Full text of Commercial and Financial Chronicle : March 1, 1956, Vol. 183, No. 5512

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u

ESTABLISHED 1S39

I*

c

v

i

y

K s 11

MICHIGAN

OF

&AR

1956

2

BUSINESS UMUUSTUIIM

1INHH

Reg. U. 8. Pat. Office

Volume 183

Number

5512

New York

7, N. Y., Thursday, March 1, 1956

Price 40

Cents

a

Copy

EDITORIAL

Economics in Election Yeai Interest Rate Trend in 1956

As
The
new

We See It

"science"

of

economics

has

By CARROL M. SHANKS*

developed

have

a

tion

strange

some

Outstanding insurance executive examines election year
pressures confronting economy and specifies need to
keep monetary and credit policy aimed at national instead

to the older genera¬

appearance

nourished

of its concepts, still

Adam Smith

on

and

the

plied the

and woof of formerly

warp

cosmic
man,

preferred

tal funds

day

conception of man's business relation to

number of

new

of

terms.

They have often

.

or more

has

often

validity
All

heterogeneous aggregates, which, it

appeared to

meaning, '

or

this,

far

so

us,
/

are

of

—

The Present

Situation
Last year the Dean's Day Homecoming Conference was
on March 12, and this same panel tried to give an

held

for 12 months.

appraisal of the interest rate outlook which would last
Committee

.

by

and

gladly leave to those who have the time and the

number of

given

rates under the pressure of a record

level of

ard of

terms which have

new

can

a

prisingly

on

about

intelligent students of what is going
"Gross

us.

National

Carrol

Product,"

Shank*

more

tories

familiarly labeled GNP; "Personal Saving"; "Pro¬
ductivity"; "Private Domestic Investment"; "Per¬
sonal Income"; "Disposable Income"; are some of
the terms

M.

should

note that

pended
State

on

and

people, and from which

well

in

on

SECURITIES
porate

DEALERS

hand.

We

advancing prosperity has not de¬
added injections of government spending.
local government expenditures today are

Continued

Entering
What

a

Period of Calm

is

happening to the tight
money
situation
which
we
were
getting used to and which all lenders

Roger F. Murray

and
investors
were
enjoying immensely? It seems to me that three factors
responsible for the change:

j
are

primarily

(1) The restrictive credit policies adopted last

year were

on

page

Continued

40
•An

•An
cago,

address

by Mr. Shanks before the
Chicago, 111., Feb. 27, 1956,

NOW IN

securities

and potential

tion of the behavior of interest rates.

'

38

page

modest, but obviously "persistently
rising" is no longer an apt descrip¬

sur¬

this

many are very prone to

Continued

money gave
The decline in the

rapid,

remained

bandied about by all manner of

now

half has been

whether measured
by gross national production, indus¬
trial production, retail sales, business
spending on plant and equipment,
personal income, or consumer spend¬
ing. And during this period, inven¬

ing and misleading to nontechnical but serious
minded and

a

mortgage

long-term rates during the
eight weeks has been quite

past

all-time high.
•
economic advance during the
an

for

out in December.

before, and the real stand¬
living of the average Ameri¬

has reached

past year and

proved intrigu¬

demand

ever

The

to

currency

a

than

we

inclination to dissect and pass judgment upon it.
But this "new" economics has

cooperative spirit of your

the

unemployment has fallen to a
low level. Our industries are
turning out more goods and services

aca¬

learned professors,

advancing

on

make it.

very

demic discussions among

In spite of the

date
full two weeks, we did not quite
Truth to tell, our expecta¬
tion of persistently rising interest

running around $314 billion a
year.
There are three million more
persons with jobs than a year ago
now

doubtful

very

it confines itself to

as

natural

I

■

Money market authority sees in the next 3-6 months:
(1) sustained demand for funds by real estate, statelocal governments and non-financial corporations; (2)
consumer credit becoming less active, and
(3) no pro¬
tracted bond price advance. Remainder of the year is
expected to witness upward interest rate reflecting
assumed increase in economic activity.
Mr. Murray
expects, for longer term, a non-secular interest rate range
equaling peaks of 1953 and 1955 and 1954 low.

The American economy has edged over the magic $400
billion
mark;
Personal income is

peared to be devotees of sundry ratios between
two

Consultant, Bankers Trust Co., New York City

(1) excessively

In this early month of an election year we find our¬
selves at a high level of prosperity and business activity.

ap¬

of Business

Graduate School

Columbia University

debt

terms and modifications of the

old

Associate Dean of the

resources pressures;
(2) large
discourages new purchases, and (3)
unpredictable consumer psychology is due to extent of
postponeable luxuries in total consumption. Forecasts
moderate advance in 1956, and deplores failure of con¬
sumers to benefit from
rising productivity.

and in doing so have been obliged to adopt

definitions

and

consumer

accepted

sort of macro-

a

Mr. Shanks finds:

Long-Term

By ROGER F. MURRAT *

high tax rates thwart savings formation necessary to cope
with our system's inflationary bias caused by huge capi¬

sup¬

views about the economic world. The latter
saints in the field have

of partisan interests.

others,

including Marshall, whose basic ideas then

a

a

vocabulary during the past couple of decades.

Many cf its terms, and

And (or the

President, The Prudential Insurance Co. of America

are

REGISTRATION

afforded

undertakings in

a

—

Economic

Club

Chi¬

of

address

by

on

Mr. Murray at the Dean's Day
Conference,
New
York
University; Graduate
School
Administration, New York City, Feb. 25, 1956.

Underwriters, dealers and investors in

page

53

Homecoming
of Business

cor¬

complete

picture of issues now registered with the SEC
"Securities in Registration" Section, starting on page 46.

in

State, Municipal

U. S. Government,

and

State and

Municipal

'

Securities

Public Housing

Van Norman Industries
High

telephone:

our

HAnover 2-3700

Yield

in

COPIES OF OUR

Speculation

Machine

NEW

Tools

Agency

Bonds and Notes

BOOKLET

"INVESTING IN THE

CHEMICAL

Bulletin

DRUG INDUSTRY"

Available

BANK

J. R. WlLLISTON & CO.
eitailiiheo
members

bond

department

30 BROAD ST., N.Y.

ano other

115

new

stock

york
and

■•••

stock

commodity

Beach

—

Y.

Members New York Stock Exchange

120

Bond Dept. Teletypes NY 1-708

ESTABLISHED

1832

securities
Members

of the

Exchange

American

BROAD

STREET

NEW YORK 4, N. Y.

gwUfwedt COMPANY

On

•

PERTH AMBOY

Hoover

DIRECT

WIRES TO

1965

Price

98.80

to

yield 3.40%

Analysis
our

upon

Unlisted

request to

Trading Dept.

DEPARTMENT

Dotti?no?i Securities

IRA HAUPT & CO.
Members New

MONTREAL AND TORONTO

Goodbody
115 BROADWAY
NEW YORK

1,

Company

"A"

Debentures

Payable in United States dollars

Canadian Exchanges At Regular Rates
CANADIAN

V4 %

Due October
All

&

Co.

Corporation
Associate

1 NORTH LA SALLE ST.

CHICAGO

Member

of

American

and
Stock

40

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY

1-702-3

other

111

Exchange

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT




Executed

3

Teletype NY 1-2270

25

0AUA1

CANADIAN
SECURITIES

Exchange

Stock

<Bouthw€At
FIRST

$400,000

City of Montreal

Commission Orders

New York Stock

BANK

34 offices from coast to coast

To Dealers, Banks and Brokers

T.LWatson&Co.

Chase Manhattan

BROADWAY, NEW YORK 5

Net Active Markets Maintained

investment

THE

HARRIS, UPHAM & C°

OF NEW YORK

exchanges

Rye, N.

REQUEST

THE FIRST NATIONAL CITY BANK

exchanot

Broadway, New York 6, N.Y.
Miami

ON

DEPARTMENT

BOND

ARE NOW AVAILABLE

CORN EXCHANGE

Stock

Exchange

Broadway, N. Y. 6

WOrth 4-6000
Boston

York

Principal Exchanges

Teletype NY 1-2708

Telephones

Enterprise

1820

V

and Financial Chronicle

The Commercial

2

.

-..-Thursday,Marchl, 1956

(1C50)

.

.

.

in the investment

blocks ol corporate se¬

ing large

curities,
well

of wires

New York

provides

our

in

15

cities

leading

reaching hanks, brokers and
ers

Corporation

Masonite

—

deal¬

Masonite has

Corporation

Masonite

considered synon-

itself is almost

Established
Associate

there

now

eoston

•

chicago

philadelphia

•

of

75%

industry's volu

san francisco

the

on

Cities

a

j

I

year

this

approximate

I i^rwth stock of Ma30nite's»
dumping

producing companies that will be

American

Stock Exchange
Exchange

Stock

NEW YORK B

120 BROADWAY,

2-7815

REctor

TEL.

primarily

as

board in vdrious

finishes

and

to

from

come

Virginia

Alabama-Tennessee Natural

half have discouraged cut price im-

from

Southeastern Telephone Co.

insulation

board

also

Mason, Inc.

fnd^ hMf

30,

cieased fiom $1 to a $1.20 basis
.

.

■

•

i

and, again, a year end extra givi-

LD 33

62

is furnished by natural
redwood and cedar in

lumber,

particular but the Masonite process
has
tremendous advantages.
These

worth mentioning.

are

Masonite

Botany Mills
Mfg.

terial.

Hydraulic Press Mfg.
Rare Earth

Mining

Strategic Materials

A.

Edison.

iWmeandComporu}

By

removed

of exploding

process

a

only
lose fibers and lignin.
leaving

sending

the cellu¬
These are

hardboard

form

to

used

and

through

solution

a

A series of further

pressure.

v,

^

+

w

a

nrt vt

it

since

Uses

grown

u

-

can

wt n

>v

made

be

from

of

have

policy of keeping the

as

a

and shapes under the

thicknesses

our

following names: Masonite, Presd-

New Offices

wood,

Panelwood,

Duolux,

Peg-

board, Marlite Panels, Temprtile,
Leatherwood,
KELLER BROTHERS
others.

CO.

XDIO COURT STREET, BOSTON 9, MASS.




Turner Valley field, with a canac-

$18 2 million. The company's capi^aj
structure
at
Aug. 31,
1955

tion program now under way the
capacity will be increased to 4 5C0

showed

barrels per day and will include
the installation of a Platinum

$6,338,485 of long-tzrm
minority interests and

and

debt

1,377,563 shares of common stock,
Book value per share was $30.97.

'' "■

equity.

.i

1

CHARLES

easy
a

Panelgroove

material

The

itself

and
is

so

to work that it has become

favorite of builders and amateur
......

,

decorators

who

can

E.

Stoltz & Co.,
City

Anglo American Exploration Ltd.
Permit

to

me

qualify the

Tokyo

Office

Canadian

the

best."
*

oil

stock

a

deal of fiction
w

easily install

complete walls, ceilings or sidings,

analyze
the

a

fully

inS

or

six

still in
Charles E. Stoltz

time

has

rate

I PETROLEUM, LTD.
Common Stock

WISENER

COMPANY

and

LIMITED

73 King St.

/

West—Toronto, Canada

Established

1856

H. Hentz & Co.
Members

American

'

Btocx

and

Inc.

Cotton

other

N. Y. Cotton

Trade

of

Board

Orleans

New

Exchange

Excuau^e,

Commodity
Chicago

Exchange

Cotton

York

New

Exchange

8to„a

York

New

Exchange

exchanges

Exchange Bldg.

NEW YORK 4, N. Y.
Chicago

•

Detroit

Miami Beach

• •

Hollywood. Fla.

•

Pittsburgh

Coral Gables

•

Beverly Hills, OaL

Geneva, Switzerland

Amsterdam, Holland

IN0f/>

-saving^

petroleum prod¬

through marketing
has
risen steadily from.

sold

of

market

value

21,468,000 gallons had
value
of
$4,806,000

to a sales volume of
gallons with a market
of $4,560,000 for the same

months

period in

1954.

withstanding the highly

Not¬

competi¬

N.Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
14-Year Performance

of

35 Industrial Stocks
POLDER

ON

REQUEST

National Quotation Bureau
Incorporated

tion stage because

accelerated

19,898,000

operat-

®

an

compared

success¬

DELHI

CANADIAN

1956.

volume

companies

now

at

gallons in 1954. During six months;
ended
June
30,
1955 the sales

f

—

^

^ u ..

outlets

to

Trading Market

Maintained in

the Province of Alberta; 302 in

33,475,000 gallons in 1949 (pred¬
ecessor
company)
to
46,900,000

the
o

Firm

by

The volume of

has

potentials

Bankers

the Province of Saskatchewan,257

ucts

less

difficult

,

service sta¬
acquired
developed a remarkable dis¬
tributing system in the past two
years as evidenced by 512 outlets

oil

it

become

petroleum products
automobile accessories

of

handled

during

properties the
past several
years
Fortunately,

70 Branches

N.Y. 6 COrtlandt 7-5680

and

outlets

been writ-

nadian

as

"I of the total are companv owned;
great5 160 are company controlled.4-1 A w A 1
The
©
X
aw AV.
A J /J i
company plans to open additional

that

Many facts and a

1897

—

Investment

&

The company has

tions.

title'

article by stating this is

°£

well

usually

STOLTZ

Senior Partner, C. E.
New York

brand

99"
as

ten about Ca-

board

Masonite

steadily and benefit by the
low as possible. It is sold
wide
variety
of finishes,

price
in

twigs

or

company's

When in Boston

IVstyp. BS-630

1955

really wood made better—cheaper lik
4-/\rt
■! 4#9
X'

branches

Telephone Richmond 2-2530

The

working capital at Aug 31, ity of 2,500 barrels per day. Unwas relatively strong at
der an expansion and moderniza-

panels

sawdust, wood chips, even stumps,

»

Balance Sheet Aspects

Saskatchewan

als0 owns and operates a
at Kartell in Southern
adjacent to the prolific

Net

giant presses using enormous heat

too

o)

has

Xd arc

capable of produc-

or

ancj

refinery
Alberta,

1936.

chips, undesirable elements
such as knots and impurities are

steps produce hardboard which is

1929

Tel. HAnover 2-4850

visit

th^coninanv

oil wells

lppcpc
anH
fprmrmt<? in
of leases and farmouts in

company

wood

by

ESTABLISHED

an

was

vears

catalytic refining unit, which will
Attracted by the waste of huge
raise octane of the finished prodquantities of wood burned by saw- ihe market, therefore, places a net above competitive requiremill operators, he sought a way to
premium of'only 20% over the ments. The company refines and
utilize
this
abundant
raw
maactual
amount
invested in
the markets the well known "Purity

Trading Markets

Haskalite

Thomas

of

associate

who

Mason

of

invention

the

was

H.

William

,

Established
Home

nf

_rpfi

acres

Aiberta

dend is expected. Some dividends
for have been paid each year since

and not good
purposes.
Some com-

decorative

petition

Lynchburg, Va.

37 Wall St., N. Y.

Securities Co., Ltd.

business of prospecting acquiring
and developing oil ana natural

price than Masonite products but

Scott, Horner &

.

to engage in t. e

$6 a share for the
{oilows: 32 wells in Alberla
fiscal year to end_ Aug. 31, 19j6. jn ^Qur of which the company has
Dividends in 1955 totaled $1.50 „ benefidal interest- 46 in Sasincluding 50 cents extra payment katchewan on behai£' cf itsel£ or
plus 2/. in stock Since then, the subsidiaries and exploration and
^6^
regular dividend has been "4. ; development operation on 21,000
"5=" m,

lower m

is

iya

'

,,

,

? -J?!e. ?iPYlllce 0
.

^ PC« J! l ! tZ <L producing

w

write

or

Yamaichi

of

eco¬

Exploration

^

of $5.25 to

.

it is very porous

,

rose*jj5 ^velopti

5?«

11 om

.

?n

Earnings
rose
from $2.67 a share in the
1954 fiscal year to $4.42 in 1955.

ports of hardboard.

Structural

—

in¬

_

expensive

advantage.

tremendous

Anglo

of profits.
Penalties imposed by tne Federal Government

uses

gypsum's

its

and

vitally
growth

Ltd. was^ incorporated under the

racis
this extra labor cost detracts

Gas Company

future

in recent

than plywood but
today are lower in price. They
compete with gypsum, which is
cheaper but must be finished and
more

Canada

is

Ltd.

the

industrial share

boards formerly were

Masonite

Air Control Products, Inc.

in

the nomic potential.
full
American

ently satisfactory.
In 1955,
Ukiah mill
contributed its

in construction and in the home.
It is
used in
furniture, boxes, office
sales

of

Exploration

volved

Labor relations are now appar-

sizes, thicknesses
the building in-

that today less than

years

panies in

producers.

supplier of

a

applications.
Trading Markets

Tele. LY

Call

comparison with the best oil cornCanada. Anglo American

in

equipment, partitions, TV sets, of- In the 12 months ended Nov.
fiee walls, and a host ol unseen 1955, earnings,

Bank of

appear to be stirring due
improved Japanese economy.

For current information

^sc'u£®ecl, later in this analysis.

hardboard

practically

at

now

to

oil company

million,

domestic markets by Scandinavian

has been consid¬

dustry.
So many new
uses have
been found

Memoers

of

some

The company

l^icPONNELL&ra
York

remaining

stationary levels for three years

Anglo American Exploration Ltd.

erratic due

$60

Earnings have been

STOCKS
after

reasonably assured because of
growth possibilities and by reason
of mnerent stability company is
or special
circumstances. Such a

distribution)
ended Aug. 31, with substantial stock ownership
year will prob- m
several excellent crude oil

Sales

Company Position

branch offices

our

JAPANESE

111 Broadway,

ered

New

wires to

total

Specialists in

Since 1917

I

Direct

Brokers

RIGHTS & SCRIP

NY 1-1557

La.- Birmingham, Ala.
Mobile, Ala.

due 10 insufficient funds.

company s
now

Earnings

ably

J. Walter Leason

73

Exchange
Exchange

New Orleans,

l0okio™for fosier"parents
^ oDerations en£relv
tl^Zsuffirientfund*
y

grown

1955.

at

sells

37

Mahout

fiscal

the

of

price

American

HAnover 2-0700

from $16.5 —a fully integrated
in 1946 to $54 million in (production refining
have

million

Exchange and
at

New

Members

19 Hotter St„ Hew Y»rt I, N. Y.

Africa,

acre,

an

Sales and

Sales

New

Stock

York

$125

listed

is

stock

Stock
8tock

York

Members

acres,

T h e

e.

m

Steiner,Rouse&Co

New

i

these holdings
are
worth $35-$44 million or a
range of $25 to $32 a share.

and

does

still

about

York 5

Teletype NY 1-40

Private Wires to Principal

Corpora¬

e

tion

Exchange

'

j

compe¬

i t

Co.,

&

(Page 2)

most of which is
in Mississippi and the balance in

tition, Mason-

1920

120 Broadway, New
WOrth 4-2300

is

some

Member

Stock

American

351 200

holdings

timberland

Although

Corporation

E.
City.

In a period of active business
and high stock prices an investor
should look for a security selling
Northern California near the re- substantially
below its intrinsic
spective mills. Based on recent value—the stock of a company
timberland sales, at between $100 whose future earning power seems

hard b oard.

New York Hanseatic

the

needs,

pulpwocd

with

ymous

Stoltz

C.

ner,

York

Australia and two in Europe. .To
control part of its timber supply
and maintain a reserve for future «r

pioneer in the hardboard industry and, in fact, the name Masonite

throughout the country.

—Charles E. Stoltz, Senior Part¬

In addition;.
five foreign licensees

located in Canada, South

a

was

Bought—Sold—Quoted

Anglo American Exploration Ltd.

California.

at Ukiah,

clients with primary

markets

Timberlands

plant and a new one

Mississippi

City

Walter

Institutional
Dept., Montgomery, Scott & Co.,
New York City. (Page 2)

centered

Montgomery, Scott

v*;

Manager,

Leason,

company's production*' is
in its principal Laurel,

The

Institutional Dept.
& Company

Manager,

needs.

serve your

Our nationwide network

Production and

LEASON

J. WALTER

will find our firm

you,

equipped to

they to be

Corporation—J.

Masonite

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

(The articles
•re

specialists in buying and sell¬

~

Louisiana Securities

for favoring a particular security.

participate and give their reasons

Financial Executives
As

Their Selections

which, each week, a different group of experts
and advisory field from all sections of the country

Alabama &

Participants and

Forum

A continuous forum in

Attention!

Week's

This

I Like Best

The Security

Brokers, Dealers only

For Banks,

tive market Anglo
afforded

American was

definite

comparisons. Many were nothing

Continued

on page

14

46 Front Street

•

New York 4, N.Y.

Volume

Number

183

5512

.

.

'

I

The Commercial and Financial Chronicle

.

Stock Market Outlook in

Articles and News
Election Year—Carrol M. Shanks

an

By HAROLD X. SCIIREDER*
Distributors

Group

Interest Rate Trend in

Incorporated

bull

nor

required to fill the

;

increased output

v

The

!

demand, the next decade is expected to wit-

$50-$55, dividends from $21 to $30-35; (2)

normal trend value to rise 700

of stock prices;

,

or

(3) inflationary

stock's

average

and (4)

pressures,

—David

In

out"

—

(for

the

Today is

market

in 1956).
But what
does

which
but

that

mean?

In

is

of

neither,

rather

bull

which

delightfully
ambiguous

thesis today, s® let me try. to

language,

current

words

mean

market

many

things,

often

and

posite

what I

you

things.
The

if I say to my

motoring

X.

Harold

Schreder

—

in the road."
should

countryside,

that

I'm

delightful

a

however,

"lookout!"

to

—

holler—

I

warn

impending crash, I

him

of

haven't

screaming

am

is

be

to

caster"—just

use

fore¬

"good

a

lot of multi¬

a

ple-meaning words and interpret
them

fit

they

as

subsequent

events.)

shorten
have

and

short,

clarify

my

brought along

to

so

words, -I

few charts

a

which I hope will make my

posi¬

tion quite clear.

Those
who

of

know

in

the

audience

best, know that I

me

just "can't stand" the popular hot

cold, love

or

approach

hate, bull

or

thinking

to

stock market.

"go

Just

living"

on

spite the

as

bear

or

the

about

people must

intelligently

de¬

flow of life's

ebb and

daily events,

must money "go

so

working" intelligently despite

on

the ebb and flow of daily invest¬
events

ment

Future IS

(political—or other¬

in

of the

market

through

as

of

rather

address

Dean's

of
than

by

Mr.

Character
bull

that

'

"

WASHINGTON

____________

17

,

RARE EARTH MINING

18

__

26

'

30

Role of Faith and Bulldozers for Greater Economic Progress

Fairless___

32
*

J. F. Reilly & Co., Inc.

*

42

Chamber of Commerce Committee_____

Incongruities of "Welfare
Trust

Co.

Broadway, New York 4

DIgby 4-4970

14

____

that

pleased

l___

16

■

,

-

;>.

-

.

:

Corpus Christi Refining

-

,.

Company

administration,

nessmen

—and

and

certainly

days,

curbing

their-

Bank

the

(Editorial)

and

Insurance

Stocks___

they

appetites

Dealer-Broker Investment Recommendations.

Einzig: "Anti-Inflation Paths: Consumption

Rare

8

Investment?"

or

2!K

month
line

it

is

period

between

—let's

just

only

Bargeron

in¬
Indications

are

of Current

Business Activity..

5 Mutual Funds
News

the

for

About

and

short

19

May

,

5

,__

and future

quick

a

look

Public

our

Railroad

and building

economy

Utility

ous

40

Philadelphia

Exchange Pl„ N. T.

*

to

Chicago * Los Angeles

22

__.

Securities

:

Securities Now in

41

Registration______

HERE'S V/HY ALL EYES

46;

great strength for its prosper¬

up

more

Teletype MY 1-1825 & 1-4844

52

Securities

in

securities

at

the powerful driving forces work¬

ing in

Request

markets

over-the-counter

HA 2-0270

22

curvilinear

past

our

Reporter's Report^..

Governments..

on

350

trading

Direct Wires

10-

the

on

take

Our

remember

Reporter

on

Singer, Bean
& Mackie, inc.

42

___.

Bankers-__________

Our

Circular

maintain

than

45

__j.___.__

Banks

Mining Corp.

12 *'
We

Observations—A.' Wilfred

a

•

Strategic Materials Corp.

To get the rest of the year 1956

actually

Earth

*

From Washington Ahead of the News—Carlisle

clearly-delicious future.
into proper focus—and

>

Mines Co.*

20 ;

intelligently

and

Leaseholds, Inc.

Cover '

busi¬

nation's

rather

It

area

govern¬

our

See

Pacific Uranium

going "hog wild"

but

soberly

As We

people generally

our

vestors—are not
these

Regular Features

greatly

am

sound

our

Teletype: NY 1-4643

State" Policies Cited by Guaranty

"Survey"

the

representa¬

I

rw"

'

PARKING of

Return to Gold Coin Standard Opposed by New York

(and I think I

economy),

our

'tv

16

_______________________

V

about

generally represent that vital
in

*

PIGEON HOLE

we

ARE
Prospective

future.
Our Bright Future

and

As I mentioned

Security

Offerings

NOW

ON

51

like

machines

York

University,
New

and

of; other¬

wise

they mildew,

The

scholarly audience certainly

City,

Feb.

rust,

.

.

.

and

Corner.,

17

You—By Wallace Streete_____'

must

This

School

Salesman's

The Market
men,

care

before

Graduate

York

Securities

Security I Like

Best.

on

page

The State of Trade and Industry

56

Twice

Weekly

1

Drapers'

»

25

BROAD

WILLIAM

TELETYPE N. Y. 14

•

B.

Park

•

Nashville




Boston
•

•

Chicago

Schenectady

•

•

Glens Falls

COMPANY,

DANA

Place,

New York 7,

2-9570

to

Reentered

Publishers

ary

Eng¬

C.

25,

Can Old

Hickory Copper!
Duplicate Maiket ; i
Performance

second-class matter Febru¬

as

1942,

at

WILLIAM

March

Thursday,
Every Thursday

and

vertising" issue)

1,

(general
every

Subscription

1956
news

<

Monday

(com¬

issue —market quotation
records, corporation news, bank clearings,
state and city news, etc.).

Worcester
Other

Offices:

HI.

135

South

La

Possessions.

Salle

St.,

(Telephone STate 2-0613);

in

office

at

Territories
Union,

Dominion

Canada,

Other

of

Bank

$40.00

and

per

Note—On
♦h*>

re*®

of

per

$63.00
per

year;

per

wi'hunot

of

•

Send for FREE

Report

-i

year.

year.

Record

the

Copper?!

in

.

Monthly,(Foreign postage extra.)

account

of Lewisohn

8.

Publications

Quotation

year.

U.

Members

and

$60.00

Countries, $67.00
Other

States,

!'•

New

Rates

United

Pan-American

and ad¬

statistical

Chicago 3,

post

N. Y.

SEIBERT, President

DANA

the

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

9576

SEIBERT, Editor & Publisher

HERBERT D.

plete

Albany

E.

Copyright 1956 by William B. Dana
Company

Subscriptions

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

i

Reg. U. S. Patent Office

REctor

Members New York Stock Exchange

London,
Smith.

&

!

25

Spencer Trask & Go. :i

Gardens.

Edwards

c/o

and

CHRONICLE

FINANCIAL

CTflPlfC

lIlLrLnllLU OlUOltO

COMMERCIAL

High
^ -j j

■

.

34
land,

specialized in

Moved From $1.50 to $10
'

Published

DDCHDDrn

Recently Lewisohn Copper

5

»

The

have

Hickory Copper

2

Washington and You

25,

Continued

For many years we

15

and die.

knows its American economic his-

r

Old

earlier, money,

Conference,

Schreder

Day Homecoming

Business,

1956.

V

Gulf Coast

one

as

work and be taken

New

t

I

[

13

State Sovereignty—Hon. Herbert
Brownell, Jr.__i

vs.

1929)—because the

tive of Wall Street

gradually going

series

a

Changes

*An

•

12

I like, therefore, to think

wise).

the

,

PARKING of TEXAS

SO Bright!

Certainly,

quite

you

"crazy"

gone

(as

ment

is

time

Today,

the

rejoice

*

.

to

But, how many tears
Frankly, I think

should

we

10

an

(Now, you all know how

it

easy

v

shed?

we

future

"bear."

Federal

stock
market and in business that began
late in 1953 appears — for the
present—to have come to a "fork

"lookout"—to

PIGEON HOLE

1

*

booming rise in

call his attention to the beautiful

If,

Road

-

9

____•

Prosperity

Specifically,

"bull."

the

_"

Investments—Forest Watson__

as

—Benjamin F.
in

1956—Fork

op¬

companion

show

for today's investor.

means

Currie

Problems of the Domestic Mining Industry—Andrew Fletcher

what this
change in the

character

6

Johnson.

O.

Gold Shares

and

mean,

STREET, NEW YORK

Upon American Industry

•—Roger W. Babson__

is

clearly in the midst of a healthy
Character
Change.
This is my

our

call.

.your

Obsolete Securities Dept.
WALL

99

Educational Cost Reduction and More Efficiency

market
nor
bear,

market

a

M.

—Ralph S. Stillman

,

stock

a

Wall

to 99

N*

Unparalleled Opportunities in the Latin America, Market

perfect example, in

a

opinion,

my

over

waiting for

4

The Business Outlook: 1956—Ezra Solomon

because that is
word, I could easily an¬ bear markets
question implied in the what a carefully analyzed record
title of my remarks today by re¬ of the securities market shows to
versing a word and saying "Look¬ be true.
the

stock

is

•

Attractive—Herbert F. Wyeth

Rockefeller

—Norris

a

4

Short-Term

and

Long-Run Interest Rate Trend and Currency Inflation

are

expected in 1956.

swer

Stocks Currently

—Lauchlin

$550

Moderate - tax cuts and eased credit

ing and savings.

Cash

Financial Institutions' Role in Underwriting Economic Growth

billion output wLh high levels of employment, income, spend¬

.

Cobleighi.-

—George T. Conklin, Jr.__'_

Nuclear Science Impact

with possible doubling

more,

Jack jump
..

3

Outlook for Interest Rates: Long-Term

Rail

trial Average stocks, to increase from present $36 per share
to

Jack Be Quick

Cover

Telephone:- WHitehall 4-6551

(1) corporate earnings, measured by Dow Jones Indus--

ness:

.

,

Jack Be Nimble

1

Norwich Pharmacal Company—Ira U.

between labor shortage and 50%'

gap

Cover

—Harold X. Schreder

from market foremost leaders to

j

"■llCHTtnSTfll!

and for the Long-Term

Stock Market Outlook in 1956 and Next Decade

Mr. Schreder terms stock market neither

bear in its present

"character change" shifting phase
less,advanced, more staple
type of stocks. Propelled by increasingly large capital outlays

...

1956

—Roger F. Murray

Investment expsrt expects high 1956 cutput, and a prosperous

oncoming decade.

.

Page

AND COMPANY

Economics in

Vice-President,

(1051) * 3

.

INDEX

1956 and Next Dicade
Executive

-

/

t

GENERAL INVESTING CORPtl

—

fluctuations in
for

for.

elgn subscriptions and advertisements must
be mads in Nev York funds.

80 Wall

Street, New York 5, N. Y.

BOwling Green 9-1600

j

The Commercial and Financial Chronicle
4

lion—more

Norwich,

u-

,RA

Enterprise

COBLEIGII

Economist

of a pharmaceutical company with an
honored name, some well known products, and an interesting
future in a new field of ethical drugs, detected by research,

The
very

ical

field

traditionally

has

and

made

been

of two divisions—
proprietary

up

ethical

and

The
proprietary

drugs.
lines

far

are

better
since

known,

they in¬

shall

percentage

shortly touch upon. But
little
corporate
back¬

a

ground.
Norwich

-

built up on

was

some

solid

selling, well advertised pro¬
prietaries—to wit, Pepto-Bismol,
Unguentine, Amolm, Norforms and

going product list, net sales have
shown a pleasing upward curve

slanted

buy at

any

drug store
without bene¬
fit
U.

Ira

Cobleigh

of

doc¬

a

the

of

fore¬

(and without set¬
back) from $9.31 million in 1947
to $24.83 million for 1955.
This,
in
itself, is pretty solid tribute
rising steadily

you

tor's prescrip¬

them

see

to effective

tion.
can

do not wish to dwell on the past;

Not

only

counter dis¬

on

it's

the

play, but, if you have a radio, a
TV set, a daily paper or a mag¬
azine, it is virtually impossible for
you to have escaped a knowledge

tion

But we

intrigues

that

us

here.

of their many

management.

future

virtues—so great is
the ubiquitous persistence of ad¬
vertising.. Products such

as Vaporub, Bromo Seltzer, Bisodol, Bufferin, Ben Gay and Unguentine,

for example,

caped

surely have not es¬

Nine years

the Eaton Lab¬
of
Norwich
formed for research, produc¬

was

ago

division

oratories

division

ethical

of

sales

and

drugs.

has

prospered —in
fact the day may come when the
tail will wag the dog. (Eaton .sales
were up 44%
in 1954 over 1953.)
The main propellant in the Eaton
This

Products, Bristol-Myers and Sterl¬
ing Drug come to mind as leading

proprietary drug companies, with
long histories of sustained earn¬
ing

ethical drug lines—special doctorprescribed cures, remedies or pre¬
ventives, usually protected by pat¬
ents. This expansion into the eth¬
ical field is generally animated by
a

variety of

the

part

of

reasons—a

desire

on

to

management

versify, better and broader

di¬

use

of

existing sales outlets, higher profit
ratios, freedom from competition,
corporation prestige, and the basic

for

the

special

consideration

Norwich Pharmacal

today,

Company.

Five years ago, ethical items ac¬
counted
net

for

sales.

but

15%

of Norwich

the picture in

is

as

Of the

success

Norwich

mentioned,
reach

ings which
in

1955

for

$3.75

above

per share
projected at

being
this

day, once again the basic situation
has materially changed from that

the
for

Since

year.

creasing interest rates in 1955. T«-

demand

policy has been to pay out
around 60% of net to sharehold¬

funds

ers, a

boost in dividend from $1.60

195 4,

(the

present

rate)

was

$2

above

to

a

record

new

set

in

a

at

ago

year

into

go

we

let

situation,

little

a

this time. But
this prospec¬

us

review

1955

for

cer¬

carefully,

more

tainly the year 1955 will go down
money
market
history
and

in

there
striking

a

of

before
tive

long-term

NOR

theory

as

most intriguing year.
a year ago that in
'
-

a

or

wastes and by

2-for-l

case

don't

you

products of Quaker
Oats Company, including, of all
things, corncobs! When properly
modified and treated, furfural is
transformed

antibacterial

into

drugs something like an antibiotic

sulfa, but believed to create

a

or

less

and less

reaction,

furan

Altogether

rapid
some

im¬
700

being re¬
searched by Evans in its new $1,300,000 laboratory.
Furadantin
was the first systemic
nitrofuran
(introduced 1953) fand has been
exceedingly well received.
Furacin, another related product, is
compounds

are

does

not

seem

Speaking

bility.

Norwich

was

unreal

an

of

4-for-l

is

this

—

s

funds

of

Norwich

has

consistently good, with ma¬
jor funds used for expansion de¬
from

in soluble dressings, ear and

rived

solutions, animal feeds, and

than

burns

comes

and infection.

More

about
on

tested

to

This

dramatic

treatment

disease.

drug

of

believed

is

high,

and

estimates

1957, have

to

possibilities -for
least

at

one

major

Optimism about this

is

official

and

undergo clinical testing

people.

have

animals,

on

run as

investor

of

entirely
its

high

new
un¬

sales,

as

in

$20 mil-

to

pleased

at

only

4

points lower,

direct wire service

half

of

'In
.

an

is

era

situation

NOR is
and poten¬

with

another

or con¬

drug or¬

1954

of relative

market

money

a

year

1954

increase

that

ena¬

Personal savings would de¬

(3)
cline;'

(4) Short-term credit demands
more

would

banks

the

on

and that the

policy of the Federal

Reserve would become one of ac¬
tive

restraint, then I am sure most
of the
money market

students

have

would

predicted

very

a

sharp rise in long-term yields.
Actually, however, 1955 was a
period of only moderately upward

the long-term public

pressures on

bond market.

yield

Aaa corporate bond

for example, .in¬

averages,

creased

about

from

m

2.87%

at

1954 to high of about

1955, and

last year

2.97%

as

early

February

as

had already increased to
that

so

there

only

was

ahead

decline

by

for
but

a

ac¬

in

the

short-term

funds

creased

by

sharp

in

such

a

very

demand.

Conse¬

picture outlined at
for gradually in-

was

the

in

1955. In

of

balance

government market, yields in¬
1954

from

to

a

3%

low of
a

year

about 2.66
ago

at this

time, and at the year's end the 3s
still

selling on approximate¬
3% basis.
How then can we account for
this seemingly surprising behavior
were

ly

a

.

*An
at

the

ence,

address by Professor Conklin, Jr.,
Dean's Day Homecoming Confer¬

York

School of Business Ad¬
New York University, New

Graduate

ministration,

City, Feb.

25,

1956.

of the

long-term bond market in

Continued

on

page

that stock prices are the slaves

of
Norwich
Pharmacal common may prove to
be a mounting market minion.
earning

We

then

power,

are

pleased to announce that

MR. WILLARD C. BASTIAN
Vincent T. Mahon Opens
Call Fred W.

Vogell for quotations

I

HOUSTON, Texas—Vincent T.
Mahon is engaging in a securities

on

business from
All Western securities and URANIUM stocks.

offices

in

has

joined

our

Trading Department

the Rice

Professional Building. Mr. Mahon
was

formerly with FIF
Corporation.

Manage¬

ment

GLOBE SECURITIES CORP.
40

Exchange




Place

New York

(Special to The Financial Chronicle)

COLUMBUS,
BOwling Green 9-0636

J. F. RE1LLY & CO., INC.

Two With Merrill Lynch

5, N. Y.

Brick

Ohio—James

Russell

W.

rill

Lynch,

42

Broadway, New York 4

A.

Rowan, Jr.
have become affiliated with Mer¬
and

Pierce,

Fenner

Beane, 48 East Gay Street.

&

a

funds,

new

If there is any truth in this theory

American Securities Company of Colorado, Denver

the

3.18%

ganization,
whose
products
it
would complement or supplement.
to

by

necessitat¬

ing the liquidation by the banks
of over $7 billions of governments,

in

at this time

ago

increase

than $16 billions,

long-term

in

time

of¬
term

further increase of 21 basis points

the

quently

-

record de¬

demand
in

long

of

not

for

companied
as

billion

year.

of certain

was one

when the urge

strong,

so

result

a

year

a

contrast, the prospective 1955

the

in

their

1955 Reviewed

seems,

paying much attention to them;
(2) NOR has good patent pro¬
tection, with which to fend off
competition; (3) it is spending
$% million a year on research;
(4)

the

1954;

over

$2.7

low

mands

merge

was

the

in

(1) it was smart enough to enter
nitrofurans when nobody else was

and

increasing

interest rates until the
situation changed in the second

its historic high. Norwich,
which sold last year at 54, and is

however, to be attracting buyers
not only by its upward curve in
sales and
earnings but because

their

clining

or near

now

govern¬

put

billion- As

$5

ease

it

stock

a

to

conse¬

bling the financing of record longterm
demands at gradually de¬

amount

when

reluctance

purchasing

solidation

to announce

and

depreciation

the

to

market

work,

generally

plowed back earnings.
There is always a certain

to

and

holdings of governments by more

been

nose

resorted

bond

ment

could

banks

increased funds

quently

'

position

commercial

outlets in bank loans for

not find

their

increase in

net

issues;
G. T. Conklin, Jr.

con-

the

that

standing shares for Vick Chemi¬
cal, 4,368,513 for G. D. Searle, and
4,844,000 for Smith, Kline and

of

the

36%

fer

e r m

change in Federal Reserve Policy
to one of monetary ease, meant

common,

used

veterinary medicine; and, in gen¬
eral, for treatment of wounds,

t-t

o r

,

The

(2) The government would

sequent

listed
NYSE (and now selling at 49%).
This compares with 1,528,000 out¬

Cash

h

with

After

$2,220,000 of debt, the entire
equity is represented by only

French.

the

funds, coupled

rela¬

a

but

shares of

result

a

known

we

(1)

demand for

of inter¬

tively small capitalization.

920,208

in

decline in

split in 1939.
investors

to

funds,

1925, and there
split in 1934 and a

Another consideration
est

possi¬

since

year
a

decline

has done pretty

presently attractive,
tially more so, for merger

a

Last year I contrasted the pros¬

pective situation in 1955 with that
of 1954, and found the two situa¬
tion
sharply different. Whereas

$3.01

were

are

and not lack

opportunities.

to

this year with its existing product
list. Not only that, but net earn¬

to

are

of investment

total

sales

year.

happen to know what that is, fur¬
fural is made from agricultural

They now account for

We

be gradually upward due to savings limitations

item above

expects

million

$30

a

new

its
of

level ahead of last

non-cyclical long-term interest rate outlook should

of the business

selected

company

Bright

ethical drug section, regardless
the

and adjustments averaging out to a
Asserts the

recession. This

in

Now

already

with

Smith,

French.

Kline &

buying to

any

each

whole

pain and restoring health.

is

and what Thorazine did for

(6) banks concentrating

they became net sellers of governments. Pro¬
fessor Conklin assumes an excel!ent 1956 with consolidations
as

mort¬
gages would amount to some $17
billion, an increase of $4.5 billion,

a

humanitarian motives of relieving

it

short terms

short-term

derives from

curve

importantly, however, Ea¬
ton has developed and researched
a
new
major
nitrofuran
drug,

In fact,
among pharmaceutical enterprises,
the increased emphasis on ethicals
is quite pronounced.
So, indeed,

and bank loans, and

witness what Dramamine
and Banthine did for G. D. Searle,
power,

dividends,
well by
its stockholders in years gone by.
Cash dividends have been paid

sales

munity.

power.

Increasingly, however, compan¬
ies famed for their proprietary
drugs are entering or expanding

r

of increase reflected in reduced short-term market pressures

dra¬
corporate earning

on

changes;

1955

series of drugs manufactured from

American Home

matic effect

successful

a

high margin and pressures, with no material inter¬
(5) a lowering in business activity rate

same

rate

est

Had

furfural.

income increase.

by the

the middle of this year.
of

with easing terms and substantially same
(3) unchanged cerporates, state and local net

demand; (4) demand exceeding long-term funds, though not

expected to be placed in produc¬

by

greater

the

in your own

medicine closet right
now.
Well, they're all proprietary
drugs and they all seem to keep
on
selling year after year, usually
in increasing volume as our pop¬
ulation grows and levels of family

supply

line .is

drug

new

(1) long-term market demand somewhat less

year:

demand for

notice; fact is, you'll
probably find at least one of them
your

the

and

year,

introduction

cally

-

University

authority perceives in 1956, compared to the surpris¬

interest rates;

150 in the past

to

men

wonder drug can have a

manufacture

items you can

of America

Company

heavy; (2) mortgage demand not too muck lower, and credit

detail staff of Evans Laboratories

from 100

new

ficient

trade-

Finance

ing 1955

antibiotics as penicillin. Norwich
certainly has confidence in its ni¬
trofurans.
It has stepped up the

The

fare.
By smart merchandising, and ef¬
other drugstore

marked medi¬

the

New York

profit margins in such

cough

saccharin,

lotion,

basking

and

of

most

reduced the

tion

syrups

clude

Life Insurance

Adjunct Professor of Finance, School of Business,

develop them without the in¬
cisive competition which heavily

aspirin, sun

To these add

Ocusol.

Financial Vice-President

Guardian

The

patent protection
on
its
products in this field; and thus

should continue to rise for reasons
we

By GEORGE T. CONKLIN, JR.*

can

nearly 30%; and this

first,

—Long-Term and Short-Term

this

at

broad

protected by patents.

pharmaceutical industry is
special branch of the chem¬

The Outlook for Interest Rates

time; but this much
can
be said.
Norwich has pio¬
neered
in
nitrofurans, and has

appraisal

and

as

Accurate

sible

1956

A

of

sales

total

than

recently as 1953.
conjecture ' of
sales
ana profits from this new source
(and from two other promising
new drugs) is, of course, not pos¬

Norwich Phaimacal Company

a

Thursday, March 1, 1956

.

.

.

(1052)

^

..Teletype: NY 1-4643

DIgby 4-4970

38

Volume 183

Number 5512

The Commercial and Financial Chronicle

...

(1053)

/F

1939-40,
on

Steel

The

Production

Carloadings

Commodity Price Index
Food Price

and

Auto

Industry

tions and
in

is

market

the

mills

are

struggling to

with changing condi¬
endeavoring to avoid placing themselves
cope

trade
the

to stimulate greater
pressure from other industries.
mills in the uncomfortable

position of accepting

Some mills

two years,

over

turning

down

is

business.

Others

orders and

-

*

•

*

which"

■£

,

C

.

*

season.

Meanwhile, unbalanced inventories have been playing havoc
industries, particularly construction.
For example, a
large project halted in mid-December for lack of fabricated
structural finally got underway again last week when the
de¬

or

service,

of

maximum

two

used

layed

order

filled.

More delays of this!; kind will
happen
Shortages of structural and plate will get
no better as the construction
season gets into full
swing, declares
this trade authority.
Apparently there has been no significant buildup in inven¬
was

unavoidable

of

bonds

may

crop

demonstrated

flota-

Ohio.

There

of

which

mated

a coverage

L

May

h

e

m

a

Brothers

n

are

the

three

run.

All

tories.

The mills keep a running check on steel stocks to avoid
being caught by surprise as they have been in the past. But
they have uncovered no danger signals to date.

The scrap market may be
nearing a leveling off stage. Defi¬
signs of strength are showing in some areas. The market
is holding firm, in most centers. Steel
firms, with nearly all avail¬
able blast furnaces in
operation, are privately worried about
a possible
scrap upturn later, should they not be able to maintain
a
high blast furnace activity to minimize dependence on
scrap,
concludes "The Iron Age."
nite

Production

round

collecting only

behind

1955,

The

car

said

in

cars

"Ward's

the

United

is

running

16.8%

The difference

the

at

current

rate

of

production

working days, "Ward's" noted.

The

production for February is expected to reach
557,350
decline from January's 611,190 unit total.
All
look for drops from last month's output — Chrysler

car

8.8%

an

companies

25.6%, Ford 10.7%, General Motors
and

States

Automotive

Reports" on Friday last.
count this year, said the statistical
agency, is
completions, compared with 1,304,504 at the same

period in 1955.

units,

1.4%

and

American

Motors

Studebaker-Packard combined 20.8%.
Last

week's

building

car

is

at

124,453

units—

building,

however, continues at a rapid-fire tempo.
Truck companies have built
192,679 vehicles so far this year, a
significant 27.5% more than the 151,114 units made
during the
same

eight-week

span

in 1955.

the past week's company
scene, Chevrolet tasted its first
slowdown of the year as
four-day activity prevailed at plants in
N. Y.

Mich.;
The

Janesville,

reason

was

desired levels.

A

Wis.;

Norwood,

Ohio

and

Tarrytown,

to balance out
return

to

a

January-February scheduling
five-day operation is scheduled

to take place this week.
Ford

activity
down

division

at

on

last

various

week

plants,

scheduled

while

two

three, four and five-day
Mercury facilities were

Friday last.

Studebaker

I

worked

five

days the

In

Canada,

cars and

Steel

last

week's

production

was

expected

to

reach

1,226 trucks.

Production Scheduled at
Level of

Steel

as

Willard Baslian With

Yet

.80%

J. F.

of

a

Fractionally Lower

98.4% of Capacity This Week

can

sored and

as

as

medium.

a

Es-

on

page

44

direction

of

government

on

request'

Go;

10 State Street, Boston 9, Mass.

and

Incorporated

n€f5f'
There

Telephone CApitol 7-4235




-

Bell System Teletype

v

BS 840

the

minimum

Services, is realized for the first
twi° operating years, the bond reserves

which

debt™e^
_f

the

of

usually

consulting

are

.„

.

,

will

Willard

*

.i..r0p.

•

will

be

New York City.

The

prerequisite of exhibitors'
contracts, with the creation of a
backlog of reserves, makes the
Florida project a business proposia

business

panies among the

To Hear

George E. Spargo, General Man-

used

tractsfwilf
buildings and fa-

Tunnel

investor

offer

several

ities.

The

these

unusual

income

extraordinarily

bonds

high.

will

With

bracket will be 12.9%

Vis-A-Vis

of

to

are

their

more

and

Turnpike

criteria

.bonds

issues.

of

the New York World's Fair

be

based

on

of

pay

and

p.m.

Guests are in-

vited.

affiliated

moneys

Members

these

of the Toronto Stock Exchange

with

"traffic"

wishes

turn¬

to announce

latter's

the

with

GOODWIN HARRIS & COMPANY

149

ad¬

are

that it has

to

conduct

a

opened offices at

Broadway

New York 6, N.

estimates which,

Y.

brokerage business specializing in

Canadian

Securities

for banks, brokers and institutions.
♦

the comcharges by the rentals

definite contracts'by
No money

*will be ad¬

the Series A bonds

contracts

the

in

coverage ^of

under

on

feting will be held iin

ing at 5:30

Goodwin Harris & Go., Inc.

Finance

safety,

Under

routine,

exhibitors.

with

The

be

16.1%.,

contrasted

basic

announced here today,

the

although they are as careful and
rexpert as is possible, are largely
unsupported. On the other hand,
under the Interama provisions, no
money is advanced until the con¬
sulting engineers confirm the cer¬

til

was

ine Municipal tsona
of New York, it

Club

during which to build. Contrast- Room 1703, 15 Broad St eet, st

price of the two bond issues ex¬
pected to yield 4 and 5%, the
taxable equivalent yield
to a
holder
in
the
$40,000
income

On

Tv/r„«i^^i

Women's

potential-

yield

have

exhibitors

been

out the bonds in

providing-for

a

five

^
f

^..V'"

*

ir

"

Chester
"

^

^

4 will be General

P.

Schneider
O*

.

v

V

'

Manager of the New York Office

v

-

^

un¬

signed

sufficient

to

years,

four-time

Tri-

Tunnel

Authority" at the March 8

meeting ot

ingly, iq the hurried constructing
the

For

the

and

ects of the Triborough Bridge and

Headaches

Here there is a three year interval
of

cilities.

Bridge

Authority, will discuss "The Proj¬

develop and fill the land. The A
There
are
many
advantages
bonds, probably the more secure which this Florida project enjoys
obligations, to be held in escrow over
previous
Fairs., Foremost
until
the
consulting
engineers
am0ng these is the labor situation,

construction

of

secretary

borough

bonds', buyers,
.

to

an(j

ageii

corn-

Freedom From Previous Fair

Most

Loeb,

M.

Municipal Bond Women
George Spargo

prop-

insurance

Carl

with

Rhoades & Co.

real estate de¬

a

Mr. Bastian was

formerly

Business Criteria

enlist the careful

Bastian

Reilly & Co., Inc., 42 Broadway,

'

^

o

series

$27 million.

bonds

B

,.V

engi-,including admissions; as -well as
■
land. Thus, the bankers expect to
of

.

two

be

provides

taxes;
to
the
operating revenues,

bonds, affording $70 million of financing; Series A of $43 million,

vanced
•

that

Exchange Com- tjon rather than
as fiscal agent,
yelopment. And
has been engaged as Managosition
free
of
Director.
Ebasco Securities, extent of all

due

a

Assuming

mission, is acting

mitted-for

&.

the Recon-

agencies,

struction Finance Corporation and

tainty

Hodgdon

■

i

operating profit ($18 million) estimated by the engineers Ebasco

Leh-

the Securities and

vanced

Development Co. Inc.

venerable

banking
firm.
Harry A. McDonald, who was suecessively Chairman of two key

usual

Report

the

investment

man

pike

Pubco

by

a pro:,ect

int0 grave trouble-

nancing,

taxable.

ingenious financing plans
being carried out under the

are

anticipate little trouble in booking all the
handle in the. second quarter, despite evidences

Continued

..

be-

attributes;

characteristics

investment

Reilly & Co.

will equal twice the interest charges on the bonds, plus an
And a tax-exempt bond on a fair
million reserve in the general
is
probably unprecedented; the *uncb to serve as a cushion for any
bonds floated for the New York,
Possible revenue decline.
This
Chicago, and San Francisco ex- Provision of reserves provides ap¬
positions were all privately spon- other contrast with turnpike fi-

producers

tonnage they

its

unique

sentially, it is a business project
enjoying a wide tax exemption,

past

week, but Packard
was in its fourth week of closedown.
Shortage of Rambler parts
caused cessation of
activity on Thursday of last week and on
Friday at American Motors.
6,500

well

hybrid

tract
Miami

and

positively

and Series B of

On

Flint,

North Miami

is

of its physical

ing

estimated

the lowest total of the year.
Truck

1,750-acre

cause

to-date

1,085,235
is nine

between

Beach,

^

the

charged with its dea

fl:

thr&f-d

American ^^nter Authority,
on

project interesting
Florida's
year-

as

cov-

ahead.

years

are

agency

a

sunshine!

of approximate-

reach the market before March 15.

The
of

in all,

and. ! unique

because this involved miscalculation of truck traffic estimates, they

state

permanently

Syed^pen fofan

is

endeavoring to put together an
underwriting group, will probably

now

and

ar

ap past World Fairs includ-

N?w York) Chicago and San
Francisco, have a mere run for

that

pikes

ly 1-60% of a11 debt service
erage

here.

without any foreseeabie termina-

by the situation in
the engineers esti-

the

beneficial

be operating 300

seem

difficulties

with

up

unprec-

ing

The

An is-

be

Also in its relatively assured re-

have

consum-

must

bon

as a reserve.

tion

velopment

actually had

contemplated

^

per-

Advance Rental Arrangements

mated.

*

the

whereas it will

some

in the months ahead.

of the buildings

Also

years

tW^™radecenter'project

for

Wilfred

was

ed^nted "length'of'time"it

ordinarily offer merely
debt

one-years

haps a
charges

does

sue

A.

In

'

were

spring selling

charges.

ever1 sinceNo-

m

are

these
respects this financing is likewise
more advantageous than is characteristic of the turnpike issues,

naneine nlans

,-jtt

of

coverage

most

4 .:

^

*

fi-

and

1

.

Early February
good and indications are that heavy dealer stocks were
cut by almost one third. When the
figures are in, they may show
current stocks of between
450,000 and 500,000 new cars. Detroit
sources say this is not an
unusually high number of cars for the

coming

now

nancing

lot better than the so-called
experts expected.

sales

in

stage

It

V

.

producing light plate
on sheet mills to
help relieve the impossible plate market.
But, continues this trade paper, the producers cannot afford
to overdo this sort of
thing. One reason is that the auto business;
a

been

g ng

n

*

; "

are

such

T

This puts the

some

has

talking

hntu'In "i-i"
the dig-

offsetting the slightly easier cold-rolled sheet
by resuming sale of hot-rolled sheets after months of

market

at

which

new

both

-

in

center,

/

turning down others.

is

not: Florida's

or

pie-in-the-sky

for

position, according to "The Iron Age," national
metalworking weekly this week.
Everybody knows, states this trade weekly, that steel demand
will continue strong for months into the
future, but the tempo¬
rary easing in automotive has clouded the picture just
enough

UNIQUE PROJECT

overbuilt. On only two
it filled to capacity, and

was

some

to be hidden.

Believe it

precarious

a

dig
days

A

J
steel

construction is stringently geared
to the leases, the New York shin¬

Production

Business Failures

wasted

was

arrangement here whereunder the

t

By A. WILFRED MAY

Index

Cs_
The

•

Retail Trade

State of Trade

million

overtime pay.

Again in contrast to the airtight

Observations.

Electric Output

$10

5

Telephone WOrtb 4-5210

Teletype NY 1-1012

„•

February,-1956

<

"

•

•

Commercial and Financial Chronicle

The

5

;

.

Thursday, March 1, 1956

.

(1054)

vestment.

Currently Attractive

Rail Stocks

philosophy has since

whole

changed.

.

Having stressed the fact that

have gen¬

The roads themselves

it

impossible to look at the rail¬ erally pursued aggressive debt re¬
roads as a single cohesive group,» tirement policies and on new is¬
most cases
1 will, nevertneless, spend some sues the ICC has in
time in a general discussion as insisted on sinking funds. As a re¬

New York City

adopted in

one way or

most of the

is

WYETH*

By HERBERT F.

Shearson, Hammill & Co.,

.conservative in-:

That
been

is the essence of

been
growing by
bounds. In the opinion

has

country,

leaps and
of

most railroad

has not

is

men

the surface

been scratched.

even

most

a

another by

major railroads in the

potent

This

in the

weapon

competitive battle.
for my optimism. I sult, fixed charges, largely con¬
Earning Performance
that by the time I sisting of interest on debt, are
now down to less than
$385 mil¬
spoke to you this optimism would
tive return of
I have spoken of the huge sums
be bolstered by inauguration, cf. lion annually, compared with
placing rails in top physical condition; (3) class I rails as a
spent
on
new
equipment and
the 7 % general" freight rate in¬ some $700 million at the outset of
K whole always, including the depression, showing substan'ial
crease
that
the
railroads
have the depression of the 1930s, it is property improvements since the
end of World War II. These ex^
operating profits; (4) strict mortgage debt retirement policy .
requested. The Interstate . Com¬ pertinent to note that these pres¬
penditures stood the railroads irk
ent charges would have been well
merce Commission, however, has
making it unlikely bonded debt will cause luture difficulties;
asked for some additional time to covered in the railroads' poorest good stead during the readjust¬
ment
(5) truckers low operating margins necessitating even higher
year
1954. The
earnings,
digest the testimony presented by year, 1938, when there was $503.5
rates than 7% general increase rails soon expect to receive,
performance of the major carriers
thd railroads, and by parties op¬ million available for charges.- >
in that period went far toward'
and successful rediversion of freight from trucks to rails; (6)
It is true that a substantial paft
posing - the increases. I am con¬
fident on the record that the in¬ of the reduction in debt and fixed dispelling the fears that had been
ability of carriers to offset revenue decline by lower operating
creases
will go into effect very charges was accomplished through prevalent in many quarters that'
costs and taxes, leaving creditable net income, and (7) favor¬
the railroads are capable of mak¬
shortly as an offset to wage in¬ judicial reorganization but there
able 1956 earnings outlook. Mr. Wyeth stresses need to judge
creases
granted
late last year.- are many roads (Santa Fe, Dela¬ ing real money only in periods of
each railroad selectively and lists some that appear attractive.
and that with
There will unquestionably be ex¬ ware & Hudson, Great Northern, peak-prosperity,
even
a
minor decline in traffic
ceptions to the 7%
boost, and Illinois Central and Southern to
Railroading represents a wide probably caused the most grief, is presumably there will be some name a few at random) that have the burden of fixed costs would
field
for
both
investment
and the inclination on the part of the
bring about a complete collapse

expert
justifies highly constructive
railroad-industry by^i ing: (1) competirails; (2) billions invested in postwar decado

Railroad

investment

r.

background

investor view toward

,

had

hoped

.

-

immediate downward

widely
misunderstood, and generally
maligned, in; :• V. V-.speculation.

is

it

Also,

a:

It is true that

during the
past couple of

discriminate

individual

the

such

where
alent.

stocks

have

No

say,

tance in many

stock

institutional

ever

one

prev¬

presumes

instance,

for

enjoyed
wider accept-

is

attitude

an

to

because

that

every

this

accept¬
has

ance

for.

Herbert

not

F.

Wyeth

tarring
the

every

to

as

that in

apathetic.
like

justified

on

by

possible

as

highly

a

railroad

the

of

fully

opinion

out

attitude toward

structive
ture

start

to

emphatically

my

con¬

fu¬

the

industry

is
record. I

the

like to add, moreover, thai;
whether you realize it, or whether

would

you

like it, virtually

in- the

and

United

and

has

a

financial

securities

through

savings

"When

say

I

such approach
securi¬

railroad

in

ties it is only necessary to

cite one
example from the record. Back in
1940 Santa Fe common sold at 13
and Pennsylvania at 115, with both
showing about the same earnings
per

share. Last year
$14.70 a share

earned

Santa
on

a

do

not

want

to

accounts.

leave

Fe
stock

that had been split 2-for-l, while

examples,

spectacular and
but

will

not

some

just

the

im¬

recent,

the

point.

belabor

What I want to

do is impress on

selectivity has

that

as

some more

inclined toward railroad securities
I

and

fallacy,

and

policies

in

constructively

am

investment

the

similar

stake

banks

underline

To

life

direct

through

other, insurance

I

of

Pennsylvania earned $3.13 a share.
Santa Fe is selling at the equiva¬
lent of 292 and Pennsylvania at
about 23. I could cite many other

every person

States

important

railroad

stock

brush.

same

real danger, of any

stating

attractive

railroad stock with

remained
would

-

the

purchase

spread put
universally and for the most part
it is obvious that the public has
I

an

other automobile manufac¬
turer should be bought. Still, that
would be no more illogical than

but

quarters,

is

Motors

General

always

pression that I consider that each

you

and

been the key to

successful invest¬

will

made

tractive

and

vestment

time.

railroad

is

represents good

value

Nothing

from

stock

the

at

,

further

ative and when, and where, con¬
ditions and prospects warrant such

Selectivity in Rails
One big trouble in

and

ble -investment program is imper¬

j

it

..

in¬ ment

present Under the circumstances, a flexi¬

could, be

the truth.

at¬

action, shifts should be made from

the railroad

one

investment field, and one that has

security

to

another.

Do

not

feel that any such action puts you
*An

umbia

address

by Mr. Wyeth at
University, New York City,

Col-

in the status of

Feb.

ing securities

J

20, 1956.

"trader"—shift¬

a

as

conditions dictate

billions of dollars

motives,

■

jor distribution

Write jor your copy

STROUD & COMPANY
....

PHILADELPHIA 9
New York

•

Pittsburgh

•




Allentown

•

Lancaster

•

Scranton

that

An

ume.

still going forward and

there is

no

question in.my mind, but that the
diverted from the rails, and would
cumulative benefits of the money
not have moved at all if the. trucks
already spent, and expenditures ,
had not been in existence. Be that
planned for'this year, will yield: as it may, the picture has altered.
increasing dividends in still high¬

;

levels of operating efficiency.

er-

In

particular
to

money

saved

be

by

of multiple track
tion of
*

through

railroad

There

was

•

a

a

as

depression'of the,

whole

substantial

this is

more

operating
than

are

traffic

individual

items

cuts on

have

today

investment

particulariy mechanization of

profit

—

made it

have

show, expedite

be said for

can

and'

I car¬ yards,

to

failed

of;our other major indus¬
that

;,

proven highly successful in ;many
; one.
during instances. Property improvements,

middle '30s, when the Class
riers

freight pre¬

viously lost. Selective rate

mind that

even

year,

the depth? of the.

been

profitable

a

.

no

Secondly,

in recent years have

toads

in

important, the rail-

get back some of the

industry as such has

been

always

rates.

are

instailarl

5

C.T.C., etc.

It is well to bear in
the

railroads,

elimination making much more strenuous ef1
forts to halt the diversion, and to

communications,

and

of higher

and far more

signaling

improved

the

than

of need

maintenance of way and accounting

departments,

extremely low

operating, at

more

the

possible to

service to compete with,

and in many instances
truck

outperform,

schedules, thus -eliminating

service

accepted • as preference for highway transport.
To
a The same thing has been accom¬

media.

of

the

heavy
onerous

Prior

to

debt

structures

fixed

that

charges

time

rail¬

freight trains that completely by¬
pass

yards

en

has been the

route. Finally, there
establishment of the

•

Atlantic Citj

absorbed by.

was

and, of
income

operating) costs
lower
Federal

lewer
course,

The

taxes.

million

of $673.6

income

net

reported

1954

in

a

was

highly creditable performance by
in

Similarly,-

normal standards.

any

1955

that

but

ward

to

1953

in

than

lower

pushed for¬
all-time peak of

income

net

new

a

around'

probably

were

million

$500

that gross

estimated

is

it

revenues

perhaps $916 million. This, I sub¬
mit, is one of the best testimonials
to
the
improved status of the
railroad industry.
1956
It

to

seems

Outlook

that the outlook

me

present year is highly
favorable.
Earnings reports, for
the

for

a

roads

large number of the rail¬
have been able to absorb
wages

without too much,

Freight rate increases,

trouble.
am

indicate,

February

and

January
that

will

convinced,

in

be

before the middle of

X

effect

next.month;

The outlook for business, and par-,

ticularly the steel industry which;
is very

important to the railroads,
consumption

excellent.; Coal

is

based

both

public; utility de¬

on

mand in this country and

port requirements will

the ex-,

almost un¬

upward.

questionably

continue

There is every

indication that iron

ore

1956

of;

supplies at the beginning

the

shipping season will be
iron ore tonnage

low so that

show

some

should

improvement over the

'T

high levels attained in 1955.
The

angle in the shipper's

large degree the troubles of the plished in other cases by putting
service
special through fast
middle 1930s stemmed from the in
burden

decline

revenue

truckers increased

exceptions,

few

profit margins so that they, even

modern

mechanization

further

yards,

are;

still much

is

there

With

earnings.

general

truck

intercity

.

Such had been the
experience in the past."
In 1954, however, with a year-toyear decline of close to $1.3 bil-.
lion in gross revenues, net income
declined! only $228.4 million.
In
other words, close to 80% of the-

in

appfjciable portion of

traffic was
generated by the trucks, was not

the

mortgage debt was rarely "piggy-back" service, transporting
paid off or provided with sinking truck trailers on flat cars. This
funds.
It
was
merely refunded. service, which by now has been

31, 1955

INCORPORATED

say

competition for high

larly truck

peaks. These programs are

pew

road

Philadelphia School District Bonds
Now available

to

sate

competition, and particu¬

of

lem

im¬

cars,

is

grade freight, is one of the major
freight classification yards, new
question marks in the investor's
track
structure,
machines
for
mind when looking at railroad se¬
mechanizing maintenance of way
curities. There can be no question
operations, etc., during the post¬
but -that this competition has been
war
decade. These huge capital
(Serious, and that the trucks have
improvement outlays were super¬
diverted a considerable amount of
imposed on generally lib e r a 1
traffic away from railroads. I ven¬
maintenance expenditures.
As a
ture
to- say,
however, that the
result, the railroad plant today is
diversion has not been so great as
in the best physical condition in
indicated by the bare figures on
its history and efficiency year by
the growth of intercity truck vol¬
year has been pushing forward to

sound

and

of December

freight

new

thereon.

as

diesel loco¬

on

it

competitively the railroads have
also turned the corner. This prob¬

many

proved' signaling, push-button

and

City of Philadelphia

that

railroad

any

Truck Competition
think

I

railroads have spent

The

j

<

Physical Condition

tries

Equipment Trust Certificates

visualize

to

ciency.

many

Semi-annual Appraisals

non-

greater operating effi¬

toward

c

their

reduce

to

able

been

equipment debt by 40% to 60%,
or even more. It is difficult today

The slack could readily be might conceivably get into diffi¬
up
by
further progress culties over its bonded debt.

wages.

continue. to .be.

every

adjustments

competitive items, but on bal¬
ance
the higher rates should go
far toward offsetting the increased
on

proper¬

ties? I know of no other industry

catego¬
ries of rail¬
some

road

to

attempt

any

between

and

*

to

bunch all railroads together as one

out

railroad

bonds

guilty)

also

are

single,
and
simple,
investment
problem. How often do you hear
"The rails are
a
good buy" or
"The rails should be sold," with¬

vestment field.

years

non-professional (and many pro¬
fessionals

only

>

real soft spot in the

picture is automobile production.
It

seems

to

that

me

so

other industries take up
-in

occasioned

by

the

railroads

demand

should

not

suffer —in

fact, they may realize a net
Automobiles

as

gain.

such do not ordi¬

narily move by rail
other

as

automobile production

steel

lower

long

the slack

whereas the

products for which the re-

Volume

leased

183

Number 5512

steel

will

be

used

do

that

will

the

come

improvement

in

The Commercial ani Financial Chronicle

.

.

largely

also
expect
that
these
record
earnings would result in a continuation \of the trend towards

tep

continuing

operating

effi-

ciency to which I referred earlier;
Tax

benefits

from

instances

higher.
despite
net

On

may

balance,

the

then,

fact

that

for

the

income

"'./'.'Vr-->.>•;*

sections

and

whole

of

different

-

have

naturally

different

and han-

types

of

been

comPe^tion has been more severe
in areas where adequate highway
systems have been constructed
anc? where the distances between
maJ?r traffic points are shortest,
Obviously, then, all railroads in
the country have not been equally
affected by competitive influence.

Different

in

the country

dling

long-term trend toward decentralization
of
ihdustry,
and
a
shift of population,, first to the
southeast and then during World

As I have said before, it is impossible to judge all railroads by
one yardstick. In addition to that War II to the western sections

aggregate

operating

I—TERRITORY: There has been
a

Diverse Competitive Factors

be

even

:

COMPETITION*

jj

rajiroacis

railroad.

<

traffic

subiect

in

varying degrees to pressure from
competing forms of transportat:

of

p;npi;nps.

n

v

inctanpp.

fnr

havp

'

.

jji

OF TRAFFIC:

TYPE

con-

the country. This has meant more

t>een an

stant state of flux and conditions
affecting the fortunes of the in-

traffic for roads operating in the

influence largely to those

growth centers at the expense, at

all-time peak in railroad earnings

who originally carried a substan-

petition.

dividual

least

this year.

tial tonnage of petroleum products.

less

reflect

coun-

Barge

keen

Every indication is that this

those

months
me

and

off,

be

may

first

it

few, if

any,

cur

to

seems

that the prospects favor

As finances

two

new

a

strong

are

railroads face

"

economy

railroad

these

is

in

will

a

naturally

changes.-

I

would

just like at this time to touch

any

in

of

sense,

mature sections of the

more

try.

on

relative

a

the

lmPOrtant

diversionary

competition
roads

has

certa|n

roads

the

affected

paralleling

this

extent

preceding comments on
Consumers goods

carload

have

on

5%,3%, 2V4% and y4%
V/a%,

School Building Aid Bonds, Series L
*

May 1, 1958-82, incl.

(Accrued Interest to be added)
Coupon

Yield

Amount

or

Principal' and semi-annual interest (May 1 and November 1)

Pricet

able

$1,000,000

1958

5%

1.70%

1,000,000

5

1959

1,000,000

5

1960

1.80%

1,000,000

5

1961

1.85%

1.75%

1,000,000

5

1962

1,100,000

5

1963

1,100,000

5

1964

1.95%

1,100,000

3

1965

of

office

of

the Treasurer

California,

the

at

or

duly authorized

any

of the State of

option of

the

These

bonds, to be issued under provisions of State School
Building Aid Bond Laws of 1952 (Chapter 20; Division 3,
Education Code) for school
purposes, in.the opinion of coun¬

pay¬

California in

holder

the

at

of the State Treasurer, in¬

agent

sel will be valid and

First

2.00%

the State Treasurer in New York City.
payable May 1, 1956. Coupon bonds in denomina¬

coupon

tion of $1,000

1,100,000

2%

1966

1967
1968

2.15%

1,200,000

2Va

1969

2.20%

1,200,000

V/A

1970

2.20%

1,200,000

2%

1971.

100

1,200,000

2%

1972

Bonds maturing on and
tion at the option

2.10%

2 V*

100

(but

1977

thereon

V

date of

tion shall be
more

than

Cities

fornia.

1,300,000

2%

1973

100

2%

1974

2%

1975

once

90

a

are

whole
on

or

subject

week for

to

pledged for the punctual
payment.of both principal and interest. Under the enabling
obligated to"collect annually, in the same

redemp¬

on

in part,

May 1,

statute the State is

interest payment date

any

amount thereof and

manner

accrued' interest

two

weeks

not

less than 30

days

State

Francisco,

Sacramento and

the bonds should

be

Los

as

sum

shall be

nor

the bonds

days prior to said date of redemption, in each of

of San

and at the

lected, such

Publication of notice of redemp¬

redemption.

If less than all

2.30%

1,300,000

the principal

as a

and

prior thereto)

not
at

to

after May i,' 1978,

of the State,

thereafter,

the

1,300,000

ized

Angeles, Cali¬

of

redeemed, they shall

the

as

same

time

be called

in

inverse

than

all

numerical

order, the

bonds maturing in

the

part so called
any

one

not

less

required to

2Va

1976

2.35%

In the

2Va

1977

2.35%

bonds is exempt

2V*

1978*

2.40%

on

2Va

1979'

2.40%

1,400,000

2

1980*

pay

were

November 4, 1952, for the

author¬

purpose

thereof

to

2.40%

be

repaid, in whole

districts

•

in part, by the

or

receiving aid.

personal income taxes under existing statutes, regulations and

1,400,000

is col¬

providing aid for school construction in. the State, the

amounts

:

1,400,000

revenue

ordinary revenue of the
principal and interest on

become due. The bonds

same

by the electorate

year.

1,300,000

other state

as

in addition to the

2.30%

1,300,000

1,400,000

Va

Va

1982* No Re-Offering

to

•Bonds

maturing

1,

2.40%

vestments

for

Massachusetts

1977,

as

1978-82,

savings

banks

and

These bonds

requirements
funds

trust

and Connecticut and will be

subject to coll ot

interest

described

in

and

on

after

for deposits of public

May

moneys

eligible

by

legal in¬

as

New

us

orable

York,

offered when,

Edmund

the State

banks in

as

are

and if issued and receiviu

in California.

G.

Brown,

Attorney General of

of California, and by Messrs. Orrick,

Dahlquist,

security

as

and subject to approval of legality by the Hon¬

Herrington & Suteliffe, At¬

torneys, San Francisco, California.

herein.

Bank of America N. T. & S. A.

The Chase Manhattan Bank

American Trust

Giore, Forgan & Co.

Company

decisions.

California and certain other states and for savings

maturity.

plus accrued

por

from all present Federal and State of "California
court

1981*

fYield

opinion of counsel, interest payable by the State upon its

We believe these bonds will meet the

2 Va

1,400,000

The First National

City Bank of New York

C. J. Devine & Co.

-

Blytii & Co., Inc.

<

Union Securities

•

Corporation

The First Boston Corporation

Harris Trust and Savings Bank

Merrill Lynch, Pierce, Fenner & Beane

R. H. Moulton & Company
The First National Bank

Weeden & Co.

Son Francisco

of Portland, Oregon

Seattle-First National Bank

Security-First National Bank
of los

B. J. Van

terms

State, and the full faith and

credit of the State of California is
.

2.05%

2 V*

1,200,000

payable in accordance with their

of the General Fund of the

out

registerable only af to both principal and interest.

1.90%

1,100,000

legally binding general obligations of the

State of California

cluding the agent of

1.85%

,

the office

at

Sacramento,

Ingen & Co. Inc.

Coffin & Burr

Dean Witter & Co.

Angeles

los

t

Heller, Bruce & Co.

•

California Bank

Reynolds & Co.

Barr Brothers & Co.

Hayden, Stone & Co.

Bache&Co.

Roosevelt & Cross

Andrews & Wells, Inc.

Newark

.

:

Wertheim & Co.

(Incorporated)

A. G. Becker & Co.

Clark, Dodge & Co.

Shearson, Hammill & Co.

•

Ira Haupt & Co.

G. H. Walker & Co.

Brown Brothers Harriman & Co.

Youngherg

Gregory & Sons

•>

' William Blair & Company

Wachovia Bank and Trust Company

The National

Schaffer, Necker & Co.

City Bank

Lawson, Levy & Williams

Pierce, Carrison, Wulbern, Inc.

Robert Winthrop & Co.

Cruttenden & Co.

Shuman, Agnew & Co.

Fulton, Reid & Co.

A. G. Edwards & Sons

Kalman & Company, Inc.

Allan Blair & Company

Julien Collins & Company

Lyons & Shatto

■■

Incorporated

Company Kenower, MacArthur & Co. Irving Lundborg & Co. The Robinson-Humphrey Company, Inc. R. D. White & Company Talmage & Co. Hayden, Miller & Co.
Burns, Corbett & Pickard, Inc.

Folger, Nolan-W. B. Hibbs & Co. Inc.

Field, Richards & Co.

Rodman & Renshaw

Stranahan, Harris & Company

Blunt Ellis & Simmons

Northwestern National B2nk
of Minneapolis

Davis, Skaggs & Co.
The Peoples National Bank

Mullaney, Wells & Company

The Milwaukee Company
The Milwaukee

Stein Bros. & Boyce

Bosworth, Sullivan Company, Inc.

Ginther, Johnston & Co.

Arthur L. Wright & Co., Inc.

Thornton, Mohr & Farish *

Prescott & Co.

Foster & Marshall

J. C. Wheat & Co.

Wagenseller & Durst, Inc.
March 1,1956.




Seasongood & Mayer
-

Stubbs, Smith & Lombardo, Inc.

The Weil, Roth & Irving Co.

The Continental Bank and Trust Company

of Boston

Courts & Co.

Incorporated

Salt lake City, Utah

Boettcher and Company

Doll & Isphording, Inc.

Scott, Horner & Mason, Inc.

Dwinnell, Harkness & Hill

Incorporated

Rockland-Atlas National Bank

H. V. Sattley & Co., Inc.

Hooker & Fay

Clement A. Evans & Company

'

Incorporated

Ferris & Company

Anderson & Strudwick

Janney Dulles & Co., Inc.

Charlottesville, Va.

Lucas, Eisen & Waeckerle

>
,<

of Seattle

-

of Cleveland

McCormick & Co.

'

Branch Banking & Trust Company

T

National Bank of Commerce

Fairman, Harris & Company, Inc.

Kaiser & Co.

*■'"

'

The First National Bank

New York Hanseatic Corporation

A. M. Kidder & Co.

•' Memphis

..."

E. F. Hutton & Company

.'V

:

.

The Ohio Company

.

Stone &

•

V

Wood, Struthers & Co.

.

H.E.Work&Co.

F. S. Smithers & Co.

Bacon, Whipple & Co.
--Vv.

1

Fidelity Union Trust Company

Alstyne, Noel & Co.

^

■'.

...V'..'

,

McDonald &

John Nuveen & Co.

Incorporated

Wm. E. Pollock & Co., Inc.
Van

J.Barth&Co.

Angeles

Incorporated

Incorporated'-.

William R. Staats & Co.

Wilson, Johnson & Higgins

The First of Arizona Co.

Walter Stokes & Company

Magnus & Company

-

Brush, Slocumh & Co. Inc.
Fred D. Biake & Co.

Waiter, Woody and Heimerdinger

and

page

OF CALIFORNIA

Due

com-

most vulnerable to truck
Continued

river

Dated March 1, 1956

a

traditionally

$30,000,000

AND YIELDS OR PRICES

To

point overlap.'!

New Issue

AMOUNTS, RATES, MATURITIES

X

(1055)

trend is continuing, and perhaps routes far more than it has afat an even accelerated pace.
fected inland rail carriers. Truck

a

dividend- disburse-

amorti- 'merits.

rapid

zation should be very little lower
this year than last
year, and in
some

liberal

more

,

few of the factors that have led,
and will continue to lead, to wide
variations
in
the
performance
and prospects of the individual

debt maturity problems, I would

On

constitute rail traffic.

of

.

J. B. Hanauer & Co.
Stern, Frank, Meyer & Fox

C. N. White & Co.

-

43

The

8

Commercial and

Financial Chronicle

Thursday, March 1, 1956

• . .

(1056)

Recommendations & Literature
pleased

It is

understood that the firms mentioned will be
send interested parties the following literature:

to

Co., 208 South La

&

Co.—Memorandum—White & Co.,

Delhi Taylor Oil

Commentary—Semi-annual report on status of industry
as
of Dec. 31, 1955—Atomic Development Securities Co.,
Inc., 1033 Thirtieth Street, Northwest, Washington 7, D. C.
Capital Investment In Canada — Report submitted to Royal
Commission on Canada's Economic Prospects—Investment
Dealers Association of Canada, 170 Bay Street, Toronto 1,
Analysis in current issue of
Nikko Securities Co., Ltd., 5,
Kabuot-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.
Japan

in

—

Weekly Stock Bulletin—The
1-chome,

Certificates—Semi-annual appraisal—Stroud

Equipment Trust

Phila¬
Phila¬

Incorporated, 123 South Broad Street,
delphia 9, Pa. Also available is an appraisal of City of
delphia and Philadelphia School District Bonds.
&

Company,

&

Co., 120

1956—Brochure—Bankers Trust Com¬

Investment Outlook for

N. Y.
Japanese Stocks—Current information—Yamaichi
Co., Ltd., Ill Broadway, New York 7, N. Y.

Securities
issue of

Six-Year Economic Program.

Tool

and Engineering Company
Swasey Company—Troster, Singer
Co.,
Tool

Snyder

New York 6,

&

Richards

Gas—Bulletin with particular reference to
Gas

Co., 621

Corp.—Hill

Propane

National

and

South Spring Street, Los Angeles 14,

Calif.

up-to-date com¬

Over-the-Counter Index—Folder showing an

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
National
York

performance over a 13-year period —
Bureau, Inc., 46 Front Street, New

market

and

yield

Quotation

4, N. Y.

Raw

5, N. Y.
Ilis Market—J. William Craig—Lam-

Company, Inc., 99 Wall Street, New York 5, N.

Y.

New York 4, N. Y.

Co., 120 Broadway, New

Chemical
New

&

*

*

Dye

&

report—Allied

Dye Corporation,

Broadway, New York 6,

61

York.

Co.

—

Annual report

—

Allis-

Shareholder Relations Depart¬

Chalmers Manufacturing Co.*

ment, 1125 South 70th Street, Milwaukee 1, Wis.
American Marietta Company—1955 Annual

Marietta

Company,

Ontario

East

101

Street,

Chicago 11, 111.
Anglo

Exploration

American

Ltd.—Bulletin--DeWitt

Organization. 100 Broadway, New York 5, N. Y.
able

is

a

bulletin

Products, Inc. and
Anglo

Conklin

Also avail¬

on

Pabco

Products

on

North

Canadian Oils Limited.

Canadian Telephone Co.

—

and

Inc.

Fibreboard

Analysis—Amott, Baker &

Associates Investment

Investment

Canteen

Automatic

Company

South
of

Bend,

Blaw Knox Co.—Memorandum—Hirsch &

York

4,

N. Y.

Also

available

is

memorandum

Ltd.

—

—

Glick

&

Co., 120 Wall

Gulf Producing and Westinghouse

Malleable

National

Textile

&

Castings Co.

Steel

2.8798% to

Street, New York 5, N. Y.

Pipe Line

New York 5, N. Y.

821

Ltd.,

—

Analysis

—

Stanley Heller & Co., 30

Street, New York 5, N. Y.

Inc.—Analysis—G. A. Saxton & Co., Inc.,
Street, New York 5, N. Y.

Purolator Products,
70 Pine

Incorporated—Report—Loewi & Co., Incorporated, 225
Street, Milwaukee 2, Wis. Also available is an

East Mason

analysis of Central Maine Power Company.
Richfield

Corporation—Analysis—Dean

Oil

Office Square,

Co.—New

Witter & Co., 45

views—Lerner

&

Co.,

10 Post

Stocks.

Corporation—1955 annual report and
the products and processes of
the company—Secretary, Union Carbide and Carbon Corpo¬
ration, 30 East 42nd Street, New York 17, N. Y.

Union Carbide & Carbon

Industries—Bulletin—J. R. Williston & Co., 115
New York 6, N. Y.

Broadway,

Union Telegraph

Co.—Analysis—H. Hentz & Co.,

60"

Street, New York 4, N. Y. In the same bulletin are
reviews of National Supply Co. and Blaw Knox Company.
Also available is a memorandum on Howe Sound Co.
Beaver

Manufacturers—Bulletin—Ross, Knowles &

Co., Ltd., 25 Adelaide Street, West, Toronto, Ont., Canada.

from the sale of

proceeds

series will be applied
financing costs in connec¬

the present
toward

129

with
-

mile

approximately

the

Greenwich- Killingly

will

turnpike

The

traverse the State of

Connecticut,

New

York
Conn.,

extending

from

the

through heavily traveled areas to
the Rhode Island line at

Killingly.

which for a sub¬
stantial part of the route will par¬
allel Long Island Sound, is de¬
The turnpike,

signed to relieve the heavily con¬

gested Route U.S. 1 and the heavily
Merritt Parkway.
The

turnpike will serve the area be¬
tween New York and Boston, 225

apart, and thus will be lo¬
in a manner similar to the

miles
cated

traveled, successful New
which 118 miles
long, serves the area between New
York City and Washington, D. C.,
which are 220 miles apart.
The
heavily

Boston 9, Mass.

Corporation — Bulletin — Cohu & Co., 1 Wall
Street, New York 5, N. Y. Also available is a bulletin on

Norman

Net

was

traveled

Montgomery Street, San Francisco 6, Calif. Also available
is an analysis of American Potash and Chemical Corporation.
Cement

$100,000,000,

1954.

