Full text of Commercial and Financial Chronicle : March 15, 1956, Vol. 183, No. 5516

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TELEVISION AND ELECTRONICS INDUSTRY FEATURED TODAY
u

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•' ^

•-

I 1

Y'

OF MICH GAN

■MiAR

Commercial

2 u 1356

I31KBS MWMSTiAIlM
ittuir

Reg. U. S. Pat. Office

Volume 183

Number 5516

New York 7,

N. Y., Thursday, March 15, 1956

Price 40

Cents

Copy

a

EDITORIAL

As
•It

is,

we

"health

We See It

the

the

of

much

President"

thereto not to hold
of

too

suppose,

of

Color Television in the

and

to

§

Vice-President, General Electric Company
G-E Electronics Division

Lord, 1956. It did not seem to be a matter
political importance in 1944, that a
President in evidently failing health offered him¬
as

a

fourth term candidate and

elected"

was

-

large majority. For one reason or another
the politicians of that
year seemed to think it
best to have little to
say about the ability of
President Roosevelt to perform the duties of the
Executive

and

Commander-in-Chief

in

tube, and that

a
-

critical

very

of

year

our

Just

*

■*:

history.

progress

of its post-acceleration

run

is being made in solving remain-

ing technological problems.

'

'

year—well, the infirmities of Presi¬
dent Eisenhower, whatever their
degree or im¬
portance, are on the record, and the opposing
party, finding it difficult to attack his policies
(since they are rather largely its own) rather
naturally is determined not to neglect a talking
point that fate has placed at their disposal. Some
of the presumably more
cunning of the politicians
appear to believe that they can avoid the risk
(supposedly entailed) in talking about the health
of a popular hero by
trying to make it appear
that the President, in order to
bring his tasks

we

in

looking at the progress color television has made,
might well go back to one of the first lessons learned

the

study

of

physics—that
results

ture

ing,

we

where

where 'it

and

concerns

Continued

Dr.

/ DEALERS

PICTURES

been

a

in

Now

that

*

puts

automation

.

in

the

learn that such

a

widespread opinion

exists in Detroit.

r

Considerations

bad

and it's really startling to

company

realm

us

of

^

;

who have explored

automation,

this fascinating ! field has certainly posed
some
deeply provocative thoughts,

"

mation—a
better

for

are

States

was

for

long-estab-

several

THIS

York

an

address

Council

by
the

of

Dr.

ISSUE—Candid

Security

years

virtually non-existent.

Baker

Southern

before

New

photos

I say

the

York

taken

Dealers Association

the
on

Feb.

30th

pages

which it
of it

on

children.

our

is far

see,

of

diverse

as

be put.

can
our

which

it

more

is

the

as

com¬

to

uses

civilization in sociological, economical, and
are potentially as great as those of the

political terms

Industrial Revolution.

But none of this will

Municipal

Continued

Annual

Dinner

of

Trade Bank & Trust

over-

page

37

the

33, 34, 35 and 36.

STATE

UNO

#

MUNICIPAL

LATEST

Progress Report

BONDS

"ATOMIC

available

IITAILISHCD

AND

115

OTHER

'

NEW

STOCK

YORK
AND

I•••

STOCK

ON

Bond

Members New York Stock

120

1832

Exchange

American

Stock

District Bonds
BROAD

STREET

COMPANY




3%%

Orders

Executed

On

AH

•

Power & Light Co.

Debentures

Due October

SECURITIES

1,

1965

COMMON

Payable in United States dollars
Price

Canadian Exchanges At Regular Rates
CANADIAN

98.37

to

Yield

3.45%

Analysis

DIRECT

WIRES TO

PERTH AMBOY

upon

Unlisted

DEPARTMENT

Dohithoti Securities

MONTREAL AND TORONTO

Goodbody

&

Co.

Grporatioti
Associate

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Member

of

American

40

Tel. WHitehall 4-8161

Tele.

and

NY

1-702-3

Neu)

other

111

Exchange Place, New York 5, N. Y.

request to

Trading Dept.

IRA HAUPT &CO.
Members

Stock

Exchange

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

Pacific

our

NEW YORK 4, N. Y.

OAUAS

$400,000

^Teletype NY 1-2270

25

bank

Banks and Brokers

CANADIAN

Exchange

I

Chase Manhattan

5

City of Montreal

Commission

New York Stock

YORK

34 offices from coast to coast

To Dealers,

Members

Exchange

BROADWAY, NEW

Net Active Markets Maintained

ESTABLISHED

DEPARTMENT

THE

Dept. Teletype: NY 1-708

7-7500—Teletype NY 1-276G

T. L.Watson & Co.

BOND

REQUEST

HARRIS, UPHAM & C°

of new york

EXCHANGES

:

'

•

the first national city bank

EXCHANGE

COMMODITY

Broadway, New York 6, N.Y.

Tel. BA

County and

"

ARE NOW AVAILABLE

MEMBERS

State, .Municipal,

Bonds and Notes

;

ENERGY

"

J. R. WlLLISTON & CO.

DEPARTMENT

30 BROAD ST., N.Y.

Housing Agency

REVIEW"

CORN EXCHANGE

BANK

Public

COPIES OF OUR

HAnover 2-3700

FIRST

on

and

CHEMICAL

BOND

come

En¬

1956.

State, Municipal

Securities
telephone:

Paul A. Just

And the effects

U. S. Government,

State and

a

so

factory production line.

a

are

and

us

you

elements

prised

49

and

21,

just

The

Radio

page

Technical

Area,

at

appear

on

life

than

now.

have found

we

challenge .because

a

—

our

Automation,

mass monochrome market

Continued

gineering

much of

sense thait jplack and white

market

however, the

but instead of l'ear

challenge

in

/

'

future depends on auto¬
future that will mean a

mainstream

the United

help balance the

Federal budget.

interesting radio poll was taken in Detroit last
year.
This poll discovered that what Detroit listeners
feared most were, first,
Russia, and, second, automation.

has

at

necessity to meet

a

even

ward movement of the

w. R. G. Baker

Ten years ago,

IN

New

stands

,

than tech¬

An

measure¬

lished market in monochrome.

38

page

a

industry

as

demands and

these measures, then,,by
which we may gauge our
progress
in color TV?
As a starting point,
let's consider first a
comparison of
today's color advances with the for-

♦From

on

*

Commercial

,

What

at this

us

the

rather

of

..the

"long-establishe<jT mostly in the

such that

;

television, and to try
industry is go¬

must first "make

regret about it is the fact that it

we

making

-

automation.

consumer

To those of

deal of this argument appears to us to
be badly overdrawn if not actually
silly, but it
as

color

V" Present time.

A good

is not this issue

of

been

has

time. What

careful

of

progress

To evaluate the fu¬

ment" '..of

monarchy

or a

the

man's

predicted

to discern where the

strength, is changing the
office of the Presidency into
something, if not
unconstitutional, then at least more suitable for

"big business"

from

of

measurements."

within the limits of his

the management of
than a democracy.

"all

limitations

in this treatment of automation

In

But this

economic

a slow, uneven rate of
Sociological, economical
and political effects expected to be
greater than the In¬
dustrial Revolution, and heavier investment is described
■;i as requiring regularization of production, employment
V and
capital formation, an assured market, and higher
personnel standards. Unemployment fears are dismissed

introduction

industry's laboratory work,

pilot

envisions

nological advances will determine

below $500 and 1960 price differential could be
25%.
Dr. Baker reveals:
unceasing
a

r,

developments and good growth'
prospects for electronics to grow with automation, Mr.'

bright future in Color TV. Sales of 150,000 sets in 1956,
1: million by 1958 and 5 million sold annually by 1960
is predicted, though 1956
prices are not expected to be

General Electric plans

,,

In spite of sensational

Manager, in reviewing the com¬
technical problems to be solved, discerns a

mercial and
V<

a

Chief

Television Shares Management Corporation

national election

of first rate

by

Executive Vice-President

•

our

self

By PAUL A. JUST

Manager, G-E Electronics Division

related

matters

And Growth of Electronics

By DR. W. R. G. BAKER*

leading place in the politics
campaigns in this year

a

American Home

v

the

expect

Automation—Robust Robot

Stock

Exchange

Exchanges

Broadway, N. Y. 6

WOrth 4-6000

Boston

Yorh

Principal

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

■%

2

The

Brokers, Dealers only

For Banks,

Looking For

(The articles contained in this forum are not

Partner, C. EL Unterberg, Towbin

wires, maintains

In

sents
t

r

interesting

New York Hanseatic

Corporation

one

•

PHILADELPHIA

the
state¬

above

/

ment

because

of

Specialists in

§

g

RIGHTS

SCRIP

i

Since 1917

ffeP0NNELI&fO.
Members

New

York

American
120

Stock Exchange
Stock Exchange

BROADWAY, NEW YORK 8
2-781S

REctor

TEL.

of

base

broad

1

the

(a)

ties, (b) the calibre and number
of its technical personnel and (c)

low.

tremely

at 1101 Stewart

Trading Marketa

Inc.

$300,000;

shares.

197 662
Of

Alabama-Tennessee Natural

'in

Lynchburg, Va.
-Tele. LY

em-

31500

sales

restricted

agreement among the voting trust,
AR&D

the Rockefellers,

and

and

there

options

outstanding

are

to

totaling

about -19,000,

most of which have

approximately

employees

four
the

Trading Markets

-

Dover Corp.

most

U. S. Thermo Control

ESTABLISHED

21 Wall St., N. Y.

rine
the

1929

Tel. HAnover 2-4850

It

.

•

.•

ture plans,

chased 50

going

t}ie

with

on

the

moving
new

operation

location.
is

for

The

on

in

1957

The

BOUGHT—SOLD

scientists, engineers, and elec¬

tronic

specialists

in

earnings

record

sales

of

and

were:

developments

mag-

as

the

with

personnel

Technology

Members

Stock Exchange

Exchange

1051 Penobscot Building
DETROIT

26, MICH.

Woodward 2-3855
Branch

which

during the

war

Radio
of

had

of

Re-

Harvard
been

set

for electronic

countermeasures.

The
market

company

for

its

found
highly

a

ready

technical

services and facilities and

is

now

DE 75

Office—Bay City, Mich.




Institute

the

Laboratory

University,
up

and

skills

similar

Laboratory of

Massachusetts

search

MORELAND & CO.

Bankers

Broadway, N.Y.6 COrtlandt 1-5680

Firm

Trading Market

Maintained in

—

DELHI

CANADIAN

PETROLEUM, LTD.
Common Stock

WISENER
13 King

such

oscillators,

struments, .special

An unusual

.

Royalty

participation with one
in oil

of the Major Oil Companies
and

require-

leases

sulphur

they

may

ac¬

quire in 2,700,000 Acres of Texas

>co

and Louisiana Tidelands.*;
Write for memo

Garrett

;

.

"*

:

Company

—32 Years in Dallas—

electronic-in120

recorders,

radar test ihpurpose

'

TRUST B

t

as

COMPANY

St. West—Toronto, Canada

Tidelands

the

o

and

LIMITED

FIDELITY
-

UNI OH. LIFE

t\

BLDG.

Dallas, Texas

^

STerling 4751

DL 91

com-

1953

1952

1951.

19,009'

1

1

-

ganization.
*

"

(c) ; The

76,000

.

now

greater emphasis on its sales or¬

•270,000 >■
.77,000

*Estimated

Employment is

management is beginning to place

*$500,000-

6,614,000
4,641,000
3,264,000

The potential for

in sales in 1955.

company

working with
-

about 900,

pany
a

a

has

been

large textile com-*

Saving^

toward the development of

machine

for

the

automatic

weavinS °f figured textiles. .The

engineers and scientists (170 early

jammers were joined

from the Radiation

L. A. DARLING

70 Branches~

Taxes/.but 1 do have a feelinS that

After

Sales

Columbia

that

1897

—

Investment

&

SUC^ *tems *s not ascertainable,

Profits

of which

by

QUOTED

!

111

Tokyo

Office

Brokers

*

to

termeasure

1

Stock

Established
Home

putors, contributed about $500,000

past

10,387,000

of

•

~-X4.

(b). proprietary

1958.

1954

100

-

occupancy

*$9,500,000

than

More

devices.

wartime

Detroit

Yamaichi

'59, could well see Airborne

tentaUyeAgtrumentSi

construction

with

,

its probable
,

power

start

anti-subma¬

electronic

to

write

Securities Co., Ltd.

nients. Nineteen Fifty-Seven, 58.
and

information

or

"

in the midst °f SeVeral very large
towardsprograms

view

a

entire

surface; of
.

of land in Suffolk

1955

war

..,

Airborne recently pur-

acres

to

the

during

;

.

current

Call

industry,
such
as
Sunstrand,
Heald, ! Lees-Bradner,
BarberColeman, Cincinnati Milling,
jones & Lamson,-etc. To date
orders received have been in the
magnitude of a few hundred

*•

,

netic airborne detection and coun-

Midwest

For

t

The company is

motive industry.

Indicative of the company's fu-

University had organized

University had assembled for such

L

T

offices

remaining at practically
stationary levels for three years 1
appear to be stirring due ;
to improved Japanese economy.

manage-

jn(justry has hardly scratched

imately 63,000 square feet.

branch

our

now

onnmv

for the National Defense Research

work

^reenetmiGompan^

in

1945.

21,

the laboratory that Co¬

Committee

Request

Labora¬

incorporated

Aug.

Ave., East Garden

an

to

STOCKS

v

w

MY 1-1557

after

sfeYeral ^ ^ "T*'
^"ldl"gs a'wlth Frof.v marglns„mm0r r,ela"
S
mSf." &ve to tlae J°Yer:/11 operaboat
°
However- to date
e automotive
with
aggregate area of approx-

timetable

was
on

over

lumbia

Instrument*

for

and

exercisable at

are

Instruments

Inc.

Delaware

Precision Radiation

-

part

run

share.

per

took

to

years

Airborne

tory,

Haskelite

on

more

$18

Carlisle Corp.

'Memo

own and I believe the
ment's concept of the

engaged in the custom manufac"

and David Rock-

under

efeller

Exchange
Exchange

JAPANESE

fc'De/el- ture o£ electronic equipment. In thousanddollars... This year. «

41,700 "free" shares. ;In addition

LD 33

62

target indi-.

building nearby of 27,500 square
feet. These premises house the
Engineering and Production Division (and associated administra-.
tive services) which is principally

opment Corp., approximately 60,600 by Laurance

Scott, Horner &
Mason, Inc.

trust

voting

a

nut-

bv

held

are

American Research

bv

Telephone Co.

63 800

standine

<=Wp<5

nHH

iQ7 nnn

th*

Dlovees

Company

Southeastern

debt, approximately
Common stock $1 par

Mortgage

Bank of Virginia

Gas

1955 is:

in

late

dend

Air Control Products,

the outstandthe face of
strong competition the company
has been able to attract outstandjng technical talent,
while government research and
production will undoubtedly rep-

City, Town of Hempstead, L. I., in the field early and is cooperatN. Y., aggregating some 50,000 ing with certain important, essquare feet and
leases a second tablished companies serving the

Capitalization of Airborne after
5% stock divi-

the payment of a

Stock

Stocx

Mobile, Ala.

m ganization will some time in the cator
attachments), analogand
ultimate
§j next five years emerge with one digital computer systems, sub- bonanza will come when commer| or several high profit items and marine-detection equipment, con- cial t business and sales of proH an annual volume well in excess trol devices, automatic test prietary
electronic instruments
1 of its present $9 to $10 million equipment, special antennas, rar develop in volume. In 1955, this
| figure. Thus, I have a convic- diation-pattern
measuring and was less ■* than $1,000,000. This
H tion that Airborne will survive recording systems, servo and com- year might see a substantial per¬
il the
expected casualties in the munication
systems,
automatic centage increase but the volume
g electronic industry and probably direction finders, and encoding, and profit figure probably will .be
g will emerge in the late 1950s with decoding, and programming de- unimportant relative to the foreg volume and earnings which will vices.''-;1' '
;
, V /
seeable potential. The specific
g make the current market valuaThe company owns a modern fields of promise are:
tion of 6V2
million appear ex- one-and-one-half story building '
(a) "Automation" in the auto-

UUBBU

York

Direct wires

radar equipment (includ- small capitalization would appear
ing track - while - scan, height- to be substantial. However, , my
-

American

HAnover 2-0700

terns,

the strong likelihood that the or- finder and moving

New

II lUater St. In Yttft «,«. Y. /

New Orleans, La.- Birmingham, Ala.

Bendix Aviation - CorporaWestinghouse Electric Corporation, The: -Glenn L. Martin resent the major portion of the
Company, Lockheed Aircraft Cor- company'svolume
during the
poration, Douglas Aircraft* Com-* nex^ ^ur years, the ultimate prospany,
Inc., - Collins Radio
Co.,
^ for
profit margins probGrumman
Aircraft, Engineering
jjes jn its; commercial poCorp.
and
Republic
Aviation fential.
I
believe
government
Corp.
volume will be sufficient to mainThe work has included the de- tain- the1 organization
Belmont Towbin
and could
velopment and testing of aircraft even : reach proportions • of such
Airborne's activi- landing systems, navigation sys- size that earnings relative to the

gain
present
levels, but I
make

,

about one-third of
jng shares and in

tion,

from

Cities

provided

or

Members

v

cial Systems and Components and
Radar Tracking Task Force,
.v The
character of the organization is further indicated by the
fact
that
110 > employees
hold

pany,

centage

8AN FRANCISCO

to Principal

Wires

"new

show a
larger per¬

CHICAGO

•

BOSTON

the

may

New York 5
Teletype NY 1-40

WOrth 4-2300

Private

Exchange

Stock

Steiner, Rouse &Co.
Members

has v."

government projects of such companies as Radio Corporation of
America, General Electric Comr

that

be

development"
companies

Member

120 Broadway,

It

of

other

1920

Established
Associate
American

could

S.

-

research, development, or production
work
in
connection
with

se-

i t y.

c u r

consultant

technical

1 y

e

m

e

repre¬

ex-

an

Company—
Warman,
Analyst,

govern-

provided research, development,
production and application t engineering for branches of the military services, and has served as

Laboratory,

(200,000 shares at 34)

000

quickly answered.

of

ment business./The company

Inc., at a
market valuation of about $6,400,-

inquiries

executed and your

Bought—Sold—Quoted

Cyanamid

formed, »:.> Granbery, Marache & Co., New
its sales
York City. (Page 58)

realized from

been

have

In¬

Airborne

opinion,

my

struments

American
Donald

95%

approximately

will be promptly

vari-

Since the company was

Laboratory, Inc.

Airborne Instruments

Towbin, Partner,
C. E. Unterberg, Towbin Co.,
New York City. (Page 2)

related fields.

ous

Co.,

New York

markets in more than
Over-the-Counter securities.

Your orders

Alabama &

Louisiana Securities

Airborne Instruments Laboratory,

intended to be, nor
securities discussed.)

gineering in electronics and

BELMONT TOWBIN

primary
400

they to be regarded, as an offer to sell the

are

nationwide net¬

work of private

A

The'd Selections

particular security.

a

Week's

Participants.and

Inc.—Belmont

trading department sup¬

plemented by a

for favoring

participate and give their reasons

Try "HANSEATIC"
Our large

/.This
Fsrum

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

in the investment

Market

a

*

Security I Like Best

A continuous forum in which,

Next Time You Are

*

Thursday, March 15, 1956

.

(1290)

engaged in research, development,
production

and

application

en-

about

200

are

graduate

application probably will be
in 1955).
The size and calibre to Axminster carpeting. An orof this staff is the prime reason c*er for
^rst two machines
for my long-term bullish attitude .totaling about $250,000 should be
toward the shares. The variety oi/forthcoming- shortly.
While ; it
the company's activities is indi- wil1 Probably be a year or two
cated in part by the departments before
the product is proven
in the Research & Engineering commercially, suffice to say, the
Division, namely, Department of Potential market is substantial.
Applied Electronics; Department
The taxi-radar system apof Medical and Biological Physics; Pears to have proven itself and
Department of Nuclear Technol- *t is hoped that five to six units
ogy;
Department of Radar and might get into production in 1956.
Navigation; Department of Spe- -:
Continued cn page 53

•

N.Q.B.
OVER-THE-COUNTER

?

INDUSTRIAL STOCK INDEX
14-Year Performance of
-

35 Industrial Stocks
FOLDER ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N. Y.

Volume 183

Number 5516... The Commercial and Financial Chronicle

-

(1291)

The Electronics Industry::
Its Potential Outlook

INDEX

Y

"

:

:

.Y

>

Sylvania Electric Products, Inc.

.{r.

-

—Robert C. Oley

YY-—William Zeckendorf

prospects of the electronic industry'sentertainment, industrial,
commercial, defense and repairs phases.; Contrary to econoY ;Y
mists' predictions, • TV/ industry's future sales
vis;depicted Y c
.growing more in the next decade than from its. inception to,th$ -^<
present.: Mr. Mitchell sees in 1965.* (1) annual TV sale? *-Y

Y'v.y—Kenneth W> Fraser___
"J:. Peaceful Uses of the Atom and Private
Y^YDr. Willard'F. Libby_______________

>

,

v.

4-

A little green is what
ye need
To be in style
Saturday
So carry obsoletes to us

>

7

;

And carry greenbacks
away!

Corporate Financing- Methods, Principles and Practices

-

-5.

WEARIN' OF THE GREEN
6

,

A doubling of $11 billion electronic industry in'next tea years Y v
is envisioned by Sylvania President in reviewing the growth Y

•

4

Similar Investment Techniques in Real
Estate and Securities

f
,

AND COMPANY

Trends and Labor Relations Outlook
Slichter

The Institutional Investor Looks at the
Equity Market

!

«

.,

"iicnTflisTfin

Page

Y-Underlying Economic
—Sumner H.

Chairman and President

.

Articles and Newm

Y

«.

By DON G. MITCHELL
V

3

9

-

Development

*

i Obsolete Securities Dept.

10
Middle East Oil and Sterling Strength—Paul
Einzig_i-^_____rY 16
Commercial and Savings Banks: Equal Tax and Branch

09 WALL

STREET, NEW YORK

Telephone: WHitehall 4-6551

Policy

Y?—-Earl B. Schwulst___

20

•

amounting to 7-to 10 million sets;- (2)- color to constitute 72%; Y"
of all sets; (3) Government, the
largest customer, purchases > '
A'y. increasing 10%;^,(d) total sales of entertainment device*Y<
.

-Vii;

>?%; [

electronics

.asY.'the world's
t

'most

•

has

known facts and figures from the

i

■'

past, and combines them with

>

S

<

tion."

When

some.

'markets

of

"electronics,
potential

'limit

gazing.-

from

This

*•:

the company's
weak, where they are

The

,

-

-

r

CINERAMA, INC.

^

3

4

REEVES

Y
6

~

m p o r t a n t'
's tan dpoints:

Don

for-

Folsom—

X

SOUNDCRAFT

11

Y

Y

k

Y

Lee__.-«

12

: GULF COAST

Sales of Television Industry
12

LEASEHOLDS
14

14

Some Problenus and Pit-Falls

—Ernest Sharpe

16

Y Electronics
Industry

in General—John S. Sturgeon___
18
Pay TV a Boon to Televisions-Ted Leitzell-.:
22
Pay Television's.Faults and 111 Consequences
vYrY Y
;Y
—Louis Kausman
22

y
\

extremely

E.

.

Y.Investing in Electronics:

sources 'L

having the Radio-Elec-

Commissioner—Robert

Management Eyes the Computer ?
—Lt. Gen. L. R. Groves, Ret.__

/

we. are

in

M.

Y New
Communication Technique and Its Competitive Uses
*■ —Dr. Allen B. Du Mont

accom~

.tunate

Mitchell

G.

Electronics^Frank

—Benjamin Abrams

;«■*

.industry,

;i

for

Color Receivers to Enlarge

1

drom which to draw historical and v
current facts,
In the electronics %

a

Outlook

FCC

,

V Much of the work is
'piished if we have reliable

of

Cover

TV and Radio Broadcasting As Seen by

;

>

the ideal going rate

,

number

:

ball

information.

ap¬

without

G.- Baker

Television and Appliance Industry's Dynamic Future
; James
H. Carmine

production
for
the
months |
ahead, and many other points of Y

for

pears

R.

Yv

of

its

•growth

^

where

are

/be employed,

I

that

mean

W.

Electronics- Industry: Its Potential Outlook
—Don :g., Mitchell_„_>„_^
Y TV Sets,-New High—Ira U.
Cobleigh____
v-

strong, what sales methods should V

the

''growth

.crystal

'determines

•

I

of

Dr.

*

promis- :■.*

"speak

—

The

.

t

analysis of current conditions and

ing te c h n o"logical revolu¬

f

-

1

an

PRODUCTIONS

•

It is my confirmed •pinion that
yI should take a moment to tell £'
electronics is the fastest growing how these figures were compiled.^*
of all major industries.
In fact, A sales research department .takes Y
-

CINERAMA

Y Automation: Robust Robot and Growth of Electronics
r.
—Paul A. Just
Cover
YColor Television in the American Home - / v ^
:
•
-

f

of
1 the potential
been described

Articles On ^Television and Electronics
Industry

YY

increasing 40%, and. (5) less .rapidly developing, industrial YrYv
.Y
and commercial fisld to take on tremendous growth.^* v*

-

J.F.ReiIly&Co.,Inc.

.tronics-Television Y Manufacturers
i '(1) the introy \ Closed TV
System's Applications and Effect Upon TV
Y '
]' 'duction of new products; (2) the Association, known as RETMA, c
—Ralph E. Strum
24
'expansion of companies already
;
most exact " Electronic Industry's Bright
Future—Philip S. Fogg-.^_ 24:
'in the industry; (3) the entrance .and reliable industry reports that Y
Y Radio Industry and the
Rising Electronic Midget
~
of new companies;
(4) the vast * kmxw °f. Let me say now, I .
—Henry */., Argento_~«_—
25
number of new applications that -believe our predictions
can-J-pme
Y Automation in Television, for :a Better Industry 77 YY
to within at least 85 to 90% of •
A will be found for

42

Broadway, New York 4

DIgby 4-4970

i-€<?TP^e.?

i

Teletype: NY 1-4643 '

'

electronic

•;

equip-

(5) the inelectronics
national defense;

-will

an

the

*

electronics

-

industry vis

.historical

facts.

home, and the individual.

The

the Y application

known

In

.'

"

of

logic

and

.

<

Electronics

10

A

current

-

r

7

discussing the various phases

-relatively new industry; and it' is
growing very rapidly. Since elec- -j aspect, which, of
-tronics encompasses a vast multixtude
of "products
and
systems;

includes
radio and television. rImthis field,

1

r

v

—Paul

that

has

it

been

anc*

a

} monumental task just producing!J

figures relating to sales volume.

!

'Until
;

a

year

there

available; without sales fig*
ures, of course, it was impossible
<to hazard any conjecture about
-

1

were

the

future

the

of

electronics

dustry, and where electronics

.

'

,

In the field of electronics
ufacture

-

figures

no such

ago,

forth.

so

-for

national

good-data

are

-

William

in-- the
was

as

Bravo!

field.

"1

Y

man-

;

Bank

Business—Edward Finkel__ 57

and

; -:

;

!_I'

(Editorial)—

Man's

l

fuiur? 0^ar?if
a

^ectronics
s

j3ecause

bow to Sylvania

Y Sales Research Department, I can

Bookshelf..^

X--

Funds

—-

,so

much less;

Reporter's

Public

Utility

say

,

.

,

°

.

f

.

.

*

on

_.

,3

unprecedented

.estimates

•

-

.

industry has
,

of

Railroad

will,

if

...

a

history

.

•

these

growth,

anything,' be

the conservative side.

important

grand

a

total,

&

percentage

and,

Philadelphia

Prospective

the

Securities

therefore,

the

The Market

May

Chicago

to

1

Los Angelas '

*

.

.

Speculative Profit

L

47
52

Registration..

MARLOWE CHEMICAL

60
t

Offerings

State

Washington

and

Y

*

Among Marlowe Chemical Co.'s

69

and You—By Wallace Streete

of Trade and

•

65

Corner

8
,

The

*

52

;

_____

Security

^

___'

Outstanding Stock

67

Securities.

Salesman's

An

5

The Security I Like Best

absence of data does not seriously
Continued on page 50...

*

For

55

Report

Securities

of

a

Wilfred

Securities Now in
-

.

.

electronics

more

68

Bankers___

Our Reporter on Governments--

Our

..Held-has developed

in

securities

■

Direct Wires

27
8

1

About Banks and

Observations—A.

that the figures and facts are' rapidly than the amusement
and^
completely realistic, and should defense fields, the sales and prostand- up well over the
^ext 10- duction totals do not constitute so
years.
Bearing in mind that the
■

markets

10

Mutual

*

trading

over-the-counter

70

News

industrial-commercial.

Request

on

40 Exchange PL N. Y.
Teletype NY 1-1825 & 1-4844

51

From Washington Ahead of the News—Carlisle
Bargeron_

However,

350

HA 2-0270

Cover

Stocks__j._l!._____:

Indications of Current Business
Activity________

*

maintain

Singer, Bean
&Mackie; inc.

48

Regular Features

Insurance

*Circular

r-

than

,

.'industry. With

-

48

,7

*

-

Business

;

commerce.

•

•

Inflationary

Dealer-Broker Investment Recommendations

are

industry and

?

Earth Mining Corp.

Strategic Materials Corp. *

39

___^

(Boxed)

f

As We See It

to Y

considerably less data
; going was just anybody's guess. Y - available on the
industry's past •;
SylvaniaElectrie'ssalesrescarch- and present performance in the «
department recently completed its- field of electronics equipment for •
latest appraisal of the present and

Rare

v

those pertaining to Y

amusement

There

,

Mines Co.*

3.1.

J. Grede, NAM Head, Contends Tax Reduction

Would Not Be

the analysts, but they are neither;
as fluid, nor made
available as Y

frequently

Galvin_,

Leaseholds, Inc.

Pacific Uranium

Y

.

.

We

defense, Y

available

V.

Antenna Replacement/Is Big

*

you

•

-

'''^here are extremely reliable data y
since new products and systems available, and plenty of informa*are
being developed and intro-;ti#n concerning correlative facts,
duced almost daily; since new -such • as the number of wired
i ^companies are
entering the elec- homes,,the rate of family and new j;
\ * tronics field all the time, I can-home .growth,- saturation points,;
•assure

Gulf Coast
30

;

Transmission Towers—Robert A.r
Vaughan__

-

T

Finlayson__-__^______ 28

Automation to Free Man from Routine

<

-i

Company

Challenge of the Electronic Age—H. Leslie Hoffman____ 32
Electronic Industry's Outlooks-Robert C.
Sprague____— 32
Replacementsy Second Sets and Color Television Demand

(

course,

and

Elmer

W. Engstrom,,,
Advertising Dollars from Higher

More

'

ibe electronics industry,.let hie ;
first v discuss the, entertainment y

a

—Dr.

Corpus Christi ^Refining

26

Electronics and the Future—S. M.

extension

by

bring to our
(6)' the greater benefits it
will bring to industry, commerce,

'and

—Martin Sheridan.

Y

and possibly better,. by
of. past trends,, and

accuracy,

Y -ment and components;
-creased strength that

products

are

2

Industry

5

You__r—^—.'___

72

"FIRE CHIEF"
Published

.

The

For many years we

have

I) QPrr DD C fl
specialized in 4 » LJ l H Ii LU

CTflPKC
01 U U l\0
•

■

25

BROAD

•

Nashville

Boston
•




TELETYPE N. Y. 1-5

•

•

Chicago

Schenectady

•

•

Glens Fall®
Worcester

rnviBAw

Reentered

HERBERT D.
WILLIAM

2-9570

to

york

Thursday,

15,

S.C?rd.!nHC0:Krniw. n,eJS; bank clei'ri,lg••
and city news. etc.).
,

Offices:

HI.

135

South

La

Salle

St.,

(Telephone STate 2-0613);

Low

cost,

non-toxic fire

extinguisher
office and

at

y^

the
fche

for home,
factory.

post office at New
Qf March 8, 1879.

^

Price around

Rates

Subscriptions in United States, U.
Possessions, Territories
and
Members

of

Pan-American

Union,

in

Dominion

Canada.

Other

1956

stale

Other

Eng¬

\

SEIBERT, President

March

C.

Smith.

Subscription

SEIBERT, Editor & Publisher
DANA

E.

second-class matter Febru-

as

1942,

N

9576

Every Thursday (general news and ad¬
vertising issue) and every Monday (complejte statistical issue — market quotation

Chicago 3,

25,

ary

„„i„

COMPANY, Publishers

r

1

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Albany

Stock Exchange

n.w,

&

London,

Copyright 1956 by William B. Dana
Company

CHRONICLE

DANA

Gardens

Place, New York 7, N. Y.

REctor

.

New York

„

B.

Park

Drapers'

and

Reg. U. S. Patent Office

25

Members

>4

land, c/o Edwards

COMMERCIAL

FINANCIAL

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Spencer Trask & Co,

Twice Weekly

of

$60.00

Countries, $67.00 per
Other

Bank

and

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year;

per

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year.

year.

7

GENERAL INVESTING CORP.

Publications

Quotation

year.

per

$63.00

S.

Record

—

Monthly,

(Foreign postage extra.)

80 Wall Street, New York 5, N.

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Note-On account ol the Iluctuatlona In
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exchange, remittances (or (or"ign subscriptions and advertisements must

be mads in New York

fund*.

"V

Y.

The Commercial and Financial Chronicle...
4

Thursday, March 15, 1956

(1292)
A

TV Sels New High

#

IRA

By

U. COBLEIGII

Enterprise

/"/V*

Economist

foregoing

the

of

part

good

Underlying Economic Trends

slippage was the decline in mili¬
tary shipments.
If Admiral did
not earn as impressively last year
as
some
of its competitors, the

And Labor Relations Outlook

of its common ($20)

market price

about patterns in viewing, progress
sales, and projection of the influence of television.

Some swift screenings

<

set

in

efficiency

sales

and

duction

Lamont University Professor, Harvard

$64,000 questions

importance of
television
in

cottage or hunting lodge; or

Nationally known economist in reviewing

probable pros¬
replaced
by offsetting declining, expanding and horizontal trends; (2)
1956 wage rise to be similar to 1955 with steel union a "most
successful winner of wage increases"; (5) firm managerial

past, and its profit prospects
TV, provide some sub¬
stance for those considering ADL
at 20 with an indicated $1 divi¬
color

in

dend.

dent.

d Ski 1 y-

As

a

future

has

,

video,
After

<

for

known

many

pects believes: (1) traditional business cycle is being

Inc., / perhaps
best
its automobile radio,

Motorola,

other
variations in store for us.
The

University

in

the

the
and $100,000 questions on our TV
doings at Ebbets Field, deskside,
programs, but there is no longer
to relieve the industrial tension
the slightest question about the of
an overwrought - Vice-PresiThere may be

SUMNER II. SLICHTER*

By

pretty well to have dis¬
counted the fact.
Admiral's pro¬
seems

prerogatives are required to balance uninterrupted production
is a
progressive, welt: managed
discussion pro andv TV and electronic; enterprise with*, f
^ow cos^»
cwrent business level to last until a likely
pee r,
whilst cofi^ ahd. some sharp conflicts in - sales ana per share netf;art new 4^. upturn at the end of the year; (5) productive capacity to grow
video
viliians viewpoint, pay television of some highs in *
^ Motorola
3.5-4% annual rate and per hour output at or faster than
j leer, we have sort may yet come our way, prin- first in : two-way radios, and
ihe -2.5 yearly rate; (6) cheerful consumer medium-term out¬
ehanneled our cipally in deluxe motion picture probably fourth in television set
look affected by money demand exceeding goods supply; and
lives into new
premieres and championship sales. About 17%'of .total sales
our

.

lives.

.

we

great deal of

sporting events. Color, too, is in
our future, and its arrival among
us
will surely be accelerated in
become a far
1956.
Starting
the
year
with
more
signifi- about 46,000 sets, some of the
cant
military experts predict we'll add 250,000
figure than by Christmas, and gradually these
Hannibal or sets will come down in price.
"Jeb"
Stuart; With a nice big-screen black and

patterns. Sargeant B i 1 k o
has bafflingly

U. Cobleigh

Ira

rola

<7) future growth and investment will be conditioned by supply

military account. Moto¬
was split 2-for-l in

for

are

of engineers, extent

common

a 10% stock
and
another

there- was

1945;

1951

in

dividend

tive need

Slichter notes business executives

split in 1952. This history
of share fission should not go un¬

2-for-l

is

MOT

noted.
listed

and

their

now

and economic conditions.
I

unfilled

ing at 48 paying $1.50. Cash divi¬
Business at the present time is
Falstaff for white job available around $200, dends have been paid since 1942.
Philco
Corporation,
with
its affording fresh evidence that the
all save a few owl-eyed literati;
only the most opulent are willwhilst Alfred Hitchcock has releing to pay a $500 premium for distinguished sales record, con- traditional business cycle is breakgated reading of the works of the color version, but lots of peo- tinues to attract a large market ing up, and that different parts
of
the
econSir
Arthur Conan
Doyle to a pie could be persuaded to plunk following in its common selling
o m y
f r epastime for bibliophiles.
From down an extra $100 or maybe at 36, and paying $1.60. Philco
ranks second in TV set produc¬
literature, conversation and ca- $200 for color,
quently move
in
opposite
nasta, our liesure life have made
Having
delivered this brief tion and is a major factor in
directions.
A
us virtual slaves to channels and
background on the sociology and radios, refrigerators, ranges and
dramatic
il¬
panels.
Fbr something like 16 economics of TV, let's move on freezers as well. For 1956, sales
hours a week the average Amerto a market look at some of the are projected above the $375 mil¬
lustration
of
ican

family

its members
In

has one or more of
beaming at a screen.
terms,

absolute

more

we

lion

leader in almost every phase of

38

some

sets

television

either

local

a

million

$2.20
not

in America;

luncheon,

Rotary

hearing aids. Its most advanced
products are its Flash-Matic TV
set featuring remote control tuning, and an all-transistor radio,
Management ranks with the best
in the industry and Zenith cornmon has been a fine market performer. Only 492,464 shares are

and

earnings of about

these

on

site

and

with

up

Magnavox gained 20%

in sales

which has distinguished
delivering programs of

CBS,
itself

in

high

popularity,
increased
its
±1.1/0
17.4% uuiing xaooj uiiu
during 1955; and
talk of about $2.25 a

earnings
analysts

i.cuiiiiigd

share

the

on

common

this

year.

Op this basis the 80 cent dividend
could

has

scene

dialing

tended

of

to

be

the

deed,

of

ad¬

new

figure,

January

on

a

were almost as impressive
those for January. All forms
of awards increased.
Thein¬

Slichter

H.

ruary

in-

steel

as

Aupro-

d

u

c

t i

December and
1955, but
output in January set an allbelow

10%

time high.

19.7%

was

three

of

weeks

1955.
This is consid¬
larger than the gain of

February,

r

erably

early stages of the
current boom there were impor-

3.4%

residential

in

between

awards

economic trends.•
For example, during the last half
of. 1954 and the first quarter of
1955, when consumer buying and
uiibtiiiiig
offsetting

the TV pttdueers'
of the equipment were falling.

awards

first

idential building which was 9.5%
above
the
first three weeks of

Even in the

lani
tant

the

February, 1955. Particularly im¬
pressive was the increase in res¬

4% below January,

was

for

above

dropped more
than

all

crease

n

o

prrrj

Januarv

contract

January,

IQ'Sfi

1955,

lnnlrs

Tt

vprv

^anuJ^s^ 1
tureg

Qn

housi

to

come

In the

til the

landing

nf

iQ^

in

end

trends

the

than

mQre

an

to an

d

construction-Were rising rapidly/*;: tj*

advance^/

be

This-swift

seasonally

Contract
awards since last September. In¬

the

dustries.
Sumner

steel

during the last half of 1955.

by"

tomobile

earn¬

to $1.28 a share from 97
cents the year before.
Emerson
features a 14-inch portable.
ings

the

rate

justed

automobile

good year (fis¬

a

10/31/55)

in

also

rise

all-time high. Contract awards
for the first three weeks of Feb-

assert leadership in the com¬
ing boom in color sets.

may

ended

There has been a sharp

cember.

seasonally adjusted basis, was an

uary

Emerson had

has

given in Jan-

cheap, but judging by
Philco

appear

machinery

for

orders

been particularly large—$1.6 billion, or almost 11%, between the
end of August and the end of De-

was

ments

its history in the industry,

cal

filled

move-

On this basis PHL may

manufacturers

of

orders

continued ta increase. At the end
of January they were $5.7 billion,
or about 12% higher than at the
end of July, The gain in the un-

oppo¬

the common appear pre¬

dictable.

installed radio and TV, and crossing the
we'll billion mark in sales last year,
deliver seven and a half million needs no introduction. It has been
more
this year requiring a cus- reviewed and cited by so many
tomer outlay of about $2 billion;
investment savants that we need
and
the fact
that we can see not dwell on it here except to
everything from Howdy Doody note that RCA will bring out, on
to Richard III for free, is because April
1, a $125 portable model,
of the flowing purses of sponsors It should sell well
and induce
who will blithely spend $1.1 bilimitation. And if you're shoplion or more
on
this radiating ping for TV equities, Radio cornrectangular type of advertising in mon at 48 paying $1 plus extras,
1956
certainly should not be tuned out.
To
deliver all this entertainZenith Radio Corporation de¬
ment, interspersed with commer- serves comment on the basis of
cials, 443 stations are available its splendid 1955 showing, boostfor program transmission. About mg sales (over 1954) from $138.6
half of the time the average stamillion to $152.9; and per share
tion
will
transmit
a
network net from $11.53 to $16.31.; Zenith
show; while the other half'of is not only important in TV and
running
time
may
bring ; you radio but is a major-maker of

have

level

set makers.
Radio Corporation of America,

of

aware

sell¬

displaced

has

Gobel

becoming better

are

responsibilities to meet rapidly changing technical, social

issue,

popular

a

N.Y.S.E.

on

of research and development, and impera¬
potential college population. Professor

educate

to

thP

ev-

economy
contracti

^

second and
ones, with the result'that producnearly all of the economic ^.Qn wag rising though at a diluded to a
series were moving up together, minishing rate
Important
too
Much has been argued about
diversely bearing on the indus- but, beginning with last summer, was the fact that considerably
the imputed
limitations of TV;
try; and perhaps from the issues an increasing number of diver- more than hal{ q( thg increase
but
most
of
the
arguers
are
cited you may pick out one with gencies
have been appearing. in production between the third
wrong.
It is true that a housean expanding market future, even
Housing starts began falling over an(J fourth quarters o{ lg55 ($2 9
wife can't easily sew, iron, do the
from the exalted 500 Dow Jones a year ago, and after August last bimon Qut of an increase o{ $g 3
dishes, or go from room to room outstanding (sole capitalization)
making beds, and still glue her and the issue currently paying plateau on which we find our- year, expenditures on residential billion) was due to the increase
selves.
construction
,°r in inventories. Since about the
eyes on Garroway. But it is also
$5 has been repeatedly cited as
seasonal) have also been fa
g. beginning of the year, the extrue
that
she
can
(and does) a candidate for a split. At 138,
hasten the finish of these tasks ZE is an authentic value if earnstructiori reached at least a tern- the econ
N.Y. HanseaHc Wire to SrordTod^chfedr|tnl?st^a' tern" panding and contracting parts of
haye been roughly
or catch the video
part time, on in& power. is any criterion.
Its
porary peak in the fall, and in
.
bal
T
f
f
if
,^4
the run between household tasks come quite a long way, since it
December and January there was as j£ the total levehf
produeton
and still not lose the continuity,
sold at one-eighth in 1932!.
a
small
Another point should be noted.
Admiral
Corporation
derives
drop^ in these outlays. in the first quarter of 1956 will
New York Hanseatic Corpora¬
Retail sales
There's gotten to be a strong deabout one-half of its total sales tion announces the opening of a
ap
rise
in
the baited^ their
late
summer,
and be slightly below the rate during
*up

or

fashion

Western

show,

or

a

vintage

cinema.

than the spot
variety.
It has alnumber of companies

rather

panoramic,

commercial

year

Straus, Blosser Co.

mand

than
for

in

homes

many

for more

set, not only to allow
inter
family differences in
one

television sets. It is also
sixth in refrigerator production;
and turns out home freezers, air
conditioners and electric ranges,

from

but also to proviewing with- Nineteen fifty-five sales were $202
out moving from room to room,
million, down $17 million from
or
from floor to floor.
And fi- 1954, and net (including 70 cents

program

vide

for

tastes,

indolent

companies are
now
with portables
designed to bring TV to seashore
nally

the major
coming out

last

direct

private

Blosser

William

firm's

to
in

representative

bond

Straus,
Chicago.

continues

Sholten

A.

midwest

wire

McDowell

&

of

sustained by price cuts.

of

the

Spring Street, Members
Angeles Stock Ex¬

Los

change.

CORPORATE BONDS
Partners
vestment

to

The

Robinson-Humphretj Company,Inc.

of

RHODES-HAVERTY BLDG.
WALNUT 0316




ATLANTA

1, GEORGIA

New

firms nave
firms have

Develoument
development

America

They

are

in-

York

been elected
oeen elected

&

number

Nu-;

r

V

Y.

James T. Hill, Jr., a

„

p

n

Tr

How long will the present horizontal movement of business last,
and will it be followed by

turn

Qr

an upMy iudg-

downturn?

a

ment is that the horizontal move-

expanding

expenditures

ok

plant

new

and

equipment, especially equipment,
.

,

,

.

.

tion

remain

changed

more

during

less

or

the

un-

next

six

and al?° busA\n.?ss sPendin2 on in" months? Simply because the exVentones.
Although new orders panding and
contracting
influnf

manufacturers

Cornoration*'2
manutacturers
dropped somewhat

i1 i
i iS
Pawling, N.

and

of

Government

uorporauon

in William A. M. Burden
Co., and Nathan R. Owen, a
partner in J. H. Whitney & Co.

partner

thmiaii

trends. ment wiu ^ t
m
h
for fourth quarte and that it wiI, be
goods
and services have been followed by an upturn
growing.
So have business exWhy wil, the )evel of produc_

a

(NDA), reactor engi-s ceptionally

^rrgJirm
White Plains

LONG DISTANCE 421

two

board of directors of

the

elear
ciear

in

.

Tending to offset the declining
horizontal trends have been

and

penditures

Elected Directors

LOCAL STOCKS

v

.

m

affiliated with Morgan & Co.

634 South

STATE AND MUNICIPAL BONDS

to

destined

Calif. —Jerry

ANGELES,

sharply and, on a
adjusted basis, seem
drop farther unless

dropped

seasonally

D. Barnett and Morris F. Fox are
74 ESTABLISHED 1894E

iqt5*

department.

(Special to The Financial Chronicle)

now

of

as

have

LOS

Quarter

Zh hlw T^

™

the

Two With Morgan

in non-recurring
charges)
per
share was $1.03 against $2.78 a
year earlier.

seasonal)

for

adjustment

(after

high

in

m

Tanuarv

conxraciin^ lnxiu

Lnno ,fin

January ences willseveral resnects the balremain roughly in inance.
In

below the exfigure for^De-

fluences

making

for

contraction

cember> they exceeded deliveries are stronger now than they were
by

$1.1

billion.

As a result, the

]ate

in

there

—__

36;h\^fulrreebtrnrofStLfis;oda;ed In!
dustries

of

March

1956.

6,

Cleveland,

Cleveland,

O.,

1955.

has

In

the

first

undoubtedly

place,
been a

drop in the rate of inventory acContinued

on

page

41

Volume 183

Number 5516

The Commercial and Financial Chronicle

...

(1293)

only if the articles of association

fr

of
Steel

The

Production

Electric

Carloadings
Trade

output

power

the past week but

the other hand

was

decreased

rise in initial
exceeded
•most

claims

that

for

the

of

noticeably

in

1
•

In

-

last

week

by

year

6%.

Claims

were

3%

,

;

,

.

,

r

,

;

;

,

the Government1 estimated 300,000 fewer
persons held jobs than a month earlier but the number of jobless
remained at 2,900,000.
i:

^

•

^
"

Secretary Weeks and
slip on lay-offs in

automobile and

related

as

curtailments"

industries

as

well

is proper in legislative but not in

management

tive

addition

"further seasonal

;

North-

Car

-

1 i

where

n

it

0

was

a,

formerly
permissive,
scheduled

,

supply in the next three months will be

1,

people

some

steel

talking about

are

a

missive

letdown, the facts of

market

little better.

a

May

where

sumed to

In

be forbidden.

tario Securities Law

was

time

in

up

is better than money in the bank.
Steel users are becoming a bit
trade

weekly.

price boost

The

The New

V

Situation

York

touchy

on

growled

prices, declares this
"inflation"

when

viously

a

The increase of 40 cents
shock to the can companies.
/

a

against higher

labor costs

companies

can

market

not in

are

they know
favorable

*

coming. Further, the
bargaining position in a

are
a

as

marked

by recurring periods of shortage.
Booming activity in the oil and gas fields is straining industry
capacity for oil country goods and line pipe. Steel—or lack of it'

may

year.

be the limiting factor on the number of wells drilled this
For all intents and purposes, order books are full for the

balance of the

The

Light,

ternational

Utilities

reiterated in dealing

as

Corp.

pro-

with theLong Island Lighting and
County plans,
have
of

imposed

as follows:
the requirevoting be-

cumulative

believe that, where feaprovisions for cumulative
voting should normally be inciuded in the plans of reorganizacause

we

sible,

ample, after the New Haven contest, despite management s loss, tion which have the obiective
cumulative voting made possible
others
of correcting inthe carrying-over of seven direcequitable distributions of voting
tors to check on the newly elected
privileaes Inclusion of such pre¬

amLg
^LTon

case of

facilitate the

t

board

was

is

sentative
0f

desirable?

that
of

not only to
choosing of an initial
reasonably repre-

is

the

different

groups

security holders who may re-

Legislate that would forbid ceive but also to effect a und« the
voting^securities minimum
plan,
,

make

opportunity for future representation of any substantial minority
group that may thereafter become
It concerned with the way in which

had been mittee on State Legislation.
York, butcontends that there are no com- a company is being managed."
apparently died following the ap- pelling reasons for upsetting longAlthough
the
Commission
is
pointment to a judgeship of their existing corporate arrangements charged with administering the
relied on by stockholders under statutes as
sponsor (Senator Louis L. Freedthey exist, and not
man of Brooklyn).
the present statutory authoriza- with
attempting to formulate
The new New York "anti-" bill, tion; thus unfairly and needlessly them, it may be assumed that this
up-ending stockholder expecta- expression represents the current
in addition to combatting "Raid¬
tions.
This
would
particularly thinking of Chairman Armstrong
ing,".;, would have the effect of
cause abuse in the case of closely
and his fellow Commissioners.
"
permitting
the
State's
utility
held companies,
not warranted
And this ^ to be in line
companies
to
escape
from
the
any
evil
that
has
been
cumulative voting obligations imwlth the tn,nd _ albeit o( y„y

However, steel producers were merely protecting themselves

steel

bills to
mandatory
in

introduced

base box apparently came as
.

two

procedure

accomplished by

ceedings,

Board, to check on the
doings of the insurgents. For ex-

Cumulative voting is now permissive in New York State. Pre-

-

been

the cumulative feature is also
formally disapproved by The Association of the Bar of the City
the of New York through its Com-

,

inventory

announced for the April-October price contract

was

period.
a

so a good

'

companies

can

event,

any

effect

policy and philosophy in the In-

°*

voting for the first the body of
15 directors
expressly permitted.
thrown out in toto.

was

Holding

To

Commission spelled out its

group; whereas, in the
New York Central, lacking
enacted, the cumulative voting machinery,

On-

new

1935.

of Standard Power and

you

cumulative
,

But steel consumers cannot afford to

Steel prices will go

unless

Utility

of

disapproval of plans
where cumulative voting has not
been provided for, as in the case

unitiated

Canada, when the

*

gamble.

it

Public

This has

tion on the

definitely mandatory
formally permitted, it is as-

SEC

indicating

ments

neither

nor

supply is another critical item.
What Detroit has given up in
flat-rolled has been quickly snapped up by other consumers.
In
fact, one of the independent carmakers is feverishly laying in
inventory because he is afraid to be caught short when new model
production begins.
The chances of a peaceful settlement with steel labor are even

perhaps

A. Wilfred

the

cerned with corporate setups.) .7-'.

lative system is the only means of
theur retaining some represent*.

17

"Associations." In states
is

This is about double the prevailing mill base price. Structural

the

by

other civic

reply

vote,

the

Kings

Massachusetts
states,
including
now, where it was formerly forbidden excepting in the case of

point the other way, with consumers paying
premium prices for plates—$200 and more per ton, delivered, con-^
tinues this trade magazine.
'

or

in

stock

in

£,®l®?jfng fractional parts thea cumuof Board
^each year in rotation)

cedure is per¬

ever

They

some

sta^er, syst+em,

to

begin June

majority

of

simplification through its Section
11, the Commission, acting quasi-?
judicially, has been administering^
the statute to effect cumulative
voting in the plans., (The Acts of
1935 and 1940 comprise the only
Federal securities legislation con-

that
the
Directors' proper function is to lay down general policies; and not to be concerned with
detailed, management operations.
They also point out that where
the incumbents have lost their

prospec¬
'

of

.

While

decisively

opposed

groups.
Board of

the

as critical as
been, states "The Iron Age," national metalworking
weekly, this week.

the

vigorously

representatives of

1957. The pro¬

it has

areas,: is

and

■

At that, the 62,600,000 employed in the week ended Feb. 18
topped the 59,900,000 job-holders in mid-February, 1955, by
2,700,000.
v
"v; '
Steel

„

obligatory
in
22 states, with

;

,

restrictive Bill's proponents that
should be unified,
and that minority representation

War. Now it is

agriculture, construction and retail trade.

in

.

premise of the

Citizens Union of New York and

-

•

companion

management

World

Position

Company Act

First

5

,

United States Department of Commerce
Labor Secretary Mitchell blamed the job

The

The

is

Cumulative Privilege

-

minority interests."

.

larly after the

mid-February

.

this

of warefare corporate.

states particu¬

rose

Indiana

*

in

appurtenances

.

Against Restricting the

method
for
electing
directors, initiated in this country
back
in
1870,
was
made
a
succession
of
mandatory
in

and New York,-where
reported in the construction, apparel.;

and automotive industries...

*

a

other

This

unemployment insurance and the level

same

California,

.slight labor cutbacks

showed

week

ests must be stopped from their
The only place where the Se¬
destructive operations."
curities and Exchange Commission
* V
*
has jurisdiction over the question

era

year ago. The Central Industrial and Southern states reported
the most noticeable* gains over a year
ago.
' V
;
^
1

employment situation in the latest

Banking and Currency
adoption of the legisla¬

on

tion,- contending that it "would
mean less democracy in our bank¬
ing system, the perpetuation of
management and the exclusion of

as enabling
promoters to
"bedevil the corporations," and
that "professional minority inter-

State

and

a

/The

mittee

vealed

Legislature,
again
highlights this important question
midst the charges and
countercharges about corporate "raiding"

a

fractionally
15% higher than that of the similar period
on

so

York

period
slightly improved
trend, with production gains reported in the automotive, lumber,
food
processing and oil industries. Manufacturing a week ago
increased considerably above that of the like period in 1955.

Wednesday of last week registered

bill

association

to prohibit cumulative
voting in the election of directors,
recently introduced in the New

Total industrial output for the
country-at-large in the

Electric

,

CORPORATE VOTING AND "RAIDING"

\

on

•

By A. WILFRED MAY

Index

Business Failures

A

ended

•

Auto Production

Industry

individual

-opposed

Commodity Price Index
Food Price

and

each

provide.
Senators
Lehman,
Douglas and Morse of the Com-

Observations.

Output

Retail

State of Trade

\

5

New

.

year.

posed by the SEC At the time of
simplification
under
the

uncertain

Middle, Eastern situation is forcing Americans
domestically7
and in South America.
This increases the pressure on domestic
sources of steel, concludes this trade authority.

their

oil companies to take a closer look at their position

~

dissolution provisions of the Publie
Utility
Holding
Companies
Act

(as explained hereinafter).

^h
l°n&-t€rm character—toward ever
clearly concludes that the permts- broader adoption of this instru"t?tus constitutes the happy menUliiy ot "corporate democ¬
slveA.^,iU
medium.

racy."

Mr. Williamson's legislative at-

"

failures

Business

climbed

15%

January

in

was

January since 1941.

-

•

;

10,000 enterprises listed in the
Dun & Bradstreet Reference Book. This compares with 42 in De¬
The failure rate rose to 46 per

cember, and 41 in Januray 1955.
below that of

prewar

The current rate is considerably

1939, when 70 failures occurred per 10,000

3%

over

1954.

than

dollar

that

volume

of

Liabilities
in

Bill,

Senator

■

tions whereunder each stockholder

enterprises.
The

introduced by State tempt in New York was preceded
Form C. F. Hathaway Co.
Pliny .Williamson
(of by the Robertson Bill passed by
WATERVILLE, Maine —C. F.
Scarsdale), which proposes to take United States
Senate, but reeffect Sept. 1, 1956, but which is ceiving no action in the House, Hathaway Company is engaging
in a securities business from ofstill -stqcjc in, pommittee, would It would eliminate the
present
bar the certificate'of Ihcorbora- mandatory
requirement • in the fices on Appleton Street. Officers
Bank
tion from embodying the provi¬ National
Act, and make are Ellerton M. Jette, President;
voting
permissible Harry L. Bickford, Treasurer.
sions obtaining at company elec¬ cumulative
The

reach .1,048,

to

highest monthly total in the postwar period. The level
12% above that of January 1955 and exceeds the level of any

the second

of

liabilities

December,
totalled

December

in

all

and

was

$42,900,000
size

failures

of

the
and

groups

in

January

rose

heaviest since March
more

numerous

$100,000.

Concerns

were

under

failing with liabilities less than $5,000 rose 34%

above those of

Continued

on

page

58

is

entitled

shall

to

equal

which

as

would

he

entitled to

votes

many

the number

as

of votes

otherwise

be

cast

multiplied by the
number of directors to be elected;
and
permitting him to cast all
such votes for

a

them

distribute

single director
among

the

For Banks, Brokers Dealers ONLY

he

as

other

In

may see

ordinary voting to choose
of

Walt

Disney Productions

has

one

shareholder

inee.

For

on

is

Request

new york hanseatic
Corporation

a

board
stock

allowed

sufficient

a

example,

10 vacancies,

Copy

to

to

cast
nom¬

there

if

10% plus
elect

to

single

one

orie

are

vote is

Straus, Blosser
MEMBERS

DETROIT

NEW

STOCK

is to permit Board representation

ESTABLISHED

74

1914

Trinity Place, New York 6, N. Y.




to

stockholders with less

YORK

EXCHANGE

•

EXCHANGE

AMERICAN

than

39

SOUTH

&
•

McDowell

MIDWEST

STOCK

STOCK

EXCHANGE

EXCHANGE (ASSOCIATE)

LA SALLE STREET

TELEPHONE ANDOVER 3-5700

•

TELETYPE CG 650

a

CHICAGO, ILLINOIS

majority.
Mr.

STOCK

director.

The main purpose of the privilege

HoitRsseS Company

private wire to

in

vote for each vacancy

all of his votes for

study

direct

the installation of

of

of

share

each

a

announce

be filled; under cumulative voting
a

A

directors,

pleased to

or

fit.
whereas

words,

are

num¬

ber to be voted for, or any two

them,

We

Williamson, who introduced
YORK

his Bill at the suggestion of some

NEW

New

MILWAUKEE

York

City lawyers, agrees
with them in believing that the
cumulative voting privilege is re-

GRAND

RAPIDS

KANSAS

CITY

DETROIT
MT.

CLEMENS

The Commercial and

f

1

5 '(1294)

gal" trust funds was not allowed
This did not.
.mean that trust companies never-

..in New York State.

-

The Institutional Investor

-

Television and

bought common stocks. They were*
-allowed ~ to
purchase, common
stocks where the donor of the

...
*

Market

Looks at the Equity

Stock Portfolio

General Manager of Common

IJ;

r

"

of America

The Prudential Insurance Company

fr<

Corporation►

trust.

plan's*.-

pension

purchase

could;

J l Mr. Carmine Jbelieves color-television will become: (1) an>.y'J
A important influence in the mass market at the end of 1956;. 4 .
-(2) a great new business for electronics industry; and (3) ;.

'

trusteed

In

'.they

.

Industry's Dynamic Future

i

trust, or the testator, gave them
Iv
,
By JAMES II. CARMINE*
that authority in the trust agree;'-'jPresident, Philco
ment or in the will covering the "
•

V:!.

OLEY*

By ROBERT C.

0ZX!

Financial Chronicle.. . Thursday, March 15, 1956

common'

a

stocks if the people who' set up ■
portfolio manager believes , long-run institutional
investing will reflect country's growth and need for equity cap- • T-f. the trust gave them sucji authority.^
or directed them to do soV
HowT; £ ;ooen new avenues for advertisers. Chides economists for their
........
ilaly but expects, for the present, a slower stock purchase rate •'
ever, the New York law ..did not'J.^v: salesand price predictions in underestimating the growing
of increase by institutional investors as a group in view of"
^llow trustees ia invest in equi-; v
in; the economy and the accompanying • consumers'
ties otherwise. This undoubtedly^6
,
■ 3
,
li
i-r
narrowing stock-bond yield spread. Largest single segment of
: demand for better commodities and a more enjoyable lire.
had an effect on trustycompany \
institutional investors in common stocks is found to be the
'

Insurance

i

.

*

t

'

-

cited

are

relatively small.

as

,

television-appliance industry is forecast.

thinking and the New York cor^X't'^ Positive growth of the
^- and heavy color receiver research investment costs are expected ✓
porate trustees for pension;, plans
did not do much investing in com¬
to be in balance with production schedules by 1956-57. Philco
mon stocks for such accounts be¬
President discerns a marketing challenge to help keep "our
fore 1950. Boston, which had had
world economy at a high peak."
v
A
the prudent man rule covering

'companies' purchases

Mr. Oley1 describes problems

-

,

arising from valuation of common stocks for actuarial purposes
a
market value or cost basis compared to fixed
investments and fixed interest rates.

on

r

Institutional

com¬

such

with the vol¬

extent compared

an

in

investing

stocks has increased to

prior to 1950 that this development and its

ume

upon

the stock mar¬

a-

"

j,

"

talk

made

nr.m

.

President of the
Exchange, in a
October, spoke -of

in

keen

resultv of

a

compared with only 300,000 fami-

competi-

i

..

tjon, our industry is in a- period lies back *in 1936. - Meanwhile,
of intense creative activity. Every, millions of families in the ,lowers
company in the industry is bring- and v middle4 income ,4 brackets,
ing all its rewhere there is little tax on -intrebled
of 35% of a trust's assets in com- AOS all its rehave- doubled
come,
their net earnings.
mon stocks. Abouti;he same time ?0u^ce®. V5
.there-was a great discussion a of) bear to satisfy
aggressive in this respect. Then
in 1950 the New York law was
changed allowing the investment
qqw-.

n

or

Stock

York

As

stocks J.v/i many years, woo more
for many
was

Keith Funston,
New

common

atvjcrva

to go around,- but
is there enough new equity money
to fill the demand from industry?
stocks

enough

,

effect

question of are there

it won't be U
a
""'4 "
"V.

"

in

investment

trustee

mon

.'this subject in life insurance
healthy
cles and the next year the NewaPPe"
York life insurance * law / was
1 e j;or our
subject
of
a
changed to permit the investment
u c. ,
large amount ties by 1965 and estimated that of 3% of the assets of the insurSP;intto
o f
discussion the additional equity money which ance companies or; one-third cif the home and
recently. Some institutions were likely to furnish Surplus, whichever was smaller," piake for betcommentators
in the next 10 years would meet in common stocks.In both the
A1Y1 n g*
have made only about 38% of the country's banking and insurance changes in - ^here, is
no
rather alarmanticipated needs. Some industrial "the law. I think the change was -Question in
ing statements leaders have placed the figure of''brought about by a setof cirf
J1?. mlndW
concerningthe required additional equity money cumstances in the investment mart"':*** s activity
James H. Carmine
scarcity of even higher. Theron W. Locke of 'kets. Bond yields were very low,• ^hl ,co^tinue
Robert C. Oley
available Goodbody & Co., in speaking to Triple A corporate bonds rangr tor
yXlC2CI years
X
Stocks
in
the
a1nn(fin
Avnn<i(i<Tnn
4 Wki4/\
inf ffdm
tfl
^*1630, tO pTO —
stocks in the electric utility executives at White ing from 2.50% to-2.60% basis. duce ^ continuous series of adfuture if the trend should conSulphur Springs last fall, cited Common stock yields, on the other vances
new products, new featmue. On the other
hand, we have industry proje tions that t ity -hand, for even the best companies tures an(j new designs to'meet the
students of business and leaders
would double their generating ca- would, for a diversified portfolio, needs and desires of our
people
.Vy W1° clte Pr°jections pacity for the next decade and Sive a yield of over 5%. This
^ home and abroad.
as to the need for
large amounts double it again by 1975.
He made a great deal of difference •
rnmnanv
laree or small can
of equity money m the future
and -pointed
out that this expansion m
the income anxd- Pur,?h*asl.n^-^
r'each
are
concerned
as
to
ket, both short
and long term,

™

—

has

the

been

getting this problem in its pboper

y,

perspective. He spoke of the possiunity or triemeea by corporations
for some $80 billion in new equi-

^

^

^

—JT

———

^

— r—m

.

—

for

the

supply of equity money is coming
irom. Obviously these two
camps
ought to get together. Those that
claim

there will

'stocks

be

a

scarcity of

point to the growth in net

purchases

of

stocks

common

by

■"institutions"to $1,500 mill'o.i esti¬
mated by

the SEC for 1954.

This
-

compared with
SEC
figures of
'about $1,200 million as the amount
of new

for

cash

•'

•year.
'

I

that

.V-,-

that

agree

it

is

cause

—

-

,

reciuire

common

'

y

Current Issues

much

So

the

for

;

range

turn^to ^the" current'portion!'6 The
SEC

figures

for

issues

stock

suiu

issues

sold

new

for

common

cornorate
H
cuipuiaie

xui

for

allowed

extent

long

-

,,
ru.

i

i<5

nn

Riirh

ago—in some industries the time
can be measured in months—we
heard

thinff

nwu

a

that stands as proof of
converted,- will •
from such sources
for
vcar-the opportunities which exist for
apparently ex, - turn into about $1 bU ion worth ...t on y $ 30
ceeds the new
company with
new
supply of stocks. x>f additional common stock.
XT
4-4*
..-sAlso,o wm,'n<*nocc
hicr rhan^e occurred in the think"However, it reminds me o£ the on the
product ideas and a. willingness
suoply side we have more .big change occurred ip
discussion m 1950 as to how the
to ventura boldly into the market
recently had the first Ford Motor mg °f
nmmittpe

nlacinc^^theih

company

th?

«130^iniOn

dySamic

...

AITTfii^rAt*

»•

-

^

~

-

t»»/v

terrific

flow, of cash

insuranre
.vested
; cused

industrv

in

the

would

discussion

This

life

he

fo-

was

the b5nd market and it

on

Company stcck issue sold to the

in-

nnh'ip

We

do

■'the

sion

not yet have final

cofpo^e.^u^lner™.na1

funds and

Thev

accounts.

total

-

fbout $6sS mHllon!

amount of
-

' in

> ; common

stocks,

.

for rthe

^

'

lace

t

fo^_Per could
ld?
now

u y
ouy

tru^s ahead for such

a

our

distribution and at the retail

leyel

becoming progressively nar¬

were

much so that many be-

rower; so

to COmplain that all the profit
wao. being
squeezed ;out of the

gan

In

business;

^gje
**

competitive

the

for volume, many unvuiumc,
uiciiijt
uii
sound and unprofitable merch^ndi ing practices cropped up.'
iui

struggle

_

^

,V;« Now, «)hat are the opportunities
wnat are tne opporiunmes

8."

'

some

.

-

.

hl

t

av

lf<f

that

of us, both in the manufacboth in tne manuiou.

growth industry?,:flltW

^c!1. wer®_. ^^d^to^^aWVitaowU is fashionable to^be

esti-

price.

entire industry into
a
dangerous position.
Operating
margins both in manufacturing,
leading

1954, rose to $1,840 million for the

<iih,rih

deal .about

great

a

beaird f ,glf lot ®about cut-price,
?rl!'
We heard
We heard aclot about yut-price,
dlsc°u£l£ouses and the like. We
J LnSSfl f
f!?1/
l
little cheaper than OUT COmpetla

....

thought that the demand for stocks-when
ultimately

contrasted with the

,

.

companies

insurance

account, which I previously
mentioned as $1,200 million for >

Thprp

_

the field There is no such thing
new without
as an entrenched and unassailable tors features. regard to quality or
position in the electronics or apThe
emphasis on
price was
pliance business.

'n reducing the costof life intrance and in offsetting the ris• in£
overhead costs of operations

cash

fiplrl

thp

io

demand for a low price. Not long

Every new idea which finds its
way into a marketable product,
help challenges each of us already in

rst

are

direct outgrowth of

a

features, as

life insurance

companies, it would be some

is

believe,

of its competitors during this period of extraordinary innovation.

personal trust accounts and in
the cost of pension plans.:'It was
considered that even to the small

of

we

this higher income level. That is
the demand which we find today
for quality products and special

power, of the incom6

huge cash sales of

if

,

'

stock.

by income stand¬

appreciate fully the potentials of
today's markets.
We
are
experiencing a phe¬
nomenon
in marketing which, I

- What
followed this .change: in
Optimistic Outlook
the New York law?^The major life
,
first 10 months of 1955. These, of insurance
companies wereyvery vT speak with considerable con¬
course, do not-include about $650
slow to get into the commonistock vlctipjl-and. feeling on this point,
million of American Tel. & Tel. market and their purchases have because for more
han 30 years
reiauveiv tniaii
for convertible.debentures 1 Which, .been a relatively small x^wi; the*.I- have been associated with. a
converiiDie f aeoentures 1 wnicn,.
factor, urj;ri| "<ivc uctn assuuaieu wmi

issues sold

account

Enough Stocks?

;
T.

stock

common

corporate

would

who

us

appliances

markets can¬

1935, 1945 or even 1950.
entirely new

benchmarks

of

set

•

"

where

Our

We must establish an

.

*

of

sell

and

not be evaluated

ards

of

those

to

home.

the

y:

tremendous

of

are

manufacture

,

-

facts

importance

q

^

New Demand Type

.

These

awun.

.

1

-

,

trusteed funds whereas life insurance

^

^

.

r

di,trihutm, end. have

nnH

opl g^abte

'th? savim»s' of 7he ^oDl^Sacei ' ma'es as to'iS'purcha^ortomfny cases they did-Iii timistic about the future. I share wehave'found'SIat thereisareai
volume
market at
legitimate
'^Kl^^Sl^tutions. It must be remembered :°*!:ir.tr.u^a^d a.d^sow.8T:0l^ in the general optimism. But you volume market at a legitimate
mid*1 orter'^insTtutfoM6 uxml^'ex5 ' that these "iiistitutions'ifc^bt *aU'i?J'her?.
lrust companiss>»i gentlemen want'to know the fea- p„fu for^odernddesign?for'adi"
insitutions would ex-, onprat(1 the
heen limAine common.stock ho'd- son whv.
y
%
■
-■
onerate thp
a

ceed

the

demand

for

samo
same

borrowed

wa„
way

or

S01\Wlly-

follow

of

the

demand

for

ness

build

homes

country grew.
The
mortgage money to
Our corporaUA
UU J.
d"

grew.
v

^

"•

IZ Z »TZtPX
grew to such
extent that in
ucn

1953

had
d

an
an

extent

tnat

In

period of relatively
tight money Surveys were made
y.
within the insurance
industry and
we

_

•

with the astounding re¬
sult that the industry was so well
up

committed for loans for the fu'.ure
that it had to put a check-rein

"S,^lViti^:,Maj0r
tions
?"

net

purchases

lnprOQCPrl

my

r*"',

of

rTirrin

occasional

^

^

•

For
tnistee'1 n^nsion funds thev a^-

stocks

VISPCl Cll0riLS

l^T'rrY^

thp

cr

T

common

disifuMions ?wUh
TTjT i,Vi"*

^.^c range of 20 to 35%hiofphutcontributionq pnrh vra-

s

S'j

ties

^pfQs^r^rised company conimon V. b
trust lf the rate of in~ ect'
prpnco.nf
crease of

stock
in

trnct

nnmnonv

1954

was

Particularly

older trusts
commorr

nrm-imn-n

•

investment

as

great as'

as

to

tO inV6St ^O^n6W316r^
crfh

This

sing}a
SJflKl

then^

of
4-1

segment
&e IIICIH

po^mon
'U
(IIUJ1

?.c SU jYey las;

with^ weH established y!armlatel^f bnvdtLUrcCorno?a?e
,

stock positions there

TVc'ndcnfv'Yn

;from
trnnv

your

tomed

most optimistic

prosperous

United

I put it very simply. You

states.
nn/4
and

a

am

to

opeaoiolof
associates are oaaiic»accusspeak of this change as

J

OJ:wu",

C0rp0ra-

divisions to cuthaidr

quality.

As

to dte the Our
company.

largest selling re-

frigerator today is not the price
i
,r
-— 1
l t _ x
leader—the stripped down model,

•«

-

Today, our largest selling refrig-

loaay, our largest seiimg reirig-

Aho, rising level of income. You erator is the big, 12 cubic foot caare
pacity, two-door refrigerator with
TTttot-.
>• ^ware of its significance,
4V.o rictr rst l-.QiV.rr
r

i-qqq_

o

T!"T1"54','-v'instituTlonaI!i^'ven a. "1C ^*.'C d being rePe" separate storage and freezer cornJtitious, I want to emphasize that partments, completely automatic
lnvest(]r^

the

bpcarpp the lar<*-

ing

I

features,
for
genuine
an example, I want
.
.-

vanced

...

reason

the most important market influ-

ence

wasthat there are fewer poor people'

Pp.T.ion f'mds cmornit.^ to $530-

rw.

y years ago

rnmrrcn

;®penfully
$380->vhe^ ^

the order of $100 to *200

|n

its operation, which sells—not

ln America today is the fact for $199.95

fclluv

the new deal

>"-hrnik ntt
lf54'
amounts' of divisions to cutback common stock IIUiU"n 1U
excescm ? n"1 honefnflv talked about a time
every
American
family
holdings- -The pension iund'de- 1 purcha^s bv onen-enci mvest-pnt
partments
that some of"Hie r,arfmorif,i of banks have reduced, million"for" iVni"vear ~To~"some would have an income of $2,500
> comoame^ estimated at about
in
some eases,
the percentage cf
,™r 'l fj,u "
companies were
for the a
yearToday- that is not a

looking for large

money to

hsre™reCs0XwfngThVaet SS'r!

a

•

came

The

to,f> <>**!« <*

capital. What happened? The busi¬

....

in
™

or even

$399.95, but

tne
^ou 10 $500 urdCKei
the $450 to ^uuu bracket

husky

sum

of

money

—
-

a

for any-

body's family!
How

about

television?

Not

economists
life insurance
were warning us of saturation in
h
cash additions ♦« pension trusts
to
practically out of loanable funds,
nension tmsts mav have been in-'dream: " has become a reality, television. We were told that the
especially in any such quantities currently so invested. To under¬ Pated bv a caTcMn"-un pr"c«s A family getting $2,500 a year is people who could afford the high
stand this and to understand how
as that.
^^qq
As to the present ques¬
if
th«
bivP^tniAnt now
exception. More than priced sets were rapidly disapprofessional institutional invest-' _,nll.nv vv.qL.qv4 Hppi^pH that
tion of the supply of stocks, if the
&0 out of every 100 families have pearing; that the cream had been
ment men may be likely to act
observations and projections of
P°^cy:™*epra ^tirn was proper an annual income. ovF.u$5-S00; skimmed off the market; that
in the future, I think we should
i.ome of our
notbi,nS was left but families who
forward-looking busiharltfn„,
anri
tni-Q
-JU1 a paiucuiar irusc a"a ii'i.ie ur — "
,
.
"
millions

found

many

years

ago,

our

™

a

pn

liess

leaders

:ind

a

.

are

reversal

*A" address by

correct,
here

Mr

to.

oiey

we

may

Perhaps
before

of

Business

Administration.




o

,

and legal changes involved.

Common

to

1950

stocks

SO-Called

years,

nurcha^ed ^ this country now have an an- could aff.ord cheap fable m®del
flmcsLfour._m.ll;1^_f?Tll„l5S leaders, the .only .th.e pric.e:

then to raise

nua^ income over $10,000 a year, receivers.
'
n-'dr-ss bv Mr. Carmine beEvidently, that is not the case,
not only 30% of new cash con- for, .he w.shin8.on Shar on M.rk.t- Last year the television industry
Continued on page 40 Washington,':aD. C.ar eUnS
asocid"on'
Continued on page 44
over-all

common

slock

po;i-

tion the managers bad to invest

the purchase
for

no the earh'er
common stocks were

jn

the

Prudent Man Rule

the

f^"nPrior
i-cbcol

voorc

a

fook^t the^roWems^praetfces

of

"le--

Volume 183

Number 5516... The Commercial

and Financial Chronicle

(1295)

wants

Similar Investment Techniques
In Real Estate and Securities

and

President, Webb & Knapp

:

,

i

ing of the corporate practice of dividing securities into several

;

classes

so

that investors with varying

accommodated.

are

r

make real estate

V

elusions drawn

This,
liquid

as

quality and size needs

as

(1) high grade urban land will

are:

-

^

♦

:w*

operating costs, due to the

-

There is really no basic differ¬
ence between real estate and sale
of

securities.

corporate

both

dealers

in

We

actual

are

earn¬

to buy
either for

it,
r

come,

the

tential

:

income,

the

future

po¬

might be real¬

Zeckendorf

ized from hav¬

ing
wise
It

mad

e 4 a

,

that

the

*From

I have $3.8

million, where COO left.

.

- -

satisfied investors.

Corporate Classification

?

land;

-wu

4-u

t

arp
are

your

that

*

Rare|y

securities sold

corporate

You sort of split them

way.

tional

see

with

company

a

$150,COO. "•

up

tit

The
est

Mortgage
,

....

X

'

,,

h?.Vn/t 1 gc

d.r,,nAnA

The $74°'000

the .building.. So I now have
new investor to find. I take this

on

Common Stockholder

/

*

Leasehold

underly¬

an

■

paid $3.8 million and are dividing

conven¬

from

v

We have realized $3.8 million,
$5 million, $3 million. Now we aro
up to $11.8 million.

I have these two investors, who

v

,

into chunks. I

up

an

extemporaneous address by
given at the dinner meet¬
New York Security Dealers

$100,000 is

to

$100,000,

say,

of

variety of

a

great inter¬
people. Let'u

million, is a;

$1

on

return/because

1.0%

a

he

says,

pay

r

to-think in terms of a $5

min10n first mortgage, because I

jieve
nn

in

rnv

inflation, and I make 10*/;
A
1T1ni;nn
r
tar my million, l

mft„pv

rmild afford tn nav that fellow
y. m?neY
Toi/
?'• ?y
teiiow am swinging a
not 31/3.% (0n his first mortgage," rtv witt
am
j
om
a
x«
erty witn

L

mat

$12 million prop-"

sons,

of

the

Association,

tech-

New

York

City,

March

,sa
,v
T
-ester in a 'fixed yield, Ugh;
?-iotA^A011^nJJi1
j', i grade security at more than tho
■ $35(),000 on $500,000, and I
Y returri} and the fenow for„
have stlR !°t?y $7H'n°A S'aaW^
_

of

rates

ing

note

"Hawaiian

term

niHlion.

-your.at 7 or 6%' I thought, first, I had only $3 milave
0 comp tfciy

Y including amortization.

Mr. Zeckendorf

decision.

might be of interest to

.

buy something at 8% and borrow

He is the common stockholder*
I
kept thinking about it: "and understand. The man who wants amortization.
The fellow just forward of him ij
thinking about it and thinking the underlying first mortgage, is •
go,we now have $740,000, pay- th?7:^referred'V stockholder
Th'»
about it., Well, things went on. I not going to have anything to do ing 7V nn ^ mini™ wn Ann Tf me
Preteried stocknoider.
iti^
The fellow who
kept on considering it. You can with warrants.
UjX AarnPfi
inrlndinff
amorti'va
fellow just forward of him is the
get a mortgage of 60% or 65%,' wunts the preferred stock wants
tion, two times, and I have got $5 subordinated mortgagee, and tha
but you can't find
anybody who nothmg .to do with common stock, -million. I just told you how I fellow just forward of him is an

'

increment that
William

interest

.

and

other

rea-

is not interested in the low
yield of the prior security,- The

9,

1956.

stockholder doesn't want

common

•

Continued

^ have $390,000 left.

means

on

53

page

darn

thing to do with any of the
fixed yielding securities, and th(
a

This is not

who lends the money at th(

man
on

offering of these shires for sile. or an offer loltiy, or a solicit it ion of
any of such shares. The offering is ntaae only by the Circular.
.

an

offer to buy,

xank

wants nothing to do witl
anything I just mentioned, neithei

Bank of America

?

c

And

^

;

>

X

:X;

.'X

v.-

,

v';

,

,

'V"

■

i

V.

.

>1"'

who

want

wants

The Budd

jus

He

forth in the Circular.

\

and

philosophical? routhow

our

coun¬

Rights, evidenced by Subscription Warrants, to subscribe for these shares at $19
share have been issued by the Company to holders ofits Common Shares of
12, 1956, which rights expire March 27, 1956, as more fully set
forth in the Prospectus.
^
-f4 ; r

per

record March

The several Underwriters have
any

be obtained from the undersigned only by persons to -whom

most

un-,

imaginatively financed property
any important investment na¬

'J
.
.

'

borrows

Dillon, Read & Co. Inc.

'

The First Boston Corporation

F.rst California Company

Copies of the Prospectus

If

I

said

guy

a

operator.

Harriman

maybe I
to somebody,
see,

Eastman, Dillon & Co.

Glore, Forgan & Co.

E. F. Hutton &

Ripley & Co.

Company

Goldman, Sachs & Co.

Carl M. Loeb, Rhoades
-"Let's

mysxf-

Lehman Brothsrs

Merrill

•

Union Securities Corporation

those

Wertheim & Co.

White, Weld & Co.

Schwabacher & Co.

-

V

,,

to the land owner is

Lynch, Pierce, Fenner & Beane

Smith, Barney & Co." Stone & Webster Securities Corpcration

....

The

building, having to pay rent
equity to the
land owner, and the land owner is
senior to the building owner. Well,

Incorporated

*

Lazard Freres & Co.

or

ing to somebody."

Kidder, Peabody & Co.

•

sell off the land
sell off the build¬

can

Drexel & Co.

are

two

different

investors.

kinds

.

.

F. S. Mose'.ey & Co.

Lester, Ryons & Co.
William R. Staats & Co.
Hill Richards & Co.

Hornblower & Weeks

•

•

-

.

Lee Higginson Corporation

Paine, Webber, Jackson & Curtis

Bateman, Eichler & Co.
Sutro & Co.

A. C.

Crowell, Weedon & Co.

Allyo and Company

A. C. Becker & Co.

*

Tncrporntcd

Blair & Co.

Central Republic Company

Incorporated

Incorporated

(Incjrporated)

Francis I. duPcnt & Co.

Clark, Dodge & Co.

Lailgarten & Co.

Dcniinick & Dominick

Fayden, Stone & Co.

Looker & Fay

So
,

I took this piece of real

conservative

meant

return—6%.

6%, $180,COO a
The property

million.

W. C. Langley & Co.

Feynolds & Co.

Mitchum, Jones & Templeton
Shuman, Agnew & Co.

Brush, Slocuinb & Co. Inc.

Irving L undbcrg & Co.

Spencer Trask & Co.
Dempsey-Tegeier & Co.

»

*

■

McDonald & Ccmpany

9%

ing has

Shields & Ccmpany

G. H. Walker & Co.

Laurence M. Marks & Co.

Riter&Co.




was

on

on

$3

earn¬

$10

a very

owns

Incorporated

Haligarten & Co.
F. S.

Hemphill, Noyes & Co.

Dean Witter & Co.

Horr blower & Weeks

W. E. Hutton & Cc,
Walston & Co., Inr,

Paine, Webber, Jackson & Curtis

Mose'ey & Co.

Robert W. Baird & Co.,

Cc,

Incorporated

' *

-

Drexel &

Blair & Co.

Bear, Stearns & Co.

Allyn and Company

J. C. Bradford & Co.

E. W. Clark & Cc,

First of

Michigan CorporaFou

A. G. Edwards & Sons

Farwell, Chapman & Co.

The Illinois Company

'

Incorporated

•

Wm. C. Roney

Newhard, Cook & Co;

Sutro & Co.

Stroud & Company

"r *

Brush, Siocumb & Co. Inc.

-

El worthy & Co.

Janney, Dulles & Co., Inc.

Prescott, Shepard & Co., Inc.

So I separated the two and kept
them apart, and the first thing I

Schoellkopf, Hutton & Pomeroy, Inc.

did

Westheimer &

'

i.

,

"

Chaplin & Company
Hayden, Miller & Cc,

Jenks, Kirkland, Grubbs & Keif

Pacific Northwest Company
The

■

J. Barth & Cc,

Watling, Lerchen & Co.

DeHaven & Townsend, Crouter & Bodine,^

'

William R. Staats & Cc,

Incorporated

Eateman, Eichler & Co.

'

Piper, Jaffray & Hopv.ood

Schwabacher & Co.

& Co.

Hill Richards & Co.

'
.

Laurence M. Marks & Co.

Moore, Leonard & Lynch
'

Lester, Ryons & Cc,

Johnston, Lemon & Co.

H. 0. Peet & Cc,

Robinson-Humphrey Company, Inc,

t

was

to go to a

mortgagee and

said, "Here is a very conserva¬
underlying
investment, $3
million, a top $3 million out of $10
million. On the $3 millioij, I want
tive

,

Incorporated

the build¬

big swing.

Underlying Mortgage

I

March 13. 1956

year

That-

million, $900,000.
We have $160,000 taken off, leav¬
ing $740,000.
ing

The fellow who
W. E. Hutton & Co.

""

es¬

tate, $10 million total, and divided
it, $3 million to land, $7 million
to building.
I leased the land at
a4

<

Langley & Cv>

Wertheim & Ctj

Union Securities Corporation X

& Co.

of

"
_

Hemphill, Noyes & Co.

A. C.

W. C.

Hayden, Stone & Co.

Glore, Forgan & Co.

Applied

to

Blyth & Co., Inc.

That is

1ncorporated

Dean Witter & Co.

be obtained from the undersigned only by persons to

second mortgage, he

Lesson

So

may

whom the undersigned may legally offer these securities under applicable securities laws.

say.

they understand.

^

Walston & Co., Inc.

~

a

hock shop

a

all
*

on

is

it does

all

because

"first mortgage equity."

:

is

•

agreed, subject to certain conditions, to purchase
unsubscribed shares and, during mi after the subscription period, may offei"
Common Shares as set forrh in the Prospectus,?
'

is the

real estate

But

.

•

■

the undersigned may legally offer these securities under applicable securities laufs..

Blyth & Co., Inc.

it

($5 Par Value)

•

And that is

ture,
may

Company

Common Shares

anything )

mentioned.

of

ICopies of the Circular

if

iu

f

try has financed its enterprises.

purchase
unsubscribed shares and, during and after the subscription period, may offer
set

395,096 Shares

be

on

economic

look.

'

The several Underwriters have agreed, subject to certain conditions, to
as

to

equity.
v
>If you add up all those securi¬
ties,^as you know better than I
you find all these different classej
of Securities owned by men of en¬
tirely different character anc

.

shares of Common Stock

doesn't

just

3wing

Rights, evidenced by Subscription Warrants, to subscribe for these shares- atx
$35 per share have been issued by the bank to holders of its Common Stock
of record March 6, 1956, which rights expire April 2, 1956, as more fully %
A
set /orth in the Circular.
■ v

any

offering of these shares for sale, or an offer to buy, or a solicitation of an offer to buy,
any of such shares. The offering is made only by the Prospectus,

wants,an eyelash chance for a big

($6.25 Par Value)

-

••f

wants

fellow

the

varrant

Common Stock
.

an

in, anc
le
wants his money back at-th(
and of four months; he is a banker

,aave

.v;

He

;ommonr

NATIONAL TRUST AND SAVINGS ASSOCIATION

;

y
This is not

he long term, the short term, thdebentures, the preferred nor th-

1,600,000 Shares
:

.

when I got back.

the current in--

or

arose

~

for? our real estate is the fact somebody for 6%, and 4hat 6% is, and lease it back from him. He
we^get the benefit of a lot roughly, $1.8 million.
'x
has 8% on $3 million, which ij
money, and you can
So ;I have $1.8 million and $2 $240,000, and we still have
$100,~

And
holiday.
The moment I got on -A. I am trying to understand
^ ap-lFyinS 10 unaerstana
that flight, westbound, I got to why is it that in your business you
do that? You mav onlv have a
wondering how I was going to
Sin
-iiy
/ .nave a
pay
that
$10 million for that $10 million comnanv and have six
building, and I had to pay for it-

spired
•

left.
■>

of

•

in¬

are

benefit

*

power-, and

we

only good,

t

will have earn¬

ing

is

the

get

*

hope

people

business

we

the charges on that leasesimilar to that which governs the will have a subordinated deben- new nronertv and I nlace a new hold J?
£2r „,ortgage 0f $5 million,' thai
IKS?*™
vr
Then it will have a common ?•
properly ana 1 piace a new 7% ^hat $350 000. I will pay t fai¬
lure
men 11 win nave a common
distributions in the sale of cor¬ ture
first mortgage,- called a. leasehold
n
thp iJh lca^p
Anri when
porate
securities.
This
phrase stock, and it will have bank loans, m0rtsaee on this Diece of nron'Z.
•i i5 f?a!
^ wnea
diui
11
win
-fL Svfn Snn *
* have Paid
that mortgage on
someumes
nave
stems
from
the. time
when we * and it will sometimes have war- P°rigagJ>
erty, and with $740,000 of earnings ih(x ipn,phnlri loan <&<=> million
agreed to buy a certain building rants, and it will have every other availabie, it shouldn't be too much
rent will drop by' $350 000
I beand I went off to Hawaii for n thing.

ing power, or
property that
;

borrow $2 million, at 3%%."
And I have already taken out of
Well, 3y2% on $2 million is this property the first $2.8 mil$70,000, and after deducting $70,- lion, and the $800,000, and I still
000 from $180,000, I have $110,000 have left
$390,000. ,

real estate in-?: ing first mortgage/ Then it will
vestments based upon the principle have a preferred stock.
Then it

nique"

property — prop¬
erty that has
an

to

real

.

•

(3) preferable to deal with low grade urban, suburban and
rural land, and (4) there are great, bold opportunitiesvin
!'
urban redevelopment.
;
;Ax:

''

the

multi-occu-

a

of borrowed

not rise

squeeze on

for

.

out

nor

construction and

in

money

Now, there is a first underlying
Preferred Stockholder
mortgage, and I have something
The next man to talk to is a
leverage.
that is just a little bit less under- man who would like to have a
,
It is not a free and clear busn lying, but just as secure, in the
higher return than 4%, reasonable
ness..
Our properties sell on too nature dffthis overriding income
security, but not without risk.
low yield basis, and they
always of $1107500. *
'
•*So we sell him this equity fcr
did.
The only thing that works
VWell, that could be sold to $3 million, and we give him 8£?
that

among

reach 1929 values; (?) ground rents and capitali-,
zation rates are same as 1929, in spite of increased taxes;
again,

-

/

x

other advantages, is said to
securi y investments. Some con- >

his

Our

ness.

because

Mr. Zecksndorf relates the applicability to real estate finance

$10 million all cash

pay

business

pied office building, because our
business isn't a very good busi-

By WILLIAM ZECKENDORF*

.

to

keep

estate

7

Company

Singer, Deane & Scribne?
F. S. Yartis & Co.
Incorporated

March 13, 1956.

Yarnall, Biddle & Cc,

.

The Commercial and

f
8

Financial Chronicle... Thursday, March 15, 1956

..

(1296)
double

nast

number

the

of

barrels of crude that it needs

I Dealer-Broker Investment
The

mentioned will be pleased
the following literature:

understood that the firms

of

chore

parties

history was a wearing
one, apparently, and stocks
paused for some consolidation
of the recent gains, once the
peak had been reached. What¬

current issue of the "Exchange Maga¬
year—The Exchange Magazine, Department
7, 11 Wall Street, New York 5, N. Y.
Atomic Commentary—Semi-annual report on status of industry
as
of Dec. 31, 1955—Atomic Development Securities Co.,
Inc., 1033 Thirtieth Street, Northwest, Washineton 7, D. C.

A

Brighter Future—In

zine"—$1.00 per

Energy

Atomic

Broadway,

120

the

"Behind

Market

Stocks"

Bond

List of 45 selected shares —
Wall Street, New York 5, N. Y.

Market—Review—New York Hanseatic
York 5, N. Y.

Corporation, 120

Canadian Provinces—Funded Debts

York, N. Y.

information—Yamaichi Securities
York 7, N. Y.
Japan's Motion Picture Industry—Analysis in current issue of
"Investors Beacon"—Nomura Securities Co., Ltd., 61 Broad¬
way, 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
Stocks—Current

Co., Ltd., Ill Broadway, New

Averages—Discussion

Market

Co., 50 Broadway, New York

market

action—Dreyfus

near

and

to

York 4,

Review—Bulletin—Petroleum

up-to-date com¬

Oil

ard

Public

Power,

Also available is

Utility

Saxton

Stand-"
Silver,
Virginian Railway, and Wheeling

& McKinnon,

Steel—Thomson
N. Y.

Common

& Co.,

a

Stocks—Comparative figures—G.

Encaustic

A.

Inc., 70 Pine Street, New York 5, N. Y.

Encaustic Tiling

American

11 Wall Street, New York 5,

report on Ohio Oil Company.

•

can

Department, Chase
N. Y.

18 Pine Street, New York 15,

Mohawk

Niagara

Tiling

Co., Inc.—Annual report—Ameri¬

Inc., Lansdale, Pa.

Company,

Company—Data—Bache & Co.,

American Machine & Foundry

York 5, N. Y. Also available is data on
Co., Plymouth Oil and Columbian Carbon.

36 Wall Street, New
Elliott

Anglo
25

American Exploration—Circular—C.
Street, New York 4, N. Y.

Broad

Automatic

E.

& Co.,

Stoltz

,

Canteen

Company

of America

—

Analytical Bro¬

chure—Glore, Forgan & Co., 40 Wall Street, New York 5,
N.

Y.

Basic Atomics, Inc.—Analysis—C. Herbert Onderdonk

Broadway, New York 6, N. Y.
Bethlehem
14

Wall

Street, New York 5, N. Y.

Central Hudson Gas &
Central

Hudson

Gas

Co., 1C5

E. Hutton & Co.,

• '

120

Study—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
Corporation

—

Annual Report

—

Collins Radio

Pictures

—

Bulletin

—

J.

R.

Williston

&

Dayton Power & Light Company

mostly

side/ The

on

ex¬

can't be too

Annual report

Continued

Dayton
page

71

the'individual

car¬

41/2-%,
counts

gree
an

which certainly dis¬
a considerable de¬

to

its leadership) in so

basic

doubly so

industry. This is

with the action of
than

was

crete, perhaps,

is the fact that

regard. Columbia Pictures,
instance, last year

for

rolled

and some up a gross of $88,000,000
Sic
SH
*
of the others were available against $49,000,000 10 years
Even
the
tentative signs
at a 5%
or better yield re¬ ago, when television was just
that these two trouble spots
starting to throw its blight
weren't going to be quite as cently.
over the movie makers.
Net
sick as some of the more pes¬
Highs in the Oil Section
has
moved to $4,900,000
simistic had maintained con¬
tributed

to

generally.
average, hav¬

toward the market

continued

Oils

feeling

better

a

when

market sentiment was
stand out in

a

fact

the

potential
ited,

was

shunted

that

its

vastly improved

future cles.
Frequently the

somewhat lim¬
the

generally into the background
with the favorite occupation
culling the list for

Olin

that

Mathieson

was

at

new

averages

individual
promise.

was

so

per

which

highs

ran a

cir¬

number
dozen or

day, including Ohio Oil
is also somewhat

unique in that it has

been sell¬

ing at a yield of better

than

ahead

yields of other major

oil pro¬
well

ago.
has

10 years

$3,700,000

against

The company, moreover,
not been unaware of tele¬

making

subsidiary, which

last year
total

grossed $6,000,000
is
to

picture-

TV

its

and

vision

expected to boost the

$11,000,000 this year

hardly the picture of a
Continued

—

down-

on page

71

of the

4%
one

the

good to

ing reached the ''magic'.' mark regard from investment

Co., 115

—

on

Some of

a

Southern, Santa Fe

Limelight Issues
—

at

and
-

eight times earnings
yield of; around

less than

Southern Rail¬
way, had something of a fol¬
lowing more closely linked

far away.

Broadway, New York 6, N. Y.




around^^;|^frgain level.

riers, notably

issues that showed

Corporation, 261 Madison Avenue, New York 16, N. Y.
Columbia

Steels have been, if not ac¬

regarded

pected
ports are living up to expecta¬ rail average was in position will be once the wage talks in
tions. In addition, construction
finally to exceed its peak of the industry are resolved in
awards
are
starting to in¬ late November. The rails have the inevitable wage increases.
dicate that the Spring build¬ been a definite drag since this
*
*
*
ing activity won't be quite as index failed to join the indus¬
The moving picture issues
dour as had been forecast. The
trials in their new high of have been noteworthy, too,
seasonal pickup in auto sales
last
December, as well as in having little general appeal
has yet to make a definite ap¬
when the industrials broke but even in this group there
pearance, but recall of the
are some issues that, at least
auto workers laid off in the through to higher levels near¬
statistically, merit a bit high¬
winter doldrums would seem
ly two weeks ago. More con¬ er

and

Electric Corporation—Annual report—
& Electric Corporation, Poughkeepsie,

Christiana Securities Co.—New

Collins Radio

an¬

*

*

*

was

the average when price increases are in
the case in the in¬ the offing, as they seem to be
glowing earnings re¬ dustrial section. For one, the at the moment, and definitely
were

omens

The industrial

v

Steel Corporation—Analysis—W.

*

Biscuit

pany

tax time

income

for

to indicate that it

e

m

*

•

*

*

favorable

the

Stocks—Survey with particular reference to
of
Ohio,
Safeway
Stores, International

Preferred

a

tually laggard, at least defi¬
in some quarters as well de¬
nitely sluggish as all the pes¬
flated under its high for last
simism over construction and
year. The fact that the com¬ auto making led to some dour

Favorable Omens

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

Manhattan Bank,

cash

The

N. Y.

Petroleum

than

when sizable conversions

&

Quotation

National

leife

other issue that was

might be expected.

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

yield

*

-

.

larly since the time is drawing

4, N. Y.

Over-the-Counter Index—Folder showing an

low__of

ing in foreign concessions, in¬
ygfeigh is good ac¬ cluding Cities Service, Rich¬
tion for an isau&vthat held for
field, Amerada, Continental
more than a year in a range
and the Tidewater group — a
of only around ^15 points.
roster of the oil giants,
•;.* :

>
of

its

this year of 1955 earn¬ sales. But with that expense ers that the
pessimism was
ings and dividends would still now out of the way, the new being overdone, particularly
could contribute their with the
warrant a level for this index lines
copper and alumi¬
of somewhere around 520-30 full share fto this year's re¬ num issues so definitely in the
The .issue
has been
before the list would be ob¬ sults.
limelight on a plethora of in¬
viously vulnerable. But the available recently at a 5% vestor support. U. S. Steel,
timing for such a move found yield wlftetF-Considering some the industry leader, for in¬
no
such agreement, particu¬ of the. other quality issues
stance, has been available at

—

Six-Year Economic Program.

with many of the
participat¬

degree

other oil titans in

tion

Nihonbashi, Chuo-ku, Tokyo, Japan.
Opportunities for Industrialists — Descriptive illu¬
strated brochure reviewing today's industrial possibilities
for investment in Ireland by American bankers, manufac¬
turers and corporations—on request—Donald Scully, Trade
Counsel of Ireland in New York, 33 East 50th Street, New

Japanese

the

❖

cho,

Ireland

a

tury.

Outstanding
January
1956—Brochure—Investment Dealers' Association
of Canada, 170 Bay Street, Toronto, Ont., Canada.
Foreign Investment Through the Japanese Stock Market—
Analysis—Nikko Securities Co., Ltd., 5, 1-chome, Kabutoand

points

was faced with costly estimates of their second half
problems in launching some operations. But the minor dip
new
products last year in steel operating rates which
To a rather large number of brought a moderate trim in
already has been erased, in¬
market technicians, a duplica¬ net profit, in the face of record dicated to
many steel follow¬

Broadway, New
Canada

National

else

from

signified, it at least perma¬
nently ended all the refer¬
ences to the 1929 peak of 381
that stood as a high-water
mark for a quarter of a cen¬

—

Francis I. du Pont & Co., 1

achievement

refining operations, a

month ago,

ever

Upham & Co.,

Review—Late issue—Harris,
New York 5, N. Y.

,10

around

bounded

market

send interested

to

has re¬

The * issue

nudging the strength.

industrial average to the 500line for the first time in stock

its

point not lost on those who
have been anticipating an in¬
crease in the price of crude.
Ohio, moreover, is linked to

'

STBEETE

By WALLACE

Recommendations & Literature
It is

for

THE MARKET... AND YOU

which

in the limelight on ducers;

is

Ohio

produces

Established ISM

H. Hentz & Co.
Members

DEPENDABLE MARKETS

Exchange
Exchange
New
York
Cotton
Exchange
Commodity
Exchange,
Ine.
Chicago
Board
of
Trade
New Orleans Cotton Exchange
New

Stove

York

Btocc

American

and

other exchanges

N. Y. Cotton

Exchange Bldg.

NEW YORK 4,
Chicago

•

Detroit

Miami Beach

Hollywood, Fla.
Geneva.

DEMPSEY-TEBELER & GO.

•

•

•

N. Y.

Pittsburgh

Coral Gablee
Beverly Hills. Oai.

Switzerland

Amsterdam, Holland

Number 5516... The Commercial and Financial Chronicle

Volume 183

(1297)

necessary in evaluating a
company's ^plans. But- too often
those projections overlook the ebb
course

and

of cash during the in¬
period, and sometimes the

terim

By KENNETH W. FRASER*

Just review for

Financial Vice-President and Director
of

several

details

methods

additional

obtain

to

equity is

convertible debentures in financing fast-growing firms.
Fraser contends current tax

established

The
is

field

corporations

of

tion

corporate finance

vast and varied that it offers

so

a

and

original thinking.

wards

Mr.

of small, growth

then,, we

dividuality

These re¬

that the in¬

agree

of

our

fiscal

own

problems

and objectives make
impossible to develop best "an¬
swers''
that
apply
universally,

come

com¬

your

free balances.

in the form of

intellectual

in

effect

satisfaction.

programs?

While 'certain

are

successful

which financial management must

of

keep

ect them

nancing
terns

may

fi¬

p a

t-

instance

one

cated

of

with

equally

good

results

in

must

its

resolve

own

based upon its own

objectives.

answers

problems and

< In
addition, in this everchanging world of ours, today's prob¬

lems may be tomorrow's answers.
We all recall the financial prob¬

arising

immediately after
companies were
replacing fixed assets which, be¬
cause
of the rise in price level,
then cost substantially more than
original prewar acquisition costs.
World War II

Depreciation,
costs

to

was,

as

based upon prewar
a non-cash charge

as

income, generating much less

cash

than

required for the re¬
placement expenditure. For many

companies, securing sufficient
for
this
purpose
became
quite a challenge. But what of
that problem now?
First, depre¬
ciation based
upon
new
higher
acquisition
costs
is
generating
more cash; Second, the price level
cash

somewhat

become

has

third,

and

stable;

Code

enue

acquisitions. As
the

double-declining-

bases to

balance

the new Rev¬

permits the sum

now

of the digits or

result, because
replace¬

substantially
original acquisition
eost has been greatly eased, one
seldom hears further learned dis¬
ments

at

.

prices

than

higher

sertations

of

sponsibility
funds

to

as

the

was

through greater
solescence

or

whether

the re¬

providing

these

accountants,

depreciation,^ ob¬

ing

additional cash from outside
more

illustration of today's

problems easing tomorrow's
dens.

bur¬

Several years ago one com¬

pany,

after enjoying a year
profits, experienced

of

cor¬

Those
raised I in

been

fraternity have

Capital.
the

integrity
developing

in

standards

for

fair

Capacity

simply means man¬
ability; the ability to
implement those policies in run¬
ning its business; the ability to
agement

make

profits.

Capital
ficient
mit

the

come

of

means

funds

to

company

financial

per¬

all

its

they be¬

as

as

a

I company

selling

will

apply

customer to which

a

goods,

will

so

An

New

of

corporations, this corporaby Mr. Fraser before the
Chapter. National Association
Accountants, New York City.

address

York

Cost




be

in

funds

Principal
ment's

cash

from

cash

tool,

a

flow

long-term

bases

short-

so ;as

to

but

required,
Third,

number

to

cash flow

certain

ning

as

expressed

by

the

principle is the need

planning.

Financing

exigencies

without regard
can

lead

of

to

the

synthesized
in

meet

moment

-

A

one

common

that the

com¬

presentation,
language
of

first

of

"sources

of

ties.

Just

fashions

hours and still

Management must set out to the

continue

for

own.!

has

ing,
we

as

in

..

to

with

do

have

we

such

autos and

fads

things

as

underwriter

company,

ual

time

present

debentures

are

to

a

seeking additional

company
funds.
Unless

those

satisfactorily passed,
assured

be

that

tests

same

the

tests

will

is under

announcement

of

offer

an

to

buy

issued by a utility which expects
a

slow moderate

be
■

of

a

sound

growth, they

and

effective

financing which

sion

will

not

upon

dilute

adequate

is impossible

to make

the

ratio

as

of

utilized
are

their

tional

credit

futilely

now

funds

from

vestors without
to

justify

to

the

just touch the sur¬

Continued

March

on

page

lenders

an

(formerly Winn dC Lovett Grocery Company)

in¬

or

adequate basis

Sinking Fund Debentures, 3%% Series due 1976
Due

Dated March 1, 1956

The
York
what

was

advice he

of

a

large New

recently
would

asked

offer

large corporation which

sidering the

April 1, 1976

Principles

president
bank

1956

Winn-Dixie Stores, Inc.

either.

Three

15,

$10,000,000

full,
addi¬

seeking

was

incurrence

of

to

a

Price

con¬

100% and Accrued Interest

addi¬

tional debt
was

very

financing. His advice
simple: "Never get your

neck stuck out too far."

no

more

Balance

important tool.
sheet

and

profit and
loss projections supplemented
by
ratio

and

other

analyses

are

of

obtained in any State in which this announce¬
only such of the undersigned or other dealers
lawfully offer these securities in such State.

The Prospectus may be
ment is circulated from

What he

or

brokers

as

may

Merrill

Goldman, Sachs & Co.

Lynch, Pierce, Fenner 8C Beane
Lehman Brothers

Childress and

Company

White, Weld & Co.
Paine, Webber, Jackson & Curtis

Hornblower 8C Weeks

R. S. Dickson & Company

Equitable Securities Corporation

Incorporated

Laurence M. Marks &. Co.

Stein Bros. 8C

to

the

conversion

many

NEW ISSUE

some¬

stock¬

corporations without

protections

not

thing from nothing, and yet many
moderate-sized closely held com¬
panies, which in expanding dur¬
ing the past several years have

conver¬

holder's equity. But when used by

circumstances to he construed as an offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.

forthcoming.

It

can

means

other

no

any

so

convertible

be

can

you may rest

funds

This

and

cloth¬

all the rage. When

individ¬

or

investor, apply the

the

entertainment,

or investor, be
bank, insurance

commercial

objec¬

or

.

have fashions in securities. At

the

time and

could

might offer
idea in meet¬

an

problems

fashionableness of certain securi¬

fast-growth

discussion

funds"

trouble.

to

the

in

so

years,

variation of

Financing Fads

all phases

dollars.

to future require¬
only

management,

of

germ

specific

The

upon

pany's over-all planning may be

for

the

recent

them

observations.

the

account.

in

some

of

more

However, before presenting
illustrations, may I digress

of

of

techniques which

used

for just a moment and offer three

the corporate objectives and plan¬

re¬

time;

review

those

deter¬

projection is based

should

of action.

tives of your

and

that

favorable

a

we

hope that

or

ing

also when these
required; and

be

been

in the

or

sulting ebb and flow of the cash

third

have

mine not only how much may be
funds will be

at

course

you

both

on

between

Because of the vastness of the
topic, I would prefer to offer

one

projection

under¬

we

difference

several specific

7

the

and

selected

;

Second, to understand and util¬
as

direct

our

public

know

we

posed
;

investor will

ize,

pre¬

competent tax counsel the
possible tax effects of our pro¬

seeking

borrowing

and

with

critically, will evaluate its
policies, management ability,
earning potential, and financial
stability.

ob¬

show the

either

the

of

financing,

and

market

and

and

for

projections to

the

inspect the com¬
pany's credit status both carefully

two then is
converting manage¬
planning into
terms
of

need

may

bankers

corporations

owner¬

placement; we
know the importance of the tim¬
ing of our offering so as to reach

First, to realize that the banker
or

of
the

direct

i

by

costs

method

be

independent

you r

equity financing:

taining these funds when needed.
the

\

us

difference

stock

common

analyze carefully

To

the

encountered

a

equation
we

of

of

stock, and of the use of
debentures for long-term financ¬
ing. We are aware of the need to

"how much"
that

investment

and

from

applied

required, and not at some
time;
or
the
difficulties
may

resolved

of

the

in was saying in effect was to be
the
following year, a
year
of careful to
preserve the company's
modest profits. As it entered the credit
standing, the cornerstone of
less
profitable year, its largest all future fiscal
planning.
single creditor was the U. S.
The first principle then is
pres¬
Government for income taxes due
ervation
of
the
corporation's
against the high earnings of the credit
position.
earlier year.
Actually, the cash
What is the second?
A topic
payments made to the Treasury
to which I have a special devo¬
Department in the second year
were greater than
its earned in¬ tion, and one which seems to be
come. before
taxes during that insufficiently stressed as a man¬
agement tool, is the matter of
same year. But what of that prob¬
cash flow projections. As a cor¬
lem now? Because of the qualified
porate money manager, I know of
pay-as-you-earn plan now apply¬

*

that

been

uses

some

prospective lender
he

excellent

ing to

when

due.

Just

.

of

other

will

the

ferred

cash

summarize, there are three
principles which may be generally

manager will
cash flow all

to

funds

of

and

interesting studies of

know

we

stand

auditors.
4

impor¬
timing—either the need
having cash funds available

tance

those

made

between

of

know

we

indirect

only after the

and

both short- and long-

alert his associates

suf¬

a

to

meet

obligations

these tests to
is

on

have

additional

of

"when" parts of the

mercial

bases, he is in the unique
position of having at his finger
tips the synthesis of all of man¬
agement's thinking expressed in
the common language of dollars;
and equally as important he may

ments

it

terms; of

to

;

terms

dustry;

intelligently examine ways of ob¬
taining these funds. It is at this
point that important guidance and
help may be sought from com¬

managements' plans, and proj¬

The

obviously

amount

financial

the

reduce

of

means

and

In

dealing with its customers, its
employees,
its
community, -its
creditors, and its stockholders.

sources.

One

the

taught that credit is based
three fundamentals: Char¬

policies

amortization

charges, or the responsibility of
the financial manager in obtain¬

have

management

be used on new
a

of financing

burden

more

is

position.

men's

If

;

'

-

amount

when

is

and

decreases^ your
then evident,

.V';

the

have

As is

cash;

into

long-term

with
the
vital
part
played by the factor in financing
a large
segment of the textile in¬

required, and

(b)

every
decision
by
management will have its counter
on

and

are!

us

familiar

required.
It

term

foremost

Character

•

of

•

mind. /May

acter, Capacity and
simple language,

company

there

principles

in

credit

who

j;pon

each

lems

and

credit

been

other similar

circumstances,

that

simple

continually

us

the
Kenneth W. Fraser

believe

debt

converted

short-

(a)

practically

financial

examine them?

