friends at
$43,458,000 and net income to
$1,108,000 compared with net sales
of $32,616,000 and net income of
$347,000 for the same quarter of
1956.
his home, Route 1, Excelsior, Minn 000
Net
sales
for
the
calendar
1956 amounted to $153,262,and net income to $2,395,000.
year
44
Financial Chronicle...Thursday, June 6, 1957
The Commercial and
(2656)
J'.ijS*.-
With E. T. Cronin Co.
-
*
ward
Street.
South Spring
Fund Assets
Mutual Funds
joined the staff of Ed¬
Cronin
Company, 548
T.
Total
Pruden¬
tial Funds Corp. has been formed
in
to engage
securities business
a
Avenue.
Goldfinger,
Officers
Henry
are
president and Matilda Goldfinger
secretary and treasurer.
Affiliated Fund
Asset Value
Up
Changed Outlook
—
from offices at 17 Watson
from
Proceeds
.
used
to
sales
recent
-
shares hove
Fund
Delaware
of
been
complete
positions
in
5Vz% convertible
debentures and Tung-Sol Electric
v
Affiliated
S. Industries
U.
Moreau
D.
common,
Chairman,
FUND
for
market,"
30,
after
1957,
adjustment
capital gain distribution paid
Dec.
10, 1956.
Total net assets
a
were
1957
$372,414,324 on April 30,
compared with $357,977,445
Oct.
on
"the unsatis¬
car
"I11
de¬
31, 1956.
the
end of
six
V
months
since
the
last fiscal
year," H. I.
President, writes
shareholders,
"our
stocks
have
ever,
he told the fund's board, fared particularly well in the
U. S. Industries' outlook has been
market,
I think that this trend
changed by the acquisition of di¬ will continue as more and more
versified
machine-making
com¬ investors conclude
that some of
scribing it as an "unremunerativc
Experience"for shareholders. How¬
panies,
"
FREE INFORMATION
well as by the abandon¬
freight car building "The
debentures
Established 1930
the
York 5, N. Y.
only 3\k%
current price, give us a
and
Broadway, New
at
common
he
The
its
above
good yield
fuel
Sol's current
said
and
than
■
The mutual fund executive and
counsellor
in
stocks"
Investors
Established 1925
invested
mutual fund
in
securities
of
list
a
for
selected
GROWTH of
possible
CAPITAL and
INCOME in the years
ahead..
$4
share
a
and
stocks
of
are
the
and
a
materials,
so-called
stocks
of
durable
Prankard
rather
"growth
pointed
companies
goods.
out
Mr.
that
the
company's
selection of stocks is
based solely 011 values in relation
in
increase
A
objective
large
W whose
(jrsf
,s
to
return
current income
risk
as
os
an
almost unchecked
rise
of
3V4 months.
But, he told directors,
develops into more of a de¬
if it
cline than
A
prospectus
on
each
fund is available from
your
seen
to date, Delaware
Fund will again consider modify¬
its
present
liquid assets.
ing
of
percentage
Boston, Mass.
nounces
aircraft
west
Equity Co^p. Reports
The
The
consolidated
Equity
to
and
wholly-owned subsidiary,
General
of
its
Jund
in
Equity
Corporation, for the three
months
ended
March
31,
1957
show net assets at that date equiv¬
alent
to
$264.89
per
share
of
$2
convertible, preferred stock (pref¬
erence,
and
in liquidation $50
accumulated
$5.93
common
Comparable figures
1956
were
$259.68
share
per
for
stock.
Dec.
31,
$2 converti¬
On
1.35%
of
but
anticipated.
for
energy fuels and the
American
of
Potash
and
30,
1957,
CONSECUTIVE
niiADTCDiv
mum
& HOWARD
BALANCE!) FUND
CENTS
17
SHARE
A
'd
&
HOWARD
STOCK FUND
%
%I3 CENTS A SHARE;
iurJat
^rsoi iw
-
10,
24 Federal Street, Boston, Mass.
net' assets
Total
Shares, Inc.,
Dividend
6f
Jill"
mutual fund man¬
a
April
30, 1957 stood at $214,005,610,. or
$2.71 per share, ;accoEdjpg' td'
;the
report lor'th^'six months ended
April 30, 1957' mailed to share¬
holders. Corresponding figures on
•'■
aged by Calvin Bullock, oil
Oct. 31,1956 were
Running out of
File Space for your
$204,637,055 and
$2.63 respectively.
The long-term outlook for qual¬
Periodic Investment
ity common stock investment con¬
tinues, in the opinion of manage¬
ment, to be favorable, Hugh Bul¬
lock, President^ told the share¬
holders.
Additions
holdings of 32
15
were
Account Records?
ft.
NOW
common
new
dealers and
.
of
"open account" clients
to
reduces THIS
stocks, and
during the
of
stocks
109
pe¬
cor¬
$176,803,012 on Oct. 31, 1956.
new industry category, "air¬
A
craft and
defense," was added to
portfolio, Mr. Bullock pointed
out.
This group consists of the
the
common
boron
stocks
of
three
leading
companies, all new acquisitions in
the period.
In addition to being
important in the aircraft indus¬
try, .a part of their operations is
devoted to the growing field of
guided missile development. Other
important additions, he said, were
partici¬
com¬
Harshaw
Co., in the manufacture
made
oil
in
the
chemical
and
drug
fo
atiTONI
THIS
ORE^
RCCOUNT
)
V
Chemicals and drugs
comprise 8.16% of total as¬
groups.
petroleum. 18.39%
W.»■♦*.*!
of as¬
gle
II
ONE
had total net
April 30,
Ltd.,
assets of
a
$33,618,832
1957, according to a
letter to stockholders accompany¬
objectives of this Fund
possible long-term capital and
growth for its shareholders.
ing the 98th consecutive quarter¬
are
ly dividend from
Prospectus
share, payable June 1, 1957.
income
WALL STREET, NEW YORK 5
Name
r.;,s
!:£
•Ea¬
Fund,
Investment
Established 1894
|Q
i-
mutual
on
BULLOCK, LTD.
H.AN
-
-
fund managed by Calvin Bullock,
A Common Stock Investment Fund
this ad for free booklet-prospectus to
CALVIN
upon
income.
request
Lord, AbbeTt & Co.
-
net
investment
"The most convenient record system
It consists of 10 cents per
During the period Jan. 31, 1957
to April 30,
1957, the fund inTreased its holdings of common
yet
developed."
For
particulart, write
Tke Keystone
Company,
of Boston
1
"
Address,
New York
—
Chicago
.'i
Keystone Service fo
porations, having a market value
of $187,712,461,
were
owned on
April 30, 1957, as compared with
101 corporate stocks with a value
Fund
stocks selected for investment
•
—a
stock investments
undertaken
Common
made
were
common
new common
Bullock
quality and income possibilities. Mail
—
Atlanta
—-
Los Angeles
-
stocks from 81.5% to
.
j
'
ingredients for such fuels.
mutual investment fund of diversified
DIVIDEND
...
sets.
a
*
CONSECUTIVE
I031?,
QUARTERLY
Bullock Says
sets and
is
Canadian
Dividends payable June 25 to sharchold-
now
.
in¬
QUARTERLY DIVIDEND
EATON
Outlook Good
panies including Olin Mathieson,
share
stock.
of
pation of the Fund's portfolio
Chemical
common
production
April
EATON
cussed is the recently declassified
process
investment
Common Stock
dis¬
Also
10
en¬
the
on
^
pro¬
is
of
net
■ 111
Industry groups in
5.36%.
An
gram
rate
from
iniSt
17.64%; public utilities 13.15%;
7.02%; electrical and
electronic ■equipment 5.86%; in¬
dustrial machinery and equipment
com¬
early expansion of the U. S.
thd
at
share and is derived
gas
atomic
program.
is
It
chemicals
of Great Britain,
tively small U. S.
and
,
Fund completed its first five years
April 30, 1957 were
iollows: Petroleum and natural
as
iJ
chart
1.
tirely
review
ail
vestments
the Euratom nations and the rela¬
ble preferred share and $5.78
per
of
a
10.74%,
6.79%;
come.
which the Fund held its larger in¬
South¬
tremendous
power programs
dividends), and high
share of
per
per
the
defense
stocks
common
under
Fund's assets.
riod.
The letter includes
and
cents per
Shares out¬
months
six
comprised
including the Paradox Basin
paring
; 30,
12.87%;
steel
on April 30, 1957,
according to the
quarterly report to stockholders
accompanying the 19th consecu¬
tive quarterly dividend, payable
equivalent equities at the end
the
of
Mexico
land in the
11.38%;
83,876 in the same six months.
Investments
and
in Utah.
statements
Corporation
of New
area
April
on
petroleum
had total net assets at $44,648,613
holder accounts grew
Minerals, Inc. which has
extensive
holdings in the Am¬
oil
are
Canadian Fund, Inc., a mutual
fund managed by Calvin Bullock,
Number of share¬
from 70,139
April 30, 1957.
Western
as
and drug
indicative
gas
natural gas 4.82%.
standing increased from 15.458,821
011
Oct. 31, 1956 to 17,884,255 on
the addition of the Fund's
Lake
allocated ,,to
>
holdings
were:
chemical
a
en¬
shareholder accounts.
portfolio of 20,000 shares of United
well
assets
,
An "Atomic Letter" just released
by the distributor of Atomic De¬
velopment Mutual Fund, Inc.. an¬
as
The Parker Corporation
Berkeley Street
Western Minerals
/,
brosia
investment dealer.
200
1957
ago, and were derived
tirely from investment income.