State line near Greenwich,

'

Pennsylvania Railroad

in May,

Expressway.

Limited—Analysis—C. M. Oliver & Com¬
West Hastings St., Vancouver 1, B. C.,

Canada.

sold

tion

Co.—Circular—Singer, Bean & Mackie,

Exchange Place,

40

Inc.,

of

amount

the

—

Wall

$398,000,030 bonds
the
Connecticut

for

.

brochure—Blyth
Co., Inc., 14 Wall Street, New York 5, N. Y.
Hickory Copper
Report — General Investing Corp., 80

&

cost of
the State of Connecti¬
bonds constitute the

Turnpike; the first series, also in

Y. Also avail¬
.

was
result¬

group

interest

net

authorized

—

Company—Illustrated

Gas

Natural

The

cut.

The

100.
a

second series of

Memorandum

—

of
in

ing

Air Brake.

Dreyfus & Co., 50 Broadway, New York 4, N.
able is a memorandum on Rexall Drug, Inc.

Western

Street, New York 5, N. Y.
Canadian

from

awarded the issue on a bid

Van

Memorandum

Corporation. The bonds are scaled
a yield of 2.10% to a dollar

South La Salle

39

price

on

Capital Airlines, Inc.
Burma Mines

Inc.,

Lehman
Boston

by

First

The

and

Brothers

illustrated booklet describing

Co., 25 Broad Street
a

Co.,

headed

underwriters

and

28 by a group of

made Feb.

Products—Bulletin—Bache & Co., 36 Wall
Street, New York 5, N. Y. Also available is a bulletin on
American Viscose, Jones & Laughlin Steel, Delaware, Lack¬
awanna
& Western Railroad, Robert Gair Company, Texas

Copper

Ind.

America—Brochure—Glore

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

Canada

inclusive,

1961-1995,

due

pike)

Sperry Rand

Company—1955 Annual report—Associ¬

Company,

Series

ond

Richardson &

East, Winnipeg,
Canada.

Killingly Expressway, Sec¬
(Connecticut Turn¬

wich

Street, Chicago 3, 111.

Riverside

Co., Inc., 150 Broadway. New York 38, N. Y.
ates

Motor

National Distillers

Ranco

report—Department

&

Mercast—Analysis—Leason

Expressway Revenue and
Fuel Tax Bonds, Green¬

2.90%

York 5, N. Y.

Avenue,

Portage

173

Sons,

of

State

was

Pine

American

McDonnell &

—

Bloedel Limited—Review—James

&

:

Corporation—Annual

Allis Chalmers Manufacturing

9,

Memorandum

Ltd.—Analysis—J. R. Williston & Co., 115 Broadway, New York 6, N. Y.
Kendall Company — Analysis — Blair & Co. Incorporated, 105
South La Salle Street, Chicago 3, 111.

pany,

Chemical

—

Jupiter Oils

MacMillan

of $100,000,000
Connecticut 27/s% and

offering

Public

Industrial Acceptance Corp.

Pembina
*

Allied

Park, Mass.

Pacific Uranium Mines

Purcell & Co., 50 Broad¬

6% Portfolio—Bulletin—Edward A.
way,

Conn.

Wyoming—Bulletin—Oil Statistics Co.,

Husky Oil Company of

Old

Sugar Broker and

born &

Salle Street, Chicago 4, 111.

South La

Northern

Rails—Bulletin—Francis I. du Pont & Co., 1 Wall Street, New
York

Group Offering
Turnpike Bonds

Corp.—Memorandum—Lee Higginson Corp.,

Household Finance

9th.

March

on

Lehman-First Boston

Broadway,

N. Y.

Royal Bank Building, Toronto,

Propane

Suburban

and Warner &
74 Trinity Place,

N. Y.

Liquid Petroleum

—

Company—Analysis—Ira Haupt. & Co., 111

Babson

120

day
Sugar

•

with particular reference to
Foote-Burt Company, Giddlings & Lewis
Company, Kearney & Trecker Corporation,

It"—Automation

the Cross Company,
Machine

Harold B. Smith

Broadway, New York
City, after an extended illness.
Birthday greetings are in order as
he will be celebrating the great
Co.,

McKinnon, 11

Analysis— Thomson &
Street, New York 5, N. Y.

Wall

Broad¬

New York 6, N. Y. and 1-chome, Tori, Nihonbashi,
Chuo-ku, Tokyo, Japan. Also in the same issue is a discus¬
sion
on
Amending Foreign Investmnt Law and Japan's
Do

Insurance

Western

231

way,

Robot

Inc.—Brochure—Kidder, Pea-

& Co., 39 South La

New York 6,

Japan's Motion Picture Industry—Analysis in current
"Investors Beacon"—Nomura Securities Co.,, Ltd., 61

& As¬

Company—Bulletin—Wm. H. TegtSalle Street, Chicago 3, 111.
General Refractories Company — Analysis — Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y. Also available is
an analysis of Mechanical Handling Systems Inc.
General Telephone Corporation — Brochure of company's his¬
tory with a supplement of financial information — Paine,
Webber, Jackson & Curtis, 25 Broad Street, New York 4,
Life

Franklin

Hoover

Pershing &

Street, New York 5, N. Y.

body & Co., 17 Wall

Great

returned

has

New York 4, N. Y.

Stores,

Department

Federated

16 Wall Street, New York 15,

pany,

"Let

sociates, Inc., 52 Broadway,

New York.

Booklet—Harris, Upham,
Broadway, New York 5, N. Y.

Investing in the Drug Industry—New

Smith

B.

trading desk at

to his

Mississippi

Company—Brochure—D. M. S. Hegarty

Evans Products

meyer

Industry

Cement

Harold B. Smith
Harold

Building, St. Louis 1, Mo.

Valley

Atomic

Ont., Canada.

Happy Birthday to

memorandum—Link, Gorman,

Salle Street, Chicago 4, 111.
Christiana Securities Co.—New Study—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.
Columbia Gas System, Inc.—Annual report—The Columbia Gas
System, Inc., 120 East 41st Street, New York 17, N. Y.
Consolidated Electronics Industries — Memorandum — Harris,
Upham & Co., 120 Broadway, New York 5, N. Y.
Day Brite Lighting, Inc.—Analysis—Scherck, Richter Company,
320 North Fourth Street, St. Louis 2, Mo.
Peck

Dealer-Broker Investment

Co.—Card

Indiana Gas

Central

Jersey Turnpike,

with the
which is
and will
the Bronx, New York

turnpike will connect
New England Thru way

under construction

now

extend from

City, to the New York-Connecti¬
cut State line.
The Connecticut

Turnpike
is
scheduled to
opened to traffic on or before

be
Dec.

31, 1957.
addition

In

to

the

and other
turnpike
the

toll

revenues

bonds just
For

fjomtwa Jtecixrtties

Banks, Brokers & Dealers:

We make deDendable markets in

385

Public

Also NEW ISSUES

they

appear

2400

Members: N. 7. Security Dealers Association
74

Trinity Place, New York 6, N. Y.




-

4c

or

376

BOwling
Head

Green

Office

1958, at
revert to

gallon unless extended by
Assembly of the State.
are
redeemable on
after July
1, 1961 at prices

9-0186

Tokyo

bonds

ranging from 105% to

Broadway, New York 6, N. Y.
Tel.:

covenanted

per

The

without obligation
61

State has

the General

Japanese Stocks and Bonds

-

The

State.

per gallon until July 1,
which time the rate will

on

Troster, Singer & Co.
HA 2-

N.A.S.D.

Material and Consultation
as

gasoline

gasoline tax rate will not
be reduced below 4c per gallon,
the tax in effect prior to July 1,
1955 when it was increased to 6c

Broker and Dealer

Utility • Natural Gas & Industrial Stocks

offered are secured by
tax receipts of the

the

that the

©o., Xtd.

•

Member

•

DEPENDABLE MARKETS

of

Interest on the bonds

DEMPSEY TEGELER t CO.

is exempt

present
Federal income
under existing statutes.

from
taxes

100Vz%.

Volume 183

Number 5512

.

.

The Commercial and Financial Chronicle

.

(1057)

dustry

Nuclear Science Impact

power

recognizes

will

vital

to

(not

compete

fossil

Upon American Industry

fuels.

demand
if

By LAUCHLIN M. CURRIE*

fossil

with,
With

for

nuclear

supplant)

or

our
growing
it is doubtful

power,

fuels—and

hydroelectric
maintain the proper

power—can

Vice-President, Union Carbide Nuclear Company

that

day be absolutely
support and supplement
some

growth rate, hence nuclear
is

Nuclear expert expects major impact of nuclear energy upon
American industry to occur between now and 1980, and to

Our U. S. Atomic Energy Com¬

thinking. Future nuclear, power depicted as
spite of present competitive fossil fuel deposits.

in

large reactors to produce electric
More efficient nueleonk uses where military and not
cost factors will control seen in: special
land, air and sea
transport units; heating industrial plants and domestic areas;
operating industrial plants, and furnishing fresh water from

It is my

very
can

nu¬

already had a
important impact on Ameri¬
industry and is destined ' to

have

even

more

effect.

to

us

nuclear

be

Dr.

L. M. Currie

the

of

impact

an

wasn't

to result in

as

knockout."

"technical

far

so

classified

Some

he

when

wrong

bombs

"Atomic,"

as

But I shall not attempt to

time

spend

atomic
bombs. When two countries (like
U. S. & U. S. S. R.) have atomic
weapons
whose
power
is
ex¬
pressed in millions of tons of
"ordinary" high explosives, there
is

little

cept

nation

discussing

room

dare

discussion

for

point:

one

on

—

ex¬

either

can

afford

or

—

to use

The discussion of

such weapons?
this

point still has an important
impact on your life and mine.
For

our

purposes

it

today

is

convenient to consider nuclear en¬

under

ergy

general

three

head¬

ings:

This

twice

whole
but

field

15

research

—each

to peaceful uses,

other than power

Weapons

type)

and that in

this de¬

developments
in atomic power, and other peace¬
ful uses, will have to take second
place. The weapons program,
therefore, will continue to have
a very important—though perhaps
not too apparent — effect on the
our

whole

field

of

nuclear

and

your

whole future.

Russia

that

energy—

nuclear

the

has

companies

(or groups of
planning construc¬

—

at

own

expense

—

large reactors to produce

atomic

this

1975

figure

will

be

of

10, ever steamed, completely
submerged, by a submarine. Since
nuclear engines require no oxygen
for
operation,
nuclear-powered

generating plants will

submarines

fueled.

production

of

electric

power from nuclear reactors

nected
but

to

one

nuclear

vast

Actually

energy.

—

remain

sub¬

indefinitely.

One

may

Navy

wag

admitted

would

con¬

power
"grids" is
important uses of

of the

This

have

to

the

crews

Six

be¬

new

marines

surface

thermal

nuclear-powered

—

—

ever,

many

thermal

where

uses

efficiencies

are

strict

not

Continued

the

been and

not

are

appears as

not

a

being offered

to

the public.

of record only.

matter

power

has

Kerr-McGee Oil Industries, Inc.
4V2% Cumulative Prior Convertible Preferred Stock

is

Par Value $25
per

re¬

have

placement of the above Shares has been negotiated
by the undersigned.

Salomon Bros. & Hutzler

powetf.

SIXTY WALL STREET, NEW YORK
5, N.

demon¬

reactors

Share

•f

will

and

UK

Y.

are

Boston

is,

perhaps, further
ad¬
any other nation in
production of commercial power,

Philadelphia

Cleveland

Chicago

than

for—due

to

their

nomic situation

particular

San Francisco

Dallas

West Palm Beach

eco¬

they feel they
must have atomic power immedi¬
ately. Accordingly, UK is already

lion

-—

with

12-16-20

60-100MW
each.

watts)

build¬

program

a

reactors

power

One

to

These Notes have

not

been and

are

not

mil¬

(60-100

This

"on

goes

total

This
for

electric

units;

40%

and

announcement appears as a

being offered to the public.
matter

of record only.

will

for

captured

in¬
the

from

power

40%

by

replace

1975.

the

need

ish

units

practical

are

mercial):
these

doubt hat these

no

of

costs

units

standards—appear
British
from

perial

Valley,

California,

in

the

atomic

field, but
what
10

leader

a

Canada's

are

the

and

in




"

power

may

be

Salomon Bros. & Hutzler

Belgium, Hol¬

Scandinavian

coun¬

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

neither

natural

gas

—

renders

the

S.

to

produce

economic

nuclear

the

American

power

less

power,

by the undersigned.

the

asleep nor idle.
Though our present position in
respect to fossil fuels—coal, oil
and

placement of the above Notes has been negotiated

she just
develop
nuclear

nuclear generated).

tries

Direct

energy:

(nevertheless by 1980 10-

land

Promissory Notes due February 1,1966

years.

power,

of

4%

her

had

15%

Thorp, Wisconsin

River

hasn't

to

Thorp Finance Corporation

late entry

a

power

is

too,

nuclear

costs

Hudson

under-estimate

of

our

different

are

Valley!).
Germany has been
the

from

to

—

(Water in the Im¬

own.

than

more

com¬

attractive, but

conditions

our

(i.e.

power

not

may

Brit¬

U.
by Mr. Currie before the
Soap and Glyc¬
Products, Inc.
American

$5,500,000

40,000,000 tons of British coal.

There is

susceptible to

pressure

in¬

Boston

sub¬

will

under

that

•

efficiencies

224,880 Shares

Direct

to

they
permit

(undoubtedly) be
followed by nuclear-powered sur¬
through the turbo-generator sys¬
face vessels
airplane carriers,
tems
it is perhaps one of the
troop transports, tankers, com¬
least efficient.
There are, howmercial vessels—perhaps in that
low

of

announcement

or

that

to re-enlist.

NOT A NEW ISSUE

of

From

Juan, P. R.,

previous submarine, submerged or
That trip
represented
the greatest distance, by a factor

that

and

San

surfaced.

merged almost
But

These Shares have

commercial

for

France

power

vanced

field
weapons

address
cf

the' other hand, five large

On

be

the world

nuclear

of

and

Canada,

Power

brought forth a powerful genie to
do his bidding: in the nucleus of
♦An

are

by

power

U. S. power

cause

today.

built

—

over

position will be within

imagination of the American peo¬
ple.
This is hardly surprising.
Aladdin, Thief of Bagdad, had his
lamp which — when rubbed —

Association

just figures and
just a! start.
(by Adm. Strauss,
Dec.
14,
1955)
that

times

to

building major units.

into

n

to

the

truly

reactors

base

a

stration

don't

Atomic

The

dozens

nation

power

establish

nuclear

just mentioned atomic
weapons. I cannot — and should
not—go further except to state
that our defense requirements will

erin

units.

power

100

London

nuclear-

navy.

it traveled 1,300
miles—submerged
—and bettered the time on
any

steam" Oct. 27, 1956. By 1965 Eng¬
land expects to secure 6-7 V2% of

have

uses

These

American

an

submarine

than

stand

the

all

use

production

their

Atomic

dustrial

power.

way
a
major program for con¬
struction of production (or proto¬

produce

program,

New

in

energy

is

it

we

to

major

Applications of nuclear
energy

old,

reactors

planned for

III

only

ura¬

more

nuclear

where

addition

In

is

considers
of

years

markable

ing

Second

of

figure.

one

under way

on

have

pounds of coal.
ratio

this

When

Atomic power

program

I

equivalent to

energy

theoretical

Atomic weapons

fense

powered

is estimated

a

volume

same

million

II

be cared for

electric

Saver"—which

I

I

them.

fingers

my

uranium

one

a

wag

"Hydrogen" and "Where is Every¬
body."
much

the State of Deleware.

Cleveland,

reactor, would yield heat energy
equivalent to 100,000 pounds (50
tons) of good steam coal.
Engi¬
neers talk very glibly of securing
(commercially) from one pound

(2) that its abuse may well cause
such

are

megawatts (H)
$250,000,000.

They
are simply planned to give us the
operating and materials data re¬
quired for erection of optimum

of five

this, figures

opment of

all of Nassau County,
total requirements

the

a

of

factors controlling our
today and tomorrow, and

world

I

con¬

nium 235, completely fissioned

en¬

of

one

major

If

candy mint
weights
grams—the flavor is unimpor¬

1.4

—

will

for

not intended to furnish

economical

servant.

remember

in

"Life

tant.

(1) that the
knowledge

ergy

or

twice

product and the forerunner

of many more units in the devel¬

Westchester

a

to

here
—a

justifylt only
by restating

use

are

500

their

you

and

development)

around

tion

like

County,
or

of

ished

require¬

power

all

|

bore, but I would like
you just a few that will
perhaps shock you enough for

"Im¬

belief

almost
cost

are

talk

electric
of

purposes.

The nuclear-powered U. S. Sub¬
marine "Nautilus" is now a fin¬

(Armour "Newsletter" December,
1955) by 1980 to 1985 25% of all

companies)

a

called

types of full scale
These units will pro¬

power

usually
to giye

pact" I can

my

powerful

a

reactor

(so

different

These

lamp—infini¬

a

supply

nuclear

duce

which furnishes

—

major

remember correctly, Aladdin's

In

the

of

word,

have

we

tesimal in size

lead

tary

cost to seven to eight
mills/KWhr—will be sufficient to
average

It

a

genie was sometimes had to
trol;. so is ours.

.

If, in the fol-.lowing, I ap¬
pear
to keep
repeating the
use

uranium

all planned for completion
by
Their combined output—at

are, admittedly,
these five units

and

in industry, agriculture and medicine of tre¬

has

the

and

In

reactors.

Mr. Currie pictures increasingly numerous peaceful

sincere belief that

energy

an

special

nuclear-powered units for trans-t
portation — particularly for mili«

1960.

five

mendous potential importance.

clear

taken

dominant factors. Such may prove
be true in the case of

to

megawatts
of
These five units

program, the AEC has contracted
for and started work on at least

power.

non-power uses

long

research

five-year

firms have financed five

water.

has

totaling
billion—ap¬

a

750

power.

reactors.

Report is

made AEC has started five research reactors and commercial

sea

proximately
electric
are

costs

quarter of

development of
data
and prototype
construction
and operation of nuclear power

must in

a

construction

another

ments

power

must.

mission

affect—besides military—our economic, social and psycholog¬
ical

a

at

—

9

Philadelphia

San Francisco

Dallas

Cleveland

Chicago

West Palm Beach

on

page

24

Financial Chronicle

The Commercial and

Thursday, March 1, 1956

.

(1058)

10

"if

financial Institutions' Role in

going to do it' by working
harder than we do, or by being
cleverer than we are, but by hav-

Undezwiiting Economic Growth

not

ing twice

ROCKEFELLER*
Vice-President, The Chase Manhattan Bank
By DAVID

I

and

indicative

to plenty

of buildings to house

a

looked to

and
are

today

our

one

the

nancial

which

institutions

mulate

business facilities

public savings.

,

decade

then to look at changes

spects,

annual

in

accu¬

Dur¬

dinary.

business.

must be added
inventories of goods and gold,

valued at an¬

other $140 billion.
How then has our economy

in

past generated the funds for
these tremendous stocks of capithe

extraordinary

the

of

because

total invested wealth.

our

which together are

industrial (expansion. It
is a central factor in all of your
calculations for the future.
And
so
it is with the economy as a

ing this period
nation's

(he

(joss product,
in
I

of

terms

advanced

?.s

from $283

j.:"

finance—to
locate the funds, the savings—has
been an ultimate limiting factor

bil-

of

0400
billion
today; living
standards have

nation, but of all nations

our

period of the industrial
Since the turn of the

the

from

David

Rockefeller

that around

century, it is estimated

tially and are
highest ever achieved any¬
where. Furthermore, great progjess has been made in almost all

$1%
here

in

toe

that we cannot hope to

tain

main¬

in the

3J a

ill the past is not

in itself

slackened pace at
given future time. In point

ur<y

the free enterprise econ-

Cf fact,
cmy

flirives

remain static; it
change, and like all

never

can

on

3'arms of healthy life, it must ever

and

,Vow

forward if it is

move

28%

In recent years, we

have become

forward the economic
Idee of this country. Today these
ti

our

future.

nutters

all projections

I have in mind such

accelerated population

as

growth; great innovations like the
htmessing of atomic energy,
which is only on the threshold of
its ultimate potential; and the ef¬
fective utilization of the resources
nnd effort which are being put
lato research for new
products
rod

new

things.
current
population and the
doing

of

ways

One need only look at the

growth of our
3

of

ate

change to

technical

or

con¬

other hand,

Without external financing,

the

a

now

expressed
of

hand,

recent years;

been

in

debt.

I must confess

the

1955

billion.
concern

this huge volume

over

consumer

that

some

total

at

rose

sustained.
that

Yet we must not forget
gradual further increase in

a

to

growth of the United States by
the productive investment of their
funds.
Their task has been, on

not

been

has

necessary

however, in

financial

country where there

a

banks and other financial in¬

are

facilitate
the complex transfer of funds from
savers, on the one hand, to; inves¬
tors or users of the funds on the
other. One comes to realize just
organized

significant

how
has

when

been

to

era

raise living standards
have
good

a

banking

and a capital; market as
being quite as essential in achiev¬
ing their objectives as good power

system

and

transportation facilities. With¬

out them,

savings cannot be chan¬
productive uses and a

into

neled

living standards is sharply

rise in

limited.

Financing Sources

many of you gentlemen here are
responsible—the automobiles, ap¬
pliances and other durable goods

When

we

look

closely at

more

the relationship of

finance to eco¬
nomic growth in the United States,
it is clear that the character and
role

of

financial

our

effectively utilized. This task
has

the

and

both

to

rehnjrpi initiative, skill,

hand

tne

the innovator—

volume

the

increase

of

to put such savings

savings, and
to

of

most productive use.

some

one
pre¬

it is to
principles
followed in the expansion of

are

debt,

consumer

Rather,

that

sound

that in the event

so

of

adversity neither borrowers nor
lenders will suffer unduly.
I am

Today there are some 21 differ¬
ent types of financial institutions
through which caoital is chan¬
neled. It is interesting to note that
more
than ha'f did not exist in
developed

any

form

a

institutions

as

that

practices adopted by
1955—particularly
maturity and down payments
lenders in

to

the volume of questionable
does not appear great;

stitutions

credit
but all in¬

with it have

concerned

special obligation to watch the

a

situation carefully and to see

ha'f cen¬

remains

this

the

that

case.

Sound Credit
As

matter

a

institutions

of

carry

a

fact, financial
sobering re-*

sponsibility in that they have the
to affect economic growth
manner, as well as

tury ago. The heyday in the de¬
velopment of new types cf finan¬

power

in the decade
private insti¬
tutions and the 'Thirties for those

positively.
Through over-exten¬
sion of credit, they may lay the
basis for a downswing in. which
all business suffers and economic

cial institutions lay

of the 'Twenties R>r

of

Investment com¬

government.

panies, sales finance companies
and private pension trusts, which

con¬

in the type of products for

level.

certain

be

Our

—might not meet this test. As yet

the underdeveloped areas

regard

hand, to mobilize the sav¬

holding the total to

conceived

steadily

most

only
rudimentary financial institutions.
People who have had experience

to

abl?

economic

a

living.

some

veloped countries which have

come

of

of

afraid

what a

sees

been

the

to

which

standard

and, on the other hand, to deter¬
mine how these savings could be

ahd difficult process growth
becomes in some of the underde¬

in

one

this contribution
one

have

to

a

higher

inevitable, if

is

to attain

ings of people of all income groups

slow

in trying to

contribute

the

extent

institutions

these

Ex¬
is only possible,

the

of

measure

is

This

economy.

a

rate which I did not feel could be

ternal financing

portion of their savings
which

larger

has

to $89

it has without outside credit.

have tended to concentrate

sumers

There

since 1945, they
have expanded fourfold and now
command assets of $38 billion.

been

credit is

amounts

problem with such debt is not

was a

today were not available.
In
more
recent decades,

1S00 to

loan associations,
has come in

and

other

the

homes

on

American

time when
varied industrial products of
It

savings

on

know, some $36

you

consumer

by the same token, the ownership
of homes and automobiles could
not have become as widespread as

by the fine old houses
you see in such places as Nan¬
tucket and the small towns of
England.

in

of

outstanding, while mortgage debt

as¬

$90 billion today. The great growtn

expansion of business and,

for the

typified

New

in

billion

$1.7

billion

are

between 1800 and the Civil
before the industrialization
of America got under way, some
35% of our total investment went
an

from

sets

debt. As

gage

debt

On the

was

doubling their size every
ade and have increased thmr

credit and residential mort¬

sumer

Americans

live in. Hous¬

That

close
dec¬

consumer

It

achieved.

going back to the pe-

homes.

have

our

Through it, individuals
in our American society are able
to enjoy the fruits of modern tech¬
nology.
This investment, on its
present scale, moreover, would be
impossible without the help of ex¬
ternal financing, particularly con¬

economy.

Today the $600 billion held by
institutions
represents
more than 20% of all assets in the

could

economy

War,

new

sub¬

rapid growth in our

be¬

a

come

Life insur¬
come

1

looks at it,

one

powerful influence in

to

have

matter how

investment by consumers has

we

companies

more

stantial and

riqd

into

of crucial

importance.

to

turn of the 20th Century,

et to push

dements figure in

of it,

other

and, as you know, this addi¬

way,

tional margin has been

note what
into. About
$305 billion, repre¬

interesting

invest¬

has left another

third to be arranged in some

ing is one of the main outlets for
people's savings, and interestingly
enough the proportion invested in
homes today is not radically dif¬
ferent from what it was at the

increasingly conscious of the pow¬
erful and dynamic elements that
r

But that

ments.

the

making

ganizations

stitutions

sents the homes we

maintain its vigor.

j

is

It

billion

course,

loan associations.

and

directly by the individuals or or¬

trillion.

$1 1/10

of

to

this huge sum has gone

a reason

in anticipate a

f

or

period before us. This
natural fear, but rapid growth

$2V2

and,

ance

result, after allowance for depre¬
ciation and obsolescence, is a na¬
tional stock of capital which has
cf the technical arts. There has
been some concern expressed that increased more than fourfold since
1900 and in terms of today's prices
we have been moving ahead at a
is valued at close to $1,100 billion,
Face

Consumer Debt
No

$31 billion;
have had the
extraordinary expansion of life
insurance companies and savings
from

total investment has been financed

The

States.

United

the

owners,

told, about two-thirds of our

All

invested

have been

trillion

home

businesses;

through saving, have gained a
sizable equity in their homes, and
more recently in their cars as well.

revolution.

substan¬

3;sen

not only

the economic growth

on

in 1946 to

n

The ability to

whole.

prices,

5.955

Looking back, it is apparent
that a major proportion of the
funds have come through the di-

their

that with the exception

moreover,

growth of their assets in the past of 1951, such investment has shown
half century. From total assets of an uninterrupted trend upward. In
this sense, consumer investment
less than $20 billion in 1900, all
types of financial institutions have in the postwar period has helped
maintain the pace cf economic ex¬
grown to a point where they com¬
mand some $600 billion in assets
pansion.

tal?

finance in

actually larger than that of
It is a significant fact,

was

huge sums of capital to inc ustry

our

expected in the future.
of you in this room need
be reminded of the significance of

In¬

plant and machinery.

new

deed, in 1955 consumer investment

These in¬

stitutions have been able to supply

third of

None

by the

appliances and the like has been
as
great in recent years as has
been the investment by business

representing one-

indeed,

And to it, of course,

be

seems

extraor¬

raost

use

indicated, the
investment in autos, houses,

valued at $375 billion—a huge

figure

past, and
which may

the

in

financed

been

which,

many d re¬

:n

for

of credit

rise

As I have already

today. The assets cf commercial
banks, for example, have increased
of these institutions.
from $10 billion to $204 billion;
assets held by the trust departbe channeled into productive use?
This matter of growth and the
rect
reinvestment
of
corporate ments of banks in their fiduciary
It is this question which I wish
rhanges which go along with it
profits and individual savings. The capacities have increased from $3
to examine with you today—first
i re very much on our minds these
businessmen over the years have • billion to around $90 billion; mu¬
to see how economic growth has
tual
savings banks have grown
elays. We have just completed a
poured back half their profits into
as

trend to wr,ich financial insti¬

consumer.

sistance from other types of li-

path we in the
long followed

I

to mention.

me

tutions have contributed: namely,

greater extent for as-

a

permit

want to comment, however, on

ao

has

it

profits,

back

about others that time

as

does not

capital requirements through de¬
preciation allowances and by

ploughing

well

as

stead, to the extent that industry
has been unable to finance its own

United States have

hold $600 billion,

is cited

way

the national capital

up

This is

them."

20%, of all American assets
of changing character and importance

institutions

inanimate slaves

The

in, of power to drive them,
of communications between

them

credit principles be used in meeting
growing financing needs. Mr. Rockefeller believes: (1) Ameri¬
cans should resume, unlike last year, the historical 8% savings
trend vital to financing a dynamic economy; (2) commercial
banks were never in better shape; (3) it's unlikely long-run
interest rate trend is upward; (4) real 1955 Gross National
Product will be $535 billion and 10% in capital investments
would be required then to support employment and growth;
(5) sound consumer credit growth is necessary, and (6) gold
supply is adequate for credit expansion. Fact that financial

<

build

is to

of machines,

growth in urging sound

«

as many

to assist them.

institutions' role in economic

charts financial

official

Bank

do, they

duce twice as much as we
are

Executive

children are going to pro-

our

could be told about each of these,

percentage of new capital they
have been called upon to raise for
industry by offering stock and
■ bond issues to the general public
has been considerably smaller than
in- the period prior to 1929'. In-

puts it:

"Economist"

London

the

playing an increasingly

have been

important role in the capital mar¬

in

an

adverse

growth grinds to

halt. This is
particular by

a

influence held in

an

commercial

the

system,

banking

since banks not only channel other

curing the past two decades,"

people's savings into investment,

had their first big period

of growth

in the 'Twenties.

of course,

but also have the ability to create new credit. Looking back his-

ket

It

was,

considerable c.uring the 'Thirties that the whole torically, no one can deny that
life for the individual. Today the modification over the years; In the complex of Federal lending insti- the great depression was intensiwithin our means to advance al¬
Their origi¬ fied by unsound credit practices
19th Century and the first decade tutions was created.
total stock of consumer durables
most as
rapidly in the coming
preceded it.
There were
nal purpose was to a considerable which
of the 20th Century, investment
decade
as
we
did in the past, is valued at about $150 billion, and
other factors at work, too, but the
extent to combat the denr^sion.
the
yearly investment made in banking houses played a dominant
fjbould we do so, the economists
1929
crash of the stock market
financial role in industrial expan¬ but many of them have continued
them by consumers is as great as
tell us we can expect a gross na¬
served to set off the start of the
as an important part of our social
Frequently it was the in¬
the annual capital outlays made sion.
tional product of between $525 to
downward spiral. Subsequent de¬
and financial fabric.

clude

that

least

at

we

f&dO billion by 1965
cnange

have

it

(assuming no

In all these estimates of the fu-

richer,

a

easier

rapidly

investment

growing

relates

to

property owned by government as*
for example, schools, roads, sewer

tare, however, there is one vital
dement in the background which

systems, parks and other facilities

i* seldom discussed, but which has

ments.

caused
c oncern

people some
when they hear what seem
thoughtful

like extravagant

iire

expansion.

prophecies of fuI

refer

to

the

problem of financing economic
growth. Is it possible, they ask,
(j generate enough savings to per¬
mit growth to continue at so rapid
u rate, and how will these savings

built

which

Today
provide

the public

to

than $110

the

most

our

stock

*An

address

Economic

by

Mr. Rockefeller before

Club

1*56.




of

Detroit,

Feb.

27,

these
essential

are

govern¬

facilities
services

valued at
in

some

significant
of

that which is
tal

local

more

billion.

The final and

invested

respects

element of
wealth is

represented by capi¬

goods—i.e., by those basic fa¬

cilities for the production
tribution

iae

and

state

by

of

have

undergone

goods

and

and dis¬
services.

This is the seed corn from

which

all other products must grow.

As

a

who took the
formation of new

bankers

vestment

another
of

sector

Growth

for

by business.
Still

in prices).
Financing

make

which

initiative in the

often exer¬
cised a significant influence on
management as well. One has only
to recall the part played by the
elder J. P. Morgan, by George F.

companies

and

they

Otto Kahn, to mention
conspicuous names, to
realize what an important
role
the investment bankers of that

Baker,
but

a

or

few

day had in the growth of some of
our
great industries such as the
railroads, steel and electric power.
In the

past two

or

three decades,

have
instigators
of new enterprise, and while they
continue to fulfill a vital role as
investment

become

less

banking
active

firms

as

financial advisors to industry,

the

Since the

of

way

new

'Thirties, little in the
types of financial in¬

stitutions has been

developed. But
existing institutions have forged
methods

new

deal

to

with

our

changing economy and our grow¬
ing role in the economy of the
world. To give but a few exam¬
ples,

is the wide develop¬
commercial
and insurance companies,

there

velopments stunted the growth of
the

nation

for

decade.

a

nately, we learned
experience/ and I
will

never

again

Fortu¬

lot from that
hope that we
let down our

a

guard against credit excesses.

that

Assuming
headed

for

downswing,
task

of

a

we

major

what,

then,

finance

ment of term loans by

the

banks

nomic growth

are

in

not

economic

will. be
the

of the future?

eco¬

This

of securities
and
brokerage

will, of course, depend on a num¬

firms, lease-back arrangements on

hears all sorts of conflicting pre¬

the

by
the

direct placement

investment

part of industry to insurance

companies and pension funds, and
a

host of changes that have revo-

lutionized
gages on

the

ber

of

An entire story

factors.

One

dictions about the outlook ahead-

that
on

a

shortage of savings looms

the horizon; that we are

in for

inflation for will it perhaps be deflation?); that interest

handling of mort-« steady

housing.

unknown

Volume 183 «Number 5512-.

rates

bound

are

forth.. While

to

rise;

no one can

.....

and

The Commercial and Financial Chronicle

low.

so

of

with

say

Rather, savings

8%

income

of

the order

has the power to control the rate

active role

taxes

at which

team

on

after

ap¬

certainty where-the truth lies, it pear necessary if economic growth
is, I think, possible to form intel¬ is to move ahead as we desire. •• •
ligent judgments based on a look*
"
Stable Savings
at current trends in the light of
the past.
Fortunately, I do not think we

•

need

Credit Needs

despair

of

achieving

to

Growth is a
the com¬

play.

level, although the financial com¬
munity may have to exercise some
ingenuity to bring it about. Let

scientists, the
Supply
producers,
the distributors,, and
There is nothing in the picture* the specialists of finance.
None,
today that should prevent banks including the men of finance, can
from creating additional creuit as
play merely a passive role. Fi¬
respects,

necessary.

our

-

•

In

many

nance

must

bapks

commercial

move

to

WILMINGTON, Del.—Laird &
Company Corp., members of the
New

anticipate needs and
them—on

meet

the

11

Laird & Co. Corp.
To Be Formed

effort,' requiring

Gold

It-becomes

this

.

expand.

can

1

■

Future

bank credit

bined talents of the

*"

r

(1059)

be

in¬

York

formed

Stock
as

Exchange, will
March

of

1st.

Of¬

ficers of the firm, which is located
side, as well as with sav¬
in the Nemours Building, will be
it clear- that the credit needs of
are strong, man-" ings.^,That
• tory— reserves
is what commercial
our
economy
will expand very us look for a moment at the past agement is experienced, and port-' banks have fried to do with the George T. Weymouth, Chairman
of
the
Board;
Martin
Fenton,
greatly in the next decade. If by history of savings in the United folios are sound. Banks will, need development of different types qf
E.
Carroll
Stollen1965 we are to realize a gross na¬ States. A recent study gives us for more capital over the next decade, medium-term loans and in othCr President;
werck,; Vice-President, Secretary
tional- product 01 $000 LnnlOtl, or the first time adequate informa¬ but much of this can be generated specialized fields. Our own
Bank,
and Treasurer; 0. Chester
tion on this matter... It shows-that internally; Then, too, the nation's for
Jones,
more,-we must be prepared to see
example, in the past two years
Henry H. Silliman,
Walter G. *"
both business investment and con¬ if one ignores,? abnormal/periods gold supply, which is the ultimate has retained an expert on atomic
war
sumer
investment* rise very sub?; * of
and serious
depression; basis for.-bank reserves, appears energy
to
anticipate
financial Guy, Benjamin B. McAlpin, Al¬

First, the facts before

make

us

in the best shape in their his¬

are

vestment

.,

.

Americans

stantially. Indeed the staff of the
Joint Congressional

Committee on
the .-Economic Report, which has
taken a careful look ahead, sets
the

vestment

at

is

rise

a

in¬

business

enough is 8%-—just what

be required for the future! Thus,

deposits.

almost

it

around

in

months

This is only about a third
and it may turn out
be unduly conservative. Finally,

year.

heavier invest¬
ment by government, particularly
by state and local governments in
public facilities.
Here the total
might run as high as $17 billion a
year, or an advance of 55% over
all, it looks as though a

All in

rise in total investment of 40% or
more

be needed in 10 years.
wonder how an increase

may

One may

scale

this

on-

financed.

be

can

First,. business -in an expanding
economy
can
count on greater
profits, and, above all, on a large
increase
in
the
cash-throw-off

consumers

ble in their

and,. depletion.
that each of you has
seen
your
depreciation account
increase -enormously in the past
isn't

What

decade.

always

ap¬

preciated is the fact that this has
happened in all lines of business,
and that last year fully one-third
cf'the cash needs of United States
corporations were met from this
source.
The amount will increase

and

.further in the decade ahead,

corporate depreciation allowances
in' 1965 may be X Vz times what

they 'are today. Even so, and even

permit indus¬

if increased pfofits

try to
plough back more, the
amount of external financing re¬

quired

also

mands

will

de¬

investment

meet

to

be

considerably

greater in absolute terms than it
is today.
Let me cite only one industry
which

rather carefully—-the pe¬

troleum

the

in

recently

has

Bank

our

studied

industry

That

industry.

past five years

has made

this mat¬

the

have,

and

You recall that it

fashionable in the 30's to
needed

consumption.

There

element

an

to say

have

may

truth

of

that

greater

was

in

this

our

be ignored.

More

this
;;

equa¬

Savings Needed

financial

institutions

responsibility

„:

.

have

in helping

this

balance

investment

and

consumption.

in

so

the„ next

seek

must

to

be

can

regard

decade* theyand ex¬

counted

in

should be able to look for
of

needs

American

generated, I find it hard to fore¬
see
any
long-run upward trend

led

interest

in

rates.

Nor do

I

a

the

it

with

and

-

the

a

Federal

ter

great job to be tack¬

years

The

unique

mark

and

As

ess
no

a

era

by —that

Reserve

the

have

on

we

the

will

confident

the

we

of

look at the complex proc¬

economic

tribution

question but that our financial

institutions have

a

significant

of

C.

F.

Childs &

Co., Inc.

Ronald Killie Willi

j

This announcement is not an

savings

may amount to
$5 to $6 billion in 1965, compared
with $3 billion today. Then again

expect

we can

ciated with Nesbitt, Thomson and

of

to-

Company,
New

these
both

York

Inc.,

25

City.

Broad

Mr.

the

to

families

increased

of

number

moving

into the middle
brackets, since they can

income

expected

families

to

in

this score,

brackets.

however,

City Bank and prior thereto with

a

Dominion

Securities

Corporation.

ojjer ojsecuritiesjor sale or a solicitation oj an ojjer to buy securities.

February 29, 1956

institutions

problem.

Southwestern Public Service

Company

$10,000,000 First Mortgage Bonds, 3.35% Series due 1981
120,000 Shares 4.40% Cumulative Preferred Stock

On

Par Value $25 per

financial
something of a

face

families

New

Share

our

coming

capital expenditures in the United
States of $24 billion, of which

into this group often tend to spend

$20 billion was generated
internally.
But in the next 10

to

some

years

we

estimate

that

United

petroleum companies, not
counting investments outside the
United States, must spend in cap¬
States

billion, and of
this they will be required to go
to the capital markets and other
outside sources for at least $10 Vz
billion.
These are huge figures
ital

outlays $73V2

indeed.

estimate that busi¬
ness, homeowners, and state and
local governments
may need to
borrow as much as $35 billion in
All in all, we

1965, providing that our economy

relatively high
levels of employment. Where will
all this outside money come from?
Ultimately it must come from two
sources: the savings of individuals,
and the creation of new money
continues to run at

by the banking system. The criti¬
cal item, of course, is the savings
individuals.

of
'

Last

viduals
far

year,

indi¬

saved about $17 billion—

short

of

the

needs

for 1965.

ment

all-cut

sumption.
Cn

taining

adequate
ahead

decade

manageable.
the

order

task

?25
main¬

savings

$30

in

from

savings

billion

a

on

the

growth

the

If

economy.

an

accrued dividends, respectively,

February 1, 1956

Copies oj ilte prospectus map be obtained jrom such oj the undersigned
(who are among the underwriters named in the prospectus) as may
legalty ojjer these securities under applicable securities laws.

year

be needed by 1965 to support

of

share for the Preferred Stock

the

may

savings .return to

per

plus accrued interest and

perfectly

seems

Personal

of

of

8%

in

rate

relation to disposable income, our

goal
we

be realized. In

can

must not

mercial

any

event,

forget that the

banks

will

also

a

contribution throughout this whole

period
new

through

credit.

tion of

creation

new

money

credit

needs

—

the

—

new

help

to

of

ex¬

an

panding economy. If banks failed
to do

this, the economy would be

rigid
is to

in-the

money
see

straitjacket

of

a

supply/ The problem

that the increase in bank

represented only 6% of

growth and does not exceed

actually geared to

eco¬

it, thereby causing price inflation.

rate, if extended into

the

future, would probably prove

too

Federal

is

the

job

Reserve

entrusted

System,

to

Blair & Co.

Eastman, Dillon & Co.

the

which

Blyth & Co., Inc.

Incorporated

of

It is the special func¬

these banks to create

deposits
meet

the

Dillon, Read & Co. Inc.

com¬

make

nomic




100.25% for the Bonds

con¬

|
the

balance

That

this

opposed "to

as

is

Savings

Prices:

done

be

to

credit

their income after taxes.
at

needs

smallest since

This total was the
1950 and

More

persuade them of the long-run
advantages of saving and invest¬

confined

..

Americans as

heavily.

Kidder, Peabody & Co.

Harriman Ripley & Co.

Goldman, Sachs & Co.

Incorporated

Lazard Freres & Co.
Merrill

[

1

Carl M. Loeb, Rhoades & Co.

Lynch, Pierce, Fenner & Beane

Stone & Webster Securities

White, Weld & Co.

Corporation

G. H. Walker & Co.

"

Smith, Barney & Co.

Union Securities Corporation

The Milwaukee Company

Rauscher, Pierce & Co., Inc.

was

formerly with the First National

New Issues

than

more

save

lower

Street,

Killie

growth of savings

a

asso¬

am

on

was

Ronald Killie has become

I

that the con¬

finance

>

Nesbilt, Thomson Co.

in

positive and an essential one.

ard

Prior to joining Bartow Leeds,
Watson was associated with

,

their

more

even

back

will observe

days,

growth, there is

of

William

Mr.

it slip

leave

generations

looking

morrow,

member

department.

I have the,

the future than in the past.

foresee¬

a

Co., 57

will be manager of the municipal

growth of America

the free world

&

opportunity

live in.

they

Watson,

Leeds

general partner effective March 1,
1956, the company announces. He

of finance

men

future.

able
.

in

production and distri¬

bution lines.

position to adjust the

imnrobable

the

also

availability of bank credit, drastic
changed in rates in this country
seem

on

*

Street, New York City, since Jan¬
uary, 1953, will be admitted as a

ahead! And 'not
all of the romance, the inventing,
the
pushing into new frontiers
will fall to those of you who cen¬

think

Thomas

Bartow

world.

in

dissolved.

In Bartow Leeds & Co.
.

position to contribute adequately
to
growth .throughout the free
There is

be

Thos. Watson Partner

lending techniques—if
industry is to be in a

new

Comptroller, v

more

institu¬

done—new

be

to

tions,

Much

and

•

larger

a

pesnion funds

be

will

international finance, incidentally,
is
one " where
we
have
only
scratched the surface.

the

partnership of Laird & Co.

All told, the net increment

funds.

due

The

this

flowing into
mutual savings banks and pension
in

fi¬

exports of machinery and
capital items. This area of

nance

of

one source
on

the fast-growing life
industry. Moreover, we

is

insurance

volume

To

encourage

pand savings. Certainly
that

between

Treasurer

or¬

supply of savings and bank
credit on the other.
Looking to
the period ahead, and the amount
of savings that are likely to be

System in

:■■■,,

achieve

do

type of
to- help

new

a

—

designed

member

penny, Jr., Vice-Presidents; and
James F. Don eg an, Assistant

Finance

faith that they will not let

Neithpr side of

us

ganization

Nobel,

W. H. Geer, and Edward L. Win-

form

to

in this

other.

great

Corporation

Detroit,
Overseas

improved knowledge and ability
to influence the business cycle,

and

Our

a

of

American

drastic fluctuations in rates. With

are

balance

proper

hand,

a

Bank

the

balance between

a

economy—a

can

tional

growth, on the one
consumption on /.the

to

investment for

tion

other

J.

Exchange, Hugh C. Wallace, Ralph

recently joined with four
banks, including the Na¬

we

in

quate savings in normal times
essential

And

likely that there will be a re¬
turn to the abnormally low levels
of the 30's and early 40's. It would
take a major upheaval to cause

during a period of serious unem¬
ployment, but the fact is that ade¬

suspect

I

on

thinking

was

these

All

'

Run Interest Rates

be flexi¬

discourage thrift and
what

Long

-

to

need

savings.

may.

$250

matters, of course,
bearing on interest rates.
Fundamentally, rates are deter¬
mined by the interaction between
capital needs on the one hand, and

businessmen

economists will

became

.1

.

Neverxneless,

Bank

fred

needs in this important new field.

other

have
begun to
they, did in the

than

past year.

ter of

abnormally
in the first two

1956, there is evidence

more

be needed.

have to grow to
billion in 19d5 as
compared with $187 billion today.

tnat

were

that

depreciation

from

of

probable

even

save

been

level.

current

1955

low; indeed,

1955,

must plan on

highly

appears

Consumer investment ■—
autos, houses, appliances and the
like—is
placed at $66 billion a

the

course,

decade

prices.

we

will, of

to

seems

a

savings

to

same

.

50%, and it makes no allowance
for
the
probability
of
higher

over

have, tended

to save
fully . adequate.
Under present
proportion of their -laws-, our'gold supply could sup-v
incomes year in and
year rout. : port a- doubling of bank deposits
That
proportion
interestingly to $400 billion. Nothing like this

about the

of

$65 billion

That

hence.

of

rate

annual

-

The Commercial and Financial Chronicle
12

..

Thursday, March 1, 1956

.

(1060)

Long-Ran Interest Rate Trend
And Currency inflation

added

of forced

element

an

the

into

been

keep interest rates down »n4 predicts unintended
higher money rates, than would prevail under stable currency,
in next 20 years. Referring to countries unsuccessful in keep¬
ing interest rates low, New York banker attributes depleted
savings to growth of social security and high, progressive
income taxes, and increased borrowing to: (1) encourage¬
ment of consumer credit growth; (2) rising prices and faith
in Government's ability to forestall deflation instigating flight
into equities and real estate, and (3) favorable tax treatment accorded interest charges on bonds* Mr. Johnson recommends,,
lowering of income taxes on interest and other forms of income

?

People recently have been spec¬
ulating on the possibilities of a

in

and

in

reduction

Re¬

Federal

the

vl

intensify

serve's discount rate, to
'■

pressures on
lend

banks to

freely.

more

to

safe

it is

And

that, if

say

business

fal¬

for

want

ters
of

credit,

for

any

or

other

reason,

tne

Federal

Re¬

to. the

add

to

credit

supply.
other

the

On

should

hand,

uPward

Norri.OIiverJohn.on

lend.

be¬

object of public concern,
feel bound to

an

the authorities may

little more
But I did not

charge
money.

tell

to

will

which

you

but

jump,

their
here

for

a

come

the

way

rather

to

cat

guess

about the general direction she is

pursuing. In other words, what is
the longer drift of money rates?
It is not wise to become

so

en¬

in the details of day-to¬
operations that we lose the
longer perspective.
We need to
grossed

day

have

least

in

the

operating

borrowed

the

mind

the

on

concern

of

longer

to all classes of

institutions

financial

deliberating
length of portfolio

the proper

commitments.

is

It

also

of

of

been
out

util¬

ity corporations looking forward
to growing business and working
out plant expansion programs.From

early

June, 1953, up to
August of 1954 the Treasury 30year 3Vis moved from a price of
98V2 to 112.

Then in the next 12

as

1033A.

I doubt that the rate of

change in bond prices and yields
is going to be as great as a nor¬
mal thing in the future
during 1953 and 1954.

In

and

clear fact

all recognize is that

we

credit

flexible

policies, dedicated
steadying
the
general
and general prices, in¬

toward
economy

tensify

bond
price
and
yield
movements
beyond the propor¬
tions

we

great

many

had

in

difference

experienced

years.

the

A

for

like low money rates as a
matter of convenience in manag¬
ing swollen public debts and as a
matter of public policy under the

theory—quite mistaken—that it is
the people who are poor that bor¬
row and the people who are rich

timing of bond

flotations

by corporate borrow¬
ers,
or
of long-term purchases
and sales by institutional inves¬
tors,

can

make

or

save

a

lot

of

But looking beyond these

money.

jcyclical swings, what is the under¬
lying

drift

rowed

The
been

value

of

bor¬

long-prevailing theory has
that

capital

creased

them

the

money?

declining
of

in

rates

money

drift
rises

as

the

and

are

in

a

efficiency

as

the

in¬

well-being of people gives

more

capacity to save. These
forces seemed to be at work dur¬
ing the 19th century in the United

Kingdom,
•An

Real

in

address
Estate

the

trend

natural

The

lend.

that

United

States,

is

toward

higher rates for borrowed

money

in

where in¬

economy

an

taxes are high and progres¬

come

sive, where deflations to the ben¬
efit of creditors are rarely if ever
and where the lender
of money at interest is up against
a
"heads you win, tails I lose"
permitted,

proposition.

and

Mr. Johnson at the
.Finance
Conference.

Brooklyn, N. Y., Feb. 24,




1956.

be

But

been

body marches

the

on

over an area of three blocks, 20 feet apart,
reception, they don't seem impressive.
Nevertheless, at the reception of the Italian President, the
drum and bugle corps of the Air Force, really stood out. Attired in

air force

and

wages

would

with the

crease

in

In

the

Rising

has

income

down

rates

eventually re¬

good

interest rates than
prevail under a stable cur¬

terest

have

sult in higher
would

.

holders
All

rency.

Let

cite

me

few facts.

a

of

low

rates during the Great De¬
pression and World War II tried

have

artificially

money

to

the low

keep
but

after

rates

sooner

later

or

the

had

to

give in. Canada broke loose from
Wz% in 1949 and now is at 2%%.
We broke loose from l/z% in 1946
and

stand

now

at

2%%.

The

United

Kingdom, which had a 2%
discount rate (with one brief ex¬
ception) from 1932 to 1950, today
has

discount

5%%

a

Zealand, which had
count rate from

rate.

1941

New

1%%

a

to

dis¬

1953, to¬

General

sponding
In

in

a

roughly

corre¬

I

United

States

short-term

on

such

open

average

market

U. S. Treasury bills,
have risen in eight of the last nine
paper,

years.

as

Bond

ernment

toward

policy
the

of

debtor,

chronic

that

deflated.
until

it

this

And
is

demand

for

prices have

drifted

will

radically

confidence

—

adds to

—

equity forms of

sav¬

The

inflationary price drift sub¬

tracts from
lar

saved

the

value of the
lent

and

dol¬

adds

and

income

where

tax

applicable

makes it all the worse.

Hence in¬

and

bonds

on

savings

deposits have had to rise to main¬
tain

competitive positions.
all this is coming out I

Where
shall

have

leave

to

judgment.

We

to your good
have held the
in buying power

An

above

par

1951.

Interest

help stabilize money rates.
A
lowering of income tax rates ap¬
plicable to interest as well as to

savings
from

1

rates

institutions
to

March
offered

have

of
by

risen

Many of these rates, by historic
standards,

are

still low.' The mon¬

extension

forms

of

of

that

record

income

likewise

helpful.
But
firmly to the view that

going

the Federal Reserve
by cushioning periods of pressure

over

movement,

steady

consumers' goods since 1953.

over

other

3%.

a

year

the

at

National

Press

magazine

in

It is hard

Government.

Club

at

noon

They

advertising when
to get to

of

because

aircraft

men.
seems

in the number of

also to be interested

on as

"consultants" at from $25,000 to $65,000
■,

a

'

.

.

train there is no doubt, but
is that such an important
-industry, one so vital to our present prosperity, is dependent upon
government spending, the making of planes and missiles and de¬
what impresses this correspondent more

stroying them and making more and more of the improved same.
"You can't escape the impression that it. would be an awful
-

thing for Russia to pull the rug from under us by really calling
off the cold war, by literally burning its arms and permitting dele¬
gations of clergymen to come over and see that they had nothing
to conceal.
'
'j*
/ '
.,
,

the least, it might take the spats off the Air Force
and bugle corps and for the life of me I have never seen the
of a drum and bugle corps, in war or in peace.
Drum and

To
drum

need

bugle

say

thing I have against the American Legion, as

corps are one

'

public spirited as they are.

over

to

command

hold

money

better

be

is

rates

the next 20 years than it did
the last 20.
'
1 *

Joins Illinois Co.

Exchange

(Special to The Financial Chronicle)

Weekly Firm Changes
The New York Stock Exchange
has announced the following firm

on

vis

is

connected

now

Company,

with

the

Incorporated,

,

H.

D.

the

v

CHICAGO, 111.—James D. JarIllinois

changes:

Coddington,
York

New

Feb. 29 will

Stock

member of
Exchange,

retire from part¬

231

South
of

bers
west

Salle

La

the

Stock

New

Street,

York

mem¬

Mid¬

and

Exchanges.

nership in Hooker & Fay.
On

Feb.

29,

member of the
tire

Ronald M. Belin,
Exchange, will re¬

from

in

partnership
Alsberg & Co.

mann,

can

would

I

New York Stock

to

ing Treasury bonds at premiums
as

dollars

ing.

dollar

late

millions of

bar

allow

lower, though the authorities re¬
sisted the movement by support¬
as

themselves big salaries and bonuses and

pay

year.

inflation.

disillusioned

They

industry has taken

We

indulgent
at the

values at any time to be

riding high.

The committee

even

government

to concern the House 6ub-committee is

retired generals and admirals, all relatively young men, whom the

But gov¬

price

seems

public relations

a

people dismiss the

more

Onward and upward with the sciences.

charge the government for all sorts of free entertainment.

the

I
would

we

is

They are in business be¬
They built B-29's and B-36's and now they

war.

their sole customer is the U. S.

-

More and

idea

values.

assumed

of the cold

spend

i

the past and

in

in the future.

terest rates

fashion.

the

yields

of interest rates

scales

risen

always
more

cost

have

the quest for a higher return. The

day charges 7%.
have

equity

not.

That the industry is quite a gravy

generously.
until we

them

or

The matter that

share¬

reward

merry

have had
have

maintaining

most

is

to

"air-minded"

are

that their officials, those of the companies so far investigated, are

capacity,

new

on

able

deflation

Every nation that made a fetish
of

return
been

the question of where they stand

on

industry, whether they

building B-52's.

are

stock is¬

over

tremendous political influence; men are elected

public office

government is their sole customer.

cause

adding to demands for bor¬

sues,

a

committee do practically all of their business with the government;

The in¬

•

taxable

It has

is spending on aircraft
missiles and the like, there is always
formidable demand in Congress that more billions be spent.
The aircraft builders that have already been heard by the sub¬

a

value.

from

It employs hundreds of

and its components of guided

industry, the deductibility of

interest

largest in this country.

In spite of the billions the government

while
the
maintained, may in¬

well

third

and defeated for

mortgages,

the

home,

industry and its revelations are an interesting com¬
this country's economy. The industry, I believe, is

on

annually.

the

suggest

aircraft

about the

the burden of servic¬

ease

natty white scats. After they had done

wore

thousands of workers; its spending runs into the billions of dollars

deductible

are

income.

taxable

from

ing

taxes

they

visiting foreign dignitary, they relaxed and
walked off in loose single file to waiting busses.
It so happens that a House sub-committee has been investigating

principle rowed money. Corporations bor¬
that government policies of in¬ rowing susbtantially for new plant
flating the currency to keep in¬ and equipment, and realizing a
I

blue

their capers before the

market.

all the bigger.

are

terest

more.' The troops in' full dress attire arrive
busses and then are scattered around at 20 feet

at the center of

When building costs rise those de¬
mands

Bargeroa

•-•V'i/.v,

sergeants, but spread

invest¬

mortgage

Carlisle

Some of it may be due, too,

They go through all the usual panoply of "Present Arms,"
"Parade Rest," "Attention," to the blare, of
gusty lieutenants-and.

people. When peo¬
homes they add to de¬

buy

mands

This is

out.

any

upon the scene in

ment for many

ple

turn

apart.

illustration.

an

bonanza

a

military

our.

increasing visits of celebrities. But no longer, is there the
pageantry of marching infantrymen and the rolling of tanks. No¬

equity in a well-located home
also

personality.

to the

our

has

at

brought about.

mentary

An

-

because of the changes which modern warfare

Moreover, in a world where
prices rise, and rarely fall, sav¬
ings favor equities. The growth
in mutual funds is

given

arriving celebrities must be dis¬

our

appointed
has

the

in

be

employes

a

to cheer this or that

absence of this tendency.

etary authorities have resisted the
by

would

it

form

to

the

let all the workers of the financial center off

It is well known

favored bond issues

Currency Inflation Principle

a

few weeks

natu¬

authorities

monetary

rally

was

the

Fiscal

examination.

fresh

need

what

off

that

out

goes

-

cheering crowd and New
Yorkers can get an impression of what a wel¬
coming this is when they consider what it is to

affected by changes in capital
of equities they own, as
well' as by appropriations from

below

•;

time

are

current income.

view these ideas of a
drift in money rates

my

declining

war

it

But

as
•

■

values

Suspension Motives

■

*

;

,

Invariably the word
thousands of government

People's savings

quality.

poor

Vtr.r.
savings are

total

for

<

giving, or attempting to give, him the old world

Let me spell that

bit.

a.

to the other

away money

pageantry of reception.

have

we-

—

-months

running up to August,
1955, these bonds receded as low

world

living. in.

Statistics
of

natural outgrowth

a

kind' of

the

giving

ington now seems to be spending a lot Of its
time receiving this and that foreign crown and

to

than

borrow

though to settle all doubts that savings in real estate or stock
about the trend of rates another
equities have done better on the
force
went
to
work
beginning, whole than
savings put in bonds.
with the departure of the United
In a world where government
Kingdom from the gold standard
and
employers offer such large
in September of 1931.
This was
supports of "social security" the
the use of the powers of central
impulse to save is weakened even
banks — free from the restraints
though resources for saving may
of the gold standard—to increase
be larger. We have the growth in
supplies of credit and artificially
consumer
credit
which
mort¬
to manage and
depress interest
gages future income—as one index
rates. As recently as 10 years ago
of a tendency among people to
some
theorists of the Keynesian
spend first and save afterwards
school of thought were still spec¬
instead of the other way around.
ulating about the possibilities that
This
adds
to
demand
for bor¬
interest rates might eventually be
rowed money and reduces supply
driven down to zero.

con¬

to industrial and public

cern

at

cost

The

money.

drift is of

on

of

conceptions of the basic

some

forces

back

This is

to

Just as in the days

European states .("global" leaders or at least J;
some kind of leaders they were called) Wash¬

competition for savings deposits,"
which suggests that customers are
anxious

forever

were

rate.

more

the cere¬

fascinated spectator at

a

was

district of Columbia building (the Washington City

before World War II when France and Britain were the ones who

As

P™*

pressures
come

act

will

serve

correspondent

Hall) for the arrival of the President of Italy,

Keynesian theory people

supposed to save regardless of
What we see is an active

are

of the News

By CARLISLE BARGERON
Your

Keynesian Theory

countries..

Gold

Ahead

for

going on?

In the

comparatively well

other

From Washington

sav¬

monies at the

^

ordered

I*"**' ••

economy

market

the

larged

inflation to
C

'; v

and'en¬
bonds.
Nevertheless,
the
interest rate
worm has turned.
It is appropri¬
ate to ask the question, what has
ing

pursuit of currency

Governmental

describes

Johnson

Mr.

the

and

,

long-term bonds; The pension
fund movement fortuitously has

Bank of New York

Vice-President, The First National City

>

supply

of

JOHNSON*

By NORRIS O.

credit

the

on

Treasury by limiting its offerings

William A.

Dailey Now

With Eastman, Dillon

Kauf-

(Special to The Financial Chronicle)

Joseph M. Fitzgerald will retire
from
partnership
in
John
J.

CHICAGO,
111. — William
A.
Dailey has become associated with

Co. March

Eastman, Dillon & Co., 135 South

O'Brien

&

1.

Salle

La

W. B. Zener Co. Formed
William B. Zener & Co., Inc. has
been

formed

with

offices

at

engage

in

a

securities business.

and

40

Exchange Place, New York City to

Street.

Mr.

Dailey

was

formerly with White, Weld & Co.

of

prior thereto was

Harold

Paul.

E.

Wood

&

an

Co.

officer
of

St.

Volume 183

Number 5512

..

The Commercial and Financial Chronicle

.

(106J)

Vi

OntlfMfclr

IQRfi

j VttUyyKT>193v

1

'
„

By EZRA SOLOMON*

,

°"_°ith® £Lse

in these expenditures in 1956 and
probably into
the subsequent
years.
:

In

School of Business, University of Chicago

nrrW

the

of $400 billion.

a

IvImc*
lvine

1956 Gross National Product

under"

pvnnn^t,,^;
j-x

fhpt!<n

u

^
11

education, the perioa 1950-1965
euuyawm,
me period
iyoo-iaoo
against declines elsewhere, will witness, the following, pheevaluate .this nomena. Between 1950 and 1965
necessary to evai

is
ls

the
me

is
is

source
source

strategic

buloui-

are

these

business

''

capac¬

i

3Vj2% 1956 real rate of increase with
changes in the economy's composition: (1) decline in

ity operation,

3

a

or

accumulation

inventory

and

short-term

n n

group

dren

(7) housing dollar volume to decline from
to $15%
billion, Itnd (8) rafe of disposable Income spent on consumer
durable gools to equal 1955, aft Increase of $2V«j billieii in
spite ofanto decline. Unlike 1929, increasing demand is found
10 exceed Supply, necessitating increased plant and equipment,
and labor productivity.

1 >

r

little

doubt

whirh
wmcn

ln
in

was

there

the

about

direction

national

gross

was

nmHiirt

national

proauct

1955. There

going to move in

however,

was,

considerable

strength

and

duration

of

the

that

the

we

to

Today,

wili

vehicles

mm-

tnis

the

be

sup-

first

be

time

be

as

experie+nced has+ nf°J
downturn
total

a

A

in

will

word

new

found

phenomenon

experienced.

to

have
the

describe

and

will

we

prob-

ably be talking about the "interProf. Ezra Solomon

we

mission"

of

now

on

Having taken

^utheroad. In 10
60,mIllll°"
the

1955, long was particularly
before the shortsituation

term

look

at

chad«? thi«

enlar^mont will

onH

nniitipni

the

-without

boom

However,

this

be

cherished plateau. Or it
a

breather before

it.

knowing

could

that

might be

resumption of

a

the boom."
It

that

cannot

we

ex-

pect the level of activity to keep

increasing

the

at

rate

have

we

experienced in the last five qUarters. Between the third quarter
of 1954 and

1955,
by

the fourth quarter of

national product rose
$38 billion, equal td^fc

over

.we^remove the
higher

shghtly

effects of
This

prices.

is

about three times our "normal rate

Since
close to

growth.

are

we

now

capacity, we
hope at best to go back to a
or 3%% rate of real growth.

operating
can

3

there

Now

factors

several

are

which suggest that demand in 1956
will not be strong enough to sup-

port

3

a

or

the

above

3V2% growth of GNP
billion

$398

rate

re-

corded in the last quarter of 1955.
Of

the

billion

$38

third

the

since

increased

rise

in

is

the

GNP

of

quarter

one-half

nearly

1954,
of

result

expenditures based on
accumulation

business
and

inventory
increases

on

consumer

in

credit.

short-term

For

reasons

which I will discuss later, demand
from

these

decline
In

requests

is

sources

their

from

recent

order-simply to

current

level

to

levels,

maintain the

GNP,

other

from

demand
have to

of

likely

increased
will

sectors

replace the evaporation of

for

more

uation of the long-run 1V2% per
annum increase in per capita liv-

ImiimLnt

and

inS standards will mean that the

order-f

m

26% increase in population will
bring about a 50% increase in de-

in

the

orders r^ched

first half of

1951

s^nce^^f^igs^beSm1 to^ise^n

ments reached a Peak in

since early 1953 began to rise in
oany 1955,■ and Ito nse is exP

d{

fPcf

Inn

half

of

lg53

of cSS pZfc m!™
yey oilap ta^1 Expenditure Plans

been

can

the

ariiust

do
8

13% rise in 1956

Mahufacturhvg companies plan to
Manutacturing
increase their capital spending by

ever

since

New

meets

de_

into

1957.

(4)

In

One

50% increase in demand.

a

way

source
of increased
supply is through increases in
productivity per manhour. This

the important

past, survey data have almost always
underestimated the actual

sizc of Plant and equipment out- in turn means a tremendous inloxrc
^
in thp mianti+v and nualitv
crease in the quantity and quality

^a^s*

of

Even more significant, supportagainst much smaller in- ing evidence is to be found by
creases in capital expenditures in examining
the
basic
determi-

equipment

ptb

,

f
bn

^

h

'

f

•

per

worker,

foi+nrv and
tb
nffLP qnd

This i«!

thG

utilities

Pfll,inmpnt

agriculture.
are

Also equipment. Large changes in the
com-'birth rate over the last 50 years

nbint

"

an

circumstances

no

offer

to

significantly

to

be construed

as

an

presented.

This

q»lie

offering of these securities for sale,

or as

120,000 Shares

The Trane

harder to forecast. At

budget is

Common Stock

the time that the budget message

was

being prepared,

the

midst

of

begun to put
sures

on

jn this

tion

a

we

boom

were

that

definite

very

industrial

in
(Par Value $2 Per Share)

had
pres-

prices. It

was

setting that the administrathat

proposed

pected in fiscal
debt

Company

and tax side of the

revenue

surpluses

1957

repayment

be used

rather

than

ex-

Price $49-50 per

for

Share

for

tax relief. Since December it has
become
of
is

evident

that

has

inflation

the

threat

subsided.

There

longer a real scramble for
industrial materials or for labor
no

over-time,
tivity
in

and

production

the

Copies of the Prospectus may be obtained from
in which the

ac-

automotive

and

undersigned

may

the undersigned only in those States

legally offer these securities in compliance

with the securities laws of the respective States.

.]

residential construction industries

has

declined.

In

setting

the
ex-

are

pected

cash

used

some

in

ing tax
for

this

much higher that

chances

surpluses
measure

rat^s. During

some

gressional

strange

will

for

reduc-

leap

a

year,

Con-

reason,

action

Smith, Barney & Co.

be

Blyth & Co., Inc.

dividual

cut

by

tax

liabilities

around

$2

Kidder, Peabody & Co.

Lehman Brothers

is

especially
difficult to predict, and one can
only guess. My guess is that inwill

billion,

Merrill

Lynch, Pierce, Fenner & Beane

be

begin-

Purchases. The level of state and

Dean Witter & Co.

ning July 1.

these increases will

White, Weld & Co.

sources.

State
u

be

/

!?

come

particularly from increased

—TZ—
th.

•

forthcoming, and that they will

..

.

^

0

,

,

,

local

111.,

Feb.

is,

1956.




Local

government

Government

purchases

also

Per ann"m-

been

Revenues have

increasing.

Since

Clark, Dodge & Co.

of

goods and services has been rising
steadily at a rate of $2 or $2J/2

En«cuii/"Program'ch/b°orchkir»! biuio?

Chicago,

and

the

February 24, 1956

Dominick & Dominick

the

in

snendins

or as a

that

means

the slight rise in Federal spendJpg Will continue for some time,
The increase in demand from this
source is expected to be about
$1 billion in calendar 1956.

the

factor

boom

nresent

p

solicitation of an offer to buy, any of such securities.
The offer is made only by means of the Prospectus.
\

buy,

in

not

*

Continued on page 00

levels already have caused distortions within our

This is under

v.nd

p

on

tho nrinrinal

other sectors, for example public nants of demand for plant and finaPJivin«
and

of
in-

first crease in man hours s0 that &

orders

anced

when the plans for 1956

lot

a

or

is through a greater parT
1954 ticipation by women and by the
with a more rapid mcrease since less active age groups in the lalate 1955 Shipments wm rise in bor force. Another way is through
1956 and this rise will certainly overtime.
But by far the most
clining

W11'^continue
ve^
conducted late last year
a

have

society

Now

tbines'to

began to increase again in

veV

shows plans for

and

mand. ;

a

and

\vfir,

1 q«u

1

appropriations

new

these two declining

demand from

instead of

aiso higher in the new budget

just

gross

rate ol about 9% per annum even

of

Curement. Even

are

clear

is

rjse) principally because of inoutlays for /defense pro-

creased

wU1
9%

0r

nnt

SW mffi

pared witil

down. These doubts are
These
expenditures
declined
expressed very well in a recent rapjdiy after they reached a
peak
paragraph
m
Business
Week in the spring of 1953
During 1955
(January 14, p. 17).
It may be they were stable at around $46
that we have passed the peak of biui0n# jn
i956; they are expected
cr

8

Hn

nnrprtsintipc

economy today. Demand from this

be

up

onl

un xne aemana siae, a conim

the President's illness was announced,

Kv;™

30%. However, this has to be bal-

gross

close to

very

b

(2) The more recent year- *.13%^--.V;C>
•
only huge end survey was taken after the
demand side
a contin-

national production the broad picture, let us turn to a
a $400 billion rate. n}ore
careful evaluation of
F.ew people expect this level to changes we can expect in the inchange by very much in 1956. di^dual segments of demand in
But there is definite disagreement 1956>,
about whether this change will
Federal Government Purchases,
with

available

from the active
^ise

in*

potential

•

can prevent

romnanfp^nlan^tn

quick

a

that the

meah

^ about 80
expenditures now

1956.

the

opposite situation. We enter 1956

will

man-hours

fairly frantic boom such

a

activity

just

have

it

ended

de-

d

n

a

.&tS.wSS'J5S;:

DGak

W<!^Ve
with

tremendous

have

will

other

^les is also rising rapidly. Today ness capital spending for 1956 was

place, but the total will be

that

the

of

tor

level

the

we

correct

underesti¬

levels

not

fertility rates, the total popula£«» will^increase from 151 mil-

.

.

St^at analysis $400 bilhon.
If this ar°"nd
turns out to

even

optimists

mated

.4,<*

thi<

-fnr

nnt

it

this

would, even now, be in £ *arg(emeni^will bring.
the
initial phase of a
business;
Business Expenditures for Con- ward r£v£inn
downturn. As it is, we are likely struction and Equipment. The de-:
to experience little change in the mand
for / business construction faiAvPionff lae
over-all level of activity in 1956. and
equipment is the greatest
Machine tool
A number of readjustments will single factor of strength in the

port,

take

move¬

ment. It tiii-ns
out

it

were

at

double.. All

v

Wwp

exPe"enced in late 1955?- If so, 13%. During the same period, aslikely to suniing a continuation-of recent

Al1" they'are vulnerable and
Sre TnTo be amended downward.
£

™

*1^

doubt about

the

mpnt

v

Hon to 190 million—an increase
term factor.s do play a part, the of about 26%. ■ .
■
dOfiiarfds P^P^ts
for increased capital
The potential discrepancy bethat teen-agers make on
society expenditures appear to be based tweeli supply power arid deihafid
—like
recreation
facilities
arid t)n
more permanent considers- power becomes even wider if we
police' facilities^-will also double GoftS. Let US look at some of this take two other relevant factors
6r-mOTe than double. ^
^ v
evidence.
:
1
into account. On the supply; side,

ment

purchases
of
plant, equipment
and tools by business and government.

7? i

to

fo?

'Jevel of business expenditures for construction and equipment;

At this time last year,

Ten

18

high school, and the demand
'
All the evidence indicates that
classrooms, teachers and eouin- this is not the case. While short-

l"flaxes by about $2 billion; (6) slgOifkatitly sustained high
•

have

we

consumer

credit; (2) over-all sales level to remain the same; (3) Federal, State and local purchase to rise moderately; (4) reducof inflatioftafy threat; (5) Federal cash surplus to reduce

r

m

notentf^

also1 of-

icy and the trend toward college

Because increased demand from
this
U11S

result

a

other factors

:tor carefully. Do t!
af nntn^Sr,
^?S sect0r carefully. Do the very op- the highly active age groups in
aistic
Today there -are? ahnnt nine mil- timistic -plans repor
uS"
Plans reported in the society—those from 20-64 years of
ioaay mere
about
fromFthe rosy glow age, will increase from 87.3 million tppn-afyprc
u"% survey result from th
age groun
In thb
rw!?itsc^°° of record profits and rising sales lion to 99 million. This is about

In not anticipating the extraordinary 1955

growth rate, Professor Solomon expects, with continued

'

<rk+

As
and

lik£ rkir*m*nt%*>u
?ther factors like retirement pol-

'

-

: ;

only to look

"

•

tn

dramatic.;

as

,

Associate Professor of Finance

Finance Professor envisions

J>emg expanded.in ; the.last qtiar- population structure.
S a contmua- ter "of • I955;^erili(rtgds63 'are not of these distortions,

^

tion

.-

13

Hornblower & Weeks

The
Commercial and Financial Chronicle

-»

.

.

Thursday, March 1, 1956

.

'

(1062)

u

1

cal

Standard Opposed by

Return to Gold Coin

New York Chamber of Commerce Committee

L
t
r

f
*

I

check

gold standard would

inflationary

pressures

shift

would

irom

Federal Reserve

jury

authorities,

hands of
and

mass

The
Committee is in
accord
with the basic objectives of those

produc¬
i

return to the pre-1933

a

of

Dean,

Collins,

Rowland

G.

Co.;

Administra-

Business

tion, New York University: Perry
Hall, Managing Partner, Morgan

.Stanley & Co.; Devereux C. Jo-

nephs, Chairman of the Board, New
.York Life Insurance Co.; and Roy
L. Reierson, Vice-President, BankTrust Co.

ers

The

text! of

report follows:
The Committee

resolution

on Oct. 6,
Edward J. W.
cprtinn
nf
Proffitt, the pertinent section of

by

1955,

which

proposed

Colonel

PrnfVut

nprtinont

fhp

is

that a return to a fully convertible gold coin standard would
over,

increase the proscontinued stability in

^vel.

standard, the United
States experienced wide fluctuatl0ns in the leyel.s of commodity
cou?

P^ces

uncertainties which

and
be

unwise

it

is

difficult

risks.
to

incur.

to

that

of

benefits

sure.

One of the risks
to

the

risks in

prospective

clear and

are

unwise

seems

unknown

assume

these

evaluate

to

However, it

absence

it would

Admittedly,

that

A gold coin standard would

,■

not in itself operate

"Resolved, that the Cham-

-

ber of Commerce of the State

T of New
its

York

Standard

.

.

a

and

as a

%

of

.

.

policy

with

be

manent Gold

f

a

the

of

Reserve

dollar

the

subject

are

our

license

to

of the Treasury and cur¬
rently its
Undersecretary,
and
William McC/ Martin, Chaixman
tary

against

possible

Federal
their

raids

could

take

out

gold

•

hoarding of gold coin should
large
be

standard.

of

source

the

as¬

coin

ithat
,

the

1933

to

prior

present

similar

Committee

the

price,

Cham-

itself

unable

Committee

to

finds

recommend

that

the Chamber adopt the resolution

proposed
nel

Oct. 6, 1955 by Colo-

on

standard,
be made

the

of

those
more

arrangement that is gen-

an

erally described
-

international

as an

gold bullion standard.

tary
In

unit

(the

terms

buys

of

and

The

dollar)

gold;

sells

mone-

is defined

ttie

gold

at

Treasury
a
fixed

iprice in transactions with foreign
central
or

banks

and

governments

the settlement of international

balances and for other legitimate
purpcses; and the Federal Reserve

Hystem
rnaintain

is
a

required

by

law

to

in

tificates

gold ceragainst Federal Reserve

.Notes

circulation

A
rein

in

return

reserve

to

standard

circulaticn

the

of

and

deposits.
pre-1933 gold

would

involve

the

gold coins, unlim:';ed ccinage, and the convertibili:y into
gold coin of currency,




$16,716,408

were

and

the

Cur¬

of

be

prevalent.

this

The

objective

exercise

of

funded

made up entirely of
liabilities in the amount

were

The physical assets

$2,984,160.

sheet

in the balance

carried

tremendously depreciated
does not favor the adoption
value; for example, the new office
building

that

Oct.

1955,

28,

dedicated on
carried on the

was

is

of $1,642,-

balance sheet at a cost

The

259.

company

offered

was

GERALD F. BEAL

The

above upkeep

PERRY E. HALL

free

DEVEREUX C. JOSEPHS

; ?

$3,000,000 for the building with a
long-term "lease back" provision.

G. ROWLAND COLLINS

little

Safeguarding the dollar against
decline in value is a complex
arduous
undertaking, espe¬
cially in an /environment in which
the "full employment" philosophy
so

$3,661,405 of
^current assets.

(excluding

Liabilities

are

30,

—

which represented

of

June

American's total assets

1955 Anglo

current

by the Chamber of the resolution

*

and

gold

company

ROY

income from

Committee

the

and

February 6,1956

re¬

requires

prudence

Finance and

on

Currency

attainment
New

York, N. Y.

$250,000
refincrv

the

carried

is

rents, over and

and taxes plus rent
to Anglo American, rets the

wise

REIERSON

L.

a year. Like¬
and equipment

The re¬

$1,215,754.

at

placement value is estimated to be
over $5,000,000 and the plant and
equipment could probably be sold
for better than $5,000,000. Owner¬

Continued

problems

from

page

domestic

2

The Security I Like Best

and

could

be

shifted for the first nine months of

into

the

hands

of

people

mass

psy-

The

same

principal
argument
by the sponsor of the

ad¬

as

agrees

that

large

chewan

subsidiaries

as

of

Freehold

producing

The

business.
average

cost

of

for

limiting

Federal

pending

hold

its

half

Gridoil need only to
an acre or

for

cost

one-tenth

delay

rentals.

behalf

of

Gridoil

recently
drilled 54 wells, 49 of which were

-

The

producers.
calls

for

tional

it

the

wells

known
cost

program

for 1956

drilling of 68 addi¬
in

what

is

generally
as proven territory.
Where
about $1.30 to produce a

barrel cf oil in the U. S. and $1.20

an

well is estimated at from
on

to

10 cents
usual

in

throughout Canada, Gridof discovery is a phe¬
nomenally low 30 cents per barrel.
Selling at $9% a share and

average

does not believe that a return to
$100,000 minimum to $250,000 de¬
the gold coin standard is an effecdevice

order

acres

the

Williston

Anglo American Exploration Ltd.

expensive

drilling

the

In

pay

Ltd.

Leases
an

as

million

Petroleum,

Gridoil

to

Basin.

Humble Oil, Inter- t the

The search for oil is

Manitoba within

and

referred

area

Standard Oil of N. J. did

national

Treasury deficits contribute to inflationary pressures. However, it

throughout the prairies of Saskat¬

relationship with is subsidi¬

aries

and still does with such

chology.

Gridoil has 522,000 acres of
"freehold" leases checkerboarded

1955.

oil's

the depth to which it
to bring in the

had

have

well.

Anglo American enjoys the

from the monetary authori-

away

ties

control

Scotia oil and gas
sheet
$1.00. The company has had
many opportunities to dispose of
this acreage at substantial profits
either for cash or royalties. The
260 service stations owned in fee
of Nova

at

difficult be¬

impact of hoarding

-dishoarding,

credit

tive

Proffitt.

The current monetary system of
.the United States is tied to gold
under

Finance

1

On

Sheet:

Balance

take debt)

position today,
on

American.
v

ship

Committee

present

reason

could

Anglo

1956.

is also carried in its balance

Finance

constituted.
The

every

This acreage

highly profitable to

during
prove

a

and

resolutions

by
on

coin

Exploration
and
development
work will probably be undertaken

J. LUTHER CLEVELAND

would

Creole Pete,
and vanced
resoThe
attractive
speculative
Currency in 1948 and again in lution of Oct. 6, 1955 is that a etc.
(1952.
In each of these instances return to the
gold coin standard controlling interest of Anglo
American Exploration Ltd. lies in
an adverse
report was presented is necessary to impose restraint
its
ownership
of
1,309,435
or
to the Chamber by its Committee
upon Treasury expenditures and
on Finance and
Currency as then, thus to help check inflation. The 16.62% of the outstanding shares
der's

pro¬

gold

emi¬

geologist spoke
enthusiastically of the possibil¬
ities of oil and gas in abundance.
Canadian

nent

not be

under

swayed by rumor and

considered

is

that
.

geological examination

a

property made by an

of the

appro¬

cause

of gold of $35 an ounce should be

Somewhat

the

date,

to

a

in

maintained.

.were

Exchange, Anglo
American's ownership of 2,514,893
Stock

can

an

could

excepc

monetary

-

the

our

standard

Selling at

years.

listed on the Ameri¬

2% per share,

.at

rency

foreign, upon our monetary re¬
serves, and hence upon the money successful in increasing its volume
v
Colonel Proffitt favors a prompt market. Under a gold coin stand- of -refined
products
over
ithe
{return to the gold coin standard
ard, some significant measure of average industry increase by 2%
it existed

same

Committee

the United States."

<as

bill in

proposed
on
Oct. >6,
1955
by
monetary author¬ •Colonel Edward J. W. Proffitt.
ities. If domestic hoarding should
Respectfully submitted,
prove
to be insignificant in its
HENRY P. DAVISON, Chairman
proportions, a return to the gold

difficulty to

of

coin

per-

Standard

restore'
There

.

a

stated

For the preceding reasons,

y

that, too,
significant

proportion,

a

"

to

Senate

States

to

System,

for rto believe 'that they would

-

and without the ap¬
proval of the monetary authorities.
Moreover, if the domestic

wculd

opposition

posed

any purpose

sume

Reserve

United

our

dollars

of Governors of the

of the Board

by

gold reserves. ' Under, the
gold coin standard, any holder, of
on

then Deputy to the Secre¬

gess,

This fact provides

Treasury.

protection

The problems

standard.

Under

securities.

the

over

come

areas

use •

the

is

ever,

is

a

increased

throughout the
of the Prov¬
inces, within what is generally
recognized as the more northerly
parts of the Williston Basin. Many
parcels now under exploration
and
development
could
afford
Anglo American's substantial in¬
checkerboarded

sedimentary

made easier. In fact,

promptness, looking to-

L;

by

role

;

1,439,000 acres in the Province of
Manitoba
and Saskatchewan

priate credit policy would

taken

ward the restoration of

policy

credit

in the

the

would

in the determination of

difficult,

more

should

measures

Nor

to such

delay in the declaration

the

automatically

situation

faced by the monetary authorities

.

definite policy will make

a

this

are

possibility of with¬ v It is a matter of significant per¬
drawals of gold by foreign holders tinence that as
recently as March
of dollars, of dollarj balances, or
*29, 1954, both W. Randolph Bur¬

authorities be reduced by a return

the belief that,

expresses

|

■

satis¬

factory monetary system

change

future.

Gold

most

the

is

reaffirms

.

that

conviction

to

stability

price

growth with a reasonably stable
price level.

return

a

gold coin standard would inl-

a

of practical importance.

periods

during

even

peace.

follows:

as

The Committee believes, more-

Finance and

on

Currency has carefully considered
a

years

pects for a

f

and

activity,

approximately

troleum and gas in

of shares represents a ^market value
in the of $6,601,594.
granting of wage increases.
If
Anglo American also owns all
these objectives can be attained, the
outstanding - stock of -Nova
the present monetary system is Scotia Oil & Gas Co. Ltd.
This
satisfactory. Should excesses de¬ company has exclusive i licenses
to explore for oil and gas on 1,velop in these important areas,
however, a gold coin standard 105,000 acres in the Province of
While no develop¬
would in itself be of little help Nova Scotia.
in
achieving
sound
economic ment work has been undertaken

coin standard would involve risks

vite

Committee's not necessarily

the

high

wage

prevent excesses in the
credit, and ^ by restraint

gold

of

School

*

adequately

an

structure.

tax

present monetary system,, foreign
central
banks
and
governments
can
obtain
gold for legitimate,
purposes. Such withdrawals, how¬

Corp.; J. Luther Cleveland, Chairman of the Board, Guaranty Trust

economic

of

by

The Committee believes further

has been highly satisfactory. A substantial stability of the
aggregate price level has prevailed. The United States dollar
has consistently maintained its
preeminent position among t ie
currencies of the world. The evidence of recent years clearly inaicates that the value of the dollar can be maintained without
changing our present monetary
arrangements.