First

•

I

poration's

be dupli-

may

of

consideration

several

we

in

used

the

of

payment

of

the

funds

account, incurrence of debt and
acquisition of new capital make

there be however certain
common principles which
may be
generally applied by corporations

.

most

versus

projections, the result will be
reasonably clear picture of-

additional funds available, but re¬

only
in
the
way
of
monetary
gain, but also

commercial paper;

ship;

When

cash

it

not

sales

as

machinery leasing

both

inventory increase, your available
cash will decrease, and of course
the reverse is true. Capital ex¬
penditures decrease
your
cash,
policies on dividends declared and
earnings retained affect

questions

"sale-lease-back",

is also true. Should your

converse

peculiar situation in the future.

exceptional rewards for ingenuity

your

standing increase as a result of
larger volume or longer terms of
sale, your cash will decrease. The

probably will not face such

If

affect

Such

all familiar with the

are

consideration.

cash position, either in¬
creasing or decreasing it. Should
your
accounts
receivable { out¬

policy drives risk capital to larger

at the expense
enterprise.

will

and

customary short-term sources,
such
as
bank
borrowings andl

dend policy and probable retained
earnings all must be taken into

some

pany's

in the practice of issuing

seen

moment

the

decision

following advice: (1) preservation
of credit position; (2) utilization of cash flow projection tech¬
nique, and (2) planned short- and long-term objectives. Dilu¬
corporate capital with the

tion of stockholders

a

subject
of
review,
its
long-term objec¬

targets, inventory policy,
physical facilities required, pos¬
sible acquisitions of other busi¬
nesses, experimental development
and
promotional
expense,
divi¬

balanc¬

a

face. We

ability,
periodic

volume

principal balance
sheet
items, and the manner in which
practically
every
management

J. P. Stevens & Co., Inc., New York City

Industrialist

merely

its
to

tives.

ing figure in those projections.

cash forecast is

of

short-term

flow

Principles and Practices
-

best

course

9

Eoyce

e

A. M. Kidder & Co.

48

The Commercial and Financial Chronicle..

10

classified and it is likely that cer- c
tain production information will-

Peaceful Uses of the Atom
And Piivate

Development
LIBBY*

By DR. WILLARD F.

Atomic Energy Commission

Commissioner, United States

of cooperation beEnergy Comjcission and American industry is
cae
of which
we
can
well be
The record

Atomic

the

t7/een

Our

proud,
v;artime

asso¬

ciation, based
c n complete
faith and un¬

a

J

Dr. Wii.ard

Japanese
was

-t.u

,

F. Libby

three

main Peaceful

the

atom

known

the

as

(1) Atomic power and heat;

cation

benefits

three

these

0f

rapidly

as

as

it

to

can.

next

The

cssure

primary objective—to
common defense and

our

the

j

al- erally known.

is long since over,

war

Ciough

scurity of this country—still reBut, in a larger sense, we

-ains.

to

able

i re

turn

our

small-/-;
/

and

company

Federal

control

si on.

The President vetoed

its

of

.•••

of

the

>

Commis-

Power

the bill, approving

objectives, but disapproving the "arrogance''
of the oil

some

/:

operators behind it. .Investi-

gations of this sinister influence on American

politics

have

gotten

applicant can demonstrate a signeed for the data in his

bad, indeed.

nificant

Bargeroa

NN:.

very

'

'

Carlisle

And

people feel

1 J

-

galore.

underway

this has made the oil and gas

••

-

business, trade, or profession. For ;
However, it should be of some comfort to them that the gas
in which
oroducers are not yet under the whim of; the Federal Power
Data are
Commission. In 1948, I believe it was, Congress passed legislation
required, a limited personnel seexempting these natural gas producers from Federal regulation.
curity clearance ("L" clearance)
In the Senate, this legislation was sponsored by Senator Walter
Confidential-Restricted

while

suffices,

Secret- f Kerr,

the

for

Restricted Data Agreement, a full "

("Q" clearance), based
complete background inves-

on

a

are

pending. New

AAAAaJ;

the

thoughts accomplished in unclassified form,

sources
tees are

amazement

Kerr,

ones

press

"steal," two terms which I have

as a

of Kerr, his good friend Truman,

To

vetoed the bill.

-

to hear the comments of Senator'

professed "liberal," though

a

never un¬

facility.

a

multi-millionaire, about his

good friend Truman at the time.

being received at the rate of60-70 per month.

are

Then lo and
;

behold, the Federal Power Commission, its

mem¬

bers

completely beholdened to Truman, announced it had decided it
should not take jurisdiction in the matter of natural gas producers.
The leftwingers set up an awful howl.
The

matter

finally

the

before

came

Supreme Court and that body found that,

United

august

yes,

States

indeed, the Federal

Power Commission did have to take jurisdiction.

''//'J'4

So it was that legislation exempting natural gas producers was
again sought and the legislation was passed. The President again
vetoed toe legislation but he said he agreed with its objectives; he;
just didn't like the incident of the oil employee strutting his stuff
; i

guidance and assistant in finding

.

in

./////>

/-"/A;

.

this legislation, the leftwingers went
and pulpit denounced the legislation as a
of

You would have been interested

*

the Permittees may also obtain ;

The dissemination of this information is, of course, most easily

and

man.

derstood but which the left wingers use with unusual

the AEC field organizations where

information

work

to

passage

"give-away" and

ligation is required. At the pres- ent time, 686 applications for Ac- ?
cess
Permits have been received,*
the balance

big gas and oil

a

'After/the

c-learance

the

in

Avar

oil

an

from
•

scheduled item in our Technological developments being
Pacific. The atomic new, the first, and at this time
The holders of Access Permits
Tomb shortened this conflict; it perhaps the most important, task represent a wide cross-section of
uade the invasion of Japan un- the Commission faces is that of industry as well as a wide range
Vacessary, and saved what has industry-education
in the new 0f potential fields of interest in
1 een estimated at approximately field.
The new techniques and the atomic energy industry. These
cue million casualties.
'
new knowledge must become gen- Permits are administered through
the

with

a

sudden, had "hit it

a

Notwithstanding this, the Senate went ahead
and passed the bill exempting gas producers

this

mote the development and appli- 0f which 602 have been approved;
mankind

.

lawyer who, ail of

those Access Agreements

are

polymerization reactions. It is
the Commission's policy to pro-

the

.snainland

re¬

relating
to 'the;/
of atomic energy. '

trade or professjon
Access to Secret-Restricted
Data js similarly obtainable if the

ical

ber, the inva¬
sion of

of

a

he

that

being empowered to give away money, strutted himself
all over the place, broke into the headlines.

•

remem¬

y o u

town

business,

cant's

succeeded

They

gas.

properly approached and the story of
rich"

regulation, access • to
Confidential-Restricted Data may

Isotopes in medicine, industry and agriculture; (3) Radiation
in feed sterilization and in chem-

As

time.

Uses

Peaceful
Under

(2)

Iecord-break-

jng

making available

data

stricted

1954.

of

self:

type

2.3w

for

cedures

seen

Commission
and simplified pro¬

new

and

speech in the Senate, an¬
thought he had t been im¬

Dakota, in

nounced

1955, the

May,

published

present time, if we except perhaps
the most important one—Peace it-

totally
of
v;eapon in a
Jorge

In

oil

with

.-•But, at the last moment, Senator Case of A
South

/v'//AA.y ^

Access Permit Program.

do

to

Commission.
^

This system is called the

mation.

promote the development of
the Peaceful Uses so as to further
world peace, improve the general
welfare, and increase the standard
of living. These are facts of law
embodied in the Atomic Energy

Uses

this

country to

wh<3- have

system of safeguards for about
20% of the Peaceful Uses infor-V

to

There

derstanding,
-enabled

these days are those
in passing
through Congress legislation which would, have exempted gas
producers at the source from the control of the Federal Power
The most downcast people in Washington

tive of assuring the common de- jje granted if a potential use/ is
fense and security. It is directed shown for such data in the appli-

Act

Washington
Ahead of the News
By CARLISLE BARGERON

being,

presently deelassifiable has actu¬
ally physically been declassified
and published, it will be necessary
to
continue to operate under a

buying act expires in March, 1962.

when present statutory ore

From
:

and until
the bulk of information which is
time

the

For

(1) major economic devel¬
opment of free world uranium industry; (2) current annual
savings of $100 million in industrial processing; (3) agricul¬
tural economic use of radioisotopes amounts to about $210
million per year; (4) in 14 applications received, 2 are for
major private power installations, and (5) uranium industry is
increasing production and forming new supply sources. Though
present nuclear supplies are adequate, Dr. Libby warns that the
atomic industry requires a healthy, active domestic mining in¬
dustry without "boom and bust" operations. Orderly transfer
market is

r

categories.

nership with industry in showing:

from Government control to commercial uranium

"restricted

the

Some documents

category.

pertaining to the Peaceful Uses,
however,
will
continue
to
be
classified only insofar as information about them is also critical
information
in
these
restricted

policies and the results of part¬

AEC Commissioner reviews the

in

continue

also

data"

f

.Thursday, March 15, 1056

(1298)

of information. Permit- '
clearing substantial num-

and

bers of their people for access under
the program.
11,000
"Q":
clearances and 4,30© "L" clearances have been granted by the

Apparently the!

offering campaign contributions to Senators.

fellow just arrived in a town and asked a taxi driver, can you
A large volume of the informasnow me a Republican around here, I want to give him a con¬
ful uses of atomic energy. In this tion of use in the industrial applitribution.
rawer venture into the atom, we
cation of the Peaceful Uses of
-;.//;// .! ;
fully expect the firm partnership/ atomic energy is unclassified, and Commission as of Dec. 31, 1955. 1
A ' But where does this leave an Eisenhower-dominated Federal
Letween industry and government has already been made available
Under the Access Permit pro-,;
Power Commission?
The Congress doesn't want the natural gas
will continue to grow.
in the standard technical journals, gram, properly cleared represenproducers regulated by the Commission; by its vote it said this.
Under
the
provisions
of the *n tlle sPecial publications of the tatives are entitled to access to
The President doesn't think they should be so regulated. He said
Atomic Energy Act of 1954, the Commission, and in the proceed- much of the classified AEC-devel<this in his veto message. Well, what is the poor little Commission,
<Jommission has taken a number ^gs °f thf recent Conference on 0ped information, with the excep- /• all of whose members are
appointed by the President, going to do?
(I steps to open even further the the p®ac,eful. Us^s of Ato™lc kn- tion of weapons and certain other
It is in a better position than the Southerners who have been
f oor
of
industrial
cooperation. er£y held ln Geneva this past types of information principally

and more toward the peace-

j.lore

,

] Zany

of

you

are

familiar

information in some quantitative access to Secret-Restricted Data
way, one might estimate the per- in those categories for which they
centage of the information neces- have
established
a
"need-to] arhaps suggest what the future sary to the Peaceful Uses which know." They may also obtain, in
nay hold in store for you as you is now declassified.
Perhaps this addition, access to certain areas '
I want to
of progress in
lurtherance of the 1954 Act, and

taken.
to

Today

you

full-fledged

atomic

At

the

make

one

energy

partners

in

50%.

program.

outset, I should like to
thing clear, that all dur-

iag the operation of the Manhat¬
tan District and its successor, the
Atomic Energy Commission, the
1 illions of dollars appropriated to
13 by Congress have been spent
3 ct
by the government, but by
j rivate industry for the govern3_ient. The other point I want to
3 :iake
clear is that the policy of
fae Commission has always been
fiat the major part of the work
3's done by outside contracts rather
loan by direct government em] loyment; presently, for example,
^

something like

Another 30%

declassified

by

which

effort

is

being
AEC

now

concerted
involves
a
a

mass

meeting
of
reviewers
at
Oak
Ridge.
These reviewers are re-

This

passed.

makes

most

Peaceful Uses unclassified
ers

either

policy

information

the

on
or

low¬

its classification to "Confiden¬

tial— Restricted

Data," as com¬
pared to the "Secret — Restricted

thousands

of

way or

charged

with

Uses

of

developing
the atom.

the
It

is

of
'

Confidential
/'

ganized by subject
referring
to
more
unclassified

special

p"a^ei^

essentially a11 of the
1

policy

is

for

In

future,

of

investigation

IcT

10,

1956.




in

opinion,

my

nothing

men

It is quite plain what Bridges is trying to do.
lation

was

The

Its two leading supporters

non-partisan.

legis¬

gas

Senator

were

Lyndon Johnson, the Democratic leader of the Senate, and Speaker

and

Sam Rayburn of

13,000

gas

the House.

Democratic

are

producers

and > sum¬
which are

Most of the States producing natural

Yet

States.

the

legislation

regulation

Federal

from

fits- in

exempting

with

the

Republican

philosophy of keeping the Federal Government out of the business
of the States.

So

Republicans in both branches of Congress

more

voted for the legislation

The

Commissjon has* designated 47 depository
libraries in
the
United States

In

mined

complete files of the
Commission - published unclassicarry

phies.
serves

than did Democrats.

the "scandal" that

has ensued,

that

going to be made the scapegoats in

they

are

not

the Republicans

deter¬

are

a

political investigation which they had reason to fear in an investi¬
gation

reports

and
compilations,
journals and bibliogra-*

-young

The John Crerar Library
the Chicago area. In four

certai^SmTio^in The riSsf °f theSG deposi^°/7 libraries, variffij^ategorv^onthoS ous un cl a s s l fi ed engineering
it cannot bTreleaspd wUhmft
drawings are available for inspec-

which

dominated

his

fellow

gambling inquiry.
'

publicans and
mittee

by

Gore,

Senator

Tennessean, who envies

so

Tennessean,

the

likeable

ambitious

but

the headlines and national fame
Estes

Kefauver,

got

The Democratic leaders agree
they deliberately set

up

an

out

with

of

his

the Re-

investigating

com¬

equally divided between Democrats and Republicans.

In

a

nn

ASSS^S &85 2£
the

M i!itj»-

have,

the

connection with

of the most likeable

committee so divided, Bridges

insist upon an equal

,^ect to the paramount objec-

lobbying,

be concerned about.

investigation, Senator Styles Bridges,
in the Senate, Chairman of the Re¬
publican Policy Committee and the oldest Republican Senator in
point of seniority, has stuck his neck out and subjected himself
to
criticism of the leftwingers that he.* is trying to bottle the
investigation up.
!

•one

technical reports,

handbooks

■a ■;

^

abstract

the

than

-;f:

else to

available to him by purchase and
examination in reference and de-

fied

nave been published.

matter

.

So the oil and gas men, except from being worried about the

Senate

Restricted'

-

bibliographies

mary-type

^alleJ °f a *ew years 11 1S not which

This

The Atomic Energy Commission

areas

Data.

^

however, and at the present time,

AEC Policy

v

of Confidential data relating to
special features of military reactors. "L" cleared permit holders /
may obtain access to most of the "

Data" category. One can expect
Process of downgrading pository libraries.
User> Wl11 continue and that in a

l.-caceful

do.
.

jamming all likely documents in
As soon as an Access Permit is
V1^u the declassification policy granted and prior ;to security
hich was initiated shortly after clearance, the holder is sent a
tPe Atomic Energy Act of 1954 large package containing lists orwas

engaged in atomic energy in

of

continued.

53

be

information on the Peaceful

tens

another, only one man
i :i twenty is a government employee. These two basic policies
5 or cooperation with industry are
cue

would

per-

(£ the
I ons

number

It has the President and the

And it doesn't possibly have the facilities with
which to do the work which the Supreme Court has said it should
Congress with it.

resume

a

1 ecome
tie

ordered to desegregate their schools.

with summer.
connected with production. "Q"
If it were possible to measure cleared permit holders are given

been
present

of the steps which have

i ome

no

holder, per-

'foresee^futurjweapon" sonnel a"d faeilit/ have bea"'

information

will

continue

to

be

Continued

on

page

46

reason

won't

place.

be

why such
the

voice.
a

and his fellow Republicans naturally

This they have now gotten.

committee can't get the facts.

fiery headlines

smearing reputations all

There is
But there
over

the

Volume 183

Number 5516...The Commercial and Financial Chronicle

(1299)

taxes was $100,107,000, and
taxes, $47,525,000. Earnings
per share of Common Stock were
$3.16 in 1955, compared with $2.63
come

The Outlook for Electronics

in

President, Radio Corporation of America

*

Electronic industry's growth by 66% in next eight

*

*

by RCA President;

national

for

1956

*into electronics

the

expected
Planned 200,000 RCA color television pro-

growth.

duction

*

double

cited

is

rate

a

mark

to

Mounting

industry.

color's

taxes

many

i

products and services is expected in the near future, just as
80% of RCA current, and for the first time, billion dollar total

'

sales stem from items not existing
10 years ago.

Mr. Folsom

feasting expansion

doubling

a

commercially developed

or

am.

electronic

an

;:

declared

were

This

.

,

NBC color programming

of

V

:

$3.50

the

on

share

per

Common

Now I will

of

At that time I was

Clover
that

to

predict to

services

give

you

a

few ad-

Club

before

many

y ears

and -all

ians,
east-,

would
not
only ;, be
able to' enjoy
the beauty, of *
tne
sunset,>
but se?' i jt,,
again,. t h e
erners,

day,

same

it

trial
inai

States. Our

cilities

low

the

Frank

m.

If

Folsom,-.

asked

if I

me

didn't

think

have

easterners

we

set

and,

three

watched

have

it

Pacific!

I

seen

hours

sink

in

of

new

try.

quite

was

in its

ness

that

lion

will

turn

from

and

will

the

be

for

At the

which I believe will be of interest

volume

to you.

lifeblood

of

electronics

that

a

scientific

pioneering
is

a

science

re¬

in

on ap-

tho

built—a two-wav

radio

by

hv

the

RCA
IT

and

<4

is

Armv;

we

Daid

of

the

of

first

iy

0

n-dollars in

exists

address by

Mr. Folsom before the
Security Analysts Society, Boston,

of $150 million

companies to

pro-

plants, equip-

ment and inventories for expanded

each

year.

years

vide money for new

than four milfor

previous

from insurance

/

time./ This was

business

one

$237

operations.
abie

.

0ver

These

loans

are

eight-year

an

pay-

period

million dollars, nated Debentures due in 1980. The

million

in

1946, .share.

postwar year.

y

/

r
,

March

attention

your

the

field

beween

us

this great

Some of you

may

RCA

transferred

be interested
with the so-

net

assets

of

$21,600,000, consisting of the assets

.

the electronics industry
attained an annual volume of al¬
most

that

SS57~

$11

billion.

by 1964

It

is

.

eight

—

estimated

it will reach approximate¬

—

ly $18 billion.

sup-

It is indeed

and im-

advance

to

paradox that this

a

date

the

and

aging prospects for the
cade hinge

the tiny

on

General

:

Sarnoff

has

encour¬

electron.

and

that

marked

.

electron
it

was

often

lucky

might add that
lucky, too, that he hitched

was

RCA to it
The

as

well!

electron

is

ation.

This

rigid

means

business

means

common

a

more

to

national

—

a

it

understanding

of each other's problems.
comes

than

relationship

When it

defense,

this

teamwork gives our Armed Forces
the

electronic

tools

and

a

ments.
tron

And, conversely, the elec¬
the partner of the atom
highly commendable Atoms-

is

in the

for-Peace

programs

now

of

Because

weapons

intense
his

same

the other

teamwork applies to all

General

products RCA manufac-

{ures<

driving

ance,

our

Princeton,
the

as

Sarnoff and the Electron
Now,
some

interest

of

while
our

I

have

given

Center.

force

great
N.

J.,

David
It

in

Sarnoff3

in

research

its

laboratories
were

offer shares of Capital Stock

as set

forth in the Offering Circular.

Research

is there that

television

you

Continued

business and finan-

on

page

of record as these bonds have all been sold.

3V2% and 3^8% Serial Bonds due January 1, 1958 through 1980
and

3%% Bonds due 1985
■

Copies of the Offering Circular may he obtainedfrom any of the several underwriters, in•
eluding the undersigned, only in States in which such underwriters are qualified So act as
dealers in securities and in which the Offering Circular may legally be distributed.

*

Stifel,Nicolaus & Company
The First Boston

«

•

4

*.

"W

Corporation

_

Merrill Lynch, Pierce, Fenner & Beane
Salomon Bros. & Hutzler




Townsend,Dabney &Tyson

Incorporated

.

.

►

Allen &
W. E. Hutton & Co.
Schoellkopf, Hutton & Pomeroy, Inc.

McDougal & Condon
-Incorporated

March

15, 1956

at

dedicated

Sarnoff

(Veterans' Memorial Bridge)

-

and

continu¬

.

The several underwriters have agreed, subject to certain conditions, to purchase any unsubscribed shares and, both during and following the subscription

under

development here and abroad.

-

March 26, 3956._

a

the

and I

—

Bridge Revenue Refunding and Improvement Bonds

outstanding Capital Stock are being offered rights to
$20 per share for the above shares at the rate of one share for each
four shares of Capital Stock held of.record on March 9, 1956. Subscription Warat

may

re¬

as

he hitched his wagon to

boy

our

he

City of East St. Louis, Illinois

Holders of the Bank's

period,

de¬

next

ISSUE

(*5 Par Value)

»

from

years

12,1956

Capital Stock

on

1

/

1955

$15,500,000

expire at 3:30 P.M., Eastern Standard Time,

more

science, art

348,480 Shares

will

no

prime factor
world, no single company is big
/in most modern instruments oi
enough, or possesses enough skills war—a
key to radar, guided mis¬
^ resources, to do all things its
siles, detection and warning sys¬
customers require. Our supplieis
tems, signal controls and com¬
a^®
associates, and our sue- munications. Electronic
devices
cess is dependent on their cooper¬
A'
are
essential
in
nuclear instru¬

This advertisement appears for purposes

rants

of

and

communications,

industry.

In

This

White Goods

NEW

subscribe

peace

in his lifetime, has done

they need when they need them.

1955, compared with $940,950,- jn our relationship
in 1954, an. increase of 12%. ^■..■called "white
goods/' or home apNet profit before Federal inpiiance field. As of Sept. 15, 1955,

new issue

to

in

traditions

,4

000

Mass., March 12, 1956.

call

advance

and

strong community of interest that

170,000.

fn

ex-

-

Sales amounted to $1,055,266,000*

which

to

now

new

and

war

anniversary in

man

^
Pliers helP to make

in

would

radio

'

signal Corps.

nation

50th

•

terials and services. Thus, the

developed

heim*. tested

leading
industrial units of this country.
His contributions to military com¬
munications and to the security of

I

nnncnm

efeht^tete^InToM

for

way

of the

one

that 1956 marks General Sarnoff.'s

products for

indnstrv anH

the

opened

to become

exemplify the highest
of patriotic service.

by the Government as small busitransistor-!,t*ess
are in turn buying parts
FM

The billion-dollar business /Debentures are convertible into
1955 was 4V2 times the RCA RCA
Common
Stock
at
$50, a

in
♦An
Boston

«

supplying materials and services

beginning of 1920, when starting in 1970. Also included is
operations,: the*, the principal amount of $99,999,of business was running 700 of 3 y2% Convertible Subordi-

rate

volume

Indeed,

progress.

<

and

walkie-talkie

have

that

ft

year.

in

the

are

During 1955, RCA relied

commenced

the

at

Value of Research

and

more

of

working day of the

role
more

RCA

Our thesis is

the first

dollars

specific with statistics and figures

search

be in the embryonic
silent, dark and color¬
less. It is his vision,
leadership,
and tremendous ability for work

.

36-year history

one-b i 11 i

ceeding

in its flight.
I

—

sup¬
Working capital at the year-end
pliers. We believe, too, that their
case it has not reached you, as yet/-; was $327,175,000.
I might point out; that in
1955,
Long-term
debt totals
$249,- interest and ours are interdepenRCA did the largest volume busi-/ 999 700
This includes borrowings
this complicated modern

with Nature and with Time

prophet

stages

proximatel
/500 eompanies
r,forty-three states for assistance in

Hpfpn„p

the

us no

still

the

over

instrument weighing only 15
~
Set-has!

the RCA Annual
Report for 1955 was issued and, in

equivalent to

a

might

this

Produce finished

to

of

Without his leadership these forces

network

35%

worker,

everyone

our

casting and onward to television.

.

Financial Results

sales

Now

in

new

.

the

force

in

'
proved products, and contribute
indus-.xoday RCA has 78,500 employ--to the economy and employment
'
.ees, including 8,500 overseas.
* °^,SvePy statestockholders total approximateWe have always recognized the

•

ing

of

ever

that$we

you

—

is telescoping distances and catchup

ten;

you

Two weeks ago

TV—a

rlmuriicationS.

•

,

smallest

before

and'told

-

electron

the

all the flaming
That is but one

beauty of color.
wonder

stood

-

in

?etense, industry and the consuminter-com,- ; lnS Publlc. These companies
the
equipment. The•• J*13!?
X 0 W^1C^ are classified

communications

1955, few would have believed
because in those days the

it

«

sunsets

-y -rv?

—

year

been

later,

into

increased

research

future

Suppliers

^P^Sress was made in the de-

was

Today I would like to go a step
further as a soothsayer and predict that before long you will see
these

had

mil,i0„

in

sun

I

of them

one

history.* Television

cham¬

a

ideas, General Sarn¬
inspiration to the scien¬

sphere of activi¬
ty. He has continually brought the
into focus,
he has tele¬
scoped
the
years
and
at
the
pace
for new triumphs all the
way from wireless to radio broad¬

on

■ programs,

businesf at theTnifu'af'rate obsSf^"ized

a-bit--optimistic.. Well, since then,
my
prediction has come true—
and

" v:'

the

ent at the dinner and

RCA

that

—

Sarnoff,

pioneer and

matter- what

are affiliated with the NBC-TV
network, with 106 equipped to
transmit network-originated color

services which si.ie systems, intrared detection desubstantially r; to .the-vices, and a wide range of airborne "

the United States.

hori-

of

zon

scientific,, manufac-'

/strength and national security of

Golden Gate, and the Pacific:. Two
United "States Senators were prespres¬

of

asset

David

us

Cor¬

new

an

and

affiliated stations, and 201 stations' RCA

integral

are

contribute

dipped be--

service

ders amounted to about $235,000,,

as

-

a

—

of

the

Officer.
a

engineer and to

previous year, and a gain of 23%
in over-all sales was achieved.
The NBC radio network has 196

So

companies

tist

market

enjoyed the greatest

billings

is

the top twenty-five
indus-;
in the United uuume
v mieu

among

by

television-

its

ditional "vital statistics," but will

highly encouraging
scientific research. Eighty percent

mem-

the

Boston

pany

1955

into detail, because you
them covered thoroughty-in our Annual Report.
of RCA's total sales in 1955 were
Today, electronic products sold
in products and services which did ^ to
the military are about onenot exist, or were not commercial-*.fourth of total industry volume,
ly developed, ten years.. ago. Re- I RCA's business with the Armed
search, .^development"^ and;.''engi-{-J;orces .accounted for nearly 22%
neering have spearheaded RCA's °f..total volume in 1955. The yeareconcmic
advance
to a
positioned backlog of Government or-

1948.

enough

twenty

shares of

The

The National Broadcasting Com-

Stock,

back in

e r s

Always

NBC

on

progress

b

common

company.

Whirlpool-Seeger Corporation
Dec. 31, 1955, was $31,426,000.

against $1.35 for 1954.

is born of changed The
American public's spontaneous acceptance
of
new
products and

of the

new

greatest

all

be

Chairman of the Board and Chief

value of the RCA holdings in the

per

optimist, a
title I earned right here in Boston
bold

the

received

what
to

General

Executive

pion of

per cent

$24,069,000

the Preferred Stock and $1.50

Brig,

off is

RCA

out

consider

poration's
is,

by RCA for 1955.

included

share

1

from 40 to 80 hours.
I

"

in $12 million color broad-

sees

totaling

rights

company

was

exchange

1955

Dividends

trademark

organized

point

RCA

Whirlpool-Seeger Corporation. In

$31,387,000, making
tax bill $97,998,.000, an amount equivalent to $6.93
per Common Share.

V

certain

newly

a

in

merged with Whirlpool Corporation and S e e g e r
Refrigerator
Company to
form

prop-

totaled

the-total

,

to

which

excise taxes of

"

f

new

in-

$66,611,000 in 1955.
addition, the Corporation paid

In

major entrance

from

revenue

Federal

erty tax, and other state and local

,

statistics, I would be remiss

not

to

Corporation's

taxes, social security,

come

is

years

cial

granted

1954.

The

con-

ditioning businesses and Cash of
approximately
$15,700,000,
and

> after

By FRANK M. FOLSOM*

"foreseen

of its kitchen range and air

11

Company

Newhard, Cook & Co.

Reinholdt & Gardner

51

12

(1300)

the

upon

TV and Radio Broadcasting
As Seen by

coverage

his

ing audience
of his

most

Congressional control.
selling and business survival is
found not incompatible with high ethical standards. Mr. Lee
lists ameliorating constructive steps and indicates "impact"
is as important as number of viewers in determining question
of "public interest, convenience and necessity."
^
subject to stringent

but it must be

ested in

remarks by

sider

myself

field of

do not conexpert in your

that I
an

I

commerce.

bureau-

am a

of your

nized, is not only to satisfy his
employer with more and more
sales but to contribute his part to
a way of life that requires high

be

seek only
you

conflict with our, natural ideas on

that
perhaps
might under¬

lem^

just

saic

inquiries, for example, how
stations a given city can
support; retail sales; population

as¬

an

many

sured fact that
we

operate in

a common

and

field

neither, I

assure

Robert

E.

turing trends, etc.,

Lee

you,

operate without the other.
object in life is to provide
the means that will sell the product you represent.
My objective

can

Your

here is to

assure

that that end

you

is best

obtained, in the long pull,
by'improvement and maintenance
of a high ethical standard in Radio and Television
T

.

„

,

..

,

In talking to salesmen and time-

buyers it occurred to
are

not

related

tv.

then

But

there

is

it

a

that these
how

and

apPle*j and pe?£s'f
occurred to
that

•+

n

me

groups

me

for

reason

them

being

together here so perhaps my first
impression is wrong and that there
really is a strong community of
interest.

When

stripped
we

the

of
all

are

functions

the

salesmen

particularly all of

and

here today.

us

cJ
and

sold

the

J

„

minds

medium

sold?

of

influence

Time bought and

aired

messages

b!

unless

is

also

sold, and
are

lis-

tening and/or watching. The prod-

for

used

that

this

means

sound

objective

end

and

good programming and

broadcasting practices.

I have always had

spect for salesmen.

a

healthy

They

re-

the

are

who generate the constant
expanding economy that has
helped build a fantastically prosones

and

perous

way

known

of life.

economic

modern industrial

seriously falter if
ited themselves to
what

It is

fact

well-

a

that

our

machine would

last

a

reach

way

the

and

pubtic

give them what they want in rej

^urn
t

..

their

support at the re-

^

jevej
,

.....

n

Harding-Cox Presidential
£,.*:? ?on r^arns .w(^e
m

ve™,

m'Tr

r

and tbe ^irst commercial TV li£,en,s.e was issued in June, 1941.
Radio
since

those

historic

occasions

car

of

clothes, the shirt and the
pair of shoes. What our economy
is

of

clothes

discard

and

the

desire

to

the

product of yesterday
for the improvement of tomorrow,
These

are more

of metals

than combinations

munications,

entertainment
CllbCi LdliXUlCUl

liJUIIIWaiiVHO,

"

°n

rable

[Af5 *

the

'

there

No Need for Dilemma
in

his

effort

maintain

to

standards in the selection and presentation of programs, frequently
finds himself caught in the mid-

?.!<;,of Pressures °ve,r which he has
little or no control. He is often
Placed, like the bird in the bad™inton game, in a position where
J>e must choose between his desire
t0 maintain high ethical standards
and survival. But this is only his
concePtion and I believe he is

blllty for hls misconception,
source

manufacturers

and distributors
seeking larger markets for their

products—the networks

never

stand

still

and

go backwards.
Forward is
the only way we know for this is
the vital oil and fuel for our way
never

of life. So the

responsibility of the
salesman, although seldom recog——

»An

New

address

York

by Commissioner Lee be-

City, Feb. 21, 1956.




—

difficult
standards

the
to

the

and spot
advertising

handle

broadcaster

the

ac-

finds

it

maintain

of

the high
performance he

should utilize to conform with the
conditions under which he re-

ceived

a

license to

use

something

that belongs not to him but to all
the people who Can take it back
when the privilege is abused.
The

broadcaster

is

This

attract

The radio and television broad-

counts

can

the

a

cer¬

in this industry which has
multiplied its resources four-fold

"I

not as optimistic, how¬
about the profit picture in
the television industry," Mr.
am

Abrams told

rity

the

experts.

assembled

"While

-

secu¬

TV

color

entire

our

economy."
hope that the

He expressed the

day will

soon come

cold

hot

nor

work

to

when neither

will contribute

wars

loads

in

factories

and

action that will
into a government
will

tainly our strongest hope for the
political development of heretofore non¬
existent products."
campaign, in which, Emerson's
Mr. Abrams also pointed to the
President stated, "television will
added leisure time that will be
be used
by national, state and
local candidates on # vast scale provided by devices which make
for
improved
production tech¬
heretofore unknown."
niques, such as automation, which
Mr. Abrams advanced the view

and black-and-white TV receivers

surely

come

if

outraged public demands it.
Temporarily lucrative, although

.

which

are

mis¬

a

objectionable advertising seems to

?lcture industrie* com-

product of the American ingenuity

cloth; they

industry and, to

new

pany

ever,

this

year

that

the

of

TV

will

dependent

many operators who feel
is no other course of sur¬

over-all

because

For

courage

the

advertiser

this is to

say

to

en¬

he

in

hear, resist this sales appeal be¬
in broadcasting we bait, we

knock,

we switch and we lie. Let
the public lose confidence in the

broadcasting medium and

you cre¬

ate sales resistance and not sales.

Furthermore, if the broadcaster
wishes to
cense,

assure

structure
higher

be

continued

high

Lower color TV

said,

a limited
middle of the

to,

price

materialize

may

around the
year.
An increase
unit sale price of black-

,

the

and-white

receivers

pected this

tuning

the

can

trend

to

mechanisms,
control, which

remote

be

ex¬

advanced

including

make

for

convenient, yet more costly,
second

TV sets in the home will be much

ly. He foresaw

remote
receivers,
particularly those located in bed¬
units

many more

for

these

rooms.

Modulized

(Stacked) Electronic
Components

What

he

described

"by far
isfy the Commission that his sta¬
the greatest development in pro¬
tion
has
been
operated in the
duction techniques in the history
public interest, convenience and
of the industry" are the modules,
necessity. We at the FCC have
or
stacked components, resulting
leaned over backward in putting a
from considerable developmental
liberal interpretation on this clause
work by Emerson in conjunction
in order to avoid any suggestion of
with American Car and Foundry.
censorship. However, our mail ap¬
(This stems from the governmentpears to indicate that an aroused
sponsored automation project for¬
public may not be as tolerant.
merly called "Tinkertoy").
During the past few years I have
"It will eventually be possible
discussed this problem of main¬
by means of this technique to
taining and improving standards
of programming, advertising and plug in components, or integrated
sections of a circuit, into a tele¬
general business
practices with

practically all segments of the in¬
dustry.
These

discussions

have

firmed my conviction that

isfactory solution
without

the

eration

of

can

con¬

no

sat¬

be achieved

assistance

and

coop¬

or

that

radio set with the

same

a replace¬
tube," Mr. Abrams
technique offers
promise of further economies as
ease

ment

one

well

plugs in

vacuum

declared.

"The

considerably lessening of
service problems."

receivers incorporating these mo¬

stand aside and refuse to

co¬

dulized electronic components and

operate in the formulation of

ac-

Continued

on

page

40

Education

will
for

unskilled

crease

the

of

help

Emerson's
"I

dicted.

and

the

demand for

cannot

in¬

skilled

President pre¬
emphasize too

strongly the urgent need for more
education.

technical

This

need

will become critical unless some¬

is done to promote larger
comprehensive facili¬

more

ties for
well

obtaining such education
as
promoting a greater

interest

students to seek
of education. The future
strength of our country will
materially enhanced by the ag¬
among

this type
and
be

gressive promotion of technical
education; it will be seriously en¬
dangered by a failure to do so."
Air

Predicts

Conditioning May

Surpass TV Business
Air conditioning, in Mr. Abrams*

opinion, will ultimately equal or
surpass the television business. Its
potential lies not only in the pro¬
duction and sales of room units,
but he stated that an even greater

exists

potential

in

central

resi¬

dential and commercial units.
"While

of

currently confining most

production to room units,
is also in production on
commercial and residential units,"
its

Emerson

he reported.

veloping

residential

and
to

"We are
air-cooled

engage

in

units

mass

also de¬
commercial

now

and

expect

production of

such units."

as

timebuyers
and other associated professions.
In fact, salesmen and timebuyers
can

salesmen,

vision

as

shorter work week.

by-product of automation
be minimizing of the demand

as

greater in demand than previous¬

renewal of his li¬

he must be prepared to sat¬

predicted

a

Technical

Promote

\J"A

and

Abrams

control

lead to

Warns of Danger in Failure to

thing

receivers.

Mr.

will reduce the labor content and
may

primarily by help,"

year

of

reason

degree

to the public

beware—do not believe what you

cause

the

of

the

will

cost of color sets.

prices,

more

vival.

be

receivers

an

theatre and

press

you

vassal.

and
anu

education which, gauged by the

salesmen — and
agencies which

and

delivered is

and this attitude is healthy
industry, but do not force

throttle

assistance and cooperation of the

the

as

a

tain extent, to a lack of
maturity.
"Emerson is not the only com¬

spot

Congressional

has

the agency of mass com¬

suit

well

third

copy
for the

wrong. There are those among you
purchasing only who .must accept some responsias

message

a

or

and television broadcasting

prospering and expanding on
today is the second car, the eighth

longer,

.

myself I sense a ground
swell of public revulsion that is
making itself felt not only in the
industry but in the Congress as
well. Check the pages of the Con¬
gressional Record and take heed
at what may be coming. The FCC
as
presently constituted believes
in the industry and abhors any
thoughts of censoring advertising

Advertising is not only the
of revenue of our free cornpetitive system of broadcasting—
it is the life blood of the entire
industry. Therefore, without the

suit

in

Society of Se¬
curity Ana¬

For

consumers lim-

they needed. The family

could

the New York

Public Revulsion

they cannot but they do and
is salesmanship.
Support is
found for the ingenious who find

and improve the established high

medium

he

relatively moderate profit condi¬
tion is merely the result, he
said*
of "growing pains" to be
expected

dress before

sion accomplished?

thfs

caster,

the

in

ad¬

an

production of
accurately : color TV sets

v

say

the

is

Real

what

on

incredibly bright fu¬
ture of the electronics industry"
and predicted that, in two or three
decades, it will become the larg¬
est in the country. Its temporary

dollar

1956 in

ought not to

emphasis

"the

HIS

J*?""8

uct qr the objective of sales effort
is more than the razor blades or

cigarettes—it

called

volume in the

viewers

Emerson's President placed con¬

siderable

I hope not. Is will contribute to increased
take up the slack in unemploy¬
sales,
really making it is not
ment.
raw beginning Yherealciueto
apt to materially con¬
money, or is it driving the com¬
"Instead, we must rely on the
tribute to increased profits.
But,
called salesmanship. We have been mercial-punchy listener to throw we are certain that 1956 will set ingenuity of our industry and de¬
the switch?
Do not interpret the
new
goods
and
services
the stage for substantial profits velop
,™!n?i. ' „a
yea^s
about the so-called saturated com- passiveness of the audience to* from color TV in years to come." which make for better living," he
said.
munities that cannot support an- mean that there is no limit to what
"Today, the electronics in¬
A
vital
factor
in
increased
other station But they can and do he will stand.
production and sales of both color dustry, if not the only one, is cer¬

useless unless

are

potential customers

your

V

influenced

that
that

become

Important Role of Selling
T),,+

best

might be but this is indeed the

are

trappings

fancy

indeed

find guides
prospects

we

our

creased

Are we perhaps developing a
philosophy where we are com¬
fortably relaxed in the thought

despite the hard cold figures that

broadcasting.

,

.

„

where

to

as

Corp.,

TV industry

goers?

manufac¬

family' trends;

trends;

"Electronics Industry Will
Become Largest in County"

re¬

predicted in¬

merely
results.

consideration.

television

in the last ten years," Mr. Abrams
fairly advertised by an adver¬
stated.
"This rapid rise is pretty
may leap to
tising fraternity which has earned one-half mil¬
much the story of the
industry.
the
reputation
of
embellishing, lion this
From now on, in my
year
opinion, its
Benjamin Abrams
perhaps but not distorting the - and he a tgrowth will be at an even more
truth?
If you are selling bibles, tributed the
expected surge to the accelerated pace and, as a result,
why program to 10,000 atheists if prospect of increased daily color the electronics industry may well
you have a choice of 1,000 church¬ programming.
become the balancing factor in

must, of necessity, enter into all
business calculations. In such pro¬

since it is cer¬

tainly

ograph

suggesting is that the

sole

and

and

This influence of salesmanship

a

better

little

color

dent of Emerson Radio and Phon¬

the number of

need and that has been

thrift.

stand my prob¬

of

the

in

ceivers, Benjamin Abrams, Presi¬

oring for the store to open so that
lysts. He added
they can spend their money for a. that the total
product that is good, that they,

This challenge is, I believe,

I

mean

growth

sets. Higher over-all price structure
predicted. Modulized Electronic Components are
judged the greatest development in the industry's production

interest

be inter¬

thought should be given to impact.
Are your prospects listening pas¬
sively or have you got them clam¬

purchases. Man's reluc¬
tance to part with his money for
things that are necessarily essen¬
tial to his needs is the challenge.

prob-

and

am

number

in the
public interest though .it seems to

lems

to

electronics

color and conventional

Largely because of the growing

results.

good

must

mean

consumer

with, I
believe,
an
understanding
crat

for

you

incredible

techniques.

wisely

used

two.
But this could
numbers without

by

is the

and/or eyes captured, divided

ears

sees

campaign will help increase sales of both

of TV sets is

results|iTraditiphally, this

come

What I
you

skill

salesmen

has

.

best accounts.

with

and

As

President

powerful selling tool yet de¬

vised

Importance of advertising,

Emerson's

believes political

discourage some

to

The broadcasting medium

of Radio and Television Broadcasters extend its.
self-regulatory efforts to small minority of malefactors or find

I should preface my

which

such
practices as over-commer¬
cialization, triple or quadruple
spotting, or accepts commercials
of questionable taste, he may lose
enough of his listening and view¬

LEE*

^

assuring

he

must
maintain at all costs. If he accepts

Warning of possible "ground swell of public revulsion against
overcommercialization, Commissioner Lee suggests National

the entire industry

Color Receivers to Enlarge
Sales of Television Industry

in which he presents them

for

Communications Commission

Commissioner, Federal

public

manner

FCC Commissioner

By ROBERT E.

for and

respect

approval of his programs and the

Emerson

expects to

is currently designing

soon

be in production,

Mr. Abrams reported.

With Mid-Continent Sees.
(Special to The Financial Chronicle)

ST.

LOUIS,

Leezy

and

Mo. — Ralph L.
Ruth Goodson Owen

have become affiliated with MidContinent
3520

Securities

Corporation,

Hampton Avenue.

Of all benefits paid by Equitable last
year,
70% went to

over

An important message

of Living Insurance

from

a

Ljvjng policyholders
for

family and retirement incomes, children's education,
medical, business and financial emergencies.

pioneer

>

This is Living Insurance in action
and naturally
Equitable is proud of its role in bringing more financial
security to more and more Americans.
—

Once

you've said something, it's always good to be able

to prove

it.

Equitable has long held that the function of Living
Insurance is to stress benefits for
you and your family
while you live — as well as for those who live on after
you.

We are proud, too, of the annual statement shown
below, which indicates the kind of confidence you can

have in the Man from

The

proof of this dynamic concept is shown by the
figures for 1955. During that year, Equitable disbursed

Living Insurance fits
1

See the Man from

Equitable when he tells

life and needs.
Equitable today. •
your

.

you

how

•

\.

•

$597,000,000 in benefits." But of greater importance to
you is the fact that over 70% of that amount —or
$422,000,000—went to living policyholders, people who
didn't have
lives
THE

as

die

to

to win.

And

today they lead richer

result of the funds that

a

Equitable provided

RAY D. MURPHY, CHAIRMAN OF THE

BOARD

EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, HOME OFFICE: 393 SEVENTH
AVENUE, NEW YORK 1, N. Y.

CONDENSED STATEMENT OF CONDITION AS OF DECEMBER 31, 1955
Admitted Assets

Reserves, Other Liabilities, and Surplus

•Bonds and Stocks

Per Cent

U. S. Government

obligations.

$

Public utility bonds
Railroad obligations
Industrial obligations
Other bonds

448,408,431
961,544,016
751,349,702
2,335,298,763
527,022,522

Preferred and guaranteed stocks.,

175,803,357

Common stocks

21,416,008

Policy Reserve Funds
To

( 5.6)
(12.0)
( 9-3)
(29.0)
( 6.5)
2.2)
0.3)

Held

1,792,973,817

and annuities left on deposit
with the Society at interest
Policy claims in process of payment
Premiums paid in advance by policyholders
Dividends due and unpaid to policyholders
Dividends apportioned for distribution dur¬
ing 1956

( 4.0)

10,689,368

( 0.1)

200,716,486

222,249,235

(
(
(
(

( 2.5)
( - )

41,100,979
78,089,429
10,422,561

2.8)
0.5)
1-0)

0.1)

120,800,251

( 1.5)

36,342,000

( 0.4)

12,416,813

0.2)

91,251,984

1-1)

Housing developments and other real estate

.

purchased for investment
Other residential and business

properties..

241,061

Other Liabilities

Taxes-federal, state and other
Expenses accrued, unearned interest and
other obligations
Mandatory security valuation reserve

Other Assets
Cash

73,296,965
112,378,251
181,980,731

Transportation equipment
Loans to policyholders..
Premiums in process of collection
Interest and

68,221,451
67,743,920

accordance with

reserve

quotations
is

on

( 0.8)

$8,047,714,014

Including $0,683,327

market

.

Surplus to Policyholders

other assets

In

0.9)
1.4)
( 2.3)
( 0.8)

rentals due and accrued and

Total
•

(81.5)
( 4.7)

Dividends

(22.3)

318,629,165

$6,560,481,758
375,695,974

beneficiaries

Mortgages and Real Estate
Residential and business mortgages
Farm mortgages
Home and branch office buildings

Per Cent

future payments under Insurance
annuity contracts in force
on
deposit for policyholders and

cover

and

(100.0)

contingencies.,

498,863,030

( 6.2)

$8,047,714,014

(100.0)

deposit with public authorities.

requirements of law all bonds subject to amortization
on

To cover unforeseen

Total

December

31,

1055,

as

prescribed

by

are

the National

stated

at

their

amortized

value

and

all

other

bonds

and

stocks

are

valued

at

the

Association of Insurance Commissioners. In addition, as required, a security valuation

included among the liabilities.

Living Insurance by Equitable,

NEW YORK

EQUITABLE AGENCY MANAGERS AND GENERAL AGENTS IN NEW YORK CITY
A. BIEETSTEIH

JOSEPH V. DAVIS

LEO EISEN

S'D SMITH

MAXWELL M. SHAFFRAN

112 West 34th Street

225 West 34tli Street

45ti Seventh Avenue

120

225 West 34th Street

MONROE W.BLEETSTEIN

MILTON WEINER

ALFRED A. HARRIS, C. L. U.

MAX REIBEISEN

EDWARD R. SIEGEL

855 Sixth Avenue

50 East 42nd Street

75 Frarklin Avenue. Yonkers 5

Times Bldg.,

21 East 40th Street

MYRON H. COHEN

WILLIAM J. DUNSM0RE, C. L U.

J. BROOKE JOHNSTON, C. L. U.

E. W. REJAUNIER

HORACE H. WILSON

101 West 31st Street

120

8 West 40th Street

450 Seventh Avenue

295 Madison Avenue




Broadway

Broadway

42nd St. and Broadway

The Commercial and Financial Chronicle

U

and

of data from far-flung

By DR. ALLEN B.

Dr. Du Mont discusses

a new

Du MONT*

Laboratories, Inc.

Allen B. Du Mont

experimental development with

^

potentialities.. The
application of scatter communication is depicted permitting
pin-point wave communication "equal to or exceeding other
communication methods" which, if costs can become competitive, can: (1) supplement, extend or replace large A. T. &T.
coaxial cable and micro-wave investments;, (2) permit global
television; (3) allow multi-channel voice and code transmis¬
sion; (4) keep multi-placed operations in constant communications (voice, code, picture, signature ■ and figures), linked

commercial, television and communication

J

j

to

the

^

and

'•

J

the cosT can

of scatter

signals is pretty much a
matter of conjecture at this stage
of

experi¬

ment

with

understanding

background of
day-to-day
mmercial

application.
Neverthe¬

less, the fact

It

that UHF and

i

signals

can

be

miles

1,000

that

B. Du Mont

,

.

dicate

widespread

but

in-

Free

application in (jeai

future years.

System's

country

to

Europe

S

ceive

Cost

doing

are

great

a

+0 promote international un-

I

But

anv

cannot

factor

con-

is

that

as

television

capable as
for the promotion of global understanding
and harmony. A complete global
system may well be decades in
fairly the future, but certainly a start

First of all, we should probably
look at possible future applicalions from the standpoint of economics.

we

ground

secure

tbat

think

I

UHF

are

when

signals

sufficient

on

we

transmitted

for

tele-

will be able to be

in

to

United

Stntes

coaxial

ticnal

in

Telegraph
has already

and

order

ocean

In

ought tO'get going

away.

-

,

inter-connection

for*1

our

television system. To what extent

the

of

cost

munication

equipment
for

is

neces-

"scatter"

presently

com-

pretty

high.

o

•

T

T

•

*

South

America.

♦

A start has

Global Television

subject of telereally important po-

the

vision,

tential

for

the

transmission

of

use

must

be

microwave

•vision
to

or

come

elusion

jong

or

areas

impos-

maintain

cable.

or

scatter

in

Mihprp it is irY„ro«f,-„„l
where if is impractical
fiible
to
install
and

No

1,000 miles. Over land

(great

is

a

question

masses

about

how

and

wucro-wave

whprp

wafpr

facilities

inP

nr

But

linfripnrllv

**ere

usine

scatter

mnlti-phannel

for

te-

m

.vears

about

rrlohnl
global

the

fpTpvictrtn

television

ward

scatter"

possibility
system.

of

ore

an

transmissions
teienhnno

very

Communication

by

of

telegraph

and

mOWoBpc

"a £eleptlone. messages. TechnicaTly"
is possible and practical.

address by Dr. Du Mont be-

last

Scatter

Communication

Systems,

University,

George

Washington,




Wash-

D.

c.

r

Only the development of labor-

saving devices has enabled us to

needed for navigation. And only

the development of labor-saving

time, a

happens in

always

t
r m
Mississippi River, both that esential
for flood
control and that

-

devices in the office has enabled
us to make the calculations and
the ^gineenng stadies neoowr
agement, labor and the public forthe design of the control
which seem to fear the high speed works, high speed computer, like
The
great deal of this resistance to
change fa now melting away but
there are still segments of man-

computer. This latter condition is
normal,

as

to

all

there is always a re¬

sistance

change.

T

^- 7.

77 *

same

who tried to stop
ancestors from using McCor-

reactionaries

.

j

the

of

target

mkk,s

Harvester

Cotton

Gin

if Jr
"r
handling of

is still
type of

devices,

labor-saving

the

Jif mnSr and the others
computer, sue
the UNIVAC,

as

automation.ill
data. It makes no
j

our

and

and

Whitneys
Fulton's

Robert

steamboat, and who for so many
after

years

of

coming

the

Manufacturing Plant
We

can

possible

^eeP

"blue-sky" dream about
applications
that
will

multi-plant

operations

in

t muie. yje must recognize that

that

degree

a

of

fifteen

d0„,
few

even

ago.

years

—

w"°^;!;gh^V-r;T

office. We have had it al-

Q-most frcm the beginning of manI

kind.

suppose

the first expresuse of

of it.is m the child s

sion

.

?
a m€ans
|.pr..ot.auamon. ...

J,

first

The

e-

break

rapid calculations
abacus

g/,

,

..

,

Federation

pies.

.

_

of Jewish Philanthro-

Gustave

b"yMg

a new

automobile on the

groun(js that next year's will be
xhey are the ones who still

^e^er

stick to coal furnaces for the heat0j their homes in

-n

the thought

next year's oil burners will
be more economical. Fortunately,

through into
with the

the typical

are

cans.

The latter refuse to wait for

perfection, but get the best now
available, knowing full well that

Napier with logarithms fol-

the

next

not

the slide rule in 1654. Shortly be-

become President of the organi-/Qfinn

novt

principle calculator. Our first anaV
,
,
log and
digital calculators are

voor

communi-

_

>thus credited to Pascal and Lieb-

r'^*B ,lla

•

_

"

KV

Msi||A(]
TlRHivW
,

^mtz
-

.

yOlfSIFf anilV
""'"

model

will

be

different

mearjtime they will

be ahead of

the"game bVYheTdvantageTthev

bu*

ever* with pictures, signatures
and figures. Carry it still further,

ways
er

Gerald M. Gantz, Wood, Struth-

respectively.

I

.

*

.

Loewi

a

OZ.

Knopf

has

East

Mason

Knopf

was

in

who

big
still

duu liiuusuy wxiu hiui
on the value of

modern

office

up-to-date

equip-

other hand, we can

office

in

or

factory,

just

as

the application on

automation.

No Job Threat
No management should be fear-

whereby unemployment would be ful of substituting automation for

.

encouraged.

p

Lo.

(Speciai to the financial Chronicle)

MILWAUKEE,

and-industry

they have expressed their fears of

heen elected a trustee of the Com- argued that they were a means
Joins

uusincaa

haven't been sold
ment. On the

eTS & C°" NeW York City' has any laborsaving device. They have

mumty Service Society.

business

model

Shortsighted agitators have al- be proud of the part played by
deplored automation'wheth- some managements in extending

:

Sfir¥^'

""I "®"

Ameri-

they

came

times. Then in

partner,, f07e~this time "19-year-old Pascal

Levy,

L.

They are the people
always
want to postpone

lowed half a century later with and maybe better, but that in the

„

.

ancient

be something better

may

year."

o£ punting th®t

the early seventeenth century
•came

L. Levy

Gustave

Lewis

Salim
„

in

there

who

...

.

.

.

^
the

•

in

change and of "let's wait and see
will follow the timid
philosophy
next

History of Automation

And that meant hu- operations now done manually.

man

distress. They completely ig-

nore

.

Wis.—Robert F.

the advantages to mankind,

Certainly there is nothing repre-

hensible

in

freeing

people from

Any device which lessens man's drudgery and tedium and provid-

of

labo^ falls into the general classi- ing opportunity for them to hold

Incorporated, 225

fication of automation, whether it skilled jobs and perform more in-

joined

manufacturing Loewi & Co.

constant

the

** truck and tractor'still clung to the

resist

^lU
to

it

Street,

the

staff

members

of

■STa.iL Ltd pfoP.7.0t'e."io.»d nation—not only with voice, code, the Midwest Stock Exchange. Mr.
i..igton

living throughout the world.
-

Resistance

Managerial

dreamed

"For¬

definitely
Lives the industry the tool by
which it can be accomplished. ••

*From
the

eficial cucbi un the ovcuhucal
effect on liac standard of

ciitiai

.

inhabitants intervene, the scatter
transmission can bridge the gap.

-

tere and remarks lot of recent
^ve een a
statenients

not forget that in
extremely ben-

us

turn it has had an

it
it

needed
nppHpH
:

As

where water, ice, or unfriendly zation next yean

we are entering the provjnces of those companies that deal
new method fbr"*in
international communications,
transmission
makes
wil1 be for them to determine
television possible.
the economic reasonableness of
V -

imagination is required
quickly to the con-

And, let

ago.

soon scatter ,equipment will be in Goldman, Sachs & Co., was invented his simple calculating will reap before the next
simple and inexpensive enough to elected to the newly created of- machine in 1642. In 1673 Liebnitz is ready
taka th.e Place of existing cable fice of President-elect; he will completed his "stepping wheel"
There are even those

very

range

that
tnot

hands
handc

into* the
,;thQ

most.

third teim as President of the

that this

transoceanic

an

tool

mathematical or aipnaDeticai.

ready been made along these lines

there

the

on

America

at times as if U had to be forced perform the control work on the

-r,

al-

other commercial possibilities exist? Multi-channel Voice and code
transmissions are possible in the
VHF frequencies at distances well

the

since

ancestors first settled in
less than four centuries

our

business,
uuoiiiGoo,

.

any

American standard of living

a

ancj to put that tool into the hands
of business. Like so many other
valuable innovations,it has seemed

mediate goal should be a hemispheric network to bind more

over

Still

"or'

\

<

responsible
other single thing

for the tremendous increase in

it

be

effective

and

developed

be

Salim L. Lewis, partner in Bear, meets a need that progressive and thprfk wil1 aiwavo h*
cP«mPnt
?tearns & Co ' was elected nf ih(> farsighted management has sought ot human;tv that will r,esist all
to his tn fn, fnr appadps and it mppts f fjUmanity tnat Wlil
,
Prpc:HpTlf
aU

scatter"

amount

pary,

could

L AIWK M9IffDII

equipment ,Cuba.
would undoubtedly depend
<uponV<MllW. rhctnnoi vn.
.
down-to-earth
cost
comparisons.
/MulhrChaiiney-Vome andUode
With the high power required and
*n addition-'to television, what
the

that

than

more

is

revise

could

which have followed it, is simply

they would supplement or extend* with the experimental UHF relay
their
networking facilities jwith 'oi A- T- & T- between Florida and
"forward

so

na-"closely the nations of North and ^

provide

done

1950

cnational television. Another im-

micro-waVe

to

the

have

tool of science,

the

American-

company

cable

facilities

link across

What

'k&JfiWISfl 0feariiyi'i^^;^;h^efl

to

Europe, of course,- would be
Com- only the first objective for inter-

the

tremendous investment in

a

a

lor television will be

and

This

have

7

-

JSi p?1Pt*to"P01Jlt Shi
right

t

by

Telephone

sh^'?lthe

fn

to

„

PW

labor-saving

which

put into use, has been

since

,

J

cultivation of a

assiduous

Our

climate,- in
devices

we

spheric and ionospheric scatter,

live Itrans^
hook-up using

t

science.

The maJ°r P°lnt to emphasize is
that the communications industry
now u~~ available to it —
has —u point-topoint radio communication over
long distances with a degree of
reliability equa1 to or exceeding
other communication methods.
It cannot help but: receive ex^ens^ve practical use ss more experience is gained in the propaga^on characteristics and in the deand use
equipment,

a

pies.

shape

the

and

forward

and monbetween the
backward peoman

men

of the needs of

dicanon oi me practical uses tu
which we can apply this tropo-

study the feasibility of imrae-

Micro-Wave

'

determined

made

I believe that it would be well
the attention of Congress

atlantic, television

and

the

frincmittit
transmission

pany.

now.

satisfactorily for-dis—diately establishing

Coaxial-Cable
Here

made

worth

tances of 300 miles.

+,,71™

be

can

incorporating v

information

vision pictures

assume

high

because

only

to

uses

key, and among

compu-

ters took

Leslie R. Groves

•

th«rtkval

nf

HWinn

exist.

derstanding

Scatter

speed

many-

oy

of

today's

the

The Voice of America and Radio

...

cannot help

respectively

in

L

,

difference between

the

first-born

an

Europe, where similar

in

differences

miles

l

to ^mainland

hnked

ours,

been

obstacle

from

transmissions

country
Dr. Allen

not

has

insurmountable

and

than

standards

However,

reli¬

ably at dis¬
tances
up
to
2C0

course,

different

re¬

ceived

of

which it,has developed, it is the

Actually

Maine,.

Limestone,

from

m'leus- The new i "Texas, Tower"
offshore radar stations will be

true that EuiCACVidiun
television o j o I c ill o use
systems

is,

ypccllj
ropean

VHF

velopment.

to Thule, Greenland. Scatter

transmitter locations-are

These

duced to the simplest forms from

gationandde-

to the publication T*]
Digest,
and-* I quote;

trans-y
such that distances between trans- mission is used to connect stations
mitters"
are
well
within
the in Arctic continental defense
capabilities of scatter transmis- radar "DEW" line. Bell system has
sion.
This is not a visionary installed
another multi-channelj.
proposal, but is completely-tech- system for military use, with IJHFt
nically feasible today.
relay hops as great as 225 to 250

There just
isn't
enough

c o

missions

„

jobs with
,

establishments.

According

more

v

used to pry a stone out of the
ground.
r There'is nothing evilin the
word or in what it stands for. Re-

Saudi Arabia for use

in

petroleum pipeline.

a

-

less drudgery.

-

For some years now, the world
' / "' in general has recognized that high
Finally, there are the applica-' speed computers were important
tions by the Military and defense in the field of scientific investi-

struction

UHF scatter transmission route.

t ion.

a

week; (3) cost reduction; and (4) creation of

u

William Halstead and his from the August 6th issue—quote
"Unitel" organization have been —"For the last 18 months, Air ;
one of the most enthusiastic pro- Force has been operating high—ponents of global television; a reliability VHF radio link, carry-;
possible North Atlantic VHF* or jng multi-channel teletype trans-.

made

be

-?*•

-

a

Gen. Groves recounts these*
work eliminated from decisions with

up-to-the-minute^ facts of the general economic picture, com- r
petitors% probable position, condition of the industry, present
and "future; (2) decreasing the lengthened managerial work

-

Mr,

To what extent commercial use
can

:

guess

understanding that
system is presently under con-

Television

Jn communications

-

handling data.

advantages:.(1)

.:
v

It is my

tive.

is underscored.

*

of automation in

v

such opera¬
be competi¬

for

communication

prodding reluctant management to accept this higher form

in

••

provide reliable

could

if

speed electronic computers for business and scientific fields

•

dis-

Project director presents merits of high

Manhattan

Former

.

Conceivably, scatter trans¬

mission

tions

Remington Rand Division, Sperry Rand Corp.

liquids

over-tremendous

gas

tances.

np-to-the-minute operatline field. The trans-ocean

possibilities for better international

television

equipment

used to monitor the flow of

U.S.A., Ret.*

By LT. GENERAL LESLIE R. GROVES,

Vice-President and Chairman Administrative Committee

where microis extensively

pipeline field,

wave
^

central data machine computing

a

ing details, and (5) be used in pipe

Management Eyes the Computer

plants pro¬

complete and up to the
minute operating details of a large
operation. We can envision such
use
by the Government, by the
Military, by railroads—in fact by
all organizations with widespread
communication problems.
An immediate application-is in

viding

Competitive Usages

And Its

envision the scatter

can

you

transmission to Cceniral computer

New Communication Technique

^

.Thursday, March 15, 1956

..

(1302)

previously with Rob-

ert W. Baird & Co.

be

a

—u.

UNIVAC or a simple stick teresting tasks. Nor is it evil to
y Gten-Groves before the

{££*£? Fer'ierisss

""'

"

increase the worker's hourly production, so that he can work a 40--

Continued on page 57

.

•

Volume 183
-

/

■

Number 5516

:

The Commercial and Financial Chronicle

...

-

(1303)

.

f

RCA's First
Billion-Dollar Year
The Radio

Results at

Corporation of America in 1955 did

V

from

the

largest volume of business in its
36-year history, exceeding one billion

J.''yv.vks!•* ' '

Products

puts RCA among the top >

Profit

•

United States.'

X

1955,'compared '
with $940,950,000 in 1954, an increase of i
per cent.
Net

-

;

.

profit before Federal income

Per

;

1955

•

taxes

;

Per

y

over

-

Federal

'

1954
J

"

V

•

$1,055,266,000

$940,950,000

12.1%

7

10.3%

83,501,000

previous year

9.5%

share
Income

income

5.72

52,582,000

profit before Federal f

on

/ ''y\\v ■'' '

•' "

42,976,000
'

■

7 V<:

52.5%

51.5%

3.75

3.06

47,525,000

40,525,000

4,5%

4.3%

3.16

2.66

3,153,000

3,153,000

,

share

common

.

income
Per cent to

security, property tax, and';

other state and local taxes totaled

Per

....;

$66,611,000 in 1955. In addition, the Cor¬

products and services sold
share

common

Preferred Dividends Declared

poration paid excise taxes of $31,387,000,
making*, the total 1955^ tax bill
$97,998,900, an amount equivalent to

for

8.9%

; ; •

6.91

on

,

on

Net Profit

Corporation's

•:

products and services sold

common

Per cent to

with $2.66 in 1954.

taxes, social

■

Report

100,107,000

Federal Taxes

$47,525,000. Earnings per share of Com¬
Stock were $3.16 in 1955,
compared

The

.-V'•,

taxes

mon

}

72

Federal Taxes

before

Per cent to

$100,107,000, and after taxes,

was

■.

Services Sold

amount¬

ed to $1,055,266,000 in

12

v;

Annual

Income

•>

products and services

and

Per cent increase

twenty-five industrial companies in the
Sales of

;-.

RCA 1955

..

dollars in sales for the first time. This
achievement

Glance

a

'

1

Year

Per share

3.50

.

3.50

<

$6.98 per Common Share.
Dividends

Common Dividends Declared

y

.

totaling $24,069,000-

for

were

declared

by RCA for 1955. This included
$3.50 per share on the Preferred Stock
and $1.50
per share on the Common
Stock, against $1.35 for 1954.
Color television—the
compatible sys¬
tem
pioneered and developed bV RCA—
continued to
gain momentum during
1955. The National
Broadcasting Com¬
pany expanded its color programing
and RCA Victor introduced the first

':

for

206,020,000

257,682,000

234,199,000

Working Capital

327,175,000

234,865,000

3.1 to 1

2.6 to 1

31,039,000

34,290,000

19,123,000

16,260,000

157,994,000

151,459,000

78,500

70,500

at

Year End

Ratio of current assets to current

liabilities

out¬
l

Additions

to

Depreciation
Net Plant

service

fully justifies the
long years of experimentation and the mil¬
lions of dollars which RCA has devoted

to

scientific research and

basis for

engineering

Plant
of

and

Plant

Equipment
and

Number

*

of

as a

leadership and steady growth.

Electronics is
is

born

a

science in which

Equipment

and

-

4

.

of

Employees

at *

at

Close

Year

,..

.

■

v;

prog¬

of

change. The American
public's spontaneous acceptance of new
products and services is highly encour¬
aging to scientific research. Eighty per
of RCA's total sales in 1955

cent

Equipment

Year End

.

ress

182,549,000

Stockholders' Equity at Year End

Successful establishment of color tele¬
a new

22,052,000

at

Year End

,

as

1.35

24,069,000

Year

Reinvested Earnings

bright for color TV to move for¬
with increased
rapidity in 1956.
'

vision

18,899,000

1.50

Total Dividends Declared

look is
ward

20,916,000

Per share

com¬

plete line of color TV receivers. The

Year

products and services which did

were

A copy

of RCA Annual Report for 1955 will he sent upon request.
Corporation of America, 30 Rockefeller Plaza, N. Y. 20

Write Radio

in

BOARD

OF

DIRECTORS

not exist,

'

or were

not

commercially

John T. Caiiill

economic advance to the status of

a one-4

billion-dollar sales unit in American in-

•

dustry. Our scientific, manufacturing and

Edward F. McGrady

George L. Harrison

William E.

Frank M. Folsom

ago.

John Hays Hammond, Jr.

Elmer W. Encstrom

developed, ten

Research, development and
engineering have spearheaded RCA's
years

Mrs. Douglas Horton

David Sarnoff

Harry C. Ingles

Walter Bedell Smith

Harry C. IIagerty

Robinson

-

J

7

'communications facilities
vices

the

O

cliarles b.

jolliffe

are

integral ser¬
which contribute substantially to

strength and national security of the

United States.




Chairman of

the Board

Radio Corporation
President

Electronics for

of

America

Living

:

ji

v

if *

Financial Chronicle... Thursday, March 15, 1956*

The Commercial and

(1304)

J6

widely-

ested investor. Figures are

Investing in Electronics—
Some Problems and Pit-Falls
_

cautious to

a

Since there is

Commenting

must

interest

academic

than

more

investors. Items such

ence

other things,
and the sale of
strategic goods to Communist Bloc. Futility of economic aid
is explored and Anglo-American Middle East agreement is urged

a

servicing, with a high labor-cost
content,
or
total
broadcasting
revenue
or
the revenues arising
from
distribution functions are
certainly
much

enough,

real

but

how

England to Russia will compel,

dangerous widening of Britain's dollar

Eng.—Following

LONDON,

by

investor?

the

on

the sudden decision of King Hus-

benefit^from thern^ can be sejn cf Jordan to

realized

the relationship of sterling rate and oil depend¬
diversion

on

the Middle East, British Economist believes

to

of oil from

to

appliance

as

PAUL EINZIG

By

disparaging
these
figures,
we
point out that included in
the current and projected totals
are sizable items that are of little

York City

an

remove Lt.

Profit Margins

Arab

Le-

this

that

ting

industry has

a

golden future,
discuss certain

««

*

leave

much
Ernest

Sharpe

«he

proaching

An

ery)

be

to

desired

investment.

of

-

publicized expansion of the Rus-

covered

iyn

the

•

on

following

investor ap-

industry
indisfor the first time,
may face certain difficulties and
made

which

should

he

been in

be

gory.
range

chooses for now to ign<>re these tries, one is inclined to wonder if
"outsiders" and concentrate only the trend in TV and newer eleeon the companies which clearly tronic equipment markets is not
great Dofentfal" wniie 'th^daneers identify themselves full-time with likely to "follow the same pattern,
Wentify themselves full-time with likely to follow the same pattern,
poieniiai, while tne dangers
nroof
t*r*«xirtvi
in
result
mainlv
from
a
common
electronics, his problem is not Admitting that great growth in
ten dene vnf
inll? tnTn eased.
volume is still ahead for the
eralize
ahom
°/tneir
xx
k ^
xr,
♦
xr
whole electronic industry, how
"electronic ' Generalization alaout
y d EIectromc Flrms
profitable will it be for many inelectronic issues ha« nlrnHv wSt
Some of the most easily-ldentl" dividual companies? Bearing that
manv
investors
heavilv
if
fied electronic concerns are question in mind, the investor will
curred
f,it,ire
nnlirvJn nothing m?re than assemblers of want to be sure that the company
easily be the cause of
home aPPliances> ,such as TV and he selects has the ability not only
beine lost than
made
in
these rad"> sets, or specialized suppliers
to grow bigger but to make money
securities
of the comP°nent Parts required in the process. '■
same

dynamic character-

It.

.

t

U1—

o

.

monev

by these assemblers. Many others
limited line of equipment for

investor

approaching

mately

UntflTh?s2

"hers

manufacturers
of
equipment, components

hardware, but less than 10%

OF

STOCK and BOND HOOSES
book

page

all

containing
8,657
United States and

cities.
Listings are arranged
geographically
and
alphabetically,
and
comprehensively detailed:

are

under

name

which

business

is

con¬

ducted and date established

Street,

Address,

District
General
of

Securities

Names
of

including

Post

Office

of

of

Business

&

Class

Handled

Partners

or

Officers,

Names

Department Heads

Stock

Exchange and Association
berships (including N.A.S.D.)

Phone

Numbers—Private

tions—Wire

An

—

Clearance

ALPHABETICAL

showing city

Phone

Systems—Teletype

Correspondents

in

the

Mem¬

HERBERT D.
25

Park Place

of the reasons why

tables

toward

the1 Middle

East

]jes

precisely in the desire to secure control over the oil supply.
such
^
^

trolled" ohY

Such

tvouldTe1 Brit

ain»s plight as a result of the loss
of control

over

her share of Mid-

of

-

™2

™

,

T

•

.

,t ^
' impelled^ to lift

wn™

M

a

If

the

need

to

much

buy

fluence in the Middle East, Britain
should aim at securing economic
influence by means of economic
assistance on a large scale. AI-

though the suggestion came from

new

Leader

of

the

Labor

the existing pressure, Party, Mr. Gaitskell, who, as an

ex-Chancellor of the Exchequer is
an economic expert, it seems to be
utterly devoid of any sense of
During the course of the de- reality. Those Arab countries

even

may

ha/been

increase
0f

financing

Russia and Oil

bate on the situation in the Middie East on March 7, it was-argued by opposition speakers that
there is no cause for alarm be-

which produce oil do not require
British economic assistance. The
less fortunately placed Arab
countries would, of course, need

cause

a

supply

great deal of economic assistbut, judging from past experience, it would be idle to expect them to shape their political
and economic policies in a sense
favorable to Britain out of sheer

however, unconvincing. It is true,

ceived In any case the trouble

the Middle Eastern oil
production, refining and transport, which is at' present under
British control, is organized in
any case in a wa,y that whoever
controls

it has

to

sell the

s" bSJ"

purpose

larger

.

inventories

the

ance,

■« -

Middle

Eastern

producers

^a^

1S

in

existing

conditions

are" r-iativeiy ^ew'% hi £It bUt I101,6 o£ Uof new products and would find it difficult to discover Britain is not in a position to
r»l a*bvelv tew. xnis does not
has been to finance
development
Continued on page 56
that only these, purest of
SSTas a grou^p, the elec- at short notice ""^native marthe
mean

prosper.
On the
of the hvbrid-type
electromc companies which com-

thev

Numbers—

of

rre

will

pure,

contrary,

oping

some

all

firms

located

is

limp fabrikoid—$12

by

realistically

diversified

devel-

markets

in

appliances, utility apparatus, communications, military equipment,
etc., are more likely to survive
the

in

long-run The point to be
is

investor

that,

determines

unless

m

the

advance

the real nature of the "electronic"
company to be selected, he may
later find his money has been tied

in

of

the

one

that is completely

industry's

out
main-stream of

progress
YOUR

-

-

.

one

are

up

ENTER

company

ahead

forge

e'6c-

highly-vulnerable,
he
of
truly-elec-

remembered

another valuable feature.

Bound in durable

standard

ot

number

Connec¬

Arrangements.

ROSTER

which

sort

the

promise

Numbers

Character

t\

Indeed,

Moscow has reached out her ten—

„

Canadian

Firm

anization.

larger quantities of dollar oil is the

ss —is ss.'a
finds

covering

gold.

aiming to
have to
borrow on future profits to do it.
tricai equipment or parts they had
Qn this matter of borrowing it is
made
tor
years
under
a
nonrevealing to chart the large inelectronic
designation.
By
the crease in ^ebt 0f leading elecsame

and

"Security Dealers of North America"
1,600

Dart

that Paft °f

the

unless

Considering the costly research added to

The

listings

that

disinflationary
their hoped-for
effect, at the present rate the year
may close with another net loss of
and,

develop more diversitica- years lmmediately ahead. Just to
an£iai, strength, tew stay even with the competition in
J."
S"
this field requires heavy expendik„"t' tures on research and developcompanies xurn our 10 De, on ciose
tne

A

in

e

measures produce

snn

examination, mainly producers of

DIRECTORY

supply
is
barely
sufficient to
cover expanding requirements resuiting from ambitious industrial
expansion and agricultural mech-

on

mmta^v
easy for many electronic commnrr diversifirr Panies not to make money in the

small

deTClon

?

approxi-

are

4,000

electronic
and

There

status.

~

war,

to believe that the

^ 2Lari^ "nf ™v2™m2nta<1 requirements for growth in this the result would be disastrous.
nroerammine and amStfons
industry, it is going to be quite
.
. oj.

this

industry is that of finding the
"truly-electronic" companies
among
the multitudes
claiming
that

the

equipment tor the

One of the first problems faced
an

>

, ...

the

since

output
reason

considerable widening
"dollar gap." In any case, ster- strategic list, regardless of its efling's position is none too strong, feet on American opinion,
Even during the favorable season
in the course of the debate it
of the first half of the year, the was suggested that, instead of
gold inflow was barely a trickle, trying to maintain political in¬

Development Costs

concentrate only on producing a

Truly-Electronic?

by

—

oil

there is

oil rec^\r^tntiiia.tia,ne^if™n?
the Middle Eastern oilfields bloc in order to be able to pay
Should the supplies be diverted for Commumst-controlled oil.
from Britain, widening meanthe insist government would have the
it would of
to
from Britain, it would mean a I he
rnnsidprahlp
drastic revision of

v

more

.

sian

large

a

...
.
,,
a™
About o0% of^ Britain s total the ban on the export of many

radio and older appliance indus-

Many of these difficulties arise

fettothat7m STfnSSS?

^nflnen

electronics cateRemembering the longprofit margin slide of the

aircraft entertainment

the

industry may also become a major
competitor in commercial electronics. But even if the investor

aware.

om
from the

-

rate One feirin'sterUngT'tempWrflirit
electronic w
indicated the view taken in
entertain- inte'rnational markets about the

money at a satisfactory
of the more profitable

markets has

...

East

produced

„„

peace-time,

real

of

or

dangers of

the biggest

among

__

Middle

JSJ* 3L?,?; rM
extent to Which Britain's oil sup- 1^1^ 011 that she w™d
craft, are already invading civilian is said to be providing 70% of ,ies from the Middle East d£ ^ compe le to buy Soviet oil
industrial markets. On the return the present total business in this Dends on the majntenance of potL !!! ?,!

standpoint

this

criminately,

be

may

_

factors m production of electronic

from

be di-

^though it re-

that should be highly encouraging

f

1_

-

there would

just since 1950. On the face of it,

a

i

i

in the
of the

verted to the Soviet bloc of countries. Notwithstanding the much

'

,

part

oil

dustries" (notably office machin-

we,

admit-

while

real danger that, should Rus-

a

drop in sterling. Even

that"

if

vestors

is

sian influence gain control

Using such over-all figures, it is
to claim that output of the
electronics industry has doubled

easy

less-happy aspects of its
present. With

describing the great future
promise of electronics, it may be
more
helpful to interested in-

kets in the free world. The trouble
is that the oil supply is coveted

gion,- there
was
a
sudden

the industry's output. Of this lat- to investors. But look at what has
d a y,,
i t s
ter group there are probably less been happening to profit margins
w
e akness
than a hundred companies of as the industry's gross climbed.
gave a forcesufficient size to interest
the A gradual shrinkage has taken
ful
reminder
average investor. Still, the prob- place. Taking 10 -.of the largest
;-of the - extent
lem of selection is not restricted electronic., equipment makers,
to which sterto these companies only, since the some of which have done exceedling depends
electronics art is practiced as a ingly well profitwise, we find that
W B * if
s
side-line in many industries. Some net on the average has increased
position jn
large aircraft manufacturers, of- since 1950 only half as much as
pr. paui Einzig
the
Middle
fice equipment makers, automo- has gross. Competitive pricing has
tive parts companies, et" al., have pushed 4-Unvi
unit sellingAnlrt
prices down East.^. Beyond doubt, the weaki'
f-'n

ture

among

gap

Gen- by the Soviet Union, so that there

Glubb from the command of
the

of these account for over 90% of

lack of litera-

no

thought of

decade. With no

next

indiscriminate approach to elec¬
tronics investment, Goodbody's electronic specialist disap¬
proves
tendency to generalize about any stock labeled
"electronic," particularly since it is so difficult to evaluate a
small but "truly-electronic" company from a diversified firm
possessing a much larger electronics division. Mr. Sharpe
notes: (1) electronic growth forecasts usually include data of
no benefit to the investor;
(2) profit shrinkage with growth
due to competitive prices going down faster than unit costs;
(3) high development costs constitutes a problem for most
smaller companies, and (4) electronics industry is apt to
follow the auto industry pattern of mergers and diversification.

Preferring

Sterling Strength

$10 billion youth, destined to at
double in size within the

least

York Stock Exchange

New

Members

a

SIIARPE

By ERNEST

Goodbody & Company, New

Middle East Oil and

quoted to show that in the last 15
years
the industry has
grown
from a half-billion dollar baby to

ORDER

SEIBERT

&

Electronics Growth Composition

CO., INC.

REctor 2-9570




This

matter

more

of

electronics

tre-

mendous past and projected progress
should also be subjected to
careful examination

by the inter-

money

industry spends
on developother

and time

ment and research than any

industry. This applies not only to
the giants of the

^he smaller

industry but also

concerns.

country-wide

vealed

that

tronic

the

A recent

of

group

research

electrical-elec-

led all others in
outlay by a substantial
v,™

-a

the electronics
rapid changes taking place
industry.

^ industry s economics,

RePeated obsolescence of products
Continued

Available in New York City

Offered subject to prior

sale

—

Write

or

This

feature of continuous change is
one of thf, m.os^ d^rbing influ-

^nces

January 1901 through 1951

*

„

These l\eayy outlays for researcl1 ,a!? development in part
af6 ,n®c.essilai;ed
the

Bound Set of "CHRONICLES"
From

margin.

rrU„'

"FOR SALE"

firms
employees re¬

survey

with jess than 500

in

TODAY

New York 7, N. Y.

trical-electronics

on page

23

Phone REctor 2-9570
.

Edwin L. Beck

c/o Chronicle, 25

Park PL N. Y. 7

Volume 183

Number 5516

.

Commercial and Financial Chronicle
The

..

(1305)

How Motorola has
the world's

largest exclusive

electronics manufacturer...
ducer of black-and-white

Practically since the day we opened our doors,.
27 years ago,
one

-

Motorola has been dedicated

to

thing: specializing and diversifying within

the field of electronics.

Electronic

are woven

into the

everyday life of practically everybody, and for
creasing number of businesses. Many
of electronics

in¬

applications

awaiting attention. And Motorola has

are

right along with the world's hunger for elec¬

grown

tronic

new

an

products. Today

carried

our

COMMUNICATIONS AND ELECTRONICS

munications systems.

products is

our

of America's

most

in sales of

tion,

car

HANDIE-TALKIE radio paging unit.

are a

radios

as

original equipment for

leading makes. And

we are

the leader

'56 model

country's military needs, working

most

on many

of the

challenging scientific problems in the world today,

including

some

which

are

literally "out of this world."

TRANSISTORS

also making pushbutton gearshifts for

A revolution is under way

cars.

EQUIPMENT

primary research laboratory and producer for

radios for individual installation. In addi¬

we are now

many

a

com¬

One of the recently announced

electronic specialization has

AUTOMOTIVE PRODUCTS

car

mobile and

portable radios and industrial microwave relay

ADVANCED MILITARY

produces

front in what

Motorola is the world leader in two-way

We

Motorola

us up

Color TV.

into:

us

placed

promises to be the biggest home entertainment market
yet:

products and problems

sets.' Pioneering work by our

scientists in Color TV has

tronics, based

on

in the whole field of elec¬

the transistor. Motorola has taken

a

HOME RADIOS

Motorola also makes and sells table, clock and
radios and
know that

leading position in production, particularly of high

portable

phonographs. And you'll be interested
we

sold

more

power

and high-frequency transistors.

to

By specializing, Motorola has not dissipated its

radios in 1955 than ever!

ener¬

gies and has accumulated incomparable skills. By di¬
TELEVISION

One of television's




versification within electronics it has

Big Four, Motorola is

a

prime

pro¬

number of strong

strings for its bow aiming into the future.

E MOTOROLA
World's Largest Exclusive

a

Electronics Manufacturer

17

The Commercial and

-

18

Financial Chronicle

.

Thursday, March 15, 1956

.

.

(1306)

been

Magnavox Company,

been expended

three

to

due

the

reasons:

of

functions

tremendous

rapidity of
industrial television in automation and quality control. Mr.
Sturgeon points out: (1) present $8 billion electronic industry
should reach $20 billion in 1965; (2) saturation predictions
for Black and White TV market has so far been proved wrong;
(3) Color receiver sales are limited by tube supply, high price
tag and insufficient programming, and (4) Color is not ex¬
pected to supercede or eliminate Black and White. Describes
development, with Eastman Kodak Company, of the data
converter, Minicard System, and mercuric oxide batteries,

Magnavox has not been producing
its own color chassis, but has been

using

the

in

color

you • see
store

sales

of
this

way

the

information.. The
piece of

cells,

and

the

The

in¬

dustry

uses

the,term

gen¬

erally in con¬
nection with

product

any

which

equivalent of 12 pages

the

pictures, maps, etc. of an orig¬
inal size up to 8V2" x 14" and, in

tubes,

although

the

is

fre¬

term

quently given
a

„

u

m

c

li

broader
S.

John

connotation.

Sturgeon

The

electronic

rapidly and

industry has grown so

into so many different
Lreas that it is exceedingly diffi¬
cult for the average man to com¬

has spread

happening.

prehend what is really
Each
i

new

discovery seems to open

tremendous new areas. Some
the more
important devices

p

of

electronics arev television,
high fidelity phonographs,
: adar, and guided missiles. Some
ureas
less known to the layman
which are being invaded by elec-

Vising

radio,

fronics

the business machine

are

field where electronic

brains have

actually

which

developed

Leen

Lave

unbelievable memory func¬

tions.

Industrial television is de-

v

eloping rapidly and is being

used

extensively in connection with the

quality control of products, and
in

aiding
•From

Cie

an

automation

jJysts,

programs.

address by Mr. Sturgeon to

of 'Financial AnRichmond, Va., Feb. 20, 1956.

Richmond

next 10 years.

sede

of

Society

electronic

Things are

moving so fast tech¬

developed.
*

*

*

market)has been excellent
is

and

for us

Currently holding up very

well.

Reproduction

Music

reproduction

music

in

Interest

high degree of realism is
broader than it has ever been be¬

with

a

and the interest line seems
climbing at a very steady
rate.
Our sales of this product

fore,
to

be

for the six months ended Dec. 31,
several oc¬ 1955 were 80% ahead of the same
casions in the past where many period last year. This is due not
people have come to the conclu¬ only to the increased interest in
sion that the market for black- music generally, but to increased
and-white
television was satu¬ public acceptance of our product.
rated. These opinions have so far Maganavox has the widest §rray
been
proved wrong, as is evi¬ of high fidelity models in thfe in¬
denced by the fact that in spite dustry
ranging in
price from
of there being some 37 V2 million $99.50 to $595.00.
Lv
television sets in homes in
the
Defense & Industry Markets
country today, the industry pro¬
As I mentioned before,, it has
duced last year more than seven
been necessary for us to curtail
million sets, and expects to pro¬
the activities of our engineering
duce almost as many in 1956. It is
staff and to concentrate their ef¬
estimated that approximately one- forts in a limited number of major
third of the sets sold in 1955 were areas. These are: f '

have

There

for

replacement,

and

of the sets now

40%
been

in

use

S

:

been

for

abo

three

(1) Airborne radar and

that

in use have
years

(2) Communication

or

fire con¬

L

trol systems.

and naviga¬

tion systems.

devices.

(3) Undersea warfare

Electro-chemical and elec¬

an

offer to sell nor a solicitation
buy these securities. The offering is made

offer to

an

of

only by the Prospectus.
NEW ISSUE

525,000 Shares

LONG ISLAND

ARENA, INC.

cents

share)

per

Price: $1.50 per

Share

next

ness

consists
which

our

York Corporation, in¬

22^-acre

field

J.

James

an

indoor

arena on a

site at

;

of

our

busi¬

&

and meetings.

we

and

military

25

elec-

limited

somewhat
tained

4, N. Y.

a

LONG ISLAND

Name

a

me

copy

of the Prospectus relating to the common

stock of

,

utilized

being




these

and

batteries

profitable business.

Heeling

attended the ses¬
Schwieger, a
Vice-President of the New York

the Association,
sion

as

Stock

did

John

This

Exchange.
.

-Telephone

S.

South La Salle Street.

Canada

is

EXCHANGE

for circular—no obligation—no

solicitation

Probab'y one of the

was

originally

Members

\

the

Kodak Co. and we have

participated
during

conceived by

the

in
last

contribution, has

the
two

development
years.

been

Our

largely in

-

Distributors of Oil'

AMERICAN STOCK

C. E. STOLTZ & CO.

1

in

which
areas.

Eastman

Street

City

new

Growing O.l Companies in

Send coupon

ing completion is what is known as
the Minicard System. .This system

—

Herbert

LISTED

we

inost important developments near-

ARENA, INC.

——

that

excellent potential for a

an

tremendous

other
send

feel

I

run.

have

Producers, Refiners and

volume of
appears to be

the

- have
at¬
amount of
knowledge and knowhow in this

Broad Street

NEW YORK

de¬

years
and are now
start a pilot production

ready to

EXPLORATION, Ltd.

more

work
Please

doing

this battery

ANGLO-AMERICAN

by
by business estab¬

While

lishments.

York;

Fastest

computer systems used

•tronic

request

to make
flexible the

and

business in this area

DUNNE & CO

on

One of the

In the business machine
have done extensive de¬

versatile

financing by the Company.
upon

been

several

for

E. Hutton &

generally of prod¬
an
outgrowth of
and
development

developed

been

The issue represents new

Prospectus will be sent

have

—

Lee, W.

New

Co.,

velopment work in two areas: the
being in the Data Converter
field. Data Converter units have

wrestling, ice show, circus, rodeo, horse show, dog show,
dramatic performances, public ice skating and dancing. The
arena will also accommodate conventions, industrial exhibi¬
tions. trade shows

We

velopment work

New York; Marco F. Hellman, J. Barth & Co., San Fran¬
cisco; Sewell S. Watts, Jr., Baker,
Watts & Co., Baltimore; Robert J.

first

build and operate

used.

are

research

program.

Commack, Long Island. According to present plans,
the attractions will include ice hockey, basketball, boxing,

to

in output as the

Lewis,

division

ucts

LONG ISLAND ARENA, INC., a New

;

(5) Missiles.

The

tends

crease

.

Common Stock
(Par Value 10

up, so you

meeting of the Board is
one
of three held
annually in
Estabrook & Co., New
leading cities around the country
While
our
current volume of York; John D. Baker, Reynolds
& Co., New York; John D. Burge, by this 43 year old trade body to
these
products
represents only
discuss problems of the industry.
about 33% of our total business, Ball, Burge & Kraus, Cleveland;
Henry M. Cook, Newhard, Cook
we
expect a substantial increase
Barclay Inv. Adds
Co.,
St.
Louis;
Charles P.
in
the
not
far
distant future, &
(Special to The Financial Chronicle)
largely as a result of the exten¬ Cooley, Jr., Cooley & Company,
CHICAGO, 111.— Helen Ovensive
Research
&
Development Hartford; Roger Cortesi, Au.chinden has been added to the staff
Program.
closs, Parker & Redpath, New
cf
Earclay Investment
Co., 39
York; David S. Foster, Pershing
Data Converter Field

tro-mechanical components.

neither

is all used
don't get a gradual de¬
battery is

stant, until the battery

Co.,

more.

(4)

This advertisement is

hearing aids—transistorized; port¬
able radios, etc. The second char¬
acteristic is that the output is con¬

Governors Hall. Morgan Stanley & Co., New
of the Association of Stock Ex¬ York; Van R. Halsey, Carlisle &
Jacquelin, New York; James A.
change Firms held a two day
Hetherington, II, Goodbody & Co.,
meeting at the Shamrock Hilton,
New York; Henry Hornblower, II,
March
12-14.
The group were
Hornblower & Weeks, Boston; E.
the guests of the following com¬
Jansen Hunt, White, Weld & Co.,
panies at dinner there:
New
York;
Lloyd
W.
Mason,
Anderson,
Clayton & Co.;
Paine, Webber, Jackson & Curtis,
Champion Paper & Fibre Co.;
New York; Michael W. McCarthy,
Continental Oil Co.; El Paso Nat¬
Merrill Lynch, Pierce, Fenner &
ural Gas Co.; Federated Depart¬
New York; Herbert O.
ment Stores (Foley's); Gulf Oil Beane,
Peet, H. O. Peet & Company,
Corp.; Houston Lighting & Power
Kansas City; John J. Phelan, Nash
Co.; Houston Oil Co. of4 Texas;
& Co., New York; Harry C. Piper,
Humble Oil & Refining Co.; Reed
Roller Bit Co.; Rohm & Haas Co.; Jr., Piper, Jaffray & Hopwood,
Minneapolis;
James
H.
Scott,
Sears, Roebuck & Co.; Shell Oil
Scott & Stringfellow, Richmond;
Co.; The Texas Co.; Texas Gulf
Producing Co.; Texas Gulf Sul¬ Wyckliffe Shreve, Hayden, Stone
& Co., New York; Edward Starr,
phur Co.; United Gas Corp.
Shares of these companies are, Jr., Drexel & Co., Philadelphia;
John J. Sullivan, Bosworth, Sul¬
listed
on
either the New York
livan & Co., Denver; Edward F.
Stock Exchange or the American
Thompson, Jr., Lamson Bros. &
Stock Exchange.
Co.. Chicago; James G, Tremaine,
Edward Roian, Partner of RoGude, Winmill & Co., New York;
tan, Mosle & Co., and a Regional
Governor of the Association, acted- Jay N, Whipple, Bacon, Whipple
& Co., Chicago; Lloyd C. Young,
as Toastmaster.
■'
—
In addition to Mr. Rotan,the Lester, Ryons & Co., Los Angeles.
Hal H. Dewar, Partner in DeGovernors attending the meeting,
coming from 14 other cities, were, war, Robertson and Pancoast, San
Antonio, a former Governor of
as follows:
HOUSTON, Texas

black-and-white

The

both.

for

to come up
with a new product which we can
produce and sell. Their imagina¬
tions run wild and they see so
many
interesting problems and
possibilities that they are trying
to rush ahead without considering
the commercial aspects of those
things which they already have

characteristics.

-

which, of course,
makes them usable in products
where size is important, such as

Exchange Firms Govs. Hold Houston

is room

pensive and I feel there

them

for

important

very

color to super¬

or e 1 i m i n a t e" black-andwhite. It is inherently more ex¬

nically that it is a real problem
to slow down our engineers long

enough

I do not look for

equip¬

„

One is their size

programming to 80
pany which will permit the manu¬
hours per month and Columbia
facture and distribution of these
Broadcasting
System
has
an¬
systems. It is anticipated that the
nounced that they will increase
first
system will
be delivered
theirs rubstantially.V
'L

the production
products or prod¬
ucts containing electronic devices,
but it is estimated that it reached
some
$8 billion in 1955 and will
increase to some $20 billion in the
accurate figures on

and/or lease the

One.other promising area of re¬
iy4" in.dimension. This
information storage search and development work is
One Minicard, such as that related to mercuric oxide bat¬
here, can receive and teries. These batteries have two

increase their

uses

vacuum

sell

ment to users.

Certainly, it will not contribute
addition, can provide codme soace.
anything materially to our profit The
system is so designed that it
in 1954 and 1955 there were less
can
search minicards at an as¬
than 50,000 sets sold in the indus¬
tounding rate of speed (1,800 per
amongst company's manufacturing activities.
try, and in all probability 1956
minute) finding electronically the
The use of electronics in medicine, will not exceed 250,600 sets. The
Electronics is defined as that
required
film
or
information
education and many other fields increase in programming schedule
sought.
It will reduce storage
branch
of
physics which treats
for this fall should be very helpful
is almost unbelievable.
space by a factor of approximately"
with the emission, behavior, and
in improving the demand. Na¬
effects of electrons, especially in
1,000 to 1. Magnavox has entered
Production Figures
tional Broadcasting Company has
vacuum tubes,
into
a
cross-license
agreement
It
is
difficult to obtain any announced that they are going to with the Eastman Kodak Com¬
photoelectric
like.

Magnavox will manufacture
electronic
components
and

will

that

of

year.

$1

the

is

element.

system,
etc. I do not look for

from

volume

film

sound

own

our

cabinets,
too
much

film %" x

almost

to

by the time the first sys¬
tem is delivered. It is anticipated
million

Minicard itself is a small

buying-its chassis and also its
picture tube requirements from
RCA,
We have, however, been

by Eastman Kodak

amount

microfilm and those probably

correlate

and

A very

days.

of money has

Company in this development, and
our
own
development costs will

supply of of the IBM card tabulating equip¬
color picture tubes; secondly, the
ment.
The
Minicard System
high price tag; and, thirdly, the
through the use of electronics will
lack
of
adequate- programming.
record, code, store, arrange, find

Fort Wayne, Ind.

Magnavox executive defines and describes the
new
areas
of electronics, and the development

un¬

being the limited

first

next 90

substantial amount

han¬

dling the mechanical and photo¬
moving
graphic portions of the system.
slowly. This has probably
Basically the system performs the

very

Vice-President and Treasurer
The

you

as

Kodak

doubtedly know, has been

STURGEON*

By J. S.

television,

Colored

General

Electronics Industry in

Eastman

tem, with

the

within

electronic portion of the sys¬

the

Color Prospects

Address

25

Broad

American

Street,

Stock

Exchange

Kew York 4, N, Y.

Volume 183

Number 5516

The Commercial and Financial Chronicle

Aviation
Delta

Air

Lines

purchases

and

Communication

war

fleet

Collins

Weather

Collins continues to be the

—

Radar

Equipment for its entire post-

leading

supplier of airborne communication and naviga¬
tion

equipment and

major

a

instrumentation for airlines,
and business aircraft.

the

of

source

flight

military aviation,

Current aviation project:

development and

manufacture

of

a

new

lightweight line of airborne equipment.

Microwave
Continental

and

Sinclair

Pipe Line Companies

chase Collins Microwave for world's

communication

than

system

in

—

period

a

three years Collins has

pur¬

largest private
of

attained

a

less

strong

position in the field of Microwave communi¬

1955-56

cation, supplying the petroleum, telephone, and
utility industries. Collins Microwave designs
provide

120

to

up

Collins

Collins

is

channels,

Mechanical

supplying

communication

DEW Line

hr/~\

-"N*

\

O

>

*

of

DEW

the

Line

—

defense command

warn

invading aircraft.

a

the northern rim

across

centers

Collins research and de¬

>•'

velopment

'

cation

(

f
■

for

(Distant Early Warning Line) is

of America to

of

major portion

a

equipment

band of radar stations
i

■

incorporate the

Filter.

.

V ■'*;

also

k"

advanced

foremost in this

as

V:

in

long-range

communi¬

techniques has established the Company

continues

electronic

new

to

contribute

Collins

area.

heavily

the

to

Military. Services in air-ground communication,
air

navigation

guidance

and

and

instrumentation,

control,

missile
and

counter-measures

data transmission.

illustrating the'

scope

Export

United
VOR

and

diversity.,

Kingdom purchases

of this

tages

modern

recognized

around

installation

of Collins

at

More

than

stations

100

have

are

being

Collins

VOR

Bolivia,

was

South

or

manufactures

a

first

foreign broadcasting
ordered

broadcast transmitters during

Collins

the

America.

domestic and
installed

advan¬

many

facility

world.

Paz,

in

the

—

VOR

the

La

such installation

in the field of electronics

16 Collins ground-to-air

navigation stations

new

the

Collins

past year

—

complete line of AM

transmitters, speech input equipment, monitors,
and

antennas

Continued alertness in research and
has enabled Collins to

forefront

development

accessories.

be announced

to

as

a

soon

New

will

developments

keep Collins in the

major supplier to the expanding

broadcast equipment market.

anticipate successfully

the electronic needs of its customers in
many areas

of activity.

Amateur

Byrd
for

For

a

Collins

is

leadership in electronics, copies of the July 31, 1955
Report are available. Write to any office below —

expedition

with

line of radio

detailed report on the progress that has
established

Annual

Antarctic
contact

relies

outside

Collins

radio

Collins

r.ew

on

world

—

equipment for Amateur operators

being used by "Operation Deepfreeze"

now

for contact between Antarctic bases and the out¬
side

world.

sidered for

This

equipment line is being

con¬

long-range point-to-point communi¬

cation application

by the Military.

Components
Heavy demand expected for
—

Collins is

which

now

reduces

bulb

proves

LEADERSHIP

855

N.E.,

IN

another

ELECTRONICS

equipment
example

a

Collins component
new

tube shield

temperature rise

of former values and

CREATIVE

new

marketing

reliability.
of

to

55%

consequently greatly im¬
the

This

expanding

shield

is

line

of

superior components offered by Collins to other
electronics
35th

TEXAS

STREET
•

2700

W.

CEDAR
OLIVE

RAPIDS,
AVENUE,

AVENUE, NEW YORK 16, NEW YORK




•

IOWA

•

BURBANK,

1930 HI-LINE
CALIFORNIA

DRIVE,

DALLAS 2,

261

MADISON

•

1200 18th STREET N.W., WASHINGTON, D.C.

manufacturers..

The Commercial and

Financial Chronicle

.

.

Thursday, March 15, 1956

.

(1308)

20

Commercial and Savings Bants:
Equal Tax and Brandt Policy
Tax and Branch Policy
SCIIWULST*
Bowery Savings Bank

dictionary as

savings
and

I

our

—over

invited

was

tinguished

more

p
i
Earl

ings banks and savings and loan
associations
"would ' not
make

know, national

i.»
c
i,
i
♦
Schwulst

r
B.

both quasi-pub-

are

dutv

to

our

de-

Governments

discharging this

are

duty,

they must not only be vigilant to
restrain
unsafe,
misleading,
or

have

denied

are

most

to

I for

areas.

we

-n

than a mere
effects of in-

.

cannot
i

,

properly
-

.

regulate

in a vacuum.,

filled

by

our

and

savings

brash

cousins,

who

loans,

are

the
not

over

., „

unit

thic

nnr,nrri

,

c„h

...

.

banks and that accommercial banks. Let

savings

corded

to

a

spent

billion dollars in new

to the consumer

^ savlngs

energy?

"£-cb P°*"S

swers

time

Do

de-

.

commercial bank_ _adp

..

p°!

governmental

commercial

separate

the

bank

in

deposit

and

limits

and,

15

of the

business

relief were

such

if

financing

granted from the present double
taxation of dividends.

Did you

growth in 1955.

know

tliat two leading

corporations now have more
owners

than the entire

population of Detroit? New sta¬
tistics

medium-priced

an

interesting study of

happened since 1946 to

low-priced stocks and 15 me¬

dium-to-high-priced

all

growth

stocks, showing change

the

for

happen to the small

Magazine.

high- or

what has

earnings

state

same

an¬

article showing

revealing

Why will America

Reed's

dividends

share owner and to

low-priced stocks out-per¬

Here's

^ it substantially'the same hifestment powers as a savings
same

10% tax credit on

18 leading companies

on

show those

gaining, those losing

in number of share owners.

stocks?

savings

segregate its assets and

a

what would

;;;.v

form

§ C P SllOnS OT
units. If we create

Y P

a

those

include

A

other features

Qx * ™

to

mean

Atomic

Is

justified?

share
1

of the

O

..

in the March issue

exchange

al
Refiuiati0n

in

.

.

ers? You'll find Mr.

deposits in commercial banks

precision

.

.

recent years.

Share-owner

e„titled to accept and those sav.

universities, showing changes in

need 50 million new share own¬

is

bank

market?...How

about automation?

com^

oVTn

happen

World War II. What will

same 1tax treatment

Let us all agree, then, that with unR within the commercial bank,

tual

Electric's Chair¬

manufacturing facilities since

ilnci♦ SKS!

.

with

tells why his company

man

savins

"rnmmrrrial

a

of four heavily endowed

ings

Magazine.

a

qhall. rail

considerable

vacuum

facts, General

we

creating separate the commercial
witnin entity, which I
bank

respect to true thrift, deposits,
degree,
the there is an inequity between the
that exists today is being tax
treatment accorded to muor

I surest

alternative

sav^

-

March issue

of the exchange

Backing his optimism

f af^

„

that's what Philip

Reed makes in the

public in-

I believe we explore the practicability we
as an alternative, i suggest of
>
,thi
\h
nnmmprPiai

pa»c tour

J

-

.

amount of heat during stanj.iallv thp samp tax trpntmpnt
years' Is tue prmi
lege
accorded
mutual savings 2?®,
banks by the Revenue Act of 1951 be in a
bank
a
of making tax-free additions to a
. j".
.g .
.
,
,
,
reserve
for bad debts . until a without discrimination from a tax
surplus level of 12% is reached. standpoint B t
th ift deDOsit
I daresay there are at least a
u.e

optimistic appraisal of the

next decade

Commercial Savings Unit

oro

They

An

lines sep' .u
would be
of the in-

±

generous

T

a

53

on page

_

ation of the functional
arating these types
neither in the interest
stitutions nor in the

,

ments to eliminate or waterdown
is our
the provisions in question. I subthat the governments which reg- mit to you that this violates the
lilntn
-fnllir
nnd
foinlrr
in_
ulate us are fully and fairly in- ooonnfoH
accepted otinnotto nf n cnunrl
etiquette of
formed
on
all problems which symbiotic relationship,
,

t; Continued

this

in

need

the several distinct
banking institutions
now have. The obliter-

of

types

to serve the public. It
obligation to make sure

To

having deposit liabilities compar-

with

for

COuntry

necessary

legislate

.

savings .bank,

think there

one

and

room

practices; they have an sprinkling of people in this audistrong mandate to see ence who would not be deeply
that every banking institution has grieved to see this tax treatment
all such powers and privileges as denied to us.
There are othersare consistent with their assigned
none here today, I am sure—who
functions
in
the
economy
and have actively spearheaded move-

.

York

New

good years ahead

offered- only
banks and which
savings banks in

been

by commercial

equally

■.

thetical

General Electric sees

which tradi¬

services

other

unfair

us.

limited

are

statements, the assets, lia¬

added that if

be

should

it

think

this dis-

,

.

tense competition.

charged with the duty o{ seeing
that our banking systems remain

affect

banks and state

banks

member

competitive inequalities might be terest.

Federal

The

competitor.

lie

of time deposits) and as .to
investments and capital. As you
(5%

materially less competitive"
with commercial banks. To this I

Since then, I whjch

group.

-

sonable restrictions or burdens on

In

by the Federal Reserve
as
to
required.1 reserves

them

compelling uuiy to oui ue
nrnfit mnrp fr0m a
studv of
positors is best served by healthy can proiit more trom a stuay oi
competition
bv this I mean a causes than from a description of
coiiipcuuun
uy
ims i mean
freedom to compete for deposits eliects.
;v-^
which is unhampered by unreaOne issue that has generated a

sound.

of .

column

the „iast

in

shown,

bilities, and earnings ef a ^hypm-

"

compelling

State

comparative purposes, I have

Board

to you by

address

to

ago

.

and

continue

these

of my talk.
than fthree

regulated industries strongly more constructive
affected with the public interest, cataloguing of the

either

therefore

will

imposed

depart from

lie,

Our

and

operate under the requirements

Gaylord Freeman. He
has made it plain that the reduc¬
tion in, or the elimination of, a
bad debt reserve for mutual sav¬

have given a great deal of thought
~0cit/nmAntnnr!
it
nrv
to my assignment; and it ocno unfair advantage curred to me that discussion of a
commercial
bank proposal to eliminate some of the

We

friends.

tem

platform,

title

months

seek

—especially

main in the Federal Reserve Sys¬

I can

to

offer

obvious

be

announced

the

advantage

no

to this,

answer

better than to defer to my

no

ments

,

most

commercial

to

I

distributed

distinguished predecessor on this

that I intend to

now

contest

bankers

must

It

savings

we

do

%/. '!■: Competitive Inequalities

.

in

that

you

In

banks?

tionally

assure

this

benefit

terial

as in nature, such a
demands cooperation.

in-

The

me

tual

cial

to

all distinctions between mu¬

to both. In banking, consumer credit loans, .to ■ estabrelationship,lish trust departments, and to

or necessary

well

prize we both
seek is,, of
course, thrift
deposits^ but
let

institutions and to

Would it be of ma¬

economy.

basis for discussion of my

a

have prepared and
hypothetical state(Exhibits A and B) showing
savings banks and commer¬ the assets, liabilities, and earnings
savings units. Presumably, of a commercial bank with a ;
commercial banks will re¬
"commercial sayings unit.*
For
hope

reasonably

cannot

we

erase

As

proposal,

symbiotic re- these institutions will make se-

pgists refer to as a

the
disjunctive

deed.

Internal Revenue Code. Of course,

^pMjjj^^^^H'.Jationships—that is, the living to-^rjous efforts to get all the way in
Jf?
gether of two different species of the boat This is evidenced already
I
organism which is advantageous by agitation for the right to make

banks,
is

our

ng the status of commercial banks
in the Federal Reserve System.

_______

commercial

'or"

gated basis and have been taxed
under different provisions of the

some

be

can

difficulty—on

Never¬

of the inequalities
removed without disturbi¬

theless,

should commercial bankers persist in atIn es- tempting to put savings banks in
Applied to sence, the relationship .between the same boat with them so far as
savings be- mutual savings banks and com-«Federal income taxes are conm^rc*al banks is what the biol-.,cerned> they must anticipate that

banks

chosen

due

not

were

we

operated—without un¬
such a segre¬

have been

deposits.

of time

60%

to

mortgage investments

to

respect

through our associations,
play an important part.

is defined in the
"a contest for some

prize or advantage."
the competition for
tween

endeavor

both to mutual

commercial thrift departments and savr
ings banks providing commercial banks operate a completely
separate savings unit in terms of deposit limits, assets, earn¬
ings and investments. In return for this concession, Mr.
Schwulst asks commercial banks for similar branch power
privileges they deny savings banks. To place savings banksx
in the same tax position as commercial banks is viewed inad¬
visable on the grounds it would compel savings banks to go
into commercial banking business, raise interest rate to deposi¬
tors and raise deposit limits. : Mr. Schwulst says economy is
best served by healthy, fair competition, and encouraging thrift.
existing between

Competition

years

completely
successful.
We got
only half-a-loaf.
To take that
from us now would be injurious

inequity ,y.

bank executive favors removing tax

Prominent savings
now

this

In

By EARL B.
President,

It was for this
ago that the

savings bank industry resisted the

T "

n

1

in

m

1

five

reason

dustry.
For some years in this
state, the life insurance depart¬
ments of
mutual savings banks

restrain our

thrift will ultimately

economic growth.

in mar¬

exchange

the

Magazine,

a

pocket-size monthly for both
new

investors and experts,

fea¬

down-to-earth articles by

tures

company

presidents, editors and

ket values

making their desires and virtues
known to our legislators.
There
much

is

our

associations,
and

can

respective

state

and

national,

our

our

differences and present construe-

to

causes

the

must do to compose

time

of

same

banking

inequity, and at the
eliminate one of

this

remove

banking

two

join

should

Within the sprjng
who ire Sctreme^ well uS thpm'.
on

mnnthc

fp

io

the operations of our banking

system —Allan Sproul and Marriner Eccles—have expressed concern

at

the

labyrinth of diverse

duties, privileges, and practices of
the various types of organization
which

are

functioning in our fi-

nancial life.
a

Both have called for

thoroughgoing

study

of

this

problem by our Federal and State
Governments

for

reestablishing the

the

purpose

proper

oiitlioritxr

of

lines of
+•

t

authority of these institutions. In
such

a

study, we, individually and

.




enioy

not

comparable
bank.

to

of

course

continue

to

essary

treament

tax

mutual

a

It would

nn

in
in

denends
depends,

larffp
large

nnAiimnlntiAti

thn

mnasnrp
measure,

nnrl

return

investment. It may

prove your

on

with

nec-

the

Favorite common stocks

lege endowment
A look at the ten

knowledge of stocks,

clip the coupon now and send it

surprise you.

savings
be

apply

to

financial commentators. To im¬

in col¬

the

a

exchange

funds.

top equity hold¬

on

issues, the

twelve

Magazine is not sold

newsstands

or

by the

savings.

of

quarters
country
one

the

comes

form

or

About

Nothing New
The

tity

creation

within

ture

of

a

of

the

bank

separate

a

corporate
with

en¬

struc¬

segregation

the exchange

11 Wall

ot assets and with separate ac-

counting is not novel in the in■—
posit* means

a

deposit,

Magazine, Dept. 7

Street, New York 5, New

Enclosed is

$1

evidenced^ by

of the exchange

Magazine.

s

passbook, consisting of funds (i) de
5?s.jed,to thercredit of one or more in

name.

d,v,d"als» organization operated primarily
other or of.a corporation, association,

or

rollir!nno

:i~4-1

;_

credit in this
savings in

from

Anything

another.

_i

?._i i

,.

which

penalizes

or

discourages

educational. fraternal, or other similar
PurP°ses and not operated for profit: or
(ii)

in

which

the

entire

beneficial

in-

terest is held by one or more individuals
s"ch ® corporation, in respect or
association, to
and

other

which

organization,
deposit—"

York

(check, cash, money

order). Please send me the next 12

.

s.ii5SX«iSl.1.^1"™"°",.^"^
fny

three-

copy.

are

ADDRESS-

of

receive

dollar bill to

next

of which the dividends to stockpaid.
holders

M

The growth of our econ-

thrift.
Omy

address

1956.

problem,

First, we might consider the
reP.eal of the Code provisions
which enable the savings banks
mj^e. lax"h'ee additions to a
resefve> and place mu^ual. havmgs banks on the same
footmg taxwise as commercial
hanks. I think there are two princiPal objections to this course of
f ctlon'.f ^ the fir?' PIaee' °ur tax
laws> if they yould serve the nafional interest, must encourage

ment
by Mr. Schwulst before
the Annual Savings and Mortgage Con¬
ference sponsored by Savings and Mort¬
gage
Division of the American Bankers
Association, New York City, March 6,
♦An

to the

a

independent organization, there
no
apparent
reason
whv it

Should

Tw0 alternatives immediately tax against that portion of the
to mind. Let us explore earnings of the savings unit out

n^inpC0^UhnHtiPcnSw*ivr
t

seek

and

forces

solution

sensible

between
systems,
we

hostility

an

is

and average annual

city.

.state.

issues
TB

Volume 183

Number 5516...The Commercial and Financial Chronicle

THE

(1309)

COMPANY

TEXAS

Reports for

it.




Will
1954

1955

FINANCIAL
Net

income

$226,140,761

•

Net income per

sliare

Cash dividends

paid

•

•

$262,729,738

•

.....

•

•

9.57

8.24

»

»

116,624,624

102,971,238

.

.

•

.

.

•

B

•

4.25

3.75

Working capital (end of year)

.

.

•

•

•

538,658,293

474,193,629

Capital expenditures

•

.

•

B

•

283,090,555

299,141,092

Cash dividends

paid

.

