The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
\9^
ESTABLISHED 1S39
Rsg.U. 8. Pat. Office
Volume 185
Number 5622
New York
7, N. Y., Thursday, March 21, 1957
Price 40 Cents
a
Copy
EDITORIAL
As
Factors Indicating Coming
Tnrn in Mortgage Market
We See It
"At
the present
time the governments of
France, the Federal Republic of Germany, Italy,
Belgium, the Netherlands, and Luxembourg are,"
according to
the
Kremlin, "preparing to set
in Western
up
new
exclusive organizations, namely
Such
mori market' within the framework of which
they
plan gradually to remove customs tariffs which
are* protecting the economy of everyone of these
countries, the 'free' movement of labor and capi¬
tal, and the joint exploitation of French, Belgian
course, was not news
mas¬
"It should not be
forgotten that
certain quarters in the United States, who are
actively supporting Euratom, are working for the
speediest rebirth of German militarism and the
equipment of the West German Army now being
created with all types of modern weapons, in¬
cluding nuclear weapons.
The creation of
Euratom will constitute a practical step in the
realization of these aggressive plans which spell
danger for the peoples."
.
And
again after
.
.
few paragraphs devoted to
other propaganda designed to foment trouble:
"It is common knowledge that American capital
has further penetrated the economy of France,
Western Germany, Italy, and other West Euro¬
pean countries in the postwar years/ Scores of
branch and daughter companies of the largest
American monopolies and corporations such as
a
a
mortgage market
on
page
25
an
easier
turn is likely, according to
from
shift
restraint
to
recession appears in
market
for
has far
o
oans
ease
if
an
acute
an
The demand
mortgages.
economic
the offing.
stringency in
for mortgage
Not long ago I was reading the transcript of a hearing
held late last year before a Congressional,Committee on
the always fascinating subject of money. Many matters
outstripped the supply of loanable funds,
N ot only have interest rates risen, but many would-be
borrowers have been unable to ob¬
The
reasons
discussed in the give-and-take
were
tain the funds they want.
between members of the Committee
for this aeute shortage
of loanable funds have been widely
and the
discussed in
recent
government
well known.
and
among
these reasons has
sharp increase in the volutae
of
mortgage borrowing. Mo^gage
debt
outstanding, which rose. by
$12.5 billion in 1954, increased by
$16.1 billion in 1955 and by $14.8
a
,
billion in 1956.
This bulge in the demand
for mort¬
it has coincided with
Alfred
J.
—
the pressure of
Corporation bonded
debt, which rose by $3.8 billion in 1954, increased by
$4.5 billion in 1955 and by $5.4 billion in 1956. Corpora¬
tion bank loans, which actually declined by $2 billion in
Continued
on
page
demands
upon
Federal
Reserve
officials
Dr. Gabriel
Haws*
first
in
their
thoughts,
"the maintenance of a
sound people rather than a sound dollar." That admoni¬
tion has lingered in my mind and continued to haunt
sharp rise in business borrowing.
by Mr. Casazza before the
ciation of New York, March 13, 1957.
the
present
a
me.
If
place
to
the
time
has
come
choose between
to
Continued
24
♦An
Mortgage Bankers Asso¬
address
credit
ished
Casazza
heavy
member of the Committee admon¬
a
lo^ns has had a particularly
strong impact upon the capital mar¬
gage
ket because
witnesses
for capital
available supplies,
the resultant rise in interest rates,
the inability of some borrowersindividuals, businesses and govern¬
mental
units—to
satisfy all their
needs, and, of course, the efforts of
the Federal Reserve System through
its credit-restraint policy to resist
upward pressure on prices.
As the hearings drew to a close,
banking, mortgage and
circles, and are now
Chief
been
*Aa
Continued
trend toward
Casazza, to be magnified and accelerated by Federal
Reserve
news—
at all—the
ters of the Kremlin, then set off this blast at the
United States:
Mr.
the
Having given the world this bit of
which, of
a
Recent months have witnessed
possessions."
a
lesser increase in busi¬
a
market for mortgage loans during the course of 1957."
countries (the so-called Euratom) and the 'com-
/
debt,
viduals "will combine to create
the atomic agency 'community' of the above six
and Dutch colonial
principal economic assistant perceives in the
a time when we shall be
trying to overuse
rather than underuse the economy, characterized by a
labor shortage, and maps a road assuring economic suc¬
cess
designed to avoid prosperity's problems of price
inflation, inadequate savings and building competitionshelters. Mr. Hauge prescribes prudent' restraints from
time to time via general monetary and fiscal controls
and appeals to labor and business, which he doubts is
naive,; impractical or visionary. Rejects: notion that
sound dollar is in contradiction to sound people; depres¬
sion psychosis and idea that prosperity and price stability
is unattainable; and view that we can avoid fluctuations
such as that experienced since World War 11.
decade ahead
borrowing, and heavier bond absorption by indi¬
ness
Europe two
President's
banker holds out the prospect that
smaller rise in mortgage
]
Special Assistant to the President
By ALFRED J, CASAZZA*
Prominent savings
Prosperity
By GABRIEL HAUGE*
Vice-President, Savings Bank Trust Co., N, Y. City
statement issued late last week by
a
Problems oi
on
a
sound
page
30
address
by Mr. Hague before the Economic Club of Detroit*
March 11, 1957.
REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 36.
SECURITIES NOW IN
securities
DEALERS
>
are
afforded
a
State, Municipal
in
and
U. S. Government,
Stale and
STATE
Municipal
MUNICIPAL
and
11
Securities
telephone;
m
Public
"VsstbV
COPIES OF OUR
BONDS
HAnover 2-3700
Housing Agency
Bonds and Notes
"ATOMIC ENERGY
REVIEW"
CHEMICAL
FOREIGN
CORN EXCHANGE
Available
on
LETTER
ON
Request
THE FIRST NATIONAL CITY BANK
BANK
BOND
DEPARTMENT
30 BROAD ST.,N.Y.
ARE NOW AVAILABLE
OF NEW YORK
Burnham and Company
MEMBCX-S
NEW
YORK ANO .MEXICAN STOCK
15 SROAD STREET,
CABLE:
NEW YORK 5, N.V.
•
DJ 4-1400
To
T. L.WATSON &Co.
established 1832
Members
INSURANCE STOCKS
Active
Exchange
Banks
STREET
NEW YORK 4, N. Y.
£}0(ltAwe4t
bridgeport
•
perth amboy
THE CANADIAN BANK
We
Orders
Executed
CANADIAN
DIRECT WIRES TO
On
NEW YORK
at
All
to
buy
expire
the
Direct
Regular Rates
on
the above rights
May 17, 1957,
current
Private
market.
Wires
to
Toronto, Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax
DEPARTMENT
1-2276
MONTREAL ANO TORONTO
Goodbody
115 BROADWAY
offer
which
&
Co.
1 NORTH
LA SALLE ST.
CHICAGO
Doxmioti Securities
Grporatto/i
40
Exchange Place, New York 5, N. Y.
Teletype NY 1-702-3
national
bank
of india, limited
Bankers to the Government in
Rights
SECURITIES
Canadian Exchanges At
COMMERCE
OF
MEMBERS NEW YORK STOCK EXCHANGE
COMPANY
DALLAS
Brokers
BANK
34 offices from coasi to coast
CANADIAN
Teletype NY
25 BROAD
and
Chase Manhattan
120 BROADWAY, NEW YORK S
Maintained
Markets
Dealers,
Commission
New York Stock
American Stock Exchange
FIRST
Members New York Stock Exchange
Dept. Teletype: NY 1-708
TEUTVf* K*
COCUXNHAM
Net
BANK AND
THE
Harris, Upham &
EXCHANGES
Bond
DEPARTMENT
BOND
REQUEST
WHitehall 4-8161
Kenya Colony and Uganda
.Head Office: 26 Bishopsgate,
London, E. C. 2.
.
West
End.
<London)
Branch:
13/Stir James's Square, S. W. 1.
Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika*
Uganda, Zanzibar, and Somali-
Branches In India,
i
land Protectorate.
Authorized Capital
£4,562,500
Paid-Up
Capital
£2,851,562
Reserve
Fund—
£3,104JI87
•The Bank conducts every description of
and exchange business.
Trusteeships and Executorships
banking
also
undertaken
2
The Commercial and Financial Chronicle
(1334)
.
.
Thursday, March 21, 1957-
.
\
The
Dealers only
For Banks, Brokers,
participate and give their
they
transaction
you on every
—the easy as
difficult
for
directly
be regarded,
to
WILLIAM
complete facili¬
work
ties
long experi¬
our
New
as an
vestment
GUMPEL
II.
York
City
as
the
New York Hanseatic
Corporation
Established
1920
There
Stock
Exchange
.120 Broadway, New York 5
Teletype NY 1-40
CHICAGO
•
Wires
to
SAN FRANCISCO
•
Private
nor
with
I
*
Principal Cities
'
/
cent's
those in oil.
as
method
in
.
■'
_
? penheimer,
Naess
-
-
Cres-' '•
&
■
..
■X
possible."
interesting
J
ty
.
reading.-I do
u
of
the
surrounds
i
a
zation
3,000,000 shares.
dividend
There
by the
case
William H. Gumpe!
with Crescent
known
formerly
Deep Rock Oil.
Corporation,
.
took
surprised
were
place.
offered
company
,
.
„
Financial circles
1,000,000 to
SCRIP
-
Since 1917
stock
an
McpONNELI&fO.
Members
York
New
American
Stock
Exchange
Stock
Exchange
120 BROADWAY, NEW
YORK 3
TEL. REctor 2-7815
Trading Interest In
American Furniture
-
,
be
Established
facts
-'
Home
Ernest
Oppenheimer
of Scher-
111
own. shares, thereby reducing
ierrea.
STRAOER and COMPANY, Inc.
Lynchburg, Va.
LD 30
in
an
Week"
leum
"How
amcie
of
i-euo-;
TWXLY77
",vw,"vj
Gar-
adding
of CRESCENT
,
PORATIONThe
with
COR-
story of what we
Rock should now
Deep
"e told."
Under
its
new
Rocks
1930
day
a
With
ESTABLISHED
than 1,000 bar-
more
of
crude
nrndiictinn
production
intPi-Psts
in
Kan-
sas
Alberta.
Canada,
Coloiado,
Oklahoma, New Mexico and Texas,
Crescent has
3T Wall St., N. Y,
Tel. HAnover 2-4850
a wholly owned subsidiary, Hugoton Plains Gas & Oil
with an average daily production
of 65,000.000 cubic feet of gas, and
Crescent retained
.A
in
^
TMT Trailer
Philippine Oil
a
17^2% interest
Siboney Caribbean Oil, owning
in Cuba, and also
5,200,000
acres
owns
interest
an
in
the
program
con-
Under its diversification
Crescent is about to
ex-
,
;h
have
led
PIPE
*
WISENER
split
the
at
stock
Searle.
situation,
for
an
but
patience.
nresontc
average
nricp
not
-
as
1
timne
means
of
is
Smith
G.
Kline
for
investor looking for
reeu
success;
greatly impressed by the
>
,
daring
.
nast
,
.
I
manage--
oerformanre
Federal Uranium
Big Horn Powder River
with
new
4.
Corpus Christie Refining
<
•
•
•
•
CAPPER & CO.
1
Exchange PI., Jersey City, N. J.
HEnderson
2-8570—Teletype JCY 119
Direct Wire
Dlgby 9-3424
its
.
'
.
present
ation
sxt
rrru
4:
4
4U
1-
n
first West of the Rockies.
make
ite
future of
project the
synthetic graphite plant, the
key
It
will
The
is
a company whose situ-
unique
'
in
many
ways.
x
management
to
own
high purity synthetic graph- the "Magic Formula," adding
mys-
from
petroleum
coke
and
its
tery to
a
stock
seems
with
romance.
I
products will be marketed during
plunge for CRC.
the second quarter of 1957.
est-priced oil stocks, not dealt in
ing the future
Garbade
light"
amount
as
states
is
of
this:
an
that
of the low-
Independent, Canada,
but
his
the Big Board, appealing
"The
leverage
Form-
one
for
"guiding
greatest
our
York
on
right
here
in
New
only to those, who feel: "Nothing
in- ventured, nothing gained."
■
tion
^
are
investiga-
16-page booklet.
Copy
for
a
J. R.WILL1STON&CO.
wide
50
a a
l
OTHEJt STOCK ANO
115
19 h e o
NCW YORK STOCK
t a a 9
EXCHANGE ANO
COMMOOITY iXCHANOSS
Broadway, New York 6, N. Y.
range
Over-the-Counter
Quotation Services
for 43 Years
In addition to
"Metis," the company
some
e a t
MtHStRS
The most
skm disorders, Metreton for allergie3, Sigmagen for rheumatism
and Metibiotic for bovine mastitis
(a cattle disease).
f
Meticorten
applications, including Metimyd
COj diti<^ris' ^eri-Derm for
'
a
$1 per
*
«
and Meticortelone, used for the
^u3
J*heun}atoid arthritis,
have been combined
ties.
our
earnings
;
factures
results of
:
h°Ws f eadi"S ^
the
.
by research and field trips,
presented in
sell at
eigni
'
•
sound principles for the with other drugs
pand into the petrochemical field,
-
Appraisal
(including up-',
foreign sub-5
important products
am
The
;
&
manufacture of antiaidhntic- preparations, antihistammeS' ^ a^ f€mal^x hor"
.mones, chemotherapeutic agents,
an
Prospects
$1 .bv
011 the continuation of the and X-ray diagnostics.
ment's
EMplre 3-020*
.
Investment
d"
^
^
latl0n
'v
-
Toronto, Canada
Background
Thfonfy
i trici
share
per
tT exScfse'Vstock
no
$7
proximately
sidiaries).
Lrdtiddends onir i^ Vslecu'
Tatirt_
COMPANY
about -23-times
14 to 16 times earnings
nnnrppiatinn
willing
It
J;
il
$7
j
<
-
Present
French, PHzer and Merck
interesting growth
also a speculation
substantial
gj Yhose
AND
LIMITED
.
King St West
trading Dept.
W
An
management
at
panies,! such
present
(Crescent
name
)
.*
73
companies
jus1ie^' inis . stock presents not times consolidated 1956
growing
LINES
Limited
investors .to
on
oott^inf eximplTis6
selling
.
.
only by its
—
in
exceeds
Although near Deep exception
has
been
Sobering
all-time high of 16 (ad-,
whose market valuation is eight
this
of
'
Vith
effort
now
high value
J
level'of 15.
lusted)
Securities
These favorable consid-
a
Crescent
Kuwait— management's
Saudi-Arabian Neutral Zone
cessions.
Stratford Corp.
Wllion®
recommending the stock of
Corporation after the
Company has
the
TRANS-CANADA
I do nothesitate to repeat the. current earnings/The common
Sa?e wordlng a"d reasoning now stocks of other leading drug comwhen
five-for-one
rels
hpi
whlch
of 74 in 1955 and of SO in 1956.. Position ^sotmd
(By comparison: 54% of the .stocks and top-notch
engaged as an oil and
gas producing, royalty, engineermg
and
investment
enterprise,
pany is now
Ail
n„i,,ro
;
high
a
...
CRES
name
.
coverage
tal&Y St0Ck
19o6.)
CORPORATION
CORPORATION, the"enm
the com-
Trading Markets Maintained
in
Sman affbrfinn^m
"""
of
.
"to
Rock
!955, and the stock reached
Present and Future
CFNT
CENT
6reene«Xompara}
j
declined in
Anschutz Drilling
Bought—Sold —Quoted
ui
Coniorati^n iitiierations
Corporation in... July,
j
£ e..:?ZSt?Z Crescerft
that "with the Crescent.
'
saBike evel-tin^
pointing Mo® eover,'tL ithlcatdmgTndus:
iwaaiuimj
^hlngeSTrL Deel
aJeas
au
developments in the future,,
inde- with the resulting capital appreci-
emergence
did
ber, 1954 at a price of 45,
outsSta™ding°researeh
1956,- sr«at
23,
major goes
President W H.
pendent,"
moves,"
in
Nov.
oil
an
y
Branches
Bankers
.
Attracted by the, extraordinary
value convertible preferred stock, financial
transactions, I recomof
which it
distributed
450,000 mended Crescent under, its old
shares in exchange for 150,000 of name, Deep Rock Oil, in Decernits
70
Broadway,N.Y.6 COrtlandt 7-5680
Firm
pipelines InTmaTkettag prop^ ^tension into the petrochemical' wrfh sizable. increases in the ehil
takine
oavment
674 880 field>
dren and the aged, the largest
Life Insurance Co. of Va.
1897
—
Investment
specialty man-
..
Commonwealth Natural Gas
Tokyo
&
ethical drug
..
shares of the latter's 4%% $25 par
Bassett Furniture Industrie*
Office
iirokers
reffnery
..
■
Yaitiaichi
Securities Co., Ltd.
a
.
*
/
With about 50% of the author- ufacturer. In order"to "bring " this
mrTiinn
nnch
and
<^5 million in ized caPkal stock in treasury or company into better perspective,
ctnnkDppn Rnpk
in turn leased not issued> Plus the °ne million it seems desirable to make some
back the
pipelines etc
$25 Par value preferred stock au- observations about the ethical
fnr
neriod of eieht vears
at a thorized in 1956, this highly capa-,drug
industry in general. The
vearlv rental of $250 000
The air ble
and Youthful management outlook for this industry appears
of mvsterv that surrounded these team *four of the five men are highly promising in view of its
transactions^ climaxed when on under 40 y**r* of aSe> has many impressive growth rate, with sales
Anrfi 1
iTeen RnHktrans'- millions of dollars at hand for use doubling every five years since
fe?red to Keir-McGee OU Indus- at its discretion for the intended 1935. Future growth is ensured
tries the leases on the refinery
diversification program and the by favorable population trends,
as
write,
or
ing Corpora¬
tion, a leading
A^lnHpnnPronertComninv
ties
«
information
current
Call
obtain in the
-
v
For
level. The
case
'•
"
years
appear to be stirring due
improved Japanese, economy.
to
unusually
above
practically
at
now
attractive
three 4J/2% Kerr-McGee preferred
shares for each of its own shares
prjse
can
remaining
stationary levels for three
,
purchased at
series
erties, refinery, pipelines and mar-
-
magnified if
its common
However, the
an exchange of
Deep Rock announced a
stockholders, who desired to
of
huge
transactions
in
keep funcjs invested in an income1954, culminating in the sale of
producing security. The omission
virtually all its producing prop- 0£ the dividend came as no sur-
office*
STOCKS
after
studying such
a
company is
when
i
~
branch
our
JAPANESE
The
incentive for
A 25-cent initial
now
trlrei to
....
to command investor
rare
1KloWle,A|a—
}
that tripled its sales
outstanding. Divi^".
dends have been paid without in-f
terruption since 1945,;• but were
suspended in 1955 when the tran¬
sition
Direct
'
stock
as
w
■
Birmingham, Ala.
.
curiosity.
paid after, the split.
1,391,325 shares' of
was
are
common
management.
the
increased from
ciently
NY 1-1557
Now Orleans, La. -
* and septupled its.earnings in the
brief period of two years is suffi-
:
November, 195a the stock was
split five-for-one and the capitali¬
transactions
made
a company
.
In
cer-
-
York and 'Baltimore
St., New York 6, N. Y.
IMiw*«r 2-0700
.
laxestiJtenL Lauu-ehNew
rnn/»in«inn
__
,
huge
n
by
"We
,<
_
> -
Members New York Stock Exchange
American Stock Exchange
19 Rector
Naess & Thomas, New York City
place no limit on- - >
w
V"'; V
future expansion, but we will Scheming Corporation
.
its
but
price,
t
Garbade:
move¬
s
impressed
exercise caution."
often mysterio
feel
as
principles,- summed
-
our
the
mean
I
little
as
■
Members
,»,
possible, while risking
'
r
Steiner, Rouse & Go
enteriiig' new/
^
stock
a
was
RIGHTS
York
Panies* with the parent corpora-;■ ERNEST OPPENHEIMER, Ph.D.*
Research Department
tion getting as Hiuch equity as
.
■
Research^ Dept.,
Thomas,. New
City. (Page 2).
to form subsidiary „com-
is
%./
Bought—-Sold—Quoted
Op-^
Sobering Corporation—Ernest
minU
the
this 'principle
...
2).
fields
Exactly such
Specialists in
Louisiana Securities
Gumpel, New York City (Page
many people who like
ip
«iisnpnRp
and
the suspense and pxpit.pinpnt ronexcitement con-
mystery that
BOSTON
well
as
are
ments
Member
PHILADELPHIA
risk
Alabama &
.
-
be,
to
applies to the outside investments,
not
WOrth 4-2300
dollar
of
mum
makes equally
American
Selections
tained in mystery stories, but it
happens sometimes that the story
well
ones.
Associate
Their
particular security-;
a
intended
not
are
offer to sell the securities discussed.)
Crescent Corporation
of
„i
for favoring
(The articles contained in this fornm
are
and
reasons
Week*s
Participants and
Crescent Corporation—William H.
On Your Routine Trades, Too
because
This
Forum
A continuous forum in which, each week, a different group of expertsfin the investment and advisory field from all sections of the
country
Try "HANSEATIC"
ence
Security I Like Best
ethical
manu-
special-
National Quotation Bureai
*
The,fact
that
great emphasis
Schering
Established 1913
places
on research augurs
Continued
46 Froat Street
CHICAGO
on
page
27
.
New York 4, N. Y.
SAN
FRANCISCO
Volume
185
Number
5622
The Commercial and Financial Chronicle
(1335)
INDEX
Government's Continued Role in
Financing oi Housing Industry
I
Articles and News
Problems
By THEODORE J. KREPS*
,
Professor, Graduate School of Business,
and participa¬
financing the housing industry is found by well known
Californian Economist after classifying. four main sets of
of the
Indications
of the President's
This Business
-----
outlook, both long-run and
short-term, is that .governments,
Federal, State, and local, will con¬
tinue to participate in the financing of the
numerous
housing
dustry.'
in¬
Investment
in
are
the
main
sets
of
Impact
"In
rea¬
continued
•
lary aims
Theodore
J.
and
financial
new
num¬
with
as
small homeowners,
the needy, aged, veterans, military
Ipersonnel, defense workers,
growth enterprises and small busi¬
"
I
Free
"(8)
trade
the
:
Money
Eisenhower
the
of
elements
of
i
i's
n
analyzed
^national
on
\the
strength in
other
free
nations,
we
'
the
of
the free world.
Modern
product of economic
health and social well-being."
.
essentially
a
.
in his Bridget Message of Janu-
ary
!
McLEAN
12
_____
RADOROCK
13
_
RESOURCES
Compensation Program for Professional Executives
_
UNITED WESTERN
14
___
MINERALS
Republicanism Goes Back to Abraham Lincoln
/ Haunts
Optimism—Col. Herbert G. King
vs.
\
23
J.F.Reilly&Co.Jnc.
Members
'
Viola
MacMillan
Renamed
President
of
Developers Association
Prospectors
Spiral
1
23
___
(Letter to Editor)
tion of
(Boxed)
*An
Report
address
Second
Executives
Professor
by
Annual
Senior
by
Co-Sponsored
of
Association
Bankers
America and
The School of Business
ministration
of
versity,
be¬
Kreps
Southwestern
Conference
the * Mortgage
23,
of January
Methodist
Southern
Ad¬
private
international
economies
t,;.j
.
.
some
resources
4V
As
We
See It
■■■'■;
'' V'
'
*
•
"
TMT Trailer
.
■
7
.■
■'
'
;
'•
.
■
(Editorial)
Cover
;
of
Bank and Insurance
Stocks____
lu
__.
,
22
must
Coming Events in the Investment Field
Dealer-Broker
Investment
___T_____
Pacific
hold back in others.
con¬
From Washington Ahead
Recommendations
8
21
of the News—Carlisle Bargeron
Indication's of Current Business Activity-^
Mutual
For ex-"
Singer, Bean
& Mackie, inc.
14
46
^
Funds
44
C News About Banks and Bankers.
ample, the needs for schools, high¬
ways, and homes are so urgent
that I am proposing to move ahead
with programs to help our states,
HA 2-0270
Observations—A.
employment opportunity, and
fiscal
Wilfred
Our
Reporter's
Public
May
Securities
N
Now
in
Direct Wires
29
i.:
i.
_j._—_____
f,
47
——__
'
.
■
•
Registration
;•
Federal Uranium
'
36
Prospective Security Offerings.
Radorock Resources
40
____7
•
v.
monetary policies.
Securities Salesman's
Implications of Economic Growth
The Market v
(1) The primary requirement
for sustained economic growth is
sustained
investment.
investment
depends
Corner. 1
43
-
.
.
The Security I
and You—By Wallace Streete
Like Best
32
_J'
•
—
,
"
.
Twice
'
llllrilllillu 0 i uulvo
25
BROAD
New York Stock Exchange
.
m
WILLIAM
B.
COMPANY, Publishers
DANA
REctor
Members
■
:
Albany
•
Boston
Nashville
•
•
Chicago
Schenectady
•
•
Glens FaTts
Worcester
'
j
V
X.
C.
Kng-
San Juan Racing
.
New York 7. N,
2-9510
to
HERBERT
York, N. Y., under the Act of March -8, 1879.
Y.
Sebacription Ra.ea
_
WILLIAM
DANA
Thursday,
SEIBERT,
March
,
9516
SEIBERT, Editor & Publisher
D.
21,
,
President
•
Reentered as second-clasi matter February 25, ^1942,
at the post office at New
United. States.
In
Territories and
Pan-American Union, $60.00
Possessions,
Dominion
of
Canada,
U.
Members
per
$63.00
year;
per
B."
of
in
W» V. FRANKEL & CO.
"
INCORPORATED
39 BROADWAY, NEW
YORK i
year.
WHitehall
Other Countries, $67.00 per year.
1P57
3-3960
Teletype NY 1-4040 & 4041
Every
TELETYPE N. Y. 1-5
•
~
Subacrlptions
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
***
Copyright 1957 by William B. Dana
Company
Reg. U. S. Patent Office
25 Park Place,
Spencer Trask & Co.
'
1 DraRprs' Qardens, London.
land, c/o Edwayds & Smith.
Weekly
CHflONICLE
FINANCIAL
CTdPKC
Gulf Coast Leaseholds
48
COMMERCIAL aind
Th*
specialized in
TMT Trailer Ferry
'
,
.
have
2
4
Washington and You
•
page
Published
D E £ T D D T II
_______
______
The State of Trade and Industry
vigorous
on
on
Big Horn Powder River
16
Sustained
aggregate demand, stimulated by
Continued
to
43
Securities
(
\
Exchange PI., N.Y.
Philadelphia * Chicago * Los Angeles
31
_____
40
Teletype NY 1-1825 & 1-4844
4
——..
—
Report
Utility
Railroad Securities
(3)
and
20
_
Our Reporter on Governments
cities, and people undertake such
construction at af prudent rate."
budget,
Uranium Mines Co.
8
of in vestment ..while
compensatory
Common & Preferred
Hycon Manufacturing
34
Einzig: "Britain's New Labor Crisis"
forward
piove
Bookshelf
_
productivity of our
Schools, roads, hordes
areas
Ferry
Eastern Industries
1
1
1.
!
.
must
Emphasis must
We
."V•
,,
f.
promoting, through
enterprise, the develop¬
and
Uni¬
D
JCY 215
29
Regular Features
c
upon
Dallas, Texas.
For many years we
HEnderson 4-8504
Teletype:
28
•
national
our
forward.
go
Exchange PI., Jersey City
DIgby 4-4970
;
Inflationary
.____
Can We Make Foundations Solid?
-
Salt Lake City Stock Exch,
Spokane Stock Exchange
1
and
_.
Fred F. Kopke Blames Wage Pressure for Price
"Progress toward greater equal¬
ity of opportunity for all of our
people as well as toward a bal¬
anced development and conserva¬
tinue
,
18
widely
;
INDUSTRIES
FEDERAL URANIUM
17, as further amplified by his
Economic
fore
11
—Sinclair Weeks
/
vigorously prosecute meas¬
Among these corollary policies,
ures
that
will. promote
mutual -those of greatest importance"-to
strength, prosperity and welfare housing finance are (1) sustained
within the free world. Strength is economic
growth (2) high-level
v
'
_
•'
*
—Robert P. Meiklejohn____
should
^ v
U. Cobleigh
Haziitt-
Businessman's
needed.
the following terms:
.
BARUCH-KENILIND
10
Economic Effects of Possible Armament Reduction
Effective
States and the rest 'of
the United
in
~
messag,e,l
Union
10 of this year,
"With
FERRY
Free Capital Market
com¬
investment essential to
and
economy.
.
Market and
Eeendfttic Str£H|rth ~
President
State
•
,
,
Increasing
growth
we
Jan.
Glass—Ira
at home and abroad; and
'
—-
TMT TRAILER
Areas
"(7) A well-balanced choice of
ment
nesses.
A
Economic
Fiscal integrity;
programs
institu¬
policies of confusing and conflict¬
ing impact on housing finance.
Fourth, the continued attractive¬
ness, from a political and humani¬
tarian point of view, of "doing
"something" for vote - numerous
such
prosperity
WHitehall 4-6551
6
Various
on
9
a
Dept.
STREET, NEW YORK
Economic
growing
and
ural resources;
Third, the increasing
regulatory agencies
groups,
and
—William McChesney Martin, Jr._________
\
-
"(6)
WALL
Federal Reserve Board Measures Disarmament Impact
-
Wise conservation, devel¬
opment, and use of our great nat¬
oppor¬
of
in
—Henry
.
"(5)
Kreps
ond, the substantial branching out
into homd-financing activities by
ber
Structure
__
Increase
.
.
tunity, and compensatory budget,
fiscal, and monetary policies. Sec¬
tions.
Heffernan
Population
'•
as
despise
can't he beat!
OIL
Class
opportunity and the well-being of
all our people;
'
as
employ¬
rival
Interest
-J. Sinclair Armstrong..________________
•
corner
obsoietes
buy
.
'
"(4) Enhancement of individual
healthy eco¬
nomic growth,
ment"
with
economy
corrol-
"full
6
--
healthy
A
shared;
goal involving
such
the
Successful Functioning of
A.
policies
making plans for the
"(3)
major
a
of
to
Obsolete Securities
99
na¬
tional strength
others
Our prices
5
Future—Anthony Arpaia_____:
Banking,
.
pursuit of
as
?
«
What
.:—Roger W. Babsori
"(1) Peace, justice, and freedom
for our own and other peoples; '
"(2) Powerful armed forces to
deter and, if need be, to defeat
aggression;
„c •-
four
First, the
sons.
follows:
eager
of your
your
Bigness, Or, The Bigness of Business
Outlook—Paul
.
ing year, I have been guided by,
the following national objectives:
\
There
■
economic
us
We're
3
out
Bring
Telephone:
*
the President stated the composi¬
tion of national strength and its
corrollary
Come
Blough__
Railroads: Their
The
The
of
—Roger M.
to Congress, objectives
financial and non^
financial vested interests and grass-roots forces within the
housing industry. Professor Kreps provides insight as to how:
(1) budget figures understate government's actual economic
and financial impact by a great deal; (2) general credit con¬
trol acts to generate forces clamoring for selective credit con¬
trols; (3) housing stimulation occurs during prosperity as well
as labor
surplus periods; and (4) automatic and non-auto¬
matic counter-cyclical policies directly and indirectly affect
housing finance.
Employment Act, and the
LITTLE 1ACK HORNER
Cover
.
Industry—Theodore J. Kreps_
;
,
found in the economic
are
message
Cover
Government's Continued Role in Financing of Housing
tion in
for this outlook.
Page
.
Prosperity—Gabriel Hauge
—Alfred J. Casazza
No signs of diminution of government interest
passages
of
Factors Indicating Coming Turn in
Mortgage Market
Stanford University, California
reasons
3
Thursday (general news and advertislng issue) and every Monday (complete statistical issue — market quotation
records,
state
state
corporation
«nd
and
Other
Chicago
ettv
city
news
news,
Offices:
3.
111.
news,
J35
bank
ete i
etc.).
and
.
_
Publications
Quotation
*4000 per year.
clearings,
Record
—-
Monthly,
(Foreign postage extra.)
„
,
the
La
STate
Salle
St.,
2-0613);
eitrn
be
s>'bscrlptlnns end
made
In
New
Direct
PHILADELPHIA
Wires to
„
DENYfi*
.
.
Wote—°n account of the fluctuations In
^ Qf eyf,hange
xem,ttance. lor lor-
-
So^ith
(Telephone
Other
Bank
advisements must
York
funds.
SALT LAKE CITY
"N
••v
4
(1336)
The Commercial and Financial Chronicle
freeze
est
these people
position of the
SEC
is
amazing. In lieu of providing the
indispensable protection for the
unsophisticated
unwary
By A. WILFRED MAY
buyer,
the
length
r
Carloadings
Retail
•»
Trade
Commodity Price Index
Food
of compelling
and
an
of specified termination date, surely
Who else
is
there to
protect
constitutes a most unfair headsmoney rates, with the possibility
him; with the knowledgeable in¬
of future reversal, brings to the you-win-tails-I-lose arrangement.
stitutional buyers
largely turn¬
fore
the importance
of the re¬ The valuable unilateral privilege
ing to private placements to avoid
demption fea¬ of "welshing" on the contract can this onerous
feature, and even
be thus freely exercised by the
ture in bonds.
with the pension, fund adminis¬
A l .s o is the
borrower -if
changed
conditions
trators, because of conflicting in¬
long-standing make this advantageous to it; such
terests, frequently displaying split
abuse inherent elements including a fall in in¬
personalities toward this proviso
in that device terest
rates
or
perhaps an im¬ in the bond
contract?
now
high- provement in financial strength.
In Double Jeopardy
lighted by SEC On the other hand, the buyer is
C h a ir ma n
afforded no opportunity to gain
So, " as the arrangement now
Armstrong's from a subsequent rise in interest
stands, the bond buyer is saddled
recent affirm¬
rates, nor protection against the with
the
outlook » whereunder
ative
re
in
borrower's
financial
deteriora¬ he
may be forced into current in¬
Production
Electric Output
State of Trade
actually
unfair arrangement by admin¬
istrative fiat..
I LOSE
Steel
The
public
Commission
the
to
goes
WIN —TAILS
YOU
HEADS
level.
rate
The
Observations.
Thursday, March 21, 1957
.
into the low¬
interest
average
.
.
Industry
Price
Auto
Production
Index
Business Failures
The current major hardening
,
-
-
of
tion.
inclusion
In
dorsement;
i t
s
in
public util¬
ity issues, j
Wilfred
A.
Relatively
in f r e q uent
previously,
May
its "tough" form,
the borrower's redemption privi¬
lege
came
into
great
vogue
in the 1930's.
Declining interest
particularly
rates of that
in
period brought home
fact, the buyer can make no
progress in equal
protection, as
perhaps by willingness to pay the
equivalent
.want
to
penalty
get
instead
97
attractiveness
contract,
his initiative
context
At
of
public
SEC
the
authorities,
and
the
State
some
borrowers
deavored to insist
of the
aegis
case
in
traditional
our
have
en¬
the privilege
on
during all times.
Drastic
Past
Experience
In the 1953-1954 period, perhaps
harboring
'
analogies with the
present, the sagging of interest
rates following their rise entailed
holders'
that
some
wholesale
loss
callable.
were
of
bonds
In fact,
three
issues, California Electric Power,
Central Power and Light, and Cen¬
tral Vermont Public Service, were
within
called
issuance.
Light
fore
a
And
their
Washington
Gas
actually redeemed be¬
was
first
its
after
year
interest
payment
date.
The
Securities
Exchange
endorse¬
ment it attributes to an alleged
mandate
of
the
Public
Utility
Holding Company Act to protect
consumers
via
the
price utility
companies pay for their money.
One-Way
Although
and
the
the
growing
financing
Street
make
place
the
of
bond
matter
par¬
ticularly important now, the basic
gross inequity of the call feature
under any attending circumstances
should
be
realized.
The
routine
whereby .the borrower only is
given the very valuable option to
call
off
"the
deal"
before
the
business processes of the
market
place,
makes
borrowing
more
difficult.
This is evidenced;
by the recent bond financing dif¬
ficulties
in
the
affected
utilities
field, with the knowledgeable in¬
stitutional buyers forcing direct
placements with freedom from the
punitive call feature.
ever
investors
charges
the
with
devoting major
attention
to
protecting the in¬
vestor.
In fact the preamble of
the
cited Public Utility Holding
Copipany Act states it this way:
"...
It is hereby declared that the
wary
call drawback, with even
sion funds beginning to insist on
its elimination. Texas Gas Trans¬
mission
presents
example of such
clear
recent
a
issue depend¬
an
institutional
on
their
realization
buyers.
of
the
And
im¬
call
ance
raising borrowing costs.
terests
rities
public
of
interest,
investors
in
the
the
in¬
secu¬
of
holding companies, and
subsidiary companies and
affiliates, and the interests of
their
of
electric
may
be adversely
(Italics ours.)
And
as
a
consumers
investors,
lion
of
affected."
Where
is
The
the
call
fact,
same
many
time
the
80 mil¬
insurance
them
as
political argu¬
long-term
system
is
of
of
one
feature
the
several
is
inserted,
bond
cardinal
terms
contract,, it is often
partially compensated for by
higher current interest payments,
thus
even
stated
obstructing the
reason
SEC's
of consumer-protec¬
tion for- its action.
In
connection with the impact
borrowing costs, the traditional
(or at least negligible)
arrangement in government bond-
call-free
life
a
as
on
Segregating
consumers
ment.
of
the
at
including
holders
policies.
the
matter
are
effect
of
gradually
issues must be borne in mind.
both
its
Savings
market
open
Bonds
the
thereby paying
issues
Treasury
is
interest
lower
a
In
and
rate than it would be with
a
call
to
provision.
A New Scientific
Study
impartial overall study of bond"
redemption features is under way.
an
Corporation
Specialists in Natural Gas and Oils
ended
of
1956.
pointed
The
noted
were
in
most
the
,
.
year
/'
ago.
;
the
Financed
by
Association
ing
opening of its Tenth Office
the
of
conducted
sales
tinued
at record
ldvels.
Life
Insurance
America
by
it
the
early Feb¬
declined, bank
loans to business increased."
In
the
V;
:
,
of
posed
Federal
new'high."
-
.
.
Behind the shift,
pickup in plate, structural and pipe book¬
ings has partially offset the dip in sheet and strip demand. As a
a
result, tne downtrend in steel order backlogs has been halted at
temporarily. Mills are hopeful that a pickup in automotive
least
and appliance sales will reverse the soft tone of
recent weeks and
spur steel users to a rash of protective
ordering. J
) •
Another hopeful note, declares this trade
weekly, is the indi¬
cation
from
inventories
sheet and
met, but
in
time
too
time
that
Spot
some
in
the
consumers
for
orders
even of bars, is the
sudden turn
a
a
to
thin.
strip,
have
emergency
tipoff.
overall
Pocatello, Idaho
Brigham City, Utah
Idaho
Falls, Idaho
Twin Falls, Idaho
Ogden, Utah
Gannon
Branch Offices:
,
cut
their
shipments
These orders
of
being
leave
market could
are
some
fix.
(:
An "Iron
Age" survey indicates that the present emphasis on
inventory reduction, largely in flat-rolled, may come to a halt
early in May. Two reasons for this are that some consumer inven¬
tories
will
flurry
of
be
leveled off.
when
the
down
price
to
a
hedging
But
bare
minimum
among
hedging this
year
users
and
there
whose
could
be
inventories
a
have
will be nothing like past years
possibility of
a strike was an added incentive.
Most
not interested in stocking up prior to the
expected July price boost.
•
•»
'
Oddly enough, this trade magazine notes, some analysts insist
that overall steel inventories continue to rise.
They look for a
buyers
say
they
are
.
leveling off, followed by a downturn, about mid-year. This ap¬
parent contradiction is due to the fact that overall steel shipments
running ahead of estimated consumption. This is largely be¬
cause
of
continuing strong demand for the so-called heavy steel
•
" '
'.
/ >
A prediction by this tirade
journal that while operations will
slip gradually, to ward the 90% mark over the next several weeks,
"Iron Age's" previous prediction of a 95-96%
operating rate dur¬
shapes.
•
,
ing first quarter will be substantiated.
.
As for the second
quarter, the relatively sharp dip in the
early weeks will be offset by counter-seasonal influences during
the latter part of May and most of June.
The second quarter
operating rate will average close to 90%, concludes "The Iron
Age."
Jn the automotive
truck production
industry last week
a
2.9% gain in car and
marked United States operations.
"Ward's Automotive Reports" said this week's volume com¬
pared
favorably
with
the
1957
high
of
170,120
reached
in
the
Feb. 4-9 period.
is
manufacturing and resumption of Willys operations after a oneweek inventory shutdown, plus increases at Ford and Interna¬
tional Harvester.
The
four-week
strike
at
Eaton
axle plant, Cleve¬
heavy-duty truck manu¬
facturing at International Harvester where 1,000 workers already
land,
is interfering with medium-
Mfg. Co.
and
be¬
Continued
representatives
on
page
35
from
Power
and
THOMAS F. WORTHINGTON
Commission, the
Exchange Com¬
similar
busi¬
and
groups.
JEANNE RICE GURIAN
perspec¬
Resident Manager: Morton Lesser
Salt Lake City, Utah
'
•
-The steel market outlook is brighter this week. Order volume
has picked up and the turxi for the
better probably will be re¬
flected in May
shipments, states "The Iron Age," national metalworking weekly.
/
.;
•
'
i
The topics to be newly
explored
will
include: historical
N. J.: HEnderson 2-1000
Manager Trading Dept.: Lester F.
Denver, Colorado
and
ness
Jersey City 2, New Jersey
,
;
r
prior month, the board stated, production of durable
"changed little" while minerals output "in¬
and non-durable goods
creased somewhat to a
Wharton
mission, the Wife insurance
Exchange Place,
«
con¬
Average-wholesale prices of botir indus¬
trial commodities and
farjn products, were stable from
ruary to early March.
Although total bank credit
university positions, pension
funds, investment banking, the
Securities
at
N. Y.: HAnover 2-0185
.
February," the Federal Reserve Board
reported, /'was unchanged from the January
rate, and total nonagricultural employment, personal incomes arid retail
sity of Pennsylvania; and guided
by an advisory committee com¬
serving New York and New Jersey
One
'
"Industrial activity in
School of Finance of the Univer¬
announces
Wednes¬
on
The statistical agency said the upturn centered around truck
-Fortunately and constructively,;
Western Securities
week
in the period
are
.
national
last
production
moderately above the corresponding
pronounced gains on a year-to-year
output of electric power, petroleum and
automotive industries.
On the other
hand, production of steel,
lumber and paperboard
was - slightly -below
the level of one
basis
be¬
are
of the
the pen¬
more
plications has driven many insur¬
companies completely out of
utility bond purchases, thus in¬
juring that financing area—besides
statutes,
Commission
of
period
users
Institutional
coming
regulatory
or
course
the free
ent
energy and
natural and manufactured gas, are
interest
its
•
But surely this law, as well as the
balance of the Federal securities
consumers
A
of
SEC
administrative
out of the picture.
On
practical grounds, forcing the call
feature, and thus interfering with
and
policy
keep
.
least,, the
very
fingers
ar¬
bond
Commission's
the
should
Additionally, this one-way
rangement should be viewed
the
of
possibly at
recouping his
or
Practical Market Implications
103.
borrowers,
rates; but in the
utilities, under
money
of
to
period,
middle
principal in inflated dollars.
refinancing practice whereC under at a loan's due date, in lieu
who were able to put it across
of a pay-off from cash, Lender A's
because of the prevalent lack of
claim
is
satisfied
only via re¬
demand
for
capital which
was
borrowing from Lender B (akin
going begging. In the case of bond
to the notorious Mr. Ponri's per¬
issues generally, emphasis on the
sonal chain-borrowing System).
device has since been particularly
intensified, during periods of low
The SEC's Unjustified Attitude
its
the
the end of the term
the
on
of
the contract
in
day
industrial
he
should
of
out
by being paid off
at
reduction
come
J
Total
Boise, Idaho
tive; experience of investors and
borrowers under prevailing bond
redemption features; the process
by which bond redemption fea¬
tures
are
determined; the relation¬
ship between redemption features
and interest rates; their effects
on
the flow
of
capital funds; and
BERK & COMPANY
conclusions about the
equity con¬
siderations involved. No doubt the
results, due later in the
add
Honolulu, T. H.
to
the
165 BROADWAY
On
enlightenment
constructive
NEW YORK 6, N. Y.
year, will
of
by
page
655
in
1957
Edition
and
attitudes
they
more
associated with
are
borrowers, lenders, and
the
SEC.
are
listed in
error
as
of
Security Dealers of North America
being with BURKE
&
COMPANY
I
Volume 185
Number
5622
.
The Commercial and Financial Chronicle
.
.
■(1337)*
to
occur
This Business of
Bigness
Or, the Bigness of Business
States Steel Corporation
tion
economic
want
high,
should expect
they
So
paid
are
tives—about
dividends
of
competition
and
a
can
whether
big business to "compete realistically."
not
wish
to
this
business
vice
J
most
on
the
discuss
is
subject
everyone's mind:
those.. limits,
yond
dreams
his
does
have
bigness of busi- more than four and a quarter mil¬
lion business units of every size
ness. But since
of
bigness
versa—the
'
the
purely
in
Today,
and
...
and
which
type
the
America,
needs
we
designed
are
and
of
wants
economic
meet
aspects of that
these are
small enterprises and their
have
issue
people.
Many
debated
ber
is
exhaustively
our
demands
been
in¬
—though
conclusively—
ever
since
20th
the
Century
like
a
philo¬
sophical ap¬
more
Roger M. Blough
based
proach
upon a propo¬
\
sition
which
matic.
And1
to
seems
the
That
in
the
the
tions of the American
think
about it, we realize of course that
the American
people themselves
their
—by
stop
we
actions
investors and
as
to
consumers,
workers—have
cre¬
by simply withholding their
their investment,1 or
people.
Despite all the frustrating les¬
of history, if "has always been
the nature of man to harbor, great
And down
through
it-has been the
purpose
expectations.
ages,
to fashion for himself the
man
instruments
through
which
those
expectations could be Realized. As
expectations have increased in
size and scope, so too have the
industrial
instruments,
organi¬
zations and agencies which he has
created.
And any arbitrary limi¬
his
tation
that
size
or
tax
be
may
scope
ments—either
or
when
that
sons
the
But
People Want
is
enterprises of
result—simply
great
are
placed
upon
of these instru¬
and
their
people can
regulate—or even destroy—their
handiwork as their changing ex¬
pectations may require.
Thus it is clear, I believe, that
what
an
informed people think
place
—
must
Thenceforth, and
be-
*An
address
to
a
of
Chicago,
March
the informed
big business..
that of
Now
I
times, of
to
produce
ence
peace,
for
is
is,
take
their
,
.
States
*
j
competit
national
.
.,
_
.
ls natural, of course,
years many such
comkinations of metals have
because over the
„
new
been
born
tbe
out
of
u#
s>
steel
native
land
0^ers
jn
chemistry
layoffs.
info?mcd-are
awam.rOf, the fact that these new
_
of
more
know
media,
and
of.
So it
might be profitable to ex¬
briefly just what it is that
an
informed
public expects
of
business—and especially that ex¬
tra something which it is coming
to expect of big business.
amine
dollars
tual
People's
Expectations
quite properly, of course,
thing that an informed
first
people expects of any good-sized
corporation is to be kept informed
its affairs,
When
we
on
opening of
centive to
go
the
into
is
at
training
time
a
tional
value
when wages are
shrinking
him
trial
the
in
.
style,
adds
the
it
baker's
does
not
^be yearSj
j have studied the writ-
^ngs 0£ many of our theorists upon
^is subject; and I have marvelled
^ £jiejr semantic brilliance. As a
the ranks
sj-g^iman
'
moreover,
I have had to
Continued o„
substantially
to their value.
But after
for
making due allowance
improvement In quMity,
this'
shrinking value of the
informed public does
steady improvement in
would call the real price
products—dthat ,is, in the
dollar,
hn
expect
40th
a
I
our
takes
u
of
hours
earn
the
,.
V;
to
of work
that
price of such
^
...
ANNIVERSARY
it
a
☆
4.
Eighty Percent Approve
a
DEPARTMENT
under the management
lieve
in
this
that
the
respect,
record
too, I be¬
will show
We
take
this occasion to
express
our appre¬
friends and clients
who have
informed
given us the opportunity to serve
them over
that
these
beyond doubt that not only do the
expect more of bigness
than
of
business
generally but
of
MR. JOHN B. BUNTING
(Former partner of Thackara, Grant & Company
Philadelphia and New York City)
big business has measured up
to the expectations of the puolic
which created it. This is probably
one
of
the
major' reasons why
people than ever before ex¬
the view that big business
is a good thing for our country.
In fact, 80% now hold this bel'ef,
according to a recent public opin¬
ciation
to
many* years,
sincere
dence
our
and
pledge them our
we
efforts to-continue to merit
placed in us.
the confi¬
..„'.*
■
more
v
«
*
,
press
REED, LEAR & CO.
ion
GRANT BUILDING, PITTSBURGH, PA.
ATlantic
however, an
in¬
people knows that the
constant improvement which has
occurred in the real price of the
1-0880
New
York
Butler
Pittsburgh Stock Exchange
Stock Exchange
Mcadville
McDonnell & To.
(Successor to Byrne
again,
& McDonnell—founded
1905)
Members
formed
MEMBERS
Exchange
survey.
Here
Warren
buy's, could only be
about by improved ef¬
ficiency; and that this efficiency,
in turn, stems chiefly from the
things
it
brought
(Associate)
Johnstown
purchase and use of mammoth
and costly new tools of produc¬
New York
Stock Exchange
120 Broadway,
Uptown:
New York
—
American Stock Exchange
New York 5, N. Y.
254 Park Avenue
—
.
regard as the key to America's inc[ustrial success: competition. Over
utility of indus¬
and
products
quality,
P|°"
promotion; and then to
him unrestricted opportu-
SiSt,
provement which is constantly be¬
made
courses
to
industrial
the special educawhich will quality
nity to advance, through
also realizes that the
convenience
the
with
for
afford
rising rapidly. It
unfailing im¬
better himself,
and
and for the
y
corner,
cents
and
him
vide
the
of the dollar materially, and
And
MUNICIPAL BOND
public, of course,
prices cannot be ex¬
inflation
when
ing
the
informed
An
prOduct.
Stock
and
—
and
pected to decline in terms of ac¬
I
WE WISH TO ANNOUNCE
American
re_
Each of these differs from
search.
the
st£|'
big business is concerned,
they not only want it to sup¬
number
York
o£
to devise a
o£ metais
composition to such an extent that
^ might justly be termed an enshould'concern itself deeply wit
tirely new metal.
Each has its
•the security of its employees _ai}d
unique properties and charactertheir families—that it should in
js^cs. And each serves its special
proper ways
help these woike s purp0se But since all of them are
to. insure Ihemselves sgsinst the <,aiipd steel
few people
even
hazards of serious illness, old age,
beUer
where
what
New
to
that will defy the thermal barrier,
to devote its time, energy a
to
MTh
turn
steel o/t0 one
brandJnew combination
And
,
problem to the
blacksmith
y
Us
development
safeguards against industrial acc dents."*! hey also believe that 1
the event of war.
But this is only the beginning of
their
expectations,
especially
for
not
loca,
They believe that big bus c
better able than small business
money
in
protection
fobs,
when it cornet* to
,
^specially
^sci¬
our
generated by atmospheric friction at that particular speed—they
informed pubexpect a little
plus,lTyou Pl«»e
business,
nr#vi,lp+
is
good jobs
everything, that
devise
can
arid
more—a
.f
<j0
better
re-
i
»
the
be
limited
1 p,roauciSo when our people decide, for
example,. that they want an airborne machine that will travel
many times faster than the speed
°f sound and when they discover
fbat no metal known today will
withstand the terrific heat which
good pay and good bene! ts.
from
buttons to blimps.
it to ipeet every
civilian population
the
of
in
of
of
bit
They expect business to provide
them with whatever they want to
whim
-
'
'
m
Its
mu& be devoted in the
1113111 to the manufacture and sale
here, again, an
lie always seems to
you
realizes that
shop
The
with
thing that people expect
of business in general is to de¬
liver the goods, so to speak.
buy — from
They expect
sources
Anrl so
And so
'
Yes
that when
suppose
hnv them
buy them.
nor
the
n,
shall
these
expect
manp0wer
the
neo-
all
nrnvide
tn
demand,
They
the
the money to support the broader Pr°grams of basic research in
the fields of fundamental and
enough new jobs to
ever-increasing requireof
our
rapidly growing
T1
neither
s
flw Jnthev applied .science.
ponulation
watch it—most¬
because
w^uce
to
want
ments
that
13,
1957.
ly
h
supplying
•
can
'SLSM fS'
size, live
meet the
statements,
news
releases
and
many
other
media.
So big business lives ana
works in a goldfish bowl, where
proxy
higher degree, than anywhere
else
by Mr. Blough before the
Club
this
through
ways,
about
Economic
governmental
and trade associations;
but also through its detailed an¬
agencies
all the world
outlet throu«h the small entercontributed so
our
haps, is that business—and here
again the emphasis is on big business—should play its full part in
records it files with
reports,
nav
is true that much
'n^^J?Jent}ve'ge.niu?
,our Pe°Ple flnds lts natural
$
of
—among
the public—not only
nual
us
?,Vt sh?""ers °.f
big business. It
all of their great expectations—the outstanding one, perj
course,
information to
through the
this
fa£^^,*xp?JulnL
S
any
American
thg
as
^
....
auto¬
limits
the realization of man's ex¬
pectations.
in
want
Informed
similar
provide
of
Ynst
re¬
fnformed prises that have
that only in
" xneet
of
But they go farther.
They ex- metals exist. ,;Yet each represents
ply them-^-through mass produc¬
With'4 am; ever-expanding pect big ^business to respect and the realization of .another of man's
ours
will determine the'ultimate' tion
preserve the dignity of the work-,, expectations^ V
r »*>.
t
r.
r
destiny of your-business and mine. 'quantity -'and aw fever-improving er in his
job—-to increase his sense
And fortunately, we have an in¬
quality of goods and services, but
of satisfaction
and his sense of
Nature of Competition
formed people—informed in more to do so at more favorable prices!
achievement, to give him the inAnd next we come to what I
and
And
upon
these
services,
by legislative edict
subterfuge
matically
business,
must
we
The
business, of
TJ
wherewithal in
wherewithal to
damental
the
all of these instruments;
proposition
big
as
workers
any
al«n
get right down to cases, the fun¬
heights.
stratospheric
What
ated
solely—of the great expecta¬
and
of
few of
A
patronage,
America
the
num¬
the variety of
as
increases.
axio¬
be
this:
*■
very
very
and
new
to
attempt
to
our
big businesses; and
their size is growing as the ex¬
pectations of our people soar to
are
I
began,
should
them
of
growing
And
iust
their
insistent
,'.v '
•
•
...
■
ol
for tee services of
on
field
Research Today
■
to
use
the'
for
the
.
will
ns
next
their
is
in
search,
earn
that
oxnoots
wage
waee
Rut
pie
question is measuring up fully to
would be empty and sterile.
it
And
probably,
expectation
neon°lethe '°tal expectationS rfPm'
their expectations of it.
I
that
profit
a
And
understand
who
business
fah-
felfow
In short, they want
judge for themselves
the
of
these savines
to be able to
or
stability and to
fair
pay. a
company,
goings.
kind
investors
and what it
produces—about all of its comings
owns
financial
this, too', is being done,
the-most important
of
jobs'.
better
list,
.
informed
an
the
execu¬
—
...
,
command the confidence of. these
profits and costs and
and
the
the
to
„
all
two
%
things that Americans expect of
industry are constantly improvjng production and better and
will-
are
public expects
us,
I believe, to be able at all
times to recruit such capital.
It
expects us to maintain the kind
and
salaries
-
capital
.
And
So
tr>'-
paying —
too low or too
are
installation
require huge
the savings of
and
to risk their money in indus-
mg
what
about
of
sums
is
company
purchase
millions of investors who
what effect they will
have upon prices and inflation.
They want to know what kind of
that the informed
agrees
the
whether
patterns.' Lists
progressive in their competition; and
turned
of such facilities will
outstanding im¬
community in
informed
be
to
wages
It also realizes that the con-,-
tion.
is
which it operates. Here people do
American people's special expectations
that big business must live up to; claims big firms have not
been a threat to new and small businesses, and have been
'
he
the
to
portance
growth and big business
performance, U. S. Steel Chairman maintains some of the
biggest corporations "are rapidly getting too small" to do all
that is expected of them. Looking at future risks and expenses
too large for single firm's resources to satisfy needs beyond
the lifetime of executives now planning ahead, Mr. Blough
dismisses "little minds" who fear progress and arch reactionaries who want to force industry back to 19th Century producregarding
much
business that is of
Tracing the evolution of business and the American people's
expectations
much
proprietor
the
how
or
By ROGER M. BLOUGH*
Chairman of the Board, United
how
ask
to
us
is making,
paying the
help in the kitchen. We merely
ask the price of the product, judge
the
quality
for
ourselves,
and
make up our minds accordingly.
But it is quite different in the
case of a big
business, or of any
profit
5
Detroit
—
Chicago
22
>
r
>'
C
The Commercial and Financial Chronicle
/
<1338> J
the first place.
Railro ids: Their Future
sizable
a
f
service.
What
that the type
Member, Interstate Commerce Commission
has
originally handled
and
happened
of traffic which
is;
ing—heretofore—unyielding opposition to any new transpor¬
tation developments, ICC member appeals to rails to take the
lead in providing a functional, efficacious transportation sys¬
tem, involving joints services wherever feasible. Mr. Arpaia
distracting.^ For that reason, I am /
trying to avoid them in this talk,,;,
of
in which 1
worthy
of
of
rash
recent
of
in
articles
Misconception No.
newspapers and leading peri¬
odicals which have taken a rather
dim
view
of
the
prospects
is that auto-
1
mobiles and trucks
.
the
are
ene-
mies of railroads.
,
of
To
conclude
that
vehi¬
motor
American rail-
cles have hurt railroads would
roads makes
.
to
the
selection
this
of
timely.
future
topic
If the
of
the
social and
view vast
be
economic
changes superficially and without
analysis.
The fact is that the
,
boundless
this
industrial
\
country
has
growth
of
large
in
been
.
major agency measure due to the automobile.
of transporta¬ Without
the
automobile
which
tion
in this,
the American people new
gave
country is in freedom to locate, new desires,
doubt, then, by new demands, new employment,
alL
means,
it our total economy would not have
should be se¬ developed to the extent it has.
riously dis¬
With increased production and
cussed.< I can
movement,
has
come
a
higher
'
,
tell you at the
Anthony F. Arpaia
outset
the prevalent
unscientific
pessimism
loose
and
it.
to
I
share neither
r
behind
that
the
nor
to
views.
discuss
conceptions
round
few
a
which
of
the
mis¬
to
seem
sur¬
the entire subject of trans¬
An
understanding„o.f
portation.
the facts may stop the
underrating
of our railroads' potentialities
and,
the over-estimation of their ob¬
stacles.
Each of the points I shall
make could be discussed at
but since I
of
before
am
experts,
I
audience
an
shall
length,
touch
upon
them only briefly. I
approach the
matter out of
structive
con¬
help
of
misunderstanding
underbrush
which
desire to be
a
to
—
seems
foster
to
the
remove
current
misapprehensions. In my opinion,
they are due to dark imaginings
which grow out of the
simple lack
of full information. The
miscon¬
ceptions which I shall discuss,
others
for
living,
which
I
do
not
as
have
time,
and
such
cement,
automobiles
but
into
in
a
society with
an
Since
economic
our
inseparable,
flow
from
tors
of
ated
touch
progress
it.
segment of
mobiles
the
system is
benefits which
Trucks
every
and
auto¬
not
are
merely competi¬
they have cre¬
economy
in which
railroads;
a
new
railroads
operate. Today rails
freight than all forms
of transportation did in 1939 and
now
carry more
about twice
as
selves
in
did
much
1939.
as
they them¬
The
which motor vehicles have
played
a
major
part,
directly
are
always expressed
in
terms of sweeping extremes. For
and
in¬
directly/
example:
Misconception No.
*
*An- address
i.
hird
Michigan
by
Mr.
Arpaia
at
the
Railroad
Management
by
Transportation
Institute of University of
Michigan and
I he
Michigan Railroads Association, with
.»emir»ar,
sponsored
■the
cooperation
American
of
the
Railroads,
Ann
igan.
Association
Arbor,
of
Mich¬
rails.
As
I
have
the
just
pointed
existence
of
out,
motor
vehicles, much of this
new traffic
would not have been
generated in
traffic.
SECURITIES
L A. DARLING CO.
New
J /' lori da\s
TRADING
MM51
is to newly
developed
the
U the, rails are not pra/ticipating; terest
in-greater measure in the- long- 'ture.J
haul
traffic
carried
choice
I" shall
as
point out. later.
jdea
in
"
roads
at
could
will,
reduce
they
stantial
their
would
amount
get
traffic
not
A
.....
-
.
proportion of the
this
discuss
is
too
long
But
now.
traffic
subject
a
recent
a
put it in his
the
own
railroads
than
two
but
doing
producing
one-half
miles
more
as
times
as
all
get
mean
of the
high
The "Manufacture?
grade traffic.
enue*
is
a
natural for semantics/On
side
of
and
on
the
is
calls
minded.
cost,
/-'-"
V
does indicate
What
price
this
is
not
the
only
of' cheap
to
money
rising cost of money,"
under
higher,
of
te
r a
speaks
s
about the "reward for
if
no
reward
reverently
savings," as
too
were,
to
much
warehousing;
fewer
plant interruptions or slow downs
delivery
on
who
wants
interest
rates.
the
-
WOuld be
But
at
On
the
business
with it.
*An
other
savings
a
address
for
one
thing—the ad-
to last only a little while. Perhaps
that is what you expect,
Tight Money to Stick
no
But I
tight
by
Mr
terest
the
March
rates.
rates
ahead
function
are
I
mean
rather
for the long-run
likely to resemble
MORELAND8 GO.
Retail
early postwar period.
My
chief
reason
for
thinking
before
ernments
are
no
longer disposed
to expand the supply of money
is,
whenever
1957.
a
new
economic
STATE AND MUNICIPAL BONDS
CORPORATE BONDS
LOCAL STOCKS
Distribution /
Members
Midwest
Detroit
Stock
Exchange
Stock Exchange
KELLER BROTHERS
1051 Penobscot Building
cX
1
DETROIT 26, MICH.
ZERO COURT
CO.. INC.
STREET; BOSTON 9, MASS.
RHODES-HAVERTY BLDG.
Woodward
2-3855
Branch Office—Bay City,
DE
Mich.
75
Telephone
Richmond. 2-2530
Teie»voe
BS-639
.
!'
more
this is that prices have caught up
with the money sunply. And gov-
ESTABLISHED 18941
Trading Markets
that
period
those of the recent past than those
of the depression, the war or the
on a con-
Heffeman
inclined to think that
is going to stay with
for a while. I don't mean that
there won't be any declines in in¬
hand, if the na¬
to rise, your
stand to expand
high return
am
money
us
were
would
If
perplexity about this
vent of tight money. It would still
be academic, if tight money were
..
all.
tion's
indus-
the nation; and you
would have
you
your
academic question if
an
it yvere
Now where does that leave your
serve
up.' I
sell.
I admit my
industry? You investment bankers
ciaim to
value
keeps going
their stock
cannot
investor
•
because
money
make money on inventory that it
low-cost
And
the
*
It occurred to me, too, that the
industry may like cheap money
because it enables it to carry invchtory eostlessly or even at a
profit.' Not ; every industry can
values to something that is strictly
economic/In the ordinary affairs
marl
inflation
inflation
responsible thought in
26
page
y
r
as
try goes along with this,
of
and
securities
cannot believe, however, that the
do. And you claim to serve busishippers in ^ess/You do this, too. But I think
spite of higher rates. Some of the -.that your big service is to the inobvious advantages of such ship¬
vesting public. If there were no
pers by motor include the ability
savings in this nation, the country
to
maintain
lower
inventories, would still get: along somehow,
which permit less capital invest¬
and so would the business man.
ment
oc¬
Owners of common stock
continuous
other hand, the person who favors
biased in favor of high rates.
classes
eauity
it
industry
that they
in
out for a high return, naturally is
certain
this,
your
cherish the quaint notion
have a vested interest
even
suggest that any cost for
evil in itself. On the
was
pers
to
that
they are hedged
against these
things. Some owners of equities
views with alarm what he
"the
to
shippers. Therefore, when shipchoose to use the service of*
trucks, they
are
influenced by
other factors.
Among them are:
(a) specialized or better service,
and
(b) less total over-all costs
Equities
on
notoriously tolerant of cheap
money and rising prices. At least
capital
is that. is naturally biased in favor of low
attraction
promises J
!
of your service.
about
me
WALNUT 0316
*
'
ATLANTA
i
resentment
are
investment
Thg- advocate
money
if
interest
is
other
the
yield.-
as
coin
one
still
••
to
indiffer-
rience of recent years may have
made the industry unduly equity-
structure, of
is-a two-faced thing, and
.
largest
your,
„
'Now .the .interest
0f men, where, there is no valid
commodity " moral/ issue,
sides
are
usually
mjakes
the taken
according to the play of
contribution .to rail^ rey-r economic interest.
The business
classification
.
your
area
thinking
distributes
Miscellaneous"
and
be
even
y
the
And this does not
so.
truckers
or
curred
truckers, promote the virtue of thrift.
getting $7 billion less for, / This is
only assigning moral
are
that
words: "So today
are
and
ton
many
magazine writer
'
to
me
am
money
course,
to
looking only, at
handled
by regulated
motor
carriers,
the
significant
thing is that present rail rates are
generally lower than motor rates,
let
in-
favor<?
•;
,,
Overemphasis
.
In
Heffernan
•
"
merely
to widen the
Paul
I
development; that
a,
.
perplexity, at what
rates./And that ^is well as fixed-income investments.
whatrkeeps" puzzling met ;*
•/ It could be the inflationary expe?
hauled
by the rails is
going to exempt and private carr
riage. The explanation and cure
to
to
ence
of
,
greatest
//
advocating high
customers.
your
seems.
tment
dliqtrv
that
and
the
banking
sub-
a
-
.
The
the
>
Rightly
ve s
am.not
rates
expressing
struc-
rates
this, newly...
,r .cheap
created competitive traffic.
for
or
in-
over
have
I am certainly
suggesting that you advocate
them, either in behalf of yourself
years that the'
Misconception No. 3 is that if rail -
would
you
/not
by;;-ijiotpr/ or .wrongly,-1it; is ; partly,,'their., own ?haVe '' Jo't't the v
•trucks,
I
interest
industry- to-ward
,
MASSACHUSETTS
"
Phone: Miami, FRanklin 3-7716
Now
I
SECURITIES
COMPANY
investors/
many more investors.
u r e.
Perhaps
where
areas
tail service does not exist at' all-
"
IMVtSTMlMT StCUtlTllS
201 S.E. 1st Ave.
Miami, Fla.
the
t
r u c
ft
Sections for Homes
ALFRED D. LAURENCE
&
t
s
and
interest
Development in
DEPARTMENT-
TELETYPE
savers
business
the
transportation performed by mo- should
say the
carriers for longer distances;
attitude of the
Continued
And Adjnst-A-Bilt Wall
Triangle
Europe's colonial systems.
to write about this business, save more, they would do/ore
^ ^i£,atl°nShlp betWeen ^iness with you. And if noncould be induced to become
Philadelphia,
Unusual
to the
tor
Movable Partitions for Offices,
Schools and Hospitals *
Golden
of
Shippers are hard-headed busi¬
nessmen, who measure not only
the immediate cost of transporta-
REPORT ON
Invest in
Much
>
^Zr/Lzle/m/everZiice/
that
performing;this type of
intercity
*
-
of investment bankers' service
area
selling of bonds
ern
that the
schedules; less handling and fewer
loss and damage claims.
WRITE FOR LATE
FLORIDA
Industrials
relatively
due to the failure to meet
TRADING MARKETS
Bank, Insurance Companies,
the
involved
.
2 is that all of
the motor freight and
passenger
business
is
competitive
with
without
is
present
volume of freight which rails en¬
joy is directly attributable to the
expansion
of
our
economy
in
of--*
because
and
distances
truck
But
advanced economy.
volume/i
94.58%
.1
through intensi¬
public.. Predicts "tight money is
going to stay with us for a while," in view of
prices having
caught up with the money supply, and of the demand for
capi¬
tal. While
doubting thef possibility of a severe depression, Mr.
Heffernan, sees some "squall clouds," as in short-circuiting
of international
capital flow resulting from break-up of West¬
fied
anywhere near that
It does, however, in-
is
industry
short
demand
as
highways, bridges, power plants,
factories, schools, churches, libra¬
ries, homes, as well as all the
things and services that people
,p.eed.3p$
and
there
rubber, aluminum, copper,
building materials and every other
product which goes not only into
trucks
trips
the
by
TOrnpetitior/lf'fcs
™d
dispersal
including
commodities
broaden
-
SS'Sl
a
steel,
getting into the subject
the future of railroads, I should
lik&
with
And
increased
an
goods,
more
basic
Before
of
developed
for
that reason, I am
the opportunity to
have
of
living.
standard of
higher
reasoning
For
express my
standard
handled
percentage.
shippers and competing markets.
that
mean
traffic
the
level, with disregard for rate relationships between competitive
The
However, it is note-
by trucks were for distances „;
than 100 miles. Now this
not
■
ilCOltOItllC OUtlOOK
Banking expert, pointing out that the interest structure has
conflicting phases, namely, interest cost and investment
yield,, maintains rising yields on fixed-income securities
trying to establish
am
*
*
two
less
does
rates and raising others without lowering the
our
be
can
*
■
Financial Writer, The New York "Times"
Roads, in 1955, 94.58% of the. trips: /
made
euphemism for recreating disastrous pre-1887 conditions
some
statistics;
,1
.
By PAUL HEFFERNAN*
,
and
that, according to esti- /,
by the Bureau of Public <i
mates
and, in singling out the railroad Cabinet Committee's
reducing
of
use
perspective.
proposed amendment, terms the publicized rate reduction plan
an
The
.
praises recent advances of past several years,
denies regulation handicapped the industry or lessened compe¬
as
location
increased in volume.
enumerates and
tition
.
.
and
area
■
h
311(1
ex¬
tended
in
y
,
«
}|p|CtOI6
by horse team
carriage has been greatly
^
.
.
was
Graphically refuting six misconceptions entertained by the
railroad industry, picturing bright future for rails, and attack¬
glad
-
mInvestment Banking, the Interest
srof ^foS £
By ANTHONY ARPAIA*
HP?
Secondly,
/, Thursday, March 21,* 1957
.
1, GEORGIA
LONG DISTANCE 421
prob-
;
Volume 185
lem
Number 5€22
comes
The Commercial and Financial Chronicle
.
..
outside of the. region ot colonial \body;-.vXbey .want political ipdestruggle, tensions aire risings The pehdence.' .They want to develop
comiades-at-arais honeymoon of their: own; cultures their own way.
World War 'II 'is- over? ^eneioi >They,-want ;a;-better
living - for
The, tendency is
up.
(1339)
,
rather in the other direction—to
keep
a prtfdent rein on credit ext
pansion and .to try, to spur savings
among .the people. 7 t
-1A/
Eisenhower
and
General Zhukov
\ Then; there is the demand for
capital. By and large, I think this
(Special to The Financial Chronicle)
CHICAGO,
Mathews
want foreign mantam,
;
. ■
<rr..•agerisdtvskil^ yes;-but they waht
.vanced nation's but the drop will:
If these tensions are to be re-;7o^dev etop>their own managerial
he offset by the demand from the solved by januiuer series- bf -maSs shillv too—something not easy in
py. nnother series yrtmass.
lywyoymciuinf;
ca»jr *"
have-not nations.
!
1
sulkings and withdrawals-^—if it is the- colonial days. - They have the
to
be
Britain
for
the
British, labor force;, they yearn to in7
111.
has
suivea
sSSSlSi
.£}£
.
France
*
for
French,::; and .crease "its productivity.
the
These
■
A,
.
,
nes<!
phiraffo
tn
inw?tmpnt'j.
for
>
Kneeland
.
has recently been with
&
na-
vear<
manv
®
*
-
Impact of Tight Money
T.
associated
-
h
J
*
t
(Special to The Financial Chronicle)'
Henry
—
become
f
t#'
With Walsfon & Co.
evahm
lost popularity ,in:
continue.- It may fall off now
and then here and in other ad-
Hubert S. Conover h
Reynolds & Co.
They
are. no longer exchanging salutes,
want - foreign capital, but they
Britain., has lost -face Over* here. 'want?to<vto generate capital from
Will
n,
H. T. Mathews Joins
their countless-populations.
I
CHICAGO,
Coriover
With
111.
Walston
South
Hubert
—
has> become
La
&
Salle
Co.,
Street.
S*
affiliatecl
.
Inc.,'»231
Mr.
Con-
°Ytp o^v^ v|ce' President
of F. S. Yantis & Co. Incorporated*
Co., in the investment depart¬
Form Investment Co:
ment.
WASHINGTON, D. C.^-Profe*«
sional
changes made. The big change, as
I see it, is- the comeback for fixed
come
•income investment, If substantial
estment..
returns
are
io.cQntihUe* to; be avail"
able fof
to
*
full 'stop,
a
this:
is
is
I see
.
,
has
(Special to The Financial Chronicle)
-
Employees Investment Co,
been
formed
with
1129 Vermont Avenue,
SAN FRANCISCO, Calif.—Bel-
to engage
in
a
offices
at
NorthweLfc
-looking
den
Gardner, Jr., is
Baxter
&
Street.
a^tbia industry. I hope there-will
to- th<*
S.
He. was
are
securities business*
Joseph
-Salilr
O.
Company, "605 Market formerly with Coombs & Co.,* an J
previously with James L.. Lesko, previously witht
Hannaford & Talbot.
United States more than to any,: be a; response,
with partners
now
7
,.
Daniels & Co.
.
,
—p———i—
industry pre-
your
challenge goes
,,'
sigpiCkant part of it is directed
These colonial nations- coming
as
this
-
"
-
t0
fSS*
Baxter Adds
show me!"
then- I'm?talk of love
for the
7 q| course
full;blow,' a .depressiori that ^ill:7:; 7
,,
not only curl vour hair/ but :win^.r;^^on--t16 mvestment ,DanK\Jng,. industry; but I think that a
take your scalp:
are
it,
-
we're fated, again
.
.
"
high-grade bonds, the gQ-
&££
-
afraid
pared to sell bonds to individuals
widely
as
It is
say
as stocks?.{I doubt it;
probably no exaggeration tog
that if an individual -wanteds
New Issue'
Jo buy a fixed-incom.e :investment: 5
say in the Philadelphia Electric 7
Go.' it would be easier for him torday to do it indirectly by buying
share of stock in
a
than
-
*■:y
mutual fund 5
a
by trying to buy the bond V
-direct.
•i The
from,
v
,.7 y,..-?. -.77'*
>'/•"•,
bond v salesman • vanished
your
business £ during the 7":
.
.cheap ,money* pjetiiod
of\ theV'3ps,;;
when the bond market was lnsti-
*
tutionalized. X think
^
ypii will
*7
have
j. tbjfih^hihr ^(pjgkmion ; a :
VWfy ■ for hirWtp rp ake cpntact with - '
ihe public/; What' yoW heed/is' a 7; P
HarrvA Stuart to; find a hew; way
:
of marketing bonds/ just as
he did
gin the -cheap-money '30s. J
77:•'/; ; « p
> ■ * '
"''"'".I1' "
'I
/
7'?
-
■,«**.7
'' ' '
r'*-.
3.1G%f;Gapital Outlay Bonds
,Some; Storm Clouds Abead M
;7;;in-c
say .a word about thb next depress
siori,
:
Dated -April 1 ,'195 7
V-
/ the
-Anybody. who Uved through
Iast
;:one;
carries with
him >
5
i;
"Pririripoiand
a
KCf
,4
■
L.am' no. exception. I would *'
n6t:be- so Tash as to nredict that *there^^ will;'
.
.4'
^c^lurein 'ivruii^lcf of
Jl,0(K). eEcha«iBtabJe ft>r. fuliy
ami
reo^wry-Jn Bo»ton',.Mawiochu*dt8 o? pt-BnnVcrre
ref t
•'iTrust-C^oiiipapy irt New-YofK *
U..
morbid; fipp^eh^^
C 1
f.T.i 1
J-
i
•
Couponw,d^o«i«*Ak>A
In Cliicfcgo,
Hit
O tin/• d
1
4
•.
j
;
' **!"
'
'
fcut not intercliangeable.
-
.
sion like .the '30s.
y
:
History has •
a
.
-
Taxes under present Jaws
•
x
=
return performance is, often,upon v
,
'Interest focem fctfro-iqTeueva I and Massachusetts Income
.■-7";;:
Way of' repeating itself and the N
v v >.
y
V
Legal Iniestirtchtj in'dur opinion, for Savings Banks and Trust Futids in New York,
**>} •
v • ":
■'
diid citudiri other states and for Savings Banks in Connecticut
you before .you know it.
But I
don't see a 1930 depression ahead.
There are clouds, in the skv but
Massachusetts
.-
they look more like squall clouds.
They will bring .distress and the
n6ed for readjustments, but I think
that our economy is flexible
Tbtse* bonds, to be iesued for Capital-Outlay purposes,
"
7
-'
~
in the opinion of the Attorney
General of, the Commonwealth will j
of the Commonwealth of Massachusetts for the payment of which its
faith,andrcredit will be pledged, and for such purpose the Commonwealth will have
^
^power to levy unlimited taxes on all the taxable property therein.
constitute direcb general obligations
^
•
■
~
full
enough and our people resource¬
ful enough to survive such readjustrheots without great harm.
V There is one exception to this.
•
•'
•'
^
'
^
/.MOUNTS, MATURITIES AND PRICES
I see one cloud that is uncomfort¬
-
ably reminiscent of the earlv '30s.
In those days, you will recall, the
international flow of money and
credit was short-circuited .badly
by the retirement of Great Britain
as
the banker of the
five
(Accrued interest to be added)
Arwnpt ;
threw away
was< a
1,158,000
1959
Amount
Dae
1968
2.90%
$958,000
1973
3.00%
19^4
2.75
958,000
1969
2.90
958,000
1974
2.40
2.80
958,000
1970
2.95
958,000
-1975
,
3.05
19 66
2.85
958,000
1971
2.95
958,000
1976
3.05
7 958,000
1967
2.85
958,000
1972
3.00
958,000
1077
3.05
"vf
*
;T(
2 50
1,158,000
1961
1,158,000
-
958,000
19627 2.60 ?:•-•
-
"
Doe
To Yield
|
I
3.00
1965
958,000
2.10 77
1960
-
,
The Re¬
publicans were concerned mainly '
; with" the adequacy Of a protective
tariff,* And thef Democratic;Ad--"
ministration of franklin Roosevelt;
-
Wh*r>,
reacted, to the crisis by going, isoThere died within
a
as
subject to approval by*
the Commonwealth of Massachusetts,
and If issued and received by us and
'
the Attorney General of
.
lationist.
To Yifid
$958,000
2.00%
1,158;000
conti-
1958
teenrascer in the. field
of international affairs.
■Amount
2.70%
> mount
"V*
Due
^
fcaught it The United States at the
time
To Yield
1963
-'7/958,000
'
$1,158,000
nents and the seven seas/
England
the torch and nobody
'
$958,000
Tr> Yield
Phc
A-
--
^
^
few
,
months
one
of the New' Deal's
prominent figures—Judge:Jerome
•'
'
Frank. He ds best remembered by
Baiifccrs Tritst
'-A'"* !
-
/*;■
;
•
manyhere,Iamsure, for his-book
if 1*7.'
p:jA
p rn
Ainerica First." ',J »*'7 " xi3mW3D nip'Cy & 10,,
;
V In "those • days, every nation,
'■»
.
....
.
.
nation
other
with
was
,
the
-
exporting unemploy¬
^Today's Rarallei;
?/"Tke^ First National City Bank of New York
'•
1
AX
-
' *•
The first Boston Corporation
Harris Trus( & Savings Bank
Smkli, BarBcy 4 Co.
fall of .Britain, the world, banker,
Js7 the breakup of the colonial
systems that had economic ties
With Western Europe Already^the
of
:-7 Ahi. Bfown & Sons \v-- Tucker, Anthony & R. L. Day
Bakef; Watts & Co.
Chas. E.Weigold&rCo.
.,
-
jThe parallel today to the down¬
e
,
The,First National
The First National Bank
Stone t Webster Securities Corporation
-■<
-
Estabrook& Co.
ment- and each was drying io find
salvation alone. It didn't work.
>
\
'
~
;
Kidder, Peal
-
Incorporated
,
Paine, Wekber, Jackson & Cnrtis
Portland, Ore*
Wertbeim & Co.
Branch Banking & Trust
.
Wachovia Bank and Trust Company
V/inaton-Salem
ThirdNationalBankiirNasbviR^
First Southwest Company
Geo. P. Fogg & Co.
Fahey, Clark &. Co.
■:
Blewer, Glynn & Co.
SJ:
A
eign capital is in flight. Other
foreign capital is being exxwro-.
vpriated. Tempers, arer rising? Even
' Z
-''
•
'
,
-■
>
«•
....
-' .'UP?*'
{
.
short-circuits ate threatened: For- 7
March 20^1957.
Company*
.
-
■tk-
.
FiSi'Hoseley&Co;
.......
charging,
Incorporated
:
was
Cold-shbuIdeHpg/eveVyi other' one.
Each
h
.
t
*'Sa've
•
^/w
"''
Statements
herein, while
not guaranteed, are based upon
information which
we
believe to be reliable.
8
The Commercial and Financial Chronicle
(1340)
Cook
Coffee
Company—Analysis—A. G. Becker & Co., Incor¬
porated, 60 Broadway, New York 4, N. Y.
L. A. Darling
Dealer-Broker Investment
Diamond Match
Recommendations & Literature
It it
to
send interested parties
Corp.—Report—General Investing
Wall Street, New York 5, N. Y. Also available is
andum
the following literature:
Credit
Northwest
Automotive
Review—Brochure—McDonnell & Co.,
Also
—Gairdner and
120 Broad¬
review
|
..
of
1956
Stock
the
for
1957—
most
shareowners—in
of
5, N. Y.
120
listed
20
issue
companies
of Exchange
of
Wall
Service
Electric
&
Texas
Fritz
on
W.
Glitsch
Insurance
Company
—
Review
—
Wm.
H.
Mining Co.
Circular
—
Officers—booket
vestment
for
—
Eli
to
Bankers
bankers—National
and
Association
of
Co., Inc.,
Yamaichi Securities
—
National
Bureau,
r
over
Inc:,
a
46
*
Machine
&
Nut
Life
York 5, N. Y.
and
Christiana
a
Window
Savers
Inc.
du
Annual
—
Hersey
of
Growth
Securities Co.
—
Texas
639
at
Corp.—Memorandum—Arthur
Tubes
Krensky
—
L.
74
Y.
Broeck
the Maketewah Country
r
i.
Club.;
(New York City)
J
Club, of New
annual field day at West¬
York
Bond
Country Club and Beach
Club, Rye, N. Y.
/
June
St.
1957
Ellis & Anderson,
(Minneapolis-
Paul)
Bond
:
K
t
City
Club
annual
and
at
all
an
the
day sports
White
Bear
program
Yacht
Club,
White Bear Lake, Minn. June
Sept. 25-27, 1957
Cal.)
;
firm
Company—Analysis—John J, Keenan &
Spring Street, Los Angeles 14, Calif.
on
,,->-•
Investment Bankers Association
•
Fall
Meeting at Santa Barbara
Co., Inc.,
Oct. 7-8,1957 (San Francisco, Cal.)
Association
of
Stock
Exchange
Firms Board of Governors meet¬
ing at Mark Hopkins Hotel.
Co., 40 Wall
Corporation
—
E.
Constant
Data
*
i
North Akard.
is
—
McManus
Also in the
and Burndy
&
same
Walker, 39
circular
are
Corporation.
op.,
—
name
of
Co.,* 2631
Roger
G.
