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U NIV
l
s iT Y
OF MICHIGAN
ESTABLISHED JS39
jun 15 1955
administration^
business
Commercial
Financial
LIMMT
ilBRAIT
J
an a
Reg. U. 8. Pat. Office
Volume
181
Number 5436
New York
EDITORIAL
7, N. Y., Thursday, June 9, 1955
Price 40 Cents
,
Copy
a
What Do You Think?
1955 Is Not 1929!
As
"This
new
pany to the
the earlier
We See It
was
a
to
and
their
h
families
a r
ment.
d
willingness by the
to
of
lay-offs
and
industry
as
The
implications of the guaranteed
can
...
their
the mechanics
fiable
issues.-^-EDITOR;
HERBERT
In my
.
"as
one
opinion,
you are
against the hazards and hardships
lay-offs and unemployment.
"Both
the
union
and
the
.
share
heavy moral obligation in these negotiations."
These
sentences
the Ford Motor
extracted
company
from
letter
a
a
in this
are
fit
to
some
from
much
sounder
free
more
financial
them
from
New
York
annual
wage
cannot
be
production
Continued
appear
on
Security
DEALERS
pages
Traders
25-28;
those
Association
the
for
It
on
Stock
Market
have
taken
Annual
at
Joint
of
been
intent to over-burden
our
important
cific
a
detailed review of
call
to
statistics
However, it is
attention to spe¬
in order
to
stress
Thomas
G.
Campbell
the
great changes registered in 1953-1954 as against 1929.
As
matter of
a
common
Every housewife, every
sense:
realizes that the price of practically
wage-earner
or more
was
raised
to
150
from
50;
a
City, which
telephone
call
Continued
41
every¬
times that of 1929.
That goes for the subway fare in New York
sales
page
its
presents
dissimilarities.
these
guaran¬
and
the
serves
should
it
the reader with
fear
However, experience indicates that
PICTURES IN THIS ISSUE—Candid shots taken at Annual Field
Francisco
meaningless.
factors
thing purchased today is two
by companies whose annual
it
as
1953-1954,
1953-1954
to
answer
It is not
basis
Abraham
an
teed
structure
Fulbright Committee
during the recent Investigation.
com-,'
the
all
however.
purpose,
1953-1955, as
given to the
the
40
page
the
benefits
alleviated.
Herbert
actively under discussion in many other inon
own
almost
of
with
year-1929
steady markets estab¬
lished by the stability of consumer
income and many of our most press¬
ing sociological problems would be
Company by the President of the
Continued
Comparison
hardships arising from lay-offs.
Industry and all business would bene¬
of the basic issues argued
particular case. These same issues either
up
a
becomes
son
of
United Auto Workers of America dated June 4,
1955, point
would
on
financial
common
ties prevailed, that a basic compari¬
hourly
for
wage
far-reaching
many
fortable and
and
with similar
beyond understanding. So many
dissimilarities, rather than similari¬
were
plan their lives
.
and
economy
is
for all Americans. An assured yearly
income would enable employees, to
their families
on
existed in 1929,
quite right to regard this issue
There is no doubt that if a
in
sult
Highly Illogical Comparison
denominators for the years
annual
investors,
looked for
intelligent Market Analyst, Wall-Street pro¬
or even a politician, to draw a com¬
the basis of common denominators underlying
national
our
economically practical,
its adoption by industry would re¬
has repeatedly stated that it is
in agreement with the union's
objective of pro¬
viding greater protection for the workers and
.
parison
ABRAHAM
workers
"The company
of
For any
1
guaranteed
of
fessional, investor,
of "vital importance."
.
of millions
1929, by speculators who
quick profits.
The intial group of com¬
-
the decisions
in
A
Chairman, The Ruberoid Company
the
or
.
possible ramifications.
sequent
by which we achieve this sound, justi¬
and socially desirable objective.
by
as
industry and its workers, despite cur¬
Cognizance of the broader aspects
ments appeared in June 2 issue;
additional ones are
given herewith and others will be accommodated in sub¬
method
not,
developments.
and its
security against the hazards and hard¬
ships of lay-offs and unemployment. At the same
time the union has
repeatedly stated that it is
respect to
and
of the doctrine prompted the "Chronicle" to elicit views
and opinions of any one desiring to discuss the
subject
objec¬
future
the
high levels. Certainly the subject is one that
hardly be said is the sole concern and responsibility
rent
families
with
annual
at
of the automobile
"From the very
beginning of these negotiations
the union has made it clear that we are deter¬
flexible
1953 in comparison with the year 1329, Mr. Camp¬
analyzes, item by item, statistical material which
bears upon a comparison of these two years.
Concludes,
on the basis of his
analysis, the 1955 Stock Market as it
stands now price-wise will undoubtedly be controlled in
bell
philosophy should be of interest to every one con¬
cerned with the desire to maintain business and employ¬
ment
indicating the changes
year
Issue of importance
whole, thereby underscoring the need for
thorough airing of the subject.
economic
Consultants, New York City
witnessed in the national economy as recorded fori the
wage
unemploy¬
mined and inflexible with
respect to our
tive of achieving for Ford workers and
"Chron¬
the guaranteed annual
on
as a
a
providing for the workers
to the
Financial
After presenting certain basic data
philosophy published below.
wage
security against the hazards
hips
s
response
icle's" invitation for comment
the guaranteed annual
on
realistic step toward
and
a
Additional letters received in
and
company
which had been advanced by the union
wage,
a
bargain
By THOMAS G. CAMPBELL
Guaranteed Annual Wage
sharp departure from
positions taken by the
the
on
President, Thomas G. Campbell Co., Inc.
proposal [of the Ford Motor Com¬
UAW]
for the first time indicated
company
Moie Commentaries
on
to
100
page
34
Day of Bond Club of
Spring
Outing
of
San
and Security Traders Association of Los Angeles
appear on pages
29-32 inclusive.
State, Municipal
in
D. S, Government,
Slate and
Municipal
Securities
and
The Economic Ramifications of
The St. Lawrence
STATE
m
MUNICIPAL
AN!)
v
telephone:
Seaway
HAnover 2-3700
Public
COPIES OF OUR
BONDS
NEW
"TEN
STUDY
Housing Agency
Bonds and Notes
SAMPLE
PORTFOLIOS"
chemical
CORN EXCHANGE
Comments
on
Request
ARE NOW AVAILABLE
ESTABLISHED
MEMBERS
ANO
OTHER
YORK
STOCK
ANO
18 9 8
STOCK
ON
THE FIRST NATIONAL CITY BANK
ST., N.Y.
115
Broadway, New York 6, N.Y.
Miami
Beach
—
Rye,
N.
1
Firslt
Dept. Teletype: NY 1-708
Y.
34
TO
REMEMBER
IN
TH
To
<1
American
Commission
Exchange
Stock
50
BROADWAY
£cidhw€4t COMPANY
CANADIAN
DIRECT
WIRES TO
•
PERTH AMBOY
from
coast
YORK
to
Chase Manhattan
5
BANK
coast
Brokers
Executed
CANADIAN
On
Chattanooga
BONDS & STOCKS
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COMMON
All
Analysis
DEPARTMENT
MONTREAL AND
GOODBODY
MEMBERS
BRIDGEPORT
Dallas
offices
Exchange
Maintained
and
Teletype NY 1-2270
NEW YORK 4, N. Y.
FIRST
Orders
BROADWAY, NEW
Canadian Exchanges At Regular Rates
Bank and
Insurance Stocks
Banks
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Members
Exchange
Markets
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New York Stock
Active
Dealers,
T.L.WATSON&CO.
ESTABLISHED
Members New York Stock
120
Bond
Net
m
THE
OF NEW YORK
EXCHANGES
REQUEST
harris, upham & c?
EXCHANGE
COMMODITY
DEPARTMENT
30 BROAD
DEPARTMENT
BOND
J. R. WlLLISTON & CO.
BANK
BOND
Available
115
NEW
BROADWAY
NEW
YORK
YORK
&
STOCK
1 NORTH
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donraoji securities
TORONTO
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CO.
EXCHANGE
40
Exchange Place, New York 3, N. Y,
CHICAGO
Teletype NY 1-702-3
WHitehall 4-8161
request
IRA HAUPT & CO.
Members New York Stock Exchange
and
111
other
Principal
Exchanges
Broadway,
N. Y. 6
WOrth 4-6000
SALLE ST.
upon
Boston
Teletype NY 1-2708
Telephone:
Enterprise
1820
The Commercial and Financial Chronicle
2
.
.
Thursday, June 9, 1955
.
(2634)
The
Dealers
For Banks, Brokers.
American Express
participate and give their
Bankers Trust
Dan River Mills
they to be regarded,
STEPHEN
Lithium Corp.
Long-Bell Lumber of Mo.
Metal & Thermit
A year ago
stock
ing
1920
the
in
11
the
to
Exchange
cur-
around
York 5
27, or
approximate¬
ly 150%.
i d
b
ly
today,
higher
Stephen
Sanford
J.
outs and-
and
ing bargains do not appear to be
ple
plentiful.
However, for peo¬
with venture capital, willing
to
assume
as
[lights & Scrip
volved,
Since 1917.
Members
TEL.
Exchange
YORK
NEW
BROADWAY,
£20
S
2-7815
REctor
4%
The
company's relatively short
has not been without vicis¬
career
but
brighter days are
the horizon, alb-it tnat
future motion picture theatre at¬
tendance is an unpredictable in¬
on
tangible.
to
the
that what has occurred
immediate
continue
with
past will
Company
Commonwealth Natural Gas
Furthermore,
there
Company
it
originally as
exhibitor
title
LD 33
Thomas
was
NATIONAL BANK
of INDIA. LIMITED
in
Kenya Colony and Uganda
Office:
26
Bishopsgate,
London, E.
West
13,
End
C. 2.
(London)
Branch:
St. James's Square, S.
W.
1.
Branches
In India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
£4,562,500
Paid-Up
£2,851,562
"Reserve
Capital
Fund
£3,104,687
description of
The Bank conducts every
banking
and
exchange
Trusteeships
and
also
business.
Executorships
undertaken
also Chairman
Cinerama Productions
of the
the
equipment
in
irs'a'led
the
Warner
Theatre, New York; Music Hall
Detroit; Palace Theatre, Chicago;
and Warner Theatre, Hollywood.
Installation costs plus pre-opening promotional expense average
between
$150-200,000
The company
Protectorate.
Authorized Capital
Produc¬
Board.
Uganda, Zanzibar, and Somaliland
Todd
tions, Inc. The present title was
adopted in Marcn 1952. Louis JtJ.
Mayer is now the largest stock¬
holder and
Head
process.
organizers of the company
were
Lowell
Thomas,
Michael
Todd and Frank Smith, and when
incorporated in 1951 the corporate
Lynchburg, Va.
Government
sole
films
of
The
Scott, Horner &.
Mason, Inc.
Tele. LY 62
the
and
using the cineramic
the
had
theatre.
per
bank
a
loan
of $1,600,000
and therefore was
hardly in a position to proceed
with the installation of equipment
in
additional
theatres.
Conse¬
quently, it signed a contract with
Stanley Warner Cinerama, a s' bsidiary of Stanley Warner Cor¬
poration,
whereby that
succeeded
Cinerama
company
Productions
the exclusive producer and ex¬
hibitor for a five-year period, and
as
Established
1856
H. Hentz & Co.
Members
York
New
American
Chicago
Cotton
Exchange
Exchange,
Board
of
New Orleans Cotton
and
other
that
NEW
Chicago
Miami
in
Inc.
exchanges
YORK
•
4,
Detroit
Call/wood, Fla.
Geneva,
•
•
•
N.
a
non-exclu¬
"most
favored
at
Gables
Hills,
Switzerland
Holland
to
least
permits
Stanley
install the equipment
20
the
on
theatres
Cel.
domestic
theatres
that
number
of
foreign
show the pic¬
may
Stanley
Warner
Productions each
first
four
contract,
is
directed
been
James H.
Bought—Sold—Quoted
Cinerama Productions con'inues
remaining 8% fcr
current
running expenses.
Pro¬
viding attendance at the two pic¬
tures
("This Is Cinerama,' the
first picture, is siiil showing in
many
cities) holds up, Stanley
Wainer should recover tne $3 m 1lion total by the end of ths year.
Immediately thereafter, 50%, in
contrast
the
to
addition
its
to
in
xor
tnese
snowing! io Suu
negotiation s^age, but it ap¬
pears
probable that it may not
dilfer
materially from that ap¬
a
Lowell
the
completed
picture—"Seven
third
a
Wonders of
World"—but this
probably not be
production will
released
has
Thomas
shooting
late next year.
before
The stock is
According to "Variety," a the¬
weekly, negotiations are
underway with a "ma5or studio"
for making a fourth picture using
this
wide-screen process.
new
This is
reassuring, since it takes
out of the "freak at¬
traction" class that lure curiosity
seekers
once
only, and seldom
again. The company has approxi¬
mately 1,012,000 shares of com¬
mon stock outstanding.
Ahead of
these
C
$311,000 of class B and
These
were
all
are
debentures.
originally scheduled" to mature
July 1, 1955, but many holders
have agreed to a one-year exten¬
A small bank loan will suf¬
sion.
fice to pay
off the rest.
The Class
A debentures of $600,000 were re¬
tired
$200,000
company's cash plus a
loan
guaranteed
by
Louis
Mayer.
by
As
B.
stated
we
culated risk.
ticle, future attendance is unpre¬
dictable. It is worth noting, how¬
that "This Is Cinerama" ran
continuously in New York City
from September, 1S52, until Feb¬
ever,
1955.
A 97-week
Chicago
is ending this
in
month.
That is evidence of the staying
power of the picture in different
ruary,-
sections
the
of
country.
run
Even in
such
as Pittsburgh,
Minneapolis, the
length of the runs has astounded
Cincinnati
the
and
Western
With
the
heaviest
caoital
ex¬
penditures behind it, with foreign
acceptance of the first picture re¬
peating its domestic success, with
burdensome
bank
liquidated,
loans
practi¬
Cinerama
Pro¬
ductions at long last stands on the
for
the
its true earning power,
the
of
first
being
time
in
to
a
position
demonstrate
and since
operating costs of the corporation
relatively low, a large propor¬
tion of these earnings should be
are
T.
NY 1-1557
La.- Birmingham, Ala,
to
branch
our
offices
JAPANESE
SECURITIES
-
investors with vision—
to
security is
something like a weil-liked, wellused pair of shoes; it seems to fit
so
well in so many places and
Perhaps
favorite
a
that
of Japanese
Call
stand
potential.
write
or
Yamaichi
;
just
you
can't
the
investors with knowledge
times
all
at
have unusual appeal
may
Department Stores
Securities Co.,
thought of
changing. The
way
T feel'
Established
Home
Office
Brokers
A
Ltd.
T
1897
Tokgo—70 Branches
Investment
Bankers
about Western
Department
Stores
is
here is
a
that
111
Broadway, N.Y. 6 COrtlandt 7-5680
doesn't
that
stock
fluc¬
seem
to
tuate
so
far
Stylon
downward
that I have
to
apologize for
Ja.iica
uiu.u
it,
r»or
it
'.
go
Kopp Scientific
does
far
so
in price that I find it hard 10
ine income is regular enough
up
Estey Organ
sen.
the
that
so
can
his account.
in
is
price
sales
current
The
buyer
income
having it
justify
EIco
far
Corp.
enough below present book value
so that the value buyer can enjoy
enough
Suntide Refining
The earnings are great
owning it.
dividend
the
over
re¬
that it appears that
reasonable growth fac¬
quirements
there is
a
the stock.
in
When
the fact that this is
them
take
with
you
combine
and
items
these
a
mer¬
in the depart¬
ment store field covering a large
stock
chandising
has
gotten the reputation of being a
growth area, then you have a
pretty desirable looking security.
Not
only do the stores of this
chain
cover
areas
of
of
many
Pacific
the
McCOY & WILLARD
large
Coast, but
the
Investment Securities
f
30
FEDERAL
A.
T.
&
Private
sell merchandise to a
their stores
ST., BOSTON
HUbbard
T.
2-3790
Teletype
Phone
to
REctor
—
New
Boston
York
128
City
2-4208
broad class of people in these
areas.
Their
stores
feature all
very
toward
tend
but
road" quality
They
merchandise.
which
of the buying
99
WALL
5, N. Y.
Department Stores owns
Kahn
operates
Oakland, Calif.;
in
STREET
NEW YORK
Department
Olds &
King Department Store in Poutland, Ore.* and Rhodes Bros, in
•Tacoma, Wash. There is a brand
new
store just opened in a big
shopping - area
in/ Sacfamento,
Calif., and a prooosed new store
on
LAMB0RN & CO., Inc.
the
to be
retail sales.
seems
main support for
Western
sales,r
"middle-of-the-
hit the middle 80%
public,
store
department
of
tvpes
the East Side in Portland,
SUGAR
Raw
—
Refined
—
Liquid
Exports—Imports—Futures
Ore.
DIgby 4-2727
improvements to proper¬
ties include new escalators and
elevators
in the Portland store
Recent
and the Oakland store,
also,
a new
building for the Tacoma store was
occuoied
adioining
critics.
the
remaining
"theatre operating costs" are
ar¬
«.
ZILKA
Zilka, Smither & Co., Inc.,
Portland, Oregon
/
'
Exchange-'
V
H.
wires
Direct
Vice-President,
and
from
figure
' •*
JAMES
Store
early in this
Stock
How Yer* «
Mobile, Ala.
gamble, but it ap¬
part of the West Coast, which
the pictures
take
of
a
unusuady ata'a^tive eja¬
pears an
tor
atrical
New Orleans,
exchange-
JM/WA
Ut A
HAnover 2-0700
the common stock¬
to
on
holders.
showings, "This is Cinerama" or
"Cinerama Holiday" is currently
envision
SC.
19
of
being shown in Montreal, London,
Milan, Paris, Osaka and Tok.yo,
with openings scheduled also for
Rome and Dusseldorf. The profit
*
American
Members
domestic
14
Steiner, Rouse & Co.
land, Ore. (Pa^e 2)
gin to accrue to earnings of the
company under discussion.
In
—
Z.lka, Vice President,
weekly operating profits will be¬
threshold
50%
8%,
present
Cinerama
theatres
the
the
receive
Stores
Zilka, Smither & Co., Inc., Port¬
month.
and
weekly "theatre operating profit,"
which
Cinerama's
of
has
share
cally
Under the terms of the
after
50%
smaller cities
ture.
Y.
Pittsburgh
Coral
Beverly
Amsterdam,
a
(excluding the four theatres orig¬
inally equipped by Cinerama Pro¬
ductions). There are no limita¬
Trade
Exchange
Exchange Bldg.
Beach
on
contract
Warner
tions
13. Y. Cotton
retaining
license
This
Exchange
Commodity
sive
Exchange
Stock
York
New
after
nations basis."
Stock
icia
isew
inc.,
Department
Western
passed
42%
However,
been
the part
on
public between the subject
company
and Cinerama, Inc., a
separate corporation, which li¬
producer
Dan River Mills
to
has
considerable confusion
censed
below.
plicable in the domestic theatres.
of the
Gas Company
Bankers
con-
minor varia¬
only
tions in the immediate future.
Alabama-Tennessee Natural
W
best, it is necessary
At
assume
in
Trading Marketa
American Furniture
Production!,
Cinerama
situdes,
lcoming
Exchange
Stock
in¬
risks
the
in the Over-theCounter Market, appears to offer
good possibilities.
ffipONNELL&ft?.
Stock
of
all
currently
Stanley Warner takes
100% of the profits from tne other
11 theatres to apply toward re¬
coupment of costs as explained
receipts.
to
con-
e r a
usually ab:oro between
expenses
'
whole
The
Principal Cities
Specialists in
York
Co.,
these
production cost, plus a b^n^s for
making the second picture "Cine¬
rama
Holiday,'
for an approxi¬
mate $3 million total.
level
rent
Teletype NY 1-40
American
&
Eaker
Thereupon, this 42% is a^ded
to Stanley Warner's share until
that company has lecouped
tne
has been from
s
New
nor
45-50% of the capacity box-office
this
ad¬
market is
r
—Stephen J. Sanfcrd, Manager
Investors' Research Dept., Amotc,
liquidation of the com¬
pany's bank loan, and the final
payment is expected to be made
last 12 h.o.iti.s
New
Louisiana Securities
Cinerama Productions Corporation
toward
paid
the
vance
Member
to
Wires
opportunities for
Adjust¬
Septem¬
ber,
Corporation
Private
a
the
last
WOrth 4-2300
as
stock
dividend
New York Hanseatic
Motors
capital gains.
for
100%
Tennessee Gas Transmission
in these columns we
offering
extensive
Standard Uranium
Corporation
Reaction
selected
Stancan Uranium
Stock
be,
to
In round figures,
deducted.
J. SANFORD
Cinerama Productions
North American Royalties
Broadway,
intended
not
are
Alabama &
Selections
Their
offer to sell the securities discussed.)
Manager Investors' Research Dept.
A molt, Baker & Company, Inc.
Members New York Stock Exchange
"A"
Investors Div. Services
American
as an
particular security.
a
Participants and
City. (Fage 2)
Haile Mines
120
for favoring
(The articles contained in this forum
are
Foremost Dairies
Established
week, a different group of experts
field from all sections of the country
reasons
Week's
This
Forum
A continuous forum in which, each
in the investment and advisory
Aztex Oil & Gas
Associate
Security I Like Best
in
September
floors
in
annex
Com¬
building to be modernized.
pany
plans construction or remod¬
eling of sales areas in all stores.
The
Department
686,128
which
The
per
shares
is
the
Western
consists
Stores
of common
entire
bonds
and
earnings
—no
of
capitalization
in
of
stock,
?
1
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
14-Year
Performance
of
35 Industrial Stocks
POLDER ON
REQUEST
capitalization
no
preferred?..
1954 were $1.60
share which was in line
Continued
N. Q. B.
1949,
of
an
cn
with
page
5
National Quotation Bureau
Incorporated
46 Front Street
New York 4, N. Y.
Volume 181
Number 5436
.
The Commercial arid Financial Chronicle
.
.
(2635)
INDEX
Germany's Aiming—
Disarming Europe?
!
1C55 Is Not 1929!—Thomas G.
By MELCIIIOR PALYI
"v
More
Dr. Palyi maintains
so-called
our
in
result
to
NATO's
in
destruction.
concentration
disadvantage of giving
I
free hand in the East
a
bloc—psychologically
|
One
consequence, of the Euroagreement on rearming Ger-
pean
^military
imbalance
(France
nent,
Russia
proceeds
to
mobilize
fall,- behind
to
the Conti-
on
has.
equivalent of
American
the
By the
Satellites.This
the
just
two
shifted
hold, also: that
and, thereby, the U.^.S.
is being pooh-
plus,
NATO—
./ -"v..
-
in
as well—f '
will be hamstrung by Germany? >
America
by
She
two
a r
-.-
•
Obsolete Securities
Dept.
99
WALL STREET,
j
Telephone:
Satellites
are
already
the
armed,
ore
rother
That
L>r.
Metchior
Stancan
allies
Standard
12
Rules—J. Sinclair Armstrong—
'
13
Lisbon Uranium
•
V
.r-
t
Expanding Economy
V.
14
Federal Uranium
are
the .habit
of
gaining
bv -cur
One
of
that.
Poles
bate and fear. them.
-In fact,
*?ne
its
power,
objective
the
recover
-
»!'
her: ;
on
should
be
Housing
army will be the Number
of
the
.mobile%
bounc"aries
have
entirely unreeorHJed
to the
ent
cie-faeto frontiers and et"nographic demarcation lines in Central
Europe," and to "the fundamental; ii'eea'ity of exnulsiors"
from the detached
areas, as a British
expert
on
international af-
fairs,
G.
F.
'
recently
...
^
Hudson, pointed
As
That brings up
There is
we are
dom
fused
tary
remilitarization.
nothing to
worry
told; she will have
of
military
into
„
,,
.
...
the
about,
no
action.
free-
Being
inter-Allied
mili-
independent
command
ultra-modern
weapons.
an
nor
the
Her
army
will
"European."
»
a]l
Nehru's "neutral"
Cover
and
Insurance
Man's
.
one
any
-
a-so-
purposes,;
a
Nathan
Bookself-
,-t
.i1;;
-j
-.
NSTA
war at
any
than
250
markets
over-the-counter
in
m'-ri
security
-,
;. -.:
*_
Singer, Bean
& mackte, Inc.
;
46
Notes
8
40
Teletype NY
18
Exchange PL, N. "J.
1-1825 & NY 1-182.J
Direct IF ires
4
Reporter's
Report,
to
Philadelphia.. Chicago.. Los Angefcj
1
24
_L
Public Utility Securities
in
__l
Railroad
crr>
47
17
i
WHY
Securities
24
J
i
Securities Now in Registration
Prospective
Security
48
Offerings
We
Continued
Firmly Believe
53
Securities Salesman's Corner,,,
The Market
are
.
.
.
and
on
page
The State of Trade and
Chicago
-
* •
2
___L
56
C
1
Drapers' Gardens, London,
land, c/o Edwards & Smith.
FINANCIAL CHRONICLE
'<■-
"
25
.
f
!
'
|
;
Reg. U. S. Patent Office
/
B.
DANA
/HERBERT D
9576
C.
25,
at
the
Uranium Producers
of the U. S.
Febru¬
>
office' at
post
Subscription Rates
'
New
'
4
.
'
'
•'
.
S.
Current price around
$2.50
of
per
share
*
*
SEIBERT,
Pan-American
President
Dominion
Thursday,
; '• Every Thursday
t
Worcester
June
1955
news
>
.
»
Tecords,
corporation
news,
news,
bank
Bank
clearings,
Note—On
the
;
Other
Chicago
Offices:. 135'South
3.
111.
La
Salle
St.,
1
STate
2-0613);
oe
per
per
year;
per
year.
Record
•
—
Monthly,
(Foreign postage extra.)
account
of
the
fluctuations In
of exchange, remittances for
forsubscriptions and advertisements must
maue
in
New
Yoric
Report Available
year.
Publications
Quotation
tuna*
\
in
*
$58.00
rate
eign
'
(Telephone
and
137.00 per year.
etc.).
$55.00
Canada,
Countries, $62.00
Other
,
and city
of
and ad-
issue) ah."
"er^ Monday (comstatistical is/A
market quotation
vertising
plete
9,
(general
Other
Union,
*
'■
-
*
Subscriptions "In- United States, tJ.
Possessions, Territories and Members
SEIBERT, Editor A Publisher
DANA
*
B. Dana
second-class matter
as
1942,
i
Top-Ranking Independent
Eng¬
-
by William
Company
1955
I'
Will Become One of the
York, N. Y., under the Act of March 8, 1879.
v
-
E.
.
*
Reentered
ary
COMPANY, Published
.REctor 2-9570 to
' Copyright
'!
Park -Place, New York 7, N. Y.
-
WILLIAM
Glens Falls
Uranium
6
Published Twice Weeklj
state
•
Mid-Continent
16
^
Industry^
Washington and You
20:
-•
Schenectady
L
Best________l
whatever
TELETYPE N. Y. L5
•
<
39
You—By Wallace Streete
The Security I Like
ST., NEW YORK 4, N. Y.
*
'■
i
,
12
'
trading
ML
Members New York Stock Exchange
•;
•.
•
Our Reporter on Governments,—-
further retreat!
Spencer Trask & Co.
•
:;
Observations—A. Wilfred May
with-
we
PREFERRED STOCKS
Boston
-
maintain
HA 2-0270
<
♦
Bargeron_
News About Banks and Bankers
of
I
-■
2nd Series
We
-
WILLIAM
Nashville
City of Florence 5'j
.-/
•
Y
44
y. \
,
The COMMERCIAL and
Albany
""r.v.V.
•
.
j
Standard Uranium
8
•
r\
TELEPHONE HAnover 2-4300
Standard Factors
19
•
.
Straus-Duparqui>
56
8
-
f
And,
be stronger than ever: the French
BROAD
23
Mutual Funds
pad-'
peace
price, but
cost")
25
Gulf Coast. Leaseholda
...
camp. ..The de¬
desires
strung by NATO. And NATO will
have specialized in
■
Stocks____
,.
s*c words of Labor leader Shin-r,
resolved to avoid
l
I- r'';
■
an(^ Asiatic countries. (In the clas-
into, war-like projects, being ham--
\
<3
City
Denmark
sire to i°in is shared by
Russia at
rFor many years we
Philadelphia
Lake
Cutter Lab.
(Editorial)——
Indications of Current Business
Activity
undoubtedly.
probably
practical
well: "No
to
to
Salt
CorpusChristi Refining Co*
From Washington Ahead of
the"News—Carlisle
Baly ar)d others. Tito is already/
be
forced
4
Teletype: NY 1-4GZ3
wires
-
Election Result"
Our
Norway,
It could not venture
be
Direct
'•
39
Einzig: "Sterlin? Convertibility and the British
h^rgmmng.position vis-a-vis Rus-:
?
.SA^ru-'u
be7.
ftruction of NATO. Which is what
for
39
(Box)__
Dealer-Broker Investment Recommendations
organization,, she will have fistic majority in most European
neither
1
Coming Events in tfie Investment Field
-s!a
by the neutralization of
See It
Business
Our "success in putting P™,
!n un,.fo.rms provides them with a,
an(*
We
Bank
.
mean, to be followed
crucial asnect
a
Germany's
Broadway, New York
DIgby 4-4970
Stringency Reducing
.
e unificatl0n °1 Germany — at
the price of neutralization—would'
-
Germany in NATO?-
,
of
out
42
Regular Features
£?'l0n5 to ^ATO are automati-;
cal!y ..v0'ded lf their country is,
re^m
ores-
J. F. REILLY & CO.
up rm advancing Russian,
been
never
(Box)
Starts
Politicians, Take Heed!
r0sltl0n that c-eates her bargain-;
ln? P°wer. t. e lost lands are .the
recognized d? jure by
any peace
Pr:ce Russia may be willing, to.
treaty.
Even if they were for-:,Pay—m ar.yarc?. ■ Ifso, the Ger-,
mally legalized,-'"the' German na- mans will not even have to break
tion must be
expected to regain ary. treaty ob igation, their obh-.
erit
v:
33
Norman Strunk Sees Credit
50f,?r,!n the Present-day Fyderal
Re™'.b ,c' That Is lu6'
Slovakia, the last thing t' e latter
willing to concede. The rres-
are
\.
Well Considered and Well Said!
only
^
territories, ineluding those, now- within
the
boundaries of Poland and Czecho-
17
1'
*
./.
10
tosnearhead the ev-ntual advance;
forces. Both functionswould bg stymied i£; Germany,
T'rS- ? "declare an ohne uns
"s)> the most Popular-
to
:
Municipal Bond Club of New York Guest List
fmy at/;r before.the R,hinf and
lost
:)'•
a'ter
ingredient
to hold
ouce
be
must
16
Income—Roger W. Babson
forces with the double - function:;,:
militarv
a
has
German
to
and .Czechs
the Federal Republic is
policy,
own
The Rise in Family
to visualize herr
having r rearmed?
(three or four years hence). The
be "unreliable" if
they have been
until
now..
German arms
take
care
The Ameriran Economy
During the Next Ten Years
—Leo Fishman
action
Y
position
guns
cease
bestowed
power,
patent.
into hands it considers
unreliable.
*
Col-U-Mex
she is likely to make of the bar-*
putting
But the Satellites, will
limited''
since
feelings and traoiop'posed to being domi-
by Moscow. Note at once
that the two arguments
contradict
each
other.
Besides, Moscow is
in
important:
more
be, who or what can limit,
her diplomatic freedom? The use,
nated
not
still
ber freedom of military
Credit Policies of American Banks in
Financing Foreign
Transactions—A. M. Strong---
/
ma.y
as
national
tions
Uranium
"
15
the
to
Soviets
Uranium
14
as
are
YORK
4-6551
Ramsey__ 10
Hoover, Jr._ 11
.•
's
insists
they
'worthless
ffttyi
their
The
says.
NEW
WHitehall
9
_
Iocs no other Continental mem-'ber. In any case, nothing can' be."
one without her consent.
What
g u-
V
meet!
we
!>'
6
strongest
—Douglas McKay
and most exposed single factor in"
he European set-up. As such, she?*1 Economic Freedom Should Include Individual Freedom
•"»—Walter H. Wheeler, Jr.__
vill
command
an
influence" as.
The
or
Street
Your fortuna is made
.:
^
ments.
the
on
5
.
"
Role of Government in Our
the
represent
'
*,••■';
;
■.,
.
More About the SEC's
Proxy
1
poohed
will
Cobleigh
Factors Leading to Restoration of the
Gold Standard
—Robert W. Dorsey
to Africa.);
token, does not-the,
reverse
Man
—once
The Economic Aspects of the Cold
War—Herbert
;
equipment,
same
4
What's Ahead for Business?—Dexter M.
Keczer-
;the
divisions,
Soldier, Sailor,
3
Let's Repeal the Silver Purchase
Laws!—Donald J.
Germans. ;
;
SOLDIER OF FORTUNE
Cover
.
How Dangerous Is the Present
Mortgage Situation?
—Claude L. Benner__
:
to the Soviet
armaments in order not
own
!
The Economic Outlook—W. W. Townsend
militarily.
as
•••--■■'•*'/
,
Guaranteed Annual Wage
Editor)
l'ou Are in It—Ira U.
and the rest will stop cutting back"
their
stcnds out: to maintain the
;many
well
as
the
on
•
Oil's Bright Future—M. J. Rathbonei.
;
nuclear arming, these will be offset
by the
on
to
j
A
zation and reduction of Western armaments. Conclude while
defeat of our European policies entails some
advantages, as?;.
I
AND COMPANY
—^___<_Cover
Germany's Arming: Disarming Europe?—Melchior
Palyi
Ciies
probabi!i y of Four
Power Conference drifting toward directijn of broad nsulrali-
\i".
Commentaries
(Letters
arming Germans
actually puts them in bargaining posi ion with Russia tending
success
pa§e
*
•
.
'
Campbell
~
llCHTtnSTH
B. S.
Articles and News
-
4
3
GENERAL INVESTING CORP.
80 Wall
St., N. Y. 5
BO 9-1600
I
'.u
■.
4
development.
war
Oil's
fuel
Bright Future
J.
By M.
company
industries
refining
is
of
industry
an
no more
lives
very
oil
welfare
is
in-
creasing
in
total
well
basis,
i n
supply of only
a
crisis in
This
as
a
School
of
by
new
demand
for oil
uses
far
first,
me:
more
as
find,
market
as
can
we
produce,, refine
this
from
oil
will
be
dif¬
what
they are today.
So far the industry has been able
to
meet
and
cope
with
these
changes successfully, year after
year. Under a free-enterprise sys¬
tem, I see
why
no reason
not continue to do
want
World
to
The
we can¬
indefinitely.
so
in
in
last
established
old
June
the
of
in
has
never
New
uses
are
con¬
the
at
South,
uses
stabilized but constantly increases
are
few
a
European
those
to
you.
When World War II
of
im¬
so
minutes
in
Asia
task
to
came
nations
of
an
and
faced
a
rebuilding.
Doing the job boiled down largely
to a question of energy supply.
In many of the
countries con¬
cerned,
coal, which was either
mined
domestically or imported
nearby neighbors, had tradi¬
tionally furnished most of the
energy
required
for
industrial
from
arising. The
stantly
Baton
of
1955.
7,
oil
for
Demand
static.
never
is
years
oc¬
picture
interesting I should
so
tremendous
situation
oil
them to
most
have
world
10
take
to
some
Demand
the
Furthermore,
the
dieselization
railroads is largely a post¬
our
transportation and heating.
the result of war, many of
the mines were not in working
order. In some places thin seams
power,
But
UNFINISHED FULBRIGHT BUSINESS
Of the
of
the
as
than Proxy
lion in
I N
& Co.
O R P o R AT E d
C
high.
Manpower
places.
many
was
Coun¬
night
would
ago,
assets
oi
Street, New York 5
Telephone DIgby 4-4000
Teletype NV 1-1109
Private Wire
»
In both Europe and Asia outside
System to Offices in Principal Cities
the Iron Curtain, however, domes¬
tic oil production either did not
exist or was at a very low level.
Members
Midwest Stock
the energy needed to rebuild their
cities and their economies.
The countries in these regions had
to import the oil they needed and,
Exchange
to
they required foreign
exchange to pay for their oil pur¬
Philadelphia-Baltimore Stock Exchange
.
do
proxy as
the Securities
Here
was
dilemma
a
which
well known to you in the
Underwriters and Distributors of
and Railroad Securities
Municipal, Utility, industrial
The
■'/b
subject all
well
and
500
companies with
shareholders,
to
A. Wilfred
of
more
now
company's stock.
a
referring to the proposal, broadly
together with the whole subject of
modern methods of corporate control, and effective
corporate
democracy through the exercise of the right to vote, share in
importance."
A number of questions about both principles and procedure
have been highlighted by the recent contests. There is the abuse
inherent in the acquisition of a minority interest that is motivated
Committee's
The
"This
Report
question,
by the sole purpose of initiating a fight for control. There is the
habitual possibility of generally promoting discord for a profit.
Then there is the question of what responsibility for par¬
ticipation, at least in voting, devolves on the managers of other
peonle's money; the mutual funds, pension funds and other fidu¬
ciaries.
there
Also
contest.
The
is
crucial
the
enormous
question of expense involved in a
outlay devolving on the challenger, with¬
of reimbursement, by itself tends to confine
to a type of person who can foot the
hill
as
h'c imnortant qualification.
How else finance the
legitimate challenge?
The following solution to the expense problem might be con¬
sidered:—That management get reimbursed only to the extent of
its normal solicitation outlay (with previous years as the yard¬
out
assurance
any
active
dissenting
action
bif
stick), unless it comes out victorious; with the opposition getting
reimbursed if it is successfull in obtaining as much as 30% of the
changes might encompass clarification of the
Despite the five major revisions in rules that have
Other
been made since their adoption in 1935, major doubt is in order
regarding the functioning and role of the SEC, to whom complete
power was
delegated under the Securities Exchange Act.
include exact definition of the actual begin¬
Measures could
ning of
a
contest
that both sides could know when they become
so
subjected to Commission rulings. Also restraint on management's
exploitation of company employees.
Also restriction on post¬
election redistribution of cumulative votes among a slate's can¬
didates,
irrespective
anti-democratic
of
practice.
the intent of the respective voter—an
Also enlargement of the SEC's staff
dealing with proxy supervision, to accelerate and clarify the Com¬
mission's
These
administration.
other phases of
and
proxy
procedure will be brought
light at the sub-committee's forthcoming hearings—to the en¬
hancement of
the achievement ultimately recorded by the entire
to
Fulbright "Study"!
which
needed oil not
June 2, 1955
We
are
pleased to
announce
that
their industries which would sup¬
ply
Bank and Insurance Stock
Department
for
goods
export
gravely damaged by
build
the
had
war.
ANDREW GRAY
been
To
re¬
industries
OTTO
they needed
oil—but they could only get this
if they had the money to buy it.
Primary Markets in Equity and Senior Issues
E. KTHIEMANN
CIIABLES M. I.OCIvWOOD
Substantial loans and grants by
our
Member New York Stock Exchangb
government did much to break
the
road-block
able
to
the
and
make
countries
in
avail¬
have this
question
the
General
liquid energy on which their
recovery is based. But, in addition,
many
day been admitted to
Partnership in
our
firm
unusual trade arrangements
worked out by the oil com¬
panies to help solve this problem.
Generally speaking, we do not
were
Other Offices
Boston, Mass.
Philadelphia, Pa.
*
k
Chicago, III.
•
like
Albany, N. Y.
Grand
Atlanta, Ga.
•
Dallas, Texas
Rapids, Mich.
Rochester,
N. Y.
Scranton, Pa.
•
•
Aurora, 111.
Detroit, Mich.
•
«
•
Manchester, N. H.
St. Louis, Mo.
Springfield, Mass.
•
•
•
Buffalo, N. Y.
Eau
•
St.
•
Muscatine, la.
•
Claire, Wis.
Paul,
Minn.
•
Williamsport, Pa.
•
•
Columbus, O.
Flint, Mich.
Pittsburgh, Pa.
San Francisco,
•
Cal.
Wilmington, Del.
barter
arrangements.
But
of
supplies,
lateral
many
develop
finally wind
its
back
to
in
commodities
American Stock Exchange
Chicago Board of Trade
in
up
the
Members
New York Stock Exchange
multi-
arrangements
countries,
arid
by getting oil to
soft-currency country and prof¬
many
a
can
trade
different
different
Pershing & Co.
an
oil company operating all around
the world, and needing all sorts
U.
Continued
S.
in
on
dollars
page
21
May
Exchange Act.
Capehart's bill,
banking
countries
in
side,
reporting provisions of
as
and
only had very little
foreign exchange, but their means
for earning more were seriously
curtailed.
To
earn
foreign ex¬
change they had to export—but
Equipment Trust Certificates
•
world.
is
as
being considered by a sub-com¬
mittee under the Chairmanship of Senator Lehman, would re¬
quire disclosure of the beneficial or actual owners of stocks in a
contest, and registration with the SEC of persons owning 5% or
Senator
so,
chases.
constructive
and
$5 million
the
tries began to turn to oil to obtain
44 Wall
important
introduced
b.y Senator Capehart.
Senator
Fuibright's Bill (S. 2454), promulgated a fort¬
cast.
short also in
or
regulation has incited the one definite
legislative proposal contained in the Com¬
mittee's minority report via the bill (S. 879)
tules.
extremely
is more timely
proxy
SEC
niques made the cost of this fuel-
Blair
none
$650 million thus far in 1955.
serious
the
vote
tech¬
Hearings,"
Regulation.
1954 to
On
urifamiliarity with modern
,•
specific subjects to be explored in the resumption
To the arousal of the public's interest (if sometimes
prizefights) proxy contesting lately has been
"getting hot." Highlighted by the New York
Central, New Haven, and Montgomery Ward
embroglios, the increasing proxy tension is
evidenced by the fact that the value of listed
common stocks of corporations in which proxy
contests have occurred has risen from $414 mil¬
of coal and lack of machinery and
:n- ■ ■
10
"Fulbright
concludes:
Picture
which
the
end,
in
Oil
changes
curred
describe
Increase
petroleum is a
Mr. Rathbone
Banking
La.,
will
dustry
like
everywhere.
Rouge,
more
portant and
few percent leads
country as heavily
on
address
oil
have
that
a
with the facts that
♦An
most
conditions under which the oil in¬
which arise.
oil as is the U. S. ;
essentiality of oil, coupled
dependent
these
.
our
ahead; and, second, that the
ability to them at minimum cost.
It is easy to see the complications
We
only to visualize the situa¬
tion, which would exist if oil were
not available to us, to realize its
importance. Even a shortage in
to
and the industry
be
year
anxious to insure its ready avail¬
Rathbone
J.
year
after year.
need
after
capitalize on their good fortune
to the maximum; and the coun¬
tries that have not oil are very
-
M.
creases
y,
with
us
will
for oil and
political and social as
economic problems. The
countries
and
capita
per
commerce
industry
11
u a
faces many
of oil,
volume
on a
tional
world.
both
the known
generalization. Thus oil
generally move in interna¬
must
use
problems. Through
this
to
The
there
ferent
steadily
the
that
and
throug hout
climates
oil
t
c
business have convinced
graphically located in largely un¬
derdeveloped countries, far from
the
main consuming areas. The
U. S. is the outstanding exception
peoples'
on
and
resource
most of
is
things of which
experience in the oil
years
see
quirk,
gasoline
•
•
By A. WILFRED MAY
ones
that there are two
34
Thursday, June 9, 1955
Observations.
oil
difficult problems. In fact, I think
oil reserves in the world are geo¬
And
this impact of
the
A
too.
changes present
year
some
tant way.
make old
political
affect
change
oil industry with
significance and presents
it with unusual
and
Laws
unusual
in a
impor¬
Old
like the gasoline of World
than cream is like skim
which
ber, clothes the
every one
oil.
on
today's
and
*
devel¬
war
milk.
major oil deposits in the
world are relatively few in num¬
of
I
War
that
scope,
complex and dynamic.
Practically speaking, it touches
the
natural
depletable
know,
world-wide
you
based
processes
obsolete,
supply and demand factors, concludes "we need
fear" oil industry does not have a bright future.
as
a
manufacture
fields play out, and new ones are
found
in
different
places. New
On basis of
oil industry,
the
and
i
airplane
of
alcohols, ethers, plastics, deter¬
gents, fibers, fertilizers and all
the other petro-chemicals are new
Oil Company (N. J.)
position after 1960 due to depletion of reserves and price rise,
with coal demand slowly rising by 1975 to the same level of
some 500 million tons which obtained directly after the war.
never
Jet
.
of 10 years ago.
Synthetic rubber is
executive points out that as a result of oil
discoveries in other parts of the world since World War II the
United States, once a principal exporter, has now become a net
oil importer and is likely to continue in that status. Expects
domestic energy consumption to grow by 63% between now
and 1975, with use of oil increasing from present 8.2 million
barrels daily to 13.3 millions. Holds natural gas will lose some
Leading oil
unheard
was
opment;
RATHBONE*
President, Standard
The
\
The Commercial ond Financial Chronicle
,
(2636)
120 BROADWAY,
NEW YORK 5, N. Y.
Private
Atlanta
Boston
Providence
Buffalo
Chicago
San Francisco
Wires
Detroit
St. Louis
Hartford
Wheeling
Pittsburgh
Youngstown
Volume 181
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2637)
Todd-AOCorp.,
and delineated ♦ among the
jaundiced, hard bitten'
Magna Theatre Corporation.
"pros" in the theatre trade; You
You Axe In It
V
By IRA U. COBLEIGH
•
Circuit, Inc.
Enterprise Economist
«
i
■
•
H
A broad
the
But
;*
*
5
next, there will open at
the Rivoli Theater in New York
premiere.
premiere
public
showing
of
"Oklahoma,"
that
incred¬
ibly successful
musical
Rogers
by
and
Rogers and Hammerstein who be¬
enthused
came
cially
blow,
then
and
finan¬
interested; Arthur Hornwho was selected to
produce "Oklahoma!"; Fred Zinneman ("From Here to
Eternity"),
Jr.,
chosen
to
ceive
direct
quite
it, and
hunk
a
talent.
'
you
of
per¬
arrayed
'">■';/• V:f"/ySr-'V
and song; such
And for important backers of
Todd-AO,
there
were
George
Skouras, Joseph M. Schenck, and.
on the
banking side, Marine Mid-,
land Trust Co., Bank of America.
Kuhn Loeb & Co., and Allen &
fidelity
Co.
Hammerstein.
It
will
bring
to moviegoers
such
tion
perfec¬
of
sound
and
naturalness of
picture
and
color;
such
Ira
U.
of
sense
been
reality
a
breath¬
as
photographically
You
are
not a
homa!"
achieved.
spectator at "Okla¬
You
in
are
it!
When
Gordon McRae sings
"Oh, What A
Beautiful Morning,"
you are
right
in that cornfield.
Where the "corn
is as high as an
you're
elephant!
not
It's
movie
a
elephant's eye"
enough to pat the
close
that real!
You
patron—you're
are
a par¬
ticipant.
seems
sensational.
greeted
by
destined to
It
at
raves
will
the
be
briefly describe for
You've
the
all
contemporary
—CinemaScope,
Cinerama.
broad
of
these;
Of
3D
over
and
profit
in
give
participation
the
best
opportunities
this
exciting new process for
angled motion picture pro¬
duction and projection? Let's start
wide
with Todd-AO Corporation. It was
created to sell projection
equip¬
ment
to
theaters
patented
and
to
equipment
license
to
picture
It also receives 50 per
producers.
admission
for
U.
S.
film
exhibi¬
Of
Corp.,
shares
50%
stock
of
held
is
in
the
by
Todd-AO
"A"
(voting)
Magna
Theatre
by Ameri¬
shall
can
shares, 621/2%
371/2%
and
in
and
their
foregoing,
all
de¬
by
all
is
held
the
by
"B"
Magna
American Optical
Co.
While American Optical Co.
(common 46 on NYSE, pays $2)
by
will share
is
in
belief
our
Corp.
done
is
in
position
a
more
dynamically.
about Magna.
to
So
profit
let's
talk
separate
the
three
broad
lines
projectors.
arc
where
faintly
Further,
theater screen,
the
films
join
fuzzily visible.
and
on
the
are
More¬
the sound has a tendency to
blare, and to be distorted.
over,
The Todd-AO
created-in. 1952
to
develop
The
all
Todd-AO
process
corrects
First, the film is 65mm
wide, instead of the usual 35mm,
making possible a larger picture
frame.
per
The film
at 30 frames
runs
second, instead of the tradi¬
24, creating better pano¬
tional
ramic
quality
and
eliminating
jerkiness in - swift action shots.
Most important
of
film, and
All
these
ments did
were
one
fine
not
one
camera,
projection booth.
technical
advance¬
just happen.
the Jesuit of
one
They
of the most
unique talent parlays in the whole
history of the Cinema.
We
start
with
the
limitless
and perfectionist ideas of
Michael
Todd, who sought the
energy
ultimate
in
fidelity
of
sound,
image and color. He, quite liter¬
ally, impleaded Dr. Brian O'Brien,
stellar
picture
acquired
nancing,
scientist,
and
Veep
at
Optical
Company, to
single one-film projection
"Oklahoma!"
others
showing and
likely to gain
are
gence of
earning
many
resur¬
from out¬
power
let contracts with Magna. For
you
see,
United
cuit
is
Artists
Theatre
outsider
no
in
this
Cir¬
deal.
Combined
holdings of UATC and
subsidiary (50% owned)
its
United
California
Theatres,
will
(on exercise of all
and
options)
the
issued
Theatre
or
common
This
slice
to
about
Corporation,
tioned.
and
amount
shares
common
of
Inc.,
warrants
708,560
30%
of
of
Magna
aforemen¬
production
distribution profits, involving
sizable
equity in Todd-AO, and
improving earnings vistas of
350 managed theatres gives a lot
the
of Dotential market
1,000,000
shares
UATC
17 and may well be considered as
broad,
across-the-board
sentation in the Todd-AO
and
repre¬
process
the
Todd-
as
expect of
He will rave, he
gurgle, he will exclaim—be¬
will
he
is
it
would
enthusiasm
come
be
not
incredible
impelled
him
stockholder in
a
companies
startling
to
new
process
the
theatre
box
the
hands
otherwise,
gas-lit nicolodeon hue!
sume
a
last
Mayr & Company
branch
office
—
a
lected
of
reels
advance, informal
the process, in se¬
from
"Oklahoma!"
Spectators at these intimate
views
And
have
these
become
previewers
Joseph
in 1954, there
$6,000,000
Magna
chase
warrants) to
production
money
homa."
This
now
so
Oklahoma
the
were
provide
does
for
years'
net
$25 million.
DALLAS,
ties
Tex.— First
Company
with
offices
business.
to
has
in
as
to
alter
native
cost
is
leaving
of
million
sales
has
and
only 12,500
preferred, and the ex¬
isting 2,200,000 shares of common,
new
quoted
Now
over
what
the counter at 14.
the
are
revenues
(apart from Todd-AO) flowing to
Magna?
Well, they include 60%
of
the
net
profits from "Okla¬
homa"
for 3
for
more
general
10 years (with
option
years) and 20% there¬
Rogers and Hammerstein
Pictures, Inc. gets the balance. In
addition, Magna has an under¬
standing with Messrs. Rogers and
Hammerstein
duction
of
II
other
We have
conduct
A.
for
picture pro¬
joint properties
Pacific," now
definitely
contracted
for,
and
"Carousel," etc. (excluding "The
and
I,"
contracted
to
Optical, and
"War
some
flight technicians
and
100 of its top¬
to work;
went
the
resulting process is ap¬
propriately enough, named Todd-
Michael
AO.
within
The
Todd
is
for
Michael
Todd, and the AO for American
Optical. Add to this background
Peace"
and
"Eighty
Days Around the World," sched¬
uled
for
production
by
The
Let's
to
Todd
Company,
formed
the past year.
move
American
on.
We've
Optical,
referred
described
had
expenses
Howell
is
1954.
This
seems
to be
figures would indicate good
a
agement
taking
advantage
good market.
larger premises
V.
...
are
located in
at
60 Wall Street
-
New York 5, N.Y.
Our
telephone number has been changed to
WHitehall 4-7380
'
Our
bigger offices and enlarged staff, and up-to-the-minute,
fast-working facilities are designed to give greater assistance to
Dealers and Institutions.in all Canadian securities.
Through
our
affiliate, Gairdner & Company Limited, Head
Canada, we are in a position to provide
Office, Toronto,
especially fast service in all Canadian securities. By
wire system, we are linked with
•
twelve offices in
•
all
•
principal cities
across
our
direct
Canada
major Canadian Stock Exchanges
the American Stock
Exchange, of which
we are an
Associate Member
•
a
research
department
analysts
staffed
with
qualified
economists and
•
world-wide correspondents
Gairdner £
60 Wall
Company Inc.
Street, New York 5
WHitehall 4-7380
a
paratively constant figure.
Not
and
running
1954
$6.2 million in 1947 to $7.7 million
Fox
panoramas; and with a sixtrack sound element.
American
run
in
securities
a
administrative
moved from 40 Wall Street and
now
and much
"South
—
con¬
formed
Praetorian
Announcing.
after.
of theirs
of
have
been
by
outstanding
of
in
the
cost of sales
drastically
complete. It is hoped that
profits from it will, in due
course,
retire
the
debentures,
shares
on
have been running approximately
principal of the firm.
there
scenery)
be
Securi¬
been
the
Hubert
oil derricks in
participated in by Todd-AO).
only is Magna in a position
to
glean
large
revenues
from
these, but from such others as
ups
record
which
The
but
at close
based
been reduced to $16 million. Other
picture
as
to
seem
fluctuations
experience.
sales
$17
"Okla¬
sensational
many
original
King
and
not
severe
in line all through
this trying, period. From 1947 the
Stephen E.
Building
new
dis¬
well
has also stayed
Balough.
the
the
create
system equally good
is
is¬
now
American
a
approximately
stock
desirable
very
as
a
under the direction of
pre¬
from
The book
$25 million from
1947 through 1954.
It has run as
high as $27 million and as low
Eye Street
enthralled.
were
ap¬
$13.
movement
few
stant
1624
at
last
been
approximately
opened
nas
The
has
Western Department Stores has
as¬
Joseph Mayr Branch
WASHINGTON, D. C.
and
market
office
or
The
subject to
problem; and it makes TV movies,
pay-as-you-go
$13.
through
California,
through Oregon and Washington.
It is held in comparatively strong
be the
may
and
tributed
be¬
of
one
ployees.
his
have outlined. This
we
to
answer
if
share
approximately 1,000 stockholders
approximately 1,000 em¬
First Sees. Co. in Dallas
of
per
and also
longer a remote
show spectator—he is in it! And
no
Quite candidly, there have been
number
cents
Western Department Stores has
George Spelvin?
cause
it.
a
80
been on this rate since 1948.
The current price of the stock on
the San Francisco Stock Exchange
the productions filmed under
showings
is
has
definitely superior
is
to
approximately
CinemaScope.
Well,
if
the
four years' range
blase, the urbane, the super so¬
phisticates of the cinema come proximately $9 to
value is currently
away from "Oklahoma" limp and
$15.56 per share.
ecstatic, what shall we
com¬
ferred and less than $4,000,000 in
debt.
The common sells at about
considered
AO process
wallop to the
of
and
years;
preceded by $614,000 in pre¬
mon,
a
a
better rating than any
picture produced in the past two
was
Theatre
Corp. debentures (with stock pur¬
all, the Todd-
AO process needs but
one
first
sued
are
this.
these, at least six
shortly be equipped for the
will
idend
homa!"
the
"Oklahoma!" and, after earlier fi¬
(shot mostly in Arizona
Process
leasing
throughout
Of
I Like Best
Ameri¬
can
Optical,
and
President
of
Todd-AO, stated, at a luncheon of
The
Security Analysts Society, previous years' earnings, such as:
that a MGM official gave "Okla¬ 1953, $1.65; 1952, $1.52. The div¬
Our New Address in New York
Magna Theatre Corp.
The
effects,
S.
enterprise
or
Security
Magna Theatre Corp. (formerly
The Michael Todd Co., Inc.) was
separate
cameras
U.
an
bridge, Vice-President of
The
success, it
Magna Theatre
Todd-AO process, and to produce
and distribute pictures under it.
are
required,
films, and, in display, three
track
sophisticates to
be thrilled only- by talking
gi¬
raffes, or tap. dancing octupuses!
Only last week Mr. H. S. Wood-
Todd-AO
that
odds the most lifelike is
Cinerama.
Yet to achieve its
three
the
tions, and 31/2% of foreign admis¬
of
we
any
what? What publicly
owns
companies
and
techniques
without
the
Who
held
VistaVision and
Todd-AO
is
a
The
advance
fects.
UATC is
controlling
playhouses
350
some
a
50%
you.
films
seen
fi¬
Co.;
and vivid
which
the
and
"Oklahoma!" is rolled out in
the Cadillac of broad
dimensional
process
of
some
Optical
cause
cinematics—the vibrant
put
Rivoli, Corporation
and waves'of
enthusiasm as it is
later shown at feature
playhouses
throughout the land. And all be¬
Todd-AO
lei's
nancial pieces together.
sions.
This premiere
prove
Now
three-
dimensional
has never before
this enterprise
say
lacked top echelon sponsorship. It
was loaded with it!
and
taking
CoDieign
You can't
inside
Inc.,
proprietor
of
the
"Rivoli," where "Oklahoma!" will
companies.
prophetic preview. On
a
the
cuit,
owning,
This is
has
theater presentation?
It looks
like United Artists Theatre Cir¬
horizons of profits it may create for shareholders in
new
who
on
appraisal of the fabulous Todd-AO cinematic
the tingling audience participation it generates; and
certain
the
'*
t
screen
process;
Sept.
'
'■
»
Continued from page 2
would expect such
United Artists Theatre
*
5
*
com¬
These
man¬
of
a
;\
6
The Commercial and Financial Chronicle
(2638)
does
The Economic Outlook
tion
third
sustaining but not stimuHating business, that we are overproducing both automobiles
and houses, that demolitions are essential to housing demand,
that personal debt is at an all-time high and that saving is on
(he decline. Concedes that all these warning signals apply
i
1
with greater
force to the nation
far
the
as
easily visible
the eco¬
concerned,
are
ly and
warrants
tended
discussion
building
ing
(
I
figures
/Arding
;H
ing and the
re-
rowing,
Gross
Product,
been
fac¬
volume.
\;*«ich
reasonable
in
all
Townsend
Suppose
uuook
that
granted
business
for
it
take
we
the
filled
are
immediate
is
excellent
nd start looking for the possibilj y that some small dark cloud on
t »e horizon may blow into a storm,
i
major
this
next
the
consequence
market
call
take
ways
running
might
be
ing wind
rying
it
no
either
We had such
prevail
a
•
summer
steadily, car¬
market up with
on
stock
quite
by
recently.
There
is
families
new
not the
are
New households
averaged about
600,000 per annum in the seven
yeara. between 1940 and 1947 and
married couples comprised about
95% of the total. During the yearsfrom 1947 to 1950 new households
averaged
about
represented
about
1950
and
have
averaged
1954
but
annum
1.5
80%.
per
married
Between
households
new
about
resented about 60%
These
Industry
ac¬
an
prevailing wind at the present
830,000
couples
per
rep¬
of the total.
12
other
than-
singly or in groups — young
businessmen waiting for good sal¬
aries to get better—also
singly or
prediction but because dan- time and the stccK market is being
clearly anticipated are always blown about by gusts, it looks as
I out three-quarters averted, just though the next prevailing, wind
id
; x is
f
problems properly analyzed
i,:
M i. ays
i
r
ere
v
about
are
three-quarters
an-
d.
here
an
im mi nen t
1
i
is
j..g
is
business, is sustaining
longer stimulating busiTherefore, it is not performfunction and is rela
its proper
but
no
unprofitable. It takes
businessman quite a
ti
average
sound
•
e
iit-
t
management.
Another element of darteer
,
1,255,200 in the week ended May 21, the United States J
Department of labor reports.
All but five states reported decreases in their jobless rolls
42,000 to
•
the
over
week, the
2,078.700.
In
said. > A
agency
ceeds
from
the
national
overdoing
everything
take.
comparison
By
of
under¬
we
wnh
any
previous year, we are maiding too
many automobiles and too many
houses.
tion
mobiles, the manufacturers have
been stocking up in anticipation
general.
'Abstract
1
t
the
'
of
He
talk
a
Pacific
by
knows
Mr.
Northwest
Idaho,
June
4,
is
Townsend
of
a
strike.
the
If
case
it
Conference
Savings and Lean Associations
V alley,
it
In
at
Sun
have
of
die
occurs,
he
auto¬
ai
plenty of cars, to $eil but the
workmen will get no wages, if u
iySS.
subside
to
truck
the
%//';
following week, ended May 28,
dispute
was
small
In
build
that
than
units
next three
time
may
new
is tne
years,
family
more
new
in
annum
or tour
Hie
million
a
per
Income
November.
of
a
formation,
staple
and
de¬
of housing de¬
begin to increase. The
problem
rot
is
likely, to
acute in trie case
oi
the
become
new
nomo.
The individual's desire to
improve
his own standard of
living should
take
For
Banks, Brokers and Dealers
T
Unilever N.V
declared
a
year-end dividend for 1954 of 8%%,
oequal to about $23.00
on
or
after June
per
of
care
Fl. 1000 share. Payable
9, 1955, against coupon No. 43.
FOREIGN SECURITIES
home
new
could
'°nH
Original Form
American Depositary Receipts.
Quoted
New York Hanseatic
receipts of
$295,600,000,000.
Established 1920
•
Telephone: WOrth 4-2300
Private Wires
first
the
For
four
healthy wage boost comparable to the best in its history,
Iron Age," national metalworking weekly, this week.
strikes in automotive plans prior to the settlement
enough to affect the steel market.
The curtailments
a
not
were
postponed but did not lessen automotive steel requirements.
In
the
fact,
are
Their
is
moving,
kinds
we
of
trouble
too
take
long to
-m
duction.
That
suggests
which
must
to
be
other
one
borne
in
housing. The
ownership
of
times—directly
at
a
in
profit
the
gram
to
That
automo¬
ma¬
product,
number
everyone
log-jam
process
As
result, continues this trade paper, 4t beeins to look like >
quarter steel production has a better than even chance
of hitting an all-time high.
The 1953 record of 111,690,003 tons
a
little
easily
due
tered
Third quarter production will ease a
vacation and maintenance problems.
softly but carried a big stick when it en¬
this week.
The generous settlement in the
toppled.
be
hot
to
Steel
weather,
labor talked
negotiations
automotive
union
industry
it*
in
best
trade authority.
Some
industry prosperity pufs the
position in years, comments this
ton of steel
on
bargaining
industry
leaders
privately
are
revising their earlier
around to cents
estimates that the steel wage settlement would be
hour.
an
are
The betting now is a few cents higher.
limited this year to wage rates.
Meanwhile, the
Incoming orders
pressure
for more
Steel negotiations
ances
ebbed
to the
lowest point
and
vious
truck
week's
turnout
construct
26,243
estimates the week's combined
less than the pre-
159.017 units, or 20%
output at
.
r
;
of 1955.
"Ward's Automotive Reports"
car
v
continues to mount.
steel
still running in excess of capacity. Consumers
generally are thinking in terms of the fourth quarter. The third
quarter is spoken for in most products and some of this tonnage
will spill over into the final period, concludes "The Iron Age."
In the automotive industry last week United States car and
truck building, crippled by walkouts and Memorial Day observare
;
198,182 units, itself a seven-week low.
Biggest slump was in car building, pegged at 132,774 units,
which is 21% below volume in the prior week. Truck oroducers
30.727
15%
units,
'
units.
five nlants
the
of
anticipated
the
23-28
yield
by wildcat strikes was Ford Motor Co. which had
mounted.
output
week's yield
May
nearly
along
stopoages dumped the company's
10.000 units fewer than the previous
as
tension
,
„
The
of 47,010 units.
Elsewhere, the West Coast truckers' strike downed Chrysler
Corp.'s Los Angeles plant and Dodge Detroit car-programming
called for
;
•
hampered bv unauthorized walkouts
front
labor
less than
"
;
only three-day operations.
Across
the
units
when
progression
-
,
11,657
an¬
*
share of the
the fourth
pro¬
be constructed/ Any
which develops
in the
either
a
border, Canadian car-truck building, estimated at
jumped 18% over the previous week's count of
may
of
tough competitive
units,
the first
;
available steel.
involved
material out of which
car
a
13.804
of regression from
raw
companies realize they are in
another and with other industries for
one
materials
owner to the
junkyard, changing
hands, in all probability, many
Umes, always at a lower price,
until it gets back to the basis of
the
completed with scarcely a halt in pro-
automobile
of
same
equally inexorable
an
in
indirectly—
contribution
skill.i
thing
raw
any
or
auto
with
are
are
Hardest hit
mind
bile progresses from the
terials
to
the
finished
on
The
inventories
maintaining pressure on steel companies to have
hand when they need it, "The Iron Age" reports.
They
the steel
Another Housing Facet
I
models.
1956
over their
low and the
seriously worried
producers
car
for
model change-over will be
al¬
NEW YORK 5, N. Y.
Principal Cities
The
can
cause
Victoria
celebrations
Day
cropped
;
outout.
According to the statistical agency, United States year-to-date
vehicle
construction
4.252,554 unit5;,
when
a
by
week's
end
will
reach
an
ectimated
;
strong 40% ahead of the comparable 1954 period
production had just capped the 3,000,000 unit point.
Cars
alone, pegged
at
3,709.741
units, will
be
a
strong 46%
ahead of the year-ago stage and truck erecting, figured at
units, is
up
Steel
or
With
trouble.'
thing is true of hous¬
ing, although not so obviously and
one
same
of
the
12%.
542.813
Until five weeks ago, truck construe ion lagged.
Output Set at
the
rest
the
of
continuance
Of
a
Higher Rate This Week
steel
output at
June, the first half of the
year
its
will
present
rate for
aooro^ch
record
proportions, states "Steel." the metalworking weekly, the current
week.
The record for
a
first ba'f
was
57.9 million net tons of steel
interesting thoughts
presented by Dr. Gordon McKinley, of the Prudential Insurance
for ingots and castings in 1953.
Company, in a talk he gave to the
Savings Bankers not long
by much, says this trr>de iournal. .Output in the first four months
was 37,100,000 tons, the American Iron & Steel Institute reported.
Mutual
L
needs
steel
"
Teletype: NY 1-40-1-2
to
the
yearly
a
above the previous
$1,000,000,000
Scattered
of
regression
Associate Member American Stock
Exchange
120 BROADWAY
unless
mounted to
individuals
-
That's
states "The
will
other
Corporation
all
wouldn't
begins
Sold
but
start.
or
Bought
buyer
have
it
changing
or
item
ready occupied, out of which the
respect
in
that
something is done to insure
ready disposal of the homes
high in Anril as fac¬
new
It's $11,200,000,000 above the pace in April,
months, personal income ran at $293,030,000,000 annually* or 3%, above the year earlier level.
The auto "settlement removes one big hazard to the steel '
boom.
But it also means that steel labor negotiations will be a "
lot tougher than expected. The United Steel Workers are on the
1954.
pendable element
mand, couid
further
claims, the De¬
*
*
record, set in March.
the
by which
J
the upswing which got under way last
payrolls continued
con¬
might be able to
we
better
which
this
fact, it is reasonable to
;■.,;
claims for jobless
new
;
-
income reached
Personal
tory
ccuM
con¬
substantially to the
new
housing at the
for
housing
dimensions
situation which
a
time land
assume
phe¬
;/-j/ /
.
new
for the rise in
one reason
partment explained.
is
course
earlier, .the idle numbered
up by 5,300 to 198,300, the agency stated. A year earlier,
claims, which reflect layoffs, came to 279,900. The West Coast
new
very
demand
tinue.
its
run
and develop. It .is
grow
present
transitory
a
whether it is
tributing
habit
is
year
•
edged
pay
race
will
nro-
there
and
apparently, to determine
way,
or
Tendency to Overbuild
f o tiine to realize that this situa¬
is
recent
and
no
t vniy
t
e n
is
might be made in the interests of
which is always undertaken
»
household
it
simulate
1 ut
experience with this tvpe of
net
which will
borrowing by busi-
ess;
develop m
Our
is
nomenon
The first of these
that
it
whether
i
fact
downdrait.
of
group
something t o :\j e watched and
something against which provision
such
(Lamination.
..a
a
oc¬
of housing by any other
unrelated
individuals.
cupancy
quite apparent, on
t' 'M which are,
)
be
collective
situa-
several
are
would
the
i
percent.
—
groups—and
(
Decreased/; claims > for unemployment insurance payments h
again reflected the nation's healthy economic activity. The total
of idle workers drawing, unemployment compensation fell
by t
scent of
households
married couples represent
widows,
divorced couples, bachelor women
in
Business.Failures
day of last week, but notwithstanding this decline, total output
registered a gain over the like week of last year of approximately
.
t
.
/.
t
,,
-
.rate
million
which married couple?
annum, of
Auto Production
The trend of industrial production for the country as a whole V
continued to edge slightly lower in the period ended on Wednes- ;
same
thing. The growth «f this particu¬
lar phenomenon is fairly recent.
tacking
or
develop in the
the
until
them
It kept
1953.
of
the
advantage
before
into them.
necessarily with the idea that
t
of
be
prevailing
winds, of which the sailor can al¬
discussion will involve
j'
that if
assume
stock
might
we
days.
v.;
c
the
would
downward. These basic movements
with
newspapers
(
to
it
continues,
movement
in¬
the
fd<?se
interest¬
and,
Therefore,
condition
other sta-
(litics
the
market than it does with business
W.
II i
for
steadily
been
new
not
months
to
household formations do
realize that new households
cuss
and
ingly enough, it correlates a little
accurately with the stock
c o
me, personal
income, dis¬
and
declining
according
annum,
seriously questioned as
involving samples which are too
small, but most of those who dis¬
exception of
securities, has
the
more
ages, i.ours,
national in-
are'
the best estimates. These estimates
nave
total of all bor¬
sum
with
three
oast
\
posable
of action, J
spend¬
course
'oans made to carry
tory output,
c.oi loadings,
c
mployment,
come
changes his
This, ratio between total
t i o n a 1
a
part of the rule itself and then
the
recite
)
Ultimately, of course, it
brought home to him that he is
he
were
1.4 mil¬
Households
annum.
600,000
a
oovi-
the
if
are
present"
time at the rate of about
the rule.
(us
We
the
at
with
being formed at the rate of about
is
Index
Price
ex¬
that
happening to him but he considers
nomic outlook has never been any
Trade
Commodity Price Index
is
two
'more
than
automobiles.
per
CarloadingsRetail
Food
respect ^toT
some
homes
per
1
this group~vital-
concerns
respect Ato
£V
State of Trade
and
with
' Steel Production
Electric" Output
^
.
no
himself the exception rather than
I righter and
I would be belabor¬
the
of
be
to
seems
One
situation
housing
lion
As
The
dis¬
and, at present rates of
choice.
The
Northwest and the Midwest.
Statistics
serious
a
bound to happen.
whole than to the Pacific
as a
involve
production, there
Townsend points out that loans are
I
could
turbance
Granting that current business statistics are all optimistic, Mr.
''V
cars than they
easily dispose of. Either situa¬
can
Co., Inc.
President, Townsend-Skinner &
occur,
the workmen's
will continue but the deal-,
will have more
ers
Thursday, June 9, 1955
...
not
wages
W. W. TOWN SEND *
By
.
Continued
on
page
20
Production in the
first half cf .1955 should not miss that mark
Continued
on
page
45
.
Volume 181
Number 5436
.
.
The Commercial and Financial Chronicle
.
(2639)
But
spect.
Is the
By CLAUDE L. BENNER*
President, Continental American
'
Stating
we are
relative
to
executive
pany
current
built, the
Life Insurance Co.,
H
lending institutions
urges
present rate of home
we
communities, while
est rates
market which
The
can-•
we
At
we
time like the present when
a
are
many
are
building
family
new
twice
over
housing units
new
the
formations,
building
reached
and
nor
of
been
*
when
the
mort
in
house
e
these
on
financing
under¬
by the government.
FHA
insured mortgages have long been
be¬
thing
Government
Housing activity during the past
dependent
his
is
FHA
made
and
with
term
they
now
down
no
payment
long as 30
ownership
under
a
can
as
years.
these
is
and
less
important
in
factor
this
re¬
encev The demand for houses apparently is a rather inelastic one.
People must have shelter and
whenever adequate housing is in¬
sufficient
to
meet
the
demand,;
(3) decline in building
far
trouble
as
about from
might
decline in costs
a
rents
of construction, I think there is
little about which to worry. The
hourly
costs
of
labor
steadily
that
upward and in
be
can
done
cheaper
continue
through
the
when
houses
the
of
way
costs
start
building of
of
to large
erected
tinues
and
to
be
carried
increased
passed
on
to
cept at
This
material
con¬
need
houses
with
hand
on
all happen without any
change in the costs ci
can
construction.
As I have
building
in
already stated
we aro
of
it
them
is
by
twice
over
the
numbee
housing units as there are rev/
family formations. This is caus¬
ing a good deal of concern on the
not
em¬
ploying more efficient methods of
production.
We
whenever
themselves
stop and quickly turn downward.
and
be
because
absorb
to
to
unable to sell ex¬
loss, the upward move¬
prices will immediately
a
in
consumer
the
apartments
Likewise
find
finished
to
wages
prices
possible
tend
empty
rentals.
ment
by crafts
on
or
and
over
again, nevertheless by
large the process of building
sky¬
which they
some
over
will
undermining the going scale
some
provements in large-scale develop¬
ments where
the same
type of
house has been
prices
a
community. It only
relatively few vacant
a
developers
introduction
?L^b^"SaIing_ machin:er7; ,W1?ile
notable im
there have been
in
houses
The
sale
The exact opposite is true
there is a small surplus of
takes
houses is not susceptible
savings
and
rocket.
spite of all
in
materials,
rise.
to
higher
Here it is
part
of
those
who
are
financing
this
building. Such questions nat¬
urally arise as "Is the country be¬
ing over-built?" "Can the present
not
relatively
low* interest
Frankly, I do not know
rates.
what
fear, therefore,
that
the
security back
of • our
mortgage loans will be jeopard¬ volume of construction long con¬
ized through decreased costs of tinue without,
causing trouble?"
would
how¬
bunding.
nanced with 100% mortgages writ¬
ten for such long terms and at
do
I
it.
that
feel certain,
such
financing,
if it
substantial
really
proportions and was long con¬
tinued, would ultimately bring
an
ep
our
long in t
provided
by
agencies were withdrawn.
written
gagor's
equity
the
VA
liberal
more
interesting to contem¬
plate what could possibly slow up
a
building boom if it can be fi¬
:
decade has grown more and more
the
average
always
ever,
Underwritten by
.
on
$9,000
-equivalent to rent
freqiient.lv costs even less.
Administra¬
it continue
only 5%
30-year payout.
a
were
and for
rap¬
over
decade, and
a
be
boom would not have
its present
proportions,
would
more
gage .terms
in¬
creasing
idly for
Housing
gen¬
future if the very generous mort¬
mortgage debt
has
many
thi* respect exactly what
Federal
calls for
now
permits
terms
tion and without the VA loan
as
there
as
when the total
amount
It
than
doing today."
are
were
down payment on the first
terms
n
always
made even
were
of loan and 25% on t..e remainder.
family income, adding that "we did
to
Currently
by the 1954 Housing Act.
FHA
the result of building too
1925 1929.
years,
They
erous.
-
during the four
fi¬
using
Home
was
come
was
VA loan.
mortgages
Says demoralized real estate
began about 1030
houses in relation
many
disccunt in
1954,
In
built
ing;
come, and
costs.
So
out of every
one
have
causes
responsible: (1) over-build(2) failure of personal in¬
trend
generous
gradual increase has taken place in inter¬
a
conventional loans.
on
a
a
one
been
' was
(
not over¬
are
building is excessive and
currently selling at
are
VA loan.
a
houses
new
about
houses
seven
financed with
VA
long be maintained without causing trouble, undermining
real estate values and
increasing foreclosures. Cites increas¬
ing selectivity by private lenders h mortgage making, and
that VA loans
1954
Until
every
prominent in
however, three main
The terms of both the FHA and
•
not
notes
field.
of
.
last
the ratio is running about one out
of three.
carefully the
survey
Says while
this
out
nanced with
'
until
guaranteed
so
four
Wilmington, Del.
mortgage loan situation.
VA
however, about
building over twice the number of housing units
family formation, prominent life insurance com¬
new
not
was
the
mortgage became
Present Mortgage Situation?
~
it
that
year
7
assumed
ever
disaster
in
the
real
estate
mortgage loan fields.
% Experience
shows
and
"What will
Recalls
But
those
member
which
Situation
of
the
real
existed
full well that
.
that
while
can
become
us
in
a
prices
in
1930
who
can
re¬
situation
estate
the
30's
if
happen to real eshato
we
houses?"
get
"Will
security
it
back
of
surplus
a
of
jeopardize
our
mortgage
loans?"
realize
Overbuilding in the 20*3
real estate market
completely disorgan¬
It is generally assumed that tha
demoralized
real
estate
market
there will always be personal cir¬
ized
cumstances
less of their costs of reproduction
which
whenever
caused by the stock market crash,
vidual
there
responsible
foreclosures,
has
been
a
for
indi¬
whenever
large
number
and
houses
there
over-supply
of
sell
is
for
a
50%
or
substantial
houses
in
began
about
Continued
exist-
on
1930
v/aj
page
22
and .less, it be¬
hooves -those
of us who
are
trustees
for
other
Claude L. Benner
Interest exempt, in the opinion of Bond Counsel, from all
present Federal Income Taxes.
people's
to survey carefully
mortgage loan situation if we
money
tinue to invest such
the,
NEW ISSUE
June 8, 1955
con¬
large portion
of our funds in mortgage loans as
we have been doing
in the recent
a
$74,000,000
past.
We
a
are
the
real
in the tenth year of
now
building
has
boom.
upward
Never
Florida State
before
in
movement
a
Turnpike Authority
estate
cycle lasted so long.
Throughout the cycle construction,
costs have risen year
by
until
year
today
at
were
what they
in the mid-thirties and about
70%
over
they stand
high, about 300%
what
they
were
so
re¬
cently
as
1947. Yet these rising
costs, while they have no doubt
changed the size of the house and
cheapened
the material out of
which it is built, have apparently
not
retarded
houses,
ment
to
we
build
than
number
or
of
mo¬
any
pl-mnmg
new
housing urrts
previous year in our
history:
Many factors
no
doubt have been
responsive for this building boom.
But I think that it is
generally
admitted
in
that
important factor
an
keeping it going
been
the
has
long
so
with
ease
only have ample funds been
to
finance
this
were
abundant
so
cheap that builders
The Florida State
Turnpike Authority was heretofore duly created
Chapter 28128, Laws of Florjda, Acts of 1953, to construct
the specific Turnpike
Project known as Project No. 1, described in the
Official Statement. In the opinion of counsel, these bonds are to be issued
for the purpose of paying the cost of Project No. 1, and are
being issued
under and secured by a Trust Agreement, dated as of
April 1, 1955, be¬
tween the
Authority and The First National Bank of Miami, Miami,
pursuant to
Florida, as Trustee, and the Miami Beach First National Bank, Miami
Beach, Florida, as Co-Trustee, and are to be payable solely from reve¬
nues.
The Trust
Agreement provides for the issuance of additional bonds
result
was
materials
wages
and
the
in
creation
than
particularly true
when
was
the
in
so-called
active
that there
therein.
Under the Trust
Agreement, the Authority covenants that it will
promptly .pay the principal and interest on bonds and any premium re¬
quired for their retirement solely from tolls and other revenues derived
from the ownership and operation of the
Turnpike System, which tolls
and other revenues are thereby
pledged to the payment thereof in the
manner and to the extent therein
particularly specified. Neither the State
of Florida nor the Authority will be
obligated to pay any of these bonds
or the interest thereon
except from the revenues of the Turnpike System,
and neither the faith and credit nor the taxing
power of the State of
Florida or of any political subdivision thereof will be
pledged to ths
payment of the principal or of the interest on these bonds.
(plus accrued interest)
These bonds
offeredfor delivery 'when, as and if issued and received by us and subject to the approval of legality by Caldwell, Marshall,
arid Mitchell, New York City, Bond Counsel to the Authority. 'The offering
of the bonds.is made only by means of the
Official Statement of the Authority, copies, of which may be obtained in any state in which this announcement is
circulated from only such of the undersigned as are
registered dealers in such State.
of
in
are
Trimble
/■
cf
th^e
called for in the union scale.
was
April 1, 1995
Price 100%
buil ting
payment
higher
even
mature
e^cir"-
many
the
to
so
build them.
black market
referred
b"t
aged to undertake the building cf
more houses +han there wern ma¬
The
as
such
terials °i>d labor out of which to
a
To
Principal and semi-annual interest (October 1 and April 1) payable at the Chemical Corn
Exchange Bank, New York; N. Y., or at The Continental Illinois National Bank & Trust
Company of Chicago, Chicago, III., or at Capital City National Bank, Tallahassee, Florida,
at the option of the holder.
Coupon bonds in $1,000 denomination, registerable as to prin¬
cipal alone or as to both principal and interest. Fully registered bonds are reconvcrtiblo
into coupon bonds as provided in the Trust
Agreement.
pres¬
ant
were
redeemable, on thirty days' notice, in whole on any date not earlier than
April I, 1962, from any moneys made available; or in part (by lot) on any interest pay-,
ment date nor earlier than
April 1, 1960, by operation of the Bond Redemption Fund.
The bonds are redeemable
initially at 103|^% of principal amount and at decreasing
prices thereafter, plus accrued interest," all as described in the Official Statement
and Trust Agreement.
■ -•/
are
Not
building,
there have been times w^en
ftinds
The bonds
'
under the conditions and limitations
whmh
gage credit couM be obtmred
ent
Turnpike Revenue Bonds, Series of 1955
To be dated April 1, 1955
new
the
at
building
are
right
more
in
entire
the
because
•314%
all-time
an
over
TVs
UK*7-!!
The First Boston
Corporation
Drexel & Co.
Halsey, Stuart & Co. Inc.
ooeration.
I
is little doubt
think
Harriman Ripley & Co.
Smith, Barney & Co.
Incorporated
"Fanny Mav"
'
*
Eastman, Dillon & Co.
Equitable Securities Corporation
Glore, Forgan & Co.
Goldman, Sachs & Co.
Kidder, Peabody & Co,
t'-at the
over-abundance of mortgage fun 's
was at least
Merrill Lynch, Pierce,* Fenner & Beane
Phelps, Fenn & Co.
Shields &
Company
White, Weld & Co,
partially responsible
for the rapid increase in construc¬
tion costs which has taken
p'ace
since
t
much I
'An
e
close
am
of
the
war.
certain is true,
address by
This
without
Mr. Benner before the
Savings Bank Association
setts, Boston, Mass., June
of
1,
Bear, Stearns & Co.
F. S.
Moseley & Co.
Blair & Co.
Alex. Brown & Sons
Incorporated
Hemphill, Noyes & Co.
Salomon Bros. & Hutzler
Hornblower & Weeks
Stone & Webster Securities
Company
Incorporated
Paine, Webber, Jackson & Curtis
Corporation
R. S. Dickson &
Dean Witter & Co.
R. W.
Prcssprich & Co,
Estabrook & Co,
Massachu¬
1955.
i-
8
The Commercial and Financial
(2640)
Mid
Uranium
Continent
—
Report
—
Investing
General
Chronicle
Cor¬
poration, 80 Wall Street, New York 5, N. Y.
Dealer-Broker Investment
Recommendations & Literature
mentioned will he pleased
interested parties the following literature:
send
to
Company—Analysis-—Equitable
Insurance
G.
C.
Company—Report—Thomson & McKinnon,
Murphy
Wall Street,
June 9,
Atomic Map, in four
colors (revised)—Describing and locating
different companies—Atomic Develop¬
Securities Co., 1033 Thirtieth Street, N. W., Washing¬
Mason
atomic activity of 97
ton
Stocks—Is It
situation—"The
uranium
current
Milwaukee 2,
Street,
Western
and
Trader
In¬
&
Co.,
225
East
In the same issue is an
Wis.
Municipal Bond Club of New
York 22nd Annual Outing at
the Westchester Country Club
and Beach Club,
Uranium—Bulletin—Julius
Olympic
Philco
Co., 21 West 44th Street, New York
Maier
Ex¬
15
Inc.,
Co.,
(Philadelphia, Pa.)
Investment Traders Association
June
Corporation—Brief analysis—Bruns,
at
36, N. Y.
are
Street, New York 5, N. Y. Also in the same bulletin
data on Mohawk Carpet Mills, Rexall Drug, and Archer-
Club.
Daniels-Midland.
Phillips
date thro"«?h
States—Chart brought up to
1954—Ave Securities
Corporation, 400 Benedict
Avenue, Tarrytown, N. Y.
Petroleum
Office
Fire & Casualty Insurance
value comparison
New York
Fire
and
lected
Stocks
Earnings and liquidating
Laird, Bissell & Meeds, 120 Broadway,
—
—
St.
se¬
companies—First Boston Corporation, 100 Broadway,
New York 5, N. Y.
Cement
150
M
Japanese
Automobile
Industry—Analysis
issue
current
in
of
"Weekly Stock Bulletin"—The Nikko Securities Co., Ltd.,
6, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
Japanese Petrochemical Industry—Discussion
of
"Monthly Stock Digest" — Nomura
Broadway, New York 6, N. Y.
61
Securities
Jones Averages and the 35 over-the-counter industrial stock®
both
yield
period
National
market
performance
Quotation
Bureau,
over
Inc.,
13-year
a
46
Front
as
Street,
Co.,
115
Co.—New
Francisco
Gas
views—Lemer
&
Co.,
Warrants
—
Calif.
Hentz
&
Also available is
a
Co.,
bul¬
and
&
West
Indies
of
Dreyfus
and
Co.,
50
Sugar.
Co.—Memorandum—Shearson, Hammill & Co.,
ing at Rock Springs Club, West
Orange, N. J.
June
Notes
NSTA
Seaway
—
RenoH
*
J.
—
:js
Industries—M^mora^diim
R.
Williston
&
*
.
Hollow Golf Club.
Co-, 115
Sud
Americana
Fourth
Chemical
Company,
American
231
Dye
South
Research
&
St.
Corp.
La
'
Petersburgh,
—
Salle
Street,
—
...
»
Co.,
1016
&
Hough,
Fla.
—
The
4,
Literature
—
Illinois
111.
Troster,
Baum
&
Boston
The Security Traders Association of Detroit and
hold
its 20th
annual
Summer Outing at Plum
Michigan will
Hollow Golf Club
outing at the Weston Golf
Company,
Mine—Reoort—L. D. Friedman & Co., Inc., 52
Broadway, New York 4, N. Y.
Analysts 3rd
the
Chairman for the gala day is Robert Moons of
is
Security Dealers of Nashville
annual outing Hillwood Coun¬
INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA
try Club and Belle Meade Coun¬
Company—Analysis—Ira Haupt & Co., Ill
bulletin
a
on
Hayes
(Nashville,
Tenn.)
Manley, Bennett & Co.
try Club.
July 14-15 1955 (Toledo, Ohio)
Bond
Club
of Toledo
annual
Compo Shoe Machinery Corporation—Bulletin—De Witt Conklin Organization, 100
Broadway, New York 5, N. Y. Also
available
Golf Club.
Scarsdale
June 30-JuIy 1, 1955
Broadway, New York 6, N. Y.
Dow
Security
annual outing at
Society cf
York
New
members along with their local and out-of-town
will be entertained for the afternoon and evening with
golf, dinner, refreshments and the awarding of many prizes.
STADAM S
Club.
(New York City)
June 24, 1955
Tuesday, June 21, 1955.
The Program
Avenue, Kansas City 5, Mo.
Gas
Club.
Mass.)
Investment Club annual
June 24, 1955'(Boston,
—<
guests,
Bonanza Oil A
Chattanooga
MICHIGAN
on
Chicago
Company—Analysis—George K.
Baltimore
Brookhaven Country
i-
488
:
Memorandum
Development
■
&
Inc.—Memorandum—Beil
Street,
&
Roberts
—
Singer & Co., 74 Trinity Place, New York 6, N. Y.
Bare^o Oil
(Atlanta. Ga.)
Georgia Security Dealers Asso¬
ciation
summer
outing at the
SECURITY TRADERS ASSOCIATION OF DETROIT &
Cad",
Madison Avenue, New York
22, N. Y.
33
(Detroit, Mich.)
1955
21,
Security Traders Association of
Detroit and Michigan 20th an¬
nual summer outing at Plum
June 24, 1955
Lawrence
Inc.,
Club
Bond
Broadway, New York 6, N. Y.
Allied
1955 (New Jersey)
of New Jersey out¬
June 17,
Street, New York 5, N. Y.
Co., 120 Broadway, New York 5, N. Y.
Aerovias
Scarborough-on-Hudson,
Club,
N. Y.
Co., 63 Wall Street, New York 5, N. Y.
Railroad
ACF
(New York City)
ing at Sleepy Hollow Country
Lewis
Portfolios—Study of 10 sample portfolios—Harris, Upham &
St.
sup-
Municipal Bond Women's Club
of New York Fifth Annual Out¬
—
York.
anniversary
at the Union League.
June 17, 1955
New
Common
Stocks—Leverage positions (bulletin No.
193)—Smith, Barney & Co., 14 Wall Street, New York 5,
(Philadelphia, Pa)
Women's Club of
Philadelphia
per
Richelieu, Mur¬
Manoir
Bay, Quebec.
June 16 1955
York 4, N. Y..
New
the
ray
.
—
Canada 39th annual meeting
at
Investment
Air Lines, Inc.—Review—$2 per copy—John H.
Vick Chemical
to
Dealers Association
Investment
Y.
Analysis
(Canada)
June 15-18, 1955
Broadway, New York 4, N. Y. Also available is a bulletin on
three sugar stocks: Central Aguirre, Great Western Sugar,
United
at the Riviera
Country Club, Pacific Falisades,
10 Post
Service, Inc.—Memorandum—Kidder, Peabody
Continental
Tri
Day
.
Railway—Review—H.
New York 5, N.
Field
nual
Co., 17 Wall Street, New York 5, N. Y.
Broadway,
Club of Los Angeles An¬
Bond
Company—Analysis—Amott, Baker & Co., Inc.,
Broadway, New York 38, N. Y.
14 Wall
used in the National Quotation Bureau Averages,
&
Taylor Instrument Companies—Analysis—Reynolds & Co., 120
Co., Ltd.,
;
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-
and
&
issue
in current
Williston
R.
Street, New York 4, N. Y.
Atlantic Refining Co.
on
Suburban
Co., Ltd., Ill Broadway, New York 7, N. Y.
J.
St. Regis Paper
Investment Opportunities in Japan—Circular—Yamaichl Secu¬
rities
—
Square, Boston 9, Mass.
Louis-San
letin
47
on
Bulletin
60 Beaver
5, N. Y.
Casualty Insurance Company Stocks—Data
—
Broadway, New York 6, N. Y.
Riverside
(Los Angeles, Calif.)
June 10, 1955
New York.
Changes in the United
1955
10,
Philadelphia summer outing
the
Whitemarsh
Country
of
& Co.,
Nordeman
52 Wall
Conner—Analysis—Bache & Co., 36 Wall Street, New York 5,
Economic
Rye, N. Y.
Broadway, New York 6, N. Y.
change Place, Jersey City 2, N. J.
Letter—Fortnightly review of the Canadian Securi¬
ties Market—Newling &
Yacht
Minn.
(New York City)
June 10, 1955
Co., 39
Railroad—Bulletin—Jacques Coe &
Pacific
Northern
vestor," Beason Building, Salt Lake City, Utah.
Canadian
Digest"—Loewi
annual
Club
Bond
City
picnic
at White Bear
Club, White Bear Lake,
perior District Power Company.
Uranium
Over?—Comparative analysis
mining booms i in the past century and how they parallel
of
Twin
current issue of
analysis of Pittsburgh Plate Glass Company. Also available
are reports on Lone Star Steel, Uarco Incorporated, Lake Su¬
7, D. C.
in
Financial
(Minneapolis-
1955
St. Paul)
Machinery Company—Analysis—H. E. Herr-
and
Field
11
Cohen, 52 Wall Street, New York 5, N. Y.
&
man
Investment
In
New York 5, N. Y.
Rubber
"Business
Boom
EVENTS
this Italian mining and chemical com¬
pany—Bear, Stearns & Co., 1 Wall Street, New York 5, N. Y.
on
Nekoosa Edwards Paper Company—Analysis in
ment
COMING
Securities
Corporation, 322 Union Street, Nashville 3, Tenn.
Montecatini—Report
National
understood that the firms
is
It
Missouri
Thursday, June 9, 1955
.. -
the
at
outing
Industries, Inc.
Toledo
Country
Club.
Chemical—Report—Cohu & Co., 1 Wall Street, New York
5, N. Y.
Gairdner & Compiny
in
New N. Y. Location: i :
Elcctrolux Corp.—Memorandum—First New
Hampshire Corp.,
5
South
State
Street, Concord, N. H.
Express
Dairy
Houston
Natural
Co.
Ltd.—Analysis—Standard Investing
poration, 40 Exchange Place, New York 5, N. Y.
6
Gas
Cor¬
Imperial
621
Chemical
Industries—Analysis—Hill Richards
South Soring Street, Los
Angeles
Co.,
&
&
Casualty Insurance Co.—Memorandum—R. S. Dickson
Co., Wilder Building, Charlotte 1, N. C.
Hardy
Jack
fices
Christian
to
Philadelphia will hold
its annual summer outing at the Whitemarsh Valley Country
Club,
Whitemarsh, Pa. Rubin Hardy, First Boston Corporation is Chair¬
man of the field day committee.
Jack Christian, Janney & Co., is
removal
and
new
at 60 Wall
"The Investment Traders Association of
—
the
nounce
Company Inc. an-'
of their of-'
&
•
Rubin
&
14, Calif.
International Telephone & Telegraph Corp. — Memorandum
Talma^e & Co., Ill
Broadway, New York 6, N. Y.
Life
Gairdner
Corp.—Memorandum—Rowles, Winston
Co., City National Bank Building, Houston
2, Texas.
larger quarters
Street, New York
New telephone number
vhall 4-7380.
Chairman of the Stock Exchange.
in
City.;
is WHitespecializes
securities
Canadian
affiliated
pany
DEPENDABLE MARKETS
The firm
and
with Gairdner &
is
Com¬
Limited.
Bonanza Oil ft Mine
Producing Quicksilver Mine
Trading Markets Maintained
Report
on
request
L.D. FRIEDMAN & CO. Inc.
DEMPSEY-TEGELER & CO,
52 Broadway,
New York City 4, N, Y.
Telephone DIgby 4-0860
Volume 131
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2641)
for the year.
What's Ahead ioi Business?
pect
normal
By DEXTER MERRIAM KEEZER*
Vice-President
and
Director, Department of
McGraw-Hill
Publishing
a
year, the business of producing
houses is stretched just about taut.
a new all-time
high in[ volume immediately ahead. Expects
depressing effects of expected tapering-off in automobile and
bousing fields to be offset by expanded business investment as
well as coming round of wage, salary and dividend increases.
Maintains electrical industry has particularly bright prospects.
On
In
discussing "What's Ahead for
I propose
first to talk
about the outlook for business
general,
This is
the next
over
a
in
year or so.
lines
why I
chance
utors
to
First
outlook.
In
If
i
for
bombs
the
I
as
ness
business pros¬
pects at pres¬
this
year
high
lent.
Second, I
a
observa¬
tions
about
the
outlook
for
that
e
Dexter
Keezer
M.
is
carry
is that busi¬
right through
on
into
and
next
in
very
I
it
explode."
to
that
I
that
American
which
business with
blowing the
with
hydrogen
prospect
gear.
istics
seg¬
of
t
n
business
personally
don't
think that World War
III, with
nuclear weapons, is
going to be
started soon, but on that I am no
expert.
I can
only hope.