New, highs
were
reached in
number of shares outstanding and
since
after
of
industrial
sturdy
Commenting oil the market, Mr;
Barringer said its present breath¬
ing spell should not be unexpected
of
cyclical characteristics in the se¬
of investments^
Principal
the like period
share for
Significant increases in;the
lection
April 30, com¬
year
.
Income Fund
1
has
market
-
of the careful consideration given
of long-term growth and
period increased to 21 cents per
share compared with 20Vz cents
—
Incorporated
for the first half
fiscal year, Jo¬
stock
factors
pared with $13.23 on Oct. 31, 1956.
declared
during: the
per
made in February,
said, since which time
chemicals, natural
industries, he said,
Dividends
1949 and maintain a
The Affiliated portfolio is diver¬
profit margin. Continued sified as follows: Common Stocks
healthy expansion of the com¬ in service industries r— 31.38%;
pany's fields, he believes, will be producers of non-durable goods—
insured by the increased use of
28.09%; producers of fuel and raw
vacuum
tubes,
transistors,
and materials
18.03%; producers of
small light bulbs in automobiles,
capital goods or durable goods—
television, electronic business ma¬ .9.44%,; and cash and short-term
chines and? defense ;. Items, espe¬ government; bonds—13.B6
%/r;< /
cially missiles.
,r
.T,:.'T
250%
current
the
Fund was $13.94 on
service
the present to market prices and that "as we
good
values
among
the
$1.40 dividend rate. Mr. Barringer find
pointed out that although some of growth stocks or among the stocks
the country's strongest companies of companies producing durable
are
in the same business, Tung- goods, we add them to our hold¬
Sol has been able to expand sales ings." "• •
'
'■
possible
Incorporated
A
than
more
raw
producing
Tung-
expansion and capi¬
earnings
tal strength indicate 1957
of
investments
the
in
companies and in the stocks of
producers of non-durable goods,
good chance of sharing in
company's expected prosper¬
investment
Fund's
largely
a
ity."
in
the past few years
have reached points where they
do
not
offer as good values as
many of the stocks we own."
"were part of the program
financing this > revolution, and
since
they are convertible into
RESEARCH CORPORATION
120
advance.?
of
NATIONAL SECURITIES &
2nd,
the stocks that have had abnormal
said,
PROSPECTUS TO
INVESTMENT DEALER OR
FOLDER AND
YOUR
purchased,"
we
our
Prankard
as
ment of
$44,681,354
up
10.07%
material advance. j
a
amount
seph M; Fitzsimmons, Chairman of
the
Board,
announced
in the
Fund's semi-annual report.
Net asset value per share of the
for what
freight
.
re¬
were
7.26%, and
The major part of such
common
shown
$249,273,929 as of April 30, 1957,
April
latest
Pullman, ACF and the railroads'
own
shops as Pressed Steel Car
factory
as-
outstanding capi¬
from $204,592,575 as
1956 to a new high of
rose
of Oct. 31,
his
INVESTMENT
termed
ments,
gain
a
of
A MUTUAL
he
invest¬
market value of securities
share in the net
a
seet value of its
by
managed
Diversified Services, Inc.,
tal stock for the six months ended
in
reports
of 25 cents
'reports
Fund
mutual fund
Investors
stated at
Inc.,
Fund,
affiliate
the
Investors
of
assets
net
Barringer,
semi-monthly Directors' Letter.
Mr. Barringer recalled that U. S.
Industries
once
competed
with
WRITE FOR
to
was
Mr. Bullock
At $249 Million
Stock
Form Prudential Funds
to 4.58%.
changes
By ROBERT R. RICH
ELIZABETH, N. J.
holdings
8.45%
cash and receivables from
ANGELES, Calif. —Helen
LOS
Bond
from
duced
Chronicle)
(Special to The Financial
Flores has
holders.
I. D. S. Stock
88.2%, Hugh
Bullock, President, told the share-
50
Conjreu St.. Bo,ton, Man.
it
Volume 185
Number 5644... The
Commercial and Financial Chronicle
4o*
(2657)
of
operations, Hugh Bullock, Pres¬
ident^ told the shareholder^,' arid
May 15, 1957,-the fifth anni¬
versary of the first public offer¬
ing of shares on an open-end basis
on
marked.
was
the
Canadian Fund
first' mutual
'
fund
was
in
the
United
States, created for invest¬
in Canada. v'
/'■
ment
Shares
offered
the
fundi
first
were
$12.75
at
per'share, Mr.
April 30, 1957,
share offering price was
rise of 71%, Adding back
Bullock
the
of
said.
per
On
Energy Fund .Assets
At New
Continued
„
after
net
770
which
of
the
fiscal
the
In
year,.
net
asset
the
Growing Corporation
per
ner-Lamberfc.
share increased
$143.28
24.4%, rising from
$178.18, . while * the
to
Standard &
Poor
500 stock
Energy Fund,
had
value
of
net
$44,648,613./;;
assets
was
/
Canadian Fund, on April 30,
1957, owned common stocks of 47
Canadian corporations, plus Can¬
vestment
in
reserves.
are
the
stocks
Common
of
—
oil
and
in
Canadian
companies in the natural
fields
are
metals and
gas,
invested
were
There
are
in
now
shareholders of
these
groups.
than
more
17,500
the fund, both in¬
dividuals and institutions.
Frank MacBride Opens
is
Energy Fund shares
engaging
in
made
Oct.
available
to
in
were
Poor's
up
500
securities business from offices at
in
2101
to 185%
Capitol Avenue.
stock
moved
average
11.3% from 42.07. The increase
shares outstanding amounted
in the period.
Twin
Hathaway Inv.
(Special to The Financial Chronicle)
DENVER,
Colo.
Landreth
Alfred
Hathaway Investment Cor¬
poration, 900 South Pearl Street.
MINNEAPOLIS, Minn.
Twin
its
City
36th
Bond
annual
Club
stockholders,
value
of
...
golf
hold
tournament
and
picnic on June 20 at the
White Bear Yacht Club. The out¬
ing will be preceded by an infor¬
mal buffet supper for out of town
guests in the garden ballroom of
the
Nicollet
June
19.
Hotel,
r
•
/
Minneapolis,
.
.Reservations may be made with
Adolph Helfman, of the First Na¬
THE FULLY
tional
ADMINISTERED FUND
h
■
/.<
Robert
-••'/>•-;/(
or
in
-
investing
stocks, with the
proportions "balanced"
in accordance with
man
man¬
agement's judgment.
a
prospectuTon
request
from your investment dealer
Distributors
Group, Incorporated
63 Wall Street, New York 5,N.Y.
i
You
can own
Paul.
A.
Krysa,
'
Guest
/ -«/
Harold
•
E.
Prescott, E. J. Prescott & Co.;
Stanley R. Manske, First National
Bank, of St. Paul, Publicity; Ly¬
bonds, preferred and
common
-
St.
for the picnic, assisted by Robert
G.
Davis,
Registration;
E.
W.
Incorporated 1933
A mutual fund
of
Wood & Co., is General. Chairman
Grout Securities, ing,
,.
Bank
registration fee is $30.
YOUR share
of American business
through
W.
Cole, Kalman & Com¬
pany, Inc., Transportation; Wal¬
lace K. Fisk, John Nuveen & Co.,
Entertainment; Willys P. Jones,
Tennis
and
Horseshoes;
Larry
Shaughnessy, Jr., Shaughnessy &
Company, Golf; Leo L. Quist,
Harold E. Wood & Co., Bridge and
Gin
Rummy;
George A.
MacDonald, First National Bank of
Minneapolis, Prizes; Ray B. Gar¬
cia, J. M. Dain & Company, Inc.,
Special
Prizes;
James
Klingel,
Juran & Moody,
and Oscar M.
Bergman, Allison-Williams Com¬
INVESTORS
...
in
of
a
mutual fund investing
stocks. For copy
prospectus-booklet of
facts about the Fund, mail
this coupon today.
a
ate
-
each
fering
Hardy, McCauley
increased
...
,
since
the
Palm Avenue to engage in a secu¬
rities business. John M. McCauley
is a principal.
A
.
third
illustration
planning
is
effected
its
the
over
illustrates
your
./.ii
by four leading independ-
nf ^
Charlie
X
Fdrh
Fairbanks.
Griffith.
reputation for
' Poug
Chaplin and
ru
It enjoyed a fine
the
many years but
fiinnAi^H
nff
funneled off most
ioSS!
of
the.profits
to themselves
as the star or pro¬
In 1951, the company was
serious financial straits.
It had
ducer.
lost
for three consecutive
money
d^nd
done.
At
At
with
the
they received
owner*?
new
new
a
a
an;
arrange¬
previous
owners,
1Q51-1Q53
thev
voting control,
in
successful
if they were
showing
stock
would
would receive
for
to have full
were
and
During
a
profit in
of these three years, the
tion
full
vest
they
voting control
The
definite
mind
over
financial
before
op-
and
period of 10 years.
new
management
a
had
program
agreeing
to
the management of the
a
in
take
com¬
a
a
com¬
finance company
line of credit which
enable
its
They
number
about
a
United
Artists
immediate
to
financial
...
,
at
,
re-
Quences. In 1955 investment bank-
tne
of
obtained
ers
modest
a
.
,,
.
ber
.
of
life
lend
to
it
brough/about8 when""'tte^banks DC-7Cs
McClain
is
of
their
consulted
with
commercial
future
J. E. Flick Opens
from
-
offices
in
the
Burt
and
companies
million
ot^er
to
cover
equipment, to
tight money situation they
would not be able to
nd the
line of credit Qf the comoanv be-
. As a necessary adjunct to this
loan» the company raised $5,000,-
the
y
-
*
••••
»
•
'
.