Atlantic
been changed
10-11,
1957
(Los
Angeles,
Calif.)
Association
of
Stock
Exchange
The
Johnson
ing at Beverly Hills Hotel.
Nov. 3-6,
1957
(Hot Springs, Va.)
National Security Traders Asso¬
ciation Annual
Convention at
(special to the financial chronicle)
.
principal.
a
Oct.
Firms Board of Governors meet¬
Ohio Water Service
offices at 2111
Geisler.
McAndrew Staff
the Homestead.
Dec.
1-6, 1957
(Hollywood Beach,
Fla.)
Investment Bankers Association
Annual
Convention
at
Holly¬
wood Beach Hotel.
Oct.
29-Nov.
3,
1958
(Colorado
Springs, Colo.)
SAN FRANCISCO, Calif.—Barbara
Brown has joined the staff
of McAndrew & Co., Incorporated,
National Security Traders Asso¬
ciation
Annual
Convention
at
Buss Building.
the
Broadmoor.
Boulevard,
to Johnson and
...
DEPENDABLE MARKETS
Sold
Are
Your
Records
Incomplete?
"FOR SALE"
Beautifully Bound Set of
1938-1950
Available in New York City—Write or
& CO.
Security Dealers Association
York 6,
20.^
(Santa Barbara,'
Biltmore.
South
Phone REctor
N. Y.
2-9570
Edwrin L. Beck
c/o Chronicle, 25 Park PI. N. Y. 7
DEMPSEHEGELER &CO.
(
-
outing and picnic with cocktail
party at Hotel Nicollet June 19
&
Williams, Inc.—Report—May & Gannon, Incorporated,
Street, "Boston 10, Mass/
Toy
19-20,
Twin
are
BOSTON, Mass. — Philip R.
is now with Palmer, Pollacc}l1 & Co., Inc., 84 State Street.
has
Trinity Place, New
at
June 14, 1957
"CHRONICLES" from
Members: N.
(Cincinnati,
chester
Vanden
Corp.—Memorandum—Green,
POMPANO BEACH, Fla.
TROSTER, SINGER
1957
Municipal
Bond
Group
annual spring
Sheraton Gibson and
Dealers
&
With Palmer, Pollacchi
&
Bought
13-14,
Ohio)
—
.
Dictaphone Corp.
Alberta, Canada.
June
Municipal
M.
Washington Underwriters
Formed in Dallas, Texas
at
Corp.
1
Convention at Jasper
Park Lodge,
Witt Conklin Organiza¬
Ltd.—Data—Alfred
IMOW Johnson & Ueisler
..
Invest¬
11-14, 1957
party
Federal
data
Bruce
Trading Favorites
of
Investment Dealers' Association
—
Broadway, New York 5, N. Y.
with
Banks, Brokers, Dealers—
Convention
Cincinnati
DALLAS, Tex. — Washington
Underwriters, Inc. has been formed
Polaroid
June
Analysis — Newburger, Loeb & Co., 15
Street, New York 5, N. Y.
Worthington
—
available is a discussion of Life
Insurance earnings results.
Consolidated Freightways,
Inc.—Analysis—J,- M. Dain & Com¬
pany, Inc. 110 South Sixth
Street, Minneapolis 2, Minn.
Green¬
Analysts Societies.
of Canada
Street, New York 5, N. Y.
Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
Commonwealth Life Insurance Company —
Analysis — Kidder
Pea body & Co., 17 Wall
Street, New York 5, N. Y
Also'
Current
National
ment
Hayden, Stone & Co., 25
West Virginia Turnpike—Review—John Nuveen &
discount.
a
bulletin
the
at
May 19-23, 1957 (Cleveland, Ohio)
review
Century Fox Film Corp.—Memorandum—Herzfeld
Stern, 30 Broad Street, New York 4, N. Y.
&
discussion of Convertible
a
Stocks
New
—
meeting
Twentieth
Analysis in current issue of
& Co., 1 Wall
Street, New
are
a
Petroleum
Broadway, New York 6, N. Y.
140
Pont
Also available
list
report
16, N. Y.
—
Amerada
Co., 141 West Jackson Boulevard, Chicago 4, 111.
61
—
,
Hotel.
&
Scott &
Company, C. J. Johnson, Sec¬
Offices, AMF Building, Room 638 I, 261
"Gleanings"—Francis I.
Memorandum
Frontenac
Broad
•
Foundry Company
Madison Avenue, New York
on
Co., 55 Liberty Street, New York 5, N. Y. Also available
data on Algoma Central & Hudson Bay
Railway Co.
13-year period —
Front Street, New
American Machine &
Foundry
retary, Executive
Also available is
reports
Co.—Memorandum—Goodbody & Co., 115 Broad¬
Perkins Elmer
*
and
Company, 44 Wall Street, New York 5, N. Y.
Page
Ralph E. Samuel & Co., 115
—
Spring
brier
Miehle-Gross-Dexter, Inc.—Report—Loewi & Co. Incorporated,
| 225 East Mason Street, Milwaukee 2, Wis.
Also available
are analyses of EI Paso Electric
Company and Consolidated
Water Power Company.
■
Discussion
(White Sulphur
Springs, Va.)
Steel—Report—Bache & Co., 36 Wall Street,
5, N. Y.
Paramount Pictures
—
Exchange
ing at Jefferson Hotel.
100 Broadway, New York 5, N. Y. Also available are
bulletins on Purex Corporation and Eastern Industries, Inc.
Broadway, New York 6, N. Y.
American
&
Stock
tion,
4, N. Y.
Uranium Industry
100 Broadway,
Company—Report—Harris, Upham & Co.,
—
•
^
Investment Bankers Association
Micromatic Hone Corp.—Bulletin—De
Bureau Averages, both as to
performance
Quotation
Schley,
New York 6, N. Y.
Miami
Analysis of background, present prospects and
—
J. R. Williston & Co.,
market
Co.
of
May 8-11, 1957
market
>
Firms Board of Governors meet¬
Oil Company Limited
Analysis — Burns
Company Limited, 44 King Street, West, Toronto 1,
Ont., Canada.
1957—Bulletin—Harris, Upham & Co., 120
the National Quotation
Association
Street, New York 4, N. Y.
Bros.
Over-the-Counter Index—Folder showing an up-to-date- com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
and
Stinnes
McColl
In¬
investment appraisal—$1 per copy
115 Broadway, New York 6, N. Y.
■sed in
Mining
current
Lilly
Trust
Broadway, New York 5, N. Y.
—
the
way,
Co., Ltd., Ill Broadway, New York 7, N. Y.
Oil in Cuba
Security Traders Association of
the Waldorf Astoria.
Maryland Shipbuilding & Drydock Co.—Memorandum—Shields
aid
Current information
Market Outlook for
&
Hilton
New York 21st annual dinner at
Stet¬
Corporation—Analysis—Boenning & Co., 1529 Walnut
New York
Companies, 61 Broadway, New York 6, N. Y.
Japanese Stocks
Steel—Study—Moore
annual
Statler
April 26, 1957 (New York City)
Tegt-
Wash.
1,
Investment
of
the
Hotel.
Jones & Laughlin
Gas—Thomson & McKinnon,
Shares—An
City
Broad
on
&
Company
&
at
May 6-7, 1957 (Richmond, Va.)
Cleek-Tindell
—
&
an¬
(Dallas, Tex.)
Association
meeting
111.
Cohu
Invest¬
Association
Group
Bankers
/
;
Broadway, New York 5, N. Y.
Hugo
Street, New York 5, N. Y.
Investment
April 21-23, 1957
Corp., Seaboard Oil Co., and Electric Utility Stocks.
Gas & Electric, Commonwealth Edison, Pacific Gas & Eectric,
Bonds
data
are
Building, Spokane
Ilomestake
Utilities—Analysis with special reference to American
Public
Box
Ilevi-Duty Eleetric Company—Circular—Milwaukee Company,
207 East Michigan Street, Milwaukee 2, Wis.
Also
handling—Lamborn &
Company, Inc., 99 Wall Street, New York 5, N. Y.
Beech
Kraus,
Group
nual conference at Drake Hotel.
Machinery
bulletin
Field
(Chicago, 111.)
States
Bankers
ment
Street, Philadelphia 2, Pa.
suggestions—Peter P.
current
Dry Sugar in Bulk—Booklet of facts
York
Hill
Grinnell
Company Limited, 320 Bay Street, Toronto,
Ownership—Analysis
Pacific
—
New York 5, N. Y.
forecast
Magazine—$1 for year's subscription—The Exchange Maga¬
zine, Department 7, 11 Wall Street, New York 5, N. Y.
yield
&
Cable
Paul'sen
-
•
and
McDermott & Co., 44 Wall Street, New York
available is an analysis of the Crane Co.
11
Bulge
Corp.—Memorandum—Winslow,
26 Broadway, New York 4, N. Y.
Globe
Ont., Canada.
and
Analysis
—
& Co., 39 South La Salle Street, Chicago 3,
General
Granite
Common Stocks for Income—List of ten
Electric
and
same
Life
meyer
son,
<
with
the
Sons, Inc.
able is current Foreign Letter.
Common
Life Insurance Co.
—
Canada—Economic
March 27-28, 1957
Company, Terminal Box 3686, Seattle 24, Wash.
Steel
in
Franklin
View
Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
Burnham
memor¬
Co.—Data—Eppler, Gu.erin &
Turner, Inc., Fidelity Union Life Building, Dallas 1, Texas.
New York 5, N. Y.
way,
Worth
a
Central
Rubber Co.—Analysis—Ball,
361, Mansfield, Ohio.
Ft.
Investment
In
Corp., 80
Mines.
Faultless
on expanded atomic power
including Euratom, naval program for six
atomic aircraft carriers, official AEC estimates of uranium
demand and supply* South African uranium ore1 reserves,
and items on Newport News Shipbuilding & Dry Dock Co.
and Foundation Company of Canada—Atomic Development
Mutual Fund, Inc., Dept. C, 1033 — 30th
Street, N. W.,
Washington 7, D. C.
abroad
program
Shore
Lake
on
Farmers New World
Atomic Letter (No. 25)—Comments
EVENTS
Company—Annual report—Secretary, Diamond
Company, 122 East 42nd Street, New York 17, N. Y.
Equitable
will be pleased
firms mentioned
understood that the
COMING
& Co., Penobscot Build¬
Co.—Report—Moreland
ing, Detroit 26, Mich.
Match
Thursday, March 21, 1957
.
Volume
Number 5622
185
.
The Commercial and Financial Chronicle
.
.
ment
not curb its spending.
spending makes for highly
ways in this respect, we shall
progressive taxes which under¬
dearly in coming years for" mine profits and cripple business
type of educational job that needs
Impact of Population
Increase
our
Various
on
be
to
pay
done.
If
do
we
not
mend
Economic Areas
incentive. Neither will
ple
Will More People Mean
More
By ROGER W. BABSON
lagging labor force growth
a
a
com-
science vocational
on
Mr.
Babson
and
in
and
numbers
Much
perity.
Hence,
phasis
on
mean
people will not necessarily
more
sales
if
we
to
the
our
need
for
re¬
well solve
years
may
farm
problem
In
em¬
of
distant
far
eager
to increase
our
we
shall
soil
other
am
and
crop
optimistic about the
T. J.
farmers.
Pendergrast
ATLANTA, Ga.—Courts & Co.,
11
Marietta St., Northwest, mem¬
of
the
change,
on
bers
overproduction.
when
and
Courts & Co. to Admit
current
our
use
builders. I
fact, I forecast that the time is
not
more
children.
our
tilizer
*
pros¬
repeated
my
the
in
potential
assure
religious training of
govern¬
bigness
telligent
New York Stock Ex¬
April
1
wilt
admit
Thomas J. Pendergrast to partner¬
be
ship.
farm output.
prosperity
bigness in population and
predicts
for
future
optimistic
This
farmers.
In
1950,
U,
our
was
about
are
170,000,000
is neither
announcement
The
population
S.
150,000,000. Today
we
and
strong
NEW
the
offer to sell
solicitation of offers to buy any of these securities.
nor a
offering is made only by the applicable Prospectus,
7'"
'
ISSUES
an
'7
v.-;"
March 19, 1957
prospect is that our rapid expan¬
sion
in
numbers
will continue.
The
20,000,000
since
added
equivalent
England states! '■
New
six
are
this
in
that
told
am
country
is
baby
a
every
:
■
Ahead
Tremendous Growth
I
:
El Paso Natural Gas Company
present population oi!
to twice the
the
Americans
more
1950
born
150,000 Shares
eight sec¬
onds, and that
if
present
.rates
of
in-
5.68% Cumulative Preferred Stock, Series of 1957
"
;
*
coiitin->
crease
„''ue,
"'well
'have'
a
:
..
population
by
demand
Roger W. Babson
each
•
b
and
American
can
iii population far
predictions. I well
As
peak
a
1980
ofCommon Stock for
- -
one
1957
•
April 30,1967, at the rate of
share of $5 Convertible Second Preferred Stock.
set
forth in the
by the Company to holders of its Common Stock,
expire at 3:30 P.M., Eastern Standard Time, April 2, 1957, as more fully
Prospectus. During and after the subscription period, shares of $5
Convertible
be offered by the underwriters as set forth in the Prospectus.
Second Preferred Stock may
decline.
recall
I
it, they thought that
peak might be around 154,000,000,
a
mark
we
actually passed
Subscription Price to Warrant Holders
—
about five years ago!
.
....
.
What
About
The
Labor
Our
current
the result of
boom
in
people.; is
"high
\
ulation
a
of
area
gain
our
is
,
the
Underwriters,
including the undersigned,
very
young
zens.
The
are
a
who
form
case,
concerned
decreasing seg¬
Stone 8C Webster Securities
population. That
we should be more
about
relations
ment
in
"
.
*
■*
.
'
''i
y
''
-' '
«
* > iL f'¥
'
7'
* ' r •
only from such of the several ':
lawfully offer the securities in such state.
as
may
labor
manage-.
future
I forecast that labor-force
;
the
ment of the total
being the
\
White, Weld & Co.
and among our senior citi¬
labor force
i
greatest pop¬
among
adults
-
.
Copies of the applicable Prospectus may be obtained in any state
steadily declining
mortality. Modern medicine con¬
quers many of the diseases which
in the past have cut life short.Thus the
$100 per Share
.
Force? ;
unexpectedly
an
birth rate and
may
#'
"
k
.
Subscription Warrants evidencing rights to subscribe for shares of $5 Convert¬
which Warrants
probably
—
then
and
—
yLtW.,4"
ible Second Preferred Stock have been issued
telling us
in
the
depression
days of the
thirties that the U. S. population
hit
•
I
experts
around
'
Convertible into Common Stock to and including
three shares
Transferable
remember
would
.
at¬
exceeds earlier
the
.
manu¬
merchants
growth
r
(No Par Value)
tempt to satisfy. !
This
,
immi¬
each
that*
facturers
77
7
S5 Convertible Second Preferred Stock, Series of
previously been consid¬
normal, adds to the poten ial
demand
Share
300,000 Shares
-
are
than had
ered
per
■
grant, and
living a longer lite
person
Price $ 100
,
Plus accrued dividends from March 1, 1957
,
Each "
i r t h,
good..
new
v
our
products
,
,
pros¬
for
pects
,'
that
means
■
-
This
g a i n
1 975.
huge
;
..
of
220,000,000
.
(Par Value 5100 per Share)
could
we
Corporation
continue to lag the total poprise to an increasing de¬
during the next 20 years.
widening
gap
will create
problems for management except
The First Boston Corporation
Lehman Brothers
Blyth&Co.,Inc.
Glore, Forgan & Co.
Eastman Dillon, Union Securities 8C Co.
A. G. Becker 8i Co.
years.
Incorporated
growth
ulation
;
,
Goldman, Sachs & Co.
Harriman Ripley 8C Co.
Lazard Freres & Co.
Kidder, Peabody 8C Co.
Incorporated
gree
This
as
a
the
automatic factory
Paine, Webber, Jackson 8i Curtis
Lynch, Pierce, Fenner 8C Beane
Smith, Barney & Co.
Clark, Dodge 8C Co.
Dominick & Dominick
becomes
in the situation.
factpr
Merrill
This is
especially true if too small a pro¬
portion of the labor force possess
the
scientific
and
engineering
Central
Dean Witter 8C Co.
Republic Company
(Incorporated)
Dominion Securities
Corporation
Drexel &. Co.
Equitable Securities Corporation
abreast
technological developments.
Estabrook & Co.
skills required to keep us
of
Instead
of paying too
much at¬
expensive frills of
education
(as we do now), we
need
to
encourage
high school
tention to
Hornblower & Weeks
W. E. Hutton 8C Co.
Lee Higginson Corporation
the
girls to become scien¬
chemists, and engineers, as
Carl M. Loeb, Rhoades 3C Co.
Laurence M. Marks & Co.
Salomon Bros. 8C Hutzler
and
boys
tists,
well
Hemphill, Noyes 8C Co.
as
economists, business man¬
merchants, and teachers.
We ought to find out whether our
schools
are
actually doing the
agers,
Shields 8C
Company
Shuman, Agnew 8C Co.
Spencer Trask 8C Co.
9
up our prop yields to
highs through an in¬
of irrigation and fer¬
future of American
rapid
ing and since World War II how
to step up our crop yields to lev¬
els not dreamed of a generation
ago'. We now have food and feed
surpluses.
Irrigation and phos¬
phate can produce miracles.
Surely more people in future
automa¬
power,
Mere
ditions during the years ahead.
automatic
between
power.
techniques.
ing
will not
More
unless
nation
step
record
new
those fears. We have learned dur¬
peo¬
tion, speedier transport, and other
new
manufacturing and market¬
sources
objectives.
no
sees
correlation
buying
a
We will
People?
population growth
scares
some
folks. They fear we
cannot produce enough food for
all these people. I do not share
Our
have in mind the further devel¬
will depend on the economic con¬
educational emphasis
more
actual
sales
adjust as
more
more
to
opment of atomic
However, we should not
quick to assume that this
too
into
causing problems in labor-man¬
ing
I
increase will always be translated
agement relations, and necessitat,
in population suggests
rising demand for products and
be
Are There Too Many
the vast changes which are ahead.
services.
pared to increased population
growth during the next 20 years,
mean
able
are
Sales?
Growth
Noted financial writer forecasts
does
Such
foolishness.
our
,
(1341)
G. H. Walker 8C Co.
tio
•
The Commercial and Financial Chronicle
(1342)
.^Thursday, March 21,1957-
.
*
change Commission, in this -husi-
testified
gard
to
were
going
on
and
Commerce
stamped out for
which have recently been appearing.
-
'
Committee
of
Representatives in
the conditions that
and in regard to our
CLEVEHAND,
the
J.
Ohid
Charileg
—
Kilroy
Polin
are
en-
pany,
We have also
considerable amount of
a
]
and Benjamin J. Mq'April 1 will become
partners* :in-McDonald
Com¬
re-
forcement program.
speht
:
Admit Two Partners
length in the .past three, weeks
1920's which
address, SEC head expresses
belief 1957 new security public offerings may go higher than
the $11 billion in 1956 and may burst through to almost
$12 billion. Moreover, Mr. Armstrong expects new plant and
capital equipment to approach an all-time annual high of
$38 billion. Refers to regulatory activities and commends the
NASD in alluding to problems facing the SEC in dealing with
trading markets and new issue markets.
McDonald & Co^ lo.
T'
before the Interstate and Foreign
House- of
years
of the
success
•
Commission .has
many
extemporaneous
an
" W
about from time to time
about some of the abuses of .the
character
that
existed
ih
the
Stressing the importance of listed and over-the-counter marin
at
spoken
Chairman, Securities and Exchange Commission
kets,
our
-
I. have
which
information
tual
interested in the
as
propose.tq give yd'u market." ;
gentlemen tonight, on this qccar-;
sion, any of the detailed anq fac-
SINCLAIR ARMSTRONG *
By 3.
I don't
ness?
Successful Functioning of
A Free Capital Maiket
oh
-
Uniori Commerce ^ Building,
members
the "New
of
York; and
Midwest Stock Exchange's.^ Both
time in the last week before the have
been with the firm for
many
Senate
Banking
and
Currency
I would like to say to you and
•years.
Committee on that subject:
to suggest to you as a matter to? ?
/.
'v»
approach and a matter oLphiloso-.
■
The Concern of Congress . {
phy that when the Securities and x
believe that the interest of
(Spe&altq Trie. Firn*nciai, Chronicle) .' /
Exchange Commission steps up the Congress in the success of the
/ DETROIT, Mich. — Donald it.
its enforcement program, its anti-capital markets, and in the suc- Helson is now wittu Simon; JE.
fraud program, its
anti-mamppla- cess of our regulation on the Fed - Dunn &" Co:, 500 Griswold. yv *7'
tive program and all of its brokerera] level and in the success of
>
:.i V * >•;'.'" • i *
■
' • 't ri*? y
r
\
dealer programs,
that * we * have
gtafe r egulation, the
State
been stepping up in the last sev-.
Joins HudsonWhite : Vi
authorities here in New York, the
eral years because of these condi!
(Special to The Financial Chronicle)**
anti-fraud work which the Attortions in the markets, we, m effect,
DETROIT, Mich.:— Camille GeJ1€y General does, and in the sueare
doing the industry and ^tne^ cessful operation * of the Dealers bella is now associated with Hud¬
capital
markets
a
tremendous Associations that were authorized son - White &Company, Buhl
service just as we are. doing a
by the Malonev Aet amendments,' Building. Miss Gebella was previ¬
service
to
the
investing public which AIr Dunne, referred to, I ously \\dth Smith, Hague & Co, ;
because you gentlemen who arethijtk-.that- interest on the part .of
here, by virtue of your ov^p points the Congress is extremely impor-.
- With H.
H. Butterfield
of view m regard to your husmess
tant from the standpoint., of the
X (Special to The Financial Chronicle)
"v
and by virtue of your »point
^ of successful operation of your busiJACKSON, Mich. — Clyde %
view
expressed by this Associar. ness and of the capitai markets
Perkins is now associated with H*
tion, you who adhere to the high
ultimately for the success of the
H. Butterfield & Co., City Banl§.
standards ol conduct that are-spe-;
free enterprise system.
'
cifiedin the membership, m. the
Building,> "v '•* V '>• Y:"Y';
;
can*t say that phrase «ilee
NASD, you- certainly are subject¬
CI.r
VT\ en
A
•
Efforts
"
■
.
-
,
,
■
I think it is very
the
New
York
Association
significant that
Security Dealers
formed
was
be¬
even
fore the enactment of the Federal
e
s
c
rities
u
laws
of
out
desire
a
with
and
the
mo¬
tivation of
raising
the
standards
o
f
conduct in the
business.
that
I think
is
absolutely
vital and
think
the
I
co-
to
it works this way: When a
me
is in need of new money
company
to finance an increase in
to build
business,
plant, to purchase
new
a
capital equipment, to finance
tremendously increased work¬
hew
the
ing capital requirements of the
present day and to finance the
tremendously important develop¬
ments flowing from the perfectly
astounding technological progress
that has been made by the re¬
search of our country in the last
20 years, when a company needs
to raise new money for those pur¬
it is simply impossible for
poses,
the internal funds of the company
They have
operation
to
which
ex¬
got to go into the capital markets
and seek from the investing pub¬
pressed
by
lic enormous amounts of new cap¬
Mr. Dunne
on
ital.
has
been
«f,. Sinclair Armstrong
behalf
of
are
appreciative
equally
of
an
they
do
it if there
active trading market
for securities?
For
one
thing, the
trading markets supply an indica¬
tion of the ability of the capital
toward
market
in
markets
the
of
could
How
weren't
impor¬
we, as you, recognize the
tance
of
that
attitude
the
and
.
a
as
whole to
the
absorb
•
fair
dollar
this
industrial
country
shared.
of
very broadly
which
the
be
studies
Institution
Brookings
the studies
Stock
to
The
wealth
has made,
which the New York
Exchange research organi¬
have caused to be made,
zations
underwriters
of
the
is¬
new
certainly vitally conr
cerned, as are the issuers, with
the pricing and the fact that there
are
pricings available and there
is liquidity in the trading markets
are
that makes it possible for issuers,
underwriters
and
to
investors
issue of securities in
the market-at .a proper and ap¬
propriate price in relation to ail
of the market conditions prevail¬
ing..
7
' Y
place
new
a
the
the
over
four
past
least
two
that
today
as
This
for
securities
individual
investors
'"
to
lias
considerable
a
porate
;
of
which
*
♦
«♦
.
.
♦
Of
are
course,
the
listed
extremely important
area.
listed
markets
in
that
I suppose it is true that the
markets provide a consid¬
Lynch, Pierce, Fenner &
BeanCy 121 South W ashingtonAvq,
With, F. L,. Putnam
>.
-
BANGOR,
Steel is
now
Putnam &
ton.
A.
-
v
•
(Special-to The Finanxial Chronicle)
He
Maine—Brainard F,
connected with F. L,
Co^npapy, Inc., of. Bos¬
previously .with Chas,
was
Day- & Co.\ ■;
t;
v;»
,
t'' ''
.
'•
*'
-•
y
«
...
*;
"
'
r,
'•"'
- t,
-T '*>'*?
—
'
•
'a '
'
"-'
'i
-
-
Appalaciiian Electric Power Company
;
securities,
estimate to
we
have
First-
that the total
year,
securities
offerings
of
may go
Mortgage-Bonds,--.4®*i%. Series due-r-l'987,>>:.■"I»
Dated March 1; 1957
V '"'C
X
Pubteh'i,"i^7 *tQ \^
V'
been
*
Price 101.22% and accrued interest
.j
_
'
j
+
•
w
tial basis their plans for-the cur¬
and
v
.•»
i
rent
•
f
liquidity. They can buy stock and between $8 and
$9 billion. In the
they can sell stock without fear, present year, we
believe, on the
in most cases today, that they are
basis of information that we have
going to be locked in; xied up in obtained from
many
companies
investments; frozen in over long that are willing to
cooperate with
periods of time;
•
- us iii furnishing us on a confiden¬
i,
Commends Both Types of Markets
.
Merrill
$29,000,000
•
-
y
..
cor¬
measure
now
Ralph W.
connected with
'
-.-*
publicly sold,
reached a high figure of $11 bil¬
porations is the fact that the lion. That, .of course, is somewhat
money they have invested and more
than the
net increase in
have tied up in those securities
corporate
issues
outstanding
American
in
is
Parker
i
Mich
SAGINAW,
offer p sell.or a solicitation of an offer to buy these, securities. •''*>
The offeringis\maJe only by t)ie Prospectus.
' .
" \ff* *■•
V'
The ability of industry to raise
is estimated there this quantity has been, particu¬
are well over eight and a half mil¬
larly important and I think the
lion individuals owning stock in
market.itself has done a perfectly
American companies.
outstanding job in recent years.
One of the things that makes it
For example, last year iii 1956, the
possible and feasible and attrac¬ total volume of new issues of cor¬
tive
.i.-•••
(Special to The.Fin.wcial Chronicle),
announetmeyit is not an
Financing
it
■own
*
>
;
,
y'
*
Merrill'Lyhcli
■t.Joins
free capital market is
important.
interested in our program■ and ; vestor.
K»
James
—
J.-Nephler 'Col, Community^
National' Bank Building*
ards of the securities acts to be
veiry much, in your favor as well
as in the favor, of the public bi¬
years
;
C.
from
•
•
'
well as from
In your business it is equally
the investirig an important part as are the other
when the two Committees of the Congress concerned
with our Commission have; been
recent
so
years
PONTIACf Mich.'
!
:
In 1957
at
individuals
million
by
Increased
vitall
a
Nephlef
f(Special tcrTatTi^sxciAt Chronicle) .'
"
McDbfmid' is now connectetJ With
public.
'
'
" - #'
'segments of the-business which I
Finally, just let me 1 say this havq < mentioned.
I' believe that
about the present position of the you should consider our efforts on
industry in relation to the" Con- the part of * the* Securities and
gress.
I believe it is true " that Exchange Commission a to carry
there has never been a time in into effect the regulatory stand-
■
Predicts
"
important
standpoint as
standpoint of
.
have indicated the growth in the
number of shareholders
in
and
tinning of
.
with the
tremendously
the
sues
With C. J.
•
dous individual; freedom, t>ut also
co°Per^^?" of
government agency
you
ing public.
Why are the trading markets
important? I think the real virtue
of active, healthy liquid trading
markets is this: The capitalistic
system in which we live has per¬
being placed with the in¬
vesting public. For another thing,
Sf
^Wch toerp is not, only
conn-
The-*uftuCtive
your
the
against the high pressure,
type
of. a«ivity
in this
system" too often be-
countries,, the greatest
country left in the free world in
great
try and seen coming *; into.* this ®
tonountipf^eeonomic
country out of Canada in receiit^freedom.*._Tbat-'is ppr basic philpsophy, and m.that<free enter¬
years.
prise -system, the successful furic-
that
are
the
'boiler-room"
tremendous volume of new issues
mitted
competition, when you have
got to compete for the investor's
you trade as well as for
the ultimate benefit of the invest¬
success
entefprise
ed to what I think of as very un-
is
which
.
^
-
which has been seen
with
association
your
the Federal regulatory authorities
is something that we on our side
supply that money.
-'
The
new
k
*'
*'
«*
■
^
*
.•
k
V
" ;
/
V.
..
vVrY
»• w
j.
r
Prospectus may. be. obtained iii'any State in whf'ck this annoiw&mfnt lis
of the undersigned and'.other.'dealers as* may lawfully dfferthdse securjtiefffffffucb^tdtetp^':
f
<
!
'v''-
- Aye
higher
burst through to almost
$12 billion.
may
erably greater total volume in the
'.Record Capital Outlay
trading of securities, but I think
If that money was, not
made
it is very important that the overavailable from the savings of the
the-counter markets, which are
American people to American in¬
markets for many
hundreds, in¬ dustry through.the capital mar¬
deed thousands of companies that
kets, there would be no other"
are
not qualified
to be on the place in the
wdrld tliat
HALSEY.,STUART .& COv lNp.
j
..
-
bearrstearn$, a. CO. ^
,
equ jtable
by
the
dealers who
are
over-the-counter
making markets
in the over-the-counter securities.
1
How
does
that liquidity, that
facility available to the
individual investor to buy stock
and sell stock, how does that re¬
late to capital formation? It seems
ability
•From
or
an
extemporaneous
talk by- Mr.
Armstrong before the 31 st Annual Dinner
«f the New York Security Dealers Asso¬
ciation, New York City, March 8, 1957.
sion
on
requirements.
-estimates
worked
out
in
Again/ based
which
our
we
'
•
-
'r
securities corporation
DICK a
l. f. rothschild
FRANCIS
I. duFONT
&.
CO.
&.
co.
R. W. PRESSPRICH
WERTHEIM A CO.
,
GREGORY & SONS
,
MERLE^MITH : p.?r.i*-
LADENBURG, THALMANN & CO.
Paine, webber^ jackson & curtis ;
American
listed markets, are also provided
industry could get the money
With liquidity for trading" pur¬
needed for those capital expan¬
poses
v
&.
v
..
CO.
^
IRA HAUPT St. CO^
.
have
economic
■
re¬
BURNHAM
AND
COMPANY
Y
,
AUCHINCLOSS, PARKER
&7REDPATH
search
organization, we believe
that in the current year the total
capital outlays of American busi¬
ness
corporations for new plant
and equipment will
probably ap¬
proach $38 billion, an all-time an¬
nual
BALL, BURGE S, KRAUS
hirsch
:
Y
&
co.
McDonnell
a
-
/
high.
What
are
the
problems of the
regulators,jthe.Securities
and Ex-
March .20.
1957.
-
1
'*•
FIRST OF MICHIGAN CORPORATION
COURTS & CO.
& co.
new
yw^egppllock
'J
york
hanseaticxorporation;
&'co.t inc.
Y'/
^
"
v
A
'
Volume
The Commercial and Financial Chronicle
Number 5622
185
(1343)
J?5£^and all"time) t0P of 87 V2. ent price level of the shares,
If
Class in Glass
87V2
By IRA U. COBLEIGH
Enterprise
would
Economist
Glass
is
not half
proof
wonderful
a
'•
;■
1
Cora
most
glass'
metals;
■
■
so
.
.
,
if
now
,
.
js
as,\
that
is
Droducer^of
stable
a
^d
brick;
Works
Corning
half" the
owns
pnmincf
rn+tch.ircxh
pre¬
served- unto
$23.50
a
day, glass
v a s e
Pittsburgh
One
of
Glass
stock
icfvioe
'
Corning.
the
in
Vioc
-
•
buying i°r $44 indicated
.....
-
Ik
GL^ ls selling at 15 times
earnings, on that basis—an uninflated
ra|io
for
a'stock
postwar .glamor in-.
fihor
hoon
cflacc
,Wp
*
dustries has been fiber glass.. We
have
Egyptian
flourishing
5,000
y e a r s
c
*
.
artistic
from
uses
;
glasses
to cathedral
windows; from beads
bedecking beautiful ballerinas, to
the huge telescopic lenses at Mt.
Palomar
Observatory; from
ocles to Macy's windows.
everywhere
and- the
that's
it
held
Civilization
Right
goblet
you
it
Old
even
native
brittle-
overcoming
we
make
can
a
lot
at
.Heidelberg);
have
we
40-foot .motor boats,
of automobiles.
bodies
age—it may also
an
But
the
and
talk
We
jet and atomic
be
described
upon
serviceable
of
one
the
re¬
most
and
sparkling prodof mar\ ind.
Let us proceed
glass in general, to Corning
ucts
from
Glass
Works
fabulous
in
particular.
It's
turning
company
a
out
35,000 products from flexible
glass ribbons only 1/1000th of an
some
inch
thick,
dows
weighing
insulate
the
and
stallations.
In
known
from
in
reactors
win-
17 tons which
over
laboratory,
best
massive
technicians
and
ers
to
cook-
neucleonic
plant
in¬
household
the
power
the
product
is
doubless
"PYREX,?, the glass heat-absorbing oven ware, native habitat of
macaroni, baked beans, and
role
dishes
for
buffet
casse¬
suppers,
Far less well known is the fact
t.
that Corning
is the largest
This of
.
manu-.
color
TV
promising
-market, however, has not unfolded
as
had
been
expected,
because of certain technical diffi¬
culties, and the fact that color sets
have
;
to
•
not
brought down
yet been
popular. price
levels.
.
When
^color TV really catches on, you
'may expect another surge in GLW
earning power from this source.
-
Corp.; (Dow
Chemical* has' the
.
,
current
glass
accent
most every
anc*
;
C. J. Devine Adds
(Special to The Financial Chronicle)
ST.-LOUIS,
Mo. —William
,
,
on
research
industry
you can
in
-
of
C.
(Special to The Financial Chronicle)
BOSTON, Mass.—R. Allen Key-
J.
Devine
&
think
More
v
forces
-
GLW
is
not
in its
only
.
'
Sylvania
Electric
$2,250,000
to
company—Sylvania-
new
a
Pittsburgh and Lake Erie Railroad
Second Equipment Trust of 1957
-
metallurgy in the development of
nuclear
fuel
elements.
A
new
employing 300 people and
costjng around $5 million is to be
plant
completed
Mass.
in
1958
down
elements
the
of
various
business
lamps
an
high
"To
way,
To be
There's the
por
1958
1955)
1966-72
3.80
high ground
$157.6
million
to the
pressure
of higher labor and
$1,830,000
ma¬
net per share on the
costs,
shares
(6,681,202
This should
these
3.75%
3.70
1956
out-
Ann Arbor Railroad
standing) slipped by exactly four
cents from $2.76 in 1955, to $2.72.
over
1960-65
1959
new
vs.
vs.
but due
common
3.625%
0f consolidation. Gross
mimon
terial
each April 15, 1958 tt> 1972, inclusive
MATURITIES AND YIELDS
vista
refractories,
fiberglas, ; glass
resins,
year
squeeze
on
temperature
^a]es moved into
($163
$150,000 annually
tubes;
long-term
Corning Glass Works,
a
mature
guaranteed unconditionally as to payment of par value and dividends by endorsement
by The Pittsburgh and Lake Erie Railroad Company
brick and nucleonics,
in
(Philadelphia Plan)
"j?-
1
.»
incandes-
in
electronic
and
exciting
silicone
was
VtLf
Equipment Trust Certificates
\
.
.♦VlK
present and prospec¬
traditional
in
35/s%
•
.
,
component
tive earnings of GLW.
and
,
.
This, in the briefest sort.of
cent
•
Andover,
at
alarm
no
one.
-
More¬
Equipment Trust, Series C
figures do not include '
undistributed
earnings
in
associ-
:
ates
..
3%%
"
-
»py saies
year
•
r<
,
To
-
*
To be
J
-
mature
are
but' the
second
improve; and toward
year-end some real forward
in
color
TV
materialize.
is
1
MATURITIES AND YIELDS
a
1958
3.625%
1959
3.70
3.75%
I I960
.
3.80
1961
mo¬
1962-72
to
3.85%
;
manage¬
viewpoint,
$5'million
1972, inclusive
•
the
expected
GLW, in respect to its
ment
(Philadelphia Plan)
$122,(XX) annually April 1, 1958 to
guaranteed unconditionally as to payment of principal and dividend warrants by
by The Ann Arbor Railroad Company and Wabdsh Railroad Company
half
should
tion
-
ex_
half> due to high TV set in-
ventories
Equipment Trust Certificates
L
endorsement
pected to be unimpressive for the
first
•
.
,
its allocation of
year
for research,.
growth
many
an
stock.
In
common
of these Certificates are sub ject to authorization by the Interstate Commerce Commission.
Offering Circular ?nay be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.
Issuance and sale
The
-
such
HALSEY, STUART & CO.
other shares in that general
the market has, in recent
DICK
&
MERLE-SMITH
important'months, substantially lowered the
right, but it
Inc.
with
price/earnings valuation formula,
powerful partner in related. In the case of GLW, today you
enterprises.
For example, glass can buy at 67 \k a stock intrinbrick i3 enjoying steadily-broader .sically superior to the same share"
acceptance in residential, indus- you might have bought at the
own
a
f
Joins Mountain States
,
recently;'GLW has joined
with
form
class,
company
b.
Co., Boatmen's
Building.
nant factor in silicone resins.
.
al-
-
Wilson has been added to the staff
Bank
With Townsend, Dabney
course
Jong,.
& Co-' 120 South La Salle Street.
B Hyman ]s now connected with
;
de
...
laboratory
°f-
*
Marilyn
111.—Max
associated with H. Hentz
Other GLW items include photo-
sensitive
is
Ohio
•
now
*
other 50%) regarded as the domi-
its substantial retention of earnings in the form of plant reinvestment? and its demonstrable talent
glass equipment,_ a broadly ex- for developing and
marketing new
panding market due to the heavy products, definitely qualifies as a
..
-
H
Jr. is
Financial Chronicle)
CINCINNATI,
_
CHICAGO,
With Hill & Co.
.
,
,
swiftly
.
(Special to The Financial Chronicle)
.
.
.-as
With H. Hentz Co.
.
_u
-
,
Plankinton, 1637
'
'
'
yet
preferred js ; not a bountiful ..cash yield, worth is with Townsend, Dabney
selling around 100 and conDENVER, Colo. — Howard
'
<
■
v
'
,
,
vertible share-f or-share into Th®re was> however, a 2 A-for-l & Tyson, o0 State Street, mem- jjorne has become affiliated with
Owens-Corning
Fiberglas. com-,, split in January of 1955, and an- bers of the New York and Boston Mountain States Securities Corp.,
mon.)
-v
< /J"*/other split, considering the pres- Stock Exchanges. •
~
Denver Club Building.
A third partnership interest is
,v
! ;
'
-50% Ownership of-Dow Corning
now
heavily in for TV tubes, and be- larger sales were for portable sets
came, the
largest maker, a fact-which use smaller (and less exwhich contributed importantly to pensive TV
bulbs) 'than the 21the classification of Corning Glass and
24-inch
household
cabinet
'Works common as a growth stock, sizes. '
"
'* ;
r
Right, now GLW is preparing to
por
leadership
in
glassware.
This most
not
Owens;, Illinois 4^%
whichy for 1956, totalled $4,facturer of-electric light .bulbs, 772,616. Another point about last ;
tubes 'for
radio, television and year's results—while TV;unit sales *
radar.-Right after the war it went held' up
quite
well,
relatively-/
assert
South Broadway.
company
^
sets
enough of this random
flection
is with Walter R.
-
as
of glass.
age
(Special to The Financial Chronicle)
DENVER, Colo.—Frank Stubert
new zest to this
Corning is
glass
*
Joins W. R. Plankinton
-
so
and
about this being a
and Boston Stock Exchanges
of
(this
fiber glass, so strong and resilient
that it is used to make the hulls
of
and Boston Stock Exchanges.
2,100,000
owns
brick
a
shatter
remarkable
Street, members of the New York
which.. position plus the fact that depre- Hill & Company, Carew Tower,
common,ciatl0n charges and retained net members of the New York and
shares (a 31.8% interest). .This earnings _riow deliver over $20 Mjdwest Stock Exchanges,
common also has been, a popular^ rmlhon
per year, suggest that ;
GLW
tough Corning Nuclear Corp. - This will
wall combine the know-how of Corning
could in glass and ceramics, with the
of drinking sprees at . special technique of Sylvania in
hurl it
won't
a
sybaritic
our
even
now
thing
from
-
(very expensive)
that
and
spoil
its
is
we're
and
that.
Glass is
only
back
wider application in
ness;
mon-
its
'(Speciiil to The
glass shareholder is via purchase -67Vz yields 2.22%.
cocktail
to
(Special to The Financial Chronicle)
and actively traded growth stock formj7g will have no• early need
on the N. Y. - S. i E. "! (Another in- for J-financing.
At the present;
direct way of becoming ! a * fiber- * dividend rate of $1.50, GLW at
of
allusion
revolutionary
,
,
seen*
Fiberglas-Corporation,
practical and of
.
"a
promise
*
hundreds
U. Xobleigh
Ira
of
Hutekin* & Parlrin«nn
nuicilins GL rarkinson Add
""
/
BOSlTON Mass.—Don P Johnson, Jr. has been added to the staff
of Hutchins & Paikmson, 27 State
'full-blown."
such
containing
«
great
--- *
a
Strong,
brilliant,; it is
a d a p t a b le
to
ago.
..
creation
s; orna-^ sulation,
i viliz-ation
e
imaginative; and
recent
^
properties," adds
share
per
Ire
an
+;
the
.
and
Decker's
(which is not unreasonable) new
type of material" to "considroughly,, the combined value erably expand the use of elass
it rocket ahead in in- > Financially ..GLW has long enfinancially JjUW nas long enceilings -and partitions,13pyed; a - high state of solvency,
m e n t
s, a n d fishing
rods, curtains,.; awnings, * /J16 • * ^ - / year-end * statement
goblets which etc/* Well, the General Motors oL/Show^ networking capital of alrelics
of this
product -is
Owens-Corning
$50; million. This current
this
effective
example, Mr.
allow
you
share
,
so
have,
much
we
For
right
Mr.
and
Decker, President,
Mr. William C.
optimistic
^
and
than
corrosion-resistant
;
that sub-
an
product,
durable
more
indicate
bias has been made.
of the most
in the world—
one
It is water¬
appreciated.
and
s,
to
seem
stantial correction of
Containing some favorable reflections upon
eminent glass manufacturing organizations
Corning Glass Works.
would
'.getting ahead of the not seem illogical.
story", for GLW then the opporThe
management "undertumty to .buy 20 points lower,
Amory Houghton, Chairman,
was
11
FREEMAN
& COMPANY
R. W. PRESSPRICH
McMASTER
&.
CO.
HUTCHINSON &. CO.
(1344) ■'
12
The Commercial and Financial Chronicle
homes, new electric ^refrigerators,
dishwashing and clothesnwashing
machines, new and better heating
utation
at
and
World
War.
reason
be any
systems,
.
Possible Armament Reduction
Tides
Business
IIEXRY HAZLITT*
Columnist
there
Hazlitt terms
Mr.
penditures
there
be
may
was
the
of
effects
I
most of
agreed
in
assume,
fiscal
simply. If the government's de¬
fense expenditures are cut by $20
are
us
billion
it can also cut
billion a year (as¬
suming it wishes to keep the budg¬
et in the same balance as now).
on cer-
tain
broad
taxes
considerations.
One
that
is
b 1 e,
without
danger
civilian
year
duced.
to our
fense industries
fense industries will
be
Henry Hazlitt
ali'ord
long
as
relax
to
the
as
world
gain.
posed
In
by
adverse
its goal of
continues. A
that
a
expenditures
are
neces¬
to keep the economy going at
sary
agreement with the Soviet Union
the economy as
on
whole. The belief that huge gov¬
ernment
disarmament
any
effect
net
no
lull
In the
now.
total of $35 billion: in the
a
1947 it spent
year
was
$39
bil¬
a
period of $56 billion. Yet, far
from there being a recession in
this three-year period, there was
year
substantial
a
increase
in
employ¬
refutation, and in spite of the
iact
that
rested
it
on
sound
no
A
there
pose
antees, in practice, would be
cerely
tremely difficult to
force.
The
ex¬
of
a
agreement that would give
people a false sense of con¬
fidence, and cause us to relax our
can
the
""CW
their
basic
own
sup¬
propa¬
assumptions
Communist
Communist
Ihere is
telling how much busi¬
no
will deteriorate.
called
attention
several
times
"Newsweek" column to the
my
experience and its ref¬
utation of this theory. In The New
York
"Times"
Arthur
of
Krock
Sept.
8,
1955,
a
table
presented
summarizing
a more recent experi¬
This table consists of com¬
ence.
theoreticians
dollar
armament
involve
in
a
-
no
really do
believe
that
necessarily
corresponding reduction
itself—or
armament
would not
rather, it
necessarily involve any
much
So
tant.
A
government,
if
everyone
of
funds
our
are
be¬
now
wastefully,
i.e^ for unnecessary or duplicate
projects and activities that do not
really add to that security. A
study by the Hoover Commission,
or
broad
a
billion
$20
tures
some
for
overall
view of the matter. But the qual¬
ifications to be made are impor¬
real reduction in national security
ing spent foolishly
armament
would
dustries
reduction
of
not
equally.
would
in
expendi¬
course
affect
hurt
much
as
the non-defense industries
would be helped. And the burden
as
of
the
loss
would
not
be
equally
defense
numerous
expenditures
in
the
"defense"
of
It
past.
is
Congress
only
where to find
funds
probable
similar wastefulness still
knew
that
exists if
how
and
it.
a
50%
Cut
consider the
probable economic effects of a re¬
way,
we
may
duction in armament expenditures
if such a reduction were found to
be
possible
on
other
grounds.
Purely as an arbitrary hypothesis,
I
should
sults of
like
discuss
to
the
re¬
cutting the present annual
defense expenditures in half
over
the next one, two, or three years.
In the budget for the fiscal year
1958, $38 billion would
for
be
spent
bigger orders for steel for bridge,
road, factory, and office-building
construction.
A
manufacturer
of
guided missiles might have to sus¬
pend operations completely, or at
least
close
plants
The
down
working
particular
on
the
particular
such missiles.
towns
in
which
is
to
go
for
what
the probable effects
•Statement
Subcommittee
Senate
of
Mr.
on
Ccmm'ttee
Washington, March
Hazlitt
before
Disarmament
on
Foreign
13,
1957.
would
the
of
the
Relations,
*
1
'
spending
rate
of
what
say
in ad¬
particular
com¬
or
services taxpayers
houses,
washing machines, hi-fi sets, au¬
tomobiles, or more vacations in
—
Florida
France.
or
Resulting Diversion of
Expenditures
Yet
we
that such
tures" will
know
a
from
experience
diversion of expendi¬
occur, and that theTe is
an
1954, and
$15.8 billion less than in the
cor¬
and
in¬
the
standard
and
services that do not.
But
of
living for
goods
will do something more
than this.4 When we reduce the
burden of taxation
(and
high
we
by
assumption
$20
some
we
are
billion
our
reducing
year)
a
it
not
we
naive theory.
very
the
It
that it should have
much vogue. True, people
low incomes spend a higher
with
of their income—per¬
of it — on consumption
all
and
higher incomes spend
some
production
on
services.
and
What
continuous
ment,
this
back
of
flow
continuous
profits
into
equipment, and
new
that
of
production
that
the
to
other
that
Keynesian
while
the
rests
most
on
theory,
rich
mysterious
not
time
fashion.
here to
this
increase in
their
discovering
The
would
and
new
gain
that
for
mean
our
productivity from the
investment to which it
lead would mean a sub¬
would
stantial increase in the real
wages
of
American worker.
every
With T. R. Alcock
.
The problem here is not excessive
(Special
It
is "non-spending."
only In a depression,
people expect prices to be
(o The Financial Chronicle)
BOSTON, Mass.
exists
responding
of
increased
heavily at; a time of de¬
pression, neither do they spend
as
rnuch on consumption goods.
when
half
ability is that it would be a very
great gain indeed; and that the
There
while it is true that people do not
"saving."
Cor¬
economy is obviously not a gain
that we are able to measure
pre¬
cisely in advance, But the prob¬
fallacy at length. I must content
myself with pointing
out
that
This
than
products.
lower taxes
wit.
their
examine
considerable
a
hardly be expected
can
more
better
income, they do not "invest" all
that they save, but "hoard" it in
is
to
highly probable.
research for
an¬
to
"save"
pay
But
income, for example, in taxes, and
still invest as fully and
boldly as
they
otherwise
would
in
new
equipment for producing, or in
Of course, the Keynesian error I
just discussed
investment.
retarding production
investment
porations
powerful and the most prosperous
country in the world.
have
and
are
degree is
plowing
plants,
methods,
has made America
we
and
invest¬
new
new
all
v
is
It is in¬
invested, it im¬
existing plants and equip¬
ment, adds new plants and equip¬
ment, increases the productivity
of
jobs,
and
consequently
the
wages paid
for those jobs, and
provides new jobs. It is precisely
this
production
ously devoted to defense work, we
shalK probably
increase
it
by
much
more
than the equivalent
of $20 billion.
It is impossible to
calculate by just how much our.
present huge burden of taxation,
our
steep levels of personal in¬
come
tax, corporation taxes and
excise
taxes,
are
discouraging
services; while people
part of their income
to
production by $20 billion to com¬
pensate for the $20 billion previ¬
percentage
haps
incentives
along the line. Instead, therefore,
of merely
increasing our civilian
so
Currier is
&
1953
quarter, i non¬ lower next year or next month
activity was running than
tjhey are this year or this
quarter of 1955 at month: or lack confidence in busi¬
a
rate $30.6 billion higher: than
ness altogether.But obviously it
in the same period of
1954, and is
not
the
non-spending
that
$31.3 billion higher than in: 1953. causes the
depression: it is the de¬
C.
—
with
now
Bertram
T. R. Alcock
Co., 80 Federal Street.
government
in
the
An
Invalid
pression
Theory
|
brief, the theory that Amer¬
ican prosperity rises with
qn in¬
in
crease
in such
defense
government
spending and falls with
decrease
a
spending receives n<j> sup¬
from theory or; from
either
experience.
'
-
.'•
»
sists, I suggest, for two main rea¬
sons, apparently contradictory but
perhaps not really so. It persists
because it is what one might call
man-in-the-street economics.
knows
that
he
is
and
of
managers
know that
they
government order.
located
know
if
on
The
that
stop,
that
plant
plant
a
is
order.
what is obvious—
government
to
on
residents
the
particular
from
plant
the plant is
government
a
have
orders
that
see
the
own¬
the
working
are
of the town in which
and
working
government order. The
a
ers
The
who is working in a defense
plant
on
close
some
orders
plant
down
other
to
the
causes:
It is
or
will
get
source;
the
particular jobs the
provides might have to be
tinuous
only
or
if it
as
were
It
permanent.
toward
the
con¬
shaken.
bottom
of
the
<
•
reduction
itures
of
armament
general
a
the
of
of $20 billion
duction
expend¬
dimensions
Such
year.
would, necessitate
a
be, taven
re¬
look, finally, at the probable
long-term
effects
of
a
in
cut
armaments of these dimensions.
still
purely
speaking,
of
question
effects,
assume
of
argument
of
security
for the
that
is
the
not
in¬
volved.
armaments
goods and
we
an
order
will> have
that* much;
mere
to
living of the
of the American people. If
should stop producing $20 bil¬
lion worth of these
and
•
build
Gladstone &
engaging
from
in
Company,
securities
a
offices
at
470
:
Avenue, New York City.
Income Fund
Enterprises
JAMAICA,
N.
Y. — Income
Fund Enterprises Corporation has
been
formed
Hillside
25
with offices
Avenue
securities
.1.
to
at
168-
engage
in
business.
I
«
.
/
(•
A. H. Kupersmith Opens
Aaron
ducting
offices
New
H.
a
Kupersmith
is
con¬
securities business from
at
West
250
York
57th
Street,
City.
McDermott, Johnson Opens
&
MINEOLA, N. Y. — McDermott
Johnson, Inc., is engaging in a
securities business from offices at
150
These long-term effects will be
entirely good. For the production
government
place such
annually, the taxpayers
Bush
•
course,
economic
continuing to
purpose
of
I
masses
to
Fourth
a
now
is
business
adjustments, of course, serious for
particular
individuals
or
firms,
but not likely to be serious for the
economy
as a
whole.
We must
from the taxpayers, and that if the
ceases
Inc.,
some
raise the standard of
will
-
82
City
of
name
"
•
York
.
So
far, I have discussed^ the
probable short-term effects of a
of
firm
Co..
Gabriel
occurs
business cycle when confidence in
future has been
profoundly
and
the
a secu¬
offices at
New
Gabriel Gladstone Opens
.
income brackets
order, has been
or
under
from
Street,
Securities
"hoarding"
or
nonspending by people in the higher
am
engaging in
business
Beaver
non-
is
production of
services, like airplane
carriers,
atomic
and
hydrogen
bombs, rifles, machine guns, tanks,
bombers,
combat
planes
and
guided missiles, that do nothing to
or
What
rities
complete fallacy
a
might vanish entirely.
is less obvious, and too
often forgotten,
is that the $10
million, say, that the government
pays for the fulfillment
of this
changed
Max Bush is
regard
the
Why, in the face of this; does
this strange theory persist? ft per¬
man
that
spending.
In
port
Forms Bush Securities
second
either
impossible to
at
ran
toil
In brief, we will substi¬
goods and services that raise:
tute
invest
$3.4 billion less in
the 1955 quarter than in
And it is
of
"spending for major national se¬
curity and closely associated pro¬
grams." For the convenience of
using a round figure, let us see
government
that
on
45.2
339.G
'
see what these
fig¬
They show that while
All of them
vance
48.6
309.0
'im
us
show.
annual
1955
$357.6 $384.8
61.0
let
rates.
1954
$369.3
308.3
working
would spend their newly retained
incomes
whether
on
billion
Now
ures
are
of
services'
be
plants were situated might
hurt. Workers who had ac¬
had
some
expenditures
and
other
quired specialized skills might be
temporarily out of employment.
modities
$45.3
foods
All
Product—
purchases
such
the
military functions of the
Department of Defense, and a to¬
tal
The steel industry, for example,
would doubtless suffer a cutback.
Yet It might find that smaller or¬
by
With these preliminaries out of
the
non-defense industries.
among
ders for steel for defense
purposes
would be largely compensated
Implications of
Federal
The defense in¬
be
distributed, eyen amopg
investigations by. industries, any more than the
Congressional
committees,
have benefits of the new civilian spend¬
brought out appallingly wasteful ing would be equally distributed
and
annual
1953
Natl.
Gross
the
American people must go on pour¬
on
not
The figures
seasonally adjusted
Here is the table:
'
expenditures
would
quarters of 1953, 1954 and
1955 respectively.
of
economics
ing out foreign aidy and must go
on with the
present huge govern¬
Given these broad assumptions, ment expenditures on
armament,
however, I should like to make
in order to keep their capitalist
one preliminary observation. This
is that a cut in our present huge economy from collapse.
overall
second
the
needless
people.
a
proves
spending program is aston¬
ishingly persistent. If that rises,
we are told, business
activity and
prices will rise, but if it declines
"»
doubt
be
never
to
reason
a
fense
theory that our prosperity is
dependent on the government de¬
and
the comforts, amenities and
opportunities of life for all our
incredible
"saved" is in fact spent.
vested. By being
grotesque enough; and most of
are
ment
guard prematurely,
overlooked.../// 1
the
orthodox
our
no
believe
ganda,
and en¬
disarma¬
secure
danger
is
that the Russian rulers sin¬
fourth is that such ironclad guar¬
This is
is
theoretical basis in the first place,
expressed in billions of dollars at
absolute
from
of
more
churches
will ' reduce
we
-
and
laboratories
"spent," it is said, helps business; only give our citizens, spending
the income, that is "saved"
does, power tp use for the goods and
not help
business, but leaves it services that raise the quality of
stagnant.
1
th£ir own lives, but we increase
the
While
worthless
obtain
derives
highways,
schools
crease
volume
"modern"
jsjoods
would abide by the agreement.
could
orders
the
while the people with
comes
ical
guarantees that the Soviet Union
than
worse
we
the
on
amount
per¬
that
theory taken
from the writings of the late John
Maynard
Keynes.
This
is
the
singular theory that people with
with
parative official statistics for the
be
unless
defense
peculiar
goods
blast
is
a
complete myth.
Many of our citizens, unfortunate¬
ly, sincerely believe in this myth.
would
of
ment, wages, and prices.
In spite of this crushing histor¬
1944-1947
be
our "
drop in the an¬
nual spending rate in this three-
in
Myth
a
short, there will
in
the government
1944,
Here
ness
Spending
Necessity
guard
our
menace
domination,
is
third
lose, the non-de¬
Government
Soviet Union, and
the
of
lion.
I
we
considering
are
year
fiscal
sec¬
ond is that
cannot
own
amount
business that the de¬
The
security,
A
their
on
The
should
made.
billion
$20
spend
to
needs.
"purchasing power" in the com¬
munity will therefore not be re¬
and
real
without
a
than, before
more
over-
effects
will spend $20
than before, but
government
position
a
economic
11
year,
$20
taxpayers will be immediately in
possi-
harmful
a
by
billion less
armaments
that
a
The
reduction
any
of
is
be stated very
can
depends
economy
the
notion
incomes do not spend their entire
incomes.
The
income
that
is
we
hypothetical reduction
,
These effects
Government
the
of
what
cutting defense expenditures
by about $20 billion a year. /
that
any case,
contracts.
sistence
better
and
research
hospitals,
for
reason
low incomes spend their entire in¬
spent
ment.
The second
governmental spending at that
time were far greater then than,
be of
only of the economic
a
reduction in arma¬
Keynes Fiction
after
following year. Nothing of the
happened. ' i
.
discussion
Immediately
Yet the dimensions of the cut in
World War,
there will
be no prolonged
mass
unemployment. States
popular belief concerning indispensahility of government
defense spending is largely attributable to invalid Keynes
theory thinking.
to confine myself to a
second
the
sweeping cancellation
a
war
sort
but that, in line with experience at end of second
I propose
of
end
predicted that unem¬
ployment would reach 8.000,000 by
Agrees
dislocations,
particular temporary
some
the
economists
ex¬
to keep the economy going.
necessary
are
'
that
of
complete myth and product of Russian
a
propaganda the widespread belief that huge government
books
.
Japan surrendered in August 1945,
Magazine
"Newsweek"
of
Thursday, March 21/1957
.
for supposing there will - spend
themselves on the things
prolonged mass unemploy¬ that they want, so creating orders
ment.
The whole theory, in fact, .* and
jobs in other directions to
that defense spending is necessary
compensate
for the
orders
and
for prosperity got a crushing ref- jobs that are lost.
no
The Economic Effects of
By
.
.
things
a
instead additional
year,
new
Old
Country Road.
Form
Pilgrim
been
Pilgrim Securities
Securities,
formed
Rector
engage
with
Inc.,
offices
has
at
19
Street, New York City to
in a securities business.
N. Pinsker
Opens
HEMPSTEAD, N. Y. — N. Pin¬
sker & Co., Inc., is
Conducting a
securities business from offices at
9 Centre Street.
'
•Yojume* 1855622
.
/;
Thq Comwerciaf and FinancialChronicle
w.
'yn?f'. .o
'■>%
i
((1345)'
lfc
riding importance "that past-ex-"reduction in purchases of pro- terms of the underlying economic
rperiences with demobilization- ate Queers ^durable .equipment; during'conditio
likely jta prevailwhen
»
j.
---
roIv.Hmited^-vaiue
anticipating -^the » ifirst*.three; hnarters; of ;f954„ it pcctirs;" The**current sitiiatiori is
the presr other jexpenditoesy; J>articularly, one of general economic strength..
t a .:A," "residential construction state ana Sorhe/arfcas/of the' ecohdmy are
loeal expenditures ana consumer less buoyant, than. Others; but in
:
"ast Experience Not Indicative
outlays, all rose. These increases general demands for goods, servThis wastJUustrated by:the sitii- were reflected in. a reduction in ices and credit remain high. Deation at the end of; World War II, the rate of inventory liquidation ferise expenditures, while an imwhen, military e x p e n d it u r e s and formed the basis for economic portant
compone nt
of total
reached
peak annual rate of expansion in 1955... Vigorous use activity, have contributed little to
.'about $90;billion and accounted of fiscal and monetary policies, the rise in activity since mid-1954.
for two-fifths of "the GroSs Na- including the reduction in per- Some aspects of the defense protional Product. During fQur. years sonal iricqipq.tax rates Ip, J954. aawb vgram, * $pch,. as .stqckpiling
and
of. war, a backlog ot demands and a policy of. active monetary ease, defense
plant. expan§ion,; have
-l
in'
-the effeetiof g cutback at
-«i
eritr time./:
•
:
'
By WILLIAM McCIIESNEY MARTIN, JR.*
Chairman; Board of Governors, Ffedera? Reserve Board
Prefacing presentation of Federal Reserve staff studies on the
possible effects of-drastic disarmament on our economy ;with
-
bis
own. unofficial
views, Chairman Martin opines we can
successfully manage the transition. Staff economists believe
the iihpact of a. 50% cut in defense spending is difficult-to
prognosticate since "past experiences with demobilization are
of limited value in anticipating the effect of a cutback at the
present tune," and that underlying economic conditions and
transition government policies are principal. governing factors;
Recommends policies to ease intact, timely action, and
preservation of public confidence.
1
-
financial
liquidity had accumulated, and when security outlays
were
sharply reduced, total output
goods vand- services declined
only briefly, and the large scale
unemployment ,.;that
many
observers predicted did not develop,
iVIpre closely comparable to the
the
to
been exerting
recovery.
From the second quarter of 1953
Armed
currently
300,000 and nonfarm employment.
fell by almost two million, tinemployment increased from about
1.5 million persoqs, or 2,5% of the
labor force, to about 3.5 million,,
.
^Uertoe«^?flS^e"yeo^itf^rw
S
nnSnnA thft
proposed
,
cutback
in
Forces
by
In the latter part of 1956, there
were about 2.8
•
-
™
of Jan. 7,
1 wo, memoranda prepared- by our
,this reduction in the national sestaff; people at the Board of Govcurity component.amounted to 3%
erriors as informal studies, based< of-the Gross National Product. A
ad- :
dressed
me
riot in myof-
»
I
•
gathered,
in ecor
nomic studies
o r
a
years—
tho ugh 7 of
course*
I' do
not
Be
in
,'/
Cut
^
W.McC.M«rtl«,Jr.
Significance of a, 50%
in Security .Expenditures."
i
e
\
"
ot Armament
.
i,ng letter said that "in order to
nn/iorefon/iinrt
t
Keciuc-
«j!
nnc
r?> ,?«!!
through
t h
of
govern
that
2
w
regulations—to
that
assume
reflect
ko
i
^™ re.V.®ct-accurately
difficulties,
both
aware,
that is a technical and in respect to enproposition that forcement, raise serious doubts
effected/by many un- .whether this can be done.
foreseeable possibilities—the timinr*
At the technical level,: the difare
be
brni iPh t
APt,Ly'
the
v
ahmi
nf/?
at
tIrTrtuJuv*
>
time,
fgf
f
«iphnrf]^^nH
cn
„°fiha„ee°n0^
needs of the
the
d
2
labor force
y lmP°r"
Despite these imponderables, it
to me very worth while to
make certain assumptions, as you
have done, and then to explore
seems
t
similar
budgetary
Perience of domestic agencies in
establishing and enforcing uni-
on
his
state
own
of. mind, his confidence in the
vitality arid adaptability' of our
economic system and institutions,
I am an optimist. Experience of
the not distant past has, I think
demonstrated
the
extraordinary
Capacity of this country to adjust
to
radically different environments—from slack times,
to preparedness, to all-out war, to a
period of postwar transition that
of
bring about the heavy
unemployment that was
universally
feared
and
predicted.
a
Defining
Military
Fundamental
of
for
gov-
arms,
our disposal could, I
believe, add immeasurably to our
standard of living without grave
that
dislocation.
We
mismanage
transitions
could,
af-
our
would
be
capital
►
r
r
tne
from this
initial
i-1-
-
M
review
impact
„i_
J
of
4-1-%
a
of the Senate Committee
Relations, March 7, 1957.---
»
on
-
-
the
in
j
•
in
i
me
j
*
i
past
Foreign
-
a
lines
Continued
iew. years-ut
on
page132
offer to sell nor a solicitation of offers to buy any of these securities.
offering is made only by the Prospectus.
March 20, 1957
New Issue
150,000 Shares
United States Borax & Chemical
i;j.<»■
and
"eral
'f-.'tvt
-t
v
;
A'/
Common Stbck
$1.00 Par Value
Price $45 per
share
Copies of the Prospectus may be
transition.
Statistics.
Reserve
Beard
These
System.
of
obtained from
any
of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
dealers in securities and in which the Prospectus may legally be distributed.
to act as
The First Boston
Corporation
Goldman, Sachs & Co.
Kidder, Peabody & Co.
Merrill Lynch, Pierce, Fenner & Beane
Lehman Brothers
eircum-
Governors, Fed}i - '* ■
--
Blyth & Co., Inc.
2
riais.
may encour-
investment
glong
through tax relief,
military c o n t r a c t s, stockpiling
commitments,
of action
under-,
taken by the Government to ease
these
_
high level economic activity Jhe
additional
supplies* thus made
available have been largely ab-
The
Not
fifst
unaenymg ecouunuc ^lautiuua
accumulation
Memoranda
ment
evident
j
deliveries
of
half of 1955 and one-third the rate
in 1952 and early 1953. Through
Joans and long-term purchase
agreements, the stockpiling prO-
further
•Statem^nts by Chairman Martin and
stances, indeed, «ai'e Of SUCh OVCh*-'
by Federal Reserve Staff di-'
.
liVered before Subcommittee on Disartna- -,
J Prepared by tkc Division of Research
-
Ant
^
economic
over-all
that time, and on the governmental policies adopted during the
transition. Similarly, the impact
of defense cutbacks in the near
future can only be gauged in
This advertisement is neither an
private
age
the
.
,
.
_
bom
declining
significance. In the first half Of
1956 deliveries to the Stockpile
amounted to $145 million, half the
value
.
is
-«
of
socialist
tern, the government
expenditures
in-
The diversion to private consump"tion or other public uses of the
fairs
a
.
strategic materials have also been
in
materials at
prosperity rests upon
definite continuance of vast
so
*"
sumer
purchases declined
omy
siightly; state and local government expenditures increased.
Despite an additional decline of
$7 billion in the annual rate of
national'security outlays and some
Expenditure
differences
great resources of manpower and
that
course,
..
proposal/would compensate for.
the impact of price changes on
the real rate of military outlay.
Military expenditures do not represent an unchanging "package"
of component goods and services,
and
movements
in
individual
prices are likely to diverge widely
—especially where these may be
subjected to various measures of
selective cpntrol.
economies
Being an optimist about our
future, I do not accept the belief
of
It
that
.
.
,
in the
and
capitalist
complicate the
problem of defining military expenditure. Any defense program
i3
concerned
not
merely
with
maintaining armed froces in being
but
with
expanding productive
capacity in defense related industries, transportation, and
power
facilities. Under a capitalist sys-
economic
.
.
Underlying Economic Conditions
a
.
idea of the complexity of
the problems presented.
Price
level fluctuations, moreover, raise
between
t
4
some
methods
Expresses Confidence
ernment
in
orm
accounting
methods
for
regulated
industries
may
give
year to year, as suggested
not
_
„
uriemplov-
part1 reflecting
cant-increase
.
only
but
than 1953.
trie motors; steel, aluminum, et£.,
as compared with 5%/or less for
nondurable goods.
'( ~
Expenditures for stockpiling bf
f
depends largely
.
in
procedures
basic difficulty. It seems unlikely that any simple coefficient
applied to the monetary unit fro n
almost
off,
uring provisions for military exPenditure under a variety of dis-
the possibilities—if not the probabilities. One's view of the future
tide
panding labor market had largely
absorbed, earlier -declines.
Em-
Should not
«n°
,
did
industries was directed to the de*fense effort in the form of output
of ordnance, military aircraft, arid
state and local governments. Part ships, radar, trucks and locomoof the downward adjustment was; tives, and other end-products arid
reflected-in a reduction in hours in, the form of aircraft.parts, elec-
ficulties of identifying aiid"meas-
nr
+k
andnt2/v£/?U
^ ft
leveled
dUnif ment Payments
iecur^telv and t0 n°1
hypothetical
would
decline
not
coine
At the
disposable personal in-
be
can
actualNumerous military expendilevels of
ture.
same time,
the
to
almost
500,000
were
added to the payrolls of the finance and service industries and
.
aoDrooriations
budgetarv
across-the-board cut
of 50%
you
...
in the
however,
goods and services declined about
accounted for this decline.
/i!ni/I
armament reductions
\ j
armaments, I would like to pose
a few questions on the
assumption
that the defense budget was rean
defense
security o^dlays by $4 billion; over
^the same period, total-output Of
j
*»
.
,
l\fSuUn"rtdSfuo?°in periodic budgets
i^P^Uon
eauction in. mental
duced bv
in
ployment was at record levels and
$jo billion. A shift from business unemployment was again low. In
tion Through Budgetary In- inventory accumulation at a rate 1956 unemployment averaged less
spection1
- of $3.1 billion to liquidation at a
than 4% of a labor force of 70
rate exceeding $5 billion largely million persons, 3.5 million more
i
control
'
j.
reduction
.
chairman's very interest-
enmn
billion
spending Would amount to .5% of
prompted by
suggestions the current level or r trie uioss
emanating, from your subcommit- * National' Product.'
One .discusses
"Control ; of
Tn the post-Korean experience,
Armament Reduction Thro ug h the initial defense Cutback-—<lurBudgetary Inspection/' The other, jng the second- half of. 1953*—re-' of work. • ;
-4•
is .entitled /'Comments
on
the dueed the annual rate of national" "7 By rhid-1955;' - however/ an ek-
exploring.
As
$22
-
tee.*
an
expert
these vast fields that you are
nhtain
any
Both
-Economic
profess to
Your
statements.
r
.d ;;
g o o
Board
.
.
estqd
many
as
were}
who
been inter-( "
f
sense
'
as
has v
one
hypothesis andnot in
on your
ficial role but,
men
cal volume of industrial produdtion, as measured "by the Board's
index. This compares with 20%
in early 1953, before the .1953-54
reduction in defense production,
in the Federal Government and] ahd 13% in late. 1954. perhaps 17
in* the railroad and mining in-* or 18%- of total industrial activity
dustries.
In
the
same
period,' in * late ~ 1956 - in durable goods
Occurred after the. Korean War; of the decline;in employment was.
ual and not'nffToSfJSmaoitv
that h^iuf
From mid-1953 through the third concentrated 1 in durable goods
l an off ic al cap
y. .gle that badly, ^
.
.quarter ofl954,thearinuatrateof manufacturingin d us tri e s/but
Y our Chair¬
:
1, wanted to make these -few defense expenditures fell by $11 work forces were also reduced in
man, in his'
cprefatory' remarks in presenting billion from a level of $53 billion; nondurable goods .manufacturing.*
letter to me'
mittee of Cmpt***
million
Armed
Forces compared; with
about 3.5 million in mid-1953. It
is estimated that national security
expenditures; for supplies, equipment and construction had de-
labor .force.
or 5.5% of
^
reduced
were
diminishing pres-
a
sure on resources.
to the third quarter of 1954 the
of
•
!' it
a
contributed
White, Weld & Co.
'
"
Wertheim &Co.
U
The Commercial and Financial Chronicle
(1346)
tive
.
Thursday, March 21, 1957-
in
dynamic. ap<f fast moviag
^TCChiiology * Is
pressing hard upon the Boundaries
of human knowledge has *a spe¬
industries;: where
For Professional Executives
cific
curement.
—to
and
hold and
recruit,
forms
various
appropriately
tions the
scrutinized by Mr. Meiklejohn and explained in terms of
their. implementation in his firm, General Dynamics. Avers
are
opportunities
i'orm
salary is the basic element in all compensation plans; finds
single form of compensation fits all situations and execu¬
(medical
career
need
around
./It
publicly-held corporation—and in
all
Stresses Salary
economic
In order to
They
must provide
the inspiration
scene.
business
enterprise
di¬
rection" and
They
purpose.
deed-
-(make
effective
;sions, estab¬
lish
policies
and
imple¬
ment both.
They
will
in
are
^ s^nse
a
Robert P. Meiklejohn
"hired
men"
m-
e
<
stimulate
exert his
ner
*
addition,
the
executive
each
serve
compensation
tools
twenty
stimulate
and
his
'
<■
.
it
subordinates. To
significant d£-
a
they perform func/ons
gree
ciated
with
t scattered
ownershVy which
share
owners
can
The
asso¬
the
only casually and intermit¬
tently, as in the allocation of the
to
resources
the
productive employment.
tives act in part in
most
in
Execu¬
of
owners; employees,
and
and
on/the
„
,
members
as
of
"entitled"
sion,
the
to
the share
and
I
in¬
important.
fAn
In
respect of
non-
'
'
that
,
'
•
.
t h
."
issue
e
o n,
and
Thus
such
Factors to Consider
.
:
passed into oblivion.
r'C/:i-C;;
who has just as much of an idola-
/
'
These conservatives, big
are saying, but they don't want Eisenhurt.-They don't want his leadership destroyed or
weakened. Apparently they are willing to pay the bill to preserve
either, these conservatives
bower
to
be
Eisenhower's
.
-
Such
'
-v
com¬
i
budget.
Nevertheless,, it .is Eisenhower's budget and they don't like the
opposition that has been stirred up in Congress. Republican mem¬
bers are hearing from them, cautioning that they go slow in the
movement to cut the budget. After all, they don't like the budget
file
it suffices for the company, in de¬ :and
prestige.
•
,
attitude has got the Republicans on
an
Capitol Hill in
a
its compensation • pro¬
gram, to determine with respect
to each type of executive ^
position
whether
the
it
the share
is
the
in
interest
bent be motivated
(as in the
in
lower levels
|
routine tasks
^
of
organization).
executives
frightened
lot of Republican big wheels
a
of Congress.1 Some of therrt" are even taking the tack in
their approach to Republican members of Congress that too much
'
!.
were a partner
in/the en¬
terprise (a^ in the case pf ,those
This has apparently
! outside
-
at
\ *
Democrats/reluctant at first, have jumped into the
budget.cutting business with both feet. They aie seeking to make
an issue, of it against
Eisenhower, a way of deflating him.
j "
•*'
primarily, to act:
leadership.
Now* the
-
of those engaged > <
case
relatively
the
accomplishment for the Republican party'as such, something ditV
simply ah employee
were
Secretary of
Secondly, from
ferent and aside from.the Eisenhower personal
r
of
that therfneum-
owners
'
.
people demanding it.
Treasury Humphrey's statements there was reason to believe Eisenhower wouldn't-mind it and it seemed a good way to develop an
veloping
family situation,.
General
,
pensation is most usefully lookdd ■■C pickle/ It .was-with them that-the budget cutting movement origi:
on as an incentive to
performance, -nated. In the first place they were getting a lot of mail from rank
they are cau¬
budget cutting-may bring on a slumps; Be careful,
Let's,not walk into a Democratic trap.*
•
.
tioning.
discharging major *'
":-*As it stands
now,
*
-
pretty much of the whole Congress seems
corporate responsibilties, and in! "
bent-upon cutting the budget. . Economy is in the air:- And it does
a
position to influence;* profits: Took as if the movement
may take on something of the color of a
industrial, organization
an
as
times, critical of him, have
that he would present such a
.
of
,
On the basis that executive
execu¬
development,
long-range
d d i t i
retorted.
Republicans in Congress who now want to cut the budget are
As if he
-
address
American
a
undoubtedly would have been had I
"business men, bankers, don't like the. budget which Mr. Eisenhower,
has .presented to Congress. They are. tremendously disappointed
r
their
by Mr. Meiklejohn before
Management Association's
General Management Conference, Los An¬
geles, Calif.
the
In
Carlisle Bargeron
and
of mob.
midst
running into the wariness of this crowd.
/
properly belong to
owners.
submit
As if he
resources
financial motivation is recognized
as
and
they chorused
in the
feeling of the Roosevelt idolators was that he could do
wrong and woe be it to anyone who criticized him.
Famous
per¬
profes¬
a
participation, jnrfbo
a
which
profits
status
member of
a
to
or
partner, and professional man, and
with his character, age, financial
a
profession animated by a professi on a 1 code in which immediate
Self-interest is not the dominant
consideration, and in which
growth
was
big business men, a lot of conservatives who have come to be, fol¬
lowing-Eisenhower, middle, of the roaders.
;
/
-
payroll
therefore, they contend, is not
quisites of
to
e^e
anvonp
company
its
followed by
of
tively influence the executive to
act in the way desired by the com¬
pany vary in each of his capaci-,
ties as employee, employer, leader,
the
act
the
in
■
me,
-
lik<*
amounts, forms and timing of com¬
pensation which will most effec¬
share
general public,
management itself.
In part,
executives
its
objectives.
customers, the
government,
the
encourage
;•'/
upon
on groupds of principle
^/ trous following as did Roosevelt except'that-it is somewhat of a
by those who believe that the' ex¬ -( different kind.- It includes not so much of the rank and file that
ecutive is in fact a hired employee
Roosevelt had but it has a lot of them—and then it has bankers,
and its immediate and
quasi-judicial
in reconciling the ofteh
a
capacity, as
conflicting claims
to
;
-
questioned
tives vary with the functions each
performs, his level in the organi¬
zation, the nature of the company's
business, the stage it has reached
per¬
form
corporate
that
attitudes
seeks
I
;
reactionary."
writers of the
*of
v
'
throng
a
.The
.
no
•
;
-
that I
appeared
violence.
,
ployed by the share owners to per¬ terests of the owners. Although whether executives are or are not y
"entitled" to forms Of comnensaform assigned tasks at a "price"
non-financial
considerations
are
established by the market supply
important., the compensation]plan Gojt, other than salary is beside the
of and demand for the
required as the most direct and most pdwer-*;^1! ^ the development and in
power¬
■' talent.
tfe*inrfilicatidn of a compensation
ful single t^>l
They are themselves
pvailableri'or ex~' program.
plovers with respect to their owifi ei'ting this stimulus.
; A
,
■
in
"Don't you worry about that,
executive- compensation /"Such was"the period.
other than straight salary has been ■;
;
NoWiwe have Eisenhower
forms
In the midst
that year
on one of
of
through
Standing
turned
woman
damned
you
.
man¬
the
A
-
♦
use
campaign
came
cars.
about ten others.
;
;
"• ;
more
or
all of that gas."
.
attitudes
•'
•
watching the parade go by I remarked quietly
to my companion:
"I wonder where they get
are
which recognize the roles
Great
the
the
his, censored inspection, trips. The narade of
politicians which met him. at the train and
accompanied him to the war plants numbered
;
-
executives.
The propriety of making*
company
best efforts in the
which will best
all
and
and actions.
must create-an environment which
In
tives.
situations
guide
recruiting
and
holding executives, a compensa¬
tion program must provide levels
of,compensation which are com¬
petitive in the market for the ex¬
ecutive talents -required.
It must
also
incorporate\ just, well-rea¬
soned
and
internally consistent
gradations in compensation within
the enterprise itself. But it is not
enough to recruit and hold execu¬
the
give
an
•
that the corporate executive plays
in addition to that of "hired man,"
and the complex of motives which
Incentive
as
plans. 5
therefore, that
needed
for
instrument
leadership
that
serve
-Roosevelt
salary/ insur¬
and retirement
other
complex role in the
a
more
Although salary is the basic', ele¬
/
ment in all compensation
plans,
and reputations, if not
their fortunes, they share with the
owners the risks of enterprise.
particular top management execu¬
tives—play
careers
a
war
Presidential
the
since
1944, I was in Phila¬
and with everybody
being gas, tire and food rationed.
for
of*
by
:
■
delphia,.. during the
oppor¬
also
-
.'•*■'•'■On;one occasion, in
- follows,
no
single form of compensationrfits
situation.
,
attracted
are
built
gram
ance
own
is
,
Roosevelt.-
of
conservative compensation pro¬
programs,
to
and
There
who
men
leadership which we have been mostly experiencing
! great depression. First there was the idolatry
well
tunities.
Advises allowing executive
select, within limits, forms of compensation most attractive
him in light of his character, age, financial and family
Executives in the modern large,
career
on
job offers dynamic
vacations, club membership, etc.).
to
stake-his
to
Without claiming to be a
psychologist or psychiatrist or any¬
thing of the sort, I do feel capable of making the observation that
some
interesting results are, coming from the cult of personal
organization requires Indi¬
as chiefs, and not every
every
and critiques non-salary forms of compensation:
supplemental (bonus, profit sharing, incentive, stock-optionpurchase-gift), protective (retirement, disability, death), de¬
and "perquisites"
*•
his ability tefpersuperior fashion.*T But,
in
ans as
tives;
compensation,
of executive with
type
the
of
By CARLISLE BARGERON
able, aggressive and im¬
anxious
even
no
ferred
Ahead
in its key devel¬
the aspirations of the" traditional
entrepreneur who is willing and
executives—
Washington
programs ~ to
aginative
of compensation
motivate
v&
by incentive-
opment, production and sales posi¬
General Dynamics Corporation
procurement
From
"V.
pro¬
seeks
attract and hold
Vice-President, Administrative Research,
Executive
It
executive
compensation
type
By ROBERT 1*. MEIKLEJOHN*
of
problem
-
.
Dynamics Corp.
-
'?
:
significantly).
which,, throughout 1 its Canadair,
Convair, Electric < Bo^t, General
Atomic, Stromberg - Carlson and
Electro Dynamic Divisions, is ac-
Or
in
professional
a
other
or
paeity.
Then
type
having
types
or
determined
of
repudiation of Eisenhower.
ca-*
motivation
r..' -I,.
*
'
/
*
;
.
I
■
■
that, I can't see how any harm could be
done because he is President for four more years. But the pressure
Even if it should "be
"
,"
the
of business and banker influences
upon
the individual Republican
re¬
members of Congress not to let Eisenhower suffer any setback,
quired, the company should adopt,
c
regardless of what the cost may be, can bring about a situation,
to
the
extent
administrative!v,
where the Republicans will be fighting against budget cutting to;
practicable, the form or!forms.of
preserve the; Eisenhower influence^ It is a shame that this should
compensation appropriate in each
-/be so. The present Budget Director is Mr^Brundage. His two pre¬
.
Drugs
the Market
on
ever
drug stocks.
to
I hanks
to
1 hanks
our
before
an
seeni
endless
interested
span.
Thanks
primary justification
company viewpoint for
from
in
gradually expanding
currently make markets in—or find markets
our
inventory,
to
of
matter
to
if
Shulton, Inc.
Lakeside Laboratories, Inc.
Smith, Kline & French
such
Stuart
advantage
executives
to
.act
interests
seeking
Brundage is apparently not of their stubborn, streak. That is all
that is involved.* If the budget is cut, Mr. Eisenhower will still be
President
But -it is
'
t
••
v
-
Joins Goodbody S^aff
primary justification from
-
current
quotes,
-
DETROIT, Mich.—Mrs. Elfrieda
Merrill
70
Clark
Goodbody & Co., Penobscot Build¬
staff
ing.
to
that executives
such
instead,
Lynch, Pierce, Fenner
privileges.
on
more
NEW YORK 5, N. Y.