.

per

.

share

.

.

.

Barrels per

OPERATING
Gross crude oil

Crude oil delivered

Refinery

runs

by pipe lines

........

Consolidated Balance Sheet

•

•

509,672

445,476

•

•

•

636,833

587,816

•

.

Product sales

O

•

•

634,550

559,532

•

•

i

630,418

570,992

December 31

LIABILITIES

ASSETS

'

K.

1955

CURRENT ASSETS:

$

265.312,018

$

.

$

able and accrued liabilities

161,570,501
234,157.603

729,973.023

642.110.466

$
III

till

in

l

M.I.

1

wi

134,443,255 $

Federal

Estimated

w

.

U.

PROPERTIES, PLANT, AND

MINORITY

............

"

depletion,

amortization

...

Net properties,

.

.

.

$2,440,239,547 $2,237,157,552
1.224.270.087

.

Par value

1,099,679,178

shares

plant, and equip$1,215,969,460
$

.

.

DEBT

191,314,730

$

167.916,837

208,968,985

$

214,903,949

9,275,252

$

$

9,570,189

28,328,570 $

of

$25

25,695,832

690,631,200 $

689,881,200

capital stock issued—
each

•

.

.

•

•

•

•

$

2,411,250

........

Undistributed earnings employed in
the

36,292,464

business

.

.

.

.

•

.

983.645,810

.

Total stockholders' equity

.

Consolidated Income Statement
1955

1954

$1,767,266,455

$1,574,369,713

GROSS INCOME:

123,233,079

121,425,721

$1,890,499,534

$1,695,795,434

$1,285,091,487

$1,178,320,296

Dividends, interest, and other income
>

OPERATING AND OTHER CHARGES:

Costs, operating, selling, and general expenses

55,629,285

Depreciation, depletion, amortization, and leases surrendered
Interest

charges

28,915,616

171,706,580

Dry hole costs

51,167,709

36,058,904

(other than income)

160,988,444

6,654,708

Provision for income

taxes

6,738,852

68,300,000

.

40,100,000

net

income of

a

•

NET INCOME FOR THE YEAR

A limited number
upon request to

of copies of the Company's Annual Report

are

available

the Secretary, 135 East 42nd Street, JSew York 17, JS. Y.

3,423,756
$1,469,654,673

$

Canadian subsidiary

4,328,832

$1,627,769,796

Minority interest in

$

•

262,729,738

837.540,696

$1,67.6,688,260 $1,527,421,896
$2,114.575,797

$2,114,575,797 $ 1,945,508,703

Taxes

»•', 4.657,735

$

INTEREST

Capital surplus

$ 1,137,478,374

34,190,059 $

,

r
j 8,824,056

STOCKHOLDERS' EQUITY:

and
.

163,259,102

'•

$

liabilities

current

RESERVES

EQUIPMENT—AT COST:

Less—Depreciation,

182,490,674 $

Treasury

Total

"

LONG-TERM

Gross

$

taxes

held for payment

<si

129,627,399

S.

.

.

income

1954

pay¬

obligations
thereof: 1955—
$70,000,000; 1954—$50,000,000)
.
(less

:

■

$

1955

Notes, contracts, and accounts

246,382,362

270,988,161

.

•

CURRENT LIABILITIES:

1954

193,672,844
Inventories

Day

•

•

.

.

.

•

•

produced

226,140,761

$1,945,508,703

zr

"

n

The Commercial and Financial Chronicle...

]

(1310)

far

So

Pay TV

Boon to Television

a

Director

adult

Zenith

grateful for

are

and

tion TV will be good for the pub-

lie,

good

the

for

broad¬

that

try,
ad

good

vertising

and

mercna..-

dising,

home

good
I

shall

gin

be¬

with

from

Subscription
TV

for

is

sim-ply

method

a

Leitzell

Ted

of

in

we

sponsored

will

decoders,

Pay television, when in operation, would black out the channels

don't know what the

dedicated to the

Primarily,

ed-

it will provide the financial* sin-

ucation by

home TV at a fraction
the cost of exhibition in thea-

ews

ol

educational TV stations for which

to operate the

.

lower

prices

with greater
attending the

and

convenience

than

theatre.

tions

provide

to

truly free programming.
..

of

and

;

to

coins

expensive enterprises in America,

effect

did.
of

these

economies

^frther t^n

step

Movies

eliminated

shipping

from

able to

were

the

and

casts

soot

one

bv

the movies
cost

scenery

another

and

the finest

act-

to

send

ing talent around the country for
the

nrice

fflm.

of

exnressin«

ala? add "d

They

tainment

a

of

can

the

on

stage.

But
4U

the
and
ana

movies

did

not

estate, of ushers

attendants and all of the dvduenaanis, ana ail ci me ex

that

penses

movie

into
;Nor

go

theatres

operating
tliev

did

eliminate the cost of transporting
the
audience
tn
th*
the
audience
to and
and
from
the
theatre
cident

or

to

the other expenses in¬
theatre attendance.

d

,

.

mTT

JY

10#n

.

billion to operate

$

our primary

real

companies
our

a

.

tremendcms- waste in

our

networks,

vision

edu-

1S a tremendous- waste in our eaucational effort.. According to ed- would
ucationai

authorities

onlv

Pfr aS,19*

u

halt of the top

.

+

or

hwlrtv'

ma

:

and

Subscription

of

each

find

subscription

which
TV

IV

that

of those who begin
the

majority fail

a

_

Our opponents are already en-

as

able

freshmen

of

of

degree,

the

up

work

these

required

If

subscription

a new

competitor, just as the automobile,

Subscription TV, applied to education, can salvage for us an
number

enterprises.

TV is established, it will be

to finish.

airplane, and bus became com¬
petitors of the railroad. If it is
strangled before birth- our op¬
ponents will be spared the com¬
petitive effort required to main¬
tain their profits.

fine

There

is

no

question about the

motives of the theatre

for

owners.

In

to 100% of the work literature circulated among them

TV

selves they say, "With Fee-T\
every home set becomes your
hox office competition, ' and "If
FCC ck's Toll, we're beat."

in some fields» could be:',taught
by television.
Experiments at
Pennsylvania State College, at
Fort Benning, and elsewhere have

demonstrated that students can
However, the theatres have not
as well or better,if taught told their motives to the public,
b-V television as by traditional Instead, they have organized a

have™purred "f/00"1 methods-

TV

will

be

Subscription

-

TV > can

•

•.

faces m^

make

Committee on Toll

^-Se^Tvfand ^Organ^^ons

en-

ku^vMue° to^famihenf todav sch°o1 graduates who
value
to
tamilies
of high
deorived
ooIIp^p

are l°r'Jre* TV."becauselast name is
This the theatres
highly ironic,
have bitterly opposed any form
ije.dom or never attend a Broadto attend college lon« enough to of TV,.even to the threat of boyway opening, and who because of
get a degree
What -ft will Hn W rotting any producer that sold his
particular

low and medium

cost

must

limit

of

income, who

the

number

am

of

-Sdr They W!l1 be able t0 e"J"y
'end* Thev°wm be^He |hey ?t"
•An address
by Mr. Leitzell be(,re
Li? Poor Richard Club, Philadelphia, Pa.




c

e

^ons because

®

ove

Pdnpa

canont

thf college courses

home, and
the

they

course

.

afford

to

h

s

save him-for much of
at

least—the time and

expense of taking himself to the
College.

Product

to

TV.

John

Crosby

summed up the situation perfectly

when he ..^ro4®' "The theatro
owner s solicitude for your right
Continued 071 page 45

see

pay

a

first

would

for it in some form or

pay

That is the key to the park.
then he would have to pay

fee

a

for

watched.

every

That's

for every

There

like

program
he
the charge

activity in the park.

pay tele¬
putting pay
television on only some stations—
just like the proposal to charge
for only some of the parks. They

vision have talked

mic

reduc¬

television is

Pay
the
in

than

more

the

a

also

not watch,
television, if
it were approved and could be
made to work, mean to the people

sound.

Set

these,

could

,

re-

they

jn program charges from the
family. That may not

an

'

u

„

-

He

has

-

'

*
,

'

to

'
.

.

what

seems

to

u*

him

a

business proposition:

sound

he

much

in

this

admissions

its

a

whole

:

year.

What would

Yor1?.

a

the

all

time

but only

Saturdays, Sundays and holidays between May and October.
That, as he points out, is less than

on

i^^^^^^strang^
i ey
^ay they would not interfere wit

the programs that the set owners
are now getting free, but that they
wouid supply something new, different

better<

and

the

these

or

gates.

the park

lease keys to open

After

people

have

paid for their keys and gotten into
the

park, they will be charged
separately for whatever they want
to enjoy—so much for sitting on
a bench, so much for riding a bicycle, so much for using the children's

playground, and

If you

so on.

let him charge, he

<

the
smoother;

will
I

^ a

pi7

television

d outbld ,^re,e., television for

programs that the public most
enJ°ysThe most recent proposals of
one of the promoters insures this
power.
This group proposes to
Uimit pay television in the beginning to stations carrying less
than 7^ hours of commercial'network programs per week. After
two years, they think every sta-

Uon should be allowed to broad-

prom-

cast Pay television,
And what does this modest proposal confine them to? Well, this
initial limitation includes, among
others, only such cities as New
York, Los Angeles, Chicago and

bicycle paths will
the benches will

be better.

; ?
uY

clear, and the promot-

ers. jn0wA, I'

be
be
more brightly painted; there will
be a greater variety of animals in
the zoo; and, indeed, everything
.

^

tnere ** no

States.

ises that the lawns will be better

kept;

_

a

For it is

entrances to

and will sell

.

they

are

about what they would deprive
citizens of this city and of
other city in tne United

it will work is that he
will put gates with specigl locks
all

who

I suspect not even

Pf
f?u

The way

on

''

citizen of New

ry vague on tms suDjeci.

of the time.

15%

to

m"
°f this tax. The pay tel

in^ms^ves..

him; he doesn't want
the parks, only a few

And he wouldn't want to

them

for
movies,

pays

getAnh.re(tur? l°hi

understand

close

the average

country

trying to fool?

of them.

a

to them

money

than

more

wantz. to charge admission to
the public' parks. Now don't misto close all

$100

get

theatres and sporting events over
•

and made the following

«iwVstihn«

to

expect

like

family

give you the full flavor of
enormity of this proposal, I'd
like to.pose this proposition to
came

beand.

year

SOund

To

someone

pro-

average

signals, intelligibly ;_but it's

Suppose

television

pay

tba^

the

this group

the

Well,

moters say they would charge
tween 25c and $2 a program

°nly after decoders had been attached to their sets and only after

you.

or

And what would they get?

a

owners

programs

of New York? What would it cost?

plan whereby
a
station now broadcasting programs free to everyone would be
permitted to scramble its picture
and

obscures
of the pay telemake people

to

But what would pay

they could use them as
they wanted without any
further charge for viewing.
These damages to the public are
inherent in the very nature of pay
television. Described most simply,

ceive.

televiof the

course,

purpose

proposal:

for

pay

as

is

pay

_

All of this, of
vision

tation that

television

■

the real

area

paid over $1 billion for
their television sets in the expec-

pay

allowing

Real Purpose

v

who have

much

of

y

families

television

talk

of

sion to operate only 15%
time in the beginning,

betrayal of

million

4

York

New

other similarities. Re¬

are

cently the promoters of

au¬

along

n o

o

very
.

,

or

And

the

television

a

sttud;=nts now go to college and trenched in tremendously profit-

opposition to subscription TV.
.

a
a

L1learn

?nrtSTT*

reasras

we

service,

511v><,oHntinn

acorn; *

University of Illinois, who pio-

^
^e >?a^lda.y
hrip withnnt
^
?;!i?f plnfdl' itrUCk^

ncmie

this

potent competitor,

about

Jl

of ^gb school

brains. Dean C. C. Caveny of the

,

ivv,

1DviC? ei-

nf

'•nmAhnriw

<

.

50%

wnHn? yit is

for

demand

•

nr

inter¬
We de-

are

because

system

to

other.

it trom general taxations.-Then translated* into a profitable busikids, some of them, go off to ness. Now, I come to the differ¬ paying a charge for the pay television program.
?olleSe with expenses aggregat- ence between our position and
*ng about,$3 bilhqn a year, to the position of those who oppose
Analogous Situation

■

iiirnp

that

and secondary, .schools, the bulk .demand that would ultimately be

.

nronrfir?
frnm

have

would be endorsed by the

say

veloped

nJ ruuftmr 1 «£ exhibi- neered the Navy's wartime revprtiv inl thiP10gcams dl~ search in the field of visual eduVs+as
cation, says that in his. opinion
nomebody invented an electronic

ffrn

I

^ch year +we spe"d some *8 to believed that there would be

enormous

Phonevision Merits
•*t

what

moneys subscription TV.
contributions that go to opTV-Movie Opposition
erate the colleges.
;
These figures do not reveal one - Opposition, to subscription TV
appalling aspect of our educa- bas come from just two sources:
eliminate;tional picture—the fact that there movie theatre owners and tele*

movies dicj not eliminate
of real

cost

Zenith,

that

believe

I

with

«5ter-""thing (?f 'he tax

to

by
showing locations
happenings that could notpossibly be presented realistically
and

start

ested in subscription TV.
_

Education is one of the most

one

shall

I

other

Subscription TV will be able to

r

So,

mirT

,

so,

it would

lines,

f°r a few cents a person,

Educational TV

*

-

hours

many

wanted
program

have to buy a decoder for $50 or

first

divide

dience"

it

These will be shown at

tainment.

who

television

be in g

time

example, if pay television
through, a citizen of New

York

popu¬

the

pay

as

It certainly has many

.

or

comes,

por

broad cast free.
For

W

went

programs

now

sensible

as

-

points of similarity,

suc¬

the

lar

the fine events of subscription TV

hundreds of

liny majority

a

about

television?

cessful, would
siphon, f r o m
free television,
all

the FCC has provided channels,
Recently, Mr. Richard Salant of
but which will probably never be CBS suggested that we ignore
home
able to operate from the tax the question of motivation in apmotion pictures, Broadway open- funds and contributions available, praising the line-ups supporting
ing nights, grand opera, sports The sale of a very few hours of and opposing subscription TV. I
that are now blacked out on TV, pav educational programs a day wish that this were possible, but
and other box office type enter- will enable these educational stait is not.
it

if

and,

class
room,
will permit
viewing of theatre-quality

stadium,

tre,

When

it just

of the entire

Louis
Hausman
«the ^mPle" reason . that . nobody ing to secondknows. However, we are confident class citizens
'that it Will* come to a mere frac-' those who cannot afford to pay
•tion of the. cost of attending the . for their television programs, ereevents in person, and that an en- ating a brand new caste system
in television viewing.
'Ure family'will be able to enjoy

greater abundance in

even

use

cos^ us.
budd: public except to those willing and
years ago we introduced able to pay;

or tw<) a uiontn.
I can't at this time say precisely

fire's-

be

(4) would not

marked increased
Public interest is advanced as the test
of public policy.

promoters' profils.

„nomiqal. sujn, probably a dollar:

at

programs

and (5)

programs,

admis¬

per annum

would be determining and seeing programs at

.

abund-

an

the field of education.

office entertainment and

bcx

of

cost

than its present

pay more money

provide better educational

what program charges will be, for

enjoying

entertainment

ent

delivering

the

it could:

warns

movies, theatres and sporting events;

opponents have

.

economy and convenience
subscription TV will provide

that

our

.a J?
p9, a
?r
f19-.95- That is the way it is in our
business. But, jno matter what the
production cost, Phonevision de•coders will not be* sold to" the
•pUi)1 J Instead' they
be In"
sta.lled or\ the subscribeer* re"
'celver, and rented to him for a

The

subject.

my

of

family to

broad out¬

a

J"®
i)0rionn rf"10' and re~
*aded$200, plus tubes and
batteries. A few years later we

other times.

of

you

who would pay for them.

decode,fs

peanuts and !popAnd this will not prevent

ance

a

definition

of

questioned
and

than

more

programs.

sions to

given

Various

them

country.

have

subscription TV and

(1) outbid and take away programs from free TV; (2) delin¬
eate audience along economic-caste-lines; (3) compel average

Phonevision, works.

buy

little if any

for

Mr. Hausman opposes

hours

more

subscription TV can
present to the public. I shall now
show you how the Zenith system,

corn.

the

many

^

opera¬

stations,,

line of what

the cost of their

for

TV

Phonevision Described

Broadway opener in their .own

or

and
therefore

out

non-subscription

I

theatfe
tickets, and have a snack a<ftevward, a young married couple
will be able to enjoy a fine rrfovle

for

pour

educational

First,

parking,

By LOUIS HAUSMAN*

Vice-President, Columbia Broadcasting Sjstem, Inc.

So much for education.

abundance of the world's most
costly entertainment, and do so
without increasing their budget
for
entertainment..
Instead
of
murdering a $5 or $10 bill to
hire baby sitters, pay transportaand

of

of

an

tion

casting indus¬

room

enable

will

courses

tion

merchandising, according to Mr. Leitzell.
at

class

to

day oJ subscription programs in

a

affiliated with major
networks lost money, and that subscription TV can make sta¬
tions really independent and profitable without harming spon¬
sored TV programs. Buttressing Phonevision merits, Mr. Leitzell cites: (1) unfulfilled 1941 TV network charges against
FCC regulation are now being revived and used against feeTV; (2) growing theatre use of TV programs; (3) favorable
results of Chicago test survey and survey of advertising people;
and (4) size of classical music record market. Stations need
only devote a small portion of their broadcasting day to sub¬
scription TV in order to benefit the lower income groups, aid
education, assist broadcasting industry; advertising and

opportunity to appear here
tell why we believe subscrip-

tre¬

a

,

economics to say that a few hours

Zenith official charges most stations not

We

give

work at all levels. And it is sound

Zenith Radio Corporation

the

Pay Television's Faults
And 111 Consequences

or

can

assist

mendous

Relations

Public

of

is

It

refer¬

no

secondary
perfectly obvious

television

that

made

primary

schools.

LEITZELL*

TED

By

have

I

to

ence

Thursday, March 15, 1956

Washington, which represent 27%
°f all U. S. television homes!

^

don't

expect you have much
enthusiasm for this idea but isn't

say

.

in

—

New York.

they would start

And the first thing

,

♦Statement by Mr. Hausman before the
Rules Committee of the New York City

Council, Feb. 9,

i95s.

they
.

WOUld

have

tO

do

is find
AR

Continued on page 40

Volume 183

.

the

firm's

Beverjv

former

office at 137 El Camino Drive and

Investing in Electronics

now

a

Harris, Upham, g e h e r a 1

representatives includes Mrs. Nina

Duncan,

of the

one

few

representatives

partner, is in over-all charge of the

registered

Beverly Hilton office with James

-Problems and Pit-Falls
production

of Macdonald serving as office man¬
Hills ager; The staff of 13 registered

Frank Leslie Patty, manager

Continued from page 16

Los Angeles area.

.

women

in the

With Columbia Securities

With Harris,-

COLO.

DENVER,
Oreck is

curities

Incorporated,

Company,

Boring, Jr.
of
Harris,

creates a constant challenge
for the electronics manufacturer—
is

—

i

>

expensive one to meet.
Most of the larger electronic com¬
an

panies keep

abreast

ahead

or

of

changes but many of the indus¬
try's
smaller
concerns
cannot
afford

the

of

power

The

cost.

the

former

earning

is

reduced

by their heavy research expendi¬
tures; the earning potential of the

Wonderful

latter is limited by their inability
to make these same expenditures.

Naturally,

in

electronic

the

time,

firms

survive

in

in West Central Ohio

fast-changing

can smaller
industry as

an

and

developing

reap,

the harvest of their huge research

outlays. But how long

are

larger

begin to

concerns

things

demanding

as

this? '"
(

It

Auto

is

Pattern?

opinion that the elec¬
industry
will .take the

our

tronics

direction followed

same

in

recent

by the automotive industry.'
line with this, we believe "a

years

In

relatively few
than

(perhaps no more
large, diversified

dozen)

a

electronic manufacturers will'

doing the bulk of

eventually- be
thO ' business.

of

The:: nucleus

several of these giant enterprises
will probably come from'the air¬
craft

office

or

tries.

Also,

electronic

machinery

indus¬

of major
can
be' ex¬

number

a

mergers

pected during the next decade, we
believe. The many

operating and

financial pressures ahead for this

industry will demand more man¬
agement talent and money than is
owned by most smaller companies.
I

trust

that

discussion

this

of

of the problems and

pit-falls
faced by the indiscriminate buyer
some

of

electronics

"

will

issues

r

not

lessen the interest of investors in

this

The

industry.

careful

arid

great,

even

than

field

in

of

-rewards

have

selection

been

greater," in

as

this

industrial

most

se¬

curity groups. Outstanding invest¬
ment

will

results

continue

to

be

realized by those electronic share¬
holders
who
take
the
time
to

learn
of

the

facts

and

keep abreast

this rapidly
constantly-changing in¬

developments

growing,

in

dustry.

•

;

James W. Hoogs Willi
'

•

THE

V

Gamp & Co,, PortM

-

(Special to The Financial Chronicle)

'

PORTLAND, Ore. —James W.
Hoogs

has

associated

become

with

when

Central Ohio comes

industries in cities and

live

on

live

well. And

George U. Harris,

ner

a

senior part¬

of Harris,

tionwide

Upham & Co., na¬
investment
brokerage

-

firm with 35 offices coast to coast

members

and

of

the

New

York

Stock Exchange, introduced a new
look in brokerage

offices when he
cut
the tape March 13 opening
Harris, Upham facilities in the
Beverly Hilton Hotel at 9860 Wilshire
Boulevard,. Beverly Hills,
a

broad departure

and Light

port. It's a picture

of

a

in healthily diversi¬

fect

new

22,739,000
570,000

$216,497,000

$169,947,000

$166,397,000

16,278,000

15,161,000
34,939,000

Capitalization

towns—and who

farms. These fortunate

16.000

liabilities

Current

people

Reserves

36,346,000

...«»..

naturally, their individual use

$222,571,000

.

of

our

services is above the national average.

This report
ton Power

gives you a picture of

and Light

our

customers

company

The Day¬

Company's sound growth,

matching that of the area. As the

approached

one

aspect of our

Gross income.

densed

into the table at

you a copy

56,392,000*

/

has occurred in every
PREFERRED DIVIDENDS

Earnings

right. May

we

send

stock.

on common

Number of

common

$

........

per

9,580,000

$

8,439,000
949,000

$

$

7,490,000

8,631,000

shares out¬

2,619,256

with

room,

Includes taxes of

:...

$3.30*

ef¬

complete

full

view

Teleregister board. The 3,200-

square

tioned

of the latest micro-sec¬

foot

office

is

throughout and

air

condi¬

connected

by direct wire to Harris, Upham's
New

York

headquarters

office.

The Beverly Hilton branch incor¬

porates all research and communi¬
cation

facilities

of

Harris,

Up¬

ham's nationwide organization.




LIGHT COMPANY

THE DAYTON POWER AND
25 North Main Street

•

$2.88

$14,000,000—equivalent to $5.43 per share of common stock

customer facilities on all levels in

ond

2,600,059

common'share

outstanding

of the full report? Just write—

$ 10,632,000
2,193,000

11,935,000

949,000

...

standing at December 31.......
Earnings

1954

$ 61,547,000
50,915,000

2,355,000

.....$

INCOME DEDUCTIONS

has been greatly con¬

$216,497,000

1955

EXPENSES....;

operations, reflected in revenues,

..

OPERATIONS

".....$ 68,327,000

the

—

earnings, wages, and dividends.
Our annual report

OF

f
REVENUE

number of

million

passed the $200,000,000 mark in prop¬

erty and plant. Expansion

RESULTS

Harris, Upham office

three-tier balcony

a

board

576,000

.................

LIABILITIES

from accustomed brokerage prem¬

ises, the

$193,188,000

20,257,000

plant

million people who enjoy

good incomes—who work

1954

*

,..$201,738,000

$222,571,000

Other assets

*

features

1955

'

Property ond

Calif.

Representing

BALANCE SHEET

Current assets

fied

;

ASSETS

Company's 1955 annual re¬

Inc.

New Bev, Hills Office

sharply into focus

through the "lens" of The Dayton

seen

Power

Harris, Upham Opens

AND LIGHT COMPANY

POWER

.

December 31

"est
w

Camp & Co., U. S. National
Building.
Mr. Hoogs was
previously in the trading depart¬
ment
of
Zilka, Smither & Co.,
Bank

DAYTON

r\

Dayton 1, Ohio

.

Dwight W,
the staff
Co., 133

has joined
Upham &

South La Salle Street.

Equitable Building.

etc.,
and

111.

CHICAGO,

H.

Jack

—

with Columbia Se¬

now

Upham

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

materials,

methods,

23

(1311)

Financial Chronicle

Number 5516 ...The Commercial and

24

which

Closed TV System's Applications
And Effect

will

operate at extremely

low visible

checked brightness of the picture on the

all

in

times that of the

Watchman
Another

is the use
watchman,

application

television pick-up tube and as¬
sociated circuits, together with a

whereby

light hood, incorporating

subject being viewed. The amount

and

fluorescent

a

a

mirror
to

screen

con¬

Lumicon

the

of

a

as

large tracts of land or
or other buildings may

under constant surveil¬
detection of almost unlimited usage in medicine, astronomy,
the
incident
vert
x-rays
into lance, using several detectors con¬
visible light. The x-ray tube has nected to a central observation
industry and guarding of property.
its
beam
directed
toward
the station. Under these conditions it
The
Continuing his explanation, Mr. fluorescent screen and any kind of would not be necessary to have
advantages and applica¬
tions of the new light amplifier, Sturm
made
known
that, "the an object may be interposed be¬ the area well lighted. The Lumi¬
the Lumicon, and its effect upon Lumicon consists of a closed tele¬ tween
the
x-ray
tube and the con has been demonstrated re¬
the long-range development of the vision link system, that is, a tele¬ detector unit in order to view the
peatedly under conditions of low
television in¬

vision

dustry

internal

broadcasting stations,

in television

is

chartered

used

medical

camera

detector

or

coupled directly to

b y

Ralph E.
Sturm, Re¬
Direc¬

tube

o

f.' the

The

monitor

Bendix

Avia¬

feet

monitor or
which includes a
television display

viewing unit,
kinescope
or

search

as

or; more

tion

F

r

i

In

a

with either

brief

and suggested

fSf:

a

mm

of the
Ralph

Lumicon, Mr.
Sturm

stated:

a

still

image

The repetition
same

wide

as

rate however is the
30

in television, that is,

separate pictures per second. This
allows adequate visualization of

variety of applications—in medi¬
cine as an aid to diagnosis and for
use in therapy — in astronomy —
and in industry. In the industrial
field, using x-ray, the Lumicon
Can be used for nondestructive in¬

.

who also

x-rays

-

on

which

would

The

electronics

for

outlook

future
to

is

bright

a

Philip

one,

into

converted

light

have been suggested."

special

Industrial

circuits

provide

a

unit

of
the Lumicon, its use in non-de¬
structive x-ray testing is one of
the most interesting. It is possible
types of ma¬
terial for defects in structure. Any
reasonable

size

or

thickness

may

be

examined, since if large struc¬
tures are required which neces¬
sitate
high
energy
x-rays
the

.V;.

mere
^

are

researcher

to

business manager," Mr.
cluded.

and

Fogg con¬

V

A

Milion E, Reiner With

ef¬

Blyfh

Coast

on

business,

the

elec¬

tronics

indus¬

should

try

continue

f;

o

its

growth

rapid

r e c e n

creasing
much
in

t

in¬

years,

applications

all

almost

view

to

failures

fects in Amer¬

and

than
;

accorded

is

spite of

ican

Inspection

many

o-

r

leveling

Philip S. Fogg

the

"Of

t

c,

e

"In

.

.

Fogg

likely, to
continue within this group until
such time that equal partnership

dynamics
Corporation.'

the

in various scientific investigations

1

E

moving objects. The detector unit fluorescent screen, therefore the
consists of a standard television television pick-up tube sees light
pick-up tube together with an ap¬ only. For this reason the Lumicon
propriate optical lens. The fastest is really a light intensifier, and
lens obtainable is used in order can be used with almost any form
to increase light gathering power of- light or radiation which can
to a maximum. These fast lenses ultimately be converted into light.
.■<
i.
together with newly developed

spection of items such as castings,
or almost any size and shape of
tnaterial conceivable. Many , uses

other, areas

upon more

business

Consolidated

ap-.

at

of

President

Fogg,

S.

the light level be extremely low.
"It should be noted that x-rays
are

in

into the
according

1956 and for many years

picture if

in the original

parent

be

not

as*

technological achievement.

the viewing unit shows

on

depending

smaller companies are seen

to

the television pick¬

well

a

so

on

detail

?'

rise in electronic sales from $10.8 billion
$22 billion in 1965. The competitive problems of

predicts

in 1956 to

The

which reproduces the
the monitor at a much
higher light level. This brighter

picture

to

enough for movie work."

industry, is expected to grow 25% by Mr.

in electronics

tube

up

body, an increase of brightness of
the order of 40,000 times is used in
order
to record
the image fast

Instrumentation and industrial control, as

that the lens in
the Lumicon system looks at the
fluorescent screen and produces
light

image

is

a

television

screen.

the

converts

screen

an

standard

type of radiation which may
be converted into visible light. It

having

be actuated by

human

in the

happening

events

/

;••

an

on

fluorescent

a

visible

the

when
using the instrument in medical
diagnosis
to
make movies of

this is the
patient takes,
x-rays
to pass

when x-rays
object, some of
them are absorbed, while others
are allowed to go through the ob¬
ject producing a shadow picture
incident

on

of

desire

the

as

the

"As is well known,

are

get better resolution, the Lumi¬
con
uses
1,029 lines per picture.

primarily a light
be used with

may

instrument

camera

in

fact

well

as

operator. In some instances

the

through the body.

practice which utilizes 525 lines
for each separate picture, in order

any

an

can

movie

desired time.

"Unlike

1

or

switch to take pictures at

foot

any

E. Sturm

■

"the Lumicon is

amplifier, and

50

from the detector
ordinary movie or
may be used to photo¬

attached which

description
uses

located

be

graph the monitor if desired. A
separate
kinescope is provided

Division.
;

may

an

still camera

e z

Instrument

receivers.

home

in

used

and

unit,

Corpora¬

tion's

as

In

kept

of

application

position that
allowing the

a

'

tor

structure.

be

•

amplification depends of course
upon the illumination of the scene,

warehouses

a

approximately 10,000
brightness of the

monitor unit

,/

baggage.
"The medical unit also includes

Upon TV

film

developed

light, amplifying the

level visible

vised to refrain from packing un¬

light levels.

Medical Usage

Bendix Research Director briefly describes closed TV system
which uses 1029 lines per picture instead of 525 and permits

-

_

Financial Chronicle... Thursday, March 15, 1956

The Commercial and

(1312)

as

25%

as

many areas

particularly in the fields of
industrial

and

instrumentation

control," Mr. Fogg said.

Confirming

industry

year-end

forecasts, Mr. Fogg predicted to¬
tal national electronics
sales of

billion
in
1956
and
epochal $22 billion in 1965.
$10.8

the

attributed

He

Milton

an

and

progress

E. Reiner

(Special to The Financial Chronicle)

Calif.—Mil¬

SAN FRANCISCO,

Reiner has become associ¬

E.

ton

may be shielded from the
ated with Blyth & Co., Inc., Russ
and be fully protected from promise of electronics to enor¬
Building.
Mr. Reiner was for¬
mous strides made in the fields of
X-ray photographic
merly manager of the trading de¬
techniques are widely* used in in-, basic science during the past 15
partment for the Wells Fargo
dustry, but generally Only one to years. "The unlocking of nature's Bank.
three views are taken. Such photo¬ secrets in the physics and chemis¬

operator
x-ray

its

effects.

RELIABLE

OF

ELECTRICAL

^

try
fits

be shown that certain types

can

of

AND

cracks

in

orientated

castings

within

15

be
degrees of
must

launched

has

laboratory

graphs record only those defects
in the direction of the x-ray beam.
It

MANUFACTURERS

a

chain reaction of increasing bene¬

mankind," Mr. Fogg said.
new
development forms

to

the

for

basis

a

others

of

host

y

film

and

capacitors for

use

in the electronic,

manufactures

Time

•

film resistors, wirewound

only is involved, eliminating ad¬
ditional equipment and effort, in¬
cluding the cataloging of parts,

precision resistors, and power-type wirewound:
resistors. It is the

only producer of ceramic-

identifying
them
properly
with their respective x-ray photo¬

has wide

military applications. It is half owner

of the Ferroxcube

then
that
be accom¬
plished on critical parts without
increasing the cost of inspection
to a prohibitive degree.
graphs.
This
means
100%
inspection can

Corporation of America, a

leading producer of magnetic ceramic

mate-^

jrials for television and military electronics.
Sprague maintains
tnost

one

"Of

complete Research and Development

laboratories in the electronic components
Some 325
ment of

new

are

aloft

components, dielectric materials,,

by

ADAMS

^MASSACHUSETTS

could

cause

for
fire

explo¬
A conveyor belt traveling
Lumicon located in a small

a

even

an

immediately adjacent to an
airlines ticket office, would per¬

,




which

examined

room

mit

SPRflGUE ELECTRIC COIIIPIHIY

be

perhaps

or

sion.

"

many

might

baggage

field.

employed in the develop¬

find related apparatus,/

NORTH

course,

materials

people

other

types
of material can be inspected with
the Lumicon. For example aircraft

of the largest and

observer

an

to

examine

all

baggage by means of x-ray as it
slowly by. The Lumicon,
with x-ray, would reveal all ob¬
jects in the bag without harming
,

passed

anything
photographic
would

of

except

undeveloped

film.

course

have

Passengers
to

be

ad¬

is

now

the

immense eco¬
impact of this

social

and

J

be

to

knowledge, beginning

new

on

Middle East

— A
special
Investment Ana¬
lysts Society of Chicago will be
held on Wednesday, March 21 at
3:30 p.m. in the Adams Room of

111.

CHICAGO,

of the

meeting

Stephen
the

in

Longrigg

the

dress

Brigadier

Hotel.

Midland

the

meeting

Middle

on

East

Reference to Oil."

will

who

ad¬

"Problems

with

Special

The Brigadier

specialist in the Middle East
and for over 20 years was associ¬
spark
continued
electronics ated with the
Iraq
Petroleum
growth during the next 15 years Company.
in spite of general business fluc¬
The Society's regular luncheon
tuations
that
may
occur,"
he meeting will be held March 22 at
"These

are

is

factors

which

12:15 p.m.

Labeling
programs

as

noted

expenditures
vate

sources

million

expanding
research
a key factor in the

electronics

current

Fogg

a

will

added.

and

high temperature magnet wire, which

never-

vistas of practical ap¬

felt.

to
develop
photographic
plates is not required when using
the Lumicon. Cost is thus greatly
reduced, since the operator's time

forming networks, radio interference suppres¬

coated

nomic

only

and

geometric

new

Further¬
more, the image can be viewed
conveniently
and
immediately.

printed circuits, radar pulse-

sion filters, carbon

thus show cracks that might

radiate in any direction.

elec-|

trical, and automotive industries. Spragiie also

plication,
particularly in the
growing fields of automation and
industrial process control — and

inspecting the casting on a
slowly rotating table so that it
may be observed from all angles,

electrolytic, mica, ceramic, and plastic

paper,

entire

on

t

Sprague manufactures a diversified line of

ending ratio. New laboratory dis¬
coveries continually are opening

of

f

a
photograph. The Lumicon
gives the operator the advantage

COMPONENTS

an

almost

Hear

in

the direction of the x-ray to show

ELECTRONIC

Chicago Analysts to

"Each

in

billion in

Mr.

boom,

total

research

public

increased

1930

bert

Carr,

William Her¬

Vice-President

and

Treasurer of the California Pack¬

and pri¬

that
by

in the Adams Room at

the Midland Hotel/

to

ing Company, will be speaker.

from $166

more

With Smith, Hague

than $3

1952.

(Special to The Financial Chronicle)

DETROIT, Mich.—Hal H. Smith
III

has joined the staff of Smith,
successful technological achieve¬ Hague, Noble & Co., Penobscot
Building, members of the New
ment alone is no longer enough
York and Detroit Stock Exchanges.
He

to

cautioned,

assure

business

however,

success

,

that

in

the

fast-paced and highly competitive

Gardner With Allyn

electronics field.

(Special to The Financial Chronicle)

"The

smaller

companies which

characterize the major
the

electronics

portion of

industry

are

new

capital

and

meeting

management arid marketing prob¬
lems.

ConsoftffSffons,

mergers,

and

CITY, Mo.-r Thomas
associated

Company,
Incorporated, 1016 Baltimore Ave¬
nue.
Mr. Gardner was formerly

fac¬ with A.

ing increasing difficulties in rais¬

ing

KANSAS

B.' Gardner has become

C.

prior

manager

and

Blosser & McDowell
thereto was division
for Slayton & Co., Inc.

with Straus,
and

Allyn

"

Volume 183

Number 5516 ...The Commercial and Financial Chronicle

(1313)

ly low drain on the car battery^'fact that the element of electric
By 1957, we will be in strong
has been removed, he said.
production of transistor car ra-

dios."/. /J,
Standard

portable

Raytheon Vice-President believes transistorized radijs

bination

will

provide

eclipse standard plug-in radio within five years. The devel¬
opment of and cost reductions in transistors, accompanied by

battery improvements,

expected to mark

are

and

auto

full swing in the radio

"This year transistors

indus¬

"Most

gigantic

a

battle

tronic

midget
industry*

to

of

elec¬

an

take

F.

Argento, Vice-President of the
.Raytheon
Manufacturing
Company and General Manager of its
here

in

The

and

Chicago."

.Mr.

replacement
worn

operations

the

work

of

radio, without

burned

ouj. tubes, and

'

Portables

out

or

the extreme-

demand

now

hours
per

will

of

batthe

be

Mo. —William

Ernst has become

connected

M.

with

Dempsey-Tegeler & Co., 10th and
f
L
T

,

,

..

xr

,

locust, members of the New York
and Midwest Stock Exchanges,

transistorized

in

number

Jr.

(Special to The Financial Chronicle)

rability, the lower operating cost,

West Seventh Street, members

the lack of

the Los Angeles

an

electric cord which

permits the radio to be arranged

Mr.

in

Company,

room

settings,

and

the

Rosen

of

Stock Exchange.

LOUIS,

O'Connell
&

is

Gardner,

members

of

Mo.

now

400
the

.

ized radios will completely eclipse
the standard plug-in type in use

Argento

said.

He

tubes

power

well

as

dio

products, has

."Raytheon is
companies

.

in

of the largest
world

devoted

exclusively to electronics, and has

-made

and

sold

"According
the

to

-

transistors

more

than all companies
said. v.■•••■

•

the market.

on

one

the

ra¬

complete line.

a

of transistor-radios

.

•

pic¬

as

ture tubes and television and
•

.

out
that .Raytheon,
a
manufacturer of receiving

prime
-and

Mr.

combined," he

estimates

from

industry, about 15,000,000

ra¬

dios of standard types were made
in
1955. >i The estimates include*

7,200,060

automobile

home

300,000

radios;

3

radios;

2,100,009
clock-radios, and 1,800,000 port¬
able
battery-operated sets," he
said.

Transistor-radios
est

thing,

ducers

and

introduced

radio

last

pointed

pocket-sized
small

of

sets,

pro¬

transistor-

Mr.

Most

new¬

major

a

year,

out.

the

are

most

Argento
these

are

onerating

on

batteries.

Raytheon is the
only major producer that has a
complete line of the radios, rang¬

ing from

home set which plays

a

for two years on a
to

single battery,
pocket-sized set which plays

a

for four months

"There

on

be

can

transistor-radios

tiny battery.

a

doubt

no

that

will

rapidly re¬
With transis¬

tors

the industry.
providing long-life

very

low rates of operation, there

verse

batteryoperated radios of extremely light
weight and easy portability, at
is

absolutely

why tran¬
won't
overtake /the
plug-in variety within five years,"
no reason

sistor-radios

:

he said.
He

••

-

pointed out that since tran¬

sistors

only

use

trickle of

a

cur¬

they will operate a -radio
for extremely long periods.
The
rent,

main

for

reasons

the

strides transistorized

tremendous

portable

dios will make in the

ra¬

dios

a

from

year ago

(2)

Mass

of
ra¬

has dropped 60%,
of

tran¬

sistors is making more of the tiny

tube-replacers

Income

means

availablefor

the

industry.
(3). New,

Net

"tools"

can

costing

small

about

battery

$1.40,

transistor-radio for
150 hours normal

In

the

near

future

will

more

or

today,
run

a

than 100

playing time.

Profit after

Depreciation but

before Federal Taxes

remove

red figures

...

make

on

come

Properly used Royal McBee

loss before it's serious

spot

...

Income $ 6,398,823"
on In¬

Net

3,213,324

1,277,317

$ 3,185,499

Profit after

$ 1,264,930

$1.96

$ .71

Depreciation and

Provision for Federal

a

Taxes

on

sliding profits

are

keeping solid black

(1,535,074 Shares)**
*

financial statement, investigate
the

advantages of business machines

and systems engineered for

profit...

Includes

non-recurring income of $378,644, resulting from an
litigation.
**Aft:r giving effect to the issuance of 191,884 additional shares of
Common stock in February, 1956, pursuant to a rights
offering
which expired February 15, 1956.
award

engineered by Royal McBee.

in

(Subject to year-end adjustments and audit)

batteries cost¬

ing less will provide

even

longer

playing time.
People

are

discovering the mul¬

tiple advantages of
dios,

Mr.

tor-radios
an

auto,

a

Argento
play

boat,

the home and

transistor-ra¬

said.

equally
an

Transis¬

well

airplane

office, he said.




or

in
in

$ 2,542,247

'

your

A

a

$39,387,250

Earned per Share—Common Stock

figures off

radios.

$46,862,425

Income

or

signed,

help

spot

1956

Products,

profit possibility in time to put sales effort behind it.

long life
•

of

Provision for Federal Taxes

methods which

So if costs

being developed, de¬
specifically for transistor

Sales

Services, etc.

Royal McBee designs and builds the machines and

compact,
feather¬
weight "pack" batteries with very
are

from

for making this improvement.

black figures blacker.

I

production

dnes have learned that the right tools of communication

are

The
cost
transistors used in

about $8 to $3.

Six Months Ended January 31st

provide the

rapidly.

Raytheon

SUMMARY OF RESULTS

everywhere recognize the need

men

future

near

these, he said:
(1)
Costs
of
transistors

are

dropping

Management

to hasten business communication. And successful

ROYAL

M9BEE

CORPORATION

Westchester Avenue, Port Chester, New York

W.

Reinholdt

Locust
New

Argento said.

.today,"
..pointed

Harry

Street,

York

Midwest Stock Exchanges.

"By the end Of 1960, transistor¬

.

—

with

•

tubes,

vacuum

Hampton

(Special to The Financial Chronicle)

ST.

of

formerly with J.

was

Mid-Continent

3520

Joins Reinholdt & Gardner

215

Logan & Co.

better

Corp.,

Calif.—Calvin

Rosen has become associated with
Fastnow

with

now

Avenue.

than the plug-in type. Housewives
like the easy portability, the du-

-

Fusz-

LOUIS, Mo.—Charles Maull

is

Securities

Adams

with

&

(Special to The Financial Chronicle)

Joins Adams-Fastncw
ANGELES,

Kirchhoefer

Mid-Continent Sees. Adds

r

ST.

LOS

H.

affiliated

Co., Inc., Boatmen's
Bank Building, members of the
Midwest Stock Exchange.
j

for

Home radios will eventually be
more

Schmelzle

LOUIS,

Irwin

'

midget" is the
miraculous mite that

a

subminiature

longer life of the

"electronic

-transistor,
does

radio

car

tubes, and the results will be excellent.
And the appeal will be

That is the prediction of Henry

television

come

transistorized

the

50

fairly high cost

set.

are

lightweight, long
operation portables.
; "

radio," he said.

transfstors and3

the

over

of

will

to

and

ST.

often

first to be almost completely converted to transistors, because of

trend in

the

to the automobile

try, and 1956 will mark the start
of

tery

20

that

LOUIS, Mo—-Arch A. Cat-

lett

(Special to The Financial Chronicle)

sets

use a com¬

batteries

only

use, at a

portable radios.

CHICAGO, 111.—A revolution is
in

new

a

of

(Special to The Financial Chronicle)

With Dempsey-Tegeler

>

battery

today, he pointed out,

Two With Fusz-Schmelzle
ST.

r>i\

:•

25

and

The Commercial and
26

For

,

mechanizing production lines,

slowness in

Radio-Television

their

compared to other fields, is decried by Mr. Sheridan in citing
gains accrued v.ith the introduction of automation in the shape
of the printed circuit. Seme results listed include: (1) in¬
creased production with marked lower costs; (2) quality
control overcoming human error and need for countless inspec-

a

:

time

a
printed circuit
This was the firbt
manufacturer hai pf-

any

..

,

.

,

poraang

Tate

in

the

electronic

in-

—

The

ject, we should
like

to

not the fellow

all

tells

•who

departure and it

be knows who

But

gets into trou¬
ble. It's the
fellow who
fells

Mar an Sheridan

lias

don't pretend

We

knows.

he

than

more

on

ence

minds

had
less

American

with count¬
example, there

reckoned
For

times.

View

Labor's

given

been

has

considerable attention by the na¬

zations,

might

I

The

months.

matter of

add,

reference

is not meant
n

organi¬
in recent

to

fact,

facetious.

be

want to

we

proximately

5,000

average

an

—

mistakes

for

the

for

com¬

f

leaders

far-sighted

a

neThborCo^ and

com¬

is

this

definition:

science

the

iparhinp^
jcacmneo

have

can

of

lh«
in-

at
at

it

time

So

To

about

get

even

the

subject, it
3neans
the use of automatically
controlled and extraordinarily intricate

machines to increase pro¬

duction,

lower costs, and

Early

in¬

our

highly advanced form

basic

is not onlv

costlv
^uy

tional

relieve

departure

from

tional

methods

radio.

Efforts of

the

at

conven¬

producing

research and

a

were

w er e

direction

the

of

printed circuits.

used

for

automation

tries.

in the petroleum,
automotive, communi¬
many
other indus¬
in

won't

and
We

jnechanizir.g
liecause

the

radio-television

of

the

products.

a

nature

very

We

cannot

of

put

a

machine and

completed TV

or

radio

re¬

aspect

automatic

or

•extension
dustries

Uields
"An
the

and

its

application

such

as

address

III.,

is

use

Armour

cane,

production
its

basis

the

some

to

commercial

15,

that

case

in¬

on

a

elec-

Mr.

Sheridan

Foundation,

1956.




before

Chi¬

the

establishment

first

printed* cir¬

into

might

point

automation

our

lines

I

sponsorship

as

was

with other automatic

disclose the lo-

(1)

the

pany's

tune

a

advertising

papular

com¬

campaign

television

rew

dealers

fcr

receivers

.on

and

that

in-

entirely without fanfare

without

publicity
field

because

evaluate

it

possible prejudice
people always hold

any

some

-

to

wanted

without

was

u?

receivers

to

i \

esiablished

1 (2) We have

rate

department

stores

used

huge

and

key

blow-ups

of 1

window

under

and

"Time"

As
was

an

RCA,

unusual

which

patents,

AUTOMATION,

magazine..put

to

holds

be

it/-'<It

experience

for

10,000

over

licensed

by; Ad-

our

credit
to

Costs, Higher Output

make

miral

possible

television
than five

more

with
a

•

.i

receiver, having

duced

in

consumer

All these

-

as

and

I

do

me-r-

as our

receivers

TV

1947.

you

much

first

intro-

not' know

of

other industry that is able to

beast of

men

such achievements in the

not

that

mean

the

and

women

being shifted

are

into jobs that require less muscle
and
more
brain.
The unskilled
is

worker
.

going

be

to

less

and

less in demand, while the market
fcr
-

........
skilled,
higher

will

continue

to

labor
...
paid

grow.

.

Approaching it realistically and
intelligently, pushing aside the
alarms yet recognizing the dan¬
gers

example, in the automotive in*..
dustry ,which
is very, highly

trial

mechanized, e m p 1 o y m e n t has

and

it

could
_

pattern

in

surge

pose,

we

-ki¬

can

automation"iii'"our"Indusour

give

In

so

everyone

'

to 'put

as

nati0n's
a

new

prosperity

better

to-

m0rrow.

field of-manufactur-

ing, employment has increased by
73%. Between 1S40 and 1959, the
of.

failure.

developments in auto¬

do

tegrate

number

the

cn

economic

push-button factory is just around
the corner.
They do mean that

teleehone

operators

'

•

,

Form C. J. Montague Inc.
C.

J.

Montague,

formed

with

Inc.

offices

at

has

been

420

Lex¬

by 79% despite wiieington Avenue, New York City to
spread installation* of automatic
dialing systems. Meanwhile, the engage in a securities business,
nation's population increased only Officers are Sidney Rosen, Presin
T-i**
in— n
:
dent; C. Joseph Tritt,- Vice-Presi22% between 1939 and 1953.
increased

i— r.

.

means

less than half

commercial

Ad-,

times the picture

.

that

we

helping

21-inch

while costing the

area,

—and

any

experience,

own

Automation

more

will

statistics' from other fields,. For-

in the past'14 years.

ignoring

withering

eventual

mation

employees are concerned. Wo
quote
some,; interesting

over-all

and

vine

and

in

might

the

--

result

the

lnC/^aMnr^

as

'■;

,•

efficient production methods

a sepa-;

match

to

blinders

on

to

cabinets

more

doubled

miral."
Lower

Conclusion

conclusion, we want to em¬
phasize that any company com¬
petitive age is doomed.
Putting

displays.

patents pertaining to radio,

television

-

<

In

must; be serviced regularly and
kept filled with components.
(4)
• Our
television
cabinet
and

profit.

reasonable

a

a

photographs 1.
More people hav~ been reFinally, 'in Awed for packing .and snipping.
January, 1955,- Admiral licensed;
So you can see that automation
Radio
Corporation
of
America' is far from a lost cause so far
in

assem¬

of

feature

with

•

plants have had to produce more

AUTOMATION

cur

In

This

TV

or

- Admiral has passed along savings in production costs to the
consumer by-, adding new useful
features to its products. We are
fulfilling our ^obligations to the

departure

a

,

troduced

automobiles
machines.

baild
the
electronically-controlled automatic
time."
production machines.
•
advertising
department
(3) The automation equipment
rather unusual
of

name

the

1952,. after
our
engineers were certain they
were on the right track, the first
Admiral radios containing printed
circuits were shipped to our dissummer

have had :to S3t

We

in'.aniu.all>.

and based the theme of the

machines.

tributors.
new

I

developed entirely with pri¬
capital and not under gov¬

ernment

we

by

Research

Feb.

in

vate

schematic dia¬

into the vast amount of
and
capital
expenditure

laboratory.

out

ln

of automation

of

production

mass

cuit

first

wiring.

to reduce production costs and to

.

using automation
Hideaway," w h i c h

Department
our

go

Admiral's

of

of

physical

and

went

bly

Commercial Electronics
new

that

that

printed circuits would

the form

grams

were
a

ceiver emerge from the other end.

The

be in

work

slow in

very

production lines

our

chunk of metal in

have

decided

was

venture in

industry have been

our

been

years

chemical,
cations

has

made

Circuits

Printed

It

uni-

actually has-increased somewhat"
and-here are the reasons why: '

At

say.

AUTOMATION.

from laborious, tedious and
chores.,
Various
back-breaking
of

that
Our

its

man

forms

to

"We're

the

was

our

in

concentrated

happy

did not

Hernando's

man¬

of

engineering
departments
engineering^ departments

more

, rf

agement recognized the need for
a

are

production,
trouble-free. pile up bigger profits. But, this,
soldering with greater resLtance in the last analysis, would hurt

,

we're

we

swer:

1952,1 Admiral

in

advantages

form

.

CEh'°h if fS ,par4lculf plan4 ,ln printed circuit department t) pro-e llrs^ auLomatic prod 'c- d
the hundreds of thousands
tlQn equipinent wa3 installed. We
„.5ii
hr
r-rf-Urp^
ied aU
ies with thi.
_,cf pare , that-uill be r.quired

inin

and
aua

quality control.

mechanization.

of

3/iore

first

this

efficient, but detrimental to good

it

u

Actually, automation in
a

with

faced

30

to

your

on

wraps,

Easter clothes,

or

been

we've

which

tnemselves at home

dustry is

S
some

to save some money for

constant hiring and training cycle

with
do

to

or

Christmas gifts

n'art c-Tthnt mpn
p.ant so mat men

more
-

bills,

Automation

doing

work

a couDle of monflis to
Dav
a.couple of months to pay

paratively new word in the Eng¬
lish dictionary, the theory of autarnation really is not new.
We
like

to'

want

of auto-

the-' world about it, .especially, suiting for the most part iir re- prblie to provide the-best pos?lfice '°ur competition ;does not-■■assignment to other-sections of sible product at a fair price that
have the was to take off ..the the'production litre. Employment" will provide the--; manufacturer
equipment._ 'Tnes,-final
declsi0n

...

Although automation is

the age

toss aside regard for

may

thereby eliminating from lo the workers' welfare and make
individual checks.
Ad 11-. use cf the new technique simply

and

yelled back, ; "I. " •
•••
side they re afraid V \
*
Employment
to open their mouths.
Now, how acout our.experience
That was the crux of our agru- with persornel in our plants. To
ment- for announcing the- devel¬
rather
dnte,
rather than displacing a.
than
opment and use of automation. .'huge corps of workers, there has.
Let's open our mouths and tell
been, omy slight dislocation, reguess

at this time
In addition to being backward
attitude they, in production techniques, our iniraye taken on the subject and dustry also has been historically
for the intelligent approach they one of high labor turnover. Most
j -ave made to cooperation with of our assembly line workers are
wmmm
wn„,„n
wnn
ln
women.
Women who live in the
management.
;

labor

mend

maticn,

most

that industrial manage-

entering

ment,

-

single entity,

a

then

moment,

As
Backwardness

testing it as

by

fear

persons

some

„

enormous.

.were

What
of all is

•

day's production—and the chances

labor

to

in living standards,
industry ana labor ae-

both

as

Finally, he called over to the sue- t0 vibration and jarring, greater industry, too, for with joblessness
cessful fisherman, "How is it that -resistance
to
extremes
of
tem-. rampant
and money scarce, it
you're catching all the fish and perature
and
humidity,
more, would have no ready market for
I'm not catching any?"
'
flexibility
of
engineering
and. the growing output made possible
The
German
tnought
for ; a easier-servicing, in the field.
by automation. One cannot sell

1,000 opportunities for
mistake.
Multiply that by ap¬

a

tion's press, and b,y labor

production. Any.

printed circuit section

automated

watched enviously.

s*.n^e

assemb.y. Automation, we believe, can bring

in

savings

Furthermore, it is possible
make a unit check or each

to

who hedn't got a

The Russian,
(

over

was

were

his hook,

bait

could

formerly were over 1,003 individ¬
ual soldered connections in a 21Thnt
inch
television
receiver,

safer

for human error is elinn-. knowledge.

chance

German

The

zones.

paying

nated.

pulling in fish as fast as he

was

.

Automation

re¬

fishing from opposite sides of the
river
dividing
the
Soviet ar.d

manual assembly job

be

to

who

Russian

requiring higner skills and
higher wages.
Cleaner,
jobs.
And it is true, fur¬
thermore, that the increased pro¬
ductivity-—in addition to its other
effects—has helped the working

types

automation

in

eventual

of the story of the Ger¬
the

the

Jobs

stand¬

troi cf television

situation

also, that
machines
their installa¬

of

costs—is the absolute qua.ity con-rnew pinnacles

.

_

tug-of-war
me

and

man

■■

,

This

iron op¬
radio or
a
virtu¬

was

103%

ally

will

discussion

Our

receiver

group.

as

where the factor of human error

merely Admiral's experi¬
in this development.

know.

cover

years

a

television

not intend

we

Producing

eration.

to be an all-round

for

described

been

screwdriver-so'dering

a

automation, and we do
to get into trouble to¬
day by trying to tell more than

expert

radio-television industry

that the

Naturally,

department was in the latter

my

is true,

it

0f the

Qne

the

promoting

achievement.

But

*

building

economies.'. population to shorter work weeks,
greatest advantages. higher wages and other, improve- •
cf automation •— aside from tne ments in their standard of living.

for

all-ouc

was

and

publicizing
Admiral

should like to point out

we

other

the

while

is.

cf

instead of each cornproceeding full steam ahead
Witnout regard for future Gem¬
p0nent costs which are a prime

quiet, jacicr

development

our

need for

component

real

a

pany

on the subject of autoOne
group
wanted to

mation.

keep

the

an(j shapes,

the

within

thought

of

company

equivalent to approximately 80%
of all the wiring in the chassis.
This sounds like a revolutionary

it is

There l is

two

had

we

cart.

a

plus
try shculd take immediate steps themselves,
to standardize components for use tion, operation and maintenance,
creates
new
and different jobs.
in .automatic
assembly systems.
ardization

time

of

invention

since

case

the wheel made it easier to draw

TV re¬

automation a reality
the electronics indus¬

by

believe

we

production

automatic

that

schools

circuit section in
television receiver is

printed

the Admiral

men-

that

lion

*

if

*

sub¬

our

ceivers

the

been

■.

the production of

Witn

line.

At

tables, and in refrigerating thou¬
sands or raiiroad Height cars.

4

—

controlled

them

repair.

getting

fore

into

in

compo¬

Someone has to keep

nents.

industry.

with

filled

them

keep

matic n

display of poul.ry and vege¬

as

erances.

parts were inserted by auto¬
on
an
electronically-

to

has

Someone

machines.

the

cubes

taining
icuum-s.

_

chassisineor*v ^ejj
rr.ajoi.
section

printed
Practically gaged.
later
we
announced
a
vertical
*
*
*
everyone who can read has be¬
chassis
with an
8-tube printed
If vou are anticipating a push¬
come fully aware during the past
circuit panel equivalent to oneyear of the ar¬
button, workerless factory, you're half of all the wiring in
the
rival of augoing to be disappointed.
Some¬ chassis. More than 63 components
TOM A T I O N
one always has to
start and stop and
—admittedly

buy

now

physical dimensions as
.uux-ivw
v..
It is true that h technological
eletiriCai specifmaiipiis of advances, including automation,
a
°v.comnonents because au.emotion have cut down job requirements
ma3°ThrprTnrf'« ..components because au.cmntion hi certain categories. This has
Three
mo,itns
wiring.
Three montas p '-re3 ve,
reqv^re3 wrv c;cs. physical tol¬
rirs.* nhvsicai tot-

,

Admiral is en¬

and

engineering peo¬

ple have had to impcess upon
suppliers the importance of main¬

television

a

important one.

an

House¬

necessary.

are

customers

cooling, packing

pnee down.
Our industrial

June, 1954.

fered

which

in

tronics

is in¬

in television

Automation

deed

longer

no

completely

hold

with

receiver
in

and standardized components.
*

in operation.

tern of ice distribution
has changed,
to be sore. Large
c.eliyr/ systems to serve homes
pa

group

Admiral introduced its first TV

of automation

better tomorrow is seen by the use

a

last year and more

are

clear sailing witn these automa te
r-assembly machines.
Our eii- inpaper tags for ; picnics and
large parties instead cf b.ocks for
used in a horizontal chassis, -the gmecrc; have hai to modify conithe icebox. Over 8,0.0 automatic
printing and tube sockets were ponents. slight.y lor machine use.
vending machines nGw offer ice
on
top
of the printed - circuit While this resulted m slightly
hour throughout the napanel, the components were on higher costs iniaady, ir.meassd at a. y hou
...
tne
bottom, inside the chassis. "w. output gradually is bringing the ticn. More ice is being used on
farms and in the

job dislocation, net employment gain, higher skills and pay,
cleaner, safer jobs, and shorter work week. The way to pros¬
perity and

p ants

Tne

chose a^ six-tube
section of the chassis. As this was

research

(3) seme

labor turnover, better production;

lions, reduced

;J

panels for radios.
We haven c enjoyed

TV

The

television.

to

use

ice

-

million

$vlo

assembly of printed circuit

in the

ice inaus.ry sales nave in*
trom
$L27
million
to

l»c5,

treated

line is opec&tmj

automat on

rate

thoroughly

Since

tually is busier than ever.

automate

production line. "Heads'- ta_ able
of
performing
new
opera.,o.^s
also are being developed. A sepa¬

pre-testing
printed circuits tor two years in
radios, it was decided to extend
After

bought an electric

Tocays iceman ac¬

leingeratcr.

being

are

.,

monthly to the

added

for itself.

Corporation

Relations, Admiral

'' Director of Public

'■

a

uni.s

Additional

only

ment

of

SHERIDAN*

By MARTIN
.

*

24 panels were re¬
factory,for replaceout of more than a quarter
million. This record speaks

cuits,

turned to the

Better Industry

a

oeen

who

customer

years when*. costs have
continually increasing.

post war

against something new. As proof
of the reliability of printed Cir¬

Automation in Television

■

Finanzial Chronicle... Thursday, March 15, 1955

(1314)

.

and Treasurer, and E. F.
Tritt, Secretary. Mr.- Tritt was
when anpreviously associated with M.« J.
The iceman has discovered that Schuck & Co. and First Investors
Let's

as

he

an

look

at

ice

industry

what happens
industry is mechanized,

example

didn't

the

loose

of

every

household

Corp.

.

.

*

•

■.

'

,

Volume 183

Number 5516;.. The Commercial and Financial Chronicle

' "

"

.

.

'

*

'

\

(1315)

*

27

Business
Man's

jj^feDVVARF

CROWN

plays an important part in bringing to the households of America

.(Special to The Financial Chronicle)

a

CINCINNATI, Ohio — Helen E.
Scholle has joined the staff of A.
& J. Frank Co., Fifth Third Bank

Nearly half of all the bottled
beer

Building.

are

and

drinks

sealed with

made

Livingston, Williams Adds

soft

host of packaged
CROWN

sold

products that make life more enjoyable and convenient.

produces the metal

caps

which seal

impressive list of

an

soft drinks, beer, food, cosmetics, toiletries and many other household

bottle caps

by Crown.

items.

It makes the Dacro aluminum caps used on milk bottles

by-

(Special to The Financial Chronicle)

CLEVELAND, Ohio

dairies from coast to coast. Machinery and equipment for
filling and

Samuel

—

T. Day has been added to the staff
of

Livingston, Williams
Inc., Hanna Building.

&

;

Hundreds of dairies from

Co.,

Dacro Aluminum

Caps

their milk bottles.

•

on

<

;

Williams Securities Corporation

p>

has been formed with offices at 99

Street,

engage in

a

New

York

City

to
securities business.-

of

Many
known

.

the

best

brands

H

of

glass packed foods,
cosmetics,

Joins Carrol Hoffman
(Special to The Financial Chronicle)

.

ucts

Carrol

State

Street.

Hoffman

&

Co.,

for

Wherever the modern housewife

her.

Through

research

constant

Webber,

and

development,

contributes to better living by improvements in the

are

packaging of

metal closures.

CROWN

CORK

SEAL

&

is

now

Jackson

with

&

Paine,

Curtis,

is

one

of

manufacturers of

Charles W.

—

Crown

24

soft
also

drinks
makes

and

the

world's

similar

The

Company

equipment

dairy and food industries.

COMPANY, INC

Baltimore 3,

for the

pressure

ing

can,

creams,

Maryland

is

another

of

Crown's

insecticides and

touch-up paints

few of the many

are

products which

but

and many

are

ucts

unique container.

become

large

Two-piece
canning

with

affiliated

Street.

previously
Company.

with

Mr.

First

Peters




—

Caps

for

home"

the products sold

also "Freeztainer," the

refrigerator food storage.

•

was

California
.

Mason

are among

plastic container for deep freeze and

Dempsey-Tegeler & Co., 210 West
Seventh

,..J'

are

Crown.

Arthur B. Pollock

Plants at: Baltimore,

food,

oil,,

paint, chemicals, , beer

Dempsey-Tegeler

and

for

Cans

packaging. Shav¬

cosmetics, dessert toppings,

by Crown
have

vast

"SPRA-TAINER", the original light weight
contributions to better

a

ANGELES, Calif.—Charles

Peters

a

leading

machinery for bottling
beer.

•

(Special to The Financial Chronicle)

LOS

also

products used in the great majority of households.

sold in this

M.

serving

CROWN

on

Street.

Two With

shops, CROWN products

their

89

(Special to The Financial Chronicle)

BOSTON, Mass.

Federal

are

-

Now With Paine, Webber

Jr.

also manufactured

division.

can

P.O. Box 1837

Graham,

are

Cans for food, oil, paints, toiletries, chemicals, etc.

produced by the Company's

number of

prod¬

depend

Crown

ID

toiletries

and household

BOSTON, Mass. — Margaret A.
Mullaney has become connected
with

by CROWN.

:

Form Williams Sees.

Wall

capping soft drinks, beer, food products and milk

.

Crown's

coast to coast use

Philadelphia, St. Louis, Detroit, Chicago, Orlando, Bartow, Birmingham, San Francisco, Los Angeles

other prod¬

produced
volume

in

by-

The Commercial and Financial Chronicle...

been

Electronics and the Future

works.
vibrates

way

a

good way — of embracing
the kind of thing that in the early
rather

used

1900's

less, and then
after
about
known

radio,

America

d in

most

hard

other things, the

and

the expenditures

work

associated

important sums of money—and
the various frustrations that al¬

with

and

North

of

most

that

able

really

to

apparently

We have reached

stage where
of

of

we

don't

them.

be

told

are

ignorance and

the

some

to

at least we

own

our

it

intended

nature

should be used.

imponderables,
know the answers

For

instance,

you

will

replace ALL tubes in your radio
or your television set.
I think
that that is a wrong concept.
It

set

might be much fairer to say that
the transistor would replace some
in your radio or TV

the tubes

of

In the elec¬

set, and more important still, the

transistor, because of its charac¬
teristics, may enable us to do
things which are not yet possible

business

tronic

times

a

station
about

second, and a broadcasting
vibrates anywhere from

times

500,000

second

a

to

1,500,000 times a second. Taking a

number on your dial, all
has
happened is that the

given
that

extra

been

have

zeros

cut

off, and when you tune to a sta¬
tion at 1000 or 600, or 500 on your
dial, it really means that you are
tuning in to 1,000,000 or 600,000

the

with

of

limitations

I

tubes.

feel that far better than thinking
of

a

device

new

old,

device

replacing the

as

should consider the new

we

to

of

know

devices,

to

Operators
medium

no

promise

more

We

laugh

to

course,

that

in

sometimes

are

outside

field that offers

the electronic

of

mechanical,

use

other

Electronic
I

direction.
of

inclined,

the

at

idea

of

having some kind of electronic
computer installed for instance in
an
office of ordinary size.
We
look

in

it

at

in

two

mind,

my
say

too

marvelous

that the

firstly

for

and

ways.

thing

is

really to

men

and understand, and then

control

secondly,
that if

we

inclined to

are

say

put it in it will put a

we

people out of work. Actu¬

of

lot

different,

incongruous,

We

may

transistor

the

that

however, devices
vibrate several hundred thousand

in each second.

occur

with

or

they flicker 60 times per
60
complete
reversals

second.

if it

believe they
50 times per second.
I

states

Montreal

In

Television in 1928
As

recent

more

the

to

flicker 33

gadgets. More¬

If

effect flicker.

in

Toronto they flicker at
cycles per second and if you

go

as

a n

lights

go to

recognize

be

will

we

and

end.-

that

engineer,
a
good

tremendous way to go

a

is

electrical

made

also

we

of

develop this thing in the way that

but

three

became

1 9 2 0

before

all familiar with the fact that

very

25

may,

be called wire¬

but

of

these

in the course of a generation
or two, displace the human being
as
the controlling force of many
oflensive and defensive devices.

to

have

have

we

the

you

possibilities than

where it begins to appear as

electronic

we

aware

are

electronics
gradually reached the place

has

the broad¬

that

the

start

stage

a

point

of

a

in defense work

over,

mechanically.

or

we

brate by a

replacement.

perhaps

—and

string

the

from

feel

view

station is caused to vi¬
different means and at
much higher speed. You

casting

and (3) that will permit office clericaltype employee to replace scientists now operating electronic
devices.
Mr. Finlayson visualizes transistor replacing some

modern

a

as

harp

a

is

station

much

electrically

difference

The

portant improvements,

and other kinds of

mys¬

familiar form

one

broadcasting

string or
vibrates sonically

(2) where nothing is made twice in the same pattern as prog¬
rate is so fast that standard devices come out with im¬

merely

A

piano

ress

The term "electronics" is

the

take

to

explaining how

Canadian

and foresees sounder growth rate as
electronics changes man from a beast of burden to an indi¬
vidual with mind and spirit. Electronics industry is character¬
ized as (1) of tremendous risk due to time lag between invest¬
ment and results, and that new products might prove unsalable
or find
a competitor's product coming out sooner or better;

mere

like

drudgery

have come to

so we

where

now

tery out of electronics a little, by

electronic developments

but not all tubes while providing greater

And

should

I

praises

Transistor

experi¬

actual

by

Electronics Explained

Ltd., Montreal

President

electronic

Canadian

Prominent

exposed

ence.

By S. M. FINLAYSON
President, Canadian Marconi Company,

a

Thursday, March 15, 1956

(1316)

28

group
of
device into
being, then surely another group
of men can operate it.
That has
always been the experience. The

ally,

if

however,

men

first motor

a

undoubtedly

were

cars

and

strange

one

bring such

can

devices

fearsome

to

anybody who hadn't studied them,
but we have now gotten to the
stage where
old

15- and

our

16-year

daughters

and

sons

are

pes¬

creating possibilities for
tering the "old man" to get con¬
expansion of electronic service.
trol of the family motor car, and
It is true that new things displace
with
very
considerable success.
old things, but it is also true that
So I feel that it may not be too
very often the new thing takes on
a
different form and doesn't be¬ long before our clerical staffs in
as

ways occur

of

has been

years

500,000 —or what have you — come entirely a replacement, and large—and even in small—offices
will be released
from
a
lot of
that is, I think, true of most of
with the bringing into vibrations per second.
facilities
that
electronics purely mechanical drudgery, by
Now
when radio started, be¬ the
being of something new—occur in
lika radar and
electronic computers of greater or
electronics long before the public cause of an accident in part, and bring to us.
t e 1 e v i s ion.
lesser complexity.
Some of these
hears about a particular device. because of lack of knowledge and
Basically,
devices would fill two or three
Canadian Research
We
in
of facilities
in certain
Montreal,
for instance,
respects,
however, elec¬
Now what does all this mean rooms, and they have to be "pro¬
have had television pervading us the rate
of vibration was rela¬
tro n i c s
is
I per¬ grammed," as the technical term
S. M. Finlayson
for 2% to 3 years, but I have to
tively low.
It wasn't until the for us here in Canada?
merely
a
is put, by people who are of the
advise you that I, at least, saw middle
sonally feel that it means a great
1920's
that
in a
com¬
branch of the
rank
of
Doctors
of
Philosophy.
my
first television program in mercial sense at least, the higher deal indeed, if we are willing to
broad subject of the handling of
It's equally true, however, that
meet the challenge and if we are
the Dominion Square building in frequencies
began to
be used.
electrical energy in one form or
you can take an ordinary mathe¬
1928, and it was not by any means Usually then we were limited to willing to recognize our own des¬
another, and there is a very close
matical clerk and in the course
new
then.
As a matter of fact, 1,000,000
or
1,500,000 vibrations tiny. In the first place, very im¬ of
relationship between the supply
a few weeks you can train him
the first set of patents on TV per
portant fundamental work is be¬
second, but now we have
of power to the lights in your
or her to operate such a machine
expired about 17 or 18 years ago, gone into much higher regions. It ing done in Canada by several
home and the use of similar power
with fair success, and newer, sim¬
and the second set of patents are is as if we took the piano there groups today—and that has been
■in different forms in electronics.
perhaps I
almost at the same stage now, so and started to play at the very going on for a number of years. pler, smaller — and
things

Development of Electronics

75

to

get

telegraphy
much

that

did

imagination that

that

they

were

telegraphy

was

was

,

very

a

noisy sort of thing and compared
to today's method was very in¬
One of its chief charac¬

efficient.
teristics

that,

was

in

30

communicating

addition to

miles,

40

or

people who were concerned
business in early days

some

the

with

often

the opinion that
you could hear the spark almost
as far as you could read it through
expressed

We had

the ether.

spark de¬

one

vice at Glace Bay which was used

transatlantic

station, and it
a calm
day
you could read the noise of the
spark five miles from where the
as

a

was

transmitter

all

But
done

was

of

away

technical
about

that

loud

so

1915

on

located!

that

has

with by a variety of
improvements.
Since
1916

or

be

nQt

valve

which

—

the

the

tube

in

appears

kind
your

of

and

television sets with which you are
all familiar—has become the core

of

electronic

recently,

procedures.

a new

More

device, which

you

'

have

no

doubt heard of, called the

I transistor,
ance,

has

made

its

of time the

transistor will

play a very prominent part in the
subject of electronics.
Another

tronic

thing is that electronics

necessarily
methods
of

manner

wireless.
are

things

used

in

Elec¬
for

addition

all

to

communicating from there to there
without

distance

wires—almost

telephony,

for

depends in large part
tronic

amplifiers

and




all

long¬

instance

upon

is

Another factor

is

1

rather

it's

difficult

board-and

key

to

keep

technologically with the ad¬
that are being made, and

octaves and
octaves

about two

up

three

or

have all the other

we

to go.

Apparently these large numbers
the

in

create

public mind

tain

amount

of

even

dismay.

The fact

to

station

400,000,000

Then

call

radio

from

elec¬

repeaters,

and

in

that

devices

vibrate

we

on

up

from

400,to 6,000,000,000 times per
And radar such

the

000 times per second, and a num¬
ber of devices which may here¬

keep

with

up

business.

set out

we

all

illustrate

To

by that:

mean

certain

board

required to
phases of the

on

what

months

some

ago

development of

a

electronic device
of

I

directors

and

a

our

in

concurred

the expenditure of three-quarters
of a million dollars without any

certainty whatever
would

we

ever
get an order of
kind for the particular design.

any

and
an

to whether

as

a

fell "on

we

month

or

two

our

ago

feet"

got

we

order, but it could quite well

have been

that the device

have been found unusable

would

that

or

ships at

on

after

come

several

at

as

is used

vibrate 10,000,000,-

sea

into being may vibrate
times these rates.
So

please do not be confused
mayed when somebody

ten

competitor might have got¬

there first with

better gad¬

a

get and that would have left
with

our

money

to show for it.

spent and nothing

That sort of proce¬

dure is true, of any company

gaged

in

us,

the

en¬

business.

electronic

Furthermore, in general nothing
is

ever

pattern.
our

made

if

that

this is a dangerous thing. In
fact, it is a system which is de¬
veloping logically, but unfortu¬
nately, like the polio vaccine and
a

of

lot

some

other

subjects, it has in
been distorted in the

ways

public mind and has either been
into

made
or

too

great

has not been made

portant
been.

as

In

mystery

a

quite

but it isn't too
and I think it is al¬

standard

ever,

devices

made twice without im¬
modifications

which

involve

of
us

gineering work and other
sive

the
rarely,

even

are

we

have

perhaps it might have

the

last

50

60

or

some

in

en¬

expen¬

years,

broadcasting,

as

com¬

trans¬

vision
lice

radar, taxi-cab radios, po¬
fire
departments

and

equipped with radio, aerial navi¬

gation—which is incidentally

very

largely
radio
more
we

dependent

on

devices—and

a

various

whole

lot

things. I sometimes feel that

tend tq overlook

just how im¬

portantly and how fundamentally
these

things have crept into

lives.

Even

as

though

individuals,

or

them,

to overcome weaknesses that have

every

into

do

direct

people
day

we

on

not

always

contact

are
our

our

personally,

witth

using

them

behalf.

is not only
an advance

years

that

work

to

are

must

It

That

fields—we must

others
thinking.
There

is

say

of

as

for

tain

a

done

going

to

this

I

na¬

does

not the

but

and

to

seem

tronics is

by

one

lease

which

tool

or

from

mation

fied

of

vestiges of slavery

we

provided

let

don't

we

itself enslave
We

have left,
the thing

long way in

years—and par¬

the

muscle

power

portant
but

in

very

where
the

was

factor

in

me

much

that

of

we

closer

human

one

releasing

manner

it

have moved

to

brain

and

human

really an im¬
the situation,

moving in that
to

essence

ways

where

point

years

the

power

of

the

humans

point
is

of

best

from

to

think

Nearly every busi¬
busi¬
in

it

Now

in

one

sense

suddenly, for

are

a

itself

of

way

should
but

or

rea¬

little difficult to

is

just

saying

and

be, not

simpli¬

a

that

we

are

a

beast of burden

a

individual

an

with

a

mind

spirit.

I should like to leave with

„

you

the
thought that electronics is
neither mysterious nor all-power¬
ful.
It isn't perfect, and on the
other

hand

overcome
a

ticularly in the last 25 to 30
from

re¬

us.

have moved

the last hundred

seems

not

will

stop

automation for

releasing the human being to be
what
the
Almigthy apparently
always intended that he or she

many

whatever

its

and

opportunities, but

discern it has gotten to the public
mind as a great new thing. Auto¬

Furthermore, it gives

mankind

least

manufacturing

had had

indication of being the sort

device

of

field but in

own

the

in

automation

its

have had

which

sons

elec¬

development,

modern

about

another.

kind, because it lies at the
root—or
nearly at the root—of
many

and

energy

not

am

every

ness,

that

only in its

one

we

ness,

in

objective

human

20 or 30 years.

any means—

an

have

tremendous

a

people don't

many

of the best, in which we

accomplish

for

that

and

that

of

will-

we

to

power.

hazards and

individuals.

me

around

amount

of the best media—

one

only

one

can

scientific

our

brains

will

and

an

afraid of what is currently called
automation.
We
hear a
terrific

devoted

be

be
and

Automation

original

retaining

and

up

country

industrial
It

must

wealth

building

stage

that

brain

have got to recognize
increasing amount of our

national

hundred

dollars

by

release

we
an

few

reach

cally, politically and every other
that

will

computers
a

thousand

gotten

tionally, internationally, economi¬
way,

few

of

for

ordinary office
clerical-type employee. When we

we

survive

to

Where¬

cost half a
dollars, and have

ones

be operated

many

our

big
more

kinds

available

other
not be dependent

for

or

—

calculators

to be run by scientists, the day is
surely not far distant when cer¬

cannot

we

present

million

that if

properly,

appropriate

more

electronics

appearing constantly.

are

be little doubt that if

can

Canada

might

forms

other
people's
the electronic

in

goes

upon

me

that

follow

developments

been

to

develop

slavishly
field.

has

seems

recognize

every

telegraphy and telephony,
long-distance telephone tele¬

competitive

to be

the

elsewhere.

the

come

either

accept

few

other fields.

in

order

to

last

fundamental, but it is

oceanic

procedures

preliminary

come

monplace,

im¬

as

same

hats,

literally true that

portant
kind

the

in

It is not quite as bad as

wives'

far off that,
most

twice

dis¬

or

tells you

of

of the work done here

some

the

in

we

second.

second.

are

that

except in the sense

numbers, our scientific peo¬

mere

of
a

the

100,000,000
per

relays which go

there to

cer¬

is that

vibrates

times

have

we

a

confusion

000,000

that

to be¬

reason

every

ple can hold their own with any
body of scientific people in the
world.
There
is
good evidence

gone

it's very difficult for one company
to devote the time, the money and
energy

seems

only

vances

up

There

lieve that

neighborhood of from

that, in gen¬

eral, the rate of progress is so fast
that

the

of

gradually moving up to the
treble end, but so far we have

were

television

Investment Risk

■

most

isn't

may

the idea

but

long,

as

of

forms

there.

still

appear¬

and it may be that, in the

course

other

end

bass

or

thing

radio

out

devices, the term

Fortunately,
been

now

of the
trying to
of it. The

view

of

of

true

is

electronic

some

the

point

something

same

we

the medium.

the

make

true when spark

telegraphy

Spark

from

So
the

still
•'read about messages being flashed
and things like that which is cer¬
tainly no longer true in the sense
public

30

of

people who have been

practical spark

introduced.
device grip

was

thing we are

fact, something of the
perhaps 35 years old

actual

order

prominence just

when

1900

in

started

a

to consider as very new is,

prone

develop¬

—

will see that

you

and began

ago

years

certain

a

before

business

the

of

ment

>elose
to

the

business—or

The

or

devices.
is
if

that
we

it has helped us to
imperfections of other
My own personal view

if

we

give it

grow,

if

we

think

of

its

it

in

fairs

its

nurture
a

the

proper

study

it

thing,

chance to
and

if

we

realistically and put

proper

place in

economically,

our

af¬

politically,

scientifically and otherwise, then
we

will

find that

we

will

permit

Canada to grow at a much better
pace,

along sounder lines, than if

Number 5516... The Commercial and Financial Chronicle

Volume 183

(1317)
do not

we

done

recognize what
that

and

basis for
not

will

we

be

can

create

a

Budd Common Slock

1947 to

retaining in this country

only

hundreds

thousands

of

tens

but

people

otherwise be lost to

Underwritten by Blyth

of

might

who

The

Budd

us.

holders
I

would,

the

subject

of

therefore,
may

whenever

come

think

up,

it

critically, think of it con¬
structively and to take the angle,
if possible, that every encourage¬
ment

should be given to anybody
is willing in a sensible way

who

to spend time or
money

the

thing

yet

in making

useful.

more

And

remember, please, that the things
that we as the ordinary fellow in
the street
usually see in elec¬
tronics
and

merely

are

often

belated

force that is

than,

civilization
tne

next

the

that

cnree

outward

evidence

nothing

of

one

the

of

less

more or

beasts

of; the

confronts

or iuur

a

for

us

creased

of

Company is offering
its outstanding com¬

shares of record March 12,
1956, rights to subscribe for 395,096 additional shares ($5 par) at
$19 per share at the rate of one
mon

share

new

held.

The

for

each

10

shares

offering, which is be¬

business.

increased
the

Net sales

$193,500,000
$316,573,000 in 1955.

same

years,

$3,722,000 in
791,000 in 1955.
The Budd

veloped

1947,

to

bodies

For

the

tion, and is

one

the

expire at 3:30

builders

p.m.

(EST)

March

27, 1956.
Proceeds

cars.

from

the

sale,

along

with a $7,000,000 loan from The
Equitable Life Assurance Society
of the United States, will be used
to

provide

capital

additional

necessary

to

working

meet

its

in¬

of

railway

it

a

welding

steel

three
cents

as

all-stainless

steel

On

material, the

railway

now

&

July, 1955,
its
produce

vulcanized

Mich.

Seay, Jr., has

—

George

become

Watling,

Lerchen

Ford

Building,

members

Ball, Burge & Kraus

quarterly
a

share,

dividends
and

35

a

of
cent

Ball,

*

stepped

Burge

& Kraus, Richland
Building.
Mr. Black was
formerly Mansfield representative
Trust

for

Merrill, Turben & Co.

up

6,

1956

quarterly

a

(Special to The Financial Chronicle)

35 cents per

dividend

MINNEAPOLIS, Minn.—Forrest
A.

was

Nutting has joined the staff of

Craig-Hallum, Inc., Rand Tower.

Company

its activity abroad

During 1955—our 68th year—The
Company achieved impor¬
tant
gains in many phases of its
operations, establishing new highs
in crude oil and natural
gas produc¬
tion, refinery runs, and sales of re¬
fined products. This
high level of
domestic operations produced earn¬
ings of $41,255,000 or $3.14 per
share, about eight per cent more

quired

interest in vast new
substantially in¬
creased its exploratory activity. Con¬
cessions, leases and exploration

Ohio Oil

With Cyrus J. Lawrence
Cyrus J. Lawrence & Sons, 115

Broadway, New York City,
bers

of

the

change,

New

York

mem¬

Stock
that

announce

Ex¬
Hans

Heinemann has become associated
with the firm.

Irving Lundborg Adds
(Special to The Financial Chronicle)

SAN

JOSE, Calif.

Makin is

George T.

—

ing

Lundborg & Co., Bank of
America Building. Mr. Makin was
formerly with First California Co.

other

companies, Ohio Oil

has

become

connected

Investment

Park

Capital expenditures, which

Net Income per

476

OF

THE

FRANCISCO,

Street,

York

$3.14

$2.91

Share

$1.55

$1.50

$39,049,000

$41,365,000

$76,890,000

$68,592,000

.

.

.

.

Operating
»•

Net Crude Oil Produced—Barrels per
Crude Oil Transported—

Calif.—Mi¬

members

of

Day

Millions of Barrel-Miles.

Exchange. Mr.
previously with Earl

a

copy

Day.

Refinpd Products Sold-Barrels
For

per Day

of our complete 1955 Annual

-•

23,150

Crude Oil Refined-Barrels per

A. Holtham.

With H. L. Jamieson

98,404

Refined Products Transported—
Millions of Barrel-Miles. .....

the

Stock

was

1954

$38,223,725

Dividends per Share

chael G. Telesco has become asso¬
ciated with Davidson & Co., 155
New

1955

$41,255,462

Co.

(Special to The Financial Chronicle)

Telesco

YEAR
'

Working Capital-December 31.

With Davidson

Sansome

are

higher level in

Capital Expenditures

Co.,

Avenue.

SAN

a

1956.

ac¬

Consolidated Net Income

San

Inc.,

$39,049,000 in 1955,

programmed at

Financial

with

Egypt, Libya,

Canada.

HIGHLIGHTS

JOSE, Calif.—Jack H. Call

in

acres

Somalia, British Somaliland and

Abroad, in association with vari¬

(Special to The Financial Chronicle)

Jose

million

totaled

Joins San Jose Inv.v
SAN

licenses in which the company holds
an interest now total more than 177

than in 1954.

ous

an

concessions and

affiliated with Irv¬

now

.

•

-

\

93,578

19,951

1,225

1,096

42,421

37,286

40,817

36,602

Report, write the Secretary,

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif. —Is¬

rael E.

Boniske is

Jamieson

now

with H. L.

The Ohio Oil

Co., Inc., Russ Bldg.

Company

Findlay, Ohio
Four With Reynolds

Producers

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Mrs.
Dorothy M. Hoffman, George W.
Metlar, Edwin Mir, and David
F. T.

Zee

are

now

affiliated with

Reynolds & Co., 425 Montgomery
Street.

i

Dean Witter Adds Two
(Special to The Financial Chronicle)

SAN

•

ard

FRANCISCO, Calif.—Rich¬

M.

Linder
&

Evans
are

Co.,

45

members

San

and

now

of

Kenneth

Montgomery
the

Francisco

N.

with Dean Witter

New

Stock

Street,

York

and

Exchanges.

Joins Wulff Hansen
(Special to The Financial Chronicle)

SAN
P.

FRANCISCO, Calif.—Alan

Fraser

has

become

connected

with

Wulff, Hansen & Co., Russ
Building. He was formerly with

H. L.

Jamieson

Co., Inc.

Reynolds Adds

to

Staff

(Speral to The Financial Chronicle)

:

STOCKTON, Calif.—George K.

Fuiimoto
with

has

Reynolds

become

&

Co.,

affiliated

301

Weber Avenue.




East

•

the

Joins Craig Hallum

a

records at home

new
set

Co.,

changes.

(Special to The Financial Chronicle)

★

of

3d

In 1955, The Ohio Oil

MANSFIELD, Ohio — Reid C.
Black has become associated with

&

New York and Detroit Stock Ex¬

generations.

Reid Black With

F.

connected

with

paid.

cars.

Watling, Lerchen

DETROIT,

other

purposes,

1955 the company paid

March

share

affiliated with H. L,

Co., Inc., 40 Pearl St.

(Special to The Financial Chronicle)

fibre,

and

industrial

With

share dividend in the last quarter.

pioneered the production of

structural

in

plastics

for

During

stainless

firm

a

Continental Dia¬

include

to

Klein is
Robbins

portion

tions.

largest

|

(Special to The Financial Chronicle)

particularly in electrical applica¬

passenger

use

Co.

major

expanding

products

process which

possible to

Fibre

laminated

na¬

Having developed early in

the 1930s

made

of the two

of

line

ducers of automotive wheels.
one

the

assets

thereby

of the major pro¬

ing
underwritten
by
a
group
headed by Blyth & Co., Inc., will

It is also

acquired

mond

all-

body,
is
the
independent producer of

automotive body parts in

farm

WORCESTER, Mass.—Henry H.

It

of the

introduced

steel,

ucts.

$13,-

automobile

largest

stainless

yf

plows, and various defense prod¬

Company, which de¬

and

With H. L. Robbins

Budd also makes highway trailer

in

net income went

from

steel

have

from

29

Transporters

•

Refiners

•

Marketers of Marathon petroleum products

30

Financial Chronicle

The Commercial and

(1313)

Electronics and Automation

cision

By DR. ELMER \V. ENGSTROM*

can

the

Electronic sys¬

As

information and

handle

mechanisms

control

can

at

In accepting the

*

the

it

future,

these

is

greater

versal to show the

*

Among many fields in which
Jchn Ericsson1 was interested, anc^

to which he gave

rather

much attention,
was weapons of warfare.
He pio¬
neered In guns,
' '
in fire control,
in armor, in

From

the

It

therefore

is

in

we

this

will

that

imperative

-country,

bend
to

the carrier.

impregnable

strength

in missiles.

He

We must be

determined

was

con¬

strength

with

cerned

build an'
that

merce

shall be kept as a de¬
against aggression—that

terrent

tion

self, in protec¬
against

the

weapon,
in coun¬

and

a

Because'- this

was

situation

world

in

E. W. Engstrom

Dr.

century ago.

Today

of the

Y.'YY- ples

our

we

still concerned with

are

Speeds and mobility are
far greater; destructive power is
vastly greater — yet the race for

February, he would be making

constructive proposals of profound
on

This

area

is

the

interest,

our

military missiles.
of

focus

of

our

W* rt f"pt

have

actions

to

reach'

Through nuclear

re-

catastrophic

proportions,
of the air we

Through mastery
have

Jin*'

-in,

have tools of destruc-

we

of

Jin

n

media

mass

men's minds.

tion

make in
Such

carriers

for

an

methods

today

a

nuclear

of living.

today

and

work

our

~

Here too, we have need,

the energy, the ingenuity and the vision which char-

life

Ericsson.

spanned

v

TLX

AM

J:

«

.nn

vinl*

dustrial Revolution. -He did much

to create and.improve
machine

power

burdens

of

so

man's

workand

make man's efforts

the

the

more

to

effective,

tasks, engage

same

.In some parts of the us today, although at a far more
clever men of- evil minds,- advanced level of technology.v
.,

the control switches.

man

problem in

our

For

almost

have

time.

cur

three

'.

decades,

in. aircraft and

vances

This is-

air

ad-

travel

progressively voided the ef-

fectiveness cf
barriers in

a

oceans as

military

protective

sense.

.

Now

The

Industrial Revolution

tinues

in

tionary
ing

task

of

in

few

hence,

years

in

will

but

span

a

an

evolu-

arr

replaced by machine labor.
first, machines took over the

At

missile.

missile of

as

process

power,

a

time

in which human
anc^ animal labor are steadily be¬

we
are
at
the
threshold -of a
further step, one which
really an¬
nihilates distance—a long range

Such

our

con-

ply

supplying and applying
Today, man does not sup¬

the energy necessary to ac¬
a production task, except

complish
those

of

cases

power

where

required

the amount

Relatively

is

minutes.

It

small

carry a nuclear warhead
almost
unbelievable
power

of

of control

of

The next phase of the evolution¬

ocean

matter of

a

will

devastation.

its

means,

tion

Through

guidance

electronic

and

detona¬

may. be

controlled with ac¬
Never before has so much

curacy.

in

power

military

a

available.

weapon

Never has such

been

ary

and

process

ment is

continuing at the present

rate,

to

are

today engaged in

termine

world,

race

whether
or

curtain

be

race

a

tech¬
de¬

to

in

the

free

the

iron

we

first

to

pieces.
at

have

the

an

involve

This develop¬
ever

more

increasing
and

more

complex tasks.
Production

behind

those

will

a

—

mechaniza¬

of

centration of potentials been pos¬
sible for control by so few.

We

the

was

number

and

nological

complexity

tion of repetitive tasks which in¬
the production of a large

time

Technological Race

the

volve

con¬

a

where

involved is very great.

carried

out

by

machines in which there are con¬
trols to direct the performance of
each

operation

in

the

right

se¬

quence and

during the right time
Very often these con¬

interval.

trols will detect

a

gross malfunc¬

financing,

,

1_

in

system

a

so

programmed 'that

is

It

automation

as'our

to

this: expansion.

by Dr.
Society

Engstrom
of

New York City, Feb.
acknowledging receipt of

^.neers,
in

Jchn

Ericsson

1 "The

Ccnant

;Vavy

Medal

before

Swedish

11,
the

En-

1956,
The

Award.

Journal)

(Editor

1890,

of

the

Army and

Charles

Scribner's

Scua.




.the fruits of ever accelerating re¬
or-search in the future, then we need
rethe kind of industrial system that
"tion.'We need the increase-! pro-

see;ri«ctivrty which automation prommore
so that all of us may have a
con-.■' 'i" Y

us

to grow
to be

seem

able labor force

enable

during the years

On the other

hand, I think it is
extremely important to realize
that, while automation provides a
means to an expanding economy,
it will not be the only

controlling factor in
sion.

We

must

be-

significant

the_expan¬

begins

human

some

normally

operators.

point that

directed

just toward pro¬
the case for the

be

not

duction.

was

as

Automation is
working

a

many

of

the control

provided
It

is

at

a

the word "automation."

svstem.

a

method,

of

arrangement

the

whole business.
In

industry

as we

of the consumers and of the busi¬

population will continue to
important in determining the

ness

be

health

future

of

our

productivity

High

become
sumer

a

economy,

itself

by

can

liability when the con¬

is not interested in buying.:

to

have it. todav,

ket and

process is respondemands of th« mar-

the

the rate of production

of

of

Economics

The rate at which
new

era

we

shall

.

move

of atomatkn will
so

much by

by

and

this
be
use

technology or by

of

the

the

economics.
sure

of

the

of materials

any

whole

by our ability to
We

process

understand
do

need

economics
and

for,

doing business—as
arrangement of the
business, where the enter¬

working

whole

prise must be treated as
grated system.

industrial unit

inv^stme^t
enterprise will

worker in an

rer
rise,

and in some cas^s in r*Bos
or hundreds.
The f-m'TRv.

of tens

of

to

the

facilities, of

kept working at

be
steady rate if

a

is

return

?Doronriai'e

from the investment.

both

and

cap'ial

1

resuU

to

As

labor

a

result,

must

be

b°

will in the future have to be ad-

justed
a

to

sTowlv

and

a

constant

changing

services,

or

flow

instead

tion being adjusted to

cf

at least
of goods

produr-

sales, as is

re¬

engaged.
This will
nearly continuous flow of

continuously
mean

a

goods.

merchandising

New

pro¬

cedures will be required to absorb
this

flow

of

goods.

Automation is

than

more

a con¬

tinuing evolution in the direction
of greater mechanization. The in¬
electronic .'control

of

troduction.

has greatlv accelerated

this.evolu¬

tion, but it has also added a new
dimension. Mechanization replaced
,

mor€

Automattoo^dow

It replaces routine

than+his

has

Mechanization

in

res-

some

spects made the worker a part of
the machine. Automation reverses

and frees man's work
provides increased
scone
for the exercise cf man's
highest
skills.
Automation
in¬
this process

from routine. It

*

volves

the industrial

system as a

is limited

whole., Its development

primarily by econcmic factors in¬
volving the state of the entire
business situation. It is the only
approach which we can now en¬
vision for obtaining the increased
productivity required if our econ¬
omy is to continue to grow and to
expand. Automation will necessi¬
tate

by

adjustments

^rnany

both

management but will
increase the assurance of full use

labor, and

of the contributions of each. Auto¬
mation is

a

of

to

way

and to

economy

a

an

expanding

higher standard

iivjnge
examples

I have chosen but two

from many

of

the

which

seem

to flow out

Ericsson's

period of John

In these and many more

lifetime.

making unprece¬
The pace is ever
quickening under the pressures of
military
and peaceful require¬
we

today

are

dented progress.

ments.
In

being true, the tafr'e will
turn^.
Marketing and sales

This

will

of automation

that the facility and the
people who man it must be kept

quire

ke^t continuously busy.
~

may make an
flexible as to

more

manufactured, but the

the product
economics

inte¬

an

Yv

Y (4) Automation

goods f uctuates accordingly. With
automation, the capital

—the capital investment—iruR

Quality

this

li^e to introduce

manufacture.

of

mechanization

sive

economics

as

inte¬

an

the productive

to

over

directed toward

Automation must

and

realistic

mined by the progress of the work
itself.
Thus, the machine
take

must be

grated business.

ahead.

lim¬
itation of engineering or the phvsical sciences as it will be by the

functions

Life of John Ericsson," William

Church

underway and if we are to reap

method

shall

It can

state of

are

living is t© be
research now

through

will be the real revolution of aubeyond the limits that tomation. To be efficient and efof
automation
imposed by the avail¬ fectiveY svstems

of

be determined not

devices

control the machines

it.

need

force,

added

American

we

economy

deter¬

the

standard of

improved

of

for

the

and

expand.

labor

our

do^ more than signal the

sensing

our

advantages

the

see

automation

tioning of the machines, but they

to
address

clearlv

I

economy

tion,

♦An

one

as

In. fact, with V* While automation is bringing
growing faster than about new and broader patterns
automation ap- tin the use of labor, it will also
pears to be necessary if we wish create a large group of managers
to keep improving our standard of a new type, men who will be
of living. In our economy, which the o'irectors of the new automad.epends for its expansion unon; tion traffic of materials, products
greater productivity, automation and marketing. Here in the work
seems essential to the continuation
of the administrators of business,

tinues
our

into the

act of aggression,

a

proc-

the introduction of more and

operator that something.is wrong.
In the next phase, of this evolu¬

an

(3) To be effective and efficient,
a

30

J

_

controlled
each step

certain ..that

sile

surely change the face of the

1

under the impact of auto¬

automation must be considered as

unem-

who for over
years has been engaged in re¬
search,
in
engineering and
in
bringing the products of research
and engineering into public use.
Eut

quanta.

If

information to each other step.

rarely

if used in

1

and

and feeds back control-we are'beginning to call automa-

with

acts

_

automation

or

_

beginning

^

its parts

steps forward, just as light in the
literal, physical sense comes in

com¬

steps of this whole

or more
ess

A

1_

tion when

-

lamination will have to penetrate
further as automation itself proand: evolves, The light: of
wisdom here will come in small

ma-

enter the area of automai
'
we begin to include two

1. *

intercontinental missile. This mis¬

will

industry and commerce will be
by the economics of
the enterprise as a whole and of
determined

been said
and
employ¬

automation

•

recognize that the future outlook

is

in

already

ployment. I do not possess the
wisdom to illuminate the subject
very far into the future. Our il-

materials, facilities and

raw

We
.

of

sources

to ,lift

as

about
ment

collecting-from the customer.

destruction.
world

with

tributions which speeded - the In"O ATtrtl Iti*

The

The rate of the movement

(2)

to automation and its effective use

mation.
has

Much

r

-

.

raw

The marketing of the

(3)

(4)
;

There is need for a clear
understanding so as to minimize

growth problems as these appear.

lighten transitional bur¬

1

our

tivity.

reasonableness Y

Future Expectations

natural

a

growing need to increase produc¬

gains.
?

is

developing circum¬
technology and the

under the

stances of

dens and insure maximum mutual

acceptance.

19th Century. He made many condfflpf Vinl

order to

the! labor, and ending with billing and

much of

gen¬

a

growth processes involved, in

complete

pleted articles, reflecting the com¬
petitive situation and customer

for

with

tackle

must

customer.

modes

mean

Management and labor

personnel.

teriais, partially manufactured articles,
and .completed
articles
through marketing channels to the

power

will

It

automation

to

ment

suredly, this will mean continual
re-alignment of

com-

'

of

transport

into automation are deep
our economy. This move¬

rooted in

training and

more

Y

Summary

adjustment> and

The

v(2) The

information

The factors which move in¬

(1)

upgrading of personnel. As¬

eral

into account the
from raw material

facilities and labor.

technol¬

our

environment of peace.

of

of1 Basically,

warheads

peo¬

for

education.

production of articles
of manufacture including the related elements of raw materials,

developments are bringing
profound changes in our

about

His

Through
instrumentalities
of
radio, television and electronics,
we

and

our

future.

tXtC

of

aspect

is

a

and

auto¬

operations and to permit ef¬
management decisions.

its

em-?

persons

many

also

will

It

fective

consumer.

(1)

facts

Yet, the instrumentalities of

actenzed John

and

concern,

it

taking

process

and

no

one

stated, an industrial
process
includes
among
other
steps, the following:

evolving

many

industry

have

electronic

system that feeds back
to control

as a

and

skills

im¬

great

data

dustry

Broadly

„

have fundamental contributions to

that during this month

significance

nations,

electronics

supremacy remains the same.
If
John Ericsson were alive today,
of

rapidly

deciding

to

mod¬

relationships between

and

ogy.

measures.

sure

is

dominant

weapons, protection, and counter-

1 feel

have need for many
John Ericssons.

ern

ter-measures
to it. This

whole

our

we

such

the basis of

on

system,

strength shall be a means to
keep the peacje. In accomplishing
this

of

with

deal

to

our

the weapon it¬

be

soon

mation

of

the1 use

improving

result from the character of

ployed to design, to build, to serv¬
ice, to control, and to make de¬
cisions. This will call for greater

£°!ltrny considera"
tl0T automation, we are
01 th subject ■
■In
beginning

every

effort to be first and

I

portance to everyone, I shall out¬
line several thoughts which have

f

carrier, and in
propulsion of

shall

automation

Because

shall

we

This will be

of

machines.

and

the opera¬

on

result

direct

ple who are themselves part of a
production machine. Instead, we

the master creators of systems of
automation.

automation,

data

current

business

longer have large groups of peo¬

that-he would be one of

sure

am

Revolution.

Industrial

Second

the

basically

With

>

-

reading of the story
Ericsson's life, I am sure

of John

surely be a deterrent or else a
political weapon against a party
lacking in missile strength.
'* ,.

weapon

constantly

my

will

task

tions of its business.

the whole of the
industrial process.
Its effect on
employment will depend in a fun¬
damental way on the qualifica¬
tions of the people to be employed.

that he would be at home in this

a

held

fects

product,

a

the Sec¬

Industrial Revolution.

ond

we are a part.
If
physical sense, but
as
a
threat, it will

used in

not

more

the coming of automation is
as

with

work

an

the

of the future
much improved

management

basically

were

advanced way of making

For this rea¬

sometimes referred to

automation

-

:

easier,

its

make

To

then an employment
problem might go hand-in-hand
with it. However, automation af¬

a

revolutionary.

son,

world of which

„

-If

just

machine, there is no
question but that electronic sys¬
tems have already surpassed hu¬
man
information handling capa¬
bilities.
Because of this, some of
the new concepts of automation
are

creative management.

and

and the extent of use.

can.

John Ericsson Award, Dr. Engstrom refers to
and possibilities of radio, televi¬
sion, electronics, nuclear reaction and automation.
Better
informed management is expected from use of electronic
machines. Automation is seen requiring, besides creative plan¬
ning and engineering: (1) upgrading of personnel; (2) new
type of managers and administrators; (3) increasing per
laborer investment; (4) labor and capital kept continuously
busy; (5) application to business as a whole and not just pro¬
duction, and (6) adjusting sales and marketing to fairly
constant production instead cf adjusting production to sales.

point to this re¬
need for a new

I

Rather

tion.

ing, which will define the areas
for automation, the rate of growth,

quantities than humans
Thus, while the intelligence of
the human being will never be su¬

perseded by

see

one

coupled of course, with
creative planning and engineer¬

mously greater speeds and accura¬
and,
therefore,
in
vastly

the world's technological race

I

not propose to

do

how this may be done or

factors,

enor¬

cies

America

Radio Corporation of

indicate just
just how
might best achieve such a
change-over in principle cf opera¬

I

and of the economics of
management of the enterprise.

process,

control func¬

and

humans.

>

and Engineering

Vice-President, Research

Senior Executive

of

tems

To Free Man from Routine
..

making

tions

economics of the marketing

of the

Automation deals with the de-r

f

largely the case in all but a few
manufacturing industries today.

the economics of the use of labor,

Revolution

Industrial

Second

,

1956

..Thursday, March 15,

.

contemplation cf all that

our

unfolding in scierce and engi¬
neering we need to keep in mind
the basic reasons why man was

is

created
We
uses

and placed

need
of

to

be

on

this earth.

certain

that

our

the results of science are

toward objective ends which are

Volume 183

Commercial and Financial Chronicle

Number 5516...The

(1319)
in

keeping with the divine

pose

for

this

so

be

that

free

self
of

lives.

cur

we

not

that

others.

the

few

a

science

of

science

become

that

man—so

tools

More

Advertising Dollars From
Higher Transmission Towers

continue to

may

men—so

will

tern

pur¬

We need to do

will

it¬

master

using the

r

enslave

not

men

the

are

fountain

sion towers in

heads of progress—their thoughts
light the pathway to the future.
This

was

—it

was

it is

so

But

than

more

the'creative

ever

economic

and produce

television

necessity

cost

topography.
generally

A

station

must

take

operator

tions."

To

broadcast

-antenna

vertising dollars.

must

more

tions

the

base

Television

advertising

number

of

sta¬

rates

sets

usual

get significantly greater
competing stations,
use a higher
tower and

Atlanta

on

because

much
its

more

antennas

-

With Dean Witter
(Special to The Financial
Chronicle)

1,052-foot

a

$700,000,

side by side instead
'stacked'
as
on
most
multi-station structures."

being

power.

with

Cedar Hill tower

new

placed

are

of

coverage than

he

The

about

than

channel

ar

number assigned by the FCC and
is equally limited in tower loca¬

advertising dollars.

more

of tali

in< towers was visualized by Robert
A.
Vaughan, Product -Manager;

instinct

power,

to increase reception

areas as v/ay

elaborate foundations and trickier
work.

STOCKTON, Calif.

"Ideco pioneered tall TV towers

The

during his lifetime—

today.

before,

sccpe

before John Ericsson

so

so

large market

largely determined by
heights,
transmitter
channel number mid local

antenna

Since advertising rates are based upon the sets
reached,
Dresser-Ideco engineering official prescribes higher transmis¬

,■■■.;

Creative

.is

3t

in

1951

structure
for

-

—

Henry F.

Sanderson is with Dean Witter &
Co., 16 North San Joaquin Street.

in

WSB-TV.

they

can- Since then the firm, the Colum¬
base; bus, 'Ohio, Division of Dresser
With Blalack Co.
of the func¬
advertising rates on circulation.
Industries, Inc., has built 11 more
(Special to The Financial Chronicle)
tions which is so ably performed
v "The
Dallas tower is a sample- of the steel
spires.
SAN
MARINO, Calif.—Douglas
by the American Society of Swed¬ Civil
Engineers. - Mr.
Vaughan ef-*- structures
"Tallest- of the current
ranging
upward
group
Keeney has joined Blalack & Co.„
ish Engineers.
from
pointed out that:'; - v
1,000 in height that have of TV towers is a 1,572-footer
2486 Huntington Drive.
:
As I look at this medal which
f "Television station operators are sprung up from Tampa, Fla., to used
b,y
KWTV
in
Oklahoma
you have so ger erously presented
Thirty-one City, h It stretches 51 feet higher
poking transmission towers higher Valley City, N. D.
to me, I feel both modest and
stations
now
broadcast
from than the
Smith, La Hue Adds
and higher into the air to push
tw^o-station Cedar Hill
humble—for I see reflected there
towers stretching more than 1,000 tower now
(Special to The Financial Chronicle)
their programs—and income-earn¬
being built, , and the
feet in height, according to the
the-countless contributions and
top of IiWTV's antenna is 100 feet
ST. PAUL, Minn. — Edgar F.
ing commercials—across wider re¬
Federal
achievements of John Erics~on,
Communications
Com¬ higher than the
tip of the TV Scheibel has been added to the
ception areas.

people needs to be encouraged and
nurtured.

This is

reach,

much

as

newspapers

Dresser-Ideco Company, in a talk
before the American- Society of

one

.

.

.

-

You

do

honor

to

him

time

each

"A
pair
of
Dallas
stations,
and bw KRLD-TV and
WFAA-TV, for
your actions you inspire ethers to
example, soon will be beaming
greater accomplishment.
programs
from
a
needle-like

this

award

you

medal,

1,521-foot tower

Palmer, Pollacchi A deb

Cedar

Hill,

v'..'* v-v-

(Special to The Financial Chrontcle)

BOSTON, Mass.

:

Cullen

is

Kenneth F.

—

connected

now

/

with

now

about

going

18

miles

their downtown studios.

tower,

second

in

nation,

the

Palmer, Pollacchi & Co., 84 Stats
Street.

The

at

from
new

highest structure
will add an esti¬

mated

TV

up

"To

Lester, Ryons

areas

(Special to The Financial Chronicle)

*

LOS

ANGELES, Calif.—W.

Calhoun

Ryons

is

&

with

now

Co.,

623

men,

generally

bigger
mean

reception
more

ad¬

more

of the tele¬

1,000-foot-plus towers.
Some of
applications
overlap,
and

the

others

may

the next
see

never

few

be

years

are

built, but
likely to

continued tall tower

a

build¬

ing boom.
"In

higher

•_

TV

Seven

casting
giants
are
under . con¬
struction,- and
the
FCC
has
applications for another 47 of the

85,000 TV sets to WFFApresent 490,COO-set reception

s

zone.

With

mission.-

casters.

large

towers

market

will

areas

of

for

A station's coverage pat¬

-

York's

staff of

Em¬

Actually,

towers

Tyoical

cost

$175,000

every
more

(Special to The Financial Chronicle)

KANSAS

building is

a costly
1,000-foot
towers
to $300,000,- fabri¬

estimate.

,

Allen Logan With
B. C. Christopher Co,

ff..--

"Tall tower

Smith, La Hue & Co., Pio¬
Building.

neer

reach

between

economy.

an

broad¬

tall

1,000
and
1,200 feet above the ground/That
height best combines'-'broadcast
signal coverage and construction

CITY, Mo.—Allen Lo¬

has

associated

gan

B. C.

Trade

become

with

Christopher & Co., Board of
Building, members of the

As

the
height New York Stock Exchange. Mr.
costs, because Logan was formerly Kansas City
added foot of height means representative for A. C.
Allyn &
steel,
bigger
and
more
Co., Inc.

increases,

necessity

New

building.

the

somewhere

cators

become

atop

State

most"

job.

most

economic

antennas

pire

so

do

Paul

Lester,
Hope

South

Street, members of the New York
Angeles Stock Exchangos.

and Los

;

.

King Merritt Adds

r

(Special to The Financial Chronicle)

LOS

t

ANGELES, Calif.—Ross AJ

Wood has been added to the staff
of

King Merritt & Co., Inc., 1151
South Broadway.
:
»

Four With B. C. Morton

♦

(Special to The Financial Chronicle)

LOS
W.

ANGELES, Calif.—Burnett

Burton,

drew

W.

Burtus

Johnson

Phillips

are

ton

Co.,

&

E.

Cox,

and

An¬

Orville

P.'

with B. C. Mor¬

now

1752

West

Adams

Boulevard.

With Shearson, Hamm'II
-*-■

(Special to The Financial Chronicle)

I LOS ANGELES, Calif.—John C.
Daniels and Dorsey R. Fick have
been added to the staff of Shear-

Hammill

son,

Grand

&

Avenue.

Co.,
Mr.

520

Sou'h

Daniels

1955

1954

1953

was

formerly with Sutro & Co.

.

$154,164,995

$149,472,568

$156,643,985

.

$111,265,102

$109,128,668

$112,836,072

72.17%

73.01%

72.03%

14,851,838

$ 17,793,534

$ 23,989,328

$ 24,851,281

$

$

3,943,448

20,907,833

With Federated Plans

v

(Social to The Financial Chronict ^

;

.

Buffkin

is

Federated

15,787,711

$

25,321,224

•

C.

ert

with

$

.

JACKSONVILLE, N. C.—Rob¬

:

$

3,783,103

connected

now

Plans,

Inc.,

of

$

.

/

Joins Abbott, Proctor

6.22

21,538,121

$ 20,132,570

$

$\

$

.

.

SHELBY,-

N. C.

—

Larry

H.

19,834,746

6.30

,

$

; 8.90

1,703,750

$

1,697,300

$

-

,

8.51

$

1,703,375

$

•

(Special to The Financial-Chronicle)

9.05'

$

"

:

3,856,758

6.69

Worcester, Mass.
-

$

18,428,820

$

19,210,533

'-

Moore has become associated with

Abbott,
Moore

Proctor

-

&

Paine.

& McKinnon and

son

ham

&

Mr.

Passengers Carried

Cole

has

been

added

3.00

6,306

5,672

Bache Add v

.

.

.

.

45,298

43,744

8,756,928

8,787,838

.0138

$

.

1,076,162

.

Mile

.

.