The
(London) "Economist" remarked
not long ago that "one of the
hy¬
drogen bomb's nicer character¬
ent are excel¬
make
a
start
bits
will
few
have
distrib¬
general
don't
we
strate, general
shall
to
you
word it is excellent.
a
to
shall demon¬
with
the
on
world
cuss,
glad
am
talk
subject to dis¬
pri¬
produc¬
are
you
we
is very
reluctant
hope and expect
going to encourage
are
that reluctance.
In
fact, I cheer¬
tion of electrical construction ma¬
terials
stantial
This
concerned
the
electrical
and
also
is
—
appliances.
cheering prospect
a
accomplishment
will
Finally,
shall venture
I
that line.
the
Right
about the economic out¬
look
for
business with which
immediately and directly
you are
panding
the
as
of
the
We
distribution
the
—
as
business outlook
the other two
as
I propose to tackle. This
because I am talking to
is partly
experts,
and I am only a transient in the
field myself.
This is dangerous.
also because the
is
is
now
by conflicting cross cur¬
and
of
amount
imagine,
I
fair
a
However, it is of such crucial
importance to be thinking straight
a
we
States
$370 billion.
been
Business
and
If
wide
rate
a
That is still the problem
of the human race, and
enough.
most
virtually all of Asia.
But for the
economic
key
the
States
United
problem becomes that of distrib¬
uting enough to keep the mar¬
velous
productive machine we
have created working at a satis¬
As
nation
a
that
have become
we
we
under
are
so
com¬
no
pulsion of physical necessity to
purchase a very large share of
what is currently produced. I do
not
know
just how large that
share is, but
that
case
at
everything
the
sometimes
is produced
what
of
lies
economists
optional
call
consumption.
ferable
fit
it is easy to make a
least one-third of
that
zone
and
de¬
Consumers
take it or leave it as they see
without
any
immediate
sonal
inconvenience.
were
to
the
leave
But
per¬
if they
33 %%
a
ter¬
rible
depression would be upon us
almost immediately.
ago, it's
me
this
a
state
Key
down to
billion now.
turn
out
nificent abundance.
*A
of
talk
But
of
the
is
done
part
pulling
American
business is
can
That
Plants
survey,
larger
a
industry
than
before, showed that Ameri¬
for
more
it has
lion.
This
above
planning to spend
facilities
new
than
is
this
year
spent—$29.5 bil¬
ever
increase
an
the actual
of
5%
expenditure last
year.
So what
the
is
what
as
have in prospect in
we
civilian
part of
has
rolling
a
our
economy
be known
to
come
readjustment,
expansion in
with
parts taking up
some
the slack in
others.
won't
we
do¬
are
developments
particularly powerful
out of the recent
us
been
been a housing boom which has
consistently refused to follow the
judgment of many of the experts
that it ought to fold up.
that
production
neither
be
I
anticipate that peace of¬
underway are going
to pick up enough momentum to
lead to major reductions in de¬
have
perfect.
surprised
off¬
In
if
in¬
fact,
I
industrial
and business in gen¬
eral sags a little this summer. But
I
am
confident
that
expansion
will take hold in the fall
shall roll in
1956
with
level
of
and
we
high
a
business activity.
Encouragement Ahead
investment
ness
had
some
ex¬
tremely important "and encourag¬
ing news.
It disclosed that
American
business
is
already
planned
for
planning to spend
Usually expenditures
for
a
lower
the
and
standable
hence
year
than
those
for
It
reason.
anticipate
readily
a
all
is
are
planned
immediately
year
offing,
to
in
the
under¬
impossible
capital ex¬
the
penditures which passage of time
will prove to be
necessary.
So
with
a
high level of business
very
investment
already
planned
for
is
business
not only the
our
investment.
most
crucial
but
economy,
special importance to
you.
It is possible, of course, to have
business
be
in
thriving in general and
miserable
a
hole
in
a
spe¬
of
confident
am
year—with
a
enough
sense
that
to work out
readjustment in
expenditures rather
violent
shall
we
ing
too
which
they do, I
But if
reduction upset
pressure
busi¬
desperately
are
providing
cilities
essential
such
,
behind
public
schools
as
in
field inquiry convinced
however, that general pros¬
perity is also good for the pawn
shops. But what about the elec¬
Eelectrical
and
Happily,
trical
as
erally,
we
must
the
great
If
we
good
fortune
in
a
more
in
of
of
being
expendi¬
peaceful world,
readily
catching
public
up
whole,
now
activity
in
and
about
for
field
of
a
one-
announcement
lar
volume
sales
of
is
ness
ing
record-break¬
a
investment
this
indicated, busi¬
planning
in
generate
fears
that
have
outlook
(1)
some
with
it
and
demand
for
replacement
trical
so
power,
of
in
such
affairs
mag¬
It also under-
by Dr. Keezer before the 47th
National Association
Distributors, Chicago, 111.,
Convention.
Electrical
May 25, 1S53.
-of
the
I
am
both
sales,
But
among
and
I
expect
production and
housing
not
am
fear that,
as
to
in
terms, of sales
wiring
Equipment
(2)
which the electrical
of
the
electrical
industry
into industrial
goes
In
dollar
of
they
we
expect
appliances to
higher this year than
in
the
1954.
volume
vision
sets
We
of
and
sales
radios.
producing
of
facilities
the
slack
to
take
created
than
more
subject
8%.
to
Lower
which
I
and
housing.
I
also
to
cut
ute
to
increases,
pretty
a
through
our
the
We've
When
it
is
all
added
same
nal
9
at
electrical
wholesalers.
dollar
what
an
in
its
year.
the
of 10%
present
some¬
that's
total. But this
promises to
be
total
in
the
neighborhood
larger.
industry
use
—
materials
above
total
of
is not
that
about
in
to
be
1954,
$1.9 billion
pro¬
i.e.
about
with
as
present
Distribution
trends
increase
10%
distributed
continue
won't
over
went
South
be there will
continue to
But
in the
even
tions
of
the
more
country
Continued
op¬
to
buy these securities.
June 1,1985
Price 101.421% and accrued interest
a
selling them at
rate,
too.
But
a
I've
of
We've
be obtainedfrom the undersigned.
HALSEY, STUART & CO. INC.
phenome¬
found
no
country.
do sub¬
stantially better than the average.
Due
may
the
evenly
Greeley's
West, and those who
or
just happened to
Bonds, 3%>% Series due 1985
Copies of the Prospectus
be
the
Those who took Horace
advice to go
a
offer to sell or a solicitation of an offer
offering is made only by the Prospectus.
an
Uneven
If
ex¬
rate
year
inspiring
awe
to contrib¬
annual
a
Last
condition
dilapidated
end.
an
million
the
up,
And, from all I can find
out, the same thing is true of you
Dated June 1,1955
course
a
return,
1955 promises to be the best
year
the electrical industry has
ever
had, in terms of volume of
of:
supplies.
supplies
and
and
industrial
for
13%
First Mortgage
starting
prices,
year
recently been producing
automobiles
about
now
wide
economy,
unit
account for the difference.
decline in the production of auto¬
dividend
the
tele¬
In
shall
Central Illinois Electric and Gas Co.
up
by
for
in
of
volume, the sales increase in ap¬
pliances this year will be much
decline.
much
look
increase
same
dollar
reasons
of
which
volume
$4,000,000
is that I expect expansion
business
investment
in
new
a
use.
consequence, busi¬
a
elec¬
electrical
were
about
ma¬
This year we expect the dollar
volume of sales of electrical con¬
The
taper off.
those who
among
in general will go into a seri¬
One of my principal
ness
ous
those who
automobile
for
prospect of very thriving business
for that large part of the
output
motive
Immunity From Auto Decline
maintenance
parts
also cannot last.
much
the
equipment. The result is
year
instances
Electrical construction
terials—i.e.
pro¬
some
vided
with
existing facilities is also moving
along at a very high level, and
the
boom, for which they
facilities
new
Production
year.
main¬
can
industrial
better. I propose to take a look at
struction
as
power for machines and in¬
dustrial processes.
It looks to us as
though in dol¬
somewhere
duces
the
more
gen¬
motors, controls, transformers, etc.
(3) Appliances.
which,
on better
light¬
conditioning and
air
more
good
as
business
our
constitutes about
This
is
outlook
with
This
ing,
the
ab¬
facilities.
readjustment in
government
Outlook
be
would produce a comfortable roll¬
ing
Business
business
the
this
defense
saving could
needs
works
should have
cutback
to
tures
any
public
our
spend $100 billion in the
next five years.
able
with
holding
equip¬
total volume of business ap¬
proached $6 billion. Even with
from all I can dis¬
outlook for the elec¬
the
cover,
Century
recently produced the esti¬
up
be
your
that
of
least
industry will be taking a
steadily increasing share of the
total
building cost as there is
trical business?
Fund
needs
at
be
con¬
sales.
mate
minimum
will
will
industrial
And the electrical
own.
me,
sources" by the Twentieth
catch
to hock one's possessions.
little
fa¬
A very careful study
"America's
Needs
and
Re¬
to
business, and
be built
adversity and hence
general
A
highways.
of
shop
pawn
on
badly.
ness
the
roll¬
a
its
that its prosperity might
have
government
than
let a
later
ment
be about 8%
of
riod—about
concerned.
struction
sales
field
fense expenditures during the pe¬
am
construction
and
the
cific business. It recently occurred
to me that this might be the case
I
commercial
increasing
1956., and 1957 and 1958, too, we
have the prospect that there will
continue to be great strength in
of
housing
in 1954. As I have
much
as
is
year.
much
in
it
as
this
down
year,
but it really" .doesn't.
While housing may decline a
bit,
plants and equipment in
hew
1956
let
some
this
equipment produced by the elec¬
trical industry will be about
10%
larger this year than they were
planning to spend almost
for
posed to $1.7 last year. That may
seem
to fly in the face of
my
expectation that there
will
be
greater insistence
And for 1956—and 1957 and '58
too—our survey of plans for busi¬
one
now
automobile
housing
nor
kind
be
single sector of
re¬
tremen¬
a
to
expect
production
This
Rolling Readjustment in
Government Expenditures
sorbed
One has
Fears
of
every
any¬
dous surge in the production and
sale of automobiles. The other has
been
Annual
rate
a
now.
been
cession.
is pro¬
New
covered
year
dicated
don't
pect the round of wage, salary and
vividly underlines the importance
of having the most effective pos¬
sible system of distribution for the
products which our farms and
factories
now.
As you know, two
mobiles
Distribution
For
our
was going
$54 billion two
of about
ing right
have
ex¬
program
It
on.
for
personally
setting of the
tain the terrific pace they have set
factory rate.
rich
right
other up, we've never
where hear as well as
in
Plans
this
We
calculations
your
higher than ever.
So in terms of the things
people
use
for peaceful pursuits, as op¬
posed to preparing to blow each
grown
producing
we
remarkably
a
margin
total
of
about
Where defense business
at
$40
that
rate of
a
simply to the civilian part of
grand
been
concerned.
economy, the volume of business
is smashing all previous records
about
has
es¬
In the meantime
limit
you
a
be
investment
Equipment.
which
mild recession.
tion in general, and your field in
particular, that I am emboldened
to try to make a little contribu¬
tion to this end.
My courage in
this
regard is strengthened by
my awareness of the way in which
the importance of distribution has
increased
as
our
country
has
lem
is
through
years
in wealth and prosperity.
Through almost all of recorded
history the central economic prob¬
about to
are
tional Product hit
of distribu¬
economics
the
about
High
new
United
have
will
vided by the results of our Eighth
Annual McGraw-Hill Survey of
are
by
slugging.
cross
now
All-Time
passing the previous alltime peak, established about two
years ago, when the
Gross Na¬
outlook for
distribution
electrical
blurred
rents,
as
that
prospect
wears
I
breathing
these contractions
clear
its
a
total national volume
our
of business.
that hous¬
year.
business
year
fensives
all-time high so far
the total volume of business in
This, frankly,
comfortable a part of the
concerned
electrical products.
is not
tablish
the
American
I think it is
little
a
lot
a
grounds I
fifth of
I don't
Prospective
few
a
remarks
can
take
have
we
(and
assume
spell later this
along
to reflect upon.
in
to
course
ing
fully anticipate that the coming
Big Four talks will signalize sub¬
marily
for
alone
detailed
more
won't review here)
wise
of electrical products about
business prospects.
your
very
comfortable
.
that ground
other
of
But to offset
Business?"
It
housing are
But, in running at
the rate of about 1.4 million starts
wLh
no
,
in
prospects
obscure.
more
Leading business economist calls business outlook excellent,
{
we
course.
The
Economics,
Inc.
Company,
in fact,
as,
So we've got to ex¬
in production
have always had in
cutback
some
9
June 8,19S5
who expects sales to run any¬
where near as high as 9 million
one
I
sedate
sec¬
there
is
on
page
a
39
i
10
The Commercial and Financial Chronicle
(2642)
However, the Silver Pur-
system.
lei's
Repeal the
impartial person
who knows anything
^bout money
is against these laws."
Why have
they not been repealed? It is ru¬
Nearly
Silver Purchase Laws!
I
<
because
open market.
One
after-glow of the once powerfui silver bloc. There are probably
*
silver
a mone¬
hue
not
and
of view, and asserts that only selfish interests will
require a great nation to place a false
valuation on the backing of its currency.
silver
cracked- the
has
Mexico
The producing
interests got into the ring and up
went the price of silver. For ov°r
two years the
more.
once
forces
which
control the
of
blood
life
silver
the
know
that
these
But they
been ready to face the
industry in jeopardy.
person
his
m
rignt
mind,
— suppliers
unless he has some selfish inter r\
take over. We est, will defend laws which rehear of inventory problems—per- quire a great nation such as our<r
haps tax problems. It is reported to place a false valuation on backthat the actual demand for silver ing for its currency. In this case,
—
It would be very inter-
light.
was
esting to know what the actual
supply and demand picture was
during the period of March 11 to
rious
rumors
which precede
J.
Ramsey
r'ce went
market
enough
,
believe
to
it
/T.en'
Bc'nriiwei, *r
.
a
R.
(
F.
was
shrewd operator.
He shops around the world for
der
c.\Tits.
Aia fnmMor nnttpm was folThe old lamJar pattern was 101
mi..
Jpwed again. There were rumors
i bout activities on the part of the
),',SSlanthertare%BomeShwhondstm
why
ouires so
that
jn
production
of
the
above
Mining Company. An analysis of
this company's report for 1951
little country recoins—or does it?
many
^
_
.
,
,
..
Let
take
us
a
quick look at the
%
1
copper,
.
about
n.
and
supply
«—
is of
interest.
Could
it
•
n
lead, and zinc producers.
King." His aetiviare quite under■:-Candable.
It is alleged that he
, c erates
the world silver market
J.'r the
benefit of Mexico—certhe
:
"Silver
and
'.cs
motives
.inly not for (he benefit of the
raver using industry. The simp e
v ehicle
enabling Senor Gomez to
t
ttain
i
silver
is fhe
success
cV«ase
pur-
of this country,
Which is determined by the Silver
policy
Purchase
i
laws
These
Laws.
onKciriTr
in
pro-
rinmpstin
domestic
} roducers if they take their silver
to the Treasury. There they will
o
vide
a
subsidy
eeive
)
901/;
the
to
cents
ounce,
per
Vhus, the silver using industry has
j.tren deprived of approximately
Chicago, Chicago
Chioago
& Co.,
Richmond
&
Roosevelt
Boston
Ccmmodore
Kirkpatrick,
lie
v
Hampshire House
Barton
Kennedy & Co.,
Lm: street
Commodore
,
Mericka
J.
'
Roosevelt
Roosevelt
&
Co.,
Cleveland
Inc.,
Pierre
tr-gocd,
Rusoeii
Arthur
a
&
Kidder,
V, m.
s
Co.:
Blair &
C.
Ci:y
Roosevelt
:
Rcoscvclt
Hamp.hire House
Co., Chicago
Chicago
i.
.
Roosevelt
Nolan-W. B. Hibos, Washington,
Roosevelt
C.
Johnston
Ginther,
Eowle~, Winst
Co.,
&
& Co.,
n
Cleveland
!
;
Houston
Roosevelt
Roosevelt
The
Bank-rs B'nd Co., Louisville, Ky.
W'hito, Hat tier & Sanford, New Orleans
St. Rogis
Eqi'it bie Securities Corp.,
ivlayfair House
Hobson. Wm. h., jr.
iiioway, Lawrence b.
Arpdcn,
Johnson, Fred f.
Bar
Johnscn' Kenneth s-
Indianapolis Bond
Indianapclis
Jordan, g. carl. jr.
R.
Kenny, George p.
Wil is,
Key> Albert L-
Fclger,
&
•
:
Knapp, Alfred s,
Pres
Kenny &
Rauscher,
San
Roosevelt
m.LriiJtr
^
Share
Corp.,
Ro0sevelt
Roosevelt
;
Boston v>:
Metropolitan House
Ayros, Richmond
B.
Hjbbs
&
Roosevelt
Co.,
Roosevelt
^
D. C.i
Corp., Chicago
cA
Pierce
&
f/
/
"
Roosevelt
^Philadelphia
Co.,
Inc.,
Roosevelt
onio
An
Co. of Mar 'land,
Trust
M'Cormick
&
Baltimore
Roosevelt
Chicago
Co.,
Roosevelt
Goldman, Sachs & Co., Philadelphia
5jci1fvaln£ l^ton h.
Martjn- Ge0I^e L-
tic nal
Intern
Fey
Ycrk
Bank
for
Reconstruction,
City
Dun & Brad treat,. New York City
Thornton, Mohr & Fari.h, Montgomery,
•
Roosevelt
Alabama
R
"W
Houston
1192 Park Ave.
c/o Dr. F. Thomp cn
ri
Epy"e^ wL-wfllace
Te :as
,
PeiiK-h, Milts
John
Feterson, Raymond p.
E-uiiable
Nuveen
f'n"«r,
m. 4
&
E.
&
c<-rp.,
C"..
Trust
en
R"an.
s-^T^nd
Pittsburgh
Sh
&
Roosevelt
Paul
Roosevelt
Co., Houston
Co.,
Chicago
k.
Richmond
Str.r1-:i
6c
Roosevelt
Philadelphia
S^ribnT,
&
Ne-"haua
Andor
Arthur b
I
Co.,. Chicago
Wood
Northern
A.
3an Antonio
j.,
S-curiLie-
Undc:"-."-od.
The
o
Deane
Far-Id
C?
L
Perhaps the silver
in these coins
m S"' reacn tne market in suca
n-noorWs *«, to disturb the balanco which it is so desirable and
tify these subsidies which merely
profits
of
these
com-
The Iaws providing for
tHhese relatlvely smalI subsidies,
re^-rd'^ss of need, permit Mexico
d
th
producing interests to
panies
&
Co..
Pierre
Roosevelt
Toledo
Biltmore
-sSfe cartNe"
Whipple'& Co., Chicago
Druxel &c C.
Philadelphia
Center Republic Co.. Chicago
:
First Boston Corp., Philadelphia
Bacon,
Stern B
Wcter,
J.
C.
&
ts.
Co.,
Roberts
Dcrvar, Ro
ert'
Wheat 6c
F'delitv
FtradT.
Unim
"T
Roosevelt
&
Kic'der,
Peeb
B'air
Co.,
C.
Inc..
Newark
Lvnchburg
Ftatler
c., Davenport, Iowa
Co..
dy
Co.,
Co.,
ilip
syiwrtw., Horace c
W.
Roosevelt
Roosevelt
Legg &
The
Roosevelt
Richmond
Tru ^
John C.
&
Kan "s City
Shefelman; Seattle
Co..
Tavlor
The White-Ph
Roosevelt
:
& Panooast, San Anionio
Sunderland, Edwin p.
sTZX-i*: I T'*
Roosevelt
.f
&
Baltimore
Co.,
B
;
Roosevelt
Roosevelt
.
Boston
Roosevelt
st~n
Thornburch
Co.,
Cincinnati
Roosevelt
piofitab e to maintain for everyVan DcventT Eros., Inc., Newark
V:n Drvent-r. Ludiow
Fahev. Cla k & Co., cv-veland
one but the silver users.
-Roosevelt
cn'
Fh/'adc'phia National ^ank. Phila.
It would not be very nice of us ,
a noose around the necks of
yete/'j' Taomas
Baker, Watts & Co., Bakimore
to disturb th s set-up. However, the silver using industry.
j. Taomas
Press
I urn afraid this is going to haoG<oTrmerci"7 & ^'n^ncial Chronicle
pen. Our Silver Purchase Laws,
course, there may be some Berk, Edwin l.
Chicago Dailv News
which enable Mexico to control
New York Times
P^?rv HefferSf Paul
the market are unsound from a jyho can u__e a subsid
Rvon
Robert T.
T
T"
»- Co.
monetary noint of view.
Senntor
secretary numpnrey,
monetary noint of view. Senator jccreiary numpnrey in opposing
Green, that mtriot and statesman hieher tariffs for the lead-zmc
from Rhode Mand, has introduced
sa^ tpmlirv^iL
D'Arcv
Jok G. Sheldon
a bill to repeal these laws and that now have a temporary -unsound
doughty warrior from Rhode
of high-cost producers
For F. L. Pulnrm So.
Francis I. Du
Island is determined this time to ^hlch must be absorbed 01 ad.
K
;
Philadelphia
Chicago
i
Co.,
&
Nclan-W.
Bos cn
Unicn
&
Co.,
6c
&
Wujt'v Du'Ies &
a.
Crouter
prich & Co.,
Washington
Phst
end,
Robinscn
Kindred
us,
W.
Town
Nashville
Philadelphia
Bodine,
Arthur
subsidy under the Silver Pulcha'e
Oklahoma
Inc.,
N.
Compan;. Incorporated, Phila.
DcHavrn
Kirtiey,
Durham,
Corp.,
Peab.dy &
Fo ger,
;
^7,906,288 in ISS^it received a
be that
Ed"arJs,
J.
Lt.cud
m., Jr.
Faust, John n
p^d
Washington. D. C.
Securitie.s
^
^
I
P^rk Lane
Buyer, New York
R.
EJ°i J aHm
—
,
nd
Fiist
85/<^ cents
;
Co.,
Ferris & C;.,
crocks, Rag.naide.
— --
n
&
Brot ke
B
Nap
demand;
.no
. •
>
pr,,
Laws estimated at $149,669. A
T- ■
Jr.
price higher than 85V4 cents \
However, if you really want the pneetagher than
ounce—if maintained over a f
per leading lead producer reported Scfn!L: mKKi "
i newer, you will have to ask that
ourue^ n^maintainea^oj/er^ pe earrtlngs of $7,523,503, and it re- Schoene"«rger, c a.
II
I
Rfhulpr
Rll CPll
tute gentlemeh who lives south nod o^time-rrngh^bring some yi ceived~ a
subsidy ; estimated at Schvier, Ru sell c
hnrder
Spnor
Rodriso
Senor's chickens
home
to
;7,
A
Ssi'ert, Rus ell e.
the
boidci
benpi rtoarigu
$22,575.- A leading zinc pioducer shefelman, Harold s.
(• omez.
Who is he? He is an old roost?_Or^perha^he would like repoHed earnings" of $21,477,610, Sikcs, W. Travis
?
iquaintance of the silver users.
? f
a
and ^ received a subsidy esti- Stevens, Wi'liam A.
—3 would say he is best described
^ 1 n
determined by him. mated at $81,000. Can anyone jus- itra^erWLud«'enva
;k
•
H.
Wm.
ine melting^ point ottnese coins Qne of the iargest domestic cop- Ponicaii, Frank
t a* is the point at which thper producers reports earnings-of S;1^' jreo L-
< Durse
1
nal Lank of
Bri tain
Clark,
j
Ir
(S.
Nrt
The
it dropped
18,
Roosevelt
Beach
nblf'wer & Weeks,
New York C.ty '■
cents, than on
Lack to 88V2
Miam.
Flo
coinage orders so that he can keep clearly indicates that it would Mathews, Arthur c.
April silver from the market. His coin- have operated profitably without M°hi\ Sidney j., Jr.
it dropped to the present price age deals with Saudi Arabia are the subsidv provided by the Silver
Mcsi,v
Icn T
87 cents—a net gain of
1% very interesting. One might won- Purchase Laws.
March
On
Mince.
& Co., Minneapolis
Co.,
Crutt nicn
4
ufln p'
R
&
G.
F iist
niid r.
Bra icy, Donald
Cock
Hotel
Roo^^veit
Taylor & Co., C.ncinnati
H.-ydcn, Miller & C^., Cleveland
result of supply and demand, mentioned
ores,
that - we
can K°turek, A:noid J.
One might wonder why a higher ignore them. By far the largest Lankford, Thomas
price is not maintained. The Senor, proucer in this group is Sunshine Lundfeit, c. e.
is
Dain
Erlw.
J°^n
as a
cents per
to 89%
up
15
Marcn
on
the
j
price,
rise in
a
Donald
naive
«
^
^
M.
At oil!
Fafis.
silver worth 87 cents per ounce Ginther, Nelson d.
in today's market is falsely valued 0^;^'Thomas
at $1.29 per ounce. We might ex-; Hattier, Gilbert? Jr.
pect this sort of thing to go on Henderson, Bxriow
18. Certainly the supply has been behind the iron curtain, but not
controlled.
v b
b
*
here.
.
•
1
...
price of silver
At this point it might be interThe greafar^ument for-retention
at
851/4 cents esting to examine the price of Gf these laws is that they are necper
ounce. 85% cents per ounce, which Senor essary in order to maintain the
Then, sudden- Gomez seems to favor so highly, production of copper, lead, and
ly, with the For over two years this price was zinc. There are so few producers
usual
myste- maintained.
Surely no one is. 0f silver, except as a by-product
using industry
have kept the
J.
A.wLi, \vm., Jr.
of New
.
The producers
work.
to the market
Finn
cry
silver using
Eond Club
Eraun, Ersworth & C^., Detr'lt
R'ckknd-Afc'as Nati<-n»l Bank, Boston
from a handful bf'Bucci, Lcn
constituents, who for' their own1 chamber, canton
selfish interests keep1 the entire cldrk- HarolJ wNo
Whip
Name
so-calied
the
of
who
bloc
laws should be repealed.
laws which
defend
members
some
have
Calls the situation unsound from
the market of silver.
tary point
and
:
Silver Purchase Laws enable Mexico to control
our
Among the out of town guests who will be in attendance at
annuai iiela day ci t
e Municipal
York, to be he.d Friday, June 10th, are:
free^ams, TSiaiwM"
answer is AndI.^s, r1 mn b.
the
advances in the price of silver
as set up by the principal Mexican
silver producers, Admiral
Ramsey points out that this unsatisfactory situation exists only
After commenting on recent
^
of the pro¬
some
even
Thursday, June 9, 1955
.
t'*e.2znu
ducing interests would like a
Legislative Counsel, Silver Users
.
Municipal Bond Club of hew York Guest List
every
mored that
DONALD J. RAMSEY (Ret.) *
Association
REAR ADMIRAL
By
;
Laws are still on the books.
cnase
.
.
.
.
,
"o—!
Trading Mgr.
With
PonS
justed mto the nation s economy.
CHICAGO, 111.—Francis I. du
BOSTON, Mays.—F. L. Putnam
1 ually.
"
'
the able economist and sound
further quoted as saying
To Return to the recent price money advocate from Illinois, is that the
lead-zinc industry was & Company, I-e. announced on
fnmimfp S?wh t/V,/3'/'
rf
i ise, it will be interesting and inC.hairma„ ot the subcommittee greatly overexpanded. Surely Sec- .Tun. » the
• ToV»
- '
'
lhat associated
John G.
SH-idor) announce
has
roifirv
H't^^hrpv
"fill
not
become
itm'ctive to see how Senor Gomez which will handle the bill. There 7*°rv H—^rev mill not con
( r prates
During the week pre- will be snme a^mn and some «ur- r1°ne q *"bsHy at the expense of .JD'Arcy as Manager of their with them as manager of the mudethe price rise, the informa- prises before this
session_of Con- the si^ ^ind^t^Jtelp Hading deleak's outThat° Mexico has no gress iV"pnd*»d!"' OthVr "Senators, out these undeserving producers o-r^ment. Mr:
Ion & Co. and prior thereto with
inore
silver
to
sell.
The
next particularly those from New EngFinally, a Vice-P r e s l d e n t of D Arcv is well
F. S. Yantis &
Co., Inc.
3 j.rnor is from one of the produclpnd — Senators Saltonstall and ^merican Smelting and Refining known m ini ig interests that the British are Kennedy
from
Massachusetts, Company, one of the leading sup- vestment cirs-uopping around for a million Bush and Purtell f»-om Connecti- P*lei"s to the silver market, re- cles, having
Geo.
c/ances
of silver.
Then
on
the cut, Pastore from Rhode Island— cently said, and I quote:
It would been with F L.
million
5,6
silver
of
ounces
an-
see
it through.
Senator Douglas,
'
..
,
,„;ii
,
,
1
Ji.
i.:n
con-
rr,.
_____
K
Hall, Jr., V.-P.
i
3
«orning of the day of the price
there
se
is
rumor
a
orders for silver.
ijY
Senor
tossed
der
Saudi
who
Arabia
ounces
Then
on
has
the
billion. T,effic3?»tors.
requiring bankers, financiers, editors,
sil-
of Mexican
Senor
bows
out,
the afternoon of March
have
89%
silver.
cent
15
Addi-
lioiial word leaks out that he will
cated repeal of these laws.
twt
for
will
repeal
momentum.
The
soon
me
decent
repeal.
of him.
It would be
market
interesting to follow
it
as
cents per ounce.
^
dropped
to
87
Gomez starts the
e rGSU s
Convention
of
the
Wrrnr
*~&©c.ation, Chicago, HI-
Sup-
©f
the
There
Federal
'
.
our
the
for
medium
silver
supply
the operation of
West; and
There
a
are
Manufacturers'
spite the fact that
the
world
even
they ad-
are a
still
are
has
control
for
by
un~
those
who
every
nation in
abandoned
such
a
a
j«unj.-t»Arcjr
th° Boston Se-
and
NSTAV In 1950
They prevent he was President of the Boston
open Investment
C-ub. The firm a^o
that
RichaH
C. No-
to our very existence. We look to well, who has been for four years
this
Congress to
portant
on
still,
remove
us,
their
monetary system.
not only
with
Spencer
Hall, Jr. has been
Vice-President
E. Pollock &
Co., Inc., 20
Street, New York City.
BOSTON^ Mass. — The Bristol
Securities Company of Fall River,
-
free and
announced
W.
Assistant
Onens Boston Office
Secretary of
price
and
market. They are a constant threat
silver standard de- their effect
"
Pine
very
ver using industry.
talk about
of Wm.
answer to au its prooiems.
. pa^
Governor
The Silver Furcnase Laws nro- ?nd Recording
policies regarding silver—they
sound.
elected
yfewsafdaandtswelfare of the sil- curiae,; Traders
ad™cated foreign e the ^ interests re-.' a member of the
lt de- gardless of domestic
are
policies
George
u^,
tie?? f00!1^ for this industry ^j-je interstate
thL Power Co- of
tariffs or subsidies are the Montana, a
,.s 1S.e".
fenders of the present monetary
from the
Of Wm. E. Pollock
years,
s a i s o
Trea surer of
™
vide
-
Chairman
f^h*lsbhCk rT° mit these
0
an 1
♦An address by Admiral Ramsey at the
and
gather
29
e^Panding use v of non-fei rous pf e j
others have strongly advo-
many
Resel?e
-
the
to the conclusion that the period for
o,,r
set to keep increasing a non-existent
also asset which already totals neaiay
into the ring a coinage or-
1/ million
\/e
ro«in'r^
larg°
of
t°°llsh indeed to .lumo hastilv putnam & Co.
vitallv interested in repealing
The stage is
Gomez,
from
ver.
and
are
Trask
&
Co.
,t
«
,
f0 rld^^treet^nSer
the
direction of Frederic R. Mayo. "
Cxfayson i\6pr6Seiltatives
Myron
Geist,
and Ernest
A.
Copper,
Donald
J.
E.
Massair
Herbert
Heifer
have
S.
and
been
but more im- previously served with the Navy
named representatives for A, J.
in World War II, has joined the
Grayson, 92 Liberty Street, New
York City, N. Y.
effect
on
our
Putnam organization.
Volume 131
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2643)
-
v* **
i
,
,
*
,
'
.
field
The Economic Aspects
V*
viet
Oi the Cold Wat
nuinon
cruae
61
Secretary of State
4o
irom
oaiion
Cold
portionaie
War
-
struggle wth Communism,
and progress
resources
those of the Soviet Bloc.
in the Commupist
,
Sees discontent and
and concludes that
area,
sy-tem has been challenged to such
i
that it is obviously
groups
The western world, ifor
years now,, has
been en¬
gaged in a so-called cold "war
with the Communist nations and
many
their
satel-
liites.
:
a
Eineir
.
it
the
Soviet
b.oc
the
struggle
to
been g
losses
of
oat
all
ot
the
to
proport.on
achieve.
has
)ing on
in:many parts
of4 the
variety
tions;
with
of
co
in .the
of
<
or
world.
nations
and
excellent
ons
there
if
the
free
there
believe
to
Basic
depending
on
what
ards
Herbert
meai-
Hoover,
stand¬
o:
urement
r3-EE
Jr.
wilhout
E-E
der such circumstances!
'
e
.
dation,
v
strong
a
that
and
cold
has
war
sides
many
For the pur¬
pose of this analysis, however, it
aspects.
many
be divided into-three gen¬
categories; namely, ihe mili¬
may
eral
tary,
political,
the
nomic.
and
the
eco¬
is
the
The
has
bloc
briefly certain
of the economic aspects; bat be¬
fore doing so, a short review of
the existing military and political
situations may be interesting as
baekgiound.
f
Within
the ; last
few months,
evidence
there have been many new devel¬
fore,
found
little
Belgium, the Netherlands, Luxombotrg, Norway, Denmark, Ice¬
land, Portugal, Greece ai d Tur¬
key. It is an imposing group of
free nations, banded together for
nomic
situation.
you,
.
.
opments
their
are
on
defensive secmity. They
own
formidable
a
viet
barrier
So¬
to
military aggression in West¬
Europe.On the political side, under the
ern
Brussels Pact, the Western Euro¬
Union has
into being,
and the Federal Republic of Ger¬
pean
has
many
come
become a free and
now
Middle
the
East, it is en¬
couraging that Turkey, Iraq, Iran
and Pakistan appear to be draw¬
ing into a close and effective de¬
fensive ; alignment
>; with
each
•other.
These
countries,
often
known as the Northern Tier, have
many ties with the western world.
Tn
been
the
a
Far
East
growing
there
has
awareness
also
of the
threat of Communist
military ag¬
gression. The Philipp'nes, Thai¬
land, hand Pakistan have joined
with the United States, the United
Kingdom, France, Australia, and
New
Zealand' under
the
Manila
Pact to
safeguard themselves and
Vietnam,
Laos 'and
Cambodia,
against external aggression and
subversion.
In
the free world.
has not had
the
found
The
a
per
it
And
addition,
.
the
Japan, Korea, the
Philippines and Nationalist China.
.
of
-
the
world
have
themselves,
»d<iress
by
free nations
effectively
and
h'a v e
Mr.
Hoover
at
Harvard Graduate School r'
ministration,
.
the
,
free
en¬
.,
ll-
been
the
were
was
are
in
and
many
re-
varied.
First,
it
attempt to deny petroleum
an
to
resources
still
are
time of
the
wes.ern
woFd,
by setting
system of individual govern¬
up a
emergency,
mental monopolies in eacu
million
df
the
producing
per¬
a
schemes
was
to
output.
in¬
which
has
successful
in
so
produc¬
peasants,
than in augmenting L.e food sup¬
ply.
the field of agricultural pro¬
duction, the differences between
Communist and free world philos¬
eco¬
has
ophies
particularly sig¬
It is interesting to pause
to
fan
an
Corn-
I
system,
of
flames
and
for
first
hand, in
woiiu,
cf
It
other
many
be
cited,
with its
over,
each
circumstances
na¬
also
Ilelp to
"
In
of the
20 years.
America
Latin
Latin
America
their
in
growth and economic
of
This advertisement is
our nv.
country,
are
most
believers
in
them
of
the
private
not an
ojjer
to
sell
or a
solicitation of
The offering is made.only by
EE'---
an
Not
a
A recent study by the 20th Century Fund points out "Worth men¬
tioning is the fact that this mo¬
mentous
taking
tation to resort to governme.it.-tu-
financing.
Althcag
public leans could not be p
to satisfy the legitimate neeos
government
l
such
\
would
be
to
even
if the/
the
net
efie i
force
their
development
Cambridge,
Mass., May
1955.
the
Ad¬
18,
has
been
all
Of
the
tions,. the
great -industrial
that
one
clings
•
come
r'.C
Aero te
the
to
of providing
goal
all."
closest
would
otherwise
be
in
loaning policies will d'rccu
rather than promote, indivirE
therefore,
Wherever
Wherever
our
Export
Continued
on
to
buy these securities,
the Prospectus.
Machine Co., Inc.
a
\
v
abundance for
Price $25 Per
>
•'•:E"'r--"
Share
E
'the
is
dustrial
Copies of the Prospectus
may
be obtained from
in which such underwriters
are
any
qualified
of the several underwriters only in stales
to act as
dealers in securities and
..
is
America
eoing
faster pace than
United States.
on
at
an
E
Dean Witter & Co.
-
to
the
situation
!
of
:
Blyth & Co., Inc.
-
growing economic strength and
prosperity in the free world, the
"
ee."
Communist bloc is faced with dis¬
in
the
satellites
and
continuing difficulties at home.. It
is
true that the
be legally distributed.
it is in the
Discontent in the Soviet Bloc
contrast
in which the Prospectus may
CommunH bloc's
industrial power primarily in the
.
•
,
June 9, 19b5
V
Irving Lundborg & Co.
Hallowell, Sulzberger
Co.
possibky
- Imp^,; \
Bank has endeavored to make oi
(Par Value $1 Per Share)
-
I
eaiv,
such
E E
Atlantic, Western E ." '4 "
enjoying a higher in-\
E:
prosperity than-at any
time in its history. The per capita
E ;
income and business activity in
:
the Western European nations is E
;
higher than it was before World
War II.
Economic expansion in
;
Europe
E
the ha. id
of private enterprise. Unless c Eried forward with extreme
Capital Stock
■
'i1
-
socialist
;e :
'
.
na-
-
most
tenaciously to private capitalism
has
Friden Calculating
—v,
not in Communist
Russia but in capitalist Ameri a.
gr e: :\
ments into the operat'on or o i>
ership of many industries whi E
108,400 Chares
place
-
Yet, in the absi ni l
large-scale private foreign in¬
vestments, theie is a great te mp¬
Neti' Issue
.
l
enter
of
It
offer
i
prise system.
,
-
la p:
amounts of capital. Like
our
-E;
plans foe
expanse
use advnri
They need, and can
tageously,
relatively
average.
bu'k
'
instances," our gove rn¬
playing a part, ei her Edrectly or indirectly. For examp) %
every
possible effort
is
bpin-j
made
to
help the countries t'l
is
,]al initiative.
initiative.
struggle, at
particular
many
ment
ual
•
world
specialize I
its
and
exam pi*
the
surroundings
promoting
many corners
over ine last
are
could
available,
socialism.
have watched the
centive system in the world toda r
than that which has taken
pl'ic J
in the petroleum field.
economies,
provoke misand
antagonisms
state
are
few more dramatis
demonstrations of the vitality an L
resourcefulness of the private in-
were
to
international scale.
thesis
so.
There
-
their
stirring up industrial unrest, for
undermining the private enterthe
ing
it
created excellent opportunities for
prise
•
enterprise system, and Bolivia gives every indication of dc-
from
.Secondly,
platform
the
and
understandings
on
moment because it is in this
a
ideal
an
tionalism
become
nificant.
lor
which
>
toward
objectives.
provided
.far
the
among
be-directed
munist
But
directed at the
trouble: the collective
more
in
our
whole
petroleum
wherever the opportunity
presented itself. Their ojjectives
Live¬
deve1
free
There
excellent
of
-
and.
that
Situation
.
,
another
is
Iran
have
operate,
unprecedented degree,
Argentina have now
made the decision to return to th.s
of
..
tionalization
is still forced to
various
ing 'apathy
hand, and management personnel
on
the other, is smaller
in the
United States than in any other
mmjor industrial nation in the
contentment
*An
an
sources
result, tne So¬
increasing now
three
system,
difference in income between
•In
<
•
,
194 J.
the
agricultural
root of
have
system
world
the
to
oped to
the average factory worker o i one
Australia -.and
The fact that many
i
the
been
allowed
Lere, peinaps .more
than anywhere else, the private
enterprise and collectivist systems
a
year,
of them
farm
for us to attain
income five times
than
has
tried
crease
beneficiary of this great prog¬
It is interesting to note that
Zealand."
armed
each
none
ress.
the
separate trilateral
with
in
Our
simi-
also, but
followed in
could
the
on
can
have
have
population.that has been the chief
even
New
comfort
ta
cap
higher
Latin
agreement
Communists
of Venezuela,
Canada,
Arabia, Iraq and Kuwaitwhere private enterpr.se has been
lustration.
above
known examples ot
On the other hand, tho
economies
The international petroleum sit-
uation
human
technical, financial
difficulties. The
well
are
the point.
has
it. possible
made
of defense with
a
carry
livia
also
-.
re¬
of Iran, Argentina and Bo-
cases
surplus
basically breadand-potato.diet.The Soviet Union
than
more
get along witn
present pace indefinitely.
United States has bilateral treaties
We have also
can
is
in
constantly
countries.
They
ap¬
parently believed that such or¬
ganizations could be easily infil¬
trated and that the'r operations
by
no
The United States
we
(
p.e-collectiv zation
e
population,
On the
be in a
that
in
1940, but
of 1928. .As
we
seem
to
position than ever be¬
and-there is every indica¬
tion
t h
to
viet
collapse in
contrary,
Of
product,
goes' to
on
year
economic system ap¬
our
which
ours
International Petroleum
to
in -agriculture.
output last year was
numbers
below
to be disintegrating.
pear
devoted
engaged
about equal
Marxists
Nor does
40%
grain
stock
major depression, as
had
anticipated.
a
It
na-
petroleum
world.
sovereign nation.
In
economic
of
is
industries.
goods
smaller than
even
stronger
/the
international
scene.
West Germany has now
joined NATO, and takes her place
beside the United States, Canada,
the United Kingdom, Fianje, Italy,
explore with
is
Total
most
Soviet
example, >
lor
ineir
.
and management
lt.^ Nevertheless, most
countries
systems to
min-- to a desser degree,
of tne' our own experience.
than half of the Soviet labor
sons
On this occasion I would like to
investment
some
more
events in other fields.
EE
total
force
front
interesting and
significant developments may well
have
taken
place, though they
may not have made the headlines
in
such
spectacular
fashion
as
where
might
com-
and have engagea in governmental
operation nave
been,
own
the ; economic
on
,
economic
This * year,
other
the
from
perhaps have somewhat- Saudi
may
and'. lar
one
sources
come face to face.
Total agricultural output in the"
The
Soviet Union in 1954, by Moscow s
communist
pattern,
the
world over, has been concentrated
figures, was less than 10%
for many years toward the na¬
above
the -prewar^ level.
And
Strength
agreements are meaningless. eEE;
It
of
by no means over,
m.sc be a
Those countries which have
have
'
This
we
to'
course,
consumption, compared to
70% in the United States.
and> political
,
of
rtsouroes
is
present trend
tionanzea
and
billion
soundness
only
economic foun¬
military
v
communist-
the Soviet gross national
is
Military and political strength,
however, are basically depend¬
ent upon economic strength, and
wishes to apply un¬
one
Economic
on
has
enoug.i io~d
population
$10
,pU
degree
col • ne . < —
warmth—
on
consumers
be avoided.
war can
based
According to the admi sion cf- terprise, incent.ve system.
authorities, le„s than 10%
of
militarily,
rong
our
ma.i
Soviet
rants through¬
1
system
incentive, ,which
mrne
overdone
is,
the
munist Viewpoint,
ai^CpUntrL*n Se wor-d; hi fact,
with
our
*
increasing tne
:
the mil-
on
politica.Jy,
reason
fighting
a
s
might
years
But
remain
unified
and
ls'der-
abledeviat
political
the
out
condi¬
few
changes
many
na.y and
they
tnat
next
the
be
may
wide
a
local
In
gicby
under
gains
tor
developed
interestmg to note
they cnose to raise t.ieir direct'
that "those countries which have
military allotment by 10% to liOadopted varying degrees of So-,
billion rumes.
This expenditure
cialism and regimentation in their
will be the largest in
any po_tprice structures have experienced
war
period, and represents iour-;
corresponding declines in their
fifths of L.e amount wn.cn was
agricultural outputs. It is a con¬
spent during the peak oi the w«r
tinuing demonstration of. L.e in¬
years, that is, in l„44.
herent
carries
communists
risk
11
absorbing experience,
an
Tne contest
people/And; produttsmow in the hands of the
result oi tne
dc-( Commodity" Cred t ? Corporation,
energ.es
-
agricultural
prouucea
scana-1
tne
m
mem
and
States has
of tneir
ouject
country.
United
in^ividual
pro-;
no
concenUate
tary
ihe
uy
beoii
nas
n.c-ea^e
Government.
episode.
with
/
there
liberate 'policy of -tna
our
an
to
tons
has been
weak-
economies
discouraging
The
elecmc.
in
collectivist
yet we
Kilowatt ioars a- have
the
lowest
percentage
of
14b ouno.i in 19j4.;
people employed in agriculture of
this has been the
E-
free enterprise
degree by Communist
Sauu >
The
E
confusion
some
to
of living
a^a
joined together in their common
defense, has made it apparent that
further outright military aggres-
good
a
relative E
of the primary targets in the
entire Cold War
;
:
one
the
compares
of the Western Powers with
ana
fundamental
of
become apparent when
compared but
with the free
enterprise system.,
has been an increase
in lt»io
year
million
ions;
mere
iiowevei
economic
up trom
4j million tons;
to
High ranking State Department official, hold'ng that economic
strength is the basis of political and miiitaiy power in the V
:
-iuo4; steel is
from
oil
up irom
mn-
to-s
that
area
nesses
year to
million
power
-
cons a
ni
lo million
bo
Under
heavy industry, has. been
'compared to 1»<±0, So¬
production or coal is
Loa,tons
By HERBERT HOOVER, JR.*
E
of
growing, jtrts
lob
E
,
■
Schwabacher & Co.
Hooker & Fay
page
-
CI
12
The Commercial and Financial Chronicle
(2644)
'
V
to
goes
Leading to Restoration
Factors
The reintroduction of gold
means
the
public
from
'
"
"
gold
was
public hands and
■
■
"
"
traditional system of full con¬
our
abandoned
vertibility
early
in
Deal
New
days, the pro¬
•
this time.
and
ponents
their
views
the
would
financial and
jolt
academic pub¬
touch
the result that
in
Dorsey
the
in
any
been
.-subject .has
.the
among The rank and
file citizens. The public lethargy
generated
have
deemable currency.
Recapitulating
the
ment, otherwise it will be
to
legislation,
to
the
availability
of
rather than to
figure set by law.
serves,
(2)
gold
the
change from present policies. The
gations to other forms of credit.
proposal which is presented here
(3) Fix a definite time in the
is quite simple and should have
future
when
gold would come
no immediate effect on the econinto the hands of the ordinary
Republican party to work for the omy
whatsoever.
However, it
reestablishment of gold converti- would create a force which could citizen, which would in effect be
bility, expressed in its platform be an effective deterrent to fur- a time limit on restoring full con¬
of 1952.1 There has been no poputher inflation and would provide vertibility.
lar clamor, even among its own
a measurement of the relative
(4) Provide an objective valua¬
party members, to force action—:?,,value of gold as a commodity to tion through market fluctuations
and none has been taken. ' its currency value, thus establish- of our currency relative to gold,
pointed up by the fact that no
action has been taken in regard
to the declared intention of the
is
It is the writer's
opinion that a
gold standard must and will
eventually be restored as a means
of assuring financial responsibilfull
a sound,.sbasttvior ultimate
convertibility*.
which
.
The reasons for
adequately expressed
been
have
these pages and
will not be repeated. %What is intended is to
propose a back door method of
securing legislative action to assure the eventual return of gold
to its rightful place in our monetimes on
elsewhere, and
many
tary system.:
Such
an
act would
Why Delays in Gold Restoration
tended
The
ment
mediate
made
are
practical diffiimof full converti-
many
return
The chief difficulty lies in
fact that the heavy defense
at
a
and
time
under
cumstances
the
forced
outlays
upon
us
by pro-
longed international tension have
brought about continuing budgetary deficits. These deficits carry
with them the threat of further
of either keeping the
budget balanced to prevent raisinflation. While immediate return jng 0f the debt, or accomplish adto a gold standard would theoret- 'ditional
deficit
financing by
a
ically remove this threat, it could means that of itself would pro¬
be accomplished only by lower vide a deterrent to fiscal irreexpenditures or greater taxation, sponsibility.
pOSition
neither of which
appears^possible
Assuming that the present
SncSSifl0°k f°r the Feder3*
in
the
could
future
near
create
situation in
a
yvhich it might be
to maintain currency
impossible
convertibility even though it were
established. Another difficulty
lies
in the possibility of serious international 1 problems. due
to
the
non-convertibility of major cur-
if
the
turned
to
States
gold.
to
the
of
re-
Among the other
return
a
absence
for
standard
ment
dollar.
alone
to
a
solid
at this time must be con-
currency
sidered
the
be seriously affected
United
deterrents
live
than
other
rencies
These could
a
of
the
objec-
an
establish-
workable ratio of
vertibility,
and
con-
the possible po-
litical and economic effects of the
.
....
..
stabilization
.
-
of
rates which would
follow
,
prices
and
w
wage
be expected to
such bonds could be
markated a* a y^ry
interest
ra*e because °* the attractiveness
a
?e a&amst inflation. L.
these bonds were set up to mature
an.-is^ue of
than 20 years and were
lss"^d *n
,! quantities, it is
not likely that there would be any
tive
assurance
that the
current
debt would-be managed wisely
sjnce any inflationary government
action would immediately be refl
ted
on
the
a
premium being placed
gold bonds in the market
just as
a
a
into
bill
a
to
sort
of
But
Practically
and
a
observer
every
knew
scene
House
tied
the bonus
inflationary
the Washington
pay
an
-
member of Con¬
Congressman
provision for
scheme.
money
on
that Patman's bill would pass the
also that it would be defeated by
Carlisle
the Senate. Patman, himself, must have known
The effect of the passage of his bill was
Bi 'geroa
this.
to delay payment of the bonus
a
year.
The day Patman's bill was passed in the House he went proud-
fully around among his friends and was much surprised to learn
they didn't appreciate his success. He was even more surprised a *
few months later when he appeared before the annual convention
of the American Legion and instead of being received as a hero
he
booed.
was
The Senate had killed the bill because of the money
features Patman had associated with
it, whereas the Senate-would
undoubtedly have approved the Vinson straighf-olit bonus payment
I tell this
story-because of its bearing,"The political atti tude,
highway bill. I should preface these remarks,
too, with the statement that although I have heard a lot about the
efficiency and teamwork of the White House staff, I have never
on
the President's
such
seen
ineptitude
as
instance.
has been displayed by that staff :in thi»'
'
r•?;
«-
_
We start off with this
premise: There is a general recognition
highway system is in a deplorable shape*, that ..our high¬
way transportation is at the point of bogging down which certainly
affects the country's economy.
that
our
In this light, President »Eisenhower appointed a committee of
highly respected citizens to study the situation and come up with
a report.
This, the committee headed by General Lucius Clay did.,..
The committee conferred with the leading highway officials of
full
gold
appropriate
of
gokL bonds
inrcresting
the
from
those of
will
be
left for
favorable
reaction
the
to
SACRAMENTO, Calif. —Emer¬
L. Henricks has become asso-
.^4h-jyLutual ,F.ui
ciafes, Y9T)3 Capitol Avenue".
of their
the
E.
nected
with
Schaffner
Daniel
of Beverly
is
D.
now
con¬
Weston
&
Hills.
With Mitchum,
Jones
(Special to The Financial Chronicle)
JOSE,
now
Calif.
—
Robert M.
with Mitchum, Jones
& Templeton, First National Bank
Building.
Carroll, Kirchner Add
(Special to The Financial Chronicle)
DENVER, Colo. —Morris Hoff¬
is now with Carroll, Kirchner
man
Jaquith,
Building.
Senate.
He
obviously
didn't know
much
about the
subject
revised upwards three times
was
before it passed the Senate.
The Senate Democrats, with one exception, voted solidly for the so-called Gore bill.-They were joined
by 14 Republicans. Where was the Eisenhower influence? I saw
not the
slightest evidence of it; indeed, I saw very little evidence
.
•
Inc.,
Denver
I
as
can
ascertain,
not
a
single
highway
authority
:
appeared before the Senate committee in behalf of the Gore bill.
Instead, they all insist it is inadequate, that it will not produce
the highway system demanded, that 31 states and the District of
Columbia would not get enough for their needs even so far as the
by
trie Administration,
their
needs
Club
With Whitney, Cranmer
(Special to.The Financial Chronicle)
DENVER, Colo. — Kenneth A.
is now
connected
with
Dealy
Whitney, Cranmer & Schulder,
sound currency Inc., Railway Exchange Building.
purpose
of the program.
-
Now, the House Public Works Committee has been conducting
hearings for several weeks on a single highway bill, the Adminis¬
tration program.
The only witness who appeared against it, to the
best of my knowledge, was the new comptroller
general, who ques¬
tioned the wisdom of the proposition of creating a corporation to
issue bonds, payable over a 30-year period from the Federal gas
and oil taxes.
He
agreed it
was a
resembling the Administration
•
perfectly legal proposition.
The story around Washington has been that the good old
House under good old Sam Ray burn would pass a bill very closely
<
But good old Sam Raysome
of the partisan :'
fever that .was displayed in the Senate. It is time, he
thinks, for }
the Democrats to have their own highway bill.
To this end he
called a meeting Tuesday of the Democrats on the House Public
burn
seems
have
to
become
program.
infected
with
Works Committee and called upon them to write their own bill, a
stepped
up
would be
a
version of the Gore bill
12-year program
the
1
five-year program
as
\
The Administration's plan to fi-
j
As of this
ous
as
of
a
highway program through the creation of
from remains to be
Federal
cor-
{
So just where the money will
\
a
*
,
writing the President's highway program is in seri-
danger. No
way program.
seen.
one
»
It
poration to issue bonds is tabooed.
come
it passed
the Senate.
instead
provided for the the Gore bill.
nance
-
:
because with his consent the bill
accomplishing the
FRANCISCO, Calif.—
Martin
&
^
own.
whereas 18 states would get-more
which, however, they wouldn't be able to use.
The general criticsm of the Senate bill by the experts is that
it would just throw around more Federal aid for highways without
(Special to The Financial Chronicle)
SAN
^
So, Senator Gore of Tennessee introduced his highway bill in
posed
Joins Daniel D. Weston
Slater is
.
gress that inasmuch as they are in control of that body they sheuld
quit following the President's lead and develop a domestic program
than
Co.
.
fthe 10-year program, pro¬
ciated.
SAN
..
some
of his aides.
(Special to The Financial Chronicle)
son
..
.
through
seeming jealousies at the White How^e, the
report was kept on the shelf for nearly two months. In the mean¬
time, there is a growing agitation among the Democrats in Con¬
invest¬
dealer's
as
the report that was produced came from them:
highway officials of all the states, the Governors of the states,
Insofar
*n n0' le.ss
Prejudicial etteet on the normal
refinancing of the cunrent debt,
Jf1 *acd> d would provide a posi-
,-yp.
introduced a bill to do just this.
Wright Patman of Texas,
gress,
But
Joins Mutual Fund Assoc.
°fShnndi ca^dhe Zdl
hp
straight,
a
course.
off the bonus to the veterans of World War I.
in¬
basic idea.
'
they pursued
The late Fred Vinson, then
no¬
a
many
up
unfavorable
or
J® V®« Jlfll dthp
handle t e s tuat
convertibility. "Active op-~place,
out-
iS
correct and that a debt in excess
Pro?°®fd 1?^' J. yfnnHc
better had
above-board
on
could be taken by them..
bring
matter
pro-
their
My mind goes back to the early 30's when v.:;|
was an issue before Congress of paying r.
a
point of view, as
a purely mone¬
tary
character.
Without
going
further into these at this time, the
well
pitious than the present. Whether
0j not they favored sound currency, the nation's monetary authorities would be placed in the
more
in
lost
there
cir-
bility.
possibly
to
that
so
considerations
pol¬
culties standing-in the way of
return
reissuance
would
icy: of eventual establishment of
gold convertibility, but at the
same time allow the change to be
There
been much
open and
get
game,
It turns out that it would have
shennanigans.
States
United
the
to
measures
immediately
a
that
standard
redeemable in gold.
commit the United States to
esoteric
the mayors.
Place other nations
(5)
the issuance of long-term bonds
f
layman, doesn't understand the art of politics. 'How¬
a
the
tice
b^bon by Congressional action,
but to further provide that any
borrowings over and above that
figure, which might become ne6essary in any period of emergency, could be made only through
Often times; the
the country and
.,
public.^e proposal is to continue the
this view £?^yenti°nal debt limit at $275
ity in the,.handling .of the
purse.
fix
to
used
be
being smart.
on
an
not so infrequently these artisans of the
supposedly
tibility.
,.
.
could
pursue
realistic ratio for ultimate conver¬
^ Plan of Restoration
.
he, being
ever,
credit
policies by providing a
the market place of
relative value of gold obli¬
in
measure
they
bill.
inflationary
Deter
re¬
theoretical
a
and fiscal
most
for a
support
find
it
following
the
themselves
objective in a roundabout way is not
apparent to the layman and the explanation to that layman is -that
arguments
Make the debt limit subject
(1)
could
deflation.
mild
even-a
result
difficult
would have to be accom¬
The people would again
gold
in
their
possession
which likely could not be enticed
back into the treasury without re¬
sudden
that
economy
of
convertibility
plished.
credit, hard times and unemploy-
in-
strong
no
terest
Robert 'W.
off
full
currency
public must be assured that
need not be restricted
The
with
lications
the
itself, the
of the proposed
time
result
not
to
reverse
of maturity
some
give
problems
have
appeared in
the books.
that the govern¬
method which for the proposed
to study the would accomplish
involved,
and
which things:
by
money
would
on
Politicians pride
manner
some
tions, it would seem advisable to
a
gradual return to sound
print. ,Gener¬
ally these dis¬
necessary
renege
on
assurance
which
on
of these considera¬
face
be
By CARLISLE BARGERON
bonds would in effect be the date
to Gold
Return
adverse
subsequent
not
ment could not
date
make
public
cussions
the
In
continuously
in
With
Standard Recommended
aired
could
proposed law is
i
Gradual
A
convertibility
have
of
Con¬
the
government's pledge to pay in
gold, as occurred in 1933, such a
step could be considered after the
position can be expected from
those groups which feel that they
stand to gain from continued in¬
flation, and it is probable that
they could block or delay action
on any attempt to restore gold at
opponents of
that
assure
gresses
Treasury borrowing above that figure be in
that
time
the
From
risk
would
amendment
to
bonds redeemable in gold.
withdrawn
minimum
a
political effects. Although it is apparent
that
a
constitutional
study of the problems involved
so as not to give a deflationary jolt to the economy.
Proposes
that conventional debt limit of $275 billion be continued, with
any
return to sound currency
a
with
a
method which would permit a
proviso that
practical at this time,
provide a means for
toward
writer cites reasons why it would seem
gradual return to sound money by some
purse,
structure
the Republican Administration to
make good on its promise to move
an
advisable to have
would
and
eventual restoration of the gold standard as a
of assuring financial responsibility in the handling of
Predicting
the News
both
debt
our
feasible and
Dallas, Texas
Company,
Washington
Ahead
bonds
is
into
Director of Research,
Securities
From
Feasible
Both
Bonds
And Practical
By ROBERT W. DORSEY
Southwestern
-*MVr :'.
■>
.
a
over
time.
same
Gold
Of the Gold Standard
■■■■■'..
• •'
•
fiat
when both circulate at
premium
a
currency
the
/
.Thursday, June 9, 1955
.
questions, either, that there should be
a
high..
-
»
»
.• *■>
Vohime 181
i.
Ml A
Number 5436
The Commercial and Financial Chronicle
..
.
(2645)
(5) The operations of specialists
the exchanges,
curities to United States citizens,
with the objective of developing
(6) The
on
specific legislation if needed." ;
.
By J. SINCLAIR ARMSTRONG*
Chairman, Securities
'
^
'•
i
traders
and Exchange Commission
attacked to proxy regulation
|,j
with prospective extended bearings
tbrough
-
years
(8)
regu¬
of the
American
people has been directed in the
past few months to the subject of
the
stock
market
by
the
study
undertaken
by
the
Committee
a
/dnfCrlange
its
on
Study,
views
(11) The
on
the
together
print of
Stock
Market
with
individual
minority
and
views. of
Neither the 1,300 answers to the
questionnaires
nor
Committee's
Banking
and
Currency of
the testimony of the various witnesses were particularly directed
the
to
United
States Senate,
Any
study of
the
stock
the
question
regulation
proxies
listed
of
of
the
of
the
.
Federal
solicitation
of
security
holders of
However, the
sufficiently in the
companies.
of
'•
subjects
of
pos-
less
or
brokers'
virgin territory.
help but be
that
aware
at
the public—
public mind because of the strug- trusting, gullible public—may be
the
Federal
lation
of
reguof
se-
curities.
J. Sinclair
sure
most
followed the
daily parade of
of
witnesses
Committee
several
23.
Those
drawn
from
who
from
stock
which
weeks,
'
investment
lasted
March
for
3
to
were
officials
among
^?.Uin^ier
Bank-
testified
exchanges
and
of
mittee contains the following
ment.
They gave
and
their
about
markets
the
how
operate,
national
econ¬
omy.
aw
/i
finanrinl
j
-thp
1
fhA
hands
professional
was
of
amount
and
Thus,
of
gathered
under
Committee
tee's
staff.
expert
into
the Committee.
presently
the
This
is
study
by
the
the Commit-
by
an(j regulations
of
the
Study
hearings
of
as
such
listed
of
rules
the Commis-
on
phase
contests
for
corporations
—
investors.
This
blanket
inis
,
authorization
D1.an^et
garding the solicitation of proxies.
"Senator
Capehart has intro¬
duced a bill (S. 879) which would
certain
additional
rate control, and effective corporate democracy through the exercise of the right to vote, share in
importance. A sub-committee under the Chairmanship of Senator
Lehman will shortly hold public
hearings
these subjects."
on
'3
.
,
,
.
_
•
More hearings
be held after that if the Com¬
decides.
from
ultimately
the study no
nected
with
the
Committee, least
possibly say.
In
will
one
Senate
of
addition to the
result
not
con¬
That which I have just quoted
^as
°' 'J16 Committee report,
£ut
the minority report of four
Republican Committee members,
Senators Capehart, Bricker, Ben-
I,
unwilling to admit this to
tains
the
a
law
People
agency.
tell
often
are
Commission
about
being defrauded. This impedes
our
investigative
work,
When
the
illegal or fraudulent
inherent
difficulty
of atanti-fraud
tempting to enforce our
law against people—many pf them
Americans—who are actually in
another country.
The
more
about
that
can
such
subjects as these by
impartial and objective study
Congressional committee
a
with
the
Senate
high
standing
the
Committee,
Banking
of
the
better.
Not
without
importance is a
concluding sentence in the minority report of the four Republican
Senators I
the
Committee
In
only
in
study
by
markets, speculation in 'penny
stocks,' and foreign sales of se-
This
a
to
bill introduced
were
held.
before the
Instead
there
that
con¬
announcement is
vides
mean
that
one
of the
great committees «iMhe Congress,
a committee which 20 years ago
participated in bringing forth the
securities legislation
which has
been of such
great influence
a
be
different
subjects.
.
shall
person,
t
by
means
or
instrumentality
any
Committee
been
authorization
in
respect
Information
for this report was
supplied to a major extent by the
Securities and Exchange Com¬
mission, the Federal Reserve Sys¬
tem and the New York and Amer¬
ican
week
♦An
Stock
Exchanges.
there
was
Also, last
released
address
by the
by Chairman Armstrong
New
England Group of the
Society of Corporate Secretar¬
ies, Brctton -Woods, N. H., June 1, 1955.
before
seems
considerable
will
list
security)
for
you,
registered
on
so
ulations
Commission
the
as
prescribe
necessary
as
Notice
on
that
taking
tations
a
couple of points about
it
an
in listed
companies. Does
that Federal regulation of
mean
statute.
.
the solicitation of proxies in listed
or
persons.
mean
that
failed?
there
is
Does
about
it
to
be
sale
of
low
including the
registration
of
$300,000 or less,
stocks,
from
for
ful
directors,
for
It
says
"any
for controlling
or
it shall be unlaw¬
person" to solicit
issues
of
the
American
(4) The
segregation
of
tions of brokers and dealers,
func¬
J-
it
vention of such rules and regula¬
mean
that
the
Securities
and
Exchange Commission may revise
improve its existing regulatory techniques which are based
upon
the statutory provision of
and
Section
which
14
has
of
the
been
Exchange Act
in effect these
past 20
will be furnished by corporate
secretaries. Perhaps some answers
will
emerge
from
the
Senate
Banking Committee study. Cer-
tainly some answers will come
from the Securities and Exchange
in
Commission's rules.
that
Notice
tions
as
it
says
"in contra¬
the Commission may pre¬
scribe." There
is
no
indication of
restriction, any limitation on
the rules and regulations the Con¬
gress intended the Commission to
any
prescribe. Nor is there
tion
an
indica¬
of the type of
regulation the
Congress intended the Commis¬
sion should devise and promul¬
gate.
rule
But,
notice
that
whatever
regulation the Commission
should prescribe under this broad
or
Congressional mandate was to be
regulation which the Commis¬
sion should "prescribe
as neces¬
a
sary
or
interest
appropriate in
or
for
the
the public
protection
of
Commission as time goes on. Or, investors." This last, I think, is of
perhaps answers will come from major importance. Throughout all
of the statutes the Securities and
aB three.
Exchange Commission administers
cussion of the problem into three
Phases
first legal, second eco-
there flows the thread, expressed
in section after section and clause
nomic
after
and third regulatory,
Alfred E. Smith, who was a
great
believer in constitutional
neither
an offer to sell nor a solicitation
The offering is made only by the
clause, that
contemplated
by
of an offer to buy
Prospectus.
the
Continued
any
on
of these securities.
Share
I
Lehman Brothers
regulation
the
White, Weld & Co.
June 8,1955
the
proxies
new
contravention
of
legislation to improve
the techniques of Federal regulation of proxy soliciting? Or does
some
•
priced
exemption
it
.
investment,
(3) The
line
unlawful for the management,
be
companies
has
first
the
In
"It shall be unlawful for any
person.
." It doesn't say it shall
Copies of the Prospectus may be obtained in any State in which this announcement
from only such of the underwriters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such State.
(2) The
difference
in
credit
regulations with respect to listed
and unlisted securities,
may
appro¬
says
capital markets, is
interest in proxy solici-
is circulated
(1) The growth of institutional
or
priate in the public interest or for
the protection of investors."
the American
Price $19.25 per
I
na¬
any
travention of such rules and reg¬
($1 Par Value)
briefly:
any
tional securities exchange in con¬
to desire further
importance, and
them
of
security (other than an exempted
investigation. Each of these is of
1,000 pages), there has also
released
by
the
Senate
Banking Committee a very inter¬
esting staff report entitled "Fac¬
tors Affecting the Stock Market."
any
any
the
over
of
national securities
exchange or otherwise to solicit or
to permit the use of his name to
solicit any proxy or consent or
facility of
.
which
or
commerce
Subjects To Be Explored
of
any
of the mails or
I have examined the Committee
subjects
for
use
interstate
of
unlawful
be
by the
Common Stock
further
lowing
very
follows:
as
"It
Signode Steel Strapping Company
report carefully, and find the fol¬
document of
What does if
secretaries?
a
the Con¬
gress to the Commission. Section
14 (a) of the Exchange Act pro¬
Capehart,
significance of
corporate
broad mandate,
very
160,000 Shares
it is
(which
a
to
a
broad grant of power by
is
definitive
a
the witnesses taken at the hearing
comprises
this
general investigations on at least
10
is
it pertains to proxy
listed companies,
in
for
instance
one
reference
hearings
proposed
all
In each prob¬
to ourselves
say
I'm going to divide up my disconcur
over-the-coun-
on
The law, as
solicitations
and in view of the bill (S. 2054)
just named:
"However, we do
recommending further
legislation to cure the
purported evils found in the stock
cerns
-
we
con¬
recommendations
no
market.
Senator
face
we
first "Let's look at the law."
the paragraph from the minority
report was the bill (S. 879) in-
years? I ask these questions not because J. can answer
them definitely or certainly at
this time. I can suggest a few apbe learned proaches. Perhaps some answers
remedial
could
testimony of
to
people
are
the
appear
trading
provisions of the Exchange Act.
by
authority stems
our
passages:
Banking
all
"taken"
the
staff
ter
A
during early June.
so
to
the-Commission is the subject of
rath(rr comprehensive rules re-
there
What
to
autnorization
legislative proposal and that
mittee
before
enforcement-
been
enforcement
tional
have been scheduled to commence
this
very
day and to continue
may
il-
appropriate in the public in¬ offering comes by mail or phone
terest or for the protection of from Canada, there is the addi-
"Significantly, this report
one
and
or
Begun
study—proxy
control
any-
sion may prescribe as necessary
following
Proxy
do
fraudulent
get at them. Further,
who have
reluctant
contravention
neB; and BeaB> there
staff.
Further
to
truly unfortunate
consummated
are
can
by
iw
opinion
solicitation
these
Commission's
an
+
enormous
unlawful
require
*
I
ComrhicfiKw? supplied answers, on
SL
S ° ^cent and not. s0
«fCctnrtcS
^narleti?ncf
i
oJha
replies to
S,
re'
ceived and analyzed l
by the Coman
the
ln
securities exchange.
This quesec0n°- tion> together with the whole subir6S iect of modern methods of corpo-
m
JLicta
mittee's
with
14
Act,
of
The
legal offerings is that they often
take place by telephone or mail
dis-
i
Hp'alPrJ iniwBtmfn?
fmm
be
jn
part
•closures from persons seeking to
control issues listed on a national
Ksno
finanfiSi
deals
Exchange
thing—
the
relationship to the governpublic, and their re¬
to
Regulation—Section
Securities
proxies, simply provides that it
shall
govern¬
ment and the
lationship
the
which
of
stocks.
and
"Proxy
of
great deal of
a
interesting- testimony
the ^ securities
pas-
sage:
over-the-
establishments,
universities
willing,
um
the passing attention of
witnesses and of the Committee. The report of the Corn-
b^keragehouses,
press,
large
unsuspecting,
ceive
companies, labor or¬
ganizations, banks, business and
industrial
certain
an
taken advantage of by some
fraudulent and illegal promotions
of Canadian and domestic urani-
the
at
hearings before the Senate
ing
you
accounts of the
news
of
albeit
well-known corporations in
the Pas* two years that it did re¬
some
I'm
Armstrong
8les for control
uud
insider
Now what is
We cannot
the Commission
subject
subject
lem
of
source
from the Congress.
and
necessarily
includes
ing,
introduced by Senator Fulbright,
dealers' functions and the opera-! 1 think ^ is a fair inference that
tions of specialists and floor trad- the subject of Federal regulation
ers on the
exchanges. But others, °f the solicitation of proxies in
such as the growth of institutional
listed companies has received a
investment and its impact on the great deal of thought by the dismarket, and the sale of penny tinguished Senators on the Bankstocks, particularly in the context inS Committee of both political
of the "uranium boom," are more parties.
of
market
was
the
troduced
Commission as
presently constituted is that
is
it
legislative proposal referred to in
■>
investigation by the
segregation
ties and Exchange
a$sn^iUi°n °r
and
Securi¬
the Commissioners of the
more of assets and 500 or more
security holders under the report-
of "■ defense
.
Committee. Some have been studied exhaustively in the past, such
as
The Law
Fulbright introduced a bill (S.
2054) to bring certain unlisted
proxy
"Let's
say
One of the basic philosophies of
released, Senator
was
to
used
*
In View of the references to
proxies in the report, in view of
the fact that the one definitive
i
the
,
price behavior,
-
stock
are
-
(Section 16)
impact
on
These
members of the Committee,
Com-
mittee
Report
.
:
(10) Proxy regulations, and
contracts
tee report
the. In-
'
The adequacy of the insider
sible further
Committee
of
:\i
cor¬
about companies receiving public's savings.
The attention
the
Art
7
government,
look at the record."
At about the time the Commit-
which
adequacy
WU
provision
democracy.«Discusses numerous legal, economic, and
regulatory phases of the problem. Declares any evaluation of
bow rules are working must be made in light of statutory
objectives of fair disclosure In security holders of basic facts
j'r
The
/O?
(9)
porate
.
extent, to
vestment Advisers
SEC,
lations which have worked well and
importantly furthered
floor
lawed
by Senate Banking Committee,
on the subject, asserts
of experience, has devised proxy soliciting
of
exchanges,
Exchange Act has effectively outmanipulative activities,
attention to importance currently
|.
,
operations
the
on
(7) The
'•
,
ChairmanArmstrong calling
;
,
13
r
McCormick & Co.
Congresspage
33
.
■■'
v'
By the end of this year, every;
child. o£ school age on the reser¬
Role of Government
e
.
Thursday, June 9, 1955
■;,if
■
v.\
The Commercial and Financial Chronicle
C2frij)
n
vation will have his chance to get
.
.
Economic Freedom Should
education.
an
'■
■■
A
x:
•V
In
■
In
the
By HON. DOUGLAS McKAY*
f"
to come^rnany^of
years*
these Indians
will
enter the normal
be
prepared to
life of the com-;»
WALTER H; WHEELER, JR.*
By
,
f-Ay
A
•
-
Secretary of the Interior
munity,
and able to stand side
Commenting
r
only if
Says
act wisely.
we
-
take
bilities
out iof
government
'he
goal of a $500'billion econin the next ten years is an
(my
/citing
<
It represents
a
the
one.
challen""
to
tions.
indus-
^
Nation's
vital
macmiie.
i
L
am
is
i
this
of
vome
Jes with
Lope
history.
His confithe basic soundness of
in
^
.
to
say
been
never
erty;
f
L
j
We
Irssage.
U
e
brighter
I
said
'•'!
n
i
Clonal
act
of
mind, of course, this
infinite,
the
and
age
heralded
has
it
progress
up¬
rise within
of
Interior
the
:T
—If
we
as
a
p
•
'
is not
d
I
C;
be
l.;e
.
requires hard
work
heights,
there
{
the
and
full
a
ex-
and
in-
genius which has marked
U°:oal Scan°X|beh reached^to
a
we
rrust
-
avoid
which
>
i.m
to
would
infla-
store
vast
v
:
muct
ex-
,
continue
l.jreaucratic
to
controls
eliminate
of
natural
re-
insist
the aWuexxC
appliof wise measures, both as
..^•xx.«»*
.xUun
mVst dePsnd uPon water,
uPon minerals, upo.n energy and
HPon * e *a.nc* and .^s. Products.
of
upon
w^wxx
f,
which
will
Mid
steady
growth
i/mic
our
1
::iditures
e
irnent
rvsj
our
the
by
have
$11
to
Federal
been
ex-
Gov-
reduced
billion.
Taxes
by
have
been cut. The reduction voted
1 j the
83rd Congress
the
s
And
largest
in
his
Congress
in
a
year
ago
report
this
year,
to
the
I/resident said:
"Farther efforts to reduce Fedc-al
expenditures, together with
increasing revenue from a tax
V
growing as the economy exA.ands, should make possib'e some
ase
additional
; ome
general
tax
rje-
dJctions next year."
Certainly,
L
directed
of
to
fostering
These
;>ected
*wnen
An
very
the
be-
expan-
the Nation's
economy
jjrotecting
the
people's money.
)lower
the
of the President have been
(. „oMs
integrity
and
much
area
and
the
of
Administration
to
the
critical
a
by
and
the
Eisen-
were
test
transition
address
of
last
from
a
the
United States
than
more
half
Expanding
shift
of
requirements
the
population
westward
are
resulting
constantly changing and increasing demands for land from
in
the
public
domain.
y
and
for
year
the
f've
past
300,000
acres
have
into private ownership by
years
some
Publie sale.
This land has thus
been added to the producing plant
?Jf ^atl0n* lt; Pas been placed
10
4r de ^uPPart
.
governments. Such
expected to increase
sa.es
pro-
S^^wely in th^ next decade.
J -ln
tePor is-the Bureau
f
T
Xa.ian Ai airs, with its respon-
^U1!?Sxl
Tarlniore. ^a!1.
?,00 ?! -!hS ^d.ian P°Pu;ation .o£
he United
States,
together
their
millions
of
minerals
and
the
means
man
°'Let'me
cite
After
the
one
Department's
fie*d
waters.
safeguarding of
resource,
ministration
This
ermen.
$5
was
volume
in
But
than
value
it
favor
that
children
of
tended
cence
-in
14,000 out
class
inadequate
hu¬
a
priceless
fMs
office, we-disof
28,000
on
the
never
at-
age
school because
of
This
example of the
school
of
the
?b-
facilities and
room
teaching
staffs.
We laid the problem before the
Congress
sary
and
fu^ds
to
secured
the
provide
the Navam children.
have
neces-
schooling
We
now
the
schoohs, bo+h the d^»*type a^d t»"»'Ters to fol-
year
low the roving families.
Of
,Qr,
1DOW.
the
never
there
14,000
gone
new
below
the
potential.
around
are
9,000
in
supply
'
us.
Our
research
action
which
health
factor
there
in
is
seafood,
f"rrf>d to
as
"^"^nts
who
before
school
is
neeued
is
sisting, and
made
as
we
s
nation.
re¬
11 continue to resist,
w
communism.
forces
The
of
world
second
answer
still
so
r°-
tinue-to
help, other free nations
•economically, and we will co¬
operate with them in
nas
uccxi
.
ex-
and"
Li.XiX' "'
..These
only
two
ovide
p
.
and defensive
our
'
■
mutual
development
with
studying
are
the
and
working
industry and with collaboratories in formulating
lege
nutritional standards for its
use.
-
to the chal¬
answer
recent years.
in
strong,
the
between two of its
depressed
areas
cf
Asia
and
the Far Fast. In thus work, our
scientists are striving to alleviate
hunger and privati-n,
familiar handmaidens
those
of
two
totali-
Within Interior is the great Nat;onal
P°rk
Servlc°
comprising
the management of the parks and
the
national
monuments
from
coast
to
Capital
coast,
as
well
the his-
as
While
economy is
uneasy
factor
happy
—
and
business
the
Thls. ls .tlLe one plac!e
the
'.n
DePartment humming with mdustry and activity, where men and
ar^_oe
^
^as
j.
j
exists
rr.ajor forces—
The th rd ma¬
farmer
critical.
is
—
The
in-
small
the
man,
about
his
ec
nomy
tick, and also critical of much of
it.
Tnere
is
great deal of mis¬
a
understanding
which
our
arrojplishments tomorrow,.
the
currently
peace
n
whlch the citizens of today
can
has
between
several
threatened
past
us
the
to
st fie
economy, and can do so a^ain.
We
can
have
another
wave
of
inflation, with all the chaos and
injustice and da.-ger it brings; we
can
have
strikes
and
a
series
and
we
ever
.
social
jealously guarded.
and
ever,
there
must
.
of
widesjread
political
infighting;
might, God forbid, have
^.is country great areas
for/°ur children's children to visit
and
economy
ple making it
from aU the p~oIf we have this
up.
understanding,,
our
technological
remam ln
exclaim
in
wonder,
Continued
cn
as
page
we
42
*
An. address
bv
Mr.
Wheeler
before
Meting of tho Chamber
cf Ccmmer-e of the United Slates, Wash¬
fJ>e 43rd
Annual
ington, D. C.
of
economic facts of life.
.
*
would
quarrel today with the viewpoint
that we who are in posit ons of
business
leadership have a rekponiibility to meet this chal¬
lenge. I want to discuss with you
some of the things that are being
dene, as well as some of the things
I believe we should be doing. But
belore
doing
well
be
if
us
took
look
closer
a
the misconcep¬
voiced here today.
tions
•
of
I think it would
so,
we
at what underlies
Let's
first
ask-ourselves
misconceptions exist.
of business
to get mo.e
are
ourselves sho..ld first try
a
why
If we
under¬
to gain
greater understandir g of others.
Our
quartet, wallowing
mythical
in ignorance,
expressed a number
of distressing misconceptions and
they are typical. The question is,
"Why do they have them?"
Let's not be too qui.k to assume
that their misconceptions are the
result of propaganda spreads by
subversive or leftist or^an zat'ons
individuals.
of
Some
them
be ascribed to del berate m:s-
but
are
sins
own
and
omission
of
larger
much
a
the result of our
com¬
mission and of the nature of peo¬
ple.
Consider
for
human
the
moment
a
shown
first
—
s;de
of
it
as
it
was
the student and
by Sally,
by Jack, the steelworker, tne par¬
ticipants in the Simula ed telecast
g£
interviews.
Why do so many
lean toward the
philosophy and criticize
the order of things as they exist?
people
young
Marxist
a.l
in
tunes
holding pack the hands of time. another serious depression from
Under their jurisciction are mil- which we p obably never again
1,?1nJs of acr^s of untouched; virgin could emerge free ani who'e.
w^btcrness from which man s m- Whether these things come about
veutions are foiever barred,
depends, I think, on the degree oi
long as I am secretary of understanding we can get for our
am . prrpta;
the
Interior,
these
wilderness
areas-will be
front, to earn the con¬
the
public, gam its
sympathetic ear, and tell it the
fidence
part of them
proprietor, is
status, and
public is largely ignorant of
recent
„
our
an
capital and labor.
jor
toric shrines of the past through
ip-^'-ation for stiU greater
wider
a
information,
Labor
and
gov¬
demagogue
in business don't take action
we
on
and
Uneasy Peace Between
concerned
tarianism.
if
rr av
An
The
ignorance. We've seen
this happen.
It cojld happen on
a
much larger scale in the future
standing from others, I believe we
a
people who are a part of it.
We
certainly don't have this under¬
standing and satisfaction yet, al¬
though we have made some prog¬
ress
stifling
other
action.
on
however,
partial
act'ons,
witn
us
-phe Department is also keenly
interested in increasing our suppty 0f protein foods from the sea.
The need throughout the wor.d is
for m0re protein, particu^rly in
ig¬
But
easily translated
strife, unw.se leg¬
these
::V'U' v:"
Our scientists
no
cur¬
our
:
lenge. And both of them are pred¬
Thirty-f've rounds of frihmeal,. icated on our
ability to maintain
which
contains
the
Unknown" a
strong and stabilized economy.
>
or
350 nou^'1" °f c^rn.
This, in turn, largely depends on
will put the seme weight on a. a
widespread understanding of it,
pig as 640 pounds of corn feed and satisfaction with it,
by all the
alone.
ba
may
to
I don't believe any
answers
a
have been
we
subversive
the
this
preserve
is equally clear to most of us. We
have' have been
helping, and will con¬
tmough f°eding
with
livestock
poultry.
the
tomonow?
obvious
two
are
the Unknown Growth' defense.
presence
to
better
a
The first is that
miracle-
a
win
to
and hence keep
s.andard of living
already
have
I am
scientists
example,
that
or
people,
assure
Tliere
enormous.
For
to
service
prov.ded by the commitmen
informed that the possibilities are
found
striving
better
or
It
progress.
and
ernment
thrives
misunderr-
.
be
can
industrial
islation,
W. H. Wheeler, Jr.
lifting our
far beyond the possibilities of a iy
singly-directed economy?
What
and
the
from
underway in ™any fields
.
school
of
sources
For
children
to
of
con-
material
norance
with
product
the
still
was
deterrent
into
each of
is
constantly
new
thing..
rent
enter-
a
and
know exists is t*uly a
we
immediate
independ¬
find
Dangerous
ignorance
dangerous
more
pr.ses,
greater
pounds in
The
are
ent
jV:i,, X
4
pre- •
which
catch
million
catch.
Fisenhowpr -Ad
took
covered
most
activitv
the
with
of
acres
mitorv
war
lion
billion
or subver¬
It is up to
war
The Misunderstanding Is
standing
to
shellfish,
valued at $345 million to the fish¬
this
>
Each
sub-
McKay before the National Industrial
Advertisers
dissociation, Washington, D. C.
the
of many of the Western
the
had
Secretary
Bureau
density
for
policies
of
area
Navajo Reservation had
of his Administration, the
3 ung
r ion
from
the
is
their
history.
economic
earlier
fish
of
through
.L'L\
us.
than four mil¬
and
,
system,
c
how
serve
fish-"
States
elusive and -mysterious it is
>
"
Interior
total
eco-
Administration,
foundation* stones
economy.
surface
are
this
commercial
United
produced -4.7
ol Land Mmageme^t mFactor. Its
o.ishtu
a ^*nJ*c ahout^?o% of the
sound
a
of
plant.
Under
c*Dse
assure
the
are
Within
ij taxation and in Federal spendi
joint national effort
to maintain an expanding econ-
passed
enterprise.
We must
the
the
pornds
seas
great
...
busi-
over
and take the Government out
U: private
Any
.
States.
true
as
stop the State Social-
r-ped.
r
enable
their tracks and keep them
in
j-ihs
poli-
of goods and services.
We must
We
economic
masquerade
jxx..«iSion
i
only if
people act wisely.
las
(*
of
...
These
ingenuity
Lie President's words,
m
to* ly,
are
we
1954,
eries
omy
new
ireedom
of
uilive
\
It
achieve
ot
1
in-
daring.
V.o
•
automatic,
is not
economy
Vvab'e.
requirements
call free enter¬
we
have so demonstrated
to
the world
that little
of substitution by another
sion, should " remain.
.'Economical¬
our
be met.
siderab'y
sources.
L ogress
if
sea
Ass'sting the Fisheries Industry
lion's
.
uy—"
vanning
-nutritional
the
next decade, the Interior DepartThe Department has embarked
ment has a fundamentally imof stable buy- portant part to perform, for In- on an intensive program to assist
terior
is
the
Federal
agency the American Fisheries
Industry
neonlp
act
chiefly responsible for the Na- to develop increased yields and
power.
'
drawn from
be
In the forward movement of the
present
assured in dollars
)
.
will
threat
on
level of
HD.it $360 billion to $500 billion,
;
to
merit of what
itself
keep
this
fish and shellfish will have' individual?
more
1953
Department
a
to
:
prise
well.
as
by 250 million
Ilole
The
;
^
are ;-f
alive
we
scientific
a
'
lio-;
How
concerned
Alaska
in
public understanding- of economic principles;;y>
great spirit of
with economic*
freedom—thisBy 1965,
faitn
in
the
r is estimated that America's fast"
integrity ; andgrowing
population
will
have-;
reached
the stage where .10%- liberty of the.,
or
its
from
threshold
mankind.
he said—"If we as
wisely, our annual
output can
rade
for
z e
wnat
people
have
surging
Douglas McKay
me
p n a s
.achy
more
also
advancements
In
the
on
are
atomic
—
let
or
great things.
o n
Presi-
(' sj'it
■
i
n
'..he
?
of
State
as
is
"
the ' country.-
of
resources
this
But
promising.
Llsenhower in
is
that
ship, the future of this country has
by
L resident
)
tonight
you
result of the President's leader-
a
e x-
has been completely
economy
I
the
pressed
of
justified.
coin¬
Meeting
er
our
of the
businessmen work harder for
urges
guardian
is
dividual
president met the test is now agency
dence
the
and
in : Wyoming.
are
designed to assure
preservation of the fish and
wildlife
matter
a
acci¬
no
that
dent
the
sure
It
elk
the
.
t
X Lit better
services
policies of
firm
the
well
How
American economy,,
participant
fishing
a
with its.own
as
Deplores lack of understanding of the
of profits, prices, competition, and other aspects
nature
the
to
Pacific,,
deeply
as
It has become almost trite to gerrius can bring"'uS a decade of
of
It* point out that we in the United progress, the like of which -the
world has never seen. And, if w^e
States are the last great strong¬
maintains migratory bird refuges ;
can achieve this, and share it, the
across the United States.
Its vast hold; off free enterprise and in¬
of
herds
peacetime economy caused
tentative economic contrac-
a
the'North;
the
of
economic freedoms.
,
be
international
various
agreements.
-
some
concerned with the freedom of the individual
anji
responsi-
,
and
Alaska
to
reaches
where the Nation is
in
resources..
the economy.
'
with
extending from
broad
Urges a partnership
approach by government and private enterprise in expanding
viding and preserving natural
I
New England industrialist holds Business must
Interior is the Fish
Service/
Atlantic
private enterprise. Reviews
achievements of the Interior: Department and its role in pro¬
nnd
Within
>
Wildlife
must stop the State Socialists
we
J1
'
-
by side with
-their fellow citizens.•
tracks, continue to eliminate bureaucratic controls,
their
iiO
the prospect of a $500 billion economy in the
Secy. McKay points out we can reach this goal
on
few years,
laext
Conn.
president, Pitney-Bowes, Inc., Stamford,
by, knowledge
fortified
-
must remember that young
We
people, when we have been suc¬
cessful in rearing them, are natuially idealistic, and we should
also
that
remember
most
of
us
strived to
bring them up that way.
Notice how quickly * SaTy" con¬
verted the Marxist phi osophy in¬
to
her own
terms:
"Sha:e
and
alike."
share
losophy
if
a
it
We
of
total
all
govern¬
lives,
our
consequent loss of freedom,
is
literally
applied
economic system.
also remember it is
to
this phL
know
mean
direction
ment
and
can
inculcate
in
our
to our
But we should
a soirit we try
children when
they are young.
It
and
is
a
one
fine
to
piacticed in
be
spiritual
strived
many areas.
Continued
cn
concept,
for
and
However,
page
43
Volume 181
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2647)
foreign
Credit Policies of American Banks
In Financing
Foreign Transactions
terms
risks involved, Mr. Strong
policies of their Central banks.
to.
of
ganized last April by the Chase Manhattan Bank
Calls
u
manufacturers
and
;
banks performed an
outstanding service in facilitating
our
postwar foreign trade. The.v
financed a major snare of our ex¬
ports and im¬
ports,
which
between
and
$360
1954
ceeded
billion,
of
gold
The
foreign financing
credit terms
and
the
United
A
States
foreign
eco¬
nomic
and
technical
I
programs. The
¥
-■
«
commercial'-'
fully
•
have
*
competitive
foreign
exporters
manufac¬
JV
-
...
letters
impoxt^rs.
and
Vv*" ^
of
credit
from
There
has
been
lack of
no
c
Last
year's foreign loans re¬
ported by U. S. commercial banks
were the largest of the postwar
period and brought the outstand¬
ing total of such advances to $1.7
billion.
in
the
The
substantial
outflow
bank to evaluate future
a
any
rates
and
address
U.
S.
market-
of
gress
About
the
the
economic
industrial
national
trade.
competition
European
termediate and long term credit to
The
NEW ISSUE
,
offer to sell
nor a
solicitation 0} offers to buy
offering is made only by the Prospectus.
*
any
oj these securities.
\y
-..
June 8, 1955
foreign bankers.
■/
;
45%
Common Stock
(No Par Value)
right
to
subscribe
ten
at $30.25 per
scription Warrants will expire
June 22, 1955.
at
being offered the
at
the
rate
of
one
June 7, 1955. Sub¬
5:00 P.M., Eastern Daylight Saving Time, on
tation
on
The several Underwriters have
agreed, subject to certain conditions, to pur¬
chase any unsubscribed shares and, both
during and following the subscription
period, may offer shares of Common Stock as set forth in the Prospectus.
Copies of the Prospectus
writers
may be obtained from any of the several under¬
only in States in which such underwriters are qualified to act as
Prospectus
may
legally be distributed.
of
and
good suggestion.
a
White, Weld & Co.
banks
Robert Garrett & Sons
Baumgartner, Downing & Co.
Goodbody & Co.
nature.
on
-
Stein Bros. & Boyce
Mead, Miller & Co.
C. T. Williams & Company, Inc.
and
Bank
a
of
other
types
The extent
is given in
to
of
the financing of
credit
as
required
Such
ity,
the
VvdS
revolution, etc.
or
such
for
guarantee
to
it>i>ueu
the
information
or
include
a
and
management;
products imported
beyond tne control of
importer.
risks, include failure to pay
war
of
profit.
manufacturer
110
which
incentives.
nancing
actions
countries
annual
in
the
types of
sold and tho
or
which
volume
he operates;
typical size of
or
sale; if credit was granted, a de¬
scription of the terms and credit
Tne
$875,000
experience;
cial
Caterpillar
report
a
the finan
on
or
ing*
statements for the last five years;
credit reports from the custom¬
ers'
bank including
information
Company of Peoria, 111.,
February of this year.
bank
assists
and
obtain
only
banks
because
and duration of
S.
who
facilities
credit
adequate amounts from
cial
U.
individuals
the
of
terms
our
banks
wnenever
Wnen
it
com¬
possiole
a
Bank
stated:
policy of the Bank to
participation of private
capital in its lending operations.
Exporters are expected to carry
their
own
account
portion of
their
a
credits
behalf.
foreign
a
the applicant must describe
political status and,; economic
purpose of the government entity
will
purchase
to
use
be
th
improve
eq
made
equipment and how this
"It is the
obtain the
in
to
or
the
which
able
ex¬
line,
ment; the
for
and
government entity
is to be financed under the credit
1954,
Export-Import
lines
sale made
government
In its recent report to Congress
for
the
period
July-December,
the
credit
income
and
perience.
commer¬
tne credits and
utilizes the facilities of
sheets
available
on
in
balance
the economy
:ip
use
will
of the im
an
The
curiiy
The
in
the
offer
in fi¬
foreign trans¬
underlying se-
foreigi
a
not
reason¬
Continued
capital
on
pays
4)
offer to sell nor a solicitation, of offers to buy
offering is made only by the Prospectus.
any
of these scculH.
Jf*"
275,464 Shares
Public Service
Company of Color aJC.
Common Stock
(510 Par
country
surate v/iih
volved.
uo
Value)
charges for foreign
cnanged for tne
not
Company's, outstanding Common Stock
are
being offered 4a
right
to subscribe at $38.50 per share for the above shares at the rate of one sh"'
for each ten shares of Common Stock held ot record on June 3, 1955.
tion Warrants will
20, 1955.
Subscrip¬
expire at 3:30 P.M., Eastern Daviight Saving Time, on }c\
:
r,
' .y',.-"
...
are
the risk and w°rk in¬
Bank
Holders of the
The several Underwriters have
agreed to form and manage a group of securid.:
dealers for the purpose of obtaining subscriptions
through the exercise of Sub
scription Warrants by original holders thereof and, subject to certain conditio..,
to purchase
any unsubscribed shares and, both during and following the subscriy
tion period, may offer shares of Common Stock as set forth in the
Prospect*;^
Calls, liuiWl til stall ain f tne
in
increase
J
overhead
:
•
Copies of the Prospectus
Export-Import
Bank's
writers
may
be obtained from
any
only in Slates in which such underwriters
dealers in securities and in which the
Prospectus
of the several under¬
qualified to act as \
are
may
legally be distributed.
The credit corrpention by
o'h°r
be met
utilizing the loan¬
ing facilities of American com¬
mercial banks.
However, consid¬
erable progress has been male in
providing Ion er term credit for
our export trade.