...
firm
000 of additional equity capital by
offering subscription rights to its
common stockholders,
existing
vond
levels
Our
Artists management several
ag0 and had f0u0wed the
the
of
growth./ In
the Spring of
Braniff
1956
closely. • The had to expand its financial proinvolved / timing / the gram even more substantially to
an
industry which has I cover new orders for, Lockheed
company
planning
issue
years
in
amount and type of securities
debt
securities
the
to
total
capiand (3) the fixing of
price for the com-
talization,
conversion
in
tures.
would
be
convertible
salaries customary in the
opportunity to make
pictures
in
which
they would
have a major share in the profits of the picture. The new management's plan was to rely on a
large volume of pictures
produced by the
independent producers and stars,
rather than on the picture
production
profits which was the
customary source of income in the
industry.
a
I960.
and
In
'
each
case
quired.
requirements of
the
expansion
to $83,000,000. s
program
stock into which the deben-
mon
1959
were re-'
This increased the capital
Investment
bankers
it
made
in possible to increase Braniff's orig-
reIation to a market price of the inal loan commitment from $15
?.°?Tnm?t0C? ^ t0 be +estab: million to $40 million and at the
hshed.. The decision
to sell
was
$10^00,000 of 12-year convertible
time
same
raise
to
additional
an
$io million by the sale of common
debentures and 250,000 shares of stock through subscription rights,
common stock at $20 a share for
This
financial planning
illus"J® account or the company, and ^rates the necessity of covering
100,000 shares ot common stock forward commitments well in adfor ;be account of the manage- vance and the necessary relation
ment group. The debentures rep- between equity and debt capital.
"tofal^cap'ifXatfon of the
^total cap.taljzahon ^of^the
20
was
priced
times
5%
above
about
at
current
conversion
price
six and
earnings.
was
the
senior
and
at
set
initial
offering
price for ^be comm0n stock with
step-ups at four year intervals to
$22 l/z and $25 per share. Limits
were
placed on the amount of
1 h°Pe these examples have
been helpful in pointing up the
necessity of timely imancial p
nj,n£ and' ln
advertisement, doing^your fi a
when you can.
+
other
could' be
Winston Firm Offers
Atlas Credit Shares
in¬
in¬
a
banks
plans.
distribution profit on
DALLAS, Tex. — Jesse E. Flick
is engaging in a securities busi¬
insurance
$15
""™ed in late 1956 and
debtedness
curred.
holders
which
The
management
continue
_1+
to
hold
order
further
to conserve
expansion,
of
.
.
the Presently outsta d
In
65%
the
g s
c
cash
.
for
A.
J.
stock¬
and
debenture holders.
Winston
York
New
&
Co.,
of
Inc.,
City,' oh June 4 pub¬
licly offered 680,C00 shares of B
common
and stars the
A.
company
small num¬
a
M
share
securities business
the
for
J
B common stock on which they
do not have to pay dividends, al¬
though
they may
in amounts
equal to those paid in any year
on the publicly held stock.
Certain restrictions were placed
on the amount of stock which the
management stockholders can sell
during the first five years, and
as long as the debentures are outstanding, in order to assure continuity of management and to
protect
the public stockholders
a
new
eQuiPment to meet the improvemeiP programs of its larger comPeBtors or suffering the conse-
dustry. This was to be done by
offering
independent
producers
ESTATES,
.
_
the recent market-
was
additional
They
advised them that their plan was
to. finance low-cost pictures which
would be produced without the
usual heavy
overhead expenses
and
,
petitive problem of ordering
,.
from
group
100%
stock
The
(1) They first obtained
mitment from
open
apm™
ment group chose to take a class
inc.
ness
'
one-half
pany.
to
nf
partly
The third phase of the financial
an
vear«?
this nedod
any
.
*
that I would like to
u'u,nnr
commitments from
planning
a
option to acquire
50% of the company's stock for
$8,000 provided they were able
to show a profit in any of the
lhree
..
to be sold, (2) the relation of the heavy progress payments
Under
over.
ment
^
,
thfs n^nt
this
point
then
then
management team Was invited to
:
l
cos|-
^lileHthe
take
/
.K
llot enjoyed high market favor in Turbo-Prop aircraft jand Boeing
vecent years. It also involved (I) 707 Jet aircraft, to be * delivered
the
the
Marv' Pickford
be'
be
a
Another example of financial
and ChariieChan-
while
while
vears
Brandt Airways
*
had been introduced to the United
2S
an
nut
and
owning
up
outstanding
advantage
financial plan-
i
nartlv
earnings
ended
■
.
ot00b-
borrowed money with the net
six
past
r
or
suit that the management
the
sw Pirrz strs
D. W.
bn
jated
public
financial planning of
company
owned
finan-
first
completed,
incur studio overhead. 21
.JP AJP cl°smg is that of
comnanv
to reBramff Airways.
In 1955, the
pUrchase the Pickford and Chap- comPany was faced with the com-
salaries
program
aiP°un^ °P
fulrfnnnn^rv.n
000,000. The
this
of
isd
This enabled the
of
Corporation which
United Artists
recently
the
was
company accumulate
its profits
and not pay dividends or
high
rospenng United Artists Torn
united Artists uorp.
cial
technique
United
Artists'
the decision that the
in-
Harold
—
Building.
history
of-
financial
by
Atlas
Boulevard.
27
J°b
second
manage-
from offices at 116C Palos Verdes
3, N. J.
a
A
illustrated
,
VERDES
engaging in
hugh w. long
Accumulated Earnings' Goal
enc,e la, the chemical business 2.e?
to
make the plant work;' atad (3)
Running out of money before the
McClain Opens
PALOS
Calif.
a Sr
9^ $3,000,°00 in 1956.
,
original
new
sales price for the product to be
Produced; (2) Too
expert-
" S,.5w?
the ~ market /
has
a
over
pany illustrates three pitfalls in
financial planning: (1) Too high
an
estimate
of
the
prospective
;
"ew
Nenera
in Texas in which
I
might point out in
passing that the fate of that com¬
pro-
him
:
-
re-
sources.
ask
you
&nd
fact, just
plant without sufficient
operational
know-how
or
re¬
and
Needless to say, United Artists
has prospered under the
i
Prosnerintr
(2)
formed with offices at 1278 North
H. A.
Address.
.
1951.
in
meet
Form
before
even
f0r credit
*
Boating.
SARASOTA, Fla. — Hardy, Mc¬
Cauley
&
Co.,
Inc.
has
been
gram
acquisition and almost
three-fold
would
Name-
Elizabeth
the
needs.
common
and company,
stock
,
Prize Solicitation; J. Dan
McCarthy, Jamieson & Company,
pany,
FUNDAMENTAL
since
the
j
The
—
will
enabled
and
starting
ning early
Ouling
H.
—
Schneider have become connected
with
36th Annual
L.
William
and
stock
the' public
In
attemj
unsuccessful attemPt to start
a
with
Each of the
years
Cily Bond Club
closely
Subsequently, your
commercial
banker
marketability of keeping him advised of your
Company.
of
Join
working
both
^.eefl, borrowed at long-term)
illLLtes "4e desfr-
of
estab¬
$7,000,000 had been invested by
Iothers over the past four years in
others over toe Past lour years in
iccessful
tt
commits
history
operations
to both its old and newly
acquired
$950,216 with assets
Aw
nancial
acquisitions has apparently been
advantageous to the company and
value
distributions in the period of $4.72
share),
while
Standard
&
Warner
"
son
on
per
a
stock.
Chemical
first
per
share at $119.98 and
shares outstanding at 7,920. In the
19 months ended
May 15, 1957,
100%
after first
years
company
n/rrJ*
stock ability
;h„ar^a?!U^C„!l f
Drug Company
in¬
public
almost
f
Smith-Douglass acquired
*or Jes^ than 50 cents on the dolf?r i-Sl?;s1tantially all of which has
worth,
es-
few
securities * in
for the company in 1952
1953 which permitted them
to borrow several times their net
company to make attractive stock
19, 1955 at which time total
assets
Warner-Hudnut
™?Proving
the
the field
were
the
exchange the newly
lor Chilcott
whose
.
-
SACRAMENTO, Calif. —Frank
J>.
related to
to
*arM?J}®d
in¬
total net assets climbed 323% and
the
per
share
price
increased
52.4%
(including
capital
gains
(Special to The Financial Chronicle)
MacBride
offer
of energy and its sources.
resource
mining, paper and pulp. At April
30, 1957, 51% of total net assets
companies
Corporation
obtained
private markets.
and
stock in 1951. ; This was
by the acquisition of
Chilcott Laboratories "through an
shares
investments
and
activities
of
lishing market acceptance for its
credit
broader pubold Warner-
a
the
followed
York, and
specializes
of
for
Hudnut
selling at net asset value (without
dustries
market
past
This program1 paid off. as iillustrated by the fact that the commercial banks did open lines of
an£ ,acquisitions.
The
in the growth was the
establishment
lie
sales charges of any kind) is man¬
aged and distributed by Ralph E.
Samuel & Co. of New
adian government bonds and cash
Largest holdings
with
company
This company has
remarkable growth through
a
mergers
first step
aver¬
open-end
an
l>-
that
of several acquisitions
expansion program over the
in its
same
value
has
is
financing
May 15, up 55.9% from $2,579,156 on Sept. 30, 1956, the end
on
period
example
Smith-Douglass
Total net assets of Energy Fund
a record
high of $4,021,-
the
market
Smith-Douglass Experience
reached
assets
original offering were
$10,611,000. On April 30, 1957, the
7
page
Another
age
increased 3.3 % from > 45.35
$21.84, a
to 46.83.
During the period de¬
the $1114 in net securities
profits mand
for
Energy Fund shares
paid during that period, this gain
pushed the total of shares out¬
exceeds 80%.