Average Number of Employees
Total All

Wages

Miles of Road

to

.

Revenue Per Passenger

Exchange.

46,922

.........

Passengers Carried One Mile (Thousands)

to

Joseph, Mellen & Mil¬

ler, Inc., Union Commerce Build¬
ing,
members
of
the
Midwest
Stock

$

9,347,679

_

....

Average Revenue Per Ton Mile

(Special to The Financial Chronicle)

the staff of

Freight Hauled (Thousands)

Revenue Ton Miles (Thousands)

CLEVELAND, Ohio—Mrs. Flor¬
F.

2,349,475

3.80

Co.
Tons of Revenue

ence

$

7,642

Harris, Up-

Joseph, Mellen Adds
:

2,365,057

;

4.75

$

.

previously with Thom¬

was

2,379,636

ir

Staff

.

.

.

.0265

.

500,413

.0266

$

.0275

15,309

16,402

71,146,762

$ 70,392,637

$ 72,889,512

4,064

$

(a) Taking accelerated amortization

450,142
$

.0148

1,206,164

15,270

.

.

$

.0142

,

1,079,244

471,709

$

.

4,064

4,078

....

Operated at End of Year

$
1

•

projects covered by Certificates of Necessity

on emergency

as

deductions

~

for Federal Income

(Special to The Financial Chronicle)
:

COLUMBUS, Ohio —Harold

Basbagill
with

has

Bache &

become

E.

The 1955 Report

affiliated

A copy-may

Street.

(Special to The Financial Chronicle)

SAN

of

Norfolk 10, Va.
'

as

follows:

Stock of the Earnings
Per Share Shown in

Year
1953

$ 4,280,000

1954

4,950,000

2.09

1955

•

Accruals

5,758,000

2.42

the

above Tabulation

$ 1-82

..

JOSE, Calif. —Edward M/

O'Connor
staff

'

taxes

Per Share of Common

Reductions in

Secretary,

Seaboard Air Line Railroad Company,
.

reduced the accruals for Federal Income

securityholders.

be obtained by writing to:

E. L. LASH, Jr.,

With E. F. Hutton

purposes

has been distributed to

Seaboard's stockholders and

Co., 30 East Broad

tax

has

E.

F.

been

added

Hutton

&

North First Street.




to

the

Co., 28

SEABOARD

AIR LINE

RAILROAD

COMPANY

v./

Financial Chronicle... Thursday, March 15, 1956

The Commercial and

32

(1320)
overly optimistic to forecast a bil¬
dollar billing by 1956.
These are impressive statistics,
to be sure. A realistic evaluation

Challenge oi the Electronic Age
HOFFMAN*

II. LESLIE

By

President, Hoffman

not

defining electronics and finding the industry is nearly as
as its scope is broad, the prominent California manu¬
facturer considers this an Electronic and not Atomic Age. The

number

succeeding home enter¬
tainment, and the advent of the dramatic electronic dataprocessing machine, is described. Mr. Hoffman visualizes as
outgrowth of the computer: (1) automation; (2) dynamic
management; (3) higher non-monotonous living standard, and
(4) increased coast-to-coast competition. Belief is expressed
growth of Government's purchases,

Los

Angeles

been

been

an

that

fact that 75%

didn't even exist a

people

scant 10 years ago.

in the
Atomic Age. I
living

now

are

we

of the jobs filled by

these

bomb was

first atom

con¬

exceed the nation.

at Hiroshima, there has
increasing tendency to say

dropped

will

V

t

Los Angeles Growth

in

likely

ever-

h i

w

gains

era

h

c

there

we

show any significant
present levels unless
is another war. On the other

hand, the biggest growth period
The
is lies ahead for electronics.
probable—applica¬
nothing more possiblei—and
nor
less than tions of electronics in the factory,
a
new
source in the office, in the home, and in

energy

of

energy

which

a c a-

demic research

H. L. Hofiman

harnessed

has

perience right
geles.
'

of our lives stagger the

all aspects

ggy

imagination.
At the present time, electronics
in the Los Angeles area accounts
for
a
substantially higher per¬

present, it appears that not more

to the

prosperity of New England
Total volume of sales

than 30,000 sets were sold at retail during the year. It is possible
that
we
may
have some
fairly substantial color output by
the latter part of 1956, but most
observers
agree
that not more
than "a
few, hundred
thousand

last

proximately

exceeding the
previous peak
in 1953 by 5%.
A

.

Market

the electronics indus¬

various

of

munications

types,

com¬

,

equipment and elec¬
for guns,

tronic control equipment

tanks, ships
and airplanes —in
fact, any type of equipment that
will

detect,
measure,
analyze,
compute, store, control or convey
information or intelligence.: The

still

area.

electronics has expanded faster in

Electronics

Angeles area than in the
nation as a whole—and is continu¬
the Los

Defined

Perhaps it would be well to at¬

than national
tempt some definition of what is gains.
During the past 5 years,
meant by electronics. It is a word
employment in the electrical ma¬
that has come into general usage
chinery, equipment and supplies
only within the last 15 years. A industry has expanded 177% in
simple definition would be to say the Los Angeles area, as compared
,

electronics

that

is

branch of

that

ing to show better

with

nationally. During the

32%

treats of the use, past year, the Los Angeles gain
properties of was 12%, the national was 6%.
electrons, especially in vacuum or
During 1953, 1954 and the first
gas
filled tubes.
Before World half of 1955, the capital invest¬
War II, control of the electron was ment in
new
electronics plants
almost entirely confined to radio and
expansions
announced
for
and
other
similar
applications. Los Angeles County totaled over
During World War II, however, $90 million.
This was a larger

which

physics

characteristics

and

the electron

harnessed in

was

sometimes awe¬
giving us radar,

and

many

new

some

ways

—

fire control, microwave and
finally made it possible to un¬
sonar,

lock the door to the secrets of

nu¬

nearly double the total for
the
aircraft
industry
and
it
amounted to 18.4% of the total

It

was

all

for

manufacturing

us

is

still

so

new

have

who

that

played

a

part in its growth hardly under¬
it at times.

stand

To

the

it could not help but be
addition

its

to

layman,
confusing.

more

familiar

products such as radio, television
sets and phonographs,
the elec¬
tronics industry also encompasses
variety of wireless communica¬

tions, detection and distance meas¬
uring equipment, computers, navi¬

gational aids, industrial aids, in¬
dustrial controls and

checking de¬
variety of other prod¬
which employ vacuum tubes

vices and

a

percent
firms

electronic

of the nation's
located in

are

Metropolitan
Los Angeles.
We
have 440 companies operating 502

elec¬

manufacture

which

plants

tronic equipment, components

and

companies have
total of 10 million

These

materials.
a

combined

feet of plant facilities and

square

employ 72,000 people with an an¬
nual industry payroll of over $294
million.
Approximately 75% of
the total electronics employment
in

entire

the

in

Los

West

is

located

broad. It
more

Electronics Committee of the Los

the

or

The

newer

solid

industry

nearly

state

at

devices.

present

is

diverse as its scope is
provides emplovment for
than 1% million Americans;
as

in

fact, one out of every 40 per¬
sons
employed today, or 2.7% of
our
working population, is em¬

ployed in the electronics industry.
Of even greater significance is the

Approximately

Angeles

estimated

lar

volume

address

School

of

Administration,

ogists have
prophesying

by

Mr.

Hoffman

Commerce

University

California.




before

and

Business

of

Southern

II and
ent

that

in

172

of
the

Commerce
1955

dol¬

industry will
million—more than

$916

our

industry prior to World War
more

than 14% of the pres¬

industry

sales.

and

made

dire effects on the
future of our country, the moral¬
ity of our citizens, the status of
our health,
the awareness of our
minds, the hope of our souls—all
as

:

result of TV.

a

TV

Radio, on the other hand, is
conspicuously
free
from

For

almost

on

first

the

front.

every

in

time

its

35-year

history, radio is no longer sub¬
ject to the criticisms of self-ap¬
pointed
analysts
who
forecast
doom

as

result of each forward

a

.

accounts

units; whatever the
;turn/ out to be, it
seems likely that 1957 will be the
first really big year for color TV.

television

busi¬
ness,
or
just
under $800
Gains

electronic

;

devices except

de-

fense

procurement, which at $2.4
billion,, was slightly below'!the
preceding year.
However, electronics probably increased slightly
lts share of major procurement
outlays, and the growing emphaadvanced weapons,

sis on

and

picture to the miracle of sound.
is
doing a stronger job
every day and society has at iast

a

Radio

a

to

only

We

do

come

Television

billmg
not

of

think

factory
we

arq

stature which

is

comparison

lusty
it is

but

from the wayward

to make
In

missiles,
defense
in-

early-warning

stallations suggests that prospects

many

child

try

our1 in¬

past nine years,

has

in

nearly

produced
receivers.

these

of

homes.

cry

than

more

Two

sets

of

out

Over
are

in

for

the

home

enter-

tainment products of our industry
last year was unprecedented, both
in television and in radio.

million

7.5

public,
value

sets

to

the

dollar

average

somewhat

was

Nearly

sold

were

their,

and

above

1954

reflecting slightly higher prices
and a tendency on the part of
the customer to prefer the more
costly large screen sets and console

models.

about

Production

mililon

7.7

to

came

units,

al-

and

though inventories at the close of
the year were

slightly higher than
preceding year, production

the

and sales

k^pt in good bal-

were

in the closing months so that

ance

industry-wide inventories
The

burdensome.

for

sets

home

not

are

business

radio

strong, thanks to

very

large

a

well

as

as

radios, and total production
about

to

came

units

million

14

million in 1954.
approaching the size of the

compared
Fast

10

to

radio business in terms of dollars
is the

rapidly growing market for

record players,

phonographs and
also

which

another

showed

in

increase

good

their

dials

TV

channel

to

on

and

off,

from
least 100

channel, at

Prospects
although
believe

will

pany,
we
that 1 out

are

of

extremelv

every

Television' itself
a

proud

7 TVf sets in

Southern California is

has

Hoffman.

a

been

such

spectacular invention that,many

have viewed it

as

an

entity of and

by itself and failed to consider it

Contiuued,

on

page

43

are

the

difficult

be

equal the 1955 figures.

military applications is an important one in which New England
manufacturers
are
well
repre-

equip-

communications

sented;

another.

Indications

ment

is

that

the- market ..for

electronic

are

industrial

hasbeen

equipment

....

?.y'VseT'

for

fm'

-

replacement

of

variety of industrial, commercial
and military operations, the electronics industry is going through
a
period of change in which the
emphasis is on technical ingenuity,
manufacturing adaptability,
and
entirely new concepts of
quality and design. Manufacturers
of component parts have been
called upon to meet demands for
new
types
of components and
standards of reliability that would
have seemed impossible a year or
so ago.
Although this is a diffiand expensive task, we rec¬

dations for the future growth of
business and that ot the
entire electronics industry,

our own

With Taussig, Day
(Special to The Financial

ST.

the

in

case

of radios,

sets

now

in

under 21 inch

use

account

for

as

are

Replacement may
much

one-third

as

of the sets to be sold in 1956,

range

and

total demand for blackshould

sets

—

street,

He was formerly
Waddell & Reed, Inc.
Exchange.

Stock
with

be

in

the

FWnc

o

14

P,.;™

K.

"•

*rlor vJPens

ALBUQUERQUE, N. Mex. —
Prior is engaging in a
securities business from offices at
4705 Southern Avenue, S. E. Mr.
Robert H.

Prior

was

previously with Quinn

& Co.

of 7.0-7.5 million units.

Another

factor

of

With Daniel Weston

long-range
'

importance to the
business
stantial

is

the

sales

growth of

outlook

of

color

production in

optimistic,

for
TV

sets.

Chronicle)

BEVERLY HILLS, Calif .—Clyde

subE.

Osborne

has become affiliated

with Daniel D. Weston &

Co., 140

to be

South Beverly Drive. He was pre-

although no

viously with California Investors.

1955 proved

and

(Special to The Financial

our

Most earlier estimates of color set

too

Chronicle)

Leonard H.

is now with Taussig,

Cramblet

while 49% of

picture size.

Mo.

Day & Co-> Inc-> 509 olive
me^bers 'f th'e Midwest

higher precentage in

the

in

LOUIS,

refrigerators

household

and an even

purposes,

two-thirds

to

1960.

by

to

1955 less than 25% 01 sets sold

were

size

In view of the rapid strides
being made in the application of
electronic principles to a wide

,

,

,

in

automatic control of manufacturmg Processes in a variety of industries, this growth should be of
continuing importance to New
England and to the entire electronics industry. In 1956 the outlook is for another good gain in
the
million business in mdustrial electronics, and a return
of military electronics procurement to aV least the $2.5 billion
level also seems probable,

The grow¬

St^7hn^ntptg0FdnrV^en,0.
Y/

double

may

Closely associated as it is with the

ing replacement market for tele¬
vision will be an important factor

and-white

com¬

in

many

I believe

own

entergood,
industry

the home

for

it

and

our

control

and

commercial and

ognize that it is a challenge we
must meet in laying sound foun-

Outlook

tainment market in 1956

million times daily between 8 a.m.

midnight. In

The field

growth.

both

devices for

cult

1955.

1956

case

families in the United States turn

their

of

instrumentation

r

Demand

35

million
every
three

of

good for an increase in funds
allocated to electronics in the near

compared

32

much

future.

40
use

England,

growing at the rate of 20% per
year for the past several years,
and recent estimates suggest that

are

m

million' TV

today

far

a

it.

the

dustry

maturity.
infant by

with

a

seems

elec¬

500

New

military and industrial markets
that have been responsible for so

Sprague

.

tor

than

in

particular interest attaches to the
Robert c.

all the major markets

in

Electronics

more

firms

tronics

were

recorded

the

For

million in '55.

is

merely a sup¬
plement to radio—the addition of

awarded it

may*.

Industrial

electronics in¬

auto

now

criticism

million

1.5

figure

dustry's

was

&

sur-

indicates
that New Eng¬

market

Radio

double that of the entire national
radio

*Aa

the

Chamber

has

exceed

psychol¬
headlines by

Sociologists

million

Angeles.

types
of
electronic
and
related
products
are manufactured here.
Although
no official figures exist as to the
combined
industry
billing, the

ucts

hap¬

cussions at the national and local

level.

for

step in advancement of progress.

combined.
Twelve

of

has

what

Because TV admittedly is

changing American life, it has be¬
come the object of countless dis¬

Yet

Electronics
those

a

industries

fission.

clear

In

other industry.

total than for any

wondering

pened.

units will be produced. Estimates
1957 range from 500,000 to

v

for 14% of the

—

geles

recent

/

vey

electronics.
Instead, I
think this dynamic period which centage of the national total in battle for superior weapons has
this field than in manufacturing as
become a battle in electronics,
f
has been created out of the genius
a whole.
Unofficially, we rank in
of our present and future tech¬
Home TV .v-..second
place nationally in the
nological development must and
of electronic equip¬
Electronics had its beginning in
will be called the Electronic Age. production
ment, exclusive of radio and tele¬ the home entertainment industry.
We have gone through a variety
vision. This is the guided missile Radio and television today
are
of dynamic eras here in Southern
and
electronic computer
head¬ second in importance only to mil¬
California
beginning with the
quarters for the country.
Even itary electronics.
There is no
gold rush and including such di¬ more
significant is the fact that question but that one of the big¬
verse elements
as the real estate
the Los Angeles area probably is
promoters,
the health
faddists, in second place nationally as a gest, most dynamic, most power¬
ful forces in American life today
motion pictures and aircraft man¬
center of electronic research and
is television. The impact of tele¬
ufacturing. Today, electronics is
development. This offers particu¬ vision in this country has been
the rising contender as the eco¬
lar encouragement for the future.
so
massive
that
Americans are
nomic supporter of the Los An¬
There can be little doubt that

through

year.

$5.4 billion at
factory prices,

services includes
radar

substantial

roseto ap¬

Production for the military
guided missiles,

try.

at

contribution

present

market for

* i

a

time, the gov¬
provides* the
largest

the

At

.

available

are

made

land

ernment

now

-

Los An¬

here in

Government

to

over

Atomic

live.

^

growth rate,

electronlcjF'industry again official figures

The

and ex¬

market for their training

.

changing

has

abundance of engineer¬

our

Electronic indus¬
20% per year, expected to
be double that figure by 1960.

anticipated reaching 7 to 7.5 million units.
trial equipment

There was a time
when graduates from universities
here on the West Coast had to go
East to earn a living.
Of course,
this
is no longer true.
At the
present time, we have the highest
engineering population per capita
of any area in the United States
and
engineering
and scientific
graduates from Cal Tech, UCLA
and here at USC find a waiting

;

Here in Los Angeles, electronics
challenge the
accuracy
of gives'"promise of becoming the
this name for largest industry in the area—even
the exciting surpassing aircraft, which is un¬
and

out¬

ing know-how.

largest industry in

as

and that West Coast rate of gain

area,

tinue to
Since the

aircraft

surpass

con¬

certainly,

important,

most

termed good

by Mr. Sprague aided by first big year for color sets and cred¬
itable assist from TV replacement demand. Total demand is

standing growth of the electronics
industry in this area. One of the

an

electronics will

how¬

plants or industry volume,
ever.
Many factors have
tributed materially to
the

diverse

Home entertainment 1956 market prospects are

of

size

workers,

of

Sprague Electric Company

recording

possible merely by

the

Chairman of the Board and Treasurer

is

industry

Outlook

By ROBERT C. SPRAGUE

of

potential

electronics

local

our

and

growth

the

of

Electronics Corporation

In

that

Electronic Industry's

lion

.

Volume 183

...

■

.

..o w-»-

|;|uh| .

33

(1321)

Number 5516... The Commercial and Financial Chronicle

New York

^

Security Dealers Association

m *
'v-w:

J.

Rankin O'Rourke, Ira Haupt & Co.; John J. O'Kane, Jr., John J. O'Kane,
Manufacturers Trust Co.; Carl H. Oelkers, Manufacturers Trust Co.;

Guaranty

Edwin L.

Harry

Trust Company

of New

Beck, "Commercial & Financial Chronicle"; Robert C. Otto,
Chemical Corn Exchange Bank

R.

Jr. & Co.; John Nugent,
J. Vincent O'Reilly,

"Old

Maurice

Hart,

New

Stein Bros & Boyce,

Troster, Troster, Singer & Co.; Meyer Willett; Howard S. Hoit,
Howard Hamershlag, Hamershlag, Borg & Co.; Eugene Statter,
Hoit,

Rose &

Company

Morris, David Morris & Co.; George E. Rieber, Secretary District No. 13,
Dealers
(New York); John J. O'Kane, Jr., John J. O'Kane, Jr.

Securities

American Stock Exchange; Allen

York Hanseatic Corporation;
Charles Bodie,
Baltimore; Sam Green, Pledger & Company, Inc.,
Los Angeles

Amott, Amott, Baker & Co. Incorporated; Eugene G. Statter, Hoit, Rose & Company;
Zeckendorf, Webb & Knapp, Inc.; Frank Dunne, Dunne & Co.; Clarence H. Adams,
Securities & Exchange Commission, Washington, D. C.

Timer's Group"—Col. Oliver J.

of

McCormick,

William

Hoit,
 Rose & Company;


David

York

James

T.

Glavin,

Securities

Louis

Goldstein, Chairman of the Board, Trust Company
North

of North

Trust Company of

America

Commission, New York; James R. 9yer». American
National Association of Securities Dealers, Washington, D.
Unterberg, C. E. Unterberg Towbin Co.

& Exchange

Clarence

National Association
Edward T.

& Co.;
Riter & Co.

America; Charles D. Runyan, President,

Exchange; Wallace H. Fulton,

Rudolf Smutny,
New

E.

J. Nix,

Stock

C.

E.

Salomon Bros. <ft Hutzler; William Zeckendorf, Webb & Knapp, Inc.; Edward C. Gray,
York Stock Exchange; Edward T. McCormick, American Stock Exchange

wVirtiAvfrtf.

34

rtiWSI."

The Commercial and Financial Chronicle... Thursday,

(1322)

March 15, 1956

30th Annual Dinner

Bert

Pike,

Troster, Singer & Co.; Wilfred Day, Chas. A. Day & Co., Inc., Boston;
Flore, Forgan <8 Co.; Walter Filkins, Troster, Singer & Co.

Fred

Bock, John J. O'Kane, Jr. & Co.; Edward J. Enrigfit, Executive
Secretary of New York Security Dealers Association; Fritz (Red)
Johnson, John J. O'Kane, Jr. <6 Co.

Adrian

J. William

Vincent

Shea,

A.

G.

Edwards & Sons; Sam

Rose

&

Company;

George J. Springer, Hodson & Company, Inc.; Charles H. Dowd,
Hodson & Company, Inc.; Robert M. Topol, Greene and Company;
Neal Mallin, Frank Kiernan <8 Co.

Frankel, Ungerleider <8 Company; Edward A. Kole
(guest); Hanns E. Kuehner
Joyce, Kuehner <8 Co.; John Vogrin, Benjamin, Hi'.l & Co.

Kumm, Coggeshall & Hick*; Murray Hanson,

D. C.: Jim Mundv, Stroud & Company, Incorporated,


George Sozek,

Investment Bankers Association, Washington,
Philadelphia; Reg. Knapp, Wertheim <8 Co.

Abner

Goldstone

Edward

Weinberg <8 Co.; Charles
Stryker, Mocre, Leonard & Lynch

Weinberg, S.
V.

Clausen, Hoit,

Ted Young, New York Hanseatic Corporation; Charlie Lye, Francis
I. du Pont & Co.; Dunbar Abele, Reed, Lear <8 Co.;
John D. Ohlandt, Jr., New York Hanseatic Corporation

(guest); Louis Walker National Quotation Bureau; Paul Rowen, Securities
Commission, Washington, D. C.; Nat Krumholz, Siegel & Co.

Exchange

Irving Greene, Greene and Company; Frank Cestaro, L. F. Rothschild & Co.; Arthur Weigner,
Lehman RrntkorsMilton Pauley, Troster,
Singer & Co.

&

Number 5516

Volume 183

...

am)

The Commercial and financial Chronicte

38

At the Biltmore Hotel

Harry

D.

R.

Horner

M.

Casper,
&

John J. O'Kane, Jr. & Co.; R. M. Horner, R. M. Horner & Co.; Reid
Co.; John J. Kelly, National Association of Securities Dealers; Wallace
Hemphill, Noyes & Co., Philadelphia

Rankin,
Runyan,

Frank

Harrington, H. D. Knox & Co., Inc.,

H.

Knox,

D.

H. D.

Boston; Roy Larson, H. D. Knox <ft Co., Inc., New

Knox & Co., Inc., New York; Jim Durnin, H. D. Knox &
Edward Schaefer, H. D. Knox & Co., Inc., New York

York;

Co., Inc., New York;

JBBWMB|^
innpimnnnnnn^rrn'rir' in

in i

Mgjffi

^

cf3Qoo»jfl...in.
-

-

•

^ocidoocdjc ::

Sheldon

Julius

Green, Chase Manhattan Bank; Elbridge H. Smith,
Stryker & Brown

Golden,

Greene

and

Oliver
New

J.

Troster,

York

Stock

Company; William Friedman, Newborg & Co.; Libby Palermo,
David Wittman, A. M. Krensby & Co., Inc., New York

and Company;




Col.

Troster, Singer & Co.; Edward C.
Exchange; John R. Dunne (guest)

Greene

Arthur

Gray,

William Frankel, Wm V. Frankel & Co.,
H. Hentz & Co.; Ralph De Pasquale,

Queren, Chemical Corn Exchange Bank; Herbert Singer,
George E. Price (guest); Joseph G. Connolly

Incorporated; Charles Weil,
General Investing Corp.

Singer, Bean & Mackie, Inc.;
(guest)

36

(1324)

The Commercial and Financial Chronicle

Attended

Charles
New

Weil, H.

York

Thursday, March 15, 1956

by 525 Members and Guests

Hentz

Hanseatic

...

& Co.; Frank J. Ronan, New York Hanseatic Corporation; Aaron
Netburn,
Corporation; Floyd D. Cerf, Jr., Floyd D. Cerf, Jr. Company, Incorporatedr
Chicago; Hans Ben, New York Hanseatic Corporation

Shelby Culiom Davis, Shelby Cullom Davis & Co.; John R. O'Neill, General Investing Corp.; Thomas
J. Cahill, Chase Manhattan Bank; Tom Brown, Hoit, Rose &
Company; Lester Gannon,
Peter Morgan & Co.

'% W'^W

John D. Ohlandt,
Jr., New York Hanseatic Corporation; John F.
Reilly, J. F. Reilly & Co. Inc.; Phil Clark, Burnham and
Company

J. C.

Blockley, Harris, Upham & Co.; Abe Strauss, Strauss, Ginberg
Co., Inc.; "Duke" Hunter, Wellington Hunter Associates,

&

a

V^rJ7hf(her!ttnr
& Co.;

Josephthal

i,Gr?S! 1?
n; "ern}an Frankel, Singer,
Schneider, Burnham and

Michael

Charles Schaumburger, Jacques Coe

Conn.; Martin A. Fendel,


Company;

Bean & Machie, Inc.; Hank Serlen,
Philip

Clark, Burnham

George

Geyer, Blair & Co. Incorporated; John McLaughlin,
McLaughlin, Cryan & Co.; Joseph H. Billings, Cowen A Co.

City, N. J.

and

Company

A Co.; A. Maurits Johnson, G. H. Walker A Co., Bridgeport
Jacques Coe A Co.; Peter Barken, Peter Barken Co.

Joe

Carucci, J. K. Rice, Jr. & Co.; Joe Malavet, Bache & Co.; Charles M. Kaiser, Grady,
& Co., Inc.; Guy De Simone, Security Adjustment
Corporation, Brooklyn

Henry Kahn, Ernst

A Co.; Sydney Holtzman, Joseph McManus A Co.; Arthur
A Co.; Gene Stark, Brans, Nordtman A Co.; Mel
Wien, M. S. Wisn A Co.,

Vare,

Kalk,

Berwald

Voorhis

Jereey City, N. J.

Volume 183

Number 5516...The Commercial and
Financial Chronicle

37

(1325)

Continued from first page

electronics would take

should further increase the
usage

Then, engineers design the

that

of

duction

unemployment would occur
the telephone
industry—that

in

probably

would

place, they

have

said

mass

Automation—Robust Robot

in

night

and

the

perhaps

listeners

in

that's

Detroit

monly be supposed. And here
must make

got off

beam

somewhat, so to speak.
probably envisioned being
engulfed — much like the comic
figures in cartoons—by man-eat¬

defining

They

jobs left and

case,

because while

"Automation

automation
the

most

in

action

clear

automation

cut

that

we

—

find

up

together in the last 35

phone

Telegraph

to¬

today,
some

electronics,
made
35

reached

later,

years

the

point

we

all

dial-operated.
calls

areas

made

can

be

Some

outside

dialed

by

of

phoning
—not

was

really mechanization

automation

as

might

com-

customer!

employed

the

end

were

so

of

as

August

to

the

main

and

these

cir¬

are

That's

and

prophets

facts of the past provide the Best
clue to the future.

Technological

changes in

business will '< con¬
tinue. They will make
telephone

automation

of

gloom

our

service better, will widen its scope
will

able.

in

selling,

keep

the

Coupled

which

program,

price

with

is

such

a

reason¬

aggressive
part

of

our

developments

HOUSEHOLD FINANCE
*

fSTAHISHED

I 878

1955
Offices at Year-end

738

during Year

Amount of Loans made

during Year
(Canadian dollars included at par)

Average Size of Loans when

2,111,645
...

made....

Customer Notes Receivable at Year-end

$770,776,265
$365

$451,922,903

Number of Customer Notes Receivable at Year-end

1,494,799

Average Unpaid Balance

$302

per

Loan..

Net Income

$16,877,670
Common Share

outstanding at Year-end

Dividends per Common Share

the

can

see

capable
on

These

complex
handling

of

totally automatic

a

machines

must

be

a specific purpose
deviation means cost—

any

big cost—if the entire production

ent

line

see nothing in the
pres¬
picture which should change

this

trend."

company.
some

I want how to dis¬

effects

which

automa¬

may have on the business
community as a whole. To do
this, we must first regard auto¬
as a
methodology. Natur¬
ally, it has strengths and limita¬

tions.

These

we

must

out

of

highlight approach must be

automa¬
tion may mean for the future of
his

thrown

kilter

and

machinery installed to meet
rapidly changing conditions.
This means, then, a totally new

Automation Effects

Mr. Phalen's remarks
broad concepts of what

is

new

i

businessman

know

er

taken

the

the

by

future.

responsibilities

ment's

And,

on

shoulders.

manage¬

Management

can't engage in guesswork in de¬

termining what market exists for
its

product.

It

may

even

mean

that markets will actually have to
be created by the
company first.

if

Let's

of

of course, it's going to place great¬

Once

and

telephone people, because, yesterday

responsible management will work

and

the

for

you

management
certain

has

patterns

estab¬

and

for¬

for

harmonizing market
production, then we will have

compare the factory of
or today with the fac¬ arrived at one of the great future
contribute, tory of the future. For the most benefits of automation. With an
even more to the
company's fu¬ part, current assembly procedures assured market, the automated
ture operations, with it will
come, are so designed that if the mar¬ factory will have guaranteed pro¬
also, certain problems. But those ket for the end product
declines, duction for a set period of time.
are
problems that an alert and then production can be cutback This means
employment stabili¬
for the

Highlights of the 1955 ANNUAL




basis.

mulae

more

losses

think

tailor-made for

and treat it wisely.

available to

and

Another year of steady growth for

Common Shares

functions

lished

superior!

far

A

Net Income per

machinery

we're to comprehend automation

technically

I

deviations

estimate would

while automation will

1920 foreseen that this miracle of

Number of Loans made

mar¬

tremendous

pro¬

market

this stems from the great
expense
involved
in
installing

mation

yet

people.
But the challenge is still there

Unemployment Fears

Number of Branch

increasing

tion

more

you!

Had

of

spell

market

company.

exact

Wide

the

considerable extent,
employment in the in¬
dustry has more than doubled.
Not
only has employment, in¬
creased, but the telephone t'pday

fed

the calls

Initially, the switch to dial tele-

one

specifications.

to

ments. We

employed."

occurred

through machines that ac¬
tually print the bill that goes to
the

been

cuss

and

re¬

for

has

There's the proof. Automation has

later

cus¬

probably also be fluctuations
in
employment.
However,
the
longterm trend in our business

tele¬

are

cord

local

the

dial

no

were

At

1955, 237,000

recent years
more and

counting—punches tapes that

of

tomer.

last

say

already overloaded* At out, as it has in the past. As Mr.
the same time, a machine known
Phalen said in his
concluding re¬
as
AMA—automatic message ac¬ marks to
Congress, "I think the

about

25%

more

alternate routes if

85% of all Bell System telephones
are

were

228,000

operators.

equipment. The
telephone call can now be
electrically routed through switch¬
ing centers, or send itself over

Now,
have

where

there

1954,

dialed

cuits

to

115,000 persons were in
employ of the Bell System as
telephone operators. At the end of

electronic

more

this

a

the

through introduction of

Company

will

phones,

or

personnel and
will try to minimize. In
as
in the past, there

future

process

from

is

automation in

years.

this possible.

one

had

before

when

get back to the telephone,
however, mechanization led to

it is called

as

of

To

operated telephones. The practical
of

processes

this—

Washington com¬
mittee, "At the beginning of 1920,

operation.

first began converting to dial
sys¬
tems to replace the old "central"
which was the hub of
manually
use

and

say

we

on

W.

Company,

adjusting process, which is not
present in a purely mechanized

1920, the American Tele¬
and

domain

cynics did

these

effects

Phalen, President of kets, increasing job opportunities
Michigan
Bell
Telephone and substantial capital invest¬

year

or

day. Automation, through wide
application of electronics, and the
telephone have practically grown
Back in

of the

the

self-controlling

perhaps
example of

can

proposal cir¬

is "that

use

Clifton

of machines to run machines* In
other words, in automation
should
be found a sort of

example of

you an

the

following in various
degrees; feedback control, pro¬
gramming, versatility, and inte¬
gration." Or, it may be described
somewhat superficially as the use

Automation in Practice

give

a

of

nobody could af¬
the telephone. In
fact,

they are still saying it to¬
day. But, let's look at the facts.

important point by
One

so

and

of the

more

contribute substantially to our

me

we

activity which adds to the mech¬
anisms

automa¬

civilization.

Let

ford to

vision Manufacturers Association:

tion may be
portrayed as a robot
—it's a robust robot that's
going
to

the

any

,

culated for approval
among mem¬
bers of the Radio-Electronic-Tele¬

ing machines that destroy the in¬
dividual's dignity and livelihood.
Such, certainly, is not going to be
the

an

automation.

best is included in

usage that creates jobs. There
will probably be some scattered

adverse

some

where

service, and it is increase

machines would do all the
work,
but that there wouldn't be

And Growth of Electronics
radio

the

$2.19

on

7,169,517 shares

$1.20

Serving millions of people since 1878

...

to meet the lessened demand. Cer¬

zation. Having reached this

tainly, this imposes hardships for

—a

personnel involved

of

as

well

as

for

management and stockholders. At

least,

though, there

is

absorb

safety

a

valve—the production line
slowed down or speeded

can

be

up

known

force—then

plans

market fluctuations.

To

a

of

one

factory. The market must

our

an

positively established and its

future

course

fixed

labor

corporate investment

brought to

are

stage
known rate

an even

keel.

capital will be eliminated, which,

auto¬

be

a
a

Wide fluctuations in demands for

be

mated

and

to

great extent, however, this would

virtually impossible in

market,

production

accurately plotted.

of

course,

will tend to regularize

of the most sensitive
entire

economy.

areas

The

of

raising

capital, in other words, will not

Continued

on

page

38

Chronicle... Thursday, March 16, 1956

Commercial and Financial

The
38

(1326)

Continued

the discoveries of science capture

from jpage 37

provoked many of the prophets
spreading stories about auto¬
mation
sweeping
the
country

be dependent on, or contribute
boom or bust cycles.

business is

which

today cer¬

run

the

rank

Weiner

of

"Even if we consider

these pro¬

file.

duction estimates to be

optimistic,

Norbert

projected growth and the
serving of vast new markets for
our products will require a much
greater effectiveness in our use of

stated that automation will mean

That

of human beings."

use

machines will in the
the drudgery that

is,

labor."

future perform

must

achieve

this

workers

will necessarily have

be

now

than

proficient

more

state

happier

now—

as

Dr. E. W. Engstrom

Corporation of America has given
us further insight into the qualifi¬
cations of tomorrow's worker. He
has stated that the concept of the

automatic factory

completely

"leads to the idea of a very large

black box into which flow a great
many

varieties of raw materials

and

large volume of automatic¬

a

ally handled data. Both the raw
data

and the

materials

are

proc¬

'untouched
by
human
hands,' so that the right amounts
of the right products are distri¬
buted to the right places at the

essed,

be

country's Gross National Product
me that automation through¬

industry is to keep pace
dicted

black

How

in

no

there

appear to us to be
developments in the
on a virtual day-

may

sensational

processing the product. Some will
be the technical maintenance men

been

who will keep

the machines ope¬

rating. Others will design and in¬
stall new machines to take care of

changing product. There will

who will no
production of the
given product, but in¬

production

men

longer schedule

parts of a

stead will service the programs

With

machines in accordance

of

man¬

will be
who will
and who,
when necessary, will develop and
design new automatic machinery
or modify existing machinery for
making those new products."
The need for greater technical
training is thus apparent. This, in
turn, leads to the belief that our

agement decision... There

engineers and stylists
develop new products

educational

and on-the-

systems

job training in industry will un¬

considerable changes and
growth in the decades to come.

dergo

now

Necessity
one

go

Automation is not
but

simply aren't enough engineers to
sufficient man hours to
tackling all its different ramifica¬

a

necessity. If

must.

because

shortage.

It

He

this

had

equipment alone will be justi¬
fied by the end result. For ex¬
in

ample,
the

offered recently

Electric Company.
say, "Using the

to

sales in the electronic field
the
year
1960. This report

(published in April 1954) forecast
total increase in industry vol¬
ume
of 82% over the base year
a

growth figure when

favorable
compared to

estimates of increase

in the gross

(1953).

telephone

the

of

com¬

panies, they have been working
for

automation

toward

about

35

First, through mechanized

years.

steps, and more recently

through

application of advanced electronic
developments. Yet, the telephone
business is still far removed from
total automation after all these
years.

The rate of movement

into auto¬

to a large extent,
economic factors for

mation depends,

certain

has

there

been

is

1953 as a base, the Stanford
Research Institute prepared an es¬
timate of the annual value of fac¬
for

have mentioned in

we

as

case

still

our economy

convinced

be

must

tremendous investment

that

also

that

year

tory

move

convenience,

by Mr. Robert C. Sprague, Chair¬
man
of the Board and Treasurer
of the Sprague

management

result,

a

slowly into this area
of
current
manpower

must

total

really
long

a

way

off,

ably far
there

will be

here

and

lines

in

automation is
off—unpredict¬
fact. Certainly

specialized
enough to be al¬

there—in

ready tailor-made for
the

prece¬

automatic factories

fortunate

—in the

no

believe, then,

dent. It leads us to

and produce more and
services, automation is a
Illuminating
remarks
on

this subject were

As

tions.

which

grow

better

so

complex that we realize now there

step further.

a

battle

Automation is

won.

devote

on

A

automation

the

mean

has

connection

direct

automation

quite near future. In fact,

Navy's Bureau of Aeronautics
about

announced

that

two

years

ago

Tinkertoy—which
mechanize completely

Project

sought

to

with
success.
This
mean,
though, that all

doesn't

electronic

manufacture

can

now

This is a very

for this same
period and which vary
between 14%
and 20%. At the
same time, we must look
at the
national

product

seven-year

probable

growth

in




the

labor

Automation

will

be

governed

the
a

technological
by

.

our

ad¬
scientists,

point that has been

largely overlooked by casual ob¬
servers. Unfortunately, in a way,

.

.

.

unrefrigerated

indef¬

stay fresh

will

that

robot cooks producing
meals to order
automatic dish¬

initely

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

machines,

Not

elec¬ planters, reapers, and other farm
there'll be human
with automation. It machinery

If

industrial advances

tronics

.

grow

just stands to reason that to de¬
velop
machines that automati¬

analyze, and com¬
a myriad of industrial
will necessarily have
development and ap¬
electronic know-how.

cally monitor,

pensate for
uses, there
great

to be

plication of

its real

name—technological

connotation in the minds of many.
But for a subject as complex as

hardly

is

fair.

far beyond just the
production line. Its uses
are many, its effects far-reaching,
and it's much too important to
have
obstructionists delay it.
There will be enough economic
and technical
roadblocks in its
mation

goes

factory

path. We shouldn't provide other
hindrances, since automation is go¬
ing to be needed to keep our
country great and strong in the

"Petrochemicals

.

man-

.

the earth

.

built-in conveniences

.

.

.

.

plastic

boxcars

Continued from

future such

admire the
for
be

complexities of it and,

captains of industry, there will
the solemn reminder that the
a

future rests

squarely with them. Let us be re¬
minded

that

automation

will

be

new ma¬

.

bodies

probably going to help mold our

longwearing, stain-resistant fabrics ...

.

a

vitally
necessary — and equally complex.
It's not just a fancy word. It's

for auto and plane

terials

foresee

described

have

I

achievement of such

.

will furnish

.

.

.

inexpensive, pre-f abricated houses,
complete with wiring, plumbing,
weather conditioning, and other

.

.

first

.

tremendously important

way

—

of life and the lives of gen¬

erations

to

follow.

page

We
See

As

There

are

optimists,

some

you

say that automation
enable us to balance
national budget, or at least

who

know,
may

even

give the Republicans and

Senator

helping hand. You may
have read an article recently in
"Newsweek " magazine called
"Electronic 'eggheads'It points
out that these eggheads — notice

Byrd

It

a

will, the use of this some¬
what derogatory term for automa¬
tion — these eggheads are already
used widely by government
agencies. Machines serve as pay¬
masters, census expediters, tax
collectors,
statisticians, weather
forecasters, in a myrian of de¬
activities, and so on down

fense

the line. This means,

tional

according to

Alexander of the Na¬

Dr. Samuel

of Standards,

Bureau

that

"jobs that are now completely
ignored will get done." He adds
that automation, "May be the way
keep the Federal

Government

growing in direct proportion
growth of the country."

to the

Glowing Future of 1975
And

how

is

our

country going

in this great era of auto¬
compilation of prophe¬

to grow

mation? A

out by the American Pe¬
Institute may give some

indication

(and I quote).

"Specialists
.

.

.

say

the

that in the year
of the

population

opportunity for the politicians

worry

about the real issues which ought to be involved.

Now, it

may

well be, in fact

lieve that it would

be,

we are

much inclined to be¬

fact that not

a

very

much atten¬

tion to basic issues would have characterized the

political

doings this year in any event. Certainly the opposition
has had rather hard

thing that

was

execution

and

going to dissent

being done in the

how

seems

policy. Hence the frequent
"selling out" to big business and the

to

smoothed the

without

giving

much from any¬

of the formulation

national

of

resort to talk about

like. Still it

very

way

unfortunate that fate has some¬

us

way

of those who would seek office

very

any

be returned victor in the

good reason why they should
voting.

United?
One would suppose

from what the politicians of both

persuasions (or better still of both labels) are saying and
have for

a

long while been saying, that this country was

united behind the basic

philosophy of the New Deal, the

Fair Deal and the program
tion. Yet
There
never

or

are

many

members of the Democratic party who

of what Franklin Roosevelt was doing

Harry Truman later undertook to do.

They, or

of them, were bound to the party with ties stronger

than their

of

of the Eisenhower Administra¬
truth.

feel certain that such is indeed not the

did approve

what

many

we

course,

personal preferences

as

to national policy, and,

they in the later years of his regime, were

offered little in the way

of alternatives. The Republican

party had been largely taken over by
There

certainly

are, or were

the New Deal wing.

before the personal popu¬

in the Re¬
of a great deal
their party had come to stand for and which the present
Administration has now made its own. The so-called Taft

larity of "Ike" waved its magic wand, many

publican party who doubted the wisdom

will be 207 million

(105 million will be women, still
outnumbering men by a slight

margin).
"We will be

excellent

an

through the coming campaigns with a minimum of

to go

if you

from

such

offers

ahead.

years

to

control

weather

and

fear.

can

already mentioned that auto¬

I've

the

.

.

speed, sending back ra¬
essential
medical and scientific research

to

automation
quietly if we called

this

hour

per

TV information

and

we

here, then I
think we will all understand just
what automation is about. We'll
as

speeds of

at terrific

dio

progress. I
with what

automation,

miles

2,500

with

.

made satellites circling

suggested by some

been

.

travel in rocket ships at

that perhaps

could grow up
it by

milking

high-speed

United States, so will

in the

1976

made

of

.

.

.

.

United States

by

pav¬

.

.

.

.

than

vances

and dusters

foods

.

by economics, probably even more

and this is

ers

..

troleum
Economic Limitations

.

1976. We'll have electronic clean¬

in¬

.

.

housewife

the

for

.

...

household

more

no

.

that

third World War,
long enough, would

.

cies put

be automized.

"And

higher
.

vitamin pills

.

..

drudgery

hours for study, travel,

.

electronic manufacture—had been

completed

fer¬

indus¬

.

-

play

think this fits in well
I have already said.
Hasn't automation
in the tele¬
phone business really been tech¬
years, ten years?
nological progress? Now then, no¬
It's pretty obvious that manage¬
body seems scared of making
ment will move slowly into the
progress. Yet, automation, has,
realm of automation—even though
somehow or other acquired a bad

Will it come virtually
overnight, as those Detroit radio
listeners possibly thought? Five

not

to

a

reality?

with

Let's

is

industry

an

..

.

World War
wear
and temperature regu¬ more powerful engines, using new
II brought the electronics indus¬
planes will
lating garments for summertime and improved fuels
try on with a rush through the
take off and land under control of
transoceanic programs
.
tremendous demand for radar and
automatic pilots
new medical
and three-dimensional TV pro¬
technologies associated with it. In
discoveries
will
enable
women
war
or peace,
though, there are jected in color from a flat panel
within your living room wall.
(and men) to remain younger
good growth prospects ahead for
"We'll have 100% rural electri¬ looking, more handsome... there'll
the electronics industry through
fication
the Dust Bowl elimi¬ be a wider knowledge of the stars,
increased automation. And by this
nated
even more fas¬
agricultural yield up the galaxies
I mean the prospects for sustained
15-20% an acre
tastier, higher cinating things, more wonderful
growth as industrial and military
quality foods
new varieties of than our imaginations today can
leaders solve the economics and
livestock
shorter working conceive."
technologies involved in automa- |
hours for farmers due
to such
There's the picture of 1976
tion during the coming decades.
Just as the steel industry grew progress results as tractors that one that we can look forward to
plow by themselves ..
automatic with great hope and expectation.
from infancy to manhood, along

It has

will it be before total

soon

automation

say

more

or

speed things. Just as

already

of Introduction

Rate

will
this to-day basis. But one or even
though they will several technological victories do

box, even

have

be

demands.

consumer

human workers in

many

the

if
with pre¬

industry will be necessary

out

electronics field

there

However,

time.

right

course,

show

of the Radio

I'll

boom

.

.

and
washer
dryer,
stacker - garbage
there'll be illuminant
paints to light our rooms, with the disposal units
"We'll do more travelling
by
intensity controlled by the push
button
we'll have lighter superhighway, with larger passen¬
clothing, but warmer, for winter ger space in our cars, smaller but

this is.

no

a

lasted

it

if

be

automation.

bust for

with the great

Mr. Sprague was
speaking primarily of the elec¬
tronics
industry
whose growth
will be proportionate to increased
automation. But forecasts of this

the
to

the worker today possesses
far more skills than he did prior
to the Industrial Revolution.

just

Of

to

But

do.

humans

this

of

has already

should

There

ing

all-time high in em¬

an

.

that the achievement

see

can

we

In¬

Massachusetts

stitute of Technology
"the human

to 10%.

of from 8%

and

the

increase in the labor force

an

will
be
the
the abilities

perhaps,

greater demands on
of

period, but

the same

during

only

of automation. Even more im¬

portant,

more

uct

tainly won't apply to tomorrow's
era

figures,

these

than four times the
most optimistic estimate of the in¬
crease in the Gross National Prod¬
try,

be

must

how far from the truth

medicines

.

.

trial tools and machines

leisure time will give us

creased

realize now

I hope you

time.

of

undoubtedly

"Summarizing

further edu¬
cated—because the yardsticks by

agement

relatively

appears

soil binders

..

.

.

.

colleges, and theaters ... a
education level for all .

the

dislocating

and

.

.

but with

work force in the same short span

during this seven-year period, we
see a possible 82% increase in the
volume of the electronic indus¬

that in order to carry
responsibilities, man¬

these

overnight

1960.

already touched on the
greater responsibilities that
lie
ahead for management. I think

has

into

small, with most estimates show¬
ing a probable increase of from
8%
to 10%
between 1953
and

Better Management

out

This

force.

to,

have

you can see

ployment . .. there'll be more and
better
roads, schools,
hospitals,

This

economics.

of

And Growth oi Electronics

I

doubtless

tilizers

and the oldsters will
be more robust ...
"There'll be automatic factories,

imaginations of
more
than the cold,

Automation—Robust Robot

furniture

lifespan will be

100-year

a

...

common

the public
hard facts

the

an

older population

itself often not wholly free of New
it fully
fol-de-rol of the day. It is safe enough,

wing of the party was
Deal influence,

but it could hardly be said that

endorsed all of the

a.(.. |f- ,^<f(|)lff

Volume 183

Number 5516... The Commercial and Financial Chronicle

feel sure, to assume that

we

substantial number of in¬

a

cumstances

now

going

hear very much from these doubters

campaigns.
them

We

hearing

are

little

increasing rapidly and obsolescence rate is
expected to heighten with color television.

from
In

now.

Take

much discussed question of our
foreign
policy. All recent Administrations have pleaded that their

did in the international
sented

of them have

nonpartisan and

was

positions of

developed

that

that

say

evision

with

this, that

with the facts

the other "doctrine" which temporized

or

by which

than

tions of the world situation

as

a

result of two world

much

leads

argument

!

still matters about which

are

but

to

What Do
Is either

patched-up

policy

or

the

other

stands,

prefers

a

simple, direct state¬

is the

or

one

coasting along

talk * about the

to

have had serious

wars

mon¬

ochrome

sets

which

deplet¬
the

consequences upon

already declining world influence of Britain and France.

the moment this state of affairs is

itself most evident in the Near
the Far East. It is

effect

labor and

"must" be
fill it.

facturing, wholesaling

the

manu¬

year-end and

the

were

earnings

of
8,490,539
in
1955,
equivalent to $4.39 per share of
common stock, compare with $7,572,024 or $3.91 per share in 1954."

in

November

accept¬

With McCormick & Co.
(Special to The Financial Chronicle)

LONG

and

He

filiate

Chicago

in

verted

and

to

will

color

be

exclusive

making

lib1

areas

has left

a vacuum

Bache Adds to Staff
BEVERLY
Howard
Bache

HILLS, Calif.—Pearl
joined

it

v

ously if

we

would,

Mr.

Howard

any

clear views

they reached

any

NEW YORK

on

these questions and, if

reports

have

so,

Largely trumped

the President's health and what he is

Presidency certainly

up

questions about

THE

enable the Democrats

if not the

Obviously, too, there is

paid

expeditious and

THE

popu¬

over

convenient

BUSINESS

NUCLEAR

increase of 17%

ITS

With Coburn Middlebrook
(Special to The Financial Chronicle)
—

John R.

Moore has been added to the staff

will be the speaker at the
luncheon meeting of the Invest¬

of Coburn

ment

of

reasonable

to

the

power

The

and

gas

sales

over

an

the previous

increase of 13%.

EARNINGS

-

Net income increased

HARTFORD, Conn.

contributed materially

maintenance

of the

year

public questions. It is unfortunate.

President of Diamond Match Com¬

tion, together with its high efficien¬
cy,

of customers made in¬

use

campaign topic. And so it goes through¬

CHICAGO, 111.—R. G. Fairburn,

the Danskammer Point Steam Sta¬

—

Company's serv¬
ices, with total electric sales showing

Perhaps the President's health is

Chicago Analysts to Hear

Company generated 97% of the
total electric requirements of its
customers. The increased
output of

creased

to the farmers. It is not easy to make

out the list of current

-

The

All classes

an

a more

...

supply costs.

being said about agriculture, but the

"issue" in this way.

OPERATIONS

-

development. Completion
Thruway to
the outskirts of New York City of¬
fers favorable prospects for the
area's further growth.

of draining funds from the pockets of the rest of

to be

SERVES

of marked progress

of the New York State

long list of domestic issues

to be about the most

seems

lar way

IT
year

residential, commercial and in¬

in

neglected through to the day of voting next

November. Much is

was a

dustrial

being neglected, and we are afraid will con

tinue to be

contest

a

AREA

1955

trying to do to the

Republicans to avoid the issues.

are

on

fundamental conclusions as to what we

should and could do?

which

t raI

e n

Hudson

Ml

ideas about the validity of

our own

arguments; the question is, have either of the major

parties

ALBANY

C

8%; and

earn¬

share increased 6% to more
than $1.00 in 1955. Uninterrupted
dividends have been paid for 52
ings

per

RESEARCH

-

Company is keeping informed
of
nuclear
power
developments
through its participation in the activ¬
ities of Atomic Power
Development
Associates, Inc. and Power Reactor
Development Company, and the as¬
signment of an engineer to the
Brookhaven National Laboratory.

years.

porated, 100 Trumbull Street.

pany,

Analysts Society of Chicago

Room

at the

Midland Hotel.

Two With Paine,

Fahnestock Adds

L.

Tiglio

with

has

Conn.

become

Fahnestock

&

Webber

(Special to The Financial Chronicle)

HARTFORD, Conn.

(Special to The Financial Chronicle)

NEW HAVEN,

& Middlebrook, Incor¬

8 in the Adams

to be held March

W.

Angelo
connected

—

Co.,

205

Bevier

and

—

Ronald

Charles
H.

Kent

have

joined the staff of Paine,
Webber, Jackson & Curtis, 111
Pearl

Street.

Church Street.

Blyth Adds to Staff
LOS ANGELES, Calif .—John

G.

Reardon

became

a

M.
Bryan has become associated with
Blyth & Co., Inc., 215 West Sixth

partner in Brady, Baird & Garvin,
115 Broadway,
New York City,

Street.

Exchange, effective March 1.

-




-

members

of

the

American

Central Hudson
Gas & Electric

Brady, Baird Admits
James

Stock

Principal Office

Corporation

Poughkeepsie, N. Y.

"Serving the Central Hudson Valley"

A

staff

copy

Report

of the Annual
to

Stockholders

for 1955 is available

request.

on

of

Roxbury

was

previ¬

ously with Leo Schoenbrun.

this reasoning runs, suffer seri¬

so

do not do what is necessary to block Kremlin

imperialism. We have

■

iiiii!!!WiJ

J'wr

the

& Co., 445 North

Drive.

all

has

that

We, and the remainder of the world outside the

Building.

formerly with California

Tr-n

East, the Middle East and

with McCor¬

(Special to The Financial Chronicle)

con¬

for

now

Security

Investors.

af¬

NBC

was

is

Co.,

ac¬

day time
events

The

Sr.

&

mick

events.

other

BEACH, Calif. —Henry

C. Alvis

telecasts of outdoor sports

at reason¬

about

$18,740,426, up 13%
over
1954,
the highest in the record of

and

gaining

with

of

the company except for 1950. Net

—the world series, football games

though sales for

even

industry

experience

good

retail

and

levels totalled about 2,100,000 sets

filled, and that the Kremlin is taking steps to

Russian orbit

an

at

business

and

gradually. The number
of telecasts are increasing, both
day time shows and evening pro¬
grams.
There are more stations
preparing to give more color pro¬
grams.
The telecasters have had

In¬

materials.

inventories

par¬

which
in

increase

"Consolidated earnings in 1955,
before provision for taxes, were

ceptance

higher

to

military

our

Television

is

com¬

18%.

country.

television

Color

in

and
each

achieved despite a decline

commonly said that the decline of British

and French influence in these

us

give

in this

use

television

Russia has always done, taking full advantage of the

situation. At

such

of

dustry

able levels

possibility of doubting that the Kremlin

were

radio,

this

end it is estimated,
37,500,000 monochrome

Color

shifted toward higher priced sets
the price level generally in¬
to

gains

The
$21,428,000

were

ticipated

At year

in

sets

and

at

Nor is there any

there

with

compares

television

color

ance.

7,463,800 in 1950, the previous
high.
The dollar value of sets

costs

President's

health? There can, of course, be no doubt that two

ing world

7,756,521

creased

business

the

for

record

made in 1953.

was

divisions

was

growing share

a

sets.

Earnings

munications

obsolescence will further increase
Paul V. Galvin

produced was greater than in the
previous year because the demand

They Think?

party ready to make

ment about where it

while

as

any

were
as

wars

programs.

is,

in

home

should continue to support a high
level of production.
The rate of

produced

and the rise of Kremlinism

provides

television

the

and

sales

new

volume

television

color

10% above 1954. The auto radio

or

rap¬

these

of

sets now

sets

There

is

smaller

of

previous year.

faced, but the basic altera¬

were

replacement

models.
Many sets are old
enough to require new picture
tubes. Replacement of these older

tel¬

more

for

television

rent

1955

of

company

early sets
picture tubes
and no longer provide a quality
of reception available from cur¬

reveals

"In

Many

contained

industry
produced and
sold

greater

a

$226,654,000 sales

demand

second-set

1950.

pre¬

year.

the

forward

come

to

up

total of

com¬

to

letter

thoroughgoing long

a

realistic foreign policy. They have

range,

1955

ceding

as

measure

increasing.
There
was
a
975,000 sets sold in 1948,
3,000,000 in 1949 and 7,463,000 in

—

set

per

pared

repre¬

party

one

hardly be going too far to
ever

in

r" "t

"The

Mr. Galvin's

much the beliefs and

as

the other. It would
none

sphere

not

idly

value

of these Administrations

any

localities is the

of

Sales

expectations.

earnings 13%,

least efforts have been continuously made

appear—that what

December did

and

greater dollar

sales

"A

letter accompanying Moto¬
1955 annual report, Presi¬

dent Paul V. Galvin observes that
the industry's sales were uo 10%,

foreign policy be "left out of politics." It has been made to
to have it

a

rola's

this

appear—or at

of

more

forerunner

vision demand is

during the coming

depressingly

into

grams

*

Motorola's President reports replacement and second-set tele¬

shall

we

emanating from Chicago
beginning some time in April,
1956, thus providing upwards to
10 hours of color a day.
This
progress in extending more pro¬

Coloi Television Demand

today. But in the cir¬

on

obtaining it is unlikely that

39

programs

Replacements, Second-Sets and

fluential members of the Republican party—as well as of
the Democratic
party—privately if not publicly feel strong
doubts about much that is

(1327)

Financial Chronicle.., Thursday, March 15, 1956

The Commercial and
40

(1328)

from page 12

during the last con¬

Hotel

ham

Continued

and

values of the stocks

twb days' study total transactions

re¬

are

the head when he said:

ducing the amounts of contribu¬
tions to the pension funds as com¬

patterns for good
behavior in all pursuits, botn in¬

pared with say the 3 % % rate that
they might have used some years

vention, hit the nail squarely on
"There

Broadcasting

TV and Radio

dividual

FCG Commissioner
a

is

advertising
policies in broadcasting. X- Even if
they did not have such a clear
self-interest they still have a pub¬
lic

sound

upon

responsibility to face up to a

situation that threatens the entire

including those
directly or indirectly

broadcast industry

associated
with it.

Steps

Constructive

Professionals

that

and

can

the steps
should be taken to

better than

know far

I

responsibility. I will list
few of them:v

meet this
a

(1) Establish and maintain high
standards in your

respective pro¬
fessions and encourage others to
join you.
(2) Refuse to exert pressure that
will contribute to the lowering of
good standards such as over-com¬
mercialization—triple and quad¬
ruple spotting—the wrong prod¬
ucts at the wrong time, etc.

(3) Avoid sanctions against sta¬
tions which object to the accept¬
of undesirable

ance

the
any

possible by favoring him over
sharpshooter who will accept
type of questionable business

to make

A reward of

fast buck.

a

merit is in the long run good busi¬
ness.

Remember that continual
and self-regulation are
the prices we pay for the privilege
of operating our business in a free
economy with a minimum of gov¬
ernment regulation.
(5)

vigilance

(6)

Work with

copy

your

some

of the

(7) Think sometimes (and en¬
others to do so) of the

quality of an audience to your
commercials, rather than just the
size

of

that

putting

audience.

Instead

much emphasis

of

rat¬
ings (a measure of size only) give
more thought to "qualitative" buy¬
ing, as this will do much to help
raise standards in programming
so

on

that you

have organ¬
meetings is evi¬
dence of your desire and inten¬
tion to cooperate in solving this
important problem by attacking
it at the
that

your

will

be

casters

I

source.

efforts

can

and

assure

and

welcomed

you

assistance

by the

government

broad¬

officials

Minority
Since

the

vast

majority of re¬
sponsible leaders in broadcasting
associated businesses

are

al¬

ready cooperating wholeheartedly,
difficulties

our

in

correcting the
finding ways

abuses are reduced to
and

of bringing the small

means

minority of malefactors into line—

preferably by education and per¬
suasion.

point out to those
who do not realize the seriousness
the

that

situation

there

confronting

is ample proof in the

the

Better

fices

of

reau

throughout
that

itsel: If we do not govern
ourselves, we will be governed.

through their cynical
disregard for the rights of the cus¬
tomer and
legitimate advertiser
has reached the point where the
proper function of advertising as




in

institutional
a

may

yields

on

way

Summary
In

we

fields

and

bonds

on

were

from dom¬
inance in the market place.

must
consider that the spread between
First,

investors

long

very

how
act

to

as

managers

the
still

conclusion,

investor

has

the

institutional

will

undoubtedly in the
future, as in the past, make his
investment policy fit the problems

stocks at the market

greatly from what it was five or

that

Corporate pension
fund trustees, on the whole, are
still investing in common stocks
a
certain percentage of the cash

present relationship between stock
yields and bond yields and with
the present outlook, institutional

(3) The placing on sale of a very
limited quantity of the advertised

"I raise

product, insufficient to meet rea¬

customers

that

against

—

tne

evidence that (to some in our

inconven¬

are

sound, and perhaps

wita guilt and mis¬

disturbing
in¬
dustry) a dollar is a more impor¬
tant commodity than self-respect.
givings

inaccessible locations

in

product

voice, then—querulous

may

itself tinged

(4) The placing of the advertised
so

a

though it

demands.

sonable

ienced in attempting to inspect it.

(5)
The advertising of "loss
leaders" with the purpose of sell¬

It is not. A dollar in television does

ing something else.

trary, self-respect attracts dollars."
I do not want to leave the im¬

(6) The practice of saturating a

not

with an inordinate num¬
spot or inordinately long

program

of

ber

commercials.
has

It

buy self-respect; on the con¬

pression with you that I favor a

do-nothing policy in striving for
proper solution to this com¬
plex problem. I fully realize that
the

given

been

highest

the

cannot

ciose

our

the

to

eyes

priority by the officials and mem¬

we

bers of the National Association of

fact

Radio and Television Broadcasters

who, despite all danger signs and
storm
warnings, and witn total
disregard of their responsibilities,
continue to prostitute advertising

efforts

whose

establish

to

self-

regulation of the industry merits
high praise.
John Fetzer, former Chairman
the

of

an

Review

Code

Television

Board, in

address at the Shore-

that

few

a

sharp operators,

legitimate ad¬

privileges—betray

broadcasters

and

vertisers

and

—

exploit the public.

six years

Continued

from

centage has dropped and, possibly
some of the older funds no new

but

amount to

bring

additional

an

the stock ratio

up

of the whole trust. After the rapid
rise in the stock market in 1954,
I

inclined

to

think, without
any accurate figures on the sub¬
ject, that the catching-up process
was considerably reduced in 1955.
am

stocks might be sold.
Ill
personal trust accounts there has
been a tendency to sell stocks on
balance for some time in cases
where
stocks
have
reached
a

Further I have been advised that

pension

some

trust

managers,

while

continuing to purchase
with new money, reduced
the percentage that was placed in

stocks

such investments.

Equity Market

tion to the entire trust.

savings banks and life insurance
companies cut down their pur¬
seem

There

investing

is

that

ownership of living
organizations. Some grow faster
than others. Sometimes they get
sick

occasionally die. How¬
think everyone will agree
that over a period of years the
and

ever, I

companies show a growth
earnings and divi¬
Accounting for that sort
investment
against fixed

very

dends.
of

an

interesting, has not had much dis¬

dollar liabilities poses more

cussion but which will have to be

lems

considered to

values,

This is, how to

as

ac¬

growth

in market

values, of the assets of the
There

pen¬

than

prob¬

present when the
investments are fixed dollar obli¬
are

gations with

a

fixed interest rate.

So that this will not seem to be

growth in intrinsic

the

or

greater extent

a

time goes on.
count for the

theorizing, let me cite some
figures.
I know of some rather
vague

teresting article on this subject
by Samuel N. Ain in "Trusts and

portfolios that
have been built up in recent years
where the present market appre¬

Estates

ciation

was

a

very

in¬

Magazine"

of December,
points out that in a
pension plan with contingent lia¬
bilities of $10 million, if there are
1955.

He

in

assets

million
of $8

the

which

trust

but have

cost

market

a

$5

value

million, and the assets

are

valued at $8 million for actuarial

there

purposes,

to

be

remains

funded.

only

$2

Contrary-

wise, if the market value were $4
million, there would be $6 million
to be funded.
Market value, for
and obvious

many
a

future
fund

not,

reasons,

would

figure for the actuaries
in considering whether the

poor

use

but

seems

large

investment

is

or

seven

there

cost

is

in

substantial
1950

fore
are

Now
a

if

amounts
their
even

the

long

be¬

capital gains

greater
actuaries

than
are

7% rate of return, in cal¬

culating the amount of principal

method,

required to fund the pension lia¬

bilities,

time

giving

the

and

probably

what should be done, now or some
in

However,

ago.

particularly outside of
New
York
City, many pension
trusts that bought common stocks

which

used,

to be the preferred

years

are,

75%.

if

equally well if

done

they started early enough, and I
sure
many of them
did, al¬
though recent purchases, of course,
would not have appreciated to the
extent of the purchases made six

using

the

the

yield

Pension trusts

7% at cost.

have

and

dividend

?m

pension

of

more

or

indicated

over

could

75%

is

present

adequately covered or

liabilities

were

1955

and

ro

reason

future, with the

ap¬

then
effect

they
to

for them to

change their conservative ap¬
proach yet. The open-end invest¬
ment trusts must be put in a sep¬

Many of the big
pri¬

category.

have stated that they are

With

meet.

the

group

to

slower

the

buy

than

stock

has

it

been.

should

market

much further without

rise

equiva¬
lent rise in
earnings and divi¬
dends, there should be a tendency
for

the

and

institutional
his

reduce

net

perhaps

an

investor

to

purchases further

in many cases even

the selling side, particularly
yields approach bond
yields more closely on the aver¬
age. On the contrary, on any siz¬
able drop in the market without
any drastic change in the business
outlook, I would expect institu¬

go on

stock

as

investors

tional

increase their

to

purchases. Howe/er, one must al¬
ways remember that
behind the
institutional

facade

merely

are

common

are

the

are
par-

in the stock market

on

diversified and intelligent basis

sions.

blue

stocks by these companies will be

side

certainly
increasing

reflection of the pub¬
and desire to have a

a

ability

lic's

small

piece of

folio

of

the

corporate

diversified port¬

a

of

stocks

common

America.

relative

purchases
of

ume

new

corporate

some

for those listed
Stock
that

boxes do
fect

upon

the

was

equally large invest¬

an

ment counsel firm and an invest¬

trust purchasing
it. Also,
going back to the experience of
the 30's, I can remember when
groups
of individuals sitting as

ment

just

We have

which

is

of

esti¬

the New York

Of this,

stocks
sitting in strong
not have any direct ef¬
the market value. The
been

markets reflect only actual trades.

The

Stock

York

New

Exchange

interesting study last
institutional transactions
that exchange on two days,

made

a

on

very

of

year

July 15. For the first
time, with the cooperation of com¬
mercial banks and trust compan¬

ies, they were able to reveal the
degree of investment discretion
exercised
by the banks in the
market

originated
The

desk.

had

no

that

transactions

the

at

order

bank's

study shows that banks
discretion

investment

in

41% of the volume, partial discre¬
tion

in

31%

and

full

investment

responsibility in onlv 28%.
various

were

headlines

much swayed

moods

of the

moment as the man in the street.

There

written

for this

study of market transac¬
tions, but one headline that in¬
terested me was that life insur¬
ance
companies
had
greatly
increased their stock market ac¬

can

one

forecast whether

or

any

not

the institutions will be a stabiliz¬

influence if there

ing

bination

of

is

a

declining

a

com¬

market

and drastically declining

activity, and on the
too

be

cannot

we

business
other hand,

sure

what the

net effect of institutional activity

be

may

the

if

average

of stock

higher than the
average bond yields. Perhaps then
everyone would be worried about

yields

no

were

inflation.

Therefore, I would suggest that

June 8 and

stock

as

prevailing

the

by

vol-i Therefore, I do not think that

$200 billion just

on

Exchange.

have

net

total value

the

stocks,

mated to be

to

stock issues.

mentioned

not

large round

institutional

to

as

the

my

were
selling a certain good
chip stock and on the other

seemed to be

numbers

to

came

committee members in institutions

Institutional Transactions
We have given some

in

back

attention
that one large investment trust
and one large investment counsel
firm

primarily

remember

I

30's, when it

cline in net purchases of common

Common stocks repre¬

sent shares of

trend in assets,

is another facet of pen¬

trust

they have a fun¬
underlying growth in

real value.

would

there

in

to be

chases

much
If

a

as

continue

ably

and, therefore, the increase or de¬

that

is

Commerce,"

of

"Journal

the

to

a

Granted, markets are
very volatile so they do not pro¬
vide the proper answer.
On the
other hand, one of the main rea¬
sons
for
investing
in common

better

sion

high market value in rela¬
According

rather

nortfolios, these companies
primarily vehicles for public

preciation?

damental

rare

more

cases,

tic? nation

stocks

even

investors

to

They
stock trusts. While collections of individuals.
they may change the percentage may all have the same facts and
of cash and governments in their come up with different conces¬

The Institutional Investor
tribution,

In

stocks.

mon

he

will prob¬
stocks on
balance but the rate of growth
of such purchases may well be

is being invested in com¬

money

marily

Looks at the

gather that the per¬

I

in

arate

6

page

has narrowed

ago.

but

flow,

ones

to

minority,

accepted truths because they

clues

trust

in the near future.

they

were buying on
These small per¬
centages would seem to show that

situations

the

some

us

pension

than

the mu¬
selling

represent the essence of self-reg¬

Business Bu¬

the country to
short-sighted

self-evident

these

mention

"I
and

give

were

ulation; an awareness of the power
the public.

be

this

no

for

which

cited and our con¬

to

as

except

funds

those two days.

the older pension trusts

of

some

these

of

ponderance
tual
more

Stock Yield Spread

The figures

jectures

All

advantageous for the merchant to

of¬

files of the FCC, FTC and the

indicate

us

The formula
less complicated than de¬

mocracy

more

are

public—operative

1.7%.

of companies were repre¬
sented on the selling side as well
as
on
the buying side, although
the buying
side showed a pre¬

groups

xiow of funds.

Bond

funds

mutual

sell.

million

I would like to

of

which

items

to

tomers

sion trusts.

alike.

and

is

"knocking" of adver¬
tised merchandise by sales people
for the purpose of switching cus¬
The

(2)

thus

of new funds
into these trusts, or whether they
will be content with the increased
yield which in itself reduces this
reducing the flow

through its elected representatives

Equity Asset Valuation

ised this series of

values for actuarial purposes

not compose your
good conduct,

the

eventually

as illus¬
Department

cases

Treasury

transactions were only
56,000, which is about 4/10 of 1%.
Closed end investment companies
represented 1% of total transac¬
tions,
pension funds
1.2%
and
company

the

in

of

standards

the

counting for both the sell and buy
sides. Of this total, life insurance

ultimately cause a write-up
corporate pension trust

will

it

such

in

whether
trated

—will do it for you.

and general operations.

The fact

"For if you ao

(1) The advertising merchandise
that the advertiser does not in¬

and

courage

the

own

de¬

television
commercials. Suggest to media and
copy heads better ways of reach¬
ing the "right" audience at the
"right" times, by altering or
changing a copy theme, or length
of commercials, etc.
(Don't just
be
passive about this; take the
initiative.)
handling radio

the

written for you.

practices that are be¬

ing widely condemned as shown
by the files of Better Business
Bureaus throughout the country.

partments to suggest better ways
of

better

I certainly don't know what
final
outcome
will be, —

ago.

is
to initiate your own rules
game than to have them
that

professions,

older

of

however, to remind you of

for

programs

presentation at the wrong time or
for any other legitimate reason.
(4) Encourage and reward the
good operator of a station when¬
ever

like,

tend to sell.

yourselves

like

the

practices to which I refer and
shall not dwell on them. I would

I

our

professions have done tne same
thing—Law, Medicine, Education,
journalism, etc.
"We have learned from them,

the

pendent

seriously threatened.
I need not remind this group of

In

corporate.

fortn

set

useful agent in our economy

ceptable standards only at their
own peril since their activities are
so closely interwoven with and de¬

and

profession, we have tried to
tnese patterns.
Other

own

As Seen by

are

amounted to 13,580,000 shares, ac¬

the

best

to

go

is

not

to

way

about
to pay

what

for an individual
investing in stocks
too much attention
institutions

the

are

re¬

ported to be doing, but to do what
seems
to have been the best in
the
past,
namely,
to
analyze
thoroughly the comoany or com¬
panies in which one is interested
and then decide on the basis of
fundamental
whether
stocks

it

or

analytical principles
wise to buy those

is

As to the long run

not.

aspects of institutional investing,
if the available funds continue to
increase in nension funds and in
investment
cause

the

trusts, it will be be¬
people of the country

and can so direct

tivities.

are

but the

their

funds.

mean

that the country is growing

were

They had percentagewise,
implication was that they
now
a
large stock market

factor.
What
proper

were

the

facts

perspective?

in

During

their

the

prosperous

and
need

that

That will,

in turn,

corporate America will

more

equity capital.

Volume 183

Number 5516...The Commercial and Financial Chronicle*

(1329)

Continued

jrom

about

4

page

September the rate of

re¬

to

cease

Liquidation of automobile inven¬
tories is in process and will con¬
tinue for the next six months. The

several

conditions

•—

them the substantial jump
in
the
rate
of personal
saving
which began in the last quarter
of

1955.
The growth of personal
saving, while bad for retail trade,
will not be entirely offset by in¬ is helping to halt the drop in out¬
creases
in other kinds of
inven-^ lays on housing. With lenders be¬
lories. The fall in the rate of in¬ ginning
to
seek
commitments,
ventory accumulation will be an some small
gain in residential
important new influence for con¬ building is to be expected.
Ad¬
traction.
In
the
second
place, - vance indicators of the change
automobile sales, on a seasonally have been the rise in January in
adjusted basis, must be expected applications for j.]/lA appraisal
to
and
for
VA
drop.
Unless people believe', commitments
ap¬
that there will be no significant 4 praisals/
.'V..
'• "
HI
7':■"
improvements in 1957 cars or un¬

drop

in

less

automobile

they

inventories

offered' generous
concessions on 1956 cars,

price

they

Will

are

have

good

the

horizontal

present

people

of

commercial

fleets and

tax

companies to make replacements.
1

believe

not

qo

viduals will

be

that

indi¬

most

offered

sufficient

price cuts to induce them to buy
rather than to wait for next

now

year's

In the third place, the
repaymc-nt of short-term

cars.

of

rate

personal debts has been rising for
more

than

tinue

to

a

rise

months.

As

automobile

ing

for

few

a

result

a

sales

of

more

falling

and

of

movement

continue

for

retail

few

a

sales

months

longer.
But most of the influences mak¬

ing for expansion are continuing
some
important new influ¬
ences for expansion are develop¬
ing.
Government
expenditures
and

for

goods

services

and

are

con¬

tinuing to rise, and business out¬

lays
at

plant and equipment will

on

least

leveis

remain

tor

at

present

time to

some

high
and

come

rise.

Wage increases
continue to spread and to add to
personal incomes. The oil indus¬
try
has
recently
announced
a
moderately large wage increase,

may

even

other

and

advances

will

be

soon

negotiated in the airplane indus¬
try, the apparel industry, textiles,
iron and steel, and others. In ad¬

dition,

thousands of work¬
ers will receive increases negoti¬
ated last year, and considerably
million workers

a

are

receiving advances from the rais¬
ing of the national minimum on
March

1

$1

hour.

an

Under

in¬
would curtail employment

creases

and

to

circumstances,

some

reduce

spending.

the

wage

total

of

amount

Under present circum¬

stances, most wage increases will
the

raise

total

amount

of

spend¬
payrolls
without producing offsetting cuts
in non-payroll expenditures.

ing—they

New
will

will

influences
from

come

industry.
down

shortages

expansion

construction

actual

has
to

of

for

the

The

construction
held

increase

volume

of

apparently been
small

a

and

men

extent

by

materials.

Hence, the volume of construc¬
tion, after adjustment for sea¬
sonal, went down slightly from
August to January in spite of the
fact that during the same period
contract

awards

rising. The

were

backlog of unfinished construction
be

must

growing,

in the

rate

to

ahead.

be

I

have

some

of construction
Even

residential

on

and

rise

seems

expenditures

building, which,

pointed

have

out,

as

been

dropping since August, will soon
begin to rise in response to the
growth of contract awards for res¬
idential

building in - January and
February. A principal reason for
the

recent

drop

has

been

the

shortage of mortgage money. This
1 This

price
tories.

of

figure

increases

excludes

The actual

inventories

the

on

rise

was

at

effect

any

change
in

the
an

in
bock

even

rate.




of

inven¬
va'ua

the

second

drop in the

a

concerns

on

Simultane¬

in these

decreases

ous

two

kinds

the

in

last-quarter of

the

movement of business for another

quarter

possibly hriqg about a
Of'course, for a
inventory spending and

or

small downturn.

drop

in

in the

buying of plant and equip¬

ment to

bring about a downturn,
the drop would have to be fairly
substantial—or
have

cars

of buying

is

It

the

that it

or

not

likely, however, that
of

part

substantial

a

tired

was

the

will

year

in spend¬
ing on inventories or on plant and
equipment.
To begin with, in¬
ventories, outside the automobile
business, at the present time are
low

about

—

drop

times

1.54

comparison with

1.58

sales

times

in

sales

in December, 1954, and 1.61 times
the peak of the boom in

sales at

May, 1953.

In manufacturing, ex¬
clusive
of transportation
equip¬
ment, the ratio of inventories to
sales

has

dropped

during

the

substantially

last

year—from 1.78
in December, 1954, to 1.64 in De¬
cember, 1955. A large volume of
unfilled

orders

production
of

plus

the

capacity in

industries

will

limited
number
a
large

a

make

build-up of inventories in the next
few months unlikely.
Nor

will

is

it

than

be

that

substantial

a

there

drop

in

1957

on

year,

a

in

the

first

three

The increase in

justed basis.
will

be

To these
the

added

increases

of wage

payrolls and

on

demand for

influences

effect

the

on

goods.

consumer

Un¬

foreseen events can, of course, al¬
ter the business outlook, but at
the present time it is much easier
to

make

out-a

business

in

'

for

case

the

rise

a

a

for

case

falling business.

■

ently

of

short-run

35-hour
week

week

likely

issue

in

made

October

last

indicates

that

outlays

for capital goods will be
larger in 1957 than in 1956. About
22%

of

spend

the

more

companies plan to
in 1957 than in 1956

and about half

the

next

same

remaining

plan to spend about
year as this.2
The

plan

to

1957 than in 1956.

spend
But

as

less
a

in

given

time draws nearer, most compan¬
ies usually add to their plans for

capital

outlays

for

that

period.
Hence, present estimates for cap¬
ital expenditures in 1957 are prob¬

ably too low.
There

are

expecting

several

the

total

reasons

for

buying

of

goods and services to rise in

the

last quarter of
ment outlays

ices will
rather

be

the

year.

Govern¬

for goods and
going

steadily.

serv¬

slowly but
Furthermore, by
up

faster
2 Business

Week, Nov. 12, 1955,

p.

29.

pay

indications

clear

no

pretty

generally

that

will

unions

this

push

important difficulty
from the standpoint of workers is
that
or

36

wage in¬
in weekly

use

a

cut

a

raise

to

weekly takedivide a
good
many unions.
It has been occa¬
sionally suggested that some
unions, in demanding a 35-hour
week may really bear in mind a
week

42-hour
on

may

with

half.

sixth

a

time

Saturday, paid at

shift

and

cutting

weekly

hours

usually requires

an

35

to

increase

two-day
believe

\

"1

that

weekend
that

even

a

Contiriued

I

do

not

sixth shift at
on page

42

What

future?

near

A REPORT

important

an

for

collective

of continued progress

bar¬

gaining? In particular will the
give a new impetus to pat¬
bargaining? Most important
of all, what is happening to the
position of management in the
day-to-day operations of plants,
and the opportunity of manage¬

and

tern

ment to

the ordinary tools of

use

management

and

to

growth during 1955...

*•

•

keep opera¬

tions efficient?

(1)

Outlook

The

During the last

for

Wages.

from January
to January straight time hourly
earnings
in
manufacturing
in¬
year

creased almost 9c, or
In

about 4.9%.

non-durables the rise

was

less

than in manufacturing as a whole
—7c an hour, or 4.2%; in con¬
struction

it

was

8c

3%, and in

or

CAPACITY OPERATION throughout 1955.
J
i

SALES—6% greater than the. year before.

INCREASED

retailing about 5c, or 3.4%. Ex¬
in retailing most of these
gains occurred
after June and

cept

INCREASED EARNINGS-$1.57 per

undoubtedly influenced by
the large settlements in the auto¬
were

demand

strong

for

DIVIDENDS—regular dividends totaled 70 cents
labor
,

that

and

1956

leads

that

pect
1956

the

rise

one

in

will be about the

1955.

indi¬

that is

exists

for

now

cated

to

ex¬

wages
same

as

in
in

The steel settlement will be

the

most

and

will

large

one in 1956,
large — too
extended widely to

important
be

other industries.

however,

a; share (including a 10c extra payment).
PLANT EXPANSION

When

construction of two

—

manufacturing units at

our

Lansdale plant

completed, they will provide

50% capacity

over

will

workers' union

This

settlement,

establish the

creases

among

of

as

the

SALES

FACILITIES

1955.
EXPANDED-sales force, warehouse

and sales office facilities have been increased.
BACKLOG —at the
to four months'

beginning of 1956 amounted

production.

major unions

construction

and

min¬

PROSPECTS

FOR

1956—an increase in

and industrial construction should

Outlook

The

sation.

started.

increase of

steel

by far the most
winner
of
wage
in¬

outside

(2)

an

new

was

rather

be

to

share against

$1.45 in 1954.

mobile and steel industries.
The

There

is

for

little

Supple¬

interest

in

more

school, hospital

than offset

an

expected lowering of demand for tile in residential
construction. We expect
to

continue at

a

operations in 1956

high level with

satisfactory profits.

than the automobile workers, the
steel workers, and two or three
others.

The steel workers, if they
this demand hard, are likely
I do not expect to see

win it.

supplementary
unemployment
compensation spread widely out¬
side
the

the

automobile

steel

industry,

industry, or
where union

leaders are pushing it. The great
majority of workers are so well
protected by seniority rules that
supplementary
unemployment
compensation would
mean
vir¬
tually nothing to them. Hence
they
will
prefer to
see
their
unions press other demands;
Supplementary
unemployment

n r

tTE.

compensation will be pretty well
established in the automobile and
automotive

industries and
tne steel industry, but it will not
spread widely beyond those in¬
dustries. Certainly it will not be¬
come
nearly as widespread
as

Ceramic

Wall and
Flodf Tile

"America's Oldest Nqtye in Tile?

parts

pension plans.
The lim¬
ited spread of supplementary un¬
employment
compensation
will
prevent it from having much ef¬
private

I

{

r

a

So popular, however, is the

An

demand.

merger

to

spending

or

home

implications of the AFL-

merger

press

capital

hours

36-hour

the

or

be

to

the

the

Hill

of

offset

to

crease

Some

a

relations? What is likely
happen to wages in 1956? Will
the present year see a substantial
spread of supplementary unem¬
ployment compensation? Is the

business conditions. The McGrawsurvey

tion of whether to

giving serious thought
demand, but a shorter
work week is not likely to be an
important issue in 1956. Several
years
hence this story may be
different, but at present there are
are

such

and no gain in
Hence the ques¬

What about the outlook for In¬

supplementary
unemployment
compensation among unions other

independ¬
changes
in

Future?

hour

an

to

plant and equipment are in
large measure based upon longterm programs which will be car¬
less

Near

20c

dustrial

mentary Unemployment Contipen-

or

the

Important

of

take-home pay.

- ;

contrary, these expenditures
likely to rise. Plans to spend

more

in

36-Hour

or

an

20c or more in hourly
in order to prevent a
the weekly take-home
pay.
Many workers (and their
wives) would probably prefer the
20c rise in hourly earnings with¬
out a cut in weekly hours 10 a rise

IV

the

out

Likely to Be

around

earnings
drop in

months

closing

ing.

ried

the

of

of

of this year than it is to make out

on plant and equipment
in the latter half of this year. On

on

issue

in

spending

are

out of

one

Stabilization

Is the 35-Hour

(3)
Week

to

successful

probable

re¬

never

through large unemploy¬
ment compensation benefits will
have to be accomplished through
liberalizing the state schemes.

unions

public would

houses.

latter

see

the

decide that it didn't like

to

the 1957

probably

than about

more

housing, consumer goods in
general, and automobiles in par¬
ticular, will produce some rise in
employment on a seasonally ad¬

CIO

and continue the horizontal

good

on

arp

biles

will

workers.

expenditures by government and

the

spending could either offset
prospective increase;/ in the
production and sales of automo¬

a

the

for

the

of

quarters of 1956.

of

many

than

more

about

spending of business
plant and equipment.

con¬ year

slowly ris¬
repayments, the hori¬

debt

zontal

will

and it will

year,

inventories

on

half of the year and

If

10

seasonally adjusted basis, will be
higher

movement of business be followed

post¬ by an upturn or a downturn? A
pone
purchasing cars until the* downturn is unlikely, though it
new
1957 cars are available.
Of is not out of
question.
It could
course, the next few months are be
brought about by the com¬
likely to be a good time for own¬ bination of a drop in spending
ers

wait

months

to

reason

end.

an

automobile sales in the last

cars,

among

and

economy

to

come

many

some¬

incomes,

demand in times of

It

cession.

will

shortage has been reduced
by

probably

reach

three

what

will

sustaining

consumer

Most important, the
drop in the buying of automobiles

And Labor Relations Outlook
In the last quarter of
1955 inventories were growing at
the annual rate of $5.3 billion.1

and

begin to fall.

Underlying Economic Trends
cumulation.

rise

in

fect

payments of installment debts will

41

AMERICAN ENCAUSTIC

TILING COMPANY, INC.
<A

'i

lansdafe, Pennsylvania

'

,

*

•

s

42

The Commercial and Financial Chronicle... Thursday. March 15, 1953

(1330)

Cnntimipf] from
J

his stuff.

41

rxioe

F

■

o

Groups refuse to work
unless

over-time
n

number are asked to work overtime. If management yields to

«

mi

JTflWnC

IIM H AVI171VI f?

UllUeUYUlU

UwvliUAillv

*

alvl&Wil

demands

these

-

-

un-neecied

an

-

for

few weeks,

a

the union claims that the

practice

has been established and that the

And Labor Relations Outlook

union has

right to have it

a

con-

tinued.
time

and

half

a

Saturday

on

acceptable to the workers as
a
lasting arrangement.
I believe that the issue of shorter hours
versus more take-home
would be

rank and

pay will receive more
file discussion than did

the issue

supplementary
unemployment compensation versus higher
hourly pay, and I do not believe
that the rank and file will leave
the decision to their leaders as
of

much

they did when suppleunemployment compen-

as

mentary

sation was under discussion.

of

etiect

I he

week

on

greatly

^operations will vary
different industries and

in

If

plants.

work

shorter

a

w?e S
begin studying

interest

show

unions

effect

the

of

a

shorter worki week imonths m ad-

of

yance

negotiations.^ week
some
shorter work

industries

a

may

SIll

possible

make
more

Iw

nf

of plant

and equipment. In some cases the
demand
may
give
management

opportunity to negotiate

an

elimination

of

make-work

put
In

so

can

require

may

ment to add

ment

more

manageand equip-

men

an

avoid

to

one

work

the

obviously

-

and

step

shorter

the

cases

some

week

expensive
if at all

(4\ Will thp tnpre-pr nf thp AFT
(4) Will the merger of the AFL

and

the

CIO

give

impetus

new

f.?,patttru bargainin,g? In genfal
"No.
There are
only

which

unions

national

set

a

few

very

patterns

on

a

basis-though within the

Ire1 ma«vtienSa°t

r^Tet/e
WhPthe? Jiii J nilnt iniW«
Of

nnp

Whether
rin

e,

er

nnt

^eei

the

denend

nn

thl
HenSnl iS
thinZ
things.

the

not

Tre ZerZ J
mlfn T three
three
mam

tern

nr

hVp,

or

t

STfnnei fZ
fhe TTAW

thp

teT Ineh
wnrlrlrr
the
the

tQ

A FT

and

Tt

on

limiled

a

in

area

which

bili;

to perform

f

its

Is

the

mana2e-

func.

proper

in

an

pattern-

local

union

in

the

greater

management5 to

Heht to

get

standards

(and

change)
r5nlinp

d

aPnprni

in

'Thg

lant

methods

t0 decide matters of dis-

'

ugual

in

rnn

union

fnP

contract

that have substantially improved
conditions

,he

worker

shon3

their

in

since

In addition, there has

about 1950.

Provides arrangements by which been

slowing growing disposi-

a

tion to the part of unions at the
through established grievence national level to require local
procedures jn the event that he unions abstain frcm direct action
himsel£

r0;ect

may

befn "Treated

is

un-

J"™/ he 13 bun° treated un

and
in

the

of

labor

force

and

2,5% a year* T

J?er manhour

g®**

r

,

,.

,

been able to

But the actual conditions that
exist in many shops are far from »

to

com

may or may

..

t

T,

instruct

union

steward

him not to accent

this does not

mean

that

filed

The

t

.

j_

dow

^ ^oTdown

q

On

thdr

mav

it

men

^cVis

acBut

griev-

a
m

e

the

men

own

in-

Native, challenging the

management to imPose discipline. If the

management imposes discipline by
sending th« men home, it cuts
Production for which customers
may be calling- lt
risks a
wiJd-cat strike, which would still
cut production.

let" condiSont

oF the

*w

described

h.ve

*Tt

t

It

un

i*

t

rpr0vpr

tbe

shortage

of

thfcountrv S

been

^meers9finnni

,"go=nPnnIyu^fSS

_

,

3

„'„rinl

_

+u

<

thp

use

in

'
enroll-

•

+

+

of

management to recover tne use ot

rapid gr0wth of

0f discovery. I have pointed out

of at least slx cases sirce 19*9 m

which strikes lasting from three
mollths to more than six months

have occurred over the basic issue
of the right of management to use
the ordinary tools and methods of

several

times

our new

that

InTTevelmment

industry

research

the

in Amer-

work

^nduSrTmight Tel? be"1?^^^^dusTrylan industrv engaged in the production
of knowTdif It L oT of the

management. In all these cases most rapidlv growing industries
management seems to have been and undoubtedly our most prosuccessful-largely because con- ductive one. The labor force of
^tl0ns had became s0 baA tbat scientists and engineers engaged
the management saw no point in in research has increased from
attempting to operate the p ant about 87,000 in 1941 to 122,000 in
until the union was willing to per- 1946> and 192>000 in 1953.5 In the
mit management to do its job.
five years from 1948 to 1953 the
Although considerable progress

bale has been made in restoring

ea^r agement's opportunity to

management to'take a strong
stand against slow-downs and

man~

the

use

^tasto beToTeTTueaTt
iar„e

,

,

.

.

doubt that at

pres-.

gfw facVSaTthe n^iiberbf sep?rat}?n of

tbe Jools of management. I-think

never

T

,

.

is no

thP^^wthof mankind has ever known. Tne
,°* rapid rate cf change has us mi-,
^lineer* En- methods. ^USineff °PsrfJons ancb
P3Ci °a
engineers. LnOne effect is the partial,

u^^that

new

long and costlv

cases

g

the job

There

.

fun<tfons pf gen-,
PoIlcy™akm2 and P3l!cy ex"

wlth considerable ce-centralization of the execution of;
policies. It is obvious.that in a:
ecutlon

changing world the function

of

policymaking becomes at onee:
persuade local unions ;
Present year more important and more diffi-than in 1951-52.4
Graduations cult xh/men who perform this;
11 . -n s
? from engmeenng scihoois last year function in a ehanging world

movinff

man on

i^e

o±

will probab y grow ent we are living in an age of far)
Ore reason for th^
£ i^olo-LCal £bailge tban:

^se t0 tJnd ,a l?F readin, ex- aa^ c™e™eReoperations ^The^war Id" bv^OS^thlv
from^hi^one migW the
them
nlants
wair, and by 1958 they
^xpected to increase another
some sort is used ratner tnan £ and Taking a f^esh start But in
an
strikes
Zu
|^e°tha? f new standard is set. have befn necessary to enable uTTwiTTe ancc0eWaUtederbym?h;
nlTsTandTrdfs^t'
suppose tnat a
hou.r,wl11 be accelerated by the
not accePt **• Suppose that he

capacity

cases

some

Pc9l

productive

rm,

outPut

et^grie^ne^edu^
Bdt engineering school enrollmanaTeS
ments are rising, They are almost

u

tne

,

r

I believe that the

manage

turning point occurred about 1949

change from personal observation a considerable
number cf companies

to
or

size

the

the gain in output per manhour. . economy, one must expect tne
The labor force will probably in- money demand for gooas to grow
crease faster in the next 10 years even faster man the supply. 1 nere
than in the last ten years because are several basic reasons tor this
the effect of the recent upsurge belief.' One is that technological
in population upon the labor change, by introducing new prouforce has not yet been felt. The ucts and new methods, will in-v
big growth in the labor force will crease enormously tne oemand ior:
come after I960.;: Between 1950 investment-seeking funas; a sec-',
and 1955 population of 14 years ond is tnat tecnnological change,;
of age or more, from which the by making present goods obsolete
labor iorce is draw"* increased and by introducing new goods,
6 6 million; between 1955 < and will keep down the rate of savings
1990, the increase will be 7.5 mil-; a third is that the competitive
lion> but between 1960 and 1985 nature of consumption will keep
it will be aboufcil0.8 million. The down the rate of saving; and a.

proportion of women in the labor fourth is that the bargaining
forc? wiU undoubtedly continue p0Wer of trade unions will con-:
\° rise and to augment the labor. Vert technological progress into,
force, ^cause this is; ai long-term higher wages causing it to pro-!
trend that does not seem to have duce higher money incomes ramer.
eXrw™t nlrBmaniiniir h** hpPn:an lower Prices•
^
If rniS
vn
P; t
restoring management's f ^^ ^
ratP of nntniit

tions—to assign the work force, or 1950. I say this because I know
them when conditions

of'contracts' ^ for

number

(2)
(2)

the

spurred

[n negotia- I think, in

extent

..

management*

(1) Is the plant located

that the practices

say

are

ment'

The

possible.

not

one
or two organiza- efficiency.
But the minority of
tions has nothing to do with this, plants in which unions have seri^
p0Sifl0n cf manage- ously impaired the ability of manment in the day.to.day operation agement to use the ordinary tools
of
plaritSt
The most important of management is not a tiny miissue in industrial reiation3 con- nority. It is a fairly large minorfronting
management
today
is ity—large enough "to present an
one
that
receives
little
public important problem.
diSCUSsion and that crops up only
Some progress is being made,

CIO

prac-

that almost as much outbe obtained in 35 or 36
hours as previously in 40 hours

tices,

But wnether the AFL or

tional.

a re-

vision of loose standards and the

do'

i

influenced by the pat- that I have described prevail in a
tern depends more on where the majority of plants. And the plants
plant is located than on whether jn whjch management's efficiency
the union in the plant is affili- has been impaired are offset by
ated with the pattern making na- plants in which - unions have
wages are

more^exten-

L?Ln
intensive use

with

dustry, the question of how much

pend largely upon the growth in be expected to raise substantially

flunk and reflect,

they also;

and

need help from staff departments.;
of

number

An 1 increasing

com-;

panies are modifying their
nal

structures to relieve

nniipVmnkpr!

nf

Pn„ti?,P and^to

top.

rp^non-ihiliiv

increase

the

for

helry

routine ancl **? inc^e.ase the helpw

that they get in making decisions.;
' An increasing number of com-'
panies are setting up planning de-:
partments which have the respon-:
sibility of doing continuous

research on long-range technological, market, and socia trends/
and calling management s attention to the significance of these:
trends. And a growing number oi;
enterprises are making regular■ :
though tentative, projections , of;
sales and capital expenditure giv-:

increase in the .number of en- mg management perspective for;
gineers and scientists engaged in three to five or even 10 years;

research was nearly 12,000 a year, ahead.

on^ °r W f m°nth'

industry

imoortant

and

need to have good opportunity to:

ih

e

-

"Finally, there has been rnt
amazing growth of executive de-,

affiliated^ with !he «
gatUegiT
gr°Wth"
VI
pr=s ia recent:
union use the grievance procedure
ThPZ
years. The American Management:
reiSTeSL
provided in the contracts if, the T°Ts' in which ton Sagement
You may ask whether there are Association recently found that
the^ DkntThonHhecompany has many customers Fs net
of how
far
thei- sufficient Pe°P,e of the needed more than half the companies con-:
plant

seem

nattorn

*Pttin«

iininn?

wnrcp

still

arp

manv

pnter-

in

aware

TTT rather than a few, and if it makes
that found fn ?he pattern! ? product
tbat,is ^what difsetting union?
ferant fr°m that made by its comeeneral

T,

tvne

,,

xnree
three

nf

,

.

queTTonTis
questions

nw

L

InZrPr

Pfh

tr

raf fUfha government or W,S P.roduct
large part,of to two
to the

•

1Sf

r

a

'Tes'^ald the
^ueS?on V
nattern fs

questions is
the

to

the

answer

second

likelv

lowed—that
followed

even

it
it

fs
is

to

w-

he

fn\

likelv

likely fn h«
to be
if the plant is not

Pattern-setting industry

fZ
tern

is
is,

setti^^lor^r^rnv'H^

niZi is
i
plant

!

in

an

managemeni
or

Wud.vr three Iarge buyers

d°U!
An th? lndustry ln

h

P

But if the

Yts" the patycs,
the

is

y I0
r6- r

n

petitors.

.

prov.dv.d the
the
where

area

and if there
are- others who can supply the
identical product which a slowdown or a wild-cat would cut off,

^anagement 1?ay .lack the courage
lu S an? up f°r lts riP±ts UDder
the: contract and to insist that the
"T USu the ?nevance procedure
rather than direct action.
Once
the union

senses

on

to

back

+

in

pf, ?.

P making union, imposed lest it provoke a slow
1Sf n° !f
down. Standards are bargained—
!n aZ ^
tbough th? formahtv of taking
tt
.
wblch the time studies is still continued,
^
"
ng un|on bas nu" Committee members roam the
thn,
tf
t then even shop, not to investigate grievinougn tne local
i

nZttJZ
int

^

u

i

belongs

pattern

-

setting

national

to

the

union,

anccs.

have
nave

moderate

is

toPtalfe"a
to
take

stHkP
strike

nf
ot

in

order

to

cians

that ior piants outsidp fVin notmat for olants
outside tne pat-

making industry but employing the same general type of
labor

as

the

stir

un

trouble.

A

grow up—millrights refuse

done

tern

pattern-setting




in-

[n

slow-downs and

have gone in sacri{icing efficiency
order

wild-cats.
<?PnPvnllv

a

avoid

to

fresh

Managements

wmdd

look
be

L0

sure

policy represents

anCe

between

quite

tn

takp

of

the sales depart-

ment's desire that interruptions to
production be avoided and the
company's need for low costs.
V
Both the productive capacity of

economy and the demand for
goods have been growing rapidlv,
and they will continue to grow at

substantial
rate.
Productive
capacity will grow at an average
annual rate of around 3.5% to 4%
a year—a little more than 1% a
a

year because of the increase in
the labor force and around 2.5%
to almost 3.0% a year because of
the growth in output per manhour. These rates of growth would
make the gross output

terms

of

present

in 1965, in
prices, about

$535 billion to $570 ^billion.
which

work

and

electricians
j

v,

de..

put will
i.,,.

The

.

the

,

little faster

electrician)

,.g

..

,

g,

a

level

each

on

a

one-man

job

waiting while the other does

a

than the

slow

Capacity

^

to

graduates score from 88 to

l27

127

Programs by the American Man-;
because the companies:

surVeyed

SW do not trial Conie™nce+ ?oard 0nly
pLp^ IIlWp 7 The mTZher nf years ag0 dld n?1 dlsco.ver enough"
^ Infrent*
male* €xecutive
devef°Pment Programs
fnliff he Inerpnspd hv 52% w?th lo form the baS1S
w
3 reporL
could ba increased by
without. taking anyone with an m£core not equal or^

rise

output, prothe price

in

produce

will

de-

VIII

'

veliigen.ue

.

i do not know whether this pic-.

pfiPL ^Lnnt^ Tn0 nthZ/wnrd^ ture of economic trends impresses
college graduate. In other word*,
as cheerfui or as somewhat:
collegeJ eatr^ces eould be in- disturbing> xt has been my intencreased by more than 50% Wltb" flon simply to report as honestly:
out ^ ^
g+if sm§le male Yba as I can what I think I see. It is;
yvould lower the average level of obvicusiy a WOrld in which our
mtelllgence of tne student body. abjmy to adapt ourselves to new
A^^g malas
conditions is becoming more and
m^elllgence (an A.C.G.T. s.ore of more important. From the stand-.
J SL ® f
"ioS 5 point of consumers the picture is/
*op
in mtelligence), 43 /0 do j think, on the whole a cheerful
n°t even enter college.
Qne
a rapidly growingabundance
\

Although the increasingly rapid
development of technology must
—~

tifc

c.

.

.

_

_.

PersannefRe^ources^p? T'

'

5 Economic
Report cf
January, 1954, P/i63.

"""

the

President,

w

Spedaiizzd

in

a

.

,

Talent™p"C3i4.

0f

goods

B

esources °

is

in

prospect.

But a

gr0wing abundance of goods raises
important philosophical and moral;

issues. It creates the danger that;
We

shall

much by

measure

progress

,

too

material yardsti:ks, and;

develop bad scales On Values.
v

6 National Science Foundation, ibid., P.

e6^n
to

had systematic!-

°.n th?

gross national out-'
4U. s. office of Education, Engineerreach $400 billion. The in« Enrollments and Degrees, 19S4, and

electricians have done. The result
is two men (a millright and an

ducing

f'e"dsts"ie T®
answer is an

a survey

Tv-Xn The P.r°gra^ <$' developing execu-:
Jmnhath? "Ye- " out 0f two concerns have suc.r
^ FT does not mT that °T
empnatic
Yea.

Army Geuneral Classifica- agement Association were not:
in their plants
tj00 Test (100—the average), and necessarily representative. It is:
that
company
the average. score of a11 colleg? significant, however, that a simi-'
a
prop°r
baf- graduates is about 120.6
But jar survey by the National Indus—
realities

the

industrial relations
iust

wisp

hp

at

h° d° w0rk..that that it is electri- present year will be the first year
,tbey baye always in
asserting

a

duration

to

multitude of extra demands grad-

C34? usuady av°ld ually
may
may

but

n,ant managers

g0 from bad to the

management

ponfrppff^nH2^"11]10!!1
many them up and the foremen cease to
ff rlffvM
-i16
?£ ^ployed be effective representatives of
J fi fi^ rJHJf
^ belong- management.
Discipline is not
•

sub! ability to Produce a large increase traded in

Prdinates ofgthe

pro-

worse. The foremen can no longer
count

the

and

mmiaaers

that management

is afraid to risk the loss of

duction' things

Diant

vnnng

neoole

the

underlv-"

* or young Pe"P e
pupprZ
mg economic trends are cheerful,
.

The demand for skills of various

.

Volume 183

Number 5516...The Commercial and Financial Chronicle

kinds is rapidly growing, and this
better

means

and

better

tunities for those who

industry. For

are

oppor¬

entering

business executives

the world is

becoming a more and
challenging one. Certainly,

more

tne

executive's job is not becom¬

ing

easier. His opportunities to
make mistakes seem to be
grow¬
any

ing, and the
takes
the

are

consequences of mis¬

always serious. One of

most

cheerful

of> the

parts

whole picture is that business

ex¬

ecutives

becoming better and the economic—or cost savings—
of their growing re¬ point of view.
sponsibilities and are taking steps,
Computers can solve in a few
a
through the internal organization hours
complicated
actuarial
of enterprises and through the in4 problem
affecting millions of in¬
troduction of executive develops surance policyholders. They can
ment programs, to meet the high handle payroll accounts, complete
responsibilities
that
are
being with paychecks (deductions
better

are

aware

thrust upon them by the technolo¬

gical

revolution,

the

and

great

changes in social conditions
economic institutions.

and

noted) for thousands of employees.

They

making possible

are

vari¬

a

be

done

—

either

because

Continued from page 32

form.

proper

It

carving
its
of estab¬

wild,

young

giant

niche

at

is

not

a

expense

lished

the

habits.

Television

rapidly

grown

has

because

many

industries

pro¬

'was

"servants" which have

last

created

filled.
is

time

a

That is

the

have

to

vacuum

be

tradition—that

our

America

way

.

has

always

introduced

of

the

dealers and
that

the

developments.

believe

in

in

November

Reports

year.

tions

setting

from

Hoffman

a

-

Many

forecast

because

of

.'television;

facts

of

however,
television

that

are

wnetted

appetites for

tensive

news

than

death

magazines and books

newspapers,

the

the

analysis

coverage

television

itself

in¬

more

a

extremely
Hoffman

once

all-time high

cf over 54 mil¬
copies dai.y at the highest
average price
ever
paid. Newspaper advertising revenues soared
to an unbelievable %V-k
million.

Magazines'were
radio

Television

ago.
kick

the

years

to
what

supposed

was

daylights
their

creased

fast

as

kill

to

of

out

left; however, magazines in¬

was

-

supposed

was

medium that

a

circulation

twice

the population grew and
their advertising volume

as

is

standard

receivers.

this

factured in their

have

an

indicate

phase

We

of

our

increasingly

is

plants. I

own

proud

to

report
the

of

one

be simulated

studied

while

the computer and

on

without

stractions

numbers, rather than

or

measurable

quantities, as input
data. The digital can be thought
of as a high-speed automatically
operated desk-calculator. It peri

two!

ical

computations

take

an

or

which

cler¬

would

to solve.

Einstein

months

and

The versatility of digital
puters enables them to work

com¬

am

We

rapidity complex

mathematical, engineering

years

that

first

having to
build and test the airplane.
A digital, computer accepts ab¬

forms with great

Only two companies are cur¬
rently marketing 21-inch
color
receivers engineered and manu¬

and

lion

sec¬

from

important in 1956 and 1957.

circulation of newspapers reached

gave

of

Colorcaster

television
that

—

industry

new

color

all

country—both
consumers

business will become
*

"measures"

the

grown,
expanding
its
economy
and creating more room for new

Unfulfilled Dire Predictions

in¬

digital computer "counts." In
of intensive research :and
an electronic
analog computer, an
development of color. Our com¬
entire physical system—such as an
pany led the industry in the de¬
velopment of the new 21-inch airplane in flight, with varying
take-off and landing shocks—can
simplified color receiver, which

American
new

log; computer

years

duced

cording system with
In

virtually

a

com¬

-

low

such

set manufactured

become

by another

com¬

in

their

standard dictionary.

any

But' soon,^

automatic

warehouses

and factories and retail stores will

the

rule

rather

than

the

need engineers and sci¬
our
industry for it is

creative

door

have

decisions

on.

the

who

are

oper¬

who

company—men

banking,
We

have

must

who

men

under¬

stand

inventories, whose responsi¬
bility it is to make certain that

the

raw

that

A

man-,

materials

production

specifications

our

it to

sale

us on

available,

and

deliver

schedule. We must have

who under¬
required to get the

managers

stand what is

—instead of waiting two or three

are

buy the best purchased
parts at a fair price from a reli¬
able vendor, that we pick sub¬
contractors who can perform work
we

to

recorded

experts

accounting, credit,
investments, leases, etc.

minutes

the last

industry. We must

an

fiscal

agement, for instance, to key pro¬
duction directly to sales:—within
of

opens

electronic

experts in

are

tion, computers place management
squarely in a stream of current,
working information, which can
be
used
almost
immediately to
and

that

the

of

responsible for the financial

fact and its observa¬

enables 'general

the

ations of

of course, is

actions

genius

all

to

do not make

computer

it

miracles of today. Engineers alone

product out the door once the en¬
up.
It enables engineering man¬ gineers deliver the drawings and
Certainly,
agement to predict and direct en¬ the bills of material.
gineering results more economi¬ one of the most important ele¬
months

for

sales

figures to catch

ments in

cally through simulation of the de¬

our

business is

our

mar¬

keting organization—the men who
of actions based on such current develop and implement our sales
information can save incalculable and distribution program, the ad¬
amounts of money.
vertising experts who make it
\
their job to get the new products
You are probably asking your¬
of the electronic industry into the
self "Where do I fit in this Elec¬
signs under consideration. Results

-

s

,

hands of the ultimate user.

tronic Age"?

Certainly it offers a
challenge "to the engineer and the

Coast-to-Coast
Science

as

fined in

tion which will
which

has

out-strip anything
occurred

ever

before.

is

Competition

thing

one

and

pro¬

duction

capacity and markets are
quite another. The nature of our
activities

industrial
any

area

can

is

such

that

easily out-produce

the immediate needs of a restrict¬
market.

ed

After

all,

once

you

have made 5,000

widgets and "de¬
bugged" them, it isn't much more
difficult to make

100,000.

or

Through electronics, we seek to
erase repetitive, boring, mundane,

:; exception. Miles of production ef¬ hazardous, monotonous operations

-

we

patibly

the
pattern of most other
companies in this ■ business and
put the Hoffman, brand on a color

pany.

Yes,

the

Dynamic Management

base

make

you

tool and not your master.

entists

•

every

or

how

use,

Fiscal and Engineering Personnel

computer.

with
existing
systems, scientist—but what does it offer
payroll, inventory control, to anyone who is not interested in
to demonstrate -the effectiveness accounting, statistical analyses and the technical end of the business?"
of this spectacular new medium, market forecasting, which are all
My answer is that you nor any¬
sales would follow rapidly. For expressed in digital terms.
one can escape the fact that elec-1
this reason, we have been willing
Certainly* one of the most excit¬ tronics has become an indispen¬
to invest our own money in the ing outgrowths of computer de¬
sable part of our everyday life.
development of color from the velopment is "automation" — a About us at every hand we see the
science almost too new to be de¬ elements of an industrial revolu¬
very beginning rather than to fol¬
consistently believed that,
programming was sufficient

best

your

field, automa¬
tion will in a very short space ef¬
fect savings of million of dollars
—if properly handled.
v

condition

its products to

convert

you

the

elapsed time of compositi on
analysis has been reduced 75% by
combining an automatic data re¬

of

broad categories;, analog and digi¬
tal. In simplest concept, the ana¬

Challenge of the Electronic Age
its

how

Beyond all of these advantages,
one unique result of
volved, or the lack of equipment computing systems — dynamic
to do the job.
[ •: management. By eliminating the
V
Computers divide into two lag between the occurrence of a
the vast quantity of the data

in

pay-load, between design idea and
design reality. Take oil refining:

ety of engineering and computa¬
tional feats which could never be¬
fore

-/v-U'-y

43

(1331)

10,000

or

50,000

Since the pressure to

is economically dictated,
quest immediately begins for

expand
the
the

absorption of additional pro¬
Although our production to date fort, product handling, shipping with devices which utilize syn¬ duction
capacity. To do this usu¬
and receiving are being slashed thetic
Books are has been
intelligence embodied
in
modesty We have estab*
ally means the penetration of dis¬
booming
too.
Lending
libraries lished a separate color television daily by firms all oyer the coun¬ fiendishly clever compact elec¬
tant markets.
For any industry
all over the country report book
plant in Pasadena and plan an try. Computers are the heart of tronic devices. The inevitable re¬ this can
only be done if the prod¬
withdrawals definitely on the rise.
aggressive assault on the color this automatic revolution. They sult is a higher living standard uct involved has a "high value
per
Television has brought pianos market.
responsible for closing the Tor all of us with more produc¬
Here in Los Angeles, we are
pound" so that the shipping cost
back into their place of honor in estimate
gap
between drawing tion per man-hour than ever be¬
that we are getting ap¬ yawning
is a small part of the price. For
the American living room with
proximately 25% of the 21-inch board and finished product, be¬ fore. The challenge of the Elec¬
more people taking piano lessons
Continued on page 44
color sales at the
present time tween laboratory and approved tronic Age is in how you meet it,
trebled
in

the

than

last

10

years.

before. Increase in the

ever

popularity of • better music -has
become spectacularly apparent to

although

overall

market is

not

volume
great

as

in

this

it is in

as

eastern cities because of less color

the box office for between 30 and

programming on the West Coast.
NBC's
recently announced $6
ballet and, concerts—more million
expansion
program
of
than go to see major baseball and color facilities in Burbank will act
college : football combined.< And as a powerful stimulus to the
cur
country gives more concerts rapid development of color tele¬
million

35

people

a

attend

year

opera,

;

of the

all

than

put together.
;.*■

People

•than

rest

the world

cf

A'-

.

are

in the first free-

spending days after the
obvious

flop

fact 'is

faster

longer.

—

that

The

bad-shows

shows last
people
demand

good

Today

entertainment.

better

war.

When

they

thev go—when thpv don't,

get it

they stay home—and the fact that
television is free is not the impor¬
tant factor.

itself

in

has

ex¬

panded the entire familv's appre¬
ciation

of

entertainment, current
events, dramatics, sports, religion
and every phase of everyday life.
This
a

rew

medium

has laid down

challenge to these people

peting for the

com¬

dollar and
general quality

consumer

that has raised the

level.
will

add

entertainment

phase of the elec¬
industry within the fore¬

seeable

future.