Inc.; Gerald F. Real, Presi-

times

in

prudent Treasury housekeep¬
ing, by the effective use of; a
flexible credit policy designed to

the record during the past three

dent, J. Henry Schroder Banking

■

economy

in a

& Co.,

of

by

coin standard

gold

help to achieve

restraint

levels

a

signed by Henry
Davison, President, J. P. Morgan

P.

-

the

to

that

Committee

credit

of

policies

appropriate

apply

tial

that

people swayed by rumor
Nevertheless, under the interpsychology."
national
gold bullion standard,

These views were offered

j

the

of

tive

the the dollar.

into

/'and

unanimous report

S.

increases that run in
excess
of gains in productivity.
The chances of achieving substan¬

of

"significant nored. Obviously, continuing vigaway ilance is required to prevent eroand Treas- sion in the purchasing power of

a

sures

Treasury deficits, by a failure to

control"

credit

of

measure

important areas:

maintain

United who seek to provide safeguards
against a decline in the purchasSuch
a
move,
cautioned the ing power of the dollar. The unNew York Chamber of Commerce derlying inflationary potential in
Committee on Finance and Cur- the economy should not be lg-

rency,

to

efficiency in Federal spend¬
ing and that it will not help to

upset

might

time

some

three

in

policy, credit policy, and
policy. Upward price pres¬
will be generated by large

and

present
States monetary stability.
and

for

probable.

seems

return

yiJt,

not

levels

will not

top fi- and indirectly but in practice,
nancial leaders said Feb. 28 that bank deposits as well,
return to the

wage

high

likely

this effort.

view

nation's

the

of

Seven

fiscal

seems

in

This prob¬
ability may pose continuing prob¬
lems of budget balancing-in the
years ahead.
However, it is the

credit policies.

f*

Fed¬

come

Financial leaders base views opposing gold standard return on:
(1) past three years satisfactory stable price level; (2) eminent international dollar position; (3) belief gold standard
cannot achieve stable prices, limit Federal spending, prevent
money market impact of hoarding and dis-hoarding, and (4)
better results accomplished with prudent fiscal and flexible

^

bring

spending will need to remain

eral
at

straint

to
That

year

success

■

cost

increase
be shown on

tremendous

a

in value that cannot

the balance sheet.

brev¬

However, for the sake of

ity let us accept the balance sheet
as is in order to arrive at a depre¬
ciated value for the Anglo Ameri¬
can common

from

inate

stocks We will elim¬

the

sheet

balance

asset side
$2,343,498

of the
repre¬

senting the figure at which Gridoil and Canadian Williston is car¬
ried on the balance sheet.
We
then arrive at total assets of $14,-

after deducting cur¬
we arrive at total
net assets of $11,388,750. Now to
this figure we must add the mar¬
ket value of Gridoil ($12,767,956)
and Canadian Williston ($6,601,594). We then arrive at total assets
and

373,910
rent

of

liabilities

$30,758,300. It's now very easy

to prove that in addition to ro¬
spending. Nor does it believe that
on
the
well.
A drilling rig costs in the listed
^American Stock mance and unusual growth possi¬
a S°ld coin standard would prove
neighborhood of $300,000.
Also, Exchange, Anglo American's bilities there is a great amount of
to be effective in forestalling tax
let us not forget the thousands of ownership
cf
1,309,534
Gridoil equity, both physical and collat¬
reductions
that
could , lead
to
feet
of
pipe,
steel
casing and shares reoresents a market value eral behind every share of Anglo
budget deficits. Under a gold coin
At $9% a share American Exploration Ltd. Now to
drillings bits, all of which are a of $12,767,956.
standard
the power over the must in
drilling, and are costly. there is no water in the Gridoil arrive at the value of Anglo we
public purse, in terms of Federal
Anglo American emoloys engi¬ stock, and that's not a pun. There will pursue one step further. We
spending and of taxation, would neers and other skilled techni¬ is an estimated
60,000,000 barrels will now deduct the entire funded
remain where it is today, that is, cians, not to mention top grade -> of oil in the ground and due to debt made up of $2,000,000 in 1st
with the* Congress and the Ad- geologists and geophysicists. They the- favorable leasehold situation Mortgage 5% Bonds due 12/31/64
ministration,
have the necessary equipment ard.
-It will cost less to produce than and $4,200,000 5%% Convertible

must

be

drilled

■

Obviously, restraint
ernment

making

upon

gov-

spending and caution in
tax reductions are the

basic prerequisites to sound fiscal
and monetary

policy.

Notwithstanding the continuing
necessity for large outlays for
national

defense, the Administra-

ticn and the Congress have made

know-how.

The

income

and

ex¬

thereby controlled and
maintained within the family of

pense

are

American has
•an agreement with
Gridoil to do
all necessary drilling, excluding
farmouts, and recover its costs cf
drilling out of first production.
As
additional
compensation
it
companies.

Anglo

substantial progress toward a bal-

thereafter retains free 20%

anced budget and the current fis¬

oil produced

of all

during the life of the

any
-

similar situation in the U. S.
as high

Debentures

from

the

$30,758,300
arrive at a

or

Canada. This stock sold

of total assets and we

as

12% id 1955 and its low for the

figure of $24,558,300 net

8 1/16.
Anglo
American
Exploration
Ltd. also owns 2,514.893 or 63.43%
of the outstanding stock of Cana¬
same

year was

dian Williston Minerals Ltd. This
company

interest in

erab

undivided half
peroetui+y in a1! min-

has

rights

1,171,503

plicable

to

common

stock

This gives a
value

share.

of

now

(excluding coal), pe¬

outstanding.

depreciated net asset

approximately

We

have

an

to

assets ap¬
shares of

evaluate

the

made

$21.00 .a
no-

effort

company's

re-

Volume 183; .Number 5512

.

.

.

The Commercial and Financial Chronicle

(1063)

asset value of the stock would be

Of the

stock has sold at levels that

1,171,503 shares of Anglo

THE MARKET.,

American

Exploration Ltd. now
outstanding 750,000 is owned for
permanent

investment

American

Oils

ntd,

by

Anglo

By WALLACE

Personal

a

AND YOU

so the floating
supply is actually 421,503 shares.
Incidentally, the $4,200,000 Con¬

Debentures are convert¬
ible into capital stock at the rate
of 48 shares
per $1,000 debentures

The initial stock market
action to

the President's

cision

run

was

to

for

have

re¬

market

certainly

not

dilute the

the

common

present equity for
stock, and tne com¬
pany does not have any option or
warrants

tend

outstanding that would

to

increase

the

amount

of

stock.'

common

the

time

high pending on the de¬
cision, but, couldn't generate

enough sustained strength to
grade after the an¬

marked
full

improvement.
of

year

when the

The

first

was

operation

nouncement.
❖

Company showed

earn¬

ings, before depletion and depre¬
ciation, of $264,592 and for the
first

six

months

basis

same

of

1955

(but also

Apparently

his

1954

the

on

after

bond

had

been

well

candidacy

discounted

in

advance,

accounting for the
list's surge uphill some 20-odd
points in the last few weeks
period, but it

was

a

case

of

interest) of $282,902 or better than selling on the goods news for
double. Earnings for the latter six
the timely buyers
keeping the
months of 1955 should be substan¬

tially higher.
tinder

tne

list restrained.

in

aeffis of Mr. Samuel

A 520 D-J

Nickle, President, Anglo Ameri¬
can

Exploration Ltd. in two

has made
success

of

a

unsurpassed in the annals
Canadian
oil
industry.-

the

Anglo American, with its ;two
major subsidiaries, affords an un¬
usual

growth potential
mendous appreciation
in

Investment

years

record for growth and

with

tre¬

possibility

fully integrated oil operation.
It is the fastest
growing oil com¬
pany in Canada. It was
recently
a

estimated

tinued

Ceiling?

somewhat

nicians have seized

is

and

tion of

the

give

you

idea of the pace at which
Canada is moving.
For the individual who wants to
make an investment in Canada
and

can

eral

forego dividends for
Anglo American

sev¬

years,

ploration,

Ltd.

American

Stock

listed

Ex¬

on

the

Exchange

and
share

selling at or near $15.00 a
(which is 30% below even its net
asset
value)
is
an
outstanding
purchase for capital gains. In 1954
this stock sold

high
share. (Canadian).

Fred W.

as

as

$26.00

a

Vogeli With

Globe Securities
-Fred W. Vogell has become as¬
with
Globe
Securities

sociated

Corp.,

40

Exchange

Place,

aver¬

-

1955 ended

certainly is

Canadian crude oil will rise 70%

some

520

a

a

no

run-away

on

top side. In such circles

higher earnings anticipated important figure last year.
for this year.
Like the oil Each one-point decline in the
higher price
large operating ratio is equivalent
* did
before the big Companies with, their
depletion allowance, Filtrol to $10,000,000 more for op¬
correction set in on
heart

of

case

Combustion

*

predict

tention

was

centered

has

the .firm

Company of

not

coincide

"Chronicle."
as

expressed in this
necessarily at any
with those of tlvj
are presented
author only.]

They

those of the

individual situations where

was

concentrated

Copper,

New Peak for

on

the cop-

$7,230,000

-

some

(First installment of

>

a

proposed issue of $18,510,000)

Boston and Maine Railroad

t

10

Equipment Trust, Series 1

;

• -

/
4

To
*

mature

'^

t

,

(Philadelphia Plan)

annually $482,000
•

..

Equipment Trust Certificates

'

.r

.

<

.

4V2%

—

-.7

•

on

each March 1, 1957 to 1971,*'• inclusive
)' '

.

••••.■.'

•'

'

.

~

To be guaranteed unconditionally as to payment of principal and
by.Boston and Maine Railroad

;

like*.;

a

Steel Issue

dividends by endorsement

;

well

York

Stock

become
the

associated
mid-town

office, 41 East 42nd Street, New
York City. Mr. Bauman was for¬
merly *. with
Model,
Roland
&
Stone.




as

Bethlehem

Steel

as

a

to

Yield 4.25%

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and'other dealers as may lawfully ofer these securities in such State.

Issuance and sale
The
•

rule.

Priced

<

Steels weren't able to fare

quite

New

at

time

views
do

able to

Exchange, announced that John S.
with

[The
article

independent progress was
possible. A good share of this

habit, of

Auchincloss, Parker & Redoath,

Bauman

gas controversy re¬
originally, but the fatffc

on

were

With Auzhincloss Co.
the

volved

a

ucts

Chile

Colorado, Denver.

of

discussion

.*

recently make something of a
Trading Co.,
reaching new highs.

members

market letter

a

grouping because of its prod¬ But the line last year staged
for petroleum refining, something of a comeback,
In the absence of any clearwas
the subject of several more than doubling profit in
cut general market trend, at¬
discussions that gave it some addition to getting off this
*

stocks where, despite re¬
cent large increases, the
pressure for still highsr prices
was strong.
Anaconda, which

Globe Securities Corp. has just
a cirect wire service
to

'

is

manu¬

September. Magma has
facturing
distinction, too.*

installed

-

around

to

year.

York C-tvvMr. Vogell has
been with Stamrowe

Securities

rate

J

of the less active issues,

American

tax

20% less than that of

,

■:

holds its

operations as. well as its mid¬ still not reached the compara¬ panding actively in the petro¬
good gains, particularly dle east
operations which tively higher levels of some chemical field. Profits from
among the blue chips, are re¬ also' are
hardly to be'depre¬ of the blue chips. /This natu¬
this operation suffer no such
garded as having generally cated.
rally projects a rpad here
..
discounted in advance the ex¬
restraints as Federal control
and there to at least statistical
cellent earnings reports now
Added Starter With the
attention, including even of natural gas. It is obvious
Petroleums
appearing. Future progress to
Pennsylvania Railroad which that it will use its base mate¬
higher levels would depend
Filtrol, which is a sideline has had anything but a com¬ rials where the
greater profits
importantly on how well prof¬ issue that, also merits inclu¬ forting postwar history as
lie.
;
its are being maintained this
sion in any broad petroleum operating costs kept climbing.

points from its 1955-56 high, :
was
able to emerge prominently on leadership.^ Even
Magma, despite good action in ;
recent years that carried it
to an all-time high, was able
to continue its push back to v
its best recorded price; Some T

Inc.„,(

attack

New per

Vogell

a two-

made in this

the

had worked downhill

Frederick

this and

was

-

expecta¬

market

as

of point trim

.

only moderately above the

Vice-President of Merrill
Pet.) that the over-all market for
from its present level in
the next
five years.
This will

re¬

age even in the face of a fa¬
vorable answer. Such a level

(New York "Tribune,"
Sunday, Nov. 27, 1955, by Stuart peak reached as

K(ng,

on

lines such

are

face

the

quarter this year over the

a

gardless of the ultimate deci¬
sion, and a good body of tech¬
limit for the industrial

room
ratios

gain of at least piece and was able to stand that the stock was able to
its ground well marketwise.
take the veto of the bill in
It
has
been
expanding its stride to the extent it has
good 1955 results.
chemical activities. Earnings
*
*
*
heightened interest in this
have been on the upgrade as
situation. The cpmpany esti¬
Oils continue in high favor,
the new line grew to account
mated a profit gain of 25 %
with bright prospects for the
for a fourth of sales and ex¬
for 1955 and topped it of1
year
conceded rather genpansion is still underway to with an official
projection
erally.7 A favorite occupation
keep the growth trend going, that this
is '-detailing
year's results will be
the -value of
/v 7 /■;.
❖
*
❖
Standard Oil of Jersey's prin¬
even
better.
Offsetting the
Rails have been anything
cipal ^stockholdings to prove
chagrin oyer controlled natu¬
that the market has yet to but wonder workers market- ral gas prices is the fact tha's
reflect the value of its large wise but on basic factors have the company has been
ex¬

con¬

wary,

Con¬

is

a

President's

the

and

sentiment

attention

being
for ad¬ paid the operating ratios of

same

in

flying start.

a

v

make the

Earnings before depletion and
depreciation
have
shown
a

if the

to

year

siderable

erating profits, and the line
being given a good 195C
companies to give chance to equal, or come close
it the same tax shelter that to,
making another trim com¬
/
An Atomic Favorite
petroleum companies enjoy. parable to that of 1955. .Like
Except for its yield of less other carriers, the forthcom¬
One of the more popular
than 3%, all other technical ing 7%
freight increase is the
issues in drab markets was
indications point to a
neg¬ pivot around which the mar¬
Combustion Engineering
lected situation, probably un¬ ket sentiment toward Penn¬
.which is linked to atomic en¬
known to the bulk of inves¬ sylvania revolves.
Approval
ergy by virture of its steam
tors
and : particularly
the of this increase alone would
generation work for the elec¬ newer
ones.
Even in the divi¬ be about equivalent to reduc¬
trical industry. Most earnings
dend category the company's ing the operating ratio : an¬
forecasts for 1956 results are
payout is conservative with other three points.
somewhat hedged over what
business generally will do in plenty of room for higher
A Gas Bill Survivor
payments in the future.
the second half of the year,;
Phillips Petroleum was the
*
*
*
but
there
are
some
who
company
around which the
eschew any such qualifying V. National Distillers was also
natural

the

disappointment of the
before 3/1/58 thereafter, 42
Industrials /had been /last
shares on or before 3/1/60 there¬ week.
after,'. 35 shares on or before poised on the brink of an all- that
3/1/62. Conversion will
on.or

plenty of

maintained

sold; at

de¬ Than*'it

reelection

leave
vance

ISTREETE

Holding Company,

vertible

The

good market moments.

infinitely higher.

15

such

general

and

U.

S.
-

given to swaying
with the general market
while Allegheny-Ludlum, for
one, was able to make pro-„

-

were

in forging to new peaks.
Allegheny, as a matter of
fact, is one of the select mi¬
gress

nority issues that recently

'

HALSEY, STUART &, CO. INC.

R. W. PRESSPRICH & CO.

FREEMAN

&

COMPANY

BAXTER, WILLIAMS & CO.
-

IRA HAUPT &. CO.

McMASTER HUTCHINSON &, CO.

4

-

SHEARSON, HAMMILL & CO.
WM. E. POLLOCK & CO., INC.

MULLANEY, WELLS & COMPANY

F.S. YANTIS & CO.
INCORPORATED

February 29, 1956

a

16

The Commercial and Financial Chronicle

(1064)

tended
field

Unparalleled Opportunities

output

ahead of the 1945 level.

greater

industrial

everywhere

apparent

for

countries. You

STILLMAN*

and

President, Grace National Bank of New

York

glare

Brazil's

it in

see

the steel

of

pulpmill to use of the speedier
PEADCO process. We are studywas
65% ing
bagasse paper
production
The urge projects
with the use of the
power
is PEADCO process in Puerto Rico,
in
these Colombia and Cuba.

.

Thursday, March !, 1956

.

field in Peru illustrates, I■Relieve,

the main point I amfrying to
make about this ^emendous mar
ket m Latin America toat la now
developing before us. To win this
big market, I think we are gorng
the smoke
As you know, our paper pro- to have to do two things. birst
mill, like duction at Paramonga; confined to we are going to have to tafce a

Redonda

Volta

the

in

more

manufacturing.

manufacturing

In the Latin America Market
By RALPH S.

and

more

of

.

1954

In

kraft

board,

Chile's

or

writing

and

paper

long-range

the

of

view

^m

aimed directly at the American market. And.secon,diy
out about twoi million tons a year Peruvian market. Present studies
we are going to have to get out
in all of Latin America, a ten- indicate that the Peruvian market and sell.
fold increase since prewar days, will be ready to absorb approxiWhen I speak of takmg the
You find it in the 1,000 or more mately twice the 1955 tonnage of long-range view I have
th^ spetextile mills that produce enough paper by 1960 and three times that cifically in mind, a sympathetic
cloth to™!ll 90% Of Rsneeds You amount by 1965. I would not want attitude toward the pressing ecohear it in the hum of the electric you to think that the Peruvian nomic Problems of Latin America
generators which are supplying market is like a sponge, ready to today with the: thought that j>y
more
than four times as much absorb whatever-paper production doing so we will have established
power as in
1929. Yet this in- may come from Paramonga. When a reservoir of good wul that will
crease
in electric
power
is not we first went into the paper busi- pay us great dividends in the
enough to meet demand as the ness in Peruj there was an actual,-more prosperous years ahead,
continued existence of commer- if limited demand for kraft paper
When I speak-.of getting out and
cial power shortages testifies.
hut beyond that we had to go selling, I mean r we. are going to
In their drive for industrializa- out and promote a market.
have to adapt our domestic selling
We had to get out and sell the techniques—the. best in thejworld
no
tton. Latin Americans have ...
.
We have been intimately iden- business.
Those of you who are intention of cutting off foreign idea that proper packag.ng would -to ** „^'n ^TavftoExtend
tified with
the
paper
industry familiar with the Latin American trade- The,r expenence has dis' ®
nmrtnctinn and then sell
longer credit terms
We are voing
since around 1938 when we started republics
have seen with your pelled once and for all the myth our own Production,and then sell longercredit^terms.weare^ou^
rnvwiiir»tinri
national self-sufficiency. They the idea that, for example, multi
to a
PP y
production of paper through thG own eves the astonishing ohvsithrough the own eyes the astonishing physibaga™e proc- eal growth (rf some of Us cities have discovered that new fac- wall paper bags were as pod or to__our_pstomers. In short, we
peg
which we and the rising standard of living
tories require imports of capital better for shipping such bulk are going to have to get out and
deveTooed ^n of its people standarci ot 11Ving g00ds, fuels, chemicals, machinery products as sugar and cement. We hustle. ;
more
recent
Tn thp
ail
and row materials.
They have had to get out and convince the.. This is an unparalleled^ opporA
J™
found that new industries increase grocery store owner that he could tunity for American business. I
bun-eased our L.
thafHmfwT wfth
the national income and this, in sell more if he provided paper would call it a challenge because
ttes
wfth the
th» innrl'n™
tum> raises tfie standard of living bags instead of rolling groceries the opportunities are tremendous.
United Statel E. fnKiwin® Wnrik War TT in and stimulates demand for im- in old newspapers or merely This is indeed the Era of the
Huachipato,

Latin America's vital busi¬
ness
importance can be seen in its purchase of $3 billion
worth of American goods, growth at a faster rate than else¬
where, and in that U. S. businessmen have invested there more
than in any other area of the world. Mr. Stillman believes
monetary and tariff barriers will disappear with rising trade
and investments, and that trend from agriculture and mining
to industrialization will provide still greater outlet for sales to
support manufacturing and increased living standards needs.
The outlook for paper and paper production is depicted war¬
ranting further PEADCO paper production investments. That
America has the largest share of the market is viewed as a
challenge of high stakes worth fighting for. K
Banker and industrialist points out

i

which

turning

are

paper,

is

.

.

i

t

1

•

1

A

11

1L.

.

A
.

T
T

A

wt

AMinnn

w\ r»

nonop

nwr

ft?

indus-

paper

fact, this area of the world 10
growing at a faster rate than any

through

try
the

Davison

other

and

Dewey

and

these

countries

and

Almy

coming

chemicalcom-

which

im-

lation

tistics

will

I

am

in

truly

will

and

the

of

_

Latin

American

hand^them^a -stomer.^ Amer.c^ «to us to

Incongruities of "Welfare State" Policies

.JJ®1"

milLn fn

gentle-

you

•

pur-

p"r

hjJ

g

f

°}

,

million^

$824 7
*.
*

the popu-

mfca 1

C he

tripled

"Survey" illustrates incongruities of the
areas of governmental intervention.

Guaranty Trust's

"welfare state" in various

our-

increas

f5!
ing from $109.9 million to
^5,.™

standard staof the world.

part

con^m^oods. From 1944

amaze

sure

living

this

of

1Q(-.

^ia za

progress

make

familiar with

are

con-

are

portant

Ralph S. Stillman

men

economic

years

the world.

divisions

pany

the

.

trialization

"The

$356.7

evils, contradictions and ab-

surdities of the 'welfare state'

are

placed beyond the fiof such families,

has been

reach

nancial

.

paper goods.

believe

I

tions

hemisphere

the

in

are

reallv

the

earlv

nf

the March issue of "The Guaranty

In assessing the increase in
Lakin American trade, the most

n

fall' profits of builders have given

the

yi

na-

qfaees

™„i fevelnn-

ereat

Consumers' incomes have been
diverted from other avenues of
expenditure into housing. 'Wind-

Survey," monthly review of busi-

of

sumers

results

quick-

ing methods and Harold D.
Viee-Presirlpnf

nf

Tohn

W

Stuck,
■Rnlfnn

in.mni

a

U. S. furnished a mere quarter

w,

„v

£*H/LiS
share had climbed

however
xiuweyex,

j

-forei-

of

sugar
prov.des an
|

trwsUopnegraton

from

to

cane

ten

or

..

these facts to indicate

you

an

academic interest

th^t we have

of

in

the

and

having here at

Convention.

your

opinion,

my

our

large

ad-

vertising, merchandising and
manufacturing firms that have not

very important discussions which
you are

,

hemisphere.

the activi-

79th

thought much about foreign marFor, whatever hap- kets up to now will be in with
mdustry m the both feet within a
reasonably

^aper

Vnited States
a

very well have

similar effect

n°mies

fi°STT ^ c^i <!W'kich exist
Latin

for

an

t

mnmpnt

a

under

ft

*

ma

•

f

+u-—u-

•

+

i?1
tified

with

a

slowly

1950, for

instance,

we

Government

,

.

.

,

,

1%

well

as

3.6%.

gentlemen
appreciate as
I what this competition

in Latin America.

means

also

are

to

aware

crum-

and

rising

vided
An

I

T

year.Latin America
with a
market

iita»i4L

/vi!

J

uuoiuiiicx,

juaun

—

pro-

for

$3

Tin.

*i.

a

tli^

offered

nonrecourse

farnn commodities

at

varying rates. To prevent over¬
production, farmers were required
to accept acreage restrictions and,
under some conditions, marketing
quotas in order to qualify for the
loans."

employers virtually forced to
by abolishing jobs in¬
stead of reducing wage rates in

and

economize

slack periods. The

strike has been

increasingly

used

against

as

weapon

a

and

public

general

the

against
the
Government,
rather than against the employer.

even

strikes have, in fact, as¬
proportions of national
emergencies, forcing the Govern¬
ment into the position of virtual
arbitrator between the contracting
Major

sumed the

parties. The wage demands of
powerful
unions,
by
pushing
prices and cost of living sharply
upward, have become perhaps the

and in President Eisenhower's words,
benefit

unionization.
"In the endeavor to protect
against the hazards of unemployment, old age, sickness, and other

estimated

for

•

i

IO

niost potent instrument^ of inflation in our economy. Meanwhile,
the general level of real wages

demand

4

ri

n/-in

"The unintended result was that

that

paper

per

tained, should rise from the rate
1

I

production
of
the
price-fixed
crops continue^ to increase despite
the restrictions. Even though the
Government
gave
away
vast
quantities of farm products, its
holdings continued to grow until,

i

Ai-

j

j

1

today

find

.

themselves
.

«

_

program,
in ever-

m

,

has

continued

ductivity,

to

with

rise

pro¬

it always has; done,

as

,

and

legislation

of

irrespective

.

•

i

_

:x.'

r

^

America

sup3ect remained our leading regional
Combining this estimated 70%
?°Prce of forejgn supplies provid- increase in per capita paper con-

i

the United States

Pr°ducts, provided Latin 'farmers, the intended
America's growth) rate is main- ciaries of the support
—j*

11%

that the stakes in

paper

A

us

has

i

Yet you

own- field,
the United Nations
Economic Commission for Latin

America

other

some

Europe's share
meanwhile increased from 33.8%
to 36.8%. Japan's share also went
You

quite

on
so-called basic commodities at 90% of parity, and on

slipped to 56.7%.

from

produced

'loans'

-

,

.

gradual

means

+ones*
insure r examPle* for
'fair' prices m

farm

In

""ernational investment capita

"wntiiH

Killi

oKirii

will
,

rrfarktt^ tor American
AmIS?nnn
Ket ?nr

'exnorf
pon

in many countries of

America

ble

dScuss Lath^ Lpla

to

*

feel, too, that many of this market are high and that they
monetary and tariff barriers are worth fighting for. In your

the

of.the United States

and Latin America enjoy.

re^

illustrations of
have

and

of

short time. I

Latin America

in

from the

flow

and

share

w

suit, marginal workers have been

ends
Eurone
our

a

velopment is in prospect for this

more than

in

association

your

,

reasons

to

ties

recuperated

4

rendered unemployable. Costs of
production have been rigidified

abounds in

period of intensive economic de- share of this lucrative market had

.

I mention

cximoeu

sevTrafhou" otJj°uW menti°n 3 g°°d that
many total imports of Latin America's
supplied 62% but by 1954 our
suggesting

_

j*

«

means

that

gSIwSy d£ni£^^ ^heeff°rt^°
products,

minutes.

five

xiciu

PlButg Is ^Western6

(3) Major business organizainto tions of the American nations are
Japan
paper
important gradually developing into interspeed-up in the pulping rate by rational corporate mechanisms.
ished.
residue

jsxicxxe

1

that have been directed at certain

simplified formula for" converting
the

our

uux

•

/*•

declares

adopted toward tkat end," the
"Survey'' continues. "The record

effects

highly integrated unit.
t2) New internations
(2) New international financial
eanizations are beine formed to
organizations are being formed to

process_rocess-

and super-

narrow

ficial economic thinking,"

i

Birdseye,
originator
of
freezing and other food

of

farmers would be getting far more
for their
"To

products today.'

protect tenants against high

taining high levels of business
activity and of providing financial
aid to individuals under certain
intended and the un-

chinnino1

1

^iaoaaa

_

t

,

1•

.

J

wl

?

• /g

nivxvuov

LUA

111ICllUCU

icauii

lo

uiai

ucw

ar,e having another good year in paper demand. To give you a ing and even normal maintenance
1'Vu1"
es to Latin America. The Com- more concrete idea of the growth have been discouraged, housing
JiJiJL vf7
fn
otner merce Department has reported potential of the Latin American shortages have persisted, people
frni^'fhT r<failfW \ aPProclafe that during the first half of 1955 market, allow me to cite our own have been forced to live in antiShfnh
enterprises in We sold $1.6 billion indicating a experience in this field.
quated structures and, in some
AmoriAWetw6 engaged in Latin total of a little over $3 billion for
In 1940 when we had our first countries, comfortable living
ft^
a;n the year* As a further indication full year of paper production at quarters have become almost unaurdcuve area tor
1

"iguiy aiversi-

iiea

investments and that we have

fnith
«

in

h i*f

siDiimes

.

us

.

rapidly growing

^

Latin America is the most vital

■

of

the

world

to

American

A"

,a.ddrf8*

American

New

York

let

me

me

importance to

Paramonga in Peru, we produced

obtainable

at any

price,
price.

the

of

As

for

the

two

are

be-

countries.

unintended

results,

yond question: the suppression of
economic freedom and the bias
toward

tries,

inflation.

In

some

coun¬

freedom of enterprise

and

cite the fact that U. S.

rect investments in Latin America

of 750%.

than in

a

any

world—a total

other area of the
of

$6%

h?1"' St'Hman before its

very

expansion shows

nature is changing.

We have

that

No

installation

will

raise

of

new




1956.

' culture and mining, ,but has

completed

ca-

ex--

facilities that

production

capacity

from 20,000 tons to 30,000 tons

Paje^and PulpAssociation lonSer is ^ concentrated in agri- year. Additionally
City,i Feb. 2i,

now

50% increase in our plant

pacity at Paramonga through the

billion.

A close look at Latin American

productive

■■■
.

..

Us

adopted
tions

with

vary

and
types . of
control
and the economic posi¬

degrees

"To improve housing standards, freedom of contract have all but
the fact that U. S. 2,285 tons of paper. In 1954 we
2,285 tons of paper. In 1954 we
"To
Stouuaius,
f iuiure economic pos- businessmen have made more di- produced 19,456 tons, an increase the United States Government has disappeared. Persons dependent
oi these

tho

countries.

area

of
0f Latin America's

results

uuiiu

a

provided subsidies in the form of

public housing projects and loan
guarantees. The unintended result
is that the construction industry
has
been
overloaded.
Building

fixed incomes have been
impoverished. Beneath
the
'pegged' exchange rates and the

upon

regulated values is an all-

other

inctahiiitv

that

mak^

p
for a mockery of all devices for eco-

costs have risen to unprecedented

,

.

„

we are going heights.
Housing intended
ahead .with., plans to. convert our middle- and low-income families nomicisecurity."

,

.

.

.

Volume 183

Number 5512

..

The Commercial and Financial Chronicle

.

(1065)

Teachers

Educational Cost Reduction
Securities

Salesma
Corner
By JOHN DUTTON

Efficiency

America

the theme for this

For

More

and

be

Jobs"

ing back

year's Invest in America Week to be
'*

■*

awakened

higher salaries; better schools, libraries
and equipment; more self-education, and
greater freedom for
school principals and superintendents. Mr. Babson stresses
"how to live" courses and instilling desire to seek
knowledge
in children as step towards better education.

The Week is sponsored by the National Investin-America Committee headquartered in Philadelphia,

country.

Education

on

of

the

Investment

Bankers Association of America has published a special
In vest-in-America edition of the IBA educational bulletin

now

of

our

welfare and the welfare of

own

whom shall

blame if

country, then

our

generation of citizens
receiving subtle doses of socialism, paternalism,
leftwing ideologies, and Keynesian economics in our
schools and colleges, over the radio, in the press, and from
the lips of demagogic politicians, someday vote themselves
into political strait-jackets,
economic serfdom, and a
managed existence with the right of self-determination
sacrificed for a mirage of vacuous security?
who

i

we

our

younger

are

Those Who Know Should Show the

Way to Freedom

Unless the

people who are qualified to tell the story
of free enterprise do this job others who are not so well
qualified will confuse and misdirect. There is no story in
all of human history that is more inspiring than man's
upward climb from the darkness and misery of his lowly
estate as a serf and a ward of the all powerful state.
The progress

of the past two hundred years has come only
through a denial by the people of the right of a few
powerful men to control and regulate their ECONOMIC
ACTIVITY. When capitalism came to the world darkness
and

When freedom of choice came to

despotism fled.

mankind he

began to throw off the shackles of fear and

earth has

>■

that

Nowhere

failed to

help the people to live better and the freer it

on

been the better the

has

would tear

down

a

standard of living.

Those who

private enterprise would also enslave

despoil not only man's heritage and material well

and

being but also his ciyil and religious liberties, | so long
denied, and only

so

recently achieved by mankind in this

high

In the

/

war

either sell
If

we

No

lose it

we

brand of capitalism

lose this battle.

cherish.

good American can possibly excuse himself if by his

laziness and indifference further

would

who

controls.

-

gains

are

made by those

replace free enterprise with governmental

Those who have

something

as

precious

into this battle whenever

they have

an

opportunity, day

night, again and again, as long as they have breath in

their

body, feet to stand upon, and a

voice to speak.

Every city in America should have an

self

American Week" this year,
Business should lead the
and

you?




and those in the Investment

way!
<

How' about
.

you,
:

and

you,

and

The

service

-

supermarket
will show the

wa/'-

-

Some

attended

had the

the

schools

same

teachers.

same

is

to

teach
»avu

children
vrnwicu

and

ful librarians,

Yet three

perts

o

n

,

,

t

ne'er-

the

first

DidI the schools have
any

is:

C

fe

or

—

Traveling to the Moon

o

on

li-

The

books

most

popular with
youth of today are books on
d»Space travel"—that is, going to

a n

the

*e?uU Amieal- other Planets.
the total

It

,

of

more

a

a

?heSti£n 'J!1?, mother

let66'

of these bovs'

Duiiaings,

<

devote

now

by

supported

was

,4

s

oraries,
and

"delinquent" and is
do-well

and

spend less
Roger W. Babson

boys

One of the

urg"

are

w

positions.

asks

F*?« li?£
cities
t

men are today useful in
their communities and hold good

edu-

mg

is

said

Form Penick & McClure

In Dallas, Texas
DALLAS, Texas

the

in

students'

interest.

I favor

with oHices

building better schools with better

libraries

and

equipment, but

having fewer teachers.
better

salaries

to

Then pay

these

fewer

teachers.

campaign is
A parent can

education.
set

of

world

learning about their
and

how

Something is

The most vital field for
It-Yourself

than in

"Do,-

a

that

of

buy

a

Education

live

to

wrong

Officers are Thomas J. Penick, President and Treasurer and
ness-

Fred L. McClure, Jr., Vice-President ^d
Mn

SeTretaryf

should

in

son,

teach

how

to

It should help parents mold
character.

was

trading

manager.

C. W. Fieth Opens
KANSAS
+

CITY, Mo.—Clarence
iuu.-vi««jw

J1,3? „°Penf^ offices at

1^18 West 61st Street,

Hardy F. Glass Opens

it?

live.

McClu7e

formerly an officer of HudStayart & Co., Inc., for which

was

own

somewhere.

Penick and

the Kirby Build-

ing to engage in a securities busi-

that Mr. Penick

about any other subject.
Why is
ft that young people are so much
more
interested in other worlds

—

McClure, Inc., has been formed

Washington is having more inlotment to teachers salaries. This
quiries about the earth "satellites"
may be good politics, but it is not which are
to be released than

Hardy F„ Glass has opened of¬
fices at 55 Liberty Street, New
York City to engage in a securia^cw

ties business,

encyclopedias

which

contain

for
$100
information

more

i

=

than is contained in the heads of
all the teachers
in
your
com¬

munity.
Moreover, the training
and discipline of self-education is
even

facts that
I

valuable

more

that

movement

above

13

all

than

be learned.

can

forecast

the

an

offer to sell

nor a

solicitation of offers to buy

any

of these securities.

The offering is made only by the Prospectus.

the

Hence,

next

in education

This advertisement is neither

great

Not

a

New Issue

February 26, 1956

for those

of age will be
teaching students to learn with¬
years

teachers.

out

wish

I

that

some

city would put the managers
its self-service supermarkets
their

school

What

150,000 Shares

of

Aluminum Company

School Board

Know?
To

begin

with,

don't know who
school board.

probably
local

you

are

on

of America

your

If

not, send to your
Superintendent of Schools and ask
for

list of the members and the

a

business in which each is engaged
and the number of children which
each has in the schools.
be

1

on

boards.

Does Your

CommonStock
$1 Par Value

You may

surprised to find how poorly

chosen these
for

this

and

men

women

In too many

members

are

cities, school board

interested in getting

income for themselves

or

builders,

doctors,

as

are

work.

friends

insurance

bank
officials,
store¬
etc. These school com¬
naturally take
the advice of the Superintendent
agents,
keepers,
mittee

of Schools who

but

Price $87 per

share

members

is

is

guided

honest

an

the

by

what

determine

man

colleges
shall

be

Superin¬
tendents
and
School
Principals
are too often judged by the num¬
ber of students they pass along
to the colleges, and promoted ac¬
cordingly. They are fine men and
women; they deserve much better
pay,
but they have very little
how.

and

The

Copies of the Prospectus may be obtained from any of the several
underwriters, including the undersigned,-only in States in which
such underwriters are qualified to act as dealers in securities
and

in

which

the

Prospectus

may

legally be

distributed.

freedom.
What
I

have

Education?

Is

just

been

reading

re¬

ports of the recent Conference
Education held in Washington.

on

The

great demand there was for
Federal aid without Federal in¬
terference.

"Invest in

effi-

operated.

as our

enterprise system of capitalism to protect should go

free

or

or

will have lost everything we now

sure way to increase the ef¬
ficiency and reduce the cost of
our
schools and truly help our

economically of the

taught

of ideas those who believe in freedom must

our

knowledge

To get back to my main appeal:

children

ciently

which

world.

country and other nations of the free

interest and

my

desire for

no

more

free economic system

despair.

won

way to cut costs,need today is to tackle the edu- where to find their own answers
primary and gram- cational problem as we have T.B. to questions and awaken, in them
I believe, however, and polio and cancer.
a desire for more knowledge. We
schools and colleges
I have in mind a family of four need teachers born with a love
will become grown-up brothers all of whom for children and
trained as help-

see

'

.

a

of operating
mar schools.

which will tell you how to
Week in your community.'

organize an Invest-in-America
Last year there were observ¬
ances in the
following cities: Atlanta; Charlotte; Denver;
Detroit; Houston; Kansas City; Lincoln; Los Angeles;
New York; Oklahoma City; Omaha; Philadelphia; Pitts-;
burgh; Providence; Richmond; San Francisco; St. Louis;
Topeka and Washington,; D. C. Write to Erwin. W.'
Boehmler, Educational Director, Investment Bankers As¬
sociation of America, 425 13th St., N. W. Washington 4;
D. C., for your copy of this bulletin. ;
■
;
,','v v
Investment brokers, dealers, commercialr bankers,
savings and loan associations, and your local newspapers,:
radio stations, privately owned public utilities and busi¬
ness firms in
your city can all band together on this one.
If privately financed and privately owned American busi¬
ness
is not sold as something desirable to the public,
something else will be bought by the people, and there
are
many organizations in this country which are selling
something else day in and day out. They are not too
lazy, nor too busy, nor too self-centered. They are dedi¬
cated, clever and persevering in their efforts to constantly^
unsell the American people on free enterprise and on
capitalism,
If those of us in the Investment Business are negligent

Look¬

One

■

I

•

degrees

my

service.

and

.

_

Committee

the

school life, it
the teachers with the biggest

hearts who

at

efficient.

be paid bet-*

upon

over

bigger "hearts"

is

celebrated April 29-May 5 in cities in all sections of the

The

based

Noted New England financier advocates fewer teachers with
Better

spiritually

be

which they have received.
was

in

be

to

salaries, yet this salary should

not

By ROGER W. BABSON

Invest in America Week
"Invest

order

Although they should
ter

And More

should

minded in

17

was

Very little discussion

devoted

to

what

should

was

given

lowering the cost

efficiency

to

discussing

or

raising the

of schools.

The

The First Boston

Corporation
.1

New York

Boston

Pittsburgh

Chicago

be

taught our children and how. No
time

j—

great

Philadelphia

Cleveland

San Francisco

The Commercial and Financial Chronicle

13

Gold Shares

t.

Investments

as

Confronted
"thoughtful investor" i might well reach
the following conclusions:
<
or

inflationary.

and

;

inflation, the money

3 aper money

rait

of

2ost

the

its

rnd

f.C h

of

period

historical

every

involved

nation

value

in

of

terms

has

goods

services.)
of

<

no

tion

with

dollar

estimate

or

our

of

wishes

o-called pur-

citizen

and

$1.78

zrchase
900!

as

much
has

$1 bought in

as

hurt

the

hard¬

thrifty
saver
pf
the
unit and temporarily .benin terms of money units,

money

fited

the

of

owners

kinds- of

certain

property and goods, and the pro¬
ducers of certain kinds of services.
It

is

the

not

of

purpose

this

ftudy to become involved in the
complex

issues

managed

< ur

with

concerned

paper

money

and

credit system, and its use in con3'ection

with

international

our

domestic

tud

controls

economic

politics,

and

military
power,
.Socialism, Communism, etc., nor

tie

merits

rstem

of

] Jy only

money

we

tem

which

in

,'hould

f

do

is

standard."
is to point out
se

per

serious

very

how best to

a

sys¬

inflationary'
investors

that

and

interested

be

a

to

opposed

have such

now

character

have

as

this

of

"gold

purpose

that

i

necessities

or

historical

the

in

and

fact

problem

conserve some

as

part

t their'savings

c

and hence some
of their present good stand-

rart

rd of living.

{

his

;

per-

own

(producers and
pinched by corporate

people

oold

of

considered

are

no

public
tion

this

at

that

was

are

we

mercy" of these for¬

gold, he replied:

of

owners

.

;

.

highly significant

business consultant with the

a

"public" is looking the other
national stature
will find them at--

way'-now but

that

meant

I believe it is

opinion

In my

time.

eign

he

When

1949.

this

"That's right."

specula-

and

investment

in

if

then "at the

i.e., stocks,
interest in

equities,

tractive at some futuie time and
at much higher prices. Sound investments and values are usually
acquired by far-seeing investors
the foreign
owners.
This could under < such circumstances. ' The
occur
whenv the gold
which is interesting thing is the high price
worth only $35 per ounce in the jn
relation to dividend income
U. S. can be used to purchase
that good gold shares command
more
goods, services and politic- now
Investment usually ; assocical
and
economic power elser ates* low prices and h'g'i yields
with a large degree of future risk.
where.
\
Gold's Merits
■:>; Examples and a few comparisons:

well

the

Foreign aid

loans is one
Today,

or

examples of this.

They

are

of

course

a

goods and services, is at
loss to calculate exactly "what
as

•

present .inflated
economic
structure.'This would be the gold

they will do next" and "when."
V/hen he observes surplus food

mining,

production stored in warehouses,
in ships (idle ones rusting away
in harbors)J or under canvas to

the

,

who

in
the

industry.
sincerely

is

and

reputation of

Mr. Shields believes ti:at GOLD is
now

present possible

a

financial

in

weakness

of

source

econ¬

our

Surely the investor is pri¬
marily interested in our financial

omy.

affairs.

I believe it is particularly
significant that Mr. Shields would

speak of it.
ment from

questions as outlined will find
good gold mining companies
following characteristics usu-

ally associated with SOUND INto-wit:
consumption, and VESTMENT
'
thus
through these subsidies to
in<*ustrjr
c
maintain prices sufficient to shoW"[
commodity having a
some
profit margin to that por¬ acceptance and use as payni
■#*,'
tion of production offered in the;p
exchange fQr goods
^'
market, he is confused. It doesn't and as a vehicle for the conservar

the markets for

•

*

j

„

-

make

taught to. °/VVhP cdmmoditv "eold" is
ri
conserve
and - not probab y ^
thei cheapest commodity

had

who

work, . save,
"waste things."
has

and

stand

else does,
of
some

old-fashioned

this

to

sense

person

been

u

He doesn't under¬

suspicion

a

one.-

no

today .1

available

currency.

paper

and that this is all part
mysterious
conspiracy"'

wonders

long
the

quite

this

can

;

v

^

;r,vanin.

same

on?'* When
he

manner

;

-

II

*

credit and money

1933

in

-

observes

supply' made

so

plentiful that the products of jn-.
dustry, homes, automobiles, ap¬

.

195?

GOLD,, ounce-- $35.00
70
pound-

$35.0(F

pound-—

3.560

160

Zinc, pound— —
Commod. Index

40

130

430

Copper,

Lead,

Note:

If

111.3

42.8

investor

the

Dif.

•

Yield

4.5%

46

$2.17

58

2.4)

Hoiu'nger c7n:oi."~II

21

.r4

Homestake Gold m.___

35

2.(0

5 7

17

.80

4.4

14

.7)

and

We expect such com¬

historians, philosophers

professors

and

of

students

monetary history who frequently
express their views but not from

2.25

believes

the likes of Murray Shields.

It is
usually a pretty hush hush sub¬
ject and usually associated# with

5

i7

Mines"-"""I"
u. s.

Smelting—III"

v.

fnrppninp

4.1

"crack-pots" and "old fogies"!: It

1

could

that

be

"times

are

chang¬

ing"!

3.9

: "rpasons"

for

.

.

entlrely unbiased objective and
conservative investment ptinj of
Y^- ,By
Is. 1 mean to su.g st
the problems of Investment

Gocfishall^Rees With
Clement A. Evans Co,
ATLANTA, Ga.

—

Following

a

meeting of the Board of Directors
of Clement A. Evans & Company,
Inc., First National Bank Building,

generally involves the use of acin

savings

cumulated

proper y.

which will produce a maximum of
income consistent with no loss of

capital.

Because

appear to

of what

would

be the certain continued

yalue

q£

loss

of

our

money

unit,

through politically managed paper,
inflation,

currency

investor

the

barted from using an ortlio-"

seems

vehicle

like

bonds

paying

a

sum

of dollars at seme fu-

ture date.

;

:

He

"how

naturally

go

'55

Price

dox

,

~

that isn't in his best interest.

yr.-end

lhe. iore£»omg ■/.reasons
The investor
erest now
concerned with Sn^res i consider
from «n

these supplies from hitting

keep

'55

foregoing

the

If

central

working
t

billion

asked

,

also,

Watson

Forest

-

to

This

a

thought anymore."

,

of the

the investor observing the
government "regulators"
or
"managers"
turning
money
and credit supplies on and off, as

of many

3

po¬

it hardly

He was refer¬
ring specifically to the fact that
foreigners now have short-term
gold is the only monsy accepted
claims
upon
our
gold reserves
by governments in adjusting their
respective trade balances.
The totaling about $19 billion which
they can draw down upon .de¬
rest of international trade is setmand.
He pointed out that such
tied on the
ancient method of
claims amounted to only some $6
"barter" in part because govern-

lists some of
the real probabilities, and I believe it does, the investor could
well conclude he should interest
himself in the one industry which
is
currently
greatly
"deflated';
and which is entirely outside of

ment.

re-

19 3 9

to

undertak¬

gold

our

give

People

sition.

ments and individuals do rot
control of the - 'dxust" each other's money units,
because

is

weakness

nancial

-

of Labor Sta¬

in

a

as

con¬

party

a

and

regardless of

ings

tistics

oaired

own

sonal wishes, necessities or judgr

Bureau

it

made

ventures

his

Today
he is

taxpayer

being

financial

19 3 9,
according

o our

necessities.

or

stantly

power

vs

s

r»nd

im¬

More

with

accordance

in

not

about 52 cents

chasing

risks.

his

so

all

Deflation may be forced
upon the "regulators" by low-cost
foreign competition, or the withdrawal of their gold reserves by

demand

and

imp0rtant that the
governments is appraised in relation to its gold reserves.
It is so important that
is

of

problems of
business, finance and the

general economic outlook, he said:
"Another possible sourca of fi¬

(3)

portant he could assume risks or

worth

terms

affairs.

goods swung back and
forth in the business cycle more

supply

product-gold-is impor-

It

credit

personal debt, taxes and loss
of
purchasing power *: of their
goods and services, or

of

with

the

tant!

and

goods, services and credit. The
who wished to "specu¬
late" could more accurately judge

excep¬

•

financial

and

P;;,'..

may lose
mechanism

consumers)

investor

ountry today
y

economic
Prices

(if they

periods

(5) Contrary to universal opin-

ion

they do have very great

of

force

for

our

i

was

relatively
simple.
Government
played a relatively minor part in

nearly

experi¬

e

ence

wealth

of

v

(2) The "regulators" and "man-

agers"

conservation

or

INTRODUCTION
In

•

this

etc.) or—

serve,

whole

V

serious questions and
current

and controls—Federal Re-

powers

economy.

our

certain

for

can

tiation of his view that

weakness in

this dilemma

and

(4) inevitable price increase. Mr. Watson finds substan¬
gold is a possible source of financial

and

..

Thursday, March 1, 1956

.

ated with value and opportunity

(1) The "regulators" and "managers" of the economy may periodically allow or cause certain
sectors to deflate at certain times

Securities dealer describes monetary system as indefinitely
Recommends including gold mining shares in
investment portfolio in preference to bank deposits, bonds,
or
paper currency due to gold's: (1) universal acceptability;
(2) deflated price; (3) ultimate salvation of the economy,

|

government bonds.

with

Seattle, Wash. V

President, YVatson-Lamoreux Inc.,

f

>

.

for gain.

steady erosion of the value of his
currency or bank : deposits,

cash,

By FOREST WATSON

*1

.

(1066)

He must, whether he

fixed

likes it or not, be'a speculator for
tbe most part. This is to say, he
tnust

constantly' speculate as to
industry and which com¬

which
pany

R. Ellis

Godshall

-

Arthur F. Rees,

HI

President,

an¬

is not overinflated in market

price, and which are most likely
to temporarily do more business,

make more profits, pay more divi-

Clement

,

Evans,

nounced that R. Ellis Godshall and

Arthur

F.

Rees,

III,

had

been

pliances, etc., may be purchased,
elected
Vice-Presidents and Di¬
I am, in the philoHe is rectors. The two new officers will
by millions of people with little government and other debt will dends, etc. than others.
i iphical, political
or even moral
eventually
become
so
overex- concerned because it seems more
or
"nothing down" he wonders
i ^ects of the issues involved but
make their headquarters in the
tended that a severe readjustment than likely that some years hence
how long that can go on. In short,
Atlanta office. Both men have had
t ie practical question is how best
of these factors must occur, then it will require $4 or even $10 to do
while he doesn't understand the
wide experience in the banking
f } conserve, survive (financially)
I and investment
complexities of these vast manip¬ all presently (or then) inflated the work of $1 a few years age.
i nd
live in the present and the
field, and were
ulations on a world-wide scale, prices will be readjusted down- conclude the conservative investor
i -'cure.
formerly
associated
with
Han¬
common sense seems to tell him—/ ward except GOLD.
Under these has every reason to have no concock, Blackstock and Company,
One Solution
"there has to be an end some¬
circumstances the need for con- fidence in the future value of cur
Atlanta. • <
V
It is my belief that investors time" and he only wishes he could fidence in the money
unit and paper currency, but every reason
/ 'iould
assign some portion of figure out someway,
somehow, credit will be so great that the to have confidence that Gold wi 1

interested,

as

their accumulated

savings at this ""When."

carefully selected port¬

tune to

a

folio

mining company
Note I suggest only "some

of

hares.

i

portion" because I realize that in\ estors
must
speculate
under
present conditions in an effort to
] ave their funds invested in the

profitable earn¬
ings industries in order to main¬
tain their standard of living in
c

urrently

most

period of a depreciating money
unit, and the gold mining indus¬
try is not favored in this respect
i t the present time and may well
3~.ot be anytime soon.
However

t.

3 ay

for believing that
portion should be so invested

reasons

i arne

{ire

as

follows:

r

:

admittedly "managed" and

egulated'economy we now have
j obviously a compromise as be¬

tween
{.nd

form

"State

r,r

it

a

so-called

is

and

"free

enterprise"

of "State Capitalism"
Socialism."

by

whatever

Whatever
name

it

by, it has created unusually
complex problems of investment.
/,oes

Prior to the

collapse of

our

free-

cwinging individual capitalism in
1333

the

problem




is

really thinking in the foregoing

terms

of investment

he

business,
ties

of

can

course

his goods,

or

or

sell

his

his equi¬

stocks) and take the
in cash or money, i.e.,
paper currency or bank deposits.
And
a
lot
of people
in recent
(i.e.,

proceeds

not

have done this periodically
knowing anything better to

do.

Of

years

these

course

who

a

have

.good

sold

many

their

of

prop¬

high"
government
bonds which pay a little better
than
bank savings interest,
and
with a rigged market they have

erty

have

felt

Added Investment Difficulties

The

Now if the present-day investor

it

because

was

in

"invested"

confident

"market risk"

"too

there
—

was

little

they could "get
At about this

their money, back."

point, however, the thoughtful in¬
vestor concludes that no political
group can

mits

any

stay in power if it per¬

considerable

in the prices of

deflation

goods and services

(wages), and that, therefore, debt
and

ably

money

be

inflation

continued

accompanied

will

prob¬

indefinitely

unfortunately

by

a

never

tion, increase its supply (down in
contrast to everything else), and

priced higher in terms of our unit
of money at some future time,

reserves"

Thus, no matter how successful
his speculations in other areas

to

bolster

which

our

are even

considered

"gold

important

fidence in government

and that it will in fact be

per oz.

at the present time

Forms Richards In v. Co.

be less in price than $35

price of gold will probably be increased to stimulate its produc-

Indefinite Inflation

gold

to
con- may be in the meantime, his tackcredit.
log of goldshares should over an

Good, well-established gold

Richards

curities

is

engaging in

business

from

1235 Van Ness Avenue

firm

name

se¬

a

offices

at

under the

of Richards Investment

Co.

more valuable than paper currency> bank deposits, or "bonds"

have:

E.

»

FRANCISCO, Cal.—Meryl

extended period into the future be

mining companies with proven reserves
and
good
management

(Special to The Financial Chronicle)

SAN

of any kind.

(3)

operated profitably and
paid dividends under the most
adverse

conditions.

'

In presenting the foregoing

,

its

(c) have susbtantial working

capital and owe no money ex¬
cept for current wages, supplies

I

have

no

illusions

con¬
as

to

general

than I

indebtedness or bank loans.

LOS

-

,

'

ANGELES, Calif. — Harry
conducting a securi¬

M. Roman is

clusion

(b) have no long-term bonded

(Special to The Financial Chronicle)

Present Financial Weakness

(a)

Harry Roman Opens

tion

acceptance anymore
had acceptance to my no¬
shares of

that the

many

ties business from

West

offices

at

3337

Olympic Boulevard.

.

'

Taylor Opens Office

de¬

pressed industries presented great

(Special to The Financial Chronicle)

taxes.

THEY

ARE

SOUND'—usually
characteristic

for

opportunities for profitable in¬
during the past decade,

LAKE WOOD, Calif.—Gwen A.
Taylor is engaging in a securities

but

and

business from offices at 4234 Fleet

vestment

I

am

encouraged in

my

con¬

FINANCIALLY
a

viction by a recent statement by
most desirable •Murray Shields,
economist ard
a
conservative business consultant, a trustee of

investment medium.

1

the.. National

Industrial

Confer¬

The product of these en¬ ence Board, and otherwise closely
terprises—gold—has a universal (associated with practical business.
market.
There is no problem of The statement appeared
in the
(4)

sales,
There

credit
is

in

or

fact

overproduction. *"U.-S. News &-World Report,"-is¬
a
SCARCITY sue of Dec. 22, 1955.
When asked

—the latter factor usually

associ-

to

comment

on

some

of the most

Haven

•

Road.

Amer. Interests
EL

Interests
Paso

Group

PASO,- Texas ^— American
is

Gyoup Services of El
engaging m a securities"

business from

offices at 1311-In-,

gersoll. John R. Karr is a prin¬
cipal of the firm.

Volume

183

Number

5512

.

.

The Commercial and Financial Chronicle

.

(1067)
Feb. 23 elected Robert R. Rudloff

*

News About Banks

The

branches

new

officers, etc.

Bankers

and

revised

three

erland

largest bank, d.sclosed

s

Feb. 28 in
tion

its statement of condi¬

of

as
as

each,

cn

Dec:

31,

1955,

payable to

crease to

10.
pn

approved; the inthe amount of $9,150,000
effective Feb. 15.,while

profit of 25,782,733 Swiss Francs

became

($6,016,973),' compared

the further

with

shares, par $5
shareholders of

record had been

net

a

of 36,000

the

of the

increase

shares

March

Brown

2,984,-

892

Swiss

advances
022

Francs

to

Swiss

Parker

($24,331,363);

&

the

/

Charles

W.

McCord

of

Wall

Street, New York it

York,

was

tional

Ky.,

is

native

a

and

Bank

dend

an¬

of

Vice-President

of

Co., Inc. In his

new

Meinhard

of

Portland,

capital

a

of

time

appointments
Walston

were

W. -Cameron

Treasurers

C.

Slack

in

the

at

and

Assistant

as

the

same

Gallie

Commercial

Banking Department.
*

-•

Malcolm

:!

Bankers

/

R.

*

the

charge

in

Company's

7

of

(New

nounced the election of Lawrence

Group,

of

the

Public

the

to

of" 682

Broadway Office,
Oliver-'M. Mendell, of the 1107
Broadway
Office;
J.
Bradford
Wilson, of the 42nd Street Office,
and Frank J. Hynes of the Wall
Street Office. Mr. Tait, who joined
Bankers Trust through the merger
of that institution

National

began/his

.

•elected

his

t an

in

dent

in

1951,

with

career
1941
and

ih

was

Vice-Presi¬

Assistant

Mr..Cooper started

1946.

the

with

career

with the Com¬
Bank

banking

Commercial

bank

an

as

Assistant Treasurer in the Invest¬

Division

Research

ment

*

in

1951.

*

*

George
Spinner
has
been
elected a Vice-President of the

#

Comptroller
the

reports

of

capital

National

of

Bank

of

plans

to

enlarge
in

peared

the

capital

issuel of

our

ap¬

«•;■

v

*

•

..

.*•

An increase of

f

brought

■

Feb.

Feb. 24 by D. Mallory

Stephens, Board Chairman, and
Jacob
Leichtman,
President.
A
Assistant

Spinner

Middlesex

thereby

0f

as

the

County

capital of
National

becoming

$1,8JO,UO0

Feb.

-

*

later

was

National

City,

sey

N.

capital

Bank

cf

tive

Jan.

25.

Reference

to

the

plans to increase the tank's
ital

in

appeared

*

The
1st

Jan.

our

«

National

stands

26

000

and

Slate

Bank.

,

*

J

The

the

recently enlarged capital of
National Bank cf

Pranklin Square, N. Y. to $9,748,
O00 became effective as of Feb.

Details
the
in

the

ol

plans

to

to

in

increase

bank

suance

the

common

that

now

to $9,150,000 by

of

a

semi-annual




the is¬
stock

He
of

fective

with

recently
the

havP

7--ft nnn

p

'

was

due

to

inr-rPacpH

f

f

Ui

Florida

crease resulted from a stcc.x dividend of $200,000, while the further

thp

naddition of $300,000 was brought
about by the sale of that amount
IHOredae

LUe

stock

a

Petersburg,

000 to $1>500,000. Part of tne in-

Additions made to the capital of
the Old-National Bank in EvansIndiana

_

dividend

0± new stock-

of

$187,500 and the further addition
was

made

$62,500 of

possible by the sale of
new

As of Feb. 9 the Merchants Na¬

stock.

*

*

Northern

of Chicago

the
to
10

tional
*

announced

^0 of new stock. An item bearing

in
in

thp
tne

the consolidation effective Dec.

Denartment
DePartmentDepartment.

1951,

Mr
Mr1 Mr.

'

company

National

Hon°lulu-

'

Prior

'

The

National

Chicago, 111., which

T

stock of

charter

tional

$350,000;

and

Bank

of

$3,750,000 under
title

of

the

advertisement
of

effective

the

capital of the latter

date

of

the

is

of such

NEW

not

of

stock

a

and

these

transactions,

the

c+nnlr

nov

«10

Rft

of not less than

$2,942,813.57.

Named Directors
R.

James

Foster,
Greenwich,
Conn., partner in Rand and Cornn

William

d

ana

S

vvuiiam

Greenwich,

Los

As

result of

a

of $250,000

a

stock dividend

the capital of the Oue-

Kies

&.

Conn.,

of

have

Nati0?,'f,nn
Z mTm
$1,000,000 on Jan. 13,
nnn

became

process

patents,

tubing

own

of

stock

several

and

.

under

no

.

....

circumstances

to

be

construed

as

solicitation of an offer to buy
securities. The offering is made only by the Prospectus.
or

as

outstanding

Fred

n

a

an

P

offering

any

February 24, 1956

150,000 Shares

&

of

Trust

died

First

Co.
Jan.

on

of
28

in

the

banking
more

National

Paterson,
at

the

age

began

with

Deposit
in

messenger

to

elected

a

business

than

Copies of the Prospectus
the several underwriters

may

as

are

be obtained in any State only from such of
registered dealers in securities in such State.

in

Johnson, Lane, Space & Co., Inc.

50 years.

quoted, added in part:

paper

vanced

Share

Vice-

years.

"He

Safe

Class A Common Stock

Price $5 per

retired

the

Paterson for
The

(A Florida corporation)

is

According to the
Newark "Evening News" Mr. Labaugh, who was born in Newark,
was

Radiation Inc.

*

Labaugh,

President
Bank

*

the

&

the

Trust

Paterson
Co.

as

Scott, Horner & Mason, Inc.

Grimm & Co.

a

1894,

and had ad¬
position of Treas-

Prescott, Shepard & Co., Inc.

Saunders, Stiver & Co.

Howard, Weil, Labouisse, Friedrichs and Company
Vice-President in
*

1933.

*

French &

The Board of Directors of Bred
Street Trust Company of Philai

delphia

at

its

meeting

held

on

Crawford, Inc.

ox

foi*
i

conditioning, and fume and

dust removal.

is

types

air handling, materials handling,

having been increased from $750,-. air

and

manu¬

ducting

160,000.
*

of

beerl

design and

$3,200,000. The number of

shares
now

jr.,

Flexible Tub-

in¬

ex-

Jr

rues,

President

Angeles, Calif., which

floxible

ISSUE

undivided

an-

stock, par $12.50 each; surplus of
$4,517,187.50 and undivided profits

factures, under its

divi¬

an

At

merger
was

nounced by the Comptroller of the
Currency as $4,482,812.50, divided
into 358,625 shares of common

o£M<>bi^e^ith the Loop,

of these securities for sale

any

Na¬

Washington.

the

nnn

000.

month ago

a

thp

Feb. 2, page 640.

Ehit*
Security Bank of

with

of

Prichard National Bank of Prich- eiectea aneciors oi uiexioie iud
ard> ,A)a. appeared in our issue ing Corp.,. Guilford,
Conn., and

La.
•

the

Kjes & c
National Bank or Mooiie ana tne w> g. directors of
glected

after attending the AdManagement Program at

to that he had been in business in

Mnuiip

Side

$100,000 into the National Bank
Washington, Tacoma, with

common

30 consummated by the Merchants Pany>
M

West

in-

Ala.

Feb. 24

on

Murphy joined the trust
in

Mobile,

$2,525,000 by the sale of $503,-

Vipp-Pro<?idpnt
vice-^resiaent

1 USt
Trust

of

the

Yakima, Wash,

stock

common

creased its capital from $2,020,000

Banking Department.
He had
previously been a member of the
bank's

Bank

Company

Trust

promotion of Spencer Murphy
Second
&econa

of

*

As of Dec. 14 the First National

St.

of

common stock of $25,000; and the Selah State Bank of
Selah, Wash., with common stock

of

in

cf

10

Bank

Wash., with

souri State Bond Issue, and has
served
on
various Missouri
Bankers Association Committees.
...

Feb.

*

made known ef¬

the Naches State Bank of Naches,

Mis-

repre¬

an

of

1945.

*

A merger was

National

became

$1,980,832.

*

of

shareholders

*

stock

in

J

St. Louis,
joined the

1937

Treasurer

as

less than

-

is¬

increase

capital of the bank were given
issue of Feb. 2, page 639.

.of not
1

increased its capital from $1,000,-

in surplus of the bank from
$6,250,000 to $7,000,000 by a transfer
of
$750,000 from undivided
profits.
After • giving
affect
to

our

tin that item it was noted

the

16.

in

' $6,960,000 and undivided profits

.

crease

*

Franklin

who

bank

President

\

Trust

$11,000,000. This

the result

as

dend

77

Commercial

Banks,

served

a

$250,000 in
capital from $3,750,000 to $4,000,-

of

joined the Metropolitan Indus-*

Mr.

Bank

This

Paterson, N. J.

increase

an

J.

*

Mo.

$1,500,000 by

corn-

10 each; surplus

Bank of st- Louis, at

ex-

*

surplus of the

Bank

of

at

sents

N.

In 1949

?8,430,000, di-

vided into 843,000 shares of

v

cap¬

*

capital and

Company

the

with

* "

U50 000

v

sue, page 538.

and

trial Bank which was merged last

April

nation's

frcm

stock

a

dividend of$90,090, became effec-

with

Trust Co.

of

Jer¬

increased

J.,

$3,060,000 to $3,159,000 b,y

York

Manufacturers

oi

-

,

/' c.tanJs Mational $4,500,000
Bank cf
Va. up to

vanced

*

newly enlarged

First

New

of

Bank of Arizona. At the

bank -to

Harvard School of Business.
The

the

associated

Bank

tional

he

bank'ng

his

in 1910 with the First Na¬

career

2,

8, compared with $1,600,000 previously.

Vice-President,

began

the

the

of

*

Bank of Everett, Mass. by a stock
dividend of that amount, the cap¬

cess

former

,

c.f

Sl®cf aivfaencl ot ?150,00J.

announced,

Richmond,

tii1

and

Bisbee, Ariz.

came effectlve on Feb. 3. ; The
merger was effected under the
charter and title of the First Na-

■

^

from

The,

profits of the bank stands in

Mr.

the

hrm/h/'/rl0//,31. ?ITmtdla!;
^
Pva/ °V»e

,

$200,000 has been
in

about

#

• ■

Company of New York, it was an¬
on

in

increase

vjiip

Miners

of

merger the
enlarged First Na Uona IBank had

banking business.

the

Commercial Siate Bank and Trust
nounced

permit

c

the

and

Assistant Treas¬
urer of Arthur C. Christensen, of
Banking - Operations; * Nathan

mercial

*

S.

indinoinrl
CQ/IO ftftd c+nolr
indicated K-ir a $300,000 stock /litri
by
divi¬
dend and the sale of $200,000 of
new
stock.
An item bearing on

of

post

Vice-President

appointments to

Bevine,

accounts' to

i

the

Bank

In ^ Mnnn^i tn^^nno'ef{.ectIV® date o£ the

$3,000,090,' the new capital
having been made effective Feb.

Bedford, Mass., effective Feb.

ital

Utility

Maine

$1,218,750,

$1,100,000. The capital was
raised from $600,000 to the amount

Ardrey, President of the bank.
Simultaneously, Mr. Ardrey an-

Assistant

is

'
*

•

will be added to the bank's capital

An

of

merger

Anzona> at Phoenix, Ariz, with
of $8,000 000 be-

nun

5*;

Proceeds

as

the

also

U.

Merchants

Public Utility Group, was
elected Vice-President, on Feb. 23
it
was
announced
by Alex H;

Cooper,

offering,

stockholders.

*

•

It

page 639.

York)

C.

of

$31,250 having increased

Currency

/.

*

Tait,

Trust

Trill

'■

14

*
a

1.

The

New

&

position Mr.
McCord will represent the bank's
4ntoroc4c
in
TViq
TVTi^rUo
Cnn + L
interests
in, the Middle
South.
Other

tive ds of Feb

Inc'
Trust

Columbia

it from $1,187,500.

Louisville;
recently was a

until

Folger

Co

and

announced

without
to

panding

addition to it by a stock divi¬

an

43

by Albert C;
President.
Mr/

Jr.,

&

itv

*

Feb.: 28

on

Simmonds,
McCord

en-

with

compared

*

$

nounced

Ribbs

Secu

from/the J sale, it

Effective Jan. 13 the Canal Na¬

-

of

at

23,
*

been

Vice-President
New

Jan.

has

amount

$600,000 to $900,000
by the sale of $300,000

stock.

Merchants

bM K.1

the

participation
icipation

of that

reported

has

a

Bank

First National

$600,000 previously. >

sis

The

of the

Olean, N. Y. by a stock

new

Chicago

of

from $75 000 f on to <rqo nun

r

$159,009 made to

of

San

*

fective

of

dividend

'

appointed

shares

from

of Feb. 3

of

dividend of $15,000,000

Trust

111

additional

writers

raised
as

A

A stock

1,333%'shares
capital stock to the under-

of its

of

Comptroller of the Currency,
who indicates that the capital was

issue

our

capital

Bank

page 639.
*

Feb.

in

the

U. S.

-/'Hartley G. Banks, President of
the { Columbia Savings Bank, of
increase- its service to customers Columbia, Mo., has been elected
and to enaole it to obtain a
larger *° the board of directors of the

Bank

oL.er

*

sell'an

noted

in

Antonio, Texas is reported by tne

17

larged the capital to $750,000, ef¬

($289,768,733);
securities,
532,188,639 Swiss Francs ($124,198,060). As of Dec. 31, 1955, the
bank had total deposits oE 2,784,261,000 Swiss Francs ($649,769,194), versus 2,638,276,069 Swiss
Francs ($615,700,364) a year agi.
*

capital

record

Reripath ' and

Company also

"

An addition of

•

-

•:

.*

customers," 1,203,094,and

issue of,

our,

Feb. 23, page 956.

Francs

Government

ise
likewise appeared in

of Feb. 2,

each

SonsAuchtaclos/

~

>

Nolan-W.- B

with

of

Feb.

on

increase

Groos National

lV.~The"of£eringTnto th°e~t National STf
Natfonal Bank or
and
Company
J ?
first

American-.

776,835 Swiss Francs at the end of
1954; cash amounted to 361,359,-

;

held

for

capital

was

The warrants expire at 3
p.m.f

Dec.

compared

inciease

ing underwritten by a group of
investment firms headed bv Alex-

com-

31, 1954 figure of 24,326,243 mon stock to $9,748,000 by the sale;
Francs-($5,677,068). Total of 119,600 additional shares, beassets climbed to a new high of
came effective Feb. ",16.:
A ref-i
3,148,932,805 Swiss Francs ($734,- erence to the enlarged •:capital;

share

one

Swiss

873,406),

$43.50

share for 114,666% shares of
its $10 par value
capital stock at
of

An

the

by the sale of $100,000 of new
stock, making its capital $1,400,0C0
at tne latest date. The previous

Washington,

is offering to its stockhoid-

rate

the

enlarged

and

per

the

dividend

-

Security
of

warrants to subscribe at

ers

capitalizations

Swiss Bank Corporation, SwJz-

*

Company

D. C.,

new

*

.'American

Trust

consolidations

10)
increased
its
capital
$1,200,000 to $1,300,000 by a
stock dividend of $100,000, further
from

.

-

(Jon.

Assistant Treasurer.

an

19

Roman & Johnson

The Commercial and Financial Chronicie
20

.

.

Thursday, March 1, 1956

.

(1068)

Harper's Magazine last year, auto¬

Consumption

Investment?

or

so

the

from

of

point

the

Paul

purchasing

the
cost
a balance of
payments deficit. The opinion of
experts (and pseudo-experts) difleading to/a
of living and to

rise

power,

fered

however,

Head Committees

fice

*

y

whether this inflation
about

mainly

by

spending

sumer

brought

was

by

excessive

capital investment.
The

j

view

latter

con-

excessive
or

strongly

was

canvassed by

all Keynesian economists. They appear to have sueceeded
in
convincing the new
Chancellor of the Exchequer, Mr.
Macmillan, that the difficulties of
1955

almost entirely the re-

were

suit

of

the

increase

industrial

of

capital expenditure by some 18%
during that year. Yet in view of
the fact

in

that

the propor-

1954

day per head.

/i

critics have failed

tion

that

is

to

than

Socialist

the

mination,

came
were

from the affiliates. V

Earl

K.

values,

Oliver J. Troster

Bassett

the

•

burden

of

It

true

consumption

tions

the

instalment

on

total

sum

negligible
the

selling.

these

of

measures

compared with that
directed

measures

expenditure

capital

But

against

the Gov-

by

nationalized

ernment, the

indus-

tries, the local authorities and by
private firms. Mr. Macmillan, like
all his predecessors at the Treasury,

found it easier to cut capital

expenditure, and to force others
to cut capital expenditure, than to
attack excessive
ing.

Needless

consumer

to

capital expenditure react
incomes

sumer

in

spend-

cuts

say,

on

due

in

con-

course,

credit

Of

a

curtail-

mitigation of

a

the rise in prices, and an improvement of the balance of payments,
that

result

through

direct

spending it

could

be

in

cuts

would

achieved

But

/

~

,

mi^e and a member of the Ex-

have

the* ad-

them

for the

sake

of

remedying

the immediate situation.

The

Government

criticized

for

disinflationary

was

already

spent would be
firm ordered £1 million worth of machine tools, a
credit squeeze or a ; decline in
consumer demand might make it
appear profitable to cancel part
of the order, to the extent to

wasted. If

which the

thing

they

work

on

an

of

order for the unfinished
an

£1

million.

for

automatic

From the




is

a

last

curtail-

new

equipment

of

production

it

drastic
As

Mr.

pointed

it

is

disinflationary
Peter

out

disadvan-

inflation

to

in

should

resort

to

measures.

Drucker
an

ith

rightly

article

in

the

in

much

so

banks for financing the war;

has

high.

a

triced at $49 50

were

kept

equity

quence

the

low,

and

offering
scribed

aiiicklv

was

and

completion

conse¬

a

over

up

later

of, the

years

charge-

W.

R.

mill

&

oversub

Co.; Shearson, Ham-

Co.;

& Co.; Ira
E. Pollock &

Freeman

Co., Inc.; McMaster Hutchinson &
Co.; Mullaney, Wells & Co.; and
S. Yantis & Co. Inc.

$2.15

$4.73

128.34

123.95

11.58

19.16

170

17.53

22.27

2.70

3.53

26

1.72

3.62

24% r; 49 y8

$25.06

$58.83

$35.06

York

126.83

131.22

255.17

Manhattan.

26.34

21.60

43.87

New

Chase

Chemical

Empire
First

*

Corn

17.31

17.47

41.77

107.20

Ex.

Trust

100.91

140.93

.

24.30

3J.73

.

65 »/4

38%

248

52

.,7.43' -14.71->r; 49.%

40.02

177-,:..

'

J

20.10

41%

4.25-

3.48

^

64%

21,67.

4T.77

/ 1.22

54.25

53.60

81.12

26.87

27.52

4.59

4.87

68

80%

27.42

51.48

21.47

24.06

3.33

3.83

52%

50%

21.51

25.29

2 .81

3.78

1.71

2.20

23%

31%

22.48

«,

i

"

43

14%

39.29

25.63

28.18

1.36

3.22

247.23

107.83

8.29

21.67

Trust

34.52

33.55

64.83

30.31

31.28

4.59

4.90

47 Ys

72

States Trust

58.12

58.21

65.60

7.48

7.39

2.89

4.99

63%

76%

York

United

24.46

1932

30.01

Bank

Trust__,

Irving

*

1933-55

40.55

City *

Natl.

Guaranty Trust
Hanover

1955

$33.77

$23.77

of

—Dec. 31—

1955

1932-55

Bank

Market Price

1932

1955

Trust

Operating

—->

•—Change—— —Earnings—

1933

J.P.Morgan

This

&

Haupt & Co.; Wm.

-Book Value

New

Co.; Baxter,

Pressprich &

Williams

F.

-Dec. 31-

'Includes

the books closed,

and

as

built

was

depression

/to cost-not.. less than $23,151,130.
•"
Associated in the offering are:

1932

120,000'

share

a

by box,, hopper and flat cars and
stainless /steel jcOaches estimated

offs.

Thf

p

.

Commission.
The total issue is to be secured
Commerce

state

dividends

Generally,

of the Inter¬

the authorization

to

and

put bank earnings at an all-

time

.

510,000, are priced to yield 4y4%
on
all maturities.
Issuance and

the

present boom condition when
loan, volume has /expanded and

1957

/.;•:'./•*

sale of the certificates are subject

collapse,

market

1,

March

These

the war, during which the gov¬
ernment relied so heavily on the

Tr._

tData

11.11

13.66

& Co.t

139.40

Manufacturers

R

to 1971,
7'/?':■ ;
certificates, first instal¬
ment of a proposed issue of $18,annually

equity that had suffered

Bankers

Lpipnnf

f
r

City Bank Farmers Trust Co.

for J. P.

151

312

Data not strictly comparable.

Morgan & Co. covers only

Stock not publicly owned

1942-1955.

prior to 1941.

Part of the net proceeds, it is
anticipated,
Trane

for

will

be

utilized

by

capital expenditures in

i

-4.

-+u

ponnectlon

-

i-

^

Wlth lts continuing

NOTE—Adjustments

made

in

book

values

for

all

capital

(exercise

changes

of

rights assumed); earnings adjusted for stock dividends and split-ups.
NOTE—Bankers Trust,

reflecting mergers
pay-off.

Corn on pro forma basis

Chase Manhattan and Chemical

in each

case.

National City-First National consolidation was

a

improvement and expansion program.

The balance of the proceeds

will be added

to

,,

.

..

Upon completion of the offering
0UIsian(fing capitalization of the
and its Canadian sub-

company

New

Study

NATIONAL

on

sidiary will consist of

$5,950,000

and

of INDIA, LIMITED

Christiana

Bankers

debt

shares of common stock,

Consolidated

income

$2.88

year

to

sales

$54,061,937

$3,452,753,

share

a

common

to

on

the

in

1955

and

equal

net

to

1,200,000

shares outstanding at the

end.

to

Kenya

Securities Co.

the

Government

Office:

West

End

26

London,
Bulletin

on

Request

13,

Laird, Bissell & Meeds
American

Stock

Exchange

120 BROADWAY, NEW YORK 5, N.

Telephone: BArclay

Y.

7-3500

Bell Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading Dept.)

Specialists in Bank Stock*

C. 2.
Branch:

Square, S. W. 1.

India,

Pakistan,

Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda,

Zanzibar, and Somali-

land

Members New York Stock Exchange
Members

in

E.

in

Uganda

Bishopsgate,

(London)

St. James's

Branches

and

Colony

Head

1,320,000

amounted

BANK

working capital,

...

TT

long-term

point of view of auto-

necessary

very

will

•

make

not

half

will now be placed during the
duration
of
the
disinflationary

that

wanted

What

probably happen is that few

orders

matic

The

of

automatic transfer machine

tageous

were

number

impossible to expect the engineering work to accept cancelation of

on

however.

a

tools has not yet been
On the other hand, it is

its

the official policy

consistent,

a

drive

investment. The Socialist critics of

build up

Equip. Tr. Clfs.

Halsey,

inclusive.

accommodation.

loan

Sells Trane Shares
offering

./

periods enabled them to

after

Public

concentrating
mainly

pur-

,p™gress durmg the

drive;

sharply

Wilson, Union Securities Corpora-

*/. :/

.

;

Stuart & Co., Inc. and
associates yesterday i(Feb. 29) of¬
fered
$7,230,000
of
Boston
&
Maine RR., series 1 4Mz% equip¬
ment trust certificates, maturing

part of the in¬

two

„

amount

Offers
v

much curtailed de¬

a

for

mand

''

H. Warren Wilson

,

consumer-costing

vantage of maintaining investment
programs .instead
of
sacrificing

that

values.

current

Halsey, Stuart Group

the banks had to
abnormally low inter¬

period with

It is true, owing to the peculiar
•
technological character of auto- snares of common stock of.The
mation there will be strong in- Tra+ne c°mpany, a leading manu''ducementt for industrial firms to ;f
,ar^r;,
conditioning,
complete
the
project
already '
f a
.special
initiated, because otherwise the f..Q0p
a ^aPsfer equipment,

started.

they lead to

demand,

for

in

figures, they

it

rates; and, for a considerable

est

last year or tw0'

effect that

If

facilities

~

machine

of

with-

on

well

cases

of published

excellent

offer

for

years

with

work

SS&M *£ Smith, Barney Group

Indeed, it is mmnly through that
ment

The

almost. all

in

excess

.

values.

good

tervening

drawal of tax concession on new tion, has been appointed a meminvestment> and the curtailment ber of the Executive Committee.

the^re'inforcement oT'restric-

by

of

is

in-

on

aimed at by the reduction of

was

is

fell

measures

I
L
vestment.

dis-

Macmillan's

Mr

inflationarv

projects.

with

For the greater

seems

automation

depression,

were

/

■

-

ties

duced, security holdings, includ¬
ing governments, much deflated,
and interest rates low. And they

tend to

spent

attractive
investor

results.

utilizing

opportunity to put fat

every

the stocks
holders,
and with loan volume sharply re¬

';ecutive and Information Comon capital investment was appre-*
The Government s policy of mittees of the National Associa—
ciably lower in Britain than in concentrating mainly on cutting tion of Securities Dealers,, Inc.
any
other
Western/European capital investment is .to be; de-.-Earl K. Bassett, W. E. Hutton &
country or in the United States Plor.ed from the point of-, view of Co., New York :City,: was named
to indicate that an-increasefuture ,l]OTOspects.-• In ^particular, 'Chairman
of the Finance Comby ^8%
if adythfng ihSe^ Britisli'industries" will find it dif- mittee and a member of the-Exquate.
'
/
ficult to proceed with their ecutive Committee. H. Warren
tion of the national income

be

been

.ih.ei#..fe9».fV^swith true e?ui"

out of the hands of weak

proposed would

aggravate the inflation instead of mitigating it.
' '

to

were

securities

have

banks

The

should have been in the depth of

"

spending. All /

consumer

the remedies they

?■

include

not

do

,

/

invest-

accompanying table gives
the changes in equity from 1932
and from 1933, to 1955, without
benefit of any of the large re¬
serve.
Noteworthy also are the
sizable increases in earnings for
the 1932-1955 span, figures that

; ~

>

they are today in

as

The

bank' stock

ever

conservative

the

//

.v

if

Therefore,

:

speakers

both

of

small part of which was

than

most banks' balance sheets.

Several of them showed

years, no

nor were general reserves
security valuation reserves as

large

the

of

Irving $10,000,None of this was present

1932,

or

rather than

portion

have

in bank condition statements back
in

charge-offs of upward of a quar¬
ter
billion
over
the
depression

the

proportion

banking

business.

'

ment and

in the affiliates

debts

$8,000,000;

000, etc.

they

the

could

For example,

bad

for

reserves

over

did, for in most cases
charge-offs that be¬
necessary as values tumbled

in

the economic, debate argued in favor of an increase in
during

was

heavy

will, decided that

there is both free will and deter-

bank

security companies the ma¬
jor banks would have weathered
the worst of the depression better
the

total

reserve

large totals.
Chase Manhattan has over $76,000,000
in
this
reserve
alone;
Bankers $13,000,000; Morgan $6,000,000; First National City $50,000,000; Guaranty $12,000,000;
Manufacturers $32,000,000; Han¬

these

ecclesiastics who, when confronted //
with ihe dilemma of determination versus free

our

the

been built up to very

devastating depressions in
history.
A number of ' the

,

the Medieval

Like

it.

the

of the

one

sheets,

of

portions
of
in most
and, essentially,
appear

be added to equity.

closure.

economy

reserves

much

York City, has
larger institutions had set up se¬
been appointed/Chairman of the
curity affiliates, for at that time
National Uniform Practice Cornthese appendages were permitted
under the banking laws. Without

g jdger & Co., New

realize

cannot eat one's cake

one

invest

and

,

,

Opposi-

the

when

and

most
w

the

that the

only part-way through

Troster,

Troster,

OAiyervJ.

after

recalled

be

small

only

balance

Roosevelt Administration took of¬

Of N. A. S. D.

those whose
incomes are under £ 2,000,/the
latters' share would be two pence
what the Government's

But

built-up

holiday occurred at the time the

among

-

will

It

£2,000/were to be

over ■

comes

.distributed

a
question /

the

on

in

months

some

there disillusioning a recent statement
has been an of the Chancellor of the Exchequer
excess
of in which he said that if all in-

Einzig

a

progress

years

Dr.

as

generally realized that
group the leading New York

City bank stocks are today, from
of automa¬
the standpoint of equity,
better
owing to ex¬
values than they were either at
cessive inflation, it should become
Dec. 31, 1932, just prior to the
necessary to interrupt that con¬
bank holiday, or at Dec. 31, 1933,
tinuous flow. V
of

Bank Stocks

—

It is not

tion in Britain to at,

ment of consumption, apart from
cutting down the spending power
Feb. 20 and 21Jl&w^of the rich.. In this latter respect
the
Government^ nobody during the debate pointed
dilemma }iris- out /the elementary fact that the«
ing from-the spendings of tens of "thousands of
conflicting rich,//or
even, of
hundreds of
claims of con-, thousands of moderately rich, on
sumption and the primary and secondary necesc
a
p i t a' X sities whose prices affect the cost
expenditure, of living, are negligible compared
One of Phe with the. spendings of the tens of
few points on;millions Vof Uhe r lower-income
which t h e r e groups. /Anybody
who seriously
was
universal believed - that
the v inflationary
a g r e e m e tiii. situation in Britain could be corwas that durrected by cutting down the spendi n g recent ing of the rich must have found

to

This Week

that the output cannot

temporary fall in demand. It is

view

LONDON, Eng.—The two days'
in the House of

attention

By ARTHUR B. WALLACE-

are

long

easily reduced in response to

economic debate
Commons on

works

relatively

a

unfortunate

It is

jeopardize Britain's automation projects.

for

period

.