The Exg^rt-Im¬
port
Banx
of Washington
an¬
nations
obviously cannot
present
¬
porting country; any special rev¬
or
appropriations
which
will provide for amortization cf
the debt; and if the purchj.dny
enues
extended
Private
This advertisement is neither
»
of th«>
ex¬
rlsKs
does
long-term
with
¬
standing of the purchaser giv¬
Tractor
I
greater than in domestic tiade and
me compen.ation is net commen¬
at
-
customer, which
description ami
brief history of the
foreign pur¬
chaser, his business organization,
must
because of currency inconvertibil¬
first
furnish
to
each dealer
on
risks; that is, pro¬
against loss resuit.ng t.cm
or
details about his export
as
tains abroad.. The exporter is also
of political
exporter
operation?:,
standing and responsibility
well
sales and facilities which he main
existing
facility offered by the
Export-import Bank is tne insur¬
the
of
pur¬
Export-Import Eank
tion about his business
Another
occurrences
use
the
porter must furnish full informa¬
country of the prospective
buyer at the time of the request.
tection
choosing.
the
obtain a credit line from
Export-Import Bank the ex¬
the
the
ance
importers
own
To
ing country, or are not of a pro¬
ductive character, is determined
in
relationships
and
Requirements of Exporter
capital
which assist¬
the facts
the
Their
Act."
make a direct contribution to
the dollar position of tne
import¬
basis of
Bank.
exporters
of
acM
admin*
regard
is of
in maintaining
addition, it curta Is
pose
not
the
this
banks of their
casc-
the sale of capital goods which do
on
in
public funds to achieve
by-case basis requests lor financ¬
ing on medium or long terms tne
goods.
au¬
authorized by
commercial
between
In
credits
importance
usual
of
goods
has
extension and
of
Export-Import
great
credit
The
consider
consequently
reasonable
a
business
Ilarriman Ripley & Co.
Baker, Watts & Co.
to
capital
t; ansact.ons whijh are sale
offer
substantial
Merrill Lynch, Pierce, Fenner & Beane
the
trans¬
of
it
NEW ISSUE
Activities
Legg & Company
productive
Lnes
Export-Import
loans
I
porter who would undertake any
Incorporated
John C.
establish
exporters of
saie
the
istration
Principal among such new pro¬
was
tne
adoption ox" a
a
effect
assistance
to
either
agreement
export credit terms.
Our
know
ptiat
Corporation
Alex. Brown & Sons
sug-
countries, banks are
partially or fully controlled by
their
governments.
American
banking is fortunately a private
enterprise and as such is guided
by the principle of profit incen¬
tive aria the safety of tne inves.-
costs.
BIyth & Co., Inc.
A
the lending institutions of
business have
The First Boston
tive in
cedures
p^an
the
many
these
dealers in securities and in which the
financing of inuiviaual
funds,
account or with tno
of
increasingly
as¬
and
actions.
•
are
share for the above shares
shares of Common Stock held of record
transaction,
international
an
among
select
„share for each
tne
was made by a leading
banker that ihere should
gestion
ment.
I
outstanding Common Stock
In the fail
up
the
of
In
-
Baltimore Gas and Electric Company
Holders of the Company's
among
The German Central Bank
think it is
."
or
exporters
develop procedures to facilitate
the industrial nations for the limi¬
•
:
575,856 Shares
ra-
the terms of redis¬
count facilities for the special 6C0
million marks export credit fund
by requiring the exporter to carry
be
an
to
extension
S.
mercial
German
This advertisement is neither
the
dissatisfaction
tightened
Japanese
manufacturers' began to offer in-
1955.
and
with this prote-tion
Even
is
credit.
a
foreign
for
and
risKS
against the "cold war" in export
pro¬
nations
tne
U.
advance
own
"United States commercial
banks and other financial institu-'
tions have been
by tneir goveinments
the factors wnich led tne Bank
to
to
thorized.
provided
expedite
equity
secured
Commercial Banks
private financial insti-
guaranty
Bank, to
capacity; and the inc. easing
competition
by
foreign
manufacturers based on assistance
The
of
last year,
the Association of
German Bankers issued a warning
buyers'
tutions
credit
to
is
States
other
tor their
of
for the extension of the loans.
some
situation has arisen in inter¬
new
Mr.
and
the
and
piant
are
loans,
encourages
United
manu-
of expansion
banks.
Exporters at
the advent of
in-?
from
a
export markets to U. b.
companies
Risks
the
conditions
the form of
or
whenever available and
approoriate in connection
witn the Bank's
activities.
The Bank
Bank
in
discount policies of their Central
or-
Disadvantage
V With
of
cannot
of
investment
in
given country.
there*
Strong
before
the. Institute on International Trade, Uni¬
versity of Illinois, Monticello, III., June
7,
special remittance taxes
increase
banks.
by
foreign
exregulations of
surance
from
of
commercial
^An
con-
The long-term export credit extended by foreign banks is made
possible througa government in¬
restrictions,
to
lactuiers because
Foreign Governments Insure
,
Umted
from any other encumberances.
private capital
which amounted to $460 million
during 1954, was attributed to an
expansion in foreign lending by
our
pe-
freedom from transfer
edit
/
;
tneir
buyers, payable upon ship¬
ment.
They impose these conditions
notwithstanding
the
stability of the American dollar, the
facilities for normal international
transactions.
since
immobilize
cannot
change
..A
...
credit
them
to
in¬
fluctuations and changing regula¬
tions.
It is of course impossible
reasonable
_
com¬
Tne
pai iicipaticn in
buyers' marxet
abroad; the increasing importance
ance
need
iong-terrn
recourse
States
our
and
and
credit
exporters
our
■
turers,
State
tne buyer in the foreign country
rather than its customer, y The
bariK wouiu forego me security of
the dollar and the protection of
American laws; it wouid be sub¬
ject to the hazards of exchange
majority of for¬
eign exporters require irrevocable
satisfied
the cerdit needs of
Ja^ tm
extend
;'
a
aie
riods.
Our banks cannot assist
them. A commercial bank waiving recourse would be financing
to
to
meet
they
preponderant
Strong
a. m.
by
binxs
in
ciation, exchange restrictions and ditions, ..long-term
,
lent
working capital for extended
of
-vf°r
j
long-term
funds
expressed
without
was
*»'Aqn
willing
<**«
banks
*
or
commercial
termediate
foreign customers
attractive opportunities for placing funds- in
foreign money markets.
It
is
significant
that
while
the
also
petition
fi¬
*
under
rule do not
a
demand,
To
and in part by more
transactions
sellers'
continues
in¬
exyas on
offer
to
exporters
a
lor
is
occasioned
in part' by tne need of Ame ican
intricate
as
markets.
ternational trade
sistance
and it has been tne
policy of pruaent bank manage¬
ment to piotect Ls depositors
by
liquidity of us funds, ihis poLcy
equiva¬
or
established
stated tnat the recent shut
on
year's
last
a
new
policy last year
designed to assist U. S. exporters
of
capital goods to retain tneir
deposits of their cus¬
tomers, whLxi can be withdrawn
and the remaining $100
medium
term
credits
lent collateral.
ex¬
exporters
primarily
represented short-te.m
fully secured by
$ 2 5 2
serviced
million
nancing
million,
1946
new
serious
Federal Banking legislation.
crease
I
a
American
The
American
foreign buyers.
American
Tins
terms.
mtermecnace
involved.
extend long-term credit to
to
exporters
draft
capital goods.
extend
"Edge
as an
sijhi
on
ioreign creait because of the need
tor liquidity and the greater risks
Act Corporation," for the purpose of making it possible for
.•>
macninery
created
American banks
•
from currency inconvertibility, war or revolution, etc. Details
formation of the American Overseas Finance Corporation, or¬
1
haj
proplern. for
;
against political ^ok of nonpayment arising
exporter
an
of
manuiaaurfcis
selling
credit
snore
situaaon
attention, however, to the assistance being granted exporters
by the Export-Import Bank and cites the bank's first guarantee
'
sale
a
American
been
nounced
.
Long-term export credit extended by foreign banks, he
is made possible through government insurance of the
risks and the rediscount
»
have
or
Japanese, German and other manufac-
turers.
says,
made
been
in
wrncii
,?
by exporters of capital goods in order for
them to compete with
in¬
these
oi
Japanese, German and otner
European manmactuiers to Oiftr
five
year
or
longer repayment
unable to supply the intermediate and long-
term credit needed
sales
a
tor
Ciiicago, 111.
are
has
as
extension
spective governments, in the form
of * credit
insurance, guarantees
and subsidies.
It is not unusual
Vice-President, American National Bank & Trust Co.,
American banks, because of the
The
possijle
through the assistance of tneir re¬
By A. M. STRONG*
points out,
buyers
centive.
terms
15
by
The First Boston Corporation
Boettcher and Company
BIyth & Co., Inc.
Smith, Barney &
Bosworth, Sullivan & Company. Inc.,
16
(2643)
Thg Commercial and Financial Chronicle
\
the stock averages,
accounting
in part for the less enthusias¬
THE MARKET... AND YOU
tic action
&
Pacific,
STREETE
By WALLACE
Rail
and
along with the
pre¬
By LEO FISHMAN*
Katy
—
Professor of Economics and
able to make appear¬
on
the new highs list
—were
Industrials made their
long- present shares last year, now
ances
awaited new high for all time is triple that price. Anaconda
which
this week, forging to the best kept the coppers in the swim
is
a
feat that few of the
a n
t
Steels Lead
Buying
The spark that turned the
trick
the
buying in the steels
companies. American Motors
Ford labor dispute
and Studebaker-Packard were
was settled
peacefully, to in¬
quick to reflect this caution
dicate that the heavy auto
with appearances on the lists
makers' orders
would keep
of new low prices for the
flowing to the steel mills.
year. Even the listed issues
Bethlehem Steel was a leader,
of the Big Three had their
carving out some of the better
problems, and Chrysler was
multi-point gains for a day's
quick to subside after a brief
work, but it had plenty of celebration over the labor
company. U. S. Steel was in
peace. General Motors main¬
good form although it, too, tained fair
buoyancy even
has a sizable problem of its
though it was the next bar¬
own
labor negotiations at
gaining target once the Ford
hand. Minimizing the labor
pattern had been set.
implications was the fact that
*
*
*
in
contracts
that
field
istic forecast
A
will
parties
Chemicals
of
put
a
on
10
long
a
a
Consider
the
Other
metal
shares
quick to join the steels
and
runup
none
spectacular
Metals.
were
on
was
than
This
by
taken of the issue
the number
more
of
Reynolds which,
by
a
3%
the
good
students
market
of
because
view
cautious
without
yield
added
issue, available
"sweetening" by the com¬
pany, would leave it in what
might be classed a sub-stand¬
join that somewhat exclusive ard
yield bracket.
shade above $50 last
year,
rushed across the $200 line to
at
a
club. Of the
that
sues
common
trade
regularity,
there
stock is¬
with
some
were
Aircrafts
only
five others in the "200 club"
including* duPont which just
seemed
aircrafts
The
least
Strengthen
temporarily
to
at
have
the
guarded
%
•f
Whirl in Aluminums
ment
Aluminum shares
were
given
a
of
mount
America
good
over
generally
good whirl with
Kaiser Aluminum and Alumi¬
num
gains
able
recommenda¬
buy
tions from
to
running
several points at a
clip. Alcoa,
particularly, has been steadily
working into historically high
ground. The present price tag
some
1960
of
to
swings as the
faction unlimbered
1954,
last
big arguments. Some of its
abrupt declines were drastic
data
the
for
year
which
its
—
Commonwealth
and
Con¬
official
are
able,
avail¬
Gross
National
Product,
is the
Leo
Fishman
sum
to¬
tal of all goods
and
;
:
that
services
produced for the market economy,
both
for
the
level
the
the
public
of
private
$291
sector
and
from a
billion in terms of
sector,
rose
present price level to a level
uct
during the past five years, it
is
probably not much more than
we
can
reasonably
expect
to
achieve
during the next five years
*A
West
talk
by
Virginia
Mill,
Jackson's
*
Dr. Fishman before the
Congress of Agriculture,
W. Va., May 18, 1955.
being anything spec¬
s|<
Defense issues
weren't
were
here
overly
able
to
generally
popular and
show
an
issue
kept
years
it
even
when the
mar¬
one
of
the
ignored
stocks until it broke out of
narrow
range
❖
and there in the minus
column
of disinterest that
Oils
last
*
offered
a
year.
*
little
the
productivity.
by
his
been
reduced
from
that
will have
40
hours
to
37.5
hours, and that the level of
unemployment
will
rise to
3.5
million.
their
If
not
for
estimates
of
these
factors,
Gross National
Product for 1960 would have been
higher.
even
At
'
70
time when there
a
million
close
are
employed, 3.5
unemployed do not con¬
million
stitute
a
persons
problem. In fact,
is probably close to the
serous
that figure
irreducible minimum necessary to
provide
ments
for
of
the
labor
seasonal
require¬
industries
and
for other contingencies.
GNP
in
1965
In view of developments of the
recent
past
forecast
and
for
reasonable
to
basis
1960
of
which
National Product
and
1965.
rough
some
presuppose
employment,
in
the
rate
moderate, in¬
more
Gross
between
Dewhurst
would seem
expect a further,
but somewhat
in
the
1960, it
a
slowng
a
in
hours
National
$465
does
by
Product
the
ocqur,
per
that
billion.
week,
1965
will
If
be
this
rise
of
this
citizens
country will experience
substantial
man-
further
a
work
possible
the
down
in
productivity, and
seems
On
calculations
further rise
increase
of
Gross
Sperry Corp.-Remingcontinued to
make up a good share of the
trading with sympathetic
price moves by the; others
when any one of the three
ways of trading in the situa-^
tion built up good price ac¬
tion. Remington Rand was
able to forge out some new
peaks on its own hook with
both the
old Sperry Corp.
man-
associates anticipate
about
The
and
Mr. Dewhurst
1960 the workweek
Merger
ton Rand group
1950
made
Short-Sellers Hooked By
a
further
improvement in their
material well-being.
According
results of
Board
of
a
Reserve
eral
tion -.fwith
preliminary
the
to
made
survey
Governors
of
System
by
the
in
the
Fed¬
coopera¬
the
Survey Research
University of Michi¬
gan, there was a marked tendency
Center of the
for
units
consumer
the
income
and 1955.
scale
to
move
between
up ;
1950
Their findings indicate,
for example, that although in 1950
as much as 84%
of the consumer
units had
than
the
money
$5,000, in
incomes of less
1955 only 68%
units
consumer
had
incomes of less than
of
money
this amount.
highs lists. Sperry-Rand was
the
most
active
Closing
of the three
after
topping the list in ac¬
tivity each day last week after
it came to listing, and resum¬
an appearance
at the head
of the list this week after
one
generally was making way of sustained moves with day's lapse. It all had the ap¬
pearance of causing much dis¬
progress. Newport News Ship
only Standard of Ohio making tress for the
on
the shares is some 150% and Bath Iron Works were
unlucky short
any threats at joining the new sellers in any of the issues.
higher than the best posting among the issues prominent
highs. Sunray Mid-Continent
achieved by the old stock be¬ in ignoring strength.
[The views expressed in this
*
*
was one of the more active in
*
fore the 2-for-l split of 1953.
article do not necessarily at any
the group but, while its price time coincide with those of the
Kaiser, available at the equiv¬
The rails that made
prog¬
Chronicle. They are presented as
alent of less than $10 for the ress weren't those used in
action was buoyant, it was far those of the author only.]
ket
be
continued increase in
a
and
it
ing
in
and
hour
decline
#
Sj:
The anticipated
in Gross Na¬
between
possible by a
rise in employment of 10 million,
hour
tacular.
vorite with fine
some
*
Product
will
Fund
billion
in
short of
Century
billion in terms
$414
$57
crease
of the houses
them.
*
of
riod from 1949
wider
period
recently
Gross National
a
rise
tional
utility section showed
promise of reforming
from
its
definitely laggard
ways and, like the rails, did
even less to
encourage the in¬
dustrial breakthrough to new
high ground. High-priced Peo¬
ples Gas,
along with the
weight of its rights offering,
seemed far more ready to test
its year's low than to attempt
anything spectacular in the
way of strength. The Edisons
of
of present prices.
the
impartiality. shares and those that will be
Nevertheless, the issue is in left after the merger, Sperrywhich helped improve senti¬
historically high ground after Rand, both joining it in the
$
Twentieth
alone.
In
the
1 u m e, "America's
Resources," J. Fred¬
Product
of
'
a
v o
and
the
five years pe¬
The
to
erick Dewhurst and his associates
pa y-a s-y o u-s e e
video.
Zenith was subjected to some
little
-
«oa-
years
In
past five years
of
nudged into membership re¬ gotten over the fears and dis¬ solidated—were backing and
cently, then reacted, but was interest that made them a dis¬ filling for the most. United
back
in
the
group
solidly couraging group last week. Gas Corp. has built up in a
again this week. Reynolds- Boeing was able to recover a nearly half a year's trading a
at times
and range of only around four
gains ran in big doses of up bit smartly
to around a dozen points at North American Aviation was
points and rested at the low.
a
clip. U. S. Foil, which has one of the more buoyant is¬
:'fi
❖
*
'
large holdings of Reynolds sues. In fact, the plane stocks
Eastman Kodak took turns
and trades on the
junior mar¬ have been shaken out enough
ket, was able to keep pace to warrant some rather at being a casualty and a fa¬
fully.
Needs
that.
gains
by similar governmental
hearings over the feasibility
tempered
were
rather
a
during the five
at
rotating
Gains
time.
:}s
.
and
following
published
forecast for 1960
leadership the subscription television of $357 billion, an increase of
candidates ready to
$66 billion. This notable increase
debate, a somewhat logical
wages, which minimizes the
in the physical quantity of pro¬
take over the leadership when
labor problem for them. U. S.
development after its recent duction was made possible by a
other
issues
tired.
DuPont
good strength. Motorola was rise in employment accompanied
Steel, in fact, was prominent
achieved some of the better in action with some
as
the member of its group
repeated by new increases in productivity
per man hour.
gains per session, running as new highs on good gains.
able to post new
highs most
However impressive the rise in
much as several points at a
*
*
*
easily.
the level of Gross National Prod¬
*
*
:■#%'
economic
tion
the
conducive
impressive
with fresh
s!s
conditions
maintain
period is not
year
in the life of
sec¬
anti-pay
absence of
healthy--economy.
was
and recovery was somewhat
limp, coupled with the purely
technical situation of going
ex-dividend early in the week,
all of which kept the stock a
good dozen and a half points
under its year's best. Radio
good Corp. ran into trouble despite
don't
expire this year but are only
show
opened for discussion of
maintenance of peace and
on
nation, yet it
is a period long enough for great
economic changes to take place.
of interest
measure
*
deflationary developments, also confidence that leaders of both
political
A
spurred in the television
*,
Says continued population
rise will increase the demand for farm products. Bases optfm-
#
Issues
.r
•:
rural non-farm and urban families.
one
better-heeled
the
than
bill
*
Pay-As-You-See and TV
was
once
particularly for
the
independents who will
have a harder time footing the
lj
Twentieth
the
Century Fund's 1960 forecast, Dr. Fishman anticipates a Gross
National Product of $465 btlfton by 1965. Looks for gradual
closing of the gap in money income distribution of rural farm,
dour,
were
the projections: contained in
on
d semi-annual wage
e e
*
❖
''V
;■
.:
Elaborating
"average" issues attempted.
standing in history. It was by making the new highs list. The
cautious attitude toward
❖
*
*
slightly by the trouble
the carriers could be traced
the rails had posting a new
Motors Subside
in
part to the hearings on
Motors that had a good deal
closing high, but was enough
freight rates underway this
to
confirm, although real to do with starting the up¬
week
before
the
Interstate
early, the existence of a "sum¬ turn, had a trying time after
Commerce Commission and
mer
rally" which has come to a brief fling. Some of the im¬
the tales of woes being recited
be one of the more reliable
plications of at least a guar- before that
body.
seasonal market movements.
❖
Finance,
University -
West Virginia
•••;/
dulled
❖
Thursday, June 9, 1955
.
Economy
During the Next Ten Years
Missouri
ferred of Mo-kan-Tex
.
The American
by this index. Texas
Pacific
.
Income
Dewhurst
Mr.
lieves that the
accounted
for
the
income
and
1955
the
and
1960.
tributions
farm
and
included
them
for
felt
to
make
1955
income
farm
up
1950
between
urban,
rural
in
a
between
Separate
reveal
towards
movement
continue
their influence
be¬
forces which
same
scale
will
Gap
apparently
rural
dis¬
non-
families
his
study.
the
same
All
are
of
tendency
general rise in income
levels.
The
marked
in
the
increase
case
is
most
of rural farm
families, who in 1950 were more
Continued
on
page
41
\
Volume 181
Number 5436
.
The Commercial and Financial Chronicle
.
.
(2649)
Public
Utility Securities
Rockland Light & Power Company
with
pany,
annual
nearly $19 million, is
ing
of
revenues
enjoy¬
rapid
now
earliest
and
of the
dis¬
ga^-Atquisi-
growth due to the opening up of
the New York
produced
new
unusually
of
Thruway and other
highways/ Because
30%
of
two
adjacent
bia Gas and Algonquin Gas Trans¬
I
wonder
served by the system extend
the
southeast
in
Bergen
mission, and also recently entered
far
greater
into
revolution
subsidiaries.
from
County
The
(New Jersey)
about
six
miles
at
point
a
north
of
the
George Washington Bridge, north¬
erly along the west banK or me.
Hudson River to
point
a
Bear Mountain Bridge.
Hudson,
York
the
State
From the
in
territory
extends
the
near
New
westward
to
company
a
for
contract
additional
an
of supply from Tennessee
Transmission, making three
of natural gas supply.
The company originally obtain¬
ed natural gas in 1935 when Co¬
source
under
if
realize that
you
social
and
your
sia.
This
rev
;
(in its first expansion
its pipe line
close to New York City. Hence it
had
of
put
1
extended
Orange
The
sey
area served by the New Jer¬
subsidiary, Rockland Electric
Company, extends northwestward
from
the
the
Hudson
northern
County and
River
covering
portion
of
small
area
corner
of
a
northwestern
Bergen
in
the
Sussex
to
years
convert
Take
to
customers
gas
for
gas
are
now
space-heating,
increases
and
percentage
River, and extending from Matamoras to Milford.
Altogether the
territory covers about 800 square
highly indus¬
trialized, important new plants
are now coming into the area. The
miles.
company
Rockland
Light & Power Com¬
electric
renders
service in
County
and
gas
nearly all of Rockland
in parts of Orange
and
At
the
every
time
present
new
area
the
has
Rockland
a
been
not
expects
to
sell
over
$1
million
worth of electricity and
annually to service the huge
gas
new
ing
Ford assembly plant now be¬
completed
at Mahwah, New
U. S. Gypsum is building
big plant at Grassy Point on the
County,
with
electric
service
(only) in Sullivan County. Rock¬
Jersey.
land
Hudson,
which
stantial
amount
Electric
electric
renders
service, and Pike County Light &
Power serves both electricity and
gas in Matamoras and electricity
in
a
System
will use a sub¬
of electricity.
capitalization
March 31
was
as
of
as
follows:
To
A
vonns
will
hnd
the
verses
Thruway
section
eastern
company's
few
a
miles
the
company's
The
road
of
the
year
and connections
be
south
in
office
will
tra¬
crossing the Hud¬
area,
River
son
York
Nyack.
this
are now
be¬
had
44
up.
15
tho
the
59
$40
13
19
28
$68
and the New England ThruThus the area will have di¬
rect access to all major centers in
the east over hand-speed high¬
ways.
The Palisades Interstate
Parkway, to be completed in 1956,
also
crosses
the eastern part of the
Completion
territory.
roads should afford
ulus
the
to
of
these
future stim¬
a
company's
business,
into an
area
with
a
favorable
climate,
abundance of water, and Undevel¬
transportation
providing
suitable for homes,
enterprises, and fac¬
land
oped
commercial
The
tories.
Railroad
Erie
and
West Shore Railroad provide rail
facilities.
-
ing substantial generating capac¬
ity to prepare for this growth. In
1948 it had only four hydro plants
and one small steam plant, with
total capability of 36,000 kw. The
Tomkins
Cove
plant was built,
with one generator of 24,000 kw.
steam capacity completed in 1949
a
similar
has started
000
A
kw.
plant
is
in
one
on
a
new
also
1951.
will have total capability of
000
kw.
able
or
as
to
nearly
in
1948.
sell
power
ities until its
the
1961.
is
forecast
times
as
now
be
will
to
other
util¬
1955
for
of
his
gained 17%
No earnings
has been
issued
by the management, but earnings
expected to compare favor¬
ably with last year's 80c
per
share.
Rockland's
earnings on
the year-end net plant account in
1953-54 were only 4% (as report¬
ed by Standard & Poor's)
$4,027.
„
with
part of
a
provement.
With no equity fi¬
nancing apparently necessary for
some time
(since the construction
program can now taper off) share
earnings
expected
are
anticipated
the
rapid
to
reflect
major
power
pool
in New York State.
Rockland
has
been
The
stock
is
over-counter
pays
is
$5,330.
.
/
of
the
to
f K
keep
/-\-n
us
prosper-
n
™s' then' is
Oliver J. Troster
Singer
-KT
AM
XT
&
Co.,
/"I
1
*
(Troster,
Trinity Place,
74
J
_
\
'
*'
Poorly
society,
and
weaUh
few
with
little
called
extremely
Importance
of
Advertising
families
both
.
+,
in
one
growth
on
the
Colonel
These securities
But> that
war-
was
over
rolling
u«
nnw
LOS ANGELES^ C^a
Tegeler
in
a] *eeps us rolll"S, now in
Company
&
board
—
these
had
a
psychological
factors
K
too.
spend money for
plants,
and
new
new
stores,
machinery,
,
Wis.
735
n0rth
Bache
to.,
&
Water
business
Company.
we
matter
of record only.
50,000 Shares
Corporation
(A Michigan Corporation)
Johnston Build¬
ing.
Common Stock
With Dean Witter Co.
(Special
to
PORTLAND,
Witter &
($1.00 Par Value)
The Financial Chronicle)
Underdahl
is
Ore.—Kenneth T.
now
with
Dean
Co., Equitable Building.
GOLKIN
6-
CO-
With Joe McAlister Co.
GREENVILLE,
Alister
Jr.
is
S. C.—Hugh V.
with
Joe
Mc¬
Co., 318 East Coffee Street.
61
Broadway
Fremont
Street,
for
in
Mr.
the
many
years, was formerly with Marshall
Willis has been added to the staff
of
—
Breitengross, who has been
placed privately for investment through the undersigned. They
Stubnitz Greene Spring
.
Breitengross has become associated with Adolph G. Thorsen,
new
announcement appears as a
Norman,
q
they investment
When
M.
(special to the financial chronicle)
prosperity.
optimistic,
.
MILWAUKEE,
Businessmen and manufacturers
currently quoted
19V2
and
Chronicle)
been
directors
Now With Adolph Thorsen
great deal to do with
S°°d business. Newspaper advertising has created a climate of
confidence in which it has been
possible lor us to consume our
way
Leslie
cording to
Bresident.
they feel about the future> whether
they have confidence in Washing-
are
were
has
of
Consumer confidence! How eiec£a to me ooaia oi directors
f
, about their ]o
i
t to
of
Precision Radiation
InstruPe0Pie *eei about tneir local, stat~
t
t
f Lo
Angeles
acand national governments, how nienis, inc., oi i^us /yigeies, ac
,
around
to The Financial
the
get
D o n a i a Muraocn Oi uempsey-
by 1950.
1955?
offered for sale and this
CHARLOTTE, N. C.—Laurie H.
.
Elected Director
war
demand Yas. resP01}slble for the
sPuld
business ri8ht after the
in
Joins Bache Staff
(Special
i
-
of the
admit that pent-up
ton
And the average
not
1 1
.
three-for-one treatment - their
pictures taken, particulars on the
Polaroid
Corporation
and
the
latest quotation on the stock.
persons.
Certainly I would be
have
70%
a
city family today earns over $6,000
are
P
.
revolution New York City) is following his
a
60c to yield about 3%.
Walker,
one
and
Today?
living
Oliver J. Troster
Col.
area.
(Special to The Financial Chronicle)
System
a
and
cai,
$4,000. Back in
family earned
..
those
$10,000.
over
there is
Central Hudson Gas
Electric, the Rockland
now
not
not
ear
including
family,
and
work
Fewer
mark^ base *n itself
middle-class
men
Today, the average for the
...
farmers
cities
over
average
American
at
years.
we
keens
but with
child, a
a
Is Benefiting
the
been
ample regulatory "room" for im¬
business absorbs
capacity, possibly in
Through its new intercon¬
husibusi
Tnne
June
increase in the number of
1944
same
2 W3gG e?rners 80 that we todaY Land camera. He is also expert
have nearly achieved a one-class, in trading the stock. Those that
not
college
Since 1947 there has been
with incomes
apply to
the
more
and
ana
child
a
a
,
1 C
classmates
this
tnis
diploma,
a
has
help
he
said
$4,000-a-year job!
Who
1955
are
Since
eood
good
were
extra
nection
&
own
five
It
172,-
quarter
revenues
under
construction,
using New York City's drinking
water (en route to the City) to
generate electricity. With all these
new units completed the
company
much
first
and net income 18%.
Work
third unit of 70,18,000 kw. hydro
the
Rockland's
the
The company has been develop¬
and
For
just
Click! Click!
e
month to start
nut
out
start
start
wife, nprbins
perhaps
a
Turnpike, the Garden State Park¬
way.
and
administration
will
will
la Please...
IncSaTefthTmldd cfasffroS old «me(hobbywith his Polaroid
?,Uahk.ingPT ^
inpcreased the middle-class group spot pictures
com nan v
He wanted
of
u
should
June has
nrnohpr ol fpehninl
number nf tecnnicai
with
100
Equity
ing planned with the New Jersey
way,
the
lately?
getting offers of from $325
It is nothing short of fantastic
whn
who
'
earn
have broadened
?ur mar^e!: buse with a greatly
uicreased number of potential
"uyers of goods and services. This
interviews
they
than their $300 per
10
9
Stock
because
some
con"^ t0 ^ prosperity
startling of
whopping
figures
dozen
*n s^ort,
their job offer. Upon
paying enough.
$30
Debs.__
past
A11C
One
hedged
he
because
Stock
Common
do
esneOallv
especially
an
not
Character, education
advertising
are
the
basic
<
were
Total Long Term Debt
Preferred
and
doing
inh
nf
nffere/ him an^
htrn^
ness
of
completed
Fund
these
expect to
?his
graduate
inquiry,
world.
and
economic
that
pr0Cess
such
B°bson Institute senior
had accepted
standard of living almost un¬
most other parts of
a
under
cjty families make
been
offered
%
Mortgage Bonds
Sinking
nome
places
nnmher
a
are
makes
opener is found in
leveling
eye
great
that is yours,
car
sever™! offers
and
we
that
But this is not all of the
story.
ous
who
these
living
j?. yeais The real
you
children to college?
your
that
revolution
roof, not necessarily to individuals,
appliances
yours? To be able to send
are
Millions
New
the
the
to
the household
own
that
Milford.
The
to
that
families
did
ever
have the kind of
go
1958.
revolution
a
to
a? y°u P1(JD~ and fewer families are making
r!av? Did ,i°n over $10'000- Only 9.8% of our
aay.
you
Roger W. Babson
to
of,
addition
capacity between
Yes, it is a tre¬
believable to
of all
mind
has
expect to own
a
our
As little
■■
will
group, earn less than $3,000. Only
15% of the city families are today
found in this group. But
keep in
to
ened
p p
ago
things you've
service
a
business
10%-12%
and
part
families, including the
traditionally
low
farm-income
look
a
what
you.
year.
space-
heating business is increasing at
record-breaking rate.
While
h
using
this
County, New Jersey. The other
subsidiary, Pike County Light &
Power, serves Pike County, Penn¬
sylvania, being bordered on the
north and east by the Delaware
pany
at
V"
and to build up spaceheating. Its gas rates are by far
the
lowest
in
the
Metropolitan
area, and it can sell gas for spaceheating at a price substantially
lower than equivalent coal and
oil prices.
Consequently, 56% of
its
Russia
that
30%
a
shame.
natural gas
County and parts of
and Sullivan Counties.
20
Rusis
most
fact
the
that
between $5,000 and $i0,000 a
year.
At the other end of the scale,
only
should
lumbia Gas
1956
mendous
44% of all non-farm families
olution
that
in
But
is
feel
their productive
$10,090 annually.
over
busi¬
sufficiently good to necessitate
further
a
the fact that
years
all
taking place right
nose than has taken
place
has
be
Notes that since
annually!
a
economic
is
Gas
program)
facturers
Terms real "eye-opener" in economic
sources
the Delaware River, including all
Rockland
Russia to shame."
underway in past dozen
process
And
1954. When projecting
plans into the future, most manu¬
family income in
social and economic revolu¬
only 9.8% of city families make
now
buys gas under
long-term contracts from Colum¬
areas
a
good.
to
spend about
5%
these things in 1955 than
it spent in
a
$5,000 and $10,000.
leveling
The
revenues.
of operations in three states it has
express
on
70% increase in the number of families
with annual incomes of over $4,000 and that a
"whopping"
44% of all nonfarm families enjoy an income of between
Co. in 1952 added substantially to
the gas business, which in 1954
period
a
constituting
as
1947 there has been
RocklandTras--'
former
decade
tion here that "should put
successful
most
tributors of natural
tion
more
are
plans
By ROGER W. BABSON
the past
Rockland Light & Power Com¬
Family Income
times
ness
Mr. Babson describes the sharp increase in
By OWEN ELY
.
know
The Rise in
17
New York 6,
N. Y.
18
The Commercial and Financial Chronicle
(2650)
Trust
Farmers
York
NEW
OFFICERS, ETC.
Bankers
and
lvlSVISED
the
Currency in Washington, has
approved the bank's application
for
offices to
be
opened in
Plains.
L.
Donald
and
Ycrk,
New
Guaranty Trust Company of
Mervine as an
As sistant
staff
Trqasurer.
M r.
Curry
has
been
tion in
with
1947
Polk
Davis
d
r
a
11
w e
&
Sunderland
Kiendl.
Pension
M
Noyes
r.
Fifth
t y
i n
William
i g h t
(Her
e
years5
service
1
c
•
Ex-
Corn
Earlier he
was with Yokohama Specie Bank,
]btd
in
New
York, and with
i 'perry Corporation.
,
promotions and six new
Three
L'jpointments to the official staff
of
Bankers
Trust Company of
) rew
York, were announced on
June
Sloan Colt, Presi¬
Elevated to
the post of
7
S.
by
dent.
Vice-Presidents
Assistant
Arthur
formerly
Jr.,
Griffin,
B.
were
assigned
to the company's Park Avenue
branch, and E. G. Grimm, for¬
merly Assistant Treasurer, who is
With
the
company's
Letter of
Credit Division. Promoted to the
i
Treasurer,
Assistant
n
post of Assistant Manager of the
i' jondon branch was David Sum-
Auditor
formerly
3 ncrs.
First
The
the
of
been
bank
June 6
on
block
short
a
home which
Company
Maria Bergson
a
century the
the
well
of the
Walter Brotheras
textile industry.
be
veteran of 35 years with
City, is Vice-Presi¬
dent in charge. He has spent 23
ton,
a
The
bank
has
73
in Greater New York and 59 in 20
also
was
the
derwriters
ization
Comptroller
Mr. Griffin joined the
Company.
organization in 1951, Mr. Grimm
m 1916, and Mr. Summers in 1926.
In addition to the recent promo-
«
1'ons, four
were
elected. They
F. Ahlborn, with the
department
Robert
re
i
(
Assistant Treas¬
ocmpany's 'banking
new
the
in
urers
since 1932 and assigned
Operations; C. Barse Haff, with
ompany
lo
tie Southwest District of the Out-
Division, who began his
-association with Bankers Trust in
c
f-Town
1951; Frank Mauro, of the Metro¬
politan Division, who started with
Bankers Trust Company in 1950;
and William L. Rockholz, Amuse¬
Industries
ment
Mr.
Group.
Itockholz joined the staff in 1949.
Also appointed to new posts were
William
B. Kehrt, named Chief
Engineer of the Building Depart¬
ment and S. C. Wisely, appointed
Auditor
the
of
Office.
London
Mr. Kehrt joined the ocmpany in
1332 and Mr.
Wisely in 1934.
sj:
J.
the
board
Chase
President
Insurance
of
a
Compa¬
member
directors
Manhattan
Bank
of
of
of
The
New
York, John J. McCloy, Chairman,
announced
vrill
on
June 2.
succeed
is
hattan
Mr. DeWitt
Francis
Chairman
former
retiring
as
director.
of
W.
Cole,
Travelers,
Chase Man¬
a
Mr.
DeWitt
is
a
director of The Hartford National
Bank and Trust Company in Hart¬
ford, Conn., and is
Mechanics
He also is
ford
a
Savings
a
trustee of the
Bank
there.
director of two Hart¬
industrial
concerns,
HoloCorporation and
Veeder-Root, Inc. He is an active
Ivrome
Screw
participant in the direction
community institutions
many
Hartford.
with
York, has just completed
modeling
of
the
of
at
He has been associated
The
Travelers
Insurance
Companies since 1925.
■*v
*
re¬
branch office
its
in
the
Woolworth
Building.
This
completely modernized office on
Broadway in the City Hall area
offers its customers the latest
now
banking appointments.
Irving has
banking fa¬
maintained complete
cilities in the Woolworth Building
since it was opened in 1913. Hugh
M.
Marsh, Jr., Vice-President,
is
the Officer in Charge.
*
The
C.
In
Midland
Marine
of
W.
and
Trust
York,
of
2562,
Abell
the
bank
entered
graduate
of
Louisville
of
3
service
He
is
University
received
his
of
a
of
Mas¬
Univer¬
Office.
the
at
Mr.
Innes
joined the Trust Company in July
1935.
He
attended
New
York
University and Trinity College
(Hartford, Conn.). He is assigned
to the Branch Administration De¬
partment
with
headquarters
in
Brooklyn, N. Y.
On
June
Daniel I.
6
appointment of
Sargent
Assistant
an
as
Vogel,
Company
was
President
Flanigan.
is
a
sity
announced
and
came
February
1955.
Manufacturers
gent
was
ment
by
Mr.
Sargent
Brown
graduate of
Univer¬
to
the
Prior
bank
to
in
joining
Trust, Mr. Sar¬
associated with Manage¬
Advisory
Mr.
pany.
Services,
a
divi¬
signed
to
Sargent
the
will
bank's
be
as¬
Domestic
Department and his territory will
embrace
of
the
cf the Chase Manhattan Bank
of
Y.,
*
State
*
the
Marine
the
be¬
Trust
&
part
a
Trust
Midland
of
Pennsyl¬
Clark,
by
bank
will
consist
Associated
issue
in
June
of
reference
2,
to the
made
was
page
by
offering of 45,000 shares of the
capital stock, $z5 par, the follow¬
ing information pertinent to the
offering is contained in the cir¬
cular:
In
with
accordance
mendations
rectors
of
and
the
the
recom¬
of
Board
Di¬
author¬
ization by the special meeting of
shareholders held on May 23. 19hd
and
pursuant
to
of the
1948
elected
was
the
since
1929 and
Comptroller
title
added
President
Vice-
of
lyn, N. Y., announced
June
on
1,
meeting of the Board of
Trustees
of
"The
Dime,"
Mr.
Arthur J.
Miles
was
appointed
a
Assistant
Auditor.
the
entered
Dime"
in
Mr.
employ
1938.
has
He
Miles
"The
of
served
in
various capacities in the Flatbush
Branch and Main Office including
those
of
Teller,
Chief
and
been
Senior
Auditor
Supervisor.
member
a
He
the
of
has
Savings
Banks Auditors and Comptrollers
Forum since 1948 and has served
the
Cost
Conference
Analysis
and
Tax
of
that
Committees
570
Dime
lyn,
Club,
composed
the
of
close
on
May 23, 1955, thus
increasing the capital stock from
shares to 135,000 shares.
addition, the special meeting
125,000
In
of shareholders authorized
bank from
000
in¬
an
the
in
crease
shares.
capital stock of the
135,000 shares to 180,The 45,000 additional
shares of capital stock, $25 par, so
authorized are to be offered at
$91 per share to all shareholders,
pro
rata,
the basis of
on
one
N.
and
employees of
Savings Bank of Brook¬
Y.
has
elected
the
fol¬
dent; Hugh J. White, Vice-Presi¬
dent; Dolores A. Daken, Secretary
and
Howard W. Polock, Treasurer.
Dime Club was organized
The
1933
by
a
further
among
group
of employees
social
members
the
bank's
personnel.
*
for sales
Jersey.
regular meeting of the
Board of Directors of City Bank
*
Tyner, Jr.,
of National Bank
of
of
U.
S.
pro¬
bonds
war
Before
in
t h at" he
Lyncn, Pierce,
Beane, New York bro¬
kerage firm.
Fenner
Mr.
&
Canada
both
the
was
director
a
Passaic
of
and
Clifton
Chambers of Commerce.
He also
member
Passaic
was
a
of
the
Rotary Club, the public relations
ceiianiaefc
Bankers
*
Increased
by
$50,COO,
the
tional
County
Assn., etc.
*
of
Passaic
tne
or
Bank
*
stock
a
Little
of
dividend
Falls
Na¬
Little
Falls, N. J.,
May 24 enlarged its capital
from $150,000 to $200,000.
of
capital stock held of record
of
the
3,
1955
of
close
business
after giving
8%
stock
the
on
June
Issuance
additional
stock
.'hares
subject to
is
as
effect .to the
dividend.
45,000
capital
if.
Paul
M.
of
of
ap¬
i;.
*
Canada,
Bank & Trust Co. of
Clifton, N. J., died
a
June 3. He
on
58 years of age,
according to
Summit, N. J. staff correspond¬
ent
the
of
Newark
from
News,"
A
whose
*
merger of
Camden
Trust
&
J.,
National
sauken
if
the First
Bank
Co.
the
and
Bank
of
Penn¬
of
Penn¬
sauken, N. J., has been approved
by the directors of the two banks
according
"Inquirer"
to
the
of
banks
rocai
at
Philadelphia
May
will
29,
Further details
lows
which
the
in
operated
"Evening
account
we
quote:
pro-
June
given
28.
fol¬
as
"Inquirer":
National
will
be
the Penhsauken office
as
First
the
on
on
were
"Pennsauken
of
vote
meetings
Camden
National.
The
consolidation will
den
give First Cam¬
National five banking offices
in Camden and
surrounding
com¬
munities.
The
terms
of
the
consolidation
calls for exchange of 1V2 shares of
first Camden National stock for
each share of Pensauken National.
The merger will give First Cam¬
National Bank capital funds
den
aggregating
and
more
than $5,700,000
valuation
asset
loans
and
of
approxi¬
mately $1,500,000.
Edwin
T.
'
,
Ferran, President of
National, will become
Pennsauken
a
for
reserves
discounts
Vice-President of First Camden
National.
:
.
*
■
*
^
Jason L. Fenimore, Comptroller
of the Bryn Mawr Trust Company
of
Bryn Mawr, Pa., died
25.
He
on
May
57 years of age, it is
the
Philadelphia
was
learned
from
"Inquirer"; according to that
he became associated with
paper
the
trust
ago,
and before that he
three
company
years
was
Sec¬
retary
and
Treasurer
of
the
Wayne Title & Trust Company of
Wayne, Pa.
if.
The
if.
capital
National
of
Bank
of
if.
Blairsville
the
Blairsville, Pa.»
has been increased, as of May 25,
from $150,000 to $225,000 as a re¬
sult cf a stock dividend.
if
A
stock
$
t.
dividend
the
Empire
I
of
$250,000
the capital of
has served to double
National
Bank
of
C'arksburg, West Va., which as of
May 25 is announced as $500,000
compared
with
$250,000 previ¬
ously.
if
The
if
Peoples
Company
opened
of
this
if
Bank
&
Trust
Indianapolis,
Ind.„
week its remodeled
banking quarters, at the same ad¬
as heretofore, 130 East Mar¬
ket Street, invitations to the in¬
dress
spection of which
by the entire
were
force
of
extended
the
bank,,
directors, officers, department
managers and staff members.
Assistant- to
the President of the Passaic-Clifton National
was
*
:
if
The
if
Industrial
Detroit
if.
National
Bank-
of
Detroit, Mich., has by
the sale of
$250,000 of new stock,,
raised its capital from
$2,500,000
to $2,750,000, effective
May 26.
if
if
*
The capital of the First National
Bank of Camden, S. C., as of
his early life in
New England and moved to Sum¬
May
was enlarged to the extent of
$60,000, $50,COO of the increase
having been due to a stock divi¬
ago.
dend
associated with the
030
of
Assistant to the
the
addition
in
Born
Canada
15
Albany,
N.
Y.,
Mr.
spent
years
27,
of that
*
T.
the
mit
relationships
of
motion
New
addi¬
tional share for each three shares
of
lowing new officers for the com¬
ing year: Francis J. Kenna, Presi¬
in
at
record
officers
The Dime
to
of
proval of the Comptroller of tne
Currency.
organization.
The
Currency, 10,000 shares of
capital stock were distributed es
an
8% stock dividend to share¬
business
*
that at
approval by the Comptroller
holders
1952.
George C. Johnson, President of
The Dime Savings Bank of Brook¬
Ralph
At
Bank
Company and is presently
of
,
of Elmira,
subsequently
Elmira
the
came
*
the
Prince Street at Broadway branch,
which
sion of Price Waterhouse & Com¬
%
Manager
N.
Treasurer of Manufacturers Trust
vania.
Irving
National Bank
shares
three
stockholders of the
plans to increase the capital funds
of the
bank.
With
the present
re¬
head-
the
Second
on
the
of
New
June
on
He is assigned to the Secu¬
Main
the
corporation are
located.
Mr.
Brown
began his
banking career in 1922 with the
with
ters Degree at Columbia
bank's
where
served
worked for Merrill
will
stock.
approval
Trust
position he will
new
Buffalo
quarters
as
1950.
the
and
in
Innes
the
May
Midland
Marine
With his
side
in
Company
in
the
R.
by Horace C. Flanigan, President.
Mr.
of
formerly
Comptroller
was;
and
Company of Southern New York.
Frank
Gordon
announced
was
He
Vice-President
each
the
our
Company of Southern New York.
Assistant Secretaries of Manufac¬
turers
Corporation.
3,
value
the
underwriting are: Union Securi¬
ties Corporation, Adams & Hinck¬
ley, Nugent & Igoe, Julius A.
Rippel, Inc. and Parker & Weissenborn, Inc.
He was made Auditor in
*
#
appointment
Abell
sity.
if
DeWitt,
nies, has been elected
v/ho
Irving Trust Company of New
rity Analysis Department
Doyle
The Travelers
of
;
Co.
of
capital
'
Trust
Bankers
of
office
overseas
its
June
record
to
of 180,000 shares of $25 par
elected
was
of
Eank
purchase any
unsubscribed shares.
Giving ef¬
fect to the current issue, capital¬
at
Harold
Elmira
of
of
headed
&
Dodge
Com¬
that
announced
meeting
same
Brown
foreign countries.
Trust
Midland
with
two
State
Subscription warrants ex-,
pire on June 24. A group of un¬
with
merger
he
II
Treasury Dept. in charge of
added that the stockholders of the
*
is offering
for
share
new
of Central New York.
It
branches
its
of $150,000.
J.,
N.
Watertcwn,
held.
Port
and
Auburn
by
Marine
pany
with the Times Square of¬
years
$91 per
Y.
The President of
is Eugene C. Donovan.
followed
the
First National
fice.
in
War
was
N.
additional shares of its
stock of $25 p r value at
share on the bas s of one
45,000
capital
Acquisition of the bank by Ma¬
rine Midland Corporation would
important segement
an
N.
bank
the
Union Ma'ket
if
shareholders
It oper¬
$21,000,000.
new
at
capital cf $900,$750,0( 0 by a
National
The
Trust
Auburn
a
dividend
Newark,
subse¬
to
in charge of
During World
National
of
from
*
assets
of
offices
Byron,
has served
raised
000,
established in 1906
are
reported
was
total
excess
ates
For nearly half
branch
leading stage personalities
as
in
Associates and the
bank's architects.
its
and
designed by
was
The
stockholders.
off-beat color schemes feature the
new
subject
relations.
i',:
Bank
Mass., reports
banking authorities as well as ac¬
ceptance by the Auburn Trust
its previous location. Unusal
from
is
%
As of May 26, the
stock
and
constructed
be
State Tnruway.
stock
quent approval by the regulatory
quar¬
the site of the
on
Theatre,
Empire
new
'
has been approved by
Auburn Trust Company di¬
rectors
Branch;
into
moved
is the
at that time
to
National
plan
the
Also scheduled for
1.
#
of
capital
its
juncture of Tarrytown Road and
Route
9, adjacent
to the New
of¬
share
each
Ihe
the
renamed
opening
office
of the Auburn
Trust Company, of Auburn, N. Y.
Branch of
Eiank of New
Street
Broadway-40th
the
Corporation
for
for
capacity he
public
West¬
for
call
Thursday, June 9, 1955
.
on
exchange four shares of its
stock
of
Plans
14.
will be located on
opposite Cleveland
Ave.
Dec.
about
a
the
Square
National
has
York
ters
*
if
if.
Times
The
where he has been
Assistant Manager.
n
Midland
fers to
common
A*
*
*
.■
-
change Bann,
;
Marine
named
was
ap¬
num¬
St., is presently scheduled to open
the - acquisition of the
capital stock of the Auburn Trust
Company, Auburn, N. Y. whereby
Street, and
Promann
Central
plan, for
bank's branch in
Frankfurt/Main, Germany.
Cuiry
approved
Bank
to
office
which
fice,
ioiK
also
directors
offices
total
that
.
The West White Plains of¬
there.
payable
par
The
B.
Manager at the
Bernard F.
Chcmi-
with
H.
23rd
at
Avenue
common
value $50.00 per share,
payable July 15, to stockholders
of record June 17, 1955.
stock,
Assistant
an
the
on
corporation
1955. They also declared
the regular quarterly dividend of
50
cents per share on
the 4%
convertible cumulative preferred
the Garfield branch,
Treasurer at
IXervine joins
Guar
made
was
Carl
Officer.
Trust
the
ihe
Quarters have
Elwood Ave.,
Hawthorne, and complete bank¬
ing
facilities will be available
July 1, to stockholders of record
ment, Charles F. Blake was pro¬
moted to Custody Officer and El¬
bert Wilbert Jr. was appointed a
of
firm
lav/
W
the
share
a
of
to¬
been secured at 361
June 17,
Department, and Edward
T.
Phelps, Retirement Division,
who
were
appointed
Assistant
Treasurers. In the Trust Depart¬
as¬
cents
offices,
opening by July 1.
of
dividend
quarterly
National
chester
Hawthorne
8 the Board
stock
Real
Oisen,
T.
a
two
Tarrytown previously
of
ber
"
White
West
additional installa¬
an
proved will bring
meeting in New York on
of Directors of
Midland Corporation de¬
20
Estate
since
sociated
trust
Oddie
were
1
-
clared
bank, it was announced on June 1.
Also named to the bank's official
the
of
a
June
department
of the bank have been appointed
Assistant Vice-Presidents of the
Connach
I
"
Marine
At
Mac-
the appoint¬
ment of Bernard F. Curry as a
Trust Officer and of Robert C.
Hew York announces
" ■',
*
%
These
gether with
Trust
%
and
Hawthorne
Mortgage Department at the
Company's Head Office.
and
capitalizations
June 1, that the Comptroller of
on
7, William H.
signed to the Fifth Avenue Branch
of the Trust Company and Mr.
Scheidel to the Real Estate, Bond
CONSOLIDATIONS
BRANCHES
of New
Company
June
on
Scarbrough and John A. Scheidel
were"appointed Assistant Trust
Officers.
Mr. Scarbrough is as¬
News About Banks
NEW
held
.
President
Westchester,
in White Plains, N. Y., announced
He
bank
became
in
1944
President,
as
George
Young
Jr.
In
sale of
the
new
amount, while $10,increase
represented
accruing from the
stock, as a result the
Volume 131
Number 5436
.
.The Commercial arid Financial Chronicle
.
(2651)
capital is
now $160,000 compared
$100,000 previously.
with
*
electorate
Sterling Convextibilily and
*
extensive
Robert H. Seal has been elected
Assistant
Vice-President
Gross National Bank
Texas.
He
of
duties
of
San
An¬
the
new
June
a
The British Election Result
The
assumed
tonio,
his
of
position
Dr.
1.
if
if
convertibiii y
President S. Clark Beise, of the
Bank
of
Calif.,
America,
San
the
announces
the
ai
Francisco,
duced. At the
for
return to
a
be
of sterling. Says aim is to return to convertibility
delivery
large scale gen¬
eral purpose electronic data proc¬
essing machine. This, Mr. Beise
■explained, is a major, high-speed
bank
computer
called
of
a
the
of
kind
"Electronic
scribed it
fact that
the result of the general election
Eden's
Conservative
Government
office for
in
,
a
further period
de¬
*
to
up
a
is liable
years
machine of tremendous
capacities,
capable of the mass processing of
business data at lightening speed.
Pre-installation work is novv in
five
affect
to
the
prospects
sterling
o
t
o
f
a
Possibly
systems
consumers'
est
possible
have
votion
of
staff
effort
in
in that direction will be the
move
11C
:
The
*
s
Canadian
head
merce,
that
nounces
Bank
G.
of
Com¬
Toronto,
has
sity, joined the bank in 1947. Fol¬
lowing earlier experience in
he
the
at
head
served
office,
Assist¬
successively as
Manager in Hamilton, Inspec¬
ant
tor at the head office and Assist¬
ant
Manager of the main Toronto
branch.
if
Nickel
ited,
the
of
International
Company of Canada Lim¬
was
June
on
7
appointed
a
director of the Bank of Montreal,
head office Montreal.
Mr. Win-
who
gate,
joined
International
Nickel 20 years ago, became Pres¬
ident of the company and of its
United States subsidiary in 1954.
He
is
director of various other
a
companies,
is
a
trustee
of
New
York's
community
organizations.
Peet
&
CITY, Mo.
Jr.
pressure
a
sterling, and
have be¬
on
would
pressure
aggravated by
badly timed
a
reduction of the bank rate. Never¬
theless
the
Socialists
heavily
are
committed to cheap money policy,
so
that
they
would
have felt
impelled to act without much de¬
lay.
would have
restrictions,
reinforced
and they
would have restricted imports, in
They
exchange
be
able
lower
order
to
bank
rate
duly
large reduction of the gold
through the withdrawal of
to
without risking
the
an
un¬
reserve
funds
because
here
kept
of
the
high
bank rate.
Convertibility would have been
indefinitely postponed by
While
government.
Mr.
Gaitskell
a Labor
opposition,
in
made
of
secret
no
his
hostility towards the
idea.
Possibly as a Socialist Chancellor
the
of
Exchequer he would have
felt impelled to pay lip service to
his support of the ideal of con¬
vertibility,
be
not
for
emphasizing
time
same
that
favorable
for
its
the
at
conditions
long time to
a
would
adoption
come.
now
the
to
idea
of
a
flexible
pound. Mr. Gaitskell would prefer
to
make
changes, if necessary, by
devaluations
or
H.
O.
Co., 23 West 10th Street,
members
the
of
New
York
and
Mr.
official
and would
of such
LOUIS,
able
Mo. —Paul
C.
Uhlenhop has joined the staff of
Edward D. Jones &
Fourth
Street,
Co., 300 North
members
of
convertibility
sterling.
have
may
Legal
to wait
the
a
favorable moment when it
will be considered safe to
assume
commitment.
a
of
recently well-informed circles
thinking in terms of 1956,
they believe that convert¬
were
now
ibility will be resumed in the
future. Should
near
this
progress
at
Britain's
economy
able
extent,
have
to
There
is
the strikes
writing
to
a
however,
revise
their
in
damage
consider¬
they
sterling to find their
that
Mr.
in
to
Daiton
&
Butler
the
own
has
authorities
the idea of
a
sible
that
office, he will be
his
monetary
moment.
of
some
were
Co., 735
Elworthy Co.
(Special to The Financial Chronicle)
FRANCISCO,
Francis H.
White has
until
filiated with
It
his
is
outflow
though this entailed
even
believe
That
have
part of the Com¬
convertibility plan,
but
faded
later
ground.
the
it
Now
into
the
Exchequer
the
back¬
Chancellor
is
inclined
of
once
towards
combining the
turn to convertibility with the
more
re¬
re¬
The
and
First
196
Boston
associates
offering
are
$74,000,000 of 3V4%
Florida
State
revenue
bonds
1995
7,
The issue was
competitive bidding June
at
on
at
par.
bid of 98.32%.
a
Proceeds from the
bonds
ect
No.
which
link
is
State
a
envisioned
the
as
north-south
the
Parkway expected to extend
sterling. This does not
the authorities would like to allow
starts
at
sterling
connection to Route U. S. 441
of
fluctuate
to
before
the
$2.78-$2.82
freely
for
announced
new
or
secret. It
the
speculators
sterlingto
be
seen
limits would
be
whether they would
a
seems
authorities
it
existing limits
dollar rate. It remains
whether the
as
They merely
war.
widen the
probable that the
would
in
closely-guarded
prefer to
ignorance
keep
the
of
limits.
In
the
half
its
mile
Boulevard,
It
then
monetary
of
policy,
British
south
a
end
}
Greater
in
1954
tion
Miami
adjacent
terminus
of
Metropolitan
to
the
the
with
1
a
of
50%
figure
census
from
of
more
the
as
than
three
United
Florida 9, an existing
direct
provides
leading
At the in¬
interchange
to
access
to
Miami,
Florida
Miami
of
now
is
offer
af¬
sell
concerns
are,
turing,
construction
Two Join Hooker &
(Special to The
SAN
A.
Financial
nor
have
become
Hooker
&
associated
Fay,
return
Montgomery
Street.
Mr. O'Malley was previ¬
ously with Brush, Slocumb & Co,
H. L. Jamieson Adcfc
(Special to The Financial Chronicle)
SAN
George
FRANCISCO, Call-—
Pokorny has been added
to the staff of H. L. Jamieson
Inc.,
Russ
to
convertibility. Unfortu¬
nately, the coincidence of the Con¬
victory with two major
industrial
disputes
has
compli¬
With Vickers Brotheis
a
are
solicitation of
has become affiliated with Vickeu
Brothers of New York.
an
offer to buy
any
of
'-/'V;..
ASSOCIATES, INC.
Par Value)
Price $5.00 per
the situation. It would
mistake to
held
remove
be
Share
restrictions
is liable to be
be obtained in this State from the undersigned and in any
lawfully be offered from registered or licensed investment
on
sterling
the balance of
gravely affected by
or
brokers in securities in such State.
Charles Plohn & Co.
a
the remaining
by overseas countries just at
the moment when
may
State where these securities may
dealers
,
Members
New
York
25 Broad Street
Stock
•
Exchange
\
(Special to The Financial ChrohicIe)
COMMON STOCK
Copies of the Prospectus
Co,,,
Building.
or
servative
with
221
312,500 Shares
NATIONAL TELEFILM
heavy ini¬
Fay
Chronicle)
FRANCISCO, Calif.—Dean
quite recently, of the
no
trans¬
Eyre, Jr. and Kevin J. O'Malley
'-'f'
The
natural
expected to be firm, so
was
and
portation industries.
offering is made only by the Prospectus.
( 10(
and moin
BOSTON, Mass.—Graham Shavr
ISSUE
•
t)
leading
than 33% of the working popula¬
tion is employed in the manufac*
areas.
to
&:i
the
major
ing April 1, 1995, these bonds
an
thi
brings
visitors
this
area,
Greater'
contains
over
1,65)
manufacturing
Miami
April 1, 1955 and matur¬
these securites. The
a
to 1j,j
Although
which
5,000,000
annually,
industry
area
m
as
the Parkway
rapidly than thn
State.
tradd,
times
States
by
more
the
estimated
Beach and other metropolitan and
Dated
195)
one-
tersection of Routes U. S. 441 and
routes
of
tourist
northerly direc¬
a
directly
grown
rest
tion to terminate at Route Florida
This advertisement is neither
NEW
the
approximately
500,000. The population of Florid \
during the 1940-1954 period nan
Hollywood
point north of Miami.
in
southern
Parkway, which
had an estimated popula¬
approximately 750,000, an
of
increase
of
70 west of Fort Pierce.
domestic
the
Project No.
southern
runs
developed
sphere
the
first
The route of
did
traffic.
area,
con¬
Sunshine
t)
The greatest source of potential
traffic for Project No. 1 wjII b)
Authority's Proj¬
104-mile toll road,
in the future to north of Jackson¬
want to
to
of the
1,
in
used for the
to be
are
struction
of these
sale
ville.
that
completed.
feasible
prior to opening the entire project
served
Corporation
it
wintetf
segment of Project No. I
open any
grown
laxation of the present rigidity of
mean
is
considered
has
to
monwealth
not
is
Turnpike Aufhorily
Bonds Being Marketed
was
idea
construction
It
the
whole, and the coastal
that
reverted
throughout
until
understood
advisors
Elworthy & Co., Ill payments of the United Kingdom
Sutter Street.
the
reverse
working
difficulties
no
convertibility.
exchange
Calif.—
become
to
have
tial withdrawals following on the
cated
SAN
of
contractor*)
should
$74,083,000 Florida
due
flexible sterling rate.
beginning Jan. 1,
1994.
fast
been
pursue
that there would be
John R.
North Water Street.
Now With
to check it,
safeguarding the
measures
temporary part-time unem¬
ployment. Possibly history may
won
the
000 for the year
policy. His aim is to return to
convertibility at the earliest pos¬
trend
Kurtz has been added to the staff
F.
if necessary,
Turnpike Authority
may
forecast.
to
reason
very
from
.
.
ing
Adds
(Special to The Financial Chronicle)
Gardner
the
politically in
adopt,
sake
gold,
sion created
by a Conservative
victory would provide the right
psychological moment for resum¬
■of
continues
now
It would be difficult to forecast
sterling
New York and Midwest Stock Ex¬
changes.
—
measures.
repeat itself in this respect.
important is that, while until quite
revenues
range
some
opinion that the favorable impres¬
MILWAUKEE, Wis.
boom
is
to
taken
was
for Project
$4,600,000 for
the year beginning Jan. 1, 1957,
estimated to be the first year oi
operation, to revenues of $15,825,1
with¬
from
the
Gardner Daiton
the
position
a
Estimated
No.
have allowed the rates
confirmed
(Special to The Financial Chronicle)
have
support
transferable
in
markets
Now
With Edward D. Jones
would
Gaitskell
level.
Midwest Stock Exchanges.
ST.
if
power may
monetary
government
re¬
ling to fluctuate freely and to find
own level. On the other hand,
Ray A.
—
with
transferable
constitute
The Labor party is known to be
hostile
drawn
is
deflationary
But
prices ranging from 103V2% after
March
31, 1962 to
100%
after
31, 1982.
March
its
(Special to The Financial Chuonicle)
KANSAS
of
the date of convertibility. What is
easy,
adverse
purchasing
obviate the necessity for
course
government
such
occasional
H. O. Peet Adds
of
•
would, balance of payments. In 1952, a
of course,
reserve
the right of few months after the general elec¬
abandoning the artificial support tion of October, 1951, firm action
The
purposes.
opportunity for lowering the
bank rate. This would not have
valuations rather than allow ster¬
Ricketts,
practical
sible
the
of
Seamen's Bank for Savings, New
York, and is interested in a num¬
ber
faui
for
Until
if
Henry S. Wingate, of New York,
President
British
convertible
a i t s k e 11
would have taken the earliest pos¬
come
Royal Canadian Navy
during the last war and after
graduation from McMaster Univer¬
and
the
:,;;r>^^;G
an¬
Currie
B.
the
branches
Dr.
such
been appointed an Assistant Gen¬
eral Manager at the main office
in
Toronto.
Mr.
Currie
served
with
in
because
a
Socialist
victory would have resulted in an
*
office
been
of
to
been
branches
better customer relations.
;
first
for
monetary
policy. Mr.
report¬
ing to the data processing center,
thus
reducing routine clerical
duties and permitting more de¬
to
The
unpopular
major changes
bank, will also
by permitting transfer
of much statistical branch
step at the earli¬
moment.
become
would
V.
tends to take that
reason
every
Bond
existing infla-',
'The new toll road is expected
continue, the to be opened for traffic
by Jan. 1,
Bank of Eng¬
1957. Weather conditions in Flor¬
steps to curtail ida^ are
such
that
to believe that Mr. Butler now in¬
there is
so
through operation ot
'Redemption Fund at
prices ranging from 103Vz% from
April 1, 1960 to 100% after March
31, 1980 and by other means at
the
the
take
may
transferable
sterling
parity with the official
sterling rates. If this parity is
maintained, then sterling' would
have
the
to
time
save
land
and
there
been fully installed the equipment,
according
psychological moment
redeemable
conditions
gained control
equip.ment will occupy 8,000 square feet
of specially fabricated floor space.
operating
Treasury
some ex¬
Should the rail and dock strikes
become prolonged, their effect on
San
When
tionary
have
the
of credit,
ity. Even
the Socialists
the
the
credit facilities.
rates
where
Should
these
of
by
for the restoration of convertibil¬
raising
Francisco
result
a
as
to miss the
degree.
Had
time, it would
effective
tent.
considerable
the bank's data proc¬
same
more
men.
essing center, 500 Howard Street,
progress at
made
maintaining the volume
and even expanding it to
strikes the government may
as
regulate economic
there be n^ ade¬
the strike of dockers and railway-
May 26 confirmed Sir Anthony
on
popularly
Brain." He
the latest model of
as
LONDON, Eng.—The
the
making
bank rate
adoption of a policy of credit re¬
strictions. Hitherto the high bank
rate did not prevent banks from
possible moment, but strikes of dockers and
railway men may mean further delay.
•of arrangements for early
to the
to
Should
of
the
of payments, the bank rate
may
be-raised further before it is re¬
earliest
completion
of
quate improvement irr the balance
Einzij points out the Conservative Party victory in the
Bri.ish elections indicates favorable prospects
if
endorsed
now
policy
use
weapon
trends.
By PAUL EINZIG
on
has
government's
10
American
New York 4, N.Y
June 8, 1951
Stock
•
Exchange
HAnover 2-6540
20
The Commercial and Financial Chronicle
(2652)
Continued
jrom page 3
At Dean Witter & Co.,
Thursday, June 9, 1955
.
.
.
Outing In Victoria, B. C.
Germany's ArmingDisarming Europe?
of
in Asia is almost
tion
about
a
to say
nothing of disastrous reper¬
approach
angle."
certain to bring
"sternly" neutral Japan,
cussions in the South-Asia area.
This
Let
Neutralization vs. Encirclement
should
to
back
Coming
-
Europe:
obvious now, if it was
be
the Russian aim
is to destroy the menace to their
existence, the pressure on their
resources, and the obstacle to their
subverting expansion, which the
encirclement represents — rather
that
before,
not
than
wait
to
Their
answer
its
for
completion.
that threat is to
to
clip the wings (or claws) of the
"eagle" by neutralizing
think
we
: ♦
-:
to
understood
was
should
problem from that
the
Germany
neutralized
it
I
arms.
and
mean:
rest
the
and
Western
be
arma¬
ments reduced in order to end the
of itself—that is the gist
care
And that is
Europe's attitude.
of
Four
is bound
Conference
Power
the
which
toward
direction
the
future
the
let
And
War.
Cold
take
drift, provided, to repeat, that
definitely ready to
to
the Soviets are
their
release
grip
Germany.
on
Europe will be satisfied with that
"proof" of their peacefulness.
American
Per se, the defeat of our Eu¬
them into at ropean policies could be consid¬
partial
disarmament, and ered a boon in disguise. It will
forcing the retreat of its opera¬ force us to do the rational thing:
tional
bases.
Another bolshevist to concentrate our defense prep¬
its
lulling
Allies,
least
objective is the building up of an
American-financed arms pool that
would help to stabilize the. Eu¬
arations
warfare
nuclear
on
which they
on
should have been con¬
centrated all this time.
The trou¬
economies.
The Soviets' ble is, one trouble, that having
prospects of success are exceellent. built a belt of neutral countries
Yet, all of Western Europe is gaily on its western side, the Soviet
rushing, with Churchill in the bloc will have a relatively free
lead, to embrace the Russian peace hand in the East. The hand will
and co-existence proposals. As to be free not
only in a military, but
the Germans, no power can force
especially also in a psychological
them to stick to our policy line,
sense.
Maneuvered into
an
at¬
ropean
they have consented with mosphere of security, Europe will
margin only, if the alter¬ object to
any American
attempt
native is a unified nation. No gov¬ to
stop any "minor" expansion by
ernment in Bonn could refuse it
China. And, given the psychologi¬
and stay in office.
cal effect of the European mode
That is exactly the alternative
of thinking on this country, ap¬
the Kremlin appears to offer on
peasing China by substantial con¬
the pattern of a neutralized Aus¬ cessions is a foreseeable
likeli¬
tria.
Another step in the same hood. Or
could it be that we shall
The Seattle and
Tacoma, Wash., offices of Dean Witter & Co., left Seattle May 20 for a spring party
a week end devoted to golf, tennis, and
swimming, they returned by Trans
Canada Air Lines on May 22.
Front Row (left to right): John Fitzsimmons; Andrew A. Jordan; Girton R. Viereck; Bruce Keen.
Back Row (left to right): Richard W. Treacy; Richard Galbraith; Larry Kimball; Norman Smith;
Floyd Jones, Tacoma, Wash.; Charles Guilford, Tacoma, Wash.; Townley W. Bale; Don Williams, Tacoma,
Wash.; Robert Kenyon; Pete Potter.
tmuui
in
Victoria, B. C.
-
Continued
have sufficient "guts" to stand up
There
6
page
The Economic Outlook
narrow
direction, also on the Austria-pat¬
jrom
Bankers Underwrite
Utility Stock Offer
Holders
it
apparently does, and is willing
to
withdraw from East Germany,
Bonn will not implement the Paris
(Incidentally, Ger¬
many's supreme court has not
adjudged as yet the legality of
the Saar agreement.) Thereafter,
agreements.
nothing
stop the neutraliza¬
Europe. The concept of
can
tion—of
NATO itself will become obsolete.
As it
do
is, its Scandivanian members
even permit American air
not
bases
their
on
territory.
Without
Germany to link it with the
West, a Danish "army" would be
a
valuable
as
of
as
large-scale
if
France
the
regiment of toy
a
And what is the purpose
soldiers.
in
from
preparedness
is
she
separated
potential enemy by a neutral
a
depth of 500 miles
terrain with
To
more?
or
American
have
which
would
chance to "meet" Russians
no
unless
keep in Europe six
divisions
the
Turkish-Bulgarian
border, of all places?
Turkey,
Greece, Spain and Britain may
on
remain American air bases.Beyond
holding
the
will
much
left
the
evacuate
the
"fringes,"
be
of
not
the
Deal.
But such
a
to
attached
to
be
nothing
but
us
Continent,
Russians do
condition
for
even
make
Colossal
that
to
if
a
Peace
string is bound
the
"package"
Molotov is speaking about; Europe
surely will have
no
objection.
The
American
well say
taxpayer
may
as
Amen.
Characteristic of Europe's mood
is the comment volunteered by
French Premier Faure with refer¬
ence
to
the
"We
tion.
cannot
as
We
a
as
ord
June
Service
Co.
stock of
the statement that dem¬
was
olitions of the slum clearance type
absolutely essential in order
keep a continuing demand for
better housing all the way up the
being
offered
rights to subscribe for an aggre¬
gate of 275,464 shares of the util¬
ity's
stock at $38.50
common
share
on
the
tional
share
held.
The
Blyth
basis
for
of
each
First
ten
Boston
&
per
addi¬
one
Co., Inc., and
Barney & Co. head an underwrit¬
ing group including Boettcher &
Co. and Bosworth, Sullivan &
which
Inc.,
will
purchase
Co.,
any
shares remaining unsubscribed at
the
expiration of the offer on
June
20.
The
company
concur¬
rently is offering its regular em¬
ployees and those of its subsid¬
iaries the
privilege of subscribing
for 27,546 other shares at the same
price.
Proceeds from the two offerings
will be used in connection with
line.
promoting home ownership, with
all that it entails, or home oc¬
cupancy,
which involves a very
Certainly, no one is in a
better position to promote such
demolitions than
is the thrift
in¬
over
must
commence
German
eternal
unifica-
take the situation
it exists. It is now more
total of home mortgage
debt has increased from $18.5 bil¬
lion
sum
In this connection it is
to note that in
interesting
the last four years
$93 billion of mortgage loans
and
apparently
were
about $55
made in
increase of
total. This
The
and its subsid¬
electric
and
gas
service wholly within the State
of Colorado, including the capital
city of Denver. Consolidated oper¬
ating revenues for the 12 months
ended March 31, 1955, amounted
to $67,321,000 and net income was
$8„404,000.
supply
Andrews
Mass.
has
—
been
added
to
the
to produce an
billion in the
rather
tion
startling piece of informa¬
arises
out
changes
of
the
fact
that
of
of
suance
a
usually for
it
brand
a
mortgage,
new
larger amount, but
rather
clearly
indicates
also
that the equity in the
home, which
impelling
reason for continuing home own¬
ership, may not be as realistic as
has been considered the
we
to
believed. It is reasonable
had
that
assume
the
mortgages
have
been
five
a
many of
outstanding
great
now
existence
in
less
than
that perhaps as
much
as
one-quarter
of
these
mortgages have been issued since
and
years
the
beginning of 1954.
Another
has been
Cloud
on
:>
The
cloud
-v
the
on
is
of
of
our
system
capitalism is
true
that
how
money
as
no
as
it
may
wise and sound
makes
was
no
the
obtained
free
in¬
all the difference in
long
so
It makes
the world
at
that time whether the money was
obtained
from
creditor.
The
debts
partner
a
total
sum
or
of
a
all
(aside from the U. S. Gov¬
ernment debt) owed by businesses
with less than 20%
and less than
1953.
were
a
earlier
year
10% during most of
Also, in March of this
of all VA loans
thirty years,
a
year
mid-1953.
earlier
The
of
and
year
made
with
2%
in
Savings and Loan
thrift
If
were
compared
business is dedicated
sold in
made
down payment, compared
to
and
homes
the pro¬
of
are
home
being
increasing percentages on
of
at
or
1955
the
an
annual rate of
In the first quarter
disposable income
of $260.6 billion*
rate
at
was
in¬
-an
of
31/o%> but personal sav¬
of that amount, or
$18.7 million, a decrease of $3.1
billion, or 14%.
crease
ing
7.2%
was
people
saving
a
little
The
What
are
spending
does
this
institution?
of
rate
saving in the first
1954, as stated above,
$21.8 billion.
ing for the
The actual
sav¬
turned out to be
Of this $2.7 billion
year
billion.
$19.5
nation
thrift
the
quarter of
was
the
less and
more.
to
mean
of
little
a
was
in demand
lion
in
and
$4.5
associations.
loan
deposits, $4.4 bil¬
savings deposits
billion in savings and
time
in
decrease
and
If
the
rate
of
personal saving, just
cited, continues through the
year
it will represent about
two-thirds
increase in
the
at
the
interest
on
when it
over
that is
a
and
to
roll
it
due.
Perhaps
safe assumption as far as
nation
is
it
comes
is concerned
as
far
as
but
is
it
the individ¬
and in
It has
just been established that
home mortgage debt has quad¬
rupled since the end of World
War II. Short-term
consumer
has increased much
more
debt
rapidly,
from $5.6 billion to approximately
$33 billion, while installment debt
has increased from $2 billion to
are buying
with tomor¬
We
today's satisfactions
income, which mean$. that
tomorrow's income must continue
a
substantial section of the
much
Midwest
are
situated
than
whole.
much
may
before
and I
The
favorably
more
the
is
trends
more
They
concerned?
row's
no
the
time stands at about $325
45% of the VA loans
with
appeared
in
of
last
year's total
present
savings and loan savings accounts
billion,
and about the same percentage of
about $50 billion more than the
all the time and savings deposits.
total debt of the government, it¬
These are the things the thrift
self.
We
long
since ceased to
institutions
should
be
thinking
worry about our ability to
pay
that debt and we now are only about, nationally. The associations
in
the great
Pacific Northwest
concerned about our ability to pay
individuals
and
nearly $23 billion.
it
Dis¬
income
Declining Savings Rate
difference
wants it back.
one
when first pro¬
posed. In March of this year about
as
amount,
The
has been made that the only valid
of
rep¬
audience.
personal
$21.8 billion.
Debt
Carrying the discussion of debt
just a little further, the statement
criticism
Association
this
running
at an a nnual rate of $252 billion.
Personal saving was 8.6% of that
•'''
■
Impact
equally safe
Horizon
mortgages have been issued
not have been
ownership.
members
which
first quarter of 1954 was
concern.
the
boon to the lender and
a
motion
Street,
responsibility.
another
large enough to watch with some
self-amortizing home loan
rated,
State
of
sense
is
horizon—not large, to be sure, but
ual
The
staff of Coffin & Burr, Incorpo60
limited
This
flexibility of debt and it is quite
14%
Theodore E.
whether your
order
$38.4
for
(special to the financial chronicle)
dwellings,
doubt as
Associations are
same
for grave
enterprise
46%
BOSTON,
room
billion repayments were
is
company
the
rent
is
1946, to $37.5 billion in
1950 and to $75.9 billion in 1954.
Major item in the pro¬ to the borrower, as well, and the
a
$61,000,000 allocation monthly payments on these longelectric
facilities term mortgages have not been too
including more than 200,000 kilo¬ burdensome, but the recent change
watts of generating capacity.
in the terms under which home
iaries
to
to
in
additional
question of security and reduc- of the Boston Stock Exchange.
The
1955-57.
gram
for
more
there
the
company's proposed construc¬
tion
program
under which ap¬
proximately $80,00Q,000 will be
expended during the three years,
represent not much
than 60% of what it would
cost
ownership quite fre¬
quently involve the repayment of
Corp.,
the original mortgage and the is¬
Smith,
shares
which
terms
were
made
are
trend
every
in
resented
to
rec¬
Public
common
3
Coffin & Burr Add
it is and look at the prevailing
detente
of Colorado
forthcoming Big Four
conference:
bickering
of
practically
posable
ago
tern, is the cancellation of Russia's for our modest containment poli¬ stitution executive and no one is
reparation claims against her Ger¬ cies (of very limited scope, heav¬ more likely to benefit from the
man
Satellite
(but imposing
a en
knows) in the Far East, not¬ end result.
"compensation" of about 2 billion withstanding Europe's opposition?
East-German marks for the plants
which the Soviets have expropri¬
ated and kept until now—on top
of the 10 billion dollars, at least,
squeeezed out in reparations).
If Moscow means "business," as
another
is
developing some elements of dan¬
ger and which has been felt by
to which
a
After
nation
are
as
a
running
elsewhere.
strongly
reach
not
your
area
they have run their course
glad to wind up this dis¬
am
cussion—which
was
meant
to
be
provocative — with the statement
that it might prove of only aca¬
demic
interest, to
this
particular
audience.
With Shaw, Hooker
*
(Special to The Financial Chronicle)
SAN
FRANCISCO,
Francis R.
Calif-
Little has become
af¬
at
approximately today's rate be¬ filiated with Shaw, Hooker & Co.,
cause
the sum total of interest 1
Montgomery Street, members
and amortization on the personal of the San Francisco Stock Ex¬
debt
now
represents about 14x/2%
change. Mr. Little
was
previously
total
the
disposable, income. with Reynolds & Co.
That figure may not be the dan¬
ger point but it certainly com¬
With Bache & Co.
pares unfavorably with 1212% in
of
1951 and 6.2% in 1946.
There
watch
are
in
activity
some
of the things to
respect to
the lending
of the thrift institution.
(Special to The Financial Chronicle)
CHICAGO,
111.
—
Frank
De-
Vuono has become associated with
Bache &
Street.
Co., 135 South La Salle
Volume 181
Number 5436
.
The Commercial and Financial Chronicle
.
.
21
(2653)
Continued from page
Europe might well triple its do¬
4
mestic production of crude oil
by
1975.
However, it seems certain
Oil's Bright Future
for oifr stockholders: It took a lot
of doing;,' but the net result was
dustry
must
find—every
that
matter
no
efforts to
duction
how
vigorously
increase the local pro¬
Western Europe are
of
pushed, massive imports will still
year
the
have
"have? not"
not'J'as to
not
nations
oil
to
as
(both
and
"have
dollars) did get oil, and
their post-war recovery is a matter of history
As
these
nations
economies—in
levels
increased
than
their
instances
those
of
to
ore
their Deoote began to
bettef
live
most
higher
war—an^as
rebuilt
their
neeris
for
oil
trade
solved
became
Local
eign
their
on
energy
as
inadequate.
this
sought
reduce their outlays of
exchange
Repurchases is
oil. One step they have taken of
local
the future demand for energy,
Company's
.
for
the
construction
refineries.
struction
has
And
taken
such
of
con-
place—-in the
United
studies
recent
_
Future
than any
,
Demand
consumption
to
bv
63% between
now and 1975, with
increasing from the
present 8,200,000 barrels a day to
13,300,000 barrels. The contributhe
use
of oil
tion of different fuels to the total
Kingdom,
the
Benelux
countries,
Italy,
South
Africa,
India, Japan, Australia, Brazil and
You
possible
These
to
plants
local
meet
make
oil
it
needs
will
that
we
rather than finished
products,
whifh latter cn«;t mnrp nf rmircr*
which latter cost
more, of course,
nn<;itinn
position
products will
from 25 to 40%
save
in foreign exchange. Another
step
been to intensify the search
has
for
local
place
crude
where
with notable
There the
oil
this
deposits.
has
One
been
done
is in France,
success
French affiliate
of
the
Jersey Company has brought in
field
45
which
miles
south
promises
of
to
a
Bordeaux
be
of
great
will
grow
as
rpsprvpc
reserves
with
Latin
and prices tend to rise. Coal will
slowly recover to a level a bit
over
500,000,000
tons
by
1975,
about the same demand as the
coal industry experienced directly
after - the war. Hydro - electric
power will have only a moderate
expansion, and will probably lose
some position in the over-all en-
American
ancj
js
oil
70%
of
population
of the U.
S.
the
at
This
year.
stood
energy
is
rate
of
that
means
still,
the require¬
would increase by one-half
ments
the next 20 years.
in
In
the
.
f
,
consumption of
en-
f-^3'WeStatethat the
^e"X«on growth
and
.
.
P
p
au
will
barrels
i~
that
mean
America
will
of
consu^ption
it
4.
-inrjr
t
oil daily
contrasted
as
,
,
to
the
present
not be
contained
ing
centers,
chiefly
pliers
With
and
mand
the
a
crude
oil
southern
the
as
little
role
growing
social
and
out
as
they be
of sup¬
are
many
industrial¬
will
tend
geographically, thus
in
the
nature
the
of
oil
industry, where very large
supplies may be found one year
and very little for the next sev¬
eral years, are periods of oversupply, and then for a time sell¬
of
We
continue, for
I
But
more.
for total
in
particular, is
need
never
not have
a
part
next
of
our
and
great that
oil
we
our
score
of
producing and refining,
22
Second
lister
was
become
Mr.
formerly
begin to be available in the late
transportation, and marketing fa-
Merritt
own
1950's when units like the Duquesne Power Company's, near
cilities will be required to satisfy
Crude oil discoveries in
show
some
energy.
Italy also
Pittsburgh,
promise.
Th*
Atomic
™i
places since World
western
Canada
midhiluch
fn
reftnine
lenning
War
in
—
the Middle Fast
Franc!
areas as
in the
tne
II
dIus
branch of the busi
Dranen ot tne ousi-
the
construction
of
new
plants by Jersey affiliates as well
many other companies in the
ness,
as
industry
has
—
brought about
O
nf
thp
hn<dnp<;c
nil
Onp
exports'of
effect has been that
into
operation.
for ships may be-
power
oil
&
fact,
country, which is the
largest user of oil in the world
our
and accounts for
world
half of total
over
consumption
while having
world's proved
only 20% of the
has now become
importer.
reserves,
a
net oil
Record High Consumption
It
would
continue
nation.
at
an
that
appear
to
be
Oil
will
we
oil-importing
an
reserves
in
U.
S.
are
all-time high level—some 32
billion barrels—but
tion is also at
domestic
oil
our
record
consumplevels.
The
industry
has
main-
tained for a good many years a
level of exploration and development which maintains our known
underground oil
10-12
to
at
some
supply related to the
years
current rate of
seems
reserves
be
consumption.
about
the
This
maximum
reserve
the industry can afford to
carry.
To
replgrush
the
under-
ground inventory is a constant
tas,k. Probably few people visualIze the amount of oil that is used
in
the
,ike]y t[)at the atom>s contribution
to U. S. over-all energy needs in
1975
will
1.5%
amount
the
of
only
about
to
United
States
alone.
Last
fuels
Nuclear
total.
ffinlrl
1tc,a
nf
ootrir»
nnu/PT
in the field of electric power
use
'words, to compensate for
consumption of oil, the in-
other
with
King
&
more
Inc.
and
difficult to pre-
Cantor,
relatively undeveloped
are
as
en-
-
users,
holding 60% of the
globe's population and presently
consuming
only
10%
of
the
We
source.
other
111.
—
Ralph
energy. The slightest
tlincn
ii
per capita rise in those areas will
nnmfn
rvn*4
ncn
in
nrnnc
such
as
etc.
will
than
energy
sources
solar energy, heat pumps,
be
contributing
negligible
a
more
the
to
amount
over-all energy picture.
total
in
Needs of Western Europe
Looking
other
(Special
to oil
as
C.
Cotte
staff
of
oil
to
the fullest
the
just
The
world's
The
be
Political
as
to
nuclear
as
the
ceivable
the development of
in Europe,
power
of every
success
effort
to
as
con-
improve
the
fact
that
needed
in
oil
oil
rate
will
of
grow
about
next 20 years,
the
European
that demand
at
a
4%
a
for
compounded
for the
year
which would mean
market would be
greatly
an
expanding
the
new
will
be
supplies
year's dailv
We
are
needed
alone
production
confident
in
1975
from
the
parts
the
of
or
governments
ize
that
if
the
R. T. Montin, Oak¬
Bay; Jess T. Wolfe,
Santa Rosa, and Anders Montin,
the
40
Speakers at the climax banquet
Jamieson, reviewing
will be H. L.
progress
and
and "Rags"
Creek.
plans,
Montin, of Walnut
Offering Price: 25c Per Share
Business:
world
extreme
in
The
-company
was
incorporated for the purpose
engaging in the business of exploring for, developing
and operating uranium-vanadium properties totaling over
1000 acres in Montrose and San Miguel Counties, Colorado.
of
It is
na-
now
in its
exploratory stage.
Offering Circular
may
be obtained from the undersigned.
socialistic tendencies
are
GARDEN STATE SECURITIES
89
Hoboken, New Jersey
Washington Street
SWarthmore 2-0633
coming to real-
the factors which bring about
healthy oil industry. Countries
both hemispheres are modify-
Please
Ibex
send
me
Uranium,
copy
Inc.
of
the
Offering
Circular
'
new
the
Name:
encouragement of the large-scale
investment
for
the
Gradually,
too, there is coming to be a recogmodern
nition
political climate is right, Western
Captain Charles W. Scribner, Rob¬
Horth and Bing Wong, San
ert
(A Wyoming Corporation)
oil
ing oil restrictions or setting
policies more favorable to
crease,
participating
Parks, Los Angeles;
IBEX URANIUM, ING.
I have indicated earlier that
at the
that
to
Investors,
California
increased
a
To give you some
idea of the magnitude of this in-
include Robert
New Issue
amounts does not by itself mean,
of course, that they will be avail-
consuming 4,580,000 barrels a day
as compared wth 2,174,000 barrels
present.
Hacienda.
Discussion leaders
(Par Value 10^ Per Share)
could inhibit the discovery and
development of oil deposits,
But here, again, we are inclined
to be optimistic.
There is growing evidence that people and their
expect
added
been
supplies will
tionalistic
We
10-12, personnel of
Co., Inc., will
Jamieson
L.
1,200,000 Shares Common Stock
in total demand for energy
there forecasts a bright future for
oil.
has
needs.
output of coal, the tremendous increase
June
Fresno,
Napa.
Calif.—George
Atlantic Boulevard.
business, particularly in the producing phase,
is
very
susceptible to
political
conditions. To be specific, in many
the
Financial Chronicle)
BEACH,
Situation
Granting the most optimistic
well
Calif.—For
Workshop" in
FRANCISCO,
its "Second Annual
to keep
able.
pre-
Workshop for Personnel
SAN
every
expect this movement to continue,
dictions
to The
of
parts
energy source, and we
an
of
LONG
for all forms of energy and all of
them will
have
to
exert them¬
abreast of
the
prospects are no less
encouraging. I have already in¬
dicated how
Western Europe is
beginning to turn more and more
at
barrels
and
Hold
additional
Faced with such prospects, you
can
see
there is plenty of room
the
world,
demand,
for
oil
that
necessary
Address:
,
industry.
restrictive
City:
taxes,
blocked
currencies, quotas, and
other discriminatory practices do
for
this
land the East
Calif. Investors Add
tin
substantial
H. L. Jamieson to
day.
selves
'
a
shoes, and putting. A dinner
all members will conclude
Francisco; J.
'
'
-
other events will
ping pong, horse¬
p.m.,
at The
N.
ergy
relying onforesee that create a of
th s en rgy millions
do not
potential
V
and
include, tennis,
2:00
gather from its regional bases in
California. Meetings will be held
Upham
to The Financial Chronicle)
CHICAGO,
Competitive events of the day
begin at 8:30, when golfers tee off.
A baseball game is scheduled for
H.
Joins Harris,
(Special
It is much
Co.,
neces¬
tributary
areas.
market
entire Middle East.
such
to
increase
of the entire state of Louisiana.
other
exports
generation with one out of every obviously result in
amount to only 20% less than last
In
sary
consuming
will probably find their greatest world's total
the figure was 2.8 billion
barrels. This is equivalent to the
present proved crude oil reserves
year
and provide
event, Field
Day
Co.,
at about the same time< But de~ dict the P°tential for the remain- Peters has become associated with
spite an allowance for a fairly ing parts of the world- The Mid"
Harris, Upham & Co., 135 South
raP'd rate of growth, il seems die East, the Far East, and Alrica La Salle Street.
from the U. S„ which was once a
principal exporter, have virtually
dried up except for various spe¬
cial products which are exported
in
relatively small volume.
In
demand
gin to find Practical applications
a
marked chanee in the world-wide
(10
nattern
get
local
Palisades, will have the greatest
membership participation in the
McQuil¬
Fitzgerald & Co.
liquid
of
Day, to be held June 10, at the
Country
Club,
Pacific
Riviera
asso¬
Merrick
Rex
Avenue.
help in providing France with its
supplies
The
Field
yearly gathering.
Calif.—George A.
has
with
ciated
—
Los Angeles
Financial Chronicle)
SAN MATEO,
McQuillister
of
Chairman Wm. D. Witherspoon,
of Witherspoon & Com¬
pany, Inc., announced.
industry does
bright future.
to The
Calif.
ANGELES,
Club
Bond
history of this annual
Joins Rex Merrick
(Special
Record Registration
LOS
which
energy,
so
fear
L. A. Bond Club Fete
period
have given you is convincing that
over
the
long pull the world's
demand
Sixth
formerly with J. A. Hogle & Co.
a
a year or so
the picture I
think
has become associated
& Co., Inc., 215 West
Street.
Mr.
Spillane was
Spillane
with Blyth
now,
are
over-supply
some
may
in
ANGELES, Calif.—Tim D.
to
cre¬
ating
a
world
energy
pattern
much less spotty than the one we
have even at present.
Inherent
LOS
de¬
progress,
supply
Timothy D. Spillane
self-
as
consum¬
of
use
tremendous expansion of
years
will
the
customers
or
ization
even
isolated
nor
in
cast
today.
day equals the present daily
production of Venezuela.
So
within
is
producing and
a
oil
There
tries will
1,200,000
r3
.e Present
Darrels a aay.
The increase of 2,000,000 bar-
rels
oil
all oil companies are
as
4*
by 1975 Latin
using 3,200,000
be
well.
as
er's markets.
expanding Latin Ameri..
domestic
upon to
shoulder greater
supply burdens, the international
character of the industry will be¬
come
more
pronounced.
Coun¬
total,
if per capita consumption of
even
from nuclear reactors will
power
10%
increasing
a
domestic
that
than
more
hemisphere in
ergy market,
It seems likely
wastes,
1975.
with
2 Yz%
total
rlp»nlpfprl
depleted
nrr>
are
and
know
to
energy, natural gas will lose some
as
supplies
now
think that after I960 oil's
proportion will
Importing crude ahd refining
locally versus importing finished
time
interested
be
through importing crude petroleurn
that
are
future
and
continue to hold the same, or an
even greater share of the energy
probably be in approximately the
same
proportions as at present.
elsewhere.
picture at
energy
wood
picture in
grow
present
Latin America's energy. It seems
reasonable to expect that oil will
^e United States, we expect
energy
economy.
liquid energy. Not taking into account such sources of
now
will be interested
our
other
to
press
seems
on
dollar
to
I believe you
course
in
situation, for¬
governments
ways
world, any other
very shortsighted.
re-
for
called
expanding Latin
Almost more
other area, the countries
growth
proven
significant
companies in the United States
doubt that
the
in
basing
Refineries
with
border
the fact the U. S. is the most highly
prospected
country
in
the
world's
no
These signs of improvement are
as
the
of Central and South America
the
con¬
by
are
means,^4*^'-
our
are
serves, 15% of the world's potential oil-bearing area, coupled with
of
espegiaJV^
industry1S
Condh>oljS
interests
dramatic
more
This
„
Faced
America
America
Even
surPlus Possibilities that lie south of
With 54%
oil
—
they are for companies like Jer¬
sey Standard which have overseas
Xf'io^n'
to 1950.
1945
arrangements
which
immediate post-war
the
problem
12 years ago.
of the w0rld's oil consumption, American
meant, that the need there for
foreign exchange also grew. And
at the higher level of oil
demand,
the
it
s€em»s mosj desirable to supple-
over their own needs.
pro-
o^ravAi^-^ttfetion of the United States only
a
the
cerned.
.dw'a' figure which
a
coropwraole to the entire
is
ment our d<>mestlc reserves by a
reasonable amount of oil imports
from eountries havinS
where
progress
that they will continue to improve.
barrels
con-
1QAS
from
of
000
many
of - ronsurhption,
country's
Spfllane With
Blyth & Co. On Coasi
Tim D-
But the horizons
brightening and give us hope
_
Eunme's
^
Western
frnm
80%
up
for
reserves
on account
htgtr* le-rtd
20 %
rool
nn
but,
years;
a
run
be required. ,These may well
into the
I have no doubt that the industry will be able to maintain ade-
Quate domestic
always bring about the bene¬
they are supposed to but
usually act to put the brakes on
neighborhood^JD^^00?'"
another Louisiana.
_
that
not
fits
Telephone:
.Zone:
.State:
relating
to
20
The Commercial and Financial Chronicle
(2652)
Continued
from page 3
At Dean Witter & Co.,
Thursday, June 9, 1955
.
.
.
Outing In Victoria, B. C.
Germany's ArmingDisarming Europe?
is almost certain to bring
in Asia
about
"sternly" neutral Japan,
a
nothing of disastrous reper¬
cussions in the South-Asia area.
to say
tion
of
This
Let
Neutralization
to
back
Coming
should
Encirclement
vs.
it
Europe:
-
aim
is to destroy the menace to their
existence, the pressure on their
before, that the Russian
not
resources,
subverting
and the obstacle to their
expansion, which the
encirclement
than
wait
to
Their
answer
represents — rather
for its completion.
to that threat is to
the wings (or claws) of the
"eagle" by neutralizing
its
Allies, lulling them into at
least
partial
disarmament,
and
forcing the retreat of its opera¬
tional bases.
Another bolshevist
clip
American
objective is the building up of an
American-financed arms pool that
would
stabilize the Eu¬
economies.
The Soviets'
help
ropean
to
prospects of success are exceellent.
Yet, all of Western Europe is gaily
rushing, with Churchill in the
lead, to embrace the Russian peace
and co-existence proposals. As to
Germans, no power can force
the
them
stick
to
to
policy line,
our
they have consented with
to which
margin only, if the alter¬
native is a unified nation. No gov¬
ernment in Bonn could refuse it
a narrow
and
alternative
the Kremlin appears to offer on
the pattern of a neutralized Aus¬
Another
the
in
step
same
direction, also on the Austria-pat¬
tern, is the cancellation of Russia's
reparation claims against her Ger¬
man
Satellite
(but
imposing a
"compensation" of about 2 billion
East-German marks for the plants
which the Soviets have expropri¬
and
ated
the
of
kept until
billion
10
If Moscow
it
now—on
top
means
"business,"
as
apparently does, and is willing
East Germany,
Bonn will not
implement the Paris
agreements.