There

has

been

discussion about color tele¬

vision—when will it be here? How
much will

Will it replace

it cost?

black-and-white TV? It
desirable

to

take

a

this

discuss

to

few

might be
minutes

exciting

new

medium.

viewer

can

on

see

minimum of three hours of color
every
night, you will
sharp increase in color sales
and down the Coast.

see

a

up

I

believe

it

Color

and

Sets

has been manufactur¬

actively

merchandising

21-inch

color television

for

past

the

year,

receivers

following five




HIGHLIGHTS OF REPORT TO STOCKHOLDERS

is

important to
clarify one question in the minds
of many consumers in regard to
color

television. I do

that

it

will

obsolete

ever

supplementary,

at

any

rate,

monochrome
its

own

and it is

no

television
it

was

to

•

Taxes

85,243,407

9,949,837

on

3,739,317

5,270,000

1,912,506

4,679,837

1,826,811

income........

NET INCOME FOR YEAR

will watch color
color receivers and
programs

......

sets.'

Each

be

TV

to

replace

is the electronic

data-processing machine — the
"giant brain" of -newspaper and
magazine columns. The impact of
this development already has been
tremendous.
Not
only
has
the

speed of electronic computers cut
of

hours

time

of

from

6,250,171

.....

$

6.25
749,267

631,536

$

1,835,922

$ 1,258,822

scientific

important

research projects—the capacity of
these
machines • to
handle
vast
amounts

of data is now offering
possibility of revolutionizing

the clerical side of business

from

(Not including

2.89

$

nonrecurring credit)

Shares outstanding at
Industrial Lift

Locks, Door Closers,

-

One of the most dramatic sym¬
of the Electronic Age which
us

$

NET INCOME PER SHARE

Trucks and Hoists

has overtaken

.....

MANUFACTURER OF:

all-purpose than

expect

—■

$ 1,826,811

NET INCOME AND CREDIT

medium

special requirements
more logical to expect

to

1,570,334

Nonrecurring credit

on

bols

the

96,028,239

.

Gross income

entertainment

Data-Processing

thousands

$88,982,724

we

on

black-and-white
has

$105,978,076

receipts

Costs and expenses

black-

medium. In the foreseeable future,
programs

1954

1955

SALES and other

believe

not

and-white TV but will be, instead,

calculation

Hoffman

ing

a

programs

im¬

portant new markets for the home
tronics

much

medium here

mass

a

radio.

television

Color

-

a

a

Television

as

the Coast. When

discriminating

more

they were

vision

YALE & TOWN E

Dec. 31

Cash dividends declared
Income reinvested

.

.

.

2,843,915

567,989

.

.

.

36,936,294

34,586,185

......

$ 52,274,998

$43,234,675

in business

Pumps and other

Payroll and employee-benefits

Hardware Products

Stockholders' equity

Powdered Metal
Products

THE

YALE &TOWNE

MANUFACTURING

COMPANY

DIVIDENDS

CASH

paid in

Executive Offices:

every year

Chrysler Building, New York 17

since 1899.
13

Next

75t

quarterly dividend,
a

April 2

plants and Research Center in the United States, Canada,

England and Germany.

share, payable
on

stock of

record March 15.

Licensed

manufacturers

in

Australia,

Belgium, France,

Italy, Japan and Spain.
Sales

representatives throughout the word.

44

The Commercial and Financial Chronicle..

(1332)

Continued J
irom

43

vaqe
^
y

is

not

Challenge of the Electionic Age

merely

"keeping

of

case

a

with the Joneses."

up

This velopment of a stable color tele- we need

others have, we want.

see

The prod-

ucts which make for better

getting greater
"exposure"—a term

and

are

living

greater

all

you

rec-

It is a normal process for each ognize as significant in any marNew York by a
generation, as it improves on the keting program.
California is possible.
physical equipment of the previA place for you in the electron- ous generation, to feel that there
Government s Role
ics industry requires hard work is a great hazard that these new
Those of you who represent our
such

competition

in
manufacturer in

equipment,

of

•

,

.

mind

attitude

and

I

anct

do

not believe that it is necessarily

_

Hand ol Man

essential

advantages
are
tangible and measurable but mere
advancement in
things
is not
Technological

menial

to

do

work

tortuous

to

mentally strong
as

morally and
individuals or

as

nation.

a

and

be

tion

American

to

taining to the national
business

in

We

ures

look

to

which

upon

to

planning.

true progress.

govern-

and

fig-

project

our

You cannot
our
business,

Our most advanced
I recommend to you a closer ac- tell us how to run
electronic phenomenon can only, quaintance with this new elec- but
you can give us some of the
obey; it cannot originate anything tronics industry.
It offers you tools to enable us to do a better
of benefit to anyone,
Only man much in the way of personal op- job of keeping the wheels of incan do this. The electronic
brain
portunity. It will be a vital factor dustry rolling and the pipe lines
that can detect its target and tire in your life and you should know 0f distribution filled and flowing
a weapon that will seek out-and
as much about it as
possible. It in the right direction.

um£t^°^mldPeretyoahelpesolve iS

h

the

society

of

problems

The

™gio%ictu7e^n°yVrX& roTohme
known

television

as

be

must

y0U1'S t0 USe b°th in its P.resent

*orm and *n whatever form it may
take in the future. It can Co much
for

society in eliminating poverty,

mwraavawB

Industry !ooksT+ *° government
for this service. It is not my place

in

where you come in.
If
take the goods our factories turn out, and market them
to the world in sufficient volume
to keep our employment high and
our standard of living at a steadily
rising rate, then, continuing prosperity will be ours and all the
good things that go with it.

^

Television and >-rraaiaMVV
Appliance
|

.

,

sold

and

about

i

,

tial

aggressive

«r?reA,than in any pr.^vio„us yearWhat s

Ne-ir

selling

and sound merchandising.

the unit ot sale an
rising.
Custo-

more,

mers

is

now

consoles instead

buying

are

of table models, they are buyins
higher priced cabinets with tine
wooc.s
and automatic tuning de-

low-prS iTinch
The largest selling

business and industry
x nupe m-i

FederafgovernmenfTre

the

believe

forces

are

that

pre-

at^4n0

^

and

known

many

positive

n

.

.

We

are

phenomenon

0ne

in

There, too, the demand is not for
the price

leaders, but for the de-

models.

luxe

The

biggest

America is not

$19.95,

but

radio

selling
a

m

little gadget for

fine, leather

a

cased

portable that retails for $40.
I

merchandisers

country
wagon

dise

say,

that

cessful

at

of the

the next few years will be
of the most important factors

expanding

cannot

sue-

of

this

or an

not

increase of 20 million.

merchants who

have been

selling are beginning to see
the light, and are now the very
ones who are using all their mer-

before; not at cut prices
sound profit margins.
These

are

highway

*icm

which

and

you to estimate
which this increased

ford to ignore.

but

at

we

as

pte the change that is coming
everyday mode of living,
Our population is going into the
suburbs by the millions. The importance of this migration is not
over our

in

involved,
tyoe

new

the
-

in

new

the

of living
new

roads,

homes,

shopping

are

people
this

effect

will have

New

economy.

schools,

of

numbers

but

centers,

obvious

the

on

new

re-

quirements'.

But,
at the
same
time, this migration is creating a

With this

and

us

to

prove

are

of the better

enjoyable living.
meet

this

hv

r-rrf-1

better and

It is

demand

further it to the best of
nrnlvd-

rf




SrnZhm

be

acc0mplished

overnight,

h

m b

it

win have

aiready

somethina for

tremendous

a

impacyt'on

Some

and

television

our
our

up to

and

to

ability
nntoo

that

a

one

de-

So> 1 say> the responsibility for
maintaining good times, prosperity
gnd eyer rising standard of liying
throughout the world, rests in no

™asure on the shoulders of

£

business is the mar-

~ial s^ste^
to

therefo?rth?t

reason

world economy at a hlgh Peak> so
that we may ^ain the everlasting
Peace for which we all pray.

and merchandis-

.

.

T

„

,

Joins Income Funds

advertisers

experimenting

are

vou

with

(Special to the financial chronicle)

"^"^o^te™"
vantage of color television.

«s
Its s newhaven,conn.-seymore
Miller has ioined the staff of
almost limitless; Income Funds, Inc.,, 152 Temple
on^ Swm ecolo? ™fev"ston°nbe a & 5e
^

P°ssibjlities

new business for the electronics industry, but it will open
avenues

new

for

advertisers

of

product which can benefit
from eye-appeal.
Color television, I believe, will

every

find
and

ready market once
production p r o b 1 e

a

solved.
a

our

cost

m s

are

When sets are available at

price the public

can

^adde^ ^ Reed, Inc.
r

i

i

.

federated Management
(Special to the financial chronicle)
WETHERSFIELD, Conn. — Edwin F. Higgins and Robert F.
O'Brien

are

Federated

now

affiliated

Management

with

Corpora--

tion, 63 Wells Road,

afford, color

television will sell in tremendous
get the greatest value it has ever
received in entertainment. Blackand-white sets will move into the
rumpus room, or an up-stairs bed-

I don't believe they
In fact, they are

to come.
'
It is interesting to speculate on
what effect color television may
have on the 1956 presidential

and

vision,
ever

will

be.

acquiring new strength and importance' in the over-all merchandising programs of our major industries

and

campaign.

Coburn Middlebrook Adds
^

'

WATERBURY, CONN.-Milton
M. Selison has become associated
with Coburn & Middlebrook In.
corporated, 20 East Main Street.

vision

services.

new

way

acquaintances.

This

ether fact which has

a

is

an-

most im-

portant bearing on our market
analyses for the immediate future.
ixr

Ve

i

,

,

ha\e learned tnat what

we

Broadwav

received

perhaps

its

Npw

pjtv

York

uprfJthPA J^ri
'

Black-and-white tele-

SlZ

ran'

97

™

Sto^k

admitted

IS

P

big-

i TVnrhner

i

to

conventions, and

^runwaia, Josepn d. kenenner 10
Sei}eral partnership and Robert jii.

Many of us are anticipating with

the election night coverage of the

J>lme and Aaron F. Uevmson to

great deal of interest the emer-

Witn color, our candi- limitecl partnersnip.
dates will have to. give careful
11
*
t\cc
consideration to their neckties.
INew Lundborg Urrice
Some colors on television are cerCARMEL, Calif.
Irving Lundtainly not flattering. They will borg & q0 ' members of the New
have to look to their attire in York and San Francisco Stock
general, and so will their wives. Exchanges, has opened a branch
We may even be in for an era of 0ffice at Dolores and Sixth Streets
elephants and donkeys in varied under the management of Rollo
hues. Certainly, it will never do H Payne. '
'
for the Republicans to have a
'
"
drab, gray elephant on the color Osborne & Thurlow Office
television screen; nor, for the
Democrats
to
display
a
dull,
Osborne & Thurlow, members
brown donkey. The effects, to put of the New York Stock Exchange,
it mildly, may be startling. Color have opened an uptown office at
television will bring a realism to 113 West 30th Street, New York

gest boost from the broadcasts of

Color TV
a

the 1952 nolitical

of color television on a full
commercial scale. The influence of

television, eventually, on
lives, on the entertainment
habits of our people and on the
established forms of advertising
and merchandising will be one of
the most important developments
in business during the current
decade.
We believe that color television
will be one of the great new businesses of our age. Likewise, it has
been one of the most difficult
problems with which our industry
has ever had to cope.
our

returns.

_

At Philco, we have spent more politics never before experienced.
than a score of years and millions
of dollars in research on color

.

television, we are expeiiencmg
our
costs^ today. These
costs are not only in research, but
also m engineering and m producf1?1?*, „Q. are right now m the
™ldsf of incurring those tremendou* startmS costs wtneh go with
every new Product. It will be late
ln 195.6 ar 1^7 before these costs
come mm balance wuh production
•

We

yield

enthu.Sia.un

•

to
no
one
m
far the eventual

our
de-

City,
and

>

tivity. In the production of color field of marketing—and particu-

af-

tures which
more

and

for better, easier living.

cannot

I submit that these

make for

irrSer

recognized

the devastating effects of
pression

Thif is a long> hafd process. It.can- *™a11

Merchandising s Role
television. That research is conI have touched on several aptinuing with ever increasing ac- parently unrelated factors in the

that our custodemanding more and
things of life;
that they are quality conscious;
not price conscious; that they are
ready and willing to pay for fea-

examples

mers

™

vast new demand for everything
manufac- that goes into the home to make
of suburban
living — which apparently the
American people have adopted as
a permanent change—has come a
new social atmospher^. Our peopie are visiting more; moving
about more'among their friends

more

Because I

color

posts alon* the

marketers

a

whei e co!lor

broad fieid 0f merchandising. This
has shown, on the other hand, that
other media of mass communication hoidnn impregmible position
jn advertising> Our daily newspaperS} our national
magazines,

facilities.

our

existed

and

marketing

gence

oping highly trained outside sellir.g crews whose mission it is to
none

radi0

population will make upon our
manufacturing and distribution

alone

where

our

probabiy expect me to make
specific reference to that great
service as a marketing tool.

difficult for

chandising ingenuity to sell up to
a higher and more profitable unit
of sale. Many cf them are devel-

sales

on

you

It is

right on the band- ' You need only take a 10 minute
selling quality merchan- i drive
from
the
heart
of
any
profitable margins. Some American, metropolis to appreci-

count

turers

full

are

reputed to be the leaders of dis-

create

the

We

economy.

our

impact of
this population growth, but we do
know that our population in 1960
will exceed 180 million persons,
assess

the demand

glad' to be able to
the hard-headed,

am

also,

to
Sinf
iaJa a(*73"^*° JL?™!
^le^ls^" receivers

will

well

™

ranges.

electric

in

! teei*our manuiac-

is

room, while color takes over in He was previously with the R. F.
the living room. Our industry will Griggs Company.
m
future'
direct mail, and others, have not enjoy a vast new market with a
1
The lncrease in our Population been supnlanted by radio or tele- high unit of sale for a long time Jay W. Kaufmann Admits

we capitalize on these new, oppox-

similar

a

h.mk

^ -of vltal P1"

portance in determining whether

over

...

experiencing

.

,

Q

!yDb'

It

sagging economy in the United
States, or any part of the world
breds discontent. It is on such
discontent that Communism and
Nazism thrive. All the diplomats
the world, and all the interna—
tional conferences, cannot counter

^ SXtaT'K 55^233" The SSbSf wfll

tP

sue-

^fnl

having—

brought abouh in their

lab.oratories' Thf.

as

trLt mmhanditinff nromotion
whfch has been tremendously

are

impact

represent the television industry,

(building up to insure

mtieS iTlffo/
& Say

is

which

have—an

distribution operations.

teWe
models in our

inHdentallv

factors

will

manufacturing,

Future

H that i.» the marketing pattern
today what can we expect in the
t
a »
y a s to come.
We

rapidly.

recti0n

I have mentioned several gen- great
eral
or

mndel0f nvir^OO ^anrMn the ^UStrieS- Whole new. concepts of
Zlitli Hpmfd irour 24 inch Tng ?re. now emerging fromi?ur
whirb

forward

move

programs.

...

.

markets,

eight million television receivers,

television

not

progress is being made in that di-

ing

InflUStly S UynamiC future ^igiVnewdemaS*.
...

manufactured

win

advertising

government biaiuuu.

I'll 111*A

J

the

broadcasting networks present
color television progams at more
frequent intervals color television

our

pro-

nounced

I*

M

until

to^cLn ^

mentioned

J

price

can

w
S* can"
accomplished V
Peh ^°^n^Aca"^iai basty enthusiasm or unwarranted P standi

bg

6

ii

I

a

is

you

***£*£ V^cansayls

comes

page

at

time,

same

tke evolutionary processes I have
become more

-use

from

tbe

ment to business and industry can
improved As the economy be.
more complex-as some of

u nrnnprlvt
it properly!

„cp

negative.

Continued

market

mass

K^saaftase oavusaest
cssssp:
,,

r

tavesitssns TTSS.TJ
FhP
the

the

to

per-

economy,

accurate facts

for

ment

forward

i

industry

economy

That

that the market can afford to pay.

contribution.

our

do not believe that color television can be an important influence
in the mass market until late this
year. There is much that remains
to be done in the laboratories of
both manufacturers and broad-

the end results of real

it may be over-drawn at times, lished function of our Federal
Self-reliance, however, is a state Government to provide informa-

keep

rolling. That phase of our economic evolution has been accomplished.The great challenge for the future is in the field of distribution,

servants of man will make them government may be wondering
soft and weak. There is certainly how all this relates to your day- casters—and in field testing—because for this concern even though to-day activities. It is an estab- fore color television is available

success are

to

vision service which will be available—as is today's high-quality
black-and-while television—to all
the public at a price our customers
can afford to pay.
However, we

willingness to live up to
capabilities.
No academic
training is a passport to security,
As in all endeavor, security and
the

and

your

.Thursday, March 15, 1956

larly advertising and merchandising, with which I am most famillar. However, they all point to
conclusion — marketing^ is
probably the most important mfluence today in the economy of
the United States Since World
one

War II. the production facilities cf

with Abraham Bukaresky
Krieger as co-

Charles K.

managers.

rame,

Webber JDranch

MERCED, Calif.

—

Paine, Web-

ber^ jacks0n & Curtis has onened
a brancb 0ffice in the Hotel Tioga
under ^be management of Lee E.
Earre^t.

New Sutro Branch
TPwnrTT1?

„

PATCHOGUE, N

v

Y

-

outro

the United States have been ex- Bros. & Co members of the New
panded until today they are able York Stock Exchange have
to take care of almost all of the onened a brancn of ice at
foreseeable

needs

Our factories

can

of

our

people.

make the goods

Mam

Street, under the

manage-

ment of Edmund W. Denison.

Volume 183

Number 5516

Continued

from

(1333)

"

Love

*

>

Lucy"

and

Pay TV
to

desire
to

to

pay

office

TV,

freedom
at their box-

preserve

your

buck

your

to

see

Ahat you

is largely a

television

free

see

first

a

movie

run

might, with subscription

that

ment

TV is

instru¬

the

make

can

other great boxoffice
a small portion

and

is

made

entertainment for

great

a
a

titled

Trailer."

independent
stations really independent, and
make for real freedom of speech
on the air.
By presenting fine new

movies

at home."

see

Subscription

it

movie

Boon to Television

a

into the movie theatre. "I

moved

22

page

'

(i

The Commercial and Financial Chronic

...

The

program,

"The
TV

Long

Long

version

has

a

production cost of about $45,000
per show.
But when a film was
made

which

for

expected

to

The

big

the

public

the

was

one

TV.

on

produced for
broadcasting day on sub¬ TV, could attract a paying audi¬
The network viewpoint against scription TV, they will gain suf¬ ence, why would producers spend
subscription TV is based, not on ficient income to make profitable from ten to fifty times as much
fact, but on the highly speculative operation possible from the ad¬ as TV does when making a ver¬
hypothesis that subscription TV vertising revenue available during sion to be sold to the public?
TV

Free

would

take

charge

the

"and

TV

all

over

of their

and

public for programs
that they now enjoy

talent

for

Claims

free.

only possible way of in¬
telligently appraising the future is
base

that

appraisal

your

have

in

existed

that exist today.

To

facts

on

the

past, or

large extent,

a

neglected

have

opponents

our

to

follow this procedure.

us consider the con¬
that I exist in TV broad¬

First, let

;

ditions

casting

Television
costs
rapidly that few
independent stations without net¬
have

today.

risen

work

so

affiliation

much

have

chance of survival. Last year, net¬
works

TV
to

accounted

billing,
NBC

national
count

85%

and

of

52%
In

TV, which

on

ac¬

total

TV's

of

usually

carrying

all

which went
addition,

of

25%

are

'stations

for

CBS.

spots

for

billing,

remainder

of

their

broadcast

This will free stations from
network domination, and will free

day.

In 1951 Zenith conducted

ited

commercial

test

of

lim¬

a

subscrip¬

tion
TV,
using
three
hundred
advertisers from the burden guinea
pig families selected by the
of supporting the entire cost of
National Opinion Research Center
TV broadcasting.
of the University oh Chicago. Each
We have often said that sub¬
family had its choice of the four
scription TV would be a supple¬ commercial TV stations in Chi¬
ment
to, not a replacement of,
cago, plus a Hollywood movie on
sponsored TV. This statement has Phonevision
by accepting a charge
been
challenged by many op¬ of
$1 per picture. Our movies
ponents. But the challenges are
represented
average
Hollywood
pure speculation about the opera¬
quality, but each was two years
tion of an industry that has not
old or more, and had run through
yet been born. Our statement is its
complete first, second, and
based on facts from the past and
third theatre showings. Patronage
present, and is supported by every was at the
average rate of $1.73
pertinent fact of which we have
per family per week, which was
knowledge.
nearly four times the average rate
of
patronage at movie theatres.
Past False Charges
Average
patronage
per
picture
First, I should like to make a was
25% of the possible audience.

you

The

to

the

placed

network

on

pro¬

brief side excursion about the

ac¬

of CBS and other network

curacy

predictions. Back in 1941 the FCC
the question of regulating
network operation. NBC and CBS

The test points to
ent conclusions:

some

pertin¬

to

recognize

the networks
accumulated a net profit of $36,000,000, while 302 post freeze TV
stations were accumulating a loss
of $14,000,000. Of the TV stations
that made money for the year, six
year,

entirely

of selling programs,
them away. Revenue

one

giving

survival. Non-affiliated stations in

nearly
.a

all

markets

desperate

are

fighting

are

struggle,

and

many

losing.

It

be

far

than

greater

from

from

TV.

It

is this sorry

which
of

has

economic situa¬

by NBC and CBS, and
placed virtual control

what is

;into

the

head

service

pro¬

seen

hands

these

and

of

heard

the

networks.

on

who

men

That

TV

is

too

much power to place in the

predicted that adver¬

even

move

to other media,

that the American

system of

sion

effect, and
dictions

of the dire pre¬
to pass.
Now, they

none

came

TV

networks, and therefore sub¬
servient
to
the men who head

dicted

empted

by

them.

facts

it

that

situation in the
newspaper business would be re¬
garded as utterly fantastic. Im¬
agine, if
you
can,
a
situation
where two
major wire services
comparable

tional

and

news

trolled

censored

and

all

features;

advertising

revenue,

and the rates which a paper

and

for

had

leave

na¬

con¬

nearly 75% of the nation's

newspaper

charge

might

its advertising space;
capricious power to

the

any

that

even

wished

to

we

pre-empt

client paper high

and

dry by transferring its affiliation
to a competing paper. Even when
such transfer means bankruptcy
to the client.

Impossible? Yes, in the publish¬
ing world. But that fantasy bears
a
very close resemblance to the
situation in television today.




the

of

response

panel

last

"Tide's"

70%

summer.

advertisers

opinion

the

of

represented said

In

much

smaller

audience

sponsored TV. From this

follows,, that

wilL

subscription TV
profitable
operation
for hundreds of stations

make

possible
that

cannot

alone.
of

exist

With

this

tablished

large
time

to

pre¬

First

the

theatres

for them,selves any

over

TV program

be

TV. What do the

pay

indicate?

will take

would

that would be profit¬

Magazine."

t i

a

more

This

cause.

much

a

far

remove

better and

just
advanced

major
argument
against subscription TV,

one

blackouts.

To

presenting

a

be

sure,

namely,
a station

of black¬

case

same

time

sponsored program. But
TV

ent

a

our pres¬

supported

system,

air

100%

Theatre TV has outbid sponsors

nearly all heavyweight cham¬

home
cause

to

screen

theatre

TV,

be¬

theatres outbid sponsors.

Look at the

Metropolitan open¬
on home TV and
then disappeared into the theatre.
ings that
is

That

were

one

where

theatre

TV

it for prices aver¬

as

football games

many

for home.

as

consider

what

happened to some of the more
popular TV programs when they

it

is

TV

because

service

a

we

of

real

public, and that pub¬
patronage
will
make
it
a

lic

business

asking

are

for

compete
for

now

with

share

a

venture.

that

it

commercial

other

of

and

the

with

be

We

auth¬

service, to

TV

services

viewing audi¬

scription TV is the

Sub¬

thing that

one

a

motion

picture

share of the movie

sa.ys,

"No thank

you," we will lose our
investment. That is the traditional
American way of doing

business,
way that has built our com¬
petitive system and given Ameri¬
the

the highest degree of
perity in the world.
cans

pros¬

Walston Opens Branch
Walston

&

Co.,

Inc.,

of the New York Stock

members

Exchange,

has opened a branch office at

Fifth

Avenue,

with Joseph

New

York

Weinberg

161

City,

as manager.

put a full schedule of top
sports on the air, and keep them

Branch, Cabell

there.

RICHMOND, Va.—Cary Stewart
both

Sheild

on

CBS and RCA refutes their argu¬

mitted

to Admit

to

Business

that

ment

not

experience

show

of

subscription
the

fine

March

15

will

be

ad¬

partnership in Branch,
will Cabell & Co., 814 East Main Street,

TV

quality

pro¬

members of the New

York

Stock

promised, but will instead Exchange.

grams

ithe

garner

most

popular

mass

market features. Now, it is a fact
that more people will watch
a
telecast

of

watch

will

phony

paying

David

Mr.

Chairman

of

a

sym¬

a

Board

Americans spend

talk be¬

Federation

said

June,

it
\

...

Sarnoff,

RCA, in

last

admissions

game

when

But

money.

American

the

Musicians

of

one

opera.

or

to

good baseball

a

of

Abraham Pereira will

membership
Stock

RCA

on

than

to

in the

are

music

what

fine

prefer

they

when

acquire

New

and

on

a

York

March

partnership
in Kaufmann, Alsberg & Co., 61
Broadway, New York City, mem¬
bers of the

New York Stock

Ex¬

change.

Joins Mutual Fund Assoc.
(Special to The Financial Chronicle)

CBS

and

phonograph record business, pro¬
viding
pay
entertainment
for
people

Exchange

th^

15 will be admitted to

baseball games.
Both

in

that

money

more

to. concerts

Kaufmann, Alsberg Admits

SAN

JOSE, - Calif. — Hoguma
Ogawa has been added to the staff

available

is

of Mutual Fund Associates Incor¬

porated,

1871 Alamedo Street.

upset the record

a

arrives at the admittedly optimis¬
tic figure of 588 as the maximum
number

of

vertisers

TV

stations

support

can

that

in

ad¬

the

United States. It states there is
evidence
New

that

York

support

or

four

no

market, even
Los Angeles, can
profitable stations.
any

in

FCC

has

are

authorized

in rural areas,

some

to

troduction
was

quality
time

reproduction.

of

record

the

of

12%

that

At

represented

music

there

but

cant,

four

including

channels

one

va¬

educational.
these va¬
occupied

The net works say that
cant channels cannot be

economic

reasons.

They

are

have

an

sponsored
grams.

The

abundance

and
same

of

sustaining
situation

new

pro¬

exists

Samuel

B.

Franklin

&

Co.,

215 West Seventh Street.

con¬

With C. A. Botzum

cert music accounts for about 40%

phonograph record dollar
volume.
These
figures indicate

(Special to The Financial Chronicle)

the

of

paying

tremendous

one

desire

to

market

quality programs

Our opponents moan

are

with

indus¬

Today,

dollar volume.

try's

Samuel Franklin Adds

(Special to The Financial Chronicle)
industry by in¬
of
the
LP
LOS ANGELES, Calif.—George
record,
vastly
superior
in D. Davis Jr. has become affiliated

(concert

about

on

TV". Some years ago, CBS

or

v/hich

urban.

Right here in Philadelphia
there are three stations on the air,

right, so far as present economics
openings "for tech¬ is concerned.
But, with the addi¬
nical
reason s,"
which is the tion
of
subscription
television,
strangest synonym for money I these stations could
operate prof¬
ever heard.
itably, and
Philadelphia would
let's

subscription

believe

can

radio

200, TV stations to make
profit. A study released by CBS
as

season's

now

ing

box office. If it proves to be a
service of value to the
public, we
will prosper.
If the public

few

guessed wrong. They cancelled the for

But

re¬

home TV. The last Marciano fight
was shown in 132
theatres, where

by advertisers, is enabling some¬
thing less than 400, possibly as

announced plan to theatre televise

this

go a long
insuring freedom of
the air; in short, that

theatres for

waiting for

the

for

will

ence

subscription TV.

from

and

tool

pionship fights^ in recent years,
they have hot been shown on

channels

championships,

tool

and

the

vanished

effi¬

more

sales

develop¬

orized

into total blackout.

1,875
commercial stations. Some empty

have

on

the theatre

Yet,

heavyweight

it

TV

spon¬

it is in the public interest.
Zenith has spent years of
search in pioneering and

,

able for exhibition where the pub¬
lic was expected to pay. Look at
which

make

toward

sports, which are steadily
moving from home TV either-into

subscription program

the

at

that

successful

outs in

for

sponsored

will

better

a

and

speech

•

cannot

TV

value to the

than it is today.
Then there is the

or

it

better and

a

merchandising

way

n g

erase

that

TV

cient

economical sales tool for' you

more

or

service;
sored

therefore

es¬

sponsored and sustaining

will make TV

degrade

broadcast

their

of

,

scription TV will

fore

That leaves to be answered

subscription

seeing costly high-budget box

you;

e v o

blackouts than it will

comes

sor

1

,

that

office entertainment in the
home;
that it will improve rather than

number

new

programs, it is inevitable that sub¬

between fee-TV and

free-TV, and
their opinion is sustained
by a
similar poll conducted by "Spon¬

closing:
submit

and

greater

markets, d

portion

advertising

on

stations, in both

than

earn

I

is

remain free from

domination.

of

$36,000,000 last year, ap¬
parently see no incompatibility

to

business and

a

scheduled

we

of

can

it

for theatre TV

if

this

of

presentation

than

results,

unable

right to

with

experi¬

they
favored the coming of subscrip¬
tion TV. Many said they believed
When TV first became a na¬
tional force it played hob with it would improve sponsored TV.
movie theatre attendance. At that These men, who place the adver¬
tising that enabled the networks
time a large bulk of movie enter¬
making
similar
predictions
about subscription TV.'
are

stations, as it is served works must know it.
One
of
tne
consistently high
by an abundance of strong, in¬
dependent newspapers, we are a rated TV programs cited by CBS
-country whose TV stations have in its arguments against us was
become subservient to the major "I Love Lucy." They have pre¬

controlled

show

would ' be

the

will provide to the American
pub¬
lic the economy and convenience

test

own

to

seems

would-be

therefore axiomatic that subscrip¬
tion
TV
can
operate profitably

business

of

our

broadcasting would be sponsored programs and take over
all TV. Advertisers are well aware
However, the Commis¬
of this indication, as is shown by
put these regulations into

TV

A

bit

and

network

hands
any two men, no matter how
high
their standards or
noble tainment was made up of features
their purposes.
Power like this with low production cost. One ma¬
-could
very
easily destroy both jor producer salesmanager com¬
freedom to speak and freedom to plained to me in 1950 that he had
hear on television, and television
only six or seven pictures a year
has
become
one
of
our
most that he could get out and sell.
Then Hollywood began produc¬
powerful means of distributing
information and influencing pub¬ tion of high budget masterpieces,
and has prospered.
lic opinion.
The moral here is that people
Free TV Dominance
will pay for superior, more costly
The
healthy competition that entertainment, and refuse to pay
low
-has always existed between news¬ for
budget material.
The
papers has
almost no counter¬ movie producers and theatres
know this, and from their own
part in television. Instead of a
nation served by strong, indepen¬ business experience the TV net¬
of

dent

Every
ence,

air

network

subscription

sponsored

fans could see

destroyed.

tion that has led to domination of
television

They

tisers would
and

public

cause

to disappear from the air.

grams

thousand

a

subscription
programs,
particu¬
larly if that' enables them to stay
in

viewer to the broadcaster will

took up

would

completely dependent upon their
networks
for
prosperity,
even

that

me

TV broadcasters have the
devote part of their use

aging above $4. It was a tremen¬
First, although people will pa¬ dous
success, grossing a reported
tronize subscription TV showings
$1,240,000, which has led to talk
bitterly opposed the suggestion. more than they will see movies at
of moving the World's Series into
Both contended that network op¬ the
theatre, they will limit their Theatre TV.
erations would be hopelessly
patronage to events they wish to
If theatre TV continues to grow
crippled if their hold over broad¬ see, and to their budgets.
as
it has, and if restrictions on
casters were limited by regulation.
out of seven were affiliated with
Second, their patronage of pay home telecasts of sports continue
They said that adoption of Chain
either NBC or CBS. Of the sta¬
programs is so limited that sub¬ to
tighten, how long will it be be¬
Broadcast Regulations would bring
tions not affiliated with neither
scription TV could occupy only a fore all important sports events
deterioration
in
the
value
of
small
NBC nor CBS, 71% lost money.
portion
of
any
station's move
from
home
TV
to
the
broadcasting as a
service, and
broadcasting day.
Most affiliated TV stations are
theatre? This season Notre Dame
Last

grams.

to

free

per

If these programs, as

fail

scription and sponsored TV. With
subscription TV, the question is
not

stars who appear

name

tending the theatre. It also

the nation.

over

networks

that there is really no comparison
between
the
economics of
sub¬

production

thing is true with other

same

homes at costs far lower than at¬

The

million dollars.

pay,

cost exceeded

throughout the State of Pennsyl¬
vania, and all

successful

very

45

use

the

free

on

about our
air.

I

LOS

ANGELES, Calif.—Veryl

R. Hays is now with C. A. Botzum

Co., 210 West Seventh Street. He
was formerly
with Mutual Fund
Associates.
I

be¬

Joins Hemphill, Noyes
that
profit to¬
LOS ANGELES, Calif.—Thomas
day
by
broadcasting,
ship-to- H. Keller has become associated
shore,
airlines,
telephone
and with Hemphill, Noyes & Co., 510
telegraph
companies,
etc.
The West Sixth Street. He was for¬
networks
are
rolling in wealth merly with J. A. Hogle & Co. and
acquired by selling to your clients Fewel & Co.
the right to use this free air.
lieve

it

is

fair

to

point out

the free air is used

It
can

so

seems

that the Ameri¬

me

J. R. Nicol Opens

people have the right, if they

choose,

to

air, which
see

to

for

new

use

they

movies

this

own

and

same

free
to

anyway,

other

box

office entertainment in their own

BLOOMFIELD, N. J.

— James
in a securi¬
ties business from offices at 1320

R.

Nicol

Broad

is engaging

Street.

46

The Commercial and Financial Chronicle

(1334)

Continued

from

television

for

something which is real important
the public.

the

have

form

of

the

of all

in

broadcasts

sell the broadcast rignts oi me

to

simple arithmetic,

shown it in the

willing

is

In summary:
pay
were

nomic lines and

to

vast medium

the

and

we've

as

"Ed

Show," demonstrates how

ing the television broadcasts of

public decide."

the

he

majority of the public isn't mak¬
ing the decision. A tiny minority
could theoretically make pay tel¬

the Brooklyn baseball

evision pay out for the promoters

the

is

right charge

moters favorite

certainly
far

as

as

concerned!
Last year

club got about $5,000 a game for
radio and television rights. Now,

and

let's

television.

look
out

one

of

10

families

;

through

90%

prive

closely at this: If only

would

who

>Continued

payments

of the public
This

of free

minority

brand

a

de¬

rule
caste

new

system, those who could afford to
pay

them

any

$30,000

and those who couldn't. ,
This same arithmetic applies to

television,

about
game would be received.

a

other popular

these

Promoters' Profits

-after

go

And

program.

the programs which the

are

television

pay

and

promoters

would

from

remove

free

second

a

copies

as

"AEC

Prices

Materials."

television

pay

they wouldn't hear them
the radio, either. The pay tel¬

on

evision

promoters

the

make

who

Mary
Phil

would

arrangements,

each

would

be

price

out

enjojy

of Colonel

runs

Madison

the

on

Square

Here is what he said

also includes issues of a sec¬
monthly
abstract
journal,
Reports for Civilian Ap¬
plication."
V,
As a means of assisting Access

Garden.

for

as,

example,

pub¬

championship

to

of

the

This is

However,

fight
theatrical or

a

we

citizens

of

New

worthy objective.
inclined to be¬

a

are

lieve that the people who control
the box office on pay television

boxing

will be

championships; the baseball
World's Series; hockey playoffs;
basketball
championships;
the

just

as

anxious to get the

maximum return
ments

as

their invest¬

on

else,

anyone

maximum return is in

Westminister Kennel Club cham¬

ence

pionships;
the
National
Horse
Show; the great indoor and out¬
door
track
meets; the Olympic
Games; football features such as

programs

the

and

audi¬

mass

not educational

—

programs.

If

Army-Navy game and the
post-season Bowl games;
the
professional football cham¬
pionships and all-star games; the

they can make more money
showing a moving picture
for the fifth time, as they have
said they would, then out of hav¬
ing a lecture on medicine or San¬
skrit as they also promise, I think
obviously
they will
show
the

Davis

movie.

out of

the

various

Cup and Forest Hills cham¬

'

pionships; the Derby and the other
great horse
of

races—a

national

and

list of events

But,

international im¬

they

sports

got
started
installed their

and

stiles

more

on

and

the

New

would

be

Show"

and

the

If

only

how

see

metic works

"Ed

ple

arith¬

grams

free

Washington—would

pay

van

Show"

sponsor

his

much

for

entire

as

now

time

the

costs
and

"Ed

as

its

Sulli¬

present

talent

nationwide

for

coverage.

VA% Will See
The

from,

show

free

would

be

television

away

and

be

putting
library

We

turn¬
or

im¬

education by
get more peo¬
informational pro¬
on

citizens but
be
.

injured.

the city

itself would

New York

the cities in which
will

pay

is

one

of

television

start.

Hollywood, is at

present

the television production
capital of the world. Every pro¬

pay

a

of pay televison has said
major economic support of

television will

pictures.

Thus, 21k°Io of the television fami¬

think

repetitious

switch

in the Technical Informa¬
extension at Oak Ridge.

agency

tion

Education

able for eduction in the

showing

There

that
the

pay

is

out of the

come

of
no

television

center

of

moving

reason

to

would

motion

pic¬

ture production to New York
City.

avail¬

new

tech¬

not
entirely sufficient, move for the
promotion of the Peaceful Uses. In
addition, actual teaching must be
nology

is

done in

but

necessary,

a

certain fields

which have

yet been incorporated in the
curricula of the schools and col¬

not

the country, and the
Commission operates several such
of

leges

schools—the

Radioisotope

Train¬

ing School at Oak Ridge, and the
schools on reactor technology at
the Argonne

the

at

and

National Laboratory
Oak Ridge National

addition, a pro¬
gram of one-the-job instruction is
carried
out, and fellowships in
Industrial Hygiene and Industrial
Laboratory.

In

awarded.

are

the Peaceful

on

Uses of Atomic Energy at Geneva
last

Summer

the

was

largest

single effort in the dissemination
information

of

made

Uses

It

was

by

Chairman

Strauss

made

shortly

speech

before the United Nations General

established
Uses

Dec. 8,

on

the

have

to

1953, which
Peaceful

whole

has

contractors,

27

of

limited

information,

these
to

Agree¬

unclassified

including

research

reactors, and are aimed toward
the development of the teaching,
research

step

in

instructional

and
are

the

facili¬

necessary as a

development

first

of

the

Peaceful Uses of the atom in any

country, and 25 of these Agree¬
ments

for

effective.
with

ada,

Cooperation

are

now

The

remaining
three
the United Kingdom, Can¬
and
Belgium
involve the

transmission of restricted data
power

on

Uses.

The proceedings of

Conference

the Geneva

being made available

These

the1

,

changes should

other

benefit

to

mankind

few

the

which

brought.

weeks

I estimated
potential of
in agriculture now
$210
million
per
ago,

economic
;

meetings open to the year..
public are preceded by ;yy:' Radiation Applications
announcement. ; Classified
!

Permits, particularly, those who
expressed interest in a particular
subject.
During
1955,
meetings were held in Pittsburgh
on the Pressurized Water Reactor,
and one in Washington
on
tho

have

<

-

the

is

icy

Element

our

con¬

pol¬
these Uses in

but

Most

can.

work

with

the

its

of

the

has

date

to

outside

done

Commis¬

blessing

and

assistance, and if there be oppor¬
tunities

Process¬

be

which

by

Commis¬

the

c'an hasten the realization of
it

benefits,

certainly

will

pleased to consider them,

y

»

AEC

actor

Experiment No. 2, and one
on' the Sodium Graphite Reactor

Regulatory

The Atomic

Experiment.
the

it

way

been

on

the Homogeneous Re-

real

on

The Commission's

development

these

Fuel

to

to be

prove

promote

to

every

constitute

effects

may

siderable.

sion

one on

Their

daily lives

of

Chemical

and

and

Without doubt, both

these Uses will

of

sion,

another

foodstuffs

and other reactions in the chemi¬

coming months, four ad¬
ditional meetings are planned—a
second one on Industrial Supply
Material,

now

inductipn of i polymerization

benefits.

In the

Feed

Use

pasteurization
cf

cal industry.
<

metal.

uranium

the

to

sterilization

hexafluoride,

uranium

Peaceful

known is the application of radia¬

Supply of Feed Mate¬
rial, pursuant to invitations to
industry for proposals for bids on
production of uranium tetrafluoride,

third

The

tion

to the notice of holders of Access

is

'

(

meetings, of course, are open only
people and are brought

It

has

atom

approximate

to cleared

ing,

policy
this

way

Those

public

and

AEC

every

radioisotopes

Peaceful

The

in

A

reactor tech¬

on

the

and

general

Functions

»

Energy Act of 1954

assigns to the Commission a regu¬
hope of the Commis-

sion

that the

will

be

•

engineering schools

able

take

to

load

the

latory function in the atomic en¬

The Commission has
these responsibilities

field.
approached

ergy

of

educating engineers in the nuclear

with the full

technology; however, the equip¬
ment required for the necessary
laboratory
instruction in these
fields is expensive and it prob¬

of the im¬

portant

ably will be
Commission

can

time before the

some

relieve itself

en¬

-

awareness

relationships which con¬
trols bear to the vigorous growth
and development of a- new indus¬
It has been the intention
provide the minimum of con¬

try.
to

consistent

trol

tirely of the direct teaching func- * defense and
tion

this

in

Atomic
In

the

field

Power

Power

of Atomic

vigorous

Power,
a

par-

The

course.

Demonstration

Reactor

Program, launched about

one year

of

ago,
was
an
outgrowth
earlier Five-Year Reactor

This

the

Devel¬

done

was

in the belief that economic atomic

would be brought nearer
construction of large scale

plants
that

by

private

since

would

industry,

first

the

such

and

plants

probably not be economic,

Commission
necessary.

assistance

However,

would

the

be

Com¬

mission believed that the offer of

government assistance would help

industry undertake the building
of large scale power plants. This
has

proven

be

to

true.

As

you

were

re¬

ceived, and in addition, two major
installations

tal,

the

are

program

requiring

planned
by

only

the Commission.

common,

of the

Na¬

public. The Commission has
to give full recognition to

the

principles

outside

private capi¬

licensing

by

that

necessarily

practices,

upon

with

and

management

that

be enforceable in a

One

regula¬

private
interfer
un¬

restrictions
participation
nor
sary

the

the

should not impose unneces¬

tions

they

a

should

practical way.
however, that

should note,
Commission has

velop

had

de¬

to

comprehensive system of

regulations for an industry which
still is in ilfc infancy, with little
or

no

Under
have

experience in many areas.
these
circumstances,
we

refrained

from

establishing

rigid
licensing
patterns which
might prove to be either pre^clusive or inadequate.

Regulations .on the following
been published in the Fed¬
eral Register and comments there¬

have

on

know, several proposals

the

and safety of

tried

•

the Commission has taken

ticuarly

with

security

tion and the health

field.

the

of

reactors.

of

to .further

that

and more recently,
of acquiring car-

rent information

nology

by

are

regula-

distribution

countries

established.

was

for the purpose

30

nations;

health.

is

technical

power

ments

to

great

negotiated
Agreements for Cooperation with
now

the

the

topes wiihin the bounds of safety

their

opment Program.

program.

of

World, and increased the;
exempt quantities for certain iso¬

'

•

*

uses

Commission

simplified
to

many

practical

The

Free

the

effort

suggestion of

after the President's great

Assembly

•

.

dwarf

made.

isotopes

cussions with AEC specialists end

aegis of the United Na¬
a

>

will

concerning

staffs participate in organized dis¬

-

tions, pursuant to

tions

organizations thus have been

enabled

Commission.

the

international

an

under the

Peaceful

the

on

already

Industrial

the information

Making

ties which

New York, not

that

classified document sales

a

Our Nation

It

blacked out in these four markets
for those willing to pay.




by

fee.

except

lies of the country—one out of 40
—could provide enough revenue

education

by transferring them from

to

ponent

bid

even

will, perhaps, be worse
for New York, since not
only its

50c. for the "Ed Sullivan
Show," they would pay more than
as

is

We can't

watch

whole.

as

twice

It

Pay television will be drasti¬
cally bad for the country as a

out of 10 television

in just four big citiesNew York, Chicago, Los Angeles
and

charge

a

to

by

the public

television.

families

little

on

posing

out.

one

that

that

do

stiles

Sullivan

this

essential

can't

a

take

education.

people to turn to education.

'simple matter to bid
away all the most popular pro¬
grams the public now enjoys free.
Let's

The Commission has also estab¬

lished

The Conference

CBS, don't think
to increase oppor¬

be

—

cleared

important and

past

and

they wish
the Com¬

Permit holders.
It is estimated that by June of
this
year,
each such collection
will contain about 8,000 classified
and 13,000 unclassified reports.
properly

Medicine

entertainment by television should
free.
We want to encourage

Yorkers—and

same

cities

-i-.

television should be free than that

applies to all the other
they propose to enter
it

of

for

more

the

of

more

tunity

with

sets

at

we,

that's the way

turn¬

home

for their use,

to obtain

Educational Use

portance that may be expanded."
Once

which classified reports

the

,

determine

to

picture first-night.

programs

York.

expected to pay for
will always be somewhat limited
such

holders

lor

material

10 years been active in. prove to spur this Peaceful Use
Some months ago,
the dissemination of information considerably.
through symposia, seminars and ,a general subsidy of 80% on all
the
like.
Interested
companies isotopes used in medical research

age

Permit

ore..

are

industry to be made in

future

of

the

ond

heavy

a

occasional

an

on

be

could

free

Every once in a while, the pro¬
ponents of pay television fall back
a promise to
bring educational

who

last Spring.

"The type of show that the

lic

motion

testi¬

Kilpatrick

for

pay

the promise

or

every

television with¬

on

payment—this

mony

the

from

This is indeed

to

heavyweight

other sports event that New York¬
ers now

Goward,

enlarge

year

removed

television.

about

Noel

variety and richness of television

on television.
What has been said about a ball

said

and

Silvers and all the programs

ing to watch them
be

a

and

the

Domestically, the AEC has for

granted "Secret" access, the pack¬

Wells

could follow them, instead of pay¬

could

to

Lucy's," and sporting
the "Peter Pan's," and

Martin

which

couldn't
afford to have these games broad¬
cast on radio, free, where
people

game

present

cine

high-energy accel¬
erators for nuclear physics to t.ie
prospecting and mining of ura¬
nium

dollars

v

recently

holders

At

estimate that

million

will

themselves

adequate

blessing.

a

we

annually in ordinary indus¬
trial processing.
This saving is
likely to increase rapidly. : •
We anticipate that the
routine
everyday use of isotopes in medi¬

and from ultra

Guide,"

Permit

For

they

as

time,

uses.^
time,

power

saved

Development
and

radiation

the present
a 5 hundred

beginning course in the Peaceful
Uses.
The subjects; range from
radioisotopes
to ♦ atomic
power,

Nuclear

for

Ballet's";
the mission has
recently taken steps
"Judy Gar¬ to establish classified
depository
land Show's," and "Blithe Spirit's"
collections (including also the un¬
that practically all of our citizens
classified materials) at key points
can
get now free. Yes—and the
throughout the country.
These
"$64,000 Question" and "Climax"; collections will be available to

And

and

a

Confidential

Declassification
"Fair

and

the

of

"Caine Mutiny's," and

it—could black out the games on
television for the other 90% who
used to watch them free.

•*,

constitute

containing a set of the
monthly
abstract journal,
"Ci¬
vilian Application of Atomic En¬
ergy," covering the Confidential
reports available on sale, as well

_

"Sadler's

isotopes will rival atomic

umes

receives

In this way, 10% of the fans—
the richer ones wh® could afford

of

therefore,

Love

velop their applications and

by the United Nations fill 16 vol¬

he

Isor

plentiful

only remains to discover and de-'

not

y,:;'.

mation,
package

would

smaller audience for pay all of the

in

or

,'y

cleared to receive classified infor¬

"Secret

The proponents

available

are

•

And Private

station time, there
would be $15,000 a game left for
the Brooklyn Ball Club, instead
of the $5,000 they got last season.

events;

topes

unequal choice of paying

.

ing

"I

buy

-

tangible

amounts at reasonable cost and it

10

page

television.

the

appreciable,

benefits at the present time.

watching.

a

communica¬

If half of this went to the pro¬
moters for their profits after pay¬

for

encouraged people to

derived

argument "let the

their

create

from

It is clear that the

television, free, would pay the
price of a bleacher seat to watch
pay

atom—Isotopes—is in reality the
only one from which mankind has

Peaceful Uses of the Atom

mean¬

watched the Dodgers last year on

on

screens

It is likely that throughout

ingless is the pay television pro¬

is

which

>

their sets and leave them with the

eco¬

would destroy

of free

television

those who could not afford

Sullivan

price of a bleacher seat is just
about the right charge for watch¬
It

along

the

Isotopes

The second Peaceful Use of the

of the Dodger

case

the

games.

television, if it

audience

••

cit¬

our

to pay. It would take away from
free television the very programs

successful, would divide the

television

out

of all

its

justified claims for leadership.

Dodger games, and he thinks that

Dodger

New- black
of

some

to all

television homes.

S.

U.

This

baseball

Dodger

O'Malley

Mr.

games.

ready-made,

it,

promoters

weaken.

thus lose

available

now

izens for the price of a set. It would

destroy the free program schedule

for

They

television

pay

would

York would

Pay Television's Faults
And 111 Consequences
V

tion

Moreover, New York is the great
center of advertising, which pay

22

page

.Thursday, March 15, 1956

..

solicited:

Production

and

Utilization

Facilities, Operators'
Licenses
for
Special
Licenses,
Nuclear Materials, Access to Re¬
stricted
Data," Safeguarding
of
Restricted

Against
■mnrf

Data,

and

Radiation
mnofiri

Protection

Hazards.
rfct

Lrtta

In
l-»

Number 5516...The Commercial and Financial Chronicle

Volume 183

held

with ✓representative

groups obligations to make further deresearch or- terminations relating to hazard,
ganiza tions for purposes of disa
g
i*
1
tussing the proposed regulations
*
Ore Supply
and obtaining views and suggesAll of these Peaceful Uses, of
tions of these groups. Following course, depend on the supply of
!the usual period of having been uranium ore. At the present stage
published for 30 days in the Fed- of development, a Free World
eral Register and following the uranium industry of a major ecodiscussions, several of the regula- nomic importance has been estions have been put into final tabhshed.- It is- nearly- a; halfeffect.
'
•
'
r-•.♦.billion dollar per year business at
f rom

industry

and

(1335)

NrY.

*

Public

.

have been expected,

j
As might
.number of

basic

problems

have

uranium mining

element fabrication

;materials used in such facilities?"
We concluded that the latter Was
.

pilities do not require licensing,
.v

Again"

wa^ necessary

it

'it was necessary to impose in1 the
•requirements for
licensing the
•necessity for safeguarding special

Our final view
the

that

been

not

if

sion recognizes

vide sufficient motivation for the

appropriate

exercise

to

transcontinental Gas Pipe Line, several fields in the Southern
assets of $325 million and Louisiana area; for technical reaClub, revenues of $75 million, operates sons the company is not buying
New a natural gas transmission system additional gas in the Texas area,

try Club"and

.

Rye,
York

Fri-

on

^

riior

'day, June 1,
,1956.

Robert

distance

a

nearly

of

1,900

although

miles between the Rio Grande old
[Valley near the Mexican border Vsc

costs only about
as compared with 16c in Louf
isiana. Gas is sold to customers at

BLf Krumm of
W. H. Morton

Texas) to the New York City
Metropolitan
area.
Daily
pipe

& Co., Inc., has
been named

line capacity,

general
Chairman
of

last year, not including 136 mil-

l%c per mcf. per 100 miles,
In settling its rate case a few

lion

months'ago the

the

facilities.

the

outin g,

565 million cf,: to 705 million cf.
from

storage

is plan-

company

ning to increase its capacity

lowed

an-

other 80 million cf. this

announce-

ment stated.

Monroe V. Pooie

cf. ^available

The

have refrained from imposing

and

year

guarding

ability.'

No

problems,

account—"

and

doubt

many,

offsetting

years,

William

,

Hall,

T.

Jr.;

Arrange-

buyer's option. The principal

that industry must. Committee, John J. Ward, Chair- ancj
,0SJ;P. ShOrer and DonaId the

other

mmee, uaniei r. wnitiocK, unairman, Thomas C. Cafone, John C.

level of exploration and development is to be maintained. Consid- Fitterer, Jr., James E. Falion, J.
erable thoughWs also being given Arthur Porter and Gilbert V. D.

to^en- White;

differing., in kind as

long-term purchase contracts,

new

cus-

a]so the Piedmont district in

Carolinas,

Georgia

and

and about 100,000 acres in
the Appalachian area have been

area,

Vir-

Committee, Ms

—
Service Electric & Gas,
Consolidated
Edison,
Brooklyn
Union Gas and Philadelphia Elecw
.aKe
trie, which take u
nearly half the
Public

tions

last

quired
•

I
;

Thus

far,

applications

14

tition

IrUZ

$1.23

Tom

for

1956;

,vurtC

from

vuxxifjc-

other

pipe-lines as
(as from other fuels, principally oil) the outlook for-further

long-rangaplanning based on,

own

President

forecasts

well

for.

^censes to construct and operate
production and
util^atiom facihties have been received. Two are

and

year,

if the figure proves correct, earirin£s will have doubled since 19$2.
The 1955 earnings did not include
any special or non-recurring items
growth is encouraging. There is — for the first time in several
a sizable area in North and South
years, earnings were not subjected

gradual transtttaa from a govern
ment-controlled to a commercialdominated uranium market. It is-

regulabe re-

will

undoubtedly

exploration. Tests made

while drilling was in progress encourage further activity, but resuits are still inconclusive,
illc
The company earned $1.15 on
the split shares'of common stock

Practical^alfrf Jhe

putpit.

total

ctxrvi

ar.d amendments to these
'

gradual rise

any

in field prices by increased ef¬
ing will be—Chairman's Commit- or looped.
-tee, Fred _D. Stone, Jr. and H. , Natural gas is sold at whole- ficiency, lower taxes resulting
Grady Wells;- Announcement sale, generally under 20-year con- from new depreciation rules, etc.
Committee, William P. McKay, tracts with renewal for three sue- There are no escalator or "favored
Chairman, William S. Shanks and cessive five-year periods at the nation" clauses in the company's

Walker

.

company was alreturn on the rate

6%

a

base. The management is confident that they can retain their
present rate structure for some

;
Assisting 25 million cf in 1957. Sixty per
the general Chairman for the out- cent of the line is now doubled

tuuiiuie P^imu «i ume n a xugu

detailed requirements for physical

storage

price around 34c,trans-

an average

increased from portation cost being approximately

was

leased for
we

obtained there undef

gas

contracts

The ^present-government pro- ments Committee, William F. ' tomers are local utilities serving
An active program is under way
f£am.
^a0buyia?, ex^ires ,.on Dore^ Chairman, Geo. B. Gibbons,; the New York City, Philadelphia to find additional gas storage faMarch 31, 1962, nnd the Commis-- Jr. and Carnot W. Evans; Finance and adjacent New Jersey areas, cilities near the eastern market

classified,

licensee

Transcontinental Gas Pipe Line

West-

Beach

and milling oper-

cial uranium naarxet..

material is

the

Chester Coun- V
^

tify the large capital investment
required for^tppiic power plants

the licensee's fi•nancial
responsibility
for
the
monetary value alone should pro-

at

Therefore, the-uranium procurement program^should be designed
to prevent^'boom and bust" operntions and to permit a gradual and
ordinary transition from a gov-ornment-controlled to.a commer-

to what extent and in what detail

•has

announced that the cluo
will hold its 23rd annual field day

-

to "decide

•nuclear material.

York,

be sufficient to jus-

and, therefore, these fa-

case

By OWEN ELY

Municipal Bond Club of New

atiOns. An active and healthy
domestic,'mining industry is an
important factor in the development. of atomic power and the
other Peaceful Uses. The mere
a 'Urannim supply

facilities be licensed?" Or, "Would
the necessary safeguards for"publie health and safety be provided
through regulatory controls over
;the source and special nuclear

Utility Securities

Poole, President of

yeara*aas

.mulating the regulations. For example,
we
have the question:

the

the

V.

tlc share about $200 million per
Already the economy of
m some of cur Western
states is heavily ^dependent on

,

^already been encountered In for-

"Should fuel

Monroe

<

^ presentshme^^mit^dorriesr

a

47

Carolina

own estimates/of the probable
growth of a private atomic energy.

Salomon

Bros.

&

Hutzler,

60

ceive

yet

re¬

and Transcontinental
allocated 20 million mcf. of

has

refunds

to

or

adjustments under

rate

proceedings.
This resulted
from the settlement of the com¬

■
Wall Street, New York. Cit-,
pany's application for increased
new
summary,
jn summary, the uranium in-, members of the New York Stock — - gas for future sale in this
--rates reached in November 1955.
;
ealthy state today;' Exchange,, announce that Carl E.
dustry is-in a healthy state today; ' Exchange,, announce that Carl E. frea- of the 12 utilities of the The
dividend rate was recently
r production
is- continuing
'V^2r^HlPro<iUction;.; j^t-^5pntinuin0 to in-; Buckley, formerly Vice-President North rSprvin« a population nf increased from 70c to 90c.
Nnrth (serving
nnnnintinr, of
^Pnnc:niS?afpd crease and important new sources of The Chase Manhattan Bank, is aboyt 17 million) to which Trans¬
The stock has
recently, been
continental
delivers
gas,
seven
rrmnoni nf Wm!
of sbppiy are bqing found. Mill-, now associated with the firm.
Edison
Company
distribute primarily straight na¬ selling over-counter around 17%
:
SfL2 SZnwl.uh Edison ^ at thp camp timp being: met
requirements are
Gommo
3D(1
Gommonwealth
it
pnrf
tural gas.
The remaining three to yield about 5.1%. The priceComnmiv <nf
Chirac!
for -re- f,na.' aLlne-'s^;
" aPP?ara
E/ B. Clark Go. Formed
plan to continue for the present earnings ratio based on last year's

v^earch reactoro, two for critical
assemblingi facilities, and_

industry.

does' not

that

gas,

.

—

--

_

.

'

?.

'

/

•

!

IDAHO FALLS, Idaho—Edward
-effort

bSnbns N^val^KadiaHoriiabo/aof'Washington

toiy

-Carolina^

C

D

North

power-

"

'

•

•

B. Clark is

engaging in

a

Salisbury Building under, the

..

W3rd,„.the Commission's firm name of Edward B. Clark &
"»vania State University, University policy on the Peaceful Uses of the Co. Mr. Clark wa3 formerly .a
of California at Los Angeles,, and atom'-is to dsttelop as many as partner in. Earnes and Clark.
;

;
'

^
•

.

SUte

the University of Michigan.

The

applicants for licenses for- criticalassemblies are the• Babcock and
Wilcox Company and the EatteUe

.->*'•.

Memorial Institute.

orvvoii

j

cations

for

tion and
or

I"

a

PossiWe,as sess possible, althat its first
responsibility4s4he common defense and security of this, country

-

W;tK

-

The

Commission

has

determined that it should proceed
in a safe way, but that the safety

*

■•

fdert,

L. Norris- is j?ow with Sutro
Co., Van Nuy^ Building,

with

and

Jenson
.

nuclear, data

necessary

to

determine hazard and ta minimize

control of reactor design. In
meantime, while theseydata
are: being .obtained the .applicant?

require

progress,, inay

_

that basic

Construction

Permit,

liminary review

of

Wilh Unfed .Western

Wilh Boren & Co.

OAKLANDi^Calif—Thomas F.
>

Quinn is now-with United WestSecurities^ Trie., 1419 Broadhvay.- *
tZ'C"
* ' " ■
.

, -

^special to

can

be constructed

the

site

.without

Before

the

issuance

at

undue -risk.
of

.such

a

-

data

and

as

of

they

additional-hazards

become

available,

with-respect-to those provi-

sions of the Permit which reserve
to

the

Commission its rights and




Calif.—Jef¬
been

Boren &

added

Co., 9640

Boulevard.

1C0 000

about

in all or

I

tained

or

Fdiscn

is

earnings would be 15.2, or if based
this yedr's estimate,

on

14.2,

utilities^added

12

house

heating euscertain that
this rate cf growth will be main¬
It

tcmers.

rity Building.

•

*•

R. A. Harrison Adds

—

Ralph

Company,

Secu¬

appears

Consolidated

increased.

actively continuing its

new

(Special to The Financial Chronicle)

BEVERLY HILLS,

Calif.—Louis
Bluman; Lotis B. Hawkins and
Orgill Massey have become asso¬
ciated
with
Bache
&
Co., 445
North Roxbury Drive.
Mr. Blu¬

,

D.

.SACRAMENTO, Calif.—Dwight man and Mr. Massey were fore,, Lambert is now with Richard merly with J. Logan & Co.; Mr.
A. IZariiiiCn, 12C3 Eixteeaih £t.

is b°ing carried out to
heating customers. Pub¬

lic Service Electric & Gas is

con¬

verting to natural gas in its out¬
lying territories, and many of the
bomes in suburban New Jer-

new

Hugh Long Appoints
Coward, Larrabee
J.—Hugh W.
_____
...

N.

ELIZABETH,

Donald

vear

Hawkins With V/alstcn Cc Co.

as

dis¬

The

two

will

assist

E.

Ellwood

resident Vice-President
company in servicing the
correspondent investment

Kalbach,
firm's
dealers

in the

northeast.

Mr. Coward is

Wharton

a

School
of

graduate of the
Finance

of

and

the. University

of

Pennsylvania, and is an officer in
construction, sell- the Air Force Reserve. Prior to

Transcontinental spent

$72 million

for

$50 million preferred stock
and increasing bank loans by $39.5
million.
The construction sched¬
ing

1956 will require an es'i$54

Coward

representatives
for
New
England and northern New York.

Commerce

Last

L.

Larrabee

C.

trict

for

Lighting.

Edwin

of

pointment
and

already use straight natural
gas. Two other metropolitan New
York companies which are active
in
promoting hcuseheating are
Brooklyn Union Gas and Long

sey

million

sell

to

plans

and

the

$40

com¬

million

joining

the

in the

was

Long

Company,

securities

he

business in

Providence, R. I.
Mr. Larrabee

was

awarded Phi

Beta

Kappa, and graduated cum
laude from Bowdoin College in

bonds and $20 million debentures,

Maine.

re^uciog bank

ence

$23 million by

loans

to

around

the end of the year.

A small amount of common

the year.
The

1

■

company

buvs practicallv
from s~me 58

gas

fields along 600 mi'es cf T»xas

and Louisiana Gulf Coast.
proven reserves

dedicated

age
were

estimated
half

the year.
for

a

Joins Walter Gorey

of gas under acre¬
to the company
at

5.8

trillion

trillion

cf.

cf.

during

The company contracted
gas in

additional supplies of

SAN

Charles

FRANCISCO,
A.

Calif.

Davis is with

—

Walter

c. Gorey Co., Russ Building,

Total

at the end of 1955, an increase o®

about

Portland, Me.

(Special to The Financial Chronicle)

all.its. natural
gas

He has 10 years experi¬
in the investment business in

stock

also be sold, probably late in

may
-

Three With Bache Co.

t

£prin?' street,
-

gain

pany

O. Wintrode is now affiliated with

ANGELES, Calif. —Bren-

1:

BEACH, Calif.

McCormick. and

(Special to The Financial Chronicle)

program

ule for

McOormick Adds

LONG

With Deafi Witter & Co.
v

Monica

has

(Special to the Financial Chronicle)

been with

Construction Permit, a clear un
ton Ogden ha* been added to the
derstanding is reached with the staff of Dean' Witter &
Co., 632
applicant in connection with the
submission

the

1955

rrated

I?-.?'

LOS

HILLS,

Leroy

fatAnci'u. chromicle)

PALO ALTO, 'Calif.-Robert E:

•

E.

to the staff of

Santa

v..Joins J^Larie" May
v.

(Special to The Financial Chronicle)

BEVERLY

;

.

-

ferson

warrants a determination that the

type cf.reactor

Guy- Hudson. Mr.
formerly with Utah

(Special to T:ri6'FxStancial Chconxcle)

a

if its prethe hazards

gas

Island

®ec^"

W.

was

Uranium Brokers.

^^u^on-wwk o«May ,has joimd the staff of J.
C^^s«ion
t? £sue
Earle' Ms>y-*-Co., 601 Bryant
proposes

(■ orendyke,

-

it by

the

D.

5®?sl«rer'^™-rvm

&'

-

obtain

N o r m a n

Vice-President; Rex .Hill, Secre-

LOS ANGELES, Calif.-Sherry

requirements should not unduly
retard theprogram cf Peaceful
Uses
to
the
minimum
degree.

Therefore, it is sometimes necessary
to conduct experiments to

the

Utah Savings & Trust Building to

A

(spcs-ai to tjffuunciu c*xr.oKicLi)

anyway

with offices in

formed

been

.

WiA Sutro & Co.

utilization facilities, a technical

hazardous.

•
; rJensnn-BeckwIth Hudscn

In

. .

—and that this too may, in
^ ^ gives us Peace, be the most

rpvirw is undertaken to determine

whether the facility is In

cTstribute mixed

' OT<?«r y conversion to natural gas, Long and Company, Inc., national
.h.d?P" ' and the areas sti:l to be converted underwriters for Fundamental InSALT LAKE CITY, U t a h —: represent the most densely pop- vestors and three other mutual
itself, Jenson-Beckwith & Hudson has ulatcd in rts system. A very active funds, has announced the ap¬

licensesV confc imP°rtant of ^Peaceful Uses.

operation of production

to

securi-.: part of their areas.

ties business from offices in .the

,

Swnmary

•

.

p'kmiOTl- ;

Goll'eBe

;

atomic

on

Lewis Adds to Staff
(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.

Elizabeth Boyd

has-been added

to the^sfaff of MaeBoyle Lewis,
Tiuss Building.

The Commercial and Financial Chronicle...

Tax Reduction Would Not Be
would be
inflationary force.

surplus

from

positive

revenues

-

Grede, Chairman of

proposed by the NAM, would give

the National

Association of Man¬
Committee,

the

Taxation

took

issue,

sharp

March 2, with
omists

e c o n

and

who

contend

that

Federal

tax

reduction
of

out

revenue

a

rededication

free

faith

of

way,"

economy

in

the

Grede

Mr.

said.
"It would

public of¬

ficials

greatest possible substance to

the

of

ance

sion

industrial

would

open

new

of economic well-being
expanding job opportunities

for

rapidly growing population."

a

surplus would
increase

Becomes

in¬

of

mstances

c u

reduction

tax

the

of
William J. Grede

Stephen M. Peck, 21

con¬

trary, under
present
cir-

became

the Board of Governors approved
his
application for membership

right

Mr.

kind WOUld be

counter-inflationary

positive

lorce," said Mr. Grede, in releas¬

the NAM'S

report on

ing

a

tax

plan, "Toward the Five-Year

new

8.

Peck,

Grede

Mr.

explained

that

the

boom have been an inadequacy of

investment

capital

derived

from

savings and excessive use of bank
credit.

income

of

rates

discriminatory

high,
business

stricted

have

tax
and

re¬

perscnsl

out, and if
these rates are not relaxed, then
further industrial expansion will

he

savings,

be

pointed

unduly dependent

of

upon use

Feb.

on

Peck,

ney

since

has

been

member

a

1934.

junior

at the Wharton School of Finance

&

Commerce in

will

be

Philadelphia and

graduated

in June, 1957.
He plans to become an independ¬
ent broker after

graduation; prior

graduation he will work

broker

only

months.

during

the

as

a

He has acquired

prac¬

a

tical knowledge of the brokerage
business
while
working during
the

months

summer

at

Ernst

of

the

&

Grede, President of Grede
Foundries, Inc., Milwaukee, notedthat the President's 1957 budget
estimates surpluses from Federal
trust funds

at $2

billion, and this

firm

Ex¬

Clark, Jr. has

—

joined

the staff

duce

519

California

was

previously with Schwabacher

&

substantial

before

relief

is

debt

The
under

which

corporate

both

a

plan

individual and

taxes

gradually would
top rates of 35%,
by the end of five years. The new
report explains that the rate re¬
be

reduced

ductions

to

would

be

made

an

expansion,

SAN

even

to

Co.,
ford

notes,
effect

,

was

&

of

H.

L.

Jamieson

tax

liability

Talbot.

._

,

income tax rate

in

SAN

as

laws

the

that

bigness

encourage

tax
beget

present

to

The third observation relates to
recent

statement

the Tax
Foundation. It points out that at
a

or

FRANCISCO, Calif.
Markham, Jr. is now af¬

—

with

Merrill

Fenner

the

near

by

current

Lynch,
Beane,
301

&

(Special to The Financial Chronicle)

Street, members of the New York

the

pany.

Francisco

Mr. Bailey

Stock
was

American

Ex¬

formerly

Trust

Com¬

•

Bravo!

tion of Federal tax rates. As gross

product

continues

Such

programs would not only be
good for the
country, they would be good for the union and its
membership for, in the last analysis, the only
way
to advance
living standards of union members is

productivity of the industries

which

International Brotherhood of

Teamsters.
We

ahead, it is certainly possible that
a
reduction in tax rates may al¬
low

corporations

to

percentage

of

which

retain

of

the financing

have

I

interest

trine

laid

down

hearty congratulations! The doc¬
here

is

ously sound that it should
unions function.




so

eminently

and

obvi¬

commend itself wherever

remained

financial

cellent

in

a

earnings

found

techniques

and

of

may

you

Interim Financing

to

of

acquire

several

It

the

common

unrelated

made

offerings

com¬

the

to

to

acquire their shares for a fixed
cash price per share. These offer¬
ings were accepted. To finance
the
purchase of such shares, it
arranged a revolving term credit
for a period of several years with
a
group of banks with the privi¬
lege of prepayment at any time
ac¬

ac¬

quiring the subsidiary companies,
overcome
its immediate problem
of procuring the necessary funds,
and
very
ably and competently
provide itself with the time neces¬
to devise a longer term pro¬
gram and to bring that plan to the
sary

when

market

to

appropriate.

be

conditions

Recently,

the

managements

of

two companies felt that their two

organizations

uniquely

each

other

combine

their

efforts.

of

mented

willing

to

one

sell

supple¬

and

should

The

stock¬

company

their

.

were

interests

to

the other, but the total cost price
determined

was

reach

of

the

However,

an

be

to

of

A

approached

B

Company

ar.d

in effect:

said

Look, we are both in the same
business, but I would like to turn
of my investment into cash

some

other

have

I

uses.

valued

plants

certain

$15,000,003

at

ar.d

inventories at those locations val¬
ued

at $7,000,000.

do this?

of

the

fi¬

stock

and

Since

had

only

consisted

the

V3

%

common

preferred

stock.

purchasing corporation

available

the

of

that its

funds

common

to

stock,

purchase

it

sug¬

had

being sought.

Provide

Credit

Cash

Base:

and

There

a

are

number of examples in which
or
combinations
have

any

mergers

taken

place in order to utilize the

ing consolidated company can
many
advantages in both

a

new

Why don't

we

will both put $5,000,000
stock.

we

in

common

Next, I propose that of the $19,000,000 received by the new cor¬

X

Company

with

$3,000,000

in

capital.

working
Then, I

to sell to Com¬

propose

X the fixed assets for $15,000,000, accepting in relurn longnotes

payable

over

a

help
but 4 feel
that
this
tech¬
nique has great unexplored pos¬
sibilities

Company X, the

$25,000,000 of

new

company

assets!

Against
this
it
will
owe
$15,000,000 in
long-term notes, and will have a
capital of $10,000,000, which also
total $25,000,000.

of

additional

capital or a larger
base, or even desirous of
later public ownership.
(c)v To
Benefit
From
Loss
Carry-Over: May I respectfully
credit

submit this loss to

countants

contract

will

vance

should

also

funds
run

from

be
to

half

own

wish

you

manage¬

Company X

expected to ad¬

Company X

if it

short of working funds.

1, Company A, will spin-off to

my

stockholders

in¬

vestment

in

$5,COO,000

my

Company X.

new

Now, what wou'd be accom¬
plished by A under this proposal:

First, A would receive $7,000,000

for

tax

or

either

our

ac¬

counsel?

■

Something New
Two weeks

"Times"

the New York

ago,

printed

concerning

article

news

a

the plan

of

utility
which presents some new
and interesting thinking. Accord¬
ing to the article, this company
a

company

to

proposes

reclassify its present

stock

common

into

two

Series, A

Stockholders

B.

permitted

would

be

to

split their present
holdings between the two series in
proportion they choose.

ar,v

Series A

would

only stock

pay

the

inventory sold.

dividends.

pay cash

stock
A

dividends

would

be

The value of

issued

equated

In

addition,

convertible

Series
into

Series

on

annually to

cash dividends issued

on

A

Series B.

would

Series

B.

be

Also

according to the report, the plan
had the approval of the
Treasury
Department.
This

You, Company B will
of Company X, and if
may have a long-term
but

moderate-sized

dividends, while Series B would

will then have $3,000,000 in cash,

ment

for

closely-held corporations desirous

period

of years.

of

^

and

pany

term

have

financial strength and diversifica¬
tion of product and profit. I cannot

First, you and I will form
company called "X," into

is

;

the

quoted

purpose

of

the plan: "The plan was designed
to enable the
company to finance
much of its future expansion and
construction program out of re¬

tained

earnings, and at the same
diluting or otherwise
penalizing ; the stockholder's in¬
time

avoid

terest.

Now payment of divi¬
dends in the regular cash fashion
on
Series A would furnish the
.

.

.

with

company

in

retained

at

least

$6,000,000

earnings

for

addi¬

tional

plant expansion and prop¬
erty acquisitions over the next 10
This

increase

in

would plough back
$5,000,000 for investment in the
new
Company X, but even after

years.

that investment would

$12 to $14,000,000 range."

Second,

A

still retain

have

been

with

some

discounted
other

for

cash

investor.

Re¬

member,

Company B was locked
in with a long-term
management
contract, and its credit guarantee
of Company X was implied.
Fourth, A could orfer its s'o.kholders

a

dividend

in

stock

of

Company X in lieu of cash divi¬

mately $17,000,000 in cash, as well
as
retaining for its individual
stockholders

a

50%

interest

val¬

ued at

$5,000,000 in the

new

pany.

Fortunately,

unfortun¬

ately,

sale

of

this

had

it

deal
been

or

never

com¬

came

off,

consummated

it

equity

in turn, support [the

additional

bonds

in

the

Conclusion
While
some

the

of

some

economic

year

1956,

I

convinced that

us

about

thoroughly

am

our

shovr continued

have

may

misgivings

economy

will

dynamic growth

during the next two

to five years.

Population increase, buying power
based upon higher wage
rates, im¬
proved <•- manufacturing'*" technol¬
ogies, development of new prod¬
ucts

and

industries

naturally

tend

economic

By these four stens, A could
have provided itself with
approxi¬

but

capital will,

*

Third, A would accept $15,000,000 of long-term notes, which
after
seasoning could
probably

company.

nancial structure of the company-

To

Broader

Spin-Offs

Spin-offs can and have taken
many forms. One of the most in¬
teresting proposals I have heard
concerned Company A. Company

dends.

buying
analysis

out

(b)

The

$2,000,000 of net cash proceeds.
an

have

excess
or
inactive cash held by
resulting from the re¬
one of the parties to the consoli¬
placement of preferred dividends
dation as a means of financing an
by
tax
deductible
interest on
undercapitalized but profitable
debentures
permitted
the
pur-,
business contributed to the mer¬
chasing company to show a very
ger by the other party.
If prop¬
satisfactory return on investment.
erly thought through, the result¬

in inventory, and $15,000.000 in fixed assets for a total

Several years ago a corporation

reputable

a

leverage

consider¬

think

ment market

ex¬

condition.

securities

poration may provide the invest¬

the company

and

sold

$7,000,000

capital
our

funds

was

it purchase from me the inventory
for
$7,000,000.
This will leave

available-for-sale showed

offer

available

consider this

may

Locate

whose

closed corporation into the pub¬
licly held one. The resulting cor¬

limit of its

the

un¬

public investor acceptance. Offer
a fair plan of
merger which would
provide for the merger of the

selling

poration from stock subscriptions,

tax

holders

distribution industries.

—

within

the

corporation,

ready market for its

a

possibility.

is¬

the possibility of reduction
rates
further
improves.
Looking,
then,
several
years

in

Acquisition

can

prise through adopting affirmative and
socially con¬
structive
programs to promote the
efficiency of our

to increase the

company

which

of

stock

be¬

Investment

an

firm

now

to

Reducing the Cash Outlay for

perform a service of great
value to the nation and to the
system of free enter¬

employ them."

common

cash

creation
a reduc¬

without penalty. By means of this

Montgomery

San

the

A closed

securities

own

done and with % of

was

have

illustration.

Merging for Various Purposes V

able to find

retired and re¬
placed by a satisfactory debt issue,
the purchaser was able to acquire

which

the

FRANCISCO, Calif.—John arrangement, the company
Bailey and Ronald K. Witter complished its objectives of

and

capital

activity-and-profits (subject
to the usual qualifications) there
ness

seemed

teamsters

busi¬

of

rate

SAN

changes.

That

for

bigness?

market

The

and

stockholders of those companies

With Dean Witter Co.

reducing with

discrimination,

and

panies.

E.

,

beginning step

tions

decided

have become associated with Dean
Witter
&
Co., 45

whatsoever

diversified

earning potential and
stability. Is it not
therefore possible that more and
more
risk capital may
be pro¬
vided
through
the medium of
large, well established corpora¬

Russ Building.
Miss
previously with Hanna¬

re¬

and would cost the Treasury $2.5
billion.
"A

—

ex¬

any

their

financial

some

(Special to The Financial Chronicle)

with

5,600,000 taxpayers from

of

established

stock

con¬

revenue

therefore

established

currently for reinvestment.
May we now review
briefly

Merrill Lynch Adds

of about

report

in

than

dif¬

proposals for raising personal
emptions $100, which would
income

staff

Inc.,

Wade

greater

revenue

the Treasury

the

trasting this

lieve

Clark

five-year Montgomery Street.

the

They

investment

also:

the

Pierce,

a

losses.

risk

because

to

proportionately,
in
from a given filiated

first step in
plan would make

billion,

Mr.

FRANCISCO, Calif.

revenues

A

provides

companies, with diversified earn¬
ing potential and with reasonable
financial
stability. Such compa¬
nies can attract new risk capital

able

possible

set of tax rates.

ference

Talbot,

Lewis M.

Federal tax

$2

&

(Special to The Financial Chronicle)

by the expansion of the economy
—which results in

tive

favor

Kathleen C. Wade has been added

proposed

and

too little credit tor their prospec¬

greater

granted from the

has

NAM

Street.

H. L. Jamieson Adds

retirement

high discriminatory rates.
-

Hannaford

Co.

it would not be fair to make ev£n
more

of

earnings,

claims

prospec¬

grow

FRANCISCO, Calif.

will be

used, automatically, to re¬
publicly held debt.
The $2 billion reduction will be
adequate at this time, the NAM
spokesman continued.
He added

risk

reason

law

tax

part of their

a

national

(Special to The Financial Chronicle)

O.

present

or

companies,
with

feel

possibility of
of Federal surplus and

iAVith Hannaford Talbot

George

the

for

those in oil

as

exploration

large

tive

Except

acceptance.

the preferred

retire

sue.

the

exists

Co., a member
change.

SAN

to

would

*

classical

Market:

position it should issue longdebentures, and with the

proceeds
has

scarcity of risk capi¬

investors

that
too

summer

bank credit.
Mr.

investor

their

At present Mr. Peck is a

to

Present

native New Yorker,

a

21

2, 1956. Less
than three weeks later he applied
for membership. His father, Bar¬

Goal."

chief characteris.ics of the present

old,

change's youngest member when

March

certainly
a

(a)' To Provide

gested to the other company that
as it was in a very strong finan¬
term

Bigness

tal for new, untested ventures or
for ventures which may not have

most

Stock Ex¬

un¬

holder's

observation

second

mineral

years

the New York

reached

a

Youngest

Member of N. Y. S. E.

flation.
"To the

The

can

cial

Taxes and

do with the

they

equity

such investments

the

danger

stock

common

fairly dilute the
position.

expan¬

up

horizons
and

into

provide greater assur¬

needed

and

most

9

page

Corporate Financing Methods,
Principles and Practices

counter-

William J.

ufacturers'

from

come

of Federal

Head of NAM taxation committee contends lowering
levies

Continued

Inflationary!

Thursday, March 15, 1956

activity.

funds for
cial

this

managers'

to

search

and

our

provide

for

continue

ingenuity

handsome rewards.
of

To

fascinating challenge.

tion

will

growth, the finan¬

tional capital will
a

aU

increase

be

Imagina¬

will

But

addi¬
to

offer

one

word

advice—"Never get your

neck

stuck out too far."

:

Volume 183

Number 5516

Continued

from first

Point

page

Number

Because

Two:

at

how

the

question
of

much

arises

differential

a

public will be willing to
premium for the extra

American Home

As

we

into

move

the

the

device.

so-called

the

still

electronic

communication

American

homes.

to

has

Measuring

been undergoing development for

nearly two decades, but its stand¬
ing in 1946, for example, was no

early

of color

» some

•

this

figure

latter

along with the fact that color has
been in development since that

in

clamor

tne

man

stature

the

slightly

to

World

that,

i

II, we might recall •
1947/ only 175-thousand *

monochrome' television

the retail market.

on

way

of comparison, the an¬

By

reached

at

000

last

.

level; of 7,800,-

record
year.

-

In

;

:

retrospect,,

prices.

mous

a

as

television was pretty
cradle industry in the
1940's.
Yet, despite its in¬

late

a

fancy, there still

the

push

to

pressure

better

the

hue

great

and

that,

eriect

to
though the

<

far from

-

cry

even

monochrome market:

was

at

arose

mature; if color television were
technologically feasible, then the
American public':was entitled to:
have it. What most people forgot
Was
tnat
feasibility and appli-'.

aitord

can

be

cannot
range

there

Where .it

could

most advantageous

will

You

in, which

applied in its'- businesses

be

than

servd1

forms.

I

recall,

certain,

am

as

vehicle;1 ■ to

a

we

"v

customers.

strike

the

4,600,000

income

through holes in

$7,500

per

house¬
at

in the trade, prin¬
it has been the
only one available on the market
in quantity. v';
>
\

ited acceptance

more

They

year.

cipally

also

is not

start selling to people whose
are
less
than
$5,000.
Based
on
past experience, they

Post-Acceleration Tube

incomes

in

.* •

contend

that most

people in this

latter

category will not buy tele¬
vision sets costing more than $500.
.f

Price Barrier

V

By

now,

answered

probably

have

you

noted that there

are

questions

a

because

,

until

lot of

un¬

in

color tel¬
evision-— and that each question
leads to another.
For example,
when can we expect to break this

Also

three-gun

the

in

cation

is

a

classifi¬

in

General

tube

we

the "post-accelera¬
This is so-named be¬
cause the electron beams, directed
at vertical color-phosphor stripes
inside the face of the tube, are
accelerated after passing through
a
grille located in close proxim¬
ity to the phosphor screen.
The

Electric
tion"

men, no one

this

ability.

people.

Common Slk. Offered
Public

call

type.

offering

525,000!

of

shares of Long Island Arena, Inc.,stock

common

Dunne

at

a price of $1.50
being
made
by,

is

share

per

of

dots

re¬

you

will

bring

market? The

that elec¬

the fact

from

name

because

Long Island Arena

,

red, blue and green
phosphor after passing
a mask inserted
between the guns and face-plate.
The shadow-mask has gained lim¬

the point: Just

up

say that the mass potential
reached with any product

pay

color

tapped

its

mass

with

holds

this
price during 1956—but they will
be mainly
the "carriage trade,"
cability were two different things.: where the economics of the prod¬
Sure, color was feasible.- But we uct is' not a factory, or people
wno
run - restaurants/hotels,
or
were a long way from the point

;

brings

represent

pay.

people who will

are

be

In the
opposite

time is a three-gun
type known as an aperture mask
—or
"shadow mask"—which gets

people say that the initial
purchasers of color television will

nine hundred
isn't it.
True,

to

seven

—

will

of many

at the present

search

certain.) The current

dollars—certainly

certainly

This

average

Exactly what that price is,

-

an¬

In other words, the mass

what is the

reception

to

sets

trons

accom¬

the

color

long before then.

possible

color

price

a

is

million

five

true.

miracle"
the"

a

less com¬

"CThe tube most extensively used '

holds

By

market

even

be

can

make

to

consumer

that

television

much

available

ahead of itself.
\ A

color

plished

business

recognizing

that

and

considerable

was

in

*

so.

nually.

time—but not at
And therein, lies the

much of

figure

latter

I do not believe

employed

the

just

tube,

one-gun

television

color

"passing
possible. But,

demonstrated

plex circuitry is required.

five

1960, the industry should be sellins

present

yardstick,

this

still

Week, those now

with

up of r
has yet
Solu-.
tions to the technological prob- \
lems of color television, like those;
to all engineering problems, must
come-from the long, hard work

frequently.

In the three-gun tube,

'

reply to the other two questions:
The industry is virtually unani¬

using

off?

years

Color television is available

the

low

with

wrong

is

news
television in

tube"

"one-gun

are

that

were

a

pass

of the other engi¬
now observing Na¬

many

who

wish

two, you have
"three-gun tube"

very

and
.

concerned

or

terms

and

market

mass

television

year

the

dramatically:

back

tional Engineer's

reading

in

r'ar

just ordinary

be, and vice-versa.

past

seen

Connelly's

chassis engineering field is made

the

complex

more

Undoubtedly,

five years. Does

the

that

mean

for.,color

color
today that more tech¬
development will not

nological
cure.

a

is

television

nual retail sales of television sets

this

tube makes

picture

accounts about color

time consump¬

a

tion of just under

Carriage Trade

Nothing

receivers

sold

were

•■'.V

down

work

This period—from 1956 through

War

in

the

dif¬

than 25%.

1960—represents

.

.

well

more

The

one

the

an

.

1960—this

Mass Market

television at this very moment' To

-get

in

could

ferential

1940's,

late

must

of

(/- you
are
undoubtedly
ready to ask:-'"What's wrong witn
idea of just how small the color television? Why hasn't it
television market really was in' grown more rapidly? What's hold¬
the period immediately following ing it back?"

greater

up

numbers—say,

vision market.

our

Television

of the total available tele¬

2V2%

of

medium

major

Like
neers

part; the circuitry of the
chassis represents the second. The
less work we require of the tube,

market," it is generally es¬
timated that this spread will be
in the neighborhood of 40%.
As
units
are
produced
in
greater

jest

miracle."

know, a television
essentially a two-part

is

said

characters

"I'll

you

receiver

service.

"class
■Was

of

most

pay as a

the

circuit'

and

"tube

mention

We

Mark

from

"Green Pastures" in which one of

engineers" in combination here
for a specific reason. As I'm sure

to

as

lines

going ahead.

higher price than black and

a

white,

definitely has been

cuit engineers

color television must be marketed

Color Television in the

49

(1337)

The Commercial and Financial Chronicle

...

& Co., of New York City..
proceeds from the finane-,

The

ing will be added to the general
funds of the company and will be
available
for
general corporate
purposes, including the construe-,
tion of

an

Overall

arena.

construction

of

the

arena

cost

of

and

of,

it for . operation, , in-£
eluding parking facilities but ex-r'
eluding the cost of the land, isy
projected at about $700,000. It is;
equipping

estimated that proceeds from the;
sale of the shares now being of-;

fered,.
with

if

all

funds

ficient

to

sold, together
hand, will be suf-;
the entire cost of.

are

on

pay

the construction of the
of

arena

and

equipping it for operation.
Long Island Arena, Inc.,

>

-

.

or¬

jubilation didn't last very
That "first era of opti¬
mism," as some writers have come
to call it, evaporated when it be¬
came
apparent that a technolog¬

year

ical barrier existed in color recep^

progressed in its early years, and
am using the history of black and

tube has two ganized on March 25, 1954, in-]
tends
to
build
and
operate an
Electron optical
indoor arena
for sports
events,
masking
is - used
instead
of
civic and com¬
shadow-masking, and the color- entertainments,
$500 figure we have been talking
mercial
events
and
recreational
selecting electrode has extremely
about?
There is nothing on the
activities. The site for the arena
high transparency, contributing to
horizon to justify predictions of
picture brightness.
Larger me¬ comprises 22 Vz acres and is lo¬
a phenomenal step forward along
cated
in Commack,
Smithtown
chanical tolerances are possible in
this line in 1956.
manufacture
and
this,
coupled Township, Suffolk County, Long
If
we
assume
that
the
$500
Island, N. Y. All necessary ap¬
with simplified convergence cir¬
price will not be reached be¬
cuitry and simplified components, provals of the plans for the struc¬
fore 1957, then how many color
been
obtained
and
will
permit cost-savings.
Pilot ture have
sets can the industry be expected
on
the
foundation
was
production of the post-accelera¬ work
to produce in 1957? If more than
started in early December, 1955,
tion tube will begin in our Cath¬
850,000 receivers are made and ode
Ray Tube Plant at Electronics according to the company. It is
sold on
an
industry-wide basis Park in the last half of this year. anticipated that the arena will be
next year, we will be happily sur¬ The
in operation by September of this
purpose of this pilot run will
prised.
Present indications are be to gain manufacturing expe¬ year.
J '
" -•.
y ■'
>.
'.
that the million mark will not be rience
and
work
out
technical
reached until 1958 and it may be difficulties.
The output of this
Joins Du Pont, Homsey
1959 or 1960 before color "equal¬
production probably will be under

white

izes" with black and white in to¬

the

which

battles

bitter

forties

the .late

The

raged

in
and early fifties

within tne electronics industry

a

industry hasn't

because

color

made

even

dent in this market,

principally

programming,

up

until this year, has not been

be transmitted.

heavy
enough to accelerate the demand

member the

for color

vailed

lieve

'as to how color television should
And you will re¬
jubilation which pre¬
when. industry - technical

reached on a set
of
compatible
color
standards,
which made it possible for color
transmission to be applied to ex¬

agreement

was

monochrome

isting

al¬

receivers

of

conversion

the

without

sets

The

long.

great as the roadblock
we
had hurdled in transmission
standards.
The industry still did
not have a color receiver which
could be delivered to the public

.

just

as

economically enough to meet the
demand of the mass market.

optimism, we went into a

From

period of pessimism—and we have
been growing out of it ever since.

bring

any

Sets

Color

Sales

estimates

Industry
this

to

as

how

sold
considerably. On

color receivers will be

many

year

the high

vary

side, there are some com¬

panies which believe that as many
as
a
half million sets will be in
use in December of this year.
At
the other end of the pole, there
been

have

guesses—my

cluded —that
will

amount

retail sales this year

color

year s

'

this

may

35

If you
progress in

thousand

color

receivers

ac¬

United States.
However,
if you consider the
''animal
as
a
whole,". perhaps
your- viewpoint would be slightly
different, because, while the ex¬
pansion of color selling this year
will
represent
steady, healthy
tually in use in the

"

growth, we must remember that
the total number of sets sold at
retail

will

still

amount to




only

first

half

1956

of

and
the
growth which
in the latter part of the
will not be instantaneous but
purely normal.

ligible,

I

come

the

use

I

cause

the

be¬

again of
television

once

monochrome

way

we

"normal"

word

mindful

am

rule-of-thumb for what

as a

expect, at least in the im¬

may

mediate

future,

dimension.

of

The

our

TV

new

outlook

present

is that color will not pick up real

speed

until

the

life
wnen it is three or four years old
—much the same pattern as that

which

was

point

its

in

characteristic of

mono¬

By this criterion, color cannot
expected to become a factor

of major importance in the elec¬
tronics industry until 1957 or 1958.
The

remains

fact

there

that

are

still many technical and commer¬

cial problems to be solved.
The

commercial

have

already

problems

outlined

we

briefly.

They defy true measurement be¬
of their close inter-relation¬

cause

ship with technological problems
well.

as

lar

Like the

song,

currently

"can't

you

without the other,"
certain

,

popu¬

have

one

-

points

have

been

made clear in the commercial sit¬

which

uation

bear

night.
Point
color

to¬

is

One:

"extra,"

an

to

Because

and

an

adds

a

established

service, it will always cost more
than

ice

units

tal

sales

sold.

wil

After

pick

up

that,

retail

substantially,

upward to 7,000,000 sets
a
year by 1964 for color
alone.
From this, you may gather that
moving

the

future

of

color

American

the

television

home

is

in

to

public

black

will

a

be

white, and
torn between

the
the

or

having

post-acceleration

;V Those

are the commercial con¬
siderations. Now, what about tech¬

We said earl¬
industry has found
itself facing an engineering bar¬
rier as far as color reception is
concerned. At the same time, how¬

nological progress?
that

the

the fact that color has not
as swiftly as we would

ever,

advanced
like

has

not

been

a

case

of tech

¬

nological inertia. Far from it. If
you consider the work
done on
transmission standards by the in¬
dustry at large from 1950 through
1953 as but a small sample of the

expended, you
uncertainty
as to how much engineering effort
is now being poured into color
television to break through the
effort

joined the staff of du Pont,
Homsey & Company, 31 Milk St.,
members

now

the

New

York

and

BIyth & Co. Adds

that

emphasized at this

the

post-acceleration
currently

(Snecial to The Financial Chronicle)

BOSTON,

Mass.

—

Clifford

A.

Clark has become connected with

development in the
industry as a whole.
There is
work being done, for example, on
two versions of a single-gun tube.

Blyth & Co., Inc., 75 Federal St.

being

highly precise timing
mechanism permits the beam to
be turned on only at the exact
time
it
is striking a particular
color phosphor called for by the
picture.
In the other, a single
beam is color-deflected by a grille
In

It is true that one of the limit¬

years

Now With Estabrook
(Special to The Financial Chronicle)

a

The

poir>t
here

make
have

we

is

BOSTON,
Rogerson
brook
was

several

subjected to a large
engineering effort and,
the problem is not com¬
of the

severance"

"technological per¬

which

is

a

of the electronics field

hallmark

for successful mass

We strain
we

status

against

measure

that lies before
it

were

as

the
us.

simple

vast potential
Often we wish
as

Co., 15 State Street.

He

formerly with Coffin & Burr,

Planning

'

BOSTON, Mass.—Walter B. Le.
bowitz, Albert E. Pickell, Bernard
D. White and Charles Yip have
become

associated

with

Investors

of
New
England, Inc., 68 Devonshire St.
Corporation

Planning

Two With A. C. Allyn
(Special to The Financial Chronicle)

.

A.
Bronson, Jr. and Roland E. Rich¬
pro¬ ards have become associated with
A. C. Allyn & Co., 122 South La

impatiently at times,
our
present

when

E.

Esta¬

(Special to The Financial Chronicle)

nological problems and the indus¬
try knows that tubes are possible,
which can lead to the cost savings
duction.

Charles

with

today.

Progress is being made toward
solution of our remaining tech¬

necessary

—

now

to

pletely solved, this effort is illus¬
trative

is

Incorporated.

tubes

been

while

&

Mass.

II

With Investors
trying

are

that

amount of

a

Laboratory Work

one,

in front of the tube.

remaining obstacles.

pending

of

Boston Stock Exchanges.

tube before 1957.

undergoing

further
developmental
progress.
But there has been no
comparable deferment in the lab¬
oratory.
Work by tube and cir¬

room,

the

has

tube is not the only one

Considerations

a

other

in

of

duction

point
Technological

single color receiver at a higher
price. We should not lose sight
of the fact that there, are many
who will choose the former.

every

set

We do not expect mass pro¬

It should be

ing factors in the past couple of
has been the attitude of
many set manufacturers to defer
extensive
production
planning

prospect of having/gn inexpensive
television

year.

BOSTON Mass.—John C. Hanna

Single-Gun Tube

Therefore, it
competing serv¬

and

monochrome

they probably will not reach re¬
ceivers for the general public this

bright.

ier

(Special to The Financial Chronicle)

1,000 tubes in 1956. These will be
as industry samples but

available

rather

monochrome.

always will be

.

-

will brush away your

Number

dimension

new

repeating

~

acceleration

.

II

be

-

basic advantages.

...

few years back.

a

But

be

evaluate this
terms of last
year's market, the answer assuredly would be affirmative. For,
at the end of 1955, there were only

jecture.
'•

'

consid¬
successful
introduction to
television is a matter of con¬

Whether

ered

like

something

to

150 thousand.sets.
*

in¬

own

the

for

will continue to be somewhat neg¬

Sales

1956—and where do
we
stand now? Well, let's make
another measurement.
it is,

direction

this

color sets to the market this year.

chrome

Here

I do not be¬

be¬
will
torrential movement of
in

made

will

ready in use.

tion

ing

reception.

that the present efforts

post

the famous

CHICAGO,

Salle

Street.

was

Mr.

with

formerly
Jackson

ILL.

&

—

Perry

Bronson

Webber,

Mr.

Richards
Bank cf

Curtis.

with First National

Chicago.

was

Paine,

50

The Commercial and Financial Chronicle..

(1338)

will

units

Continued from page 3

be

sold, at

total of

a

The sale of entertainment
radios

The Electronics Industry:

very closely, of course, to
the rate of automobile production.

It

does

.least

predictions

Those

the

of

future of the industry as a whole.

that

Electronic Industry's Composition

think will

factors

the

of

some

are

three

contribute

with

Television

In

considering the amusement,
national defense, and industrialcommercial aspects of electronics,
we are
thinking in terms of end
products, which means that there
are

two

corollary fields to be con¬
sidered. One is the manufacture of
the electronic components from
which
these
end
products
are
made.

We

dence

about

two

tele¬

that

and

set

,

In 1956 we're not predicting a
sales volume that will surpass last

major

—radio

receiving tubes and tele¬

picture tubes—and have
clear

view

a

the

of

resent

total

a

of around

pf $137,000,000. In 1965, it is expected 6,000,000 auto units will
f

sold

be

at

—

of

volume

dollar

a

- -

ing plane contains thousands of
electron tubes that perform a host
of functipns.

v-~ -

'

.

Defense

purchases of electronic
equipment last year are estimated
at just under $2,500,000,000, and
the total may go up another
this year. But, as the Army,

and

Air

As

Navy

electronified,
we
foresee
purchases
in
the
vicinity of $3,200,000,000 a year in
the 1958-60 period, and at over
$4,000,000,000 a
year
by
1965.
These future figures are only es¬
timates, and it is quite possible
ingly

government

__

that government purchases could
over
the
decade.
And,
forget, this is based on the
assumption of no shooting war.
double

pointed out previously, we

Industrial-Commercial Electronics

the

of

two

important

very

components going into these elec¬
tronic

certainly
is the growth of the sec¬
way

devices. I

referring, of

am

other groups of
components, such
as crystals and special tubes. The

and

other corollary consists of the de¬

before color sets will be marketed

velopments that have made elec¬
tronic end products possible, and
our information here varies1 from

about six years before color- tele¬

are

vision

excellent to not

black-and-white.

is

It

entertainment

that

true

electronics

offer a
great future potential—but, • then
production
and
sales , in
these
military

and

stance,

good. For in¬

an

have

we

excellent idea

of the number of television and
radio stations, the extent to which

police

communication

has

been

electronified, the number of short
wave

taxi

riety

radios, and a great
specific data that

of

known

because

nications
records

Federal

are

Commu¬

Commission

are

va¬

licensing

available. We have

a

reasonable amount of information

ond-set idea. It will be
in

in

communi¬

our

information

about

developments that would help to
furnish

trend in the industrial-

a

commercial

field.

There

is

little

data available on such things as
the electronic computer
business,

developments in the application of
electronics to industry and the like.
Within the field of entertainment

electronics, television is, of course,
monumentally the largest factor.
A few of the gloomier economists

have described

dustry,

as

far

fnnnornoH

O o

concerned,
tually, the
far

from

the

television

future

as

noct

ifn

past

as

its

sales

are

nnol.

A

n

its peak. Ac¬

television

past

in-'

industry is

peak

It

is

a

brisk, zestful, very young indus¬
try—"a
billion
dollar
baby"—
that, believe me, over the next
decade will have
it

than

there

more

has

growth in

been

from

inception of television to the
ent time! It is

the

pres¬

healthy and sound.

Furthermore, 1956 will be

no

ex¬

ception.
We

expect that

some

will be just as great
of television homes
of

radio

there

there

as

in

today
radio
set

47,430,000
the

United

States.

Of

those radio set homes,
nearly 74%
also have a television
set. This

high

percentage

with

the

figure, coupled
that virtually the

fact

entire country is within range of
a
good television signal, means
that
television
is
rapidly
ap¬

proaching

the

saturation

point,

which is the point at which virtu¬

ally every home that is going to
have a set already has one. But
don't

let

mislead

that

word

Let

you.

"saturation"

point

me

only.

For

example, how much
automobile industry to¬
day rely on selling autos to per¬
does

the

sons who never owned a car be¬
fore? Not very much. Initial sales

rapidly
tance

are

in

losing

the

their

television

impor¬
industry.

Assuming marked significance
such

factors

cence

of

homes,

the

where

coming

television

today there
from

are

wearout, obsoles¬

sets, the number
and

second-set
as

as

are

two

of new
era

of

homes, just

home with any¬
to

a

radio sets.




half-dozen

sets

sold

of

future

healthy

tubes

rests

market

installation

of

new

for4 industry,

equipment

tronics

commerce,-and-others nonrenternon-military uses. The
the receiving tube business- figures are. not as impressive as
replacements

as

for

tubes

that have burned out. Before the. tainment,

market

entirely

sets

the

,

,

war,

carried

some

of the other areas, but they

assumptions which I believe
along at a rate ranging;
very realistic regarding
the* from $10,000,000 to $12,000,000 a were about $670,000,000 of sales
vil
a4
Vl
in 1955, and will reach an estiincrement of saturation, the im¬ year; But that market has
ex¬
pact of the second-set home, and panded into a business, including mated $800,000,000 in 1956.-But,
the normal wear-out or obsoles¬ both receiving and picture tubes, by > I960,
we- anticipate; annual
cence of sets in use. Even though
that .exceeded
$200,000,000:' last sales in the industrial-commercial
on

are

2

_

1

_

the

A '

number

of

il

^

•'

.

non-television

potential

m +

-L

A

Wl

A

»•

n

Mir

is expected to be above
$375,000,000 by 1960; and will go
to $625,000,000 or higher by the

declines appreciably each
these factors indicate to-me

long-term

9

year;

homes

the

V

.

The last factor in entertainment

tween

7,000,000 and 10,000,000 sets' electronics devices is records and
through the next decade.-phonographs, which should main:
'
tain a fairly level volume of sales
Radio Sets
^
0f between'$120,000,000 and $140,Add to this market, the normal 000,000 a year, at a minimum,
healthy demand for home radio over the next decade.- In fact, I
sets and auto radio
sets, and. it is have heard the high fidelity marapparent that we have a very ket alone described a3 potentially
healthy industry in those fields a $200,000,000 business, f
that are commonly referred to as
" These totals are impressive. The
amusement devices. The total fac-; electronics industry sold $1,386,-

per year

.

.

tory door value of these

of

has, in the past year, aggregated
less than 1% of the public's
per¬
sonal
consumption expenditures.
1

4.1

This

t

rrf

f

-

to

seems

'

1

.

be one

I

,

•

1

more

1

indi¬

cation of the conservative nature
of our predictions.

Looking fur-

performance of the electronics in-,
dustry is the revenue created by
the sale of end products and parts

through channels of distribution.
You will note that where I have
annual sales for various products,

"factory-door" price levels. Be¬
yond this, there is, of course, the'
"mark-up" which the distributorand the dealer places on the prod-'

slightly
revenues

just

large.

_

look

But

few

a

decade hence

twice

what

it

is

v.V/v-:

•

those

but

really

computers

not yet

are

in off ces,

common currency

laboratories, and factories,
will be
be

for

used

thev

as

day. Television will

some

control and
safety in the factory, and in the
home

quality

will

]

£•

1

watch

• 4

the

kitchen

matic

v.^

virtually

process

an

auto¬

electronic

one,.,Manv

de¬

hazard

$1,800,000,000

highway- travel—electronic steer¬
ing on high-speed, suoer high¬

we

to

over

the' 19u8-60

a

period,

electronics
is

ment

rather

terms

in

but

one

minor

Entertain¬

phase—and

phase,

the electronics

these

of

of

out

Electronic

examDle.

for

the

to ' take

discomfort

and

ways,

equipment will make airport ooerations virtually fooloroof. These
only a very few of the reasons
why we can say there is no ceil¬
ing on the potential of industrialare

commercial electronics.

When

industry.

Total

the

all

Sales

Government and Electronics

sale of all electronic en-* n^oducts

By far, the largest customer of
the

in

1955

totaled

the

public, it is expected that
something like 31% of the sets

ment

and should show a

will be color sets in
1960, and that

of

by

tional

men¬

1965, color will account for
72% of all sets produced.

about
As

you

can

color

see,

is

the

on

4

?!
radio

i

.

_

.

,

•>

off the

,

of about

pected
total

c£°wj*ec*

the

greatest

armed

this year. It ispredicted,
that
these J revenues1
should reach around $3,400,000,000*

$134,000,000, and it is

another
in

the

6,000.000

sets,

ex¬

at

vicinity of $120,-

ket surveys

show that

more

peo¬

ple than ever before are listen¬
ing to radio and that during the
daylight hours when the house¬
can't

stay in

radio is turned

on

one

more

ly than the television
indicated

that

in

the
frequent¬

room,

set. It seems

1960,

comprise '7.4%

the

tion

may

Much

the

about

that this

$5,300,000,-

,

a

$11,000,000,000 industry.*

from now,

will

we

in 1965, we are positive'-,
justified in calling'
an industry with sales-

be

electronics

and revenues totaling over $22,—
000,000,000 a year. - ;;-/ :
■
-. /
That is the electronics industry
-

It

was

came

for

national

higher.

Yet

work

of 43%, and
that by 1965, electronic end prod¬
ucts totaling about $10,350,000,000
will

part

electronics

playing in defense. The guided

missile

is

an

increase

sold.

That

but

will

defense.

electronic

weapon.

than

95%.

by 1960 it will be a $15,600 000,000
industry: and by 1965 it will be a

through yet.

After

considering

all
manufactured

products

the

The

a

tronic weapon. So

is radar, which
is "the eyes" of the pilot at night

year,

and in times of bad

are

industry, there still re¬
sizea^e business in the

nents for

production

as

and

sale

a

and will

more

and

placed in

continue

more

use.

nents include such

fires

of various types,

anti-aircraft

and

bom-

bardment guns that formerly were

of

compo¬

repair, which amounted
volume of $680,000,000 last

which, also, tracks the target and
the

have

more

That

decade it
than dcub'ed its
a

industry that will erow that
between row and 1955.

fast

Joins Keller & Co.
resnoAt*' to The Financial

BOSTON,

/

Chronic*e)

Mass.

—

John

J,;

O'Leary is now with Keller & Co.,
53 State Street.

With Lee Higginson
(Special to The Financial Chronicle)
•

BOSTON, ' Mass.

—

Hugh

.

;

W.

to

Corporation,

50

Street.

as

With Palmer,

Pollacchi

:

(Special to The Financial Chronicle)

BOSTON, Mass.—John A. Bres¬
now with Palmer, Pollacchi

cia is

& Co.,

84 State Street.

grow

pnd products
These compo¬

things

Higginson

Federal

end

in

electronics

to

industry.

within

present size. It is extremely dif¬
ficult to envision any oth°r major-

Lee

Repair Sale of Components

The proximity fuse that explodes
when
it
is
close enough
to a
plane to cause damage, is an elec¬

weather, and

that

Morse has become connected with

But we're not

mains

-

repeat, today electronics is
nearlv a $11,000,000,000 industry;
I

electronics
increased its

have

nowerful momentum;

gained

suddenly with the advent of tele¬
vision and the upsurge in national

that

means

end product sales by greater

new

the

be

industry

defense
of

read in the papers about

of

an

during the

own

and played a very great
role in helping to win the war/
After the war it sagged for a time,;

within the decade, the

day

examples

jsUcrbUv

because
every

reasons.

KQ

into its

war years

another three years or so, over the

000,000,

all

virtually unheard of prior
II, except for radio.

t^e aggreMp^pr. Hi

na¬

prooor-

or

wi't

ypar

one

of

electronics

not be discussed

security

is

this

increase to 10%

done

being

we

decade,

of

about

7,000,000 radio sets, grossing about
$133,000,000, will be sold, and that
by
1965, 7,300,000 home radio

,

three-year period,-1958-60,:
total sales will come close to $15,-'
000 000.000 a vear. And, ten years'

period, we expect the end
product total to exceed $7,600,-

Today,
govern¬
of
electronics

purchases

equipment

of

weapons

defense.

ment

may

000,000 will be sold in 1956. Mar¬

wife

is for the

forces. Electronics has become

Within

,

map? Hardly so. The
manufacturers sold 6,700,000 home
radios last year, for a total volume

a

purchases

government defense exoenditures.

way.

substantial in-'-

crease

however,

1958-60

I

as

in .1955;
$1,435,000,000/,

broadcasting " revenues
amounted to about

will

is

foregoing

lumped together, it shows that the

tioned before, that no more than
200,000 color sets will-be sold to

probable,

must con¬
of the",

the point of view:of-revenues. Television and radio:
from

business

means

Product

End

000 and

is

^*

sider the broadcasting end

$22,COO,000 000

a

that—of

at

expected

are

industry is the United States
Government, and an overwhelm¬
ingly large percentage of govern¬

it

,

To round out the picture of the.
electronics industry, we

In the

vices

today. The increase will, of course,
be attributable to a
steadily ex¬
panding number of color sets.
While

Broadcasting ^ Volume»

: ;

nearly

about

read

believe, will in-

devices,

entertainment devices.

sets

charges are expected to show,gradual increase from $930,000,000 to $1,000,000,000 this year, and ;
$1,685,000,000 ten years from now.:
a

the

have

all

We

ment

$2,000,000,000.

nearly

pass

ice

wizardry of the electronic com¬
puters that have been introduced,

years! The
average annual sale of entertain¬
a

of

be

to

$3,300,000,000, and should rise to around $4,<*00,000,000 in 1965. At:
the same time, repairmen's serv-i.

It

equally

for

that dohar volume will be around

will

and

1955,

larger in
are
expected

cooking

ahead

_ii-•

-

should
com^ very
$1,521,000,000. At the end of the close to $2 275,000,000. In a decade,
decade, in 1965, it is likely that we shall have increased our ensomewhere in the neighborhood tertainment sales
by over 40%.
of 11,600,000 sets will be
We homebodies are apt to think
sold, and

words, dollar volume

-

will be
1956. By 1960

in

volume

4

l

i

year during
and by 1965

other

$2,-

uct. These revenues exceeded

to World War

'

may be around 9,600,000 sets, and
that dollar volume will be around

television

at.

calculated

totals

used

have

I

stove and the nurserv. Electroni...in
mnl.n
4 Vi
fied kitchen ranges will make the

11-1

crease

In

:
.

in discussing

dollar figures

used

000,000 in end products for enterpurposes last year, and
this year is expected to attain a

tainment

ther ahead to 1960, we think sales

of

nearly 250% in a decade.
Another aspect of the over-all

by 1960, and at the end of the'
field will be running at the ap- 10-year period - are expected to'
proximate rate of $1,200,000,000, top $5,400,000,000.:; ://;/■
the
and; by 1965, the sales fieures
Total Summary
should
be
around
$1,900,000,000
or
even
Thus
we
see
that from the
$2,000,000,000. That is a
gain of 150%-or more within 10/ standpoint of sales and revenues,/,
the electronics industry is today'
years.

.

devices

$2,300,000,000, an increase

hood of

-

end of the decade ahead.-

for

television certainly will range be-

1958-60, the total should reach

$1,250,000,000. By 1965, we expect
this total to be in the neighbor¬

development work lies ahead, and

which some day will compare favorably with the others in dollar
built volume^-That is the field of elec-

are

aroundV the

previously, the

our

hence,

sider

about

...v

included in the cost of the set

and,

with

..

television

out

that industries seldom exist on the
basis of initial installation sales

up

Color

As I mentioned

are

homes today, and

are

homes

a

day there
percentage

catch

should represent
total set sales.

prediction
for

that

is

sales

1965

year,

line

unit

72$. of

At the low

cations

time

some

large quantities and it will be

concerning government purchas¬
ing for national defense in the
past and its plans for the future.
end of

to the xww....;, tube mar- areas already are immense. But
receiving
ket and the picture tube markets there is one area of electronics
Naturally, those tubes which come in which the surface barely has
with a new television or radio set been scratched, where most of the
course,

$800,000,000, while

not far short of

not included in
this report. However, we do con-

so

so

fall

pair parts sales this year will
in

200,000,000

have excellent industry data on at
least

knobs, etc. It is estimated that re¬

notch

increas¬

become

Force

Tube Market

the bihion-dollar mark

the

by calculation or by eye
fired manually. A bomb¬

were

don't

about $150,000,000.

factory-door value

for this year.
Coior is on

aggregat¬

6,000,000

x*

will be color sets. This would rep¬

components

another

total 5,500,000 at a dollar volume

new

a

record.

the

of

electronic

less

sets,

equipped

ing $150,000,000 will be sold this
year. AUto set sales in 1960 should

public purchased

black-and-white

be

will

cars

four

every

entertainment radio. Cur

an

that

year's, but we do feel that ap¬
proximately 7,500,000 TV sets will
be sold and about 200,000 of these

of

somewhat

vision

in

year

confi¬

groups

vision

Last year the

7,600,000

of

show ' that
7,000,000
auto sets, totaling nearly $175,000,000, were sold in 1955, and

Sales

with

talk

can

television

excellent

an

out

to /researches

1956.

we

certainty that at

a

seem

pleasure
from

be

will

linked

Its Potential Outlook
detract

automobiles

for

trained
and

nearly $140,000,090.