In addition, quar¬
standing to a record 22,572 against
terly'dividend
income
18,001 at the beginning of the pe¬
totaling $1.90 per share have been
riod, a rise of 25.4%. >/
<
paid to holders.
Total
from
High
stock
Credit
on
The
a
net
10
best
$2.25
efforts
proceeds
added to working
of
cents)
at
(par
Corp.
per
basis.
are
be
to
capital and used
f0r general corporate purposes,
Atlas Credit Corp.,
ppnnqVivpnia
incorporated
Feb
on
25
1953
y
*
'
'
engaged primarily in financi g
.
...
is
the
modernization
0f
ment
.
e
area
.
homes
and
and
greater
improve-
other
build-
Philadelphia
nMr
and communities
by Delaware Valley.
The Commercial and Financial Chronicle
46
Thursday, June 6, 1957
...
(2658)
The following
steel
Indicated
Equivalent to—
x
gallons each)
42
Crude
9
June
^ay ^
4ay 24
^ay
-May
May
May
output (bbls.)
output (bbls.)
Distillate fuel oil output (bbls.)
——
Residual fuel oil output (bbls.)--———-——
Gasoline
Kerosene
at
Kerosene (bbls.)
of
24
24
24
pipe lines—May
May
May
—May
,
Distillate fuel oil (bbls.) at—
Residual fuel oil (bbls.) at——
—
96.7
AMERICAN GAS ASSOCIATION—For month
Total
2,380,000
2,220,000
*'2,252,000
§2,274,000
24
24
<24
24
CONSTRUCTION
ENGINEERING
NEWS-RECORD:
—
7,457,350
7,511,100
7,536,550
7,070,800
:i!7,910,000
8,131,000
27,057,000
1,875,000
13,003,000
7,798,000
7,634,000
26,211,000
May ju
—
—
May 30
May 30
Ma^ 30
Federal
BUREAU OF MINES):
lignite (tons)
COAL OUTPUT (U. S.
Bituminous coal and
May 25
—
anthracite (tons)
Pennsylvania
8,339,000
8,042,000
194.373,000
196,383,000
200,222,000
183,510,000
23,935,000
22,854,900
86,830,000
20,163,000
20,699,000
91,532,006
74,898,000'
72,027,000
39,791,000
39,426,090
36,800,000
34,787,000
27,102,000
1,878,000
12,592,000
7,584,000
"25,649,000
1,648,000
AMERICAN
——May 25
RESERVE
-May 25
EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)_
12,121,000
Finished
May 27
May 27
ton)-steel (per gross ton)
Scrap
(E. A M. J.
METAL PRICES
Electrolytic copper—
Domestic refinery
general freight
^ carriers (in -tons)
;*
M ay 29
at
refinery at
York) at
Louis) at
tzinc (delivered) at—,———
Zinc (East St. Louis) at—
Aluminum (primary pig. 99% ) at
£J«v9q
May 29
(St.
——May 29
——May 29
May 29
——
York) at
(New
Straits tin
$338,914,000
193,873,000
145,041,000
96,003,000
49,038,000
100,712,000
198,195,000
171,613,000
26,582,000
Slab
$476,032,000
Railroad
489,000
123
11,286,000
297
MOODY'S
DAILY AVERAGES:
YIELD
BOND
Average corporate
Aaa
—
Baa
Railroad
Public
Group
Utilities
y
Industrials
3une
—
June
.June
INDEX
(tons)
Production
OIL, PAINT AND DRUG
AVERAGE
^
™ay?f
May <25
—May 25
period
REPORTER PRICE INDEX—
MaY 31
=
FOR
TRANSACTIONS
ROUND-LOT
'
May 25
Percentage of activity
Unfilled orders (tons) at end of
1949
5
ASSOCIATION:
—
ACCOUNT
t
Total
Other
sales
Total sales
.
-
Total
May H
purchases
May 11
May 11
May 11
Short sales
Other
sales
Total sales
Initiated off the floor—
Other transactions
Total
Short
28.975c
29.200c
29.500c
Total round-lot transactions for
Total
sales
Other
sales
i—
!
Total sales
31,233
14,410
7,698
7,805
1,754
1,759
;
loans—
modernization
'
loans
!
.
$37,761'
29,112
13,743
7,300
7,259
6,438
9,230
9,280
3,432
3,500
3.662
3,469
2,185
2,130
8,649
%
15.800c
14.000c
11.500c
11.500c
13.500c
25.000c
25.000c
25.000c
24.000c
98.500c
98.000c
99.375c
94.500c
J
:
>
15.800c
i4.oooc
EDISON
90.27
95.26
96.07
Month of
/
3,050
from
Revenue
.
108.16
88.61
94.71
95.16
99.04
99.36
97.78
98.41
98.88
106.74
104.48
100.00
95.32
95.77
96.54
of
87.59
87.99
89.09
93.97
94.56
103.30
95.92
96.07
96.54
95.77
97.00
106.04
j
„
STEEL
$724,794,000
54,059,284
52,735,867
360,351
289,103
378,937
313,591
'
305,009
28),616
28
(AMERI¬
April:
closed
(tonnage)—estimated
Shipments (tonnage)—estimated—
GAS
<
APPLIANCE
Gas
.
ASSOCI-
MANUFACTURERS
ATION—Month
Gas-fired
■
March:.
of
furnace
conversion
v
*
Gas-iired
J
7,200
3.52
3.47
4.09
4.06
4.00
3.46
Domestic
3.79
3.72
3.27
Gas
3.89
3.85
4.05
4.02
3.97
4.56
4.48
(units)—.
shipments
-
8,400-;')
5,900
h.
'5,800 '
5,200
6,700
162,300
150,800
181,900
229,100
shipments (units)———
range snipments
(units)—
heater
water
56,500'
45,300
51,600
(units)——
208,100
267,500 ! ■
V-4' vI
boiler
gas
,-■/*
'
-
(units)
shipments
burner shipments
2.86
3.32
44,107,554/
CONSTRUC-
STEEL
OF
of
Feb.
at
customers
INSTITUTE
47,692,745
$784,979,000
of
—ci™.
-
STRUCTURAL
TION)—Month
Contracts
105.17
95.32
CAN
46,216,760
$775,742,000
54,125,853
customers—month
ultimate
ultimate
consumers—
(000's omitted)——
_
FABRICATED
■v
ultimate
to
—y
T
3.35
V
"
3.48
-
«.
METAL
3.55
4.10
4.00
3.97
3.44
4.05
4.02
3.94
408.3
411.2
415.8
(E.
,/^
' :■
242,783
255,800
235,168
239,176
286,720
248,935
285,603
95
95
86
99
382,666
423,348
388,939
490,043
110.24
110.35
107.48
108.72
.j
—
(per
:."r'-/i; .'/■>
-
'J/', 29.555c
v
£239.543
Not
£239.137
Not Avail.'
/
£242.788
long ton)
'
:
'.
Common, New York (per pound)/
Common, East St. Louis (per pound)—
ttPrompt, London (per long ton)
ttThree months, London (per long ton)—_£
Zinc
(per pound)—East St. Louis
l-.;—
§§Zinc, Prime Western, delivered (per pound)
ttZinc, London, prompt,(per long ton)*.
London
29.775c
£241:956
Export refinery (per pound)ttLondon, prompt (per long ton)
Lead—
46.161c
31.452c
31.517c
■i
Domestic refinery (per pound)-
TtThree months,
282,388
M. J. QUOTATIONS)—
&
Copper—
3.39
*
PRICES
April:
3.75
4.14
4.01
1,593,190
\
'
A-'V,
'
46.964c
Avail,'
•
,
.
Silver,
New
Silver,
London
1,600,480
287,560
248,880
350,340
1,268,910
1,301,700
1,310,860
1.355,130
1,574,610
1,589,260
1,559,740
1,705,470
423,610
354,410
16.000c
16.000c
16.000c
15.300c
15.800c
15.800c
£111.872
£113.104
£115.713
£111.703
£112.345
£114.938'
13.500c
13.500c
14.000c
£98.375
£96.613
£94.669
'91.375c
14.000c
£94.789
]
13.500c
....
14.000c
i
23,500
19,550
44,700
23,400
360,350
305,850
414,560
Tin,
91.375c
.
\
£93.241
£J6.806
459,260
390,700
(per
HAntimony,
582,304
751,450
653,390
118,840
125,100
tCadmium,
refined
refined
JCadmium
509,176
779,319
695,550
650,896
754,108
904,419
784,640
2,573,793
2,522,754
470,920
425,950
41b,bBO
2,138,436
2,242,818
2,504,739
2,417,980
2,609,356
2,668,768
2,923,419,
2,880,810
.
2,768,250
.
■(
•"Nickel
-
ingot
$103,000
$1.70000
$1.70000;
$1.70000
$1.70000
$1.70000
$1.70000
$1.70000
S2.CCC00
$2.00000
$2.00000
—.
,
(
,
aver27.100c
25.200c
25.000c
Not Avail.
35.250c
35.250c
74.000c
"
:
27.100c
25.000c
——
(per pound).
$93,000
$1.70000
•
—t
pound)
-
Bismuth
33.000c'
33.500Ci
SI.70000
—
-
(per
33.000c
33.500c
$32,692
grade primary pig
99%
36.470c-
33.000c
33.500c
ounce)
.(per pound).
Aluminum,
Magnesium
.
$35,300
$265,560.
36.590c
36.590c
.
(per pound)—s
pound)-"
§Cadmium
(per
pound)
Cobalt, 97%
grade——'———
Aluminum, 99% grade ingot weighted
age
2,720,350
ODDSTOCK
EXCHANGE COMMISSION:
*
$225,000
(per
(per
$35,000
$255,000.