Production sched¬

automated

for

ules

paradoxical that inflation should prompt measures
preventing additional production of goods.

found

sense.

fixed

a

capital expenditures were lower in Britain than in other
developed countries; (2) Socialists propose increasing both
investments and consumption spending, and (3) cutting capital
investments will

of

economic

be

Noting that investments bore the brunt of Britain s recent
anti-inflation measures, Dr. Einzig points out: (1) industrial
V

Bank and Insurance Stocks

production not only in a
technological sense but also in an
flow

PAUL EINZIG

By

<T

continuous

necessitates *

mation

Anti-Inflation Paths:

Protectorate.

Authorized

Paid-Up
Reserve

Capital
Capital

£4.562,500
£2,851,562

Fund

£3,104,687

The Bank conducts every

banking

and

exchange

Trusteeships and
also

description of
business.

Executorships

undertaken

'

'

.

Volume

183

•

•,»■■•'

'.• ■

Number 5512

.

.

.

*"^ >•••'.

*■*

*.•«♦;

,

S„• i•* './I','/,'"' n»,iT

»»•

The Commercial and Financial
Chronicle

Behind

the

Ships that Set the Pace...

Master's Touch

a

World's fastest jet boat, Donald

bird—216 miles

an

hour

.

(1069)

.

Campbell's Blue¬

The
one

.

World's fastest propeller-driven
boat, Slo-Mo-Shun
IV—178 miles an hour
...

race

Winners, from the

Mauretania to the S. S. United States

..

common—socony

.

the

are
men

who

know
for its

SOCONY

jr

X-

marine

machinery look to

protection.

*

your

Two-fifths of the world's freighters




rec¬

at stake—when schedules must be met—

*

★

Wherever there's progress in motion—in your car,

..

LEADER

all have

Good reason! When the chips are down—when

Maiden voyage of the world's first
atomic-powered

submarine

seas

mobil's master touch

in lubrication.

socony mobil

.

Oil

horses and work horses of the

thing in

ords

All the Atlantic Blue Ribbon

in

IN

.

.

MOBIL

factory,

your

look to the leader

.

OIL

LUBRICATION

FOR

farm

or your

home—you, too,

can

for lubrication.

COM PAN Y,
NEARLY

A

I N C.

CENTURY

21

Financial Chronicle

The Commercial and
22

.

.

Thursday, March 1, 1956

.

(1070)

Elected Director
John

H. Lux, President of
Kaveg Industries, Inc., announced
the election of W. Joseph Straus
Dr.

director

as

a

of

the

Our

:

Straus,

adviser

tions

to

Chairman

of

well

American
Secu riti

as
es

also

of

invest¬

ment

firm,
of American
Machine
Metals, Inc., and of a number

will be

&
of

more

plastic

Mr.

in

Harrison

President

was

-

formerly Vice-

Sales Manager for

and

First Florida Investors, Inc.

Henry-Seay Branch
LUBBOCK, Texas — HenrySeay
& Black have
opened a
branch office in the Gibson Build¬

East

other form of investment.

some

;

-

*

'

obligations,

government

branch

office

at

far

as

inflation pattern

The

about

and

of

the

tion.

v

particularly

the

as

many

investors

chine

one-fifth

about

when

■

as

Central

area

is

an

but not

rate of 7%

age

per

annum

com¬

grown

There is

question but what further deterioration
the business picture will bring with it

no

from

$88 million
gain of 41%;

to

$126

in some segments of
million, a
the in¬
changes in monetary policies. Accordingly, because of tne chang- ; crease for electric revenues Wc.s
ing attitude which is evident in the government market, there > 38% and for gas 91%.
are
reports now of a growing demand appearing for the most
Pro forma consolidated capital¬
distant obligations because not a few investors look
upon these
ization as of Dec. 31, after adjust¬
securities as an attractive medium for the
placing of funds, i- - ment-for the current issues of $10
The 3s of 1995, according to reports, is still a
very well be¬
million preferred stock and about
haved issue in spite of what is termed a
fairly sizable amount of * $11 million common stock, is ap¬
profit taking. It is indicated that some rather Targe sized switches r
proximately as follows:
"
have been made from the longest government bond into selected
Per Cent
Millions
issues of the 2y2s, with the 1965/1970s and the 1967/1972s
being
$173
43%
Long-Term Debt —*
among the favored replacements.
.90
Preferred Stock
-22 -,
r
"
'T'1''
'■■.iff;'-"?; Common Stock Equity

Opens

SCRANTON, Pa. —Stephen S.
Huber is conducting a securities
business
from
offices
at
601

•

Quincy Avenue. Mr, Huber, was
previously With J. S. Hope & Co.

would

crease

in

permit

;

Mortgage Market. Easing

U. S. TREASURY

V

According to
ease, with more

:

reports, the mortgage market .is beginning to
money being made available to the building
business. The changes in terms which were made not so
long ago
by government agencies in the mortgage field will no doubt have

PUBLIC REVENUE

SECURITIES

The

ease

in

the

r

Midwestern

Company,

Chicago Analysts

Road to conduct a'securities busi¬

Partners

ness.

Charles

are

Adams

Room

of

mission to construct
line

from

the

there

Midland

-•

S.

Hotel, will be addressed by J.
Dewey, Jr.,-Cummins Catherwood, Carlton Ward, Jr., President of the
Kenneth L. Allen> Allah B. Grady, Vitro Corporation. Mr. Ward will
Clinton

Davidson, Clinton David¬ speak

son, Jr.

atomic energy and the
and will com¬

on

Vitro

Form Burke & Co.
Burke- &

Co.

with
New

8c Co.

offices
York

INCORPORATED

at

been

Wall

BROAD

ST., NEW YORK 5

William

WHitehall 3-1200

in

field

the

at home
of

and

atomic

and some of the invest¬
implications of these de¬
velopments.
*'

Street,

ment

i

,

City

to

resume

A.

Burke*'and

231 So. La Salle St.

45 Milk St

Schwadron. Both

were

CHICACO 4

BOSTON f

the former firm

of

ST 2-94Q0

HA 6-6461

Mr.




progress

energy

formed

52

investment business. Partners
15

on

abroad

has
5

Corporation

ment

<

J.

the

partners in

■

Davis, Skaggs Branch
:

-SAN

JOSE,

Calif.

—

also

be

favorable.

In

a

net

favorable.

appears
Share

earnings last

year

of

the

in

1952 and 85c

two

previous

years, $1.06
in 1951. Accord¬

ing to Dow Jones, President King
recently estimated earnings of 37c
for the first quarter of 1956

pared with 34c in the

&

Co.

Schwadron has recently been

with

Eastern

Securities, Inc.

Skaggs

&

Co.

have

opened

branch office here under the
rection

of

V.

N.

Lundy.

a

com¬

period
last year, despite the planned sale

of additional stock.

the

calendar

pected
same

5%

to

be at
for

as

Mr.

outlook

for

Earnings for
1956

least

are

ex¬

$1.16—The

1955—absorbing the

increase

shares.

year

same

in

the

number

of

King stated that "the
continued

excelfent in the
has

growth

been

is

ahead."

years

quoted

re¬

cently around 17y2, paying 90c to

......

period the

yield 5.1%, and selling at about
15 times

*

'

'

rive

earnings.
1

*

"f_

#

With Irving Lundborg

(Special to the financial chronicle)

t

present issue of same $21 million Exchanges. Mr. De Graca was
preferred and common s oak formerly with Blyth & Co., Inc.;
will be used principally to retire Mr.
Hoilenbeck
and
Mr.
Payne
$19 million bank debt.
were Bwith Reynolds & Co.
*
Expenditures for 1957 are es'imated at $39 million and in 1958
v
New Quail Branches
atf$38 million, which funis'wi 1'

again be obtained about half internally and half through sale of
securities, plus interim bank loans.
The company does not anticipate

DAVENPORT,
_

Co7uicl
„

'

'

Iowa —Quail &

members

of

the

Netv

York ..Stock Exchange, have

equity financing until opened an office at 274 Herbert
perhaps I960. The equity Street, Alton, 111., with William J.
ratio, currently around 34.6% -pi o Fisher ag representative, and at
forma, is not expected to drop be-r. *
low 33% during 1957-58.
1750 Overview Court, Dubuque,
more
or

-

Burke

were

$1.16 compared with $1.10 in each

The- stock

100%

increase of a'oo

general,

therefore, the outlook for further
rapid growth in the gas division

in

-.1959

Davis,

was

border

through Minnesota and Wis¬
consin, which if granted would

saK FRANCISCO, Calif—Peter
$253 million in
plant account. D.
Costigan, Edward C. Cronwall,
Construct.on
requirements
for Jr
Richard F De0raca, Fred E
1956
approximate
$40
mllion, Hoilenbeck and Rollo H.
Payne
about
halt
of
which
is
bting have been added tQ the staf/ of
raised thi ough sale of bonds later
irving Lundborg & Co., 310 Santhis year (some snort-term bank some
street, members of the New
loans may also be utilized). The York
and
San
Francisco Stock

any

are

Jay

,

per¬

major pipe

a

Canadian

down

35

system h's
spent about* $327 million on is
construction program, whie $37
million property was retire?, and

to Hear

the

_

During the postwar

not dissimilar conditions will prevail in the entire
money market
in the future.

.

^

..

.

a new

Tennessee Gas Trans¬

mission, has requested FPC

Northern States Power

MADISON, N. J.—Mineral Proj¬
CHICAGO, 111.—The Investment
ects Co., Ltd.
has been formed Analysts Society of Chicago at
With offices at 55 Green Village their
meeting on March 1 at the

Aubrey G. Lanstokt

'

home building with* the parsing of
mortgage market might be the sign that

Form Mineral Projects

139

__

$402

favorable influence upon

a

time.

(14,089,328 £hs.)

in¬

some

supplies.

*

and

total

applied for extensions, etc.

which

affiliate of

pounded > in the past 25 years.
System revenues since 1951 have

us.

have

Gas Transmission!

outstandingly stable
as a "rapid growth"
section, Northern State Power's
kwh sales have gained at an aver-

market is still being kept on the tight side be¬
authorities have seen fit to have it that way.

money

ma¬

ordnsnce

p s,

While the West

But

.

o

making
such products as control devices,
pressure-sensitized tapes,
airconditioning units, digital com¬
puters, hearing aids, etc.
noted

.

h

also "research" industries

the

started to lose its momentum.
.

s

-

.

of

transmission

major

A

pla ts,
rubber tire production and refrig¬
erator manufacturing.
There are

discount 2l/z%

concerned

were

Other industries include

ahead of

-

408

STATE, MUNICIPAL

load.

system

large number of small
hydro plants which last year conare a

output.

roughly

Nonetheless, it is indicated that certain of the economic barom¬
eters are beginning to show signs of some uncertain weather
being

Chiampa.

S. S. Huber

There

tributed

the monetary

cause

Warren Street under the manage¬
ment of Vincent M.

of

Dakota and Wisconsin. Of

of further important hardening of interest rates was pretty much

dissipated

New Purcell Office

a

North Dakota

one-third

peo¬

one-fifth

one-tenth the population of Sou h

The fear of inflation, which had been so very prominent
past, seems to have gone the way of all flesh and, as a
result, funds are now finding their way into selected long-term
maturities of government securities. It is reported that lhe fear

Money Tightness Continues

opened

in

those

the

in

of Ben Ferson.

HUDSON, N. Y. — Edward A.
Purcell & Co., members of the
3Nfew York Stock Exchange, have

Minnesota,

in

area

^

heating, telephone
Electric utility service

is provided to about half the

ple

re¬

from

and water.

Despite the attractiveness of Treasury bills, there is appar¬
ently a growing amount of purchases being made in t.ie more

opened a branch at 1117
Vine Street, under the di¬

rection

tions, 12^% from gas, and the

issues.

of the New York Stock Exchange,
have

tially, and Btu per kwh will prob¬
ably drop below T3,000 this year.
The relatively new "Black Dog"
Plant at Minneapolis, with 300,000
capability, is now carrying over

of system revenues
obtained from electric opera¬

are

86%

...

haven in

a

Krensky Office

VERNON, Ohio — Arthur
& Co., Inc., members

MT.

active, when the refunding terms are known.

ready

.

distant

M. Krensky

from the

be

November).

two million people in the service system is now besing developed to
area, about half live in Minneap- tie the company in with the Iowa
that, even though the liquidity angle is about
olis and St. Paul and their sub¬ and Wisconsin power pools.
as important as ever to the institutions that have been moving out;/
The system buys its natural gas
urbs, about one-quarter in cities
maturities through switches, there appears to be no great amount
and
villages of >5,000 to 60,000 supply from Northern Natural Gas
of uneasiness because maturity dates have been extended. JSVi.-^V'
population, and about one-fourth under 15-year contracts signed
-dently, it is the opinion of most of these "switchers" that the pre-,
It also sells a small
in smaller Towns and ru~al areas. last fall.
vailing values for nearly all government securities does not in-. !
The territory served produces a amount of LPG and manufactured
volve a great deal of market price or yield concern to them.
great variety of agricultural prod¬ gas (about 5% of the total). Re¬
ucts, and also has widely diver i- cent developments have improved
Inflation Fears Waning
fied commercial and light indus¬ chances that the company will ob¬
The return which is available in Treasury bills continues to
trial
activities. % A% number
of tain further natural gas supplies,
attract sizable sums of money, especially from corporations. There.
industries are related to the farm to substitute for artificial gas and
is also important money coming into this selfsame security from
economy of the area, such as flour to
extend service to additional
private pension funds and, in some instances, private trust ad- , milling, meat packing, soy-bean areas. Northern iNatural Gas and
counts, as well as monies of individuals that would ordinari.y find
processing, and lihseed oil extrac¬ Michigan-Wisconjsin Pipe Line

ing under the direction of R. R.
Gallaway.

New

next

It is indicated

securities business.

a

1949-53 and three 100,1954-56 (the third

for operation
With these new
units the system has been able to
increase
its
efficiency substan¬
should

parent company operations,
the Wisconsin subsid¬

from

mainder

Own Investment Office

to engage

units were in¬

Three 60,000 kw
stalled in

million.

$126

000 kw units in

About

past with no particular trend in mind, but this seems to have
given away toj swops that appear to have the purpose of improving
income and .this brings about a lengthening of the due date.

ORLANDO, Fla.-r-John H. Har¬
rison has opened
offices in--the
Florida National Bank Building

of

revenues,

other subsidiaries.

important part of the business which is being done in
the government market is the result of switches or swops.
It is
the opinion of many money market specialists that the trend of
these exchanges is still toward the extending of maturities. To be
sure, there has been a certain amount of switching done in the

John H. Harrison Opens

has now been raised to
around 25%, giving the company
a
comfortable operating position.

largest electric utility system

iary, and less than 1%

A very

materials.

raw

margin of reserve ca¬

pacity

14%

Extension of Maturities Continues

companies.
Haveg Industries,
Inc.
(Mar.shallton, Del. and West Warren,
Mass.) manufactures and fabri¬
cates
chemical equipment, cor¬
rosion resistant pipes, ducts and
other

load.

from

been,

ing interest developing for the higher coupon more distant gov¬
ernment bonds.
It is expected that the intermediate-term issues

Joseph Straus

W.

banking

pace

peak

in

increase

Over 85% of revenues are derived

is much the same as
with the largest demand still in the short-term
Treasury obligations. There are, however, reports of an: expand¬
has

it

a

director

■

a

the

Hence

faster

somewhat

the

Northern States Power of
(together with several
smaller
subsidiaries), constitute

nual

The pattern of the government market

,

Corporation,

at

than

in the West Central area, with an¬

attention as far

being given more than a passing amount of
the money market is concerned.

are

ities

Power

Wisconsin
the

of economic

the trend

as

>

The refunding operation of the Treasury, as
conditions, are also factors which

government issues.

of

the

stocks

mon

Com¬

States

iary,

the government market, whereas a decline in prices of com¬
seems to have a favorable effect upon quotations of

upon

j 11 i am
RosenwalU,

pany

in the equity market still has a dampening effect

uptrend

(Minnesota) and its subsid¬

-Northern

being contained within the recently established ranges.

are

The

W

Board

Northern States Power Company

government
obliga¬

market, which means that prices and yields of Treasury

financial

that

Utility Securities
By OWEN ELY

backing and filling process continues in the

The

'

is

Public

Governments

By JOHN X. CHIPPENDALE, JR.

economist and
a

on

com¬

pany.

Mr.

Reporter

di¬

has been engaged I°wa» with Hendrix
its generating fa:il- representative.

The company

in

building

up

,

„

w

-

Pichard as

Volume

183

Number 5512

.

.

.

The Commercial and Financial Chronicle

(1071)

23

"h

y

,

i

(

1,

■I

'

X"

U

Il

.

t;

.

.

AND AMERICA

In 1955
more,

ful

more
V

more

and earned

pursuits than

year*
)

country produced more, sold

our

built

PROSPERS

for peace¬

before in

ever

,

More people held

more

and acquired

money

more

a.

single

jobs, made
necessities

more

x

and conveniences for better
a

year

of economic

living. It

progress

was
U,

for the indi¬

A

vidual,/for business and industry and for
I •"» '

'to.

:

:

■

'

J

•*'

.

the nation.

V.H t 1 HjkV

Quietly behind the

CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS

many

&

and

Marketable Securities

-

...

make

$ 85,724,980

$ 75,412,455

and

Receivables:
Retail

motor

vehicle installment

«;

£

Direct and

38,290,322

nomic upsurge

48,481,888

38,289,138

Commercial and other receivables

35,362,536

27,297,874

$815,225,901

$563,904,692

49,347,481

34,493,813

18,833,110

13,604,172

$747,045,310

$515,806,707

12,444,059

Less: Unearned discounts
Reserve for losses

4

Total receivables, net
Other Assets

8,832,220

.

-.Associates.is

one

of the nation's oldest,

largest and strongest providers of credit—
work in the

$600,051,382

economy.

LIABILITIES

ness

Notes Payable, short-term
Term Notes due within

one

Common Stock Dividend

$424,290,800
year.

,

financing, but

36,270,000

1,875,283

....

.

30,156,749

25,689,566

.

Surplus

ing—the kind of financing that keeps
America great.
9.;

31,254,720

47,434,770

$845,214,349

...

.

lj^ billion

12,500,000

31,254,720

..

over

41,500,000

22,500,000
59,190,414

Common Stock

.

provided

107,735,000

60,500,000

.

>

Subordinated Long-term Notes.
Preferred Stock

33,530,390

142,565,000

Unearned Insurance Premiums

Long-Term Notes.

Associates alone

and

Reserves

still

dollars of constructive, conservative financ¬

1,562,736

38,161,383

.

we serve

financing of busi¬

industry and personal financing of

payable

January 3, 1956
Accounts Payable, Accruals

and

American families and individuals. In 1955,

$262,574,200

34,720,000

.

and

move

Our largest field is

further with commercial
#•

eco¬

throughout the last half

of dollars that roll and flow and

•

automotive

$845,214,349

i

of the big

one

century.

personal installment loans

'<

that helped to

moving forces behind America's great

vehicle short-term

V

v
■; ~

-

$460,027,358

loans.

:

financing—has been

$649,982,667

motor

money

possible this unprecedented growth

81,398,810

Wholesale

I:

credit in its

prosperity. Consumer credit—install¬

ment

receivables

1

scenes was

applications, providing the massive,

continuing flow of

Dec. 31, 1955 Dec. 31, 1954
Cash

/V

$600,051,382

p.

n
1

,,

Year Ended

Dec. 31, 1955

"

',

f

'

;

i
/

:

,

r

•«&

•

a

X

Commercial and*Installment

*

'

I

CJiates

CONDENSED CONSOLIDATED INCOME STATEMENTS
:

*.

rf

*Al i

Financing

,A

r ^ /,•

Dec. 31, 1954

m

Discount, interest, premiums and other
•

income..

Operating
k

$109,907,061

tax

tax

.......

Net income...

common

stock

earnings
after

ferred dividends/




63,719,419

$ 36,354,135

17,350,000

14,800,000
$ 15,679,790

I

ASSOCIATES INVESTMENT COMPANY

$ 30,479,790

$ 19,004,135

Provision for Federal income

net

$ 94,199,209

73,552,926

expenses

Net income before Federal income

Consolidated

;

share of
payment of pre¬

*****

ASSOCIATES DISCOUNT CORPORATION
and Other Subsidiaries

SOUTH BEND, INDIANA

*

*

per

Copies of the 1955 Annual Report
$5.86

•

$4.85

are

available

on

request

fv
%>-y \n.

.

24

Continued from page

liquids under extreme conditions
temperatures, pressures,

With perhaps a 11,000 ton
cruiser ahead of them all! All of

order.

and into construction—and

atomic

But

bombs,

for

energy

the really gross uses

still leaves to

and

of nucleonics
the numer¬

us

military airplanes, and have ac¬ ous (and increasing) smaller ap¬
tually
been
flown
in
planes plications of nuclear science. To
(powered by more conventional paraphrase the Bible, this may be
engines). It does not take much a case of "and after the fire and
imagination to see these nuclear the wind came the still, small
engines actually propelling the voice"—of science.
military planes like the Martin
These smaller applications of
Seamaster specially designed for nucleonics
may prove just as im¬
them; nor does it take
much
imagination to see the possibilities
of such planes of enormous speed
and power—and almost limitless
cruising radius.
My imagination (and my crystal
ball) fail me when it comes to
early expectations of commercial
atomic planes, or of nuclear-

ally—generated largely as heat, we
might do well to think of using
this energy simply as heat, with¬
out worrying about conversion to
electric energy or use for propul¬
sion units.

plants may someday op¬
large industrial plants like
oil refineries or paper mills, heat
energy

erate

large industrial or domestic areas,
perhaps heat a military base in
the Arctic, or furnish fresh water
from sea water. These operations
not

yet

practical in

prove

U. S., although
waste heat from American plutolike

areas

our won

is

reactors

nium

the

of

part

heat

to

used

Hanford,

of

town

Wash.

and you
folks in the soap industry — will
do well to think how your busi¬
American

will

ness

industry

—

affected

be

nuclear

if

gives to foreign countries
electricity,
heat
and
water in
energy

quantities, at prices, and in areas
could

it give you
Cheaper

Will

happen.

tougher competition?

New and increas¬

materials?

raw

This

available.

heretofore

not

ing markets?
Excepting political factors, these

questions indicate the major im¬
pact of nuclear energy on Ameri¬
can
industry between now and
1980.
The period 1955-1960 may
appear
somewhat quiet but we
should

real

the

this

that

remember

represents
with

realize

when

apparent

it

that

time

phase,

building

results

production actually starts.
I

oil,

that

with

ment

been

talk

or

gas, etc., and
such pronounce¬

natural
each

fuel

newly discovered

serves

re¬

made these warnings sound

like the old cry of

,

in atomic mass
and in many physical properties.
Many of these isotopes—particu¬
larly those produced artificially—
are
highly radioactive and this
property makes possible their use
cally

but

—

"Wolf," "Wolf."

wolf—after all,"
American

We

see an

can

fossil

fuels.

At

the predicted

rate of consumption,
they will be exhausted—so far as
currently economic recovery is
concerned
by the end of this
century.
The world as a whole
—

no

off:

better

years

alone,

world

will

in

the

next

people
much

as

use

the

of

50

the

energy

they have used since the birth

as

of Christ!

"tracers."

as

■;

Radioactive

particles
tion

tected

similar to X-rays

some

—

off

give

isotopes

certain types or radia¬

or

radiations

these

and

be

can

—

de¬

recorded
photographic film. This radia¬

sources

fossil fuels

can

are

no

re¬

more

supply the industry of the modern
world
of

a

than

could

century ago.

wood

—

coal

clear—? ?
are

enough

for

many

Hiroshima

as

source

radium

isotopes

used

—-

radiation

—

for

sources

as

It

—

the wood

The
oil

fuels

sequence

—

appears

gas

that

—

is:

nu¬

there

nuclear fuels to last

centuries.
and

Perhaps
Nagasaki blasted

the world loose from




complacency

agriculture radio isotopes

used both

tracers and

as

are

to

kinds of

production
represent a
dominant Jactor in the military,
economic and psychological think-?
ing of our country. Imagine how
the
complete elimination of
atomic bombs would affect (1) the
size and disposition of our armed
forces and our military budgets,
(2) our whole problem of U. S.
foreign
aid
and
international
trade, (3) our tax situation, etc.!
Economic

corner"

and

use

in

the

most

by instruments

or

economical

industries

on

help

They

leaks

locate

to

be

lubricants and to survey
oil-bearing shales In'very deep-

graphs

radio

from

like

X-rays

to

Radiation is

fects.

men,

Age

was

metals

radiation

is

from

hower—in

nature

of

the

Thus

detector.
are

of

thousandths

10

copper

high

sheeting

pressures

beta-rays

an

feet

around

700

Similar

equipment

per

is

the

its

world

determination

the fearful atomic
dilemma, to devote its entire heart
and
mind to
find the
way
by

to

help

which
.

solve

the

of

ness

inventive-

miraculous

man

shall not be dedicated

to his death, but consecrated
his.life."
-V: '

to

■

this

"That

can

done

be

so

was

stated^ by * Adm.
Lewis
finely
Strauss, who wrote—just 10 years
after Hiroshima:

faith

"My
Creator

evolve

tells
not

did

through

the

that

me

intend

the

ages

man

to

to this

stage of civilization, only now to

something that would de¬

devise

stroy life on this earth."
These two statements

to

might well
industry

be the credo of American

in

an

Atomic Age.

Harris, Upham Offers

un¬

This

is

much like measuring the U
of
ore
with
a
geiger
counter.
Ninty percent of hyper-

very

Inv. Course for Women

content

the

sterilization

a

reactor

which has
trate

can

thus

pre¬

system. Radioiodine
chemical compound

nervous

is built into

Mrs.

Rose

registered

O'Neill,

a

itself
can

be precisely

against leukemia.

pork.

Though

react alike to

ably

be killed

not

at
of

located for

all foods
radiation, a

do

Radiophosphorus has been used

in
not

in

well-balanced diet can be
radiated food that has
been too greatly .damaged in

flavor

or

odor.

Bacteria

are

which

cerous

discussion

"The

of
Planning."

Background

Investment

Individual

great numbers of can¬
cells are produced.

A. J. Beliizzi With

Since radiation kills the abnormal

,

tire body.

J. S. Strauss & Co.

than

other cells, patients may be given
treatments of X-ray over the en¬

But a drink or injec¬
paper, linoleum, rubber and steel
Either beta or gamma radiation tion of radiophosphorus into the
industries.
stream
accomplishes
the
of potatoes can prevent sprouting, blood
effect
more
conveniently
Similarly, Co6® sources are used at a commercially practical cost of same
one
cent
to measure and control levels of around
per
pound— and safely — killing the diseased
•

—

periods will concern "The Stock
Market and How It Operates" and

white

cells somewhat more readily

cer¬

some

Leukemia is a

the one-hour lecture

sort of cancer of the blood stream

reason¬

minute. tainly killed—unfortunately
used
in vitamins are, too.

Monday

tendency to concen¬
in brain tumors and

can

certainly

New York office,

Monday, Feb. 27 and

on

March 5. Commencing at 7:30 p.m.,

foods

three

99 Park Avenue,

a

effective surgery.

inch— -prepared of

being rolled
and at speeds

States pledges be¬

"The United
fore

measures

overactive.

or

china

an accuracy

of

also

12 years

tions, Dec. 8, 1953—just

after Pearl Harbor—stated:

scin¬

thyroid gland is

days — three
weeks without refrigeration. Tri¬

used to measure

—continuously and to

the

serve

mate¬

amount

counter

whether

radiation from radio iso¬

Partial

source

and

(from Sr9®)

tillation

address to the Gen¬

An¬

counter.

deractive

ly radiation directly in
will have possibilities.

continually measuring this radia¬
tion, it is practical to determine
rials between the radiation

scintillation

a

other instrument involving a

topes have been tried: undoubted¬

though absorbed in varying de¬
grees by different materials.
By

the

for

an

Assembly of the United Na¬

eral

of radio¬

administered

really

when

trially,

patient, the iodine concentrates
in the thyroid gland, outlining it

plant

gamma

radio

penetrating,

very

are

This Atomic
opened, indus¬
President
Eisen¬

in one!

we are

representative with Harris, Up¬
thyroid cases treated with 1-131 ham & Co., nationwide investment
lions—of dollars to farmers.
are brought under control in two
brokerage firm with 35 offices
Irradiation of food and drugs to four months.
coast to coast, and members of the
has captured the public fancy—
Another
interesting diagnostic New York Stock Exchange, will
and millions of dollars of experi¬ technique
involves the use
of conduct a series of two investment
mental
funds.
Both
beta
and radioiodine in locating cancers of courses for women in the firm's

For thinner,
radio-caesium
(Cs137)
can
be
used.
Several
pictures may be made, simultanely, from a single source.
Certain

valuable tool for

iodine

unbelievably

an

Ladies and gentle¬

Atomic Age."

a

$25,000 worth of These and similar developments
be used on up to will mean millions—perhaps bil¬

can

isotopes

active

oats, wilt-resistant
tomato
seedlings, and a peanut
plant
with 30%
greater
yield.

does the work of

lighter,

a

harmless doses

When

rust-resistant

isotopes are
take radio¬

of metal
castings, etc.,
reveal any hidden de¬
Fifty dollars worth of Co60

radium and

.

geneticists, who have
already used radiation from iso¬
topes to produce a new strain of

thus

and

error.

already opening to
of

bright future. But we do not have
look to the future
for "An

metabolism, blood circulation, the

determined.

the

holes.

Rays
used

5%

Similarly, moisture content of
soil, grain, timber and stone may

in

underground pipes, to develop im¬

drilled.

with

manufacturing

and

are

doors

to

manner,

telemetered

and engine parts.

gears

the

us

—

tires and

(3) sociological effects on re¬
of people and prod¬

agriculture,

,

measure wear on

(1) distribution and
manufacturing facili¬

tions

.

used to

of

Finally, the numerous applica¬
of nucleonics to medicine,

and promises

Radio isotopes are of enormous

to

is not

power

"just around the
already affects our

ucts.

importance in the diagnosis of
fertilizers, certain diseases. It is hardly an
and
then
using instruments
to exaggeration to say that they are
trace
the uptake from the soil revolutionizing
diagnostic medi¬
through roots, stem, leaves and cine. They aid in the detection of
tumors; " They
shed new
blossom, agricultural experts can brain
now
determine the right amount light on bodily processes such as
fertilizer

atomic

distribution

radiophosphorus in

of

—

ties, (2) costs of future production

By incorporating small amounts

of

on

location

as sources

radiation.

for

use

and

thinking

—

cancer

potential

yet here but is

others."

cure

already here—and

increase!

Atomic bombs—their

and

course

some

In

look

to

impact is

will

.

,

Of

try

the

sources

cheap,

etc.

certain re¬
otherwise be

promote

into the
fact that

not

bones, locating imbedded articles,

as

uses

Other

ble

too far

future and awake to the

substitute for

cheap

a

X-rays in radiography.

or

..tracers

to

energy

power

topes

and at the formation of red blood cells and
on
the
spread of certain types of
proper time in the growth cycle.
tion cannot be destroyed (except
Radio isotopes help to show how cancer.
much of a fertilizer is obsorbed by
by the passage of time) hence an
Other radioactive techniques
atom of radioactive "tagged" car¬ crops and how
animals convert show promise in measuring liver
bon, for example, can be followed the crops into meat and milk. and gall bladder function, which
through any series of chemical or Similarly, by feeding a hen with are important in diagnosis of dis¬
physiological reactions. It can be radioactive phosphorus and cal¬ ease of these two organs.
used
to
trace the
life cycle of cium
and
then
measuring
the
Radiosodium has been used in
certain mosquitoes,
the flow of radioactivity of the egg, it is pos¬
studies of the circulation, impor¬
oil
in a ; pipeline
or
the exact sible to find out how much of
tant to the understanding of heart
buildup of complicated organic these elements is required in the
disease. A tiny amount of radiochemicals and medicines. The ap¬ process of egg production.
sodium injected into a vein in the
plications of radio isotopes
as
Snowfall and snow packs are arm will
give an accurate meas¬
tracers are now so widespread—
remotely metered for water con¬ urement of the time it takes the
in industry, agriculture and medi¬
tent—information used in irriga¬ blood to
reach the heart.
The
cine—that it is possible to men¬
tion and flood control
by same isotope can be used to meas¬
tion only a few.
burying a Co6® source in
the ure blood flow in coronary ail¬
ground and placing
a
shielded ments. Radiosodium is especially
Industrial Uses
meter
15
feet
above.
Water
suited
to
such
applications be¬
In industry radio isotopes are
equivalents up to 45 inches are cause it decays rapidly.

and

Some additional

quired:

iso¬

measuring instruments, radio

or as

vary

or

is

radio

may make possi¬
light
and
portable
equipment for use by doctors in
examining and setting fractured

addition

In

•

of

uses

—

I remind you that "There may be
to

can

Drink¬
ing water is quickly analyzed.
Hydrogen/carbon ratios in hydro¬
carbons are easily established.

eight inches of steel.

end

Vanadium

application of nu¬
to
production of

or to other peaceful uses
and radiation have been —many of which are in the fu¬
ture. Perhaps—in commenting on
most impressive and may prove of
the greatest importance. We have the impact of nuclear energy -on
already mentioned the use of Co6® American industry — we should

medical

The

V-yV'VV -tr'VV.
the most exciting
work on radio isotopes lies in the
actions that might
portant — and even more immi¬
difficult to secure.
Great field of malignancies — cancers,
nent
that military and power very
new possibilities are
opening up etc. Here progress has been phe¬
uses.
I recently saw an official
for the chemical industry; it has nomenal. Cobalt-60 is widely em¬
list of about 150 uses to which
already proved possible to pro¬ ployed in hospitals for treatment
some
form of atomic science is
duce new plastics that are much of cancer; the rays from a radionow applied industrially.
more
resistant to heat than the cobalt pellet are aimed at cancer¬
We
can
hardly talk of "these
former
ones,
and this will no ous cells, which are more vulner¬
special uses without bringing in
doubt greatly extend their pos¬ able
(than surrounding normal
the words, "isotopes," "radiation"
sible uses.
In the case of one cells).
and "tracers." Without getting tbo
plastic
material
(polyethylene),
Doctors
hestitate
to
claim
deeply involved it may be suffi¬
irradiation can increase the hard¬ "cures"
for
cancers:
they
call
cient to explain these briefly.
ness, tensile strength and density them "arrested."
But if I had the
Isotopes may be considered sim¬ of the product. This is but a single same information
or nerve
I
ply as different varieties of the example.
would
quote
"Time"
magazine
same
atomic species, or element.
There are many others.
which reported:
The isotopes—of the same element
"It
(radioactivity)
can
cure
all behave similarly — chemi¬
Agriculture

At the risk of again crying "Wolf"
a

percent—can be made

five- minutes.

be detected in micrograms.

proved

.^.

has long

of ap¬
proaching exhaustion of the
world's supplies of fossil fuels—
write

pDpular to

coal,

—

0.02 weight

clear

atomic

mentioned

bombs and the
Medical Uses

analyses, raido iso¬
topes have proved invaluable too.
In the oil industry, hydrogen de¬
terminations
to a precision of
in

Summary
have

We

penicillin.

as

—

Theoretically — but with eco¬
nomics not determined — atomic

may

such

or

to sterilize medicines

and

,

is—basic¬

power

Radio isotopes are used to meas¬
ure soil erosion and movement of

grain

insects in

kill

to

fruits,

—

powered trains or autos.
nuclear

slag

furnaces.

In chemical

electric power represents

or

long as it remains

as

charges in some areas.

silt.

Peaceful Uses Other Than Power

propulsion of

been developed for

just in

Ill

heat

blast

in

time too.

long before

they are economically practical.
Here, again, factors other than
actual costs will control.
Practical nuclear engines have

Thursday, March 1, 1956

.

The U. S. potent. Of course, neither X-ray
radiophosphorus cures leu¬
or
toxicities interfere with ordi¬ Army expects to have in opera¬ nor
kemia but both serve to make the
nary measurements.
Accordingly, tion, by 1958, a plan to irradiate a
it is possible to measure levels of thousand tons of food per month. patients more comfortable and ex¬
In addition,
molten glass in closed furnaces, or
radiation can be tend their lives.

—where

Upon American Industry
these will be possible

used

..

white cells

which is not too far from freight

of molten steel under molten

9

Nuclear Science Impact

Since

Financial Chronicle

The Commercial and

(1072)

"

SAN FRANCISCO, Calif.

—

A.

Joseph Beliizzi has become asso¬
ciated with the trading
depart¬
ment of J. S. Strauss & Co., 155
Montgomery
was

Street.

Mr.

Beliizzi

formerly with Walston & Co.

\

Volume 183

Number 5512

.

.

.

The Commercial and Financial
Chronicle

(1073;

The

following
at

To the

from E. G. Grace, Chairman of Bethlehem Steel, appears in the
company's
Employees for 1955. If you would like to see the report, your request to us

message

Annual Report to

Bethlehem, Pa.,

Employees:

It is very

or

-

gratifying to report that

our

the nearest Bethlehem office, will bring

product—to

•

.

mutual efforts last

year

resulted in the production and shipment of

than

ever

more

steel

to meet

a

.

was

a

notable year, one which showed that

our

large

ness.

'.-

v:

'H;,:

keep

steadily increasing

pen

capita consumption of steel creates

a

goods using steel which must be supplied by
private enterprise. I
*..y.
■v
expansion

response

program

two years we

has been to launchthe greatest

in the company's history. Within the next

shall spend

In

ingot capacity,

more

'v

public policy to assist
We

recognition of the needs of the country, the steel industry
planning the addition of 15,000,000 tons of annual

The

financing of such

years.

a program

past, much of the expansion

have

been

adequate earnings to
back into the busi¬

practices,

us

by

means

encourage

presented

of sound government tax

expansion; and development..
with

many

problems

in

our

during the last half of 1955. New problems will arise. But the
response
year

is not

..

an easy

I

of

our

shows what

am

.

task. In the

employees through record production last
can

be done.

confident that the demand for steel will remain
strong

throughout the

year. Our shipbuilding prospects are improving
significantly. In short, the immediate future is clear and
promising. But the long range job, with all it implies, lies

ahead. Production performance such

immeasurably

whole is

ingot capacity in the next three

or

$300,000,000 in adding

some

than 3,000,000 tons of annual

as a

must maintain

This requires the maintenance of sound financial

policies which will

demand for

Bethlehem's

we

endeavor to meet the great demand for steel that
occurred

■

The United States is growing and the steel industry must
pace with that growth. Our rising populationVwith its

.

properly the demand of the public. This is

costly.

realistic price and wage policies and
continuing progress on
the technological front.
But, we must have also an enlightened

investments for growth have been bearing fruit; We cannot

stop here.

serve

to you promptly.

attract investors and to have funds to
put

growing demand for steel products have brought benefits to
our
company and employees through increased production
and earnings. j
v
It

more

Fbr this; reason

before in Bethlehem's

history.
' /
The expansion and improvement of our facilities

«

much

a copy

ease our

The maintenance of steel
is vital to

our

is essential to
I

am sure

as we

had in 1955 will

task.
as a

free

industry in

a

free economy

personal liberties. The growth of the industry
our
economy because steel is a basic ingredient.

Bethlehem will do its part.

brought about by improving
adding to existing installations. However, additions to
was

capacity in this manner cannot continue indefinitely. In the
future, the industry, and Bethlehem, must create entirely
new

capacity—integrated from




raw

materials to the finished

CHAIRMAN

26

The Commercial and Financial Chronicle

(1074)

excessive

why

Problems of the Domestic

force

can

mally

demands

domestic

abroad

prices abnor¬

high, as they did after
1951, and excessive sup¬
abroad can force our mar¬

pile, and without restrictions as to
subsequent resale or use. The bar¬
ter program

temporarily aid
in addition
annoying many na¬
may

Korea in

Mining Industiy
automatic tax on lead
resolve conflicting interests of producers,

producer recommends

and zinc imports to

an

be curbed when metals

are

in

excess sup¬

a

level

non-profit

occur

possibly
whose

tions

economies

create

new

metal

based

are

will certainly
and grave problems for

agriculture,

on

it

producers

and consumers.
history is plain that
large-scale government interfer¬
ence in world commodity markets

The lesson of

usually generates confusion and
bitterness, and often solves noth¬
ing.

The United

The U. S. Consumers' Best

Next, let

Interests

us

mobilization base level, set by consumerindustry board, around which the import tax would be imposed
or
suspended depending upon price direction.

sider both the peacetime economy
and the defense requirements of
the

nation.

In

peacetime, some
imports of the major non-ferrous

would

take

months

or

—

the position

metals.

Many

take

consumers

years

to

could and would climb

copper

beyond
I

levels

any

hitherto

they,

have

reached.
there is npt the

convinced

am

slightest

intent on the part of
of my friends among foreign
producers
of
metals
to < drive
any

prices

the

at

up

domestic

of

expense

I

consumers.

our

am

sure

that they would resist to the best

they

United States consumer of

of the

or

bring production back to anything
like
necessary
levels.
In
the
meantime, prices of lead or zinc

know,

very

consider the very

important problem

kets. Plan proposes a

Thursday, March 1, 1956

.

adverse

prices

just

prices, because
as

do,

we

effect

of

the

abnormal

customers. My point
regardless of their good

on our

that

is

excessive up¬

an

ward movement of

States' Best

Turning to the mineral needs of
the United States, we must con¬

.

of their abilities

,

Interests

ply. Cites deficiencies of stockpiling, bartering, free trade with
subsidies, in making comparison to consumer savings resulting
from allowing only "needed" imports and by stabilizing mar¬

We

to

again.
Let us keep clearly in mind that
our chief objective
is to develop
a long-range program that will at
least
protect
domestic
miners
against
ruinous
floods
of
un¬
needed imported metals.

pedient and quotas too complex. Mr. Fletcher notes that exports
are curbed when metals are short and questions why it does not
follow that imports

down

tection should either

politically inex¬

and the Government. Tariff is found

consumers

kets

producers, as they did in
1953.
Domestic
producers were
powerless in both instances, and
all they ask is a measure of pro¬

President, St. Joseph Lead Company

Noted mining

to

for many

FLETCHER*

By ANDREW

the farm problem, but

plies

.

intentions, they
pletely
unable

would

be

com¬

control

to

the

the view that they

forces

only with obtaining adequate sup¬
plies of satisfactory raw materials
at as low a price as possible. The

simply cannot be argued that thisv

thus

would

set

not

in

motion.

happen

because

It

we

all''greatly concerned'"-"giving precognition" * I do not
have all seen it happen, last year
metals
are
generally
required.!
finding; a solution |'to the;;mean' < instant', agreement*, with
place of origin is of secondary im¬ and in the years immediately
immediate -problems of! 'the do- * whatever, lour foreign friends ask Therefore, it is not in the inter-! portance. There may have been
preceding, not just once but over
ests of either foreign producers'or
mestic mming industry,, and the^ of: usl
We should have the wisa time when this view could have
and over again.
dbmestic consumers if we set up
are

with

/

,

dom to determine what we must

lead -zlitt c-M

'

*'

"

branch

it

of

do to

preserve

strength,
and the

own

our

"

particular!

in

Although
e m e r

the

•

>

so

of many

that

iron.

1 1

a

e

n

e

they have only
temporarily, not

Actually

concealed

better

or

should

worse

much longer be

resolution

their

and

eliminated,

In

not

postponed.

considering

that

measures

bring a lasting solution to
domestic
mining's
problems,
I
should like to confine my discus-

would

points:

sion to these two main

for believing that the maintenance of a
healthy domestic mining'- industry is essential to the best interests not only of the domestic proFirst:

My

reasons

States

particular

a

as

whole, and in

the -domestic

of

of metals.

sumer

--

'
;

^

Second:

An

con-

•

analysis of sevmaintaining a

methods

eral

the

of

but

metals

of

ducers

United

of

healthy domestic mining industry,
I will test each method by applying

this

it

to

the

Is

stick:

four-point
method

yard-

effective,

fair, automatic, and feasible? -If
not, it will not serve our pur'

pose.

point out here that the

May I
St.

Lead Company,
of
President, has sub-

Joseph

which

to make

We

will

domestic

that

know

demand

an

ade¬

unneeded

im¬

.

to

As

by

the defense needs

of the

nation, I could cite no better au¬
thority than President Eisenhow¬
Cabinet

er's

Committee

Min¬

on

erals Policy. In its report to the
President, this Committee sought
"ways and means of maintaining
or achieving proper levels of effi¬
cient domestic

(mineral) produc¬

tion

required as an adequate com¬
ponent of the mobilization base."

I

am

investments

stantial

in

the,

flicting interests? To put it quite
simply, I do not believe that there
can be much choice. We can rec-

ably below the output of 1951.

onciie these points of view because we have to, and we have to
in
best interests of us all.

to

mining

United

domeftic

both foreianand

ohases

oftheprebiem
to

use

industry

The Domestic Producer's

the

as my.

lead-zino

mining

chief example be¬

I
am
more
closely
quainted with its activities.

Background
~

for

.

ac¬

zinc and 12-cent lead. Keep that
rGriiember, too, what caused, those

prices. .The collapse of lead and
zinc markets, and the closure of
so many domestic mines, was the
direct

result

unrestricted

of

unneeded imports.

Discussion

.

.

"would £^3^*

cause

...

Our

domestic

miners

and

This threat to
has not been

past experience in studywjpe(j 0ut by stockpiling. It can,
solutions for mining industry an(j
wreck our markets again
problems makes it clear that if an(j again until we find some
a
program can be supported by
equitable and feasible means to
everyone — producers, consumers, control it.
ing

and

the Government—its chances

uravUedCeeiinVo?kiTrZUSSuchma"
proved. In forking out such a
program,

these

are

some

nmKlom

•

0.

A

Domestfc. miners are
steadily rising costs,

of the elements

special considerations with which

yoncj

of which

are

their control.

Werr^Ufr be Prepared to deal:
raise prices too high
^he Umted States cannot avoid

faced with
the

major

almost be-

They cannot
or

fhey

has been of at least
fit

to

as

It

much bene¬

foreign operators

those of the United

as

it has

States—in

fact, I have heard of foreign pro¬
ducers complaining that the exist¬
ing London metal prices are so

the

effect

on

of any

action

we

other

countries

recommend.

address

Colorado

Denver,

that

the

convinced

not

were

the

because

believe,

I

carried out
over a period of years, would ac¬
tually save them money. By pre¬
senting the facts on what has hap¬
pened in the recent past, I hope
to

convince

that

in

programs,

their

own

helping

of

consumers

best

metals
lie

interests

I

mining.

domestic

situation.

much

metal

United States is sold
of

London

Exchange

the

of

this

for

so

cause

Metal

part

Metal

respon¬

Be¬

outside

the

the basis

on

Exchange

quo¬

two points

con¬

cerning it that U. S. metal

con¬

tations, there

are

ought to realize.
These
are:
(1) The' "London Metal Ex¬
change (LME) has an extremely
sumers

powerful effect

metals,
are

an

prices

on

U. S. prices of

especially now that
importing
nation;

on

the LME

based

are

we

(2)

certainly do not expect that this

on

sales of
of

metal.

By

by Mr. Fletcher to the
M'ning1
Association
Meeting,

Colorado,

Feb.




3,

1956.

and

higher wage scales make it
impossible. -The
domestic
pro-

dUC<~f CaiV?0t Completely Satisfy

pro¬

duction of

fluorspar in Mexico has
already been increased through an
exchange for wheat, to the detri¬
ment of domestic fluorspar pro¬
ducers.

The

minerals

obtained

under barter agreements are not
automatically placed in the gov¬
ernment's

demand

are

That is

of higher

time, because
decline

in

costs

United

the

the

greater the stability of U. S.

metal markets.

Let me give you a few exam¬
down to ples of metal markets where do¬
mestic consumers recently have
a very few.
Only the lowest-cost
producers could survive. Mining's had to pay extremely high prices
States. The number of U. S. metal

producers would

narrow

labor force, as well as its "know-

how" would decline, and the do¬

because domestic mine output fell
lost out

far short of demand and

mestic

kets

would

•

rhe domestic market, except When
drops seriously.

in

would

to imported metal in influence on
industry's customary mar¬
metal prices.
disappear except for
In
those
last
few
producers.
But
copper, work stoppages in
some
manufacturers might view three of the five major producing
all this with equanimity because, areas of the world last year lost
fore met the test of effectiveness
a total of about a month's
output.
and feasibility as far as the mar¬ after all, they would be getting
At a time when the U. S. price
ket price was concerned, but pn- metals from abroad at low prices.
was still 36 cents a
pound, London
less our government is willing to
Sooner or later, however, with
Metal Exchange price of copper
assure
that * stockpiling
will be domestic production greatly re¬
was
up around 400 pounds, the
continued for five or even ten duced, demand for metals such as
equivalent of 50 cents a pound in
years and is. willing to take the lead
and
zinc would
inevitably the U.
S. As always, in a rising
world surplus production of lead rise beyond the capacity of for¬
market, the LME copper price led
and zinc, then the stockpiling pro¬ eign
producers
alone
to meet. the U. S.
price upward;' just as in
gram falls far short as an auto¬ Such a condition of world-wide
a weak
market, the LME price has
matic or fair device.
scarcity could even happen almost forced U. S.
prices downward.
Also, in connection with stock¬ overnight, as has recently hap¬ Competitive bidding among con¬
piling, let me warn you of the pened in the copper industry. The sumers for the reduced available
authorization that the Department simple force of industrial growth supply pushed the domestic pro¬
in the world will be enough to
ducers' price up to 43 cents a
of Agriculturehasto barter through
the Commodity Credit Corporation bring it about. Left uncontrolled, pound,
the highest level since
this situation would obviously re¬ 1872. Custom
its agricultural surpluses for stra¬
smelters sold at up
sult in
competitive bidding for to 50 cents, and grey market
tegic and critical materials — in

wiU fact, I have been told that the

their

competitors in
a
position of leadership in the other materials.
They cannot sell
free world today. Therefore, we as jow as
foreign producers can,
cannot avoid giving recognition
because their lower grades of ore
encourage

to

largely,

consumers

sibility

a

relatively small tonnages
Representing at best a
This Committee also recognized
sonable price, and, we must admit
job will be done on any one oc¬ thin market, the LME is therefore
"that a strong, vigorous and effi¬
casion or by any one man.
^he adequacy of this supply
It is extremely sensitive,and its prices
cient domestic mineral industry is
a job in which we all
must join, fluctuate quite rapidly and widely.
depends, to some extent at least, essential to the
long-term eco¬ because our interests are indention imports.
In comparison, U. S. metal price
nomic development of the United
cal. The consumer belongs on our quotations
are
based on actual
rj-,^ present Administration in
States," and throughout its report
Washington, and it is likely any re-emphasized that the domestic side; it is up to us to show him sales to consumers. On the con¬
why.
trary, LME prices only rarely re¬
future Administration, will prob- mineral
industry is "an important
flect actual sales to
consumers.
ably continue to resist any marked element of the nation's mobiliza¬
Fortunately, in so doing, we do
not have to deal in theory as to The LME supplies a means for
increase in tariff protection for tion base." The truth of this
state¬
domestic industries. I.do not ap- ment
what might happen to consumers hedging against price changes or
isjso obvious as to need no'
of speculation; it does not, nor¬
prove of that position.
I simply reaffirmation. The only problem under various circumstances. We
mally, supply metal for consump¬
state it as a condition that we is how best to assure the kind of can cite what did happen to them, tion.
Therefore, the LME does not
must recognize,
thriving domestic industry we are and I am prepared to show that
provide an accurate index of the
what happend to them, in lead
The domestic mining industry is all agreed is essential.; ;
true supply-demand situation in
and zinc particularly, cost them
faced with the unpalatable fact
In line with
the Committee's
any
given metal.
Nevertheless,
more money than a market more
that metals and minerals can, in
the LME exerts a powerful influ¬
recommendation, the President did favorable
to
domestic
mining
general,
be
produced
for
sale establish a
ence
on
U.
S. markets, largely
temporary remedy for would have cost them.
more cheaply outside the United
the ills of the lead and zinc indus¬
through the ebb and flow of for¬
States than inside,
First, let me outline the ideas eign metal whose movements are
try. In lieu of the tariff protection
we
will have to
work against. based on LME
prices. In general,
Therefore, whatever course we recommended by the Tariff Com¬
recommend must consider Admin- mission, he set up the current Imagine for a moment the results the greater the influence of do¬
of
mestic metal in domestic markets,
istration foreign policy and the stockpile program.
following the free trader's sug¬
Although this
buying
our
metals and the lesser the influence of
needs of domestic consumers, as program did bring about higher gestion * of
well as the immediate problems of prices for lead and zinc, it has not wherever we could get them the imported metal in domestic mar¬
Production of metals kets, the less the influence of
domestic miners. Is it possible to materially increased domestic pro¬ cheapest.
reconcile
these
seemingly
con- duction, which is still consider¬ would be stimulated abroad, and, LME prices on U. S. prices and
quate supply of metals at a rea-

high that the competitive position
!v
^ Best Interests
of the metals in European markets
States,
one
of the
I hope that current prices of is
being adversely affected, and
lowest-cost
domestic
producers
lead
not
dulled
and zinc have
production too greatly stimulated.
of lead and zinc.
Our organization thus has an'annreciation of y°ur memory of 1953, of 10-cent The stockpile program has there¬

outside,
and is also

operations

like

the mining industry has

programs

offered in the past have met oppo¬
sition on the part of consumers,

London
bear

must

.

b

been

for

Andrew Fletcher

as

net importer

of them, for example, of

consumers

mining have

a

lead, zinc, petroleum and

copper,

problems

production

and our
fallen so greatly,

the United States

of you

solved.

United

the

rapidly,

has

domestic

of

of

economy

requires a growing quan¬
tity
of
metals
and
minerals.
These requirements have grown

piling pro¬
gram, I hope

the

imports, " but

States

cur-

believes

friends that

our

The

scheme to exclude all, or a sub¬

ports.

stock-

none

convince

The

form

rent

to

w a s

the

of

wit, the courage,

it must be done.

reached

later

to

tact

an

gency

solution

in

and

been justified, but recent experi¬
ence shows that it is rather short¬
part, of metal imports.'
The damage is done not by needed sighted, if not untenable. Certain
a

stantial

held in

stockpile but
supplemental stock¬

strategic
a

available supplies, and in turn,
skyrocketing
prices.
Manufac¬

transactions

went

The

behavior

turers in the United States would

prices is

turn

consumers

accusingly

domestic
for
in

metal

once

miners

to

more

and

call

recent

domestic

even

of

higher.
copper

excellent example for
of what happens when

an

producers

are

over¬

help, just as they have done whelmed by runaway markets.
In mercury,
past war years. But the next
beginning in about

time

there would

swer

the

best

call, and

intentions

in

be

few

even

the

to

an¬

1948, imports from Spain and
Italy increased from 13,000 flasks
it in 1947 to 31,951 flasks in 1948,

with the

world,

;

Number 5512

183

Volume
'

a

'

>'

.

.

.

The Commercial and Financial Chronicle

103,141 flasks in 1949, and even
56,080 flasks in 1950. Most of the
1949

imports

went

the

to

stra¬

tegic stockpile, but enough went
to
consumption
to
effectively
submerge tne domestic mercury
mining industry. U. S. production
of mercury dropped from 22,823
flasks

in

1947

to

4,312 flasks in
demand picked

1950/'When U. S.
up

again with the Korean crises,

U.

Si

mines

could

not

possibly
meet it.
Imports continued at a
high rate, but prices skyrocketed
from a low of $70 per flask in
mid-1950 to over $200 per flask
in a matter of months. The high
price has only recently begun to
encourage U. S. mines to reopen
their

because

well

owners

knew

that they could not compete with
the output of foreign mines on

straight cost of production basis.
Consequently, U. S. consumers of
will

mercury

continue

tb

high prices, until such time
mand

drops

build

S.

the U. S.
In 1953, the flood of
imports of both metals pushed zinc
to 10 cents a pound and lead to

000

is the

stable

in

self.

sure

detail

don't need to

I

what

this

flood

to

relate
of

Let

tons

of

in

zinc

the

under

even

1954.

government's

take

us

just

1948 and

both met¬
als fell from 388,164 tons of lead
and 681,189 tons of zinc in 1951

ing,

described.

figuring, let
who

stockpile

the

of

zinc

program,

Between

a

all

us

picture

regularly

this

then

even

at prices that

been

have

hand-picked,

regarded

10%.
was

to speak?
Let's
thing for the last
five-year period for which I have
the

figures.

a

bought

period.

markets,

so

same

the

In

;

have

He

a

spent

period

1950

our consumer

through 1954,

would

$897,656

for

50

tons

month of lead and $835,408 for

domestic
output has risen only paid $968,034 for his lead and 50 tons monthly of
^inc. At a
slightly.
If demand should rise
$885,765 for his zinc in that time. straight price of 15 cents for lead
again
sharply, .domestic output
been a and 13 cents for zinc, he would
could not keep pace, and sharp If, however, there had
price increases would be inevi¬ steady market all that time at 15 have spent more for lead, but his

table.
The

'

.

<

cents

v!/.';;-/

best light in which

a

for

lead

13

and

cents

for

savings

in

zinc

would

have

put

zinc, he would have paid $900,- him $53,000 ahead.

con¬

In the

only $780,-

In other words,

fairly high, would have saved

do

month each of lead and

during

and

him nearly $174,000 or about
Do you think thig period

cycle of dropping, ris¬
dropping prices.
For

consumer

50 tons

as

his lead

for his zinc.

would

moment

a

during the period I

Since

stimulus

just

1952, lead and zinc went
a

and

easier

465,245
then,

of cost to him¬

one

what the cost of lead and

through

domestic mine output of

to 318,985 tons of lead and

Let

see

have

point out only that

me

simple

zinc has been

im¬

ports did to domestic lead and zinc
mines.

000 for

pened in lead and zinc, however,

12 cents.

I'm

should ^iew what has hap¬

sumer

foregoing calculations, I

cause

they seemed to

balance

a

many

levels

would

consumers

in

creases

1956,. if the domestic

mining industry
tained

should

consumed

in

is

to

terms

of

begin

Let

how

then go

us

we

can

the price of

Continued

./

on

de¬

raised from 65 cents
cents

the

immediately

imported potash
unit

a

was

to 80

unit, to the accompaniment
of anguished cries from domestic
a

consumers.

mal

In

resumed.

was

tungsten, by

under

way

the

S.

tungsten

from

of contrast,
of the

encouragement
floor price of $63

G.S.A.

unit,

a

has

output

than one-fourth

less

domestic

risen
of

our

in

requirements

peacetime

our

wk'xJ

1955.

However,
the world price of tungsten is be¬
low the production cost of most
domestic

aid,

the

United

June

well
1956.
At

1,

have

will

been

:*
danfc

and

no
program to aid the U. S.
tungsten industry is now in sight.

In

antimony,

metal

can

be

tain

delivered

in

by

would

the

f

8etni'Skille(J

Z'\
th*nks

if

To main¬

present time,

W >4

pound.

a

from Idaho.

''

If

substantially in¬

a

creased demand should develop in
this country for the metal, the

price would
have

probably

behave

for

indicated

the

s

to

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7/f

as

material
GAS

av*ilable in

uranium,

we

had

fn

riu?H,pr°ducfs

•

2n abtJndance

,v

other

little,

fly

matlutecturing

Processes
*Araw

monyBhedin

t0

,j

metals.
In

i$

economy £

Somatic

States antimony industry has been
reduced to by-product production

I

TRai?

'"tmoat

the

antimony produc¬
require a price be¬

tween 40 cents to 50 cents
At

System*8 <,e,iveretI

domestic

a

tion

pound.

bi» Gas

Ltlfu

^

anr?

finds that the

one

a

-

WyM-.

United States from abroad at less

than 30 cents

<

'

§ skilled

if

exhausted

Tr

Vi^a

,

funds available for the G.S.A. pro¬
gram

JpMm..,..,

V

States

happen about
that time the

may

"

°iuo.

W'-^Yn tnnsylva^.

tungsten industry would collapse,
which

m
al.

''

mines, and without the

G.S.A.'s

HEARTLAND

AMERICA'S

requirements in 1950 to

point well above

a

nor¬

again early in 1950 when pro¬

duction

U.

Prices returned to

if

domestic production until the
established a
very
profitable base—now there is so
much domestic production that the
any,

government
:

producers, not the consumers, are
worrying as to what will haopen
after

1962.

This

is

an

excellent

example of why the United States
is not

Have-Not Nation!

a

In lead and

zinc, the unreliabil¬

ity of imported metal as a source
of supply for domestic consumers
is most clearly shown.
In 1951,
the

at

sis

height of the Korean Cri¬

when

metal,

we

desperately

imports

of

zinc

needed

dropped

40% from the previous

year's
imports dropped 60%
at the same time, because—higher
LME
prices had made it more
over

rate.

Here's

a

page

Lead

profitable for foreign producers to

to some

from

our

1955 Annual Report. In this report

12,500,000 people—and

Columbia operates. If you

is the record of another year of service

hundreds of industries—whose roots lie in the seven states where

would like to read this report in its entirety,

write to: Information Department—

sell outside the United States.
1

Within

tive

12

months, the specula¬

abroad had spent itself,
metal was again in good supply,
LME nrices dropped, and metal
came flooding back to the U. S. in
search of dollars. Imports of zinc
orgy

rose

270% in 1952; imnorts of lead

.rose

280%, both to all-time highs.
U. S. lead
and zinc

Nhturally,

prices reflected these gyrations in
;

imports.

The dearth of foreign

offerings in 1951 raised zinc to
19Vz cents and lead to 19 cents in




THE

COLUMBIA

120 EAST 41ST STREET, NEW

GAS

99

COLUMBIA
GAS

UNITED

FUEL GAS COMPANY

Amere Gas Utilities

Company

Atlantic Seaboard Corporation

Big Marsh Oil Company
Central Kentucky Natural Gas Company

Virginia Gas Distribution Corporation

INC

PITTSBURGH GROUP COMPANIES

COLUMBUS GROUP COMPANIES

QUARRIER & DUNBAR STS., CHARLESTON 1, W. VA.

SYSTEM

SYSTEM,

YORK 17, N.Y.

CHARLESTON GROUP COMPANIES

NORTH FRONT STREET, COLUMBUS 15,

OHIO

800 UNION TRUST BUILDING, PITTSBURGH 19, PA.

THE OHIO FUEL GAS COMPANY
Natural Gas

Company of West Virginia

8

MANUFACTURERS LIGHT

AND HEAT COMPANY

Cumberland and Allegheny Gas Company

EAST LONG STREET, COLUMBUS 15, OHIO

The Preston Oil

THE

Binghamton Gas Works

OIL GROUP

Company

The

Keystone Gas Company, Inc.
Company

Home Gas

think

higher

to consider

on

bring about

producers

80% ;of potash production in
United States. Almost

main¬

prices for all metals.

strike which thus cut off about

a

to

generally

November, 1949, the Carlsbad,
Mex., mines were shut down by

N.

be

a;profitable basis, the

on

fect of curtailed domestic output.
In

that

have

thought too high at that time, arid
levels that many of us thought
were too low.1 Actually, with the
wage increases granted in 1955,
plus probable further ♦ cost in¬

pay

as

to strike

me

between

potash, there was an even
striking instance of the ef¬

more

27

assumed stable prices of 15 cents
and 13 cents for lead and zinc be¬

production.

up

In

•

.

U.

or

(1075)

-

a

situa-

page

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as-

S'aa

S

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jo

fD

3. g" gE3? «si Sa-es HsS 3jyE <53 Trg Mj
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3 6
*5<

fD

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iX
ft) oT

fD

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0

to

fD

CO

'3

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S

3

fD

3

^

8

'

•3

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Doofedg ,

bends
These

,

-

-.

Halsey,

. r-k*
(I"ncor,pated) NACSlsotoyenl.e,
CSlDoodg.e SCRothsocli.d 3O<rkO«—-»-tK'k,5nmCPwisojSD) ^2J(033r4- 3acsmL»o e^fcvrg^cr^
CRoempupblaicny

'

Clark,

Central

Phelps,

* ..

ICS&oofninsncorpated C&Struohe.s KCoemapann,y Phelps FCSllayode.n,
ICnoc.., C&o. CSlMoose.ly C&o. JWace<kbs&on.r, CHorigpnatsion CSBraodfol. CSHamol.i
&
Blyth

Devine WWhieldte, Paine, Brown
J.
C.

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-

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C

Weeden

Dick

W.

•.

&

1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972

£
5*

03
it

a

f

>• ' :

.

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3

?
n

Incorp-ated

Corpatin (Incorpated) Merl-Smith

Michgan

First

v

2.25
2.10% *2.20 ?

krt OO

3

03

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beanrdes

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>

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2.65. 2.70 2.70.:

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30

The Commercial and Financial Chronicle

(1078)

Kleeman Heads

29

Continued from page

Problems of the Domestic

Affairs Committee

mptai

level

might be set at

piesenT

base

this

nroducers

'lower

than
The tax

prices.

market

75% of
that on metal, and on all imports
it would probably be practical to
consider the date of the bill of
lading as the date for determining
whether or not an import
tax
were due. If prices rose again and
averaged higher
than the base
levels for a month, the tax would
be suspended. There would be no
gliding-scale feature, and the proceeds of this tax would go into
concentrates would be

on

precedent for this type

legislation,

of 4ax

and

da

a

producers when the domestic
prices for these metals during the
Korean War were
19 cents for
lead and 19V2 cents for zinc ancl
reinstated

fell

four

cent

18

below

when

the

initial

tax

copper,

on

which under the Recip oca
^

Agreements was reduced to two
cents, was suspended when the
domestic price exceeded 24 cents,
cents

two

the

and

reinstated,

has

not

been

the domestic c°PPer

as

^y

likely.

efforts,

our own

"yes,"

a

Is
Only

stability,

Quite

bring

can

fumble

or

into

a

$0 that last question.
.

Therefore,

cleaf

to

>

because

tbat

me

as

clearly

approaches

0£

test

it

seems

import

an

tax,

j bave outiined,

appliecj

most

the

meeting

■

automatic

effectiveness,

prices operation> fairness, and feasibility,

The

cents.

import

increase market

^

price has not again fallen to M
cents
This principle having been

recornnJend

j

further
j

-n
g

my

a

w

fold

tagk

convince

tQ

governmental system of com-,
plementary, mutual strength rather than a source of conflicting

before

us

ical, economic and administrative standards

responsibility. References made to judicial precedents inelude: (1) the contributions of John Marshall; (2) invalida¬
tion of only ten Congressional Acts between
1789-1873; (3)

;

7

Taney, and during 1890(4) Chief Justice Hughes' resurrection of national
and (5) distinction made prior to 1941 between

power;

"direct" and "indirect" effects
As has

aptly been said, Federal v Reading of the Court's opinions
are not the offspring
vividly reflect the struggle
political science; they are the throughout our '
history for su-

of

been
interproduct of economic
ested in interpressures.
national
Arthur s. Kleeman
Such was the
banking and
trade, having been one of the origin of our
incorporators of the Avenue of Union. The
the Americas Association, and has government
long been active in the develop- that preceded
ment
of trade
between
the the United
Americas through the facilities States was a

and

social

of

for

tax do

miners?

domestic

the

lieve it would solve their

I

of the

the ironing out

problem,

be¬

primary

enjoyed by foreign
,

cost ....
advantage
...

w..

to

two-

can

republics.

ter

a

Mr. Maloney, who is also President 0f the New York Savings
said

Bank,

that

Kleeman's

Mr.

promotion of the Avenue as a
center for Inter-American trade
and culture.

13

to"

the

markets, at about

stabilize

base levels chosen because it would
serve

as

well

as

ceiling

approximate

an
as

be

Thus

floor.

a

there

states

domestic

benefit?

consumers

I

have already indicated how U. S.

distribution

of

consumers

finan-

benefit

would

FRANCISCO,

ing^

result of the second

foreign

.

o

„

As

commerce.

forexample^"n
n89 through 1869

eon-

a

This stock

repre-

any

proceeds.

Calif.

Vice-President: James K. LocAmerican

head, President,

an

integrated

pro-

Trust

cask

tapped

M0rth
and

overcome

er^cy>

both

on:

,.

ends,"

'To

held unconstitutional. Some of
landmark
Court

and

President,

pulls

o

*

npnnl-

r

Consti-

ol

people as

Looking back

it is interesting to

+u? it'

w

?• 1

"ufts^lntoL t/X slpreml
the Supreme

a

..

the

question

of

spherei^sov^y.TOettS the
"power^to'proTect Ve ero^ Federal judiciary The right of the
^ereignty. to
interests coZion to all the Z?d,eral t"dl(clar/ ?°u sJulJmo"a
State
defendant had been the

ernment
with

in

supreme

its

summon

n0mxc

as

t

and

foTh^ CouTfo^suTno^^^^heir
3>r-w|roort
toe"

established" a"'centr;Tf gov-;^^ ^UUS. e.nter.ed
central govCourt involved

t

d t
u

enforce its authority"

„on,hc
grace of

y

,

Beise,

m o n

a

our

Supreme

the

stresses among our

patient
* *

the

in the

cases

portray

stresses

Virginia
a

the defects inher-'

framerfof

the

Deonlenot

the states

'

quacies and abuses, the Constitution

drafted

was

so

as

to

a

a

a,s a defendant had been the
subject, of deep apprehension
object debate atapprehension and
.of deep the
and
active
time of
actlve debate at the tlme °f the
the
adoption of the Constitution. But

In order to correct prior inade.

the ;existence-: of any such right
had been disclaimed by many of
the most eminent advocates of the

enumer-

ate specific restrictions upon state new
and national power. For example,. was

Federal Government. And it
.largely through their dissiforbidden to impair; pation of,the fear of the existence

the states are
ducer of primary aluminum, from Bank of America N. T. & S. A
thTnk theltax^"would'h'elp'bring the .mining and processing of San Francisco, Calif.; I. W. Hell- the obligation of contracts, to coin;.of such Federal power that the
this
about.
Beyond that,
they ba.uxite to
fabrication of alu- man, President, Wells Fargo Bank, money, to lay tonnage duties, or \Constitution was finally adopted,
would enjoy a steadier and more J™1}11171 and Rs alloys into semi- San
Francisco, Calif.; Paul E. to make treaties. Conversely, the Yet, in spite of such disclaimers,
cially through stable metal prices,
~

....

I

i

reliable

du^try
'

domestic

that

fnrpian

metals

of

source

flourishing

•

.

hptwonn

Carolina

South

To

of San Francisco, Calif.
The President and Vice-Presi-

C.

at

Carolina

directiy

S.

.

only four Acta

Yet, in the four years from
-—
1870 to 1873, six of such Acts were

nw

merely bv

dent being ex-officio members,
the following were elected mem-

states' rights

valid.

niipSCho?3
Ad1lsP?»
f? ?tween Philadelphia
and 'kr?
New York "was likened to

President, Pacific National Bank

mittee:

,

t

Company, San Francisco, Calif. '
Secretary:
E.
H.
LeMasters,

The company and its subsidi- bers of the Clearing House Cornaries constitute

carried

was

.

bleeding at both arms."

of Califor-

strong

of Congress had been declared in-

ent under the Articles of Confed- ^

Chairman, The Bank

the aluminum producer's stock at

commerce
.

were

McAllister,

for

......

a

...

need

surge.'j;7:/:v. •;•'•'£;«
u

N

"

the

on

of self-de,T At other times we have obHer ert Brownell,
struction. This
jr^ served> stronger concepts of na¬
was particutionalism leading the Court in its
larly evident in the instance of • shaSn^T^s^uSi^^ctrine
states having no convenient ports
the 81 vea?s from

rn

The

Calif,

°,aieers

elected.

?nd associato

not receive

adoption of the Constitu¬

Federal powers to quiet the fears
of the public. I need not detail the

in danger

was

their

paling
nouse
Association,
organized
Feb.
4,
1876 held itsJI0th Annual Meet-

by The First Boston Corporation

per share.

the

liant

"e'Shbars

r idiiciscu

Jjfe* with the public offering ^President^ Elliott

$87

state's

and, again, in the pre-Civil
era.
During the fjrst period,
the Court, under Marshall's bril¬

thfy wer® taxad by ports
the!r
'broiigh whose

Clearing

House Elects Officers
SAN

tendency to end the

a

San Fran.

odii

sents a portion of the holdings of
boom-and-bust cycles of the last Arthur V. Davis, Board Chairman
decade. These effects of the im'he company, who will own
port tax would be of tremendous approximately 6.5% of the comhelp of the majority of U. S. lead mon stock after this sale.
Aluand zinc miners
but how would minum Company of America will
would

•

the

War

suit of legal
sovereignty,

for

Group

producers when the market price common stock of Aluminum Comis below the mobilization
base, pany of America was made on
Beyond that, this tax would tend

for

tion

which, in pur-

our

Common Stock at $87
secondary

clamor

leadership, was able to com¬
mand sufficient respect for its em¬

Offers Aluminum Co*
A

public

occupancy of paramount position
was most evident
immediately af¬

phasis

inte?ests;

what would this

.

premacy by each of the two sovereign systems.
The high- points

,

of

an

Next,

I

state power.

on

governments

,

base.

»

j

businessmen of the Latin-Ameri-

healthy
domestic mining industry
is in
accepted by Congress, the pro- th jr b
second, to
pcsal 01 an inipuiu tax for lead wnr|r ftllf an
of
import
^
work out
equitable method for
and zinc should prove acceptab
reacbfng tbat g0al
especially with the automatic
6
suspension of the tax when the
domestic price is higher than the
mobilization

!

better division

a

of

1900;

First; to Committee hoped to present a
prod- broad program of activity for the

all

ucts that maintenance of

First Boston

•:,

claims for power. In depicting judicial
precedent as a guide,
Mr. Brownell believes the problem now is
determining by polit¬

the

In

this

of

,

arrangement

carry

conclusion

consumers

:

dual sovereignty as a two-level

collaborative

ready to bejp

can

we

JR.*

States

United

which Colonial Trust Company
has made available to banks and

associates and I in

wjjj stapd

successfui

Sovereignty

BROWNELL,

for- your

you

consideration.

meantime,
gt

f'0

^

State

HERBERT

reaffirmation of state's rights under

Yes, the mechanics nounced today
by Richard L.
Maloney Jr.,
President of
t h e Association
eign production. It wil sustain
M r. Kleeabout the present market, and man has long

about

with the approval ot the domestic

were

Trust

could be clearly stated, easily understood, and would operate
smoothly. Is it fair? Yes, because
it protects the domestic miner,
but does not penalize needed for-

feasible?

vs.

HON.

Administration's Attorney General describes Federal and state

President
Company,,:

Kleeman,

automatic?

suspended

were

zinc

S.

Colonial

while we protect New York, has been appointed
Chairman, of the Inter-American
In conclusion, let me, lor the last Affairs Com- , , ;
time, apply my yardstick to this mittee of the
method of the automatic import Avenue of the
tax. Is it effective? Yes, possibly Americas Asnot as effective as quotas, but at soeiation, it
least as effective as a tariff. Is it w a s a n -

it

lead

the

essential industry of our own.

an

will

the U. S. Treasury.
There is

Arthur
of

non-fer- to other nations

to

increases

cost

™7ic

By

Attorney General of the

Mining Indnsiiy
nihpr

Federal

Inter-American

Thursday, March 1, 1956

...

.

would

nroducers

in

a

mining

in-

like

the

not
be

inclined

to

seek the better markets
„

How

be

would

producers

affected.^ One would hardly

expect^ toreign

producers

ended SePt- 30» 1955, amounted the Board, First Western Bank
to $631>660>000 and' Pet income and Trust Company, San Fran$68,134,000, compared with
$523,016,000 in net sales and operating revenues, and $42,164,000
jn nef income for the comparable

was

,

toreign

finished and finished products. Hoover, President, Crocker-Anglo Federal Government is forbidden the first suit filed with the Court
Total n.et sales and °Perating rev- National Bank, San Francisco, to, tax exports, or to lay a direct at its February Term in 1791 was
enues for the nine month period Calif.; T. P. Coats, Chairman of tax not apportioned accordingly; brought against the
State
of

to

be

cmOH'X cnnf' 1954 peri0CL

the

in

devices

fact

the

that

United

of

all

cisco

W. Schumacher and the Assistant

With Slltro Bros.

States

F. L. Salomon

(Special to The Financial Chronicle)

KEY

WEST,

Fla.

of

stockpiling.
There would be nothing but the
present minor tariff on imported
metals
as
long as prices were
high enough to sustain domestic
x

0

0

^

production?4 f'o r eTg^n*producers
can

hardly quarrel with that situ-

ation.

When

prices

cents tax would

fell

the

two

act to discourage

excessive imports that could onlv
drive

prices

Hiirpvc
ducers.

lower

After

oil

for

all

kQoitp,T,

prow,;„

After all, a healthy min¬
ing industry in the United States
is
quite as essential a defense
measure
,

iree

world

States.
of

for

other

.,

...

as

The

it

is

o

nations
tor

the

import tax

minimizing

the

of

the

«

is

United
a

way

C

Cnmnanv

Co.

D.

Admit

29 Rroadwav

New York

Brockman, bamuel B

and

L0UIS

Br0ckman

t0

cam-

llm"

to population,

Hooker &

or

give prefer-

to

Maryland

the ports of any state. On
the other hand, the Federal Government was given certain specific
ence to

powers: to coin money,

pie, and to declare
which

for examBut it is

war.

thorny prob-

partnership.

William W. Cabell
ner

in

mond,

,

away

on

a

at

Eugene Scofield is engaging in
securities business from offices
286

City.

Fifth

Avenue,

New

York

next

year,

Term

Dutch

and

the February

at

second

a

suit

1792

entered

was

by an individual against the State
0f

New

the power «t0 regulate commerce

lost

states" and

Z

•

•

among the several

lay and collect taxes.

the

They
implications of

also from the

fact

preme

Eugene Scofield Opens

Wymond Cabell, partBranch, Cabell & Co., Rich-

of

York;

and,

suit in equity

a

at

the

same

institut-

was

*

few

William

firm

a

creditors;

the
question of State sovereignty became at once a judicial issue. The

The really time,

that

we

are

a

union

of

SAN FRANCISCO, CALIF. —
statesHenry Dl Babcock, member of the
SAN FRANCISCO, CALIF. —
Inevitably, therefore, the inter^ew York Stock Exchange, on Dean Witter & Co., 45 Montgominevitably, tnereiore, tne inter!^arcb ls* wdl become a partner ery Street, members of the New play of forces within a federalism
in Hooker & Fay' 221 Montgom- York and San Francisco Stock is largely moulded by judicial inery ^^ree^» members of the New Exchanges, on March 1st will ad- terpretation. We need only touch
York and San Francisco Stock mit Bequita Monfort to limited the periphery of the body of Su-

Exchanges.

by
as

dismbuTi^ of n'ower'between llfj a Jandcof"Pany aSainst the

arise

Dean Witter to Admit

often raise

bankers

!nl3UlJ10n 01 power between state of Virginia. These suits
state and nation more usually arise ar0Used great alarm among those

to

Fay to Admit

so

lems of construction.

•

ited partnership.

Virginia, passed
inconvenience February 14th.




to

On March 1st F. L. Salomon &

Samuel

S Lfh

le

continuation

nite

Manager of the San FranClearing House is Russell

,

the

might
adopt to insure a healthy domestic
mining industry, this import tax

The

Calif.

Manager is Howard H* Huxtable- not the particularized provisions

least thev
but at least fW couin take comthey could take com¬

fort

cisco,

of

Court
the

view a
of the
relationship in its

opinion

to

developments

Federal-State

address

by

Attorney.

General

a8°8o51\^
1956.

the

issue

preme

*

'

growth

Government

of

But the

squarely decided in still

was

another

v.

increasing

proceeding

in

the

Su-

court. In 1793, in Chisholm

Georgia,

a

suit

was

brought by

two citizens of South Carolina
iwu citizens ui ouum Carolina

as

executors of an English creditor
of the State of Georgia. The state
hotly declined to appear to defend

the suit, denying the jurisdiction
of the Supreme Court to entertain
such an action. To the general
surprise,

the

held that

sovereignty aspect.
*An

in

Federal

a

Court, under Jay,
state could be sued in
the Supreme Court by an individTxr..,

.

.

,

.

,

.

ual. Within two days of the hand-

m2 down of the decision in Chts-

Volume

183

Number

5512

.

.

The Commercial and Financial Chronicle

.

holm

Georgia,

v.

Constitutional

a

"The

Constitution "must

allow

to

(1079)

'-J

'V

into

the National Legislature that dis¬

system of law, the situations which
prompt adjudication of Constitu¬

depriving the federal
courts of all jurisdiction in cases
brought against a state by citizens

cretion, with respect to the means
by which the powers it confers

tional questions
largely reflect the
clash of differing opinions of the

are

of

which

Amendment

introduced

was

Congress

other states

country. This

of

or

foreign

any

ratified in 1793

was

to

be

perform

and became the Eleventh Amend¬

to

it,

in

ficial

to

As

history unfolded, the action
Court

stage
the

for

in

the

doctrine

set the

case

several

Marshall

almost any

that

Court.

decades

of

Inquiry into

phase of Constitutional

usually

begins with the

miliar
tax

the

theme

or

that

the

"the

the

involves

stroy,"

most

manner

power

Court
no

held

power,

constitutional

acts

power

to

of

that

the

the courts and the
consequent de¬
velopment of Constitutional doc¬
trine on sovereignty in relation to
personal rights
and
community

control

or

the

Con¬

here, too, that Mar¬

opinions of the great master, John

gress.

shall announced the implied pow¬
ers doctrine
the most pregnant

doubt

no

to

as

Marshall

know,

we

the

the

on

there is
position of

basic

issue

of

sovereignty. His nationalism was
boldly and eloquently proclaimed
in case after case.
Here,' in this
period and in these decisions, we

was

—

instrument

which

devised for

giving breadth to

has

yet

been
na¬

tional powers.
In

our

or

controversy"

ties

*•

political at¬

mosphere of the times. For the
period from 1830 to 1860 was an
of

liberal

legislation

—

of

a

industry methods, in
transportation, and the

expansion
for

This change reflected the
sharply different social and eco¬

era

"case

means

welfare.

and

and

ness

character

nomic conditions

not

liberalization of rules of evidence.
Of course, the revolution in busi¬

change occurred in
of litigation before

the

and

.

property rights were
outstanding issues. It was prob¬
ably not until the 1860's' that a
discernible

misfortune

a

crime,
prison reform, homestead laws,
abolition of property and religious
qualifications for the electorate,
recognition of labor unions, and

on

de¬

Marshall.

As

law

to

by taxation

otherwise, to impede
It

bene¬

people.-' On the fa¬

eral

Under his

as

day. During the early days of the
to courts, the impact of state and Fed¬

body

to be

debt, the treatment of bankruptcy

execution,

that

high duties assigned

the

states have

into

enable

the

ment.

of the

carried

will

the abolition of imprisonment for

the

emancipation of married women,

of

the

provided
a

new

nation's

the

great

activi¬

stimulus

outlook by the Court.

trine that the State possessed
great

was

of equal

tenance

of

than
the

but

no

complete
reserved

eignty of the States.

provide for its people
power. Taney's

through the police
views

made

were

especially plain

in the Charles River Bridge Case.