.Thursday, March 15, 1956.

tubes

With King Merritt

»

(Special to The Financial Chronicle)

PONTIAC,

Tracy H.
the staff of
formers, resistors/ speakers,-dials, King Merritt & Co., Inc.

capacitors, trans-

Stockman

Mich.

—

has joined

Volume 183

Number 5516 ...The Commercial and
financial Chronicle

Continued from page 11

teristics of everything from pack¬
ages to fashions and foods, from
colorful

The Outlook for Electronics
in both black-and-white and
color
was

and

developments such

tron

cover

microscope that have

out

of

our

a

in

but

I

tronic

swift

method

of

faster

than

We

present,

any

tional method.

-

from

conven¬

also

are

making progress in
the development of an electronic
cooling system; an electronic light
amplifier; the electronic music

synthesizer; atomic and solar

duction

interested

in

we

radar

botn

bat¬

for

its

that equipment will
here

live

be

am

der

work.

on

This

will

for color

vance

be

greater

arrival-time

-

dependability, increases the safe¬
ty and comfort of passengers and
enables pilots to ''see" storm for¬
mations

to

up

150

miles

will

you

and

more

see

on

business

RCA

most

on

airlines

and

aircraft.

has

long

been

active

in

not

purchased

by

Army

$4

the

for

U.

S.

It

for

use

at

Command,

will

be

Detroit,

used

for

control of replacement
parts for
military combat and transport ve¬
hicles. It will provide
speedy and
accurate information

supply of

Ordnance

television
in
„

1956

year

tne

will

become

item at
the

any

life

has

been

instilled

in

the

phonograph-record business
by the introduction cf RCA Vic¬
tor's

Orthophonic

new

delity

"Victrola"

struments

High

Fi¬

end

phonograph in¬

which

excell

in

the

for

second

a

color

two-and-one-half
"hi-fi"

times

instruments

as

as

many

during the

Brooklyn;

conversion

of

for conventional

version of

speed "Victrola" phonographs
tinues at a high level.

con¬

ing 1955 exceeded by nearly 40%
unit

of

the

Among important

year.

ucts

volume

now

on

the

size"

set

and

a

portable

new

market

all-transistor radios
size"

previous

—

hours

are

two

larger "personaldesigned for ex¬

The

new

Television

vision
era

which

is

moving

into an
of major expansion. RCA and

NBC

have

million
advance

in

in

spent

more

than

pioneering this
television, just

$70

great
as

we

spent

more
than $53 -million * in
getting black-and-white television

into the home.
We

now

have

the first complete

on

the

past

market

line of 21-inch

color receivers that range in

price

from $695 to $995. As demand in¬




number

year ;saw

color

ground"

service and become

With

us.

of the
whole.

value

with this
achievements in elec¬
you

record, give
1956

upon

confidence

us
as

a

of

year

of

color

COLO.—Norman

and

Leonard

S.

merchandisers

are

.also

at¬

Color is
lant.
are

It

—

a

-

■' >

reveals distinctive

as

they

charac¬

the Far West.

or

Large Far West Banks

with

;
•

D.

Thompson

are

now

Shelley, Roberts & Co., First
Building.

James Price Adds

12/31/'54 Ratio of

E.

has

20.3
8.5

Large Eastern Banks.....

A parallel

comparison of other data on the two groups, New
City banks and banks outside New York, brings out that
there is not great variance. There is given for a list of New York
banks

and

for

another

operating earnings

on

of invested assets per

2322

Ponce

PENSAC'OLA, FLA.
O'Donnell

•

de

Leon

"interior"

banks

the

1955

assets; and

rate

of

the amount

dollar of price, Dec. 31, 1955 figures being

used for both factors:

Rate of Earnings on Invested Assets
New

York

Bank

of

Chase

New

0.97%

York__

Empire

Trust

of

First Penn.,

National, Boston..

Phila
Mellon, Pittsburgh
First

Bank

Cleveland

0.77
0.97

National

0.84

City..
Trust

1.06

_____

First

First

1.01%
1.01

0.85

National, Chicago-

1.02

National

United

0.77

0.79

Corn

Guaranty

First

0.77

Manhattan

Chemical

First

Ouf-of-Town

Trust

Trust

0.59

...

Bank,

0.82

Detroit.
St. Louis

National,

0.73
0.96

0.95

Trust.

0.75

National, Dallas
National Com., Houston
Security-First

& Co.__

0.95

Bank of America.

0.82

Seattle-First

0.87

0.90

__

1.35

.«

0.96

States Trust__

Averages

1.48

9.19%

Averages

9.18%

Invested Assets Per Dollar of Price

Trust

Bank of

New

$7.45
York__

First

National, Boston.. $7.63

9.97

First Penn.,

8.86

Mellon, Pittsburgh

9.34

First

Empire Trust

8.18

Cleveland

Chase

First

Manhattan

National

7.48

Phila

Trust

8.54

National

6.19

First National, St.

Bank,

9.04

Detroit-

Louis

9.90
6.56

9.06

First National, Dallas—

—

8.00

National

Trust.

10.00

P. Morgan & Co.__

7.31

Bank of America.__-._L_

8.00

7.10

Seattle-First

6.52

Irving

Bank

7.52
13.05

City__

Hanover

5.67

National, Chicago-

Guaranty Trust......
Trust

Averages

5.20

Com., Houston-

Security-First

7.52

—

4.44

$8.03

NATIONAL
Bankers

has

—

Nolting,

Nichol

Head

Office:
End

London,

to

&

13,

St.

Inc.,

3024

BANK

Central

Government

and

26

E.

in

Uganda

Bishopsgate,
C.

(London)

$7.84

Averages

Branchi

James's

Study

on

Christiana
Securities Co.
Bulletin

on

Request

in

land

Protectorate.

Authorized

£4.562,500

Paid-Up

£2,851,562

Capital
Capital

Fund

£3,104,687
conducts every description of
banking and exchange business.
Trusteeships and Executorships

The

New

2.

Square, S. W. 1.
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somali-

Branches

Reserve

ST. PETERSBURG, FLA.—Rob¬
ert J. Shave is now with Security

the

Colony

West

Charles

been-added

to

Kenya

(Special to The Financial Chronicle)

Avenue.

of

of INDIA, LIMITED

With Sec. Assoc.

Associates,

list

year-end invested

James H. Price &

Company.

„

36.1%

York

(Special to The Financial Chronicle)

staff

15.8%

reversal?

become

With Nolting, Nichol

the

Deposits

3.7

New York Trust

*

Boulevard.

.

De¬

posits to Total

GABLES, FLA.—
Paxton

connected with

R.

Int.-Bearing

Interest-

7.2

United States Trust__

CORAL

Company,

The

question may well be asked, how well will the savings
deposits of t-.e "interior" banks hold up in any serious business

J.

(Special to The Financial Chronicle)

Branch

on

Chemical Corn

'

powerful sales stimu-.

presents "things

sections

12

Bank

National Bank

by the ~ power cf color
which gives aided sales impact to
all products from" automobiles to

holding to
when

are

these

Nine Large Midwest Banks..

Ring

tracted

'

Seven

Bankers

Howard

become

the -public is becoming
color conscious, advertisers

idea

area

emphasize

% of Gross Inc.

J. P. Morgan

DENVER, COLO.—Fred A. Cut¬
ter, Mathew Melonakis, Jr. and

and

While

to

Int.

New York Trust

M.

(Special to The Financial Chronicle)

being in¬

pictures

of the "growth"

continue

follows:

as

Manufacturers

Three With Shelley Roberts

increasingly apparent and are
stimulating the desire of more
people to acquire color sets.

candy bars.

averages were

Hanover

progress.

Bldg.

a

other advan¬

*

least

at

than those either in the Middle West

Bankers

Company, First National

tele¬

daily, the enter¬

and

is

*

-

-

deposits, and as to the ratio of interest-bearing deposits
deposits, the eastern banks were less vulnerable on aver¬

to total

national

commer¬

more

color TV receivers

tainment

and

industry will be

Two Join Shaiman

v

&

of

as

,

on

Manufacturers

"off the

behind

more

volume

;

get

tages

conservative

a

business

gain

our

Feldman

de¬

are

.

both

have joined the staff of Shaiman

programming by
forty, to eighty hours

stalled in homes

Now, last but not least by any
means, I will conclude by bring¬
ing ycu up-to-date on color tele¬

exists

(Special to The Financial Chronicle)

station..

facilities

the

DENVER,

•

cially established.TThe initial steps
more

.

color

double, the

month.

vision

-

and

Irving Trust_
_

con¬

,*

in

over

continuing

color

NBC—from

are

tremely long battery life.
Color

to
of

prod¬

"pocket-

a

added

signed

a

all

position,

that of today — or
than double the
anticipated

look

WNBQ, Chicago, to the

first

These

Sales of RCA Victor radios dur¬
the

world's

basis

New

and

.

previous twelve months. Demand

45-rpm and three

to

jacent to the NBC color studio in
York's Ziegfeld Theatre

the

as

—

—

66%

year on

studio ad¬

new

a

that

1964

thought:

and

t

sustained

a

discussion in early December in which it was brought out that
as
to the percentage of gross income necessary to pay in¬

a

and

tronics, radio and television,
which established 1955 as our best

City,

Burbank, Calif.;

than

more

continue

The

economy as a
I
would leave

the fall of

studio

manufactured and sold

new

—

firmly believe that by the

of

percentage

enter¬

facilities in Color

other

,

will

areas

•

funds go into bank stock holdings. Mere increase in deposit vol¬
ume is not necessarily an indication of growth.
This space carried

greater

ever

of the electronics

1955. This program, to be com¬
pleted by September of 1956, calls

reproduction of recorded music.
In
the last half of 1955, RCA

atmosphere,

But the proponents
their

Tomor¬

more

estimate

A

announced in

that

security.

We

•

network's color production facili¬
was

bring

know

tional

$12,000,000
program for expansion of the NBC
ties

these

growth is concerned under

their dreams of Yester¬

extensive develop¬
ment of electronics for the
home,
for industry, education and na¬

pany's five-fold expansion of col¬

medium.

acquainted with elec¬

confidence

far

a

more

an

us

will

We

or

tainment

have

for

industry. RCA
alone plans to produce more than

advance of color TV

as

Bearing Deposits

row

electronics

as

exist, or were
developed ten

years.

seen

some

requirements.
New

ten

color

see

economic

whether

And

far

so

Required to Pay

en¬

and to compute forcasts of future

nation,

adverse

age

we

television programming during
1955 gave great impetus to the

in

stemmed from

not

commercially

major factor

a

1955

day become realties Today

inventor¬ r 2C 0,000 color sets t!:is year.
The National Broadcasting Com¬
minutes the

any

depot

The

conditions.

ascendency

have

on

ies, to determine in
current

.

the stocks of banks

to which they have gone have

tronic scientists have deep
respect
for
their creative
faculties. > We

ing vast creative possibilities in
education, advertising and merchandising.

stock

sales in

Those of

States tertainment arts, as well as open¬

United

Army Ordnance Tank-

Autcmctive
Mich.

the

million

the

next

convey scenes
and action in
their natural hues. It brings a new

the

areas

so-called

talked

terest

to

dimensional brilliance

their buying in

The

banks

achievements.

of these Bizmac systems has been

done

City.

"growth" sections of the country. The writer
to portfolio managers of large insurance companies,
handling large trust and pension funds, universities and
investment trusts, and in many instances they either had light¬
ened up on their commitments in the New York City banks or
they confined any fresh buying to stocks of banks in the "growth"
areas.
These sections are where industrial expansion has been
great: for example, the West Coast airplane districts, the Texas
oil fields, the automotive centers, etc. Their plaint has been, gen¬
erally speaking, that the New York area is losing its position to
other sections, and that the growth factor is present less in the
banks of the metropolis.
Well, this may or may not be the last word on the subject;
time alone will disclose that.
For one thing, districts in which
growth is rapid and pronounced. do not fare so well under de¬
has

We expect to witness a
similar pattern of progress in the

of

developed "Bizmac," an elec¬
tronic data
processing system. One

to

earlier statement to the
that fully 80%
of RCA's

years ago.

immeasurably to the
telecasting by its ability

power of

to

some
cases

outside New York

pression

,

undertake

an

items that did

Color adds

the field of electronic computers.

of

total

also will feature color TV.

We

not

period institutional investors who
of their funds to bank stocks have in a

banks.

effect

National Television Week

sponsor

Outlook

will

sets.

were committing
large number of

b^en the

Bank Stocks

—

considerable

some

arguable.
Certainly
in the depression of the 1930's there was a greater incidence of
more-or-less necessitous preferred stock issues in the "growth"
areas
of that day than, proportionately, among the New York

you

Success achieved by those now color TV. In
September the Bos¬
using this a 11-w e a t h e r radar ton Globe's Electronic Show will
points to the probability that such highlight color television and the
devices
may
become
standard .Electric
Institute,
which
will

equipment

exceed

outstanding revenues to the
industry in the years
ahead, I would like to remind

ad¬

more

This Week
For

electronics

tainment and education.;
: : //
Thus the curtain has gone
up
on color television in
Boston, and

ahead.

By ARTHUR B. WALLACE:

duce

pro¬

of enter¬

source

I

will

black-and-white

today the long list of
potential new products and serv¬
ices that may be
expected to pro¬

television, because

interesting,

very

greater

enumerate

European airlines. The equip¬ Boston with its historic scenes and
improves operating economy ^American landmarks will
be.ia
assures

of

The

ment
and

sale

While

area can

great

a

of color sets

:

sure

TV

originating in this

of

before many years,

and

way

the

available

color

challenged to

are

the sale

be fed to NBC's nation-wide net¬

air¬

lines in the United States and

that

so

grams

being

commercial

long I

are

of

expan¬

put color TV in many millions of

three-

a

industrial

homes. The transition from blackand-white to color is already un¬

picture.

on its latest step to
pioneer
TV, for it is already equipped

and slides. Before

full-scale production of
all-weather radar which is
five

III,

boundless op¬

challenged to "get into
color" and develop and
design re¬
ceiving sets as prices which will

to handle network color
programs
and to present locally color film

launched

on

ers

pro¬

ulated

commercial and peacetime uses as
well as its
unparalleled role in
modern warfare. RCA has

installed

Richard

aware

beauty and interest. Manufactur¬

WBZr noted for its pio¬
neering in radio, is to be congrat¬

vitally

are

of

well

; programs

u c e

inven¬

new

are

development

and

Showmen

d

p r o

view,

on

for

ideas

new

sion.

Station

color

And, of course,

were

hour technicolor motion

teries.

four

New .York

including yesterday's feature

seek

they

color presents

portunities

New

Corps Cadet Armory.
Cutstanding NBC color shows

-.

.

that

in the First

thousands of times

process

Boston

ticipate in this enterprise by set¬
ting up RCA Victor color TV sets

making metal
pointing plates featuring a photo¬
graphic

in

Bank andlnsurance Stocks

is quickening the
broadcasting art and

tions because

welcomed the opportunity to par¬

elec¬

new

the

and

color

of the

tions. Scientists

WBZ-TV,

with

cereals

are

industry on all fronts. Its chal¬
lenge extends in various direc¬

than

more

England as part of
the Post's Magic Living Show. We

such as
transistors, magnetic tape
recording of television programs,
a

for

station

cooperation

held

—

electrofax,

Today
pace

Post staged the largest-scale color
television demonstration ever

might mention a few of outstand¬
ing promise for the future

and

increase

During the past week the

year.

Westinghouse

come

-Laboratories,

Boston

to

made more
attractive when identified
by their
colors.

prices will decrease.

air around

the elec¬

as

will

kitchens

soaps, all of which

Color television has been in the

New Developments

all

production

creases

pioneered and developed.

There is not time
today to

51

(1339)

Bank

also

undertaken

Laird, Bissell & Meeds
Members

New York Stock

Exchange

Members

American

Exchange

Stock

(20 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay
Bell

Teletype—NY

7-3500
1-1248-49

(L. A. Gibbs, Manager Trading Dept.)

Specialist.«

in

Bank

Stocks

'

52

The Commercial and Financial Chronicle...

(1340)

found

strong

recent

sessions due

market

speculation
sibilities

Railroad Securities
By GERALD

Western
has

Maryland

Western

The

On March 6 the

made news again.

directors declared a $1 per

road's

dividend on the
4%
non-cumulative
convertible
preferred
stock
for
payment
Marcn
29 to
holders of record
share

quarterly

March

but after having first
quarterly divi¬
the 7% first preferred.
tnese actions were no¬

19,

declared the $1.75
dend

on

Both

of

table, but one was epoch-making.
The
quarterly dividend on the
first preferred was the first in the
road's history to be on account of
current accrual, but the payment
on the 4%
second preferred will
be made

to

first ever

the

be

on

Both
were the

this stock in its long history.
of

developments

these

sequel to the road's recent previ¬
ous
achievement in working out
the means last Fall to liquidate
the

$108.50
arrears

on

share balance of

per

the

7%

the

first pre¬

the

28.

Maryland has been
paradoxical situation. In
spite of a funded debt load that
once
was
much higher actually
as
well as proportionately, this
rather

road

shown

net

a

back

far

nevertheless to have

was one

profit

every

as

year

would
think of looking, and this includes
the period of the great depression
today

anyone

aftermath.

its

and

as

the

Yet

road

had paid no dividend at all on

its

cumulative first 7% preferred un¬
til

December

$7

other

per

1936, and paid an¬
share in November

1937, but then let the dividend
lapse again until November, 1940.
During the whole 1940-1950 pe¬
riod

$7

year

against

in

share

per

status

paid each
holding them

was

arrears,

$2,283,536

at

against

as

in payment

of the arrears

Hagerstown and Cumberland,
Md.
to
the
West Virginia
coal

via

with

from
Cumberland connecting with the
Pittsburgh & West Virginia Ry.
at Connellsville, Pa. and the latter
connection is said to provide the
but

fields,

direct

most

branch

a

route

Pitts¬

from

At any rate,
the Western Maryland has held
its proportion of revenues against
the parent B & O which roughly
burgh to Baltimore.

line I between

its

parallels

Cum¬
either

berland and Baltimore, and

does not wish to

can

not

standing,
suance

giving effect to

is¬

the

With

almost

rights which expired last Dec.
7. The previous high mark was in
1953 when $7,647,025 was report¬
The comparatively light drop

ed.
to

$7,225,463

in

1954 when other

eastern roads were

severely
the large tax
credit
taken
by
the
Western
Maryland in the final month of
more

hit is explained by

1954 due
of

the

largely to the retirement

balance

motives

of

78

steam

loco¬

in

July of that year to¬
gether with servicing facilities for

steam

operations which

were

en¬

tirely supplanted by dieselization

iron

from

The above-mentioned additional

issue of
the

common

scheme

stock

was

part of
financing
the

for

liquidation in cash of the remain¬

ing

of

arrears

the

on

7%

$108.50

first

share

per

preferred

which

effected last Dec. 28 with the

was

help of

two-year bank loan

a

thorized

at

$6

million,

$4.5 million of which
and

but

was

au¬

only

the

from

trans¬

and

ore

concentrates

with

level

the

steel

of

industry operations in the Pittsburgn area.
However, the basi¬
cally cyclical character has been
considerably modified by the re¬
sumption of large-scale coal ex¬
ports
under
the
government's
economic assistance program. An¬

help

of

the

road's

liquid

assets.

factor, not adding to the
road's earnings but tending in the
direction
of
maintaining
their
status quo, was the decision of the
ICC last Dec. 9 reaffirming the
$2.40 per aiem rate for car hire.

the past several years.
Western
Maryland is

over

operation,

previously, and it
the

lowest

well

as

is

factor

because

favor

of

"free" cash at the

the

the

of

time.

same

inal

6%

million
for

coal, in the

ticularly.

six shares

offering

for each

held, and 99V2% of this

was

subscribed

for.

The

of

round

most

part

i

ferred,
or

or

pre¬

13%., and 159,050 shares

just under 30% of the common,

subscribed

accordingly




to

55,696

in

latter

the

road,

elements

classed

this

and
in

appraisal

the

of

trend has

barely kept

the

Central

has,

that

of

apace

in

able.

The

of

penses

has

somewhat
road's

been

good

made

excellent

together

less

with

earnings

an

actual

common

has

as

not 1

was

for the shortest

ever

corporations still staying

on

>

]

to be -l

seem

]

■

' •;

Refunding Highly Successful

The

Treasury refunding, according to reports, was a most ]
successful operation because the amount of the
attrition, meaning
the size of the cash
payout, was very small.
The cash attrition
of $150,000,000 was less than
2%, the lowest it has been in years. ;

road's

was rather evident from
the start that the first major
under-];
taking of the Treasury for 1956 would be well received, because h
the Central Banks were the largest owners of the
maturing l%s

in

has

become

associated

formerly

was

with

Walter

&

Co.

officer
thereto

Prior

ditions

and

tensen.

Bosworth, Sullivan &
Peters, Writer & ChrisInc. and for many years

FRANCISCO, Calif.
S.

Bode is

with

now

a

F.

Swift

&

—

Mu¬

490

•

year.
was

;

Favorable Money Market
The money market was

operation
been

as

funding,
cash

previ¬
ously with Hooker & Fay and J.

obligations

issues

which

in

far

as

prior

to

had

been

raised

the

though there have 'V
the the monetary
1955

year-end

and

the

re¬

need

for

many owners of the maturing
the taking of cash instead of the
important to some holders of the

among

fact,

was

policy

so

due last December, that the
maturity date of the refunding issues meant
practically nothing to them. This, however, was not the case with
the recent operation of the
Treasury.
rate

coupon

'

of

much pressure for this

as

Just

rate

important

matter

a

exchangeable

Barth & Co.

changes

discount

very

As

not under

last December, even

case

concerned.

are

the

was

issues.

California
was

the

was

noticeable

no

authorities

Now With Rex Merrick

and

vice-versa.

with Henry

now

Co.,

l%s

the> l%s and put this money into Treas¬
bills. On the other hand, there are reports that other cor¬
porations have been making adjustments in their holdings of the
new obligations, with some
going from the 2%s into the 27/ss and

Calif.—Jo¬

Andrews

Mr.

owners

ury

(Special to The Financial Chronicle)'

Street.

to

few corporations sold

a

Henry F. Swift Adds

seph Andrews is

the

more

Fund
Associates
Incorpo¬
rated, 506 Montgomery Street.

FRANCISCO,

of

This

tual

SAN

to

were

attested

was

reported that considerable activity was generated
through the trading of the maturing issues before the books were '
closed, because certain owners of the maturing issues, the l%s "
in particular, did their own
refunding. It was indicated that not

(Special to The Financial Chronicle)

SAN

appeal

lV2s.

It

With Mutual Fund Assoc.

Morris

had

by the fact that "rights values"

than

with Calvin Bullock.

was

of

prominent in the Government market for the first time in

he

with

was

Co.

and

attraction

of

an

This meant that the Federal Reserve Banks would turn '

holdings

the maturing obligations for the shortest
refunding, namely the 2%s due Feb. 15, 1956. '
This was just what did take place.
Secondly, the coupon rates
and maturities of the securities offered in
exchange for those
coming due, were in iine with the prevailing money market con¬

Dempsey-Tegeler & Co., Midland
Savings Bank Building. Mr. Den¬
ison

iy2s.
their

issue offered in the

DENVER, Colo.—Frank J. Den¬
ison

coming

were

or

]ti,

,

(Special to The Financial Chronicle)

Bird

Less Credit Restraint Evident

MATEO, Calif.—Robert C.

is

with

now

The

Merrick &

Rex

Co., 22 Second Avenue. He was
formerly with La Montagne & Co.

better

of

To

be

reports

of

E.

Smith

with
719

E.

has
F.

Calif. —Charles

become

Hutton

connected

&

Company,

North

Main

Street.

previously

with

Dean

He

was

Witter

&

was

been

up

expected, however, that alterations in the
that be, will be too perceptible at the start.

to now,

Federal

there

Reserve

is

evidence

no

System

that

now

in the

and

then

in

force

has

apparently

Future

changed slightly to
developments in the economic

?

.

weekly

than

more

rather

through the

of

picture

-

just
will

one

market

money

any

important

Non-Refunding Activities
The

longer end of the Government market continues to mainfair amount of
activity, with a considerable number of
switches still being made
among these bonds. Pension funds have
not been as prominent
recently in these issues as was the case
a
short time ago, because it is indicated
they have been giving

Street.

tain

previously with

the Denver National Bank.

With Greenberg,

in

purchase of Treasury bills by the Central Banks. Just the
same,
it seems as though the
feeling in the money markets at the
present time is that the policy of "Active restraint" which has

DENVER,
Colo. — Ross
B.
Grenard, Jr. is now with Robert
Mr. Grenard

in evidence

changes.

(Special to The Financial Chronicle)

17th

was

beyond any question dictate as to whether or not
policies of the powers that be will be undergoing

Robt. Connell Adds

818

powers

the

"restraint."

Connell, Inc.,

atmosphere which

temporary relief is to be looked for

Co.

J.

It is not

sure,

(Special to The Financial Chronicle)

ANA,

or

refunding of the Treasury has caused a certain amount
discussion about what is taking place as far as
monetary policy

is concerned.

SANTA

climate

the recent

policies of the

With E. F; Hutton & Co.

Strong

more

^

a

attention

to

corporate obligations.

(Special to The Financial Chronicle)

DENVER, Colo.—Wilson B. Lee

Joins A. M. Kidder

now with Greenberg,
Strong &
Co., First National Bank Building.

Mr.

Joins Botzum Staff

(Special to The Financial Chronicle)

is

(Special to The Financial Chronicle)

Lee was formerly with E. I.
Shelley & Co. and J. W. Hicks &

Faulkner is

Co., Inc.

&

DENVER, Colo.—Richard Dan¬
iels is

now

ment

Service

connected with Invest¬

Co.,
Bank Building.

Two With

ex¬

but not relative gain in revenues.

Western Maryland

I

BRADENTON,
now

Fla.—Robert

E.

with A. M. Kidder

Co., 436 12th Street, West.

LOS

DENVER,
Bennett

and

First National

&

Co.,

1

Lincoln

now

with

A.

Bot-

(Special to The Financial Chronicle)

Road

CHICAGO, 111.—Jimmy H. Heimann

is

now

with

Reynolds

&

Co., 39 South La Salle Street.

Building.

With Security

Shelley Roberts
Colo.

C.

Reynolds Adds to Staff

—

William

Willis
J.

M.

Senecal

With California Inv.
(Special to The Financial Chronicle)

LONG

Planning

(Special to The Financial Chronic
.

.,

^

Calif:—Paul R.

now with
Shelley, Roberts & Wood has joined the staff of Cali¬
Co., First National Bank Building. fornia Investors, 40 Atlantic Blvd.

are

is

Co., 210 West Seventh Street.

zum

MIAMI BEACH, Fla.—Winifred
Shank
has
joined the staff of
Bache

ANGELES, Calif.—Arthur

Hoffman

(Special to The Financial Chronicle)

favor¬

of

sizable

many

Now With Bache Co-

mostly by

control

as

1

December, >
no change,

though the pressure
in this refunding.

The most distant issues do not

Joins Inv. Service

of

the

they have been in the recent past.

as

(Special to The Financial Chronicle)

most

with

case

even

market

obligations, with

liquid side.

active

the

was

market pattern has shown

effect,

money

be¬

10 years, and the traffic
trend, measured by ton-miles has
even

than

money

dis¬

run

past

been

as

and

with

Eastern

I

a

one

revenue

of course,
Class

as

is

relatively
the road's

stock. The road's

common

the

be

not

can

"growth"

The

the

on

the very

Dempsey-Tegeler Go.

of

part

better fashion

Government

the

ramcwise, the Western Mary¬

land

dint

second

annual

granted

the

the

•

It

which ended for the

in

in

element

going through the usual operais in the process of

issued in exchange for the matur¬

were

The demand continues to be

Frank Denison Joins

last year.

8,000

the

estimated

the

increases

latest

record

of

allowing
apply to

that

of this road par¬

case

is

reterred

total

Baltimore & Ohio, owning 167,127
or
94.2% of the first preferred,

shares

after

The increased wage bill

hind

share at $41

wage

annually

of all three classes at the rate
new

in

from

"hold-downs"

and

one

deferral

is

when the Treasury

what has been in

great

so

earnings.

increase in freight rates,
placed at about $2V4

of

common

road

margin

much

a

from

and would also compen¬
for
the
rather
large tax-

sate

market

place

15, 1958, which

1955, operation.

revenues

The

roads.

the

in

would be only about a
"pay-out," and this would
give a great deal of recognition to
me cyclical character of the road's

is

trict

additional
offered

were

of

increased

that

128,597

shares

of
ratios

take

ing l%s and iy2s. It is evident that the optional offer of the
Treasury was very well received, with the owners of the matur¬
ing issues being inclined to go along with the new obligations

common

one

charging
bill of
some $11/4 million
annually at the
present traffic level against the
estimated revenue gain from the
recently granted general or nom¬
off

to stockhold¬

The

ers

$6,991,-

enjoys

eastern

the

on

which

due June

on

rate

Government

40%

particularly favorable

a

If,

Governments

on

refunding maturing obligations. This means that the market is
adjusting its position in order to give full consideration to the
new
offerings, namely the 2%s of Feb. 15, 1957, and the 27/sS

This

for.

of the lowest wage

among

latter

modest

000

diesel-

transportation

one

as

ratios

of

last Nov. 30 in addition to

fully

an

ized since July 1954 as mentioned

temporary cash investments

of

dividend

SAN

The

efficient

The latter consisted of
$10,583,000
as

of the

would not be unreasonable to look

other

needed

used, and with the additional

one

tions

(Special to The Financial Chronicle)

including imported ore coming
through the Port Covington docks
at Baltimore, and roughly another
10% coming from the movement
of other steel process ingredients
and steel products, the fortunes of
the Western Maryland are closely
identified

Reporter

By JOHN T. CHIPPENDALE, JR.
The

common

of the loan.

cause

portation of soft coal, 7% or more

which

that time.

at

the road's

of its freight

40%

derived

revenue

of 128,597 additional shares

on

Our

how

level of the

restrictions in the loan agreement
that no dividends may be paid on

diversion of traffic.

or

but arrears began
to be
"picked up" in 1951 and
subsequently until finally cleared
up last Dec. 28.
Until this was
done there was nothing in sight
The Western Maryland, in com¬
for the junior stockholders.
mon with other coal carriers, is a
The
net
income
reported
by
Western Maryland for 1955 was a renter on balance, and its car hire
account customarily shows a large
new record
high at $8,225,000 or
This has ranged
$10.19 per share on the 661,465 credit balance.
shares of common stock now^ut- between $2 million and $3 million
quo,

and

soon

If the present

pos¬

during the life
the other hand,
the loan is to run to maturity,
it
was
to
receive
as
holder of
there is the question of what rate
the 7% first preferred. Thus the
of payment might be justified by
Baltimore
&
Ohio
now
owns
the level of earnings at that time.
217,747 shares of Western Mary¬
Some well-informed guessing is
land common.
that if earnings can be maintained
The 847-mile Western Maryland
close to the present level, a $4
extends westward from Baltimore
ceived

The Western

a

stock

approximate $18 million it re¬

tne

any

ferred, which was done last Dec.

two-fold

a

only barrier, it being

of

in

support

to

dividend

lion bank loan might be paid off
in a year or so. This is now the

the, additional

cost

—

its

road's earnings can be maintained,
it is conceivable that the $4.5 mil¬

Maryland
of

how

much.

D. McKEEVER

shares

on

Thursday, March 15, 1956

WEST

PALM ..BEACH,

Aarorf Barzilay is
with
vey

now

Fla.

-•

connected

Security Planning, Inc., Har¬

Building.

Volume 183

Number 5516

.

The Commercial and Financial Chronicle

..

(1341)

Continued from page 20

by tbe commercial savings unit of savings bank with
earnings

mm

m

1

rAWtmiirflial

Xllln

9

fl

a

to

surplus

due *°

Hi

N#ll71TlffC KjHtlfC*

doubt

no

—

of

*«

1

Ml

Iff!

1

...

able

the

to

u

commercial

savmgs

•

,_

^Typical

First, let
detail how

In

describe in

these

some

statements

were

prepared.
'

...

.

,,

,

.

^Basically, what I have attempted
to da is to

create

a

commercial bank and
two

entities

de-

commercial

a

sav-

ings unit—and compare the latter
with

an

having equal deposits. To
plish

this,

I

commercial
;

bank

$25-million
this

size

the

in

$10-

a

to

because within it

found the highest ratio of time

are

deposits.

In

order

bankTto this

commercial

?*Pena*|t
m&s unu,

bank, into

average
between

its

depart-

two

time

the ratio

deposits

(ex-

eluding government deposits) and
the

FDIC-reports to segre-

gate

the

true

for

the

savings

deposits—

of this study,
I included all time deposits except
so

purpose

those made by governmental units.

uledThTIame 'exme same ex

1

usea

Danxs

except

the

studying

t0 tne

income

was to

or

the
eiiective rate paid Dy tne average
aveidge

commercial
gr?up-

bank
..

.

the

in

.

size

,

T

.

therefore, I have at-

+

mu-

ment.

somewhat

savings

results

of

shown

on

and

of

the

out

with mortgages.

The

segregation a™
Exhibit A, in columns
third

the

this exhibit, I have

column

of

constructed

a

balance sheet of

a

ings

deposits compar-

bank

able

to

unit.

with

the

commercial

this

For

New York

sav-

savings
I

purpose,

have

points

is

bank sented by the 'difference

amount

same

to surplus or capital

ratios

for

liability

and

average-asset
all

savings banks
New York in this size group. '

in

ot

ing

first

will

the

that

note

a

tax

deduction

establishment of

Almost

"

■

have^been more"than

other hand, I

in

earn-

basis

effect

of

the

tax.

The

tax

resent

23

basis

points

the

in

case

basis points occasioned by the tax
which the savings
bank would
have
to
pay
in order
to add

.

,

V

.

$24,000 to surplus.

The

unil (10% in
rines unit is.

toe

commercial

7.1%

ings bank) * and second

of

amount

menl^in

the

in

the great-

mortgage

tovest-

the savings bank

satisfied that
hank

pruden?

a

sav-

I

am

commer-

management would

unit

re-

sub-

the

in

Here

<?ame

savings

we

that

see

wav

bank
the

the

ac

ls

taxed.

diffprenre

in the interest rate paid depositors
ls 73 basis points
noint<?

greater

some.l5 basis

or

than

if

mercial savings unit
?l
the

same

wav

the

pom-

taxed

were
the

as

mutual

savings bank .Twenty-six of these
73

hasis

noints

accounted

are

to stockholders

consequences

dend.

for

You

and 24 bv the tax

of paying the diviwill observe that I

reduced the income of the saving*

fore

+ul

commer-

In Exhibit C, I have compared cial savings unit would have

savings

to

its

eSl*resTof

its

surplus,

assets

there-

and

.

T

E

,

.

have

T

Tf COl?par.^

•

commercial savings unit with

accnmntVnn S?ht)ank uP°n the
v*a
commercial

pay
no
tax, because of its low
surplus ratio, as a result of making a similar addition to surplus.
Perhaps the best way to study'

it

10

o&
w

a<Jtua ly,

sPrp

T\
savings bank
"J ^ave als® increased

C{

PIus ratio of 7-43% with the actual

P®"SIes*°hb S^oMrattas ex*'afe
unit A1tboutoh the operating ex
which, for
Pe"aes ?.£ a commercial bank are^urplrfs'

and then assuming that they both

!?utHal s avlnga bank have surplus
its

size

has

group,

ratio of 13.39%.

a

We first

■that*Sl^t

which is
mutual

ratios

the actual

of

extent

13.39%,

case

with the

of

greater

savings bank.

w

19

^35^00^bv thl

earninv

vttnt

nf

Dowpr

♦

toe

?

♦

*

"®'ebeI>i

qS

be eZmlrda sabnlfs™unif
savings unit

The comparison of the two with

a savings bank, and although l reel

whiCh shows the result of the tax

s^rc cbme®ialPsavinBS
„in Zv
"g conducted in many

treatment which these two actu- 7.43% is shown in Exhibit D. A th°u d^Pay
42 basil°points bealIy, recelve u"dec existing Fed- comparison is made showing the
£ \hot {axef arish
era£ lncome tax laws.
from
We find effect of the tax laws as
they
^ "le taxes aris:ing trom
that ift th5 tw0 -added» the sa.me actua"y exist, then what the ef- f ythjf comparis^that toe"
dTvl
am0UIlt.of earnings to surplus, feet of the tax laws would be if dend thatThe
the
commercial

utot

instances

instances

cLT7hrberabe laVtogs

bnensel

have

be-

tlloclted

bank
to

mv

cxpense.l have allocated to my

the

assumed

surplus

ratio

of

^

g

bank

savlngs

couid

pay

an

the commercial

bank

Sei? ? of average banks disci ses

.

u

,

.

,

,

(1) Tbe, m,ut"al sav!ngS baf1

an

1.47%

effective

jn, order

rate

to

of

only

maintain

the

dividfehd to

its stockholders. Thus,
dif£erential in the effective

the
interest rate paid depositors is 90
basis
oints.
You will observe that 43

basis

^

i

t

were

commercialbank

taxed
is

taxed.
hibit

effective

the

interest rate

to the fact

and

th°Sfhf°rsavlnSs bank is also
the savi"gsba"k be"
the

cause

that

to

the

high

a

low

a

difference

in

a"ses

of

of 58

favors

£erencc between the

the

terest rates that

cases

can

effective inbe paid de-

£ac that one institution
tual and the other is

points

points

af-

P°S.lt.°urS. 13 due entirely to

ranges

basis

shows

The

the

is

a mu¬

a

stock

corPOration the latter having to
PaY.dividends to stockholders and
having to pay a substantial inabout the fact that dome tax as a consequence. Morelaw does favor the over> tbe savmgs bank, as stated

of

the

111
basis

could

three

difference

effect,

in

and

fecUthe two banks if'they had
surpluses of 13.39%. The exhibit
?hows quite clearly that the dif-

the

that

toS correspond

increlsfhi its assets
increase In its earnings
"crease m its earnings.

existing tax laws would

ex-

in

f li 8

,

This exhibit,

*

the

difference

be

the

the

presently

will observe from

that

from

as

v/"*

You

earns more

points is due directly
that the savings bank

33

bank

paid
depositors
savings bank in all

has 3 substantially greater capital than the commercial savings unit,
?ccount than the commercial sav- You will observe also that the tax
ln§® unit. As a result, my average consequences to the commercial
vrf™ S hT
savinSs unit o£ settin® aside «24'"
113'39% .°f habllltles' wblle ™y 000 to surplus are the same

IZTZm TposUs "hUs a^ets
q
}hnt\

savings

u

would be increased
ith th

An

pay

sa^Ms

S

taxed

were

byft miv^thdsT^^es8 which cffect!ye ra'e„®£„inter,,est to ,j,ts in the same way as the savings
a" Dbd bv sav1ngs bank
deP°sltor? ,of 2'37%. whereas the bank is now taxed; and, finally,
examination of thlaei state- commercial savings unit cou d what the result would be if the
An examination ot these state

prin-

savings

pom-

the commercial savings unit

taxed

repre-; fn

43

namely,

—

com-

consequences of paying a dividend to stockholders would rep-

for the

age bad debt reserve.

savings

fthp

Only five basis points of by the difference in earning'
difference is accounted for by power) 23 by the dividend paid

"°. tajT the
the the

moving-aver-

a

the

thpv

as

if

sue-

ss

the relatively higher amount

of cashin thecomtnercial

rial

power

that

savings unit would be en-

to

having

were

••mercial

I ^ve disregarded the fact of the commercial savings unit tank'In
that u"de>' existing laws the com- but this would be offset by 18 reducing
merCial
titled

ha'nnen

banks

ac- points

and of capital accounts to crea ,e a the commercial savings unit with
commercial savings unit with the mutuai savings bank on the
rougbIy the saJ^e investments as basis of their surpius ratios as
a savings bank with equal de- they actuany exist in the average

tha£ lnihe contest for thrift decioal
dTfferences between the P°slt/' the competitive advantage
asset strurtttfe of a commercial ash. to;'-interest
paid depositors
savings unit Icolumn 2) and a whlch the mutual savings bank
savings bank
(column
3)
arel e"?oys IS the result P"nciPaHy
You

in
taxnd

pays mutual

income

rfcore to depositors than the

savings

-and, ^he^mutual. savings
would add the

hanks

a

used

er

in

fif exhibits' ,r have assumed mercial this 'difference
the commercial
savings unit can.
unit all of

that

cessful

sav-'irig

surplus

TibUS as?"mPtions- 1 taxf can the commercial, savings
as still
unit,
pay 48 basis

v°

savings

this

In

2

and filled

bank

unit's assets

than

high

as

proposed to discuss with you now
Exhibits C, D, and E. In the case

teiJPted b.y segregation of assets

depart-

cash

more

remainder

the

1

commercial

its

re'fte ratio of 13.39%; much
although it
three times

^

I provided the savings unit

with
the

the

to

with

profits of the

all

r^vCu^'a^af. 5S
loans

bank

ings

« ^ srsjr.
ments!S /Allotted

as

commercial

in

u.Pon £ha com" will observe that the mutual

savings unit and the

;

.StedrtM fc-the®

com-

way

the

banks) are rather than
favor of the small surplus sav- <
going
about
the
matter
in
the
ihgs bank. Even in this case, you
?wav ram recommending
of hav-

the

exwnses^ere altotted
net,inc0(m„en Jould
cLme?cfaTLnartment In- .bn ta*ed at toe rate rate30% and
of
commercial department, in
the remainder at the
of 52%.

^ the

same

it is alleged that it "discriminates"

average exempt that Sey ho'd
average C°UntS'. securities, and

toe

surplus

mercial bank in the

sur-

.

in

favor of the small

in

of the effect of Federal

Pa'*^1Sectors an^ex- earnings

its total deposits. It is not possible

from

computing

to

itself accounts for 23 basis points.
remaining 26 basis points is

The

might

o£ ?ral tax Iaw a it "discriminated"

,

groSpIjf1 net
Sa.VingS bank
the

in

^ £oJ Comnuterat
which 1 computed at

■

ments, I first estimated

name,

s as
xorK savings
ees

this

split

to

pr0blem

step

income. taxation
mercial

toe'

I "selected

category.

group

for

earnings

—

next

savings. oanKs in mis 'size sr°np
size

the

liabilities of

My

^itC m^TSSd'the^mT

accom-

computed

first

average assets and

computing the

tba

dividend to stockholders

adding substantially

plus.

rate ot
hipix &), i usea tne same rate ox

bank

savings

average

and

.

hypothetical
split.it into

commercial

—a

partment and

resultlng
paying a

.jjrth comparable deposits has a
surplus ot i6.av/o.

Situations

me

..

a surplus ratio
Comparison
is

with the actual
average accounted for by the higher earnsavings bank with a surplus of ing power of the
savings bank.
13.39%. This comparison, in short,
Finally, in Exhibit D, let us
will show the effect of the Fed- r0nsider
what

...

The larger income tax paid
the commercial savings unit,

by

1"

1%

7.43%.

relatively low surplus made

ratio.

wIFMHililjJ -If 11111%»■(5)

Eaual Tax and Biancn rOllCV
AiljIAlki m

only

53

111

basis

points

example where the
existing tax law is applied. There

is no

the

question

existing

SrUlsgreati^mo^nfo 'atet's ^

0nt thea earni"gs twhiacb aavings ba"k' because the savings a
has a higher
sTmP toturefus' Thus'toe0 tfxtotaflv exemnl
earnings ^ion ^of^ these earnings
accounts Irem tJ whereas the ImZ
Retaliatory Competition
f?rstPp"ace? th^tufnover of coml ^^2^ Th^higheryfeld olThivestf°r n° fhartt °f -hf di££erence ba" savings unit with such a surplus f
mercial bank time deposits is apenioyed bv mutuab savtogs
l?e two interest rates The ratio would not be exempt. How- £r0'n t°hVeseal^h?b1tst1sb toa^ the
thf d bexblbl's01 3 tbat £b®
proximately twice that of a sav- baenka be3c y d
byf ^ur abili^v to accounts Paid £o
Fnrthrrmorp
h
PanK^ because oi our aointy 10 dlvldend for 23 basis stockholders ever, 49 of the 111 basis points of c'3"1"lelr"al ba'"ks vould not gain

stantially
is

more

needed

working cash than
operation of an

the

in

is translated into higher

men

inac

hpnk

mere

existence

mercial

t

of

department

Hpnartmpnt

roof

heavy
of

any

and

under

each

exposes

a'

both

to

.

com-

thrift

a

the

same

the risk of

withdrawals in the event
loss of public confidence

either department. This exposure is greater than in a separately
in

operated

savings bank. Finally,
the required deposits at the Federal Reserve Bank of on of time
erai rteserve canx oi 5% or ume

deposits
ticable

The

not

are

a

proper or prac-

of

source

disparity

working

.quirement
and

of

the

in-

by two

savings

savings

average

capital

of

average

iq

brief

set forth

in

You will note that the

commercial

eroun
group

A

liabilities, including

accounts,

Exhibit A.

bank.

has
nas

bank in this

capital
cap la

accounts
cc u is

equal to 7.43% of total liabilities,
while

the

average

savings




bank

points, and difference is accounted for by the

XfgltZr plruLlarly'^ml™ the
gageg
u'

Sgs

certain
certain

a

3

exteto

extern,

in

in

have°eSalized This
factor by'allocating to it slbstanjiaHy the saml fnTestments
7^ samf
HoZPr hf
cLlpthp^
imlf
dnit

I

as

wnil]fi

hp maHp

hv

h„nl_

_

ize

Thl

for

the

relslns

I

have

pre-

I TZZt
a greater

Tbus- !£ is dlear that there is

no

tax discrimination

in

favor of

the savinSs bank witb a surplus
of 13.39% or, indeed, with a surPlus o£ 12% OT more" The di££er" Payment
between toe rates of interest

o£ dividends to

thermorVTn^the

mnr#*

mutua,

a

-

long

or more

mortgage investments, whereas

the

commercial savings unit,
member bank, would be

if a
stopped

out at 60%.

stock"

(3) The fact that

able
aDie

form

(4)

return
return

to

its

a

commercial

pay

us

assume

a

owners

reasonin
in

the
tne

of dividends.

The much greater addition

v

.....

that

the

th/>

The

stockholders.

second

part

unit

were
treatment as

on.Tinrtc

ings

of

Exhibit

C

would

unit's
now

sbows what would happen if the

ever, nine

9ommer1cial.saviPgsr7
surpius 1S

accounted

onjy 7.43%

less than

wise

in

12%),
the

were

same

/HtCa+U^G dlfferedCd

(that is,
treated tax-

manner

as

a

vor;ab|e trejitment as the
lwr

movinc

Moreover, there

commer-

b*l^bt*e*™eZ
would be strong

pressure

savings

rnnniuoc

receives.

a divide.nd to its stockholders, terest paid depositors is JLe, !S"
now reTkat brin^s abpu^ certain tax duced to 58 basis points: This reconsequences which the mutual duction is fainly accounted for by
savings baiJ^ escapes because it the fact that the commercial sav-

ba*

savings bank must

let

ablllty o£ the savlnSs bank to earn given the same tax
nnH
fnnt
ontuoiiu
"run "my more and b^ thp fact thnf thp the savings hnnir actually
the
that the
bank

65%

jn

Now

,

o

commercial

than

ence

said

e

■

isu a.c.cou(ntad £<"-. entirely by the

cash

success-

dilated by whit I have
hT
£sf aCh^nI|dbf°1sby0MS 18 basis clnse the Savtogs banks would
of these 62 basis points, ll^fs
™
p()ints are accounted for b^ the
vorlhWr^^
income tax resulting from the

savings bank, this inequality cannot be compieteiy removed! Fur-

of

tbey were

fanKs aie taxed under existing
aw. The gam would be even

o!"u l-° sto.ckholde''s account for unit pays its stockholders. Only
24 baS1S P°mtS'
'
62 basis pointts °u£ 'lu dl££erende

holders.

amount

a gr.eal; de.al

tax consequences to the com- better earning power of the savthe gamf wYv^l rammercfal
m!r"al sav!ngs ?nit o£ b^avIni to ings bank and by the dlvldend Ln ke aa™taxed nnde?
retain earnings to pay this divi- which
the
commercial
savings

ence oeiween me xaies or uueiesi
which can be paid1 to depositors

viously stated, require

bank; ayfage savings bank would probably reach a level of

(2) the higher surplus of the

statement

size
size

cash,

mortgage

in

vestments is accounted for

s

p

sequences

to

addition

to

surplus
be tax-exempt. How-

basis points of the tota
for

by

ba^ls tax conP°lnts 1S
the

of paying the dividend

stockholders, and the dividend

the savhigs banks to
reduce the tax burden
by increasj - th
.
,pr„,
g
interest rate to depositors.

"IL I

Thu^thp^ramtwLlhSS
even'find
in£?_

the competitton for

;3P'ci^

arrnilntc

success

woujd

0f

Jv-

hv

thP

their tax efforts. They

undoubtedly

run

into very

strong agitation from the savings
bankg to obtain certain
banking
privileges which are now very

iargejy monopolized by the cornmercial banks. One of these priviippp(,

and

'

a

vprv

imnorfant

.

Continued

on page

one

:

54

The Commercial and Financial Chronicle

(1342)

Continued from page

this

passage

of

branch

53

bill

rather

Commercial and Savings Banks:

my

or

time.'

the

question of whether

ising

resistance

,

banks

Eqnal Tax and Branch Policy

to

privileges
justified.

indeed, is that most savings banks
are
limited as to the amount of

tive finding that

posits

general

savings

branch

banks

banks

limited, and as
get liic bulk
gti the wu

not so

are

thev
iney

rnnspouence
consequence

a
a

cujimicxw^
As we all

of the big time money.
thpv
they

know

know,

the

interest

of

hanks
oanxs

cavinac
savings

the

same

hanks
oanxs,

thev
tney

which
wmcn

are

additional

or

rn

branch."

branch

restricted
xc&uieueu

_icr.

^

f
clearly
,

branch

could not d.
city or town of less

opened

in

a

account

the

for

bank to

savings

of interest

to

by

h*k

of another

nee

of

New

York,

will

you

;

tax

any means

ability

depositors than the

This

mereial

_of the

higher rate

pay a

small

icj

approach for the

banks to take is

mereial
of

throwing

of

the

that

not

thrift movement

by

would

1H

1ik.

iCial

state

commercial

in

banks and

bmt

the
in

banks

t.rnir

business

of indicating a field in which

compensating concessions by
mercial

bank„

to

savinj?<;

this

occasion

hank<5

-n

the

urge

the

rate

the

same

banks

way

EXHIBIT

of

course

which

action

I

1

far

—as

interest rates

as

are

cerned—between
and

commercial

however,

mutual

banks.

the

narrow

maximum extent

savings

It would,

to the

gap

possible, in view

between these two

ences

institution.

It

would

the

increases in their dividends
terest

rates

both.

or

alternative which I
which

I

regard

proach

to

taxing

mutual

the

this

same

as

in¬

or

The

manner

banks

*579

;_

4,888

2,627

commercial

the commercial banks should

aim of creating a truly fair field
of competition. I will advert to
only one area in which I believe
concessions

in order.

are

states, there is

3,139

Dividend

—.

branch

savings

commercial

for

to

the

banks.

number

also

are

banks

9,885

In New

of

the
county
in
which
principal office is located.
tell you

riod

has

,

our

our

history.

many of our

and

need

This

many

pe¬

greatest

services

years

can

we

by

have

permitting

no

us.

sought

us

addi¬

tional

branches outside the cities
and counties in which we
present¬

ly conduct

ample,

our

business.

For

York

savings

bank's

of

the

banks

city

principal

in

This

establish

within

would

which

the

banking dis¬

not

be

an

un¬

restricted privilege. The
applica¬
tion of the bank for such
branch

322

175
101

I
j

Dividends
Income

(3)

(4)
Sav'gs Bank
13.39%

Surplus

Cap. Accts.

Surplus

$165,000
39,000

$142,000
17,000

$165,000v
39,000-

15,000

5,000

15.000"

12,000

none

12,000

none

24,000

24,000

24,000

24,000

78,000
1.47%

126,000

101,000

2.37%

1.89%

J

0.43%
stockholders

to

of

0.23
—0.18

dividend

to

stockholders 0.24

0.09

13.39%

Banks with equal

(Amounts in thousands

If commercial bank

on

U. S. Govt.

Interest &

dividends

Interest &

discount

obligationsother

on

on

securs.

loans

Service charges
jand fees on loans—
Service charges on bank accountsOther service charges,

Mtge. Loans

Sav'gs Bank
same

size

as

Sav'gs Dept.

240
340

189

214

65

53

53

14

15

15

186

115

143

A

available

Federal

To

(6)

Savings

Savings

Bank

Unit

Bank

Unit

Bank

$156,000

$142,000

$156,000

$142,000

$142,000

$156,000

17,000

None

74.000

49,000

33,000

None

5,000

None

33.000

20,000

12,000

None

12,000

None

12.000

29,000

29,000

29,000

29,000

29.000

29,000

63,000

127,000

96.000

127.000

68.000

107 O00

1.27%

stockholders

surplus
depositors-

Interest rate

_

—_

:

—

2.38%

1.80%

2.38%

1.27%

2.00%

Net

:_—I 0. 26%

income

Dividend
Income

to

stockholders

tax

.

Income tax

—

_

_

_

(b)

0. 26%

C.26%

0. 23

0. 23

0.23

0. 62

0. 09

0.24

$.18

0.09

0.24

0.00

0.00

resulting from

dividend to stockholders.

Income tax resulting from
addition

to

surplus

$.44

EXHIBIT

__

10

6

~3

239

108

174

Salaries—officers

49

14

Salaries and wages—employees
Fees paid to directors, etc._
Interest on time and savings

90

8

2

62

Banks with
—as

4
i

127

Depreciation

on

Banking House, etc.

Other current operating
expenses

I.

7

5

5

73

16

16

81

40

101

81

Net

$155,000

35

28

14

1

2

2

65

51

24

*12

net income—total:

Fed. (35% of net inc. for Com'l
Dept.)

State

'

Net profits after income taxes

39.000

38,000

15,000

—

21,000

none

To

24,000
72,000

24,000

surplus

Interest to

depositors—

126,700

,

1.37%

Interest rate

2.37%

Differential in interest rate—

44

39

Due to net income.

by commercial bank before segregation

was

$33,000.

0.19%

rl

Due to dividend to stockholders

0.39

Due to income tax

0.42

(a)

——

Income tax resulting from div. to
0.42

stockholders

24

(b)
♦The dividend paid

$165,000

83,000

available

Subject to tax

40

*21

on

Savings Bank

Dividend to stockholders—_—_

101

Taxes

(2)

Commercial Unit

Federal tax
15

equal capital accounts of 13.39%

actually treated under present tax law
(1)

8

3

3

E

14

|

None

Differential in interest rate due to:

12

operating expenses—total

present law

(5)

Commerc'l

—

to

Interest to

__

commissions,

Other current operating earnings

under

(4)

Commerc'l

—.__

tax

Dividend

(a)

10

as.

None

after incr. in

39

under present law

(3)

treated

is now treated

(2).
Savings

Liabilities

Sav'gs Dept.

Current operating earnings—total

were

commercial bank

Unit

Net

Dept.

If savings bank

same

savings

bank is now treated

tax laws

dollars)

Comm'l

way as

Commerc'l

,

New York

»

treated

were

(1)

of

—0.27
D

capital accounts of 7.43%

As now treated

existing

and

2.37%-

0.43%

(b) Income tax resulting from
addition to surplus—— 0.00

B

Assets

,

126,000

0.24

under the

BANK

:

0.23

tax

average of New York savings banks
Discounts—Net Total: Commercial Dept.
3 420-

EXHIBIT

same as sav'gs
bank under present tax laws

7.43%

V

EXHIBIT

ACTUAL AVERAGE

Average Banks—if com'!'
bank treated

•

Com'l Unit

the actual

Comparative Statement

that the people

you

C

(a) Income tax resulting from

721

7.43%

community,

13.39%

——

group.
$Loans and
Savings Department, 2,505; New York
Savings Bank, 3,028.

Interest

I submit to

savings

one

entire

28,000

—

124

7.43%

would have to be approved
by the

Banking Board and by the Super-




400

186

Accounts

size

only

now

that

in

64,000

Capital

V»!!% °f assets- *7.1% of assets,
this

is

bank

Differential in interest rate due to:

721

Undivided profits and reserves..
a ratio to Total
Liabilities

in

formerly employed

(2)
Sav'gs Bank

Interest to deoositors.

5,386

741

15

office is) located

and within the same

trict.

to

branch

5,386

233

a

additional

miles

9,965

___

•

There

depositor

stockholders

to

To surplus

45

Capital stocks, notes & debentures
Surplus
As

were

conduct their banking in Nassau,

a

are

Subject to tax_

5,341

45

ex¬

bill, now pending in our
legislature, would authorize New
one

5,341

80

Total liabilities (excl.
capital accts.)
Capital accounts—total

urrent

served

the

who

$142,000/

Net income

277
_____

that

means

depositors who want

our

legislation

the

cities to suburbia

longer be directly
For

their
I need

that the postwar

witnessed

exodus from

in

but

to

Net available

9,608

___________

York,

confined

or

v

5,341

;

i

branches

geographically

bank

\

97

5,341

area;

by - and work in Nassau and want to

—

Interest rate

___.

and

to

not

~75

137

__

_——

Industry and busi-

mushrooming in the

'

3,465

!____

__

some

example, mutual savings banks
not only severely restricted as

are

1

'

LIABILITIES

disparity
privileges of

between the

needs

their

Federal tax

3,139

Time

are

Cap. Accts.

2,532

marked

a

the

mutual

In

of

(1)

,) ■■■'},' 31

Demand

ness

7.43%

2,532

Total Deposits

savings banks.

'

3,465

__

to

were

and many peopIe 1'vrng m Nas-

savings account,

a

'

141

___

people

Com'l Unit

1

327

—

these

largely financed by the New York

of:

actually treated

29

_____

there

constructed

Average Banks as

142

Miscellaneous Assets

been

under present tax laws

333

Real estate loans—total

It

me

accommodate

EXHIBIT

148

sider

i

terms

bank, these funds

;—

_u—_

_—_

con¬

some
compensating conces¬
sions to the mutual savings banks
which will accomplish our basic

de-^ have

To many-

part

a

savings

a

bonds, notes and debentures
Corporate stocks
Loans and discounts—gross total t—

and

Other

the

savings function of
banks, I suggest that

in

2,046

.

for

in

future

accessible

2,545

3,900

__—

Miscellaneous Liabilities—total

ment

for

2,123

banks—would accomplish neither

Now, in return for my recom¬
mending more generous tax treat¬

of

840

result.

Compensating Concession

savings

on

t437

obligations..-.-

the

offer?

may

that to ask the question is to answer it. Let me apply
seems

Bonds

$6,107

2,281

in

commercial

as

E

to

bank

in New York City, now both live

problem—namely,
savings

United

especially
true
depositor to whom

subdivs.

Other loans

commercial

Savings Bank

Obligations of states

first

discussed, and
the negative

Dept.

$5,786

Securities—total

types of

permit

commercial banks to make modest

Dept.

$10,706

__

U. S. Government

of

savings bank and to

a

higher return than

a

(3)

Cash and cash items—total

of the basic organizational differ¬

banks,

New York

f/

Total Assets

.

sau>

less
(2)

sale

secure

these

commercial

Savings

facilities of

ways

savings

differential

whether

Commercial

"

some

is

putting them in

'

incidental

an

on

small

earnings

(t)
'v

is

accumulation

BANK

ASSETS

con¬

people with this

rate

consideration.

your

in

how

people, the dominant
motivation in opening and maintaining a savings account is the

nQw

(Amounts in thousands of dollars)

proposing would not com¬
pletely close the competitive gap

in

the

^This

rate

of

Comparative Statement of Assets and Liabilities

am

To

motivation,

money

knows

in

dollars is small indeed.

,:Vt-U, V?

A

is

obtainable

the

tense competition between mutual
savings
banks
and
commercial

ACTUAL AVERAGE

savings

taxed.

are

The

the

as

save

urging ^ New, how about the person who
commercial is interested in rate—who regards

the

by

yield

the

of

rather to have the thrift function,
of the commercial banks taxed in

to

account

this is.

true

this

tried

interest.

posits.

highest

where

areas

that

in
to

has

checking

of obtaining all needed
into which a vast number of our
banking services under one roof depositors have moved. The enorare
at least as important as themous number of new homes that

rate. If this were true, it would
already have been made evident

I am now

to

offering

who
a

venience

£2?

institution

com-

meicial banks to savings banks

using

premise

rates, all, or substantially
ajj? deposits will gravitate to the

pur-

more

a
10-year basis, this specifically to the savings
Despite the avail-: banks of New York City. We are
ability of this service, tae thrift-asking the enactment of a branch
deposits
of
commercial
banks-bill that will give each of us, subhave grown.
Tne truth of the ject to the exacting limitations
matter is that to many people the'
which I have described, the priviconvenience cf location provided
iege of one additional branch in
by many branches and the con-. Nassau
County. Here is a county

assumes that rate is master

terest

Branch Bill only for the
pose

**

P-

to'this

call

Government

which

and which, I believe, lacks validi-

however

nhwrw

referred

to

refer

3%

consequent

one

a checking acthey are much less
likely to be expended. Any one

and

the

which
paid

States

whjch,ha® nT°' 1?.een demonstrated

I

banks.

least

at

grow

fact

I

enmmer-

in

the

interest

draining-off
thp

continue

t

assumes

jnter_

miSnt oe constructive.

taxed, but

the

to

placed in

or

count

competitive than the rate of

more

0? tia;e c.eposits m^tne commer

such relie£

savings

tn

commercial

are

result

c>nositg

realize

■
some

trying to have the savings banks
taxed
in the same way as the
banks

bv

cash

years

facility

of

now served oy commercial oariKs

to be, in

me

bgnks

liw theJmutuai

com-

roadblock in front

a

whole

of

communities

served

nffprfp-l

to

seems

objection to

the'Tigures plainly'tadiSfJ thai that 1 have
the proper

savings

inaD111^ to continue m business
principle, a very modest demand, and ofler their diverse services
fairness/i think the com- to the community This argument
by it.

in

for

than they would be if retained in

de-

banks

grown

Thursday, March 15, 1956

.

fact that for his
savings as a source of income,
they themselves have ; small though it may be. Should
made available to people who are this
person not have the opportruly thrift-minded a competitive tunity conveniently to 'use the

cornadditional

aeainst

privileges

savings

also

overlook

ine^ many

by

because

that very tew areas are allotted

cun„.

that the d fference

treatment does not

banks

orieiiy

urged

City,

the

deposits of commercial

would

objection,

banks

the

briefly

examine

objection

merciai oanxs against additional

b~

'

rvu

their

Importance

examine

us

merc;ai

,

Such

not

pn„id

/-^r

classic

legislation to a map of the btate

considerably increased.

very

opening

such
hranf,u

,

be

main-

to

limits

now
now

are
are

tne

of

will

or

want
want

well
wen

very
veiy

by

tenance

on-ninj?

savings bank is
located. If you apply this proposed
*
xi
x

commercial

deposit

thev
tney

taxed
walu

be
uc

as

may
may

the

money.

to
iu

are

way

have

to

this

on

served

Location

that

have

continue
I

area.

the public con-

advantage

and

venience

mutual

attention

m^ke an affirma-

York

denied

York

thrift

banks

is

»ariKSis said mat because oi
J
*
inonn
r,nr
in
anv
ritv
or
tne savings banks'rate advantage,
If than iu,uuu nor in any city or
introduction
in
the
many
in village in which the principal of- Peif. introduction in
tne many
ju
b

rates

low
iuw'

very
vexy

nav
pay

would have to

of

New

New

as

be

rapidly than those of commercial
banks, but the fact remains that

commercial

liberal

such

cannot

in

intendent of Banks, and the latter

deposits they can take from any
nnp
riPhoritor
The
commercial
one
depositor,
inc

for

banks,
It

is

uncomprom¬

of

more

It

to submit for

purpose

consideration

your

other

any

this

at

,.

Income tax resulting
to surplus

tion

from addi¬
0.00

Volume

are

veniently

served

area.
'

'

If

the capital appeared in our issue market price. Under the proposal

shareholders will have the right
to subscribe to one share of stock
f°r every 15 shares owned by
Bank & Trust Company in Macon, them on March 6, the date of recGa.,
increased its
capital from ord. These rights will expire on
$700,000 to $875,000 by the sale of April 2. Bank of America Presi$175,000 of new stock.
dent S. Clark Beise said that is^
^
-1s
suance of the new shares will in¬

•

declaration of a stock dividend of
$140,000 made possible the in»creased capital.
^

should It is the essence of a free enter-

insisting on ground prise economy that such compete
rules which deny equal treatment tive forces should have free play
to the ether. Each of us has, and in a fair field. Only thus can the
it,

*

by

* 1

*

-

will continue to have, banking
systemas
a
whole
certain
competitive
advantages prosper and grow. Only thus can
over the other., Under foreseeable the public interest be served.

.

*

-•

,.

Plans

to merge the -Peoples
National Bank of Secaucus, N. J.

probably

with

the

Trust

i-

office

Secaucus

of

larged

*

News About Banks
CONSOLIDATIONS
BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

which

it

TT
U.

The

Currency
issuance

March

in

Upper

Garden

Stewart Conaway as Cashier.
*
*
*
An increase in the

at

remodeled

1907 and was highly re-

in

career

appraiser in New Avenue ar d ^Jinton Road will,
City. Born in Brooklyn Sept.t also be the\,npw location of, the
"C r\nt
nw/lAvt

garded

an

as

1_

Art/1

1*

_•

m«.. ni

TT!

—

_

i1

-

- t.

.

his

opened

ofdee

own

Altreuter had

1953.

in

been

♦

1

■'■■■.

*:-■

Trust

Security

The

trustee

a

the

of

Chairman

•

Real
the

Trustees
and

Committee.

Estate

of

i

%r

branch

A

in

iished

the

Appointment of J. R'chard FinAssistant Vice-President
of the Federation Bank and Trujt
on

President

Shanahan,

J.

Manufacturers
Trust

js

New York was anMarch 9 by Thomas

of

Company
nounced

the

ot

Feb

RR.

subsidiary

nine

and

Prpcidpnt nf The
President ot ihe
Co. of New Jersey

Moore,

Central

companies,

has been elected a member

of the

the

Com-

of

Directors

of

Board

Bank and Trust
Company of New York, it was announced on March 13 by D Mai-

mercial, State

Phairman

RnpvH

icfenhons

29

standing
March

Traders

d

•

charter

a

First

on

of Jan. 10 by a

stock dividend of $3,000,000.
*

*

National

<■-

n

of. it is announced, represents

*

*

$250,000

holders

for

share

*

*

of the Owensboro National Bank

*

The

*

Growers

the

0f

merger

National

*

lnS

it

the bank

is

Rank

of

qmith

X

zajljiix

at

,

t..

.

_

.

_

E. J. W. Hellmuth,

ucai.

present an Assistant

General

Manager, has been appointed a
Joint General Manager from the
same date. P. D. Willcock, General Manager of Midland Bank
Excutor & Trustee Company, Ltd.,
will retire on pension on March
31, after 48 years of service to
the bank and Executor & Trustee
Company. Mr. Mather, at present
an Assistant General Manager of
Midland Bank, Ltd., has been ap-

2* "enlnsto? to. the
pointed General Manager of Mid$L500,000, h a v 1 n g contributed land B a n k Executor & Trustee
toward the enlargement of the Company, Ltd., as of April 1.
caPltal*
*
15
*
.

,

,,

.

The

Ordinary

84th

General

The sale^of new stock to the Meeting of the Swiss Bank Coram0*UIiL?- !
J y J
poration was held in Basle on
to bSffi ^eb. 24 under the Chairmanship

Cam.

as

ie

of Feb

$400,!

from

$500 000

*ouu,uuu.

^fo^wire

approved

!»55 werq approved
(as last

counts io

and a dmdend of 8%

*
*
*
The capital of the Va,Iey Na"
pffppteri
nf FPh
fi
.mTr th! tional Bank of phoenix' Ariz" has
charter and title of the last named
^een ertlar6ed to $6,300,000 from
bank
Attheeffedtivl date ofthe $6'000'000' as a result °¥ a stock
^J.ger the CRizens & Southern dividend of $300,000, the increased
Bna

Charleston

at

l!!'!

19. offices
in BufY.,",and
17
other
branches in adjacent communities
in Western New York.
Total re-

of

*

,

*

Compaq of

operates

sources

*

to $500,000, effective Jan. 23.

p0ration, will expire on March 26.
Manufacturers and Traders Trust,
N<

UCCll

llda

capital of $250,-

with

*

CV with comraon stock of *60'" capital
First B°ston Cor- qqq lrdo
Citizens & Southern OOO to

falo

_

dividend of $1,000,000 and the sale

<•<■

of

of Owensboro, Ky., from $200,000

four

each

'

dividend

stock

TheVfering, which

held

A HIV,

—

000, and surplus of $568,530. W.
R. Rosenfelt continues as President of the bank, and P. E. Davis
as Cashier.
-

$300,000
has served to increase the capital

9?

new

•«■

.

I* unci'
a

HI

formed

to

i

.

ffOilljr

uuviug

from

*

A

rights to subscribe for
343,430 additional shares $5 par,
at $20 per Share'* at the rate of

stated

of

stock

National hdd^

from $3Q2r791,000 in 1951 to

grew

of

the

tor

from $6,000,000 as

*

*

issuance

S-

Mnnrp

t
T.

■p
E.

a

a n

of its outcapital stock of record

offering

*

*

*

of

Company of Buffalo, N. Y.

graduate
of
Yale University, \has been,one
associated -with the
bank since sh
Finnegan,

Mr.

bank.

location

*

•

negan as

the amount having been enlarged
*

The

„.

,

,

tional Bank of Los Angeles, Calif.,
now has a capital of $9,000,000,

Reporting a capital as of Jan.
31 of $12,500,000, the Mercantile
its capital on Feb. 10 as $620,000, National Bank at Dallas, Texas,
this comparing with a capital of brought the amount to that figure
$310,000 prior to the increase.
from $10,000,000 — both a stock

estab-

was

former

.

.

the

in our issue

„

„

The Farmers & Merchants Na-

of $310,000, the Midway National
Bank of St. Paul, Minn., reported

non-

the latter bank.

*

*

*

stock dividend of $150,sale of $150>000 of

a

d

„

of the

Comptroller of the Currency at Feb. 27*.
Washington. The new bank, which;
o'. E." Wood and J. Fitton, at
a con- present Assistant
Chief General
:
'.
'
e
been appointed
Managers as from

capital

"""

»J

.

raised

been

Company

insured

n.:.

member.

Mortgage Committee.

Trustees

possible

made

was

issuance

proposed

Feb. 9, page 741.

enlargement
the extent of

to

stock>

Rochesteryxijtf. Y. a state mem-' $500,000 as a result of a stock
since 1939 of the East R ver Sav-r ber. cf the
p£cterh| Reserve Sys- dividend of $250,000.
ings Bank of New York and a tem merged-$S$j^its charter and
*
*
*
Vice-President of East River since title on - FeS^B^with the
State
With an addition to its capital,
1943.
He was also a member of Bank cf
Siffcr&vijjle, at Shorts- in the nature of a stock dividend
vuie>

a*

000

0f

the Trustee Executive Committee,

the

to

The

23.

capital

through

Cit-

tne

fr

fi

out, "Bank of America has grown
one and a half times" Reference

^her departments in the of^ $150,000. Frank R. Smith is Bank at Winter Park, Fla., is anMidland Bank, Ltd. made the
CityJ^fij^. The re: er.t ya indicated as President, and R. L. nounced by the office of the following announcement as of

handle

Mr. Al-

treuter embarked on a real estate

Mr.

cnarter iur

a

Feb.

$300,000

the

of

the

izens National Bank of Beaver
Falls, at Beaver Falls, Pa., with
Monclair, N. J., Garden City—will be utilized to a capital of $200,000 and surplus

trip to Florida.

a

.

ler

Jan. 13 reported the

on
01

0

of

—

home

A

„c

as

Boyd Altreuter, died on third floor of the Lo.ig Island
14 after returning to his-Trust Company's Main Office in

Louis

York

Compt

*

Present figure of $486,000,000.
The last time the bank's stock
was increased was in May of 1950.
"Since then," Mr. Beise* pointed

000 to -r-„u oq
$600,000 became

ef-

of

rnwntrniipr

o
S.

20

crease the bank's capital funds by
more tban $55,000,000 above the

National Rank
National Bank nf
of

*

*

*
mL.

en-

as'of'Jan.

*

T

fective April 1.

CAPITALIZATIONS

from

said will become

is

has

a

$400 000

to

*

Foft Lauderdale
amlprrfaip
Fort

holders, it is indicated, will vote

-

r

NEW

at

A~

...

~
•

Bank

result of

a

as

capital

its

fr0m $200 000

City, have been approved

of both institutions,
announced, and the stock-

is

National

Fla.

stock dividend of $200 000

the

by directors
it

Fiorjda

The

Gainesville

Company of New Jersey at

Jersey

*

*

I

As of Feb. 8 the First National

of Feb. 3. The sale of new stock
to the amount of $35,000 and the

:continue- supreme,

undoubtedly

in -.truly

neither

competition,

stifle

of Jan. 26, page 539.

tal from $140,000 to $315,000 as

that for diversity and convenience of
service, the commercial bank will

of

growth

both -.believe

we

fair

so

the

to

dend and the sale of new stock,

circumstances, the mutual savings

the

by

ticns which have

55

(1343)

institu- banks will have the edge on in- the People's National Bank of
heavily con- terest rates. On the otner hand,.-Keyport, N. J. enlarged its capi-

entitled to be con-

of Nassau

tributed

The Commercial and Financial Chronicle

Number 5516

183

C

S

with

$1 875 000

canital of $1914

a

iNdiionai naa a cdpiidi oi

-r

-

year) was confirmed. Professor
Leopold Boissier of Geneva and
Dr. Curt Labhart of Schaffhouse
were elected to the Board of Directors and, Fritz Stuckelberger
0f Basle was elected a member of
capital havmg become effectlve the .Board of Auditors.
T
9o
.
Jan. 23.
Louis Thome Joins

Branch RR..Co., the
Raritan River RR. Co., etc.

York & Long

Trust
rust

Wall

70

of New York,

Company

Street,

announce
Charles
Dimon

of

election

the
as

and

$1,372,000

added^were
to* the"

compared

$2,002,000

1955—-The

in

dends
for

exceptjin 1886.

years,

a

paid since; 1951, adjusted
two-for-onO split in 1955

ranged from ,195('s 70
92 V2 cents declared in

cents
1955.

ness

,,

L

include

will

which

an

expanded

Department

Credit

Consumer

operated from the
Mr.

be

Fordham Office of the bank.

has had

Dimon

mercial

of com-

20 years

experience;

banking

he

formerly connected with the
.Commercial State Bank and prior
was

purchase of the MetropoliIndustrial B a n k, organized

to the

^tan
and

operated the Forest Hills Of-

fice

Vice-President

as

and

Man-

dend was declared
1955,

directors

and

,h

J

„

La

°L

jna

hppn

inrrpasprt

frnm

$2nn.-

S'i?g P/fnpnnnnCreaS^d from $200'
000 to $400'000 as of Jan. 20.

meetw

.

ro

been

T

nf

i

f°th^ ™
- ®

£ft

in December,
of the bank

„

Cal., as of March 1, is reported by
the^ComptroUer of the Currency.

m

Droeress

P.®

=

.

continue"

now

In

the

of

our

s
lates? ?n

Qa /y,,J}.
Jnn nnnL cWpc ? ctDnl ft
100»y00 new sha es of stock at $30
a
e'
t e ban $3 milL?n ^.new tUIJdsad
i l

;

the main office now located in

derson State Bank?of Buffalo* this

month, the bank yHll have 1,742,-

million and surplus at $20 million,

shares

of; capital

stock

*

The

Island

Company will ba located

quart rs

modern

East
n

in

Clin

and

Avenue

Garden City,
r

n—

1-

March.

Hainfe'-d,
move,

at
on

Trus!

out-

represented

by

a

million. shares

in new,

Road

in

effective early
J
^>1^
Frederick
x

ii announcing the

stated

quarters of the

1ooc.

Co., Inc., 21

Mr. Thorne was

,

i

(special to the financial chronicle)

CHICAGO, 111.—Marshall Tarre

gtock Exchanges.

Lee

*

*

*

Higginson Adds

(Special to The Financial Chronicle)

CHICAGO,
v.xix^/\ur^,

Fjejd

now

111. —nxuim
G.
xu. — Arthur
vx.
connected with Lee

Higginson Corporation, 231 South

La Salle Street. He was formerly

Approval of the board of direc- with McDougal & Condon, Inc.

m

.

.

.

n

With Hess InV. l^O.
(Special to the financial chronicle)
QUINCY, 111. — Lawrence

C.

that

the

combined institutions tors

began operating under the name
pany on

that data.

Items bearing

the merger, appeared in these

on
i

-r-,

columns

Feb. 23,

V!

^

-

Felvi jej
page 95$

page

'

former

department — the




_

_

,

12, and the

_Stawart of the County Bank & Trust Com-

President

Jr,

West 10th Street.

.

a

Deoart

L^an

Long

the

mu.-x.uui* u
become associated

with A. E. Weltner &

*

«

Installment
of

ment

CITY, Mo.—Louis D.

has

u"^eru
"f PcT^nnnn is now with Hi:ks & Price. 231
bank has a capital of $1 250^000 gouth La galle street> members
f"d surplus of $l,088,161.78 With o{ thg New york and Midwest

Oakland, the former location at
Richmond will be operated as a
branch and in addition the Central Valley National starts with
tl! n.ine ®ther branches. C. 1P. !Paitplus from undivided profits. The rid^e [s President of the bank and
bank's capital now stands at $10 R. E. Wehe, Cashier.

standing.

KANSAS

Thome

-n-

+

t

dends in stock

400

Weltner Co.

~
,
.
previously an officer of the ComThe conversion of the Central merce Trust Company

tor's proposal to issue 1,600,000
; : A*:} »
°f stock. In iess than 10 monttis. additional -shares of Bank of
of the American Trust Company
Plans for the proposed merger capital and surplus of the bank America of San Francisco, comand Jay Marc Schwamm, is Vice- of
the 'Citizens .Trust Company have increased 43% or $13 million mon stock was voted by stockPresident and
Secretary of the and the County Bank & Trust from their original level of $17 holders of the bank at a special
Compciny
^Aivinoinv
^^ ,il* *
*^
^1 —. — ^t~**^ ^^

until March 1 of this year,
David H. G. Penny, is Fresident
ager,

E.

(Special to The Financial Chronicle)

,

considering paying divion ^en annual basis.
Giving effect to the current issue,
to the 2% stock dividend paid in
January, 1956;an^ to the merger
into Manufacturers and Traders
Trust of Adam, Meldrum & An-

are

,

_at"

has

Colo.,

Boulder,

Savannah, Ga of The CiUens & Valley Bank of California, at merce f rust company.
^.a"°"a' Bai?5 ot
Richmond, Cal., into the Central
.
.
ai^a' b
^ i?n
caPltal Valley National Bank of Oakland,
Joins HlCKS & Price

to
A

types

will

which

d ^ap ^alnminppfi a

s ^

Divi-

A.
of

brought about by a stock dividend
of
$200,000, the capital thereby

i.as

dividend of 25 cehts per share has
been declared payable March 16,
and an aggressive new busi- 1956
to stockholders of record
program
will be followed, March 8, 1956 A..2% stock divi-

tion

$1 356 417

re-

bank

of small business
loans will be given special attenvarious

than

less

paid dividends in gach of the past

at *100

Comptroller,
The board further announced that
Vice-President

j3

corded

the American

of

directors

The

*

*

♦

including capital reserves, of not
^

ings

Eoth

as

.

854

.

and

res

of

a

declared

dividend of 30 cents
able

April

2

quarterly tial subscription price of $35 for previously with A. G. Edwards &

a
a

share

pay-

to. stockholders

additional

the

of nounced

that
,,

.

shares

and

transferable

stock divi-

an-

record March 16. The dividend, rants would bei issued Thp shareto nriPP
rimnnnfinrt
CQHO (100
ill
Ha L i"i1
i
t a1
ixr

arc

rvi m

a

\r

amounting to $300,000, will be holders immediately, The price
Paid on the new stock issued as set by the board for the
well
the
wel1 as the old, Mr. Lane said, shares, it is stated, is approxiold> Mr- Lane said, shares, it is stated, is api
new

Details

of

the plans

to

increase rhately

11%

Sons.

war-

,

as

*
a

also

below

the

With Dean Witter
(Special to The Financial

Chronicle)

PORTLAND, Oreg.—Donald H.

Bueerman

is

current Witter & Co.,

now

with

Dean

Equitable Building.

The Commercial and Financial Chronicle
56

t.

Thursday, March 15, 1956

.

(1344)

$5

Continued

from page 7

a

the

Techniques
Real Estate and Securities

Similar Investment
In

ward of him is the

Thus

discovered that

have

we

You are not

underlying in¬

all

in

of your

them

specifically

he

what

gets

Advantages

,

There

considerations

other

are

that each of them

They get

gets.

has

never

by the same secu¬

upon

bit about Webb &

people in

so

far

lar, land on Fifth Avenue has yet
to achieve
$300 a square foot
plottage in 1956, and I
told you that in 1929, $400 was

achieved.
Costs

There

is

only

that
is

reason

one

that

million

$12.8

for

deal in its entirety

one

any

the

cannot

find

a

budget.

of

size

the

do know, the smaller
the investment, the

broader the market.

that

So

property now be¬
much more liquid and, in

comes

our

perhaps more liquid even
than
your
security business.
If
somebody said to you, "Here is
Corporation A—not a real estate
comoany but an industrial. Go get

a

sense,

this

us

$10 million for it," you couldn't

$10 million. You could only
get at the rate of $10 million for

get
a

small

piece of it.
Small

business

This

might

in

real

real

estate

has

been made liquid by having

never

it

that

sufficiently small

create

pieces

to

liquidity within the assets,

and

it is better that way, because

the

market

The
way

stronger
real estate

that

40%

it

immediately

discount.




way.

finds

I

non.

very

v

It

for you to
unusual phenome¬

going

am

make

to

the

point that high grade urban land
has

not

had

relating to

a

or

anything

remotely

reflection of either
improved

business

its

at

$4C0

in

Avenue

the

50's

sold

foot. Land on
Park Avenue, for residential pur¬
poses,
square

60's

on

a

square

know sold for $175 a
foot, and so did land in the
Fifth Avenue, for $150 to

I

$175 per square foot.
Let's

the office building.

Those of

you

office rents of

as

se-

1929 will recall that you paid $5

for

a square

foot to

move

building in

into

are

that

the

oppor-"

inherent in

are

this

land

that

took

the

from

it

converted

and

status

optimistic, very optimistic
real

the future of

Development

estate.

We

on
are

very
are

our

in

August.

Continued

'

is

stock

The

out.

$5 per

took

We

New

who

are

all

see

you

buildings

under

York.

of

con¬

You

see

seeking to
profit.

not

increment

land

builders

making

are

a

a

it

work

like

$5

Sterling Strength
grant

economic

large

scale, any more than she
a
position to substi¬

square

when

says

Field

Roosevelt

So

we

ulation
low

say

in

to you that the spec¬
business

our

from

is

suburban

the

urban;

grade

I

foot.

illustrations

ex¬

are

am

telling

it

you

earns

And all of the buildings that

that.

have been built

with

built

were

Roosevelt Field

on

that

loans

cov¬

entire cost of the build¬

ered the

in

is

the bases conceived.

a

new

1929. You

pay

the

in

that

a

can

in which

commodity

that all there is

is here.
that.

deal

It

in

is

any

he can say
going to be

ever

Only real estate can say
seem to be able to pro¬

We

rather, three: one is low grade duce unlimited amounts of tex¬
urban, where it is possible, for tiles, unlimited amounts of chem¬
example, as in the case of the icals, but I say to you, the earth's
United Nations that I spoke
of surface is pretty much of a finite
earlier, to take land at $2, $3, $4 thing. I say to you that it has a

or

and

$5

a

square

foot and convert

it into $100 land—from $5 to $100
is 20 to 1 — by a great major

reconception

of

the

use

of

that

can't

buy

a

lot and do it,

single lot, but you can
buy a great area and convert it,
if you have got the vision and the
capacity,
from,
let's
say,
a
is,

a

slaughter

house

office

sible to have

in

only
urban

go

a

that

20 to 1

type

a

of

can

$250?

judge by its ability to
itself, se^ms to be un¬
in its ability to expand

limited

therefore

customer

for

grade

rural,

anybody expect from
foot? That it will

Well, that is

a

25%

bigger,

demanding
limited,

one

and

because

transportation,

suburban

large
new

which

close to

Orleans

as

was

of

of

now

in
re¬

areas

of

means

of

make New

New York

as

50 years ago in terms

time, if that is

a

rating of dis¬

economic

influence

would

about

We say to you that

those three

sterling

be

them

over

futile

as

to

as

water into the sands of the

pour

Arabian

Desert.

Limits

;v

Aid

Economic

to

There is indeed

growing feel¬

a

in London that a limit must
be placed to economic assistance
to "neutralist" countries. Britain

ing

and

have

United States

the

even

enough capital * resources to
satisfy everybody, and it is in¬

not

creasingly

felt

countries

that the need of
should be given

priority. In view of their immense
requirements, this would leave
very
little
for
neutrals.
This
course is advocated on the ground
States

and

Britain

if

that

United

the

to dissipate their eco¬

were

by spreading it
field, their politi¬
cal
influence
would
probably
suffer. It is felt that compared
strength

too wide a

over

with

this, Communist economic
expansion in the form of capital

neutralist

in

projects

would be the

countries
evil.

smaller

After

all, these countries have not been
exactly bursting with gratitude
for the economic help they have
received
from
Britain and
the
reason

be

to assume that

in

It

in

for

was

The
sharp
Com¬

some

House

the

no

the Middle

in

attitude

came

criticism
mons.

is

they would

grateful to Russia.

more

American
East

There

countries.

Western,

of

pointed

out

that

disagreement

Anglo-American

the Middle East oil is paving

Russian penetration
of the world. It is
certainly not to the interests of

the
in

way

that

the

weaken
the

for
part

United

policy

States

which
Britain

to

pursue

would
by

a

greatly

undermining

strength of sterling and which

might compel Britain to relax the

of

strategic

goods to the Communist

countries.

ban

tance.

a

The re¬
quirements
of
these
under¬
developed countries have virtu¬
ally no limit and to try to satisfy
them in the hope of maintaining

over

believe

urban,

orientation

in

that

That is why we
low

pos¬

thing,

a

shrunken commodity.

high

switch, but

become

ever-growing

larger,

Yonkers

per square

to

to

It is still

land.

What

$200

zone

zone.

to

race

procreate
and

You

that

who,

hurn^o

the

called

customer

the

for

on

present imported.

nomic

rural.

the

man

potential

rare

oil

dollar

at

Allied

V'- ' V

ings.

assistance

foot.

is happening

per

is all that

And that

Then, the next great potential is

reason,
we
have
changed the emphasis in our com¬
pany and have determined to get
away from
the high grade land
operations business, and we go
in for two other kinds of land,

16

Middle Esst Oil and

acre

profit,

that

page

land and 12V2 cent land, and make

square

For

from

now

Ceiling Price

point,;
in

a

grade

just take the example of

who remember the

office

the

all

land.

1929, high grade urban land

Fifth

on

curtain,"

are

Other Land Potentials

sells

into the form known

curities,
a

is

moment

a

We

on

interesting

be

realize

foot, roughly.

square
Land

This has been made nossible by
buying land at
foot, building a three things: Reconception of use,
building at whatever it costs, $25 implementation of reconception,
a
square
foot,
and
making
a and adequate financing to put it
builder's profit through a return. over, having rented the buildings

conditions.

damning

this
office

$200

fine

has happened.

a

land—these

struction

with

and

"iron

the

of

London—they

make

/<

that

figured it $5,000 an
Now, I would like to end this
$5,000 an acre is 12 % little discussion by saying that we

and

acre

tremely dramatic illustrations, to
be sure, but nevertheless they tell
What is the conclusion? I tell
the story I am trying to tell—like
you that high grade land has not
Roosevelt Field, from 12Vz cents
risen and probably will not rise
a square foot to where it earns at
materially again, unless we have
the rate of $5 a square foot.
an
inflation, which none of us
I am not telling you that the
wants to see, so why does anybody
land could be sold for $5 a square
deal in real estate?

<

lack of liquidity is due

fact

the

to

of

buildings

what

is

Here

In

estate for

side

Land

I am speaking of
Fifth
Avenue
properties in the
40's and 50's, Park Avenue, Madi¬
son
Avenue, properties suitable
office

believe

we

We

there.

of
on

same.

and

inflation

Pieces

States, and it is true
metropolis in the world

Paris,

I remember verv distinctly what

apartment houses.

And

trinities

purchases were $7. After we ac¬ type of work are so vast as to
quired our stock, we distributed make possible real estate capital
$5
a
share
as
a
nontaxable enhancement for those who would
liquidated dividend and reduced take on that type of work out of
the corporation to merely its real all
proportion to anything that
estate value of 350 acres that lay has ever happened before.

went

United

builder's

fine

?
we

Those of you who recall have started the thought of urban
price of Roosevelt Field less redevelopment on a large and a
than six years ago on the Ameri¬ highly developed, highly skilled
can Stock Exchange—it was sell¬
type of redesign and reconception.

tute

people

improvement

all

are

Field.

oil

every

interesting to know that high
urban land has not risen
anything like the ratio
of almost any other commodity.

ultimate

years

of that idea,

furtherance

In

metropolitan city in the

every

grade

for

25

conditions.

of

happened since 1929, to what I am
now describing as high grade ur¬

because you

than

older

true just of New York.

is

land,

your

"■■■

These

ban

of that is the illustration of
our firm did with Roosevelt

talking about. And this is not and that is all the stock
It is true it sells for that price.

am

and it

break it into six different
pieces of different qualities and
different sizes, it is easy to find
a market for those smaller pieces,

you

that

fact

high grade urban land has a ceil¬
ing on it, as a result of what I

zenith

its

the

of

And the final conclusion is that

the

to all intents and purposes,

what

selling for
$13.50 a share after a three for
rents have not. Rent remains the
one split.
It is not that the stock
biggest bargain in your whole went
up, it is that the real estate

Land

reached

has

land

you

operating costs
and taxes have risen; your gross

in value in

easv

result

the

believe that high grade ur¬

We

are

generating more and more low
vert acreage to urbanization use. grade
urban
through
what
is
known as blight and substandard
The best illustration I can give

construction costs,

At

ban

word

everything else did, but on the
so-called great rise, a ceiling has road and converted it into a shop¬
been put on it and that ceiling is
ping center which will be opened

Knapp and its

market for all $12.8
million.
No one man necessarily
wants all of that asset, but when

liquid

am

didn't sink and dip way down, as

satisfied be¬

Grade

High

are

haven't been liquid, and that

we

not going to tell you that
land
that did
sell at $400

I

as

liquid. You who own
not liquid."

are

real estate

result, notwithstanding the

a

value for

tates is concerned, and

securities

word

optimistic on it, because we
optimistic on the future of
country.
But, of all things,
into a dual character development.
on
real estate selec¬
Half was industrial—half was a optimistic
tively; wisely. There is no single
shopping center, retail.
part of real estate that is not sus¬
On the industrial side, we built
ceptible to imaginative, courage¬
loft and manufacturing buildings
ous
use
and redevelopment, but!
for firms of high grade credit,
it should be borne in mind that
such as Fairchild, Sperry, Amer¬
nobody can go into this business
ican
Bosch, Armor Corporation,
and make money, any more than
Graybar Electric Pepsi-Cola, Uni¬
he can in yours, without an ele¬
ted Parcel Service, and others—
ment of judgment and experience,
single tenant net leases.
courage, and a will to do some¬
We took the other side of the
thing about it.

As

real es¬ plans, and as it sees the real es¬
that is, you tates business right now. And I
have always said of your invest¬ only speak of this as a matter of
ments in securities, "We who hold philosophy.
rities

use

"suburban"—where you can con¬

acreage

fact that we have a 60-cent dol¬

possible to do something fore, because it is rare that one
person
wants the whole picture.
here that, for the first time in the
We have people who want differ¬
real estate business, generates a
ent kinds of pictures for unique
quality to real estate as an invest¬
reasons
each one individual has.
ment that has always been boasted
I would now like to talk a little
about
by securities people and
frowned

the
the

use

will

I

—

and the squeeze came out of the
land.

is

It

"rural"

at the same
somebody had to take the squeeze,

need many tele¬

been

*

;

cents

being

liquidity, a more realistic price.
We satisfy an investment demand
that

Estate

Real

in

the net yield
"cap" rate,

sult selling price on

preciation and doesn't want the
phone calls to sell a whole com*
land, which can't depreciate, has
pany for $10 million.
a
great benefit in being able to
That
is the "Hawaiian tech¬
depreciate the building only and
and I just thought it
retain most of his cash earnings. nique,"
would be a matter of interest to
The man who bought the lease¬
explain it to you.
It has been
hold has generated a brand new
adopted very broadly in our busi¬
depreciable asset, a capital de¬ ness.
preciable asset, a leasehold estate
Real
estate also has found
which he may amortize.
And the
liquidity in different forms
man who finally owns the equity
through these participations bv
can
depreciate everything ahead
great syndications, but, again, all
of him.
you can say of those is that they
There are many people in this
are liquid
for very small pieces,
thing who have many different but
every single one of these dif¬
considerations and interests, ex¬
ferent
forms
of
investment in
actly as it is in your business, but
every single property I speak of,
with many advantages that your
if the property itself is sound, has
business doesn't have.
For ex¬
a broad mind for the entire chunk
ample, we don't have the problem and a
very easy mind.
of the
Securities and Exchange
Thus, in one shot, we develop
Commission.
This
is
all
arm's

Liquidity

with the gross rent the
and the capitalized end re¬

yet

same

of $2 million on that deal on
advantages in dual depreciations. the
telephone. I know that two
For example, the land owners who
telephone calls will bring the next
don't have taxes and, therefore
guy.
Maybe six telephone calls
don't require depreciation, are one
will bring the next guy.
And all
class of investor. The fellow who
the way down the line.
But I
owns the building, who wants de¬
know that

length but trading at short range.

Blighted Conditions;'

ing for $6 and $7 a share, with $5
a
share in the bank. Our first

pened; because we know that it
costs you twice as much to build
it, twice as much to operate it,
and twice as much to pay taxes,

gage

you

of

areas

the

product is the same
capitalization rate, isn't it inter¬
esting to find out what has hap¬

liquidity, because I know there is
a market for the underlying mort¬

the great

are

Getting back to the subject of
low grade urban, our cities that

investment

is

areas

v

is rural

type

not

great

potential.

Land

other

will

I

terribly

a

Now, then, if the gross rent is
the same, and the end result of
the selling price of the finished

es¬

about

talking

am

Rural

the

Then,

not

land.

and

I

and

speculation.

the end selling result of
completed property sells in the
same capitalization
rate today as
it did then. A high grade office
building will sell with from 7 to
8% return; a second grade, from
9
to
10; a
third grade office
building, from 11 and so on.

Calls

Telephone
What

attractive

Gross Rent

Now,

the
market, and if you take it apart,
you will find your real estate, the
selling price, the stock reflecting
the real estate means you are sell¬

wants.

enhancement

range.

a

that are inherent
dealings, in all of
your corporate security setups are
possible in real estate, but the end
result is $12.8 million, instead of ing your real estate for about 60
I don't call
$10 million, and we have five, six, cents on the dollar*
It is no trick to
and sometimes seven investors in that liquidity.
the same property, just
as you be liquid at 60 cents on the dollar.
is ridiculous, that is not
have in securities, no two of whom That
might even know each other. It liquidity. That is a penalty you
is not necessary, because each of pay for a theoretical market.
all of the things

same

v'

liquid in your busi¬

ness
I will take every real
tate company I know of on

first mortgage type.

vestor of the

foot in 1956 in a new
building, sometimes $6, in

square

office

on

the

export

Volume 183

Number 5516

Antenna
Outdoor

five

a

color

tics

sound

sales

antenna

point step-by-step

possibilities

market

is

the

invest

described

by

gain; (2) High-signal to
noise ratio; (3) Narrow unidirectional polar pattern; (4) Good impedance match, to deliver usable

Edward

Finkel, General Sales Manager,
JFD
Manufacturing
Co.,
Inc.,
Brooklyn, N. L., to ihe electronics
distributors

participating

in

color video to the set.

talk

But

$500

to

up

for

TV, it makes good

+he

is

that will give him the finest reception possible in this new, more

kev

successful

to

getting

of

Chicago Parts Show.

In

Mr.

be

onerations

explained

from

-

14

page

65

million

antennas

outdoor

have

last 10 years.
door

TV

been

in

sold

difficult'
ainicuitv*

antennas represented

in

this total have given their owners
more
than
satisfactory service.

hour

Some

of

cel

many

of them four:

them

have fallen
years

apart;
old

have given their all and

more
now

in

mit

Let

not

us

States, the average work week
this country was close to 70

permit
time.

consider

the

as

this

Sated

in

form

of

automation

in

old

^

been

.

finding :it
make decisions by the

to

methods

•

ingenuity

•>

•

by

up

:vl

a

\

■

like

would

to

the

are

promote

ment problems.

best

First,

an¬

in

for

replace¬
ment, both technically and com¬
mercially. The fewer models he
.

management-by-intuition,

on

muddling through.
Decision by intuition and "rear-

view

mirror"

managing is taking

present
tomers in his

and

potential

attention

analysis j of

v

"

long

to

gutted

-

which

can

:

merchandising is

promote

take

can

two

sets

make and hook
antenna to
of the

one

and

a

same

old rusted

an

new

set.

The

combine

with

the

surfaces to form

version

bent

elements

pitted element
attenuator pad

an

signal strength

the

on

first set with the rusted antenna.
Over the old antenna he can
hang

sign "Wanted for Murder of TV
Reception in this Area. Reward."

a

"(4)
Small
space
newspaper
advertising doesn't cost. It pays.
Small

ads

paper,

in

even

your
local news¬
classified advertis¬

ingly

will

installation

it.

unearth

_

a

surpris¬

large number of calls

that

will lead into sates for the enter¬

prising serviceman
gumption to do so.
"(5)

Out-store

banners

in

displayed
ice

front

who

has

the

merchandising
of

the

store

the side of the

on

or

Time

to

with

"TV Picture Bad?

Check

the

number

Your

Antenna"

serviceman's

prominently

UUU1WC1

phone

displayed

mo^/iujrvu

will expose hundreds of potential
customers to his message.
Here

moving
that

times,

"he

And,

this

business
well.
to

is

In

it

who

but

these

is

not

ment

only

wise

in
as

particularly

with

so

The

basic

limit

as

to

information that can be simplified,
1UI Hid
quickly and accurately, is essentially how many computers do
A
you wish to buy and operate.
A
management
that
regards
the
...

-

,

11LUI

—

ma c

cau

k/W

„

,

in connection

national defense.

our

than

be.

The electronic computer and its

,

computer as a new system
one
capable of handling the new management problems of those mo ern fast-moving times-can more

associated equipment is more than

just simple automation for the
office, a cheaper and less laborious way of accomplishing paper-

"

tromc automation, it has become
possible for management

"JJ .^^ ° base dec]

.

character were noravailable under older
available

.

an

in-

than

of automation

strument

the

giant devices on the typical automobile assembly
■

presses

,

,

.

,

large

our

T.

bomber planes.

ug5

„„

which form and

produce huge sections of
r

spe.e^p 0f rr

i

has

been

abused.

t

I

that

hp
pvp
believe

that

the work week for the worker

has

been

of

that

decreased

suc¬

management has been in¬

cessful

situation is
worsening.
Today, there is no
way that management can keep
on top of the job, except through
a faster arvd simPi'er reporting and
anaiyZing 0f their business probcreased.

And,

the

-

-

-

3

—»

-

line'or'thi limw !cms' Electronic computers
°
t

hydraulic

In

as

philosophy, the elecless

t a n t information
application of elec-

tools which can be of great assistance

It represents

au-

in

this.
.

The
.

,

are

variety of speedy analysis
^

iimited

and

only by the kind

complexity of the business.

fUreaU °* Cen®us.nas Deen aD1^

The

installer's

only

time

and

—o-—

"Another

wonderful

selling

uppui tumiy
•portunity

that the sex viccnmu
uicu
uic
serviceman
capitalize on in the present
future

is

the

color

market.

Douglas Carpenter
engineering staff have
extensive

laboratory that
with:

possible accomplishment

x

--

tests

prove

(1)

in

TV

and
con¬

their

it takes

an

Unvarying




up-to-date

is not predicated upon

in this

guesswork.

connection, not only

our

the

age,

trained

electronic
are

management reduce the

can

way

chances of erroneous decisions
The prompt analysis of data by
xuv

W

*/

~

we

far

as

concerned.

With

the

have

methods of

had

to

put

the

the

past,
office

emphasis

on payroll, production,
sates, evnenditure and profit rec¬

ords.

We

have

been

realistic

the

economic to

or

speed

and

payroll

ac-

computer

to

general

look, aided by the UNIVAC, the
IUUA, aiucu vjj
~
,
—
RnrPan

nf

rvnsn<?

unable

to

been

has

reports

a

various business phases

and

'•

more*

.

Top management should assign

It

is

electronic

computing.

important part of man-1
agement's duty to see that there
is

an

of

reserve

a

management

ma¬

terial to step

into its shoes on the
day it lays down its responsibili¬
ties.
We must always have an
efficient and intelligent pool of
managerial material available to
replace the present day bosses

able

wholesale

month on
in the

areas,

re-

which

electronic

duce

"

dangerous, conditions.
ornw<;
As an execut ve grows, so aoe*.
executive grows <?n noes
does

operational fac-

burdensome

and

businesses

run

at

normal

a

with no unusual situations
cropping up. The avermanagement jjia
age management plans for the future under the handicap of keep¬
pace,
^
—

fact0rs

(zt —

ing

W.

eye

one

data

constantly

the

on

adaptable to use in "management
by exception."
Although the advantages that
can
accrue
to management

-

-

--

.5

-r

1-

Gen. J. E.

Dahtquist

Joins Harris,
John

General

U.

S.

ifpham

E.

Dahlquist,

A., who retired

Feb. 29 as
commanding general of the Con¬
tinental U. S. Armies, has joined
Harris, Upham
Co.,

120

Broadway,
New

City,
tor

York
as

of

direc¬
new

a

service,

The

Armed Forces

Department,
according to a
joint
an¬
nouncement

Geogre U.

by
and

Henry U.

Harris,

senior

of

partners

through the use is little doubt that
of computers are
manifold, there

significant contribution
of this whole new development
is that the emphasis becomes one
of dealing in up-to-date data—
the present and
the immediate
past, not the ancient past.
Thus
management is able to formulate
reliable judgments and effective
most

'

en--

management

poor

_

present moment, always watching
for a
danger signal.
The elec¬
tronic
computer is particularly

the

will
to

processing

do
satisfactory job and good man-,
agement to achieve an excellent-and superior job of managing.
a

a

&

t0/ew

such

of management is, that elec¬

area

tronic

„—

computers,

UNIVAC, hope to make in the

as

able

—

■"

~

i-

the

nation¬

wide

Dahlquist

broker¬

age

John

E.

firm with 35 offices coast to
and members of the New

coast

York
In

Stock

Exchange.

making

the

announcement,

ml

controls to meet conditions ahead.

Computers such as the UNIVAC

able to telescope data
condition of the industry,

are

the
the

^

-

tail

nr»rmirp

few juniors to this same routine

the basis for easier de¬
cisions, thus freeing executives
from physical and mental strain,
but also it will help them keep
aware of unusual,
or potentially

probable
position,
economic
picture,
p.cture,
reports to the point where it now present and future, and managements problems—to a focus that
expects to produce several hundred different

tn»

of atomic energy—have long had

electronic computers will not only

provide

expand its business leporting C0mpetit0rs'
ri0„?n01.
deWcis" from a few simple business census the general
from a few simple business census the

so

data"Processing

It isn't

restrict

members of the manage-,

tbam

-

own

p 0 r

the

tronics-

look
simply as
a
cheaper way of getting payroll
or similar mass
production paper¬
work accomplished.
no

m

t current age it is not the worker,
but rather management, which

at electronic computers

computer is

j

through

systems of data processing.
Initially, most companies

tronic

0f

sjs

_to get

it hardly scratches the surface of

business.

the

imagination.

antenna

needs

data

groups of young men at workstudying and working on atomic:
energy problems.

—

-

counting. By means of its forward

ducted

said

.

panies-

w

a payroll system, by
computers
than
by
the
older
T^^rnL''0"
UJf
methods. This is important, but

his

over- ;

often

when discussing the atomic

.

ations within

the

have

I
.

-

placement

trade-in

of

easily accept the improvement
the area of
s
P
m01'e
work.
It
enables
speedy
data management methods which this Then, it becomes more and more
processing for the development form of automation can bring necessary for him to manage, at
and engineering programs which about.
least in part, "by exception." This
are so important in most business
approach gives him more time for
Managerial Work Week
important decisions and frees him
activities, today. Most important
There is a special value to the
of all, through this form of elecfrom the constant focus on routine
faster receipt and adequate analy-

accuracy

and

As

have knowledge as to
problems but we must when the time comes
decision know the basic facts with respect
Finally, it seems to me that the
they would other- to our competition. Only in this contribution that those who pro-

can be handled more speedily and
accurately, regardless of the vari-

can

clear idea of-

of making

fhst cotton gin. It is true that

is

looked.

respecting

ment of the situation or condition

the amount and complexity of

international and national affairs,
and

means

a

Making

facts is in a
sound de¬
cisions promptly, and at the same
time to feel sure that his judg¬

Payrolls for 1,000 of for 20,000

liberal

i.1

-<

executives suffer
:, .
- y,

The executive who has the ben¬

And

sounder

lost."

It is of supreme importance
all in the conduct of our

us

safe

fairly

and some parallel, gives manage-

true

is

government

in

is

ing the

fast-

indeed

hesitates

true,

ahead

road

offer

the

can

limit

a

order to make sound

thing else that should nob be

a

be utilized to good advantage.
These are only a few approaches
to create lucrative
antenna
re-

again

L

our

attacks.

effects of a number of
regain their complex operations, some in series must we

even

position.

Under this

announcing "Your TV
Picture Is Only as Good as Your
or

many

Decision

Speed and facility for integrat-

new

serv¬

truck

TV Antenna"

The

idea they have fallen
far behind and will have to
fight
a

P0^ of
mallv not
mally not

...:n

of

cardiac

future

into

experience

better position to make

!'f„Stwhf,hUTA^r^H^ePRPtS

estimate

so

past

efit

check-up

antenna

<•

influenced by our ability to trans¬
late

But, unfortunately, in most
business operations of toaay tne
available historical experience is
so ancient that it is inapplicable.

ing, —...s a liberal trade-in on
offering «
—
old antennas, or a free antenna
~s,

or

that

is greatly

success

ence.

antenna to the second

same

reduce

the

well be one of the reasons

Our

the

the roadmap of historical experi-

re¬

serviceman

of

up

identical

to

approach

antenna

The

may

•

is

former

placement sales.

executive and

of

when the way is pointed out by

with

shops and mail
equipped to do the
job to every family in town, and
in surrounding
areas, if necessary.
of

minds

to sit

„

letter

avenue

'

every

They cannot afford

their hardest to

In-store

take

must

and poorer de-

poorer

cisions, it produces doubts in the

happenings.

well

another

*)

•

decisions promptly, there is some-,

mont

try to project past experience into

getting the jump
on
them.
For, if they do, they
may well find that by the time
they decide it is safe to go ahead

an¬

j

"(3)

the facts in

and : younger

—u

the future.

I point out that those

may

management

results in

the past

on

decisions. We

our

eompetition

cus¬

tennas.

are

agement to have

"

and ponder and worry white their

community will go
toward calling sorely

way

"Local

Trained Minds

-

deadly toll than some 01 ^electronic aaia neeus uie uauieu

a more

zations.

"(2) A direct mail campaign to

firms

•

sees i

While it is important for man-.

electronic

opportunity to improve the com¬
petitive position of their organi-

promotes the more concentrated
will be his sales efforts...
•
<

past,

extent

some

for the basis of

.

which
to

pend to

emphasize the

advantages of the application of
high speed computers to manage¬

/

"(1) First, the serviceman must
analyze his local market to de¬

needed

management

as

j

backed

little effort.

long

cannot

and

—

a

And,

ef£iciency and accuracy pos- >
sibIe 111 using electronic compu-■
rely upon them more:

is

management

personal

termine

-

ousiness

"

tennas

compli-

so

-

-

wherever

office claimed it would. It has ere- computers will have a significant us realize. The pressure of con- minds of the junior executives as
lgnorai}£e „and ated, and continues to create, impact on what management ex- stantly keeping one's hands on well as the maturity of top manapathy.
more
and more jobs because in pects of its accounting and report- every detail of a business through i agement.
We must , encourage

i

little

^

or 011

computer can follow.
The growing use of electronic

the

.

historic

rely

There are many scientific approaches to the other management
problems
which
the ' electronic

eaidy antagonists of

have

-

harder

—

management.

that

wil1 ultimately be given the jobs

by the tax and otto legal

All

.

■

jobs

them

find

been less efficient. the computer

and administrative regulatory
equpiment did not governmental activities.
^wnmpntai nH-.ivtt.ipsj-

to

us

of

tool

will

rtodav
toaay,

accoi^il^

Ja.^accompiisn,

problems

Electronic Computer

Ax.v.

deterioration

useful

a

rreelbecomingS1soSSlargea and 'our the

per¬

deci-

management

available office

between

war

prompt

sions. Much data consider importhat*rtant had to be neglected because

forget

The typewriter, anwi
and the maiji/pwrnvr,
lire
machines that have grown out of it
over
the years, did not destrov

picture from that of a bril¬
liant image of a dull ghostly ver¬
sion because of unexploited con¬
R1im_„

accomplish these in time to

much

a

hours.

of his

sprvippman

of

the

opera¬

insidious

of

after the close of the

are

stead
of performers.
The mere
fact of their existence as accept¬
ed by the set owner as patent evi¬
dence of their continued
The

instead

This is part and parbusiness
and
industrial

one.

progress.

or

merely roof decorations in¬

tion.

week

longer

the

business

This is particularly

snonsibilitfes

the

The 50 million out¬

for

historic systems and methods have

indoor

and

of

progress

one of evolution as much

You
™

to

the

computer

if will be acquired by the ma—
jority 0f companies, but primarily
of how completely it will come
hmi7
it «/iii
to be applied by these companies

decision, can only be
by the electronic com-

a

--

man-

as revolution. In saying this, I
am thinking, not of how rapidly

that "close

Finkel

Naturally,

as

Continued

expert

today.
electronic

it

produced
Puter.

have

to

57

agement of tomorrow's operations
—-

*•

compilation-

hours

sensitive medium."

it possible

in
-

■

in time. Data that
accurately portrays conditions, up
within
a
few days or
even

to

him to be sold the proper antenna

These crit-

.

requires to keep going profitably,

new

a

sense

value

regardless of what kind of
a
management

data

is asked

consumer

of inestimable

be

the field of marketing.

for

which

the

his

color

channel

antenna

After the

ance.

to

in

kneil

antennas

been
limping
along
on
shoddy black and white perform-

assist to sales is noted.

