Full text of Commercial and Financial Chronicle : March 24, 1955, Vol. 181, No. 5414

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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CANADIAN INVESTMENT OPPORTUNITIES FEATURED

R 25 1955

The Commercial

Chronicle

Financial

Pat, Office

Reg. IT. S

Volume

New York 7,

Number 5414

181

Price

N. Y., Thursday, March 24, 1955

Stock Market Is the

We See It

"study" of Senator Fulbright to make its appear¬
ance so far is, so we think, the clamor that has
arisen for various and sundry controls to protect
the

Elder

"boom

government itself has foisted upon us all.
that nothing of conse¬

and

events

bust," but is merely

a

A winter view of the Canadian economy, noting espe¬

cer¬

cially the sustained

of

cause

In

protection against inflation, and cautions

a

as

effect of which has
Cites purchase of

which
the

At

emphasize that

not even the most experienced trader, econo¬
can
predict with certainty the
of the stock market. Whether

stocks

expected, of course, that there
such an inquiry

rise

(or should we
say excuses?) for more and bigger regulation of
the securities exchanges of the nation, particu¬
larly the two exchanges in New York City. The

Washington—this is a

of

ance

real

world.

enterprise capitalism. Canada,

past year witnessed progress in most of
of

areas

Canadian

finance,

statement

by

Mr.

Baruch

before

PICTURES IN THIS ISSUE:
Bond Traders

increasing

Bernard

Baruch

M.

a

lush

page

the Senate Banking
March 23, 1955.

Candid shots taken at the

$1.96

Latest report showed

billion,

Municipal

at

titanic

Bankers

Securities
telephone:

IIAnover 2-3700

CORN

EXCHANGE

the

Government

London, E.
West

13,

CHEMICAL

to

Continued

End

BANK
department

30 BROAD

ST., N.Y.

RESEARCH STUDY
"INVESTING
IN

St. James's Square, S. W. 1.
in India, Pakistan, Ceylon,

Branches

land

Protectorate.

Paid-Up
Reserve

Capital
Capital

£4,562,500

AGE"

ELECTRONIC

ARE NOW

Bond Department

AVAILABLE

description of

exchange business.
and Executorships
undertaken

:

Members New York

14 WALL

Bond Dept.

REQUEST

NATIONAL

Stock Exchange

OP THE

STREET, NEW YORK 5

34 offices from coast to

Teletype: NY 1-708

CHASE

THE

HARRIS, UPHAM & C?

OF NEW YORK

£3,104,687

Fund

The Bank conducts every

banking and
Trusteeships

ON

THE NATIONAL CITY BANK

___£2,851,562

BANK

CITY OF NEW YORK

coast

Imperial Bank of Canada

wm

Net

123 Years of Service

r irst

to Our

To

Active

getUAw&tf
Utility Bonds,

Preferred and




Warrants

Orders

Executed

Canadian Exchanges At

Exchange

BRIDGEPORT

PERTH

AMBOY

Electric Service Co.

Company of Canada

COMMON

Rights expiring April 29, 1955

On AH

Regular Rates

Telephone

We

offer

to

buy the above Warrants

and

Analysis

market.

upon

request

CANADIAN DEPARTMENT

Teletype NY 1-2270

Members N. Y. Stock Exchange
Stock

1955

Southwestern
The Bell

Rights at the current

T. L. Watson &Co.
American

expiring May 3,

Brokers

SECURITIES

50 BROADWAY, N. Y.

Dallas

Maintained

Banks and

CANADIAN

Customers

Common Stocks

<SotU/uve4t COMPANY

Markets

Dealers,

Commission

FIRST

THE

Burma, Aden, Kenya,

also

Public

30

Bonds

COPIES OF OUR NEW

C. 2.
Branch:

Authorized

bond

page

Municipal
W

(London)

Tanganyika,
Uganda, Zanzibar, and Somali-

on

State and

—■—

in

one

Pushing toward the billion dollar asset mark

and

Kenya Colony and Uganda
Head Office:
26
Bishopsgate,

C.P.R.
of the

corporations in North America.

60

making

Annual Dinner of the Toronto
and 40.

of INDIA, LIMITED

it

assets

Association appear on pages 34, 36, 38

NATIONAL BANK

month;

passing

each

producer of lead, zinc, silver, plus chemi¬

cals and fertilizers.

on

with

m

Slate and

commerce.

Smelting, 51% owned, continues as

DEALERS
U. S. Government,

and

Pacific, the largest privately owned

Consolidated

Continued
♦A

is

acres

Largely because of the crash

Currency Committee, Washington, D. C.,

industry

top—Canada's Billion Dollar

fronts. Its oil take from 12 million prairie

many

impression has built up that the stock mar¬
ket is the cause of booms and busts.
Actually, it is the
thermometer—not the fever. The stock market registers

56

toast

we

railway in the world, continues to advance on

of 1929, the

probably never heard of the NASD, and those
who have probably are not aware of the extent

over a

Club.

could bring un¬
throughout the

peace

demand

limited

thing unknown to

nation resplendent in prosperity, and de¬

Let's start from the

opening whole new vistas
of enterprise and investment, could
prove that large sections of the mar¬
ket are underpriced and other sec¬
tions
overpriced.
An unfavorable
turn in the foreign situation could
send securities tumbling. The assur¬

"study" of the Stock Exchange—but the old hue
and cry for further meddling in these more in¬
formal dealings in the financial community is
heard again.
Many of these politicians have

on page

the

opments

already under the

Continued

The

conditions, the actions of

the state of interna¬
affairs, the emotions of people
—even the vagaries of the weather.
Scientific and technological devel¬

rigid control and regulation of the Securi¬
Exchange Commission is of no moment;
some minds the remedy for too much control
more control.
Over-the-counter markets have
under attack in

by

tional

ties and

not been

fall is determined

a

governments,

most

is

or

a

you! (In Canadian whisky, of course.)

innumerable forces and elements, by
economic

by bureaucracies, and wherein

economy" is

tation of

businessman

or

years.

riving its dynamic growth from sound implemen¬

No one,

mist

got under way, would find reasons

to

as exem¬

people, it's nice to contemplate, and to

salute,

knows

one

no

too high today.

are

world beset

a

billion

helped make America great."

outset, let me

whether stocks

would be those who, as soon as

fact that these institutions are

earnings stablity of Canadian equities

"market

course

be

sector, the

plified in the tabular record of companies which have

against legislation that will curb "the adventurous spirit

being conducted with one eye (so we must as¬
public welfare and other upon the
1956 election compaigns.
to

every

paid consecutive cash dividends from 5 to 126

sume) upon

was

in almost

proven

stocks

individuals, but the danger is

evidently there and quite possibly could grow
with the course of such investigations as are now

It

progress

expanding excellence of its major corporations, and the

thermometer registering

been to drive the market upwards.

interference

governmental

or

a

Capitalism

have developed in recent years, the

will come of this demand for a return
policies of governmental management of eco¬

quence

nomic

predict it with

one can

no

Copy

a

judgments of multitudes of buyers and sellers. Lists a
number of structural changes in the stock market that

We still venture the hope

with the affairs of

course

prominent

Says stock market action is not

tainty.

Of Enterprise

stock broker
of stock market is determined by

factors, and

numerous

from the New Deal- and Fair Deal-like measures

to

the

former

and

statesman

asserts

public against evils almost inevitably flowing

which

M. BARUCH*

By BERNARD

Cents

Canada—Dynamic Domicile

Thermometer: Not the Fever

The most ominous result of the stock market

40

Canadian Investment Opportunities Featured

EDITORIAL

■As

iwwsrM"#l1

DIRECT

WIRES TO

Goodbody & Co.
MEMBERS

115

NEW

BROADWAY

NEW YORK

Dohixiox Securities

MONTREAL AND TORONTO

YORK

STOCK

Members

6RP0RA.H07I
Associate Member American

and

Stock Exchange

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

40

Exchange Place, New York 5, N.

Teletype NY 1-702-3

IRA HAUPT & CO.

Y.

WHitehall 4-8161

York Stock Exchange
Principal Exchanges

New

other

111 Broadway, N.
WOrth 4-6000
Boston

Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

2

The Commercial and Financial Chronicle

(1366)

The

Brokers, Dealers

For Banks,

American Boxboard

Security I Like Best

This

Forum

Central Indiana Gas

A continuous forum in which, each week, a different group of experts
in the investment and advisory field from all sections of the country

Central Public Utility

participate and give their

Concord

(The articles contained in this forum

Supplies & Equipment

ihey

are

Research

Gulf Interstate Gas

Investors Div. Services "A"

Members New York Stock

Metal & Thermit

The

capital

Illinois

Temco Aircraft

BOSTON

Boston,

Wires

5

to

Cleveland,

Chicago,

Houston, Los Angeles, Philadelphia,
Portland, Me,, Providence, San Francisco

the
of

Specialists in

Rights & Scrip
Since 1917.

fcftONNELL&fo
Members
Stock

in

|I20 BROADWAY, NEW YORK 5
TEL. REctor 2-7815

ceeding
Due

Dan River Mills

STMBER,TAYLOR & CO., Inc.

I

Va.

LD 39

TWX LY 77

This

situations.

strong fi¬

on

than

average

143%.

recognition

that

fact

been

the

plus"

These

glass

represents
interest in

which

situations,
as
having

are

assured
in
the

an

include,

right: (1) A lead¬

own

position

of

also does not
given to the

company

"three-way

a

in

manufacture

the

containers

bottles

and

by the food, drug, milk and

other

industries;

beverage

tubes, glass building blocks,

products.

(2)

A

one-third

inter¬
with an
Corning

est, or 1,050,000 shares,
equal amount held by

of

gain

is used

company

for

sulating

in¬
and

homes, automobiles
aircraft, etc.; textiles, used for
electrical
insulation,
decorative

certain

of

give

a

true

ance

sheet,

reinforcements

for

air

conditioning, heating and

derground pipe. The sales of this
company improved by about 135%

prospects

rently.

is

considered

highly

promising.

(3) An $8 million investment,

stituting

equivalent

an

terest with Emhart

the

in

producer

con¬

stock

in¬

Manufacturing

the

or

Corporation,

a

widely accepted

plastic bottle;

other

containers, films, sheet, rod, tub¬
ing

and

related

thermoplastic

products.
The

factor

in

lies

the

interests

in

adaption

connection

with

the

glass and glass variations and

their

relation

which

the

operate.

various

to

plastics, etc., in

respective

The

activities

Tele: NY 1*3222

$4.00

these

in

years,

1954,

with

somewhat

a

disbursement

cur¬

addition, the fact that

stock dividends have been paid
since
1937,
in
contrast
to
the

management's
would
be

previous

policy,

suggest that the issue may

logical candidate for a splitup or stock dividend in the near
future.
a

The

obvious

drawn

from

parative

conclusion

the

figures

the stock of

to

foregoing
is

the

be

com¬

fact

that

Owens-Illinois, listed

the New York Stock

on

is far

sold

at

peak of

a

companies

combined

undoubtedly

possibilities

research

not

up

J.

Manager, Research Department

Re-

Manager,

Low,

Bruns, Nordeman & Co., N. Y. City

Exchange

Singer Manufacturing Company

rities
list

most of

becoming

of

so

down

to

priced

under

equities

secu¬

is

-

narrowing

a

Among

the

remain¬

line

old

shares

on

to

the

unit best suited and must capable

machines,
electric

of

47

1951

are

in

and

Mobile, Ala.
wires

to

branch

our

offices

the

retail

1 the

JAPANESE

world

company's

home

SECURITIES

sewing machines, fans and vacuum
cleaners,
and
also
trimmings,
patterns and irons manufactured
outside

by

sewing
hat,

shoe,

garment
In

of Japanese

Call

plastic

addition

ing

facilities

promptly

to

parts

supply

placement

and

been

important

an

sistently
ary,

its

operations.

Yamaichi

Securities Co., Ltd.
Established

has
Home

and

profitable

SINGER's

for re¬

Tnis

repair.

write

or

tne

maintains large servic¬
which
enables
it

company

knowledge

potential.

tiaue,

and

carpet

manufacturers.

investors with vision—

investors with

principally

are

the

to

have unusual appeal

may

to

Industrial

concerns.

machines

supplied

Brokers

phase of
In Feoru-

111

1897

Office Tokyo—70 Branches

con¬

Investment

&

with

precision-designed minia¬

a

ture

sewing machine for children

called
sold

"Sewhandy" which will be

through

toy

partment stores

on

shops and de¬
a nation-wide

basis.

Singer Manufacturing and its
wholly-owned
subsidiaries
own
and

three

operate

sewing

Established

1856

H. Hentz & Co,
Members

New

ma¬

York

Stock

Exchange

American

Stock

J.,
Bridgeport, Conn., and Anderson,

New

Cotton

S.

Chicago

chine

in

plants

C.

Fans,

electric

motors

United

the

ditional
also

maintains

plant

in

Commodity

Singer

Board

in

and

other

Inc.
Trade

Exchange

exchanges

also
ad¬

an

where

N.

Quebec.

In
about

owns

Y. Cotton
NEW

it

Chicago
Miami

Exchange"Bldg.
4, N. Y.

YORK

Detroit

•

Beach

Hollywood.

Pla.

•

•

Geneva,

Manufacturing

•

Pittsburgh

Coral

Beverly

Gables

Hills, Cal.

Switzerland

Amsterdam,

Holland

Ltd.

ternational
which

Securities

through

subsidiaries

chines

in

sells

Great

Company,
wholly-owned
sewing
ma¬
Britain, Conti¬

and South Africa.
Singer Manufacturing has been
a
dominant factor in the sewing
machine industry throughout the

Europe

for almost

II

War
with

a

the

500
Over the

century. After

Counter

was

company

increased

competition
particularly due to excessive im¬

'

STOCK CHARTS

'

priced sewing ma¬
chines
from
Japan
and
to
a
smaller extent from higher priced
European units. Difficulties were

insurance
years,

of

low

in

licenses

some

South

import

American

where foreign exchange
shortages existed which situation

countries

shows

now

Exchange
of

of Scotland and
one-third interest in In¬

a

ports

Exchange

Exchange,

New Orleans Cotton

sewing machine

a

York

plants

and

Canada

Johns,
SINGER

Company,

nental

making

St.

Europe,
28V2% of
holds

produced
company

States

in

one

N.

cleaners and

are

The

cabinet

two

owns

Elizabeth,

vacuum

Finderne, N. J.
in

Bankers

Broadway,N.Y. 6 COrtlandt7*5680

1955, the company announceu
plans to enter the toy field

tendency to im¬
prove.
Furthermore, introduction
of a new low priced round bobbin
portable machine in 1952 and im¬
a

the

Sales

Tool!

Analytical

Aid!

Handsome graphic

industrials,

77

manual covering 338
utilities, 45 banks, 44

Weekly

cos.

prices

two

for

annual

ranges from
'49.
Earn¬
ings, dividends, capitalizations. One-line
description of each company's business.

Yearly subscription (6 bi-monthly
editions), $45. Current edition, $8.75.
WRITE

TODAY

-j-

OIC

other popular and

on

TO

.

.

.

0-T-C PUBLISHING CO.
11-F Bm St.,

Morristown, N. I.

en¬

to compete
Japanese
and

company

with

foreign

imports.

As

re¬

a

steadily

since

the

peak

the

few

last

years

SINGER has made great strides in
of

are

1954,

"slant

a

The

selling
high

66

in

1946.

Singer Manufacturing Company

new

marketed

were

MANU-

currently

modernization

higher priced sewing machines

Among the
SINGER

and

Over-the-Couiiter

Quotation Services
for 41 Years

in the home and industrial fields.

Henry J. Low

COMPANY.

in

sell

development

December,
75

Orleans, La. - Birmingham, Ala.

Direct

United

the

other

numerous

throughout

which

During

assets

is

6, N. Y.

NY 1-1557

laps,

reached in 1952.

book

share

Exchange
Exchange

electronic

in

stores

and

declined

be¬

current
per

HAnover 2-0700

New

products

and

Stock
Stock

sult imports from Asia and Europe

highs

and

of

world.

cleaners,

motors

outlets

bull

low

company's

vacuum

1,500

over

States

other

also

the

in

York

American

19 Rector St., New York

equipment for
the
bonding of
plastic
materials.
SINGER
has

are

low their pre-

and

the

effectively

selling sub¬
stantially be¬

market

manufacturer

machines

family and industrial sewing

abled

of

vious

largest

higher priced models in 1953

companies the

directly FACTORING

would

the

is

sewing
Among

provements

outstand¬

around 40 compared with the

which

the

valued

handful.

few

ing
ing

leading

fully

called

-

investment

the

New

Members

also encountered to obtain

and American Stock

The

Steiner, Rouse & Co
Memoert

faced

Members, New York Stock Exchange

the

conceivably be passed

J.

Dept., Bruns, Nordeman
& Co., New York City. (Page 2)

World

shares

of

100,

LOW

related to its particular
endeavor,

knowledge

Bought—Sold—Quoted

searcn

world

HENRY

value

turn

103% and

respectively.

which

"plus"

presumed community of

of




Plax

of

"squeeze"

Phone; Dl 4-4460

in

no

mere

Co.,

25 Broad St., New York 4, N. Y.

However,
figures do not

favoring

In

With

Exchange

about

picture of the bal¬
since securities with

liberal

more

in the past decade and the future

Members New York Stock

just

100%.

paid

were

the

ventilating systems, battery sepa¬
rators and pipe wrapping for un¬

Preferred

decade

a

these

against

as

growing plastics field, filters

for

Mills

for

issue

this

(Page 2)

1954

Exchange,
cheaper and relatively more
Glass
Works,
in
the
stock
of attractive
today from the stand¬
Owens
Corning Fiberglas Cor¬ point of assets, financial
strength,
poration,
a
leading
factor
in book value,
earnings, yield, di¬
research
and
development
of versification and
prospects, than
fibrous glass items.
The output either 1937 or 1946
when the

fabrics,

Indian Head

215%

time

same

approximated

tele¬

electric insulators and other glass

fast

Trading Markets

improved

the

At

$3.25

years.

have

vision

life Insurance Co. of Va.

capital

161.7%,

the

based

to

seem

used

Camp Manufacturing

same

was

compared
periods net

yield, a much more reasonable a marketable value of $91,160,705
price-time-earnings ratio on the (includes investment in Owens$7.05 reported for the stock for Corning Fiberglas) at the latest
1954 and per share average over year-end
were
carried
at
only
a
period, an outstanding
sales $12,800,855.
At
that
time, cash
and Government
record, and the prospect that new
securities, alone,
peaks will be established in suc¬ totaled $49,657,021.
Dividends of

ing

Commonwealth Natural Gas

the

In

latter

as

sales|exceeded 1937 by 267% and

higher

company's

Basset! Furniture Industries

P. Doherty

Thomas

other growth

future.

American Furniture

the

103%

200%

respectively; equity
per share, 118.2% and 55.7%, and
earned
surplus
by
350%
and

funded

a

1946.

to

than

more

And

by

working

appears

nances,

slightly

1937.

and

$50,000,-

promising
regarded

Trading Interest In

y''%:

by

is

the

bettered

underpriced in relation to numer¬
ous

side, Owens-

10 years ended Dec.
exceeded $106 million;
assets, at book value, in¬

from

amount

in

statistical

1954,

creased

shares and

Exchange
Exchange

Lynchburg,

the

On

total

3.8%,

contention

Stock

$2 per share per annum.

outlays for additions, re¬
placements
and
improvements

3,056,874

debt,

al¬

of

average

an

Illinois'

the stock, out-

standing

or

Louisiana Securities

Research
Upham & Co.,

Singer Manufacturing Company—

are

$30,067,613,

'■

106, to yield
to

Company—

Donerty,

Harris,

henry

during

close

poten¬

the fact that in a fiveyear period ended Dec. 31,
1953,
expenditures for research, devel¬
opment and engineering, totaled

31,

of

their

on

Glass

P.

New York City.

by

most

g

000

York

de-

column.

only

New

more

which

the

preceded

American

Owenspossesses

in the
neighborhood

Exchange

Dept.,

nor

That Owens-Illinois is not rest¬

forth

of

n

be,

to

tialities.

i

Teletype NY 1-40

Private

capitalizing

Presently sell-

1920

Member

PHILADELPHIA

Direct

Owens-Illinois

ing "on its oars" in the search for
additions to its line is set

of

this

intended

not

are

Alabama &

Selections

"new

of

merit,

average

readers

Corporation
Broadway, New York

particular security.

a

Their

sell the securities discussed.)

to

of

Exchange

Company

attention

New York Hanseatic

WOrth 4-2300

stock

Glass

serves

126

offer

Company

several attractive features of

than

Stock

as an

Dept., Harris, Upham & Co.,
New York City

Owens-Illinois Glass

Long-Bell Lumber of Mo.

American

be regarded,

to

THOMAS P. DOIIERTY

Foremost Dairies

Established

for favoring

Week's

Participants and

Thomas

Dan River Mills

Associate

reasons

Thursday, March 24, 1955

...

machines
in

recent

needle"

which
years

machine,

especially designed for home sew¬
ing, which has proved very popu¬
lar

and

sumers

is

enjoying

large

Incorporated
Established 1913

con¬

acceptance both here and

Continued

National Quotation Bureau
46 Front Street
CHICAGO

on

page

71

New York 4,

N. Y.

SAN FRANCISCO

\-

rolume

Number 5414

181

.

.

The Commercial and Financial Chronicle

.

(1367)

INDEX

Canadian Uranium Activities

Prospects

By A. H. LANG*

Canada:

—Bernard

Geological Survey of Canada

leral parts of Canada combined to
make 1954

most

a

significant

[for uranium mining.

year

Figures for

which

ate

and

re¬

ducing

be

published, but
it is clear that
the
t

i

produc-

o

was

n

greater than
in

pievi-

any

ous

be-

year,

1954

cause

the v

first

which

the

was

in

Eldorado

plant
Beaver

in

was

operation for

Also for the first

this

at

plant

shipped

ore

| properties
One

time, production
by

augmented

was

it

to

lodge

private

from

highlights

the

was

large-scale preparation for produc¬
tion at the Gunnar mine, where

| production

commence
in
Exploration at several other

1955.

to

is

properties in Saskatche¬
promising results. In
Ithe Blind River region of Ontario,
very large tonnages of relatively
low-grade uranium ore were inprivate

showed

wan

jdicated
plans

by diamond drilling, and
large-scale

for

production

[have

now been completed, with
first plant scheduled for op¬

the

in

eration

late

results

were

1955.

these

As

Energy

President

recent address that

uranium

ada will be

great

Mr.

of

of

W.

J.

Atomic

Canada, forecast

of

in

result

a

developments,

Bennett,

1957

Promising

obtained

also

districts.

other

in

a

by the end of

production in Can¬

more

than 12 times

II, that the annual gross

from that production will then be
about

$100,000,000, and that

nium

will

than

pljace

in

metal

production

gross

in

rank

ura¬

fourth

dollar value
in Canada.

Permits and

inactive

or

four min¬

reported only

a

dorado's

properties

large number of

explored,

be included

in

few

this

details

brief

re-

of

Dr.

Lang's remarks be¬
& Developers Asso¬

Toronto,

Canada,

March 8, 1955.
The Geological

Survey of Canada issues
dealing
with
prospecting,
with many specific areas and proper-

LaBine

ties, but it usually cannot give
by correspondence, etc.

U.

Cobleigh___.____

trucked

ore

property,

son

El¬

to

The

Essential
R.

in Dividends—Leo Barnes

Full

Banking's
Common

New

Fire and

as

Nesbitt-

and

Ore

Market's

Rockefeller

also

was

shipped

and

Much

to

Flaxman

Setback

A

Seen

Providing

by

Gunnar Mines Limited in prepar¬

its

ing
The

•

property for production.
pit was prepared for

Bull

18

and

construction

of

treatment

plant with

a

rated

1,250

a

day

well

of

tons
The

advanced.

airstrip

H.

Smith

Nashville

•

25

Industrial Relations in the Economic Outlook

.—Richard

A.

increased

ca¬

mine

Lester—

26

—Paul

E.

J. F. REILLY & CO.

Young

29

42

CANADA

re¬

DYNAMIC DOMICILE OF

had

ates to the value of

consecutive cash dividends from 10

deposit to $130,000,-

000, and that

contract had been

a

$76,950,000.

and

exploration

Underground

was

done at 11 properties in the re¬
gion north of Lake Athabasca, as

follows: Beta

Gamma, Black Bay,
Athabasca, Homer-Nu
Age, Lorado, Meta, National Ex¬
Cayzor

ploration, Nesbitt-LaBine (Eaglegroup),
New
Mylamaque,
Rix-Athabasca, and Uranium
Ridge
(Pitche
group).
Under¬
ground exploration was also done

second

a

tabulation

secutive cash

the

La

Jahala

Lake

property

in

A

Ronge region.

drilling was done on
properties in the region north
Lake Athabasca, and on four

of

Lake

Athabasca

La

and

Ronge.

pilot

plant

operated
of

property

was

completed

the

Nistowiak

at

La

Ronge

with

the

objective

low-cost

Our Brains Washed?

and

Steel Products

We

Bank

Stocks—

Insurance

and

and at

the

ressed

to

Dealer-Broker

From Washington Ahead of the News—Carlisle Bargeron

63

Funds—

About

end

Reporter

this

Public

surface.

—

Utility

begun,

1,800

The seventh

feet
level

developed in the Ace orebodies, and work was begun on
the eighth level. The openings on
seventh

level,

drilling from it,

and

diamond

showed the
on

page

The Market

.

.

and

.

Glens Falls

Schenectady

«

LIME COMPANY

61
64

69

You—By Wallace Streete.

Metals,

signed

an

2

____

The State of Trade and Industry

4

Washington and You

72

ore

33

Column

not

"At present
1

Drapers' Gardens, London,
land, c/o Edwards & Smith.

B.

DANA

Park Place,

HERBERT

D.

WILLIAM

Reentered

to

25,

ary

SEIBERT,

March

24,

Offices:

as

1942,

second-class

the

at

post

at

135

South

(Telephone

President

Salle

St.,

STate 2-0613);

in

States,

United

Territories and
Union, $55.00

Possessions,

Pan-American

Other

1955

La

depend

fluoride

ex¬

uranium from crude
on

uranium fluoride

matter Febru¬

office

all techniques for

pure

reduction

the
or

of

uranium tetra-

by calcium."

New

Memorandum
Subscriptions

of

Canada,

U.

on

request.

S.

Members

of

per

$58.00

year;

per

in

DAYTON HA1GNEY A CO.

year.

Incorporated

Countries, $62.00 per year.
Other

Thursday

3, IU.

tracting

Subscription Rates

Worcester
Other

has

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

9576

(general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.).

Chicago

Eng¬

New York 7, N. Y.

SEIBERT, Editor & Publisher

Thursday,

C.

ore

COMPANY, Publishers

2-9570

DANA

E.

Copyright 1955 by William B. Dana
Company

CHRONICLE

Reg. U. S. Patent Office

owned,

calcium in the U. S. A.

available this week.

Twice Weekly

100%

additional contract with
the Atomic Energy Commission to
enlarge I lie facilities of the $5,000,000 plant for the manufacture of
metallic calcium and high purity
boron free magnesium.
Company
is the sole producer
of metallic

16

__

Security I Like Best

Nelco

29

Offerings

Securities Salesman's Corner

The

NEW ENGLAND

*

Registration—

Security

to

28

Dominion

TELETYPE N. Y. 1-5

Chicago

Direct Wires

Philadelphia.. Chicago.. Los Angeles

,'5

Securities

Prospective

PL, N. Y.

55

Exchange

•

.

Securities

Securities Now in

*

Continued

May

Deepen¬

was

of

on

40 Exchange

22

Governments

of 1954 had prog¬

depth

Bankers

Reporter's Report

Railroad

a

and

more

Teletype NY 1-1825 & NY 1-1826

8

_

Bank

in

securities

MACKIE, Inc.

HA 2-0270

58

Notes

News

trading markets

over-the-counter

250

&

14

NSTA

Request

on

Singer, Bean

8

22

Our

Properties

than

72

Recommendations—

Einzig: "Will the British Bank Rate Check Inflation"?

Mutual

maintain

49

Investment

was

Stock

57

Bookshelf

Businessman's

Prospectus

Eng.

Cover

Our

ing of the Fay shaft

the

*

(Editorial)

See It

As We

providing
on

Films, Inc.

Hycon Mfg. Co. Common

71

Regular Features

treating the

nearby properties.

Elec.*

8

(Boxed)——

Wilfred

pegmatitic material found

Atomics

Diesel

Guild

Nadler Hints at More Drastic Credit Curbs
Are

Observations—A.

of

of

means

City

Standard Uranium

Uranium

Mines, for further tests of a new
process devised by the company
a

Consol.

Indications of Current Business Activity

between

A

51)

Coming Events in the Investment Field

Diamond
50

page

(Table I, page 33)
with respect to con¬

dividend payers from 5 to 10 years.

Ace

on

(Table II,

Basic

126 years

to

Philadelphia &

Lake

Dynamic Domicile of

arranged for delivery of precipit¬

of the

to

Salt

ENTERPRISE CAPITALISM

Enterprise Capitalism" deals with the investment opportunities in
Canadian securities and includes a tabulation
showing the banks
and companies listed on the Canadian
Exchanges which have paid

value

Teletype: NY 1-4643

wires

Direct

Article starting on the cover page "Canada:

estimated

gross

Broadway, New York 4

DIgby 4-4970

was

The
company
further drilling
the

a

Uranium Ore Developments in the Algoma District of Canada

was

ST., NEW YORK 4, N. Y.




20

_

building, of

the

near

completed.
ported that

York

•

Stylon Corp.

the Stock Market Level

on

Markets—Roger W. Babson

WILLIAM

Boston

Maule Industries

15

:

open

mining,

an

A Broker's View

Every

Albany

Year's Best Buying

in Housing as Well as the Stock Market

Boom

PREFERRED STOCKS

TELEPHONE HAnover 24300

Higgins, Inc.
14

.

—Marriner S. Eccles

—Winthrop

1955.

accomplished

was

Spencer Trask & Co*
BROAD

13

Casualty Insurance Investments

Opportunity—Bradbury K. Thurlow

REctor

25

Chesapeake Industries

12

Look—David

Stocks

FINANCIAL

New

Associated Foods

Jacoby__

—Barnard

25

Members

4-6551

12

Employment Be Achieved Without Inflation?
H.

Published

i

WHitehall

11

Qualities of the Security Trader

Meggeson

—Neil

from

plant

Beaverlodge early in

additional

specialized in

Telephone:

10

Is Not to Be Disputed"—N. D. Young—

The COMMERCIAL and

have

9

WALL STREET, NEW YORK

production,

properties.

advice

For many years we

Obsolete Securities Dept.

6

mined at the Consolidated Nichol¬

publications
and

6
.

"Our Dignity

The Coming Boom

marked the

Rix-Athabasca

the

below
♦Summary

fore the Prospectors
ciation
Convention,

year

Beaverlodge

Eldorado

Because of the

Demand—Frank Rising

bring

10

several

at

private

of

in the form of

little work.

can

The

beginning

and

ing
permits
from
the
Atomic
Energy Control Board were in
force. However, about half of the
holders of
Exploration Permits
were

made

were

Athabasca.

of

At the end of the year, 300 Ex¬

ploration

Oil—Ira

obsoletes?

back—ALIVE!

you

4

The Business Outlook—Charles T. Broderick

Important

—

privately-owned properties, main¬
ly in the region north of Lake

as

income

Stock Market

in the

Stake

Fairless

F.

Guaranteed Annual Wage

Provincial
on

mentioned by

are

Companies'

of

Our cash will

99

exploration

Properties

advances

at the end of World War

as

.

pacity

in the district.
the

of

D. 0. A.
because

3

:

New Era in Mining and Prospecting—Robert S. Palmer

Can

Private

at

full year.

a

Cover

SASKATCHEWAN

mines

not

may

I

The

J.

of pro¬

Baruch

Lang.

Steel

t

name.

ore

M.

—Benjamin

properties

underground

reported,

were

serves

Lang

The

done, or for which immedi¬
plans for underground work

was

prod uclion

Dr. A. H.

those

Only

H.

—A.

Lang describes developments in uranium production in
Canada during the last year, and gives data regarding the most
important mining activities in various Canadian areas. Reports
on the most recent discoveries of uranium
deposits. Reveals
that at end of 1954, 300 Exploration Permits from the Cana>
dian Atomic Energy Control Board were in force.
view.

AND COMPANY

Cover

Canadian Uranium Activities in 1954 and Future Prospects

Dr.

sev-

Capitalism

Enterprise

of

page

Stock Market Is the Thermometer: Not the Fever

Chief, Radioactive Resources Survey

Important developments in

Dynamic Domicile

ilCHlinSTfl

■"

Articles and News

In 1954 and Future

3

Bank

and

75 FEDERAL

Publications

Quotation

Record

—

Monthly,

BOSTON

STREET

10, MASS.

$37.00 per year. (Foreign postage extra.)
Note—On

the

rate

eign
be

of

account

of

the

fluctuations in

exchange,

remittances for for¬

subscriptions and

advertisements must

made

In

New

York

funds.

Telephone
Liberty 2-6190

A. T.

&

T.

Teletype BS 596

4

The Commercial and Financial Chronicle

(1368)

Now

The Steel

Companies'

that

problem, of

would

present

if it

course,

sible, under the tax
the

cover

Stake in the Stock Maiket

/f

re¬

through proper de¬
but as the law now

preciation;

stands, that is not allowed.

which

1954

successfully for the consumer's dollar in the steel market, but

in

must also

commend

bid

successfully for the investor's dollar in the secu¬
market, Mr. Fairless stresses the large amount of capital

third billion dollars

annually.

one-

feasts.
in

and

Stresses low stock prices as cause

the

selling steel. I

market

not

am

I

operator.

breathlessly

at

business of making

ticker-tape

terial

the lunch

other

at

hour.

A

have
i

c

point since

1

a

I

d

n

no

an

z

have

that

constant

qualify
a n

me

favor

as

i

expert

ized

ques¬

tions to which
this

Commit¬

tee

has

ma¬

sponsibilities

my

of

market

Just

our

Corporation, I

success¬

fully for the consumer's dollar in
steel

market,

be able to bid
investor's

it must also

so

successfully for the

dollar

in

the

securities

In the steel

market, its products
compete not only against those of
than

steel

100

other

important
also against

producers, but

other metals and materials

many

which

are

currently

not

of

but

national

our

defense.

obligation of the steel in¬

nation

in

peace

in

or

war;

anticipate, to the best of its

ability, the future demands which
will be made upon it by our grow¬
ing economy. It has successfully
met this obligation
in the past;
and

it

must

always do

in

so

the

future.

Steel Companies Require Large

offered

capital

behind

as

steel

each

Today,

plant

unit

if

of

agency—both

and

private

govern¬

which

—

is

less

Works, and if

you

necessary new sources
as

have in

we

find

of iron ore,

Venezuela,

that it costs at

build

provide the

single ton

you

least

will

a

$300 to

of

material

raw

resources

and

this cost in future years.

of

Fortunately, however, it is not
always necessary to start from
scratch; so not all new capacity

the

American

interest
sound

in

U.

S.

can

I

and

So

preservation

properly

where

Steel

investor.

deep and abiding

the

and

markets

a

the

of

conducted

securities

of

other institutions

be

freely and openly traded.
should add further,
perhaps,

costs that much.

Fund is

curities
shall

a

regular purchaser of

on

not

Steel Pension
se¬

the

Exchange; but I
attempt to burden you

But

keeping this
heavy investment in mind, let us
look

for

moment

a

of

Mr.

Fairless

before

the

U.

S. Senate Committee on
Banking and
Currency, Washington, D. C., March 21,
1955.

the

situa¬

dustry today.
Its present ingot
most

126

useful

average

facilities
Some

capacity is al¬
tons; and the
life of all of its

million

is

will

reckoned at 25 years.
last

longer

and others not that
^Statement

at

tion which confronts the steel in¬

that in the normal conduct of its

business, the U. S.

the

country will

million

next

25

the

has

risen

present

steadily throughout the

century

if

and

it

con¬

in the future

so

as

it

has in the past, we are going to
have to add 65 million tons to the

ingot capacity of the steel indus¬
Now what does that
in terms of capital expendi¬

Well,

of course,

no one,

can

and certainly I am not going

say;

to sit here and

and-fast

give

venture any hard-

predictions to

25

next

I

the

cover

however,
the simple arithmetic of

years.

you

the

situation

and

leave you

conclusions.

can,

it

as

stands

today,

to draw your own

So let

put it this

me

way:
In the

past nine years, since the

end of World War

II, the steel in¬
dustry has carried out the greatest
expansion program in its history.
It has enlarged its ingot capacity

than

long; but

the next quarter century,

dustry

must be

that,

to

place its plant completely.

on

of its facili¬

some

A

Third

of

Billion

a

Dollars

New Capital Each Year

than it

billion dollars

a

able to obtain

was

tization.

That

additional

is

the

capital

it

more

amor¬

ours.

In

saying that, moreover, I am
making no provision whatever for
any
future inflation which may
occur;

nor

possibility

and

war

sudden

a

I

am merely
presenting, as
said, the simple arithmetic

I have

of

of

of expansion under forced

program

draft.

I allowing for the

am

steel

the

on

basis

of

present

costs and past experience.
So

re¬

our

this:

problem boils down

Where

do

get this

we

billion?

a

to

two-

Where is this

additional capital to come from?

There
sources,
must

—

SOLD

—

Federal

a

more

realistic

depreciation

laws; or it must
higher
prices
and

profits to reinvest in the
business; or it must come from

the
now

sale of stocks

or

bonds.

Or it

of course, come from a com¬
bination of all three.
may,

Available

on

Request

Looking back

on

the past again,

we

67 Wall Street

New York 5,

N. Y.

find

has

JAMES M.TOOLAN & CO.

consistently met

of

its




2-9335

Bell

Teletype: NY 1-2630

that

capital

the

steel

needs

industry

good part
through the
a

reinvestment of earnings; and pre¬

sumably it will continue to do
—as

Telephone: HAnover

at

preceding

But

it properly
we

also

the
in

first

time

were

in

22

at the

months,

the

year.

annual

an

Dun

&

since

rate

of

Bradstreet

39

for

each

"Reference

January 1954 and

and 58 in prewar

10,000 enterprises listed in the

Book."

compares

This

rate

the

was

with 41 in February

a

lowest

year

ago

1940.

General industrial recovery is pushing the 1955 steel market
toward a demand-supply crisis and producers are
doing all they
can to cope with it.

Signs

are multiplying that the surging
economy is gaining
strength, according to "The Iron Age," national metalworking weekly, this week. The pickup is reaching into new in¬
more

dustries

and

generating additional steel demand which is

inten¬

sifying competition for available finished products.
More

it

consumers,

adds,

paying

are

full

warehouse

price

for

relatively small tonnages due to delayed mill deliveries. The
mills, in turn, are running into shortages of shipping space. Lack
trucks has

piled

up

Others

So-called

warehouse

steel

6,500 tons of finished steel at

level

one

mill in

experiencing similar difficulty.

are

brokers

are

receiving

Offering

prices

inquiries

more

are

mounting

for

toward

for

comparatively large tonnages and so-called
secondary material has practically disappeared from the market
due to

upgrading.

The demand pattern has taken on aspects of a chain reaction
with automotive serving as the trigger. Continued high consumer
for

cars

indicates

a

strong
an

automotive

auto

push

for

steel

strike in June, states this

Automotive

buying in turn is having a strong impact on other
including the car industry's suppliers. Aggravating the
picture is a resurgency in buying for farm, appliances, construc¬
tion, oil and gas and pipe line projects. Even the railroads are
becoming more of a factor.
Significantly, full potential in some industries is yet to come.

consumers,

.

Construction, farm, pipe line and railroads for example.
Meanwhile, the outlook for third quarter business is growing
stronger. More
ness.

Producers

are trying to place third quarter busi¬
resigned to fairly substantial carryovers

consumers
are

now

from second quarter on some products, concludes "The Iron
Age."
Records were toppling last week as United States and Cana¬
dian truck manufacturers turned on steam to keep up with
pres¬

ent sales and

anticipated spring marketing, stated "Ward's Auto¬

motive Reports." It noted that last week's
rash of new records as follows:

scheduling revealed

a

(1) U. S. passenger car production—176,553 units against a
previous high of 173,482 during Feb. 14-19, 1955; (2) Combined
U. S. car and truck volume of
201,339 units, compared to the pre¬
vious peak of 196,348 set in the week
ending June 24, 1950; (3)
Canadian car output of 10,104 units, which will erase the mark of
9,707 set last week; (4) Combined U. S. and Canadian car output
near
186,657 units and (5) a new combined U. S. and Canadian
of

under

larger

President's Report to Stockholders

For

than

comparable period of
Although they were 5% fewer than in Feb¬
1954, when there were 926 failures, they nevertheless ex¬
ceeded the toll in any other February since 1942.
The rate of failure, according to Dun's "Failure
Index," was
the

numerous

ruary

and truck record of 212,523 units, bettering the current mark
205,334 reached in the week of June 24, 1950.

The strong United States production has placed
industry con¬
cars and trucks so far in 1955 almost 37%
above the

tax

from

come

QUOTED

of

of

car

from

come

treatment
the

BOUGHT

only three possible
far as I can see. It

are

so

less

were

demand

in order to keep pace with the
foreseeable demands of this grow¬

ing nation of

eco¬

manufacture

Dipping 7% in February to 877, business failures
casualties

through the first half barring
trade authority.

nearly twice that much, each
for the next quarter century,

year

the

and

highest weekly level.

lowest level since last October.

of

had

find every year—a third of a bil¬
lion dollars!
But at present day
construction costs, it will have to
find

record

in

to

amount

has

second

premium-priced material.

through

depreciation, depletion and

the

at

was

paperboard (a reliable index of
new

a

California, New York, Illinois and Washington. In each
2,500 or over.
In the previous week, ended March 5, the total of workers
drawing jobless pay dropped by 49,900 to 1,796,500—substantially
below the 2,200,600 a year earlier. Some 42 states shared in this
drop, the agency noted.

of

Yet in each of these nine years,
on the average, it has had to
spend

third of

attained

by unemployment compensation insurance in the week ended

came

of

thirds of

LUCKY D URANIUM MINING CO.

activity)

the Midwest.

over

the in¬

prepared

tax law

in

state the drop was

try by 1980.
tures.

peak

400 or 27.5% below the January average of
346,700. For the first
half of March, the average came to 229,900.
In the March 12 week, the biggest declines in new claims

Moreover, we know that
per capita
demand for steel

tinues to do

production

ment

increase

these

in

all-time

pay, reflecting layoffs, fell by 21,100
during the week to 219,400, the department's Bureau of ErhploySecurity stated. This compared with 310,600 a year earlier.
The weekly average of new claims in February came to
251,-

popula¬

years.

a

seeking the confidence and favor
clearly, I have

that

the

New claims for jobless

ties.

scratch, as we
recently did in the case of Fair¬

working capital. Nor is there any
practical prospect of a decline in

and

mental

the

fast.

a

from

prise

in

of this

217

pro¬

ties,

And

tion

indicate

under

March 12.

Estimates of the Federal Census
Bureau

the

build

you

ered

and

by 34 million tons; and during a
the industries I part of this period it has been
permitted to
use
the
so-called
can think of, very few indeed re¬
quire such a large investment of "rapid amortization" provisions of

the offerings of every other enter¬

steel.

is growing

economy

slightly

The United States Department of Labor this week reports that
of the 48 states showed a decline in layoffs of workers cov¬

40

must

all

among

financial markets, the securities of
U. S. Steel must compete against

for

It

nation.

Capital

But

wholly-in¬
tegrated new capacity, complete
with all necessary finishing facili¬

substitutes

the

the

only

automobiles

still, of
if it is to fulfill its obli¬

as

mean

of course, is a basic es¬
only of our national

Steel,
sential

duction.

market.

more

of

way

company.

be able at all times to bid
the

describe

by

and to

United States Steel must

as

to

try

this

these,

welfare of

I

briefly

re¬

the steel market;

and

of

if

the

of

for
in its way, is of
vital importance to the
continuing
each

certain

dustry to meet the steel needs of

course, have a direct and
interest in both the stock

active

a

as

the

in

duties and

United States Steel

do,

t

industry

background.

life

u

and

for investor

special¬
its own; and I
be helpful to the

may

very

It is the

Chairman

as

them

attention.
B

performance of

it

jor part of its

Benjamin F. Fairless

face

Committee

de¬

voted the

does

I

problems of

think

teeh-

nical

steel

the

nomic

stand

the economy grows,

to

that

cannot

and

Last week the output of

in

or,

—

to

any

the keen

competition

—

whole

n

discussing the
many

of

field

mentioned—in

knowledge
would

other

the

time

March, 1953.

just to keep

intact

grow

in

adequate return upon them.
in

The upward trend of industrial production for the nation a
whole continued to hold in the period ended on
Wednesday of
last week. It was about 9% above the level of last year at this

is

plant

Failures

a

on

gations

long-range investor who is

But

d

e

industry

heavy drain

steel
a

Index

earnestly

your

resources

it

course,

seeking security for his funds and

spe-

i

those

respect from

present

But

problems

our

capital

its

this field do not differ in any ma¬

hang

not

do

the

over

this

stock-

a

I

Industry

Production

Business

point

other words, just to stand still.

discussion of

any

the

its

of debt financing.

present with

and

to

going to suffer

widely, and in last quarter cen¬
tury the industry has experienced several "famines," but no

am

it

corrected,

capital exceeding

Says public confidence in steel

securities issues has fluctuated

I

detail,

some

this

on

attention,
gentlemen, because unless and un¬
til this deficiency in the law is

Estimates steel industry in last

net amount of new

a

touches

Trade

Price

Auto

and

supplemental statement refer¬
ring to our Annual Report for

Pointing out that steel companies must not only be able to bid

required

Retail

Commodity Price Index
Food

a

required in steel production.

Output
Carloadings

State of Trade

I have

Production

Electric

already filed with this Committee

Chairman of the Board, United States Steel Corporation

nine years

Steel

The

of

cost

these facilities

By BENJAMIN F. FAIRLESS*

rities

Thursday, March 24, 19

no

were pos¬

laws, to

replacement

...

so

should, I believe.

find

that

Continued

it

on

has

not

page

50

struction of
same

1954 pace

(1,490,080). Sometime

unit of the year was built.

on

Friday last the 2,000,000th

The corresponding

1954 car or truck
April 16, 1954, almost a month last.
addition, General Motors' program the past week called for
an all-time crest of
86,529 units, up slightly from its mark of 85,039
reached during Feb. 14-19. Included in the past week's count is
built

was

on

In

a

record Buick

weekly turnout of 18,250 cars.
Saturday work is a vital factor in the General Motors schedule,
is at Ford Motor Co. where 18 final assembly plants were
booked for six days last week.
Chrysler has Saturday car pro¬
duction on tap for all divisions, except Dodge.
Dodge truck output, meanwhile, was up almost 40% the past
as

it

week from last week's level.

schedules
•

as

Chevrolet and GMC also had higher
they shook off changeover problems and contributed

Continued

on

page

62

Number 5414

181

olume

.

.

The Commercial and Financial Chronicle

.

(1369)

have

characteristics.
Then

Observations.

there

too,

allusions

shot
•

•

stocks,
Further

NOT

the

QUITE SO "FRIENDLY'' PALAVER

is

arily

—

Chairman

To

ulbright:—his Committee's Stock
arket

Study

vhether

is

not

inquiry

an

the
is

of

too

igh.

—

the

et's

present

i

political

another

1929,"

gainst

Re-

iterated

references

ublican

con-

idence

and

Wilfred

A.

Member Bush:—

Committee

fundamentally

an

instrumen-

nerability to
level

ional

whatever

To

legislation.
Demmler

Chairman

egard, since
rder

of

the

no

have

the

f

we

would

end

other Committee

the

rs:

vehicle

choice

a

—

substan-

badly-needed

the proceedings).

irection to
To

have

the

supplied

ially

for

the

technical financial ques-

on

ions.

opportunity
o
gather some headlines about
hat ever-glamorous Wall Street.
press:—an

the

To

politician:

ent for high-class

inding
erest in

bull

a

— an
instrumud-slinging;

with

himself

vested

in-

bear market.

or

investor:—a

To-the

-

chance for

ationalizing his conclusions about
he

market-place—pricewise

hart

though

pointing
out
Chairman
Fulbright's
i r r e 1 evancies
and
inconsistencies, he

and

the

to

hart

Pot-Shots at the Capital Gains

reference to

vast technical

ance

tin's

ignoring

Chairman

Board

masterful

and

Mar¬

complete

problem. For

exam¬

by

qualitative
tive

—)

of

well as quantita¬
the capital gains tax
as

getting their edu¬
cation in pot-shot discussion in
support of individual proposals.
This question, with its numerous
question,

facets
and

cal

of

on

the

Treasury

the market, with its ethi¬
connotations, and with the

on

in
other countries, for adequate dis¬
cussion
surely
depends
on
the
digesting of the most voluminous
material rather than on the parlor
its

of

counterpart

experience

drastic—and in this writer's opin¬

only done something in the

to

of

apply margin control varyingly to

is

unworkable

ion,

over-all

an

proposal

—

rather

issues

individual

basis,

was

than

is

a

contribute to in¬
question repeat¬

the trouble

"education" to
the public can
come
from
this
highly superfi¬
cial handling of these questions?
And
what
genuine
difference
whether the spirit is "friendly"
possible

Committee

not?

or

both

or

shared

on

Senator

"Times"

York

to

of

answer

space

to the Committee's

published

(and

Feb.

on

were

17), that a

be wrong

then,

as

correct.

pessimistic—

or

be

to

any

Irving

or

Fishers

market's

Taussig, Day Adds
(Special to The Financial Chronicle)

Ques¬

ST.

in this
white¬

washing result to the Study might

edly put by rote by Senator Rob¬

is

—

Richard

affiliated

now

speculation.
In
de¬
fending himself against the Cape-

in

Olive

centuating

Street,

members

of

Midwest Stock Exchange.