.
Offices in 108 Cities
realistic
necessary
that
the-talents
for the exercise* of top
r e s p o n s i b i li t y a re
management
Continued,
the
staff
of
ert
—
Rob¬
N.; De Young .has joined the
With H. W. Schmidt Co.
of
De
Young-Tornga
Co.,
on
King & Co. Adds
consid¬
'
page
(Special to The Financial Chronicle)
.(Special to The Financial Chronicle)
"
fact
has-joined
"entitled"
are
It is founded,
erations:
First—The
PINE STREET
Beane
Mich.
McKay Tower.
not
Trading Department
..
(Special to The Financial Chronicle (
GRAND RAPIDS,
compensation adapted in form and
just call
,
Joins De Young-Tornga
(Special to-THS Financial Chronicle)
y
timing to the individual's ngeds is
For
.
by
owners
the company viewpoint for
giving
to top executives
very substantial
Company
..
commentary on something that we have influences
in this country who are willing to pay the bill to keep Mr. Eisen¬
hower at the top of his personal power.
: t
a
.
as
he has
and. saved from the spending tendency which
unintentionally developed.
of the executives with thosfe of the
The
of
pressure
directly
the financial interests
were
Hughes, successfully withstood the
this and that appropriation.
Mr.
decessors, Messrs. Dodge and
as
right but rather that
motivate
they
associating
Strong, Cobb & Co.
G. D. Searle
interest
an
owners.
Lilly (Eli) & Co.
interest .in"
it is to the shareowner's
for stocks like—
Baxter Laboratories
ownership
an
"entitled"
plans.
a
That's why we've been
the
the enterprise to top management
executives
is
not that they
are
to
the growing importance of health and medical insurance
' »•'
the
giving
parade of miracle drugs.
steadily increasing life
./
Thus
More investors than
instance.
DETROIT, Mich..— Harvey
Morse
W.
28 ing*
is
now
Schmidt
Avenue.
&
connected
C6.;
.
17319
H.
with
H.
Wyom¬
4
-r
~
GRAND RAPIDS,
ert E. Jones has been
staff of
i o'o'n
u
King &
INTntiOnnl
#
Mich. —Rob¬
added to the
Company, Mich-
Rnnk
RtiilHitlff.
-
Volume
Number
185
5622 /.
The Commercial and Financial Chronicle
.
t
(1347)
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rp
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the effectiveness of research, but an i.
measure
;
/
'
: :
;'r one-sixth of our sales and an even greater percentage of our
//
.?• 53
"i
*It is difficult to
indication of its importance to our company is that in 1956 about
profits
~
from products
came
we
did not make five
years
ago."
v-t.
-?
-
■
•;
'••. v.
TV:" :i"
—Allegheny Ludlum
—
Annual Report, 1956
i
**
r.
<
REPORT
IN
BRIEF
1956
1955
Bales and Revenues...7. /V;. 7v>./ $287,078,952
Depreciation and Amortization. /,
-"Federal Income Taxes...... ;//..
Net
$255,587,054
11,337,277
/.
U0,861,722
•
16,867,000
Earnings/.
..
Earnings per Share of Common
■*-" Stocks
(After Preferred Divi-
16,554,000
15,261,090
•'
»
...
-
14,985,660
1
n.
"
*
t
'
1
-
.
'
/•'
-
dends).
.
.
.
.
...
t...7.
$4.04
■
.....
$4'12*
Ratio of Net Earnings to Sales
*
and Revenues...
5.32%
5.86%
6,382,144
$ /4,030,086
.
.Dividends, Common Stock..../.
$
/,
•.
'
Dividends per
Common Share.;
$1.70
Working Capital at December 31.
61,760,622
Long-Term Debt
39,609,900
f
Stockholders' Investment
...!
;■
•
48,721,490
>
30,276,000
:
.
101,074,081' :: 90,849,921
(Net Worth)...........//;.
Net Worth per
$1.17*
Common Share.
$26.73
Capital Expenditures............
16,280,000
<7
$24.41*
.
7,297,000
-a
*2
x
Stock Outstanding at December 31
'
t
Common.............
Preferred
.
Number of
-
.><■.
\.........
Employees at
;
v /»
*..
W
i
;
r
'A
*
40,572f
1
"
'
/'
\
/i<:
.v
;/
Att*
1
15,994
Number of Common Stockholders
>•
^
3,781,667' V-, 3,555,412*.
'
-
y~
,
; /*,
December 31..
.
'
f
at December 31. /.
k
*
1
'
14,778 ->f
18,462
.......
'
M
■
14,950
*Adjusted for two-for-one stock split of January 6,1956/
fRedeemed or converted by January 16,1956. .
"- >
For your copy
-
of
of the 1956 Annual Report,
Allegheny Ludlum Steel Corporation,
write to
Allegheny Ludlum Steel Corpora¬
tion, Oliver Building, Pittsburgh 22, Pa.
common
SUMMARY: The year 1956 brought to Allegheny
Ludlum
;
new
and challenging
high alloy steels and special metals.
' "*■
-
-
,
established stainless and electrical
steels continued to widen the markets for these products.
Titanium and zirconium processing are increasing very
rapidly; Our new vacuum melted alloys have also met
applications for
debentures made possible repay¬
some
prepayment on long term
Capital outlays continue high—Expenditures on new facilities
expand output of our products were stepped up in X956.
Planning to meet future sales indicates the need for con¬
tinuing large capital outlays in 1957 and later years.
'
new
new
loans,
loans, and added to working capital.
'
;Expanding markets. and products—A variety of important
.
stock. Sale of
ment of short-term
opportunities in the field of
to
our
enthusiastic demand.
Intensified research—The extent to which new metallurgical
Capacity operations—These expanding requirements for
improvements have already affected the company's prod¬
ucts, alloys and processing is considered only an indication
our
products taxed finishing capacity throughout the year.
Despite the five weeks' strike, sales reached a new high.
Completions of additional production equipment will make
possible greater output in 1957.
\
of the
dynamic future impact expected from greatly ex¬
panded research and centralization of research activities
in 1957.
^
Three-year employee agreements—The company reached
"
Earnings maintained—Higher material costs and labor cost
resulting from the wage settlement in mid-year
increases
agreement in August with the employees' unions,
forced
certain wage
price increases for our products. Despite strike losses,
earnings
dends
were
were
granting
increases and other employee benefits. The
agreement provides a firm basis for sound employee rela¬
higher than those of the previous year. Divi¬
the final quarter,
tionships during the next two and a half years.
increased to 50^ per share in
thereby giving stockholders a return on the earnings rein¬
vested by the company in recent years.
-'
Promising outlook—Despite easing of demand for certain
products, first quarter 1957 results should be good. Backlogs
are still substantial, although lead time for many products
Financial position
strengthened—Steps taken early; in the
year to strengthen the company's financial position included
conversion of preferred stock and a two-for-one split of the
is short.
It is
expected that 1957 may better the results
of 1956.
H. G. BATCHELLER
ALLEGHENY
LUDLUM
E. J. HANLEY
Chairman
President
STEEL
CORPORATION
OLIVER BUILDING, PITTSBURGH 22, PA.
STAINLESS
★
ELECTRICAL
*
TOOL
AND
DIE
STEELS
*
HIGH
TEMPERATURE
ALLOYS
*
SPECIAL METALS
16
The Commercial and Financial Chronicle
(1343)
"norm" of 10-times
earnings.
Eastern, along with the other
lines, is seeking a fare hike
THE MARKET... AND YOU
which could also
brighten up
approved.
its 1957 results if
STREETE
By WALLACE
"iffy" Gas Transmission
Stocks
session
idled
in
the
session
middle
Nibbles at the
after
of
the
Agricultural
Equipments
1957
trading ..range without
real conviction this week.
There
also
^
4
Gas
nies
transmission
another
are
compa¬
"iffy'.,!
prop¬
nib¬
some
equipment business, the
com¬
unit
that
handles
the
new
pany
today has diversified
markedly, to where its nom
500-stock average to measure
the stock market. Profit rose
railroad business last year ac¬
sharply
backlog
counted for
nearly two-thirds
of sales. It is important in the
road building and earth mov¬
ing machinery field and, for
dash of romance, is
getting
entrenched in the electronic
a
osition, their fate tied to pos¬
bling among the agricultural sible Congressional action to "brain" field,
including one
dip in steel opera- equipment issues which have ease some of the heavy regu¬
tions restrained sentiment been
neglected for the most latory chains that weigh on
and there was still no sign of for a handful of
years as farm this industry; The uncertaintyany spring upsurge in auto prices declined steadily. Last has
kept an issue like United
sales
to
hearten
investors
year
there-was at. least a Gas
Corp. remarkably re-~
Winchester»
dubious about this segment of
Electronics,
Inc.
pause in the downdrift and strained despite a good ap¬
which
presently operates plants
the economy.
the possibility of a reversal to preciation
in earnings last in the three Connecticut towns of
>■
«
❖
*
the trend focussed attention year. And even without
any Winsted, Norwalk and New Milford has announced plans to
In short, the market saw no on this group. There are in help from
open
Washington, United a
plant at Danielson in a plant
reason, to
the group some rarities like is one of the
encourage either
companies being formerly occupied
by Connecti¬
the bulls or the bears and de¬ Oliver which is selling below projected to even h i
g her cut Mills. It is anticipated that
voted j the major time to a its asset value to bring back
employment at the new plant will
earnings this year. Any new
backing and filling operation. the phrase forgotten in the legislation to ease the burden gradually rise to 200 persons. The
company
manufactures precision
The lack of interest was pin¬ last half dozen years of com¬ would v be that much
more
electronic components for the air¬
pointed by a decline in vol¬ panies "worth more dead than help; in revising the projec¬ craft industry.
ume to the slowest
tions upward.
pace since alive."
any
was
Thursday, March 21, 1957
...
last
the
appreciably.
up
But marketwise the issue has
been far from
distinguished.
[The
views
article
time
do
expressed
hot
this
at
any
with
of
the
those
presented
are
those of the author
as
in
necessarily
coincide
"ChronicleThey
A further
and
year
is
only.]
"
v*
♦
A'
A
x'
»
an increase in the author¬
ized number of shares of Common
prove
'
to
3,500,000 to permit the present
offering and provide stock for fu¬
*
IV •"
*
•
last
October, when
election doldrums
the -pre¬
had
A False
The
most
the
er¬
as
issue
one
encouraging
as¬
that
was
rather
another
to
flow
good
but
of
a
new
orders to the leaders, with the
industrials, in particular,
emphasis pronounced on mis¬
were
lolling much closer to sile work, pointed up the fact
the top of the 455-475 range
that they have a really tre¬
that
has
was
held
some
stagnation
the opinion
bolstering
that
for
now
weeks. This
seven
the technical
bear
ket
mar¬
signal given more than a
month ago was a false one. A
similar
bear
signal
false
several
mendous
orders
backlog of unfilled
without
even
new
as¬
signments. One tabulation of
a
couple of dozen companies
with fat
backlogs that are all
higher than they were a year
proved ago showed about half ^ of
ago
so them to be issues in the plane
years
is
another
favorite that has had
old
static
a
ratic as other major groups as market
life. This despite a
hopes and fears switch from seeming change for the better
Signal?
pect of the stalemate
Woolworth
been
Aircrafts have
taken
the field.
over
if
if
there is precedent for doubt¬
group.
ing the infallibility of such
signals.
in its fortunes. The stock held
the
was
fact
that
sulted in
sales
climbing to
record with
new
a
moderate
a
improvement
in profit. Also
ignored was the fact that its
largq interest in its British
subsidiary is carried at a book
actual value.
Prospects
process
revamped
the
tenth the
a
On the basis of
sion
plans
trimmed
*
❖
A
haven't
been
appreciably and,, in
fact, point to
this year, are
record outlay
a
the main props
that
pretty much guarantee
high level operations through
1957
United Air Lines which, like
the
if
r
expansion naturally could be
back
cut
below
present pro¬
jections but it is interesting
that
a
joint study of the Se¬
curities &
sion
Exchange Commis¬
and
the
Commerce
Department of
of
last
tual expenditures
in
1%
the
of
year's
came
exactly
business
ac¬
with¬
matching
projections
at
the start of the
year.
if
if
even
market
per
and
with¬
and-stock
basis
in
effect
t h
reports
favorable
the
in¬
dustry that the price of the
metal
was
reflected
the
occasional
demand for these issues.
moment
home
its
stock has
entry
been
including
again
paint
this
any
overpriced
market
occasional
an
the list of
on
aopearance
week.
It
picture of
- in
the
and
for
an
doesn't
issue
an
current
approval
fare
a
lows,
new
of
will
tious
be
offset
consider¬
market sentiment
a
has
10
its
with
points
leader in
a
be
in
nearly
some
third of
a
the
the
a
14-
Milford
trim
in
little
28
the stock.
/
'
•*
•;
if
-if
.'•■■■-
■
pinch,
Corporation
ware
,
formed
that
being
are
have
been
in¬
discussions
with
Kwikset
merger
held
Locks, Inc. of Anaheim, Califor¬
nia.
The
possible merger would
accomplished through issuance
be
to
stockholders
stock
of
of American
The
*
if
annual
IIart
&
pany
shows
report
of
net
120,000 square feet,
providing inside, loading area for
reflect
paid
52
As part
Com¬
income
$3,473,055
of
Arrow-
Electric
that
to
of
if
Hegeman
creased
Kwikset
Hardware.
in¬
$5.79
or
prominently.
last
level
past
year
on
a
Its
net
reached
an
a
increase
dollar
a
An
profit
record
of
well
share.
But
ing, the stock
was
those not
selling at the
even
if
among
issue
if
of the expan¬
sion program the company has or¬
dered
110
diesel
tractors, each
with
30rton
a
capacity.
combination
gross
Present
facilities
clude
19 terminals and
truck
units.
Gross
in¬
nearly 900
revenues
in
estimated at
1956 and
are
Kell
Strom
-
if
Tool
Company,
.
established
equipment, has
-35-hour
a
standard
work week for its
100 employees.
Any additional hours worked will
time
at
and
half
a
rates.
a
presently
week
operating 50
expected to
and
week in the
future.
if
the
offering of Common
through rights to stock¬
Power
Company
will
at
be
the
offered
to
em¬
stockholders
price of
The company has
$16.50
a
if
in
Bridgeport
311,557
provides
the
New
areas,
shares
Title
Building
securities
to
in
been
Land
in
engage
-business.
Re¬
—
has
the
Officers
that
the middle of its
trading
range,
hovered
own
Elkins
Wetherill,
Treasurer.
with
Both
Secretary
were
and
formerly
Elkins, Morris, Stokes & Co.
North American
Planning
BOSTON, Mass.—North Ameri¬
Planning Corporation of New
England has been formed with
can
in
gage
ner
E.
a
to
despite
is
principal.
a
A. C. Kingsriter
Opens
MINNEAPOLIS, Minn. —Arvid
C.
Kingsriter
is
conducting
is
Westinghouse
Once
treme
dependent
on
the
Air
to
Brake.
an
ex¬
cyclical railroad
a
securities business from offices at
910
Elliot
Avenue,
South.
J. V. Nash
its
Main
formerly with Cal¬
vert & Canfield.
to
and
Richard Harrison Adds
offer
(Special to The Financial Chronicle)
Common
of
the
W.
Swanston
will be asked at the
an¬
the
staff
on
offices at 306
was
electric
a
Stockholders
on
Opens
ROOSEVELT, Okla.—Joseph V.
is engaging in a securities
March 20 to ap-
SACRAMENTO,
of
has
Calif.—Gerald
been
Richard
added
A.
to
Harrison,
Inc., 2200 Sixteenth Street.
""IT
New Haven
pros¬
pects of good business ahead,
en¬
securities business. Sum¬
Britton
in
private
a
are
Michael M. White, President, and
for
meeting
Co.
offices
one
basis.
company
Statistical
with
Street. He
Com¬
Haven
plans
of
Stock to stockholders
eight
&
business from
it
Illuminating
which
pany,
service
em¬
Nash
if
United
2,411
PHILADELPHIA, Pa.
share.
a
total of about
employees.
The
and
sub¬
scription
2,800
had
company
stockholders
Research & Statistical Co.
96.2%
was
for, leaving a balance
of 34,946 shares remaining.
It is
expected that the
unsubscribed
ployees
income
ployees.
subscribed
shares
the
year-end
6,496
holders of The Connecticut Light
and
dividend
Net
offices at 40 Central Street
if
The recent
Stock
stock
1957.
equity in uncon¬
foreign subsidiaries
amounting to $303,000 in 1956. At
is
a
or
solidated
The
plant which is located in Wethersis
$2,588,788
year earlier, with
figures adjusted to
20%
Jan. 21,
formed
which manufactures aircraft fools
and electronic test
be
the
search
if
a
both per share
$15 million this
if
share
a
from
were
about $13 million
over
1956
Primary Markets in ■ ** 1 CHAS. W. SCRANTON & CO.
ifMembers New York Stock Exchange
if
a
does not include
trucks.
$4.31
in
additional
pressure to absorb.
Eastern Air Lines stands out
V. "
Stockholders of American Hard¬
felt
was
at
will offi¬
cially request permission to offer
floor jarea
nual
position where it
have
March
oh
share
discounted,
Radiator
a
predic¬
decline of
well
so
to
would
a
dire
With
American
maintained
the
or
value.
if
of
American
heeded
tions
between
on
A public hearing
the Connecticut
Utilities
Turnpike and the proposed Con¬
necticut Turnpike. It will include
two
buildings with a combined
municipal
Radiator which is
drastically.
if
case
and
projects.
servicing the building trades
could
boost
school
building
its
levelling off despite this impressive show¬
in
lining to
is
this
located
by
e
were
and
economy
over.
before.
be
if
phase of the
it
at
will
increase to 55 hours
that has little silver
Public
'
Waterbury, Connec¬
Orange terminal will
the largest in tne coun¬
tract
near
Obviously, all this was no ably by commercial and in¬
help marketwise and the dustrial building and ambi¬
if
growing conviction in the
was
took
trimmed
profits desoite the cost
company
Building Outlook
held
which time the
company
The
be among
field
building which is rather gen¬
erally regarded as certain for
payments to cash- a decline this year because of
from the higher all
tight money primarily. But
dividend
For
highly selective. Cop¬
generally
red
One
last
Air
plans
in¬
terminals at Orange,
be
Hartford and
hours
Home
if
United
chilled
turned
is close to 6%,
high order for a
a
high-grade issue.
change both the outlook and building
in the various
groups
sentiment
if
of
company
cash
is
Bleak
fell below expectations
The
bid
if
Spotty earnings
fare
a
action,
which
the out¬
comes,
the cost squeeze
as
on
transport
expansion
new
value
bright.
if
Profits
if
Company expenditures
one
look will be
year
if
air
is in need of
groups,
boost. If
despite soft spots here
and there.
other
ket
transport busi¬
year.
book
figure, this
couple of speculative sit¬
The record size of the Fed¬ uations that are hinged on subsidiary returned a thump¬
ing 30 % in dividends last
eral budget, and of
govern¬ government action were able
year" Woolworth's own yield,
mental budgets
to step into the limelight oc¬
generally, and
because of its desultory mar¬
the
fact!that business expan¬ casionally. One such was
*
cluding
acre
management thinking re¬
value of less than
Air Lines'
announced
try and
Shrugged off in the
motor
a
extending from upper New
England to North Carolina, has
below average.
if
-
,
ness
ticut.
if
if
Adley Express Company, which
operates
in a range of only
eight points
last year, which is distinctly
if
if
financing.
will
t
„
if
if
ture
New York
Hartford
—
—
REctor 2-9377
JAckson
7-2669
Teletype NH 194
Number 5822
Volume 185
..
.
The Commercial and Financial Chronicle
17
(1349)
•s
JoinBunting Jains
Reed, Lear & Co.
.
PITTSBURGH, Pa.—Reed, Lear
Co., Grant Building, members
of the New York Stock Exchange,
&
Of a
Municipal
Bond Depart¬
have announced the opening
ment* under
the
manage¬
ment of John
B* Bunting.
With
new
the
inte¬
grated set-up,
the firm plans
to
become
much
f
in
ible
into
stock
common
to
company
of
ports
construction program.
Pacific has constructed and is now
Mexico, Arizona1 and for* delivery
placing in operation a new natural
gas
pipeline - aggregating
1,482
miles extending from New Mex¬
George W.
Cooper and William H. Griesedieck
ico, where it has substantial nat-
have become associated with
natufal. gas over its own
6,790 mile pipeline system for sale
to customers in west Texas, New
the
at
April
and including
El. Paso Natural Gas Co. trans- Pipeline's
-
the
Arizona-California
•
bouri-
30, 1967 at the rate of three shares
dary
of
in California and Arizona. At Dec.
facilities,
31, 1956, the certificated delivery
capacity of the company's main
Canadian
Washington,
transmission lines
was
billion
of
stock for one share of
common
$5
convertible
second
preferred
stock.
Net proceeds
the
from the sale of
preferred stock
cumulative
the convertible second pre¬
ferred shares will be used by El
Paso Natural Gas Co. to enlarge
to
distributing
cubic
feet
companies
2 With
about
2%
in
natural
gas
been
the
fall
of
York
per
line
dated
repay
at least $25,000,000 of bank
its
and
Corp., which on Jan. 31, 1957,
a subsidiary of El Paso
Gas, for use in Pacific
months
subsidiaries
ended
Oct.
-
Lynch
(Special to The Financial Chronicle)
CINCINNATI,
consoli¬
had
Holwadel
operating
revenues •
of
$215,496,955 and consolidated net
income of $25,904,333.
loans incurred in. connection with ^became
its construction program.
Natural
is
Ohio —Kent F.
with
Merrill Lynch,
»
Pierce,
Fenner
&
Beane,
Terminal Building.
the
actual under- ;
writing of, as
well
John
the
as
distribution
B. Bunting
of,
all types
municipal bonds; school, water,
of
and parking authority
Although specializing in
obligations of Pennsylvania au¬
thorities, they will be equipped to
sewer,
bonds.
underwrite
nue
and
distribute
auto
reve¬
types of municipal
certain other states.
all
in
bonds
and
Bunting, Reed, Lear's new
Mr.
New U.S.
municipal manager, was until re¬
cently a partner in the municipal
underwriting firm of Thackara,
Grant & Co. of Philadelphia and
York. While with them he
the program and pro-
New
superthroughway system gives motoring
a new
dimension
handled
Washington, D. C.
t u s work for Hagerstown,
Md.-Washington County combined
spec
—The
big news in
highways is (1) the
$13,800,000 bond issues. He is cur¬
rently handling the field Work for
setting up the financing to cover
the construction of
a
complete
$2,600,000 water supply system for
the City of Rockville, Md., this
being a joint venture with Reed,
Lear and Thackara, Grant & Co.
Mr. Bunting has been engaged
in the underwriting and distribu¬
tion of municipal bonds and par¬
ticularly various types of Pennsylvania Municipal Authority
Bonds since the late 1930's. His
experience has included the set¬
ting up, undgfiwriting, .and dis¬
tribution* of numerous bond issues
in
Western* Pennsylvania as well*
other parts; of the state. Among
these were the original $5,000,000
controlled-access
throughway, made
pleasantly famil¬
so
iar. to the interstate
pikes
Authority, two
programs
for
the
White Oak
Borough Authority, and the last
issue of the Latrobe, Pa., Water
Authority
and
Lower
Indiana
County Water Authority.
Falls
Municipal
Bunting's
education
in¬
Civil Engineering back¬
Mr.
cludes
a
ground.
He served
for 10 years
units of Gen¬
Motors Corp. prior to enter¬
with various factory
eral
ing the investment banking busi¬
ness.
by
turn¬
Florida,
in
Pennsylvania, Ohio and other states;
and
the
(2)
Federal-Aid
Highway
Act of 1956.
With
well
construction
work
already
underway, this far-reaching legis¬
lation will
eventually make available
40,000 miles of controUed-aecess,
some
toll-free
as
Revenue Bond Issue of the Beaver
motorist
Alfred E. Johnson
highways from coast?
coast.
Maybe 40,000 miles doesn't sound
like much
the
when stacked
miles
3,366,000
that thread
streets
Act
the
against
and
up
roads
of
S.
U.
(The
really calls for 41,000 mile£, and
that too may
But,
Alfred E. Johnson,
says
tive secretary
ation
be increased.)
Highway Officials,
highway linkage
is perhaps the most important addi¬
tion to transportation ease and safety
this controlled-access
in the
history of the automobile.
It should
greatly increase long dis¬
tance travel via the automobile. Yet
White, Weld Group
Offers El Paso Nat.
one-third
a
reduction
in
project. Some 50 billion dollars
will
finally be spent
highway
accidents is confidently forecast.
road
building, and millions of addi¬
tional tons will be used in construc¬
tion
equipment.
A tentative breakdown of the blue¬
White, Weld & Co., as manager
of an investment banking syndi¬
cate is - underwriting a total of
450,000 shares of El Paso Natural
Gas Co. preferred stock, consist¬
5.68%
series
of
1957
(par value $100
per
share) and 300,000 shares of $5
convertible
second
preferred
stock, series- of 1957
(no par
ing of 158,000 shares of
cumulative preferred stock,
value),
of the 5.68%
preferred stock was
made on TVtarch 19 at $100 per
plus
accrued dividends
share,
'from
March
1, 1957. El Paso
Natural Gas Co. is offering to
holders of its common stock rights
to subscribe for the 300,000 shares
-
Public
offering
cumulative
convertible second preferred
of $5
stock,
$100
one
at a
subscription price of
ner share, on the - basis of
share of the new preferred
each 56 shares of com¬
held of record March 18,
Rights to subscribe will ex¬
stock for*
mon
1957
Ends
"This program," says
"is
it
designed to
over
jnove
traffic. To
vast distances with
pi armed efficiency that
tionize
ups
Mr. Johnson,
a
may
move
new,
a
revolu¬
motoring. Instead of the slow-
constantly encountered
ventional'
highways
traffic, these
new
and
on
'con¬
urban
in
sweeparounds and
bypasses will greatly facilitate the
flow of
lights,
stop signs, slow zones. It practically
eliminates the hazards
intersections. It is
new
U. S.
at
Weirton, West Virginia, and Hanna
Furnace at
bile manufacturers.
or elevated to speed
through traffic, plus
26,000 miles of multi-lane controlled-
of
pace
throughways.
tremendous
and
continuing
gain in automobile ownership is the
basis for the prediction that 70 million
cars will
be using our highways in
1965* This factor and the annual 2%
increase
in
S.
U.
population have
by the engi¬
been taken into account
neers
who
network
designing the new road
that on its completion in
are
so
1972 it will
provide not only for
rent but future
All of this will further consolidate
position
as an
out¬
right necessity with American families
—for vacationing, business, pleasure.
ever
National's Role
safer, stronger,
Our
National Steel
more
economical
constant
ter and
better steel for still greater
safety, strength and
cars
economy
and trucks of today
in the
and tomorrow.
SEVEN GREAT DIVISIONS
WELDED. INTO ONE COMPLETE
STEEL-MAKING STRUCTURE
Groat Lakes Steel
Steel Company •
Corporation
*
Weirton
Stran-Steel Corporation
Company
•
•
National Steel
Product* Company • The Hanna Furnace
Corporation
We at
-
goal—through
research and cooperation with the
automobile industry—is to make bet¬
cars.
Hanna Iron Ore
expected that this
■
Through the skilled engineering and
manufacturing of the automobile in¬
dustry, this nation each year enjoys
cur¬
highway needs.
of traffic at
network, will carry 15 % of total
National Steel, through three of its
major divisions—Great Lakes Steel
at Detroit, Michigan, Weirton Steel
the
the automobile's
motoring.
"It ends the bother of traffic
great contribution of the auto¬
either depressed
as
access
Slowups, Other Hazards
the
mobile to the health and prosperity
of our people and our nation. Because
Buffalo, New York—is an
important supplier of the iron and
steels, made to the most modern
standards, that are used by automo¬
it now stands: 7,000 miles of
2-lane highways in isolated areas, plus
7,000 miles of urban expressways
print
The
Gas Preferred Shares
it. Some 49
million tons of steel will be used in
execu¬
of the American Associ¬
State
of
the
on
»
National Mines Corporation
take pride in
traffic, though it represents only
1.2% of total U. S. road mileage. And
it will ultimately carry 20 to
25% of
the total traffic!"
Some 900,000
people will work on
Ex¬
'
Joins Merrill
31, 1956, El Paso Natural Gas Co.
the capacity of its system, and to
$15,000,000 of the pro¬
ceeds from the financing will be
loaned to Pacific Northwest Pipe¬
12
Stock
to
and
the
Midwest
1957,
authorized
For
and
changes.
commencing
Pacific has
import large
quantities of Canadian gas.
day.
Up to
/
Dempsey-Tegeler;& Co., 1000 Lo¬
cust Street, members of the New
a
terminus at the
Border
in
western
to
where,
(Special to Tax Financial Chionicl*)
ST. LOUIS, Mo.
ural gas reserVes and production
•
Dempsey-Tegeler
more
active
pire at 3:30 P. E,{ (EST), on
April 2, 1957.
T
"
"
The new $5 convertible second
preferred stock will1 be- convert-
NATIONAL STEEL
GRANT BUILDING
CORPORATION
PITTSBURGH, PA.
Dixie
The Commercial and Financial Chronicle
18
is
It
SINCLAIR WEEKS*
Secretary of Commerce
}
"
gress and
against
17%.
X
V X
,X*X
f
...
It is
;
is
v
At the start of the new Congress
it
is
Administration,
re-elected
a
fitting time to take our
bearings and chart our course. So
a
let's study
of
some
lessons
of
re¬
frankly
few
a
call
to
-
shall
to do
out
try
competition with private industry
—we checked fast-rising inflation
with¬
so
reflecting
narrow
payroll than business¬
'.XV-' -X X-.x
sharp contrast and often with
,
petitive enterprise and free labor
we
removed strait f jacket
controls—we reduced government
"hot
potatoes."
I
greatest
the
tisanship and
by giving full
Weeks
gaining— we checked monopoly
helped small business by en¬
forcing anti-trust laws—we estab¬
lished new programs to promote
and
credit to those
Democrats
kept government's hand off
scales in collective bar¬
—we
par¬
in
the
nation, who believe in sound prin¬
ciples and support the President.
Congress
and
The "New Dealism" Charge
Now let's tackle the first con¬
troversial
"hot potato"
—
New
;
Right here I should like to say
word
those
to
friends
old
.
,.
as-you-build taxes
,
°my.
Let
:
me
ask
every woman
on
the gasoline
something brand new, dreamed up
recently—as some folks think—by
to re-
—
Executive, fleet a minute: are you a member
Legislative and Judicial—actually -of any group which is pressing
less than a dime in every dollar for projects that will expand the
appropriated.
'
Federal budget? Is your husband? f
•*I' repeat
with grim' emphasis If you are, consider well whether
that Americans, living under- the your activity.. in - this respect is -
of government
awful
shadow
bomb, must
A
.
dimes
enriched
these
XT'
sub-
mnrA
.the"
in
weapons
in
Party
its
has been concerned
KepuDiican recora ot a
century clearly proves that all
through our history our party has
<
+
provided sound government serv-
ices'to loster:"the well-being'of
farmers, workers,;' businessmen,
-
it take*
Republican
welfare. In fact, it was born to
fight for freedom—and still does.
The " ;ReDublicah
record
of
a
V
"live, wire"
science, x iect is meeting modern needs
few years back—which must be. children and others and to meet
solved soon or.we and the coming future national needs.-,,
?ener^*°n could face ^stagnation
The Lincoln Administration
a
mnnnv
buvtheabsolute^esSial
to
new
another
The
with human freedom and human
^
haVeX3 ^ ,S ®
S
/
neeas, v
X*'Complicated life in an urban
also
havo
in' industnal society and the rapid
burden of'na-'progress of science ereate many
"
1 serious problems — undreamed of
heavv
vear
"
finest hours,
civilian- life
tional defense
Fverv
the Presidency, Abraham Lincoln.
Meeting Modern Needs
still
..
.
-
.,
_
X
^
of mod-
while
modern
the
.-y
; - X
-.
,
maverick .stargazers, It is as old
as the principles of the first successful Republican candidate for
invention
and
innovations
created
right or wrong.
money to
alive.j
paradox
that
is
technology
hydrogen
lot of
pay a
disturbing
ern
the
of
free and stay
remain
field. of
*n. 9HJ.
condltlons*.X'
guided missiles, atomic forces and
and other critical, founded the Department of Agri-
X.
' X ;
' .culture , and initiated the first
Progress in an electronic-atomic Homestead Act, which gave land
tax cut in history—paid install¬
The old B-29 bomber plane cost
age ls one of
corner stones of to farm families who would work
ments
on
the public debt—bal¬
$693,000; our current B-o2 bomber
Eisenhower Republican pro- it. Republicans passed the Sheranced the budget twice—and plan
costs $8 million. Suppose a necesgram•
: .'X ' Xx'X.' '
man Anti-Trust Act to protect
to do it again this time. And we
sary
household expense jumped » To meet modern needs, pro-i ®ma" business against monopoly,
other ultra-modern
world trade—we made the greatest
material. X
war
One example will suffice:
X*.
-
•
>
,
making progress
with the
recommendations of the Hoover
are
Dealism.
•
.
grants to states.
Xvv*;X9.7% are earmarked for all the
rest
climate favorable to private com¬
Ai Smith used
is not cheap.
peace
—
ties in
which
topics,
thanks to sound legislation—the
f*rst maj°r project of its kind that
*s entirely self-liquidating. Pay-
the other fellow's
.
help of members of both par¬
the Congress we created a
the
controversial
«Cut
says
benefit, but don't touch mine."
.
and meet a
In
one
This problem can be readily ap-
that
••
.
and spending to keep
wars
history, its cost does not appear
in the budget. Instead of passing
aIong debts for our children to
we
have undertaken
g0t very far in reversing the trend
government spending if every—
security—payment'■ of
out of future wars. The price of
us
prosperity in all history.
We rejected the alien theory of
nurse-maid; government,
wnicn
men.
national
highgreatin all
eral service which he wants and
the reply is a loud"no." We'll not
v
x;
security and
distant bureaucrats
know better how to run business
discuss
and
a
to produce the
economy
claims
the
events
cent
freed
thereby
and
as nowr "•
K every section, every segment, an(j 0ys of highway users are foot^ery pressure group succeeds in ing the
Not a mile of road
predated by showing where the-fraDt>lng more and
me tlJ~ is laid until the money to pay for
budget dollar goes: rlt'"
"
tu'V • etCu0I,0!"y c,m d
it is in the Treasury.
X? ;
62.6% of expenditures are ear- under the .increasing weight of
... ,
..
marked directly for national sei-»
But, if, on the other hand,
Modern Republicanism ... | :
curity, including defense and aid the aroused people of the ..United*
jn conclusion, let us size up
to our free nation partners. —
States rise up and demand greater , Modern Republicanism
about
27.7% are earmarked for inter- economy, in. Federal, as well as which there is so much interesting
est on the national debt, veterans
local and state appropriations,
today.
; - v. X
1
;
peacetime benefits, agricultural supports and then they wl11 ffet £reater econModern Republicanism is not
party
^
and
road accident slaughter
-
Then suggest stopping some Fed-
'
fact that the chief reason
<i
former
philosophy in modern_dress. Mr.
Weeks' attributes budget's size to payment of former and cur-*
rent national defense, and to keeping pace with population
growth and increasing complexities of advancing economic
standards. As a percent of GNP, shows budgetary cost is now
down to 16-17% as against previous 20%.
Appeals for
restraint on part of all and not just some.
traditional
the
as
the public.
.
rncf
Vigorously denying charges that "the Eisenhower program is
'just like the New Deal'," Commerce Secretary defends the
-Republican administration in terming "Modern Republicanism
,
Thursday, March 21, 1957
.
Branch, the Con---had such traffic bottlenecks and
Executive
the
budgfet,
for the curient size of the budget
i
.
the Gross Na- X' Ask most anyone today if he1
Although the President's
tional Product, was 20%, it has favors
reducing the cost of gov- way program is by far the
now ' gone
down to about -16 , or ernment and the reply is "yes." est public works program
*
By HONORABLE
the
in * 1953
measured
Back to Abraham Lincoln
IJr
nevertheless,.that
fact,
a
whereas
Republicanism Goes
Modem
jf
.
(1350)
Commission.
j
in
£° insure workers rights RepubsJafted the Bureau of Labor
have 'been
designed for
problem that would create. Jbighways, peaceful uses of atomic
from $6.93 to $80, can you
what
a
imagine'
grams
which later became the Depart-
famijiyj btidget? Yet that is energy, ..water resources," power
The disposal of the government's;
the compara%v#e increase in just'- development," St. Lawrence Seacomplaining that'
Labor, Republicans essmelter
in*;,Texas,
its synthetic one
program is "just
type bf modern airplane.
X
way,X flood control, soil bank, Xabhshed the merit system through
rubber plants and the liquidation
like the New* Deal."
If we are .ever to escape from
widened opportunities 'for small
vivn Service Act of 1883.
?
of the RFC and its former activi¬
the increasing burden of military
Obviously, this just isn't so, pe¬
business, a transport policy aimed
Republicans protected family
ties,
plus the release
of cash
riod.
expense, we must concentrate our
at cheaper transportation and a health through the passage of the
previously held for working capi¬ utmost efforts in
How short are some memories.
easing world four-year emergency program of Pure,Food and Drug Act and the
tal for these programs, have re¬
How blind are some eyes. If the
tensions, in making friends among Federal cooperation with states in Meat Inspection Act. Republicans
sulted in a return to the U. S.'
Eisenhower program really is a
the nations, in spreading interna-,overcoming the critical shortage in 1912 established the Children's
Treasury of more than one billion
tional good will and in bringing
repeat performance of the New
of sehool-roOms.X
'
■
?
Bureau after the passage, of child
dollars. That's the kind of benefit
a
Deal, why is it that old line New
just and lasting peace to this
Although there may be some labor laws in many
the
public
receives
when this
Dealers and a new crop of leftwar-cursed generation.
differences of opinion about some states,-=
;X ' *
X
Administration
gets government
wingers are fighting that program
I say — what I believe is the re of these items, they are aimed at;
The Panama Canal was built to
a
a
hear
sometimes
the
we
^
Eisenhower
;
Republican
^
If it is
;
X
■.
why did the last Republican Na¬
tional Convention
rock-ribbed
—
representing
from
Republicans
state in the Union—endorse
every
different
are
New
actions
in
spirit from
practices of its
Deal
the
pre¬
Court,
mills
seize
draft
strikers
and
Army.
.
The
steel
the
into
the
,
record
clearly proves the
sharp contrast between our Mid¬
dle
-
of
-
the
-
Road
and the New
—
filled regulatory
agencies with members hostile to
private enterprise—tried to make
electric power a Federal monop¬
oly — used the tax system to
change the social order — encour¬
aged the squandering of tax funds
harassed honest business
the
sound
—
recovery
re¬
of
agriculture — set class against
class
played politics with civil
—
rights — treated spy hunts as "red
herrings" and some of whose lead¬
ers even condoned corruption.
Let those who grumble that we
are
New Dealish point out
in what
way the following great popular
accomplishments
of the Eisen¬
hower Administration
are
a
sec¬
ond edition of the New Deal?
We rejected the
osophy
based
despairing phil¬
prosperity must be
war boom. We stopped
that
on a
the agony and slaughter in Korea
*An
address
Women's
by Mr. Weeks before the
ReouMican Club, New
National
York City,
and
a
day
new
wave
of confidence lifted this
nation to unprecedented heights of
prosperity because of his inspired
leadership.
X
- ; *
That which this Administration
is
doing today is a projection of
the Republican record of the past
four years and is in keeping with
the
1956
Republican
campaign
promises.
.
March 9, 1957.
Dwight D.
high,
so
Budget
X-X/.'i
price of survival is
dare
we
substance.
If
we
not
waste
to
are
Now
let's
tackle
second
a
,
hot
•• -•
of
gram
was
designed
out the Republican pro¬
prosperity
peace,
and
progress.
In
protecting jthe safety of those who
create
jobs tor the growing :iurnpeople, we. must do
better job in reducing the drain
ber of young
a
X
of taxes
to
present the whole
truth about the budget, let us tell
the public some of the facts which
critics fail to mention.
some
<
V*
-
.
•
.
ckm'iiri
liUa
mj
the
onlo'
hu™
^ tui?
to that
reteience
.
portion
It
is
a
fact, based
the latest
on
went up 22.8%.
It
has
is
a
fact
grown
that
more
our
than
population
million
11
in the last four years—that in the
same
period
our
Gross
National
of T911—^intro-
Act
of
is
one
of the most dif¬
ficult aspects of the budget problem. In turn, the temptation on
their
reoresentatives
vote
for
in
money to
Concn-ess
be spenMd
their districts is almost irresistible.
And, just so no
one
will think I'm
trying to let the Executive Branch
off too lightly, let me admit that
in my opinion we in the Executive
Branch
record
If
improve
can
in
this
regard.
If
we
future,
upon • our
slow-moving .-vertical
do not get
and
individual
home owners. These latter prQtec-
against
^ions
adversity -were in-
itiated in the- Administration of
ready now to
the* airways
of
the-your honored guest, that
the . toll of > tomorrow's humanitarian—President
-
ap
^
¬
To
forestall
President
Curtis,
an
such
a
life-long
Herbert
Hoover.
crack-lips' and collisions could be
hazard, the
X Just New Dress
;
Republican policies today are
the
expression- of' our
party's
appointed- Edward P.
outstanding expert, to
great
century-old -Princip 1 es,
recommend a long-range solution. - dressed: in the clothing of this
k the inteiim the Civil Aeronau—. current age.,
^
!
Administration of the ComSo we are to keeping with a
mer^e Department ls^embarked on century of Republican accomplishSreatest air ~ sa^ety pr°gram. raents for the American people,
history and is providing air when ?Republicans • insist that
navigational, aids such as radars, "Government must have a heart
electronic devices and other safe as weR as a head."
air traffic controls. But this is
w
lg
in harmony with
costing
money
times the bill in
ever
credit banks was
and,, the Home 'Loan
Bank System was created to assist
Appalling
-
Fi-
dangerous in the years .organized
-
nearly
three
our .
,
going to be able
to tighten the tap on public spendwe
Rppnnstruction
..
..
safeguard
and different
expansion
.
Latei
nance
-
H1
path of commercial and military
jets, traveling at breathless speed,
a^m^s^ insatiable demand
ices and the continued
*
f
being handled now: But it could -Gf agricultural
f
groups
T
iet ase
.
fliftht helicopters cross the slanted individual- farm
-r f
people for new government serv.-
.
.
grow more
.%*ahead' as
budget
of different
:
,
,
,
is
X 07.7 Per Cent Residual
to
comparative figures, that while
Federal expenditures went down
13.2%, state and local spending
Week's
tne Keconstruction^i? i
Corporation; was .estabAiJeady tlie highways of t e ljshed; fhe Federal Land Banks
sky face congestion. The situation *Were strengthened; a new system
flv wmv,and jn the
:
'
of the old
order
the
■
new
1958, to finance national security
carry
water* and timber resources was
k
r
to
conservation measures to preserve
•-
;
-
•
-
X01* e?a'np,e'j
°T\ Dei duced in Congress by my father,
IXX- XXt "rf8?':Pai'tment, is lodged the-duty, of when he was a Representative,
plant and equipment.*mat
.
and other services. It
; •
X-•':,
provide
(27,7%) which * goes
interest, ■. veterans'
benefits,
potato—the budget. It provides for for
the expenditures of $71.ft billion agricultural
supports,, grants .to
between next July 1 and June 30, ■.states, etc.'., V
.•
<. ;
X
.*
Offers Illustration
our
the orivate savinas to Droduce.(he
T
*
1958
The
omy.
•
X'
,
Eisenhower.
Because the
♦.
Administration
agriculture
tarded
out
'v....XV -'XXX-
Deal, which fostered
socialized medicine and socialized
—
went
dawned.
decessors, who tried to pack the
Supreme
:
-
m
Deal
A
Administration's
part of this particular pro¬
a
gram.
that program?
This
meet future needs. Under President .Theodore Roosevelt,' programs also were launched to conscrvs the nation s foiosts, minerals
and water resources. One of the
sponse of every woman — that no
helping to create valuable private
man
on
earth is working harder ,*and public assets and at meeting
.'V ;
•
and doing more to bring this era of
the
requirements of a growing
Yes, when President Eisenhower
peaee
than our great President, population and "a growing econwas inaugurated in 1953, the New
only
New Deal carbon copy,
a
have cited
out of business—and I
tooth and nail?
53.
-
are
.
One
of-the-great
current
-
and
our
1956
Platform,
with
and in
ia step
Republican President
line, with the overwhelming ma-
future heeds which we are trying jority of American citizens, when
and that our national income in¬
to meet at the-Bureau-of Public: we support programs reflecting a
creased $40 billion. Obviously the
Roads of the Commerce. Depart—hard head,, a warm heart and a
Federal Government must expand
ment is modern highwaysX Had far-seeing eye. J-■1
some functions to keep pace with' grants
to states and pork barrel public demandS hot been neglect- '
Let .us go home with- renewed
this tremendous growth.- ^ ■ expenditures. By all of us, I mean ed so long, we might , not have faith that Republican policies are
Product
rose more
than $49
billion
ing, all of us must throw; our
weight against the mounting pressure, year after year, to swell-sperial favors, subsidies, pet projects,
Volume
Number 5622
185
.
The Commercial and Financial Chronicle
.
.
(1351)
f
balance
helping to encourage a healthy
and growing economy with pros¬
perity widely shared and are help¬
ing to advance peace, justice and
freedom. Let usr by our attitude
on public issues, prove worthy of
the
trust
have
the
American
placed in
bur
great
in
Dwight
Eisenhower.
."
series due March
bonds, 4%«
terest, to
J™
won
Canada —The
a
-
was
parent
im-
Toronto
t
A
sociation
s
sale
and
members
electricity
of
al?d municipalities in those states
Power
in
serves
Tennessee.
/
The
Ohio
versary
in
Street^ firm in
Midwest
Stock
CLEVELAND," Ohio—Edwin
Beane,
1917
the
Exchange,
40th
founding
the
to Byrne
as successor
which
Anni¬
of
was
formed!
1905.
:
firm
presently
including
;
has
James
Sr.f founder
firm,
of
11
F.
the
maintains
and
five offices, of which two are in
New
York.
located
in
Other
branches
are
Detroit
and
Chicago,
Asbury Park.
Avenue, Northeast.
theTion.of 1,766,000.
the
Stock
predecessor
S.
are
Superior
216
4 of
partners,
with Merrill Lynch, Pierce,
now
120 Broad¬
McDonnell,
Mullett and David L. Upshaw
an
York
McDonnell
&
Lynch
Co.,
celebrating
in
estimated popula- Tenner' &
an
the
High
New
are
(Special to The Financial Chronicle)
.
company
communities
;1,227
of
North
Two With Merrill
el€ctrlc- energy at wholesale - to
American
and
the
Anniversary
&
the
N.
The
other electric utility companies
program, -
with
•
New York City, members of
way,
Exchange.
tory in West Virginia and Vir£m:1> ..and in the supplying of
the
Electric
40th
Ohio —John
now
i
-
tne
most success-
ful
-
eanital
made by
is
.Company, 51
public in extensive terri-
bank vloans^:-in- area having
prepay
/
the
Co., will be used -and
Appalachian
construction
to
•
cash
organization,
Electric
-
to
tribution.
19
V
a
be
to
by
Bond.
Traders'
with
.Co.,
the
of
&
Gas
portant factor in making the 25th
Anniversary
Dinner
COLUMBUS,
V
net
(Special to The Financial Chronicle)
t
f.engaged in the generation, dis.
issue
proceeds from the'finane-
contribution
in-
an
Net
th,
the
March
on
bid of 100.58%.
int? 'together
out-of-town
of
attendance
nf
of
award
competitive sale
and
Appalachian Electric Power Co.,
d 4.55%. The underyield 4.55%. The under¬
at
Highly Successful
number
prices
Holscher
1,
$95,625,633
$15,680,171.
With Ohio Co.
and
par,
to
was
McDonnell
ranSihg from 101.23% to par, plus
and accrued in-
1987, at 101.22%
on
.
income
■
25th Annual Dinner
.guests in
amounted
"
.
McDonnell Celebrates
the
' ■: '
' /
•.
bonds will be redeem¬
J
new
Electric operating revenues of
Company in the year 1956
V
proper¬
receding from 105.85% to
at
special
redemption
$29,000,000 of Appalachian
-c
writers
.creased
The
for
improve¬
pay
able at regular redemption prices
Electric Power Co. first mortgage
Toronto Bond Traders
TORONTO,
ties*../ *■*<>'
&
to
and
,
offered
D.
Stuart
used
be
the (Company's
to
*
Co., Inc., as
manager of an underwriting syn-t
dicate
yesterday.
(March
20)
Halsey,
additions
ments
Offers
people
party and
our
President,
Halsey, Stuart Group
Utility Bonds
will
further
19
:
record..
on
.(A .pictorial
.account of the '
event will
ap-'
/jnvthe
.pear
^Chronible'l of £
.March 28).
In
-
,his address of;
.
.welcome:, tox.,
over-flow
the
;gatherin
"
Cecil
President
Cecil
W.
Midland
'-is
McBride
W.
g,
>
■
;
\
•
Director,- of
Corpn. •» Lim-
McBride,
Securities
.
ited, cited the contribution made
by the organization toward the
well-being of, the Canadian investment business as a whole, and
.
.out
that
Metropolitan
enjoys the distinction of
pointed
Toronto
-"being the fastest growing community on the North .American
*
continent."
lows:.
.
V,
>
;
;
Mr. McBride remarked as fol-
%
f•,
;
/,,
:■
..
%■'
"On behalf of the Toronto Bond
Association
Traders'
I
extend
a
:*y'
cordial greeting to all of our
guests who are-here
to. attend the Association's 25th.
Anniversary Dinner and sincerely
very
"out-of-town
their
that
hope
will
stay
in Toronto
be; pleasant.
;
;;
.
"Metropolitan Toronto is now
the fastest growing community on
the North American continent with
population of over 1,700,000 and
that with the completion of the St. Lawrence Sea¬
'a
'
it is expected
:
-way,
City over the next 10 •
will
continue its rapid,
our
; years
growth both in terms of popula¬
tion and industry.
The" Toronto *
.'
;
Bond
Traders'
*
Association
was
-
formed in 1932 to establish a code *
ethics
of
and ,fair
business
Interpreting the theme
prac-
—stability through planned
T tice among the Investment houses
in
-'
«■
:10O investment
firms
Char-r;
and
'tered Banks and is steadily grow-
ten-year
;
that it has rendered good service
'
the
to
*
business
Investment
whole
and
I
am
sure
as
signifies the delicate
balance management
J believe
Association's; existence,
record of sales and rentals,
The scale
v
C ing.» During the 25 years of the
;
-
1
expansion—ourdesigner ?
illustrates Ihe AMF„Insignia atop
a solid cube, together with our
Toronto;
The membership of
the Association now includes over*r
.*
the essentials of
must maintain in
intelligent forward planning.
Figures in chart are in thousands of dollars.
a
that in the'
'
to, come the Toronto Bond *•
years
1
Traders' Association will continue-
'
and serve the Investment»
to grow
'industry in Toronto."
\
John William Smart
John
William
Record Growth Year
AMF
;
Smart, President
Record 95% increase in net income after taxes and
-of
4.',..*
4
Smart, Clowes & Oswald, Inc.,
Louisville, Ky^, passed away suddenly March. 13 at the age of 74.*
confirms
[
Mr. Smart .came .to Louisville in
1918 as a representative of the
National Citv Bank of New York.
an
S
Sales & Rentals-$198,058,000
i
;
*
;
success
increase of
of
*
i
'
~
preferred dividends
"
*
■
"stability through planned expansion" program.
$53,057,000-
: V
,
varied, but the over-all
'
.
/
ily increased.
;
We will
profit has stead¬
be
pleased to send
of the Annual Report.
you a copy
'
——
^ Later he
was
Manager of the bond
-37% over 1955
We believe that 1957 will he a
*
department of the Louisville Na1
tional
Bank, was Manager of the.
Net income
(after taxes and preferred
for the
year
Company and we hope to estab¬
lish further
dividends) —$8,621,000
good
department
{ Lyons & Co., and
ager
,
was
of
W.
L.
local Man-
a n
increase of S i,213,000
new
records for sales,
ren¬
|
(Special to The Financial Chronicle)
..
f
.
the
—95% over 1955
for Otis & Co.
With Midland Sees.
KANSAS CITY, Mo.—Frank C.
Westbrook, Jr.. js now with Midland Securities Co.,
timpre
Avenue.'.He
Inc.,. 1016 Bal-.
was
formerly
King & Johnson.
with Dewey,
cut
of
depend-...
the profits of any one segment
operations. This is a great advan¬
upon
our
in assuring continuity of earnings
rapidly changing markets
and Technological .product changes. In
earnings. We fully expect that
next 10 years will witness not only
Madison Ave., New York
16, N. Y.
I
gins. No effort will be spared to achieve
I city
these
goals.
v
-
I
AMF —Creators
one.
and
.State.
Producers
-
of
t Atomic, Electronic and Mechanical
in this time of
the sources of our profit have
I
Address,
I
I
•
Chairman of
More head Patterson
tied Board and President
|
-!!
Name
growth in our sales and rentals but con¬
tinued improvement in our profit mar¬
tage
each year
201
tals and
-
Today, our income is no longer
'
I
Machine & Foundry Company j
Executive Offices, AMF Bldg., Rm. 638 I |
| American
•
investment
—-T4
| Mr. C. J. Johnson, Secretary
| Equipment, for the Consumer, Industry
j and Defense. .
I
J
I
I
I
The Commercial and Financial Chronicle
,
in
News About Banks
NEW BRANCHES
the
Washington
Office here, said Mr. Gold¬
stein
Bankers
and
OFFICERS, ETC.
will
also
S.
.
Thursday, March 21, 1957
.
He joined Manufacturers Trust
Company in 1941, and was ap¬
>
pointed an Assistant Secretary in
1948.
■;.
■
the men who spear¬
movement for this
President, he lived in New
announced
Helm, Chairman.
York,
July 3, 1819, the first bank
for savings—
were
from real estate ofiicer to
vanced
Sheehy, from Assistant Secre¬
tary to Assistant Vice-President;
Frederick W. Turner,
from As¬
Assistant
Melville
E.
Vice-President;
Ambler and John G. Riddell, from
and
Bank
Officers,
and
Officers
Trust
the
banked
total of $2,807.
a
of the first
end
the
year
1,527 accounts with de¬
bank had
Tyler
Baldwin
G.
:
C. Lar-
York, appointed Randolph
Assistant
and
Secretary
as
sen
New
if
G.
The Board of Directors of Cen¬
privately owned New York City
Real Estate.
This loan was for
$10,000 secured by a mortgage on
the store and lot at No. 136 Front
Street,
with
Pine,
of
corner
value of $20,000.
special loan of $60,000 made
earlier by the bank to
the Public School Society of New
York was the first mortgage loan
A
six
years
York, was announced
16
by John Adikes,
March
identified with all of
major activities.
Harris w as named Vice-
H.
R.
Chairman of the Board.
with Central National for
was
has
years,
President
in
served
charge
Trust
recently
porate
most
Mr. Har¬
as
Vice-
as
Cor¬
the
of
Department
and
Chairman of the
by
in¬
creased its common capital stock
from $835,000
to $860,050 by a
stock dividend, and from $860,050
Hicksvilie,
York
New
dents
W.
were
E.
Caldwell,
Jr.,
C. Knight and
Frederick Lynch, Jr.
E. L. Carpenter, A.
Committee.
A
banker with
experience, he has
40
been
Cashier at Central National;
years
in
Vice-President
branch
the
of
charge
and since 1949,
the City Division of
Commerical Banking Depart¬
the
elected
been
Chamberlin
G.
Assistant
an
has
in
a
mortgage.
For
century the bank's
a
record of successful experience as
pioneer with real estate loans in
city has been a source of great
benefit and safety to its depos¬
itors. Alfred S. Mills, President of
The Bank for Savings, reports its
a
the
record of uninterrupted
dividends
paid to depositors is
138
He
York.
over
year
in
officer
bank
operations.
in
He
the
joined
since
and
1928
of
charge
has
1947
directed the activities of the Ohio
Division of the Commercial Bank¬
in
joined the Bank
He ha<$ a
senior
Bank
Trust
dollar which is departed Officer of the Marine Midland
savings bahk*
!W Trust Company of Central New
of every
been -Vicemercial banking background be¬
President in charge of the Bank's
fore serving as Chief Clerk in the
Trust Department since 1949. As¬
Trust Department, a position he
has held since 1949.
*
Frank
P.
formerly
Gage,
York, has
New
since
asso¬
of
appointed
been
in
a
1919,
services.
trust
-
.
formertor Manager at Calcutta, as
director of
Vice-President at the First Na¬
personnel since joining the bank
tional Bank of Jersey City, Kings¬ in
1950, and was elected a Vicebury S. Nickerson, President, an- ; President in 1955.
/
nou need.
Mr. F. J. Blake, director of pub¬
Mr. Gage assumes his new post
lic relations and advertising, was
Asgjbtant Cashier in the Over¬
seas
lH^ision. Robert C. Para¬
opment program.
He has been
active in banking since 1926, when
unequalled in the state.
*
if
.
if
The First National
City Bank of
appoint¬
New York announces the
ment
of
L.
Kenmore
Emerson,
an
half
dise
been appointed an Assist¬
ant; Cdfchier in the Special Indus¬
tries Group of the Domestic Di¬
vision.
*
'
with
he
the
joined
Irving
Trust
Company,
New
announced
on
March 18
Peter
D.
devel¬
Manufacturers
the
of New York.
Company
He left the
latter institution
'
in
Street
Broad
Vice-
Crawford,
Trust
Company,
Philadelphia,
of its 14th and newest
Office at Academy Gardens, Willits
and
Exeter
Roads, Holmesburg, Philadelphia, on March 21.
office
son
the
57th
at
Bank's
Street
branch
and
Madi¬
Avenue.
this
Crawford formerly headed
office from its opening in
1950
until
Mr.
1955
when he
was
to
active in the Bank's
he has been
loaning
has
activities.
with
been
Crawford
Irving since
Mr.
the
♦
special meetings
of
the
Manufacturers
of
New
Company,
nounced
York,
an¬
Flanigan,
Horace C.
by
Trust
was.
of
one
new
field
over
30
years
ago
and
former Pacific Bank of New York.
He
has
and
share
been
or
ever
associated
since,
with
either directly
through accounting,
new
busi¬
each
the
exchsnge will be
re¬
shares
share
of
Tradesmen's
on
share
a
for
basis.
Goldstein
ecutive
as
of
Harold
Assistant
to the
Vice-President
of
A.
Ex¬
the
Washington Trust Office of West¬
Pennsylvania
McKeesport,
on
March
capital
mon
to
$250,000
15.
its
increased
com¬
stock from $150,000
by the sale of new
effective March 6.
shares, par value $100.)
Pa.,
Stockholders
Fletcher
receive
of
(2,500
Belleville National
announced
Savings Bank.
*
of consol-
At the effective date
A mew
*
*
branch of The Canadian
idation, the consolidated bank will' Bank of Commerce, Toronto, Can.
have capital stock of $500,000,
into
vided
di-
opened
was
40,000 shares of comof the par value ot
stock
mon
March 18 in Nas-
on
Bahamas.
The branch will
provide a complete banking servsau,
$12.50 each; surplus of $1,050,000;
undivided profits, including
ice
ests
capital reserves, of not less than
$400,833.
;
;
i
Cruickshank,
boro National Bank,
increased
was
$200,000
to
if
if
if,
First
increased
Wis.
Neenah,
Bank
its
*
title
to
its
ef-
Bank
stock
The management of the new
.
Chairman,
following
Sibley,
the
that
C.
entrusted
be
to
Paramaribo Office will for
Th
anpro-
b®'lldinJg und|r
;office
had been made.
motions
of¬
Mfc\
will
th™^re^U{nt0£
Company of Georgia, Atlanta, Ga.
A.
India Ltd.
of
.
fice
The Board of Directors of Trust
John
a
On April 1 a new office of the
-Hollandsche Bank, Amsterdam,
-Holland wj 11 be opened at ParaSurinam.
of Sioux /
was
(6,000 shares, par value $100.)
nounced
have
1948.
increased
from $300,000 to, $600,000 by the
sale of new stock, effective March
8.
concerns
Bank
National
the
25.
Iowa
Both
decision.
entire share capital of Grindlays
Bank Ltd. has been owned by the
National Bank of India Ltd. since
The Toy National Bank
City,
.
Bank,
changed
State
Wadena
fective Feb.
and of Grindlays Bank
having been founded in 1863 and
Grindlays Bank Ltd. in 1828/ The
State
has
•
•
of the
long history in overseas banking,
*
County
Minn,
Wadena,
;
•
value $20.)
par
*
A.
Assistant
amalgamated. They have accordingly taken preliminary steps
to give effect to this unanimous
com--
stock effective March
new
(25,000 shares
)•.*
if
of/be
capital stock from $300,000 to
$400,000 by a stock dividend and
from $400,000 to $500,000 by the
5.
,
London, Eng. have decided
it is in the interest of both banks
that the two institutions should
mon
sale of
former ;
Ltd.,
-
National
interH.
D.
National Bank of India Ltd., Lonr
don, Eng.
$100).
The
tourists.
for
Boards of Directors
The
$300,000 by a stock dividend ef¬
fective March 8. (3,000 shares, par
value
and
it
Hiilsboro, III.
from
business
Canadian
for
Manager of the London,, Eng.,
branch, is Manager of/the* new
office.
V
■
//,:-/
i
'
By a stock dividend, the common
capital stock of The Hills
/.
which is
In the
Banking Department, the
following were elected Vice-Presidents:
A.
C.
Hannon,
Garnett
construction
expected to be com-
now
pieted in the autumn of the current
year,
Wood, Joel B. Kersey, Robert H.
Carl Marks ft Co.
S. Evans, and W. R.
Robertson.
Mr. Robertson is in
charge of the bank's West Peach-
In New Location
tree Office.
The
named:
were
George
& Company, Inc.,
S.. 0ne of the largest and most active
Robert dealers in international securities,
McNair and J.
Wallace Winborne, Jr.
,
Reynolds
promoted
were
Trust Officers.
in
the
Bond
announced
street's
new
the removal of
of Wall
buildings at 20 Broad
to. street. For the past 20 years, the
firm has been located at 50 Broad
Jere Dodd was named Assistant
Secretary
today
their offices to the latest
•
Raymond A. Boyer and William
E.
Marks
Carl
Fred
Lamb,
T.
C. A.
Strickland,
Vice-
Assistant
following
Presidents
Hill,
street.
'
' ./.■•
During
Depart-
the 32 years that the
; firm
has been in business, it has
Elected
Assistant
Treasurers worked directly or indirectly with
were Lyndon A. Harris, Robert S.:aimost every foreign government
DeBorde, A. F. Bullard, Jr. and with an external dollar debt. The
Bradley Currey, Jr.
firm has also represented and ad*
*
*
vised many of the large inter-
ment.
:
National Bank of Mobile, Ala. was
national companies in financial
matters, especially in questions of
Cashier
repatriation. Many of the theories
C.
James
Bank
&
Trust
Ind. will
Indianapolis,
rights
subscribe
to
First
of the
Andress
from
advanced
Assistant
established in connection with the
rules and regulations governing
Manager of the bond depart- foreign
exchange and blocked
ment; and William H. Sadler, Jr.,; currencies
are
said to
have
was
promoted
from
Assistant originated within the walls of
and Manager
ment
of the bond depart-
Assistant
to
Vice-President
,
Cashier
Assistant
to
for
tal stock in the ratio of
Mr.
Andress, who came with the
in
came
1934, was named AssistHe be-'
1950.
Assistant Cashier and Man-
ager
bond
of the
1952.
department in
j
Mr. Sadler
joined the First Na¬
tional staff in 1929 and
an
was
made
Assistant Cashier in 1947.
addi¬
one
Vice-Presi-
dent.
bank
American
the
National
Company,
♦
•
*
their offices.
They cover
share
for
held of record
on
The subscription
termined
will
on
each
four shares
March 20,
1957.
price will be de¬
shortly before the offer¬
March 21,
expire
on
and
the rights
April 8, 1957.
The
offering is being underwritten by
a
group
houses
of
ment
under
City
of
The
investment
the
First
Securities
joint
banking
manage¬
Boston
Corp.,
Corp.,
Collett
&
..
,
advise
foreign
companies in
exchange,
foreign
the
businesses
of
and restrictions,
Savings
concerning
establish¬
*
department of The First National
and
and
governments
matters
countries,
Trust
of
than 36 different countries,
They usually confine their busin.ess t°ban^-s» brokers, and finaflcia^ institutions. In addition to its
regular business activities, the
firm continues to suggest and
Pfefferkorn, VicePresident and head of the foreign
C.
Mouney
securities
the
™°re
ment
tional
National Bank,
was
Belleville
of
ant Trust Officer in
ing
*
*
Appointment
ern
banks
at
will
one-fourth
for
♦
with the
Pa.
agreement
merger
stock
Provident
if
if
Ohio
aware,
Trust
on
shareholders
Chairman of the Board.
Mr. Moran entered the banking
*
100,000 additional shares of capi¬
the
Under
ceive
increased its common, capital stock
from $750,000 to $1,000,000 by the
sale of new stock, effective March
7- (10,000 shares, par value $100.)
charter
the
and
The First National Bank of Del¬
institutions.
two
effective
stock,
new
(42,000 shares, par value
and
March 12 ap¬
proved the joint plan of merger
Provident
troller
Philadelphia,
Company,
*
*
appointment of Brian T.
Moran, Jr. as an Assistant Comp¬
Pa.
and
Bank
of
stock,
Philadelphia,
Tradesmen's
1931.
The
*
Stockholders of Provident Trust
Company,
$700,000 to $840,000 by
the
announces
■ *
*,
sale
Ashtabula, Ohio
common
capital
$20).
opening
re¬
the Bank's domestic
banking
division at One Wall
Street. During the past two years
assigned
Pa.
National Bank and
its
March 7.
in
of
of the close of business March
The consolidation was effected
under
.
increased
the
*
*
County National Bank and Trust
,
./ The Farmers
partment at the Hanover Bank.
*
will
and
Trust Company of
stock from
President, has been named officer
charge
Vice-President
elected
continue to direct those activities.
.
Trust
York,
that
business
Bank's
1950, to serve in the foreign de¬
*
*
Mr. Lynch has been
•
- •
1.
National
-Central
his early experience
was
in the Banking Department
and since 1928 he has specialized
#
*
with the Hanover Bank
ciated
with
sociated
was
as
Dunn, John
ing Department., f
f Mr.v Knight,, has
October of 1929.
dent.
of
system;
Chairman of
later
Company of Santa Barbara, Caiif.
Bank's
Mr. Caldwell will head the
over
the
Burdette
stock
common
board of dl-
three years
$300,000 consolidated
Wadena
Vice-Presi¬
Senior
as
a
$12 billion invested in real estate
mortgages. Sixty-five to 70 cents
with
stock of
mon
Department.
Banking
Elected
to $1,010,050 by the sale of new
ment.
r:'.:--.y..-.
'
savings bank in stock, effective March 5. (202,010,
Mr. Carpenter, a Vice-President
this state. Now the savings banks shares, par value $5).
since 1947, assumes new duties as
*
*
*
of the state have approximately
made
ever
ville, HI.,
appointed Assists
was
Cashier by the
accorded the title of Vice-Presi-
Bank's
the
Loan
*
*
Island National Bank
The Long
of
1938, and has
been closely
cial
elected
a
Jamaica Savings
*
an
'
M.
J.
elected
14,
Central National in
President.
estimated
Cleveland,
of
Bank
March
Ohio,
if.
it
the
Bank, New
on
National
Killpack, formerly senior VicePresident, to Executive VicePresident.
Following
extensive
financial
experience, he joined
Atlas,
of
Trustee
7;*. i v';/---
$
.
A
.-Vi
,
rectors and
*
\
*
National Division of the Commer¬
Treasurer.
Sol.
r®
.
tral
1
ant
and
shares, par value $20).
27
Bank,
Savings
Central
in¬
was
$128,000 to $256,000
stock, effective March 7. (16,-
000
ris
if
if
if
.
Radford,' Va.,
from
a
new
to Trust
named Assistant Secretary.
was
.
posits totaling $148,195.
On Oct. 11, 1836, The Bank for
Savings made its first loan on
to
Secretary
Assistant
appropriately called — "The
for
Savings," opened for
business in a basement room in
The Old Alms House in City Hall
Park.
On that first day 80 New
Frank
Vice-President;
Assistant
G.
of
stock
stock dividend and from
$256,000 to $320,000 by the sale of
/
ad¬
.was
of
creased
by
'
.
Belleville National Bank, Belle-
The First and Merchants National
Bank
•*
•
National Bank and under the title
if
capital
common
by
<
Anderson
C.
Willis
•
sistant
in New York solely
At
by
Bank,
Exchange
Corn
Harold H.
the
Yorkers
a
promotions
New
State.
York.
On
*
.
executive
Six
The
•
ajidIndianapolis Bond In 1920, he
-
•
Chemical
non-profit institution were Rich¬
ard
Varick,
William Few and
Brockholst Livingston, Colonels in
the Revolutionary War, and civic
associates of Washington when, as
First
clients.
^
if
.
Among
Assistant
as
Siegfried, for 30
years President of the Kutztown
National Bank, died on March 12,
at the age of 75.
bank
and systems work for
ness,
'*■; On March .26, 1819—138 years
ago—the New York State Legis¬
lature granted < a charter to The
Bank for Savings in the City of
New York.
The signing of the
bill by DeWitt Clinton,
famous
Governor of New York, marked
the beginning of savings banking
headed
serve
Inc.
$250,000; and Belleville Savings
Bank, Belleville, 111., with com¬
Clarence
CAPITALIZATIONS
Co.,
and Share Corp.
of
charge
Cashier.
REVISED
in New York
Reizenstein. who is
Louis J.
Trust
CONSOLIDATIONS
NEW
V
i
Vice-Pres-
Executive
WPNB
dent
■
.
(1352)
20
Bank
of
San
relating
financial
to
in
foreign
regulations
and other matters
international trade.
Diego, Calif, retired recently upon
the completion of his 50th year of
service to
ing
career
1907
as a
later
and
he
Hodgdon Adds to Staff
that institution,
Mr. Pfefferkorn began
at
First
his bank¬
National
bookkeeper. Three
was
made
chief
in
(Special to The Financial
BOSTON,
years
ton' has
teller
Hodgdon
placed in charge of personnel.
Square.
become '
&
Chronicle)
Mass.—Tully NettleCo.,
associated
10
Post
with
Office
Volume-185 ^
Number 5622
;; :
The Commercial und financial Chronicle
P.
■'<
<
S
•
;
/;■'*}
PAUL EINZIG
*
ro
:
be increased lo. some, extent.
;V>:^ jqraployees\PL progressive in-;
:
!" '*
tf "V" f
/.;; ;'
J
^
"
'■
<^353^ £1''
*.ke
:
J
f^ll Relief it of higher productivity
Ihen the
wages increases granted
in non-prpgressive industries must
ship between productivity and wages is cited by noted British
interpreter (or responsibility in current inflationarywage round of demands. Economist Einzig notes a, stiffening
of employers' attitude now that higher
wages can no longer be
easily passed off in higher prices, and warns that higher wages
to those
producing new labor-saving equipment and for those
operating the equipment before cost is amortized amounts to
paying productivity benefits twice.
eccnonuc
available
for
purchase.. In
the-
words,
.application
that workers
principle
industry
benefit
are
of
other
of
each
J.ue?1r
uons,
At the time of
To
productivity
would necessarily mean inflation,
acute
genpeof wages demands. By artithreat, tlciallyreinforcing the gold re-
Sn/?A StA 6
3,000,000
•
em-
with the aid nf various, arrangements with the International
serve
gtne«ing.and ivicnetary Fun^ arid the United:
.shipbuilding States and Canadian Govern-
••■,e .r.5** mehts, it helpexl to create a; false
;trade^ atmosphere of 1 Security
amidst
Their
>
mand
'
a
entitled
*
1
and
income
wage
of
the
mental
spokesmen
trialists who were
concede
have
and
indusprepared to
the
o y era
of the
to
claims
press
extent
their .bargaining
of
The government, and also;
employers, are to. blame for the
power. :
new
arid costly
.Uatiy^ rejected eXC^ive
a
d
n
Stock
equipment,
the «benefit4
a s ;
named
is
distributed
it is
a
.behalf
of
S
e
D
epartment
r
i
v
i t., w a s.
c
a
e
n?t.
./.Mr.;
nounced
Haff will also
serve
as
sistant
to
serve
the
Harold. W. Half
as-
-,
Louis
H.
Whitehead, a;
all ; pf
partner,
in
activities.
.
the
,1
assistant; to
as
Whitehead,
do nut outrun productivity to;~government or Of employers have
those industries. This attitude not taken the trouble of analyzing
a
firm's
'
Louis
H.
partner, irrall of the'
firm's activities;
:
to
j
the economics of the relatiops-.be- Whitehead
Prior
i n ing Cosgrove,5
Gammack, he was
&
^
lqrgpiy^contributed to
firm's
Investment
pity that those who speak
on
Busi¬
the
of
among
.
b e e.n
Manager
ness
new equipment, If
the full benefit of increased pro-
ductivity
Ex-
and
,^
of
higher productivity has already
been paid out in advance in the
form of wages to workers who had
it plain that they before the cost of^ the equipment
interpret it in this sense., Owing is
amortized,
this
necessarily
to the loose wording of their means the distributing of those
statements they conveyed the im- benefits twice over. The result is
pression that they were in favor inflation.
I. /
o
spirit that has developed tween wages increases and higher associated, since 1946, with Na¬
emaiii
cause their spokesmen; in ill-ad-aitl0n& the trade uftioos leading productivity
before
committing tional
Securities ' &
Research
Uhtil recently vised public
statements, have uh-; to the'claim for the full benefit themselves to loosely-expressed Corpbration, as manager of the
most employ wittingly conveyed a- false con- of. .higher productivity achieved dangerous principles. Given the Dealer Service Department.
ers confronted
Or: Paul Eiuif
ception about the relationship be- in; their respective industries.
prevailing balance of power bewith exces- tween
increase
of
productivity
What is worse, human nature tween employers and employees,
Sive
Joins Dodge Sees.
wages demands, were,almost and increase of wages. *
!
* being what it is, since employers trade unions are inclined in any
invariably inclined to take, the
(Special to The Financial Chronicle)
•
Every now and again a member appear
to have conceded this case to press excessive wages detre*e- Although. of government or a prominent principle, unions feel they must mands. It is not for 'the- gdvern-' ; CLEVELAND, Ohio — William
h^n tc tACM r w industrialist declares that wage* ask for. even' more than is volun- ment or employers to encourage F. Clapp is now with Dodge Se¬
2S by^o^Sgmos?of»ncrease? «i"
of the in, tarily offered to them under that
further ^ t°pr°vWe tijem curities Corporation, Engineers
^ages demand- also be-;
the
k
or
changes,
labor-saving capi-
the- principle ought to Workers; operating the;equipment
must have,
White-,
American
So far as increase in productivity
is the result of the installation of
the. industries so long4as the increases wfth authority
to
Cosgrove,
New
Y
.made
in'S" which trade unions feel they are; Of wage* increases in particular
10%:
wages, and
eiwp
tivity
with:
City, members
is. to blame for this resur- nation as a whole. Those govern-, produced the
writing there
is
Government
sociated
head & Gammack, 44 Wall Street,
N'e w
Y o r k-
used for lowering the selling
prices of manufactures,
Last-but by no means least, in
This^ latter criticism would not tai
apply if the principle were applied
to the relation between produc-
large extent the govern-
a
J1.31 fu
Cosgrove, Whitehead
...
^entitled to .the full
higher
;
Harold^^ W.-ttaff has become as-*
.
jg
the
in
Haff Joins
,
''
Blames
? Harold
V Moreover if. owing to the^sfrong
-bargaining power , of unions in
Britain the. whole
benefit
of
higher productivity is given away
in higher Wages, British exporters
constitute .additional purchasing
may find it difficult to compete
power without any corresponding
with rivals- 'of countries where
increase in the amount of goods
part of the increased productivity
Government's and employers' incorrectly expressed relation*
LONDON, Eng.—Britain is expenancing onq:of her all.-tqo-fre-
Impact Upon Export Prices
,
^
_
'
4
a
Se^ri^llv
Thev
lift
in
abie
ing
tw
nrioe«t
and
higher
crease in-productivity, are
™
increasing
the.r
thereby
cc>nnection
In
wages
during the last 12 months
or
so
many firms
found themsolves
compelled
to
pay
the
higher wages out of their profits,
There was a sharp fall in profits
in
number
a
with
present
engineering
Allied
the
of
Employ-
of
tne
the
implications
statements
,
may
y
been
mainly responsible for the
stiffening of the employers' attitude toward wages demands.
any
which
practiced by many
business firms during the years oi
Voluntary dividend restraint had
failed to call forth a corresponding spirit on the part of employees' organizations. This experience seems to be repeating
itself once more.
Until recently
jn
that
mean
firm
now
.
down
and
with
necessarily entails inflation.
England, Inc., 68 Devonshire St.
the
the
to
up
y
productivity has increased
firms concerned.
Or
they
were
Erroneous
are
Wage-Productivity
Formula
^ first of the three
tations is
unre-
interpreclearly impracticable in
with
industries
national
wages
agreements. The increase of pro-'
unionists also argued in
ductivity Varies from firm to firm,
disputes prior to 19o6 that, and it would be impossible to
since the output was expanding, establish wide and varying wages
substantial wages increases were differentials between firms in the
an
imperative necessity both on same industry,
moral and economic grounds.
On
The second interpretation would
moral grounds it was claimed to
tend to widen wage3 differentials
be a matter of elementary social
between
various
industries.
If
justice that the workers snould carried to its
logical conclusion it
Trade
*
Yu ^ei.r
share in the prosperuy
is
increased
it
might
Gf
would benefit b
But
in
.remained
.
1956
-
would have
or
less
^granting of such a demand would
certainly result in "too much
money chasing too few goods."
no
ghare in the grow_
as
employees
because, if the
entire benefit of higher productivity is distributed among the
employees of the industries
directly concerned, there would be
nothing left that could be given
to consumers in the form of price
output
unchanged,
Although there are now signs of
a
revival of the increasing trend
,—especially in the outomobile industry—the extent of the expaasion is not likely to.be sufficient
.to justify a demand for an increase
of anything like the 10%
.claimed for the engineers.
The
more or
■
fs
Highlight!
as
♦
as
bear
in
mind
up
♦
19.56
was
Tilo's best
year
in its
Earnings
earnings reached record highs.
results
were
These
+
directly attributable to a
|>een, is
now,
tion of
Tilo has
^
per
and
even
declining industries must
Share
share, compared to
share in 1955.
Total Assets
*13,990,39(5
as
compared to
*11,917,332 in 1953,
sale and applica¬
an
(
increase of $2,0t3,0(> 1.
roofing and siding of its own
manufacture for
residential, commercial
♦
Ratio
Current Assets to Current
and institutional buildings.
Liabilities: 2.40 to 1, based on
*12,045,415 and $4,898,532
of the Annual Report which
includes the financial statements of the
A copy
Company, may be
obtained
upon
request.
resjHH'tively.
♦
Long Term Debt
Reduced hy $250,000.
Tilo Roofing Company, Inc.
Americas Largest
Roofers
pressure
.
per
Dividends
*.90
and expects to remain
the leader in the direct
Earnings
*1.20 per
concentration of market coverage,
which lias been achieved as a result of
market research program.
Net
-*2.0J in 1935.
greater
our
*22(5,212 from I9.>J.
*"2.30, increased from
comparatively long history. Sales and
that
for higher wages is not
confined to progressive industries,
The wages of workers in static
Net
JU.1.3.U4* in 19.>6:
consumers,
must
Sales
$! *, 1(57,727 in 19.57,
♦
reductions,
We
of December 31,1956
*13,7->7,3.17 compared to
Report to
.
STRATFORD, CONNECTICUT
Co., 75
'
it
industries
the expansion of
ing prosperity, either
.
industrial
the workers
production. On that principle the
employees
of
static
industries
be
impossible to find buyers for the
increased output.
mean that only
the
progressive
wouid
On economic
grounds it was contended that unless the purchasing power of the
masses
connected
Financial
wages
pf their industries.
now
Federal Street.
wages
bill
whole may
lentmg vigor.
.
Robert F.
Peabody &
Planning Corporation of New
,
dividends
aemands are
nevertheless
pressed
0rs
connected with Invest¬
in
that workers in any industry are entitled to the full
benefit of higher productivity. Or
they may mean that the total
many
have been cut, wages
—
is
with Kidder,
that satisfaction of their claim
1S noW
Mass.
Goldhammer
gl
.
.
Kidder, Peabody
BOSTON,
BObTON, Mass.—Frank J. Mag -
fact
~
(Special to The Financial Chronicle)
tut™
wages
extent
to
argument
demands
Although
profits
Joins
They
of the nation as a
increase to an extent
corresponding to the increase of
the rise in profits and dividends the output,
pressed.
t
to
may mean
.
with which wages
^00
of. their
three
workers
entitled
are
mereases
Self-denial
main
the
to
regard
<
Inv. Planning Adds
to
open'
are
fvn5HCnrippdifferent interpretations.
void price increases, must have
the
without
:
in advance.
Federation declared
8
constituted
tr*
Building.
With' ammunition by conceding
tries, witnout regard to tne tact
quite recently that "wages must
productivity." Neither he nor other industrial or governmental spokesnien
expressing
similar
views
made
any
attempt of defining
what precisely they meant.
Yfet
together
by
not be allowed to outrun
instances, because of the growing
difficulty pf putting the higher
circumstance,
the
the
President"
and
National
ers'
in
the
Engineering
conceding
with
disnute
in(justry,
But
dividends
pressins
are
creased productivity are justified,
profits.
and
They
kT in *e.lncreaset!n pr0^c"
-0l their respective industivity
them from maintain-
even
Drinciple
implication that wages increases
w
did
waffe«s
un-
fl
:
mey are pressing, too much
therefore, for wages increases in
justified,
adr tL hlgher To^
ArirtAAf
prevent
not
to
!
S mhS
mca
to
their
consented
,
22
(1254)
The Commercial and Financial Chronicle
Western Securities
i:
r
New Eastern Office
Continued
Bank and Insurance Stocks
a
office
new
Place, it
One
at
By ARTHUR B. WALLACE
Exchange,
by Clin¬
announced
was
This
ton H. Ander¬
One
President.
sen.
This
is
in
area
Week
which
is
but
little
difference between
with the practical facts of
some
mighty tough competition.
But I frankly confess that I am
still a little hesitant to try to state
the
leading New York City banks and the large units outside New
branch
office
of
York is in the distribution of
operating income: the gross amounts
derived from loans and
discounts, from securities holdings, and
company,
from trust activities and miscellaneous
with home of¬
breakdown of gross income
fices
omits from
in
Lake
Salt
City,
Utah.
to
Morton
Lesser,
derived from working assets.
as
For
with
This
consideration, cash; and while cash supplies no income
long as it continues as cash, it is an important factor
as
:
>
example,
on
and
1956,
was
for the
New
York has been
York
of
a
Lester F. Gannon
of
office. Lester F. Gannon,
formerly with Peter Morgan
Co., is manager of the trading
department.
Western
Securities
Corporation are brokers, dealers
new
&
underwriters
natural
specializing
volume
for
at
the
the
1955-1956
of
expense
trend
The
security
been
holdings.
to
increase
Thus,
the
Cooperatives
public
arrangements for a
of $50 million 6V2-
issue
month
consolidated
trust debentures,
Bank
Service
of
offered
Farm
through
on
John
T.
Knox,
the
with
the
assistance
of
of
nation¬
a
much
subject to call
be.
turity
category.
Not
all
the
one,
the
in
the out-of-town list
S50,000,000
3,V2%
of
deben¬
and
par
the
rate
will ;be announced
March 21.