Opportunities

death

have

Color set

program.

the

will

characteris-

reception

ancestral

many

television

indoor

in

(1345)

ical

Replacement Is Big Business

and

described

The Commercial and Financial Chronicle

...

where the computer brings

the

picture of the future closer to
the eyes of management, it makes

the Messrs. Harris said that "under the direction of General Dahlquist, whose department will be
located in the Shoreham Build¬
ing, Washington, D. C., Harris,
Upham will expand its services
'

•

—ni

to all U. S. armed forces, here and

Mmen^securibes'1L^he'ma?
jor

part in

a

balanced savings

both individuals and
+r»
nrnvide
order
to
provide
growth factors along with fixed
income
savings and life insur¬

program for

j-

families,

ance."

in

58

The Commercial and Financial Chronicle... Thursday,

(1346)

based

Continued

from

2

upon

volume

in

million.

page

It

expected

The Security I Like Best

arising

estimated

an

1956

of

gives

at

sales

least

$500

reflection

no

capital
gains
from
the
sale

to

income
of

the

Gloucester titanium dioxide plant
New Jersey Zinc.

to

monia, acetylene, sulphuric acid,
Four major expansion
projects
hydrocyanic acid, and their end
are under
consideration, namely,
products—ammonium sulphate and
the doubling of the Fortier
petro¬
(e) The device for the mass acrylonitrile. Demand for acry- chemical
plants' capacity to pro¬
lonitrile
seems
clearly destined
examination and early diagnosis
duce
acrylonitrile,
construction
for impressive future growth be¬
of cancer
is progressing satis¬
of a plant to produce a new chem¬
cause
of
the
end-products
in
factorily.
The first installation
ical, acrylamide, which is con¬
is expected in the Spring of 1956 which it is used as a raw material
sumed by the mining and
paper
—synthetic rubber, plastics, soil
at the Strang Clinic.
the commercial pro¬
conditioners and synthetic fibers industries,
This

is

a

$50,000

with

item

an

ultimate market of perhaps 50 to
100 around the country.

search is thus creating new hori¬
for antibiotics was the recent

that

has a
in con¬
trast to only seven days in the
case of untreated meat.
Although
similar treatment for red meat,
fish and other animal and plant
commodities has not yet reached

approval

by

the

Food

& Drug
Cyanamid's

of

aureomycin as a preservative for
dresseo poultry.
The addition of
that broad-spectrum antibiotic to
the water in which dressed poul¬

the

of

the

organisms
which
spoilage. It is understood

cause

Continued

from

of

so

two

treated

weeks,

of Food & Drug Adapproval, it is a fore¬
conclusion that it eventually

stage

ministation

try is chilled delays the develop¬
ment

poultry

shelf-life

zons

Administration

March 15, 1956

gone

will.

,

.

5*

page

,

It must be obvious from my re¬

that

marks

I

bullish

am

on

the

company. I am reasonably certain
that volume, some time in the
next five
a

years, will increase by
factor of two or three made up

of both government and commer¬

cial business.

Profits during that

period,
200,000

relative to the present
share capitalization and
the $34 quotation, will be high
enough to
justify substantially
higher prices for the shares. The
floating supply is small, thus pur¬
chases should be made carefully.

(known
Du

fibers),

acrylic

as

Carbide's

Union

as

"Dynel"

such
and

"Orion."

Pont's

The Fortier plant has a present
productive capacity of 50 million
pounds of acrylonitrile per an¬
num,
as
compared with the 35
million
pounds capacity of the
company's old plant at Warner,
N. J., which uses the high-cost
process
of making
acrylonitrile

calcium carbide.

from

Because

borne

plant

in

of

ease

mind

expansion

when

was

Fortier

the

designed and built, it
that its capacity can
be doubled at a cost of only 50%
Analyst, Granbery, Marache & Co.,
of its original cost. And plans for
New York City
such
expansion are now being
American Cyanamid Company
completed. This is highly signifi¬
cant
in
that Cyanamid is cur¬
American
Cyanamid
common
stock, in my opinion, is currently rently giving serious considera¬
a
desirable purchase for capital tion to the question of whether
gains purposes for the following or not to go into the commercial
reasons:
production of
an
acrylic fiber
(1)
Because of
which it has been developing and
which at present is in the pilot
the favorable
outlook
for
plant phase. A final decision is
further
believed likely in the near future,
and
if it is a
positive one, it
growth of de¬
mand for the
would have very favorable im¬
plications
relative
to
further
company's
products and
widening of Fortier profit mar¬
the many in¬
gins.
dications that
Another reason for expecting
Cyanamid's
earnings' improvement in 1956 is
future sales
the recently dedicated, new $15
volume will
million titanium dioxide plant at
reflect such
Savannah,
Ga.,
which
uses
a
growth. (2)
process in the production of titan¬

!

DONALD S. WARMAN

Donald

Because

S.

f

Warman

American

Cyanamid common stock is cur¬
rently underpriced in that it is
selling at a lower price-earnings

was

is estimated

ium

dioxide

(mainly used as an
ingredient of high-grade paints)
which

is

efficient

more

nomical than the

one

and

used

eco¬

the

at

calls

for

the

construction

cilities to manufacture

of

000

mo 1 d ing
com¬
using acrylonitrile and
acetylene made at Fortier as raw

Atlantic,

this

in

turn

introduces

the

ings of $5

stock

common

fac¬

earn¬

cyanamide,

widely

a

a

American

diversified,

Dollar
nine
an

number

sales

months

of

this year

annual rate of almost

lion.

The

individual

manufactured
number

by

around

200 industries

the

5,000.

are

first

was

fact

on

Cyanamid's new $52
million
petrochemical
plant
at
Fortier, La.—near New Orleans—
which

this

into

went

year,

is

operation

now

in

when it should begin
ute significantly to

the

early
stage

to contrib¬

earnings in¬

stead

of being a

Specifically,
during

the

the
first

drain

on

them.

Fortier
plant
nine months of

last year incurred a loss as a re¬
of starting-up expenses and
four-weeks strike which was

sult
a

equivalent after taxes to 35 cents
a
share on
Cyanamid common.
However, operations in the final
quarter are believed to have been

either at the break-even point

modestly in

the

or

black.

The Fortier

plant, using natural
gas as a raw material, produces
nitrogen compounds, namely, am¬




134,797 cars

expected to roll off assembly lines
said, a 1^4% rise over the previous

were

significantly,*!'however, the week's

yield was 7.4% higher than the 125,502-unit depth
building reached the week ending Feb. 25.
car

Adding to this optimistic outlook was Chrysler's recall of
4,700 of the 9,800 employees furloughed since last December.
were slated to return to work this week.
This more than,

They

,

offset the 1,100 workers laid off by

Studebaker during the current

period. In addition, Packard car lines, inactive since Feb. 1,
resumed operations on Monday two weeks ago and sizeable pro¬

work

gram

said. Some 25,037
1.5% from the previous
week's 24,643-unit volume.
T
On a year-to-date basis, truck building, through the past
week, was enjoying a 28% lead over the year ago aggregate—«
241,965 to 189,180. Car production was lagging by 18%, that is
vehicles

$450 mil¬
products
company

More than

sunolied by the

boosts were noted at American Motors.
output remains strong-, "Ward's"-

Truck

*

at

were

on

tap the past week,

up

1,353,970 to 1,643,661.
'
In Canada, car-truck building rose to a seven-month high last
week mirroring resumption of activities by General Motors, strike¬
bound from Sept. 19, 1955 through Feb. 14, 1956. A fall-off in
.

a

that

build¬

as

some

25,000.

the

Some

such

far-flung

in

at the same level

prior period, weekly car counts since mid-January
ebbing almost steadily reflecting the effects of layoffs
periods instituted by car makers to check ris¬

scheduled

become

some

volume

were

-

last week, the statistical agency
week's 132,889-unit tally. More

enterprise
with
more
than
40
plants located on five continents.

Employees

region failures

December.

the

been

;;;•?>

' nitrogen
Cyanamid

subsidiaries have

with the most noticeable rises in the Middle
Central and West North Central regions.

South

ing dealer stocks. However, improved sales have been reported
by most producers, "Ward's" noted, and manufacturers are also
probably stepping up activity in anticipation of a seasonal upturn.

Incorporated in 1907 to produce

its

rise in

January

and shortened work

If, however,
price-earnings ratio of 20 X is
applied, the market price becomes
100.
In 1954, Cyanamid sold as
high as 19 X earnings; and in
1952, as hieh as 20 X earnings.

and

of

Until

^

had

a

calcium

the

last.

market price is 78 V2.

fertilizer,

v

for

virtually all car-makers slated fiveday operations, "Ward's Automotive Reports," stated on Friday

share, the resultant'

a

principally

In the automotive industry last week United States car

price-earnings relationship.
If
the
present
price-earnings
ratio (15.7 X) is applied to esti¬
1956

West

ing continued to brighten

tor of

mated

that

as

And

company.

accounted

In the East South Central

Any discussion of the earnings
improvement potentialities of a
company invokes the question of
the market price potentialities of
the

trade

increase in January,

materials.

of

13%

rose

failures, being the highest in 12 months. Failures in manufactur¬
ing and wholesaling increased slightly in January.
Eight of the nine major geographic regions reported a failure

new

pounds,

stock

failures

-

Retail

thermoplastic

the

liability group

year ago.

fa¬

some

Industry

In the $25,000 to $100,over those of January a

January 1955, reaching a five year high.

company's old Gloucester, N. J., company and the biggest single
higher yield basis plant. The latter has been sold customer accounts for less than
than are the stocks of comparable at a profit to New Jersey Zinc 3%
of total sales.
Revenues of
competitors. (3) Because of the for delivery after capacity pro¬ foreign business (other than Can- excellent
basis
for
concluding duction has been reached at Sa¬ ada) in 1954 amounted to almost
that there will be continuing im¬ vannah, Ga., which presumably 15% of total'sales.
On the basis
provement in Cyanamid's earn¬ will be in early 1956.
of research expenditures as a
per¬
In 1955, as compared with 1954,
ings as a result of both sales
centage of sales volume, Cyana¬
growth and wider profit margins. consolidated sales increased 13% mid has been
leading the indus¬
American Cyanamid is unique to $451 million; pretax earnings
try. In 1954, outlays on research
among major chemical companies were up 46%; net income, 43%; totaled
$21.3 million and were
because of the extent to which and earnings per common share,
equal to 5.4% of net sales in that
it is engaged in what are gener¬ 38%. ($4.07 a share vs. $2.95 in
year.
ally
considered
as
the
fastest 1954.) Pretax earnings were equal
Of total consolidated sales, those
growing fields in the chemical to 16.5% of sales, vs. 12.8% in of the Lederle
Laboratories Divi¬
and ethical drug industries, 1954; and 8.6% of sales was car¬
sion, of which antibiotics repre¬
namely, antibiotics, plastics, agri¬ ried through to net income, vs. sent the
major portion, are now
cultural chemicals and synthetic 6.8% in 1954.
accounting for about 27%; the
fibers.
,
This record of improvement is
Organic Chemicals Division, about
Earnings' improvement result¬ rendered even more impressive
18%;
the
Industrial
Chemicals
ing from future sales growth is when it is realized that common
Division, about
15%;
and
the
strongly indicated by the trend share earnings in the initial nine
Plastics Division, about 10%.
of demand for Cyanamid's prod¬ months of last year would have
Notwithstanding the huge
ucts, plus the likelihood that these been around 35 cents a share
amount of additional capacity that ,•
products will continue to be aug¬ higher if it had not been for the
was added to the chemical indus-,
mented by new ones that will be loss incurred at the new Fortier,
created by
the company's vast La., petrochemical plant as a re¬ try by the latter's multi-billion
dollar
plant
expansion
during
research activities. Earnings' im¬ sult of starting-up expenses and
World War II, postwar demand
provement resulting from wider a four-weeks strike.
for
the
industry's products has
profit margins on certain of the
Announcement
was
recently
been so great that an estimated
company's operations is also an made of the pending acquisition
$10 billion has been spent on new
excellent likelihood. One impor¬ (by exchange
of stock) of the
tant reason for this view is the business and assets of the Formica facilities since 1945; and it is es¬
ratio and

The State of Trade and

duction
of
the
company's new
synthetic fiber (Creslan), and the
erection of a new plant at Brew¬
ster, Fla., for the production an¬
nually of 200,000 tons of triple
superphosphate. Another project

which

Co.,

months
lion

of

on

in
1955

sales

the

first

earned
of

$2.1

$26.9

nine
mil¬

million.

Formica produces laminated plas¬
used in kitchens, furniture,

tics

cabinets, and wall surfaces; also
plastic parts for aircraft, automo¬
biles, refrigerator equipment and
In

appraising Cyanamid's prof¬
its' potenital for 1956, it is be¬
lieved that, barring any general
setback in the
an

is

national economy,

estimate

year

of earnings for the
of around $5 a common share

in

line

with

amount represents

the

company's

post-1950 out¬

reflection of

In

scientific
been

miraculous

the

discoveries

characterizing

that

1939, its annual sales vol¬

has increased about ten times

—from

about

estimated

$157 million to
—
and

$1.5 billion

day's

medical

medicines

prescriptions
that

*

expanding

the

number

biotics

the

market

reduced

also

mon

share.

This

a

com¬

projection

is

Research is not

A

on

are

were

conversion of the convertible pre¬
ferred stocks, this figure would be

$4.60

an

ac¬

cording to one large producer of
medicinal chemicals, 90% of to¬

prospects for further earnings
improvement. On a basis of full

around

ethical

the

existent 15 years ago.

to

have

drug industry, the latter has been
recording a phenomenal growth.

for

car

output

Canada

was

halted

last

programmed

its

car

lines

for

week, however,

as

due

to

the

five

days

weather across the nation which has dented sales.

^eek

Estimated This

at 98.8% Capacity

premium pay for week-end work, if
met, would cost the steel industry 55 cents more per hour per
worker on continuous operations, "Steel" magazine declared on
Monday of this week.
The national metalworking weekly :said
that to meet the
premium pay demand revealed by the United Steelworkers in the
previous week means an average cost of slightly less than 55
cents per worker since not all steel mill operations are continuous.
Now, premiums are paid for sixth and seventh consecutive work¬
ing days.
I
"Steel" predicted that if any issue tangles steel labor negotia¬
tions this year, it will be the premium pay demand. Other major
demands to be made at talks beginning around June 1, will be,
higher wages, supplemental unemployment benefits and a full
union

The

demand

of

-

union shop.
*

*

Steel

-

prices will

go up

V

*

•

;

,

:

;

by more than the added cost ef labor,

Other steelmaking costs are going up too.
A 6%
freight rate increase became effective Mqr. 7, and the 1956

"Steel" noted.
rail

price for iron ore will be up 8% over last year's price when lake
shipments of it start between Apr. 10 and 15.
.
Prices are already trending upward. Since November when
.

"Steel" predicted an increase of

$12

a

ton

or

„

about 10% by next

July, prices have edged up 1.6%, mostly in the form of extras.

Steelmaking
than it

scrap

.

still is higher
"Steel's" price composite on steelmaking

has gone down in price, but

was

a
(year ago.
$48.50 a gross ton in the week ended Mar. 7, compared
high of $53.33 in mid-Januarv and. $37.33 a year ago.

scrap was

lays.

ume

of

Steel Output

timated that well over half of that

Since

electrical apparatus.

Canadian
Ford
severe

non¬

only constantly
of

a

ton.

.

While
asked

some

consumers,

that steel shipments

holds at $128.02 a net

*

notably the automobile industry, have
to them be delayed, other users are

taking any extra tonnage available.
"Steel" reported that mills will have less undelivered toTnage
on their order books at the start of the second quarter than at the

beginning of the first, but they will still have a carry-over. The
publication said that ingot production in the first 10 weeks of this
year averaged 2,438,800 net tons a week, a 16% gain over the
weekly 2,099,100 tons of the same period, last year, it concluded.
The

American

Iron

and

Steel

Institute

announced

that the

steelmaking
capacity for the entire industry will be at an average of 98.8%
of capacity for the week beginning March 12, 1956, equivalent to
2,433,000 tons of ingot and steel for castings as compared with
100% of capacity, and 2,462,000 tons (revised) a week ago.
operating rate of steel companies having 96.1% of the

v.

but

with

"Steel's" price composite on finished steel

anti¬
it

is

finding new uses for them.
specific example of how re¬

The industry's ingot

production rate for the-weeks in 1956 is

Volume 183

based

Number 5516...The Commercial and

annual capacity

on

For the

like week

duction 2,433,000 tons.

of 128,363,090 tons
month ago the

a

A

year

828,310 tons
~

of Jan.

as

based

are

>

pro-

The operating rate is not
annual capacity of

on

ulative interests and

The

41

125,-

Output Eases Further in Latest Week
"

a week

k
,

kwh. below that of the : ■
1,407,000,000 kwh.,or 14.5% above
the comparable 1955 week and
2,614,000,000 kwh. over the like ^
week in..1954.
>"
66,000,000

-

to

mount

There

news

over

concern

some

was

a

3%% Debentures

re¬

continued heavy hog

offset by

An

exchange would
small last week

Fluctuations in lard prices were

export

-

Coffee prices also moved slightly

earlier.

of the early easiness

V Some

was

re-

has been set up to

710,996;.

of
to maturity.
Net proceeds from the sale of

the tighthas been lessened

responding week in 1954.

U.

S.

Car

-

With

"Ward's

truck

Automotive

building 1.5%

\ ,Last

week the

Reports,"

creased inventories incident to

growth of the business as well as

industry assembled

units,

production
or

an

total

of

increase of

and

cars

2,302

week

the

week's

car

1,9C8

trucks

amounted

units above the

output, states "Ward's."
Last

an

In

22,129 trucks

cars

22,129

v:';.

ago.

year

a

"

:

:

trucks made

1,103 .trucks.

-y ;;

;

1955 week, ~9,707

\

■.

"

Commercial

industrial

and

failures

declined

268

in

and

229

which occurred in the

the

last week but exceeded the 217

242

a

vv
;.

somewhat

above

the

1955

failing businesses had liabilities in
pared with 25 in the previous week.
Wholesale Food Price
in

Movements

with advances

of

total

the

40.

food

items

slightly outweighing declines.

weejt

were

of

Higher in

drop of 9.3%.
wholesale cost

"
the

\

week

were

wheat,

down side

flour, rye, beef, bellies, butter, milk, coffee, cocoa
}-± The index represents the sum total of the price per pound

and

*

were

-

potatoes..

of 31

raw

is

tion

foodstuffs and meats in general use and its chief func¬

to show the

level.

■>'

yy: •" -y:

Showed Little

-v

y

Change the Past Week from that of the Prior period V
Price changes last

_

generally small and irregular.
The daily wholesale commodity price index, compifed by Dun & 1
Bradstreet, Inc., showed little change during the period, closing at
281.43

on

March

6

week

Trends in
row

range.

grains

Wheat

were

compared

as

273.33 on the like date

a

year

were

was

with 281.19

a

week earlier and

ago.

mixed with prices fluctuating in

a nar¬

firm at times reflecting a further decline

in stocks and the recurrence of wind storms in the Southwest.
A

bearish

influence

in regard to farm

Corn

in

wheat

was

the

legislative developments.

developed

strength

and

continue;! uncertainty
.r~~
*
:

Board

of

Trade

last

week

increased

sharply over^the previous

holiday week, although the average daily volume, totalling about
62,500,000 bushels, showed little'change for the week, and com¬
pared with 53,200,000 bushels in the same 1955 week'!*
The

domestic

flour

market

were

was

featured

by

moderate

ex¬

Aided by heavy

distribution of refined sugar during the first
market developed

two months ot the year, the domestic raw sugar




[

„

'

i.

'

,

^

D. C. Rose Opens

the

The collateral notes

be redeemed at optional
redemption prices ranging from
104% to par, plus accrued interest.
Missouri
ates

Pacific

RR.

approximately

The investment counsel

Brundage,
announced

firm of

Rose

apd

Story

has

that

Dwight C. Rose
from
the firm but

has

retired

will

continue
Mr.

sultant.

to serve
Rose

as

a

con¬

opened

has

a

oper¬

9,700

consulting office at 80 Park Ave.,

miles

Co.

New York.
Mr.

of

railway traversing Arkansas,
Colorado, Illinois, Kansas, Louisi¬

Rose

founded

the

Invest¬

ana,

and

President

by the holders of first mort¬
gage bonds of New Orleans, Texas
& Mexico Ry. Co., pursuant to
up

their

the

election

of

right

under

Missouri

provided
Ry.

Pacific

plan of reorganization.
Under the plan, holders have
until March 29, 1956, to exercise
their
right to
exchange
their
bonds for collateral trust notes or
to receive cash in

The

group

won

lieu thereof.

of

the award

underwriting op its bid of a
4%% coupon with total under¬
the

writing compensation of $184,000.
Re-offering, if any, will be after
March 29, 1956,

the date on which
be advised

the underwriters will
of the

amount of notes not so ex¬

changed and which they are

obli¬

to purchase. The issuance
of the notes is subject to authori¬

gated

of

.

y

...

■»

cific RR. Co. which are not taken

pect cf improvement in the near future.

"

and

A. M. Kidder & Co.
'

Association
of
America in 1937 and served as its

of

amount

zation by the Interstate

around

sinking fund

also may

Co. Inc. and
yesterday (March

mid-week in bookings of hard Tfinter wheat
bakery flours as the result of price concessions by~a number of
mills. Aside from this, business remained routine with little pros¬

pansion

M. Marks

Stein Bros. & Boyce;

Co.;

collateral
trusjt 4^% notes of Missouri Pa¬

recovered "from;~early

losses,
aided by moderate export business and some investment- buying.
Support was also attracted by expectations of a reduced acreage
and increasing scarcity of "free" corn.
Oats and rye, both weak¬
ened under profit taking coupled with less active., demand.
Total purchases of grain and soybean futures on the Chicago
,

associates

principal

Wholesale Commodity Price Index

and interest.

&

Stuart

the

For

notes will be redeemable at 100%

14) selected by competitive bid¬
ding, to purchase up to $23,000,000

general trend of food prices at* the wholesale
..

&

Counsel Office

'Awarded MOP Notes
■h Halsey,

Brothers;

curities Corp.; Laurence

period in 1955.

Halsey, Stuart Group

com,

oats, barley, hams, sugar, cottonseed oil, eggs and gteers.; On the ;>
'

by two stores.

come.

y y*

past

under¬

Goldman,

White, Weld & Co.; Hornblower &
Weeks; Paine, Webber, Jackson &
Curtis; Childress & Co.; R. S.
Dickson & Co. Inc.; Equitable Se¬

According to the Federal Reserve Board's index, department
City for the weekly period ended March

The wholesale food

the

of

members

Other

writing group include:
Sachs & Co.; Lehman

store sales in New York

mixed

1955

10,

Mississippi and Indiana.

in New York City the past week aided

the like period last year. In
the preceding week Feb. 25, 1956, an increase of 1% (revised) was
recorded. For the four weeks ending March 3, 1956, an increase of
3% was registered. For the period Jan. 1, 1956 to March 3, 1956
the index recorded a rise of 3% above that of the corresponding

as

lina, Kentucky, Georgia, Alabama,

shift in the timing of large-scale promo¬

a

well

as

the company.
the company
operated 394 retail stores in Flor¬
ida, South Carolina, North Caro¬

3, 1956, increased 7% above those of

price index, compiled by Dun & Bradstreet, Inc., fell to $5.94 on
March 6, from the year's high point of $5.95 recorded the week be¬
fore. The current index compares with $6.55 on the like date a
year ago, or a

to

under

Dec.

At

gain of 3% was registered above that of 1955.

tion

Mildly Lower

last

sold

above those of the like period of last year.
preceding week, Feb. 25, 1956, an increase of 4% was re¬
ported. For the four weeks ended March 3, 1956, an increase of
5% was recorded. For the period Jan. 1, 1956 to March 3, 1956 a

attributed entirely

y

Index Turns

individual

Twenty-three

and dis¬
items
trademarks and

brands

tributed

by heavy sales promotions registered a gain of about 10% over
corresponding period a year ago. Last week's increase was

of $100,000 as com-«

excess

items usually sold in the general
retail food business. Products sold

the

A slight decrease took place among small failures with liabilities
under $5,000, which totalled 42 as against 51 a week ago, but re¬
mained

ex¬

brands controlled by

Retail trade volume

ago.

year

and-carry food stores which deal
in all types of foods and other

In the

cor-

cash-

chain of retail self-service,

a

1956, increased 6%

-

more" dipped to 226
this size

of

Winn-Dixie Stores, Inc. operates

textile

by

apparel

Spring

100%.

sinking fund redemption is

include nationally known

-

Failures involving liabilities of $5,000 or

Optional redemption of the de¬
may be made at prices
ranging from 103%% to par. The

bentures

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended March 3,

-

respording weeks of 1955 and 1954. Compared with the pre-war
level, the toll was 6% below the 286 recorded in the similar week
Of 1939.
r<
from

reported

was

women's

to

■

City

ended March 8 from the post-war high of 293 in the pre¬
ceding week, according to Dun & Eradstreet, Inc. However, fail¬

remained above the 257

volume

for

ad¬

at the American Toy Fair in New York
exceeded that of last year and bookings were moderately
above those received at the similar 1955 event.

"

week

ures

in

re-orders

while

$5,408,000 for

improvements
stores and other facilities.

and

ditions

Buyer attendance

[

to

decrease

moderate

for the

calls

approximately

the week was 3'to

year ago.

a

A

and

cars

1956

company's budget for
expenditure of

The

areas.

previous week.

somewhat higher than that of the

:f wholesalers,

Business Failures Turn Slightly Lower

^

pany's chain of stores, warehouses
and other facilities both in terri¬
tories now served and in other

panded noticeably.

^

/.

was

week

.

the previous <
V';:.;V<

Canadian output last week was placed at 5,745 cars and 2,376
trucks. In the previous week Dominion plants built 7,885 cars and

2,005 trucks, and for the comparable

slight rise iri consumer buying

a

estimates by Dun & Brad¬
street, Inc. Regional estimates varied from the comparable 1955
levels by the following percentages: New England +5 to -f9;
East and Southwest +4 to +8; South and Middle West +3 to
-f-7; Northwest +2 to +6 and Pacific Coast 0 to +4%.
Wholesale orders were sustained at a high level last week and
-the dollar volume was somewhat above that of the comparable

output advanced above that of the previous

Last week the agency reported there were 25,037
States. This compared with 24,643 ip
and

and

7% higher than a year ago, according to

week's

assembled.

were

reported

previously served, and (b) the
expansion, improvement
modernization of the com¬

further

The total dollar volume of retail trade in

159,834

preceding

in the United
week

to

and truck output , by 394 vehicles during
corresponding week last year 171,346 cars and

the

not

Year Ago

\ Encouraged by Easter sales promotions, consumers boosted
their purchases of Spring merchandise. Volume in new and used

cars,

by

week.

a

J,

estimated

134,797 cars,
(revised) in the previous week. The past

compared with 132,889
week's

was

company's

South and North
Carolina and portions of Georgia

;

period ended on Wednesday of last week.

9,1956, according *
estimated to be 1.4% and •

the respective totals for the prior week.

over

be used for (a) carrying in¬
the

may

in the
Retail dollar volume
moderately exceeded that of the similar period last year.
Retailers

.?.l. the Previous Week
Car output for the latest week ended March

to

be

to

debentures

company's general funds and

operations into

Gain- of 1.4% Above

a

will

added

the

to the extension of the

Week—
Holding to Moderately Higher Levels Compared
Volume Little Changed from Previous

Trade

;

Output- Registered

retire 76%

the

earlier.

in the latest period, against 69,900 a week

-V

accrued

the debentures prior

.

Loadings for the week ended Mar. 3, 1956, totaled

-

cars, an increase of 57,421 cars, or 8.8% above the corresponding;
1955 week, and an increase of 120,420 cars, or 20.4% above the cor-

debentures

and

sinking fund, starting in 1957,

A

Loadings of revenue freight for the week ended Mar; 3, 1956, • f' by increasing repossessions from the 1955 loan. CCC loan entries
increased 23,978 cars or 3.5% above the
preceding, holiday week, 'i:: :* in the week ended Feb. 24 totalled 50,600 bales, against 68,500 the
the Association of American Railroads
u
week previous, while repayments were reported on 86,700 bales
reports.
;
r
-

The

100%

at

interest.

attributed to a bearish inter-

in "free" cotton, although such tightness

1976.

due

priced

are

Stores, Inc.
debentures, 3%%

fund

sinking
series

The market turned firmer in late dealings aided by
ness

Winn-Dixie

000,000

pretation of the new cotton export sales program as announced
by the U. S. Department of Agriculture last week.

Loadings Rose -3.5% in Latent <Week Over That of ir
Preceding Week ' ' V^->3 />

underwriting group headed

by Merrill Lynch, Pierce, Fenner
& Beane is offering today $10,-

—

;

Group

Offers Winn-Dixie

327,312 bags as

and totalled

ceipts, the latter greatly outnumbering the total of a year ago.
Hog prices declined slightly for the week with steers and lambs
closing slightly higher.
"
Domestic spot cotton prices* held in a fairly narrow range
during week and showed little net change for the period.

^ ^

u

.

favorable

with
i

•

output fell
it increased

week;

Merrill Lynch

of the year.

reflecting liquidation of spec¬
commission house selling. Warehouse

demand slackened.

as

be made soon.-

distributed by the electric light ;
industry for the week ended Saturday, March 10, 1956,
was estimated at
11,133,000,000 kwh., a decrease below the week #
ended March 3, 1956, according to fhe Edison Electric Institute. V
week's

to new highs

Prices rose

past week.

some

continued

cocoa

against 320,488
lower

The amount of electric energy

Car

of

stocks

:

and power

previous

the

in the most active trading week

Cocoa trended lower last week

1955.

1,

strength

season

port implying that an early revision of Brazilian

Electric

This

for the

*

9&8% and

comparable because capacity is higher than capacity in 1955.

percentage figures for 1955

considerable

of Jan. 1, 1956.

as

was

the actual weekly production

ago

placed at 2,273,000 tons or 94.2%.

was

rate

59

(1347)

Financial Chronicle

Commerce

Commission.

ing

contingent

fund

payable

The

by

notes

first

secured

are

mortgage

initially

in

bonds

amount equal to 125% of
Other members of the

an

cumulative sink¬

of $2,314,770 annually,
from available net in¬

f

1946.

until

He

is

the

Approach
Management" and
Application of Iny

author of "A Scientific
to

area.

Investment

"The Practical

Management."

vestment

notes.
under¬

Stearns

include:

Sloan, Rodetsky to
'
Form: NYSE Member

Bear,
&
Co. Inc.; Blair & Co. Inc.; Dick &
Melle-Smith;
Ladenburg,
ThalJERSEY CITY, N. J. — Sloan,
mann &
Co.; R. W. Pressprich &
Rodetsky & Co. will be formed
Co.; L. F. Rothschild & Co.; Salo¬ as of April 1st with offices at 26
mon
Bros. & Hutzler; Shields &
Journal Square. The firm, which
Co.; Wertheim & Co.; Bache & will hold membership in the New
Co.; Ball, Burge & Kraus; Baxter, York »Stock Exchange, will also
Williams & Co.; H. Hentz & Co.:
have an office at 25 Broad Street,
Shearson, Hammill & Co.; Stroul New York City. Partners will be
& Co. Inc.; Auchincloss, Parker
Douglass G. Sloan, Bernard Rodet¬
& Redpath; Freeman & Co.; Ira
sky, Marvin Kleinzahler, and John
Haupt & Co.; Johnston, Lemon & Y. G. Walker, Jr., member of the
Co.; Wm. E. Pollock & Co., Inc.;
Exchange, general partners, and

writing

group

Co.;

&

A.

Brothers

Stern

American

&

G.

Becker

Co.;

Corp.; Adams &

Swiss

Peck;

McMaster Hutchinson & Co.; Mul-

The notes will have the benefit
a

Missouri, Nebraska, Oklahoma
Texas, passing through and
serving principal cities in that

Counsel

ment

laney,
laus

and

Jerome

and

Kaplan, Cyril

Morris

W^lls & Co.; Stifel, Nico- partners.

Mr.

J.

J. Galvin,

Janoff

Sloan

limited

and

Thomas & Co.; Rodetsky are officers of First
Jersey-Sloan & Sloan, Inc.
F. S. Yantis & Co. Inc.
&

Co.

Inc.;

Mr.
New

60

(1348)
rv

•'

The Commercial and Financial
Chronicle. ;.
i
*
'
•-' *
v-'• ''T': '
•'■a

'♦

Inc., Grand Junction, Colo.

ivianufacturing

Co.,

Wasatch Corp. on the
following basis: Four shares
of Atlas
common; 2.4 shares for one share of
Airfleets common; one share for each share of
Albu¬

preferred;

shares of

Atlas

Aircraft Danger Light Corp.t
17 (letter of notification) 10,000 shares of common
stock (par $1).
Price — $11 per share. Proceeds—For
v

development of

various

Minn.

Underwriter—Craig-Hallum,

Minn.
'

-

Rand

models

Tower,

Inc.,

of

Feb.

17

Underwriter—To

be

-Union Securities Corp. and Drexel & Co.
First Boston Corp.; Morgan Stanley &

(jointly); The
Co.; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly).
tBids—Expected to be received up to 11 a.m. (EST) on
March 15 at office of Southern

Services, Inc., Room 1600,
Ave., New York 17, N. Y.
Y :

★ Alpha Beta Food Markets, Inc., La
Habra, Calif.
March 12 filed 100,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—For ex¬

Francisco, Calif.

Underwriter—Dean Witter & Co., San

★

American Alloys Corp. (3/19-23)
Feb. 24 filed 130,000 shares of 6% cumulative
convertible
preferred stock (par $5). Price — To be supplied
amendment.

Proceeds

To

—

retire

bank

by
and mortgage

indebtedness of $142,000; to construct additional furnace
facilities; and for working capital and general corporate
Underwriter—S. D. Fuller & Co., New York.
it American Employees Life Insurance Co.
March 8 (letter of
notification) 15,000 shares of common
capital stock (par $10). Price—$20 per share. Proceeds
purposes.

.—For expenses

Office

pany.

incident to operating an insurance com¬
5252 N. Central
Ave., Phoenix, Ariz.

—

•

American Frontier Corp.,

Price —$10

other

funds, to

stock

Memphis, Tenn.
common

(par $1) of American Frontier Life Insurance Co.

American Insurers' Development Co.
10 filed 400,000 shares of common
stock

$2.50 per share.
business.
Office—
—

Proceeds

—

(par $1).

To expand

service

Birmingham, Ala.
Underwriter
Odess, Martin & Herzberg, Inc., Birmingham, Ala.

capital

and

general

corporate

Office—1132

purposes.

Healy Bldg., Atlanta, Ga. Underwriter—
Franklin Securities
Co., same city.
it American Pipe & Construction
Co.,
-

Southgate, Calif.
Feb.

27

(letter of notification) 3,750 shares of common
(par $1) to be offered to employees under an em¬
ployees' stock option plan. Price—$18
stock

per

ceeds—For working capital.

Office

—

Underwriter—None.
Associated
Feb.

28

fund

(letter

share.

due

Feb.

1,

1966.

.

Fergus Falls, Minn.

Price—At

par

to

be

ciated

I

issued pursuant
Oil

Co.,

interest.

and for gen¬

9,890,095 shares

this-corporation

(in

Underwriter—W. R. Olson Co..

Atlas Corp.
Feb. 28 filed

of

are

&

to

an

of common stock

Co., Chicago, 111. Offering—Expected in

stock,

to

be

offered

in

agreement of

merger

with

Airfleets, Inc., Albuquerque Asso¬
Pictures Corp., San
Diego Corp.

it Cities

share).

per

Proceeds

wood, N. J.
York.

—

stock (par $1).
(expected at $10

—

Office—Engie-*
Lee Higginson Corp., New

Offering—Expected within the

next three weeks.

B. S. F. Co.,
Birdsboro, Pa.
*
Dec. 30 filed 92,636 shares of
capital stock
be offered for

subscription by
Jan. 20, 1956, at the rate of one
shares held.
ceeds—For
ment

:

(par $1) to

number of such shares which
may be
the Plan.

Underwriter—None.

Office—1424

Pearl

Street, Boulder,
Underwriter—Lamey & Co., Boulder, Colo.

Colo.

Blue Lizard
17

filed

Mines, Inc.

$900,000

debentures due 1976.

of

8%

convertible

subordinated

Proceeds—To make additional cash
payment
contracted and

for mining expenses.
Underwriter—None.

it Bonham

Industrial

on purchase
Office—Salt Lake

Foundation, Inc.,

Bonham, Texas
27

(letter

stock

rate

of

(par

on#

Office—Montrose, Colo. Underwriter*—

purposes.

General Investing

Corp., New York: and Shaiman & Co.,
Offering—Date indefinite.

Denver, Colo.

it Colorado Central Power Co.
Feb.

24

(letter of notification) 9,851 shares of common
(par $5) being offered for subscription by com¬

stock

March 27.

Price—$26.50

per

17

on

the basis of

one

held; rights to expire

share.

Proceeds—For

struction program. Office—3470 South

on

con¬

Broadway, Engle-

Underwriter—None.

it Columbia Gas System, Inc. (4/10)
March 14 filed $40,000,000 of 25-year
debentures, series
F, due 1981. Proceeds—To repay bank loans and for new
construction.

Underwriter—To

be determined by com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. Bids—Tentatively expected

petitive bidding.
to be received

on

April 10.

it Columbus & Southern Ohio Electric Co.

Price—100% of principal amount.

City, Utah.

common

share. Proceeds—For explora¬
tion and development expenses and for general
corpo¬

wood, Colo.

(letter of notification) 9,300,000 shares of com¬
stock (par one cent).
Price—Three cents per share.
Proceeds—To be used for
exploratory work on mining
properties.

per

share for each 24 shares

mon

mineral

shares of

Price—40 cents

new

Price—To be supplied by amendment. Pro¬
Business—A registered invest¬

company.

Uranium, Inc.

record

investment.

purchased under

//:Y.

share for each two

it Big Horn fountain Gold & Uranium Co.

Jan.

filed $4,950,000 of
participations in company's
Employees Thrift Plan, together with 80,000 shares of
common
stock
(par $10),. representing the estimated

stockholders of record Feb.

of

future.

March 9

mon

stockholders

new

near

Co.

cent).

For investment.

Underwriter

^

Service

Nov. 9 filed 2,500,000

Fund,

17

March
1986.

filed

13

(4/3)

$12,000,000 of first mortgage bonds due

Proceeds—To repaj/ bank loans and for construc¬

tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lee Higginson Corp.; Blair & Co. Incorporated and
Baxter, Williams & Co. (jointly); Salomon Bros. & Hutzler; White, Weld & Co.; Lehman Brothers; Dillon, Read
& Co. Inc. and The Ohio Co.

notification) 6,587 shares of capital
($5 per share). Proceeds—To ac¬
building site and construct a building. Office—
Bonham, Tex. Underwriter—None.
/

(jointly); Union Securities
Corp. and Glore, Forgan & Co. (jointly). Bids—To be
opened at 11 a.m. (EST) on April 3 at City Bank Farm¬
ers Trust Co., 2 Wall St., New
York, N. Y.

it Briel

it Comfort-Craft, Inc., Miami, Fla.
1
(letter of notification) $50,000 of debenture
bonds (in units of $100 each). Address—c/o Ira Eason,
President, 3500 N. W. 54th St., Miami, Fla. Underwriter

quire

Price—At

par

a

Industries, Inc., Jeffersonville, Ind.
(letter of notification) 2,562 shares of common
stock, class A, and 400 shares of common
stock, class B.
Price—At par ($25 per share).
Proceeds—To promote
company's business.
Office—Jeffersonville, Ind. Under¬
writer—None.
•

Price—$38

tional

retail

share.

per

stores.

common

Proceeds—To

Business

stock (par

open

Supermarket
Office—5301 Northwest 37th Ave.. Miami,
Fla.
writer—None. Statement effective March 7.
•

Budd

Feb.

—

addi¬

concern.

Under¬

Feb.

Delhi

Petroleum

Ltd.

(3/20)

28

filed 698,585 shares of
capital stock (par 10
to be offered for subscription by stockholders
of
record March
5, 1956, at the rate of one new share for
each five shares held
(with an

oversubscription priv¬
ilege; rights to expire about April 4. Price—To be
sup¬
plied by amendment. Proceeds—For advances to Cana¬

Ltd.,

a

wholly-owned subsidiary, who will

the funds to repay bank loans of

general corporate purposes.
thers and Allen &

$1,350,000, and for
Underwriters—Lehman Bro¬

Co., both of New York.

Carolina
Feb.

1

Telephone & Telegraph Co.
filed 66,640 shares of con.mon stock

being offered for subscription by
of record

Feb.

(par $100)

stockholders

common

be

offered

115,276 shares of common stock (par $10)
in exchange for common stock of The

Mengel Co. at the rate of
two

one

Container share for each

Mengel

shares. The offer is to become effective
Container's holdings of Mengel stock has been
increased to at least 90% of the Mengel stock outstand¬
ing.
when

Co., Philadelphia, Pa.

cents)

RKO

it Container Corp. of America

Cooperative Grange
Exchange, Inc.

20

filed 395,096 shares of common stock
(par $5)
being offered for subscription by commoi -stockholders
of record as of March
12, 1956 in the ratio of one new
share Tor each 10 shares
held; rights to subscribe on
March 27. Price—$19
per share. Proceeds—For general
corporate purposes.
Underwriter—Blyth & Co., Inc.,
New York.

use

—None.

to

Nov. 23 filed 37,000 shares of class A

$25).

March

March 9 filed

B-Thrifty, Inc., Miami, Fla.

dian Delhi Oil

(par $1)

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 &

22,500

Colohoma

Chemical

(4/2-6)
filed 400,000 shares of
capital
Price—To be supplied by amendment

Feb.

Canadian

sinking

denominations of $1,000 each),
plus accrued
Proceeds—To be used to modernize a store
eral corporate
purposes.

Pro¬

Southgate, Calif.

Drugs, Inc., Bemidji, Mini*.
of notification) $150,000 of
6%

debentures,

share and 8,800 shares

per

Francisco and New York
City.

detachable

of

.

—

★ American Mica Processing Co.,
Inc, Atlanta, Ga.
Feb. 29 (letter of
notification) 171,500 shares of common
stock (par 10
cents). Price—$1 per share.
Proceeds—

working

Vegas, Nev.

March 2

<

Feb.

For

Las

(4/5)

Century Acceptance Corp.,,
Nov. 7 filed $750,000 of
participating junior subordi¬
nated sinking fund 6% debentures due Nov.
1,1970 (with

Co., of Las Vegas, Nev.

stock.

stock (par

per share.
Proceeds — Together with
purchase 1,000,000 shares of .common

Underwriter—None.

Price

Co.,

Inc.

Feb.

Feb. 15 filed 175,000 shares of class A

$1).

Investment

Atomic, Electronic

Underwriter—None.
.

ISSUE

REVISED

•

of

Feb. 23

;

>

$50

ment

determined

by
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.,

pansion program.

shares

Tremonton, Utah, and M. D.
Close Mortgage & Loan Co. and Jack
Hemingway Invest¬

-competitive bidding.

250 Park

convertible into

are

Rex Laub and Max
Laub, of

mortgage bonds due
Proceeds—To repay bank loans and for

construction.

new

stock

common

exchange for preferred stock. Proceeds—For payment of
bank loans, and for
capital and surplus. Underwriters—

•

1986.

San

of

for public sale

at

the

Minneapolis,
Minneapolis,

(3/15)
$14,000,000 of first

filed

share

Jan. 9 filed 20,800 shares of class B
common voting
of which
12,000 shares are to be offered

Alabama Power Co.

March 1,

each

for

preferred stock.

Feb.

Office —1755

shares

000 shares of 5%

York.

and

1.3

The

common.

—

Light.

and

Wasatch;
registration statement also covers 1,250,cumulative preferred stock (par $20)
which will become issuable
upon and to the extent that

Inc.

(letter of notification) 8,260 shares of common
(par $1). Price—To be supplied by amendment.
Proceeds
For general corporate purposes. Office —
Corry, Pa. Underwriter—A. G. Becker & Co. Inc., New

production

• ITEMS

March 13 filed 500,000 shares of common stock
(par
$10). Price—To be supplied by amendment. Proceeds—
For plant expenditures.
Underwriter—Blyth & Co., Inc.,

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

23

Atkins

ADDITIONS

SINCE PREVIOUS

* Caterpillar Tractor Co.

one

querque

stock

■

'<

and

for

Center, Grand Junction, Colo. Underwriter—Ralph M.
Davis & Co., Grand Junction, Colo.
'
Supply

'

f

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium

Aero

;

:

Feb. 23

Feb.

-•

it INDICATES

Securities Now
Abundant Uranium,

Thursday, March 15, 1956

•

League

Federation

r

i

Feb.

15 filed $2,000,000 of 4% subordinated debentures;
7,500 shares of 4% cumulative preferred stock (par $100)
and 100,000 shares of common stock.
Price—Of deben¬
tures, 100% of principal amount; of preferred, $100 per
share; and of common, $5 per share.
Proceeds—To fi¬
nance construction of a new petroleum terminal at Al¬
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.
OfficeIthaca, N. Y. Underwriter—None.

Copper Corp., Phoenix, Ariz.
(letter of notification) 1,200,000 shares of com¬
mon stock.
Price—At par (25 cents per share). Proceed*
—For expenses incident to mining operations. Addres*
—P. O. Box 175, Phoenix, Ariz. Underwriter—Keim &
Co., Denver, Colo.
Jan. 27

it Crater Lake Mining & Milling Co., Inc.

for each five shares

March 8 (letter of notification) 575,000 shares of common
stock. Price—50 cents per share. Proceeds—For mining

Southern

expenses.

14, 1956 in the ratio of two

new

shares

held; rights to expire on March 23.
Telephone & Telegraph Co., owner of
31.67% of the outstanding stock, sold its
52,762 rights
(36,162 at competitive bidding to R. S. Dickson & Co.
who offered the 14,464 shares
represented thereby to the
public on Feb. 23, at $145 per share; and 16,600 rights
were placed
privately). Price—$125 per share to stock¬
holders.

Bell

Proceeds—To

reduce

bank loans.

Underwriter

—None.

Boston

Philadelphia '

Pittsburgh

it Carpenter Taper Co., Omaha, Neb.
(letter of notification) 10,000 shares of common
(par $1) to be offered only to group of officers
and employees approved
by the president. Price—$28.50

San Francisco

Chicago

Cleveland

stock

share. Proceeds
Office—2402 Douglas
None.
per

Private Wires




to

all

offices

—

.....

For general

St.,

corporate

Omaha, Neb.

purposes.

Underwriter—

—

1902

East

Underwriter

—

San Rafael, Colorado
Skyline Securities, Inc.,

Crown

City Plating Co., Pasadena, Calif. (letter of notification) 14,999 shares of common
stock (par $10) of which 2,499 shares are to be offered

Feb.

to

.

3

officers

ceeds—For

March 1

New York

Office

Springs, Colo.
Denver, Colo.

employees. Price—$20
working capital and other

Office—165" South

poses,

Calif.

and

16

„1

Co.

of

Ave., Pasadena,
Pasadena, Calif.

America

filed

1 A

S+eel

Pro¬
pur¬

Oakes

Underwriter—Pasadena Corp.,

Crucible

Feb.

Fair

share.

corporate

per

164,117 shares of common stock (par $25)
being offered for subscription by common stockholders
of record March 7, 1956, at the rate of one new share for
"

"

Volume 183

Price—$40
-

Number 5516

.

Proceeds—For modernization and

share.

per

The Commercial and Financial Chronicle

...

program
and general corporate: purposes.
Underwriter—The First Boston Corp., New York.

expansion
Cuba

Nov.

21

Public

by

(Republic of)
filed $2,000,000

Nov. 28
stock

Courts and

Veterans,

be

Price—To

1S83.

supplied

Romenpower Electra
Underwriter—Allen & Co., New York.

Construction Co.
Dennis Run

4%

of

Proceeds

amendment.

To

—

Price—$6.50

$1).

debentures, to mature $2,500 annually, and $25,000
to be

At

paid

later than 10

no

Proceeds—To

March

1

Daniel L.

Office—40 National Transit Bldg., Oil City, Pa.

Under¬

stockholder.

debts;

for

and

writer—Grover O'Neill & Co., New York.

15

(Thursday)

ISSUE

(Bids

common

Proceeds

—

To

Underwriter

Va.

—

Scott,

•

Central

Illinois

16

March

(Wednesday)

Light Co

Common

(Offering to stockholders—to be underwritten by Union

(S.

Murdock

R.

Duquesne Light Co

Livingstone, Crouse & Co.)

March

19

(S.

Co.)

(Blyth

Burge

Kraus;

&

United

$650,003

States

(Offering

D.

George

Bonbright

B

and Foster

Marshall)

&

Paso

&

Co.)

(Offering

to

11:30

Preferred

Rokeach

to

8:30

Debentures

Whirlpool-Seeger Corp.
(Goldman,

Sachs

and Fulton, Reid & Co.)

& Co.

Whirlpool-Seeger

Corp.

$30,000,000

Paper

Common
100,430

Co.;

&

Merrill

and

March 22

(Offering

Stanley

to

Co.

Bonds

invited)

$10,000,000

(Tuesday)

(Bids

tc

be

$25,000,000

(Bids to

invited)

April 18
New

$9,000,000

Co

be invited)

Bonds

$40,000,000

(Wednesday)

England Electric System

Common

(Offering to stockholders—Bids to be invited)

April 19

j

834,976 sharea

(Thursday)

Portland Gas & Coke Co

(Thursday)

(Bids

be

to

-Bonds

invited)

Invited)

be

April 20

$4,500,000

Common

Co

General

Telephone

(Offering

$16,500,000

(Friday)
Debentures

Corp

stockholders—to

to

Webber,

Jackson

&

be

underwritten

Curtis)

underwritten
w. E. Hutton & Co.) 69,670 shares

(Offering

to

stockholders—to

Tide Water Associated
(Eastman,

Dillon

&

Co.;

Oil

by

be

by Paine,

$55,000,000

Loeb

&

Co.;

and Lehman

(Glore,

Forgan

&

Preferred

Co.)

(Bids

be

to

Bonds

Invited)

$30,000,000

March 26

.

(Monday)

(Offering

to

stockholders—no
''

___Notes & Common

April 26

General
March

27

(Tuesday)

Ripley

Co.

&

Inc.)

to

300,000 shares

National Finance Co., Inc

Preferred

underwriting)

Transportation

stockholders—to

Kuhn,

Class A

McGregor-Doniger, Inc.
(Harriraan

American

(Offering

Common
463,641

(Thursday)'

(White, Weld & Co.) $3,505,000 notes and 70,100 shares of stock

Loeb &

Co.)

be

shares

*

Corp.__Debens.

underwritten

by

$25,000,000

Long Island Lighting Co

Preferred

(Blyth & Co., Inc.; The First Boston Corp.;
& Co.) $12,000,000

and W. C. Langley

1986.

(Bids

11

May 1

Bonds

(Bids

Pennsylvania Salt Manufacturing Co._-Debentures
(Kidder,

Peabody

March

28

11

EST)

(Golkin

March

Co.)

30

$12,000,000

to

shares

Higginson Corp.)

April 3
11

a.m.

11:30




a.m.

EST)

General brokerage

—

business.

Office

—

Power

165

Indus¬
*

&

Light Co. (4/3)
filed $15,000,000 of first
mortgage bonds due

2

Underwriter

Fort Pitt Packaging

International, Inc.

60,000 shares of five selling stockholders. Trice—$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.
Frontier
2

Assurance

(letter of

Co.,

Phoenix,

notification)

Ariz.
2,000 shares of

class

B

voting common stock (par $25), being offered for sub¬
scription by holders of class A common stock on a 2per

basis from Jan.

share.

15

to

April 1, 1956.

Price—$36.50

Proceeds—For capital and surplus.

Office—

Ave., Phoenix, Ariz. Underwriter—None.

it Garner Aluminum Corp., Washington, D. C.
(letter of notification) 3,000,000 shares of 4%
preferred stock (par one cent). Price—10 cents per share.

March 7

Proceeds

—
To be used to purchase raw materials and
office equipment and for working
capital. Office—318330-15th St., S. E., Washington, D. C.
Underwriter—

None.
Gas

Hills Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com¬
stock (par five cents). Price — 25 cents per share.
4

Proceeds—For

expenses

incident

to

mining operations.
Gordon

General
18

Uranium

Corp. (N. J.), New York
400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—For plant facilContinued on page 62
filed

(Bids

(Wednesday)

Gas

to be

Bonds

Co

invited)

$40,000,000

(Wednesday)

be

Bonds
invited) $20,000,000

(Bids

to be

(Tuesday)

invited)

can

increase the sale of your securities among

midwest investors when you offer them in the

of the

Bonds
$20,000,000

and

Chicago and

Chicago Tribune.

general public than read

your

any

other medium in this rich

growing investment market.

For facts that will give your

(Monday)

Tampa Electric Co

Makes Sales Faster!
You

Thru the Tribune you reach more professional buyers and more

advertising counsel

or

j

advertising added selling

power,

Bonds

October 2

(Tuesday)

Columbia Gas System, Inc.—
(Bids to be invited)

Debentures
$30,000,000

GUjitcrgcr {Tribune
THE

WORLD'S

call

nearest Tribune representative today.

(Bids to be invited) $10,000,000

Bonds

Bonds
$15,000,000

(Bids to

October 1

$12,000,000

Florida Power & Light Co
(Bids

Com.

(Tuesday)
EST)

California

September 25

400,000 shares

Columbus & Southern Ohio Electric Co
(Bids

Corp.

Proceeds—For construction program.
determined by competitive

Common

Virginia Electric & Power Co

(Monday)

Atomic, Electronic & Chemical Fund, Inc
(Lee

share for

be

cents).

(Thursday)

Florida Power Corp

Common
40,000

new

June 30 filed 300,000 shares of common stock
(par 10*)#
of which 250,000 shares of for account of
company and

Jan.

$30,000,000

Co

July 11

(Friday)

stockholders)

April 2

Bonds

May 23
Southern

$1,675,000

Trust Co

(Offering

one

Office—Kemmerer, Wyo. Underwriter—Philip
& Co., Inc., New York 6, N. Y.
o" jy

(Monday)

to be invited)

of

(Offering to stockholders—no underwriter) 367,478 shares

Debentures & Preferred
&

$2,000,000

Co

May 10
Duke Power

Bonds
a.m.

EST)

a.m.

Debs. & Com.

(Thursday)

Stubnitz Greene Corp

New England

Power

(Bids

Co

Power

11

the basis

bidding. Probable
Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Blyth & Co., Inc., and Lehman
Brothers (jointly); White, Weld &
Co.; The First Bos¬
ton Corp.
Bids—Expected to be received up to 11:30
a.m.
(EST) on April 3.

mon

Preferred

May 7
Duke

Dillon & Co.) $20,500,000 debetnures and
615,000 shares of stock

(Bids

1

$15,000,000

Co., Ltd

March 29

Georgia

Co.)

(Wednesday)

Westcoast Transmission
(Eastman,

&

(Tuesday)

El Paso Electric Co

$55,000,000

EST)

a.m.

on

bidders:

Jan.

(Baker, Simonds & Co,) $550,000

New York Telephone Co

20

Broadway, New York, N. Y. Underwriter—Basic
tries Corp., 31 State St.,
Boston, Mass.

4143 N. 19th

Wisconsin Electric Power Co

Spokane Natural Gas Co.

March

Lewis

Business

for-1

$10,000,000

Wisconsin Electric Power Co

$100,000,000

Brothers)

(Tuesday)

Anderson-Prichard Oil Corp.,

Debentures

Co

Kuhn,

April 24

(3/21)
100,430 shares of common stock (par $1)
subscription by common stockholders

(letter of notification) 60,000 shares of 7% pre¬
ferred stock. Price—At par ($5
per share). Proceeds—
For working capital and
general corporate purposes.

Dec.

Common

Rotary Electric Steel Co

five

Underwriter—Goldman, Sachs & Co., New York.

—To

Preferred

Edison

each

a

held; rights to expire on April 4. PriceTo be supplied by amendment
(not less than $15 nor
more than $18 per
share). Proceeds—For working cap¬

March

Bonds

:

be invited)

California

by Drex^l & Co.;
Pierce, Fenner &

be underwritten by Morgan
Coggeshall & Hicks) 189,844 shares

and

Preferred

Pennsylvania Electric Co
i

stockholders—to

to

$40,000,000

Equip. Trust Ctfs.

Telephone

&

be

record

Florida

$8,310,000

Baltimore & Ohio RR
(Bids

to

for

over

March 1

.—Debentures

and The First Boston Corp.) $12,000,000

April 17

Southern

-Equip. Trust Ctfs.
(Bids noon EST)

Peninsular

n

Lynch,

Wabash RR
*'

(Bids

share

offered for

First

(Tuesday)

invited)

be

ital.

Kentucky Utilities Co

by
,

$98,685,100

Beane)
■

(Blyth & Co., Inc.

.Debentures

Co

Barney

be

(Bids to

underwritten
shares

b*

(Offering to stockholders—to be under writ
Smith,

to

one

each 20 shares

Common

100,000 shares

Pennsylvania Electric Co

Goldman,

Scott

(Bids

of

Family Finance Corp.
Feb. 29 filed
to

(Monday)

April 10

(Wednesday)

stockholders—to
Sachs & Co.)

to

Stone

(Gffering to stockholders—to be underwritten by Dean
Witter & Co.; Blyth & Co., Inc.; and The First Boston

150,003 shares

Family Finance Corp
(Offering

may

56,025

x

Corp.)

basis

45-day pe¬
riod. Price
$3.60 per share. Proceeds — For working
capital. Office—26 Journal Square, Jersey City 6, N. J.

of

Common

?

(Goldman, Sachs & Co. and Fulton, Reid & Co.)

March 21

be
shares

Manager

Corp.)

the

on

held; rights to be exercisable

Underwriter—None.

Kansas City Power & Light Co

400,000 shares

Co.)

shares

Common

Securities

(letter of notification) 72,165 shares of common
(par $1.25) to be offered for subscription by

—

(Friday)

April 9

Common

(I.) & Sons, Inc
(Jay W. Kaufmann &

by

shares

Columbia Gas System, Inc

$25,000,000

PST)

a.m.

underwritten

123,046

1

stock

stockholders

Common
be

stockholders—Dealer

Bonds

Pacific Gas & Electric Co
(Bids

shares

$10,000,000

EST)

a.m.

500,000

Co

Bonds

Narragansett Electric Co
11

Inc.)

Wells Fargo Bank
;

(Bids

Co.,

Common

$7,000,000

EST)

a.m.

Eagle Fire Insurance Co.
Feb.

Common

stockholders—to

Webster

shares

698,585

Louisiana Power & Light Co
(Bids

&

Electric

(Offering to stockholders—to be underwritten by Lehman
Allen

shares

(Thursday)

April 6

(Tuesday)

Canadian Delhi Petroleum, Ltd
and

345,760

Envelope Co
to

$300,000

&

Brothers

Common

„

EST)

p.m.

Ball,

Co.;

&

El
March 20

$20,000,000

Hayden, Stone & Co.)

Common

Dominiik;

&

3

(April 5

Society, Inc

(Dominick

EST)

a.m.

Caterpillar Tractor Co

(Monday)
&

(Bids

Corp., North Bergen, N. J.

stock,
prior to March
15, 1966) being, offered for subscription by common
stockholders of record March 5, 1956, at the rate of one
preferred share for each six common shares held (with
an oversubscription
privilege); rights to expire on March
20.
Price—$25 per share. Proceeds—For expansion of
plant and equipment and of distributing and research
facilities; and for working capital. Underwriter—Auchincloss, Parker & Redpath, {Washington, D. C.
^

Co.)

Preferred

Fuller

D.

&

Bonds

11

Brewing Co

Common

American Alloys Corp
Grolier

Harvard

$300,000

and Bullington-Schas
,50,000 shares

Securities Corp.

1

(Bids

Common

Acceptance Corp

(Equitable

;

(Friday)

Co

(A. J.)

Duro-Test

Feb. 8 filed 42,758 shares of cumulative
preferred
series of 1956 ($25 par-convertible on or

Securities Corp.) approx. $5,000,000
Marshall

(4/4)

1 filed $20,000,000 of first mortgage bonds due
April 1, 1986.
Proceeds — For construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld
& Co.; Kuhn, Loeb & Co., Union Securities
Corp. and
A. C. Allyn & Co., Inc.
(jointly); Drexel & Co. and
Equitable Securities Corp. (jointly); Glore, Forgan &

Co.; Harriman Ripley & Co. Inc.; The First Boston Corp.
Bids—Expected to be received up to 11 a.m. (EST) on
April 4 at Room 1540, 15 Broad St., New York, N. Y.

;

,

CALENDAR

EST) $14,000,000

a.m.

McKeever & Associates, Oklahoma City, Okla.

Duquesne Light Co.

Ga.

share.

per

Office—Rome, Ga.

April 4
Bonds

ll

O

Lombard, Youngstown, Ohio, who is the selling

<

Alabama Power Co
;

Price—$3.50

Horner & Mason, Inc., Lynchburg,

NEW
March

Rome,

(letter of notification) 2,000 shares of

stock.(par $1).

capital.

and

loans

bank

Price—

Office—52

\

\

stock

(par 10
cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter — James C.

St., N. W., Washington, D. C. Underwriter—None.

working

pay

capital.

of

thereof

after issuance.

years

Proceeds—For working

par.

it Dixie Aluminum Corp.,

share.

per

registered debentures with the principal

Doctors Oil Corp., Carrollton, Tex.
23 filed 500,000 shares of common

Feb.

61

March

Corp., Oil City, Pa.

(letter of notification) 46,000 shares of common

(par

it District Wholesale Drug Corp. of Washington
March 2.(letter of notification)*$25,000 Of 8% registered

8%%

due

bonds

Works

(1349)

GREATEST

NEWSPAPE R

,

Chronicle... Thursday, March 15, 1956

The Commercial and Financial
62

(1350)

Continued from page

in denominations of

61

East First St.,

ities, survey of property and underground development.
Underwriter—None. Maurice Schack, Middletown, N. Y.,
if Georgia Casualty & Surety Co., Atlanta,
March 2 (letter of notification) 5,000 shares of

Ga.
common

(par

payable, construction of plant and
Address—P. O. Box 318, Henderson,

Underwriter—None.

,

Dawn Uranium Corp.,

Golden

Household Gas Service, Inc.
Jan. 6 (letter of

ceeds

working capital.
Office — Clinton, N. Y.
writer—Mohawk Valley Investing Co., Utica, N.

for

Idaho-Alta Metals Corp.

Buena Vista, Colo.

Securities Co., Provo,
Good Luck Glove
Jan.

30

Underwriter

For mining expenses.

Utah.

Bel-Air

—
•

.

,

- ■

Co., Carbondale, III.

$550,000 of 6% JO-year convertible sub¬
debentures due April 1, 1966.
Price—100%

filed

ordinated

principal amount. Proceeds—To repurchase stock of
company held by C. T. Houghten. Underwriter—Edward !
D. Jones & Co., St. Louis, Mo.

of

Grammes

(L. F.)

& Sons, Inc., Allentown,

Pa.

1,279 shares of common
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

(letter of notification)

stock (no par) to be

if Granco Products, Inc.
March 5 (letter of notification) 60,000

shares of common

cents). Price—$1.50 per share. Proceeds—
capital. Business — Electronic products.
Office—36-07 20th Ave., Long Island City, N. Y. Under¬

stock (par 50
For working

writer—None.

shares of common
stock (par 50 cents). Price—At market (approximately
$2 per share). Proceeds—To Allan Easton, Vice-Presi¬
dent, who is the selling stockholder. Underwriter—None.
if Grand Canyon Uranium Co., Salt Lake City, Utah
Feb. 29 (letter cf notification) 9,000,000 shares of com¬
mon
stock.
Price—At par (two cents per share). Pro¬
ceeds—For mining expenses. Office — 156 East Third

•

Grolier

Underwriter

Society,

Inc.

—

ceeds—For

(3/19-23)

(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¬

Underwriters — Dominick &
Dominick, New York; George D. B. Bonbright & Co.,
Rochester, N. Y.; Ball, Burge & Kraus, Cleveland, O.;
corporate

Foster &

and

purposes.

itock

Hammermill Paper Co., Erie, Pa.

stock (par $2.50)
capital stock
of WatervMet
26 shares of
Hammermill common stock for each 25 shares of Watervliet stock. More than the required 128,000 shares (80%
of outstanding Watervliet stock) have been deposited for
exchange. The offer has been extended until March 19.

Dec. 20 filed 166,400 shares of common

in exchange for shares of
Paper Co. in the ratio of

Underwriter—None.
Hard

Statement effective Jan.

10.

Rock Mining

Co., Pittsburgh, Pa.
Feb. 20 (letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
for working capital. .Office —377 McKee Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.
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.,
Dec. 29 filed

Canton, Mass.

(par $1).
Price—To be supplied by amendment. Proceeds—For im¬
150,000 shares of common stock

provements, research, development and working capital.
Office—Metropolitan Airport, Canton (Norwood P. O.),
Mass.
Underwriter—To be supplied by amendment.

^Hidden Valley Properties, Inc.,

Reno, Nev.
March 2 (letter of notification) 6,000 shares of capital
stock (par $10) and $240,000 principal amount of notes




(formerly Fenner-Streitman

(par

etc.

equipment, machinery, inventory,

Calif. .
shares of capital
Proceeds — For.

Office—12909 So.
B,,

Hawthorne, Calif. Underwriter—Samuel
Franklin & Co., Los Angeles, Calif.
Insulated Circuits,

L.

Underwriter—None.

I., N. Y.

Louis, M},

Laclede Gas Co., St.

by

stock,
of

rate

series

stockholders of record March 16, 1956, at

common

the

shares of 4.32% convertible pre¬
A being offered for subs.ription

202,657

filed

21

ferred

preferred share for

one

each

15 shares of-

stock held; rights to expire on April 3.

common

Price

($25 per share). Proceeds — To reduce bank
Underwriter
Lehman Brothers; Merrill Lynch,

—At par

Pierce, Fenner & Beane and Reinholdt & Gardner
associates who won award of. the issue on March 14.

and
//

Engineering Co., Cleveland, Ohio

Lester

(letter of notification) 37,500 shares of common

24

Feb.

stock (par $1) to be offered for subscription by common
stockholders of record March 1,1956 on the basis of one
share for each 4J/4 shares held. Of the

new

unsubscribed

portion, up to 7,500 shares are to be offered to em¬
ployees. Price—$8 per share. Proceeds — For general

Office—2711 Church Ave., Cleve¬

corporate purposes.

Underwriter—None.

land, Ohio.

Inc., Belleville, N. J.

Glass Fibers Co., To

L-O-F

«

edo, O.

preferred
Price—
At par ($5 per share). Proceeds—For general corporate
purposes. Underwriter — Alexander Watt & Co., Inc.,

being offered for subscription by common stockholders
of record Feb. 29, 1956, at the rate of one new share for

New York.

Price—$12

tiled 10Q,000 shares of 6% convertible

Nov. 10

stock (cumulative if and to

the extent earned).

.

Atomic Devices Corp.

International

(letter of notification) 59,900 shares of common
stock (par $2). Price — $5 per share. Proceeds —. For
working capital and general corporate purposes. Busi*
ness—Manufacture of Educational Atomic Kits. Office—
18

Willow

North

Trenton 8, N. J. Underwriter—
Co., Jamesburg, N. J.

St.,

Louis R. Dreyling &

International Basic Metals,

Inc.

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.
(letter of notification)

Jan. 27

International Metals Corp.
Oct.

400,000

ploration and development of mining properties of Recursos
Mineros Mexicanofi, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
if Investors Group Canadian Fund Ltd.
March 9 filed (by amendment) an additional 7,000,000
shares of common stock (par $1). Price — At market.
Proceeds—For investment. Office—Winnipeg, Manitoba,
Canada.

Investment Co., Ltd.

Sept. 28 filed 9,000 ordinary shares. Price—At par (106
Israel pounds each, or about $55 in U. S. funds), payabl#
in State of Israel Independence Issue Bonds only, Offiei
—Tel

Aviv, Israel.

Underwriter

—

Rassco Israel Corp.,

New York.

Jurassic Minerals,

Aug. 26

shares of non¬
cent). Price—10 cents

Proceeds—For expenses incident to mining
—
326 West Montezuma St., Cortez,
Underwriter — Bay Securities Corp., New York,

share.

Office

;

-

-

Ave.,

'

(letter of notification) 1,944 shares-of common
stock (par $10) to be offered in exchange for, shares of
common stock of Kona Investors, Ltd. on the basis of one
share of common for each 1.6 share of Kona Investors
23

also $23,500 of promissory notes to be offered
shares of common stock of Kona Inves¬
tors not owned by
Kailua-Kona and not exchanged
under stock exchange offer at rate of $7.50 ofr notes

common;

in exchange for

fully-paid share of Kona Investors; also $25,000
of promissory notes to be offered in exchange for un¬
secured claims of Kona Investors, the amount of each
note to be 75% of the amount of the claim for which it

for each

exchanged. Office — 2333 Kalakaua Ave.,
Underwriter—None.-

Honolulu,

Hawaii.

Kara

Commodity Fund, Inc.

of notification) 275,988 shares of common
(par 10 cents). Price— 100/92 of the bid price

Feb. 24 (letter

stock

•

Equitable Securities Corp. and Union Securities Corp.
(jointly); W. C. Langley & Co. and The First Boston
Corp.: (jointly); Lehman Brothers; Blyth & Co.,/Inc.
Bids—To be received up to 11.30 a.m. (EST) on March 20.
if Macco Chemical Co., Cleveland, Ohio
(letter of notification) 4,707 shares of common
stock (no par). Price — $55 per share.
Proceeds—For
developing new products, etc. / Office—Shofield Bldg.,
Ea«t 9th St. & Euclid Ave., Cleveland, Ohio.
Under¬
writers—Cunningham, Gunn & Carey, Inc., and H. L.
Emerson & Co., Inc., both of Cleveland, Ohio.
-

Manati

Sugar Co.

standing 4% bonds maturing Feb. 1, 1957 on a share-forshare basis. Unexchanged shares may be sold by com¬
at approximately the principal amount
Proceeds—To retire old bonds.

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 Adolphus Tower Bldg., Dal¬
las, Texas.. Underwriter—First Western Corp., Denver,

thereof plus

interest.

Manville

Oil &

Uranium Co., Inc.,

Douglas, Wyo.

Feb. 21 (lettervof notification) 300,000 shares of common

(par 10 cents).
Price—50 cents per share. * Pro¬
mining expenses.
Office—308 East Center

stock

ceeds—For

Underwriter—Colorado Investment
>
■
> *
/ /
/

;

.

..

.

Midland Corp.

Marine

Feb. 6 filed 65,500 shares

of

common

stock (par $5) be¬

ing offered in exchange for outstanding common stock
of-The First Bank of Herkimer at rate of 6V2
Marine Midland
held

•

shares of

for each share of First National

common

aS

March 23.-

on

of record

March

v

-

'

5.< Offer
"

'

will expire
■

"V

Co., Detroit, Mich.' (3/16) ?
March 1 (letter of notification) 200,000 shares of common
stock (par $1)) Price—$1.50 per share. - Proceeds—To
purchase additional inventory, for distribution of mail'
order catalogue, and for working capital.-Office—4400
Cass Ave., Detroit 1, Mich. Underwriter—S. R. Living¬
stone, Crouse & Co.; same city.
if Marshall - (A. J.)

if McGregor-Doniger,, Inc., New York' (3/27) "
March 7 filed 325,000 shares of class A stock (par $1),
of which 300,000 shares are to be sold publicly for ac¬
count of certain selling stockholders; and 25,000 shares
for account of company to be offered directly to certain

employees,-without underwriting. Price—To be supplied
by amendment. Proceeds—For working capital-and gen¬
eral corporate purposes. Underwriter—Harriman Ripley
& Co., Inc., New York.
.„
.
,
; , <
* Mic-L-Silver Battery Co., Santa Ana, Calif.
Feb. 20

sories.

-

(letter of notification) 25,000 shares of preferred

Price—At

capitaLstock.

par

($10

per

share). Proceeds—

in manufacturing batteries and other acces¬
600 Terminal St., Santa Ana, Calif.

Office

—

.

Midland General Hospital,

r

(letter of notification)

^ '

filed

5

Underwriter—None.

Metals, Inc.

'

$2,184,300 of 6% collateral trust bonds
due 1965 to be offered in exchange for presently out¬
March

New York.

6

Co. (3/20).

(par $100). Proceeds—For property additions and im¬
provements. Underwriter—To .be determined by com¬
petitive bidding. Probable bidders: Kidder, Peabody &
Co.and Merrill Lynch, Pierce, Fenner & Beane (jointly);

For expenses

Feb.

working capital. Un¬

70,000 shares of cumulative preferred stock

9 filed

(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.,
Kassel Base

1956.
Proceeds—For capital improve¬

rights to expire March 26,

held;

share.

Louisiana Power &.Light
Feb.

common

if Kailua-Kona Ltd., 2333 Kalakaua
Honolulu, Hawaii
r
/
V

is

per

(par $5)

derwriter—None.

(letter of notification) 2,855,000

New York.

shares

10

St, Douglas, Wyo.
Co., Denver, Colo.

Inc., Cortez, Colo.

assessable common stock (par one

Feb.

each

pany

Israel-Rassco

"Isras"

filed 251,405 shares of common stock

10

March 2

shares of common stock (par 10
Price—$1 per share. Proceeds—To finance ex¬

filed

4

Feb.

ments; additional equipment, and

Feb. 21

Colo.

(letter of notification)

being offered

Fenner Corp.

(letter of notification) 150,000
$1).. Price — $2 per share.

Dec. 16

activities.

24,000 shares of capital
■tock (par $5) to be offered first to stockholders; "then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.
30

—

Ideal-Aerosmith, Inc., Hawthorne,
-

per

Marshall, Seattle, Wash.

Guaranty Income Life Insurance Co.
Dec.

of notification) 200,000 shares of common

(par 10 cents). Price—$1 per share. Proceeds—
For working capital.
Office—287 Post Ave., Westbury,

loans.

-

notification) 120,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
exploration and development expenses. Un¬

Co.), New York.

&

Ruth J.

Feb. 23

eral

stock

mon

cents).

if Granco Products, Inc.
March 5 (letter of notification) 20,000

South, Salt Lake City, Utah.
Raines, Las Vegas, Nev.

k

Under¬
Y.

February (letter of

Cerise Ave.,

notification) 3,000,000 shares of capital
(par five cents). Price—10 cents-per share./Pro¬
—

notification) ,920 shares of 6% cumula¬

preferred stock. Price—At par ($25 per share) and
accrued dividends. Proceeds—To repay indebtedness and

Dec. 27 (letter of
stock

;

stock

Feb.

tive

derwriter

payment of account

operating capital.

April 10.

on

March 7 (letter

•

N. Y.

if Gibbs Automatic Moulding Corp., Henderson, Ky.
Feb. 29 (letter of notification) 2,789 shares of common
stock.y Price—At par ($100 per share).
Proceeds—Fgit*

Ky.

received

writer—None.

mortgage bonds due
April 1, 1986. Proceeds—For construction program. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp.; Shields & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers; Blyth Co., Inc. and
Kidder, Peabody & Co. (jointly); Union Securities Corp.
and Equitable Securities Corp. (jointly). Bids—Expected
to be received up to 11 a.m. (EST) ®n March 29 at office
of Southern Services, Inc., Room 1600, 250 Park Ave.,
New York 17,

Inc., Montgomery, Ala.

filed

5

bidding.

Key Electric Corp.

125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein.
Under¬

$12,000,000 of first

filed

2

For working capital.

—

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth
Co., Inc.; Lee Higginson Corp.; Equitable Secu¬
rities Corp.; Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Union Securities Corp. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Baxter, Wil¬
liams & Co.; Kuhn, Loeb & Co.
Bids—Expected to be
gram.

/

Hometrust Corp.,
Jan.

(3/29)

Georgia Power Co.
March

Underwriter—None.

Underwriter—None.

70
D.

pansion of company's present operations. Office —
St., N. W., Atlanta 3, Ga. Underwriter—Dan
Dominey, Atlanta, Ga.

Fairlie

Reno, Nev.

$1,000 each). Proceeds

tions of

for subscription by j
Proceeds—For ex¬

$5) to be first offered
stockholders. Price—$30 per share.
stock

Price—At par. Proceeds—To
country club. Office—29

if Hillyard Sales Co. (Western), St. Joseph, Mo.
March 2 (letter of notification) $100,000 of 5% 10-year
subordinated debentures. Price—At par (in denomina¬

President.

Is

$200.

development of a

in

used

be

Jan.
and

12

filed

30,000

24,120

shares

Inc., Bronx, N. Y. stock (no par)
dividend preferred stock (no

shares of common

of $6

not intend presently to sell
raise, at most, $2,700,000.
Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.

par).
more

Price

.

The

company

does

stock than is required to
—

$100 per share.

'

Mineral Projects-Venture C,

Colorado.

ir Kentucky Utilities Co. (4/10)
March 12 filed $10,000,000 of first mortgage bonds,

G, due April 1, 1986.

Proceeds

—

series
For construction pro¬

Feb. 7 filed

ited

Ltd., Madison, N. J«

$4,000,000 of participations'in capital as lim¬

partnership interests in the venture to be sold in
•
Proceeds—For expenses in-

minimum units of $25,000.

Volume 183

Number 5516... The Commercial and Financial Chronicle

(1351)

■i*

cidental to oil exploration program.

Nicholson -(W. H.)-& Co.,
Underwriter—Min-y*
Wilkes-Barre, Pa....
Projects Co., Ltd., on "best efforts basis.-'H*- :r:"
Jan. U6"filed 20,000 shares of common stock
(par $5).
Price—$25 per share. Proceeds
For working capital.
it Mohawk Silica Co., Cincinnati, Ohio
Underwriter—None. A. E. Nicholson Jr. of
March 8 (letter of notification) 3,009 shares of 8% cumu¬
Kingston, Pa.
is President.
lative convertible preferred stock (par $50) and 3,000
shares of common stock (no par). Price—At par for pre-v
Northern Ohio Telephone
Co., Believue, Ohio
*
ferred; and $10 per share for common. Proceeds—For
Feb. 24 filed 70,290 shares of common stock
(par $10)
expenses
incident to development - of silica deposits.
to be offered for
subscription by stockholders at the
Office—2508 Auburn Ave., Cincinnati, Ohio. Underwriter
rate of one new share for each five
shares held. Price—
—None.
*y
To be supplied by amendment.

^Precision Radiation Instruments, Inc..
(letter of notification) 22,222 shares of

eral

Feb. 23
stock

—

the

it Moicfa

Uranium & Exploration Corp.,
Dillon, Mont.
March 5 (letter of notification) 200,000 shares of com¬
mon stock.
Price—At par (25 cents per share). Proceeds
—For mining expenses. Office — c/o Schulz &
Davis,
Telephone Bldg., Dillon, Mont. Underwriter—None.

Cook &

Murdock

of

S.

& Co.;
Merrill, Turben & Co.; and Lawrence
-

20

1

the

rate

of

one

Rapp

for

held; rights to expire on: March 20.
Price—$16.75 per share. Proceeds—To repay bank loans
construction program. Underwriter
and Riter & Co.
(jointly) who were

—

Brothers
the issue

-

on

Feb. 29.

ment. Proceeds—To repa^ bank loans incurred by

Lehman

'

& Oil

eral corporate purposes.

Co., New

Redlands Oil Co., ltd.
k
i .
Jan, 23 filed $1,000,000 of partnership 'interests to be
,

offered in

Underwriter—Philip Gordon &

York.

Acquire

.

Narragansett Electric Co.

(3/20)

>

v:

&

Co.

Inc.

(jointly);

Union

Securities

March 20 at Room 804, 15 Westminster
St., Providence

10

Finance

Co.,

Detroit,

Mich.

—$12.50

per

share.

1,

(3/27)

'.same city.

Investment

Service

Metallizing

ment
■

-

Price—$2 per share.

Proceeds—For

vacuum

•I

'

'

s

r0k

■*".

National Old Line

V

.

■

—

—

.postponed.

.

Nevada

i Jan.

30

Natural

Gas Fipe Lire Co.
$1,000,000 of 5Vz% subordinated

filed

sinking
fund debentures due March 1, 1976, and 160,000 shares
of common stock (par $1) to be offered in units of $25

,

of debentures and four shares of stock.

unit.

Proceeds—To repay

struction.

Price—$50J>{Eper

bank loans and for

new

con¬

Office—Las

Vegas, Nev. Underwriter—First
California Co., San Francisco, Calif.
"
New

„

Britain

Gas

Light Co., New Britain, Cdtfri.^
Feb. 10 (letter of notification) 8,326 shares of comfnon
stock (par $25) being offered for subscription by Com¬
stockholders

mon

of

one

share

new

of

record

for

each

Jap. 27,
nine

on the^hasis
held; righft: to

1956

shares

expire March 23.
r

Price—$29 per share. Proceeds-^For
financing future plant additions. Office—35 Couff' St^

New

Britain, Conn. Underwriter—None.
Textile Mills,

Jackson, Miss.

Jan. 13 filed 2,298,000 shares of

Price—$3
erties
To

be

per

and

named

New

share.

general

York

common

stock

"

(pax' $1).

Proceeds—For acquisition of
prop¬
purposes.
Underwriter-^

corporate

—A

Proceeds

crude

oil

and

City, Okla.
& Co., New York.

ney

producing

gas

Underwriter—D.

company.
A. Lomas¬

Telephone Co.

-

{3'27)

•—To

be

determined

by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley" &
Bids—Expected to be received up to 11 a.m. (EST)

30, 1956
stock

the basis of nine additional shares of

on

for

each

shares of

100

shares

held

and

common

nine

new

stock for each 45 shares of preferred
This offer will not be made to holders of the

stock held.

6,492,164 shares of
of

common

common

the

common

Sinclair

stock issued for the

properties

under

an

offer

acquisi¬
of

June

28, 1955. Price—At par ($5 per share). Proceeds—For
working capital and general corporate purposes. Under¬
writer—None.
Peninsular

Telephone Co., Tamps, Fia. (3/22)
March 2 filed 189,844 shares of common stock
(no par)
to be offered for subscription
by common stockholders
at the

of

one

new

share for

each

five

shares held

March

on
—

fate

21; rights to expire on April 5.
Price
supplied by amendment.
Proceeds —To re¬
bank loans and for new construction. Underwriters

To

pay

be

—Morgan
of New

Stanley & Co. and Coggeshall & Hicks, both

York.

it Pennsylvania Salt Manufacturing Co. (3/27)
March 12 filed $15,000,000 of
sinking fund debentures
due April 1, 1981. Price—To be
supplied by amendment.:
Proceeds
For expansion, development and
improve¬
ment

program.

Pinellas

Kidder, Peabody & Co.,

Industries, Inc., St. Petersburg, F!a.

16

(letter of notification) 8,000 shares of class A
stock (par $1).
Price—At the market (maxi¬
$6). Proceeds—For working capital. Office—34th

St. & 22nd

—Eisele &

filed

Price—$4
general

~

Ave., North, St. Petersburg, Fla. Underwriter
King, Libaire, Stout & Co., New York.

notes

American

per

115,000 shares of common stock (par $1).
share. Proceeds—To pay current accounts

payable; for research and development: and
corporate

purposes.

Securities Co.,

Underwriter

Tulsa, Okla.

—

North

Colo.

Underwriter—Luckhurst

Underwriter

&

Co.,

Inc.,

—

The Matthew

Corp., Washington,

Airlines,

Inc., Miami, Fla.
967,500 shares of common st6ck (par 10
cents) to be offered for subscription by stockholders at
20

filed

rate

of

one

new

share

for

each

four

shares

held

oversubscription privilege).

an

[The company has
obtained from certain stockholders waivers of
subscrip¬
tion rights applicable to not less than
100,000 shades and
such shares are to be offered to the
general public frea
of the stockholders' prior
rights.]
Price—To be sup¬
plied by amendment.
Proceeds—To repay bank loan
and

for

working capital.

Underwriter-^-Eisele &

Libaire, Stout & Co., New York.

\

•

-

•

Riegel Paper Corp., New York
Feb. 9 filed 194,155 shares of common stock
(par $10)
being offered for subscription by common stockholders
of record March

five

Price

6, 1856, at the rate of one
held; rights to expire

shares

$30 per share. Proceeds
equipment. Underwriter—Morgan
—

—

new

on

share for

March

For expansion

20.

and

Stanley & Co., New

York.
•

Rokeach

Jan.
Price

27

(I)

&

Sons,

Inc. (3/20)
shares of common stock (par $1).
share. Proceeds — To eliminate bor¬

filed 400,000

—

$3

per

rowings from commercial factors and enable the com¬
pany to finance its own accounts; for working
capital;
and other general corporate purposes.
facturer of kosher food

Business—Manu¬

products, soaps and cleansers.
Underwriter—Jay W. Kaufmann & Co., New York.

Rotary Electric Steel Co.
Feb.

16

filed

69,670 shares of

to be offered for

fixed

on

or

(3/22)

stock (par $10)
subscription by stockholders of record

March 21, 1956 on the basis of
shares held; rights to expire

common

one new

share for each 10

April 4.

Price—To be
Proceeds—For general cor¬
Underwriter—W. E. Hutton & Co., Cin¬
on

about March 21.

porate purposes.

cinnati, O.
it Rowland Products, Inc., Kensington, Conn.
March 5 (letter of
notification) 11,912 shares of common
stock

Pipelife Corp., Tulsa, Okla.
Nov. 29
and




—

New York.

Co.

March 27.

Underwriter

2,

Riddle

Dec.

each
-

bidders:

on

common

Price — $6 per share. Proceeds — For
Office—822 First National Bank Bldg.,

expenses.

D. C.

(with

mum

$55,000,000 of refunding mortgage borids,
I, due April 1, 1986. Proceeds — Together With
funds from sale of 1,100,000 additional shares of common
stock at $100 per share to American Telephone &
filer
graph Co., to be used to repay bank loans. Underwriter
series

Utah.

the

Peabody Coal Co., Chicago, III.
Feb. 27 filed 210,823 shares of common stock to be
offered for subscription by stockholders of record Jan.

common

March 2 filed

v';:

Reynolds Mining & Development Corp.
Nov. 22 filed 1,500,000 shares of common stock
(par
one
cent).
Price—50 cents per share.
Proceeds—For
working capital and mining expenses. Office — Moab,

,

natural

cor¬

Minerals

(par $1).

Denver

To repay loans,

—

Office—Ponca

Feb.

by amendment.

general

Kissel and Sidney M. Gilberg, as Tras-

Corp., Denver, Colo.
(letter of notification) 40,000 shares of

Jan. 30

Parker Petroleum Co., Inc.

—

New South

Proceeds—For

New York.

tion

.

mem¬

^

Reynolds

supplied by amend¬
etc.; for exploration
and development costs and for
working capital. Business

<

certain

tees.

Bremerton, Wash.

stock

ment.

Insurance Co.

Nov. 15 filed 50,000 shares of class A common jjtock
;• (par $2)
and 50,000 shares of class B common-stock
t (par $2).
Price—To be supplied by amendment, -pro¬
ceeds
To selling stockholders. Office
Little-^ock,
Ark." Underwriter—Equitable Securities Corp..
1 ville, Tenn., and New York, N. Y. Offering—Indefinitely

unit.

to

acceptable applicants
policyholders in the com¬

Underwriter—None; to be offered by

'

Feb. 20 filed 150,000 shares of 6% cumulative convertible
-preferred stock (par $10) and 150,000 shares of common
stock (par 10 cents). Price—To be

y

per

porate purposes.
Leo Rich, Robert

mining

•.

tsar-

to become active

are

Price—$2

pany.

Steyer, Tacoma, Wash., and Robert E. Bukke, Northport, Wash.

■

•

and who

R.

'

-

procurement agreement to be offered
bers of the general public who are

temporary

notification) 200,000 shares of common
(par five cents). Price—20 cents per share. Pro¬
mining expenses. Office—415 South Cam¬
brian Ave., Bremerton, Wash.
Underwriters—William

„

Underwriter—Wil¬

Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock

stock

^ National Musitime Corp.
:
^
March 7 (letter of notification) 300,000 shares of common
stock (par five mills). Price—$1 per share. Proceeds-1j?For general corporate purposes, including reduction,"6f
"loan payable and for expansion. Office—730
Fifth"Aye,,
New York City. Underwriter—Wagner &
Co., 15 William
St., New York, N. Y.
.1
.

and for general corporate
purposes.
& Bayley Investment Co.

ceeds—For

metallizing,

:..y"

'

19 filed

son

utility properties.
competitive bidding.

Pacific Northwest Mining
Co.,
March 1 (letter of

conditioning, slitting and inspection machinery;-. Offlce-^1145-19th St., N. W., Washington, D. C.
Underwriter^None.

loans obtained for

Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.
Inc.; The First Boston Corp. Bids—Tentatively expected
to be received up to 8:30 a.m.
(PST) on March 20.
*

l-for-4'basis.

a

Hacienda, Inc., Inglewood, Calif.
4,000,000 shares of common stock. Prfcfr—
($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilities

of additions to company's
Underwriter—To be determined by

-

on

short term bank

Under¬

At par

(3/20)

financing

(letter of notification) 24,000 shares of Class A
stock (par $1) and 40,000 shares of Class B
stock-(par
$1) to be offered for subscription by Class A and'Class
1, 1956

of

•

-March 5

B stockholders of record Feb.

Electric Co.

bread products.

Minneapolis, Minn.

Reno

Dec.

$25,000,000 of first and refunding mortgage
bonds, series Z, due Dec. 1, 1988. Proceeds—For retire¬

L

Corp.

writer—M. H. Bishop & Co.,

Feb. 28 filed

Co.,

/•'.

National

factures and sells at wholesale

21

Pacific Gas &

Lithium Corp., Denver, Colo.
■
(letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,
—

share for each

Knitting Mills
(letter of notification) $296,600 of 20-year 6%
debentures due March 1, 1976.
Price—100% of principal
amount/ Proceeds—To redeem
preferred stock and for
working capital. Office—350 Fifth Ave., New
York, N. Y.
Underwriter—None.

Proceeds—For working capitals Un¬

Underwriter

new

Oneita

National

-Denver, Colo.

one

Beane, New York.

Feb.

Dec. 27

;

rate of

Regan Bros. Co., Minneapolis, Minn.
$500,000 of 6% sinking fund first mortgage
bonds due 1976.
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¬
Feb. 17 filed

stockholders

shares held;

&

derwriter—Baker, Simonds & Co., Detroit, Mich;*'.tf#x:2'
■

a

common

(par $10)

rights to expire on March 27.
Unsub¬
(up to 15,000) may be offered to employ¬
ees.
Price—$34 per share. Proceeds—For construction
program.
Underwriter—Merrill Lynch, Pierce, Fenner

March 5 filed 48,000 shares of convertible
preferred stock
(par $1), of which 44,000 shares are to be sold to the
■public and 4,000 shares to officers and employees. Pfice

'

March 8 at

Proceeds—To

amendment.

stock

common

scribed shares

•

National

t

filed 298,479 shares of

being offered for subscription by

•Peabody & Co. and Stone & Webster Securities Cprp.
(jointly); Lehman Brothers and Goldman, Sachs & Co.
-(jointly). Bids—To be received up to 11 a.m..(EST) on
R. I.

15

of record

Kidder,

Corp.;

Oklahoma Gas & Electric Co.

Feb.

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 Firsf Bos¬
ton Corp.; Kuhn, Loeb &
Co.; Salomon Bros. & Hutzlej,
White, Weld & Co.; Blyth & Co. Inc. and Harriman Ripley

minipium amounts of $25,000.

leases for drilling for oil and gas and for devel¬
Underwriter — Name to be supplied by

opment costs.

!

Feb. 21 filed $10,000,000 of

*

f

(par five cents). Price—15 cents per share. Pro¬
ceeds—For exploration and
development and other gen¬

Expected to become ef¬

Underwriter—Edward D. Jones &

program.

Co., St. Louis, Mo.

stock

fective tcday (March 15).

com¬

to redeem and cancel all of the issued and out¬
standing shares of 4% and 7% preferred stock; and for
pany

Corp., Farmington, N. M.
r
(letter of notification) 2,000,000 shares of common

Nov. 8

t

Inc., St. Louis, Mo.
150,000 shares of 5^>% cumulative pre¬
(par $10). Price—To be supplied by amend¬

ferred stock

awarded

■/.

y/

>

-

(Fred P.),

•

expansion

Oak Mineral

,

P.

March 2 filed

shares

and for

and

'

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., Renp, Nev.

,

share

new

—

R.

Power Cc.

at

(par 10 cents). Price—$1 per share. Proceeds
mining expenses. Office—Viener-Jones Bldg., 230
5th St., Las Vegas, Nev. Underwriter
First Jersey-

Securities Corp>, Newark, N. J.

Underwriters—Hayden, Miller

States

March

record

each

Acceptance Corp. (3/16) -/'
Feb. 15 filed 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. Offering—WilFnot
be made in State of New York;

for

common

Proceeds—•

stock

mon

(Minn.)
Jan. 20 filed 670,920 shares of common
stock (par" $5)
being offered for subscription by common stockholders

Mining Corp., Salt Lake City, Utah
Feb. 9 (letter of notification)
3,000,000 shares of capital
stock (par one cent).
Price—10 cents per share. Proceeds-r-For mining expenses. Office—223 Phillips Petrol¬
eum Eldg., Salt Lake
City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev..
•

treasury

share.

per

—For

Proceeds—To reimburse
additions and betterments

Co.; all of Cleveland, O.

Northern

Mormon Trail

I.

company's

made to property.
McDonald & Co.;

Price—$2

Norman, President, who is the selling stock¬
holder. Office—4223 W. Jefferson
Blvd., Los Angeles,'
Calif. Underwriter—Dempsey-Tegeler &
Co., same city.
it Quo Vadis Mines, Inc., Las Vegas, Nev.
March 8 (letter of
notification) 300,000 shares of com¬

r

.

cents).

To Leslie M.

-

_

(par 50

63

(par

$12.50)

stockholders
Proceeds

building

—

and

on

For

for

a

to

be

l-for-3

offered

for subscription by
Price—$25 per share.
equipment of a new
capital. Office — Fairview

basis.

construction

working

and

Place, Kensington, Conn. Underwriter—None.
Continued

on

page

64

-

64

The Commercial and Financial
Chronicle...

(1352)

•

Ryder System, Inc., Miami, Fla.
30 filed 151,050 shares of common stock (par $5).
Price
To be supplied by amendment.
Proceeds—To
help finance purchase of five other truck lines. Under¬
writer— Blyth & Co., Inc., New York. Offering—Not ex¬
pected until the end of March or beginning of April.
—

filed

21

to be offered in

deposited for exchange; and may
be declared effective if a lesser amount, but not less
than 80% of said shares, are so deposited. Dealer-Man¬

lander common stock is

agers—White, Weld & Co., New York, and A. G. Becker
&
v

Brewing Co.

Francisco

San

(letter of notification) voting trust certificates
covering 10,275 shares of common stock (par $5). Price
$14.50 per share. Proceeds — To selling stockholder.
Underwriter—Blyth & Co., Inc., San Francisco, Calif.
17

San Juan

Racing Association,

Inc.*

Puerto ltl«a«

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 offerings are to be made in two parts: (1) an offering, at
60 cents per share, of 200,000 shares for subscription by
atockholders of record April 30, 1955, on a two-for-onr

basis; and (2) a public offering of 3,000,000 shares, to b«
represented by voting trust certificates, at 58.8235 centi
per share. Proceeds—For racing plant construction. Un¬
derwriter—None. Hyman N. Glickstein, of New York
City, is Vice-President.

4

it Schwartz Carbonic Co., El Paso, Texas
Feb. 27
to

(letter of notification) 30,700 shares of common
be offered for subscription by stockholders on

basis of 0.6158

new

share for each

common

1600 East Eleventh

Scott

Paper Co., Chester, Pa.

March 1, 1971, to be

stockholders

of

(3/21)

offered for subscription by

record

March

20

on

the

basis

due

common

of

$100

principal amount of debentures for each eight shares of
stock held; rights to expire on April 3. Price—To be sup¬

plied by amendment. Proceeds — To repay bank loans;
for expansion and increase of investments; and for gen¬
eral corporate purposes. Underwriters—Drexel & Co.,
Philadelphia, Pa.; and Smith, Barney & Co. and Merrill
Lynch, Pierce, Fenner & Beane, both of New York.
Shangrila Uranium Corp.
30 (letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per share).
Proceeds—
For mining expenses. Underwriter—Western States In¬
vestment Co., Tulsa, Okla.

Dec.

* Sierra Prefabricators, Inc.

(letter of notification) 149,500 shares of cap¬
stock (par $1). Price—$2 per share. Proceeds—For
working capital and general corporate purposes. Under¬

ital

Co., New York.

States Oil & Gas Co.

8 filed 245,000 shares of common stock
(par $1).
Price—$5 per share. Proceeds—To pay for note issued
in part payment for acquisition of property; for
acqui¬

Feb.

sition of further oil

and gas leasehold

interests; for de¬
costs; and working capital.
Office
San Antonio, Tex.
Underwriters — Dittmar &
Co.: Russ & Co.; and Dewar, Robertson & Pancoast, all

velopment

and

drillings

—

of San Antonio, Tex.

Southern

Oxygen Co., Bladensburg, Md.
$2,650,000 of 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 16.
Feb.

1

one

filed

The

old debentures have been called
and payment March 31, 1956 at 100y2%
terest. On exchanges the one-half of

Strategic Metals, Inc., Tungstonia, Nevada
4 (letter of notification) 1,200,000 shares of

Jan.

stock.

Price—25 cents per share.
incident to mining operations.
R. Reynolds & Co., Salt Lake City, Utah.
mon

(par five cents).

Price

Proceeds—For mining expenses.

cap¬

25 cents per share.
Underwriter—None.
—

stock at

share) and 25 shares of preferred stock for each

per

100

shares

of

common

stock

presently held.
Price—
$418.75 per unit. Proceeds—For expansion and working
capital. Office—404 Logan St., Adrian, Mich.
Under¬
writer—Golkin & Co., New York.
Suburban Land

Foundation,

Broad St.,
Newark, N. J. Underwriter—Berry & Co.,
Plainfield, N. J.
:
;

Developers, Inc., Spokane, Wash.

,

¬

.

.

* Tripac Engineering Corp., Silver
Spring, Md. ^
.March 5 (letter of
notification) 900 shares of preferred
stock (par
$100) and 18,000 shares of common stock (par
10

cents) to be offered in units of 20 shares of common
and one share of
preferred stock. Price—$102 per unit.

Proceeds—To be used for leasehold
improvements, pur¬
chase of office
equipment, working capital, etc. Office—
922

Burlington Ave., Silver Spring, Md.

None.

Underwriter—

*

Tuna craft,

Inc., Kansas City, Mo.
(letter of notification) $250,000 of 6%
12-year
registered subordinated sinking fund debenture
notes
due Jan. 1, 1968.
Price—At par.
Proceeds—To reduce

Jan.

17

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¬

outstanding secured obligations. Underwriter—McDon¬
ald, Evans & Co., Kansas City, Mo.
Dec.

Underwriters Factors Corp.
7 (letter of notification)
29,500

per share; and of common, $15 per share.
Proceeds—For improvements and
working capital. Of¬
fice—909 West Sprague

participating convertible preferred

writer—W. T. Anderson &
Co., Inc.,

offered

Ave., Spokane, Wash. Under¬
Spokane, Wash.

Superior Uranium Co., Denver, Colo.
(letter of notification) 29,600,000 shares of
stock.
Price—At par (one cent per share).

Nov. 9

2,950

shares
in

Proceeds
com¬

mon

Pro¬

ceeds—For

mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O
Box 127, Arvada, Colo.

of

of

10

common

To

—

stock

common

units

share of

one

shares

Oklahoma Oil Co., Inc.
(letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for
subscription by
stockholders. Price—$10 per share.
Proceeds—For .ex¬
penses incident to development of oil and
gas properties.
Office—801 Washington
Bldg., Washington, D. C. Under¬
writer—None.

one
cent) to be
preferred stock and

stock.

Price
$100.01 per unit.
working capital. Office — 51
York, N. Y. Underwriter—New York
Securities Co., 90 Wall St., New York,
^
—

increase

and
N.

American

Y.

Union of Texas

it Target Uranium

Jan. 19 (letter of

March 1

Oil Co.,
Houston, Texas
notification) 240,000 shares of

stock

Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of

com¬

stock (par five cents).
Price—20 cents per share.
Proceeds—For mining expenses. Office — 422 Paulsen

mon

Blag., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,

Taylor

Petroleum

Corp., Norman, Okla.
200,000 shares of common stock (par $1).
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.
Feb.

Inc.
(letter of notification) $300,000 of
6%
convertible debentures due March
and 30,000 shares of common stock
(par $1) to be
in units of $500
principal amount of debentures
24

10-year
1, 1966
offered
and

Proceeds—To

50
re¬

common

(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.
U.

S.

Automatic Machinery & Chemical
Corp.
(letter of notification) 300,000 shares of class A
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds
For general corporate
purposes.
Office—8629
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135
Broadway, New York.
Nov. 4

1

filed

Price—To

be

Tele-Broadcasters, Inc., New York

common

—

Urania, Inc., Las Vegas, Nev.
20 (letter of
notification) 50,000 shares of capital
Price—At par ($1 per share).
Proceeds—For ex¬
penses incident to mining operations. Office—1802
South
Jan.

stock.

Jan. 11

Main St., Las

stock

man

(letter of notification) 200,000 shares of common
(par five cents). Price—$1.50 per share. Proceeds

—For conversion of station "WARE" to full-time
broad¬
casting; to buy a fourth radio station; and for general

corporate purposes.
Underwriter—Joseph MandeU
48 Hudson Ave.,
Waldwick, N. J.
•

Co.,

Telechrome

Feb.

15

common

Manufacturing Co.
(letter of notification) 99,800 shares of class A
stock (par 10 cents).
Price—$3 per share. Pro¬

ceeds—For
Electronic

expansion and
apparatus.

working capital.

Office

84

Business—

East

Merrick Road,
Underwriter—All States Secu¬
Dealers, Inc., New York. Offering — Now being
—

Tenison Drilling Co.,

Inc., Billings, Mont.

Dec. 12 filed 400,000 shares of

Vegas, Nev. Underwriter—Fenner-StreitCo., New York City.

&

it Uranium Corporation of America,
Feb.

24

Price—At

(10

par

Portland,

Ore.

1,000.000 shares of

(letter of notification)

stock.

mon

com¬

cents

Portland 4,

Ore.

City, Utah
(letter of notification) 77,875 shares of common
(par 25 cents).
Price—$1 per share.
Proceeds—

13

stock

mining

Utco

Uranium

30

stock, which

share.

Texas Eastern Transmission
30 filed 200,000 shares of

Nov.

stock

preferred

Price—To be supplied by amendment.
Proceeds—Toward redemption of
presently outstanding
190,000 shares of 5.50% first preferred stock. Under¬

writer—Dillon, Read & Co., Inc., New York.
Temporarily postponed.

Offering—

Tex-Star Oil & Gas

Corp., Dallas, Texas
(letter of notification) 99,990 shares of

(par $1).

Price

—

$3

per

share.

working capital and general corporate
—Meadows
Building, Dallas, Texas.
Thomas F. Neblett, Los
Angeles, Calif.
•

Tide Water Associated Oil Co.
Feb. 29 filed $100,000,000 of
tures due 1986.

Price

—

East

(letter of

underwriter.

—

21st

South

Pioneer

Corp., Denver, Colo.
notification) 200,000 shares of
are

St.,

Invest¬

com¬

covered by an option held by the
cents per share.
Proceeds—For

Price—10

mining expenses. Office—310 First National Bank
Bldg.,
Denver, Colo. Underwriter
Amos C. Sudler & Co..
—

same

city.

Vance

Corp.
cumulative

(nar $100).

Jan. 20

Office—538

expenses.

Lake City, Utah.
Underwriter
ments, Salt Lake City, Utah.

mon

per

Pro¬

Uranium Exploration Co., Salt Lake
Feb.

Proceeds—For drilling test costs,
payment of notes and accounts payable and loans
and
for general working capital.
Underwriter
Carroll
Kirchner & Jaquith,
Inc., Denver, Colo. Statement ef¬
fective Feb. 15.

Price—$1

stock

share).

Bldg.„
Sorenson,

Jan.

common

per

ceeds—For mining expenses. Office—1101
Failing
Portland 4, Ore.
Underwriter—Orval Walker

(par 10£).

stock

Spencer-Kennedy Laboratories,

of 6%%
(par $10) and

(par
of

Salt

Southwestern

shares

stock

Vesey St., New

made.

Feb. 27

■

Tremont Motel Corp.
16 (letter of
notification) 80,000 shares of common
stock (par 10
cents). Price—$2.50 per shares Proceeds
—For purchase of
property and construction of addi->
tional motor
courts; and for working'capital: Office— !;

1%

mining expenses. Office—1519 E. McDowell
Road, Phoenix, Ariz. Underwriter—None.




Lara,

Feb.

For

ceeds—For

per unit.

W.

744

debentures due 1966 (with warrants to
purchase 60,000 shares of common
stock) and 100,000 shares
of 60-cent cumulative preferred stock
(par $5) to be
offered for subscription by common stockholders of rec¬
ord March 5 in units of $250 of debentures
(with war¬

$8

Underwriter—Harold

St., Rochester, N. Y.

Proceeds—To finance its business as a life
insurance
Underwriter—None. J. R. Hoile is PresidentTreasurer; and G. F. Kennedy is Secretary.

^

it Stubnitz Greene Corp., Adrian, Mich. (3/29)
March 29 filed $1,000,000 of 5V2%
sinking-fund sub

common

States.

For exploration

—

company.

and promote the products of the company and for work¬
ing capital. Office—1798 Mentone Boulevard, Mentone,

15 shares of

Proceeds

Inc.

Manufacturing Co., Mentone, Calif.
(letter of notification) 60,000 shares of preferred
stock (par $4) and 30,000 shares of common stock (par
50 cents) to be sold in units consisting of two shares of
preferred and one share of common stock. Price—$8.50
per unit.
Proceeds—To be used to publicize, advertise

rants attached to purchase

share.

Educational

it Struthers

Underwriter—None.

per

TranSouth Life Insurance
Co., Columbia, S. C.
Feb. 21 filed
941,250 shares of class A non-voting com¬
mon stock
(par $1) and 10,270 shares of class B
voting
common stock (par
$1) of which 100,000 class A and all
of the class B shares are
to be reserved on exercise of
options to be granted to employees and
directors of the
company.
Class A shares are to be offered in
units of
four shares each, and at
$8 per unit, under a condition
that each purchaser donate
one share out of
every four
shares purchased to TranSouth

Proceeds—For

—

Price—$500

241 Sanford

Feb. 20

Calif.

50 cents

—-

development costs.

rities

redemption

* Southwestern Mining Co., Inc.,
Phoenix, Ariz.
(letter of notification) 521,738 shares of com¬
mon
stock.
Price—At par (50 cents per
share).
Pro¬

shares of stock.

and

Underwriter—

it Stratum Uranium Corp., Provo, Utah
(letter of notification) 1,200,000 shares of

ital stock

Price

com¬

March 9

(par $1) to

United

May 31, 1956. Price —
Proceeds—Together with funds from bank loan of $6,275,000, for construction program. Underwriter—White,
Weld & Co., New York.

Amityville, L. I., N. Y.

for

March 8

subordinated

Feb. 9 filed 200,000 shares of
common stock
be offered
publicly to residents of the

and accrued in¬

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.

Feb.

Tomrock Copper Mines
Ltd., Toronto, Canada

share

separately transferable until
To be supplied by amendment.

Wash.

(Calif.)

March 12

writer—S. D. Fuller &

portation facilities; and for
repayment, in whole or in
part, of short term borrowings.
Underwriters—Eastman,
Dillon & Co.;
Kuhn, Loeb & Co.; and Lehman Brothers.

(3/26-30)

ferred, $100

St., El Paso, Tex. Underwriter—None.

March 2 filed $98,685,100 of convertible debentures

South

Spokane Natural Gas Co.

of stock which will not be

share held.

Price—$7.50 per share. Proceeds—For expenses incident
to manufacturing and sales of carbon dioxide.
Office—

•

•

Feb. 2 filed $3,505,000 of subordinate interim notes due
Jan. 31, 1982 and 70,100 shares of common stock (par

ordinated

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 5V2% 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.

stock

Proceeds — To finance various
projects, including con¬
struction of the company's Delaware
Flying A refinery;
for acquisition and
development of crude oil production,
for expansion and
improvement of refining and trans¬

Mass.

expenses

Co., Inc.

Feb.

for investment in community TV
Office—1320 Soldiers Field Road, Bos¬
35, Mass. Underwriters—Childs, Jeffries & Thorndikd and Minot, Kendall & Co.,
Inc., both of Boston,
ton

$1) to be offered in units of $50 of notes and

Regis Paper Co,

540,000 shares of common stock (par 95)
exchange for outstanding common stock
of Rhinelander Paper Co. on a share-for-share basis.
The offer will be declared effective if 90% of RhineFeb.

loans and

antenna systems.

Jan

St.

bank

duce

Continued from page 63

Thursday, March 15, 1956

common

Proceeds—For

purposes.

Office

Underwriter

—

(3/22)

30-year sinking fund deben¬
To be supplied
by amendment.

Industries, Inc., Evanston, III.
(letter of notification) 7,000 shares of common
(par one cent)* Price—$7 per share. Proceeds—
To selling stockholders.
Office
2108 Jackson
Ave.,
Evanston, 111. Underwriter—Arthur M.
Krensky & Co.,
Inc., Chicago, 111.

Jan.

24

stock

—

ir Verus Corp., Houston, Texas
Feb. 8 (letter of
notification) 297,500 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—To
purchase molds and equipment and for
inventories and
working capital. Office
930-75th St.,
Houston, Tex.
Underwriter—None.
—

Wagon Box
Nov.

21

filed

Uranium

2,000,000

Corp., Provo, Utah
shares

of

common
stock
(par
share." Proceeds—To
explore and acquire claims, for purchase of
equipment

five

cents).

Price—25

cents

per

-

Volume 183

Number 5516... The Commercial and Financial Chronicle

•nd for

working capital and other corporate purposes.
P. Investment Co., Provo, Utah and
Honolulu, Hawaii.

(1353)

Wycotah Oil & Uranium, Inc., Denver, Colo.

Underwriter—H.

Probable bidders: Halsey,

Stuart & Co. Inc.; Blyth &
Co., Inc. and The First Boston Corp. (jointly); Lehman
Brothers; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane and Kidder,-Peabody & Co. (jointly).

Nov. 10 filed 1,500,125 shares of common stock (par one

cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the
owners of certain uranium properties, and in exchange
for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.

^ Ward Industries Corp.
(Formerly Martin Parry Corp.)
9 (letter of notification) 12,000 shares of $1.25

March

cumulative preferred stock, series A (par $25) and 1,500
shares of common stock (par $1) to be issued in ex¬

change for 5% cumulative preferred stock (par $100) of
The Prosperity Co. on the basis of four Ward preferred
shares, one-half share of Ward common stock and $1.05

Central Illinois Light Co. (4/4)
was announced company plans to offer to Its
common stockholders of record April 3 the right to sub¬

Jan. 25 it
scribe
of

Carp., Miami, Fla.
reported early registration is expected
stock. Price—Around $4.25
per share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, I1L
it

pected

^Coastal Transmission
Feb. 29 it

_

it Wells Organizations, Inc., Chicago, III.
Feb. 28 (letter of notification) 1,808 shares of class B

American
Jan. 23 it

stock.

Price—At par ($100 per share) and $50,10-year bonds. Price—At par. Office—222
North Wells St., Chicago, 111. Underwriter—None.

common

000

of

Jersey Title & Guaranty Co.
(letter of notification) 10,000 shares of common
(par $10) of which 8,000 shares are first to be
offered for a period of 30 days in exchange for outstand¬
ing preferred stock on a 2-for-l basis; any shares re¬
maining will be offered to common stockholders. Price—
$25 per share. Office—Third and Market Sts., Camden,

Feb. 17 it
on

Transmission

Co.,

Ltd.

(3/28)

Feb.

by amendment. Proceeds—Together with funds to be re¬
companies and banks and from
additional 3,271,000 shares of stock to West-

coast Investment

Co., to be used to construct a pipe-line
Office—Calgary, Alta^ Canada. Underwriter—
Eastman, Dillon & Co., New York.

Bids

(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.
ment to be v/ithdrawn.

be received

to

& S. A.

of one new share for each 15 shares held; rignis
expire on April 2. Price—$35 per share. Proceeds—
For expansion, etc.
Underwriters—Blyth & Co., Inc.
and Dillon, Read & Co. Inc.
to

it Btackstone Valley Gas & Electric Co.
Feb. 27 it was reported company plans to issue some
preferred stock during 1956. Proceeds—To reduce bank
loans.
Underwriter—To be determined by competitive

Underwriter—None.

Whirlpool-Seeger Corp. (3/20)
Feb. 29 filed $30,000,000 of sinking fund debentures due
Aug. 1, 1980; and 150,000 shares of common stock (par
$5), the latter to be sold for the account of a selling

Probable bidders: W. C. Langley & Co.; Esta& Co. and Stone & Webster Securities Corp.

bidding.
brook

each
held.

29

on

basis of one share of common A stock for

shares of

common

The stockholders

on

A

and/or

common

March 21 will vote

Price—$7.15

per

purposes.
Office
Underwriter—None.

& Co.

(formerly Charles D. Barney & Co.) handled sec¬
ondary offering of common B stock in 1926.

•

California Oregon Power

Co.
Feb. 13 it was reported company plans to issue and sell
in April or May $16,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.