$35,000
i-
,
76 pounds)
93.210c
99.577c
99.452c
—
price)
$2.80772
$2.79305
$2.78885
Antimony (per pound), boxed Laredo
<
89,090
635,268
'
—
York boxed—————*
pound), bulk Laredo—
New
(per
Antimony
8.
(per flask of
'
Platinum,
597,183
U.
ounce,
90.875c'
73.781d.
79.744d
79.869d
ounce)—,—
Exchange
(check)—
New York Straits—
.1
Quicksilver
-
367,300
325,400
(per
—
Sterling
Gold
339,970
York (per ounce)
1,712,550
1,632,010
305,700
383,850
DEALERS
EXCHANGE
Odd-lot
SECURITIES
—
sales
Number
SPECIALISTS
AND
by dealers
shares
of
(customers'
ON
Number
of
■.:.y
—
$2.25
33.300c
64 500c
74.000c
V
$2.25.
y
$2.25
short
Customers'
other
May 11
May 11
total sales
sales
sales
Dollar value
Number
of
Short
May 11
May 11
;
<
shares—Total
May 11
sales
1,451,531
$67,158,913
$69,649,842
$63,741,054
$76,312,009
1,190,651
1,174,170
1,161,536
1,158,592
11,568
7,406
11,944
4,235
1,179,083
1,166,764
$57,962,814
$59,467,289
323,530
307,750
aMay 11
1,149,592
$54,884,002/
Stocks
of
300,220
3071750
300~220
FOR
Total
ACCOUNT
round-lot
OF
SALES
MEMBERS
ON THE
N.
454,620
477,290
Truck
574,240
11.890,590
12,230,160
12,823,970
PRICES, NEW SERIES —U. S. DEPT.
12,414,720
12,804,400
13,384,750
Tubes
Commodity Group—
All
products
All commodities
"Revised
of Jan.
114.3
117.2
89.9
*89.7
89.4
90.7
105-3
105.3
104.3
102.6
*
May 28
Meats
as
117.1
*117.2
May 28
..May 28
May 28
commodities
Processed foods
1,
other then farm and foods
figure.
^Includes
one-half cent
965,000
1957, as against Jan. 1,
Monthly Investment Plan.
a
pound.
barrels
,
of
1956 basis of
91.6
91.7
87.1
83.2
May 28
125.2
125.2
125.4
121.6
foreign crude runs. ǤBased on new annual capacity of 133,459,150 tons
128,363,090 tons. tNumber-of orders not reported since introduction of
JPrime Western Zinc sold on
delivered basis at centers where freight from East St. Louis exceeds
1,381,502
1,122,243
3,465,273
--
(Number of)—
—
„
349.726
287,908
-
340,025
318,370
—
*
„
292,135
352,366
758,498
787,334
886,632
2,962.282
Motorcycle, Truck and Bus Inner
(Number
of)—
3,397,399
x
.3,361,557
3,346.927
5,953,580
6,847,640
31,298.000
:
I
Inventory
3,291.161
3,821,887
6,539,561
Production
-
3,632,540
1,163,014
1,OOC,789
3,678,134
Shipments
OF
7,8x1,863
13,096,416
,1,107,356
1,136,347
—
Inventory—_l
Passenger,
8,04.,177
————.'_—*—2—
Production
524,130
7,463,577
7.538,015
17,375,929
(Number of)—
Tires
Shipments
560,780
LABOR—(1947-49= 109):
Farm
8,006,340
8,629,310
18,064,560
—
Tractor-Implement Tires
560,170
87
;
Shipments—_———
(SHARES):
May 11
22,222,000
29,868.000
67
76
—_
Production *
,
WHOLESALE
>
(Number of)—
Inventory
sales—
sales
15,116,000
32,3-C,C0C
March: '
of
1
and Bus
23,386,000
17,E€0,C0C
34,267,000
ASSOCIATION,
MANUFACTURERS
Inventory
550,260
12,479,820
Short
't
:—5
Production——
Y.
11,919,650
■
22,642,000
20,551,000
——
!
cent)
(per
INC.—Month
290~780
486,470
(barrels)—
Shipments
STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
STOCK
'
1
—
mills
of month—barrels)—
end
Passenger Tires
290,780
323,530
(at
RUBBER
1,154,357
May 11
shares
ROUND-LOT
(Dcrrejs)
from
'Capacity used
purchases by dealers—
Number
TOTAL
March:
of
Shipments
$59,600,057
May 11
sales
Round-lot
1,317,169
by dealers—
sales
Other
1,356,428
by dealers (customers' sales)—
orders—Customers'
sales
1,342,810
OF MINES)—
(BUREAU
CEMENT
Pruuuc»,lon
May 11
May 11
Customers'
Round-lot
Month
purchases)—t
Dollar value
Odd-lot purchases
PORTLAND
Y.
N.
,
{f?
7
'
:
3.82
-
•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT
-
*
INSTITUTE—
sales
February
;/.//; February
104.83
100.49
88.02
4.59
2,203
...
ELECTRIC
..Kilowatt-hour
13.500c
•
Number
■*
credit:
16.000c
16.000c
344,600
-
1.631/
-
3,527
-v
>
—ki.
:
X-
'7,320
;
_
Service
12.000c
account of members—
purchases
Short
goods
42.175c
v
•
15.000c
421.9
$40,513
31,273
14,501
payment loans
Charge accounts
14.800c
4.20
$40,503
„
.„
consumer
Personal
.
i__
..i*—
-•
Single
12.000c
"
RE-
credit
term
■
15.000c
14.800c
FEDERAL
March 30:
credit
45.400c
May 11
Total sales
326
_
THE
OF
of
as
consumer
$47.50
.May 11
May 11
May 11
sales
Other
millions
Total
Repairs and
141,720
May 11
May 11
—-—-————
5,HC
9
V 1k54jO
intermediate
and
Automobile
May 11
May 11
sales
short
$60.29
31.300c
V
purchases
114,190
8,486
tons)
ttZinc, London, three months (per long ton)
and Sterling Exchange—
^
j
>
the floor—
Other transactions initiated on
116,778,
195,974
Silver
May IX
May 11
May 11
-.May 11
purchases
Short sales
231,294
104,382
o a' Kf A. *-0»«*." ""A*Ali
Ma
mated
MEM¬
OF
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
305,466
84,404
...
—
GOVERNORS
OF
■
NATIONAL PAPERBOARD
Orders received (tons)
(net
America
Noninstalment credit
Group "
MOODY'S COMMODITY
South
$64.56
31.500c
June
3une
.
46,106-
270,461
tons)
(net
!_
tons)
(net
Other
*31.150c
_June
June
-
—
Group
Asia
3.81
HIIII
II
56,8x8
.
—
Undesignated
238
/
$42.83
a
II"""""
42,102
anthracite
America
Central
and
5.179c
$47.17
—
IIIII
~~I
North
5.670c
$47.50
—
A
■
80,795
47,907
363,360
;y
Pennsylvania
of
tons)
Europe (net tons)
in
$64.56
$64.56
"J""®
U. 8. Government Bonds
'
V
83,664
*94,607
(BUREAU OF MINES)—
/s./ Instalment credit
5.670c
5.670c
June
—
*96,924
108,599
■
2_
*ee,357'
80,264
.'y,
period (tons)1—:..
of March:
exports
To
10,598,000
f
309
—j}""®
Group
96,506
L:,:
period (tons).
To
117
•
11,574,000
June
Group
Industrials
S.
9,944,000
404,000
120
(tons of
————;
To
509,000
5,366,638-
INC.—Month of
output all grades
of
at end
(net
38,630,000
225
Utilities Oroup
Public
smelter
pounds)
Month
U.
133,136,000
166,266,000
—
Unfilled orders at end of
'
171,766,000
136,221,000
93.08
I~~——II
2
Stocks
390,820,000
302,487,000
INC.
'
$562,586,000
173,545,000
1,936,000
—June
-
4,904,450
371,700
by ,382
Shipments (tons of 2,000 pounds)—.
_
June
_
5,270,498
44,200'
>
CONSUMER .CREDIT OUTSTANDING—BQARD
'116
.
—June
,
Aaa
264,600
'.v"
...
zinc
2,000
659,360
t
10,000,000
487,000
3une
U. S. Government Bonds
Average corporate
■
9,605,000
1,750,000
DAILY AVERAGES:
MOODY'8 BOND PRICES
595,119
-
April:
./
"
(New
Lead
$298,907,000
615,799
transported
AMERICAN ZINC INSTITUTE,
788,254
690,789
722,521
QUOTATIONS):
Export
Lead
722,903
617,829
30
May 27
Pig iron (per gross
6,977,200
28,200
March:
of
Intercity
s
COMPOSITE PRICES:
steel (per lb.)—
IRON AGE
1
June
4 May
AND INDUSTRIAL) — DUN
FAILURES (COMMERCIAL
BRADSTREET, INC
7,393,100"
7,967.200
25,300
234,100
ASSOCIATIONS,
TRUCKING
Month
1,762,000
12,352,000
—
8ALE8 INDEX—FEDERAL
SYSTEM—1947-49 AVERAGE = 100
DEPARTMENT STORE
8,260,000
7,333,000
sales (M therms)
gas
To
a
7,592,400
—
(M therms)-.—
(M therms)—.
sales
gas
COAL EXPORTS
May 30
S.
U.