There, he cautioned against de¬
priving the states of "any portion
of that power over their own in¬
ternal
police and improvement,
which is

To the Court under the leader¬

importance

to

powers

so

to their well-

necessary

being and prosperity."

ship of Chief Justice Taney, the
paramountcy of national power
within the sphere of its compe¬
tence

unduly favored or promoted.
aegis, there took place
rapid development of the doc¬

a

greater
main¬

Under Chief Justice

Taney, the

Court particularly reflected

parture from Marshall's

to

such

tion

of

the

commerce

clause.

the

infant

nation.

areas

Neither

Continued

was

on

In

inter¬

as

state commerce, banking, and con¬
tractual rights, among

others, this

brilliant jurist marked out
of

the

state

many

important lines of division

between

the

permitted

and national

reach

of

powers.

In Gibbons v.
Ogden, for ex¬
ample, Marshall told the State of

New York that its grant of an ex¬
charter for Hudson River

clusive

navigation
tion. "This

"like

all

offensive

was

the

to

clause of the Constitu¬

commerce

power," said Marshall,

others

vested

in

Con¬

gress, is complete in itself, may be
exercised to its utmost

extent, and

acknowledges
than

limitations, other

no

prescribed in the Consti¬

are

tution."
In Cohens

v.

Virginia, Marshall,

in pointing out that "The
general

government, though limited
its

objects,

is

as

with

supreme

to
re¬

spect
the

to those objects," gave us
teaching that the "constitution

is

framed for ages to
come, and
is designed to approach immortal¬

ity

nearly

as

tions

can

human

as

institu¬

approach it."

Perhaps the real

of

core

Mar¬

shall's.

legacy lies in the view
that although the Constitution is
the

law

supreme

must

lose

not

the

of

contact

land,

with

daily affairs and needs of its

that

ple;
when

the

it

is

living

it collides with

the

legislature, state

it

the
peo¬

law,

even

will

of

Federal;
and that the judiciary, with the
Supreme Court at its apex, is the
natural

the

and

final

or

interpreter

of

Constitution.

There is much to choose from
in Marshall's opinions on the sub¬

Bell

ject of the state and Federal sover¬
eign system. For me, his lan¬
guage

in McCulloch

Maryland,
never
loses its vibrancy. In that
case, you many recall, the State
of Maryland sought to impose a
heavy tax upon the Maryland

System Teletypewriter

v.

Exchange Service Plays New Role
Teletypewriter Exchange Service

in War

branch of the Bank of the United
States
through assertion of its

(TWX) provides direct,

Against Crime

communication in

phone lines. As

sovereign right to tax instrumen¬
talities within its boundaries. Mar¬

shall's opinion in the

monly

regarded

case

is

test

as

sovereignty

upon

between

the Court

an

Coming to the heart of the cru¬
cial questions, Marshall laid
down,
for the guidance of generations

Fast, dependable, direct communica¬
tions

come, enduring Constitutional
principles. This one, for example:

considering this question, then,
must never forget, that it is

Constitution

we

are

expound--

ing." And the familiar statement
that the Constitution is "intended
to endure for ages to
come, and„
consequently,
the

various

fairs."

The

to

be

crises

opinion

adapted

af-"

vital part

and towns,

Officers devised and

Detection, capture and conviction fre¬

ommended

quently depend

handling interstate

on

the speed with which

information is flashed from

one

place

to another.

For

some

in

a

a

time

Teletypewriter Service

number of cities and states.

To extend its many

enforcement groups

benefits to law

in the smaller cities

rec¬

special TWX plan for

law enforcement

also

includes

the thoughtful statement that




tele¬

symbol

the teletypewriter

or

tape, it is simultane¬
on any

other

ma¬

which the teletypewriter is
—

near

or

far.

and

study

System Teletypewriter Exchange

Service is of growing

value not only to

police but to businesses of
in many

messages.

It follows months of careful

has been used by police authorities with¬

Bell

the Associated Police Com¬

munications

are a

many

kinds

sections of the country.

Wherever there is growth and prog¬
there is increasing need for fast,

ress

provides for the quick exchange of

dependable, two-way communications.

law enforcement information for both

Teletypewriter Exchange Service, which

local and state
states

have

operation.

police agencies. Thirty

already put the plan in

now serves

of many

38,000 customers, is just

one

helpful, time-saving services

provided by Bell telephone companies.

to

human

of

to

connected

of law enforcement.

to

a

chine

adopted by law enforcement agencies in 30 states.

"aw¬

responsibility" which, never-'
theless, must be discharged to
avoid the possibility of continued
hostility.
'

we

on

two-way
over

a

ful

"In

on

writing

a message or

ously reproduced

developed by Associated Police Communications OfficerSy

state and the national government

imposes

typed

punched

The

paper.

over

is

Fast, low-cost, two-way communication plan,

com¬

his greatest
opening para¬
graph is itself a masterpiece of
writing. He recognizes, at the out¬
set, that the adjudication of a con¬
state

BELL TELEPHONE SYSTEM

To

Marshall, the clause granting the

Sovereignty which were
such
vitality and

important

de¬

sover¬

contribute

strength to

a

conserva¬

tive nationalism in the interpreta¬

find the birth of those
concepts of

Federal

31

page

32

32

The Commercial and Financial Chronicle

(1080)

Federal

to regulate interstate com¬
deprived the states of such

power
merce

In Taney's view, the states
could be deprived of this power
power.

legislation by

only by appropriate

then only if the
state action was in irreconcilable
conflict with federal legislation.
the Congress and

child

by

labor.

much
larger body of cases established
the power of Congress over intra¬
after

1900,

doctrine is

a

The

transactions.

state

from

regarded

the opinions

modern

stemming

as

of Mr. Justice

of the national Hughes in the Minnesota Rate
field was not Cases and the Shreveport Case.
thereby disputed; Taney merely These hold that the federal pow¬
insisted that the national legisla¬ er extends to intrastate acts which
ture make its will explicit if state are inseparably commingled,
ei*
action were to be invalidated un¬ ther economically through forces
The

field

the

othewise

For Greater Economic Progress

exclusively must
This principle,

By BENJAMIN F. FAIRLESS*

appear.

having its roots in early Constitu¬

However,

supremacy

government in this

history, is believed by the
Government to permit the Com¬
monwealth of Pennsylvania as an
essential

attribute

and- punish

advocacy of the violent overthrow
of organized government, at least
the

of

absence

sional

clear Congres¬

to

purpose

It

-

is

There

./The aim of
C

aoart from

Ouite

disunion.

violent

of

pect

the unfortunate Dred

Scott decision, we are

able to ob¬

the years

In

prior to 1941, the
constitutional boundary
between
state and federal power in
the
area

will

ance

trolled.

of

interstate

commerce

was

Taney's deep concern over customarily phrased in terms of
possibility of undue infringe¬ "direct" or "indirect" effects. This
ment of the power of the states to led the Court to hold, in 1936, that
enact legislation necessary to the labor relations in the coal indus¬
welfare of their citizens. Because try only "indirectly" affected in¬
of this concern, Taney is regarded terstate
commerce, and therefore
as
a
vigorous champion of so- were outside national legislative
called state police powers.
competence. It was so held al¬
The question whether a state though labor disputes might ob¬
statute which is otherwise a valid struct not only commerce in coal
exercise of the state's police power but the railroads and many inter¬
has been suspended, superseded, state manufacturing industries as
or displaced by a federal statute,
well. Within a year, however, the
enacted pursuant to the paramount coal case was discarded in cases
serve

the

of Congress over the sub¬ holding the National Labor Rela¬
ject matter under the Constitu¬ tions Act validly applicable to
tion, has been before the Supreme factories shipping goods in inter¬
many

times.

Usually,

though not invariably, the basis of
the assertion of the superior fed¬
eral

authority has been the com¬
clause.

merce

the

expected, of course, that with the
tremendous industrial expansion,
by the large influx of im¬

aided

Mr.

More

commerce.

Justice

emphasis
aspect

migrants, the aonroach of the 20th
Century would find this Constitu¬
subject of con¬
siderable litigation.
tional provision a

legitimate
the

His

the

Standards Act to
facturer

of

opinion

upholding

case,

application' of

also

appropriate

attainment

end."

Darby

the

the

the

to

*

"directness"
standard "whether

to the

means

recently,

shifted

Stone

from

the regulation was an

development of judicial
decision on the commerce clause
we find reflected many recurring
issues bearing upon our system of
dual sovereignty.
It was to be
In

state

Fair

in

in

the

Labor

lumber

a

shipping

a

manu¬

commerce,

re-established for the future

that the Tenth Amendment, as its
words proclaimed, only reserved
to

the

states

granted
fore

to

what

not

was

had

Congress,

Beginning about 1890, the coun¬ enumerated
try held to the theories of laissez
Decisional

not

limitation

a

been

there¬

and

of

its

Commission

The

mental

law

on

the

sover¬

of

machine

a

two

or

always

are

in

its

In

Benjamin F. Fairless

many

of

judicial
guides to

what

or

may

not be undertaken by either

the State
both.

Federal Government

or

But

this, it seems to me,
is not the most pressing question
in our present state of develop¬

or

ment.

The

problem is, rather, to

determine
effective

a

the

that

previously
playground
when
if

is

men

work

should

men

work,

girl went out to

see

; was
gone,
by a sheer
coincidence, she found three large
bulldozers leveling it out.

She

watched

machines and

the

listened to the operators until the

job

done. Then the little girl

was

decided
to

she

Heaven

should

give

such

for

She

*

tated

finished

-

her

thanks

and

prompt

efficient service.

/

,

thanks, hesi¬

moment, and then added:
1'Maybe I shouldn't tell on them>
a

God, but
the

should have heard

you

language

used

by

your

angels!"

Well, I'm willing to admit that
little girl
was
not entirely
accurate
in
thinking that The
■

prohibitions,

and

determination

may

that

just that

the

most

and

prudent

for satisfying na¬
through proper divi¬

means

tional needs

pericd.

Constitutional

of

terms

precedent affords
a

ob¬

of life

should

able to do."

power

the

fruitfully, but

doing those things the States and

willing and

you

think

earth

on

not

public functions the States cannot

are

sighted

-

jective

those

had

build

there; So the next morning

mis¬

.that

perform, but also to refrain from
their subdivisions

to

and

persons,

responsibilities not only to
perform, within the limits of its
i t y,

people.

listen

would

has

o r

the

short

Nation; the National Government

t h

■

hill

those

competence, but also to re¬
the

a u

' h

-

happened

so

to

little

guided

frain from action injurious to

constitutional

it

1

Commission

decided

the

To

responsibilities not only to
efficiently what lies within

their

persons

Park

the

of

have

do

do

men,

Now

around to call

Re¬

1955

to

more

few

a

r-

*

port to the President: "The States

don't

to

seem

the

They

whether

care

or

not

labor

the

produces any needed
Moles and their bulldozer oper¬
services. I sometimes
ators are angels. And I've always
suspect that those persons believe
goods
that

and

the

best

to

way

enccurage

prosperity and progress would be
to

destroy all the bulldozers and

back to moving the earth with
spades.
go

True

enough, the
of
building

method
dams

would

hand-labor
roads

and

full

em¬

guarantee

heard it said that you tunnel and

heavy

construction >

talk

men

straight, blunt, and to the point—
and

I

maybe

still

lief

that

tains.

little

that

faith

In

little. But

even cuss a

share

fact,the

girl's

move

can

be¬

moun¬

theme

of

my

brief remarks, is that there would

be
no
progress
at all, without
ployment. In fact, that system did
sions of responsibility.
These are
faith.
mainly questions for legislative guarantee full employment for the
I could give you hundreds of
slaves who built the pyramids in
judgment and the standards to be
examples of mountains that have
employed are chiefly economic, Egypt. And today, it is still guar¬
full
employment
in been moved by this combination
political, and administrative. The anteeing
*

drive is, as it
and

should be, on mutual
complementary undertakings

furtherance

Given

jaire,

designs

work

Intergovern¬

on

Relations

work in less time.

him an enemy

.

in
powers.

the

a

As well put by

large ingredient.

power

Court

ventor

mere

that every time an in¬

seems

there

is

responsibility

V.

minimum labor accomplished by machines that

a

wi.I do
It

this

In

maintained.

be

relationship,

our

is held to be creation of maximum goods and

man

services with

.

„

that

jurist, personally detested slavery,
but who was fearful over the pros¬

^

; :

be: (l)
economic system; (2)

mutual faith in each other; (3) overcoming hindering laws
and customs; (4) stable, orderly
government, and (5) do-it-<
S-f* yourself spirit. Exception is taken that "men should work."

clause.

doubt

no

r

-

r/,;

quite clear that if we

seems

understanding and acceptance of

/

the

preempt
\ ■"

field.

;

Committee

United States Steel Corporation

"

.

Steel Institute

of the Executive Advisory

Mr. Fairless stiprlates factors promoting progress to

of

proscribe

to

V

.

sovereignty
in the exercise 'of its police

power,

in

Chairman

of competition, or physically, with
bring to our governmental system
this interstate transactions so that the patience, understanding, and a
will to act wisely and effectively^
much - maligned Chief Justice, latter cannot be controlled unless
both a proper and effective bal¬
whom we now recognize as a great the intrastate acts also are con¬
der the commerce

President of American Iron and

,

tional

and

Thursday, March 1, 1956

.

Role of Faith and Bulldozers

matter, the Con¬
gressional act must be in irrecon¬
cilable conflict with the state act,
or the Congressional intent to oc¬
cupy

produced

goods

merce

.

Congress dealing with the
subject

same

Stale Sovereignty

vs.

of

act

31

Continued jrorn vage

.

central

freedom

of

of

aims.

common

strength

action

as

local

and

enjoy

we

Communist

China

and

few

have

that

tions

other

na¬

bulldozers

faith

of

and

bulldozers.

know them

men

But

you

better than I do;

daily
work
is
to
move
capital equipment. Of Your
it doesn't provide ade¬ mountains and fill in valleys; to
quate
food,
clothing,
housing, divert rivers or to tunnel;under
medical care, or other necessities them; to build dams and bridges
and

other

course,

which boil down to the idea eignty question necessarily - pre¬ them
today, there is no impedi¬
less government inter¬ sents emphasis on the
and
luxuries ' that people want. and roads. If there were no men
conflicting ment to the attainment of
an
feres with business, the better for claims of each
with bulldozers—if there were no
system to suprem¬
enduring, peaceful and prosperous But, even so, it definitely does
all. By then, the Court had firmly acy. It is not
able, within its lim¬ nation
full
employment
for heavy construction industry—our
through continued reliance provide
established the principle that any ited function of
adjudication, to
everybody — including the old present rapid progress toward a
that

the

state law
commerce

which affects interstate

to such an extent as to

upon

picture the large
ciliation

and

of

areas

recon¬

through

progress

Vegulate it, is void. This doctrine cooperative effort and the exer¬
permitted business interests to cise of powers possessed by each.
spread over the country without We have more and more come to
much regard to state

lines.

However, with Congressional en¬

understand that the national gov¬
ernment and the states need not

dual

our

system

of

sover¬

women

Russia who sweep the
Moscow
with
crude

in

streets

eignty.

of

brooms made from tree branches.

Salomon Bros. Places

"***.

'

*

'

'

'"

«'

■*

kind -" in

98% of that necessary in
theory and in result this dual quire a membership in the New
Chief Justice Fuller, system of
sovereignty possesses York Stock Exchange and will be¬
speaking for the Court, reached the necessary degree of flexibility come a partner in John J. O'Brien
this result by labelling the effects to meet the crises of
the present & Co., 231 South La Salle Street,
of

producers

and

future

as

among the

states has met them
and, therefore, be¬ ceeding now
yond Congressional power. Addi¬ preme Court
tionally, manufacturing was held that in the
commerce

upon
as

"indirect"

not to be

commerce.

of cases, the Court

duction

and

In

a

number

held that pro¬
along with

mining,

manufacturing, were subject to
regulation and taxation on
the
ground that such activities
were purely local
and not inter¬
state

state

commerce.

In

following this

reasoning, the Court, in 1918, went
so

far

as

to

hold

that

Congress

could not bar from interstate




com¬

seditious

there is

by

the

successfully
in the past.

A

pro¬

Midwest

the

Stock

illustrates

the

important
for

area

of

and

Jacob

I.

Treff

is

1195

Sherman

Avenue,

Amicus

Curiae,

has taken the
position that to warrant a holding
that
state
legislation which
is
a

valid

police
or

exercise

power

has

suspended

of the

been

by

an

is

in

less

February
after

a

Baylis

Bronx,

15th

at

passed

the

age

that

he

Finch

Wilson

&

Delafield.

was

I

associated
and

invent

we

and

*

unless

: for

sud¬
-

•

.

accomplish
under¬

discuss

minutes

we

with

you

the subject of

could

prayers

for

a

faith,

ing
near

her

night,

that

of

the

mountains.

move

cided to test the

re¬

came

attitude

of

working in his

day when the minister

parishioner "That's

garden

and

you

the

a

Lord

fine

have

there."
The

gardener

know.

But

what
the

a

Lord

it

was

replied:

"Yes,

I

should have

you

mess

seen

when

only

was

working

it!"

Well, I'll also
alone is

not

agree that faith
enough, and that it's

pretty good idea to have plenty

of earth

when

moving equipment handy-

you've

For example, it has been my
pleasure and privilege to help'
make many agreements with you

removal

she

In

de¬

idea by request¬

of

a

small

hill

in foreign countries. Now suppose
I had

and

no

faith in you as honorable

dependable

home.
course

*An
Moles

Feb.

2,

address
Aw^-d

1956.

by

Mr.

Dinner,

Fairless at the
New York City,

persons.

there would be

with

&

the

was

by. The good reverend said

his

to

who

one

have

away

74

appreciate

man

garden

bulldozers, and progress. And I'll contractors to "move mountains"'
begin with the . little girl who for United States Steel through¬
was
told in Sunday School that
out our own country, and even
her

Delafield

a

got a mountain to
faith in it, and move. But let's not sell the faith
all laws and customs that part of that combination short. ' •

it,

to

few

the

a

*

never

can

you'll

design

wfill do more work

objective

faith

brief illness. Before his

tirement

to

time.

But

like
a

William Baylis
William

stop.
Faith

discourage it. That's why I would

conducting

to

will

general

machines that

oppose
-

notwthstanding New York.
legislation. Thus, the
as

that

stand

example, securities business from offices at

for legislative action

Government,

superseded

York

Jacob Treff Opens

view

in the Nelson
case,

otherwise

New

Exchanges.

states,

Federal

state's

of

it members

pending in the- Su¬

activities,

room

as

living

*

;T;Some day, I predict that

control

combination

den

of

come

./Now, some of you may be of
man¬ the
opinion that, in this combina-^
finally tion of faith and
bulldozers/ the
understand that the purpose
of
bulldozers
contribute
more .* to
the capitalistic economy with its
progress than does faith, if so*

Pfd. Slock and Notes

product.

the

would

"•

Salomon
Bros.
&
Hutzler
on
into fields of comprehensive and should not be regarded as
regulation of economic enterprise, competitors for authority. Rather, Feb. 28 announced that it has ar¬
beginning with the Interstate wisdom has dictated that we rec¬ ranged direct placement of 224,- free and competitive market is to
Commerce Act of 1887 and the ognize two levels of government 880 outstanding shares of Kerr- provide everyone with maximum
Sherman Act in 1890, the Court cooperating with or complement¬ McGee Oil Industries, Inc. 4J/2%
goods and services at a minimum
proceeded to set up state power ing each other in meeting the cumulative prior preferred stock amount of labor. That is exactly
as a
limit upon the scope o*f na¬ demands upon
both.
Especially (par $25) and a new issue of $5,- what it does. And when enough of
Thorp
Finance Corp. us finally grasp the full meaning
tional legislation. The Sugar Trust significant has been the increased 500,000
decision in 1895 is illustrative of recognition of the importance of (Thorp,
Wis.)
4%
promissory of that idea, we can then devote
notes due Feb. 1, 1966. the Court's new concept as
it af¬ state and local governments as
our
united thoughts; and efforts
fected
Congressional legislation. essential and necessary elements
to doubling our production and
John J. O'Brien Partner
standards of living while steadily
Here, the Anti-Trust Act was held in an effective system of govern¬
not to apply to a combination of ment*.
CHICAGO, ILL. — Philip W. decreasing our hours of labor.
sugar refiners who were conceded
Experience has shown that both Smith, Jr. on March 1st will ac¬ The only possible way we can do

of

standard ;

everyone

Capitalism's Progress

try

to

better

no

Well, of
contract

—regardless of how much equip¬
ment

you

owned. The mountains

vtHUUM nihi

Number 5512

Volume 183

would continue to
ful scenery,

.

.

provide beauti¬

we'll invite

faith

if you had
the * management

turn,

that

United

its agreements, you

of

nest. •
The

wouldn't even

heard

moving mountains for

talk about

how much we
might want them moved. It works
both ways. Without this mutual
and

faith in the intentions
bilities

each

of

would stop.
I

other,
• *

'

doubt

bulldozers will

faith and

of

tinue to

*

'

move

no

planes,

them? There
tion

would

That5

industry..

holds

<

***»»

feW^AtS^tv

he

can

priest replied:
fight."

we

took
over

where

the

her
into

owner

else

on someone

work for

him.

Phil

men

illustrated

by

a

move

Catholic priest and a Protes¬
a prize fight

will

Well, I'm

heavy construc¬

understand

good

works

won't

almost

can

hear

in

a

of

some

puzzled

re¬

sermon on

faith."

Understandably,

-

the

"A

sermon?

Award

Moles

left his

he

As

to

fighters

of the

for the first round,

corner

crossed

turned

one

himself. The
the

minister

and

priest

asked:

When

her

cold

But

you

she

does,

with

free

our

I

am

form

of

confident

govern¬

that

the

always results from

that combination will continue at
an

a

Moles

will be

with

your

leading the

John H. Kaplan Adds

The

MIAMI

this

Ben Fairless!"

&

Co.

of

members

of

the

Exchange,

an¬

Stock

To¬

the formation of Goodwin
& Co., Inc. located at 149

nounces

Harris

Broadway, New
new

firm's

will center
lor

York

City.

brokerage
on

The

operations

Canadian securities

banks, brokers and institutions.

Chester

Schneider, formerly
of

the

Canadian

Stock

Department of A. M. Kidder & Co.

stop

can

Harris

Ontario,

Toronto

manager

way.

(Special to The Financial Chronicle)

you

ronto,

as usual,bulldozers,

will

At >

Goodwin

increasing rate. And

you

reply: "Yes.
haven't heard the most
part yet — the
was

our¬

American

progress that

BEACH,

Fla.

—

will

be

the

Goodwin

Mrs.

General

Harris

New York.

Frances T. Petras and Mrs. Janice

&

Manager of

Co.,

Inc.

of

*

Opening-of the

new

firm

was

M. Freeman have joined the staff
of John H. Kaplan & Co., Hotel

;

previously reported in the Chroni¬

Fontainebleau.:.

unbelievable

preacher

progress.

have faith in

competitive economy, and in

Dinner?"

exclaim:

we

i

tGo., Inc. in N.Y. C.

of trying to
Without faith,

the

ment,

For«i Goodwin Harris

This

one.

and

;

wife

no

selves, in each other, in

you

like

use

way

point:

be

But since

voice:

"Well, it sounded sort of

my

one
can

preacher and this
even
though we

—

doubtless

merely

there

no

sermon

all

make

that

•

I

no

could
is

mountains. Progress

any

if

quires both faith and bulldozers.
Now when you go home tonight,
your wives will naturally ask you
what kind of a speech you heard.

friend,

Murray. As he told

also

without

faith

answering

do-it-yourself spirit

well

tion

"It

33

cle of Jan. 5.

.

v

\

had T
air¬

From

Studebaker-Packard

Corporation

*•

J«

••

• •

avia¬

no

idea :

same

the ^automobile,

for

true

be

sons:

morning,

the

waiting

together.

pilots who fly

the

in

his

tell

lark

same

also

a

think that will help him
is

The

tant minister went to

any

suppose we
the builders of

in

or

lark

and moved

field

do his

it,

con¬

example,

faith

no

night,

the late

moving. And

For

the

favorite story of my good

mountains that
of the two, I
suspect that \faith is the more
important.•
need

farmer

ones

This

is

"Do you

any?"

.

afternoon,

tomorrow

still

was

to

I have

be.

the

another

capa¬

progress

this .combination

that

but

M

(1081)

You tunnel and

That
young

that
among
you
excavators and
builders, * your word has always
been better than gold. I am sure
it will continue to

come

ourselves will harvest the wheat."

report

to

pleased

am

..i

next

"Early

of

us—regardless

to

Again, the lark sat tight in her

no

keep

would

Steel

States

relatives

our

and help us harvest the wheat."

but nothing else.

in

t

The Commercial and Financial Chronicle

.

*

And,

•

construction, and all other indus¬
tries.
r

Suppose

the
to

of

management
business.

Thus,

careful to keep

ways

if

•—even

As

it

is

make and

costs

al¬

keep

enjoy

rather take

—The

EVERY

IN

high taxes and high

taking
But

contract.

any

Studebaker for 1956

to

these days

money

I CHOICE

own

easy

for everything. So we

exactly

NEW

so.

your

too

not

EXCITING

be

are

promises

our

from

it's

—what with

soon

we

costly to do

know

you

experiences,

AN

ability of
S. Steel

U.

them. We would

serve

out of

lost

customers

our

faith in the intent and

don't

loss

ijf

lip J> 1 < fv

„

dii

OTliJj"

on

would

far

a

we

Outstanding Car In the Low Price Field

monetary loss than
to go back on our pledged word
and have

a

customers lose faith

our

—Each

in the integrity of U. S. Steel and

its

management.

when

For,

steel mills and

new

with

—Each

built

bigger and better bulldozers. But
it is far

that

destroyed faith.

a

Role

of

as

that

Just

apply

I'll

to

25

idea

applies

just

government.

a

for

I

years,

to

going

ton.

But

of

ness

Now,

of

most

haven't

the;

always

I

of

have

time

no

in the

essential

political

our

I

i:*.r

ever

sound¬

and

system

NEW

ability to govern ourselves.

our

Packard

especially appreciate the value
stable government with its

our

orderly elections when
the

situation

of

them,

anarchy
Others

—The

of

retarding

dictatorships. In both

brutal

have

ernors

people.

little

;

"

faith

a new

that the American motorist is offered
choice of distinctive

class—each with

cases,

governments, and'the

Studebaker-Packard, the Bold New Idea

means

near

most
of the people have little faith in
their

Luxury Convertibles

V?
At

progress.,

by

governed

are

in

now

conditions

are

^<xnMeoM.for 1956

Ultimate

I look at

existing
in
foreign nations. In some

various

Fine Cars

/

a

everything that's
down in Washing¬

on

at

lost faith

1956

New Standards in

does

so

been happy with
been

—Setting

Government

that

admit

past

by the company

brings you the newest

advances first!

person or a company,

it

personality

PnrkjQJudL for

difficult to rebuild

more

a

unmistakably its own

happens to a company or a per¬
son, they're both through. We can
always build

car

that

cars

in every

price

product advantages made '

possible by unique flexibility of production.

gov¬

the

in

v1

'

Progress
When that mutual faith is

com¬

there can be little
or
no
progress. Even a plentiful
supply of bulldozers and other
pletely

lost,

CJjjpjpSLTLfor 1956
-America's

capital goods aren't of much value

Finest

Medium

Price Car-Built by Packard Craftsmen

at that

point. Again, there can be
real progress without faith.

no

And

won't

also

again,

faith

alone

.r»

bring progress unless it is

shored up with a generous portion
of the do-it-yourself spirit. That

idea

was

spelled

out

some

2,500

by Aesop in his fable

ago

years

about the lark that built her nest

in

the

middle

cf

Torsion-Level Suspension makes

wheat field.

a

possible

One day as the farmer and his
sons

were

looking

friends

to

we'll

and

come

tion
the
war

A

but

didn't

wheat
in

no

field.

one

of the major

help

engineering advancements recently

us

pioneered by Studebaker-Packard —
and

the

It is

our

invite

harvest the crop."
The lark heard

smoother, safer ride

leaf springs.

ripening wheat, the farmer said:
"Tomorrow

a

through the elimination of coil and

the

over

The

inspired by the Bold New Idea.

conversa¬

bother

to

She

knew

leave

—America's

"for 1956
Newest

and

Hottest Sports Car—Room for 5

1

she

danger.

PACKARD

•

C^l_l

couple of days later, the lark

heard the farmer say: "Tomorrow




Outstanding cars in every price class —products of Studebaker-Packard Corporation

Passengers

34

The Commercial and Financial Chronicle

(1C32)

Continued

from

page

. . .

Thursday, March 1, 1956

3

i

AUTOMATION

is a

MUST

POPULATION INCREASE BY AGE GROUPS

1955

mmmwm

1965

-

CHART IV

POPULATION
OF

THE

UNITED
STATES




CHART II
iVA >L ABLE,

M A N PQWEB

WILL. Jt f Sj.

14%
1965

CHART

V

TOTAL

NATIONAL

OUTPUT

INVENTORIES

Number 5512

183

Volume

.

.The Commercial and Financial Chronicle
months

services,
with
attendant
high
levels
of
employment,
income,

ly
are

from today's $36
level to the $50-$55
dividends should in¬
crease
to between $30
and $35
from today's $21 plus level.
Thus, the normal value for the
Average stock (Dow Jones In¬
dustrial) should easily rise to 700
increase

while

because all basic industries
longer recording rising
As the famous First Nation¬

al City Bank's February

"Some

sectors

expanding
Some, like
housing, may be nearing the end
of their adjustment period. Others,
like automobiles, are now in the
adjustment process.
Still others

r -

"restric¬

are

few contract.

a

have several months of

may

tained operations

"Letter"

states:

ahead

gains

or

before

downturn

a

How

sus¬

further

even

A

occurs.

few1 may

go

1956

without the pains of
ment.

through
adjust¬

short,
adjustment"
effect

net
or

is

may

gradual

a

the

on

another "rolling

under way.
The
be a gradual rise

decline,

relative

depending

strength

involved.

forces

re¬

In

the

of

any

in

the

industry

and

weakness

of

segments

trade does not

t

"In

simultaneous

major

35

to be at hand

seem

in

sight.
»
"In general, business confidence
remains high. Actions speak loud¬
or

er

than

the

Within

words.

past

the

month

steel, automobile, and
Continued on page 36

case,

things at

are

prices could

stock

and

monetary

1955

no

sales.

share
area;
and

more:

the

policy, and very like¬
moderate tax cut by mid¬

a

year,

per

or

by

tive" credit

spending, saving, etc. More par¬
ticularly, corporate earnings, as
measured by the Dow Jones In¬
dustrial
Average
stocks, - should
easily

ahead

authorities of their

(1083)

decade.

well double over the next

1956—Business and Stocks

CHEMICA L?

"Rest-j
;

ing" in Broad Trading; Range

So, while it's pretty clear that
need not fear prosperity, nor
the stock market for the longer

we

"

term, I think it is about time wq
down off cloud No. 1956 and

came

check No: 1956

little closer. Let

a

therefore, get right into a
dynamic analysis of today's busi¬
ness and stock market conditions.
this

V

and evaluation.

analysis

constant

Stripped to its basic essentials,

.

turn. .Investment risk

reduced

return increased

and

»

•

,

r

-

And

through research,

so

basic

facturing and processing that

f

you

can't

indirectly.

or

processes,

contributing

is

or

more

accounted for the Com¬

growth where it begins-—at the level of production

manu-

even

farm

pany's record performance last year. They can see

than 3,000

more

almost all

to

Chemical

Allied

year

a

products and

new

More than 30,000 employees

f

■

business,

a

to American progress.

Annual Report, 1955

v

.

each

by

and service. Here's what

count

I: the end products irv which they are employed. What

say

section of

a cross

about developments in 1955

they

as

people

our

saw

them.

i

*

;

>

look -at each
research area separately first and
then bring them all, together ta
calculate
a
logical * investment
management policy for today./,/;
Therefore, let

-

.

products—products

pf research: (1) ; Business Condi¬
tions, (2) Security Valuation Re-i
search, and
(3)
Security Price
Action Research.

;

•

combination of three basic areasi

a

:

is that scarcely

-you can say

family is not served by Allied, directly

highest sales and net income in

!i Allied plants'last .year turned out

best be;

can

;

Allied

and

V.

..

formulating investment policies is
q constant calculation of <1) how
jnuch risk for (2) how much re¬

during the fall of

1955,

history. Sales and operating revenues in 1955 of
$528,514,087 were 18% higher than in 1954."

organized PLAN of

an

throughout

its

■i

continuing problem, one

must have

sustained^

.was

Chemical enjoyed the

/

us,

For

The industrial upturn which started

-1954

us

•,

1

"*7-

Business Conditions
To get a

quick view of the past,'
indicated future- bpsi-?
scene,
let us look:"at our
econorry s
TOTAL supply • and
■

present and

(

\

ness

..

demand picture at this time.
shown

•shows

Chart

in

V.

This

It is;

the total

supply of all the
services produced for
sale in this country since 1951 and
the total purchases, private buy-;
ing and government buying. -The
difference

sents the nation's
.

total

between

purchases, -obviouslv,

/and

>

tion.

'

•;

4 "• ••

the

over

search

"1955

was a

'

Cales Manager,
Barrett

'

r

busy

output
repre¬

thetic

Pipefitter, Mutual Chemical Di¬
vision, Baltimore, Md.
Mutual

with

been

"I understand

General's

Texasand the Southwest is well in

growing market.
Barrett's two modern plants in
this area are providing fine cus¬

for chromium chemicals has

most

important

new

products—Genetron refriger¬
ants and aerosol propellants."

tomer service."

.

"I've

23 years

we hit the highest
production and sales in
our
history. Here we've been
running at capacity making

stride with this

process,

expectations.'!

Operator, General Chem¬

Division, Baton Rouge, La.

levels of

'"Building materials business in

which I'm»
proud to report has exceeded

suggests,"

ical

Houston,

at CRL.

•

phenol

Process

Bldg. Materials,

Division,

Texas.
year

We made great progress on a •
number of new research proj«;
ects. I worked on our new syn¬

inventory situa-

clearly

■

JAMES W. BUCK

ANDREW D. BURRIS

v

NORTON ROBINSON

Chemist, Central Re¬
Laboratory, Morristown,

N.J.

■.

V

Chart

As

GRIFFIN

Research

and

goods

WILLIAM

<

chart

one

of

tion

and this past

our

busiest with produc¬

full

at

over

year was

capacity. Demand
cer¬

but our produc¬
keeping pace."

tainly

gone up,

tion is

,

last couple of years, we

fiave been enjoying the ultimate
in dynamic prosperity, substantial
hand-in-hand - growth in output

WW/.

<)

i

t;i§

pnd consumption, provided .by exr<

panding private business without
-

inflation

-

undue inventory ac¬

or

cumulation.

It is also pretty- clear, however,
we can't keep going forever

,

.that

at.the two-to-three-times-normal
business
pace
of the last year..

though,- is the factthat a balanced weighing of all
'the evidence at hand currently—
on
new
orders, production, em¬
ployment,
income, savings
and I
debt, prices, consumers' and businessmen's
spending
intentions,
and practically all the other basic
Equally

>r

economic

factors

that

strongly indi¬

—

total

^consumption

production, and

will

continue

high:

-for 1956.
I-

/")
"

true,

,

cates

4? */ -/c V

\

Specifically,

with

;

GEORGE HARRISON

HERBERT S. KISHBAUGH

Superintendent, Wil¬
putte Field Construction, SemetSolvay Division, Chicago, 111.

Salesman, Solvay Process Divi¬
sion, Boston, Mass.

ROBERT A. LEMLER

JOYCE E. SHAW

Laboratory Assistant, 'National
Aniline Division, HopewellChesterfield, Va. ?
"Here at Chesterfield we kept
to a busy pace in '55, bringing *
along Allied's most important 1
new
product,; Caprolan. My '
job is testing this new nylon
and, from what I've seen, I
think we have {a winner."

t

<• •

♦

•

*

-

"

*

*

Assistant

Division,

Salesman, Nitrogen
Omaha, Neb.

.

*

.

\

'

v

/'Nitrogen made great progress in 1955 in convincing farmers;
that fertilizer grows farm profits.
Our field is very competitive,
but

)

Arcadian

is

fastest

the

growing brand in the business
territory."

in this

Wilputte coke ovens
put into service in the U.S.

"More
were

in

new

1955

than

in

any

previous

That speaks well-for the
design, materials and construc¬
tion of Wilputte equipment."

year.

"Sales in my territory of south¬
Massachusetts and Rhode

ern

Island hit

Solvay's
have

a

been

peak in 1955.
chloromethanes
well received

new

new

very

here.

No

was a

banner year

doubt

about

increasing

tures—an

......w-"

capital

FINANCIAL HIGHLIGHTS FOR 1955
Net

earnings—$52 million—$5.72 a share
($5.45 a share after stock dividend)

•

expendi¬

all-time high gross na¬

tional output of around
lions

$400 bil¬
certain for

quite
1956, probably achieved in
pattern of a shallow saucer.
appears

•
J

the
'

•

*

Our government recognizes, too,
that times are good, and wisely
i

»
<

has

taken

positive action to

pre¬

prosperity by attempt¬
ing to slow down those aspects of

serve

our

y

New plants
million
\

■

high degree of confidence in the
ability of those leaders in govern¬
who

manage

our<

nation's;

budgeting and monetary affairs to
out" today's.good busi-'

V#

Cash dividends continuously for 35

plus 5% in stock, to
than 29,000 stockholders r •
1955: $3.00,

would

be

normal,

therefore,
over the




years—in

detailed account of

progress

find it in

more

yours

•

made last
our

year,

New York City,
Monday, April 23,
1956at lp.m. All'
way,

^

you'll

stockholders

Annual Report—

are cor¬

dially invited to attend.

for the asking.
4

~1

A

'

nemical

\
DIVISIONS:. Barrett

"Chemicals! or American

CORPORATION

& DYE

ALLIED

(lied
p»

ness.

It

be held at 61 Broad¬

quick picture. If you'd like a
more

Meeting

of Stockholders will

diversified, too active for any

Research and Development—$16 million

^."stretch

to expect some relaxing

The Annual

Allied Chemical is too

and equipment expenditures—$54

it that might otherwise go too far.
The financial community has a

ment

'55

government-

increasing
moderately
private
consumption, still;
pointed upward — and recently
reinforced by rising new orders
spending

and

and

it,

in Solvay."

Progress"

J
'

'

General Chemical

.
•

61 Broadway, New York 6, N.

Mutual Chemical > National Aniline

•

Nitrogen

•

Y.
Semet-Solvay

4

>
•

Solvay Process

*

International

36

The Commercial and Financial Chronicle

(1084)

Continued

jrom

page

of this chart's construction at this

other

dollars.
these

of

The

value

Normal

the

for

let

risk

market

that

say

me

in

holding

manage¬

firms are
willing to put huge sums into new
plant and equipment in the ex¬
pectation that there will be a
prosperous
and profitable econ¬
omy in which to sell the goods
these facilities will produce.
In
maintaining a high level of in¬
vestment, they c help Sustain the
prosperity they anticipate."
Thus, it seems fair to say that
the
current
business
picture,
while no longer booming, is good"
•—enjoying a healthy rest this
large

generally 7 is slight when
cyclical stocks as a class are act¬
ing better than the market as a

For the present,

however, the

the

extreme

the

undervaluation1

of

past,

particularly since "the
fall of 1953.
Now, the Average
stock is "confidently" priced be¬
and

normal

tween

"exuberant"

levels; not ^wildly" priced

as

to have "rolled over" and

seems

is

gradually

tained

prosperity., We have suc¬
expanding the scope of
free enterprise and yet increased
the sense of security that people
need
in a highly
industrialized
ceeded in

age.
7- >7' 7<V
.7 ;;.
5";"Taking recent ^ developments

all' together,

yet

equipment,

drugs,

-

we

are

our

stocks

because

investment
find

the

areas

one

can

to 7f

vorable

in

1929.

7 Of

all

past several months,. I believe^more-stable-type Conclusions and Indicated Invest¬ and 1 think he .would
agree—this
ment Policy for Today
Thus, while relatively few
one
is the most significant one
stocks have formed major distri¬
,7 So, it seems to me, that along for all of us to remember over the
butional tops in this market so with this
more
specifically indi¬ days and months ahead. 7 * 7:
7^
far, it must be watched carefully cated investment policy for today,
for opportune "cross-overs" to the
these concluding thoughts should
less advanced, lower risk, sound
be kept in mind. 7 7,
"-77:.;'7.7

.

Customers' Brokers

;

—

for the last 15
years,

larly

so

but particu¬

beginning in the fall

1953 when the

Average stock

of

was

details

lObviously,

and
most
significantly,
there are many individual stocks that are
still
clearly
undervalued
around
this

Average,
ones

clearly undervalued.

the

this

just

that

are

as

there

clearly

are

numerous

overvalued

many

in

stocks and groups of stocks

this

market

which

appear

Association of Customers'
has
announced
that > a

Brokers

special speakers' committee of 10
has r been > arranged
to
make
speakers

available

>

For

example,

we

still

think

"Foresight has helped
tion make
years

a

charges for the talks as each
speaker gives his services to help
the

public

obtain

our

they

speakers'^ committee

balanced and

sus-

send

a

tact,^Justin

Jacobs, Chairman of
speakers' committee, Associa¬

the

tion

of

Customers'
Brokers, 25
Street, New York 4, New

Broad

York.

7!77r7!7':|'7;7

Officers

-

the

of

Association

are

Nicholas E. Crane, Dean Witter &

Co., President; Albert F. Frank;
Ladenburg, Thalman & Co., VicePresident;
Gerald
L.
Wilstead,
Hallgarten;& Co., Treasurer; J.
Harold 7

Smith,
Hirsch
&
Co.,
Secretary. ■ 7-;7|7: 77 7^;.. .7:7 7' ;7/;

7

Henry Montor Branch
CHICAGO,' 111.—Henry

7

Associates,

Montor
Inc.,, members of the

New

Stock

York

opened
South

Fish

Exchange, have

branch

a

La

Salle

is

man

office

Street.

at

134

Seymour

Vice-President

in

charge.

With Investors

Planning

(Special to The Financial Chronicle)

BOSTON, Mass.—Vera Franklin,,
Hutchings and Miner
Trowbridge have joined the staff
Lawrence A.

of Investors Planning Corporation
New

England Inc.,

68 Devon¬

Slayton Adds to Staff

7

(Special to The Financial Chronicle)

CHART Vn

ST.

LOUIS,

Mo,

Esther

—

A.

Kaltwasser, Walter H. Keller and
Clarence

HOW

THE

Theobald

with

have

be¬

Slayton

&

Company, Incorporated, 408 Olive

{

HIS

L.

affiliated

come

INVESTOR

CHANOES

STOCK

The

own.

will

representative to any club, lodge;
social, business 7 or professional
group in the Metropolitan area.
•
Interested groups should con¬

around

Average.

VALUE
THE

view

free market

a

na¬

too

OP

factual

a

of the operations of
in the securities

shire Street.

CHART VI

NORMAL

interested

no

great strides in recent

toward

to

groups and answer their questions
on investment matters. There
are

of

Conclusion

to

be picking up forward momentum
at this time.

If;

Speakers Service
77 The

.

into

Street.

MIND

MARKET
Phila. Sees. Assn.
PHILADELPHIA, Pa. — Mem¬
bers of the Philadelphia Securities
Association

.OW-JONH INDUSTRIALS

will

be

guests of the

American Marietta Company
luncheon in the Barclay
PERCENT

-loot
CYCLICAL
STOCKS

on

at a
Ballroom

Tuesday, Feb. 28 at 12:15

The

p.m.

speaker will be Robert E.

90

Pflaumer, President, who will dis¬

80

cuss

-

the outlook for the company.

70
■

00

Three With Wayne Jewell

00
■

40

DENVER, Colo—Wayne Jewell

30

Company, 818 Seventeenth Street,,
announce that the following have

20
■

10
law

1 see

iaza

i»o

ism

ism

i«« 1935




iw

ish2

ism

19w

ims

i960

1952

issh

1955

19&6

191*9
1967

7

advanced

-

going

|

quotes attributed to
Eisenhower
over
the

the market's former leaders to the

less

-

the

President

v

Without

fa¬

economic

vestors.";77.7';-77;:7;.'7;7

low investment risk.

-

strong uptrend

e r

sumers,/workers, farmers, and in*

good income and

Obviously, if investors continue
CONFIDENT, the Average stock
could rise to a dangerous (at this j
time) level of over "500." Equally dividend paying stocks. " 7
Over-all investment policy, on
most ■■■ prosperous periods due to obvious is the fact that if invest¬
Significantly, there is no dearth the basis of currently analyzed
of such v opportunities today be¬
the powerful forces of population
ors
lose
their" present CONFI¬
evidence,
should
be
generally
growth, technological and pro¬ DENCE for any combination7 of cause only about a quarter of the cautious as one watches how the
ductivity advances, and the great reasons (i.e. political or money listed common stocks have risen current
"levelling off" period de¬
need for public and private
cap¬ and credit pressures), the Aver¬ substantially, while nearly a third velops.
One 7 should 7. not
be
ital investment.
age stock could have a "bear mar¬ of the issues are still selling below
"scared," however, because the
So now what is this kind of an ket" tumble. While this is possi¬ their last bull market highs of
1946, total evidence still suggests that
economy worth — its earnings, ble,
the solid base of Normal with the rest of the stocks priced in your— -77
':;V7-77'7'v' V|7 7'.':"
dividends and money rates—in Value is still rising and so close somewhere in between,
Such a
Applied investment policy you
terms of stock prices?
below present prices that such a "spread" in stock prices, reflect¬ are entitled to retain
a
healthy
development seems
improbable. ing- as it does the modern day; position
in
carefully
selected
Values in Securities
More probable, it would seem on "breaking up" of the old fash¬
stocks. As you apply this thought,
You are all familiar with
evidence, is a trading ioned business cycle, of course,
the factual
however, may I remind you of
general position, trend and im¬ range
of
5%
to
10%
swings presents great opportunities for these basic facts. One invests for
portance of corporate earnings, around
"460"
for
the
Average changing investments by the pro¬
only two benefits: (1) income and
dividends, book values, earnings stock during the 1955-57 period fessional
manager
of
money.
(2)
capital increase.
The first
ratios, money rates, yield spread, —similar to the 1951-53 period.
Frankly, we rather welcome these benefit is
continuously available.
etc.
in
connection
with
stock
Thus, at this time, it is quite changes in the market, and are The second investment benefit is
values.
clear that the No. 4 factor deter¬ constantly alert for them because
'7.
intermittently available. For quite
Obviously, -1 cannot show you mining stock prices—investor sen¬ they have already allowed us dur¬
some period, as we all know, stock
all the charts we
keep on all these timent—as opposed to the value ing recent months to (1) take investors
have
been
receiving
factors to enable us to establish factors of
some substantial profits in certain
earnings, dividends and
both benefits of investment in his¬
intrinsic values for hundreds of
former market leaders, and (2)
money rates, is highly important
torical abundance.
Both benefits
individual stocks as well as for because the value factors in gen¬ buy others of
equal'.or better still
appear to be available on a
the Dow Jones Industrial Aver¬ eral are
"confidently" recognized. quality which are paying a high¬
highly selective basis; but we
age.
In this
latter
Thus, without much expected in er income mid appear to be in a should
connection,
begin to condition our¬
however, a lot of people say the the way of change in values for much lower investment risk posiselves — both
as
managers
of
"market" is too high because this this
tion.77>
7 777:7; '7-7-7
year, the Average stock could
money and as investors—for a pe¬
stock Average is
historically high range quite a bit in price—if in¬ $ As the year progresses, several riod in which it
may be prudent
in price.
I do not
think very vestor sentiment should change. other favorable investment port¬
to
"rest"
our
money
while we
much of the Dow Jones
Industrial What is the outlook for investor folio shifts should present them¬
pleasantly enjoy mainly the con¬
Average as a stock market index, sentiment?
:
/>7:77777 selves if one is alert to the con¬ tinuous benefit of income, so that
but it is easy to show that
at
tinuing Character Changes taking in
due time, again, both benefits
The Technical Price Position of
around 465 these
days (when I'm
place in the market; some stocks
of investing can be received in
writing this paper) that even this ,7-." :':77;'v;.7
are
Stocks
beginning to lose (or have
really historical abundance over
"blue chip" Average is not
too I | The "trading range" probability lost)
their 7forward momentum
the promising decade ahead.
high.
"High," of course, refers indicated by Business and Value just as others are turning up. V,
.7'
In this general connection, we
only to price (465), so I ask, high analysis
discussed
above .is
'( For example, I call your atten¬ know that President Eisenhower
to what
earnings? dividends? strengthened by,:an analysis of tion to the fact that as far back as
has
for
some
time
been
fully
assets? money rates?
the market's
(sentiment) inter¬ last April, the best acting group aware that his decision
as
to a
Let me summarize our
nal price position, too.
of stocks in this bull
work in
market, the second term is one which we anx¬
this connection
Chart VII shows the changes in aircraft
by referring to
stocks, broke sharply to iously await.
With this in his
Chart VI which is a mathemati¬ investor preference between cy¬ 1955
lows, and very likely have mind—as well as in all of ours—
cally computed normal valuation clical stocks, which tend to have lost their forward momentum. A
I feel very confident that, what¬
of the basic value
factors affect¬ relatively wide swings in earn¬ few months back, the auto's and ever he
decides, and no matter
ing the Dow
auto
Jones
Industrial
equipments lost their for¬ what
the
immediate
ings, dividends, and prices; and
reaction,
Average.
ward momentum; and
very likely there will be no reason to change
between investment stocks, which
the steels are in the process of
This Value chart tells us
the following conclusions which
many tend
to be more stable with re¬ so
doing, etc.
things, but here are the most sig¬
the President transmitted with his
nificant ones as I view it.
spect to earnings, dividends and
At the same Average level in Economic
Report to Congress on
the market, however, there are ? Jan. 24 of this
Normal value for the
prices.
year:
Average
a

t h

stocks.

year—preparatory to the decade
ahead s which
generally
gives
promise of being one of America's

stock has been in

will; remain

ur

growth; / 77
7''*'7
t
77"Great 4 qppprtunities lie aheatj
forVAmerican -"businessmen,"' icon-

manager's
goal—the stocks with the highest

shifting from

be

lying iconditons

investment

combination of

employment,
and7 income
broadly sustained during

will

Funds where

that

reasonable," to

the coming year, and that under¬

are

show that currently it is in these

a

tion,

and

appropriate
comprehensive analyses

it' is

expect that high levels of produc¬

Certainly that is what

doing in

common

...

,

capital

and

electrical 7 equipment

electronics.

"character change" in the market
is developing — investor prefer¬
ence

lot of good stocks to

buy

machinery equipment; and in such
growth industries as oil, chemical,

.

Average stock has caught up with

a

railroad

common

stocks

Average

.

are

and

if one looks
around carefully in such stable in¬
dustries as retail trade, utilities,
tobaccos and food; in such "de¬
pressed" industries as farm equip¬
ment, air conditioning, natural gas,

whole, and that greater care and
stock, however, is "levelling off", a reduction of risk position is
at the currently computed figure desirable when they begin to lose
of 456; but the trend of value is their above average performance.
still rising moderately.
As
Chart
VII
It is ex- '
clearly shows,
pected to pick up sharply later in since: last
July-September
the
this decade, rising to around 700 • forward momentum of the estab¬
lished. leaders
by 1965.
(cyclical 7 stocks)
■>

important industries have
announced
plans for expansion
and
modernization running into
ments

own

time,

Stock Maiket Outlook in 777
1956 and Next Decade
billions of

there

extensive
research on the relative price per¬
formance of cyclical stocks has
rather
clearly shown that the

35

Thursday, March 1, 1956

I960

1951

1952

1953

1954

I.'

1950

1957

(lojf

joined

their staff

nffir-P-

1955

Donald

at the Denver

Carnenter.

Victor

Number 5512

Volume 183

...

"

B. R. Glass WHh
General
Bernard K.

-

pointed

The Commercial and Financial Chronicle

General

Pub. Serv. Securities

and

Manager

•

Offers Southwestern ^

been ap-*

-

Service

ufacturers

Corporation, man¬
marking
imple¬

of

«' The

-

$25

subject
prices

T. S. Jenks Willi

called

Jenks, Kirkland Go.

are

accrued

prices ranging downward from
$26.25 per share through Jan.4 31,
1961 to $25.50 after Jan. 31, 1966.
Proceeds from the sale of these

securities

entirety

to

optional

scaled

from

during the

They

have

been

in

applied

large part

in

toward

of bank loans, which
made

in

electric
which

to

enable

includes

the

Oklahoma
Plains
Pecos

ginning Feb. 1,. 1956 to the prin¬

Conway Road under thb

rection of Stan

trans¬

)

E.

di¬

Comstock.

the

Texas

.'■

«

•"

V

Alex. Brown Branch

territory

a

ico.

Panhandle,

region

Valley

The

TOWSON, Md.

and

—

Alex. Brown

31,

con-

contemplates

approximately

$27,700,000 for the period of two

of

Texas

area

and

the

Building

in New Mex¬

Clinton

population of the terri¬

the

1955,

and

742,767.

at

months

12

the

ported operating

025,962

Sons, members of the New
York Stock Exchange has opened
a
branch
office in
the
Jenifer

the South

tory served is estimated

Dec.

The company's

the expenditure of

in

energy

For

program

1415

engaged prin¬

generation,

mission, distribution and sale of

its property.

12 months be¬

the

'

000.

etruction

is

company

&

be

to pay in part the costs

company

redemption
if

or

The

cipally

of additions and improvements to

are

103.25%

will

the payment

priced at 100.25%

interest.

preferred stock is priced at
share and is redeemable

per

at

Co.

The bonds
and

ments'and chemicals.

-

,

Advertising Director of General1
Dillon, Read & Co. Inc. headed
Investing Corporation, .80
Wall an
investment
banking
group
Street, New York City, who will which
offered
for
public
sale
ekfrand their newspaper, maga¬
yesterday
(Feb. 29)
$10,000,000
zine, radio, TV and direct mail of
3.35% first mortgage bonds due
advertising.
Mr. Glass formerly- 1981 and
120,000 shares of 4.40%
was
a
merchandising consultant
cumulative preferred
stock, $25
for 10iyears and more recently,
par value, of Southwestern Public
President and General Manager
of The Mark-O

37

cipal amount after Jan. 31,-1980.* fiscal years ending Aug. 31;
1957,;
Allen <&£ Co. Bfanch
The <»inking - fund
t
redemption including the construction of its
(Special to The Financial Chronicle)
price commences at 100.25% and
new Cunningham plant of
75,000
scales
down
to
the
principal
f ORLANDO, Fla./— Allen &
kilowatts capability.
amount.
"
-v
•
\
Company has opened a branch' at

Dillon,

Investing

Glass has

(1085)

775,-

H.

ended

under

P.

the

direction

of

Stephens.

Philip Anewalt Opens

(Special to The Financial Chronicle)

company

re¬

SAN

Calif.—H.

DIEGO,

Philip

revenues

of $36,-

income

of, $6,-

Anewalt has opened offices at 524
B Street to engage in a securities

V

business.

net

^

;

\

;

.

PHILADELPHIA, Pa. — Jenks,
Kirkland, Grubbs & Keir, mem¬
bers of the New York

change,

1421

announce

has
in

,

Stock

Chestnut

.

thatt Thoyias

Mr.

S.: Jenks

Jenks

has

industries for

of

ways to

securities

and

number of years.

a

engineering for

associated

been

banking

ance,

Prior to

joining Jenks, Kirkland,
Grubbs ~& Keir, - Mr. Jenks was
Girard

Trust

Bank.

Before

delphia
with

bank

the

of

principles and

new

ap¬

lit-

fields
new

apply them... for better perform¬

lower cost, and longer life.
a way

thinking—in laboratory research, field

makes

the

name

"Allis- Chalmers"

a

symbol of better living and better things

of

Company

many

-rf.'-

'kv

testing and manufacturing methods. It

Corn
Exchange
joining the Phila¬
he was associated

Guaranty

creative

Engineering in Action starts with

Assistant Vice-President of the-

an

Action—a

proach that reaches out into

Philadelphia office.

the

with

Engineering in action
Engineering in

with'them

become associated
their

Ex¬

Street,

to come.

'

'

New York.

Form Fin. Sees. Corp.

:

(Special to The Financial Chronicle)

;

''LOS ANGELES, Calif.—FinanciaP" Securities
Corporation has

"

with offices at 3460

formed

been

Wilshire Boulevard to engage in a

business.

securities
Herbert

Officers

Resner, President;

are

"

B. L.

Resner, Vice-President; and Sovel
I.

Resner, Treasurer,.

Harold Levine Opens

'

NEWARK,

N.

J. —Harold

D.

Levine is engaging in a securities
business

from

offices

11

at

Com¬

Street.

merce

For

copies of the

Annual Report

write

Allis-Chalmers

Johnson, Lane, Space

Manufacturing. Co.

,

.

Shareholder Relations Dept.
1125 S. 70th St., Milwaukee 1,

Wis.

Offers Radiation Stk.
ALLIS-CHALMERS

Dillon, Read & Co. Inc. headed
by Johnson, Lane, Space & Co.,
Inc., on Feb. 24 offered 150,000
shares

of

at $5

value)
Net

the

Radiation, Inc., class A
stock

common

(25

per

cents

will

unsecured

be

notes,

the sale of
to

used

increase

retire

work¬

Radiation, Inc. engages in re¬
search, development, instrumen¬
tation,
production and services
-

which fall within the broad
of

than 95%
is

electronics.

clas¬

to

fulfilling

requirements

of

Iowa

defense

Shares
Harvey, Illinois

Independence, Missouri
LaCrosse, Wisconsin
LaPorte, Indiana
Norwood, Ohio

precludes any detailed de¬
scription
of
operations.
Three

Pittsburgh, Pennsylvania

West

and

ment

tion.

instrumenta¬

aircraft

;

Allis, Wisconsin

value), 150,000 shares of class
A common (25 cents par value)
and $58,450 in unsecured notes.
of

the

under¬

Scott,
Horner & Mason, Inc.; Grimm &
Co.; Prescott, Shepard & Co., Inc.;
Saunders, Stiver & Co.; Howard,
Weil,
Labouisse, Frederichs &
Co.; French & Crawford, Inc.; and
writing

Roman

group

include

Outstanding

.

-




4.00

?

-

3.25 % preferred stock

39,511
;.....

62,149

146,960

299,204

3,944,362

4.08% preferred stock

3,475,377

-

Common stock

153,751

Preferred stock—4.08% series

787,527

784,000

15,526,911

13,421,584

Common stock

)

320,157

Preferred stock

18,647,100

36,135,300

Common stock

153,028,580

124,833,471

120,455,193

112,118,056

292,130,873

273,086,827

Book Value Per Share of Common Stock.
Essendine, England

Lachine, Quebec, Canada

*

J.

.

~ J

4.41 to 1

6.91 to 1

1,698

preferred stock

4.08% preferred stock.

841

*

Equipment

Industrial

Equipment

*r

'

Number of

40,182
176,715,591

employes

Payrolls

Machinery

Farm Equipment
Buda

35,465

Employes

General Products

Construction

1,303

40,222

Common stock
Power

68.18

Number of Share Owners
3.25 %

DIVISIONS

•

263,751,912

Ratio of Current Assets to Current Liabilities

Ontario, Canada

69.34

258,895,488

1,306

Working Capital

—

and Johnson.

7.20

4.00

Share of Common Stock.

Earnings retained.

par

members

5.3%

6.05

Total Share Owners' Investment

St. Thomas

Giving effect to the sale of the
class A stock, the company's capi¬
talization will consist of 400,000
shares of common stock (25 cents

Other

4.6%

Share of Common Stock

Share Owners' Investment in the Business

Indiana

major fields of endeavor are tele¬

metering (metering or measur¬
ing a quantity from a remote
location), electronic test equip¬

per

Preferred stock—3.25% series

*

Springfield, Illinois

work

26,130,430

Dividends Paid

Oxnard, California

Terre Haute,

this

35,493,374

24,805,326

Dividends Paid per

Gadsden, Alabama

of

much

Earnings

$495,310,486

34,774,217

Percentage to sales and other income

Boston, Massachusetts
Cedar Rapids,

security

the

and

classification

Beardstown, Illinois

More

of the company's work

devoted

$538,045,485
1

All Taxes

Earnings

ing capital, expand facilities and
develop
and
promote
sales of
civilian products. •4
''
''"
'

sification

Sales and Other Income.

PLANTS

par

share.

proceeds from

stock

HIGHLIGHTS

ALLIS-CHALMERS
V/.viv.'AVA-.viW.V.'.

<AC

"

33,865

157,121,943

,

38

The Commercial and Financial Chronicle

(1086)

significance can very easily be overestimated
interpreted —as indeed they constantly are.

Continued jrom first page

See It
We

'As
which

they

based.

are

-

s

labeled

the

glibly. The impression often seems to prevail that
"Gross National Product," measures the contributions of

so

a

.

-

recipient when he has a long list of rigid commitments: such as mortgage interest and amortization, installments on
personal debt/rent and various other items. An ap-:*
preciable part of "disposable income" is in any event, :
"imputed" rather than actual income. The average man,
today needs a glossary of new economic terms always at
his elbow.

GNP

is

deducted

depreciation and certain

There

1955?

market

deducted to get

ed in the mortgage market

"National Income," the figure is still to
be interpreted with caution. Those depreciation charges
are determined on an original cost basis, and hence the
real cost of production is often grossly understated, giving
a much higher figure for either "Net National Product"
or
"National Income" than the facts actually warrant.
Moreover all these measures include corporate income
taxes, so that all of them could theoretically at least show
a substantial increase merely by reason of an increase in
corporate income tax rates.
Scarcely less often or less seriously misused are the
terms "National Saving" and "Productivity." One of the

figures appearing regularly in the so-called National Ac¬
counts, labeled "Gross Saving" actually includes deprecia¬
tion and other capital consumption items! Corporate sav¬
ing, usually assumed to be the equivalent of undistributed
earnings, is frequently seriously overstated by reason of
the fact that depreciation as an item of current expense
and thus a determinant of corporate profits is often very
seriously understated since it is based on original rather
than reproduction cost. "Personal Saving" is all too fre¬
quently employed as if it were the antithesis of personal
spending, or something very near that. But obviously the
mere fact that a person saves, say half his income, does
not mean that he locks the funds up in a strong box or
hoards demand deposits. As a matter of fact, even the offi¬
cial figures in effect include home building as a part of
saving, as they do in point of fact all sorts of capital in¬
vestment on the part of the individual. But how many
popular commentators fully understand these facts?

of

number

a

are

"capital consumption allowances" to get "Net Na¬
tional Product"—or going a step farther indirect business
taxes and a few other relatively minor items are also/
other

The

probably reflects the fact that in

$4.5 billion.
heavy

declining, commercial banks ma¬

did

loan

reflect

considerable indi¬
with
yields
moving steadily upward by virtue
and

pressures

developed

of increased
ment

discounts

guaranteed

higher rates

on

on

govern¬

and

mortgages

conventional mortr

year

Of

This

government 'pension

funds

mortgages; hence
funds

increased

investment

for

in

available

1955

di¬

were

rected into the bond market where

the supply was

(4)
ket

reduced.

/

The .direct placement

which" is

mar¬

predominantly

an

brought

the

market is not
public corporate

yields. This market under¬
considerably greater pres¬
than the public

market and

in

this

than

in

the

public

reflected

the

fact

yields
more

This

increased

sector

sector.

that

life

insurance

companies, which are
participants in di¬
rect
placements,
also
invested
heavily in mortgages; hence the
the

principal

the mortgage market

pressures on

transferred

were

to

direct

the

enabled

hour output is likely to be, assum¬
serious reduction in the effort put forth by the
himself. And this truth is pervasive, extending

ing

no
worker

per

throughout the production process often far removed from
develop¬

the individual worker himself. The invention and

of

the

ordinary telephone must have greatly in¬
creased the "productivity" of labor! And so with a vast

ment

multitude of

other devices

and

instruments—as

well

as

improvements in shop layouts and the like.k..."

mere

But

as

pitfalls in trying to measure
defined, a subject we pass over entirely—"productivity"
and
"productiveness" are obviously not synonymous
terms. It may even be said that they are not necessarily
related at all. Output per hour of labor- does not measure

output per man per week or per year—which in turn
would

measure

the productiveness of the

tion. Production per

capita

working

even a

age

tiveness of
voted

to

might be

a

hear

work

might leave such

hour. These
so

better

working popula¬
head of population of

measure

of the produc¬

people. Steady shortening of the hours de¬

changed in the face of
man

or per

a

these

un¬

substantially larger output

per

measures

as

figures of "productivity" about which

much these




the

supply

the

of

face

of

created

pen¬
de¬

a

unattrac¬

tive yields.

(5)

the

of

Some

pressure

re¬

days, doubtless, have value, but their

banks

in

favorable

in,

the

1955

did

market

pressures.

which

market

long-term

reflect con¬
The public
is

only

tered

to

considerable

a

degree

forces for the reasons

these

outlined

above.

Turning

now

materially
a

credit.

market

Thus

government
which

through

instead
or

the

to

of

corporate

would,, have

.

a

increased

in those markets, perhaps
materially, the mortgage inves¬
tors placed increased reliance on!
the commercial banks.
This

the

placed increased pressure
short.-term market which

correspondingly reduqed the pres¬
sure on the long-term market.
(6)

mand
to

under

for

heavy

banks

liquidate1 over

which

had

credit

$7

billion

of

in; order

to meet
However, instead
liquidating long-term securi¬
ties, they confined their selling
primarily to short-terms and re¬
these

demands.

of

liquidity substantially.

In the first 10 months of 1955,
Treasury ownership data revealed

decline

factors

the

in

of

;

un-:

business:

outiook, most of which have been*
discussed in detail by economists..*
We

have a decline indicated byt
leading series of business in¬
dicators; diffusion indices of business activity are characteristic of
the top of a cycle; the present re¬

has been average in dura¬

of

over

commercial bank

$7

billion

holdings of

in

gov-

indicating

extent,

the

an

ing; automobile inventories have!
been piling up and production has,
been

curtailed;
cash

ment

this

creased
some

sizable govern-;

a

surplus is in prospect!

year;

credit

consumer

sharply last

so

in-:
that

year

slow-down this year is

likely,

payments catch up with ad-,
vances; inventories are increasing
and
if carried far
enough may,
as

initiate

decline.

a

these

While

undoubtedly'

are

weighty considerations, there are
some
strong
supporting factors,
give

no

creased

and

intentions

consumer

as

(re¬

strong.

are

local

and

State

orders.

new

ex-

will* continue to r in¬
crease,
and U. S.
Government
spending will likewise increase

pen ditures

this year.

Residential housing starts which

%;

have

in

been

for

downtrend

a

some

months give an

awards for January

year

changed

ago.

Then

we

from
had

super-housing boom under way

well under way,
the
prospect for a substantial increase

recovery

short-term

in

credit

and

cations for the first part of Febru¬

indicate

ary

a

outlook

tot lower

personal

Today the boom has been top¬

intentions

is

which

being tabulated, and which
has been relatively accurate in the
now

in

indicates

past,

basis as

many

preliminary

a

planned starts this

last. Finally credit condi¬
tions in the mortgage market have
eased somewhat and the planned
as

of

level

starts

readily be fi¬

can

nanced. Consequently
that the

be

is

housing

it may well

decline in residential

behind

now

us,

at

or

least that the worst is over.

pos¬

savings because of large scale re¬
sort to increased consumer credit.

like trend. A survey

a

builders'

of

With

,

sible

ac¬

are

record, and preliminary indi¬

on

year

bile

reference

situation,

the

to

if

automo¬
sea¬

pre-war

a

sonal increase in automobile sales
takes

place, the worst of the re¬
duction in automobile output has

ping out with industrial produc¬
tion having remained fairly con¬
stant since November, automobile

place,

production is down sharply; hous¬

portions -would be necessary.

pressure

short-term

governments

a

to
sit¬

from* ing has been declining for months;
tremendous increase in the de¬ the outlook is for no sharp in¬

were
a

Commercial

a

bank
selling' with talk of a million and a half
bonds starts, a sharp general business

yields

on

one

segment of this market was shel¬

that of

short-term

number

a

(

tually above January a year ago
which was the highest January

Governments

uation

market

to

favorable

more -

a

the

long-term

the

namely,

—

the outlook for 1956 we find

duced their

we

funds

of

sulting from the heavy supply of
mortgages was transferred from
;

are

t

tract

from

"warehousing" of mortgages with

these—and the
"productivity" as currently

apart from considerations such

There

ported

structure

rate

commercial

Sheltered

bond

higher the

■■

....

Business Outlook

v

.

,

where

creased

uncer-;.

indication of
market
than
would V otherwise possibly levelling out at around
have been the case. Finally as a 1,200,000 units. January start fig¬
result of the reduced
attraction ures, seasonally adjusted, showed
no
decline; likewise applications
of the stock market by virtue of
for, FHA insurance and VA ap¬
its high level, certain institutions
de¬
became relatively more interested praisal reports have ceased
in the public bond market than clining, at least temporarily. F. W.
Dodge figures of residential con¬
previously.
liquidate

siderable

in

trans¬

who
bought
governments
very

the

eral, invest in the public market
activities

being

investor

short-terml

Thus

the

>and

evidence as yet of a de¬
willingness to spend—re¬
tail sales have been behaving well

heavily, switching from cash. This

capital

funds

risk

tainties.

were

short-term

supply

market

the

direct placements did not, in gen¬

sion

business forecast with all.

a

attendent

underpinning business. Consumers,

than

new

a

vestment outlets in mortgages and

the

volves

its

in

the

short-term

the

And, Productivity! What crimes have been committed

man

nately the interest rate ouclook is-

•

corporate

sure

for

Likewise the
(7) As a result of this concen¬ evidence relating to capital goods
tration of pressures in the short- actively is favorable—new orders
term
market, interest rates in for durable goods have been in a
this market did behave in rather strong upward trend, and plant
striking fashion.
The bill rate and equipment spending surveys
for example increased from the indicate a strong year. It is rare,
1954
low
of about
0.75%
to a that any substantial business de¬
peak of 2.69%, the highest in over cline sets in without a prior fairly
20 years.
This sharp increase in substantial drop in capital goods

into

bond

outlook

pressures

in

rather

market

reflected

went

is

how¬

ferred to the long-term market.

insurance company

in

still

a year ago.

meant,

again

these

that

resulted

have

would

1955

losses.

(2) On the other hand, the net
in
the supply of longterm
corporate bonds and mu-,
mcipais decreased
by about $1
billion, or 10%.
/
;v
(3) Corporate and state and

their

but

bill

2.69%

almost completely dependent upon;
the business outlook and thus in-*

government

concentrated

do not invest in

were

maturity
portfolio.
Liquidation of these purchases at
the materially lower price levels
their

ever,

increase

rates

the

lengthened

terially

of

thy name! As ordinarily employed the term merely
means output per man hour of work. Obviously, the term
or the figures purporting to measure productivity, carry
no
implication of causation. Plainly the more machinery
and the better machinery put at the disposal of the work¬

in

interest

when

1954

gages.

local

maturing with¬

where

market

gestion

2.49%

the

imminent decline.
Housing starts have been declin-:

primarily concentrat¬

was

the

in

pressure

one

placement market. Insurance com¬
panies with more attractive in¬

"Productivity"

.

Tne

ago.

from

the balance of the year?,Unfortu-f

possibility of

and an actual increase
in holdings of more
than oneyear maturity. This action in turn

net demands increased

This

ernment securities

in

reasons:

(1)

about

to

tion^ and

—Long-Term and Short-Term |

cluded in GNP."
from

4

The Outlook for Interest Rates

"do-it-yourself" addicts who add billions of dollars
each year to the output of goods and services are not in¬

year

1% higher than
What then is the

covery

and

a

declined

the

Continued from page

realized that the labors of the vast army of housewives

If

certainly not all at the disposal

are

than

has

back

receiver. Certainly not at the disposal of

of the income

Possibly the. most commonly employed of the lot is
GNP, and it often appears that the user is not quite
familiar with the content of the magnitudes he is using

given period to the satisfactions and the capital accumu¬
lations of the period. Of course, nothing of the sort is true.
Naturally, current output is not accomplished without
cost in resources, equipment and other items of capital.
No account is taken of these items of cost in the figure
known as Gross National Product. Neither is it always

"disposable"

lower

over

"Disposable Income" is another figure which must be<>
-interpreted with circumspection. Statistically it is merely i
personal income less taxes, but all the sums officially

"GNP"

Thursday, March 1, 1956.

.

governments is actually somewhat
rate

"Disposable Income"

conclusions, quite alien to the statistics on

broad

draw

mis¬

or

.

.

crease

in

the

demand

term credit this year,
the

for

short-

and there is

prospect of somewhat higher
savings due to a small

personal
increase
The

in

consumer

credit.

public bond market has al¬

ready reflected
uation.. Yields

cut

;

-

on

high grade cor-

does

take

not

then, obviously a further
in production of sizable pro¬

remains

-

demands

strong
are

so

-

,

situation* abroad
and in England

business

The

strong that infla¬

tion is the
l.

primary problem.
Finally,
in
an
election

year

,

effort

every

bent

to

will

prevent

business

of

a

naturally be
recession in
a tax
* and
a
contracts

any

duration;

easier

money,

faster letting of defense

all would serve to counteract any
decline.

prevailing at this time

Thus

The yield on long-term

lowing

to the level

it

If

seen.

this changed sit¬ reduction,

porates in the short space of two
months have moved half way back
last year.

been

;

I

have

come

somewhat

to

the

tentative

-

fol¬
con-

*

Volume

Number 5512

183

.

The Commercial and Financial Chronicle

.

.

elusion

concerning

- business
The year as

the

outlook for this year.

whole

a

should

'one, with
of

last

than

such

vance

stable

relatively

well see

may

is

It

the

on

-pattern
•drawn

Outlook

r:

.

1954.

assumption of this r

the
year

I

shown
to

interest

outlook

outlook.
here

be

seen

of

rates.

term sector of the

continue

to

be

the

in

Demands

long-

an

the

should

market

although

heavy

second

downward
-

first

half

persist
or

year

-1955.

assumed

be-not

to

much

too

below last

year's record shattering
$17 billion, with residential down
somewhat and other categories up.

fluctuation

to

,

coupled
could

money

with//natural

and

these

"

continue

to

exceeded

be

market will be

the

long-term

of

in

his

m

look

up

,

ratio.V

into

the

by

the

future

When

and

we

the

see

potentialities opened
scientific
"break-

rather

than

This

direction.

in

a

President

eased

"

of

Tekoil

will

the

Dallas

White,

law

A t

Tekoil is

petroleum reservoir
firm specializing in
recovery methods,
chiefly by waterflooding. Execu¬
offices

tive

are

of

is quite likely that in the future

studies

been

made

savings .♦ which
in

recent

as

years,

A

our

.Burbank

20

at the

member

former

New

Mr.

Bur¬

'

his

study: of

long

the

subject,, investment opportunities.

bank

/

„

with White, Weld & Co.

was

HIGHLIGHTS.

year

.-siiimi
W'M-

/smaller refinancing requirements1
will be

■

less important factor

a

is

presented for a successful ofvfering of long-term bonds.
V;
Thus while the money markets

-

ft

generally should be easier in 1958
1955, the principal beneof
this
greater
ease

•

ficiaries

:

*

;

assumed, the primary result of the changed situation will be greater relative availwell

as

as

of

ability
than

*

<

Capital

easier

of the

common

$13.44

in

change

reached

$44,349,599 in

rather

terms,

substantial

any

Investment of Continental

holders

and

credit

mortgage

•

per

a

new

mark

of

multiple fuels in

one

engine, and

t

the bright spots in 1956. As

among

supplier of

power

and
are

major

a

for the specialized equip¬

ment used in these

fields, Continental looks

forward to substantial business here.

of

•

while book value
rose from $13.38 to

Military business reflects the current con¬
policy. However, an order for

servative

approximately $17 million worth of military
vehicle engines has recently been received.

share.

interest rates.

*

Unlike

should not

market

term

in the

easing

prospective

material

the

1954

in

short-

be

com¬

to

municated in any large degree

the long-term market for
reason

same

the

that

*

the

*10060

•

Continental finished the year

•

with current

The order

and

$58,115,700, and current liabilities
of $27,553,219. Inventories were reduced
$133,803- during the year. The ratio of

assets of

backlog of Continental Motors

consolidated

of fiscal

subsidiaries

1955 totalled

at

the

end

approximately $88

million.

very

tightening

/in that sector in 1955 did not

STATISTICS.

ap¬

preciably
affect
the long-term
public market. It does not seem
Lprobable that the commercial
banks will be net purchasers of
r
securities but even if they are,
their purchases would in all probability
be
concentrated
in the

Fiscal Years
Ended

1955

1954

1953

1952

1951

Oct. 31

13,876,317

14,659,577

23,073,000

21,390,000

16,950,000

$145,465,155

$182,061,693

$298,438,605

$264,219,009

$166,677,855

$2,502,287

$4,542,748

$6,023,812

$6,126,021

$4,469,063

$0.76

$1.38

$1.83

$1,85

$1.35

$0.70

$0.80

$0.80

$0.60

$0.45

Current assets

$58,115,700

$67,362,396

$104,895,088

$106,074,697

$77,194,737

Current liabilities

$27,553,219

$35,667,076

$72,618,572

$76,692,367

$51,185,864

Net

$30,562,481

$31,695,320

$32,276,516

$29,382,330

$26,008,873

Engine output (horsepower)
Net sales

*

short-term market to restore their

*

;
<

;

liquidity,

Thus

"*

j

the

as

is

be

any

in

Present

close

lcng-term
there

concerned

changes

y^ar.

quite

:

nGt

further
this

far

as

market

bond

should
:

that

likely

will decline.

/
,

is

it

and

corporate holdings of short-terms

material

very

interest rates

yields' come

discounting

to

sup-

Net

earnings

Net

earnings per common share

Dividends per

share

working capital

Ratio of current assets
to current

2.1 to 1

Long-term debt

1.9 to 1

$3,040,000

liabilities

$3,320,000

1.4 to 1

1.5 to 1

$3,880,000

1.4 to 1

$3,6

$4,160,000

ply-demand conditions in the latter part
of the year, provided

Property, plants and equipment (net)

$17,219,239

$16,654,419

$14,085,545

$13,573,156

$12,533,919

Stockholders' equity

$44,349,599

$44,157,312

$42,254,564

$38,870,752

$34,724,731

that

Book value per common

$13.44

$13.38

$12.80

$11.78

$10.52

business

is

definitely

on

the

the

in¬

share

"

upgrade at that time.
terim,
the

the present

bond

suit in

market

some

is

In

psychology
likely to

further reduction

of
re-

in

;yields but the change should not

./ be large.
r

t

.

It/is

possible, of course, that if

production

declines, even though
slightly, in the first half year, ex-

'

cessive

?teps

will

be




taken

to

rantinenta! Motors rorporation
MUSKEGON,

'

this

to

*>~The highway construction program,
rthe continuing activity in building,

1955,
stock

production/ in

and

have important effects 6n
company sales. More detailed announce¬
ment is planned for the early future.

Motors stock¬

high

-

country, of a radically new'principle of
Diesel combustion, -makingpossible the

promising

*

working capital at the close of 1955
$30,562,481.
•.
%//.,.

7

1.

Continental made arrangements in 1955

use

share, to $2,502,287, or *76

market, if the supply holds

^somewhat
'

per

share.

a

expenditures in 1955 'totalled
$2,978,50Q. This was spent for plant expan¬
sion, tooling and equipment.
•

mortgage market and the
short-term market. In the mortgage

/

U

Net

was

ly the

rup

$1.38

cents

1950,

1, highest sirrce

to

2.3 to

exploitation

-

/us®!!

was

.V
•

earnings declined from $4,542,748,

Net

or

to-2.1

when it

-

poration—had net sales of $145,465,155 in

•

/should *be the two markets under
/greatest pressure last year, name1

Company and Wisconsin Motor Cor-,

1

K9 to

■v

lift';

/than in
*

current assets to current liabilities rose from

Corporation and
— Gray
Marine

$$

-be

'

Motor

Motors

subsidiaries

ended October 31, 1955, as
compared with $182,061,693 in 1954.

it

probable that opportunities will

consolidated

the fiscal year

in

this year, although

the market

Continental

•

cash surplus and

relatively large

58.

the

_

:

of

of

wm&mm

...

passed

age

Exchange,

Stock

York

growth, not

L.

Feb.

away

in the past savings will be the

limiting factor in

Kuznets, for example, based upon

Bertrand

demand as business

and that banks will b~e
of government securi¬
ties.on balance. /-/ /,./
The U. S. Government with a

with

Dallas

Bertrand L. Burbank

rapidly continu-

our

as >

sellers

in

regional offices in Midland, Texas,
Oklahoma City and Robinson, 111.

ing suburbanization movement, it

£for bank loans will decline and
^pressure in the short-term market*
Iwill be materially reduced. It still
seems likely, however, that bank
.loans will show a modest increase
this

of Turner,
McLane and

a

in*1955. Consequently the demand

net

d,

engineering

to expand rapidly as it did

^ceases

resident

firm

w o o

drop much more than,

the long-term

and

Francis.

/compared to last year.
'
/.( //
J The short-term demand for
funds

board

Davison,

of

demands that have re

.

su^ed from

latter

conclusion is based upon the his-

have

company's

The trio includes W. H.

structure, in secondary

In other words, I electronics, and

direction

toricai

been

Robinson, 111., and Dallas, Tex.;
Dean
P.. Guerin,
President
of
Southwest Investors, Inc., Dallas;
has and Alfred E. McLane, partner in

downdrift

secular

savings

tremendous

the next 15 years

over

slight

a

the

has

of directors.

monumental

form of saving there

a

been

in

the

of

absence

a

downtrend.

•

While there is not * Goldsmith

committee

by Tekoil Corporation to
expedite growth decisions in the

the

by

demand for funds although the
margin of excess demand will be
materially reduced. The pressures

;on

it is

ratio,

direction

executive
named

or

up

ward

-

;

minor

year-to-

the

in the new opis mo
long-term portunities presaged by the huge
down. However, if growth ip spending on research,
such a trend does develop it will and add these to the tremendous
probably be in a gradually up- investment demand that b9VP t-p

.trend

interest

(Corporate and state and local net t rates. If on the other hand, the
demand
will
probably
not
be. dynamic upward forces of 1955
much changed from 1955.
continue
this
year
; and
press
The supply of long-term funds
the ceiling of capacity,
will continue to increase but will against

savings

in

that .there

pressures 'downward

materially* reduce

the

go

the channel.

in

feel

moje sharply in the

ease

in

^u(;tuate UP and down witn- throughs" in atomic

half

taken
.

.not invest¬
If any trend

economy,

probably

probability the
in,long-term
interest rates have already been
set in the last 10 years and that the

<

:is

our

opportunities.

exists

as

document all
them. In brief I <as-

believe that

yearA jhen unquestion¬
somewhat less than in
Total net mortgage demand a ably! substantial- steps would be

.probably

to

in

ment

limits of fluctuation

in

turn

tor

rates

or

DALLAS, Texas—A three-man

ings have been the limiting fac-.

into tnis subject/study
of
the
subject
likewise
any detail, J,will voutline my comes to the conclusion that exopinicns i without attempting to eluding consumer durable goods

to stress-that
forecast is de¬

business

in

cyclical

Tekoil Exec. Committee

past history of our country, sav¬

in

business forecast assumed. Should
decline

the

against
time

psychology

rate

interest

for

year

to

reached the conclusion that in the

interest

been

in

much

too

that

materially.

asked to say
about the strictly long-term

word

'

pres¬

pendent almost wholly upon the
business that I have *_
correctness
of
the
underlying
the following conclusions '
a

have

I

will affect matters. :*:£uUy

wish

doubt

rise

Long-Term Outlook

,

;

of

concerning the outlook for inter¬
est

It" remains

./.Finally,
any

eased

was

whether

-

has

little

and in retro¬
feel that the

people

some

situation

election

Rate

Interest

-

resistance

would

might

for undue ease,

spect

and
busi¬

period in July

half

however,

past,

sures

activity rising.

?

-

remain

the

commendable

1955. Industrial pro¬

as

low

last

ness

,

-

dynamic

decline gradually to the

or

seasonal
the

adjustment,
ad¬

of

is

rates

decline
more
sharply than an¬
ticipated. The Federal Reserve in

level ahead
of

and
one

will

duction

that in consequence, yields

It should be one

Consolidation

there

Reserve

excellent

an

average

an

year.

rather

be

the situation by the Federal
and
the
Treasury
and

<* ease

39

(1087)

> -.-3*

MICHIGAN

40

The Commercial and Financial Chronicle

(1088)

more

little

was

recall

Economics in Election Yeai
higher than they were in mid1954, the take-off point, but
Federal
spending
is lower by
about the same amount. It is the

own

the

of

sector

private

economy

ahead under its

nor

spend

it

houses,

no

you

as

no

cars,

goods.
life

soft

few

goods,

on

no

One would expect the sale of
insurance to be very
not.

was

Shortly after the end of the
life insurance sales skyroc¬

war

businessmen have yet signaled

high. It

keted

though

even

things,

other

a reversal. In my view there
much wanted, were coming onto
nothing yet in the business pic¬ the market. Why? You will recall
ture which would prevent a mod¬ the universal
belief during the
erate, yet steady, advance through¬ War that as soon as it should end

ply

matter of farm

a

prices and

guard the real

surpluses, important as these are,
but is also part of an even broad-

of

not adverse to

problem.)

er

One

the side. In

obvious

solution

would

inflation

be

to remove all government support

from

farm

prices and let the

supply

ducts.