The
Banks
of
on
for
marketing,
purchasing, and business service
cooperatives. Chartered under the
Interest
1955
provisions of the Farm Credit Act
of
Bankers Trust b______
the
i supervision
Credit
of
the
Administration.
bentures
the
Farm
The
well
as
I
16
41
48
27
23
"32
49
59
29
20
55
60
23
18
55
66
24
14
'
a
22
21
51
56
31
26
61
20
16
26
58
64
22
16
23
27
21
17
c
TALLAHASSEE,
S.
Johnson
curities
313
is
Fla.—Charles
engaging in a se¬
business
North
the firm
from
Monroe
name
of C.
offices
Street
forma
for
earlier
Loan
1955
First Penn
SAN
569
Geary
securities
has
opened
Street to
offices
engage
at
in
Int. & Div.
Bulletin
195(5
1«»K5
195(5
28
61
71
28
19
11
10
58
63
27
24
15
25
Bank
Dept.;
Stocks
By the
i4.;
14
65
20
18
18
35
23
59
25
20
.22
63
17
24
19
62
68
19
15
65
69
18
16
Old
ness
in
a
the
firm
Investment Co.
growth
com-
relation to its costs and
yet
meet its competition in the
market
place. That it does try to meet its
competitor's price is not, to them,
sinister indication of
monopoly.
are
thev so wedded to the
a
Nor
law of
supply and demand that
they expect any business—as an
evidence of comnetition—to
gouge
them for all that t^e traffic will
sell
in
at
times
loss
a
made in this
was
only pro¬
can
almost quadrupled
V
*
in
So it is evident,. I think, that
big business has not stood as any
to
the
establishment
smaller
this country.
believe, that
enterprise
competition
effective
and
fully
the
they
in
have
have
been
measured
for
purpose
up
which
withstanding.
And outside the realm of com¬
petition and research and job^ and
*
production,
they
things, too.
other
Aiding Education
i
name
ment,
charity
schools and
ing to
note
Progressive and Realistic
27
12
1.9
17
:i7
second,
it
seems
„to
me,
that the informed expect big busi¬
.46
13
.
aiding
Competition
Now
21
-
the
set
U.
S;
five
un
including
more
than
ness
to be progressive in its com¬
petition.
become
to
15
They
do
fat and
not
want
lazy and
it
com¬
Liberal Arts college
And the number is grow¬
Still another plus which the in¬
formed
expect
course, is
that
from bigness, of
leadership- and I am not
sure
successful!
78
concepts.
14
13
8
62
13
16
19
22
ment
46
18
21
32
33
tion.
to old products
models, old styles and old
And
if it does so, the
help from govern¬
dealing with the situa¬
They merely put the offend¬
people need
Co.
In
(Special to The Financial Chronicle)
Garrison
Calif.
is
business
Street.
—
conducting
from
offices
I
on
the shelf and out
business, whatever its size
may
be-
A. S. Garrison Opens
FRANCISCO,
no
in
ing company
Sutter
since
was
the
groups.
and old
111
that
ing.
placent—clinging
at
big
5,000 corporations or corporatefinanced * foundations
which
are
11
S.
they
to
ago.
23
securities
look
the list' of corporations
aiding higher education has grown
from
a
few
hundred
to
many
years
n
Alfred
to
Steel Foundation
23
a
hosnitals,
need arises,
In this connection it is interest¬
34
General
new
very
likely
business first.
20
Banders
drives,
recreational facilities.
a
are
50
of
f
"
.
the community. Beyond the
heavy
burden of taxation that it
bears,
they exnect it to contribute both
time and money to civic improve¬
15
SAN
•
look to big
business to discharge
fully its ob¬
ligations as a corporate citizen of
40
busi¬
many
Among these, they
55
securities
expect
;
57
Trust
to
healthy, intelligent competition—•
theorists
to
the
contrary, not¬
66
Colony
or
of
surplus,
paying its customers, in ef¬
fect, to carry its products away,
:
They just expect vigorous,
thousands,
enacted.
were
shortage,
times
and
It is also evident, I
the laws governing
business
to
of
in
thus
And when
threat
believe,
•
same
has
I
way,
•some
78
from offices at 6105
under
a
will have
grocery.
same
people expect big busi¬
its products with
49
Forms General In v. Co.
engaging
as
and
of
be
soon
price
■62
DALLAS, Texas—Harry Casper
is
born
will
*
11
69
"
and 30%, de¬
spite the fact that its tonnage ca¬
23
56
Includes
itself
17
40
63
- were
Today it
duce between 29%
of
Exchange
in
'•
15
•
42
'
BROADWAY, NEW YORK 5, N. Y.
Specialists
18%
'
15
53
Valley National
Telephone:
1
•'17%
62
,
industries
became less than one-fifth
large proportionately as it was
13
x
(L. A. Gibbs, Manager
Trading
In other words
this period.
growth *of
,
-195G
61
Nat'l Bank, Detroit
Members New York Stock
Exchange
Members American Stock
BArclay 7-H50#
Teletype—NY 1-1248-49
1955
58
Laird, Bissell & Meeds
Bell
;
sions & Misc.
13%
First Nat'l, Boston x__
First National, Dallas
Available
-
Fees, Commis-*
26
Second State, Boston_
12#
J
-
18%
Bank of America
Securities Co.
in
pacity
37
Christiana
assets
than doubled
the meanwhile.
on
Girard Corn Exch
New
*
-
35
Bank, L. A
the
more
'
Securities
Crocker Anglo
Seattle First
Our
20
56
59
Calif.
though
of the steel that
69%
American Trust, S. F.
of
that 22% had shrunk
even
country.
50"
a
business.
4%'-,
23-
:
Philadelphia National
Nat'l City,
Cleveland
FRANCISCO, Calif.—John
Griffin
16
65%
__
all
of the
100'largest in¬
corporations in America;
18 V"
Peoples First
(Special to The Financial Chronicle)
L.
Co
Mellon Nationals
John L. Griffin Opens
of
token, we find that
at the .beginning of the century,
U. S. Steel produced 67% of all
56
*
Interest
Company.
22%
assets
~
period.
S. Johnson &
see
1909, U. S. Steel's
represented
50 years ago.
20
*
Seventeen Leading Banks Outside of New York
i
you
themselves had
j
-
Net earnings remitted from
foreign branches Included in Fees, Commissions, etc.
at
if
new
the
to
bear
Thus back in
assets
as
20
City'Bank Farmers Trust Co.
Breakdown of Sources of Gross Income
under
22
18
54
Includes
community
although
21;
'
17
b Pro
(Special to The Financial Chronicle)
,
business
what I mean.
he
business, and she
in
ness
smaller proportion of the whole
a
respects,
informed
more
panv,:
29
21
63
Trust_____
even
that today a single big
business represents a diminishing
segment of our total economy—
so
15
\
22
61
York
whole has grown
15
'22
•
-
Trust-
U. S. Trust
Forms C. S. Johnson & Co.
"
Morgan & Co.___
New
♦
•
15
17
J. P.
a
rapidly,
other companies grew, U. S. Steel,
17
the grocer's
cover
overhead, allow for
any
these
widely
30
23
Irving Trust
more
30
24
Manufacturers
tie
15
68
Hanover Bank
to
18
68
^
beginning
55
%
his
the
which
fact
peW
60
Exch.
important
23 %v
'
tag must
costs and
operations
24%"
Guaranty Trust
obligations and are not guaran¬
teed by the Government.
195(5
ifjftr,
their
11%
First National City c a
Government
not
195(5
the
on
can
14%'
62
Corn
Empire Trust
cooperatives,
owns
capital stock in these banks, their
are
'
1.955
'
company
66%
Chase Manhattan b
secured
as
debentures
>
sions, Etc. ,-;
-
Chemical
de¬
joint
and several obligations of the 13
banks. Although the Government,
are
52
195(5
62%
Bank of New York
1933, the banks operate under
Securities
1
inte¬
must
which
Another
the
Fees, Commis¬
But if she stops to think about
it
at all, she expects
that the price
mate¬
raw
fully
as
So
dustrial
from
She merely looks at the
price
tag and buys or not as she chooses.
to hunt up a
to
.
major
steel
still
But by 1955,
Int. & Diy
antique furniture.
each
big businesses have grown
bigger over the years, industry
='
Loan
grocery
many
on
some
•
New York City Banks
make loans to farmers'
oriental
an
housewife wants a piece of
liverwurst at the corner
existence.
very
about
a
it
in
—
understood, I think, is that while
three mentioned above, with
Breakdown of Sources of Gross Income
Cooperatives,
atmosphere of
a
out of
-
only
the year after Christmas trade.
be the custom in the Far East
the
bazaar.
require.
countrywide, it is probably little beyond seasonal in this part of
about
whatever
materials
this
do so,
Cola
nearly 100,000 smaller businesses
rely on U. S. Steel for the basic
is
publish
that
the price of
over
Coca
necessary
profit, and still
meet the
competition across the
street.
For if it fails in
as
banks
in
depend on
than 50,000
smaller busi¬
to supply it with necessary
nesses
With any decided let-down in
general business activity we can
expect loan volume to decline somewhat and
government holdings
to increase.
While there has been some decline in
loan volume,'
interest
or
nears the
95% maturing in five years.
maturing
April 1, 1957, to
repay short-term borrowings, and
for lending operations.
The debentures will be offered
at
Philadelphia National,
out-of-town
may
of
goods and services; and similarly,*
-
the New York banks.
of
information, and of those
not
example, produces
own
is
as
Yet
more
higher yields and because they
are
their
S. Steel, for
grated
its
wide group of security dealers.
Proceeds will be used to redeem
tures
as
for
instead
dependent
are
—
that
buisness
small
rials, and
large New York bank at the 1956 year-end date had 100%
government holdings maturing
(or callable) "within five
years; two of them with 99% of their portfolios in the same ma¬
St., New York City,
agent for the banks,
fiscal
as
realize
much of its
average
One
William
130
not
are
ac¬
commer¬
the grocer to auction it off
to the
highest bidder like a piece of
U.
we
somewhat longer maturities for the
issue .will be
new
best
store, she certainly doesn't expect
and
play. By-and-large the leading New York City banks adhere to a
policy of investing in short governments, again for the same reason
that they are heavy in cash The interior banks tend
more toward
Credit
announced
The
19.
collateral
the
of
fields
loan
consider interest and dividends from
securities, the
matter of liquidity as between the two
groups again comes into
the Cooperative
the
Administration
March
When
them.
competing against each other, big
.
making
are
and
glad—need
realistically and in
with
bottle
a
have
moreover,
is
of
one
expect to haggle
If
informed;
to
other
has
Nor
established.
were
come
increase in loan income of the New Yorks was over 11% and
6%
for the banks outside New York.
Higher interest rates have con¬
tributed to this increased
take, but the greater volume has been by
far the important
component.
Offers Debentures
Banks
that
apparent
business.
small
and for every company that failed
last
year,
11
new
corporations
analyzed, they usually will
are
and
rapidly than the population,
more
Among both the New York and the out-of-town banks it will
Cooperatives Banks
13
pointed out that New
be found to be greater in the central cities.
be
The
it is
portionately than those of the interior banks; and if the cash hold¬
ings of the two groupings of banks
in
and oil stocks.
gas
When
serve
also
and
City banks.
thus
Resident
the
York
has it done so; for the number of
business units continues to grow
central reserve city in the Federal Reserve
System and
must, perforce, maintain a more liquid position than the re¬
city banks or the country banks, large cash reserves are the
means to this liquidity.
The central reserve city institutions are
of course subject to call for funds
by the interior banks and have
to emphasize cash and assets that are
readily convertible into cash.
Thus, their loan portfolios tend to be somewhat smaller pro¬
appointed
Manager
is
new
people;
Steel
cial
concepts
of
the
American
market place.
The youth who walks
up to a'
modern vending machine does
the
growth
establishment and
steady
about 9% greater for the list of interior banks than
say—to be
to compete
prevent
never
States
cordance
F'rst, that competition from big
shall
to the expectations
up
American
And third,
I believe that in¬
formed people expect
big business
an
business
the
United
I
anyr
that
is
.
the accompanying schedules, the average ratio
of gross income that came from loan interest in the two
years, 1955
Morgan
& Co., of New
of
certainty exactly what
informed public ex¬
pects of big business in this area
—unless it is these things:
it
-
among assets.,
for¬
merly
Peter
bank
a
with
In other words, a
sources.
fully lived
cope
the
tenth
the
...
...
Or, the Bigness of Business
Bank Stocks
—
there
5
page
Thursday, March 21; 1957
.
This Business oi Bigness
JERSEY
CITY, N. J.—Western
Securities Corporation has opened
from
.
.
this
respect,
it
is
interest¬
ing to note that* of the 100 largest
industrial
corporations
in
the
in
counted
success¬
in
j
on
virtually
every
that affects the industrial
nity.
If
but
have
been
ness generally in this
repect, here
again big business is expected, as
though it were a special respon¬
sibility, -to
stand
up
and
be
parently -these
29
have
we
While much is expected of busi¬
Congress
1909,
as
cases.
only 29 were
still in this category in 1955. Ap¬
country
always been as
meeting this ex¬
in
pectation
other
have
we
benefit
a
bill
which
one
which,
is
may
segment
in
issue
commu¬
introduced
in
to
of industry,
reality,
purport
would
be
Volume
185
Number
5622
.
Financial Chronicle
The Commercial and
.
.
(1355)
-
23
'
harmful to
u>
modern
the
factors
cide*
before
them
fory themselves what action
they .think
is the
persons
7
r'
that
when, the
case
depreciation provisions of the tax
laws
become
they
now
outmoded
so
are
that
—
they seri¬
•
ously: impair the ability of indus¬
try «—*• both vlarge and small — to
replace i»s worn-out facilities and
to
Col. King adds -up the
international and domestic factors
fronting the harassed businessman and finds "the total
equals a brighter picture."
And
when
1
u
perhaps
larger joint ventures in bpsienterprise than* our present-*
unions
demand „* wage
increases
vastly exceed the'rise in in¬
■'''■-'-J
shall-* I
nor
-
sum
for
sales expanding, Government spending
"earnings and bank deposits are at an all¬
ing f up,
«
ude
*
time
dining,
high
foreign
and
is
trade
constantly improving. Social Sepansion
and curity, pension -benefits and undustrial
u^m
1 :««--«=—
productivity — and thus ; ' But when I see. our population
force prices higher and higher' —; -doubling and.- nerhao^.^redoubling;!
onstru ction employment and health insurance
the
whole community
looks * to in a single century, when I gee'the mMM»liiiiiti»lil)H ?ave "jade great strides m helping
that
venture
even
prophesy.
a
,
for
plans
4 y
.
ex-
*
■
big
it
business
to hold the line if
.to"; take the strike if 'it
.can;
the
world,:
when
.
to
pay
the, ^conse¬ the enormous drain on our natural
whatever they may be., resources in the coming century, e
Unfortunately, however, even our when I witness man's first; falter->
must;
and
tion,
quences,
biggest businesses have
stem
this
-
tide
of
to
they have, I believe, been
final
the
/meeting
the
on
the
resources
that
order
insure
to
future.
their
industrial
vital
and
bauxite
of the earth.
dustries, like steel,
developing
are
for
"
esses
usable
ore,
materials to the farthest
raw
corners
are
other
and
In many in¬
costly
the
they
moreover,
new
proc¬
manufacture
of
materials out of low-
raw
universe—such
of matter out
thing:
one
5
.
,.
p
of
r
"
<<T
for
little
witn
i-.
....
,
fv
•-
is
not for
It
minds.
-* the
-
satisfy the needs of
our
beyond the lifetime of
the corporate-executives
any
of
Who
are
now
the
of
it for
without vision who fear- to
progress.- It is not for timid men "a
men
being
more
not
those
for
arch' reactionaries
or
and
force-American
to
back
the
into
puny
we
industry
;■'.production-constantly
natterns of its Nineteenth
Century
to
seems
me
■
•
,
wisdom
realities!
•;9 Well,
if
our
patience
the
and
.
-
-
i
number of large steel
had
to
band
to¬
gether to develop far-away irondeposits, and
manufacture
Similarly
stances,
usable
out
ores
in
—
processes
of
materials
grade taconite
again
—
plants and
furnace
to
for
blast¬
of
low-
here at home.
number of in¬
companies
are
a
several
working
together
titanium
xt«
—
our
* -.v
'"
■
to
to
prices
use.
East,
are
And
create
the
out
power
in
the
single company,
now
would
seem
witnessing
that
another
we
are
signifi¬
cant
and
3.625%
eyer
confronted
us
and
in
M
a c
P
r
of
e
Developers
Toronto,
M i 11
a
Mrs.
Associa¬
Viola
R.
n,
sident
Viola
Mac
Mines,
was
unanimously
elected
to
the
Presidency
the
of
Associa¬
tion,
this
marking the
14th
tive
was
consecu¬
she
year
hon¬
so
ad¬
In
ored.
the
onvention,
dressing
C
Mirs.
lan
Viola MacMillan
MacMil-
took, the
>
;
to remind the new gen¬
occasion
eration
in
despite
have
been
no
the
made
available to
still
prospecting world
advances that
in the facilities
prospectors, "there is
the
that
substitute for hard work,
persistence, patience and stick-toit-iveness"
for
success
in
the
mining business.
,
Elliott, N. Y. Agent
equals
CHICAGO, 111.
Baker
has
Treasurer
^
>•';">
For Toronto Dominion
Stein, Roe Appoints
Fartiharri
been
—
The Toronto-Dominion Bank has
Mildred N.
elected
Assistant
that
announced
has
been
T.
F.
R.
New
appointed
Elliott
York
of The Stein Roe & agent. He will make his head¬
Fundf Incorporated, it quarters at 28 Broadway. He was
formerly
manager
of the bank's
Montreal office.
t
,
to
a
people pooled their resources and
75th year, sales volume of The Diamond Match Company again
record level. Earnings per common share were $3.04 against
retail
sion, modernization
wooden match
;
of
the
machinery ahCloquet, Minnesota and redesign of molded pulp
machinery for greater production. The new integrated forest products plant
at Red Bluff, California, moved ahead on schedule and a hew Research and
Engineering Center was purchased at
Stamford, Connecticut.
,
Com- y
-
»
Hutchinson
i
$133,716,000
SALES
NET
INCOME
PER
SHARE OF COMMON
$128,839,000
8,934,000
NET
9,108,000
6'
&
I
•
STOCK
,
'
t
Net Income after
}
$3.04
$3.02
1.80
1.50
$15.26
$20.49
16.02
11.67
31.28
32.16 ?
Dividends Paid
preferred dividends....
-
.
PER
SHARE OF COMMON STOCK
Working Capital
*
Co.
.
-
'
i1
All other assets.
i
\
Palmer. Pollacchi Adds
Total
:
Less; Notes
(Special to The Financial Chronicle)
Palmer,
Pollacchi
&
Co.,
[
8.16
$24.72
Copies of Diamond's 1956 annual report are
84
6.56
$24.00
payable and preferred stock..
Book Value—common stock
N, Mass.—Edmund C.
Levy has been added to the staff
of
....
■
<
Participating in both offerings
are:
Dick & Merle-Smith; R. W.
Pressprich & Co.; Freeman & Co.
E O S T O
.
1955
1956
the author¬
Interstate
Commission.
McMaster
11
of California lumber operations, installation of new pocket
maturity.
clearing hooper cars estimated to
cost $2,922,500 and the Ann Arbor
RR. issue by 300 all-steel box cars
estimated to cost $2,292,887.
and
of
yard and store operations, reorganization of the Northwest Lumber Divi¬
,
•
$3.02
Important progress during the year included streamlining
sale of the certif¬
subject to
are
available by writing to The Secretary,
State Street.
With Amott,
Amott,
Baker
&
Baker
Co.
Inc.,
150
Broadway, New York City, mem¬
bers New York Stock Exchange,
len. Jr. is now associated with the
which
a
to
announced that Theodore
the part¬
number of
entrepreneur: then
to
f
an-
ual
in
t hag
.
,
the previous year.
equipment -'
from
according
In 1956, its
offered
Pittsburgh
step in the evolution of big
business.
First came the individ¬
nership
th
domestic situation was announced by Harry H. Hagey,
rose
Pittsburgh & Lake Erie RR.
issue is to be secured by 350 self-.*
America.
it
/i
^
The
leading oil companies are among
the very biggest corporations jn
So
lt
*
for pri¬
undertaking of a
even though the
yield
to
ization
the Middle
the maior oil developments
seldom
^
Convention of the Pros¬
pectors
11
and
Issuance
are
develop atomic
vate
,
versary
tion
'*
,
industry.
Utilitv com¬
going into partnership
panies
of
more
1
Bury your haunts, weigh the pros
upon
-4»>r
j-4»»,-.
Sees No Depression
$1,830,000 of Ann
Arbor RR. 3%% equipment trust
certificates,
maturing
annually
April 1, 1953 to 1972, inclusive, at ■!
maturity,
merce
the
and her
.
and
maturing
certificates,
risks, that
have
March" 15
$2,250,000 -of
publicly
3.85%,
mate¬
raw
on
Co. Inc.
&
facts
the
at
Stuart
associates
rials, for example, has become so
expensive,
and
involves
such
establish
little
accustomed
jittery by the
-
Offers Equip. Trusts
Halsey,
icates
ore
a
ai
1956 HIGHLIGHTS at DIAMOND...
trust
The development of
a
aW
changing daily foreign
Secondly,
•
nually April 15, 1958 to 1972, in¬
clusive, at prices to-yield from
3.625%
to
3.80%, * according *• to
pected of them.
companies
so
.7
V
year
to
& Lake Erie RR. 3%%
realistically, \ we
are
bound
to
conclude,' I
believe,
that
even
some
of our biggest corporationsare
rapidly .getting too small todo all of the things that are ex¬
5
adopt
present
the
peo¬
Small*
look
we
fully to
•
,
Big Are Too
,
to
at the
need
people is a great deal healthier than any- Jr., President.
for whom they -strive—will also:
'. .
' •
'
•.
:
■" '
have the courage, the persistence,
j~~~
all
of
encouragement
that they
up
expectations of
ple?
is
p|c^ure
•
consecutive
Prospectors and Developers Association. *
-
,
tp measure
the great
time
iater, resolved itself and after
become cognizant of that fart,
wershall, not be
few
a
a
very interesting and chal¬
lenging question. The question is:
How big must business be if it
going
Our greatest
powder
keg"
and
adjusted and cons and the total sum
early were frightened by the themselves accordingly. They dis- a
brighter picture.
story of Frankenstein/- And .iU is - covered that every crisis, sooner
who seek to shatter fcqg enterprise
14th
At the recent 25th Silver Anni¬
who
the
raise
is
the ha-
seated
constantly
an
tem; and it
centuries
became
important
things
informed public expects
of bigness in our enterprise sys¬
Which
enable
..
Now I have covered here,
\
will
businessmen
planning and direct¬
'
•
4 -trancforni-. those expectations into
ing the search.
aging and any weak spot is given
immediate attention,
A depression is a long way off.
of
stock
role of world policeman, that
land had
not
is
.
far
take
rassed businessman to face the fu-
,
»>'V .•/
deposits which were once •infancy.
No. The future is for men who
thought to be worthless.. And in
dare to. have great expectations;
both of these ways, our big com¬
and who—with the guidance and
panies
are * uncovering ^reserves
nation
*
factors, that
as
en-
grade
that will
K-
V*'
°
fashioned courageous optimism, which when coupled with
„
' V there will ever be present a tense an honest day's work, has always
4 foreign situation somewhere: Eng- successfully overcome any diffilittle
t,-
m^C*u°n??'
That the future
men
Today our big corporations
pushing the search for iron
and: oil
know
*
•
the
creation
'
they .must have in
f
"
when I -comprehend, ture with hope and confidence.
in
short, the boundlessness - and
• First of all, we must realize that
vastness of bis expectations, I do. now the United States has assumed
the responsibility of business
plan ahead, and to provide the
American people with the natural
of
ergy—and
of
list
those that I shall discuss: and that
to
of
secrets
expectation
him trying
the sun,/J f
see
rays=
are
unlock, if he can, the ultimate ; thesituationand consider the many
successful -in
But
more
when I
observe his determination
when I
Planning Ahead
seeking to penetrate
the
harness,
to
.
depression. .The President's tre-
mendous personal popularity and
"1s many new powers make it
possible to help any ailing situa^on before it becomes too dam-
confused.
However, it is
a good time to
him
outer space,
inflationary
power.
is
people
watch
.
...
ffce the uncertainties of
that
wonder
■
I
big enough—or strong enough—to
.
Also, the Government has
a lot and made great
it is small strides toward' ways to avoid- a
ing steps in an atomic age, when
been
not
.
.
-taintv of the old a§eforeign - situa- learned
contemplate
I
.
and the uncer-
^
of living, rising all over
standard
.
many, people in this
and
;
head of
country peak and there is an ever growing
j®;the .fear;of a .depression, demand for new and better prodWltlx interest rates rising, ;costs ucts. The population is increasing,
- '
: V '
and prices go- new industries are developing and
presage
day organizations?
I
wouldn't know,,;
labor
firm
as
a
♦ <
v
THE
DIAMOND MATCH COMPANY
F. Bul-
member of the Research
Department.
.
Head of Viola Mac Mines chosen
haunting a one realizes. Employment is at its
The horrible specter
grhat
joint /development
the birth of
this
Does •
Mining Association
con¬
...
s
.
idea
„
f
po w e r
an ' ;
.
even
ness
modernize its plants.
in
of them
expected
Renamed President'of
\
Member, New1;York Stock Exchange
<
enterprise, system where size*and
responsibility are compani on
words'
>
* ^
r
>" r-
as
—.
is
By COL. HERBERT G. KING
"
representatives 'partnerships—for one reason and
in governmeint should take.v ' '
'-t one reason alone, ' to do the .job ^
same
i
Viola R. MacMillan
VS.
their
V The
of
prgvide-itfae; hebessary capital and
share the risk's involved; and now
we
see
these • great corporations
themselves rnecessarily
forming
de¬
and
thousands
dreds' of
the caserto tfie public so
the informed inay have, "all
carry
that
managerial skills; then the
corporation .where .hun-*
their
all, big business is ex¬
pected Jo bear the brunt of' the
battle, to search out the facts, and
122
"
East
42nd
Street,
New York 17,
New York
.
'Aw.
24
The Commercial and Financial
(1356)
Continued
from first
in
page
liquidity
and
the
difficulty of borrowing,
corporate
increased
this is not
$3 billion
$5 billion in 1956. "
1955 and
in
by
thus
stepped up their de¬
mands for borrowed funds by bil¬
lions, our people have not ex¬
panded their savings to keep pace
with these demands.
savings accounts
ance
chief
the
of loanable funds, actually
registered
1955 and
The
insur¬
life
assets,
company
sources
!
The total o£
and
smaller net
a
gain
in
in 1954/
1956 than
sharply increased' demand
for loans from real estate and bus¬
iness
has
during
thus
the
two
past
encountered
supply of savings.
mercial
banks
years
sluggish
a
True, the
could
have
com¬
made
good the deficiency of savings if
they had been given the reserves
to support a large-scale expansion
their
of
loans
investments.
and
But the Federal Reserve banks, to
combat inflation, properly re¬
from
supplying these
frained
added
Because of the
reserves.
strictive
portant segments of the economy
Federal
shortage
of
bank credit.
In
competi¬
keen
consequence,
tion has
developed between mort¬
and business borrowers for
gage
limited
the
supply
loanable
of
funds that has been available. In¬
stitutional
in
both
banks
investors
that
markets,
life
and
operate
like
savings
insurance
compa¬
nies, have been confronted with
a
plethora of offerings of both mort¬
and
gages
yields.
not
In
been
bonds
most
able
they have
cases,
to
attractive
t
a
satisfy
all
the
demands made upon them.
Why Markets Turn
In
market,
any
when
demand
exceeds supply by a wide margin,
it seems to the people concerned
that shortages will persist indefi¬
nitely and that prices
oneway—upward.
1
only
go
can
But economic
history has taught
repeatedly that, in a free mar¬
us
ket, shortages tend to breed their
cure.
Demand is discouraged
by higher prices and the difficulty
of securing supplies, while supply
is expanded
by more attractive
prices.
own
This
holds
capital
just
market
true
as
in
as
in
the
the
will
face
of
shrewd
events
changes
in
for
which could lead to
in
mortgage
The
supply
basic change
a
conditions.
discern
can
of
and
market
he
sooner
sur¬
evidences
demand
a
com¬
ing turn in the market, the easier
it will
steps
be
for
him
to
to
adjust his
the change.
There
in
take
timely
operations
three main trends
are
evidence
in
to
now
the
economy that
bring substantial relief this
could
from
year
the
gency
in
These
trends
the
prevailing strin¬
mortgage market.
are
and
significant
so
that each calls for careful
analysis
at this time.
ing.
\
automobile manufacturing
Smaller Vo'ume
acted
Mortgage
The
most
trends
market
is
of
ume
The
important
affecting
the
decline
mortgage
increased
higher cost
these
the
indications
o^financing have dis¬
couraged home building and home
buying, as you well know. New
housing starts have been declin¬
ing steadily. They numbered 1.3
million in
1956.
They
rate of
the
1955 and
1.1
million
in
are down to an annual
barely 1 million today, and
present
trend
is
reduce
the
amounts
that
plans
some
are
for future com¬
building due in part to
the discouraging
effects of the
mortgage stringency.
curtailed
being
mercial
1
real
estate
market has become less active, so
the
Furthermore,
that
there
of
old
in
liens
new
fewer
are
financing
of
cases
re¬
with
mortgages
increased
A decline in
amounts.
mortgage bor¬
new
rowing-is particularly effective in
slowing down the rise in mort¬
gage
debt because amortization
still
down¬
ward.
The full
impact of this drop in
housing starts is only now begin¬
ning to be clearty seen in the
mortgage market because there is
below the level of
were
before.
year
Corporate
a
manage¬
cial
institutions,
become
to
again.
the
To
invest
that
bonds
there
individuals
vestment in
the
there
that
is
less
tional productive
need
since the
for
addi¬
there
has
a
substantial
de¬
prices. Lower stock
prices discourage business expan¬
sion because equity financing be¬
difficult. As
comes more
psycho¬
a
logical influence, a decline in the
stock
market fosters greater con¬
servatism
consumer
in
business
both
and
spending.
Several large corporations have
A
competition
volume of
of
lending.
•
.
One of the most
economic
Policy
baffling aspects
financial
and
casting is the timing of
The Federal Reserve System has
powers,
repeatedly,
sell
to
better balance between the
a
When
supply of savings.
the demand
for
savings
no
longer largely exceeds the supply,
the
upward
pressure
Less
the
or
Decline
A
in
Business
second
fore¬
major
a
the
growing
market, lessens
source
com¬
for loan¬
mortgage market
evidence of
Such contingencies may
arise in the months ahead to
post¬
pone a relaxation of
stringency in
More
of
heavy
very
produced
the
of the
year.
third trend
A
of
Buy
Bonds
significance to
interest
among
In
investment
individual investors.
recent
vestors
bond
as
years,
class
a
individual
have
in¬
invested
chiefly in equities. Whatever bond
peak levels.
in
nual
Such outlays are
to reach
rate
in
with
compared
$38
a
the
billion
ex¬
an¬
quarter,
billion spent
$35
and
are
equipment ex¬
only one of several
why business has been
borrowing so heavily. Others are
rise
in
of
inventories
accounts
and
lion
and
an
To
receivable
finance
this
by
enor¬
expansion of current assets,
by prosperity and rising
prices,
corporations
upon
had
to
draw
their cash resources,
increase their borrowings from
commercial banks by some $5 bil¬
to
lion, and to put out
ume
of
new
bond
a
record vol¬
offerings.
Recently, however, there has
a
strong tendency to halt the
been
expansion
slow
down
receivable.
of
inventories
the
rise
in
and
to
accounts
In view of the decline
change
has
6.82%
lor
composite
porate
oc¬
Moody's average
yields of 125 industrial stocks
1949,
was
By
of
was
when
average
bonds
half.
the
to
will
not
commercial
absorb
sav¬
ings flowing into thrift institu¬
tions, although it will add to tight¬
ness
in
and
in
commercial
the
short
bank
-
lending
term
money
Moody's
yield of cor¬
2.96%, or less
A second
Bank
contrast, last De¬
yield averaged
check
in
the
in
trend
the
towards
capital
would
be
business
greater
market
seasonal
a
borrowing,
this
upturn
especially
rates.
corporations
is at the lowest point in 15
years,
due to heavy drains upon their
our
they
with
banks, because
provided at all times
excess
are
With new bond issues offering
higher average yields than stocks,
and with the outlook for
corporate
profits
clouded, there has been a
considerable revival of buying of
corporate bonds among individual
investors.
There
has
also
been
much
in
reserves
increased
their
large
se¬
almost
$70
curity .portfolios
billion.
by
'
-
Conversely, if the Reserve banks
had not held down member
their
market
open
to, force
as
borrow
operations,
commercial
to
banks, there would have
far
greater expansion of
lending to satisfy the enor¬
a
bank
demands for credit that have
mous
developed.
Following the turn of the
the
so
banks
heavily from the Federal
Reserve
been
bank
in the past two years by
reserves
Federal
Treasury
Reserve
bills
and
term
securities
added
reserves
to
year,
banks
other
sold
short-
mop
the
up
that member banks
obtained from the usual post-holi¬
day return flow of currency from
circulation and from
nation's
gold
ber
thus
made
banks
aged
to
gain in the
stemming
a
stocks
from the Suez crisis.
banks
The Reserve
that
sure
would
not be
*
mem¬
encour¬
their loans
expand
investments because of
in
reserves.
an
and
increase
.)
*
.
But it cannot be
emphasized too
strongly that Federal Reserve pol¬
icy is subject to change
advance
notice
Spokesmen
without
at
any
time.
system
the
for
have
asserted
repeatedly
that
they
operate on a "day-to-day" basis,
and
that
they
will change
its
just
soon
as
changed
as
conditions
call
such
for
action.
They seek to "lean against
wind," as Chairman Martin
the
has said.
A shift in
will
wind
the economic
bring prompt shifts in
Whenever
is
there
clear-cut
that
building
activity
business spending have turned
and
downward to
an
extent that would
assets..
serve
Strained
liquiditv
makes
it necessary for many concerns to
borrow more even for purely tem¬
porary
we
be sure that Federal Re¬
policy will veer from re¬
may
straint to ease,
just
it did with
as
such notable effect in the summer
of 1953.
needs.
But total expenditures for
The Federal Reserve System, in
plant,
inventory and receivables, rather
other
than mere seasonal fluctuations in
operating in
words,
requirements, will determine how
is
much
is
not
free
a
agent
Rather, it
vacuum.
a
siderations
to
money
borrow
business
from
will
banks
have
and
the
market
with
strong
have
this
1956.
reasons
seen,
snending
to
that
will
year
And
as
believe,
total
register
com¬
there
as
are
we
sizable
ventories.
To
a
a
be
realistic,
new
we must recog¬
trend away from
stringency in the capital markets
may not prove to be a one-way
street.
when
There may well be times
tightness will return for a
while.
and
recession
occurs
is seri¬
or
ously threatened.
This
mfeans
mortgage
lessened
supply
nize that the
restricting credit in
expanding
credit
by
boom,
when
business
a
required by law and policy con¬
to promote economic
stability
both
a
that
demand
funds
in
turn
a
caused
market
of
the
by
a
increased
or
an
is
likely
to
be
magnified and accelerated by
shift
from
restraint
Federal Reserve credit
to
ease
in
policy.
With Keller Brothers
(Special to Tnt Financial Chronicle)
by trust companies and investment
lesser
counselors.
time,
business from banks and the bond
BOSTON, Mass. —Albert Datz
has
joined
the
staff of Keller
Brothers Securities Co., Inc., Zero
Court Street. He was previously
savings
market, and heavier absorption of
with
in
shifting from stocks to bonds
personal
holders
of
investment
At
the
United
accounts
same
States
But the current
a
prospect is that
smaller rise in mortgage debt, a
increase
in
borrowing
by
B.
C.
.
amount,
government
spell the end of the business boom,
drop this year, especially for in¬
issues that
the average.
govern¬
the Treasury-
cash resources last year to finance
the
enormous
spending on new
the
to make up
that
Between 1941 and 1945, the
evidence
h'quiditv of
bond
outstanding
purchases of
*
Re¬
policy.
pared
used
by
commercial
in connection with the quarterly
tax payments in March and June.
yield was
higher at 3.99%. New offerings of
bonds, moreover, have provided
substantially higher yields than
bond
reserves
could expand its debt by over $200
billion
without
raising interest
economic
development that could
the
the
and
exam¬
being provided freely
additional
policy
market.
stock
3.90%
caused
heavily
concentrated
Government ob¬
in the relation of stock to
yields.
cember
estimated $6 bil¬
accounts
billidn.
mous
curred
a
receivable.
was
States
spectacular
than
Last year, corporate inventories
increased by
$8
A
bond
plant
occurred
United
ligations and tax-exempts.
second
last year.
But
buying
the United States Treas¬
,
only because member
The
mortgage market is the revival
of
in
or
ury chiefly
banks. This
year
the
capital
past
Individuals
True, business spending upon
plant and equipment is still at
pected
FNMA
*
seen
subtract
or
were
with
we
check it.
ease
some
mortgage and record business bor¬
squeeze
bond
available for the mortgage market.
combination
market
borrowing by business
whether from the banks
that
trend
borrowing this
year. This is extremely important
because, as we have seen, it was
rowing that
money
new
petition from this
decline in business
the
some
to
were
clearly see forces
at work that will bring about such
a
turn, new developments may oc¬
cur
at any time to postpone or
able funds, and leaves more funds
current
could relieve the
is
Borrowing
securi¬
market.
this year,
rates is lessened.
government
easing of conditions in the
interest
on
more
ties, and this will make for
have
we
was
-
ly to
as
add
to
During World War II, for
turn in trend.
Even when
.
possibility of an accompanying
change in Federal Reserve credit
policy. '
ment securities
on
demand for and
mortgage
of 1957. /•*'
Up to this point, we have been
discussing changes in the demand
for and supply of investment funds
in the capital market without taking into account the ever present
serve
Timing the Turn
;
for
course
Change in Federal Reserve
-
banks
for mortgage
trend towards
a
market
during the
ple; it
u
been
loans
institutions. These institutions will
thus have more money available
turn
cline in stock
easier
an;
savings flowing into financial
capacity^ More¬
of the year
over,
bonds by individual investors will
combine to create
rather than, in from the supply of loanable funds
correspondingly" through expanding or contracting
from the bond the reserves of its member banks.
is
market for the limited
new
Thursday, March 21, 1957
^
ample
extent
in
stocks,
less
mortgage, loans
more attractive
relatively
them
also
announced
that
they
are
the mortgage market.
outstanding loans in¬ deferring
plant and
equipment
For example,
Congress is giving
crease from year to year. Hence, it
projects. For the most part, how¬
consideration
to
reducing FHA
is logical to expect a considerably
ever, such projects, once
under¬ down
payment requirements on
smaller
net
rise in
outstanding taken, are carried to completion.
houses and to raising the present
mortgage debt this year, perhaps Hence, some time
usually elapses 4M»% rate on
VA
guaranteed
not much more than $13 billion as between
the
adoption of more
mortgages.
Also, the borrowing
compared with the $14.8 billion conservative
spending policies by authority of the Federal National
total of 1956.
business and an actual decline in
Mortgage Association may be lib¬
The fact is that, while mortgage
plant and equipment outlays.
eralized. In that event, mortgage
borrowing
continued
heavy
in
Regardless
of
the
near-term debt might increase by a larger
1956, the trend in new loans had
trend in plant and equipment ex¬ amount than we now have
reason
turned down at the start of the
penditures, the slackening of in¬ to expect.
year.
The increase in outstanding
ventory and receivables expansion
However, the increase in the
mortgage debt was $1.3 billion less
alone should reduce total business
FHA insured mortgage rate to 5%
than in the record year 1955. And
borrowing requirements as com¬ late last year, had little effect
the smallest increase was reported
upon
pared with 1956. However, this is the volume of home
lor the final quarter of the year.
building. At
likely to be reflected more in a best, it will take some time to
get
Mortgage borrowing constitutes
slackening
in
bank
borrowing builders to embark again on new
by far the largest single source
than a reduction in bond financ¬
residential developments for vet¬
of demand for funds in our capital
ing for the time being, due to the erans on a large scale.
Also, if
market, accounting for a third of
tight lending policies of commer¬ money is provided builders
the total rise in debt in recent
by
cial banks. But lessening of busi¬
FNMA or by direct Federal lend¬
years. A material reduction in the
ness
demands
upon 'commercial
ing', the funds will be raised by
absorption of funds by mortgage
banks reduces pressure on them
selling short-term obligations of
borrowers contributes substantial¬
payments
vol¬
borrowing.
dificulty and
of 1956
business, This is
loaned, despite higher-prices. More, especially true where sales vol¬
recently, .also, there have been ume has been disappointing, so
mortgage
in
,
,
which
ments
expansion
of
the
■
.
.,
as
reasons
of
Borrowing
building
partial offsets ments watch closely the rate of
to the fewer housing starts.
But, return earned on the investment,
as
the
mortgage stringency has and will be less willing to spend
become more acute, lenders have on new facilities if
profits do not
come to look for larger down pay-*
keep pace with new capital in¬
building
today would be higher. A stronger
demand from individuals was re¬
and
and softness in sponsible in no small part for the
prices of copper, lumber, textiles, brisk buying of recent new issues,
steel scrap and some other Com-' with many of them now selling at
premiums. As fewer bargains in
modities.
<
*
*
- 1
Perhaps most persuasive of all, corporate bonds are offered finan¬
home
corporate profits in the final hql|
1'
Last : year,
higher prices for
homes and the rise in commercial
penditures
A
an
borrowing., Perma-r
financing is usually consum¬
mated on the completion of build-
mortgage
look below the
now
reduction
actual
mortgage
A
Hence,
decline
a
commodity
markets.
man
starts
in
between
nent
re¬
Reserve policy,
savings has not
been relieved by an expansion of
the
lag
a
in
*
While builders and corporations
have
usually
been.cashing them in
large volume and reinvesting the
proceeds in marketable bonds at
,
as
expanded
In addition,
bonds have
\ ;t
managements.^ re, canfrontegl with higher yields, .
Were it not for the broader de¬
a
flattening out of the curve of
mand for new corporate bond is¬
general business activity, for there
sues
are sagging tendencies in such im¬
by individuals, bond yields
Factors Indicating
Tarn in Mortgage Market
1954,
surprising.
Chronicle..
Morton
&
Co.
,
Volume 185
Number
5622,.
■
The Commercial and Financial Chronicle
.
.
i.
il
n
+37
(1357)
25
v>
First Boston Group
Offers Borax Shares
Continued from first page
-.what is often termed the "times" and
accordingly. We have
that the colonial powers had—even
~
The First Boston
Corp. and as¬
sociates offered publicly yesterday (March 20) 150,000 shares of
United
Corp.
$45
States
Borax
stock
common
«?ntly
outstanding
General
-
"It
(par $1)^ at
is
and
,
terests
_
sold for the account of certain in¬
vestors who will remain substantial
stockholders
after
the
sale.
in
the
cal
,
company
.
Chemi-
&
Corp., whose best known
con-
♦
,
sinner
product is "20 Mjle Team"
borax, is the. world's largest pro¬
ducer
of
products, princi¬
borate concentrates, borax
boric
acid,- and . owns
at
Boron, Calif., the world's largest
known; deposit of sodium borate
ore.
It is also the second largest
;
•
for
its
business
borax
lish-owned
as
company
its
practice of the Kremlin
outgivings make it distressingly
means
of communication and the world
the day
even
coined
the
were
war
times, and
never
before has
as
we
even
a
follows:
would be
tion propose to
(from
sures
that after the Israeli
blockade
Board
The
withdrawal, there will be
Board
Governors
of
reelected
H.
T.
R.
have
three-year
Greenwood
wood &
of
to
of
members
of
H.
T.
the
been
terms:
Green¬
Company; R. Y. Guarniery
Y.
Guarniery & Companv;
Henry R. Hallowell of Hallowell,
Sulzberger
&
Comnany;
S.
K.
Phillips of S. K. Phillips & Com¬
pany; George E. Snyder of George
E.
Snyder & Company; Edward
Starr
III
of
Norbert
Drexel
W.
&
Markus
Company.
of
Barney & Company became
governor of the exchange.
Smith,
a new
Forms Jonathan & Co.
LOS
man
ANGELES,
Rothbard
B.
securities
at 6399
conducting
from
Wilshire Boulevard
the firm
name
Mr. Rothbard
Daniel
is
business
Calif. —Her¬
D.
a
offices
under
of Jonathan & Co.
was
Weston
previously with
&
Co., Inc.
Call
Drive
from
1
Now,
no
naturally,
we
have
no
way
of knowing
further in the
squabbles of this troubled portion of the
be taken for granted, moreover, that if we
not
prepared to take steps of this sort, our influence
there and elsewhere in the world will be limited—just at
a
time when
we
have taken upon
ternational affairs far
ourselves a role in in¬
beyond any historical precedent.
Many Difficulties Ahead
And
we
may
as
well expect to continue with little
interruption to face difficulties which are both trouble¬
and
baffling. It is often said that we are now under¬
taking (or at the very least should undertake) the role
played historically by Britain in the international sphere.
But, of course, the fact is that we have no such long back¬
some
firm
BEVERLY
name
ated with T. R. Peirsol &
Monica
Santa
R. R. Weith
Opens
Richard R. Weith is
securities business
a
68
at
Fifth
Avenue,
New
BURBANK, Calif.
York
T.
Montmeny
Nielsen
Two With Boren
&
is
Lawrence
—
with W. G.
now
Co., 912 North Holly¬
wood Way.
'
f
(Special to The Financial Chronicle)
offices
City.
Co., 9645
Boulevard.
With W. G. Nielsori
engaging in
from
HILLS, Calif.—Rob¬
ert E. Lehnherr has become affili¬
(Special to The Financial Chronicle)
BEVERLY
HILLS,
Calif.
—
Three With Creger
Charles R. Bloch and William M.
-
Horstman
have
Co., 9640 Santa Monica
joined
the
staff
Boulevard.
(Special to The Financial Chronicle)
Lloyd Arnold Adds
Calif.
HOLLYWOOD,
—
ground of experience in these matters as had Britain, and
fully as important there is no role of the sort left
to play in international affairs. Britain was an enlightened
what is
C.
have
Peterson
become
affiliated with J. D. Creger &
6435
BEVERLY
Sunset
Boulevard.
HILLS, Calif.—John
M. Treanor has been added to the
Joins First Calif.
staff of Lloyd Arnold & Company
404
Drive.
Camden
North
(Special to The Financial Chronicle)
V
H.
Albert
Week
&
passed
age
Week,
Carey,
March
away
a
in
City,
York
16th
LOS
the
at
brief illness.
ifornia
the
is with First Cal¬
Incorporated,
Company,
647 South
of
Calif.—Fred¬
ANGELES,
erick F. Gregory
partner
New
of 64 following
Spring Street, rnembers
Coast
Pacific
change.^
Stock
»v
"
THE BALTIMORE AND OHIO RAILROAD CO.
130th
Annual
Report—Year
1956
Comparison
With 1955
Year
From
of
transportation
mail,
( + ) Increase
1956
passengers,
(—) Decrease
freight,
express,
etc.
+ $33,423,279
$465,464-696
From other sources—interest,
dividends,
rents,
etc.
7.746.340
....
440,574
—
+ $32,982,705
$473231.036
Total income
rvnpndjtures:
Payrolls, supplies, services, taxes
Interest, rents and services
Total Expenditures
.
.
.
.
.
.
+ $28,894,811
$406,718-960
36 473-815
.
2,031,585
—
+ $26-863.226
$443,192-775
*
hrome:
For improvements,
sinking funds
The full annual dividend of $4.00 per
stock
was
+ $ 6,119,479
$ 30 038 261
and other purposes
he preferred
improved earnings
the common stock to
share
on
I
paid quarterly during 1956, and
increase in the dividend on
share, which was paid December 27, 1956.
justified
an
$2.50 per
decreased $2,029,097, compared
1956 from the 1955
refinancing. Since August 15, 1938, there has been a net reduc¬
tion in
long-term debt of $193,054,394. In the same period
Interest
with
on
long-term
debt
1955, reflecting the saving realized in
annual interest charges have been
In
1956 the company
added
reduced $11,917,912.
more
than 2,000
new
freight train
At the
owned were unserviceable,
compared with 6.6% at the beginning of the year. Additional
freight cars on order and continuation of the repair program
should provide an adequate car supply in 1957. At the end of
1956 Diesel power was handling 86% of the company's freight
traffic, 99% of its passenger traffic, and 83% of its yard switching.
cars
to
its fleet, and
end of the year
such things go, but Britain was always
looking after the interests of Britain. Her real contribu¬
arose
Co.,
(Special to The Financial Chronicle)
colonial power as
tion to world affairs
Willis
Lindsey, Alvin E. Onstad and
B.
Income:
world. It may
are
15
at
Company.
restrictions
the
precise accuracy of these assertions, and hence the exact
degree of warrant of the questions raised. It is clear,
though, that as a result of our strenuous efforts to pro¬
mote peace in the Middle East we are now being called
upon to take steps which must, it would seem, involve
us
the
under
of The Sands
offices
as¬
Secretary of State, in persuading Israel to with¬
draw from Gaza, indorsed the March 1 assumptions on
Gaza outlined by Mrs. Meir and carefully checked their
formulation. The chief assumption was U. N. control, both
civilian and military. How does the United States propose
to promote this objective"?
The
of Governors.
following
business
against Israeli in the Suez Canal
and the Gulf of Aqaba; and that if these restrictions oc¬
cur, there will be firm action by the society of nations.
What action does the United States contemplate?
>
Board of Governors of the Phila¬
the
ties
redeem their undertaking?
"The President has stated that the United States
Meeting
Jr., Newburger & Co., as President
of
the
Philadelphia-Baltimore
Stock Exchange. Mr. Newburger
will again become a member of
Ira
Albert H. Week
promised to insure that after
Gaza and AqabaF there
greater tranquility than before. The opposite is
withdrawal
Joins T. R. Peirsol
(Special to The Financial Chronicle)
ROCKAWAY, N. Y. —
Sands is engaging in a securi¬
Clark
the case.-How do the President and the Administra¬
now
Phila.-Balt. Exch,
delphia-Baltimore Stock Exchange
held its organization meeting for
1957 on March 20, 1957. J. Ray¬
mond Leek of Bioren & Company
succeeded
Frank
L.
Newburger,
Sands Co. Formed
EAST
'
Israeli)
a
.
our discomfort that there are
troublesome penalties of an active
more
"The
—
as exist
today were not available. ;
large role in world affairs, though, '
and we can only hope that we may find the wisdom and :
have the good fortune to be really helpful.
1
'+
We have assayed
*
in world politics.
"President Eisenhower
.
Pa.
most of these situations
;
finding to
are
even
practice
are
(the
and
4,175,000
stock, par $1.
PHILADELPHIA,
.
of Boren &
a
as we have now
assayed
playing with vigor if not always with success.
Take for example the challenge issued by* a? spokesman
for Israel the other day. He is quoted in the
daily press
and
$19,100,000 in long - term
debt;
144,895 shares of 4J/2% preferred
Holds
peoples—usually parts
empires—have .learned to play one great power
off against another in a
way and in a degree that was
quite unknown even a half century ago. Competitive em¬
pire builders were always present aplenty, of course, and
they often clashed in one degree or, another., These rival
interests at times worked definitely to the
advantage (if
"it was an
advantage) of coveted peoples and their re- :
sources, but such opportunity and such skill to make the -
are
we
difficult also by reason
more
of older
;
role in international affairs such
and
common
of
historical
other and
988,580, which? is before a special charge ■ for extraordinary obso-;
lescence loss due to planned plant
shares of
r
enlightened Britain.
a
Our problems are the
"psychological warfare" to characterize such efforts
common
$45,026,853 and net income of $5,-
$100;
•'
upon
31,
mining charges.
As of March 1, 1957, capitaliza¬
tion of the company consisted of
Series
country with which the attacker is at peace is hardly
1956, net sales amounted to $50,493,901 and net income to $6,777,439. This compares with the pre¬
vious fiscal
year's net sales of
par
*
national industries i
government devoted more energy to such tactics as
these in either peace or war than does the Kremlin
today ;
and certainly this practice of vitriolic attack
Eng¬
May
on
of
nature
these. But those
But
an
)
sense
of the fact that so-called backward
in¬
any
1956, merged with United States
Potash Company on July 2, 1956.
On a pro-forma combined basis
for the fiscal year ended Sept. 30,
stock,
the
term
acquired
from
a
government, and in World War II
substantial reduction in
which
own
converting world politics
into something that
closely resembles massive ward poli¬
tics. Of course the idea is not exactly new. Woodrow Wil¬
son in World War I made
great efforts to reach the people
of Germany over the heads or under the feet of their
transportation costs.
company,
market in their
common
the deteriment of the
clear that modern
is undertaking a
expansion and devel¬
opment
program
scheduled for
completion in July, 1957, which
includes
shifting
from
present
underground mining to open pit
mining, and the construction of a
new concentration plant and re¬
finery at Boron.
In addition to
operating economies expected to
result from this program, there
The
and to
organizations
company
a
de
This is another in the
and
$20,000,000
;
Pont
the Russian dictators desire. This
ash products for 34.2%.
will be
du
long series of diatribes offered
from time to time
by the Kremlin masters in the hope
of
getting behind the governments of friendly nations to
the rank and file, persuading them to take action which
65.8% of net dollar sales, and pot¬
The
using the
are
Another in
"k
*
lease, substantial deposits of
potash ore in
the
vicinity of
Carlsbad, N. Mex. During the fis¬
cal
year
ended
Sept. 30, 1956,;
accounted
in the
serve
sort of pro bono publico affair-—which the
world finds difficult to
accept or to understand.
:
domestic producer pf potash prod¬
and holds, principally under
products
and
■
ucts
boron
is
boron
pally
arid
Oil,
France, Italy and the other member countries. No one
can
dispute the undeniable fact that advantages and prof¬
its-in the capitalist world are distributed
according to
the strength of the competitors which is determined
by
the extent of the capital, and this
strength is on the side
of large American and West German
monopolies first and
foremost."
_v.r:
1 •
••+•••
part of theproceeds will be received by the
United States Borax
Standard
Our interest is
now
of
No
company.
Ford,
active in every one of these countries.
obvious that American monopolies and cor¬
are
porations
*
being
Motors,
Nemours
The stock is pres-
share.
per
:
Chemical
&
shaped her troiifse
"interests" to
no
•
accelerated its
only 3.7% of
car
repair
program.
cars
President
out of the fact that she had the
foresight to understand the drift of world opinion and of
i
Ex¬
26
(1358)
<■f
The Commercial and Financial Chronicle
.
.
Thursday, March 21, 1957
.
:
Continued
jrom
of the traffic
peting
Railroads: Their Fatnre
tion but their over-all costs.
dustries
burden
of
revenue
at
have
would
to
bear
the
And,
under present conditions, if they
cant get service they need from
public
carriers, rail,
motor
or
•water, the larger shippers are able
the
to
To
tions to "meet" competition would
up,
reducing rates without
improving service does not begin
involved, from
comduced brake shoe wear and, with,
of t transportation, its better control of slack action,
which of course is hardly likely, has reduced
damage to lading and
they could have .added, only .$1,- equipment. Welded-Trail. not only
228,879 to then gross revenue; $l,r- reduced track maintenance 1 -but"
109,359 of tnis amount from water increases track life,.improves rid-
6
page
necessarily produce rate dispari¬
ties between competing shippers
provide it for themselves.
sum
to solve
problem
transportation.
now
Misconception
is
any
facing
Of
»
$119,520 from
motor competitors. This represents
only eleven thousandths -of one
keeping overall rail
adequate level.
an
importance
greater
e.ven
drastic
that
fact
carriers and
is
reduc¬
rate
percent
a
mere
the
of
total
may
bouraged coordinated service each
step of the ^;ayj" They-have begun
la-associate with
other
media
of 'r
transportation either, in. combination-or-T hrough coordination,
ing quality and perm its v greater
speed. Centralizedrtraffic control,: Instead' 6f thinking in terms of orautomation in
classification-yards, thodox and conventional railroadautomatic electronic train ddentiing, they are
broadening their
fication, train radio corhmunica-* Outlook and beginning to give vi~
tion systems, use of closed circuit tality * to
transportation' service,
revenue-;of
-
on
the right track, and I
add that the l. C. C. has en-
^now
forms
-
railroads for the year 1956..
t
The actual loss of net railway
operating
revenue,
making
the television, automatic Ticket sell- This is the real
key to their fuviolent assumption that the rates
ing, improved billing "procedure ture. ?^
^ ' "~'v
^
have, and those who don't were compensatory and as profit- and maintenance of-car record
ac-„,
'*have, the service of other carriers. able as the average of all freight, counts, automatic hot box detec-' '
Steps of Improvement
*
From the very beginning of pub¬ i.nd
again assuming that the.ship-, tors, r p 11 e r.
bearings^ingenious
Only by such steps can they
lic transportation, shippers' chief pers gave them every
pound of machines for replacing track ties
help produce the best and cheap—'
concern has
been with rate rela- freight
involved, would amount to and laying; track,V,Adapto and' est service to- the
public at a
tionships which would assure, $299,846.
Now these are all lib- other types of equipment for all >greater and more secure
future for
them access to competitive mar¬
eral, maximum computations, purpose loading; all of these inr themselves and all of
public transkets. This has been far more im¬ Now, I ask
you, is this strangulanovations make for greater effi-. porta tion. These
^
who
.
law
•
and
No.
that
Commission
the
umbrella
an
4
the
hold
rates of modes
over
of transportation which compete
with the railroads to the
detri¬
ment of the public.
This
requires
preliminary discussion. One
the major legislative recom¬
some
of
mittee
Report
that
3s
the
the
of
the
further
restraint
long
as
of
be
could
selected
out-of-pocket
cover
Act
carriers
reduce
without
provisions
Commerce
that
so
Com¬
Transportation
on
present
Interstate
amended
Cabinet
rates
-
they
as
There
costs.
has been much talk that the Com¬
mission
of
did
posal
of its
of some
tion
Committee
it
because
pro¬
"clip"
would
it
The posi¬
powers.
Commission
of the
with ref¬
this change is based on
to
erence
this phase
not favor
Cabinet
the
entirely
different reasons than
motivating motor carriers,
those
water carriers
Carriers
or
railroads.
primarily
are
con¬
cerned with advocating what they
think will benefit them.
There
is
nothing reprehensible
in that.
that they should. The
It is natural
Commission's
position, however,
as governed by its concept of the
over-all public interest. To make
this proposal for greater freedom
in
competitive rate making eu¬
peptic, the generality is advanced
that it wflrnld "benefit the public;"
or,
as
"Fortune" magazine improvidently put it, that the pres¬
ent system "forces the nation to
pay billions more than it needs
to
for
transportation."
Let
us
test the Validity of such notions.
tion?
Is
this
gross
interference
of rates.' with managerial discretion? Does
Every shipper and traffic man this constitute arbitrary allocation
knows that. And every time rail¬ of traffic? Is this
holding a "wide
roads
protest
proposed
railroad's
another
reduction,
though
even
compensatory, their principal
and
benign umbrella"
carriers?
Is
magazine
ar¬
this
what
gument is that, in order to main¬
heavily
tain
kind of state-run cartel"?
market
regulated
of
light weight
equipment, also dome
industry,"
vastly
"a
attractiveness
ice.
of
ph&senger
of achievement in
of
in
short
In
railroads
obvious that the proposed amend¬
ment
would
recreate
conditions
which
existed
in
1887
when
the
difference
dispute
in
the
and
the
going
The
v
rates
rates.
other words, the amount the publie—the shipper s—could have
the
original act to regulate commerce
was passed, besides
setting in mo¬
saved through these proposed rate
reductions.
How
much
do
you
tion
think that amounted to ?
Exactly
$378,170. To say that $378,170 is
"costing the American public bil-
.
deterioration of transporta¬
a
tion services.
Any
fair-minded,
disinterested
many rail
people who acknowledge it, knows
and
person,
that
there
solution
the
Cabinet
Its effect
public
offered
by
would
carriers and the
be
disastrous.
sponsibility to the public, to
it
vent
from
is
fantastic
and
closely
with
counsel,
railroad
before
they
experts
,
turned
public
relations
tion
in
seriously
public
will
show
that
result,, has
a
managed, have
in the
even
.
en-
done
as
flourishing
a
Follans-
transporta¬
tion.
There
tion
general.
/in fact,
ponents
been
Tbe
-t
,■
-
future
of
the
of
•
is
-
have
engaged in the
owned
trailers
fact, the level of rates
the
only facet to this prob¬
lem, the best ally the trucks have
were
when
The
costs
rails
go
up
ask
the
are
for
the
secure
in
If
such
were, in fact, the real
the economics of inflation
answer,
would
succeed
railroads
are
now
obtain
carriers.
roads
doing for the
they claim they
what
prevented
even
vantage
in
from
greater
high
over
doing—
price
cost
ad¬
motor
Furthermore, if the rail¬
were
so
anxious to "benefit
the public" through reduced
rates,
and the
subject were that simple,
do they oppose other rail¬
Why
roads'
rates?
that
efforts
The
to
reduce
answer
specific
is, it just isn't
simple.
posed rate making freedom? Dis¬
regarding whether they would be
those of powerful shippers or lit¬
tle
shippers,
we
must
remember
that the Interstate Commerce Act
was
originally passed to prevent
special treatment for the select
few.
At
any
rate,
reductions could
shippers,
some
since the rate
apply to all
not
shippers,
some
in¬
in¬
severe
regulation.
But
railroads have accomnlished
what
facts?
said
by
the
are
times
many
I
before
have
that
there
is
plenty of freedom to compete; that
the I. C. C. does not initiate
the carriers make their own
rates;
rates;
and
have
in
ades.
the
preceding three decaccomplishments in
Their
this respect have been formidable.
not yet been universally
petition
all
and
disturbance
relationships.
often
I.
C.
and
C.
agerial
making
to
C.
C.
what
rate
see
let's
how
degree
the
interferes with the man¬
discretion of railroads in
rate
Railroads
I.
Now
of
an
changes.
alone
file
the
of over 3,000
working day of
During the year 1056,
average
rate
changes
the
year.
Even
though these advances have
railroads
those
every
the
applied by
advantages-to
progressive railroads which
flat cars, they have made andistinct gain. It'has given
ter
an
opportunity to give bet-
and
faster
service
transportation.
"
v
of
trailer-on-flat-car
Some
so
of
them
motor
have
service
as
separate and exclusive."
railroad, is a railroad.''Some old
timers regarded the identity of a
a
tation. And this characteristic still
Prevails
only
not
among
some
are
whereas
ers-on-flat-cars
carriers.
able to add
rail
owned
service-is
other forms
However, we
lost.
The
fourth
complete
ices
with
step is to work out
combination
every
transportation.
protest
Commission
after
by
competing forms of
transportation?
Ten
thousand?
Two
One
thousand?
hundred?
twelve.
was
how
thousand?
Just
railroads
have -been
squeamish
about entering into through routes
advances. It would
flexible
service
permit
from
much
that
these
able to
fluid,
point
rails.
This may change the present pattern of traffic with its at-
problems but the ultimate
.
cations
Even
C10us system rather than a collecU°n
individual carriers of vari-.
tances
ous types.
to be made at locations off the rail
more
dramatic improvements
imminent
are
now
since
the
railroads
engaging in research
to
continue this forward progress. To
give
a
comprehensive list of what
in
describe the effect
on
their opa
speech
itself. I
shall recite only a few,
examples of how far-reaching
these improvements are.
as
The diesel has not
greater
tractive
cause
of its
traffic
nated
the
only provided
but, beflexibility, has elimi-
need
power
for
investment in
Railroads
own
most 21 million
collectively
acres
al-
of land. This
more
land than there is in the
nected up in a private right of
which links every center of
population from coast to coast and
way
border to border. This constitutes
^ tremendous physical asset for
themselves and the nation. To
make the fullest
use
of it, railroads
standby locomotives for should recognize that our ecoclass of service, as was the. nomic geography is not the same
with the steam locomotive. as ft was a quarter of a century
"Shippers
to
-
While
some
cautiously
,
of
them
temporizing,
are
they
still
are
of
-
applicertain
commodities long dismerely because delivery is
these
points by joint service
with
existing
motor
carriers,
thereby retaining the long haul,
maintaining the identity of each
form of transportation and elimmating the need of another eompetitor? They resist the shippers*
needs right down to the last ditch,
a
motor
carrier
grant in such
is
cases
roads'
or m°re «go.
movement
Why couldn't the rails find
of providing through service
ways
each
If
endorse
heads.
and
case
for
often
of
types
separate
rate
changes More powerful gas-turbine locothey had been motives are now a reality. The
obtain every single pound diesel has
greater wheel life, re-
unlawful?
a
any
leadership in making transportaHon truly a functional and effica-
exactly
in
these
twelve
other words, how
badly
were
the railroads
by our
In
finding
were
No.
involved
cases?
hurt
Now
One
serv-*-
the predominant agency of trans- of 1953, I made the following obPort, they should properly take the nervation:
whole State of Maine. ■ About 4
million acres of this land is con-
the
of
existing form of
Up until now the
transportation, pattern would be efficient, ecoare here discussing nomical and logical,
*be Par* railroads can serve in the
Furthermore, it would make uncause
improving their future, necessary the issuance of some
In my opinion, because they are motor carrier certificates. In May
to
by
trailessen-
,of
orations would be worth
were
By
new
comb equally applicable to. connecting lines, the full benefits are
railroaders but among members of tendant
how many rates out of the
million
lawful
fur-
a
Unfortunately for them and the and joint rates with independent
nation> for too long a time, the motor carriers,. There is only one
railroads' attitude suggested the railroad in the entire country
Peculiar reiteration of the poetry which has done so. Yet common
Gertrude Stein. Instead of "a sense dictates that this is the one
rose, is a rose, is a rose," just sub- way that public transportation can
stitute, if you will, a railroad, is make substantial and impressive
or
changes filed by rail¬
adjudged to be un¬
advantage
service,
taken
common
doing, they
traffic
a
In the light of changes in transportation conditions/the railroads
can. no. longer
look upbnvtheir
is
rate
less
be circumscribed, in my tially * limited to traffic already
opinion, only to the extent to within their control. Until these
which their thinking remains pat- steps are fully perfected and be-
they have done in this respect and
more
with
damage and handling to shippers
who need and want -the
have pioneered, and to the public,
are
impressive
and
rewarding.
are
with
more
of innovation, modernizaimprovement than they
tion
that all the I. C. C. does is to
pre¬
vent rate wars, break-neck
com¬
roads
The question arises, whose rates
be reduced
by this pro¬
would
rather
a
rail-
containers
iailroad as sacred and singular, to any point in the country. But of
to be Preserved as a separate" and even greater value, it would dedistinct form of transport at any velop new sources of traffic at
some' of their present attributes. cost and not to be sullied by deal-' hundreds of points off line and
Within the past several
years, the inSs with other forms of transpor- open dozens of new gateways-for
transportation
rails.
increases
first, the trucks are then
asking for theirs.
Now that is
dictment of the present system of
of
use
or
>•
rates? If in
is
of them
can
terned after that of the canal operators of the nineteenth century
dynamic competi- —to wit: blind, unyielding opposibut what the pro- tion to anv new developments in
-
This
some
with
railroads
is
this
To the extent that
step to provide trailer-onflat-car • service in combination
bright — I was going to use the
word "brilliant;" it would still fit.
It
eliminate
or
runs.
ther
.
.Predicts Bright Future
-
reduce
passenger
them
not
business, there is
on
up re-
schedules and
step.
one
have
years of their hisThose poorly situated or not
But
on
other
choice, without permitting
disruption of sound transporta-
a
losses
improved
them
of
bee.
the
Commission has been very liberal
undermine
and
to
The railroads' profit po-<
Some
■■
unprejudiced examination of
decisions
our
long
would
thereby
joyed the best
u.
An
pre¬
getting
brook which the writers of recent; in
permitting competition to have
magazine articles and others the frebsCand fullest play so that
would recklessly incite. Such an the
public will have available to it
experiment would not only not the cheapest rate by the carrier of
benefit the public but in the
its own
railroads
passenger
on
steel
mail
maining
paid off.
well
and
trains; has helped to speed
that
road
as
less-
express,
has helped them to do
with unprofitable passenger
away
has helped Ihem and will continue
to do so. This progressiveness has
sition,
placing
indicates
conscious of compe-
are
trying to meet it
only pricing methods but
by giving better service. All this
greatly.
by
comparatively
which
are
great record
a
a
loose.
re¬
slugged in
this potential, "toe to toe"
donny-
run'
to
and
well.
too
attest
by
tory.
commerce
The
Commission is trying to meet
dollars"
trains
than-carioad freight
enumeration of these trucks;
time,
tition
not
suited
legislation is
fraught with dan¬
on
of
mere
advances
egregious exaggeration, to put it
mildly. It may be that those who
inspire such articles have not con-
the
Committee
impractical and
ger.
lions
are
serv'
needed rail
be
serv-
ice by motor which is auxiliary
and supplemental to rail service
coaches, double deck cars has already'produced substantial self-propelled cars have'benefits. It has permitted railroads"
improvedf the quality and to eliminate many way freight •
However, there is an even more
telling figure. It is a computation
It should
cars,
Substituted
slumber
relationships, the re¬
duction will inevitably spread
thereby unnecessarily dissipating
revenue.
pas-
and progressive.
and. Budd
"a
as
The introduc-
modern
senger
"Fortune"
describe
can
tion
other
over
legislation don't
living in an in¬ Misconception No. 5 is that rails.
realize is that it would give comare
now
flationary period. No individual,
shackled by adminis^
petitors the opportunity to dynano
trative limitations on their abil¬
industry, is immune from in-,
mite competition to the disadvanflation.
The
increased costs of
ity to compete.
tage of the public.''>"•/*.;
labor, material and supplies af¬
This
one
is
variously stated:
As I said at the outset
much
fects us
all, including carriers. that
"outmoded, archaic regula¬ more could
be said about the misHowever, labor costs constitute tions established when rails were
at least as large a proportionate
conceptions which I have enumera
monopoly," prevent "dynamic ated
and others I could mention.
item with trucks as with rails.
competition;" that the Commission Within the limits of
this discussion
If it were true that the present
by its administration of the law
I have tried to
law is permitting expensive truck
weigh the foregodivides traffic among various
ing few on more accurate scales.
transportation
to
supplant
rail forms of
transportation on some
\
transportation by holding an um¬ "fair share"
theory; or again, that
Present Attributes
brella over truck rates, why do
the J'dead
hand"
of
regulation
Before proceeding to give you
rails
enhance
the
trucks'
com¬
stifles managerial
discretion, and my views on the prospects of railpetitive advantages by raising the so on.
roads, I should like to describe
general
level* of
existing
rail
We have
ciency at less cost.
than the level
economy
.,
steps are various
portant to them and the national
misconception
mendations
.
five
sometimes
inappropriate
attitude
for
more
uneconomic
but
leaves
no
the
rail-
alterna-
the
shipper. It becomes
imperative, therefore, for
leaders
to
study
transportation
every
means
of
coordinating
di-
Volume
185
Number 5622
services
verse
equipment,
by
.
.
The Commercial and Financial Chronicle
.
developing
facilities,
units,
con-'
tamers, and other devices to per¬
mit efficient and easy
between them.'
Since
almost
that
:
rates.
years
made
rails have
ago,
this
In
opposed hundreds of applications
engendered
fears by
Yet, in not
one
they try to work out
for
public.
This
motor
renewal
a
water
service
ficient
joint
the
re¬
sively.
the past 10 years, the
company has spent an average of
re¬
table
re¬
joint
on
which
to
ferred-previously.
I
They have
resist
try to
since, in
have
tne
of
transportation
offered
solution
which
their
swered
shippers
would
have
a
an¬
:
on
forms
if
In
closing, I cannot refrain from
my
favorite
monthly
publication "Fortune" magazine.
the rails where it
the
in
an
article
in
beginning
belongs"? Traffic belongs to ship¬ 102 that the economy of the coun¬
pers,
not to any form of trans-, try is being harmed by present
portation... To assume that they- transportation policies.
On the
can be forced to give it to one or; other
hand, the best thinking of
another form of transportation is the editors on page one of the
foolish.
their
for
well
as
solicitation
as
There is
freight.
over¬
flexible, integrated, coordi¬
nated service.
Regardless of
whieh form of transportation gets
the immediate advantage the ulti¬
too much,
a
the
to
be
and
them
paramount.
Railroads
should
not stop here.
than resist
ing forms of transport and newer
ones
such as "slurry" and liquid
invented at any time
They should help
that may be
the
or
belts, etc., or any others
conveyor
in
railroads
"rubber"
pipelines,
future.
perfect such new
devices and
bring them to the rails, rather
than let them develop independ¬
and
ently
until
them-by
pass
they become independent compe¬
titors.
Their attitude should be,
we
can
it either
do
combination
<
better
or in
cheaper.
singly
and
They cannot excuse themselves
the
theory
that; regulation
on
holds them back either for
forms
ing
exist¬
transportation
of
■
the
6%
of
has
known.
ever
Does
or
it
that
thinks
our
econ¬
service to match it.
is such a
service, that
vital
Transportation
essential
fore
every
of improvement
carefully explored be¬
drastic steps are un¬
avenue
be
more
dertaken.
Changes should be pro¬
gressive
and
evolutionary,
not
revolutionary, if we are to retain
the
blessings
which the finest
transportation system in the world
under
private
ownership
has
brought to
us.
FIG Banks Place Debs.
The Federal Intermediate Banks
June
*
day-to-day competitive incidents
—looking at the trees rather than
the forest. Actually we are living
in a new society. The commercial
realities of the present
require
a
flexible, adaptable service in
which each form contributes to
economical and efficient transpor¬
tation within the fullest measure
of
capabilities. What is most
at this stage is bold new
its
needed
outlook and planning, and an
ob¬
jective, conciliatory and coopera¬
tive approach by all transporta¬
tion people and a realization that
transport techniques will not re¬
main
stationary.
All the other
conditions
not
present. You
are
compound
successful trans¬
a
system
portation
can¬
out
of antago¬
The
ices under their ownership,
out
first
integrating
with¬
the services
"
now
permissable.
premature
scheme
of
until
combined
established.
It
hope is
competitive
Such
a
also
services is
revives the
suspicion, that once under their
control, railroads would sacrifice
developments
and
improvements
of other types of transport to the
ent's
times
The
income.
net
and
is being offered
issue
new
of underwriters.
.
financing
the
from
Proceeds
will be used to refund $49,000,000
debentures maturing on
of 3.40%
April
for
and
1957,
operations.
1,
lending
March
On
the
will
Christopher
28
become
member
a
Stock
York
New
P.
of
Exchange
be admitted to member¬
and will
ship in Bernard, Winkler & Co.,
11 Wall Street, New York City,
members
of
the New
York Stock
Exchange.
Richard
from
1956
pre¬
profit margin was
40% of
while the net (after tax)
return on capital exceeded 40%.
The dividend
is currently at a
quarterly rate of 25 cents regular
Prior to the
plus 25 cents extra.
S.
Barnes
partnership
on
will
retire
April 1.
WASHINGTON,
D.
C.—Adrian
Ralph Kristeller on March 31 will
retire from partnersnip in Sade,
Kristeller
&
Co.,
Investment
members of the New
Stock
Exchange, and the
name
will
be
changed to
Building,
firm
&
Co.
Leo Sade
quire
a
change.
the
New
The
York
Tucker, Anthony Admits
On
April
1
will become
Graham
a
partner in Tucker,
B.
Blaine
Anthony & R. L. Day, 120 Broad¬
the
New York City, members of
York
New
and Boston
Stock
Exchanges.
Which companies gained
new
shareowners in 1956 ?
A new analysis of common stock
ownership in 20 listed companies
with the most shareowners has
been
made by the exchange
Magazine. Published in the cur¬
rent issue, this revealing study
discloses that one company had a
on
March 28 will
in
the
ac¬
Ex¬
an
article
com¬
.illuminating
market price range table for
those 29 companies that presents
helpful research to the reader—
quickly and concisely.
plete with
Status of
an
"Arrearages"
the exchange
strikebound for 156 days,
reports
rate which is likely to be
re-established, in the. future. The
company's financial;*■ position is
very
strong.. On Dec. 31, 1956
current assets totaled $35.6 mil¬
21%. And, of these top 20 listed
companies, 17 showed increases.
come, a
lion, of which $19.1* million were
cash items; the latter alone com¬
fortably exceeded all duFreiit lia¬
bilities of $16.8 million.
In the
postwar period, the company has
all
expenditures'
condition
capital
which will continue to hold
No funded debt or preferred
the
precedes
The
true.
stock
of
shares
1,760,000
stock outstanding.
common
the
of
performance
com¬
indicates that the manage¬
The fact
that
Schering's
president,
Mr.
Francis
C.
Brown,
has
been
pany
ment team is very able.
elected
head
to
American
the
Pharmaceutical
Manufacturers
Association and that other officers
held
high posts in drug in¬
dustry organizations provides evi¬
that
dence
the
is
management
regarded with esteem by others in
field.
the
been
been
view
In
have
relations
Labor
satisfactory; there has
most
never
a
of
strike.
this
record, the low
Schering's
explanation. The
market
gained
Analysis of this kind is typical of
the
exchange
Magazine. Its
articles and studies
by
are prepared
financial writers,
and corporate execu¬
leading
analysts
tives. Here
are
few other
a
of
appraisal
requires
frequently cited reason con¬
cerns the supposed uncertainty of
down
earnings
because
of
heavy
de¬
pendence on the "Meti" drugs. On
the
basis of the available evi¬
that these earn¬
probably more secure
than is generally acknowledged.
The company's leading trade posi¬
it
dence,
ings
seems
by
•
trend
of Har¬
the
vard, Yale,
and Co¬
serves
Princeton
represent
multi-million
ous
dollar investments; and each of
the four funds favors the
mon
The
stocks of the
editors
of
same
these
funds
new
and
"the
common
issue, you'll find articles
tables that distill
the sta¬
of
bro¬
kers, bankers, businessmen in all
fields. That's why the exchange
Magazine is being read by mbre
more people every
month.
and
The cost of
com¬
panies, observes the exchange
Magazine, paid either stock divi¬
dends totalling 20% or more, or,
split their
qualitative
into easy^reading features
high
stock dividends. 29 of these
dividends
a
wide interest to investors,
168 companies listed
big board" paid 197
paid stock
as
for the investor.
tistics of investment activity
Last year,
on
industries
In every
own—have
prepared tables showing the ten
largest common stock invest¬
ments of all four colleges.
Stock dividends—a
Magazine ob¬
the fiscal climate of vari¬
com¬
industry.
Magazine-believing you'll be
especially interested in the
issues
have been
arrears
a
exchange
measure
exchange
the
is
steady downward
since 1948. Here again,
showing
portfolios
arrears
$100 million from
January 1, 1956. It also points
The endowment funds
lumbia
over
out that such
college
endowment
a
total amount of such
ex¬
amples from the latest issue—
A look at
Magazine also
decline in the cumula¬
tive preferred dividend "arrear¬
ages" of listed companies. This
interesting feature notes that
only 16 listed companies re¬
ported dividend arrears on
cumulative preferred stock in
the past 12 months; that the
most
and also
2-for-l or
year's subscription
issues —is just
$1.00. If you send in the coupon
below today along with your
dollar, you can begin your sub¬
scription with the fact-filled
—
12
a
monthly
March
issue.
exchange
Remember,
the
Magazine cannot be
purchased at newsstands.
are
tion, intensive research effort, and
development of specialized appli¬
cations constitute important bul¬
against competitive inroads.
the promising potential of
Trilifon, the recently introduced
tranquilizer,
and
the
probable
emergence of other new products
the
from
moderate
laboratories
improvement
make
in
1
Magazine, Dept. 7
Wall Street, New York 5, New York
the exchange
11
I
|
Enclosed is $1
j
|
order). Please send me the next 12 issues
of the exchange Magazine.
yq 5
I
name.
(check, cash,
a
earn¬
during the current year a
possibility.
Finally,
it
ings
distinct
should
on
membership
Here's
better.
26% increase in common shareowners in 1956. Another, though
In fact,
To Be Sade & Co.
Sade
on
sharp upturn in earnings in 1955,
the company's dividend pay-out
had been around 50% of net in¬
warks
York
listed
Stock Exchange.
most
sales,
stock
Bernard, Winkler Admits
Wuest
is
its
tax
have
through
John T. ■ Knox,
fiscal
agent, and a nationwide syndicate
Perhaps the rails have the am¬
integrate all these serv¬
placed
been
privately.
nisms.
bition to
has
1957,
3,
issue
per
financed
devised. Such ex¬ on March 19 offered a new issue
cuses are psychosomatic, not reaL
of approximately $106,000,000 of
There is nothing in the act now 3.80%, 9 months debentures dated
and there never has been any re¬ April 1, 1957 and maturing Jan. 2,
striction against the use of joint 1958. The debentures are offered
services by all types of transpor¬ at par. At the same time it was
tation. The present limitations are announced that a special issue of
only on ownership, and those are $2,000,000 of debentures maturing
Transportation
leaders - of all
forms of transportation are giving
too much energy and attention to
ings for capital appreciation.
The
from internal sources, a
those yet to be
limited.
of
attractive
tors to add the stock to their hold¬
owner¬
nominal.
is
qompany
and
merits
price are likely to induce an in-,
creasing number of astute inves¬
way,
of the stock and
ship by officers and directors
the
Schering's sub¬
stantial
subsidiaries
could have developed to such
heights without a transportation
existing
ing of the stock has been forth¬
the
$6.04;
omy
should
five
share amounted to
profits of the foreign
would add approxi¬
mately $1 per share to the par¬
Earnings
The magazine's
be badly coordi¬
"haywire."
economics must
and
about
subsidiaries, sales during
$56.8 million; net in¬
after
taxes
$10.6 million.
come
ca¬
believe that this could
.been accomplished with a
transportation
system
that
has
if
base period,
1956 totaled
at¬
the face of the earth
highest standard of living
world
nated
bearing
foreign
the
anyone
gone
should
encourage < rather
developments in exist¬
-
only
on
and the
may
other ethical drug company.
Excluding the performance of the
have
Transportation
Forms of
.Other
They
of
public are undeniable and
should
-
all
benefits to
mate
With,
population, we have
tained the highest productive
pacity
than 2%
This record is unequaled by
fold.
proves
world
for
any
The
a
situation
any
He who proves
nothing.
such
of
profits had improved about eight¬
predicted."
whelming evidence of the demand
as
this
Schering's sales had in¬
creased
on
solicitude
history.
Using 1947-49
by 1956
choice will same issue boasts that, "The year
what meets their needs.; 1957 will be the best year ever.
what they want and» This make3 the third consecutive
will use it.
Shippers want 'best year ever' that 'Fortune' has
they
in
that the research effort is
them
Give
its
at
fruit.
The shippers'
depend
stock
portion of the
comparable com¬
large
a
drug
recent
entry of the company into the
fields of anesthetics, tranquilizers,
and veterinary medicine indicates
page
on
than
laboratories
its
time
it contends
January issue,
of
Whereas
low
panies as Smith, Kline & French
The recently completed and G. D. Searle is closely held,
biological science research center, Schering's shares are very widely
to
be followed soon
by greatly distributed
among
15,000 stock¬
enlarged
biochemistry facilities,, holders.
Only about 100,000 shares
provide an ideal setting for scien¬ of the 1,760,000 outstanding are in
tists. The company has currently
institutional portfolios.
No indi¬
more products under investigation
vidual or institution holds more
of
eventuate
ethical
of
ture
opinion, the real
price-earnings
Schering lies in the na¬
the
stock
ownership.
for the
industry.
inevi¬
public is to be served.
In
ratio
research, which places it near
at the head of the list of the
research-conscious
twitting
purposes.
Isn't it senseless to keep saying
ruefully, "We're going to get this
traffic back
all
will
or
another,
one way or
services
sisted the grant of certificates but
never
delay the
or
reason
dollar
sales
each
of
cents
that
be changing, for institutional buy¬
coming recently.