Ago
7,797,000
ENGINEERING
r
.
construction
Private construction —
Public construction
State and municipal
Total
*
May
received from connections (no. of cars)—May 2j
freight
Revenue
CIVIL
Year
Month
of
therms)™
(M
sales
gas
Mixed
v
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
of that date:
Previous
Manufactured gas sales
—
—
Stocks at refineries, bulk terminals, in transit, in
Finished and unfinished gasoline (bbls.) at
either for the
are
are as
Month
Au
Natural
stills—daily average (bbls.)
to
runs
of quotations,
cases
March:
INSTITUTE:
condensate output—daily average (bbls. of
and
oil
in
or,
Latest
PETROLEUM
AMERICAN
Crude
"
Agf
86.7
*88.0
Dates shown in first column
that date,
on
production and other figures for the
cover
Year
Month
Week
§88.3
9
June
—
castings (net tons)—
Steel ingots and
Latest
or
month ended
or
Previous
Week
STEEL INSTITUTE: <
operations (percent of capacity).
IRON AND
'month available.
week
Business Activity
AMERICAN
statistical tabulations
latest week
Indications of-Qurrent
Tread Rubber (Camelback)—
Shipments
Production
Inventory
(pounds)
—
28.902,000
28,335,000
30,530,000
30,545X00
27,830,000
'30,713,000
(pounds)
(pounds)
31,047,000
28,440,000
irBased on-the average of the
producers' and platers' quotations.
§Average of quotation on special shares to plater.
!!Domestic five tons or more but less than carload lot boxed.
§§Delivered where freight
from East St. Louis exceeds G.5c.
* *F.o.b. Fort Colburne, U. S. duty included.
ttAverage of daily mean and bid and
ask quotation at" morning session of London Metal
•Revised
Exchange.-
figure.
tBased on the producers' quotation.
-
»
»
,
.
;
Volume
185
Number 5644
The
...
Commercial and Financial Chronicle
(2659)
about
of
Public
one-eighth
Natural
By OWEN ELY
the
on
Southern
Natural
Gas
pipeline system extending from
gas fields in Texas, Louisiana and
the
Mississippi
Production in 1947 and
to
south. Gas is
>
markets
sold
in
of
the
at wholesale
Alabama
to
stock
common
Gas
of
in
share
a
March
earnings.
share of
a
1953,
to
customers.
of
shore Company, through which it
is engaged in deep water drilling
in the Gulf of Mexico; it also proposes to do contract drilling in
Venezuela. The company has five
barges plus one under construc-
The
is
population
about
thus
1,200,000
in
Georgia, 620,000 in South Carolina, 1,000,000 in Alabama, 180,000
in
Mississippi
and
100,000
in
Florida.
Industrial
business
counts for about 60%
ac-
Atlanta
Gas
Gas.
v
and
Gas
Of
the
the
at
85%
Light,
to
plant
gross
$209 million
abcut
sells
of
end
in
was
tide
Refinery
at
pay
lion for
assets
the
used
plant
in
facture
subject to the
of brazed
transfer
testing
Crosse.
for
last
year
million,
mated
but
year
million.
1955
i
e
needs,
coming from Louisiana wells. Independent producers in Louisiana,
Texas
and
Mississippi supplied
72%; United Gas Pipe Line, 17%;
,
(
year
Suntide's
about
were
Southern
power.
to
expects
net
for
reserves
this
refinery.
about
5V2
trillion
tillate
lion
cf.
Net
reserves
barrels.
would
oil
and
about
are
Probable
increase
the
dis-
1
reserves
oil
figure
the
tion
months
La
ended
$17,620,000
1956
Company,
which
ST. LOUIS, Mo,—John J. Senkosky is now with White & Com¬
Mississippi Valley Building,
pany,
members
to
a
cents
1956 quarter,
share,
a
of
at
the
$2.90
a
common
the end of
three
31,
On
May
and
one
in
$1,150,000
calculated
the
basis
common
formerly
AND LIGHTING
The
Board
pany,
payable July
of
record
the
at
1,
payable
at
the
remain
of
1957,
to
of
holders
business
T.
J.
out¬
Company
per
share,
$12.50
close
declared
the
on
the
N.
Y„
May
28,
1957.
The
Board of Directors has this day declarer"
a
dividend
of
Twenty-five
Cents
(25c)
per
share, being Dividend No. 117, on the Preferred
Capital Stock of this Company, payable August
1,
1957, out of undivided net profits for the
vear
ending June 30, 1957, to holders of said
Preferred Capital Stock registered on the books
of the Company at the close of
business June
28, 1957.
C.
WILSON,
Broadway.
goodjye/iii
Assistant Treasurer
New
York
5,
N.
Y.
DIVIDEND NOTICE
DIVIDEND
NO.
The Board
71
of Directors to¬
day declared the following
Hudson Bay Mining
dividend:
Smelting Co., Limited
60 cents per share
Dividend
A
Common
of
dollar
one
and
($1.25) (Canadian)
cents
share has been declared
the
on
16,
on
the
payable
1957
to
stockholders of record at
the close of business Au-
Capital Stock of this Company, pay¬
September 9, 1957, to share¬
011
Stock,
September
Kust
15, 1957.
August 9, 1957.
Ike Gttriyear Tire & Rubber Cl
-
By Arden E. Firestone,
Secretary
H
Com¬
June 3, 1957
THE GREATEST NAME IN
RUBBER
Cerro
open.
t
JOHN R. HENRY, Secretary
Pasco
de
Corporation
about
five-fold, and the gas figure increased substantially in value. :
substantially.» The company has
As of Dec. 31/ 1956 Southern
about 200,000 acres of undevelNatural Gas had outstanding $100
,
.
oped land under lease and also
.30,000
acre
The
off-shore block.;
established
company
high records in 1956 with
,
.
a
about
4
new
gas
million long-term debt
sales
12%; revenues, 16%, and net
income,
21%.
Load
factor
in-
and
up
.
creased
and pipeline capacity was
6% higher. The number of
shares increased 22% due to conversion
cf
debentures
acquisitions,
ings of $2.35
year-end
million
had
the
that
so
half
of
converted
in
into
remaining increase
resulted
earn-
By the
the $34
debentures issued
been
new
share
off 20.
were
nearly
and
in
1953
stock;
shares
from
acquisition
of
a
majority interest in Offshore ComPany-
Southern
In
1936
revenues
less
were
than
$6
million, and in 19 6 approximated, $14 million, while in 1956
cvf/amCUn- 5
'
$80 millm
_
.
compare6as^oUow^after ^adfiTstmpare as 101
(a ter adjust
ows
ment for the 2-£or-l
split
in
1936
Share
Cash
proximated
$0.78
$1.37
0.32
0.69
the
long
reduced
funds.
The
borrow
ratio
of
temporarily)
it is auto-
as
by
sinking
has
banks
of
dollar
one
seventy
five
cents
Preferred Stock and
five cents (250 per share on the
•
of twenty
Common Stock
declared,
of
11,
this Company have
of
payable
record
July
the
at
close
1,
1957
been
holders
to
business
of
on
June
1957. Transfer books will not be closed.
of
Directors
of
Pasco
a
cash
dividend
of
New
forty
cents (40^) per share on
the Common Stock of the Cor¬
Books will
day declared
dend of
share
be closed.
not
this
Michael
D. David
gidiaries
Natural Gas
earned
$2>32
and
in
the
^ and g2c
sbare
March
quarter.
compariSOns
are
with
quisitions- °n
m'onths>
July 15, 1957,
ness
were
due principally to
in the
The
THE
following
have
been
dividends
declared by the
vlest Penn
QUARTERLY
DIVIDEND
Board of Directors:
)
Electric
————
PREFERRED
the
Board
of 4 Directors
$.25
per
declared
a
quarterly
on
share
close of business
on
1957 to
Common Stock
to
stockholders of
record
quarterly dividend of
per share on the Com¬
Stock, payable July 1,
on
Secretary
the
at
close of business
the
STOCK
yiUPER SHARE
June 14, 1957.
Series
rec¬
B, 5%
Series D, 4.25%
mailed.
Checks
will
be
J. W. Reilly
Secretary
St
$1.25
$1.0625
-
4.35%
$1.0875
'
4.35%
June 29, 1957
June 7, 1957
Record Date
j.
Series E,
June 14, 1957.
closed.
Payable
Per Share
Series
Transfer books will not be
Thompson
en
COMMON
holders of Preferred Stock of
record
ord at the close of business
on
Wm. E.
following quarterly
payable July 1, 1957
$0.25
1957 to stockholders of
June 14, 1957.
the
dividends
mon
payable June 29,
at
has
business
of
Common Stock
A
dividend of
close
June 14, 1957.
112th CONSECUTIVE QUARTERLY CASH DIVIDEND
The
clared
stockholders of record at
11
Quarterly Dividend
The Board of Directors has de¬
Stock, payable July 1, 1957
to
Company
(Incorporated)
STOCK
$4.25 Cumulative Preferred
cash
BARNES, Secretary
LONG ISLAND LIGHTING COMPANY
NOTICE
DIVIDEND
Preferred Stock
Co
June 14, 1957.
of New York
A regular quarterly dividend
of $1.0625 per share on the
wance
stockhold¬
Guaranty Trust Company
ac-
increase of
DIVIDEND NOTICE
to
No
$2.15 lor .the
an
quarter
the close of busi¬
at
STUART K.
periods
p8erjod VJ$2.70
Company for the
of record
a
a parent company
|,asis, earnings
u
earlier
avadabie> due to interim
per
Capital Stock of
ers
New York 22, N. Y.
12
MJch
the
the
sub_
mQnths ended
fn
on
on
300 Park Avenue
up
the company's $6,000,maturing June 1, 1957.