(Incidentally,
many's supreme
adjudged as yet
Saar
nothing
The
Europe.
not
legality of
Thereafter,
the
stop
can
Ger¬
has
court
the
agreement.)
tion—of
neutraliza¬
concept of
NATO itself will become obsolete.
As it
do
is, its Scandivanian members
not
bases
permit American air
even
their
on
territory.
Without
a
Germany to link it with the
West, a Danish "army" would be
valuable
as
soldiers.
of
as
the
regiment of toy
a
And what is the purpose
large-scale
France
if
in
from
preparedness
is
she
separated
potential enemy by a neutral
a depth of 500 miles
terrain with
more?
or
To
American
have
no
keep in Europe six
divisions
which
would
chance to "meet" Russians
unless
on
the Turkish-Bulgarian
border, of all places?
Turkey,
Greece, Spain and Britain may
remain American air bases.Beyond
holding
will
much
left
be
the
evacuate
the
"fringes,"
the
Russians
condition
of
for
nothing
not
the
But such
a
to
attached
to
but
us
Continent,
do
Deal.
be
to
if
even
make
Colossal
that
a
Peace
string is bound
the
"package"
Molotov is speaking about; Europe
surely will
have
no
objection.
The
American
well say
taxpayer
may
as
Amen.
Characteristic of Europe's mood
is
the
comment
volunteered
by
French Premier Faure with refer¬
ence
to the
tion.
as
a
over
German
eternal
unifica¬
it is and look at the prevailing
as
be
arma¬
Cold
let
And
War.
take
the
the
direction
Four
to
which
toward
the
is bound
Conference
Power
gist
And that is
Europe's attitude.
of
future
of itself—that is the
care
drift, provided, to repeat, that
definitely ready to
the Soviets are
their grip
on
Germany.
Europe will be satisfied with that
"proof" of their peacefulness.
release
Per
the defeat of our Eu¬
policies could be consid¬
boon in disguise.
It will
force us to do the rational thing:
se,
ropean
ered
a
concentrate
to
arations
which
built
all this time.
belt
a
the Soviet
relatively free
The hand will
The Seattle and
in
Victoria, B. C.
Front
Row
have
Fitzsimmons; Andrew A. Jordan; Girton R. Viereck; Bruce Keen.
W. Treacy; Richard Galbraith; Larry Kimball; Norman Smith;
Floyd Jones, Tacoma, Wash.; Charles Guilford, Tacoma, Wash.; Townley W. Bale; Don Williams, Tacoma,
Wash.; Robert Kenyon; Pete Potter.
a
Continued
(left to right): Richard
from
only in a military, but
especially also in a psychological
Maneuvered
into
"minor" expansion by
There
6
The Economic Outlook
ago
the statement that dem¬
was
China.
olitions of the slum clearance type
were
And, given the psychologi¬
effect of the European mode
thinking on this country, ap¬
of
peasing China by substantial
cessions
hood.
is
likeli¬
foreseeable
a
Or could it be that
con¬
shall
we
it exists. It is now more
question of security and reduc¬
to
absolutely essential in oraer
keep
a continuing demand for
housing all the way up the
line.
Certainly, no one is in a
better position to promote such
better
have sufficient "guts" to stand up
demolitions
for
stitution
containment poli¬
modest
our
cies
(of
very
limited
scope,
heav¬
in the Far East, not¬
withstanding Europe's opposition?
knows)
en
than
executive and
likely
more
is the thrift in¬
to
The
sum
and
1.950
Utility Stock Offer
of
of Colorado
ord
June
Public
Service
Co.
stock of
common
3
rights to subscribe for
total of home mortgage
to
aggre¬
gate of 275,464 shares of the util¬
ity's
common
stock
at
$38.50
the
basis
of
one
share
on
tional
share
held.
The
for
to note that in
each
ten
per
addi¬
shares
First
and
billion
order
interesting
the last four years
apparently
repayments
rather
$55
made in
increase
total.
of
This
startling piece of informa¬
arises
tion
were
about
were
to produce an
billion in the
$38.4
changes
out
of
the
fact
that
of
ownership quite fre¬
quently involve the repayment of
Boston
Corp.,
the original mortgage and the is¬
Inc., and Smith,
suance of a brand new mortgage,
Barney & Co. head an underwrit¬
usually for a larger amount, but
ing group including Boettcher &
it
also
indicates
rather
clearly
Co. and Bosworth, Sullivan & Co.,
that the equity in the home, which
Inc., which will
purchase
any
has been considered the impelling
shares remaining unsubscribed at
reason for continuing home own¬
the
expiration of the offer on
ership, may not be as realistic as
June 20.
Blyth
&
Co.,
The
company
concur¬
rently is offering its regular em¬
ployees and those of its subsid¬
iaries the privilege of subscribing
for
27,546 other shares at the
price.
same
we
to
1955-57.
five
for
including
of
The
many
of
outstanding
existence
that
less
than
perhaps
one-quarter
as
as
these
of
mortgages have been issued since
the beginning
Another
of 1954.
Cloud
on
This
is
another
cloud
the
on
large enough to watch with some
Impact
of
has been made that the only valid
criticism
of
enterprise
of
system
our
capitalism
is
free
the
in¬
flexibility of debt and it is quite
that
it
makes
difference
no
how money was obtained
no
all
wants it back.
one
the difference in
long
so
It makes
the world
at
that time whether the money was
from
obtained
The
creditor.
debts
partner
a
total
sum
or
a
all
of
(aside from the U. S. Gov¬
ernment debt) owed
individuals
and
by businesses
the
at
present
time stands at about $325
about
billion
$50
total
self.
of the
debt
We
that
our
and
debt
government, it¬
since ceased to
ability to pay
long
about
worry
we
are only
ability to pay
now
concerned about
our
the
it
interest
that is
a
is
and
roll
to
it
due.
Perhaps
safe assumption as far as
nation
ual
on
when it
over
billion,
than the
more
comes
is concerned
far
as
but
is
it
the individ¬
as
It has just been established that
home
debt
mortgage
rupled
since
the
has
end
quad¬
of
World
debt
from $5.6 billion to approximately
and
its
electric
subsid¬
and
gas
which
home
mortgages have been issued
not have been
as
may
wise and sound
it
1953.
$8,404,000.
46%
for
14%
{Special to The Financial Chronicle)
BOSTON, Mass.
has
—
been
Coffin
State
&
Theodore E.
added
to
the
Burr, Incorpo¬
Street, members
of the Boston Stock Exchange.
Also, in March of this year
of all VA loans were made
thirty
a
mid-1953.
business
motion
years,
year
The
is
of
ownership.
compared
earlier
and
in
Savings and Loan
dedicated to
thrift
If
with
2%
the pro¬
and., of
homes
are
home
being
sold in increasing percentages on
a
consumer
more
rapidly,
$33 billion, while installment debt
has increased from $2 billion to
nearly $23 billion.
row's
Dis¬
income
in
the
saving
amount,
$21.8
of
8.6% of that
was
at an
or
billion.
1955
the
running
$252:fcillion.
nnual rate of
Personal
In
annual rate of
the first quarter
disposable income
rate
at
was
of
$260.6 billion,, an in¬
31/3%> but personal sav¬
ing was 7.2% of that amount, or
$18.7 million, a decrease of $3.1
billion, or 14%.
of
crease
people
saving
a
little
The
We
income, which
the
nation
What
more.
to
are
does
thrift
the
this
institution?
of
rate
saving in the first
1954, as stated above,
quarter of
was
of
little less and spending
a
mean
$21.8 billion.
ing for the
The actual
sav¬
turned out to be
Of this $2.7 billion
year
$19.5 billion.
was
in demand
lion
in
and
$4.5
loan
deposits, $4.4 bil¬
savings deposits
billion in savings and
time
and
If
associations.
decrease
in
the
of
rate
saving, just
cited, continues through the year
personal
it will represent about two-thirds
of
last
year's total increase in
savings and loan savings accounts
and
about the
percentage of
savings deposits.
same
all the time and
These
the
are
institutions
things the thrift
be
thinking
should
about, nationally. The associations
in
the
great Pacific Northwest
and in
a
substantial section of the
Midwest
are
situated
than
whole.
much
The
much
nation
trends
as
a
running
are
elsewhere.
strongly
more
favorably
more
the
is
not reach your area
before they have run their course
may
and I
am
glad to wind
cussion—which
provocative
that
it
demic
up
this dis¬
meant
to
be
with the statement
—
might
was
prove
interest, to
of only
this
aca¬
particular
audience.
With Shaw, Hooker
buying
tomor¬
means that
are
satisfactions with
today's
rep¬
audience.
personal
a
They
concerned?
has increased much
under
terms
an
The
in
the
at
Debt
Carrying the discussion of debt
just a little further, the statement
as
been felt by
Association
this
Declining Savings Hate
The
true
is
first quarter of 1954 was
concern.
burdensome, but the recent change
as
60
are
promoting home ownership, with
all that it entails, or home oc¬
cupancy,
which involves a very
limited
sense
of
responsibility.
boon to the lender and
a
appeared when first pro¬
wholly within the State
including the capital posed. In March of this year about
city of Denver. Consolidated oper¬ 45% of the VA loans were made
with no down payment, compared
ating revenues for the 12 months
ended March 31, 1955, amounted with less than 20% a year earlier
to $67,321,000 and net income was and less than 10% during most of
rated,
as
more than 200,000 kilo¬
generating capacity.
service
of
Associations
your
equally safe
Horizon
of Colorado,
staff
doubt
grave
War II. Short-term
supply
Andrews
dwellings,
same
for
room
whether
to
of what it would
the
rent
there is
the
self-amortizing home loan
has been
to
cost
represent not much
60%
term mortgages have not been too
electric
company
iaries
great
now
and
years
The
than
facilities
additional
watts
in
been
a
Major item in the pro¬ to the borrower, as well, and the
a
$61,000,000 allocation monthly payments on these long-
is
gram
mortgages
have
the company's proposed construc¬
tion
program
under which ap¬
proximately $80,00Q,000 will be
expended during the three years,
that
assume
the
much
Proceeds from the two offerings
will be used in connection with
believed. It is reasonable
had
which
terms
more
has
every
in
posable
$75.9 billion in 1954.
$93 billion of mortgage loans
made
offered
an
is
the
which
resented
which
trend
elements of dan¬
some
practically
horizon—not large, to be sure, but
rec¬
being
are
one
result.
end
In this connection it is
Holders
no
benefit from
debt has increased from $18.5 bil¬
lion in 1946, to $37.5 billion in
Bankers Underwrite
another
is
and
ger
at¬
an
page
developing
mosphere of security, Europe will
object to any American attempt
to stop any
on
(left to right): John
Back Row
be free not
sense.
Tacoma, Wash., offices of Dean Witter & Co., left Seattle May 20 for a spring party
a week end devoted to golf,
tennis, and swimming, they returned by Trans
May 22.
After
Canada Air Lines
side,
the Eqst.
in
having
countries
neutral
of
western
will
bloc
The trou¬
that
trouble,
one
its
hand
on
they should have been con¬
is,
on
prep¬
warfare
nuclear
on
centrated
ble
defense
our
Coffin & Burr Add
commence
We must take the situation
detente
Western
forthcoming Big Four
cannot
bickering
mean:
rest
ments reduced in order to end the
conference:
"We
to
dollars, at least,
to withdraw from
the
and
that
from
the
and
should
we
understood
was
Germany
out in reparations).
squeeezed
think
problem
cal
stay in office.
is exactly the
That
tria.
the
neutralized
obvious now, if it was
be
I
arms.
approach
angle."
(Special to The Financial Chronicle)
SAN
FRANCISCO,
Calif-
tomorrow's income must continue
Francis R.
at
filiated with Shaw, Hooker & Co.,
approximately today's rate be¬
the
cause
amortization
and
debt
now
the
of
total
sum
on
of
interest
the personal
represents about 14V2%
total
Vrhat figure
disposable, income.
be the dan¬
certainly com¬
pares unfavorably with 12.2% in
1951 and 6.2% in 1946.
ger
point
There
watch
in
activity
Montgomery
the
San
has
become
Street,
Francisco
change. Mr. Little
was
af¬
members
Stock
Ex¬
previously
with Reynolds & Co.
may not
but
are
1
of
Little
it
some
of the things to
respect to the
of the
lending
thrift institution.
With Bache & Co.
(Special to The Financial Chronicle)
.
CHICAGO,
111.
—
Frank
De-
Vuono has become associated with
Bache &
Street.
Co., 135 South La Salle
Volume 181
Number 5436
Continued
from
.
The Commercial and Financial Chronicle
,
,
Europe might well triple its
4
page
(2653)
mestic production
1975.
Oil's Bright Future
However,
that
it
matter
no
efforts
certain
seems
how
increase
to
do¬
of crude oil by
As
these
nations
economies—in
IovpIc
rebuilt
most
hTcrhor
better
increase^
their
instances
their
for
Europe's
oil
con-
/
1Q0/^ tXar?£'
+v?
?
need there for
ic° ?viW'
tne 'VsrK?3?
runner level of oil
«;i
♦
^ w £
J5L.T
*
j
u
dustry
see™S
«
demand,
arrangements
arrangements
wh.ch
-
the
the
--
the
problem
immediate
became
Local
a
local
where
pro¬
duction
from countries havinS
inadequate.
this
20%
governments
ways
to
reduce
One
to
for
press
local
the
the
construction
refineries.
struction
has
And
taken
such
of
con-
place—in the
United
Kingdom,
the
Benelux
countries,
Italy,
South
Africa,
India, Japan, Australia, Brazil and
elsewhere.
possible
These
to
through
plants
meet
local
prospected
w0ldd
wona,
country
0ther
otnei
any
.
.
re-
.
,
in
course
the
seems
,
than any other area, the countries
will be interested
Company's recent studies
our
'
.
_
consumption
energy
63%
States,
between
use
to
bv
grow
and
now
of oil
tion of different fuels to the total
picture
energy
that
at
as wood
and wastes, oil
-ft2
supplies more than 70% of
energy
0,7
Latin
will
time
probably be in approximately the
proportions as at present,
that
will
be
interested
know
to
think that after 1980 oil's
we
proportion
will
with
grow
,.
,,
„
America's energy.
It
seems
reasonable to
n0w
with
gj^d
is
total
of
if
This
year.
a
means
that
capita consumption of
per
stooT
enerey
is
the U. S. total,
at the rate of
increasing
2\fz%
r»ven
10%
population
still
the
ments would increase
rcwire-
by one-half
the next 20 years.
in
In
can
on
it is pretty safe to count
capita consumption of
per
en¬
We estimate that the
rising.
ergy
combination of population growth
rather than finished
products,
which latter cost
more, of course,
energy, natural gas will lose some
position as reserves are depleted
Importing crude and refining
locally versus importing finished
and prices tend to rise. Coal will
mean that by 1975 Latin
slowly recover to a level a bit America will be using 3,200,000
over
500,000,000
tons
by
1975;-■barrels of ml daily as contrasted
um
products will
save
from 25 to 40%
in
S
brr
foreign exchange. Another step
has been to intensify the search
about
demand as the
coal industry experienced directly
significant
as
for
after
place
crude
where
with notable
There the
oil
this
deposits.
has
One
been
done
is in France,
success
French affiliate
of
the
Jersey Company has brought in
field
45
which
miles
south
promises
of
to
a
of
great
help in providing France with its
own
supplies of liquid energy.
Crude oil discoveries in
show
some
Italy also
promise.
The
discovery of oil in
places since World War II
new
in
—
western
Canada, the Middle East,
and in such areas as
France—plus,
in the refining branch of the busi¬
the
ness,
construction
of
plants by Jersey affiliates
new
well
as
other companies in the
industry — has brought about a
as
many
marked change in the world-wide
of the oil business.
One
effect has been that exports of oil
from the U. S., which was once a
nvr\Ai*fo»i
nrmmnoi
tnvliinl Nr
n o irn
principal exporter, have virtually
dried up except for various special products which are exported
in
relatively
small
volume,
fact, our country, which
largest user of oil in the
and accounts for
in
the
is
w°rld
half of total
over
has
reserves,
now
become
a
net oil
importer.
It
likely
seems
continue
nation.
at
that
appear
quesne Power Company's, near
Pittsburgh,
get
into
operation,
Atomic power for ships may begin to find practical applications
to
be
Oil
oil-importing
an
U.
S.
are
all-time high level—some 32
an
billion barrels—but
tion
in
reserves
also at
is
tained
level
for
of
a
record
levels.
has
good
many
underground oil
years
a
current rate of
be
to
our
known
at
reserves
some
supply related to the
years
seems
The
main-
exploration and develop-
ment which maintains
10-12
consump-
industry
oil
domestic
our
consumption.
about
the
reserve
the industry
carry.
To
replenish
This
maximum
can
afford to
the
under-
ground
inventory is a constant
tasj;. Probably few people visuallze the amount of oil that is used
in
the
year
United
States
alone.
Last
the
barrels.
figure was 2.8 billion
This is equivalent to the
present proved crude oil reserves
of the entire state of Louisiana. In
other
such
'words, to compensate for
consumption of oil, the in-
oil production of Venezuela. So
within the southern part of our
hemisphere in the next score of
years a tremendous expansion of
crude oil producing and refining,
transportation, and marketing fa-cilities will be required to satisfy
local demand and provide necesother
exports to
consuming areas,
sary
It is much
for
called
well.
as
doubt that
fl
,
:
,
oil
domestic
as
There
is
little
all oil companies are
as
shoulder
to
greater
supply burdens, the international
upon
character of the industry will be¬
come
pronounced.
more
Coun¬
tries will not be isolated
Timothy D. Spillane
self-
as
contained
producing and consumcenters, nor
will they
be
ing
chiefly
pliers
the
role
customers
With
ization
even
in
cast
or
today.
supmany
industrial-
growing
social
and
of
are
as
world
a
formerly with J. A. Hogle
-
at
Inherent
an
the
nature
industry, where very large
supplies may be found one year
and very little for the next several years, are periods of oversupply, and then for a time sellWe
are
over-supply
some
continue, for
may
But
more.
in
period
which
a
now,
a year or so
the picture I
think
I
have given you is convincing that
over
the long pull
the world's
demand
in
for
total
particular, is
need
never
not have
a
and
great that
oil
energy,
so
fear
ETaIa
L
■
iB
i
DAAArgl Rotfjcfrgf |Q£]
the
of
oil
of
A|
j
I,¥WWI H
present.
in
& Co.
Ai BOHll IllUw r6IC
ere-
pattern
energy
much less spotty than the one we
even
Calif.—Tim D.
Spillane has become associated
with Blyth & Co., Inc., 215 West
sixth
Street.
Mr. Spillane was
de¬
tend to
supply will
geographically, thus
out
LOS ANGELES,
progress,
and
have
we
industry does
bright future.
our
ANGELES,
LOS
Bond
of Los
Club
Calif. — The
Angeles Field
to be held June 10, at the
Country
Club,
Pacific
Day,
Riviera
the greatest
participation in the
history of this annual event, Field
Day Chairman Wm. D. Witherspoon,
of Wither spoon & Cornpany, Inc., announced,
will have
Palisades,
membership
b
Competitive events of the day
in at 8.30 when golfers tee off.
baseball game is
A
include, tennis, ping
and putting.
gh
members
scheduled for
events will
other
and
2.00
all
Joins Rex Merrick
will
pong, horseA dinner for
conclude this
yearly gathering.
(Special to The Financial Chronicle)
SAN MATEO, Calif.—George A.
McQuillister
ciated
22
has
with
Second
lister
become
Rex
&
Mr.
formerly
Inc.
Co.,
&
McQuil¬
King
Cantor,
with
and
(Special
—
Ralph
FRANCISCO, Calif.—For
Annual
Workshop" in
Fresno, June 10-12, personnel of
H.
L.
Jamieson Co., Inc., will
gather from its regional bases in
Meetings will be held
Hacienda.
at The
to The Financial Chronicle)
111.
SAN
its "Second
California.
Joins Harris, Upham
CHICAGO,
Hold
Workshop for Personnel
Co.,
Fitzgerald & Co.
pfe-
H. L. Jamieson to
asso¬
Merrick
Avenue.
was
Merritt
tributary
difficult to
more
A
Discussion leaders
N.
participating
Parks, Los Angeles;
spite an allowance for a fairly
Captain Charles W. Scribner, Rob¬
Harris, Upham & Co., 135 South
rapid rate of growth, it seems die East, the Far East, and Africa
ert Horth and Bing Wong, San
La Salle Street.
likely that the atom's contribution are relatively undeveloped as enFrancisco; J. R. T. Montin, Oak¬
to U. S. over-all energy needs in ergy users,
holding 60% of the
land the East Bay; Jess T. Wolfe,
1975 will amount only to about globe's population and presentlv
Calif. Investors Add
Santa Rosa, and Anders Montin,
at
the
about
1.5%
the total.
of
will
time.
same
Nuclear
probably find
-n the field
uge
de-
But
their
fuels
greatest
of electric power
generation, with
out of every
three new generating plants built
at the time relying on this energy
one
-
We
source.
do
foresee
not
that
potential 'ener'gTTources
sucj1
as
etc
wilj
tban
diet the potential
for the remaining parts of the world. The Mid-
consuming
millions
of
barrels
for all forms
the
see
Looking
other
at
the
have
I
to oil
as
more
and more
expect this movement to continue,
Granting the most optimistic
dictions
the
as
well
as
the
ceivable
pre-
to the development
nuclear
in Europe,
power
of every
success
effort
to
of
as
con-
the
improve
output of coal, the tremendous increase in total demand for energy
there forecasts
oil.
oil
rate
We
will
of
grow
about
next 20 years,
the
European
a
a
The
fact
that
in
oil
(Par
would
Offering Price: 25c Per Share
increased
by itself
mean,
a
and
1000
It is
idea
of the magnitude of
crease,
that
the
will
new
be
needed
some
this in-
supplies
alone
in
1975
amount to only 20% less than last
year's dpilv production
from
the
entire Middle East.
We
are
confident
in
healthy oil industry. Countries
both hemispheres are modify-
operating uranium-vanadium properties totaling over
acres in Montrose and San Miguel Counties, Colorado.
now
in its exploratory stage.
may
be obtained from the undersigned.
GARDEN STATE SECURITIES
89
policies
if
the
political climate is right, Western
more
favorable
to
the
Hoboken, New Jersey
Washington Street
SWarthmore 2-0633
Please
Ibex
send
me
Uranium,
copy
of
the
Offering
Circular
Ine.
Name:
encouragement of the large-scale
investment
oil
modern
necessary
industry.
for
the
Gradually,
too, there is coming to be
nition
that
in the
Offering Circular
ing oil restrictions or setting new
you
engaging
the
at the
To give
incorporated for the purpose
business of exploring for, developing
Business: The company was
of
socialistic tendencies
or
inhibit
consuming 4,580,000 barrels a day
as compared wth 2,174,000 barrels
present.
that
blocked
"Rags"
Value 10^ Per Share)
ize the factors which bring about
for the
which would
plans, and
Creek.
Wyoming Corporation)
(A
an
expanding oil business, particularly in the producing phase,
is
very
susceptible to political
conditions. To be specific, in many
parts of the world extreme na-
could
and
IBEX URANIUM, ING.
of course, that they will be available. I have indicated earlier that
tionalistic
progress
Montin, of Walnut
.
supplies will
greatly
amounts does not
40
Speakers at the climax banquet
Jamieson, reviewing
will be H. L.
1,200,000 Shares Common Stock
be
compounded
year
market
New Issue
needs,
mean
that
at
4%
Investors,
the
just to keep
discovery and
development of oil deposits,
But here, again, we are inclined
to be optimistic.
There is growing evidence that people and their
governments are coming to real-
bright future for
demand for
a
expect
California
to
Atlantic Boulevard.
them-
exert
fullest
added
The Political Situation
no
energy source, and we
an
to
abreast of the world's
the
less
already inare
of
been
of
parts
prospects
staff
has
is
have
the
t
Cotte
Napa.
Calif.—George
BEACH,
every
prospects, you
plenty of room
of energy and all of
there
will
selves
world,
oil
Faced with such
them
Needs of Western Europe
of
C.
to The Financial Chronicle)
include Robert
additional
day.
can
to
for
market
a
negRgible amount
a
(Special
LONG
capita rise in those areas will
obviously result in a substantial
increase
in
total
demand,
and
solar energy, heat pumps,
be
contributing more
over_aR energy picture.
the
of
per
create
Peters has become associated with
The slightest
10%
only
world's total energy.
dic£ded. h°w Western Europe is be needed
will
we
domestic
that
from nuclear reactors will
begin to be available in the late
1950's when units like the Du-
power
beginning to turn
would
It
en-
ergy market.
encouraging.
Record High Consumption
.
electric
-
position in the over-all
some
world
consumption while having
only 20% of the world s proved
Hydro
war.
power will have only a moderate
expansion, and will probably lose
Bordeaux
be
the
no
O
....
they are for companies like Jer¬
sey Standard which have overseas
The increase of 2,000,000 barrels a day equals the present daily
local
same
by
companies in the United States
tbe Present use °* 1,400,000
barrels a day-
the
9
(g |f0i llll U02SI
,
These signs of improvement are
er's markets.
the expanding Latin Ameri¬
area
IL
,
that they will continue to improve.
ating
American
Dl
is "tion-
,
perfect'. But the horizons
brightening and give us hope,
mand
Latin
CmiII*ma Willi
especial^-'**" |j|y||l
—
oil
industry
Conditions " are
cerned.
are
expect that oil will
continue to hold the same, or an
same
You
are
future
on liquid energy. Not taking into account such sources of
expect
we
1975, with
increasing from the
present 8,200,000 barrels a day to
13,300,000 barrels. The contributhe
and
even
,
Demand
In the United
present
progress
the
VI
I llll Ui OpillcHlG Willi
on
means
greater share of the energy
picture in 1975.
the future demand for energy,
Future
their
growth
now
I believe you
it
importing crude petrole-
proven
■Shortsighted,
shortsighted.
:ry
needs
make
oil
world's
a
basing
other
outlays of
exchange for puichases of
step they have taken is
dollar
of
country's
interests
the
are
of Central and South America
on
sought
'
....
dramatic
more
tial oil-bearing area, coupled with
tbe £a(d tbe £j g
the mosj- high-
in
their
America
Latin America
Even
serves, 15% of the world's poten-
situation, for¬
eign
Latin
a
surplus possibilities that lie south of our
over their own needs* With 54 % border in the expanding Latin
of the w0rld's oil consumption, American economy. Almost more
post-war
Refineries
with
year
domestlc reserves by
our
„
Faced
oil.
.
,
trade
trade
solved
find—every
m0Si des^able t0 SUPuple"
meiH
a
at
must
reasonable amount of oil imports
began to
needs
Western
to
rtr-I
tVian
war—and^s'their people
live
lot
a
usually act to put the brakes
vigorously
the
of Western Europe are
pushed, massive imports will still
of doing," but'the net result was
another Louisiana.
be required.
These may well run
that the have-not nations (both
I have no doubt that the indus- into the neighborhood o£,4,O0t),"have? not" as to oil and "have try will be able to maintain ade- 000 barrels a day^ a fifure which
not'?;as to dollars) did get oil, and Quate domestic reserves for many is copaparable to the entire protheir; post-war recovery is a mat-,years; but, on account of our^vfiry^dtrction of the United States
only
ter of history.
htgtr level - of - consumption, it 12 years ago.
for odr stockholders: It took
not always bring about the bene-'
fits
they are supposed
to but
21
a recog-
restrictive
currencies,
Address:
.
City:
taxes,
quotas,
and
other discriminatory practices do
Telephone:
.Zone:
.State:
relating
to
<">9
The Commercial and Financial Chronicle
(2654)
Continued from page
You
7
istration
While babies do not
stock
It is true, of course, that the
market crash and the business de¬
pression
which
followed
pro¬
longed the real estate depression.
in
living
typically
were
to family formation.
two-bedroom
became
We did dur¬
respect exactly what we are doing
Toe residential real estate
begun to decline be¬
market had
the
fore
1929.
stock
I
tending
of
crash
market
still
can
remember
at¬
meeting of the Harvard
a
Keonomic Society here in-this city
5 r
1929
vhen the
late
William
buy houses
immediate
houses.
space.
With
the
third,
second,
and often fourth child these homes
A survey
tains three bedrooms and is larger
in
almost
than its
respect
every
counterpart. Births last year
1950
again
set
million.
4
were
Almost
of it!
think
Just
baby for
new
one
There
record.
new
a
every
residences
i,ojes,
churches.''
r.
early
As
ten
to
years
took
it
know,
we
grow
Whi'e
over-built
we
in
houses
relation to family for¬
in
mations, to an even greater extent
\j0
under-built them during the
<>0 9 and 40's so that if we add up
the
1920
decades,
three
1949,
to
yennd that we only built four
booses for every five new house¬
holds
which
formed
were
change from
(1)
one
moving from the city to
(2)
suburbs
nounced
Americans
certain
in
shortages
there
when
even
as
This
every year.
of housing
surplus
a
nation
M.
fbut
we
in
whole.
a
the
Association:
Builders'
Home
backlog of de¬ "There is almost an insatiable
mand from the underbuilding of demand for housing at this time,
1 .if,"-(J's and 40's has not yet been ample financing is available
But if the
j
ma can
}
r
t
family
started
But
trouble,
because
bhnUy formation is
new
vhli
continue
at
far below
and
now
immediate postwar
Hie
years
relatively
low
market
volume
large
houses
new
causing
the
and
a
for
build two
ve
every
\7x-.ro-
Not for
of building.
rate
(aceui
be at the
will
soon
of
long time."
a
it
is
sustain
can
building
new
I don't doubt it.
observation
common
a
that while everyone wants a
automobile
illac
afford
can
into
demand
denends
actual
on
sus¬
.
while
..Fortunately,
m: .tion
for
homes, it is by
the only one.
The
de'ma-id.
no
means
1950
years
9hi-tv years is, of course, an ar¬
dividing
bitrary
with
condition
ahead.
(
f
a
older
would
call
for
This
is
obsolescence
is
house
useful life
of only 1%
each
a
worn
year
200,003
over
the
is
many
in good
long,
homes
units.
the
are
Replacement
uiese
for
line,
than this
homes older
new
where
number
physical
fact;
There
out.
in addition, obsolescence
is,
through
changing tastes. An ever-increas¬
ing percentage of our adult popu¬
lation is
em,
accustomed
the
pute
its
the mod¬
efficient home.
more
group
to
typical
re ative
long -standing
To this
old house,
roominess
landscaping,
is
a
growing
unemploy¬
and
materially increase is rather
home
the
Among
have
dissatisfac¬
principal
been
chiefly
causes
respon¬
termduring
and which has
gage money on easy
the past two years
made
possible the building
boom
are:
(1) The increase in GI mortgage
removed
crease
jection
which
the
principal ob¬
had
lenders
many
to GI loans.
(2)
The
liberalization
FHA
of
terms contained in the 1954 Hous¬
long-term
the
bonds which
latter
part
of
began
1953
and
which made mortgage loans more
attractive.
of
(4) The remarkable increase in
bulks large
savings
standing Joans,
mand
which
older
metropolitan
areas.
Tne present occupant is les$ pvsfive
>han
his
forebears
in
his
acceptance of this type of housing,
end so long as he can borrow the
to buy a better house he
rooauly will buy it.
In
past
people
lending
allowance
mortgages
seems
situation
be
may
by saying that over
two years substantially
.gainst the background of lower
family formation and giving due
substandard housing, still it
the
summarized
more
ana
Lenders More
government
became
evidence
for
quiring
a
than
There
year
a
attention
the
well
place
ket
a
for
wherq it
exceed
w
has
but
v
recent
the
record
baby
from the
whether
building
is
slowly and lasts for
usually continues
all
fundamental
types
ac-
■
credit
of
and/or
con-
authorities
credit
will
policy
The
the
in
of
rest
our
the
near
tend
be
to
period
and
more
in favor of the lender rather
than the borrower.
Rate Trend Upward
upward
has
trend
been
in
evident
in
both
ties since the turn of the year.
In
mid-December the long-term 3V4S
of 1978-83 were still selling above
Currently, they
are
down to
Similarly, from the end of
to
the
beginning
of
March the yield on 90-day Treas-
bills increased from 0.90% to
The Dow-Jones yield inof 20
municipal bonds has
risen
during
2.20%-
this
to
period
from
nearly 2.45%.
rial paper were marked up by y8-
sured
and
from
their
rising
sonal incomes.
per¬
if
it
and
finds
are
guaranteed
that
such
is
mortgages
the
case.
authorization
up
V4% in January for the first time
in
,-*1.
-
19
months,
and
recently they
meet the
to
carry¬
the
on
statistics
reliable
are
total
debt
mortgage
out-
its
increase in
b^cked
mortgage
payout
period
in
its
lending
au-
now
lenders.
which
its
head
I
mortgage
Originally
under-
loans
ir-
supposedly
temstimulant, the
government-sponsored, long-term,
a
economic
porary
low-equity mortgage has now become standard in
real estate financing. Many mortgage lenders,
vividly recalling the collapse of
real
prices
estate
and
dim
view
They
gage.
but
of
do
so
genuine
differ
with
concern.
over
should
this
may
be
both
the
mass
1930's, take
foreclosures of the
type
of
a
rrort-
make these loans
reluctance
and
While opinions
equity that
the
required
and
longer
relatively
the
the
ma-
carrying
present
charges in relation to inco—e may
be
time
«22 billion,
l°ans-
all
its
its
Impact of Carrying Charges
Y/hile
increase
take toward these long-term,
*ow equity mortgages' Should we
fcuy them. willy-nilly without mspeetion just because some government agency insures or guarantees them? Or do we have a
responsibility to pass upon them,
see tnat the houses are well
anc^ that tne purchasers have
adequate incomes to carry their
writes
with
and
low interest rate.
congress recently was asked
billion
the +e>tM debt because
of greater use of the eoveroment-
fast
so
so.
interest
tion,
There
has been using
agency
respective of government guaran¬
tees.
I think it is our duty to do
Bankers' acceptances and commer-
excessive.
1954,
billion
institution
will
a
indications
years,
recrd-breaking
over
market
ury
borrowers
For 1955 it is ex- hke'v. however, that the propor¬
the total volume of tionate rise in the carrying charges
advance by about has been somewhat less t^an the
that
in which the balance in the money
therefore, is likely to be
110.
the
important than the
the total mortgage
outstanding is the ability of
excess
I want to say here, however,
that personally I think we do have
such a responsibility and t at the
year,
it may stiffen the terms of its in¬
or
in
^ is a moot question and
change there is no unanimity on it among
that
days of
starding there are no official fig¬
requests filed in ures on its carrying costs. It seems
121%
In view of these huge increases,
what Position as lenders ought we
and
increased mobility of our popula¬
mops
than
more
to
1.41%.
home
and
appraisal
^5
of
money
governmental
the
in
too
CVPr
decrease
November
than
2,200
to ap-rove an emergency
booming, with t'~e level
high and with stock
prices steadily going up. it is r^t
likely that the demand for cred't
106%.
.
is
that
business
rates
debt
st?nc,s at
a
in
more
rise
and
With
The
Even
rapid
burdensome
hr>rroTT",rs.
in
or
future.
This
before
even
totaf authorization
is
1hat
608s.
30th
there
will
the
insurance
struction
of
them
parity to keep it going until June
comes
third
even
wide
so
was
and
time
tivity
December
t
Any fundamental ch^n^e of tMs
until
months.
jn SUCh mortgages. A similar situati0n exists for FHA. In fact,
firming
tended
high
a
many cases
that
indication
whcn lenders invested $4.3
rise
nature
mortgages
tighter,
have
1920s
late
and
second
of
not
securities
mort¬
the
of
the
in
equity in the first mortgage
use
the
Loans
government gu ir-
was
toans
equa s
unmistakably,
growing
on
similar
been
examination
picture
wou7d disclose that despite
seen
actUally
-7i/2%
consequence,
have
9j
gage.
bonds,, mortgages
been
yields
a
his
on
risks, are
the
full point
a
few
next
be
pected
actually threatens
As
rates
around
from
it.
than was done in the 1920's
ability to carry his mort¬
gree
january> 19^4.
invent-
only
not
of
0f
as
incJudm£ m?rt?ages, since
/ ^ has risen to tfor
demand e
funds
point
gagor's a finances may not be
very thorough, nevertheless they
do focus attention to a greater de¬
book
VA
and
every
jn
g-term
the supplv, but
GI
is
the
ure
which his
fixed-income
mort¬
FHA and VA checks on the
jsting homes in January; the fig- whiTe there
^rn
1
lo
mine
stemming
demand
all
called for in¬
principal payments and
those called for were often hon¬
ored more in the breach than in
the observance. Further, although
frequent
in the fact that the ing charges on their loans. Here
VA
received
appraisal requests is the real heart cf the present
for over 75000 prop0sed and ex- mortgage problem. Unfortunately,
there has been taking
basic change in tne mar-(
dex
importantly
borrower
in
the late years
the 1920's mortgages
in
may
fact,
n
at
covering
or
credit
hands
volume
£0r
type of job held
locality
very
but increasing rapidly
sure
careful
anteed loans will increase at least
many
prospective
The government is now study¬
ing the housing situation to deter¬
rests
replacement
re-
the
as
be
repayment of
small at first to
in
of the mortgage. In
periodic
principal,
noted that this equity was not as
opinion t e going
fairly good VA loans large in the 1920s as it seemed. A
doubtful
There
the
hcuse is built.
building
boom
the
payments,
amortizing mortgage forces a
ent
frequent
to 98 % and mortoriginating in less desirable gage
More
increased
ago, giving
to
on
insist-
°-
closely than they
more
and
investment
...,
im¬
one
the owner's real equity
virtually nonexistent. I sus¬
having a term of 25 years and
pect that there were apa-tments
w^h down payments of from 5 to
financed with little or no equity
^0%
underwriting all mort-
are
loans
were
that
a
least
at
the
was
Act.
°
that
my
changing
payment
cown
years
are
less'J1 of good VA loans
p"rch^dAf?r 98
one-half million
are
under
also evidence
is
lenders
gage
bv
larger
mandatorv
25
down
set-
now
slipped
more
long period
While still others
bonds.
large
to
and more
of time.
of
parts of the country,
increasing selectivity
of many lenders. Some
are now demanding discounts on
30-year no - down - pavment GI
loans.
Others
are
refusing
to
a
are
package of mortgages
a
In
gages
of
loans
comparatively
were
■,
has
_
make loars for such
offer
wise.
Selective
is more
other
and
Others
5%_io%
quotation for
the part
on
found
insured
institutions
attractive
more
eligible
is
provement" in
While much concern is mani¬
including both 30-year and 25fested over the low (or absence of)
year loans, are growing increasingly popular. Lenders have like- equity in the typical governmentmortgage,
it should be
wise been talking tougher price- backed
sources,
.
Recently there
inescapable that the present homeon
likely
are
maximum
a
on
ers
corporate and government seeuri-
brief,
the
obsolescence
they
in
compa-
Allocation schemes, in which sell-
the de-
as
insurance
maturities.
jng
rather
quate rates.
money
for
the
to keen t' e funds invested at ade¬
3:
>
well
as
have for funds from other
unexpectedly large reoayrren+s fn
outstanding lo°ns. It was difficult
and
ting
their out-
repayments on
definite retreat
a
banks
VA
growth in their assets, the pros-
pective
for them,
par
institutions
Some
of
their
portfolios.
They must also consider the rate
more
deposits
a
versification
Reir
vJ) The decline in interest rates
in
nies,
savings
major lenders,
banks must consider the di-
ings
banking
ing Act.
Amortization Principle
there
But
the
particular,
these generous terms is
progress among
which
policy.
particularly
the
from
bonds, but also to the extent
they are already committed to make mortgages.
After
all, insurance companies and savto
paying
were
Today, however,
not
change in the level of business
This in¬
using that still
in
with
required down payment.
Ui many major cities,
no
mortgage
4V2%, to¬
gether with the reduction in the
tion with the definitely substananra
some
only to the relative
yields obtainable from mortgages
some
interest rate from 4% to
In
life insurance companies, in their
is
lending institution. Lending instiare giving serious consid-
s
for the availability cf mort¬
sible
on
ana
is not
think
tutions
interest
which
affected
market.
very
that
for
eration
to
Sources of Building Boom
de¬
appealing.
There
off
income
an¬
nation's
old.
the
30
national
frightening to contemplate.
found
census
half
over
were
ment
the
fall
should
factor in housing
virtually
homes
for-
Obsolescence is
other important
that
family
is the largest single market
new
if
happen
has
expect,
mortgage
mortgage loans. Already in some
localities speculative builders are
mortgage terms. What would
easy
Yardstick
discontinued.
be
;
drastic, lenders-eagerness to build up their porthave the power to reduce the pres-- folios, opened their books wide to
ent level of home building if they 30-year,
no-down-payment
VA
become more selective in making loans. At the peak of the market
tained high personal incomes and
Family Formation Only One
do ""hot
I
likely to be
The translation of
one.
latent
this
Cad¬
evervbodv
not
housing demand
levels uniil the 1960's.
would
practice and should
sound lending
The
that
found housing surpluses in
implications
five
Administrator Albert
Co'e said in his speech before
period.
\70raed off it
stated
is
is
Thursday, June 9, 1955
.
governmentunderwritten mortgage oyer the
those areas.
there has been a marked tightentypical mortgage of the 1920's,
But ..regardless
of government ing in the market for VA mortnamely, amortization. The pres¬
action, wTTteh-hgcause of political gages. Last fall several of the large
con¬
of
out
to
Recently
this
c'eficir.
because it
areas
There
money
The rise in interest rates, as one
pro¬
shifts
Gne
housing
cities
be
may
the
two
These
move
make
older
an
populational
Unabated.
tinue
can
from
or
suburb.
newer
a
during
Some students think
still haven't made up this
takes
population
city to another, usually because of
health, retirement, or change in
the
what had been built.
the 20's
forms:
two
to job,
up
of
Mobility
respect;
buildings,
and even
office
rtments,
rrp a
getting tighter.
future
on
vs.
12 houses in one year alone. So
Hamilton,
Editor of the
far as an increase in population
Street
Journal/' a canny
Bfoisman whom many bankers no encourages new building, the
('cunt still recall, saying, "At last country is lacking nothing in this
I have lived to see New York respect.
every
halt
a
of
finding that it is one thing to qualin Wilming¬
ify a purchaser for a government
ton today shows that the average
insured mortgage and
quite anfor-sale house now going up con¬
other thing to find an ultimate
inadequate.
"Wall
over-built in
ample
the houses being built
Peter
City
26
it had
Homes built
postwar years
the
My studies lead me to believe,
however, that during the 20's we
built too many houses in relation
ing the four years, 1925-29, in this
in
they certainly yell, loudly and long,
for more
called
increased again.
evidence that
were
guarantees in speculative building
low Dangerous Is the
Present Mortgage Situation?
today.
that last
Admin-
noticed
probably
week the Federal Housing
.
.
ust
mindful
be
debt
y*~
is
only
for
most
the
at
that
same
mortgage
of several ele¬
ments in the personal debt struc¬
ture.
Since
sonal
debt
clear
that
one
other
forms
also
are
of
rising,
per¬
it is
large
-
increasinglv
an
p°rt of the average family income
is
locked
in
by
reoavments.
loan
Consumer and instalment debt has
been
rise
showing
an
more
even
rapid
than mortgage debts.
DiFummces of opinon about the
desirability
backed
arise from
nomic
of
the
government-
mortgage often
a
and
appear
conflict between
sociological
to
eco¬
thinking.
Mapy persons who are symnatheic
to the
and
problems of young families,
vitally interested in the na¬
tion's progress feel that these gen¬
terms
erous
borrower
may
the
doing
be
disservice
by overstimu'^Hng hoi-smg and bv en¬
couraging the borrower to assume
larger
meet.
lieve
obligations
than
he
can
Others, equally sincere, be¬
strongly ttrt
as
liberal
terms
excesses
to
a
even
result
do
and in forcing
budget c'osely they
if these
in
some
the family
are
increas¬
ing the nation's s'andard of jiving
and
strengthening i+s
economy
through wider home-ow ership.
As
betw°en these two
views, I
luavo
ycu
to
make
own
your
choice.
Conclusions
Mv conclusions
can now
marized somewhat
as
be
sum¬
foBows:
(1) We are not over-bui't. The
there is rather
that the no- present rate of house building,
It cannot
down-payment, 30-year mortgage however, is excessive.
is
too
great
a
deviation from long be maintained without causturity
general
allowed,
agreement
Volume 181
Number 5436
\
.
The Commercial and Financial Chronicle
"
'
h'
.
.
■'./
■
ing trouble, undermining real
tate,
values
closures.
and
Vacancies
ing. 3 heir
es¬
increasing
fore¬
increas¬
are
extent, however, is not
serious
except in certain types of
apartments and in old-fashioned
anteed
near
izations
less
buildings
real
because
sense
they
in
a
represent
marginal housing, or at least hous¬
ing that does not meet today's
of
new
building units constructed
should not be taken
as
a
Large numbers
measure
build¬
new
of
dwellings
occupied after the war,
reo-
sub-marginal housing units.
of them are now
being
abandrn°d and wi'l
nrob^bly re¬
main
vacant from
now
on.
associa¬
prone
to
attitude
ments
here
is
not
Private
„
■„
~
f"*
,Xr
„
tailed
& Co. was elected President of
The Bond Club of New York for
discount
a
in
beginning of tae
the
loans.
If
L.ie
At
on
the
firming
high
take
level
conven¬
a
w
vi a.nw*
aii
»>*
}
Blancke Noyes
•
have
(9)
The
old
boom
boom within
and
and
widows, bachelors
young,
spinsters.
times
they
Given
a
In
less
lived
prosperous
with
relatives.
reasonably
high level of
activity, it is my belief
business
today
down
bad
demand
on
terms.
I
incomes
is
reduction from present levels of
about 250,000 to 300,000.
when
based
cheap—perhaps
upon
cheap—credit.
While few
would
see
like
to
the
long-term
government guaranteed
mortgage
abolished.
too
lenders
I
think
it
must be admitted
and
(5)
today.
moderate restrictions
We
selective
mortgages.
ment
GI
be
all
on
GI
100%
loan.
there
5%
a
should
note of
a
caution.
I
and
F^A
in
An
to
you
think
that
do
I
not
am
want
recom-
loans.
favor
I
the
of
individual
who
mending
that
mortgage
loans.
shown
that
stop
making
Experience has
you
well
a
selected
port-
folio of amortized
borrows the total value cf his col¬
lateral has nothing to lose when
mortgage loans
secured by owner-occupieu dwellings is one of the best investments
he
that
defaults
stance,
his
on
when
guarantees
loan.
the
In
sub¬
government
insures
or
loan which
a
represents approximately the full
value cf the property
securing the
same, the effect is to make the
mortgagor
in
ren+
(6)
rentor
a
paving
his
+he form of interest.
Amortization
loan
is
too
on
slow.
It
is
not
if
maintain
the
t^e
condition.
owner
property
This is
doubtful
down-payment
current
does
the
ahead.
long-term,
loan.
to
While
of
by
high of $75 billion.
is
dQbt
four-family
mortgage
billion
large
gages
by
debt
will
1956.
are
of
either
or
FHA insured
to
assume
that
be
An
percentage
finance
to
to
as
(7)
for
VA
so
the
over
increasingly
these mort¬
guaranteed
that it
is
security
safe
back
ere
much
too
and
the
homes
of
l
ing industry.
probably
this
We
*
new
members
of
Cluett
Harriman
of
elect-
were
W.
governors:
Ripley
Fenner & Beam,.
•
"[hey do not, oi course, compare
with
s1ze
case,
•
the
charge-offs
,
o:2
reserves
•
some
remembered that
on
that occasion
most of the large New York banks
<
period .had security affiliates
20-year
(now for¬
largo
period
when not
that time was on losses by the af~
filiates, with less applicable to
in
cry
the
middle
l93Q's,
of
proportion
than in the few immediately preceding years, but recoveries from
bad accounts began to be realized.
It
was
this
mat,
a
tne
as
eral, creditwise,
the
a'c
Furthermore,
are not
they
as
lib-
as
were
in
margins
wen)
banks; relatively thin and much
or
miding was practiced,
obvious to the
time
the leading banks
a very
charge-ofis
the
only were
the lean ;
losses of the banks much smaller losses on bad debts.
at
Co., Inc.; Charles J; Hodge of
Glore, Forgan & Co. and Norman
Smith of Merrill Lynch, Pierce,
pyra-
I920's
when
start
moving average
basis became later and later, bad
Treasury formula
changed to permit the
TltrftO Natttf PsflltfirO
I lid B6
I ttl IlltSI 2)
then C
was
i
roioilllljj WUj mwbbbu*)
the rise.
on
SfSfRliiv'
Ippfch(|t9k fjft
debt losses would decrease, while
of any
use
Pershing & Co., 120 Broadway,
20 years subsequent- jNew York City, members of tho
to 1927, at the bank's option, in-', ;vfew y0rk Stock
Exchange, an»
stead of the 20-year moving aver- '00unce that Andrew Gray, Otto E,
consecutive
age
ba^is, under which, in each'
succeeding
b
20
e
the first
year,
year
dropped for the
was
Kjhlmann and
Charles M. Lock-
of, wood have been admited
pur-
to
gen-
eraj
partnership in the firm. The
Approximately 200 golf players pose of the formula and a new new partners have been associated
will
compete this year m the "20th year was added.
" with the firm for man> years,
Bond
Club
Golf
Tournament,
This new ruling made it posAdmission of the new partners
which will
be
played over the sible for a bank to utilize the 20- was previously reported in tha
it
su
unwise
All
of
us
do
lendars
as
much
as
is
some
reason
make the terms of its guar¬
golf
of
credit
should
as
can
any
What tve future
us
may
I do not know
the government for
an
ex-
tended period of time continue to
over-liberal
p u r su e
credit
far
policies.
alarm,
however,
no
Ex
for
is
the
in
President's
for
Cup
Frederick
-
exercise of
T<
Mensell
Rutter
Christie
a8ainst
Cup
*
Match
10 •
Par:- Thomas
Play
Mann,
D.
lame
Glore, Forgan & Co., and
n/r'
r
Co.,
be
65
oPnrp
.
Bylth & Co., inc., and
O.' Rutter
joseph
*'irC+
i*™
Rnctnn
.
the
tennis
tournament, Paul
...
„
.
,irv.
_
Tim ,
Marvin Levy, Lehman
^hers ^Pn ove^rl??a^?
bu?"ne' Pacon'
a?-o1 o "
Wasserman A-el & Co
Heffernan, New
Yark
o
*'
a -sc?re
w
(social
to
The
BENICIA '
Bankers Trust
Bank of Manhattan—
Chemical
Jr.,
S.
fin.ncial
cikonicle)
•
..
fer
is
now
with
King
Merritt &
John
LOS
cf
The
ANGELES.
Harblnson
Los
staff
8 328 000
j p j\£0rgan & <jo., Inc.
BOSTON,
•
.
4,596,000
2,268,000
None
available.
fNedligible.
i
w
xT-
Ball
to The
Financial
ANGELES,
has
joined
n
j"rn
the
—
rir
Emil M
—
LOS
e#
Financial
Chronici )
Calif.—Phi
ANGELES,
Earnings & Liquidating
Value
L.
Malmin
has
Calif.—Philip
associated
become
Walston
&
Co.,
Comparison—1954 '
FIRE & CASUALTY
South
550
of
cnntb
Reynolds Adds to Staff
(Special
to
The Financial Chronicle)
OAKLAND, Calif.
210
Neary> Purcell & Co., 618 South
Peterson
has
Spring Street, members of the Los
staff
Reynolds
Angeles Stock Exchange.
INSURANCE STOCKS
Circular
on
Request
—
Members New York Stock Exchange
».
i
Members
American Stock
Exchange
120 BROADWAY, NEW YORK
Angeles Stock Exchange.
of
been
added
&
to
Co.,
the
1404
5,'N.
Telephone:, BArciay 7-3500
David J.
Franklin Street.
Henderson,
ap
has rejoined Sutro ch
Co.,
Van
Nuys
Building.
Mr.
Sperry has recently
been w:.hi
H. L. Jamieson & Co., Inc.
Sperry
to The Financial Chronicle)
ANGELES,
Street, members of
&
»
r*
&
c
to The
Laird, Bissell & Weeds
Mary
staff
Mass.
With Walston Gca
Chronicle)
Calif.
ci
Co.
Neary, Purcell Adds
(Special
.
(Special
Sharaf, and Angelo J.
rii
Lac.,
members
Joins butro &
$40,000,000
Public National
Devonshire Street.
I
MacDonald,
street
ropole is now with B. C. Mortal
& Co., 131 State Street.
Spring Street. Mr. Malmin was
...UVi
U/",W-,
V> i 11
previously with Hemphill, Noyes
& Co., and Shearson, Hammill &
.
&
lQth
B. C. Morton Ado^
5,500,000
National City
New York Trust
Burke
(Special to The Financial Chronica; )
27,320,000
with
LOS
Calif—NellM
9,740,000
8,043,000
]y[anufacturers Trust--
(Special
o£ lnvest°rs Planning CorP°ration of New England, Inc., 68
Chronicle)
Sheppard has joined the
West Seventh
the
Financial
;;
1,537,000
t
—
s
With Harbison Henderson
to
Guild
with
Commercial National Bann.
*
Excn.
Irving Trust
O'Neill,
J.
Company, Inc.
(Special
Corn
Hanover Bank
BOSTON, Mass.—James H. Mc-
Manus,
*
•tApproximate.
(Special to The Financial Chronicle)
H
42;31?000,
—
Empire Trust
Financial Chronicle)
CITY, Mo. — Wiliiari
has become associated
$7,659,000 the Midwest Stock Exchange. Lu\
12,000,000 Guild was formerly an officer
Bank of New York—
Chase National
*Not
With Investor* Planning
been
to The
KANSAS
Epct
United States Trust—
Treantos have been added to the
Calif.—Bernard Hof"
Burke & MacDonaLd
(Special
faken into consideration:
Guaranty Trust
,
„
having
First National.
Porno
M°rrlson' Flrst Boston 1 01p"
In
not
mergers
LOS
Joins King Merritt Staff
r
Consequently,, W. H. Guild Joins
Low
Candee Cup for Low Net; Frank
Charles
this field.
"Chronicle" of May 2l„
;
L.
73.
score
the
caution
l?ssl. experience.
sizable additional reserves, tax¬
free' became possible in 1954; a* d
Ehimanii, by the end of 1954 some of the
Lehman Brothers, and V
Tneo- N?w York City banks' total setd0re Low, Bear, Steams 6c Co., JsMes were as follows, the early
4
Gross:
con-
and
period (subsequent to 1927)
that best worked in with its loan
year
were:
cause
about
care
tournament
mortgage
There is
present situation. All current
ditions call
Blind Brock
and
courses
Winners in the golf
..
can
insure
to
Hollow
Sleepy
specu¬
stability through the careful
have in store for
O.
good trend.
Wr.ile t
over-finance
building
purchasing
$85
thir.king that the government
may
to
we
whether
gradually becom¬
ing smaller year by year. This is
a
want
industry. But
encouiage
lative
of these loans is
not
this
It is estimated
this year another $10 billion
be added and that the total
will
It is one of the principal functions of our institutions
extension
dwellings increased by more than
$9 billion, reaching an all-time
that
that the formula
years
bidden by law), and
the 20 years on
&
prosperous.
other group.
stability,
mortgage
to
one-
in-
(11) Our country needs a thriving home building industry to be
t'~e
trouble
or
year
life
have.
company can
no-
growth of this
decline
Last
secured
business
rate
ust
n
good
mortgage debt
necessarily post a seri¬
recent
debt
in
not
amount of
not
hazard
ous
does
of the very
one
real dangers in the
surance
a
or
nl
lenders,
borrowers
or
It certainly builders profit from a stable build-
of depreciation.
will
savings bank
a
do not
30-year
a
considering the construction row
being used whether this r^te takes
care
the
when
Mr.
the board
to
Scott
government
merely sounding
as
Over the
_
25-vear matur¬
a
been
never
than
ed
loans
Here I want to
rieduc-
a
^
and
than
more
have
less
not
payment
no
ity
for
FHA
the
as
got beyond 1952 and 1953 it beg,m
f.0 take the banks into the recov-
elected
was
Three
the govern-
and
because
reserve
of the banks in the early
large,' depression years, for it must bo
the
The
more
debt
has been operative some of the
to 'funds in the annual set-aside fchvo
1933
were
tax-free.
im
to
debt
treasurer.
be
agencies and indiscriminate-
purchase
merely
Estabrook
of
reserves
these bad
loan volume could be
all
It is the general
practice among the banks to carry
wereA so
being
A. Powers of Smith, Barney ac Co.,
call
making of our
We should not put all
on
.
Lewis
J.
succeed
the
responsibility
that
mortgage
on
should
in
Co.
-
1930
for
by the year-end.
(10) Conditions today
are
of
period
losses
vice-president
Walker. Blancke
Noyes of Hemphill, Noyes ac Co.
was elected secretary and Robert
propor-
tions
be understood
down
Robert
&
satisfactory
Requirements
provide
Country Clu
to
to
guarantees them.
currently
year to succeed Ran?ld H. Mac^onald of Dominick &
Dominick. The election took place
at the annual meeting of the Bond
Club held in conjunction with its
Field Day at the Sleepy Hollow
the coming
believe this will reduce the build-
ment, GI loan should be abolished.
should
lenders
and
But
Robert A. Powers
of
loan
and
set
arc
ing boom
ly
The 30-year, no-down-pay¬
rise,
manifesting
an
increasing
selectivity in their investments. I
this
exists
always
are
these terms has been abused. 19471948 was such a period.
I think
also
per-
future,
place a
stiffening
As
interest/ rates
credit.
situation
terms.
too;
for
near
moderate
mortgage
that there have
been times during the
past decade
when
mortgage credit based on
this
the
in
•
quite large (National City,
$10,000,000; Chemical Corn Exchange, $7,237,000; Chase National,
than '
more
20-year
years
t'e allowable
is
reason
not
to
a
the
n
heavy,
mortgage
no
re¬
year.
pression
wH
currently taking
gradual
insured
or
see
marked decline in
a
there
(4) The building boom has been
liberal
very
While
fearing
sonal
a
Of
and
contingency
instances the *at
1947 through, let us say,
1953, the Vthe reserving.
While these re20-year period had in it the de-hserves have, become quite la: gh,
housing
incomes
personal
ter
some
experience, applied
outstanding at the end of "homp from earnings, and somo
This operated satis--'from other reserve accounts and
factorily at its inception, for in' from tax savings resulting Lom
keeps the current
running is supported by
based
equal
times
debt
each
which
high
of
for
In
loans
building
the current year.
doubt.
set up as general
serves.
the bad
three
no
that the country can
support ap¬
proximately one million new hous
ing units each year without be¬
coming over-built. This calls for
¬
the
-
$6,430,000, etc.).
amount
of money rates
place because of
of business and
this I
slow
car
Treasury's answer was a tion from loans and discounts in
plan under which a bank was its statement of condition at any
permitted to reserve, tax-free, an' given date.
Re¬
single-person households currently
maintained.
They are oc¬
cupied by unattached persons both
to
those
as
The
the
speculative activity will be suffi¬
cient
.
this sort.
authorities do not take steps
to increase the
money supply, Lie
will
that
from
apart
for taxes,, interest, etc., and
particularly those that have been
per-
1930's, the banks quite natursought
meansto
reserve
against any future crisis losses of
serve
which
formula
were
the
selling
Federal
its
banks
are
ally
the
gradual
a
announced
which
losses resulting from bad loan accounts in the depression
years of
cui-
since
year
tional
emphasized
reserves
other reserves, such
mitted to set up so-called reserves
fer
bad
debts.
Mindful of the
communi¬
rates
be
ried
are
many
interest
should
partment
year.
ties and there has been
in
It
under
now
will be
present time VA loans
Bank Stocks
—
1947, after much im-
are
X-Vix.t
the
in
these
good.
lenders
in
This Week
Back
improve¬
for
housing boom
later
By ARTHUR B. WALLA CF
H' Walker. Jr- of G- H- Walker
portuning on
the
part
of
the
banks, the Federal Treasury De-
-OA'
'*■
current
v'
Y.—Geo.
beginning to show signs of in¬
creasing selectivity in the making
of mortgages.
This is the princi-
being
■
N.
the
person
is another new factor in
the demand for housing. It
es¬
timated that there are 5M> million
r
Bank and Insurance Stocks
of N. ¥. Bond Glib
SCARBOROUGH,
take
toward
outlook
gracual
(3) The ircrease in the number
of
households
occupied by one
than
estate
likewise
are
rise
Many
rather
more
GI
Real
The
apartments, made over stores and
out of antiquated old houses
which
resent
of
23
G. H. Walker* Jr., Pres.
in
always
are
terms
FHA.
at
were
Ue
made
similar
a
become obsolete
every year. Many
of
the
so
called
reconditioned
-
that
be
tions
,
of the excess of current
ing.
new
number
veterans
lenient.
(8)
(2) The difference between
of
insisting
needs.
family formations and the
the
that
political implications,
stiffening of the terms will be
moderate, to say the least. Organ¬
loans
such
in
afraid
am
any
must -not be attached to vacancies
very
strict
more
I
view of the
large houses located, in central
city areas. Too much importance
in
loans
future,
(2655)
Bell
(L.
Teletype—NY
A. Gibbs.
1-1248-49
Manager Trading Dept.)
Specialists in Banh Stocks
t
24
Chronicle
The Commercial and Financial
(2656)
.
.
Thursday, June 9, 1955
.
Nashville
Security
Dealer Summer Party
Tenn.—The Se¬
curity Dealers of Nashville will
hold their annual party June 30
and July 1 at the Hilwood Coun¬
try Club and Belle Meade Golf
and Country Club.
Reservations
should be made by June 23 with
Rudolph Lauper, First American
Our
Reporter
Governments
on
NASHVILLE,
National
fee
Reservation
Bank.
$25.
Members of the committees are:
Herbert
Committee:
General
Securities Cor¬
poration; Tom Hudson, Equitable
Securities Corporation; Jack LarEquitable
Petty,
kin, Mid-South Securities Co.
Invitation
&
Reception:
Carr
Payne,
Cumberland
Securities
Corporation; Bob Ledyard, Equit¬
Securities
able
Clark;
ton
Registration:
Rudy Lauper, First American Na¬
Walter
Bank;
Bell,
E.
Equitable Securities Corporation.
Bill
Drink:
&
Hendrix,
Equitable Securities Corporation;
Lem Clymer; Marion Thomas, W.
N.
Co.
&
Estes
among
issues.
It
Tickets: Peyton Evans,
Cumber¬
land Securities Corporation; Ray
ford &
Schoen, J. C. Brad¬
Co.; Tom McGlothlin.
Tom
Golf:
curities
National
Third
Jay
Ward,
Pil-
Matt
Bank:
Simpkins,
Otto
Transportation:
&
Beane;
Ed
Kirkpatrick,
Clark,
Landstreet & Kirkpatrick; Gene
P^ned,vt. Sn^ncer Trask & Co.;
Dick
Lynch, Pierce, Fenner
Shillinglaw, Mid-South Se¬
curities Co.
The
With Marache Dofflemyre
ANGELES, Calif.—Gerald
Merrill
and
J.
Luther,
with
affiliated
become
B. Kaciemba
Jeanne
Benezra,
Dofflemyre
Co.,
&
have
Jr.
Marache,
634
short-term
CHICAGO,
Henkle
Blair
has
&
La
staff
of
105
Mrs.
the
Co.
a turn for the better or a change in trend.
The market
Treasury obligations, with the exception of the near-term
is still thin and largely on the restricted side.
This gives
ones
the
to
market
considerable
a
amount
of
professionalism, which
means
that not too important price changes take place in both
directions.
This has been
the
case
for
quite sometime now,
especially since the monetary authorities have been exerting
pressure on the money markets.
the
Because
extended
an
market
government
has been
period, positions of dealers
the
on
defensive
small, accord¬
are very
ing to advices, and as a result it does not take much in the
of demand to have
$4,800,000 a year earlier and com¬
mon share earnings, based on the
rail
stocks
present stock capitalization, came
to $2.41 compared with $1.56 for
the like 1954 interim.
Y/hile the
paid
earnings are contin¬
uing to move forward at an even
more
rapid pace. On the whole,
this
in
weeks have
recent
attention
much
too
accumulation
of
good
year-to-year earnings gains are
not apt to continue at ine April
rate it is believed that some fur¬
to
news.
There have been individual strong
in
spots
the
list,
ther
is
which
and,
in
up
rather
in¬
almost
is
improvement
for 1955 as
whole
with
Along
this,
reports
comes
the selling, since it is indicated that
of the longer-term government
obligations
are
many
of either investment
influence
ments.
of
seemed
to
the demand
to
these securities when
it
looks
as
though
be
being
now
in
found
Analysts Societies
that
analysts
Illinois
Davis,
Cullom
Shelby
vis
New
of
Co.
&
-
far;
the
selling
was
house
of the 1955
At the same time,,
that
there
has
been
attitude towards
the middle and longer term government obligations may be a fore¬
Harriman
performance and its;
ing and to the press, indicates the
develop, since it seems as though the bear¬
ishness which is, and has been around, could be overdone. It is
the opinion of certain money market specialists now, that there is
substantial amount of funds which could
outlook.
been
be put to work in the
more
rant
such
diesel
distant Treasury issues as soon as conditions appear to war¬
action.
Likewise,
opinion
program
The
ated.
thing,
one
that
the
will
road
be
has
rather
been
getting
laggard
in
number
of
in quotations
grades, it had a large fleet of rela¬
tively new and efficient steam
some
the decline appears to
In
thin
as
not
be
to
seems
of the longer-term obligations, the bulk of
have been witnessed already.
addition, it is being pointed out that with the market as
it is, and positions of most of the longer-term issues in
going to be
easy
to pick
small
up
nearly non-existant, it
these bonds when
and if a
as,
place.
be
to
3s and 3^s
on
for the
that has been around
the
bellwether
of the
more
3s of 1995, which
distant
government
market, spread out into some of the 2V2% bonds, even though the
the cautious side as far as the
latter obligations are concerned. There has been a good two-sided
market in both the 3s and the 3Vis, according to feports, with
some
rather sizable trades being made in both of these issues.
buying
so
far has been more on
which
The betterment
had
has
has
been
evident in the government
corporate and tax-free
effect upon
favorable
a
offerings of public utilitv bonds which had been slow have been
direction
it
—
locomotives, and it is
for
large
a
a
has few
car¬
societies
Even without
dieselization
large degree of
a
the
had
road
been
efficient operation but it is the
opinion of most analysts that this
traditionally high level of operat¬
ing efficiency will be improved
upon with the new power.
An¬
other
development that has been
considered
finally
favorable
is
students
the
that the
decided
by
railroad
has
into the
company
to
go
piggy-back service which, on the
basis of the experience of other
leading finan^
.u
r*
cial
•
Cullom Dav.s
Shelby
centers
Rob_
se,ected
ert J.
Wilkes of Scudder, Stevens
Clark of Boston as Executive
&
Vice-President.
Davis
Mr.
First
formerly
was
Deputy Superintendent of Insur¬
in the State of New York and
ance
in
specializing
try
He
stocks.
New
Analysts
seat
Council
Graduate
Revolution
in
Sons of the
the
State
im¬
road's
of
New
York.
George M. Hansen of Keystone
Funds
any
Princeton
of
President of the
and
Secretary
the
Stock Ex¬
the New York
on
change since 1940. He is a trustee
of the College Retirement Equi¬
ties Fund, a trustee of Lawrenceville
School, a member of the
true that neither of these two de¬
on
the
Society of Security
1947-48 and has had a
Custodian
influence
of
York
re-elected
velopments is apt to have
insurance
President
was
railroads, is expected to better the
company's traffic position. It is
mediate
in
country's
his firm is the oldest in this coun¬
rier of coal.
an
The demand
appears
or
this
reasons
f
affiliated
•18
,
acceler¬
o
4,500 financial
? analysts from
has
it
or¬
ganization
company's
stronger that, while there may be further downward adjustments
of
the
For
stated
&
This
Co.
likelihood of further improvement;
in
the
company's position and
of what could
Bros.
Brown
in statements at the annual meet-,
change in
a
f
o
'
Also, the back¬
information, as contained
ground
M.
More-
Dutton
of earnings have both been
.
Large Patential Demand For Bonds
fact
ceeding
t..
average
its operating
cial Analysts
Societies, suc-
!.
the end 1
not far.
range and by
week
became
tion of Finan,
so
highly favorable.
The
York
President of the National Federa¬
Central.
common
manag¬
ing partner of Shelby Cullom Da¬
neglected.
Central
narrow
last
trend
of these obligations.
on some
Davis, Pres. of Natl.
move¬
While
the list of such stocks is long, one
of the outstanding examples is to
are
of
Also, it is reported that there are fairin certain of the longer-term issues, which
for
taking
are
price
on
many
above
investors
further
past have been among the leaders
ally
owners
now
On this basis those
situation consider a
increase in the dividend
this year has traded in an unusu-;
not inclined to let
in¬
shares
of
number
outstanding.
close to the
good values in stocks that in the
Illinois
a
the
possible on
seems
creased
During this period it has
high and low.
adds
$9.00
spec¬
ulative
them out at current levels.
short positions
or
a
something in the neighborhood of
way
pretty well digested in the past week.
Real estate loans of commercial banks continued to edge
Boston
of
was
Treasurer.
Members of the Executive Com¬
-
ward,
up¬
mittee appointed included
Richard
of
with reports that the warehousing of mortgages is an
factor in this trend. On the other hand, the smaller
important
deposit institutions also
mortgage loans.
and
appear
to be making quite a few new
PUBLIC REVENUE
With Central Republic Co.
(Special to The Financial Chronicle)
SECURITIES
Francis J.
Hess, Jr., is now connected with
Central Republic Company, Boat¬
ST.
LOUIS,
Mo.
—
Cosgrove, Miller Branch
WILLIAMSTOWN,
Cosgrove, Miller &
members
Joins Central
Republic
—
& Co.
Haven & Townsend
OCEAN
INCORPORATED
&
ST., NEW YORK S
-
CITY, N. J.—De Haven
Townsend, Crouter & Bodine,
members
of
the
New
York
and
BOSTON 9
office in the Flanders Hotel under
HA 6-6463
Avenue.
represent
orable and
they do indicate a for¬
looking attitude on the part
of
management.
Finally,
even
though the management has stated
tey of Hayden, Stone & Co., New
Davis
ward
further
contemplated
will
not
(Special
to The
Financial Chronicle)
Singer is
&
now
affiliated with Rey¬
Co., 629 Second Avenue,
South.
Straus, Blosser Adds
(Special to The
Financial Chronicle)
it
is
involve
in
recent
pected
the
management
Townsend.
of
William
D.
Equitable Building.
Mr.
previously with Baker,
Plans
Rather, it is ex¬
that the desired end will
ation
limited
be
all
of
sinking funds applicable
to bonds now outstanding.
the
the
things considered, the road
good job last year despite
economic
readjustment and
consequent decline in traffic.
Earnings
on
$7.68
share
a
the
Mr.
by
first
Federation's
the
common
which
to
well
came
was
The seminar will
Mr. Morehouse.
be achieved largely through oper¬
a
revealed
were
for
Davis,
Morehouse.
Beloit, Wisconsin, in cooperation
with
the University of Chicago
and
under the chairmanship
of
years.
over
week
the
they
demic
100
to
analysts
country.
live
will
surroundings
discussions
nancial
of
and
economic
problems.
from
For
amid
one
aca¬
conduct
and
fi¬
Mr. Davis also
announced that considerable prog¬
ress
has
been
toward
made
the
Federation's goal for certification
financial
ing 10 years and compared with
$9.30 shown in the boom year
CPA
analysts akin to the
designation in accounting or
CLU
in
1953.
a
above the average for
the preced¬
Moreover, after a rather
slow start, the road is doing very
well in the current year to date.
than five points compared
was
York in addition to Messrs.
Wilkes, Hansen and
this
that
In particular, it can be noted that
for the month of April alone the
Simonds & Co.
Dodge & Cox,
San Francisco and Pierre R. Bre-
substantial
DETROIT, Mich. — Warren H.
Tipton has been added to the staff
of
Straus, Blosser & McDowell,
Tipton
Lambourne
annual seminar to be conducted in
felt
the
is
cash outlays that have been made
All
MINNEAPOLIS, Minn.—Lee A.
retirement
debt
Bankers
St.
Philadelphia-Baltimore Stock Ex¬
changes, have opened a branch
WHitehall 3-1200
will
Stock
branch
With Reynolds Co.
nolds
De
Columbia
707
a
W.
did
John
S. Reidhead, Jr., has been added
to the staff of Central Republic
Company, Rand Tower.
Aubrey G. Lanston
New York
Everett
—
them.
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.
at
V.
John
Va.
Whitehead,
Exchange, have opened
office
men's Bank Building.
of the
W.
earnings but the intermediate and
longer term implications are fav¬
that
STATE, MUNICIPAL
indications
noticeable influence upon prices of the more
a
issues.
Treasury
drying
U. S. TREASURY
ST 2-9490
encouraging reading, and from all
nance
to be the kind of buying in these
seem
obligations, with some of the issues which have been on the
"sticky side" moving out into the hands of investors. The new
45 Milk
increased to $7,433,000 from
come
pation of
j
CHICAGO 4
net in¬
four months
full
the
For
con¬
in most
market
•31 So. La Salle St.
statistics
traffic
likely.
E.
previously with
15 BROAD
Railroad
coherent, with no definite pattern
emerging to indicate a predomi¬
though there does not yet
Activity Centered
Incorporated,
Street.
the
The medium and longer term issues continue to give evidence
interest in these obligations has broadened
somewhat, even
Chronicle)-
the
distant matur¬
more
securities which is usually associated with accumulation in antici¬
is
Genevieve
Salle
was
Marshall
—
joined
Co.,
South
Henkle
111.
large amounts in
tinue week by week to make very
not
too
A Restricted Market
Blair Adds to Staff
Financial
not
evitable and
turn takes
The
still
is
hands of dealers and traders very
Angeles Stock Exchange.
to
market
Illinois Central
a
unusual, some of the not¬
able price advances have been in
the
highly speculative category
and others have been registered
by recognized investment issues.
On average, the market has been
what might well be termed in¬
South
Spring Street, members of the Los
(Special
commitments in
to
government obligations.
a
(Special to The Financial Chronicle)
C.
certain
be
important one as far as
size and activity are concerned, but it seems as
though it would
not take very much in the way of a
change in attitude to push a
good part of these funds into the intermediate and longer-term
runner
LOS
that
make
to
sized
cher, Mid-South Securities Co.
Merrill
to
some
upon
distant
Temple, Temple Se¬
Corporation;
reported
have enveloped the
fairly good demand
of the longer-term Treasury
buyers of government bonds
seems
appears
for
quotations, because the floating supply of the
ities at prevailing levels is rather limited.
lor
Prizes: Ken
investors
selected issues, because the yields of these securities
appear to be
satisfactory at present prices. To be sure, it does not take too
much in the way of buy orders to have a noticeable influence
Martin, Temple Securities Corpo¬
ration.
is
have decided
that
&
market, there
around
Corporation; Cot¬
Nielsen, J. C.
Reservation
Food
Despite the bearishness which
government
Finer
Bradford & Co.
tional
By JOHN T. CHIPPENDALE, JR.
transportation ratio
year
net
earlier,
income
to
was
cut more
32.6%,
with a
and that
than
doubled.
more
of
insurance
and
committee headed
appointed
by A. Moyer
Kulp of Wellington Fund, Phila¬
delphia, to bring in
Herbert
D.
a
final report.
Oppenheimer
Herbert D. Oppenheimer, mem¬
ber
of
the
American
Stock
Ex¬
change, passed away on May 30.
o
,
Volume 181
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2657)
25
Bond Club of New York
Ranald MacDonald, Dominick & Dominick; Walter A.
Schmidt, Schmidt, Poole, Roberts & Parke,
Ph:Iadelphia; George H. Walker, Jr., G. H. Walker & Co., newly elected President of the Bond Club
Robert J.
Lewis, Estabrook & Co.; Ernest W. Borkland, Jr., Tucker,
Anthony & Co.; Joseph Ludin, Dillon, Read & Co., Inc.
Edwin
H. Herzog,
Edwin
L.
Beck and
Hal
Lazard Freres & Co.; Richard de La Chapelle, Lee Higginson Corporation;
W. E. Hutton & Co.; Edward Glassmeyer, Blyth & Co., Inc.
Murphy, Commercial & Financial Chronicle
Earl
K.
Bassett,
Charles
J.
Hodge,
Blancke
Glore, Forgan & Co.; Norman P. Smith, Merrill Lynch, Pierce, Fenner &
Noyes, Hemphill, Noyes & Co.; Wickliff Shreve, Hayden, Stone &. Co.;
John W. Dayton, Jr., Clark, Dodge & Co.
Edgar J. Loftus, W. C. Langley <6 Co.; Wright Duryea, Glore, Forgan & Co.; Harold H. Cook,
Spencer Trash & Co.; Hudson B. Lemkau, Morgan Stanley & Co.
William
R.
Dclmcnt K. Pfeffer, First National City Bank of New
Thomas J. Connellan
Caldwell, First Boston Corporation; George T. Flynn, Hornblower &
York;
Weeks; Theodore A.
Glahn, Salomon Bros. & Hutzler; Robert E. Nowlan, Stroud and Company, Incorporated
Beane;
Urban
D. Mooney,
Jr., Blair & Co., Incorporated; Emmons Bryant, Blair & Co., Incorpoiated;
Joshua A. Davis, Blair & Co., Incorporated
26
The Commercial and Financial Chronicle
(2658)
.
.
.
Thursday, June 9, 1955
Annual Field Day
William
Rovensky, Hornblower & Weeks; W. Ford Kennedy, Francis I. du Pont & Co.; Elmer F.
Dieckman, Glore, Forgan & Co.; Col. Oliver J. Troster, Troster, Singer & Co.
R.
George N. Lindsay, Swiss American Corporation; Nevil Ford, First Boston Corporation; Marion
Braman Adams, Adams & Peck; Daniel O'Day, Northern
Trust Company
Carter;
'T:■'&'$'■W'X''£''■.
lllllllilllllSII
4 '''''
/
V
■■''///';'J',
;
s
W:::cW:
Durwin
D.
Boston
Algyer, Goldman, Sachs & Co.; James Adam Lyles, First
Corporation; Stanley R. Miller, Goldman, Sachs & Co.
Benjamin B. McAlpin, Jr., Laird & Company; Hubert F. Atwater,
Wood, Walker & Co.; George Bovenizer, Kuhn, Loeb & Co.
Kimball Halligan, Cyrus J. Lawrence <6 Sons; Joshua
Davis, Blair & Co., Incorporated; Dudley F. King
A.
George Holzman, Chase Manhattan Bank; John T. Monzani, Halsey, Stuart & Co. Inc.; Edward
Love, Talmage & Co.; Henry Stravitz, Swiss American Corporation; James W. Wolff,
A.
Howard
r
K'?:
Andrew
Saxton
G.
&
Curry, A. E. Ames & Co., Inc.; Albert J. Quist, Glore, Forgan & Co.; Carl Stolle, G. A.
Inc.; W. L. Canady, W. L. Canady & Co., Inc.; George P. Rutherford, Dominion
Corporation; W. H. Reginald Jarvis, McLeod, Young, Weir, Incorporated
Co.,
Securities
Arthur
The
F.
First
Searing, C.
Boston
V. Starr & Co., Inc.; William R. Caldwell,
Corporation; Julius H. Sedlmayr, Merrill Lynch,
Pierce, Fenner & Beane
George E. Nelson, Gregory & Sons; Wm. H. Morton, W. H. Morton
& Co., Incorporated; Fred D. Stone, Jr., The Marine Trust Company
0f Western New York
Zuckerman,
Smith
&
Co.
G. Leonhard Boveroux, Robert Garrett <£ Sons, New York; Charles S.
Werner, Wertheim & Co.; John Simmen, U. S. Ttust Company
of New
York
Volume 181
Number 5436
...
The Commercial and Financial Chronicle
(2659)
Held June
Austin A.
Robert
H.
James F.
D.
Graham, Merrill Lynch, Pierce, Fenner A Beane; Robert C. Johnson, Kidder, Peabody A Co.;
Chamberlin, Brown Brothers, Harriman A Co.; Orland K. Zeugner, Stone A Webster
Securities Corporation; Morton H. Fry, Riter A Co.
Burns, Jr., Harris, Upham A Co.; Eugene P. Barry, Shields
A Company; Paul Devlin, Blyth A Co., Inc.
Frederick Barton, Eastman, Dillon
Allan
Jacobs,
Bache
Jr.,
Norman
Paul
A.
Co., Inc.;
Conley, Blyth A Co., Inc.; Robert M. Leslie, Blyth A
Stanley A. Russell, Jr., Blyth A Co., Inc., Philadelphia
3,1955
Homer
J.
Augustus
O'Connell, Homer O'Connell A Co., Inc.; Thomas S. Evans, Homer O'Connell A Co., Inc.;
J. Martin, U. S. Trust Company of New York; Harold J. Schluter, First National Bank
of Chicago; Charles E. Doyle
Austin Brown, Dean Witter A Co.; David J. Lewis, Paine,
Jackson A Curtis
A Co.; Paul L. Sipp, Jr., First of Michigan Corporation; Harry
A Co.; John L. Weinberg, Goldman, Sachs A Co.;
W. Stewart, F. S. Smithers A Co.
John J.
27
Limbert, Blyth A Co., Inc.; Eugene M. Geddes,
Lee
Webber,
Clark, Dodge A Co.
Robert Clark, Calvin Bullock, Ltd.; Stanley Russell, Montclair, N. J.; Richard C. Noel, Van Alstyne,
Noel A Co.; Milton S. Harrison, Wood, Struthers A Co.; Frank M. Stanton, First Boston Corporation;
Francis
Clapp, Jr., R. W. Pressprich, Jr. A Co.; Augustus W. Phelps,
Phelps, Fenn A Co.; David H. Callaway, Jr., First of Michigan
Corporation; Walter C. Veigel, Halsey, Stuart A Co. Inc.
A.
Cannon,
Elwood
D.
First
Boston
Corporation
Hallgarten A Co.; Joseph S. Nye,
Miller A Whitehead; Samuel Goldschmidt
Boynton,
Cosgrove,
28
(2660)
At
C.
Gerard
Dodge,
Cohu
A
Co.;
E. F. Grant
Sleepy Hollow Country Club
Taff; Edward S. Johnston,
John
M.
Wood, Gundy A Co., Inc.;
Emil Williams, A. M.
Edgerton
Walter H.
B. Vinson, De Haven A Townsend, Crouter A Bodine;
Weed, Jr., Union Securities Corporation; Norman P.Smith,
Merrill Lynch, Pierce, Fenner A Beane
J.
Spencer Trash A Co.; Charles F. Bryan, Spencer Trash A Co.; Brittin
Trash A Co.; Arthur L. Hawley, Lionel D. Edie A Co.
C. Eustis,
Spencer
Kidder A Co.; Edward G. Peterson, New York
Company; Malon S. Andrus, J. G. White A Company,
Incorporated
Incorporated; John S. Linen, The Chase Manhattan Bank; Francis
Cullum, First Boston Corporation; A1 Stalker, Kidder, Peabody A Co.;
Robert L. Thayer, Lehman Brothers
C. Eustis, Jr.,
James
Trust
Raymond Stitzer, Equitable Securities Corporation; J. Raymond Smith, Weeden A Co.; Thorburn Rand,
Rand A Co.; Malcolm A. Sedgwick, Home Insurance Company
Walter V. Kennedy, Coffin A Burr,
Allan
Lee
Paul F. Hay,
J. Lee, W. E. Hutton A Co.; Paul L. Sipp, First of Michigan
Corporation; William K. Paton, Farmers Bank of the
State of Delaware, Dover, Del.
W. C. Langley A Co.; William R. Coe, Virginian Railway Co.; Wright
Glore, Forgan A Co.; Richard W. Baldwin, Reynolds A Co.
Duryea,
Joseph D. Davis, Equitable Life Assurance Society; Walter W. Cooper, F. S. Smiihers A Co.;
August Belmont, Dillon, Read A Co., Inc.; Allen J. Nix, Riter A Co.; Alfred J. Ross, Dick A
Merle-Smith; Orin Tuck Leach, Estabrook A Co.; Marion Carter; Edward H. Nelson,
Gregory A Sons; Edward
R. Greeff, Adams
A Peck
Volume 181
Number 5436
.
.
,
The Commercial and Financial Chronicle
(2661)
Annual Joint
Harry J. Arnold, Goldman, Sachs & Co., New York City; A. Ossian, Dempsey-Tegeler & Co., Los
Angeles; Dick O'Neil, Fairman & Co., Los Angeles, President of Security Traders Association of
Los Angeles; A1 Hewitt, First California Company, San Francisco
Pete
Kosterman, Zilka, Smithsr & Co., Inc., Portland, Oreg.; Collins
Macrae, Wulff, Hansen A Co., San Francisco; William Faulkner,
Wulff, Hansen & Co., San Francisco; Maury Kessler,
Wells Fargo Bank, San Francisco
Phil
Milt
Arthur
Gambarasi, Shaw, Hooker & Co., San Francisco; Bob Ahart,
& Co., San Francisco; Dick Hennig, First California ComSan Francisco; John Cunnie, First California Company,
Reiner, Wells Fargo Bank, San Francisco; Everett Williams, Wells Fargo Bank, San Francisco;
Koch, First Boston Corporation, San Francisco; Bob Green, Pledger & Company, Inc.,
Los Angeles
Henry Perenon, Henry F. Swift & Co., San Francisco, President of San Francisco Security Traders
Association; Houston Hill, Jr., J. S. Strauss & Co., San Francisco; Rudy Sandell, Shuman, Agnew <ft
Co., San Francisco; Paul H. Aschkar, Dempsey-Tegeler & Co., Los Angeles
pany,
Clark, Amos C. Sudler & Co., Denver; Walter Vicino, Blyth & Co., Inc., San Francisco; Walter
Schag, Davis, Shaggs & Co., San Francisco; Louis Spuller, Jr., Elworthy & Co., San Francisco
Gene
Spring Outing
Walston
San
26
Francisco
Robert Diehl, Paine, Webber, Jackson & Curtis, Los Angeles;
J. Earle May, J. Earle May & Co., Palo Alto; George Carson,
Reynolds & Co., San Francisco; William Patten, Blyth & Co., Inc.,
Seattle
Frank Link» Harris, Upham & Co., Los Angeles; N. B. Van Arsdale, Blyth & Co., Inc., Los Angeles;
Gordon Crockett, Crockett & Co., Houston; Donald Summerell, Wagenseller & Durst, Inc., Los Angeles
William Zimmerman, Bingham, Walter & Hurry, Inc., Los Angeles; Max lbers, Coombs <fi Co. of Los
Angeles, Inc., Los Angeles; Forest W. Shipley, Morgan & Co., Los Angeles; Bob Pearson,
Combs <fi Company, Salt Lake City, Utah
30
(2662)
—
San Francisco
Chester
The Commercial and Financial Chronicle
;
Morgan, American Trust Company, San Francisco; John
Costello, American Trust Company, San Francisco; J. F. Finnegan,
Hannaford & Talbot, San Francisco;
John Buick, American Trust
Company, San Francisco
Thursday, June 9, 1955
Security Traders Association and
Glass, Jr., William R. Staats Co., Los Angeles; John' Quinn, Stone & Youngberg,
Francisco; Chas. Livingstone, Marache, Dofflemyre & Co., Los Angeles; A. Gentle,
Los Angeles Herald-Express
Warner
. . .
San
John
Sullivan,
San
First California Company, San Francisco; Robert Boler, First California
Francisco; Forest Shipley, Morgan & Co., Los Angeles; Chas. Ebner, Jr.,
Bateman, Eichler & Co., Los Angeles
Company,
Webber, Jackson & Curtis, Los Angeles; William
F. Hutton & Company, Los Angeles; Sidney Sanders,
Marshall, Seattle; David Garroway, Francis I. du Pont
& Co., Los Angeles
John
Jack Sillick, Paine,
Slocumb
Brown,
O'Reilly, Denault & Co., San Francisco; Kimball Palm, Brush,
& Co., Inc., San Francisco; Elmer Weir, J. Barth & Co.,
San Francisco; George Tapp, Locke. Gray & Co., Vancouver, B. C.,
Canada
Foster
E.
&
Ralph Dahl, Fewel & Co., Los Angeles; Bill Ginn, Dean Witter & Co., Los Angeles; George Earnest,
Fewcl & Co., Los Angeles; Stuart Baiker, Crocker First National Bank, San Francisco
Purcell
Leslie
Joseph Bellizzi, Walston & Co., San Francisco; Charles Sheedy, Fairman & Co., Los Angeles; Robert
Cass, Fewel & Co., Los Angeles; William Webster, Bateman, Eichler &. Co., Los Angeles
Howard, Brush, Slocumb & Co., Inc., San Francisco; William Pike, Morgan & Co., Los Angeles;
Dorroh, Shearson, Hammill & Co., Los Angeles; Graham Young, Weeden & Co., Los Angeles
William
&
New York Hanseatic Corporation, San Francisco; Ken Fazackerley, Irving Lundborg
Francisco; James Imhof, Rex Merrick & Co., San Mateo; Herman G. Frese, San Carlos
Hall,
Co., San
Volume 181
Number 5436
The Commercial and Financial Chronicle
...
(2663)
31
Security Traders Association of Los Angeles
William
Angeles;
Farrell, Irving Lundborg St Co., San Francisco; Bob Baker, First California Company,
Ted Beebe, J. S. Strauss St Co., San Francisco; Richard Gianti, Francis I du Pont &
San
Los
Co.,
Francisco
William
Brown, E. F. Hutton St Company, Los Angeles; John Dorman, E. F. Hutton St Company,
Los Angeles; C. D. Shipley, E. F. Hutton St Company, Los Angeles; Giff English,
E. F. Hutton St Company, San Francisco
Ernest
William McLoughlin, Blyth St Co., Inc., San Francisco; Charles Kane,
Warnes,
Walter
Blum, Brush, Slocumb St Co., Inc., San Francisco; Roy
Shearson, Hammill & Co., Los Angeles; Emmett Larkin,
Stern, Douglass St Co., Inc., San Francisco; Walter Gorey,
Walter Gorey Co., San Francisco
San
Gorey Co., San Francisco;
Francisco; William Dondero,
Leh, First Boston Corporation, San Francisco; Charles Jank, Frank Knowlton St Co., Oakland;
Andrew
fl
Lewis Wood, First Boston Corporation, San Francisco;
Frank
Knowlton
St
Bryan Robertson, Schwabacher St Co., San Francisco;
Norman Green, Dempsey-Tegeler
Ed. Goetze,
Co., San Francisco
Albert Loberg, J. Barth & Co., San Francisco;
Paul Johnson, Blyth St Co., Inc., Seattle
St Co., Los Angeles;
Hugh Schlicting, Wm. P. Harper St Son St Co., Seattle; William
Bailey, Bailey St Company, Fresno; Thomas Price, McAndrew St Co.,
Incorporated, San Francisco; Rader McCulley, First Southwest
Company, Dallas
Barry Stone, Blyth St Co., Inc.,
J. Barth St Co., San Francisco
James Brum, Shearson, Hammill St Co., Los Angeles; Donald Cameron, Merrill Lynch, Pierce, Fenner
St Bcane, Los Angeles; Henry Baker, Gross, Rogers St Co., Los Angeles; Oliver Stendahl,
Coombs
St
Co. of Los
Angeles, Inc., Los
Angeles
Tony Richman, Hooker St Fay, San Francisco; J. B. McMahon, Merrill Lynch, Pierce, Fenner St Beane,
San Francisco; William Belknap, William R. Starts St Co., San Francisco; Joseph Larzelere,
William R. Starts St Co., San Francisco
32
The Commercial and Financial Chronicle
(2664)
Fresno
Chas.
Rampley,
.
.
.
Thursday, June 9, 1955
Hacienda, May 20-22, 1955
Dempsey-Tegeler & Cc., Los Angeles; Dan Young, Dempsey-Tegeler
Angeles: Walter Godin, Dempsey-Tegeler & Co., Los Angeles;
Norman Hudson, R. L. Colburn Co., Los Angeles
&
Co.,
Richard
Los
Whitney, Whitney & Company, Salt Lake City; Tim
City; Art Benson, Dempsey-Tegeler & Co., Lcs Angeles;
York
San
Paul
Frank, Meyer & Fox, Los Angeles; Frank Ronan, New York Hanseatic Corpora¬
tion, New York; Bill Davies, Dempsey-Tegeler & Co., Los Angeles; Alfred Tisch,
Fitzgerald & Company, Inc., New York
James Fraser, Stern,
Isaacs,
Maurice
Sutro
Joseph McManus & Co., New
Henry Laverty, Davis, Skaggs & Co.,
Dunn,
Francisco
Co., San Francisco; George Kammerer, J. S. Strauss & Co.,
York Hanseatic Corporation, New York; Sam Green, Pledger &
Los Angeles
&
Hart, New
1955
1915
40
Established
in
Salt
YEARS
Lake City,
SERVICE
OF
Utah, in 1915,
our
firm today
serves
seventeen
communities in
eight states, principally located in the intermountain region, Southern California and New York.
We have
and
expanded
institutional
industries in the
Three direct
access
to
the
our
clients
areas
facilities in order
and
which
to
we
to
provide prompt and
keep abreast of
the continuing
efficient
service
to
individual
growth and development of all
serve.
private wires connecting
New York office with
our
our
western
offices provide ready
primary markets for regional issues in Utah«Colorado-Washington-Idaho-California.
Your
Inquiries
are
Invited
J. A. HOGLE & CO.
ESTBLISHED
LOS
ANGELES
SALT
LAKE
CITY
1915
NEW
DENVER
YORK CITY
MEMBERS
OFFICES
New York Stock Exchange
Chicago Board of Trade
San Diego, Calif.
Spokane, Washington
Boulder, Col.
American Stock Exchange
Salt Lake Stock Exchange
Chicago Mercantile Exchange
Beverly Hills, Calif.
Provo, Utah
Idaho Falls, Ida.
New York Cotton Exchange
Riverside, Calif.
Ogden, Utah
Pocatella, Ida.
Midwest Stock Exchange
New York Produce Exchange
Long Beach, Calif.
Butte, Montana
Reno, Nevada
Los Angeles Stock Exchange
{Commodity Exchange, Inc.
Spokane Stock Exchange
New Orleans Cotton Exchange
Missoula, Mont.
San Francisco;
Company, Inc.,
Volume 181
Number 5436
.
The Commercial and Financial Chronicle
.
.
(2665)
Continued from
first
13
paqe
months
three
companies
m/f
II
1*1
mination
the
of
necessary
the deter-
Commission
appropriate
or
is
in
the
public interest or for the protection of investors.
The only light shed on the conditions
the
Congressional committees had in mind as needing
correction,
Act
in
the
when
the
adopted,
was
committee
mentioned
Exchange
be found
is to
reports.
They
solicitation
of proxies
by management concealing secret
options and interests in underwrit-
ing arrangements. They mentioned
insiders retaining control without
adequate
terests
disclosure
of
without
and
their
in-
adequate
information about management pol-
icies.
They
mentioned
,
i.
Commission
follow.
to
enacted,
the
Commission has felt its way along.
change
There
Act
have
was
five
been
rn^jor re-
visions since the first rudiments
ary proxy rules were adopted in
1935.
Each
of
these revisions,
based on the analogy of Schedules A and B of the Securities
Act, was designed to elicit and
bring into focus the types of information which the Commission
felt should be furnished to security holders by persons, be they
management or others, seeking se-
curity holders' proxies.