Administra¬

the

tion; and his coupling of "doom"

We

prophecies to the Democrats (and
their sister Communists)
as
the
braith.

bearish

are

pleased to

Gal-

Professor

announce

that

<8. 8facco

;

A

popular syndicated financial
columnist
shouts
that, since
a

study about the market rise must
be meaningless,
the hot ^subject
is his

has been admitted

pet worry about "busi¬
ness
raiding."
"The pay dirt
for this inquiry lies in the con¬

a

general partner in

our

firm

own

.

trol

as

.

grabs—the

.

raiding

by

Mr. Sacco

to¬

joins Ifalter If. Cruttenden, Jr. as our

day's fast buck operators."

public:—

general

partner

with

a

membership

on

confusion.

And

Through these partners

typifying the horse-back
"study" and "educa¬

second

the Midwest Stock Exchange,

we act as

floor brokers for several

nature of the

tion"

Pervading Plans

The

and

to

journalists—with

even

put

And (3) it has necessar¬
ily, under the circumstances, given
grind.

the

most

superficial
highly complex and

cursory

treatment

to

and

Irrelevancies

above,

or

not

Container Corp. of

RJB

R. J.

CSB

Chic. So. Shore & So. Bend R. R. Common

CXC

C & C Super

HIB

Hibbard, Spencer, Bartiett Common

KMB

Kimberly Clark Common

ML

The Glenn L. Martin Co. Common

IDC

Industrial Development

Olin Mathieson Chemical Common

SRY

Standard Railway

OLM

America Common

his

that

declares

persistently

Fulbright

Committee

is

"develop¬

In addition

ing facts which might be impor¬
to
the
American
people."
what

conclusions

we

act as

as

"facts"

irrespective of what the doings are

far-reaching questions, are impos¬

HIL

Heileman

really about, surely there was no
reasonably direct
relevance to a Market Study in

sible to discern.

TRA

The Trane Co. Common

ing "all

demonstrable

James

As

of

over

question

sistently

the Congress

term with

zations, on
the

economy

through

industry's

spread the benefits of
automation to the public in the

"failure to

shape of lower prices and to work¬
ers
in higher wages and shorter

hours";
ganized
educate

in his citation of or¬
labor's use of funds to
European workers about

or

the value of labor-saving devices.
Nor

have

persistently
on

the

line

tendencies

Chairman Fulbright's

recurring

questions

of possible monopoly
and

alleged

product

Peabody Coal Co. Common

TYL

'

Peabody Coal Co. 5%

Trav-Ler Radio Corp.

Common

adequate
con¬

his 10-minute
practically each witness,

uses

up

asking about the effect of institUT1
tional buying. To a topic requiring
the most complete and thorough

\Ve invite dealers and

professional investors to use our facilities,

expanded to provide better service to the industry

and to the public,

research

project, the replies here
be confined to
the highly superficial.
In a pri¬
vate interview with this writer,
the
Senator readily agreed that

must

the

necessarily

CRUTTENDEN

by important benefits, such as sat¬
isfying the Committee's own stated
aims
of
reducing the markd's

speculative

the workings of the stock market.

for

tuting
the

elements

informed

by

buyers

substi¬
holding

long-term, and supplying

209 S. LaSalle Street

Denver

Milwaukee

Grand

&

CO.

Exchange & Other Principal Exchanges

Members New York Slock

assumption of "the
need for remedy" of institutional
participation is counter-balanced
alleged

over-pricing in the automobile and
steel
industries any bearing on




without

Senator Lehman

discussion,

Carey, the Secretary-Treasurer of

of Industrial Organi¬
the potential trouble to

Preferred

PDY
PDY

Brewing Co. G. Capital

example of the broaching

an

a

Rogers

in

in

wander¬

discussions, so brief and

Frank E.

these

with the future of stock prices, or

by

co-specialists with

John IV. Billings

possible to
from

American Investment of III. Common

here

Common

Equip. Mfg. Common

Cenco Corp. Common

AMT

ruminations

Corp. Common

limitation.

the place," and so
cursorily touching on intricate and

the Committee is reallv concerned

the

Reynolds Tobacco Co. B. Common

CNR

CNC

enumerate

whether

specialists in the following stocks:

The conscientious Chairman

But

(1)

are

tant

widely-ramified questions.

On

organizations, and

to margin-boss

10-minute

tioner's

an axe

other

Senator Robinson's ques¬

was

tion

William
McChesney Martin, Jr.: "Isn't spec¬
ulation bad; and if you don't think
it has suffered from three main
so, why did you raise the margin
flaws:—(1) It has wandered far
requirements to 60%?"—with Mr.
afield from the framework of any
Martin replying that this involved
central point of inquiry.
(2) It
a
long story, from which he and
has been constantly exploited as a
the Senator quickly found them¬
fine vehicle by those — including
selves caught short in the ques¬
witnesses, Committee questioners,
Directly considering the Discusion itself, one must conclude that

Chicago 4, Illinois

Rapids

New York

DEarborn 2-0500

Indianapolis
Omaha

R.

with

Taussig, Day & Company, Inc., 509

have the unfortunate effect of ac¬

ertson, often with no attention
paid by him to the answer.

LOUIS, Mo..

Mowry

linking

upward

"confidence"

of

14

takes matters
of the
movements to

his

in

more

yesteryear?

himself persistently
as

as

bankers and professors

assumed

Mitchells

with the point
and contained in our

us

in

forecast

valuable than those of the Charlie

Ful¬

March

be

disagreement

made by

to

market appraisals of the

are

today—optimistic

invalid

bright.
Edward H. Collins, the
columnist, based his article in the
New

and

phenomena,

respected

another

by

as

signifi¬

witnesses,

interpret

to

likely to

Why

About

conclusion, involving a basic mis¬
conception about the forecasting
process,

the

always and including the present,

Conclusion

about

word

time,

of the 1928 go-ahead is that

market

Expert Inquiry
A

forecastable

was

and

authoritative

trying

:.yv^;;c;:r<o 5

False

fact

cance

the

as

A

mar¬

But the real point of that 1928
inquiry seems to be just the op¬
posite of the conclusions drawn
by Collins-Fulbright thesis.
In¬
stead of adopting the premise that

time.

this

way

prevention," Senator Fulbright
as saying, "they might

quoted

ket debacle."

thrown out by

at

1928 had

have lessened the 1929 stock

on

necessarily

left hanging in the

tionnaire

tipsters

the brokers' loan situa¬

over

tion. "If those people in

are

effects

the

ple, witness Ferdinand Eberstadt's

the

Again, the inquiring Committee
members, necessarily ill-informed
on
the very wide ramifications-

attacks, Senator Fulbright
Friday
cited
Mr? Collins'

last

statement of the exigencies of that

situation—quite

Reserve

What

stability?"
Cape-

shotty"

-

references

a similar study made
Banking and Currency
Committee's study in 1928, with
the resulting authoritative reassur¬

margin

tions

power.

reactions here.

Senator

the

Superficiality
the

to

eneral

to¬

in

be

may

enerally.
And

for

Axe-Grinding
Correct

over-

because

"pot

similarly

been

air after being
him. Likewise his
and the then alleged permanent cursorily broached suggestion for
extinction
of
investor
buying relaxing the short-seiling restric¬

"Do

somewhat

the

To

and,

poised

is

higher levels.

afield,

Mem-

rying out of pet economic ideas;
nd for kibitzing breezy bull sesions

ward

value

real

reasons,

purpose

pointed out,
he appearance of Mr. Demmler
t the Hearings' beginning instead
(as

collapse—as opposed

a

reflects

in that
legislation is in

serves no

fore¬

the

to

re¬

to the contention that the market

ality for the suggestion of addi-

EC:—it

similarly

and

stalling of a crash, really imply a
forecast, in assuming that the pres¬
ent state of the market spells vul¬

May

rosperity.
To

following

press

i b e

t is

stocks,

\ Tax

way

r

t

a

clock

automobile

an

hear

possible

Secretary Humphrey's testimony,
"I am willing to take the criti¬
cism, if by so doing we can avoid

Fair

a

eal

General

isn't

it

key remark to the

level;

d

n

of

Curtice

of gentle reminder to
Senator Fulbright, regarding his
protestations against concern with
the market's position:—even his

mar-

rice

inquire

ventured to

whether

develop

By

leveloped into
questioning
f

neces¬

alleged

the

over

of

that works.

it

least

at

Committee's

President

to

Member

apehart:

Virginia)

Motors

To Commit-

as

the

of

sarily limited available time.
Senator
Robertson
(Democrat
of

narket

ee

they certainly have occupied

much

this
least

of the
paralysis of demand by confisca¬
tory
personal
income
taxation
from adequately wealthy buyers,
supply

WASHINGTON

of

markets, the hue and cry custom¬

ABOUT THIS AND THAT
And

sinister

a

develop at
that
during

reminder

of

the market.

exploration

might

thought

pot¬

scarcity

influence in inflating

By A. WILFRED MAY

the

are

to

implication

by

And

investment

constructive

other

5

Lincoln
St. Louis

the

e

(1370)

The Commercial and Financial Chronicle

Government

lew Era in

Mining and Prospecting
By ROBERT S. PALMER*

Executive

Vice-President,

Colorado

Mining

Association

addressing members of the Canadian Prospectors and De¬
velopers Association, Mr. Palmer stresses importance of
increasing the supplies of uranium as a factor in nuclear power

The Guaranteed

policy is of tre¬
mendous importance, for without
a friendly atmosphere in which to
prospect and mine there would

,

development. Decries trend in U. S. to restrict the
Public

Domain

and

to

prohibit its

Praises cooperation of Canadian

Annual Wage Demand

vast

Government with U. S. in

they were the only
position to develop our

common—in that they both owe a

resources

great d e

with

1 to

a

they

—

the

ones

in

mineral

and the

money

experts.

the prospector
and
the
de¬

You

know,

man

away

veloper. Early-

legedly educated

day

everything
about
nothing.
To
summarize, the day of the pros¬
pector, the little fellow in mining

prospec-

tors

were

largely

gold

seekers.

They

sought

expert is either a
from home or an al¬
an

who knows

man

the

circles

was

which

had

than

more

Then

on

stered

our

the

peoples Of the
world

Robert S. Palmer

from

lime immemorial

exchange;
if it

medium of

a

could

give

our

security today

proper

but given a chance.

were

should

as

and

generation
and

Uranium—the Won¬

came

overnight pros¬
pectors and developers were in
the
hills, the bush country, the
forests, the ravines, the deserts,
the faraway places searching for

economy;

served

We

this

and

other

metals.

Who

1930?

year

tor

Territories

Was it not

a

of action lies open to

Plateau that uncovered the

for

on

our

done

It

its

has

and

money

fix

to

system

Congress

coin

of

govern¬

the

fix

right

to

the' value

evidently has the right
salaries

own

recently.

so

us.

You

for

it

has

recall

may

in

the

dry

from

and

the

Big Indian Valley

the

prospec¬

named Gilbert La Bine?

back

press

dis¬

in

it

must

we

Who

desolate

rim of

steep

the Colorado

on

sensa¬

tional

deposit of uranium, known
today as the Mi Vida claim of the
Utex

Exploration Company? None

other than Charles Steen, a brok¬
and

en

who

dejected young prospector

had

the

faith

and

the

cour¬

from

age to face disappointment after
disappointment and yet carry on

£20.67 an ounce to $35.00.
I was
again there when silver was raised

until he made his great discovery.
Who was it who fought

f

in

was

price

from

Washington

of

gold

70.11

cents

when

raised

was

an

the

to

ounce

90.5

for domestic producers.

That was
when certain manufacturers were

telling

us that they just couldn't
get silver from producers for less

than

the

cost

of

production,

so

they wanted the people of the
United States to sell them Treas¬
We

could

•evening to

why

sons

ments

gold
to

we

the

ers

all

go

in

its

here

are

govern¬

out

to

place

place.

proper

to

rea¬

tribute

pay

Prospectors and Develop¬

who

place

entire

our

respective

our

should

back

But

devote

discussion of the

a

have

in

the

through
of but

a

been

given

a

new

having passed
cloudy atmosphere

the

Surely

in

telling

the

the part they played
our

my

section

-*ire

various

from

communities.

the

country

In

there

and

monu¬

by "Cousin

named

Jacks"

Cornwall

French

in establish¬

landmarks

many

ments

of

and

Canadians

Wales

and

who

helped
far-flung territory.

settle that

Modern trends have caused
peo¬
ple to migrate to our cities. Many
overlook the accomplishments of

prospectors.

assign

Some

him

Maybe

to

have

you

i-emarks

the

in

have

tried

heap."

heard

Canada, but

such

have

we

that only great mining
companies
with elaborate staffs were

capable

finding

new

ore

and

reserves

that if you want to invest in the

mining business,
*An
r23rd

address
Annual

).3ctors

and

laoio, Can.,

by

you
Mr.

Convention

should select
Palmer
of

the

at

the

Pros-

Developers Association,
March 9, 1955.




was

To-

discov¬

Vernon Pick,

pros¬

a

million

to

Floyd Odium's
Corporation.
You
and
I

could cite hundreds of similar

amples
—not

in

both

of

successes

velopers

and

in

of

day-to-day

to

the

these

risks

that without them

search

for

romantic
eral

the

in

up

a

new

will

at

ceremony

made

some

of

our

most

for

us

level
can

in

generate

drive

our

rify and

preserve

mineral

a

the

globe.

us

God

That is.

if

fail

we

to

h<^ed the

of

lead

some

bowels

of

mine

the

earth,

described

man

deep

in

the

did

as

the

in

book

the
"Mr.

All

these

I

you,

the

am

things

to

but regardless of

sure,

facts

known

known

are

with

respect

to

the

aovantages of developing our
reserves of these and other
badly
needed

have

metals,

with

still
the

seem

the

us

to

skeptics,

we

regulators, the downright obstruc¬
tionists—some, I fear, in govern¬
ment

and

few

a

in

financial

Today,

New

Vista

if

will, gain a new
vista of the great and glorious in¬
us; we can,

we

dustry which

represent.

we

statesmen

in all countries

are

and

their

upon

the

re¬

Fore-

diplomats

economies

of

new source of power

and energy which comes from the

earth.

ard

Industrial

new

just begun.
of

living

Our high stand¬

in

respective

our

largely from the

comes

abundant

Revolution

of natural

use

the

consider

kind

ceiving lines. True, modern scien¬
improvements have added to

last

two

tific

way

of

the prospector's "know-how"
in
the search for uranium and other

in

as

a

which

luxury,

you

but

which in the

energy

materials.

source

The

geiger
the

are

counter,
the scintillator,
scintillometer, the voltameter

but
in

a

few of the gadgets which

common

use.

airplane and, in
the

Without

certain

instances,

helicopter,

have

been

discoveries may
delayed for years, but

regardless of the advances of
air

attack

hidden
is

the

as

Mother

upon

an

Earth's

the foot soldier

resources,

prospecting

as

in

modern

day

in modern warfare.

Technological research

and

scien¬

tific advancement have aided and
assisted in many ways but without
the

raw

materials

the prospector and
would

amount

to

furnished

by

developer, they
naught.

living

has

in

raised

almost

our

every

particular:
in
food
and
clothing and leisure, as much as

the

transport, in agri¬
in industry. It is the

culture and

type

of

the

each

A

Industrial

than

more

which

energy

First

one

of

doubled
us

farmer, if

any

China, can
family, but a
North

and

keeps
does

them
it

the

the

goes

out

fight,

a

individual

farm

Surely
the

.

.

drive

tion

to

that

say

doubt

can

is

getting
how

in

about

one

tors.
not

hard,

truculent
attitude
the very important fac¬
Don't lose sight of it.
It is
of

bluff,

a

or

bit

a

of

union

propaganda made solely to main¬
solidarity. The union spokes¬

tain

mean

several

standards

to

major assault

a

has

and

they say.
they've been

years

which

economy

fair

word

every

on

American

always

considered

and they will go

proper,

great

the

effort

to

destroy

those

standards.

Briefly,

standards: A
for

get,

should

considerably
who

is

of

one

the

who is working

man

living

a

is

expect,

than

more

not

and

working

a

for

a

living.

pay" is sound? Prepare to forget
it, if the current GAW demand
is

forced

tral

industry.

on

threat

the

of

The

demand

cen¬

is

the individual is entitled to

that
fair

a

day's pay whether he is working

possibly

in

and

more

fed.

He

by his

com¬

mand of energy.
It comes quite

apparent, there¬
fore, why nations are giving more

when

the

the

page

31

this

at

In

Little

have

the

on

years

Steel

Formula,
pensions, or

or

demands

wage

I

uni¬

as

previous

check-off,

issue,

found

were

at

managers

to

be of varying opinion.
Even dur¬
ing the violent years when rec¬
ognition was fought hard and long
by some managers, others did not
see

it

as

there

such

were

bad

a

thing

.

shades

many

.

this

utmost

And

I

and

Today,
looks
*An

March

manager

current

GAW

threat

seriousness,

there

is

information

I

de¬

of
of

on

the

by
the

Mr.

Guaranteed

Society

Management,

11,

1955.

Rising

for

the

New

at

the

Annual

Advance¬

York

City,

with

I

th

true

can

no

untapped,

is

say

source

o

experi
combination o
no

unstudied, no
possibilities unexplored in its

re

search

into unemployment com
pensation, employment stabiliza
tion, and fair adjustment of th

employee's problem.
Yet despite all of

study,
I

despite

and

will be liberal and

replies to the
the

the

the

carefu

fact

logical in thei

union

begin,

I

management

when

do

nego¬

not

expect
to

answers

isfy the union negotiators.
lieve

the

big

a

tha

confident the manufacturer

am

union

strike

crushing
In

be¬

great

a

by

strike—
and

forceful,

automobile

patiently

be

for

mer

and

then

union

Motors

accept

is

industry,

smaller

expected

the

General

been

and

feels that

will

which

a

"victory"

the

panies

wants

—

sat¬

I

action.

everyone

can

wait

ham¬

to

the

Ford,

"pattern"
That

has

way

you

com¬

to

and

established.

the

things have gone
other years, but I do not be¬
safely

forced

on

predict

the

of this year.

If the current
full-pay-without-work demand is
I

expect

the

biggest companies,
determined

very

from

ance

the

smaller

resist¬

ones.

If

the final settlement with the

gest

companies

which

can

by

smaller

big-;
something

is

reasonably be assumed
ones, then you could

look for more or less rapid ex¬
pansion of such a formula, with
regional and local variations here
and

there.

What

all.

ful

in

there

tions
Not

this

be

may
at

know

GAW

ever

person

that

more

ence

no

And

means

is

"pattern"
you

that

this

must

be

there
year
care¬

trying to guess the future;
still

before
address

Conference

Wage

every

the

at

wit

know

individuals

Management has left

.

and

shapes of management policy.

ment

on

is

demand.

specific

to the agricultural college, is

Continued

GAW

his
15

well

muscled

time

it

as

left

because

and

was

fied

then

me, when I report t
industrial managemen

that

takes

GAW

time when

a

management opinion

are

everything
he
from the tractor to the fer¬
tilizer, and from the main high¬
backed

have not known

t

I'v

mailing list contain

those

Believe
you

lieve

to

firs

union

publicly.

and

now

course

I

or

keeps

Opposed

the

the

ally.

in

Management

eat.

uses,

way

not.

or

since

get

big managers^ littl
middle-sized
ones,

names

militant

Do you favor the belief that a
"Fair day's work for a fair
day's

to

my

—

tiations

here

man

with

of

one

our

prepared to get it the hard
way."
are
direct quotes.
This

fo

visiting with man
gossiping about th
a
period, nbw

correspond

as

only question is
it."
Or, "We are

successful

years

and

ones,

the

get

them

quite

tried

talked

3,000

remarks

the

two
I

them

question

no

it;

we

o

dis

can

with

debate the question

if

Those

is

about

determina¬

the

such

for

time

this

for

of

and

GAW

followed

preparations

implicit

lives

been

agers

the

and

.

no one who has

union

to

worker

today

very

calories

I've

will have to fight.

you

anyone

ager.

don't grant the demand with¬

you

har

They are optimistic abou
future, almost any time, i

reaction

the

moment

The

on

tried

face of almost any problem
"Let's work it out" is the natura

Consider for

"Demand"

demander

have

the

or
group using that word is not
saying "We suggest" or "We pro¬
pose." In the case of the GAW it

is truly a

poli

present

awhile.
the

Rising

"Demand."

and

the

i

aim

characteristic

which

who

cover

Guar¬

Wage.

word

practices

managers

quality

is

as

made

are

structure,

underlie

occupational

in¬

on

changes

th
un

be

anteed Annual
Prank

keep

there

barely

America

since

Revolution

afford

can

in

has

can

calm, reasonable, and hope
ful during this period of the unio
build-up.
Management p e o p 1
have, as a matter of fact, a

demand

for

housing, in

others

important

centuries

The

to

in

single

fissionable

of

energy—

he

count

day successful business.

not

termined

e

dustry

man

A

recogni¬
were

assault

considering the

might

the prospectors and the

before

are

which

shrouded

preparing for

horizons

new

business

cies

overtones of

For
A

even

battles

nearly so comp 1 e x
and

men

spheres of influence.

fundamental

and

tion

"There

Atom."

radical

the

ties, and

warning, if it comes, and
hide away in the lower workings

if

in

forbid,

from the face of

not the kind of energy

are

cure

rockets—

our

which,

obliterate

may

foods,

our

diseases, propel

our

less

over

d

cannot

'thir¬

late

the

a

and ships,
planes, pu¬

and

cars

the

the

that

power,

which

of industrial organization in

surge

advanced

electric

our

locomotives

our

perhaps

or

and

well

so

threat

a

of, and cannot live with

take

mankind

as

cost

and

to

mand

an

great

rugs,

men

such

measure,

of living to the highest
history—a metal which

way

we

not

joining the
fascinating,

mining society gatherings, seldom

developers to be found

been

since

revolutionary min¬

era

impact

with

not

relations

ing of all the minerals which have

countries

are

in

the unions.

labor

the most productive, the
beneficial, the greatest bless¬

Yet

ever

rest¬

has

be

most

has

great

the

that leading auto

rumors

compromise "deal" with

a

enormously important problem in

render

cases

industry in labor

turbulent, roughest labor-trouble year
in a long time is
right ahead of us."

seen

history — a mineral
which, if properly apolied, opens

uranium, the

safety

have

all

security of the Free World
might today be placed in jeopardy.
awards

the

and

both

—

and

when

or

willing

are

involved

good

common

prospectors

and women—are

said

many

to

who

sighted

areas.

making are
essential that it might well be

so

in

service

countries

our

The contributions to the welfare

society,

workers,

room

guaranteed annual

Predicts the "most

There

by beautiful pink

do

opposing the demand, and decries

mahogany desks

on

a

on

assault

been

mining

ex¬

prospectors and de¬
isolated and some¬

times desolate

of

back

some

surrounded

romantic stories of the past

but current reports of

to

Heard them in
Denver, even at
mining parleys, namely: that the
prospector is through — his place
had been taken over
by others.
You may have heard it asserted

of

$9

Atlas

are

"scrap

not

It

men

story

death

pector who later sold his property

which

of
our
accomplishments, we should
not overlook the past.
Names of
places given by the early pros¬
pectors are constant reminders of
ing

ery?

sun,

few years ago.

and

famous, fabulous

now

for

silver for bargain prices.

ury

water, rattlers
who
worked

itself,
his
way
through the forsaken
lands
of
towering buttes, treacherous rock
and deeply cut canyons to make
his

government

ing their feet

real

has

they be behind worn-out

tables in

storms,

poison

officials

Geologists,

determined

most

producers will make

provin¬

local

whether

our

Northwest

in

studies,

Dominion,

by

engineers,

can

geological

helpful.

the

was

thereof.

and

served

area

ment,

cial
most

covered the spectacular deposit of
uranium at Bear Lake way up in

recognition for gold by our
governments, for no other course

proper

Under

conducted

the

Wonder Metal

der Metal. Almost

bol-

from

over.

The

one

occasion

received

describing the demand for

the

as

relations battles, says the central thread of the demand is that
the individual should be entitled to a fair
day's pay, whether
he works or not. Points out
management is almost unanimous

The assistance prospectors have

women

precious metal

Mr. Rising, in
wage

activities in regions
eventually be highly

may

Manager, Automotive Parts Manufacturers Ass'n

preserve

and

areas

which

equipped

were

Domain, to

By FRANK RISING*
General

productive.

only reputable mining companies
for

trend

the

prospectors'

more

Toronto, the mining capital of
Canada, and Denver, the mining
-capital of the States, have much in

The

prohibit access
prospector.
Legislation is
pending in the Congress of the
United
States which, if enacted
into law, would
greatly cripple

raw materials and finished products, and calls
understanding, aiding and assisting the mining
industry and all those engaged in its worthwhile pursuits.
in

I

use

to

development of

for

I

the

mines.

new

of the Public

of the

use

in

United States is to restrict the

the prospector.

to

access

few

Thursday, March 24, 195

.

Policy

Government

probably be little prospecting and
In

..

is

even

some

time

to

pass

preliminary negotia¬

begin.
only GM and Ford, but 55

Continued

on

page

56

yolume 181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1371)

New Issue

~

$50,715,000

State of New York
2%, dna,%2V2
\% Housing Bonds

2lA%,

4%,

To be dated April 1, 1955; to mature as shown below. Principal and semi-annual interest

Coupon Eonds in denomination of $1,000, exchangeable for Bonds registered
$5,000, $10,000 and $50,000. Registered Bonds

Interest Exempt
In

our

may

as to

be exchanged for

(April 1 and October 1) payable in New York Cityw

principal and interest in denominations of $1,000,

coupon

Bonds at the

of the holder.

expense

from Federal and New York State Income Taxes under Existing Statutes and Decisions

opinion, these Bonds meet the requirements

Legal Investments for Savings Banks and Trust
Savings Banks in Massachusetts and Connecticut

as

Funds in New York and certain other States and for
These Bonds

are acceptable to the State of New York as security for State deposits, to the
Superintendent of Insurance to secure policyholders and to the Superintendent
of Banks in trust for Banks and Trust Companies,

In the

opinion of the Attorney General of the State of New York, these Bonds will constitute valid and binding general obligations of the
York, and the full faith and credit of the State will be pledged for the payment of the principal of and interest

State of New

on

the Bonds.

~

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICES
Due
The State
or on

reserves

any

the

$1,035,000 each April 1, 1957-2005, inclusive
privilege of redeeming, at

of the Bonds of

on

April 1, 1995,
or

all

Yields

Yields
Due

Yield

Coupons

value and accrued interest,

single maturity beginning in the inverse order of their maturity.

a

Prices to
Due

par

interest payment date thereafter, all of the Bonds maturing 1996-2005,

Coupons

or

Price

Due

-

Coupons

or

Price

1.70%

1977

21/4%

2.10%

1.75

1978-79

2V4

2.15

4

1.80

1980-81

2 y4

2.20

4

1.85

1982-84

1970

4

1.90

1971

4

1.05%

1966

4%

1.20

1967

4

1968
1969

1957

4%

1958

4

1959

4

1.30

1.35

1961

4

1962

4

1.50

1963

4

1.55

1964

4

1.60

1974

4

1.65

1975-76

2

21/4

1988-89

2V^

2.35

1990-92

2l/2.

2.40

1993-95

21/2

2.45

100 (price)

4

1965

100 (price)
2.30

2.20

1.40

21/4

1985-87

4

1960

1996-98

21/2

100 (price)

2.00

1972

4

2.10

1973

4

2.15

(Accrued interest to be added)

$7,245,000 \% Bonds due 1999-2005

The above Bonds

are

offered, subject to prior sale before

and if issued and received

by

us

or

after

are

i

not being

appearance

reoffered.

of this advertisement, for delivery when, as

and subject to the approval of legality by the Attorney General of the State of New York.

Interim Certificates will be issued

The National City

Bankers Trust Company

First National Bank

Bank of New York

pending the delivery of definitive Bonds.

Incorporated

Halsey, Stuart & Co. Inc.

Smith, Barney & Co.:

The First Boston Corporation

Ripley & Co.

Incorporated

Lehman Brothers

J. P. Morgan & Co.

New York

Harriman

yL

Phelps, Fenn & Co.

(

Lazard Freres & Co.

Glore, Forgan & Co.

Merrill Lynch, Pierce, Fenner & Beane

Union Securities Corporation

Goldman, Sachs & Co.

The First National Bank of Portland

Continental Illinois National Bank and Trust Company of Chicago

Eastman, Dillon & Co.

Oregon

Paine, Webber, Jackson & Curtis

of St. Louis

Ira Haupt & Co.

Dominick & Dominick

Hayden, Stone & Co.

Alex. Brown & Sons

Wm. E. Pollock & Co., Inc.

Robert Winthrop & Co.

Aubrey G. Lanston & Co.
Incorporated

Incorporated

Eldredge & Co.

Dick & Merle-Smith

National State Bank

of Georgia

Branch Banking & Trust

Co.

J. C. Bradford & Co.

Tucker, Anthony & Co.

Andrews & Wells, Inc.




King, Quirk & Co.

Mackey, Dunn & Co.
Incorporated

Vewburger, Loeb & Co.

Clark, Dodge & Co.

Stroud & Company
Incorporated

Bramhall, Falion & Co., Inc.

Baker, Weeks & Co

Incorporated

E. F. Hutton & Company
March 23, 1955.

Dean Witter & Co.

Newark, N. J.

Incorporated

Trust Company

Coffin & Burr
Incorporated

Laidlaw & Co.

Hirsch & Co.

F. S. Smithers & Co.

Shearson, Hammill & Co.

Roosevelt & Cross

Braun,Incorporated & Co.
Bosworth

The Boatmen's National Bank

Bacon, Stevenson & Co.

American Securities Corporation

Lee Higginson Corporation

Wood, Struthers & Co.

•

Byrne and Phelps
Incorporated

Rand & Co.

City National Bank & Trust Co.
City,
Kansas

Mo.

Shelby Cullom Davis & Co.

Tripp & Co., Inc.

Tilney and Company

7

8

(1372)

The Commercial and Financial Chronicle

Armco

Steel

Corporation—Annual

Steel Cor¬

report—Armco

NSTA

poration, Middletown, Ohio.

Dealer-Broker Investment

Bath

Works—Bulletin—Cohu

Iron

York

5, N.

Service

Recommendations & Literature
It

understood

is

that

mentioned will he

firms

the

send interested parties

to

Y.

Co.

&

Also available is

of

Appointments

Co., 1 Wall Street, New
memorandum

a

Public

on

Carolina.

North

Bonanza

Oil & Mine—Report—L. D.
Broadway, New York 4, N. Y.

52

Thursday, March 24, 1955

...

Friedman

&

Co.,

Inc.,

Bridgeport Brass Company—Annual Report—Bridgeport Brass

pleased

Company, Bridgeport, Conn.

the following literature:

Bullard
Air

Company — Report — Thomson & McKinnon, 11 Wall
Street, New York 5, N. Y.

Conditioning

—

Pointers''—Francis
York 5,
low

at

dend

N. Y.

Analysis
I.

In the

du

in

Pont

&

issue

same

issue

current

Co.,
are

1

a

Wall

of

''Market

Street,

New

list of stocks selling

price-to-earnings ratios and those with small divi¬
in

payouts

analysis

of

of

terms

Allis-Chalmers

list of stocks

earnings.

Also

Manufacturing

available

is

a

and

Company

a

with favorable technical patterns.

Canadian Commercial

velopment Division

Bank

of

Commerce, 25 King

Street, West, Torrjto, Orrt., Canada.

Cavendish

and economic

Monthly review of business

trends—Ross, Knovvles & Co., Ltd., 25 Adelaide

Street, West, Toronto, Ont., Canada.

Toronto Stock

on

on

Exchange—The Toronto Stock

Favorite

Fifty—Analysis by dollar value of listed stocks most
popular with professional management — Vickers Brothers,
52 Wall Street, New York
5, N. Y.

New York

Investment

Bulletin

—

Vilas

&

Hickey, 49 Wall Street,

5, N. Y.

Opportunities

rities Co.,

in

Japan—Circular—Yamaichi

Sec-

Ltd., Ill Broadway, New York 7, N. Y.

Largest Banks in

the

U.

S.

as

of

Dec.

31,

1954—Folder—

Republic National Bank of Dallas, Public Relations Depart¬
ment, Republic National Bank Bldg., Dallas 1, Texas.
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
stocki
used in the National Quotation Bureau

yield

and market performance over
National
Quotation Bureau, Inc., 46

Averages, both as to
13-year period —
Front Street, New

a

York 4, N. Y.

counter market

containing charts on 338 industrial stocks, 77
utilities, 45 banks, 44 insurance companies, two years of
weekly prices, annual ranges from 1949, earnings, dividends,

capitalizations, capsule description of each company's busi¬
and

16-year chart of over-the-counter industrial

First

Publishing

Co.,

14-F

Elm

Street,

Outlook—Monthly oil and
year—John S. Herold, Inc.. 250 Park
New York.

James

—

on

Rare

Earth Mining

Morristown, N. J.
gas

service—$35

Securities

Corporation, 100 Broadway, New York

Co.—Bulletin—Laird,

Incorprated—Study—Bertrand
42nd Street, New York 17, N. Y.

East

Match

Industry—Analysis with particular

tional

Salt,

&

tional

Bissell

&

Meeds,

tion, Inc.

W.

Hall

&

Co.,

memorandum

Co.,

&

Hoist

Brothers, Inc.—Memorandum—Shearson, Hammill &
Co., 14 Wall Street, New York 5, N. Y. Also available are
memoranda on Hertz Corp., Illinois Central Railroad
Co.,
U. S. Pipe & Foundry Co. and Wilson & Co.
Sweet

Grass

Oils

Limited—Analysis—Canadian Corpo¬
Service, 44-50 Pearl Street, Toronto 1,
Ont., Canada—$1 per copy. Also available is an analysis
of Dyno Mines Limited, $1
per copy.
Information

Higgins Inc.—Memorandum—Kneeland & Co., Board of Trade

Building, Chicago 4, 111.
Hodgson

Houses, Inc.—Analysis—Vincent M.
Road, Winchester, Mass.

Cantella

&

Co.,

53 Swan

Lion

Leslie

Salt, and

reference

to

Pennsylvania Salt—Harris, Up¬

New York.

What Atomic Energy Is and How
It Is Applied—4-color sheet
with listing of 100 atomic

1033

D. C.

stocks—Atomic Development Se¬
Thirtieth Street, N. W.,

Washington

*

*

7,

Airlines, Inc.—Memorandum—Emanuel, Deetjen &
Co., 120 Broadway. New York 5, N. Y.
Machine
&

York.

Mr.

San

by the elevation of Mr. Elder.

Nadler Hints at More
Drastic Credit Curbs
N. Y. University Professor and
consulting economist of Hanover
Bank

credit

says

include

a

measures

39

Lime

South La Salle

card memorandum

or

a

margin

higher discount

Continued

building,

o v e

&

Metals

Inc.—Annual

Inc., 75

Federal

New York

consumer credit

&

135

The

Nikko

in

current




said

Such

Northern

States
Power

Packard-Bell

Power

Company—Annual

&

Co.,

210

report

a

Co.,

120

is

bank

central

far

&

Continued

Incorpo¬

cline

so

in

71

DEPENDABLE MARKETS

a

check any

infla¬

it may harm
cause a

business

in

the entire

general de¬

activity

accom¬

panied by considerable unemploy¬
ment. To avoid the
serve

page

that

if it wishes to

can,

danger, however, is that

doing

are

on

Credit

hy The Han¬

question

no

enough,

economy and

Ready Made Buildings Inc.—Analysis—Aetna Seecurities Cor¬
poration, 111 Broadway, New York 6, N. Y.

of

"Role

on

tionary pressure," Dr. Nadler said.
"The

$

Corp.—Report—A. J. Grayson, 92 Liberty Street, New

Williams, Inc.—Analysis—May & Gannon,
rated, 161 Devonshire Street, Boston 10, Mass.

a

Bank.

"There

go

&

or

ligations for cash, Dr. Nadler said

Control," published

|

Products

require-

fering of long-term Treasury ob¬

in

Inc.—Memorandum—Walston
Broadway, New York 5, N. Y.

Ramie

g i n

in¬

m a r-

higher rediscount rate and the of¬

Street, Los Angeles 14, Calif.

Pa.

Nadler

1-

o

by

ments

1-chome,

Pennsylvania Turnpike—Report to bondholders
regarding Com¬
monwealth of Pennsylvania,
Pennsylvania Turnpike Com¬
mission—Drexel & Co., 1500 Walnut
Street, Philadelphia 1,
Purolator

market

open

South

report—Northern

Hull

more

a

lowed

Company, Minneapolis 2, Minn.

Company—Bulletin—Holton,

West Seventh

meas¬

might in¬

policy f

Marcus

Co., Ltd., 6,
Kabuto-cho, Nihonbashi, Chuo-ku, Tokyo, Japan.

is¬

aggressive

"Weekly Stock

Securities

in

Mar. 23.

sued

creased

issue of

o

published

statement

Street, Chicago 3, 111.

—

t

Hanover

Bank,
a

ures

Co.,

Nad¬

economist

The

State Power Authority & New York State
Thruway

Nuveen

the

ler, consulting

Company—Report—Dayton Haigney & Co.,
Street, Boston 10, Mass.

Bonds—Bulletin—John

in

and

equity market may well bring on
more
drastic credit controls, Dr.

Higgins Incorporated.

Nippon Express—Analysis

Scott

report—American

Metals, Inc., Woolworth Building, New York 7,

rate.

r-optimism

clude
New England Lime

either

requirements

Company—Analysis—Leason & Co., Inc.,
Street, Chicago 3, 111. Also available is a
on

open

market policy along with
increased

may

aggressive

more

D Uranium Mining Co.—Report—James M. Toolan &
Co., 67 Wall Street, New York 5, N. Y.
England

an¬

Council to fill the vacancy created

Arkansas.

New

Bunn

appointment of Wal¬

Gorey, Walter C. Gorey Co.,
Francisco, Calif., to Executive

Marcus

York 6, N. Y.

•

American

Machine

to

Simultaneously,

over

Industry in Japan—Analysis in "Monthly Stock
Digest"
Securities Co., Ltd., 1-1
chome, Nihonbashi-Tori,
Chuo-ku, Tokyo, Japan and 61 Broadway, New York 6,

—Nomura

American

Elder, Straus,
McDowell,
Detroit,
the unexpired term of

Company—Annual report—Public Relations Depart¬
ment, Lion Oil Company, 811 Lion Oil Building, El Dorado,

Interna¬

Steel

Co.,

appoint¬

J.

Oil

Bulletin"

Co., 14 Wall Street, New York 5, N. Y.

curities

the

announces

George

Co.

American Oil Company of
Texas—Analysis—Sanders
Newsom, 1309 Main Street, Dallas 2, Texas.

ration

Associa¬

ter C.

General

Great

Na¬

Traders

Also avail¬

Food Machinery & Chemical Corp.—Memorandum—J. A.
& Co., 301 South Kingsley

&

President,

&

nounced the

Shepard Niles Crane

on

of

Mich.,

41

—

a

Bunn,

Security

Blosser

Match Co.
Annual Report — Secretary, Diamond
Company, 122 East 42nd Street, New York 17, N. Y.

able is

W.

Treasurer of N.S.T.A.

Daystrom,

per

Avenue, New York 17,

C. Gorey

Walter

George J. Elder

Corpo¬

Broadway, New York 5, N. Y.

States

New

Information

ment

Revenue

Raw Sugar Prices—Comparative chart—Lamborn &
Company;
Inc., 99 Wall Street, New York 5, N. Y.

ham

—

5, N. Y.

La Salle

Petroleum

Salt

Boston

aver¬

age—yearly subscription (six up-dated bi-monthly editions),
$45.00; single edition (March-April) $8.75—Over-the-Coun¬

i

Corp.

Lucky

Over-the-Counter Stock Charts—Graphic manual of over-the-

ter

Mines

Gimbel
Bonds

Investing in the Electronic Age—brochure—Harris, Upham &
Co., 14 Wall Street, New York 5, N. Y.

ness,

Sinclair

Hogle
Drive, Los Angeles 5, Calif.

Exchange, Bay Street, Toronto, Ont., Canada.

100

Uranium

13, Calif.

Review—Monthly bulleting giving trading dated

issues listed

Income

on

East Tennessee Natural Gas Co.—Memorandum—Fewel &
453 South Spring
Street, Los Angeles

f, N. Y.

i

data

Chicago, Rock Island and Pacific Railroad Company—Circular

Street, New York

Canadian

are

John

Diamond

Canadian Letter—Fortnightly review of the Canadian Securi¬
ties Market—Newling & Co., 21 West 44th

bulletin

ration.

120
—

same

Anthony Securities Corp., 37 Wall Street, New York 5, N. Y.

Christiana

treal, Que., Canada (64 Wall Street, New York City).
Investment Bulletin

In the

Oil, Ekco Products.

—The

Canadian Economy—Monthly report—Bank of Montreal, Mon¬

Canadian

Watch—Data—Bruns, Nordeman & Co., 52 Wall Street,

New York 5, N. Y.

Also available is information

Letter—Monthly booklet—Business De¬
Canadian

Bulova

latter, the Re¬

authorities and the Treasury

moving

slowly

and

at

times

imperceptibly."

Bonanza Oil & Mine
Producing Quicksilver Mine

Trading Markets Maintained

Report

on

request

L.D. FRIEDMAN & CO. Inc.

DEMPSEY-TEGELER & CO.

52 Broadway,

New York City 4, N. Y.

Telephone DIgby 4-0860

Number 5414

181

Volume

..

.

(1373)

Chronicle

The Commercial and Financial

adjoining Gull Lake. Crane
Lake looks very attractive too,
at
the
and Gridoil has 28,000 acres there,
easily calculate current income of possibly 700 billion cubic feet.
The company appears to be
per diem. Canadian Prospect also The nice thing about this is that quite fortunate—it hit eight wells
has 25 more likely well-sites on this producing property is within in a row at North Gull Lake ungood quality (38 de- for these shares if sold today. Caand sells for $2.83 nadian Export has 26 successful
well head—so
you
can gas wells, and proven gas reserves

Thq

Provincial Oil
Enterprise
is

Economist

years

ward

rank

to

most

the

as

its acreage, with which it will no 20 mile? of the first leg of the
doubt proceed in due course. This proposed Trans-Canada Pipe Line.
area is especially economic, since Canadian Export is one of three
wells are only about 8 miles from companies with a contract to demil- Interprovincial Pipe Line.
liver to Trans-Canada (when and

valuable Ca-

min-

nadian

and proven reserves above 3

lion barrels.
Production, principally in the Virden field, is expanding and considerable expan-

at

gravity)

Canadian Pipelines had an interest in 72 producing wells and five
gas wells in Alberta, Manitoba,
oil has marched for- British Columbia and Missouri
aggressive

taking

steps toward becoming self sufficient- in oil.
While in the past
seven

oil is

gree

By IRA U. COBLEIQH

Canada

der a drilling agreement with
Anglo American Exploration Ltd.,
under which Anglo gets 20% after
costs, and Gridoil the rest.

Altogether, Gridoil now has
if)- Although this pipeline proj- 1,700 barrels a day of its own
ect was slowed down a bit this production. More wells and a sePast week, when it does come, ries of farmouts suggest a steady
10 times that rate Canadian Export is in a highly expansion.

Valley, North Alberta,
there are two producers restricted
to 81 barrels a day (apiece) which
in

Big

sion of future revenue is sug- could flow at
gested by the large royalty inter- from rich D2 zone about 5,200 feet strategic position to benefit.
gold, and far ests delineated above (over 3,300 down.
If you properly value freehold
a h e ad
of points as of last September
and
It wouid fce quite reasonable to leases, royalty spread, actual and

eral

product—
nosing
out

ore' asbestos
ore,
asoesios
or

in

From

um

reserves

were

and drilling

ada

out'East

fififi

Share's

4 913 389

barrels

of

abcmt* 3

bil-

above 1,000 bbls. per day
by the end of this year. But pro-

etnPt

tially

rommon

if

Another

<fil onn

shares'are
™

but

this enterprise.
There's the

field

Alida

in

Sas

ineres the Alicia lieid in bas-

Ro

katchewan» where Imperial Oil
and Socony Vacuum have brought
in some excellent wells. Canadian
Prospect has a free overriding
'2%% r0yalty 0n 230'000 acres

note

listed

.vl SS
°
f
" *££ KM? iS

interesting

test Canada

is
or

«1

ai

onmmnn

Zntl

reserves,

proven

maturity

fnr earh

1 $nrieed

Can-

West

and

has located

now

lion

mil-

70

intn

rPHPmnHnn

unit

$1,000

until

exchangeable,

i^t^ve ex^loraTion
firstlbi AJberta and ll/j ?«

barrels

fanning

when

around

each

conversion

'netrole-

total

lion

mea-

a

1 94 6

Cobleigh

5V2%

$750,000

notes of Canadian

start in

ger

Exploration

r

«
b

entry

Oil orosDects

is

one

not without prospects.

*:f

.

^

o

a*

n

Ca-

974 000

in?

111/

r>n

rathiL rhoirp81and

aggressive and successful drill¬

ing program, and strong sponsorua
*1
a
•
T
k

T

CP

l^SS

i

...

.

^

.
.
extend

'

your

Canadian

Here's what

the counter around 9.
lion

a

year

of

ment

Canada

is

toward

its

supplies

is going into developproduction
Thus

new

almost

now

theoretical

half
goal

way
—

it

of oil

pipelines to refineries with
capacity of 630,000
barrels a day.
Oil is very big in
Canada and getting bigger every
present

still

on

acreage

it in

a

be

broad

fine

a

royalty call.

panoramic

swath

of

Canadian

prairie

is

225 corporations

Let's

start

with

basic

British

in

areas.

the

interest in

18%%

(mostly freehold), some of

quite promising

an

2,486,000 acres

Columbia.

Finally, Canadian Prospect owns
ele-

26%

has

year,

Prospect also has

(525,000

shares)

in

a

a

call

and

an

entry

Grea^Plains,

Calgary

&SEdmon-

Security Freehold. To
g0 for 0n you must first secure
likely land. These enterprises have

taking place.

been operating on that principle
and it is quite conceivable that

For instance, in the Fosterton

pro-

ton,

and

ment, production. In the Rosalea gressive company, Canadian Ex- Field where
Socony Vacuum, someone among these might hit
Field, company now has ten pro- port Gas Ltd. It paid 60c a share Woodley and Southern Production the capital gains jackpot. But it's
ducing wells delivering probably for this stock and could presum- have been so successful recently, all speculation — speculation in
around 70 barrels daily apiece, ably get many times that figure Gridoil has 11,200 freehold acres provincial oil.

out

accent

production.
With

over

This announcement is neither

and

ries,

up

it

into the Northwest
would be silly to

offer to sell,

an

The

looking for oil all over the prai¬

Territories,

They're

just three.

nor a

solicitation of

an

offer to buy, any of this Slock.

offering is made only by the Prospectus.

NEW ISSUE

,try to cover the field in so short
an
article.
So today we'll talk
about

464,325 Shares

essen¬

"land
play"
companies,
something
like early-stage Ca¬
nadian counterparts of such storied
tially

■

NATIONAL GYPSUM COMPANY

equities as Louisiana
Exploration, or Texas
Land Trust.
Now, mind

American

,

and

-Land

Pacific

COMMON STOCK

there's not the slightest rep¬
resentation, or even an inference
that any of these three might be¬
come a market sensation—all we

you,

($1 Par Value)

Rights, evidenced by Subscription Warrants, to

that they possess some
production, a spread of mineral

share for each six shares held, have

'is

say

of record at the close of business

•

rights and royalty interests
-sprawling over thousands of
square miles
of land, including
certain areas where highly suc¬

Standard Time,

on

subscribe for these Shares at the rate of one
of its Common Stock

been issued by the Company to holders

on

March 21, 1955; which rights expire at 3:30

April 4, 1955,

as more

P.M., Eastern

fully set forth in the Prospectus.