In the writer's
serv¬
made
trucks
by investors.
currently
a
evidence
unfavorably
appraised
generally
During
ices, this resistance would evapo¬
rate.
Regardless of the ultimate
outcome, it would seem futile to
by
Best
of $3 million per annum.
excess
seven
transportation
sponsibility for losing out to mo¬
tor carriers on a portion of the
long-haul traffic, in other words,
the 5.42% of trips over 100 miles
1956,
indicates
that
has been treated more
trading vehicle than as a
long-term investment
There is
as
i
in
in
Schering
search expenditures are
on
exclu¬
rails
of
shares
well for future developments. Re¬
these
of
those who must rely
or
public
some
large turnover, almost 1.4 million
2
■
On the other hand, if the
became accustomed to ef¬
take
page
Cabinet-
the
sense,
shippers the service they ac¬
tually needed. This is where the
must
from
Committee report has been a dis¬
service to railroads since it has
for motor service.
instance did
the
the? power to make destructive
on
was
of
theory is; reinforced by the pres-" Continued
ent insistence, in some
quarters,
interchange
statement
four
detriment
2*
(1359)
a
for
a
be
noted
"small
that
dependence
products
major portion of sales and
income is
a common
specialty
drug
address-
of
number
feature of the
field,
and
is
not
CITY-
-state-
money
I
23
(hrrq-he Commercial and Financial Chronicle
k,
(1360)
•
TO
LETTER
We
EDITOR:
THE
have, therefore, thought it
.'7 .best to attempt to
tions
/
straight salary as a tool
for recruiting, holding and motivating executives by making use
Reader Blames Wage Pressure
For Price Inflationary Spiral
of additional
tion.
not
Editor
Commercial and Financial
ChrnSZl^
Chronicle:
popular.
supplemental
served
our
stead of
have
in
Exhave
would
if in¬
country better
that
depressions
curled
salaries
salarjps
ou
J
hair
or
of
will
or
wouldsay
wodrdsUthatathe
few
a
and
wisecracking about future
past
or
Humphrey
Hoover
wagesand
pressure groups reprepressuie groups repre
liciency,
organized
.
groups.
increased
'* Pllb'ic
cost
of
living
without
system
work
1
up
2%
or
'our, whole
endangering
private enterprise
of
real
hardship
a
organized
foree
moves
75%
of
the unworking
on
our
millions
plus
and
of:-self-em-
-
I
doubt
National
that
Defense
be, reduced
for years to come.
.
.
executive
closely
.
e71f1fyJSfStsh°"ld alS°b£
r
private ;
What
is
and elsewhere is more courageous
......
P..
,,
,
politicians
whether
,
that
not
or
would be popular.
13, 1957
than
Business and Investment Research
vestment Bldg., Box 168, Hutchin-
in
is
possible
in
cost to the
Restricted
to
$82.89 in the last quarter
Continued
from
pensation has
different empha-
a
sjs am0ng these purposes and diffcrent degrees of effectiveness in
may
In addition,
other purposes
purpose.
serve
peculiar to itself.
All forms of supplemental com-
pensation
have
in
common
the
characteristic
lime
and valuable to the
rare
terprise and thus command
price in the market, and;
Second,
The
fact
that
it
en-
high
a
is
il-
is granted. - Any
profit from the ultimate sale of the
stock
pay
man
a
or
the
price of its stock.
executive
realized
Intelligent analysis of the many
supplemental compensation has been greatly complicated
i
by indiscriminate use of the terms
"bonus," "profit sharing" and "in¬
centive compensation."
forms of
•!
1.
«
4
P
«
it.
^
outside business world. Its amount
Bonus and Profit Sharing Plans
In
our
.
analysis, bonus plans
are
not
because
they love
they need them,
is the foundation of his standard
of living and his personal plans.
Corporate management has had
great
success
in winning the good
opinion of its employees and the
public by emphasizing the altruistic (the "love them") aspect of
compensation in explanation of the
retirement
and
insurance
plans
fringe benefits granted
to
hourly and clerical employees,
However, the very success that has
and other
attended
fort
has
this
public relations eftended to obscure the
"S^a.sDcrt'"of'111
> aspect of all
need
mem
reh
coi-
porate
compensation.
The result
been that unwarranted criti¬
has
cism
has
been
directed
at
programs
are
com¬
proposed
in
total cost
salary
be simple,
arrange-
definite,
certain, and the use of other
of compensation, however
generous and varied, should never
forms
be
allowed
to
interfere
with
establishment of adequate,
the
reason-
able, internally consistent, and externally competitive salary levels
throughout the company.
Straight salary has, however,
,
certain obvious limitations:
relating executive compensation
For the
,
executive, straight salary,
because of the progressive fed¬
eral income tax, is a relatively
ineffective
tool
Stoek options
more
ers
in
own¬
in the event of his disability
death.
than does the compensation of
other
employees. In many large
corporations the total amount of
For
limits
of
this
the
corporation,
the
or
readily be reduced when
profits decline.
oC
the
Many
straight salary as
by introducing flexibility and special
provisions
into
the
salary
.into
compensation
a
program
.terrps of recruiting, holding
motivating executives.
in
and
!
■
<
„
.
*
salary
Straight salary is the foundation
.
v,
of all compensation
programs.
pensation
program,
exoense
can
but
It
deficiencies
a
form of
of
com-
be compensated for
this
is done
at
the
of complicating salary ad-
ministration
"
However, being based primarily
the general prosperity of the
not;
progressive income tax.
considerations
morale
and
and in order to make
promotion
the
of
possible the
executives
younger
company
finds
-
it
expedient
payroll
either to keep him on the
after
age
has
he
to
or
reached
-
-on
When all the:
hidden and indirect costs
into
al-»
disability benefits
or
individual basis.
an
retirement:
provide retirement
lowanees
taken-
are
is is less costly to
account,
deal with the problem of the over-;
age
executiy^ : by ^systematic,:
funded
fetiremeht.5 "plans," -quite
privi¬
lege granted to the executive than
direct
form
the
own
and
detracting from
the characteristics of simplicity,
definiteness and certainty which
are
a
the chief
virtues
of
form of compensation.
salary
as
more
of
a
compensation
individual
must
invest,
in the company's
money
stock in order to benefit from
option.
the
The value of the privilege.
depends
future events, and
upon
O
will
retained.
Q
accrue
fV*
fA
A
AAm4i*r/\
the executive
to
•
*'?
J<
• ■
Deferred
f Deferred
has
•„'Jf,
■' v\
av
a
vi
1
tr
only
much
is not:
compensation
years,
_•,*
in
attention
a
rdistinct form of
all, but rather a
characteristic which
be incor-i
can
com-:
pensation with the effect of level-,
ing out the earnings
executive's
life.
tion
of the
curve
Instead
fining the executive's
of
con¬
compensa¬
his
to
working years, it
spreads his lifetime compensation
his whole adult life.
over
All
re¬
of
de¬
compensation, but the
ex-
tirement
ferred
plans
if the company prospers, the price
pr^csion
reference
exercise his option. The only costs
to the companv are the dividends
■
compensation;' which
received
of the
stock rises, and the execu¬
has the financial means
to
=
Compensation. Y
compensation literature in recent
is
forms
are
usually,
employed
individual
to
in
executive
employment contracts which in¬
corporate, in effect, tailor-made
retirement plans by providing for
continuation of payments to the
executive
standing.
of
For the executive, unless the
price of the stock rises substantially, the stock option can be a
active
a
period
termination
association
pany/
>•
his estate for
or
after
time
with
his
of
the
com¬
:
■
Although deferred compensation
'
rather
pensation.
e p lses.
Protective Compensation
Protective
.
n
compensation
fh___
f
fe£^]"Jf
msahnitv and death
t
clude'
nen<;i0n
and
have
It
in"
rpf.immpnt
and certain kinds
compensation
They should not,
therefore, be relied on to take the
place of
an adequate pension plan
light of competitive pressures,
in
the,
company's interests
Deferment
produce
sation
predictability
to
the
as
to amount.
company
viewpoint,
income
ity, an aspect of deferred
which
point.
From
of
tends
reduction in the
a
to
execu¬
tive's life-time income tax
ing. certainty as to payment, and
Incentive Compensation
the
and
needs of executives.
its directly and significantly.
■
,
protective
but
they do
not
possess
the, essential protective
characteristics
of
certaintv
and
P
*
Jp
Tbe essential and distinctive
chaiacteristics of protective cornpensation are deferment as to tim-
value in providing effective individual incentive to other than
important
consequences
predictability.
coin-
f
prif^ a11■
lorms oi compenJaC1°" wn<ose primary purpose is
TO v\°™ci tne eromnvee,an^ nis
me
tures
those very senior executives who
are in a position to influence
prof-
liabil¬
compen¬
is extremelv attrac¬
tive to very senior and. therefore;
hieh income executives. How¬
very
the
from
ever,
add
company's
stand¬
must be exercised not
care
deferment features
various
forms
of
the
to
supplemental
In contrast to bonus and profit the primary justification for pro- compensation in such fashion as
sharing plans, we define incentive tective compensation is that it is to detract from their primary
compensation as those forms of to the advantage of the share own- functions of identifying the inter¬
executive
compen-
ers
to facilitate the removal from
sation whereby selected executives the
special current or deferred sums,
based on individual contributions
a relatively inflexible
against earnings that
propriate,
i
a proportional relationship to salaries.
supplemental
salary
possible to discuss in
detail the many forms of
compen¬
sation currently in use.
It is ap-
however, • to comment
briefly on how we think they fit
often bearing
are
cannot
presenta¬
tion it is not
relatively simple to
administer, the basis for the distribution of the bonus fund quite
are
budget is
payroll is less than
of the total corporate payroll.
Within
They
charge
the executive
5%
tarian
porated into most forms of
are
ship viewpoint and to improve income executives who are necesv
r the conduct of large en-
010
? ar?d team-spirit within the
?r^amza ,n' at I®35* when earnir?.^s. and stock Prices are not.declininS.
for
building an
estate, providing for retirement,
or
taking care of his dependents
to the
potential profits to the share
capital gain when
rate which, for the
a
deferred
^
corporation and offer far
that
does
frustrating form of com- includes all forms of protective
But in the case of a compensation, the converse is not
company which is operating in true.Thus, stock option
plans
industrial fields with a tremendous which make it possible for execu¬
tives to accumulate an estate at
growth potential, the stock option
is virtually indispensable as an in- capital gains tax rates, and bonus
as partners in the enterprise. Thus expensive and constructive form and incentive plans.with deferred
they tend to stimulate an owner- of incentive to the ton-flight, high payment and stock payment fea¬
on
to the consequences of executive
action.
the
a
" motivating executives and for ^™'>any' bo"us relatively f ari"« plans, insurance,
iS a,.bll!?t a"d inI1f.xible too1 for Plans are of a"dpr01fit limited
for executives, even though execu¬
tive compensation programs in¬
volve far less
that
and
man¬
agement when corresponding
pensation
It follows
ments. should
to
identified with profit sharing plans paid on the stock purchased and a
as forms of supplemental compen- modest dilution of the stock out-
handsomely
•
them but because
at
taxed
income tax rates.
tive
represents a man's "market value"
and is a symbol of his status, both
within the corporation and in the
as
is
higher salaried executives, is substantially less than the progressive
his
-
executives
executive
The result is that out of humani¬
option
purchased
since
earnings
is of great psychological value to sation.whereby.all or,substantially
and receive less than his whole
most men. Salary is the basis for a11 executives are paid, in addition
efforts, and that
therefore
the retirement pay and is commonly to salary, special current or decompensation for senior executives a *fact°r iri i tlm determination of ferred sums based upon the prosmust be both adequate in amount
the amounts of bonus and incen- perity of the business as a whole,
and tailored in form and
timing tive payments, insurance coverBonus and profit sharing plans
to make it
unnecessary for them a#e> and the perquisities of office,
(like stock ontion, stock purchase
to devote undue time and
energy
From the executive's point of and stock gift plans) serve the
to their personal affairs.
view, salary is certain and pre- psychological objectives that can
In other words, companies
pay
dietable. For the prudent man, it he attained by treating executives
logical to
the
cannot because of the ef¬
or
fects of the
•
the
a
company's
market
Effective Compensation Program
For Professional Executives
both
X;
Options
corncurrent use which is
pensation in
that the compensa¬
tion to the executive varies with
'
Kansas.
son,
14
page
Stoek
One form of supplemental
the
1952
./'•'-
.
at a price approximating the fair
company.; ^arket price of the shares at the
Each form of supplemental com-
Hutchinson, Kansas, Bankers In-
$67,97
convinced
however,
demonstrated,
often
too
do so
after taxes for the executive at
each
weekly earnings of
to
We are
:
more
fraigbt salary P™gra™s-
serving each
FRED F. KOPKE
from
1946
ecutive action.
performance
a minimum
in Washington
needed
industrial workers have increased
in
m?tivatingeforece f™0px-
posjtive
has
,
'"
in the end will reduce indus¬
and business activities.
Wages and Prices
$43.82
evaluation procd historL™ rcv™w Into"/
pur-
the subject of much discussion-is
March
The average
performance in terms of
family in the event of
disability or death. Experience
gram so that expenses can be the restricted stock option whereby aside- from the competitive pres-:
enterprises or self-e m p 1 o y e d.
reduced more readily and more selected key executives are given, sures that piake; such programs
Higher.mterest rates will mcrease
promptly when earnings decline, the opportunity to purchase their, mandatory today if competent ex-Production ""d w.ll reduce mdns- ' Providing a maximum net return company's stock at a future date ecutives are*r to be recruited and
and distribution costs
,h»
ex¬
not be reduced
executive
y*
our
government
penses may or may
1TP
pressure
er? whether working m
trial
of
cost
can
thus
and
soon
the
executive function, and to appraise
"minded that they enjoy a job Introducing a measure of Jlexibil-
and
-
ployed and small businessmen.
his
terms
Y
,^,yc Treating
e executive as if he that it is worthwhile to strive for
not b?e," .mcrea?ed to ma(tc,h thc
were a partner in the enterprise, the plus values of incentive cornMBSSS ?ensat'- ^compared with bonus:
creased as a S of monopoly
result
utl"cu
r*
rs
. to>. profits
and to individual, or profit sharing plans.,
HvS .fnrk nfL^^nt0 ?!
10% each time the
and for his
to develop standards of measurement for the performance of each
in
tbe Pa?
or w'1ere .'n
power
5 or
agement's basic responsibilities is
tools
centive, stock option, stock
responsibilities,
new
or
of
compensation, properquis-
chase and stock gift plans. All
havesu, commo,n thei objective of
only as
the result of increased worker ef-
Thursday, March 21, 1957
.
.
pensatiom^oduce^^'^vnmSe
dynamic
be increased
can
.
formance and relate it to profits, vest in the executive, serves as an,,
particularly in the case of indi-r
viduals, such as corporate staff ex - the company.
,
^
ecutives, whose contributions to;
In principle, -the executive by•
profits are difficult to identify,
personal savings and investments
: But this is not a problem created; or
by the purchase of suitable in- '
by incentive compensation. In any' surance or annuities should make*
well run organization, one of man- his own
provision for his old age
Supplemental compensation ineludes bonus, profit sharing, in- P^arion introduces a
ana tinawat
salaries
have found
Supplemental Compensation
>
prices
n
Secretary
President
we
tective compensation, and
ites.
1956 while the average retail
since 1952 have increased
little less" than 5 %
Wages and
of
forms of compensa-
doing
so
compensation
price inflation on organized
Reader Kopke would like to see
politicians" not care whether they are or
segment of the labor force.
are
In
it useful to analyze such additional
Kansas financial advisor blames
"more courageous
the limita-
cure
of
:
Paid,
in
addition
to
salary,
to profits to the extent that such
contributions are ascertainable and
measurable.
Incentive plans are perhaps the
payroll
of
individuals
who
have passed their peak of effectiveness by compensating them in
part with protective compensamaking room
advancement of capable
executives.
tion,
thus
Protective
for
younger
compensation artend also to relieve
most difficult of all forms of executive compensation to admin-
the executive of personal financial
worries,
and
executed, they are the most
effective in stimulating executives
to their best efforts, and in increasing company profits. The major problem peculiar to such plans
is, of course, how to
measure per-
the
of
executives
share
thereby permitting him
to concentrate his attention on the
company's business and enabling
with
those
of
providing
inducement to effective action by
owners,
and
relating compensation to perform¬
ance.
Perquisites
the
ister. Yet, when soundly conceived
rangements
ests
The fourth classification ef forms
of
compensation, in addition to
salary, supplemental compensa¬
tion. and nrotective compensation,
is "peronisities.": In our analysis
perquisities
status that
are
are
those symbols of
associated with the
individual's position in the execu¬
the comnany more nearlv to "buy
tive
the whole man." In addition, a
retirement plan, to the extent that
the amounts paid into it do not
tions
can
hierarchy, such
as
long
vaca¬
(if and when the executive
find
generous
the time to
expense
take them),
accounts,
club
Number 5622...
185
Volume
memberships, executive medical
programs, larger and more elaberately appointed officeswith
windows, and the key to the ex¬
ecutive wash
Although
income
years
shift
retirement
its executives.
capital gains.
perquisites
exert
Flexible
„
morale,
Perquisites
ex¬
foregoing anal¬
the unstable type of executive who
is willing to
of his character, age,
substitute ior a sound
structure, and an attempt
no
salary
so to
them will tend to attract
use
accept the appearance
for the
reality of status. But fail¬
to give due regard to perqui¬
ure
sites may well result in nullifying
in good part the morale benefits
of the remainder
.
tion program.
\
.
;*
.
of
a
sults of
our
sation
,•
,
The
efforts to state in
use¬
be
objec¬
tives of executive compensation—
tive position, and
istering the
ana¬
lyze the various forms of compen¬
in terms of their place in
sation
on
the appli¬
principles that have
evolved from this analysis to the
a
sation program.
There
iwe
see
specific compen¬
-
.
basic
four
are
steps,
as
compensation program:
identify and describe
fashion
as
to
management to utilize
powerful persuasive tool that
left, compensation and its
to the executive's pride
that
believe
We
.
researches
our
as
and
hierarchy of posi¬
performance.
within the company,
price of the executive talent re¬
quired, the range between maxi¬
mum and minimum figures being
Can We Make Foundations
i
wide enough to allow for
>
:
-
the range
of competence that can be accepted for the position, and variatiorrs in the market price for the
"At
take
for
for
mutual
executive the amount of his
com¬
pensation within the range for his
the form or forms that
compensation shall take", in
job,
and
:his
light of the types of motivation
required for the job. and the personal needs and preference of the
,
.
<
Britain
-
cline and
*
pended
These
the
;
'
:
seek out
i
and
and
with
the
In developing our
individual executive position descriptions
search.
I
:
have endeavored to include the
7
tion
end of Britain in the
position by stating not
only the functions of the position
j
-
also
but
achieved
*
the
by
be
"This
performance of
Forties.
objectives
the
to
the functions.
was
sheer
sheer
is
of Britain and France call for
The second and third steps, set;
ting a compensation range for each
✓
position and determining the indi-
:
executive's place in the
far too complex in their
vidual
range, are
.
administrative aspects for discus¬
sion
this time.
at
1 obvious that the
.
it is
However,
end
result of
S.
Harry
Truman
must be the establishment
competitive value ranges if the
company is to recruit and retain
in
now;
no
the
The
Eighteengreatness
defense from
me
else. Their contributions to democracy,
anyone
portant factors in civilization for centuries to come.
They have
through two terrible wars at enor¬
sacrifices with their democratic institutions
mous
their
and
come
cultures
standing firm. We should and
of
its executives with anv success. In
sueh
workable
value
setting
up
ranges,
valuable guidance will be
will do
everything in
our power
couragement and support,
sake
as
for
as
to give them en¬
much for our own
theirs."—Harry S. Truman.
,
the
American
ciation's
Service
Management Asso¬
Executive
which
Compensation
analyse and
sum¬
Unfortunately, the feasibility and the fruitfulness
of any
the
working compact between the United States
one
hand
marize the compensation rates ac-
on
for typical iobs ac¬
cording to the major classifications
other
of industry.
ture than upon
and
Britain
and France
on
the
"
tuallv
paid
As to
determining the forms of
compensation
for
each
a
veil its°if of a variety of com¬
pensation tools appropriate to the
and their
upon
their history and their cul¬
certain other factors—their ability
willingness to contribute to the military
executive
position, our analysis suggests that
a companv would be w«ll advised
to
depend less
potentials of the western powers and the degree in
which
they and
we see eye
to eye on major issues
that arise around the world.
an
1957.
Share earnings
increased stead¬
ily during 1946-48, were irregular
ir¬
utilize water
necessity of
leveling.
In the past' five
Utah P. & L. has added over
the
electric
total
demand
of
with
some
and in later years
shown a steady in¬
crease. Last year $1.70 was earned
vs. $1.55 in the previous year, and
despite the offering of additional
shares
next
October, President
Naughton
expects
1957
share
earnings to improve. There is no
in
1949-51,
again
have
present
crease
in the $1.20
k
twice
fast
as
as
indicate
casts
S.
U.
the
that
Fore¬
split.
one
mountain
the
should , gain some 46%
more population by 1975 as com¬
pared to 36% for the nation as a
region
whole.
of
U.
S.
Steel's
Geneva Works has doubled in
the
postwar period, and another sub¬
sidiary — consolidated Western —
hase built a large pipe manufac¬
ture
past decade Utah
have
P. & L.'s rev¬
increased
from
$15
million to $41 million and net in¬
come
has almost trioled.
Installed
generating capacity increased
250,000 kw to 615,000 kw,
with another
100.000 kw going
The
company
pendent
butes
on
about
is
now
less
hydro which contri¬
one-quarter of gen¬
nearly three-quarters in 1946. The
company also benefits by compet¬
ing fuels—coal, pitch and natural
gas.
Coal is used at the Carbon
Plant under a 10-year contract,
the
about 21c.
price
per
F.
Rothschild &
representative.
.
With
*
Ingalls & Synder
Henry P. Finlay has become as¬
as registered representa¬
sociated
with
tive
Ingalls
100
Snyder,
&
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
de¬
erating capability compared with
with
L.
change.
next August.
into service
with
'
af¬
Co.,
120 Broadway, New York
City, members of the New York
Stock
Exchange,
as
registered
In the
plant near Geneva.
enues
With L. F. Rothschild
Robert L. Loeb has become
filiated
capacity
The
from
found in the reports published by
original
with
of
return
indication
of
an
in¬
dividend which
reflects a payout of about 70%.
-18,000 kw.
At the recent price around 26 the
All these developments explain stock
yields 4.6% and sells at 15.3
the rapid growth of the area —
times earnings. Range in the past
population has gained one-half in
year has been 28%-23%, after ad¬
the
postwar
period,
increasing
justment for last year's two-fora
industry and science, apart from their culture, are
so enormous as to assure their continuance as im¬
any
method of pricing executive posi-
tions
.
or
.em-
obtained.
be
can
400 new irrigation customers,
<
nonsense
nonsense
water
an
Utah
in
6%, which
was the approximate rate of earn¬
ings in 1956. Earnings will prob¬
ably remain around this level in
found
have
Farmers
base
allowable
defense
of
has
company
rate
cost
which better
land
Eighteen-
It
dispersion
eliminate
years
Forties.
each
The
has
area
systems of the new sprinkler
and
the
expects to spend
$46 million in new con¬
struction during the three years
'
drilling wells amnle
by
type,
build
foretold
Russell
basic terms of reference for pricing
-
Lord
The company
Many of these wells supply irriga¬
rectly, the Duke of Wellington
and
use of
mechanized
standardization
of
about
brought
installations,,
Corps
of
rigation
.
we
-
circuits, etc.
being further re¬
bi-monthly bill¬
sub-stations, etc.
center, for Army, Navy
area.
that
firmly for the future. If
remember my
history cor-
are
through
ing, greater
equipment,
'
more
included among
responsibilities of the ViceRe-
Air
the
must now
and rising nations
could
Expenses
duced
of
distribution
shorter
equipment factories from the West
Coast and other areas, important
plants are under construction in
we
we
rea¬
of refinery
*
a
because
major powers.
would have us
historic friendships on
which
installation
jployjpg sqme IS,000 people. Also,
—
as
new
have
installation
The Salt Lake-Ogden
become
be de¬
ground that
organization
planning function which, at GenThe first step is an
President— Administrative
*
can
upon
eral Dynamics, is
(
longer
,
and
,
in de¬
no
power
location of plants,
heavier - lines,
through better
per year.
experts
abandon
executive.
are
hydro
1957-59, of which $22 million
would be spent this year. Fifteen
capacity in the Salt Lake area of million dollar bonds and about
about 95,000 barrels per day. Re¬
400,000 shares of common stock
cent exploration in southeastern
will probably be sold next fall
Utah has revealed an oil pool of
to pay off bank loans and carry
great magnitude known as the construction into next year. Fur¬
Aneth field. v. Exploration in the
ther requirements through 1959,
Utah
section 1 of
the
Colorado
lin excess of internal cash, will
plateau indicates substantial ura- be met
by bank loans. The com¬
\nium
reserves;
revenues
from
pany
expects to maintain the
electric service to uranium mines
equity ratio somewhere around
and mills will yield about $600,000
the current level of 42%.
that
France
and
Colorado
the
about
will under¬
back into full partnership
benefit and security. I cannot sub-
self-designated prophets
*
to
sonably priced fuels the com¬
pany's residential kwh rate is
only 2.15 cents compared with the
U. S. average of 2.64 cents.
An¬
of high-grade phos¬
reserves
western
we
'
scribe,/tp, the contention of some of our experts
each
determine
result of
bring Britain
our
supply about half
requirements for
the
Due
being built near Georgetown. Oil
reserves in Wyoming
and north¬
Bermuda, I hope the President
to
needed talents,
<'Third—To
a
analysis
and
force, in¬
phate rock and Monsanto Chemi¬
cal
Company
now
operates
at
Soda
Springs
the -two
largest
phosphate furnaces in the world.
A 35,000 kw furnace for produc¬
tion of elemental phosphorous is
and self interest.
given the option to vary
proportions of his compensa¬
noted
is
area
Southeastern Idaho contains
larpe
has
it
The
served.
Chemical is included.
potential of perhaps the
full
the
contract, pitch in
new
will
plants, pack¬ nual residential usage of 3,900 kwh
ing
houses,
sugar
mills, - flour is 31% above the national aver¬
mills, oil refineries and irrigation age. Low rates have been aided
systems. About 30% of the com¬ by increases in efficiency —• for
pany's revenues are industrial, if example line losses have been re¬
interruptible service to Monsanto duced from 18% to 10% of input
to
trend
favorable
1957
fuel
tries include cement
are
particularly important in the have a better insight into how to
early years of his career when his achieve the full potential of exec¬
total income is at a minimum, in¬ utive compensation. We hope that
surance
is particularly attractive this exposition of what we have
in
the
middle
years
when his been doing may be similarly help¬
• 7
family obligations are at a maxi¬ ful to others. '
by assigning to it a dollar value
-range in terms of its importance
to the company and the market
*
the
a
dustry and commerce have also
been developing rapidly. In addi¬
tion to smelting, processing and
fabricating of metals, local indus¬
is
Second—To price each position
-
hooves top
most
recognize, for example, that salary
to establish the
tions for their
reinforces
24.6c, and 24.6c respectively. With
.
appeal
tion package in such
,the jobs and functions to be per¬
we
Gadsby Plant with costs at 28.7c,
the principal
are
fuels and a stable labor
persuasion as the instrument for
inducing executive action, it be¬
executive
individual
that
tion
gas are used at the Hale Plant,
costing 26.8c and 24.1c respec¬
tively. Coal, refinery pitch and in¬
terruptible gas are used at the
for its varied mining
an
the
First—To
formed
the
cities
i n t e 11 e c t u a 1,
moral
and
psychological revolt
against compulsion in the rela¬
tions among men, and when
the
shortage of executive talent in
itself creates a competitive situa¬
experiencing
a
as
when
era
an
could be
orderly and systematic execu¬
tive
.
pro¬
matter of company
policy,
the
sales
might be required
to take at least a specified mini¬
mum percentage of his total com¬
pensation in the form of incentive
compensation, and all executives
might be encouraged to partici¬
pate in a uniform, company-wide
retirement plan, but within such
limits
it, in the development of
any
Thus,
In
its
and
the
big
resources— Gadsby Plant. Mountain Fuel Sup¬
ply supplies 32 million cf a day
copper,
silver, lead, phosphates
and coal.
With the advantages of of interruptible gas for use at
;...
,
water, fuel, low-cost power, cheap Gadbsy and Hale.
City and Ogden
the
primary concern of top manage¬
ment.
vice president
cation of the
development of
compensation
in
manner
motivating executives.
And executive compensation is
a
compensation
compensation program designed
to achieve those objectives.
In conclusion it is appropriate
briefly
.
*
gram.
r
a
-to comment
by the company to
appropriate for each execu-
Practical considerations in admin¬
hold and appropriately
executives—and to
motivate
or
determined
.
to recruit,
type
the
lighted, in terms useful to top
management, the 7 essential ele¬
ments
of
reasoning behind the
systematic use of compensation as
a tool for recruiting, holding and
established by
the individual
v
'
:
types of motivation
package
Light
Colorado and Wyoming. Salt Lake
formulated
have
we
&
But
problem and the terms in which
we
have analyzed it have high¬
the company for
in his job.
the fundamental
form
se¬
that
feel
which
Power
only in the at¬
answered
do
we
imposed by:
are
be
Utah
subsidiary, Western Colorado
Power,
supply electricity to a
population of about 750,000 in
northern and central Utah, south¬
eastern Idaho, and southwestern
tempt to put it into practice.
The amount of the total compen¬
I have outlined thus far the re¬
ful
executive's
individual
lection
compensa¬
Applications
,
the
on
By OWEN ELY
Utah Power & Light Company
practical sense in implement¬
can
and financial
"family situation." The limits
and
pretty tall job, and
a
ing such a program for ration air
izing the use of the various forms
of compensation and providing a
tailor-made
compensation pack¬
age for at least key executives is
a question
of administration that
holding and motivating executives
will be achieved by allowing the
executive to select, within limits,
the forms of compensation which
are most attractive to him in light
festly
....
How far it is possible to go
it is.
in a
The logic of the
like
sounds
of
ysis suggests, also, that the maxi¬
mum potential effect in attracting,
mani¬
are
Selection
Compensation
pro¬
a
the
on
motivation, of
hence the
ecutives. !
-
to
Stated in such broad terms this
difficult to eval¬
influence
found
and
and in later highthe emphasis may
programs and
mum
jor-category of positions and
adaptable to the varying needs of
uate than other forms of compen¬
sation,
level,
motivations required for each ma¬
room.
more
29
(1361)
The Commercial and Financial Chronicle
,
.
million
Btu
Coal and interruptible
Joins Harris,
Upham
:
Harris, Upham & Co., members
of the New York Stock Exchange,
have
announced that
Walton
them
as
is
now
Co-Manager
Park Avenue office
City.
Kenneth J.
associated
with
of their 99
in New York
30
<1362)
The Commercial and Financial Chronicle
:
"»■
rnntinuarl from first naae
Continued from first page
At
V*
PfAklAflie
IaVmIvAIIm
When I say we want to keep lie policy this involves searching spin. If »we retain our depression
quesiions of judgment and timing, phychosis about> the tendency of
clear that I have no illusions
•
the economy to run down, we be-r
about transforming this economy
creeping Inflation
come resigned to a toore or less
of ours into something akin to a
I doubt that there is today any perpetual pumping up of our*
.
PfACYIAYltlT
IVillfVillJ
»
where
something has gone badly
wrong
in America.
If history tells
anything—and history has been
us
said
more
have
to
than men—-it is
imagination
that
sound econ-
a
sound nation, a sound
people travel the same road as a
sound money—not different roads,
omy,
a
at
c
Sees No Contrad
The more I reflect upon
the al-
between a
sound people and a sound dollar,
the more aptly it seems to lUustrate the confusion growing out of
the somewhat novel set of
^problems facing our country today as
contradiction
leged
revealed
by ^ the
Congressional
Committee's inquiry into certain
of the
problems of prosperity.
.
problems seem all the
These
strange
more
^because for more
a generation we were preoccupied with another set of prob-
than
.
economic
and
te
prosperity—hardly
the
to
way
dispensable to aconomic-growth— sufferer^ from cost inflation today ture," taxation and" debt manager ,
,i*#m ^agriculture "and ;even
^ ^ restored.^
i
,
.
to
me,
thi^seii^
to keep; r it
isi
though ment policies.
in times of heavy
supplies i$ certainto raisefarmers' costs mere^ than their selling
chdnra
nrosneritv in
ftee^
seems
of full incorporation into our econ- it
and
values
deliber-
a
...
of manpower and reearly thir- sources, and even for education
ties, took a terrible toll in terms and training. In fact, one of our
of human misery, of the destruc- major economic problems is the
of
respectable support for
uninter-
,
sion, that began m the
tion
„
_
activity in the economy, which ruptedly to new peaks of produc- ate policy of creeping inflation as keep it healthy,
began in* the fourth quarter to"tion and employment- •„
- such. It is no longer argued, as it
that year, strengthened^ during
Currently, for example, we are was some years ago, that the econDecade Ahead
1955 and led into essentiahy boom wjtnessing some relaxation of the omy has to run a temperature to
If, as it seems to me, the decade
conditions in 1956 and early 1957. jntense pressure that showed up keep healthy. Rather the attitude ahead promises to be a time when
rnnrfitimis
in the economy late last year. As on the part of some is that creep- we shall be trying to overuse
long as economic decision-making lnZ inflation is a tolerable price rather than underuse the econ¬
I have recounted briefly tnis bit ^decentralized in -millions of io Pay for avoiding unemploy- omy, a decade marked by. a shortof recent history m order to docu- farms ^nd businesses as it is in ment and the other potential dif- age rather than a surplus of labor,
ment a contrast. Unlike most or our socjety( we will experience ficulties I mentioned a moment then the objective of prosperity
those years, the economy^row is gome ups and downs. No free ago*.
......
*
with price stability requires deoperating without the artificial economy can abolish the business
I am aware of the fact that there veloping and applying prudent restimulus and control apparatus oi CyCje \ye can? however, properly are powerful economic groups in straintsr from time to time when
war or the backlog of civilianide- geek
wise private and public America which apparently think an overloading of the economy
mands deferred from war. I ao policies to keep our prosperity they can beat the rap of creeping threatens widespread - price rises!,
not mean to imply tnar military movjng aiong a growth curve inflation by advancing their sell- Such restraints, within our basic
demands on the economy are neg- within a range of f]uctuation ing prices, whether for goods or system, should be of the most
ligible at present wrf om .
marked by the general experienceservices,, faster than the rise ..of general sort, permitting a maXilevel of military expenditures is of 1948.49 and 1953-54. There is their costs. I admit that a dollar mum of freedom to individuals,
now running at about lUvb at reason to believe that a better in today's pay envelope seems This" is another Way oi Sa^ingfhey
gross national Product, with an understanding exists today of the more real than the loss from in- should operate through the mar-,
impact on som® ^mems of me underlying changes in the econ- Ration in the value of savings ket mechanism. These are thp
economy far
,n
' omy,
that
policy
possibilities tomorrow.
I- know that expan- general monetary controlsthat afThis mditary muireme^ repre- available to us are better and >s^ry policies to raise prices ap- ^ect ffeeVcQst and aupply of nioney,
sents a forced draft
*n more widely understoodand ^tifctilPear ^tractive-to ^many farmers, 'and the fiscal controls that operthe economy with s g
confidence in the future-—soin-^ven thoughone of. the greatestatethroughgovernment expend^
The Great Depres- allocation
and deflation.
moving
belt
conveyor
people and a sound dollar, in the
words
of
this legislator,
some-
Thursday, March 21, 1957
this prosperity, I want to make it
■.
m.
m
m
^
,
. . .
Prices
hopes.
The years 1932- omy of these national security
unemployment average demands that may be necessary must seek solutions mine, prop11 million. In the best year for the long haul. However, hav- lems prosperity brings in its tram:
j
khow
too
that
.
1 J-'
-
^
The nrobleni df accenting ■ these
kn fhe jdemand^rnfll
Wt of inflatiOri
been
h2
as^-
illuL
+
been ilius-
^3
.money, imtne recent past,
F
manv
blasted
1936
over
saw
period unemployment was
17% of the civilian labor force; in
of the
25%. As year after
pessimism grew,
Doubts spread as to the ability of
our
kind of economy to operate
the worst year,
year
in
a
dragged
on,
splf-regenerative manner- at
ing said all that, it is still true that
high prosperity is substantially a prosperity of the private
economy, fueled by private spending for private purposes, under
conditions
of balanced Federal
our
budgets^ancT.a Federal^ It is this
Bes^e
policy of credit-restraint.
lieva
(1) The threat of burning itself
out through inflation and thereby
sowing the dragon's .teeth of a
later serious reversal.
: i".'i
.
(2)
The
with'the
temptation
market
to
Advance
in
a
higher
npt
can
hi*
n«, ca".»| When I hear certain, versions^of
t
.
the
»
r»
+
T
V
,
..
,
„
kind of economy, in contrast to
those dominated by depression and
o
r
S wage
-<J>'^need ^.^ourage^^ sav- mill increases, not .real
..
cbuld be " altered only by
In one sense the policy decisions
massive government investment, required in a depression economy
In
1939, when World War II 0r a war economy are less diffibroke
in
Europe,
there
were cujt than those required in our
that
'
9,480,000 Americans out of work, peacetime prosperity.
The ends
Clearly^ economic policy, during are simpler, though the means to
never
,
get to its feet.
Then
came
there
<
massive government
orders for war. Production and incomes
rose
-
andunemployment
as
is
little
problem of choice
where it shouldl be
to
aged,
scarce
is little
there
encour-
problem of
there is not
over price
resources, and
The economy likely to be concern
changes. The big problem is to
ignite the fires of expectation and
turned as the huge military ex- confidence in the future. Indeed,
penditures
fell
away
sharply it was the failure to accomplish
Contrary to many expectations, this that left us with massive unthereadjustment went rather well, employment as late as 1939.
But these favorable developments
j
wartime-economv exnandvirtually vanished.
hummed.
war
and
But upon the end of the
for the future re-
the fears
non
recurring
circimnstHnccs
q
oroblem
Is priority
mSiSSt?
use
hut
of
oup
a
resources
nnH
^
LhiPvpH
tp(5pi
prices rose
r
r
a
thnntfh
8
'
control,
both to
and to cope with
price inflation. Such direction and
control have proved possible only
Erection
and
ditions prevailed, the outbreak of
hostilities in Korea in mid-1950
•
the
people
t0
con-
because
our
Over the
of
past
quarter
certturv
experience^^with this brdblem
our
seeking ~DrosDeritV
msl
un/eTS
condition*;
seen,
has
very
a
boon *
possible for
us
all. Need-
py the tax re- less to say, we want to keep this
ctuations
in
result
was
a
1954^ine
renewed
surge
«
cause
inflation-as a national way of llff- ^
must- adjust; our thinking to.
the
realization
that
optimum- icy
^
act
ftf su?h
a
oTrestr^
deflation, stunt.econohuc growth,
m.tee long to • v^.ppg a ,* uc ^
generate unemployment and im- run ,are not the same thing as
ilf
pede the satisfaction of essential maximum prosperig and growth^ ^onaL PoRcy.w
wants. It is, clear that the deep
Jhjf sh°rt run. Having so ad- such ps^ small bus ness,ag culture
psychological trauma of the de- lusted^ur thinking, confidence in ^ houi^
is an error.
We
should
not
the future is made more durable,
and thereby it can become a more
dependable and vigorous force for
g°od times and for growth.
_
the interest_of enhanmng its ef-
.....
dent s proposed National MoneThe first step is, I think, this tafF Commission could serve a
yltal puiT?se- •-
Prosperity and Price Stability
matter of attitude. We must reject
the negative idea that our'goal-of,
With regard to fiscal policy, it
- clear
that. at- such times, of
unattainable. Of course, we do not- pressure on the ^economy as regknow for certain how perfectly, istered by the price thermometers,
prosperity with price "stability is. is
attainable the goal is, but equally-public spending-&nd demand fpr
know of no basis in fact that, resources should be* strictly limit is not attainable. We should, ited to what the needs -of the
adopt as a basis for public - and country imperatively require, revprivate policy the view that we enues -should - be in excess of
can have prosperity and price sta- expenditures
and public dej)t
bility.
* management should not contribute
we
A corollary to this viewpoint is
be that we regard the economy as a
sturdy, though sensitive, media-
doctrinaire either way.- We should
be as interested and prepared ,to
we must always seek wajs to imProve the arrangements, by which
monetary policy is carried put in
1° Ibe shortage of savings, to meet
investment demand,
r A major objective of-"this Adnism -capable of undergoing pru-. ministration, when it ^assumed
prosperity as the vehide:tcra bet-- cope with deflationary" chills- as dent T restraint 'when •
necessary,*- governmental respensibility four
of ter life for all our people.
with inflationary fevers. For pub- without being thrown into a tail—years ago, was to regain control
mimetary ease and
effective
and
jty. and i^we^uire seUers" mar- tiviiy* aspect provid6uMW6
every >And* of our ec— acas the invariable objcctivo,
war
p"^aJf expenditures stepped and for the good things of life that
it makes
aided oy a well-timed shift to
men
-Jkcts
as
brought an increase in military
expenditures and an accompanying increase in consumer and inventory buying. The end of the
Korean fighting in 1953 was followed by a rapid reduction in military expenditures. This was seen
in the drop of Federal GovernToday ours are the different tempts to moderate it run the risk
ment purchases of goods and serv- problems of
prosperity. It is a fact of plunging us back into depresices from an annual rate of. $61 that more Americans
are at work, sion.
biUion in the second quarter of
producing more, earning more,
Obviously no one can know,
.J®®?i to an annual ate of about spending more, investing more what is around the economic, corbnhon m the third quarter of and building more than ever be- ner.
Fighting inflation after the
1954. This, in turn, touched off a fore in our
history. We are thank- inflation tide has begun to ebb is
liquidation of inventories in 1953 ful for that—for the rock it forms an
error, just as failure to fight it
wilich lasted into 1954. Again ris- on which to build our defenses for fear of
inducing a depression
in,
the availability of
beiiig. deflationary^ if we "assume* to fail 1° qualify—for many rea^
of the economy^must; sons. There are going to be some,
at full capac- uneveh, impacts, as there are..m
limited,' indeed." '.wf„shaH have to rcsigir ourselves to;
willing
radically for pression years has hot been fully
emergency, healed by the economic success of
Not only is this direct control ap- the
war
and postwar period,
proach impractical in a peacetime Fears persist among some that the
prosperity but wholly undesirable stimulus of extraordinary public
and contrary to the basic prin- and
private spending' in these
ciples of our competitive market years has yet to spend itself. To
system.
them prosperity is still viewed as
a
temporary and abnormal state
Cannot Have Uninterrupted
0f
affairs
that
is
pleasant but
Prosperity
fragile, and that even modest atthe duration Of
were
m
-tvife:'tifice:;'^6i,sist6ptly^operate
system
alter
bear any relation to the changes
:
Within our conception of prosI am quite aware that a credit
have'rlsen 4%, while perity,. our task, it seems to me, restraint policy creates ■ a problem
consumer prices oh the average is to widen the narrow path be- —there isn't enough to go around,
have gone up $,%. Interest- rates-r- tween inflation and deflation, We rnainly for the reason that there
the price of money-—havev also' ought not tu define so narrowly arexi t enough resources to go
risen. A tight labor market has our-goal of prosperity as to ex-'
' .The method by which
led to a rise in mohey wages;per- elude, temporary periods of ad-; credit is rationed in the market is
haps twice the gain in over-all justment. If we define any Condi- not going .to be perfect. -Some
productivity in recent years. •
tion which is not-inflationary as' ^35^^^ desirable needs are going
for have
fir achieve priorities
sharply.
Before a return to normal
t
^
Under
the last year
large degree of emergency central in seeking this goal we will
Pt-frv^Fff
m the supply of money.
such a situation, changes in the
money supply would no longer
able stability, wholesale prices in
miMtafy requirements. To that That fact may contribute^ to^^ ap€nd the economy is subjected toa prehension in many quarters that
iiSrISSh
supported by indefinite increases
materials.
That system added
what the President referred to in perity. and: the inadequacy. of many, billions of dollars to our
his last tw ijcohomic Reports as depreciation reserves m the face -money supply^^ in the .-immediate.
achieving^ prosperity with price °* today s prices-—which is a way postwar years when the money
stability. The threat implicit in
sa^ng they are losing out m supply was already too large, thus
this problem has been posed in the cost-price jace. I believe the helping to propel the level of the
recent times. We have seen that f^1;8 of inflation^ are something consumer price index up from 77
staMlfty
oIqq
serve
Pref®^
^©asury-Reserve aqcord of March
Pr^ce stability. . Working men and 1951 and . return, to the wartime
increases .are tread
increases,
famous
economist
developed a
ings
help sustain a healthy Farmers have seen m reeent years
theory leading to the conclusion war over the past quarter century, expansion.
-U... - - the heavy impact .on their net
that an economy like ours tends that I have in mind when I speak
mcome^of rising price, for the
to settle out at less than full em- of
the problems of* prosperity
Problem « Price Stability
things they buy. Businessmen are
ploy ment—a condition, he argued, today.
*
The first of these problems is
..ng moi*e of profitless proshigh levels of employment, production and income. In Britain, a
**1S critlcism of the Federal Re-
credit-restraint policy .1
•
1 believe also that all. these wonder whether some, of those
.groups^ aipng with other Ameri- critics want to abrogate the
taxnner
system
that
^L,™81 ^
Volume
Number 5622
185
.
.
.
The Commercial and Financial Chronicle
it is still true that
higher rewards for saving will
likely evoke more respoftse. Those
who are preoccupied with the fact
that interest is a cost, would do
well to remember that it also is
the wage for saving. Unless we
get better undertsanding of this
key fact we can impose a serious
keep more of their in- adjustment," where it takes in its hobble on our own healthy ecospend Or save as they stride
the . varying impacts of nomic growth. I'
changes in demand and changes in ' Our generation has before it a
of the Federal budget.
must the attitude that every eco-
The budget
est-rate, yet
nomic
undertaking, whatever its
nature or circumstance,
has a
right to succeed.
.
A free dynamic economy must
posed for.1958. Moreover, the Ad- possess the resiliency to adjust to
ministration
is
actively seeking the ups and downs of its various
ways by which the fiscal burden
segments. It is capable of what
tan be reduced in order that peohas come to be called "rolling
balance in the
last fiscal year. * It will be balanced in this fiscal year. Another
balanced
budget has been probrought
was
pie
may
to
come
fit.
'see
into
"
While
these
monetary technology.. If government ceases
create a to create* conditions that foster
general
controls*
fiscal
and
can
of« prosperity
goal
our
chance
to
It is a
take
healthy change and
and instead goes heavily into the success for all our people. We
business of designing and build- have an unrivalled system of proing competition-shelters, it will be duction and distribution, a system
with
price stability, I think it is fair
to say that they need some: help,
to
challenging opportunity.
another giant
adjustment stride up the road of economic
in the economy favorable
climate
badly serving our hopes for a that has the support of the whole
sound economic growth now and American people. We are trusrtion Of direct controls over wages, in the future,;
;
V
"tees of this- economic system
prices and materials. To seek help ■* The -vear 19a5 showed -an in- whose prosperity we now enjoy,
there would be to confess failure crease over 1954 of $27 billion in We must keep it healthy so that
of our system to achieve the goal Gl'oss
National Product meas- it may continue to serve our needs
As
this
before,
noted
we
help
should not be sought in the direc-
desire.'
'we
Rather
marked
;dent
^
v -
'
.
:
•!
j-~
"
1
January
in;t his
out
*♦■■■■•■»
'messages
should
help
the direction the Presi-
;COme from
Not
Appeal
Naive
a
Our
new
•economy
■
bargaining
-
dlcfsiLns
of
1958, and the 3 V2s due May 15, 1960. These same two issues were
refunding operation of the Government,
and at that time the reception given them was just about so-so.
used to the very recent
This
could
•
iiQ
they went much better because there was the added
of the tax and loan account of commerical banks,
which was used in the payment of these new money securities.
It is expected that it will be on the average between 25 or 30 days
before these funds will be taken out of the banks by the Treasury.
This contributes to the attractiveness of the new money issues as
far as the deposit institutions are concerned, and particularly the
shorter maturity, the 3%% due Feb. 14, 1958. The offering of the
3 %% due May 15, 1960, for new funds enabled the Government to.
continue its policy of having some element of surprise in its opera¬
tion,
long-nm
aSinst ^heh'
rt^k6lf-irrterest*bertheir
seit-mterest
be xneir
s
run.
The
struction fell, led by-automobiles
a,nd housing^ Despite these declmes expenditures for produce^'
equipment; more than - doubled
their -percentage increase of the
fhoir
^Product in real terms increased a
shortguide
-guiae«
areas
for
in
declines
others
,
-
lie discussion has been stirred up.
good deal of research into pro-
A
ductivity and its relation to wages
and costs and prices is being stim-
«■
;
-
general
the President has caused many an
American
that
of
this economy-on
such
will
a
little more
take
the
whole
a
problem
to meet
upon
emer-
gency
kets has been a painful process.
However, it will never be successfully accomplished if it is to be
insulated
by unrealistic,
rigid
price-support legislation from the
,
market
express;
place
where
their
x
V,
.
'
A¥X4WX..
x
held
41st
approximately
by
the financial
tries in the Detroit
Herbert
*
indus-
Harold
by
L.
Senior B»o»oratet> ? Federai Reserve Bank of Chicago,
Calif.
—
Irving
Gold and John T. Parks have beaffiliated
&
A second
that
we
*
with
Gill-Hark¬
to
tendency
means
t
& Co.
Rate of Business
-
use
•
government
mechanism
to
the
improve
good
times for the benefit of one group
or
another'
Competition is one of
great'forces
the
must
on
which we
rely to keep our prosperity
healthy.
These efforts to limit the
operation of competition are
fraught with peril for the economy as a whole, Such tendencies
„
are
7
understandable,.;, of
since
under
highly
*
penditures
increase
Two Join J. Logan
needs of sound borrowers. Nor do Union Street,
Jve want ;to bridge the gap be- ...
.
A ..
tween savings and investment by - , , . - Allen Inv. Adds
creation. of new bank credit.
(special to the financial chronicle)
—
30s to encourage
discourage savnext, can enact.
proportionately may be, regarded some .-tax .legislation, we should
by that industry or firm as a crisis* realize that the era of economic
condition, and by others as a weak bulb-snatching is over, that we
I am im~ require; a tax system that will
pressed, where I sit, by the great foster the savings needed to pronumber of proposals forthcoming ;mote faster "growth.
Those who
in
this
time
of high prosperity emphasize the part of savings in
fdr the economy as a Whole for our national growth are correct;
reducing particular taxes, easing for they stress a strategic factor
an(j
parks
q
R
stolte
are
now
Edward
W.
affiilated with
Mile High
AUea Inv^stment Co.,
£gnter
otherwise "Don't spend to a week all you
artificially favoring the lagging earn in a week."
'
members.
Some of these propoThis emphasis requires, too, a
sals seem to be based on the idea return of common sense to. disthat every structural maladjust- cussions of interest rates. These,
ment in the economy should be of all prices in our economic sysdealt with by an injection Of-easy tern, still seem to be regarded by
credit.
This sort of attitude, of some as evil. Despite the fact that
course, represents, a fundamental much-of today's saving is corporquestioning of the effectiveness of ^ate and much of the rest is* of a
-.free markets arid should bear a contractual
nature not quickly
heavy burden of proof.
So, too,- responsive to changes in the interthe
market,
put at $38 billion, the total is still pointed upward;
signs of leveling off. Last year the
22% and the strong impetus which this spending gave
of the very important forces that kept the
Nonetheless, annual spending at the $38 billion rate compares
an actual figure of just over $35 billion for 1956 and this does
seem to forecast unfavorable economic conditions.
However,
with
the bloom off the boom will lessen the inflationary
and this should not be an adverse development as far
the money market is concerned.
Movements in
that bids and offers are not yet appearing
being
are
moved
readily
Cazanan and Ed-
in both directions without too
securities changing hands. In spite of this professional tone
there is a continuing movement of selected issues
into the hands of investors.
It is evident from the information
which is available that certain public and private pension funds,
and some foundations continue to be buyers of the most distant
to the market,
bonds.
The ones in which the principal interest
appears to be at this time, according to reports, are the 3s and the
3^2S. These purchases have not been too large, but they have been
coming into the market with a considerable degree of consistency*
so
that they have given a sort of balance or cushion to prices
when they show a tendency to weaken.
- ,
,
,
,
government
equation, offerings of these bonds are
not sizable and at times they are not large enough to be appealing
to those that are buyers of them.
Therefore, while the market
On the other side of the
long governments is very
for
,
t
.
,
limited, and is subject to wide price i.
gyrations at times, it should be borne in mind that only sr
lifting of the pressure could bring about a very sharp and
minor
quick
,
of these obligations.
Savings Institutions Stick to Corporate Bonds
savings banks and various public and private pension
among the important buyers of the new offerings of
The
funds
B.
I
many
COLORADO SPRINGS, Colo.
Theodore
■.
Government Bond Market
government market is still on the thin side; which
in size. Quota¬
The long
tions
With Copley & Co.
are
corporate bonds.
this
new
The saving institutions have been coming into
with larger purchases than was true not
issue market
It seems as though money which was going into
mortgages is now being invested in new corporate bond issues.
The unfavorable competitive position, however, of long govern-
so
long
ments
ury
ago.
means
no
interest by the
,
aforementioned buyers in Treas¬
obligations.
,
.
(Special to The Financial Chronicle)
or
,
The latest estimates of spending for plant and equip¬
ment seem to indicate some slowing down in the record pace
which was witnessed in 1956 and the first of this year.
(Special to The Financial Chronicle)
ward L. Noonan have become
connected with Copley and Comcredit by direct advances or guar- in the gain in our material re- pany, First National Bank Buildantees by the government, abridg- sources.;* It
would be good for ing.
ing
competition, purchasing of Americans to recall a motto of,
AJJ
*
goods by government at prices the savings movement in England, " - rSotzum Adds to OtatT
above
now
was
upward movement in quotations
spot in our prosperity.
.
& Co.
CSpecial to The-Financial Chronicle!
rent volume, we are short of
PASADENA, Calif.—Cooper P.
savings --today; m this country
compared to investment demand Matthews and F. Allan Winfor savings, as evidenced by rising . Chester have been added to the
interest--rates and the unsatisfied staff of J. Logan & Co., 721 East
designed in the
Wane
going.
means
To cope with this need we must
DENVER,
Colo.
Joseph
A.
recognize the obsolete nature of King jr. * William R. Nichols. Gilcourse, some of.our tax laws which were• • berf 'T; Mullins, Charles L. Page,
prosperous
on
t; but the rate of increase shows
as
(Special to The Financial Chronicle)
and undercona record cur-
'. conditions I generally the failure consumption and
of an industry or firm tp prosper, ing. '• When we
Spending
pressures,
.that the difficulty with our econ-
to tamper with the market
tax
the taking of
Joins J. Logan
is to encourage savings to finance
problem of prosperity omy is oversaving
cope
with is the sumption. . Despite
corporate
Department of Commerce and the Securities and Exchange Commission estimate that capital expenditures, for 195Tr
will be 6%% higher than those of last year.
With annual ex~
not
Co., Security Building.
-
Savings and Taxation
A third problem of prosperity
must
that
The
boom
(Special to The Financial Chronicle)
come
)
...
expectation
to the economy was one
With Gill-Harkness
BEACH.
rate being
Treasury.
n
"
the
Also,
of
cheadle,
LONG
3%%
a
receipts of
another j
given for the elimination of the larger weekly borrowings
by the Treasury. The retroactive raising of the rate on Govern¬
ment
Saving bonds should slow down the turn-ins of these;
securities, which has been a drain on the cash resources of the
The principal address to the gath-
We
talking about
are
issue.
March 15 will bolster Treasury cash in a sizable way was
LOS ANGELES, Calif—Morris
healthy rate of economic growth.
....
r
....
This requires a reorientation of geCfrer js now with J. Logan &
Opposes Building; Competition s; some.depression - born thinking, Co„ 2115 Beverly Boulevard.
Shelters
an
area,
Schollenberger,
given
Some
•
to 4% for a
reason
McCarty & Co., President 0f The Bond Club, presided,
was
to indicate a range from 3%%
given
time.
of
an-
Campbell
ering
The
have to pay for long-term money.
the Treasury has raised a total of $1,1 billion of
by increasing its weekly bill offerings. One of the*
for the stopping of the Treasury bill, new cash;
raising operation, was because the Government will get enough
funds in its current new money venture to tide it over for a period-
leaders of
150
banking
and
few weeks."
5
,
being
exchange for the
mature this year
promised a deci¬
big question now
was
money
reasons
X4i,_
its
a
consideration"
weeks,
seven
Detroit Boat Club. It was attended
—
*
x
j
by the Government to give up, for the time
being, its additional weekly offering of Treasury bills did not
come exactly as a surprise to the financial district.
Over the past
a
jective.
;
this time.
one
decision
The
nual dinner March 20,1957, at The
consumers
preferences.
w
Detroit
of
club
ness
economic '
of
dumped in the lap of government
—if we are to succeed in our ob-
-
called
need to use market forces, not try
to abolish them, in working our
an even keel. It way out of the pressing agriculrealization—that tural situation,
stabilization cannot be summarily
-•
been
^
appears
about in line for such
DETROIT, Mich.—The Bond
responsibility, long with
government, for keeping
his
on
reflect
to
during the last decade-and-a-half
war-time demands for food
and raw materials. Readjustment
that of agriculture to peacetime mar-
public
pays the price at the end of the
production line may well be a
little better represented as a silent
partner at future major wage negotiations. And, finally, I* believe
The
ulated.
mild
"careful
Government
25-year obligation.
Holds Annual Dinner
and
that
this matter "within
on
Competition
Detroit Bond Club
•fur"ler 2.5%,,Here is a demonstration of real; resiliency [in the /
.economyj
compensating in some
announcement
is what will the
new
than
less
a very
Proposed Long Bond for "F" and "G" Bonds
The
remedying its faults and a sense
of the limit to the load we may
place upon it. Demanding as this
task will be, the rewards will in
like measure be great.
enthusiastic maintaining oyer - all
growing
response.; It has been called naive,; ,prosperity at a high level.
impractical and visionary;-Maybe , Over against this is the example
it was. I doubt it: A healthy pub-, 0f agriculture, which has twice
-something
only
was
sion
has had
President's appeal
though it
even
built, and resist the tinkerers and
their
thot
urtrori
time
advantage
tamperers whose well-intentioned
wage
impulse
gfve ^o the
pressed for cash, borrowed $3 billion of
repeat performance for the 3%s due Feb. 14,
structiom showed the greatest per-
conse-
the
a
given to a new long-term marketable bond in
$1.5 billion of "F" & "G" saving bonds which
was not entirely unexpected.
Treasury officials
-
their
all of
us
n<*ina voioViot
'
the
consider
.
for
auences
through
money
and those of generations who
come after us. We must conserve
the fundamental market apparatus and incentives on which it is
industrial
our
Governments
ured in constant dollars. Though
a11 major elements except governmen* Purchases contributed to this
rise, ^expenditures for durable
-consumer goods and for new cOn-
He asked that
of
leaders
these:
on
By JOHN T. CHIPPENDALE, JR.
centage increases. In 1956, how- efforts can reduce it to medioc-enHst the aid of labor and man- ever,, expenditures
for durable rity. That task will require, both
.agement to help contain the cost- consumer goods and;-new con- a mind to improve our system by
•push to inflation.
Reporter
The Treasury, hard
sought to
You -will recall that he
.
SI
(1363)
LOS ANGELES, Calif.—William
Krausse has been added to
m.
the staff of C. A. Botzum Co., 210
West Seventh Street,
•
*
.
t
U^r-ria
®
Leonard S. '-Herzig, partner in
Sartorius & > Co., passed away
March; 13th* at the age of 58 fol-
'"
lowing a long illness.
Form Central States Inv.
With Fin. Investors
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
MANSFIELD, Ohio—C e n t r a 1
States
formed
Investment
with
lar to engage
ness.
"Robert
President and
Secretary.
offices
in
a
M.
M.
has been
at 271 Pop¬
Co.
SACRAMENTO,
W. Deming
Calif.—Robert
has become associated
with Financial Investors
Incorpo¬
securities busi¬ rated, 1716 Broadway. He was for¬
Wildermuth is
merly with Francis L du Pont &
E. Wildermuth,
Co.
,)_i
ill
La lad
32
(1364)
The Commercial and Financial Chronicle
Continued
from
over-all
13
page
economic
prospects.
government
isting
programs
Exthat
socialist
promote a smooth transitlon, such as veteran benefits and
Federal Reserve Board
unemployment
economy,
sorbed by
the event
industrial demands.
of
curtail
one-half
a
In
Federal
obligated
depend
would
acquire
to
of
terms
expenditures, the
these supplies the
of
Government
these
the
under
would
contracts
the strength
on
be
civil¬
of
ian demands.
tion.
compensation, and,
where
applications
has
in
increases
o£ defense
capacity
productive
related industries
accelerated amortiza¬
program.
As in the case of
through
tion
an
the
stockpiling,
this
impact
peak
long
has
program
of
since
alternative
and
opportunities in
countries.
penditures
in
225
abroad,
Forces
strategic in¬
tries,
dustry groups to meet specified
capacity goals. To date, projects
fiscal
have
this
under
•constructed
to $37
amounted
program
billion,
on
which
accelerated
lias been
applied to about $22 bil¬
lion.
The
amortization
total
outlay on these
projects represents about one-fifth
business
all
of
expenditures
for
plant and equipment during
period from 1950
through 1956. The degree to which
new
the
seven-year
stimulus
the
been
investment
to
concentrated
has
in¬
certain
on
dustry groups is indicated by the
that public utility, rail and
primary
metal
expansion
ac¬
fact
counted
for half
the
value
of
all
The
accelerated
* amortization
probably had only slight
influence
business
on
penditures in
including
the
of
stationed
U.
1956.
capital
ex¬
Measured
by
also
S.
ex-
Armed
in foreign
This
1956.
about
coun-
14%
sum
of
equal
was
all foreign pay-
ments made by the United States,
For some countries, however, re-
ceipts
of U. S. defense expendirepresented
a
relatively
important source of dollars,
tures
more
Less
highly industrialized coun
mainly in the Near East and
tries
Far East, who received about
seventh
of
defense
our
one-
expendi¬
most
seriously af¬
by a reduction in U.; S.
outlays. On the other hand, there
are
number of countries
a
such
-
Belgium, Germany, the Nether-
as
lands, and Canada—whose balance
.they
Weather
in
U.
of
serious
receive
total
about
one-fifth'
defense
%:' ;.:
The bulk of
These
outlays'
foreign defense
our
spending went to countries whose
be
able
to
reserves
might be
acljust
8% of the current annual rate of
eludes
program
Even
the
to be
were
its present
in
if
defense
sustained
at
will
probably
be
primarily to the needs of
geared
the civilian
economy.
Impact
countries
France,
as
Italy, N o r w a y,
United Kingdom, and Japan.
face
it
ment,
in
should
be
noted
defense
our
abroad
would
the
not
that
a
expenditures
_
they
of
financial
resources.
a
..
are
absorbing large
human, material and
amounts
50%
lays
reducVon
would
Consequently,
in
defense
confront
out¬
specific
dustries and geographical
in¬
areas—
and
through these, the economy
whole—with serious immedi¬
ate problems.
In the longer run,
as a
liowever, it would free
and
a
industrial
broad
manpower
to meet
resources
range
of
human
program itself has generated sev¬
eral forces which
may be expected
to ease the transition.
Military
research
outlays
and
for
scientific
development in re¬
large, total¬
cent years have been
ing about $l1/2 billion last year.
Many of the military research de¬
velopments made or in process
have
major,
but
yet
as
civilian applications.
If
these developments, and the scien¬
tific
and
technical
skills
con¬
centrated
in
defense
activities
-
be
released
for
peacetime
applications, significant progress
living standards might
Technological devel¬
in raising
>
t>e achieved.
opment
ment
-
would
outlets
demand,
open
and
new
invest¬
could stimulate
thereby
providing
'
'^f^market
f^ermit
are
of
gifts: the recipient countries
required to use the equivalent
these
funds
a
for
purchasing
producing goods and services
their
own
defense, for
or
for
mutual,
our
Allies, and for our Armed Forces.
The recipient countries therefore
must
for
utilize
productive
resources
purposes,
resources
defense
which
would
extent
that
enough
be
our
free
defense
be
time
set
to
effect
Given
the
neces-
more
rapid
potential
here
be
civilian
and
police
a
system
of
con¬
budgetary
appropria¬
physical inspec¬
same
tion of productive and
stockpiling
activity that would be required
by a system based directly on such
controls.
-
—
strain
productive
and
expanding
labor
During the transition itself,
however,
uncertainty
throughout the
economy
could
in
importance that the government
be prepared to act quickly to meet
any
developments and that this
determination be generally under-
the
significance of
in
Ex-
penditures2
and that
•
security
to
expenditures
rate
a
of about
fnUmvW01^ A?rn^v-AQr1
a
two-year
penod
about
follo\. ing
billion.
sents
our
at
The
level
current
of
$41
repre-
10% of the market value of.
total
same
of
rate
a
annual
in
as
percentage
1956.
requirements
of
production—the
It
is
absorbed
the
by
lowest
defense
since
early in the
expansion in security
S9 billion is for pay to the Armed
Forces.
Roughly $25 billion of
struction)
which
and residential
ness
busi-
goods
ex-
of
$35 billion. While defense spendinS bas been large, it has not contributed directly to the expansion
in ^economic activity since early
1954- In this period, * Gross National Product has increased one-
while national security
ex-
penditures have changed relatively little.
v
defense
amount
countries
in
of
resources
such
a
wav
those
as
make good the loss of dollar
enue:
say,
by increasing the
to
rev-
pro-
duction of goods and services for
export.
Some problems, particur
The impact
of
a
50%
cut
in
spending, which, would
to about $22 billion at
current expenditure rates, is difficult to assess since defense out-
lays have had pervasive effects
throughout the economy. The nature and extent of adjustments
which undoubtedly would be ne-
larly in retraining labor and securing capital for expanding pro¬ cessitated in a period of transition
would depend
duction of export
largely on the eco¬
goods, and in
finding export markets, may have nomic climate of the time, the
to
be
solved in the period of length of the period during which
...
»i
i
n
-«
nACiTi
.
transition.
A
major contribution to the
lutfon
be
of
faced
he
^oWem ^ich
by>
foreign
Cn
so-
mav
3
countries
would be the
maintenance of a
strong domestic economy in the
United States.
Toward this end,
governmental policies would need
to be directed to the
easing of
preservation
of
confidence
in
illustrated
other
aJ
«i?
J.
the reduction is effected, the
spe¬
cific expenditures affected
the
relative
importance
Such
that
subsidy;
•a*^ or all of these might be classian
as
military expenditures by
international
authority,
he
plants,
followed by the most
was
periods
of
occasion
rare
if
the
in
an¬
President's:
proposes
funds
no
for
mild
0f disastrous
such as
such
into
political events-
military defeat. Usually,
a
mild
inflation
has
been
resumption in growth countries
the
slowly rising trend in
and prices.
But
these
dent
'
only
were
two
on
Eisenhower
in
of
nuclear
pends
Presi¬
State
"Business
leaders
in
'
,
view
;•
•
of
the
■
fact
sustained activity in the
on
investment-goods
of
industries,
and
in view of the additional fact that
the Union message as follows:
(a)
accidents.
short,
that healthy economic growth de¬
conditions:
his
so
con-
to supplement commer¬
cially available insurance against
liability
arising
from
possible
a
wages
out bv
do
industry s investment in.
plants,
he
again
urged
legislation to authorize the Gov¬
In
spelled
would
proposals from
atomic
.T;;
.
he
new
ernment
fol¬
lowed by mild readjustment and
said
?truction do not materialize "with111.
fas .n5 ? Ple: To facilitate
private
inflation
erupt
mav
but
number of
a
non-Federal interest for such
hyper-inflatioit. but then only because
those
price
possible only
the
in
must,
most
acceptable
Government
rises
that
because of
so far as builders are
concerned? of stimulating invest¬
are
vital
"in"^
Prepared
the Division of Research
and Statistics, Board of
Governors, Fed
eral Reserve System.
providing
carrot,
does
tained
Business in its pricing policies
...
is
ment
or
unusual needs of the whole nation.
not
financial,
policy of sus¬
more
economic
a
growth
almost
should avoid unnecessary oricein-
necessarily
creases
I1161?* wiP continue to participate
ln the financing and stimulation.
the
especially at
present
when
time
a
demand
hard
manv areas presses
like
in
on
so
beneficial,
are
for
fied
^
"Freedom
has
toe opportumty for
the
defined
been
This definition has
as
self-discipline.
special appliof
vage
increasing
a
pressure
redress
to
the
on
fail¬
ure."
(2)
for
Government
fostering,
wor^
Qf
prise>
so
far
Pertinent Questions
industry
gener-
which, together with plant
anti
equipment,1 physically produce
substantially
all
capital
ally
goods,
ness
vations
raise
wheS^ritaanred b^'busi-
or
government, these obserof
President
several
Eisenhower
pertinent
4
frame-
practicable,
entera rea-
SOnable maximum of empl
employment
opportunities,
has
gained
almost
universal acceptance. As a result*
we have the Council of Economic
Advisors
to
the
President,
the
Joint Economic Committee of the
annual
Economic
Re¬
ports, and publication monthly of
to the housing and
construction
the
competitive
as
"
«
responsibility
within
free
Congress,
With respect
be¬
oojectne
.Employment"
a
areas
coexistence
Implications of "Full
oolicy in a tree economy
Should we persistently fail to disr
ciuline ourselves, eventually there
gov^rmient
winner in the intensi¬
desmwe^car^
aeserve
careiui
.
price
the
.
thought.
I
■
a
competitive
'
wen
nnu-pr
be
..
tween democracy and totalitarian-
they
nurrihacino
F.vppnt
purchasing power. Except whprp
where
necessary to correct obvious injus¬
tices, wage increases that outrun
Droductivitv, are an inflationary
factor."
out
come
provide wage earners with greater
will
Govern-
,
investment, including housing?
merely desirable but
mandatory - that
the
American,
economy
demonstrate continued
growth and strength if it is to>
"If our economy is to re¬
healthy; increases in wages
and other labor benefits, must be
reasonably related to improve¬
ments in productivity.
Such in¬
to
that
And is it not
(b)
cation
.,
of
short
main
creases
imply
...
,
supplies."
of
the defense program at that
time,
and the types or direct
fied
clearly
of
budget message in which he states
One
by the
cut,
rather
section
avoid
construction
durable
on
trade union
housing and con¬
industry to be successful',
struction
con-
of $33 billion, and consumers'
penditures
expect
the" nathTnal^infprprt^1 ViiAiouslv method,
the
national
intei est,
studiously
with
private business expenditures for
producers' durable equipment of
new
supplies
Similarly,
when,
are
rising, is it
the
in
pur-
compares
about $32 billion, total
raise
in keeping "wages and other labor
benefits reasonably related to im-
disastrous depressions in business
on
stability
to
leaders
annals.
National
except
than
ufGovernmentTonstrucTion^ofTargeSsS^inZ SM ^ commercial atomic. po4r
50% Cut
a
it not mild inflation;
prices,
Economic
National .,;Security
elsewhere
reasonable
short
<
expect
by price
enterprise system
users?
among
wages
h
ab?
;/V%'V;
on
do
else
free
a
ration and allocate scarce
beneficiaries,
have almostinvari' ^^5nf oonti
befP Perwds of .gently rising
„h1
^
Comments
to
How
can
on
can one
hand, booming demand, a seller's
provements in productivity," espe
market, gently rising prices and
cially if productivity in construc¬
increasing profits bring encourag¬ tion
lags
behind rthat
in
theing rewards to enterprises, farm¬
economy generally?
Is there then
ers, equity holders and recipients
not
likely to be "pressure for
of flexible incomes. : Above
all, Government to
redress the fail¬
they give maximum stimulus to
ure," at least in the investmenteconomic growth.
goods industries?
It is not mere chance that
periWhat
" ZS
is
likely to happen is
^ wl
prospects must
It is of the utmost
^
rises
generate cut-backs of employment
and
investment.
On
the
other
to
be preserved.
businessmen
prices?
falling
also pinch-back profits,
discourage business initiative and
signifi¬
avoided, public confidence
hard
presses
supplies" what else
incomes
lead to cumulative repercussions
beyond the industries directly af¬
by military cutbacks.
If
competitive economy, "when
a
demand
holders, mortgage owners
recipients of relatively fixed
and
fected
a
In
ever-
bond
force.
in unemployment are
and
nuitants of insurance
and
our
broader dislocations and
an
prices, while
increasing the real incomes of an¬
facilities
cant rise
3
page
innovation, with
mand
which
utilize
to
from
ognized that periods of slack de¬
demands
abroad
ample
to
even
the productive
t&lTSSS IXririel o^Tre™'a,™Yo'lhe
in
progress
that
would
readjustments, it should generally be possible to re-emplov
thi
pressures
and a peacetime econthere would be little doubt
expendi-
curtailed.
to
the
sary
_
unex-
ploited,
could
free
needs; tures would
txrth here and abroad. The defense
war
automatically
no.
sion,
to
over
tions by the
present lure of attractive rewards
for initiative and commitment.
The fact should be frankly rec¬
be
economy
omy,
period
expenditures their dollar
receipts. In contrast
longer providing • much, if-to
outright financial aid, our deany, stimulus to economic expan¬
fense expenditures abroad are not
.
cold
a
security expenditures is for
corresponding decrease in chases of goods (including
a
Although defense
.
between
could
outlays stimulated by the out¬
complex problems of adjust- break of hostilities in Korea. Over
mean
are
sary
Financing of Housing Industry
active
Although these countries might
cut
Today
such
Denmark,
level, future increases
capacity
detected
Government's Continued Role in
re¬
demands for
consumer
have increased
;•
corporate
equipment.
Continued
promote further expansion
provided
.
their-
on
reserves.
successfully if
the reduction in
spending was .not
made too rapidly. This
group in-
and
be
effective
make
to
of productive capacity.
If a smooth transition
expenditures'
seriously affected, but who should
plant
underlying
would
to.
one-half
drain
dollar
our
of
defense
and
countries
expected
reduction
S.
without
be
.may
a
covered
on
help
-
that
gold and dollar
spending
—
could
a
trol
—
goods and services, which in turn
stron
strnncr-stood
so
so
the years
immediately thereafter.
The proposed outlay on projects
neces¬
hardly
■
from
—
unlikely that deliberate
study confined to the offi¬
cial budgets themselves. It
would,
accordingly, probably be neces¬
—which despite their complexity
might, in theory, be determined
equitably by international experts
over-all economic
be
fected
abroad.
of
sav-
Well-timed
years.
probably
of 1952, with the bulk of expendi¬
tures presumably taking place in
certificates
recent
be
gold
by
from
civilian
could
seems
falsification
technical questions
of classification and measurement
by
disarmament
permit and encourage expansion of private spending now
limited by the defense program's
tures abroad in fiscal 1956, would
project costs, two-thirds of all
outstanding certificates of neces¬
sity had been issued by the end
sity issued during 1956 wag less
than $3 billion, little more than
Aside
affected
amounted to $3.2 billion in exist
of navments situation Js
of payments situation.is
projects certified.
program
to
many other
S. defense expendi¬
U.
necessity
tive facilities
possible through
exist,
be questioned,
tax-
would
would
it would present similar problems
passed. Since 1950, certificates of
have been granted for
of expanding produc¬
contribu-
Federal
ductions in personal income taxes
Just as a reduction in military
outlays
presents
problems
and
challenges to our own economy,
tures
the purpose
made
|ngs
of
Effect Abroad
of
encouragement
in
—it
local governments.
tion.
been
maximum
hospitals,
and
other
services by state and
Reduced mill- drain on financial and physical
tary requirements would likewise resources. Industry would be enfacilitate progress in meeting couraged to exploit more promptmajor goals for highway construe- ly the technological developments
fa'cjlities,
community
Another facet of the defense ef¬
fort
their
Reductions
ation
the backlog of demand
schools, water and sanitary
meeting
or
ment in defense
quantities
insure
Impact
other
through the government's budget
might be re-examined in order to
Measures Disarmament
the
on
hand, provision for all types of
economic expansion may be made
would
Thursday, March 21, 1957
..
.
Economic Indicators together with
a continuing flow of authoritative
and hearings on such
topics as taxation, automation*
low-income groups, economic stabilization. and monetary policy,
Though
business
a
substantial
opinion
such
body
as
of
that
questions, given expression by Secretary of
Volume
185,, Number 5622
„
^
.
The Commercial and Financial Chronicle
Humphrey, has weU--than 4 or 5%-of the labor force.-- ment support in the financing of esting figures. So far as! Aitierigrounded reservations, the Federal; The theory is that they are like- housing.
can
corporations are concerned,
Government
and
both
pblitical. wise swiftly contractable during
(5). Public housing advocates, the ratios of cash and Government
parties are pretty firmly corn--periods
of * labor and
materials social workers and others highly to current liabilities had declined
ihitted toward policies that keep shortage.
Similarly, taxes should interested in slum clearance, urban in 1956 to 46.2%, a level one-fifth
jobs in most areas somewhat plen-vbe kept high or raised during a renewal and community develop- lower than
only two years earlier,
tiful
and
opportunities to;find- boom and lowered at the outset ment
will
obviously
work
for a level odoriferous with familiar
them relatively abundant for labor of a slump.
,
Government action, Federal, State liquidity
problems
of the
'30s.
ready, willing and able to work.
But most sensitive of all eco- and 1(>eal, as long as inadequate Many corporations
have already
commitment here
seller's, market
a
only
keep1
for, labor, v not
general
in
arSLS'
The
to
is
but
specific
in
housing and slums exist and no
just business buying and invest- matter where they exist, whether
ment to ieveis promoting economic in congested metropolitan centers,
growth
and
stability
are
the in backward farm areas, .or near
monetary controls, that is, adjust- military and defense installations,
nomic thermostats
-
borrowed
on
of;funds,
For some time to
come,
of
wherever
on
addition
-.peoide:Iiye?.'rAlid to •
ment
be public housing ventures, Federal, State and local, farm homebuilding, assistance programs, ; fistill nancial aid for housing of military
buy fnd defense personnel, and per-
persuasion.
Such
controls
imiversallyvregarded.i 4^^ ^be businessmen free to
are
hijpily meritorious? Alhviously,; and sell commodities and seiwices haps even -special legislation so
housing, - Schools, roads, hospitals,.
tbe
open .market.,- Such
has that low-income pensioners and
together with
cultui^l and recrear, been called strategic planning— elderly couples maylife
with dignity
tional
Riinspf
tional facilities. And .what is the!
facilities.. And what j is the , ^hat is, planning the weather, not faee the sunset of life Yfn mmte
face the
of
(to quote
type- of
governmental, stimulus, the rain drons
the British euphemism) in "even_lf^the rain drops
that is least resisted by. builders,!
tide" homes.
labor unions,Y chambers of comf
of this type of
Furthermore, trie very multimerce
and
other .civic; groups? countercyclical policy for housing
; finance
need not be labored.
In phcity of institutions now
par-;
Obviously, financial aids :yt one
as
.•
—*.
...
..
.
.
.
.
.
,
for
..
...
.
-
.
boom
timeg the
"
"
*
*
^
needlor .such aid^
.
off
excessive
.
ated.
Come prosperity and higher
interest
shall
rates
deal
•
matter
(a
with
a
hie
specific types
of marginal investment generates
local pressure of such magnitude
that
a
of
ilationarj-
justifies steeply increased
authority)
schools,
obliga-
hospitals and
is the necesthe
everyday
homes. His argument
sity
soon
local
and
as
depression
it
seems
will
set
monetary authorities lower
inj.eresj.
increase
rates
avajdabiiity
^®
and
credit
encourage
con-
borrowinfi for automoMles
er
"to
advance
__
__
financing
for
highways,
in
govern-
mental commitments (new
tional
bv
t
5 A..g. °
Deak nrosDeritv and inhomes and other purposes, busipressure such as is 1957: "ess borrowing lor capital invest-
President Eisenhower
even
vear
and
consumers
state
As
a
aJbitj-s later)
restrictive affect on
borrowing
by
or
ernm'ents
well-being of our people by helpinff
+rt
nnnnnnin
ing to improve their economic
opportunities,
helping to provide
against economic and
physical hazards, and helping to
build needed public assets."
^pubheg?nv™nt
p
nivcsuucm.
Wmg
n
Pressure
ai
at
®
r
the
Policies
:
,
the
financing of housing has not been
imposed from above.
•
_
It has been
invited, and in some instances,
proposition that at this point lobbied through by forces within
(3)
None
would
disagree
million
commercial
v_,
banks
eminent
influence, if
with
But
there
not dominance,
still
is
undoubtedly
continue
declined
«l2
•
,
FHA
sez-faire,
£95ft
million
in
securities
-owned
tinues to decrease as fast as it has
during the last six months.
preserve
taining
a
fair competitive field for
what
both
and little, without
favor. 'Equally few are
all,
fear
or
big
those who
advocate
detailed
eco-
nomic
planning, industry by industry,
of
production,
prices,
wages
(2)
,
ciations
State
and
Federally-
and
investment—the
philosophy.
.
.
NRA
•
American
relatively
free
regulation, Federal
from
State.
or
Large
finance
companies
providing
consumer
credit
individual
ag
investors
were
were
and
active
before at all levels in the
never
mortgage field
sociation,
~
"
Low Liquidity Ratios
The
js
resulting pyramid of
disturbing
it.
measures
matter how
no
The
levels
of
debt
one
indi-
and
be
other
vet-
There seems
no
Harold G- Halcron.
appears
clearly in
Table
I
com-
piled from the President's 1957
Budget. Note not only the actual
expendi-
ture, fiscal and monetary policies,
erally chartered savings and loan
all,
a
number of automatic
snubbers have been put
ation such
as
and
graduated individual
tern
props
to
income taxes, social
farm
and
together
programs
economic
minimum
as
mortgages
price support
with
other
stability
wage
amortized
such
and
savings
cuunih, guaranteed
counts, &udidiiiceu
the
absolute
oyer 20- to
and
loan
ac¬
toarih, xixing
loans, fixing
amount which
of
oi
prices
drop during one day in certain commodity markets, varying
the margins on security purchases
may
—and the like.
In the second
.public
programs
including
housing
authorizations,
works, flood control, rec-
;iamation, highway programs and
(the like are rapidly expansible
when
unemployment
hits more
has grown
years
central
up
complete
banks—the
Loan Banks.
during the last
with
its
Federal
own
Home
These, too, will prob-
of agencies and programs involved,
Budget
Figures
Understate
Government Influence
I 1
'
1
*
•
i*
(
I '•
_
Actual
Arcnrv_
„
..it...
a.
participation
more
than welCOmed the
tablishment of the Home
Lean
Corporation.
They
the
es-
Owners'
solicit
billions of dollars worth of frozen
assets
consisting of marginal
and
least at the time,
un-
parL
dramatically improving their
Nor
can
Authority
J 958
Est.
Est.
Actual
Est.
Est.
8G
118
17
49
47
own
it be seriously
doubted, should the chill of illiquidity again afflict their mortportfolios,
that
they will
again be actively urging Govern-
for 1958
35
2
I
15
17
33
29
590
474
31
71
54
112
165
145
131
-25
-43
-83
36
452
1,052
968
-20
437
140
Admin.
Mtge.
Present
other
32
85
127
152
54
73
28
43
1
28
43
11
13
17
—22
—29
—30
'
10
Sales
Net
of
common
operating
pfd.
nit.
705
•14
10
income
gages
of
personnel,
4*1
the
pays
annual
oftrl
'
c
1
instalments 01 principal a a
terest, and the house ^ 5^
40 years.
.
-
in
•
Secretary of Defense
insure the loan, the FHA
cannot
-
—
the
Since
docs.