Generally sneaking
manage-
ments
using proxies to take Horn
proxy
the type of
intoSSfoi TequiS
holders
rights
their
for
vantage.
ad-
reports
these
But
merely
property
selfish
are
own
the
part, of
legislative
history, and under familiar principles are hardly to be relied on
r
Historically thep^in the intervening 20 years since the Ex-
stock
valuable
,
,
..
utory guide lines are available for
the
rules
specific
heavily in construing statutory
language which on its face is
clear
of
hreadth
authodty
hard
can
the
of
frant
ual relations with the
be
ques^
any,
y
of
the
Exchange
nontrrfst
T pt
WOldmg
w
n
The
information
disclosures
which
the legislative approach
,TeS
used
was
by the Congress
when it wiote the Securities Act.
Disclosure
r>
4. i.
+u
Statutes
the
vestor
approach
enable
to
each
his vote
T
Both the Securities Act and the
Act
"disclosure"
statutes.
in
that
meant
thought
are
addition
as
that
By
of
is
to
pro-
viding civil and criminal sanctions
against misrepresentation and
fraud,
to
they
disclosure
vestors
tinent
designed so as
public and to in-
were
to the
assure
financial
of
certain
and
per-
business
unon
The
sought
consent is
to
in-
for which
matter
finariciai reoort must
a c aI
epo t
ua
m«s^p^
...
I
pre-
soliciting material
proxy
o
Exchange
for
calculated
"nrudent"
.
a
....
i
think
of
grant
.
within
a
very
,
broad
apply
and
which have provided
base for the thing
corporate democracy.
enormous
called
in-
The Economic Record
companies coming
into the public market with new
of
issues
the
by
securities,
Act,
panies
whose
national
on
in the
But
information
deemed
listed
were
securities
the
in
and
shares
exchanges,
Exchange Act.
of the
case
the case of
by com-
in
Securities
Securities
which
should
Act
the
be
Congress
disclosed
Section
ment
tion
documents
A
to
the
security
ing, by
a
Securities Act
registration state-
contain
be
and
the
of
7
must
the
in
corporation,
a
and
security
And
ules
B
and
hp
foreign
a
the
Sched-
SecuriUes
both
the
tvoes
con-
of
in-
and
business
available
thP
tne
tn
fnvffnr
made
fnH
fi-
Thpn
investor,
'^er~',MiH
be required,
tne
the
to
ute
power
the
men,
admStraHon
giving
to
mstances
particular
required
the
vary
of
be
ceitain
diminish
or
items
the
information
Similai
given.
Congress.
holdings)
intercorporate
of its registration
forms,
Contrast
with
this
legislative
Section
change Act where
14
no
of
treat-
the
such
Ex-
stat-
siate-
proxy
processing
the
by
staff could be evaded and avoided.
This means that we require to be
filed with us advertising material,
transcripts of
press conferences, if
transcripts exist, and things of
that kind which are intended for
distribution of communication to
securityholders. But it should be
clearly understood that we do no*
any
require to be filed with us, indeed
could not and should not under
familiar
constitutional
guaran-
we
.
lr];S the proxy rules in the context
.
f8® ^learly' c0?lci1selylJ!c:
proxy soliciting material has curately and persuasively. What
to which contesting pretty well run its course al- our processing does attempt to do
group> bg u management or out. though, as I just mentioned, there ls to see to it that material dis-
ment
as
aklf - sha» ?jrect company for and arethreeproxy contests still in tributed to stockholders does perWe policies the active condition. The experience
by
fortunes of their
soliciting proxies
not
sons
ensuing
of the 1955
year.
ent in kind
Impact
No
one
can
economic
fought
of
contests
the
panies.
charges
few
hard
control
known
of
com-
season was no differfrom 1954. It was dif-
only
in degree.
I
thought
last year that we'd seen every
kind of proxy contest problem in
the New York Central case and
the New Haven case taken to-
of contestants and
gether. Add Montgomery Ward
and those three were the big
Proxy contests of the last two
Can
years
Commission,
cannot
however,
for
ferent
the indirect
a
well
The
course,
Economy
measure
effect
of
some
the
on
and
does
of
not pass
anyQne
gay>
that the publication
of
and
counter-charges by
opposing sides on subjects pertaining to corporate management,
financiai policies and management practices and the publication
not have
all
in
American
indirect economic im-
an
the economy by progreater
awareness
of
up0n
a
posais
were
the
under
rule
"shareholder
(Rule
involved.
The rest were mostly
smaller companies.
.
n
«
4
«
«
.
...
in
contain misrenresentations of fact
o?
half truths
needed
to
Also
accurate
imDOrtant
developed in
soliciting
b
management
in
equally
control
to
of
is
most
bitter
the
that
have
contests
material
proc-
Commission
ou„
mu^t
attacks
unsupported
not contain unsuppoited ^ttacks
s?anderous ma^erial. We. as an
of
o«Pnrv
fho
®
"ot
„rh;l-
w
,
•
t
the
seeking
United
no
In our staffs administration of
apply
facts
this
and
many proxv
contain
t
facts
animosities
nersona
'essedy
of
stated
the
because
Bas,c Contc,,(s of Administration
rules
omissions
make
or
,.
.
,
.
in„
th
f
Gov-
m,vth°n»
any«" "f
in
nmyu
"
,
ln
A
th
"
f
thpir
nwn
y... nnvcaHminic:fra-
,
.
States
haw
rnnf„„t„nK
.
canpfihn
to retain and perpetuate control
on the one hand, and to the out-
complaining that one side or the
enterprises.
corporate
X-14A-8)
So much for the law, so much
for the economics_now
what
are
In ter"}s of the impact of the the regulatory problems?
rules on the economy of
the
country> this is
indication
that
the
WOrking well.
are
listed
common
tions
in
a
pretty good
proxy
rules
irpHprai
nf
rnv-
f
c:
lpff
tn
vnn
^nrP^nta-
The
value of
of
corpora-
stock
which
of
was
$169 billion at the
billion dur-
1954 and $175
ing the 1955
proxy
season.
listed
stock
panies involved in
proxy
in
value
1954
of
was
of
The
theory of the Commission's rules, which were designed primarily for the typical
that
if
fairly, accurately and clearly
sented
to
tal
interest
cause,
Thus
in
ability,
ence
contests
pre-
the shareholder he will
be able to vote intelligently. The
selection of management is of vi-
com-
V\ of 1% and in 1955
solicitation, is
important facts are
proxy
the
of
to
the
shareholders
be-
last
analysis, the
background an<| experi-
management is
stone for
a
corner-
investors' judgments
as
to the value of the company's se-
i/3 of 1% of the value of all listed
curities.
reaching an informed judgment,
the proxy rules provide that in-
In
were
1954
21
involved
for control of
listed
in
companies
contests
proxy
management. In the
vestors
in
the
To
be
aid
investors
furnished
form
of
a
_
Congres;s, actigg a
in
information
"proxy
state-
tlhe moment
through the Banking a d
rency Committee ot the Senate,
to hear your views and ours as to
how this broad grant or power to
our Commission, in the public mterest and tor the protection of in¬
vestors is working. Any evaluation of how the rules are working
must, of course be made in the
light 9f the statutory objectives
of fair disclosure to security
holders of basic facts about the
companies
in
which
the publics
I believe that this
criticism is not justified by the
facts
basic
uncontested
ofthpFvrhanlpArt
Section 14-of the Exchange Act
is generally a benefit to your secui-ty h de s. It
t
other is getting better treatment savings are invested,
from the staff.
facts.
Regulatory Problems
stock.
prospec-
tus requirements and rules.
ment
A proxy
,
the
intended should be the basis
formal
a
its
and
ment
shareholders, the owners of the iSf,
business, who exercise their judg- 1955
ducing
available
gress
the filing of
carpo^tions at the end public interest in corporate af- sider seeking to gain control on
lictpd rnmnanips tn form
1954 uwas about
billion. fairs and corporate stewardship? the other. Remember a few mm- ■ tives ^bs^fn[°^panites ^°hpt°b^
The number of corporations whose Is it not reasonable to expect that utes ago I read the words of Secthfnk
m/rndrnhd^r^ionnf
exchanges
detail
soliciting material is filed
with and processed by the Commission, the proxy rule requiring
proxy
that our processing
of a shareholders' meeting. The waste your time by repeating it. does not attempt to interfere with
shareholders have the right to That discussion was based on the or invade the rights of contestants
vote and this means that it is the contests in the 1954 proxy solicit- in a proxy contest to set forth
standing
end
considerable
be
all
struggle takes place in the forum widely circulated and I will not understood
pac^
Thus, the Commission, in administering the Securities Act, has
outline of that which the Con-
should
unless
.
f
a proxy contest is.
^be total market va tie of out-
proxy
contests
accorded- have occurred was $414 million in
the
issues of
1954 and $650 million this
1955
securities, additional Commission proxy season.
For comparative
discretion
being granted by the purposes the value of all common
1954 amendments adopted by the
stocks listed on national securities
in
wbat
pr0Xy
in
Another thing that
remembered
is
that
the
keep
to
war
the
treatment is
prospectus for new
an
r..
this
at the shareholders'meetings may
legislative
83rd
_
includes the estimate that (elim-
Banking
stock
prefers
..
of owners'reactions to the debates
inating
it
,
Committee
Senate
or the star
of tne stat-
Commission
or
inciease
to
n.ihlir
thA rfmffSrA«
the Congress wisely,
aaministrauon
by
'
,,
proposal"
when relating
na^fal Which in furtherance of
the
haiic^leeislaUve^^nurnose of
fn?l dhfeloqffre ft rifemed shoufd
and
no
omission of material facts
necessary to make the facts stated
not misleading in the circum-
hfvilS
the inspeci-
then^in
to
detail
formation
of fact and
securities are registered under the the encouragement and studied tion 14 that apply to "any perExchange Act and listed on na- stimulation of widespread owner- sons." Our staff has been subtmnal securities exchanges has ship 0f corporate equities which jected to very strong pressures
been about 2,100 in the past two has been a mark of recent >years and efforts at persuasion in conor three years.
would produce eventually closer ferences, discussions and converam not aware that there have scrutiny of the achievements and sations over the telephone and in
any serious administrative policies of professional manage- correspondence from representsdifficulties - difficulties of the ment? Let me emphasize that this fives of management and of outkind that could not be work.ed ^ an example of the basic prin- siders in these contested proxy
out by tbe registered companies cipies of democratic represents- contests. Usually each side comvvith the staff) or occasionally, by tive government applied to cor- plains that the staff is giving some
the registered companies with the porate organizations. The two undue advantage to the other side,
Commission—except in the case of gr0ups compete for the share- In my opinion this not so. The
the companies, a comparative few, holders' favor. After all, compe- staff always tries to administer
in which proxy contests for con- tion is in the American tradi- the rules impartially. The Comtro1 were carried on, and another tion, and this includes competi- mission itself has been subjected
handful in which shareholder pro- tion among men for control of to public criticism by people
Act the Congress specified in
siderable
simply
naving
or
issued by
government
A
the
Schedule
documents
fied in Scheduled B
a
by
it abroad in the land
S
specified
Act, when relating to a
issued, generally speak-
formation
to
informa-
accompanied
criticism private and not spread
Beyond this the rules
require that there be no
the proxy rules in the context of
proxy contests a few basic concepts should be recognized. First,
was
'
justification
my
ls
J-01 saying that the proxy rules
have provided a base for corporate democracy? Again, let's look
at the record, this time the economic record. The staff report of
the
clearly set forth in the statute.
provides that
No™. »hat
.
on the merits
their
causes
p.nnnm.
formation
submitted
company.
' tees require to be filed material
pn
^f-^ J e^courts, are usu- printed oi broadcast as news by
Ia vie™ of the relatively lim- ally sufficient tocompel correc- newspapers or radio or television,
'ted number of companies which Jjn or other appropriate action The only material which we rebave bee? lnv°lved, the direct
qairJ }°
!ei ^
?nd P?c"
ec°nomic impact of proxy contests
P
Y
essed by our staff is material dison tbe national economy is com- on Feb
nbuted or sought to be put out
ParaFurthermore Jj£ed ™
^
o security holders by persons soe|" as tbink for a moment just f
liciting then pioxies.
.
T
Commission,
years of experience, has
through
devised proxy soliciting regulations which work well in the vast
majority of cases to which they
an
Wrv
occurs
compensation, and their past and
stances. The rules also require
..that misleading statements in or
omissions from statements previously made be corrected in subsequent soliciting material.
Although the Commission has power
to seek an injunction in the courts
for the correction of misleading
statements or to prevent tne use
of proxies obtained by improper
soliciting material or methods, in
practice this drastic remedy is
staff is studying the rarely used. The administrative
tbe past tw° years processing by the staff, and the
the
power
This
prospective transactions with the
munication to condition public
opinion and the opinion of S(~cuJ'Jty holders. Despite the fact that
;be nu.mher o^ the proxy solicrtay10ns. involved in proxy contests
minor in relation to the numbei; 0± uncontested proxy solicitations, the proxy campaigns have
raised unique problems under the
Commission siules and new questions as to the proper role or
Commission should
follow. Our
coa*ests .°*
the nublic know
or
said
we
offiee
TnteUigentiv
act
or
of
prescribed
is
average
separate
if
comnanv
emolument*
such
Act
orlnt J
thu
at utilizing many media of com-
what
^lth' and interests in> the issuer, rarely. Usually when we have
their business experience, their criticized material the person who
them, however, involved the misleading statements
.?
public relations counsel,
Public relations counsel are adept
the other side
ftock optfons ^test is a struggle for control of hard fought; proxy cjonteslts for No Invasion of Contestants Right,
of a corporate enterprise. The control. This discussion has been
Finally, it should be clearly
their bonuses
other
and
most of them related
to companies of smaller size. Many
companies,
ment" which identifies the nominees, describes their relationships
yifonsTihe rSS™
exist today
provides the security holder witn
a broad basis of financial information about the company and
they
as
information
about
the
persons seeking to be elected directors, their business experience,
their remuneration and contract-
The
1955 six
involved,
.
;m+ce ihat tlme three ^ther con~
KUlOS
hav%„c°mmenced or are
AlUlvu about to. While some of these
.
concerned some of the larger
liWAjf
•
in
of
so
HI
n
JUOIfi illlwlll the l#AIV SPrOXV
About ftlftv SEC ® A
chm i/i
uu
should be fv, * which
that
were
33
Indeed, when pressed
justifying
allegations
for
of
treatment favoring one side or the
other such critics, so far as I
know, have never come up with
any. Refuge is taken in the critic's own individual opinion. But
there is a fundamental reason why
such criticism in the nature of
things is unlikely to be founded in
facts. This is because the staff
and the Commission discuss a per-
Keenan & Clarey Add
■
Chron1cle>
MINNEAPOLIS, Minn.
Bernard W. Rademacher has become
affiliated withi Keenan & Clarey,
Inc., McKnight Building.
'
....
<u
,
nr
a
With JMinneapollS ASSOC.
(Special to
the financial chronicle)
MINNEAPOLIS
Minn.—Calvin
q
and piaiph J.
-0'-ned
tbe
s^a£f
0£
Stewart have
Minneapolis
son's preliminary proxy soliciting Associates Inc Rand Tower
material only with that person. "
Management material is discussed
Joins F. J. Winckler
only with and commented on only
to representatives of management.
(Special to the financial chronicle)
Outsiders'
material
only
with
DETROIT, Mich.—William R.
their representatives. So only if Rotsted is now with F. J. Winckler
management
or
the
outsiders Co., Penobscot Building, members
themselves release our comments of the Detroit and Midwest StocK
on proxy soliciting material can Exchanges.
34
The Commercial and Financial Chronicle
(2666)
Continued
from first
In
known:
volved
based
a
Evening Post''
cal
on
from 50 to 150;
up
pound-of-steak
a
around
now
$1.20, which in 1929 was 500; to
say
nothing of the house that
could
have
been
purchased for
$6,000 in 1929 and
to
$15,000!
In
costs closer
now
terms
of
actual
Commoh
price
,;\v
•
stocks
more
in
increases
in line with
cost-of-living
less,
or
in
advance
the
investor,
looking
The
increased
for
power, the 1953-1954
bought about one-half the
amount of goods and services as
meet
dollar
be
did the 1929-dollar.
tain
Certain
figures
must
we
if
sented,
to
are
the many changes
ing
pre¬
occurring dur¬
1953-1954, as compared
Therefore, we ask you
1929.
consider the
Our
122
be
understand
Population increased from
to 162 million!
1
shows
lion
Business
that
had
we
full-time
payrolls
in
million
in
New
Activity
both
1953,
were
36
from
$11
to $35 billion in
Activity
billion
in¬
in
1929
1953!
Corporate Sales of all Industries
from $139 billion to $523 bil¬
rose
lion!
The Business Gross Product
W3s
from $95 billion to $321 billion,
while total
Wages and Salaries
up
(covering all industries) rose
$50 billion to $209 billion!
from
The Gross National Product in¬
from $104 billion to $365
billion, and
National
Income
from
rose
$88
billion to $305 billion!
With average
time
workers
increased
from
from
seen
Life
the
Continuing,
billion
Corporate
Sales
from
up
find
we
$139
of
that,
all
billion
in
rose
billion!
with
industries
in
1929
was
up
from $9.6
billion to
$39.4 billion (before taxes); Cor¬
porate Income (after taxes) in¬
creased from $8.2 billion to
$18.3
billion!
the
next
item
very
carefully: Total Tax Payments in
1929 came to only $1.4
billion, but
in 1953, the figure was
$21.1 bil¬
lion!
And, despite this big taxbite
out
of
income, the
out dividends in
corpora¬
1053
amount
of $9.4 billion
$5.8 billion distributed
After
made
tions
all
as
income,
able
in
1929!
had
our
the
against
in
deductions
from
were
ture
a
be
in
found
the
been
Surplus),
in
corral
all
cost
the
shares
As
against
as
further
a
of
of
around
accomplish the
$65
to
that
the
March 31,
on
$57.38
an
preceding
figures
believe
1955
it
and
1929.
structures
as
in
the
not,
or
to $125
came
amount
was
it is fact and
this
The
ratio
Stock
of
York Stock
income
in
the
was
indication
that
to
1953-1954,
we
and
Currency
from $2V2
billion to $30
the
same
time, Consumer
Credit
Outstanding increased
from $6.4 billion to over
$30 bil¬
lion.
The
Industrial
Production
Index
(1947-1949 equals 100) rose
from 59 to 125%! As we
proceed,
will supplement this brief re¬
sume
with a more detailed and
we
complete analysis.
The
omy,
Stock
Market
Picture
overall-Stock-Market re¬
the national-overall-Econ-
it follows tnat the increases
enumerated
could have
in
only
the
foregoing,
one result:
Stocks
Were Bound to Advance in
Price!
However,
factor
GROUP
to
there
is
an
additional
be considered—one
AND
now
11992344058760
i_
O
W\
A/4
arena
described in
•».
,
of
-f
AVA
where fear
Total
Wages
Business
.
.
is
.
.
and
Gross
(Millions)
Employees^
1953"
36.0
55.0
$50.0
$209.0
95 0
321.0
534
(Billions)
11.0
35.0
318
..__(Billions)
104.0
365.0
349
Income
___(Billions)
100)
=
..____(%)
88.0fc
59%
153)
Life
Annual
Insurance
Personal
Earnings
in
(Actual)
Foice_^
(Billions)
Savings——
$1,405
305.0
346
125%
$3,590
103.O__J295.O
239
~ "
255
_^82„
(Billions)
CORPORATE PROGRESS—
Corporate Sales
Corporate Income
!
—(Billions)
$139.0
taxes)_
(Billions)
9.6
39.4
411
Corporate Tax Payments (total)
Corporate Income for Common..,.
(Billions
1.4
21.1
1,500
(Billions)
8.2
18.3
226
(Billions)
5.8
9.4
162
__(Billions)
2.4
8.9
370
(before
Corporate Dividend
Corporate Earned
STOCK MARKET
Number
•
Surplus
(Total Shares
Shares
Aggregate
Payments
Listed
Market
Dec.
$523.0
379
N.Y.S.E.)—
31
Value
(Millions)
;
—
1,127.7
2,9°6.6
259
(Billions)
$64.7
$117.3
181
(Actual)
;
Per Share
57.37
40.07
70
DOW-JONES INDUSTRIAL AVERAGE—
D-J Industrial
Average as of Dec. 31
No. Shs. Outstdg. on the 30 Issues (29
Cos.)
Aggregate Market Value (29 Cos.):
Net
sales
(19
Operating
Total
Cos.)
Income
Tax
(before
Payments
Operating Income
Dividends
Earned
Net
Paid
Plant
Working
(21
(after
on
Surplus
taxes)" (22
248.48
280.90
113
(Millions)
206.4
571.3
277
$18,373.5 $39,765.6
216.4
(Millions)
(29
8,734.8
44,607.8
511
Cos.)__(Millions)
1,683.0
<7,827.0
465
(Millions)
186.0
=3,681.0
1,9'9
(Millions)
1,412.0
3,612.0
256
(Millions)
776.0
2,129.0
274
(Millions)
636.0
1,483.0
2°1
Cos.)
taxes»
Common
(29
(Actual)
(Millions)
(29
Cos.)
Cos.)
Cos.)—
tt-
422-"....-
INDIVIDUAL—
Average
1929
i~2%
Millions)
(1947-49
his
is
Value
(28
Cos.)
(Millions)
8,588.0
23,944.0
279
Capital
(28
Cos.)
(Millions)
3,528.0
10,215.0
289
.
.;
also
do
-a-drink
as
the
of
the
■tgjmply
because
pri^-level,
be registered
with
Exchange Com¬
just gradu¬
his professor
may
also well be an
investor.
Electricians,
br'ck'ayers, truckated
in-
an
the newsdealers
or
Investment-Adviser
an
mission,
before
to prohibit
W3s
class;
machinists,
the corners.
the Securities and
Pro-
for
com¬
doctors,
white-collared
The Investor may
in Washingtempted to do for
what
are
workers,
change firms,
ition
to
is
individuals
of
farmers; housewives, male-heads
of families; partners in stock ex¬
4n/4rf
judg-
on
ted
millions
the
railroad
confidence
Vestor
of
pnompprc*
lawyers, dentists, engineers; Tnprp
there
in-
or
from
drivers
—
one
wno
College;
all of them
investors
in
ing under
the
ofi^^Ebw-Jones-£#erages had reached
162.0
(Billions)
Activity
Product________________
Production
122.0
employees_____(Billions)
Product
National
Industrial
his
consum-
world-of-investors
professions, there
la«;uprc
rle*ntictc
caSfau-f
-"luifir- If "The object
1929
States___
all
li in
exercise
have
they
from every walk of life: From the
"^ dividual frcfth purchasing stocks at
FACTOR
Salaries,
The
.
/wnwnipiA
iglh:%Lo-i
^
1.
_
I
Construction
Gross
THE
United
4-/>
played off against bd^Fc t^T|e -inve
knowledge
where tips are ton
prcftabl
weighed against facts
wRffS^^e^private
prudent judgment offsets simori--l®tttdC dftj
.
transactions
mated.
prised
a-od™e^gry right to"
.
cover
mav
and
..
so
cash, whatever amount ot money
be
required to
any
rate-of-re-
•
4-
who
tinanc,aJ acuity 10 pay out in coia
chiefly
1
.
conflict
The in¬
participate in this
on the basis of their
judgments, desires and
financial ability to pay out in cold
results:
+f"
0
the
—
arena—
individual
Investor
ing based on his judgment must
weigh "the possibility of dollarExchapjjQ- losses^ Jhe hft^yidual investor has
Conflict
TITL
'if
it
an
a
never-ending
place every day.
conflict, do
*'■
w
exchange is
vestors
way.
defined
have
we
takes
cannot
„
intan^men^^and*"^
.
As
edicates any purchase on
,thQ b£$I$Sff fis being a calculated
riik. The" expectation of dollar-
jbe
are
but
Investors and the Stock Exchange
w
an
,_
.
prosper!
Expectation that the
^pfchai&bd will advance in
tangibles and
gibles conflict
where hunchesT^&jtk
.
can
Second:
.
inA
Full-Time
of
other
any
„
gardless how minute! If the cor¬
poration continues to expand and
prosper,
then the partners who
combine
to
own
it, will
also
constitutes
it
enterprise! Ownership
share of common stock
3.
where
what
irnantet"
partner
a
corporation represents a part¬
nership in that corporation, re¬
in
ac-
world
turn,o§: money!unvested,
exchange
confidence,
.
of
•
_
become
,
a sm§le
stock
then,, is
.
.
„
nor comb.na-
sfofllpAl reasonable
* 32*
n v«AK»n
modern
a
tem of free
of
:fn
;ptere^^d 'i^^yo
conflic
conflicting
The New York Stock
is
York
sale!
this
in
i
_
has every right
any
national
•
_
a
the wond io
available corporation that
operates under the American sys¬
consensus-of_i
sellers-oi-BJThrou£fr tfi£Eyes of
any.
Never-Ending
ECONOMY—
Population
Number
overall
to
Rights of the Investor
American
in
any
result
decision
the
make
in
_i
-
>wers
"stock
■ -
smaller
where
by
The
^-rnove
," ■7'5Ci^T1955-levels
1953
NATIONAL
New
the
rchatse and
Economic Progress of United States: 1953 vsMI^ZS'1 ^v^ti^a^n
Average Price
If the
flects
A
..
National
Deposits
billion!
At
place
balanced
TABLE
New
following:
rose
and
and emotions.
of
answer
takej^jjfc.
—
normally develop y^jfhin the
the
is
New
142.4%,
the
sons
Exchange, to national
1929
rt'k.T: 7 This
ex-
emotions and any number-of-rea^
must at all times, be counter¬
on
Exchange:
on
minute
human mind. The stock
date, but
only 8.1% in 1954! The
only
increased from $55 billion to
$215
billion
while
Money-in-Circulation
that
in¬
dollar-value
transactions
-
stock
any
continuous conflict
buyers
^
selfi^
directly from
comes
the New York
stock
late
'
of
emotional
and
billion. In 1954, the
only $24.2 billion!
at
the
is
stocks. Underlying this bgsic
con^I^heSyerage^investor is
flint are all the individual
l'lict are all the individual selfish
Now follows what is almost in¬
conceivable
a
floor
—
every
between
1929,
dollars
volved in all stock transactions
the New York
Stock
e&act moment of
an
to
necessarily that of the stock
Each
is
stock
common
is
of
Exchange1
cairy out the
exchange member!
per-100-sha^Xn ^L^
1929!
they existed in 1929
compared
the
—
place,
do
In
the
change
regard to any. possible comparison
between
givenf;
a
Stock
sell, depending in each
his or her own judgment
case, on
down, if the consensus-of-opinion
money• arxr*
„
not
approach the real story with
even
ox
or
—not
stocks up against
^Wcensus-of-opinion
h
'
-
sum
in
or
an
'
On
price of
average
on
must
buy
to
as
York
who
sale suua-^oncensus or opinion
^Ta^^nor can pny group drive stocks
purchase
a
proximately, $3,500
only
was
of
involves
ra
itself
consummate
New
actions
real function
wishes of its clients. It is the client
York
p^iniorir. expressed in definite
i'*
"fi—
important i£i—
wori&gpver
.M
Dec, 31, 1929!
on
The
1955
form
the
considerable
billion.
cost-per-
average
$53.90 against
no
Bank
the
that
a
31, 1955, an
would have to pay close
$176 billion! This, despite the
shafe
investors
of
objective
invester-
same
March
fact
$8 9
possible similarity be¬
tween the economic and financial
when
most
The
member-firm
be
New
stock-market
a
be
daily conflict
underlying
prices!
nor
should
and
as
ever
determination
24Hhour .day;ion
,
imnArfoni
mhncl
the
com¬
Exchange
asked to referee the
a
*5®* power
listed
1929 would involve
final
what
"
1953,
billion retained
there is
ifirfn
fol¬
(for fu¬
total
a
The
securitystnoir p*phanft»s yus^remendous
transactions. It,*1
I*
constitute
which
member-houses
pouredtheir individual judgment!
market-
a
the
Exchange at
little
as
can
Stock
York
the
price above
below thafrestablished on the
cmaiipr
eventually
Dec. 31,
Solving
anf? the.,small£r stock exchanges ^n^jugernational
active
throughout this country,
on
$53.96-per-share!
corpora¬
to retain
billion
$2.4
P*acetho
unuei
New
expectations into which in¬
vestor s-th€^ y^o r 1 d - o v e r have
Stock Ex¬
than
more
„
"More
basis of alLthfe concentrated hopes
and
averages
;
functions. These snould be carried
any
another individual! No actual
or
purchase
New York
is
-
nnrlpr
nine
requirements in the form of
Earned
add
in tip
the
But,
firms
the
and
:
Exchange
prise its membership have specific,
,,
Stock
the
the
in
.
out at all times in the interests of
worth at
change
on
rever-e
eonsommateotspn
million each business
$100
itself
old
cliche, long
Explanation tor the
-the.
transaction
securities
of
\ J.A'
of the New York
the investor-clientele. Neither the
by
1954!
and
ever
Stock Exchange
shares-of stoek must be purchased
day!
group
tions of this country were able to
pay
about
Exchange
Consider
—
in
has
or
' ■";v
The New York Stock
-
Stock Exchange
involved
fine
an
an
or
,
Daily transactions run
sale
and
trie
were
millions-of-shares
money
an
The average price
was
may
total
to
$523 billion in 1953, Corporate In¬
come
date
was
nr
is
up!
Function
The
constantly being drawn
investor and speculator!
as
set
has
1955
foundation, would
Sellers«
largest security-market in
world!
into
was
Irani*
To
on
on
$19.6
issues
of
the
is
the
be
as
of
market
firm
a
given day; i.e<?"More Buyers than
York Stock Exchange
The New
lowing:
in¬
to
The New York
was
stock
not
.
or
in¬
using his
to whether the
an
from
are ever-present
actions of the stock market
The significance of the changes
in shares and aggregate market
1929
$295
$4.2 billion
total
.
rules
new
no
prohibiting
investor
judgment
own
with only J
":®®
X, 3.
Considering#ellers than Buyers. This is an
almol jteolpte fall*? since for every
shares listed JGO shares-af^stock sola by any
actual com¬ one
comindividual, the same 100-
1954!
there
shares
million
.
finally,,where
There
offered
comparison
in
is
between
1929 was 4.3 million
that
dividual
.
on
sere's oLtStock
billion.
number
$176 billion
force
1953, while Personal Savings
from
in
fact
2.3
listings came to 3,261,900,000, and
aggregate market value of all
To
in
this
of
$64.7
the
this
line
volume
average
.
presented,
regulations
outside-ex-
and
thinking
and
»
parable average would be a 12.9
million shares in 1929 as against
1,524! Total shares involved in all
billion in
from $103
estimated
an
value
the
and
following:
Insurance
creased
1929, there were
Dividing
the
total
market
value
by the
number
of
shares
outstanding,
shows an average market priceper-share of $57.37. As of March
31, 1955, there were 1,089 com¬
panies whose shares were listed,
an
$1,405 in 1929 to $3,590 in
1953, the effect on the individual
be
market
value
earnings for full-
annual
may
issues
daily
in
je-times-as-many
three-times-as-many
in
1954 as 1929, the
with a total of
listed. Total shares
of these shares
creased
the
Common
and
wishful
1,127,700,000. The aggregate
roughly,
Construction
creased
1,293
our
the
million
2.3
companies
mil¬
against
as
while
reported
are
Listings
to
Sales
erly
where in¬
.
opposite sides
where pocket-book economics and
(actually turnover) was 119% in
as
against
19%
in
1954,
of all stock listings on
Stock
Exchange
Preferred
of
.
.
1929
shares
As of Dec. 31,
846
ratio
The
.
stock market than has been made
pectations play a role
where
irmeivemotions #nd high-powered
.
Stocks, reveals the following:
55
1929!
can
trie stocK
York
New
on
over
workers
increases,
turn to
to
3%!
A study
the
million
Increased
to
around
of
following:
various
market, when it is possible to ob¬
a return of 4 to 5%, if on the
other hand, the highest rate-ofreturn from gilt-edged bonds is
to
to
these
expected
.
side-information
speculative fever-point reached in
1929 may be seen from the fol¬
lowing:
purchasing-power with which to
purchasing
op-
to date! If all the facts were prop-
.
and
balance eacknGrther
shows the
that
gating committee should certainly
make a much more accurate study
pes-
wh£re hopes-for-thefears-bf-the-worst must
best
realities
factor
where
.
of the national-economy and the
search
total
Another
.
Thursday, June 9, 1955
.
whe^e snap-judgment
stacks up against intelligent re-
tirely different.
with prices in general.
and
.
timism;
dollar-values
inpractically entirely
borrowed money. Cer-
transactions at the
rate of 142% of total national in¬
come
clearly proves that point.
However, in 1953, the ratio of
only 8.1% proves something en¬
matter of statistical and histori¬
record.
pure guesswork
simism clashes, head-on with
were
tainly,
from 50; a copy of the "Saturday
well
now
volume-of-
the
1929,
and
trading
1955 Is Not 1929!
and
clear
perfectly
page
.
.
our
can
become
corporations operat¬
free enterprise sys-
tern, even including the refugee
the investi-
TABLE
II
^Year-|o-Year Economic Progress of United States
-National Economy—,
•.Tr.
—-s»Stock Market
hsfa.*ShsC7"
Aggreg.
VsfciSted:Mkt.
•^N.Y.S.ESS.
Year
Val.
Dec. 31
(Millioitsfe (Billic
,—Corporate Results—,
Oper.
Avail.
& Salaries
Tot. Wages
v
Com-
Inc.
for Corn,
Per Sh.
National
Paid All
Before
After
Stock
Dec. 31
Income
Industries
Taxes
Taxes
Divs.
Av Price
mon
(Billions )-
(Actual)
v
1.127.7
$64.7
$57.33
$87.8
$51.1
$9.6
$\3
$5.8
1.296.8
49.0
37.80
75 7
46.8
3.3
2 5
5.5
la.3tjr8*5Uwe
26.7
20.24
59.7
39.7
—0.3
—1.3
4.1
lD?^- 1,311.9
ijgr
22.8
17 35
42.5
31.1
—3.0
—3 4
2.6
19
1.293.3
33.1
25.59
40.2
29.5
0.2
—0.4
2.1
19343L
1.305.4
33.9
25.99
49.0
34.3
1 7
3.0
2.6
1,3-1 ff8-
46.9
55.62
57.1
37.3
3.1
2.2
2.9
1 360.3
59.9
44.n2
64.9
42.9
5.7
4 3
4.5
73.6
47.9
6.2
4.7
4
1"41
1952
llm
7
o
38.9
27.53
1.424.3
47.5
?3.f4
67.6
45.0
3.3
2.3
3.2
l,43fe4
46.5
32.37
72.8
48.1
6.4
5.0
3.8
41.9
23.60
81.6
52.1
9.3
6 5
4.0
35.8
24 46
104.7
64.8
17.0
9.4
4.6
38.8
26.39
117.7
85.3
20.9
9.5
47.6
31.96
170.3
10°.6
2^.6
10.5
4 5
55.5
37.20
182.6
121.3
23.3
10.4
4.7
1,592^1
73.8
46.33
181.2
123.2
19 0
8.3
4 7
UTliv
68.6
38.72
179.6
117.7
22.6
13 4
5.8
1.9Q65.J
2,0175
68.3
35.83
197.2
W8.8
29.5
18.2
65
67.0
33.21
20.3
7.2
2,\esh^:
76.3
?5.23
75
2,353.21 •
93.8
39 86
\m
1.470.5
,
1.489.4
,
1,492.3
-
2.615.9
I';
2,788.2
-
'
;
4.3
221.6
140.9
32.3
216.2
1*0.9
26.2
15.8
239.7
154.3
40.0
22.1
277.0
180.4
41.2
18.7
291.0
195 4
37.2
17.2
9.1
305.0
209.1
30.4
18.3
9 4
300.0
195.7
36.0
17.3
9.9
'
109.5
41.f 5
5120.5
41.23
1953-
2.92 \6«
117.3
40 07
1954
3-1H.3."
W9.1
53.29
„
,
9.2
;
9.1
Volume 181
Number 5436
.
The Commercial and financial Chronicle
.
.
from
war-torn Europe, who can
participate in this venture of in¬
vestor and on the same terms as
the
"Proper Bostonians," whose
ancestors
came
over
tne
on
"May¬
flower"!
private investors
are
means
There
well
as
also
a^e
vestors, whose
including
of
small.
as
institutional
resources
banks,
insurance
in¬
vast,
are
com¬
al]
of
these
investors, each
that
one—and
every
that
is
tne
wish
y&tt
"a
nice
weekend"; and the manicurist, the
bookblack, tne runner and the
banker are all on good terms with
that
and
our
another.
communist -creed
Wall
with
Street^ is
argues
synonymous
capitalism.
It x is; reiterated
over^again
that
Wall Street
exploits the worker,
and
over
firm belief that the American
sys¬
tem
of
free
enterprise is
the
its executives
are
greatest
of the world!
Tnatis the creed of
ever created
blessed
by
the
by God!
And that is the
reason
gardless of sex, creed
investor
makes
American
only
and
man
the
citizen
believes
why, re¬
color, the
very
best
for, he not
or
.
.
.
in
the
American
way-of-life, by investing in it
he contributes to its
continuation,
which in turn, insures the welfare
of all Americans, as well as
many
.
millions
have
non-Americans
faith
extent
the
of
in
Americans
our
the
Is
back,
*,
but for
.
Wall
stabbing
lions of other
Street
in
encouraging the
the
r
"
Yfes
Cyclical
of
Great
Chartge--
Going
period
o\%f.
back
all the facts and
the
and
25-year
iigufes available,
events
this
over
the
1929-1954,?£$se study of
Wnich
transpired
pefibd; clearly in¬
oTJfhese 25 years
long
dicates that four
marked
specific tuthing-points in
the national
econofny of
time
fourth
important year in
was the Year1946. In this year great decisions
had to be made by American in¬
dustry. At tne end of World War
II, American businessmen were
faced
with
the
problem
as
to
whether or not history might re¬
peat itself in a depression similar
this
25-year cycle
to
which
that
followed
far-sighted management
with
the
cooperation
of
American
shares
$64.7
our
made
an
bold
very
corporate
important
decision—
time has
proved, was 100% correct! For
getting the aftermath of depres¬
sion following World War I, the
leaders of
decided
enterprises
forward!
They
move
day, the number of shares
outstanding on the 29 companies
we are
using for comparative pur¬
poses,
totaled 206.4 million, or
18.3%
of
the
The aggregate market value of
the shares of these 29 companies
Dec.
on
31, 1929 was approxi¬
$18.4 billion and repre¬
mately,
sented
28.4%
market
country.
most
In
of the
one
beautiful
the
in
our
graveyard
sur¬
rounding it, rest n any who lived
and fought during
Revolutionary
Times.
For its oppos
ts boundary,
Wall Street has the East
River, to
wrhose
piers clipper shins once
tied
were
flag
the
across
of the
ner
ships that carried
—
every cor¬
of
street,
Nassau,
Sub-Treasury
the
the
ously
value
to
and
the
as
United
It
As
year
when
1847,
over
five
no
of
in
in
the
narrow
date the
The
cars
bad
of this day and
heart-heat
of
the
is always
ev'J"«t.
Those
living
all
people
in
who
Wall
Street
aM
races
earntheii
creeds.
from
come
25-year?%r$
stands
we
Here
J'
GTcl.
of
As
of
shares
Dec.
Exchange
^Vy5of all sta¬
just how bad thev^'realiy
The
next
were.
cyclirfd-year in the
25-year permd
Year-1941,
wh'ch orobab'y marked a
turning-point in woHd history. In
..
year
December of that
particinant
a
Historv
mav
Year-1941
as
yearf'the United
by'-.lbpan,
States, attacked
in
became
War
II.
eventually record thG
the last actual peace¬
1946—The
Trend of Stock Market Prrc^s
"V
Bas^d
H.iSJL. y
A^g.
'44-53
All fed
Cbar-ical_
American
Ccn__
Amerfrpri
Err fit.'
December .71,
1953
73
40
1953
103
23
D°c. 31 P'i'P T-3"
of Mean P :1*e
1954
53
I Yield
in %
45
Yr
1954
PasP'1
*>n
Dl":dend P°M
EarrintfST
1953
M53
-1954
138%
19'%
14.6
20."4.11 %
2 91%
164
173
14.8
1T(L_.
6 00
sion; and
1953—The
a
1C.7J
jB °3
CO
28
"5
93
150
Tel. & Tel.
1"Q
156
175
97
109
1'.5
17.Gf " 7
f-?77
5.14
70
T2
66
89
°4
10.3
r.3-'
6.45
•■'-6 07
37
50
109
135
?°5
4 5
50
71
94
113
6 0
2/1
8.T„
*.00
63
Pe'h'ehe*^
Chrysler
„
P~~ducts__
67
74
85
dr?ort__
03
107
168
Corn
E.
Steel
Ccro
•8,6
to
8
_
billion,
1953,
that
year
Hearings, in an
attempt to prove that what trans¬
pired in 1954 and to date in 1855,
might eventually produce a re¬
sult such as the collapse of the
In
the
article
preceding section of this
; 4.87
3/5
72
ri
225
15.7
2*7 8
3.72
47
183
294
10 8
4
3 5 ""
4.55
76
1°0
1"5
1°.3
1
of
4 42
^3.62
47
76
29
General
Freds—
46
60
Ganmel
M'tors_
s0
60
93
150
2'5
8.6
Tire
32
51
54
169
337
f 7
.
5.3
99
27
38
°3
ri
7.5
11.0
34
35
59
1"3
173
8 2
16.7
43
66
83
133
183
9 4
14.2
>Tirlre!
InVr.
Jch-s-M-nvilie
Loev's
in-.
91
Std.
22
be
to
of
stress these
national change
in
with
again
showed
62
The
progress
of
the
United
States has been so tremendous on
basis
the
of
measurement
new
United
13.0
r.6
20.3^ *5.26
7 1
:$•
6.02
JJ.07
4.09
188
J 5.9
1"9
12.8
220
8.2
247
8.2
12.2
8.6
12.3
t«86
4.36
.\r.
3/*8
2.91
•
f.85
77
151
1J1
100
37
58
66
157
232
43
74
86
172
200
j
174
15
20
74
51
81
155
F. W.
43
43
52
94
44
55
73
280
133
33
131%
,
19.0
0.3
19.1~f>;r.77
sis
H-i^2,42
71.6
—;-5.F6
3.75
rw6.25
4.10
12.5
the
of
market
uted
2 52
4.49
* "*7.50
4.05
-*7.92
3JOS
16.a^„
>82
16.8 *"
"5.74%
4.31%
5.9
245
10.5
17.9
113
12.3
195%
11.1
9.X
the
at
the market value
The
number
sented
1929
in
and
of
of
of
Dec.
the
to
31,
the
31,
1929,
stock
1953
as
analyzing
that
factors
rise in
over
contrib¬
Market
that
will
use
Prices
period
Dow-Jones
this analysis,
29 of the 30 Industrial
which
Stocks
long
now
comprise
Industrial
the
Averages,
eliminating however, United Air
Craft, which was not incorporated
until
As
a
1934.
of
total
Dec.
of
listed
on
31, 1929, there was
1,127,700.000 shares of
and
the
Preferred
New
York
stocks
Stock
$3,681,300,inconceivable, but
000! It is almost
the ratio of the 1953
tax-paymentg
to those paid in 1929 is
1,979.2%!
It might be well for a Senate In¬
vestigating Committee of the fu¬
ture
to
keep
That
Ratio
thing
Those
Figures
and
was
in
Mind!
Before
any¬
brought down to the
common stock, the Tax
Collector
got his "big bite" — one that com¬
pletely changed the figures, as far
the stockholder
Deo.
on
of
end
1953
All
29 of the
was
concerned.
Companies in the
shares
.
lar
repre¬
our
for
the
attention
the
Stock-Mar-
following,
National
billion
Gross
from
once
Income
$305
to
rose
National
billion;
Product
$104 billion to $365 billion;
from
$55
bililon
$215 billion,
Money-in-Circulation
rose
to
from
$2i/2 billion to $30 billion!
It was obvious to any intelli¬
gent analyst that these dollar-in¬
all
creases
reflect
sheets
the line
along
themselves
income
the
at
tax
1953
to
a
shares, with a
billion
total market-value of $39.8
—the latter figure being 216.4% of
the 1929-value!
Complete figures in all
available
the
for
cases are
Year-1929.
Strange as it may seem at this late
date, some companies in 1929 did
not even report Net Sales or Oper¬
did
Nor
taxes.
panies
Charges
some
1929
com¬
1929, and in some other cases,
to
Plant.
report the value of the
we have
complete as
possible,
by
gathering
together
those
company-figures
which
made this
made
a
However,
analysis
as
available for
1929,
so
comparison can be
using similar accounts
proper
carried out,
for 1953.
Of the total of the 29 companies
under
analysis,
in
billion.
1929
in
Believe
same
in
20
reported
the
it
or
total
not
o(
in
1953,
reported
billion
terrific
—
amount
of
that figure being
519.7% of the 1929 figure!
Operating Income (before De¬
preciation charges and Taxes in
1929 for 22 of the Companies re¬
porting,
amounted
to
approx¬
imately, $1.7 billion. In 1953, the
same accounts showed $7.8 billion,
or 465% of the 1929 amount!
24 of the 29 Companies reported
Depreciation
Charges
totaling
the
by
28
of
our
com¬
was
billion,
billion
at
the
end
of
1953,
the
latter figure 350% of the former!
22 of
ed
in
29
our
their
1929
Companies report¬
Gross
at
Plant
Investment
Evaluation
an
of
$11.6
billion; at the end of 1953;
plant
gross
evaluation
billion,
or
came
to
$38.6
335% of the 1929-value!
The net Plant Value of 28 Com¬
panies
at
the
end
of
1929
was
around
$8.6 billion, but at the end
1953, the value had increased
$23.9 billion! The 1953-value
of
to
was
279% of that reported in 1929
The
Working Capital of 28 of
Companies ro«e from $3.5 bil¬
at
billion
298%
the
end of 1929 to
$10.2
1953, the latter being
of the 1929-figure....Adding
in
the
net plant
evaluation to the
working capital indicates that 28
companies were worth $12.1 bil¬
lion at the end of 1929. At the
end
of
1953, the
total
a
that
addition
same
value
the
of
actual
$34.2
shows
billion,
evaluation
so
Net
of
Plant plus Working Capital, at the
end of 1953, was
evaluation
Now,
at
282% of the total
the
please
end
of
1929!
consider
the
fol¬
lowing:
For every
ue
for
the
dollar of Market Val¬
stocks
common
companies comprising
in
1929,
there
of the
Group
our
65-6/10
was
cents
of plant values plus
working
ital.
basis,
On
the
same
close of 1953, the total
of net plant
was
cap¬
at
the
evaluation
plus working capital
85-9/10 cents for every dollar
of market value!
It should be obvious
casual
as
reader
the
with
that
even
to the
increases such
following—when compared
Companies reported Net
the
of
approximately, $4.3
increasing to almost $15
Net
$8.7
or
1953
Total Surplus at the end of 1929
(as
made
tax-payments
or
for
$776 million
Surplus Earnings for the Yearwere $636
million, as against
$1,355,000,000 in 1953!
Depreciation-
report
times
1929
before depreciation
ating-Income
payments
274.4%
in
lion
end of
total of 571 million
7.8
payments, but in 1953,
was actually less than
payments.
latter figure.
did!
having
an
aggregate
$18.4 billion, had
increased
Available
was
vs
the
market value of
$45.4
total
balance
The 29-Company Group in 1929,
206.4
million
shares
out¬
standing
Income
Common
tax
fol¬
net income
corporations,
certainly
they
annual
and
individual
of
the
in
statements
would
with
the
the
total
rose
Wages and Salaries paid out
by Industry increased from $50
billion to $209 billion; Bank De¬
posits
and
Currency
increased
Sales
1929, Net
for
being
the
paid
Population has increased by
$88
consider
totaled $2.1 billion
a
in
rise
to
million.
were
In
figure
1929-figure!
please
panies)
Our
and
Now,
lowing:
latter
the
Dividend
prices over the years 19291953, we would like to recall your
not
the
—
255.8% of
k
ket
and
C00
1953.
clearer pic¬
ture of the foundation which ex¬
The
same
.
Companies
40
$1,412,000,000. In 1953,
Companies in the simi¬
account, reported $3,612,000,-
the
.
216.4%!
was
of
order to draw
Sales
For the purpose of
we
tremendous amount of
of 571.3
vv
that
overall analy¬
an
position
as
Common
highly
be¬
4 81
247
-
Let's start with
of only $186 million, but
1953, this same group of cor¬
porations paid total -taxes in the
in
amount of
shares
Gross
1929
nating to the reader.
2.96
21 3.
prove
amount
276.8% of the 1929-figure
in
of time.
133
ten years.
this
of
Compared With
witnessed
144
*Highs and lows,
reader
now
should
4.55
98
72
As
4.17
77
73
un¬
will be
should
be—by
"
69
53
Cos.
JK
62
45
30
9.9
52
33
Woolworth
1953
We will
Payments in 1929 in the aggregate
of
failed
5.10
—
43
STe?_____
Average
2.64
-
2C.9_ .^6.15
100
47
on
;
the
1C5
27
based
factors,
it
legislator in Washington gasp: 22
of the
Companies reported Tax
ber
had
heights that the
was
intelligent
Dec.
194
Aircraft-
eliminated—as
any
against
86
Westincbouse El.
S.
economy
article.
each
1°5
Carb'de
of
end
any
economic
sound
4.92
66
N.
of
the
at
national
the
1.953,
available
every
and
4 83
24
Company
Texas
2 27
total
a
,
The next figure should make a
was
the
porations, as measured by specific
common
denominators, witn only
one conclusion possible.
6,'4
10
Calif.
barom¬
and tie
changes in the
financial affairs of our major cor¬
&J72
-■
40
_
the
Our next step will
the Year-1929.
5.27
C4
J.__
Oil,
Union
"
5.56
52
Hcebuck
Std. O h
V.
4.63
...
7.41
...
rs
„
Procter &Gmb'e
Sears
13
14-fe lt&67
Steel
Dvtfl!f
N"t'l
National
_
in
recorded for
the Year-1953 in comparison with
3.13
26
Inter., Harvester
witnessed
changes
national economy as
illumi¬
15.7*2
34.0
Kodak
Goodyear
the
lieve
12.9
21.0
yertric
;
to
we
127
General
Eastman
attention
drew
we
1929-figure!
year-1929
reported
Net Income
Available for the Common in the
and
1929 stock market!
sent statistical data which
207
came
of the
Total
the
$520 million in 1929. Such charges
increased to $1.8 billion in
1953, representing 351.4% of the
million shares, with an aggregate
value of $39.8 billion. The num¬
naire and in their
also
5.27
170
181%
or
The group of 29 stocks
31,
marked
stock
proceed to get into
the meat of this analysis and pre¬
HO
.
value of
1929-value!
prices, and
the Fulbright
Committee used in their Quest on-
of
6.34
-
JlO.T7
2,926,600,000—or,
were
$117.3
from
4 4.5
.
I.
which
year
further expansion in the upward
movement
3 45
Arrer. Tofcacro__
Amer.
total
Stock
more:
the end of 1953
Mpan
D"c. 3J
deci¬
great
philosophy
that would even attempt to infer
that the stock market position at
(Dow-Jones Industrial Average: 30 Issues)
itc—
peace-time
a
of
year
fallaciousness
r i
of
end
reached such
III
York
The aggregate market
isted
eters
avv'Iab-le'.wiH reveal
datq
the
1953,
New
listed
Exchange.
259.6% of the 1929-figure!
In
;.
them
tistical
a
1941—The
overall
are prone
31,
the
on
speculative
a
'.V ! -V
1932-1933—Beginning of the 10-
starting
extremely
Pe^aus^v^o
that onlv careful
TABLE
•
of
end
••'•
Those
forget what trmitioired as far
back as 1932-19°3g'ff ban be said
are
bankers,
brokers,
and
clerks,
shopkeepers, bartenders and bar¬
times.
now
beeri^tbe low paint
decade
a
the
were
markedHThe
years
of
was
to
feeling that tfrs is
financial
this
per(ib^fthat
1932-1933,
point
car¬
age!
the
its ef¬
j:dk!rz
second
in
years
the
national;%cbnomy
know to have
accommo¬
world, its Main Street,
the
on
concerned.
two
high-powered
the
and* certainly
of the long depressmn-era.
motor-drawr\ trueks and
But
of
one
historv
our
fect
asphalt-paved
streets do their best to
begin¬
longest and
the
to
horse-drawn
the
witnes^d^he
the
riages and vehicles — to today's
skyscrapers of marble and s'one,
while
of
show,
most far-reach * ng -as Jfa"r as
was
resound ng
the
$&*%.
deepest deoression*U%Ver recorded
George
building
height;
1929—The
stock-market alone.
records
1°29
ye^r
indeed from the
stories
cobble-stones
clatter
the
out
cry
the
to
stocks
Analysis of Our Group-of-
era.
First President of the
far
a
us
fined
States.
is
Let
cyclical
any
Year depression.
Washington took his Oath-of-Office
the
was
all
aggregate
cross-section of the overall picture
of the stock market as it was in
•'-r.stv
th<p£/years obvi¬
ye|[F^J929. That
of
the
nation in history!
repeat then, since these
years
referred to, will
people of
marked the 'e^df-of a highly
speodative era and 6ne not con¬
which
where
of
com¬
year
stands the
building,
spot
at
•
The first
ning
down
corner
marks
to
pletely.
world!
Half-way
the
seas
our
corporatiorig?®ftanged
of
the New York Stock
on
analysis:
and
listed
1953, and their aggregate market
value 33.8%.
Our Group, obvi¬
ously, is a sizable representation
of
all
listings and provides : a
War
great
Trinity Church,
shares
the exchange.
on
form the basis of further detailed
oldest
total
Peace¬
from
Production
opment which fol o&*ed; the finan¬
cial fortunes and the future of our
stands
the
35
had
expanded
their facilities in order to develop
the greatest potential of produc¬
tive capacity ever known to the
converted
time
States.
end of Wall St eet
On
billion.
that
Group
showed
18.7% of all shares listed Dec. 31,
our coun¬
try. So important \#0re these in¬
dividual years, thatTri the devel¬
one
on
same
business
our
to
as
Actually, Wall Street (and its
environs) is typical of Main Street
in any town or city of the United
At
listed
as
investors,
decision which,
a
all
was
all shares at the end of 1953
Led by
and
date
World
War I.
but
The
this
to
up
introduced.
decision—a
on
inflation
of
factor
not,
attacks
who
Street"
been
the
had
management
corpora¬
"Main
which
mil¬
many
gop^Americans
while
without
defense-spending and
"Commies" to continue with their
tions, with their hard-earned and
Street
attack
their
owe
.
harder-tc-keep cash!
Wall
to
per se, means
country to the
they too invest in
s-ock of
who
allegiance elsewhere %.
our
where
common
.
Communists
the warmongers
and
develop
under
peace-time conditions witnout tne
The
'
~
.
The
that
apparent
was
the last year in which
national economy was able to
influence of
to
pauses
.V.
is
;
certainly
1941
you
drug-stake thanks
*
he
one
denominator
value of
it
function
one
common
Exchange.' The aggregate market
again!
The
ail|uie time.
it
time year the world will ever see
sincerity for havirig made a
purchase, no matter what size, as
panies,
Mutual-Fund-Companies
and Pension-Funds.
But there is
binds
with
meets
clerk in the
with
There
large
bers. Though there
jis .an air-ofhurry and activity? yet the word
courtesy is not forgotten, for one
(2667)
the
nominal
increase
in
the
aggregate value of the companies'
common
—
that
end
to
of
stock
the
)953,
discount
issues
Stock
outstanding
Market
had not
the
even
Let
us
corporate
the
begun
tremendous
provements registered
dividual
at
im¬
within in¬
structures.
again stress the percent-
Continued
on
page
36
36
The Commercial and Financial Chronicle
(2668)
Continued jrom page
Mean
35
Price
1953 in
Relationship:
Factor
1955 Is Not 1929!
1929
SALES
NET
versus
$25.50
figures:
rvet
1953
the
in
increase
age
Sales
per
creasing
in
Available
for
Dividend
common...
Working Capital
the
290%
Value
Common
Shown,
only
Cyclical Years
1953
—
Because of the large number of
stock-splits and
which
upon
parisons
1929,
for
make
to
the
com¬
cyclical
years
1932-1933, 1941, 1946 with
is to adjust the number of
1953,
shares
in each case
where such stock-splits and stock
outstanding
dividends
made
were
then
and
examine
comparable
statistical
denominators on a per-share of
stock
common
basis. For this pur¬
have used statistics avail¬
pose we
able
16 important
on
AND
Average
and
reported
all
used
are
companies that
common
in
denomina¬
this
table
$5.85
in
and
analysis.
individual
shown.
per-
Economic Denominator
and
years
'
Gross
National
1929
Product..
Average
shares
the
ag¬
close
it
1953
Dec.
31,
1929,
almost twice that
1929-value.
of
However,
had
the
1929,
at
$57.38,
was
1946
of
was
on
per-share basis, whereas at the
a
Billions)
(as of Dec.' 31, 1946)
that
by 1953,
the
of
1941
exchange,
price
average
the
end
of
1953,
back from the
only come
$125.8
41.3
104.7
Business Gross Product.
94.8
49.9
Total
51.1
30.3
21.2
12.7
25.7
52.3
77.2
248%; Corporate Sales 273%; Cor¬
15.7
2.0
22.6
26.6
55.1
porate Profits (after taxes) 123%,
in
in
of 1946.
PAYMENTS
Compensation
ployees
1953.
1953
Personal
•Before
have been $43.90;
in 1941 only
$24.40; $38.30 in 1946 and in 1953,
$56.10!
132%
of
cost
market
ments
tional
146% of 1946.
tAItcr
analysis
other
enumerated.
cyclical
A summary
117.7
209.1
25.0
51.2
1932-1933 low of $25.59
71.1
176.2
270.9
17.0
22.6
39.4
—8.2
1.9
9.4
13.5
18.3
1.4
In
7.6
4.5
there
5.8
the
advance.
statis¬
9.4
in
1953
had
level
had
be¬
nation's
the
in
changes
1953
not
important
these
discount
to
1929,
closing
the
that
Pay¬
versus
justification for
every
market
major
In other cases, after
changes have developed.
Study of these figures and then
the
was
stock
...
economy.
such
Stock
Market
1953
Denominators
which follow show clearly this re¬
periods,
changes in
61%
believing
"21.1
9.1
2.3
Product
Dividend
Corporate
gun
some
discount
may
0.4
5.8
and
ments
Taxes.
of
National
Gross
increased 246%; National Income
523.5
1.5
to $40.07,
In consideration of the fact that
95.9
all
analyze
Market
1348
Versus
this
From
point
lationship:
The Stock
will
develop¬
succeeding
ments from the year
*
we
on,
1946,
so
that
1932-33
times; in 19J9, 13.7 times; in
1953, 9.6 times. Actually^ stocks at
the end of 1953, on the ba^is of
this Ratio, were cheaper than i'd
the
64.8
—9.6
1
10.3
of
321.1
9.1
times; in 1941, only
16.1
182.8
11.3
as
regards price move¬
parallels the overall na¬
economy.
prices
The Price Times Earnings Ratio,
averogCfi for the 16 stocks in
was
Taxes.
Careful
1929; 230% of 1941;
112.5
138.6
tics above indicates that the stock
share
per
.....
Corporate Profitsv
Corporate Tax Payments.
Corporate Dividend Payments..
cost per share in 1929 would
305.0
the
..........
and then re-averaging
Group, shows that the av¬
$364.9
179.6
Consumption Expend¬
Private
Savings
Government Receipts
Corporate Sales
Corporate Profits"-
Dividend-
$209.3
.
Em¬
itures
Gross
the
The 1953 average
to
.....
made
case
erage
any
the
in
$57.2
each
1929
for
increase
shares listed
of
87.8
for the
as
stocks
stock
exceeded
1932-33
high and low
price for the individual .years in
was
such
centage rise in the mean market
value of the 16 company common
as
the
on
Changes in the National Economy
1953!
the
$104.4
...
Averaging
Corporations
shown in the
accompanying table.
These are part of the 30 that make
up
the
Dow-Jones
Industrial
tors
,
of
total number
gregate dollar market value of all
Cyclical Years 1932- 1933, 1941, 1946 Versus 1953
on
Payments
were
198%
of
1929;
183% of 1941; and 208% of 1946.
distributions, the only sound
basis
speaks for itEarnings
and
the
may¬
table)
National Income
$3.08
divi¬
stock
some
The
per-share averaged $1.56 in 1929;
$1.68 in 1941; $1.49 in 1946 and
1929
versus
100
"
(as
above
209%
and
214%
100
146
because
the
percentage,
1953
210% of 192.9; 241% of 1941;
was
Stocks
208
.——an
DIVIDEND
The
dend
1946
183
230
16
Expressed
the
of
SHARE
-
198
132
Payments per Share
'
PER
-
100%
the fact
from
100
shown, greatly exceeded the
1953
229% of 1946.
same
in
Market
Aggregate
per-share in
229%
209
_
Sales,
Thursday, June 9, 1955
.
seen
that,
259%
241
Price
comparison
Net
of 1929; 295% of 1941
Companies averaged
$2.73 in 1929; $2.42 in 1941; $2.80
279%
_
SALES
EARNINGS
274%
Value__„„___
Plant
and
256%
payments
yet
This
self.
Dividend
464%
were
1,979%
__
to
$51.60
NET
465%
Depreciation)
Payments
IVXean
1953!
Taxes
<before
and
1941;
Income
Operating
Tax
520%
j
1929, averaged
- share,
in¬
$40.00-per-share
in
in 1946 and $118.30
1953
464%
__
Dividends
in
1946
be
210
__
Earnings
1941
.
May I stress
(Per Common Share)
1929
Net Sales
common
-
1953 Versus Other Years
% of Years Shown
.
1929
No.
Shares Listed N'.
Market
Y.
Market
Value
64.7
28.0
35.8
68.6
57.38
...
25.53
24.46
38.77
changes witnessed in the
national economy.
comparison
a
117.3
with
40.07
understand
1946,
we
of
On the basis of
Year-1953
the
would like to call
TAPJE IV
■
.
1,463.4 1,771.4 2,926.6
fully
will
reader
the
1953
(bil-
Average Price Per Share......
v-.;-"
1946
the great
1,128.0 1,302.0
•'Oris)
follows:
1941
Stock
(millions)
Aggregate
years
Average
STATISTICAL RESUME OF 30 ISSUES COMPRISING PRESENT DOW-JONES INDUSTRIAL AVERAGE
COMMON
—No. Shares Common
STOCK
—(Millions).
OF
Allied
Dec
31, '29
.
Chemical..
American
Chrysler
$521.6
$646.6
n.i.
n.i.
n.a.
436
296.9
435.4
147
n.a.
n.i.
n.i.
$27.6
300
130.5
152.4
117
n.a.
n.i.
n.i.
n.a.
42.3
320
2,930.4
6,708.0
229
1,107.6
4,490.6
405
6.5
283
461.8
397.2
86
246.7
1.088.4
441
3.2
9.6
300
297.6
479.1
161
342.8
2.082.0
607
I
4.4
N.I.
1,166%
$3.2
$37.3
j 281%
2.9
31.7
hi.
N.I.
2.3
15.5
403.4
1,776.3
440
83.5
798.7
957
n.a.
n.i.
N.I.
3.3
58.0
1,758
70.9
366.3
517
5.7
161.0
2,825
n.i.
$77.5
■
1,093 '
674
5,217
125.0
198
160.0
513.4
321
375.0
3,347.9
893
48.4
267.1
2.5
2.7
108
222.7
193.7
87
n.a.
n.i.
n.i.
16.7
31.1
186
2.6
14.2
455
45.4
441
1,120.0
4.863.0
399
203.3
1.749.6
861
n.a.
n.i.
N.I.
3.7
404.8
10,941
2.3
17.4
757
400.2
817.8
204
n.a.
n.i.
n.i.
n.a.
n.i.
N.I.
N.A.
N.I.
N.I.
7.2
/
2.4
552
N.I.
394
1,731.0
2,495.9
144
415.3
3.128.1
753
49.4
496.8
1,005
N.A.
N.I.
5.8
109
248.0
349.1
141
120.1
783.0
C52
20.1
71.4
355
2.3
35.0
1,522
41.8
87.5
209
517
28.1
1,054.0
3,751
™_____
Foods
General
Motors
28.7
1,672.0
5,247.9
314
1,504.5
10,028.0
1.4
4.5
321
86.7
239.5
276
256.2
32.6
153.7
472
4.4
1.210.5
473
Harvester..
13.7
311
348.3
450.6
129
n.a.
n.i.
n.i.
N.A.
n.i.
N.I.
Nickel.....
13.8
14.6
106
426.5
510.4
120
n.a.
n.i.
n.i.
27.5
115.1
0.8
3.2
400
93.0
279.9
Tire
International
1953
of 1929
in 1953
5.3
General
International
....
...
Johns-Manville
Loew's
8.7
n.a.:.
124%
%
(Millions)——v
,
in 1929
10.3
;
Kodak...
Goodyear
445%.
Total Tax Payments
r
1953
of 1929
Year 1953
Yfar 1929
8.9
Corporation
duPont
Electric
1953
5.4
Products....
General
%
of 1929
Year 1953
2.3
Steel™
Corn
Eastman
Year 1929
-Operating Income (A)%
-(Millions)
• -->
Etc.
-(Millions
of 1929
13.2
Tel
E.
I.
—Net Sales,
% 1953
Dec. 31,1953
10.9
'
Tobacco
Bethlehem
-(Millions)Dec. 31, 1929
2.5
Smelting & Rsf.
&
1953
of 1929
1.8
Can
American
Tel.
-Aggregate Market Value%
2.0
American
American
,
Dec. 31, '53
667
1,743.0
337.1
N.I.
N.I.
N.A.
N.A.
N.I.
N.I.
419
2.7
43.9
1,630
502
0.7
17.8
2,543
j
300
62.0
408
9.2
-^_-™_.™__
Inc.
46.2
1.4
5.1
364
21.6
61.2
283
116.2
177.6
1-53
18.4
11.8
64
1.6
1.3
112
TI.IIZ
0.3
8.5
2,833
7.4
161.5
218
2.1
488.7
23,271
0.2
31.5
15,750
N.A.
N.I.
N.I.
National
Distillers
National
Steel
2.1
253.2
348
103.6
n.i.
n.i.
146.2
840
1.6
69.3
4,331
1.3
9.6
738
494.0
827.0
167
193.3
911.1
471
24.0
126.7
528
2.5
62.4
2,495
4.5
24.2
538
1,476.8
372
415.4
2,981.9
735
41.2
321.9
781
4.2
153.9
3,364
Standard Oil of California
390.3
66.4
2,485
,!5tancF,''', nil; New Jersey
Procter
Sears
&
Texas
Carbide
United
S.
337.2
326
n.a.
17.4
12.8
28.7
221
770.8
1,519.7
197
n.a.
n.i.
n.i.
287.8
433
2.6
64.6
60.G
239
1,664.9
4.361.1
262
1,523.4
4.137.7
272
n.a.
n.i.
N.I.
N.A.
N.I.
N.I.
9.9
27.5
279
551.6
1,593.6
289
213.3
1.558.8
731
91.0
365.0
401
N.A.
N.I.
N.I.
Carbon
9.0
29.0
322
705.1
2,142.4
663
N.A.
N.I.
N.I.
s
o
a
1,373.0
1,044.4
76
1,118.3
3,861.0
345
323.0
1,880
&
4.
Aircraft
W.
7.3
25.4
Steel..
3.2
n.a.
304
n.i.
U
n.i.
26.1
322
2.6
16.3
615
362.0
815.2
225
216.4
1,582.0
9.8
9.7
99
682.0
494.9
72
303.0
721.3
206.4
571.3
$18,373.5
$39,765.6
$8,734.8
$44,607.8
•United Aircraft incorporated
in
277%
N.A. Not
1934.
Available
N.I. Not
included.
292.3
44.1
*
216.4
(A) Before
a
a
a
a
511
Electric
Woolworth..—...
Total
,
■
t>
8.1
"VVestinghouse
F.
.
_________
Company
"Union
U.
Gamble..
Roebuck
282
17.2
176.2
612
10.8
74.3
688
56.3
182
2.1
22.1
1,052
$186.0
$3,681.0
277.7
783.8
731
28.8
238
30.9
$1,683.0
$7,827.0
465%
1,979%
taxes.
STATISTICAL RESUME OF 30 ISSUES COMPRISING PRESENT DOW-JONES INDUSTRIAL AVERAGE (Continued)
CP™9N
Allied
Available for Common;
(Millions)
,
% 1953
'
ST°F
OF
,
ln
Chemical.
1929
I" 1953
$27.8
$45.2
Dividends Paid
(Millions)
,
,
of 1929
in 1929
163%
on
i,
Common
N
% 1953
In 1953
-Net Plant Value
(Millions)
,
>
,
of 1929
Dec. 31, 1929
224%
>
% 1953
of 1929
Dec. 31, 1953
Working Capital—
/
(Millions)
t
Dec. 31, 1929
402%
$113
,
Dec. 31, 1953
$179
%
1953
of 1929
159%
American
Can
$11.9
$26.6
19.8
27.9
140
10.5
15.2
145
127
241
189
44
American
136
Smelting
18.3
16.6
85
7.3
13.5
185
122
125
102
.American
69
116
Telephone
201.3
478.5
238
116.4
362 7
316
2 972
American
9,597
323
Tobacco
Nil
320
27.0
38.0
141
21.1
25.8
122
14
47
338
136
548
403
_____
35.2
127.4
362
15.6
38.3
246
455
746
164
179
21.9
74.8
342
13.3
52.2
393
84
346
413
71
14.5
14.4
99
10.1
10.2
101
40
88
217
56
402
192
34
224
Corporation™
224.5
311
60.2
172.6
287
170
552
324
85
533
630
49.6
230
ic.9
31.9
189
69
223
323
79
186
236
165.7
256
121.6
306
450
870
Bethleheni
CJhiysler
Corn
E.
Steel
Products
I
&
Telegraph
___________
duPont
aastman
72.3
—
Kodak
Genera
Electric
Genera
Foods
General
21.6
^oodyear
64.7
<
„
.
___™_
206
370
180
140
14.9
15.4
1C3
24
'86
369
27
348.8
223
416
1.536
369
248
177
1,236
665
156.6
401
356
191
346
29
N.I.
241
243
39.7
52
13.1
45.5
355
5.3
13.1
247
102
192
188
116
31.4
36.0
115
no
27 0
246
115
321
279
222
Nickel
20.2
51.8
256
12.4
34.3
275
136'
176
129
32
6.1
16.7
274
2.3
13.5
587
26
98
331
12
4.3
103
N.A.
N.I.
N.I.
N.A.
__™_:
Procter
Sears
______
Inc
11.8
Distillers
National
•___
Gamble
Standard
Oil
of
Oil
of
New
W.
121
5,050
14
69
277
403
21
31 3
313
34
229
676
61
66.5
610
88
211
240
74
767
104
189.5
407
31.5
86.0
273
474
1,038
219
267
552.8
457
46.5
585
732
2.705
369
102
613
I
.
272.1
,
113
a
a
*
*
1,542
1,970
123
441
346
79
71
286
400
114
630
552.
48
141
293
$3,528
$1»,215
192.6
399
28.5
93.4
323
311
1,018
327
102.8
290
20.7
72.2
349
164
658
402
a
a
«
a
a
196.9
114
63.8
78.3
123
72.4
270
11.0
31.7
283
Aircraft
incorporated
35.7
26.9
$1,412.0
$3,612.0
in
1034.
N.A. Not
Available.
75
23.4
256%
N.I. Not
.
Included.
24.3
$776.0
$2,129.0
,
104
274%
243
273
1,339
485
303
-
26.8
Woolworth______-
645
10.0
10.9
172.4
Electric
N.I.
1,708
392
,
'
35.4
Steel
160
592
282
52.1
117.9
*■
'Total
•United
2
8.5
23.9
48.3
Carbon
Aircraft
WesUnghouse
F,
&
4 0
None
None
'
499
136
148
120.9
Jersey
Company
Carbide
States
417
46.6
California™™
Union
United
3,333
30.1
Texas
United
37
10.0
49.2
18.5
Roebuck
Standard
4.4
0.3
11.8
•
1
Steel
&
61
245
Harvester
^oew's
269
27.1
International
National
170
585.2
international
Johns-Manville
311
238.8
_
__™___
Tire
$369
19.4
—
Motors
$92
85
237
$8,588
$23,944
1
356
279%
,
232
218
203
268
♦
28t%
Number 5436
Volume 181
.
The Commercial and Financial Chronicle
.
.
\
(2669)
37
.
,.
attention
the
to
following
per¬
centage increases:
Gross National Product
Gross
Private
..
At the
gate
70%
Savings
Insurance
in
York Stock Exchange
approximately $69 billion.
74%
National Income
Life
New
Force
Compensation to EmV ployees
'
78%
Behtar -Income to Individuals
Government
with
In
lion.
find
the
-
.
the
dollar
we
of
$14.2
was
bil¬
1946, the dollar value ratio
income was 8.6%.
'
1953, the dollar value ratio
national
income
was
follow¬
daily transactions
Corporate Taxes Paid
147%
Corporate Long-term Debt__ 84%
Corporate Short-term Debt_ 88%
At
the
terial
245%
and
further
any
indicates
there
based
the
on
1953
$5.12,
that
changes
ma¬
comparative
on
1946.
All
was
things
strong
a
that
tremendous
those
1946!
the
44.
industrial
registered
These
ket
the
on
basis
have
we
table,
shown
the
in
of
shares
listed
in
5.9%,
was
the
the
Whereas
was
closing
10-year
was
Mean.
in
year
1954
the
the
Mar¬
significant
1954
It
5
In
x.
willingness
preceding
price of all
difference
on
to
was
in
closing
the
the
prices
investors'
accept
lower
a
yield in the latter year (1954) as
against that prevailing in 1953!
York
What is Ahead?
If
the
reader agrees with the
that, on the basis of the
facts and figures presented in this
article,
very
sound
economic
was
writer
true
is
of
that
the
over
these
from
creased
as
x.
19.5
already stated,
1953
versus
predicated
was
the
price-per-share
average
13.1
was
rate-of-return
the
prices
New
The
mean.
the
down to 4.31%. As
share, while at the end of 1953,
per
10-year
yield as averaged
for this Group was 5.74% in 1953.
Stock Exchange in 1946 was $38.77
all
1950-1954,
of
were
Stock
the
on
riod
years
125%
of 1953 averaged
1954, the similar ratio
excess
the
stock
average
value
the
31st
end
and
prevailing in 1946 and in 1953! As
year-
over
the December
177%- of
system
improvements
market
Yield
At
in 1953, the price stated of 55
$40.07.
average
1944-1953 (mean price)
years
proved
nation
NOT reflected in the
Dividend-pattern follows:
The
considered,
foundation
The average High and Low of
these 30 issues for each of the 10
his
still
economic
denominator
1950-1954, $2.97, and for the
1954, $3.13.
statistics
the
price-times-earnings ratio at the
available
and'
The average for the 1947-19481949 years was $2.14; for the years
were
per
only
had achieved results far in
as
The
end of
arithmetical
$56.00. At the
at
At the close of December 31,
1954,
the
shme
group
was
selling at
of
averaged for the 5 years
1950-1954, as compared with $5.12
for the year 1954.
corporations
their
largest
mar¬
up
rate-of-return
considered) '' is
conclusively
—
compar¬
things
common
underlying denominators, that
this increase in price pos¬
sible. For the three years — 1947,
1948 and 1949
these companies
averaged Earnings of $4.28-pershare, which were increased to
increased substantially, and there
was no undue speculation in 1953,
for
listed
in
reported
profits in history! Dividends
of
stocks
and
1953
1946, the aggre¬
gate market value of all preferred
rommon
142.44%
was
analysis of the preceding
an
Market picture:
end
of
The conclusions arrived at from
So much for the growth-factors
1953 vs 1946. Let us next review
Stock
ratio
made
4%
stock
common
that,
Summing up at this point, we
can
safely and accurately state:
At the end of 1953, every con¬
its
the
study
now
(which repre¬
now
a
individual
shows
the
average
share was
end of 1954, the average price per
share of the same Group of issues
was $78.00, the 1954-figure
being
141% of the 1953-price.
vestments!
$2,338 and the average
us
1953,
price
long¬
like a
."
share to $78.
Let
isons between 1955 and 1929!
in
the
were
has
30
ceivable
amount of
a
ed
issues
attractive enough to warrant his
purchase of common stocks as in¬
hold¬
our
$117.3 billion. Study of the select¬
any
available in the
that
(all
in
eliminate
Outstand¬
share each
one
4.1%,
downright bargain at the
was
he
mind
value of
4.6%. This factor in itself, should
and Local Debt______ 88%
Aggregate of all Debt (Pub¬
lic and Private)
40%
Credit
The
ket)
Average,
made
1929
3%
ing Increased
shares.
purchased
of
anything
6%-return
a
time it
the
ings would have increased to the
$125 billion to National Income in
.State
Consumer
reported
Industrial
purchase
or
sented
com¬
comprising
yield
speculating! Unable
to
er
follows:
as
we
the value of stock transactions of
Mortgage Debt (Farm)
45%
Mortgage Debt (Non-Farm)_130%
Federal Debt
million
1.4
issues
1955, the total value of
4.6%.
For both 1946 and 1953, average
ing:
not
5%
individual
current
a
which brings to light the real sit¬
uation!
The
average
buyer-ofcommon-stocks today is investing,
of these 30 issues (the result of
averaging the High and Low for
each of
the 5, years
preceding
1954), it would have cost us a
total of $1,553 — an average price
of $52.00-per-share. As of May 23,
all
national
to
find
If
$15.5 bil¬
value
30
Dow-Jones
.
all
of
,C
In
Ledger. On the Debit-side of
we
value
the
mon-stock
preceding
was
transactions
In
to
much for the Credit-side of
Ledger,
1953
stock
„_____
the
the
dollar
the
Using
lion.
Profits
(After
Taxes)
36%
Corporate Dividends Paid
62%
the
in
against
tical material in this article.
percentage-in¬
transactions
In
So
rose
just about
or
further
a
friends, Studley Shupert & Co., of
Boston for permission to incor¬
porate certain important statis¬
figures
•
1946
stock
(Before
_
I
the
summary.
72%
Taxes)
Corporate
the
shown
creases
60%
Profits
■I
line
Receipts. 87%
Corporate Assets
Corporate
in
88%
——
____
Total
period,
approximately 71%,
Total
t
this
show that the Stock Market
predict
rise in market prices in 1954.
I
am
indebted
to
my
good
1953, the aggre¬
$117 billion.
was
Over
107%
60%
which to
upon
was
of
end
aggregate
the
same
shares
pe¬
had
reasons
in¬
billion
$68.6
to
prevailed for the advance
Continued
on
38
page
TABLE V
ALL DATA PER COMMON SHARE
30 Issues
Dividend
NAME
OF
COMPANY:
Comprising the Dow-Jones Industrial Average
Earnings Pattern
—
'
/
.
V
Each
1947 to
1950 to
1954
Year
1949
1954
Cash
Dow-Jones Industrials—
from
Average
Average
1954
Basis
§
Allied
1921
3.74
4.72
4.73
8.20
127
123
Chemical
&
American
Can
American
Smelt.
Dye
!.
American Tel.
American
1923
Tobacco
Bethlehem
E.
Products
2.53
4.17
5.17
3.30
4.75
11.88
11.91
5.22
131
6.12
6.64
84
11.57
13.18
22.88
8.55
2.13
12.18
2.65
-v
-7.00
;- v
8.01
1926
11.05
5J90
-
-
3 mos.
1954
Distrib.
Div.
§
•47-49 Av.
1954
3.00
3.00
63.6
3.00
143
12.1
8.7
0.41
0.42
0.92
1.34
1.55
50.6
1.55
161
10.9
8.5
0.58
1.37
2.49
2.80
2.00
54.2
2.40
200
16.3
7.1
13.8
11.1
7.5
11.11
12.02
9.00
9.00
9.00
75.8
9.00
217
4.5
6.1
t85.0
177.0
3 mos.
1.26
175.2
1,31
3.75
4.08
4.40
69.2
4.40
125
10.4
8.6
9.1
9.8
3 mos.
3.51
9-9
2.73
2.77
4.37
5.75
37.8
6.00
137
11.1
11.3
13.6
17.7
19
20.6
3 mos.
0.88
3.96
4.04
6.75
4.50
101.0
3.00
124
24.2
3.1
10.2
8.8
3 mos.
Motors
1.22
1.20
1.03
1.20
1.20
63.5
1.92
114
11.3
10.6
18.6
15.0
3 mos.
14.3
1.56
2.00
2.61
4.35
5.50
77.1
5.50
182
16.1
19.9
27.7
37.0
144
35.5
3 mos.
0.66
0.80
2.20
163
25.7
26.0
184
3 mos.
0.56
0.58
0.59
1.20
1.47
61.5
1.60
194
*115
9 mos.
2.90
4.02
2.08
2.53
2.75
t57.7
3.00
2.13
3.43
2.58
4.60
5.00
62.2
5.00
1.32
0.92
2.63
3.01
3.80
5.45
1917
_
_
Johns-Manville
(i)_
3 mos.
190
3 mos.
1.30
3.88
3.71
2.24
4.35
58
3 mos.
0.24
2.26
3.83
4.34
5.56
192
4.41
6.71
5.24
8.92
119
3 mos.
0.82
1.35
1.21
1.28
2.02
95
28 wks.
0.62
1.13
1.57
1.91
1.41
52.2
1.63
32.6
National Steel
(j)—_—
(k)—
10.8
12.7
11.7
2.00
115
10.1
4.9
10.2
11.6
8.6
2.20
193
12.5
16.7
36.0
38.0
37.3
0.86
1.97
4.10
4.25
61.1
4.25
162
12.3
10.6
17.8
21.5
18.2
1.50
1.12
0.90
8.8
10.1
93.9
0.90
100
5.6
5.0
3.66
2.00
1.38
2.33
38
3 mos.
0.29
0.34
2.00
1.55
1.00
77.5
1.00
132
16.5
5.0
13.8
8.6
4.81
5.99
4.13
9.27
86
3 mos.
0.87
1.53
1.52
3.02
3.00
50.4
3.50
122
12.7
7.1
21.4
25.3
19.2
5.36
14.85
*5.42
*6.67
*101
3 mos.
4.13
4.66
2.67
3.04
3.45
155.9
3.45
*133
20.0
*14.0
16.8
113.1
*13.9
5.82
6.79
117
2.08
2.56
3.05
5.91
6.70
10.50
149
3 mos.
1.74
1.76
1.64
2.69
2.89
8.42
8.94
13.59
177
3 mos.
2.44
2.70
1.60
3.98
4.55
11.96
Texas
••
Company < q).
United Carbide & Carbon
4.93
6.75
8.24
167
3 mos.
1918
3.13
3.59
3.10
6.34
99
3 mos.
United
Aircraft
1936
2.66
5.37
7.66
11.94
288
United
States
1940
2.22
3.21
3.23
8.19
145
3 mos.
1935
4.14
4.64
5.06
7.37
122
3 mos.
1902
_
(r)
Electric.
-
1912
-
NOTE—All data shown above
are
a
Industrials
3.23
per common
(a)
Adjusted
(b)
7.5
49.1
-
3.00
138
21.9
12.7
11.2
11.8
t46.2
3.00
185
15.2
*14.6
31.7
t27."2
*26.6
t46.5
5.00
198
13.1
*14.6
23.4
t26.6
*26.9
11.2
2.04
1.63
3.29
160
12.5
13.7
22.5
21.9
22.5
0.98
1.64
2.50
2.50
69.6
2.50
159
15.8
9.4
27.4
30.2
27.6
JL'L
1.46
2.38
f'3.50
44.4
4.00
304
8.1
17.6
9.2
10.2
10.0
1.48
2.49
0.94
1.55
1.50
48.3
2.00
141
7.6
7.3
16.3
19.2
20.1
1.61
0.75
1.30
2.10
2.50
45.3
2.50
187
10.4
8.7
12.1
7.6
12.5
2.50
2.50
2.50
77.4
2.50
118
14.4
6.9
10.4
8.8
7.8
0.74
3.75
48.7
3.75
'
3-for-l
a
on
21,
2.78
■
___•
:,V •" '<
,
2-for-l
a
split
1955.
(e)
stock
May
on
(d)
June 15, 1949.
66
4.19
1953
share basis.
Adjusted for
for
4-for-l stock split
1.85
9.8
'
4.21
on
stock dividend on March
57c
10.1
55.3
5.21
a
7.4
163
14.8
65.0
5.05
for
18.4
2.00
4.49
justed
20.6
2.90
4.98
a
19.0
2.05
1882
1951.
*9.1
22.5
2.49
1912
—_
Dow-Jones
t9.3
1.54
'
1935
Adjusted for
17.5
9.5
0.64
"
Standard Oil of California (n)
(c)
14.2
2.00
0.40
r'
_
Standard Oil of N. J. (p)
1955.
2.00
27.6
21.1
*11.0
24.0
208
15.5
16.7
1851
_
Woolworth
16.2
13.6
1935
National Distillers Products
Steel
'
1907
__
Gamble
178
8.75
1934
(hl_
_
11.74
5.04
1935
_
9.08
4.32
1923
Nickel
7.40
2.28
1918
(g)
Harvester
International
5.10
1937
International
30,
4.4
3 mos.
3.39
Nov.
11.5
214
*5.81
on
12.2
121
2.46
LEGEND:
13.6
9.81
*4.66
split
20.0
2.38
1.95
Westinghouse
v
1954
20.5
1.75
t4.27
_
'50-54 Av.
18.8
7.33
1.34
Roebuck
Deprec. & Amort.
,
'47-49 Av.
1.89
4.07
Sears
^Capitalization—,
Average
2.33
5.64
1922
&
Sales
Average
1.29
3.42
1902
Procter
Indie.
1955
'■'
1.44
1899
Inc.
before
1904
(ej
Loew's
% Profit Margin
on
1920;!
(c)_
Tire
% Return
Index of
160
(d)
Goodyear
1954
Current
%
% of 5 yr.
Earnings
1.15
12 mos.-F
"
Electric
General
1954
'
1
Eastman" Kodak
General
1950 to
1949
X
1954
3 mos.
58
9.07
1939*
,
Refining, (b)"
tI., duPont
2.06
5.73
1905-
Steel
1947 to
Interim Earnings-
,
Period End.
1935
(a)
Tel
''Chrysler- Corpora tion_:^_.^JlZ'
Corn
sh.
1881
Ref
&
&
per
Dividend Pattern
r
1954 Earn.
Adjusted
20,
Ad¬
for
figures.
a
11950-1953
3-for-l
JOperating
average.
stock split on June 11,
§1947-1949
ratio.
(f)
1954.
30.
(k)
Fiscal year
ends
January
31.
(n)
stock dividend
Fiscal year
split
on
June
Fiscal year ends
Adjusted for a 5%
June
11,
November
on
1951.
(h)
1
100%.
Fiscal year ends March 31.
(g) Adjusted for a 2-for-l split on January 22, 1955.
ends October 31.
(i) Fiscal year ends August 31.
(j)
June
=
21,
15, 1954.
(p) Adjusted for a 2-for-l stock
(q) Adjusted for a 2-for-l stock split on
Adjusted for a 2-for-l stock split on June 2, 1955.
1951.
(r)
ALL DATA PER COMMON SHARE
30 Issues
NAME OF
COMPANY:
Senior
,—Securities—,
Dow-Jones Industrials—
Allied
Chemical
&
-Price
r~
Ranges-
1946
1954
High
^
r-1950 to 1954—,
High
V ulUC
1947
1955
Mkt. Price
as
,
5Yr. Av.
,—-Market Price
Mean
High
Low
5-23-55
in % of
Price
of
Low
'50-54 Av.
21.98
53
105
54
113
93
113
71
25.57
27
49
23
45
38
39
33
118
9.21
9.25
26.80
46.60
31
53
25
50
40
48
38
87.40
133.42
150.66
200
178
140
187
173
184
41.60
35.80
52.85
100
78
54
73
63
70
22.63
25.60
55.00
103.00
38
111
30
148
102
7.19
36.95
66.30
71
98
56
83
66
9.29
(a;—
Tel
Tobacco
Steel
3.00
11.27
15.40
24
30
20
31
27
157
,
in % of'54
Bk. Val.
159
15.22
34.40
Smelting & Ref.
&
42.10
9.91
68.12
American
American Tel.
29.95
4~76
Can
Bethlehem
■
r
1954
1947
Dye__
American
American
Comprising the Dow-Jones Industrial Average (Continued)
Book
Av. '50-54
Price Earnings
Price to'54
Bk. Val.
'47-49 Av.
'50-54 Av.
1953
1954
169
12.5
15.1
13.6
18.8
153
129
11.0
12.6
14.1
16.8
126
103
82
4.9
8.5
12.2
11.2
157
117
125
104
17.3
13.3
13.4
14.0
64
109
132
120
9.7
10.8
11.7
10.0
130
55
236
126
53
4.0
4.8
3.8
6.1
77
75
103
116
113
5.5
12.4
9.0
30.1
30
7
268
24
125
195
156
14.6
12.7
13.4
15.5
20.1
18.7
■
"
'Chrysler
E.
Corporation
Refining (b)
._—
Products
■Corn
General
5.90
•General Foods
(f)
____
General Motors
Goodyear
Tire
International
(g)
—
Harvester
International
(h)
Nickel
Inc.
Distillers
National
Steel
&
Products
200
192
98
196
587
300
14.7
17.7
30
82
67
80
43
186
330
177
11.8
14.3
15.7
49
14
56
46
52
25
208
155
217
9.3
12.6
13.7
17.7
*13.38
20.60
*32.90
56
80
40
85
75
85
53
160
258
161
10.2
12.4
12.1
14.7
6.62
14.35
34.70
40
99
34
107
89
97
59
164
280
170
6.6
8.0
9.2
23.05
20.40
27.93
24
25
12
63
51
59
18
328
247
64
5.8
7.6
8.8
12.5
13.29
33.70
46.20
34
39
25
40
35
38
32
119
82
69
7.3
9.2
8.4
14.7
43
13.2
15.0
8.7
Gamble
(j)
1.89
17.07
24.98
60
25
66
57
64
40
160
256
160
10.1
11.7
10.9
1.26
29.25
48.00
56
92
36
97
82
81
63
133
175
131
9.6
9.8
10.6
14.7
9.38
27.35
27.40
41
20
11
21
17
21
16
131
77
58
15.3
13.5
14.2
2.95
17.34
18.10
22.72
32
37
17
23
20
21
25
84
92
110
5.7
14.9
17.4
14.9
5.46
__—
—
7.50
29.37
54.55
31
66
42
73
58
66
48
138
121
83
5.8
8.7
6.9
13.6
*36.27
47
99
53
162
91
95
70
136
262
*193
12.8
tl3.8
*15.1
*15.2
57
151
11.7
*3.61
0.29
—
25.05
13.7
Carbide
United
States
227
151
7.6
10.9
12.2
27
80
29
82
73
78
51
153
188
*123
5.7
8.7
8.3
*57.40
37
112
33
120
107
113
69
164
286
*120
7.1
8.2
8.6
8.80
31.35
54.05
34
88
29
101
83
91
54
169
168
100
6.2
7.9
7.7
5.17
14.48
13.75
23.08
42
89
40
94
80
92
64
144
399
277
12.1
18.2
19.3
7.19
29.52
38.04
31.
79
21
94
66
73
39
187
192
101
7.4
7.3
6.6
16.79
25.92
23.37
38.88
16
38
13
45
34
43
21
205
111
54
5.7
6.7
5.2
22.95
26.20
44.00
39'
8.8
11 52
—
(p)
Aircraft
United
50
*41.50
33.05
7.99
(n)
Jersey
(q)
&
37.83
23.57
80
29
83
67
70
45
156
159
102
6.6
9.7
10.2
12.9
0.47
Union
20.42
*2.66
*15.35
10.30
27.05
32.60
63
55
40
53
46
47
46
102
144
141
11,2
14.2
14.8
17,1
—
Standard Oil of New
Company
8.50
L53
8.78
5.34
(k)
Standard Oil of California
Texas
60
69
17
1.89
_
Roebuck
Sears
170
36
11.52
4.06
(i)__—
National
Procter
57
24.24
10.70
Johns-Manville
Loew's,
32.70
4.99
5.96
——
14.51
14.91
19.30
(e)
0.26
9.20
(d)
0.36
2.53
4.70
Kodak
Electric
5.26
0.34
(c)
duPont
I.
Eastman
Carbon_-__:—
•
79
'40
86
74
86
*8.3
10.3
'
'
8.9
*
Westinghouse
Steel
(r)
Electric
Woolworth
NOTE—All data shown above
LEGEND:
split
1955.
on
Dow-Jones
Nov. 30, 1951.
Adjusted for
(c)
justed for
a
57o
a
are
on
Industrials
a
per common
(a)
share basis.
Adjusted for
a
2-for-l
(b) Adjusted for a 3-for-l split on
4-for-l stock split on June 15, 1949.
stock dividend on March 21,
1955.
(e)
♦1953
stock
May
20,
(d)
Ad¬
Adjusted for
figures.
a
11950-1953
3-for-l
(g)
stock
average.
split
on
June
30.
(k)
1954.
(f)
Fiscal year ends March
1955.
(i) Fiscal year ends August 31.
Fiscal year
8.1
tOperating ratio.
June 11,
Adjusted for a 2-for-l split on January 22,
ends October 31.
.
25.8
ends January
31.
(n)
(h)
31.
Fiscal year
fj) Fiscal year ends
Adjusted
for
a
5%
stock dividend
split
on
June
June
11,
1951.
on
November
21,
(r)
1951.
15,
(q)
1954.
<p)
Adjusted for
a
2-for-l
stock
Adjusted for a 2-for-l stock split on
a 2-for-l stock split on June 2, 1955.
Adjusted for
The Commercial and Financial Chronicle
(2670)
38
.
.
Thursday, June 9, ,955
.
b
■
that
both in agree¬
multiply the latest dividend-pay¬
by the figure 25, and the
prefer ^ to
plow
them
back into research, plant expan¬
sion, etc.
Some day, such re¬
search and expansion may pay off
and dividend-payments be jumped
result will show
100 %
assume
37
Continued from page
that
ment
things
ot 1929!
1955 Is
in
stock prices, then the
common
important question to be answered
is whether or not the financial
it is now constituted
warrants the conclusion that5| all
structure
as
things considered, prices of com¬
mon
stocks are not over-valued,
of the general outlook
activity.
in the light
for business
chase
conditions
tain
stocks
.
.
.
only one answer, as we see it:
Barring an unforeseen collapse, or
an
adverse development in busi¬
conditions
is
what
effective
sources
.
.
.
.
.
of its natural re¬
available labor sup¬
executive talents
.
.
use
.
machinery
.
most
and
possible
greatest
ply
tljis
terms,
simple
to
.
and
equipment . . . not forgetting its
transportation
and
communica¬
tions-systems. Backed up by cap¬
ital,
results will
the
be
fol¬
as
(a)
Full employment
We,
objective,
records
breaking
practically
wages
.
have
we
...
unemployed
no
is
income
.
.
(c)
ple common denominator of eval¬
uation, which may be used as a
you
.4%.
the
$50-price in the
basis to determine his
and the $75-price means the latter
is worth one-and-one-half times
I
has
invest¬
own
have
used
this
work in the field
the
evaluations and, since
stood
certain
will
it
the
over
up
do
in
so
In
basis
of
the
calculation
the
arithmetic.
simple
Begin
by
given
a
work, I always
In
mind
reasonable
common
illustration,
of
purposes
your
let
this is
use
with
connection
all previous records . . .
substantial savings will be made
; V
•
,
GENERAL
MOTORS
V.'
''''*■/
create
no
way
in the world to
larger supply of stocks
except through the development
■■
,
Net
a
Sales
industries
new
the
or
%
of
expansion of old ones. Any
citizen
can
participate
in
this
the prosperity of the
and
comprise
that
corporations
and
operate under the American sys¬
tem of free enterprise.
754%
Net
$1,805.3
$494.2
35.2
63.6
178.3
28.1
264.6
1,054.0
839.0
248.3
171.0
598.1
806.0
i
(after
Income
Dividends
Deprec.