-

first

The

t

WARRANT HOLDERS

SUBSCRIPTION PRICE TO

occurred.
we'll talk
about is Canadian Pipelines & Pe¬
troleums Ltd., an Alberta com¬
has

drilling

cessful

company

$40 PER SHARE

which has done a whale of
job in merging into itself a use¬

pany
a

The several Underwriters named in the Prospectus,

smaller companies
by exchange of stock. For exam¬
ple, Canadian Pipelines acquired,
in late 1953, Model Oils Limited
for 500,000 shares of its own stock
(one share of Pipe for two Model);

ful
"

-

of

group

then in February,

added:

shares

including those named below, may offer

of Common Stock acquired by them pursuant to

the exercise of

the Underwriting Agreement or through
the subscription price set forth
offering price on the New York Stock

Subscription Warrants at prices not less than

above and not above

a

price equal to the current

Exchange, plus

an

amount

equal to stock excfuinge commissions.

1954, four more

companies

'

were

Mitmor

Copies of the Prospectus

430,292
shares, Cal-Williston Petroleums
Ltd. for
125,000 shares, Alberta
Oil

•

Gas

and

Ltd.

for

Syndicate

Royalties

the

be obtained from any of the several Underwriters, including

dealers in securities and in which the

for 57,395
Oils Ltd.

shares, and Trans-Canada

In April, 1954,
the assets of Red Deer Mineral
Holdings Ltd. were acquired for

may

undersigned, only in States in which such Underwriters are qualified to act as

Prospectus

may

.

„

legally be distributed.

BLYTH& CO., INC.

W. E. HUTTON & CO.

for 35,000 shares.

:

THE FIRST BOSTON CORPORATION

GLORE, FORGAN & CO.

GOLDMAN, SACHS & CO.

562,786 shares.
Recently, Canadian Pipe has ac¬
quired working control of Farmers
Mutual Petroleum, Ltd., Re-

•

-

gina

Royalties, and Midwest
covering 860,000 free-

Royalties,
hold

-

acres

chewan,

in

Southeast

embracing

strategic

control,
proven

.

ing

.

•

13 oil fields.

wildcat

acreage,

and

building up royalty revenues.
As

a

result,

as

of Sept. 15, 1954,




KIDDER, PEABODY & CO.

HEMPHILL, NOYES &CO.

INCORPORATED

LAZARD FRERES & CO.

LEHMAN BROTHERS

UNION SECURITIES CORPORATION

overall plan of acreage
drilling offsets opposite

production locations, farm^

out

HARRIMAN RIPLEY & CO.

MERRILL LYNCH, PIERCE, FENNER & BEANE

Saskat¬

Altogether these property acquisitions and mergers are part of a

•

re-

crude

ticket on a swath of land where,
as it happens, some of the most
active drilling in Canada is now

on

the

day—but

call

to

about 47% of its oil

now

needs, delivering a good portion
through a network of 4,200 miles
total

appears

ipasp

good results by its neighbors,

chewan and Manitoba. The advan- play" with considerable merit,
tage of a freehold lease is that You may want to look further
y°U P/y jV y<7 W*
^

Kaskatrhe-

in

arrps

^

nf

on Amer...Up.p

Our third Canadian entry today ship by Anglo American (which
is Gridoil Freehold Leases Ltd., just completed a $10% million fiwhich holds a freehold lease on a nancing program) Gridoil must be
total of 522,000 acres in Saskat- classed as an interesting "land

'X ~ov£ SttSS

into

♦

♦

area,
an

Fvphancm

nrpt;pntiv

ofiblirlv

shares

800 000

1 s

r*v

cy

U.

°^"st

•

Ltd., you may arrive here at an
Pipelines were
appraisal of Canadian Prospect
is still a re¬ privately placed. This issue pos- duction is not everything.
still a rpThere shares quite above present market
o t e
target, sessed
an
amazingly
attractive are other interesting points about quotations.
A speculation, sure,
sufficien-

Anglo American

" pref,ct,have production Prospect increasingof production Export Gas held The stock is listed
that Canadian substan- potential Canadian plus the
could

acres)
dties;.

October

Last

uranium,

self

Ira

Xon?60
± /o un iou

9

WHITE, WELD & CO.

JOHNSON, LANE, SPACE AND CO., INC.
March 22,1955

10

The Commercial and Financial Chronicle

(1374)

trends

diverted

mid-year, Mr. Broderick pictures the outlook for F^ll,

key industries.

Sees

likelihood, however, that consumption

a

will continue to improve.

Points out

business

activity,

t0! theJflrst

mr"r

„L^f,n

there; is a good chance

sumi,

months that the F.R.B. index of industrial

was

occasioned

In

by

production

shghtly

decline
in

may

after midyear

It is consumpt on
or final sales, however
which ultimately contiol pr
most accurate y reflect the health
,

sizable

a

re¬

,

duction in the

r

t'on

(he

i

-

will

s

a a

e

ease

in

st

mer

buying.

n

in

continue

1955,

con¬

pace

A continued

rise

per-

With

regard

SLiciption and
a gradual shift

requisite for

industry
a policy

Charles T.

Broderick

inventory

^cumulation to

t

on

of accumula-

one

will

give further momentum
to business activity between now
aid midyear.
outlook

for

Fall,

1955, i.e.

1'3 last six months of the calendar
j

is somewhat beclouded by
possibility of strikes in key

ar,

industries

steel.
to

such

Even

if

eventuate,

d.istry

will

and

autos

as

such log jams fail
the automotive in-

almost

certainly

iction

scheduled

rate

ding.

Since
in

gc.ared

steel

part

this

for

is

output

to

automotive

manufacturing, the possibility of

a

mild decline in the steel operating

rate
aijo

in the last half of

be

taken

likewise
now

Vxiich

into

building

that

homes

cannot

throughout the

1955

must

account.

conceivable

be

at

is

It

are

we

rate

a

sustained

year.

cf

an

address

by

Mr.

have

been

ment.

Qut

R

(

reach

B

o£

(now armmd
jn

way

Mndex

un¬

America, Chicago, in., March 16, 1955.

lifetime

of

By

of

way

of full employ-

years

Therefore,

even

decline

to

that

as

if the

of

the

forecasts

clysm for

business

a

m5This

particular

any

year

in

very

d^ble ^

size

more

wjthin

th

than

of

it

used

the

to

be:

first, because

general acceptance of tax

reduction

as

first

our

impending
depressions;
second, because of the magnitude
and rigidity of Federal expenditures,
especially
for
defense;
third, because of our gerater imfluctuations

in

corpo-

rate
capital
expenditures;
and
fourth, because of the cushions

demand.

consumer

conceded, at the
as

of

and

so

ization

ever

It

is

time, that
remain as sus-

to occasional in-

Association

be written

Announces Appointors
TORONTO, Ont., Canada

J. H.

Crang & Co., 40 Adelaide Street,
West, members of the Toronto
Stock Exchange and other leading
Canadian Exchanges, announce
that Robert K. McConnell has
been appointed partner in charge
the bond department, Arthur
H. Ackerman, Sales Manager, and
Robert J. Trow, Trader,

Dealers'

of

(Special to The Financial Chronicle)

has

Arthur

become

M

connected

Krensky

&

Inc

Co

141 West Jackson Boulevaid, members of the New York and Midwest Stock Exchanges.
was

previously

Mr. Stan¬

with

Irving

Hanson

played

the

the

de¬

nual

in

economic

velopment
our

In

of

years,

in-

bold

some

32

Mass.

—

of

and

Of vital interest to
the important
part of Canada's history is still in
the future—your future and mine.
is

the

fact

pinnnim*

Inof

rnrnnration
,

an

offer

to

be construed

to

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

an

few

a

.

today,

for witnsome of

least

at

years

will be carrying the responsi¬
of

firms

your

well

as

important part in

an

body—The

governing
of

Most

iecti'iiiug

attending

men

will,

fully

so

cue

oc¬

uujxneoS

individual

to

that

will not
into the
Association, and I

our

certain that

they

some

of my

miliar with the details of

con¬

older

$10,000,000

tell of

General Shoe

if

some

at

if

answer

can

we

member

couple of

a

What has the IDAC

—

done for me—either

Due March 1, 1980

as a

corporate

employee
of a
member house—and are we plan¬
or

an

ning for the future?
The origin of our

100%

be

can

the date of

important

our more

to the present.
And in tracing our history, let's

see

to

to

early history and trace our

our

questions

Plus accrued interest

of

asked

were

progress up

Twenty-five Year 3.30% Debentures

Price

they

accomplishments, and there have
been many—so witn your indul¬
gence, we will take a quick look

Corporation

Dated March 1, 1955

ori¬

our

difficulty

.1

our

infancy. Some of the
members might even have

gin and

delivery

in

traced

of

Toronto

into

to

when

1914,

the

Association
action taken

an

bond

dealers

themselves

formed

Association

an

in which the

may

he obtained from the undersigned only in those States

undersigned

may

under

the

Smith, Barney & Co.

The First Boston

ship,

and

know

c

as




'

of

Trade,

ers' Association

their

Kidder, Peabody & Co.
•

because

for
an

member¬

association

the Canadian Bond Deal¬

formation

was

in process of

with objects

own,

that

"this

similar to
association

be dissolved and assets be divided
pro

March 22, 1955

applications

many

Equitable Securities Corporation

Corporation

Board

City, and set up their own
constitution and by-laws.
In February 1916, the minutes
of this group indicated that be¬
cause
of increasing numbers and

legally offer these securities in compliance

Blyth & Co., Inc.

the

of that

with the securities laivs of the respective States.

...

of

rata among members in good

standing of the section."

a

address

association

had

Quebec, 17 in

still

of

have
of

and
can¬

existence

members

our

known

the

few—in

in

others,

will

heard

or

Let's

of

name

Montreal

C. Meredith;,
Company; Quebec
Company; National Bond

W. G. Brown &
Bond

Company;

N.

B.

Stark

&

Com¬

pany; the only members in Que¬
bec City was the
Municipal De¬

benture

Corporation

and

—

in

Ontario—MacNeill and Young; H.
O'Hara

and

Company; Brent
Company; A. H. Mar¬
Company. Older members

Noxon

&

tens &

will recall these and other

which have passed into
Past

and

Some

Present

of

names

history.

Problems

the

problems com¬
manding the attention at our first

by

Mr, -Young

members

of

the

sociation

of

Canada, March

Investment

to
Dealers'

1,

on

the part of various committees to¬

day.
The business handled
the first meeting included:

by

(1) Proposed
amend

1955.

the

legislation to
Municipal Act.

the

(2) Drafting a form for record¬
ing municipal statistics.
(3)
tee

Appointment of

to

standardize

commit¬

a

valuation

of

bonds.
At

the

time

of

June, I received
of

Past

our

said

in

it

of

is

"I

election in

letter from
find

31

that

often think

my

a

Presidents

part:

realize
tenure

—

hard

it

since

years

office,

of the

one

which

but I

battles

to
my

still
had

we

with governments

(Dominion and
Ontario) regarding taxes in those
early years—and the plotting I
did

with E. G.

Mr. R. O.

Long's assistance."
Daly, Q. C., Mr. Long's

partner is

our

sel

Association's Coun¬

now.

Well,

we

still have battles with

Governments—only
11

to watch

two

of

to

win,

when

as

now

Mitchell's

fight

have

did

we

day—we
sometimes

and

one

succeeded

we

we

compared with the

as

Mr.

continue

ago

year

in

having

transfer taxes removed complete¬

ly at the Federal level and par¬
tially in Ontario.
We are and
will

continue

to

press

case

our

against this and other unfair and

discriminatory levies against
members

where

arise,

success

ever

although

when

several

there

they
are

our
may

times

only after
patience
and

comes

of

years

persistence.
By

1919,

we

had

72

members

and in June of that
year,

*An

the

are

many

we

By-laws

Copies of the Prospectus

10

some

temporaries would not be too fa¬

NEW ISSUE

was

re¬

have had time to inquire

am

and

as

Investment

younger

have been

history of

meeting

meeting still require alertness

the

111

an¬

$50.

was

founding

firms,

our

Dealers' Association of Canada.

I presume,

or as

you

remarks will, I hope, be of in¬

you

New England Inc., 68 Devonshire
Street.

minutes that

going to talk to

am

playing

WQfnr(S

in the few

so

bilities

with

that

terest to the young men,

A.

of

confidence

tempered and balanced

experience.

us

Goodrich and William A. Murray
affiliated

country hnd

young

by mature judgment and the voice

have

become

for Canada's future.

a

enthusiasm

in

Helen

optimism

with

business requires the vitality,

our

that

never

still

elected
the

one
in Maritimes
whose headquarters we
trace.
Of these 32

one

N. D. Young

assurance

and

annual

the

pres¬

William

was

President

first

our

Mr.

Montreal

members—13 in

—

are

I

BOSTON,

part

with

Ontario,

vi¬

We

my

(Special to The Financial Chronicle)

con¬

identical

membership fee

ported

dustry has
produced

And

Planning

a

held Feb. 5, 1917 at the Ritz Carl¬
ton in Montreal and it was re¬

50

our

of

first

The

country.
short

a

is

constitution.

members have

sponsibilities
circumstances

which

Canada

first

adopted—the

ent

Weis & Co.

With Investors

of

Toronto—and

the

and

with

in

first few paragraphs of

part its

on

Montreal

16, 1916, the organ¬
of
the
Bond

Association

held

not

CHICAGO, 111.—Albert J. Stall-

in

resting
saga relating
e

young men of
their day—filled

Arthur Krensky Adds

carried

were

meeting

stitution

t

n

sionaries

man

economy.

Dealers

June

on

was

cupied

no

Bond

members

and

This is under

Negotiations

i

same

will probably

ceptible

with

Dealers'

might read the

J. H. Crang & Go.

defense

against

munity to

I am hopeful that sometime in
the not-too-aistant future the In¬
vestment

will

likelv

Canada story might
that all our

man

still

are

Stresses

the need of

young men

Furthermore, our present econis in fact much more stable

of the problems that have and

some

accomplishments in the field of securities legislation.
high-grade investment concerns to a free

i96o

js another

generation.

the future.
omy

Reveals

Qf gaying that the Amerkan

economy
{han

pre-

cata-

public.

confronting their organization, and lists items which necessitate
careful watching by the Association.
Points out specific

shou,d

i60 in

cur-

World War II period, the burden
of proof would still rest on him
who

Vice-President, Dominion Securities Corporation, Ltd.
In tracing the growth and activities of the Investment Dealers'
Association of Canada, Mr. Young, its
President, stresses the
value of the organization to both its members and the Canadian

jndustriai

132)

aoproximately

and

rent economy were as susceptible

™

o:■

in
the
industry.

contrast, four out of every five
jy^ars
of our economic history

under

—

^Summary

sound judgment is

a

sense

Depression

be

tnable to maintain the hectic prob

proper

American

c

t?i.3

long-range
the first

the

to

our economy,

of
perspective.
There has been exactly one Great

a

Lorn

The

Fall,

improve in

year.

outlook for

of

to

though at a much slower
than in the first half of the

sjnalcon-

b,/

mass

President, The Investment Dealers' Association of Canada

conservative

F

next

a

and
d y

of

era

an

By N. D. YOUNG*

be

not

production after midyear, present
indications are that consumption

liquida-

y

by

the

in

productivity. On the
assumptions
with regard to these three factors,

rate of invent o

will

and in labor
most

.

..

sta-

o:
1954, turned upward
the
fourth quarter. The economic re-

covery

present economy is

'

~

General

our

stable than in past.

more

discernible

economy

employment, the future level of
industrial production will depend
upon changes in the labor supply,
in the length of the work-week

somewhat beclouded by the possibilities of strikes'in

as

now

American

Though looking for further momentum to business activity
1955,

U0ur Dignity Is Not
To Be Disputed

On the premise that the growth

^

Members New York Stock Exchange

until

of

business trends.

Brothers

Lehman

that

but such recessions are
by nature self-liquidating and do
not permanently divert long-term
1953-54,

By CHARLES T. BRODERICK*

Economist,

likW

recessions

ventory

The Business Outlook

Thursday, March 24, 1955

...

Mr.

J.

A.

all-important
Kingsmill was

appointed Secretary

on

his return

As¬

Continued

on

page

37

Volume

Number 5414

181

.

.

.

(1375)

The Commercial and Financial Chronicle

the

The Coming Boom in

all previous

peaks of almost

bull markets in this century.

Dividends

such

How

bull

a

•>

could

market

develop in response to rising diviin the years ahead is re-

By LEO BARNES

dends
Chief Economist,

/

Prentice-Hall, Inc.

Dr. Barnes contends stock prices do not yet

i

1119993454067082

stock prices would react to

reflect the coming

With

Dow-Jones

the

could rise to
in

Industrial

of

above

their previous

in

current

(1)

under-valuation

intangible

The

the

key

"confi¬

they'll pay more for
dollar of dividends; if

porate earning

the
cost of money.
Federal fiscal pol¬
icy can largely determine bond
yields. If money is made tighter

also

seem

have

to

substan¬

tially adjusted
for

the

sup¬

posed ly

per¬

manent

post¬
dollar

the

of

and the corre¬

the

in

of

case

many

vided

sellihg at
extremely high price-earnings ra¬
leading blue chips, now
tios

current

—

price levels have

dividend yield

by current
of 4.17%).

is
currently
raising bond yields slightly. Stand¬
ard & Poor's A 1-f composite bond
Tighter

money

boom could give strong un¬

idend

The upturn
.•and

in corporate profits

dividends started in the fourth

•quarter of last year and
•continue
through 1955.

is apt to
In

the

corporate profits
annual rate
•of $37 billion, up from $34.2 bil¬
lion in the third quarter.
After¬
tax profits rose to a rate of $18.8
billion,
up
from $17.4
billion.
These were the best levels since
the third quarter of 1953.
In 1955, profits before taxes will
probably come close to the high
fourth

quarter,

-before taxes rose to an

this

reason,

it

the

bull

dend
That

market

yields
level

will

drive

toward

investor

confidence

ex-

stock
3.5%,

kets, and drives average
yields all the way down to

much

sudden

of the excess profits

fidence results

money

investor

in

reversal

in dividend yields

could still boost stock
a

prices. With

10% rise in dividends, the Dow-

Jones

industrials

421; with
with

would

the

dividends in 1955 10high:

apt to raise
20%

forces which are

Only

money

if

and

much harder

very

real sag in investor

a

1929-1955

in

stock

then,

69.9%

8-10%

17.0

9.4
13.4

29.5

18.2

257

32.8

20.3

26.2

15.8

7.5

285

40.0

22.1

328

41.2

18.7

9.2
9.1
9.1

346

37.2

17.2

365

39.4

18.3

357

35.0

17.8

368—

38.3—

19.3—

373

39.0

19.7

dustrial

9.4
9.9

10.8—

62.2

12.0

265

TABLE

P-H forecasts.

are

STOCK PRICES

344

379

383

4.4%

391

421
431

4.3%

401

441

4.2%*
4.1%*

410*
420*

451
462

440
450
461
471
483

4.0%

431

474

495

3.9%

442

486

3.8%

453

499

3.7%

465

535

478

512
526

492

541

566

3.5%
"•Approximate
industrial

stock

recent
yields.

This announcement is neither an offer to
The

range

sell

of

nor a

the

D-J

,

Industrial

Donald
merce

558
574
590

average

and

is

now

&

Ohio—Robert C.

Building,

members

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Donald J.
Grail
has
joined
the
staff
of
Saunders, Stiver & Co., Terminal
Tower

of

Building, members of the
Stock Exchange.

Midwest

«.

i

i

i

(1) Total business
peak this year.

Price 100% and accrued interest

(2) Corporations will have more
cash available for dividends in the

because of both
accelerated amortiza¬

few

years

continued

defense

for

facilities and
under

Copies of the Prospectus may he obtained

regular depreciation
the new tax law.

faster

Many

(3)
out

a

larger

because

signed,

as

may

Last two

columns of the

the

Table I

The First Boston

Comparisons with pre¬
quickly show both the
relatively small dividend payout
since the end of World War II and
the rising trend in the past few

Corporation

Glore, Forgan & Co.

years

Blyth & Co., Inc.

Smith, Barney & Co.

Impact of rising dividends on
stock prices depends, of course, on

willing to
dividends. How
value dividends,

price investors are

for those
highly investors




Goldman, Sachs & Co.

Lehman Brothers

years.

pay

Adamex Securities Corporation

R. W, Pressprich & Co.

Hallgarten & Co,

Eastman, Dillon & Co,

statistical story on

dividends.

the

including the under¬

securities laws of the respective States.

corporations can pay
percentage of profits
investment re¬

absolutely.

war

from only such of the several underwriters,

legally offer these securities in compliance with the

capital

quirements are decreasing—rela¬
tive to growing earnings, if not

portray

.1

will hit a

new

tion

: '

Due March 1, 1975

the 1954 all-time

over

next

Due 1975

1

"

March

23, 1955.

the

Saunders, Stiver Adds

Joy Manufacturing Company
1955

of

changes.

$20,000,000

'

Mc¬

Company, Union Com¬

New Issue

'

for¬

affiliated with

solicitation of offers to buy any of these securities.

3%% Sinking Fund Debentures

Fran¬

Hannaford & Talbot.

offering is made only by the Prospectus.

.

San

New York and Midwest Stock Ex¬

544

5^0

and

(Special to The Financial Chronicle)

Fuller

492
504
517
530

508
521

York

CLEVELAND,

413
459
470
481

396

a

With McDonald & Co.

Dividends Over 1954 Is

0
10%
15%
20%
THEN—the Dow-Jones Industrial Average Would Be

__

New

merly with

—AND the Increase in Corporate

about

levels;

cisco Stock Exchanges. He was

II

IMPACT OF RISING DIVIDENDS ON

379,

at

current

Montgomery Street, members

of the
figures

lf)55

average

below

76.0
15% increase in dividends would
61.5
keep the D-J at 396, about 4-6%
below current levels; while a 20%
47.9
increase in dividends would main¬
43.3
tain stock prices very near to cur¬
35.7
rent levels.
35.5
47.5
41.6
With Walston & Co.
48.7
(Special to The Financial Chronicle)
52.9
SAN
FRANCISCO,
Calif.—
51.4
Chester
L.
Domer
has
become
55.6
54.8— connected with Walston & Co.,

7.2

257

3.6 %i

10% increase in div¬

3.8
4.0
4.5
5.8
6.5

22.6

IF—

a

$5.8

6.5

of Commerce.

serious drop

5.0

9.3

Department

a

prices likely to develop.

$8.3

6.4

232

divi¬

Dated March 1,

be

idends would support the D-J in¬

$9.6

,

are

then

15% increase, 440; and

20% increase, 459.

a

(5)

a

tax, after-tax

Here

a

con¬

rising to 4.5%, increased dividends

Even

126

3.5%.

$12 billion.

or

Percent
Payout

After Taxes

4.5%

.

20%

Corporate
Dividends

Profits

Profits
Before Taxes

209

has been reached near

profits this year will
run about
6-7% above '53 levels.
'They'll still be under both the
record high of $22.1 billion, set in
1950, and the second-best rate of
$20.3 billion in 1948.
The rise in corporate dividends
will be much sharper than the re¬
covery in profits. Never before in
U.
S.
history
have
dividends
topped $10 billion in a year. This
year, they're almost certain to be
$11 billion, might even approach

a

unlikely event

more

tighter

yields toward 5% is

101

final stages of

down

if

91

likely that soaring investor

in the

(3)

$104

higher than

confidence

in dividends, a D-J of 517.

Product

their cur¬
rent yield of 4.17%. On the basis
of historical precedent, it's much

more

D-J of 495; and a 20% in-

a

crease

5.0 %_

likely that investors will let stock
dividend yields in 1955 rise sig¬
nificantly

divi-

(Billions of Dollars)
Total National

Yield Is—

un¬

seems

D-J

a

in¬

15%

a

D-J of 590!

a

In the

that

541;

D-J of 566; and

a

However, because

1953.

of

levels

•of the repeal

For

mean

increase in

Corporate Profits & Dividends,

Average Stock

—

derlying support to the stock mar¬
ket
after the current technical
correction has been completed.

15%

dividend
10% boost

(4)

of

D-J

a

confidence force up average stock

Source:

growth
prospects for the next few years. yield is about 2.95%, up a shade
However, a good case can be from the bull market low point of
But investor
confidence
rnade for the view that stock prices 2.80%.
buoyed
have not yet fully discounted the continues undiminished
highly probable improvement in by reviving business and the solid
the dividend payout of many lead¬ prospects of long-term U. S. eco¬
nomic growth.
ing corporations. The coming div¬
discounted

substantially

would

senti-

TABLE I

1953______

on

too

least

—at

dollar of dividends
corporations
is

thought by investors to be worth,
the average, about $21 ($1 di¬

Dr. Leo Barnes

power.

sumably,

a

industrial

from

h asing
Pre¬

p u r c

bond

up

Currently,

its

of

flation

rise,

average

yields down to 4%, a
a

10% increase in dividends would

mean

increase,
investor

dends,

table

in

at

1929

tractive.

de¬

sponding

rates

yield

Year

too—making stocks
relatively less attractive. If money
is made easier, bond yields drop—
making stocks relatively more at¬

yields go

inflation

war

interest

that

so

factor of

tangible

The

(2)

stock yields.

comparisons

National Product,

they feel worried, they'll pay less.

They

power.

reflected in

4.2%, just above
where it is now, a 10% increase

If investors are in a con¬

same

as

20%

a

(1) If sustained investor confi- plodes into exuberant over-confi¬
dence merely keeps average divi- dence, as in previous bull mar-

fident mood,

cor¬

pushes

474;

confidence,

the
highlight these five facts:

two
of

ment

of

dend

dence."

of

terms

on

increase, to 492.
(2) h\ soaring

dividends

The

from 541-590.

depends

turn,

crease,

in

average

forces:

400, stock prices
have obviously adjusted for much
Average

range

aj.5% increase, to 471; and

vestor

bull market's later
stages yields will fall toward V-fa%, giving strong underlying
support to the market's price structure. On this premise, con¬
cludes D-J Average

higher

a

dividends at different levels of in-

improvement in dividend payouts; that in
}

It shows how

vealed in Table II.

in dividends would send the DowJones industrial average to 451;

11

Kidder, Peabody & Co.

Merrill Lynch, Pierce, Fenner & Beane

White, Weld & Co.
'

5

12

(1376)

The Commercial and Financial Chronicle

there

The Essential

Qualities
01 the Security Trader

voices

that

fact

rectors

tion's

President, J. R. Meggeson & Co., Ltd., Toronto, Ontario

of

Advises

integrity.

are

all

did.

the

to

to

tant moral

maintain.

I intend speaking particularly

values,

the

Toronto

Bond

of

members

recent

more

Asso-

Traders
i

c

t i

a

o n.

By
recent,

more

I

those

mean

traders

who

started

trading

on

desks

within

the

past

two

three

years.

O f

or

course,

I

what

I

hope

will inter¬

say

est

the

more

experienced
members,
that
J.

R.

approve of the

Meggeson

substance

f

o

will have read the

must

we

must

preserve

our

integrity. Today, with the ever
changing business methods, when
there is a tendency to honor men
for what

more

what

they have, than for
the maintenance of

they are,
integrity in our dealings must be
watched
hear

it

constantly. Quite often I
said

business:

that

that

is

ours

even

cruel

a

one

dealings,
thousands, and some¬
times millions, are
involved; and
hundreds of

firms

our

are

make

or

committed to accept

deliveries

a

week,

or

have

men

written

up

the

also

and.

Such

their own,
business.

country's

comment,

coming

from a
man in
Lord Beaverbrook's posi¬
tion, must create a profound im¬
pression
upon
us:
particularly
when
our

remember that he knows

we

problems

been

both

in

the

in

Canada

early in his

However,
veloped
tive

had

all

developed

but,

were

equally

clever

they

—

of

sense

a

and

career.

important,
but

to outsmart others. In other

good investment

are

even

if

we

have

de¬

*A' talk

there
by

Mr.

is

still

one

Meggeson

at

integrity, and these are the prin¬
qualities required for suc¬

release

cess.

and

The

best

I

wish

can

Stains of

asked

speak

economic issue which is

United

Government

fundamental

that it

other economic

be¬

That

the

is

question

whether

for

to

the

do

power to achieve

at

we

all

Federal

within

its

"maximum pro¬

cost.

any

We

inclined to

were

forget that monetary stability and

maintain

full employ-

goals of equal

ment without

country

have for

plus

inflation

able

protection is a little slip
paper, which we call a con¬

firmation.

There

are

no

nicely

the

Pennsylvania

the

and

latest

figures
of

revenues

Turnpike

Turnpike,
on

traffic

Pennsylvania

Commission

are

incor¬

drawn

So

legal

as

younger
over

the years go by, and you
men
in this room take

and direct the affairs of

our

Association, see to it that there
is no weakening of the ethics of
our trading
practices. This is one
business, where a man's word

younger

you.

trader?

facts

some

In

the

Well,

which

for

here

Turnpike

received

the

as

the

result

Delaware

Nov.

a

completion

River extension

of
on

are

interest

Investment

Dealer's

many years active and suc¬
cessful traders.
On the Ontario

Association

is

use

of

the

facility

was

expected prior to Jan. R 1955.

Up-to-date

information

on

the

progress

being made

tion of the

bridge

River

ware

Jersey
section

extension

of

to

on

construc¬

across

the Dela¬

connect

Turnpike
of

the

the

with

achieve

tions

at

and

the

turnpike is also

incorporated in the report.

of

the
Neil H.

icies

which

by

deficits
the

force

the

up

price

financing large Federal
through monetization of

public

debt.

But

inflation

brings dreadful hardship and in¬
equity, and weakens the very
foundations of

ety.

Price

democratic soci¬

a

inflation

be

can

pre¬

suppressed, at least for
by enforcing a compre¬

or

time,

a

hensive network of direct govern¬
mental

controls

purchases.
mean
as

of

wages,

prices,

employment,

inventories,

and

But

direct

understand

The

controls

end to economic freedom

an

we

central

it.

economic

question

enterprise

the

private
competitive mar¬

and

kind

our

of free

high

a

also

years—can

and

satisfactory

employment

under

sustain

level

of

regime

a

of

stable prices and

a monetary unit
dependable purchasing power.
Your and my long-term decisions
regarding our spending and in¬
as

consumers

in

turn

nessmen

In

we

the

able

the

busi¬

or

end

the

on

think should be

short

time

clearly

the duty to maintain

about

remarks

given

this

made

are

ber

of

the

few obser¬

a

issue.
in

Council

These

the light of

recent experience

my

as

of

a

mem¬

Economic

Advisers, which is charged with
the specific duty of
advising the
President

on

attaining

our

Lessons

Republics Corporation

and

ways

economic

means

of

goals.

of

the

Depression of

The 'Thirties

Employment
machinery to
It

purposes.

Council

Act

estab¬

its
three-man

carry out

created

a

of

Economic Advisers to
advise the President on
ways and
of

means

The
bers

of

maintaining prosperity.
requires that the mem¬

law

this

economists

appointed
at

serve

Council

of

his

be

cil

is

trained

recognized ability,
the
President to

by

pleasure,

and

con¬

The Coun¬

staff

a

matters

Chiefs

The Great Depression of the '30s
left deep psychological scars, here
The fact that millions

of

and

men

work

women

were

opportunities

deprived
for long

periods of time elevated to
position the

mary
of full

War

employment.

II

ended,

a

economic

the

miiltary affairs.

the

parties

Congress

agency,
the
influence
of
the
Council upon economic affairs de¬
pends mainly upon the Chief Ex¬

ecutive—whether
tens
it

to

in

its

not

or

advice

his

and

he

lis¬

acts

upon

to

other

instructions

agencies and departments of
gov¬
I can testify that Presi¬
dent Eisenhower does
rely heav¬
ernment.

ily

the Council.

upon

as

He

professional agency
praisal of the economic
a

uses

of

it

ap¬

situation,

and as an
objective adviser on the
economic consequences of
present
and
proposed governmental ac¬
tions.

When
was

for

President

considering
a

post

on

the

„

the

August, 1953, he
him at

Eisenhower

nominating me
Council, back in

asked

me

to visit

White House

summer

in Denver.

Sitting together there
the front porch of Mrs.
Doud's
home, the President made clear
that he regarded the
members of
the Council as
on

professional

He

pected

told

from

nothing
views

and

its

ex¬

that

ex¬

me

the

honest

•

he

Council

but

about

prospects,

all

at

candid

the

and

economy

however

un¬

palatable such views
might be, at
times, to himself as a political
leader.
He outlined his middle-

of-the-road approach to economic

characterized

as

over¬

passed

by Dean Jacoby at Town
Los Angeles, Cal., March 8, 1955.

has since
aptly

a

philosophy of

"dynamic conservatism."
derstood
viser
of

Hall,

in

staff

any

matters, which he

Employment Act (sic) of 1946,

•An address

Like

pri¬

whelming support of both major
political

the

as

Staff function

goal

After World

with

somewhat

of

times

and abroad.

of

lehman brothers

cur¬

people.

The

lished

perts.

arranged by the undersigned.

include

sound

a

rency, to respect the rights of the
states, and to preserve the eco¬
nomic freedoms of our

available, I

only to offer

vations

was

which

means

Joint

am

The transaction

by

were
"consistent with its other
duties and responsibilities." These
other obligations

nomic

produc¬

to this question.

American

ex¬

Gov¬

fore every other
country with an

answer

acquired the assets formerly owned by

Act

economy that organizes
tion
primarily through

vestment

Company

postwar

overlooked

Employment

before the United States, and be¬

of

Sinclair Oil & Gas

con¬

advisory agency to
the President,
functioning jri eco¬

over

through its subsidiary

early

often

was

long

economic

the

firmed by the Senate.

economy—which has proved its
ability to produce an amazing ex¬
pansion of our material welfare

Sinclair Oil Corporation

unnecessarily

direct

During

employment

brought about easily enough by
inflationary
governmental
pol¬
level

Our

ernment to pursue the
goal of full

Jacoby

be

can

economic

plicitly required the Federal

employ¬

ment

are

importance.

an

under

years,
it
that
the

time.

same

Full

for

trols.

these condi¬

the

Northeastern

bored
time

three

freedom

experienced a consider¬
inflation of prices, and la¬

problem

to

all

a

economy.

The

vented

17, 1954. At the time of the

financing
not

of

a

may

same

Commission

approximately $222,000 in unan¬
ticipated additional net revenue

free

in

economic

kets, is whether




States

duction, employment, and pur¬
chasing power."
For a time, our
country sought full employment

our coun¬

try.

.

making it the public policy of the

and

an

broad

fore

to

of

perhaps several weeks in the fu¬
when market values may
changed materially. All we

Executive of the

March 24, 1955.

we

of private enterprise
"secular stagnation" and

ture,

New

has

(1) if

powers

have

first

1955.

about

been

encompasses many

Pennsylvania Turnpike
Now Being Distributed

for

11,

have

questions

Association, three of the most re¬
cent ten National Presidents were

Association, Toronto, Canada, March

I

so

on

expansionary

"economic maturity" fallacious.

their

New Data

free economy:

a

Holds doctrines of

you

is, that you may fol¬
example, and duplicate
their good fortune.

the

Dinner of the Toronto Bond Traders

full

the

initiative.

younger men

low

member of the Presi¬

a

accept a reasonable and realistic definition of "full"
employ¬
ment, and (2) if the Federal Government pursues policies that

of

cipal

imporAn¬

ployment without price inflation in

words,

men

as

Advisers, reviews the downturn of

business in 1953 and the actions taken to combat it.
Lays
down as a thesis that we can in the future maintain
full em¬

never

They

did not cut sharp
corners, or spend their time trying

they

Jacoby, in telling of his work

dent's Council of Economic

can

Now, what of the future

a

Dr.

trading

a

Many interesting facts on prog¬
ress being made on the extension

having
must be as good as his bond—if
business,
delivery is to be completed.
England,

knowledge of compara¬
values, and have the trading

instijnct,
nual

intimately,

investment

Dean, School of Business Administration,
University of California
Former Member, President's Council of Economic
Advisers

some¬

course

contracts, no wit¬ porated in a new four-page
by Lord Beavernesses, no penalty clauses, and no pamphlet prepared by and being
brook,
which
were
published
bank guarantees. It is the
honesty distributed to Pennsylvania Turn¬
locally. In these, he pointed out,
of our traders and our
firms, in pike bond holders by Drexel &
that
the
greatest single factor,
their dealings with one
&
another, Company; B. J. Van Ingen
which could contribute to success
which is the greatest single factor Company, Inc.; Blyth &
Company,
in our free
enterprise system, was of
security in the fulfillment of Inc.; The First Boston Corpora¬
the development of a
trading in¬ our contracts.
Once
that
con¬
tion,
principal
underwriters
of
stinct. In other words, it is the
fidence in the reliability of any Pennsylvania
Turnpike revenue
development of a sense of com¬
individual has broken down, the bonds.
parative values, and the ability risk
in dealing is not justified by
The report points out for ex¬
to
trade upon
them, which en¬ profit.
ample that
the
Pennsylvania
ables men to build
articles

By NEIL II. JACOBY*

desks.

inten¬

tional misstep cannot be condoned.
This is not cruel, it is necessary.
In
our
day - to - day

of

remarks.

my

Most of you

and

they will

quality which

these

and

instinct

they

We

trading

on

Employment Be

Achieved Without Inflation?

di¬

or

still trading.

They

smart.

For the few minutes allotted

partners

thing in common? Of

against "cutting sharp corners"

Can Full

Trading Associa¬
firms, for many

our

served

Did

and trying to outsmart others.

me,

60

member

Some

possessed

by securities traders, Canadian investment banker stresses, in
addition to the trading instinct, a sense of values and high

members

may

over

of

years,

level

five

still be heard
on
the trading 'phones. But, per¬
haps more important to you, is the

By J. R. MEGGESON*

In enumerating essential qualities which should be

today,

are,

whose

Thursday, March 24, 1955

...

that, unless

shares

values,

his

there

a

chiefs
cannot

Continued

on

He

un¬

staff

ad¬

basic

be

set

that

page

60

Volume

Number 5414

181

.

.

(1377)

The Commercial and Financial Chronicle

,

central office from branch offices
or as outgoing disbursements to
Lending
always has been a
cover branch expenses.
Through
prime function of banks.
One
the imaginative use of improved
might think there is little new
wire communications, means of
that could be introduced in this
accelerating the flow of these
area but that is not the case.
1 We are especially indebted to funds have been developed with
Until
the
1930s,
commercial banks in the Southwest for pio- the consequent increase of imporbank loans in this country rarely neering
in this credit develop- tant amounts of working cash
exceeded
three
to
six
months, ment.
available to .the companies conThen
banks
developed the soFinally, let me cite one more cerned. For another illustration,
called "term" loan in response to illustration of a new type of loan let me cite an arrangement that
changing requirements of indus- —this time developed to accom- Chase has worked out with the
try. Today such term loans of one modate a special situation in the major scheduled airlines in the
to five years are commonplace, telephone industry.
There are United States, Canada and Mexand some terms run even longer, about 6,000 individual telephone ico. These lines share receipts reIt is not too much to say that the„ companies in the United States,
suiting
from
passenger
and
great postwar expansion of trade Many of them are small, ranging freight operations between widely
and
industry would have been from
a
half-dozen rural tele- separated points on the North,
impossible without the term loan, phones on up to many thousands, American continent.
The bank
It has been used to equip new fa-. yet they perform essential and effunctions as a centralized clearing
cilities, to finance the purchase ficient service in many places, agency for the settlement of the
0f machinery designed to cut costs After World War II, these comresulting inter-line balances by
ancj
to
carry
larger inventories panies were confronted with a simply debiting and crediting the
and receivables.
Term loans do crisis. Population growth, decen- accounts which the lines mainnot and should not replace equity
tralization of industry and tech- tain with the bank. Since the plan
capital and long-term debt, but nical change created urgent de- began in 1950, $1V2 billion of inthey do create an element of elas- mands for expansion and mod- ter-line bills have been processed,
ticity in supplying funds to busi- ernization.
Credit sources open The annual saving to the airlines
ness.
The importance they have to large companies were not at has been something like $30,000
innovations

examples of recent
in banking practice.

Banking's New Look
By DAVID ROCKEFELLER *
Senior Vice-President
Chase National Bank of New York

13

ough knowledge of the technical
intricacies of the oil industry,
Banks in the petroleum business
today employ geologists, engineers and economists to advise
them in making production loans,

_

Contending

revolution has taken place in banking in the

a

Mr. Rockefeller reviews recent changes

past quarter century,
and
of

changes in banking practice, and
loan techniques that

new

ers' growing

business."

banking is keeping

the

I

probably

that

uses

good

a

services

today
with

familiar

is

and

banks

both

Yet

dous

perform.

some

present
not

has
in

rev¬

been

was

natural, as

the

banking

orderly

been

is

scrutiny

none¬

Rockefeller

L>avid

view

will

and

believe this to be so,

I

review

with the

the small

further

where

areas

sale

con-

oi

securities.

purchase of
long

satirists

and

new

a;^

to assist in developing
long-term funds in

have

example

for

for

credit

extending

in

position

a

to

purchase

customers

Trust

with

a

Departfor

banks,

commercial

of

ments

of

problem.

special

pioneers in
trusts

been

the development of common

aiso

secu-

jn

which

proven

small

raany

the

blessing to
and

owners

development

the

trusts,

today's

in

a

estate

of

pen-

importance
capital

of

market

rities directly. Here was a case, js too well known to require
then, where a bank was called amplification.
But
rather than
upon to fashion a new mode of elaborate further, let me turn to
case,
the loan is made against financing for an important seg- another broad
development in
proven supplies of underground
ment of an industry. Without such banking one that in many reoil which the bank itself ap- financing, many independent tele- spects is as significant as the
praises. The security for the loans phone companies could not have change in credit, arrangements—
is the oil and the loan is paid off survived, let alone maintain their namely
the
growth of "retail
as the oil is produced and mar- growth and improve the quality banking."
keted. While this procedure now of service.
sounds simple and logical, 25
it is not only through the deRetail Banking
needed. The banking system
up with an ingenious solution—the production loan. In this

came

lend for the
regu-

was

basis

the

in

could be mentioned

was

Exchange

securities

was

sources

the

to

loans, some amounts as
$1,500. Part of Chase's

sjon

The amount ui

banks could

task

as

institutional investors who were

and

United

little

individual drillers, a

for

money

the petroleum industry,
expanding use of petro-

products

panies

legislation—

and

be

to

is

cases

which have

example,
established
ruies governing the issuance and

pected.
Cartoonists

by

Securities

The

Act,

be ex-

structive developments can

about

innovation

other

where creative banking has come

rather modest amounts as a
method of funding such loans.
This is accomplished by informing

banks.

I

recent

the

of

some

per year.

Chase stepped into this sit-

states, and the entrance into this
field of hundreds of small com-

ieum

of which have turned out to
be in the long-run interest of the

changes in banking and point out
certain

public,

in

found

some

society would be enhanced,

Because

that
have

careful
by the

and

close

the

should

The result was a numchanges, some internal,

brought

and

banks

of

quarters would
their ability to

some

modified

of

ber

fully recog-

be

by

agement.

were more

serve

given

a consequence

system

Another

government, and by its own man-

theless real.

in

to

making

It

troubles of the times.

but

the

available

industry.

became
for the

has

bankers

time

that

uation and, after learning something about the business, began

with the

gradual

nized,

in

revealed

000,000,000 in 1953, or about 30%
0f all bank loans to commerce and

associated

were

and

If it

is

assume

ones.

rev-

olution

to

come

their volume—approximately $8,-

cen¬

a

crash, going off the

closely
supply of credit.
Banks
a
convenient
scapegoat

day-a11

banking in
of

banking

the climactic
depression — the

gold standard and the bank holi-

occurred

tury. This

profound

a

of

the

stock market

which

tremen-

technological

American

Some
of

events

the past quar¬
ter

induced

and

the

on

system.

no¬

the

ticed

olution

social

effect

may

have

which

of

changes.
The depression had

suspect that

even

of its responsibilities.

aware

touched off mainly by the great
depression and World War II,

assump-

here

everyone

bank

a

services, and calls it "good
healthier and

Asserts banking today is stronger,

Asserts management is

merger.

tion

with custom¬

up

competitive, and defends Chase-Bank of Manhattan Co.

more

is

it is only through

says

needs. Describes growth of "retail banking" for

for small depositors and consumer

It

Cites illustrations

legislation that have affected banking.

lated by Federal act. The Federal

most oil producers had velopment of new loan techniques
The term "retail banking" is
to meet, the same credit tests that the banking community is 11C_H fft HPorrihA certain hanking
look with hard and unsympathetic
based on . financial statements keeping up with its customers'
.
eye
on
those who seek a loan,
which would be required of a de- growing needs. Many large cor- services made available to the
While
this* austere 'image
was
partment store or a textile mill. porations transfer substantial general public on a convenient
never fully
justified- it must, be
Departure from traditional standanother
reasonable basis. These servconce ded'that-the
traditional
ards was only possible because tunas trom one point to anotner
_T
rA
Continued on page 54
banking house with its Greek col- others which accompanied them, banks w«re willing to gain thor- as incoming settlements to the
umns outside and its vast and unwere
widely criticized at the
inviting main hall too often re- time.
Despite inequities, howminded one of a mausoleum. The
ever, some of which have since
customer
often
felt unwelcome, been corrected, their underlying
insignificant and ill at ease. Bank- wisdom is now accepted by most,

depicted bankers

as

conservativewho

ly attired, elderly gentlemen

ers

at

I> e p o s i t Insurance Corporation
was established to protect the
small depositor." The Banking Act
of 1933 prohibited commercial
banks
fro m .underwriting or
dealing in corporate securities
Most of these measures, -and

certain period in the past

a

frowned

salesmanship

upon

dangerous

as

and undesirable for a
The customer was

lending officer.

years ago

t,400,000

These
legislative measures
supplemented
by
other
forces and governmental policies,
Thus, the cheap money policy
were

Southern Pacific

which characterized the depreshe needed a loan, he could ask for
sion, and which was pursued,
it, figuratively speaking, on bend- during and for a time after the
ed knee.
I hope I need not tell
war, to help finance government
this audience that such
an
apspending, caused bankers to be
proach is long since outmoded.
more inventive in finding new
Changes in banking have been ways
to assist industry. They
expected to take the initiative. If

Company

Equipment Trust, Series QQ
2%%

Equipment Trust Certificates
(Philadelphia Plan)

were forced to become more sales
it would be inaccu- conscious and to change their ap-

especially pronounced in the recent

past but

rate

to

impression that

leave the

banking in this country was ever
It

static.
number

time

what

surprising

is

of actvities banks

a

at one

undertook, indeed in some
pioneered, with which

To

Proach to borrowers big and
small. Then
during the
J,earf yea^s °f *be depression and
during the war, banks did not
need or ,could not Tsecure larSe

To be

issued life as well as marine and casualty insurance. They
rency,

agencies and

travpl

wprp

rpal

p«?-

brokers
They underwrote
and marketed corporate securities.
In most instances these and certate.

functions

other

tain

!,™ iVL
them

izSF

aban-

were

banks
banks

commercial
commercial

bv
by

donprl
doned

hv

i,»ikr

performed

Iry

aeencfes

Apart

more

bene

(Accrued interest

more

on

The

wfnff

response

the

basic

their

These have been

,

,,

ii,

Recent Innovations

„

.

j

have

forces

indicated

which

some

have




in

of

worked

1968

3.00

2.60

1964

2.90

1969

3.00

2.70

1965

2.95

1970

3.00

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

Issuance and sale
The

such

HALSEY, STUART &. CO. INC.
R. W. PRESSPRICH

the

tem an(j

these

Some

forces.

•

FREEMAN & COMPANY

GREGORY

FIRST OF MICHIGAN CORPORATION

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

far-reaching

THE

ILLINOIS COMPANY
INCORPORATED

McMASTER HUTCHINSON

F.S.YANTIS &. CO.

JULIEN COLLINS &. COMPANY

INCORPORATED

&. CO.

MULLANEY, WELLS to COMPANY

significance of the changes that
demonstrated by

a

&, SON

INCORPORATED

to

of the reactions to
The

IRA HAUPT A, CO.

■

L. F. ROTHSCHILD &, CO.

&. CO.

BAXTER, WILLIAMS &. CO.

bring change in the banking sys-

<n'ub,*Ch£U" fc have been the result

1955.

2.85

1960

p

Banking Practice

century have been in
to fundamental upheav-

"h.8 Executives'

March

1963

the need for modern pers°nnel
P°licies to attract y°ung men of

from

———

lore

3.00

2.50

latedly turned their attention to

a

als in the world.

3.00%

1967

1

special-

great changes that have ocin
banking in the past

quarter of

1966

2.80

1959

™mpet"'ti^e: T.hhust banks f,?u"d to

ing and trust activities.
curred

2.75%

2.20.,
2.35

1958

for able recruits became keenly

deposit handling, lend-

function:

be added)

1962

2 20^

1956
1957

for banks but in
filustiy generally
A scramble
f"°
°nSer had gla™r as a career for
ba y°Z'Lr°J ^
industry was outbidding
them
So
bank
executives be-

to

1961

1056
1956

Taaks+ not

eir

and dividends by endorsement

MATURITIES AND YIELDS

SSteeship7, bani« have tended to ^f*"ber for their important
concentrate

as to payment of principal
by Southern Pacific Company

guaranteed unconditionally

^9

J*1611" c.a®rlr?