I

of

agricultural

doubt

that

event,

been

many

built

on

think

irrevoc-

but I do think our system has
definite bias toward inflation.

pro-

here

anyone

little inflation

a

any

has

ably into our economic system. I
do not go along with that view

na-

tural forces of the market reduce

the

purchasing power
incomes, but many are

those

Apart from

such

would endorse this solution. Even
if

particular

any

a

•

cur-

rent trend

is

are

out the year.

we

But what about the

financing itself and

power,

to

—

durdble

High Taxes

And Self-Defeating

which has moved

war people were earning
than ever before and there

ing the

Continued from first page

Thursday, March 1, 1956

...

possible ef¬

expanding rapidly in response to
the confidence of consumers and

fects of election year political ma¬

businessmen.

economy,

would go into a

deep recession

with untold millions out of work.
As

a

those who had

consequence,

it

in our economy, there
two great underlying pressures
contained in it; one on our natural

desirable, which it is
not, it would be politically impossible.
were

In

resources

attempt to meet the prob-

an

lem,

the

years

capital

has adopted various subsidy

government

th,e

over

oratory upon our the
money
and
should
have arrangements, mostly of a forced
and for that matter, our bought life insurance did not do draft makeshift type and designed
security.
We
perhaps so because they thought they merely to push the problem off

national

I

on

of

am,

our

course,

speaking long range,
The constant
stepping-up
of
our production machine, acceler-

and

neuvers

another

and

funds.

ated this

year,

demands

in-

new

vestment in plant and equipment
and a half ago there
have more reason to be uneasy would be out of work at the end for a few years. Even the most far greater than ever before in
were many who believed that a
about these than in the. usual elec¬ of the war and unable to continue ardent advocates of these
govern- history. It is probable-that by 1965
revival ,f rom the minor adjust¬
tion year. There are several threat¬ the
premiums. Instead of recession ment programs recognize that they.;we will need to 'spend-,,at the rate
ment then underway could not be
are not complete solutions to the
ening situations abroad, and an we entered on a boom. As soon
of;$60 billion per year for inachieved without massive action
economy
of our present magni¬ as people realized that work would question. Nevertheless many ideas creased and improved facilities if
on the part of government. They
tude is sensitive, based as it is, continue
available, life insurance proposed and measures adopted we are to escape severe manpower
called
for increased Federal
and always will be in peace time, sales went to unheard of
have real merit. All, however, in shortages
highs.
which' would:' greatly
.spending, more subsidies, an un¬
so
largely upon consumer and
the final analysis seem to depend push up the *. price; for manuf acbalanced budget, and an
To me this points clearly to
easier
business confidence.
for full success on a great increase tured goods. It has been estimated
confidence in continued work and
monetary and credit policy. Long
in demand for farm products in .that if we had to produce
However, election years in the
today's
alter the recovery was progress¬
income as a principal factor in
the future.
past have not turned out appreci¬ consumer
goods with thevfac i 1 it i e s and
ing in late 1954, the demands for
willingness to buy. How
ably different from non-election
The hoped for increase in future equipment available at the end of
about his willingness to use con¬
expansionary intervention were
years. The records indicate that
demand is not entirely illusory, the war, we already." would have
continued and the monetary auth¬
sumer credit,
take on time pay¬
A

year

*

orities

the

for

criticized

were

modification of the "actively easy"

Government

resisted.

policy has been one of providing
a favorable atmosphere for
busi¬
ness
advance without attempting
to force that advance. Under these
conditions, the economy has dem¬
once
again its amazing
resilience and basic strength. The

onstrated

of the past year
the most opti¬
mistic predictions. I think that the

'business upsurge

has surpassed even

course

of events has demonstrated

quite clearly that those who de¬
all-out

immediate

manded

ernment action in

1954

gov¬

false

were

prophets. Had what they so vocif¬
erously urged been followed, there
is no question that we would have
experienced violent inflation dur¬
ing 1955 and there is a strong pos¬
sibility that the runaway situation
which would have developed
would by now have plunged us
into

a

sharp business downturn.

The

situations

ments?

the

Obviously there

be

must

confidence in continued

same

critical, and election year
work. But suppose he already is
activity, like that in nonmaking time payments? Today, in
election years, generally follows
my view, consumer credit is on
the
pattern
established
in the
the high side. Others, with much
years immediately preceding.
logic say that it is not unduly high
1

not believe that

do

statistics

of the past give us much clue as
to what lies before us this year.

relation

in

to

spendable

income

fidence

expecting

year

mism

that

high and there

was

feeling

opti¬
was

a

the part of the public

on

we

much:

too

are

and

cautious

more

new

have

so

large

a

his head.

confidence, although the immedi¬

years

to pay in some other fields

ate future

seem

to

There

why

sound

seems

are

enough.

number of reasons

a

of us think that election
activities this year, at least,
dangers. We have already

some

those

leave little

terms

are

time of great
do in

we

give. If

more

in

necessary

a

prosperity, what do
of

case

a

downturn?

odd

confidence with

appeals to the Admini¬
stration, is unquestionably timed

short-sighted and
inflationary measures to be sure
to have a high level of business

else that the farmer and

to create domestic

until

buy.

price rises

the rest

serious
averted. Thus we

But

at

were

least

All this has

particular bearing,
seen
evidence that vital interna¬ because consumer confidence, by
tional relationships may be upset indirection perhaps, becomes an
election
as a result of campaign .activities.
year
target. Confident

new

peace

offensive, with

un¬

ilateral

well

political doubts,

world wide propaganda
material. So far it has failed. The

as

as

find ourselves in early

are

a

less

likely to demand

change. Two things follow: the

administration

tempted

in

power

maintain

to

be

may

consumer

after election. It is equally
important politically for the other
side to
point out dangers and
problems and to make prosperity

1956 with problems of foreign aid and
high level of business activity, foreign trade are shaping up as and the future look as fragile as
the economy pressing capa¬ a
partisan political battle.
possible. The economy can easily
city in many lines and with real
More specifically, however, the lose, either way. We are particu¬
incomes at an all-time peak.
partisan activities of an election larly vulnerable to a change in

a

with

make

year

The Business Outlook in Early '56

Apart from possible difficulties
in connection with election efforts,
the year ahead of us gives every
indication of continuing prosper¬

ity. Now that

we

have reached

a

high utilization of the exist¬
ing labor force and physical plant,
we cannot expect to move ahead
as
rapidly as was possible with
very

some
slack in the economy. The
maximum advance in real output

the coming year will prob¬
ably be around 3%. Allowing for

over

us

than usually

more

liable to take action and positions
which can do considerable short

long range damage

or
a

number of

ing

us.

or

situations

A few of

industries, the
actual advance is more likely to
some

be around 2%.

There
cline

are

those

who

see

a

de¬

business

in

activity in the
last half of 1956, but not as many
as

there

decline

Certainly such a
possible, but I do not

were.

is

believe that
able to

us

sion. One
versal

in

the

sales.

now

support such

never

But

a

avail¬

conclu¬

knows when

business

psychology will
in

facts

or

cause

neither




a re¬

consumer

a

let-down

consumers

both, in

confront¬

these

I

wpuld

spend

willingness

and

money

the

United

States

proportion of
are

to

available

use

credit.

can

no

duction

shortages unless
be

can

stepped

pro-

sub-

up

provide
large
sums.
Insurance
companies, pension funds and all
; the savings institutions will add

vas^ amounts. Capital funds, however» can come

,b(L. e^ugb*

'

much because their gross

so

has

declined

in

Russia

a

a

stable and prosperous

omy—and at the

same

that

danger not pres¬
or

China

where

they are always at the bottom of
depression consumer-wise and

a

purchase of necessities cannot

be put off.

We

have

|

struggled

with

cut

consumers

down

...

on

single issue in the 1956 campaign.
a
strong possibility that
political positions taken and Con¬

buying. Consumer spending at the
running very high. Just

There is

what

gressional and administrative

moment is

factors

cause

consumers

generally to buy or to curtail buy¬
ing I do not know. However, there
are

some

causes.
own

logical

Take

field

of

one

life

clues

to

example in

increasing

work

of

the

of

part

and

share

many

rubber, iron and similar prod-

increas-

eum,

ucts of the earth.

to

the

Although we

have only 10% of the free world's
population,

we use

almost

as

much

get

Pean cities. I do not fear the exhaustion of these materials — but
from the rest of the the pressure, on them will greatly

consumer.

All

this

to isolate the industrial

ity in

to

a sense

serves

commun-

and to minimize to the
vanishing point the portion of
productivity savings which go to
economy

consumers

price reductions,

as

There is thus
the

in

ance

from

this

failure

along to

pass

v

growing imbaleconomy
resulting
a

of

industry

to

consumers some por-.

tion of

rising productivity in the
of lower prices. Not only

form

farmers

have

less

been

hurt

by

this

consumers on more

fixed

incomes,

and

all

position to demand

a

higher incomes, (and that includes
most

people),

division of

are

our

passed by in the

economic product.

Substantial progress in solving the
farm problem, as well as the general problem

cannot

ance,

consumers

to

of economic

imbal-

achieved

unless

be

generally

permitted
share, along with labor and the

owners,

in

our

are

advancing produc-

tivity.

raise the development, extraction
and processing costs, and the cost
°f developing syntheses and substitutes. Huge investments will be

r®qu*re<* ihthisfield.
These two basic

damage to the farmer and
the country. And yet the
problem

my

is

range

All

of

a

Stable

Avoiding Inflation
us

wish

to

maintain

i

;

on

selves justify ray view that our
system has a bias toward inflation,
the » other- hand < we have
learned much about controlling
inflation and recessions, although
much more - remains unknown,
The administration of monetary
and fiscal policy over the past
three years gives hope that we
are accomplishing a major breakthrough on this front. We weathered the adjustment of 1954 with
a minimum of loss and the boom
1955 has been held within manageable proportions. Reliance must
be placed on general credit controls because selective credit controls bring us into the authoritar¬
*
field

where

for another until

Economy

r

pressures,

resources and on capital, in them-

ian

ac¬

urgent and must be
(It is not, however, sim¬

among

one

returns,

an

industrial

management

the

handled.

a

de-

as

lead,-zinc and copper as the rest
them. Where increased productivthe non-Communist world com¬
ity has not absorbed the increased bined. Our per- capita use of water
costs, they have been passed along is 22 times that required in Euro-

overthrown

and

insurance. Dur¬

not

Stockholders have received larger
returns and in some instances have

Maintaining

and

is

Labor has

received

of

tions forced by them may do long

real

examples, is increasing by almost
incredible leaps-and bounds. The
cost of many critical materials has
multiplied because our production
machine requires 24% to 85% of
the free world's supply of petrol-

large section

which

industry.

manded

ing

very

economy

merely

ucts,

com-

to

including that

pressure

those

and

directly for the

passing along little or noththe consumers generally,,

pany,

ing

stockholders

those not in

the

ing the very real danger of infla¬ farm problem for decades and to¬
tion.
day it is with us in aggravated
form. It appears that today's farm
Consumer Willingness to Spend
problem, the problem of farm
Money and Use Available Credit
surpluses, will be the subject of
No matter how broadly
based, more political generalities and
prosperity disappears quickly heated
debate
than
any
other
when

of

imbalance. All

,•••-•

Declining Farm Income

econ¬

*

who

or

time avoid¬

,

of the

between

savin&s fall short, then mflation^ir^tV1C0e,L ^? supply the re^
** prices will rise accordingly. On the other hand,
failure to provide the plant will
pusb
prices. Failure to save
to provide the funds, with0
mHationary devices, will push
up Pri<Jes- I believe that our excesslvely bigh income tax rates
coming horne to plague us m
the form of inadequate savings. :

Another long range inflationary
is developing as a re¬
suit of the mounting demands on
our diminishing natural resources,
productivity The rate of demand on forest prod-

badly. The rise in the price
things farmers buy has, in
turn, been the result of a growing
tendency in industry to divide the
come

fruits

only from savings

and it is not at all clear that the

supplies has squeezed farm net in-

readily

hardship to the

(3) Major problem of maintain¬

ing

purchases
sense

postponed

or

in

substantial

consumer

be

with little

the

(2) Declining net farm income.

a

because

for luxuries in the

they

ent

(1) Consumer

psychology

consumer

buyer. This is

like to discuss briefly:

...

adjustment in

to whether we can safely raise
the- capital which will be called
for. Plowed- back earnings will
as

—

a

us

in

There is very little more, in my
as
because
on our part, to have a
their costs have risen. Even with
long and mounting period of pros¬ estimation, to stimulate sales by
perity. Some of this optimism — easy credit terms over what has declining unit prices, the increased
volume of marketings has mainespecially the long range guesses already been done. Thirty year
gross
income
per
farm
and predictions as to a miracle mortgages with minute down pay¬ tained
ments in the home mortgage field fairly well. But the rise in the
future, which you all have seen,
and no down payments with three price
of labor,
equipment and
is unrealistic and invites overout effort

as a major domestic political
issue, with partisans rounding up
strong political pressures. Russia's

of

farm

come

income

ing

in

the

we

farm production; and by 1975 our
farm surpluses are likely to be-

ty not

.

destined, almost with¬

avoiding inflation.
Consumer's Price
Index rose only slightly, never¬
theless the steadiness was largely
a
case
of lower food prices off¬
setting rises in nearly everything

successful

Although

manpower- shortage/, of some 10
million men. Prices would be out
of reach. There is a real question
a

about

voters

entirely

if

—

increases

a broader aspect to the farm
probthan if he didn't lem which has not had sufficient
debt hanging over attention. Farmers are in difficul-

purchases

The Middle East situation is loom¬

not

solution

further

and the economy

cf the boom. We

were

partial

a

restrain

generally. I be¬ stantially.
I am not proposing a solution
lieve, nevertheless, and think it
Nevertheless, if an election year
quite elemental that a man with to the lowered income of the farnormally holds dangers, they will
substantial time payments is going mer, because I do not know one.
be at least as great this year. One
to be more subject to loss of con¬
I believe, however, that there is
reason is that we came into this

year

of

population in

our

the next five years will pro-

vide

hold

policy

growth in

even

can

general
credit restraint followed by the
monetary authorities during 1955
contributed greatly to the stability
sound

The

business

Fortunately, these pressures for
the injection of economic stimu¬
were

critical

overseas

more

policy of the preceding months.

lants

domestic oratory doesn't generally

make

-

one
we

control
are

calls

helpless¬

ly entangled.
a

high level of employment and incomes. All say they wish to safe-

The political
dangers in the
field of monetary and fiscal controls are great to say : the least.

Volume 183

Number 5512

They multiply in
The

best

mind, to prevent
dampen off

top

out.

exerted
off

of

to

political

is

apt

Railroad Securities

Too

where

damping

to find

was

Gulf, Mobile & Ohio

the

party in
power pressing to keep the boom
burgeoning until election is past.
At any
the

At

of particular interests

on

the

at

national

distinct

as

partisan interests.

In

spite

desires.

and
at

Some

1955___.
1954

must at¬

we

eclipse.

,

places
;

correct, to ease, or to facilitate
Wat change; our
courage because

inevitably will be besieged by
for
to

tion

alLout

government

out

pour

more

inject stimulants here
to

frantically push

•

and

there,

economy
■-

of price stability;
Perhaps our greatest economic
task m 1956 is therefore to strive

expense

lor

objectivity in viewing our na¬
tional affairs, to resist the
pressure

groups, to seek out
real solutions rather than
tempor¬

above

of

the

selfish

whole

current price of 96 %
reasonable valuation on its

for the road's $5 preferred
highly satisfactory statistical

stock

common

has

been

allowed

to

V

•

to

$5.75

Paul A. Harris
FT.

for

the

in

1955

WORTH, Tex.

June

modore

be held

Perry Hotel
evening.

ceding

the

at
on

With Makris Inv.
Form Erich Loser Co.
Erich

formed
102nd
engage

has

Co.

Loser

with

offices

at

in

a

'

(Special to The Financial Chronicle)

i

MIAMI, Fla.—Franklin H. John¬

been

affiliated

with

Makris Investment Bankers,

West

235

Ains-

has

son

City to

Street, New York

acquired with the Alton extends to Kansas City while a
branch goes to New Orleans.
Access to St. Louis is

become

v

ley Building.

securities business.

Swiss bank

the Terminal RR. Association of

over

roughly describes the system

as

it has

been since 1947

bankrupt subsidiary of the Baltimore & Ohio.

a

CORPORATION

These

the northern terminus of the road had been East St. Louis
by vir¬
tue of the combination in 1940 of the
Gulf, Mobile & Northern

Bienne

which had been in
pre¬
more

receivership since 1932.

less "under the

or

;; original

size

on

terms.

The

LaChaux-de-Fonds
•

St. Gall

•

•

Geneva • Lausanne

Schaffhouse

•

Zurich -r

By these acquisitions,

hammer," the road

favorable

•

Neuchatel

with the Mobile & Ohio to form the road of the
present name. The
Mobile & Ohio had been a former
subsidiary of the Southern Ry.

;

SWITZERLAND

Head Office: BASLE,

properties gave the road its line northward from East St. Louis to
Chicago and from Alton, 111. west to Kansas City. Prior to that,

at

Com¬

the

4728

at

Montgomery, Ala. and trackage rights give the road access
to
Birmingham and westward to Memphis. Another

RR., then

National Open Golf Tourna¬
ment. A cocktail
party and buffet

dinner will

HILL, N. C. — Cass
offices Yri the
Brockwell Building to conduct a
securities business.
V
Johnson has opened

securities

and

when the Gulf, Mobile & Ohio acquired the
properties of-the Alton

C1,ub, the site of the

1957

,

Houghton.

St. Louis.

29th

CAPITAL

able to triple its

was

nucleus

the

was

original

RESERVES

/

84,000,000 S. Fes.

160,000,000 S.Fcb.

Gulf, Mobile & Northern, an 826-mile road organized in 1916 with
operations confined to lines in Alabama, Tennessee, Louisiana and

S. F. Exchange Member
SAN FRANCISCO, Calif.-The
Governing Board announces the

Mississippi.

election

tion

of

Barry M. Newman to

membership in the San Francisco

Exchan£e effective Feb. 24,

1956

Mr. Newman is

of the member firm

ner

&

of

Youngberg. He will be

cialist Odd Lot Dealer

change.

latter

Spe¬

the Ex¬

on

,

..?*•

ivi

r*t_

.

j

t1

been

the

Northern.

northern

The

terminus

eastward

leg

of

the

is the

Swiss Francs

original

Gulf,
intensively
heavy density

Cash.

more

.>

used, but together these represent a segment of a
operation between Chicago and New Orleans despite being in
competition as to longer hauls with the Illinois Central and lower

Advances to Customers, etc........

1

Filosa Sees. Co. Opens

barge and steamer service

on

the Mississippi River.

But even '

freight rate erosion,,at
the road made "several important
adjustments," according to its 1954 report, "which are expected to
restore considerable tonnages to our line."
It was stated further
until

least

that

1954.

In

that

number of others

a

year

f

v

.

.

.

532,188,689^ '
8,462,073

■

........

Bank Premises and other Property. /
Total S. Fes.

v;

11,500,000

3,148,932,805

pending.

were

25,693,245.
1,203,094,022

Government and other Securities!.;
Other Assets

-

582,588,419,

.

Short Advances

there has been only minor evidence of

424,046,465

.

Bills Receivable

;*

361,359,892

.

Banks and Bankers

so
*

ij'

•

&

ASSETS

rate

..

Stone

a

having

December 31,1955

Statement of Condition,

The acquisition of the Mobile & Ohio resulted in the duplica¬
of the route between Mobile, Ala., and
Jackson, Tenn., the

Mobile

General Part-

a

GRAND

JUNCTION, Colo.Securities
Company has

Filosa

been

formed

with

r

!

offices; at 407

Main Street to enage in a securi- *
ties business.
Officers are Frank
R.

Filosa, President; William B.
Femberg,
Vice-President;'
and

The Gulf, Mobile & Ohio is

-

it

had

ranged somewhat lower in

Transportation
among
in

(cost)

Ratio

of

efficient operation. Although
the 1951-53 years, the road's

30.1%

of

revenues

the lowest and the road's wage ratio is

the low side.

on

an

in

1955

.

Filosa, Secretary-Treas-

"*nirank Pil°sa
Office

was formerly

Manager for Ralph

&

vis

Filosa

Co.

with

was

also

which

m. x>y-

Peter

L

wage

increases, and

Time Deposits

been

;

formed

Gulf, Mobile & Ohio at the present level of business. This is
equivalent to about $1.70 per common share after taxes based on

with

offices

at

331

Gulf, Mobile & Ohio

Sailer,

was

ton-miles moved

gross

one

per

partner

of

of

A.

J.

Sailer & Co. passed away Feb. 12.

Mr. Sailer had been
the

a

member of

Philadelphia-Baltimore StocK

Exchange since 1928.

.




of the very

fully dieselized and
from this date, the
first to dieselize com¬

NEW
Main Office, 15

3,148,932,805

1954.

The
were

corre-

99, Gresham Street, E.C. 2,

Although the Gulf, Mobile slipped somewhat in the past two

OFFICES

and 11c, Regent Street, S. W.l

AFFILIATE IN

to relative growth it is nevertheless essentially a growth
serving a territory capable of considerable further develop¬

Y.

W. 49th St., New York 20, N.Y.

LONDON

about

AGENCY

YORK

Nassau Street, New York 5, N.

49th Street Office, 10

freight, train hour—the over-all effi¬

1946 and the end of

&1_onding gains for the Southern Region and for Class I

member

25,782,733

.....

Total S. Fes.

60% and 40% respectively.

Philadelphia-Baltimore Stock
and

54,949,296

Other Liabilities

pletely. Further evidence of the road's achievement in gaining a
high level of operating efficiency is seen in the 100% increase in

A. Jackson Sailer

Exchange,

Acceptances

accrued by this road in

are

ciency measure—between

Jackson

("Obligations")

Payable

The other chief factor is that operations are
have been so since 1949. As may be inferred

Oinnis, and B. C. Dennis.

A.

were

1955.

has

C.-East-

Corporation

President; Noah

the

they

Bills

The operating efficiency of the Gulf, Mobile & Ohio stems
principally from two sources. One is the small proportion of branch
mileage and the satisfactory level of productiveness of much of it.

rh1^ R. Hixon,
Eo"Ievard- Officers
Charles
•

Fixed Deposits

Profit

Eastern Sees. Corp.
Securities

estimated to amount to about $2V4 million annually for

the

the 30% effective rate at which

76,000,000

2,013,403,441
526,272,159
244,585,500
17,367,755
30,571,921

Sight Deposits

associated.

JACKSONVILLE, N.
ern

are

160,000,000

Capital....;

Reserves

correspondingly

The latter is of particular significance currently

tending to minimize the impact fo recent

which

Swiss Francs

LIABILITIES
Share

was

.

Peter L.

•'

CHAPEL

PaUl A.

offices

from

business

preceding five

gained by trackage rights

Outing in June
on

'

Cass Johnson Opens

Opens
—

Harris is engaging in a

averaged over $6.00 per
years.
It may be well to
explain that "available income," which amounts to only 15 to 20
cents per year less than net income in the case of the
Gulf, Mobile
& Ohio, is that part of net income that remains after
sinking funds
have been provided for also.
share

This

outing

••v.v;'

"

w

' y

^•

share

common

per

branch

advantage.

Toied°hwill holdhftSB1956

summer

year's time would be almost equal to

V-

1

;

eastward

economy

Toledo Bond Club (o

Club of

.

raised against the situa¬
tion of the Gulf, Mobile & Ohio find a great deal, of compensation
in the current price of the road's stock which is selling at only a
little over 6 times 1955 net of $5.92 per share and produces the
aforementioned yield of about 6%%. Moreover, the quality of
earnings is well recognized in the low proportionate "pay out"
represented by the 1955 total rate of $2.50.
t'

southward

Hold

The Gulf, Mobile & Ohio thus may be

drift

until its well protected dividend—$2.00
per share regular and 50
cents
extra in 1955—produces the
outstandingly high, yield of
6%% at the current price, and is rivaled
among the Southern
roads only by Seaboard common in
this regard, and then only at

with

palliatives, and to place the

interests

,the.tax deferral.

119

The Gulf, Mobile & Ohio
operates 2,757 miles of road, the
"main stem" of which extends from
Mobile, Ala. to Chicago via
Jackson, Tenn. and East St. Louis. A branch to the east connects

partisan

ary

the average for Class I and 5% to

on

,'level of revenues that in a

104 ;

.

The

a

common

ahead without balance and at the

of

against 4.2%

number of roads.

a

on quite a bit of "fat" in the event it is later deemed appro¬
priate to bolster earnings by a reduction in the maintenance allow¬
ance.
A reduction in this charge to 3l% for instance, would pro¬
duce an addition''to net before taxes an amount at the present

; ii2

^

123

as

as a

laying

indices based

The maintenance of total
payments at the 1955 rate seems well
within the road's capabilities since "available income" amounted'

to
,

the

'V

123,

] times.

ac¬

money,

year-end

revenue

earnings at the ex¬
result, amoqg other things, freight
repair stood at only 3.3% of the total at the 1955

of maintenance and

in need of

cars

Class I Total

'

'

111

,,
"

aspects, but the road's

to

cries

■V\ *116

maintenance allowance must not be lost sight of.

generous

was

'& Ohio has not been one of the roads to pad

♦Partly estimated.

tempt to understand the true na¬
ture of the economic change go- *
ing on and the appropriate action

we

a

charged at the rarte of 33.9% of revenues in 1955 and
averaged the same figure for the past five years. The Gulf, Mobile

Since the market is inclined to place emphasis on growth in
.viewing the rails of the Southern group it is not altogether sur¬
prising that Gulf, Mobile & Ohio stocks seem to be somewhat in

j

These arelhe times which will
our abilities and our
courage*
abilities because

This

In any case* objections that may be

industries

test
our

107

1953

con¬

*

revenue

Southern Region

Ill

will have setbacks and

areas

Mobile & Ohio
1955-56 price range

The road's recent relative

by the following table of
>

we

times the entire
economy.

Gulf,

the

the 1947-49 average as 100:

on

That is the way our

changing

37,
of

8% 'for

.-J

prosperity

our

economy adjusts to
sumer

just under
lower limit

Gulf, m. & o.

of

us..

the

pense

have^ problems and adjustments

ahead of

price

to

placed at the equivalent of $1.56 per common share and it
have been a little less for 1955. However, the offsetting fac¬

tor of

ill both traffic and revenues.
trend is indicated

and strength
high order to keep our mone¬
tary and credit policy aimed al¬
a

ways

closer

may

enjoyed a
period of aggressive expansion and vigorous
growth, but it has had
some relative
relapse in the past fwo years from its forward march

monetary and fiscal authori¬

from

is

current

than the stocks of any of the roads of the
Southern group, which,
as a
whole, are favored by growth. Under the leadership of Mr.
I. B. Tigrett who died in 1954 the
Gulf, Mobile & Ohio

ties. It takes courage

of

the

common

time there is the constant

pressure

-v

By GERALD D. McKEEVER

election year

$700,000 for 1954 in which these ship¬
until the year had become quite advanced.

some

Gulf, Mobile & Ohio common is highly leveraged, the 917,235
by 283,438 shares of $5 pre¬
ferred stock and about $74 million of funded debt. Another factor
that has been a little disturbing to some observers is the large tax
deferral element reflected in the road's net income. In 1954 this

people

many

an

did not begin

shares of this issue being preceded
-

is

pressure

the

prevent

like the boom. In
one

just

against only

as

ments

recession is to

a

this,is

boom.

a

1955

my

boom and not let it

a

Yet

'the: greatest

found, in

41

(1089)

election year.

an

yet

way

The Commercial and Financial Chronicle

...

CANADA

years as
road

Swiss Corporation

ment., The road also sets a great deal of store by the importation
of iron ore through the Port of Mobile, although this traffic is
shared with
enues

from

the Southern and the Louisville &
this business

are

Nashville.

estimated at about $1V4

360 St. James Street West,

Rev¬

million for

Tor Canadian Investments Ltd.

t

Montreal 1, Canada

t

Financial Chronicle

The Commercial and
42

.

.

Thursday, March 1, 1956

.

(1090)

Steel

Investing for Income

I

National Income Series
ROBERT R. RICH

By
«

objec¬
provide an

mutual fund, the primary

of which is to

tive

investment in

a

Although

M. I. T. Shareholders

diversified group

preferred and common
of their

of bonds,

relatively high current yield

and

of its <Jonregard to the risk

reasonable expectance

involved.

Prospectus
information
may
be
from your

and other
obtained

investment dealer or:

retain their holdings fo.r
market

the long term

National Securities I

of

Established 1930

i. New York

J

120 Broadway, New York 5, New York

Inn

"■ 11

' 111"1

Ml II II HUB

«—

-

tons which

.

sampling of shareholdings," the study notes, "in¬
dicates that a major percentage of present shareholders including
heirs and ^successors have owned their shares for 15 years or
longer."

tion.

"The

SELECTIVE

f^;HNCDlTD.

their

retained

"During other periods of decline such as in 1937 and 1946 and
recently in September, 1955, following announcement of the

all

request from the national

48

Alaska,

Hawaii,

Rico,

Puerto

Canal

Zone,

Guam,

The

354.

Established192*

s' rtSgj
and income^

various

one-fifth

nearly

net assets at the

individual

to

1955

of

year-end
was

the

trust's
$957,467,-

were

$791,073,860.

shareholders, the trust lists 10,544

*

!

of

assets

Television-Elec¬

Inc., in

Inc.
on
Jan. 31
$112,788,562, equal to

$10.99

a

Changes
Fund,

shareholder message
distribution
of

companying

ac¬

its

45th consecutive quarterly income

share after deducting
share paid to share- payment, reported that additions
the
fund's
capital gains, accord¬ to
investments,
ef¬
Paul A. Just, Executive fected since the close of the 1955

per

owners

ing

to

fiscal

Television

of

last Nov. 30, included

year

New York & Harlem Railroad Co.

Corporation

Management

and manages the series B mortgage 4s of 2043 and
fund.' This compares with net as¬ the common stock of Seaboard Air
which

A

prospectus

fund
your

is

each

on

available

investment

from
dealer.

The Parker Corporation
200

sponsors

$10.89 per Line Railroad Co.
The fund's investment in United
share, on Jan. 31, 1955. January
sales were reported at $2,784,100 Aircraft Co. 5% preferred stock
compared
with
$5,423,498
in was eliminated through the call
January last year. For the three for payment of the entire issue by
months ended Jan. 31
the first the issuing company.

sets

of

$79,231,429,

or

.

—

Berkeley Street.

quarter of the fiscal

Boston, Mass.

year

—

sales

totaled $10,072,126 compared with

$15,989,608
period

a

in

the

corresponding

earlier.-

year

Today's

dividend

amounted

which
per

to

10

distribution

cents

per

with nine
share paid in the first
compares

ter of the

■

MS
pi

share,
cents
quar¬

1955 fiscal year.

Yv''vY/:y/y;";y

As

accumulate

investment fund offering

that

out

amounted to $7,728,against $7,837,524,000 at
the end of the previous month,
and $6,240,767,000 tPyear earlier.
New
share sales,, reached $123,-;
146,000

in

Incorporated Net j

been

revealed.

next

stocks selected for their investment

pectus by mailing thi3 advertisement to
\jJNOjy

of

As

Dec.

Inc.

31, 1955, shows net
fund increased to

the

of

assets

Fund,

$8,304,394 as compared with $5,606,330 a .year earlier. This in¬
crease
of $2,698,064 excludes
$284,512 distributed to sharehold¬
ers during the year from realized
security profits.
The year's in¬
crease, including such profits, ex¬
ceeded
53%.
During
1955
the
number of shares outstanding in¬
creased

by 40% to va total of 844,shares, and J the number of

756

shareholders increased about 25%.
Net

value' per share as cf
1955 is indicated as $9.83,

asset

the basis of

844*756 shares out¬

T h i sWeompares to a
of $9.35 with 599,510

shares

outstanding at the end cf
'

•

■.

-

has

1955, is
$37,-

with

share net asset va'ue ris¬
ing from $15.73 to $19.C6 after
pavment of a capital gains dis¬
tribution of 26% cents. Profits cn
sale
of
securities of $1.11 per

realized in 1955, will also

share,

distributed to stockholders on

be

Feb.

report to stockholders by
President
Charles Devens and
In the

an

31,1954.

A.

excellent year for the

and

economy

can

Parker,

Ameri¬

that therefore
in

the fund remains fully invested

securities

selected for

their

con¬

formity with its investment pol¬

icy.

report' cites econom;c
contributing to the sound¬

The

forces

stability and long-term ex¬

pansion of our economy. .These
forces include wider distribution
national income, a 5X fold

crease

Dec.

William

Chairman

management of the fund states its
belief that 1956 will prove to be

of

on

Yyy

10.

share on D$g^ 31, -1955. was
$17.02. 'This compares with $16.10
on
Sept. 30, 1955; wand $14.02 per

in 30 years in

and
development,
investment planning
by industry, of which the $3 bil-

for

long

research

-

range

j
Common Stock Investment Fund

A

objectives of this Fund
passible long-term capital and
growth for its shareholders.

Investment
income

Prospectuses available
these

mutual

local

investment

funds

on

through

firms,

or:

HUGH W. LONG AND COMPANY

i

.

Prospectus

upon

request

incorporated

,Elizabeth

3,

New

Jersey

Lord, Abbett & Co.
i
New York

v-',

h
—

Chicago

—

in¬

expenditures

<

are




31,

asset value increased

Net

ness,
•

ONE WALL STREET, NEW YORK 5

Address.

Dec.

;

320,624 during the past year,

share value

Established 1894

Name.

at

$235,273,615

of Incorpo¬
record h;gh cf

assets

net

in

Rise

the per

Investment

Mutual

Diversified Growth Stock Fund, Inc.

wm)

Million

Assets $235

their plan¬

&

Manhattan Bond Fund, Inc.

com¬

BULLOCK

as

with

"steel

traditionally

de Vegh Income. Fund, I ~c.>

quality and income possibilities.
Send for a free copy of the booklet-pros¬

CALVIN

of the i
member

open-end

companies

429,000

the
three years.",,,■

share

mon

formal

no

of Jan. 31, net assets

association's

in the rational economy over

1954-

Fundamental Investors, Inc.

-

Diversified Investment Fund, Inc.

diversified list of

re¬

accumu¬

plans to add to his holdings."

per

a

has

who

shareholder

announced that ife net asset value

mutual

1955

in

typical

only be construed^as an indication
of the potential growth inherent

standing.

a

the

rated Investors to a

on

:

:

Jo

investors

that

ning,, and their proposal to aug¬
ment facilities by-about 12% can

Dec. 31,

investment in

younger men

plan-holder is 41 years old,
years
younger
than the

12

or

from

Vice-President
Shares

I

shares for the first time, '
"A survey of mu-r

fund

lation

contracts with
expire," it was

conservative

most

Investment

have

makers

cents per

51

points

Corp.

Reports

Diversified

Fund,

amounted to

D. I. F;

Portfolio

At $112 Million
tronics

labor

unions

steel

the

institutions.

other

TV Fund Assets

Net

..

that
and

~ in
January,
compared
$109,783,000 in the same
stated.
y'/// month of 1955. Share redemptions
totaled
$40,478,000
in ' January,
However, the study added, with*
general industrial activity and na¬ as/against $47,299,000 redeemed
tional
consumption
holding
at in January of 1955. Cash, U. S.
Government securities and shorthigh levels, it is doubtful if unterm obligations held by the 126
wieldly stocks of finished steel
mutual funds totaled $438,158,000
are becoming
commonplace.
>
>
at the end of January, with hold¬
Discussing plans of the steel
ings of $437,966,000 at the end of
industry to boost ..productive ca¬
December, 1955.
pacity by 15 million tons, or about
12% over the next" three years,
National
Securities & Research

when

July

fiduciary and institutional owners including banks and trust
companies, religious organizations, homes and hospitals, schools
and colleges,
libraries, clubs, lodges, pension funds, employee
benefit
plans, profit-sharing plans, insurance companies, and

Investors

ipital

hold

owners

comparable asset figure in 1954

addition

In

a

yy

,

.

larger

These

shares since total

lCorporated

sibility of

tual

vealed

as ar hedge against
increases or the pos¬
protracted strike in

made

/

■

.

means

buying ; investment

are

company

;

inventories are undoubtedly

being

more.

'//

to

more

said Mr. Burr.

com¬

become

attempts

undoubtedly

and

women

fihished tonnages

any

further price

shareholding at current market is worth about
$7,300, but a considerable number of shareholders have invested
larger sums, and more than $200,000,000 of the trust's shares are
owned by shareholders with individual investments of $50,000
or

of

may

"Some
steel

The average

Minneapolis 2, Minnesota

"This
more

available by
currently reduced requirements
of the automobilq industry.

tries.

669 Investors Bldg., 8th and Marquette,

industrial,

a record
single month.

any

and

supply
which

Virgin Islands, the District of Columbia, and in 40 foreign coun¬

DIVERSIFIED SERVICES, INC.

ex¬

ment, machinery and home appli¬
ance
demands are offsetting the

their

states,

number for

^

be

public construction,
steel warehousing, railroad equip¬

ownership.

new

for quarterly >or- monthly
purchases of shares in open-end

..

slump in steel production companies,

mercial

Massachusetts Investors Trust's 130,900 shareholders reside in
upon

•

.

normally >might

added that

It

In 1929 the vast majority of the share¬

illness, only a negligible percentage of share owners
holdings. In fact, during the September break,
issuance of the trust's shares substantially exceeded redemptions."

Prospectuses

in
ac¬

B.

plans

production has failed
to make an appearance to date,"
the study declared.-\7:/

President's

distributor and investment managers

lowering
shareholders,

Edward

to

investors opened 122,990

ary

automobile

more

redeemed

cording

pected to accompany a decline in

periods of unusual market activity offer
evidence that our shareholders regard their shares as a

holders

— •

which

"Studies made during

STOCK

prevailed during Jan-

by the economic staff of National
Securities & Research Corpora¬

largest shareholders about one-half made
original purchases more than 10 years ago, the study iJeveals,
and adds that the shares purchased in 1924 by the trust's first
owner are still held over 31 years later by his heirs.

long-range investment.

gradual

a

the age level of

million

,

them as a long-range

recent

further

126

Burr, di¬
there is little reason to be¬ rector of public information for
that
output in 1956 will' the National Association of In¬
decline sharply from the 117 mil- " vestment Companies.
;
y
lion tons produced in 1955, ac¬ ■,
Reporting on the Association's
cording to an analysis of the na¬ 126 open-end member companies,
tion's steel industry as prepared Mr.-Burr revealed that in Janu¬

Of the Trust's 20

imc.
FUHD. mC.

about

lieve

their

(AUTUAl.

indicates

uary,

tend to hailg on to their shares and regard
"A

Corporation

Research

or

of

rate

increasing popularity of
fund accumulation plans

mutual

continue

to

—

Declining

The

industry

steel'

expected

Is

indefinitely its production at. the
annual

shares tend to
cash them in when the

slumps or takes ^a sharp dip?,;

investment.

Vv-

__

study made by Massachusetts Investors Trust, oldest and
the largest of these companies, shows that shareholders

A
one

Surveyed

the

be

cannot

investment company

Do the owners of mutual

stocks selected because

-tinuance with

Plan Holders

Output
High,
National
Reports

Mutual Funds

through

Age Level of

To Remain

/

Atlanta

—

'

Los Angeles

,

Volume

lion

183

Number 5512

•

..

expansion program for
an example, and the
extension of governmental power,
steel

Continued

from

1956-1958 is

*

r

v

;

.

,

'

•'

,

•

•"

-

"■

.

.

tribute

I

^7-year

history,

Vice-President

in the Fund's

the

of

-

J. -Wilkins,

A.

Fund,"

.r i'-'s/■*.':■ V"

\

" 'V ■&:

Mr. Wilkins stated- that
in

vestments

ord

'000,000

last year.

uary

1

>

Inc.,

Electronic Sales Up

in

summarizing

the year ended

it

found

difficult

most

l

cTTTTArrrrkXT.

oiiUAiiuiN

31, 1955,

this has meant that the lower sal-

reported to shareholders that in¬
vestments

newly added to the
fry workers have received the
security holdings during largest percentage increases. As a
tronic equipment in 1956 are ex¬ the
year included Burroughs result, costs Tor yard and
^station
pected to increase 20% to a new Corp., Carrier Corp., Kaiser Alu¬ -employees have increased at a
minum & Chemical
Corp., Na- ~ more rapid rate than have those
.peak
level of $800,000,000, ' ac¬
tional
Homes, Corp.
class
B, of Toad haul workers and, in adcording to the March, issue of
Owens-Corning" Fiberglas Corp
dition, it has been more difficult
•"Keeping Up," published by Tele¬ and Royal Dutch Petroleum Co.
to offset such wage increases.
It
vision Shares Management Corp.
The fund also reported that the has been found that railroads with

J

Factory sales of industrial elec¬

,

Fund's

,

important

net asset value per

near

sistently

near

share, after ad¬
(51 cents per share
of,
security
profits

a

FOUNDED 192 •

realized

amounted

announces

I

T

$s

assets

1

year-end.

1954.-

v:

'

During the

| quarterly dividend
|| 21 c a share from net investment
§| income, payable March 30,

and

the

at

close

of

9, 1956.

York 'f Capital

Fund

of

Canada, Ltd. net assets of Dec. 31,
1955 aggregated
$27,457,924, equiv¬
alent to $28.54 per share,

WALTER L. MORGAN
President

according

to

the

annual

with

pared

Dec. 31,

Net

V

the

This

report.

$24.85

per

share

on

per

share

close

National

directors
stock

was

income

through

and

for-1

common

growth

ment

31

have

prospectus on request
from your

investment dealer

Distributors Group,

Incorporated

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

effect

be

paid
shareholders of

;

Whitehall

of
a

will

27.

have

to

2-

March

record

at

,/;r

Fund,

declared

its

a

The dis¬
on

•

a

directors
stock

dis¬

2-for-l

a

shares. \ The

/

split

distribution

will be paid on March 31 to share¬

holders
•

of record

Axe-Hovghtoji

holders
stock

that
tnat

has
nas

ness

in

have

at

Feb.

Fund

27.

B

share¬

approved a 3-for-l

split by voting to

Feb.

increase

Keystone Company

Delaware

your
ten

Funds.

prospectuses

151-

of

Jan.




17-year
April 20,

was

split

of

the

makes

may

Fund

reported

to

The can
ine calivary

that
nidi

management
mdiidgemeiu

decisions

important
traffic

influence

Northern. All of these^operate in
growth territories ahd in eaeh m-

and

^

dv

Of. the six with

stance it is anticipated that the

already high, degree..of operating
prn&

is

fonr

anri

onPratpH

provea in tne current year.
°n
speculative side, I still

lthp

count?y lT

the

takgs

With the many serious prob-

etc.

to

in

face

W.

railroads have had

the

that

lems

recent

still

and

years,

the

Linton

compared with $18,of Octr31, 1955, an in¬
15.7%. A year ago on

1955-,! the net asset value

.

cents or more to accomplish thq
i

same purpose,
:
;

the

Similarly,

■■■*y*

,r »

1
Class I

-

.

carriers

of

increasing

,

»

.v

.

a

3S 3 whole lust yesr 113d 3 pre—tux

tprp

from

way

^ ?a.ven

f0r
for

There

railroads

JY.F
I

of

<

^
fnr

were
had
orofit

les?

Qr

u

'

that

?i
15

0

uroaas Tnai uaa proiit

margms
apairi

low of 3.5%

®

Virginian.

maior

a

significant

? IF.

•+

.

il1io

£

Here

that

the

th

tions

The

comounv

roads js nGt
has

been

a

phenomena, it

new

consistent

pretty

^nce thTend ^World

ever

War II

had

profit margins of

more than
railroads—Vir-

railroad
has im-

margins above 30%, and Chesapeake & Ohio with 27.4% and

during the past
But, I am just as
that in many instances there
sharply

proved
10

to

15 years.

a

long way to go.

Long-Term Record
I have outlined some of the different influences that

weigh with

nronoses

this

pIan

is

suceessful,

as

I

am

convinced it will be, the last rerpririrtinn?

mainincr

imnntiPH

nn

5?amil^f restrictions imposed on
rai[road

iHs.tn?.

in

earlier debt read-

nliin<! will hP PliminatPrt

I plans win op enmmatea.
open

the way to

Three

coal

ginian, Norfolk and Western and
Western Maryland top the list followed by Kansas City Southern,
St. Louis Southwestern, Denver &
Rio
Grande
Western,
all
with

status of a railroad

^

ttiy

favorite would be. Chicago, Milwaukee, St. Paul ahd Pacific. The
road has traditionally been a low
Pr°*!t .^FF? propeFty bu5 ltJs
indicated that some change for the
better is now under way particularly W1fb respect to yard operations. The road.. will benefit
substantially from a change in
divisions of rates with eastern carriers that went into effect on Jan. 1.
Fmally, it is my opinion that material benefits will flow as an mdirect result of the new arrange-

Southern Railway 26.1%. Here
again, the roads represented on
the top of the list have been there
fairly consistently over a period
of quite a few years. This profit
margin is a highly important to<il
for measuring the investment

aggressiveness
of
generally

management

no'w

b Thfs ta? prOfit"margin terTly "nd on the stock'
muioritv of Gustorn ruilthe lowGr pricG group

thG

and

a

piiminatrng

JP11110n tnus eliminating

establishment of a regular quar-

25%.

As

reduced be-

were

of the onerous sinking fund.
provisions and dividend restricmany

nt mat tne Thiamin turn will

matter of fact,
I might say that this question of
management is the most important consideration at the present
time. There is no question in my
mind that the caliber, imagination
importance.

rpmii?p-

t

contingent interest require

profit margin of 15.5%. For the to exchange the income 4%s oarindividual railroads the range ran for.par int0 fixed interest 4&s. If

face, the question of quality,
On the other end of the scale
capability, and depth of manage- there were eight railroads that
become

^^prehensive^ebt refunding and
retirement prdgram. ?hxed chafes

^ments combined

t

must

has

confer the outlook for Baltimore
^ Ohio as encouraging. A milestone ln tbe c?mPaPy s

traffic and one that has to spend
4o

year" im"

provedin the enrrent

•

southwestern

or

vast difference in the status

a

volume

aggressive solicitation
policies, costs through modernization progrums, finunciul policiGS,

ment for joint transcontinental
Pass®FSe^uoper^flons1.xY ?
PJI
Pacific. The above list does no
JPcl.u^e a11 °f
1
that I-consider attractive at this
time. They are merely the ones
^ba^ * consider represent the bes
security. Ob- value over the coming year,

viously, the higher the profit margin the less serious will be the
operation and earn- impact of rising wages and fuel
individual railroads, and material costs.

a

varying impact on individual railThese

roads.

the

ings

$5,825,642. Net asset value per
was $6.53 on Jan.
31, 1956,
compared with $6.36 a year ago.

share

it i&
11 is

fleeted in the

31
as

sen*"

3

that

will

management

widely ana
wiaeiy and

of

How

wide

differences

are

re-

the variations may

be
wide

«.

_

.

„

.

R. C. Barber

Opens

GRANGE, Ind.—Richard C.
Barber has opened an office at
115V2 South Detroit Street to conf
LA

Price Earnings
as
range of transportation ratios, the
Railroad stocks generally are duct a securities business,
percentage of thg revenue dollar selling at relatively low price,*
spent on actually moving and earnings ratios. Yields are well
. .
a
Office
handling the traffic, and the profit above those available on similar
Upton Upens umce
margins, the percentage of the quality industrial stocks. In many
Lew Lipton is conducting a seis

best

revenue

Jan. 31,
State.

Of

a" the

ber

split-up is

fund's

PURITAN FUND, INC., net as¬
$21,314,737

on

experience

its profits

on

VI—MANAGEMENTVI
luzvr*X.

net

by

the

these yields will be further curiRgg business from offices at
within
the
next
12 130 West 44th Street, New York
profit months by continuing dividend City,

dollar carried through to

income

eral

margin
of

illustrated

operating income before Fed-

sets of the fund totaled

was

City —

The

$821,505 in January, 1954.

crease

Addrta.

the

according

424,131

Name

Pacific, IllinoisCentral and Great

nS? vSk CVnSal

freight

share¬

Nelson, President, totaled $1,049,368, a 25% gain over sales of

,

describing
Organization and the shares of your
me

to

21

be

largest January sales in its 17year history.
Gross sales for the

Street, Boston 9, Mast.

Please send

will

:

month

-

shares

history. The fifst was
1946, when the* stock

Custodian Funds

The

28.

in

2-for-l.

SO Congress

new

March

second

will

its

to

be derived from the freight serv-

holders of record at the close of
business

busidusi

nassenger
passenger

relation

drain

is still

the

COMMON STOCK FUNDS

than"those, at this time I would

TTn^ianri favorfSouthern Railway, Western

^f

Obviously, the road

large
large

a
a

revenues
ous

sure

The

delivered

BOND, PREFERRED AND

?

sections

subsuu

that the outlook

S' tL S iLfh" public utility requirements. Other

rev-

at a
aid

me

tinued export demand for coal as
weii as the expanding domestic

fewt rAinc

.

shares.

eystone

Pi?re

tra"sPWtatjon

western

conducted
conauciea

generally
generally

stantial loss.

the fund's authorized capital stock
from three million to 12 million

t

5°w.

r.ar?s

central

BUSINESS:

to

v

much

PASSENGER

V

seems

Toads—Chesapeake & Ohio, Nor-

little imagination to see that there

ment

Inc.

100%

tribution to effect

quality.

as

,

e. maJ°r railroads, there f0ig & Western and Virginian—is
SF® Slx ;.ast year
Jrar^Por~ quite favorable based on the con-

pro-

throu gh

v

Corporation
declared a 100%

split of its shares.

to

Feb.

stocks

selected for their invest¬

,

times

that

pointed out.

Investors

distribution

tribution

'for

four

'

•

.

and

enue-

1955

quar¬

r

miles

>ce.

value

of

V-

investing

200

It

or

at

1954.

asset

terly report, it

STOCK FUND

A mutual fund

com¬

compared with
the starting net worth of the Fund
of $23.35 per share and
$28.57 per
share at the Sept. 30, 1955

Incorporated 1933

originating

year

is
is

New

<•:<

Group Securities, Inc.

of

.

for the three so-called Pocahontas

industry'groups: electronics Passenger business and particu- and prospects of a read that has
instrumentation, oil and gas, larly short-haul local and comchemical and drug.
mutation service is expensive and fvejy revenue dollar to handle the

and

1956 to stock of record March

OF

cost

.

.

those *roads

have

moves

it

cuces

1955 the fund
investments in three

its

paid

have

roads

Attractive Rails

broad

'

THE COMMON

"the

that

;,

.

these

is essential.

past

if

reported

of

taxes. As 1 have said, selectivity

con-

t0Rj or cpn.
bottom,, how-

ever, it must be accepted as a true
0f the company's capabilities

which do relatively little terminal
work
I might bring out the fact

compared

Dec.

on

more

amount

reduced

is:

as

than

decade

1955

1954

at the

squeeze

terminating any shipment is just
as
high if it travels 50 miles as

consecutive

^

$11.52,

31,

a
much
during the

experienced

31, 1955
totaled $12,878^46,
reflecting an
increase of $1,616,192
over
the

105,h

M

Net

Dec.

on

to

with $10.29

its

have

serious

1955. Net asset value

share

per

H M»

in

is

road

a

the
the

measure

length of haul of freight is low,

produced $ 17.9% increase in

distribution

WELL1NGT0V

When

sistently

heavy terminal operations, particularly
where
the
average

justment for

m

be particularly hard hit by the

lag in the inauguration of increased freight rates. Moreover,

expenses may

be. temporarily influenced by ex-traordinary a n d non-recurring both

-

year

and New York Central, both having, rather high wage ratios, will

criterion of the individual

as any

railroads status, as

.

-

fpr-DMivAT

TTr

to

Generally
speaking
wage > in-" jactors< As a matter of
fact, this practically nothing in the way of;
creases
granted in the postwar was true of
Delaware, Lacka- Federal income taxes in recent
years have been on a cent-per- wanna & western last
year when years and any increase in earnhour basis, with
all classes of it was
severely afflicted by the ings from here on presumably will
employees getting practically the fall fioods> it is
long-term be retarded by the necessity for
same dollar increases.
Obviously, record and the trend that are making some provision for such

operations

Dec.

seen
man¬

agement will have to increase
maintenance outlays substantially,
in the current year. Pennsylvania

for Virginian to a high of 47.4%
for
Delaware, Lackawanna &
Thus, as wages have Western. At this juncture I might
gone up the roads with the great- point out that it is rather dangerest amount of this type of traffic ous to take merely a single year

Diversified Growth Stock Fund,

for

be

terial improvement in this respect,

labor factor.

Gain

orts
♦

to

the recent

agement change will bring a ma¬

freight, it is generally expensive
handle because it has a large

Diversified Fund

established in Jan¬

Cnneintly Attractive

to

control expenses.

the previous record '

over

^)f $6,853,000

investment

Fund

$7,879,000, up more than $1,.-

it /remams

Therefore, railroads
Last year the Class I carriers Similarly, New Haven is not concarrying a large percentage of had an indicated transportation sidered to be attractive at this:
such type of traffic have been ratio of 37.2%. Among the major time. Aside from the basic operat-,
the most adversely affected. Also carriers the indicated ratios ran ing difficulties, it has been made
with
respect
to
less
earload all the way from a low of 19j6% fairly.bbvipiis that the new man-

have

shares in January reached a rec¬

and

whether or not

competition.

in¬

new

Wellington"

•

net

divi¬

income to $43,589,218 since
Group Securities' inception.

re¬
f

ported.

from

in

income for the first quarter,
ending Feb. 29, of the cur¬
rent fiscal
year, Herbert R.
Anderson, President, reports.
This
brings the
total
of
dividend payments from net

r

with largest sales vol¬

year

of any January

$1,043,877

dends

Wellington Fund started off the

ume

Rail Stocks

'

Group Securities will dis-

*

^
At New Peak

new

tion

In Dividends

-

WelKngtonSales?

instance, Chicago & North West¬
ern is still a very high cost opera¬

7

page

One Million

;iiot only to tax, borrow and spend,
^but' also to control credit.

41

(1091)

The Commercial and Financial Chronicle

.

taxes.

reflects

all

This

of

the

costs

operating the railroad includ-

ing

credits

or

debits

facility rents and hire
ment.

for

increases. It is my

opinion that the

market cannot long ignore

these

joint considerations. Of course, the out-

of equip•

cases

enriched

B.

Mitchell, partner in

is not so fa- Wood, Walker & Co., New York
the coming year. For City, passed away Feb. 13.

look for every rail
vorable for

John F. B. Mitchell
John F.

44

Chronicle

The Commercial and Financial

(1092)

Continued from page

5

the

below the total of 267 for

level, failures continued 14%

pre-war

; -v

,

similar week

1939.

of

'*

-

'

of

caution

buying

the current week.

mand

for

slower

found

-

weekly reported a slight easing of
product most noticeably affected by

de¬

pace

opening second-quarter books for business
customers, other than automotive, who did not want

Continuing the

far

'

■

general can't profit ftom the auto cutbacks before March
That's when cancellations and deferments largely
become effective, it paints out.

in

corn, rye,

side

metalworking weekly said Steelmakers seem noticeably
confident of a snapback in automotive demand with spring just
around the comer. The seasonal tfurge in car buying is expected
to cut into the large stockpile of over 650,400 autos reportedly
The

with

car

back

on

steel

their

commitments

current

steel

mills

and,

steelmaking
an

$127.91

high of $53.33
The finished steel

American

Iron

and

Steel

declined

now

Substantial amounts

Government.

improved
vanced

slightly,

out

the outcome

of the

present farm

bill

Export sales of

wheat

of

week

ingot

beginning Feb. 27,

and

steel

for

castings

98.9% of capacity, and 2,433,000 tons (revised)
The

based

For

annual

capacity of

the like week

2,444,000

tons.

a

A

128,363,090 tons

month ago
year

placed at 2,218,000 tons

was

ago.

industry's ingot production rate for the weeks in 1956 is

on

duction

week

ago

or

the rate

of

Jan.

1,

Coffee

1956.

during January

were

99.3% and pro¬
weekly production

Trading in

The operating rate is not

firmness

date

it

1955

week;
comparable

increased
week

1,552,000,000

and

kwh.

or

2,881,000,000 kwh.

16.0%
over

March 25, 1954, Long Island
Arena, Inc. intends to build and

like

and

Output Decline the Past Week Estimated

Last

week

outPut dropped below that of the
previous
week by 3,875 cars, while truck
output was lower by 160 vehicles
during the week. In the corresponding week last
171 188

year

cars

•

in

and

15,053 trucks

.uLa T1, T6]5 /e.
United States.

the

week and

were

assembled.

reported there agency
were 23,067 trucks made
This compared with 23,227 in the
previous

15,053 a year ago.
Canadian output last week was
placed at 6,500
In the previous week Dominion

trucks.

1,314 trucks, and for the comparable

1955

o20 trucks.

week, 8,218

and

1,226

industrial

failures

week ended Feb. 23 from 252 in the

declined

to

cars

and

121,277 bags

early

the like

on

Livestock markets

were

Wholesale

buying in the week

was

sales

on

a

basis

as

.

230

in

tion of the

equipping it for operation, in¬

if all

Feb.

re¬

ported. For the four weeks ended Feb. 18, 1956, an increase of 6%
recorded. For the period Jan. 1, 1956 to Feb. 18, 1956 a gain
of 2% was registered above that of 1955.
Retail trade in New York City last week was affected by un¬

be

to

minimum.

a

confined

to

Trade

1%, either

as

a

sales volume

consequence,

observers estimated

way,

that

sales

the

of

for

The

For the four weeks

increase of 1%

ending Feb. 18, 1956,

preceding week, Dun & Brad-

an

For the period Jan. 1, 1956 to Feb.

recorded

rise of 2%

a

.

"

-

/

-

"

In

year.

outstanding

has

company

FHLB Notes
Public

/

offering

Series

of $164,000,000
Banks 3.05%

1956

notes,
due

and

made

Federal

through
agent

Jan.

today

securities

15,

1957

(March
Loan

Home

the

con¬

dated March

Everett

of

assistance of
of

non-callable

A-1957

solidated

Market

on

Federal Home Loan

1)

15,
is

by

Board

Smith,
fiscal
with the

Banks,

a

nation-wide group

dealers.

The

notes

priced at 100%.

Proceeds

of

the

offering,

to¬

Banks, will be applied to retire¬
ment
on
March
15, 1956 of a
maturing note issue in the prin¬
cipal amount of $180,760,000.
Upon completion of the offering

recorded.
was

18, 1956 the index

above that of the corresponding

•

gether with current funds of the

increase of 5%

registered.

1955/

was

•

524,735 shares of common stock.

would

City for the weekly period ended Feb.

an

it

and of equipping

arena

operation.

are

from last year's volume.

preceding week, Feb. 11, 1956,

525,000 shares,

sold, together with funds

are

hand, will be sufficient to pay

was

'According to the Federal Reserve Board's index, department
in New York

and

arena

the entire cost of the construction

to

was

seasonably cold weather and

the

of

from the sale of the

taken

was

The overall cost

arena.

construction

the

increase of 5%

including the construc¬

purposes,

being

the

the

available for its general corporate

In the preceding week,

an

com¬

pany's general funds and will be

18, 1956, increased 6% above those of the like period of last year.

Feb. 11, 1956,

the

that

operation by Sep¬
\ •/
?

Net proceeds of the present fi¬

unchanged from the level

country-wide

the

cluding parking facilities but ex¬
cluding the cost of the land, is
estimated at $700,000. The com¬
pany estimates that the proceeds

previous week, but slightly exceeded that of the cor¬
responding week last year. An upsurge in the re-ordering of
women's Spring apparel occurred, and purchases of men's Summer
sportswear noticeably exceeded those of the previous week.
store

and

in

started

nancing will be added to the

the

Department

was

1955,

anticipates

tember, 1956.

on

from the Federal Reserve Board's index for the week ended

the

work

of

higher than a year ago, according to estimates by Dun &
Bradstreet, Inc. Regional estimates varied from the comparable
1955 levels by the following percentages: New England —3 to +1;
East 0 to +4; South and Northwest
+2 to +6; Middle West,
Southwest and Pacific Coast +3 to +7%.
of

for

obtained*,

of

Moderately Above Like Period of 1855
2

been

will be H

arena

was

recrea¬

necessary

plans

December,

company

generally weaker.

all

the

of

the foundation

on

moderately in the week and

up

18, 1956, increased 3% above those of the like period last

street, Inc., reported. Although the toll was the lowest in seven
weeks, it remained considerably above a year ago when 178 fail¬
ures
occurred, or in 1954 when there were 204. Compared with the




were

compared with

Lard finished higher reflecting strength in vege¬

year ago.

store sales

and

as

cars and

Business Failures Moved Lower in Latest Week
Commercial

cocoa

and

prospectus,
have

arena

202,413 two weeks earlier.

held
cars

plants built 6,038

as

the

approvals

active with prices showing some
the result of better trade buying.

6%

the

car

by

at the

more

The total dollar volume of retail trade in the week

to

industry assembled an estimated 124,453 cars
compared with 128,328 (revised) in the
previous week. The past
week's production total of cars
and trucks amounted to
147,520
units, or a decrease of 4,035 units below the
preceding week's
output, states "Ward's."
6
s

a

was

week-end

313,840 bags,

Was

Car output for the latest week ended
Feb. 24, 1956 according
to "Ward's Automotive
Reports," was estimated to be the lowest
total of the current year.
tf

stimulated

Trade Volume Showed Strength the Past Week and

>

Be the Lowest for the Current Year

V

buying

sonal record.

Loadings of revenue freight for the week ended Feb.
18, 1956
increased
13,991 cars or 2% over the
preceding week *the
Association of American Railroads
reports.*
■
Loadings for the week ended Feb. 18, 1956, totaled 698,319
cars, an increase of 48,071 cars, or 7.4% above the
corresponding
1955 week, and an increase of
79,696 cars, or 12.9% above the cor¬
responding week in 1954.

U. S. Car

with

events

Commack, N.Y.,
in Smithtown Township, Suffolk
County, Long Island. According

Repossessions during the week of
Feb. 10 amounted to only 41,000 bales. So far this season growers
have placed 6,868,000 bales under Government loan, a new sea¬

Loadings in Week Ended Feb. 18, Advanced 2%
Ovef • the Previous Week

5

;

;

rise

commercial

tional activities in

CCC 1955 loan program in the week ended Feb. 10 were reported
at about 112,000 bales, compared with 126,688 a week previous,

week in 1954,

Car

an indoor arena for sports
events, entertainments, civic and

operate

The rising trend in domestic raw cotton prices continued dur-;;
ing the week reflecting dwindling certified stocks and the still
mounting total tied up under Government loan. Trading in spot
cotton in the 14 markets was less active and totalled 318,100 bales
during the week, as against 357,500 the previous week and 167,400
in the corresponding week a year ago. Entries of cotton into the

above

the

the

at

table oils.

The amount of electric energy distributed
by the electric light
and power industry for the week ended
Saturday, Feb. 25, 1956,
was estimated at
11,277,000,000 kwh., a decrease below the week
ended Feb. 18, 1956, according to the Edison
Electric Institute.
This week's output fell
44,000,000 kwh. below that of the
the

to

Sh.

Organized under New York law

to
cocoa

Warehouse stocks of
totalled

Electric Output Eased Further the Past Week

previous

continued

a

Co., New York

on

year.

the Chicago Board

on

&

share.

wholesale level.

comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based an annual capacity of 125,828,310 tons as of Jan. 1, 1955.

.

prices

of

are

estimated at about

were

sharply from January last

expectations of another general advance in roasted coffee

was

the actual

91.9%.

as

issue

mon

recent

Trading in grain and soybean futures

with

compared

as
a

I

•

City,
offering 525,000 shares of com¬
stock (par 10 cents) of Long
Island Arena, Inc. at $1.50 per

reported sold to various

were

was less active last week.
Daily average sales totalled
33,600,000 bushels, against 35,400,000 the previous week and 42,
400,000 a year ago.

1956, equivalent to

authorized

an

Stock at $1.50

of Trade

tons of

of

Dunne

principally out of surplus stocks of the

of

corn

up

/

Long Island Arena

v

precipitation. Corn prices ad¬
the result of continued small offerings.

as

v

> ^

Following completion of the fi¬
nancing, there will be outstanding
641,250 shares of common stock,
2,000,000 shares.

Prospects for Winter wheat in the Southwest
the result

as

other exploration work as
be indicated for their com¬

plete exploration.
-

evalu¬

by drilling and

somewhat quieter a week ago, reflecting

countries in recent weeks

of

•

such

A firming influence in wheat was the heavy movement of
cash grain from the Chicago market and a consequent tightening
of "free" supplies.

the

that

were

surrounding
in Congress.

10,000,000 bushels,

capacity for the

tinuing with uranium operations
on
the
Silver /Bit: unpatented

may

a year ago.

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry will be at an average of 98.4%
2,422,000

Exploration Co. was
incorporated in Colorado on Nov.
9, 1955 for the purpose of con¬

prices at the wholesale level.

Continuing its mild but steady upward movement into the
straight week, the Dun & Bradstreet daily wholesale com¬

Grain markets

at

announced

•/„/■

purposes.

Monitor

Commodity Price Index Extended Its Upward

uncertainties

to

remains

composite

Institute

porate

floiir, wheat,

ate the properties

responding date

ton.

a net

The

price

It

ton.

gross

a

This compared j

drop of 10.8% from $6.65

modity price index reached the highest level in about two and a
half years the past week. The index finished at 281.82 on Feb. 21,
comparing with 281.24 a week earlier and with 276.26 on the cor¬

dropping for the fifth week since it

scrap

all-time

the Silver Bit

pay

ty, New Mexico/and will

fifth

,

from $49.

the balance due

notes and other in¬
debtedness, and used for working
capital and other general/cor¬

claims,

Trend the Past Week for the 5th Consecutive Week

pointed out it is not likely any tonnage will go begging
for buyers so long as over-all demand exceeds supply, as in the
case
particularly in plates and structurals. Should demand for
sheets shrink to the point where excess capacity were available,
sheet mills can be counted upon to quickly shift their production
emphasis to plates, a product which is particularly in short supply.
Diversion of greater semi-finished tonnage to production of struc¬
turals would take up some slack, it added.
The scrap market continues weak with "Steel's" price com¬
on

from

the purchase of

on

year ago.

were

to use-the net
the sale of these

planned

securities to pay

re¬

Steel

$48.33

i

claims located iq McKinley Coun¬

are

attained

,

is

is to show the general trend of food

indicated

posite

It

proceeds

lard, sugar, coffee, cottonseed oil and eggs. On the down I
oats, barley, hams, bellies, butter, cocoa, steers, hogs and
s;v
/;■/•■;;
/ •";V/'. •'//'
• '/

Wholesale

liquidating their excess steel inventories, they have
they will want their full steel quotas for May and
June. This seems to mean they anticipate a substantial quicken¬
ing in their production schedules in about 60 days at the latest,
this trade weekly notes.
"
portedly,

.

share.

The index represents the sum total of the price per pound of ./
31 raw foodstuffs and meats in getieral use and its chief function

continues,

requirements
the

to

were

lambs.

While autobuilders are cutting

production slowing down.

Feb. 21.

on
a

(par

stock

Exploration
corporation) at

Colorado

(a
per

Indecision

.

-

automotive

in

Retrenchment

a

are

shares of common

Co.

..

up

Higher in wholesale cost the past1week

and^ April.

in the hands of dealers.

the like date

on

New

offering publicly,
speculation, an issue of 300,City,

five cents) of Monitor

Slightly Lower the Past Week

with $5.94 a week earlier and marked

consumers

a

$1

slightly last week to stand at $5.93

i.

mill shipments of sheets are concerned,

as

reported as compared
in the corresponding week

were

and down movement of recent weeks, the ;
wholesale food price index, compiled by Dun & Bradstreet, Inc., 1
fell

ported. : :\//^;//'
So

failures

Price Index Moved With

and Turned

preferring to await May lead time before taking action. Cautious¬
ness is also being expressed in bars to
some extent, "Steel" re*

Canadian

Wholesale Food

offered them for April, according to the publica¬
Some did not wish to commit themselves beyond that month,

all the tonnage

tion.

as

000

in

mills

some

York

Concerns failing with liabilities in excess of $100,000
against 11 in the preceding week.

with 34 in the preceding week and 31
of 1955.

;

Securities .Corp.,

Globe

,

remained above the 221

as

Thirty-three

the

the
in the automobile industry.

sheets,

Sheet

year ago.

a

numbered 25

metalworking

week but exceeded the 156 of this size

decrease to 31 from 43, but the level

a

of

'

The

the previous

Exploration

Stock at $1 a Share

Among small failures with liabilities under $5,000, there

was

"Steel" magazine

bars, states

and

sheets

in

from 209 in
last year.

Thursday, March 1, 1956

.

Monitor

/

..Failures involving liabilities of $5,000 or more dipped to 199

The State oi Trade and Industry

..

period in

.

,

.

,

and
15

sues

to

the

retirement

of the

March

maturity, outstanding note is¬
of the Banks will be reduced

$878,240,000 from

$895,000,000.

-.Volume 183

Number 5512

v;

.

The Commercial and Financial Chronicle

,,

The

week
AMUtlCAN

WOK

AND

INSTITUTE:

STVEL

AMERICAN

Crude

PETROLEUM

Ago

,

*98.8

that date,

on

.Mar. 4

§2,422,000

BANKERS'

2,218,000

-*

'

7,116,050

Feb. 17

117,989,000

7,045,750
8,016,000

Feb. 17

each)—
Crude runs to atllle—daily average (bbls.)
Gasoline output (bbls.)——„
Kerosene output (bbls.).
Distillate fuel oil output (bbls.).
4a gallons

Feb. 17

25,899.000

25,899,000

7,044,950
7,952,000

6,767;300
7,511,000

26,566,000

-

are as

of thaf date:

DOLLAR

24,404,000

Feb. 17

2,723,000

2,594,000

2,627,000

13,730.000

13,437,000

13,575,000

8,953,000

9,317,000

189,428,000

187,618,000

175,785,000

176,877,000

19,541,000

20,069,000

22,711,000

20,170,000

Ago

-

BANK

$236,939,000
219,567,000

■

Z

„~I

I™™—:'.

8,667,000

—

Domestic warehouse credits
Dollar

»

37,572,000

exchange

Based

on

11,214,000

goods

stored

and

shipped

$251,682,000

$272,708,000

210.400,000

187,182,000

8,950,000 .10,315,000

54,125,000

292,542,000

16,742,000

16,572,000

'» *

between

8,925,000

9toefcs at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
Feb. 17

V-

12.640,000

Feb. 17

Month

■ertdnal fuel oil output (bbls.).

Kerosene

(bbls.)

Distillate fue)

Residual

oil

ASSOCIATION

at

(bbls.)

Feb. 17

77,850.000

Feb. 17

38,203,000

37,727,000

RAILROADS:

AMEfilCAN

OF

c

.>

'

%.

-

'J

*

t

*

Revenue

freight received from connections

(number of cars)

CONSTRUCTION

—

(no.

of cars)

Wholesale
Retail

699,286

650,2.48

Construction

Feb. 18

678,807

676,609

677,483

632,048

commercial

$440,059,000

$268,250,000

$362,320,000

$312,218,000

Total

NEWS-RECORD:
Totdl

U.

construction—

S.

Private

construction

Public

Feb.23

—

292,854,000

.

OUTPUT

Bituminous

(U.

coal

BUREAU

S.

and

149,361,000

212,959,000

104,395,000

83,946,000

,1,57,618,000

lignite

Feb.18

Feb/18

Pennsylvania anthracite (tons)

10,090,000

'

506,000

*10,150,000
'•

,

■<->

'

output

FAILURES

(in

AGE

Finished

Feb. 18

100

'•

'

•

628,000

J

598,000

;

98

97

.v" 95

Feb. 25

11,277,000

Feb. 23

INDUSTRIAL)

AND

INC

—

DUN

BUSINESS

230

(E.

11,512,000

252

284

178

Export

5.174c

5.174c

5.174c

tin

•traits
Lead

$59.09

$59.09

$59.09

$56.59

Feb.21

$48.67

$49.00

$50.83

$37.00

Feb. 21

45.700c

43.300c

43.975c

COTTON

46.175c

45.525c

45.550c

at

In

32.700c

Feb. 21

of

DEPT.

S.

December

11,500

:«22,100

*$81,600

$76,900

36.900c

LINTERS

AND

month

public

of

DEPT.

—

OF

storage

of

Linters—Consumed

746,996

of

as

month

of

——

100.375c

104.125c

90.500c

16.000c

16.000c

16.000c

15.000c

15.800c

15.800c

15.800c

14.800c

Feb. 21

13.500c

13.500c

13.500c

11.500c

Feb. 28

95.70

95.86

95.91

96.34

Feb. 28

108.16

108.16

107.98

109.42

Active

spindle hours (000's omitted)

28

Active

spindle hours per spindle in place Jan.

Jan. 28

of Jan. 28__

as

1,808,241
13,528,730

.

;

141,934

123,894

1,397,615

1,418,864

1,831,075

19,399,000

U

active

716,045

1.699,257

17,592,790

156,484

January

100.750c

Feb. 21

spindles

855,447

1,712,495
17,289,089

28

Jan.

Jan. 28

Feb. 21

Stocks

~

1,978,400,000

COM¬

Feb. 21

Cotton

294,600,000

1

BALES:

as

$

$

$

2,418,700,000

January

establishments

consuming
In

OF

(000's

—_

MERCE—RUNNING

.

$43,300

12,300

*23,600

BY

at

Louis)

(St.

CORPORATIONS —U.

S.

omitted)

QUOTATIONS):

i.

*$45,700

12,300

»

at

(New York)

Lead

-

$82,100

COMMERCE —Month

4.797c

Feb.21

at

1

$37,872,0Q0

23,900

Consumed

at
(New York)

3,154,000

$41,643,000

/.V-

$45,900
:

DIVIDENDS—PUBLICLY REPORTED

U.

Feb.21

refinery

9,044,000

COM¬

OF

Total
CASH

Electrolytic copperDomestic refinery

1,106,000

9,725,000

PRICES:

M. i.

&

9,647;000

7,341,000

SERIES—Month of December

Manufacturing

90

11,321,000

.

lb.)

(per

10,775,000

$42,890,000

__

INVENTORIES —DEPT.

MERCE NEW

&

;

4,391,000/

6,163,000

Retail

Pig iron (per gross ton)
Bcrap steel (per gross ton)
It*. METAL PRICES

';••••,

.939

$11,636,000

10,867,000

2,974,000

——:

908

$11,554,000

14,936,000
—

——_

Wholesale

kwh.)

000

COMPOSITE
sf$el

fr

; 1,048

(millions of dollars):

'<

(COMMERCIAL

BRAD STREET,

•

INSTITUTE:

ELECTRIC

"Electric

WON

=

'

EDISON

•

8,935,000

87

4,375.000

.

—

.

liabilities

87

73

$14,442,000

—

■—

;

liabilities

136

195

j

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1947-49

,-vH;

585,000

•,<
1

10,540,000

uUj.-_.J-

-

liabilities

456

72

liabilities

Total liabilities

(tons)

DEPARTMENT STORE SALES

number

114

404

126

number—

104

535

.un¬

191

106

_

Commercial service liabilities

MINES)«'"

OF

209
-

number

Construction

"26,103,000

55,341,000

34,252,000

Retail

78,292,000'

$869,227,000

^
„_

service

$641,680,000

'

u___

.

Manufacturers'
Wholesale

207,823,000

118,198,000

29,404,000

_

COAL

150,052,000

147,205,000

117,801,000

Feb.23

construction

State and municipal—
Federal

♦

89,908,000

BRADSTREET,

January:

number

684,328

ENGINEERING

&

number

698,319

__

of

Manufacturing number
.

Feb. 23

freight loaded

ENGINEERING

1

INC.—Month

71,019,000

46,710,000
■'.v?'
H J,

t

.t

99,781,000

$624,301,000

BUSINESS FAILURES—DUN

.Feb. 18

Revenue

CWIL

94,610,000

39,012,000

r

'

110,342,000

Total

80,569,000

at—

(bbls.)

oil

fuel

Feb. 17

at-

9,171,000v

foreign countries

19,440,000

19,413,000

21,987,000,

22,219,000

22,495,000

19,399,000

19,440,000

19,282,000

9,577,000

10,992,000

9,184,000

478.8

439.7

459.2

'

(East St. Louis)

Blue

MOODY'S

at

PRICES

BOND

U. S. Government Bonds

Average

—

corporate

111.81

Group
Group

Industrials

110.88

108.16

108.16

107.98

109.79

102.96

102.63

104.48

106.39

106.39

106.21

107.62

Feb. 28

Utilities

Public

MOODY'S BOND

109.97

Feb. 28

108.52

108.52

108.34

Feb. 28

109.42

109.60

109.24

Feb. 28

<J. S. Government Bonds

/

2.82

'■

/

2.81

2.81

Aa

3.27

3.27

3.28

3.07

3.09

3.15

3.17

3.12

Feb. 28

Group

Utilities

Industrials
MOODY'S

of

3.59

3.48

3.37

3.38

3.30

3.27

OF

All

PAYROLLS—U.

LABOR—REVISED

3.25

3.26

3.16

Durable

3.19

3.21

3.14

Nondurable

404.2

403.9

407.8

398.9

.Feb.18

226,447

246,870

249,990

249,452

291,777

283,585

293,186

262,282

Feb. 18

AVERAGE

184Si

=

99

100

101

95

Feb. 18

545,180

613,937

577,998

419,484

:/

Odd-lot

—

SPECIALISTS

sales by dealers

107.00

107.47

107.11

Indexes

Feb.

1,190,414

Feb.

1,351,389

$86,644,582

$56,369,435

$71,393,463

856,980

1,011,115

966,395

1,700,303

1,069,137

1,432,752

Feb.

4,666

5,779

2,241

7,916

Feb.

961,729

1,005,336

854,739

$51,163,343

$53,007,826

Round-lot sale# by dealers-

t

•Feb.

4

Feb.

4.

'

$44,699,898

'Bhort sales

number

/

All

4

-

sales

Feb.

224,550

229,500

222,760

367,340

229/5OO

222,160

367/340

4

534,450

601,000

419,730

616,068

Surrender

1

4
4

4

432,780

277,300

728,590

,9,821,460

10,710,570

9,507,780

11,143,350

9,785,080

17,188,000

1,281,650

1,485,280

1,148,180

4
4
4

200,540

236,340

160,270

1,015,210

1,260,500

1,140,680

1,615,250

1,215,750

1,496,840

1,300,950

2,011,580

4

258,360

294,340

237,730

388,250

28,550

23,500

10,700

46,900

203,810

255,910

285,680

(DEPT.

232,360

279,410

296,380

sales

Total sales

475,268

445,042

504,276

Total sales

LABOR

—

Commodity
All

(1947-49

NEW
=

SERIES

—

u.

S.

4

93,280

55,120

50,190

524,467

464,485

420,689

617,747

519,605

470,879

DEPT.

CEMENT

$525,998,000
'

•

fr* >t

*$26,050

19,579

*19,619

19,242

*$45,669

$43,265

$24,023

*27,343

$24,097

£4,429,000

£13,000,000

£4,813,000

(BUREAU OF MINES)—

(barrels)

.

'

•

24.894,000

4

2,015,278

4
4
4

322,370

314,960

221,160

1,980,895

1,847,049

2,065,857

2,295,855

2,068,203

—

2,917,280

226

Feb. 21

85.7

86.0

85.5

93.7

Feb. 21

98.4

*98.7

98.6

103.2

Feb. 21

70.7

*72.3

73.1

85.4

120.2

*120.2

119.8

115.4

Feb. 21

112.1

111.7

110.3

Livestock

Meat

((Includes 793,000 barrels of foreign crude runs. §Based on new annual capacity of 128,363,000 tons
Of Jan.- 1, 1956, as against Jan. 1, 1955 basis of 125,828,310 tons.
tNumber of orders not reported since introduction of Monthly Investment Plan,
;

as

276

202

171

170

220

221
207

218

236

232

279

161

144

182

452

445

430

221

219

236

—

—

_—

products

and

239

260

264

201

253

205

204

155

222

eggs—

265

207

products
animals

Poultry and

220

284

$700,072

-

ESTATE
OF

FINANCING
U.

BOARD—Month

S.

—

of

IN

NONFARM

LOAN BANK
(000's omitted):

HOME

Dec.

Savings and loan associations
Insurance
companies

—

companies—
banks

—

and

trust

savings

Miscellaneous

Total

264

—

—

Oil-bearing crops

Dairy

243

221

225

grains and hay——
grains

Potatoes

Mutual

239

227

231

259

vegetables, fresn
—

Fruit

Bank

223

244

Wool

112.0

98

231

Food

OF

10,732,000

110

100—As of Jan. 15:

Cotton

3,294,870

1,890,186

8,753,000

101

products———

Commercial

2,712,245

2,224.662

22,766.000

——

Crops

582,625

1,743,487

23,826,000

BY
FARMERS—INDEX
S.
DEPT. OF AGRICUL¬

TURE— 1910-1914

farm

27,924,000
28.641,000

11,663,000

—

—

month—barrels)—

RECEIVED

AREAS

and foods

IN GREAT BRITAINLTD.—Month of Jan

Individuals




$435,673,000

27,288

*

NUMBER —U.

All

REAL

foods

Revised figure.

142,372,000

ISSUES

Capacity used (per cent)—

887,920

—Feb. 21

Meats

*

72,397,000

$45,859

.

—

BANK

CAPITAL

PRICES

748,525

100):

All commodities other than farm

71,445,000

163,043,000

SALES

—

PORTLAND

139,395

Group—

products

Processed

4
4

FebFeb.
Feb.

—

commodities

Farm

9,793,000
40,551,00#

71,667,000

$26,280
j.__

396,330

Feb-

-

PRICES,

-

Tobacco

purchases

WHOLESALE

of

MIDLAND

619,250

1,909,78(

of members—

Short sales
—

54,241,000

9,207,000
39,485,000

COMMERCE) NEW SERIES—
December (millions of dollars):

Nondurable

395,370

4

FebFeb.
Feb.

—

$207,594,000

53,464,000

OF

Feed,

Short sales

sales

$189,453,000

9,476,000
38,230,000

Inventories—

348,470

Feb.

4
4
4

Feb-

:

purchases

Other

$209,179,000
56,942,000

>•

Other transactions Initiated off the floor—

Total

-

Stocks (at end of

4

Feb.
Feb-

Total round-lot transactions for account

6,812,000

21,682,000

Feb-

sales

Other

—

Policy dividends

Production

Feb.

purchases

Short sales

Total

9,113,000

*7,125,000

Month of November:

FOR

Total sales

Total sales

15,925,000

*9,884,000

16,459,410

10,227,990

406,530

Other transactions initiated on the floor—

Other

*17,009,000

6,996,000

78,795,000

——

———

_—

values

Sales

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
Feb.
Short sales
Feb.
Other sales
Feb.

Total

141.5

LIFE

—

endowments

Matured

NEW

Feb.
Feb.
Feb.

TRANSACTIONS

101.2

163.8

TO

PAYMENTS

benefits

Total

(SHARES):

sales

ROUND-LOT

INSURANCE—BENEFIT

Month

round-lot sales—

Short sales
Other

*108.8

9.802,000
———-

Durables

Number of shares

Total sales

1 '•-*

5,341,000

16,798,000

manufacturing
goods
goods

Disability payments
Annuity payments

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

*

: 107.0

7,182,000

,

In manufac¬

of employees

MANUFACTURERS' INVENTORIES AND

/1

Round-lot purchases by dealers—

.

12,523,000

*7,853,000
*5,607,000

turing industries—

$67,746,797
'

.

2~24,55(j

Number of shares—Total sales.

OF MEMBERS

*13,460,000

Average=100)—All

1,424,836

Feb'.

short sales

ACCOUNT

114

158.4

„—

(1947-49

POLICYHOLDERS—INSTITUTE
OF
INSURANCE—Month of December:

(customers' purchases)—t

Customers' other sales
Dollar value

FOR

121

7,763,000

manufacturing

Estimated

Death

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Total

122

$555,665,000

All

LIFE

$63,371,893

Other

102

84

107.18

N. Y. STOCK
COMMISSION:

ON

EXCHANGE

Number of shares

Customers'

110

13,240,000

—

goods

Nondurable

Feb. 24

SECURITIES

108

5,477,000

goods

manufacturing

PRICE INDEX—

100

AND

DEALERS

LOT

109

■

r

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

86

110

Employment Indexes (1947-49 Avge. = 100)—
Payroll

of period

DRUG REPORTER

194

Of

workers)

Durable

OH* PAINT AND

197

90

114

DEPT.