_i_
•
■
_
Taxes)
&
Plant
Net
29.7
236.4
_
Plant
2,256.4
610.0
930.2
3,053.4
Number
3,920.7
298.5
1,536.3
903.4
1,236.2
Market
44.0
87.5
87.5
.—$1,672.0
Common
(December
Value
$2,817.1
$5,247.9
$8,466.9
_
—
-
31)
on
than
less
To
dollars
to postpone the im¬
spending of dollars until
means
mediate
date. This action in¬
future
some
volves
sacrifice,
some
sacrifice deserves its
and
reward.,
own
is
stocks
amount
dollars
the
and
he
of
income
and
saves
on
invests,
hopes that the dollars saved
and
in
invested
will
increase
stocks
common
time
as
Sales
Average
Yield
goes
on
____
_
_
_
'
_
Average Price Percent of D-J
Indust.
Avg.
(as
it
stands
now
will
undoubtedly be
controlled in the future by the de¬
;■
v.
■
.....'•
Inventory
.
1929
Stock
Market
»1.-84
6.71
9.08
1.50
4.00
5.00
11.00
16.00
9.20
5.1%
6.5%
10.9%
20.6%
22.6%
23.1%
_
1944
1953
$6.93
17.13
3.28
4.55
4.73
8.11
7-27
3.21
3.45
2.71'
1944
1953
11.6%
speculative
Net
day
expected
urge
en¬
profit
a
on
in
Percent
Total
of
Sales
Capitalization
4.0
in income backed
by
expectation of reasonable ap¬
preciation in the value of any
Market.
makes
The
Cash
Items
Current
Times
Assets'
Current
Times
6.8
8.5
in
.
10
up
of
.
into
A.
_
21.3
11.6
10.8
$0.73
$2.04
$2.66
$0.43
5.8
5.9
or
20%
1944
1953
with
quickly!
the
Stock
institutions
investor-money
pension
now
funds
Market
.
coming
.
.
permitted to
v-.'v.v.-
■..
.
and*
concern
been
have
closely
interwoven.
,
even
greater problem of the
qprileading enterprises and the ensuing effect
corporate management.
*
*
/^yestments the savings of the lower and
income
which by and large still
groups,
possibly not good enough. Of the estimated $9
new
money available each year to fiduciac^L. trustees only about one-sixth is going into
equities. This may not suffice to provide venture
capital, for our rapidly growing economy, as evi¬
denced, by the overwhelming preponderance in re¬
cent years of cash generation from retained corporate, earnings over new moneys obtained in the
capitals market. Also, as an increasing portion of
savnigs goes into institutional funds, the conservav,.tism of fiduciary investors, dictated by their role
'as trustees, exacerbates the difficulties of a young
—
Carl M.
1954
commend this calm and
1.0
Liabilities
_
0.8
0.7
0.7
3.1
2.3
1.6
1.7
$2.25
$5.67
$16.54
^of
with
pur-
a
a
$15.15
{question
thoughtful discussion
dispassionately
always
not
ap¬
proached.
Financial Position
(b)
(% Current Assets Represented By)
1929
Cash
1944
34.8%
Items.
1953
27,2%
Inventories
-
31.8
31.0
42.6
42.7%
16.0
51.6
The
IT.3 V
„
Companion Life Insurance
Compdhy of New York,
40.0
iate -of ''Mutual
100.0%
Totals
100.0%
100.0%
100.0%
Average
1935-1939.
Average
151.80
1.55
1949-1953—
Average 1944-1953In
Year
1953
In
Year
1954
_
_
T.38
7.05
Average
4.40
4.80
6.70
-'"1^
!
1
1
^
as
of
Cull¬
member of the
a
by
of directors.
Co., has been elected to
!
Cullman,
man/of the
~
,
1
1
I
5,0.0— :4
!
!
2.99
4.00
'
!
:
New
thority*, dnd'^his
JosCptr Cullman
Ronald
it
was
announced
E. Kaehler, President
of the Exchange.
James
Mr. Cullman succeeds his uncle,
^"Howafd
former
chair-
rector
"
1.90
1941-1945
Kaiser &
its
Calif.—Ed¬
Stock Exchange,
Edgar' Cullman,
Brothers
board
Dividend
$2.86
1.97
—
at
FRANCISCO,
Foley, general partner of
membership in the San Francisco
man
Earned
1929
Omaha,
R.
elected
-Per Share-
Year
of
SAN
win
affil¬
an
regular'quarterly board meeting,
Earnings and Dividends
In
New S. F. Exch. Members
Cullman, Director
1954
41.4%
13.6
Receivables
"
handling
;■
/business in obtaining equity capital."
..v-Loeb, Rhoades & Co.
(a)
the
1929-specu-
With mutual funds doing a
good
.
-
-
_
Liabilities
Current
Inventory per Common Share
willing to buy a 3%
rate-of-return, if there was any
promise
that the
stock
would
job
,
22.5
was
move
individual
^
18.4% "
20.3
5.5
^
interested
lator
^
£
6.0
12.9
Financial Position
the
the
Stock
„
1954
17.4%
16.4
of Gross Plant
Depreciation of Net Plant
Depreciation per Common Share
Today, the investor is primarily
he
in that cate¬
,
30.6
Depreciation
next day!
committments
„
^
.
Margin
Income
Earned
are
was
couraged by many people in high
positions, and the speculator of
that
—
Miscellaneous Data
Profit
readers
gory, I feel sure that this article
will have served its real purpose.
-
2.51-"
6.53
6.10
—
18.47
4.59
22.4%
Working Capital
Total Capitalization
8.34
14.25
1929
created by a
1954--:-
2.47
_
_L
-
$7.41
1.85
_
_
.
but
3.62
_
ket.
as
billion of
$8.54
30.50
Plant
Plant
fears
no
shun^cSfcgct purchases in the market. This is good,
1929
Net
-tkr-r-
medium
6.3%
1929
__
Receivables
Gross
per year over
10
or
stocksprices. The
into
•
8.70
5.7%
$7.98
:
_
cisions of millions of investors.
The
79.09
112 20
—
Only one conclusion is
possible, based on the material
presented in this article. The 1955Market
62.00
114.60
Ratios—Net Sales Per Dollar of
power.
Stock
34.70
29.94
13.00
29.50
48.45
1.80
_
Times Earnings Ratio—_
Average Price
both in dollars and in purchasing
price-wise)
$8.74
2.86
Price
at
1954
$10.88
18.06
i
_i-lX—A———
Dividends
1953
$8.16
31.50
Price
—
Earned
1944
$1.32
8.13
High-and-Low
of
Average
com¬
Having postponed the spending of
his
1955-dollars,
he
expects
a
reasonable
Value
Book
Net
-
explain.
to
easy
Capital
Working
any
Reward to the investor in
mon
1929
spending.
postponed
part of one's income and
save
is
5%
iciary investment has played a major part in
spreading the ownership of our great industrial
enterprises. Excepting personal trusts, where the
foenefiei&ries are highly concentrated in the top in¬
come brackets, institutional
buying has channeled
Per Share of Common Data
Saving represents nothing more
who
years, should
regards the fu¬
ture price level of the stock mar¬
be
*
Savings and Spendings
or
five
and
reasonable
a
1,350.6
41.8
_
.
of
with
next
If my
2,161.1
248.0
—
_
Shares
of
"
over
2,612.9
.
Working Capital
rate-of-return
concentration in relatively few hands of the power
356.6
379.5
416.0
—
—
the
individual-
price^tpere lies the
436.5
92.2
380.6
Surplus—
Gross
232.9
348.8
132.1
_
Surplus
Total
4%
a
satisfied
necessary conservatism of in¬
buying has contributed to the relative ~
scarcityjof and high price-earnings ratios for blue W.
chips'; The pressure of ever-growing funds for suit¬
able investment vehicles may serve as an element
of stalji$ity during periods of adversity, at least for
seasoned securities. And beyond the question of the
impact ?pf institutional transactions on security
$9,823.5
$337.1
.
sharp advance in price over the
future.
Any intelligent iinvestor, however, in this day and
age, who is satisfied to purchase
near
stitutional
750%
$1,743.0
113%
320%
Total Taxes Paid___„______
ued
effort,
$10,000.0
'
•;
>:;r,;,.-a.r
tion
1954
$4,362.0
1935-1939____
Average
Operating IncomeDepreciation
contin¬
1953
ratio.
that
Undoubtedly the collective decisions of fiduciary in¬
vestors §|ie a major factor affecting the fluctuations
,
1944
appear
corporate pension funds, personal trust funds and
nonprdf§ institutions has been a subject cf lively
discusses. In this debate fact and fancy, gratifica¬
preced¬
$1,504.4
_
of
1929
V'?.''-V
■
Sales.
Net
may
panies, savings banks, open-end investment trusts,
(In Millions)
There is
cases
increasing importance for security markets
insjtilutional investors such as insurance com¬
of
the price-
CORPORATION
supply of common stocks is lim¬
some
V
of
Overall Statistical Data
ited!
'■
sound
Example of Corporate Progress, 1929 Through 1954
millions of our citizens. And,
in
"The~
TABLE VI
strange as it may seem, the actual
gen¬
costs-
it
ing, the so-called "growth factor''
must be given consideration. Some
companies, rather than pay out a
large amount of earnings in div-
us
in
and
prices
That, while on a priceearnings - ratio, individual
reduce
have
undoubtedly
of
we
Well Considered and Well Said!
sub¬
a
a
the
prices
stock
as
price
and higher
a
may see rec¬
in:rmany
and
.
ratio, rather than
price-times-earnings ratio.
the
investment
stock. For
on
total
the
We do not expect stocks to show
directions.
caSe
world
market
certainly
.
.
in
Dividendjpayments both in
between
open
times-dividend
own
rate-of-return
(d)
basic method of evaluations. In my
is
establishing in your
what you consider a
.
opinion,
my
own
The
in
former
the
part of
improved
living.
rate-of-appreciation
all
will
This
in
stantial gain in principal value.
I
years,
The difference
in
the
high, it must be kept
mind that higher dividend r$tes
will
to
earnings reports.
It will still return
rate.
analyst
of
relatively
followin^conclusions:
broken
true
.
expected
to surpass
by
simply multiply
stock is then worth
dividend
ariyf
(b) The Year-1955
ords
-
stocks
intelligent
strong foundation.
figure 25 East & West
$75-
same
common
be
I
may
the highest in history
are
national
.
is
Production
1955.
for
look
the basis of the out¬
on
reads this
(g)
(a) Basically our national sys¬
tem of economy is built upon a
this $3.00 dividend-expectancy by
future.
a
nation have come
reaching this economic
as
to
closest
to the
earn¬
a-share, instead of $50 at the $2.00
feel
Substantial private savings
(e)
com¬
That
times
As things stand on this day of
May 25, 1955, \ye can only come
higher
that
assume
im¬
of
a
permitted to
offer for his consideration, a sim¬
article,
it
income
us
is made,
laration
the
who
the investor
To
of railroad
High wages
A large total of national
(c)
(d)
that
permitted the
market in 1929 no longer
one-way
exist!
calculator in my
A high level of production
(b)
prices
intelligent) in¬
the conditions that
and
for
an
advance
...
and
history
of-living increase.
preceded the devel¬
the^ojpinion
if seri¬
good
hedge his opinion.
ings are- running at the rate of
$6.00 per year and that the dividen-possibility is $3.00 for 1955.
Instead of waiting until the dec¬
dividual today should realize
ment-values?
lows:
.
is concerned, every
tools
.
plant
.
.
.
.
Let
puted.
the possibility of an¬
as
other 1929-collapse of stock
that the nation must make
means
down!
As far
possibility
the
dividend than the $2.00-rate
—
Utilization of Total
namely: Full
Capacity.
Reduced
the
as
objective
economic
national
the
known
sources),
proved-earnings
eral
if sound
...
is
for
(f)
is
has
consideration
reason
formation is available from many
might drive the stock prices
inflation
standard of
application ha# been given to all
factors
concerned, there is no
(and certainly, in¬
assume
opinion
an
The
the last 300 years shows that
over
pay
highest
maae.
(e)
.
funekynental principles
opment of
ous
Now
on
research
which will return you
ever
always prided myself in
that f do not ever hedge
of investment practice
4%.
history, in its attempts to
achieve
based
will probably be the
cases
more.
opinions.^ If
my
dividend-rate of $2.00,
$50.00,
or
or
the fact
West
The East &
is
times that
which cannot
one
4% rate-of-re¬
a
paying $2.00 on the
basis of the latest figures, against
which
the
company
is earning
$4.50. You can afford to pay 25
ply of common stocks available to
all of these groups, there can be
ness
simply
Next,
I have
instance:
common
period of be foreseen
now, there is no sign
develop in the world of even a mild re¬
a
high standard of living for its
cession,
let alone
a
depression
people, must make every effort to
that
Every nation in every
(all
reasonable
is
v,;,:-/
For
to
their
limited sup¬
on
and with a
.
turn. '
cer¬
with wealthy
.
.
holding
investors
4%
considered).
idends,
ment
under
stocks
common
are
we
<<v.
•
•
York
Port
H.
and
Zilka,
an
officer, di¬
voting stockholder
of
Au¬
father, the late
II, as directors
lis
Zilka, Smither & Co., Inc., Port¬
land, Ore., has also been elected
to
\
membership in the Exchange.
\
Volume 181
Number 5436
.
financial
The Commercial and
.
.
Chronicle
(2671)
Credit
than
Stringency to Reduce Rousing Starts
lower prices remain to be
anything like fully explored. But
'
'i
this
and loan official.
The
tightening of home
mort-
volume of housing starts this fall,
!.'/'•
according
N
o
to
m
r
a
n
Strunk, Execu
t i
Vice-
v e
President
the
of
| .?J|!£ •
L
and
o
a
n
some
As
this
vuRpte* of
tne
as
mileh
the
.'savings
and
Savings
Norman
S
that
for
of
1,-
the
year likely will approxi1,300,000.
-
will
biggest
be
still
home
history
the
building
exceeded
second
by
Mr.
in
Strunk
re-
added,
the result of many factors, including action by the FedReserve
Board
readily-available
growing
of
less
mortgage
the
of
out
volume
and
funds
terrific
the past
loan
eight months.
Although predicting increasing
competition in housing markets,
:
and to
4tme to put
fife number
is
on
check closely
also
the
tiift®f-$fflg
same
for
c#h^(5m
serious
on
June
A
in
panic
estate
"&-#iink
competitive
for
never
should
"We
on
jrom
the
funds
have
to
satisfaction,
the
fact
I
that:
*
(1)
eral
Eusiness
(2)
in gen¬
prospects
excellent.
are
The electrical industry, in
you
are
wholesalers, has
bright prospects.
which
very
,
wholesalers
As
(3)
the prospect
volume
have
have
you
of doing the biggest
business this
of
year
you
done, and the prospects
ever
for large sales next year are
Then
what
there
is
to
fine.
to
seems
nowhere
fact, at
been
the worry
be that your profits are
as good as your sales.
In
peak of sales, they have
discouraging that some
bluntly,
very
a
so
electrical
wholesa
have
ers
thought they could do. just as well
closing up shop and going
fishing. And a few of them have.
by
I
would
like
what
you
to
do
to
situation.
But
it
able
be
to
to
remedy
would
be
tell
this
pre¬
sumptuous for me even to try to
do this in any detail. This is a job
with
for those
expert
knowledge
industry which, as I made
at the outset, I make no
of your
clear
pretension to having.
However, I do have a few ideas
which might provide a little com¬
fort, so I propose to tell you
-
-
Your
shortage of profits, I take
primarily
arises
it,
causes.
One
is
very
from
severe
two
business
profitable
tne
Ford
officer
million
two
Ford
alike.
of special
or
route of
by
having
overwhelming degree, it seems to
that time is running on your
the
increasing
com¬
plexity of end products, all ex¬
cept
the
largest manufacturers
are,
things tfi&t
built into
are
^bpliance
pro¬
does, the #efailer s job of
keeping adequa .efy^ocked grows
by leaps and bounds, and with it
the
the
opportunity
and indeed
necessity of \$Mesaling.
are a lot«£4>btaer reasons,
There
of course, why wholesaling is here
to stay and grovel- And not the
least
important i&f—'them is the
surging effort of $uh people to get
away from the great metropolitan
masses of humanity into less con¬
gested communities? This move¬
ment
constitutes^an
opportunity
for the wholesaled The very dif¬
fusion
defeats
the
individual
manufacturer
who/imdertakes to
do the whole distributing job.
For the
pains
severe
com¬
petition there is, gq far as I know,
no sovereign remedy.
And, if our
economic history Reaches us any¬
thing, it certainly^sn't to be found
by
getting the ^.-government
to
step in and do
southing
But
in
live
we
there
about it.
to
be
coun¬
sam¬
-period
when
I believe, likely to find it in-
the
anaWze
as
cash
of
through
be
mar¬
Member firms have
to
classify such trans¬
cash
credit
will
number
if the
aceount has
balances
before
and
after the transaction.
"This
■
will
invaluable
be
the facts
on
of
in
ator
ease
to
the
Take
course,
presenting
margin vohu^e to the
ac¬
the
Public
pointed
out
Transaction
that
Studies
have been of great help in estab¬
lishing
overall Exchange policv.
March, he noted, the Stud¬
ies helped the Exchange to pre¬
And in
sent
the
to
which
was
Fulbright Committee,
this
cutting .opportunities
cost
on
in
field
which
^re
ough
starting
a
and
the
Exchange's
vital
trating
on
better
service
in¬
concen¬
rather
to
easy
obtain
long
out
you
preference
as you
money
on
with
you
matter
a
of
solid
some
turn some
can
to them.
over
to
comes
When
favoring
investment
business, these people either don't
have
the
with
you,
to
money
they
business
do
not
ested in solid investments.
When
or
good
will
cus¬
favoring
you
Help
to
other
butter
and
Income,
long-term
growth, with
money invested in well managed
and
strong businesses
all of
us
what keeps
are
eating regularly.
When you have an attractively
priced situation to offer some of
good friends and customers,
your
sell the qualitv and the yield
growth possibilities
for
well
as
and
the
as
quick
profit. If
customers want to take a "quick
in
once
be
aren't
while
a
that
sure
that's OK,
they know you
free lunch coun¬
running a
everyone—just
ter
for
the
people
You
who
are
few
a
among
of
your
with
to
by
or
new
liable
are
regarding
bread
in the securities business.
but
obtain
you
soft
are
opportunity
customers, and people who
try to reciprocate; either by
tomers
bit
a
one"
ycu
lucre,
grow
things that
can
make
helping
gotten
comes
you
along,
inter¬
are
attractively priced
along and you
pass the benefits
up
a
list of your
some
issue
think
up,
attractive
to become swayed
easy money—it's a very
weakness, potent, desire,
pleasant pastime. But, when
have tasted some of this ill
you
of attractively priced
offerings. Many Of these fair
favorite boarders.
their regular business.
With
Help Those Who
the
oldie
Can
where
I
used
of
up
of
elderly
a
young
man
Financial
has
joined
Shearson,
Chronicle)
Calif. —Janet
-
the.
Hammill
staff
&
of
Co.,
520
of
as
a
South Grand Avenue.
very
With Interstate Sees.
(Special to The
Financial
Chronicle)
homespun wisdom, dress them
in
her
behind
style,
own
of
name
the
monish
pick
am
to The
ANGELES,
Durst
well
and she would
the choicest bits
person
place the
for
LOS
first job. The old
pose
some
an
Shearson, Hammill
(Special
was
boarding house
as
my
to
educated
dig
remember
ran a
stayed
when I had
gal
I
cliche
stock
spinster who
and
of
some
us
ambitious young
of industry
GREENVILLE, S. C.
then
great author
a
gem—she used to ad¬
captains
H.
Lamar,
ciated
not
that
can
advocating
with
—
Howard
has become
asso¬
Securities
Interstate
Corporation of Charlotte, N. C.
Daniel Reeves Branch
a
someone
Jr.,
with
a
up
help you. I
an
entirely
.
SHERMAN
iel
&
Reeves
New
York
opened
Ventura
a
OAKS, Calif.—Dan¬
Co., member of the
Stock
branch
Exchange, have
office
Bou'evard
at
under
14221
the
management of Robert I. Higgins.
Politicians, Take Heed!
role
serving the public.
As in earlier Studies, Ihe latest
will analyze the volume of Ex¬
change business by source of pur¬
chases
come
and
volume
sales,
groups,
reasons
for
in¬
bv
buving
and
selling, sales broken down by
of
time
securities
held,
transactions within various price
ranges, cash and margin transac¬
length
tions.
and
orders.
made
geovraohical
All
origin
of
individual reports are
anonymously.
KANSAS CITY, Mo.—Robert F.
4627
now
with E.
R. Bell
Co.,
Wornall Road.
H. G. Brown Opens
OPELOUSAS, La. —Herbert G.
Brown is engaging in a securities
business from offices at 228 South
Main Street.
Nielsen Inv. Co.
TWIN
109 Main
a
FALLS,
Idaho —Harold
with offices at
Aveune, East, to conduct
securities
business.
ance
has been
generally agreed that too much reli¬
placed
on
the part which price
sup¬
solving
agriculture's long-range economic* problems!
ports and production controls can play in
"It
noted that producers of certain
was
ties—such
as
commodi¬
beef cattle, poultry,
bles—without
rather
fruits and vegeta¬
mandatory price supports have made
rapid adjustments in production and have
some
of the difficulties encountered by
avoided
have
(Special to The Financial Chronicle)
is
"The group
producers of supported commodities. Price supports
E. R. Bell Adds
vestment Company
your
by
is
weather friends will be only with
it
going
many
make
and
allotments
you as
are
deals, it is easy
by market moves'and by the price
of stocks. Everyone likes
is¬
new
there
people who will seek
try
there
Price
are
human
underwritings
in
possibilities
dhsing
and
Sell
markets
and documented account of
of
L. Nielsen has formed Nielsen In¬
of
When
s^udy of the
still plagued by \tfhat they regard
ruinous competition.
I also
have a strong suspicion that the
competition
Riders
companionable increase
a
public participation in the market
as
dividual
attractive
conditions favor
and
new
business.
Don't
stock market at that time, a thor¬
count
effectively capitalize
When
and
That's
you.
is
golden wagon and you'll
golden nail" (Shakes¬
peare). I am sure he never said
it just that way if at all, but the
idea was OK. If you are going
to do a favor for someone, do it
Funston
hotter than hoty and you
going to give somebne a break,
give it to someone that can help
to
always
or some new issue of stock
are
are
actions
Free
"Fonow
commented.
Mr.
Rison
the field -of book and
it
is
ston
competent oper¬
keeping
alone,
which
I
strongly
suspect^ constitutes a
very susbtantial ppt.of your costs.
it
future
his^eompetition by
outstripping it.
when
than
Federal Reserve Board," Mr. Fun¬
extraoqjinarv, and per¬
haps even unprecedented, oppor¬
for
clients,
good.
some
up
information,
along to
and
bonds,
that
give them the advantage
Another
innovation,
announced,
situation
a
In
posi¬
a
mercenary attitude in life.
I am
just saying that if you have some
cus¬
are
pouring out
having manufacturers in increasing volume can well be
sitting pretty wl^le. others are
wholesaling
in
any
me
With
the
From this
important
Funston
free
it
as
the
side.
no
W-Hne multitude
cars,
Another
actions
produce IV2
following a similar
product (femplexity. And
you,
as
trust
of
been asked
Motor
that it
is
own
and undertaking to do
wholesaling.
me
cai^^and have
Such
Ford
on
duction
their
over
possibl^to
would be
need
far
of
Company recently;*t61d
You who
So
been
many
gin accounts.
wholesaling.
manufacturers conclude they don't
take
throughout
expect
we
transactions handled
pain^i^ the neck to
a
own
com¬
The other is that you
been losing some relatively
petition.
have
has
and
banks
to
to
try to do their
tunities
them.
about
creasingly
worry
about?
Put
co-
representatives of
industry,
selected
pass
in
are
originally
likely to com¬
mand after the offering is com¬
pleted, put it where it will do you
new
able
Mr.
An
esiablished
trusts
different types of
tomers served by the banks.
done this year.
my
personal
try, he continued.
the
large and increasing volume
wholesaling to be
to
common
report the relative importance
electrical
least
with
companies
Jl-V*
At
the
as
and
banking
sent
What's Ahead (or Busiiess?
of
well
as
ooeration
-
very
funds,
them."
ouestionnaire, prepared in
A
9
page
pension
as
ex¬
good."
some
if you
of your friends
issue
ex¬
or
such
pling,
Continued
be
administered by
lend-
our
buving
trust
ing programs."
locality.
trust comoanies
disclosed.
accounts
the
keep
close wateh
important area—the
market—will
you
better price on an
a
in
and
old
an
can
the
be
profit-sharing plans and custodial
"I do suggest, however, that the
housing market will become in-
a
will
do
to
sues
tomers
World War II babes' begin marrying and entering the market,
locality
to
for-
This
selling stocks for
their different major types of cus¬
nufnber of years,
probably until theflfl60s, when the
tion
from
15.
continuing series of Pub¬
the stock
are
next few years, and?that we must
vary
intensive
extent banks and trust comoanies
in-
a
creasingly
has
believe it will be of great
significance to determine to what
in family incomes will help
to sustain an activeShome building
for
and
a
new
ston
crease
market
will
offered
plored in the next study, Mr. Fun¬
mar-
the
it
other words
new
"We
collapse in the
said.
next
role of banks and
"I don't think Wf3re headed for
he
8
fifth in
.jseJu
ture.
the
be
of
lic Transaction Studies.
rea-
no
or
Exchange,
to
that
President of the
Stock
used
pression that went, "If you've got
a
Santa Claus deal put it where
analysis of all transactions on the
Fxchange will cover trading on
in the present home building pic-
ket,"
York
announced
of
he emphasized that this competiwill
Santa Claus Deals
There
tion
Keith Funston,
a
weaker
rrade it clear thaHfe%aw
son
of
to do it.
New
it
check
Ac
a
has been
eral
can
houses
number of st&FG^fh'ey make
with loans from ^dit^instiutions
ahead of sales."
*y
1950,"
•
months,
in
year
only
said the League official.
The tightening of credit
cent
their
the
k said
r u n
new
"Th.s
sell
and
believe
close
abundance
Analyze
Trading Transactions
see
S t
S.ruuK
more
NYSE to
?
commitments we-'hiake to build-
housing starts earlier
predicted for 1955, the final total
mate
"I
ers,
By JOHN DUTTON
some
lofan—-associations
1
Valley, Idaho,
on June 4, Mr.
instead
400,000
u n
Securities Salesman's Corner
want
nor
said at the outset, you
crucially important job to
a
extraordinary
an
promptly.
at
belong
You could scarcely have
do.
ways
Mr.;' Strunk* Suggested
complete
ence
I
have
de-
r
the Northwest
and
gets me
business
your
face of growing competi-
the
tion,
bunumg
of
mand."
Confer-
of
conditions, in terms of
generally, in which to
work
out
the aches
and
pains
which have crept into your busi¬
ness.
And you are blessed with
market
Vy ^exerciseT incieasirfg^-care to
Addressing That
builders they-* finance
M
a-';,
Jz.
League.
Loan
neither
observation
upoii|" favorable
areas,
overcome
in
I
of
to be.
continues quite strong. In others,
it is considerably^ foore competi-
United
States Savings
details
business
"In
live,
has
the
where
get," he said, "that"housing is
local product and'klep^ndent
credit now underway probably will be reflected in a lower The local market."^'
gage
line
into
1
Tightening of home mortgage credit likely to cut year's output
abaut 100,000 units below earlier predictions, Says savings
<
39
overstimulated the
Production
modities.
for
the
production of
that
controls
implementation
of
a
are
some
com¬
necessary
high price support
policy tend to reduce efficiency and result in
higher-cost production. There is also a tendency for
the less desirable types and qualities to accumulate
in storage.
"In the
future, price supports should play a pro¬
gressively smaller role and net income a progres¬
sively greater role in directing agricultural pro¬
duction."
From the findings of the American
—
Assembly
American
A
on the perspectives
agriculture.
moderate
statement
be heard and heeded.
of
and
prospects of
truths which
should
H
•n
40
The Commercial and Financial Chronicle
(2672)
in much
Continued from first page
;
at
jsaf
dustries
or
guaranteeing
It
As We See
or
question is the degree of moral or social
employer. Mr. Reuther's letter just quoted seems to strive
to give the impression that the company and the union
has a duty to reduce, if
eliminate, the "hazards and hardships of lay-offs and
unemployment" among the labor force of the company.
Little by little companies have already assumed a very
large measure of financial responsibility in
witness unemployment insurance and many
into
this area, as
special con¬
union contracts.
great deal said of late months about
a
"guaranteed annual wage," but no one has taken the
trouble to define the term with any great degree of pre¬
the
gather from what has been said from
by union leaders that what is meant by this
least for the immediate present is an assurance of
One
cision.
may
time to time
term at
much
larger benefits from employers to men and women
temporarily laid off or permanently dropped from
either
payrolls without charges. There can be little doubt that
the ultimate aim of labor agitators is a flat guarantee of
wages
for, say a year, once an employee
forces on a permanent basis. This
has joined the
is a degree of
"security" which very, very few men in this real world
of ours have at the present time, but that fact does not
work
deter the leaders of the unions who are now
to take full
determined
advantage of the present temper of the public
and general prosperity which makes it financially
possible to do a great deal, for the time being at least,
which would be completely out of the question in less
mind
prosperous
responsibility of employers
and of their
course,
ability to perform in this matter? We may,
largely disregard the polemics of the union
negotiators and politicians. It is well known that certain
large and successful corporations have long ago instituted
something that may be called the guaranteed annual
wage, and have not suffered by doing so. Indeed some
of them
found it
have
instances
these
excellent business.
demands of the
the
security of employment the
ments to work to
see
year
In certain of
workers for greater
round set the manage¬
what could be done to stabilize their
operations throughout the year. In the more successful of
these, it so happened that their product was one which
the consumer used steadily and in about the same amounts
all through the year. The seasonality of raw material
availability apparently presented no insuperable problem.
The stability of operations proved highly efficient for the
company. We doubt if there are many who would not
agree that where similar results can be achieved—as¬
suming there are such cases where the effort has not been
made—it is the clear duty and the opportunity of man¬
agement to proceed with the matter not only for the sake
of employees but for their own business good.
Can
But
how
farmer
from
types of business
many
take
note
of
the
In
can
itself—whether the national
ment
government
will
its
or
guarantee
central
bank
repayment of
the
debt.
be used
seasons.
So
likewise with
situations, but it would be
bring these types of business under sufficient
stabilize operations fully throughout the
year.
other
of
seasonality which
spring from the habits of consumers. The automobile in¬
dustry, which for years has striven to stabilize its opera¬
throughout the
suffers from
year
types
where it appeared feasible to
consumer
a
as
to
reserve
sup-
port commercial credit guarantees
sales
of
capital goods
one
income-producin|[
terms longer than
on
such guarantees
year,
cover¬
ing the commercial credit risks of
insolvency and protracted default. *
the
Presumably,
able
time
in
commercial!
organization
guarantor
Although
11,
May
to
1955
the Export-Import Bank extended
69 credit lines totaling $117,770,up
000, I understand that few actual
transactions
have
been
Most exporters find it
obtain
this
extensive
dealers
on
While
the
Bank
worthiness
whom
the
loan
formation
is
of
course,
the credit
importer
the
to
actually made,
required
be
can
customers.
on
the
that
believe
information
must,
data
of
financed.
difficult to
other
and
have complete
I
equipment; agricul¬
tural and manufacturing machin¬
chinery
and
diate
build
to
credit
and
would
up
be '
suffi¬
a
guarantee
risks
in
com¬
interme¬
longrterm transactions.
to the committee the
According
be
adequate to set
in¬
I
simplified.
turn
ber
construction
or
purposes.
habits. People just buy cars
is
mind
my
bilit
risks
chase any stock in the AOFC.
does
the
insurer
to
down pay¬
by the importer, a 20% par¬
Bank, namely
ment
20%
a
ticipation by the exporter for his
and
account
own
60%
to
up
fi¬
ance
risks.
depreciation
at
in
available
made
through the revi¬
sion by the Federal Reserve
of Regulation
K, dealing with
financing
port
Act.
Board
under
The Act,
the
ex¬
Edge
introduced in 1919
by Senator Walter E. Edge of New
Jersey,
that
provided
member
banks of the Federal Reserve Sys¬
tem
could
set
corporations to
up
engage in foreign trade financing.
Under
no
the
original
Regulation K
than 10% of the corpora¬
more
tion's capital and surplus could be
loaned to
the
der
any
corporation
borrower.
one
amended
Un¬
Regulation K
organized .under
a
the
that
abroad
the
in
business
of
announced
of
will
be
debentures
and
notes
permitted
make
to
and
loans
to 10 years maturity. The total
liability of one borrower was in¬
up
creased
from
10%
20%.
to
This
limitation does not apply to liabili¬
ties secured by guarantees of any
by Chase
Bank
A
plan to assist American ex¬
porters of capital goods under the
provision of the Edge Act was
the Chase Manhat¬
new
announced by
tan Bank of the
in
the
Fall
company,
Finance
City of New York
last
A
year.
was
as
new
The American Overseas
Corp., capitalized
million,
1955,
of
an
$20
at
organized in April,
"Edge Act Corpora¬
which
and
will
the
term credit to
purpose
financing
enable
exporters
The
for
to
of
facilities
manufacturers
extend
longerforeign buyers.
corporation
will
finance
export sales of productive capital
goods, such
as
transportation
ma¬
chinery and equipment; mine and
well
machinery
machinery
and
and
equipment;
equipment
generating,
manufacturing
distributing
electric
etc.;
and
communications
energy,
for
and
be
to
facilities of the Ex¬
their
maintain
foreign
areas
in
find it expedient
may
organize export financing com¬
under the new provisions
of the Edge Act to meet the for¬
panies
eign
credit
competition
their
in
particular industries.
Another
ex¬
the
which
as a
are-
the
of
scope
where
or
com¬
exchange-
forward
currencies
of
market
This
Company.
for
outside
foreign
free-"
consequence-
the
giving
the problem
competition is
the International Trade Section of
the New York Board of Trade.
committee
established
was
A
early
The
published a
brochure entitled "Proposals for
Export Credit and Exchange
study the problem..
committee
period
long
free
of
cover
a.
market.
The Export-Import Bank is now
offering guarantees against politi¬
cal risks including nonconverti¬
bility for exports of capital goods..
the
However,
for
such
been
lim¬
demand
has
guarantees
so
far
I feel that commercial banks-
ited.
would
hesitate
without
to
extend
credit,,
under
recourse,
Some private finance
to
credit
the
short-term
discount
organization
attention
in 1954 to
devalua—,
or
such,
guarantees.
Trade
of
of
ex¬
facilities
the
to
gives
pany
Help From New York Board
special
depreciation
be¬
of
counter-party cannot be found in.
markets. Manufacturing groups
other
risk
by the Netherlands Credit
Insurance
cover
the
cover
To
insurance--
government
similar
serious-
a
countries.
organization will sup¬
port-Import Bank and will assist
productive
to
represents
also
must
exchange
of
plement the
goods
ma¬
-
devaluation which
shortly.
new
recently
without
at
recourse
companies
bills:
foreign
rate
a
com¬
mensurate with the risks involved..
cost of fi¬
uneconomic to>
both seller and the buyer and this:
type of financing is therefore lim¬
ited by competition in price.
In November, 1952, staff mem¬
nancing
higher
the
However,
becomes
bers of the Federal Reserve Bank,
of
New York
Guarantees, "which sug¬
gests the creation of one or more
of
nonbank
available
to
the
York
area.
about
10
firms
in
vide commercial
gaged
in the financing of foreign
Transfer
credit risk guar¬
It also suggests the
antees.
lishment
agency
of
or
a
of
political
cover
initial
$100,000,000, to
risks
including
bureau with
fund
capital
estab¬
special government
an
riation
of the
committee's
study
recently
re¬
leased
suggests
that
the
most
practical way to deal with the
problem would be to establish a
nonconvertibility,
and
the
like.
A
e x p ro p
summary
New
trade, with
around
conducted
a
survey
of
sources
smaller
credit
importers in
There
were-
New York
en¬
combined capital of
a
lending
firms
can normally be expanded about
threefold
through
bank
credit
the
million;
$15
potential
factoring
of such
available to them.
With
some
ad¬
ditional
capital supplied to foreign
traders by customers brokers and
freight forwarders, a total of over
$50 million was probably avail¬
able from nonbank lenders.
The Export-Import
system of government guarantees
against the dollar exchange trans¬
in
fer
Bank is not:
of
and
Such
of
related
in
guarantees,
the
make
the
committee, would
it possible
United
States
vately
owned
port
political
credit
to set
one
or
risks.
opinion
in
turn
in the
more
pri¬
up
operated ex¬
guarantor organiza¬
and
tions which would insure the com¬
credit
risks.
Subject
to
certain
would
exceptions,
generally
be
the
exporter
required
to
favor
of
short-term
financing
exports or the extension of
government credit for nonproduc¬
tive
goods.
Economist
Bank,
ments
Mr.
of
made
in
a
R. H. Rowntree,.
Export-Import
the
the following
speech
state¬
before the
for
Bankers'
Association
Trade
Virginia Beach, on May
11
mercial
gas,
machinery
equipment; construction
will
insur-
privately owned and operated ex¬
port credit organizations to pro¬
of the U. S. Government.
Manhattan
understand
proposed
the
AOFC
American exporters of
receiv¬
deposits, will have broader
powers to raise funds through the
the
of
I
of
details
or
ing
sale
liability.
full
activities
The
financing and guar¬
percentage of the
the
certain
a
importers
Edge Act, which does not engage
either within the United States
in
basis for*
a
against
many
ef fective
tion,
as
private
against commercial
or
present
risk
or
Convertibility
insuranceprotect the exporter or;
pate
antee
serve
coverage
tended
been
converti-
exchange transfer-,
financing
change
business.
int
not
The
financing will be similar
those
of
the
Export-Import
terms of
bank
Export-Import Bank will partici¬
credit facilities have
against
and
delays could
question
whether govern-:
to
Financing will be available for
periods from six months to five
years. Applicants for such financ¬
ing will not be required to pur¬
ing this type of credit to handle
new
serious
a
as
insurance
ment
nancing without recourse, by the
AOFC. It is contemplated that the
New
re¬
Insurance
There
personnel, experienced in extend¬
hope that the Bank has adequate
ex¬
Danger of Government
iron, steel, non-
for
products
transportation
loss
proper
the investment.
on
professional
ferrous metals and industrial rub¬
up
to pay
operating
and to provide a fair
reserves,
machine tools, scientific and
instruments for in¬
ery;
dustrial purposes;
supplying
do so,
also
penses
entity is not the national govern¬
in the nature
people and produce goods for that purpose which can
not feasibly be stored for
long periods of time. Diversifica¬
tion of products and other similar
steps Can sometimes
are
from
purely political char¬
a
acter. The government fund would
Financing Foreign Transactions
the
tions
hazards of
Credit Policies of American Banks
created
there
of
providing a fund which would
primarily to support guar¬
antees against losses arising
to enable it to also
tution
relieve the extremes of these
participation
be used
mercial
those industries which cater to certain seasonal needs of
Then
to
financial
government would be limited
reserve from its
coverage of
short-term commercial credit risks
It is the first private insti¬
control to
The
15
page
tion."
difficult to
these
cient
Continued
Corporation Formed
be
must
actual
the
They Be Stabilized?
seasonally stabilized? There are some which
obviously can not be. Attempts so to stabilize operations
which in their very nature are not stabilizable, would
entail great risks and great costs, probably causing numer¬
ous failures
among the higher-cost concerns in any given
industry. Much of the seasonal variation in industry goes
back to nature. The canning industry can not can vege¬
tables when there are none around to can. Naturally, the
case
export
an
on
agency
of the
all
involving
the
times.
What is the real limit of
of
guarantee
fees paid for the insurance would
What Is It?
There has been
for
credit risk.
largely at the cost, not of the company, but of the
general public. Here the real question has to do with the
moral responsibility of the consumer — and, of course,
whether he would recognize any such remote obligation
and act accordingly even if day dreamers said it rested
upon him.
believe that the company
siderations written
in
Thursday, June 9, 1955
.
shipments
to be
agree that this obligation is large and pervasive—almost
total. That is to say, the passages quoted seem to say that
not
offer
than
brings us to the question of moral responsibility.
Obviously no company has any moral responsibility to
undertake something it knows in advance is quite beyond
its reach. Even if ways and means were found in some
instances to bear the burden of carrying employees along
when no work is available for them, it would often have
the
responsibility of an employer for continuity of employ¬
ment of an employee once placed on the books of the
both
year
employment
year-round
steady,
of the
some seasons
automobile manufacturer go in
an
This
organized workers.
The central
can
circumstances?
lying latent Awaiting the pleasure
are
strategy of the
larger fihmbers at
others. How far
.
.
at
Foreign
of this year:
"There
that
the
should
at
are
those
who
contend
Export-Import
least
relieve
Bank
the
ex-
Volume 181
porter
and
of
Number 5436
the
political
for
cash
so-called
risks
.
The Commercial and Financial Chronicle
.
.
transfer
even
Continued
against documents.
More Commentaries
a course would be in
the best in¬
terests of United States trade. We
carefully stayed out of the
of short-term
credits
and
field
will
continue
change
in
wanted
and
''For
to
this
do
policy
against
risks
documents
really
.
sales
on
credit up to 180
.
for
or
cash
even
on
days would either
useful
no
.
much
purpose or,
to
the
in
pay
importing
dollars
Jo all whoj seek it.
even
true
more
at home.
This
abroad
If the
country
Bank
credit
or
...
be
may
than
it is
is unmind¬
ful of the effect of its credits
upon
the
importing
the
he will be unable to obtain
to do so."
means
I
believe that the expanded fa¬
cilities of the Export-Import
Bank,
of the "Edge
the increased powers
Act Corporations" and of the
new
private
corporation
help American exporters to meet
normal longer term
requirements
by foreign buyers. However, the
present
credit/rivalry
markets
is
not
sales
a
foreign
occasioned
normal trade needs.
cases
in
It
heavily concentrated at the lower
ceptionally
income
management.
their
nonfarm
The building materials industry,
for example, is highly seasonal.
warehouse these goods
Even
ticipation of the
in
such
as
very
are
we
times
prosperous
currently
experi¬
the
is
by
based
it
if
even
the
This
building products are ex¬
bulky in relation to
value, it is not possible to
during
pe¬
riods of decreased demand in an¬
production, and conse¬
quently the need for labor, fluc¬
encing,
of
has
in
demand
future
which
advance,
season,
possible to know
were
extent
building
been
never
duction but to climactic conditions
Granting
guaranteed
these conditions could
only result in unreasonably high
prices
and
probable
failure to
which affect building construction
many
not
due
the
to
industry's unwillingness to smooth
out the
peaks and valleys of pro¬
case.
wages under
activities.
building
of the character of the
materials
others
in
apply,
it
industry
similar
which
logical
seems
and
factors
that
the
the problem of steady
solution
to
income
for
United States Department of Com¬
merce—United States Department
of
Labor, clearly illustrates the
employment benefits supported by
seasonal
governmental taxation;
of
fluctuations
in
the
line
brought
asphalt roofing products, based
actual
on
bers
of
shipments by all
the industry.
mem¬
Since outdoor construction work
is impossible in many parts of the
country during the winter months,
should
workers
about
be
improved
by
Guaranteed
annual
un¬
more
moderate weather.
will
wages
American
the
"cold
terms which is
to
all
the
countries
It
leaders
to
with
will fall
sible
get
time
It is quite pos¬
proportion
of farm
families in this group will decline
still further
to say 76% — by
—
For
the
as
material
well
being
of
the
population
rises
throughout the country some
farmers, particularly those at the
lower income levels, will leave
the
farm
work
for
elsewhere.
main
earning
Those
likely
are
remunerative
more
to
who
find
re¬
their
materially
power
individ¬
burden.
al¬
though significant differences will
exist.
It
should
be
noted
this connection that these
distributions
take
into
in
income
considera¬
tion money income only, and that
the discrepancy between the in¬
distributions
come
of
farm
and
income might not be
If
I
about
the
of
nature of
three
units
in
the
will
period
Even
and
the
of
continue
guess
for
the
consumer
should
I
between
that
say
described
during
1960
the
1965.
and
by the latter year, however,
not likely that differences
in¬
facilities
although the differences that exist
form
a
These
only
of
use
credit
guarantee
of
subsidy
facilities
in
should
be
[
the
must
and
meantime
Demand for
EMERSON S. BOWERS
pursue
extend
only
when
to outbid
prudent
a
longer
merited,
It
terms
rather
than
Atlantic,
Pacific
policy
credit
seems
offers
not
competitor.
a
Treasurer,
exporters
our
to
but
me
one
the
that the problem
conclusion:
It
is
possible to have a guaranteed
wage
until there is as¬
annual
sured
Sfubnifz Greene Stock
Placed
Golkin
&
sales
j5rod u c t i o n f or
e m p
loyers.
Privately
Co., New
York
Assurance"" of
even
has sold privately 50,000 shares of
stock of Stubnitz Greene
spring
turing company.
Proceeds
used
to
spring
of
the
will
:
porate purposes. Mr. Stubnitz said
sales of all divisions currently are
running
at
a
rate
of
$25
million
annually.
ufacturing
lor
cushion
trucks,
seat
passenger
man¬
springs
cars,
buses since 1935. In 1954 the
acquired
pany
labor
Emerson S. Bowers
the
and
of
deterrent
division
is
broaden
The
use
of
its
mean
terials, such
and
steel, glass, paper
with a
protective
as
textiles,
liquid vinyl coating.
has
and
wide
This
commercial
holds
future
process
application
promise
for
diversifying and expanding Stub¬
nitz Greene
a
further
construction
in¬
see
no
way
to accomplish
annual
ings base.
earn¬
ture, labor,
i.
further payroll
cere
in
their
Tell
to take
A
self.
are
desire
No
but
responsible for him¬
of
spect
If
he
he will
himself
off
all with favors to none—which
time
demand
for
to
be
10
farm
products
increase
expected
least
will
during
the
Second, migration
years.
centers
continue
to
another
10
may
for
at
with
years
One
of the
the
have
and
the
the
others
20th
notable facts of the
past 10 years or
re¬
for
Century
of
late
is
In absolute
that
Three With Weston Co.
Allen,
Marc
Financial Chronicle)
added
to
Weston
the
&
Calif. —
M. Cohen
HILLS,
Archie
Sterling
staff
have
of
been
Daniel
D.
Co., 140 South Beverly
be
can
rise
to
hurst forecasts
25 million
products
will
decline.
change
in per
consumption of sugar and
syrup, coffee, tea and cocoa.
no
Mr. Dewhurst points out that
by
1960, the gap in demand between
need and
consumption in the case
milk, fruit and vegetables will
all
practical
purposes
be
of
for
the
The
other foods
same
point
can
several
For this
mentioned
tween
reach
Scherck, Richter
total
a
Bass
Scherck,
has
North
Mo.
joined
Richter
Fourth
the Midwest
—
the
Raymond
staff
Company,
Exchange.
expected
throughout
of
320
to
the
million.
177
of
can
we
expect
of
above.
1965.
In
a
be¬
view of
the population be¬
these
to
consumption
and
in
expect
not
however,
years,
it
that the total quant¬
me
ity of food consumed is likely to
rise in those years by another 5
or 6%.
Since
so
of
many
involve
sions,
which
state¬
my
numerical
expres¬
false
impression of precision, it would
probably be well to emphasize
the
fact
have
may
that
and
tended
to
They
proximations
during
than
the
Mr.
own,
of
what
is
as
ahead,
of
ap¬
possible
rather
what
wilt
occur.
Obviously, if
it will not
a
breaks out
war
be possible to increase
material
well
being to the
by the foregoing
since
necessitates
war
diversion of manpower,
raw ma¬
terials, and other factors of
duction
from
away
Should
economy.
bombed, the
vastation
which
indefinite
will
tionary
period,
Or,
may
if
for
defla¬
reason,
gain
the
fairly extended
a
production
will
ment
be
de¬
result
should
for
and
economy for
our
period.
forces
ascendency
pro¬
civilian
cities
our
unforeseen
some
the
destruction
seriously cripple
an
in¬
predictions
intended
are
years
I
Dewnot
are
precise
forecasts
as
actually
a
estimates
both
my
be
all.
at
convey
these
presented,
hurst's
decline
and
employ¬
instead
ris¬
of
ing.
Let
me
inclined
than
based
however, that I am
optimistic rather
be
future.
on
citizens
my
and
both
of
say,
to
pessimistic
nomic
about
act
our
eco¬
My optimism is
confidence that our
our
national
political
conscious of their
leaders
parties
are
responsibility te
prudently in the realm of pub¬
policy and to help preserve
lic
conditions
the
which
have
made
possible the present healthy state
of
our
economy.
With Dean Witter
In
an¬
(Special to The Financial Chronicle)
12 million dur¬
following five years, so
that our
population will be in
the neighborhood of 190 million
LOS ANGELES, Calif.—John S.
Prosser
has
staff
Dean
of
South
been
added
Witter
&
to
the
Co., 632.
Spring Street.
by 1965.
have
fact
for
mentioned
already
that
increase
an
farm
products
that
to
in
there
feed
to
the
quantity
units
have
spend
will
more
probably
ex¬
years.
be
more
result
The fact that
will
be
10
will
will
the
(Special to The Financial Chronicle)
demand
in
is
during the next
fact
With First Western
of Consumption
Pattern
I
consumed.
Street, members of
Stock
of
bit.
a
the
increase
Chronicle)
1960
tween
between 1950 and 1960.
judgment
mouths
LOUIS,
rate
population rise of
a
food
the growth
seems
I do
reason
population of this country will
The
ST.
•
down
period under discussion. Mr. Dew¬
pected
Drive.
to The Financial
the
numbers, however, the
population
continue
ing
The
the
slowing
other rise of 10 to
Century businessmen had.
to
has been
so
substantial growth in the
popula¬
tion.
There has been some evi¬
the 19th
K.
assume
First, it is likely that the
continue
the
for
they do is to continue to
They must
sults.
my
great nation.
defensive fights, as on GAW,
they can be assured of one defeat
re¬
businessmen to have the guts that
(Special
sin¬
expected to bring about these
suc¬
having tried.
Joins
after another.
is.
else
one
least
at
and
stave
grain
anticipates
capita
a
be
dence
accomplishing his goals
in life—good. If he fails—tough—
(Special
If all
of
in
ciple of laissez faire—a fair field
a
facts
us.
BEVERLY
really
to
of
extent -indicated
may
increase
is
example to the rest of the people.
They must reintroduce the prin¬
America
of
care
man
ceeds
taxation.
guaranteed annual wage pro¬
gram, they will have to set an
made
the
up an educational pro¬
attacking this whole phil¬
osophy of looking to someone else
any
to
them
Set
Adrian
businessmen
the individual
or even
e.,
Roselle Park, New Jersey
If
De¬
gram
se¬
unemploy¬
compensation, which would
es-
during
capita con¬
per
peas,
estimates,
citizen, and reaffirm the principle result that the financial status of
that the state's only function is those who remain on the farms
police protection of life and prop¬ will improve more rapidly than
would be the case
if the farm
erty.
population remained stationary or
Let businessmen stop treating
if it increased.
the people
as
though they are
It's
a
other
wage
wage
Spring's present
and
He
our
tendencies
next
O. B. JOIIANNSEN
chemical
for cOating a wide variety of ma¬
the
curity coverage;
seat
processes
in
is
than through additional social
ment
directing its efforts to
the
activities
guaranteed
spring and mechanical spring fa¬
of Reynolds Spring Com¬
pany as well as that company's
division.
smaller
Products
from farms to urban
dustry.
cilities
chemical
turnand
o v e r
change in lo¬
cation
com¬
cushion
The
made.
Security, state unemploy¬
schemes, state aid of any
description to business, agricul¬
con¬
struction.
be
God—
basic
Social
life.
is
in
America
Two
attack
security
and
keep de¬
it.
Denounce
Federal
children.
cluding
•
We
Stubnitz Greene has been
an¬
many lines of
business,
i n-
be
equip a new cushion seat
plant and for other cor¬
be
Farm
ment
production
impossible
by
.
sale
ate
i
nouncing
all-out
must
—
nounce
nual sales and
manufac¬
,
m
ac¬
Maurice Stubnitz, President of the
automotive
cushion
seat
spring
mechanical
ap-
p r o x
common
and
an
amount of
City,
Spring Corp., Adrian, Mich.,
cording to an announcement
or
An
present
Security
Co.
*]
j
offensive.
the
on
Gulf &
annual
»
will
DEPARTMENT OF COMMERCE
SOURCE
industries.
In
them
distribu¬
than they are at present.
used
extending nor¬
mal credit, essential to particular
income
money
between
export.
as a means of
is
between
their governments to
and
surance
as
credit
the
1966
His
that
fats and
oils, dry
nuts and soya prod¬
ucts, potatoes and sweet potatoes,
beans,
ments
distribu¬
tendencies
same
above
a
income
groups
1965,
great.
so
venture
money
same
for
to
were
tion of rural farm, rural nonfarm
and urban families will disappear,
discontinue
period
sumption
nonfarm families in terms of real
prevail
upon
same
1950.
probably be made for
Thus, these projections indicate
it
sound
in
indicate
en-. eliminated.
principles
in international trade.
They should
establish
the
be higher in
were
also
still
on
industrial
together
84%.
they
times
through taxes and not
burden
is
of
to
that the
below $5,000
fruits will
than
of
pri¬
a
incomes
mony
and
significant change in the
credit
becoming
concerned.
business
money
incomes of less
$5,000 in 1950. By 1960 Mr.
Dewhurst anticipates that the per¬
centage of rural farm families
than
dairy products, eggs, meat,
poultry, citrus fruits and
tomatoes, leafy green and yellow
vegetables, and other vegetables
pattern
conse¬
on
in
families
further
people,
effort to
an
war"
farm
received
tion
The time is ripe for
fish and
rural
nonfarm families will decline,
the
all
vate enterprise.
stop
tion of
Over
quently, the cost of financing them
should
fall
on
all
the
people
backing.
It is not
competition by private enterprise,
but rather competition
by foreign
with
rural
the
of
than
indicate that per capita
consump¬
either
urban families.
or
that the differences in the money
income distributions of farm and
benefit
government
governments
levels
hanced.
demand for building materials is ual companies which are not fi¬
necessarily concentrated in those nancially capable of carrying the
months of
88%
1965.
concerns.
In view
The
is in most
incentive
Economy
During the Next Ten Years
Because
will
finance
16
page
by demand factors
completely beyond the control of
accompanying chart, ap-.
country, we will
only pile up instalment credit un¬ pearing in the May, 1955 issue of
"Construction Review" (Volume 1,
til a point is reached where the
Number 5, page 45) issued
by the
buyer cannot pay his debts be¬
cause
from
The American
Guaranteed Annual Wage
dictated
are
tuates.
worse, would encourage the ex¬
tension of credit in excess of the
ability of
the
on
a
government to insure
against
serve
is
warranted.
our
until
so
Continued
page
41
The
Bank seriously questions that such
have
from first
sales
on
(2673)
in
of
First
of
1419
money
in
a
In this connection Mr. Dewhurst
estimates
X
Western
Securities, Inc.,
Broadway.
Joins Curran Co.
to
(Special to The Financial Chronicle)
SACRAMENTO, Calif.—Edward
W.
tion.
provided
Harriet
food
change in the pattern of consump¬
has
—
an
consumer
result
Calif.
OAKLAND,
Miller has been added to the staff
which
The
Boyer
is
now
Curran
Fourth
Avenue.
affiliated with.
Company, 4336
42
The Commercial and Financial Chronicle
(2674)
Imrn
rnn+lnnorl
^
jJ
y
tbe
'
11
nnnp
J
critical
demands
charge
The Economic Aspecls
W tlffl f Aj/1 llf
m
/111 yyll
illV
rect loans to business exporters
industry,
the funds available from
cannot oegin to equal
though
that
to
al-
source
those which
potential/y avail-
are
VWAU
.r-...
..
Latin American
these
want
heard
alive
to
tnis
always of
aged better and developed better
America.
by
your
by
way
your
all-powerful 1 Federal
an
give away.
a
jjke
we
to
basic
way.
j
to
sav
tonight that in
vou
mv
business
at
Government
Federal
to
assume
these
two
opposed
diametrically
philosophies,
find
we
face
i ®, ^
our
busi- sources'
nrivate
As *
fndustrv
and industry
after
case
(^r^t^, we con
both
home
at
both
ness
has
share of lesponsimimesyou wui
become
been
ivist
challenged
by collectIn fact, our s.ysfought by com-
concepts.
has
tem
been
.
,
recnonsibilities
the^jea^represeniauv^
policies
r„dnlto
cndp
SlllUllOiiS
v
"
Z, '
.,
.
Furthermore
to
if the military and political
come,
tensions
years
less
become
there
is
ev^wll^ hemnlLedPunon the
fundamental
iTo m^c issues
ec
Ixis
whkh
has callv
these
between
Ithat
cimnlv
our
adnnt
should
we
na«ivp
a
We
we
svstem
system,
own
own
two
Meninges
nnnnserl
hplipf
in
faced
tacea
are
are
inai
we
will have
Ynn
.
the
m
and
follow
you
tfctTte dedsFonf you^dopt! w^il
extent
will
vou
uciicvc
111.
has
a
dVade"sbYp
leaaersn p
the
of
ana
oi
respon-
field. Increasingly these pollan
1;
important impact on
^
tX'j-'. *>'
its
:■■■
It WR1 continue to lend
Those
assist-
ness
whd advocate this
persons
natural
;
re-
water resourced
You
of
recall
may
' th*t President^ise-hower.
even
* d0 not ?hare' however, the before his election,
forebodlngs
of
those
who
think, we shall soon reach
when
our
a point
wlir be un.
progress
stated his firm
desfrability of a part-
belief in the
nership approach to these
prob-
"
,
dermined bv a lack 0f sufficient
raw materials.
Interior
Tne
Department
will
not "give away" anything, but it
wm not be
party to closing the
a
do°r of opportunity to individual
and I°caI enterprise, and it will
not abandon the American way of
Iife which built this great nation
and inspired mighty dreams of
the future.
'.
A
...
n
e
p,
.
BalilftlOrG G2S & £!t
.
;
^
...
nff&nnP IfiH&ll
UllCIIIIg UUU6IOTI111611
1
Partnership with the states.
.' The Baltimore Gas & Electric
"-r'nership swith local public Co, is offering holders of its com-
These predictions have proven bodies.
mon stock of record June 7, 1955,
.
_
.
,
,
happy
,
ha„ deve)op new supplles confidence
Wlth.the same initiative and, in- satisfaction
which
has
always .char-
in
actenzed our free; competitive
sy?telTV.
'n «»« tremendous area,;Qf, the
0utetr Continental Shelf.,Q<t -the
in
u
,
>It—implies
one.
y,
genuity
Government's policies in the forcies bave
d
of
supply
*
a
will' play
government
But it must be a role of heipfuland cooperation and partnertheory have small conception of ship.
COsts
required or of the conseIt must never be a role of domiindustries to ini- querces upon our form of Govern- nation,
unnrecedented
an
X believe it is also important
that you manage your time and
work in a way that will enable
y°a
to keep informed of our
eign
Qn
have a
will "ave an unprec a
°PP°"uniiy_
mansmp
the
The
sfbility to undertake jobs that are
too complex or too expensive for
development
and instance after instance,
where .he free enterprise system
ease,
role to
ance.
>
in
stronger
a
The government has its
the responsibility for all programs
of natural resource development.
I have not the slightest doubt, individuals, or
The developments of the last few tiate. Once the process for eco- mrnt.
eign investment at every possiole weeks
have demonstrated that nomic
development
has
been
Because of the extreme finanopportunity. It is the surest way with real strength, and unity* of found, the Government retires and cial problem and because of the
to combat collectivism.
purpose in the free world, we can the free enterprise system takes great hazards to our
very svstem
There are many similar prob- begin to negotiate for true peace. over
cu^ costs and Speecj pro_ of government itself it is my feellems facing us in the world to- It will be a long road and perhaps duction.
"
ing that the only sound answer
day. I have only touched on very at times a discouraging one. cut
<pJ(le rapjd pace 0f our economic lies in increasecFstate and local cofew.
if wethave faithin our]principles expansion is imposing vast levies
operation in tbg
and tmth
better and
But it's the opinion it is not possible for the role.
do
^he Government
1
of course, is to facilftate and encourage private for-
further into
a
program
a
Perhaps this could be
The answer,
But if we examine
the real goal of
efforts: The building
common
ernment; that they could be man-
interior. We think it is the Amer-
Of the outcome in this struggle
able from private sources.
run
called
communist line, we must always jcan
fully
with
concerned
our
away"
those who
everything under
keep
businesses.
place it with theirs, witn tne constant twistings and turnings of the
remain
permanently
by the Gov-
Thursday, June 9, 1955
.
,'
lives
State
Government control so and they bureaucracy.of«This is Socialism. of play. In many ways, government
that
the heart assistance is needed.
..
objective.
"give
the
fostered
to
can
II HA
w...
should,.be
sources
owned and controlled
You've
•
aid
for
metals.
/'/■v...*.-
.
.
mutual
in
each
ml
the
but
of $30.25
a price
The
June 22, 1955, is being under-'
written by a group headed by The
joint enterprise. It represents First Boston Corp.. which will
the sP"it of complete purchase any unsubscribed shares,
cooperation and- helpfulness be- Concurrenftr. the company is oftweem the Federal Government, fering 70.000 additional snares to
a
l;go—ents.and employees.
in
the projects
Proceeds
rpsonr^
share.
per
subscription offer, which expires
^' we»
^raS^a^!e ° ou^Tn
new
other
of working together
effort, a mutual stake
I0r example, ouron, industFyviS ,private. citizenspushing ahead with the develop^. ..they undertake^
ment
of trreat.
only
not
„
the
from
financing will
stock
v
m
'
common
be
used for
U—
ir corporate
purposes
inproposed construction exhave
said
point
that
the
side
Thov
hutm
cannot
world,
the
our
staiea
objective
system
own
F
ctutori
repeaieaiy
long-term
destroy
stand-
in
side
ronnntpHiu
nave
their
"
by
their
ideologies
two
exist
iney
from
mai
and
"
to
is
re-
~
standards observed
by
from
atively
14
page
m
1
eral'
#<
#
Thia
do
Expanding Economy
when
visit
we
the national parks.
to
broaden
of
now
our
and
deepen
the
g
e
Los
away
sub
HmlpLmpIH
wlU
^
nnf
entin/i
10
mnnii
we
need
me.
for
re-
future
our
wilderness
is
treasure
a
Power Co. of Baltimore, supplies
To
me
this isVconvincing demIt
couraging locarBnterests
their proper
velopment.
of
pap in
we
to
en-
de-
program
believe
that
I
manY
..
equal
opportunities
to
enjoy
This
is
not
idealistic
an
phi-
iosophy without practical aspects.
In
aadition
beautv
visitors
is
Last
of
the
mil-
narks
another ripcade
that
this
to
grown
the life
48
vear
entered
estimated
will have
important
cents asset in
Nation.
Before the end
it
an
uDlift
national
our
become
and
the
.matchless
soiritual
afford
have
dollars
lion
the
they
parks
their
to
and
which
of
75
number
million
of
citizens.
our
°I Interior Department scientists coal
who
them.
mo
r»ark«s
-f
mn™
fJuciina
tho
+u
o
m.
\
produced
zirconium-
the
magic
You will hear
and oil shale.
Industry is now taking
metal
more commercial
-
,,
,
It is lightweight and corrosion
pyoof, and, }s an imP°rtant part
°* ^
shields Protecting the
(?rew from atomic radiahas many other uses too.
Every pound of zirconium in
Nautilus was produced by a
Eureau
Mines pilot plant at
^bany» ^re- *n.
until last
year, all the zirconium in the
country was produced by the
Bureau.
The need fpr ajl of
.
tho
til..'1
Until
thp
the
are
Bureau
Tntprinr
TenWirni
Mines
of
4ion which
for
our
fuels
havn
anH
resoureps
the
Th'eirs
sinews
is
conserving
ing
thn
new
the
what
rionarfmant
Qurtiow
Minerals Exnloratinn
thn
anct
year
ago
all
of
it
TWnnc*>
AHminictr*
millions of acres of land from the
desert and which has established
whole valleys of prosperous cities
and towns, of farms and homes
and ranches, and has been the
resnonsi^e for th» dr>v^i-
ooment of the economy of
a
large
of the United States.
in
of
commprrp
task
we
of
ties.
country will allow.
Government patents,
But there are many grave probdiscoveries are available lems facing us. When this Ad5 without cost to any citizens will- ministration came into office it
-ng to assume tbe risks involved found that trends, long in the
3 nGW ven^ure
"
heavy
p1ace zir" making and fostered by 20
resporferoiHty
in the nation's
march toward its economic goals.
It is you who quickly make known
all the new advances in macbinery, materials and forms of energy.
Through you is heralded
the new and improved products
and services thai can be produced
with them;
Responsibilities of the Federal
Produced ln a Bureau of
Let me say emphatically the
Mines laboratory plant.
Department expects to meet them
Both of these wonder metals all, and meet them as fully as
are n0w be'nS produced by pri- the
financial
condition
of
the
va^e. industry-
share
a
is
1
s*~are
a
April 1
dividend of 40
and
payable
July 1,
May 24,
1955 to holders of record
1955.
* '
i
tl8Ct NOilta wOliillliitGe
rpcnnnciv,iii+", these
f
I
n m
You
encourage, investment
in
Ia
n ■ r
n
M
r
-1.
.,
.
At the meeting of the Associa-
^10I\ of Cus|Pme/s,„^.r.0^erl
be
beld ^Tune
at White sRestau-
fant, New York City, a Nomin^tCommittee of nine wi.l be
chosen from the ioJowmg slate of
candidates:
Todd
G.
Alexander.,
AucMn-
closs, Parker & Redpath: Haze1 S.
Anderson, Gude, Winmill & Co.;
David Bell, Herzfield & Stern;
Hibbard
Stone &
E.
Broadfoot.
Havden,
Co.; John Carden, R. F.
thf. uturt c-i cur country. Invest- Lafferty & Co.; William Cogswell,
ment is the^gr&at engine of its Fahnestock & Co.; Alice Cunningexpansion.
ham, Hallgarten & Co.: Ecgar LhYours is a vitai rcle.
renthal, Ladenburg, Tha^arm &
I sometimes ieel that the many Co.;
Pen Goldman, Sartorius &
contributions oLour business lead- Co.; Michael J. Hays. Paine. Wetership to the nation's welfare and ber, Jackson & Curtis: Edward
deve^rmer.t are taken too much A. Horn, Fuhn, Lotb & Co.: Justin
for granted. It is especially true- Jacobs, Peter P. McDermott &
that we take the achievement of Co.; leo J. Larkin, C~rl M. Loeb,
business executives in advertising, Rhoades & Co.; Ralph Lencro,
sales and marketing too much for F-. F. Huttcn & Co.; Lorrin C.
grafted.
When
Mawsd^y, D'Assern & Co.; Edgar
we
exult in the protective
T. Mead, G. C. Haas & Co :
years might and th^Jnventive genius of man B. Montgomery, Jr.,
Ro^-
Harris,
have,
sources of
supply
known resources, and at the
time
a
of this year and a
cents
tising and marketing or&anizaiions
was
Minerals and Fuels
Within
about
35'cents
Jan.
we can look for- tonight are representative of the
in output as most active and important adver-
f
Protecting Our Resources in
of
on
ft.
are
Another vital resource agency in the world.
within Interior is the Bureau of
Upon you engaged in industrial
Reclamation which has redeemed advertising,.rvrests. an
especially
area
paid
ullSlOniGrS DT0KCJ5 10-^
svn-
our needs require.
agency
Dividends
were
here
of
the
Government
.^at10n. oped by modern technology and
The
Federal
Government
in
ranidlv hprnminu
business is seems destined to figure promi- connection with these great a<*enmaihr inrtnctrioc 0ne
enca s neritly in 0ur industrial progress, cies has many clear responsibiliju
ustnes.
fxrt
to face up
amounted to $110,254,000 and net
income amounted to $12,690,000.
is imperative.. You who
over
ward to an increase
SfihlS nnle iS?g American
Another new metal, titanium,
Hniitvc ^
7 1m+llll0ns of is potentially one of the most valnomln liWrpa
*r/Ufu #T +e-C0" uable structural materials develTn
us
surrounding area,
Total operating revenues for the
to the gigantic task that lies ahead
production
°L^r„pte!pLTqfirU approaeh thetic fuels and
y0T
electric and gas service to Balti-
play "12 months ended March 31, 1955,
resource
Through this
partnership
is
;
to
slightly
tory of the Commission.
wonder, for example, how
The Interior Department has America's respffifce program w;Tl
realize that the atomic sponsored much of the basic re- continue to .j$Q8&e forward at the
benefit of only a fortunate few. powered submarine Nautilus prob- search to make possible the pro- pace which is cfemanded.
Our national parks belong to all ?bl.y would
npt now be at sea duction of liquid fuels from our
\
of the people, and all are entitled Jf ^ bad not been for
work virtually unlimited supplies of
Task-trf-Advertising
The
that must not be hoarded for the
the company's system to
less than 1,000,000 kw.
The company, formerly Consolidated Gas Electric Light &
ceeding in its purpose:
an-
economic expansion.
economy.
seven years,
year the vol-
ume of such permits outstanding
was by far tbe greatest in the his-
liira
liquid fuels are
other potential source of the
sources
the*prior
At the end of.last
eninis sue- more and Z
onstration thatBtirtnership °J
the
Synthetic
base
tions during
that Fed-
arising'from
reach $6 billion
'
a
ourselves
ian^
already
areas
irFsttmated
revenue
■
THa ItUlv 111 fiAVAFIIlltAnf
1116 RaIa of WUV61111116111
In Our
limited
ionandit
i
mi
development
na^ r,been report to Congress states that dur-- penditures, which, may exceed
as a grouP» I have every con- J£ade possible by the opening pf^the last two years a replications $35,000,000 in 1955. The utility is
fidence that you will make a con- the area for drilling for gas and to the Federal Power Commission row completing construction of a
.tribution to good
government, oil under legislation vigorously for permits: to -survey potential new
electric
generating
plant
helping shape sound foreign pol- ^imported by this Administration, hydroelectric developments reore- with an initial capacity of 125.000
jcy) as we][ as achieving personal Revenues from the bonus bids sented a larger total of kilowatts kilowatts. This additional station
success in business and industry,
and first year rentals on the rel- than was covered by the apolica- will boost the peak capability of
:
Continued
-tp15
you
__
_
w
same
of the production
searcnir^g for newenable
methods quickly
materia^ to
new
us
get
its
as
business just as
private industry
plants
operating
to
can
meet
our
natural resources,
hydroelectric
/
We
were
particularly
omy
that
U11U
_
In the final.^uxalysis, indeed, all
power.
toid
x.
does not expand.
our
re-
of
the
AmeriCSTf^eople
must be
Sharer. Hemphill. Noyes 8c Co.;
George F. Worns, Shearson, Ham-
mill & Co.
Volume 181
Number 5436 i
Continued from page
The Commercial and
.
14
ployees, but to increase produc¬
tivity and. profits in every phase
of * business.
Profit
sharing
is
.
4>^
H
"
-
.
.
beingsare
enougn,
spirioialiy'
tendency to look for. someone else
to carry it out to blame for, our dWii misfortune
modus
economic- life,?
the
as
nob advanced
of
folly. None of us i& free of this
and
to try it
would eventually weakness;^ and
should find
it easy to understand in others,
bring-aaeiFogression in all things
—sp.riiual and. material. But ' to like;-''Carl," the farmer.
or
£
each
according to what he hon¬
estly ; can contribute ' is stilL a
pretty "high -qthical concept, and
-
V Now
the
poinbl-
;
trying to
am
make in all of this is not to
read
to
business, but to emwhich will and does work in;
phasize that there is good reason
the economic field.
;/-;Vi/i- ,: for many of th^'~Misconceptions
a
sermon
one
Reconciling
Business
With Moral
What
have
we
Practices.
Concepts
to
think, adequately
.
about business which exist—some
our
I
humility
not with
wie
that much of the criticism to ward- the
business
stems
from
religious, our
spiritual,
which
and
idealistic
must
we
concepts
approach
care¬
fully and understacdingly.
More
important
to
must do all
we
reconcile
business
we
practices
subject
understanding, and
indignation, as "George"
businessmansjferted
efforts
to
With
this
standing,
start
with
Most
of
free enterprise as
Too many
that
the
of
have forgotten
freedom
'"n
us
genesis
of
the western world is
like to
think
of
religious. We
freedom
our
ing guaranteed by laws.
is
Laws
nonsense.
and
about
But this
the
must
speed
businesses.
our
and
give
up
information
we
We
must
employees,
our
their
egpnomic concepts
stem from the place where they
work, and they ,^ass these concents
to
en
otherg,*;
-
_
In this job of
one
objective.
peopie: it
If
three
.^ooo
another.
We
here
or
is so for two
in principle for
it
go
300
people—or
have
people,'or
"WC
been
grossly and fantastically misunderstood. Profit sharing is es-
.are
spntially.; the (subject of debate-at
bargaining table
in ^ the
country. You'll remember "Jack"
said he was all for: the guaranteed
every
annual wage—"How else are you
going to make sure that workers
get their fair share of profits?"
The sharing of profits is at the
core of many of our great political
issues. It;represents a dispute that
could
threaten
—
of
life. Yet many of us in industry
are still trying, for the most part,
to
meet
this modern-day
challenge by clinging to antiquated
concepts
and
very
attitudes.
way
We
draw
interest.
through
self
It's
education
interest,
are
years.
freedom.
and in practice
mi
u m
governmental
to
come
There
of
sort
take
than
more
* restraints
we'va
granted
much
for
be
But to
freedom
laws
must
be,
they are, the mini¬
necessary to assure order.
enjoy the
abso¬
oh
are
vast
a
ed.
rerun
national
conscience, shaped by moral and
religious teachin s whicn impose
restraints
on
our
natuial
greed,
cruelty, and capacity for inj.stice.
Without these
restraints, freedom
a jungle
existence,
would become
and
we
inevitably
and
more
trols,
to
more
would
need
government
protect
con¬
ourselves
from
another—until freedom Lself
one
disappeared.
If
free enterprise is to survive
bring all the material bless¬
ings it promises, the funia.nen al
job is, in my opinion, to accelerate
and
the
trend
duct
it
of
on
recent
an
to
years
con¬
higher moral
even
and
ethical
plane.
There is no
denying the fact that the practices
of business a generation or two
ago were in a g eat many respe ts
in
direct
conllict
ethical
and
strides
still
is
religious
teachings.
Great
been made, but the
have
conflict
with
too
great in
some
areas', and our society will not in¬
definitely put up with this in¬
compatibility in two s ch impor¬
tant
of
areas
The
its
greatest
existence.
enemies
of
free
enterprise are not Communists,
but a minority of unscrupulous,
hard-boiled, or greedy business¬
men wherever they still exist.
is
It
not
good
current
ou^
enough
to
say
—
far
better
—
if
who
we
business want to continue
manage
leadership. The plain fact is
no longer
be leaders in a
strictly economic sphere alone.
our
we
can
talks
Nor
dowo^cC employees is plan
has high productivity and
answer^; my opinion, good profits and dividends. And
the
not
are
company- .magazines
propJgainda. I do not
say
printed
materials are not
good, because Sfrgreat many of
loaded
them
with
obviously rilre.
ceived,
But
they
If
straightforward %na
well
are
con-
they areg^ood supports,
mindsdtfae main thing
to
my
is to talk
employees
to
business face to T&ce,
about the
solicit their
questions and ansjwjer them frankly and sincerely, ^ t
In
my
staff
to
.for instance,
entire supervisory
compan#r
train
we
our
talk
plovees
fre<^¥Mo their
em-
about
th^r business. They
them ai,a group every
month, using inrpjrnation about
the business
th^-thcy get from
meet with
thmr
own
from
exoe&ence,
the
officers in meetings, and from me
in
monthlv
a
letter.
time
M^riagement News-
also
I
wipe employees a
letter.'^e have annual
quarterly
jobholder
as
meetings at
annual
our
the
same
stockholder
meeting. Throughput the year
undertake to
answer on
we
bulle-
our
tin boards any question submitted
to us, signed or
phase of tft§ business.
The
questions -wf- get, the better
opportunity we have to inform.
brief
no
for
tions. Beyond such things
Most
of
well-man»g°d
oomoanies-pT'e doing simi¬
jobs of comThunicating with
their emplo-ees^'Some of
them
lar
are
outstanding, rsf
But
more
and
need to follow surf
the
—
particularly
smaller, privately owned
which
panies
inforrratioo
a
companies
more
secret.
still
about the
And
should do
I
to
tend
com-
regard
business
Jbelieve
as
retailers
great deal more along
these
lines,
too, Few do
now.
"Sally" might „well have gotten
a
her misinformation on
there
are
manv
A
common
trait of most
people
contend, is
env''.
Not
necessarily malicious
envy, although some of it may be,
with
which
but
innocent
feeling that
to
as
see
we
much
this
in
must
envy
we
as
—
must
anyone
Jack's
simply the
be
else. I
pay
that is part of the price we
for having a free society that
seeks to
afforf
dividual
opportunity.
Still
another
the
maximum
natural
human nature in most of
the proprietor
chandise
cost
his
reeled
6^"%
about
him,
or
sT&f~
and
expenses
than 10
profits be-
couldn't
15%.
his
up
trick
us
in¬
of
is the
to
ation of defense work. We
for quite
area
a
ran
ads
period of time in the
newspapers,
telling
people
why the layoff was necessary,
saying frankly we were genuinely
sorry to be losing these good and
skilled
employees,
and
seeking
positions for them in other industries.
We
were
successful
finding
a
number
of
them. The public not only knew
rorrectlv what we were doing, but
ooportunities
for
they got the reason why, as well
as
the feeling, I hooe, that we
^V
I can't pass
it
be
more
»
the subject of gain¬
ing employee understanding withreference to-profit sharing. I
could. in fret, take all my time
today on that one subject alone,
my
way,
Real
opinion, there is no better
not only to educate
em-
Understanding Requires
A
assumed
out
In
honestly wanted to do something
mer¬
what
over
fust
some
^Profit Sharing
a
wa^,
opportunities
establishment, and told her for these people,
can
In
and
instance, we had a layoff
early this year due to the termin-
her mother worked in
entitled
attitude.
men,
For
retail
Feeling of Envy
pub-
the oublir nrooerly informed,
cause
The
as
lishing in the newspaper an "annual report to the community,"
in the town where you operate,
and sending informative material
deal frankly with individual situ-
principal of nersdhalizing the ingiven is much as pos-
curity means decadence; that op¬
we
business¬
prone
to iso¬
preserved,
incentive must be
though they are
even
abused; that the effect
sometimes
of chance
all of
on
lives
our
can
be
completely
the test of any
economic question is not
probably
never
eliminated; that
social
or
forth.! There are other important
freedoms in this country, as we
should know, and too many of us
set
in business have been too busy to
sional
people in our nation do
worry about these freedoms, how¬
ever,
and they find it hard to
understand our apparent lack of
Consequently
concern.
formation
often
our
not
may
fall
in¬
on
wherever it is threatened, and ex¬
it wherever we
We
can
in
can.
but whether it will work
and
back.
hs
I think you
will
with me
agree
it's quite a challenge. In its broad¬
est sense, it is the great
of the age in which we
challenge
live. Can
democracy survive?
In
this,
meeting
we
well
can
heed the words of Judge Learned
Hand, "The spirit of liberty is
spirit which is not too sure it is
right
which seeks to under¬
.
.
.
stand the minds of other men and
women
.
terests
.
which weighs their in¬
.
alongside its
bias."
If
words
as
we
without
own
remember those wise
we
try to build
better
a
wfirid in the vea^s ahead, we will
understanding for our busi¬
and companies, and we can
earn
nesses
best system
be confident that the
yet devised by
man
will survive
citi¬
community. Most of us
today, I am glad to say. But
few
of us who
aren't—the
few who fail to contribute their
Group Offers Signode
are
the
Sfeel Common Stock
in money and
the
now
us to progress, or whetner, if
tried now, its net effect will be to
through the ages.»
and should be good
our
it is right or wrong, in
theoretical or absolute sense,
any
our
many
leadership to
United Funds,
other voluntary
A
group
headed
jointly
by
White, Weld & Co., Lehman Bro¬
private welfare and civic organi¬ thers and McCormick & Co., yes¬
zations
are
doing all business
terday (June 8) offered publicly
and the enterprise system serious
160,000 shares of Signode Steel
ployees who* share in the profits harm.
'
Strapping Co. common stock (par
know what profits are, and how
We must take a much greater
value $1) at a price of $19.25 a
competition
operates
to
keep frteres* too, in supporting educa¬
share
■
prices at a reasonable level. And tion.
There
has
been
a
slow
Of the total 160,000 shares, 100,profit
sharing
can
be
a
well awakening in the last few years
000 are being issued and sold by
spring of good will. Consider, for to the fact that the schools and
the company and the remaining
example, what it has done for the colleges are vital to any under¬
public relations of such companies standing. We have realized that 60,000 shares bv selling stockhold¬
ers.
The company
will add its
as Sears
Roebuck, Procter and we have ignored for too long the
Gamble, and Eastman Kodak—let pressing need for better schools, proceeds initially to general funds
for use for additional plant facil¬
alone smaller companies like ours, for better salaries for teachers, for
ities
and
for
working
capital.
Beyond the education of our financial support for private col¬
Major capital expenditures con¬
own employees, there are many leges and universities, and for
templated for 1955 include the
other things all of us can do to more
cooperation and sharing of
promote understanding. They are information wilh the teachers and completion of a plant near Glenview, 111.; the initiation of a pro¬
too numerous to mention, but they educators.
All
of these
things
gram for improving and enlarging
cover, of course, the entire field
help tremendously in creating a
of public and community rela- friendly atmosphere in which we rolling mill, strap finishing and
ations.as they arise so as to keep
formalin
be
help
to
the
for
progress
assembly, civil rights, equality of
opportunity for minorities, and so
and
par-
our
methods ^exceDt
to counsel that hu-;
by its nature must
slow, that the solution of many
problems is the choice of the
lesser of evils; that too much se¬
man
whether
and economically, it can get the
response of its employees to the
sort of cost-cutting and hard work
needed to regain its position. Em-
clergymen, professional
hold
the
freedom
hospitals,
other community thought leaders,
ticular
for the poor;
(or free
enterprise) and to.ignore the other
freedoms—such as free speech, free
our
any
sible.
economic
share
more
I
late
if a profit sharing companv runs
into rough weather competitively
Unsigned, about from time to time to teachers,
day
principles and
methods
of
conducting business
are
on
as
good an ethical and
moral, plane
as
some
mythical
average
citizen's. They must be
better
that
have been too
zens
frozen
lute
done
protect
men
tend
manage-
"Who's
the freedom of the
individual?^ We might as well
a.gcT~coldly aloof education is a difficult thing inemployees for so many deed. Almost every company I
A simplified,annual report know which has a profit sharing
ments
they
should
most; to
without
so^many
question put to the
steelwqrker:
.
has
tor.explain that taking everything
portunity and
..
the
a
profit line — a battle linp__ of too friendly ears.
distinction between capital ; and
Freedom, after all, is indivisible,
labor, while giving lip sex vice to just as we've always been told.
tne idea of partnership,
And if we want to get credit for
The best way to really educate being one of its most important
employees on the fundamentals of protectors—as we are—we'd bet¬
business life is to create partici- ter
protect
it
whenever
and
from their
"They
^Recall
worry much about them. Religious
leaders, educators, and other im¬
and sometimes portant
and
influential
profes¬
has threatened—our
that
tions mereiy set up the fr rnework
for freedom.
For the most pare,
infringements
and national.
given, evidence
this- afternoon that profits admit the fact that
only
kepi
form
people.-
hporming, we are
beginning JgLJoreak the ice pating
be¬
cJmLcu-
better
humility and under-
we
were
wou.d destroy
well.
a
do,
pub-
successful;^y
more
broaden
we
gaifr
to.
enterprise will fall
ears,
and be ' far
friendlier
on
with these concepts. We dare not
seek to destroy tnem.
For if we
successful,
we
and
lie concept of
can
the faults
approach
with
more
some
naturev-If
whole
the
sit¬
faced, is
we are
failures,
own
of human
remember,
to meet
uation with which
-•
goes,
way beyond tjie boundaries of our- away
from
the so-called
rich
individual businesses. It .goes be- would provide little
per capita
ufacturer, doesn't see the necessity
■!; Sharing is a natural instinct-and of; doing. It concerns such seem¬
a
natural
relationship
between ingly peripheral things as our at¬
two human beings with a common titude on broad public issues, local
..
.
jobjof- education, therefore,
:^Fpwiug- i;apMy,. .aucl more,and.;yond taking an interest in governmore
efrmp^mies are finding ft ef- ment—which ''George,'.' our man-,
fpctive in
human
43
(2675)
Ftsgggicial Chronicle
Friendly Climate
As I have said, real understand¬
ing is difficult to achieve unless
there is a friendly climate. What
makes
this climate is no one
thing, but a series of
very many things. If the climate is
critical
and
unfriendly
misinformation will be accepted and
passed along—usually magnified.
up
particular
If the climate is friendly, it will
be challenged and verified. Our
—
related facilities estimated
hope to gain the understand¬
need.
There's a Biblical proverb you
can
ing
we
remember that says: "Wis¬
principal thing; there¬
may
tion
public during
the coming
years.
And it is our solemn re¬
sponsibility to help them get it.
can
But
these
words
were
meant
for
We've got to get more
wisdom and understanding before
we can
expect it from others. It
too.
us,
just
realistic to expect the
fellow
to
bend
halfway
isn't
other
toward
we
understanding
us,
unless
have shown ourselves to be re¬
ceptive to him.
We
need this friendly,
receptive atmosphere because,
compared to the demagogue who
heads to destroy our freedom, our
vitally
Herculean one. Hu¬
all
he has to do in many cases is to
job is truly
man
nature
a
of
a
Signode products in Canmanufacture
related
tribute
dom is the
fore, get wisdom; and with all thy
getting, get understanding"
This is our hope for the Ameri¬
to cost
and the acquisi¬
controlling interest in
the Canadian companies that dis¬
about $2,200,000;
a
d
and
a
items.
principal busi¬
purchase
distribution of steel strapping,
The
ness
and
company's
is the manufacture,
metal seals and the tools required
for their
ucts
are
application. These prod¬
extensively to bind
used
reinforce shipping
and
and
skids,
.bales,
units such
crates, cartons
to hold in place
carload shipments or cargo aboard
boxes,
as
>
and
ship.
three
the
For
months
31, 1955, the
March
ended
company
re¬
sales and other operating
revenues
at $8,977,851 and earn¬
ported
ings of $706,818, equal to 62 cents
share. For the year 1954, sales
a
$29,051,757 and earnings
$2,261,292, or $1.98 a share.
equaled
were
being what it is,
Joins First Sees. Co.
platform, distort a few
point to apparent in¬
justices, and convince the crowd
that all they have to do is to fight
oppressive management and gain
the right to dip into a barrel of
cago,
inexhaustible wealth.
members
by comparison, are faced
with the job of teaching much of
the public a course in philosophy,
and in many cases to tell people
what they don't want to hear; to
Exchange.
stand
on
a
(Special to The Financial Chkonicle)
statistics,
We,
can't get more
out of the barrel than is put in
by production, whether it be from
government or private industry;
point out that
you
CHICAGO, 111.—Leslie S. Southcomb has
First
become associated
with
Securities Company of Chi¬
134
South La
of
the
Salle Street,
Midwest
Stock
Hornblower & Weeks Adds
(Specia1 to The Financial Chronicle)
ROCKFORD, 111.—Richard L.
Rutledge
has
become
affilated
Weeks, Rock-
with Hornblower &
fnrrt
Trust
Building.
\
•
44
The Commercial and Financial Chronicle'.
(2676)
latest week
Business Activity
week
Latest
IRON
AND
INSTITUTE:
STEEL
steel operations (percent of capacity)....
Equivalent to—
Steel ingots and castings (net tons)
AMERICAN
PETROLEUM
oil
Crude
and
condensate
oil
Jun
(bbls.
average
12
oil
(bbls.)
Residual
fuel
1,746,000
6,676,350
6,655,450,
6,431,350
6,835,950
117,483,000
7,329,000
7,159,000
7,020,000
24,669,000
24,552,000
24,099,000
22,914,000
2,196,000
2,165,000
2,126,000
2,336,000
May 27
10,738,000
10,552,000
10,521,000
9,459,000
May 27
_
at
May 27
May 27
8,084,000
8,070,000
8,293,000
7,796,000
169,373,000
170.677,000
176,75.9,000
25,220,000
24,144,000
21,012,000
76,109,000
67,635,000
71,224,000
44,156,000
43,386,000
43,887,000
46,433,000
freight loaded
U.
S.
Private
(number
May 28
790,176
of cars) —May 28
(no,
774,419
.
730,137
689,292
669,287
669,576
of cars)
CONSTRUCTION
634,544
592,719
June
2
$324,143,000
$402,699,000
$389,375,000
Juno
construction
2
216,474,000
289,598,000
247,070,000
June
2
107,669,000
113,101,000
142.305,000
Bituminous
(U.
coal
U.
S.
Private
S.
BUREAU
and
lignite
Pennsylvania anthracite
DEPARTMENT STORE
2
2
79,762,000
83,802,000
106/853,000
66,724,000
27,907,000
29,299,000
3^,452,000
OF
Electric
output
FAILURES
OF
Month
—
May 28
9,330,000
9,250,000
8,600,000
(in
GOO
511,000
489,000
396,000
569,000
May 28
114
115
120
100
in
steel
(per
Pig iron
(per
gross
942,244
617,155
514,693
424,323
489,229
410,363
154,621
127,926
104,335
$30,655
$29,948
$28,095
23,513
22,974
21,426
11,053
9,942
5,492
5,479
5,413
1,534
————
831.892
578.944
.___
1,530
1,617
4,454
OUTSTANDING—BOARD
OF
THE
FEDERAL
SYSTEM—REVISED
millions
of
as
April
RE¬
SERIES—Esti¬
intermediate
and
term
credit
30:
credit
consumer
Other
credit
goods
consumer
Repair
and
^
modernization
loans
5,005
4,912
7,142
6,974
Single payment loans
Charge accounts
2,496
2,481
2,131
2,859
2,735
2,723
1,737
1,758
1,765
Personal
J00
CONSUMER
Jun
INDUSTRIAL)
—
4
9,537,000
9,976,000
9,586,000
All
2
203
204
237
218
of
INDEX
April:
and
bakery
$56.59
$56.59
$56.59
$56.59
Rent
May 31
$34.00
$34.00
$35.00
$28.58
Gas
4.797c
4.797c
4.634c
123..7
121.1
110.5
105.4
112.0
110.0
111.9
113,6
119.5
;
102.3
109.4
.
103.0
117.5
:—
^
Housing
119.6
113.5
.
104.6
129.9
electricity
130,0
128.2
110.3
_•
and
111.3
104.6
poultry and fish—
products
Fruits
and
vegetables
Other foods at home
4.797c
114.6
112.4
109.7
123.9
products
114.3
110.8
110.1
;
home
Dairy
lb.)
_•».
;
May 31
ton)____________—______——May 31
114.2
111.2
:
at
Meats,
(per gross ton)
6,669
1947-19=100-
—
_.
Cereals
&
-
credit
items
8,746,000
—Jun
DUN
-
—
credit
PRICE
Food
kwh.)
loans
Noninstalment
COMPOSITE PRICES:
Finished
$1,456,942 ;
1,147,581
—
municipal—
——__L_.
short
Month
RESERVE
INDEX—FEDERAL
AND
$1,449,047
of
7,279:000
May 28
=
$1,274,500
$261,000
EN¬
—
11,482
and
GOVERNORS
Total
INSTITUTE:
(COMMERCIAL
Scrap steel
s
Service
BRADSTREET, INC.—
IRON AGE
(000
$1,726,525
NEWS-RECORD
Federal
Food
ELECTRIC
March
construction
CONSUMER CREDIT
MINES):
(tons).
AVERAGE
Ago
OF
construction
State
30,286,000
(tons)
SALES
SYSTEM—1947-4!)
EDISON
of
DEPT.
CONSTRUCTION
construction
Public
97,010,000
June
—June
.—
-
1
OUTPUT
Month
110.3
107.6
PRICES
(E.
123.9
Housefurnishings
M. J.
1
35.725c
35.825c
36.175c
29.675c
Jun
1
91.625c
91.750c
91.250c
93.750c
Jun
(New
1
Jun
refiner j
tin
1
15.000c
15.000c
35.700c
35.700c
35.700C
29.700c
(St.
Louis)
at.
Zinc
15.000c
14.000c
Jun
1
14.800c
14.800c
14.800c
13.800c
Jun
Lead
1
12.000c
12.000c
12.000c
10.500c
MOODY'S BOND PRICES DAILY AVERAGES:
U. S.
104.6
106.1
118.1
117.9
116.9
103.1
103.2
104.1
105.5
105.6
107.1
97.1
97.4
98.4
116.9
116.7
116.1
90.2
90.4
125.3
127.3
Medical
QUOTATIONS):
Jun
Export
104.5
Household
127.3
127.0
fuels
Solid
&
Electrolytic copper—
Straits
125.7
126.2
Transportation
METAL
operation
_'.
Men's
and
Women's
boys'
and
Other
apparel
.96.74
96.36
99.13
7
108.88
108.88
109.06
110.15
Reading
7
112.37
112.37
112.56
114.85
Other
June
7
110.34
110.34
110.34
7
109.06
108.88
109.42
109.97
June
7
104.14
104.14
104.31
104.14
UCTS—DEPT.
June
June
7
107.44
107.27
107.44
108.70
June
June
7
109.42
109.42
109.79
.June
June
7
109.97
109.97
110.15
111.25
June
7
2.74
2.74
2.77
2.56
June
7
3.23
3.23
3.22
3.16
June
7
3.04
3.04
3.03
2.91
June
7
3.15
3.15
3.15
3.06
_June
7
3.22
3.23
3.20
3.17
.June
7
3.50
3.50
3.49
June
Public
7
3.31
3.32
3.31
.June
7
3.20
3.20
June
7
3.17
3.17
Group
Utilities
Industrials
MOODY'S
U. S,
/
_
Group
Group-..
BOND
DAILY
corporate
_
Aaa
;
Utilities
Public
Industrials
MOODY'S
Group—
Group
COMMODITY
NATIONAL
INDEX
PAPERBOARD
Orders received
.June
of
Unfilled
..
■
i
'■
3.18
3.15
3.16
..
3.10
397.4
399.9
439.0
269,132
236,922
290,223
239,769
May 28
at
end
of
274,342
279,415
266,188
241,709
98
97
96
91
May 28
520,458
578,264
507,635
364,150
period
OIL, PAINT AND DRUG REPORTER PRICE INDEX3
106.71
106.74
106.82
107.24
Number of
SECURITIES
—
sales
by
dealers
EXCHANGE
(customers'
Number of
II~May
orders—Customers' total sales
short
Customers*
May 14
other sales
II May
sales
by
6,232
1,005,245
1,399,849
7,046
993,976
6,213
8,070
990,199
1,393,636
985,906
$50,704,445
$65,689,065
May 14
272,030
245,430
362,770
320,340
272,030
2~45~430
362,110
3~20~340
sales
May 14
by
May 14
SALES
ROUND-LOT
OF
ON
THE
STOCK
MEMBERS
N.
Y.