March 1, 1970, inclusive

$560,000 annually from March 1, 1956 to

i

s of new employees, planthey are no longer concerned. At ning on a bank career. At the end
various times, for example, they of the war, there was urgent need
issued and redeemed paper curfor men m the junior executive

instances

mature

can best be
few concrete

March 24, 1955.

/

14

(1378)

The Commercial and Financial Chronicle

Thursday, March 24, 1955

..

.

i

Common Stocks

Bonds,

Fire and

as

Preferred

Common
the

Stocks.

total

sum

By BARNARD FLAXMAN*

that

Executive of prominent fire insurance company discusses the
limitations of common stock investments by fire

there

the

factors

which

insurance

influence

risks.

company

insurance

of

reports

the

fire

and

casualty industry, you have prob¬
ably
been
so
much
impressed
with

the

large

very

gain

in

policyholders'
surplus that
might

you

have

over¬

looked
rather

the

poor

underwriting
performance
the fire in¬

of

surance

com¬

panies.

The

casualty

in¬

dustry underwrit in gwise
did
have
a

reasonably

ment

policy of

the

insurance

the

available

insurance

relatively

a

tion

and

some

that

the

nate

people

might conclude

secondary
and

analysis

of

published

portfolio

of

the

Investment

by

statistical

to

operation.

reminded

am

The

stocks,

underwriting is subordi¬

and

management
I

common

first

Trusts

of the national

one

and

advisory services.
writing
this
article

man

ance

the

companies

concluded

investment trust had the

vantage

of

ad¬

not

being burdened
unprofitable
underwriting

with

operations.

ten,

and

insur¬

This article

was

writ¬

position

that

the

erations

must

be

underwriting

investment

op¬

subordinated

that

and

the

to

risks

inherent in any investment opera¬
tion must be kept at a minimum
arid

also

related

that

the

to

Total

in

posed

cannot

such

risks

policyholders'

funds

two

be

must

sur¬

be

cannot

directions,

ex¬

and

if

exposed in any substan¬

in

be

underwriting

they

exposed

unduly in the
investment portfolio.

Furthermore,
policy must be
the

insurance

investment

a n

designed

so

that

will

company

be

able to meet any heavy losses that
it might
be faced with at
any

time;

that

verse

combination

a

developments

ad¬

in

not

and

account

of

any
and
impair the

affect

the

capacity to stay in the insurance
business.
be

On

pointed

1933

the

this

out

that in

period certain
fire

it

might

the

1929-

score

insurance

companies in
business

were

com¬

somewhat embarrassed, true tem¬
porarily, with the impairment of
their capital accounts, necessitat¬
ing transfer of some capital to

pletely apart and while stocks of
and casualty
companies de¬

surplus,, and this situation was
brought about largely by the de¬

clined

moralization

1928

call

I

as
or

best

can

early

that

recall, late

1929.

the

market

in

will

re¬

values

for

You

investment trust stocks fell
fire

less

very

they

drastically, neverthe¬

held

Furthermore,

up

fire

much
and

better.

casualty

paper

Annual

by

Dean's

ence

of

uate

School

New

York

the

at

the

2nd

Day Homecoming Confer¬
York University Grad¬

and

casualty
invest

New

principally

of

categories

Business

City,

March

Administration,
12,

1955.

such

varies

in

The

Bonds,

in
—

State

four

U.

S.

and

at

none

a

lack

same

to

of

therefore,

be

ap¬

It

can,

that

the

fire and casualty insurance com¬
panies show varying philosophies
of investment
policy.
A

study

premium

relationship of

writings to capital re¬
leading insurance com¬

of

sources

the

of

panies and the relationship of the
stock portfolio to
capi¬

funds

important
Government

tellectual"

tal

resources

to

or

writings the

policyholders'

folio

is

stock

relatively

and

where stockholders' resources

relatively

small

premium
stock

in

writings

portfolio

is

are

relation

the

to

There are, of
course,
to this.

consideration

much

one

mon

of

should

any

in

com¬

factors

must

stocks,

ing

exposure

invest

many

be considered:

how

(1) the underwrit¬
which

is

measured

in large
part, although not exclu¬
sively so, by the ratio of premium

volume

that

to

capital

ratio

funds.

might

Where

high,

seem

the

ness,

over

character

of

the

busi¬

underwriting experience

period of time, and protec¬

a

tion afforded
through excess
treaties; (2) the size of the Gov¬
ernment portfolio and its matur¬
ity arrangement; (3) the munici¬
pal bond portfolio
its quality
and
maturity arrangement;
(4)
—

Also
stocks

(and

extremely
holdings of

the

must

be

related

policyholders' surplus.

Municipal

Continued

appears

only

as a matter

of record.

be

is

of

one

phrase
with

They

phrase

share

if

besides

their

throw

to

in

debate

and

fellow

Latin

a

satisfied

not

Carlisle

ask their fellow
know what the

Bargeron

means.

extent
from

they have" been through college, but they have been

the

they

than

with life

the

reading of erudite books.

in its naked

what Aristotle
said

on

away

40 years before

or

to the Senate and engaged in something more produc¬

came

tive

during the intervening 30

campuses

form and

Plato

or

such

as

Latin phrases and

Methuselah

even

or

They have been dealing

things

is

purported to have

given occasion have become lost to them.

a

Fulbright,

impor¬
common

to

the

the

page 59

of

youngest

unpleasant in this respect

fairly liked by his colleagues.
the three.

whom

a

three

They

are

on

educators,

They talk

scientists

which

the

being

in

house

the

sun

to

be

not

as

fact, he is

esoteric
to

come

if

not

language of the

prevail

land-lady

did

all

in

the

in

renowned

economists

They

and
the

over

"think¬

are

days when the

while

work

All

scholastic

times

recent

of

one

of the mine

run

against the "do-ers" and different from the

boarding
sat

In

citizenry sends to the august body.

builders, the bankers, the captains of industry.
ers"

is

50,

But he considers himself

recognized

has

trio,

plane higher than the

a

too educated

not

circles.

are

the

Douglas and Morse.

as

her

husband

"thinking," the profession of "thinking" has

come

highly profitable and influential endeavor.

a

Fulbright has not attained the publicity stature of Morse and
Douglas, to the extent that young reporters
his

knee

and

receive

wickedness of the

"liberal,"

lectures

rest

different

mankind.

of

far

and

how

on

more

daily to sit at

come

righteous

Yet

he

he

is

considers

enlightened

than

and

the

himself

the

a

usual

breed of Southern senators.
The
due

home

reason

the

to

old

town.

upon

as

man

as

a

for

his

adage

Though

not

having attained the stature

that
a

one

native

is
of

never

for

Arkansas

an

be

may

in

his

own

Arkansas, Fulbright is looked

Washington product because he

Secretary

prophet

a

here

came

member

of

as

a

young

Congress.

He

graduated from George Washington University here, subsequently
worked

Thus

in

the

Department

of

Justice

and

went

to

on

Oxford.

equipped, he became President of the University of Arkan¬

thence

a

member of Congress and

finally

elected to the

was

Senate.

and

reason,

why

one

he

has

not

been

completely

by "liberals" Douglas and Morse, is that being erudite
he is, he has had enough sense not to sound off about
anti-

issue

and

in the matter

"liberalism"

versus

of

the

"greedy

Dixon-Yates

selfish

canteen

covers,

made

for civilian

of

"greedy selfish interests"

he

an
was

under the contract will build

$100

a

plant in his state.
as

sort

of

and

"liberal"

from

has

considers

been

balance

a

the

against these digressions

the

uncouth

"wave

the

from

ranks, the holier than thou-ers
practitioners

frequently lifting

"McCarthyism,"
and

contract,

interests,"

much for the contract and the "greedy selfish interests" for

very

the

of

of

his

of

practical

indignant voice

anti-intellectualism"

ing in the country, meaning, the treatment

products

to

as

Now, most Senators have had good formal educations; to the

tinguished

and

refer

two"

toward

prone

that, they are apt to
pointedly if they

he

forces

other

are

them

at

he

The plant is located in

The

Senators

But

share)

armed

who

seemingly

You might ask them

intellectual

Common Stock

webbing and nylon for the

times

condescension

Senators.

299,700 SHARES

canvas,

and

intellectuals,

"intellectual."

million

per

ap¬

Fulbright, are Douglas of Illinois, and Morse
of Oregon.
The attitude of these latter two

as

Business: The Company manufactures
army tents, cartridge belts,
parachutist equipment, ponchos and various other

to

one

embraced

(a New York corporation)

Price $1

apply

that

the

that the term "in¬

me

is their vocation aside from
being a
Senator, whether lawyer, businessman, doctor
bricklayer and their reply, in effect, would

sas,

CONCORD SUPPLIES & EQUIPMENT CORP.

per

stock

of

what

segregation,

(par value, 10c

the

intellectuals

or

One must

on

of these shares having been subscribed for, this advertisement

days

as

Another
All

might

you

something

their profession.

is

preferred

tant),

"studying"

three members of the Sen¬

are

these

in

a

thorough knowledge of under¬
writing policies is important, in¬
cluding the spread of the busi¬
ness, the

there

But
ate

rela¬

Considerations in Common Stock
Investments
In

been

common

likewise

tively small.
exceptions

has

self-avowed

three

that

one

fellow, not
plied to himself.

port¬

large,

common

is

another

common

surplus would indicate, generally,
that where a
company has very
ample capital funds to premium

the

Somehow, it has always seemed to

that

uniformity

concluded

Senate.

with

mini¬
others

stocks.

common

Committee

of

one

themselves

substantial holding.

very

Banking

is

pre¬

widely,
a

Senate

market,

hold¬

stock portfolio—its
and (5) the quality and
character of the common stocks.

insurance

their

the

The policy with

quality;

Investment

companies

or

plies

the
Wide Diversification of

of invest¬

Mr. Flaxman

security markets
underwriting

performance.

Fire
*A

of

rather than by poor

underwriting turned quite profit¬
able in that period.
In any consideration

makes

investment

stocks

having

all

at

times, particularly in the face of
adverse developments.
Speaking
for my own group of companies, 1
might say that we have taken the

all directions must

of

that

posi¬

maintained

capital

that

and

capital

strong

vestment

to

in¬

be

that will

manner

compared the potentialities of in¬
trusts

that

and

must

contracts

be

must

way

of

a

times insure the sanctity of

at all

the

tial

value

business

funds

vested in such

are

gain

ferred

By CARLISLE BARGERON

a

in

all, and

primarily in

are

to

Governments

mum

companies

they

market

Taxes

of the News

Senator William J. Fulbright of Arkansas, who as Chairman of

maxi¬

a

important point and that is that

policyholders' surplus was due al¬
most exclusively
to the gain in

large

S.

ings undesirable.
to

i!

vary

bonds

having

plus.

The

year.

and

certain companies

in

good

Income

fire and casualty

a

U.

;n

minimum

a

will

of

minimum in U. S.

company, we must emphasize one
these

Ahead

uni¬

any

makeup

municipal

Washington

and

municipals.
Holdings of corporate bonds are
generally very small because the
impact of
Federal
Corporation

purchasing stocks at present high values.

looking at the

of

Barnard Flaxman

bonds

in

respect

If you have been
annual

a

and

companies in determining

portfolios, and indicates the wide diversification of secu¬
held by these concerns. Concludes fire and casualty
companies have a definite place for common stock investment,
warns

The

portfolio

maximum

rities

but

all.

at

be

to

seems

bond

mum

Describes the

their

I

From

with the

of collec¬

course

Government

casualty insurance companies, and explains the relations
to

be

its

bonds, cash

widely from

nature and

investments

to

cover

seems

liabilities

all

and

tion, but it is only in this instance

formity

and

of

premiums in the

Vice-President, Hartford Fire Insurance Company

of

It

industry's policy to

total insurance

Casualty Insurance Investments

Stocks

alleged

witch-hunt

of

the
dis¬

politics,

against what

that

Dr.

against

as

is

develop¬

Oppenheimer,
security

risks

such.

use.

Russellville, Alabama.

Likely his "study" of the stock market is in this

same

vein.

Underwriter

Franklin9Hfeyer & Barnett
Member of New
120

Broadway, New York 5, N. Y.




In

Washington, D. C.

PORTLAND,
Thompson is

York Stock Exchange

REctor 2-5788

Joins Walston Staff

Walston

821 15th St., N. W.

With

(Special to The Financial Chronicle)

&

Morrison

Oreg.

now

Co.,

Street.

—

Lewis

associated with

621
He

Southwest
was

previ¬

ously with Merrill Lynch, Pierce,
Fenner

&

Beane.

Gallagher-Roach

(Special to The Financial Chronicle)

R.

COLUMBUS,
R.

Smith

with
pany,

has

Ohio

—

become

Gallagher-Roach
Lincoln-LeVeque

Lawrence
associated

and

Com¬

Tower.

Volume 181

Number 5414

.

.

funds

evidence that the selling was be¬

these same
issues, earlier investors were de¬

rather than the informed investor.

because

erated

Year's Best Buying

Opportunity

Partner, Talmage & Co.

supposed

beyond its

lucky

Humphrey,

earlier

pose

this

month

so-called

began
the
as

for

fear of

The

facts,
using

of

than

Most

early

til

expressed

be

the

that

taxed

opinion

capital

gains

ordinary in¬
come. Last Wednesday it was even
proposed
that
General
Motors
reduce

should

automobiles

as

the

price

that

so

the

of

its

farmer

No

Senator

witness

or

so

much

if there are such,

cesses,

outside

the

securities

ex¬

lie

may

markets

in

like

housing, where a new
may be bought for a
10%
even smaller down payment; or

areas

house
or

merchandise,
from

of

sets

to

cooking

the

in
power. With the memory of this
long period of persecution still
by

fresh

in

naive

being

then

people's minds, it

rise

price

sharp

(notably the steels)
to
earning power, not¬
a
40%
decline in

It

us

observed

factors

these

instead

continued

have

As

undisturbed.

course

is, the

hearings have been carried on the
front pages of

been

all our newspapers.

In

the

seems

show

surprise that

in

unsettlement

stock

market.

ous

hearings have

given

little

cognizance to the great differences

have

ginning

of

reacted

speculation and have implied
that sharp price rises
must in¬
variably be speculative in char¬

amount

to

acter.

rise

between

and

began

when investors lacked the

confidence

installment

the

to

in

invest

any

but

and

cannot

this
cool

that

year

off

uninformed

if

would

irresponsible

since

from

in

the

speculation,

the

be

past year's
considerably

ganization since 1922. He became
a
Director and Vice-President of

sales

running

purchases

served

50%

of the Ex¬
since 1951.

has been with the

Mr. Pattberg

corporation since 1929.
He was
elected a Vice-President in 1945,
in 1951

Director

a

member

mittee

and became a

Executive

the

of

in

Acquires
American Republics

offices at 18 Wool-

Avenue.

BROOKLYN, N. Y.
has

Ocean

securities

quired the assets formerly owned
by American Republics Corp.
This transaction was arranged

by Lehman Brothers, New

Opens

Perry T. Blaine

(Special to The Financial Chhonicle)

ASHTABULA, Ohio—Russell T.
J. Rene
offices at Pilkington, Jr. has become affili¬
conduct a ated with Perry T. Blaine & Co.,

to

4519

business.

Main

Avenue.

,

largest companies, and accel¬

INDUSTRY

HOUSE
'

299,900 Shares

:vr

AMERICAN BEAUTY HOMES, INC.
COMMON STOCK

t

(Par Value 10c Per Share)
"t

'

•

'

'

:

%■

Offering Price: $1.00 Per Share
2"

*"J

Business: The
at

Company intends to

will be used to

PREFABRICATED
are

being produced at

rate

of

and necessary

itOMES

approximately

CORPORATION;
About $69

pared with about 75,000

for each

homes is

one

a

•

v

Ihe

undersigned only in such states as fhey are registered dealers.

HOMES,

HUNTER SECURITIES CORPORATION

INC.

prefab¬

About $7

ricated unit.
*
.

•

We maintain markets in

Investments

52

Share

a

Broadway

New York 4, N. Y.

Dlgby 4-2785

*
„

READY-MADE

the

following three overthe-counter stocks, rep¬

BUILDINGS

resenting publicly

About $3*/£

-

'

Copies of the Offering Circular may be obtained from

Share

a

TECHSUILT

14 standard
now

Street, Houston, Texas.

•

1954. It is

year

estimated that about

for erection

NATIONAL HOMES

100,000 this year as com¬
for the

in the pre-fabrication and assembly of homes

offered hereby
finance the development, construction and erection of-partially pre-fabricated homes
sales development and advertising. The principal-business office of the Company Is

located at 10509 South Main

a

engage

proceeds realized from the sale of the shares of Common Stock

local sites, and the

held

a

INC.

CONTINENTAL SECURITIES CORP.
4307 Montrose Blvd., Houston Jexas

•

42

LEPOW COMPANY

Broadway • BO Green 9-0350

Share

companies in this growth

Please send

industry.

Name

me a

copy

of the Offering Circular of AMERICAN BEAUTY HOMES, INC.
-

Address

Aetna Securities Corporation
UNDERWRITERS
111

Broadway




•

DISTRIBUTORS

....State.

Telephone
New York 6

~

York.

—

opened

Avenue

the Sinclair

through its subsidiary,
Sinclair Oil & Gas Co., has ac¬
Corp.,

New Issue

PRiFAB

Com¬

1953.

Sinclair

Joins

682

1934 and has

Chairman

Committee

ecutive

Halsey Opens

business from

Marandon

over

as

It is announced that

J. Rene Marandon

presumptive

—

corporation in

the

is engaging in the securities

lard

to that
Forbes or¬

1934 and prior

with the Chase Harris

ALBANY, N. Y.—Elmer A. Hal¬
sey

been, has accomplished just that.
Last week's selling climaxes saw
lot

careful

of the Ex¬

my

E. A.

the

sufficient

a

strengthened. In our opinion, this
recent
reaction, brief as it has

odd

the

any

headlines,

too

wheat

be

The

tion

Oil

investment basis of the

odd lot

In

conclusions of

newspaper

created

has been associated
First Boston Corpora¬

with

unhealthy confusion.

by now.

market

exist

J»'.

Mr. Linsley

thought since the be¬

investment

which

from

Linsley to the / newly

berg, Jr. as Chairman
ecutive Committee.

opinion, the recent
unsettlement may, in retrospect,
prove to be the best buying op¬
portunity of 1955. It has already
cleared the air of a good deal of

performance as this, he

trouble

We

Linsley Emil J. Pattberg,

R.

post of Vice-Chairman.
The di¬
rectors also elected Emil J. Patt¬

opinions

same

and more.

drawing

chaff.

might have found himself in seri¬

the

a

expressing the

separating

command
such

their

in

one

individual had been able
the news spotlight

private
to

should

from

Senator

re¬

news¬

for

selected

were

sort

and,

mony,

The

not point out
instances (a) the

many

for ten years

been

have

investors

Uninformed

for

reasons

fields quite unre¬
lated to the problem of investing
individuals' money for profit and
(b) a number of the leading eco¬
nomic pessimists whose ideas have
been
publicized
recently
have

its

on

it

stock prices is

over

best

optimistic.

experience

spectres from the past, the market

might

in

that

raising

of

fear
the

witnesses

of

some

Duncan

R.

accounts do

paper

that if the comr

had

mittee

stock

maining

be called speculative.
to

seems

be

be

of

of

one

but

rapid

been

has

to

express

the same $10 seems
worth about $75.
The im¬

market. Today

hardly

which
can

think they are
qualified to do so. On the
basis of the record, the fact that
some
of our leading economists

volume. In the early 1950s,
earnings in a steel stock
would be worth about $50 in the

can

in

business

time

more

of

provement

giving of investment advice

of others who may

gross

be

mildly depressing
present high-pow¬

dogmatic about the
prices
and
are
highly suspicious of the opinions

withstanding

to

protracted

a

quality of the opinions

level

maintain high

$10

particularly in the
and steel in¬

economy.

not

ability shown by "cyclical" com¬
panies

announced the election of Duncan

pub¬

judged only by results. We have
made enough mistakes in the past

past year and a half is the

hearings caused

his

that

sold to impecunious buyers on the

plan.

the

to

100
City, has

a

the

full

a

the

con¬

Ar¬

kansas

in

politicians

chips" during the past five years

is

of the

has

be

York

New

Broadway,

of The

Corporation,

Boston

First

directors

of

board

The

copper,

than

on

The

is

unable to see things
in perspective, sold stocks which
in many instances may have been
substantially undervalued.
If a

television

utensils

effect
ered

frightened by much of the testi¬

tem

being

They have, to date, failed
completely to show that the enor¬
mous
price
increase
in
"blue

and

tributed

which

factor

levelled

propaganda

Linsley & Pattberg

the

on

to

reports

Even

more

no

pay

against the whole capitalistic sys¬

everything

where

automobiles

We also
1931 virtually un¬
years.

a

The

hinted that the speculative

iri the past. Yet

prices doubled again in the

three

5% after taxes).
conditions, there is
incentive for leading cor¬
to

Another

many

1953, stocks were low—largely
result of a constant barrage

as

could buy more of them.

as

know stocks

we

had

know that from

suggested

should

but

ever

following

B. K. Thurlow

that stock prices were abnormally
high;
many
suggested
curbing
speculation by higher margin re¬
quirements; and at one" point, it
was

it

stock

and

the

without

have for¬
gotten that the market "looked"
higher to most observers in 1926
high,

were

economic

witnesses

heard

not is, in our opinion,

From 1926 to 1929

promul¬
their

theories.

was

political reprisal.

or

see

we

General Motors strike should have

these

little

Secretary

so

dustries.

of more than

porations to issue new stock. The
government has made it greatly to
their advantage to go into debt.

safely answered only by hindsight.

gating

beliefs

pected

quarter

automotive,

the stock was ex¬

(because

Under

question of whether stocks

high

are

-platform

own

10%

competent to express an

opinion and free to do

hearings

a

both

was

as

ex¬

testi¬

mony to

in

committee

the

First Boston Elects

in the street

man

on

lished in years,

fi¬

equity

decade,

past

company an average

testimony from one witness who

perts, instead
of confining
their

that

indeed

first

cost of 314% while dur¬

nancing would have cost the same

factual discus¬
degenerated to
the other hand,

a

politics. It is, on

avowed

pur¬

be

to

quickly

so

a

the

ing

Fulbright investiga¬
tion, and asserts the question whether stocks are high or not
is not safely answered merely by hindsight. Holds if the Ful¬
bright Committee had not raised spectres from the past, the
market might have continued its course undisturbed, but points
out
the recent unsettlement may prove the best buying
opportunity in 1955.

sion

by

debt at

unfortunate that what

here

siderations from seeking a

Stock market analyst decries trend of the

It is

From

return elsewhere.

Member, New York Stock Exchange

widely publicized Fulbright
Investigation, at first described as
a
"friendly study" of stock mar¬
ket
conditions, went somewhat

ing done by the

capital gains tax con¬
better horizon the threat of war in For¬
One might also mosa, which, in our opinion, will
put most stocks
higher
observe that under our present tax surely
Immediately
system, a large company may fi¬ rather than lower.
ahead of us are some of the best
nance its expansion via long term

terred

By BRADBURY K. THURLOW

The

new

as

sought investment in

Market Setback Seen Providing

15

(1379)

The Commercial and Financial Chronicle

.

—

•

New York 4

J

16

(1380)

The Commercial and Financial Chronicle

in the atomic

propulsion field able

this

week

to

out

carve

Thursday, March 24, 1955

...

Cement shares also seemed

than from its Convair

plane- a good gain with a ranking to have discounted the im¬
making operation, the better of third most active for the mediate bright prospects and
acting number of the plane day.
there was little
noteworthy
*
*
*
group
was
United Aircraft
in their
trading performances.

THE MARKET... AND YOU
STREETE

By WALLACE

with

from

Backing
the

over

week

filling

lowest

spirited

this

of

some

definitely

there

took

market

stock

with

sions
the

and

in

the

volume

since

post-election

with

way

the

the

runup

*

*

Engineering

limelight
implications

defense

matter of

a

of

this

fact, in the
week

the

In

fact, they

clined

of

and the net results

ence,

downhill

whirl with such items

where.

as

Ser-

when

through much vel, Howe Sound, Continental
see-sawing experi¬ Diamond Fibre, Oliver Co.

same

in¬

more

than to share in exhuberance
it

was

Steels went
the

on

were

flutter

to

low-priced issues were given
fairly spirited speculative

See-Sawing Steels

the

As

doldrums

*

*

*

into

moved

'

assistance

anyone.

Combustion

on

under¬

any merger
*

ses¬

rut

a

was

occasional

Boeing.

and

were

Zonite

Products

rampant

❖

*

else¬

*

Automotive and rubber is¬
sues

were
emerg¬
largely marking
approximately the same — a ing on at least high activity. time with an eye trained on
wide gains which, again, led
*
*
*
ago.
consolidating pause. Bethle¬
the wage negotiations
getting
porarily, the wilder gyrations to some rather vague linking hem continues to be the wider
off to a slow start. Even some
started by a boost in
Copper Helped by Price
margins with other issues that were moving member of the fer¬
rather optimistic estimates of
in January and culminating also
Outlook
doing better than the rous family with the capacity
Chrysler's earnings potential
market. These included Gen¬ of
early this month as the Sen¬
Rumors of even higher
swinging over multi-point
for this year failed to stir
up
ate study of the
marketplace eral Dynamics, Bath Iron, arcs while most of the others prices
for
the
red
metal the issue
much, largely be¬
Foster Wheeler and Babcock in the division
served
to
got under way.
were content
keep the copper cause it is
generally antici¬
& Wilcox.
There were some with moderate movements.
issues popular and
they were pated that the early months
indications in all cases that
*
❖
*
For nourishment, the
in the forefront of the better will be the
best, sales-wise,
part of the popularity
traders turned
to
corporate
Chemical and drug shares advances
despite the dull and that all bets could be up¬
stemmed from switches from
reports, the annual meetings
set by any drawn-out strikes.
the
prime aircrafts to this presented little encourag¬ markets. There was little to
now
*
*
*
starting to pile up, and
somewhat different field.
ing and it didn't help the choose among the issues, with
the
old
standby of likely
Oil
interest turned
from
❖
*
*
overall tone when
Schering Kennecott, Anaconda, Mag¬
the better-known names and
mergers.
What spirited ac¬
Nevertheless, the aircrafts tumbled a bit on a govern¬ ma,
Inspiration and Chile much of the fanfare in indi¬
tions there were came under
didn't fare too poorly. With¬ ment action to unlock its hold
Copper all turning in good vidual issues was traceable
these influences.
out too much
selling around, on some patents of several performances. Some of the directly to good earnings re¬
%
*
5.'!

started

its work

nearly five months
It ended, at least tem¬

rolled

and

up

some

,

they weren't called
Electronics
In

the

Zenith

electronics

Radio

Carlson

Stars

and

were

the

star

followed

was

to

per¬

snap

formers, immediately leading there
to

back,

all progress.

founded

expectations

that

eral

bumped

into

denial

from

flat

a

by good ability

wasn't

interesting but ill-

some

to be years

on

DuPont

ago.

targets and what overly

Dynamics,

which

ably derives far

Stromberg officials that

Allied

great over¬ dawdled

Except for Gen¬

of

the

prob¬ drug

more

spec¬

ulative interest from its work

disposition to

a

for

the

better-acting

section

the

was

priced Rexall Drug that

sionally has

Silver

non

were

but

their

has

occa¬

run

out

demand,

gold issues continued

pedestrian

been

time

was

a

International

to have

seems

and the

the

able

something of

up

the

ways,

case

Deep Rock Oil

ferrous ports.

-

also

of steam after recent

low-

whirl, and

a

build

to

One

in

issues

following,

re¬

Chemical
most.

assorted

metal

any¬

sell down harder than to

though bound.

even

any

wasn't other

bouyant and, if

section, easiness they did experience thing, showed

Stromberg

the

prime

for

which
some

the

was

erratic member of the section

this week

and

rather

some

went

wide

through

gyrations

both sides of the line

on

within
sion.

even

single trading

a

ses¬

Amerada, which still is

the top
ment

favorite of the invest¬

companies despite

un¬

impressive action in the latest

now.

phase
r

of

favored

bull

the

the

market,

side

easy

more

times than not.
^

❖

THE

DIAMOND

MATCH

COMPANY
Rails

122

East 42nd

Street, New York 17, N. Y.

from

far

were

tinguished except for
casional outburst

1954

ANNUAL

(in thousands of dollars)

1954

December

1953

1954

sales

$100,787

Dividends

.

.

220

.

Miscellaneous income (net)
total sales and

31

1953

Current Assets

Other Income

other

.

.

3,198

10,213

8,779

Inventories

1,100

26,949

and

~ 51,357

46^633

98,239

total current assets

Cost of

Expenses

Accounts

Accrued

product sold, including wages,

materials,

3%

etc

75,118

73,772

.

•

.

,

14,601

15,025

2,744

taxes

.

.

2,799

.

1,055

870

.

less federal tax notes

Notes, instalment due May 1

.

.

600

Depreciation

.

Central continued

and

among

roads.

A

Eastern

the

of

measure

the

neglect in the carrier section
fact

the

vania

that

the

was

Pennsyl¬

only rail able

make the

to

active list

most

2,100

payable

759

743

5,213

"" 5,114

46,144

1,884

2,706

3,017

18,263

18,525

1,341

1,358

.

70,338

67,153

.

7,800

8,400

couple of sessions

a

run¬

2,734

Standing timber
Property, plant and equipment
Prepaid expenses

for

41,519

total

.

dip

400

3,101

Investments

.

week.
to

easily while Pennsyl¬

active

was

payable and accrued liabilities

Dividends

Selling, administrative and other
expenses

rather

tended

30,511

,

.......

Current Liabilities
Costs

Island

$ 4,145

10,132

,

Marketable Securities

241

101,634

income

$ 4,063

Receivables, less Reserves

$96,898

627

.

this

a

Sea¬

in

runup

Line

Air

Rock

vania

Cash

Net

steep

oc¬

including

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

(in thousands of dollars)

and

rather

board

CONSOLIDATED STATEMENT OF INCOME AND EARNINGS RETAINED

Sales

SUMMARY*

REPORT

dis¬

an

........

current liabilities

working capital.

.

.

,

.

.......

ning.
*

*

*

Other Assets

Depletion
Interest

.

.

.

•

.

.

•

Federal taxes

•

•

t

•

•

•

i

•

income

on

.

i

348

352

i

261

271

•

•

<

3,000

.

2,400

96,072

i

•

total costs and expenses

93,920

The

....

working capital and other assets
i

Net Income

for the

Year

•

5,562

4,319

Earnings Retained, Beginning of Year.

19,755

18,408

25,317

22,727

•

•

•

Deduct
3%

.

.

.

$62,538

'

$58,753

Preferred, par value $25, outstanding
600,000 shares

Preferred stock

i

Common stock

900
•

2,150

•••««•#

Common,

15,000

value, outstanding,
1,067,236 shares 1954,1,036,060 in 1953

900

2,072

no

$ 22,267

2,972

$19,755

25,271

23,998

Great

Name

in

Matches,

Pulp Products, Lumber,

L




pleased to furnish

a copy

of

our

Annual Report

on request to

was

line

pat¬

major

in

back
this

and

22,267
Earnings Retained

.

.

trading, making it the
-

cur¬

was

active

$62,538

'

38,998

as

issues

selling at $200

but there

was

as

any

of the

or more

little of convic¬

19,755

$58,753

tion

in

its

The

enough
to

meandering

one

the other.
sfc

Building Supplies and Woodenware.

the Secretary of the Company.

issue

S. Gypsum

priced

U.

rently.

Experience from 1835... Methods of
Today... Forestry of Tomorrow.
*fVe will be

$1,000

a

the

week's

way or
A

of

Superior Oil

the

issues

about

40,271

Earnings Retained
Capital Stock

15,000

par

total capital stock

3,050

priced

irregular

as

most

as

over

-

Chips

highest

Capital Stock

1

in

groups.

Notes, instalments due 1955-1968

Net Assets

Dividends Declared

high

turned
tern

Blue

Bluest

The

blue

$

^

chip section had

backward

members

keep the pattern irregular,

Volume

181

Number 5414

Kodak

^l+,r

alty

Gulf Securities Opens

intent

serious

any

down of heeding the majority opin-

selling

(1381)

The Commercial and Financial Chronicle

"

HOUSTON, Tex.—Gulf Securi-

GO.

persistently.

q

Technically there was little
significance in the overall
performance. Despite a rather
widely held opinion that the

of

lows for the

correction have

switched this week to a 1955
asl^\ a a 1 s . ® 1954-55
^
^ use so ar is yea .
[The
article

views

expressed in this

do not

necessarily at any

and Boston Stock Exchanges.

January bottoms without those of the author only.]

Louis Ambrose Opens

(special to th» financial chronzcle)
BOSTON, Mass.—Robt. P. Dalton has been added to the staff of

jam Air A

of

carbons reached

liquid
a new

Foster & Marshall.
F

CliVL-

A

'

.*

.

'

'

brose ls engagmg m 3 securltles ra^on j's engaging in a^ecu^ifies
business from offices at 176-17 5us^ness from offices at 445 Park
Ninety-third Avenue.
Avenue, New York City.

The SINCLAIR Story
Production

department of the local office of

Y —Louis Am-

N

formerly

£g Mr. o Lewis

ton stock Exchange.

Draper, Sears Adds

yet to 'be seen, the list con- time coincide with those of the Draper, Sears >& Co., 50 Congress
tinues to dawdle well above Chronicle. They are presented as Street, members of the New York
the

W Wile An LfiWIS NflW

With Lloyd D. Fernald

:

17

Wrigley ion
A rather pronounced ties Co has been formed with ofSPRINGFIELD Mass-Howard
With BlVtH &
also something of a casu- pickup in daily new lows is fices at 3104 South Main Street
affiliated with
portt anu ni
w wumn
oonocinnoiiv
midoariincr cHna+irm- rrtnct to engage in a securities business.
iNen ls now atiiiiatea with
PORTLAND, Ore. —W. Wilson
occasionally.
a misieaaing Situation, most Ralph D Block is a principal of Lloyd D. Fernald & Co., Inc., 1387 Lewis has become associated with
*
*
*
OI- the reporting services the firm.
Main Street, members of the Bos- Blyth & Co., Inc., Pacific Build-

rather
was

.

East- showing

Procter & Gamble and
man

..

for 1954

hydro¬
high of

128,516 barrels daily. Arrange¬
ments

were

made to buy assets

of American

Republics Corp.

(include valuable producing
and

undeveloped properties).




New

highs

established in the volume of crude oil
products transported by pipe line—an

were

refined

and

increase of about 14% over 1953.

and products

systems—wholly

f

'; -

or

Map shows crude

-

operations generally were

upgrading product yield and

improving quality.
substantially the

partly owned.

?*v>,*'

Plant additions and

directed toward

New facilities improved
of Sinclair gasolines.

power

:
STATEMENT OF CONSOLIDATED

INCOME
1953

1954

Gross

Operating Income

Costs and

$1,021,461,419

$935,465,453

914,362,559

Expenses

841,743,548

107,098,860

$ 93,721,905

Other Income

6,953,825

7,010,285

Other Deductions

10,679.429

10.671,184

103,373,256

$ 90,061,006

28,750,000

22,000,000

74,623,256

$ 68,061,006

Operating Income

$

$
Provision for U. s.

Federal Taxes

on

Income

$

Net Income

Net Income per

income
passed, for the first time, the billion dollar mark,
amounting to $1,021,461,419 or an increase of 9.2 per

The

cent

Company's consolidated gross operating

over

1953—a result of

"balanced progress."

Net

income

share

increased

$5.53

$6.04

about

10

per

cent

compared with 1953—excluding a profit

of

$16,957,089 derived from the sale of Sinclair's
stock interest in Pioneer Natural Gas Company.

SINCLAIR
Details of the

Company's financial

condition and the operations of
are

subsidiaries

A Great Name

included in the 1954 Annual Report.

Copies

are

available

SINCLAIR

upon

OIL

Oil

request.

CORPORATION

•

600

FIFTH

AVENUE • NEW YORK 20, N. Y.

18

The Commercial and Financial Chronicle

(1382)

and

A Boom in

Housing

in

as

could

doubt

no

the public

be

improved

that

interest.

Reasons:

with

Well

(1) The reduction in or elimina¬

the Stock Maiket

as

tion

deter

City, Utah

Former Chairman, Federal Reserve System

activity,

boom stock market and

a

paradoxical

inflationary developments and advises against

sees no

tightening of credit. Urges
and GI loans with

need

restrictive appraisals of FHA

down payment

a

maturity limit of 25

more

of 5% and

little,

for further

control

would

of

adverse effects

the

on

real

real

investor

turbed

not

need

be

dis¬

by

increasing the holding
period, but would be encouraged
by the reduction and eventual
elimination

speculator
the

of

would

measure.

be

would

government
any, revenue

Only the
deterred by

lose

by such

the

tax

the

bull

tax.

Nor do I believe the

stock

credit.

the

availability

a

if

much,

change in

law, and it would assure

of

the

de¬

most

securities

at

Anti-Deflation

econ¬

in general.
(4) As to the suggested change
in the capital gains tax law, the'

greatly
the

if any,

sirable

prices.

omy

the

(3) There cannot be a perpetual
market, and to the extent

Favors increasing margin require¬
to at least 75%.

Because of my long experience
the Federal Reserve Board

but

market

mortgage

a

years.

ments

for

(2) The rapid increase in the
price of stocks generally during
the
past year, supported by a
growth in brokers' loans of more
than
$800,000,000
indicates the

excessive construction

an

credit

investors.

Mr. Eccles, though asserting we have today the
situation of

of

use

of buying stock
speculation.
It

reduces

Chairman of the Board, First Security Corporation,
Lake

the

purpose

By MARRIN.ER S. ECCLES*
Salt

of

permitted^to de¬

unchecked, just so much
painful the decline will be,

excesses are

velop
more

Thursday, March 24, 1955

...

realistic

Offsets

The

housing program referred
and
possibly
the
restricted

to

credit

stocks

on

tionary

in

compensated
should

tensive

and

by

for

The

grams.

these

would

effect
most
be

overdue.

been

proposed.

should

defla¬

must

other

be

pro¬

important
large and

a

highway

long

be

development
has already

One

This

ultimately

of
ex¬

program

be

paid

ducing the

money supply as these
are
largely purchased by
savings and investment mar¬

with

bonds

and

the

my present varied activities
private financial and business

in

affairs I
continued

o

m

and

as

of

have

oortant
ence

trend

Housing

influ¬

in

economic

and

vice

this

statement

the

developments

My

versa.

is

to

intention

briefest

of the

summary
situation as I

nomic
some

suggestions

in

present only

on

eco¬

it

and

see

dealing with

I think is is

agreed that the ob¬
government is to
bring about and maintain maxi¬
mum
production
and
employ¬
ment

of

our

the

on

basis

economic

of

that

the

depressions of the
under

occur

By

not

appraisals

FHA

and

GI

Require not less than 5%
payment,
increasing
this
amount if necessary, and not more
than a 25-year maturity on all
(2)

down

GI

and

loans.

FHA

If this cannot

legislation

use

monetary

fiscal

and

compensatory
avoid the

should

policy

manner

so

in
as

255 and

earnings for

The
elimination
of
the
open-end mortgage on the FHA

after all

Reasons:

\ £

ence

(1)', Housing starts in 1954
1,200,000.
Estimated
starts
1955

Home

curred in

mortgage

1954

We have

6ituation of

today the paradoxical
a booming stock mar¬

ket and

This

excessive construction

an

is

by

commercial

unsound

under

GENERATION
Total output was 10,934 million kwh,

During the
shares of

at

cars

year

a

the

rate

of

which

8

million

cannot

be

First and
Due

1979

maintained. While in the economy
as

whole

a

I

see

developments;
the cost of
consumer

less than,
sale

There

of

all

commodities

practically
also

are

will

be

more

than

unemployed, and

1955

the

three

unused

national

product

for

will

labor

forces and increased pro¬
ductive facilities, as well as
pro¬
ductivity, the national product
should exceed that of 1953
by $15
to $20 billion without

creating in-?

flationary conditions.
to,

it

would

income

of

group.

approaching with serious

I

brokers

fact,

rise,

con¬

the margin
should ultimately

to

they

reduced

for

the

be

a

re¬

banks

compared with

$63,61 0,524 in 1953. The first unit

an

The

$.50

increase

was

newly authorized rates

completed

at El

record of 77,054 meters were

new

1954

in

the previous record of 74,695

com¬

customer

Segundo

new

campaign

compared with
in 1953. An in¬

launched

was

use

on

January

of electricity in all

classifications with emphasis on sales to

domestic customers.

September 1956,

and the first 1 60,000 kw unit of the

ex¬

CUSTOMER RELATIONS

19, 1955 to increase the

is scheduled for completion in

are

stock earnings about

common

tensive sales

pletion in July 1955.The second unit

a

share annually.

a

at Redondo

Segundo Steam Station consisting

100%.

As

should

a

for

v

,

•

Alamitos

completion in November 1956.
PRESIDENT

be

matter

never

have

in

February, 1953
restrictive monetary and
management
policy
was

CONDENSED

CONSOLIDATED
December

and the Treasury. It looks
though the stock market was
being favored.

serve

serious

largely held by
into long-term

securities. This action has the ef¬
fect of being

deflationary by

'Statement by Mr. Eccles
Senate Banking and
Currency

before

(3)

capital

ASSETS

BALANCE

SHEET

31, 1954
LIABILITIES

%

gains tax by a tax start¬
20% after two years and
graduated downwards

the

ELECTRIC PLANT

to

the

CURRENT ASSETS
DEFERRED

59,038,717

CHARGES

BONDED

INDEBTEDNESS

ASSETS

....

.

.

.

.

$368,616,809

.

.

.

.

328,000,000

.

.

.

.

144,842,987

CURRENT LIABILITIES

3,206,018

CAPITAL STOCK EXPENSE
TOTAL

9,162,564

STATED CAPITAL AND SURPLUS

DEPRECIATION RESERVE

2,978,340

OTHER

RESERVES
TOTAL

$908,654,547

AND

52,309,938

LIABILITIES

LIABILITIES

.

.

14,884,613

$908,654,547

according
length of holding until a

tax-free
reached.

status

is

ultimately

(4)
be

$834,268,908

INVESTMENTS AND OTHER ASSETS

ing at

re-

Committee,

Washington, D. C., March 10, 1955.




$834,268,908 in

being pursued by the Federal Re¬

Federal

that the Treasury in its debt man¬
agement program should refund
its maturing debt
commercial

1954

of

to

base.

pected to increase

re¬

Congress should consider
Reserve
passing legislation to increase the
to
adopt
a
further
restrictive
holding period from six months
monetary and credit policy. Like¬ to
one
year, and replace the 25%
wise, I do not feel at this time
mistake

$65,054,461

a

debt

rate

Electric plant investment increased

by the

provide

Steam Station also under construction is scheduled

(2) If the value of stocks
quirements

September

authorized

depreciated book-cost

on a

struction and the first unit is scheduled for

to at least 75%.

when

5.9% rate of return

of two 160,000 kw generating units is under con¬

by banks and

to

were

connected

(1)
Federal
Reserve
should
promptly increase the margin
requirements on loans on securi¬
made

1954

A

;

been

13,

Valley Reservoir in the High Sierra

Stock Market

of

New rate levels effective

California Public Utilities Commission to

in 1954. The El

increased

RATES

money

capacity and the 125,000 acre-feet Vermilion

Program:

tinues

new

eco¬

economy.

ties

$30,005,970. Approxi¬

No. 2 Steam Station with 160,000 kw generating

whole

increase of 5.9%

an

1953.

is

saturation

1953. System peak

over

1,998,200 kw

as

believe, under conditions

ferred

low

point

nomic consequences to the

is

approximate that
of
1953, whereas with the increased

I

fast

a

over

was

required in 1955 and 1956.

danger of the present

and

believe

unchanged.

capacity in almost every field of
production. Furthermore, the in¬
dex of industrial
production at
132 in February, 1955 is 5
points
below the high of 1953. It is esti¬
mated

middle

demand

present

is largely sustained by a
growth
of
debt
of
the

The whole¬

year ago.

price

million

on

living as shown by the
price index is slightly

a

likewise

inflationary
the contrary,

no

it

for

mately $100,000,000 of additional

banks.

6.4%

up

sold for

was

PLANT EXPANSION

The basic

rapid

issue of 600,000

stock

Refunding Mortgage Bonds,

sold

were

conditions.

omy

year an

common

$23,670,000 and $30,000,000 face

activity, especially in the field of housing boom is that while it is
housing, and an automobile pro¬ the greatest support to the econ¬
duction

stock

common

FINANCING

in¬

debt

these evils.
(3) Growth of mortgage debt
cycle cannot exceeding
available
investment
be abolished entirely, the control
funds,
therefore
Increasing
of cyclical fluctuations is much amounts are financed
directly or

indirectly

share of

dividends, compared with $2.56 in 1953.

for

business

better understood.

per

$26,61 8,-

$21,276,1 1 8,

were

$9,300,000,000.

was

was

an

9.6%

or

charges, including preferred and prefer¬

are

(2)

$1 55,095,565,

was

$13,535,810

common were

equivalent to $2.95

and GI loans.

(3)

of

excesses

the

of

1 953. Net income

over

enacted.

a

to

revenue

increase

1,300,000 -1,400,000 —
this is practically double the esti¬
by hard experience
mated family formation.
intelligently the tools of
government

now

While

Gross

regulation, the needed
should
be
promptly

and

peacetime conditions.

the
have learned
to

booms

past need

all

of

case

loans.

stability. And there is increasing
evidence

the

be done by

the problems.

jective

More restrictive

(1)

Marriner S. Eccles

the

of

a

Program:

im-

on

of

outline

the

lows:

may

an

securities.

on

I would suggest under
present conditions and some of
the reasons therefor, are as fol¬

stock

market

however, I
elements of

economy

program

I

behavior

the

loans

briefly,

Very

recognize that
the

bank

and

a

v/hole. In this
connection

the

terms; as well as the rising stock
prices supported by brokers' loans

econ-

y

are

from
overbuilding of homes made-pos¬
sible by excessive easy mortgage

matters

the

to

there

real danger, to

monetary

fiscal

time,

same

recognize

relationship
credit

the

At

my

interest in the
of

ket.

have

Consideration should also
given to legislation
dealing

with the over-the-counter
market
which is now

entirely unregulated

SOUTHERN
EDISON

BUILDING

CALIFORNIA
•

601

WEST

FIFTH

STREET

EDISON
•

LOS

for

largely by those using the high¬
ways
through toll roads where
financially feasible, increased

COMPANY

ANGELES

53,

CALIFORNIA

Volume

181

gasoline

Number 5414

taxes

charges

all

on

hicles.
would

bring

relief

The Commercial and Financial Chronicle

.

(1383)

ve¬

in

the

to

taxes

great

of consumers,

mass

would produce
purchasing power

increased

an

.

commerical

reduction

Some

.

increased

and

and would lend to lessen the need

for

and

consumer

mortgage

credit.

The

proposed

been criticized

$20

tax

cusation

I

do

move.

of this

Wish

not

has

cut

political

as a

As to the justification

to

ac¬

pass

judgment.

But as an intelligent
step under present conditions de¬

signed

to

create

buying

more

power

to help absorb the surplus

goods

and

labor,

believe

I

is

it

economically sound. The tempo¬
loss in revenue will be more

rary

than
has
A

made

up

when the economy

up

taken

the

Government

slack.

present

cash

deficit

is

dangerous only when it is infla¬
tionary
in
eifect.
A
balanced

budget

can

under

conditions

be brought about only

employment
the

national
revenues

and

the

will

cash

would

duction,

terms

were

gested

and

applied
there

is

tute

of

further
the

re¬

con¬

as

curbs

market.

to

such

increase

tax

a

in

individ¬

on

budget¬

grounds, then, rather than not

ary

such

pass

tax it would be

a

largest aluminum alloy die forging
made for the

produced at
aluminum

sounder

forging and extrusion plant at

operation.

COMPLETED AN ENTIRELY
MODERN TUBE MILL
The increased

plant

new

profit possibilities of the

have

already

been

demon¬
••VjvAPW'''*

strated, and real benefits should start to

eco¬

close

to

was

government-leased

Adrian, Michigan, in its first 9 months of

be

nomically

airplane industry

new

our

If

proposed substi¬

exemptions,

The

sug¬

credit

stock

the

or

$100

tax

ual

on

PRODUCED A RECORD-SIZED
ALUMINUM DIE FORGING

ever

mortgage

restricted

objection

reduction

tax

a

only

housing

to

increase

disappear.

such

however,

the

As

increases,

also

deficit

favor

dition

maximum

production.

product

tax

I

of

and

fully realized this

year.

up
*

of the tax

some

loopholes and

re¬

peal the dividend credit to make
for

up

resulting loss in

any

rev¬

enue.

In
out

COOKING UTENSILS
closing I should like to point

that

lation
cal

a

as

result

a

of

the

popu¬

growth and the technologi¬

development

place,
•our

will

we

total

to

taking
increase

is

employment

^maintained.