Scuthern
quarterly divi¬
a
Eighty (80) Cents
ending June 30, 1957, payable
Secretary
used to pay
note
York, June 5, 1957
The Board of Directors has this
poration, payable on June 28,
1957, to stockholders of record
on
June 14, 1957. The Transfer
Secretary
up
time
to
de
CARL A. SUNDBERG
May 28, 1957
to $25,000,000 from
to May 31, 1959.
a portion of these funds will be
time
Board
declared
132
($1.75) per share on the
made
several
j2*35 previous period, the decline being
1^85
Common Dividend No.
Dividends
manage-
company
arrangements with
Preferred Dividend No. 196
ap-
The
Street, New York 8, N. Y.
30 Church
The
Cerro
Corporation,
a New York
corporation, at a
meeting held on June 4, 1957,
INCORPORATED
of
debt
a
so
matically
value
equity ratio
70%
even
reasonable
to
ALCO PRODUCTS
about $18 a
or
45%.
considers
(or
1946
Earnings
Dividends
1952):
equity
an
Thus
ment
60%
(including
$6 million notes)
shares of common
nearly $80 million
Natural
Gas has shown very rapid growth.
with
share.
000
Historically,
and
4,376,000
st0ck
about
Cash Dividend No. 148
$18 million convertible de-
bentures
$1.0875
Series F,
Series G,
4.40%
1
Declared
29,
1957
WEST PENN ELECTRIC SYSTEM
$1.10
Monongahela Power Company
VINCENT T. MILES
May 28. 1957
May
Treasurer
The Potomac Edison Company
1
West Penn Power
of
June
CULLEN,
Treasurer
TOPEKA AND
RAILWAY COMPANY
FE
York,
to stockholders
business June 13,
will
of
1957*
1957
Checks will be mailed.'
has
value
July
25,
has
share
per
par
STOCK
of
close
books
Transfer
1957.
Directors
standing Capital Stock
the
240
ATCHISON,
SANTA
1956 sales
this
of
dividend of 25<
a
HEATING
COMPANY, INC.
DIVIDEND NO.
years
of
Ex¬
;
INDUSTRIES, INC.
May 2S, 1957
DIVIDEND NOTICES
ness
Stock
'
\
THE SAFETY CAR
^
able
Preferred
the
Stock
1
1=1
25,
New
Midwest
SAFETY
k
record
shares.
THE
the
DIVIDEND NOTICES
of
1,979,846 outstanding
of
the
58 cents
or
on
bers
change.
the
in
and
Ohio —Fred W.
with
now
Green, Erb &
Co., Inc., N. B. C. Building, mem¬
28,
1957 a quarterly dividend
three-quarters per cent was de¬
on
Stock
with
$1,170,000, equal
share,
CLEVELAND,
Gehret is
J. F. McCarthy, Treasurer.
clared
Midwest
With Green, Erb
.
holders of record at the close of busi¬
of
the
(Special to The Financial Chronicle)
1957.
corresponding
income
was
NOTICES
PREFERRED
of
Exchange.
1956
compared
net
1957 quarter
59
to
March
in
period;
CAN COMPANY
was
Reduction
duriftg
1,979,846
$18,631,000
l>er
the purchase in 1954 of
substantial stock interest in Air
a
small
Sales during the
year.
AMERICAN
closing next January.
step towards diversifica-
Another
mil-
10
the
equal
the
; on
twenty-five
the
'
sales
$5,740,000,
share
and
Sub-
with
reserves
are
cool¬
larger types of
equipment.
It
manufacture
120
DIVIDEND
stantial agreement on the acquisition is expected by September,
gas
was
D.
ac~
tab controlled
reserves
in
laboratory
160,000 for its stock in 1956 and
has not yet reached full earning
approximate 435 billion cf but to-
own
research
and
cash throw-off about $10 million.
The company earned about $3,-
The
company's
substan¬
During Trane's recent
last
million
$80
sales
With White & Co.
(Special to The Financial Chronicle)
totaled $74,444,000 and net income
.
and quire U. S. and foreign crude oil
2%.
heat
a
Trane's
to
Trane's business and in
barrels.
Olin Gas Transmission, 3%,
sources,
not
air
conditioning has become an in¬
creasingly important part of
miscellaneous
,
and
000
esti-
are
In
bought all but 6% of its
its
own
production
company
; gas
.
this
at $22
working capital. Sunmodern refinery process-
a
ex¬
ing
60,000
barrels
a
day
and
capacity is being increased to 75,-
only about $7
were
million
tide is
expenditures
capital
aluminum
surface;
and
construction
for
Tenn., for
central air conditioning units for
the
residential
market, a plant
in La Crosse, Wis., headquarters
of the company, for
the manu¬
distribution
$4
the
conditioning
Clarksville,
addition
miscellaneous.
of
ing capital.
Major construction
projects scheduled for
1957
or
early 1958 are a manufacturing
tial
and
from the sale
proceeds
facilities, 8% in production' and present Suntide debt of $13 millocal storage, and the balance in lion, and will also
provide about
/Gross
priced at $46%
penditures and to increase work¬
Corpus Christi.
about $37.5 mil-
It expects to
1956,
transmission
The stock is
share.
anticipated,
Ala-
of
Trane
the stock will be added to general
funds of the company and, it is
Transcon-
account
ing units and
were
Net
Mississippi Valley
Southern
The
by 1 an
underwriting
headed by Smith, Barney
& Co.
sification (because of the limited
opportunities of earning money in
the utility business at present)
tinental Gas Pipeline Corp. as well Southern is now
negotiating for
.as to local pipeline
companies.
the purchase of the assets of Sunbama
of
principally of central
Consolidated
6)
group
further step toward diver-
a
consist
shares outstanding
a
<
As
ucts in the
(June;
acquired control of the Off-
tion, equipment having cost about
largest customers being utilities, $25
million.
Southern
bought
steel mills and makers of
cement, about two-thirds of the stock for
•ceramics, lime, paper and tex- $15 million and assumed a debentiles.
Important utilities buying ture issue.
include
stock
common
The company's
prod¬
air conditioning field
Co., manufacturer of air condi¬
tioning, heating,; ventilating and
special-purpose heat transfer
products, is being made today
of sales, the
their gas wholesale 'from Southern
conditioning^products ac¬
for
approximately 50%
of net sales.
window-type unit.
Public offering of 150,000 shares
each
share of its own stock,
.
The company in November last
served
air
of
air
Offers Trane Shares
Southern
,
eight distributing utilities, 80 municipalities and districts, 3 pipeline companies and 60 industrial
year
cur¬
Smith, Barney Group
dividends
distributed
company
is
does
In: addition .to\ cash
operates
Gas
rently selling around 45 and pay¬
ing $2 to yield 4.5%. The pricetarnings ratio is about 19.4, based
Southern Natural aGas Company
a
the. number
counted
Southern
Utility Securities
in
shares.
47
Company
43
(2060)
/
t
BUSINESS BUZZ
t
Business
Washington...
Behind-the-Scene Interpretations
from the Nation'*
ownership.
most institutional
State
Federal
or
supervision
receive
a
Credit
ob¬
in¬
termediate credit banks, which
12 Federal
associations and
4
t
so
associations
loan
the
from
farmer-owned
farmer-owned
largely
embarked
gram
ment
on
or
dorsed by
have
or
"other
term
tions"
Altogether, the Federal Gov¬
financial
$683 million to capitalize the
Credit System.
Of this
total, there remained on Jan. 1.
—12
1957, $87 million in the Federal
intermediate credit banks. $1.8
tral
production credit as¬
sociations, and $147 million in
million.
farmers
ment
$226
As of the
their
there
was
lated
from
accumu¬
37
that
Congress
money
rates
the
their borrow¬
charge
recent
the
in
of
cost
loanable
funds to the farmer through the
System
cost
banks
'
also
rises.
While
absorbing
are
to
are
a
to
in
farmers
country
who
sound need for credit.
a
not coincide with
own views.]
the "Chronicle's"
and
(up to
credit
with
Two With Hooker & Fay
addi¬
Stuart
FRANCISCO,
W.
Thomson
Calif.—
and Jameson
Young has become associated with
Hooker & Fay, 221 Montgomery
Street, members of the New York
and
Pacific
Coast
Stock
Ex¬
in¬
In 1956,
changes.
credit associa¬
276,000 loans total¬
ing about $1.5 billion. Discounts
production
Mr. Thomson
was
recent
ernment-sponsored,
many
ple fail to evaluate the
peo¬
interest
of
some
charge
they
Council—The Adver¬
Council, 25 West 45tli
Street, New York 36, N. Y,
(paper) 25 cents.
vertising
tising
Regulations Issued by Switzerland
represented by
net
for loan
used
temporary
some
from
funds
for
the
by
bonds
and
may
Because
and
banks,
System
issuing
and
debentures
tem
loan
selling
in
For
.for
the
F.
Hutton
&
Company.
tional
bank
of
in
the
deposit
System
or
is
engages
a
in
its
a
Switzerland.
Skilled Work Force of the
needs
of
of
.
debts,
and Social
E.
farm purposes.
and
Economic
Cooperation—Robert
Asher, Walter M. Kotschnig,
A. Brown, Jr. and as¬
Brookings Insti-(
William
sociates—The
tution, 722 Jackson Place,j
Northwest, Washington 6, D. C. j
(paper) $2.50.
Inflation—A Discussion by
Conference
Board
Eco¬
nomic Forum—National Indus-,
trial Conference Board, Inc., 46(L
Park
Avenue,
New York 22,
Wage
The
Y.
prices
lrou
(paper)
Your
and
surance—
surance,
$1.50
(quantity
request).
on
Family's Life In¬
of Life In¬
Institute
488 Madison Avenue,
22, N. Y. (paper) on|
New York
request.
to
Fashion Park
United States Envelope
Carl Marks
FOREIGN
current
other
However, many
Botany Mills
Campbell Co. Com.