Williamson

common

class B

$6.84

,

common

For Finest

214 West 39th St.,

President, announced that the
sometime between now and the summer of
1956, will probably do some additional financing. Pro¬
ceeds—For expansion.
Underwriters—The Milwaukee
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
& Share Corp. underwrote class A common stock offer¬
ing made last August.
company

Cribben & Sexton Co.
Feb. 27 it

reported stockholders will vote March 6
proposal to increase the authorized com¬
shares to 750,000 shares, the ad¬
ditional shares probably to be issued in connection with
future financing.
Underwriter—May be Hornblower &
Weeks, New York.
on

stockholders

on

a

l-for-7 basis.

inancial world knows

I

mportant

Delaware

undertake
first to

Price—

utmost

in

E

documents

Woodstock Uranium Corp., Carson City, Nev.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds

T

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: W. C. Langley &
Co. and Union Securities Corp. (jointly); Kidder, Pea¬

(jointly): Carl M. Loeb, Rhoades & Co.; Blyth & Co.
(jointly); White, Weld
& Co. and Shields & Co. (jointly); Lehman Brothers.
Offering—Expected in June or July.

Dolly Madison International Foods Ltd.
15 it was announced that Foremost Dairies, Inc.
intends at a future date to give its stockholders the right
Nov.

to

purchase

Du

Dolly

Madison

stock.

Underwriter—

York.

Mont Broadcasting Corp.

Aug. 10 it was announced that corporation, following is¬
suance on Dec. 2 to stockholders of Allen B, Du Mont

Laboratories, Inc. of 944,422 shares of common stock as
a

dividend, contemplates that additional shares will be
to its stockholders.
This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel
Du Mont Laboratories class A stock fi¬

nancing some years ago. Stockholders of Laboratoriei
Oct. 10 approved formation of Broadcasting firm.

on

sell

Power Co.

a

was

Duke Power Co.

aste

amply provided by-

its

(5/3.0)

announced company proposes to offer to
stockholders this Spring (probably to holders

was

common

May 10, 1956) additional common stock on a
basis; rights to expire on May 25. This would
involve 367,478 shares. Proceeds — About $9,000,000, to

of record

be used for construction

hndtcf(9ress, Inc.

Emery, Inc., Salt Lake City, Utah.

Wy-Cal Uranium Enterprises, Inc., Lander, Wyo.
6 (letter of notification) 273,000 shares of
capital

Established 1923

Dec.

(par 50 cents). Price—$1 per share.
Proceeds—
For mining operations.
Office—268 Main St., Lander.
Wyo. Underwriter—Valley State Brokerage, Inc., 2520

(5/7)

announced company plans to issue and
total of $30,000,000 of first and refunding mort¬

15 it

gage bonds due 1986.
Proceeds—To repay bank loans
and for construction program.
Underwriter—To be de¬

and

Office—Virginia Truckee Bldg.,




its

Allen & Co., New

l-for-25

Underwriter—Cayias, Larson, Glaser,

South State St., Salt Lake City, Utah.

company expects to
stock
financing, probably
stockholders. Proceeds—For construc¬
common

by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.; Stone & Webster Securities Corp.
Bids—Tentatively expected to be received on May 7.

the

xperience,

Skill

Nov. 21

stock

announced that the

some

common

Feb. 15 it

expenses.

Power & Light Co.

was

termined

Need

None.

mining

a

stock from 250,000

Sept. 28 it

Feb.

F

The

New

share.

Carson City, Nev.

was

approving

mon

Duke
-

Proceeds—For working capital. Office
—3500 Maison Road, Cincinnati, Ohio.
Underwriter—

—For

Quality Printing

Co.y Cincinnati, Ohio

common

Consolidated Water Co.

& Co. handled

(letter of notification) 20,666 shares of class B
stock (par $1) to be offered for subscription by

per

To reduce bank loans.

•

derwritten.

—

—

Co.; Chas. W. Scranton & Co,
Offering—Expected in June.
;
\

offered

that its

Feb. 20

stock

ing this proposal and also on changing the par value of
shares from no par for both issues to $2 per share
for the common A stock and $1 for the common B stock.
Underwriter—Dominick & Dominick and Smith, Barney

share. Proceeds—For general

corporate
York.

B

on approv¬

the

*

(letter of notification) 22,000 shares of

Proceeds

Inc. and The First Boston Corp.

treasury)

;

stock (par $5) being offered for subscription by commonstockholders of record Feb. 27, 1956 on the basis of one
new share for each 10 shares held; rights to
expire on

March 23.

l-for-10 basis.

body & Co. and Merrill Lynch, Pierce, Fenner & Beane

Gibbs Sewing Machine Co.

&

a

Underwriters—Putnam &

scribe for 10,000 shares of common A stock (now held in

March

Corp., Salt Lake City, Utah.
Willcox

preferred stock and offer to common
71,132 additional shares of common stuck

new

stockholders
.

on

Co.

Power

reported company plans to issue and sell

tion program.

common

Feb. 13

Feb. 16

was

ir Bon Ami Co., New York
9 if was announced company plans to offer to
A and common B stockholders the right to sub¬

(the

(letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share).
Proceeds
—For mining expenses.
Office--547 East 21st South St.,
gait Lake City, Utah.
Underwriter—Empire Securities

Connecticut
March 1 it

(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Harriman Ripley & Co. Inc.

price of the stock to be related to the current market
price at the time of the offering). Proceeds—For pre¬
payment of the remaining long term debt ($9,000,000)
which constitutes the balance of the purchase price of
the plant and facilities acquired from International Har¬
vester Co.; to reimburse the treasury for funds already
paid in connection with this acquisition and for prepay¬
ment on Feb. 2, 1956 of the 3%% promissory notes due
to May 1, 1960; and for general corporate purposes, in¬
cluding working capital and additions and improvements
to facilities. Underwriters—Goldman, Sachs & Co., New
York; and Fulton, Reid & Co., Cleveland, Ohio.
White Sage Uranium Corp.

Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co, Inc.; Glore, Forgah & Co. and Blyth & Co., Inc*
(jointly); The First Boston Corp.

Jan. 16, Frank A. O'Neill,

ratio

t

common

Price—To be supplied by amendment

construction program.

capital stock to stockholders of record March 6 in the

State¬

Price—At par ($1 per share). Proceeds—To start
dealer or brokerage business.
Office—921 Sims Bldg.,

stockholder.

expected

are

Bank of America, N. T.

stock.

Albuquerque, N. M.

(3/22-23)

March 7 this Bank offered 1,600,000 additional shares of

Western Securities Corp. of Hew Mexico

a

RR.

on March 22 or 23
the company of about $4,500,000
equipment trust certificates. Probable bidders: Halsey,
Stuart & Co., Inc.; Salomon Bros. & Hutzler.

j

(letter of notification) 50,000 shares of

Ohio

for the purchase from

Dec. 19 filed 1,950,000 shares of common stock

Feb. 13

&

announced that company may issue be¬

was

$35,000,000 to $50,000,000 of bonds. Proceeds—For

tween

$5,200,000 of

company,

Baltimore

system.

•:Western-Greyhound Racing, Inc.

Commonwealth Edison Co.
Jan. 24 it

RR.

sought ICC authority, to issue up
to $54,710,000 of convertible 4V2% debentures, series A,
due Feb. 1, 2010, which it proposes to offer in exchange
to holders of its outstanding convertible 4x/2% income
bonds on a par-for-par basis.

ceived from insurance

an

The First Boston Corp., both of New York.

(4/24)

Underwriter—Glore, Forgan & Co., New York.
16'

reported company plans early registra¬

was

undetermined amount of junior subordinated
debentures. Underwriter — Kidder, Peabody & Co. and

tion of

announced stockholders will vote April 19

-Baltimore & Ohio

stock (no par) to be offered in units of $100 of deben¬
Price—To be supplied *

tures and three shares of stock/

an

March 12 it

approving the creation of a new authorized issue Of

split.

bentures, due Feb. 1, 1988, and 615,000 shares of capital

sale of

it Commercial Credit Corp.

shares to 3,000,000 shares and effect a two-for-one stock

Jan. 26 filed $20,500,000 (UJS.) 32-year subordinate de¬

Texas

ed to be received on Oct. 2.

Inc.

$20,000,000 preferred stock, of which the company in¬
tends to initially issue $10,000,000, which would be con¬
vertible into common stock and may be first offered for z
subscription by common stockholders. It is also planned
to increase the authorized common stock from 1,000,000

Underwriter—None.

Westcoast

was

Houston,

sell
$30,000,000 of debentures. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc,; Morgan Stanley & Co.
Bids1—Expect¬

announced company will soon offer pub¬

Anderson-Frichard Oil Corp.

stock

Corp.,
an

Columbia Gas System, Inc. (10/2)
was announced company may issue and

$6,000,000. Proceeds—To acquire shopping centers. Of¬
fice—Minneapolis, Minn. Underwriter—Carl M. Loeb,
Rhoades & Co., New York.

West

•

Shopping Centers,

was

Feb. 15 it

licly some new securities in the approximate amount of

6%

Jan. 23

N. J.

was

announced

application has been filed
with the FPC for construction of a 565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers arvd Allen & Co., both of New York.

Washington Gas Ught Co.
15 filed 149,554 shares of common stock (no par) 1
American Gas & Electric Co.
being offeree! for subscription by common stockholders
Jan. 30 it was reported company plans to offer about
of record March 2, 1956, at rate of one new share for
$30,000,000 of common stock to its common stockholders
each eight shares held; rights to expire on March 20.
in June or July. Underwriter — To be determined by
Price—$37 per share. Proceeds—For construction pro¬
competitive bidding. Probable bidders: The First Boston
gram. Underwriters—The First Boston Corp., New York,
Corp. and Union Securities Corp. (jointly); Blyth & Co.,,
and Johnston, Lemon & Co., Washington, D. C.
Inc.
.

about March 15.

on or

was

of 150,000 shares of common

Feb.

stock

Price—In the neighborhood of $50 per
share. Proceeds—For construction program. Underwriter
—Union Securities Corp., New York. Registration—Ex¬

Air-Vue Products

Feb. 20

ferred shares, is alternative to the right to receive in¬
stead $100 per Prosperity preferred share.

before April 19 for 100,000 additional shares
on the basis of one new share for each

on or

common

10 shares held.

Prospective Offerings

In cash for each Prosperity preferred share. This offer,
which is limited to acceptance by 3,000 Prosperity pre¬

65

72 THAMES

ST.. NEW YORK 6

71 CLINTON ST..

NEWARK. N. J.

Leaders in Financial Printing Since

1923

Edo

program.

Underwriter—None.

Corp., College Point, L. I., N. Y.

Feb. 27 it was reported company plans to raise between
$1,000,000 and $2,000,000 through the sale of some addi¬
tional common stock through a group of underwriters.
Business—Aircraft floats and components.

Continued

on

page

66

66

Financial Chronicle... Thursday, March 15, 1956

The Commercial and

(1354)

f

Continued from page
•

El

Feb.

it

16

scribe
of

reported company plans to

was

stockholders of record April 4 the

common

on

stock

common

56,025 additional shares

before April 25 for

or

on

ing been definitely determined.
Loeb & Co., New York.

offer to its
right to sub¬

Dealer-Manager—
Registration—Expect¬

$5,000,000 through the sale of approximately
of mortgage bonds and about $1,000,000 each of
and common stocks.
Proceeds — To repay

ed March 15.
•

El

Feb. 16 it

reported company plans to issue and sell

was

preferred stock

20,000 shares of cumulative

(no par).

Underwriter—To be determined by competitive bidding.
Probable

bidders:

Merrill

Lynch,

Pierce,

Fenner

,

$3,000,000
preferred

&

Jersey Central Power

Beane; Salomon Bros. & Hutzler; Stone & Webster Secu¬

Feb.

it

6

& Light Co.

Co. and White, Weld &

t

reported company may in

was

May or June

New

Blair & Co. Incorporated; Equitable Secu- •*
1956, issue and sell $9,000,000 first mortgage bonds.
Securities Corp.; Kidder, Peabody &
Underwriter—To be determined by competitive bidding.
Co., White, Weld & Co., and Shields & Co. (jointly).
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Bids—Expected to be received up to 11 a.m. (EST) on
Brothers; White, Weld & Co.; Kidder, Peabody & Co.;
May 1. Registration—Tentatively expected April 10.
Union Securities Corp., Salomon Bros. & Hutzler and
rities Corp.;

Feb. 20 it

Power Corp.

was

Lynch, Pierce, Fenner & Beane (jointly);

Merrill

(7/11)

announced company

plans to issue and sell .? & Co. Incorporated.

$20,000,000 of first mortgage bonds. Underwriters—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co', and

General

March

2

special

Corp.

Acceptance

it

announced

was

situation could change."

considering

is

company

meeting 'to vote on authorizing a
new
issue of 80,000 shares of $5 cumulative preferred
stock (par $100) and on increasing the authorized debt
from $30,000,000 to $100,000,000.

Lehman Brothers;

,

•

General

American

.

March

it

12

held

of April

as

be

rights to expire

25;

announced

sell 12,000 shares

of preferred stock (par $25)<

Central Republic Co.,

May 9.
general

on

Proceeds—For

later.

Underwriter — Kuhn, Loeb & Co.,
Meeting—Stockholders to vote April 24 on

York.

approving

debenture

proposed

General Telephone Corp.

March 9 it

(4/20)

announced company plans

was

to offer

$55,000,000* of convertible debentures due

1971

to

up

to

$100

of

debentures

Proceeds

for

each

23

common

shares

Dallas

com¬

stockholders of record April 18, 1956 on the basis of

mon

—

Registration—Scheduled for March 30. Meeting
—Stockholders to vote April 18 on approving proposed
financing.
•'<
- /

stockholders

approved
stock

a

proposal

to

increase,

to

companies, the company expects to sell not more than
$15,000,000 in debentures.]
Underwriter—Kidder, Pea¬
body & Co., New York.
' \
+ Harvard Brewing Co.,

Lowell, Mass.

Bids

to 3 p.m.

to be

are

received up

the

purchase from

345,760 shares of

the

common

which represents 55.3%
and outstanding.

Department

as

Son;

&

Estabrook &

an

stock (par $1) of this company

of the number of shares issued

stock

issuance of 70,000 shares of common stock

as a

10%

dividend; and on sale of 100,000 additional common
$5,000,000 of preferred stock. Proceeds—For

shares and

construction program.

Underwriter—For common stock,
and for preferred stock, Dillon, Read & Co., New

none;

•York.
•

Feb. 4 it
to

its

was

announced

application has been filed
the FPC for permission to construct a 961 mile
pipeline system to cost $105,836,000. Underwriters—May
be Blyth & Co., Inc., San
Francisco, Calif.; and Scharff
& Jones, Inc., New Orleans, La.
an

with

Illinois

March 1 it

Power

shares of common stock (par $10).
writer—To be selected.
Meeting—Stockholders

Co.

&

Manufacturers

Traders Trust

Feb.

mined by competitive bidding. Probable bidders:
Stuart & Co. Inc.; The First Boston Corp.;

deter¬

Halsey

White, Weld

&

Co.

Inland Steel Co.

Joseph L. Block, President, announced that i
tubstantial portion of the required funds for the com¬
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
3,

will be derived from retained earnings and depreciation
reserves.

to

secure

However, he stated, it will also be necessary
large portion through public financing. It U

a




"

To

Underwriter—To be determined by competitive bidding.;
Frobable

Halsey, Stuart & Co. Inc.; The First;

bidders:

Kuhn, Loeb & Co.; Kidder, Peabody
Co.; Equitable Securities Corp.; Harriman Ripley & Co.^
Bids—Expected to be received on April 17.
Boston

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 biddings
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and
Drexel & Co. (jointly); The First Boston Corp.,

Dec.

Feb. 6 it

12

it

early registration of about
550,000 shares of common stock is expected.
Price—
Around $9 to $10 per share. Underwriter—Van Alstyne/
Noel & C©., New York.
was

reported

if National Fuel Gas Co.
March 5 it

was

additional

announced
company

common

--

that, if market conditions are

plans to sell to its stockholders

stock in order to raise a part of the

$10,000,000 new capital necessary to acquire additional
capital in the amount of $10,000,000, in order to provide
the subsidiaries with funds to carry on their 1956 con¬
struction

programs.

Natural

Gas
was

Underwriter—None.

Pipe Line Co. of America

reported company plans to issue and sell

1976.

Spring $35,000,000 of first mortgage bonds due
Underwriter—If determined by competitive bid¬

and

Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Harriman, Ripley & Co. Inc. and Glore, For¬
gan & Co. (jointly); Union Securities Corp.

Nov.

:

$25,000,000 of first mortgage bonds..
Proceeds.*
repay
bank loans and
for new construction./

about
—

ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp.„ (jointly).

be

*

Pennsylvania Electric Co. (4/17)
Dec. 19 it was reported company plans to issue and sell/
-

Co.

and

Underwriter—To

Beane,

Co.

&

Forgan & Co.

offered 348,480

late this

construction.

by

Kidder, Peabody & Co. and White,/
(jointly)i; Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;
Lehman Brothers and Riter & Co. (jointly); and Glore,^
&

Fenner

Weld

additional shares
of its capital stock (par $5) to its stockholders of record
March 9, 1956, on the basis of one new share for each
four shares held; rights to expire on March 26.
Price—
$20 per share. Proceeds—To increase capital and surplus.
Underwriter—The First Boston Corp., New York.
12 this Bank

Feb. 20 it

was

new

competitive bidding. Probable
& Co. Inc.; Blyth & Co., Inc. and
The First Boston Corp. (jointly); Merrill Lynch, Pierce,;

increase in the authorized common stock
from 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.

March

•

New

England Electric System

(4/18)

March 6 directors approved a proposal to offer to

stock¬
holders 834,976 additional shares of common stock on the
basis of one new share for each 12 shares held as of April
18. Underwriter—To be "determined by competitive bid¬
ding. Probable bidders: Blyth & Co., Inc;, Lehman Bros.,
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.

*

$20,000,000 of first mortgage bonds due-

bidders: Halsey Stuart

17 approved an

•

year

determined

be

—To

Under¬
on

(Minn.)

Proceeds—For construction program. Underwriter *

1986.

Bonding & Casualty Co.
announced that the company plans to offer
stockholders on a 3-for-7 basis an addi¬

tional 30,000

Co.

announced company plans to issue and sell

was

later this

Power

States

Northern
Jan. 19 it

was

reported company may issue about $25,000,000 of debt securities. Proceeds—To repay bank loans
for

Probable bidders: Halsey, Stuart & Co. Inc.;/
Glore, Forgan & Co.; The First Boston Corp.; Blyth &t

common

favorable, the

Houston Texas Gas & Oil
Corp., Houston, Texas

Feb. 29 it

*

by competitive >

Co., Inc.

if Montrose Chemical Co. of New Jersey/V

on

■

$15,000,000 of first mortgage

Underwriter—To be determined

bonds.

of preferred stock following approval by
P. S. Commission and clearance by the
Securities and Exchange Commission.
Underwriters—
Blyth & Co., Inc.; The First Boston Corp.; and W. C.
Langley & Co.
>

March

20

/'

;

reported company plans to issue and sell/

Feb.-20 it was

sell $12,000,000
the New York

if Hawaiian Electric Co., Ltd.
announced stockholders will vote March

r

Illinois Gas Co.

thXs summer $10,000,000 to

Co.; and Straus &

March 5 it

was

Proceeds—For

may

"'4'.■'

Northern

■

which

Corp.;

Pennsylvania Electric Co.

entirety,

consider¬
general mortgage}

time this Spring.

some

program

ton- Corp.

(4/4)

(EST)

on April 4,
by the Office of Alien Property, Department of Justice,
Room 664, 101 Indiana
Ave., N. W., Washington 25, D. C.,'

for

Z

of additional

bidding.

Maine

2,500,000 from 1,750,000
shares and the authorized preference stock to 1,000,000
from 350,000 shareAtalso a proposal that any issue of
debentures may include a privilege to convert into com¬
mon stock and permit the
company to issue warrants to
purchase common stock, provided the total that may be
outstanding at any one time does not exceed 600,000
shares.
[The company-expects to issue 23,000 additional
preference shares—5,000 for acquiring stock and prop¬
erty and 18,000 for cash. Having completed long-term
borrowing negotiations of $30,000,000 from insurance
common

Rupe

jv.

capital.

cost/approximately
$62,000,000 this year.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art"'^ Co. Inc.; Kuhn, Loeb & Co. and Union Securities
vrCprp. ("jointly);. Morgan Stanley & Co.; The First Bos¬

Long Island Lighting Co. (4/26)
Feb. 29 company announced that it plans to issue and

General Tire & Rubber Co.
24

-

1987

construction

Blosser.

York.

Feb.

Inc., Chicago, 111.

bonds due

Proceeds

and'sale

issuance

ing

.

held.

To purchase securities of subsidiary com¬
panies and for general corporate purposes. Underwriter
—Paine, Webber, Jackson & Curtis, Boston and New

authorized

.

24, E. B. Germany, President, announced that the
company plans the private and public sale of new secu¬
rities during the first half of the current year. Proceeds
-tTo retire indebtedness of company held by the RFC
and the Treasury Department. Underwriters—Probably

Scheduled for April 6.
•

<

Jan.

Registration—

issue.

Proceeds—For working

Niagara Mohawk Power Corp.
Feb. 27 it was reported company is tentatively

stock, to repay
Underwrite?—

Steel Co.

Lone Star

corporate purposes.
New

for/40,000 additional shares of capital stock (par $10) on
a l/-for-5 basis; rights to expire on April 17.
Price—To
be determined at special meeting to be held on March 29.

reported company plans to issue and

was

—To redeem outstanding 6% preferred
offered for subscription by common
basis of $100 of debentures for each 10 shares of common V bank loans and for improvements, etc.
stock

following two-for-one split-up and payment of a 100%
stock dividend, the company proposes to offer to its
stockholders of record March 30 the right to subscribe *

Corp.

Co., Taft, Calif.

Mutual Telephone

Kern

(4/26)
of
be
stockholders on the

Transportation Corp.

March 5 the directors voted to issue up to $25,000,000
convertible subordinated debentures, which are to

Price—To

if New England Trust Co., Boston, Mass. (3/30)
••
C. Rodgers Burgin, President, announced that:

,

Co., Inc., and The First Boston

Beane,
White, Weld & Co. (jointly).

Match 9

120,000 shares of preferred stock (par $100). Proceeds—
retire short-term bank loans.
Underwriters—Blyth

&

•<

The First Boston Corp.; Equitable Se¬

Kidder, Peabody & Co. and

To
t

;
•

Corp.; Merrill Lynch, Pierce, Fenner &

curities

Feb. 7 it was announced company
v

Halsey, Stuart & Co.

Probable bidders:

Securities

City Power & Light Co. (4/10)
plans to issue and sell,

Kansas

a

stockholders'

announced company plans to issue and sell ;•

In©r, Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Corp. and Wood, Struthers & Co. (jointly);

Blair

if Johns-Manville Corp.
March 9, Leslie M. Cassidy, Chairman,

Registration—Planned for June 14.

was

tive bidding.

said the corpora¬
tion is studying possibilities for expansion that could
Merrill Lynch, Pierce, Fenner & Beane (jointly); Leh¬
require financing, adding that the management had no
man
Brothers and Blyth & Co., Inc. (jointly); Glore,
definite plan for the issuance of additional stock other
Forgan & Co.; The First Boston Corp. Bids—Expected J than those
required for the two-for-one split but "the
July 11.

Co. (jointly).

$10,000,000 of first mortgage bonds during
Octoberof 1956.
Underwriters—To be determined by competi¬

V ' '

,

company

England Power Co.

3 it

Jaffi

rities Corp.; Union

Florida

announced

was

—

$3,850,000
short-term loans outstanding at Dec. 31, 1955, and for
expansion program. Underwriter — Blyth & Co., Inc.,
New York. Offering—Expected in April.

(5/1)

Co.

Electric

Paso

-

it

3

subsidiaries, Essex County

Kuhn,

—
•

plans to merge its
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 /
name of which has not as yet been determined.- Under¬
writer
May be determined by competitive bidding. •
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
k Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers; /
The, First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Jan.

if Jamaica Water Supply Co.
March 5 it was announced company plans to raise about

l-for-15 basis.

a

Stone & Webster Securities Corp.

Underwriter

England Electric System

New

quite likely that a major part will be in the form of debt
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬

-

(4/6)

Co.

Electric

Paso

65

19

it

was

(4/17)

be

of

determined

ders:

Kuhn,

-

reported company proposes issuance and

$9,000,000 of preferred stock
Proceeds—For construction program.
sale

by

Loeb

competitive
&

Co.:

W.

early next year.''
Underwriter—Tot

bidding. - Probable bid¬
C. Langley & Co. and

Qlore, Forgan & Co. (jointly); Kidder, Peabody & Co.^
The First Boston Corp.: Smith, Barney & Co.: Harrimartr
•

Ripley

&

Co.'Inc.

Bids—Expected to be received on

April 17.
*"

Portland

Gas

& Coke Co.

(4/19)

.

>

President, announced that
the company plans to issue and sell $16,500,000 of firstmortgage bonds. Proceeds — To redeem $13,150,000 of
4%% mortgage bonds and for conversion to natural gas
dperation. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co./
Inc.; The First Boston Corp.; White, Weld & Co.; Lehman!
Feb.. 24, Charles H. Gueffroy,

Brothers and Blyth

& Co., Inc. (jointly).

tively expected to be opened on April 19.

Bids—Tenta-'
Registration—

Planned for about March 23.

if Public Service Co. of New Hampshire
plans to issue and sell

Feb. 25, it was reported company

$8,000,000 of first mortgage bonds. Proceeds — To pay
cost, in part, of construction program. Underwriter—To
be determined by competitive bidding. Probable bidders:.
Halsey. Stuart & Co., Inc.; Kidder, Peabody & Co. and
Blyth & Co. Inc. (jointly); Equitable Securities Corp.;White, Weld & Co.; The First Boston Corp. and Coffin
& Burr, Inc. (jointlv); Lehman Brothers. Bids — Exr
ptected sometime in June.

Puget Sound Power & Light Co.
Feb. 15 the company announced that it estimates

that its

construction program for the
years
1956-1959 willamount to $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—

detwiiter—If determined by competitive bidding, may.
Stuart & Co. Inc.; The First Boston Corp."

include Halsey,

Volume

Number 5516

183

March

12 it

Jan. 30 it

expected
Proceeds—To sell¬

reported early registration is

was

of

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane.
\
y.

'
~

★ Schotz Homes, Inc., Toledo, Ohio
March 12 it
tion

with

SEC

of

Nov. 7 it

160,000 shares of common stock.;

Power Co.

Nevada

Southern

reported company plans early registra¬

was

the

.

'•'v./.V-

1956

announced company plans to sell in

was

program.-Underwriter—Straus, ^approximately $10,000,000 . of new securities (probably
p. $7,000,000^first mortgage bonda and $3,000,000 preferred ~
McDowell,: Chicago, 111.
•••, ;,t>'

'Proceeds—For expansion
•

Blosser

&

and

.

shuiton, inc..
March 12 it

;

Underwriters^—For stocks: Hornblower & Weeks,

gram.

reported company plans early registrar,

was

New

Proceeds—For construction pro¬

stocks).

common

Business

-

Corp., both of New York. W

""••»•

Sierra Pacific; Power Co.r

-;Feb. -16

it

reported

was

v,-* V

V ^

;

Jan.

?

78,220 additional shares of common stock, to its common
stockholders on a l-for-8 basis and 80,500 shares of new

>

preferred stock (par $50) first in exchange'
outstanding 6% preferred stock-(which is callable at
115). Underwriters—May be Stone & Webster Secu¬

cumulative

*%»'

Southern

Edison

California

-

'.-•.

Jan. 30 it

was

$40,000,000

of

first

<

bonds.

Underwriter—To be determined by

v

& Co.

biddifig...

its

May 23.

• v

V-,

-

,

of

be received

•>

to

a

difficulties involved in develop¬

practical commercial system.

some

pointed

-electronics

..

(record-keep-- j
'

s.t one

in the

'history cf1 the

must

which

formation

-

com¬

facturing plants.

amount of in¬

in the

lies

puter

commercial

and

scientific

between a

difference

"Another

ing is a .mile--, '■

t

office

(try.
the

-

equip-

A

scientific

permanent records..

,

;
,

"challenge *

■turers

cf

c-

•

rec-

Stanley

C.

Allyn

'

must keep in perma¬

the record of thousands
hundreds of thousands of

or

even

It

accounts.

must

pany

"first

added,
as

a

result of

j achieved in /the processing
{scientific data was fantastic.

cf

was

this

transis¬

tubes to the maxi¬

The com¬

possible extent.

is also designing the neces¬

the recognition of

bark

a*

upon

"It

will

expected that comparable results would soon be available on commercial applications.

The

is working in
related to the ultimate

company

three areas

more

revolutionary.

* ?

Application

Commercial

be

build

to

increasingly

development of an

system
for
business
evolutionary than

electronic

commercial

broad

becoming

is

clear that the

electronics development program.

"Many

i

results,
use

sary auxiliary devices to be used
with such a computer.
Each of
these these represents a considerable
essential differences between the developmental problem in itself.

"It

Commercial vs. Scientific Systems

\

will

of these accounts.

"Electronics," he
attracted attention

spectacular achievements of scientific and commercial com¬
the early 'giant brains' on scien¬
puter
which
led the National
tific
applications. The speed Cash Register Company to em¬

i

en¬

gain
space and at¬

computer

mum

an

To

computer.

greater speed, save
tain other desirable

many

<

developing

now

new

tors instead of

possible to

be

tirely'

new

?

quickly locate and read any one

equipment." '!
r

hand

'

■

is

NCR

system on the"

commercial

"A

\

r

of

needs

keep

nent form,

'

d-keeping

o r

•

other

faced bv '•

-man-ufa

system.

computer is not required to

It is alsogreatest

'ever

the

within

.

indus--;

v

>

the totally different
the
commercial field,

meet

"To

be stored

*

•ment

a

NCRs objective is

complete

electronic

system which Will justify its use
in commercial establishments on
a

practical basis."

use"

However,

»

for

scientific

use.

scientific

"A

computer

signed to do a great deal

is

of arith¬

metical computation on one
», lem.

*

prob-

be introduced
quickly because

A problem can

into the computer
'

de¬

cut

is

relatively

brief.

and output is a
consideration.
"Conditions
on
a
commercial

J Speed

of

input

secondary
•

.

and^/their

equipment.
"The

machines

chines

with

application are diametrically op¬




other

adaptation

these

All

opera¬

which
The

Be

sloppy

the

kind
new

as

when
combined with cash registers, ac¬
counting machines11 or adding ma-

of

Helpful

side,

a

Next

week

shapes up

as

likely

the most lucrative in
quite a spell for the underwriting
industry provided nothing hap¬
to

prove

pens

to

short-circuit any of the

for

backdrop

issues

such

Treasury

»

recorder and in some

the unit media reader,

negotiated

are

tions.

came

to market in January.

consensus

Ford

condition
the best
a run of

deal,

is

that

the

big

handsome piece

a

business in itself, was

ect

has

been

completed.

which does not make for

ma¬

recorders

data-processing machines.

"The tape
cases

,.

adding

and

for Bids

Due Up

'

registers, account¬

tape

of yield.

they figure on the mounting
future calendar to bear them out.

bidding
major offerings on Tuesday for two public utility
prepared
for offerings, both of the size that
market, involving a total of $35 should attract plenty of compe¬
million, and both public utility tition.
offerings, are due to go through
Larger of the two is Pacific
the competitive bidding process.
Gas & Electric Co.'s $25 million
The list of prospects is topped of first and refunding bonds, ma¬
by
Tide
Water Associated Oil turing in 32 years. Proceeds will
Co.'s $100 million of 30-year sink¬
put the issuer in funds to finance
ing fund debentures being sold to its construction program.
finance its new refinery and to
4 Narragansett
Electric Co. #is
provide
funds
for acquisitions
sending. $10 million of 30-year;
and repayment of bank loans.
first mortgage bonds to market
Close
behind in size is Scott and will open bids the same day
Paper Co.'s $98.7 million of 15- to provide funds for paying off
debts
and to reim¬
year, convertible debentures short-term
which will be offered first to its burse the treasury for outlays for
stockholders
to
preserve
their new construction.
'•.
,1
pre-emptive rights, but with a
All
That! Glitters
banking
group
standing by to
take
up
any unsubscribed por¬
The investment banking indus¬
tion.
try is beginning to take an odd
Whirlpool-Seeger Corp. has $30 glimpse at its books as the first
million of debentures slated for quarter rolls
to an end.
And,
public offering while West Coast what a great many houses see is
not as pleasant as it might be.
Transmission Co. Ltd., will be in
the
market the following week
They are finding that results
with $20.5 million of debentures probably will not be as good as
and 615,000 shares of stock to be
they were a year ago, both in
offered in- units of $100 deben¬ spite
of, and "because" of the
tures and three shares of stock.
huge Ford Motor Co. stock deal

to

is." the

second

of National cash

ing

auxiliary

.".7

comparatively few figures are ininput devices for"computers and
volved.
The final answer to be"

j taken
..

computers

thing better in the way
And

Banking groups will be

Considering the robust calendar

'

'

to the persistent hope *o£
institutional investors for some¬

of
responsible
insight for the ensuing week, ob¬ for a "backing up" of other deals
servers
would feel better about that would normally have reached
things if the secondary market market in the period. As always
for investment issues perked up
happens when a "big one" comes
a little.
along, it drives people out of the
market at least until such a proj¬
The list,has been leaning a bit

of

such expectations did
equipment on
f not take into consideration the tions.
great difference between what is
'
I
"The first is general and specific
required of a commercial elecresearch in the field of electronics
tronic system and one designed
and the manufacture of electronic
<
•

bit

a

performance re¬

charge the poor

cently

situation, by far

Would

electronic
commercial applica-?

widespread

scheduled

,

'

are

surveys

add

Under¬

l-for-10 basis about April 24.

Registration—Expected March 27.

"

:

its

shares of com¬

Only two of the
currently
being

needs in different

being conducted
in many lines of business such as
department stores, public utilities,
insurance companies and manu¬

sive

devices.

;

a

route.

of business and the prac¬
tical application of electronics to
their accounting^problems. Inten¬

different design,
emphasis on the
of input and output

importance

to

data-processing

>

of system

to

And

types

but, places, new

'application of ?

on

writer—None.

market.

the

"The third is the thorough sur¬
vey

of

computer

a

•

"the

that

stock

mon

adjuncts corporate business now

point of original en¬

other type of

machine.'

out

.

stockholders 463,641 additional

common

about April 17. Under¬

for

received

Tentatively scheduled for
^J ri

—

if Wisconsin Electric Power Co. (4/24)
March 8 it was reported company plans to offer to

of spice to
"the bulk of
try and whatever equipment is the $284 million of new debt se¬
used for final record processing. curities on the calendar are slated
This will be either a computer or to be handled via the negotiated

discussing

pany,

(jointly). Bids—Expected to be

Registration

April 24.

March 27.

electronic systems. They
serve
as
an
automatic link

between the

the challenge of posite. Here we have relatively
electronics for record-keeping little computation, but thousands
purposes, S. C. Allyn, President of of items to process instead of one.
•the National Cash Register Com¬ This condition not only demands
In

ley & Co. Inc.

-

many

will

President contrasts the diametrically
opposite demands made by business and science upon com¬
National Cash Register

puters in explaining the greater

Glore, Forgan & Co.; The First
Corp.; Union Securities Corp. and Harriman Rip¬

Boston

stock on the basis
held as of about

chines will be important

> i

,

Lynch,

Hutzler (jointly); Merrill

Pierce, Fenner & Beane;

writer—Hayden, Stone & Co., New York.

^

Underwriter—
bid¬
Kuhn, Loeb & Co. and
bonds.

(jointly); Lehman Brothers

Corp.

Salomon Bros. &

and

|

issue and

by competitive bidding. Probable

Securities

American

share for each four shares

new

one

Co. (4/24)

reported company plans to

was

Halsey, Stuart & Co. Inc.;

ders:

announced company plans to'offer to
stcckholders the right to subscribe for

common

Practical Commercial Electronic Usage

ing

(4/5)

it

To be determined

May

offer in

may

Corp.

$30,000,000 of first mortgage

sell

company

Envelope Co.

basis/ Price—To be

Co., Inc. and The First Boston

8

J;

additional shares of capital

if Wisconsin Electric Power

Missouri

April 4; rights to expire on or

.

y.'

,.

and surplus.

March

:

Francisco, Calif. J4/9)
Bank plans to offer to its

stock
determinedl
on April 5. Proceeds—To increase capital
Underwriters—Dean Witter & Co., Blyth &
100,000

by directors

Pro-

on

States

announced

was

issue and sell

program.

123,046 additional shares of common

Inc.; Lehman Brothers, White, Weld & Co. and Union

on

may

7 .it .was

March

Inc.; Blyth & Co.,

Securities Corp. (jointly). Bids—Expected to

V

company

reported

it

8

(par $20) on a l-for-4V2

(jointly).

United

program.

competitive

Probable bidders: Halsey, Stuart & Co.

March

collateral trust bonds.
and for construction
program., Under writer^To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
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

$£•' For

Proceeds

construction

if Wells Fargo Bank, San
stockholders

$10,000,000 of first mortgage bonds.

was

Pressprich & Co.

Peabody & Co.j R. W.

j,/

Hutzler; KidderK

Stuart & Co. Inc.; Salomon Bros-. &

sey,

—

plans to issue and sell

and

loans

>■
pub¬

$35,000,000 of first mortgage and
Proceeds
To * repay bank loans

(5/23)

company

mortgage

bank

of

reduction

reported

reported

was

it

15

Feb.

first and refunding mortgage

Southern California Gas Co.

it

18

Union Electric Co. of

bonds.-Proceeds—For con¬
struction program. Underwriter-^-To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc.; The First Boston Corp. and
Dean Witter & Co. (jointly); Kuhn, Loeb & Co.- Bids—
Expected to be received on April 17. - ,

St., New York 5, N. Y., for the purchase from
the company of $8,310,000 equipment trust certificates,
at 44 Wall

Underwriter—To be
determined at competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities'
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

March 2, R. E. Fife, Financial Vice-President, announced
that the company plans to issue and sell $40,000,000 of

.1

7

.

;

(10/1)

Tampa Electric Co.

v-ceeds—For construction

(4/17)

Co.

,

announced company' plans to* oiier

was

around Oct. 1,

-

and Dean Witter & Co. if exemption from

competitive bidding is obtained. -5.r „-<*-• * >

t

Feb.

for

rities Ccrp.

16 it

V

;

Beaumont, Texas

Porter-Stacy Co., Houston, Tex.
«

(EST) on March 21,,

to noon

be received up

will

series G, to be dated April 1, 1956, and to mature in 15,
Calif.;
Bonds, -equal annual instalments of $554,000 each from April lf:
'1957 to April 1, 1971, inclusive. Probable bidders: Hal-*
~

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—

;;,

is planning to offer

company

Spencer Telefilm Corp.,

.

•Underwriters—Kidder, Peabody & Co. and Lee Biggin-*
son

.

"Old -Spice."

Manufactures

—

(3/21)

if Wabash RR.
Bids

and

first

of

York; Wiliam R. Staats & Co., Los Angeles,
First California Co., San Francisco, Calif.

.tionof 100,000 shares of class A stock and 100,000 shares -and
of class B stock, part for company , and part for sellingi
may be placed privately, y
stockholders.

announced company plans to

was

$20,000,000

$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:

200,000 shares of common stock.
ing stockholder. Business—Manufacturer of small trac¬
tors and shovels. Underwriter— Granbery, Marache

Co., New York.!

issue and sell
refunding mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. 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.

Feb. 6 it

offer

reported company may in the Fall

was

(9/25)

Virginia Electric & Power Co.

Counties Gas Co. of California

Southern

★ Schield-Bantam Co., Waverly, Iowa

67

(1355)

The Commercial and Financial Chronicle

...

as

With Hugo

looms ahead.

issues

have

slightly heavy and the same goes
for

empts,
flect

eorporates

tax-ex¬
too re¬

lack of sustaining

demand.

the

a

general

while

Observers

are

run

of

disposed

to

Schlick

(Special to The Financial

been

MILWAUKEE,
Nell is now
A.

Schlick,

National

Chronicle)

Wis. —Earl

O.

connected with Hugo
Jr.,

Bank

First

Wisconsin

Building.

March 15, 1956

Financial Chronicle... Thursday,

The Commercial and,
68

(1356)

Boston Fund

appoint¬

Malcolm B. Smith was
ed Secretary

Investors

Inc.,

Company,

has been a secu¬

since

1948,

with the Company
after receiving his
Harvard

in Economics from

M.A.

three

in the Army

years

nation in purchases of openduring 1955, according to a
special regional sales survey released by the National Association
of Investment Companies.
Purchases by residents of New iYork,
Pennsylvania, Massachusetts and Illinois followed in that order.
investment

1955 sales of

investing! for

j

balaneed mutual investment fund,
the primary objective of which is
to provide an investment in a diversified group of bonds, preferred
and common stocks selected be-

|

National Dividend Series is a

I
I
;

yield possibilities in relation to

year.

states in volume

tively smaller gain of 27.5% over the preceding year dropped to
fifth position. The previous year's survey was based upon sales

or:

Securities &

National

?

Corporation

Research

I
I

Established 1930

Broadwoy,

New

York 5, New York

1954

over

*

has

The

public

T'i"

United

of

States.

-

also reveals a trend of rising sales of open-end
shares to residents outside of the continental
Investors in foreign countries purchased a total

$250,000, while residents of U. S. Territories and
purchases from $1,984,000 to $5,543,000.

Possessions

increased their

P»me

turnasl«r«e

I

nlNCOME

|g

without

&

ner

Woods,

on

fund
your

is

available

from

investment

Fenner

Street, members of the New York
and Midwest Stock Exchanges.

&

Beane,

dealer,

(Special to The Financial Chronicle)

CLEVELAND, Ohio-James

is:? now

B.

with

connected

McCarley & Co. Incorporated. Mr.
The Parker Corporation /
200

Berkeley Street

Boston, Mass.

Sparks

Hall

Ball, Burge & Kraus, Union Com¬

was

tative
r

formerly local represen¬

for

Corporation

Carolina

with

Securities

which

he

Building, members

merce

New

had

York

and

Exchanges.

been associated for many years.

of the

Midwest

/

A balanced mutual fund
300

a

Kulp

Mr.

well-managed and

companies will
good profit.
said that

housing starts

no

residential

slowed down mod¬

erately to what is

believed to be

shows that 29.1%

and

most important

out

upsetting

with

70.9%

in

common

This compares with 27.1%

securities

fixed-income

The report

v

notes that

and

among

the

compared with a year earlier, is
for profit-sharing, pension
and benefit plans.

shown

During the year there was also
increase of approximately 25%

an

in

number

the

of

shareholders

Stock using the fund's Cumulative In¬
vestment
Program for reinvest¬
of

income

the

omy..;:.-!,;",'
slack in

The

companies
by other
who have been

offset

fully

been

steel

!':'r S",
demand for steel

automobile

from' the
has

of all, with¬

general econ¬

consumers

unable to obtain,

sufficient quan¬

current

production and

for

tities

dividends

and

common

mediate

hold well for the im¬
great sup¬

future. .The

porting factors in
ord

•

construction

spite

a

activities

(de¬

decline in residential hous¬

ing) and record
for

maintaining the

at* peak levels are rec¬

economy

plant

business spending

and equipment.

reasonable current
possibility

Diversified Investment Fund, Inc.

long-term growth of principal.

STOCK

will

ably

Fundamental Investors, Inc.

investing in

bonds, preferred and

stocks selected to provide

a

in which

doubt earn a

it

automobile year—

good

competitive

sales

COMPANY

income with conservation and the

is

year

a

cash, bonds and preferred

in

ment

INVESTMENT

of

a

still

of

below last year)

the

follow

periodic investment of other sums.

over

17%

holdings

Jan. 31, 1956,

in

Dixie Terminal

is

rate

current

the

(about

replenishment of inventories. The
than $18JMfe,Q0OA. A* particularly steel operating rate remains
marked proportionate increase, as around 98% of capacity and prob¬

with

associated

that

to

Mr. Herron was previ¬ fund's shareholders are some 2,000
fiduciary and institutional inves¬
ously with Hill & Co.
tors who hold-shares Worth more

McCarley

become

of

Building.

HICKORY, N. C. —William A.
has

block

in

industry

important

large,

prompt balance.

of bonds, a sustainable long-term rate. All
preferred and common stocks very these developments occurred with¬
much along the lines followed by
out
seriously denting either of
your fund."
these big and important industries
The fund's list of investments

stocks.

,

Hall

large

intends

contemplates

stocks,

Lynch Adds

(Special to The Financial Chronicle)

each

prospectus

a

Herron

Fourth

320 North

of

CINCINNATI, Ohio —Ralph P. cash at the close of the previous
with
72.9%
in
common
has
been added to the year,
r(A\
staff
of
Merrill
Lynch, Pierce, stocks.

LOUIS,' Mo. — John K.
is now with Yates, Heit¬

ST.

the Ford Founda¬
just completed the

balanced investment policy which

on

(Special to The Financial Chronicle)

Chronicle)

Nimock

Hall With
A

Merritt

Heitner

(Special to The Financial

££

fund

W««ual

k.

He

At

announced

been

was

Joins Yates,

sale

Foundation

$10,320*,000 in fund shares last year, compared with $1,898,000
in the previous year.
Purchases by Canadians rose from $85,000

Incorporated
Income rand

41.6% to 77.5%

diversifying its investments. It

has

of

to

again being demonstrated by
readjustments
which have
been under way in recent rronth3
is

Ford Motor stock for the purpose

investment company

^elected

been

with respect to

largest increase in 1955 took place

survey

Com¬

' the

-

recent

tion which has

65.7% to $6,720,000.

up

Established291
5

•

months, there
widespread
publicity

"During

in New Jersey, up 69.5%
to $23,405,000 from $13,805,000.
Other states showing substantial
pains in purchases of mutual funds were Montana, up 67.9% to
$8,983,000; Rhode Island, up 66.8% to $6,622,000; and Mississippi,

Investors

'

,

,

also observes that:

showed increased purchases of mutual
1954, according to the study. Delaware
exception, with a decline of 3.7% from $1,035,000 to

Every state but one

The

Incorporated

the basis of the present

of these endowment accounts.

$997,000.

'

'1111'

on

stocks range from

fund shares last year over

ojj

Investment

Fund's

holdings of 42 of the and sharp cut-back < in auto pro-*
country's larger colleges and uni¬ duction this winter to the rate of
versities
showing that common sales appears to have brought this

funds.

the

executive

ington

Manhattan Bond

FUND

Fund, Inc.

U. S. mutual fund designed to pro¬

vide

a

A mutual fund

diversified, managed investment

in stocks selected on the basis of pos¬
sible

participation in Canada's growth.
a free booklet-prospectus by

oompanies selected for the possibility of

BULLOCK

Managed and Distributed by NORTH AMERICAN

Established 1894
ONE WALL STREET,

Russ

NEW YORK 5

Building

•

SECURITIES

COMPANY

San Francisco 4, California

Prospectuses available from Investment Dealers or the
"Investment

above

Company Managers since 1925" -

Name.

Address.




Diversified Growth Stock Fund, Inc.

long-term growth of income and principal.

mailing this advertisement to

CALVIN

investing in diversified

stocks of well-established

common

Send for

Wholesale

,

economist, who i3
director of Well¬

This leading
also

vestment

of total 1954 sales of $862,817,000 re¬
ported by the Association's 117 mutual fund members. Figures
for both years are reported on the basis of net proceeds to the

was

ness

companying tabulation of the

figures represented 98.3%

J

net

year,

In his letter to shareholders,
in the most hijghly boomed areas—?
Henry T. Vance, President of the
automobiles, residential housing
fund, calls attention . to an ac¬
and consumer credit.\ The prompt
in¬

was

j

J
j

Fund, stated in a review of busi¬
conditions and prospects.
;

$121,457,845, with the

shares.

only one switch in ranking among the leading 10
sales.."Massachusetts with a gain of 57% in sales
moved up to fourth place, while Illinois, with a rela¬

There

and

may

were

earlier

according to the survey

trend established in the previous

j

information

taincd from your

120

investment

be ohinvestment

the risk involved. Prospectus

dealer

I

close similarity to the

a

last

mittee, points out that 1956 con¬
to be regarded as a year
April, 1955.
of consolidation, or in other words,
At the end of last January, net
a
year in which a base may be
asset value per share was $15.74.
formed from' which the country
Adjusting this figure for the yearcan resume
its long term growth
end capital gains distribution of
and expansion;
q;V*!.0 Vf ;•.. •' :
57 cents, a share, the asset value
The Wellington executive stated
was
equivalent to $16.31 which
compares
with
$14.67
a
year that the flexibility of the economy

second with purchases of

regional sales pattern of 1955,

The

shows

of

tinues

with $37,410,000.

high current

of $135,446,508, repre¬
8,602,950 shares owned
31

continue un¬

plans will generally

interrupted by short-term political
considerations,
A.
Moyer Pulp,
Vice-President
of
Wellington

on

equivalent of 8,278,342 shares out¬

$45,568,000,
$40,479,000, Minnesota with $38,999,000 and Florida

Michigan with

is believed that long

standing, all figures adjusted for
the 100% stock dividend paid in

v

Rounding out the top 10 states in dollar volume
were Missouri with $50,376,000, Ohio with

assets

Jan.

assets

of the national total,

funds

in

net

Consequently, it
term business

business factors.

its

of

by more than 26,500 investors.

$165,913,000, or
followed by Pennsylvania with $72,176,000, or 5.9%; Massachusetts with $67,751,000, or 5.6%; and
Illinois with $60,630,000, or 5%.
New Yorkers were

date

On

:

total

shows

that

invested $213,397,000 in mutual
funds last year, accounting for 17.7% of total national sales. This
is an increase of 44.2% over California investments of $147,973,000
;

close

Jan. 31, 1956.
annual report, the

24th

its

sented by

open-end company members.

13.7%

INCOME?

other

In
fund

based upon sales figures representing 95.3% of
$1,207,458,000 reported by the Association's 125

■

the

at

latest fiscal year on

Californians, the survey shows,

Signal Corps.

of relatively

shareholders

shares

company

The survey is
total

in 1954.

cause

Long term business planning in
of the largest
country, re¬ recent years has tended to grad¬
ports new highs in total assets, ually minimize political considera¬
shares outstanding and number of tions and emphasize economic and

California investors again led the

from

1943 and

College in

following

the

spent

graduated

He

University.
Darthmouth

«

in the

mutual funds

York Second

California First; New
end

analyst

rity

$135 Million

RICH

,

Boston Fund, one

who

Vice-Presi¬

of

office

the

dent. Mr. Smith

ROBERT R.

By

Smith

succeeds Leonard F. Howard,
retains

Ignores Politics
Kulp Says

it was

Mr.

yesterday.

announced

Mutual Funds

of General American

Business Now

Assets Now

Personal Progress

Representatives: Boston •Chicago* Dallas • Los Angeles • New York 'Washington,

D.C,

Prospectuses available on
mutual funds through

these
local

investment

firms,

or:

HUGH W. LONG AND COMPANY
INCORPORATED

Elizabeth

3,

New

Jersey

Net
t/V""

per

Reports
of

assets
—"Y"

~

Bullock

Fund,
-j"L~:

a

mutual fund managed by

Calvin

Bullock,stoodat$27^96,Jan. 31, 1!95>> accodin:g .o

Ltd.,

Equity Corporation for the year
Street Investing Corp.'s
share asset value was $21.71 at ended Dec. 31, 1955, shows net
assets at that date equivalent to
year-end, up about 11%
from
$19.49 a year earlier, and an in¬ $237.80 per share of $2 convert¬
ible preferred stock
(preference
crease of 15% with the December
in liquidation $50 per share and

distribution of 74 cents from tax-

Securities Salesman's Corner

accumulated

By JOHN DUTTON

dividends), and $5.18
share of common stock. Com¬
785 on
7gl at year.end were 27% greater ■ parable figures for Sept. 30, 1955,
were $232.07 per share of $2 con¬
rhat
'
than $64,137,866 at the end of vertible preferred stock and $5.04
period ended on that date.
^
ioca
Hiphpr market value of inl Of the assets, 85.92% were ln-vY5?*
,S7,^
i * r» I 1U per share of common stock.
ab,e gain taken

into account

net assets of $81,646,-

Record

per

You Can Have the Kind of Business
That You Sincerely Want

^

in

vested

stocks;of 95

common

vestment holdings, Mr. Randolph

with 7.98%" said. accounted for $7,700,315 of
in Government bonds.""
' the increase Funds received from
.These-investments, included purchases of shares by investors
substantial : holdings 1 in i leading totaled $7,731,751, and assets of a
growth industries; such as atomic ' private investment company acfemeVgy automation, chemicals,v..quired . in exchange^for Broad
electronics, guided missiles, and Street Investing shares-amounted
jet/; propulsion.
Individual com- to $458,299.
/. v. .
7-S
panies selected are those which
appear to have able management ;;J[
ASSCtS i
and .promising long-term appre. • • -<-•
•'v<
enterprises,

business

,

Portfolio changes

quarterly
of

chase

"'At 1V#*W TTiaTv*
last *
^
^
o

possibilities.

ciation

since the

report included pur5,000 shares of Atlantic

Refining, 1,000 shares of Ford Mo2,000 shares of Royal Dutch
Shell, and 2,600 shares of Stauffer
Chemical.
Sales
included 5,000

tor,

4,000 shares
and 3,400 shares

shares of Filtrol Corp.,
of

Pfizer,

Chas.

of

Sylvania Electric Products.

Tri-Continental
investment

net

and

gas

Inc.

sales

in

rose

more

diversified

closed-end

The rise in sales
accompanied by a drop
iniredemptions. For l9te such re¬

' January, 1954.
has

First Investors Corporation, dis¬

tributors of shares of most mutual

lington Fund and Mutual Invest¬
ment Fund, Inc., reports Jan. 1-31
sales of $9,250,746, up $1,462,345
President.
The
from the $7,788,401 reported for
at year end com- the same period in 1955. This is

^

Randolph, Chairman of

^he

Board

was

and

increase

an

of

close

to

19%.

Its

representatives working out of 13
branch offices, sold mutual fund
contracts in the year 1955 calling
for total payments from investors
of

over

$100,000,000.

Eugene Catron Dir.

are

now over

the end of the last
The
ieverage>
Mr.
Randolph
March 31, 1955. The kr0Ught ouy was eliminated
Dec. 31, 1955. Quarterly Re- through a build-up of net cash

new

shows^sales for the nine

port

an(j senjor securities in the porta
year-end
value of
pared to liquidations of only $2 $51654 006, an amount larger than
million, which indicates strong in- the $53 597^00
total claim on
vestor confidence in the industry agsets
of Tri-Continental's
own
and the Fund. The net asset value outstanding debentures and preof

months

per

$8.7. million

as

com-

share, adjusted for the two-.
split in July increased

for-one

*

Eugene H.

Catron, Shields and

Company, New York City, has
been elected a director of the In¬
ternational Breweries, Inc. of De¬

K

at

eystone

in

Anthony With
Nat'l Sees. Research

F. W.

W.

son,

Jr., Pres-

dent.

thony,
will

An¬

who

•your
ten

Funds.

Name

me

number of years.

1

9, Mass.

are

.....

Address




upon

request

—

Lord, Abbett & Co.
New York

—

Chicago

arbitrary

upon

his
not suggest,

did

He

hold

not

conferences,

a

he

.

,

result he practically ruined
the

of

finest

organiza-

sales

knew in the in-

ever

£ 3

Iff®?.'
-1

a community of ob-

them well, compensate them
£ai5-y' j?:3^110 fav°J"\tes, and mark
*1^ 3C^ 3
white the sort of
,nrk+u:°ymf
contracts that leave
any°ues later judgtherein a disagreement as
rewards are concerned.
pl3£ .ga™es Wlth the
.

u

+

n

mttm

k

RpjJ^
Ap^?l
.

hired as salesmen.
5[?lag a1.?laa s

.

^ ^ they are not going to like it,

?hnpdvn^\hf wlUf you someday if

they leave you to go .somewhere

>*
....

else, or establish their

own

or-

ganization
busfhess

No
one

two

or

ever

grew

because

did all the think-

men

jng, an the working, and made the
iion

their

best

Atlanta

—

finally
but the

They

men.

hnz-j

n w-» r»

kaam

w an n

If

you

build up

operating

are

securities

retail

a

wish to
loyal an(I cooperative
and

firm
a

you

organization here are some of the

THAT'";SHOULD

IN

GOES

THINKING

THE
ON

TOP

THE

AT

OF YOUR ORGANIZATION:
If

selling

are

you

service, if

a

believe that your customer's

you

welfare

first,

comes

if

share of the profits

s

is

ness

You
you

Fund

Los Angeles

a

can

teamwork

A busi_

proposition,

have the kind of business

want... if v
you really want it.
v

With Columbia Sees.
(Special to The Financial Chronicle)

^BEVERLY

HILLS,

Calif.

—

staff, of Columbia Securities
ComPany Inc. of California, 225
South Beverly Drive. He was pre-

^ously w,th Shelley> Robel'ts &

are

you

then you are
to

secure

first of all only going

the services of men for

sales organization who also
this.
You are not going

your

believe
to hire
and

opportunists, manipulators,
who will cut corners

men

their 'clients

with

with

or

policies of fairness,
and
high standards

your

competence
of business

ethics

hire

you

MEN

Have You Considered

AS

SUCH

OR¬

FOR YOUR SALES

that every person

cooperate

willingly

make your

ELECTRONICS

ers,

business relations more

stenograph¬
cashiers, clerks, etc. But you

let everyone
SALESMEN
DIRECT
RELATIONSHIPS WITH YOUR
CLIENTS are in a key position
to
either make or break
your
business when it pertains to serv¬

are

also

going

know

that

WHO

YOUR

results,

and

the

ing day in and day out.
are

not

You

can

invest in

the shares

assisted,

FUND, INC.

^

Get the

Company from
dealer

factor

that

I

your

investment

mail coupon to

MANAGEMENT
135 S. La Salle St.

Chicago 3, III.

their

ization will suffer.

and

or

TELEVISION SHARES

If these
and

-

booklet-prospectus about the

confi¬

considered and often
heeded, and if they are not en¬
couraged, then your whole organ¬
third

through

of;

TELEVISION-ELECTRONICS

NAME.

suggestions

The

diversified group

a

of electronics securities

THE

important employees in the chain
of contacts which you are build¬
men

Investment Medium?

to

HANDLE

the

as an

to

effective, such as your

most important

believe will enable

I.

j£vfng ®priIsrJlas been added to

building an organization that can
be respected in your community,

customers hold
entire organization. Your
salesmen are your most vital and

objectives of this Fund
possible long-term capital and
growth for its shareholders.

Prospectus

—

to

dence which your

income

d 153

tried

He

for your

Investment

|~« v»*»»

did

ice,

Fund
2

prospectuses

force.

should

Sherman,

A Common Stock Investment

describing
Organization afld the shares of your

Please send

back

to make certain

headquarters

COMMON STOCK FUNDS

90 Congress Street, Boston

down"

"look

to

force.

cooperate with them, and build a
+P
unity ln your organiza*]a that comes from mutual

GANIZATION then you are going

his

make

Affiliated

Company

falling

THESE

Custodian FuncL

The Keystone

sales

up

If

Mr.

a

BOND, PREFERRED AND

inclined

was

PREVAIL

per

1955.

during the day, at morning,
and evening. Written i]eports of calls were required by a
salesmanager who had the confidence of the partners of the firm,
noon,

the

^hildren. Work with jthem,

of
re-

made

THAT

in

the

to

busi-

a

But if you believe that channelling the savings of the people
into productive, sound, and growlnS corporations, is a high calling,
then hire men who also believe
this . . . and don't treat them

are

group

a

asked

were

ATTITUDES

troit.

year's end. Asset
$1,000 of the com¬ Texas, has
F. W. Anthony
been active in
pany's $1,872,000 debentures was
business and
$9,109, and interest on debentures
was
earned more than 8 times the investment field in Texas for
assets

coverage

salesmen

port practically every move they

/i

Inc., as net assets totaled $17,051,975 on poration as a wholesale represen¬
tative in Texas
net as- Dec. 31, 1955, according to the
and Okla. for
sets of $21,803,173.96 or $15.57 per company's
1955 annual report,
the National
share. This compares with $15 per published recently. The total for
Securities Se¬
share at the inception of the fund the same date a year earlier was
ries of mutual
on Feb. 3, 1955.
/ " '
' $14,577,125.'
funds, it was
As of Jan. 31, 1956, the investNet asset value per share of announced
by
ment fund, had 76.3% of its net common stock rose to $27.06 from
H. J.
Simonassets in stocks of life insurance $22.65 on Dec. 31, 1954. After ad-

of the company's

ness.

damage had been done.

31, 1956, reported

resented 88.76%

you'll have that kind of

some

attempts to
into straight jack-

who

people

many

make

belonged to

once

from

must

ability.
I

nothing"

appeal to "something

profit from a small play, then hire
salesmen who think that way and

than
upon

troy their enthusiasm and creative

salesmen

upon an

f°r

he

got a new salesmanager

Eugene H. Catron

Anthony has joined Na¬
tional Securities & Research Cor¬
Carriers & General Corporation

Common stock investments rep¬

,

rely

ets of conformance will only des-

of

F.

22.6%.

its, if you are an opportunist, if
you will handle speculative stocks
almost exclusively wherein you

Any

men

TO

partners found out the reason for
the trouble they had lost several

cfork

companies, 22.9% in U. S. Gov-justing for-a distribution of 72
ernment obligations, and 0.8% in cents net securities profits during
the year, the asset value gain was
net cash and receivables.

looks

to

best

WISH

If you want quick prof-

vestment business and before the

Life Insurance Investors,

of Jan.

put these

tions that I

CLOSED-END NEWS

ec*

The

As

ierrea slocr

$12.10 on March 31 to $13.61

from
on

fprrpri

BUILD.

SECURITIES

YOU

wh° are nothing more than gamwho biers seeking to make a ^quick

one

that

order

individualists.

one

strongest position in many years.

year,

BUSINESS

creative

a

he

task

,

$30 million at
fiscal

be

demanded.

^

$40 million, up from

money.

he

$2.70 preferred stock. These cornTubes, Ltd.,. pared with $11,626 and $236.71 at

_

.

in

sales

the close of 1954.
A moderate change of invest20,000 shares of Simpson's, Ltd., ment emphasis during 1955, Mr.
and 5,500 shares of Algoma Steel Randolph
disclosed, resulted in
Corp.
the elimination of the leverage
influence of the Tri-Continental
Gas Industries
Fund^announces cap^ai structure, and the corpothat total net assets of the Fund ra^on
ended
the
year
in
its
,

which

perform

by

shares of Calgary & EdLtd., and sale of

j

TYPE OF RETAIL

demands which he made upon

Corp.,

monton

firm to build abound, satisfying business, is to know what
any

for his lack of understanding of what makes
good
salesmen tick, his inability to inspire, lead, and gain cooperation,

Mic Mac Oils Ltd., "500

and 7,000

must

routine

a

make

the investment company had $13,Major changes in the fund's 699 of assets per $1,000 principal
portfolio in the last quarter were .amount of debentures outstanding,
purchases of 25,000 shares of Con--and $282.89 for every share of its
shares of Page Hersey

life
pur-

or a

He must be

something

on

(17.32%).

solidated

plan

a

in what he is doing

sees more

but

At year-end,

industry -sued in a few days.

A salesman

individual.

as

by

announced

company>

through

go

salesmen!"

been

investment

Francjs p

people

pose concerning anything.
They
amounted to $20,619,000, the
go through their tasks from day
highest for any year in the com¬ to
day,mechanically and patiently.
pany's history. This volume com¬ We
need people like:this in the
pared with $7,413,000 in 1954. The
world
to do
tasks thaf require
upward trend has continued in
their particular attitude and abilthe
current
year
with January
ity. But we don't need them as
sales
substantially in excess of

cohipared with $6,458,000 in 1954.

"

Many

without much of

1955

purchases amounted to $4,978,000

$278,027,599 total
PUied with $236,164,289 in 1954.
Per share net asset value at
year-end was $42.54, after provision for possible unrealized apreport
preciation on investments. This
Investments included stocks of was an increase of about 18% over
some 50 Canadian business enterthe $36.16 of a year earlier, the
prises principally in the metals Chairman said, in a statement
and mining industry (21.47%), the made prior to release of the 1955
pulp and paper industry (18.70%), annual report, which is to be isoil

Fund,

than $41,000,000 in 1955 to the
funds, and sponsors of its own
highest reported total in the 26periodic payment plans for the
year history of the nation's largest
accumulation of shares of Wel¬

assets,
a U. S. incorporated mutual fund
managed by Calvin Bullock, stood
at $35,142,019 as of Jan. 31, 1956,
according to the fund's quarterly

the

Chemical

Corporation's

assets

Canadian Fund, Inc: net

and

69

Broad

Bullock Funds

Make

(1357)

Financial Chronicle

Number 5516...The Commercial and

Volume 183

ADDRESS.
CITY.

CORP.

115 Broadway

New York 6, N.Y.

The Commercial and Financial Chronicle...

70

> *

(1358)

/

#

J

J"*-

-

.Mar. 18

(percent of capacity).

Equivalent to—
ingots and castings

month ended

or

.Mar. 18

oil output •

fuel

Distillate

.Mar.

(bbls.)—#

.Mar,
(bhte.)
Stocks at refineries, bulk terminals, in transit, In pipe linesFinished and unfinished gasoline (bbls.) Jit—
—Maw
Bssldual fuel oil output

(bbls.) at
Distillate fuel oil (bbls.)
Kerosene

Residual

at—

RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections <no. of

ASSOCIATION
v

at

(bbls.)

oil

fuel

Mar.
Mar.
Mar.

—

*

-

13,208,000

2

2

r4-

2,555,000

f

2,814,000

8,826,000

2

J-1S4.668.0P0

f

193,988,000

2

18,541,000

i

18,684,000

71.648,*000-

i

74,330,000

'2

35,970,000

2

/ 44,298,000

38,570,000;;

XJ.

CONSTRUCTION

cars)—Mar.

3
3*

687,018 A
68(T,884

710.996

698,631"*-

t-

T".

671^44

Mar.

8

148,067,000

Mar,

8

125,702,000

.Mar,

8

22,365,000

7

OUTPUT

S.

(U.

119,538,000

140.615,000

99,348,000

9,970,OdO

9,755,000

474,000

-

•

572,000 '

623,-000

=

Mar,

100

,

EDISON

(in

output

":iv"

INDUSTRIAL)

(COMMERCIAL AND

FAILURES

BRAD8TREET, INC

—

DUN A

268

S80

■

...

,650

•

r

steel

All "other
Public

Export

(New York)

Lead
Lead

$47.63

$49.50

.Mar.-

*

7

..

.7"

.Mar/'7

86

—

7

15.800c

.Mar.

7

95.16

—

—

;

.Si—

15.800c

c14.800c

13.500c

13.500c

95.88

97.11

107.98

109.24

108.16

111.44

111.81
110.15

108.34

All

other

27

102.80

102.80

102.80

106.39

106.56

108:34

103.52

109.06

109.42

:

**

.

2.84

320
76

—

v..

r

77

150

■

•

75?

3.28

3.27

3.28

Mar. 13

3.09

3.07

3.08

2.87

'

44.

.86

-;y

f

22

lTo

;.r,

: a*

178

•*

23"*—-*

81

H

A

"

165

—

*«

•

a.

->

#

23

'

79

i

70

.

#

25

34

38

10

development

10

~L :

•'

11

>

33

MINES)—Month-of Jan.:

(net

<

9

7

-

6,915,071-

tons')___

6,865,032

6,660,284"

(net tons).

coke

-

.v

J

tons-i

.

254,787

,

5,805,926s5,745,421

225^11

<60,505

1,637,200

2,747,638

v

.

1,648,673

^

i

it 6,629,821,

V*

Mar. 13

3.16

3.16

3.16

3.26

3.29

3.58

3.58

3 37

3.36

3.37

Mar. 13

3.26

3.25

Mar. 13

3.22

Mar. 13

406.6

^ood

homo
and bakery

at

Fruits

3.49

Mar. 13

«•

r

'

114.6

114.7

# «

-

—

and

-

.123.9

products.::

107.9

103.4
.

"

04.6

112.6

•••-

*

123.4

.

102.4

107.7

J

106.4

-

110.7

-

t—
L

*-110.6

t

1,23.9.../ '

93.3

107.3"

vegetables

114.3

:

r##.:

109.5

107.5

Dairy

3.19

3.58

v •

:

Meats, poultry and fish
products

r

v:

3.13

3.28

1947-49=100—

—

"/

Cereals

;

3.21
3.03

Mar. 13

PRICE' INDEX

items'./

109.2

2.71

v «

f

Mar. 13

'

v.;

,

:

Month of January:,
All

110.15

"*

2.81

Mar. 13

Aaa

30

•

coke stock at end of month -(net tons)

CONSUMER

107.44

,

Mar. 13

#'

290

■

:'

:

t

i

I

21

*190

■

OF

(net

Beehive

109.97

MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds

:

,v-

696

20

"

.

J

13

■

-47
-

and

(BUREAU

Oven

110.70

/. 104.31

V

109.42

Average corporate

building.

#

718.

■

•

:

228.

109.60

108.34

—Mar. 13

-#

106.39

—Mar. 13

Group

19

.

19
50

8

137 " '

■

:

v/.:#

•/

55

279

"

■

2)7

#,#221.:...

:

"

1

■»■■■

95->
•

28

■

pubHc___Jl

Oven coke

•

•

Aa

;

1

—

Production

112.56

107.98

—Mar. 13

Group.

*

109.97

107.98

-Mar. 13

Industrials

,

111.62

110.15

-Mar. 13

Utilities

-

building

)

26

t. *'

'

<

28

.303

7

.

17

11.500c

95.45

^

:

.Mar. 13

Public

53

••39

•;

y'.J- 23

■

_£

Conservation

15.000c

16.000c

-Mar. 13

Group

.)*

*

15.800c

107.98

.Mar. 13

Average corporate

58

26
■

#36'

Public, service enterprises..—

90.750c

COKE

U, 8. Government Bonds

,

;\115

:

",#

215

-private___^__^____

construction*

Sevier and water

36.300c

16.000c

"rr

*-

163

18

.

; 55

v

,

/Highways

PRICES DAILY AVERAGES:

BOND

Railroad

'

83

;>#'■

"

13.500c

.Mar. 13

93.500c

~

25

-

^

—

Hospital and institutional

32.700c

45.325c

J

187

•

."..198

41
-

295
•

Educational

$37.58

44.250c

101.500c

1

16.000c

.Mar.

at.

45.875c
48.700c

101.500c

"

176

.

'

25,
34-*

-

Military facilities

46.850c

7

.Mar.

no.6

_

.

A

Railroad
Public

Group

Utilities

Industrials
MOODY'S

Group

Group

Production

Rent

3.26

3.17

Gas

3.20

3.20

3.16s

Solid

405.0

407.3

and

and

/

Household

.Mar.

379,251

.Mar.

(tons)

3
3
3

99

.Mar.

at end of period.

248.753

294,755

.Mar.

Percentage of activity.

.1

3

291,984
v.

>

•

101

651,772

<

and

girls'

103.4-

'

„

/

;

AVERAGE

100

—

LOT

EXCHANGE

SPECIALISTS

AND

DEALERS

107.45

107.08

•

,

1,439,920

1,450,274

"107.3

$70,735,609

$75,474,442

$88,042,721

SEED-AND

*

:
'

•"""

COTTON

i2D^a

.

other sales

...

788.649

1,195,972
6,396

4,229

1,189,876

782,240

1.045,635

1,451,028

Seed—

Crushed

8,967
~

Feb. 18

$39,820,177

$66,075,471

$53,324,873

(tons)—

(tons)

202,750

322,320

266,490

402,070

Crude Oil—

$70,281,214

.—Feb. 18

■

.—Feb. 18

Short sales

of"

-

.Feb. 18

202~750

322*320

266,490

r--—

i

470,830

522,180

604,600

594,220

STOCK

Refined

EXCHANGE

AND

ON

THE N.

Total
e.

ACCOUNT

ROUND-LOT STOCK
MEMBERS

Cake

TRANSACTIONS
i

round-lot sales—
Feb. 18

sales

536.770

453,260

Produced

-.

Feb. 18

10,428,880

10,247,870

11,529,320

17,565,050

Feb. 18

10,965,650

10,701,130

11,902,500

/.

Hulls—

18,368,170

Total sales

TRANSACTIONS

FOR

ACCOUNT

OF

MEM¬
j

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions

of

.

Linters

specialists in stocks in which registered—

V

Feb. 18

Short sales
Other

1,250,390

1,418,910

243,000

212,650

Feb. 18

on

1,135,820

1,078,040

1,419,160

1,437,350

1,321,040

1,631,810

1.540,190
1,957,220

Feb. 18

Other transactions Initiated

256,850

230,600

267,550

Feb. 18

55,600

31,000

23,740

Feb. 18

222,910

231,350

340,510

Feb. 18

278,510

262,350

364,250

384,800

Total sales

—

Other transactions Initiated off the
Total

■

purchases

528,870

Short sales

Feb. 18

71,800

87,630

Other

Feb.18

500,610

533,050

sales

Total

55,920 .^^'114,430
599,217

Other

620,680

2,166,655

2,009,860

2,252,040

424,930

361,630

292,310

PRICES,

LABOR—(1947-49

NEW
=

SERIES

—

U.

S.

DEPT.

1,863,340

1,842,440

*t

2,358,887

Feb. 18

2,288,270

2,204,070

2,651,197.

^ '•

(DEPARTMENT
-Total personal
""■"'

OF

111.9

110.0

Mar.

85.8

65.1

84.7

92.4

foods

Mar.

98.7

93.7

98.7

101.8

70.5

71.3

72.2

80.5

commodities

Mar.
Mar.

120.4

120.4

120.2

115.5

other than

farm and

foods

•Revised

figure,

tllncludes 926,000 barrels of

foreign crude runs.

1, 1956, as against Jan. 1, 1955 basis of 125,828,310 tons.
fNumber of orders not reported since introduction of Mon-hly.

§Based

on new




526

115,423
/

1,040

949

773

.969

547

*

"

4.308

-

1,973

■:

1,734
1,314

-

4.393

1,813
V'

1,403

ASSO-'

OF

.

UNITED

'

annual capacity of 128,363,000 tons

as

187,500

126,700

\

j

-

200,000

*$314.8

$292.2

"

STATES

^COMMERCE)— Month

(in billions):

income.#

$312.6

;

-

•

Wage and salary, receipts, total—

215.5

*215.8

Commodity producing .industries
Distributing industries)
—3——

93.6

94.1

56.9

*56.9

26.7

*26:7

26,8

36.3

*36. i

34.2

5.7

5 4

Service industries

*

Government

—

/

Less

employees

,

contribution

for

_______

special

Other

labor

Personal

—_—I—

income__

interest

transfer

income

and

payments

Total nonagricultural income

■*'

7.2
49

income
dividends

199.3
85.4
>

52.9

in¬

surance

Total

Investment. Plan.

186,850

-

'

5,153

:

tHE

Proprietors and rental
of Jan.

154^90

of/January:

INCOME IN

of January

.„

3,388,516

112.1

products

*389,254

193,878

pounds)— / I

MANUFACTURERS

f

•

100):

Meats
All

§1,000

Gas, water heater shipments (units)

2.827.956
,

112.2

Processed

205,595

1,091

—/I#———/-.

CIATION—Month

1,046.496

Mar.

Farm

/:•

190,613
207.352

*

commodities

133,536

;

'

•"

31_—J&--

APPLIANCE

GAS

Commodity Group—
All

^

,441

Produced

560,560

655,13

Feb. 18

78,015
131,272

150,238

*140,904

.

r

—

w.

L—_

,Stocks Jan,

PERSONAL

sales

296,486

120,204

~(T000-lb~"bales".

2,864,820

.Feb. 18

Total sales

WHOLESALE

balefejr^-

Motes, Grabbotts, etc.

932,066

572,410

Feb. 18

aacchases

ShortM&les

/>

647,580

565,580

Feb. 18

Total sales

Total round-lot transactions for account of members—

"242,133

293,109

327,846

.

137,682

1,123
501,825

3

317,153

320,731
292,319

153,802

—

/

floor—
Feb. 18

144,295,000

1,176

355,700

sales

u.

Produced

29,100

Other

159.433,000

163,049,

r

136,324

:

(tons)

=191.461

Stocks Jan. 31_
..

Short sales

690,701,000

.

'

294,500

Hull Fiber

/

the floor—

purchases

V

417,030

Feb. 18

sales

^L;

Jan.

—

297,530

,

;'v;3 ■/

v

.(running

'
169,197,000 4

117,038,000

171,029

1,922,740

Feb. 18

.

Total sales

Total

1,407,980

<

r

Stocks Jan. 31,--—#——Produced

v

Total purchases

:

—

Shipped (tons)

.

378,236,000
185,720,000

.

123,015,000'

—^

__

/ ;'

(tons)

Produced

.

ROUND-LOT

■

/

1^5/278.000

>vy-'—

(tons)

* ;

Stocks

•—v

M.

Jan.

(tons)

Shipped

753,120

373,180

(tons)

192.182,000—141,494,000

199,941,CCd

•

• 416,904,000

—

'—

Meal—

and

Stocks

.

(SHARES):

>

."

226,931,000

231,041,000

174,915,000

(pounds)

f;841,597

2,420,659'

■.i;...'Wh'K*/

'

"

597,822 *~

•:

672,452

192,547,000

—u_-

(pounds)

Consumption

A-

•'

*

189,248,000

(pounds) Jai?3U_J

^Produced

>"

Y. STOCK

Short sales

Other

i

OF

/

.

:

/'•

'

FOR

i

.

Oil—

Stocks

SALES

'

>

118,703"

.569,890

-

1,898,199

.

JattrM—_u_—:

169,068
691,523

v.

'. 402~070

Feb. 18

sales

-

Stocks (pounds)

r

——

—;

-

Jan. 31i_

Produced (pounds)
/.*.Shipped '(pounds).
;

purchases by dealers-

Number of shares

ROUND-LOT

f

!

„

Stocks (tons)

„

dealers-

Number of shares—Total sales.

TOTAL

i

10G.9
119.9

120.6

__

PROD¬

SEED

COMMERCE—Month

OF

Received at mills

1,459,995

1,049,864

6.409

Feb. 18
Feb. 18
Feb. 18

sales

Dollar value

Other

-•

•

jV

'

Round-lot

-

January:
Cotton

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

sales by

r

113.7
-

106.6

#

■

'

UCTS—DEPT.

1,680,153

$52,038,854

Round-lot

,

1L7.9

118.5

—

cJS_i—

recreation^

goods and services

COTTON

1,007,910

Feb. 18

value

Customers'

;_

care

and

127.6
126.5

"

Feb. 18

Dollar

short

care

*■

Number of shares

Customers'

v/

127.3

Other

STOCK

90.5

v "

130.2

Personal

ODD*

(customers' purchases)—t

'm'.

97.6
116.7

A

126.8

COMMISSION:

EXCHANGE

SECURITIES

—

Odd-lot sales by dealers

Y.

N.

ON

107.07

106.97

9

~

91.1

.

130.7

Reading

^.Mar.

105.5

119.8

,'

—90.7

Medical

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

L

103.3
:..:v./v;

c9 !

120.4

:

;

Other apparel

523,368

Transportation

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF

117.7

/

104.7
1C6.1

<97.9

•

104.6

'

)

120.7

.

104.1

'

Footwear

96

•

126.1

106.0-

boys'

:»

109.4

128.0

.121.2

•

'

Women's

266,804

291,570

100

499,696

584,234

129.5

111.5

.102.0"

.i_':

operation

and

131.1

129.5

3

♦

Men's

406,459

405,935

119.6

..V.

111.7

oil

fuel

111.3

120.8

131.4

electricity./

fuels

113.7

120.6

/_

•.

Apparel

„

(tons)

394.4

ASSOCIATION:

(tons)

Unfilled orders

3.31

t

112.8

.

;

Housefurnishings

INDEX

PAPERBOARD

Orders received

Other foods at home—

Housing

.

COMMODITY

RATIONAL

•

'

548

f".

J45
.

39

!

Industrial

.

47.225c

►Mar.

at.

at.

(East St. Louis)

Sine

MOODY'S

$47.83

at—

Louis)

(St.

6

—;

York)

(New

$56.59

/

S

at

refinery

tin

$59.09

5.174c

/ # :1

'--305

"

'els

^

-—f-——

Nonresidential

4.797c

$59.09

.

J-

*

■

cor^truction

Other, nonresidential

Electrolytic copper—
Domestic refinery at
Straits

5.174C

$59 09

68

-

'r

225

IOD^—r

Telephone and telegraph.'—

M. i. QUOTATIONS):

(E. Sc

METAL PRICES

5.174c

6

—Mar.

Wg iron (per gross ton)
Scrap steel (per gross ton)

6

—Mar,

-

250

-

.250

i

Other public utilities

#257

__Mar.

lb.).

(per

♦

*'651

;

.

.T.229
-V

::
warehouses

Miscellaneous

Railroad
J '.

PRICES:

COMPOSITE

AGE

Finished

■;• - 9JO

;jr go

55

Public utilities

•

•*

: •

.Residential buildings—s
IRON

2,002

#1,049 ;

V- 21.

Hospital and institutional-——

~

236

293
-

:'U".

.

66

>

—

Educational

•*

9,726,000

1

-•c

##,079

.

171,

Farm

:

.

.

V

"

t

.

/

—Mar, ,8

—

885

Social and recreational

•

-v,

"""

•

150.

«.

,

98

v

)

•

$2,698-

2=124

:■

-

981

restaurants, and garages______

Store?,

V* #

11,343,000

11,199,000

11,133,000

Mar, 10

kwh.)____—

000

-

'

INSTITUTE:

ELECTRIC

Electric

2,019

Oihef nonresidential building————i.

<

V

!-

90

97—-

104

3

4___-

2

Office buildings and

,

'.f

399,000

r

RESERVE

SALES INDEX—FEDERAL
AVERAGE

SYSTEM—1947-49

•',,$2,842

•'#>.

buildirig/(nohfarm>ii<w—L._

/dwelling unlts^-i-—^

New

7,780,000

'

#

.(-#*

S

•
♦

Religious
.

•

constructior^__:_u-_'_;_ii_-v-i.iil-i-t;

new

i' Commercial

«•

DEPARTMENT STORE

/-•
«.
.•••:

.

""

J
9,880,000

—

—

(tons)

Pennsylvania anthracite

27,989,000

i.e3k ;*"v:

.*«:•

OF

(in millions)::.

February

Additions and 'alterations———.—.

91,549,000

32,841,000

*

:

>

Mar,

—Mar.

(tons)

107,774,000

19,088,000

80,260,000

OF MINES):

BUREAU

and lignite

coal

Bituminous

«

""

Federal

GOAL

of

f*

p:'t•'

■

11,180,CGO-J -36,919,000

'

«■

j

S.. DEFT,

Nonbousekeeplng
;
Nonresidential, building (nonfarm).—
«v ^"Industrial—
c
1

'

Bute and municipal

'

1 *■

-'298.249,000'._;'

'

238,691,000

399,292,000

256,368,000

265,742,000

Public construction

'•

648,162-

$358,229.00Q

$539,907,000'

$355,716,000

$413,809,000

8

—Mar.

■'}

\

32T,362^)00 ^-284,867,000

_

/"'34,251,000

••av'j

■

17,751,000 i i

'vh

{barrels

.

22,539,000

14,964,000

•

(

t

V

.

'

,

—Mar.*- 8

Private construction

:

53,000

24,685.CC0

19,144,000

.

193.213.000/-

">2?i'C24,000

•

>: 24,oeo •-

export

Private construction

ENGINEERING

—

construction

8.

'.Total

r

Residential

.Mar.

• •

•

,

LABOR—Month

.

653.575

680,989

NEWS-RECORD:

Total

\

,

23,602,000

x'

21Q.990.000

'210,406.CGO
'»•

.41,000*

,

65,932,000

84,230,000'
;

•<;"»

234,038,CC0

»

24,703,000
27,419,000

—#_if-

and

-

___

Decrease all stocks

v

Ago

v

(barrels#

domestic

BUILDING^CONSTRUt HON—U.

18,873,000

.

Month

t ^

Year

221^04,000
>-

(barrels)
r

Pievlcus

246.543,000

____

(barrels).—

products: import*

Indicated, consumption

182,343,000

182,656,000 *>
-20.357,000

PX102.000

■

l 8,263,000

■

^

oil output: (barrels)_______

Crude oil imports
.^Refined

12,784,000

..<9,241,000-3.

8,838,000

,

2,434.000

-

"

13.535,000 / *

13,829,000

as<)f that dater

are

(barrels of 42 gal-

_

crude

gasoline output (barrels
Eenzol output (barrels

24,553,000

'26,139,000'

26,329,000
2

■

INSTITUTE—Month

Natural

7,462,000

8,068,000

8,034.000

,

2,707,000

Domestic

6,806,200

.

>•

AMERICAN

OF

ENGINEERING

OTYIL

118,093,000

7» 081,'200

»

Ions, eaclu,

•

.

7,183,350

'

December:-

/Total domestic production

2,273,000

2,433,000

PETROLEUM

AMERICAN

/•/

•26,132,000

of quotations,

cases

'

■ W

■

either for the

are

Latest

94.2

98.8

.*2,462,000

7,145.900 •-/.

St' "

-

.

Ago

*100.0

§2,433,000

•

.

Month

Week

§98.8

INSTITUTE:
r
> "
Crude oil and condensate output—dally aterage- (bbls. of
Mar. X
42 gallons each).
Mar;. 2
Crude runs to stills—daily average (bbls.)
.Mar.
Gasoline output (bbls.)
•*
.Mar^, 2
Kerosene output (bbls.)—
—•-

' "

Dates shown in first column

that dater or, in

on

•

-

Year

PETROLEUM

AMERICAN

(*

•

••

,V

month available.

or

of

(net tons).

■teel

**"*»■■

Month

Week

0TEEL INSTITUTE:

AND

*,

..

Previous

Latest
IRON

■'

.

yeek

Business Activity
Indicated ateel operations

»

latest week

Thursday, March 15, 1956

v

production, and other figures for the

The following statistical tabulations cover

Indications of Current

AMERICAN

■ ■«-

/

.

^

^

26.0

5.9

7.2

6.8

*49.9

49.1

29.9

25.0

17.7

17.4

17 0

297.9

*299.9

276.5

-

Continued

Continued

.•

from page 8

71

(1359)

Chronicle

Number 5516... The Commercial and Financial

Volume 183

the

from

8

page

R. C. Porter Joins

Kerzfeld & Stern
Branch in

Market

F. Eberstadt Co.

Philadelphia

Robert C. Porter has become
& Stern,, members of New York associated
with F. Eberstadt &
Stock
Exchange,
announce
the Co., 65 Broadway, New York City,
opening of a new office in Phila- according to an announcement
giant definitely fallen delphia, located in the Suburban made by the investment banking
PHILADELPHIA, Pa.—Herzfeld

...And Yon

Recommendations & Literature
&

Power

'

V

■

.

Diamond Match Company

.■

.

.

Analysis

—

trodden

North Main Street, Daytoh

Company, 25

Light

) 1, Ohio.

,,

,v;

■

Indianapolis 4, Ind.

Circle Tower,

Inc.,

*

<

,.£Y.

:

.

.

A former blue

Corporation—Bulletin—De Witt Conklin Or¬
ganization, 100 Broadway, New York 5, N. Y. ^ *
Manufacturers & Traders Trust Company — Circular — First
Boston Corporation, 100 Broadway, New York-5, N. Y.
Co.

—

Review

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

5, N. Y.

Findlay, Ohio.
Old

-

■]

Report

—

;::C|•'

Pacific Power & Light

Davis

•Parke,

Company—Analysis—Harris,lfj§iham

&

Planet V

Penobscot

Building, Detroit 26, Mich.

of

Y.

N.

,

&

made.

■

•

Co.—New

Cement

Riverside

Office Square, Boston

■

Texas Company—Annual
pany,

%||§

;

/

who

Post

Wall

44

New York 5,

Street,

N.

State

on

of

Bank

Suffolk.

•

.

■

Ian

Walt

&

than 4V^%

a

'■/,*'
[The-views expressed
.

article

JPa.

J. Cap..

'

FOX, Treasurer.

M.

•

'

.

^inilUilllllllllllMlUllllilllllllllllllilll!lllllilllIllillllllllllllllllillllllllll!lllllllili8illlllKlE91ilRI@

MICHEL.

W.

President

and

Treasurer.

New

-

with

<eChronicle."

They

those of the

as

COMMON

,

,

The

a

are

3€

NO.

■ j.

*

on

the

^lbayap.'si19T6,
March 31, ht

to

stockholders of record at the close of

!

of

common

shares

of

the

1956.
H. C. Moore,

H. B. Pierce,

author only.]

a

Association, payable April 15,
1956 to shareholders of record at
I" the closit of business March 26,

stock of the Com'

common

the

on

deud of in per share was declared

any

declared

have

Trustees

regular quarterly dividend of
twenty-five cents (25<f) per share

meedng

the" '■
business March 16, 1956.
presented

those

DIVIDEND

March 7.1956
I

COMMOWDIVIDEND No, 319

1945.
at

England Gas v

and Electric Association

Packing Company
mo.ut.mTOff.

tn

not necessarily

do

coincide

time

.

The Garlock

Secretary

Jr., Treasurer

March 8, 1956.
•***-

Productions—Study—Hoit, Rose &'• Company, 74

Disney

1956.

15,

in-

.

,

.

Co., 1516 Locust Street, Philadelphia

SAMUEL
March

0f tjie Board of Direc
score "tors, held this day,, a quarterly divi'

;Of points higher even in

North; &

Jersey—Memorandum-^Aljbert

1956

154

CLIFFORD

of lack of

United sold

interest.

•

Dome

as
in
yields of
are avail¬

Airlines,

able mostly because

-

Trust Company of New

as
has been

"

Fitch,
Co., 1006 Baltimore Avenue; Kansas City 6,. Mo.
Corp.—Memorandum—Barret,

NO.

DIVIDEND

meeting of the Board, of Directors of
Mines Limited, held this day. a dividend

a

where,

airlines

the

better

\v?

Broadway, New York 6, N. Y.

Transamerica

March' 9,

*

in

importantly
which

United

Trade Bank & Trust—Progress report—J. R. Williston & Co.,
115

Directors
has
declared
a
quarter-annual dividend of 20 cents per share
on
the Capital Shares of the Corporation, pay¬
able March 30, 1956, to stockholders of record
at
the close of business March 20,
1956.

LIMITED

MINES

pharmaceuticals, and in

and

^

:

.

SHARES

CAPITAL

ON

of

Board

creasingly active in chemicals

■

.analysis of Wagner Electric Corporation and $ memorandum
.

CORPORATION
DIVIDEND

tiirn'

Armour

available is an

Also

Y.

STOUT, Secretary.

GENERAL REALTY i UTILITIES

the close,

at

+Vio mpnt nppk- of Seventeen and One-half Cents (ntac) per
lUin, Hie IIlcdL jjctciv. . share (ia Canadian Funds) was declared payrli\rprcifipQ+inn
i<? able on APril 30- 1956> t0 shareholders of
wnere
CllVerSlIlCaLlOIlt lo- record at the close of business on March 30,

"fVioiv
meir

looming

Co^Ih corpora ted,

&

:

V

.

StiuuuiiiJMiiiiiiiiiiiiiiiiiiifliiiiuiiiiiuimiiuiimniDnuuiuiiuiiiiiniiiinnmffiSRsaMaHMi

Trinity Place, New York 6, N. Y. >

William
responsibility

little

New

Type Mtge. Loan
Company Formed

-•

the

corporation^^

devolving
'

the

Lippman Willi
Pledger & Co.

on

investor

LOS

Calif.

ANGELES,

—

mort^^ insu-d:^y the Federal

1

GENERAL

Wil-

TIME

rnmnanips' to

mortfiafrp

^ake invTstment

in

home mort-

opened an office at 39 Broadway;
York

npw

gard

to

mortgage

" Jr

insurance

Los

Angeles

was

Gardiner With Bache

;

(Special to The Financial Chronicle)

Washington economist and ChairT3o,,i

t>5

Tr.

BEVERLY

*

facilities

and

functions

of

a

department,

the Baltimore Life Insurance
Company, Executive Vice-Presi-

permitting them to arrange for
the origination and servicing of
home leans entered into by mort-

dent who will be in direct charge
of promotional activties; Arthur

companies distributed
throughout the countrv. It will re-

Co., 445 North Roxbury Drive.
Mr. Gardiner was formerly with
J. A. Hogle & Co. and

National Voluntary Home Mortgage Credit Conymittee; - Vice-

gage

Viner, formerJjLJ&cretary of the

the accounts President; and
Cikl O. .Olsen,
clients from the former comptroller of the Balti¬

ceive remittances on

its

of

investor

companies and transmit
in¬
at such intervals as may

mortgage

Life

more

Insun

vestors

be

participating

the

with which it
contracts. Proced¬

mortgage companies
has
ures,

servicing

it is said, will be sufficiently

flexible to

permit

as

much




or

as

officer of

(Special to The

Whitehead
Simon

Financial

LOUIS, Mc

&

is

Co.,

noi

3U

Chronicle)

with

E.

Evans

I.

J.
M.

and Midwest Stoc

The regular

quarterly dividend

of $1.06J^

cn

per

cent

cumulative

preferred stock,

April

1956

to

share¬

March

record

of

holders

the AV<

2,

14,

COMMON STOCK CASH DIVIDEND
Declared
share.

common

OF

COUPON

REALTY

&

SAMUEL

1956.

M.

50

cents

per

of

record

March

Declared February

Stock

14,1956. Payable April

13, 1956 to stockholders of record at the
close of business

NO.

UTILITIES

CORPORATION

15,

of

on

March 23, 1956.

14,1956.
John H. Schmidt
23

the amount called for by Coupon
representing interest for the six months
period ending March 31, 1956
on
the above
'mentioned
Debentures
of
General
Realty
&
Utilities
Corporation,
will be paid on March
31, 1956, at Bankers Trust Company, Successor
Trustee.
46 Wall Street, New
York 15, N. Y.

March

dividend

8hareq>ayable ^pril 2, 1956 to
shareholders

23

GENERAL

February 24,1956.

stock

5% STOCK DIVIDEND on Common

Income Debentures
September 30, 1969

PAYMENT

February 14, 1956—37Vi{ per

Payable March 15, 1956 to stock¬

holders of record at the close of business

Cumulative
OF

Magnavox

Company declared the following dividends:

pay¬

able

PAYMENT

CORPORATION

the New York

Exchanges.

NOTICE
The Board of Directors of The

A

Fourth

Street, members c

GOVERNMENT

stock

preferred

1956.

Payment of

-Kenneth

North

R.

GENERAL REALTY & UTILITIES

No.

ST.

dividends:

on

COUPON

Due

I. M. Simon Adds

prior there¬

Co., of San Diego.

NOTICE

is also prepared td
handle
all other management
functions such as auditing and su¬

an

4%

designated.

of

&

was

Secretary-Treasure

The company

pervision

to

Company,

consolidated payments to the

•

DIVIDEND

The Board of Directors has de¬
clared the following

Calif.—Ed¬

HILLS,

&

home office mortgage

RADIO PHONOGRAPHS

ELECTRONICS FOR INDUSTRY

win L. Gardiner and Earl H. Detwill tj. vjaxuinei aiiu aan xi. ju^l-

(ra have joined the staff of Bache
the

company

HIGH FIDELITY TELEVISION

Dividends

In addition to Miles L. Colean;
the officers of the company

Magnavox

CORPORATION

Hull & Co.

of Holton,

partment

the

TIME

GENERAL

or

guaranJae*
man,

Citv

the

anteed by the Veterans Adminis- Stock Exchange.theMr. Lippman
• trading de¬
formerly in

Zle^nl economfcaT arid ^^3^"

pension funds and other investors,
according to Miles L. C o 1 e a n,Chairman.
The company has

of

Bousing Administration or guar- members

^ J5.

Street,

Seventh

West

210

pany,

T

M

(Special to The Financial Chronicle)'"

>?•'

At the outset, Mr. Golean said,

the activities of the Investors Cen-

•JL 31

Ui,TrnVVnnrntin'npV'tvn^nf tral Management Corporation will Ham A. Lippman, Jr. has become
wwpp
has
been
or " be limited to the handlinS of home
associated with Pledger & Comnf

to

busi-

1956.

Report—Secretary,;T&gTexas Com¬
xLi.

Corporation—Analysis—Blair

of

1956,

'

At

to be on the verge

seem

ers

■

Company,

of

;

"

:

Royalty Trust B—Circular—Garrett and

1956

14,

close

.

at

McDANIEL, Secretary-Treasurer.

DOME

being done, the liquor makers

V Fidelity Union Life Building, Dallas 1, Texas;-,
Towmotor

to stockholders of record
business on March 23, 1956.
E.

,

,

Company payable on Ma ch

,

135 East 42nd Street, New York 17, NT

Tidelands

...

April
the

at

S.

interim

an

of

1956,

depressed groups
much of the culling is,

that

20,

<~if
OI

' V.'.:;.;.

of

1956,.

I

9, Mass.

Va.

10,

'

record

March 12, 1956.

y

quarter

of

JOSEPH

It is in the

Company—Annuai.£$$eport—E. L.
Lash, Jr.,; Secretary, Seaboard Air Line Railroad Company,
Norfolk

30,

this

stock of

capita^

first

cents (10c) per share has
day on
the capital stock

payable

29,

March

1956

14,

Company,

declared

day,

this

the

for

of

ness

The

Railroad

Seaboard Air Line

y

this

,

ten

this

Corporation

stockholders

t

Y.

414

Directors

of

of

declared

the

Com¬

10

views—Lerner

dividend

been

of

New York 5, N.

DIVIDEND NO.

held

Meeting

dividend

G.

~||g

.

Ro.ario

March

r

Board

The

with a definite possibility that the* turn has • been

;.§|g
Reports-Radio Cor¬

America—Annual

S.
E.

now

Company

Broadway,

i

previous
a

Co.,

of America, 30 Rockefeller Plaza,York

poration

120

nearly,

the

HonJ|lra,

&

Mining

last

but

was

of

that

York

New

net protit

year

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

Corporation

Radio

double

Instrument—Circular—Grefcile and

Radiation

Shively

A

encourag-

t '.I b'iXpSr

.

pany,

year's income

& Co.,

Hague^^jble

Corporation—Analysis—Smith,

Precision

Kr

r

•

bringing

mg figures down to
in-71953 and 1954

Co.—Analysis—Unlisted Trading Dept.,

Broadway, New York 5, N. Y.

120

A. Hembree and Harold E.

-

trouble in

& Co., Ill Broadway, New York 6, N, Y.

Ira Haupt

chemi

various

a^id Air Reduction .itself are now with King Merritt & Co., McRae, 449 Main Street.
using its own product for Inc., Woodruff Building.
'
*
DIVIDEND NOTICES
plastic products on an increas¬
DIVIDEND NOTICES
NATIONAL SHARES CORPORATION
ing scale. The company had
14 Wall Street, New York

\

y-::%0

t

tor

Lincoln McRae Adds
ROCK^Z~~n
Jackson is
with Lincoln

'

is

)'y
" V;. ('"•*
Corporation—Review—Sutro.^iros. & Co.,.

Marine

Two With KinS Merritt

cals

:

£)il Company,

General Investing Qorp., 80

—

Broadway, New York 5, N, Y.

120

*

base

a

as

i;!Wall Street,

Street, New York 5, N. Y.

Outboard

;

/"

«

V;

■

Copper

Hickory

Wall

V,

• •

,

of <is a member-of

Division

Emory^. Freed

s;~I~M~uther

is coming into new play;

;- ness,

v||

>

.

Company—Annual Report—The Ohio

Oil

Ohio

,

Inc.—Report—Cohu & Co.,,

Mohasco Industries,

cafsingfin^mSal 'bus!-

Vilas & Mickey, 49 Wall

—

the

as

producer oi acetylene gas but are Joseph T. Raebuck, Manager; firm of Cravath, Swaine & Moore.
lately well diversified in "other Fred H. Benner, Co-Manager, and During World War II, Mr. Porter
line$, Even acetylene,S once Theodore M. Freed.s
served with the U. S. Navy.

Stocks.

Electric

also been a Vice-President-of the

Philadelphia

in

Chemical Bank & Trust Co. He
the .New York
Hnrtinn
thp wnrlrPc tppdiner Herzfeld
& Sterns.
Associated - State Bar and for several years
auction, the world s leading with the firm ^ the new offke . practiced with the New York law

•

Lakey Foundry

McGraw

erage" business

definite^since* 1872, and will be known

a

turn in its fortunes is Air Re-

Great Lakes Paper Company,

Common

office will also merge

new

,

chip that has

yet tO fully reflect

.

Ltd.—Special review—Dominion...
Securities Corporation, 40 Exchange Place, New York^5,
N. Y.
Also available is a brochure on selected Canadian

firm.

Mr. Porter was Secretary, gen'the activities of Emory, Freed & eral counsel and a director of
^
^ Qonducfe'd g brok. Chas. Pfizer & Co., Inc. He has

A Reviving; piue Lmp
ucvivng Blue Chit)

,

Co.—Memorandum—Kiser, Cohh & Shumaker,

P. H. Glatfelter
f

y-

The

-

/v

.

Broadway, New York 5, N. Y.

•

•

Reynolds & Co., 120

—-

Station Building.

hard days

on

'

.

*

FOX, Treasurer.

Secretary

)

March 7, 1956.

m PREFERRED STOCK CASH DIVIDEND
Declared February
share.

14, 1956—42^ per

Payable March 15, 1956 to stock¬

holders of record at the close

WESTCL0X

•

BIG BEN

on

February

of business

24,1956.

SETH THOMAS

STR0MBERG
HAYD0N

RECORDERS

j. s. sturgeon

MOTCf.S

Vic0-Presidenf and Trcasvrer

February 14, 1956

1K*WCS 'IW"..*W7," ft*

d<r»WW><"*<lsiW.

72

The Commercial and Financial Chronicle... Thursday, March 15, 1956

(1360)

sured

BUSINESS BUZZ

to

lien, Mr. Benson

boost

n.

million

an¬

$100

million,

the

to

in¬

capacity
Then

A

BeTund-the-Scene Interpretations
Nation's Capital

from the

Of#

M

jTJL § i/\A/

aid

M*

-

"FHA"

to

loans

to

money,

make

credit is

directly

business-minded
Administration
dedi¬
cutting expenditures,

Federal

into a

run

vou

Federal
cated

to

the government out of
keeping the govern¬
from doing things for the

people that they can do them¬
selves, it is really something to
that

housing

House-written

the

Among
of

this

are

the

of

part

liberalizations
for housing

insurance

FHA,

you

cost

the

anything,

the

isn't

cept
•

ing

a

units.

housing

'insurance."

insures
of

the

matter

is

a

a

will

good

insurance.

magic wand.

Furthermore,

is 9

;

dent

does

means

not

if

even

program

anything

by

radical

so

of age and

Displaced
In

as

or

dreamed

for

scheme
This

out

of

;

finance their loans with others

a

Cabinet

hower

in

peer

in

the

when

standing for

private enterprise and reduced
government expenditures.
>
'

>*;■ Farmers

who

week

a

"flexible"

for

price

character in

most modest

Home

It is the

This
the

Administration

notion

Roosevelt

adopts

fostered,

which is that when something is

proposed,

it

pose

One

the

mort¬

*

blunt

;

for

perhaps

whatever

philos¬

cause

al¬

or

one

proposal

instance,
offer

50%
had

90%

to

100% bankruptcy.

v

bedded

;.

up

has

their

Now

passed

Farmers

tion

is

which

loans,
lends

may

Mr.

ef¬

Home

posed to lend

the word to

can

An

White Eagle Oil

sure

Administra¬

Olin Oil & Gas

the

Anheuser Busch

agency

lending
has

insure

Can't

amendments

the

series

capacity

of

have
do

discovered

nothing,

is, but it
bait

can

sure

looks

wonderful

a

mousetrap for that majority of
private businesses which see a

piece of cheese in the form of
work.

no

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or
may not coincide with
the "Chronicle's" own
views.]

insured

mortgage loans undertaken

Edw. B. Watkins Joins

modest

,

Moreland & Co.
DETROIT,

"Watkins
with

Mich.

has

—

Edward

become

-

Moreland

&

B.

associated

Co.,

Penobscot

Building, members of the Detroit
and

This

have

really how good a
enterpriser the Eisen-

like they

on

years.

Midwest

Stock

Exchanges.

three-year debt
refinancing, of course, will be
extended
into
eternity, or so
long as people still use United

of

with

States

the past he was an officer of Wat¬

currency

new

no

this

after

Incidentally,

money,

is

for

usually

Mr.

Watkins

has

recently

been

Smith, Hague, Noble & Co.

and Charles A. Parcells

&

Co.

In

kins & Fordon, Inc.

three years.

while

diluting

character of the "FHA"-in-

the

by

for

^activity

abandoned

further

proposed

will

hower team

junior se¬
another amend¬

Still

the

say

private

/
-

'

any one

ennobling

been

n's

of

refinancing farmers' previ¬
ous indebtedness, to the tune of
$50 million a year for three

It is not sup¬

ambitious

gov¬

for

get loans on "reason¬

amendments

the

companies

"banks

ment would allow "FHA" to in¬

able" terms from anywhere else.

Colorado Oil & Gas

n s o

Home

mortgage

and

Long
before
this*
the
demagogues on

lots of pay for

Another

authorize

curity.

with Treasury
or

using

money.

loans to be made

a 'government
agency
:(like
FHA)
"insures",
but
also
unlike FHA,

money

when

Be

would

Commodity

Farmers
second

on

govern¬

work

why
should they get such a
high return." Then the trap will
snap.

*

Refinancing

present

lend

ernment's

money

fiscal

Debt

security

sup- *

■■■yV\ l'

funds to farmers.

who

At

that it must have still

:more money.
-vv

price
this

with

show

the Hill

or

adopt

If ^this ' concept
were
im¬
in the law, a man ap¬
pealing to the Supreme Court a
conviction of showing lewd pic¬
tures to adolescent girls could
;

would

sure

Credit

of

Permit

It would be the last be¬

fectiveness.

one

25%

or

to

for

last

the "flexible"

ports

for

"constructive

a

To the

bankruptcy,

"last."

this

under

offer

ternative."

insane.

same

Hill

that

to

run

may

the

j

however,

value with nothing down
required for the "FHA" ward.

place from which
year, was
told
that the $2 billion of additional
funds then requested for Com¬
modity Credit Corp. price sup- port operations would be the,

is

it

because

must,

ophy,

does not just op¬

one

.

also

does

private
atrophied.

full

Congress

loans

a

prob¬

It may not be many years be¬
fore the government will be the

of

(it also calls
a

take

the

The

lending and the credit faculties

so.

loan to 100% of its ap¬
praisal when using Treasury
money.Its insured mortgage
loans now may run only to 90%
of the appraisal.
Mr. Benson
proposes
that
the
insured

supports by further diluting
their

able to do

were

and
in

major factor in farm mortgage

re¬

gage

propa¬

Senate

the

in

victory

ganda
last

won

and

itself "FHA") can make

Incidentally, this is the same

Mr. Benson

they

everybody.

means

inferior

broken

Home,
lighten a pro¬
at
requiring

Treasury's:' back

-

;

housing

farmers

Eisen¬

without

Adminis¬

the

old-

banks and insurance
companies
get the pay.

Farmers

aimed

"FHA"

f

rooted

vision

reducing government expenses.

FHA

persons."

families

shameful

of

letting

to

would

grand plan to build a fabu¬
lous
volume
of
housing for

"housing for dis-

a

up

insurance

placed

Cole, the Housing

bankruptcy

Eisenhower

it

ment

Farmers Home clients to get off

thought of fiscal prudence
the dangers of inflation for

would

<

Alternative"

Finance

access

and

,

credit,

personal interest
lems! of debtors.

of the

some

busi¬

do

-

amendments

down

to

gain

would listen to Ezra T.

a

to

,

one

the

break

f

over.

Mr.

M.

Home

of

;

Secretary of Agri¬
culture,
one
would doubtless
learn that this gentleman was

any

any

Family Housing

1 9 54

If

bill, which simply disregards

provide government housing or
government - insured - financed
housing for ALL the people 60
years

Farmers Home Ennobled

..

for

propose

One
would

do

lending

borrower's

White

House.

his "construc¬

was

find¬

in
which
they appraise each piece of col¬
lateral, themselves, look up each

Benson

the approval of the

barriers

trator, however, has made clear >
in recent speeches that this pro¬ '(l
gram is not aimed at putting •
the government in business. It's I
really designed as a construc¬
tive alternative to the Lehman

the
hous¬
ing the elderly is only a be¬
ginning of something that, like
all welfare commitments, will
jgrow and grow and growy it is
after all, only a modest beginning. In view of payroll and in¬
come taxes having the effect of
depriving 99% of the people
ultimately of any possibility of
providing for their old age out
of their own savings, the Presi¬
President's

with

that

to rape.

loans.

Albert
and

of

It

"

Private-Enterpriser

conviction

ground

tive alternative" to an intention

as

enjoy

high
return; on
as
double-guar¬

"Constructive

net

nature

the

the

Benson, the

never

any

on

his

have

this conduct

of

(temporarily,

later find out)

things

anteed

se¬

is

That

such

And

loan's

which

will

doubtless
dismissed

a

are

than to

way

fashioned

"Stop saying 'Good Morning, we gyp'!"

not

pools

certain

and

relatively

a

would

this

ness

gets credit
business that

market

,'

•

large number of banks
ing it much easier to

so

which
its

enters

Substantial reports are that

no

make

government

truly

simply

government,

diluted,

to

they

government

much

how

curity
losses.

is

FHA

The

public

of

loan for housing.

a

course

have

cost

number

years.

home-build¬

the

yields

securities.

the mortgage loans,
into a
10-year

on

"FHA"

interested parties.

into

free

the

is

government

return

as

take-out agreement if the
orig¬
inal lender wants out after 10

enormity of the
attention ex¬

the

industry

funds

limited

more

for col¬

under-privileged.

the

the

pushed

quarters

than

less

at

more

insurance,
various
other

for

include

bring,

a

like

escapes

for

These

the land, except for letting them

in

deal

great

a

improvement

program

elderly of

dime for housing the

rent

is

bill,

as

government

fact,

v

The whole thing, however,

economy-

hardly

to spend

a

on

classes of

be told,

Administration

minded

proposing

under

money

In

something

government

this

so

its

lege housing, even more liberal

in

may

Insurance companies

banks have only to dole out the

go

technical,

Now

note, hold
collect
the

collateral,

money.

commitments.

home

by older persons.
doesn't

the papers,

up

loan

pretty good return

There

or

living

for

available

totally

the

of¬
all

do

guarantee and get 3J/2%

ing

deal is
of FHA

partly

the

client

personnel

write

out

to

short

a

county

—a

in

Another

"FHA"

the work,
•

"FHA"

•

"FHA"

always have more for expand¬

in the 70,000

built.

special

The

make

There is
FHA, no

reduce

to

have

attractive

outstanding commitments, must

housing the
proposes
should be

President

in

come

looser

loans

most

into

fices.

volume of repay¬

what

ments

elderly persons. These persons
would be given a limited prior¬

ity to occupancy
units
of
public

top limit in sight.

no

matter

for

housing

of

care

be

vision.

billion

$3

insured

to

comes

ity for FHA to insure.

facets
provisions

numerous

program

take

to

of

provisions

lending institutions with

re-charging to the tune
of added author¬

needs

pro¬

for instance.

gram,

These
come

v

years.

looser

purposefully

How Insured Loans Work

Furthermore, the Magic Wand

White

new

becoming

of

with housing
loans for longer
as

more

under

govern¬

story

each year.

per

30

ent

behold.

is

terms

hous¬

unit, let this, within
limits, equal the value of the
property, and give 40 years for
repayment instead of the pres¬
able

business,

There

this

On

ing, also insured by the FHA
Magic Wand, Mr. Eisenhower
would raise the amount insur¬

getting
ment

under

indirectly

or

order.

operating

the

but

of

and

up

with

farmers

Farmers Home

WASHINGTON, D. C.—When

series

a

loosen

to

ment

«•-

agency

is

there

amendments

fl

Yl

this

of

loans.

sure

•

•

$125

from

nually

I

proposes

to

TRADING MARKETS

Delhi-Taylor
Fashion Park

Texas Eastern Transmission

Indian Head Mills

Bank of America

Geo.

Pacific Northwest
Pipeline Common
Pan American

Carl Marks
FOREIGN

SCHERCK, FIGHTER COMPANY

SECURITIES

50 BROAD STREET

Bell

Teletype

SL 456




320 N
St.

Exchange

4th St.

Louis

2,

Mo.

Co.

V
:

Riverside Cement

Bought—Sold—Quoted

Stock

Keith

National Co.

Sulphur

Wagner Electric

Member Midwest

E.

Morgan Engineering

TEL:

GArfie)d M225

HANOVER 2-0050

'

•

&

Co. Inc.

SPECIALISTS

NEW YORK 4,

N. Y.

TELETYPE NY 1-971

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Sightmaster Corp.

LERNER i CO.
Investment

Securities

10 Post Office Square,

Boston 9, Mass.
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