This

.•similar

ply

well

will

growth in

as

is

that

have

production by 3% to 4%
if

year

be

require

The

use.

■condition

in

functional

a

largely depends

upon

credit

and

the

re-

mone¬

of

give"—were

finest

widely

These beautiful
you

be

now

or

immediately

acclaimed by buyers. A new plant

production,

own

can

and

for their

being constructed, will

ready for operation by'the second half

of 1955.

*

j

a

manner

policy

utensils—"The

t

our money sup¬

its

as

to

.-sponsibility of bringing about this

tary

LAUNCHED THE NEW LINE OF
BRIDGEPORT COPPE&WARE

the

EARNED THE

SECOND| HIGHEST

PROFITS AFTER TAXES
IN ITS HISTORY
been

the

history

Profits

highest in

were

might have

Bridgeportt,Brass

management
gram

the

debt

taxation

Reserve

it not for the large starting-up

of the Adrian aluminum plant,
tube\ mill

pro¬

and

and

expenses

the

Federal

new

and

the

Bridgeport

Copperware line.

of the Treasury.

World's

Duncan

Of B. J. Van
Duncan

■elected

a

C.

Gray

Ingen
been

of

B.

J.

Co. Inc., 57 William

.Street, New York City, it has been
need.

a n n o u

Mr.

Gray has

been

THE 5™ CONSECUTIVE
On

an

YEAR

increased number of shares,

dends of 50 cents per common

share

divi¬

FACTS

were

AT

paid for each of the first three quarters,
623^ cents

per

common

share for the

GLANCE

A
1954

Sales

•

••

•

••••*.

fourth quarter.
Profit before federal taxes

asso¬

with

ciated

the

forging

INCREASED DIVIDENDS FOR

has

Vice-President

Van Ingen &

largest aluminum

die

Gray V.-P.

income

•

•

•

•

1952

$142,659,000

$127,517,000

10,155,000

19,601,000

13,074,000

on

•

•

•

1953

$105,987,000

municipal
Federal

firm

bond

since

1 9 3

and

was

named

sistant

income taxes

excess

4,

(including
14,275,000

9,050,000

$

5,1Q5^00

$

5,326,000

$ 4,024,000

$

profits taxes)

2,569,000

$

2,032,000

5,050,000

....

Net income after taxes

....

as¬

an

Vice-

President

Distributed to shareholders

in

as

dividends

$

1,618,000

1952.
As

ber

a

of

Retained in the business

mem¬

the

Net income

.

2,536,000

I

$

.

5,105,000

2,406,000;

3,294,000

$

5,326,000

$

4,024,000

organization's

Syndicate DeDuncan

Earnings per common

partment, h e
has
special¬

c. Gray

Dividends per common

Total

bonds. B. J.
Inc. has been

ized in public revenue
Van

Ingen

&

Co.
the

identified" with
of $1

first

Turnpike

one,

issue,

of

stock

"

Copies

on

request

Based in

ing during

1954
year,

$ 4.21

$ 5.47

$ 4.23

$

$ 2.00

$

•

share

2.125

9,750

9,593

8,752

$31.31

$29.32

$28.26

......

share

.

shares outstanding at year-end, 1,211,932, in 1953 on average number of shares outstand¬
973,220 and in 1952 on number of shares outstanding, at year-end, 948,555.

on

Pennsylvania
which it origi¬

the

nated in 1938.
Mr. Gray is a member of the
Municipal Bond Club of New York
and
a
former secretary of
the

Municipal Forum of New York.




BRIDGEPORT

BRASS

BRIDGEPORT,

1701

shareholders-

Book value per common

billion of turnpike revenue

bonds, about one-third of the en¬
volume of such issues since
the

common

management

tire

number

share*

COMPANY

CONNECTICUT

19

20

(1384)

The Commercial and Financial Chronicle

however, that

mous,

A Broker's View of

volume

tinue

for

time.

The Stock Market Level

gives views
factors

economic

which

contributing toward the rise, chief

confidence in

is

future

our

to

they

operate

at

90

exchanges
American
many

open

are

of

our

vital cog in our

a

way

and public stock

Furthermore,

among

of life, I'm afraid
citizens completely

goods output.

business

business¬

many

the

remembered

men

pattern

of

following the first World

and

Ward

why

the stock market has risen rather

to

sharply

wondered

if
history
Montgomery
not the only corporation

recent

Committee

misunderstand

answer

has

now

Division.

months.

prepared by

file

on

a

The

our

future

thinking

the

contains

plans

basis.

This

flected

in

on

naturally

was

the

of

part

stock

re¬

market

and

fairly good rise in stock

of Wall Street.

about 40 pages

Many

addition, I have the follow¬ prices into the middle of 1946, a
fairly sharp sell-off in the late
ing general comments to offer:

still

people

think the

security

prices.

Others

believe

a

ker

bro¬

gains only

when

cus¬

a

tomer loses.

C

o m

will

have

attention

our

and

perform

of

the

Winthrop H. Smitn

can

e

the

public, I
again repeat it
valuable service to

a

people—they need
information

about

more

facts

the finan¬

cial business.

*From
fore

the

the

of

a

S.

a

to

back

look

of the war and

see

to

the

movements

the

end

war

will recall that
in

volume

during the

Committee

Banking
and
Currency,
C., March 9, 1955.

on

Washington,

in

desira¬

common

tended

to

things

have

turned

in

well

out,

a

selected

-

at almost any time in that
period would have proved to be a

well-timed investment.

most

keep

the end of the
men

profits

down.

amounted

At

taxes

most business¬

war

optimistic

were

able
was

consumers

obvious

goods

that

a

where

on

Corporate

at

$22.1

was

advanced

and

to

A peak
reached

billion

annual

an

after

in
in

profits

have

basis

and

ranged

between $17 and $20 billion since
that time.

it

tremendous

backlog of demand had

feeling

billion

profits-was

Dividend
The

$13.4

billion, in 1948.

1950

was

to

1946

in

$20.3

regarding

corporate

This

is

that

in

fidence
and

accumu¬

payments which

had

been only $3.8 billion in 1939 were
$5.8 billion in 1946 and have in-

not unani¬

the

in

we

natural

to

♦

It is

the

in

the

were

in

due

which

stock

part
who

in order to

For

gradual

a

of

Asphalt & Asbestos

On

example, in New York State,

April

15, 1952, savings banks
year

$2 billion was in¬
vested by pension funds of which
some

$400

million

subsidiary. Hurricanes Carol and Edna
Tilo

trustees

of college

have

placed

centage

of

were

increased

Harvard

Glasfloss Division to the
Glass

resulted in

a

gain of $1,085,318,

materials and
a

in

a

individuals

as

investment opportuni¬
We

stocks

some

abhor

are

pur¬

may

to

speculation

in

so-called

stocks.

stock

prices between the
the

and

almost

advance
date.

been
and

compared to
f

January

as

great

from

We

1949

1953

as

the extent

September

have

noted

1953

in

our

reawakening of confidence

a

as

I

have

confidence

he

if

is

mentioned
that

before,
important

all

moves

Liabilities: 3.58:1, based

a

person

who

/

;

of the Annual Report,
the

Company,

obtained upon request.

may

also

.

sound

values

.

like

Federal Reserve

by $379,000.

which includes the financial state¬
ments of

.

to

note

that

the economy was in a strong up¬
trend in the fall of 1952, with the

Long Term Debt

A copy

would

I

respectively.

Reduced

that

Whereas, the
same
person with money but no
confidence might not invest.

on

$9,479,702 and $2,645,260

believes

available.

are

be

Board's

index of

production rising sharply. Credit
strings which had been tightened
in

1951

were

untied in the spring

of 1952 as many areas of the econ¬
omy

became adjusted to the sharp

changes in demand following the
early 1951 rise in prices. The end
of the Korean War and

that

inflationary

panded

new

taken

steps

by

anti-

the

investors as to a possi¬
change in the economic clim¬

ate and the decline

in the market

in 1953 through the spring

probably be

causes.

the

that the

from present rates
rate

free

In other

be

a

at

of

growth

can

private

enterprise

words, there

appears to

this

for

greater feeling of confidence
time than there has been

long time.

a

I

would

be

surprised

if

the

members of this committee would
not acknolwedge that

they

feel

about the strength of

secure

our
economy and its ability to
ward off recurrent recessions than

they

were

war

years.

in the immediate post¬

Sudden

rises

and

sudden

falls

not unusual in the stock

are

ket

but

believe

we

should

that

know

doing and that
be financially

mar¬

in¬

an

what

he

is

speculator should

a

able

to

assume

a

risk if that is what he wants to do.
So far I have tried to cover some
of the
background factors con¬
cerning the rise in equity prices.
I shall now try to
amplify some

of the statements
nection

with

made in

we

the

con¬

committee's

questionnaire

concerning specifi¬
cally the factors causing the mar¬
ket

to

rise

beginning

in the fall

1953.

of

It is
of

quite true that

accepted

stocks
of

traced

Confidence,

of 1954
to those

however, in

attractive

were

the basis

on

of

measures

1953 when the 30

in

value,
the

fall

stocks which

make up the Dow-Jones Industrial

Averages

were selling at 9.3 times
earnings and provided a yield of

6.14%.

price

It is true that the current

earnings ratio

and

yield is

less attractive.

However, such
the valuation of

approach

an

common

to

stocks is

obviously over-simplified.
I can¬
all the factors that go

not discuss

into

the

but

it

valuation
be

must

security
reflecting

the

the future

as

of

a

security,

remembered

prices

are

that

continuously

past, present and
it appears to many

different investors and

all at the

time. The reasons for buying
and selling are compounded out of
same

many

factors selected by different

in

people
each

of

varying amounts from

these

time

segments.

Many stocks of well run com¬
panies are still obtainable at yields
of

5%

somewhat

or

better

and

stocks are still available at
price earnings ratio of 10 times

many
a
or

less.

It should also be noted that

kets in

many

began to
market
for

this

did
we

in

1953.

believe,

war

mar¬

European countries

move up even

important

can

con¬

system.

minds of

STRATFORD, CONNECTICUT

and

believe

place, largely
automatically, through the work¬
ings of our strengthened and ex¬

any

ble

cen¬

be expected to take

Administration raised fears in the

Americas Largest Roofers

to

reason

of 50%

crease

and

high

that there appears to have

factor which

Current Assets to Current

♦

booming industry.

re¬

tips and rumors and
though some of these tips or

to

♦ Ratio

methods,

products—

vital program




on new

that

still available.

of

or

earnings of $669,729. Tilo is

continuing research

be

later by individuals.

United

output
in
1965
$535 billion, an in¬

reach

vestor

has money to invest to take action

$2.35 per share. This is in addition to
net

to

every

was

31%.

was

the

of

on

answer

$10,132,846 in 1953, an
increase of $990,700.

Pittsburgh Plate

Company last March. This

stocks

figure

bound

was

sound

low

with

exuded

national

should

Uni¬

It might be noted that the rise

Total Assets
as

the

in

has 55%

now

common

1946

believe

posed

Dividends

$11,123,546

per¬

investments

stocks.

sooner

are

was

considerably by the sale of its

funds

materialize, we feel
very strongly that the individual
is better off if he ignores them.
My firm is on record as being op¬

products. Tilo's working capital and

the book value of its stock

mana¬

increasing

an

their

in

and

endowment

portfolio in

penny

$.50 per share, compared
$.40 per share in 1953.

♦

com¬

growth

is

more

Corporate
gers

in

also created unusual demands for

in

was

stocks.

mon

rumors

Share

Re¬

dated

was

certainly

during the past half
has been phenomenal

total

estimated

an

$.96 in 1953.

♦

in¬

in New York State were
permitted
to buy common stocks. Last

even

$1.45, increased from

increased sales efforts of its branches and

change

institutional

insurance
companies
were
permitted by law to buy common
stocks commencing March 31,1951.

the fact that

per

which

This report also stated

ad¬
was

life

chased

of the Atlantic

the

This

increase their income.

$11,355,681 in 1953.

Earnings

Economic

that economic growth should
tinue at a rapid rate.

stocks

began
to
increase
their purchases of common stocks

ties

♦ Net

led

prices.

part to

the

chip

well
as j institutional
investors
should investigate before they in¬
vest, and if they do so we believe

$226,925 from 1953.

economic

States

stock

common

blue

ones

in

vance

that

up

the

on

Decade,"
27, 1954,

Oct.

interesting to observe that

so-called

We

$669,729 in 1954;

Next

there

investors

Earnings

ample, the publication of the Joint
Committee

prices.

Sales

♦ Net

ex¬

tury

reflected

$1 1,835,484 compared to

Report to

the

For

be

flected

of December 31,1954.

stress

port "Potential Economic Growth
of the United States
During the

the

This confidence in the stock mar¬
ket on
the part of institutional

Highlights

also

our economy.

confidence when it stated that the

only 41% and in 1937 it

Financial

opti¬

more

growth in our economy and the
increased resilience and more sta¬
ble nature of the economy should

whereas

as

that

us

even

1954

corporate

usual.

sources

strength of

wider participation in the
of common stocks. It

a

of

Reports and releases from gov¬
ernment

con¬

to encour¬

can

were

than

mistic

America

of

statements

executives

he

ownership

of its

Tilo's improved sales are due to the

year-end

the years have been do¬

over

age

Lynch have

future

ing everything

common

Stockholders

public confidence while the

buying a stock
though its current earnings
and dividends are good.
We at Merrill

surveys

Board give impressive evidence of

matter

future,

intention

consumer

sponsored by the Federal Reserve

investor

an

the

versity, for example,

Tilo 1954

The

advance

the

Unless

confidence

vestors

manufacturing
corporations, although price con¬ profits which in 1939 had been
trols
and
excess
$5
billion
after
taxes,
profits
taxes only

lated.

D.

of the

stocks

an

for

not

they did and I think
to

answer

on

commitment

military demand re¬
unprecedented sales

years

sulted

cons

of investing

As

particularly
true among manufacturers of dur¬

by Mr. Smith be¬

Senate

the

prices.
asked
why

be

did

of confidence.

three

narrow

stocks.

pened to business and the securi¬
You

about

price
investors weighed

as

and

pros

bility

what has hap¬

then

of relatively

years

bearing on the recent
rise in stock prices, I think it is

helpful

and

summer

examining the factors which

business.

this

of

purposes

statement

U.

a

the prospect for a good volume of

Why Did the Stock Market Rise?
One

saw

we

of text and charts.

ties market since that time.

i 11

m

In

have had

the

Because

than

long-term

growth and in the stability of the
economy seems to have increased.

stock

on

well

prices

In

Exchanges
set

might

sooner

seems

businessmen

Research

business

conservative

a

mixed

long

answer

That

was

make its

on

in

the

functions

determine

to

It
stock

the most im¬

are

portant influences

its

not greatly impaired.
confidence in our future
was

This

will hesitate about

War

is

its and dividends

continue

to

omy

growth

even

growth and the stability

Committee

ties

$9.8 billion annually.
I cite these figures because most
analysts agree that corporate prof¬

has

would repeat itself.
our

the basic values available in
equi¬
and the ability of the econ¬

steadily since that

present rate of about

durable consumers

of the economy.
While

the

prospect for large automobile and

the rise of stock market values. Lists

on

doubted

frankly

100% of capacity even with the

or

public's need for more facts and information
financial business, prominent brokerage house

had

Many steel manu¬

continue

would

which

creased almost
time to

important role in

an

effort.

war

facturers

In stressing the
the

material

played such

Fenner & Beane

Members New York Stock Exchange

executive

period of
particu¬

was

heavy equipment, steel

other

the

about

of

turers

and

Managing Partner
Merrill Lynch, Pierce,

feeling

con¬

larly strong among the manufac¬

WINTIIROP II. SMITH*

By

would

extended

an

This

substantial

a

business

of

Thursday, March 24, 1955

...

was

before

The
was

our

reason

that

no

in progress at

place in the world and

we

be¬

lieve that peaceful conditions and
the prospects for continued peace

had

a

favorable

effect

on

foreign

security markets.
The

fact

that

excess

profits

Number 5414

Volume 181

taxes

allowed

were

1954

while

10%

in

cut

able

income

personal

permitted,

was

Joins Bache & Co.

tax

particularly burdensome to
companies in the post-Korea
period as our study of EPT at that

DETROIT,
of

ability

an

recessions.

severe

Smith,

Penobscot

DENVER,
Snook

is

Hamilton

Colo.

Robert

—

connected

now

with

Hornblower

&

Weeks,

Mich.

—

James

A.

Hague,

Noble

Building,

&

Co.,

Exchanges.

CHICAGO,

111.

G.

Robert

—

SAN

West
name

of The R. Wells

The First Boston
South La

FRANCISCO,

Corporation, 231

Russ

Calif.—

Stock

Company.

Milton

—

securities

business from offices at 427 Flatbush Avenue Extension under the

Youngberg,
members" of the

Building,
Francisco

San

Stout

BROOKLYN, N. Y.
Sole is engaging in a

to the staff of Stone &

Salle Street.

at

Forms Milton Sole Co.

Youngberg Adds

Barry M. Newman has been added

Keeley has become affiliated with

securities

a

offices

40

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

conducting
from

State Street under the firm

134 South

La Salle Street.

Stone &

is

business

bey has been added to the staff of

Corpora¬

Management

WELLSVILLE, N. Y.—R. Wells
Stout

CHICAGO, 111.—Robert F. Bar-

R.

First Boston Adds

members of
the New York and Detroit Stock

necessary

has given the investor added con¬

fidence in

with Bache & Co.,

Hague has been added to the staff

another factor which

be

G.

(Special to The Financial Chronicle)

shows.,
ability of the Federal Re¬
serve
Board
to
provide
easy
money
when necessary and to
to

James

tion, 445 Grant Street.

The

seems

—

With Smith, Hague, Noble?

time

when

now

Mich.

Penobscot Building.

were

credit

(Special to The Financial Chronicle)

Sparks is

profits taxes

R. Wells Stout Forms Co.

Joins Hornblower Weeks

(Special to The Financial Chronicle)

DETROIT,

some

restrict

With Hamilton Managem't

(Special to The Financial Chronicle)

a

another favor¬

was

Excess

factor.

time

same

(1385) ,21

The Commercial and Financial Chronicle

in

expire

to

the

at

...

firm

Exchange.

Milton

of

name

Sole

Com¬

pany.

prevent
relief

to

The mild

from double taxation of dividends

in the 1954 Law also had

ing

bear¬

a

the rise in prices.
great many of our accounts
us
that they might sell but

on

A

tell

workers

for the fact that they would have
to

such

pay

tax.

large capital gains

a

This

has

tended

the

rise,

since

tuate

to

it

a

belated

have

to

seems

engaged

di¬

nature

dollar

actually

changed

charge-offs

income in

addition

the investor

ability

the

of

Board

to

the

to

seems

through

its

people

confidence

our

Reserve

decline in business.

and

so

It

born in

was

and

workshops. Its first word
was

a

off

of your

as

t

electronics,
makes it seem not too surprising
that security prices have advanced.

There

J. 0. Jordan Joins

But it

J. Barth & Go.

body it

Stock Exchanges.

laughing. It

was

the steel
ways

kept growing, learning by

over

through

industry

every¬

formed

the

beautiful paint

is steel

industrial

toward

strides

.

.

.

job of

America!s'2

great bargain metal.

enjoyment of

What about the future?

widening horizons, lengthening

life,

was

formerly with Hill Richards & Co.

our

sheets and,

by mass-production methods.

Under the

shortening dis¬

years,

able to devise

was

wider

sheets that could be readily

cowpaths and down

tances, broadening

make im¬

to

hoods and fenders of to¬

of rolling

moreover,

it changed.

came upon,

...

for instance, exist because

cars,

every new car

Francisco

Mr. Jordan

much

The tops,

day's

looking.

It rattled

ciated -.with J. Barth & Co., 404
Montgomery Street, members of
San

preceded by

provements possible.

genius.

experience. And everything and

♦

SAN FRANCISCO, Cal.—James
O. Jordan, III, has become asso¬

the New-'York and

was

awkward

-

improvements in

needed

of steel

kinds

Century, the infant of Ameri¬
ca's inventive

cent

challenges to produce the particular

chugging, kicking and

came

lurching into the Twentieth

and

;

per

challenges to the steel industry

those based upon

(Special to The Financial Chronicle)

Today, 84

car's weight is steel.

Most of the many

our

fission

and steel be¬

.

the automobile have been

continually
rising standard of living, and the
development of entirely netfr in¬
nuclear

.

.

important material in

its manufacture.

revolution.

a

the most

came

Its first step

sputter.

touched

production could best be

achieved with steel

forth.

dustries such

and

recognized that safety

was

mass

ar¬

Obvi¬

of the factors which I have

population,

it

ment

dimly-lighted

thus far cited, plus the growth in
our

buy

clothing,

furnishings,

It looked to steel.

ously there are tremendous needs
highways, schools, slum clear¬
All

more

to

opportunities

Early in the automobile's develop¬

for

ance

today's

cases,

has given

products of their labor.

monetary

public wprks programs might
a

the

economy

policies,
there also seems to be a feeling
(whether correct or not only time
will
tell)
that the
government
through
large
quickly-activated
rest

paid 12 times

The luxuries of

in most

more

homes,

of living

way

place in the

Federal

stabilize

to

are

necessities. More pay

recent years.

some

of motor vehicles.

much today as they were at

the 1900's are,

our

net

reported

manufacture, sale,

or use

start of the motor age.

reported
companies. For

exceeded

the

in

American workers
as

for depreciation and related items

In

baby

been

of

earnings of many
example, U. S. Steel

every

companies is primarily

maintenance,

recognition of the ultra

conservative

highway

a

eccen-

has

otherwise would be available.
also

employed in

six American

minished the supply of stock that
There

is

transport industry—one out of

greatness.

automobile show today, you

At any
see

W.

George PoHs With
A. C.

Allyn & Co.

In the

(Special to The Financial Chronicle)

CHICAGO, 111.—W. George Potts

of all

has become associated with A. C.1

Allyn &

zuela

Co.,

Mr.

office

Fahnestock

of

&

•

The

and

(Special to The Financial Chronicle)

SAN

JOSE, Calif.

—

Charles A.

Tripp

have become associated with
Jose

Investment

Park

Avenue.

Co.,

Mr.

La

San

Inc.,

'

1

automobile

demanding

go

created
way

move

all kinds of household

than 50

whatever

But

steel will

come up

In National Steel, we are

proud of

pose,

with the answer.

move

long and close association with

our

products from the farms to the cities,
-to

of steel.

problem they

suburbs,
to

more

These models of the future

longer and lower and much more

are

almost 30 times.

new

a

building exciting

are

men

concepts of that first automobile

years ago.

742,000

paved roads—enough to

brought

the motor

industry

too, of

things

position

from the factories to the homes.

our

.

.

and proud,

.

as a

leading

sup¬

plier of automotive steels. It will be
It created

Franboise

foritierly with Walston & Co.
Mr.
Tripp was Saratoga, Cali¬
fornia, representative for Paul C.
Rudolph & Company.
'

are

men

that startled America

476

was

\

today, there

around the equator
1

La Franboise and Richard C.

early 1900's the total length

miles of

Co.

Two With San Jose Inv.

These
new

paved roads in the United States

York. Now,

Potts

at work.

pulled

villages together.

would not reach from Boston to New

122 South La Salle
was
formerly
co-Manager of the Caracas, Vene¬
Street.

cities and

signs that there

still restless

revolution!

a

The automobile reached out and
our

the unmistakable

are

It started

From

the few

new

men

jobs.

goal, through research

our

constant

and

who created the

cooperation with

to

automobile, the number employed in

our

customers,

produce still better steels for the

better and better automobiles

making them has risen to 930,000.

we are

>

One

out

of

every

seven

American

sure

the future will

bring.

E. F. Hutton Adds
(Special -to The Financial Chronicle)

,

LOS

ANGELES, Calif.—Joseph
C. Wilson III lias been added to
the staff of >E'. F. Hutton & Com¬
pany,

623 South Spring Street.

GRANT

Owning and

Company

Glucksman Opens Office
.Emanuel, M. Glucksman is

ducting

a

offices

at

con¬

City.




•

BUILDING

operating Creat

I

PITTSBURGH, PA.

Lakes

Steel

National Steel Products Co.

Furnace Corporation • Stran-Steel

securities business from
222 East 46th Street*

New York

CORPORATION

NATIONAL STEEL

•

Corporation

•

Weirton

Hannu Iron Ore Co.

Division

•

•

Steel

The Hanna

National Mines Corporation

(1386);

The Commercial and Financial Chronicle

domestic consumption requires un¬

Will the British Bank

duly

large

imports

of

food,

raw

materials and manufactures.

There

Rate Check Inflation?

is

evidence

no

slackening

of

News About Banks

any

of

activity in retail
In spite of the psycho¬

business.

CONSOLIDATIONS

the effects of the increase in the Bank of

on

England discount rate, Dr. Einzig holds the success of the
as an inflationary check is not very encouraging.
Says
of the trouble is not that British prices

abated,

international

but

competition,

requires unduly large imports.
not reduced

that

domestic

higher

far

as

by

Above

wages.

LONDON, Eng.

The

—

increase

of the Bank rate to 41/j»% has pro¬
duced
its
immediate
effect
on

sterling.

There

was

slight im¬

a

in

provement
the

official

rate,

and

official

un¬

rates

also improved,

though

to

extent

official

to

stocks.

form
of

in¬

tervention

in

It

is

in

to

this

high

check and

t-t

funds
_

Dr.

Paul

Einzig

to

rates

seeking

benefit

the
terest

e r m

by
in¬

high

has checked

hie

out¬

flow of gold. But increase of Lon¬
don's foreign short-term indebted¬
ness

trie

represents the

other

side

of

picture.

Another

effect

pro-

per

York

claim

miners,

As

is

soon

their

as

settled,

too,

:##§

of

impressions

encouraging. The

Mr.

a

curtailment of excessive imports.

creased
root

of

23%.

by
the

ternational

Evidently,

trouble

is

not

Lie
that

too high in in¬

competition,

but

that

agement

There

is

in

the

Bank

rate,

Those

fanatical

in

belief

Joseph D. 1-arreii

S.

K.

this
the

time

to

have

John

ignore is that amidst

seem to

of

full

high Bank rate

high

interest

employment

New

and

rates,

leoni

ac¬

alike, and the ris¬

consumers

But

it

that

seems

to

come

the

policy embarked

by

upon

only be

can

pur¬

conflict

with

the

the

overriding

maintenance

political

slight

leaves

Bank

rate

Ingot Capacity Operated

necessity
And

Tighter

Net Tons of Manufactured Products

Shipped

3,171,401

$41,100,266

Per Cent Net

Earnings of Net Sales

Cash Dividends

credit
the

5.76%

$6.50

$15,645,892

$15,640,891

3.00

3.00

even

merely

so

cost

the

check

a

Earnings Retained in the Business

Even

not

of

25,454,374

18,261,571

30,260,263

29,316,794

50,133,672

57,773,971

9.60

;

on

11.08

Per Share of Common Stock

would

further

a

capital
far

in¬

consumer

reduction.

affected

expansion

schemes

But

that

the

the

the

of

reason

business

could

businessmen.

would

For

slackening
of
through
high

any

be

regarded

as

current

portion (end of year)

75,281,460

143,238,613

Working Capital

64,094,018

134,103,527

Book Value Per Share of Common Stock

64.95

60.16

a

free

copy
us

of

our

complete 1954 Annual Reporf,

at the address below.

of

range

investment

There are, it is true, some dif¬
ficulties in the way of raising new

capital,
owing
to
change in the trend
These

the
on

at
•

\\ //

middletown. ohio

\y®
Sheffield steel division

•

armco drainages metal




the armco international
corporation

come

to

a

encouaging capital investment,
aiming at discouaging ex¬

while

cessive

consumer

as

demand.

But

capital expenditures

tinues there is
•

are

The official policy aims

substantial
products, inc.

the Stock

difficulties

insurmountable, however. New

long
mat

adverse

issuing activity has not come to a
complete standstill. Nor does the
standstill.

no

likelihood

decline

in

so

con¬

of

a

consumer

expenditure.
Those

duct

of

ap¬
were

and

responsible
monetary

&

Downey.

John
John

Broadway-56th

Street

They will continue their
assignments
at
these
locations.
the

meeting Coleman B.

same

McGovern, Jr.,
Assistant
to

an

He

is assigned
Administration at Head

Bond

Office.

appointed

was

Cashier.

Mr.

Farrell

joined

Na¬

tional City in 1929, began serving
at 28th Street Branch in 1947 and

appointed

was

1951.

its

Manager

Mr. Wareham became

ciated with the Bank in

appointed
Park

Assistant

Avenue

in

asso¬

1917,

was

Manager

Branch

in

at

J.
Reynolds,
Reynolds, Inc.

J.

Richard

J.

Control

of

Manager in 1931.

started

with

served

the

1927,

official assistant at

as

the

bank

John

Reynolds

J.

McGrath

substantial

Harvey

the

and
of

stock

and

Director

of

the

The

for the
tion

has

under

con¬

number of candidates

a

presidency of the institu¬

and

dent

board

new

sideration

is

the

election

of a presiwithin the next

expected

Assistant

1937-42

Manager

and

appointed Manager in 1950.
*

*.

*

C. Anderson

Miner
been

and

i

*

McLeod, Donald D.

James

Rowley

have

elected Assistant Vice-Pres¬

*

of

Chemical

announced

Baxter
Jackson

also

appointment of Eugene H.

Williamson

assistant Vice-Presi¬

16
by N.
Chairman.
Mr.

as

an

of

nounced

New

by

was

an¬

Horace

C.

Flanigan, President.

break

to

eggs.

too anxious to avoid

If they
breaking

to do without

Inflation cannot be

effectively

in

conditions

pevailing in Britain today unless
Government

is

prepared

to

envisage the unpopularity of some
degree of temporary unemploy¬
ment.

But

to

have

we

limited

tary

politician

no

admit
to

this

be

effect

full

would

public.

content

Mr.

with

Butler's

measures may

continued

in

First

of

Huntington,

Suffolk

Island,

So
the

mone¬

produce amidst

employment.

If

of

Babylon,

merged

The

036,360,
tional
tal

of

shares

of

of payments, the Government may
be impelled to take its courage in
both

hands

drastic

and

measures.

resort

But

to

more

conditions

was

Suffolk

Trust

At

bank

had

the

March 4, the
had

$1,432,350,
common

capi¬

a

effective

capital '

a

in

stock,

143,235$10 ;

par

each, surplus of $1,906,103 and
undivided profits of not less than

$725,000.

The

Babylon
known
the

the

as

First

of

Jan.

is

Office

National

the

the
now

of

Bank.

;

proposed conin our issue

j

appeared

27, page 530.
*

Harold
the

Bank

Babylon

Suffolk
to

office of

main

National

C.

*

*

Taylor, Treasurer of

Montclair

Savings

Bank,

will have to deteriorate consider¬

for

the

policy

con¬

must

Montclair, N. J., will join National

ably before it is likely to

Bank

to

take

this

political risk.

decide

'

to the

a

merger,

consolidated
stock

solidation

balance

&

the

Island
First

capital of $1,the Babylon Na¬

$300,000.

date of

Babylon
Company

latter prior

while

Bank

of

References

the

Long
the

of

Bank

Huntington,
the

Trust

consolidation had

that effect should prove to be in¬
correct

at

Y.

&

with

National.

title

and

National

N.

Bank

sufficient

to

*

charter

the

Long

realize the elementary truth that,
in order to cook omelette,, it is
necessary

*

the

National

dare

ap¬

and

Assistant

as

Trust
Under

York

today

Thomas
*

Manufacturers

Company,

the

the

Glass

announced

Secretaries.

Rechel
dent

are

Ex¬
was

March

on

Jackson,

*

Corn

pointment of Frank P.
The

<

week.

change Bank of New York, it

1937,

<

a

American Trust Company, and his
Mexican associates.

Street Branch

to

P.

of

from

idents

1931

1

formerly

predecessor of the Broadway-56th
from

-

by

John

Schwamm,

President

been

acquisition

block

L.

has

headed

group

a

by

1927

in

the

by

Mr. Warner

Bank

Cunningham.

acquired

•

and

President,

Jay Marc Schwa mm.

Mr.

Branch.

checked

Government wish it to

€j=D ARMCO STEEL CORPORATION

at

the omelqtte.

not

just write

Warner

Branch

the eggs they have

the

and

were

Barnch; Mr. Wareham

Avenue

purely temporary, and would not

Exchange.
If you would like

Park

at

affect

programs.

Long-Term Debt —less

Warner

not

business

a

Wareham

S.

S.

deeply rooted in

activity

rate

been

assumption

Government

minds

Reginald

28th Street

was

appre¬

Savings Bank.

Thompson H. Mitchell,
President, RCA Communications,
Inc.; President, Cuba Trans. Radio
Corp.

formerly Managers: Mr. Farrell at

has

have

possibly afford to have
now

rell,

MacDonald

pointed Vice-Presidents. All

pressure

expenditure

been

be

ciably by the high Bank rate. It
is true, in some borderline cases

Bank

Total Taxes

may

production.

result

inflationary

so

this
.

re¬

of

in the volume of

recession is

Capital Expenditures

no

conditions

postponed.

Per Share of Common Stock

be

can

resistance

the

in

crease

through

$7.86

Common Stock

on

its

employ¬
wages demands, owing to
the difficulty of financing the in¬

3,375,630

7.72%

Per Share of Common Stock

po¬

97.3%

$33,902,462

on

a

mitigate

to

there

this

high

its effect

demand, and not its

Net Earnings

in

the

to

ers

crease

90.8%

illusions

moment

produces

by

unemploy¬

duction of consumption without a
certain amount of unemployment.

But

Per Cent of Rated

created

of

consumption it will become

stiffen

4,704,773

storm

no

The

MacDonaiuS. Warner

At

increase

Maher, Vice-President,
A.

Admiral

a

hard

A.

York

McMorris, member,
Hodges, Reavis, McGrath, Panta-

more

them, should create un¬
employment, there would be a de¬
cline in the demand by producers

effect.

4,448,772

Hyland, Chairman of
Central
Instrument
Co.

Howard

Of course, if the

especially the credit cuts that

litical

Ingots Produced

and

J.

John

a

only produce

can

limited effect.

a

ment

Net Tons of

President,

President

berset Co.

a

all-curing

they

conditions

respect.

$588,919,900

Haynes,

Director, 571h Street East Corp.;
Director,
International
Hydro¬
electric
System; Director, Rub-

Board,

The

$532,045,314

Bickford,

Inc.

the

Net Sales

an¬

the

sued to the extent to which it does

1953

At the

Inc.

Justin

Wareham

effect of high interest rates. What

money

1954

Trust

American

Director,
Crookes
Laboratories,
Inc.; Director, Bristol Myers Co.;

about

favor

in

the Government

highlights of Armco Steel Corporation's Annual Report:

on

man¬

un¬

of full employment.

financial

made

was

the

Harold

The vicious

talk

some

requirements of

ore

of

Bickfords

possibility of yet another increase

not

Here

the

De¬

nual

This
will
cause,
in
further increase in indus¬

a

halt.

Previous Year

to

change in the

a

Company, New York.

price of coal will be

ing wages spiral would

over

assigned

Announcement

checked.

and

Net Profits up 21%

is
and

March 22 of

company

ARMCO

1947.

Rechel

Estate

elected:

in the

5V2%.

February figures, which have
just been issued, show an increase
of exports by 13% compared with
February, 1954, while imports in¬

was

Secre¬

Mortgage
partment of the bank.

in¬

spiral is expected to continue

are

The

May,

He

meeting of stockholders, the
following Board of Directors was

success

Butler's action depends on
the extent to which it will lead to

in

Assistant

turn,

the

Mr.

an

announced.

to

sphere becomes evi¬

June, 19c>0.

to

Real

wages

ther wages demands.

first

Manufactur¬

in

tary

in¬

substantial

a

with

merged

Trust

ers

are

substantial

a

before

But

which

has just been

annum,

Coal
receive

to

crease.

to

the inflationary

months

some

British prices are

short-run

New

22, Joseph D. Far-

of wages demands.

It is bound

take

In February,
1927, Mr. Rechel
joined the Pacific Trust Company

the
Na¬

have failed to

expansion of demand.

not very

o r

about

what

tend

of

of

The

advanced

the

to

sterling.
h

rates

Bank

March

on

of

trial costs, transport costs, and in
the cost of living, leading to fur¬

reverse

dent.

s

to

attributed

City

held

meeting

Directors

employers continues,

on

granted.

is

crease

interest

effect in this

of

be

it

to

of

of

tional

visible effect.
increase

regular

a

Board

a

million

a

The question is, to what extent

the

the market for

The

but

ascertain

can

been

the Bank rate.

transferable
influx

has

prices,

some

impossible
extent

There

At

restric¬

large increase to engineer¬
ing workers, involving some £80

as

result.

appearances.

mild

the

wave

Pressure
and

yet premature to
opinion about the extent

an

this

decline

this

due

was

some

duced by the Bank rate has been
the
liquidation of commodity

un¬

any

seems

affect the

Bankers

and

CAPITALIZATIONS

instalment sell¬

on

all,

Bank rate

con¬

it is possible to

very

imposed

rate,

continues

as

the

ing produced

rate has

Bank

outward

have

tions

consumption

Finds increase in bank

demands for

Nor

the

demand

judge

high in

too

are

OFFICERS, ETC.

REVISED

of

sumer

move

root

BRANCHES

NEW

increase

Commenting

NEW

logical and material effect of the

By PAUL EINZIG

!«**■

Thursday, March 24, 1955

...

of

Westchester,

White

f

Number 5414

Volume 181

April

on

.

The Commercial and Financial Chronicle

.

the bank's
Ralph
T.

in

1955,

1,

division,

operations

.

The

Tyner, Jr., President, announced.
Mr. Taylor
joined the Montclair
Savings Bank in 1946 as

Del.

Assistant

eral

elected

Treasurer

and

was

in

1953.

From

Treasurer

1940 to 1946, he was

with the Ex¬
amining Division of the Federal
Deposit
Insurance
Corporation,
Second
Mr.

Fund, Inc., Trustee of the New
Jersey Bankers Association In¬
Fund

surance

the

and

Committee of

the New Jersey Bankers
He

is also

Executive Committee

Jersey

Associa¬

member

a

tne

ox

of the New

Conference of Bank
and Comptrollers.

ditors

*

of

member

a

School Savings

tion.

of

Company

also

members

State

Reserve
4.

branches

The

Wilmington,
of

the

Fed¬

former

of

head

the

on

office

Industrial

the

by
*

*

Au¬

*

Wilmington

of the Bank

of

of¬

Salem, Va„

that A. M. Bowman, Jr., is
as

President,

and

D.

retir¬

Robley

Wood, Vice-President of the Bank
of

Virginia, in charge of its Rich¬

mond
his

office, has been

Cashier

added

was

named

is

of

He joined

Virginia

May

on

is

1951.

bank President is past

new

of

man

ginia

Five

Group

of

to the Bank

came

Orange, Va.

Board.

The

is

Bowman

nine

years

Bank

of

President

as

Salem.

President

the

of

He

was

bank

of

been

the

fourth

from

the

H.

Gowanda

of

Bank

of

Salem,

it

week.

this

He

of

Buffalo,

N.

March

17

change

rine

was

through

*

office

coordinator of

branches, will become officer in
charge of the bank's main office

of

an¬

Continued

replaces

completed
the
ex¬

Midland
As

stock.

Cor¬

Bank
of
previously

for

stock

the basis of the ex¬
eight shares of Ma¬

announced,

change

Y.

Marine

of

*

Gowanda, N. Y. by
Corporation

on

Gowanda

has

was

was

Midland

share

each

for

Bank of Gowanda.

of

It is expected

that the Bank of Gowanda will be

with

merged

Company

the

of

March

on

31,

1954

York

New

The

31.

Gowanda's total

Trust

Marine

Western

Bank

amounted

Dec.

to

$10,000,000.

of

at

resources

It

approxi¬
operates
Eden,
N. Y. This acquisition brings to 66
mately
offices

in

Gowanda

and

HIGHLIGHTS FROM THE

the number of communities served

by Marine Midland banks and in¬
creases
tne
numoer
of
banking
offices

138.

to

proposed
Gowanda
Co.

of

References

of the

merger

with

Marine

the

Western

''

ap¬

in these columns Feb.

peared

for,/-WS-e

Trust

York

New

ANNUAL REPORT

the

to

Bank of

*

*

~

of

City,

Assistant
he

LionOil

N.

ment in

ing increased volumes of production and sales.

in

with

The year saw

1949, Mr. Four-

sive

banking

will

continue

office

1

at

gen¬

and

the

bank's

Exchange

main

Chase National Bank

new

Orleans,

was

chemical installation
put into

production in

equal to that in oil. The

a

The

became

$3,060,000

ing

by

000,
in

dividend

the

directors

voted

November

in

*

First

The

North

capacity throughout the last half

in

PELLETING
THE

NEW

LULING,

effective

Mawr

National

Bryn

Mawr,

Pa.,

stock

of

with

and

Trust

The

Company,

under

the

the latter

1954.

into storage

for sale during the spring

close
An

or

remitted

$2

per

share. Dividends, which

quarterly, have been paid

OPERATING

SUMMARY

Net

1954

Number of

2.98

3.11

$109,071,543

$99,039,397

Crude Oil Run

$101,135,922

$96,246,302

Total

3,090,912

3,090,890

16,807

16,498

6,181,794

$ 6,181,775

•••••

Properties (Fixed Assets)

.....

31

Net Worth—Dec.

Shares of

Producing Wells (Net)

$25,784,256

Gross Crude Oil Production—Barrels

873

8,333,034

..

7,829,481

8,853,248

..........

8,421,579

376,151,644

363,954,581

225,605

to

Refined Oil Sales-Gallons

Elemental

Capital Stock Outstanding

Stills—Barrels

1953

937

172,809

Nitrogen (N) Production—

Tons

Number of Stockholders

of

the

Dividends

$

Paid

Annual

CONDENSED EARNINGS STATEMENT (For Years

of

Employees—Dec. 31

Payroll

Mawr

Bryn

Mawr,

and

title
as

Dec.

bearing

on

of

Amount

Net Income Before Provision for Taxes

Estimated Federal and State Taxes

on

on

Net

Income

26.55

73,034,145

$29.11
23.63

5.35

16,925,260

5.48

5,454,000
.,

$89,959,405

16,525,426

Income

Income

$13,547,482

Per Share

$31.90

82,059,372

Operating Charges, Interest, Etc. (Net)

2,732

14,865,861

1953

Per Share.

$98,584,798

Sales and Operating Revenues

31,
an

$

,

merged

Bryn

2,992

Ended December 31)

1954

.

Amount

was

charter

Total

Number of

1.77

6,237,000

2.02

$11,071,426

$ 3.58

$10,688,260

$ 3.46

agreement for the merger of the
two institutions appeared

columns Nov.

con¬

SUMMARY

1953

common

business

item

year repre¬

earnings and totaled

tinuously by the Company since 1936.

$ 23,787,585

Working Capital—Dec. 31

Total

from

bank, effective

of

$6,181,794
are

grow¬

its

Bank,

with

$200,000
into

net

.

1954

of

Bank

Department)

Treasury

paid during the

of

'

in the
currency's
(issued by

Piryn

the

.

FINANCIAL

advices

to

55.8%

*

*

According

Pa.,

.

Dec. 31

Comptroller
of
the
Weeklyn
"Eulletin"

of

PLANT,

LOUISIANA

ap¬

stock dividend.
*

Cash dividends

sented

seasonal and much of the production went

TOWER AT

BARTON

Net

26,

Cottage Grove field in Bossier Parish,

Louisiana.

earnings. The movement to market of the

Current Ratio

Jan.

felt

ing season of 1955.

$100,000 to $300,030 by a $203,000

the

the

year,

not

included the Battle¬

NITRATE

THE AMMONIUM

*

National

was

year

the

by
and

Bergen, N. J. increased

caiptal,

Company during the

agricultural chemicals manufactured there is

the bank.

*

un¬

ship field in Jackson County, Colorado, and

catalytic cracking unit.

the stockholders on
11, was the first of its kind

the history of

holdings in this relatively

explored basin. New discoveries made by the

by

proved
in

$3,000,-

stock dividend of $60,to which it was indicated
Jan.
13 issue,
page
174,

as

Jan.

Jan. 25, hav¬

in the Colorado

Although The Barton Plant operated at

Na¬

a

our

that

on

increased from

been

000

First

was

an

additional

of New

City, N. J.

Jersey

wells

during 1954 in four separate fields. Lion

has substantial

pro¬

which included the construction of

gram

near

the

of

of

gas

Company completed 64 net producing

wells

❖

capital
Bank

standing development

start

major refinery expansion

the full benefit of the installation
tional

completions of oil and

by Lion Oil Company in the year 1954 showed
a
gain of 48% over 1953. The year's out¬

the

completion of

York for three years.
*

Successful

an exten¬

of this plant followed by six months the

Jer¬

Place,

Plant, the

New

the octane

portion of the Denver-Julesburg Basin where

up

Prior to joinmg First
National, Mr. Flournoy was with
the

increased

chemicals about

business

City.

sey

an

marked improve¬
ratings of the Company's
a

June, 1954, and brought Lion's investment in

He
engaged in

be

to

in

development

near

department.

banking

general

the

to

transferred

was

the completion of

expansion of manufacturing facilities. The

Barton

in 1951 he was ap¬
pointed Assistant Cashier and in
eral

permitted

year,

gasolines.

partment;
1952

J?

refining facilities, which operated

efficiency in yields and

con¬

tinued, with all divisions of the Company show¬

assigned to the credit de¬

noy was

Company.Growth and expansion

new

throughout the

Cashier

associated

became

First National

was one of the greatest
of accomplishment in the history of

years

Vice-President.

from Assistant

Flournoy
When

Thomas

of

The

r|r1HE YEAR 1954
A

Bank

announced

has

promotion

to

National

First

The

Jersey

the

_

*

Kingsbury S. Nickerson, Presi¬
of

<»

'

and March 10, page 1142.

page 712

dent

w'

wic.

& ■//'/

10,

in these

4, page 1847.




For

,1954 Annual Report.

.

.

the

Herbert C. Moseley, Vice-Presi¬
dent of The Bank of Virginia and

was

Cashier

of

Valley.

his
banking
career
high school, and after a
duty with the U. S. Air

Midland

Marine

poration

and

Jr.,

Gentry,

Assistant

named

nounced

1930

of

central

William

after

Clinch

Virginia in Roanoke. In January
1949
he
accepted a position in
Tazewell, where he remained un¬
til coming to Salem.

of

it

Cashier

Force he returned to the Bank of

stated:

retiring

of

*

item

Lewis

Tazewell, where he

Bank

1954.

another

Andrew

began

tour

Givens

Mr.

Vice-President

of

Assistant

while in

June

the Bank

of

Acquisition of over 90% of the
capital
stock
of
the
Bank
of
the

in

replaced Wm. H.
Cashier. Mr. Early

as

in January,

still

In

Vir¬

He

year

named

Cashier

Association.

Bankers

Co.

graduate

Farmers

Vice-President

President

now

was

Assistant Cashier and the

Orange,

Chair¬

the

as

was

The

A

the bank's

Fincastle

from

Salem

following
Early, Jr.,

the Bank of

14,

becomes

Exeecutive

1944

Executive VicePeoples
National
Pulaski, and Vice-Presi¬
of

Bluefield.

has

who

recently re¬
position with

to Salem from

of

was

in

bank

by the Board.

Mr. Givens

and Cashier. He

as

Glad

dent of the First National Bank of

simultaneously elected
the

as

the

served

Bank

the

a

High School, Mr. Gentry returns

first

formerly
the

of

Freuhoff

of

who

accept

elected

said.

Wood

Bank

In part

to

23

held that position twice and is the
first
full-time
President
to
be

H.

continue

bank.

Booze,

signed

as

it

Bowman

Mr.

of

the

also

Cashier

*

Chairman

of

account
Mr.

will

Givens

Mr.

ier.

Frank

President

Execu¬

be C.

Givens, Vice-President and Cash¬

Mr.
successor.

bank's

the

as

serve

President

the

among

Virginia newspaper accounts state
ing

To

until 1933, and was again elected
on Jan.
17, 1948. He is the only

said.

same sources

tive Vice-President Will

Spring,

*

Noting changes
ficers

change will become effective

April 11. The

Company will be operated

branches

as

of

System occurred

Feb.
and

Trust

Industrial

the

Wilmington,
Wilmington Trust

the

both

is Treasurer of the
Bankers
Pension

Jersey

Company
with

Trust.

District.

Taylor

New

of

merger

Trust

(1387)

WRITE: Public Relations Department, 81 1 Lion Oil Building, El Dorado, Arkansas

cn

page

24

.

C.