Indian Head Mills
,
for
of
Nations
United
A. S.
agriculture.
and
United
S. Department
Labor, 341 Ninth Avenue, New
York 1, N. Y. 20 cents.
; :
in
example, land bank loans
periods of five, to 30-odd €
refinance
U.
—
TRADING MARKETS
their
closeness
barometer
Bank
—
pre¬
-
& C.o Inc.
Morgan Engineering
National Co.
g
Riverside Cement
Flagg Utica
20
BROAD
SECURITIES
STREET
TEL: HANOVER 2-0050
wJ
LERNER t CO.
N. Y.
TELETYPE NY 1-971
Investment Securities
10 Post Office Square.
-v.--1v,«IMWAV!"*»r»■
.....
SPECIALISTS
HEW YORK 5,
•
.
Telephone
■
fa
y. «. t\y.,
■ T
jrf■ 'A- '•«'
<v.
•
'■ V-'.v.
(
for Interna¬
Settlements, Basle,
plement
of
years, are designed to aid farm¬
ers in the purchase
of land, to
investment market. None of the
37banks
is
financial
ob¬
are
of
Countries: Tenth Sup-
Various
farmers, the Farm Credit Sys¬
borrowings
commercial
tained
worth
purposes,
With
Payments
Its
Regarding
borrowers.
Farm Credit Barometer
University and the Ad¬
of Yale
its proper perspective today.
Except to the extent that funds
Avenue,
People's Capitalism—Round table
in material increase in the rates
System
Ninth
1, N. Y. 30 cents.
these
increase
general
Department
S.
1955-1965
of Labor,
New York
Future
Manpower
—U.
interest rates has been reflected
Because the System was Gov¬
Ave¬
viously with Sutro & Co. and E.
made
such increases in cost of money,
the
Our
N.
(Special to The Financial Chronicle)
SAN
loans
the
termediate credit banks.
tions
the
and may or may
heavy equipment and farm and
ranch improvements.
Most of
production
import¬
pretation from the nation's Capital
provide
rediscounted
Credit
[This column is intended to re¬
flect the "behind the scene" inter¬
farmers with
credit to finance such things as
these
Farm
farmers.
to
five
years)
basis
of
parts
have
short-term
credit
loans
the
rise,
all
reflected
Intermediate-term
are
obtained
market.
been
extend
intermediate
$262
which
also
the
credit is available on
sure
Madison
States
farmers
of course,
are,
business
a
the
which
:
the invest¬
Thus, when in¬
ket
sources.
be
of
has
dollars
However, the System's of¬
feel
its
function
is
to
make
operations of the 497
production credit, associations,
terest rates in the general mar¬
de¬
the
is paid by as¬
sessment upon the 37 banks in
the System rather than from tax
in
mar-.
what the banks have to pay for
supervising agency, Farm Credit
Administration, may spend each
year,
worth
net
in
depend in large part upon
money
much
how
2,000
tion
the
tion
banks
ers
earnings amounting
although
And,
than
interest
The
ment
cides
more
by
banks
ficials
The trend toward mechaniza¬
million.
$590 million.
to
backed
actual
System
ant.
of Mechanization
Impact
cen¬
a
total¬
loans
363,000
the
by farmers' marketing and
borrow Ifrom
The estimated
total farm mortgage debt is $9.8
billion.
Other large holders of
farm mortgages are commercial
banks and insurance companies.
a
worth
net
of
and
about
that
purchasing cooperatives.
banks now
land
co¬
cooperatives currently pro¬
over one-half of the credit
used
pres¬
ing $1.8 billion.
cooperatives
banks
bank—are
combined
and
stock invest¬
in
the
System
totaling
million and, in addition,
cooperatives had
hold
The
institu¬
keting and purchasing associa¬
tions with which they do busi¬
ness, in
addition to the banks'
the banks for cooperatives, or a
date,
district
notes
million in
same
The Federal
debentures
consolidated
The
of the 13 banks for
The
$10,000.
to
farmers'
vide
The
banks.
Farm
for
when the land banks
was
is
performed
that
estimated
is
It
40
loan
of
size
have
operatives, when properly or¬
ganized, are sound credit risks.
legal limit is $200,000.
ent
includes
mercial
made available a total
total of $236
started
the
which
ago
these
services
greatest
banks
demonstrate
operation.
efficient
Maximum
the other finan¬
for
the
in¬
increasing sizes nec¬
for
years
been
has
recognizing
capital
require¬
growing
essary
1,800 farmer cooperatives
in 1956. Farm Credit Adminis¬
tration officials feel that one of
about
gradually,
ments and
agricultural
credit
corporations,
livestock
loan companies, and some com¬
Government Capital Reduced
of
the
en¬
are
tives, these 13 banks made loans
amounting to $609 million to
limit of
legal
loans
bank
creased
deben¬
banks discount such paper.
capital.
ernment
in¬
the production credit
institutions
cial
the Govern¬
of replacing
notes
The
As for the banks for coopera¬
income.
maximum
The
land
outside
of
source
444
New York 22, N. Y. (paper).
nue,
341
$155 million.
to
ma¬
riculture, part-time farmers are
now
eligible
for
land
bank
t
loans if they have a dependable
•
farmers'
by
modern
of
use
Moreover, recognizing
another trend in American ag¬
amounted
1956
during
tutions
chinery.
the 12
bank
backed
are
associations
systematic pro¬
a
efficient
asso¬
Federal
the intermediate credit
banks for other financial insti¬
are
for
C. Peterson—•
Economic De¬
Policy—Howard
made by
currently being made
to
enlarge existing farms so
that
they
can
make
more
loans
million.
credit
banks.
12
The other parts of
System
also
are
either
goal in 1947.
the
a
Aid j|
Foreign
New
A
Committee
notes,
land
Needed:
pill!"
and has never taken a tranquilizing
years
-
largely for seasonal op¬
erating credit, in addition to the
$150 million net worth of these
begin¬
in Wall Street
been
character—He's
odd
an
1, N. Y.
velopment,
for
The land
combined
net
consolidated
tures
were
of
"Sort
banks.
$365
termediate
And the last of the Fed¬
banks reached
this
ning.
eral
have
of
The
farmer-ownership. The national
farm
land
Federal
worth
year
loan
Ninth Avenue, New
Labor, 341
York
supported by
are
the financial strength of
banks
and is doing
under the mantle of complete
this
and
Labor
of
Safety Standards, 15 cents; State
Workmen's Compensation Laws,
45 cents—U. S. Department of
the
backed by
farm
national
local
ciations
anni¬
its 40th
celebrating
is
ment
Federal land
are
S. Depart¬
publications —
Standards—U.
Labor
other
by
paid
New York 22, N. Y. (paper)
,
pledge of long-term first mort¬
gages on farms endorsed by the
Federal Land Banks
versary
those
bonds
bank
cooperatives nom which farm- ;
ers' marketing, purchasing, and
service cooperatives can obtain
both long- and short-term loans.
—
Com¬
Mortgage Investments in
Years—Institute of Life
request.
on
rates that are compa¬
Consolidated
and
national farm loan associations
•
Insurance
Research, 488 Madison Ave¬
nue,
types of business.
credit; and (3) the 13 banks for
—the
Life
of
Recent
throughout the
cities
to
rable
of the System
6, N. Y. $5.00.
pany
The fact that investors
credit at
provide farmers with short- and
intermediate - term
operating
The oldest part
York
Growth
a
they are not guaranteed by the
Government, has enabled the
System to provide farmers and
their cooperatives in all parts of
the country, regardless of the
local
supply of money, with
production credit
loans; (2) 497
(10-year period)—Dr. Louis C.
61
Broadway, New
compare these securities favor¬
ably with those of the Federal
Government itself, even though
mortgage
farm
sessions
&
nation.
associations and 12 Federal land
long-term
ten
Insurance, Division of Statistics
principal
(consti¬
tuted,
includes:
(1)
approxi¬
mately 1,100 national farm loan
tain
first
dis¬
tributes these securities through
recognized security dealers and
dealer
banks
located
in
the
established
banks, from which farmers
to
resolu¬
financial
and
the
of
quired to meet their needs for
now
as
tions
As¬
(1946-1955)—Index
economic
co¬
loan funds. This fiscal agent
Board.
System,
sembly
General
Nations
United
of
in amounts re¬
securities
their
part-time Federal Farm
The
Weber
H.
Economic and Financial Decisions
fiscal
agent in New York City to sell
employ
The 37 banks
Corporation. The Farm Credit
System is no exception. It is
supervised by an independent ;
agency of the U. S. Government
—the Farm Credit Administra- "?
by
R.
Reports, Inc., Larchmont, N. Y.
(fabrikoid) $12.50.
Market
Finance in Private
Comptroller of the Currency, the
Federal Reserve authorities, and
the Federal Deposit Insurance
lion—under policies
—
Longarzo,
the
from
their
With
Living
of
Stocks
and Thomas B. Meek—Business
pension
farmers and
to
Cost
Vantage
operatives in every agricultural
community in the country.
and
ple, are federally chartered
the
Beat
funds
of
supervision.
national banks, for exam¬
The
func¬
effect,
porations, trust and
under some form
are
Bookshelf
then, the Farm
Credit System is a mechanism
for channeling investment funds
available in the general capital
market from commercial banks,
insurance companies, large cor¬
complete farmer
However,
iA/
banking
general
In
of the Farm Credit
System in the United States to¬
day — the system is moving
further
away
from
Federal
Government support toward
,
JL
tions.
analysis
lenders
Mail's
■
other
—
to stand out
seems
f| /f
xjL f (LtA/
Capital
One
in any
Washington, d. c.
fact
/i
HI
2-1990 ~
Boston 9, Mass.
Teletype
BS «9
@FedFRASER