S.

SERIES—Month

manufacturing (production

.Feb. 18

at end

—

January:
•

ASSOCIATION:

1

(tons)

88

unadjusted

daily),

EMPLOYMENT AND

3.25

activity

Unfilled orders

monthly),

unadjjusted
Sales (average daily), seasonally adjusted.—
Stocks unadjusted
;——
Stocks, seasonally adjusted—.

Feb. 28

(tons)

Percentage

(average

3.20

—;

INDEX

(tons)

Production

(average

3.18

3.57

3.37

_

PAPERBOARD

Orders received

Sales

Feb.28

—

YORK—1947-49

160—Month of January:

Feb. 28

Group

Group

COMMODITY

RATIONAL

3.28

3.58

Feb. 28

—

3.27

Feb. 28

Public

FEDERAL

DISTRICT,
NEW

FED¬

3.02

3.15

Jan.

SALES—SECOND

BANK OF

=

Sales

3.20

3.07

RESERVE

Average

2.77

Feb. 28

—

STORE

RESERVE

110.52

Feb. 28

corporate

Aaa

Railroad

ERAL

110.15
r

Feb.28

Average

DEPARTMENT

AVERAGES:

DAILY

YIELD

(DEPT. OF COMMERCE):

Spinning spindles in place on Jan. 28-.
Spinning spindles active on Jan. 28——

112.75

110.34

102.80

Group

Railroad

111.44

110.34

Feb.'

*

A

-

111.81

28

Feb. 28

AS

COTTON SPINNING

AVERAGES:

DAILY

lending

institutions

$765,340

$784,085

155,908

152,272

191,404

457,444

499,277

419,806

166,244

170.595

157,762

267,646

285,235

252,358

440,988

443,405

$2,188,302

$2,316,124

"
r>V

Year

OUT¬

RESERVE

Domestic shipments

2,543,000

Feb. 17

ACCEPTANCES

FEDERAL

—

Pi evlou#

OF NEW YORK—As of Jan. 3\:

Imports
Exports

of
_

of quotations,

cases

%

either lor the

are

Month

91.9

2,444,600

*2,433,000

in

or,

45

(1093>

-

,

production and other figures for the

cover

Ago

99.3

'

(bbls.

»

Latest

STANDING

average

••

■

„

Year

INSTITUTE:

and condensate output—dally

oil

Month

Week

$98.4

.Mar. 4

(percent of capacity),
■qulvalent ta—
pteal ingot# and caatingi (art ten#).

■

...

month available. V Dates shown in first column

or

month ended

or

Previous

Week

Indicated ateel operation*

-

*...

following statistical tabulations
week

Latest

,H,.

461,560

$2,266,975

The Commercial and Financial Chronicle
46

.

Thursday, March 1, 1956.

.,

(1094)

it INDICATES

Registration

Securities Now in
Colo..„.
of com¬

ir Abundant Uranium, Inc., Grand Junction,
Feb. 23 (letter of notification) 3,000,000 shares

Feb.

(par one cent). Price—10 cents per snare.
mining exnenses. Office—319 Uranium

stock

mon

/ • Atomic, Electronic &
Inc. (3/19-23)

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo. •

it Aircraft Danger
Feb

wood, N. J.

...

.

Underwriter—Craig-Hallum,

Minneapolis,

Inc.,

Minn.

(3/15)
Feb. 17 filed $14,000,000 of first mortgage bonds due
March 1, 1986. Proceeds—To repay bank loans and for
new
construction. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co. and A C. Allyn & Co., Inc.
(jointly); Blyth*& Co., Inc. and Kidder, Peabody & Co.
(jointly); Lehman Brothers; Equitable Securities Corp.,
Union Securities Corp. and Drexel & Co. (jointly); The
First Boston Corp.; Morgan Stanley & Co.; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EST) on
March 15 at office of Southern Services, Inc., Room 1600,
250 Park Ave., New York 17, N. Y.
Alabama Power Co.

Mo.

it American Alloys Corp., Kansas City,

Underwriter—S. D. Fuller & Co., New York.

purposes.

Birdsboro, Pa.
Dec. 30 filed €2,636 shares of capital stock (par $1) to
be offered for subscription by stockholders of record
Jan. 20, 1956, at the rate of one new share for each two
shares held.
Price—To be supplied by amendment. Pro¬
ceeds—For investment.
Business—A registered invest¬
B. S. F. Co.,

class A commpn stock (par
Price — $10 per share. Proceeds — Together with
funds, to purchase 1,000,000 shares of common
(par $1) of American Frontier Life Insurance Co.

$1).
other
stock

Underwriter—None.

from American

business.

Office

—

stock (par $1).
expand service
Underwriter —

Birmingham, Ala.

Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Arizona

Finance

Co., Phoenix, Ariz.
Sept 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
Public

salesman of the insurance firm.

—

two subsidiaries and for working

capital and further

Proceeds—To repay outstanding advances
Telephone & Telegraph Co., parent, and
treasury for expenditures made for

additions and improvements. Underwriter

property

—

by competitive building. Probable
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.
and Lazard Freres & Co. (jointly); White, Weld & Co.
and Union Securities Corp. (jointly); Morgan Stanley &
determined

be

bidders:

Co.; The First Boston Corp. Bids—To be received up to
11 a.m. (EST) on March 6 at Room 2315, 195 Broadway,
New York, N. Y.
Lizard Mines,

Inc.
filed $900,000 of 8%

Blue
Jan.

17

»•

convertible subordinated

1976.

contracted and for mining expenses.

Office—Salt Lake

Underwriter—None.

inventory of soap through private :canmanufacture. Office—Canal Fulton, Ohio. Under¬

acquire

tract

an

B-Thrifty, Inc., Miami* Fla.
Nov. 23 filed 37,000 shares of class A common stock (par

Price—$38 per share.
retail

tional

Office—5301

stores.

—

Supermarket

Northwest 37th Ave., Miami,. Fla.

concern.

Under¬

writer—None.
Budd Co.,

Philadelphia, Pa. (3/13)

Feb. 20 filed 395,096 shares of common stock (par $5)
to be offered for subscription by common stockholders

Corp.

share.

Proceeds—

(3/5) >

Uranium, Inc.

rate

Office—Montrose, Colo. Underwriters—
New York; and Shaiman & Co.,

purposes.

General Investing Corp.,

Denver, Cold.
•

Ccoper-Jarrett Inc. (3/2)
10 filed (with ICC) 125,000 shares of

Jan.

common stock

Price—To be supplied by amendment.
Pro¬
selling stockholders.
Underwriter—Allen &

(par $1).
ceeds—To

Co., New York.

15 filed

*

/

Cooperative Grange
Exchange, Inc.

League

.'

-

Federation
"

v

82,000,000 of 4% subordinated debentures;

7,500 shares of 4% cumulative preferred stock (par $100)
100,000 shares of common stock.
Price—Of deben¬
tures, 100% of principal amount; o'f preferred, $100 per
share; and of common, $5 per share.
Proceeds—To fi¬
nance construction of a new petroleum terminal at Al¬
and

bany, N. Y., estimated to most $465,000, and to provide
funds to cover redemptions of outstanding common stock,
estimated at not more than $400,000; to repurchase out¬
standing shares of preferred stock and to provide funds
to be advanced to a subsidiary for similar repurchase of
its preferred stock, and for working capital.
Office—
Ithaca, N. Y.
Underwriter—None.

Copper Corp., Phoenix, Ariz.
(letter of notification) 1,200,000 scares of com¬
Price—At par (25 cents per share). Proceeds

27

mon

stock.

—For

incident to mining operations. Address

expenses

O. Box

—P.

175, Phoenix, Ariz.

Underwriter—Keim &

Co., Denver, Colo.
National Car Rental System, Inc.

Couture

Jan. 30 (letter of

par.

825

&

Price — At
Proceeds—To finance/.vehicle purchases. Office—
Fifth Ave., Miami Beach, Fla. Underwriter—Atwill

Co., Inc.,
Crown

Feb.

3

stock
to

notification) $300,000 of-6% convertible

debentures due Feb.. ly 1971.

subordinated

same

city.

_

City Plating Co.,

Pasadena, Calif.

(letter of notification) 14,999 shares of .common
(par $10) of which 2,499 shares are to be offered

officers

and

Price—$20

employees.

working

capital

and

per

other

share.

corporate

Pro¬
pur¬

South Fair Oakes Ave., Pasadena,
Underwriter—Pasadena Corp., Pasadena, Calif.
Office—165

Calif.

Steel Co. of America

Crucible

Proceeds—To open addi¬

Business

per

9 filed

ceeds—For

writer—None.

$25).

>

2,500,000 shares of common stock (par on#
cent)." Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpo¬

/

Canal Fulton, Ohio
Feb. 16 (letter of notification) 1,000 shares of cumulative
preferred stock (par $50); 10,000 shares of class A non¬
voting common stock (par $5) and 1,000 shares of class
B voting common stock (par $5).
Purchasers of each
share of preferred stock will have the option to buy 10
shares of class A stock, and will -be required, to purchase
one share of class B stock.
Price—At par. Proceeds—
* Bocabelli, Inc.,

To

cent).- Price—$1

one

Colohcma

Nov.

Jan.

Price—100% of principal amount.
Proceeds—To make additional cash payment on purchase
debentures due

acquisitions. Office—210 Fifth Ave., New York 10, N. Y.
Underwriter—None.
Atlas

(par

poses.

^ Arrow Graphic Corp. (Del.)
Feb. 20 (letter of notification) 50,000 shares of common
stock (par one cent) and $70,000 of 10-year 8% deben¬
ture bonds.
Price
Of stock, $3.50 per share; and of
bonds, 100% (in units of $10 each). Proceeds—For loans
to

due

the

reimburse

to

City, Utah.

American Insurors' Development Co.
Feb. 10 filed 400,000 shares of common
Price — $2.50 per share. Proceeds — To

9

Syndicate, Ltd...;

(letter of notification) 295,000 shares of common

South State St., Doverr-Del. Underwriter—Mortimer B.
Burnside & Co., Inc., New York.

Underwriter—None.

Telephone Co. of Pennsylvania (3/6)
filed
$35,000,000 of 40-year debentures

Bell
Feb.

March 1, 1996.

ISSUE

purchase inventory and for work¬
ing capital and general; corporate purposes. Office—129

Feb.

Americanfrontier Corp., Memphis, Tenn.
Feb. 15 filed 175,000 shares of

•

„

ment company.

Ventures

REVISED •*5V

To acquire property,

(par $10) and 93,926 shares of 6y2%-convertible
preference stock, (par $7). Price r- Ta be supplied by
amendment.
Proceeds — To purchase 6,735 additional
shares of $100 par common stock of Southeastern Newspapers, Inc<
Underwriter—Johnson, Lane, Space & Go.,/
Inc., Savannah, Ga.

To

shares of 6% cumulative convertible
preferred stock (par $5). Price — To be supplied by
amendment. Proceeds — To retire bank and mortgage
indebtedness of $142,000; to construct additional furnace
facilities; and for working capital and general corporate
Feb. 24 filed 130,000

stock

stock

.

Chemical

-

Dec. 23

Jan.

stock (par $1).
production and development - of.- v arlous modelsof • > the...
Atkins Light. Office —1755 Rand Tower, Minneapolis,

Minn.

4fit*

Augusta Newspapers, Inc., Augusta, Ga.,
13 filed 10,000 shares of 6% cumulative preferred

'

notification) 10,000 shares of common
Price — $11 per, share. Proceeds—For

(letter of

17

«

«

■

Proceeds — For investment. Office—EngieUnderwriter — Lee Higginson Corp., New

York.

Light Corp., Minneapolis,

(3/5)

Minn.

be

share).

per

M.

<

PREVIOUS

ITEMS

•

400,000 shares of capital stock (par $1).
supplied by amendment (expected at $10

filed

17

Price—To

Proceeds—For

Chemical Fund, >

ADDITIONS

SINCE

(3/Bj

Feb. 16 filed

164,117 shares of common stock (par $25)
subscription by common stockholders
of record March 7, 1956, at the rate of one new share for
each 10 shares held; rights to expire on March 21, 1956.
Price—To be supplied by amendment.
Proceeds—For

to be offered for

modernization

and expansion program and general cor¬

Underwriter—The First Boston Corp.,

porate purposes.

Feb. 28 filed 9,890,095

shares of common stock (par $1)
pursuant to an agreement of merger with
this corporation of Airfleets, Inc., Albuquerque Asso¬
ciated Oil Co., RKO Pictures Corp., San Diego Corp.

of record about March

12, 1956 in the ratio of one new
held; rights to subscribe on
March
27.
Price
To
be supplied by
amendment.
Proceeds—For general corporate purposes. Underwriter

New York.

to

share for

and Wasatch

—Blyth & Co., Inc., New York.

Public

be

for

issued

of

Corp. on the following basis: Four shares

Atlas

2.4 shares for one share of
share for each share of Albu¬
querque common; four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego
common; 13 shares for each share of Wasatch cumulative
preferred; and 1.3 shares for each share of Wasatch
common.
The registration statement also covers .1,250,one

Airfleets

common;

common;

000 shares

one

cumulative preferred stock

of 5%

(par $20)

which will become issuable upon and to the extent that
shares

of

common

stock

are

convertible

into

shares

of

preferred stock.
Atlas

10

shares

Co., Las Vegas,

Nev.

at

$50 per share and 8,800 shares are to be offered in
exchange for preferred stock. Proceeds—For payment of
bank loans, and for capital and surplus. Underwriters—
Rex Laub and Max Laub, of Tremonton, Utah, and M. D.
Close Mortgage & Loan Co. and Jack Hemingway Invest¬

Co., of Las Vegas, Nev.

-

-Ar Canadian Delhi Petroleum Ltd. (3/20)
28 filed 698,585 shares of capital stock (par 10
cents) to be offered for subscription by stockholders of
record March 5, 1956, at the rate of one new share for
each

five

owned

shares

held

(with

an

oversubscription priv¬
Proceeds
a wholly-

Price—To be supplied by amendment.
to Canadian Delhi Oil Ltd.,

ilege).
—For

advances

subsidiary, who will use the funds to

repay

bank

.Joans of $1,350,000, and for general corporate purposes.
\jnderwriters—Lehman Brothers and Allen & Co., both
v

Carolina

Telephone & Telegrapli Co.
Feb. 1 filed 66,640 shares of common stock (par $100)
being offered for subscription by common stockholders
of

record

Feb.

Proceeds—To reduce bank loans.

& Co.
to the

rights
stock¬

Underwriter

7

filed $750,000 of participating junior subordi¬
sinking fund 6% debentures due Nov. 1, 1970 (with

detachable

common stock purchase warrants for a total
shares of common stock, par $1 per share).
Price—At 100% (in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111.
Offering—Temporarily postponed.

of

22,500

it Century Controls Corp.

San Francisco

Cleveland

Feb. 21




to

all offices

(3/2)

(letter of notification) 40,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
repayment of loans, equipment and working capital.
Office
Allen Boulevard, Farmingdale, N. Y. Under¬
writer—P. J. Gruber & Co., Inc., New York.
—

Private Wires

bonds

Cumberland

Veterans,
Price—To

Courts
be

and

supplied

—
To Romenpower Electr*
Underwriter—Allen & Co., New York.

Construction Co.

Dec. 30 filed

4%

1983.

Proceeds

amendment.

by

due

Corp., Lexington, Ky.

$900,000 of 12-year 5% sinking fund deben¬

Jan.

tures

due

stock

(par 50 cents)

1968, and 90,000 shares of common
to be offered in units of $500 of
supplied
by amendment (about $550 per unit).
Proceeds —To
build plant to make charcoal brickettes and chemical
byproducts, notably furfural.
Underwriters — William
R.
Staats & Co., Los Angeles, Calif.; Carl M. Loeb,
Rhoades & Co., New York, N. Y., and The Bankers Bond
Co., Louisville, Ky. Offering—Expected momentarily.
15,

debentures and 50 shares of stock. Price—To be

Dennis Run

Corp., Oil City, Pa.
46,000 shares of

writer—Grover O'Neill & Co., New York.

nated

Philadelphia

Works

(3/9-12)
of

(36,162 at competitive bidding to R. S. Dickson
who offered the 14,464 shares represented thereby
public on Feb. 23, at $145 per share; and 16,600
were placed privatelv).
Price—$125 per share to

Century Acceptance Corp.

Chicago

(Republic of)
$2,000,000

filed

Nov. 28

Nov.

Pittsburgh

21

14, 1956 in the ratio of two new shares
held; rights to expire on March 23.
Southern Bell Telephone & Telegraph
Co., owner of
31.67% of the outstanding stock, sold its 52,762 rights

for each five shares

—None.

Boston

Cuba

Nov.

Feb.

holders.

New York

•

—

of New York.

Investment

Jan. 9 filed 20,800 shares of class B common voting stock,
of which 12,000 shares are to be offered for public sale

ment

each

stock
pay

(letter of notification)

(par

bank

common

Price—$6.50 per share. Proceeds—To
loans and debts; and for working capitaL
$1).

Office—40 National Transit Bldg., Oil City, Pa.

Under¬

^ Doctors Oil Corp., Carrollton, Tex.
23 filed 500,000 shares of common stock (par 10
Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating of! and gas properties; and to

Feb.

cents).

pay

off $13,590.80 liabilities. Underwriter — James C.
Oklahoma City, Okla.

McKeever & Associates,
O

Duro-Test Corp.,

North Bergen, N. J.
shares of cumulative preferred stock,
series of 1956 ($25 par-convertible on or prior to March
Feb. 8 filed 42,758

15,

1966)

being

offered

for

subscription

stockholders of record Feb. 27,

by common
1956, at the rate of one

preferred share for each six common shares held; rights
expire on March 14. Price—$5.25 per share. Proceeds
expansion of plant and equipment and of distrib¬
uting and research facilities; and for working capital.
Underwriter—Auchincloss, Parker & Redpath, Washing¬

to

—For

ton, D. C.

/

,

'Number 5512

183

Volume

shares

Eagle Fire Insurance Co.
1 (letter of notification) 72,165 shares of Common
stock
(par $1.25) to be offered for subscripjjjpn by
stockholders on the basis of one share for each five

.

held; rights to be exercisable over a 45-day pe-

*

$3.60 per share.

—

Proceeds

—

Underwriter—None.

Proceeds

—

Empire Petroleum Co., Denver, Colo.
Jan. 18 filed $2,000,000 of series "C" 6% convertible
debentures due 1970 and 1,000,000 shares of common

Boston, Mass.

1,000,000 additional trust

(by amendment)

(par $1), of which $1,500,000 principal amount ot
are
to be offered publicly; the remaining

stock

debentures

For expansion of operations and working
capital. Business — Sale of cameras and photographic
equipment. Office—91-08 Sutphin Blvd., Jamaica, N. Y.

For working

/

Howard Balanced Fund,

it Eaton &
Feb. 27 filed

Proceeds—For in¬

Price—At market.

"

*

it Economart, Inc.
Feb. 17 (letter of notification) 2,989 shares of 7% cumu¬
lative preferred stock. Price—At par ($100'per share).

Office—26 Journal Square, Jersey City 6, N. J.

capital.

(par $1).

vestment.

Feb.

shares

47

'

X

riod/ Price

(1095)

The Commercial and Financial Chronicle

...

$500,000 of debentures and the stock to be reserved for
sale by the company to associates of the officers of the
company and to the company's present security holders.
It is not the intention of the company to sell any of
the common stock at this time.
Price—For debentures,
(in denominations of $1,000 each) and for stock
Proceeds—To retire royalty units and de¬
bentures; for capital expenditures; and for working
capital. Underwriter—For $1,500,000 of the debentures—
H. Carl Aiken Investments, Denver, Colo.
'

at

par

$2 per share.

First Bank Stock

Corp., Minneapolis, Minn.
shares of capital stock (par $10) to
be offered in exchange for the capital stock of the fol¬
lowing banks (except the preferred stock of Duluth Na¬
tional Bank) at the following ratios of exchange;] (a)
IV2 shares for each of the 75,000 shares of capital stock
(par $20)
of Northern Minnesota National Bank of
Duluth (Minn.); (b) 1.2 shares for each of the 25,000
shares of capital stock (par $10) of Batavian National
Bank of LaCrosse (Wis*); (c) nine shares for each of
the 3,000 shares of capital stock (par $100) of First Na¬
tional Bank of Virginia''(Minn.); (d) eight shares for
each of the 3,000 shares of capital stock (par $100) of
The First National Bank'of Hibbing (Minn.); (e) 3.5
shares for each of the 4,000 shares of common stock (par
$50) of Duluth National Bank which will be outstanding

Feb. 6 filed 221,500

March

1

(Thursday)

.'

$3,900,000

(Bids noon CST)

'

11

;Y

■;

V

r

>;

Bonds

Stores, Inc

(Merrill Lynch,

Preferred

,*

(Thursday)

(Bids IE a.m. EST) $14,000,000

Winn-Dixie

$4,000,000

EST)

a.m.

(Bids 11 a.m. EST) $4,000,000

X>;:

'

..

____Bonds

Mississippi Power Co

15

Alabama Power Co.

„

Mississippi Power Co
(Bids

March

:

■

■

Equip. Trust Ctfs.

Chicago & North Western Ry
i

CALENDAR

ISSUE

NEW

$20,000,000 X

Fenner & Beane)

Pierce,

March

.

.Debentures

.

19

(Monday)

,

Com.

Atomic, Electronic & Chemical Fund, Inc
March

2

(Lee

(Friday)

iP.

Gruber & Co.,

J.

Cooper-Jarrett, Inc.

$100,000

Inc.)

(Allen

&

(Eisele

March
Aircraft

5

Louisiana Power & Light
(Bids

Common

Corp

(Craig-Hallum, Inc.) $110,000

California

Robinson

C.)

(J.

(D.

St.

Steel

Louis

(A.

,r

Gas Light

Washington

;

(Offering
The

First

shares

^.

6

Riegel Paper Corp.

& Co.)

$6,000,000

Van Waters & Rogers,

,

■

i

1

•

General

El

:

stockholders—to
Corp.)

(Blyth & Co., Inc.

^

"

be

Common
may be
shares

Manager

Corp.)

56,025

—Preferred

and The First Eoston Corp.) $12,000,000

New England
to

to be

invited) 834,976 share»

(Thursday)

to

Bonds

be invited)

(Blyth & Co., Inc.)

(Thursday)

Preferred

The First Boston Corp.;

&

0

and W. C. Langley

$12,000,000

Co.)

(Friday)

(Bids

(Allen & Co.)

(Offering

Co

to

Bonds

Y-

Lynch,

'-'YYy;

March

12

(Equitable

Securities Corp.

A.

shares

and.^.

&

Westcoast Transmission
(Eastman,

>

Duke

Co., Ltd

(Bids

'

May

(Tuesday)

8

Preferred

El Paso Electric Co

^

(Bids

invited)

be

to

jCiom.

May 10

and
rrrSirJi*

Duke Power

Budd

Common

and

stockholders—to be underwritten
Blyth & Co., Inc.) 395,096 shares

(Shearson,

Hammill &

by

Common

Co

Co.)

(Bids noon EST)

shares

(Wednesday)

60,000

shares

14

be

$20,000,000

invited)

to

~~

£

(Bids

Preferred
to

(Bids to be invited)

to be invited)

be

invited)

202,657 shares

^Notes
about C23,OCO,CC3

^

Bonds
$20,000,000

to mining

operations.

General

Steel

Castings Corp.

(3/7)

company, 67,201 by American Steel Foundries and 30,000 shares by Baldwin Securities Corp.
Price—To be

by

Proceeds—For repayment of
general corporate purposes. Un¬
derwriter—Hornblower & Weeks, New York.
loans

amendment.

and

other

Uranium Corp.

(N. J.), New York
400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
18

filed

Maurice

Schack, Middletown, N. Y.,

-

Dawn

Uranium

Corp., Buena Vista, Colo.

Dec. 27 (letter of notification) 3,000,000 shares of capital
stock (par five cents). Price—10 cents per share. Pro¬
ceeds — For mining expenses.
Underwriter — Bel-Air

Securities Co., Provo, Utah.

30

filed

Co., Carbondale, III.
'
$550,000 of 6% 10-year convertible sub¬

debentures

due April
1, 1966.
Price—100%
principal amount. Proceeds—To repurchase stock of
company held by C. T. Houghten. Underwriter—Edward
D. Jones & Co., St. Louis, Mo.
of

(L. F.) & Sons, Inc., Allentown, Pa.
(letter of notification) 1,279 shares of common
stock (no par) to be offered to present stockholders and
employees. Price—$22 per share. Proceeds—To increase
working capital. Office — Jordan & Union Sts., Allentown, Pa. Underwriter—None.
Jan. 27

it Grolier Society, Inc. (3/8)
(letter cf notification) 12,000 shares of common
stock (par $1), of which 8,000 shares are for account of
company and 4,000 shares for selling stockholders. Price
—$25 per share. Proceeds—For working capital and gen¬
eral corporate purposes.
Underwriters — Dominick &
Dominick, New York; George D. B. Bonbright & Co.,
Feb. 23

October 1

(Monday)

Bonds

Tampa Electric Co

*.

Pacific RR




.

(Wednesday)

stockholders—bids

(Tuesday)

Virginia Electric & Power Co

$7,560,000

Laclede Gas Co

incident

Grammes

Bonds

•

s-WB?"

-March

Missouri

(Bids to

Equip. Trust Ctfs.

Pennsylvania RR.

(Offering

July 11
Florida Power Corp

September 25

."

Common

Higbie Manufacturing Co

expenses

Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6, N. Y.

ordinated

(Thursday)

Common

Co.
(Offering to

*

Good Luck Glove

(Tuesday)

stockholders—to be underwritten by Blyth.,,% Co.,
Dillon, Read & Co. Inc.) 1,600,000 shares

to

Inc.

^

Hills Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com¬
stock (par five cents). Price — 25 cents per share.

Proceeds—For

Jan.

Debs. &

America, N. T. & S. A

Bank of
(Offering

13

mon

$2,000,000

(Offering to stockholders—no underwriter) 367,478

March

%

subordinated

4

Golden

Bonds
$30,000,000

to be invited)

;*—

Dillon & Co.) $20,500,000 debetnures
615,000 shares of stock

Y

convertible

._■■■'•■; "■

Underwriter—None.

Co

Power

Y".
'

•?

Co.) $1,500,000 preferred
150,000 shares of common stock

Lomasney

of

• Gar-Pac, Inc., Carson City, Nev.
Feb. 16 (letter of notification) 1,200,000 shares of com¬
mon stock
(par five cents). Price—25 cents per share.
Proceeds—For mining expenses.
Office—402 N. Carson
St., Carson City, Nev. Underwriter—None.

(Monday)

Bullington-Schas- &,

and

50,000

(D.

^ :.i

Common

Co., Inc.—Preferred & Common

Parker Petroleum

(3/7)

$37,500,000

is President.

(Monday)

Acceptance Corp

.—Debentures

<Bids to be invited) $40,000,000

May 7
Murdoch

filed

General

(Tuesday)

Columbia Gas System, Inc

—.—Common

20

York.

bank

$55,000,000

be invited)

May 1

$2,000,000

to stockholders—to be underwritten by Merrill
Pierce, Fenner & Beane) 298,479 shares
■

Ave., Phoenix, Ariz. Underwriter—None.

debentures due March 1*, 1976, and $10,000,000 of sinking
fund debentures due March 1, 1976. Price—To be sup¬

Jan.

.Bonds

& Electric

Gas

Feb.

supplied

(Monday)

April 30

♦.

(Republic of)

19th

Fruehauf Trailer Co.

Feb. 1 filed 165,000 shares of common stock (par
$1) of
which 67,799 shares are to be sold for account of the

New York Telephone Co

Oklahoma

•

•

$16,500,000

Long Island Lighting Co

..Common

(Blyth & Co., Inc.) 151,050 shares

9

4143 N.

Jan.

Common

Electric System

April 26

%

.

B

(par $25), being offered for sub¬
scription by holders of class A common stock on a 2for-1 basis from Jan. 15 to April 1, 1956. Price—$36.50
per share.
Proceeds—For capital and surplus. Office—

Gas

(Wednesday)

stockholders—Bias

(Bids

Common

Co., Phoenix, Ariz.
notification) 2,000 shares of class

stock

common

Stone

(Monday)

Portland Gas & Coke Co

400,000 shares

Assurance

(letter of

plied by amendment. Proceeds—For plant expansion and
working capital. Underwriter—Lehman Brothers, New

Co
Securities

April 19

by";'

underwritten

Ryder System, Inc

Cuba

X

(Thursday)

April 18
•

-

164,117 shares

Kaufmann & Co.)

March

Y

_^.L___Bonds

$20,000,000

stockholders—Dealer

Webster

Common

Rokeach (I.) & Sons, Inc
W.

Common

EST)

a.m.

April 16

Grolier Society, Inc..—.
Common
~
(Dominick & Dominick; George D. B
Bonbright & Co.rcBall,
Eurge 3c Kraus; and Foster & Marshall) $330 OOQ^---^
(Jay

(Wednesday)

(Thursday)

Crucible Steel Co. of America
The First Boston

'

$15,000,000

City Power & Light Co.

(Offering

to

to

&

Bonds
•

2

voting

y-ffgyjjj*.-

$30,000,000

EST)

a.m.

March 8

(Offering

11

Electric

Paso

(Offering

.........Common

Co

Houston Lighting & Power

Dec.

!

—Bonds

EST)

a.m.

April 5

Kansas

165,000 shares

Frontier

Co. .__-Bonds

$12,000,000

Co.—Y_—*„£

(Bids

Debentures

Castings Corp

11:30

EST)

a.m.

(Wednesday)

(Hornblower & Weeks)

(Bids

(Tuesday)

Light Co

Duquesne Light

(Lehman Brothers) $47,500,000

Steel

$16,000,000

"

>■

Fruehauf Trailer Co._.__
-

11

International, Inc.

50,000 shares of five selling stockholders. Price—$3 per
ihare. Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.

(Thursday)

Bonds

11:30

Illinois

"

■.

March 7

v

.-v-

63,560 shares

(Blyth & Co., Inc.)

69,670 shares

be invited)

Pitt Packaging

June 30 filed 300,000 shares of common stock (par 10$),
of which 250,000 shares of for account of company and

by

(Offering to stockholders—to be underwritten by Union
Securities Corp.) approx. $5,000,000

-

..

Common*

Inc.

.1

,

(Bids

Central

'

to stockholders—underwritten by Morgan',
Stanley & Co.) 194,155 shares

(Offering

underwritten

Florida Power & Light Co

'

Common

Riegel.Paper Corp

to

April 4

'^

*

be

Co

(Bids

j

.

Debentures

...

...

Co.)

April 3

450,000 sh&resP

$600,000

investment.

Fort

Columbus & Southern Ohio Electric

__Commcn

Deetjen

Stanley & Co.)

(Morgan

Power

ii'T

Denens.
'
V' 7
Common

Corp

(Emanuel,

Georgia

7"

Pacific Coast Aggregates, Inc.—
(Blyth & Co., Inc. and Schwabacher & Co.)

Hutton &

E.

(Bids

.»•&

.

Aircraft

t

_

Co.)

(Tuesday)

Telephone Co. of Pennsylvania
Y'v
(Bids 11 a.m. EST) $35,000,000

Piasecki

-A- Florida Mutual Fund, Inc., St. Petersburg, Fla.
(by amendment) 1,000,000 additional shares
of common stock (par $1). Price—At market. Proceeds

Common

March 29

Common

Co

148,517 shares

,

Bell

280,000

Boston

March

$25,000,000

stockholders—to

to

W.

Common

Inc

Worthington, Minn. The exchange period under each of
the proposals will expire on March 9.
Statement ex¬
pected to become effective on Feb. 27.

(Thursday)

Rotary Electric Steel Co
(Offering

stock dividend has been distrib¬

Feb. 27 filed

Bonds

Co

invited)

be

common

Bonds

:

—

100%

a

uted; and (f) 13 shares for each of the 1,000 shares of
capital stock (par $100) of Worthington National Bank.

—For

.

stocknolders—to be underwritten
Corp. and Johnston, Lemon &

to

to

:

EST) $10,000,000

a.m.

March 22

$300,000

Sons)

&

(Bids

$7,000,000

Debs. <SrCoio.

Class A

Casting,

11

—Preferred

Co
EST)

a.m.

Pacific Gas & Electric

$2,020,000

Co.)

Fisher Co.)

Edwards

G.

(Bids

•

,

-

Co
B.

-

•

.

$1,000,000

Nevada Natural Gas Pipe Line Co.__
(First

*

-

Common

Investing Corp.)

11:30

Narragansett Electric Co

Y'YvX;-

Colohoma Uranium, Inc
(General

after

Crmmon

(Offering to stockholders—to be underwritten by Lehman
Brothers and Allen & Co.) 698,585 shares
'-/vY

-

(Monday)

Light

Danger

about $48,000

Stout & Co.)

Libaire,

King,

(Tuesday)

Canadian Delhi Petroleum, Ltd..

...Class A Common

Pinellas Industries, Inc

Common

$2,250,000

Co.)

March 20

shares

125,000

Co.)

;

X-

400,000 shares

Corp.)

Reiter

J.

(M.

'

.

Common

=

—

Higginson

Western Greyhound Racing, Inc._

Common

Century Controls Corp—
X

X

-

(Bids to be invited) $10,000,000

October 2
Columbia Gas

(Tuesday)

Debentures

System, Inc.—

(Bids to be invited)

$30,000,000

Continued

on

page

48

43

The Commercial and Financial Chronicle

(1096)

Continued from page

N. Y.; Ball, Burge & Kraus,
and Foster & Marshall, Seattle, Wash.

Cleveland, O.;

International

Inc., Jersey City, N. J.
amendment) 2,000,000 additional s.iares
capital stock (par one cent). Price—At market. Pro¬

if Group Securities,

investment.

Guaranty Income Life Insurance

Co.

New Orleans, La.
filed $600,0(30 of 10-year 5% debentures due-

30

Price-^00% of principal amount. Pro¬
costs. Underwriter—None.

1966.

1,

$10 per share. Pro-

Gas Corp.,

Gulf Natural
Pec.

Oct.

Address—P. O. Box 2231,
Underwriter—None.

Baton Rouge, La.

Jan.

Price

N. Y.

Statement effective Jan.

Hard Rock Mining

10.

(letter of notification) 1,000,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
for working capital. ^Office — 377 McKee Place, Pitts¬
stock

Underwriter—Graham & Co., Pittsburgh, Pa.

burgh, Pa.

if Hawaiian Telephone Co., Honolulu, Hawaii
Feb. 27 filed 275,000 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record March 1, 1956, at the rate of one new share
for each five shares held.
Price
To be supplied by
amendment.
Proceeds—For payment of bank loans and
construction program.
Underwriter—None.
—

Helio Aircraft Corp.,

Canton, Mass.
150,000 shares of common stock (par $1).
Price—To tae supplied by amendment. Proceeds—For im¬

Dec. 29 filed

provements, research, development and working capital.
Office—Metropolitan Airport, Canton (Norwood P. O.),
Mass.
Underwriter—To be supplied by amendment.

Viigbie Manufacturing Co.

(3/13)

Feb. 16 filed 60,000 shares of common stock

(par $1), of
which 30,000 are to be sold for account of the company
and 30,000 shares for account of a selling stockholder.
Price—To be supplied by amendment.
Proceeds—For
plant expansion and machinery and equipment. Business
Manufactures

and

sells

steel

Office—Rochester, Mich.
mill &

tubing and

fishing reels..

Underwriter—Shearson, Ham-

Co., New York.

Hometrus^ Corp., Inc., Montgomery, Ala.
Jan.

5

filed

125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein.
Under¬
writer—None.
Household Gas

Jan. 6

Service, Inc.
(letter of notification) 920 shares of 6% cumula¬

tive preferred stock.

Price—At par ($25 per share) and

accrued dividends.

Proceeds—To repay indebtedness and
for working capital.
Office — Clinton, N. Y.
Under¬
writer—Mohawk Valley Investing Co., Utica, N. Y.
Houston Lighting & Power Co.
Feb. 9 filed

Proceeds

(3/7).

To

repay

Inc.; Smith, Barney & Co., Lazard Freres & Co. and
Blyth & Co., Inc. (jointly); Lehman Brothers, Union
Securities Corp. and Salomon Bros. & Hutzler
(jointly);
Kidder, Peabody & Co.; Equitable Securities Corp.
Bids—To be received up to 11:30
at Two Rector
St., New

a.m.

(EST)

on

March 7

York, N. Y.

if Idaho-Alta Metals Corp.
February (letter of notification)

—

Ideal-Aerosmith, Inc., Hawthorne, Calif.

flock

(letter of notification) 150.000 shares of capital
(par $1). Price —$2 per share. Proceeds —For

equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel
B.
Franklin & Co., Los
Angeles, Calif.
Insulated

Circuits, Inc., Belleville, N. J.

Nov. 10 filed 100,000 shares of 6% convertible
preferred
stock (cumulative if and to the extent
earned). Price—
At par ($5 per share). Proceeds—For

general corporate

purposes.

Underwriter

—

Alexander Watt

Investment Co.,

&

Co..

Inc.,

New York.

on

March 20.

offered

65,500 shares of
in

stock

common

exchange for outstanding

(par $5) to-

Marine Midland
held

common

common

as

stock

common

shares of

for each share of First National

of record Feb. 24,

1956.

if Massachusetts Hospital Life Insurance Co.
Feb. 28 filed (by amendment) 22,000 additional shares
beneficial

interest

in

the

Massachusetts

Boston, Mass.; and 100 trust shares.

Lbe

Fund,

Price—At market.

Proceeds—For investment.

Jan. 18 (letter of notification) 15,000 shares of 5% cumu¬
lative first preferred stock.
Price — At par ($20 per

Underwriter

Aviv, Israel.

—

Rassco Israel Corp.,

~

Jurassic

Proceeds—For expenses incident to mining
326 West Montezuma St., Cortez,

share.

Colo.

Office

—

Underwriter

—

Bay Securities Corp., New York,

New York.

New York.

Kassel Base Metals,
Feb.

/'v.'' -"'

-

,

|

Inc.

Colorado.

if Laclede Gas Co., St. Louis, Mo. (3/14)
21 filed 202,657 shares
of convertible preferred
stock, series A (par $25) to be offered for subscription
by common stockholders of record March 16, 1956, at
the rate of one preferred share for each 15 shares of
common stock held; rights to expire about April 3; Plrice
—At par ($25 per share). Proceeds — To reduce bank
loans.
Underwriter—To be determined by competitive
bidding. Probable bidders may include Lehman Bro¬
thers; White, Weld & Co.; Stone & Webster Securities
Corp.; Blair & Co. Incorporated and Drexel & Co.
(jointly). Bids—Expected to be received about March 14.
Feb.

if Lester Engineering. Co., Cleveland* Ohio
Feb. 24 (letter of notification) 37,500 shares of common
stock (par $1) to be offered for subscription by common
stockholders of record March 1, 1956 on the basis of one
share for each

portion,
ployees.

shares held. Of the unsubscribed

to 7,500 shares are to be offered to em¬
Price—$8 per share. Proceeds — For general

up

corporate

purposes.

•

Office—2711

Church Ave.,

Cleve¬

Underwriter—None.

Life Underwriters Insurance Co.,

Sept. 26 filed

100,000 shares

of

Shreveport, La.
stock

(par 25
cents) being offered for subscription by stockholders
of record July 21, 1955 on the basis of one new share
for each four shares held; rights to expire 45 days from
common

the commencement of the

offering (Jan. 31, 1956), after
be offered to public. Price—■
$8.75 per share to stockholders; $10 per share to public.
Proceeds
For expansion and working capital. Under¬
writer—Frank Keith & Co., Shreveport, La.

which

unsold

shares

will

—

Lisbon Uranium

Corp.

Dec. 26 filed 1,306,209 shares of common stock

(par 15c)
being offered for subscription by common stockholders
of record Feb. 20, 1956, at the rate of three new shares
for each ten shares held (with an additional subscription
privilege); rights to expire on March 8. Price—$3.75 per
share.
Proceeds
To repay advances by Atlas Corp.
of* approximately $4,039,000, which has or will be used
to acquire option to purchase the so-called Barrett claims
and pay balance of purchase price; for exploration and
drilling expenses, and for other corporate purposes.
Office—405 South Main St., Salt Lake City, Utah. Under¬
writer—None, but Wasatch Corp., a subsidiary of Atlas
Corp., will purchase any unsubscribed shares. Statement
effective Feb.

20.

L-O-F Glass Fibers Co., Toledo, O.
Feb. 10 filed 251,405 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record Feb. 29, 1956, at the rate of one new share for
each 10 shares held. Price—$12 per share; rights to ex¬

Underwriter—None.

\

mar¬
;

Proceeds

Montgomery

St.,

For working capital. Office

—

—

333

San

Guardian Securities

Francisco, Calif. UnderwriterCorp.,. San Francisco, Calif.
;s

Midland General

Hospital, Inc., Bronx, N. Y.
24,120- shares of common stock (no par)
and 30,000 shares of $6 dividend preferred stock
(no
par). The company does not intend presently to sell
Jan.

12

filed

stock than is required to

raise, at most, $2,700,00(X
$100 per share. Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.
Price

—

Mineral

Projects-Venture C, Ltd., Madison, N. J,

Feb. 7 filed $4,000,000 of participations in capital as lim¬
ited partnership interests in the venture to be sold in

minimum units of $25,000.

Proceeds—For expenses in¬

cidental to oil exploration program.
Underwriter—Min¬
eral Projects Co., Ltd., on "best efforts basis."

t

6

(letter of notification) 120,000 shares of capital
stock (par 10 cents), of which 20,000 shares are being
sold by Burt Hamilton Co. and 100,000 shares by Kassel
company.
Price—$2.25 per share.
Proceeds—For min¬
ing expenses. Office—1019 Adolnhus Tower Bldg., Dal¬
las, Texas.
Underwriter—First Western Corp., Denver,

new

'

Mercantile Acceptance Corp. of California, Calif.

more

if Kara Commodity Fund, Inc.
Feb. 24 (letter of notification) 275,988 shares of common
stock (par 10 cents).
Price — 100/92 of the bid price
(about $1,067 per share). Proceeds—For investment. Of¬
fice—521
Fifth Ave., New York, N. Y.
Business—An
open-end mutual fund dealing in commodities and com¬
modity futures. Underwriter—Bruns, Nordeman & Co.,

Price—At

-

share).

Minerals, Inc., Cortez, Colo.

(letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
Aug. 26

tal.




(EST)

_

—Tel

New York.

ness—Manufacture of Educational Atomic Kits.

Office—

Corp.

Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
Issue Bonds only. Offlet

pire on or about March 26, 1956. Proceeds—For capital
improvements; additional equipment, and working capi¬

—

received up to 11.30 a.m.

Midland

if Massachusetts Investors Trust, Boston, Mass.
27 filed (b,y amendment) 3,691,491,462 additional

★ International Atomic Devices Corp.
Feb. 21 (letter of
notification) 59,900 shares of common
stock (par $2). Price
$5 per share. Proceeds
For
working capital and general corporate purposes. Busi¬
—

be

Marine

Feb.

Ltd.

—

Dec. 16

Bids—To

in State of Israel Independence

•

120,000 shares of com¬
mon stock (par 10
cents). Price—$1.50 per share. Pro¬
ceeds—For exploration and development
expenses. Un¬
derwriter
Fenner Corp.
(formerly Fenner-Streitman
& Co.), New York.

Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); W. C. Langley & Co. and The First Boston
Corp. (jointly); Lehman Brothers; Blyth & Co., Inc.

shares of beneficial interest in the Trust.
ket. Proceeds—For investment.

land, Ohio.

bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders:
Halsey, Stuart & Co.'
—

V

Israel-Rassco

"Isras"

,

$30,000,000 of first mortgage bonds due 1986.

(3/20)

Co.

70,000 shares of cumulative preferred stock
Proceeds—For property additions and im¬
provements.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Kidder, Peabody &
(par $100).

of

For investment.

activities.

Feb, 20

mon

369-375 DeKalb Ave., Brooklyn 5;
Co., New York.

—

(by amendment) 1,000,000 additional shares
of capital stock (par $1). Price—At market. Proceeds—

per

Co., Pittsburgh, Pa.

Office

Minn.

More than the required 128,000 shares

Underwriter—None.

Louisiana Power & Light
Feb. 9 filed

Underwriter—Kamen &

Feb. 23 filed

Paper Co.,

(80%
of outstanding Watervliet stock) have been deposited for:
exchange. The offer has been extended until March 19.

—Dunne & Co., New York. Statement effective Feb. 29.

Feb. 6 filed

if Investors Selective Fund, Inc., Minneapolis,

Dec. 20 filed 166,400

vliet stock.

filed 525,000 shares of common stock (par 10
Price—$1.50 per share. Proceeds—For construc¬
tion of arena. Office—Commack, L. I., N. Y. Underwriter

of The First Bank of Herkimer at rate of

-

Erie, Pa.
shares of common stock (par $2.50)
being offered in exchange for shares of capital stock
cf Watervliet Paper Co. in the ratio of 26 shares oi
Hammermill common stock for each 25 shares of WaterHammermill

25

cents).

be

ment, etc.

1,534,446 shares of capital

extended to April 2.

Industries Corp.

150,000 shares of common;
(par 10) cents). Price—$2 per share. Proceed*—
For advances to Arliss Co., Inc. for purchase of equip¬

stock (par $25)
being offered in exchange for shares of common stock
cf Warren Petroleum Corp. in the ratio of four shares of
Gulf for each five shares of Warren. If, prior to the
expiration of the offer, less than 1,753,133 Warren shares
(90%) but at least 1,558,340 shares (80%) are deposited
thereunder, Gulf may at its option accept all shares of
Warren so deposited. Offer will expire on March 2,
unless

Plastic

International

Long Island Arena, Inc.

Jan.

Oct. 12 (letter of notification)

Pittsburgh, Pa.

Gulf Oil Corp.,

4 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos Mineros
Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.

•

Thursday, March 1, 1956

.

stock

ceeds—For construction

Jan. 10 filed

Basic

International Metals Corp.

(letter of notification) 24,000 shares of capital
block (par $5) to be offered first to stockholders, then

B«c. 30

policyholders and the public.
ceeds—For working capital.

St., Trenton 8, N. J. UnderwriterCo., Jamesburg, N. J.

Metals, Inc.
Jan. 27 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.

Feb. 27 filed (by

ceeds—For

Willow

Louis R. Dreyling &

Rochester,

of

North

18

47

,.

t

Mississippi Power Co.

(3/1)

Feb. 3 filed $4,000,000 of first mortgage bonds due March

1, 1986 and 40,000 shares of cumulative preferred stock
(par $100). Proceeds — Toward the construction or ac¬
quisition of permanent improvements, extensions and
additions to the company's utility plant.

Underwriters—

To be determined by competitive bidding. Probable bid¬
ders: (1) For bonds—Halsey, Stuart & Co.

Inc.; Merrill
Lynch, Pierce, Fenner & Beane; Lehman Brothers; Kid¬
der, Peabody & Co.; Union Securities Corp., Equitable
Securities Corp. and Drexel & Co. (jointly).
(2) For
preferred stock—W. C. Langley & Co.; Glore, Forgan &
Co. and Sterne, Agee & Leach (jointly); The First Bos¬
ton Corp.; Blyth & Co., Inc.; Kidder, Peabody & Co.
^nd
White, Weld & Co. (jointly). Bids—To be received up
to 11 a.m. (EST) on March 1 at office of Southern Serv¬
ices, Inc., Room 1600, 250 Park Ave., New York 17, N. Y.
Mormon Trail

Feb. 9
stock

Mining Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro¬

ceeds—For mining expenses. Office—223 Phillips Petrol¬
eum

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
•

Murdock Acceptance Corp.

Feb. 15 filed

(3/12-16)
50,000 shares of capital stock (par $5). Price

—To be supplied by amendment.

Proceeds—For work¬

ing capital and general corporate purposes. Underwriters
—-Equitable Securities Corp., Nashville,
Tenn., and Bullington-Schas & Co., Memphis, Tenn.

if Narragansett Electric Co. (3/20) •
Feb. 21 filed $10,000,000 of first mortgage
bonds, series
E, due March 1, 1986. Proceeds — To repay bank loans
and to reimburse treasury for property additions. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; The First Bos¬
ton

Corp.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler,
White, Weld & Co.; Blyth & Co. Inc. and Harriman Ripley
& Co. Inc.
(jointly); Union Securities Corp.; Kidder,
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Lehman Brothers and Goldman, Sachs & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST)

March

on

Providence

20

at

Room

804,

15

Westminster

National

Lithium

Corp., Denver, Colo.

Dec. 27 (letter of notification) 300,000 shares of
stock

(par

St.,

1, R. I.

common

cent).

Price—$1 per share. Proceeds—
mining expenses. Office — 556 Denver Club Bldg.,
Denver, Colo. Underwriter
Investment Service Co.,
same city.
one

For

—

National Old Line
Nov.

15

(par $2)
(par $2).
ceeds

filed

50,000

Insurance Co.

shares

of

class

A

common

stock

and^ 50,000 shares of class B
Price—To be supplied

common stock
by amendment. Pro¬

To selling stockholders.
Office
Little Rock,
Underwriter—Equitable Securities Corp.. Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
—

—

Ark.

postponed.
•

Nevada Natural Gas Pipe Line Co.
(3/5-8)
30 filed $1,000,000 of 5V2% subordinated

Jan.

sinking
160,000 shares
(par $1) to be offered in units of $25
of debentures and four shares of stock.
Price—$50.50 per
fund
of

debentures

common

stock

due

March

1, 1976, and

Volume 183

unit.

Number 5512

..

The Commercial and Financial Chronicle

.

Proceeds—To repay bank loans and for new con¬
Office—Las Vegas, Nev.
Underwriter—First

struction.

California

8,326 shares of
stock (par $25) to be offered for subscription by
(letter of notification)

stockholders

basis.

l-for-9

a

Price

35 Court St., New

common
common

—

Britain, Conn. Underwriter—None.

Jackson, Miss.
Jan. 13 filed 2,298,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For acquisition of prop¬
and

general

To be named

Underwriter—

purposes.

by amendment.

Nicholson

Jan.

corporate

(W. -H.)

-

& Co., Wilkes-Barre, Pa.

filed

16

20,000 shares of common stock (par $5).1
Price—$25 per share. Proceeds — For working capital.
Underwriter—None.

A. E. Nicholson Jr. of

Kingston, Pa.

is President.

North

Jan.

Pittsburgh Telephone Co., Gibsonia, Pa.
(letter of notification) 4,000 shares of common

6

stock

be

to

offered

for

subscription

by

to

24

filed

70,290 shares of common stock (par $10)
offered for subscription by stockholders at the

be

rate of

new

one

share for each five shares held. Price—

To be

supplied by amendment. Proceeds—To reimburse
the company's treasury for additions and betterments
made to property. Underwriters—Hayden, Miller &
Co.;
McDonald & Co.; Merrill, Turben & Co.; and Lawrence
Cook & Co.; all of Cleveland, O.
•

Northern

Power Co.
(Minn.)
670,920 shares of common stock (par $5)
being offered for subscription by common stockholders

Jan. 20

of

March

record

each

States

filed

shares

20

Price—$16.75

1

the

at

held;

rate

rights

of

to

on

share

for

March

new

one

expire

20.

share.

Proceeds—To repay bank loans
Underwriter — Lehman
Brothers and Riter & Co. (jointly) who were awarded

and

per

for construction

the issue

on

it Norvell-Wilder Supply Co., Houston, Tex.
23 (letter of notification)
2,500 shares of capital
stock (par $100). Price—$120 per share.
Proceeds—To
be added to working capital. Office—c/o F. S.
Carothers,
President, Box 2178, Houston, Tex. Underwriter—None.

and

Riddle

the

;

>

Ave., North, St. Petersburg, Fla. Underwriter
Libaire, Stout & Co., New York.

share.

•

Feb.
to

15 filed

be

Electric Co.

298,479 shares of

offered

of record
10

Gas &

due April 1, 1966, and 30,000
common stock
(par 10 cents) to be offered in
$100 debenture and 10 shares of stock. Price—

for

common

subscription by

March 8 at

rate

a

of

stock

common

one

(par $10)

stockholders

share

new

for each

shares held;

rights to expire on March 27.
Unsub¬
scribed shares (up to 15,000) may be offered to employ¬
ees.
Price—To be supplied by amendment.
Proceeds—
For construction program.

Underwriter—Merrill Lynch,
Pierce, Fenner & Beane, New York.

it Old Colony Finance Corp., Mt. Rainier, Md.
Feb. 17 (letter of notification) 40 shares of cumulative
preferred stock to be offered at

($25

share) and
$25,800 of 6% subordinated debentures due July 1, 1971
to be offered in exchange, par for
par, for outstanding
6% debentures due Oct. 1, 1957; also 11,580 shares of
common stock (par $1) to be issued at
$2 per share upon
exercise

of

warrants

to

be

par

attached

to

per

debentures

due

July 1. 1971 entitling holders thereof to purchase a total
of 9,000 shares, and upon exercise of warrants attached

Corp., Washington,

in

units

D.

of

share

Jan.

23

filed

•

Price

1, 1957 entitling holders to pur¬
2,580 shares. Proceeds—To reduce notes

payable and to increase working capital. Office
Rhode Island

—

3219

Ave., Mt. Rainier, Md. Underwriter—None.

it Oneita Knitting Mills
21 (letter of notification)

Feb.

debentures due March 1, 1976.
amount.
Proceeds—To redeem

$296,600 of 20-year 6%
Price—100% of principal

preferred stock and for
working capital. Office—350 Fifth Ave., New York, N. Y.

Underwriter—N one.

•

cents).

Aggregates, Inc. (3/6)
450,000 shares of common stock (par $5).
be supplied by amendment.
Proceeds — To¬

10 filed

Price

—

To

gether with other funds, to purchase assets of Santa Cruz
Portland Cement Co.; for capital
improvements, and
working capital. Underwriters — Blyth & Co., Inc., and
Schwabacher &

Co., both of San Francisco, Calif.

of

pany.

of short

term

bank

loans

obtained

for temporary
utility properties.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.
Inc.; The First Boston Corp. Bids—Tentatively expected

financing

of

additions

to be received
•

on

to

company's

March 20.

Parker Petroleum

preferred stock (par $10) and 150,000 shares of common
stock (par 10 cents). Price—To be supplied
by amend¬
ment.
Proceeds
To repay loans, etc.; for exploration
and development costs and for working
capital. Business
—

—A

crude

oil

and

natural

Office—Ponca
ney

City, Okla.
& Co., New York.

gas
producing company.
Underwriter—D. A. Lomas¬

★ Peabody Coal Co., Chicago, III.
27 filed'210,823
shares of common

Feb.

policyholders in the com¬
Proceeds—For general cor¬

Reynolds

Minerals

Corp., Denver, Colo.
Jan. 30 (letter of notification) 40,000 shares of common
stock (par $1). Price — $6 per share. Proceeds — For
expenses.

2,

Colo.

Office—822 First National Bank Bldg.,

Underwriter—Luckhurst

&

Co.,

Inc.,

New York.

Reynolds Mining & Development Corp.
22 filed
1,500,000 shares of common stock (par
cent). Price—50 cents per share. Proceeds—Fc-r
working capital and mining expenses. Office — Moabj
Nov.
one

Utah.

Underwriter

—

The Matthew

Corp., Washington,

be

ital

540,000 shares of

common

stock

(par $5)

Rhinelander
offer

will

common

Paper
be

on

a

share-for-share

effective

if

90%

of

basis.
Rhine-

stock is deposited for

effective

declared

Co.

declared

if

a

exchange; and may
but not less
deposited. Dealer-Man¬

lesser

amount,

.

>

San

'

-...

i.

.

•.

..

....

«_...

..

Juan

Racing Association, lnc.k Puerto Rlew,
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per share, of 200,000 shares for subscription by
itockholders of record April 30, 1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to fca
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
derwriter—None.
Hyman N. Glickstein, of New Yoik
City, is Vice-President.
Saratoga Plastics, Inc.
20 (letter of notification)

100,000 shares of com¬

Jan.

stock

(par $1). Price—$1.75 per share. Proceeds—
strengthen the over-all financial structure of the

mon

To

Office—North Walpole, N. H. UnderwriterConcord, N. H.

First New Hampshire Corp.,

Sayre

&

Fisher

Brick Co.

Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds — For

prepayment of outstanding 5lk% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer — Barrett Herrick & Co., Inc., New York City.
Seaboard Drug Co., Inc.

(letter of notification) 300,000 shares of Class A
(par 10 cents). Price—$1 per share. Proceeds—
purchase of Mericin, Calona and Avatrol; market
testing of Homatrone; and for working capital. Office—
21 West 45th St., New York, N. Y. Underwriter—FosterMann, Inc., New York City.

Jan. 19
stock
For

D. C.

Feb.
to

Sons, St.

.

filed

company.

tees.

it Richolode Uranium Corp.
stock

ior..J>JC. .record.




unit.

Underwriter—None; to be offered by
Leo Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬

Denver

(3/12)

per

&

Edwards

of said shares, are so
agers—White, Weld & Co., New York, and A. G. Becker
& Co., Inc.
*■#»•.».«
i

to become active

porate purposes.

mining

Co., Inc.

Feb. 20 filed 150,000 shares of 6% cumulative convertible

are

Price—$2

G.

than 80%

'

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
procurement agreement to be offered to certain mem¬
bers of the general public who are acceptable applicants
and who

(3/20)
$25,000,000 of first and refunding mortgage
bonds, series Z, due Dec. 1, 1988. Proceeds—For retire¬

ment

be

Hacienda, Inc., Inglewood, Calif.

Bayley Investment Co.

21

lander

Price—
Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilitiei
and for general corporate purposes. Underwriter—Wil¬

Feb. 28 filed

(3/5-8)

Inc.

Underwriter—A.

loans.

Feb.

19 filed 4,000,000 shares of common stock.

it Pacific Gas & Electric Co.

Casting,

to be offered in exchange for outstanding common stock

$500,000 of 6% sinking fund first mortgage
Price—100% of principal amount.
Pro¬
ceeds—To purchase 36,128 shares of capital stock at a
price of $10 per share from stockholders retiring from
the company, and for working capital.
Business—Manu¬
factures and sells at wholesale bread products.
Under¬
writer—M. H. Bishop & Co., Minneapolis, Minn.

&

Steel

280,000 shares of common stock (par five
Price —$6.10 per share. Proceeds — To reduce

it St. Regis Paper Co.

The

son

Under¬

filed

Louis, Mo.

At par ($1 per share).

Pacific Coast

Feb.

Inc., Miami, Fla. (3/8)
151,050 shares of common stock (par $5).
supplied by amendment. Proceeds—To

be

Louis

St.

bank

Ltd.

Regan Bros. Co., Minneapolis, Minn.

Reno

To

—

Jan. 25

amendment.

Dec.

Building, Denver, Colo.

help finance purchase of five other truck lines.

Feb. 17 filed

total of

cor¬

writer—Blyth & Co., Inc., New York.

bonds due 1976.

a

general

Ryder System,

Jan. 30 filed

of partnership interests to be
offered in minimum amounts of $25,000. Proceeds—To
acquire leases for drilling for oil and gas and for devel¬
opment costs. Underwriter — Name to be supplied by

to debentures due Oct.

Proceeds—For

Underwriter—W. E. Hutton & Co., Cin¬

Underwriter—Columbia Securities Co., Denver, Colo.

$1,000,000

chase

about March 21.

or

tion. Office—534 Commonwealth

of

Minerals, Inc., Reno, Nev.
Feb. 14 (letter of notification) 500,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
For mining expenses.
Office—573 Mill St., Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.
Co.,

on

Royal Oil & Gas Co., Denver, Colo.
(letter of notification) 5,978,000 shares of com¬
stock (par one cent). Price—Five cents per share.
Proceeds—For expenses incident to oil and gas produc¬

and P.

Oil

(3/22)

filed

mon

C.

one

& Sons, Inc., Flushing, N. Y. (3/8);
400,000 shares of common stock (par $1).

Jan. 20

Chicago, 111. Statement to be withdrawn.

Redlands

Ave., Detroit, Mich.

cinnati, O.

preferred stock and one-half share of common stock.
Price—$6.75 per unit. Proceeds—For general corporate
purposes. Underwriter — Straus. Blosser & McDowell,
R.

plant and for working

new

Elliott

$3

16

fixed

preferred stock (par $5) and 55,500 shares of 10-cent par
offered

a

Mt.

(I.)

filed

porate purposes.

111,000 shares of 44-cent cumulative prior
be

654

—

69,670 shares of common stock (par $10)
subscription by stockholders of record
March .21, 1956 on the basis of one new share for each 10
shares held; rights to expire on April 4. Price—To be

—

to

(J. C.)

Rotary Electric Steel Co.

Proceeds—For machinery and equipment.
St., New York 11, N. Y. Under¬
Boland & Co., Inc., New York.

stock

for

Office

—

Feb.

For mining expenses. Office — 1306 West
Alameda, Denver, Colo. Underwriter—None.

common

'

to be offered for

R.

Loan

"

•

Underwriter—Jay W. Kaufmann & Co., New York.

debentures,

Prudential

Morgan

—

•

and other general corporate purposes. Business—Manu¬
facturer of kosher food products, soaps and cleansers.

Office—555 West 23rd

•

'

-

per share. Proceeds — To eliminate bor¬
rowings from commercial factors and enable the com¬
pany to finance its own accounts; for working capital;

(J. E.) Manufacturing Corp.
(letter of notification) $294,000 of 10-year 6%

Nov. 22 filed

(3/9)

Proceeds—

Underwriter

shares

Rokeach

Price

Plastics

Proceeds

Oklahoma

equipment.

Proceeds—To build

Jan. 27

the

ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon &

Co., New York.

,

Underwriter—D. B. Fisher Co., Detroit, Mich.

it Platte Uranium, Inc., Denver, Colo.
Feb. 23 (letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 30 cents per share.

& Oil Corp.,

•

(letter of notification)

capital.

plan will purchase during the 13 months period follow¬
ing the effective days of the registration statement.

writer—John

/

Co., Detroit, Mich. (3/5)
1
150,000 shares of cumu¬
lative convertible class A stock (par $1). Price—$2 per

Co.

maximum number of shares which contributions to

$102 per unit.

five

it Robinson

$1,500,000 of participations in an Invest¬
Salaried Employees, together with 75,000
shares of common stock (par $1), being the estimated

a

loan

bank

repay

Underwriter—Eisele & King,

Riegel Paper Corp., New York .(3/6.L':,:
Feb.. 9 filed 194,155 shares of common stock (par $10)

Feb. 17

filed

units of

Proceeds—To

capital.

subscription by common stockholders
29, 1956, at the rate of one new share for
held; rights to expire on March 14.
Price—-To be supplied by amendment. Proceeds —For
expansion and equipment. Underwriter—Morgan Stan¬
ley & Co.,* New York.

ment Plan for

10

held

)

each

Pipelife Corp., Tulsa, Okla.
115,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To pay current accounts
and notes payable; for research and development; and
general corporate purposes. Underwriter — North
American Securities Co., Tulsa, Okla.

shares of

shares

of record Feb.

Nov. 29 filed

Feb.

four

Price—To be supplied by amendment.

to be offered

—Eisele & King,

23

each

Stanley & Co., New York.

(letter of notification) 8,000 shares of class A
stock (par $1).
Price—At the market (maxi¬
$6). Proceeds—For working capital. Office—34th

Feb.

amendment.

For expansion and

common

Coal

by

1981.

(3/2)

Consolidation

for

Riegef Paper Corp., New York (3/6)
Feb. 9 filed $6,000,000 of sinking fund debentures due

16

it Pittsburgh

share

new

Libaire, Stout & Co., New York.

Underwriter—Emanuel Deetjen & Co., New York.

Feb.

one

for working

and

Corp. (3/6)
Jan. 17 filed 75,000 shares of common stock (par $1).
Price—$8 per share. Proceeds — To repay outstanding
notes and for working capital.
Office—Philadelphia, Pa.
•

of

rate

plied

Aircraft

'it Pinellas Industries, Inc., St. Petersburg, Fla.

Airlines,

filed

20

tion rights applicable to not less than 100,000 shares and
such shares are to be offered to the general
public free
of the stockholders' prior
rights.]
Price—To be sup¬

(par 1 cent).

Piaeecki

Underwriter

(with an oversubscription privilege). [The company haa
obtained from certain stockholders waivers of subscrip¬

For purchase

•

49

Inc., Miami, Fla.
967,500 shares of common stock (par 10
cents) to be offered for subscription by stockholders at

Dec.

(letter of notification) 200,000 shares of common
Price—$1.50 per share. Proceeds—
of building and machinery and .for work¬
ing capital. Office—1150 Broadway, Hewlett, L. I., N. Y.
Underwriter—Golden-Dersch & Co., New York.

stock

South, Salt Lake City, Utah.
Gordon, Houston, Tex.

—Herbert

new

Farmington, N. M.
Nov. 8 (letter of notification) 2,000,000 shares of common
ctock (par five cents). Price—15 cents per share. Pro¬

Oak Mineral

,

East Fourth

common

nine

This offer will not be made to holders of the

convertible

Feb.

held

Perma Glass Fibre Fabrics Inc.

program.

Feb. 29.

shares

stock for each 45 shares of preferred

common

St. & 22nd

Feb.

common

Feb. 10

mum

Underwriter—None.

it Northern Ohio Telephone Co.; Bellevue, Ohio

100

28, 1955. Price—At par ($5 per share). Proceeds—For
working capital and general corporate purposes. Under¬
writer—None.
"
1

stockholders.

Price—At par ($25 per share). Proceeds—To be used to
reduce the demand notes outstanding. Office—Gibsonia,

Allegheny County, Pa.

each

6,492,164 shares of common stock issued for the acquisi¬
tion of the Sinclair properties under an offer of June

New South Textile Mills,

erties

the basis of nine additional shares of

on

for

stock held.

$29 per share.
Proceeds—For financing future plant additions. Office—
on

stock

shares of

Co., San Francisco, Calif.

New Britain Gas Light Co., New Britain, Conn.

Feb. 10

30, 1956

(1097)

27

(letter cf notification) 2,500,000 shares of cap¬
(par one cent)-. Price — 10 cents per share.

stock

v

^ Proceeds—For mining

expenses.

Office—Suite 201, 65

v

•

-

Continued

on

page

50

\

50

Continued

from

$400 of debentures and five shares of stock.

49

page

Shangrila Uranium Corp.
30 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—

Underwriter—Western --States In**
Co., Tulsa, Okla.

For mining expenses.

vestment

Inc., Burbank, Calif.
422,992 shares of common stock

Slick Airways,

(no par)
being offered for subscription by stockholders at the rate
of one new share for each share held of record Feb. 17?
1956; rights to expire on March 13. Up to 50,000 shares
of any unsubscribed stock may be subscribed for by
employees. Price—$5.25 per share. Proceeds—To repay
certain indebtedness; to purchase additional equipment
and facilities; and for working capital.
Underwriter—
Auchincloss, Parker & Redpath; and Allen & Co., both
Jan.

31

filed

of New York.

t

'

South States Oil & Gas Co.

stock (par $1).
share.' Proceeds—To pay for note issued
part payment for acquisition of property; for acqui¬

Feb. 8 filed 245,000 shares of common

Price—$5 per
in

sition of further oil and gas
Office —San Antonio,

leasehold interests; for de¬

costs; and working capital.
Underwriters —Dittmar &

drillings

and

velopment

Tex.

Co.; Russ & Co.; and Dewar, Robertson & Pancoast, all
of San Antonio, Tex.
Southern Indiana

Gas

unit.

per

Dec.

★

The Commercial and Financial Chronicle

(1098)

Taylor

Southern Oxygen Co.,
Feb. 1 filed $2,650,000 of

Bladensburg, Md.
6% convertible subordinated
debentures due April 1, 1966, of which $1,400,000 prin¬
cipal amount are being offered in exchange for presently
outstanding 6% convertible subordinated debentures
due 1962, par for par; the offer to expire on March 18.
The old debentures have been called for redemption
and payment March 31, 1956 at 100 lk % and accrued in¬
terest. On exchanges the one-half of 1% redemption
premium will be paid. Price—100% of principal amount.
Proceeds—To redeem old debentures, to purchase prop¬
erty and equipment for new construction and working
capital. Underwriters—Johnson, Lemon & Co., Wash¬
ington, D. C., and Union Securities Corp., New York.

it Southwestern Oklahoma Oil Co., Inc.
Feb. 27 (letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for subscription by

Price—$500

it United Funds, Inc., Kansas City, Mo.
filed (by amendment) 600,000 shares of
shares United Accumula^e„?/1J?5l;
100,000 shares of

in periodic

Corp., Norman, Okla./
Feb. 1 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital, drilling and completion of additional
wells, possible acquisition of interests in additional oil
and gas leases and exploration for oil and gas. ^Under¬
writer—Hayden, Stone & Co., New York.

U.

duce

Nov. 4

bank

loans

and

for

investment in

community TV
Office—1320 Soldiers Field Road," Bos¬
ton 35, Mass.
Underwriters—Childs, Jeffries & Thorndike and Minot, Kendall & Co.,
Inc., both of Boston,
Mass.

'.V'.':

Jan.

31, 1962 and 70,100 shares of common stock (par
$1) to be offered in units of $50 of notes and one share
of stock which will not be

separately transferable until

May 31, 1956. Price — To be supplied by amendment.
Proceeds—Together with funds from bank loan of $6,275,000, for construction program. Underwriter—White,
Weld & Co., New York.

"

shares of

it U^ S« Rubber Reclaiming Co., Inc.
(letter of notification) 7,344 shares of common
(par $1). Price — At market (at around $4 per
sharg)r Proceeds — To Alexander L. Hood, a director,
who is the selling stockholder. Underwriter—None. Sales /

casting; to buy

a fourth radio station; and for general
corporate purposes. Underwriter—Joseph Mandell Co.,
48 Hudson Ave., Waldwick, N. J.

to be made

Telechrome
Feb.

Manufacturing Co.
(letter of notification) 99,800 shares of class A

15

Jan.

stock

(par 10 cents). Price—$3 per share. Pro¬
expansion and working capital. Business—
Office — 84 East Merrick Road,
Amityville, L. I.. N. Y. Underwriter—All States Secu¬

common

Uranium Corp., Denver, Colo.
(letter of notification) 200,000 shares of comr /
mon stock, which are covered by an option held by the
underwriter. Price—10 cents per share. Proceeds—For

Proceeds—Toward redemption of

presently outstanding
preferred stock. Under¬

writer—Dillon, Read & Co., Inc., New York.
Temporarily postponed.

mining

Van Waters & Rogers, Inc., Seattle, Wash. (3/6)
14 filed 63,560 shares of common stock (par $1)'.

Corp., Dallas, Texas

Feb.

(letter of notification) 99,990 shares of common
stock (par $1).
Price — $3 per share.
Proceeds—For
working capital and general corporate purposes. Office
—Meadows Building, Dallas,
Texas.
Underwriter —

Price—To be supplied by
duce bank

Wagon Box Uranium Corp., Provo, Utah
21 filed 2,000,000 shares of common stock
(par
cents). Price—25 cents per share.
Proceeds—To
.explore and acquire claims, for purchase of equipment
and for working capital and other corporate purposes.
Underwriter—H. P. Investment Co., Provo, Utah and
Honolulu, Hawaii.
/■///'
:
Nov.

Walden Telephone Co.,
Feb. 1

or

less.

company

1,300
(par $5), to be offered to em¬
and subsidiaries in lots of 50 shares,

Price—At market.

porate purposes.
cago, 111.

Proceeds—For general cor¬
Office—1826 Diversey Parkway, Chi¬

Underwriter—None.

Suburban Land

shares

are

to

be reserved

on

exercise of

Developers, Inc., Spokane, Wash.

Proceeds—To finance its business

company.

Underwriter—None.

as

a

Underwriter—Morrii

address.

Superior Uranium Co., Denver, Colo.
Nov. 9 (letter of notification)
29,600,000 shares of
mon

stock.

Price—At

par

(one

cent

per

share).

Pro¬

★ Table Rock Laboratories, Inc., Greenville, S. C.
13 (letter of
notification) $80,000 of 6% sinking
fund subordinated debentures and
2,500 shares of class
B non-voting stock
(par $10) to be offered in units of




ceeds

Frice—To be

supplied by amendment./Pro- £
Underwriters — The e

For construction program.

—

First Boston Corp., New

York, and Johnston, Lemon &

Co., Washington, D. C.
•

'

Ltd. (3/12-16):-"tV&.
Jan. 26 filed $20,500,000 (U.S.) 32-year subordinate de-i >
bentures, due Feb. 1, 1988, and 615,000 shares of capital /
stock (no par) to be offered in units of S100 of deben-^o
Ztures and three shares of stock. Price—To be supplied r
Westcoast Transmission Co,,

»by amendment. Proceeds—Together with funds to be re->o:

tional

motor

courts; and for working capital. Office—
St., Newark, N. J. Underwriter—Berry & Co.,
Plainfield, N. J.
744 Broad

.

>

(letter of notification) 800 shares of common
(par $100); and $75,000 of 6% construction notes
15, 1963. Price—At par. Proceeds—For pay¬

shares of common stock (par one
cent), of which 1.800,000 shares are to be offered pub-^
licly. Price—$1.25 per share. Proceeds—To purchase as¬
sets of Arizona Kennel Club, and for working capital '
and other general corporate purposes. Office—Phoenix,
Ariz. Underwriter—M. J. Reiter Co., New York.
White Sage

Uranium Corp.

(letter of notification) 15,000,000 shares of capiPrice—At par (one cent per share)/
Proceeds
—For mining expenses.
Office—547 East 21st South St.,
tal stock.

Salt Lake City, Utah.
Underwriter—Empire Securities
/ Corp., Salt Lake City, Utah.
-

Willcox & Gibbs Sewing Machine Co.

/

Feb. 16

Harris & Co., Inc., Chicago, III.
•

it Tru-Tip Writing Instrument Corp.
(letter of notification) 2,182 shares of founders
stock, class A (par $3.33 V3). Price—At par ($3.33V3 per
share). Proceeds—For corporate purposes. Office—15309 10th Ave., Whitestone 57, N. Y. Underwriter—None.

•

Feb. 23

Tunacraft, Inc., Kansas City, Mo.
Jan. 17 (letter of notification) $250,000 of 6%

-cig

Feb. 13

14

Dec.

■'

(3/19-23)

-Dec. 19 filed 1,950,000
•

•

due

Under wriler-r?

Eastman, Dillon & Co., New York.
Western Grevhcund Racing, Inc.

Trinidad Brick & Tile Co.

stock

Office—Calgary, Alta., Canada.

system.
■

•

•

(letter of notification) 22,000 shares of common
stock (par $5) to be offered for subscription by common ;
stockholders of record Feb. 27, 1956 on the basis of one 3
new share for each 10 shares held; rights to expire
on I
March 23.

Trice—$7.15

per

share. Proceeds—For general 9

corporate purposes. Office —214
York. Underwriter—None.
^

West 39th St.,

Newri

•

.

-

4- Williamron Co.,

Cincinnati, O' io
(letter of notification) 20,656 shares of class B
stock (par $1) to be offered for subscription by '

Feb. 20
12-year
common
sinking fund debenture notes
due Jan. 1, 1968.
class B common stockholders on a l-for-7 basis. Price—
Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬ / $6.84 per share. Proceeds—For working capital. Office
—3500 Maison Road, Cincinnati, Ohio.
ald, Evans & Co., Kansas City, Mo.
Underwriter—
•

ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O
Box 127, Arvada, Colo.

Feb.

•March 20.

Motel Corp.
(letter of notification) 80,000 shares of common
stock (par 10 cents).
Price—$2.50 per share. Proceeds
—For purchase of property and construction of addi¬

registered
com¬

•

-;j

*

.

Washington Gas Light Co. (3/5)
15 filed a minimum of 148,917 shares of common

16

man,

same

Avenue, !

Feb.

Treasurer; and G. F. Kennedy is Secretary.

per share; and of common, $15 per share.
Proceeds—For improvements and
working capital. Of¬

Summit Springs Uranium
Corp., Rapid City, S. D.
Oct. 3 (letter of notification)
1,200,000 shares of commoD
«tock (par 10 cents). Price—25 cents
per share. Proceed!
—For expenses incident to
mining operations. Office—

Orange

/stock (no par) to be offered for subscription by common
/ stockholders of record March 2, 1956, at rate of one new
share for each eight shares held; rights to expire on

J. R. Hoile is President-

fice—-909

Harney Hotel, Rapid City, S. D.

/Philadelphia, Pa.

life insurance

ferred, $100

Sprague Av6., Spokane, Wash. Under¬
writer—W. T. Anderson & Co.,
Inc., Spokane, Wash. -

Office—75

•

Inc.

ing notes payable and accounts payable and operating
capital.
Office—Trinidad, Colo.
Underwriters—Fair-

West

program.

Underwriter—Blair & Co., Incorporated,

shares each, and at $8 per unit, under a condition " Zceived from insurance companies and banks and from'Z
sale of an additional 3,271,000 shares of stock to West-i-*
that each purchaser donate one share out of every four
coast Investment Co., to be used to construct a pipe-line •
shares purchased to TranSouth Educational Foundation,

Dec.

Brickley,

Walden, N. Y.

four

Feb. 2 (letter of notification) 920 shares of
6% cumula¬
tive non-voting preferred stock
($100 per share) and
2,160 shares of common stock (par $10). Price—Of
pre¬

construction

for

■

options to be granted to employees and directors of the
company.
Class A shares are to be offered in units of

Walr*en, N. Y.

(letter of notification) 1,500 shares of cumulative

preferred stock, series B (par $50). Price—To be sup¬
plied by amendment. Proceeds—To redeem $19,000 5%%
preferred stock; to repay bank loans of $40,000; and

—•

it TranSouth Life Insurance Co., Columbia, S. C.
Feb. 21 filed 941,250 shares of class A non-voting common stock (par $1) and 10,270 shares of class B voting
common stock (par $1) of which 100,000 class A and all

Under¬

/five

Feb. 29 filed

Copper Mines Ltd., Toronto, Canada
Feb, 9 filed 200,000 shares of common stock (par $1) to
be offered publicly to residents of the United StatesJ
Price
50 cents per share. Proceeds — For exploration
and development costs./ Underwriter—Harold W. Lara,
241 Sanford St., Rochester, N. Y.

amendment. ^Proceeds—To re¬

borrowings and for working capital.

writer—Blyth & Co., Inc., San Francisco and New York.

Neblett, Los Angeles, Calif.

it Thunder Basin Oil Co., Gillette, Wyo.
Feb. 27 (letter of notification) 600,000 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—For expenses incident to development of oil and gas
properties. Underwriter—None.

Office—310 First National Bank Bldg.,
Underwriter — Amos C. Sudler & Co.,

expenses.

Denver, Colo.
same city.

Offering—

Jan. 20

B

Price—$1

Utco

200,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.

class

(par 25 cents).

Jan. 30

filed

Thomas F.

.

per share.
Proceeds—
Office—538 East 21st South St.,
Underwriter — Pioneer Invest¬
ments, Salt Lake City, Utah.

.

Tex-Star Oil & Gas

Exploration Co., Salt Lake City, Utah

(letter of notification) 77,875 shares of common

For mining expenses.
Salt Lake City, Utah.

Texas Eastern Transmission Corp.

first

;

50,000 shares of capital

Proceeds—For ex¬
South
Underwriter—Fenner-StreitCo., New York City.

13

stock

filed $10,200,000 of participations in the com¬
Employees Savings Plan, together with 85,804
shares of capital stock (par $25) which may be acquired

of 5.50%

&

Feb.

24

190,000 shares

notification)

incident to mining operations. Office—1802

Uranium

pany's

30

of

Price—At par ($1 per share)*.

man

it Texas Co., New York

N[ov.

(letter

Main St.. Las Vegas, Nev.

.Inc., New York.

pursuant to the plan.

20

penses

apparatus.

rities Dealers,

the American Stock Exchange.

stock.

ceeds—For

Electronic

on

Urania, I nc., Las Vegas, New

Tremont

stock

common

ployees of

Co-.

Montgomery Ave., Philadelphia, Pa. Underwriter
Broadway, New York.

lumbia Securities Corp., 135

Feb. 23

Feb.
exceed

10 cents). Price—$1 per share. Pro¬
For general corporate purposes.
Office—8620

stock (par

ceeds

■

it Stewart-Warner Corp., Chicago, III.
17
(letter of notification) not to

Feb.

,

stock

of the

Spokane Natural Gas Co.
Feb. 2 filed $3,505,000 of subordinate interim notes due

•

shares of class A

(letter of notification) 300,000

—For conversion of station "WARE" to full-time broad¬

Tomrock

antenna systems.

Fund.

& Chemical Corp.

Automatic Machinery

S.

common

—

in units of $500 principal amount of debentures and 50
shares of stock. Price—$500 per unit. Proceeds—To re¬

insurance and tne;

*

—

10-year

Continental Fund; $22,OOU,OUU

United

investment plans without

underlying shares of United Accumulative

Tele-Broadcasters, Inc., New York
'
Jan. 11 (letter of notification) 200,000 shares of common
stock (par five cents). Price—$1.50 per share. Proceeds

it Tide Water Associated Oil Co.
$100,000,000 of 30-year sinking fund deben¬
tures due 1986.
Price
To be supplied by amendment.
Price—$10 per share. Proceeds—For ex¬
"'•Proceeds
To finance various projects, including con¬
penses incident to development-ef oil and gas properties.
Office—801 Washington Bldg., Washington, D. C. Under¬
struction of the company's Delaware Flying A refinery;
writer—-None.
for acquisition and development of crude oil production,
for expansion and improvement of refining and trans¬
★ Spencer Grean Fund, Inc., New York
Feb. 23 filed (by amendment) 200,000 additional shares
portation facilities; and for repayment, in whole or in
of common stock (par $1). Price—At market. Proceeds
part, of short term borrowings. Underwriters—Eastman,
Dillon & Co.; Kuhn, Loeb & Co.; and Lehman Brothers.
—For investment.

subordinated convertible debentures due March .1, 1966
and 30,000 shares of common stock (par $1) to be offered

1956

Thursday, March 1,

Income Fund; 800,000

Petroleum

stockholders.

it Spencer-Kennedy Laboratories, Inc.
Feb. 24 (letter of notification) $300,000 of 6%

.

Feb. 24

Office—211
Underwriter — Edgar M.

For working capital.

—

St., Greenville, S. C.
Norris, Greenville, S. C.

Feb.

& Electric Co.

shares of common stock (no par) be¬
ing offered for subscription by common stockholders of
record Feb. 21, 1956 on the basis of one new share for
each 11 shares held; rights to expire on March 8. Price—
$28.50 per share. Proceeds—For repayment of bank loans
and for new construction. Underwriter—Smith, Barney
& Co., New York.
Feb. 2 filed 83,030

Proceeds

Frank

.

subordinated

1

•

•

Union

of Texas

Oil

Co., Houston, Texas
Jan. 19 (letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production.
Office — San
Jacinto Building, Houston, Tex. Underwriter—Mickle &

Co., Houston, Texas.

None.

>

•

-

/

.

^Winn-Dixie Stores, Inc. (3/15)
/ I'
Feb. 24 filed $10,000,000 of sinking fund debentures due
April 1, 1976. Price — To be supplied by amendment.
Proceeds
For carrying increased inventories; and for
—

expansion, improvement and modernization of company's

olume

in

Number 5512

183

Citizens & Southern National Bank, Atlanta, Ga.
4. it was announced Bank has offered 100,000

other facilities. Office—

and

warehouses

stores,

cksonville, Fla. Underwriter—Merrill Lynch,
enner & Beane, New York.
w.

.v

-additional shares of

..

holders

Lander,,Wyo.
c.
6 (letter of notification) 273,000 shares of capital
ock (par 50 cents). Price—$1 per share.
Proceeds—
or
mining operations.
Office—268 Main St., Lander,
Wy-Cal Uranium Enterprises, Inc.,

ith State

St., Salt Lake City, Utah...

..

20

it

?

/

Price—Around $4.25

stock.

common

it

15

Gas

was

each

nine

System,

on

•<

\

a new

issue of 20,000 shares of preferred

(par $100). Proceeds—About $2,000,000, together
with $2,000,000 from private sale of notes, to repay bank
)loans. Underwriters—H. M. Byllesby & Co. (Inc.) and-

?Hayden, Stone & Co., New York.

Feb. 20 it

was

.