Thomas

on

capital

dinator.

takes

He

has

resigned

President oi

Bank

The

joined

turers

National

the

of

Harvard

at

result

a

that

1954,

Administration.

he

branch

went

On

Jan.

as

in

the

from

$200,000

the

of the

completion

1,

to

in

the

of

thereby

Kucharo,

$300,000

All the

said,

that

stated

Moines

coordinator for the bank's

Gregory

attorney,

Brunk,

announced

clothing

Inc.,
new

share

a

controlling

the

for

Bank

Fort

in-

Lauderdale, Fla.,
capital from $750,000
to $1,000,000 as a
result of the
sale of $250,000 of new stock.

purchased

the

be

officers,

bank's

he

stock

There

purposes.

change in

no

firm.

Mr. Brunk

owners,

said,

nual

on

an¬

at

the

Erwin

W.

continue

will

officers

Feb.

of

18,

are

newly

its

of

capital

$1,250,000,

sale

of,

result of the

as a

$250,000

to

of
as

enlarged
increased

$1,500,000,

from

Plans

Bank

effective

reports

of

stock.

new

enlarge the capital

were

to in these columns Dec.

9, page 2368.
*

*

*

Appointment of Sam F. Holmes,
Jr., as Assistant Director of Ad¬
vertising and Public Relations for
the First National Bank of

howe, Vice-President and Cashier;

Texas has been announced by Ben.

H.

of the staff of "The Dallas Morn¬

Auditor; Floyd L. Fiene, As¬
Vice-President; and Leo

Wooten, President. A member

ing News" for the last eight years, !

J.

Mr. Holmes specialized

Capdevielle, Assistant Cashier.
are
Jones, H. E. Betts,

Directors

Peters.

G.

Dunbar

and

Dr.

E.

F.

♦

♦

in county

government and political writing
before

becoming

editor

an¬

business

than

more

a

news

and

year

♦

a

half ago. He will assume his new

As

affected in the transfer

Dallas,

sistant

change

no

Ala.

Jones, President; Robert M. Don-

Harold

The other 52 shares of the bank
not

Dreher

and

bank.

meeting will be July 12.

were

Brunk

directors

the bank's

and

Mobile,

*

*

National

First

The

referred

Messrs.

*

increased its

nounced that the same officers and

The

*

*

As of Feb. 18 the First National

and

Herman

of

in the board of directors. The

Des

March 4 the sale of 149 shares of

offices.

Treasurer

investment

will

Moines

"Register & Tribune" of March 7

as

and

dent

for

Des

or

from

Margaret Johnson, Vice-President

shares each. Mr. Kucharo is Presi¬

*

♦

$512.55 a share. Mr.
announced when he bought

$450

pur¬

Brunk, acquired five shares; and
Kucharo and Dreher acquired 149

of Jan. 21.

as

*

Advices

capital

raised

been

10, gave the purchase price

the stock that he paid $201,600, or

10. Mr.

chase and reissuance of the stock,
Mr. Brunk said, he acquired 145

the

dividend

stock

become effective by

figure

$600,000 stock divi¬

dend.

who said the

owners,

interest.

effective

$100,000

the

of

take the

we

that

to
a

*

new

$229,624,

Beh

bought the stock Sept. 4.

In

*

of

a

Uni¬

Richmond

to

of

amount,

having

versity's Graduate School of Busi¬
ness

effective by Mar.

Mar.

shares; his wife, Martha Goodwin

The Bank
city. From

Program

*

increase

An

of Virginia
September,
1953, until mid-December of the
same
year,
Mr. Moseley partici¬
pated in, the Advanced Manage¬
ment

became

issue

earlier

(Jan. 16)

transfer will

announced

become
Beh

capital of the National Bank of
Burlington, Iowa has occurred as

of

that

been

25.
*

September of the following year,
he went to Roanoke as officer in
charge

The

from

stock dividend of

a

$800,000, which
Jan.

Detroit,

of

Bernhard

and

raised

been

following:

purchase of
this stock from Carleton D. Beh,
Des Moines municipal bond deal¬
er, Jan.
15, under a contract to

Manufac¬

having
figure

that

to

$7,200,000 by

Jan.

on

Bank

amount

increased

Virginia as

the

by

about

Mich.,

1, 1945, in charge of the Peters¬
burg office. He was elected a
Vice-President on Jan. 1, 1947. In

11

Thursday, March 24, 1955

...

$400,000 by

own

the other two shares.

an

500 shares of common

bank's

They

capital of $8,000,000 has been

1928

in

Vice-President

Assistant

A

brought

County Bank,

career

the Campbell

with

*

*

each;

owns

From

purchase in connection

E.
G.

shares; Harold

Dr. E. F. Peters

shares

10

Evers

stock.
*

of Salem,

Kuch-

Mr.

of

25

H.

shares.

five

owns
owns

"Register"

the

$600,000, effective Jan. 14,

to

Dre-

said.

Brunk

Mr.

Jones, President of the

Dunbar and

with the transfer of 448 shares of

$400,-

become

to

Bank

aro's stock

National

Citizens

the

Decatur, 111. from

1955.

Moseley who be¬

banking

his

gan

The

Va. Mr.

Salem,

000

new

Robley Wood,

post succeeding D.
who

the

over

of

of

Bank

announcement

W.

bank,
Betts

say:

Robert E.

and

ownership,

Erwin

clothier.

to

on

her, one of his law partners, made
the

brought about an increase in the

dent, has announced. Mr. Moseley
retains his status as branch coor¬

Brunk

Mr.

dividend of $200,000 has

A stock

April 1,
Boushall, bank Presi¬
Va.,

Richmond,

went

of

State

Herman

to

Moines,

Des

advices

The

Federal

Moines

Des

Kucharo,

'News About Banks and Bankers
in

of

Bank

First

of

stock

the

Continued jrom page 23

in

The Commercial and Financial Chronicle

(1388)

24

of

tional

Fla.,

Jan.

Florida

25

the

at

St.

Bank

became

Na¬

Petersburg,

$1,000,000

having

duties
ton

April 4 and will assist Clif¬

Blackmon, Vice-President and
Advertising and Pub¬

Director of

lic Relations for First National.
*

*

♦

Election of J. E. Jonsson, Presi¬
dent of Texas Instruments,
Inc.,

Dallas,

as

member of the Board

a

of Directors

Highiighi{

of

tional Bank

the

Republic Na¬

of Dallas, Texas, was

announced

jointly on Mar. 10 by
Karl Hoblitzelle, Chairman of the
Board,
and
Fred
F.
Florence,
President of the bank.
*

*

*

Representing its conversion
from

State

a

to

a

National

bank,

the Fidelity State Bank of Austin,;
1953

1954

1952

1951

Austin,

1950

Texas,

charter
k

Operating

Revenues

■

Operating

Expenses

H

Operating Ratio (Expenses to

H

$109,128,668

$116,886,004
'

$149,337,054

72.79%

72.03%

74.47%

72.91%

$ 16,714,694

$ 16,782,998

$ 14,851,838
$ 23,989,328

$ 24,851,281

$ 23,930,805

$ 20,052,275

$

18,469,252

$

$

$

$

$

4,294,103

$ 18,319,327-

,

Contingent Charges

.

.

3,856,758(a)

3,943,448(a)

3,942,200

4,061,561

a

of

Net

Charges Earned

Income

after

6.22

6.30

6.07

4.94

4.30

$ 20,132,570

$ 20,907,833

$ 19,988,605

$ 15,990,714

$ 14,175,149

....

Charges

.

.

.

Stock

$

(b)

Balance of
to

Shares of

$

(a)

(a)

7.17(c)

$

and

$

1,703,750

$
$

$

1,697,300

$ 18,428,820

19,210,533

770,792

$ 19,217,813

2,704,759

$

566,608

$

262,483

$ 12,356,652

bearing

Common

to

-

Stock (b)

Retired

2,365,057

2,349,475

150,000

Per

Share

2,125,000

2,125,000

in

our

Common
stock

Common

Stock

None

None

$

Stockholders

at

End

3.80

$

$

5.00

$

3.00

2.10

$

5.00

$

5.00

1.70

$

$

Sir H. Cassie

Revenue

5,672

5,302

4,205

4,260

45,298

43,744

43,896

43,050

39,723

8,787,838

9,269,600

9,140,307

8,262,713

.

Miles

Ton

.

...

(Thousands)

Average Revenue Per Ton
Passengers

Mile

.

8,756,928

.

.

$

Carried

.0142

v

$

.0148

1,079,244

$

(Thousands)
Per

450,142

Passenger

Number

Total All

Mile

Wages

of

$

.0135

$

.

Employees

.

$

.0266

500,413

568,031

$

573,680

$

.0276

$

.0257

$

17,048

17,811

$ 70,392,637

$ 72,889,512

$ 75,362,033

$ 72,645,335

4,078

(b) Based
1954

Report

has

been

distributed

Seaboard's stockholders and

holders.

A

copy

may

be

security¬

obtained

by

W. F.

4,080

4,145

4,146

Seaboard Air Line Railroad

by

reason

of satisfac¬

(head

board

Company

of

of

cf

Com¬

Toronto)

election

d i

on

emergency

projects covered by Certificates of Necessity

Income tax purposes reduced the accruals for Federal

Income taxes in the

rectors.

an-;

of

M.

W.

Montreal,

to

its

-

Mr.

Mackenzie

i

s

President of

Canadian
as

deduc¬

Chemical

years

&

Cellulose

Company Ltd.
He

was

uty

shown in the above tabulation.

Chairman

of

I
SEABOARD AIR LINE RAILROAD COMPANY

i

*

Bank

office

the

Mackenzie,

1954,
1953, 1952 and 1951 by $4,950,000, $4,280,000, $3,375,000 and $1,885,000, respectively. These tax
reductions were equivalent, per share of Common Stock, as restated, in the
years
1954, 1953, 1952
and 1951 to $2.09, $1.82, $1.38 and $0.89,
respectively, of the earnings per share of Common Stock

Norfolk 10, Va.




years

*

Canadian

merce

shares outstanding as of December 31. Years prior to 1953 restated to reflect effect of the
splitup of Common Stock on the basis of 2'/2 shares of $40 par value for each share without
par value
(stated value $100), which became effective July 23, 1953: The earnings per share for 1951 and
prior
years are after providing for dividends on Preferred Stock, none of which was outstanding on December
31, 1952, or thereafter.

tions for Federal

CUMMINGS, Secretary

a

to

on

(c) Taking accelerated amortization

writing to:

as

order

Deputy-Chairman in

a

*

The
4,064

office

in

$ 63,679,362

(a) Contingent Interest and Capital Fund requirements not applicable to these
tion of General Mortgage in 1952.

The

his

his place.

17,400

nounces

to

member of the Board,

a

relinquished

appointed

.0245

16,402

.

that

announce

William Donald, C. B. E., has been

'

.0275

11,

make way for a younger Director.

1,423,636

551,133

Nov.

Holden, Bart., while

Deputy-Chairman

.0133

1,465,186

15,309

.

Miles of Road Operated at
End of Year
.

has

,

r

Average

.0144

1,320,370

1,206,164

Passengers Carried One Mile
Revenue

remaining

Revenue Freight Hauled
.

of

*

The Directors of Midland Bank

1.20

6,306

of

(Thousands)

*

Limited, of London,

of

Year
Tons

*

(giving effect to

split)

issue

1961.

page

Paid:

Preferred Stock

is

the plans of the bank
enlarge its capital ap¬

1

Dividends

Wilson

*

on

thus

peared

150,000

2,439,475

—

—

M.

*

000 to $2,500,000 by the sale of
$500,000 of new stock. An item

$ 11,207,907

Capital Stock Outstand¬

Preferred Stock

J.

As of Jan. 28 the Alamo Na¬
tional Bank of San Antonio, Tex.,
increased its capital from $2,000,-

6.32

3,067,454

Transferred

Surplus

ing at End of Year:

K*]

$
$

#

Income

Earned

8.19(C)

$

8.90(c)

■

(a)

Sinking Funds

H

$

8.51(c)

Applied to:
Capital Fund

Austin,

having,,

Cashier.
*

Income

Austin,

capital of $500,000, and surplus
$369,784. John C. Avcock is

Net Income Per Share of Common

x

of

conversion

President

'

Times

a

taken effect Feb. 14. Under its Na-,
tional Charter the bank will have

and

Contingent Charges
Fixed and

$

received

Comptroller of
for the City Na¬

Bank

the

has

the

Currency

Texas,

,

'

17,793,534

from

tional

$ 98,822,143
's

•

the

$135,536,777

$111,211,467
*
l

73.01%

Income Available for Fixed
,

$112,836,072

.

$160,584,277

♦

Taxes

w

INI

.....

Revenues)

V

$156,643,985

$149,472,568

f

the

dep¬
War¬

time

Prices

and

Trade

Board, subseq

u

e

t 1 y

n

served

as

Deputy

M. W. Mackenzie

Minister,

De¬
partment of Trade and Commerce
1945-51

and

Department
tion

1951-52.

as

Deputy

of

Defense

Minister,

Produc¬

Number 5414

181

Volume

.

.

The Commercial and Financial Chronicle

.

tised

investigation will soon be
forgotten, as far as the stock mar¬

action of

ket

Bull Markets

from further China

is

concerned.

Smells

t

Committee

I

Fulbright

the

wonder why it

fines its investigation to
The

market.

real

con¬

the stock
of

market

bull
the

two

past

has been

years

avoid

war

depression.
It

throw

and

action

the

of

Republicans
the

No

one

a

in

knows.

now

on

to

but

house

quired

to

market

nent

FIF Adds to Staff
(Special to The Financial Chronicle)

DENVER, ColO.—Frank Corbin,
Jr., is now connected with FIF

China.

This

sonable

to

the

blame

Democrats

does

not

rea¬

seem

view

in

me

the

of

(Special to The Financial Chronicle)

With Minn. Sees. Corp.

ple

ROCHESTER, Minn.—Arthur G.
Schreibert is

now

connected with

Minnesota Securities
100

borrow

houses.
make

The

Corporation,

It

21

is

As

financial

next

straight

of

years

get peo¬

collapse

market

collapse.

will

a

uncovered

Co.

offices

enue

to

Samson

Forrest

Billions

Millions

not

of

of

growth

Total

Therms

Millions of Dollars

With

Sales

Kwh

and

Gas

Revenues

Millions of Dollars

5-

$24

stock

a

it

there

scandals, cor¬
losses, while
come
through

will

*-

untold

Wall

Street

with

A.

are

Electric

buy

20

clean slate.

a

16

100% Margins Crazy
feel

I

that

the

of

suggestion

Professor

John

braith

Kwh Sales

/

Harvard

of

Gal-

Kenneth

-

College for
100% margins indicates ignorance
business

of

customs

and

,

J?

ethics.

for

ing

rities

companies

must

be

York

whose

/ Therms

,y

secu¬

through the
Exchange. This
issue new stock

Gas Revenue

40

sold

20

s

Stock

that, to
out extension or im¬
provement programs, purchasers
means

to

12

/
#

/ Gas Sales

Today probably 85% of all those
employed in industry are work¬

New

Electric
Revenue

carry

these

of

stocks

be

must

thereon

borrow

able

from

both

to

co
co

IT)

O

LO

co
cd

co
en

-Ti¬
cr>

««*
CT>

s

LO

o

o

co
cn

LO

co
CT>

to

*3to

en

cn

cn

cn

Stock
includes

Exchange firms and from banks.

Requiring

must

manpower

wise

be

procedure.

times

of

peace,

is

saved,

To

and

do

Revenues

a

in

so

when

into

of Northern

climbed steadily

the

States

for 21 straight

Power
years.

Company,

as

electric

critical

revenues

stem from residential and rural

we serve.

an

sales, while this proportion

to business fluctuations. The remainder of our electric revenue, as

terials

And gas

and

foods.

Therefore,

39%

chart

I

suggest that people again be en¬

in

"Buy American In¬
dustry" in order to help employ¬
ment

hold

and

up

us

"steam

assume

in

prosperity

the

below,

our

to

comes

sales and

This, of

from

a

course,

is highly desirable

was

the least sensitive
shown in the bar

healthy balance of industrial, commercial and other sales.

revenues,

too, are climbing as more natural gas becomes available

territory. Thus, independent of

NSP grows stronger year

revenue,

by

year.

Have

any
your

single industry

or group

secretary write for

our

of customers,

Annual Report.

prosperity.

Residential-Rural sales produce 42% of NSP's electric revenue

Looking Into the Future
Let

ten years ago.

unusually well-

Today 42% of NSP's

shooting war
with China, there is no need for
100% margins. We already have
top-heavy stockpiles of both ma¬
a

couraged

telephone and steam

presently constituted, have

Underlying this growth is

balanced diversification in the classes of customers

country is facing unemployment,
is foolhardy.
Unless we are to
get

gas,

100% margin in
when materials and

a

of war,

case

electric,

there

boiler"

throughout

is

enough

to

extend

1956

fife $43.5 (njllliofis of iioliars)i

and

re-elect Eisenhower if he
chooses to run again. But do not
forget that there will be a day
of reckoning sometime. Notwith¬

from Residential and Rural sales.. .42.2%

safely

from Small

standing the Administration's suc¬
cess in "nipping in the bud" the
1954 decline, it is very skeptical
of
any
large-scale attempts to
hold employment and prices up
artificially.
Certainly Roosevelt
tried everything from "revaluat-

$23fV:from Industrial sales

\

fitt,

r

%!/

Light and Power sales

'

.23.5%

22.4%

W'

n—f

A

fAl

7.2%

jjf

ing the dollar" to "raking leaves,"
none
of
those
medicines

and

$7.4 from sales to Co-ops and Municipalities

$4.8 from other sales

4.7%

-

worked.

Only World War II turned the
scales and

brought back full

Northern States

em¬

ployment with price recoveries.
Perhaps
even
World War
III
would not accomplish this again,
with fixed prices, heavy taxes on

profits, and other controls. Per¬
haps the Russians would rather




J^|

Power Company

Minneapolis 2, Minnesota

Serving

a

thriving

area

formed

Funston

Av¬

in the securities

engage

business.

been

640

Company

revenue

to

not

—

ruption, and

has

at

brings

does

badly of
result, the
will be a

panic

housing
be

to

smells

politics.

&

with

Donald

First Avenue Building.

Northern States Power

can

Further¬

order

program

sense.

cheap

in

FRANCISCO, Calif.—S. A.

Judah

house

a

Government

of inducements

to

SAN

(Special to The Financial Chronicle)

discouraging investment in Amer¬
ican industries, it is offering all
kinds

Stock Exchange.

S. A. Judah Co. Formed

Street.

mar¬

Dulles'
speech,
an ultimatum to

with

ATLANTA, Ga. — Kenneth B.
Clary has joined the staff of Blair
&
Co.,
Incorporated,
RhodesHaverty Building.

Management Corp., 444 Sherman

to

connected

Joins Blair & Co.

States.

the

order

now

the Los Angeles

an end

slump
on
which suggested

much-adver¬

in

is

Mitchum, Jones & Templeton, 650
South Spring Street, members of

run

pushing

been

ANGELES, Calif.—Dudley

Frank

(Special to The Financial Chronicle)

were

that

claim

Democrats

ket

Both Senator

the United

Diversification

buy

stocks; but

the

B.

(2)

mar¬

5% margin, or less.

while

market;

trust President Eisenhower to

to the investigation.
understand that other promi¬

put

60%

buy
more,

his

(Special to The Financial Chronicle)

LOS

Don't

is

gin

a

report.

and

Democrats

down

pub¬

must

up a

on

final

panicky

(1)

Now

true. The

Roger W. Babson

its

Fulbright

a

is:

With Mitchum Jones

My

re¬

reverse

lic

in

in

readers

troubles.

30%

a

margin.
the

a

margin;
buy a

the

have

I

housing. In Fulbright Committee will discuss
the pub¬ some constructive phase of the
lic could buy business and employment outlook
10%

to

on

control.

bring

1929

stocks

if

the

in

The

claiming that it
would
happen
to

Republicans

day if we all "go through the
wringer," there could be a bad
mess
for
a
while.
I hope the

market.

blaming it all

are

what

The

is, however, certain that some

stock

Democrats,

shows

into

us

sell

airplane stocks and
which should prosper

entire

The

business

following

Politics

of

the

rails,

Don't buy more now, at
present
investigation
has
smelled of politics from the first. high prices; (3) Work harder at
your own
regular business and
Both parties are surprised at the

the hearings of the Fulbright Com¬
mittee, expresses wonder why the investigation is confined to
stock market speculation. Says housing speculation is more
dangerous, and that the proposed requirement of 100% margin
is "crazy." Holds entire investigation smells of politics, but
warns "there will be a day of reckoning sometime."
While

the

advice

By ROGER W. BABSON

Mr. Babson, commenting on

25

(1389)

in Minnesota, Wisconsin and the Dakotas with electicity and gas

Judah

partners.

and

\

26

The Commercial and Financial Chronicle

(1390)

tent, the UAW has made guaran¬
employment—based on sup¬

Industrial Relations in

teed

plementary unemployment com¬
pensation—the key issue in this

The Economic Outlook

year's negotiations.
I shall attempt evaluation of the

By RICHARD A. LESTER*

guaranteed annual wage at a later
point.
Here I only want to state
that the UAW has gone so far on
this issue that it presumably will
have to strike Ford or General

Professor of

Economics, Princeton University
•"

1

•G

.

specialist of Princeton University, after analyz¬

Labor relations

implications

ing the economic outlook for 1955, takes up the
of

guaranteed annual

a

and

run

I

long-range focus.
like first to analyze

a

should

with

the prospects for labor

you

dur¬

relations

the

ing

of the

1955,

and

the

on

so-

called guaran-

cur.

wage.

For

Next I shall

and

the

examine

the

this

in

relations

industrial

in

during

country

past two decades, and I shall
the

consider

implications of past

developments for the future of in¬
dustrial relations in America, say,

the next decade.

over

hope to merge the
short-run and long-range views
into some sort of general picture,
I

Finally,

point out its implications
for labor relations legislation.
This is a tall order and I beg
to

and

the first half of 1955
exceed
any
similar period

since 1950 and dividend disburse¬

occurred

have

ments will be at
for
a

an

all-time high

first six months'

a

period; (2)

significant volume of unemploy¬

ment

perhaps

averaging

three

million will exist,

will be

so

but the upswing
general that wage pat-

tern-spreading will.be more prev¬
alent than during the past two
years;

and (3) the price level and
continue to

the cost of living will
be

stable,

as

has

been

true

for

n

Implications

for 1955 Industrial

Economic

forecasting
occupation, but

ardous

and

reason

act

is

a

one

projec¬

some

on

haz¬
must

tions.

My reasoning will assume
expansion in our military ex¬

no

penditures.
indications

The

will

be

a

year

that

are

of upswing

1955

half of the year.
In

opinion, we are now in
cyclical situation,
with the minor cycle, averaging
about
40
months
in
duration,
reasserting itself. The 1949 and
a

my

rather normal

1953 recessions
of much the

to

seem

same

me

variety

as

that occurred in 1924 and
shall

not

ther but

press

those

1927.

reexamination of

a

to be

I

analogy fur¬

the

1927

and 1928 at this time might be il¬

luminating and instructive for

our

present and the near future.
The economic upswing in recent
months has developed some "vul¬

nerable

positions"

spots" that could

cause

the latter half of 1955
That is

veloped

because

so

"danger

or

trouble in
in

or

1956.

they have de¬

rate of increase, stimu¬

a

lated

by easy credit terms and
credit expansion, that cannot be
maintained for any considerable
length of time.
I

refer

build-up
already

to (1) the
dealers' stocks

particularly
of

in

auto

this

new

cars,

year

to

a

record

©00

model

known as
because wage

year

ments

tended to

fivesettle¬

a

cluster around

fringe

called

been

seven-cent

a

high of perhaps 650,(2) the expansion of

of

Nineteen hundred and fifty-five

will probably be a seven- or
number

with

a

eightsignificant

settlements

of

the

But

war

the

first

whole

a

set

rights and could well re¬
stock before one side or

new

quire

of

a

the other

gives in.
significance, strikes

relative

have

been

declining

past few years.
out of every

ployees

resulting from
dispute.

management
lowest

post-war

trend may

was

strike

some

in¬

the amount of time

lost

destined
in

to

see

With

the expiration of the five-

agreements

negotiations

the

and

for

the

critical

guaranteed

annual

wage, collective bargain¬
ing is faced with some really dif¬

situation

for

negotiate

a

ment

company supplemental
laid-olf workers;

Many

the

postwar

pe¬

riod, but in others, like railroads
electrical

equipment,

hardly talk of

can

one

in terms
prospects for peaceful set¬
tlement
through the process of
progress

asserted

build

of

a

offs later
auto

that

The

year

and.

a

half

to

a

♦An address by Prof. Lester before the

Associated

Industries,

Cleveland,

March 10, 1955.




Ohio,

year

fear

a

elim¬

may

jobs.

industry's economic

struc¬

ture and situation lend themselves
the

to

negotiation of such

(a)

the

for

gram

following

pro¬

a

reasons:

the rivalry and independence

the big three permit the union
to threaten to strike one and play
of

the

though it

as

may

rather turblent year for la¬
bor relations.
a

other

Guaranteed

So-Called
Annual

the final
in

The issue of guaranteed employ¬
ment is so critical this year that I
due

the risk of creating un¬
irritation or boredom by of¬
run

fering

brief

some

—

almost

dog¬

matic—comments.
I

including

with

start

statement

that

all

one

which puts
influence

to

production

and

processes

policies,

and

and,

through advertising and price pol¬
icy, they exert influence on the
ultimate

(d)

heavily

directly,

consumer

automobile

in

concentrated

industry's

is
few

a

like

a

to

over

look

back

decades

and

to

raise my

long-range view,
the

past

two

look

to

forward be¬
That should help

yond this year.

to get some perspective on this
year's problems and events in the

there

modification

of

industrial relations.

of

area

Remarkable
curred

changes

in this

and in
of

trade

Most of

occupied

so

probJems

that

perceive

unions

us

with
have

we

have

current

failed

clearly the main

broad

or

oc¬

the labor relations policies

managements.

been

have

country during the

past two decades in

developments

to

trends

in

indus¬

trial relations and, therefore, have
not grasped their full
meaning or

significance.
Since

the

unionism

1930's,

with

into

maturing.
move¬

crusading goals, the
have metamorphosed

unions

new

American

been

has

agitational protest

an

ment

administrative

and

service

agencies—oligarchic, bureaucratic,
businesslike

and

tions.
tion

With
of

union,
had

in

their

increased

control

in

opera¬

centraliza¬

the

national

zeal and leadership have
tendency to dry up at the

a

roots.

grass

The activities of unions

now

largely contract-making and

tract-enforcing.
part

come

of

are

con¬

They have be¬
orderly process

an

for

enforcing discipline and pre¬
venting wildcat strikes. Even in
authorized
strikes, stress in re¬
cent years has been on
orderly
procedures,
with
protection
of
equipment from damage.

Through
other

welfare

funds

and

investments,

unions have
large financial

come

to

hold

stake

in

American

a

industry.
It
surprising, therefore, to find
leaders reading the "Wall

is not
union

Street
The

Journal."

personal lives of union of¬

ficials
their

have

also

higher

changed

with

status

and

greater

The

top

/eaders

respectability.

have salaries ranging from $15,000
to

$50,000, plus ample expense ac¬
counts, and
many
live at that
level. Not infrequently they drive

Buicks, Chryslers,

or

Cadil¬

even

lacs.

During

Michigan.

domination

facilitate

would

and

employment

states, with half of it in
The

the

consumer,

position

a

control

sales

Wage

(b)

panies control production and dis¬
all the way from parts

to

should

I

sights to take

tribution

and

The

it;

of the big three is

more

them

Ill

against

two

usually
making good profits; (c) the com¬

or

the

trade

union

more

and

past

decades,

two

leaders have

more

opposed

become

to

gov¬

fringes amounting to 15 cents an
hour. That conclusion rests prim-

academic experts in social insur¬
ance and industrial relations seem

the Michigan law, if necessary, to

ernment

permit private supplementation of

less and less interested in the idea

marily on two grounds: (1) that
corporations' sales and profits will

in agreement

state

be

governmental auspices in prefer¬
able to any arrangement for pri¬

that

vate

receive

increasing in the first half of
1955, and (2) that the automobile
industry will play an important
pattern-setting role this year.
I have already touched on the
profits prospects but the auto ne¬
gotiators call for some further

tainly is
But

The

Motors

and

agreements

Ford

terminate

around the end of

May; Chrysler's
expires in August.
Negotiations at the end of a
five-year agreement,

are

likely to

the outset in

weekly

is

concentrated

single negotiation.
Generally speaking, both

union
autos

and
seem

the

managements in
indisposed to enter

ceilings were es¬
approximately two-

at

employment. Now, in
ceilings average only about

two-fifths

of

average

They

should,

Federal Advisory Council
mended

the
The

the

1930's, the

covered

such

to

accumulation

the

a

weekly
as
the
recom¬

be brought
relationship.

year ago,

initial

up

whqle question of benefit

ceilings

in

pensation
revision.

unemployment

com¬

needs
In

living standards rise, nonimprovements are likely to

as

wage

is

rethinking and
recent, years in in¬

upon

at

this

union's

anteed

demand

for

a

guar¬

employment plan. By con¬
vention
resolutions,
educational
conferences,
extensive
prepara¬
tions, and other expressions of in¬

more

emphasis,

the

insecurity jitters

recession like the

one

repeat, I prefer

from

a

a

other

and

man¬

pro¬

cost

decisions.

they

have

words,

In

become
conservative in their union

more

During the past decade, national
regional bargaining have not

expanded

tive and other headaches.

under

However,
little

our

wishes

influence

events.

exert

control

or

may

over

have sought
unsuccessfully
to
raise
benefit
ceilings in line with wage levels.
Many

this

At

of us

stage the die is almost

cast.

Inadequate unemployment
benefits, especially the ceilings,
stimulated

have

the

guaranteed

demand.
Among other fac¬
tors, interstate competition for un¬

wage

—

burden has been cut to

the

one-

that in the 1930's—has pre¬

penalty

progress up the wage lad¬
of inverse incentive.

the

have

improvement
that
the de¬

forestalled

mand.

a

duction

Any program of sup¬
plementation is full of administra¬

pensation.

would

as

industry-coun¬

more and more wary

and

igan from 70 to 90% of all bene¬

act

an

industry,

proposals for sharing in
agement's responsibility for

lic system of unemployment com¬

real

sort

kind of

plan, and

of

of

single pub¬

employment tax lowering

ceilings

some

cil

ownership

philosophy.

last year.

dustrial states like Ohio and Mich¬

The

that

and

particularly true after workers

To

thirds of average weekly earnings
in

the

a

unem¬

benefit

tablished

earnings.

on

cer¬

of

benefits.

We should not overlook the fact

get

what is

especially
difficult,
because
demands for change in the agree¬
ment pile up for five years and

be

un¬

ployment compensation?
At

General

position.
"adequate"

my

un¬

under

compensation

supplementation of state
employment benefits.
That

elucidation.

five-year

that "adequate"

employment

der—a

a

this

be declining

may

automation

many

against

for

in-the year;

on-

production

the

ket

(2) the rush
early months
results in recruit¬

by May and June: and (3)

This year's automobile
negotlations are further complicated by

mar¬

per¬

campaigns followed by lay¬

yearly increase in the number of
families, and (3) the practically
continuous rise in the stock

high

a

the

in

cars

model year

ment

third

million

with

the workforce experi¬

centage of

vented-

a

itself,

encing some lay-off;

by the ceilings.

annual rate of about half

are

practically eliminated in the

ficiaries have been squashed down

current

a

workers

auto

decade ending in 1952 has now re¬

of the

be

Developments
Now

From

security-minded
be¬
cause
(1) the seasonal variation
in
employment in autos, which

exists

in

the

of

benefits to

especially

inate

experience

union

a

guaranteed

centive to stabilize in the form of

industries has improved with

some

favorable
seeking to

a

employ¬
plan, which is really an in¬

negotiating environment in

The

the automo¬

industry present

tasks.

ficult

and

The large firms in
bile

to

strikes.

to

benefit

was

the .long-term

seems

year

laborthe

a

It

year.

be downward, this year

crease

due

1954, only one

In

30 of the nation's em¬
involved in a work

was

stoppage

the

during

IV

Long-Run Trends and

us

especially hard hit by
ceiling of $30.
With a

two years. '

to

to

is

residential units greater than the

construction

payroll

total

$3,000 earned.

week

another five-year.agreement
time, so that any new
agreements may run for perhaps

home

from

tax,

set

the automobile industry this year,
but probably not without a strike.

overtime

The auto worker averaging $90

involves

issue

establishment

the

shall

year.

cent wage year,

kind

some

cluded.

hour.
In¬
benefits in 1954

perhaps averaged two cents more
so that 1954 might more properly
have

however,
of compromise—
mean,

appropriately dressed up—is pre¬

mode of five cents per

creased

not

a

re¬

or

especially during the first

covery,

Last year was

cent

does

lier—1955 looks

1955

for

That

the profit outlook mentioned ear¬

Relations
Economic Outlook

movement into highwork with large sums
pay,
(3)
interstate

temporary

already

some limited steps
supplementary unemploy¬
ment compensation to be taken in

toward

by

waiting period and Other restric¬
tions on benefit including dura¬
tion, auto workers last year prob¬
ably
had
to
stand
themselves
three-quarters of their wage loss
from unemployment.

a

reasons

pressure

forth, I expect

(2)

wage

been

the

For

the

\

our

befuddled

price and wage inflation,

(1)

collective bargaining.
For these reasons—and I include

almost four years.

indulgence.

your

now

July, the important economic
will
be:
(1)
net

will

Richard Allen Lester

largely because

has

a

Although

between

profits for

trends

that

negotiations

considerations

important de¬
velop ments
and

electrical equipment will oc¬

and

annual

teed

pre¬

Spring and Summer
will have the greatest bearing on
industrial relations this year, for
that is when the big negotiations
in autos, steel, glass, aluminum,

remarks

some

conditions

this

vailing

nomic outlook
1m

prospects for
economic situation in

economic

unfor¬

the

big

the

part,

guaranteed annual wage and
pattern that

In

The

thinking

this

in

that

1956.

eco¬

arrived at

result

hole in this dike would
court unpopularity in management

we

critical

highest

reduction, and (4) the 1939 change

opens

shall work out of
these trouble spots or they will
not reach a climax in 1955.
The

a

involve

will

the

might spread widely in one form
or another.
The management that

be worried about the

consideration

have

WTe
tunate

that would originate a

Administration ought, however, to

next

That

year.

have

ratio of benefits to normal pay.

the

is evident.

Perhaps

to malinger

ly

Thursday, March 24, 1955

.

legislatures explain
on
negotiations.

loss in

wage

states including Michigan.
In other words, those most like¬

auto

point where the fever of specula¬
tion

their

of

to

some

of

circles.
This talk will have both a short-

nine-tenths

paid

up

cept anything that can be labelled

and associations.

top companies

compensated

get

firms will be most reluctant to ac¬

increasing cooperation between unions and manage¬
ment in

on

workers

competition in unemployment tax

their

For

further reduc¬
along with addilional centraliza¬

of strike weapon,

use

tion and

start

plan is ob¬

tained in negotiations.

wage.

ing by European experience, we can expect some
tions in

limited

a

annual employment

an

Expresses prefer¬
ence for a single public
system cf unemployment compensa¬
tion to a guaranteed annual wage. As to a long-term view of
the future of industrial relations, Prof. Lester asserts that judg¬
labor unions for

unless

Motors

relations, particularly the demands of

industrial

current

On the other hand, the lowest

..

The

into

percentage

new

The

areas.

of organized

workers

national or regional bar¬
gaining is lower now than it was
prior to World War II.
A recent
survey by
Relations

the Princeton Industrial
Section

indicates

that

union leaders have increased their

support
and

for

have

thusiasm

for

than

the

was

years

company bargaining
interest and en-,

less

national
case

15

bargaining

or

even

five

ago.

During the past decade, union
organization has not expanded as
rapidly as has the nation's labor
force.

Organized labor today is
sightly smaller fraction of all
employees that it was at the end
a

of

World

War

II,

some

10

years

itiative to work his way up gets,

in ago.
Relatively, labor organizaparticular, have greater power at .tion has been losing out, as union¬
the bargaining table than
ization of new areas proves diffi¬
they

say, one-quarter compensation for
his wage loss when unemployed.

state

The

better-paid

man

with the in¬

unions,

and

the

UAW

or

benefit levels at

legislatures.

Defeats at the

have influence

cult.

Moreover,

strikes

have

been

i-

Number 5414

181

Volume

changing

in

.

.

and

character

The Commercial and Financial Chronicle

sig¬

With

nificance.

tional

.

increasing na¬
and the establish¬

income

rights and security,
strikes have become less a form of.
ment of union

and

warfare

industrial

more

a

implementing collective
bargaining.
And there are even
of

means

More and

lective
tentous
and

on

col¬

bargaining is another por¬
development in England

the

Scandinavian

Partly such controls

countries.

it has in a number
countries in the past

two

Changes in the industrial rela¬
tions

and

policies

of

practices

American management in the last

decades

two

generally

have,

speaking, been as noteworthy and
great as the changes in unions.

as

Unfortunately,
has

relations

careful

no

made

been

study

drift.

offer

At

that
later

a

in

we

strongly

point,

concrete

of

about

their

which

payments,

bal¬

fortu¬

control and

countries

decades
curred

semi-compulsory

even

those

in

during

has, to
also

in

the

European
past

two

extent, oc¬
country. Our

some

this

They indicate,
that

gers

sug¬

come

increasingly

detailed

and

regulative.

the

do

it

settling-down

American

stage

a

labor

of

present

that labor
in

and

some

manage¬

cases

may

of the community, and (2)
that unions may become too busi¬

is

nesslike—administrative
influenced

too

much

agencies

by financial

considerations.
In

kind of institutional and

our

economic

movement

trol,

consolidation.

setting, hierarchical

with

repression

racketeering, is

Rapidly it is being integrated into

in trade unionism

cern

middle-class pattern of life.
In
the absence of a crisis, little rea¬
a

and

relations.

Witness

the

con¬
even

for

cause

a

Reconciliation of Short- and

Long-Run

Undoubtedly

and

con¬

labor

recent

in

development

the

marked

evident

been

to

ciled
of

lished

To

No

like

have

has

resulted

AT THE GAUGE PLANT

SELLERSVILLE, PENH.
United States Gauges

directions

or

PRODUCTS: Pressure, tern-

the

during

of

in

such

much

programs

training,

more

sultation

between

agement,

and

levels

ling and benefits.
and the

form

industrial thermometers; flow

application

of

management

the

facts.

Above

all,

section

large

a

of

American management is now op¬

erating

the

on

problem-solving

gauges;

brake gauges;

welding
voltmeters.

ammeters;

gauges;

Gotham Instruments
PRODUCTS: Pressure, tern'

American Machine

and time detcrmin'
instruments for indica'
recording as well as

perature

ing

tion and

controlling industrial

and

policies and more objective pro¬
cedures for getting decisions based
on

inspectors'

precision
laboratory
test
gauges; marine, ship and air'

man¬

The agreement

gauges;

meters;

con¬

grivance procedure under
brought about more uni¬

have

it

of

con'

gauges; chcmi'
boiler gauges;
mercury, gas and vapor dial'
thermometers; glass tube and

cal

foreman

employees counsel¬

absolute

trols; altitude

ex¬

istration, communication and

as

aircraft in'
volume

air

struments;

application
as

flow-sensitive

such

gauges;

pressure

and salary admin¬

wage

and

perature

instruments

Metals,

processes

the chemical petro-chemical, textile,
rubber, food,
beverage
and
many
other
in

inc.

processing and manufacturing
industries.

Reports Best Earnings
in its 25 Year History

Autobar Dispenser Systems
PRODUCTS:Patented liquor,

devices

dispensing

assuring

uniform

and

accurate

pour'

existence of

quality
safeguarding,
sales recording and inven'
tory control for restaurant,
tavern, hotel and
club bars

derstand them,

pensing establishments.

approach to labor relations, which
means

using the

union

as

in

ucation

the

channel of

a

communication and

employee ed¬

facts

of

the

busi¬

ness.

The

of institutional

process

ac¬

has

commodation

frequently led
to a considerable degree of co¬
operation between the leaders on
both sides despite
and

terest

conflicts of in¬

differences

in

institu¬

tional goals.
No

be

can

one

how far this

sure

tendency will progress over the
next decade, but that it has al¬
ready moved

considerable

a

dis¬

tance in much of American indus¬

try since the

mid-thirties is

cer¬

likelihood

The

tion, at least to

continua¬

extent,

some

seems

by European ex¬
especially in England

periences,
and

its

of

indicated

be

Scandinavian

the

which

are

closest

countries,

to

our

back¬

ground and traditions in labor

re¬

Admittedly, it is hazardous to
project future industrial relations
the

basis

of

developments

abroad, because of marked differ¬
ences
in setting and conditions.
Nevertheless, in
pects
in

we

some

opments,

Despite reduced sales volume, the Company
earned $4.27 per share—the highest net
earnings since its organization a quarter of
a
century ago. Contributing factors to these
record earnings were removal of excess
profits tax and improvement of operating
procedures. Over the 25 year period, sales
have risen from aa average of $3,000,000 in
the thirties, to $13,000,000 in the forties, to
$25,000,000 in the first half of the present

number of

a

res¬

have tended to follow,
degree, European devel¬
with a lag of two or

three decades.

EAST MOLINE, ILLINOIS

PRODUCTS: Both batch and
continuous

pharmaceutical, textile, metal
working, food stuffs, bevcr'
age making and many other
processing industries.

Niagara Filters
PRODUCTS: Horizontal and

paid on the
stock for thirteen consecutive years.

were

distributed

capital
In the

additional extra dividends

NIAGARA FILTERS meet

the

WM'

>': L

vertical
.

varying conditions of factories and refineries

throughout the world.

of the year.

ucts,

It enjoys a sound and vigorous leader¬
a sensible diversification of its prod¬
an intensive
research and product

development activity aimed at continuing
product superiority, and the most modern
manufacturing facilities and production
techniques.
On the basis of this present

strength and its

past accomplishments, American Machine
and Metals faces the future—with whatever
difficulties it may bring, and whatever
mands it may make—with confidence.

de¬

RESULTS OF OPERATIONS FOR 1954-1953
OPERATING RESULTS

$24,615,272

Sales.

$32,148,682

Earned before income tax
and

3,616,751

Net per

5,486,079

1,495,451

renegotiation

1,429,079

4.27

Dividends per

Shares of

4.08

2.10

share..

1.60

outstanding

350,000

350,000

*

reduction in

tween unions and

$12,462,438

$13,720,059

4,382,751

6,113,302

8,079,687

7,606,757

23.08

21.73

9,314,444

per

8,553,993

26.61

24.44

share.

Equity

share

Riehle Testing

Machines
Testing

and

accessory

mentation for scientific

ma¬

instru¬
deter-

physical char'

of

materials

of

manufactur¬

hardness,
ability to
withstand impact and resist'
ing

—

to

ance

torsion,

tension,

crushing and bending forces.
Widely employed in cngi'
neering, industrial, govern'
mental

technical

and

school

laboratories.

Troy Laundry Machinery
dry¬
pressing, and
folding machines

The

CIO

or

merger

into

freezing

of

serve

to

at

present

automatic

the

AFL

the

a

bottom,

local
is

linen

AMERICAN MACHINE

pleased to send

annual report upon

our

complete

request.

AND METALS, INC.

held in
name

all

share




Woolworth Building, New

being

a

of

future

a

name, or in a nominee
have copies of
and other information for
them, including the annual report for

brokerage firm's
bank

or trust

reports,

owners sent

company—m3y

statements
to

1954, by written request to have their names placed on our
special mailing list for that purpose. Address American
Machine and Metals, Inc., Sec. M, 233 Broadway, New

York 7, N. Y.
25th Annual

Report

York 7, N. Y.

laundries,

hotels, hos¬

suppliers,

pitals, ship laundries, motel
and neighborhood laundries,
and private and public insti¬
tution

of American Machine and Metals stock-

Owners

union

number of ways.

commercial

for

We will be

hamper fer¬

Discipline

strengthened in

associa¬

single federation

a

rebellion

affiliations.

or

ironing,

ing,

management at

in companies

top

will further

by

also

acteristics

Current Assets

the use of the strike

additional centralization,
increasing cooperation
be¬

ment

in

commercial

PRODUCTS: Washing,

weapon,

tions.

impurities

mination of the

by European experi¬
ence, we can expect some further

and

industrial
plants and
for dairy
barn and poultry house ven¬
tilation and other agricul¬
tural applications.
ic

buildings,

construction and

)

Judging

the

humidity and the removal of
odors, fumes and atmosphcr-

chines

FINANCIAL PROGRESS

Net Worth per

temperature

PRODUCTS:

share

capital stock

Shareowners'

President

the
and

of

and

Net Profit

Working Capital

Mm

ven'

for

equipment

control

policies.

and

the

and

liquids,

tilating

Working Capital

ion and management attitudes and

agglomeration

solids

PRODUCTS: Fans and

1953

1954

Current Liabilities

That has been true

in the area of social insurance,
and, with less definiteness, in un¬

the

valuable

De Bothezat Fans

company stands in the strongest
financial and operational position of its his¬
tory.

for

tries;
of

in the third and final quar¬

leaf filter'

pressure

ing equipment for the chcm»
ical and
processing indus-

clarification of

Today the

ship,

of ccntrif'

types

ugal dehydrating and clari¬
fying machines for chemical,

-

Dividends have been

two years

liquor dis'

Tolhurst Centrifugals

-

past

retail

other

AT THE MACHINERY PLANT

decade.

its

1

lations.

on

and

ters

tainly clear.

to

ing,

accommodating itself to the
unions, trying to un¬
and, in some cases,

laundries.

AT THE MINING PROPERTIES

PHILIPSBURG, MONTANA

Trout Mining Division
PRODUCTS:

Mining

and

concentration of dioxide man¬

carbonate manganese,
and
zinc, lead and silver
bearing ores.

ganese,

seem

page

Products

estab¬

intensive

and

on

Divisions and

who

guar¬

for entering

wedge

man¬

years.

tensive

may

Continued

de¬

Scientific manage¬
ment, personnel management and
welfare programs and the human
relations approach were all in ex¬
istence and in practice by 1935.
However, widespread unionism

past 20

union

wage

Conference

uncovered

been

a

annual

Indus¬

approaches

new

toward

accommodation

officials, the

company

anteed

1931.

in

trend

and

in American labor relations.

Princeton

Relations

trial

bureaucratic

consolidation

changes have

anyone

annual

our

wondering

integrated with the notion

or

a

has
attended management conferences,
like

View

you are

how current demands for the guar¬
anteed annual wage can be recon¬

agement during the period. Never¬
theless

the New

on

waterfront.

trends

pense

turbing event like another world
interrupts the whole process.
in

in

see

leaders

war

The

Teamster's union and
York

along too well at the topthat they make "deals" at the ex¬

to me,

process

(1)

I

27

velopments and disclosures in the

get

they point?

seems

that

ment

likely to continue during the next
decade, unless some highly dis¬

is
labor relations legislation has be¬

direction

reversal

Paradoxically perhaps, two dan¬

gestions.

what

any

that development.

are:

some

In

countries

exists to expect

son

of

re¬

industrial

the

of

should

those

arbitration

decades.

that

shall

I

conviction

long-run developments add up to?

nately does not trouble us.
The
drift
toward
government

as

my

country

bargaining arise from worries in

is

importance

sist

is

What do these brief remarks on

ance

of European

this

collective

on

indications that the strike weapon

beginning to decline in relative

It

government in¬

more

tervention and restrictions

(1391)

28

\

28

The Commercial and Financial Chronicle

(1392)

Continued

jrom

subjects tends to poison such re¬
lations and to make into political

27

page

issues between labor and manage¬
ment matters that

Industrial Relations in
The Economic Outlook

tells us a Actually, today the law has little
lot about the present state of the significant effect on the bulk of
labor movement and labor-man- union-management relations
in
agement relations in America in this country.
I suggest that the time may be
the year 1955.

such matters
production scheduling, plant loand expansion, sales and

joint determination
cation

price policies, and even industrywide

planning? And wouldn't the
suggested
reinsurance
of
such
plans bring the government into
the detailed operation of business?

lessening

tional

and

about

ficials

jg

greater

a

how

remarks

one

can

add

have have made about

I

How can it be said that

strikes?
the

reduced

significance and yet,
breath, utter-

in almost the same

is

ance

that

given

the

to

think

may

lost due

than last year,
that my long
high level of

to strikes this year

You

expectation
be

will

time

more

such a
observation or abstraction that it
is

view

at

elethe very
tops of the trees. Isn't the picture
quite
different
if
the
lower
misses

too

significant

many

ments—that it only sees

branches and the underbrush

are

think

don't

I

Day-to-day

so.

tentative

my

Even

.

.

used for the revision of

one

the Social Security Act in
an^ again in 1951.