Government
the
of
property
in
Then FNMA with Treasury
funds buys the
mortgage of which
reality it is already twice guar¬
Department
in
antor through Defense
commitment and FHA.
that
item
appears
in
the
payment.
take place
lease-purchase plans where¬
the
Far m e 1* s
13
-1.005
—726
ships
mort¬
217
(—)
the
is the plan
Services Ad¬
using to finance
General
is
postoffices and other Federal
buildings. It is also the way new
14
purchases
purchase proeram, the defense department withholds the regular
quarters allowances paid to mili¬
ministration
203
stock
and other
Net
housing, selects the site, and then
arranges for a dummy Delaware
corporation to become the so-
which
and
purchases,
ts defense housing. Only 4% of
the total value of the housing in-,
volved appears in the budget. The
defense department designs the.
Mutatis mutandis, that
secondary
loans
the heading of "other" in the table,
Home Loan
farmers to secure
3V-i% 40-year basis
or
make 20-year, water facility,
soil-conservation, afforestation
and
pasture improvement loans.
A"n' ,secondar>ket operations):
Treasury
„„„
lion from the Treasury. Budget
expenditures for such temporary
Treasury loans are estimated at
$203 million in 1958.
"ln other operations of the Association, substantial commitments
are anticipated both in 1957 and
1958 to purchase mortgages in-j
shred under the urban renewal,
military family, elderly family,
and other specially designated
housing programs. Additional leg-
by
Market
National
authorized
,
Agency
aids
housing on a
91
1
—_
Federal
157
103
.1
Second, the.
be
to borrow an additional $700 mil-
under
175
Agriculture
should
Similar arrangements
147
91
legislation
Administration
Department
private investors.
amortization
600
100
100
37
program
Proposed
Veterans
14
-13
Assn.:
Present Program
privately, through the
debentures •
billion
interest
12
347
Nat l
tion.„ This will allow the Association to obtain up to an additional
$1
budget is, of course, only the 4%
naid
plus the 40 - year
250
IZII
Housing
stock
sound housing mortgages, thereby
liquidity.
1958
...
in
financing of housing. Historically,
they
ligational
1957
1956
Public housing programs..
other
to buy an additional $100 million
preferred stock of the Associa-
The
facilities:
pr"JnL^Si'tieSmin'
are"not withoutTesponsi'bTlit'yfM uciiege nousing.
CrS°HouS*'aUon"""
Government
Net Budget Expnds.
Expnds.
1957
Pro_ram
by legislation early in the present
session pf the Congress. First, the
Government should be authorized
* V
community development &
Federal
Even the commercial banks
(4)
Gross Budget
funds,, new obligational authority
in two. forms should be provided
tary
1 *
' (1) But these quantitative estimates by no means tell the whole
New Ob-
Federal
9bly abide,
jn
place, Government
expenditure
'public
20
legislation,
30-vpar periods, insured hank de30-year periods, insured bank de
posits
associations, guaranteed savings,
the like, a third banking sys-
oper-
and corporate
security
into
commented upon as
called entrepreneur. It borrows
the money f r 0 m a n insurance
new obligational authority of over company
or
pension tund, and
$1.1 billion. Note also the variety builds the house. Under a lease-
Through the rapid growth of Fed-
First of
ar;e
expenditures but those proposed,
including a total of recommended
.
Government
-
^
This volume, islation to authorize new pur- chases amounting to $250 million,:
including $50 million for coopera-,
five housing is recommended for
the fiscal year 1958."
1. (3) a third example, no less interesting, possibly coming under*
much they may work to alter the September published some interion among economists and busi- rules.
TABLF I
nessmen
alike is that now domi(3) Savings and loan associaFederal Participation in Financing of Housing, 1956-1958*
nating the Federal Government— tions have also been highly active
namely, that efforts to even out in securing the passage of legis(Fiscal Years —In Millions)
Recom¬
cyclical fluctuations should con- lation promoting Government aid.
*
mended
on
-ii.
enable
Association
immediate
By far the largest body of opin-
centrate
..
V
"To
to
An indication of the number of
different ways in which Federal
housing monies are being utilized
and
amortization payments are
high when compared with net disposable or otherwise non-obliprospect that they will seek to gated income. Liquidity ratios are
CllU
end LlUVCIIlillClH JJdl HtljJdll JI1
Government participation 111 a \j vv • ah that icgaiu, the yvvuxiiiCij
in low. In UJOI regard, ujv Securities
the financing of housing, however and
Exchange Commission
last
Legion
to
.
sale of non-guaranteed
Uoasin*
All this took place
say,
erans' organizations.
similarly
pi M43 bf the,
on
follows:
dlverse and inconspicuously
tucked away in the labyrinth of
Government are the governmental
financial activities affecting hoUsing that no complete survey has
^et appeared. But the National
Bureau of Economic Research has
announced the publication soon of
a volume entitled Federal Lending
a.
L°a.n Insurance by R. J. Saulmer <now Chairman of the Council of Economic Advisors); Neil H.
Jacoby (formerly a member) and
is
because
Similarly
with respect tothe Federal National Mortgage As-*
had
in
Profusion of Governmental
the VA is vidual, corporate, and Government
to a substantial degree debt when compared with respecof the
activities of the tive net assets are high.
Interest
Needless to
it
>
listed ip. the table
195fi.
in
eon-
to
namely, "that Governnothing at all except to
peace and-order, main-
do
invest-
billion."
(.2)
.l~T7i
reacting cumulatively
through the intricate, interrelated
pattern of the present financial
setup, could readily touch off a
sauve-qui-peut scramble for liq-.
uidity that would inevitably increase
Government participation
in the financing of housing.
--
Sgs'anHan ai":
The MOO
pf Government
argument how, There are a few. financing of housing, especially if
who still prescribe complete lais--the number of housing starts conment
'
Budget message, the dollar figures
confidence
support oniy the national banks.
participation in the
spate
a
the .extensive .private
to
gone down from 57.3% in 1954-to
45.5%
.
viet
,•
-
projects will be completed by the
end of 1958 but more important,
win provide* .the first complete
should
be
noted
despite the record how Government extension
in world history the United States the housing industry itself.
tight money policy of the Federal of credit and guarantee of loans
cannot afford another major de0) The 20-year legislative rec- Reserve Board, the major reason by private financial agencies depression.. The economies and al- ord of FHA shows all along the being that most lending activity vel?Ped> the-services they offer,.
legiancts of our Allies, if not pij line the evidences of eager ; cor na'kes place in areas outside^- the'the ^records, of their experience,
the Free World, would certainly operation by home builders and
jurisdiction of the Federal Re- and their impact on private finance
be thrust toward the orbit of So- housing
contractors.
They
will serve Banks, since they control and on the ec°nomy generally.
.
the
^
"An estimated 41 slum clearance
and mortgage debt to Gov-
sumer
million, FHA $9o0 mBBon conmortlalS $500 milUon"
any
irra*ks-rutus
Government participation in
Implications of Counter-cyclical
continuing Government action to
Preserve
markets stability
and
order. In 1956, for example, life
insurance companies through direct placement and in competition
commercial banks put more
money into real estate mortgages
tban ever before—$6,800 million,
The VA mortgages totalled $1,750
tax-exempt,
Grass-roots
me
\
rrpfsurp
message:
.rtAn.-
short, monetary policy oper- chartered lent $10 800 million on
ates continuously, varying from mortgages. The 500 savings banks
active ease to active restraint and jncreased their mortgage holdings
back. The Government, directly
$2 300
million
commercial
and indirectly, is thus continu- banks roughly $1,000 million. In
ouslv
ously affecting the financing of addition, funds were being inaffecting the financing
housing
vested
by large pension funds,
safeguards
pro#
the Association to
45.5% in 1956.
monetaryticipating in the financing of
Needless to say, even a rela- continue making available a readuty of taper- bousing is setting the stage for tively minor shock to
investor sonable minimum of mortgage
whether bv
bujdness
>whicA-I;
urban'renewal
m41 of the text of the
grams on p
centrai
authorities have the
vanish, wber\ the .local relatiye
buying
surplus of labor hps been* pllevi-
Compare
said 'about
channeling
are
from 61.1% in. 1954 down to 53.2%
in 1956. Nor, were individuals any
hotter nff
Th« rofin
fhoii.
better off. The ratio of their con-
implication
t Nor; does /.the
internally,
,
,.
tt*
under $50,000,000* ;
however with what I#
figures
expansion to low loan-ratio bank- ment in redeveloped areas, these
ing areas and re-examining the. 572 projects-will ultimately inadequacy of depreciation and eapM" Volve total costs of more than $2.5
tal consumption allowances. The billion: of which Federal capital
liquid ratio, similarly computed, grants will provide an estimated
±i
.
story* take the-first item showing
dollar
;
nancing,. especially seeking via- underway for 246 more—many ofprice increases to finance invest--these in smaller cities. In addition
there will
implemented by open mar.surplus, -what types, ket operations, variance of reserve
projects are most easily earned? ^tios, and
programs of -voluntary
relative labor
v
begun to review their dividend by that time 285 projects will be
and retained earnings policies, are in process of actual clearance and
seeking alternative methods of fi-, development and plans will be
designed toad-
v
r- .
i
implication for housing is,
obvious. .If work opportunities are
ment of interest rates
to be encouraged mlocalities
i. --V
-i-
•
''
33
(1365)
the Treasury
The
')
<1=7
are
being built with guar¬
mortgages so at¬
that the Bowery
anteed ship loan
tractive at 5^j%
U2
Net trust expends.
gage
SOURCE
fiscal
year
OF
DATA:
ending June 30,
p.
ioss.
—500
—272
M39—Budget
Savings Bank is
of
the
United
States
Government for
the
reported to have
Continued
on
page
34
34
(1366)
The Commercial and Financial Chronicle
Continued
Such
from page 3$
skeptics would prescribe,
such measures as get at
instead,
overactive
Government's Continued Role in
Financing of Housing Industry
bought $10,000,900 worth in
one
gulp.
In each
instance, the dollar fig¬
that appears in the budget is
ure
not the whole amount but
the
merely
interest, taxes, and instalment
payments. The yearly quantitative
figures in the Budget, therefore,
understate
actual
economic
and
financial impact by a great deal.
Financial Institutions Act of 1957
great
became
the
overlap,
confusion, and competition
various
financial
among
that
agencies
Senator
Robertson, Acting Chair¬
the Senate Banking and
Currency Committee, introduced a
253-page bill to rewrite and mod¬
of
man
ernize
existing banking laws.
committee
month
made
His
detailed
a
study, secured 175
six-
recom¬
mendations from bank
supervisory
50-page report
from a 27-man
advisory commit¬
tee of practical
banking experts.
Further hearings were begun
yes¬
terday.
agencies,
and
a
bill, if en¬
far-reaching
acted, would make
changes too numerous to
mention
here. Among those of major inter¬
est to mortgage bankers are the
recommendations
a
p p ro v
thority to national banks
ing
au¬
to make
loans to finance construction of 18
months' maturity; to make loans
on
leaseholds having at least 10
to run beyond the maturity
of the loan; to make loans on Fed¬
years
eral
lease-purchase contracts for
public
buildings; and to make
mortgage loans on industrial prop¬
erty for working capital purposes.
National
Not
since
the
of
famous
1907
Aldrich
made
com¬
prehensive investigations that
sulted
few
a
creation
System
of
the
has
later
years
a
Federal
survey
re¬
in
Widel^ advocated
demic; and
Reserve
been made
in
banking,
aca¬
governmental
circles,
received the
backing of Presi¬
dent Eisenhower in his State
the Union message as follows:
"I believe the time has
conduct
a
broad
national
come
of
to
inquiry
the
nature, performance and
adequacy of our financial system,
both in terms of its direct
service
the
whole
economy
and
in
to
terms of its functions
anism
through
credit
believe
as
the mech¬
which
monetary
policy takes effect.
the
thorize
Congress
should
I
au¬
commission of able and
qualified citizens to undertake this
vital
a
inquiry.
Out
of
their
find¬
ings and recommendations the ad¬
ministration would develop and
present to the Congress
any legis¬
lative proposals that
might be in¬
dicated for the purpose of
improv¬
ing
financial machinery."
our
There
good
will
deal
body such
National
undoubtedly
of
be
a
whether
debate
a
as
was
the
Economic Committee,
There will be debate
or
over
its
constitution, powers, appropri¬
ations, duration, scope, and repre¬
sentation. The
numerous
bills that
have been thrown into the
hopper
thus far indicate the
widespread
interest and divergence of
opinion
concerning
posal.
But
•housing
ment's
are
the
President's
pro¬
the
implications for
plain.
The Govern¬
interest
and
the fin»nHn<* of
participation
housing show
signs of diminution.
IV
The
Clamor f«r
general
rule.
that
tainty
class
they
or
Selective
Remedies
tion of
a
truism
a
general rule usually in-
that
the anolira-
It
is
makers
cer¬
a
belong to a
they will put pres¬
the administrators
law¬
or
needing
or seeking their
inevitability that
they will advocate selective inter¬
pretations, exemptions, or dispen¬
support.
It is
sations.
too
small
are
to
many groups
in
tariff
special
secure
consideration, they will
the way industries and
making
"package
and
deals."
log-roll
areas
do
negotiate
The
upshot
as
Plato observed thousands of
years
is the government, like
ago
person
meddling
becomes
going
with
harried
a
hither
say
and
sick
a
nostrums,
busy
trative and legislative programs of
assistance and participation.
being pusned
discussion
the
of
tion
of
government
capital investment
ernment
participation
of
nancing
almost
"tight money" policy provides
a case in
point. Two main schools
of opposition
exist.
First, those
skeptical about any counter-cycli¬
balance
favor
such
policy (or
find other types of
counter-cycli¬
cal policy even more
repugnant)
a
but dislike its differential
(or dis¬
criminatory)
What
housing—they would;
the
Majority
.,
A
those
,
just
number
„
•
^
such
mentioned
on
few
are
monetary
in
ervations
about
themselves
pletely
impact
consumers
are
unorganized,
finger-pointing
the
wing of the Federal Reserve
to give it broader
scope and more
power.
may express doubts that
the
supply or cost of credit is a
or important factor.
They
will frequently use statistics to
major
show that total spending has risen
much
faster
than
the
supply
of
money. Total
spending in 1956 was
times that in 1939, while the
supply of money was but 3.4 times
4V2
as
high.
Between
November of
November of 1956, the
money supply (that is bank de¬
posits plus coin and currency out¬
side banks)
increased onlv
1955
and
2%,
but barik debits
increased 7%.
•
,
the
ening
costs
of
at
.
consumers
the
is
terms
measures
and
,
sometimes
mention
even
possibility of another RegulaBut
supply
but rather to aggregate
the
is another matter.
York
State
Levitt,
June
rate
rate
had
the life
of the
York
for
more
vember,
times
124
a
last,
to
a
the
rate
No¬
of
29
was
Total
year.
have
may
the
in
In 1929. the rate
year.
times
supply
at
and
money
minor
a
State
rela¬
freight
the
and
total
agricultural
mineral
Over
issued, it cost
and
taxpayers in
$2,729,842
some.
they
November
than
would have cost them in June."
it
:
"This." writes the eminent'Walter
Lippmann in his
well-known
column,
It is
a
"is a very serious thing,
brutal fact which interferes
greatly with the ideal theory that
the
localities
needs,
like
should
the
meet
need
for
public
schools,
hospitals, low-cost housing, roads
and
public recreation."
Indeed,
so
it may.
At this time.
But why,
when construction costs are at an
hieb
in
all-time high in t.hf» face nf imfarp of unthe
paralleled
shortages of materials
skilled labor must State and
and
governments
do
all
these
things
at once now.
Scarcely ''a
bond issue fails to pass. Tt
may be
but a
short wait
until
interest
rates are lower, costs
^
down, and
seekers
more
governments
hav
plentiful.^ Will
t
e
he
ahead.
wisdom
being
are
made for the Federal Government
to pile Ossa on Peiion and
grant
increased
aid
to
State
be
financing,
needed.
if
This
in-
tivate
for
to
such
special
assistance
If
necessary.
and
cars
harvest
manufacturing
output in any one year.
Moreover, those who
bills,
it
is
stated,
would
"a
saving to prospective
veteran home purchasers of half a
billion dollars in interest
charges,
put
^
very '
the
save
in
veteran
simply,
additional
payments
5%
if
he
were
and
pur-
5%
than
those
for
FHA-insured- mortgages.
Otherwise, GI home loan guaranty, program will lapse or fade away.
One question
to have
seems
caped consideration, Unless
spends'*,less
item
how-
other,
or
with
that
serious
which
manner
is
fraught
inflationary dangers
amount
redeemable
at
the
$57.3
billion
option
of
is
the
individual holder. How could
gov¬
ernment raise
$25-$30 billion from
other
out
than
public investors with¬
resorting to the most direct
and violent
Box
least
The
srnau
duce
its
resort
lines
of
higher
to
rate
su^
n0^.
ness
on]v
to
make
.
poses,
for
all
especially for schools.-
afoot
on,
arise
.
u.
est^ates6onmveterani
esi
rates
VA and
on
veterans
u
.
.
hmfiils
nousinb,
on
on
FHA loans, has been well
pulalicized.
to
The
"do
number
of
something
for
to
the
moderating, and
influencing the financing
hnnciinfy
inflationary
measures.
Because of the change in interest
rates, we may see a repetition of
what happened in the 1920's
when
investors liquidated 50% of their
bonds.
The problem
of what to do about
savings bonds
may toe the largest of all.
.
Hieing
omaii
Re.
rienartment
^ P. ^ "L me
Business Re¬
of
Developing Foreigii Markets forFarm Products—A Sumof ProiYiotional Activity—
mary
Superintendent
U.
of
Documents,'
Government Printing
S.
Of¬
fice, Washington 25, D. C.—pa-;
per—35c.
Dictionary
Paper
of
used
'
in
Defines
—
■
industry-
paper
American
Papers and Pulp As¬
sociation, 122 East 42nd Street,
New York 17, N. Y.
jonomic
Savi
Economic Study of Savings Bank_
ing" in New York State—Savings
Association of the State
Banks
pro¬
for vet-
1625^
Washington
search, University of Michigan,:
Ann Arbor, Mich.—$2.00.
,
multiplying the activities of governmeri|
nf
.
terms
•
varying,
W.,
N.
Gault^-Bureau
to
j^S Is
wJjerever general
credit control pinches, movements
,
Street,
PUs
it
,
,
Edition—-Manufacturing;
Suits in
non—bank
especially
,,
Book—
6, D. C.—$1.25.
concerns.
..
.
Facts
Chemists' Association, Inc.,;
Eye
gjve it increased lending
with wider authority to
loans
(Paper).
Industry
Third
'
Administration next June 30,
smaller
State Land Go.,
Campbell Avenue,
Tucson, Ariz.
the life of the Small Bu«;-
ppWer
v
.vr-,
North
Chemical
re-
make
plans
are
six
House, Post Office
.Greenwich, Conn.—
.
some
lenders, and modify its expansion
Piant ancj equipment. As a rerenew
of
14 inch facsimiles—
dorf—Canyon
money
been
credit,
New
Stores, 1954 and 1955—Edgar H.
impact of tight
business has
East,
1736—Portfolio
242,
2708
nr
(4)
University,, 100
Square
by
$10.:
tvpes of government stimulation
"lanso
"lapse or faHo away"?
fade awav"9
or
current
Retailing'*;
Cattle Ranching & Farming In
* Southern Arizona—-W O. Fraes-;
inflationary demand be moderated
brought under control? -Isn't
let at
to
inch
Document
an
of New
Conclusion
York, 110 East 42nd St.,
17, N. Y.—paper,
New York
skep¬
because f 67 billion of the Govern¬
ment debt is held
by individuals
of
back
10
or
this the time to
of
Calligraphy-Parchment
calligraphy for
framing—Subject matter dating
on;
can
York
facsimiles of old
es-
some-
one-somewhere
some
New
Ellsworth
Business
from
prescribed
D
T
"Journal
of
New
Washington
But veterans would still be
entitled to lower down payment
rules
c„™.rvUnr_A
Fidd
York 3, N. Y.
VA guar-
to
~ap
Hulquist—in
issue
4V2%.
local
these
mortgages
Canital
The
Tralmng Field—T. D. Ellsworth
J. S.
and
to
consolidate the veterans home lo'^n
anteed
<^nr„
TraLn?
Training
guarantee program on July 1, with
FHA's mortgage insurance.
This
would indirectly result in increason
The
y
Press, Princeton, N. J.—(cloth)
$7.50.
for his mortgage loan."
ing the interest rate
Development,
-
Programs—Ameri¬
Mvcenae*
Rrjnnh
•anch
interest
required
Aid
City of Agamemnon — George
Mylonas—Princeton University
they
.
tical about the
remedial powers of
in
AnHpnt
^n®,ent
veteran
average
Economic
the
Enterprise Association, Inc.,'
14th Street, N. W., Washington 5, D. C.—(paper). -
—
pay
-''.v.
v
1012
who purchases a $14,000 GI home
about $5 every month for 30
years
because that is what it would cost
the
./v..v
can
pur-
pass^.
_
governments
posals
are
higher interest rates point out that
the policy of
trying to restrain
credit
eign
and
.
mean
To
:■
(American Private Enterprise, For¬
ac-
additional billion dollars
an
these
•
-
immediately for purchases
chases,
,
Bookshelf
■
mployee
VA rate to 5%
Some argue for
flexible interest rate
ally-insured
gaffs/;
In his
all Feder-
guaranteed
or
t,-
on
a
*
,,
mortn
Budget message, the Pres-
ident put the
case
"Increased
for
credit
unattracite
lenders
interest
rates
hrino-
bring
rates
then
interest
mbrtgages
of
the
at
many
permitted.
rates
into
to
maximum
line
^
on
with
To
insured
market
interest,
the Federal
Housing Administration has permitted
adjustments in all rates
which
were
statutory
not
already at their
ceilings. Legislation is
recommended
to
permit
similar
The
ieast
answer
so
long
seems
to be
it is
com-
as
mjtted to the goals of promoting
economic growth, providing maximum
high
demands
private
yes>
thus:
fhLrfn^reT^nd'g^ararteed
mortgages
housing?
opportunity for sustaining
of employment, and
levels
moderating
the
busiriess
Do—Waldo
at
The a»swer comes 0ut in the
diversity of
tio"s'
new ®nes springing
and
old
....
ones
branching
.
.
.
Section,
CaliTechnology,
(paper) $1.
of
Bayside,
1956-—Final
Z.
on
and
Indus¬
—
the
Use
Queens,
report
of
of
Nuclear.
Materials—New York State De¬
partment of Commerce, Albany,'New
ud
out
.
Know
Fisher
Calif,
Pasadena,
Council
af£i™aUve, als?
E.
Institute
Explosion
What
Should
Shm,1H
Relations
trial
lornia
July
cycle.
Appraisal:
Supervisor
in
,
comPetihve profusion, each lookmg to-Government to maintain a
sernklance of order,
Similarly,
generative
of
continued
Government
activity
in
home finance are the continuous
readjustments likely to be made
York.
Export Control 38 Quarterly ne
Control, 38 Quarterly Report—by
merce
Department
U.
—
S.
Com¬
of
Government*
Printing Office, Washington 25,
D.
C.—20
Fertilizing
Takeo
cents.
Forest
Shibamoto
Crittenden,
Lands
-—
—
Dr.
1
,
V;
L
.
Business
to"
and',
Needless to
plans
now.
this .will
billion
$1
interest
4.078.
.
Govern-;
GP' '-
.
as
aggregate of business,
government and consumer demand
as does the
supply of
to
-
in
of
in' 1940,
year
Joint
'tti$ $13.8 million
borrowed
as
a
to
bond
districts
say,
times
the
average
climbed
build
18
New
Arthur
borrowing was
November, the average
In
to
exam¬
over
As
school
on
2.760.
the
then
for
turned
before
fi-
Economic Committee:
ple,
area,
"tight
Comptroller,
testified
job
money
of
government
nance
demand implemented
by a higher
velocity of circulation of money.
In the New York
total
impact
local
on
billion,
than
authority for the President
would
(2)
of
totals
and advance commitments to
purchase GI mortgages at par/
"
money"
present
earmarking
be used
tight-
raising the
Indeed,
;
meni participation in the financing
premium: of housing.
guaranteed
supplementary
x
credit.
administrations
and
$1 billion- of
FNMA special assistance funds to
but
,
4
-
par value. Since-
at
$5.5
should
on
also
VA
more
ciucjes
causing
are
'
present, ceiling
interest rate of
41^
The proposals also provide
for
on
com-
a
,
consumer
few
a
local
They tend to regard the current
inflation as due not to the
of money,
counterpart
SUpp0rt QI home financing at the;
politically
ground that they
inflation.
There
New
May be placed under
the
and oper-
scope
various
the National
Insurance
fund
than
more
their industry.
or
(1) Since
its
NSLI
provide
coun-
of its impact upon
But they have grave res-
others.
25%r.t>f
in
^e
approve
school
Or, they
to
up
mortgages at their
.
as
Boards
<
They
tend to advocate that the
Federal Home Loan Bank
System
pbtent market
vest
,V reserves
Prefers
.
views
ter-cyclical policies administered
by the Federal Reserve
"In
They
the
controls seems likely to .increase
rather than abate.
The outlook,
therefore, is for continued debate,
experimentation and readjustment
of agencies; methods, operations,
One
secretary of the Treasury would
be authorized and directed to'inLife
The great majority favor
reliance
major
other solutions.;
^ Service
(B) Adherents of
impact.
(A) The first group point out
how limited is the area which the
Federal Reserve Board controls.
Fannie
seeking
ar^
Gov-
cal
monetary policy as an effective
stabilizer.
Second, those who on
of
Finally, the clamor for selectfve;
many influ.of .the Congress
members
group proposes a GI mortgage assistance
bill
under 'which
"the
in-the £i<
eliminate.
pn the other hand,
.
ential
business
and
programs.
small resistance to
pres¬
ations
veterans may
more
v.;'
contin-
inrouga
up
scarcity programs whether
publicly or privately policed, by
capital rationing or ,other lifnita-
,
ent
in the permitted
Administration,
obtain financial agencies tq such grass-;
these loans. s V- Legislation is.also ;roots
groups as:Yeie^ahs, vfamiem,;>
proposed
to adjust the interest * small
ued
the
Higher Interest Rate
Thursday, March 21, 1957
.
business^ ; elderly couples,
daily on individuals and-their rate on direct loans so as to
keep "public housers,"! Savings' and loan >•;consumption,
by .vigorous ;anti~ it. the same as on guar a
nteed;lbaft%;,as^ociati ons;;
trust action
wherever'•prices are in conformity with past practice." banks.
' * •"
body
-
enacting,
yon
loans guaranteed
on
Veterans
that
so
revising, repealing, re - enacting, helpless
group with no lobby to
adjusting, readjusting its adminis-^ fight for
them, there is universal
The
the
by
a»
If there
government
It is
if
area
sure on
temporary
other body should conduct the
in¬
quiry.
no
the
tion
commission,
a
joint
Banking
and Currency Committee of
the
Congress, an executive-legislative
in
of
the
thq entire financial structure.
and
individuals will doubt the wisdom
directly,
interest rates
by rigorous limitations* of public
works, by higher taxation, espe-
and
Monetary Commission
Commission
into
hardships. It is a
reasonable probability that such
Current
Senator Robertson's
it
individual
each
So
of
licts
demand
...
Ur.
E.-D.
Director of Re--
Volume 1155
Number 5622
.
.
The Commercial and Financial Chfonicle
.
35
tl367)
.'-jr
j» "H* £
-
searchj^Nitrogem Divisionj -Alfred *i Continued
Chemical & Dye Corp., 40...Reetor
St.,
bn
New
Foreign
York
'
request-
.
and
siderations
Council
N,
6,
Aid
Back¬
Major Policy Con¬
United
-—
of
Chamber
the
have been idled and at Chevrolet where 250 were laid off at the
Willow Run plant on March 8. Ford truck volume also is
being
States
International
hurt.
of
Commerce,
103
Avenue, New York 17,
N. Y.—(Paper)—30c.
Park
French
Economic
S
i
e c t
o
output, meanwhile, showed a slight gain the
past week, the scheduled 141,324 volume comparing with the
-year's high of 147,163 recorded in the week of Feb. 4-9, accord¬
ing to "Ward's."
n,
French Embassy in the U. S. A.,
Books
Relations—Outstanding
in
ences
and
1956—Selected
On
h[o.
74—Industrial Rela¬
tions Section, Princeton Univer¬
sity, Princeton, N. J. (paper),
this
decline from
aid to
cers
National
—
Association
Businessmen's
Interest
of
Health
Michael
M.
*
There
—
Insurance
—
for
Guide
to
Intensive
•
tion, 1515 Broadway, New York
..
in
Cuba—Background, pros¬
pects and investment appraisal
Profit
Remodeling:
Frontier
United
for
of
July
to
1975
with
1~,
Enterprise
'■
the
U. S. A., a East
New York 21, N.
Street,
$1.25.
Public
■
the
was*
1939.
•.
„
Above Prior Week
The wholesale food price
jndex, compiled by Dun & Bradstreet, Inc., rose moderately to reach $6.12 on March 12 from
$6.09 in the preceding week. It was 2.7% higher than the $5.96
of the similar period a year ago.
Higher in wholesale cost the past week were flour, corn,
hams, bellies, cheese, sugar, cocoa, eggs, potatoes, steers, hogs and
lambs.
Commodities quoted lower were wheat, rye, oats, lard,
milk, cottonseed oil, dried peas and raisins
The index represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.
Wholesale Commodity Price Index Dips Below
Of Preceding Week
that
the
(revised) a week ago.
Following
industry's
year ago
the actual weekly production
placed at 2,449,000 tons or 99.5%. The operating rate is not
The
of
Electric Output
of
Registered
electric
a
Lower Trend Last Week
energy
distributed
by
the
electric
light and power-industry for the week-ended Saturday, March 16,
1957, was estimated at 11,650,000,000 kwh., according to the Edison
Electric Institute.
This was a decline below that of the week
an
price
On March 11
8.
the index stood at 290.40, compared with 290.66
previous and with 282.44 a year ago.
Grain prices were irregular and held generally within narrow
limits. Wheat prices rose fractionally and exports to Brazil totalled;
a
week
more
than
of Corn
to
9,000,000 bushels last week. There was
Europe and prices climbed slightly.
a
rise in exports
Moderate price declines encouraged the buying
buyers anticipate a small crop again this year.
of
rye,
as
After
subsiding early last week, world sugar trading rallied
of the period.
The domestic market was quiet, and
prices were close to those of the preceding week.
Following early gains, cocoa trading decreased at the end of
at
the
end
the week.
Prices slipped fractionally. Warehouse stocks of cocoa
slightly to 285,595 bags from 284,862 bags a week earlier, but
were below the 331,912 bags of a year
ago. Lard futures declined
moderately last week, despite some small lot buying. The market
"was sensitive to changes in vegetable oils.
Whi)e February stocks
of lard rose abov^ those of Janbary, they .were
npticeably less than
those of February, 1956.
'
There was little change in hog prices last week.
Western
hog receipts were appreciably belo.w those of Jast year. Steer
prices rose substantially, with a continued great demand for
rose
choice and prime grades.
Domestic cotton prices fell
moderately last week,, reflecting
improvement in moisture conditions in growing areas and
reports of additional soil bank cancellations.
an
According
to
the
New
York
Cotton
Exchange,
export
of
cotton last week totaled about 206,000 hales, compared with 295,000 bales in the prior week and only 62,000 bales in the com¬
parable week last year.
the
For
through March 5, total cotton exports were
4,908,000 bales, compared with 900,000 bales in the
similar period a year ago.
,
'
season
estimated at
ingot production
duction 2,504,000 tons." A
was
Level
early upward movement, the daily wholesale
index, compiled by Dun & Bradstreet, Inc.,
slipped slightly at the end of the week. It fell to 290.33 on March
commodity
rate for the weeks in 1957
Is based on annual capacity of 133,459,150 tons as of Jan. 1, 1957.
For the like week a month ago the rate was 97.8% and pro¬
%
toll
This
Inez-reported.
Bradstreet,
Wholesale Food Price Index Rose Moderately
Trade Volume Showed
But Was
Some Expansion Last Week
Moderately Under 1956 Level
Although consumer buying expanded somewhat the past
week, total retail trade fell moderately below that of a year ago.
There were year-to-year decreases in purchases of major appli¬
apparel and linens, but sales of furniture slightly exceeded
comparable 1956 levels.
ances,
the
volume
While
69th
Y.—
Public. Rela ions
Tested
Institute announced
of steel companies, having 96.1% of the steelfor the entire industry will be an average of
The-amount
Programs
Steel
percentage figures for 1956 are based on an annual capacity
128,363,090 tons as of Jan. 1, 1956.
Relations* Ideas in Actionr
500
,
and
comparable because capacity is higher than capacity in 1956.
—
Illustrated survey of Sweden—
Swedish Chamber of Commerce
of
rate
Iron
93,8% of capacity, and 2,461,000 tons
The
—
.
Private
is
also
93.5% of capacity for the week beginning March 18, 1957, equiv¬
alent to 2,392,OOOtons of ingot and steel for castings, as compared
search, 7Q9 South Wes.nedge
Avenue, Kalamazoo,, Mich.
->
Product of
eastern
1956.
American
operating-
Harold C. Taylor—W. E. Upjohn
Institute
forCommunity Re¬
.
an
Coiuinuauou
making capacity
'Population of Kalamazoo County,
as
and
quarter
The
■
Forecasts
mill
upward, and scrap prices are still declining.
Broadway* New York 36, N. Y.
—$1.75.
...J., v
Estimates
Buffalo
a
Estimates at
ment.
Profit-r-American Manage—
ment
Association,
Inc.,
1515
and
troubles in
at
only downward estimate is in motor vehicles and equip$355,000,000 are down 18% from the $431,000000 of the second quarter of 1956.
The publication declared that steel prices continue to inch
"
for
1956
this week, the third
The
—
States
Mich.:
Labor
for the drop
Reduced demand for steel contributes
gain over 1956 s
figure. $142,000,000.
Transportation equipment
(excluding motor vehicles)
estimate second quarter
spending at- $157,000,000; a 52% gain-over the $103,000,000 spent
in the second quarter. 1956.
Organizing the Research Function
•-
which
builders
Gypsum
Com¬
pany, 300 West Adams Street,
Chicago 6, -111.—(Cloth).
.
strike
a
second
New
The
Builders
able week in
of capacity.
spend $169,000,000 in the second quarter, a 19%
J. R. Williston & Co., 115
Broadway, New York 6, N. Y.—
...$1.00. X
—
Operative
year
metalworking industries, expect capital spend¬
ing to total more ih the- secorM 'quarter this year than it did in
the second quarter of 1956.
Primary iron and steelmakers esti¬
mate second quarter spending at $394,000,000, a 28% increase over
the $306,000,000 of the second quarter, 1956. Nonferrous industries
will spend $203,000,000 in the second quarter, a
whopping 130%
gain over 1956's second quarter figure of $88,000,000r Machinery
builders-(except cledtrical) expect to spend $353,000,000 in the
second quarter, a 39% said over the $254,000,000
of;jBee$jpd quarter,,
1956.
Producers
of
electrical machinery
and equipment' will
Courses
.
ton
Five of the six
and Seminars for Executives-—
Oil
it.
of
some
reasons
of decline.
in second quarter,
American Management Associa¬
36, N. Y.—75 cents.
120,000,000
publication said there is still a lot of surge in the econ¬
Metalworking industries in the second quarter plan capital
spending totaling $1,600,000,000. 23% above the $1,300,000,000 spent
ers—U. S. Department of Labbr,
Ninth Avenue, New York 1,
1957
record
The
341
%'/•*"
a
omy.
Women Work-
.
for
plants.! producing oxygen for. steel mills
hampering steel production, this trade weekly observed.
■
N. Y.-—35c.
.
Ohio mill pulled steel proa action rates uown mere.
Democracy, 112 East
Street, New York 3, N. Y.
(paper), 10 cents.
on
look
assorted
one
to
19th
Handbook
are
consecutive
of
in
even with the 300 a year ago but exceeded the 226 in 1955/
Failures continued above the prewar level of 298 in the compar- •
January and February averaged 97.3% of capacity, so operations
during some of this year are expected to go below 90%.
Industrial
'
Steelmakers
and
Davis—League
1
.
could be achieved by operating at an average of 90%
Survey—Opinion Research Cor¬
poration,
682
Ewing
Street,
Princeton, N. J. (paper).
National
of capacity last week, a 3-point
preceding week, "Steer" magazine reported on
corning. It will result in an ingot rate closer to expected annual
The rate is expected to drop below the 90s in April. It
pointed out that this slowing down of steel making was anticipated,
Companies, 61
New York 6, N. Y.
Activity In National Affairs
the
output.
Broadway,
(paper), on request.
Local
Capacity
is
Offi¬
Trust
301
to
about
truck
Tire metal working weekly said that a further orderly decline
Shares—An
Bankers and
Investment
:
ana
Monday last.
,
1956
car
Mills produced steel at 92%
Survey — Superintendent of
Documents, U. S. Government
Printing Office, Washington 25,
D. C.—$1.50.
-
&
Dun
week,
declined
failures
14, from the postwar high of 327 in the pre¬
week.
Investment in Central America—
Investment Company
ceding
industrial
and
week ended March
cumulative basis, "Ward's"
Steel Production Set This Week at 93.5%'of
20c.
'
a
trucks
in the
Business Failures Eased in Latest Week
Commercial
said, United States and Can¬
production is running slightly ahead
of comparable 1956 levels and will reach the 2.000,000-unit mark
-
ada combined
Refer¬
131,207
•*"*;
previous week and 23,739 a year ago.
Canadian output last week was placed at 3,960 cars and 1,341
trucks. In the previous week Dominion plants built 8,749 cars and
1,309 trucks, and for the comparable 1956 week, 9,755 cars and
2,313 trucks.
car
Chrysler Corp. garnered 20.8% of last week's auto assembly
according to early-March market studies is holding that posi¬
tion in industry new car sales.
610 Fifth Avenue, New \ork 20,
N. Y.—(paper).
Industrial
i
Passenger
Technical
and
Bulletin—Economic
-
during the week. In the corresponding week last year
cars and 23,739 trucks were assembled.
Last week the agency1 reported there were 22,261
made 'iii the United States.
This compared with 18,835
4'
page
.
Economic
ground
from
the
in
preceding week,
used
passenger
interest
in
new
cars
slipped below that of
models climbed somewhat.
The total dollar volume of retail trade in the period ended
Wednesday of last week was 5% to 1% below a year ago,
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1956 levels by the following
on
.
;
Techniques —
compiled by Allen
H. Center; Director- of Public
Relations, Motorola Inc. — Mc¬
of the
percentages: New England, South Atlantic and Mountain —5 to
—1; Middle Atlantic —7 to —3; East North Central and West
South Central —6 to —2; West North Central —3 to +1; East
Graw-Hill, 327 West 41st
New York 36, N. Y., $5.
-
the
South Central and Pacific Coast —4 to 0.
ended March
Edited
and
and
.Supplemental
Benefit
and
Plans:
Industrial
Geraldine
Industrial
California
The
St.,
past week's output dropped 217,000,000 kwh. under that
previous week; it increased 448,000,000 kwh. or 4.0% above
comparable 19^6 week and 1.836,000,000 kwh. over the week
19, 1955.
Economic
Relations
M.
T.
Im¬
Loadings of revenue freight for the week ended March 9, 1957,
by 31,598 cars or 4.5% below the preceding week, the
Association of American Railroads reports.
Section,
of
Loadings Dip 4.5% Below Preceding Week
declined
Beideman—
Institute
Car
.
Wermel
Relations
Loadings for the week ended March 9,
Tech¬
1957, totaled 672,386
nology, Pasadena, Calif, (paper),
decrease of 25,213 cars or 3.6% below the corresponding
1956 week, but an increase of 10,103 cars, or 1.5% above the cor¬
$1.00.
responding week in 1955.
cars,
a
U.
motive Technology in the Soviet
Union—James
H.
South
of
Bureau
nomic
Wages
,
17
U.
Business
Carolina,
and
Eco¬
.
and
Labor
S.
Related
Markets,
Benefits
1955-56;
Avenue
in
■
—
of
Labor,
Statistics, 341
New
York -1,
Department
Bureau of Labor
Ninth
Blackman—
Research, Columbia, S. C.
(paper).
.
of
N. Y.—50c.
.
S. Automotive Output
by 1,163 cars, while truck biifput moved ahead by 3,426 vehicles
a
of
year
men's
ago
and
women's
apparel
'
were
when Easter shopping was at
a
noticeably
high level.
Easter occurs on April 21 this year as compared with
April 1, in 1956.
|
.
♦.
Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended March 9,
1957, decreased 10%
from the like period last year.
In the pre¬
week, March 2, 1957, a decrease of 5% (revised) was
For the four weeks ended March 9, 1957, a decrease of
was recorded.
For the period Jan. 1, 1957 to March 9, 1957
ceding
reported.
1%
gain of 1% was registered above
Retail sales volume in New
Marked By Gain of 2.9%
Automotive output for the latest week ended March 15, 1957,
according to "Ward's Automotive Reports," in keeping with the
strong tempo of the industry, lifted its car and truck production
schedule by 2.9%.
Last week the industry assembled an estimated 141,324 cars,
compared with 140,161 in the previous week. The past week's
production total of cars and trucks amounted to 163,585 units, or
ah increase of 4,589 units above that of the preceding week's out¬
put, states "Ward's."
• •
Last week's car output rose above that of the previous wee|k
than
However,
a
Transport Development and Loco¬
University
Purchases
less
Unemployment
Their
plications—Michael
and
before.
that of 1956.
York City the past week declined
2% below the like week a year ago, due in part to the fact that
Easter occurred on April 1 last year, and the current year it will
fall
on
April 21, trade observers,
report.
According to the Federal Reserve
store sales in New York
Board's index, department
City for the weekly period ended March
9, 1957 declined 16% from the like period of last year. In the
preceding week, March 2, 1957, no change was reported. For the
four weeks ending March 9, 1957 an increase of 1% was regis¬
tered. For the period of Jan. 1, 1957 to March 9, 1957 the index
recorded a rise of 3% above that of the corresponding period
in
1956.
36
-
it''
(J368>\
c
,
;4#T
yr
Fr
»v*.
'
u'f
a;,
Wt?<, TheCommercial and Financial Chronicle
v
rvVyV .Vr-*
* INDICATES
.
SINCE
in
Adams-Phillips,
Feb.
Inc.
•
20
(letter of notification) 5,000 shares of
(par $20) to be offered to stockholders,
directors and employees for a period of 10
common
stock
officers,
days, the un¬
portion to be offered publicly. Price—$21 per share.
sold
Proceeds
For
—
purchase
of
additional
autos
and
for
working capital.
Office — 10 S. Craig Ave., Pasadena,
Underwriter—Pasadena Corp., Pasadena, Calif.
Calif.
V
Baltimore
Feb.
28
Electric Co.
&
Gas
filed
Proceeds
.
stock
577,883 shares of common
Price—$31
for
ton
Proceeds
construction.
—
To
Proceeds—To
reduce
obligation, purchase tools and for
working capital.
Address—P.
Underwriter—Mountain
O.
Colo.
Box
La
Junta.
Securities
States
322,
Corp.,
Denver, Colo.
Allied Resources
Dec.
14
Fund, Inc.
Corp., New York.
400,000 shares of common stock (par one
Price—At market. Proceeds
For investment.
Underwriter—Fund Corp., 523 Marquette Ave., Minne¬
cent).
—
apolis, Minn.
V
/
>;'>
:
Minerals, Ltd.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.; ;
Proceeds—For mining expenses and
development of oil
properties. | Office — 001 Sherman St., Denver, Colo.
Nov. 23
Underwriter—Lackner
&
•
,
28
240,000 shares of com¬
Price—$1.25 per share. Proceeds—
For partial payment for plant site; partial payment of
obligation to Memorial Inc. and for working capital;
Office—4718 W. 18th St., Houston, Tex.
UnderwriterBenjamin & Co., Houston, Tex.
Howell
&
Co., Denver, Colo..
.
•
York
Co., Chicago,
1
Art
Stock
Exchange immediately prior to offer¬
Ripley & Co. Inc. and Lazard Freres & Co.,
New
)kr Berkshire Gas Co.
(4/8)
~
Metals
130,000 shares
and
Price—To
are
to
be
sold
for
account
of
60,000 shares for selling stockholders.
supplied by amendment.
Proceeds—For
be
general corporate purposes.
Office—Los Angeles, Calif.
Underwriters—Van Alstyne, Noel & Co., New
York, and
Crowell, Weedon & Co., Los Angeles, Calif.
American Federal Finance
Corp., Killeen, Texas
Sept. 5 filed 40,000 shares of class B common stock
(par
$5) and 400,000 shares of preferred stock (par
$5) to be
offered in units of 10
preferred shares and one common
share. Price—$55 per unit. Proceeds—To
purchase used
paper and to extend the
Company's operations into
the field of new car
financing. Underwriter—None. J. J.
Fain is President.
car
•
27
Laundry
filed
Machinery Co.
109,208 shares of
common
each
five
1957 on the basis of one new share
held (with an oversubscription
privilege); rights to expire on April 9, 1957. Price—To
be supplied by amendment.
Proceeds — Together with
each
funds
eight
from
rights to expire on April 3,
1957. Price
$25 per share. Proceeds
For working
capital and general corporate
purposes.
Underwriter—
shares
sale of
private
Goldman, Sachs & Co., New York.
•
American
Photocopy Equipment Co.
(3/26)
200,000 shares of common stock (par
$1),
of which 50,000 shares are to
be sold for account of com¬
pany and 150,000 shares for
selling stockholders. Price—
Feb.
27
filed
To be supplied
by amendment. Proceeds—For
working
capital and general corporate
purposes.
Underwriter—
Lehman Brothers, New York.
American Provident Investors
Corp.
Feb. 15 filed
50,000,000 shares of common stock (par one
cent). Price—$2 per share.
Proceeds
For working
capital and general corporate
—
purposes.
Tex:
Office—Dallas,
Underwriter—Peoples Securities Co., J. D. Grey,
New Orleans, John S.
Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22
directors, are
Chairman, Vice-Chairman and President,
respectively.
American Telephone &
Telegraph Co. (3/26)
March 5 filed
$250,000,000 of 28-year debentures due
of
April 1, 1985.
Proceeds—For advances to
subsidiary and
associated companies; for
purchase of stock offered for
subscription by such companies; for
extensions, additions
and improvements to
its own telephone plant; and for
general corporate purposes.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: The
First Boston
Corp. and Halsey, Stuart & Co. Inc.
(joint¬
ly); Morgan Stanley & Co. Bids—Scheduled
to be re¬
ceived up to 11:15
195
a.m.
(EST)
on
Broadway, New York, N. Y.
March 26 at Room
2315,
• Applied Physics Corp.
8
(letter of notification)
32,000 shares of com¬
mon stock
(par $1). Price—$9.25 per share. Proceeds—
March
To retire demand notes
payable and for
Office—362 W. Colorado
working capital.
Street, Pasadena, Calif. Under¬
writer— Schwabacher &
Co., San Francisco, Calif.
Automation Development Mutual
Fund, Inc. Aug. 24 filed 300,000 shares of common stock.
Price—At
market*
Proceeds—For investment.
Office—Washing¬
ton, D. C. Distributor—Automation
Development Secu¬
5%
first mortgage
the
basis
of
three' hew
subsidiaries
for
each
11
filed 60,000
be
shares of
supplied
warehouse
inventories
William
ten
shares
and
R.
for
Staats
,by
at
common
stock
(par $1).
Proceeds—To
amendment.
Anaheim, Calif., -to purchase
capital.
Underwriter—
Co., Los Angeles,
Calif.
Burma Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds
For equipment, exploration, drilling, working
capital and other general corporate purposes. Under¬
—
writer—To be
named
(4/2)
March 4 filed 300,000 shares of common stock
Proceeds—To repay bank loans.
Underwriter
(par $1).
—
To
be
determined
by competitive bidding. Probable bidders:
Merrill Lynch, Pierce, Fenner &
Beane; Lehman Bro¬
thers; Carl M. Loeb. Rhoades & Co. and Bear, Stearns &
Co. (jointly); Kidder, Peabody & Co.; White, Weld & Co.
—
Expected to be received up to 9 a.m. (PST) on
-
March
11
Power Co.
filed
$6,000,000 of first mortgage bonds due
1987. Proceeds—Together with
proceeds from proposed
sale of 300,000 shares of common
stock, for property
additions and improvements and to repay bank loans.
15
filed
April
5,
535,148 shares of capital stock
subscription by stockholders
on the basis of one new share
for
(par $9)
of
record
1.957,
for each
held; rights will expire on April 22. Price—To
supplied by amendment.
Proceeds—For capital ex¬
10 shares
be
penditures and to finance increased
inventories and ac¬
counts receivable.
Underwriter—Morgan Stanley & Co
New York.
-
»
.
•
share. Proceeds—For construction
per
J.'-". vW-
|
;
ture
and
sale
of
golf balls.
•
Columbia
161 East 37th St.,
Office
Underv*>terf-Landau Co., New York.
Gai
System, |nc, (4/3) /.V.
1,675,415 shares of common stock (no par)
be offered for subscription by common stockholders
record April 3, 1957, on the basis of one new share
March 8 filed
to
13
shares held
April 2.
on
(with
an oversubscription privi¬
April 22. Price—To be fixed
on
Proceeds—For financing construction
work
of subsidiaries.
Underwriter—To be determined by com¬
bidding. , Probable
bidders:
Merrill
Lynch,
Pierce, Fenner & Beane; White, Weld & Co. and R. W.
Pressprich & Co. (jointly); Morgan Stanley & Co. Bids
—Expected to be received up to 11 a.m. (EST) April 3.
petitive
Malting Co.
13
(letter of notification) 22,956 shares of common
stock (par $10) to be offered to stockholders on a basis
of one new share for each three shares held.
Price—$13
share.
per
tion
Proceeds—For working capital and for reduc¬
of short term loans.
141 W. Jackson
Office—Board of Trade Bldg.,
Blvd., Chicago 4, 111. Underwriter—None.
Commonwealth Investment Corp.
14 filed 499,400 shares of common
Jan.
stock (par $1).
Proceeds—For working capital to
expand
company's
business and operations.
Office—•
Sioux Falls, S. D. Underwriter—None.
Price—$4
share.
per
Consumers
13
filed
Rower
Co., Jackson,
549,324 shares of
Mich.
common
stock
(no par)
being offered for subscription by common stockholders
of record March 7, 1957 at the rate of one new share for
each 15 shares held; rights to expire on March 22, 1957.
Employees may enter subscriptions for unsubscribed
share. Price—$42.75 per share. Proceeds—For construc¬
tion program.
Underwriter — Kuhn, Loeb & Co. and
Ladenburg, Thalmann & Co. (jointly).
13
for
Price—$5
notes
debt
term
new
International Corp.,^Chicago, III.
558,100 shares of class A common stock
filed
per
payable,
in the total
equipment;
sum
of
for
and
writers—Allen Shaw &
Can
share.
Proceeds
—
including bank
To discharge
loans,
and
long
approximately $1,030,000;
working
capital.
Under¬
Co., New York; and Shaw & Co.,
Marino, Calif.
Proceeds
For diamond drilling on company's
lands,
prospecting expenses, working capital and other corpor¬
ceived
to 8
(jointly).
(PST)
Bids—Expected to be
re¬
April 9 at Room 900, 433
So. Spring St., Los Angeles
13, Calif.
up
a.m.
on
Cargo Cool Corp.
Jan. 31 (letter of notification)
100,000 shares of
open
and
common
Price—$3 per share. Proceeds—To
additional truck terminal branches;
acquire
for increased
inventories; and for working capital. Busi¬
Transport refrigeration equipment. Office—947
Communipaw Ave., Jersey City, N. J.
Underwriter—
ness
—
Fred Kaufman
•
Carolina
Co.,
120 Elm
St., Orange, N. J.
subscription
by
common
common
stock
($100 per share).
new
being offered
stockholders
Proceeds—To reduce bank
construction.
Underwriter
—
of
record
loans
and
None.
Centers Corp.,
Philadelphia, Pa. '
July 30 filed $8,000,000 of 5V-i% sinking fund debentures
due Aug. 1,
1971, and 1,600.000 share?, of common stock
(par one cent); subsequently amended to.$4,500JM)0 of
debentures.
Price
To be supplied by amendment.
—
purposes.
Office—83
Campfield
• Crusader Life Insurance Co..
March 7
stock
(letter of notification)
(par $50).
working capital.
Kan.
St., Irvington, N. J,
Inc.
1,82G shares of
Price—$100 per
share.
common
Proceeds—For
Address—P. O. Bex 993, Kansas City,
Underwriter—None.
Delaware
Income
15 filed 600,000
market.
11, 1957 on the basis of one share for each four
shares held; rights to expire on March 27.
Price—At par
for
ate
Jan.
Telephone & Telegraph Co.
Feb. 15 filed 58,310 shares of
—
Underwriter—Roth & Co., Maplewood, N. J.
stock (par 10 cents).
,
pro¬
Dean Witter & Co.
March
be offered
...»
stock
common
A* Cougar Mine Development Corp.
March 15 (letter of notification) 560,000 shares of com¬
mon stock
(par one cent). Price — 50 cents per share.
for
March
>"
*
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; White, Weld & Co.; Lehman Brothers and
Washington, D. C.
to
:
•••/-/•!
Co.
shares of
74,175
New York, N. Y.
current
(4/9)
cor-*
/
(par
(par $1).
•
"
50,000 shares of common
five cents). Price—$3 per share* Proceeds
—For promotion and advertising;
.wprking capital; aud
for development of new. products.
Business—Manufac¬
stock
^ Conticca
Electric
y-f".:.,
Power
Colt Golf; Inc.
;
Feb* 25 (letter of notification)
March
California
other
Underwriter—The First Boston Corp., New York.
April 2 at Room 900, 433 So. Spring St., Las Angeles 13,
W.lcox
(4/8)
Price—$22.50
gram.
Bids
Calif.
and
None.
(par $5)
being offered for subscription by common stockholder-s
of record March 4, 1957 on the basis of one new sharer
for each 3 Vz shares
held; rights to expire on April 2,1957.
Feb.
later.
California Electric Power Co.
• Babcock
Co.
filed
Columbia
working
&
27
Feb.
(4/1)
—
machinery and equipment,, and as
Underwriter: r-/Industry Developers,
•;
Colorado Central
Underwriter—None.
Price—To
of
lege); rights to expire
Proceeds—For advances to
and for general corporate
Brunswig Drug Co., Vernon, Calif.
March
;
Plywood,
»•
•
of
shares
Price—$17 per share.
construct
;1
equipment;
Underwriter
installation
for each
Supply Cd., Bluefield, W. Va.
149,925 shares of common stock (par $4)
be offered for subscription by common stockholders
on
and
bank loans. Under¬
Bluefield
held.
addi¬
an
Inc., Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share).. Proceeds—For
acquisition of
a
plant site, construction of a mill building, purchase
repay
March 12 filed
rities Co., Inc.,
&
Chinook
for property addi¬
writer—Dillon, Read & Co. Inc., New York.
to
agreed to purchase
expansion;
purposes.
1987,
15,
tions and improvements and to
—
-—
$750,000
bonds, Series H, due May
(par $20)
shares held;
,
March 22,
record
for
purposes.
|
stock
being offered for'subscription by common stockholders
of record March
20, 1957 at the rate of one new share
for
of
wholly-owned
American
Feb.
development;
Feb.
.
which
T
Incorporated, Philadelphia
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and
York.
.
of
'
Harriman
(letter of
company
Co.
-
Inc.
of
acquire
Century Controls Corp., Farmingdale, M. Y,
operating capital.
both
&
indefinite.
Proceeds—Together with proceeds from private sale
of
$4,000,000 25-year 4%% subordinated convertible
notes, for general corporate purposes. Underwriters—
March 8 (letter of notification) 20,000 shares of common
Co. v, 1:/5/
K?
stock (par $10) to be offered to common stockholders
notification) 30,000 shares ;of class
-around April 8, 1957 on the basis of one new share for
A common stock
(par $1). Price—$10 per share. Pro¬
five shares held (with an oversubscription privilege);
ceeds—For working capital. Office—433
Highland Ave.,
rights to expire on April 29, 1957. Proceeds—To retire
N. E., Atlanta, Ga.
Underwriter—Johnson, Lane, Space
an outstanding debt.* Office—20 Elm St., Pittsfield, Mass.
& Co., Inc.,
Savannah, Ga.; and J. H. Hilsman,■,& Co.,;/ Underwriter—None.
"
'
'
*
Inc., Atlanta, Ga.
;•.t;
/*. >•* ;/vv Vy;:; •/;.. • Black Hills Power &
Light Co. (3/28)
• American
Electronics, Inc. (3/22:'''J\ -V
March 7 filed 34,377 shares of common stock (par $1)
Feb. 28 filed 190,000 shares of common
stock, (par $1),
to be offered for subscription by common stockholders
American
March
Blair
—
York. Latter has
III.
(4/3)
March 13 filed 100,000 shares of common stock (par $10).
Price—To be related to current market price on the
New
to
(par $1).
porate
Bell
used
tional 300,000 common shares and reoffer them to per-sons
selected by it at $1.10 per share.
Offering—Date
of notification)
(letter
stock
ing.
Amalgamated
.
Dec.
mon
New
and
Beautilite Co.
•
filed
Underwriter
Underwriter—The First Bos¬
,
if Agricultural Equipment Corp.
March 1 (letter of notification)
500,000 shares of com¬
mon
stock (par 10 cents).
Price—50 cents per share.
be
develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.
bank loans
repay
will
T •.
to
held; rights to expire on April 3, 1957.
share.
per
new
$4,100,000
ISSUE
V
/
seven
being offered for subscription by common stockholders
record March 18, 1957 at the rate of one new share
11 shares
About
—
PREVIOUS
8 ITEMS REVISED
>
'•
i
ADDITIONS
shopping center sites and a Penn Fruit super¬
market adjacent to one of them; the balance will be used
(no par)
of
lor each
and
^Thursday, March"21, 1957
,
Cj,
:
.
;
ware
Fund, Inc.
shares of
Proceeds—For
common
investment.
stock. Price—At
Distributor—Dela¬
Distributors, Inc., 300 Broadway, Camden, N. J.
Development Corp. of America (3/25-29)
Jan. 29 filed 400,000 shares of common stock (par $1).
Price—$5.50 per share.
Proceeds—For working capital.
Name Changed—From Ulen Management Co. on Feb. 15.
Underwriter—Sutro
Bros.
& Co. and
Allen & Co.,
both
of New York.
•
Duval
Feb.
being
21
Sulphur & Potash Co.
filed
offered
.basis of three
300,000
for
new
shares
of capital
subscription
shares
by
for each
stock
(no par)
of the
stockholders
10
shares held
as
of
Volume
Number 5622
185
...
1957; rights to expire on April 8, 1957. Price
share. Proceeds—For general corporate pur¬
Underwriter—None.
March 14,
•
Utilities Associates
Eastern
March 21-
•
filed
18
Southern Ry.———_
89,322 shares of common stock
(Bids noon
Feb. 26 filed
ferred
American
Metro,
Bros.
Co.
&
Bache
&
Co.;
♦
•
Ottering
Co.
Stouffer
Inc.
Corp
150,000 shares of capital
Co., Inc.)
March
$1.50).
—To
Rio
&
Denver
St., Wilmington 99, Del. Underwriter—
Co., Metairie, La. and Salt
of
filed
8
shares
of
Oil
(par
D
Circuit
I-T-E
of
(Offering
>
Underwriter—Leh¬
Inc.
El Paso Electric
$3,000,000
(Wednesday)
,t
Bond*
Co
(Bids to be invited)
about $6,500,000
(Monday)
May 20
Inc.)
Public
Service
Co.
(Bids
Colorado..
of
Bond*
...
EDT) $30,000,000
noon
.May 21
(Tuesday)
Inc. and Lazard Freres & Co.)
(Offering
td
.Common
1,675,415 shares
EST)
$15,000,000
International Business Machines Corp
shares
Inc
Bond*
(Bids to be invited)
Common
Common
New
-
j
York
Common
stockholders—to be underwritten
Stanley & Co.) about $200,000,000
by
(Bids
-
invited)
be
to
Morgan
'
Bonds
Telephone Co
$70,000,000
•
«
t
•
<
Brothers) $10,000,000
Common
&
underwriting)
—without
547,678
Electric Co.
&
(Thursday)
23
to
(Bids
be
:
about $8,000,000
Reading Co.
shares
-
Equip. Trust Ctfs,
invited)
to be
Bonds
Co
Light
Gas
(Bids
May
Common
of Standard Gas
stockholders
to
(Offering
Washington
$3,900,000
Inc.)
Otis,
(Wednesday)
May 22
Debentures
...
(Gearhart
invited)
$2,475,000
i.l
Common
Southeastern Public Service Co
(Offering
& Co.)
stockholders—underwritten by Bioren
to
Common
security
to
(Offering
—underwritten
by
(Bids
(Thursday)
•
Bids
(Monday)
Berkshire
(Offering
,
Kaiser
(The
Katz
Co., Inc.
Lake
notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds — For
(letter of
38'
shares
Common
Randall
Hcrner
June
(Bids
Common
Inc.)
126,000 shares
$6,000,000
..Bond*
,
.
(
First Eoston Corp.
Co.)
Natural
(Bids
11:30
EDT)
I
*15,500.000
(Tuesday)
Gas
a.m.
Debenture*
Co
EDT)
$25,000,000
June
(Tuesday)
18
Southern Bell Telephone & Telegraph
$35,000,000
October
(Bids
___Bonds and Notes
&
a.m.
1
and
to
be
Co
(Tuesday)
invited)
—
to
be
invited)
Bonds
$15,000,000
Common
Utah Power & Light Co
(Bids
Debs,
$70,000,000
Utah Power & Light Co....
High Authority of the European Coal and
The
(Thursday)
Bond*
11
(Bids to be Invited)
(Tuesday)
California Electric Power Co
Freres
6
June 11
Consolidated
April 9
Lazard
Common
1,000,000 shares
$300,000
Co
&c Mason,
Steel Community
(Kuhh, Loeb & Co.,
$10,000,000
Georgia Power Co
M.
Common
Inc.)
Co.,
&
Overnite Transportation
(Scott,
Carl
50.000 shares
Inc.)
Lauzon Mines, Ltd
(Steven
Bond*
(Wis.)
Virginia Electric & Power Co
....Common
Co.
(Tuesday)
to be invited)
(Bids
20,000 shares
underwriting)
Dean
8c
4
(Bids to be invited)
Drug Co._
Becker
Debentures
about $500,000
Co.)
-—Common
(Bids 8 a.m. PST)
Inc.
by Morgan
Witter & Co.; and
Loeb, Rhoades * Co.) 750,000 shares
G.
Lemon &
June
Corp
Corp.;
Boston
(A-
$250,000 of 6% first mort¬
535,148
Co.)
(Monday)
Northern States Power Co.
,
.Common
Gas Co
to stockholders—no
Industries
First
&
(Johnston,
underwritten
be
stockholders—to
to
3
4
$15,000,000
EST)
a.m.
Employees Corp
$1,200,000
invited)
be
to
April 8
Babcock & Wilcox Co
11:30
Equip. Trust Ctfs.
—
____
Debenture*
Co
June
Government
Virginian Ry.
Gas
holders of ACF-Wrigley Stores, Inc.Allen & Co.) 2,069,150 shares
April 4
(Tuesday)
May 28
National Fuel
92,500 share*
Washington, D. C.
invited)
be
May 15
,•
.
Pittsburgh Rys. Co.
D. C. Underwriter
page
to
Florida Power & Light Co
Co..
Stanley
on
(Tuesday)
Bonds
•Wrigley Properties, Inc
Continued
Co.
8c
i
;(Lehman
(Offering
-
(Bids
Common
BJyth
National Lithium Corp
bonds due 1962 to 1967, inclusive. Price—100% of
principal amount. Proceeds—For machinery and work¬
ing capital. Office—Hoag and Newton Sts., Akron, N. Y.
Business—Manufacturing chewing gum and self-service
machines.
Underwriter—None.
Btock.
Co.
Inc., Washington, D. C.
Juices,
Co
Governor
«...
gage
Dec. 3
to
Flintkote
Feb. 1
Fruit
t
1,537,500 B shares
and
(Glore, Forgan 8c Co.) 369.600 shares
Underwriter—N one.
(letter of notification)
Common
Corp
Equip. Trust Utfs.
Co
sttockholders—Bids 11 a.m.
Fisher
purchase, lease or otherwise, and to hold,
Ford Gum & Machine
(May 13)
426,988 A shares
«
(Wednesday)
(Offering
"own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.
Dec. 18
Bond*
EDT) $14,500,000
Chicago, Rock Island & Pacific Ry.
$12,000,000
EST)
a.m.
100.000
Pompano Beach, Fla.
certificates of beneficial interest in
Price—$1,000 per certificate.
Proceeds—To
Office—20 "O" St., S. E., Washington,
(Thursdays
a.m.
& Film
EDT)
p.m.
'
Gas System,
850
—Rudd, Brod & Co.,
11
(Harriman Ripley & Co.
loans and for ad¬
(letter of notification) 100,000 shares of 8% con¬
vertible preferred stock. Price—At par ($3 per share).
Proceeds — To open and equip two new supermarkets.
3:45
r
shares
Columbia
improvements to property.
Food Town,
*
746,270 shares
Inc.)
Electric
Massachusetts
Bell &• Howell
.
by
11
May 14
Common
Reynolds & Co.
and
shares of common stock
Florida Trust,
acquire
Common
1
241,020 shares
Co.)
&
April 3
Beane, both of New York.
Trust.
(Bids
Common
(Eids
Underwriters—
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen-
the
Ctfs.
$6,000,000
(Tuesday)
Monday
Debentures
stockholders—underwritten by Dillon, Read &
to
Western
Employees may subscribe for not more than 3,000
of the unsubscribed shares.
Price — $16.50 per share.
filed
'
common
shares
Co.
General Aniline
Co..
178.646
1957.
4
7
Power
Common
Co«.
300,000 shares
PSTk
Vitro Corp. of America
♦
Offering to stockholders—underwritten by
'being offered for subscription by common stockholders
of record March 12, 1957 at the rate of one new share
for each three shares held; rights to expire on April 1,
•March
be
(Bids
States
Co.
of
Telephone Corp.
Feb. 21 filed 128,918 shares of common stock (par $10)
&
Alabama
Foil Co
.Class A common
(Offering to stockholders—underwritten by Dillon, Read &
Florida
ner
Invited)
to
May 9
Preferred
I%c.) $800,000
y,,.;(Co.; Inc. and Reynolds & Co.,'Inc.h914,078 shares
United
(par 10
cents).
Price—$5 per share.
Proceeds—For construc¬
tion of a 50-unit hotel-motel and various other related
buildings and improvements; furniture and equipment;
and working capital and other corporate purposes. Of¬
fice—Tom's Harbor, Monroe County, Fla.
Underwriter
—Keystone Securities Co., Inc., Philadelphia, Pa.
and
>
(Tuesday)
Breaker
(Reynolds
Florida-Southern Land Co.
ditions
Co.,
Metals Co
Reynolds
New York.
Proceeds—To retire $1,500,000 of bank
'
(Offering to stockholders—Stone & Webster Securities Corp.,
may be dealer-manager) 119,522 shares
60,000 shares
& Co.)
6c
...Class A
Co.) .125,000
&
El Paso Electric Co..
Inc.
Revlon,
(4/3)
11 filed 600,000
-
(Wednesday)
May
Bond*
$6,000,000
$10,000,000
Brothers, New York.
March
Debenture*
$30,000,000
(Smith, Barney & Co. and C. C. Collings & Co., Inc.)
sinking fund debentures
April 1, 1977. Price—To be supplied by amendment.
man
$2,700,000
(Monday)
Podesta
(Bids
Common
Staats
R.
(Bids 9 8.m.
bank loans and for expansion program. Business—
Manufactures automatic control equipment. Underwriter
expansion program.
Equip. Trust Ctfau
CST)
invited)
May 1
Common
EST)
Electric Power
California
pay
Proceeds—For
'
■
•
Chicago, Milwaukee, St. Paul & Pacific RR.
Equip. Trust
(Monday)
April 2
.
184,800 shares for selling stockholders.
Price—To be supplied by amendment.'Proceeds—To re¬
due
be
.^Common
shares
300,000
Inc.)
a.m.
(Amos Treat
the company and
$10,000,000
__Common
$225,000
Inc.)
Herold Radio & Electronics Corp
it Fisher Governor Co., Marsha I (town, Iowa (4/3)
March 14 filed 369,600 shares of common stock (par $1),
filed
11:30
William
i
capital improvements and working capital.
Underwriter—Hallowell, Sulzberger & Co., Philadelphia,
Pa. Offering—Expected today (March 21).
8
...
Neuhaus & Co.)
(Tuesday)
noon
to
(Cruttenden,
r
(Thursday)
April 1
Brunswig Drug Co
including
Flintkote Co.
Inc..
shares
Associated Truck Lines, Inc
Cfts.
Trust
$4,800,000
Co.,
&
Read 8c Co.
(Bids
ing fund debentures due 1977. Price—To be supplied by
amendment. Proceeds—For general corporate purposes,
March
(Monday)
and Underwood,
April 29
New Orleans Public Service lnc
Hatboro, Pa.
Feb. 28 filed $3,200,000 of convertible subordinated sink¬
—Glore, Forgan & Co.,
shares
Northwestern Bell Telephone Co
RR.
_____
Blauner
D.
Dillon.
♦
Under¬
184,800 shares are to be sold for the account
(Bids
:
(Bids
Falcon Seaboard Drilling Co
Fischer & Porter Co.,
of which
MST)
noon
March 28
Price—To be supplied by amendment. Proceeds
outstanding indebtedness, to acquire stock
& D Drilling & Construction Co., S.A., and for
repay
general corporate purposes. Office—Tulsa, Okla.
writer—Dillon, Read & Co. Inc., New York.
Western
Grande
Corp..
(Milton
stock
190,000
'
....Common
...
Co.)
Minneapolis & St. Louis Ry
y
■
(Wednesday)
Equip.
(3/28)
common
&
April 23
shares
,
(Wednesday)
200,000
245,270 shares
27
(Bids
Nvvatex
300,000
and Fulton Reid 6c
175,000 to 200,000 shares
Steel Co....
Y
Common
;
'
Common
(Shearson, Hammill & Co.
Common
*
stock
common
(Tuesday)
April 22
&
;
,
Common
unannounced
Houston Oil Field Material Co.,
v
shares
612,260
of
•
,
March
Utah.
Seaboard Drilling Co.
Read
Dillon,
shares
350,000
debentures
of
Peabody
Bonds
*
Forgan & Co.
(Glore,
,
Co.)
Pressed
(Kidder.
Common
by
$3,585,000
Debentures &
April 17
Standard
$250,000,000
...
Ackerson Hackett Investment
Falcon
34,377
Inc.)
invited)
(Paine, Webber, Jackson 8c Curtis)
200.000 shares
EST)
be
Roxbury Carpet Co
-
& Telegraph Co
a.m.
to
April 16
Common
Houston Lighting & Power Co
(Offering to stockholders—no underwriting)
(par $1). Price — $2 per share. Proceeds — For
manufacture and sale of molded plastic items.
Office—
•
Brothers)
stockholders—underwritten
to
'•
("Tuesday)
26
11:15
(Bids
stock
10th
;
,
Hills Power & Light Co
Black
Underwriter—None.
West
Lehman
&
-
$125,000,00-3
Equip. Trust Ctfs.-
Artists Corp
Eberstaat
—amount
'And 40,000 Common shares'
American Telephone
A- Equity Fund, Inc., Seattle, Wash.
March 18 filed 300,000 shares of common stock. Price—
At market.
Proceeds—For investment. /•
100
(F.
$1,050,000
American Photocopy Equipment Co
Feb. 19, 1957).
Proceeds — To go to Albert J. Mc¬
Laughlin. Otfice—588 Commonwealth Avenue, Boston,
Lake City,
(Bids
United
^nd Grimm.& Co.) 4,000 preferred
shares
'
"...
..Debentures 1
Baltimore & Ohio RR
Equip. Trust Ctfs.
CST)
(Monday)
(The First Boston Corp. and Morgan Stanley & Co.)
$2,200,000
Debentures
noon
Bonds
-
EST) *6,000,000
a.m.
Aluminum Co. of Canada, Ltd
Common
Co.)
11
April 15
'*■
Winter Park Telephone Co.__Preferred & Common
(Security Associates, Inc.; First-Florida Investors, Inc.;
of
(letter of notification)
&
^
March
Feb. 8
(Bids
Common
G. H. Walker & Co.) 220,000 shares
Mississippi Power Co
&
Ctfs.'
$6,600,000
(Thursday)
11
Boston Corp. and
230,000 shares
Inc.
(Bids
1.000 shares of common
Price—At market (estimated at $18 per share, as
Esk Manufacturing,
Goddard
H.
J.
Equip. Trust
invited)
be
Electric Light & Power Co
(The First
(Auchincloss, Parker & Reapath), $600,000
ir Epsco, Inc.
(letter of notification)
Mass.
Allen
and
Mono RR.
March 8
stock.
Iowa
«fc
...Common
by
(Monday)
Development Corp. of America
Price—$100 per share. Proceeds — To reduce bank
construction. Underwriter — White,
1
Weedon
March 25
(no par), being offered for
r
(Wednesday)
Ry
to
April
Common;
stockholders—underwritten
To
(Surro
Co., New York.
(Friday)
and Crowell,
190,000 shares
Co.
Co., Inc. and Thornton, Mofcr <Sr Parish)
loans and for new
Weld &
10
Western
(Bids
Loval American Life Insurance Co
(Offering
Norfolk &
$5,540,000
Inc
Noel &
Alstyne,
Co.)
subscription by common and common B stockholders of
record March 18, 1957, at a rate of one new preferred
share for each 56 shares held; rights to expire on April
2."
Electronics,
(Van
300,000 shares of $5 convertible second pre¬
stock, series of 1957
April
Equip. Trust Ctfs.
EST)
March 22
Paso Natural Gas Co.
El
(Thursday)
.
(par $10)
being offered for subscription by common stockholders
of record March 20, 1957 on the basis of one new share
for each 12 shares held (with an oversubscription privi¬
lege); rights to expire on April 4, 1957. Stone & Web¬
ster Securities Corp., Boston, Mass., will act as subscrip¬
tion agent. Price—$30.50 per share.
Proceeds—To pur¬
chase common and capital stocks of Blackstone Valley
Gas & Electric Co., Brockton Edison Co. and Fall River
Electric Light Co.; Underwriter—Kidder, Peabody & Co,
Feb.
CALENDAR
ISSUE
NEW
—S25 per
poses.
37
(1369)
Chronicle
The Commercial and Financial
400.000
shares
,
BS
The Commercial and Financial Chronicle
(1370)
Continued from page
ventory, working capital,
Co., Houston, Tex.
37
Office — 1115 South Washington St.,
Underwriter—Sterling Securities Co., Los
•
tion
(5/13)
A stock (no par)
New York
14 filed 426,988 shares of common
Merrill
Union
Forgan
to
up
654,
of
Merrill
None.
Lynch, Pierce, Fenner & Beane, New York, will act as
clearing agent.
6hares
of
tional
Gold Mountain Lodge, Inc., Durango, Colo.
Aug. 23 filed 5,000 shares of class A voting common
stock
(par $1), 295,000 shares of class B non-voting
common stock (par $1X, and $700,000 of 4%
debentures
stock
of
common
Of the latter issue,
(par 25 cents).
12,500 shares
are to be sold to underwriter at par and the
remaining
12,500 shares issued to Alton Blauner as a finder's fee
at par. Price—Of preferred, $5 per share. Proceeds—For
working capital.
Office—Mount Vernon, N. Y. Under¬
writer—Amos Treat
&Co. Inc., New York.
Offering—
Expected first or second week of April.
it High Authority
of the
European
Coal
and
Steel
Community (4/9)
March 18 filed $25,000,000
of secured bonds (seventh
due 1975 and $10,000,000 of serial secured notes
(eighth series) due 1960-1962. Price—To be supplied by
Proceeds
—
To make loans to firms in the
Community for expansion of coal mines, coking plants,
plants and iron ore mines. Underwriters—Kuhn,
Loeb & Co., The First Boston Corp. and Lazard Freres
power
Kilo
Electric
construction
common
stock
,
(par $20), of
being offered for subscription
by
American
Industrial
Price
Israel
pounds
of
and
will
be
I-T-E
March
Circuit Breaker Co.
11
filed
debentures due
amendment.
loans.
Proceeds
—
(F. L.)
bank loans and for expansion and
Underwriter—None.
repay
program.
1972.
Price
Jan. 25 filed 406,638 shares
ferred stock, series A (par
-
of 50-cent convertible
pre¬
$5) and 2,476,116 shares of
common stock (par 60 cents), of which all of
the pre¬
ferred and 763,011.3 shares of common stock
are
to
be offered in exchange for Moiint Vernon Co.
preferred
and
stock'
the basis of one
Holly series A
406,638 shares of Mount Vernon
preferred stock and 2V2 shares of Holly common stock
for each of the 305,204.52 shares of Mount Vernon
com¬
common
share
mon
for
each
stock.
Of
of
on
the
short-term
"
& Co. and
Gearh»w
of
the
remainder,
210,000
Holly
common
shares are to be offered to certain holders of
35,000
shares of Van Dorn Iron Works Co. common stock
on a
six-for-one basis; 38,333 Holly common
shares will be
offered to certain finders, 60,000 shares to
certain ven¬
dors of property;
1,016,595 shares will be
reserved
agftinst conversion of preferred stock; and the remain¬
ing 388,176 are to be reserved for possible issuance at a
future date in exchange for 64,696
shares of Van Dorn
Iron Works
>
common
stock.
*
Underwriter—None.
Holy Land Import Corp., Houston, Texas
Feb. 27 (letter of notification) 100,000 shares of
common
stock. Price—At par ($3 per share). Proceeds—For in¬
—
■
to
be
263,848 shares of
offered for subscription
and holders
rants
on
record
the
of
certain
basis of
March 19,
To
months
or
from
stock
common
(par $1)
stockholders
outstanding stock purchase
one
share for
each
share
war¬
held
of
for each share
subject to purchase
The subscription offer will expire
under such warrants,
four
common
by
effective
date
of
offering.
Price
—
stockholders, $3.25
share.
any
Proceeds—To
new
stores
that
per share; and to public, $4 per
equip and stock a warehouse and
may be acquired. Underwriter—
Peters, Writer & Christensen, Inc., Denver, Colo.
+ King's Crown Development Co.
March
mon
6
(letter of notification)
stock.. Price—At par ($]
Mason Mortgage & Investment Corp.
Boise, Idaho
of
$11
McRae
one
unit). Price—$3
per
share
and
unit, consisting
per
warrant.
one
Proceeds
—
For
mining expenses.
Office—c/o Robert J. McRae, 1704
Gourley St., Boise, Ida. Underwriter—Von Gemmingen
& Co., Inc., 320 North Fourth St., St. Louis, Mo.
Mercantile Acceptance Corp. of Calif.
Feb.
27
(letter of notification)
$11,400 of 12-year 5M>%
subordinate capital debentures. Price—100% of principal
amount.
Proceeds — For working capital.
Office — 333
Montgomery
St., San Francisco, Calif.
UnderwriterSecurities Corp., San Francisco, Calif.
Guardian
-
subordinated
debentures due March 31,
1967. Price—100% of princi¬
pal amount. Proceeds—For working capital. Businessr—
Financing of automobiles and durable consumer goods,
Underwriter
etc.
Washington, D. C.
Auchincloss,
—
Parker
&
Redpath,
¬
Michigan Wisconsin Pipe Line Co.
July 2, 1956 filed $25,000,000 of first mortgage pipe line
bonds due 1976. Proceeds—To pay off short term bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.;* The First Boston Corps:;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, aU for 4%s, but were turned down. Reoffering is
•
expected sometime during the first six months of
1957.
Minneapolis Area Development Corp. - '
'
Feb. 19 filed $1,000,000 of 4% sinking fund income de¬
bentures due March 1, 1972, and 25,000 shares of common
stock (par $1) to be offered in units of
$40 of deben¬
tures and
one
share of stock.
Price—$50
unit.
per
Pro¬
ceeds—For
acquisition of lands and for development of
sites for industrial purposes; for payment
of bank loans; and for
working capital and other cor¬
porate purpose. Office—Minneapolis, Minn. Underwriter
the
lands
as
—None.
King Soopers, Inc., Denver, Colo.
filed
cent at
one
r
15-year
At face amount (in de¬
.
25
Proceeds—For in¬
Offering to be made
of this company and
rants (each two warrants to entitle holder thereof to
purchase one share of Idaho Rare Minerals Corp... 6%
cumulative convertible
sinking fund preferred stock,
par $10, and one share of Idaho Rare common stock, par
4
—
•
employees
"
Price—At
(letter of notification) 100,000 shares of common
(par one cent) and'100,000 stock purchase war¬
stock
bank
ir Katz Drug Co., Kansas City* Mo. (4/8-12)
March 19 filed 50,000 shares of common stock
(par $1).
Price
To be supplied by amendment.
Proceeds
For
working capital. Underwriter—A. G. Becker & Co.
Inc.,
Chicago, 111.
Feb.
and
None.
Metro, Inc., Baltimore, Md. (3/25)
4 filed $800,000 of 6% convertible
$1,000 each). Proceeds —For additions
and improvements.
Office—139 W. Second Street, Ju¬
neau, Alaska. Underwriter—Grande & Co., Inc., Seattle,
Wash.
officers
—
McRae Tungsten Corp.,
Offering—Date indefinite.
—
Underwriter
March
Douglas Telephone Co.
(letter of notification) $295,000 of 6%
nominations
$1,000,000 of 8% note certificates.
Nov. 30
into
;
Holly Corp., New York
through
Bank,
Juneau &
24
r
(in denominations of $250 each).
par
vestment.
Oct. 4 filed $3,000,000 of 6% convertible
debentures due
Nov. 1, 1966. Price—100% of
principal amount. Proceeds
•—To pay short-term loans and for
working capital. Un¬
debentures due
subscription by common stockholders
18, 1957 at the rate of one new share for
Mortgage Fund, Inc., Washington, D. C.
Feb. 8 filed
Co.
derwriters—McLaughlin, Cryan
for
.
working
reduce
/
$1)
(par
(with an oversubscription privi¬
Price—To be supplied by amendment..-Proceeds
capital and surplus. Underwriters—J. H.
Mason
(4/2)
To
(3/22-25)
stock
Goddard & Co., Inc., Boston, Mass., and
Thornton, Mohr
& Farish, Montgomery, Ala.
-
Underwriters—Smith, Barney & Co., New York,
C. Collings & Co.,
Inc., Philadelphia, Pa.
C.
and
offered
lege).
Boston
$10,000,000 of convertible subordinated
April 1, 1982. Price—To be supplied by
Jan.
Proceeds—To
as
be
(Inc.
common
—To increase
capital to
extend the medium and
long-term credits to enterprises
m Israel.
Office—Tel Aviv, Israel. Underwriter—Israel
Securities Corp., New York.
and the
construction
First
Development
used
the
remaining 6,060 shares to be offered to employees,
balance, if any, to the general public. Price—
Ta stockholders, $24 per share; to employees,
$28 per
share; and to general public, at prevailing market price.
to
of its affiliate.
Proceeds—To be converted
par.
Loyal American Life Insur. Co.
of record March
$2,500,000 of perpetual 6% debenture stock.
110%
—
—
each three shares held
-—
Feb. 13 filed
Corp.,- New
Sept. 28 filed 230,000 shares of
10
in
Ltd.
Otis, Inc., both of New York.
new
•
(par
exchange for all the outstand-
stockholders of record March 5, 1957 at the
shares for each seven shares
held; rights
to expire on April 6, 1957.
Any unsubscribed shares plus
common
rate of two
stock
Underwriters—The
program.
—
Corp., New York; and G. H. Walker & Co., St. Louis, Mo.
Israel
Boston
bank debt of $20,000,000 in-Underwriter
The
York.
:;;uy*v:
repay
Logren Aircraft Co., Inc., Torrance, Calif.