399,420
447,300
447,310
319,370
(SHARES):
479,170
508,460
_May 14
11,701,210
11,845,600
14,502,430
9,978,370
May 14
specialists
FOR
in
12,180,380
12,354,060
15,039,980
10,332,800
ACCOUNT
OF
537,550
354,430
MEM¬
stocks
in
which
■r
285,220
224,130
1,327,750
1,469,780
934,070
1,599,170
1,755,000
1,158,200
245,320
263,730
331,960
312,200
22,100
36,300
14,000
14.400
247,930
302,820
337,900
283,330
249,610
178,107,000
138,285,000
176,259,000
273,098
278,909
177,739
218,928
219,851
197,083
209,425
56,039
67.431
112,223
70,582
April
(tons)
Shipped
98,197
106,964
81,977
30
(tons)
(tons)
99,680
89,323
285,687
317,298
226,187
Hulls-
Stocks
(tons)
Produced
April
30
(tons)
Linters
;
(running bales)—
April
30
i
1
101,903
139,583
149,749
133,514
179,044
150,138
442
449
983
Produced
173
457
394
Shipped
185
626
325
3,983
*4,336
7,717
Stocks
(1,000-lb.
April
bales)—
30
(1,000 pounds)—
Grabbots, etc.
Motes,
Stocks
April
30
988
*1,315
1,341
30——
>,280,000
),160,000
19,365,000
5,854,000
11,485,000
450.1
459.4
4.05
2,440
22,390,000
30—____
'
*1,351
4.03
Produced
COTTON SPINNING
(DEPT.
3,474
place
in
Spinning spindles
active
COMMERCE):
OF
April
on
April
on
spindle hours (000's omitted)
Active
spindle
hours
AVERAGE
WEIGHTED
Utilities
—
U.
S.
DEPT.
PERSONAL INCOME
(DEPARTMENT
March
of
figure.
farm and foods
OF
UNITED
4.12
4.88
$292.4
$285.0
*199.8
194.5
87.4
*85.9
84.2
*53.4
52.0
*26.3
25.0
34.2
33.3
STATES
COMMERCE)—Month
(in billions):
Total personal income
salary,
Commodity
total—
industries
Distributing
Service
receipts,
producing industries—'—;
industries
-
J
297,730
358,742
73,490
103,100
122,500
40,390
600,423
547,036
656,190
384,047
Proprietors
673,913
650,196
778,690
424,437
Personal interest income and
2,216,782
2,284,956
2,703,130
1,771,342
345,200
410,820
421,720
278,920
Government
employee
contributions
for
social
in¬
5.2
surance
Other
labor
2,063,573
2,177,736
2,463,870
1,601,447
2,408,773
2,588,556
2,885,590
1,880,367
Total
and rental income
dividends
OF
I
"
~
I May
~ I
I II
110.2
*110.2
110.4
31
91.0
91.8
92.5
97.8
103.5
*103.1
108.3
106.2
May 31
85.3
'84.2
85.8
97.7
May 31
115.6
*115.6
115.7
114.4
capacity of
125,828,310
23.9
16.8
—
$1,341,000
$1,426,000
1,005.000
$277,515,208
$276,68G,284
5,879,608
6,401,175
5,486,781
$271,635,600
EXPORTS
CENSUS
15.8
268.8
857,000
OF
*16 5
*276.2
$270,285,109
$268,068,453
IMPORTS
AND
Month
of
April
omitted):
—
r
957,000
110.7
May 31
annual
*24.8
$1,226,000
STATES
BUREAU
(000's
6.6
48.9
278.5
nonagricultural income
UNITED
4.7
5.1
6.6
*49.8
24.8
—
6.6
49.7
income
Total transfer payments
'Includes 790.000 barrels of foreign crude runs.
SBased on new
of Jan. 1, 1955, as against Jan. 1, 1954 basis of
124.330,410 tons.
+Number of orders not reported since introduction of
Mon.hiy Investment Plan.
2.94
26.4
IN THE
Imports
I
other than
2.50
201.5
—
4.62
53.5
.__
■___
4.86
3.94
34.2
(10)
(200)
556,210
May 31
foods:
6.27
4.44
$294.2
(15)
Exports
•
4.81
4.65
2.49
(24)—
4.69
4.14
& Tel.)
4.55
4.06
(not incl. Amer. Tel.
351,900
(1947-49= 100):
products
May:
Of
———_—
505,656
May 14
SERIES
OF
(125)
339,190
May 14
NEW
-
place
YIELD
(25)
493,112
of members—
sales
PRICES,
in
STOCKS—Month
COMMON
May 14
account
April 30
—____—
Railroads
Banks
spindle
per
May 14
for
commodities
Revised
Stocks
May 14
tommoanies
161,402.000
1,302,000
(pounds)
May 14
Meats
An
1,147,144,000
Meal—
270,030
Commodity Group—
„
and
Less
purchases
Processed
568,369,000
M10.000
(pounds 1
Consumption
May 14
round-lot transactions
Farm
191,274,000
1,020,000
30
May 14
floor-
Total sales
All
Produced
April
May 14
initiated off the
8hort sales
—
271,420
1,215,220
1,464,830
May 14
Total sales
LABOR
1,100,400
May 14
sales
Other
161,955,000
159,930
(pounds)
Wage and
purchases
WHOLESALE
1,814.960
floor-
sales
transactions
Total
1,515,570
May 14
the
on
Short sales
Total
1,478,350
May 14
sales
Other
Stocks
Average
May 14
Short sales
Total
129,705,000
150.978.000
171,702,000
Oil—
Refined
Insurance
May 14
sales
sales
transactions initiated
Total purchases
Other
125,738,000
i,217,000
registered—
May 14
Other
Total
1,593,000
30
(pounds)
Industrials
May 14
TRANSACTIONS
Other
890,521
1,834,000
April
(pounds)
Shipped
e
purchases
Other
469,833
1,010,361
12,780
154,119
(pounds)
Produced
100
sales—
Short sales
Total
Stocks
MOODY'S
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Total
28,265
438,002
705,100
(tons)
April 30
April
STOCK
TRANSACTIONS
Total sales
of
36,302
318,041
mills
(tons)
Oil—
Crude
Active
sales
Transactions
at
(tons)
Stocks
Spinning spindles
dealers—
STOCK
AND
round-lot
Received
$44,272,117
Short sales
ROUND-LOT
14
980,675
May 14
ACCOUNT
Other
993,442
$45,767,558
974,443
sales
TOTAL ROUND-LOT
Total
1,362,579
$71,621,860
$50,053,594
Short sales
Round-lot purchases
Number of shares
EXCHANGE
of
dealers—
Number of shares—Total
FOR
1,198,335
$61,643,937
May 14
sales
Other
1,121,250
$58,803,949
May 14
Dollar value
Round-lot
14
(customers' sales)—
106.5
120.2
PROD¬
COMMERCE—Month
OF
Produced
May 14
Customers'
SEED
COTTON
AND
106.6
119.8
Seed—
Cotton
Hull Fiber
value
Dollar
—_
services
Shipped
COMMISSION:
purchases)—t
shares
Odd-lot purchases by dealers
SEED
Stocks
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N.
Y.
STOCK
EXCHANGE
112.9
113.5
106.6
119.8
recreation
and
Shipped (tons)
.Jun
Odd-lot
COTTON
113.7
care
and
goods
Cake
.May 28
(tons)
Personal
Produced
activity
orders
400.5
3.24
.May 28
(tons)
Percentage
7
3.50
•
ASSOCIATION:
(tons)
Production
110.34
,
AVERAGES:
Government Bonds--.,—
Average
96.70
Crushed
_
YIELD
124.9
April:
„
.
Railroad
90.4
129.1
H'tl
112.00
June
;
.
care
7
A
Baa
girls'
Footwear
June
.
Aa
oil
Apparel
June
June
:
Aaa
fuel
and
.June
___—June
Government Bonds
Average corporate.
>
(000's omitted)
May
107,377,000
.
L
municipal—
of that date£
Previous
$1,353,200
GINEERING
Total
$204,387,000
—
Federal
COAL
S.
Automobile
construction—
State and
U.
—
Month
—
CIVIL ENGINEERING
Instalment
ENGINEERING
—
construction
Public
COMMERCE
172,855,000
NEWS-RECORD:
Total
CORPORATIONS
S.
mated
freight received from connections
are as
CASH DIVIDENDS—PUBLICLY REPORTFJ) BY
SERVE
Re/enue
for the
23,416,000-
80,204,000
RAILROADS:
Revenue
ENGINEERING
2,345,000
*2,312,000
May 27
_/
at
ASSOCIATION OF AMERICAN
CIVIL
73.2
May 27
__
(bbls.)
oil
Ago
97,2
May 27
(bbls.)
(bbls.)
of quotations,
cases
Month
Ago
*95.8
§2,334,000
in
or,
1955
either for the
are
Latest
of
May 27
output (bbls.)
fuel
that date,
U.
Stocks at refineries, bulk terminals, in transit, in
pipe lines—
Finished and unfinished gasoline (bbls.) at
May 27
Kerosene (bbls.) at
May 27
Distillate
on
Year
Week
§96.7
Month
omitted)
output—daily
Kerosene output (bbls.)
Distillate fuel oil output
fuel
12
month ended
or
Dates shown in first column
month available.
INSTITUTE:
42 gallons each)
Crude runs to stills—daily average
Gasoline output (bbls.)
Residual
—Jun
or
Previous
Week
Indicated
.
Thursday, June 9,
.
The following statistical tabulations cover production and other figures
Indications of Current
AMERICAN
.
tons
UNITED
STATES
GROSS
DEBT
DIRECT
AND
GUARANTEED—(000's omitted):
As
of
May
General
Net
31_
fund
balances
debt
as
Computed
r.nnual rate
'Estimated.
-
2.348'U
2.331 (t
$273,555,234
2.347%
Volume 181
Number 5436
.
.
.
The Commercial and Financial Chronicle
(2677)
Continued from page 6
Wholesale Commodity Price Index Declined to Year's
Nafional Telefilm
Lowest Level the Past Week
The State of Trade and
"Steel" estimates May
make
total
a
of
Continuing its mild downward movement, the daily wholesale
commodity price index, compiled by Dun & Bradstreet, Inc.,
Industry
production at 10,300,000 tons.
tons for the first five
touched the
That would
months.
A
47,400,000
.
started
slightly reduced rate of steelmaking.
In the week ended June 5, operations were at 96.5% of capaeity,
compared with the preceding week's 97%. The decline c?me from
the Memorial Day holiday and a decision by some millst to lower
operations
•
with
from
105
106%
equipment. -+ ,"\/ + ;
-vV
capacity
of
YY
to
100
Y+y
v
to
preserve
,\+-■
wondering how long steel demand and
production will remain high. One thing is pretty sure: Consump¬
Everyone has
tion
been
decline during June, July and August — the months
metalworking plants take summer vacations. Whether de¬
drops depends on how well business holds up, it adds.
mand
on
the like date
on
during the past week.
May 31, comparing with 271.74
a
on
country sales .small, cash
the
futures
market
May
although prices
receipts light and
prices have held fairly firm, but
support with both old and new crop
deliveries selling
far bedow the support price. Planting of corn
completed with good rains in the Mid¬
west getting the crop off to a
good start. Rye displayed strength
at times under buying stimulated by unfavorable
crop news and
the prospect that imports would continue to be limited after
July 1.
said to be just about
was
After
wheat
showing
prices
rainfall
strength
some
drifted
lower
in
the
influenced
fore
by
of the
part
reports
of
Trading in grain and soybean futures
In the East, a large supplier of pig iron to the foundries reveals
its
very
good business is now, depends on where you are. De¬
cold-rolled carbon steel sheets has filled order books
,
for
several months
for
iron
in May
sales
In
ahead.
contrast, foundry business is slow.
5% uhder those of April, it further
were
The
American
Institute
Steel
and
Iron
announced
the
that
•operating rate of steel companies having 96.1% of the steelmaking
•capacity of the entire industry will be at an average of 96.7% of
beginning June 6„ 1955, equivalent to
2,334,000 tons of ingots and steel for castings as compared with
capacity
the
for
week
•95.8% (revised) and 2,312,000 tons
a
week ago.
production rate for the weeks in 1955 is
annual capacity of 125,828,310 tons as of Jan. 1, 1955.
The industry's ingot
on an
For the like week
month ago the rate
a
was
97.2% and
pro¬
The operating rate is not
capacity was lower than capacity in 1955.
percentage figures for 1954 are based on annual capacity of
124,330,410 tons as of Jan. 1, 1954.
placed at 1,746,000 tons or 73.2%.
comparable
.
,
.
The amount of electric energy
distributed by the electric light
industry for, th% week ended Saturday, June 4, 1955,
estimated at 9,537,000,000 kwh., according to the Edison Elec¬
•and
tive
tric Institute.
This week's output decreased 439,000,000
kwh. below that of
the previous week, when the actual output stood at 9,976,000,000
kwh.; it increased 1,291,000,000 kwh., or 15.6% above the com¬
parable 1954 week and 1,441,000,000 kwh. over the like week
in 1953.
yr.
r
\
.
Loadings Advance 2% Over Previous Week and
14.6% Above Like Period of Last Year
Car
T
Loadings of revenue freight for the week ended May 28, 1955,
increased 15,757 cars, or
fell
week
as
28, 1955, totaled 790;176
Loadings for the week ended May
increase of 100,884 cars, or 14.6% above the corresponding
week, and an increase of 3,421 cars, or 0.4% aoove the cor-
1954
U. S. Automotive Output
V3-
Dropped 20% Below the
Preceding Week
The automobile
1955,
132,774
industry for the latest week, ended June 3,
cars,
compared
The past
week.
previous
amounted to
trucks
week's
with
167,455
production
159,017 units, or
a
assembled
(revised)
total
in
an
the
of cars and
decline of 20% below the
preceding week's output of 198,182 units, states "Ward's."
Last week's car output declined below that of the previous
I week by 34,681 cars, and truck output by 4,484 vehicles during
The week.
In the coresponding week last year 95,015 cars and
.16,299 trucks were assembled.
Last week the agency
States.
Jn the-United
.
16,299
week and
-
a
.
reported there
-
were
year ago.
~
;*and
[
Business Failures Hold Steady in Holiday Week
Canadian output last
Trucks.-and
Warehouse
areas.
stocks
In
the
of
reported
over
'•
Bureau.
Trading in lard
the weekend that representatives of
15
'
'
moderate with prices holding in a narrow
hog market was featured by continued broad
shipping demand. Prices were irregular and moved sharply up¬
The
in
National
was
live
late
dealings following marked weakness at mid-week.
were mostly steady with a
slightly easier
Spot cotton prices
trend noted at the close.
As¬
share.
per
The company, which has
joined
General Electric Co, to de¬
with
velop
nation-wide
a
service
for
television
stations, distributes
motion picture feature and
spe¬
cial
film
tions
series
The
to
the
across
television sta¬
country.
proceeds
are
expected
place National Telefilm in
position to
a
previous week
to
more,
acquire fu¬
ture film distribution
rights. Ex¬
hibition contracts written in
Maywere
highest in the company's
history,
tion
as
unbilled
were
exhibi¬
contracts.
Television
films
26
and
rights
for
seven
London's Korda studios
of
were
films
of
J.
Arthur
recently obtained
Television.
tional
Rank
by
Na¬
Combine Offices
Two
Call
members
Dealers
Kahn
of
Blair
\
Factors tending to depress the market included a
growing be¬
lief that the latest official forecast of exports would
prove
opti¬
mistic, the receipt of beneficial rains in parts of the cotton belt, and
the continued increase in the prospective
supply of "free" cotton
the result of loan repossessions and purchases from the
of
the
Put
and
Association, Ludwig
of
L.
P.
Kahn
and
Henry
Henry Blair and Co.,
expanded and moved to a
central
office
at
40
Exchange
have
Place, New York City. The
tral office is larger than the
cen¬
pre¬
vious space held
by the individual
and is equipped with all
firms
modern
and
facilities, including wire
cable
•
as
common
Telefilm
sociates, Inc., at $5
action
was
range.
of
slightly to
major coffee producing nations of Latin America and the Belgian
Congo had approved the creation of an International Coffee
systems
necessary
for
the
rapid execution of Put and
Call options.
Mr.
Kahn's
cable
address
is,
OPTIONS. Mr. Blair's cable ad-,
dress is
HENBLAIR.f
CCC.
Trading activity
in the 14 markets declined sharply, with
sales totaling 53,400 bales for the week,
against 88,400 the previous
week and 137,300 two weeks earlier.
Loan repayments "reported
in
the week ended
May 20
were
Trade Volume Aided
By Good Weather and Widespread
Promotions Rose 4 to 8% Above Like Period
Although trade
was
With Professional Service
(Special to The Financial Chronicle)
the largest weekly volume this
:
season.
active in the period ended
Year Ago
a
Wednesday
on
LOS
ANGELES, Calif.—Marion
L. Maroney has become
affiliated
with
Professional Service
Plan,
1122
Crenshaw
Maroney
was
Boulevard.
Mr.
previously with Cal¬
ifornia Investors.
"
Y;
of last week,
the loss of one shopping day in some parts of the
country substantially reduced the total dollar volume of retail
prior week.
sales from the level of the
Denault Adds
(Special to The Financial Chronicle)
Hard goods and men's apparel registered the most noticeable
gains
over
The
total
dollar
volume
retail
of
SAN
trade
in
the
week
ranged
FRANCISCO, Calif.—
staff
of
Denault
has
&
joined
Co., Rusg
Building.
a year ago,
according to estimates by Dun &
Regional estimates varied from a year-ago levels
With Hannaford Talbot
by the following percentages: Pacific Coast 0 to—4; Northwest +1
+5; New England 4-3 to 4-7; East 4-4 to 4-8; Midwest +5
to 4-9; South 4-6 to 4-16; and Southwest
4-7 to +11.
Although there was a moderate decline in sales of both
Kastendieck
women's
with
to
and
children's
apparel, the demand for men's clothing
rose
markedly.
Purchases of worsted and synthetic suits were
frequent and men's shoes were popular.
Automobile
than
week
•
above
Bradstreet, Inc.
last
Staff
to
Philip M. Philibosian
the
last year at this time.
from 4 to 8%
26,243 trucks made
This, compared with 30,727 in the previous
week was placed at 11,101 cars and 2,703
Dominion plants built 9,412 cars
2,245 trucks,- and for the comparable 1954 week 7,062 cars
1,312 trucks. ''*• v-r * —
—
:-+"■■
' -••
-
producing
by producing countries to bolster sagging prices
imminent.
seemed
.
"Ward's Automotive Reports,"
according to
'estimated
-
the
American
underwrit¬
are.
Widespread promotions and good weather contributed to much
higher sales than in the same week of 1954.
.xesponding week in 1953.
-
from
Co., members
and
offering of 312,500
an
shares
168,724 bags, from 170,237 a week earlier,
and compared with 108,599 bags a
year ago.
Coffee prices developed a firmer tone in the latter
part of the
2% above the preceding week, according
•cars, an
'
buyers
cocoa
to the Association of American Railroads.
!
as
power
f :was
!
week
commitments prior to the new wheat crop harvest.
Spot
prices remained steady but futures were somewhat easier
in dull trading. United States
importers of cocoa continued inac¬
ward
Electric Output Turns Lower in Latest Week
.
;T"
a
previous
&
York
ing
conseryative basis with all classes of buyers hesitating to
because
The
1
the
cocoa
It
A year ago the actual weekly production
tons.
duction 2,345,000
was
44,300,000
make
reports.
ibased
of Trade last week fell off to
from
New
favorable
on the Chicago Board
daily average of 36,000,000 bushels,
and 42,400,000 a year ago.
Flour prices were irregular and finished
slightly lower for
the week. Bookings of hard wheat
bakery flours continued on a
How
mand
the
Exchanges,
week,
generous
the belt.
over
Charles Plohn
of
Stock
year ago.
corn
lacked
Shares Offered
The
Grain markets generally continued to weaken
moved
irregularly during the week.
With
will
•when
year
index closed at 270.84
a
and
of the
24, and with 274.00
10,000,000 ton June would bring the first-half total to 57,400,000
tons.
Even if the first half of this year falls short of a record,
it will be the second largest first half, continues this trade weekly.
June
lowest level
45
dealers
in
reported that
more
new
cars
were
(Special
SAN
to
Financial
is
Chronicle)
how
Hannaford
California
sold
The
FRANCISCO, Calif.—C. L.
&
connected
Talbot,
519
Street.
Joins H. L. Jamieson
the
period preceding, although used car sales
declined somewhat.
Household appliances were in considerably
greater demand than a year ago, but sales of air conditioners
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—
goods, bedding and
outdoor furniture improved, television purchases remained at a.
Charles W. Partridge, Jr. has be¬
low level.
son
continued
to
While the buying of
lag.
case
come
connected with H. L. Jamie-
Co., Inc., Russ Building.
Wholesale
Commercial
•ended June
and
2 totaled
industrial
203
as
i
failures, in the holiday week
against 205 in the prior week, Dun
Casualties
Bradstreet, Inc., reports.
were
•Continuing below the prewar level, mortality was down 18% from
the toll of 249 in the similar week of 1939.
of $5,000
from 171 but did not reach the 193 of a
with
liabilities
with liabilities under
i -exceeded
the
25
in
or
more
year ago.
edged
up
to
173
Small casualties,
$5,000, dipped to 30 from 33, although they
1954.
Eleven
some
failures had liabilities above
$100,000, compared with 14 in the previous week.
sections of the
While
lower, however, than
in the similar weeks of 1954 and 1953 when 218 and 217 occurred.
Failures
activity in the week was moderately lower than
preceding week but substantially higher than in the corre¬
sponding period of last year. Observance of Memorial Day in
in the
-
some
wholesalers had
heavy
markets that competition
Department store sales
orders, there
was
was
(Special to The Financial'Chronicle)
evidence
on
A
further
slight easing in the Dun
& Bradstreet wholesale
| food price index brought the May 31 figure to $6.33, a new low
since April 7, 1953 when it stood at $6.32.
The current number
reflects a mild dip from the preceding week's $6.34, and a drop of
14.2% from $7.38
a year ago.
Up in wholesale price last week were rye, bellies, lard, pea¬
nuts, eggs, rice and hogs.
Lower were flour, wheat, corn, oats,
Parley, beef, butter, coffee and steers.
'•
The
31
[
raw
represents the sum total of the price per pound of
foodstuffs and meats in general use and its chief function
index
to show the general trend of food prices at the wholesale level.
Mutual
May 28, 1955, an increase of 10% was recorded. For the period
Jan. 1, 1955 to May 28, 1955, a gain of 7% was registered above
1954.
Retail
volume
trade
and
of
in
New
some
the
rain
York
City the past week, according to'
even
with
corresponding week
were
L.
Corn
Fund
responsible
for
of
or
slightly below the sales
last
Cooler weather
year.
the change
is
now
with
Associates, 444
a
Montgomery Street.
"
»-/'•.
ceding week May 21, 1955, a rise of 8% was registered from that
of the similar period of 1954, while for the four weeks ended
trade observers, was about
FRANCISCO, Calif.—
Thomas
increasing.
^
Wholesale Food Price Index Continues Mild Decline
SAN
in
country-wide basis as taken from
the Federal Reserve Board's index for the week ended
May 28,^
1955, advanced 10% from the like period of last year. In the pre-:
that of
j
With Mutual Fund Assoc.
country shortened the trading week.
Three With Reynolds
1
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—
Eugene S. Espey, .Jr., Worth W.
Howard, and Bruce T. Malm have
become
&
affiliated
with
Reynolds
Co., 425 Montgomery Street.
in trend of past
weeks.
According to the Federal Reserve Board's index department
sales in New York City for the weekly period ended May
28, 1955, advanced 8% above that of the like period of last year.
In the preceding week May 21, 1955, an increase of 2% was re¬
store
corded.
For the four weeks ended
occurred.
recorded
of 1954.
May 28, 1955, an increase of 4%
period Jan. 1, 1955, to May 28, 1955, the index
of 1% from that of the corresponding period
For the
a
rise
i
■
Li
t
111
Two Join Sutro Staff
(Special to The Financial Chronicle)
SAN
FRANCISCO, Calif.—
Gene C. Giannotti and Charles B.
Warren
are
Sutro
Co., 407 Montgomery St.,
&
members
of
now
the
San Francisco
affiliated
New
Stock
with
York end
Exchanges.
46
The Commercial and Financial Chronicle
(2678)
Investors Fund
Investing for Income
Mutual Funds
through
[
I
mutual fund,
a
a
diversified
I
■
I*
I
ROLE
played by
companies in
the
growth of atomic energy paves
the way to future expansion in
the chemical industry.
This role
is described in a new study en¬
titled
"Atoms
and
Chemistry '
THE
group
may
be
from your investment
j
con-
the risk
other
Prospectus and
obtained
information
dealer
Co.
Corporation
New York 5,
Chemical
of
by
Fund, Inc.
the
New York
j
in
areas
several of
panies are
of
atomic
radia¬
of
use
medicine, of radioa.tive
the study of chemical
in
tion
the
include
ments
field
the
which chemical com¬
active. M'ajor develop¬
in
energy
biological processes, the man¬
ufacture of fuel elements and other
and
materials for atomic reactors,
m
mining
and
fission¬
of
refining
and
able materials.
ATOMIC SCIENCE
study, commenting on the
of chemistry in atomic de¬
role
a
velopments, points out:
MUTUAL FUND.
chemical
"The
industry has a
relationship to atomic
energy developments. On tne one
hand, extensive chemical proc¬
essing is involved in the produc¬
tion of atomic energy.
On the
other hand, the chemical industry
ATOMIC DEVELOPMENT
is
a
FUND,
Inc.
designed to provide
managed investment
in
a
in activities
the
report as being presently en¬
gaged in one way or another in
atomic
At* $100 Million
resulting
The
crossing of the $100 million
mark in assets by the seven-yearTelevision-Electronics
old
GET THE FACTS AND FREE PROSPECTUS
D.
ATOMIC DEVELOPMENT SECURITIES CO.
Tripp,
the March
Per
M/irch
with
the
31
said
that
now
amount
of
resources
the
shares
The
mark
of
Fund's
earnings under
PALES
OK1
of
of
than
assets of but $290,399.
Please send
ten
me
prospectuses
and
describing
the
in
its
in¬
which
in
field
concentrates
the
electronics
—
manifestation, nucleonics.
"More
and
which
science
Name
a
second
tion
fund
a
he
a
medium for
these
As
"more
have
specialized
to
as
in
virtually
continued,
investors
more
turning
funds
motion
of human activity.
result,"
ing
in
set
affect
will
area
and
has
participat¬
dynamic
develop¬
ments.
the
record
a
balanced
a
seem
to
us
conservative
more
located
a
rate
record
of
2,000
These shareholders
not
only
.United States,
throughout
but in
a
are
the
number of
Spurgeon Bell
of
Business
Research
of
Ohio
State
University, a research economist
for the Brookings Institute, and
Resources
tional
and
subsequently
have
Ferren
wholesale
and
pany
been
Henry
appointed
Investment
-
for
Com¬
Stock
will
maintain
investment
deal¬
Mr. Ferren will
the
per share.
investment
At
the
r>r?yn|
entirely
a
U. S. mutual fund
vide
a
designed to
close
the
of
in stocks selected
on
first
the basis of pos¬
mutual
fund
of
petroleum
se¬
join E. M. EngChicago office, -which
Illinois, Indiana, Michigan,
Iowa, Minnesota, Kansas,. Ken¬
tucky, Missouri, Nebraska, > and
A
a
6.24%;
industries,
selected
for
long-term GROWTH of
capital and income
as
The Parker
fund
STREET, NEW YORK 5
Name.
Address.
U
on
13.85%
of total net assets;
12.81%;
and
Petro¬
Chemicals,
whereas to look towards the
the -total
brought
a
investment
to
cash and
investment
other assets.
satisfaction
greater peace of mind." i
in recent
GROSS
tjhe part of investors
on
salfes
%£cords
mutual fund began business
April 28 last and emphasizes
investments in the nuclear field
JRJay,
over"
under
also
months tjL 1.955
new'rfed.
a
114,635.
estab¬
solid
a
its
and
rearrange¬
to,T,^T*d
this
look-
the
"recession
In
lightened
reports it has
investment list,
g«ner"i
securities.
$439,-
;
more
resistant"
it
process
has
of the low¬
up on some
er-yielding utility stocks (includ¬
the
SALES-of
TOTAL
of
in
mg
jit the close of the
were
gradual
ment
Wellington's
months':period
five
policy.
Fund
continued
Gross
1954.
its investment
DELAWARE
$26,72£$00 for the first
lished
Fund
on
salesSor
the
month
to;' $4/750,000, a 10.2%
total net assets
'
or¬
new
that
for
sales
five
newly
May—its first month cf opera¬
tion—amounted to $337,110.
The
month.
of
'
.
in
SALES* of
Wellington
shares1 i# May
broke all
,
SALES of the
with
-
ganized Science & Nuclear
months."
previous
com¬
bination of long-term grov/ti
plus
satisfactory income return is to
increase one's chances for overall
The rer&puning 1.50% was
98.50%.
shares
period.
Ne+
^
assets
of
ing the elimination
of our longholding of Southern Com¬
pany) in favor of an increase in
$89,969,029,
007,281 of
ers
up
May
totalled
31
^
seem
Among these the Fund has
in; market
sified
w&re reminded that "the
advance
occurred
in
levels
recent
owned
years
of
Sound
investing."
the most
out that "the
economy
is
enjoying
rdbust health in several
decades,
and >within
pointing
American
years
the
will -advance
10
next
to
...
an-even
ized
subsidiaries
for
prof i ts 5 irom
transactions
cents
per
none
in
rof.
the
*
.
comparable
"
'
■
..
Business Shares
A Balanced Investment Fund
principal.'
Company
between
.
-
for
bal¬
a
preferred
stocks
common
-stocks
and
and
selected for growth.
f
J
'
Prospectus
New York
portfolio
supervises
bonds
stability,
upon request
:
'
■
Lord, Abbktt & Co.
—
Chicago
—
Atlanta
with
period
.
..»-
■
..
,
American
selected
first
investment
$375,000,; or / 26
share,-compared
the
.last year.
;
•
and * undis¬
052,810, or $2.10 per share, com¬
pared with $2,021,657-, or $1.39 per
share for the same period of 1954,
according to unaudited figures re¬
leased by the company.;
■"
r The
1955 earnings include real¬
higher plateau of prosperity" the
message
suggests that "to seek
-
Inc.
quarter of 1955 amounted to $3,-
perhaps important to
that fprice rise is but one
While
Services,
tributed net income of its wholly-
which
it
benefit
Earnings Up
Net income of Investors Diver¬
company
message,
recall
com-
45% from the $62,Sharehold¬
increased 25% to 34,000 I.D.S.
makes
be equally promis¬
but better dividend
a year ago.
during the sdme period.
Shareholders/
in
a
has
to
ing utilities,
?
at
Q Incorporated Income Fund
[3 Incorporated Investors
City
Largest
utilities,
in
leum,
bonds
and
ft,
assets.
were
stocJcs^Preferred stocks
qU^the equity type
common
Name
Address
April
whose
Corporation, 200 Berkeley St., Boston, Mass.
Prospectus
total/
holdings
group
at
8.56%.
"'
ONE WALL
a
of
of
Shares
International Paper,
w .ich
amounted to
was
April ^0, nearly 95% of
of
obtainable without
undue risk of
Established 1925
Please send
>
Fund's assets; was invesh d in
-
Established 1894
by Dividend
vantage ot inter¬
a
Dividend
1955
holdings
finagle, 0.57%.
anced
BULLOCK
of
cf government bonds an,!
3.65%
consumption goods, 4.23%;
transportation industries, 2.88%;
banks,
2.14%|~, merchandising,
The
CALVIN
price
conserva¬
a
currently held
ing of
30,
electronics,
4.73%;
As
the
has
The largest common stock hold¬
consumers durable goods,
5.14%;
in
that
mediate market corrections."
light manufacturing and
industries,- 8%; building
prime objective is to re¬
turn as large an INCOME
portfolio of
securities
participation in Canada's growth.
{Send for a free booklet-prospectus by
mailing this advertisement to
mutual
:
.
rise
suggest
Shares to t :ke
price ^advance at all times
is to speculate-on the improbable,
diversified
sible
cash
18,09% of the Fund's
portfolio, public utilities. 15.38%;
capital goods, 14.74%; chemicals,
service
substantial
reserve
industries
only
with
enterprises
e.
tive policy at this time," he report
states. ."This is ref.eete.d in t e
six
INCOME FUND :
A
business
be favorsb
stocks
many
comprised
covers
pro¬
diversified, managed investment
"over
stocks
common
already occurred
from
months, investments in equity
curities
."The
income.
:
is
the
payers.
and
in Washington as well as Flo¬
in
to
1954
Commonwealth
with
in
leading
what
Germann
work
of
seems
May 31 totalled $15,145,816, a gain
of 131%
over the
corresponding
headquarters at 734-15th Street,
N. W. in Washngton, D. C. and
will
states,
the
sup¬
year,
Planning Board
for the Inter¬
Fund.
Mr.
by
survey
forecast,
the
term
the
representatives
Commonwealth
its
vestment
Group Securities, during the first
half of its 1955*fisral year ended
for
Commission.
Commerce
from
the long term, the outlook for in¬
Na¬
economist
head
was
of
port
the Fund maintained
its 1954 dividend rate of 36 cents
in
economic
Twentieth Century Fund in
t''e first six months of its current
the
(
quoting
report,
recent
increase
director
a
North and South Dakota.
foreign countries as well."
*—
$20.27 as of Oct. 31,
1954, the report" 'showed. During
Gross
wis
at
month.
The
asret value of
fiscal
April
on
30, 1955.
share of the
524,88 on April 30, an
of $4.61
over
the net
Increase
31, 1954.
Oct. 31, 1954 to $2.51
cn
re¬
32,000
was
amounted
PROGRESS
PERSONAL
holders
a
its
to
30,
1955,
$150,469,358
on
•
;
i;
- y.
Net asset value per share in this
n onths
period rose from $2.12
Net asset value per
Fund
Fund
indicate
portfolio
rida, Georgia, Maryland, Virginia,
West Virginia and the Carolinas.
five
today
shareholders.
purchases of shares in
ers
past
issued
attitude
months, for
example," Mr. Tripp pointed out,
"we have been adding new share¬
the
"In
ing to the Fund ^semi-annual
April
on
with
six
the first fiscaE4haif year, accord¬
GROSS
been
mutual
$121,086,479 as of April 30,
increase of $34,023,420 for
the
on
date last year.
on
compared
a
high in net assets of
$179,054,699
an
May 31, 1955
on
he
of this BERNARD GERMANN
aware
great industrial revolu¬
that
every
State.
the
people,"
more
said, "are becoming
Address
of
assets
net
$111,000,000
were
state
U 124
City .1
potentialities
growth
Fund
Organization and the shares of your
Funds.
10%
period of
1954, according to George Put¬
nam, chairman of the trustees.
same
record
Get.
1955,
by Calvin Bullcck, shows
aged
fund
1954 to
1.97%, and
approximately
were
higher than in the
as
gteadily-increasing realization
herent
your
over
mutual
Inc:,
new
first five months
the
THE ELECTION of
the rapid
the Fund into a
Tripp attributed
mense
Company
85%
year ago.
a
for
1955
tne
than
more
Commenting
by the investing public of the im¬
50 Congress Street, Boston 9, Mass.
of Boston
Fund
were
Futures, Inc., a
commodity mutual fund, was an¬
development of
nounced
today
by Richard
D.
$100 million institution to a com¬
bination of market appreciation Donchian, President. Mr. Bell was
of securities in the portfolio and formerly head of the Bureau of
the
COMMON STOCK FUNDS
4Vio
higneot mr
any
month in its history.
New
sales
totaled
$1,900,000, an in¬
May
curing
to
Mr.
BOND, PREFERRED AND
P*
f)PW
Putnam
George
trast, Television-Electronics Fund
closed its first fiscal year in 1948
The Keystone
dend Shares, Inc., one of tne nations large mutual fundi man¬
Investors
managed
by
Investors
Diversified
Services,
Inc.,
rose
from
$87,063,059-as of Oct. 31,
10.84%;
when resources totalled $72,679,016. By way of striking con¬
Cus todian Funds
favorable
very
a
of
basis.
tax
investment
with
long-
reinvestment
the
and
Fund,
sales, Mr. Putnam said, "increased
year
ey stone
is
purpose
capital appreciation through
participation in
the growth of
$28 milliion since the start of the
t
on
term
same
climaxes
more
offered
20, 1954. The initial offering
period ended Jan. 20, 1955.
$100,300,000.
increase
assets
an
to
high
new
first
were
Oct.
compared with $82,000,000
Fund
on
$9D6
compared
initial value of $9.25 when
an
STREET, N. W.
WASHINGTON 7, D. C.
value
asset
net
was
of
assets
affiliate
nad
31, 1955 fiscal year-en a.
share
Total
Tripp
Mr.
President.
Canada
valued at $6 4il,-
net assets
774, and 688,289 s.ares outstand¬
ing owned by 2,800 investors at
Fund
reported this week by Chester
was
of
Fund
Keystone
net
Stock
port
NON-dividend pay'ng
NEW
total
activities.
energy
Sales
from Atomic Science*
1033 THIRTIETH
companies in the in¬
portfolio of Chemical
Fund, representing 73% of the
Fund's net assets, were cited in
May sales
Television Fund
variety of
of
consumer
vestment
crease
companies participating
major
a
30
Canada
reciprocal
MUTUAL
Over
The
The
through
be
products of atomic energy."
the
in
tracers
invest
should
THE
The survey discusses
Established 1930
120 Broadway,
F. Ebersiadt &
Inc., manager and distributor
just released
or:
National Securities &
Research
MAJOR
chemical
relatively high because
yield and
stocks selected current of of their
its
involved.
!;
Total
common
reasonable expectance
tinuance with regard to
The semi-annual report of Divi¬
By ROBERT R. RICH
tive of which ia to provide an
investment in
j' of bonds, preferred and
A l New Record
Reports Assets
the primary objec-
Thursday, June 9, 1935
.
Dividend Shares
Of $121 Million
j National Income Series
I
.
.
—
Los Angeles
Number 5436 ;"7. The Commercial and Financial Chronicle
Volume 181
pleted
a
in New York
Gas, which it
somewhat
undervalued,
position
&
Electric
State
thinks
promise
its
(despite
growth
of
through the St. Lawrence Water¬
way)
pissibly
because
of the
state. '
in the
administration
Demoeiatic
!
''
v
••
>(fThe Fund has also established a
new
position in Texas Gulf Sul¬
phur, a steady and reliable earner
which pays 5%, and whose busi¬
continue
should
ness
at
a
high,
in ref ection of the great ac¬
rate
fertilizer
and
the many minor industries
that consume sulphuric acid,
tivity
steel,
in
These
-i*
paper,
the
for
changes,
time since the present bull
started in June 1949,
ed in
first
th°
have result¬
-1 It is not great enough to be of
major significance, nor to reveal
a change to bearishness; but it is
great enough to give the manage¬
ment
should
there
"shake-out"
be
case
temporary
a
the
of
which
element
in
elbow-room
some
speculative
undoubtedly
has
previous fiscal
1954, net asset value per share
was $2.59. Total assets of the fund
increased from $101,576 on Sept.
30, 1954 to $170,332 at the end of
March, while total shares outstanding went from 30,006 to 43,025.
its appearance in the mar¬
in the past six months, the
made
assets
1955,
equal to $35.84 per share on 1,442,553 shares outstanding on that
date.
This
compares
with total
net assets of $44,293,235 a
year
ago, equal to $31.35 per share on
1,413,002 shares tnen outstanding.
STEVENS & C 1
SCUDDER,
a r
L. A. & S. F.
Board
total
net
of
assets
board
is
value
asset
Per share net
$21.72 on 437,996
outstanding
shares, compared
with $17 Der sha^e on 373,125 outstanding at that time.
On May 31,1955
total net assets
Consolidated Investment Trust
of
10
>0^000,000,
a
new
high. Per share asset value
$19.38 comparedrwita $37 a
was
year
earlier, an increase of 33.5%.
Baldwin
cisco
the
,
nave
ll1%
up
;
tive
of
of
as
CENTS A SHARE
May
high
93rd l.'imsrrutivr Quarterly Dividend
figures
290.26
CENTS
FUND
A
of
SHARE
payable
June
of record at 4:30
ers
24
net
25
May 31, 19&4,or
47%
from
-
sharehold¬
to
P.M., June 15, 1955.
for
assets,
is
now
a
$9.13
share,
per
May 31,
on
1954 to
$11 ™ "xU&ecy 31, 1955, an
increase of 30%rf.s
Federal Street, Boston
(Special
of shareholders
;feowth Fund
Canada,
jias-
Ltd.,
doubled
in
the
493
Dec.
on
The
Objective of this Mutual Fund is Long
Term Growth of
*
Fund is
.
Prospectus
.
on
through
reinvestment.
offerings
F. Eberstadt sl Co. Inc.,
Manager and Distributor
39 Broadway,
of Chemkal Fund, Int.
New York 6, N. Y.
have-access
volving
new
not
United
States
the
well-established,
and
Canadian
NEW
■■■■■■■■■■
•iusiiiaiiiiiii
■■■■■'■
■■■■v
!■■■>
|
IIIH
Y(ELUN0T0N
■ ■■
III
r
its
/ilia
mmrnm
*■■■■
net
assets
60 9%cm»A
in-
ago
year
an
on
FOUNDIPi 9 28
your
or
investment dealer
PHILADELPHIA
3, PA.
SCIENCE
-• +
^clear
A MUTUAL FUND
1500 Walnut St.,
Philadelphia 2, Pa.
formerly with First Investors
Corporation and E. E. Mathews
Co.
triply
are
on
With Draper,
Exchanges.
13
June
T
'
Huild-
With Mutual Distributors
to
The
CITY,
CITY,
nw.i
v
ed
branch
new
a
Boardwalk
at
the
under
office
Tennessee
With King Merritt
(Special to the financial chronicle)
SPRINGFIELD, Mo.—Hanson E.
Ware is
now
with King Merritt &
Company, Inc., Woodruff Building.
"7*11 L.
C
Mass.—John R. Jan-
BOSTON,
Mr.
of
;
(Special to The Financial Chronicle)
the
on
sen
C. T. Bilyea, Jr.
is
now
with
affiliated
Gold¬
Sachs & Co., 75 Federal St.
man,
"
will be Manager
of the Stock De¬
"
.
„
\
is
Johnston
Building,
of
R.
of
Partner
(Special to The Financial Chronicle)
Caranchini
Co..
of
Reading,
Pa.,
E.
is now with Investors
of New Eng¬
Devonshire Street.
Planning Corporation
Milbank,
General
Wood, Struthers &
announced.
Mass.— Elvezio
BOSTON,
land,
Pressprich Adds
S.
added to
staff of R. W. Pressprich & Co.,
Hardenbergh
the
Chronicle)
Mass.—Thomas
B O S T O N,
75 Federal
Slick
Airways.
68
(Special to The Financial
Mr.
and
Inc.,
R. W.
Milbank is also President and Direc¬
tor of the Pine Street Fund and
Director
of
American
Casualty
been
Company,
&
With Investors Planning
Charlotte,
Company, has been elected a di¬
rector of Manati Sugar Company,
has
Chronicle)
the staff of Hodg¬
10 State Street.
has joined
saf
don
as
Samuel
& Company
Company,
salesman at Wilmington,
N. C. and vicinity.
C.,
.
BOSTON, Mass.—Joseph E. As-
with
associated
now
Investment
•:'.«*
.
(Special to The Financial
CHARLOTTE, N. C.—Harry R.
Snapp
Southern
.,
With Hodgdon
has
been
Street.
With John G. Sessler
*
With Harley, Hay don
r
York
Sachs
Joins Goldman,
-
^
ZJlKna Corporation
E.
with
Stock Exchanges.
Boston
and
Avenue,
management
Harold R. Tyson.
it
**
„
Ralph
J.—Rey¬
N.
Mo. —Charles
.
Chronicle)
—
Street, members of the New
New Reynolds Branch
Elected Director
Avenue
Mass.
BOSTON,
this proposi¬
Bailey, Jr. is now connected
Financial Chronicle)
js connected with Mutual
Distributors, Inc., 1016 Baltimore
Sears
(Special to The Financial
to
With Southern Invest. Co.
,
Mr.
was
nolds & Co., members of the New
York Stock Exchange have open¬
N.
1,413,an in-
April*3Q,
1955,
Zilkha Corporation
is engaging
Chronicle)
(Special to The Financial
BOSTON,
(Special to The Financial Chronicle)
.
only 262,558 shares outstanding,
Net asset value per share was
$6.63 on April 36, 1955, compared
with $6.36 on Jtrrhr 31, 1955, and
$5.11 on April 30; 1U54. The April
30, 1955, and Jah. 31, 1955, net
asset
value figures
are
after a
cipal of the firm.
Joins H. L. Robbins Staff
-
(Special to The Financial Chronicle)
WORCESTER,
Mass.
—
gain
distribution
of
20
share paid on Aug. 20,
On April 55, 1955, a divi-
Canvas bound
per
months'
period ^nded
April
30,
JnCOme
to.aled 36.3 eents^per share.
valTief
ASSET
Futures, Inc.,
March
rose
31,
per
share
of
commodity mutual
$.T96 per share on
1955;—the first
six
a
to
months of the current fiscal year,
and compared
on
"FOR SALE"
Bernice
M. Delaney and Louis V. Robo are
now associated with H. L. Robbins & Co., Inc., 40 Pearl Street.
1954.
Miss Delaney was formerly with
dend of 9 cents .^er share, or the D.
J. St. Germain & Co., and
same
as
in the -previous quarter, Hanrahan & Co.
was paid by the~F<.nd.
In the 12
capital
cents
fund,
Science & Nuclear Distributors, Inc.
of
as
NET
Offered by
,
325
at
in the se¬
Sheffield
engage
business.
curities
Mass.—Evelyn R.
crease of 54.2% *»ver the Jan.
MADISON, Wis.—Fred G. Blum Sessler has joined the staff of John
31, in a securities business from ofG. Sessler & Co., 10 Post Office
1955, total of 916$16. A year ago fices at 120 Broadway, New York is now with Harley, Hayden & Co.,
Square.
*
:
'
as
of April 30, **954, there were City.
Ezra K. Zilkha is a prin- Inc., First National Bank Building.
717
Prospectus from
outstanding totaled
n.
'
'
to-
April 30, 1954, the net asset value
was
$1,342,595. sffhe number of
shares
Henry
—
on
to
Street
offices
with
Company
State
devel¬
volume
increased
has formed Sheffield
Draper, Sears & Co., 50 Congress
Raymond W.
...
KANSAS
bf the Fund
—
.
(Special
Jane 31, 1955,
on
pf
crease
.,
ing.
l*1™- S374'2T54^^m?n5fd w-ith
$5,82o,642
\
"athaway is now wUh Richard J.
emphasis* on
income,
reached new highs in the quar.er
ended
April 30^ 1955.
On this
date,
ORLEANS, La.
BOSTON, Mass.
TT
primary
aaaiiir
■■■■■»i
F inH
Fund,
with
ATLANTIC
(Special to The Financial Chronicle)
iC'-'f
raia»>smwin|
&
Conn.—Albert
LONDON,
NEW
C. Sheffield
With R. J. Buck Co.
well-
ASSETS' and number
Tn^ a ^^ t
Inc., i mutual fund with
(Special to The Financial Chronicle).*
Cali¬
be
partment.
enterprises.
IEh
In New London
will:
and
(Special to The Financial Chronicle)
rapidly expanding
managed
nf
■uaiiiBiiifta
York
New
T. J. Feibleman Ac'ds
reg-
in¬
should
markets
Exchange.
Sheffield & Co. Formed
Board
in
executed
submit their vote
the
to
securities
of
in
istered
Since
Canadian"acompany, the
a
stockholders
request
the
the
,
compounding of gains and income
including the New Science, Nuclear Chemistry.
be
the. staff of
Inc., 872 Main
members of the Midwest
Street,
Stock
tion.
of
Brooks has joined
Hincks Bros. & Co.,
(2)
Company, 231 South La Salle St.,
signed with specie-, tax advant¬
ages in mind in^addition to the
Capital -and Income through
Diversified Investments in the Chemical Field
BRIDGEPORT, Conn. —Donald
G.
.
wire system
until
members
Hincks Bros.
trial
a
the
oped in securities that
W. Fowler, Jr. has been added to
the staff of T. J. Feibleman & Co.,
Richards Building, members of the
de- New Orleans Stock Exchange,
was
will
traded
compared with
Templetqn Fund
^
of
Stock
since
1854.3,
1,
days."
of 90
have
company stated operations,
There were l,06^shgreholders on
1955,
proposal for
Coast
the
April 30,
action
committees
West
than
more
months
"This
Members
of
Templcton
said:
corporations;
closer
in
the
of
CHICAGO, 111.—John R. Hosty
has joined the staff of Sincere and
to
BRITAIN, Conn.—Edward
now associated with
& Co., 272 Main
Bogden is
Los
or
position of member firms; and (3)
Financial Chronicle)
The
S.
fornia, thereby strengthening the
L.
Midwest Stock Exchanges.
THE NUMBER
The
John
r
(Special to The Financial Chronicle)
NEW
the
on
C.
Brainard Judd Adds
"triply"
are
Exchanges. The govern¬
board has unanimously rec¬
Coast
Joins Sincere & Co.
net gain
period. The net
per.aghere increased
with
f
■
■.
that a
greater proportion of orders orig¬
inating in California and the West
The Financial Chronicle)
associated
porated, 1U0 Trumbull Street,
give greater service by the
Exchanges to public investors and
Donahue, 430 Sixteenth Street,
the
value
asset
95th Connerulire Quartrrly Dividend
Dividends
in .-total
of
both
listed
to
Tippin has joined the staff
Coburn & Middlebrook, Incor¬
(1)
DENVER, Colo.—Earl D. Keary
$1,410,668.45 compared with $955,-
EATON & HIIWABU
11
(Special
floors
stated that this
'
reporting
Conn.—Mrs. Bar¬
bara C.
Brainard-Judd
The- Chairman
Columbia Securities Company, In-
195& shows record
number^ of stockholders were
and
shares outstanding.*- Assets
b
STOCK
Investors
is
of
purchase
or
Agnew
period
Joins John L. Donahue
31,
sale
ommended the
corporated, Equitable Building.
•'
Ex¬
proposal
study by special
ing
become affiliated with
l4jig.|-penod last
correspt
SOVEREIGN
BALANCED FIINII
A
of $1,819,340
"""wn
year.
EATIIIM & HlllTAItl)
15
the
in
Dividend Announcement
~
^Ve
for
Mr.
Smith
D.
Stock
HARTFORD,
follows several months of coopera¬
William D.
—
(Special to The Financial Chronicle)
Fran¬
members
by
Temple
152
(Special to The Financial Chronicle)
Two With Columbia
Michael
similar
on
Inc.,
With Coburn Middlebrook
either the San
Angeles Stock Street.
Exchange after first being offered
on
the Exchange in the city of
With
origin.
■■■''/; \
v
(Special to The Financial Chronicle)
Colo.
San
of stocks which
trading
sales
and
the
Los Angeles
Francisco
$889,765—the second
DENVER,
of
Funds',
A.
connected with
Los
able
Gartley & Associates, Inc.; Seere-
O'Neill
mem¬
and San Francisco be made avail¬
Jnne 7. The other officers elected
f°r tne coming year were: VicePresitent
Helen E. Dickinson of
highest sales mqnth in the com¬
pany's 17-year ,,|yi story. These
were up 11$ fe over those of
$420,860 in Mg^L954.
Income
Marjorie
and
are now
Street.
traded in New York, Los Angeles,
meeting pf the
Women's bona Club was held on
ar*nual
records were estab- tary—Mary A. Wrenn of Merrill
by Dela^iSjre Fund in May Lynch, Pierce, Fenner & Beane;
and the fiist
fi^months of 1955. and Treasurer—Marjorie M. Jones
Gross sales oil shares in May
White, Weld & Co.
to
and
group
lished
amounted
floors
Nucci,
governing
Angeles Stock Exchange.
The plan provides that a selected
SALES
NEW
has
the
submitting to the
changes.
A
being voted
President of the Women's Bond
Club of New York for a second
term. Miss Baldwin is a trust administrator at the Irving Trust
Company.
that
Jr., A. G. Kochersperger,
Thompson
San
a
trading
re-elected
was
Michael
the
proposal to install direct
private wire facilities linking the
Elects Officers
Jane
of
Exchange,
Stock
was
bership
year ago.
a
Governors
Francisco
May 31, 19o5, compared with $6,344,709
of
Funds, Inc.
Conn. —Wesley
HAVEN,
S. Lubee,
FRANCISCO, Calif.— Wil¬
liam H. Agnew, Chairman of the
47
(Special to The Financial Chronicle)
NEW
Exchanges
SAN
Women's Bond Club
k
reports
$9,511,635 on
Join Income
Propose Wire Linking
announced
rriiS0SSrtfSa^Si^fe &
ket
Fund notes.
On March 31,
year.
Common Stock Fund, Inc.
amounted
;''
cta+es.
SCUDDER, STEVENS & Clark
Fund, Inc. reports, total net
of $51,697,776 on'%Iay 31,
market
small uninvested balance,
a
(2679)
with'$3.39
per
share
Sept. 30, 1954^the close of the
Greater Continental Co.
COMMERCIAL
.
been
formed
with
offices
at
This beautiful set
,
CHRONICLE
1926-1953 inclusive.
available
immediately at a
downtown Brokerage
House.
927
Fifteenth Street, N. W., as sucto F. W. Reinig & Co. Officers are F. W. Reinig, President,
Marshall I. Stewart, Vice-President; and J. B. Reinig, SecretaryTreasurer.
cessor
FINANCIAL
covering the years
WASHINGTON, D. C.-The
Greater Continental Company has
&
volumes of the
Phone REctor 2-9570
.
Edwin L. Beck
c/o Chronicle
25 Park PI.
N.Y. 7
43
The Commercial and Financial Chronicle
(2680)
.
.
.
Thursday, June 9, 1955
* IN DICATES
Now in
Securities
Uranium
State
All
Corp.,
Moab,
Automatic Remote Systems,
(6/15)
Utah
April 19 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent).
Price—30 cents per share.
Proceeds—For
mining operations.
Underwriter—Gen¬
Industrial
Allied
Development Corp., Dover, Del.
April 7 (letter of notification) 300,000 shares of class A
stock. Price—At par ($1 per share). Proceeds—For oil
end
Under writer
activities.
gas
—
Paul C. Ferguson &
Co., Houston, Tex.
Hotel of
Ambassador
offered
be
ord
May
17,
share held.
New York,
Inc.
1955, on basis of one new share for
Price—To be supplied by amendment.
ceeds—To repay
each
Pro¬
Underwriter—None.
bank loans.
Asbestos
American
Co., Ltd.
3feb. 17 (Regulation "D") 600,000 shares of common stock
Price
(par $1).
—
ment
•
Proceeds—For
Underwriter—Maine Invest¬
50 cents per share.
general corporate purposes.
Co., Ltd.
American Machine & Foundry
Co.
each
held; rights to expire on June 22, 1955.
shares
10
Underwriter
working capital.
expansion and
Proceeds—For
share.
per
—
Union Securities Corp.,
Hew York.
stock
from time to time on the New
(no par)
York Stock
Price—At market then prevailing. Proceeds
receiving such shares in
Exchange.
To certain stockholders who are
exchange for stock of The
to
a
Co.,
plan.
reorganization
Lamb Electric Co. pursuant
Agent—American Securities
American
(letter
11
Receiving Units, working
purposes.
Office—Balti¬
Underwriter—Mitchell Securities, Inc., same
Sending
and
general corporate
Md.
city.
(6/22)
(letter of notification) 99,800 shares of class A
capital stock (par 10 cents). Price—$3 per share. Pro¬
ceeds—For working capital.
Business—Electronic meas¬
2
58-15 Northern
Office—
controls for aircraft.
instruments and
Boulevard, Woodside, L. I., N'. Y.
Under¬
writer—Cohu & Co., New York.
•
Baltimore Gas & Electric Co.
May 19 filed 645,856 shares of common stock (no par),
of which 575,856 shares are being offered for subscrip¬
tion by common stockholders of record June 7 on basis
of
one
pire
share for each
new
on
offered
shares held;
10
June
22; the remaining
employees (excluding
to
rights to ex¬
shares being
70,000
officers)
up
to and
including July 6, 1955. Price—$30.25 per share. Proceeds
—To repay bank loans and for construction expenditures.
Corp., New York.
if Bankline Oil Co., San Francisco, Calif.
8 filed
65,000 shares of cumulative convertible
preferred stock (par $25). Price — To be supplied by
June
amendment.
Proceeds—To
retire
pansion and other corporate
indebtedness, for ex¬
Underwriter—J.
Francisco, Calif. Meeting—Stockhold¬
to vote June 14 on approving financing.
if Beaumont Factors Corp., New York
7 filed $1,000,000 of five-year 8%
subordinated
debentures due July 1, 1960.
Price—100% of principal
amount.
Proceeds—For working capital and expansion
of loan business. Office—325 Lafayette Street, New York
June
12, N. Y. Underwriter—None.
of notification)
stock (par one cent).
ceeds—For
•
York, N. Y.
•
Aquafilter Corp. (6/14)
May 13 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price — $2 per share. Proceeds—
For working capital and
general corporate purposes.
Office—270 Park Ave., New York, N. Y. Underwriter—
Vickers Brothers, New York.
/
mining
Office
expenses.
—
156
East Third
South St., Salt Lake City, Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.
Instrument
Belock
Co.
(6/21)
May 31 filed 200,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
For general corporate purposes.
Office — College
Point, L. I., N. Y. Underwriter—Carl M. Loeb, Rhoades
& Co., New York.
—
if Black Mammoth Consolidated Mining Co.
REVISED
ISSUE
Capitol Reef Uranium Corp., Reno, Nev.
May 18 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1
per share.
Proceeds—•
For
mining
Reno,
Office—First National Bank Bldg.,
Meyer & Bartlett,
expenses.
Nev.
Underwriter—Franklin,
New York.
Carbon Uranium Co.
(Utah)
April 27
(letter of notification) 746,280 shares of com¬
stock (par one cent). Price — 25 cents
per share.
mon
Proceeds—For mining costs.
Co., Salt Lake City, Utah.
Underwriter—J. E. Call &
• Century Natural Gas & Oil Corp.
(letter of notification) 546,500 shares of com¬
mon
stock.
Price—5.76 cents per share.
Proceeds—To
certain selling stockholders. Underwriter—Greenfield
&
Co., Inc., New York.
May 31
Chieftain Uranium Mines, Inc.
April 22 (letter of notification) 4,000,000 shares of capi¬
tal stock. Price—At par (five cents per
share). Proceeds
—For mining operations. Office—223 Phillips Petroleum
Bldg., Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., same city.
r
it Clausin (S. H.) & Co., Minneapolis, Minn.
May 16 (letter of notification) 2,250 shares of 5% cumu¬
lative
preferred stock.
Price—At par
($100 per share).
Office—41 North 12th
Underwriter—None.
working^ capital.
Proceeds—For
St., Minneapolis, Minn.
•
Coffee Time
purposes.
Barth & Co., San
PREVIOUS
ITEMS
•
l
• Avien, Inc.
June
May 26 (letter of notification) 20,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
Metals Corp., N. Y.
Rare
300,000 shares of com¬
Price—$1 per share. Proceeds
—To repay debt and for general corporate purposes.
Underwriter—Equity Securities Co., 11 Broadway, New
May
mon
Teleac
and
if Beehive Uranium Corp., Salt Lake City, Utah
York.
New
of
more,
ers
ir American Machine & Metals, Inc.
3 filed 80,000 shares of common
June
to be offered
540,000 shares of common stock (par 50
Price—$3.75 per share. Proceeds—For manufac¬
cents).
ture
Inc.
filed
Underwriter—The First Boston
May 19 filed 236,205 shares of common stock (par $7)
being offered for subscription by common stockholders
'of record June 7, 1955 on the basis of one new share for
Price—$26.75
3
urement
163,898 shares of common stock (par $1)
for subscription by stockholders of rec¬
19 filed
May
to
March
capital
Corp., New York.
eral Investing
Registration
AD DITION S
SINCE
May 9
Products
of
America,
Inc.
(letter of notification)
165,500 shares of class A
(par $1), being offered in exchange for
stock of American Dry Ginger Ale Co., Inc., on basis of
stock
common
one
share of Coffee Time stock for each American
Dry
The offer will expire on June 20.
Office —4T
share.
Lemartine St., Boston, Mass.
•
Underwriter—None.
Colohoma
Uranium, Inc., Montrose, Colo. (7/5)'
April 21 filed 2,960,000 shares of common stock (par on©
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
ate
Underwriters—General
purposes.
Investing
Shaiman & Co., Denver, Colo.
New York; and
Corp.,,
• Colorado
Sports Racing Association (6/15)
April 29 filed 600,000 shares of common stock (par fiv©
cents). Price—$1 per share. Proceeds—For purchase off
land and other facilities and for working capital.
Of¬
fice—Grand Junction, Colo.
Underwriter—General In¬
vesting Corp., New York.
Colzona Oil & Uranium Corp., Denver, Colo.
April 29 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
May 12
Ariel
Davis
Manufacturing Co.,
Inc.
May 16 (letter of notification) 150,000 shares of common
stock (no par).
Price—$1 per share.
Proceeds—For new
equipment, improving and remodeling building and for
working capital. Office—3687 South State St., Salt Lake
City, Utah. Underwriter—None.
Bancorporation, Phoenix, Ariz.
April 29 filed 100,000 shares of common stock (par $10)
being offered for subscription by stockholders of record
May 20 on basis of one share for each three shares
.held; rights to expire on June 15. Price—$15 per share.
Proceeds—For working capital and future general cor¬
Arizona
porate
•
Underwriter
purposes.
Artesian Water
—
Co., Newport, Del.
and class A common stockholders of record
May 28
on
Price—$20
a
per
share to stockholders; and $22 to public.
sell & Meeds,
•
Proceeds—For
Underwriter—Laird, Bis-
improvements.
Gay, Stapleton Bldg., Millings, Mont., will act as agent
the company.
Office — 159 Colorado Ave., Grand
for
Junction, Colo.
ing, Denver, Colo.
Underwriter—None.
stock
Price—To be supplied by amend¬
Proceeds—To build and equip plant for Canadian
ment.
for working capital. Business—Manu¬
rotating equipment.
Underwriter—
and
electrical
Blair & Co. Incorporated,
April 29 filed $2,000,000 5% convertible notes due July
1, 1975 to be offered for subscription by common stock¬
holders
rate
at
of
$100 of notes for each 100
shares
of
stock
held.
Price—95% of principal amount to stock¬
holders and 100% to public. Proceeds—For development
costs and general corporate
purposes.
Underwriter—
None.
•
Bridgeport Hydraulic Co.
May 11 filed 55,000 shares of
to
be
offered
ic Atomic Eenergy for Industry, Inc.
May 16 (letter of notification) 40,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
equipment and materials for laboratory and for work¬
ing capital. Office—344 Hanna Bldg., Cleveland 25, Ohio.
holders of
Underwriter—James H.
first
for
(6/13)
common
subscription
by
stock
(par $20)
common
stock¬
&
same
address.
new
on
share
.
record
June 8, 1955 on the basis of one
eight shares held; rights to expire
Price—$28 per share. Proceeds—To repay
for
June 28.
on
each
bank loans and for property additions and improvements.
Underwriter—Smith, Ramsay & Co.; Chas. W. Scranton
Co.; G. H. Walker & Co.; Hincks Bros. & Co., Inc.; and
T. L. Watson & Co., all of Bridgeport, Conn.
Brown Co.,
March
17
filed
Berlin, N. H.
$14,217,100 of debentures due May
1975, and 142,171 shares of
common
into
their
common
shares
stock.
These
$100 of debentures and
each $5
for
15,
stock (par $1) being
one
redemption
holders
may
share of
preference share held.
Price
or
conversion
subscribe
for
stock
for
common
$100 per unit.
Proceeds—For redemption of $5 preference stock.
Un¬
derwriter—None.
New York.
Boston
Pittsburgh
Chicago
Philadelphia
San Francisco
Private IFires
to
all
offices
Cleveland
—
Statement effective May 18.
Cal-U-Mines, Inc., Reno, Nev.
May 2 (letter of notification) 2,250,000 shares of
mon
stock.
—For
Nev.
Finance Corp., Omaha, Neb
(letter of notification) 150,000 shares of 7%
cumulative preferred stock (par 95 cents) and 15,000
shares of common stock (par one cent) to be offered in
11
of
shares
10
stock.
common
preferred stock and
$10
one
share
off
unit. Proceeds — For
Underwriter—J. J. Riordan & Co., Inc.,
working capital.
42
of
Price
—
per
Broadway, New York City.
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock
(par
10
cents).
d'Alene, Idaho.
kane, Wash.
Price—25
cents
per
share.
Pro¬
com¬
Price—At par (10 cents per share). Proceeds
Office—326 Wiggett Bldg.,
Underwriter—M. A. Cleek, Spo¬
if Consolidated Cigar Corp., New York (6/27-30)
filed $17,500,000 of 20-year sinking fund debenr
1, 1975. Price—To be supplied by amend¬
June 3
tures due June
ment. Proceeds—To repay outstanding long-term indebt¬
edness and short-term bank loans and for
working capi¬
tal.
Underwriter—Eastman, Dillon & Co., New York.
Consolidated Fenimore Iron Mines Ltd.
Jan. 24 filed 204,586 shares of common stock
to
be
offered
for
subscription by
common
(par $7),
stockholders
of record Feb. 7, 1955 at the rate of one new share fof
each five shares held. Price—$2.20 per share. Proceeds
—From
sale of this
stock, plus $440,000 to be available
200,000 shares to Alator Corp. Ltd. and
Yam Securities Ltd., and
$175,000 treasury funds, to be
used to pay for geological
surveys and metallurgical re¬
search, for drilling expenses and other general corporate
from
sale
of
Office—Toronto, Canada.
purposes.
Consolidated
Natural
Gas
Underwriter—None.
Co.
April 27 filed 738,721 additional shares of
capital stock
(par $10) being offered for subscription by stockholders
2, 1955 at rate of one new share for each
of record June
shares
10
$31
per
held;
rights to expire on June 21.
Price
Proceeds—To repay bank loans and to
from or make loans to
company's
share.
purchase
securities
subsidiaries for
use
for the their construction
programs
Underwriter—None.
Consolidated
Toronto,
mining expenses. Office_i39 Virginia St., Reno,
Underwriter—Coombs & Co. of Las Vegas, Inc.,
Las Vegas, Nev.
Office—1220 Lewis
Underwriter—None.
Confidential
March
•
offered for subscription by holders of "called" $5 cumu¬
lative convertible first preference stock who have not
surrendered
Larimer
ceeds—For mining expenses.
New York.
Bonnyville Oil & Refining Corp., Montreal, Can.
Co., Inc., Philadelphia, Pa.
May 11 filed 98,195 shares of common stock (no par)
being offered for subscription by stockholders of record
June 6, 1955, on the basis of one new share for each
four shares held; rights to expire on June 27. Additional
subscription privilege for unsubscribed shares, by stock¬
holders and employees. Price—$5 per share. Proceeds—
To reduce bank loans.
Underwriter—Auchincloss, Par¬
ker & Redpath, Washington, D. C.
working capital.
Bldg., Philadelphia 2, Pa.
Coeur
Wilmington, Del.
Artloom Carpet
Frier, Jr.,
Tower
(par $1).
subsidiary;
factures
Office—1300
expenses.
if Commercial Process, Inc., Philadelphia, Pa.
May 12 (letter of notification) 1,000 shares of common
stock
(par $10).
Price—$120 per share. Proceeds—To
units
mon
mining
make loans and for
if Blue Chip Uranium Corp., Denver, Colo.
May 27 (letter of notification) 250,000 shares of com¬
mon
stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For mining costs, etc.
Office—Denham Build¬
Bogus Electric Mfg. Co. (6/20)
May 25 filed $2,000,000 of 5% convertible subordinated
debentures due June 1, 1970 and 335,000 shares of com¬
l-for-3 basis; rights to expire on June 30.
and
St., Denver, Colo. Underwriter—Peters, Writer & Christensen, Inc., Denver, Colo.
(letter of notification) 73,334 shares of common
five cents) to be issued in exchange for oil
leases in Stillwater and Yellowstone Counties, Montana,
at rate of 3% shares for each acre acquired. Kaufman &
•
None.
April 26 (letter of notification) 5,446 shares of class A
common
stock (no par) being offered first to common
additions
Proceeds—For
stock ,(par
Sudbury Basin
Mines,
Ltd.,
Canada
Jan. 31 filed 3,000,000 shares of common stock
(no par).
Price—To be supplied by amendment.
Proceeds
For
exploration and development of properties.
be
sold
—Stock
to
through
underwriters
States.
on
or
Toronto
Stock
selected
dealers
Underwrite*
Exchange
in
or
United
Volume 181
Number 5436
.
The Commercial and Financial Chronicle
..
★ Cortez Uranium
M<ay 27 (letter of
mon
& Mining
Co., Denver, Colo.
notification) 3,000,000 shares of
stock
(par
one
cent).
Price—10
Proceeds—For mining expenses.
Building, Denver, Colo.
cents
•
com¬
share.
per
Office—404 University
Underwriter—Peters, Writer
Christensen, Inc., Denver, Colo.
&
★ Coso Uranium,
Inc., Long Beach, Calif.
May 31 (letter of
notification) 3,000,000 shares of capi¬
tal stock.
Price—At par (10 cents per
share). Proceeds
—For
mining expenses. Office—2485—American
Ave.,
Long Beach 6, Calif.
Underwriter—Coombs & Co., of
Los
Angeles, Inc., San Francisco and Los
Angeles, Calif.
★
Cosmopolitan
Life Insurance
Tenn. (6/13-14)
May 16 filed 162,080 shares
Co.
of
Memphis,
of common stock
(par $5).
Price—To be supplied
by amendment. Proceeds
For
selling stockholders. Business
Sells industrial and
ordinary life insurance and accident insurance in
State
of Tennessee.
Underwriter—Allen & Co., NeW York.
it Crossett Co.,
Crossett, Ark.
May 17 (letter of notification) not in
excess of $300,000
—
—
aggregate market value of class A and
class B stock (par
$5). Price—To be supplied
by amendment. Proceeds—
For general
corporate purposes.
Underwriter—Blyth &
Co., Inc., New York.
Crown Uranium
Co., Casper, Wyo.
May 6 (letter of notification)
225,435 shares of common
stock (par five
cents). Price—At market (estimated at
.about
15
cents per
share). Proceeds—To selling stock¬
holder who received these
shares in exchange for
shares
.of Kontika Lead & Zinc
Mines, Ltd. Office—205
Star
Bldg., Casper, Wyo.
Underwriter—Justin Steppler, Inc.,
New York.
Cuba
April
(2681)
(Republic of)
filed $2,500,000
29
Public Works
of
of
bonds due
4%
Veterans,
Courts and
Price—Expected as 99%
1983.
principal amount.
Proceeds—To Romenpower Electra
Underwriter—Allen & Co., New York.
Construction Co.
Offering—Expected this week.
Dalmid
Oil
&
May 9 (letter of notification) 2,999,000 shares of
stock
(par
common
cent). Price—10 cents per share. Pro¬
mining expenses. Office—1730 N. Seventh
one
ceeds—For
St., Grand Junction 2, Colo. Underwriter
Securities Co., Inc., Denver, Colo.
Columbia
—
^ Deep Rock Water Co., West Palm Beach, F'a.
May 23 (letter of notification) 150,000 shares of class A
common
stock.
Price—$1.25 per share.
Proceeds—To
acquire Grapette Bottling Co. and for working capital.
Underwriter—Anderson Cook Co.,
Inc., Palm Beach, Fla.
^ Den Rado Products, Inc., Littleton, Colo.
May 11 (letter of notification) 25,000 shares of cumula¬
tive
convertible
shares of
of
one
unit.
preferred
stock (no par) and 50,000
(par $1) to be offered in units
stock
common
preferred and two
Office
4002
—
shares. Price—$10 per
equipment and working
Clay St., Littleton, Colo.
common
Proceeds—For plant and
capital.
South
Underwriter—None.
ISSUE
[• •
June 10
to
April 18 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For
mining operations. Office
343 South
St., Salt Lake City, Utah. Underwriter
J. W.
Hicks & Co., Inc.,
Denver, Colo.
—
State
—
Douglas Aircraft Co,. Inc.
May 26 filed 138,210 shares of capital stock
June
13
Bridgeport Hydraulic
Offering
Co.;
to
Chas.
Bros.
&
&
Inc.
T.
G.
by
H.
Watson
Smith,
Walker
&
&
June
Aquafilter
Co.)
Fifteen
Co.;
55,000
&
Hincks
Oil
Mueller
(Van
Memphis,
Rotan, Mosle, Inc.)
Fuller
&
(Milton
and
Blauner
D.
Baruch
(Hulme,
Corp.
and
Noel
&
and
&
Co.)
Co.,
CDT)
Co.,
Hertz
(Bear, Stearns & Co.)
(Bids
(Offering
11
to
Corp.)
Weld
underwriting)
Co.)
Co
&
CO.)
and
(A.
C.
(Union
Common
to
Debentures
&
Boston
Co.
Corp.)
Inc.)
Debentures
Co.
to
Colohoma
198,990
by
The
&
Co.
Common
by
Blyth
&
(Van
(Van
noon
Electronics
Alstyne,
Jerrold
Noel
&
335.000
Noel
&
EDT)
and W. C. Langley & Co.) 624,170 shares
5
and
'■
Common
*
■
>:
(General
.
&
'
and
Corp.)
$700,000
to
be
Sherrerd)
(S.
D.
&
Sherrerd»
Fuller & Co.)
Bonds
_
Co.)
& Co.,
Inc.)
&
Turner
June 21
M.
Loeb,
a.m.
EDT)
373,689
shares
(Thursday)
Co
...Preferred
Stanley
<fe
Co.)
100,000
280,000
shares
(Bids
Utah Power
Co.)
200,000
to
be
to
be
r-hares
Southern
$15,000,000
177,500
shares
expansion program.
New
be
invited)
500,000
—
Price
To
—
To be supplied by
loans and for
retire bank
Underwriter—Bear, Stearns & Co.,
;
,'v•
York.
.
it Falcon Uranium Co., Shereidan, Wyo.
May 26 (letter of notification) 20,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬
ing operations. Office—First National Bank Bldg., Sheri¬
Underwriter—None.
Farmington
Funding Corp.,
Colorado
Springs,
Colorado
May 17 filed 3,000,000 shares of capital stock (par one
Price—$1.25 per share. Proceeds—For explora¬
and development expenses
and working capital.
Underwriter—French & Co., Houston, Tex.
tion
Federal Security Insurance Co.
April 21 (letter of notification) 6,000 shares of common
stock (par $10) to be offered first to stockholders on
the
basis
of
one
new
shares
share
share.
per
for
each
five
shares
Proceeds—For general
held.
corporate
Office—Newhouse Bldg., Salt Lake City, Utah.
Underwriter—Allied Underwriters Co., same address.
March
14
Uranium
(letter
stock
common
Corp.
notification)
of
(par
cents).
one
3,000,000
Price—10
shares
cents
of
per
Proceeds—For
Second
mining operations.
Office—122
Street, Salt Lake City, Utah. Un¬
Schenin Co., New York.
South
J.
.
Fidelity Insurance Co., Muilins, S. C.
'
March 25 (letter of notification) 86,666 shares of
stock
(par $1).
increase
Price—$1,871/2
per
share.
com¬
Proceeds
capital and
surplus. Underwriters—Mc~
Co., Greensboro, N. C.; Dietenhofer &
Heartfeld, Southern Pines, N. C.; and Calhoun & Co.,
Spartanburg, S. C.
Daniel
Lewis
&
(6/14-15)
May 25 filed 200,000 shares of
which
expenses
&
175,000 shares
are
to
common
be
sold
stock
for
(par $1)
account
of
and
25,000 shares for selling stockholders.
supplied by amendment.
Proceeds—For
incident to oil activities. Underwriters—White,
be
Co.,
Tex.
New
York,
and Rotan,
Mosle,
Inc., Gal¬
|
Fowler Telephone Co., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties in
Leighton, la., and for conversion of both exchanges to
operation.
Underwriter
—
Wachob-Bender
Corp.,
it Freedom
Insurance Co., Berkeley, Calif.
1,000,000 shares of common stock (par $10).
Price—$22 per share. Proceeds—For capital and surplus.
except, life, title and
University Avenue, Berkeley,
Calif., c/o Ray B. Wiser, President. Underwriter—Any
mortgage.
Common
to
May 1, 1975.
Proceeds
Business—All insurance coverages,
(Wednesday)
Co.
(Bids
(6/15)
June 6 filed
Common
invited)
&
Omaha, Neb.
Bonds
invited)
Light Co
November 9
Common
&
&
(Bids
shares
Co.
(Tuesday)
Utah Power & Light Co.
(Tuesday)
Rhoades
13
outstanding
May 20 filed $3,500,000 of convertible subordinate de¬
dial
$750,000
..Common
Instrument
Power
September
50,000 shares
Corp
(Carl
.Common
11
retire
6 filed 300,000 shares of capital stock.
Price—At
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.
Weld
Co
July 21
Consumers
$750,000
Common
Herrlck
Guerin
Power
to
Underwriter—Courts
par
veston,
(Wednesday)
stockholders—bids
to
(Morgan
Stewart Oil & Gas Co
Eppler,
(Offering
$497,250
Electronics Co. of Ireland
Price—To
Common
D. Fuller &
(Barrett
Consumers
$800,000
Preferred
Pyramid Electric Co
(S.
$2,750,000
and
preferred stock.
Jan.
company
$30,000,000
invited)
notes
money
Co., Atlanta, Ga.
of
Common
Butcher
chase
Fifteen Oil Co.
Common
Investing
July 20
:'i
Corp
Co.
it Economy Auto Stores, Inc., Atlanta, Ga. (6/21)
1 filed 120,222 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To re¬
tire $528,125 of 6%-8% unsecured and subordinated
pur¬
(Friday)
Illinois Bell Telephone Co
(Bids
—Debentures
Butcher
Dyno Mines, Ltd., Toronto, Canada.
25 filed 1,100,000 shares of common stock
(par
$1). Price—To be related to the current market price
on the Toronto Stock
Exchange. Proceeds—To American
Trading Co. Ltd., the selling stockholder. Underwriter—
R. W. Brown Ltd.,
Toronto, Canada, on a "best-efforts
—To
(Tuesday)
Investing Corp. and Shaiman & Co.) $1,250,000
shares
Pyramid Electric Co
Belock
Inc.;
July 12 (Tuesday)
$3,270,000
Corp
Co.
Electronics
Alstyne.
Tekoil
Co.,
Equip. Trust Ctfs.
(Bids
redemption of 5% cumulative preferred stock (par $25);
share.
Uranium, Inc.
$2,000,000
Common
Incorporated)
be supplied by amendment.
treasury in connection with
reimburse
to
repay
bank loan;
and
for additional
equipment.
Underwriter—Lee Higginson Corp., New York.
derwriter—I.
^Debentures
Erie RR.
Jerrold
First
shares
(Friday)
July 8
.
Bogue Electric Mfg. Co
(Blair
Price—To
1975.
Federated
Common
stockholders—underwritten
(General
(Monday)
Incorporated)
1,
Co., Inc., Dayton, Ohio (6/21)
$1,500,000 of subordinated debentures due
filed
Proceeds—To
$25,000,000
Long Island Lighting Co.
(Offering
shares
Bogue Electric Mfg. Co
&
1
West
1
July
Mullaney, Wells
776,066
Building, Moab, Utah.
Duriron
purposes.
(Wednesday)
Primary Metals Corp
(Blair
Brothers
$17,500,000
Supply Co
Common
(June 20
•
mon
$500,000
Corp.)
Lehman
stockholders—underwritten
The First Boston Corp.;
Gas Co
Securities
Allyn
Fuel
(Offering
*
Pioneer Natural
by
$5,1)58,300
Corp
Dillon & Co.)
July
Preferred
Co.
.Debentures
_
Weeks)
Merritt-Chapman & Scott Corp
.
(Thursday)
&
'
Arches
cent).
(Monday)
$20,000,000
Pioneer Finance Co.
Lerchen
&
June 29
White,
(Morgan Stanley & Co.) 325,000 shares
(Watling,
Inc.;
Preferred
and
*
June 16
Co.;
(Friday)
27
Cigar
(Eastman,
$2,040,000
Warner-Lambert Pharmaceutical Co....
-A:'?-..
June
Mountain
Corp.
Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capi¬
tal stock. Price—At par (one cent
per share).
Proceeds
—For mining expenses. Underwriter—Guss &
Mednick*
Price—$40
Common
Securities
&
Co., Inc., New York, who will acquire the stock at
per share.
shares
150,000
$8,000,000
Tennessee Gas Transmission
Webster
Hornblower
$3,500,000
EDT)
&
$4
dan, Wyo.
"
and
Consolidated
Co
stockholders—no
(Stone &
&
(Thursday)
Higginsen
Ctfs.
Debentures
a.m.
At
—
debentures
Common
stockholde-s—underwritten
to
Debentures
Water
Sulzberger
$1,500,000
Humphrey, Inc.; Stroud & Co.,
Company)
169,200 shares
Corp
(Offering
Common
Evans Products Co
New Haven
Hallowell,
Inc.)
$600,000
Hackensack Water Co
(par $1).
prevailing market price at time of public
Proceeds—For plant modernization and im¬
provement program. Underwriter—Mortimer B. Burnside
Price
amendment.
Common
Ohio
$8,700,000
Investing* Corp.)
Underwriter—None.
offering.
Common
(Lee
$300,000
Colorado Sports Racing Association
(General
J
Duraloy Co., Scottdale, Pa.
May 10 filed 60,000 shares of common stock
bentures due
Co., Inc.
Ionics, Inc.
.Common
Corp.)
through special
V
Evans Products Co.
A
$300,000
Chicago, Burlington & Quincy RR..Equip. Tr.
noon
$2,112,500
$209,400
Inc.;
&
June 23
$299,000
(Wednesday)
Investing
(Bids
Co.)
215,000 shares of stock
&
The
Common
Brothers!
Corp. (Utah)
(General
Mo.
(Wednesday)
June 24
All State Uranium
Common
$600,000
Vermilye
(Israel & Co.)
&
Brothers
Applesate
Debentures
Investing Corp.)
15
Debens.
$20,000,000
Wooster Rubber Co
$5,000,000
Western Nebraska Oil & Uranium
Co., Inc.__Com.
June
$15,000,000
Class
and
Debentures
Brothers)
Co.
Bonds
International Hardware Mfg.
200,000 shares
Co
Precision
or
it Duncan Mining Co., St. Louis, Mo.
May 16 (letter of notification) $243,000 of 10-year 5%.P
stock (par $1).
Price—$1.50 per share. Proceeds—For
mining expenses.
Office—720 Buder Bldg., St. Louis,
$6 cumulative
Debentures &
Standard Electrical Products Co
D.
Alstyne,
$300,000
Common
(General
EDT)
noon
June 22
Common
(Lehman
Creek
EDT)
a.m.
(Cohu
Co..
Brass
Common
shares
Vanadium Queen Uranium Corp
shares
(Tuesday)
Brothers)
and
11
(Bids
shares
Corp
(White, Weld & Co.
$1,500,000
120,222
Avien, Inc.
14
(Vickers
Corp..)
Co.)
Southern New England Telephone Co
Ramsay
&
Co.)
of
162,080
&
Oklahoma Gas & Electric Co
Common
(Allen
Higginson
(Courts
(Bids
Tenn.
(3.
(Lee
Debentures
Economy Auto Stores, Inc.-
Common
Co.;
L.
Exchange
basis."
Co., Inc
.
Boston
(Monday)
Cosmopolitan Life Insurance Co.
Silver
First
Co._
Scranton
and
The
245,000 shares
stockholders—underwritten
W.
Co.,
Stock
June
Duriron
by
York
March
(no par),
CALENDAR
Common
stockholders—underwritten
Corp. and Blyth & Co., Inc.)
New
June
Co., Inc.
••
(Friday)
Kansas City Power &
Light Co
(Offering
the
on
June
Desert Sun Uranium
of which 84,600 shares are issuable
upon exercise of cer-
NEW
tain options issued under the
company's Restricted Stock
Option Plan for key employees. The remaining 53,610
shares are owned by four officers and directors of the
company and may be offered by them from time to time-/
offerings.
Uranium, Inc.
43
Office—2054
Continued
on
page
50
50
(2682)
The Commercial and Financial Chronicle
jrom
Horton Aircraft Corp., Las Vegas,
49
page
April 26 filed 500,000 shares of
underwriting agreement will be made on behalf of this
company by Uni-Insurance Service Corp.
Fremont Uranium Corp.,
Denver, Colo.
April. 22- (letter of notification) 600,000 shares of com¬
stock
(par 10 cents). Price
Proceeds—For mining expenses.
mon
Oenver, Colo.
50 cents per share.
Office—235 Ivy St.,
Underwriter—L. A. Huey Co., same city.
ir General
Acceptance Corp., Allentown, Pa.
June 7 filed $6,000,000 of 5% subordinated debentures
due June 1, 1970. Price—To be supplied by. amendment.
Proceeds—To redeem
ated
debentures
15-year 5% convertible subordin¬
1967; balance to general working
due
funds of company and subsidiaries.
Underwriter—Paine,
Webber, Jackson & Curtis, Boston, Mass., and New York,
N. Y.
General
Dec.
of which 400,000 shares are to
Homes, Inc.
15 filed 300,000
and
expenses
Insurance
ing common stock and class B voting
share
of
Great
Atlantic
shares of State held
as
of record
rights
or
about
share.
plus.
to
expire
on
Proceeds—To
increase
on
for
21.
capital
three
each
June
about
or
June
stock on
common
Price—$3
and
paid-in
Office—Miami, Fla.—Underwriter—None.
7;
per
sur¬
Corp., Gallup, N. M.
April 4 (letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
•—For mining expenses. Office—First State Bank
Bldg.,
Gallup, N. M.—Underwriter—Coombs & Co., of Ogden,
mon
Utah.
..-yy.
.
Hackensack Water Co.,
Weehawken, N. J. (6/15)
May 18 filed $8,000,000 sinking fund debentures due
June
1, 1985. Proceeds—To refund 2lk% notes due Aug.
1, 1955, purchase securities of Spring Valley Water
Works & Supply Co., a
subsidiary, and the balance for
new
construction.
Underwriter
To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co, Inc.; Blyth & Co., Inc.; Dillon, Read & Co.
Inc.;
White, Weld & Co.; Drexel & Co. and Central Repubilc
—
Co. Inc.
(jointly); Kuhn, Loeb & Co. and W. C. Langley
Co. (jointly).
Bids—To be received up to 11 a.m.
(EDT) on June 15 at 15 Broad Street, New York, N. Y.
&
•
Hartford Gas Co.,
Hartford, Conn.
May 10 filed $1,500,000 of 3*4% 10-year convertible de¬
bentures due July 1, 1965,
being offered first to preferred
and common stockholders of record
May 6 at rate of $25
principal amount of debentures for each three shares of
stock held; rights to
expire on July 1. Price—At par.
Proceeds—To
repay
improvements.
•
bank
loans
and
for
additions
and
Underwriter—None.
Hartford Special
Machinery Co.
(letter of notification) 8,140 shares of common
stock being offered for
subscription by common stock¬
holders of record May 24 on a l-for-5
basis; rights to
expire on June 21. Price—At par ($20 per
share). Pro¬
ceeds—For working capital to finance
carrying of in¬
.
May 2
creased
Office—287 Homestead
Ave., Hart¬
Underwriters—None.
Hawk Lake Uranium
Corp.
April 12 filed 200,000 shares of common
cents). Price—$1.50 per share. Proceeds
etc.
expenses,
City, will act
•
Helio
Underwriter—Dobbs
agents. H
&
stock
(par 10
For
Co.,
mining I
New York
as
Illinois
Aircraft
Corp., Canton, Mass.
(letter of notification) 48,000 shares of com¬
Price—$6.25 per share.
Proceeds—To pay
off obligations, for
working capital, etc. Office—Metro¬
politan Airport, Canton (Norwood P. O.), Mass. Under¬
mon
stock.
writer—None.
To
be
handled
on
• Hertz Corp., Chicago, III. (6/24)
3 filed $5,058,300 convertible
subordinated deben¬
tures due July 1, 1970 to be
offered for subscription
by
June
stockholders
shares held.
ceeds
basis of $100 of debentures for each
15
Price—To be supplied
by amendment. Pro¬
on
For
working capital for expanded
Business—Automobile rental and truck
—
operations.
leasing.
writers
Lehman Brothers and Hornblower
both of New York.
*
—
^r Holmes (D. H.), Ltd., New
Orleans, La.
May 20 (letter of notification) 7.228 shares of
stock
(par $20)
to
be
first
offered
for
Under¬
&
Weeks,
subscription by
stockholders of record about June
7; rights to expire on
Price—$38.50 per share. Proceeds—To
acquire
The Dalton Co. of Baton
Rouge, La., and for general
corporate purposes.
Underwriters
Arnold & Crane*
Nusloch, Baudean & Smith; Scharff &
Jones, Inc.; and
—
&
Co.; all of New
Home-Stake Production
Co., Tulsa, Okla.
May 12 filed 60,000 shares of capital stock
1,000
,
debentures
(par
$100)
"ruts of 60 shares of stock
multiples thereof.
to
and
be
one
offered
$100
for
sale
debenture
in
or
Price—$400 per unit.
Proceeds—For
working capital. Underwriter—None. O. Strother
Simp¬
son, of Tulsa, Okla., is President.
450,030 snares or prior
(par $25) to be offered
stock
three-lor-one
block of
a
Deep Rock Oil Corp.
or
basis.
These
convertible
in
common
preferred
pre¬
exchange
snaies
for
stock on
are part*
674,880 shares owned by Deep Reck which
acquired by them on April 27, 1955.
Agen.s—rk
Gregory & Sons, Inc., and Sturo Bros. & Co., New York ■.
City, have agreed to solicit tenders.
★ Kim
Manganese Co., Buena Vista, Va.
(letter of notification) 300,000 shares of class AY
corpmon stock (par 10 cents) and 300,000 shares of class
Btjbmmon stock (par five cents) to be offered in units
May 31
ofjbne share for each class of stock. Price—$1
Prdceeds—For
mining
per unit.;Underwriter—None; -YY'
expenses.
Jtnapp Uranium & Development Co.
April 21 (letter of notification) 20,000,000 shares of
cojpmon stock. Price—At par (one cent per share). Pro¬
ceeds—For mining expenses.
Office—2174 S. Main St.,
t Lake City, Utah.
Underwriter — Guss & Mednick
shares of
common stock
(par $2).
share. Proceeds—To engage in insurance
Office—Champaign, 111. Underwriter—None.
per
Price—$5
•
shares
100.000
per
business.
of
common
share. Proceeds—To engage
(par $2).
^&l-a Sal Uranium Corp., Salt Lake City, Utah
May 11 (letter of notification) 2,850,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
in insurance
Office—Champaign, 111. Underwriter—None.
Illinois
P*»ceeds—For
Bell
1955,
the basis of
on
one
new
Petroleum
.
share for each six shares
mining
Office—209
expenses.
Bldg., Salt Lake City,
Amos C. Sudler & Co., Denver,
qg/'i; LeBlanc Medicine Co., Inc.,
Utah.
-
Phillips
Underwriter-
Colo.
Lafayette, La.
April 6 Tiled .1,000,000 shares of common stock (par 10
cdnts).
Priee-—$1 per share.
Proceeds—For purchase
land, plant,- warehouse, office building and equipment; and additional working capital. Business—Proc-
on June 30.
American Telephone
Telegraph Co., the parent, owns 99.32% of the pres¬
ently outstanding stock. Price—At par ($100 per.share).
&
Proceeds—For repayment of advances from parent com¬
pany.
;
city.
same
f>
stock
Telephone Co.
May 17 filed 663,469 shares of capital stock being of¬
fered for subscription by stockholders of record June
3,
Underwriter—None.
versing, packaging aricl merchandising of
proprietory
medicine, KARY-ON>x Underwriter—None. -'•yY.yYvY
Inca Uranium Corp., Salt Lake City, Utah
April 25 (letter of notification) 15,000,000 shares of
capital stock. Price—At par (one cent per share). Pro¬
y
-
new
-
^»4ife and Accident Insurance Co. of Alabama --i f;
Jurie 2 filed 750,000 shares of class B (nonvoting) comceeds—For mining expenses.
Office—1946 S. Main St.,
mqn stock (par SI). Price—$3 per share. Proceeds—To
Salt Lake City, Utah. Underwriter — Guss & Mednick : increase capital and surplus.
Office—Gadsden, Ala. Un¬
Co., Salt Lake City, and Moab, Utah.
derwriter — None, sales to be handled by Burlus Ran¬
dolph Winstead, Secretary and Treasurer of trie com¬
• Industrial Hardware
Mfg. Co., Inc. (6/22)
pany.
•,
•
May 12 (amendment) $1,500,000 of 5% debentures due j
1975 and 300,000 shares of common stock
&ittle Star Uranium Co;* Inc., Casper, Wyo.
(par 50 cents), £
.
of
which
filed
25
85,000 shares are to be sold to Seymour and
Offerman at $5 per share.
Price—To be supplied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Milton D. Blauner
5,000,000 shares of
stock
common
•
.
(par 10
f cei§s).
Bernard
Price—15 cents per share. Proceeds—To pur¬
chase machinery and equipment; for drilling and recon-
<
„
nafs&ance surveys; for acquisition of additional proper;
Co., Inc., New York; Hallowell, Sulzberger & Co., j ties*rand for working capital and other purposes. Under¬
Philadelphia; and Baruch Brothers & Co., Inc., New f writer—Peters, Writer & Christensen, Inc., Denver, Colo.
&
York.
Lone Star Uranium & Drilling Co., Inc.
Apjril 7 (letter of notification) 570,000 shares of common^
International Fidelity Insurance Co., Dallas, Tex.;
March 30 filed 110,000 shares of common stock
(no par),
stodk (par 10 cents).
Price—50 cents per share.
Proceeds—For mining expenses. Office—1100 Fidelity Union
}
Price—$6.50
holders.
per
share.
Proceeds—To
12
selling stock-
Underwriter—Name to be supplied by amend-
,
i". Life;'Bldg., Dallas, Tex.
tost
ir Ionics, Inc., Cambridge, Mass. (6/23)
filed 150,000 shares of common stock (par
$1). :
Price—To be supplied by amendment. Proceeds—To re-:
bank
loans
and
corporate purposes.
New York
Israel
Feb.
28
and
Electronics Corp.
debentures due June 1, 1975.
interest. Proceeds—To repay
(Pa.)
Jerrold
Electronics
(Pa.)
and
accrued
(6/20-24)
—
Co., New York; and Butcher &
Sherrerd, Philadelphia, Pa.
Kachina Uranium Corp., Reno, Nev.
May 12 (letter of notification) 600,000 shares of common;
stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—206 N.
Virginia St., Reno,
Underwriter—Whitney, Cranmer & Schulder, Inc.;
Denver, Colo.
Creek Uranium Corp.
April 1 (letter of notification) 6.000,000 shares of capital
Price—At par (five cents per share).
Proceeds
—For mining expenses.
Address—P. O. Box 528, Moab,
stock.
26
—
Mid-America
West Broadway,
Securities,
be
offered
for
Inc.
of
Salt Lake City. Utah.
Kansas City Power & Light Co. (6/10)
May 23 filed 245,000 shares of common stock
subscription by
common
of record June 9, 1955 on the basis of
each 10 shares held; rights to
expire
one
on
stockholders
new
share for
June 27,
1955.
Co., Inc.,
•
'
cent).
3,000,000 shares of
com-
Price—10 cents per share.
mining operations.
Office—Suite 1003,
Bank Bldg., Salt Lake City, Utah. Under-
'Continental
M &
M
same
city.
Oil
Co., San Francisco, Calif.
M&y 10 (letter of notification) 397,849 shares of capital
stqck (par 10 cents) being offered for subscription by
"stockholders of record May 27 on basis
foffYeach eight shares held (with an
of one
new
share
oversubscription
privilege); rights to expire on June 21. Price—50 cents
share.
Proceeds—To repay bank loans and for work¬
ing capital.
-
Office —155
Sansome
Underwriter—None.