1939

An Advisory

spon-

sored by the Hearst Newspapers,
which made a number of recomim- mendations that later appeared in

ice, it might be worth-

while to indicate

briefly some
pijcations of my remarks for labor
reiaR0ns legislation. In that way,
you may gain a better idea of the
direction

in

which

analysis

my

p0ints
Wagner Act and the Taft-

Hartley Act
a

both

were

passed in

Qpjgjg atmosphere—at times of a

marked

swing in

^ .g nQ^

surprising, therefore, that,

wRk

the

seemed

public opinion.
of

passage

time,

extreme

in

the

revisions of the Social
Security Act.
.

ion-management relations, but the

accommodation seems
increasing its range

of

have been

to

in Massachusetts the
That sort of

they
some

offers

the

same

of effectiveness.
Of

tyrant, racketeering sort,

and there are still unreconstructed

managements. We must, however,

nuni/mvnmo
avoid myopia

nr

o

warnpH

vipw

or a warped view
from concentration on the

arising

shady activities or the abnormal
that

cases

make

newspaper copy.

Despite all the heat and emotion surrounding the guaranteed

-

.

.

,

that
trial

will

unemployment compensation
without

introduced

be

any

invasion of management
decide

new

rights to

production, price, and capi¬

in
inie
investment.

r
tal

,

have

protested

nvrtnm'votinnc

protective
would

they

some

loss
a

Thpv

^

their

lose

—and

sumed

arncA

arose

union ;

thrived,as

+•

+

nninne

that

Remember
and

in

policies, and in
iabor-management relations.
rpQ
somewhat more specific,

P^est
to^hav t
already
if
seem

ey

points

oug

encourage

which

kind

seek

members

union
of

protection.
With respect to the volume and
incidence of strikes this year, I
some

but probably they
temporarily.
Any new

could be wrong,

rise

will

development tends to increase the

in

manage-

ments to fight unions or to

chal-

jenge their representativeness,
That

does

j

*

*

not

al absence

individuals

to

^

lu
tQ

firm*
firms

coercion. Such

is

the

Rhett du

on

necessary

firm

"v.-

l

P.

Francis
offices

our

fact

is

consideration.

serious
worth

some

That

of

demands

may

uy btdtuic in me
p]aced by statute in the ^

statutory encouragement to

g g

isn't

it

significant

that

now

be
we

hard put to conceive of what

form

such

a

new

type of demand

might take?

rights

"

fornia

counterparts here.

national labor relations law

should^ emphasize self-settlement
tbro"fh collective bargaining It
settlements suitable to

Federal statute,

a

should

the

national

relations law be used
for

attack

an

as

a

labor

vehicle

on

Communism, on
types of political contributions, on
racketeering,
or
on
improper
handling of pension and welfare
funds, or similar items not pe-

culiar to labor relations.

that

sort

ought to

be

Abuses

treated

Attempting to make labor rela-

Codetermination is contrary to our

tions

union traditions and thinking, and

fair of all kinds of miscellaneous




&

Co., has
country

the

Coast

legislation

an

still

in

full

control

intermediate and

few and far between and

obligations

demand

have

the

government

less easy price

or

limits.

long-term issues

for the time

sources

plenty of

Market

market

bond

omnibus

downtrend

g

.

offices

buyers

and

located

are

Beverly

Los

in

Hills,

Pasa-

market,

The

in

Lucien

31

31, Raymond A. Mcof

the

New

York

Exchange, will retire from
partnership in Dammes, Koerner
& McMann, 36 Wall Street, New
York City, members of the New
York

Stock
1

Exchange,

the

firm

and

name

af-

took

place

of government securities,

seems

(Special to The Financial Chronicle)

the government market
discounted
the

means

not

future

has,

action

here

monetary

from

offices

at

Boulevard.

market

money

believe, pretty well

as

been

in

Ave"ul

n

L

F

ef at

in

not

distant

too

though

even

evident

the

be.

Until there

decreasing

of

are

more

the

E.

R'

Bishop,

933

EagS

L

the

March 13.

still

are

looking for

of the

some

might

economy

future, there

positive results

intensity

of

In

the Hands

be

excesses

cured

still

are

or

others

these

as

to the

clearing

maladjustments,

it

up

is

or

not

of "Professionals"

Because the government
cies

and

now

ing

a

then, it

seems

market

has shown

tutional

a

rallying tenden¬

though investors should be show¬

as

greater interest in these obligations.

has been

It is evident that there

minor expansion in the buying interest of certain
insti¬

investors,

but

this

has

not

yet been

important

enough,

the trend

upon

of quotations.

Accordingly, the price changes,
narrow

range, have been and still

up

and down in

followings

in

successful,

which

is

certain, issues

that

means

to

up

still content to stay

now

the

on

relatively

a

being brought about by the

are

so-called "professional" element in the market.

have

Attempts to gain
not

investment

proved

to

community

be

as

the side lines to watch and

a

see

developes.

Discount Rate Rumors Persist
The
and

is

of

rumors

change in the discount rate have been hot

a

heavy and these

under

credit

However, it

are

to be expected when the money market

limiting operations of the

seems

that the powers that be
economy

monetary

authorities.

though the testimony of Federal Reserve

as

Board Chairman Martin before the
are

well

Fulbright Committee indicates

aware

of what is

going

in the

on

and will continue to take steps to remedy the situation.

Nonetheless, it

appears

as

though whatever

measures

taken

are

will be well deliberated and will not be of the
bull in the china
closet

variety.

It

seems

powers that

though

as

considerable

has

been

direct

methods

give the

same

type of action do, such
other

ways

in

which

seems

of them if

have

early

fall

been

over

relegated

Changes in

in

away

the

credit

limiting

can

be

There

done

the

more

back¬

require¬

reserve

market operations.

as

other

are

with

also

more

evident the powers that be will make
greater

believed by most mohey market specialists that
a

deterioration of business after the
mid-year

there will be

a

very

quick

reversal

in

monetary

policy, with active ease again being the order of the day.
The offering of $3 billion of 1%% Tax
Anticipation Certifi¬
cates, maturing June 22, 1955 and payable for

partner

and the

to

flexibility to monetary policy

as open

by

Indirect

they should be needed.

if there should be
or

learned

be since the inopportune happenings of 1953.

ments do not

June

Morgan Davis & Co. passed
on

no

expected that the monetary authorities will do anything but
keep

It is strongly

UaKes L,. tSlsnop

Oakes

by

which have not yet responded to the treatment of
the powers that

coollT.;+iot?

_

is

whole yet, since

a

Treasury market before its troubles will

being pointed out that

have

eliminated

use

Calif. —Robert H.

from off

in

over.

which

(Special to The Financial Chronicle)

Sess

there

construed

authorities

few of the operators in these securities

a

lower quotations in the
be

the

ground for the time being at least.

Hough Opens

ALAMEDA,

and

to have been

as some appear to

of

of the

consensus

finesse and it

R. H.

a

some

cumbersome

OAKLAND, Calif.—Frances R.
Anderson is engaging in a secu-

business

equity

quarters of the financial district as an early
sign of the
petering out of the decline in price of these obligations. Whether

be

Opens Inv. Office

Foothill

the

Treasury obligations.

methods of credit control appear to have taken

2351

in

the government

upon

on

will

changed to Dammes & Koerner.

rities

this

though it is still too early to indicate that

even

Brown-

of the New York Stock Exchange,

member

in

still around.

are

Improved

which

salutary effect

a

is

The short-

change

no

betterment, which has been evident

quotatibns

what

Oppenheimer Admits
March

to have had

seems

Tone

prices

bottom has been carved out for quotations of

whole

On

in

rather

are

being.

is looked for while all the uncertainties

The

happening

pick-up in demand for these issues

no

expected from important
term

of

more

t^oth directions, within restricted

Buyers of the

branches

stock

in

is

the

It is evident that the so-called

according to reports, to have very much influence

dena and Bakersfield.

in this country have been maturinS and will continue to mature,

of

no

Pacific

On March

in separate state or national legtermination, for example, realizes islation or by amendment to existthat it arose out of the very pe- ing
statutes dealing with such
culiar circumstances in Germany subjects.
have

Pont

du

throughout

Angeles,

jyjann

our

movements in

or

Anyone who has studied code-

which

I.

the

.as I believe, labor relations

.

Nor

pressed in the years to come. But
are

"'.V'

threat to en" To Be Dammes & Koerner

emphasis.

ingenuity of union leaders,
of course, is not limited, and other
types

^

Exchange

to

or

The

new

i

a

by
Cornelius
Cole,
II,
Resident Manager Southern Cali-

their own peculiar circumstances
better
company
unemployment and not try to make all settlebenefts—is, however, the only big ments conform to a set of detailed
development left that now merits Procrustean provisions, embedded
—

t

headed

both sides. But it does
emp)oyer ought not

firm>/bargaining

element

There¬

confronting

change from what has been

mem-

the Los Angeles Stock
according

Phelan.

work out

employment

4v.

in

&

Lxcbange Vice-President Thomas
according to Exchange
Executive

without

strike.

•

bership

should give the parties latitude to April

a

Francis I. du Pont

admitted "to"

Excha:[ce

difficulty of achieving settlements
Guaranteed

of

ptT xl'"

t„

pAc'ucu

a

of

securities.

are

seem as though there

market and this appears to account for the

Pont, representing

sition of legal guardian of union stone will become a partner in
members' rights vis-a-viz union Oppenheimer & Co., 25 Broad
leadership, or that unions should Street, New York City, members
stifle

professional

which

jesolved, it does not

great deal

a

government

uncertainties

the pressure on the money markets.

full rights and fair bar-

fhat

ue

or

protection

assure

gaining

imply
protection of

individual

or

from domination

statutory

of

A.

with

to

mean

against which workers protest and
from

conflict

eApe'-L tcuuLcu tumnu
relations, our
legislation should, facilitate "acCOmmodation" and pot at numeriab0r-management

h

sigmfijant part o.the

reduced

expect

,

,

be

the

recently in the treasury market.

of L. A. Stock Exch,

unionism,

American

management

I suspect
form ui supplementary
luun
of

burnt;
some

A. R. du Pont Member

pagj. trends and anticipated devel-

demand,

employment

the long run. That
legislative stress on

on

mean

opments

there are abuses of

course,

the petty

will

of

some

have been

economy

It is

technique certainly
hope for escape

respects and soon a number of
Rigjj. provisions became out-dated,

wouid

baffling to those that operate in
fore, until

year.

best
,

but is based

money

,

somewhat similar function
was performed by the so-called
Slichter Labor-Management Cornmittee, appointed by the Governor
of Massachusetts in 1947. Its report served as the basis for new
(abor relations legislation enacted
^

from the kinds of political im—
relations in the plant have, genpasses that national labor relaerally speaking, improved considMy pjea wouid be for labor re- tion.s legislation has suffered from
erably since the 1930 s.
True, jaHons legislation that is focussed during the past two decades,
changes create problems for un- noj.
merely Gn current conditions
process

markets continue to back and fill, because the
dilemma which confronts the
monetary authorities is also just as

though I have been skat-

thin

The"

.

^

The technique I have in mind is

Social Security Committee,

each

included?

of

some

,

ports, was appointed by the Senate
to offer advice to its Finance
Committee in acting on amendmerits to the law.
Back in 1937^ I was a member
°f ? purely private non-partisan

conclusions.

destined

strike weapon seems

for

for

dence

The

Council, largely composed of ex-

the lines are distorted.
j rea<dily admit that it may be diffjcult to marshall convincing evi—

the

up

group

a

the

think that

may

labor

our

rela-

sketch
labor

our

You

of

many

production and cost decisions?
And

outlines of

Rons picture.

experts.

insuf-

That, too often,

fresh look at
legislation by

By JOHN T. CHIPPENDALE, JR.
*

heavily weighted by non-partisan

drawing

from

have attempted to

j^j-oad

on

to

of

art

^ask jn industrial relations.

our

j

observed

once

tj)e

ig

ficient premises."

the part of union ofshare responsibility for

hesitancy

»life

suffjcient conclusions

union interest in naregional bargaining or

statements

with

Butler

Samuel

that

a

relations

Implications for Labor Legislation

How, one may ask, can the guaranteeded employment demand be
harmonized with statements about
a

ripe for

VI

Governments

on

can

we

legislating
only
on
the
swings in public opinion and can
reduce the element of political
partisanship in the revision of
our national labor relations law.

it seems to me,

zons,

Reporter

stage of de¬

velopment, I hope, where

arouses .no interest in
union
circles in this country.
The absence of any new hori-

ing into collective bargaining and
as

a

avoid

it

management

of

areas

new

decision-making. Wouldn't unions
seek to use it as a means of bring-

Our

properly should

not be in conflict between them.

We have reached

into

Thursday, March 24, 1955

...

15,

1955, as in line with expectations.

income

The

recently indicated that an offering of tax certificates
works.

taxes

on

Treasury had
was

in the

w./I

Volume

181

Number 5414

.

.

The Commercial and Financial Chronicle

.

29

(1393)

Uranium Ore Developments in
Securities Salesman's Corner
The Algoma District of Canada
By JOHN DUTTON

By PAUL E. YOUNG*

What Makes A Successful
Sales
.

The

other

with

day

of

one

I

the

large New York
member

firm.

ing

him

to

much

a

tive

I

Stock

his

on

position

made

the

his

a

New

discoveries in the
successful
where

execu-

organization,
that

I

able

be

to

either

their

lems of

partners of the probsales organization. He
me
for my kind words

ms

thanked
and

then

way

he

we

can

do

ever

salesmen
tatives.

and

big,
always
them

of

salesmen

children,

partners

and

investment

execu-

firms

rather flippant

jf yOU want to build

ganization, start

They

own.

salesmen in

the

ness

opportunists,

are

and

in

necessary

evil

that

since

business.

good

investment

spenders,

a

busi-

do

sales

a

few

or-

top

them

you

are

helping

Weed

up

out

weak

You don't keep
incomemployees in your other
departments either. But no busi-

stayed

got

there

without

partment that
PORTAN'T

the

to

top

and

sales

a

JUST

was

IN

de-

AS

IM-

EYES

THE

OF

MANAGEMENT, as the buying,
clerical, financing, planning, or the
A

,

.

f

rfon-rtrXf

thp ^
Lrtmp H

Parimenl*
Ul

DIEGO, Calif.—On April
Wesley Hall will be admitted
to
partnership
in
William
R.
poison working on the morale and
the"lovaitv of'ewrvStaats & Co., members of the New
in

busL7sS f™

develonine

goino

build

to

loyal

a

dustrious"

energetic,
aggressive sales

and

if you even

the

that

organization,
in

competent

department

unconsciously

attitude

whole

as

If

person.

you

hoxrA
bave

difficulty
and
loyal

producers

(Special to The Financial Chronicle)

and

in

recruiting

personnel,

more such men.

Salesmen Go
Are

is

J

Co., Union
Commerce Building, members of

the Midwest Stock Exchange.

Where They

wac

nrevinuclv

ofTreen 1X1

Mr.

Trpacnrpr

Green, ErD & Co.

Happy

who has the spunk
and the gumption to work on a
commission has pride in his own
He

around

m

is

not

going

office

an

to

sit

where

this

as

attract

Men

same high resolves.
They
that all people who have the

desire

to

pression

lead

are

way

they

Men

who

lives

ANGELES,

they

for

Lake

been blasted
earlier,
and
the

some

owing

oxidation,

to

the

that

I

of

this

whole,

they

of

the

at

surface

strong

radioactivity

over

iarge

a

?

firm

was

the

begin-

expres¬

firm

couldn't

as

a

time than it would take for

me

to

find another firm that didn't look

I

in

known

the

lot

a

of them have been

could

not

be

tent,%r successful.
'

.

is

certain.

of

investment

during the past 30

sure

Co..

Michael

—

„

Those

business

Some

years.
men

that I

loyal,
But

sales¬

am

compe-

one

7

who have




thing

&

been

years

was

much

the

mineral

almost

not

uncom¬

pebble

a

content

completely

the

of

ore

confined

-

.

chalcophyrite, galena, molybedenite, rutile, anatase, scheelite, cobaltite, magnetite and gold.
The
uranium
bearing
minerals
are

rhotite constitutes from 3 to

lo%

0f the

ore

about

5%; all the other minerals

named

by weight and averages

are

sparsely

very

dis-

tributed.
The maritecj
fh

,

similarity between

fh

AlfrorTia

nistrirt

those of the South African

and
R

.

,

Africa^
Aincan

wnrthv

f

nntp

Tn

thp

lave?

occurrences a thick layer
a inicx

occurrences

of late pre-Cambrian sediments
known as the Witwatersiand for-

Algoma
The

main

^

Y

J-

formations

rock

from a few inches to

.

normal

of

,

,

sampled

by
mnn

interest, and the

explanation

basement

pre-Huronian

A

floor

which

uoon

the

7

-

groups

rest.

This

is

younger

J

that

was

H

with

2757

anci related rock

ronian
ivine
DOn

argillite

and arkoses.

succession

thick

A

unconformity

nrofound

tue

Hu-

formations

sedimentary
in

of

Dre-Huronian

basement

nuronian Dasemem

p

sedimentaries

are

mainly

Franc

therefore,

Joubin

of

32nd

(3)
.
*

a series of basic
form

Qf

dykes '
»

showing

Mich.

—

Co.,

15315

Nichol's Road"

West

Mc-

far

u

the

to

was

uranium

exposures,

the

out

on

values
of

the

that

the

surface

was

and

presence

'

of

uranium

enough below surface that it
not included in samples cut

Mr.

«i

With Hamilton

gram

Management
tion, 445 Grant Street.

Corpora-

in the pyritized conglomerate bed.
Credit

for

of

the

one

Forms C. G. Coit Co.
(Special to The Financial Chronicle)
poiif

BERKELEY, Calif.—Charles p
G.
Coit is engaging in a securities

^^enue°f 0^^ the''ton
G

Pmt

immediately successful

of

F.

ment

Pharlpc

was

in establishing the presence of
uranium in commercial quantities

Colo. —Daniel
Douglass has joined the staff
Hamilton

Joseph Hirshhorn backed
this theory with funds to start

3
program
of
exploration
by
diamond drilling. The drilling pro-

■mm

Mgemt.

DENVER,

uttrprft tpv

m

fhe

during

from the surface.

up
iit.-i

Sr

rnm-

name Ot unaries G. UOlt & com-

conglomerate

mined principally for
the Rand was recog-

and

nized as the greatest gold
in the world. It was not
that it

1923
.

became

...

uranium

orri,r

aid

occur

and

JrVe^Tlar'ma^er^hrch^'cut The

'T^ mc^fSmat^ns
roc* lormauons.

the lower member of

,

l

1.

1

of

the

the

early

Algoma
greatest,

develop¬

District

if

not

greatest uranium producing

as

Even

the most critical

would

be

market

similarity

impressed
in

Continued

on

If.

Holmes and R. Benner, presented at the
and

including a wholly-owned subsidiary
Company Limited and the

Tinto

undersigned.
The

undersigned initialed the negotiations lead¬

ing to the formation of the

group

which carried

out the transactions.

Developers Association,
Toronto, Canada, March 8, 1955.

MODEL, ROLAND & STONE
Alembers

120

BROADWAY

observer

by

the

Qf the congiomerate samples from

the Huron-

the

in ^he World, goes to Franc Joubin

Prospectors

Rio

ill

appearance

camps

and Joe Hirshhorn, Joubin for the
technical phase and Hirshhorn for

jW.

group,

i

1945.

has been executed, under the terms of
approximately $41 million will be provided to
bring the properties of Algom Uranium Mines
Limited into production. The financing includes a
hank loan in the principal amount of $15 million
and $25 million principal amount of 5% Secured
Debentures due December 31, 1961 placed privately
a

the

tne

as a

importance of the gold seams of
the Rand as a potential source of
uranium was not recognized until

which

The

that

within

An agreement

with

until

wiinin

Algom Uranium Mines Limited

of

camp

known

in

lnw°r^«

leached

been

due

I.

Rantala has become affiliated with
&

that

high radioactivity

Eugene

this

1868

been

g°ld,

samples,
again re-

samples

joubinTaHevfloped
surface

(Special to The Financial Chronicle)

DETROIT,

Since
had

.

intrusives
sills '

py-

mineral associate of the gold. The

anH associated rock
and assnojated rock tvnes.
typesi

by
little

re-examined

TJS. "
interim

Joins Ashton Co. Staff

nf

these

quartz,

u

rlte*

ing amounts of schists, andesites,
(2)

,

latter well cemented by

of

turned low values in uranium, he

had

pany.

and,

Long Township

Mile High

West

Avenue,

name-

caused

was

of

+

granite
types, with vary-

comprised

greVwacke

few feet in

a

tbickness. The conglomeiate conslsts
ancient quartz pebble
cemented in a matrix

^ 'Quartzites, greywacke, argillites "reefs" (conglomerate beds)

f

,

and

0r

"i.

These

radioactive material
,

(1)

in-

T

Ridley have

it's salesmen "as children.'"

have

men

Colo

George'H.

me

longer

directed

men

The Geological Formations tn

present

was
u

examined

When

(Special to The Financial Chronicle)

keep
any

These

ject quite thoroughly.

surface,

and

area

8

*

the

0

the atti¬

and

working for them for

upon

DENVER
Gates and

Ashton

partner

that

besides

the sales de-

member

mentioned

of

sive

salesmen

things
in

the

they

....

organization

ning of this piece,
tude

feel

Top

was

of

to

30

rock

then leached and limonite stained.

too low to be

(special to the financial chronicle)

become affiliated

want

Superior. The pits

With Mile High Sees. 1953, and took further

1WO

Securities

ac-

are

represents

to
the chlorite-sericite matrix, which

belt, in a matter of just over two
months, starting in late May, 1953.
The geology and mineralogy of
the District will be described only
briefly here. Papers covering this
subject are under preparation for

dis-

11fnntnm

Calif.—Wil-

....

sales

other

partment
partme

.

accepted,

toward

of

If I

money.

....

socially

are

represent.

work

ex-

The

is

Mines

first

was

had

Mr.

about the

drive

part

a

self

This

on
up

beach of great antiquity.

Most of the known uranium
mineralization found in the area
Morgan & Co. 634 South Spring value. As a result, interest in the occurs with a quartz pebble conStreet, members of the Los An- showing waned, and the area was glomerate lying at or near the
geles Stock Exchange.
at a standstill until 1953.
base of the Mississagi quartzite,

concerned

complishment
are

of

Uranium

individuals.
Surprisingly,
Lnttrrxtrnv
iLn
nnnfnnf
however, the uranium content was

(Special to the financial chronicle)

LOS

of

covery. The

Two With Morgan

who

have the
say

north

many

such

men

other

the

conglomerate in some
ni^ nac s„ T
loio
old pits in Long Township in 1949,
as
an
outgrowth of earlier prospecting activity along the east

thorium

firm.

along

in

covered

radioactivity

his

foot in size

one

mon.

size

average

inches, however
boulders

property

ment of r<?cKf S1j™jar
<L. ?°.s®
recognized in tne Algoma District

laton have become affiliated with

cf

to

two

or

Pronto

an

mation, overlies a primeval pase-

liam S. Hudson and Pearl M. Pel-

heads

one

the

with
abundant
pebbles are

The

with

oc-

the

associates, is not placed upon the
highest plane of appreciation by

of

pyrite.

sorted

curring
in
the
area
may
be
Nordic and many more, are serv- grouped
into
three
structural
iced by a road approximately 30 units quite distinct in age, and

things he is trying to do to build
lip his own future, and that of his

the

the others.

District uranium

Pronto

Co

man

worth.

of

Limited, lie along No. 17 Highway
and the Canadian Pacific Railway.
Other properties, such as Algom,
Consolidated
Den is on,
Lake

was

Every

development

located

cludin"

shore

'

Gannon

Good

well

chert

chlorite-

gritty

a

matrix,

visible

youngest:

on

this

try

ever

Algoma

well

occasional

and
in

of

brannerite, pitchblende, possibly
uraninite and thuocolite, in order
of abundance. Pyrite and/or pyr-

and

Radioactivity

CLEVELAND Ohio Raymond
surpUsed lf
%PaIJ.n?,n bas become associated
keeping top with Fulton, Reid &

salesmen

quartz,

pebbles

con¬

a

or

oyer try mis on
d?ar!men°F ^ou.*

sales

your

other department

any
ix

basement

Mr. Hall,
as
Archean or pre-Huroman.
member of the Los Angeles miles long, which was built dur- easily distinguished from one Within the Witwateisrand toimaanother
Hon occur thin bands of quartz
Stock
President of mg 1954.
These units are, from oldest to pebble
conglomerate varying
Wesley Hall & Co
First Discoveries

York Stock Exchange.

Raymond H. Gannon
With Fulton, Reid Go.

department

any

organization, is not just
important to the success of the

underlying the

district from early 1953 to present, staking of approximately 1,400
1 wil1. deal only briefly on the claims covering a strike length of
historical data, and will then dis- some 70 miles along the favorable

your

your

as

bed

one

the

on

t?ry

assume

in

anyone

or

in

1 C.

deposit the
as

the
of

embedded

iSl Presentation in.,|he nearfhlut"rhe;
these papers will cover the sub-

SAN

firm

Pronto
occurs

comprises about 35% of the conglomerate. The minerals present
are
pyrite
and/or
pyrrhotite,

Sudbury, Ontario. Some of the
properties under development, in-

Wm. R. Staats Ptnr.

idea sits

the

directly

sericite

,

U.II I- D.

C. W. Hall to Be

In

conglomerate

50

from

basement

the

above

articles, both technical the financing phase. Credit for the
and
non-technical,
have
been excellent way in which the prewritten during the past two years liminary staking job was carried
on various subjects pertaining to out
goes
to such men as Don
uranium occurrences in the Al- Smith, Harry Buckles, Bill Hutchgoma District. These articles have ison, Bob Hart, Roy Pountney,
described in some detail the his- Webb Cummings, Dit Holt and
„

sh°re of Lake Huron, about midp

in

not

been

Many

area

high

the minds of the heads of
any
it
trickles
down
into
the
sales
department.
It
is
like
a

wealth

new

rocks.

quartzite,

De¬

area.

Concludes, "seldom, if ever has so much
developed in Canadian mining as in the
Algoma District."

concerns.

The A1£°ma

generate

an

formations

'
" TVnp>v cuss more recent developments
l,, ui with which You may be less
J0" daYf' familiar.

ivory tower department.
TnwPn

developments in that

your

the

petent

ever

rock

main

are

sisters.

ness

of other

their

they

build

to

you

business.

way

of

aware

the

and

progress

the

historical data relating to uranium

recent

feet

conglom¬

occur

Lithologically
glomerate
consists

underground and construction programs of the Pronto and the
Algoma Uranium mining companies as well as the activities

to

tell

cases,
a
must be tol¬

they

a

with

detail,

some

100

may

rounded

district and notes the similarity between the ores of the
Algoma
districts and those of the South African Rand. Gives data of

work with them, listhem, understand their
problems, and don't be afraid to

ten

some

When such

scribes

went

Then

men>

er-

are

sort of belief that

some

erated

that

and

that salesmen

distinct breed of their

have

to

someone

along."

idea

roneous

our

represen-

how

need

are

hold this

about

overgrown

are, just

There

much

know

nurse

off-hand

I don t think

customer

You

they

tives

rather

a

in

remarked,

they

or

in

cusses,

efforts

to

beds

the Quirke

In

more

or

rocks.

Algoma mining district of Canada and dis¬

firm

a

and

in business for themselves,

York

better understanding to his

located

work

appreciated,

were

elevation

statement

hoped that he would
bring

a

Exchange

important

in

in

congratulat-

recent

more

talking

was

partners

After

Organization

erate

lying

Manager, Pronto Uranium Mines, Ltd.

Mr. Young presents the

ian sedimentaries.
Lake basin two

York Slock Exchange

NEW YORK 5

page

45

\

SO

The Commercial and Financial Chronicle

(1394)

...

Thursday, March 24, 1955

Dynamic Domicile of Enterprise Capitalism
Continued
is Bell
at last
on

from first

mushroom banks such

page

failure in

report). A favorite

both sides of the St.

will net

over

for investment

company

is another renowned

This

enterprise is

an

list of

almost

shares

every

new

consis¬

have

for

1955

should

well

carry

fine

by life insurance of

country in the world, has

in this field of finance—led off
writes

surance

Life

in force

now

has

at

below

Lincoln

long

a

to

number of other fine companies

Life,

Mutual

of

Canada

and

eration. While few insurance company

listed

on

Stock

Exchanges,

over-the-counter market
No Bank

is

run

for

ment it's

$70

on some
ounce.

an

a

a

find

Bill,

price below
producers.

a

participating preferred that

a

hybrid between

convertible

Belgian custom!)

Seaway

Canadian

notable
the

new

continued unabated with

Shield,

finds, especially at Blind River,

River

but greater pro¬
At the mo¬

saw

important finds on Consolidated

and National Lead

The

most

Deni-

properties.

important uranium news, however,

production contracts for Gunnar, Pronto,

the

and

pearl without price—increase!

Algom

—

contracts which so matured and

strengthened the corporation's finance in

Minerals

instance, that the issuance of

like

and

Oka, 43 miles from
only for cheese). Blind

geiger gaga crater at

Montreal (hitherto famous

son

crowd. The feverish

search, particularly at the edges of

radioactive
the

headlines in natural re¬

biggest

went to the uranium

sources

Serving American Institutions

each

debt securities was

possible for the first time. Gunnar

this, would be complete without some coverage

5's were over-

and Brokers

CANADIAN

STOCKS

BONDS

a

straight common. (Same sort of

used to finance Inland Cement—-

old

the

but

correction of price.

No Canadian comment, even a capsule one

no

a

1954, encouraged by the passage of the

glittering day, advance
When or if that golden

Oil, Natural Gas and Other

you

an

was

Canada

Here

years.

or

a

many

of

was

be

—

rising scale of earning with the com¬

Steep Rock and Labrador ores progressed in

motion¬

school of economists that believes the

a

duction awaits

Banking in Canada has been wonderfully and
professionally

$60

for

Incidentally, for market

Important Source of Uranium

price of gold for 21

an ounce,

costs

a

sort

—

security

has gone right along

ished metal since history began;

are

available.

Failures in

mon

on

preferred and

Yellowknife,
Dome, Hollinger. Gold has been the most cher¬

reasonably active

a

shares

rewarding than Kerr-Addison, Giant

Confed¬

shares

sort of vehicle

and

day for miners comes, few equities could be more

—

Manufacturers Life, Great Western, Canada Life,
London

still $35

gold price will,

Following Sun, in descending order of magni¬
are

—

production

There is

Sun assets total

today about $1.9 billion.

tude,

years

actual

S., and just

refinery

a new

technicians, Canadian Petrofina introduced a rare

must

less market in the official

few bugs remain

broad chain of service sta¬

a

the Provinces.

in

tions

Dallas, Texas group) to build a plant

in the economy,

a

Petrofina, Ltd., with

Montreal and

gold industry, perhaps the earliest extrac¬

area

reality, albeit

,

International

and

Edmonton,

at

line talked

past three years is coming closer

Significant, too, in the oil picture is the entry

25 million

without much forward motion due to the

$6 billion of life in¬

Life).

over

new

closer to

near

10%

lot of repressed be¬

Transcontinental gas

for the

of Canadian

postwar

Chilliwack, B. C.

tion

(on which basis it would rank

National

cement capacity is

plant

The

by Sun Life. Sun

above Connecticut General in the U.

American

Whereas

to uncap a

to be ironed out.

Belgian syndicate), building a new 800,000

a

the

and

capacity has doubled! Present annual

Cement (a

any

U. S., and was a pioneer in common stock invest¬
Sun

Then

some

plant increase is in the order of

barrel

extensively in both Canada and in the

ments.

shame.

serve

ground gas in Saskatchewan and Alberta.

about

including two newcomers, Inland Cement (backed

elite companies

some

Canada has

to

by

coverage

low

ingredients of any expanding
Naturally

arrangement for export of gas to the

an

U. S. should

Exchange listing.

an

barrels, led off by Canada Cement Company

Canada boasts

them in order.

capita

ply; and

has put their counterparts South of the

Canadian

$40

First, Canada which, I believe, boasts the high¬
est per

cement..

productive

on

provide the financial back¬

cement

four other billion dollar corporations. We'll com¬
ment

an

Border

million.
In addition to Canadian Pacific,

in

companies and their postwar expansion pro¬

gram

today.

beyond

is

nation

brought,

year

of the lowest cost aluminum in the world

Net

One of the basic

vast output potential

a

production at older fields have augmented sup¬

the country,

Canadian bank shares have

hydro-electric installation at Kitimat

production and offers

changing. New strikes at Pembina, and enlarged

efficient

over

In contrast with U. S. practice, most

economy.

investment trust

growth stocks, has in the past

its vast
into

on

big banks serving 4,000 towns and

skeptical

bone for the overall excellence of the Canadian

of the most dis¬

one

Aluminium, Ltd., whose

40% of petroleum needs, but this ratio is rapidly

network of branches,

earned $54

year

Canada still imports above

True,

flagged.

Scotch

and

dour

most

communities all

investor's favorite.

tently appeared

not

Ten

trustee.

tinguished developers of natural resources in the
world and

and

com¬

International

name,

Nickel, which for its last fiscal
million.

Maple Leaf terrain. Oil and natural gas have

year.

Actually the most profitable Canadian
pany

among

the

the

convince

$27 million this

ing

era.

dividend record that would soothe, reassure

Lawrence, Bell of Canada

the lush geological structures beneath

There has never been a bank

Canada, and the leading banks have a

in the 1930

omy

Telephone of Canada (with $842 million

of other vast and diverse minerals and ores lurk¬

plagued the U. S. econ¬

as

SECURITIES
We offer

Markets

in

maintained in all classes of Canadian external

Exchanges,

or

the Montreal and Toronto Stock

on

net New York markets quoted

DIRECT

PRIVATE

WINNIPEG,

WIRES

SYSTEM

TO

TORONTO,

VANCOUVER,

CALGARY,

BELL

TELETYPE

NY

on

and

request.

AND

Canadian

Affiliate

Company

W.C. Pilfield & Co., Inc.
Halifax

Saint John

Stock

American

40

EXCHANGE

Telephone

London, Eng.
Ottawa

Calgary




Canadian

Affiliate

and

——

Exchange

Member

Canadian

Stock

4-8161

Toronto,
Exchanges

Toronto
Montreal

Winnipeg
Montreal

Vancouver

Halifax

Toronto

BROAD
NEW

fcornwall

PLACE, NEW YORK 5
WHitehall

30

Winnipeg

Phone
Calgary
Edmonton

STREET

Ottawa

Moncton

Member

leading Canadian cities

coast-to-coast wire service.

VICTORIA

1-702-3

Montreal

Boston

a

MONTREAL,

Linited

Philadelphia

securities including latest

maintains offices in

W. C. Pit field &

Associate

extensive investment service

quotations and prompt execution of orders
in American funds. Our Canadian affiliate

and internal bond issues.

Stock orders executed

an

all Canadian

Vancouver

Victoria

HAnover 2-9250

YORK

4

Teletypes
NY 1-1979

NY 1-3975

Volume 181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1395)

subscribed and

rose

to

130, while Pronto 5's went

from par to 120. (Each issue carries
chase warrant.)

1955 will winnow

lot of

a

sheep

from the goats on the Toronto uranium
list, and
many will

bite the dust altogether. Those that

make it and
get
a

rather

into production, however, have

bright prospect, what with

guaranteed

a

price for the priceless end product, the keeper of
the world's peace, U 3 O 8. Our needs for uranium
—the

indispensable ingredient for atom and H

bombs—are terrific and, from

point, it is incredible that 50%
awesome

stuff still

comes

strategic view¬

a

more

or

North

to

Continued

from

of this

America

by

slow boat from Africa.

New Era in Mining and Prospecting
and

attention

more

factors

and

standards

pie

of

living
live

dian

there

economic
are

scene,

seven

stock

be

not

may

aware

exchanges in Canada

that
pro¬

viding active markets, and most modern facilities
for

security trading and the recording of sales, in

thousands of representative corporate issues.
Toronto

Exchange,

famous

for

the

for

example,

volume

of

its

has

The

become

pie who
the

1954, for

haustion

clearing value of $1,349,697,159.

Equally fabu¬

lous, is the Montreal Stock Exchange.
dian

Stock

Exchange

(also

The Cana¬

Montreal)

in

is

their

of

and large,

By

with

pace

will

the

first

century
trend

increase.

ing

is

energy

that

it

and

counter,
This is

placement

the

over-the-

ing

machinery,

available.

largely provided by members of the In¬

vestment

Dealers'

Association

the interdealer activities

of

Canada;

with

Continued

on

32

page

for

over

40

Policy

years

ot

our

last

two
have

govern¬

are

for granted,
simply turn¬

do

we

turn

gas

in

our

the elec¬

on

water.

or

New Power Resource

The

new

are

familiar

with, is
important for the use
so

peace-loving
destruction

the

which

power resource,

now

our

vicious

people

of the

who

men

bent

to

seem

are

invited

in

space

terial

and

alert

to

Dealers and Underwriters

be

our services.

of High-Grade Securities

Members New York Slock

Exchange

STREET, NEW YORK 5, N. y.

ma¬

keeping

us constantly
increasing power

their

avail themselves of

most

reading

our

to

Salomon Bros. & I-Iutzler

than

hordes

consuming

upon

Financial institutions

SIXTY WALL

the

and

as
we

power,

iOSTON

•

PHILADELPHIA

•

CLEVELAND

•

CHICAGO

•

SANTRANCISCO

possible ability to destroy us.

We have
the

being governed by Se-

Our Steadfast

will

taken

spigot

a

tric

of

,

not change
until, in fact,
plentiful and cheap

be

can

homes when

hell

is

32

page

l

us

had freely by

be

vastly more

importance

on

of

of

so

Edmonton provide listed markets in

particular

Continued
.

hungry. Machines,

they

control

we

Of

living standards and maintain

of power.

life and con¬
future development.

our

said

is

of

sources

improve

next

of

these

think,

we

way

trolling

local enterprises.

to

by

the

machines

that

our

for

of

in

is

It

than

more

of

greater
are

more

become energy

versity of, for the most part, shares of smaller

our

we

efficiency, we
find it difficult to offset this

may

In addition, the Stock

this

needs

if

popula¬

regardless

and,

toward

centuries

to

to

world

energy

than

doubled

quarter

of

expansion.

our

be

free

1

pop¬

more

this

the uranium industry is exceedingly bright but also that the

compara-

conversions
source

doubled.

have

that

again

Exchanges in Calgary, Vancouver, Winnipeg and
broad di¬

quick

magnificent

resources, not only be¬
believe that the future

of

urging

are

predicting

In

resources.

the world

has

energy

A

a

tively

scientists

we

so

the conversion

estimated

is

roughly the equivalent of the American Stock

Exchange, in New York.

our

increasing

is

the last 100 years,
ulation is said to

—

total

a

within

dustry and
speed and

born in areas where

were

population

their

775,000,000 shares trading in

Most peo-

mineral
cause

by that time. Other leaders of in-

rapidly that it is forcing the ex¬

It

transactions

Our

boundaries, especially those peo-

It

in the Cana¬

energy

naturally

are

the world.
to

want

to

forces.

energy

the envy of

tion

au courant

country

investing heavily in the future
development of Canada and its

kept

completely

A great many from my
are

natural

Active Market Facilities
Those not

6

page

stock pur¬

a

31

given much attention to

development

this energy
respective

of

in

material

source

our

countries, largely I think because
of the activities of our respective
Atomic

Underwriter

Distributor ** Dealer

Energy Commissions. But

recently

more

have begun to

we

realize that, as is so often the case
in
wars,
scientific advancement
has

been

WHERE

to such

an

power,

up

in

nuclear

M

spite of earlier pessimism, is in¬
close at hand.

deed

IS THE LARGEST MARKET

You

that

FOR INDUSTRIAL SHARES

stations

two

The Toronto Stock

Government and its Instrumentalities

of

Exchange lists

a

larger

number of industrial stocks

than any other two stock

exchanges in Canada.
These include every phase of

major business activity in Canada.
There

are

shares of

Manufacturing companies
enterprises
38 Utilities
27

Paper companies
others.

and many

A complimentary
copy of our
Monthly Review, giving the essential
trading data on the more than

1,000 listed issues, will be
sent to you on

request.

TORONTO
STOCK

EXCHANGE

of

in

these

Industrial, Public Utility ami

Railroad

perhaps ahead of

Corporations

in¬

present

Bankers'

to

predict

industry,

private

that

working in cooperation with gov¬

ing

strides

in

the

direction

Company Stocks

Acceptances

Securities of the International Bank for

ernment, will make ever-increas¬

Reconstruction and

of

Development

greater accomplishment.
Russia

the

has

using

dustry

gangsters

in¬

published
head

who

Canadian Bonds

she

in

energy

is

it

and

that

announced

nuclear

that

that

Foreign Dollar Bonds

re¬

gime have attempted to deal with
some
of the governments which
supply America with
major
quantities of this Wonder Metal.
To speed up American

production,

Floyd

Atlas

Odium

poration

of

the

recently

unlimited.
uranium

it

He

seem

that

almost

predicted

that

fuel will be about

as

in

Cor¬

suggested

the uranium horizons

all

will

of

parts
in

be

the

North

as

porting
gested

mining

this

new

that

we

per

year

fuel.

will

America

He

have

more

The

world

because of the cheapness of trans¬

than

FIRST BOSTON

sug¬

to

CORPORATION

be

one-

half million tons of average grade
ore

to

STREET, TORONTO, CANADA

is

Act of the United States, it is sale

as

1852

Bonds, Preferred and Common Stocks

Bank and Insurance

cheap
Founded

the

dustrial plans, but with the recent
amending of the Atomic Energy

is

58 Financial insti'utions

meet

Securities

50,000 inhabitants. The British

Washington

75 Construction and steel firms
48 Textile

will

alone

State, Municipal and Revenue

British industrial town

a

Government

BAY

fact

the

generating station, powered

a

needs of

98

Securities of the United States

familiar with

are

by a simple nuclear pile, will be
working in Great Britain next
year, and that a
second station
is being built in Scotland. These

IN CANADA?




speeded

that

extent

of

prior to the
furnish
uranium

fueled
be

the

in

power

the

year

1960 in order

initial

for

the

plants

course

of

inventory
uranium-

that

New York

Philadelphia

Boston

Pittsburgh

Cleveland

Chicago

San Francisco

will

construction

/

32

The Commercial and Financial Chronicle

(1396)

Continued

jrom

opportunities which

31

page

\ve

Would

era.

New Era in Mining and Prospecting
certain

a

degree

leadership.
Rio

Tinto

with

industrial

cooperative,

wonder that

Company,

million in

Ltd.,

offering

debentures

of

in

Ontario's

Blind

ing

or

en¬

vestments.

making sizable

brothers,
dustry.

in

the

Uranium

upon

from

investments

mines.

in

us

duction

of

these

materials.

raw

more

Tribute

the

\

our very

to

Here, let

operation with
opment
the

of

production

ucts.

It

only

recently

the

finished

of

south of

has

us

arouse

and

our

cause

us

from

us

to

of trade,

to

our

realize
restric¬

of

use

mining claims, restrictions in

the financing of our

mining

restrictions in the flow

of

are

roadblocks to eco¬
nomic health and growth.

prod¬

governments depend in no
measure

ability to

upon our

capital

All these

ties

been

so

picture

Canada, on the Colorado Pla¬
or
the Great Basins area
would seem of little importance
the

it is overall
production which is the answer to
our
future wellbeing.
Our ene¬
mies
have
challenged us; they
have
challenged
our
ability to
meet the ever-increasing demand
at

for

moment,

for the products

industries.

of

Are

this

meeting

respective
capable of

our

we

Are

challenge?

we

willing to deprive ourselves of the
conveniences
to

carry

of city

on

life in order

willing

to

reaches

of the earth in

the

go

metals

vital

Are
the

work?
forth to

our

we

far
of

search

minerals

and

which strengthen and support our

respective

economies?

willing

eliminate

to

tions which

shackle

Are

we

the restric¬
us

in

when

are

one

but useless activi¬
senses

the

appraises

and

overall

the

ef¬

our

forts to produce raw materials? If
I know you as I

think I know

if your younger

great

great

you

with

the past,

then I

out any fear

the

say

in

with¬

of contradiction that
With this

is YES.

answer

you

Complete facilities

assured,

who

underwriting, placement, and
trading operations might well
be considered huge in relation to the country's
population. Mortgage and convertible bonds, pre¬
ferred and convertible shares, debentures with
share purchase warrants, running into the mil¬
lions of dollars for each issue, have been dis¬
tributed and, in most cases, gone quickly to
premium prices. In dollars, the majority of new
securities have provided funds for the capital ex¬
pansion of established companies, as they strive
to keep up with the constantly growing economy.
All these extensive facilities for buying and
selling, and the maintenance of orderly trading
markets, assure prompt and efficient execution
of Canadian investment orders.

Long-Term Consecutive Dividend Payers

and

investing

suits.

me

that those

of

to paint swiftly the

forward

motion—a

background of

marily

on a

motion

based

pri¬

sound banking and currency, a bal¬

hysteria"

our nerves

and relax

efforts

into

aiding and

its

more

un¬

assisting

worthwhile

initiative.

a

resourceful people, and

Canada,

we

salute

you

—

an eco¬

and in

our

us

"fear

from

our

in

Canada's

It will, how¬

sketchy and incomplete.

serve

system which gives adequate incentives to

to

mining industry and all those

engaged

ever,

budget,

derstanding,
the

corporate and economic Kaleidoscope is,

of course,

nomic

quiet

bend

This

anced

and

suffer

should

of

scope

that our

seem

productive channels, namely,

pur¬

capacity
we

honored to present

latest

listed

and

most

in the following pages

complete list of Canadian

equities whose long dividend records sup¬

port handsomely the kind things we've been say¬

ing about Canada.
is

'

are

the

shepherd to the investment minded,

as

a

Once again

we

say

Canada

wonderful climate for investment.

membership in all leading Cana¬

dian Stock

Exchanges and fast, direct

private wires linking
Montreal

to

most

which

to

Victoria,

and Statistical

supply

you

about

with

any

whose securities you may
not put
our

offer

you

markets

in

Depart¬

The

services of this firm include

dealers and brokers

complete brokerage facilities for Canadian

interested in securities traded in the United States.

of the largest in the financial

can

information

Why

offices from

buy and sell stocks and bonds.

ment, one

business,

our

we can

advantageous

Our Research

and

The

over-the-counter

both sides of the bor¬

on

future is secure, that our progress

the

of investors outside Canada's boundaries.

as¬

from prospectors and de¬

der, it would

is

market;

although, subsequently, a proportion of many
have undoubtedly found their way into the hands

you

resources

to

years,

financed

you,

and has provided

abundance of

an

been

and distributed in the domestic

written

stuff which has made

same

velopers

With

much of Canada's expan¬
through the issuance of
bonds and shares. It is estimated that approxi¬
mately 80 % of such securities have been under¬
During recent

generation is built

of the

surance

for

and Montreal.

sion has

discover, explore and develop the
long list of minerals so vital to
our progress,
Whether you mine

in Toronto

curity Traders Associations located

prop¬

erties and

in

countries.

respective

of

form

the

to

not

but

I feel sure they mean
the bombs

will

country

a

be

restrictions in
taxation, restrictions
precious metals in
our
monetary
transactions,, re¬
strictions in the development of
in

called to my attention

that

may

of commerce,

tions

the

co¬

and

We

high-speed
a high tem¬

destruction;

restrictions

that

in the devel¬

materials

before.

never

bombs of progress,

lethargy

your

splendid

ours

raw

was

its

and

as

eventual

which

far

existence.

tribute to

me pay

today.

rapidly changing world,

a

most of you

Government

government

happening

are

world, needless to say
perature world.
Bombs

the

Canadian

the

in

our

profits

mere

amor¬

equipment.

and

exploding and to some they mean

pro¬

are

plant

electronic world, a

an

highly essential
Benefits

extensive than

—they involve
A

from

of

things

live

In

countries

conver¬

facilities, when

power

the pressures which are being

er,

not

spective

of

advantages

new

generated

appraising these values,
forget the genuine and
real
benefits,
which
are
being
derived by the oeoples of our re¬

let

the

We can't help but sense the pow¬

uranium

not

teau,

But

In¬

alone

our

small

for our¬
but for the peoples

wealth,

in

tization

Much

placed

of

Our

because they do not

faced with the economics of

in¬

emphasis has been
the returns realized

government,

our

There may be those

purpose.

relish

who, like their big
the wisdom of wise

see

investments

to prefer

seems

from

high financial circles who will

sion to

It is likewise sound to

investors

aid

fields simply

offer equal opportunities to small¬
er

selves

borders, it

mineral

of

attempt to delay progress in some

speaks well for the foresight and
good sound judgment of those re¬
for

its
ask

our

I think not; I think this

sponsible

a

ity—the responsibility of search¬

in

tered into with the Canadian Gov¬

ernment?

developers we are
heavy responsibil¬

and

charged with

ing out and finding new sources

Ours
is
a
great heritage; we
have but to survive to accomplish

that other financ¬

nium supply contract has been

pectors

both financial and scientific.

bring the total to $57 mil¬
that a $206 million ura¬

may

lion;

of

opportuni¬

our

31

Canada-Dynamic Domicile of
Enterprise Capitalism

could all enjoy the
ahead.
As pros¬

prospects

to

River-

area, or

instead

all

were

in

one

Algoma

and that
citizens

we

,

Continued from page

us.