5 (letter of notification)
194,180 shares of com¬
stock (par $1). Price—$1.37(2 per share.
Proceeds
For working capital.
Office — 2475A So. Crensnaw
Blvd., Torrance. Calif. Underwriter—Daniel Reeves &.
Co., Beverly Hills, Calif.
Duplex Corp., San Francisco, Calif.
program.
to
for. construction
mon
—
-
'
v
exchange for
Equity and Finan¬
185,000 shares each of Interna¬
the
\
Marrh
-
stock, and the remaining 135,000
Corp. on a basis of 1%
stock in
common
Jacobs
Light Co., Ltd., Hilo, Hawaii
receive
.
'''V,
154,834 shares of 4.84% cumulative con¬
preferred stock being offered for subscription
other funds
First
* Iowa Electric Light >& Power Co. (4/11)
March 19 filed 220,000 shares of common stock
(par $5).
Price—To be supplied by amendment.
Proceeds
For
& Co., all of New York.
Feb. 7 filed 51,380 shares of
which 45,320 shares are
with
curred
ment.
series)
amendment.
common
General
stock
.
r*
by common stockholders of record March 5, 1957 on
(he basis of one share of preferred stock for each 40:
common/shares held; rights to. expire on March 25/
Price-—At par
($1011 per share).
Proceeds—Together
Des Moines, Iowa
common
common
filed
vertible
filed 500,000 shares of common stock
(par one
Price—$1 per share.
Proceeds—To equip and
establish five super launderettes and for
working cap¬
ital.
Underwriters—Names to be supplied by amend¬
(4/1-11)
shares
Feb.- 13
4
common
of
.
Office
Washington, D. C.
14
Lone Star Gas Co.
cent).
Feb. 27 filed 160,000 shares of 6% cumulative convertible
25,000
to
are
:
Productions, Inc.
(letter of notification) 30,000 shares
(par $1). Price—$2 per share. Proceeds—For
spe¬
building, equipment and for working capital. Office
—Columbia, S, C.
Underwriter—Alester- G. Furmaa
Co., Inc., Greenville, S. C.
■■■,
../* •
Dec. 21
shares of class B stock and one $7,000
debenture. Price—$10,000 per unit. Proceeds—For pur¬
chase of property, remodeling of present main building,
for new construction and working capital.
Business—
Operates year-round resort hotel. Underwriter—None.
and
Financial
International
63, Arnett, Okla.
cial
offered
Co., Denver, Colo.
International
2,950
(par $5)
capital.
common
expenses.
stock
(par $1),
exchange offer. Underwriter—None.
due Dec. 31, 1975, to be offered for sale in the States
of Texas and Colorado in units of 50 shares of class A
stock
be
Jan.
(4/22-26)
stock
lng shares of common stock of Investors Financial Corp.
and Group Equities, Inc. International has been informed
that 142,000 shares of Equity common owned
by Fre¬
mont Corp. will be tendered in acceptance of the
Equity
N. Y.
preferred
construction
.
—
Address—P. O. Box
Underwriter—None.
share of Financial common stock.
one
cial
Corp.
working
by
shares
R. I.
'
and
Equity Corp.
operation; to increase the number of stores; and
Office—41 Stukely St., Providence,
Underwriter—Bruns, Nordeman & Co., New York,
Electronics
to
are
Price
mining
cents), of which 185,000 shares are to be offeiod by The
Equity Corp. on a share-for-share basis in exchange for
Inc.
for working capital.
&
for
common
International Capital Corp.,
29 filed 370,000 shares of
(letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
share. Proceeds — For additional discount department
Radio
and
stock.
Leslie
Nov.
Jan. 21
Herold
loans
Exploration Co., Inc.
(letter of notification) 23.000 shares of common
At par ($10 per share).
ProceedsFor
Feb. 28
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—
For working capital.
Underwriter—-Johnston, Lemon &
Co., Washington, D. C.
Price—$32 per share. Proceeds—
loans and for further investments in
stock,
bank
International Bank of
equivalent thereof.]
store
Laure
held
(par 10 cents). Price—$1 per share. Proceeds—
To buy leases; for exploration and
drilling. Office—
413 First National Bank
Bldg., Denver, Colo. Under¬
writer—Skyline Securities, Inc., Denver, Colo. ;
:
held; rights to expire on March 29, 1957.
Shops of America,
shares
Dec. 18 (letter of notification) 290,000 shares of
[Each holder of less than 15 shares will, in lieu of the
warrant otherwise deliverable to him, receive the cash
Gob
10
stock
ing offered for subscription by common stockholders of
record March 8, 1957, at the rate of one new share for
—
reduce
200,000 shares
Hub Oil
of common stock (par $5) be¬
Underwriter
each
Houston, Tex.
Underwriters—Shearson, Hammill & Co., New York; and
Underwood, Neuhaus & Co., Houston, Texas.
~'
Offering to be made through selected dealers.
General Public Utilities Corp. -•
'
reppv bank
domestic subsidiaries.
York.
Underwriter—None.
which
ments
purchase 160,000 shares of participating preference
stock, to be offered in units of $500 of debentures and 40
warrants.
Price—$500 per unit. Proceeds—For expan¬
sion and working captal.
Underwriter — None named.
to
To
for
Underwriter—Steven Randall & Co., Inc., New
purposes.
publicly and
105,000 shares pursuant to company's restricted stock
option plan for certain offices and key employees. Price
—To be supplied by amendment.. Proceeds — To retire
$1,400,000 short-term bank loans, for capital require¬
17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrant*
each 15 shares
share
new
March 15 filed 305,000 shares of
Aug
Feb. 6 filed 646,850 shares
one
•fc Houston Oil Field Material Co., Inc.
Inc., Washington, D„ C.
General Credit,
of
cents
per share.
Proceeds—For drilling ex- '
equipment, working capital and other corporate
penses,
(no par),
an
program.
Securities
3:45 (EDT) on May 13 at Room
101 Indiana Ave., N. W., Washington 25, D. C.
received
stock
612,260 shares are to be offered for subscrip¬
stockholders of record March 25, 1957
Proceeds—To
Co.,
(jointly);
Co.
&
Fenner & Beane and Eastman
& Co. (jointly). Bids—To be
Pierce,
Lynch,
Dillon.
Glore,
Price—40
(3/26)
common
oversubscription privilege); rights to expire on
April 15. The remaining 53,500 shares are to be offered
for subscription by employees.
Price — $43 per share.
Probable bidders: Blyth & Co., Inc.; Kuhn, Loeb &
and
665,760 shares of
Thursday, March 21, 1957
.
★ Lake Lauzon Mines Ltd., Toronto,. Can.
(4/8-12)
March 18 filed 750,000 shares of common stock
(par $1).
common
rate
(with
1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney Geenral of the United States.
Underwriter—To be determined by competitive bidding
and
Brothers
by
the
at
Lighting & Power Co.
filed
25
which
of
General Aniline & Film Corp.,
Lehman
Houston
Feb.
Angeles, Calif.
Jan.
Underwriter—Benjamin
&
working capital.
Marion, Ind.
etc.
.
.
fees, advertising, promotion, construction of a motel
working capital. - Office—705 Judge Building,. Salt
Lake City, Utah.
Underwriter—None.
-
and
•
* Mississippi
March
15
Power
Co.
(4/11)
filed
$6,000,000 of first mortgage bonds due
Proceeds—For construction program. Unr
derwriter—Tc be determined by
competitive bidding/
April 1, 1987.
Probable
bidders:
Halsey, Stuart ,& Co. Inc.;, Merrill
Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.;
Blair & Co. Incorporated; Eastman
Dillon, Union Secu¬
rities
&
Co.
and
Equitable
Bids—To be received up to
office of Southern
Securities
11
a.m.
Corp.
(EST)
on
(jointly).
April 11, at
Services, Inc., Room 1600, 250 Park
—
For
Philip B. Harris (Vice-President of Northwest¬
National Bank of Minneapolis) is President.
Avenue,
265,130 shares of com¬
share).. Proceeds
per
ern
New York
17,
N. Y.
Mississippi Valley Portland Cement Co.
Dec. 26 filed
1,600,000 shares of capital stock (no par), of
subject to an offer of rescission.
which 708,511 shares are
Price-—$3 p&r,.share.- Proceeds-
-For completion of
provide for general creditors and for working
plant,
capital.
V©lumg'/1&5
Number 5622
.
.
.
The Commercial and Financial Chronicle
Off ice—Jackson,
vMiss. / Underwriter—None, offering
through company's own agents.
be made
it Overnite Transportation Co., Richmond, Va.
to
"-;.\(4'/<8?lj2).
March
Paradox
Life
shares of common
Proceeds^—For re¬
paid out in con¬
nection with a recapitalization. Office-^4703 Ross Ave¬
nue, Dallas 4, Texas.- Underwriter—None.
Underwriter
/
.
Term.,
N.- Y.
postponed.
^
~
*
Off
-
.
-
ri
g
5
-
—-
Plymouth Fund, Inc.,, Miami, Fla.
Feb. 5, filed .500,000 shares of capital
Price—At
writer
•
Watponal
Feb
Rubber
25
.
debentures.
A
units of $500
stock
(par
investment.
Price
$1).
Under¬
Fla.
s^pckholderSiOf record March. 7, 195on-the..basis
.?fOne,newt share for each 20 shares held, (with,an over
—
At
face
amount
(in
and multiples
thereof).
Proceeds — For
general corporate purposes.
Office-1012 14th Street,
j;
Washington, D. C. Underwriter—None,
'
■
JV
*
.«
0f which 200,000 shares are to be offered to
,
,2OOO0 share3 issued to underwriter.
v Pmeee*—To retire
tures as w6l,
,
a
as
r
.
public and
Price-$5 per share.
$125,000 of outstanding 15% deben-
$173,180 debt to Trans-Union Produc-
Brunswick/(Province
of)
March 15
Dec. 14 filed $12^000,000 of 25-year sinking fund deben-
,/
tures due
Jan/1, 1982.
Proceeds—To
ment.
advanced
to; The
New
mission.
Co.
/Gas
England Electric System
.;,
'
819,000 shares of common stock (par $1)
in
Electric
&
/■ Jackson
Boston,
in
exchange for
Co.
the
en
capital
basis
of
stock "of Lynn
two
NEES
shares
& .Curtis
arid
F.
S.
Moseley
&c
Co.,
both
Feb. 15 filed
Proceeds—For
Public
Service,
construction
of
April.
—To
-
.*
debentures
(par $1)
acquire
supplied by amendment. Proceeds
properties
from
Quebec
Hydro-Electric
Commission/ Underwriters—Lehman Brothers and Allen
&
by competitive bidding. Probable bidders:
Co;, in the United States; and Nesbitt Thomson & Co.,
in
-.v./
April,
'
.v
'
Co. (jointly );.Kuhn/Loeb & Co. and A. C, Allyn & Co.
Inc. (jointly)/Kidder, Peabody & Co. and Stone & Webster Securities. Corp. (jointly); Lehman Brothers.
Bids
,/ —Tentatively expected to be received up to 11430 a.m.
,(EST) on March 28
-
Raymond Oil Co., Inc., Wichita,, Kansas
Jan. 29 filed 200,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—For
exploration, development and operation of oil and
properties. Underwriter—Perkins & Co., Inc., Dallas,
Tex. Offering—Postponed indefinitely.
.
gas
r
Raytone Screen Corp.
15 (letter of notification) 50,000 shares of common
f Nlc-L-Silver Battery Co., Santa Ana, Calif.
75,006 shares of 5% cumulative participat¬
ing preferred stock and 7,500 shares of common stock..
Price—At par ($10 per.share). Proceeds — To liquidate
a
bank loan of $178,635; increase inventories; and for
working capital and general corporate purposes. Under/'
Feb.
Dec. 27 filed
stock
writer—None.
/""
«/*
,'•/■••
Proceeds
—To reduce debt," for purchase of inventory and for
working capital. Office-^-165 Clermont Ave., Brooklyn,
N. Y.
Underwriter—J; P. Emanuel & Co., Inc., Jersey
(par 10 cents)./Price—$3.25 per share.
City, N; J.v '
'v,*
'••v-
v
-
Inc., New York City (4/2)
March 11 filed 241,020,shares of common stock (par $1),
into which a like number of presently outstanding shares,
of class B common stock will be converted.
Price—To
supplied by amendment. Proceeds—To certain selling
stockholders. Underwriter—Reynolds & Co., New York.
be
.investments^,working capital, etc."Office — 568, WestHoffman Ave., Lindenhurst, N. Y/ Underwriter—None.
Nyvatex Oil Corp. (3/27)
Feb. 26 (letter of notification) 225,000 shares of common
Reynolds Metals Co. (4/2)
March 12 filed 914,078 shares of common stock (par $1)
to be offered for subscription by common stockholders
stock ,par one Cent).
of record
•
Price—$1 per share. Proceeds—For
payhierif of note; and drilling and development of prop¬
erties. Office —Esperson Bldg., Houston, Tex.- Under-
each
Ohio
'
Co./ Eastman Dillon, Union Securities & Co.Bros. & Hutzler (jointly); Harriman Ripley
Co., Inc/and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
(EST) on Oct. 30 were rejected.-
&
costs..
Proceeds ^./For exploration
Underwriter—To be named latere
Michael Tzo-*
panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders. .
/ ,
filed
92,500 shares of
(4/3)
common
share for each 10 shares held; rights to
expire on April
be supplied by amendment.
Proceeds—
23,- Price—To
For investments in subsidiaries and other
corporate pur¬
Underwriter
Jbioren
—
&
Co.,
New
,
.
York
and
(
Southern Co.
Feb.
15 filed 1,507,304 shares of common stock
(par $5)
being offered for subscription by common stockholders
of record March
13, 1957 on the basis of one new share
held; rights to expire on April 4, 1957.
for each 13 shares
$20 per share.
awarded
on
March 15. Price—
Underwriter—The First Boston Corp. was
issue
the
March
on
pensation of 8.956 cents per
13, on its bid for
share.
a
com¬
'
~
1
,
Southern
Sportsman, Inc., Atlanta, Ga.
Dec. 7 filed 486,000 shares of common stock, of which
375,000 shares are to be publicly offered and 111,300
shares
are to be reserved on exercise of options to be
granted to employees of the company (latter exercisable
before Dec.
or
31, 1956). Price—$3 per share. Pro¬
buy or establish a complete sporting goods
house; other expansion and inventories. UnderwriterInvestment Underwriters, Inc., Atlanta, Ga.
Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the
ceeds—To
^underwriter, are
Sportsmen, Inc.
officers
directors
and
#
of
Southern
.
Southwide Corp., Anniston, Ala/ "
Sept. 12 filed 450,635 shares of common stock (par $1),
of which 211,681 shares are to be offered publicly 238,951
shares are to be offered in exchange for the class. A
stock of Capital Fire & Casualty Co. and common stock
of Allied Investment Corp.
Price—$2 per share. Pro¬
ceeds—For purchase of stock of Capital and Allied firms
and for purchase of U. S. Government bonds. Under¬
writer—None, but a selling commission will be allowed
to dealers for sales effected by them. Elvin C.
McCary,
of Anniston, Ala., is President.
Sperti Products, Inc., Hoboken, N. J.
29 filed $745,300 of 6% debentures due March
1,'
1972 and 14,906 shares of common stock (par $1) to be
Jan.
stock,
the
in units of
of
shares
which
of stock
a
$100 debenture
$545,300
are
to
of
be
and two shares of
the debentures
offered first
in
and 10,906
exchange for
54,530
outstanding shares of 5% cumulative
vertible preferred stock (par $10) at the rate of one
unit for each 10 shares of preferred stock.
ing $200,000 of debentures and 4,000 shares of
stock
to
are
be
Proceeds—For
publicly offered.
general
corporate
con¬
new
The remain¬
Price—$100
common
per
unit.
including
working capital and for redemption of any unexchanged
preferred stock. Underwriter—Smart, Clowes & Oswald,
Inc., Louisville, Ky. Offering—Expected shortly.
purposes,
•
Spokane Natural Gas Co.
18 filed 135,315 shares of common stock (par $1)
being offered for subscription by common stockholders
one new
on
or
share for
about April
at
as
the rate of
one
rights to expire
Proceeds
—
share for each three shares held
(with
an
oversubscription privilege);
April 2.
Price — $7.50 per share.
Together with bank loans, for construction
on
Underwriter—White, Weld & Co., New York.
program.
•
new
of March 19, 1957
Stouffer
Corp., Cleveland, Ohio
(3/26)
March 5 filed 245,270 shares of common stock (par $2.50),
of which 155,270 shares are to be sold for account of
certain
stockholders and 90,000 shares for the
Price—To be supplied by amendment. Proceeds
selling
company.
Reid & Co., Inc.,
Feb.
shares are how^outstanding,-Price—To be
supplied by amendment.
15
—To pay short-term notes, to reimburse the
,
„
Rochester
Orefield Mining Corp., Montreal, Canada
Oct/15 filed 900,000 shares of capital stock (par $1), of
which 200,000
rights to expire
,'
.
.
...
Sanford, N. C.
Feb. 28 filed 190,000 shares of common stock (par $1), of
which 150,000 shares are to be sold for account of com¬
pany and 40,000 shares for selling stockholders.
Price—
To be supplied by amendment. Proceeds — To reduce
outstanding obligations and for working capital. Under¬
writer—Straus, Blosser & McDowell, Chicago, 111. Offer¬
ing—Expected this week.
aun.
'
April ,2, 1957„on the basis of
shares held;
Roberts Co.,
Proceeds—For construction program. Underwriter—To be determined by competitive biddings Prob¬
able bidders: The First Boston Corp.; Blyth & Co., Inc.;
(par $100).
and Salomon
New York.
York.
Sept, 20 filed 60,000 shares of cumulative preferred stock
Kuhn Loeb &
11
1957.
—
Power Co.
1
preferred stock, to be used to repay bank loans and for
program.
Underwriters—The First Boston
Corp. and Stone & Webster Securities Corp., both ot
construction
Price—To be supplied by amendment. Pro¬
ceeds
For expansion program. Underwriters — Dillon,
Read & Co. Inc. and Reynolds & Co., Inc., both of New
16,
writer—Milton D. Blauner & Co., Inc.; New York, N. Y.
•
•
Feb.
Revlon,
★ November Corp., Lindenhurst^ N. Y. •
/ March, 15 (letter of. notification)' 100,000 shares of class
B stock.- Price—At par ($1 per share).
Proceeds—For
C
(with an oversubscription privi¬
April 1, 1957. Price—$18 per
on
Proceeds—From sale of 163,334 shares of common
stock and from private sale of 20,000 shares of
$100 par
offered
•
"
-j
•
Nesbitt Thomson & Co.,
Ltd.; Wood. Gundy & Co., Ltd. and Osier, Hammond &
Nanton, Ltd. in Canada. Offering—Expected some time
Underwriter—To
Halsey, Stuart & Co. Inc.; White, Weld & Co.; Blair &
Co. Incorporated; The First Boston Corp.; Equitable Se¬
curities Corp. and Eastman Dillon, Union Securities &
•
,'••
-
.
of stock. Price—To be
Inc.
prpgram.
Lehman Brothers and Allen &
to be offered in units of $500 of debentures and 25 shares
(3/28)
$6,000,000 of first mortgage bonds due 1987.
Orleans
—
States; and
due, 1985 and 750,000 ,$hareS(of common stock
Lynq share./Dealer-Managers—Paine, Webber,
be determined
"■
United
★ Quebec Natural Gas Corp.
March 15 filed $15,000,000 of subordinated
Mass'.r /'/''• / V/-/;-'/"
New
"
Underwriters
the
filed
offered
/. for each
•
in
Ltd.; Wood,-Gundy & Co., Ltd. and Osier, Hammond &
Nanton, Ltd. in Canada. Offering—Expected some time
~
New
lege); rights to expire
share.
on
Corp.
$25,000,000 of first mortgage bonds due
acquire gas distribution and other related facilities in
Montreal, Canada,- from Quebec Hydro-Electric Com¬
Bruns-
Electric Power Commission to repay bank loans.
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Temporarily delayed.
to .be
filed
^ To
/ wick
Dec, 3
••
1980.^ Price—To be supplied by amendment. Proceeds—
-
Price—To be supplied by amendbe
*
•
Natural Gas
★ Quebec
New
for each six shares held
Subscription warrants to be mailed
...
'4
Power Co.
&
163,334 shares of common stock (par $5),
being offered for subscription by common stockholders
of record March 18, 1957 on the basis of one new share
$250,000 of three-year
subscripfion privilege);t-ights to expire on April U J9o7,.
tions, * Inc.; and for working capital.
Business—TelePrice—$27-dier share.
.^Proceeds—For general corporate vj3jon releases. Underwriter—E. L. Aaron & Co., New
purposes. .Office—47 West Exchange St., Akron, Ohio.
York
;
Art r\
Electric
filed
Philadelphia, Pa.
Pyramid Productions, In©,, New York
moit
Underwriter—None.
21
poses.
— \; Seg)t, 27 filed 220,000 shares of common stock (par $1),
(letter
notification)9,778 shares of common
stock (par-$10) being offered for_ subscription by com-
-
series
8%
v
^Machinery Co.,
Proceeds—For
—
★ Prudential Investors, Inc.
March 1 (letter of notification)
"*•'
n
market.;
Plymouth Bond & Share Corp., Miami,
Joseph A. Rayvis,~.also of Miami, is President'.
Indefinitely
^
Savannah
Feb.
stock (par 10
cents), to be offered for subscription by common stock¬
holders of record April 3, 1957, on the basis of one mew
.
/
0
,,
Shares, Inc.,
common
improve¬
equipment
and buildings in Israel; for process
machinery; for utilities; working capital;' and other
corporate purposes. Underwriter—None.
March
shares of class A common stock
(par $2) and- 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Piooeeds
—To selling stockholders. Office -v Little Rock, Ark.
.
...,
^
a
u
-ii
Underwriter .^ Equitable Securities Corp., Nashville,
Equitable Securities Corp., Nashville,
..
Gas
Price—*
site
and
stockholders..
per
"/ National Old Line Insurance .Co;-4 ".
.
None. J Standard
—
Standard
stock.
common
Proceeds—For
• Southeastern Public Service Co.
Nov. 15, 1955 filed 50,000
_T
of
75,000 shares of
($100 per share).
ments
of
as
filed
1
par
subscribe, plus any unsubscribed share and the remain¬
ing 7,026.25 shares not offered directly to Standard Gas
share. Proceeds—For acquisi^
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc'.* Under¬
writer—Gearhart & Otisy Inc.,-New York//^ '
Price—$1.25
Gas shares held
owner of
stock, will purchase
all shares of Pittsburgh Rys. to which it is entitled to
45.59 %
Feb. 19 filed 3,120,000 shares of common stock (par one
cent).
March
At
•
April 2, 1957. The
subscription period will expire on April 24. Price—$6
per share.
Proceeds—To Standard Gas & Electric Co.
(4/3)
New York
Rogosin Industries, Ltd., New York
Utah
(par $1).
share:
per
four Standard
share. Proceeds—For working capital.- Office—314
St., Spartanburg, N. C. Underwriter—None;
National Lithium Corp.,
stock
common
Pittsburgh Rys. Co., Pittsburgh, Pa. (4/3)
13 filed 547,678 shares of common stock (no par),
of which 540,651.75 shares are to be offered for subscrip¬
tion by Standard Gas & Electric Co. common stockhold¬
ers on the basis of one Pittsburgh Rys. share for each
Pine
•
Rocky Mountain Research, Inc.
\
(letter of notification) 306,000 shares of common'
(par 10 cents). Price—$1 per share. Proceeds—
For working capital and market research.
Office—625
Broadway Bldg., Denver, Colo. Underwriter — G. R.
Harris & Co., Denver, Colo.
stock
•
Nov. 30 {letter of notification) 33,000 shares of common
stock (par $1.25) to be offered to stockholders on the
basis of one share, for each seven shares held.-Price—$8
per
Corp., Salt Lake City,
39
Feb. 8
*>;
Feb.
".V-r
Fidelity Insurance Co,>
/*
Proceeds—For drilling test wells
and .general*- corporate purposes.
Business—To develop
oil and gas properties. Underwriter—Market Securities,
Inc., Salt Lake City,i Utah.
Feb. 28 (letter of notification) 156J>60
stock. Price—At par ($1 per share):
imbursement of treasury for monies
•National
i "1
1,000,000; shares of
Price—$1.25
;
Co.
Insurance
Production
Feb. 4 filed
Philadelphia, Pa.
Bankers
^
*<?-'•£•»•
19 filed
126,000v.shares of common stock (par 50
cents),. ; Price— $13.30 per-share. Proceeds — To selling
stockholders. Underwriter—Scott, Horner & Mason, Inc.,
Lynchburg, Va.
Monticello Associates, Inc. T* "«V
7 -:- :-.
Feb;. 13 (letter of notification) 300,000*shares of con*non
stock. Price—At par ($£ per share).
Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
ir National
(1371)
15 filed
Telephone Corp.
195,312.shares of common stock (par $10)
treasury for
expansion costs, and to equip three restaurants. Under¬
writers
—
Glore, Forgan & Co., New York, and Fulton
Cleveland, Ohio.
Stuart Hall Co., Inc.
March 5 (letter of notification) 40,000 shares of common
stock (par $1). Price—$6.75 per share. Proceeds—For
working capital. Office—121 W. 20th St., Kansas City,
Mo. Underwriter—White & Co., St. Louis, Mo.
•
•
Theatrical
Oct.
30
filed
Interests
52,000
Plan, Inc., New York City
shares of class A stock (par five
cents) and 28,000 shares of class B stock (par five cents).
Price—Of class A, expected at $10 per share in lots of
not less than 25
being offered for subscription by common stockholders
ceeds—For
of record March
shares; of class B, expected at par. Pro¬
fields.
.6, 1957. at the rate of one new share for
each five shares held; lights to expire on March 25. Price
—$15.50 per-share. Proceeds — To reduce bank loans.
Underwriter—The First Boston Corp., New York.
investment
in
theatrical and entertainment
Business—A non-diversified closed-end manage¬
ment investment company. Underwriter—None.
Continued
on
page
40
J
40
(1372)
The Commercial and Financial Chronicle
Continued
from
Western
39
page
Thermoray Corp.
June 29 (letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.
^-Toensneier Adjustment Service Co.
March 6 (letter of notification) 1,000 shares of non-vot¬
ing preference common stock.
Price—At par (S25 per
Transition Metals
22
Jan.
&
Chemicals,
Probable
Co.
bentures
(par $10) to be
and preferred
stock
Feb.
common
April 2, 1957
expire
class
amendment.
tive
new
m
and/or
April
on
stockholders of record
the basis of
on
A
16,
one
class
one
be
retirement
Proceeds—For
which
stock
of
7%
latter
Reynolds Corp.
United
company
owns
50.7%
a
writers—Dillon, Read & Co.
Inc.
one
and
Price—To
common
Feb.
by.
of
ACF-Wrigley
of
common
stock
Wrigley. Price—$2
velop
Co.,
store
Inc., both of New York.
and
March
common
Inc.,
Miami,
Central
•
March
50
Corp. of America
13
cents)
filed
to
be
178,646
share for each two shares
for
stockholders at the rate of
of
one
new
common
stock
by
>
(par
five'
West Penn Power Co.
an
unspecified number of shares of
common;
) to be offered for subscription
by common
(no par
stockholders (other than the parent, West Penn Electric
Co.) of record on or about March 21, 1957; rights to
expire on or about April 16. The number of shares will
foe not more than 251,606 (on a l-for-14
basis) nor less
than 234,832 (on a l-for-15 basis). Price—It is
estimated
that the offering price will be not less
than $48 nor"
more than $53 per share.
to
be
None.
used
West
for
Proceeds—About $12,000,000—.
construction
Penn
'
Underwriter—
Co., the parent, owner of
approximately 95%, of the outstand¬
3,346,367 shares, or
ing West Penn Power Co.
purchase all of the shares
stockholders.
Western
program.
Electric
Carolina
Tel.
common
not
stock, has agreed tosubscribed for by public
Co., Weaverville, N.
Bfeb. 10 (letter of notification) 43,635 shares of
stock
(par $5) being offered to stockholders
basis ot one snare for each five shares
held;
C.
common
on
the
rights to
expire
on
March
27.
For working capital.
Price—$6 per share.
Underwriter—None.
Proceeds—
this
reported
following
Irwin
Air
used initially to reduce bank
borrowings. Underwriter—
Biyth & Co., Inc., New York.
stock
was
Jacobs
merger
&
Co.
(to
company
of
of
First
Chicago)
be
Mason, Inc.,
&
Proceeds—For
Underwriter—For any debt secu¬
rities, Kidder, Peabody & Co;; for common
stock, Kidder,
Peabody & Co. and Estabrook & Co., both of New York.
Central Louisiana Electric
Co., Inc.
Jan.
25
it
was
reported that
the
company
plans
some
debt and equity financing in 1957.
Proceeds—For $12,500,000 construction program. Underwriters —
without underwriting.
Mortgage
plans
offering
surviving
a
Underwriter—Baker, Simonds
Detroit, Mich. Offering—Expected in April.
common
share for each
8c
the balance from sale of common
stock).
& Co.,
Products, Inc., Emmaus, Pa.
Feb. 26 it
was reported
company may offer to its com¬
stockholders some additional common
shares. Un¬
derwriter—Reynolds & Co., New York.
mon
Jan.
sell
pay
21
it
Power
was
Co.
announced
bank loans and for
—To
be
L
(5/9)
company
new
Proceeds—To
construction.
First Boston Corp. and Coffin 8c
Burr, Inc.
Underwriter
Halsey,
&
&
Dillon,
& Co., Equitable
Securities Corp. and
(jointly); Lehman Brothers: Harriman
Co.
Ripley & Co. Inc. and Goldman, Sachs & Co.
(jointly);
Biyth & Co., Inc. and Kidder.
Peabody & Co. (jointly);
Morgan Stanley & Co. Bids—Expected to be
mon
to
for
Bids
a.m.
Aluminum
March
12
it
registration
covering
(payable
(EDT)
Co.
was
Canada,
with
a
proposed issue
in U. S. dollars).
borrowings
New
of
May 9.
and
York.
Registration—Planned
Ltd.
(4/15-19)
announced
statement
The First Boston
of
on
for
plant
company plans to file a
the SEC later this month
of $125,000,000
debentures
repay bank
Underwriters—
Corp. and Morgan Stanley & Co., both
American Fletcher National Bank &
Trust Co.
March 11 it was announced bank
plans to offer to its
stockholders the right to subscribe for
100.000 additional
shares of capital stock
(par $10 ) at rate of one new share
four shares held March
20; rights to expire on
April 8. Stockholders on March 21 will vote on
increas¬
ing the authorized capital stock to 500,000 shares.
Pro¬
ceeds—To increase capital and
surplus accounts. Under¬
writers—The First Boston
Corp., New-York; and City
for each
(5/1)
Chicago, Rock Island & Pacific Ry. (5/14)
Bids are expected to be
received by this company on
May 14 for the purchase from it of
$3,000,000 equipment
trust certificates.
Probable bidders: Halsey, Stuart 8c
Co. Inc.; Salomon Bros. &
Hutzler.
Proceeds—To
expansion.
& Pacific RR.
are
expected to be received by this
company on
May 1 for the purchase from it of
$6,000,000 equipment
trust certificates.
Probable bidders:
Halsey, Stuart &
Co. Inc.; Salomon Bros. &
Hutzler.
April 12.
11
Bros. & Hutzler.
Chicago, Milwaukee, St. Paul
received
up
Bidders for
bonds may include: Halsey, Stuart & Co.
Inc.; Biyth
Co., Inc. and Kidder, Peabody 8c Co.
(jointly); The
First Boston Corp. and Coffin 8c
Burr, Inc. (jointly);
Harriman, Ripley & Co. Inc.; Merrill
Lynch, Pierce,
Fenner & Beane and
White, Weld 8c Co. (jointly); Salo¬
any
by competitive bidding. Probable
Stuart & Co. Inc.; Eastman
Union Securities
Drexel
Maine Power Co.
Dec. 31, W, F.
Wyman, President, announced that "while
the company expected to do some
permanent financing
in 1957, no definite
plans have yet been worked out.
Bank loans outstanding at the
year end totaled $10,500,000.
Construction expenditures for 1957 are now esti¬
mated at between $19,000,000 and
$20,000,000. It is esti¬
mated that $5,500,000 of the amount
needed for this pro¬
gram will be supplied from internal cash with
the balance to be
supplied from outside sources. Underwriter*
to stockholders) may
Ripley & Co. Inc., The
re¬
determined
bidders:
In 1954, a convertible debenture
underwritten by Kidder,
Peabody & Co.
—Any common stock offer (first
be underwritten
by Harriman,
plans to issue and
$14,500,000 first mortgage bonds.
was
: Central
Corp.
public
offering of $1,000,000 class A 6%
participating convert¬
shares held as of April 2;
rights to expire on April 16.
Price—To be supplied by amendment. Proceeds—To be.
Feb. 19 filed
it
Alabama
subscription
Gas
construction program.
warehouses, shopping centers and
Underwriter—Allen & Co., New York.
ible stock (par $1).
(4/2)
shares
offered
4
and
lumbia Securities Co., Inc., of Florida (name
changed to
Alfred D. Laurence & Co.),
Miami, Fla.
Vitro
Horner
,
Hudson
Electric Corp.
Feb. 1 it was announced that the
company plans, before
the middle of the
year, to issue approximately
$12,000,000 of new securities
(two-thirds in debt securities and
by
Advance Mortgage Corp.,
Chicago, l!L
corporation
Aug. 31 filed 1,500,000'shares of common stock. Price—
At par (20 cents per share).. Proceeds—For exploration
and mining operations in Venezuela. Underwriter—Co¬
9
Underwriter—Scott,
Peabody & Co. and White, Weld 8c Co. placed last bond
issue privately; last preferred stock
issue also placed
privately; with common stock locally or to stockholders,
Dec.
Fla.
Venezuelan Sulphur Corp. of America (N. Y.)
Jan. 29 filed 150,000 shares of common stock
(par 50
cents). Price—At market, but not less than S3 per share.
Proceeds—For mining operations. Underwriter—None.
^
reported company plans to construct a
at an estimated cost of about
Lynchburg, Va.
(par $1)
—
Mines,
was
Kidder,
writer—Vanderbilt Mutual Fund Management Corp., 458
So. Spring St., Los Angeles 13, Calif.
Diamond
it
$3,700,000.
(4/3)
stock
Vanderbilt Mutual Fund, Inc., Los Angeles, Calif.
Bee. 31 filed 50,000 shares of common stock (par $1).
JPrice—At market. Proceeds
For investment. Under¬
Venezuela
11
pipe line in South Carolina
operate
locations.
Co.
announced
★ Carolina Pipe Line Co.
Price—
subscription warrants of ACFshare. Proceeds—To acquire, de¬
per
M.)
was
authorizing
—
held; 120,000 shares on
the basis of 30 shares for
each $1,000 of debentures
held;
57,2.50 shares to be offered holders of
options to purchase
ACF-Wrigley common stock; and 75,000 shares to hold¬
ers
it
Ripley & Co. Inc.; White,
Underwriter
Dillon, Read & Co., Inc., New York,
handler previous preferred stock
financing, while Kid¬
der, Peabody 8c Co. underwrote General Tire
8c Rubber
Co. financing.
stock
common
(A.
$15,000,000, in connection with its proposed recapitalization
plan. There are no specific objectives involved. Control
—Acquired by General Tire 8c Rubber Co. in 1956.
•
security holders of
the following basis: 1,816,-
on
on
Harriman
.
stockholders on May 7 will
a new class of 100,000 shares of
preference stock (par $100) and on increas¬
ing the authorized outstanding indebtedness to
Underwriter—None.
one
Brothers;
cumulative
Proceeds—To repay note payable and for
the basis of
27
vote
shares and
Wrigley Properties, Inc., Detroit, Mich.
on
announced that
company may issue and
by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Byers
be
909 shares
and
Under¬
Reynolds &
10
ACF-Wrigley Stores, Inc.
Co.
interest.
of
was
Weld & Co.
(3/25-29)
share for each six shares held.
new
share.
per
19 it
determined
ders:
Worcester County Electric Co.
I
March 1 (letter of
notification) 597 shares of common
stock (par $25) to be offered to
89 stockholders on the
•
cumula¬
Foil
States
stock
be
Co.
Offering—
(par
units
March 6 filed
2,069,159 shares of
to
be offered for
subscription
about
supplied
Un¬
&
supplied by amend¬
Proceeds—To repay bank loans and for
expansion
basis of
for
and
firm.
Underwriters—Security Associates, Inc., Win¬
Park, Fla.; First Florida Investors, Inc.,
Orlando, Fla.,
Bache &
Co., New York, N. Y.; and Grimm &
Co.,
Orlando, Fla.
subscription to proposed
stock offering to be made bv Reynolds Metals Co.,
preferred
packing
ter
,
Inc.;
Co.
$25,000,000 of first mortgage bonds. Stockholders to
April 30 on approving proposed new
financing.
Proceeds—For construction program. Underwriter—To
Lehman
in
(4/15)
vote
40,000 shares of common stock (par $10)
shares of cumulative preferred stock
preferred share.
ment.
class A share for each
held; rights to
Price—To
1957.
or
March
Edison
sell
program.
common
on
★ Boston
redeem
Business—Meat
be offered
to
RR.
are
expected to be received by the
company on or
about April 15 for the
purchase from it of $3,585,000
equipment trust certificates to be due
annually in 1-to15 years.
Probable bidders: Halsey, Stuart & Co.
filed
4,000
$100)
shares
B
14
and
(par $1) to be offered for subscription by class A
and class B
seven
A
Bids
Salomon Bros. & Hutzler.
Hallgarten & Co., all of New York City.
working capital.
of * class
Baltimore & Ohio
presently outstandinj
bonds, to repay bank loans and for ex¬
program.
sale of 125,000 shares of
(par $3) is planned the latter part
early in May. Of the total 50,000 shares will
111.
cago,
of
Winter Park Telephone Co.
(4 2)
shares
B
1957.
To
—
•
,
announced
stock
—
20-year sinking fund de¬
Price—To be supplied by amend¬
1976.
was
(4/29-5/3)
corporate purposes.
Indefinitely postponed.
$55
Co.
due
pansion
indefinite.
Foil
of class
it
'
Lines, Inc.
company and 75,000 shares by selling stock¬
holders. Price — $10 per share. Proceeds
For general
Business—A short haul motor com¬
mon carrier
operating over 3,000 miles or routes in Illi¬
nois, Indiana, Michigan and Ohio. Office—Grand
Rapids,
Mich.
Underwriter—Cruttenden, Podesta & Co., Chi¬
Underwriter—None;
derwriters—Smith, Barney & Co.; Glore Forgan
and
Air
746.270
Associated Truck
of April or
be sold by
Underwriter—None.
Proceeds
first mortgage
Conditioning Corp.
iSept. 27 filed 600,000 shares of common stock (par 10
«cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares; plug
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro<eeeds—For working capital and general corporate
pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Burnside & Co., Inc., New York. Offering—Date
filed
•
by officers and agents of company.
March 25,
on
ment.
None.
States
chase any unsubscribed shares.
13
Wilson & Co., Inc.
Aug. 28 filed $20,000,000
Price—$15 per; share. Proceeds—To retire
issued and outstanding preferred stock.
Underwriter—
12
associates,
common
stockholders.
United
his
March
Cincinnati, Ohio.
—
March
Underwriter—None. Harvey L. Schwamm and
who acquired control in 1950, will pur¬
program.
Price—$8.56 per share. Pro¬
ceeds—For working capital. Office—3500 Madison
Road,
Corp., Leesburg, Va.
shares of 6% cumulative convertible
preferred stock, Price—At par ($1.50 per share). Pro«ceeds
For asphalt plant,
equipment^ working capital
;md other corporate purposes. Underwriter—None.
States
to be received
class A
expire
Material
first offered for subscription by common
each
five shares held as of Jan.
21; rights expire on April 30.
Price—At par ($10 per
share),; Proceeds—For expansion
(EST) on April 2 at Room 918, 201 Devon¬
shire St., Boston, Mass.
center.
>
.*
American Trust Co., New York
was announced bank will offer
to its stock¬
holders the right to subscribe for 50,000
additional shares
of capital stock on the basis of one
new share for
a.m.
recreation
Corp. and
March 8 it
common stock
(par $1) to be offered for subscription by
class B stockholders of record Feb.
4, 1957, on the basis
of one new share for each seven shares
held: rights to
Nov. 28 filed 500,000
United
(jointly).'Bids—Tentatively expected
Williamson Co., Cincinnati, Ohio
19 (letter of
notification) 23,307 shares
«Co., Inc., Washington, D. C.
Turf Paradise, Inc., Phoenix, Ariz.
Jan. 11 filed 50,000 shares of common stock
•
Halsey, Stuart & Co. Inc.; Equitable
Corp. and Lee Higginson Corp. (jointly);
Biyth & Co. Inc.; Blair & Co. Incorporated; Coffin &
Burr, Inc.; The First Boston Corp. and White, Weld &
up to 11
Thursday, March 21, 1957
.
Corp., Indianapolis Bond & Share
Collett 8c Co., all of Indianapolis, Ind.-
loans.
bidders:
Feb.
and proprietary development.
Office —4932 St.
Ave., Bethesda 14. Md.
Underwriter—Whitney &
Rock
bank
Securities
onermg to oe m^de
Gerber, Inc., New York.
Tri-State
repay
Underwriter—To be dctennined by competitive bidding.
ness^-Mountain
Tripac Engineering Corp.
Feb. 27 (letter of notification) 100,000 shares of clasfc A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬
Etmo
Proceeds—To
.
Securities
—
plant and other facilities; for equipment; and
working capital. Office—Wallkill, N. Y. Underwriter—
ment
(42)
debentures due Dec. 1, 1976, and 6,000 shares of common
stock (no par) to be offered in units of a $400 deben¬
ture and three shares of stock.
Price
$500 per unit.
Proceeds—For construction and working capital. Busi-
Inc.
1,615,500 shares of common stock and
common
stock purchase warrants, of which
of
M. S.
1907.
Co.
mortgage bonds, series
Wildcat Mountain Corp., Boston, Mass.
13 filed $800,000 of 6% subordinated cumulative
filed
1.126,500
Electric
Aug.
250,000 shares of stock and 250,000 warrants are to be
offered publicly in units of one common share and one
warrant. Price—$2.01 per unit.
Proceeds -For construc¬
tion
C, due April 1,
Underwriter—None.
share).
Massachusetts
March 5 filed $12,000,000 of first
.
■k Cincinnati Gas & Electric Co.
March
(5/7)
18 it was
reported company plans to issue and
$25,000,000 to $30,000,000 of first
mortgage bonds.
Underwriter—To be determined
by competitive
sell
"
bidding
Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman
Dillon. Union Securities &
Co., and White, Weld & Co.
(jointly); Biyth & Co., Inc., and The First
Boston
Corp.
(jointly); Morgan Stanley & Co. and W.
E. Hutton & Co.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane and
Lehman Brothers
(jointly). Bids—Tentative scheduled
for May 7.
....
Volume
135
Number 5622
.
t The Commercial and Financial Chronicle
.
General
Cincinnati, New Orleans & Texas Pacific Ry.
March
issue
it
4
and
sell
the
plans
company
Dec.
to
about
tificates.
Cleveland
Nov. 12 it
& Hutzler.
Electric
would like to
Illuminating Co.
ital
reported company plans to issue and sell
of first mortgage bonds in the Summer of
Rubber
Co.
bidding.
come
up
with
investments during
Georgia
and for construc¬
Underwriter—To be determined by com¬
Jan.
petitive
21
it
bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil¬
lon, Head & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
suance
liams
one
company
issue of preferred stock.
★ Iowa
$18,000,000 will be put into cap¬
the fiscal year to end Nov. 30,
Power Co.
Co.
(jointly);
Glore,
•
Coastal
March
6
Forgan
*
•
Co.;
ceeds
10
(6/6)
'
Stanley & Co.; Blyth & Co., Inc., Kidder, Peabody &
Co. and Shields & Co.
(jointly); Equitable securities
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
Transmission Corp.
it
the
reported
was
plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units. (Common stock not sold in units
would be purchased by
Delhi-Taylor Oil Corp., or its
company
expected to be received up to 11
(EDT)
a.m.
June 6.
on
★ Government Employees Corp.
average price of $10 per share.)
Pro¬
ceeds—Together with funds from private sale of $40,000,000, for construction program.
Underwriters—Lehman
(6/3)
March 12 it was announced company plans to offer to
common stockholders about June 3 the
right to subscribe
for approximately $500,000 of convertible capital deben¬
Brothers and Allen & Co., both of New York.
tures due
stockholders at
Columbia
an
Gas
Jefferson
Inc.
Feb. 18, company announced that it plans the issuance
and
sale
of
additional
debentures
in
order
to
Weld
&
total
a
Fall.
Rio
Grande
&
& Co.
Paso
it
26
Electric Co.
stockholders
common
right to suoscribe
tional
shares of
new
one
share
on
or
for
Webster
&
Feb.
sell
Paso
26
(par
shares
15
common
Electric
Co.
exceed
6%.
Previous
bond financ¬
13
it
reported
was
company
Union
bidders:
late
this
Halsey, Stuart & Co. Inc.; Equitable
Lehman Brothers, Eastman Dillon,
Corp.;
Securities
&
Co.
Salomon
and
Houston Texas
6
it
Gas
&
Oil
into
in
units.
ent
the basis of
preferred stock)
Part of
stock will
common
stockholders
at
$10
Hutzler
Co., Inc.
share.
per
stock
offered to
be
common
pres¬
Proceeds—For
Underwriter—Blyth & Co., Inc., San
Francisco and
New
stock
(par $50) from 1,000,000 shares to 1,600,000 snares.
Underwriters—Merrill
and
First Boston
The
Lynch,
Pierce,
Fenner
&
stock
feasible, and
to
Jan.
its
3
it
was
loans
stockholders
in
additional
common
writers
Merrill
—
May
stock
or
company
June
on
a
plans
about
l-for-10
Lynch, Pierce,
offer
$11,000,000
of
basis.
Fenner &
Under¬
Beane
Florida
4
Power
it
&
Light Co.
reported
new
26
it
and
Feb. 20 it
record
Power
determined by competitive
Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Merrill Lynch, Pierce, Fenner &
Beane and Kidder, Peabody & Co. (jointly); The First
Boston Corp.; Blyth & Co., Inc. and Lehman Brothers
(jointly). Bids—Expected to be received on May 21.
Probable bidders:
bonds
Feb. 5 it
was
reported company plans to issue and sell,
first to common stockholders, $40,000,000 of convertible debentures. Underwriters—Paine,
.Webber,. J'ackson & Curtis and Stone & Webster Secu¬
rities Corp., both of New York; and Mitchum, Jones &
probably
in June,
Templeton of Los Angeles, Calif.
and
writers
gram.
Corp.
and
Underwriter—May
be
Machines
Carp.
i
—
plans
company
(5/21)
May
21,
to
1957,
Co.
reported company plans to sell about $28,-
was
800,000 of
General Telephone
probably
and
1959
construction.
Business
of
Interstate
(5/21)
company
Underwriter—To be
bidding. Probable bidders:
will be
Additional secu¬
1960, amounting
Proceeds—To repay bank
available
sold in
announced
was
plans to issue and
sell $15,000,000 of first mortgage bonds due 1987.
Pro¬
ceeds—To repay bank loans and for construction pro¬
was
it
make
offer its
approximately
$200,000,000 of additional capital stock, following pro¬
posed split up of the present outstanding shares on a
2-for-l basis.
Proceeds—For working capital.
Under¬
writer—Morgan Stanley & Co., New York.
to
to
Kidder, Peabody & Co., both of New York.
March
for
and
stockholders
that
are
be
to
International
privately.
Corp.
reported
loans
approximately $14,000,000.
Feb.
Power
conditions
market
if
Lehman Brothers, Goldman, Sachs & Co. and The First
Boston Corp., who underwrote last equity financing.
Dec.
31,
1956) and for construction program. Underwriters—Pre¬
at
1957
utilized, during at least part of 1957.
14, D. C. McKee, President, announced company
plans to issue and sell some additional bonds this year.
Florida
bank
porary
in
issue of $8,000,000 in bonds in 1958. Tem¬
an
rities will need
March
vious bond financing was done
time
some
securities ($19,800,000 of first mortgage
$9,000,000 of common stock). Under¬
be determined
by competitive bidding.
new
about
To
For bonds:
Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Beane and Kidder, Pea¬
body & Co. (jointly); White, Weld & Co. and R. W.
Pressprich & Co. (jointly); Salomon Bros. & Hutzler;
Smith, Barney & Co. For stock: if competitive, Blyth &
Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Harriman Ripley & Co.
Inc.; Smith, Barney & Co. Offering—Probably in May.
Iowa-Illinois
Feb.
jell
26
it
later
was
in
Gas
&
Electric
reported
1957
abcut
preferred
stock,
to
Co.
company
be
to tissue .and
new
securit es.
plans
$11,000,000
Proceeds—For construction
any
Industries
Underwriter—The
(4/8-12)
Corp.
reported registration is expected in near
was
of
750,000 shares of common stock (par $4).
be supplied by amendment.
Proceeds — To
selling stockholders.
Underwriters — The First Boston.
Corp., New York; Dean Witter & Co., San Francisco,
Calif.; and Carl M. Loeb, Rhoades & Co., New York.
Price—To
Laclede
Feb.
19
it
Gas
first
of
Co.
the
announced
was
is planning an
during the first half of
company
bonds
mortgage
1957, but the specific details of the financing have not
been finally determined. Proceeds—To repay bank loans
(expected to be around $6,800,000) and for construction
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
purposes.
tive
Beane
Reinholdt
and
of
Underwriter—For
determined by competitive
program.
&
Gardner
(jointly);
The
First
Boston Corp.
Lincoln
•
Feb.
to
Telephone & Telegraph Co.
reported company plans irr April to offer
stockholders 68,750 additional- shares of
stock (par $16.66%) on the basis of one new
18 it
its
was
common
common
share for each three
Witter &
Underwriter
shares held.
—
Dean
Co., San Francisco, Calif. Registration—Expect¬
Star Gas Co.
Lone
ir,
11
an.
it
announced
was
company
plans to
issue and
sell $30,000,000 of debentures.
loans
and
First
Boston
Corp.,
late
New
April.
&
Nashville
Offering—Tentatively
York.
RR.
in
expected to be received by the company some
are
time in
construction
for
expected
Proceeds^-To repay bank
program.
Underwriter—The
the Fall for the purchase from
it of $14,400,000
equipment trust certificates.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Metropolitan Edison Co.
was reported that company is
Jan. 29 it
curities Corp.;
★ Empire District Electric Co.
Kaiser
future
Beane
Corp., both of New York.
Lynch, Pierce, Fenner &
Beane; Stone & Webster Se¬
Equitable Securities Corp.; Kidder, Peabody & Co., Shields & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on May 15.
•
March 13 it
Louisville
Underwriter—To be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill
($2,200,000
Corp.
Kaiser Co., or of certain other assets.
First Boston Corp., New York.
Bids
Power Co,
Feb. 7, the directors approved, subject to stockholder
approval, an increase in the authorized serial preferred
as
(5/15)
loans
Industries
to meet the $25,000,000 installment due April
1, J957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the
securities of the companies owned by
the Henry J.
York.
Illinois
Dealer-Manager—
Indianapolis Power & Light Co.
Nov. 21, H. T. Prichard, President, announced that pres¬
ent plans contemplate an issue of $6,000,000 of preferred
bank
Kaiser
con¬
struction program.
(probably with
Proceeds — To reduce
was
repoited company plans to issue and
$6,500,000 of first mortgage bonds. Proceeds
repay bank loans and for construction program.
retire
r.
ed late in March.
company
$18,241,944 of
and
&
plans to offer
interim notes (convertible
publicly $22,405,556 of 5Vz%
it
Proceeds—To
program.
Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds due 1987 (later
changed to $15,000,000). Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids — Expected in
June or July, 1957.
Corp.
that
reported
was
&
Bros.
(jointly); Lazard Freres & Co. and Blyth
(jointly); Kidder, Peabody & Co.
about
—To
issue of convertible deben¬
an
expansion
Inc.; Blyth & Co., Inc.; Stone & Webster Securities Corp.;
Lehman
Brothers, Merrill Lynch, Pierce, Fenner &c
offer
may
timing, etc. has not yet been determined.
Underwriter—To be determined by competitive bidding.
its
Corp., New York, acted
stock offering last year.
to
Houston Lighting & Power Co.
Probable
held
construction
Securities
on
not
Fall approximately $25,000,000 firs),, mortgage bonds, but
★
$5)
(Hawaii)
company
exact amount,
about
privilege).
new
dealer-manager for
El
stock
was
Securities
to
Proceeds—For
issue
done privately.
.
Halsey, Stuart
offer
announced
was
rate
Feb.
(3/27)
plans to
it
ing
May 7, 1957 the
before May 21 for 119,522 addi¬
each
bank loans and for
Stone
record
common
oversubscription
an
of
9
March
company
Corp.; Carl M. Loeb, Rhoades
Offering—Expected in June.
interest
(5/7)
reported
was
Proceeds—To repay bank loans and for
Underwriter—To be determined by
plans to issue and
$2,000,000 of first mortgage bonds, series F, at an
sell
Inc.; Salomon Bros. & Hutzler.
El
Feb.
Probable bidders:
Co.
March
plans to issue and sell
RR.
Lee
★ Hilo Electric Light Co., Ltd.
Bids will be received by this company up to noon (MST)
on March 27 for the purchase from it of
$4,800,000 equip¬
ment trust certificates.
stock.
Stone & Webster Securities
(6/11)
Western
Corp.;
(jointly); Stone
Higginson Corp.
bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beane and Lehman Brothers (jointly);
—
&
Securities
Inc.
competitive
Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Paine, Webber, Jackson and
Curtis (jointly); Morgan, Stanley & Co. and the First
Boston Corp. (jointly). Bids—To be received up to 11:30
a.m. (EDT) on June 11.
Denver
C. Allyn & Co.
construction.
new
$50,000,000
25-year
debentures
year, viz.: $25,000,000 in June and $25,000,000 in the
this
Webster
icommon
Power Co.
if
amount
and A.
★ Gulf States Utilities Co.
March 4 it was reported company plans to raise ap¬
proximately $7,000,000 through the sale of additional
$8,000,000 of cumulative preferred stock.
announced company
Pierce, Fenner and Beane and White,
(jointly); Salomon Bros. & Hutzler and
Dillon, Union Securities & Co. (jointly); Kuhn,
Co.
Loeb & Co.
18, it was reported company plans to sell not less
than $20,000,000 of first mortgage bon'ds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; and Chas. W. Scranton & Co., New
Haven, Conn.
1 ' ■
was
Lynch,
&
Eastman
Feb.
Feb. 11 it
future to sell
near
necessary
Merrill
Underwriter—Dillon, Read & Co. Inc., New York.
Consolidated Natural Gas Co.
Sulphur Co.
Walte, Jr., announced company plans
Nov. 28, E. E. Trefethen, Jr., Executive Vice-President,
stated that it is anticipated that a portion of the funds
4 it was reported company plans to issue and
$16,000,000 first mortgage bonds late in June. Pro¬
ceeds—To repay bank loans and I for construction pro¬
gram^
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
reported that company plans to issue and
Connecticut Light &
Lake
March
Columbus & Southern Ohio Electric Co.
sell in the Fall
April
sell
finance
which is expected to cost
approximately $87,000,000, which will also be financed,
in part, through the offering of
1,675,415 shares of com¬
mon stock
to stockholders (see above).
Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.;
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly).
was
in the
tures.
Underwriters—Johnston, Lemon & Co.,
Gulf States Utilities Co.
its 1957 construction program,
Feb. 21 it
1967.
will vote
"
Washington, D. C.
System,
stockholders
announced
was
on
Deo. 27, Eugene H.
Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Morgan
White,
it
approving the creation of a new issue of 50,000
shares of preferred stock
(par $100). Underwriter —
Smith, Barney & Co., New York.
the company is planning is¬
$15,500,000 first mortgage bonds. Pro¬
bank loans and for new construction.
To repay
—
Power & Light Co.-
March 8
announced
was
and sale of
Beane
Bros.
mon
Probable
&
Weld & Co.
i
Probable bidders: Merrill Lynch, Pierce, Fen¬
and White, Weld & Co. (jointly); Salo¬
Hutzler; Harriman Ripley & Co. Inc.; Glorer
Forgan & Co.; Blyth & Co., Inc.; Lehman Brothers.
&
ner
plan to
a
1957.
Proceeds—To repay bank loans
tion program.
&
He added that close to
was
$25,000,000
Tire
4, M. G. O'Neil, Executive Assistant to the Presi¬
dent, said the management was working on
revamp
the capital structure and that the
$4,200,000 of equipment trust cer¬
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros.
1957.
that
reported
was
41
(1373)
sale
the
of
first
$19,000,000
Underwriter
1987.
—
To
be
now
mortgage
determined
llalsey,
considering
bonds
due
by
competi¬
bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—Not expected to be received until sometime
in April or May, 1957.
tive
Probable
bidding.
Michigan Consolidated Gas Co.
4 it was reported company plans to issue and
sell between $25,000,000 and $30,000,000 of first mort¬
March
bonds before Summer.
gage
Proceeds—To repay bank
program.
Underwriter—To
competitive bidding. Probable bid¬
ders. Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Blyth & Co., Inc. (jointly); White, Weld & Co. and
Lehman Brothers (jointly).
loans
construction
for
and
determined
be
by
Minneapolis & St. Louis Ry.
(4/23)
Bids will be received by the company up
to noon (CST)
for the purchase from it of $2,700,000 equip¬
ment trust certificates, series A dated
May 10, 1957,
to mature annually in l-to-15 years. Probable bidders:
April
23
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler.
t
(3/25)
RR.
Monon
the company at Room 1400,
Chicago 5, 111., up to noon (CST)
on March 25 for the purchase from it of $1,050,000 equip¬
ment trust certificates to be dated Nov. 15, 1956 and toBids
will
received
be
by
608 So. Dearborn Street,
mature
in
1957
and
to
Halsey,
Salomon
15
equal
annual
including Nov.
Stuart
&
Bros.
&
Co.
instalments from Nov. 15,
1972. Probable bidders:
15,
Inc.; Blair
& Co. Incorporated;
Hutzler.
★ Montana-Dakota Utilities Co.
March 14 it was reported company
sell
plans to issue and
of first mortgage bonds or convertible
before June 30, 1957.
Underwriter—To be
$10,000,000
debentures
Continued
on
vaae
42
42
The Commercial and Financial Chronicle
(1374)
Continued jrom page 41
Co. Inc.; Morgan Stanley & Co.; The First Boston
determined
T.f
*
to
Eastman
by competitive
bidding.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly); Blair & Co., Incorporated.
—
National Fuel Gas Co.
Jan. 10 it
000 of
investments in securities of subsidiaries.
writer
To
—
be
Halsey, Stuart & Co. Inc.; Morgan Stanley
Corp.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
(EST) on May 28. Registration—Planned for April 18.
March
to
Telefilm
it
4
Associates,
announced
was
Proceeds—For
plans to issue
short-term
of
plans to offer to its
189,844 additional shares
over
up
debt,
New England Electric System
Jan. 3, 1956, it was announced company plans to merge
Pennsylvania Electric Co.
Sept. 12 it was announced company plans to issue and
sell $6,000,000 of first mortgage bonds.
Underwriter—
To be
determined by competitive
bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
fits
Fenner
working capital and ether corporate purposes. Under¬
writer—May be Charles Plohn & Co., New York.
subsidiaries, Essex County Electric Co., Lowell Elec¬
a $20,000,000 first mortgage
by the resultant company, to be known as
Marrimack-Essex Electric Co.
Underwriter—May be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company;
Co.
Salomon Bros.
&
Hutzler,
Eastman
Dillon,
Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
eaoh 20 shares held.
bond
issue
Philadelphia Electric Co.
Feb.
.000,000 .of 29-year debentures due June 1, 1986.
bonds.
gage
be
to
received
Southern
Jan, 21
share for
For construction
pro¬
June
oh
18.
Registration—Planned
for
it
California
Gas
announced
Co.
plans to issue and
al&yjt $35,000,000 of first mortgage bonds.- Proceeds
sell
—To
was
bank
#epay
derwriter—To
company
loans and
be
for
construction
new
Un¬
•
determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth &
•Co., Inc. and Merrill Lynch, Pierce, Fenner/& Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly).' Offering—Expected in August
or
September, 1957.;
"v-"J :;V
bidders:
Southern Ry.
v- \'
(3/21/*•-///.//¥/•/;• /'/V./,-> w.>V
Bids will be received by the company up to noon (EST)
on
March 21
for the purchase from it of $5,540,600!
;./v.'-JL. -■■■.'v..';
Feb. 14 it was also announced company plans to issue
and sell in the second half of 1957 additional first mort¬
New Jersey Power & Light Co.
Sept 12 it was announced company plans to issue and
sell $5,000,000 of first mortgage bonds.
Underwriter—
competitive
—
Drexel & Co., Philadelphia,
Philadelphia Electric Co.
V
by
—
Pa., and Morgan Stanley & Co., New, York, N. Y.Vv
Offering—Expected in first half of 1957.
determined
Proceeds
Proceeds
Jitter part of May.
Probable
company plans to offer about
stock to its stockholders about
common
Dealer-Managers
gram.
"
be
announced
was
'•/•
the middle of the year on a basis of one new
Securities Corp.; Merrill Lynch, Pie.ce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
To
it
14
600,000 shares of
Telephone & Telegraph Co. (6/18)
tne issue and sale of-$70/-
—For Construction program. Underwriter—To be deter/ minedlby, competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expected
Beane, Eastman Dillon, Union Securities &
White, Weld & Co. (jointly); Equitable Securi¬
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.; Kuhn, Loeb & Co.
"'/• f ■'
This would be followed by
equipment trust certificates, series WW, due semi-an-j
nually to Jan. 15, 1967v Probable-bidders: Halsey, Stuart
Co. Inc.; Salomon
^Bros.^
*4.
j
Proceeds—For expansion program. Under
writer—To be determined by competitive bidding. Prob
abje bidders: Halsey,
Stuart & Co, Iri'c,; White,/Weld v.Standard Pressed Steel Co;; (4/17) >
Co.; The First Boston Corp.; Morgan Stanley & Co. and * March 15 it was reported company plans to- issue and!
Drexel & Co. (jointly).
sell 190,000 shares of common stock./ Proceeds—For ex- ;
pansion.-vUnderwrtter ^ 'Kidder-,: Peabody & Co.,- New!
Portland Gas & Coke Co.
v *
\
!"*"
pan siuiun-yitacr writer.lYiuaer,: reauuuy oc yu., new
bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers and
Salomon Bros! & Hutzler (jointly);
Eastman Dillon, Union Securities & Co. and
White, Weld
& Co. (jointly);/Equitable Securities Corp.; The First
Boston Corp.; Merrill lynch. Pierce. Fenner & Beane.
;
Southern Bell
Co. and
ties
*
.
Feb. 25u directors authorized
&
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company.
...
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Go. Bids—Ndt ex¬
pected to be received until next Fall. - ' >:
•
—:
announced company
not
^
.
•determined
Co.
Proceeds—Together with funds from
proposed bond sale, to finance new construction. Under¬
writers—Morgan Stanley & Co. and Coggeshail & Hicks,
both of New York City.
stock¬
Curtis,
14 it was reported company plans to issue and sell
$10,00(1,000 of first mortgage bonds. Underwriter—To be
:
,
\
York.'
Jan.
stock.
of common
debentures in the near
or
reduction
J
Telephone Co.
was
stockholders
common
Inc.
company
$8,000,000 convertible notes
future.
Peninsular
March 6 it
&
New
and
South Carolina Electric & Gas Co..
by American Tele¬
phone & Telegraph Co. Underwriter—For any bonds, to
be determined by competitive bidding. Probable bidders:
Boston
National
part, by debt borrowings and stock issues.
About 90% of Pacific's stock is owned
Under¬
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Probable bidders:
Boston
stock, of which 50,000 shares will be
common
sold for company's account and balance for selling
holders. Underwriter—Paine, Webber, Jackson &
14,
be financed in
25-year debentures. Proceeds—To make addi-
new
shares of
§,157,000,000 in 1958 for expansion and improvement to
(5/28)
Thursday, March 21, 1957
.
★ Roxbury Carpet Co. (4/16-17)
March 18 it ^was reported company expects to register
about March 27 or March 28 a total of 175,000 to 200,000
.
Telephone & Telegraph Co.
James S. Cantlen, Vice-President," announced
that company plans to spent $159,000,000 in 1957 and
1
tionai
Corp.;
Bids—Expected
Pacific
Jan.
reported company plans to issue $15,000,-
was
Dillon, Union Securities & Co.
around April 23.
*
received
be
.
.
<
-
Feb.
1
first
to
reported
plans offering,; probably /
*//;• >
*$£S*
Additional rCommoiY/;i"-/>;i$iihdstrand Machine Tool 'C©;¥
v •
^
Underwriting—lVIav bp on a nego
..iv/To r#>h 11 it wac reported
-May be on a ntrtzoMarch 11 it was rPKinrtpri'/>rtmhanv may Ho-snmp pnuitv
'company mnv do some equity
financing in April (first to stockholders). Underwriters—
Merrill Lynch, Pierce, Fenner & Beane aild Dean1 Witter
k Portland General Electric Co.
was
company
stockholders,/- of
common
stock later this year.
tiated basis.
New York State Electric & Gas Corp.
was announced
company plans to sell in 1957
$25,000,000 of first mortgage bonds, and an additional
$20,000,000 in 1958
Oct. 24 it
Underwriter
bidding. Probable
program.
tive
-
*
Inc.; Kuhn, Loeb
Barney & Co. (jointly); The First Boston Corp. and
Glore, Forgan & Co. (jointly); Harriman Ripley & Co. *
Inc.; Kidder, Peabody & Co;4and. Salomon 'Bros.: &
)dy
Hutzler (jointly).
<
^ New
-
York Telephone Co.
March 18 it
announced
was
company
—Scheduled to be received
on
Norfolk & Western Ry.
are
expected
to
be
&
certificates.
1
(4/10)
bidders:
Halsey, Stuart
•
To repay
about
company
plans to issue
Business
some
and preferred stock this
year.
Proceeds—
bank loans ($18,750,000 at Dec. 31, 1956). Un¬
derwriter
Blyth & Co., Inc., New York and San
in
—
Francisco.
Northern Ontario Natural Gas
some
was
notes and
stock in units.
common
head group in United States.
bank
Proceeds—About
Northern
in
States
Offering—Expected in
it
4
was
reported
(Minn.)
company plans to
and
Feb.. 11
jJTProbable bidders:
*
SK KiAte?^■ppah/^T1nLynC^,Sle/ce' Fenner
iiofntlvW
Co
3y)
•
The
First' Boston
(jointly);
.
j3/1-?
MW
CoVn
-
Harriman Ripley & Co. Inc.
Nerthern
*
March
4
States
Power
'
Co.
(Wis.)
it
construction
program.
construction.
new
(6/4)
it
to
noon
was
and
Pro¬
be
.
-
4
,
.
[.
poses.
v-
BeM Telephone
i?
Co.
(jointly). Bids-/
L?ii «nnnf^fnSrtaToonCed company intends to issue and
^11 $30,000,000 d 32-year debentures due May 1 1989
Proceeds
To
retire
Mon
program.
petitive
short-term loans and for cpnstruc-
Underwriter—To be determined bv com¬
bidding, probable bidders:
Halsey, Stuart &
preferred stock
of its ,$140,000,1)00 4957 construction
program.Underwriter — For preferred-" stock — White,
We^^j Co. and Stone & Webster Securities Corp. Bonds
part-of. the. cost
•
•
were
it'
was
some
Co.
Inc.;
bidding. Probable bidders:
The First Boston Corp.
Halsey,
Reading Co.
Stuart
(5/23)
/
.
/
are
expected to be received by this company ©n
May 23 for the purchase from it of $2,475,000 equipment
trust certificates, due
semi-annually* from July 1. 1057,
to Jan.
1, 1972, inclusive.
Probable bidders:
Halsey,
Bids
Stuart
& Co.
Inc.; Salomon Bros. & Hutzler.
.
.
.
"/
'
.
announced
company
plans
to
offer
1969 and
stock, of which 100,000 shares
6% convertible debentures due
350*000 shares of common
are * to ?be
marketed for
competitive
\
placed privately.
United Artists Corp.v* 44/15-19)
Marbh- 20
&
(4/23)
reported that .company plans to sell some
and bonds in-order to raise
was
additional
publicly
body & Co and White, Weld & Co.
Expected to be received on June 4.
;
-
Transcontinental Gas Pipe Line Corp. / /V>/ '//•'/-
Jan. 8 it
previously
bidders-
;
corporation is considering public j
(inancipg^ but details have not as yet been determined.
Financial Advise#*—Salomon Bros. & Hutzler, New York.
'
that
-V <
Jan. 21-it Was reported
--i' *,•-•
-
stock |
stock;
Underwriters—Ernch & Co. and The Marshall Co.,
TMT Trailer Ferry, Inc.
..
,
announced
plans to issue and sell!
both of Milwaukee,- Wis.
•
-
'
-
during 1957. Price—Of preferred, $102 per share. Pro-j
ceedsLFor working capital and general corporate pur-
Indiana, Inc.-
(jointly).;.: -4 7
company
locally 10,000 additional shares of 5% preferred
and to" sell
generally some additional common
(EDT )-• on' May 20.
Pug«t Sound Power & Light Co;
Feb. 6, Frank McLaughlin,
President,
Service Co.
announced
Thorp Finance Corp.-. /
announced that it. is
Union Securities & Co.
*
Electric
was
Jan. 30 it was reported company
-
issue
Probable
repay
Underwriter—To
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co.
Inc.; GlOre,. Forgan & Co.;'Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman
Dillon,
M
1987
up
it
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro-|
(jointly); Harriman Ripley & Co. Inc. and Ston«|
& Webster Securities Corp. (jointly).
P™babl_e bid_ders: flalsey,_Stuart & Co.
Co-
Underwriter—To
determined by competitive bidding.
-
(-j°lnt"
Loeb°&
was
reported company plans to
sell $10,000,000 of first
mortgage bonds due
ceeds—For
A
p
Kuhn
mortgage bonds.* Proceeds'—To
for
Dealer-|
thers
scheduled for 1956) will be issued and sold by the comPW>y. during m Proceeds - To repay, bank loans
(amounting to $25,000,000 at Dec! 31," 1956) and for new
construction.,, Underwriter--To. he..determined by com-
o1-' Weld &
5l
ahH
Equftable Seeuri?S Corp
and
and|
in j
hill, Noyes & Co. and Drexel & Co. (jointly); The First!
Boston Corp.; Eastman Dillon, Union Securities & Co.;|
/
expected that a new
series of first mortgage bonds (about $30,000,000 initially
Underwriter—To
program.
loans
plans to issue
Halsey, Stuart & Co.. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Hemp-i
underwritten
(5/20)
| reported company plans the issue and sale
was
Public Service Co. of
$15,000,000 first mortgage bonds
construction
be
to
-
company
\
expects to sell new J
capital for its continuing!
plant expansion. Underwriter — For any bonds, to be J
determined by competitive bidding.
Probable bidders:'
of Colorado
Expected to be received
issue
Balance
V
reported
securities during 1957 to obtain
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc.
Bids—
Power Co.
the Fall of 1957
Proceeds—For
:
Texas
Jan. 2
be determined by competitive
April.
sell
issue.
"
of $30,000,000 first
—
March
of
Canada.
Oct. 8 it
Co., Ltd.
reported company plans to issue and sell
$10,500,000, together with private financing, to be used
for new construction.
Underwriters
Hemphill, Noyes
& Co. and Bear, Stearns &
Co., both of New York
to
two-thirds
was
1957 (probably first to corpmon stockholders).
Manager—Goldman, Sachs & Co., New York.
—
Public Service Co.
March 1 it
it
18
in July.
sell about 217,000 additional shares of common stock
Proceeds—For
debentures
announced
was
Electric Co.
March
expansion and working capital.
Operates shopping centers. Underwriter —
Eastman Dillon, Union Securities &
Co., New York, lor
March 6 it
Urn
Allyn & Co: Inc. (jointly); Mer¬
time
some
kr Tampa
in units of $50 of debentures and five shares of
be sold
-
biddinS-1
Pierce, Fenner & Beane.' Bids—Expected to
received
be
Co,, Jnc.;
stock.
Northern Natural Gas Co.
A. C.
Loeb & Co/-and
rill Lynch,
Principal Retail Plazas of Canada, Ltd. (Canacla)
28 it was reported that early
registration is ex¬
pected of an issue of $15,000,000 of subordinated deben¬
tures due 1982 and 1,500,000 shares common stock to
Co. Inc.; Salomon Bros. & Hutzler.
construction.
new
determined: by competitive
Probable'bidders: Halsey, Stuart & Co. Inc.; Goldman,
Sachs & Co.;, Stone & Webster Securities Corp.;'Kuhn,/
Feb.
&
bank loans and for
repay
/derwriter-^To be
ing—Expected in May.
May 21.
received
Probable
To
was
White, Weld & Co.; Equitable Securities
Corp.; Kulfn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody & Co.;j W. C. Lang-'*
ley & Co. and The First Boston Corp. (jointly). Offer¬
by this company on
April 10 for the purchase from it of $6,600,000 equipment
trust
Edison Co.
announced company may in 4957 issue
some $14,000,000 to $15,600,000 of senior securities: Proceeds — To repay bSnk loans and for construction pro¬
gram. Underwriter—For any bonds to be determined by
competitive bidding. Probable biddersr Halsey, Stuart
(5/21)
plans to issue and
sell $70,000,000 of refunding mortgage bonds.
Proceeds
—To retire short-term borrowings. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.:/Bids
Bids
Potomac
Dec. 27 it
account
of
the
management
Proceeds—To retire certain debt and to increase
working capital to finance expanding independent film
production. Underwriter—F. Eberstadt & Co., New York.
group.
^
United
Feb.': 22 tt
its
Illuminating Coi
was
common
common
stock
/eightSferes
plans to offer to
additional, shares »of
the basis of one new share for each
announced, company
stockholders
on
held.
311*557
Proceeds
—
For
new
Construction.
i
Volume
MJ.
185-Number 5622
S,
A.
Febv;25
Fund, Ltd.
it
.
The Commercial told Financial Chronicle
.
.
(Canada).
v>
•
-
reported that this. Fund
was
Feb. 15 it
,
...
.
March
it
12
sell about
Proceeds
plans to issue and
$15,000,000 of first mortgage bonds due 1987.
To repay bank loans and for construction
Underwriter—To be determined by competi¬
bidding.
The
Probable
First
Corp.
scheduled to be received
sale
of
to
Loeb«&
Co.
rities & Co.;
&
4
.
.
Bids
will
be
tificates
week's
run
offer¬
this
is
mere
a
issue market. Few regard the
new
current markdown in
on
cost, notably
-
bankers'; bills and Treasury
as a harbinger of any
due
.
aggregations; be¬
underwriting capital
the
garded
to
level
is
Gas
indicating
off
on
offering
a
show
these
company * a price of 100.6199 for
4%%
and planned
coupon
publicly
101.372
at
to
for
an
indicated yield of 4.52%.
The
40
-
winning bid
cents
was only about
$1,000 above that of
Demand centered
per
the runners-up.
v
k»"-\
;•»
principally
savings banks,
among
pension funds and smaller insur¬
And
this holds true
in
Rene
High
Mayer, President of the
Authoritv of the European
counts and bonds.
Edison Co. of N. Y.'s recent offer¬
Coal
and
ing of
announced
privileges
such
$54,827,500
Shareholders
down
total
on
about
of
of
who had first call
took
Consolidated
as
debentures.
the
company,
this offering,
on
than
more
96% of the
subscriptions, leaving only
million
$1.7
not
taken
on
"rights."
.
! It
to
the
that
holders who failed to
their
ity
has
and
subscriptions
thing around $150,000.
While
several
take
to
ran
loss
up
has
the
Securities
a
reg¬
statement
covering
a
proposed public offering of $25,000,000
of
Secured
Bonds
due
1.975, and $10,000,000 of Serial Se¬
Notes
offering
uled' to
1960-1962.
due
will
financing
the
debt
with
Exchange Commission
some¬
substantial
Community,
that the High Author¬
filed
.
/
Steel
istration
cured
calculated
was
the
be
the
by
United
be
of
investment
is
and
made
will
public
Community
States
be
first
The
April
on
underwritten
by
in
sched¬
9.
a
It
group
banking
firms
offerings reached market during
the
week, * the ; outpouring
of
equities, as a means of raising new
capital, continued to dominate the
First
Boston Corporation and La¬
zard
Freres & Cos The High Au¬
corporate field. Among the largest
thority
of
or
the
latter
150,000
was
shares
United
States
secondary
a
of
common
Borax
of
Chemical
&
Corp sold for stockholders.
.When
bids
Appalachian
Co.
on
Electric
got around to opening
its
$29
million
first
of
30 - year
bonds
this
week, it found bankers thinking
pretty much in similar terms as
mortgage,
regarded
their
tenders
headed by Kuhn, Loeb &
for
the
issue.
may,
part
any
borrow
on
group
paid
the
price of 100.58 for the
company a
sovereign
steel
levy
tion
sectors
appeared
be. attracting
to
good
buyer interest.
The
.
was
helped
of
by the closeness of banking
bids. The second group fixing the
same
coupon
bonds
on
cents
per
a
bid
$100
rate,
that
or
sought -the
only 10
was
$1
per
$1,000
below the winner. Even the lowest
of
per
power
economies,
to
impose
Community, the first
European
a
rather
crude steel and
the
the
from
coal
Its
and
is
member
and
/maintain
market
old
with the rest of the salesmen, was
to
a
most
elaborate
of
steel
year
the
pro¬
the
249,000,000 metric
coal
or
easel
an
be
used
to
(they
thought)
salesman
for
they
$100
a
sale. He discov¬
a
people how they could make a
profit if they followed the advice
of
the
that
service
LOSS
WHEN
PEOPLE
OF
THEY
EX¬
WERE
the
thing
respectively, in the United States.
back, got his hundred
and
began
talk
to
nine
and the
is the executive
branch of the Community and is
purposes
High Authority is respon¬
financing
sible for facilitating the
of
enterprises designed
improve productivity and in¬
crease production.
It also is em¬
powered
to
borrow funds
and
make loans to the enterprises for
to
purposes.
The
ing
e
q u
High Authority's outstand¬
obligations
amount
to
the
i v a lent
of
approximately
These
borrowed
$129,000,000.
$100,000,000
Bank
on
United
States
comprise
in
1954
Govern¬
the
Export-Import
3%% secured notes due
1979; and the equivalent of about
4 Vi % secured notes
public subscription in
Switzerland in July 1956 and $17,-
offered
OF
on
such
iron
or
mar¬
ket is already a reality aRd there
the
which
loans
Bank
holds,
made
as
for
depositary,
the
by the High Author¬
ity to the enterprises.
about
say
in
the
can
than
ammu¬
help.
a
handicap
a
retired
«
do
We
so.
people do for
take
man"
for
things
,
*
time
more
have
to
*
The
man
elated
over
worried
when
slow is in
things
even
*
If
becomes
needs correction.
*
Most
*
\
*
*
people have
strong, ac¬
a
quisitive nature.
They buy invest¬
to satisfy this need, and to
try and obtain a feeling of secu¬
rity. Fear is a strong motivator—•
so is greed.
ments
*
*
Don't
them
let
*
-•
want
who
value
of
after they have
go
don't
the
have
cash
a
stamina. to
when prudence
even
Put them
policy.
tion—some "sure thing" salesman
is
come
liable to lose
and
along, and you
customer, and
a
the customers may
fits
lose the bene¬
temporary cash position
your
lators to
—fear
causes
to
them
are
them.
regret
have
victo¬
of time
mistakes
your
plenty
when
it
when
*
about
brag
ries—you'll
sell
falling.
*
Never
to
for
gained
most amateur specu¬
buy when stocks are high
.the markets
your
catch up with you.
on
Intelligent
constructive
brings
Head
both
*
effort
1
*
sales
directed
into
interviews
business—not hard work.
work and
hard work are
indispensable to success.
❖
Joins La Montagne
(Special to The Financial
still be as good
that pays 3% and does not
increase
or
decrease
in value.
PALO ALTO,
one
stable dollar this
Even
with
true.
(Who said stable dollar?)
a
likely to
are
investment that pays 6% per
can
depreciate over 30%.
years
have
cash posi¬
a
*
goes
value.
*
;
customers sell
into cash. Many of
your
indicates such
annum
ten
business
causes
you
the
over-
emotional state that
an
*
*
washing
*
An
becomes
big sale today and
a
Cijeed
customers
shown
its
Spend
*
who
"old
acquired them.
lost
»
hunting prospects that
Wives
the
everything for
granted that comes to them—they
Brain
*
*
qualified.
are
people take
be
the
with
do
people.
have
good investment you
it
to
their attention.
Most
good
will
you
Go where the business is.
would
a
call
must
take
also
granted.
have made
make
for
from
radiation
the
they do for us.
children
and
take
appreci¬
you
for granted. We
granted, also
us
wives
our
the things
DOWN
business
to do so—but beware
investment unless
them
rather
*
Many people will not
an
The less
AND
into short-term bonds if you
♦
ate
bonds.
UP
business
stay in
be
nition
selling
the
and
the people who
savings accounts
investment
stocks and
has
Authority's borrowings
are made pursuant to and equally
secured by an Act of Pledge en¬
tered into by the High Authority
to
in
government
you
for
High
securities
interest
money
benefits, such as safety,
protection of capital (not
the
free
little
have
and
powerful
a
for
profits) and he did business. Talk
profit, and people think of loss.
capital investment programs of
such
IDEA
THE
He
income
Market fluctuations are of
Sometimes elaborate sales
the
of the Community.
The
out
TO
PROFIT.
The High Authority, consisting of
carrying
Funds.
IM¬
THOUGHT
MEDIATELY
turned
members,
have
you
argument
much time,
into it. It was
that since the charts showed
ered
their
increase
put
expense
each
and
The producers of
masterpiece
and didn't make
as
The common
could
POSED
with
can
deposit when they took it out into
International
in
that
which compared with
production of 104,300,000 metric
tons and 483,500,000 metric tons,
charged
they
the territory to show to prospects.
Settlements in Basle, Switzerland,
deal
charts
on
asked
market.
not
of
valuable
so
competitive conditions within that
steel products.
into
introduced
in
as
called
was
Luxembourg and the Saar. All of
a-single,
Community
investment
an
servicd
the main office in New York and,
with
The
friend of mine
the
within
with
selling
y/as
the majority of people, that
tal
S|S
#
years ago a
advisory
If you can con¬
vince
without fear of loss of their capi¬
sour-doughs.
000,000 borrowed on secured notes
from banks in Belgium, Germany,
for coal and steel
interference
a
to
en¬
is
national customs duties
other
Maybe
all the
time.
Money depreciates in buy¬
ing power and people think prices
have
gone up.
but their money
countries
steel
responsibility
member/countries
free from
separate
one
tons of coal,
$12,000,000
Community
is
last
and
areas
through
of
salesmen!
My friend tried it for two weeks
enterprises
in
the
Community
produced 57,000,000 metric tons of
ment
common
and
ducing
the
both
create
six
does
four-bids ;was
only $2.30
$1,000 under the best.'*
Steel
in the coal and
their
of
Community
world's major coal and
from
terprises.
-situation
and
national tax.
The
and
The
•
coke,
coal,
steel.
ore, scrap or
a
the
in
than
from
iron,
for
frontiers
the coal and steel produc¬
on
a
railroad
coal and steel
Coal
powers
example
101.22 for an indicated yield
of
4.55%. And at this level the issue
Notes,
Community,, was
established in
1952 by a Treaty entered into by
Belgium, France, the Federal Re¬
public of Gesrrianv, Italy. Luxem¬
bourg and the Netherlands. By the
Treaty,
the; member
countries
ceded to th«> Community certain
bonds
specifying a 4%% coupon.
reoffering price was fixed at
Serial
the
European
The
course
of
like£amount from banks
a
Com¬
the
munity any national customs
frontiers,
currency
frontiers or
in lieu of selling all
including the
The; successful
Co., The
comparable terms.