,

(7/11)

• Florida Power Corp.

announced company plans to issue and sell

of first mortgage bonds. Underwriters—To
be determined by competitive bidding. Probable bidders:

; $20,000,000

: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); Glore,

(10/2)

Oct. 2.

announced stockholders will vote March

approving

,sto,ck

Inc.

System, Inc.

on

was

'

Forgan & Co.; The First Boston

announced company

ed to be received

registration is expected

early

reported

was

150.000 shares of

for

12

may issue and sell
$30,000,000 of debentures. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders; Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expect¬

tings
eb.

Gas

Columbia
Feb.

Wyoming Wood Products, Casper, Wyoming T
eb. 17 (letter of notification) 90,000 shares of common
ock (par 10 cents). Price—25 cents per share. Proceeds
For-working capital, etc. Office — 300 Consolidated
oyalty Bldg., Casper, Wyo.-Underwriter—None. '(*.' *• .r

Miami, F!a.

share

new

(5/1)
Jan. 9 it was reported company plans to issue and sell
$40,000,000 of 25-year debentures. Underwriters—To be
determined by competitive bidding.
Probable bidders:*
Halsey, Stuart & Co, Inc.; Morgan Stanley & Co. Bids—
Tentatively expected to be received on May 1.

properties. Price—Shares
be valued at an arbitrary price -of $4 per share. Proeds—To acquire properties. Underwriter—None.

Products Corp.,

one

.Feb. 10 it

to stock¬

held as of Jan. 20, 1956; rights to expire on
2:-Price—$30 per share. Proceeds—To increase
capital and surplus.

Columbia

such working interests and

Air-Vue

of

(par $10)

shares

Wycotah Oil & Uranium, Inc., Denver, Colo. ~
ov. 10 filed 1,500,125 shares of common stock (par one
nt) to be offered only to the owners of percentages of
orking interests in certain oil and gas leases and to the
iers of certain uranium properties, and in exchange
r

basis

stock

March
"

Underwriter—Valley State Brokerage, Inc., 2520

ryo.

the

on

common

Pacific Electric Co.

Federal

Feb.

Pierce,

51

(1099)

The Commercial and Financial Chronicle

...

Florida
Feb.

Corp^Bids—Expected

Registration—Planned for June J4.

July 11.

13,

/ company

&

Power

(4/3)

Light Co.

McGregor Smith, Chairman, announced-that
plans to issue and sell $15,000,000 of first mort¬

gage bonds.
Proceeds—For construction program. ^Un¬
* Columbus & Southern Ohio Electric Co. (4/3)
derwriter—To be determined by competitive bidding.
Feb. 24 it was announced company plans to issue, and
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrillsell $12,000,000 of first-mortgage bonds due 1986.
Pro¬
Lynch, Pierce, Fenner & Beane; Blyth & Co., Inc., and
ceeds—To repay bank loans and for construction pro¬
Lehman Brothers
(jointly); White, Weld & Co.; The
gram.
Underwriter—To be determined by competitive
*. First Boston Corp. Bids—Expected to1 be received up to*bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
*11:30 a.m. (EST) on April 3. Registration—Scheduled for
Lee Higginson Corp.; Blair & Co Incorporated and Bax¬
March 2.
ter, Williams & Co. (jointly); Salomon Bros. & Hutzler;.
• General Tire & Rubber Co.
White, Weld & Co.; Lehman Brothers; Dillon, Read &
Co. Inc: and The Ohio Co. (jointly); Union Securities
Feb. 24 stockholders approved a proposal to increase
Corp. and Glore, Forgan & Co. (jointly). Bids—To be
authorized
common
stock to 2,500,000 from ^1,750,000
opened at 11 a.m. (EST) on April 3 at City Bank Farm¬
shares and the authorized preference stock to 1,000,000
ers Trust Co., 2 Wall St., New York, N. Y.
Registration—
from 350,000 shares: also a proposal that any issue of
Planned for about March 13.
debentures may include a privilege to convert intd" com- I
mon stock and permit the company to issue warrants to
Consolidated Water Co.
purchase common stock, provided the total that may be
Jan. 16, Frank A. O'Neill, President, announced that the
outstanding at any one time does not exceed 600,000
company sometime between now and the summer of
shares. [The company expects to 'issue 23,000 additional
1956, will probably do some additional financing. Pro¬
preference shares—5,000 for acquiring stock and prop¬
ceeds—For. expansion.
Underwriters—The* Milwaukee
erty and 18,000 for cash. Having completed long-term
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
borrowing negotiations of $30,000,000 from insurance
& Share Corp. underwrote class A common stock offer¬
companies, the company expects to sell not more than
ing made last August.
$15,000,000 in debentures.] Underwriter—Kidder, Pea¬
★ Cribben & Sexton Co.
body & Co., New York.
•//.'
/
^ )
Feb. 27 it was reported stockholders will vote March 6
*;
on approving a- proposal to- increase the authorized com¬
Georgia Power Co. (3/29)
Jan. 23 it was announced company plans to issue and sell
mon stock from 250,000 shares to 750,000. shares, the ad.

share.

r

Proceeds

—

For expansion program.

Under-

riter—Arthur M. Krensky & Co.,, Inc., Chicago,
American

Gas

Electric

&

was* reported

it

30

.

111./

Co.

plans to offer about
0,000,000 of common stock to its common stockholders
June or July.
Underwriter,— To be determined by
mpetitive bidding. Probable bidders: The First Boston
orp. and Union Securities Corp. (jointly); Blyth & Co.,
n.

company

c.

'

.

American Security & Trust
eb.

21

the

offered "to

Bank

-

;,Y

C"»., Washington, D. C.
stockholders

its

of

record

_

eb. 10 the right to subscribe on or

before March. 13 for
shares of its capital stock (par . $10) on the

4,666%
sis of

share for each three shares held.

new

one

$43.50 per share. Proceeds
'rplus. Underwriters—Alex.

.

Price

To increase capital and
& Sons;. Auchin-

—

Brown

.Co., Inc.

^

Proceeds—For conUnderwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
$12,000,000 of first mortgage bonds.

future

struction program.

issued in connection with'
Underwriter—May be Hornblower &

financing.

Weeks, New York.

American

Shopping

Power

Delaware

Centers,\ Inc.

will soon offer pub-civ some new securities in the approximate amount of
,000,000. Proceeds—To acquire shopping centers. Ofoe—Minneapolis. Minn,
Underwriter—Carl M. Loeb,
hoades

&

Shields

petitive

announced

was

&

Co.,

New

was

Oil

Corp.

' ;

^

V./ ;

:-

/

16

company.

holders
on

/Bank
an.

additional .shares
March

of-record

each

ockholders

15

on

12

capital

stock

in .the. ratio

of

to

stock-

one

new

held, -subject to approval of
March/6; rights to expire on April 2.
later.

Proceeds—For

expan-

etc.; Underwriters—Blyth & Co., Inc. and Dillon,

n,

ead & Co. Inc.

California Bank, Los

Angeles, Calif,
offered 169,200 shares of common stock to

eb. 9 Bank

ockholders

on

basis

the

of

one

was

new

share

for

each

16 it.was

reported

company

may

issue and sell

$10,000,000 first mortgage bonds if market condition!
permit. Underwriter^—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Beane and White, Weld & Co. (jointly); Salomon Bros.
&.Hutzler and Union Securities Corp. (jointly); Kuiui,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee

(5/7) ,,./:v:.

Co.

announced company plans to

issue and

Proceeds—To repay bank loans

bonds due 1986.

Underwriter—To be de¬
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
competitive bidding.
Probable bidders:
ly); Stone & Webster Securities Corp.,
'
/. 1
Halsey, Stuart & Co. Inc.; The First Boston Corp.^Mor¬
/
Jersey Central Power & Tight Co. "
* *
gan Stanley & Co.; Stone & Webster Securities Corp.
Feb. 6 it was reported company may iJTMay or June
Bids—Tentatively expected td be received on/May 7.
'
•; 1956, issue and selt $9,000,(5^00 first mortgage bonds.
termined

.

by

'

its

t

to offer-

plans

Gulf States Utilities Co.

May

Spring. $30,000,000 of first and refunding mort¬

Feb. 15 it

(3/13)

company

of

income

shares

determined

be

rice—To

■

;

.

the

announced

was

for

are

outstanding convertible 4%%

par-for-par basis.

a

600.000
olders

of Its

of America, N. T. & S. A.
it

17

gage

2010, which it proposes to offer in exchange

up Feb. 1,
onds

ICC

sought

it.

15

sell this

^, V-

authority 'to issue up
^$54,710,000 of convertible 4%% debentures, series A,

eb.

Power

'Duke

and for construction program.

; "

tion—Planned for March 2.

Offering—Expected in June or July.

Feb.

Inc.; Lehman Brothers; Blyth &

Co., Inc. and Kidder, Peabody & Co. (jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly).
Bids—Expected to be received on March 29. Registra¬

construc¬

(jointly); Carl M. Loeb, Rhoades & Co.; Blyth & Co.
Inc. and The First Boston Corp."(joinify); White, Weld
& Co. and Shields & Co. (jointly); Lehman Brothers.

stockholders. ^It is also planned
•increase the*authorized common stock from 1,000,000
res to 3,000,OCO shares and effect a two-for-one stock
lit. Underwriter—Glore, Forgan & Co.-, New York/
Rft.'

Proceeds—For

stockholders.

body & Co. and Merrill Lynch, Pierce, Fenner & Beane

common

Ohio

common

Underwriter—To be determined by com¬
bidding.. Probable bidders: W. C. Langley &
Co. and Union Securities Corp. (jointly); Kidder, Pea¬

announced stockholders will vote April 19

Baltimore &

to

Harriman Ripley & Co.

tion program.

approving the creation of a new authorized issue of
0,000,000 preferred stock, of which the company innds to initially issue $10,000,000, which would be conrtible into common stock and may be first offered for

scription by

was

undertake

first

York.

Ancferson-Prichard
eb.17 it

company,

Inc.; Morgan, Stanley & Co.; The First Boston Corp.;
& Co. and Salomon Bros. & Hutzler (jointly);

Co.

Light Co.

announced that the company expects to
some
common
stock
financing,
probably

Sept. 28 it

23 it

n.

,

...

ditional shares probably to be

Parker & Redpath; and Folger, Nolan-W. B. Hibbs.

oss,

,

announced company proposes to offer to
stockholders this Spring (probably to holders

was

common

May 10, 1956) additional common stock on a

of. record

>

Lehman*

W?ld

white

Peabody

Kidder

&

SynchfierceFenner & Sie<fiointlyp

Kansas

Duquesne Light Co. .(4/4)

23, Philip A'. Fleger, 'Chairman of the Board, an¬
nounced that company plans to sell $20,000,000 of bonds.
Underwriter — To be determined by competitive bid-

Feb'.

Co"'

Brothe's, White, Weld & Cm. Kidder Peabody & Co

expire on May 25. This would !
involve 387,478 shares. - Proceeds — About $9-,000,000, to > Merrill Lynch, Pierce,
ha near)
Nnnf>.
be used tnr- r.r»natr*nr>tirvn program;* Tlnfl*»rwritpir
for construction nrntfrflm
Underwriter—None. i &jC0. incorporated.
l-for-25 basis-rights to

•

&'Co-

i? enner cc ueane (.jointly;,
-

' in

»•

Blair

lair

¬

City.Power & Light Co. (4/1^-20)
plans to issue and sell,

Feb. 7 it was announced company

probably in mid-April, 120,000 shares of pre/erred stock
(par $100).
Proceeds—To retire short-term bank loans,

Probable bidders:, Halsey, Stuart &, Co. * Inc.; I Underwriters—Blyth & Co., Inc., and The First Boston
White, Weld & Co.; Kuhn; Loeb & Co., Union Securities * Corp.
Corp. and A. C. Allyn & Co., Inc. (jointly); Drexel &
Kentucky Utilities Co.
Co. and Equitable Securities Corp (jointly); Glore, For¬
Jan. 25 it was reported company plans to issue and sell
gan & Co.; Harriman Ripley & Co. Inc.; The First Bos¬
$10,000,000 of first mortgage bonds some time in April.
ton Corp. Bids—Expected to be received up to 11 a.m.
Underwriter—To be determined by competitive bidding.
(EST) on April 4 at Room 1540, 15 Broad St., New York,
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.,
ding.

.

shares held

yen

as

of record Feb. 8, 1956; ,rights to

March 9. Price—$42.50 per share. Proceeds—
0 increase capital and surplus.
Underwriter—Blyth &
o.f Inc., Los Angeles, Calif.

xpire

on

N. Y.

California Oregon Power Co.
eh. 13 it

plans to issue and? sell
April or May $16,000,000 of first mortgage bonds.
Jnderwriter—To be determined by competitive bidding,
robable bidders: Halsey, Stuart & Co. Inc.; Blyth &
was

reported

company,

Inc. and The First Boston Corp. (jointly); Lehman
rothers; White, Weld & Co.; Merrill Lynch, Pierce,

o.,

&

enner

Beane

Illinois Light Co.

Central
an.

25 it

ommon

cribe
f

0

and Kidder,

was

Peabody & Co.

(jointly).

(4/4)

or

common

shares

before April 19 for 100,000 additional shares
stock

held.

on

the basis of

Price—In

the

one

new

share for each

neighborhood of $5G/per

hare. Proceeds—For construction program. Underwriter
Union Securities
ected

on

or

Corp., New York.

about March

Registration—£x-

15.

;

Chicago & North Western Ry. (3/1)
will be received up to noon (CST) on

jids

t Room

from the company f

1, 1955, and to mature

Probable bidders: Hal¬
Stuart & Co. Inc.; Salomon Bros. & Hutzler.;* -t

15

ey,

111.,/for

of $3,9DO,OCO equipment

rust certificates to be dated Nov.
n

^

March 1,

1400, 400 West Madison St., Chicago 6,

he purchase

equal annual instalments.




$1,000,COO and $2,000,OGO thrcugh the sale of some addi¬
tional common stock through a group of underwriters.
Business—Aircraft floats and components.
El

Feb.

scribe
of

Electric Co.

Paso

16

common

announced company plans to offer to its

stockholders of record April 3 the right to sub-

on

Corp., College Point, L. I., N. Y.
it was reported company plans to raise between

* Edo
Feb. 27

on

was

or

common

before April 25 for 56,025 additional

stock

on

a

l-for-15 basis.

shares

Dealer-Manager—

Probably Stone & Webster Securities Corp.

Registration

—Expected March 15.
Paso Electric Co.

El
Feb.

16 it

was

(5/8)

shares of

Underwriter—To be determined by

Feb. 29

Lighting Co.

company

(4/26)

announced that it plans to issue and

$12,000,000 of preferred stock following approval by
the New York P. S. Commission and clearance by the
Securities and Exchange Commission.
Underwriters—
sell

Blyth & Co., Irlc.; The
Langley & Co.
•

sell
(no par).

reported company plans to issue and

cumulative preferred stock
competitive bidding.
Probable
bidders:
Merrill
Lynch, Pierce, Fenner &
Beane; Salomon Bros. & Hutzler; Stone & Webster Secu¬
rities Corp.; Blair & Co. Incorporated; Equitable Secu¬
rities Corp.; Union Securities Corp.; Kidder, Peabody &
Co., White, Weld & Co., and Shields & Co._ (jointly).
Bids—Expected to be received on May 8. Registration—
Tentatively expected April 10.
20,000

Kuhn, Loeb & Co.
* Long Island

(4/5)

reported company ulans to offer to its
stockholders of record April 4 the right to sub¬

it

Equitable Securities Corp.;
White, Weld & Co. (joint¬
ly); Union Securities Corp. and Merrill Lynch, Pierce,
Fenner
&
Beane
(jointly); Baxter, Williams & Co.;
Inc.; Lee Higginson Corp.;
Kidder, Peabody & Co. and

Maine

Bonding & Casualty Co.

Feb. 4 it was
to

First Boston Corp.; and W. C.

announced that the company plans to offer

its common stockholders on a

3-for-7 basis an addi¬

of common stock (par $10). Under¬
writer—To be selected. Meeting—Stockholders on Feb.

tional 30,000 shares

authorized common stock
*50,000 shares to 100,000 shares. Of the increased
stock, 20,000 shares are to be issued as a 40% stock
dividend on March 1 to stockholders of record Feb. 17.
17

approved an increase in the

from

Continued

on

page

52

?>"

52

A

'

V

i'k.

Continued

jrom

construction

it Manufacturers & Traders Trust Co., Buffalo, N. Y.
Feb. 25 it was announced Bank plans to offer 340,000 ad¬
ditional shares ol its capital stock (par $5) to its stock¬
holders of record March 9, 1956, on the basis of one new
share for each lour shares held; rights to expire on

•

Price—Expected to be about $20 per share.
capital and surplus. Underwriter
—The First Boston Corp., New York.

Jan. 19 it

later

announced that following termination of

was

bankruptcy proceedings expected

today (March 1), the
reorganization managers planned to issue invitations
about March 5 for an issue of approximately $23,000,000
of new collateral trust notes, which are to be first offered
in exchange for New Orleans, Texas & Mexico Ry. first,
mortgage bonds, of which there are outstanding $41,000,000.
Underwriter
To be determined by competitive
bidding. Probable bidders may include: Halsey, Stuart
& Co. Inc.; Kuhn, Loeb & Co.; Morgan Stanley & Co.
Bids—Expected to be opened on March 14.

Illinois

Gas

States

Power

Co.

(Minn.)

announced

Nov.

18

David

C.

pany

has filed

an

for

the basis of

one

share for each

new

12

shares

•

and

Bear, Stearns & Co. (jointly); Carl M. Loeb, Rhoades
Co., Ladenburg, Thalmann & Co. and Wertheim & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane, Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
Bids—Expected on April 18.
I

certificate

of which has not

May be

yet been determined.

as

determined by

competitive

announced company plans to issue and sell
first mortgage bonds during
October

of

Underwriters—To be determined by competi¬
bidding.
Probable bidders:
Halsey, Stuart & Co.

repay

Co.

bank loans.

Underwriter

ing

Mohawk

issuance

bonds due

Power

some

time

Spring.

Proceeds—For

coming Presidential

to this trend of

was

simply

a

the hands" and

came

out at

their anoearance

race.

'case of

on

other

"sitting

waiting for the

White House announcement which

wearing
of

on

people

the

in

nervous

the

business, judging by

of the

some

attending "syn¬
meetings," the sessions at

which

the

to new

final, touches

are

V

offerings.

described
tions

put

competent
was

ffping

observer, that
to

do

no

anything




or

one

muva

as

carried

But for the

These gatherings merely served

one

on

was

one

file
.

thinking

consideration.

a

much

as

to any
Institutional
as

later in

cific's

Virginia Electric & Power Co.
Feb. 6 it

announced company

was

of

first

the

scene

ob¬

leaned

wait and

in

some¬

upset

present

borrowers

and

plans

happens

to

of

potential
investment bank¬

ers-March shapes up as easily the
best month to date this year for

volume

eme-

nothing

the

month, Missouri Pa¬

$25.6

million

of

notes

great

see

deal

common

of

business.

Roughly

a

dozen

.substantial-sized

medium

corporate

to

debt

more

sense,

what 2ke< does" idea

and appeared satisfied to sit it out.

and

issues

two

for

Among the-larger undertakings
are

next

week's

Bell

Telephony

Meantime, the several relatively of Pennsylvania's $35 million; Pa^new^offerings -which made -cific .Gas ,& Electric, .$25...million.

small

;

<

the

Cheer

The

com¬

Co.

one

account

secondary undertak¬

ings in quite a while.
Books had scarcely been opened,
with
the
shares
priced at $87,
when the sponsors were able to
that

announce

;

the

offering

had

million

a

turnover

gross,

investment

it

is

funds

of

this money,

some

evident
are

waiting opportunities.

.

1

$13

that

around

None of

incidentally, reverted

to the company,

—r

Decision

week

yielded

Eisenhower

of

to

spirit

a

satisfaction

and

his

willingness to

again.

run

The
will

-

full

not

issue

on

President

by

effect

be

his

of

reflected

in

decision
the

new

however, until the
early part of next week, sin e the
market,

bulk
the

of

business

current

in

through before the
:

prospect

period

had

for

gone

newv

•

.;

Consensus, however,-seemed to

be that the way now was clear for

oversubscribed.

When it is figured that this deal

involved

Ike's
of

announcement

of

company's chairman, enjoyed
of the fastest

the

the
mar¬

the

been

bonds.

uncertainty which
had prevailed through the firsihalf
of

of

for

aura

of confidence

Aluminum

of

stock

America

mortgage

Inc.; Kuhn, Loeb
Co., American Securities Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld & Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

aggregate of $47.5 million.

mon

refunding

&

Quick Secondary

Best Month Ahead
Provided

perhaps aptly vwhich

and

(9/25)

plans to issue and sell

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.

Fruehauf Trailer's
an

expected to be offered for subscription by

are

stockholders. The offering will be underwritten.

common

Bankers who handled the

undertakings are on the calendar,
iooting up |j*a total of something
mSme^ the rank.'and
l^ ^nriBion between now
pretty heavily to the and theclofe'ofthe month.
a

weight than |4aiti

'l\.. •" J

to -make
it
plain "rightly
wrongly,"according to at least

according to

The situation

comment of those

dicate

of which

keting of 150,000 shares of

puzzling, "afraid not to do
thing."

systems

reported

were not in a
venturesome mood to say the
leastv

mid-morning yester¬

servers^ were, as
they,* put it,
"afraid to do anything" and more

underwriting

stock from 160,000 Shares
(par $50)
(par $10) in order to effect a five-forone
stock split-up; also on increasing the authorized
common stock to 1,000,000 shares
(par $10), all or a part
common

portfolio managers

The rank and file of underwrit¬
ers,

were

the slow side due

day.

The last several days have been

authorized

to 800,000 shares

$87,000,000, including $20,000,000 budgeted for
1956.
This large expansion, the
company says, can be
financed wholly by debt and from internal
sources.
Un¬

bit

It

changing the authorized preferred stock from 80,006
(par $50) to 400,000 shares (par $10) and the

shares

amount to

before President Eisenhower made
known his decision on the forth¬

on

on

;

announced stockholders will vote March 9

was

$20,000,000

Corp.

this

.(4/19)

President, announced that
issue and sell $16,500,000 of first

• Puget Sound Power & Light Co.
Feb. 15 the company announced that it
estimates that its
construction
program
for
the
years
1956-1959
will

reported company is tentatively consider¬
and sale of additional general
mortgage

1987

it United States Envelope Co.
Feb. 17 it

Planned for about March 23.

.

was

1, 1956 to April 1, 1971, inclusive. Prob¬
Co. Inc.; Salomon Bros.

bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; White, Weld & Co.; Lehman
Brothers and Blyth & Co., Inc.
(jointly). Bids—Tenta¬
tively expected to be opened on April 19. Registration-

determined by competitive
bidding. Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Bids—Expected to be received on April 30.
;

* Niagara

Inc.; Lehman Brothers and Bear, Stearns & Co. (jointly);
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; White, Weld & Co. and Shields
& Co. (jointly).
V

tive

be

Feb. 27 it

—

—

bidders:

sell

and

15 it was reported company may offer in
May
$35,000,000 of first mortgage and collateral trust bonds.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

mortgage bonds. Proceeds
To redeem $13,150,000 of
4%% mortgage bonds and for conversion to natural
gas
operation.
Underwriter—To be determined by
competi¬

Telephone & Tele¬

issue

may

Union Electric Co. of Missouri

bidders: Halsey, Stuart &

the company plans to

$55,000,000 of refunding mort¬
Proceeds—Together with
sale of 1,100,000 additional shares of common

company

Feb.

Portland Gas & Coke Co.
Feb. 24, Charles H. Gueffroy,

(4/30)

Logan

(10/1)

reported

was

404

determined at competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

1

.

•

bonds due April 1, 1996.

graph Co., to be used to

.'

.

it

18

—

around Oct. 1, $10,000,000 of first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be

& Hutzler.

company to issue and sell

—To

Office

Street, Adrian,
Mich. Underwriter—Golkin & Co., New York. Registra¬
tion—Expected in very near future.

Pennsylvania RR.

able

Commission authorized the

stock at $100 per share to American

capital.

working

determined

ments from Oct.

Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co.
(jointly);
Lehman Brothers; The First Boston
Corp.; Equitable Se¬
curities Corp.; Merrill Lynch,
Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

funds from

purchase 60,000 shares of common stock at $8

share in units of $250 of debentures, 25 shares of
preferred stock and detachable warrants (good until
March 31, 1961) to purchase 15 shares of common stock.
The offering is to be made on the basis of one unit for
each 100 shares held as of a date not yet determined.
Price—$418.75 per unit. Proceeds—For expansion and

(3/13)
Bids will be received by the
company up to noon (EST)
on
March 13, at Room 1811, Suburban Station
Bldg.,
Philadelphia 4, Pa., for the purchase from it of $7,560,000 equipment trust
certificates, series FF, to be dated
April 1, 1956 and mature in 30 equal semi-annual instal¬

1956.

gage

Corp., Adrian, Mich.
corporation plans to offer
stockholders to purchase $1,000,000

per

Underwriter—To

program.

plans to otter pub¬

announced

was

it Tampa Electric Co.

•

England Power Co.

New York Telephone Co.

tc

rants

was reported
company proposes issuance and
$9,000,000 of preferred stock early next year,

construction

Beaumont, Texas

company

rights to its common
sinking fund subordinated debentures, 100,000
shares of 60-cent cumulative preferred stock, and war¬

by competitive bidding. Probable bid¬
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co,;
The First Boston Corp.; Smith,
Barney & Co.; Harriman
Ripley & Co. Inc.- Bids —■ Expected to be received in

Kidder, Peabody &

•

it

1

Feb.

April.

(probafiiy

of 5^2%

ders:

(jointly).

Feb. 21 the New York P. S.

Stubnitz Greene

Feb.

maturity, and

Pennsylvania Electric Co.

be

bidding.

securities

licly to Texas residents 75,000 shares of capital stock.
Price—$1.50 per share. Business—To produce, sell and
distribute syndicated films for television. Underwriter—
Porter-Stacy Co., Houston, Tex.

was

Proceeds—For

Corp.

was

at

announced

was

sale

and Wood, Struthers & Co.
(jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities
Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane,

$10,000,000

stock

16 it

Jan.

Dec. 19 it

Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities

Co. and White, Weld & Co.

gas

Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.
Bids—Expected to be received in April./ ;;;

Under¬

plans to sell in 1956

new

be placed privately.

Pennsylvania Electric Co.

of

of

Spencer Telefilm Corp.,

Boston

•

$10,009,000

may

necessity to build a
pipeline off-shore the coast of

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

plans to merge its
eubsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one
company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant
company, the

announced company

was

.

Underwriters—For stocks: Hornblower & Weeks,
York; Wiliam R. Staats & Co., Los Angeles, Calif.;
First California Co., San Francisco, Calif.
Bonds

of

—

New England Electric System
3 it was announced company

competitive bidding.
Inc.; Blyth & Co.,
& Co. and Union

and

reported company plans to issue and sell
about $25,000,000 of first mortgage bonds.
Proceeds
To repay bank loans and
for new construction.

Jan.

Co.

Gas

reported company plans to issue and sell

May $40,000,000 of first mortgage bonds. Proceeds—
of bank loans and construction program.

New

stock). Underwriter—Salomon Bros. & Hutzler,

Dec. 19 it

&

California

$7,000,000 first mortgage bonds and $3,000,000 preferred
and common stocks).
Proceeds—For construction pro¬

York.

JNew

to offer

reported company is planning

was

was

Nov. 7 it

Houston, Texas

convertible into preferred

common

held.

it

16

approximately

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., Lehman Brothers

Corp.

i

.

Inc.; Lehman Brothers, White, Weld
Securities Corp. (jointly).
/ Southern Nevada Power Co.

the State of

notes,

Power Co.

Probable bidders: Halsey, Stuart & Co.

Bintliff, President, announced com¬
application with the Federal Power

a

364-mile submarine

company

bidding, may

gram.

Offshore Gathering Corp.,

System (4/18)
plans to offer to its
etockholders 834,976 additional shares of common stock
was

Thursday, March 1, 1956

.

Underwriter—To be determined by

Forgan & Co.

England Electric

y;»>«*v..-sM-.fr'-V»

For reduction

year

Commission

•**>

by competitive

determined

Southern

announced company

was

this

.

.

•^^'.»W.,W

M?i *

Halsey, Stuart & Co. Inc.; The First Boston

Jan. 30 it

of

tive

rr

115).

in

writer—Baker, Simonds & Co.. Detroit, Mich.

of

f

for outstanding

Louisiana from the Sabine River to the Gulf Coast of

Jan. 3 it

V:

cumulative preferred stock

Finance Co., Detroit, Mich.
Feb. 23 it was reported company plans to issue and sell
48,000 shares of convertible preferred stock (par $10).
Price—Expected to be about $12.50 per share.
Under¬

New

*

(par $50) first in. exchange
6% preferred stock (which is callable at
Underwriters—May be Stone & Webster Secu¬
rities Corp. and Dean Witter & Co. if exemption from
competitive bidding is obtained.

Co.

Lehmari Brothers and Riter & Co. (jointly); and Glore,

it National

—

• ■••?',

78,220 additional shares of common stock to its common
on a l-for-8 basis and 80,500 shares of new

—

writer

V"* ;v*'.V'•

V'

stockholders

plans to issue and sell
$20,000,000 of first mortgage bonds due
1986.
Proceeds—For construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey Stuart & Co. Inc.; Blyth & Co., Inc. and
The First Boston Corp. (jointly); Merrill Lynch, Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;

Co. and

(3/14)

it Missouri Pacific RR.

Feb.

was

Northern

Co. Inc.; White, Weld

Co.; Blyth & Co., Inc.; Kidder, Peabody &
Drexel & Co. (jointly); The First Boston Corp.

name

'5

«tT

Sierra Pacific

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Glore, Forgan & Co.; The First Boston Corp.; Blyth &
Co., Inc.•/ ■
//'//'■
//s

Metropolitan Edison Co.
was reported
that company is considering the
sale of additional first mortgage bonds later this year.
Underwriter—To be determined by competitive bidding.

on

•r<

include

year.

reported company plans to issue and sell
this summer $10,000,000 to
$15,000,000 of first mortgage
bonds. Underwriter—To be determined by competitive

Feb. 6 it

&

Northern

Feb. 20 it

Proceeds—To increase

Probable bidders: Hslsey, Stuart &

which

program

,

March 26.

New

• '

derwriter—If

may
cost approximately
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Kuhn, Loeb & Co. and Union Securities
Corp. (jointly); Morgan Stanley & Co.; The First Bos¬
ton Corp.
;■ i-v:.:'/ v:

51

page

$62,000,000 this

Jan. 3 it

*"•

T/te Commercial and Financial Chronicle

(1100)

Feb. 27 it

i

v

*

going-ahead with prospective new
lines since

business along normal

the/cloud

ing

over

which has

been

hang-s¬

the political atmosphere

since

last

lifted,

„

September
,

finally
,

ha$
w

»

Volume

183

Number

Continued

5512

The Commercial and Financial Chronicle

...

(1101)

required to

are

from first page

rule

Interest Rate Tiend in 1956

of

our

Beyond

•

months,
second

usual.

And for the

Long-Term

the

effective.

Perhaps belatedly, but
nevertheless with some firmness,
the process of monetizing home
With a slowdown in toll road
mortgage debt was slowed down financing, the net demand for
materially and some other fi- funds on the part of state and
nancfng was undoubtedly can¬ local governments is not likely to
celled

deferred.

or

increase

last

over

to

year

any

important extent. On the other
business activity from the lows of hand,
important buyers of tax
1954 ran into short-run problems exempt bonds such as the prop¬
of physical capacity and started erty insurance companies, should
to top out from other causes as have at least as much money for
this market as last year.
If, as
(3) The flow of funds into the anticipated, state and local gov¬
The

(2)

vigorous

ernment

major thrift institutions has
tinued

to

quate,

non-bank

taken

with

the

same

continues

at

it will not

pace,

other

to meet

sources,

about

de¬

a

v

The

for

demand

funds

the

on

fotrf long-term funds which part of nonfinancial corporations

mand

has

more

when

borrowing

con¬

is showing
be an important factor in chang¬
nearly ade¬
ing the trend of interest rates,

and

grow

signs of, being

in

recovery

clearly flattened

is of

out.

the most difficult

course

to

appraise because there are so
of cir¬
many
variables.
It seems clear
mystery that
plant and
equipment ex¬
.about why the Federal Reserve
penditures by business will reach
has not been taking new steps to
record levels and that there may
.restrain credit expansion but has
Under

this

cumstances,

combination

there

is

no

be

continuation

some

in

the

relied largely upon action previ¬
build-up of both inventories and
ously initiated. Chairman Martin
receivables. Last year these cor¬
quite appropriately observed re¬
porations could finance a sub¬
cently that, while the Fed is ready
stantial fraction of their enlarged
"to lean against the wind," some¬
working capital requirements
times it is quite difficult to tell
through the Federal income tax
which way the wind is blowing.
liability
account,
since
the
This

moment

economic

of

calm

in

the

accrued

amounts

on

basis

the

of

scene

has, then, replaced excellent earnings were running
stormy period of inflationary substantially ahead of actual pay¬

the

The pace of credit

pressures.

ex¬

ments

the

to

the

In

Treasury.

pansion is slackening; the mort¬ current year, the situation will be
gage
market has become more quite different, on the assumption
orderly;
and
the
financing of that profits will level out and
economic activity will apparently current payments will exceed ac¬
require a much smaller contribu¬ cruals.
This adds up to selling
tion

from

the

banking

than did the 1955 boom.

system
If this is

accurate

an

appraisal of the out¬
how should we expect in¬

look,

of

government securities by cor¬
This demand for
seems

firm

should

picture

ness

even

if the busi¬

fade

some¬

terest rates to behave during the

what

coming year?

Certainly the behavior of
the business loan statistics sup¬

ease

Are they going to

materially?

long?

If

for

so,

how

the

field

of

real

coming

the

.

estate

fi¬

nance, we should observe that the

and local

prime

for

in 1955's persistently
interest rate pattern has

mover

the

government outlays, and
operations of nonfinan¬

of

sult

debt repayments may re¬
either
no
appreciable

in

change
the

or

net

modest reduction

a

demand

money.

The

toward

the

terms

.

will

balance

mortgage
of

lenders

renewed

easing
important, but

be

seems

look

;must
we

it

for

attitude

in

to

of
011

that

me

elsewherq. in

we

the cap¬

ital markets.
Consumer installment credit in¬
last

mately $5y2
part of the

by approxi¬
billion largely as a
year

of

process

record

volume

1955.

Repayments

of

not

a

selling

automobiles

will

ex¬

ness

should

perhaps

be

more.

make this the

for an important further
decline in interest rates. Thus, I
conclude that the rally in the

ing in the money and capital
markets, partly a seasonal phe¬
nomenon.
I have no confidence
in the notion that it will develop
into

automobile

busi¬

down

by 10% or
The volume of in¬

stallment

credit
outstanding,
therefore, is likely to show only a

nominal increase this year, so that
there will be nothing like the

protracted advance in bond

a

prices.

Prospects for Later in the Year

in

sharply this year, and credit
the

a

It
in

setting

If

Day

could have another Dean's

we

in

up

in

necessity.
real decline
of

matter

take

would

long-term

the

into

matter of choice, but

business activity to

a

be

tensions

as

a

if bond market early this year re¬
vig¬ flected a modest 'temporary eas¬

orous demand for funds which

creased

as

1956

want to find the kind of

/will maintain tightness in

entrant

an

market

which

aboi;t

three

months, at

review

couid

I

and

per¬

haps revise my appraisal of the
outlook, I should be quite con¬
tent with the statement that we
are

in

now

period of reduced

a

tension in the money and

capital

should lead to a
in bond prices.
however,
recog¬
-markets which were evident in Unfortunately,
nition of the sterling qualities and
J the
recent past.
It is true that
the structure of rates has been devoted service of our business
6chool
administrators
has
not
fairly encouraging to long-term
borrowing by sales finance and reached the mature development
small loan companies, but a major which
would
make
quarterly
(pressures on the money or

capital

which

markets
modest

advance

•

portion of this demand for funds
would

appear

to

be

behind

Remembering how important

us.

new

security issues by these borrow¬
ers were

in the late

in stimulating
est

rates,

special

we

spring of 1953

that rise in inter¬

should, I think,

attention

to

this

pay

element




conferences

homecoming
sary

clamorous and
demand. Doubting that

meet

to

insistent
I

be

shall

statement
pears
a

a

able

to

amend

second

my

later, therefore, it ap¬

that I shall have to

out the

neces¬

one

in

order

to

Whether
six

The

usual

is

to

predict

the

trend

the

before

year

The restoration

of

ap¬

expect

when

looking
few years. Simi¬

a

am

trend in interest rate's and that
are

concerned

primarily with

lical movements.
that

much
to

real

I

am

cyc¬

at

all

this

on

To clarify the issue

individual

collective

or

reputations,

I would expect' the
long-term interest rates
five years from now to be within
the range of the 1954-1955 ex¬
level

reason¬

ably good order to the mortgage
market
could
be
upset by the

of

tremes, the precise point depend¬
ing upon whether we are in a pe¬

widespread adoption of more lib¬
eral lending terms land another

of boom

riod

at the

recession

or

heavy forward commit¬

particular moment of measure¬
ments.
'' .7/. ment.
Barring war, I would not
(4) Perhaps we are underesti¬ expect rates to fluctuate outside
mating the corporate demand for of this range unless we embark
wave

With

funds.

booming capital ex¬

upon

tax

a

could

payments

greatly

In

spending, particularly on durable
goods, could quickly destroy the
present picture of a comparatively
for funds

demand

modest

list

certainly

is

not

look for.

an.

in the

(1) With

In

connection with

the

continued

high
migration, a-ay
housing surpluses that might ex¬
rate of net internal

ist in the West and Southwest

likely to be absorbed fairly
(2) We
marked

have

near

future.

experienced

downtrend

in

the

ily formation
18
a

and

24

age

from page 13 m

vi."
■

years

typical fam¬
between
of age. This is

result of the low birth rates that

prevailed in the 30's.
has

reached

from

its

now

This trend

lowest

point and

there

on

will

'r;';-i'f;

h'MC

71tl

-Mp,

.•

increase in the rate of family for¬
mation and hence in a steady in¬

the

in

crease

demand

housing from this
that

25%

of people
dissatisfied

is not likely

to evaporate

changes in the shortoutlook for sales and profits.

run

mild

out that
different
that which existed in 1929
is

situation

from

in at least two

very

important respects.
ratio of existing

At that time the

total out¬
higher than it is
potential capacity was

plant and eqyipment to
put was much
and

now

above the level of current

demand

than is
Secondly, the popula¬
birth rate trend
in 1929 was such that the supplydemand relationship was the re¬

to

much greater extent

a

true

today.

tion structure and

we

have

The outlook in 1929 was for

now.
a

situation

the

of

verse

greater rate of increase in the
than

size of the active age groups

population.
The
problem then was "Where is the
increase in demand going to come
the

for

from, to

total

absorb

already over-

an

large and rapidly growing capac¬

ity

to

that

We adjusted to
painfully in¬
of our plant and hu¬

supply?"

situation

deed.

Part

very

capacity became unemployed
and stayed unemployed.

man

Today the question is "Where
is the supply going to come from
to match the rate at which de¬
mand is likely to
ical

answer

equipment.

is

If

grow?" The log¬
more
plant and

we

remember that

about 60% of today's level of cor¬

porate capital expenditures serve

maintain

existing

to

piece

pacity,

the outlook for the very

high

levels

of

tures

seems

are

with

their

Over

and

owners

planned

ca¬

expendi¬

40% of

over

renters want

living quarters that
larger, or better, or

either

are

located somewhere else.

portantly, about 20%
units

sumer

Most im¬

of all

con¬

planning to do
something about their dissatisfac¬
tion either by
buying or moving.
were

Adjustments

in

designed

stimulate

to

ing market

credit

conditions

the

hous¬

likely to produce

are

tangible

results in such an en¬
vironment. Taking all factors to¬

gether, the outlook is for expendi¬
tures

of

around

residential

$15V2

billion for

construction

of

tensions.
credit

even

The outlook for consumer pur¬
of

other du¬

housing and

rable goods

is for

declining vol¬

a

granted

higher level,

a

If;

of demand in 1956.

the

at

terms

are

re¬

,

greater

fourth

time,

same

re¬

extensions to an
extent.
Both phe¬

occurred

nomena

third

lag

ex¬

lengthened,

■

Purchases

Consumer

Now when

credit

new

rapidly to

payments

ume

In

payments tend to lag behind

'V"

chases

1955.

their net short-term bor¬

rate

rises

wholly justi-

be

to

fied.

pointed

be

should

It
the

;

facilities.

housing

of

new

showstill ba¬

surveys

lot

a

sically
present

for

source.

(3) Consumer

creased

The Business Outlook—1956
it

a

in the size of the 18-24 age group.
This in turn should result in an

the

ana

be

strong, steady and prolonged rise

rowing by $6 billion.

with

a

group

quarter of

.?->U

Continued

„■

num¬

ber of females in the

order to purchase at this unex¬
pectedly high rate, consumers in¬

i-'.i-'.y,

..

are

rap-

course,

extended eas¬

question

the

backlog of unsatis¬

demand.

in
1956,
only that I am looking at about $1 billion below the 1955
the prospects for the near future level.
against an assumed lack of any
Consumer investment in auto¬
pronounced long-term trend in mobiles and other durables has
rates. A different view of the sec¬ also
begun to decline since reach¬
ular trend would obviously alter
ing a record level of $37 billion
the expectations of the observer. in the third

ex¬

ing in rates or that we should as¬
sume a reversal in the trend to be
of

I

conclusion,

this

reaching

liquid assets for investment. The
significance of my views is, of

haustive, but it is enough to cast
some doubt on the notion that we
should

suf¬

ing the efficiency of our system of
thrift
institutions in
mobilizing

in the

field of consumer credit.
This

or we

hope that I am giving adequate
weight to the potential demands
for savings in the years ahead
while at the same time recogniz¬

of consumer

resurgence

the

late 1930's.

en¬

mand for external sources of funds.

A

on

orgy

fer the dismal frustrations of the

large the essentially marginal de¬
(5)

speculative

a

scale of the late 1920's

renewal of inventory
accumulation while meeting heavy
penditures,

no¬

we

than will be of service

more

our

not

colleagues

my

panel agree.

This

simply

full 12 months which we

represent

subscribing to the notion
that there is no important secular

relaxation of credit restraints.

of

I

7

operating
this close to capacity, inflationary
any

on

policy. It is
cyclical peaks

during 1954 as a reasonable
facsimile of the low points to be
anticipated.
>'
:

are

suggests the dangers in

thinking

our

significant

rates

sure

close at hand.

areas,

West and Southwest,
areas like Chicago still have

many

larly, I would take the minimum

ture programs.

(3)

should

down the road

plant and equipment expendi¬

are

some

the

underlying demand, the following
factors are worth noting:

we

evidence to support
the expectation of an important
downturn accompanied by inven¬
tory liquidation and cancellations

pressures

tably
a

proximately the high points which

no

we

in

extent

some

fied

my view that these
in
interest rates

miliar winds.

When

created by

stimu¬

characteristic of

interest rates and the displacement
of the present calm
by some fa¬

(2)

interest

matters of economic

is
five
reasons why it is plausible to look
for a return to an upward push in

of

in

pressures,
and the
lack of national self-discipline so

I should like to suggest

(1) I see

peaks
cyclical tops

should

still basically strong, and while
overbuilding has taken place to
is

inflationary

range of fluctua¬
tions quite narrow. I just wonder

over.

as

1955

this

and

late^demand. Underlying -demand

the coincidence of business
booms,

whether this is any more probable
than that we will have a reversal
in

and

rates

by assuming in

develop
to

1953

the

with

pace

removed
this

is

tightness in the cap¬
ital markets late this
year, I think
we
shall come to recognize the

under

recourse

there

not

or

resurgence of

I must confess that my
sight is more foggy than

of the same

rising
cial corporations. Only consumer
apparently settled down to a credit looks like a materially less
highly satisfactory level of great aggressive competitor for funds.
prosperity.
The increasing vol¬ The Federal Government may be
ume

y

case

out

balance, then, we can see
a well sustained demand for funds
for real estate financing, for state
On

The Near-Term Outlook
In

during

ports this view.

;

,.

more

weeks.

:

three

next

The Longer-Term Outlook

by the stern

that the easing in inter¬
est rates will continue at a modest
this

porate holders.
funds

the

circumstances

more

in the outlook for the demand for
funds.

cover

moderator. !

r

53

quarter

between

of

quarter of

1954

the
the

Since

1955.

and

this

time, the level of new extensions
has stopped rising and the length¬

1955, housing starts
of
maturities
has
also
at an annual rate ening
of over 1,400,000.
This rate de¬ ceased. When this happens, the
level of repayments keeps
clined steadily through 1955 and
rising
until it once more catches up with
is now somewhat below 1,200,000
In January,

running

were

Requests for Veterans
appraisals
and
applications for FHA
also declined since the

per annum.

Administration

mortgage
loans have

of

spring

housing
construction
tend to follow the trend of new
starts with

a

what

in

new

we

1956.

are

extensions.

short lag.

These ex¬

This

going to witness

The stimulus

we

had

in

1955 because consumers were bor¬

Actual expendi¬ rowing faster than they

1955.

for

tures

exceeds

or

is

were

re¬

paying is going to diminish and
finally disappear by about the
third

quarter

of

1956.

By

this

peak rate time, consumers will be Repaying
old debts at least as fast as they
of over $17 billion in July, August
incur new ones.
The net effect
and September.
Since that time
reached

penditures

the trend has been

a

downward and

of

this

shift

will

continue downward for sev¬

will

eral

months, even if the rate of

spending

housing starts should stabilize at

present levels.
factors which

Two

set the effect of

the

are

increased

cost per
.

Be¬

of these factors the decline

cause

in dollar

the

ing

and

maturities

was

one

restraints

imposed in

factor

the demand for

These

bulk

of

the

impact

Now $3
matter
even

if

in
we

billion is
a

new

have

reduc¬

homes.

now

been

$3

billion

jm

Most of this

on

the auto¬

should

we

$30

an

important

billion

market

do not take secondary

repercussions

starts is

factor

consumer

mobile market.

should not be

likely to continue much below
levels.
The tightening of

credit

about

1956 relative to 1955.

decline in units started.

current

mid-1955

by

the credit

reduce

decline will be felt in the market
for consumer durables, with the

expenditures will be less

The decline in housing
not

larger

toward

foot of construction.

square

than

the

tend to off¬

decline in starts

tendency

and

units

a

in

itself

in

into

account.

It

ignored. But neither

exaggerate the down¬

ward impact of the disappearance
of the credit stimulus. Even when
we

net

subtract The entire effect that
credit

extension

Continued

has
on

had

in

page

54

54

The Commercial and Financial Chronicle

(1102)

A

11

—1_

tflDC

Thp mWlllvM UUllOOK
KllCinPSS

1j3D

<m'

mi
"

■

-

-

■

w

—'

.

■

—

.

bri

we

■

L

,

f

other

»

industries

.

-

...

that

are

and other industries that are at
.....
.
...
,
.
f
quarter
since 1953, we find that consum- fected by the forthcoming rise in
?»s le ' "yers
have been spending on the minimum
wage rates from 75 to quarier. (
average about 11% of their dis- cents to $1.
Some of the plans
Federal reserve ^.d
y
posable income on durable goods. are based on a need for the higher will probably move in_the direcIf this continues, and there is no level of stock required to
pro- tion of somewhat easier condrreason
to believe that it won't, vide
smooth operations at the tions. The threat of mflafaon that
the demand
for consumer du- higher level of sales now being was presents last December has
rabies in
1956'will be around achieved.On-account of these clearly subsided. Credit demands
the

market

durables

consumer

.

incurred in late 1954 and 1955:
and repayment .rates should de¬

~~

stabilized at around
servative ]evel of neW credu
ten3ions
surner,.

Abo(Jt this Ume the

c;urables

s

^Da^a'J™
« no evidenc. of t e

sales is not expected to'increase,

personal saving. Dur- and this is a limiting factor on
ing the first three quarters of 1955 how far voluntary accumulation
thl rate of saving averaged only of stocks is likely to go. A con6% of disposable income. In con- servative estimate would be for
trast, the average saving rate for accumulation to continue at a dethe period
1951-1953 was nearly cijn}ng rate and to become neglirate of

low

appearance*of
appearance

the sav¬

nn_

finnl

°h"n£!,"aJghnw
and how

wiT. feeTntfrwill the "inter-

when

mission>" as 1 have called

by tne end of the

(1)

and

last

the

to

1955

accumulation

(Estimated)

business

has

been

During the last quarter of

factor.

(2)

1955, inventories were being built
at

in

creases

automobile

of

stocks

dealer

industry

ventories

level.

(3)

some

25.5

Goods

(4)

purchases, .of

:

sectors

0.3

0

0

•

16.2

*16.6

purchases

of

Y

of

stocks.

Some

of

mitted

35.0

are

based

upon

an

125.9

129.0

131.0

91.1

93.5

5.0

$387.4

about $3

j

;•
ft

$276.9

One

OF

$1,000. BEARING

6316

8307

12098

10451

Mass.

has

—

been

the

New York

and

Exchanges.

to

COMPANY

»

dividend 1

a

($1.00)

\

per

its

capital stock of
the par value of $50 per share, '
payable March 29, 1956, ;
stockholders

to

of

record

at

'

on

•

Broadway, New York 4, N. Y.

-

the1 close
March 6,

Clarence

added

Dollar

on

of

business

1956.

■

C. EARLE MORAN

M.

Secretary and Treasurer

the

25

Boston

Stock

v

NOTICES

CORPORATION

12543

15442

19042

M

A dividend

.

CORPORATION

20662

($.25)

the

60c

of

*

twenty-five

cents

share has been declared

the stock of Burroughs
Corporation, payable April 20,
1956, to shareholders of record

upon

Detroit

Michigan
per

payable

close

a

of

23, Michigan

DIVIDEND

No.

72

the close

share

March

business

corporation,
on

23,
on

the

declared

Common

1956

to

March

shares

a

of

V

;

Sheldon F. Hall,

quarterly

Detroit, Mich.

of the Cor¬

shareholders

16,

of business March

31, 1956.

Feb. 27,1956

record

,

Vice President

and Secretary

1S56.

22495

19051

at

of

a

CA§FI

DIVIDEND

February 14, 1956, the board of directors of Allied Products

dividend

^

20557

225th CONSECUTIVE

at
On

,

Corporation,

LETTER

NOTICE

ALLIED PRODUCTS

/lLLlEb\

poration,

THE DISTINGUISHING

10440

Ex¬

.

30 State Street, members of

COMMON

bearing the following distinctive numbers, to wit:
3629

Stock

staff of Townsend, Dabney & Ty¬

$282.0

-

|

Refunding Mortgage, dated August 1,1921,
supplemental Indenture, dated as of April 1, 1948.

BONDS

Midwest

BOSTON,

IT

$223,000 principal amount of said First and Refunding Mortgage
8%% Bonds, Series H, due April 1, 2003,

1795

February 23, 1956

The Board of Directors of

■-

of

and

(Special to The Financial Chronicle)

billion.

1, 2003

Trustee, has drawn by lot for redemption on April 1, 1956, at the redemption price,
viz.: 101%% nf the principal amount thereof,

COUPON

will be ad¬

1

DIVIDEND NO. 191

-

share

$400.0

$397.4

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the above-men¬
tioned supplemental Indenture, United States Trust Company of New York, as !

65

AnacondA,

H.

to

DIVIDEND

Company

Issued under First and
and

f

ANACONDA

DIVIDEND

Refunding Mortgage 33/4% Bonds, Series H,
April

'

today declared

of

Louisville and Nashville Railroad
Due

Treasurer

f

To the Holders and Registered Owners

First and

March

on

Harvey

—

With Townsend, Dabney

t

REDEMPTION NOTICE

Peterson,

,

has

2.5

$269.2

of

111.

changes.

third quarter, 1955, of $17.2 and $37.0 billion.

•(■Assuming tax reduction in last half

REDEMPTION NOTICE

Walter A.
.

February 24, 1956

was

96.0

3.3

Disposable Incomef

♦Reached peaks in

Chamberlain

&

Kimball

antici¬

Record March 5, 1956

of

THE

Ellis

Nondu¬

Total sales of Gross National Product

pation of higher prices in textile

Payable Ma-ch 22,. 1956

•

F.

per

,

partnership in Blunt
Simmons^ 208 South La
Salle Street, members of the New

32.5

son,

plans

Richard

Manager

—

now

office
of
Nesbitt;
Co., Inc., 149 Federal

'CHICAGO,

15.5

Inventories—

Personal

.j

York

*35.3

Inventory accumulation

these

Regular quarterly of 63*
share

iloAdmit H. H. Orndorff

planning further increases in the
level

is

Mr.

Orndorff

purchases of-Durable
,jl

Consumer purchases of services,

are

Y.;;

;

-

Blunt Ellis Simnons

26.5

•;

goods

rable Goods

(5)

Corporation

Street, New York 5, N.

pur¬

Consumption—
Consumer

.sales is still conservative. Surveys
that

23.8

Equipment
t_-

foreign

Consumer

about 10% above peak 1953 levels,
so
that the ratio of inventory to

indicate

Atlas
33 Pine

previously with A. E. Ames & Co.;
Incorporated.

Consumer Investment'Sector—

increased,

has

16.5

purchases

Nonfarm residential construction

inventories have only re¬
cently
returned
to
peak
1953
levels.
In the interim, the rate
sales

16.2

Boston

Street.

pre¬

In the other sectors of the econ¬

business

15.8

$47.0

Thomson &

and services

omy,

of

32.5

Net

further rise in these in¬
beyond
the
present
'

vent any

31.0

chases

new

should

the

30.1

Machinery and

in the

cutbacks

Production

cars.

$46.0

$45.8

Business Investment Sector—

a

Mass.

Chamberlain

purchases

Plant and Construction

rate of about $5 billion.
About $1.5 billion of this was in¬
up

closed.

Secretary

February 28, 1956

•

BOSTON,

Government:

purchases of goods and services

stimulating

a

(Projected)

State

by

to holders
on Martjh

1956

1,

CARL A. SUNDBERG-

■

Mgr. for Nesbitt

U>5G '

of goods and services
i_
and
Local /Government:

through

All

demand.

inventory

>'

4th Qr. Rate

Government Sector—
Federal

most troublesome of our sectors-

inventory

>

April

the .clcse of business

at

1956. Transfer books will not be

12,

•

1955

(Estimated)
now

record

cf

end?

1955

come

year.

payable

dfec'ared,

(Billions of Dollars)

Inventories
We

income. Under

added stimulus gross national
production will start rising again

thrnnffh"'

t>~

nnrl

p..™

Dividends of one dollar seventy five cents
($1.75) per share on the Preferred Stock and
twenty five cents (25<r) per share on tbe
Common Stock of this Company have been

NATIONAL PRODUCT

GROSS

ing rate to the more normal level
of 8%. :r

for strone

^ernment and
-UPP°";R»°mlevel of disposable

Sible after the middle °* the

net consumer bor-

again push

rowing will

simultaneous

V

Common Dividend No. 127

of

be

tensions will once again run
ahead of repayments> anl con.
sumers wl11 again-be spending
over 92% o£ their now hiSher

nf

k;nH

New York 8, N. Y.

: Preferred Dividend Ne. 191

.

^

CQn_

market .will

i*

v

subjected to-'the' stimulation of
new models from Detroit and will

factors,

-

extremely

resulted in an

1955

in

Mr.-

INCORPORATED
Church Street,

30

iQme

inventory accumulation have, eased, overtime is no longer
Taking consumer spending as a will continue for some time.
. ■ as
wid^pread and demand-in- nQ doubt be persuaded to new
whole, the liberal use of net credit
However, the over-all level of ^uced Pressures _on Pnc®|
a
extensions of credit. These exbillion.

ALCO PRODUCTS

sumers should have repaid a good
part of the instalment debt they;

^

$32>6

NOTICES

di-

the

together

Thursday, March 1, 1956

.

DIVIDEND

If we can assume that inventory
accumulation .is moderate in fee
vergent movements we have sur- next six; months, a resumption of
• ; veyed, the over-all outlook is for a n»™al rate of growth in GNP
a gross national product of-around
should begin in t.ie last quarter
af- $400 billion in 1956, and for sta- °f the y®ar:
this time conSummary

Cnnfirtnetl from rrnttp 53
Continued pom/page 0

.

.

22778

227

1936

3808

6342

8312

240

2449

3932

6373

8718

10654

19154

20706

371

2588

4052

6674

8771

10726

12835

15871

19185

20780

23427

445

2625

4413

6675

8805

11078

12916

15943

19187

21119

23495

486

2790

4490

6716

8953

11155

13224

16080

19211

21133

24070

15460

12607

15664

23343

511

2861

4492

6748

9177

11232

13314

16105

19263

21160

24078

633

2895

4689

7136

9612

11282

13462

17630

19264

21745

24111

965

2923

4806

7274

9723

11554

13647

18219

19498

"

1019

30*5

4828

7291

9946

11611

13688

18220

19575

,

1069

3136

5309

7300

1C014

11624

13894

18282

20161

1088

3146

5329

14523

18297

20192

21870

1338

3180

5493

7454

10351

11959

14538

18420

20367

21980

1363

3280

6093

7533

10433

11983

14650

18526

20411

22053

1443

3464

6115

7733

10434

12088

14702

18857

20459

22105

7308

10044

11809

21793'

24212

2182S
21844

•

BONDS IN FULLY REGISTERED FORM WITHOUT COUPONS
Amount

Numbers
R

4

R

25

R

91

R112

Denomination
$125,000
10,000
10,000
216,000

*

Amount

Called

Numbers
R131

$11,000
1,000
2,000
20,000

R133
R135

Denomination

$485,000
90,000
99,000

.

CaUed

MACHINE AND

$17,000
12,000
1,000
r

METALS, INC.

All Coupon Bonds

bearing the serial numbers above specified will be redeemed
redemption price of 101%% of the prin¬
cipal amajint thereof, at the office of Louisville and Nashville Railroad Company,
Room 900; 71 Broadway,
Borough of Manhattan, City and State of New York, upon
and paid on and after ftpril 1, 1956, at the

?

presentation and surrender of such Coupon Bonds with October 1, 1956 and all
subsequent coupons attached. Coupons due April 1, 1956, should be detached and
collected in the usual manner.
The principal amount drawn

redemption

Dated: February 10, 1956.




as

new

Registered

aforesaid.

AND

NASHVILLE

FIFTY

RAILROAD

COMPANY'

By: W. J. McDONALD, Vice-President.

CENTS

DIVIDEND
per

declared-

sha:e

for

the

has

been

first

quarter-of 1956^ payable

on

206th PREFERRED DIVIDEND. A

quarterly dividend of lVz% ($1.50

holders
15,

a

share) has been declared

upon

the Preferred Stock of The American

Tobacco Company, payable in cash

on

April 2, 1956,

to stockholders

record at the close of business March 9, 1956. Checks

February 28, 1956.

of '

will be mailed.

Harry L. Hilyard, Treasurer

r

March 31, 1956, to share-

Registered

Registered Bonds must be accompanied by instruments of assignment and trans¬
fer duly executed in blank, with signatures
guaranteed.
>
From and after such redemption date, no interest shall accrue
upon or in respect
of any such Bonds called for

LOUISVILLE

QUARTERLY

of

;

for redemption of the Registered Bonds without
coupons bearing the serial numbers above specified will be redeemed and
paid on
and after April 1, 1956, at the
redemption price of 101%% of the principal amount
thereof, at the aforesaid office of Louisville and Nashville Railroad Company, upon
presentation and surrender of such Bonds. The registered holder of a
Bond surrendered for redemption in part will in due course receive
Bonds without coupons for the unredeemed portion.

49th Dividsnd

A

of

1956.

record
"

on

Marcb ..."

Volume. 183

Number 5512

.

..

DIVIDEND

NOTICES

rMVirtR-MO

NOTICES

DIVIDEND

(1103)

The.Commercial and Financial Chronicle

.

NOTICES

GEORGE

Newmont Mining

E. L DU PONTDE NEMOURS & COMPANY

3

Corporation
On

February 28th, 1956 the Directors of
Mining Corporation declared a
dividend »f Fifty Cents ($.50) per share
on the 2,658,230 shares of its
Capital Stock
now
outstanding, payable March 15th, 1956

l.vV
<'

#;.

•..

•»

Newmont

i

^

Wilmington, DaL, February 20, 1956

Corporation
~

The

DiVIDEND No. 85

dividend

(25c)

stock

the

on

cf

this

March

on

twenty-five

cents

share

outstanding

Corporation,

common

payable

10,

1956;

Common

on

the

at

terim

1956,
close

BERGEN,

a

share

New York, N. Y.,

of

at

the

close

WAGNER BAKING
CORPORATION

Secretary

McCAULEY,

P.

J.

of

February 28th, 1956.v

COMPANY

business

February

on

'

,

-

New

at

28,
'

International Salt

?

P. S. du PONT, 3rd, Secretary

;

v.

A dividend
a

167;

declared

of ONE DOLLAR

share has been declared

on

the

capital stock of this Company,

BRICGS & STRATTON

ALLEN B.iDU MONT

payable April 2, 1956, to stock¬

on

business

,INC,

on

March 15,i 1956.

The

March 9,

The Board of Directors of Allen

B;

[BRlGCS&r STRATTON]

Du

this
of

Mont Laboratories,
a

perr|share

Hervey

its out¬

1956.
Secretary

r

Betsch,

Secretary and Treasurer

will not be closed.

dividend

on

day has declared
$.25

Inc.

16,

STEVEN3,

1956.

B. M.

stock transfer books of the Com¬
pany

February 23, 1956.

J. Oseorn

Exec. Vice Pres. & Sec'y.

h

standing shares of 5% Cumula¬
tive Convertible Preferred Stock,

DIVIDEND
Th2

share

value)

Directors

dividend

quarterly
per

of

Board

declared

has

a

the close of business March 15,
1956. '
•: • /„/

(90c)

cents

ninety

payable

Corporation,

the

I

1956 to Pre¬
ferred Stockholders of record at

the capital stock (without par

cn

of

of

%

payable April

stockholders

to

1956,

record

of

March

'j"

1956.

2,

1%

February 23,1956

L. G.

February

One Wall Street,

REGNE3, Secretary-Treasurer.

New York

PI,

February 23,1956

1956

The Board of Directors has this

declared

day

In All Phases [of Television

dend
the

COMPANY LIMITED

TOBACCO

of 40

NOTICE

TO

DIVIDENDS

OF

HOLDERS

V/ARRANTS

TO

The first interim dividend

Stock

nary

the

for

share

on

$10, payable April 2,

par

the

March

of business

close

share

a

ferred

stock,

have

payable

clared,

|

56th Consecutive Regular

*

Quarterly Dividend of
One Dollar ($1.00) per Share

the

1

$5.00 Par Value Common Stock

pre¬

Forty Cents (40£) per Share

de¬

been

April

on

|

on

on

second

$4.00 convertible

2,

Declared—Feb. 23,1956

1956, to stockholders of record
at the

Record Date—Mar.

close of business March

16,1956
A. R. Cahill

Carl M.

30th

1956

1956

Payment Date—Mar. 30,

9, 1956.

RALPH B. PLAGER, Secretary

of sixpence for each
10/— of Ordinary Stock (free of United
Kingdom Income Tax) will be payable

September

|

4% Cumulative Preferred Stock

cumulative preferred

stock, and $1.00

2, 1956.

the Ordi¬

ending

year

at

BEARER
on

per

the $3.50

1956, to stockholders of record

OF ORDINARY AND PREFERENCE

STOCK

quarterly divi¬

a

cents

capital stock of this Com¬

pany,

•

share

a

BRITISH-AMERICAN

Chicago 6

QUARTERLY DIVIDENDS

Quarterly dividends

MERCKjl of 20<£ a share on
kHF If16 common stock,

Wis.

Milwaukee,

|

20 North Wacker Drive,

I

Company

-Treasurer

.

|

& CHEMICAL CORPORATION

RA1IWAY, N. J.

1

15.

INTERNATIONAL MINERALS

MERCK & CO, Inc.

Irving Trust

Stanley F. Patten

March

1,

of

record at the close of business

holders of record at the close of

CORPORATION

March
V.

J.

.

divi-

stockholders

to

record

quarterly dividend
of thirty-one and one-quarter
cents (31!/4(0 per share on the
Common Stock, payable March
30, 1956, to shareholders of
a

Both

Stock.

payable April

dends

1956,

The Board of Directors has
DIVIDEND NO.

i

dividend of $1.75
per share, on the
7% Pre¬
ferred Stock, also a dividend
of 5 cents per share on the
Common

'

Notice of Dividend

company

;

York, N.-Y,

regular

the

declared

quarterly

ELECTRIC BOND AND SHARE

in¬

stockholders of record

Directors

of

Board

The
has

.

J

close oi

March

the

on

Secretary.

February 27, 1956.

record

at the

stockholders of record
12, 1956.

to

WILLIAM T. SMITH, Treasurer

April

on

the first quarterly

q$

■' ;

1956.

R.

pay¬

business

of

956,

business

for J956, payable March

to
of

both

stockholders

to

43%

business March 7th, 1956.

Pre¬

stockholders

to

also;v$t,50

Stock

the

on

Series,

close of

dividend

14,

7, 1956.
A.

this

Stock—$4.50

share

a

Stock—$3.50

the

*•

Has declared

Preferred

87Vit

April 25, .1956,

record

30, 1956, to stockholders

the

on

and

ferred
able

cf record at the close of business
March

Series

share has today been de¬

per

clared

of

Directors

day regular quarterly dividends of $1.12y2
a

A

Board of

N. Y.

February 29, 1956, a quarterly dividend
cents per share on the Preferred Stock
and a dividend
of 40 cents per share on the
Dommcn Stock were declared, payable April 2,
On

Df

Dividend No. 112

COMMERCIAL SOLVENTS^

Plaza, New York 20,

Rockefeller

NOTICES

COMPANY

HELME

W.

DIVIDEND

NOTICES

DIVIDEND

I

55

Anderson,

Secre'ar7

February 28, 1956

Vice President and Treasurer

•

phosphate* potash• plant foods• chemicals
industrial minerals • amino products

the 29th March 1956.

on

Holders of Bearer Stock, to

obtain this

dividend, must deposit Coupon No. 225
with

the

New

E.C.3,- for

also

•

I CORPORATION OF AMERICA
180 Madiion

(excluding Saturday) before
dividend

of

The
the

ending 30th September next will
be payable on the 29th March 1956.

.

March 9,

current

of record

the issued

Ordinary Stock for the

corporation

the

close

a
,

per

this

share

on

Directors has

A

7,

of

the

on

this

61

of

outstanding

March
at

record

March

16,

of

$.40

been

per

Stock

Common

has

Corporation

payable

John G. Greenburgh
Broadway
Treasurer.

dividend

cash

quarterly

share

declared

1958

to

stockholders

close

of

business

31,
the

on

1956.
DONALD A.

New York 6, N. Y.

HENDERSON,
Treasurer.

R. L. Tollett,
President

February 28, 1956.*|

February 22,1956

sanctioned at the Annua'
General Meeting to be held on the 13th

I April

next)

•

rants

must

'

or

on

holders

next

of

ItOBERTSHAW-FULTON

after the 31st May

Ordinary

Stock

War-

CONTROLS COMPANY

deposit Coupon No. 226 with

CONTINENTAL

Company of New
York, 32, Lombard Street, London, E.C.3,
five clear business days (excluding Sat¬
the

FOX FILM CORPORATION

the

at

being

same

•

TWENTIETH CENTURY-

declared

1956.

business March 14,1956.

Secretary

/j

fifty (50c)

was

close of business March

the common stock of
payable March 29,
1956, to stockholders of
record at the close of

ciR. O. GILBERT

10/— of Ordinary Stock (free
of United Kingdom Income Tax).
To obtain this dividend (subject to the

for each

share

stockholders of record

Company,

12>£ cents per share payable March
26, 1956, to holders of record at the
close of business/March 9, 1956.

year

NOTICE

declared
regular quarterly dividend of 37

The Board of

of business

1956,

per

payable March 29, 1956, to
DIVIDEND

COMMON, STOCK

September 1955 of ninepence

cents

quarter

at

March 9,

to

ended 30th

petroleum

the close of busi¬

quarterly dividend for
of $1.75 per share,
payable April""!, 1956, to holders
the

the payment, on the
May 1956, of a final dividend on

February 23, 1956
A dividend of

7% SECOND PREFERRED STOCK

Stockholders

31st

at

1956,

The regular

made.

recommended

COSDEN

regular quarterly dividend for
quarter of
per
payable April 1, 1956, to

holders of record

(excluding Saturday) before payment is
have

CORPORATION

current

ness

Savoy Court, Strand, London,. W.C.2, for
five clear business clays

Directors

corpowwom

TENNESSEE

share,

examination

The

iunnissu

4VZ % PREFERRED STOCK, SERIES A

the 5% Preference Stock (less
Kingdom Income Tax) for the

Coupon No. 105 must be deposited with
the National Provincial Bank Limited,

,the

j

Avenue, New York 16, N. Y. J

THE Boardthe; Directors has'thisday
of following dividends:
declared

on

United
year

of

five clear busi¬

payment is made.
The
usual
half-yearly

2*/2%

•

examination

days

ness

,

Company

Trust

Guaranty

York, 32 Lombard Street, London,

Trust

Guaranty

urday) before payment can be made.
DATED the 24th February, 1956.
BY

ORDER OF THE BOARD
A. D.

I

~.

I
.

McCORMICK,

a

A

quarterly dividend

close of business

par

on

value 5j^ percent

vertible

„

may

be entitled by

to

of the Double
Taxation
Treaty
between the United
States, and the United Kingdom, to a tax
credit under Section 901 of the United
States Internal Revenue Code can by
of Article XIII(l)

holders of record

stock

at

March

the close of

payable

f

such

(§)

20

MR.

CONTROLS

record

at

the

be closed.

close

of

a

(17Vic)

cent3

the

Common

Common

payable March 20, 1956 to
stockholders of record
at the close of
9,

dividend
one-half

and
per

share

Stock

on

and

a

regular quarterly dividend of

share

Stock

March

J
de¬

Directors

quarterly

seventeen

twenty-five
STOCK

regular quarterly dividend of 37%c per

business

WILLIAM FISHER

clared

of

1956.

COMMON

share has been declared on the

not

Board

The

of

of business March 9,

A

books will

1 956

,

stockholders

to

lusiness

16, 1956,

The stock transfer

application to Guaranty Trust Company
of New York obtain certificates giving

1956.

The

transfer

books will not be closed.

on

(25c)

cents

the Preferred

per

Stock

of this corporation,

both

March

1956,

to

stockholders of record at

the

able

close

of

26,

business

pay¬

March 15,

TREASURER.

-particulars of rates of United Kingdom
Income Tax appropriate to all the above

WALTER

February 21, 1956

J

H. STEFFLER

Secretary 8c Treasurer

February 17,1956

^.mentioned dividends.




a

DIVIDEND NOTICE

Preferred

Stock,

Common Dividend No. 44

regular quarterly
dividend, fot the first quarter of the year 1956, of 50^ per share
on
the. qjiistanding Common Stock, payable April
1956,

CONSTRUCTION C0JHC.

the $25.00

Cumulative Con¬

March 16, 1956.

has declared this day

TISHMAN REALTY &

share has been de¬

clared

March

London, S.W.I.

quarterly

regular

per

on

The Board of Directors

7, Millbank,

STOCK

dividend of $0.34375

SECRETARY.

Westminster House,

Stockholders who

declared this day

the outstanding $5.50 dividend Preferred
Stock, payable April 1, 1956, to stockholders of record at the

$1.37j^jJbr share

-

virtue

Greensburg, Pa.
PREFERRED

Preferred Dividend No. 69

The Board of Directors has

of
_

BAKING COMPANY

1956.
NORMAN

TISHMAN, President

56

The Commercial and Financial Chronicle

(1104)

Y

A

Behind-the-Scene Interpretations
from the Nation'#

f\

"

j The big story is that the Re¬

/III

is going most
rapidly to be made over in the
image of the Sherman Adams,
Dwight Eisenhower mold. Dem¬

C/14/

ocrats in the South

a

jTjL II/IM/

Capital

,

publican-party

•

•

Thursday, March 1, 1956

.

quitting is not just the. story of
the loss of two beloved figures
around the Capitol.

BUSINESS BUZZ
on.

..

X

long resisted

the corrosion of their conserva-'

tive
ideas
despite
the
long'
reigns of Roosevelt and Truman,
There is

WASHINGTON, D. C.—Presi¬

Every

terrhie

in 1956 if he escapes a

squeeze on the farm bill as a
direct result of this veto of the

Senate

1956

As Senator Knowland

for the Gas bill on the

President
it.

In

their

empt

natural

tion,"

as

were

of

month

Mr. Benson think it may be im¬

large
on

implicit reflection

mean

the

for

vote

farm

areas

benefit, than to

which

would

of
and

arouse anger

for the President, if
any, looked precarious.
1; - What happens if a Senator,
for the greater interest of the
party as a whole and for the
*

fortunes of the Eisenhower Ad¬

ministration, submerges his self¬
-interest and backs the Presi¬
out

:
•

then the
and
signs

President
the farm

bill, after all but permitting the
word to go out that he would
veto

bill with 90% supports?

a

That

|

is

the

bother

will

question

Bill

; Knowland

was

saying, in effect,

"how

can

I

was

whip the boys

\ into, line to stick by the Prest;

dent if he again might
on

them?"

bill with

run

out

(And instead signs

Eisen¬

Mr.

bill

with

90%-

who

Democrats

and

under

Even

the

the 80th

Eisenhower he

Then the money will not go out
in quantity this year.

Democrats, however, believe
they will be sitting pretty with
the farmers, and Ike will reap
the

harvest of

a

the

Administration

is

large

the

farm

little

bill.

advised

to Y veto

cott's

have

the

President adopted

olent
It

controls,

"standby"

neutrality

was

who,

it

was

started

the

credit

controls.

Wolcott

even

be

hardy

a

President

cott

hallmark

as

part

neither

nor

Hope
or

gentle and
Wol¬

Messrs.
blamed

any one

Mr.

for their

who

know

certain

them,

that

however, are

their

for

reason

largely their inability

to adopt

principle of the "flexible"

As

spending

concepts

Likewise

ports.

will

it

who

Senator

hardy

of

the

sup¬

be

will

a

risk

the mandatories

only to be left out in a political
arctic

freeze

after

Finnish

a

bath.

matter of

fact, it is

prob¬
only
backed public housing on the
premise that if it passed the
Senate, Wolcott would kill it in
a

ability

the

that

House,

Bob

a

a

Taft

premise

and

the

scene

welfare

was

just because they happen to be¬
official

come

Republican

con¬

if

a

comes

bill

a

terrible decision

with

to him.

90%

supports

who

told

were

Gas

the

the

of

a

were

Gas

bill

ful if

double-cross is

one

with the "soil bank" and getting
the money out in time to buy

cott

This

the

not

vote

bribe

from




going

Co.

&

(Incorpo¬

E.

Harriman

&

& Company;
& Co., Inc.; Fi¬

Hutton

F.

Pollock

E.

Wm.

& Co.

Brothers

Brown

Union
Trust
Company,
Newark; Wood, Struthers & Co.;
A. M. Kidder & Co.; New York
delity

Eminent and useful
Wolcott

and

Hope

as

Corporation; The First
Memphis; Greg¬

Branch Banking &
Van
Alstyne,
Co.; The Ohio Company;
Kaiser & Co.; Fairman, Harris &
Company, Inc.; National Bank of
Commerce
of
Seattle; Schaffer,
Necker & Co.; Robert Winthrop
&

ory

Sons;

Trust
Noel

Company;

&

Co.

Messrs.

have

been,

however, the big story of their

TRADING MARKETS
Fashion Park

not

Indian Head Mills

is

Geo. E..Keith Co.

ele¬

get

Morgan Engineering

wonder¬

away

National Co.

with it,

more

Riverside Cement

than

once.

;

bank"

can

it seldom works

but

Wolcott Is

into operation this year.

F. S. Smithers

mis-informed, the lesson of the

probably be exactly one of ac¬
cepting the 90% supports along

and

1

Nuveen

rated); B. J. Van Ingen & Co. Inc.;
Coffin & Burr Incorporated; Heller, Bruce & Co.; Barr Brothers
& Co.; Hayden, Stone & Co.; A.
G.
Becker &
Co.
Incorporated;
Clark, Dodge & Co.; Shearson,
Hammill & Co.; Ira Haupt & Co.;
G. H. Walker & Co.; Roosevelt &
Cross Incorporated; Andrews
&
Wells, Inc.; Bacon, Whipple & Co.;

President

bill

Garl Marks

The decision will

election, or vetoing the bill
delaying thereby the "soil

John

.

the

wanted

I

1

Angeles; William R. Staats &

Co.; J. Barth & Co.; Bache & Co.;

Assuming that those Senators

ness

For the President may be con¬

fronted with

Los

&

cepts.

that

proved to be wrong, not because

quitting

mentary: In politics as in busi¬
May Not Veto

Dean Witter & Co.;
Reynolds & Co.; California Bank,

Hanseatic

quietly

loss

the

:

National Bank of

Those

the Housing Act of
1954, the
Michigander refused to back it.

risk

can

National

Los Angeles;

abandonment of public office at

farm subsidy for the sake of the

who

Portland,.

yYyYYyV Y Yyv:Y:'yY

the peak of their careers.

of

of

Bank

Seattle-First

Security-First National Bank of

Administra¬

basically

men

Eisenhower

Senator

capitulated, refused to go
along with public housing. Even
Deal

Bank.

Co.;

As

Taft

New

but

methodology

Eisenhower

tolerant,

for

Y
after

talk-economy

tion.

Presi¬

killed,

taking

the

the

of

with

convic¬

his

Secretary of the Treas¬

act-for-spending

in

the late Bob
Taft, finally killed this design.
After

as

to

ury

issue.

the

on

Wolcott

Jesse

principles could

subordinated

tions

benev¬

a

of Wolcertain fun¬

man

a
on

damental fiscal

of

iwhen the President backed that

will

It

than
integrity

more;,

any

embarrass

(to

Beane; Weeden & Co.; The
National

Oregon;

Hope's

behalf

ending

House.

(R.,

Banking

Corporation; Harris
Savings Bank; R. H.

and

First

made

been

Inc.; The

Boston

&

ner

YY

standing could
not have played second fiddle
to the White House politbureau

Democratic

getting

of

man

Bank;
City Bank of

Co.; Union Securities Corpora¬
tion; Merrill Lynch, Pierce, Fen-

farm issues.

on

offering:

&

However, that is doubtful, for a

former

Capehart

Senate

(R.,

_Y:Y;y

have

would

Repub¬
licans) for his 1953 endeavor on
support

Gas

the

Homer

the

Committee

dent

all-important timing
shortly will, however,
to dawn on the White

begin

of

Mr.

The

factor

ing,

the

partnership

has

who

Eisenhower

afraid

not yet
cute and smart

the

boys

Eisen¬

is

discontent

possibility

penetrated

veto

90% supports.)

what

hower

Ind.)

experience

much smoother

party was committed
controlled society,

publican
against

Agriculture,
Administration,
vast

the

& Company; American
Company, San Francisco;
Glore, Forgan & Co.; C. J. Devine

that if Mr.
made Secretary
the path of the
because of his
and high stand¬

of

Congress.

in

Manhattan

National

Moulton

felt

Hope had been

Repub¬

Chase

Trust

Chairman

former

have

Many

Atlhough the Re¬

fought them.

and

.

Chairman

mandatory supports, V

get it in May or later.

voting against

which

What

many.

IF

a

the

sans

will

•Y This

Even before the Gas bill veto

runs

vetoes

spring

them

agri¬

the

Cliff Hope

committee.

his

of

Truman a
people felt
for
Truman

controls,

in

Wolcott in fi¬

as

also ranking minority

member

First

First

Rep.

is

Hope

The

Trust

Kans.) who also has announced
that he will not run again. Mr.

how

when the President saw

he

the margin

and

that

come,

that

to

New York; Blyth & Co.,

known

areas

is

nance

he

Harry

bank"

or

be counted with Ike.

dent,

about

well

As

associated

are:

YY;':,;Y

■

cultural

con¬

year

control, will see to it Y.
that although he will get a "soil

90%

farmer-voters and stand up

certain

as

in

are

As far as a particular
Senator—any Senator—is con¬
cerned, it is easier to vote for
the 90% supports when they are

from

teach

lesson

won

is

It

hower

side and

mandatory

helped

licans

-

That

1946,

in

ment

to

will

supports.

;

the

of

the architects of their abandon¬

stuck

f

whether to back
the flexibles

end

about

supports,

the "popular"

to take

foe

He
fought
implacably from the
of War II, and was one of

party.

upon

being reyield from

are

prices

The Y4s maturing in 1982
being reoffered.

The

Hope Also Quitting

economy.

kitty, courtesy of the
taxpayers and the Republican

'Y;Yv

on

anyway.

no

income

Now a similar trial confronts
on

This would T
sweetening of the farm Y,

possible

Sen¬

integrity. But for this ire,
margin probably would have

the President

Others than

year.

Also

Michigander did not try, but
because
the House didn't
go
along.

not

are

the

controls

inherently phony char¬

the Senators

building with a

a

'

arch

an

trolled

reflected the anger

been smaller.)

been

f

this

maturities
at

turity.

business a
different number!"
our

up

jactt

mignt

Michigander has always

The

a

"unavoidable

of

scene.

i

their

f

said

He

haste.

so

moved to

we

we

passed from the active po¬

litical

delay" probably would preclude

of Senator Francis Case's

and the

•

or

have

Benson

putting the "soil bank" into op-

charges against the oil industry

the

for

pleaded

eration

the

acter

the other day, Mr.

ture

ttiink

warts, but one of the most ef¬
fective
of
conservatives
will

what they

to

(The
comparatively
margin the Gas bill got
over

bit if

beyond reason.

appeared before the
Committee on Agricul¬

House

from regula¬

S.A.

1.70% to 2.40%, according to ma¬
I

"bometimes

When he

ex¬

1981

offered

Pleads for Speed

wishes.

passage

to

the President's

conform

to

are

&

from May 1, 1958 to 1982. The 1958

un¬

mod¬

scheme
work.
If the
too high, the

no

cost would go

political

told

were

to

for

pay

computations

extent, hazarded
standing in

this

own

order

gas

for

N.T.

were

Building Aid Bonds, Series L, as
5s, 3s, 2%s, 2V4S and V4S on a
bid of 100.034, The bonds mature

ified by Ezra T. Benson,

the demagogues put it.

to

They,
their

."

operate

to

America

awarded $30,000,000 State of California School

farmers

enough,

volunteer

of

and associates

if the dole

For

high

not

der the Henry Wallace, as

to

some

"voted

Bank

farm,

computations

tailored

necessary.

is

won't

assump¬

President,

Senators

these

California State Bonds

average

and yields for every

These
are

pointed

words,

have

of

out

three, or four crops per
individual farm, in some cases.

Eisenhower

other

upon

for two,

obtained

votes were

some

millions

computations

of

worked

acres

key Senators in the vote on the
_

Group
Offering$30,000,000

tomorrow.

law

because

is

be

to

other

bill.

are

Bank of America

"soil

the

if

even

became

millions

price
supports
and
voting
agaiqjst a return to the manda¬
tory 90% supports), is exactly
several

they

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own
views.]

of

truckloads

many

crops

bank"

the ques¬
tion of standing with the Presi¬
dent for the so-called "flexible"

ate

out

pay

eral key Senators on

confronted

semi-sure

a

because

[This column is intended to re¬
flect the "behind the scene" inter¬

hardtaxpayer cash to farmers on

That

tion

only
Republicans.

Many on the Hill doubt that Y

The situation confronting sev¬

back

conservatives have
tenure

Secretary Benson could actually

even.

wanted

hears
will

the woods who

personal politi¬
cal fortunes, after the Gas bill
veto, on the premise Eisenhower
won't again run out on them.

Ttepublican leader, so indicated,
he was not kidding.
Likewise
Mr. Knoy/land was not threat¬
ening the President.
What he
was
trying to put across has
nothing to do with revenge, for
tew politicians will forsake selfinterest for the fun of getting

out,

there

Consequently

will stake their

When Bill Knowland,

what

their party had a state
political monopoly. In the Re¬
publican North, however, few

discontent.

Hill

the

on

be few babes in

Gas bill.

Gas

one

this.

because

Administration

is terrified over farm

luckiest of politicians

to be the

doubt about that

no

Eisenhower

the

turn out

Eisenhower will

dent

Quitting

FOREIGN

Representative Jesse P. Wol¬
is

quitting

the

Congress.

veteran

and

Michigander will
run
again this November,
announced.
The
Congress
the Republican party will

not

only lose

he

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