St.,
San
Francisco,
•
"Magna Theatre Corp., New York
23 filed
122,300 shares of common stock (par five
cents), 6,000 outstanding warrants for the purchase of
'4|9,800 shares of
common stock
(as well
as
the
common
stock), and 6,000 outstanding units of "Oklahoma"
ticipation
certificates
(each
par¬
certificate
entitling
the
hdlder to receive 1/6,000th of 5/12ths of Magna's per¬
centage of profits due from the distribution of "Okla¬
homa."
Proceeds—To
present holders, including Kuhn,
California Theatres, Inc.; Harris,
Upham & Co.; Prudential Theatres, Inc.; Carl M. Loeb,
RhOades & Co.; Brown Brothers Harriman & Co.; and
&
Co.;
United
United Artists Theatre
Circuit, Inc.
Marine Midland Corp.,
Buffalo, N. Y.
May 17 filed 45,000 shares of common stock (par $5): to
-U^bffered in exchange for all issued and outstanding
capital stock
(no par)
Price—To be supplied by amendment.
Proceeds—To re¬
tire bank loans and for construction
program.
Under¬
writers—The First Boston Corp. and
Blyth &
both of New York.
one
Proceeds—For
Lrieb
Kane
Underwriter
per share.
Office—507 West Spruce
Underwriter—Carroll, Kirchner &
Uranium & Oil, Inc.
(letter of notification)
<m$n stock (par
J
May 19 filed 200,000 shares of common stock (par 10
cents). Price—$4 per share. Proceeds
For working
capital and general corporate purposes.
Underwriters
—Van Alstyne, Noel &
expenses.
w$ter—Havenor-Cayias, Inc.,
(6/20-24)
convertible subordinated
Price—100%
Corp.
Wyo.
Price —10 cents
cent).
one
'
$450,000 of 4% promissory
and for general corporate purposes and
working
capital.
Underwriters—Van Alstyne, Noel & Co., New
York; and Butcher & Sherrerd, Philadelphia, Pa.
Utah.
May 23
Offices
notes
Utah.
fAvJiitah
Plantations, Ltd.
24,900 shares of ordinary common stock
[ :
Israeli pound). Price—$10 per share. Proceed*!
Jerrold
(par
St|| Rawlins,
filed
Underwriter—None.
stock
Jaijuith, Inc., Denver, Colo.
Boston.
—Natanya, Israel, and New York. N. Y
Christopulos-
Creek Oil & Uranium Co.
PrjtfJfeeds—For mining
working capital and general^
Underwriter—Lee Higginson CorpJ
—For capital expenditures.
•
mon
for
Pecan
one
—
Midhch 25 (letter of notification) 2,995,000 shares of com¬
June 3
tire
Underwriter
-
Niehols Co., Las Vegas, Nev.
ment.
to
(par $5) and
tiled
;Y
were
Casualty Co.
100,000
filed
5
Nev.
common
June 24.
Howard, Weil, Labouisse, Friedrichs
Orleans, La.
of
Illinois American Fire Insurance Co.
May
•
private basis.
a
American
5 filed
May 19 filed $2,750,000 of 6%
March 31
6
15©,000 shares
a
shares.
(par
—
June
ferred
Industries, Inc.
Y
inventories.
ford, Conn.
.
ir Kerr-McGee Oil
held; rights to expire
Gulf Uranium & Development
—
None.
+ Idaho Power Co., Boise, Idaho
7 filed 15,000 shares of 4% cumulative
preferred
stock.
Price—At par ($100 per share).. Proceeds—For
additions to properties.
Underwriter—Wegener & Daly
Corp., Boise, Idaho, which has agreed to purchase 3,000
shares and has an option to purchase
up to 12,000 addi¬
Co.
May 18 filed 108,000 shares of common class A nonvoting stock (par $1.50) to be offered for subscription
by holders of State Fire & Casualty Co. class A non-vot¬
one
options
purchase three additional shares). Price—At par ($1
Proceeds
For working capital. Otfice —...
3623 Eastham
Drive, Culver City, Calif. Underwriter—
June
business.
of
year; (eacn purchaser of four shares to receive an
per snare).
derwriter—None.
tional
stocknolders; the remaining 121,810 shares to be.,
by options which may be exercised within a
to
;
• (F. C.THuyck & Sons
May 31 (letter of notification) 15,000 shares of common
stock (par $5) to be offered for subscription
by em¬
ployees. Price—$18.75 per share. Proceeds—For gen¬
eral corporate purposes.
Office—Rensselaer, N. Y. Un¬
Price—$5
basis
Underwriter—None.
covered
Co., Dallas, Texas.
ler & Co., New York.
•
incident thereto.
first to
Humble Sulphur Co., Houston, Texas
April 25 filed 500,000 shares of common stock (par 10).
Price—$1.20 per share. Proceeds—For exploration for
sulphur and related activities. Underwriter—Garrett &
May
Life
?
Kaye-Halbert Corp., Culver City, Calif.
tJf\
April 25 (letter of notification) 284,224 shares of com-^
mon
stock, of which 162,414 shares are being offered,*
stock (no par),
be offered for account of
company and 100,000 shares for account of William E.
Horton, President. Price—$1 per share. Proceeds—For
construction of model of "Horton
Wingless Aircraft"
shares of common stock (par $1)
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
Great Atlantic
Nev.
common
—
• Friden
Calculating Machine Co., Inc.
May 18 filed 108,400 shares of capital stock (par $1).
Price—Expected at $25 per share.
Proceeds—To sell¬
ing stockholders. Office — San Leandro, Calif. Under¬
writer—Dean Witter & Co., San Francisco, Calif. Offer¬
ing—Expected today (June 9).
Thursday, June 9, 1955
.
\
.
Continued
.
.
of The First National Bank of Falconer,
j;N;/Y., at rate of 30 shares of Marine stock for
First National held of record June 1.
will expire
on
Tr.e
one of
offer, which
June 24 (subject to 60 days extension), is
stbek
'subject to acceptance of not less than 80% of tne
oipTirst National.
^ jMa-ine Mid'and Corp., Buffalo, N. Y.
Jurie^2 filed
160.500 shares of common stock (p?r $5). to
t>esoffered in exchange for all of the issued and out-
"
Volume 181
Number 5436
The Commercial and Financial Chronicle
.
..
standing*capital stock of The Jamaica National Bank of
New -YcTk,, Jamaica, L.
I., N. Y. at rate-of 1.6-shares of
Marine Midland stock for each share ©£ Jamaica National
stock heid of record June 17.
ceptance
stock
'T-
of
not
than
less
(80,000
shares)
one
new
share, for each 16
New
[■
York.w"-.,.
Mueller Brass Co.
X.;;.C
7i:--•
iy aetter of .notification) 200,000 shares of common/), bentures"due Tune 1^1975.
stock
"
(par 35 cents). Price—75 cents per share. Proceeds
ties
mining
Underwriter—Standard
expenses.
Coip., Spokane, Wash.
amendment.
Securi^ »•
★ McAb Corp.
(letter of notification) $150,000 of 5% convertible
debentures due 1956 and 40,000 shares of class B common ?
stock
(par $1)
and
25
of
• Pelican Uranium Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
Price
stock.
$125
City, Utah
of common stock (par
claims
and
(par five cents). Price—10 cents per share. Pro¬
ceeds— For mining expenses.
Office —688 East 21st
South, Salt Lake City, Utah.
Underwriter — Trans-
one
for
Western
Brokerage
City, Utah.
Lake
unit,
proceeds—For deposit in special account for retirement
of debentures
($160,000) and for working capital.' Busi¬
—
,
stock
Proceeds—For payment on
exploration and other costs.
Underwriter—M. Raymond & Co., Inc., New York.
to be offered in units of $100 of deben¬
shares
Underwriter—
r
cent).; Price—$1 per share^
uranium
on
conditioned upon the acceptance of the offer by at
least 80% of the total number of shares of each
company.
to be acquired.
-Multi-Minerals Corp., Salt Lake
May 5 filfed 1,500,000 snares
dune 1
54-for-l
a
is
^
'•
tures
Proceeds—For; - expansion.
Lehman Brothers, New York...
on
51
basis; 546,000 shares for stock of
a 60-lor-l
basis; 100,000 shares
for stock of Alston Coal Co. on a 10-for-l
basis; and
81,161 shares for all of the pr operties of Sinclair Mines,
Inc. (other than shares, of any of the above seven companie^ owned by the Sinclair firm. The exchange offer
" '
(6/14)
co.
Broken Aro Coal Co.
May- 28 filed $5,000,000 of convertible subordinated de^
^
Price — To be suppled by
^eb.
—For
»Coal
held; rights to expire on July 18. Price—To be
supplied, by •.amendment. L Proceeds—To -finance, expan¬
sion program. Underwriter — The First Boston Corp.,
the
of
of Jamaica National.
Mascot Mines, Inc., ftellogg,
•
about Xuhh *28- 00 the basis of
shares
u
The offer is suojecc to ac*
80%
(2683)
per
^ Nassau-City Realty Co.
June 2
(leugr oi nouiieauon) 3GO,0OO shares of com¬
mon stock.
Price—At par ($1 per share)v Proceeds—To
ness—General advertising and public relation;
consulting
business. Office—41" East 50th Street, New York,
N.^" iJ acquire mortgages on income producing properties, etc.
Office—5 Beekman Street, New York 38, N. Y.
Underwriter—None.
'
Underwriter-^-Nassau-Shares Sales Corp., same address.
Mcintosh Laboratory, Inc.
May 3 (letter of notification) 1,000 shares of comro®®^ ^ National Credit Corp., Phoenix, Ariz.
Stock (par $10). Price—$18.50
per share. Proceeds—FprMay 6 filed 300,000 shares of common stock (par $1).
working capital.
Office- 320 Water St., Binghamt§pj j: Price—$3 per share.
Proceeds—For working capital.
Co.,
New
Orleans,
La.,
Salt
and
Penn-Central Oil Co., Kansas City, Kan.
May 16 (letter of notification) 15,000 shares of common
stock. Price—At par ($5 per share). Proceeds—For con¬
struction of new plant and other corporate
purposes.
Office—20th and Kansas, Kansas City, Kan. Underwriter
•
—None.
■/» '
'
'''"i'"
-
N. Y. Underwriter—None.
Penn-Dixie Cement Corp.
-
Underwriter—None.
,
★ McLean Securities Corp.
148,000 units, each to consist of
jiuSsJ*
supplied sby*
^Network Manufacturing Corp., Bayonne, N. J.
May 31 (letter of notification) 50,100 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—
For new machinery, automation and
working capital.
Proceeds—To pay off bark loan which fche-
Business—Manufactures switches for electrical and elec¬
June 8 files
one shareaof /
$3 cumulative preferred and between one-half and cme*
share
of
Price
stock.
common
amendment.
To
—
be
company recently secured in connection with its puarM
chase of approximately 99.5% of the
outstanding cajitali
stock of the Waterman Steamship
Corp.
White, Weld & Co.
Underwriter—None.
Underwriter^;
1,
,
,
tronic use?-: Office-r^-213
New Bristol Oils.,
sRWi ' April 11
fi|ed 2,400,000
/
ir Mechanics Finance Co., Jersey City, N.
May 31 (letter of notification) $250,000 of 8%
bonds dated July 10, 1955, and due
July 10,
5,000 shares of 8% cumulat've preferred stock
*
West 5th Street, Bayonne, N. J.
-
J. :v.
Ltd., Toronto, Canada
shares of common stock (par $1),
£,£00,000 shares were issued to Newton-Conroe
Corp. ^nd/8p0,000 shares to The Phoenix-Campbell
of which
debenture*
Oil
1970, sad#
Corp., in
exchange
for properties. Newton-Conroe is dis-
(par $16&*tributmg: ifs stock to its stockholders in a liquidation.
Price—At par. Proceeds—For working capi'al. OfficerA-'1^
™
As holder of 51% of the Newton-Conroe stock, Phoenix586 Newark Avenue,
Jersey City, N. J. Underwrite®*^?:. Campbell will receive about 800,000 shares which it pro¬
None.
'.aapai: poses to off
e£ T6 the public, together with the 800,000
MecMirg
(A.
L.)
Barge
Lines,
irg offered in exchange
and" issued
of $234
per share.
exchange
offer
will
hv
>
Me^adrin
Anril
Price—$m.75
at
not
less
31 %
Statement effective
Inc.,
70.000 shares of
share.
of
the
New
Metals, Inc., Steamboat Springs, Colo.
1,500,000 shares of com¬
April 2,9 (Ipffpr of notification)
s^cds^-jPrice—At
mon
—gpnr
boat
517
York
stock
un¬
(par $1QVT
(10 cents per share). Proceeds
par
nrupjng operations.
Spring Colo.
Office—414
Underwriter
Oak
St.,
Steam¬
Justice B. Detwiler,
Empire .Bldg., 430 16th St., Denver, Colo.
New-Haven
\
(6/15)
Co.
Water
—
Proceeds—For
acquisition S? May ITifited 40jQ00 shares of capital stock (par $50) to
capital and other £eq~y. be offer®eMfor subscription by stockholders of record
corporate purposes.
Business—Production and
June^L5, 1955 on basis of two new shares for each seven
of citrus fruits in State of Israel: also
plans to grow supJJ shares "held. Price—$51 per share. Proceeds—To repay
trordcal fruits.
Underwriter—None.
:f"-: ^
^
bapk Ibdfiis and for new construction. Office —
additional
per
groves
and
working
eral
sajej
^
Nejy
* Menitt-Chapman & Scott Corp.
7^ H9ven,
'
16/29)
June 3 filed
$25,000,000 convertible subordinated deb^»~ j
tures due July
1, 1975. Price—To be supplied by
ment.
Proceeds—To refinance certain bank loans and-vterm debt of
company and its subsidiaries; and for geq-^
eral corporate purposes.- Underwritre—A. C.
amend¬
Conn. Underwriter—None.
^ New YSrk Civic Opera Co., Inc.
June*ar(ietter- of notification) 40,000 shares of
•
Midwestern United Life
fered
on
Fort
Avenue, New York 17, N. Y.
f
stock
to
'ssl
^eimT^Ubiniiii^
Millsap Oil & Gas Co., Siloam Springs, Ark.
17 (letter of notification) 599,200 shares of
common
stock (par 10 cents). Price
50 cents per
sh^re
■
—
St., Siloam
ment Co..
Springs
$
Ark.
Main
"
Wilmington, Del.
King, Inc.
April 4 (letter of notification) 10,000,000 shares
stock.
Price—At
j*°hn Fox
holder.. U
Underwriter—Dewitt Inverts V fnan, Dilloj
Office—518
<
co$-
of
Gas
Co.,
Port Allegapy,
Boston, Mass., who is the selling stock-
rwriter—To be named later (may be East& Co. and Allen & Co., both of New York).
(one
cent per share).
Prp- j ing opefatihns. Address — P. O. Box 548, Moab,
Office—210 Zions Savings v tinder write*—Clifford A. Greenman, 324 Beason
City, Utah. Underwriter
Salt Lake City, Utah.
par
Building,
Salt
Potter Investment
-
Moab
March
28
city.
May
(letter
of
notification)
Price—At
30,000.000
Utah,
Bldg.,
Price—At
ceeds—For
Salt Lake
same
mining
cents
per
Office—716
Underwriter
—
Newhouse
Moab
28
Pro¬
Bldg.,
capita] ctock.
*
Salt Lake City, Utah
15,000,000 shares *
par
(one cent per share).
"
Ft
•
mining operations. Office—430 Judge Bldgi
Salt Lake City, Utah.
Underwriter—Ned J. Bowman Co.,
same
city.
\
^
r
Morrell
number
(John)
&
Co., Ottumwa, Iowa
(letter of notification)
°f Pu
J ?
u
payment.
Underwriter
to
8
filed
198,990
(6/29)
shares of capital stock (par $10)
be cflered for subscription
by stockholders of record
St., New York 15, N. Y.
10.
Price—$27.75
June
2
the
at
rate
of
lege); rights to expire
additional
one
for each ten shares held
(with
on
share
of
stock
oversubscription privi¬
June 24. Price—$140 per share.
an
Proceeds—To repay bank loans, acquire additional stock
of
Peoples Production Co. and for general corporate
Office—Chicago, 111. Underwriter—None.
pur¬
poses.
^ Pepsi-Cola General Bottlers, Inc., Chicago, III.
3 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
tire bank loans and for expansion program.
Under¬
writers—Straus, Blosser & McDowell ana Link, Gorman,
Peck & Co., both of Chicago, 111.
June
Bankers, Inc.,
I Washington, D. C.
May 23 filed 60,000 shares of $1.40 prior preferred stock
($18 stated value) and 60,000 shares of common stock
(par 10 cents) to be offered in units of one share of each
class of stock.' Price
To be supplied by amendment.
Proceeds—For working capital to be used primarily to
increase receivables or for the acquisition of
additional
assets from others, or both.
Underwriter — Johnston,
—
Lemon &
•
Co., Washington, D. C.
Pioneer
V
Finance
Co., Detroit, Mich. (6/16)
j
May 26 filed 50,000 shares of 5V2% convertible preferred,
stock.
Price—At par'"($10 per share).
Proceeds—To¬
gether with funds to be received from sale of not
exceeding $400,000 of subordinated debentures, to be
used
for
working capital.
Underwriters — Watling,
Lerchen
& Co., Detroit, Mich.; and Mullaney, Wells &
Co., Chicago, 111.
Pioneer
Mortgage & Development Corp.
16
Inc.
(letter of notification) $243,000 of 10-year 5%
Price—$100
Proceeds
Office
Bank
>
—
For
working
Bldg., Hazleton, Pa.
capital.
—
per
506
unit.
Markle
Underwriter—Nope.
be offered in exchange as
Sentry Rovalty Co. on
a
147-for-l basis; 216,000
/shares of stock of Power Coal Co.
3,565,000
on
an
on
a
18-for-l
shares for stock of Homestead Coal Co.
i 713-for-l basis; 794,200 shares for stock
jCo.
common stock (par $1),
entitling the holder to purchase
share at prices ranging
from
$13
to
$20
depending upon the exercise date.
"as
Price—$10 per share
Proceeds—For working capital and
speculation."
a
Office—Houston, Tex.
general corporate purposes.
Un¬
derwriter—None.
Gas
Co., Amarillo, Texas
May 26 filed 776,066 shares of
Price—To
be
•
common
supplied by amendment.
certain
selling stockholders.
Corp., New York.
rities
Primary Minerals Corp.
(6/16^
(no par).
Proceeds — To
stock
Underwriter—Union Secu¬
(7/8)
May 24 filed 1,400,000 shares of common stock
(par one
cent). Price—50 cents per share. Proceeds—For acquisi¬
tion of mining equipment and other mining expenses.
Office
Ssn
Francisco, Calif.
Underwriter — General
—
Investing Corp., New York.
Prudential Discount Corp., Dallas, Tex.
May 9 (letter of notification) 17,904 shares of 7% cumu¬
lative preferred stock (no par) and 17,904 shares of com¬
mon stock
(par one cent) to be offered in units of one
share of each class of stock.
Price—$10.01 per unit.
Proceeds—To purchase outstanding voting common stock
of
General
Finance
Co.
of
City Bldg., Dallas, Texas.
Texas.
Office—943 National
Underwriter—None.
ir Public Finance Services, Inc.
(letter of notification)
May 16
tive debentures,
$300,000 of 6%
cumula¬
1955 series. Price—At par (in denomi¬
Proceeds — For working capital.-
nation of $100 each).
Office
—
18
Chelton
West
Ave.,
Philadelphia
44, Pa.
•
Public
Service
Co.
of
Colorado *
May 13 filed 303,010 shares of common stock (par $10),
of which 275,464 shares are being offered for subscrip¬
tion
by common stockholders of record June 3 on the
one new share for each 10 shares held; rights to
expire on June 20.
The remaining 27,546 shares are be¬
basis of
$38.50
(par $5)
follows: 578.739 shares for
stock of
additional
ing offered for sale to officers and employees.
ic Peabody Coal Co.r Chicago, III.
June 6 filed 6,492,164 shares of common stock
:
one
Underwriter—None.
debentures and 20 shares of stock.
^
TreS i'-n ^xc^an§e *or a
Mountain Fuel Supply Co.
June
May
' ■•'4
Felin Co., Inc., plus a cash
None.
on
Bids—Expected to be received up to 11
June 21 at The Chase Manhattan Bank,
| subordinated debentures and 54,000 shares of common
jstock (par 10 cents) to be offered in units of $90 of
16,000 shares of capital
of shares of. John J.
(EDT)
Broad
15
n*rsy
ceeds—For
March 31
— To repay bank loans and for
Underwriter — To be determined by
Paramount Finance Co.,
notification)
Price—At
a.m.
J
>1
Uranium Co.,
of
Barney & Co.
Broke(ag3
'
(letter
1 '
>
com¬
share).
city.
Monarch
March
costs.
City, Utah.
(10
par
Proceeds
Co.
Underwriter—Guss & Mednick, Salt Lake
^
stock.
19$5.
construction.
competitive bidding. Probable bidders: Halsey, Stuart &
Inc.; ^Equitable Securities Corp.; Merrill Lynch,
Pierce, Feriner & Beane and White, Weld & Co. (jointly);
Lehman Brothers and Blyth & Co., Inc. (jointly): The
First Boston Corp.; Kuhn, Loeb & Co.; Harriman Ripley
& Co. Inc. and Union Securities Corp. (jointly); Smith,
—
Utah.
^ Mc?b
Valley Uranium Co.
May 16 (letter of notification) 2,000,000 shares of
Co.,
new
Pro¬
(6/21)
f^ed $15,000,000 of first mortgage bonds due
23
June 1,
shares
par
City. Utah.
mon
Oklahoma Gas & Electric Co.
.7.^
(one cent per share).
For mining exnenses.
Office
Archer
—
Moab.
same
Minerals, Inc., Moab, Utah
capital stock.
ceeds
Lake
Co.,
capital.
Pioneer Natural
oeeds—For mining expenses.
Bank
June
repay
•
Peoples Gas Light & Coke Co.
May 9 filed 111,836 shares of capital stock (par $100)
being offered for subscription by stockholders of record
Pa.
it North standard Mining Co., Moab, Utah
May 13*-(leiter of notification) 400,000 shares of common
stock. Pri$|—Five cents per share. Proceeds—For min-
Moab
mon
common
"April 29 filj^d .419,000 shares of capital stock (par $5).
Price—To^e supplied - by amendment. Proceeds—To
'
March
activities.
on
bank loans and for
Underwriter—Dominick & Dominick,
with warrants attached
^^notification) 8,000,000 shares of
be -of— -
North TOnn
gas
To
—
April 27 filed 300,000 shares of
Development Corp.
subscription bv stockholders of record June i
par (three cents per share).
Proceeds
basis.
Price—$2 per shared Proceed^r?Office—El Rancho Hotel, Gallup,
capital and surplus.
Office—229 West Berry
SL;
N5M. JM^writer^ Rocky Mountain Securities, Salt
Wayne, Ind. Underwriter—None. Statement with-^TSake
and
working
Proceeds
New York.
Under-
l-for-4
Proceeds—For oil
held; rights to expire
share.
per
..
drawn-
1
common
working
for
a
For
common
Proceeds—For
capital;-^BaHdness^-To produce touring operatic programs,
•
Insurance Co.
May 25 filed 75,000 shares of
share.
per
Allyn ,&•
Co., Inc., Chicago and New York.
shares
Personal Industrial
New Era
May 11.
common
Price—
Under¬
dertaken/to rifafkfet their holdings directly.
:
of ffie7
MariHSf^
acceptance
upon
than
from New Bristol Oils.
selling stockholder.
Proceeds—To
writer—fctlne^the distributing stockholders having
-"
rate
a total purch^Se
is to be oaid in cash. TtriF
contingent
of
Plantations,
28 filed
Co.
markefT
At
authorized s:
Marine Transit
share
per
be
holder*
of
The balance of $1 of
offw -nrirp of $235
Transit shares.
certificates!^ ;•
for the 3,578 shares of
stock
common
rpcmved^irectly
shares
flf^'
Inc., Joliet,
March 31 filed $837,252 of instalment note
May 6 filed 361,282 shares of capital stock (par $1)T
being offered for subscription by stockholders of record
May 25 on the basis of one new share for each six
basis;
on
a
of Sinclair Coal
44-for-l basis; 611,064 share's for stock of Key
per
share.
Price—
Proceeds—For construction program.
Underwriters—The
Inc.
and
First Boston
Corp., Blyth &
Smith, Barney & Co., all of New York.
• Purity Stores,
June
7
filed
Price—To be
Co.,
Ltd., San Francisco, Calif.
100,000 shares of common stock
(par $1).
supplied by amendment. Proceeds—To sell-
Continued
on
page
52
32
The Commercial and Financial Chronicle
(2684)
Continued
from
capital.
ing
51
page
Francisco, Calif. Underwriter
Whittall, Ltd., Vancouver, B. C., Canada.
Underwriter—A. G. Becker & Co. Inc.,
A A'
,■ V
ing stockholders.
.Chicago, 111.
.
•
Pyramid Electric Co. (ft/20-24)
May 3 filed 75,000 shares of 5% cumulative convertible
preferred stock. Price—At par ($10 per share). Pro¬
ceeds—For new facilities, equipment and machinery and
working capital. Underwriter—S. D. Fuller & Co., New
York.
Southeastern Public Service Co.
May 20 filed
eight shares held.
ment.
cluding
•
New York.
E. & R. Discount Corp., N. Y.
(letter of notification) 20,000 shares of class A
stock.
Price—At par
($10 per share).
Proceeds—For
2
Office—360 Delaware Avenue, Buffalo,
working capital.
Underwriter—None.
N. Y.
Oil & Uranium Co., Denver, Colo.
May 27 (letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents par share.
Proceeds—For
mining operations.
Office—636 South
Broadway, Denver, Colo. Underwriter—Lester Gould &
it Rebel
'
Co., Inc., same city..
Revere
Realty, Inc., Cincinnati, Ohio
March 8 filed $1,000,000 of 5V2% cumulative convertible
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—/Par for debentures and $100 per
share for stock. Proceeds — To purchase real estate or
Interest therein. Underwriter—Stanley Cooper Co., Inc.,
Cincinnati, O.
it Reynolds
Uranium
Corp.,
York
New
May 16 (letter of notification) 5,000 shares of common
stock (par $1), Price — $10 per share. Proceeds — To
Luckhurst, President, and Leonard Rosin,
stockholders. Office—27 William St.,
York, N. Y. Underwriter—Luckhurst & Co., Inc.,
J.
Douglas
who
are
New
the selling
city/.
same
Ritter Finance
Co., Inc., Syncote, Pa.
24 filed 4,000 shares of 5V2% cumulative preferred
Feb.
(par $50) and 40,000 shares of class
(par $1) to be offered in units of one
stock, third series
B
stock
common
preferred share and
10 class B shares.
Price—$75 per
Proceeds—To reduce bank loans and for working
unit.
capital. Underwriter—None. Statement effective Mar. 31.
it Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents).
Price—At market (total not to
exceed
Proceeds—For working capital. Office
$150,000).
—Walker Bank Bldg., Salt Lake
—Whitney & Co.,
City, Utah. Underwriter
city.
same
Saint Anne's Oil Production Co.
May 9
stock
(letter of notification) 20,000 shares of common
Price
(par $1) to be first offered to stockholders.
—$6.25 per share. Proceeds — For oil and mineral and
related activities. Office—Northwood, Iowa. Underwriter
—None.
Regis Paper Co.
debentures
Inc.
it Santa Fe Uranium & Oil Co.,
May 26 (letter of notification) 2,959,500 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.
Proceeds—For mining operations. Office—416 Indepen¬
dence
Bldg., Colorado Springs, Colo.
Co., Denver, Colo.
Underwriter—Co¬
lumbia Securities
Ltd., Toronto, Canada
April 29 filed 1,500,000 shares of common stock (par $1).
Price—40 cents per share.
Proceeds—For exploration
and working capital: also to repay advances and other
liabilities.
Underwriter
Degaetano Securities Corp.,
—
York.
New
Shoni Uranium Corp., Riverton, Wyo.
April 21 (letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds
For
—
Wyo.
Denver, Colo.
Riverton,
mining expenses. Address — Box 489,
Underwriter — Melvin F. Schroeder,
cents
per
share).
Proceeds
President and Treasurer.
To
—
Michael
L.
Kaplan,
Business—Electronic products.
Underwriter—None.
•
Silver
March
31
Creek
filed
Precision Corp.
(6/14)
$600,000 of 10-year convertible
bentures due June 30, 1965.
amount
For
(in
denominations
working
of
stock
pire
To
held
retire
tion.
de¬
Price—At 100% of principal
of $100 each).
Proceeds—
vesting Corp., New York.
Sonoma
April
27
Quicksilver Mines, Inc.
filed
800,000
shares
cents), of which 80,000 shares
to
public.
value
which
at
Price—To be fixed
the
ever
is
time
of
lower.
and invest in other
capital
stock (par 10
to be initially offered
the basis of the market
are
on
first
Purpose
—
sale
To
or
$1
per
share,
increase facilities
quicksilver properties; and for work¬
\
3
-
their
of
$5 of debentures for each share
of record May 17, 1955; rights to ex¬
as
Price—At principal amount.
June 14.
on
of
short term
bank
loans
and for
Proceeds—
new
construc¬
Underwriter—None.
Southern New England Telephone Co.
(6/21)
May 26 filed $20,000,000 of 34-year debentures due June
I, 1989. Proceeds — To repay some $12,800,000 of ad¬
from American
vances
for
construction
Telephone & Telegraph Co. and
Underwriter—To
program.
be
deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Lehman Brothers and Salomon Bros.
Hutzler
(jointly); Kuhn, Loeb & Co.; The First Bos¬
Corp.; Merrill Lynch, Pierce, Fenner & Beane;
White, Weld & Co. and Kidder, Peabody & Co. (jointly);
Morgan Stanley & Co.
Bids—To be received up to
.
Thursday, June 9, 1953
May
26
(6/15)
filed
200,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds
To redeem outstanding 100,000 shares of
preferred stock, to repay bank loans and for ex¬
pansion program. Underwriters—Stone & Webster Secu¬
—
5.85%
rities
Corp., and White, Weld & Co.
\-
Texboard, Inc., Dallas, Texas ( ,-Y*AYti' •-i
Jan. 17 filed $1,500,000 of 6% series A debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
of 6% series B convertible debentures due serially from
Feb. 1, 1962 to Aug. 1, 1966. Price—To be supplied by
Proceds—To construct and operate a manu¬
amendment.
facturing /plant near Orange, Tex., for the purpose of
manufacturing insulation building products.
Under¬
writer—Emerson Cook Co., Palm Beach, Fla.
Inc., Mansfield, Ohio
shares of common stock (par $1).
Price—To be
supplied by amendment.
Proceeds—To
selling stockholders.
Underwriter — McDonald & Co.,
Cleveland, Ohio.
it Therm-O-Disc,
June
filed
7
89,600
Tip Top Uranium & Oil, Inc., Denver, Colo.
(letter of notification) 30,000,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining expenses.
Office—1122 Mile High
Center, Denver 2, Colo. Underwriter—Robert W. Wil¬
son, 1717 East Colfax Ave., Denver, Colo.
Feb. 1
ton
(EDT)
noon
New
June 21
on
at Room 2315,
195 Broadway,
York, N. Y.
Sovereign Uranium Gas & Oil Co.
May 13 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For
mining expenses. Office—704 Equitable
Denver, Colo.
Underwriter—Daggett Securities,
Bldg.,
Inc., Newark,
N. J:
Stancan Uranium Corp., Toronto,
Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie & Co., Inc., both of New York.
•
Standard
it Transcontinental
June
filed
1
Electrical
Products
Co.
(6/14)
Pipe
Gas
Line Corp.
of Participations
$2,625,000
the
in
Thrift
for
Plan
Employees of this corporation, together with
shares of common stock (par 50 cents), 50.000
91,305
shares
it Southwestern Petroleum Corp.
May 13 (letter of notification) 59,999 shares of common
stock (par 50 cents). Price—$5 per share. Proceeds—For
expenses and
working capital.
Address—c/o G & T
Drilling Co., P. O. Box 67, Muenster, Tex. Underwriter
—None.
A •'"'A; A- Ar-v/A/vA' /AAA
of
value
$2.55 cumulative
preferred
($50 stated
stock
and 26,250 shares of $4.50 cumulative
share)
per
preferred stock ($100 stated value per share). Proceeds
—To purchase shares necessary for operation of plan.
No proceeds
to company.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At.par (50 cents per share). Proceeds—
For
mining operations. Office
City, Utah. Underwriter
Washington, D. C.
—
Lake
—
506 Judge Bldg., Salt
Lewellen-Bybee Co.,
it Trusteed Funds, Inc., Boston, Mass.
2 filed (by amendment) 700 additional Common¬
June
wealth
Indentures
Fund
of
Trust
C
Plan
and
700,000
Units, and $100,000 in Plan C payments and
100,000 Theoretical Units.
Theoretical
Uranium
Turner
Corp.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par 2V2 cents). Price—10 cents per share.
Proceeds
For mining operations.
Office — 130 Social
April 1
—
Underwriter—Mel¬
149,500 shares of com¬
mon stock (par 25 cents).
Price—$2 per share. Proceeds
—For working capital. Underwriters—S. D. Fuller & Co.
Hall Avenue,
and
(letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
May 23
(letter of
notification)
Vermilye Brothers, both of New York.
Standard Mercury Corp., Winnemucca, Nev.
April 25 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent). Price — 20 cents per share.
Proceeds—For general corporate purposes. Office—Suite
7, Professional Bldg., Winnemucca, Nev. Underwriter—
E. I.
Shelley Co., Denver, Colo.
it Star Uranium Co., Watertown, S. Dak.
May 16 (letter of notification) 300 shares of capital stock.
Proceeds—For mining ex¬
Underwriter—Maurice Spolum, Watertown, S. D.
•
($100
per
share).
Stewart Oil & Gas Co.
shares of common stock (par 100).
Price—$1 per share. Proceeds—To repay bank loan, and
for development of properties and other activities inci¬
dent to oil and gas operations. Office — San Angelo,
Texas. Underwriter—Barrett Herrick & Co., Inc., New
Two Jay Uranium
Stylon Corp., Milford, Mass.
May 10 filed 390,000 shares of common stock (par $1)
being offered in exchange for $1,950,000 of City of Flor¬
Ala., first mortgage industrial development reve¬
fund bonds.
Underwriter—None.
Sun
Hotel, Inc., Las Vegas, Nev.
Feb. 16 filed 760,000 shares of pfd. capital stk. (par $9.50)
and 1,540,000 shares of common capital stock (par 25
cents), of which 680,000 shares of preferred and 1,360,000
shares are to be offered in units of one preferred and
two common shares; the remaining 80,000 shares of pre¬
ferred stock and 180,000 shares of common stock may
be exchanged for properties. Price—$10 per unit. Pro¬
ceeds—To purchase property; for construction of hotel;
and for working capital.
Underwriter—Coombs & Co.,
Salt Lake City, Utah.
Nov.
18
Park
filed
Racing Association, Inc. (Fla.)
$700,000 of 6% convertible sinking fund
City,
Place,
Salt
States
Investment
Lake
Utah.
Underwriter
—
Western
Co., Tulsa, Okla.
U-Kan Uranium & Oil Co., Salt
Lake City, Utah"
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For
mining expenses. Office — Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
U-Neva Uranium
April
29
common
—For
Corp., Salt Lake City, Utah
notification) 15,000,000 shares of"
stock. Price—At par (par two cents). Proceed**
of
(letter
Office—954 East First South St.,»
Underwriter—Columbia Securities
Co., Denver, Colo., and Salt Lake City, Utah.
mining
expenses.
Salt Lake City, Utah.
Union Club,
•
Co., Salt Lake City, Utah
May 16
York.
nue
Salt Lake City, Utah.
Co., same city.
;
vin G. Flegal &
v
(6/20-24)
March 14 filed 750,000
Inc., Hollywood, Calif.
March 1 filed
30,000 shares of preferred stock (par $50) >
100,000 shares of common stock (par $10) to be^
offered in units of three »■ preferred and
10 common
shares. Price—$400 per unit. Proceeds—For purchase of"
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales,
and
will be made through agents.
Union Uranium Co., Denver, Colo.
March 2 (letter
mon
—For
of notification) 10,650,000 shares of com¬
Proceeds
Price—At par (one cent per share).
stock.
Office — 230 East 19th Ave.,
Underwriter—J. W. Hicks & Co., same
mining operations.
Denver, Colo.
city.
United Gas Corp.
May 17 filed 525,036 shares of common stock (par $10)
to be offered by Electric Bond & Share Co. for subscrip¬
tion by its common stockholders of record about June 8
on
the
debentures due 1966 and 70,000 shares of common stock
each
(par 10 cents).
basis of
expire
new
one
share of United
stock for
Gas
rights to
shares of Bond and Share stock held;
10
debentures
be named later. Pro¬
ceeds—To Electric Bond & Share Co., who is the sell¬
repay
ing stockholder.
Price
—
100%
and accrued interest for
and $2 per share for stock.
Proceeds—To
bank loans, for new construction and for working
capital. Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.
Tasha Oil & Uranium
6%
capital and general corporate purposes.
Creek, N. Y. Underwriter—General In¬
Office—Silver
A
July
basis
Sunshine
Sightmaster Corp., New Rochelle, N. Y.
April 19 (letter of notification) 165,000 shares of com¬
mon stock (par five cents).
Price—At market (about 30
,
maximum of $40,950,600 of convertible
a
due
the
on
ence,
Mines
Uranium
Saxon
To be supplied by amend¬
15, 1970, being offered for sub¬
scription by holders of original preferred and common
penses.
May 12 filed 369,999 shares of common stock (par $5)
being offered in exchange for common stock of Pollock
Paper Co., on the basis of 8.8095 shares of St. Regis
stock for one share of Pollock stock of which 42,000
shares are outstanding. This offer, which is subject to
deposit of 80% of Pollock stock, will expire on June 13.
—
Co., Philadelphia, Pa.
Price—Par
St.
(par 10"
general corporate purposes, in¬
in
subsidiaries.
Underwriter —
investments
April 19 filed
&
Mining Co., Glenwood Springs, Colo.
May 17 (letter of notification) 234,000 snares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—701 Grand Ave., Glenwood Springs, Colo. Underwriter—None,
it Revelation
stock
Southern California Edison Co.
stock
it R.
June
Price
Proceeds—For
Bioren &
Pyramid Electric Co. (6/20-24)
May 3 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Underwriter — S. D. Fuller & Co.,
100,000^shares of common
cents) to be offered for subscription by stockholders of
record June 8 on the basis of one new share for each
.
Tennessee Gas Transmission Co.
Office—San
—Norman R.
.
Co., Denver, Colo.
(letter of notification) 6,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.
on
July
1.
Price
—
To
Underwriter—None.
it United Telephone Co. of Pennsylvania
June 7 filed 15,000 shares of 4J/2% cumulative preferred
May 11
stock,
mon
amendment.
series
A (par $100). Price—To be supplied by
Proceeds—Together with proceeds from
Proceeds—For
issuance
St., Denver,
Utilities, Inc., its parent, to be used for payment of bank
loans and advances owing to parent; and for general
mining operations. Office—1890 S. Pearl
Colo. Underwriter — Carroll, Kirchner &
Jaquith, Inc., same city.
corporate
of
20,000
shares
of
common
to United
stock
Office—Harrisburg^
Pa.
Tekoil Corp., Robinson, III. (6/20-24)
May 31 filed 280,000 shares of common stock (par $1).
Price—To be supplied by amendement.
Proceeds—To
retire
Under¬
writer—Kidder, Peabody & Co., New York.
May 11
liabilities
assumed
in connection
with
acquisition
of present properties; to retire short-term bank loan; for
payment on properties acquired from G. S. Hammonds;
and
for
general corporate
purposes.
pler, Guerin & Turner, Dallas, Texas.
Underwriter—Ep-
purposes.
Uranium & Minerals, Inc., Winnemucca,
mon
—For
mining expenses. Office—Professional
nemucca,
Nev.
Nev.
(letter of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
Nev.
Underwriter
—
Bldg., Win¬
Stocks, Inc., Las Vegas,
Number 5436
Volume 181
The Commercial and Financial Chronicle
...
(2685)
Uranium Prince Mining Co., Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of com¬
mon stock.
Price
10 cents per share. Proceeds—For
mining operations. Address — Box 709, Wallace, Ida.
for
making any additional borrowings. Underwriters—
Goldman, Sachs & Co. and Lehman
Brothers, both of
New
—
Underwriter—Wallace Brokerage Co.,
i *
;
•v'4
* *
i
■
.
1
j
,<
city.
same
*
1
,
<if Vactron Corp.
f-May
13
(letter of notification)
stock.
vmon
of
com-
Price—At par
^-manufacture,
($1 per share). Proceeds—To
rebulid and market television pic-
process,
Uures tubes, etc. Underwriter
Fort Worth, Texas.
•
300,000 shares
Zone Investments Co.,
—
Vanadium Queen Uranium Corp.
April
(6/21)
845,000 shares of capital stock
filed
18
(par 10
for the account of sell^ing stockholders and 775,000 shares for the company's
^account. Price—$2.50 per share. Proceeds — To repay
notes and for exploration and development expenses.
Office
Grand Junction, Colo. Underwrtier—Van Al\ctyne, Noel & Co., New York.
r
cents), of which 70,000 shares
are
—
York.
American
Telephone & Telegraph Co.
April 20 stockholders approved a new issue of not to
exceed $650,000,000 convertible debentures.
When is¬
sued, each stockholder would receive rights to purchase
the debentures in proportion to his holdings of stock
(probably on the basis of $100 of debentures for each
eight shares of stock held). Underwriter—None.
Daitch Crystal
Dairies, Inc.
April 28 stockholders approved
the authorized common
stock
^Arkansas Power & Light Co.
May 27 it was reported company plans to issue and sell
about 80,000 shares of cumulative preferred stock (par
about
$100).
<
Proceeds—To repay bank loans and for
struction.
Underwriter—To
be
if Vipont Mining Co., Cheyenne, Wyo.
May 27 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For mining operations. Office—Room 527, Hynds
Building, Cheyenne, Wyo. Underwriter—None.
Warner-Lambert Pharmaceutical Co.
May 26 filed 325,000 shares of
(6/15)
Doman
1,000,000
stock (par $1).
Proceeds—To In¬
Drug Products, Inc., now in liquidation,
which presently owns 558,411 shares, or 27.3% of the
outstanding stock. Underwriter—Morgan Stanley & Co.,
common
;
Bliss
New York.
(letter of notification) 238,632 shares of com¬
(par one cent), of which 192,011 shares are
tor account of company and 46,621 shares for account of
selling stockholder. Price—$1.25 per share. Proceeds—
To retire indebtedness and for working capital. Under¬
writer—Barrett Herrick & Co., Inc., New York.
stock
Webster
Uranium
Mines, Ltd., j Toronto, Canada
Dec. 30 (regulation "D") 300,000 shares of common stock
<par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony
Securities Corp., New York. Offering—Expected in two
3
general
Co., New York.
(letter of notification) 18,773 shares of capital
being offered in exchange for 124,165
shares of class A and class B capital stock of Excaiibur Uranium Corp. on basis of one Western share for
•each 6.6 shares of Excalibur stock held; offer to ex¬
pire on June 15. Address—65 Sena Plaza, or P. O. Box
1201, Santa Fe, N. Mex. Underwriter—None.
Hills
Western
filed
Nebraska
Oil
&
Uranium
Co.,
Inc.
>
(6/14)
stock (par 10 cents).
For
*
announced
was
debenture
Proceeds—For
a
issue
plans
company
of
several
issue
million
and
dollars.
concentrating mill, mining equipment
development. Underwriter—James
and for underground
Anthony Securities Corp., New York.
and
sell
publicly $5,000,000 convertible debentures. Proceeds
For expansion program. Underwriter — Robert W.
Baird & Co., Milwaukee, Wis.
—
June 22 will vote
on
on
common
the
stock
new
on
Meeting — Stockholders
financing and on split¬
2-for-l
a
Bids
will
be
basis.
received
Price—$1.50
and development
Office—924 Broadway, Denver,
writer—Israel & Co., New York.
exploration
common
share. Proceeds—
costs and working
per
capital.
Colo.
Under¬
if Wicker-Baldwin Uranium Mining Co.
May 26 (letter of notification) 900,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
;For mining expenses. Office—616 Sixth St., Rapid City,
S. D. Underwriter—Driscoll-Hanson, Inc., same city.
*
W & M Oil
Co., Lincoln, Neb.
Feb: 25
(letter of notification)225,000 shares of common
Price—$1.30 per share. Proceeds—For
©il and mining activities.
Office—116 S. 15th St., Linstock
coin,
.
(par $1).
Neb.
Underwriter
—
None.
J. Keith Walker is
President.
if Wooster
June
2
Rubber
Co.
(6/22-23)
filed
169,200 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
:
eight selling stockholders.
Underwriters—Hulme, Applegate & Humphrey, Inc., Pittsburgh, Pa.; Stroud &
Co., Inc., Philadelphia, Pa.; and The Ohio Company,
Columbus, Ohio.
Wyco Uranium, Inc., Salt Lake City, Utah
April 7 (letter of notification) 2,900,000 shares of com¬
mon stock tear one cent).
Price — 10 cents per share.
Proceeds—For mining expenses. Office—429 Ness Bldg.,
Salt Lake City, Utah. Underwriter — Rocky Mountain
Securities, Las Vegas, Nev.
by company
up to noon
(CDT)
$8,700,000 equipment
1955, and to mature
semi-annually to and including July 5, 1970. Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &
trust certificates to be dated July 5,
Hutzler.
April 22 (letter of notification) 833,333 shares of com¬
mon stock
(par one cent). Price—3^ cents per share.
Proceeds—For mining expenses. Office—522 Felt Bldg.,
Salt Lake City, Utah.
Underwriter—James E. Reed &
Co., Salt Lake City, Utah; and Coombs & Co., of Wash¬
ington, D. C.
if Zinnbad,
May 27
common
common
and
Inc.,
Denver, Colo.
5%
was
announced
stockholders
approving the creation of
on
an
stock
stock
(no par) and 40,000 shares of class A-l
(no par). Price—Of former, $1 per share;
of latter, 50 cents per
sition of inventory and
P.
O. Box 953,
Proceeds—For acqui¬
share.
promotion
Denver 1, Colo.
expenses.
Address—
Underwriter—None.
subordinated
sell
July
on
8
$6,000,000 of
will
con¬
debentures.
$5,000,000
corporate
stockholders
issue and
Proceeds—To retire
long-term debt and for
of
Underwriter
purposes.
Merrill
—
Offering-
Expected about the middle of July.
First National Bank of Fort
Worth, Texas
May 16 it was announced Bank
plans to offer to its
stockholders the right to subscribe for
100,000 additional
shares of capital stock
(par $10) on the basis of one new
shares held.
Price—$23.50
per
Proceeds—To increase capital and
surplus.
• First
National Bank & Trust
share.
Co., Tulsa, Okla.
Bank is
offering its stock¬
1955, the right to subscribe,
24, 1955, for 160,000 additional
shares of capital stock
.(par $10) on the basis of two
June
8
it
was
announced
holders of
record, June 6,
up to and including June
shares for each five shares held.
Underwriter
—
Beane, New York.
Price
$201 per
Merrill Lynch, Pierce, Fenner &
—
Ford Motor
Co., Detroit, Mich.
March 15 it was reported that
following a probable 10split, an offering of approximately 4,000,006
shares will be made to the
public. Price—Expected
to be around $60
per share.
Proceeds
To the Ford
Foundation.
Offering—Probably not until "latter part
of 1955, if then."
for-1 stock
new
will
vote
July
income
debentures, series A, to be offered in ex¬
change for outstanding preferred stock, series A, about
Aug. 1 on a par for par basis; offer to expire on Sept. 1,
1955.
Jan. 24, Willis Gale, Chairman, annoupced it should be
Fall before the company undertakes its next financing.
Proceeds—For
construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
last equity financing were The First Boston Corp.
Glore, Forgan & Co.
will
cost
For
and
new
about
Consolidated Edison Co. of New York, Inc.
May 23 it was reported company is expected to do some
financing in the Fall, the form and amount to be deter¬
mined later. Underwriter—For bonds, to be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley &
Co.; The First Boston
Corp.,
Consolidated Uranium Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed $6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter — Tellier & Co.,
Jersey City, N. J.
•
filed
jcompany
a
(7/21)
petition with
Michigan P. S.
Commission for authority to issue and sell 100,000 shares
preferred stock (no par). Price—Not less favorable
to the company than a $4.50 basis. Proceeds—For con¬
of
struction program.
Underwriter—Morgan Stanley & Co.
Registration—Expected June 24.
• Consumers Power Co.
(7/20)
May 25, Justin R. Whiting, Chairman of the Board, an¬
nounced company plans to offer to its common stock¬
holders 373,689 additional shares of common stock (no
par) on the basis of one new share for each 20 shares
about
July 21;
rights to
expire
on
Aug.
5.
Un¬
subscribed shares to be offered to employees of company
and its subsidiary.
Price—To be not less favorable to
the
than $4 per share below the then current
price at the time the offering price is deter¬
company
market
mined.
Proceeds
writer—
To
be
—
For construction program.
determined
Under¬
by
competitive bidding
Probable bidders: Harriman Ripley & Co. Inc. and The
First Boston Corp. (jointly); Morgan Stanley & Co.;
Bids—To
(EDT)
Registration—Expected June 24.
on
July 20.
be
received
up
to
11
a.m.
April
18,
preferred stockholders
an
creation
of
additional $25,000,000 of debentures
or
approved
^
was reported
company plans early registration
87,500 shares of 6% convertible preferred stock
(par
$10). Underwriter—Straus, Blosser &
McDowell, Chi¬
cago, 111.
of
Gulf States Utilities Co.
16 it was reported
May
company
$10,000,000 first mortgage bonds
may issue and sell
if market conditions
permit.
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co.
Inc.;
Brothers; Merrill, Lynch, Pierce, Fenner &
Beane and Wpite, Weld & Co.
(jointly); Salomon Bros.
& Hutzler and Union
Securities Corp. (jointly);
Kuhn,
Loeb & Co. and A. C.
Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(joint¬
ly); Stone & Webster Securities Corp. Registration—Ex¬
pected in June. Bids—Expected in
July.
if Gulf Sulphur Corp.
bidding.
Lehman
June
6
it
was
and sell
reported that the corporation may issue
$3,000,000 of convertible debentures*
Hammermill Paper Co.
May 10 stockholders approved a proposal on
increasing
authority to $20,000,000. Underwriter—A. G.
(Inc.), Chicago, 111.
Housatonic Public Service Corp.
May 23 it was reported company plans to offer to its
the
debt
Becker & Co.
stockholders
approximately
(par $15)
25 shares held.
on
a
18,017
basis of one
shares
new
of
common
share for each
Underwriter—None.
Hupp Corp.
May 13 stockholders approved a proposal
increasing the
authorized capital stock from
3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be
(new) serial
preferred stock, $50 par value and 1,000,000 shares shall
be common
stock, $1 par value); also waiving of pre¬
emptive rights to such increased shares.
Illinois
May 17 it
sell
an
Bell
was
issue
of
Telephone Co.
(7/12)
plans to issue and
$30,000,000 first mortgage bonds. Pro¬
announced
company
ceeds—To repay advances from American
Telephone &
Telegraph Co., the parent, and for capital expenditures.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Glore, For¬
gan & Co. and Union Securities Corp.
(jointly); Morgan
Stanley & Co.: Kuhn, Loeb & Co. Bids—Expected to be
received on July 12.
International Bank, Washington, D. C.
April 25 it was announced company, in addition to plac¬
ing privately an issue of $500,000 convertible deben¬
tures in the next few weeks, will offer additional
vertible debentures to
shareholders,
Continental Can Co., Inc.
not to exceed
Manufacturing Co.
May 19 it
stock
Consumers Power Co.
May 25
Given
issue of $60,000,000
Lehman Brothers.
(letter of notification) 10,000 shares of class A
announced
proposal to
—
Chicago, Milwaukee, St. Paul & Pacific RR.
held
•Wyoming Uranium Corp., Salt Lake City, Utah
was
approximately
share.
.
'
vertible
new
(6/15)
June 15 for purchase from it of
on
a
share for each
Charmin Paper Mills, Inc., Green
Bay, Wis.
May 23 it was announced company plans to issue
13
(no par).
April 4 (letter of notification) 200,000 shares of
*
it
a
it
Lynch, Pierce, Fenner & Beane, New York.
Corp.
Commonwealth Edison Co.
Western
£
-
19
of
May 10 it
Inn, Fort Worth, Texas
200,000 shares of capital stock
Price—$5 per share.
Proceeds—Together with other
-funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas. Underwriter—
Schwanz & Co., Inc., Aurora, 111,
•
sale
Mines
Chicago, Burlington & Quincy RR.
(par $1)
31
April
Development Co. of Delaware
March 14
Jan.
if Ferro Corp.
on
ting up the
three weeks.
Western
stock
1970, inclusive.
Inc.; Salomon Bros. & Hutzler;
Kidder, Peabody &
Co.; Blair & Co., Incorporated.
Co.
vote
Co.
Cavendish Uranium
May 24
or
to
-
April 26 stockholders increased the authorized common
stock (par $1) from 1,000,000 shares to
1,500,000 shares.
Underwriter—Previous financing was handled by Allen
if Washington Natural Gas Co.
mon
by the company on
$3,270,000 equipment
annually from July 15, 1056
Probable bidders:
Halsey, Stuart &
June
W.)
Underwriter—
are expected
to be received
June 20 for the purchase
from it of
trust certificates to
mature
Proceeds—To acquire Blackhawk Mutual In¬
(E.
activities.
(6/20)
Bids
—
announced stock¬
"increase authorized capital stock from
to 3,000,000 shares in
anticipation of
by Greene & Co., New York.
was
Co., Rockford, 111.
Underwriter
Arthur M.
Krensky & Co., Inc., Chicago, 111. Registration—Ex¬
pected late in May.
Inc.
Waters, President,
expansion of the
company's
Previous financing handled
&
ternational
shares
* Erie RR.
share.
authorizing
underwriting.
Helicopters,
Feb. 17 Donald S. B.
holders voted to
reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5
Price—To be supplied by amendment.
without
ers
new con¬
determined
surance
proposal
a
$60,000,000 of convertible debentures. Previous
offer of convertible
debentures was made to stockhold¬
Blackhawk Fire & Casualty Insurance Co.
per
increase
Co., New York.
Detroit Edison Co.
2 stockholders approved
May
by competi¬
tive bidding. Probable bidders: Lehman Brothers; Blyth
& Co., Inc. and Smith, Barney & Co.
(jointly); Equitable
Securities Corp. and Union Securities Corp.
(jointly);
White, Weld & Co. Bids—Probably in September or
April 5 it
proposal to
a
(par $1) from 500,000
shares to
1,000,000 shares to provide for future
financing
and expansion.
Underwriter—Hirsch &
October.,
1
53
other indebtedness maturing later than one year after
the date thereof.
The company has no present plans
in the Autumn of this year.
N. W.,
con¬
probably sometime
Office—726 Jackson
Place,
Washington, C. D. Business—Industrial merchant
bankers.
Continued
on
page
54
54
Continued jrom page
Sulphur Co.
of
(Texas;
an
offer¬
an
Feb. z8 it
Newark
&
last
Dallas, Tex.; and others.
& Co.,
May
share.
.J://
basis of
Stephens St., S.W., Atlanta, Ga.
of
it was announced that company pians soon to
SEC covering a pro¬
determined
be
March
29
ments
for
competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp. and Blyth & Co., Inc. (jointly); W. C. Langley
early 1956,
■' *
& Co.
offer sub¬
scription rights to its common stockholders about July 1,
1955, to subscribe .to 624,170 additional shares of com¬
May 26 it was announced company plans to
stock
mon
the
on
of
basis
one
new
share for each ten
rights to expire July 18. Price
—To be determined immediately prior to the offering.
Proceeds
For construction program.
Underwriters —
shares held about July 1;
—
Inc.; The First Boston Corp.; and W. C.
Blyth & Co.,
Langley & Co., all of New York. An additional 33,543
shares of common stock are to be offered to employees
at
same
Registration—Ex¬
time, without underwriting.
pected on June 10.
Lucky Stores, Inc.
stockholders approved a proposal to increase
the authorized common stock (par $1.25) from 1,000,000
April 20
shares to 2,000,000
standing).
It
was
shares (there are 804,063 shares out¬
reported previously that the company
proposed to raise approximately $1,500,000 through the
sale of 150,000 shares. However, no immediate financing
is
Underwriter—Probably Blair & Co. Incor¬
planned.
porated, New York.
Maine Central RR.
States
it
Power Co.
the idea of refunding the $17,000,000 5Vs"/<
and collateral trust bonds due
1978
bidders for new bonds may include Halsey,
not'given
first
up
mortgage
Probable
Stuart & Co.
Inc.; Kidder, Peabody & Co.; W. C. Langley
Coffin & Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
&
Co.;
Majestic Auto Club, Inc.
•
mission
new
capital
require¬
Co.
•
Nitro-Chemicals,
Ltd.,
be
soon
increased
changed
from
to
Coal
than
more
Operators
$3,500,000
Casualty
and
Co.,
are
Pacific
Telephone & Telegraph Co.
was
this
to
reported that the
make
the
of
one
ceeds—To
share
new
on
,June 27.
for
each
increase capital and surplus.
The First Boston
Middle
shares
per
share.
held;
Pro¬
Underwriter
United Aircraft Corp.
Ijlfjril
the proceeds for its
of Illinois
May 19 it was reported company plans to issue and sell
additional common stock.
On May 11, the authorized
issue was increased to 450,000 shares from 350,000 shares.
Underwriter—Central Republic Co., Inc., Chicago, 111.
Mountain States
May 21 it
and
sell
was
to
,its
Telephone & Telegraph Co.
announced that company plans to issue
stockholders additional
common
stock
next
Fall, the amount and ratio to be determined later. •
American Telephone & Telegraph Co. owns about 86.7%
of the presently outstanding common stock. Underwriter
—None.
'
Murphy
April
12
(G. C.)
stockholders
the authorized
limit
•
Co., McKeesport, Pa.
approved
of
a
to increase
$3,000,000 to
proposal
indebtedness from
$20,000,000.
Proceeds—For expansion program. Under¬
writer—Merrill Lynch, Pierce, Fenner' & Beane, New
York, handled preferred stock financing in 1942.
26 stockholders
approved
hew issue
a
of 500,000
Shares of preference stock (par $100). Proceeds-^-To
deem
cumulative
5%
re¬
stock
(233.500
agjhares outstanding), and for working capital.
Under¬
present
preferred
writer—Harriman Ripley & Co., Inc., New York,
w?
Utah Power &
March
Sell
was
Light Co.
reported
(9/13)
plans to
company
$15,000,000 of first mortgage bonds due
<||»eds
con¬
it
28
—
Pro-
To repay bank loans and for construction pro¬
Underwriter—To be determined
gram.
issue and
1985
by
competitive
*;b|$ding. Probable bidders: Halsey, Stuart & Co
union Securities Corp. and
Smith, Barney & Co
Infc.;
(joint¬
Sept.
White, Weld & Co. and Stone & Webster Securities Corp
(jointly); The First Boston Corp.; Lehman Brothers and
Bbar, Stearns & Co.
The company has scheduled
next
five
years.
Securities
Underwirters—Probably Stone
struction
Corp., The First Boston Corp. and
debenture
issue.
This
would
not
time within the next 12
months.
improvements.
Underwriter—To
units
be
con¬
President,
notes
•teWestern
mon
the
Bonds
are
Union Telegraph Co.
was
expected
to be
v
*
announced that consideration
to
approve
a
4-for-l
/.company's stock and the. issuance of
10,000
bond
issue or preferred stock. Underwriters—(1) For
preferred stock, Blyth & Co., Inc., San Francisco, Calif.
(2) For bonds, to be determined by competitive bidding.bidders:
i£red
;htave
new
as
been
side
being
split"- of
additional
shares, part of which are expected
but' no definite financing
aforesaid,
formulated. .-Underwriters—Expected
& Co.
ItWestpan
B^arch
an
to
be
plant
to
In¬
Kuhn, Loeb & Co.; Lehman Brothers; and Clark.
Pddge
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; Blyth & Co., Inc.; • Union Securities
Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.;
White, Weld h Co. and Shields & Co. (jointly).'. Offer¬
ing—Expected in September. 4
-
Is
to the issuance of some additional shares of com¬
stock through an offering to stockholders.
Stock-"
folders April -13 voted
$11,000,000 new capital
help finance its current $20,000,000 construction pro¬
gram.
The financing will probably take the form of a
to
Siboney Development & Exploration Co. (Cuba)
May 28 it was reported company plans early registra¬
tion of 2,000,000 shares of common stock. Price—$1 per
stock.
~jU§^erwriter—May be Dean Witter & Co.
feiven
that
and
Offering—Expected in July. •'
•March 15 it
reported
Sept. 13.
:*/;;Wes*ern Light & Telephone Co., Inc.;
1
recently
on
May 2 it was reported company plans to issue and sell
about $2,500,000 first mortgage bonds, series H, due 1984.
company will need a minimum of
Probable
For
—
Underwriter—To be determined by
f$ced privately. Underwriter—Eastman, Dillon & Co.,
deter¬
Diego Gas & Electric Co.
Sherwin,
of
York.
ew
by competitive bidding. Probable bidders: Hal¬
Stuart & Co. Inc.; The First Boston Corp.; Union
Co., Inc. and Harriman Ripley
Securities Corp.; Blyth &
& Co. Inc. (jointly).
D.
plans public sale p#
Proceeds
April 25 it was reported company now plans to issue
ahd sell publicly about $20,000,000 of securities, probably
Ry.
mined
San
.
|First Boston Corp. Bids—To be received
|/ Westcoast Transmission Co^, Ltd.
Under¬
stockholders approved an additional issue of
to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially $19,500,000 principal amount
to mature in 40-years.
Proceeds — For property addi-'
E.
stock.
common
program.
(9/13)
company
Kidder, Peabody & Co. and Merrill Lynch.
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; The
up
and
reported
/(jointly);
exceed
May' 10
tions
To be received
—
^competitive bidding. Probable, bidders: Lehman Bro¬
thers; Union Securities Corp. and Smith, Barney & Co.
$50,000,000 and would be issued at the discretion of the
directors any
was
1771500 shares of
&
Bids
,
March 28 it
Smith, Barney & Co.
convertible
(jointly).
13.
*4Jtah Power & Light Co.
large-scale expansion program, involving $75,000,000
keep abreast of estimated load growth over
in order to
sey,
States Telephone Co.
about
of several million dollars."
—
Corp., New York.
,
reported company expects to sell
was
ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler:
St. Louis-San Francisco
six
Price—$40
Electric Co. of Missouri
it
Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be necessary in 1955 to obtain funds for construction
purposes from outside sources—at least to the extent
Bank of Boston
additional shares of capital stock (par $10) in
ratio
rights to expire
common
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
fftyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman' Brothers and Bear,
v
company
writer—Probably Smith, Barney & Co., New York.
for 50,000
100.000 shares
$25) and ihstock from 500,000 shares to
stockholders approved
—
*
April 9 stockholders approved the possible issuance of
announced the company plans to offer to
record June 9 the right to subscribe
Proceeds—For working capi-
publicly offered.
$30,000,000 30-year first mortgage bonds late in 1955.
rfetoceeds—To repay bank loans and for new construc**H9fi:
Underwriter
To be determined by competitive
Pure Oil Co.
of
authorized
effective
Corp., / Stearns & Co.
(jointly); White, Weld & Co. and Shield!
'H Co. (jointly).
Dowell; and McCormick & Co. (latter handling books).
was
Republic
Central
Precision Instrument Corp.
5%
Jan. 24
program.
Previous bond financing was ar¬
privately through Drexel & Co. and The First
Corp. ;
Boston
—
Office—Buffalo, N. Y.
i^tlnion
struction
ranged
Underwriter
urogram.
1,000,000 shares.
Pennsylvania Power & Light Co.
April 19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
use
To-
Chicago, 111.
inseased authorized
an
and
to be
y
bf
expects later
offering of additional stock to
stockholders, following approval of a proposal to in¬
crease the authorized capital stock from 8,500,000 shares
(7,215,180 shares outstanding) to 10,500,000 shares.
year
—
25
creation of
§Unexcelled Chemical Corp.
non-voting preferred stock- (par
June 1. Underwriter —May be The First Boston
New York.
May 7, it
Proceeds
(par $25).
stock
preferred
Sterling
tal.
name
a
stockholders
S. Com-
to the Arkansas P.
applied
authority to issue and sell 46.000 shares of
(Inc.),
'
Can.
Alberta,
May 23 it was reported company plans early registra¬
tion of $2,000,000 convertible debentures due 1970. Un¬
derwriters
Hallgarten & Co.; Straus, Blosser & Mc¬
May 7 it
,
Telephone Co.
/issue of 500,000 shares of first preferred stock (par $10),
of which 300,000 shares (to be converted into common)
Old Republic Insurance Co., Greensburg, Pa.
April 25, it was announced capital and surplus would
•Office—Room 717, 141 Broadway, New York 6, N. Y.
Merchants National
Corp (jointly);
& Co.; Kidder Pea-
June 6 the stockholders voted to approve an
project. Underwriter—Eastman, Dillon & Co., New York
Webster
—
(jointly;, Union
*
-March 4 company plans to issue and sell publicly deben¬
tures and common stock to finance'its proposed Chemical
public shortly after completion of the current offering
service station owners and operator!.
Products, Inc.
& Co
Witter
Dean
States
company
for
/construction
will
Underwriter—To be determined by competi¬
Northwest
the
Maremont Automotive
companies.
; gether with funds from, proposed issue (probably pri¬
vately) of $2,000,000 first mortgage bonds, to be used for
(joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly); Glore, Forgan & Co.
000 shares
of 100,000 shares to
ol
be
Southwestern
cumulative
tive bidding.
Probable bidders: Halsey, Stuart & Co
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane, Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Equit¬
a
Aug. 25 it was announced company plans to offer 500,(par five cents) to the motorist and general
Issue
to
(par $5). Proceeds—To repay
m additional stock ol subsidiary
.April 25
(Minn.)
that
announced
was
1955
first mortgage bonds
Feb.T4, E. Spencer Miller, President, said company has
and
comnfon
bairn loans and for
plans
company
public 500,uuu aaoiuonai onmet
t
able Securities Corp. and Union Securities Corp.
(7/1)
Long Island Lighting Co.
9;
body & Co., and Merrill Lynch, Pierce, Fanner A Beane.
Bids—Tentatively scheduled for Nov ft. BegiAcmttoo—
Not expected until Oct 12
/
approximate $31,000,000. Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
writer—To be determined by
Co.; Smith, Barney & Co.; Baxter, Williams
Offering—Expected late in 1955.
;
by
A.
Long
&
the
to
(11
announced
/Lehman Brothers; Morgan Stanley
competitive bidding" Probable
Morgan Stanley & Co.; Halsey, Stuart & Co. Inc
Island Lighting Co.
April 23 it was announced company plans to sell an
issue of about $15,000,000 first mortgage bonds, series H,
due 1985. Proceeds—For construction program.
Under¬
V :
Co.
was
Securities Corp. and Equitable Securities
capital money to aid
Northern
Searight, New York.
,
received on
Co. Inc.;
Bias
bidding.-
ex¬
'
posed issue of 600,000 shares of common stock. Proceeds
general corporate purposes. Underwriter—George
.
n
Stearns & Co.. and
and
bidders:
—For
A.
has
for
*
in carrying out its expanimprovement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds
to
letter of notification with the
a
Commission
U.
determined by' competitive bid¬
ding.'Probable bidders; The First Boston Corp., Ladenburg, Thalman & Co.; Carl M Loeb. Rhcades Sr Co ahd
-'Werthehn &
Co.
(jointly;, Biyth & Co., Inc., Bear,
York
new
sion
Developments, Inc., Cleveland, Ohio
[
from Halsey, Stuart &
were
|/nderwriter—To
share for each three shares held. Price
new
P.
competitive
/
sell
Application
bonds.
investment
before June 24 for
Telephone Co.
Jan. 17, Keith S. McHugh, President, announced thai
the company will have to raise more than $100,000,000
'
May 25
or
on
,
Co.
mortgage
California
Ponds
oi
30
stock
record
of
stockn^iucrs
its
*
one
New
offering of 16,666 shares of common stock was recently
made to residents of Georgia only at $3 per share.
file
to
Proceeds—To increase capital and sur¬
plus. Underwriters—Clark; Dodge & Co.; Union Secu¬
rities Cdrp.; Adams & Hinckley; Nugent & Igoe; Julius
A. Rippel, Inc.; and Parker & Weissenborn, Inc:
1
v
Keystone Wholesale Hardware Co., Atlanta, Ga.
that the company plans at a later
date to offer additional shares for sale nationally.
An
Lithium
oltered
right to subscribe
—$91 per share.
Jan. 27 it was stated
Office—517
Bank
(N. J.)
45,000 additional shares of capital stock (par $25) on the
Co. (joints
Expected before
—
the
the
June
Pierce, Fenner & Beane and White, Weld &
Offering
6
June 3
Underwriter—To be determined by competitive bidding
Probable bidders: The First Boston Corp.; Merrill Lynch,
ly);' Glore, Forgan & Co.
July 1.
sell
State Bank of Newark
National
first
with
Southern
Dec.
•
Proceeds—For construction program
preferred stock.
expire on
to
derwriter—Clark, Dodge & Co., New York.
Central Power & Light Co.
Feb. 21 it was reported company plans to sell $5,000,00C
Jersey
of
June 14. Price—$70 per
Proceeds—To increase capital and surplus. Un¬
rights
19;
sale
Gas
Blyth & Co., Inc.; White, Weld & Co. ana Union SecuCities Corp. (jointly), Lehman Brothers.t
■
& Co., New York, and Garrett
D. Sherman
writers— L.
Thursday, June 9, 1955
.
reported company plans to issue and
of
from
emption
*
California
was
filed
been
Banking Co.
Essex
.
.
Underwriters—Gregory & Son, Inc., New York,
Southern
Underwriter—None.
Chronicle
Dempsey-Tegeler Co., St. Louis, Mo.
and
May 23 stockholders received right to subscribe for
28,880 additional shares of capital stock (par $25) on
basis of one new share for each eight s. ares neld on
reported early registration is
was
approving
$40,000,000
National
planned
undertermined number of common shares. Under¬
it
3u
to vote on
increase capital and surplus.
of the Board.
Co., New York, is Chairman
are
ing to sotckhelders of 20,000 shares of common stock on
a
pro rata
basis.
Price—$40 per share. Proceeds—To
Seattle, Wash.
May 23 it was reported company may do some financing
time in the future. William D. Bost of Whitcomb
Isthmus
9 stockholders
uune
some
Marcn
share.
★ National Bank of Toledo
53
International Oil & Metals Corp.,
&
Financial
The Commercial and
(2686)
2 it
*
Hydrocarbon Co.
was
-
.»
,
,.
announced Sinclair Oil Corp. has agreed
the SEC to divest itself of its investment of 384.380
of Westpan stock (52.8%).
Underwriter—Union
irities Corp., New York, underwrote recent sale of
ires
-
Sifrclair's holdings of Colorado Interstate Gas Co
&
bidders.
Co.,
New
York,
may
be
included
White.
among
the
Volume 181
Number 5436
.
.
.
The Commercial and Financial Chronicle
Warner-Lamberts Pharmaceutical.
Co.
^3
stock.
pffJr
will
Bankers
block
a
of
325,000 shares of-the firm's $1 par
value
common,
pany,
but for
hot for the
ing
quiry,
indicates broad
is said;!
it
interest.
currently
market'around 33 Vz-
in the open
34, the indicated ^overall value of
this transaction fdots up to around
$11,000,000.
-;v
The
stiffening tone noted in the
seasoned bond market through the
past week, particularly in
the
long-term Treasury list, drew con¬
Several other
deals
the week-end with
over
cleaning up of two of : the
largest cf recent new corporate
;
As
offerings
is
not
in
moved
-.
to
the
substantial
moved
here
small. V
Edison Co.'s $60,000,000
out
at
to a range of 100%
100% offered, while Ohio
Co.
uled
open
to
bid^ f6r $15,000,000
30-year
first
to
provide
funds;, tor
Edison's $30,000,000 of new bonds
cf
carrying the same rate "and
brought out also at par, touched
Jmqrigage bonds
struction.
a
Demand
scattered
from
came
New
widely
but
with
year
institution,
York
buying side.
the
on
investment
ported
Canadian
interests
were
re¬
continued
in
cated
new
con¬
both
conspicuous
s'bn ci»n
g^er**!
course,
of
new
by
currently
the
-"*<•«?
in
for
investors
•
,
of
sight.
a
their
for
bid of 100.89%.
a
proceeds from the sale
portion of the
a
for the
funds
of
required
better
ment of temporary
one
curred
connection
in
ed
to
the
with
As of May
$1,100,000.
The
or
more
utility
services
DIVIDEND NOTICES
$15,900,712
$2,144,792.
and
net
earnings
of
WAGNER BAKING
CORPORATION.
The Board of Directors has
June
lagher
2nd
James
acquired
a^d
admitted
was
M.
declared the regular quar¬
terly dividend of $1.75
Gal¬
share
membership
a
in the New York Stock
5
of
the New
York
ranging from 104%% to
at
special redemption prices
dividend
a
stockholders
J. V.
DIVIDEND NOTICES
run-
AMERICAN
NOTICES
ROBERTSHAW-FULTON
CONTROLS COMPANY
PREFERRED
"■
'-•/
'
bankers
takes
the
will
The
have
for
form
firm,
New
as
D.
DIVIDEND
Convertible
COMPANY
Directors
of
26,
May
day
de¬
Twer.ty-
has
this
Dollar and
Ono
close
of
business
;as
dividend
quarterly
mon
on
of
No.
payable
of
Transfer books will
closed.
Checks
not
will
payable
record
1955.
84,
**a
Wm.
1955
close
of
stockholders of
to
business
June
10.
|
WALTER H. STEFFLER
Secretary & Treasurer
.ftnncssu coftpohatiom
per
TENNESSEE
share'
close
at
business
of
July
CORPORATION
Parker
20,
be
June 2,1955
J. Williams
May 12, 1955
Secretary
A dividend of thirtyseven
Vice-President & Secretary
onedialf
and
York
New
Honduras
&
Mining
IT
I
^
I
per
Rosario
stockholders of record
N. Y.
June
H
LJJ}
,
The
H
at
a
Board
of
8,
this
1955,
f
close of business June 9,1955.
Meeting
held
this
day,
declared
an
dividend
for
the
second
quarter of
of One Dollar Fifty Cents ($1.50) a share
outstanding capital stock of this Com¬
John G. Greenburgh
Treasurer.
the
pany, payable
of
record
at
17,
to
the
Company,
interim
on
at
1955.
411
of
Directors
(37KC) cents
share has been declared
payable June 27, 1955,
Company
VtQ Broadway, New York 5,
V
No- 69
20,
the
j
per
the Common Stock
The transfer books will not be closed.
August 15, 1955, to holders
on
record
2(34
DIVIDEND NO.
DIVIDEND
June
at
on
1955.
O
COMMON
of
system, inc.
Dale
be
mJuletL
Michigan
quarterly dividend of 37J4c
share has been declared
Common Stock
rec¬
June 15, 1955.
on
CORPORATION
of
close
10, 1955.
day the following quarterly dividend:
Stock, payable July 1,
1955 to stockholders of
.j
regular
The Board of Directors has declared this
the Com¬
ord at the close of business
Telephone.
the
the columbia
$0.20 per share
parent
at
on
NOTICE
Detroit 73,
Preferred
stockholders
COMMON STOCK
A
coRpaRAiin%
a
to
1955.
WILSON, Assistant Treasurer,
Broadway, New York 5, N. Y.
Common Stock
PROfiDCTS
ALLIED
*
5 Yi per cent Cumulative
May 27,1955
*
Am
C.
120
t.
f
of
dividend
a
Y.,
($1.25)
per
share, being Dividend
No.
113,
on
the
Preferred Capital Stock
of
this Company, payable August
1, 1955, out of
undivided net profits fcr the year ending June
30, 1955, to holders of said Preferred Capita'
Stock registered on the books of the Company
at
the
close of
business
June
30,
1955.
%
•
Board
N.
Cents
June 15, 1955.
in the ;>ase of Southern
•—.■
per
the $25.00 par value
on
stockholders of record at
the
„
Telep^ohl Co., also to
England
divi¬
$0.34375
business June
Stock, payable July 1, 1955
schedule<J?:t$ bring up for
$30,000,000 -bf bonds of Illi¬
the
of
share has been declared
AND
TOPEKA
RAILWAY
FE
York,
$4.25 Cumulative Preferred
to
July is ten¬
advances^ byf
five
regular quarterly dividend
$1.0625 per share on the
of
A
Bell
The
clared
following dividends
been declared by the
Preferred Stock
Gas Co.
bids
New
Board of Directors:
be
of 776,066
nois
secondary .offering of
<«
A regular quarterly
dend
HOFFMAN, Secretary
ATCHISON,
SANTA
NOTICE
DIVIDEND
tatively
undertaking in the
ahead
PREFERRED STOCK
record
1 HE
negotiate^.
The second week in
|
GrMniburg, Pa.
STOCK
1955
debentures
Pionee^ Natural
shares of
con¬
record
Stock, payable June 20,
are
ofteijing
of
STEVENS, Secretary.
May 31, 1955 a quarterly dividend of one
and three-quarters per cent was declared on
the I'referred-Stock of this Company, payable
July 1, 1955 tj) Stockholders of record at the
close of busj/ess June
16, 1955. Transfer
books willjsmain open. Checks will be mailed.
ConsolidateddGigar Co., by the
an
•
June 17, 1955.
On
if^jgpears that in¬
route*? This
of
per
CAN COMPANY
A
negotiated
.
dends payable July 1, 1955
to
Ex¬
change.
and
par,
also
cents
per
7% Preferred
share on the
Common Stock. Both divi¬
partner¬
Stock
the
on
Stock,
Exchange
to
ship in F. L. Salomon & Co.. 120
Broadway, New York City, mem¬
bers
bonds will be redeem¬
new
F. L. Salomon Partner
able at regular redemption prices
condition?
$16,OQOj000
Co., Inc., 418
are
For the year 1954, the
company
had total operating revenues of
On
25, 1955, these bank loans amount¬
DIVIDEND NOTICES
B
.
&
Rockford, Freeport and Lincoln.
pay¬
bank loans ir?
construction program.
getting a crack a"
substantial in new of¬
the
with
connected
Herrick
Locust Street.
1,815
square
miles, located wholly in
the State of Illinois and
having an
estimated population of
228,000.
The principal cities supplied with
present and contemplated
and to provide for the
pany
havgnO wait severa'
preceded by
Largest
Deal
investment
sizable
become
Barrett
approximately
Southern New
of
repay
of
Net
Scheduled for th0 week of June
single corporate
;
The largest
week
on
the bonds will be used to provide
before
stock, also
Secondary
the
June 7
ferings.
sideration.
hands
at
yield approximately 3.30%. Award
of the issue was won by the un¬
derwriters at competitive sale on
change their views ir
will
pnvthing
side, Virginia Electric &
'
1985,
gregating
borrowers, whc
inclined to sit back
meanwhile,
vestors
Power's $25,000,000 of bonds were
,
1,
101.421% and accrued interest, to
DIVIDEND
27
'r-
June
due
3%%
cas<2$;
are
wait
and
by the veritable
material
This week only a
before
has
gel
Unless potential
weeks
of
bonds,
EDMUND
sources.
helped, cf
four
of
more
Long Hiatus! Ahead
marketwise,
issue
mortgage
substantial buyers.
as
absence, presumably still
being able to acquire direct deals
and place sufficient funds in new
mortgages to keep down the pres¬
sure
of mounting investable re¬
dearth
first
advances by American
Telephone & Telegraph Co. parent
firm. Keen competition is indi¬
their
The
Co.
repay
Meanwhile, the so-called "BigFive"
dayjj
same
for
3:
or
ST. LOUIS, Mo.—Curt M. Vol-
of Central Illinois Electric & Gas
bids for $*£d,600,000 of 34debentures ~to raise funds to
over
only
acting for pension funds, showing
up
and
loans
repayment
one
(Special to The Financial Chronicle)
Gas
utility
furnishing
With Barrett Herrick
England Telephone Co., will look
sources,
large
one
bank
The
high of 101.
the way of
Qfclafioma Gas &
tehtajtively sched¬
is
of
up
bid and
21
Electric
100
fn
|ssi|es, and even
i| - J; jpomparatively
new
size
June
follow¬
ac¬
case.
Central Illinois Electric &
Co. is an operating public
construction program of the com¬
me] market will
anything
the
On
vj
iintil the
that
week
substantial
both
premiums
brought
$
encounter
offering prices.
3V4s
new
ing
but what
they
will
It will not be
taken
were
impressive
Detroit
of
only
their entirety,
more
over
ably
plus
par,
crued interest in each
Halsey, Stuart & Co. Inc. offer¬
utility services^ electr^ gas steam
ed yesterday (June 8) $4,000,000
heating and water) to areas ag¬
smaller negotiated
tap,land, barring any
developments prob¬
come# t (i r o u g h on
schedule.
master of fact, both these
a
down
i ;
-
•
are on
unforeseen
the
offerings.
Celling
ning from 101%% to
Kalsey, Stuart Offers
Public Utility Bonds
series
With the stock
firmation
com¬
th£ account of sell¬
stockholders! Preliminary in¬
55
(2687)
June 28,
on
the
close
1955,
of
61
to stockholders
business
on
June
Broadway
New York
1955.
,
6, N. Y.
i l
k'i */"'
,,
G. E. McDANIEL. Secretary-Treasurer.
On
June
1,
the
1955,
board
of
directors
Corporation, a Michigan corporation,
dend
of
tion,
payable
close of
60c
per
business
on
27,
1955
June
declared
the Common
share on
June
15,
to
Allied
of
a
TIME
GENERAL
quarterly divi¬
tue'CC.puia-
o.
snares
snareholdero of
Products
CORPORATION
record ao tue
1955.
j
Dividends
>
The Board of Directors has
clared the following
CONTINENTAL
-
BAKING COMPANY
Preferred Dividend No, 66
of
quarterly dividend
share oft the outstanding $5.50 dividend Preferred
Stock; payable July 1, 1955, to stockholders of recordthe close
of business June 10, 1955.
$1,371/2
SHOE
dividends:
STOCK
jj/COMPANY
The regular quarterly dividend
—
The Board of Directors has declared this day a
of
PREFERRED
INTERNATIONAL
de¬
per
$1.06k£
on
cumulative
able
ers
the 414
per
St. Louis
cent
177™
July 1, 1955 to sharehold¬
CONSECUTIVE DIVIDEND
COMMON
dividend
A
regular quarterly
dividend, for the second quarter of the year 1955, of 45^ per share
on
the outstanding Common Stock, payable July 1, 1955, to
a
record
of
of
stock
of 50
OF
1955.
be closed.
quarterly dividend of 60tf
to
payable
June I, 1955
134th DIVIDEND DECLARATION
The Board of Directors of this com¬
close of business June 15, 1955,
declared
•
by the Board of
STR0MBERG
pany
today declared a cash divi¬
dend of
on
Fifty Cents (50$!)
the capital
dend will be
to
BIG BEN
SETH THOMAS
treasurer
per
July 1, 1955
Directors.
WESTCLOX
WILLIAM FISHER
on
stockholders of record at the
was
will
-
^
Secretary
June 1, 1955.
The stock transfer books
A
share
John H. Schmidt
PITTSBURGH, PA.
per
payable July 1, 1955 to
shareholders of record June 17,
the close of business
June 10, 1955.
cents
share
such
holders
not
COMPANY
STOCK
Common Stock
declared this day
at
FIRE INSURANCE
of record June 17, 1955.
Common Dividend No. 41
The Board of Directors has
NATIONAL UNION
preferred stock, pay¬
ANDREW W. JOHNSON
RECORDERS
of
share
paid June 30, 1955
stockholders
close
a
stock. This cash divi¬
of
business
record
at
the
June 14, 1955.
Vice-President and Treasurer
HAYD0N MOTORS
Treasurer
June 2,1955
June
7.1955
>
56
The Commercial and Financial Chronicle
(2633)
.
.
Thursday, June 9, 1955
.
BUSINESS BUZZ
Washington...
o
/l^k gJ
jtMlIIW
IMUiiUlilljU, Behind-the-Scene Inffc^bGoftl"
Nation's Capital
from the
^
Without
WASHINGTON, D. C.—Fiscal
that the best thing
the question of tax
observers say
with
do
to
it
put
1956
closet
political climate a few
national con¬
at the
months before the
ventions.
ment
House pronounce¬
White
latest
his
in
Eisenhower
President
of
balancing than of tax
appeared to think more
budget
-
written
His
relief.
earlier
this
messages
defi¬
pointed
year
nitely in the direction of tax re¬
legislation in 1956 regard¬
less of budgetary considerations.
lief
For
gress
come
It
and the Administration,
1956, the year of decision.
the Republican Ad¬
asking for a fresh
with
ministration
mandate,
Eisenhower
well feel
the
that
Administration
may
the
subject of four years of unbal¬
anced budgets.
If so, it might
be considered the best politics
vulnerable
politically
pitch
to
the
on
to the
woo
ancient and
forgotten fiscal moorings.
the
along
On the other hand, the
voters
almost
Demo¬
1956, to
start beating the drums for big
globs of tax relief. It could weil
crats
with
Even
limit
debt
a
going,
are
come
turn out that the Administration
rise,
borrowing
until fall.
from
more
Business also is hav¬
burden
the
under
of the reasonable
care
it is
said
on
Meanwhile, there are a couple
things clear about the situa¬
tion ahead for fiscal 1956.
George
that
is
reduction
is
for
a
expendi¬
in
forlorn
most
a
Hum¬
hopes
expressed
hope
which to pin a chance for
relief. Military spending is
upon
tax
steady at not
$34 billion, and
to hold
expected
than
less
not
rise—always barring peace
may
suddenly
b
r e a
of
out,
k i n g
spending
civilian
And
course.
constantly under
existing
broad
welfare
pro¬
grams, and would be doing so
is creeping up
adopted
fare
hadn't
Eisenhower
if
even
brand
some
of
schemes
wel¬
new
his
Quotas
placed sources have
predicted that President Eisenhowever will NOT
the pow¬
use
this
the
clears
conference)
him to establish quotas
upon such imports as threaten
seriously
domestic
industry.
Such an impression arose out of
deal more than the
present prospect of a new high
in business volume and national
great
income to BOTH cause the pros¬
pective 1956 deficit of $2.4 bil¬
lion to disappear and turn ipto
a
surplus big enough to permit
any
such substantial tax relief
be necessary in an
would
as
the
Immediately,
faces
some
Despite
existence
the
of
an
effective
about
of
corporation tax rate of
57% (with the speed-up
counted, in)
payments
Treasury
importations
the
during
"by from $9
meeting its
June
to
billion
$10
of
cash
.lections.
be
even
back
when
sonally high.
^the
will
money
paid
June,
Treasury
will
not
of
in
will
have
to
if most of it
from
be
can
by
the
be
a
avoid the Eisenhower Adminis¬
tration
having
to
face
to
up
quotas.
An
explanation has been of¬
fered as to why the Senate was
so
comnaratively moderate to¬
Eisenhower's
trade
pro¬
gram, despite the strong reports
the Senate would put in restric¬
tive amendments.
Conservative Democrats hesi¬
tate to depart from their ancient
moorings
trade
In
favor
policies.
hand, they
are
liberal
of
On
the
other
disturbed at the
foreign
industrial
competition
has been outfitted with modern
machinery,
making
abroad
wages
They
Department
that
made
a
the
real
lower
factor.
disturbed by the State
are
view
steady
point
concessions
liberally
to
of
must
foreign
porters "in order to fight
be
ex¬
com¬
are
sea¬
a
pretty much what he wanted
Reciprocal Trade, but aim to
approval both of
GATT, and the companion proj¬
on
withhold
ect,
Office
ting another temporary rise be¬
yond $275 billion in the legal
debt limit.
Coopera¬
to
of
idea
making
the
that
fact
had
a
con¬
taken
ending controls.
SBA
Is
Costly
How costly the
business is of
nursing small business borrow¬
the
of
ers
Small
ministration,
Business
has
been
Ad¬
testified
in public recently.
to
business—all of
York
sist
Republican
Reconstruction Fi¬
Corporation," disbursed
$38,666,000 of loans. During the
same
period its administrative
were
Rep.
Tex.)
$8 million.
Committee, brought out that the
ratio
administrative
of
penses
Loans
to the total of authorized
(much
bursements)
SBA
nant
ex¬
than
6.5%.
dis¬
greater
was
officials get most indig¬
that percentage is
when
flung
at them.
They .point out
that
they give "financial coun¬
seling" to applicants for small
business loans, having "finan¬
cially counseled" in some 5,500
one
thing, Congressional
"educational
der the
program."
latter the
sued such
conducts
Un¬
SBA has is¬
profound advice
as
to
tell small business that sharpened
tools
are
more
efficient
dull tools, and that it is
idea
to
books.
great
keep
in
could
no
prominent
an¬
takers
be found for the sinuous
stratogv that
some of the bright
Administration boys had cooked
up.
This
ator
was
to have
introduce
the
some
Sen¬
bill,
then
Relating
Foreign
to
the
in
12
United
—
Bank1
International
N, Y. Fin.
Analysts
Elect New Officers
Nathan
Bowen, associated with
Goldman, Sachs & Co., has been
elected "President
The
of
New
Analysts,
Inc., for the year starting June 1,
1955. Formerly Vice-President, he
succeeds
William
R.
White, of
the
To
manifold
credit
other
aids,
farm
hower Administration has
up
with
one.
new
a
and
Eisen¬
the
Hornblower
come
This is to
Other
provide loans to "part time and
income
farmers"
the Farmers Home Administra¬
tion.
*
This is
an
outgrowth of Presi¬
program of
weeks
several
&
enunciated
in a message to Congress, to do
something for the poor parttime
who
not
low
and
so
are
make
ago,
income
bad
the
off
pire
-
Secretary of Agriculture
authority
would be given broad
terms
as
part-time and low
exceed
on
the
Executive
Com¬
terms to
"such
Wilson, Hallgarten & Company;
Stephen
L.
Joseph,
Bache
&
Company; and Gerald L. Wilstead,
Hallgarten & Company. Gerson D.
Lublin, Hentz & Co., was elected
for a
one-year
term to expire
June
1,
1956.
he may direct," not to
$10,000
per
loan.
(This column is intended to
re¬
flect the "behind the scene" inter¬
accounting
SBA goes to
pretation jrom the nation's Capital
and may or may not coincide with
trying to
the "Chronicle's"
get
own
views.)
Neu> Views
on
RIVERSIDE CEMENT CO.
CALIFORNIA
CLASS
B
(Common)
Copies
STOCK
on request
LERNER & CO.
Investment
Securities
10 Post Office Square
Carl Marks
&
Co. Inc.
FOREIGN
SECURITIES
SO BROAD STREET
TEL: HANOVER 2-0050
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
ex¬
June
Longley G. Walker, Stone & Web¬
Securities Cofp.; Edward S.
ministration.
income farmers loans
to
ster
the most liberal lending
to make such
the
1, 1957 were Donald
Randell, Natural Resource Funds;
fanners
terms of the Farmers Home Ad-
for
Kahn, A. G. Becker
Co., Inc., Treasurer.
Elected
the Farm Credit Administration,
or even
elected
year were
mittee for two-year
they do
at banks,
grade
Weeks.
Lawrence R.
Eisenhower's
dent
&
officers
W. Sturgis Macomber, Reynolds & Co., Vice-Presi¬
dent; Nicholas E. Crane, Dean
Witter
&
Co.,
Secretary;
and
new
through
good
a
cost
Finally,
expense
than
to
Settlements, \
Basle, Switzerland (paper).
,
lending agency.
a
Busi-j
Revised
York Society of Security
The
SBA
for
of
sentiment a^neared to be strong-
against this project For
—•
s
Add Loan Benefits
cases.
Furthermore,
Affecting
Control
Funds
ex¬
SBA, on the other
hand, contend that the SBA
begs the question. What SBA is
doing, they insist, is subsidizing
small business with free legal,
accounting, credit, and contract¬
ing advice, and that if this were
openly given through a service
agency such as the Department
of Commerce, there would be
low
Wright
Patman
(D.,
of the House
Banking
loan
Laws
States: Supplement
Critics
little need for
ation, the Small Business Ad¬
ministration,
known
as
"the
costs
strictly
ly to get standby controls en¬
acted
as
part of the Defense
For
Money
(paper), $2.50.
pense.
In its first 20 months of oper¬
nance
not
are
ministration seeking aggressive¬
Act.
request.
Your
Corporations
Regulations
which they in¬
it
is not
necessarily
close observers are now
saying that the chances
are
against
the
Eisenhower
Ad¬
Production
on
Invest
While
other,
.that rock of sound finance, Sen¬
ator Harry F. Byrd, into clear-
Trade
avoid
to
view
in
The
firm!"
final,
Iv
cajole
press
this
government contracts for small
Controls Prospect Receding
faces
to
of
tion.
The first problem
is
House
question.
was
credit for
an
munism."
January to
revenues
White
Administration
the
con¬
Administra¬
voluntary re¬
striction to avoid arousing the
all-domestic producers and
to
It
ward
this
a
as
action
of
but
use,
about
come
official
curred
to
outpayment
.needs, due to ,the seasonal char¬
acter of the corporation tax col-
borrowed,
domestic
of
tion.
the
Decembers period will fall short
This
14%
this
of
trols,
It is said that oil
er
Treasury
problems.
difficult
planted
a
public request for standby
mittee.
out
me
publicly endorse it in answering
Chairman Harry F. Byrd
Va.) of the Senate Finance
consequence,
old-line
Democrats gave Mr. Eisenhow¬
Faces Immediate Problems
ease
conference
(D.,
(
May 2, 1955 — United Statesr
Corporation
Company,
160
Broadway, New York 38, N. Y.
get the idea they're trying to gradually
I
President Eisenhower's letter to
As
election year.
"Sometimes
gave
com¬
W.
—
and Business
of Economic
ness
Reciprocal Trade Act extension
(if
Loans
(cloth), $3.50.
(paper),
New
of the Senate version of the
ers
Instalment
Ralph C. Epstein—Ronald Press
Company, 15 East 26th Street,!
New
York
10, N. Y. (cloth),s
$3.50.
j
Highly
fact that under foreign aid much
own.
other is that it will take
The
a
111.
How
these circumstances.
Eschew
10
postpaid.
copy
Research, College of Commerce,
University of Illinois, Urbana,
will find long-term
foreclosed to it under
result
wagon.
of
further
reau
speaking,
Will
or
Current Economic Comment—Bu¬
money
like
tures
Ohio
sea¬
plentiful.
Thus the Treasury, practically
money
10
of
Research, College of Com¬
and Administration, Ohio
State Universitv. Columbus 10,
bank credit plus a
certain factor for growth — but
make
of
cost
merce
sonal rise in
not to
reprint
ness
be of a mind
enough additional cash
the
monetary supply to
into
6
David Robbins—Bureau of Busi¬
put
take
per
Consumer
Lenders
will be held down to something
panic and fall hard off
budget-balancing wagon, if
Indeed
there is any certainty
One
cents
Reserve appears to
to
quantities
at
corporation
speed-up.
Inc.,
Street, New York 17,
(paper), single copies on
more
under pressure. The Federal
are
Education,
to
request;
ing to borrow to meet the added
5%
quarterly
additional
tax
tax payment
Y.
N.
Council for Finan¬
—
Aid
East 45th
now
would
phrey's
versities
cial
the
that
Education: Methods of
Helping the Colleges and Uni¬
Business is booming. Business
is
of
Support
Corporate
To
Higher
well turn out that in
may
1956,
than
more
will gov¬
attitude of both Con¬
the
ern
far
politics
Aids
things will be tough enough.
considerations
fiscal
Treasury
to borrow.
it until
forget about
the
that,
would be embarrassed if it tried
is to
the
1956, then take a look-
well into
see
high
up
and
shelf
in
on
legislation
relief
f
jL %Jlv
Boston, Mass.
Phone HUbbard 2-1990
Teletype BS-69
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