The
Bidding Is Close
Power
other
effort, and
within
People who are retired invest
primarily because they seek safety
their capital—hence
the bil¬
lions in low paying savings ac¬
with
few of these philosophic gems will
be of help to you neophytes and
this
longer
no
are
picked
of
sell this service.
case
of debt issues carrying conversion
thoughts
up from here and there during a
long time selling securities to lots
of different people—and
talking
placed
Lazard Freres & Co. group.
the
random
more
public offering of Community's securities in this country
be underwritten by Kuhn, Loeb & Co., First Boston Corp.,
to
>
"People Are Funny That Way!"
Some
companies.
ance
First
moving out decidedly well to
delphia, Pa.
a
re-
series
investors.
(S. S.)
it was reported
11
By JOHN DUTTON
$35,000,000 Bends and Notes With SEC
have
plans to issue some
securities, probably about $20,000,000
Dental Manufacturing Co.
company is considering some
long-term financing. Underwriter—Drexel & Co., Phila¬
bidders paid the
European Coal and Steel Commwity Registers
on
Bids—Ex¬
announced company
senior
investors.
The successful
Many
somewhere
Corp.
Securities Salesman's Corner
Corp.
good pre¬
the part of
who
re¬
Meantime, reports
area.
recent
been
probably
as
tendency
in this
development
Boston
May 22.
Public
new
&
general cutback in interest rates.
the
White
March
Sl!
required to handle it.
First
on
in Demand
inquiry
institutional
op¬ ; offer
into.two distinct
Peg's
short-terms
But
cer¬
annually from
bond issue had aroused
year.
of the
and
Probable bidders: Halsey, Stuart
that/
liminary
erating companies and to take up
stock being issued by such units.
cause
1957
Service " Electric
It will put the big communica¬
tions company in funds ;to meet
As usual it appears that bidding
temporary adjustment, evidence
of sljght easing in parts of.-the for this business will divide the
' banking
money market is-welcomed in the investment
fraternity
The
Reports from dealer circles in¬
dicated
1
requirements of its affiliated
&
■I
New
graph Co.'s impending offering of
$250 million of 28-year debentures
largest undertaking to reach the
market
Apirl 4 for
on
Inc.; Salomon Bros. & Hutzler; Baxter & Co.; R.
W. Pressprich & Co.
new
Stone
Halsey, Stuart & Co. Inc,; Eastman Dillon, Union Secu¬
& Co.; Kidder, Peabody & Co. and
White, Weld
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Offering—Expected sometime in July.
& Co.
of;
and
rities
15,
1958 to 1972, inclusive.
Beane
be determined by competitive bidding. Probable bidders:
,
by this company
April
&
of first mortgage bonds due 1987. Proceeds — To
repay
bank loans and for new construction. Underwriter — To
(4/4)
received
dated
ings will be dominated, of course,
by American Telephone & Tele¬
it
.
Co.;
was
additional
Hutzler; Eastman Dillon, Union Secu¬
^
.
Fenner
West Penn Power Co.
(jointly);
Stone & Webster Securities Corp.; White,
Co.
Big ATT Issue Due
•
Next
not
Corp.
&
to be received
Dec. 27 it
Securities
Pierce,
Securities Corp.
Securities
pected
Probable bidders
.the purchase from it of $1,200,000 equipment trust
Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner &, Beane(jointly); Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1,
or
&
Lynch,
(jointly); Kidder, Peabody &
Co.; Equitable Securities Corp.; Eastman Dillon. Union
Spring $22,000,000 through the
stock, plans-also to sell in
American
Co.
Merrill
include: Halsey, Stuart & Co. Inc.; Kuhn,
'★Virginian Ry.
the public 400,000 shares of common stock. Under¬
writer—To be determined by competitive bidding. Prob¬
Whether
this
be determined by competitive
Halsey, Stuart & Co. Inc.;
Incorporated and Baxter & Co. (jointly);
Probable bidders:
&
Webster
■
able bidders:
,
bidding.
common
and
Salomon Bros.
also announced company plans'to offer
was
Underwriter—To
gram.
on
addition to pro¬
company, in
$20,000,000 of debt securities.
for bonds may
-Weld
March 12 it
late
additional
the Fall
1.
(10/1)
announced
was
raise
to
posal
-
and
Oct.
on
jf Utah Power & Light Co.
Bids—Tentatively expected
Virginia Electric & Power Co.
bidders:
Boston
Probable bid¬
Merrill Lynch,
Blair
March 8 it
Halsey, Stuart & Co.
Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co.
(joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder,- Peabody & Co; Bids — Tentatively
Inc.;
12, Everett J. Boothby, President, announced thafr
the company expects to raise about $8,000,000 through
the sale of first mortgage bonds in the Spring of 1957.
Proceeds—To repay bank loans and for construction pro¬
June 4.
—
program.
tive
Pierce, Fenner & Beane.
(5/22)
Dec.
was
To be determined by competitive
bidding.
ders: Stone & Webster Securities
Corp.;
.
(10/1)
announced company
was
Washington Gas Light Co.
-
reported company plans to issue and sell
1,000,000 shares of common stock (par $8). Proceeds—
About $22,000,000 for new construction. Underwriters—
$15,000,000 of capital stock. Underwriter—Kidder, Peabody & Co., New York. Offering — Expected in early
Spring.
1
V
if Utah Power & Light Co.
Virginia Electric & Power Co. (6/4)
v
^
plans to offer
(1375) -43
is
S. Baird is now
&
Co.,
Center.
71
Chronicle)
Calif. — Peter P.
with La Montaghe
Stanford
Shopping
44
The Commercial awl Finn
(1376)
Canadian Eroiionit to
Fund Casli-iiis
Mutual Funds
Decline in-Feb.
in
vestors
the
in
February to $33,280,000
the
from
January figure of $37,-
261.000, it ,was reported. Redemp¬
tions in February a year ago to¬
taled
$39,337,000.
Assets
the
at
of
end
February
stood at
$8,838,303,000, down from
the January total of $9,060,437,000, reflecting the over-all decline
in security prices for the month.
The
figure compares
with
the
February 1956 total of $8,059,297,-
next
considerable period
months," in the opinion of a well-known Wall Street economist.
The rate of advance of the economy will be,.slowed,^however, he
cautioned, by unfavorable factors now present, and these factors
may already be having this effect.
High business activity is probable "over
a
of
"Business may
remain Active, so far as present evidence goes,
possibly for a good part of 1057," Dr. Joseph B. Hubbard, Econ¬
omist, Union Service Corporation, reported to Tri-Continental
Corporation, the nation's largest diversified closed-end investment
company, and three associated mutual funds, Broad Street Invest¬
ing Corporation; National Investors Corporation and Whitehall
v
Fund.
'■ *
-;
of
shares
by
inves¬
sum," Dr. Hubbard noted, "the national ecopomy remains
high income, high expenditures and large production. The
almost unbroken rise in incomes and consumption has strength¬
-during
February
totaled
$105,773,000, exceeding the $100
million mark for the 15th
tive
month.
January
This
1957
consecu¬
with
compares
purchases of $149,-
911,000 and $117,756,000 for Feb¬
plans
the
17,109
during
continuing
accum¬
the
month
purchase
of
mutual funds at
regular intervals.
This
below the Janu¬
figure
was
record-high
ary
of
18,862
plans
opened and higher than the
1956, total
ruary,
association
480,000
confidence
of
Feb¬
12,648.
estimates
The
that
accumulation
over
plans
are
securities
obligations
stood
at the end
with
and
of
at
end of
and
for
the
$491,895,000
February
month
at
a year ago.
the
the
at
compared
end
of
with 5.7%
February,
for January,
The National- Association of In¬
Companies
136 open-end
ies
represents
investment
compan¬
(mutual funds) and 25 closed-
end
investment
combined
$10
with
companies
assets of
evidence,
the other hand, of further
on
has
been
approximately
billion.
the
i
,
is presented hi trv*
|i
T
development
years
c»v*r
the commodity price situation,
pacts from the softness
appear,
delayed im¬
some
in residential building are beginning to
and certain industries are encountering difficulty in main¬
production
taining
growing
tendency
and
capacity,
productive
also
is
a
in
remairi large
in
to
growing evidence," the economist said, "that, in the
relationships of costs—prices—profits, the tensions long recognized
playing
part in the business cycle are developing."
a
is
There
potential instability in the economic situation, Dr.
Hubbard added, and "it is now more necessary
cant
than for
a
number
appraise signs of weakness which may become signifi¬
of years to
the
findings
mission
of
Economic
investment
an
point
Gross
National
Product
which
of
also
It
cast.
mentions
the
that
New Booklet
A
in
booklet
for
bankers that gives facts about in¬
vestment
companies
and
their
common
trust
20-page
new
interest with
companies is
banks
and
off the
press/' "It "'is" titled'""Investment
Company Shares — An Aid to
now
Bankers and Trust Officers."
Prepared
in
consultation
his
role
in
and
loan
as
leading bank officers, the booklet
explains how investment company
the banker
advissr
accounts
and
collateral.
will
be
made
to
bankers
and
trust
officers
by
brokers, securities dealers and in¬
vestment
tives.
from
representa¬
company
Copies
may
be
obtained
charge by bankers directly
the
National
Association
Investment
way,
of
Companies, 61 Broad¬
New York 6, N. Y.
A MUTUAL
Mottin &and
Massachusetts Investors
Growth Stock Fund
A
Mtfj"sachusetts Investors r. frust
WRITE FOR
FREE INFORMATION
FOLDER AND PROSPECTUS TO
Century Si lares Trust
YOUR INVESTMENT DEALER OR
NATIONAL SECURITIES &
h-ettg
M
<
t i#
1
#»«.*«? raw/- m*
»mh m
tAirwiabww*
c*»uit oiled
morttv
ml
t
%
rrt.Asr*
p.
If*
Im+rtmeitt*
estimated
that
that
at
annual
an
at the end
In
of
in
1950.
of
$30
rate
being
bit liou
of the year.
discussion
any
al#»wt
Ca nan tan
1950,
rapidly
rose
be
tr«e
rat****!
C anada
t
to about
is
It»
r
$11
*
enp.y
term
*
of the
future
it
Ml
*
i«rfi«e*hI# tfegt
rapitai tmnLnost,
national product, "I*er*i«ec-
trend
of
Canada*
tive" says, one must not lose si ;ht
of the
important role that foret .o*
plays in the overall Canadian economy and the increasing
importance of the United States
This rex
25
sew
in Canada's
1938,
foreign trade picture
instance, the United
for
States took about 32%
of Canada
merchandise
whercas
1955
it
exports,
took
about
bO%.
from
rose
63%
Canada's forest
are
of
and
very
the
tahlidKed
of
will
the
total
her
It
I Maw
product
on
some
be
that
relative
decline
dependence of
Canadian
U, S.
the
supplies
of
oi
lliere
ami
but it is
expected that lumber exports will gain a somewhat larg*r
U.
S.
of
the
is
market.
Canadian
prinhn«
minim*
TW
t
sbai't
■»
|
K
t
1
a.
n
1
-o
Tl
p. 4
t
O«'
I.;
t
'
x*.
in
newsprint,
in*
I
i*
d.
T he
mining
future
bright—world demand should he
strong, particularly
from the
United States, and Canada should
be a major supplier.
It i# estimated, the publication say*, 'that
the total value of the industry *
times
1980 may be jdwut
present
levels,
com-
pared with an increase in GNI* id
about three times.
Export* may
r
re
eye**
*
i
v
t
■
mxe-itn ••
^
Ui
*
t
V* "
!■#»*.
ATOMIC SCIENCE
OF
through
MUTUAL
"trmnf #**•.,« it*
fthle
*4
*** attrawt'o roirrt
Mr, S*.'Imm went
as
mtum*
I
BOSTON
relating to the shares of any of these separate
be obtained from authorized dealers or
prosp®ctu*
VANCE, SANDERS & COMPANY
•FUND, INC.
111
DEVONSHIRE
STREET
GET THE fACTS AND FREE PROSPECTUS
BOSTON
Securities Co., Inc.
,I033 THIRTIETH STREET, N. W., WASHINGTON 7, 0. C.
Tel.
FEder&l
3-1000
NFW
6i
YORK
Broadway
LOS
CHjICAOO
Iio
South LaSalle Street
no
ANGRT.FS
West Seventh Street
»
v,
ftcUwat*
It »
large as the I'W **w*U-<it**% I t
figure."
pifwl ***• rove* I
Large-scale expansion of the *!m k*. pc*
rvvl*
petroleum and natural ga* indti#* whatever
tries is anticipated, the putdwa* mrnl it
I* k*
tion points out, and
in Ixith of i*tir.g rruwket stw# 11
be four times
investment funds may
DEVELOPMENT
a
c
* ihxnrt
clemfet *4 jpowth
tnwed
thorough
co*
A prospectus
ATOMIC
*
h> wbiaot o- «u
t*e* whwh e to
h%hr*t |*o»*»uir *•
Bond Fund
invest in
*
»,oe
LIMITED
Broadway, New York 5, N. Y.
i
t
i
e-t
^ I *
also
exported to ot»w r
"Perspective''
*ay*,
h
art*
Luiiirlird
5^
ccocoo
thought
"
%
Fmit! Now
mining in*
is
tn *t
»..#
in
duction is exported and over i*»"
of such exports are to the to ud
States. Canada also exports aiw» d
50%
ettwre
e»»-
#
particularly in the export iimMl
the publication point* out
lur
most important forest j ro iu, t i
newsprint; more than llt'V «d i
lumber.
p*s
t C*lsl
years as.**
a?wf
M-an-
important*
?
.<<
el
United
to 73%
Canadum
r
tpeffn*
while, the percentage of
imports coming front the
States
»n
rent
Canada General Fund
Establithed 1930
jm
fedli**'!
its
growth'
to
agreed that »*
gross
*
t*t»tfi»fn«r£ted pt*#m
double
GNP
would
these commodities Canada will o«»
RESEARCH CORPORATION
the efthnnl
W-
end of tinr
production by
J''l
to
in
3\'z
Nalrnaf
i,
1
!Pi*
(GNP)
"Canada's
FUND
tlf
»|W
Iart ween If li
countries,
INVESTMENT
<
un
t#
of
1975
»•
v#
*
the President of the United States,
that the U. S. eeotumnv
ments
investment
trust
Distribution
free of
with
as
small
i
Ow'
Paley Report, prepared in 1952 for
estimated
dustry
Dept- C
is
25-year fore-
.The greater part of the
Atomic Development
f
or
the base year of the
*-*
.
I
it *,
>
II
roughly three time* thai
the $26.8 billion figure for 1355.
1980,
t
4
I
r
<
5.
1
H
*
view, the publication points out,
the
most
important forecast in
the Commission's report is that of
tion
120
#
i
i
f'Vt
$2
Prospects (Gordon CommissionK
From
v
•
4,
U\fr>°
».
irut
:;**«•*#
U
iu a
Royal Own-
the
Canada's
on
j,
-5-v»tr
k
ft
V
t'ri.O
totaling more than $*
000,000.
The current issue t
dustries
during the period of active business now ahead."
shares may be used by
'i«t
at
«
assets
In
1957."
as
T-.t
»l *-'l-
trade
estimates of investment
promise
although they
There
volumes.
employment
question early
to
ff
i
tM*
published by Calvin Hillock, Ltd.
managers of
mutual funds nifft
share of the
StccA SetirJj
pet
able
developing in
I. r
*
fu
various weak spots
unusually large.. There have been
These
1957, and 6.1% for February, 1956.
vestment
no
strengthening of the situation since the turn of the year, although
holdings represented 5.8% of total
assets
been
the return flow of funds after the relaxation of seasonal pressures
$512,176,000
February compared
$516,921,000
previous
short-term
that
has
"There is
Holdings of cash, U. S. Govern¬
ment
so
position of the individual and increased his
consumer
consumption, although shiftingNits
objectives, may continue high and support a high level of activity
in 1957, in. combination with the promised scale of capital invest¬
ment and increase in government expenditures.
in force.
now
economic
the
"There
Investors opened
ulation
of
ened
1956.
ruary,
for
one
Canada
for
expected to reach $76.1 hi 1 lam hv
:
"Hi
Purchases
25
future
March issue of •'Perspective,
Economist Forecasts Slowdown in Business Activity
000.
tors
bright
economic
By ROBERT R. RICH
•a.
company
tion of Investment Companies de¬
clined
*
A
in¬
(mutual fund)
members of the National Associa¬
vestment
Triple
In Next Twenti-Fin*
in¬
shares .by
136 open-end
of
Redemptions
b«f Ch
u
A
44
The Commercial and Financial Chronicle
(1376)
in¬
vestment company (mutual fund)
members of the National Associa¬
in
vestors
136
the
open-end
tion of Investment Companies de¬
clined
from
in
the January
261,000, it
figure of $37,reported. Redemp¬
to¬
.w;as
at
stood at
the
of
end
High business activity is probable "over a considerable period
of
months," in'the opinion of
The
a
well-known Wall Street economist.
will be, slowed, however, he
of advance of the economy
rate
these factors
cautioned, by unfavorable factors now present, and
already be having "this effect.
1 - ' "
'
may
February
$8,838,303,000, down from
the
January total of $9,060,437,000, reflecting the over-all decline
in
Canada's
the
next 25 years is presented in the
March issue of "Perspective," just
Economist Forecasts Slowdown in Business Activity
security prices for the month.
The
figure compares with the
February 1956 total of $8,059,297,000.
"Business may
remain active; so far as present evidence goes,
possibly for a good part of 1957," Dr. Joseph B. Hubbard, Econ¬
omist, Union Service Corporation,^ reported to Tri-Continental
Corporation, the nation's largest diversified closed-end investment
company, and three associated mutual funds, Broad Street Invest¬
ing Corporation; National Investors Corporation and Whitehall
Fund.;
'
sum," Dr. Hubbard noted, "the national economy remains
high income, high expenditures and large production. The
almost unbroken rise in incomes and consumption has strength¬
"Ih
Purchases
of
shares
inves¬
by
tors
during
February
totaled
$105,773,000, exceeding the $100
million mark" for the 15th
tive month.
January
This
consecu¬
with
compares
1957 purchases of $149,-
911,000 and $117,756,000 for Feb¬
plans
the
economic
the
confidence
during
continuing
accum¬
month
the
purchase
of
individual and increased his
consumption, although shifting-nts
of the
position
that
so
consumer
objectives, may continue high and support a high level of activity
in 1957, in.combination with the promised scale of capital invest¬
ment and increase in government expenditures.
"There
Investors opened 17,109
ulation
of
ened
1956.
ruary,
for
one
has
been
no
evidence,
the other hand, of further
on
been
unusually
There have
large.
various weak spots
been
the commodity price situation,
pacts from
the softness in residential building are
plans
taining
1956, total of
association
480,000
that
accumulation
in force.
now
The
12,648.
estimates
over
plans
are
ment
production
growing
tendency
and
short-term
and
as
playing
a
part in the business cycle are developing."
Hubbard added, and
of years to
$516,921,000
for
the
$491,895,000
month
the
at
a year ago.
cant
the
end
of
"it is now more necessary than for a number
appraise signs of weakness which may become signifi¬
during the period of active business now ahead."
February,
shares may be used by
New Booklet
A
new
in
20-page
booklet
for
gives facts about in¬
companies
and
their
compared with 5.7% for January,
bankers that
1957, and 6.1% for February, 1956.
vestment
The National- Association of In¬
vestment
Companies
136 open-end
ies
(mutual funds)
end
represents
investment
investment
compan¬
and 25 closed-
companies
with
combined assets of approximately
$10
billion.
trust
with
interest
common
banks
and
companies is now off the
It 'isr titled" '"Investment
press;/ ;
Company
Shares
—
An
Aid
to
his
and
role
small
in
investment
trust
National
Gross
which
Product
is
expected to reach $76.1 billion by
1980,
roughly three times that
or
of the
$26.8 billion figure for 1955,
the base year of the 25-year fore¬
also
It
cast.
mentions
that
the
accounts
will
Distribution
bankers
and
be
by
brokers, securities dealers and in¬
vestment
tives.
company
'-representa¬
Copies may be obtained
charge by bankers directly
Bankers and Trust Officers."
free of
Prepared in consultation with
leading bank officers, the booklet
explains how investment company
Investment
from
way,
the
National
Association
of
Companies, 61 Broad¬
New York 6, N. Y.
the U.
that
in
double
GNP
that
S.
economy
would
1975
of
be
about
Canadian
1950.
rapidly in
rose
annual
an
In
rate
1956,
of
discussion
any
$30
being
billion
of the
prob¬
future
gross
national product, "Perspec¬
trend
of
Canada's
tive" says, one must not lose sight
of the important role that foreign
plays in
importance
in
the overall
of
the
Canada's foreign
trade picture.
instance,
1938, for
Cana¬
increasing
United States
and the
economy
the
United
States took about 32% of Canada's
it
1955
exports,
took
about
whereas
60%.
while, the percentage of Canada's
imports coming from the United
States
from
rose
Canada's
dustries
63%
forest
are
of
States.
and
very
to
important
Canadian
the
73%.
mining in¬
Massachusetts Investors
Growth Stock Fund
NaUrniai
Stock Setieit
DMassachusetts \nvestors Trust
ramifications.
For example,
calculation
a
would
include
undistributed profits of companies
controlled
by nonresidents and
security purchases
investments.
rect
estimated
that
seg¬
50% of her total production ol
lumber;" * It ' is. thought that there
will
the
be
relative
some
dependence
Canadian
of
supplies
decline
the
of
U.
S.
in
on
newsprint,
but it is expected that lumber ex¬
ports will gain
a
the
of
somewhat larger
S. market.
Canadian
mining in¬
to other
countries,
"Perspective"
says,
"Canada's
mining
future
looks
bright—world demand should be
strong, particularly
from the
United States, and Canada should
be a major supplier.
It is esti¬
mated, the publication says, "that
the total value of the industry's
production by 1980 may be about
times
present levels,
com¬
pared with an increase in GNP of
is
about
also
three
exported
times.
be four times
as
Exports
large
foreign
Canada
well
as
as
di¬
However, it is
the
total
amount
is
to
capital
increased
invested
by
about
in
90%
enjoy
its anticipated long
growth,
it
is
generally
that it will be dependent
to a noticeable degree on foreign
capital investment," the publica¬
term
tion
as
added.
This
next
-/
review
25
in
respect
the
to
particulary
appropriate at this time, "Per¬
spective" states, "since it was 25
years ago that Calvin Bullock es¬
years
tablished
seems
office
an
formed
and
in
Montreal
its first Canadian in¬
vestment, company."
Delaware Income
Fund Now
Launched
economy,
Canada also exports about
dustry
dMonttm
such
in
Mean¬
The greater part of the produc¬
INVESTMENT
difficult," "Perspec¬
be precise about
foreign capital in¬
"to
of
agreed
able
tion
FUND
very
says,
extent
between 1945 and 1955, and at the
end of the latter year amounted
to about $13.5 billion.
If Canada'
(GNP)
Tshare of the U.
A MUTUAL
the
estimated
duction is exported and over 80%
of such exports are to the United
officers
trust
"It is
tive"
of
to
made
self-suf¬
investment
industry during 1955 was
about $450 million, and if the an¬
ticipated level of output for this
industry were to be realized by
1980,
the
investment
required
during
the
intervening 25-year
period might be of the order of
$25 billion, the publication says.
Paley Report, prepared in 1952 for
the President of the United States,
and
advisar
collateral.
loan
as
as
Total
this
vestment in Canada because of its
is that of
particularly ih the export market,
the publication points out.
The
most important forest product ij
newsprint; more than 90% of pro¬
the banker
than
more
1980.
many
ments
These
holdings represented 5.8% of total
at
instability in the economic situation, Dr.
is potential
There
in
be
in
the Commission's report
dian
promise to remain large in
although they
balance
ficient
point of
view, the publication points out,
the
most /important
forecast in
trade
a
growing evidence," the economist said, "that, in the
with
assets
also
is
relationships of costs—prices—profits, the tensions long recognized
$512,176,000
at
Economic
investment
an
merchandise
stood
February
There
volumes.
employment
main¬
1957."
at the end of February compared
end of
From
In
"There is
securities
previous and
beginning to
question early estimates of investment in
to
capacity,
productive
j
Holdings of cash, U. S. Govern¬
obligations
delayed im¬
some
and certain industries are encountering difficulty in
appear,
and higher than the Feb¬
opened
ruary,
Canada's
on
the return flow of funds after the relaxation of seasonal pressures
has
This figure" was below the Janu¬
18,862
mission
Triple
Twenty-Five Years
Prospects (Gordon Commission).
at the end of the year.
in
of
over
published by Calvin Bullock, Ltd.,
managers
of mutual funds with
assets totaling more than
$400,000,000.
The current issue cites
the findings of the Royal Com¬
strengthening of the situation since the turn of the year, although
developing
record-high
for
development
at
mutual funds at regular intervals.
ary
future
bright
economic
By ROBERT R. RICH
February to $33,280,000
tions in February a year ago
taled $39,337,000.
Assets
A
in¬
by
shares
In Next
Mutual Funds
Decline in Feb.
ot
Thursday, March 21, 1957
.
Canadian Economy to
Fund Cash-ins
Redemptions
.
.
may
the 1955
first
The
shares
public offering of its
this
launching
week
of
the
the
marks
Delaware
new
Income Fund.
This latest addition to the grow¬
ing
list
of open-end mutual in¬
companies is being na¬
tionally distributed by Delaware
Distributors, Inc./who also .spoir-
vestment
the
sor
million
$47
Delaware
Fund.
The
fund's assets
slightly
shares,
being initially offered for $9.75,
will be priced and quoted daily as
investing begins.
W.
Linton
Nelson,
President,
in
new
excess
of
are
$120,000 and
said Delaware Income Fund's pol¬
icy is to invest in quality securi¬
ties which
it feels will provide
highest possible current income.
"However," he pointed out, "the
element of growth will not be ig¬
We expect to find, through
thorough analysis," he continued,
"many securities with a ^respect¬
nored.
able
an
promise of growth
as
well
attractive current yield."
Mr. Nelson
went
on
to
as
/
describe
Delaware Income Fund's
policy as
"well-defined, yet flexible." The
fund
invest
in
WRITE FOR
figure."
new
FREE INFORMATION
Large-scale expansion
of the
petroleum and natural gas indus¬
tries is anticipated, the publica¬
tion points out, and in
both of
preferreds and bonds in
whatever proportion the manage¬
isting market and
these commodities Canada will
ditions.
FOLDER AND PROSPECTUS TO
Century Shares Trust
YOUR INVESTMENT DEALER OR
NATIONAL SECURITIES &
RESEARCH CORPORATION
ment feels
is
advisable
"Emphasis,
LIMITED
Broadway, New York 5, N. Y,
VTTe
Bond Fund
invest in
OF
ATOMIC SCIENCE
through
A prospectus
ATOMIC
DEVELOPMENT
MUTUAL
relating to the shares of any of these separate
be obtained from authorized dealers or
111
DEVONSHIRE
GET THE FACTS AND FREE PROSPECTUS
Securities Co., Inc.
W., WASHINGTON 7, 0. C.
Tel.
FEderal
3-1000
STREET
BOSTON
NEW
Atomic Development
Dept. C
Franc—
680
VANCE, SANDERS & COMPANY
FUND, INC.
,l033 THIRTIETH STREET, N.
BOSTON
investment funds may
6i
YORK
Broadway
CHICAGO
Ilo
South LaSalie Street
LOS
iio
ANOET.FS
West Seventh Street
A
Boseu
common
. r%
CK
under
economic
Canada General Fund
Established 1930
120
oil
can
stocks,
ex¬
con¬
though,"
he
vK'Mmmw mtimMMBW MaiSi
Volume
185
Number 5622
.
.
The Commercial and Financial Chronicle
.
(1377)
stated, "will be
on
quality com¬
which, in our opinion,
apprecia¬
tion potentials than fixed-income
stocks
mon
have better income and
securities."
counseling firm
of Barringer & Nelson, which has
investment
as
the
quarter, according to
with a net .asset value
as compared with
of $9.21
a
$8.63
share at
a
adviser
to
Delaware Fund since its inception
in 1937, will also furnish Dela¬
ware
Income
ment
advice
Fund
with
and
invest¬
management
told
the
close
result of this
investments
that
as
a
appreciation and the
of
shareholders',
new
closed
fund
with total
the
of
Mr. Templeton
shareholders
the
the
King Merritt Sales Conference
share
preceding quarter.
The investment
acted
closed
the report,
45
fiscal
the
period
net assets of $1,598,315.
—highest point since its organiza¬
tion last
summer.
'services, subject to the Board of
Directors'
supervision.
Officers
and
J
.
directors
of
the
fund include: D. Moreau Bar¬
new
ringer, Chairman; W. Linton Nel-'
President;, Alexander Biddle,
tson,
J. Ebert
Butterworth, W. Howard
Dilks, Jr., George S. Piper, Theoidore
Roosevelt,
III,
directors;
Lewis
J.
Ross,»' Financial
Vice-
President and Treasurer; James P.
Schellenger, Corporate Vice-Pres¬
ident- and
Secretary ; - Fyank
T.
Managed Fund
I
Assets Reach
$48 Million
Despite generally unfavorable
conditions, total shares
outstanding of Managed Funds,
market
Inc.'s
11
mutual
classes
fund
in¬
t
Sales Vice-President;
Casey,
Investment
Vice-President; Edward A. Steele,
Jr.,, Administrative.. Vice-Presi¬
dent; Charles H. Dudichum, As¬
sistant Secretary-Assistant Treas¬
Betz,
Jr.,
Warren
A.
-
Investment
and
urer
Donald
R.
Officer;
Assistant Treas-
Blot,
curer; and Donald M. Allen, Assist¬
ant
Secretary.
These
hold identical
iaware
also
men
positions with Del-
Fund.
here.
announced
"Most fund sponsors have been
claiming for years that an un¬
steady market seldom weakens
confidence
among
mutual fund
shareholders and has no appreci¬
able effect
fund
Slayton commented.
"Our experience since last Nov. 30
August and November. Any real¬
ized security profits will be dlstributed at year-end.
:
According to.-Slayton, Managed
shares outstanding totaled
13,654,000 on that date, compared
with 14,504,000 on Feb. 28.
The
Funds
total {"on
Feb.". 29
amounted to
purchases
of shares
made through the Divi¬
be
Reinvestment
Plan
and
the
Total
Feb. 28
pared
beginning
on
Hotel
$47,298,000
at
the
the quarter.
(The
of
Delaware
shares
Fund
free from Pennsylvania
are
-Personal
Income
period.)
Property Taxes.
during
Net
the
assets
Feb.
on
29,
Neuclonics Fund
Chemistry
ics,;
in its third
tions
despite
.
a
dence
prices
generally
stock
in this period,
Templeton, President, re¬
ported recently. The mutual fund
John M.
"This
the
is
which
my
\t
4
•
$1.36 Billion
;
Total
funds
net assets
managed
Investors
Di-
Services, Inc., increased
$247,231,070 during 1956, Joseph
at the
in
i
nn
r
17
•
Investors
close of
the four funds
1956
totaled
354,-
Association
Inc., has lined
position
ties
to
the
based
unless
to
Securities
of
on
such
Federal
sale
be
"it
stocks
common
contracts
op¬
in
subject
are
The
laws.
a
"variable
der
following table shows the
,
.
by the SEC.
The court has
taken the motion to intervene
advisement.
the
in
case
Annuity
Life
The
The
are
un¬
Variable
Insurance
Co.
of
sets of each fund at the 1956 and
1955 year ends.
variable
\
Dec. 31,1956
Investors Mutual,
Investors Stock
Investors
Inc
227,828,889
151,095,867
21,133,239
*107,677,081
*51,639,803
Inc
$1,361,874,082 $1,114,643,012
i
•Expressed in Canadian dollars.
curities
under
the
securities acts
Gains made by each fund in the total number of shareholders
shown in the
following table of comparison between the
years
1955 and 1956:
Dec. 81, 1956
Investors
Mutual,
Investors
Stock
Inc
Dec. 31,1955
I
235,000
Fund, Inc
68,000
Investors
Selective
Investors
Group Canadian Fund Ltd
Fund, Inc
212,000
38,000
7,150
7,100
44,000
30,000
354,150
In
its
motions
and
Dividends
totaling
of.which $42,107,811
287,100
$62,870,194,
was derived
against
the 1955
vestment figure
dividend
of
rein-
$35,584,389,
from investment income and $20,-
equivalent to 67.4%. No dividends
capital gains, were
paid to shareholders in the four
funds during 1956.
are
from
the NASD contended that
-
icY- Instead, such ordinary income
.
equivalent
x
to
ga"?s
their 1956
.
...
dividends in the amount of $42,-
691,788,
company shares which
nearest comparable type
the
investment
to
a
variable
an¬
67.9%,
as
•
that the
telephone
new
number
VALIC,
California First
of
violation of the securities acts and
the NASD stated, "denies
public the
protection of their interest which
Congress
found
necessary
and
prescribed" in the securities laws.
The Association pointed out that
it "is required by law to cooperate
with
the
SEC
activities
and
members" and
in
regulating
transactions
that
as
the
to
funds)
in
^
thereby
realized are reinvested,
increasing the assets of the Fund
to a corresponding extent,
Companies.
figure
of
crease
more
represents
than 18%
an
over
in¬
the
The survey is based on regional
sales figures provided by 95 openc om
i
p a n
e s,
representing
its
94.6% of national sales by the in¬
its
dustry.
the NASD "found necessary
in the
protection of the public interest."
with
37%,
1956
1955,
Total
were
senting
four
next
were
59.9%, Maryland with
Arkansas
with
35.8%
and
Vermont with 34.6%.
Although all regions of the na¬
tion, except New England, regis¬
tered increases, the highest were
the
in
North
Middle
Central
an
industry
sales
for
$1,346,738,000, repre¬
increase of 11.5% over
according
the
National
Association of Investment Compa¬
to
area
in
Atlantic,
and
West
Pacific
areas.
At¬
New
—
the
to
the
Pacific
was
due
12.6%
in¬
area
California's
seven-state
West
North
the increases were
general, ranging from 11.1% for
Kansas to 24.5% for North Dakota.
area,
When
survey
compared with 1955, the
shows
a
continuing in¬
popularity of mutual
in
crease
fund shares throughout the coun¬
try, with 41 of the 48 states regis¬
tering
dollar
chases
1955 total of close to $166 million.
end
The
year.
In
of
ments" of Federal laws and rules
the
Utah
Central
million in shares
investment compa¬
(mutual
The
led the nation in percent
a rise of 63.3%
for
crease.
dealers
comply with, all legal require¬
Idaho
mainly
than $197
open-end
nies
with
compared
increase with
rise
Among Mutual
Funtl
Buyers
more
as
York, New
Jersey and Pennsylvania — was
general for all three states, the/^
Investment
tract,
ranking
1955.
lantic
to the investor and the
of a variable annuity con¬
is selling such contract in
five
While the rise in the Middle
1956,
placing second in the nation in
dollar sales, according to a special
survey of regional sales released
by the National Association of
In
in
of
most
where
increases
sales
the
of
pur¬
ment company
states
seven
invest¬
open-end
shares
were
relatively minor declines
lower,
were re¬
Carolina declined
South
ported.
in
1956.
12.3%, Massachusetts 10.5%,
Washington 9.9% while the rates
of New
Hampshire, Rhode Island,
Wisconsin
from
and
Tennessee
ranged
.35% to 6.19%.
nies.
The National Association of In¬
paid to shareholders in Inves-
tors Group Canadian Fund Ltd.,
in accordance with its stated pol-
Shareholders in the three United
States funds reinvested
..,
as
comply
Residents of New York invested
arguments
members "are subject to and made
Totals
762,383
defined
to
nuity."
and related statutes.
the investment company act. Such
•
*
;
are
sponsor
i1
Totals
are
be
made
and
action,
••
i
annuities
seeking to
avoid having to register these se¬
21,739,440
Fund, Inc
•
0
Dec. 31,1955
$890,167,902
Investors Group Canadian Fund Ltd.
,
'
$1,005,234,873
Selective Fund,
annuities
defendants
Investors
Investors
variable
1955.
.
firm's
other securi¬
interest is to
vestment
securities
America, Inc., and Equity Annuity
Life Insurance Co.
Sponsors of
Inc.,
as
"If the public
moved to intervene in
total net assets of the four funds,
Mutual,
The
safeguarded," Mr. Fulton said,
is absolutely necessary
that
are
'.
develop¬
WHitehall 4-2220.
••
securities
of
,
1956,
be
with the laws controlling the sale
of all other securities such as in¬
comparison between total net as-
31,
floor.
will
a
ties.
annui¬
up
of
combined
Dec.
the
Street, New York 4, from Englewood, N. J., ef¬
fective April 1 where it will occupy the entire
regulatory control
ated
announced.
of
i
annuities" Federal court test initi¬
an
Fitzsimmons, President of IDS,
As
i
increase of 67,050 cornpared with 287,100 at the end of
150,
to
firm's main office would be moved to 85 Broad
big securities dealers organization
Shareholders
versified
M.
and
of 22.18%.
of four mutual
by
Inc.,
Group Canadian Fund Ltd., were
$1,361,874,082 as against $1,114,643,012 at the close of 1955, a gain
1
T>
■
Assets Iveacn
-m
Fund,
King
devoted
was
plans lor the ensuing year.
Merritt also announced today
jmaSD Enters Variable Aiiinuties Case
Fund, Inc., Investors Se- Dealers,
lective
conference
ment of
be¬
most widely
accepted method of investing."
Stock
"
.
The
Mcintosh, Vice-President and
WASHINGTON, D. C.—The Na¬
F\-*i-wlc
UlAviO
Beiersdorf, Regional Sales Manager of
the Northwest.
6th
Back row: R. H.
confi¬
destined to
are
nation's
the
of
strengthens
lief that the funds
become
sort
tional
IFIC
Kenneth
States.
market
every
negligible," Slayton
were
said.
common
Sales
Manager of the
Southwest;
James E. McConnell, Vice-President main of¬
fice; S. R. Campbell, Jr., Vice-President main
office; Ted Fearing, Vice-President and Re¬
gional Sales 'Manager of the Mid-West, and
Jamieson & Co. is owned
fund sales increased and liquida¬
almost
decline of the past decade, mutual
fiscal quarter ended Feb. 28, 1957,
decline in
Regional
following
by Channing Corp. and Mr. Jamieson is in
charge of sales in California; King Merritt,
President; Karl Sharpe, Southeastern Regional
Sales Manager;
Chris Tornoe, New England
"During
Electronics
&
Shares increased 6.7%
the
are
King Merrit & Company staff.
Mutual Funds—H. L.
1956 totaled $42,515,000.
The net asset value of Nucleon¬
of the
above
right are Henry
Grady, Secretary, Channing Corp. and in charge
of our
advertising program; H. L. Jamieson,
President sof H. L. Jamieson & Co., specialist in
three-month
■
Shown
Seated at the table from left to
$1,075,000 in capital gains distri¬
butions
Statler.
members
Feb. 28 total does not include the
.penalty.
King Merritt & Company, Inc. recently held
Regional Sales Managers conference at the
a
to $48,257,000, com¬
with
Monthly Investment Plan, both of
year
the fund
net assets of
came
which may be terminated without
last
of
11,699,000.
Periodiccan
con¬
viction."
present
policy calls for quarterly divi¬
dends payable in February, May,
dend
the upward trend of
on
sales,"
gives added substance to this
-
Delaware Income Fund's
*
850.000 during the first
quarter of its 1957 fiscal year, Hil-j
ton Slayton, President of the fund,
creased by
Wallace
Director
of
H.
Fulton,
Executive
NASD, in comment¬
California, at the top in dollar
($240,258,000), accounted
volume
ing on the court step taken by the
Association said the organization
for 17.8%
has
vania
consistently taken the position
New
of all sales, followed by
York
with
with
14.6%,
6.2%.
with
4.8% and Masschusetts with 4.5%.
security and that as such they
should
be
subject to the same
Only Massarhnc^Tu?i-»dis
changed positions in the 1956 top-
of
a
136
Companies
open-end
represents
investment compa¬
Pennsyl¬ nies (mutual funds) and 25 closed-
Illinois
type
that variable annuities are
vestment
end
investment
companies
with
combined assets of approximately
$10 billion.
,
*6
The Commercial and Financial Chronicle
(1378)
The following
Indications of Current
latest week
week
Business Activity
AND
IRON
Indicated
STEEL
oil
Crude
42
Crude
condensate
and
gallons
runs
Gasoline
fuel
Distillate
Kerosene
7,518,500
7,461,100
118,076,000
8,076,000
8,119,000
26,667,000
26,723,000
27,386,000
2,506,000
2,613,000
14,175,000
14,086,000
13,573,000
8,578,000
8,572,000
8,894,000
*203,774,000
199,895,000
OF
8,365,000
205,782,000
20,711,000
195,669,000
.__Mar«, 8
vfar. IK
All
LABOR—REVISED
21,469,000
23,614,000
18,269,000
Durable
'>-33,331,000
85,698,000
93,516,000
69,739,000
Nondurable
8
8
36.-383,000
37,064,000
37,042,000
34,865,000
672,3>6-
703,984
665,251
Public
645,420
$311,646,000
$648,944,000
183,177,000
473,115,000
128,469,000
125,526,000
21,087,000
50,303,000
.Mar. 14
$320,433,000
Mar. 14
$412,284,000
189,302,000
222,982,000
Mar. 14
149,950,000
147,716,000
Mar. 14
construction
municipal
x;
157,930,000*
anthracite
Pennsylvania
s
14,787,000
Mar.
DEPARTMENT STORE SALES
9
9,700,000
*9,660,000
Mar.
9
428,000
9,725,000X
ELECTRIC INSTITUTE:
(in 000 kwh.)
Electric output
(COMMERCIAL AND
FAILURES
553,000
418,000
101
♦99
98
9
—
DUN
FACTORY
A
Louis)
<St.
All
X
(East St
Zinc
tin
S.
•
,
300
/;'» 317
327
$82.41
$84.05
$78.55
89.38
91.34
84.87
74.03
*41.0
.
v
.
v
_-
-
"___
.-V-v.,
goods
,
-
'
,
5.670c
5.650c
5.174c
$62.90
$59.09
$50.50
$53.33
40.7
41.9
.Z
.
.
41.2
39.8
39:9
...
;
$48.83
5.670c
2.05
2 06
1.36
1.75
$209,000,000
PAYMENTS
1.93
2.18
1.86
INSURANCE—BENEFIT
2.05
2.18
$197,500,000
$209,200,000
56,300,000
56,900,000
.
TO
\
LIFE
OF
INSURANCE—Month of December:
31.600c
31.575c
33.425c
47.800c
29.775c
30.300c
30.625c
48.325c
Death
16.000c
16.000c
16.000c
16.000c
Matured
13
13
13
13
13
15.800c
15.800c
15.800c
15.800c
Disability payments
14.000c
14.000c
14.000c
14.000c
Annuity
13.500c
13.500c
13.500c
13.500c
payments
Surrender values
25.000c
25.000c
25.000c
22.500c
Policy
9tt.b'<5c
96.870c
100.625c
101.875c
Mar.
Mar.
Mar.
Mar.
at
benefits •__!
—
if!-*.
endowments ____v_
"
;j
63,700,000
8,906,000
9,100,000
9,400,000
38,100,000
44,100.000
38,300,000
94,900,000
—
86.000,000
78,700,000
—
__L-___________X___
Z_"
dividends
1*76,300,000
80,100,000
163,000,000
*390,900,000
*590,900,000
Total
MOODY'S BOND PRICES DAILY AVERAGES:
$473,100,000
$555,500,000
$3,367
$3,079
.X
Mar. 19
90.88
91.02
91.11
Mar- 19
96.54
96.54
96.38
107.62
Aaa
Mar. 19
Mar. 19
Mar. 19
101.31
101.47
101.47
111.07
99.20
99.20
99.04
109.79
96.69
96.54
96.23
107.62
Ordinary
Mar- 19
89.78
89.78
89.37
102.46
Industrial
95.47
95.47
95.16
106.21
Group
96.69
97.00
96.69
108.16
97.62
97.52
97.16
108.34
3.27
3.24
3.23
2.92
PERSONAL INCOME IN
3.97
3.97
3.98
3.30
(DEPARTMENT
3.66
3.11
3.81
3.18
3.99
3.30
Wags and salary receipts,
4.46
3.60
,
94.48
Average corporate
Commodity
8. Government Bonds
U.
:::::::::::::::
~
'
"
~
Aa
A
Baa~—II—HI"III"IIIIHII—I-IIIII-I
Railroad
Public
—--
^ar- J9
Group
Utilities
Industrials
MOODY'S
-~™ar'
Group
—Mar. 19
Group
YIELD
BOND
AVERAGES:
DAILY
m
19
™ar- J9
Mar. 19
Average corporate
Aaa
3.67
„
39>6
"IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII-
Railroad
Public
3.80
3.96
3.97
4.43
4.43
4.04
4.04
4.06
3.96
3.94
3.96
"Jar* J9
Group
Utilities
Industrials
Group
Group
^ar- 19
yIar- 19
—
__
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
Production
(tons)
Percentage
of
—
activity
(tons) at end of period
orders
AVERAGE
=
Mar. 15
100
-
ACCOUNT
FOR
LIFE INSURANCE—Month of
OF
(000.000
k'
$3,800
,
536
of
December
OF
UNITED
>317.5
21^.2
3.38
60.9
*60.6
3.27
\
Service industries
31.2
31.1
3.90
3.93
413.9
409.1
Less
30.3
employees'
Other
302,893
350,780
265,863
285,879
280,314
266,246
95
100
95
92
282,539
contribution
454,345
450,170
588,027
110.77
110.97
111.05
107.33
Total
labor
RECEIVED
and
farm
S.
829,220
1,430,910
1,170,390
1,091,930
1,026,580
1,711,070
1,431,660
1,325,430
Feed,
grains
Food
OF*
sales
sales
L
r
Total sales
.
Other transactions Initiated
Commercial
Feb. 23
Feb. 23
Feb. 23
46,400
39,700
21.400
307,230
292,450
243,160
and
332,150
264,560
Tobacco
Feb. 23
Feb. 23
297,654
550,985
492,204
131,050
110,650
65,900
376,445
651,112
521,422
Dairy
618,999
84,550
Feb. 23
Feb. 23
460,995
—Feb. 23
1,420,914
Feb. 23
Feb. 23
Feb. 23
,
328,310
447,110
411,620
2,389,252
1,984,262
1,930,385
2,836,362
2,395,882
2,251,185
632,072
661,195
2,492.315
2,284,934
2,149,979
262
Short
sales
Other
sales
Total sales
1,747,905
ODDN. Y. STOCK
COMMISSION:
ITOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
DEALERS
LOT
EXCHANGE
Odd-lot sales
Number
SPECIALISTS
AND
SECURITIES
—
~~~~~
and
~
254
239
155
165
.262
Dollar value
by dealers (customers' sales)—
Nujnber of orders—Customers' total sales
1,391,505
1,119,508
$70,071,092
$66,902,133
$57,805,470
.Feb. 23
676,863
Feb. 23
Feb. 23
Feb. 23
6,769
18,465
10,714
1,166,052
975,321
954,155
other sales
Dollar value
Round-lot
—
sales by dealers—
Number
Other
986,035
$55,941,254
$47,370,141
SALES
203,650
263,920
153,910
275Zii6
203,650
263,920
ON THE
384,130
652,840
Total
ACCOUNT
round-lot
OF
MEMBERS
N. Y. STOCK
sales—
—
=
—
U.
S.
7.057,470
13.481.900
10,553,430
10,657,520
7,494,220
14,219,820
11,179,930
11,059,820
737,920
626,500
402,300
DEPT. OF
116.9
116.8
r.
S.
Mar. 12
88.5
88.8
—As
at
103.9
*103.5
104.0
99.2
Mar. 12
82.2
80.6
81.9
70.4
AH commodities other than farm and foods
Mar. 12
125.3
*125.3
125.5
120.6
I,
figure,
as
a
pound.
171,876
and
Bus
-
.248,071
290.950
191,749
.
.
731,229
'
822,668
Inner
2,837,451
2,685,778
2.584.650
2,718.843
6,250,298
6,833,279
37,641,000
37,025,000
32.393,000
37.656.000
35,586.000
34,401,000
26,524,000
*
;
2,791,631
2.669,575
6,109,425
26,124,000
26,038,000
(Camelback)—*'
i
1-,
(pounds)
STATUTORY
.'
Feb.
830,000 barrels of foreign crude ruas. SBased on new annual capacity of 133,459,150 ions as
1, 1956 basis of 128,363.090 tons.
^Number of orders not reported since introduction of
iPrime Western Zinc sold on deli vexed, basis at centers where freight from East St. Louis exceeds
Jan.
28
DEBT
LIMITATION
(000's omitted):
amount
that
may
be
•
outstanding *
time
~
'
~
$278,000,000
public debt
gross
*
Total
obligations
$278,000,000' $281,000,000
276,269,160
public
debt
teed obligations
Deduct—olh>>t' outstanding
Grand
not
Balance
under
face
public
amount
of
debt
obliglhv°ns,
,
_X,
$276,335,463
$280,166,549
451,958
453,250
470.287
$275,882,213
$279,696,262
2,074,002
2,117,786
1,303,737
guaran¬
obli¬
outstah(Tr«i£
authority
58,084
the
StiCject to debt limitation..,
total
above
and
* 280,108,46^5
S275,925,997
by
106,720
$276,377,955
owned
276,228,743
108.794
not
—
gross
lilncludes
against
Monthly Investment Plan.
one-half cent
of
face
any
gations
1957,
Truck
772,072
of)—
Treasury
86.6
Mar. 12
products
GOVT.
Total
112.5
Meats
♦Revised
(Number
Guaranteed
117.0
88.9
Jan.
-
.
246,236
Rubber
Total
Mar. 12
Processed foods
tA
214,134
Z
Outstanding—
100):
-
commodities..
Farm
436,750
Feb. 23
a
(1947-49
1,255,363
2,815,258
of)—~~
Inventory (pounds)
Feb. 23
sales
WHOLESALE PRICES, NEW SERIES
LABOR
1,060,430
3,207,090
/
Total sales
All
(Number
'
Production
Feb. 23
Commodity Group—
1,047,297
1,021 934
3,377,991
(SHARES):
Short sales
Other
7,222.924
15,963,038
1,130,382
Shipments (pounds)
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR
6,580.333
Inventory
384,600
6,467.310
6,496,017
960,678
Production
620,170
220
15,595,534
Shipments
Tread
Feb. 23
207
205
•
..
7,425,137
-
^____,
Passenger, Motorcycle,
T.
,
—
TOTAL ROUND-LOT STOCK
275,810
256
of)—~TTZ"~~
(Number
Inventory
Tubes
153,910
...
261
"■
16,493,563
Production
-
$49,085,252
Feb. 23
sales
Round-lot purchases "by dealers—
Number of shares
_
:
Tractor-Implement Tires
Shipments
958,728
Feb. 23
Feb. 23
sales
Short
1,134,517
-
shares—Total sales
of
$31,762,434
Tires
Inventory
4,573
670,094
short sales
Customers*
II
Bus
/
6.587,164
-
1
Production
Odd-lot purchases
Customers'
and
.
275
.
.j.
Shipments
1,543,897
-
ASSOCIATION,
December:
Production
Truck
933,017
$42,531,243
221
(Number of)—r
Inventory
Feb. 23
Feb. 23
shares
of
<
161
452
"
'
234
269
of
236
158
461
237
^„L
MANUFACTURERS
225
1
eggs
INC.—Month
171
"
264
ZZZZZZ
Passenger Tires
Shipments
(customers' purchases)—t
dealers
by
ON
EXCHANGE
216
162
3
products
RUBBER
*
V
259
220
234
457
^
1
"
185
■"
266
-
:
Total round-lot transactions for account of members—
Total purchases
'
227 '
Wool
320,800
1,419,595
782,162
248
236
crops-
Meat animals
595,295
231
277
187
vd X
Poultry
240
256
hay___
237
249
.
Livestock
sales
226
238
I
fresh
;
1
Potatoes
343,130
Other
--
V._^
vegetables,
Oil-bearing
35,900
213,930
purchases
Short sales
18.0
302.8
INDEX
.
260,330
off the floor—
Total
Total sales
—
Fruit
256,770
19.1
AGRICUL-
grains
316,120
30.2
19.2
FARMERS
Cotton
279,170
*30.3
239
233,500
163,000
7.3
49.2
*317.9
DEPT.
products
261,270
Feb. 23
5^4
7.4
*51.7
income
Crops
the floor—
36.7
6.0
29.2
dividends
TURE—1910-1911=106—As of Jan. 15:
All
*38.2
\
51.2
income
BY
U.
—
29.4
7.4
rental
transfer payments..,-—
NUMBER
94.5
57.6
'
in¬
income
and
nonagricultural
PRICES
•
special
6.0
Personal interest income
Total
for
:
Proprietors
285.170
478,942
.__
Government
3.26
413.1
j'280,160
purchases
'
'
V
'
*101.1
197,360
_
x
*231.0
Feb. 23
Feb. 23
Feb. 23
Other
'
X.'X-
*$333.5
OF
sales
••y x
COMMERCE)—Month
302.1
sales
Short
$5,833
.
132.5
1,274,210
on
$4,742
STATES
$333.5
surance
i
THE
income
1,476,610
Other
2,265
X
(in billions):
Total personal
1,682,160
Total sales
489
X 863
$7,062
960,260
Other transactions initiated
512
2,726
:
.
—
Feb- 23
Short
Total
December
omitted):
purchases
Total
INSTITUTE
—
total__
MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
TRANSACTIONS
ROUND-LOT
PURCHASES
producing industries.
Distributing industries
410.7
9 1
9
9
9
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
.
3.90
A
Mar.
Mar.
Mar.
Mar.
>
k
Mar. 19
MOODY'S COMMODITY INDEX
Unfilled
3.80
^ar- 19
-
--
Baa
vlar. 19
vlar. 19
A„
Aft
INSURANCE
LIFE
'
Government Bonds
U. S.
,
'
.
Nondurable goods
$49.50
39.0
X,.:.'..'
manufacturing
Durable goods
$64.00
41.0
,
_
,
goods
$64.68
69.83
"
^
Hourly ^Earnings—
i
.
'
_
'
,
goods
Nondurable
7,111,000
OF
'
'
V "v
Durable
9,833,000
♦7,086.000
77.54
DEPT.
"j'
.
POLICYHOLDERS —INSTITUTE
at
York)
(New
*
manufacturing
goods
..All manufacturing
•>..
16.944,060
*9.593,000
__
HOURS—WEEKLY
January:
.
Mar. 13
Mar. 13
Mar. 13
(primary pig. 99% ) at
Aluminum
Straits
Louis)
11,202,000
*
at
(delivered)
JZinc
of
*17.079,000
7,073,000
40.2
AND
ESTIMATE—U.
Nondurable
;o9
LIFE
at
159; 1
107.2
17,033,000
______
;
__—
EARNINGS
AVERAGE
408,000
J. QUOTATIONS):
M.
Electrolytic copper—
Domestic refinery at
Export refinery at
Lead (New York) at
Lead
11,946,000
11,857,000
301
Mar. 12
Mar. 12
Mar. 12
steel (per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)
(E.
goods
All
Finished
*170.9
X", 9,960,000
;
goods—
Weekly Earnings—
I
IRON AGE COMPOSITE PRICES:
165.1
Averagc=10O)—All
.;
manufacturing
Durable
Nondurable
'
Mar. 14
*107.7
number of employees in manufac¬
turing industries—
1
.
9,554,000
A"
BRADSTREET, INC.—
METAL PRICES
11,650,000
Mar. 16
INDUSTRIAL)
5,586,000
106.0
____
Durable
Mar.
>7.770,000
Estimated
Hours—•
EDISON
,
'
INDEX—FEDERAL RESERVE
SYSTEM—a»47-49 AVERAGE —100
13,356,000
*7,759.000
*5,507,000
Avge.=100)—•
__
(1947-43
LABOR—Month
(tons)
(tons)
(1947-49
•13,266,000
7,720,000
5,487,000
"
S. BUREAU OF MINES):
(U.
coal and lignite
Bituminous
•
162,503,000
73,032,000
COAL OUTPUT
indexes
manufacturing
All
construction
and
13,207,000
____
__
manufacturing
ENGINEERING
construction
_;
175,829,000
107^382,000
644,115
State
$82,100
of
workers )__—
—:
goods
Payroll indexes
684,486
freight received from connections (no. of cars)—Mar.
8.
'$88,000
DEPT.
SERIES—Month
(production
goods
Employment
697,601
637,694
9
9
U.
S.
*
9
9
(number of cars)
PAYROLLS—U.
manufacturing
8
Mar.
Private
12,300
23,000
January:
v
NEWS-REOORD:
Total
AND
.Mar.
—
13,200
23,500
$88,500
EMPLOYMENT
Mar.
CONSTRUCTION
$45,900
13,300
___________
._
2,591,000
13,328,000
:_.Mar,
(bbls.) at
ENGINEERING
$51,300
$51,400
_
23,800
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
Ago
December
(millions of dollars):
All
CIVIL
of
26,628,000
2,431,000
^—Mar.
(bbls.) at
SERIES—Month
Year
Month
COM¬
OF
7,982,000
lines—
(bbls.) at_
freight leaded
NEW
DEPT.
—
Previous
7,162,250
Distillate fuel oil (bbls.) at
Revenue
INVENTORIES
Wholesale
7,812,850
(bbls.)
unfinished gasoline
Residual fuel oil
BUSINESS
2,449,006
Mar.
;—.Mar.
Mar.
]
(bbls.)«2>^.
Stocks at refineries, bulk terminals, in transit, in pipe
and
2,504,000
*2,401,000
Mar.
(bbls.)
output
Residual fuel oil output
Finished
99:5
(bbls. of
(bbls.)
oil
Ago
97.8
Manufacturing
(bbls.)
output
§2,392,000
Mar. 24
output—daily average
each)
&
to stills—daily average
output
Kerosene
Ago
*93.8
of that date:
are as
Month
Week
INSTITUTE;
PETROLEUM
AMERICAN
of quotations,
cases
either for the
are
Latest
MERCE
Equivalent to—
«v
Steel ingots and castings (net tons)
in
or,
Year
§93.5
Mar. 24
production and other figures for thi
cover
that date,
on
Thursday, March 21, 1957
.
Dates shown in first column
month available.
Month
Week
INSTITUTE!
operations (percent of capacity)
steel
or
month ended
Previous
Latest
AMERICAN
or
statistical tabulations
.
.
issuable
Number 5622
185
olume
.
.
.
The Commercial and Financial Chronicle
^1379)
"
The
Massachusetts Issue
after
deficits
Of $20,160,000 Bonds
As in the
of the Transportation
1
;
Ratios surveyed in last
sachusetts various purpose bonds
at
prices
to
yield
from
Pittsburgh & Lake Erie, Delaware & Hudson, Reading, Northern
Pacific, Atlantic Coast Line and St. Paul, to name a few, the dif¬
ference will usually be due to variation in the respective Main¬
tenance Expense ratios.
The Chesapeake & Ohio, Delaware &
Hudson, Delawere, Lackawanna & Western and Reading Company,
for instance, have a higher standing in the Pre-Tax Margin array
due largely to the lower rate at which maintenance was charged
Fund
of
$5,686,130,
Goldshine
with
1955
1
45.5%
36.2%
1
43.7
47.5
30.3
2
2
He
32*3
30.0
3
5
30.0
4
3
a
DIVIDEND
sur¬
26.2
5
6
4
29.9
;
1956
,
-
29.5
32.7
30.6
Ohio
27.8
27.4
23.7
7
7
27.3
24.2
17.0
8
10
1957
formerly
Aroostook
23.8
24.7
13.7
9
9
26.1
18.5
10
8
Pittsburgh & West Virginia 23.1
New York, Chicago & St. L. 20.6
22.6
20.6
11
13
23.4
23.7
12
12
21.8
19.8
13
14
18.9
23.6
12.3
14
11
_—
Chicago Great Western.
___
"
36
At
the close
of
18.3
20.0
18.7
"16
,21.6
21.5
16
15
16.5
17.0
17
22
15.9
16.2
18
23
17.9"
16.6
19
19
21
15.2
17.7
15.5
20
20
-
22
15.9
23
Union
Air
Line
Pacific
Reading Company
—
Great Northern
Illinois
—
Central
of
Directors
25e
has
^,1
Western
Pacific
14.5
Missouri
Pacific
21
28.3
18.8
■
22
'
■■
declared
13.2
14.2
16.8
Texas & Pacific.-
13.9
18.4
23
21
;
24
18
16.8
'
20.8
the
close
of
j
business
March
CULLEN,
T.
Treasurer
Southern
a
meeting of the Board of Directors
Gamewell Company held on
The
record
the
at
of
close
business
on
April 5, 1957. *
IOWA SOUTHERN
E. W.
SUNDBERG,
Edison
California
Company
DIVIDENDS
The Board of Directors has
authorized the payment of the
following quarterly dividends:
COMMON STOCK
Dividend No. 189
Treasurer
UTILITIES COMPANY
5
30
:
13.3
14.3
St. Louis-San Francisco
17
at
60 centi per share;
March 15, 1957
34
PREFERENCE STOCK,
20
«.
4.48% CONVERTIBLE SERIES
12
Dividend No. 40
28 cents
13.9
15.0
15.4
25
26
24
Class I Average..:
13.9
15.3
14.5
26
24
29
Northern
12.1
27
27
26
DIVIDEND NOTICE
; 28
25
17
The Board of Directors has declared the
Minneapolis & St. Louis.
__
15.0-
15.2
12.0
Gulf, Mobile- & Ohio__^_
Chicago, Rock Island & Pac. 12.0
Minneap., St. P. & S. S. M. 11.4
Central of Georgia.---.-— 11.3
15.2
17.6
11.1
11.9
11.0
9.2
Pacific
Norfolk & Southern
Chicago
Eastern Illinois
&
Baltimore &
Colorado
&
13.5
13.1
29
28
7.6
30
29
42
33
48
5.1:..:
11.7
14.2
32
41
10.9
21.0
9.2
9.3
15.4
Erie RR..
per
share
share
34
33
41
32
35
34
49
Common Stock
36
35
11
all 'dividends
40
25
to
cents
The
its
on
payable
June
1,
dividends
Trustees
1957.
payable April 1,
1957, and a regular quarterly divi¬
dend of twenty-five cents (25(f) per
i, 39
31
39
6.7
:
40
44
44
share
13.4
'
41
37
33
Association
Pacific
8.1
10.0
of
the Association
11.9
Chairman
March 19, 1957
a
convertible preferred shares
EDWARD L. SHITTS,
8.2
'
nos. 40
declared
have
quarterly dividend of $1.12^ per
share on the 4^% cumulative
($15 par)
stockholders of record May 15. 1957.
27
43
per
par)
:
8.3
38
common
its
on
15.1
Central RR. of New Jersey
—
cents
13.1
8.8
RR.
'
28Vi cents
Dividend No. 36
per
share.
preferred and
8.4
9.1
Monon
44
PREFERENCE STOCK,
and Electric Association
its
on
$1.76 Conv. Preferred Stock ($30
37
:
5.0: ::
9.8
Syst.
— -. — -4.^- — — — — —— — —
share
cent- per
share;
4.56% CONVERTIBLE SERIES
4%% Preferred Stock ($30 par)
30
8.i:
9.8,
35%
•
31
33
11.4
'
Southern
32
14.3 ;
10.3:
Southern
Lehigh Valley
31
•
per
New England Gas
following regular quarterly dividends:
35
13.3
10.4
Ohio
Wisconsin Central
f
on
the
common shares
of the
payable April
15,
7.6
10.0
5.4 :
42
36
47
1957. Both dividends
Delaware Lack. & Western
7.6
3.8,
12.0 •
43
49
37
to
Pennsylvania RR.
75
-A 7.5
6.6 V
44
46
45
The above dividends
able
April 30, 1957,
holders
of
Checks will
are
to
pay¬
stock¬
record April 5.
be mailed from
the
Company's office in Los
Angeles, April 30.
p. c.
hale, Treasurer
March 15,1957
close of business March 28, 1957.
.New York
Central-—
„—
Missouri-Kansas-Texas
7.1
—_
8.2
14.8
45
45
28
6.8
''7-0
8.5
46
47
40
arc
shareholders of record
H. C. Mookb,
payable
at
the
Jr., Trfasurer
'
Chicago, Milw., St. P. & P.
Atlantic
Boston
Coast
Haven & Hartfd.
Chicago & North Western—
8.4
11.9
47
42
38
4.9
N. Y.t New
9.4
7.6
48
39
43
Common & Preferred Dividends:
1.7
3.5
6.5
49
50
46
0.5
3.9
3.9
50
48
50
The
Cehigh Valley and Southern Pacific, notably among
Board
Federal
of
Directors
of
Paper Board Company, Inc.
day, declared the following
has this
quarterly
dividends:
\ Notable achievement in improving the trends of their Pre-Tax
Margins in the- .past five years has been shown by the Virginian,
Chesapeake & Ohio, Delaware & Hudson, Bangor & Aroostook,
Central of Georgia and Wisconsin Central. The reverse has been
true for the Western Pacific, Texas & Pacific, Colorado & South¬
ern,
March 14,1957
Inc.
6.2
Line—
Maine
&
FEDERAL PAPER BOARO CO.,
50c per share on
28341
per
share
PACIFIC
Common Stock.
the 4.6 %
on
POWER
Cumulative Preferred Stock.
Common stock dividends are
15,
record
others.
& LIGHT COMPANY
payable
1957 to stockholders of
the close of business March
April
at
28,1957.
on the 4.6°i
Cumulative
value Preferred Stock are pay¬
15, 1957 to stockholders of
record May 29, 19571.
Dividends
$25 par
able June
COUPON PAYMENT
AVAILABLE
Editor
15
—
Analyst
—
Writer
NOTICE
4 years Magazine of
Wall Street
Excellent References
Box C-37, Commercial
OF
COUPON
NO.
will
be
paid on March
31. 1957 at Bankers Trust Company, -Successor
Trustee, .*6 Wail Street, New. York 15, N, Y.
Corporation,
GENERAL REALTY
&
UTILITIES
CORPORATION
Y.
25
CORPORATION
Payment of the amount called for by Coupon
25 representing interest for the Six months
period ending March 31, 1951 on the above
mentioned
Debentures
of General
Realty
&
Financial Chronicle
25 Park Place, N. Y. 7,'N.
PAYMENT
DIVIDEND
The
Board
15,
1957.
-
of
ON CAPITAL
Directors
been declared for payment
SHAKES
has
declared
ers
SAMUEL
March
15,
1957.
M.
FOX, Treasurer.
April 10,1957, to stockhold¬
30,1957.
of record at the close of business March
a
quarter-annual dividend of 20 cents per share
on the Capital1 Shares of the Corporation, pay¬
able March 29, 1957, to stockholders of record
at the close of business March 19, 1957.
SAMUEL M. FOX, Treasurer.
|
March
share on the 6.16% serial pre¬
period from date of issuance to end
of quarterly period, and 40 cents per share on the com¬
mon stock of Pacific Power & Light Company have
ferred stock for the
GENERAL REALTY & UTILITIES
No.
Utilities
&
OP
Quarterly dividends of $1.25 per share on the 5 % pre¬
ferred stock, $1.13 per share on the 4.52% serial pre-,
ferred stock, $1.25 per
Cumulative Income Debentures
Due September so,
1869
4%
Vice President and Secretary
March 14, 1957
Bogota. New Jersey
CORPORATION
years' experience with N. Y.
Stock Exchange Firms
J Dividend
Notice
Robert a. Wallace
GENERAL REALTY & UTILITIES
Portland,
March
oregon/
13, 1957
'
H
Treasurer
_
per
1957.
j
andi
WALLACE M. KEMP,
March 13. 1957
■
Friday, March 15, 1957, a regular
quarterly dividend of 40 cents per
share was declared payable on the
Common Stock of the Company on
April 15, 1957, to stockholders 'oi:
18
16.0,
April 12, 1957.
Otto W. Strauss
Vice-President• and Treasurer
' 10
16.0
of business
at
15
Atchri., Topeka & Santa Fe 16.8
25.
of record
holders
13
15
Seaboard
both Preferred
are
Dividend No. 214
14
Louisville & Nashville.
on
share on the out¬
standing Capital Stock of the Company
of
the par value of $12.50 per share,
payable April 25,
1957, to holders of
Quarterly Dividend of
Twenty-Eight Cents (28c) per
share on all the outstanding
stock of Combustion Engineer¬
ing, Inc. has been declared, pay¬
able April 26. 1957, to stock¬
9
20.1
Railway
of
'
a
A
16
&
Southern
Board
dividend
record
32
23.5
Bangor
&
declared
per
1957.
the safety car heating
February 27, 1957
19
Delaware
cents
payable May lj
to stockholders of record April 3^.
SAFETY INDUSTRIES, INC.
m~m
ENGINEERING
8
Hudson
Chesapeake &
have
Directors
share on
the Preferred stock They have also
declared a dividend erf 62 ^ cents per
share, and a special dividend of 50
cents per share, on the Common stock*
^JfJL
NOTICES
COMBUSTION
2
29.9
Denver & Rio Grande West.
Norfolk & Western
NOTICES
The
>'
Quarterly Dividend
dividend of 37
Common stock
The
7
6
Gross,
The dividends
a
6
30.3
with
CORPORATION
207th Consecutive
4
32.3
formerly
was
Rogers & Co.
3
30.3
Virginia Railway
Pittsburgh & Lake Erie____
Western Maryland
Kansas City Southern..____
_ _
of
the Pacific Coast Stock Exchange.
DIVIDEND NO. 239
1
50.8%
W,
E.
are
UNITED SHOE MACHINERY I
210
Co.,
West Seventh Street, members
1951
1951
&
And lighting company, inc.
Ranking
1955
associated
now
Purcell
m
DIVIDEND
securities
Treasurer.
$4,545,156
up
Officers
du Pont
I.
a
Stewart, President; A. A. Brown
and C. Fondren, Vice-Presidents;
and
P.
A. Langley,
Secretary-
from that at the close of 1954-55.
cific, which have a lower ranking as to Pre-Tax Margins than as
to Transportation Ratios, increased their maintenance rates in
1956. In other cases, however, the case is admittedly not so clear.
-Pre-Tax Margins-
is
Neary,
On the other hand, The Coast Line and the Western Pa¬
1956
Building to engage in
business.
General
1955-56
closed
plus
formed. with
DIVIDEND NOTICES
with
Massachusetts for the payment of
which the full faith and credit of
the Commonwealth are pledged.
Massachusetts
been
the Alfred
LOS-ANGELES, Calif—Sanfofd
L.
plus -by Standard & Poor's, the
bonds are general obligations of
The
has
in
With Neary Purcell
Rated Aa by Moody's and A-l
stantial differences do occur, as in the case of Chesapeake & Ohio,
offices
(Special to The Financial Chronicle)
bid
pfT00.71 for a.3,10%.xouponr
Ta^neflhterest cost of 3.029897%.
enues.
Since the greater part'of operating expenses consists of
Transportation Expense and Maintenance Expense, the pattern and ;'
ranking in the following tabulation will be somewhat similar to
.that of the Transportation Ratio survey of last week. Where sub¬
f
MJAMI, Fla.—Christopher Cor¬
poration
56.
group was awarded the issue on a
The 49 roads included in this, which together with the ClaSs I"
make~a «4etalr©f"*50 taffies;'* STet lf§ted^n^Re^braer 'oir
their 1956 pre-tax profit margins as a percentage of gross rev¬
j
(Special to Tax Financial Chronicle)
for
2
bonds due April 1, 1958, to 3.05%
for those maturing in 1975-77. The
-average
Form Christopher Corp*
funds
Corporation tions in-1955-56 were 12.8% above
on, March 19 publicly offered $20,those of 1954-55 and 6.5% above
i60,t)00/of Commonwealth of Mas¬ the estimated collections for 1955-
column, the 1956 pre-tax operating profit margins of a:
selected group of roads are now reviewed in comparison with those
of, the previous year and, for better perspective and trend indica¬
tions, in. comparison with the corresponding 1951 figures; The pre¬
tax'margin is the percentage of gross revenues represented by the
remaining gross after deduction of all operating costs and taxes
except the Federal income tax." r-;
^;
~
—
other
arid The First Boston
week's
in, 1956.
in
Offered to Investors
Pre-Tax Profit Margin*
case
'
($6,282,440 Port of Boston Fund,
$2,049,454 Veterans' Services Fund,
and $6,614,841 Old Age Assistance
Fund). A factor in the improved
A
group
headed
jointly by year-end position
was
general
Bankers Trust
Company, First fund revenue some
$3,000,000 in
National City, Bank of New York excess
of; estimates. Tax collec¬
By GERALD D. McKEEVEB
:
'
surplus at June 30, 1956 is
provision of $9,292,736 to
cover
,
V '
'
V
W. Millay,
Secretary
■
.■*
48
The Commercial and Financial Chronicle
(1380)
.
.
Thursday, March 21, 1957
.
Governor
BUSINESS BUZZ
asked
Taft
foreign policy
my
"to
meet
Foster
man,
Dulles."
In due course Mr. Dulles
n...
BeKmMhe-Scena Interpretation*
from the Nation'*
into the Senator's of¬
fice. After 15 minutes of talking
by
Y#lff
/I f|/~f
jCM-HXA
Capita!
was
ushered
Mr.
Dulles
about
collective
security
and
world
responsi¬
bilities, Mr. Taft, as was his
X l/U/
when he was thoroughly
bored, began reading papers oc
wont
*
WASHINGTON,
C.
D.
Federal
tittle
Board
Reserve
bull
to
need
sees
the
up
ex¬
pansion of consumer instalment
into
credit
full-blown
another
crisis which
be solved only
can
by expert government economic
planning or economy-enervating
Federal regulation.
has
been
often
credit
instalment
"Consumer
It
—
be deduced that the com¬
petent economic brains of the
may
factor
a
his desk and answering in mon¬
osyllables.
in
"What
"
"The
influence of
major
•
is
an
of facts about
ment
vations
comprehensive
some
analyses
the
these facts.
of
One of the
contains
It
were.
And
includes
it
professors' opinions, sound
some
staff of
study
the
otherwise,
ii
would, further
widely-held
justified,
the
support
appraisal
of
leadership of Chairman William
McChesney
Martin,
He
Jr.
the most prominent
is
extant
guy
hereabouts who consistently ancl
thoroughly believes in the
mar-
fset
price
place
system
and
the
the
as
free
efficient
most
mechanism for dispensing social
and
economic
As
fact, if Martin
President
were
lieve
that
some
could
come
he
would
be¬
with
one
spend
in¬
himself
it
better-than the government can
spend it for him.
It
fco
Martin
imagine
'fellow
that
who
would
is possible
let
is
the
a
citi¬
spend his money on an at¬
tractive education for his kids
zen
or
an
sound
cars.
unattractive mistress; for
securities
This
is
fancy sport
or
quote
no
goods
decade
will
or
at¬
tribution.
the
there
-personally back the institutionconsumer
other
specific
only in time of
war, and then primarily as a
necessary evil to curb the sale
credit
of
or
controls
items.
consumer-scarce
of
over
be
in
consumer
it
credit
"new
be
''Lay off that Mother Goose stuff—Let's
current
rapid
more
a
will
growth
of
finance
In
staff
aid
instalment
study
and
even
of
whether
question
swered,"
question
and
hint
to
the
con¬
remain
was
whether
is
of
the
credit
in
as
a
credit
re¬
instal¬
whole
government
recommendation for liquidation.
per
postal
in
persons
not
reach
the
in either degree or in
timing to
of
facilitate
economic
post
the
rural
of
fourth
or
have
any
On
seems
ence
credit
to
deprecate
of
the
influ¬
instalment
consumer
economic stability.
In general, the report seems
to put at no great value, the
upon
influence
in
of
consumer
aggravating
under
have
credit
'
I
ilton
This
big sentiment Congress
is reflecting for
economy in the
abstract
it
lated
got
goes
into
capsule test of
when it is trans¬
a
the
circumstances
prevailed
such
in
as
recent
months.
—
Finally,
House
held
and
30
failed.
'Since
1910
the
Post
Office
Department has been operating
the
years
has
postal
savings system.
legedly this
was
Al¬
needed for two
a
Post
class
postal
the
on
after
bill
a
its
now
Congression-
a
commission
in
to
who,
if
he
were
to
have
nice public
relations
route.
One of the
trying
of
lucky by-products
enterprise is that the
that
Liberal
72nd
Arts
Press,
Street,
New
153
West
York,
has
published a collection of Ham¬
ilton's essays on "Commerce and
Finance" for $1.25 in paper edi¬
few weeks ago, the
Office
committee
hearings
days
;
tion
which
enactment
$3.50
or
for
bound edition.
stop the Post Office De¬
partment from taking new-de-*
posits and begin a liquidation
of
such
deposits,
to
The
Post
the
Office
bill,
the
cloth-
it
was
On
Dulles
;
mer
Taft.
issue
and
Back
in
mu¬
Guest
session
speaker
on
at the opening
Tuesday morning will
Lee, Sr., President
be Laurence F.
of
the
Co.,
Peninsular
and
the
of
Life
Insurance
Occidental
Life
Insurance Co. (Raleigh, N. C.) and
former president of the United
States Chamber of Commerce.
of
the
meetings
Vance,
Sanders
&
is
partner
a
Company.
Other
partners
and
representa¬
tives of the firm who will partici¬
pate are Kimball Valentine, of
Washington; Henry Parkman, III,
of
Nashville; and Thomas A. Bax¬
ter
and
Arthur
H.
Haussermann,
of Boston.
The
funds
for
which
Vance,
Sanders & Company are
principal
underwriters, which also include
Massachusetts
Stock
Fund,
The
Investors
Growth
Fund,
Canada
General
Century Shares Trust and
Bond
Fund
total assets of
423,000,000
of
Boston,
had
approximately $1,the
at
close
of
last
month.
With Walston & Co.1
.
-
between Taft
Dewey, the then New York
Colorado Oil & Gas
Walston
&
Co.,
Inc.,
332
North
Camden Drive.
With Hannaford & Talbot
STOCKTON, Calif. —John P
Doherty has been added to the
staff of Hannaford &
Universal Match
North Orange Street.
Olin Oil & Gas
WE ANNOUNCE THE REMOVAL OF OUR OFFICES
TO
TP APING
Talbot, 2221
-
-
MARKETS
Delhi-Taylor
Trans-Canada Pipeline
20 Broad Street
Bank of America
NEW YORK S, N. Y.
'
f
Lone Star Steel"
A. S.
Indian Head Mills
TRADING DEPARTMENT
CASHIER'S DEPARTMENT
•HAtiover 2-0050
HAnover 2-3280
.
Wagner Electric
Botany Mills
Campbell Co. Com.
Fashion Park
"
Pan American
Sulphur
United States Envelope
Morgan Engineering
National Co.-
Bought—-Sold-—-Quoted
SCHERCK, RICHTER
Member Midwest Stock
Bell
Teletype
SL 456
4'
COMPANY
-
Carl Marks
Exchange
.
320 N. 4th St.
St.
Louis
Foreign Securities Specialists
GArfield 1-0225
2, Mo.
MARCH 18, 1957
Riverside Cement
Flagg Utica
Co. Inc.
&
LERNER & CO.
Investment
10 Post Office
-
;
,
■
•
'
BEVERLY HILLS, Calif.—Har¬
old Riff is now connected with
1948, before the
settled
was
sell
(Special to The Financial Chronicle)
.
This story comes from a for¬
intimate of the late Bob
com¬
Department
saying
Taft
.
be
pleted for the most part by 1960.
backed
Anheuser Busch
com¬
Jacksonville, next Tuesday and
Wednesday, March 26 and 27.
Chairman
Coming,
probably
would be given the choice be¬
tween being made
Secretary of
Health, Education, and Welfare,
or of
being crucified, albeit by
the Comp¬
been
is
sound ways to
on
Richard Piatt, of Boston,
would
expansion
an
concrete
several
,
rapid liquidation.
Second
a
fruitlessly to encourage the
liquidation of this obsolete
postal savings system.
■
Economy in the Raw
how
Massachu¬
tual funds at the Roosevelt
Hotel,
to
reviving the lore of Alex Ham¬
bank, and few
a
smallest
offices
For
fall
existence which is dedicated
Since
savings accounts left.
'
more
ally-sponsored
arqas
banks.
troller General
inflation."
deposits
the Post Office De¬
or
Hamilton Papers
fairly
reach
bill.
partment says it is losing money.
The AF of L-CIO alone opposed
then the automobile has
brought
almost every one within
easy
grams
of
tivity
In its first and main volume,
the Federal Reserve Board staff
savings
$1 billion
invest¬
original reason
savings
was
that
postal
could
liquidation
a
years.
policy directed toward sustained
high and rising levels of ac¬
Stability
out
Liquidation will not begin until
ac¬
building and
•Deprecates Influence
Economic
of
Trust, Boston Fund
will present the second of
1957 series
of
seminar pro¬
its
Well, the committee voted to
report
second
many
to
particular to general
monetary restraint, is sufficient
without
shares
and other mutual investment
There
The
for
conditions,
national
the
then
obsolete for
in
a
government.
So from the standpoint of
pro¬
tection, postal savings lias been
That
the
consumer
area
for
setts Investors
/osing money on the operation.
Treasury favored the bill.
the Comptrollelr General
again renewed vigorously his
unan¬
stated.
Chronicle'
And
loan associations.
af¬
important
an
trust
ments in shares of
questioned
policy
supply.
must
it
would
amounts, up to $10,000
count, or the same for
of
monetary
"Unavoidably
Financial
The
through the Federal Deposit In¬
surance Corp., has come to in¬
sure the
overwhelming mass of
savings accounts in banks for
instalment
consumer
the total
changes
but
the
review
a
the ^ report
loans,
fected
ment
for
After
sources
loan
did
seem
comfort
trollers.
and
panies
Since
respect
one
'Commercial
First, any number of
people, especially immigrants,
were
alleged to distrust banks
Policy
only
of
reasons.
travel.
Monetary
Martin.
BOSTON, Mass.—Vance, Sand¬
& Company, principal under¬
writers
fron¬
Witness the recent
the
re¬
was
ers
hear what the
has to say!"
will apply, where it has not been
before.
issue
be¬
tiers" to which instalment credit
used
House
who
Present Seminar
was
likelihood
all
consumer
there
cause
White
aide
definitely
Vance, Sanders to
differ
hand,
in
that
will
growth
sponse
It is likely that Martin would
of
that
other
predicted
Jack
the
the
story
views.J
income."
to
justice.
matter of
a
durable
next
On
this
pretation from the nation's Capital
assuming
other
the
Sen¬
good
for autos
and
greatly from
Jack
poor
fThis column is intended to re¬
flect the "behind the scene" inter¬
the
under
motivation
Board's
subject.
the
on
If this conclusion is
of
member in
and may or may not coincide with
the "Chronicle's" own
for
the
and
sake
"no
sees
rate
overriding case
the growth
that
saying.
that
was
Board
as
now a
NOT
supporting obser¬
the
of
the
lated
Future Growth
also
it
senile,
quoted
a
the
standing of
politbureau,
ing recessions," it was observed
at another point.
subject,
the
on
"first
of
sort
a
silly,
intimate
goes
man',"
Mr.
inti¬
■
Martin, former aide to the
instal¬
consumer
credit,
encyclopedia"
as
collection
enormous
'There
old
of
Taft
••
ator and
fuel to booms; it has less often
been an aggravating factor dur¬
this
the
v
For
in¬
fairly into the Board's staff re¬
port on "Consumer Instalment
Credit."
Among other things,
be
may
think
you
asked
the Senator
stalment credit has been to add
perhaps
the
course
mate.
fluctuations, other factors have
been of greater Importance," the—
report said at one point.
read
This
do
Dulles?"
economic
with
associated
due
departure.
activity, but it has not been the
principal cause of such changes.
Although consumer credit has
been
In
discomfited Mr. Dulles took his
changes in the level of business
Securities
Square, Boston 9, Mass.
•
Telephone
HUbbard 2-1990
.
Teletype
BS 69
@FedFRASER