Thursday, March 24, 1955

new

a

ties of investment in the develop¬
ment of uranium industries with¬

along

uranium mines operating

your

here

of

any

London syndicate that in¬
the Rothchilds, is taking

a

cludes

$25
of

Is it

that

younger so we
rich

confront

threshold of

the

at

are

...

accurate

company

We maintain

in

these extensive facilities,

long experience,

a

direct

private wire to

be interested.
to

James Richardson & Sons

work for

you;

and offer

Serving Investors Across Canada
MONTREAL, TORONTO, WINNIPEG, CALGARY, EDMONTON,
VICTORIA,
SWIFT

LETHBRIDGE,

CURRENT,

MEDICINE

SASKATOON,

HAT,

BRANDON,

REGINA,
PORTAGE

MOOSE
LA

to

United States dealers and brokers interested in Canadian

secu¬

VANCOUVER
JAW

rities similar facilities in Canada via this wire.

PRAIRIE

KENORA, KINGSTON, GALT, CHATHAM, KITCHENER, WINDSOR

Established

Dominick

1857

&

Dominick

Members of the New York Stock
Members of the Toronto Stock

James Richardson & Sons
Executive




Offices—Winnipeg

14

WALL

STREET

Exchange

Exchange

NEW YORK

5, NEW YORK

Volume

Number 5414

181

.

.

.

The Commercial and Financial Chronicle

TABLE I

(1397)

Continued

from

Uranium Mines.

3

page

that

Pronto

outlined

Uranium Activities

LISTED

In 1954 and Future

CANADIAN

levels, the deepest intersection of
pitchblende being 1,050 feet be¬

this

low

fourth,

nium

in

were ex¬

apart

from

tended

eastward

CASH

of

Ace

Verna

miles

shaft,

of

east

which

is

1%

the

Ace, was com¬
pleted to the sixth level, and
considerable exploration was

From

done

the

third, fourth, fifth,
levels, in addition to an
extensive
program
of
diamond
drilling, on Eldorado ground and

10 to 126 Years

on

and sixth

the adjoining Radiore property
for which Eldorado holds an ex¬
on

Cash Divs.

secutive
Years Cash

Approx.

Including
No. Con¬

% Yield

ploration

Based

showed

Extras for

Quota-

12 Mos. to
Dec.

Divs. Paid

31,

1954
—

tion

on

Paymts. to.
Dec.

Dec. 31,
1954*

31,

Canadian $ *—

Ltd

21

0.40

a 7%

of

the
Ltd.

in

ingot

74%

Operates

crude

Corp., Ltd.line

pipe

0.40

11

4.7

8.50

0.15

14

5.15

2.9

Anglo-Huronian Ltd.
operating
Can.

15

13.37

0.50

Anglo-Newfoundland
opment Co., Ltd.

ore

tons

11

pr or

to

Dec.
*

a

31.

1.25

35

3.6

3%

to

date.

translate

on

two

sinking

a

rock

properly
early in 1955.

re-

staking

several

new

were

drilling

re¬

was

into U.

S.

1,250 tons

Quirke

near

of Great Slave Lake.

The

nium

Ontario

Nordic

trucked

the

for

a

$300,000,000,
of

with

additional

ore

the
at

possibility

depth in the

Quirke Lake deposit suggested by
exploratory
drilling.
Early
in
1955

it

announced

was

nancing

arrangements

000.
erect

that

had

plant.

installations

that negotiations were
completed for the sale of

valued

Plans

3,000-ton

at

$206,910,-

being

are

made

a

day

to

were

plants
property, and to establish
a
modern
town
Jto serve both
properties.
A shaft was begun
the

Quirke

Several

ura¬

in

the

Blind River and Haliburton-Ban-

drilling at the Pronto

IN

Lake

property in

explored
A shaft

other

in

was

Algoma

begun at the Buckles

property

following
of

properties were
Blind River Region.

an

diamond

drilling,

prop¬

reported

to

late

extensive

have

in

which

indicated

Continued

on

ask

and

prices

or

the

quotations

last

are

sale

No.

funds,

page

35

area

CANADA

cus¬

was

the El¬

maintained,

of

old

tailings.

underground

done, mainly

was

8 veins.

extended

of No. 2

at

on

ex¬

the

The No. 2
under

the

shaft, and connected

Incorporated 1932

Outstanding Brokerage Service in

Calvin

Bullock, Ltd.

507 Place D'Armes

Montreal

CANADIAN

SECURITIES
We have maintained
and

are

service

to

our

enables

us

to

leading exchanges. A direct wire

Canadian

offices

and

principal markets

supply the latest available information and

quotations and to execute
Consult

IN THE UNITED STATES

offices in Canada for many years

members of all

us

your

orders promptly.

regarding securities of companies

in both the United States and Canada

THOMSON & M' KINNON
BROKERS IN SECURITIES AND COMMODITIES

II Wall
40

Street, New York

offices in the United

States

and Canada

Incorporated 1952

Calvin Bullock
One "Wall Street
New York

Members New York Stock




Exchange and other leading security and commodity exchanges

was

486,-

page

being derived from

7 and No.

;level
on

rate

was

re-treatment

ploration

Asked.

Continued

mine

Considerable

of

as

production

1954,

program

completed,

were

to

treatment

at each

capacity of

a

fi¬

been

and

treat¬

Beaverlodge

was

Lake

1954.

principal activies for
in

and

reported to have
joint gross value of more than

on

ONTARIO

well ad¬

was

were

concentrates

Lake,

day

a

Lake

properties

being

and the other at Stark Lake

objec¬
building of

The

also resumed at

was

uranium

some

sale

1954

Bid

shaft sinking had

feet.

vanced by the end of the year.
The orebodies indicated on the

announced

were

40 miles east of Great Bear

arm

of

made

drilling was done on
other properties, one about

the east

600

treatment plant with a capacity

properties.
Plans
shaft on the Ray-

Diamond
two

of

ore.

dorado

1954.

Add

that

done

and

occurrences

Diamond

ported.

tive

NORTHWEST TERRITORIES

fibre

31.

$55,000,000, and by the

5.5

the
Dec.

Louis

St.

additional

tom

0.60

10

17

Mining & milling of asbestos

price

at

The

represent

Louis

significant

entirely for the handling of

Devel¬

"Ord."

Corp., Ltd.__

Quotations

the

of

of the year

the extra capacity being intended

mining interests

•

place,

investi¬

were

additional

much

radioactive

were

ago

Nordic Lake properties of Algom

along the

drilling

700

mining

Nev/sprint & allied products; also

Asbestos

St.

have

bring this plant to

3.7

co.—chiefly
gold

staked,

years

fault

The

in

few

a

Verna and Raggs Lakes,

ment

Alberta

&

properties that

gated

Sev¬

mond

ing

exploration & development in

interested

the

in

had
gross

$70,000,000

the Fish Hook Bay property.
Trial stopping was done in the
Martin Lake mine, and the result¬

in

Anglo-Canadian Oil Co., Ltd.

Holding

eral

Yellowknife.

of

erty, and at the Quirke Lake and

and

Colombia, S. A.

Oil

northwest

croft regions. In the former, large
to permit correlation
tonnages of uranium-bearing con¬
intersections or estimates of'
glomerate were outlined by dia¬

between

oil

was

extent
and
relationships.
Drilling from the surface was con¬

2.7

world

the

Eldorado

mine,
in the Marian River region,
the

tinued

2.00

16

,

Largest producer of aluminum

Andian National

principal activity for ura¬
Northwest
Territories,

incomplete

through retail chain

Aluminium

from

a

flat-lying
bodies in a

rocks

value
end

grade but exploration is still too

5.1

distributes shoes

&

of

These

work

workings

shaft.

The

for

old

to

fairly

favorable

hanging-wall
fault.

Agnew-Surpass Shoe Stores,

Mikes

several

of

This

agreement.

pitchblende-bearing
zone

1954

raises

took

The

Paid

relatively small bodies
better than average

of

ore,

grade.

DIVIDENDS
Been

the

from

shaft to within about 1,800 feet of
the Verna shaft. These levels in¬
tersected

Have

third,

fifth, and seventh levels

On Which

CONSECUTIVE

The

than

more

a

been completed to its first

by

surface.

Mines

orebody with

an

of

reported

was

and had negotiated a contract for
the
sale
of
precipitates to the

Prospects

to be comparable to that on upper

Common Stocks

value

It

Uranium

33

35

34

The Commercial and Financial Chronicle

(1398)

...

Thursday, March 24, 1955

Toronto Bond Traders Association

Hal

Murphy, Commercial & Financial Chronicle, New York; "Dutch"
Fisher, Walwyn, Fisher & Co.; Jack Kingsmill, Secretary-Treasurer

S.

A.

Spidle, Collier, Norris & Quinlan; G. S. Osier, Osier
Hammond; W. J. Scott, Gairdner and Company, Ltd.

J.

&

R.

Meggeson, J. R. Meggeson & Co., Ltd.; John
Findley Coyne Limited; B. de Breyne, L.
& Co., Ltd., Montreal

Deacon

of Investment Dealers' Association of Canada

C. Moorhouse,
G. Beaubien

v>':

Gilbert

Smith, Toronto Dominion Bank; T. F. B. Walker, R. A. Daly Co., Ltd.; A. E.
Wood, Gundy & Company, Ltd.; N. H. Gunn, Bell, Gouinlock & Company, Limited;
Harold Backus, McLeod,
Young, Weir & Company, Ltd.

/<
'

J.

F.

Van

Scott,

G.

H.

/vt/

'

"

Howard

Oliver,

Ltd.;

Duzer,

Mills, Spence & Co. Limited; C. E. Murray, Canadian Bank of
Commerce; B. C.
Securities Corpn. Limited; N. D. (Jack)
Young, Dominion Securities Corpn.,
Limited, President of the Investment Dealers' Association of Canada

&

C.

Company, Limited; H. A. Benham, Bank of Canada, Ottawa;




A.

Co.,

-

S.

Dominion

MacFarland, Nesbitt, Thomson

Corpn.

&

,

'#*,><sugg

Stanley Cox, Bankers Bond Corporation Limited; M.

Wilson, Eastman, Dillcn & Co., New York; Mickey McBride, Midland Securities
Henry Robson, Eastman, Dillon & Co., New York; Charles Goodeve, F. B. Ashplant
New
York;
Dereck Simpson,
Midland
Securities
Corpn. Ltd.

Brown,

Dominion

Securities

Corpn.

Ernie

Limited

H.

Frost, Bank of Nova Scotia; F. D. Osborne, Imperial Bank of Canada; A1 Tisch, Fitzgerald
& Company, Inc., New York
City; Walter Sullivan, Equitable Securities Canada, Ltd.

Jarvis,
B.

Wisener

Glencross,

and

Royal

Company, Limited;
Bud
Wisener,
Wisener
and
Company, Limited;
of Canada, Montreal; Cliff Low, Doherty Roadhouse & Co.

Bank

MORE PICTURES ON SUCCEEDING PAGES
/

Volume

Number 5414

181

Continued

from

.

.

The Commercial and Financial Chronicle

.

Continued

33

page

No. Con-

% Yield

Extras for

Dec.

Divs. Paid

J.

Canadian $ *

Gold

Ontario

14%

preliminary

Bank's

BANK

offices

44i/2

3.1

BANK

branches

415

Bank's

the

on

Shield, possibly

1.80

122

53 Vi

3.4

tained

sub-

&

on

Bank

Dominion

33.

page

2.00

58M

adits

3.4

were

rences

on

page

73

1.20

36

3.3

Starting

on

where

&

•

gold

Quotations
price

prior

to

a

31,

0.65

9V8

7.1

to

74

2.00

46%

4.3

ion

Bank
in

Bank.

10

0.10

2.95

3.4

system

of

feet.

tons
Croft

a zone

at

613
1954

31,

date.

sale

1954

Bid

Toronto

and

shown

lined,

and

prices

ask

or

the

quotations

last

are

efinery

at

1955.

for

made

This

will increase recovery

uranium.

and

surface

continued

was

property

The

principal

timated

to

zones

contain

as

are

of

as

At

Dominion

for

the

Bank

former

Continued

of

on

ther

Toronto.

page

end

region

of

active

ing

were

es¬

eight new properties, all be¬
the
general
pegmatitic

of

Diamond drilling was done

property,

one

radioactive

Two

done

on properties staked in pre¬
vious years in the region between

QUEBEC

Prospecting
active

in

almost

pounds of U:)08 per ton.

Considerable

covery

head
of

staking
of

was

Boulder

done

Creek,

Atlin, following dis¬

of radioactive shear

zones

entirely within the Gren-

discoveries
all

the

Cardiff

the

Cana¬

additional

reported, almost

were

being of pegmatitic and con-

tact-metasomatic types.

drilling

Diamond

reported

was

been done at 21

to

have

properties, main¬

ly in the Maniwaki, Grand Calu¬
met,

The

discoveries

in attempt¬
of

source

blende-bearing

were

a

pitch-

specimen,

Oka regions.

and

latter

occurrences

that

are

Continued

and

In

the

several radioactive

region,

mainly
on

page

and

was

re¬

Uranium

INVESTMENT

had

already been out¬
reported in other years.

the

Beaucage

property

testing

of

a

large

37

is

mainly

of

interest

for

Co

OPPORTUNITIES

16

IN

on

GROWING

deposit

its

ANADA

co-

growth of Canada

today offers unusual possibilities for the investor
seeking capital appreciation tomorrow. We have

faith in the investment potential re¬

our

Canada's

economy

obtain capital

Boston Stock Exchange
Midwest Stock Exchange

for

a

in

a

number of

ways.

has been by supplying capital directly

to individual Canadian firms.

MEMBERS

Bankers Association

of

Several

minerals.

One way

American

were

of Quebec,

containing secondary uranium

flected by

Exchange

parts

Shield.

expressed

American Stock

staking

and

many

Late in the year un¬

exploration

1842

Exchange

discoveries

from the vicinity
of Tooth Lake, in Rice Lake Min¬
ing Division.
Surface work was

dian

the

Fort Chipe-

reported

were

We believe that the industrial

New York Stock

near

wyan.

averaging 2.2 pounds of U308 per
ton, and 600,000 tons averaging

northeast

west

Radio¬

reported

were

sub-province

near

the

of

Athabasca.

ville

outlined by diamond drilling. This

Laidlaw &
Founded

north

Lake

occurrences

class.
at

of prospecting and

done in the Precam-

were

Newman Island in Lake Nipissing
a shaft was begun to permit fur¬

became

merger

Bank

staking
brian

tons

ing to trace the

vertical

Birch

110,000

re¬

U:i08

the

reported that

made late in the year,

per

ALBERTA

ex¬

at

near

owners

the two

1.8

of

Winnipeg and Kenora.

BRITISH COLUMBIA

Underground

the

estimated to

0.11%

refining

new

a

to be in operation in June

process

of

r

Hope, extensive installations

were

in¬

occurrences

MANITOBA

Eldorado

properties in Haliburton-Bancroft
region in 1954.

sale

funds,

The

Port

the

on

Diamond drilling was done on
Dec.

in

were

property
tons

in

shaft

a

of

U;(08 for

Late

properties

property, where uranium-fluorite

February, 1955, thereby forming The Toronto-Domin¬
data

10

length

a

0.084%

averaging

deposits

translate into U. S.

The

of

Earths

sumed

b Bid.

effective

width

derground

Asked,

t The

shown

0.06% ThCL.

Mines, Ltd.

that

2,700

adjoining

averageing

foot,

1954.

3%

the

ported, to test
contain
1,100

producer

Add

have

Rare

rayon

telephone

represent

On

plans for sinking

5.5

Quebec

Dec.
0

71/4

stable

32

were

vertical foot, averaging 0.09%

feet

equipment,

and

Belleterre Quebec
Quebec

21.2

purposes

important

Ontario

bl5%

0.40

15

dykes

two

contain

to

was

plored by diamond drilling. About
1,000 feet of drifting was reported

a

Telephone Co. of Canada

Most

in

silk

all

for

on

an adit was driven for
further tests of part of a zone ex¬

supplies

Belding-Corticelli Ltd
nylon,

re¬

property,

Page 51

3.20

24

Beatty Bros. Ltd

threads

At

Lake

to

Barber-Ellis of Canada, Ltd.

Makes

was

Centre

the

few

a

parts of the province,

Kenora region.

Island.

U;,08.

Dividends From 5 to 10 Years Appear in the

Bell

at

on

U:)08.

per

Listed Companies Which Have Paid Consecutive

&

ried

ploration
Rexspar

at

on

dis¬

reported from dif¬

A good deal

from

done

was

property in Port Arthur re¬
gion, and surface work was car¬

property,

1955 it

drilling

one

muck

estimated

barn

Diamond

occur¬

one

property

Manufactures

Faraday

February

as well. In the
region
drilling
was
on
nagnatite
apatite

radioactive

new

were

cluding several
pyrochlore.

uranium

bium, tantalum and uranium.

deposit had yielded
samples averaging 0.454%
Underground
exploration

44.

in Canada

equipment, household
pumps, etc.

test

to

but

deposits that also contain colum-

continued

Nationale

Stationery & printers'

of

ported that 205 feet of drifting
Bank

Banque Canadienne

Second Table

exploration

driven
the

on

in

and

of

See advertisement of Toronto-Dominion

Operates 247 branches

the

from

ob¬

were

pegmatitic deposits in the
Haliburton-Bancroft region. Two

in

1955
under name
Toronto-Dominion Bank.

results

several

98

February

in other forma¬
Mississagi.

besides the

Gratifying

world

advertisement

with

49.

page

Canadian

the

of

parts

tions

OF TORONTO t

Merged

that

other

agen¬

advertisement

throughout

See

•

7.1

results, as well as
discoveries, offer
other orebodies may

ferent

be recovered

continued

surface

eventually be outlined in the ter¬
ritory north of Lake Huron or in

1.40

126

OF NOVA SCOTIA-

Operates
•

2.25

hope

throughout the world

See

•

0.16

14

exploration is planned for

coming season.

coveries

Prospects

content,

Chiplean

done on 20 properties in the
general Blind River region. These

6.7

gold producer

Operates 602 branches and
cies

may

certain

Mines Ltd

lumbium

tioned

1954

—

was

1.00

17

BANK OF MONTREAL
•>;

averaging $17.98 a ton.
properties men¬
above,
diamond drilling

In addition to the

general hardware

Aunor

tons

500

Large wholesale & retail business
in

Activities

cn

Paymts. to
Dec 31,

Ltd.,

"B"

H.,

Based

tion

Dec. 31,
1954*

31,

1954
—

Ashdown Hardware Co.,

Quota-

12 Mos. to

the

In I9S4 and Future

Apprcx

Including
secutive

active

33

page

Canadian

Cash Divs.

Years Cash

from

Several

Canada-Dynamic Domicile of
Enterprise Capitalism

35

(1399)

Another has been to

indirectly through the raising of funds
which invest

number of investment companies

primarily in Canadian securities. These are but two

New York State Bankers Assn.
ways we

have supported the industrial efforts of our

Investment Bankers Association

neighbor to the North.
Canadian

Stock

Exchange

We shall continue

our

efforts to support—and ad¬

vance—her sound economic progress.

Kidder, Peabodys?Co.
founded 1865

25

BROAD STREET, NEW YORK 4, N. Y.

i

/
/

^Members Tkew York and ^American Stock

Boston, Mass*.

•

Bloomfield, N. J.

Washington, D. C.




•

•

Princeton, N. J.

Oil City, Pa.

*

*

JMembers 'Boston

Montreal, Que.

Toronto, Ont.

17 Wall
boston

Exchanges
and JMidwest Stock Exchanges

Street, New York 5, N. Y.

chicago

philadelphia

san francisco

of

37

3«

(1400)

The Commercial and Financial Chronicle

...

Thursday, March 24, 1955

Annual Dinner March 11,1955

Lundy

Nornabell, Charles H. Burgess & Company; Jack Burgess,
Charles H. Burgess & Company; Jim Annett, Gardiner, Annett
Limited; J. Reg. Findley, Deacon Findley Coyne, Ltd.;
John R. Schmitt, Gardiner, Annett Ltd.

Arnold
Plaxton, Intercity Securities
MacLean, Bank of Nova Scotia; John

Weir

&

Company,

Limited;
Weir

&

Bank

of

Jim

The

Barry

Townley

Strings,
ments

Norman

B.

one

Charles McCutcheon, Bankers Bond Co.; Charles Murray,
Duke Scott, Imperial Bank of Canada;
Canadian Bank of Commerce

of

the

many

delightful

entertain-

Richard

A.

Daly,

following the dinner

Moore,

Bank of Nova Scotia; Jim Granton, Matthews & Company; N.
Harris & Partners Limited; J. D. Taylor, Harris & Partners
Limited;
Jack Fulton, Walwyn, Fisher & Co.




Jr.,

R.

A.

Daly

New

Co.

Collier, Norris

K.

McKinnon,

William Phair, Breckenridge, McDonald «£ Co.; William
McAlpine,
Brawley, Cathers & Company; B. A. Mallon, McLeod, Young, Weir
&
Company Limited; Ed McDonnell, Intercity Securities

Corporation

Limited

William

Commerce;

Hughes,

Langdon,

Barlow,

Company, Limited

Jay Rutledge, Canadian Bank of Commerce;
Canadian

Limited; Sandy
McLeod, Young,
McLeod, Young,

Corporation
E.

Leonard

&

Bartlett, Bartlett, Cayley & Company, Limited; Vincent P. Shea, Glore, Forgan & Co.,
York; Harold Knight, Walwyn, Fisher & Co.; H. G. Jarvis, A. E. Ames & Co., Inc., New York;
J. P. Walwyn,
Walwyn, Fisher & Co.

Limited;
Quinlan

T.

M.

W.

Chilty,

Harold

Crossin, L. W. Virtue, and L. L. Bell, all of James
Richardson & Sons, Toronto

W.George Tubby, W. G. Tubby & Co., Ltd.; Ian Macarthur, Toronto Dominion Bank; N. L.
MacNames,
N. L. MacNames & Company
Limited; Edward Jackson, N. L. MacNames & Company Limited;
Cec Parsons, N. L. MacNames &
Company, Limited

i

Volume 181

Number 5414

Continued

from

.

.

The Commercial and financial Chronicte

.

Continued

35

page

Cash Divs.
Extras for

Quota-

Based

from

12 Mos. to

tion

Paymts. to

Dec. 31,
1954

Dec. 31,

Dec. 31,

1954*

1954

—

Biltmore Hats Ltd.fur

Men's

Brazilian

felt

Power

5 V2

in

Co., Ltd. "Ord"—

10.53

14

8%

gion, was explored by diamond
drilling. This discovery resulted
in the staking of many claims in
the vicinity. Also from Chibouga¬
mau
region,
Opemiska
Copper

6.3

Note
20

1.20

a23

5.2

Mines

bonds, revenue

stamps, and similar items

production,

0.77V2

29%

Co.

telephone

privately

system in

2.00

44V4

0.09

1.80

46%

3.4

18

Steel

Co., Ltd.__

rolling mill &

Butterfly
Makes

related

Hosiery Co.,

1.50

26

5.8

ladies'

0.30

13

5

Makes

wide

cotton

variety

linen

of

0.80

12

13

This

explored by
caused

con¬

near

Harvey
Upsalquitch

and

an¬

were

ex¬

Edmonton

LOS
18

Leases oil

&

0.10

151/g

with

&

Co.,

with

Dominion

&

Canada

24

beet

and

12

0.10

20%

4.9

Co.,

cake

;

Ltd

wholesaler

3.00

&

Quotations

price
*

prior

Dec. 31,
Add 3%

Foundries, Ltd..

operating

to

five years of postwar

adjustment,
totaled 108.
In

that

year

the

important step was
changed our name

an

taken when

we

Investment
of

Bankers'

Canada—more

therefore necessary .0 change

our

Co.,

He

was

affiliated

210

West

formerly

Schoenbrun.

and

name

adopted

we

present identification
vestment

The

Association

Dealers'

Canada.

our

The In¬

—

Maritime

of

district

also formed in li>35 and

was

con¬

sisted of six head offices and four

As¬

about

In

1940,

with

firms
10

the

five

the

in

one year

into

entry

and

41

four

one

years

of

year

bers had

sulting

totaled

branches.

of

the

in¬

depression

war,

mem¬

our

been reduced by

from

114

In

w.:ich

1930-1940

years,

cluded

after Canada's

war/membership

district

20, re¬

consolidation

and

retirement.
In

1930,

sections
ern

still had only three
eastern, central, west¬

we

—

out

—

to

grown

membership had

our

firms

134

with

17

branch offices.

It is interesting, I
think, to note that in 1935 after
six

hazardous years, we still had

113

members,

who

stuck

those

and

it

out

for

You

The

sons.

Pacific

in

1932

three

and

was

in

change in
dition

of

1935
our

1934,

no

one

the

War

Fi¬

During the war
our members did a job that com¬
manded
respect and admiration
not only in Canada, but a job that
by

not

any

equalled or approached
other free country.

Before
war

dealing

briefly

offices

sulted

to

a

our

in

oc¬

involving
and

district.

the

a

ad¬

Follow¬

the

post¬

situation which
association

In June

associate

with

result

the

who

re¬

dealth

almost

became

bers."

After the

1942,

we

memberships

that

stocks

many

firms

exclusively in

"Associate
war,

Continued

other than Cana¬

af¬

and

part from the activities

initiated

changes

—

with

period, I think I should refer

fected

ing amendments to the Bank Act
in

with

of the N.W.F.C.

name

new

a

familiar
National

all

the

Committee.

nance

head

three

branch

important

curred

of

us

five

district

with

are

work

was

of

the

helpful and expensive les¬

10

1,20

23

that

translate

for stock

now

Company,

Calif.—Harold
with

10

E.

North

F.

it

on

Mem¬

was

felt

page

J.

Hutton

Garfield

Avenue.

5.2

L. G. BEAUBIEN & CO.

company—

Dec.

With Boettcher Co.

into

1954 sale prices or the last sale
Bid and ask
quotations are as of

U.

S.

DENVER, Colo.—Robert F. Baroch
has
joined
the
staff
of
Boettcher & Co., 828 Seventeenth
Street, members of the New York
Stock Exchange.

funds.

dividends, splits, etc.

Asked.

Continued

on

page

Stock Brokers

(Special to The Financial Chronicle)

31,

date.

1954.

t Adjusted
a

represent

to

&

Street.

Leo

Wylie is

machinery & equipment interests
•

become

PASADENA,

and

&

Holding

Moving ahead in five year pe¬
riods, we find that by 1925 after
membership

It

was

or

branch office members.

members.

24

use

Banker."

word

With E. F. Hutton & Co.

3.3

retailer

Canada Iron

with

provinces had beer,

"Bank

the

(Special to The Financial Chronicle)

Bread

Bread

1.00

refining

sugar

has

Barth

Sugar

Ltd

Cane

J.

Seventh

Alberta

Canada

added

Two

ANGELES, Calif.—Walter

Aufhauser

0.6

drilling rights in

gas

western

—all in Vancouver.

/Now With J. Barth

Corp.,

.

four

offices

&

(Special to The Financial Chronicle)

&

consisting

of

Ontario, and
western section comprising the

formed

r

•t

Ltd._

a

section

many

near

plored by diamond drilling.

6.1

products

Calgary

central

Province

could

Banks

Chartered

dian

eventful years from 1929-1934 had

other

Mills, Ltd...

the
the

currence

6.0

full-fashioned

Linen

in
of

provinces—42

resembling
thucholite,
carrying
fine-grained pitchblende. An oc¬

hosiery

Caldwell

was

Hampton,

1954,
resulting in several discoveries in
widely-separated localities. Some
of th^se consist of
hydrocarbon-

oper.

Lt.d._

near

siderable prospecting in the
prov¬
ince during the summer of

28

bec and the eastern

sociation

drilling during the win¬

1953-54.

had

we

that later.

accurrence

of

start,

104 members—38 in the
section comprising Que¬

eastern

to

ter

flooring and in¬

Steel

on

6.0

1.50

sulation

Burlington

its

mine.

diamond
15

Building Products Ltd.!
roofing,

of

reported in 1953,

Canada

modest

our

a

vein

An

gold producer

Asphalt

from

producing

4.5

owned

Broulan Reef Mines Ltd
Ontario

as¬

NEW BRUNSWICK
39

largest

obtained

level

In 1920, four years

overseas.

after

our

third

Telephone

"Ord"

Second

been

uranim

chalcopyrite-magnetite

2.6

copper

Columbia

that

the

46

refining,

distribution

British

reported

had

says

American Oil Co. Ltd.

Petroleum

township,
in
the
Chibougamau re¬

southern part of

Ltd.

British

Bressani

10

page

grown to

discovery of uraninite in
magnetite-rich pegmatitic granite

7.3

utility interests in Brazil

bank notes,

con¬

drilled.

were

A

—

hats

felt

British American Bank

Makes

a

tent

Traction, Light and

Diverse

Co.

0.40

21

wool

and

Canadian $ *

interest for their columbium

from

"Oui Dignity Is Not
To Be Disputed"

on

secutive
Years Cash
Divs. Paid

Continued

35

page

Prospects in 1954
And Future Prospects

Apprcx.
% Yield

Including
No. Con¬

from

Canadian Uranium

Canada-Dynamic Domicile of
Enterprise Capitalism

37

(1401)

39

Members Montreal Stock
and Canadian Stock

Exchange

Exchange

Telephone: PLateau 2171
221 Notre Dame Street West,
MONTREAL I

4%
Canadian

Ottawa

Government, Municipal

Paris

L. G.

Public Utility and Industrial Securities

BEAUBIEN &

Brussels

CO.

LIMITED

Investment Dealers

Members Investment Dealers' Association of Canada

Canada-wide service, with offices at:
Montreal, Que.

Toronto, Ont.

Winnipeg, Man.

Quebec, Que.

Ottawa, Ont.

Calgary, Alta.

Halifax, N. S.

Hamilton, Ont.

Edmonton,

Saint John, N. B.

Charlottetown, P. E. I.
St. John's,

Underwriters

—

MONTREAL

Vancouver, B. C.

Quebec

Trois-Rivieres
St

Nfld.

Distributors

—

<

Alta.

Shawinigan Falls
Sherbrooke

Hyacinthe

Dealers

BANQUE

Royal Securities Corporation Limited

L G.

BEAUBIEN

Financial operations
between France and Canada

244 ST. JAMES

STREET WEST, MONTREAL 1

I,

rue

Richepance
PARIS

Royal Securities Company
Members:

Montreal Stock




Exchange

The

Canadiaft Stock Exchange

Toronto Stock

Exchange

Branch at St Pierre

(Territory of the Islands of St Pierre and Miquelon)

39

38

The Commercial and Financial Chronicle

(1402)

...

Thursday, March 24, 1955

Over 400 in Attendance

E.

R.

Cameron, George E. Hynes,
all

John

L.

T.

B.

Doug

of

Toronto

Edward
Dominion

Perkes,

Graham, J. L. Graham & Company, Ltd.;
Wilson, A. F. Francis & Company, Ltd.;

Morton,

Dominion

Canadian

Alan

Smith,

John
Tom

Gordon,

Bongard & Co.; Clarke Cowan, Bob Prittie,
Kennedy, Midland Securities Corpn., Ltd.

S. Brown, J. L. Graham & Company, Ltd.;
Bradbury, Brawley, Cathers & Company

Bank of Commerce; Grant Adam, Toronto
Joe Waller,
Canadian
Bank
of
Commerce;
McGouran, Canadian Bank of Commerce

Bank;
Pat

and

Bank

Jim

Lamb,
McKinnon;

E.

Arthur

M.

Fairclough

&

Hayman,

Co.

Ltd.;

Frank

G.

Weller,

Wisener and Company Limited

all

John

Fairclough,

Fitzgerald, Eric Scott, R. K. McConnell, O. A. H. Sims

Thomson & McKinnon; George Ormonde, Thomson &
Norman Albert, Goodwin Harris & Company; Russell
Gee, E. T. Lynch & Company

Lloyd Garrett, J. Ross Oborne, and George
Mulligan, all of Nesbitt, Thomson and Commpany Limited ;~
Dave McCart and
Derrick
Leach, both of Mills, Spence & Co. Limited




Dennis

and

Peter

Goulding, Rose
Medhurst,

of

J.

H.

all

A.

H.

Ackerman,

Green, Royal Securities Corporation, Limited; Harold Stanley,
Royal Securities Corporation Limited; John C. Brown,
Bank

&

and

Crang & Co.

Co.

of

Ltd.; E. J. Allman,
Gairdner

and

of

Montreal

Len

Watt, H.
Limited

Company

V. Shaw,

and

C. E. H.

Volume

Number 5414

181

Continued

from

.

Continued

37

page

from

Cash Divs.

educational pr6=
gram, nor have they subscribed in
any important way to the pub¬
lications prepared by us for dis¬

"Our Dignity Is Not
To Be

Approx.

Including

,

Quota-

Based

on

secutive

12 Mos. to

tion

Dec. 31,
1954

Dec. 31,

Dec. 31,

1954*

1954

Divs. Paid

•

One

Life

of the largest

Canadian $ *

3.00

100

Co

Assur.

that

Paymts. t)

Years Cash

Canada

bers

1.9

in

Ltd.

0.50

15

part

5.6

b9

these

variety of tools & machines

for

the brewing

3.00

27

71V2

4.2

industries

mining

Full

in

area

line

of

bl4

Northern

first

1945,
In

2.75

83%

3.4

passenger

with

mem-

after

year

district

in

apple

and

Wire

Cable

1.00

317%

5.1

price

a

75

prior

to

31,
3%

to

us

after

year make

our

should

a

real

con-

association. May-

long enough,
At this point, I would

like to

our

few reasons supporting the value
of membership in our association
—
just a few of the things the
IDAC

has

done

its

for

member

houses. I shall deal with the

asso-

sonnel

of member

houses

per-

as

dis-

prompting

Provincial and

Government of Canada Bonds

Municipal

94

Debentures

Treasury Bills

62 members

-

members

9

members

26

Corporate Bonds and Shares

members

10

members

membership,

that

Dec.

on

31,

date.

translate

1.20

87

aims

40

3.0

ciation.

those

and

sale

and

S.

ask

We

who

and

who

objectives

policy of

ties

which

supplied promptly

executed

our asso¬

interested

not

are

Statistical information

wel¬

in

through

apply for membership

the

on

Canadian Securi¬

on

on

Toronto

request.
Stock

Orders

Exchange

affiliate Member Corporation.

our

to clip a corner off an
already
shrunken
profit
dollar
merely

42.

page

1954

Bid

and

prices or the last sale
quotations are as of

funds,

into U.

to

firms

in

interested

are

conform to the

to

Asked,

b Bid.

Continued

on

page

who

cannot

Direct

do not intend

or

41

private wire with Goldman, Sachs & Co.
30 Pine

contribute

anything to our in¬
dustry as a whole.
Our membership and
our ac¬
tivities
have
expanded
rapidly
since 1949 and your executive this

1954.

Add

10

members

7

have

4.0

through¬

advertisement

represent

Dec.
4

branches

3.00

ropes

world

Quotations

those

into

Pacific

Co.,
16

See Bank's

•

•

to

Underwriters and Distributors

Our

districts:

We

"B"

the

and

the

1948

divided

now

Atlantic

1-1

Quebec

30

CANADIAN BANK OF COM.

out

members

our

products

and

704

view,

tinct from members in a moment
examination results from the or so. The list of accomplishments
that approximately half of
Continued on page 41
situation

Another

fact

memberships.

is

Ontario

Ltd

Copper and steel wires and

Operates

de¬

voting personnel, experience and
money in the interest of all our

ciation have built up, particularly
in the past 20 years.—And to bring
about a membership whose aims
conform with the original prin-

head offices and eight

office

come

Ltd.

and

active part,

organized

was

Alberta
Vinegar

first

oil for the

came

and

Mid-Western

Canada

an

our

1916,

tion our members and our asso- give you what I consider to be a

include

Vinegars

February

who still take

action that might be necesto protect the good reputa-

hotels

Canada

in

have

to

in

by

that

recall

course,

West

organization

221/4

Organization

Canada

seven

branch

vessels:

interests

and

one

—

of

the

of

AJbfrta

fix
0.25

12

Ltd.

all,

of

cars

Which Have Paid Consecutive

Second Table Starting on Page 51

diverse

1950

corporate

102

associate

101

any

this

Dividends From 5 to 10 Years Appear in the

other

had

we

District

out

Freight

meeting

in

proved

be added many, many more, who

sary

districts, with 228 branch offices.

deposits

Canada Steamship Lines,

objectives

desirable

been

national committee examine care-

membership had risen to 196. At
the
present time we have 208 ciples and objectives of
head office memberships in six ciation.

You

Listed Companies

discussion

of

source

consideration.

security,

mortgage

these

seemed

have

those 10 firms who sat at

last six years.

the

membershio

benefits of

IDAC

be the free riders have been with

constant

a

elimination of associates—our full

4.3

35

prods.

99

issues debentures, accepts

With
it

the

tribution to

bers.
1.50

20

Corp.
on

busi-

in

not

year

this has created

members and

Canada Permanent Mortgage

Lends

major

investment

The

only of membership but of past, present and
future aims and objectives, and
consolidation of advances or gains
made

of

development

Canada.

examination and consolidation,

Examination,

place and function in

dealing with membership, having

In

Quebec

packinghouse

the

has devoted time and energy

our

economic

in mind the desirability of taking

4.3

important

Packers Ltd. "B"

Canada

0.60

26
serves

or

the

fully that section of our by-laws

and

Ltd.1
subs,

mem¬

to

story of

,

mem-

a

Through

full

our

important

to

and

ness

Canada Northern Power

Corp.,

of

of the business of many of
firms was not necessarily

confined

distilling

&

mem¬

increase

year

...

.

our

bership problem which has been

Canada Malting Co., Ltd
Malt

a

The

bers.

full

The decision re¬

number

the

members

tremendous

in

who

firms

become

to

resign.

or

all

associate

sulted

accident

Canada Machinery Corp.,
Wide

had

had been a mis-

1948

become

cither

155

in

and

had

sickness insurance

and

this policy

take

—

Canadian com¬

panies underwriting life,

in

tribution to the investing public,
in which we have tried to tell the

Disputed"

% Yield

Extras for

No. Con-

partici=

members have never

our

37

page

pated

Canada-Dynamic Domicile of
Enlerprise Capitalism

39

(1403)

The Commercial and Financial Chronicle

.

.

Street, New York

Equitable Securities Canada
LIMITED

Members: The Investment Dealers' Association
220

Canada offers ^ou oftporfunr

BAY

STREET —TORONTO,

EMpire

Telephone:

of Canada

CANADA

6-1141

OPPORTUNITIES IN CANADA

can

be of valuable assistance to those interested

industrial

development of Canada and of benefit to

Our facilities
in

the

investors

in

selecting suitable investments through which to

participate in Canada's assured growth.

Nesbitt, Thomson and Company
Limited
Members

The

of

Investment

Head Office:
and here is the

Dealers'

Association

of

Canada

355 St. James Street W., Montreal

Branches in the

principal Cities of Canada

International Bank to help you
Discuss your

With more than the U.S.A., and the West
Great Britain, 400 branches in Canada,
Indies,

International Banking requirements with:

Nesbitt, Thomson and Company, Inc.
25
•

and with correspondents in other

Broad

A Partner in Canada's Growth

Street,

New

York 4,

N.

Y.

Teletype NY

Telephone HAnover 2-8875

1-4358

countries—The Bank of Nova Scotia is in
Branches Outside Canada

fact
you

an

International Bank equipped to give

authoritative information and expert

of the many
banking and financial problems and details
guidance

on

credit,

or

connected with Trade.




any

General Offices:
44

King St. West, Toronto

In

Jamaica:

Kingston

and

16

other branches. In Cuba: Havana

Direct

wire

connections

between

and 6 other branches. In Puerto
New York Office:

37 Wall St.

London Office:
108 Old Broad St.

Rico:

San

Juan,

Fajardo

Santurce. In Dominican
Ciudad Trujillo;
dents all

over

and

and

Republic:

correspon¬

the world.

New

York, Montreal, Toronto, Ottawa, Hamilton, Kitchener,
London

(Ont.),

Winnipeg,

Calgary and Vancouver

40

(1404)

The Commercial and Financial Chronicle

...

Thursday, March 24, 1955

Many Out of Town Guests Including New York & Montreal

Wm.

Currie, Burns Bros. & Company, Ltd.; Telfer R. Hanson,
Bros. & Denton,
Limited; Guy Major, Major & Company,
Montreal; Hartland W. Gee, Canadian Alliance Corporation,

Burns

Ltd., Montreal

Vic

John

Dolan, James Richardson & Sons, Toronto;
Bill
Ganong,
Richardson & Sons, Toronto; Jim Cadman, James Richardson
Sons, Toronto; Alastair Gray, James Richardson & Sons, Montreal

James
&

Schuler, Burns Bros. & Denton, Limited; Gordon Campbell, Burns Bros. &
Denton, Limited;
Fallis, Frank S. Leslie & Co.; Latham Burns, Burns Bros, &
Denton, Limited; Jim Proctor,
Imperial Bank of Canada; Frank Weller, Wisener &
Company Limited

Harold

Russ

Smith, Gairdner and Company, Ltd.; Frank Munro,
McLeod, Young, Weir & Company Limited;
Simpson, Standard Securities Ltd.; Hap Seagram, Bank of Nova
Scotia; A. C. Stewart,
Toronto
Dominion
Bank; Dave Cassels, Cochran,
Murray & Co., Ltd.

Gordon

Murray

Toombs,

Howard

Wilson,
Si

Gairdner
Dominion

Spidle,

and

Company,

Securities

Collier,




Ltd.;

Howard

Corpn.; Edward A.
Norris
&
Quinlan; Roy

Neville, Gairdner and
Company, Ltd
Robinson, Bartlett, Cayley & Company
Wittstock, Waft & Watt

Jim

Stewart, McLeod, Young, Weir & Company Limited; Doug
Mitchell, McLeod, Young, Weir & Company Limited; Donald G.
Peace, Dominion Securities Corpn. Limited; Bob Trow,
J. H. Crang & Co.

W. N. Hovey, Equitable Securities Canada

T.

W.

G.

H.

Connolly,

Price,
A.

George

E.

Price,

Ames

Sythes,

Greenshields

Burns

&

&

Bros.

&

Denton,

Limited; Howard Whillans, McConnell & Company Limited/
John Parkinson, Deacon Findley Coyne, Limited

Limited;

Evans
&
Co., Ltd.; Bob Robinson,
Walwyn, Fisher
Co., Montreal; Jim Wilson, A. E. Ames & Co.,
Toronto;
Royal Securities Corporation Limited

&

Co.;

Duke

Paul

Fisher,

Morrison,

Fairclough & Co. Ltd.; Bob Meggeson, J. R.
Meggeson & Co. Ltd.; Bob Mills,
Co., Inc.; Gene St. Marie, Canadian Bank of
Commerce; Joe Baxter, Royal Banh
Canada; Denis McBride,
Bell,
Gouinlock
&
Company Limited

of

Number 5414

yolume 181

Continued

(1405)

The Commercial and Financial Chronicle

...

Continued from page

from page 39

relief

39

Canada-Dynamic Domicile of
Enterprise Capitalism

"Our Dignity Is Not

Quota-

secutive

12 Mos. to
Dec. 31,

Dec. 31,

Divs. Paid
—

25%

1.25

much

is

Holding

co.

bronze

bearings,

Cans

vegetables,

the

where

been

a

for

the

Rail

and

to

Canadian

4.4

and

I

Co.,

Ltd

Fairbanks

0.75

19

3.0

25

banks,

Morse

agent

ing

&

Co.

of

manufacturing

rights

ing

of

b22V4

1.00

Chicago

Canadian

invest,

Industries

1.28

27

30*/2

on

allied

reading

particular Bill

transactions be-

had

a

with

Bank

chartered

24*4

banks

mortgage

0.4

products

and

of

Oil Cos., Ltd
Petroleum refining & distribution

Tac.

29

0.50

18%

2.7

11

1.50

31%

4.8

"The"
of

Ry. Co. "Ord"

private

railway

the

—

Automotive

Celanese
Yarns

and

Silk,

silk

of America.

16

&

and

10

1.00

price

prior

represent

to

Dec.

31,
3'/o

to

Dec.

publication

blO

prices

sale

and

ask

and stock transfer,tax. The elimi-

nation of, th,is grossly unfair tax

exchange board rulings.

industry has meant a directIn 1949, a general study of the savings of considerable importance
Dominion Income Tax Act as it to our members, and because it
affected investment dealers was was an expensive tax to collect
made and a brief submitted to its removal has cost the country
Ministers of Finance and National very little. We are still pressing
Revenue. This was instrumental for its complete removal in Onin bringing about the extension tario and Quebec. It is unlikely
on our

other industries have

that

ever

Continued on page

&

Si»enc® Se
Investment

Milts-

Canodion

annually at

to

very

a

115

BROADWAY

affiliated w

debt

€«•
^ ^

VOuK <>,

ilk

all

cost.

last

the

or

quotations

are

of

our

rea¬

mem¬

publication

on

quantities

their

would

Mill*,

prohibitive.

cost

insurance

Group

of

a

small

and

sale

as

Many

bers could not undertake produc¬

10.0

make
Bid

funded

of

available

made

tion of such

1954

31,

copies

recent

ns

cashmere

date.

to

.

in

was

initiated

was

s^rc&Co*

1954.

Add

that

amendments

.

saving

brought about by the
elimination of the Dominion bond

years

interest.

mutual

of

17,000

sonable

Co., Ltd

wool,

secured
various

successful in having'

Places of payment increased for
Provincial and provincial guaran¬

teed bonds.
The largest

Extradition

on

own

Quotations

t Adjusted

translate into

for stock

U. S.

late

into

U.

S.

rate of

1948. This was of no

in

funds.

dividends, splits, etc.

§ Adjusted for Canadian-U. S.
a

others

members

§0.625

hosiery

*

—

and

booklets

fabrics

Celtic Knitting

•

associations

of

1.0

accessories, parts, etc.

Corp.

Attorney-Generals

We

wer3

sue-

asso¬

exchanges

problems

68

on

Piw»ipr<;

all

commissions—

I should refer to the

0.70

as¬

dominion

companies

Canada

11

of

eliminated

are

trust

system

Canadian Tire Corp., Ltd

were

having

his

stock

Can.

in

banks.

efforts

Canada—the

investments

ciation—securities

Canadian

our

killed.

was

consultations

Frequently
held

fO.10

and

serious

reversed

Commons,

4.2

(1954)
28

and

have

the

to

trust

Ltd
Chemicals

interest

stand, and the Bill

Canadian Gen. Invest. Ltd.__
type

first

had

brief

effect on the business of from 3 to 5 years for the period
many of our members. The Minis- during which taxpayers may write
ter of Finance finally went back off a loss. Substantial income tax

sell¬

&

chartered

1950,

transfers to capital account from
earned and capital surplus account,

costly

1.7

10.00 a600

25

products in Canada

Management

and

the

tween residents and non-residents

Electric

General

12

passed

Act

for the provincial ^

15% withholding tax on ac-

a

crued

4.5

would

Canadian Gen. Elec. Co., Ltd.
Exclusive

i

Fair¬

for

already

a

+n

opposed the
before the Treaty at Ottawa.
given

were

in the Senate. This

Morse

17
sales

Hntipc

Xreasurers and

which had to do with implement-

Ltd

Exclusive

had

that

Commons

Synthetic yarns and fabrics

Canadian

submitted

rpqs;;nn

try and stop a piece of legisla-

tion

stock

rolling

Celanese

22%

1.00

10

highway

purpose

Securities

drafted.

Banking Committee of the Senate

Car & Foundry Co.,

"Ord"

Watching

consulted in 1946 when

Ontario

new

We

a

President

meats,

etc.

Ltd.

was

representations

made

hours' notice to appear

Canadian

were

ty or regulation. As was the your
case
little over
year ago when

6.5

31

2.00

15

Ltd

Canners

fruits,

which makes
the
association

in

preventing ill-advised legisla-

of

castings

Canadian

cited

have

and

bushings,

In

the distribution through corporate

be

make

subsidiaries

—

6.5

27

1.75

the

and

association:

membership

grain

27

Bear

"phe

worthwhile.

Co., Ltd.

conjunction

tempt to mention some of the ac-

4.9

only at-

shall, therefore

I

Instances without number could

Bronze

Which

Items

lengthy to cover in

too

in

with the bond traders' associations

through legislation a serious tax
liability to Canadian shareholders
of U. S. companies, resulting from

interests

milling

Canadian

practises

following items all necessitated careful watching by your

detail.

Dec. 31,
1954

1954
1954*
Canadian $ * —

10

Canadian Breweries Ltd..—
and

small

consis¬

uniform trading and de¬

on

livery

work

tions of recent years

tion

Years Cash

committees

sistance

% Yield
Based on
Paymts. to

Including
Extras for

No. Con-

tently

To Be Disputed"

Approx.

Cash Divs.

co.—brewing

to

granted

businesses.
Our

Holding

also

was

41

benefit

exchange.

Add 3%

particular

larger firms who had

to

T„no»r»

to trans¬

funds,

or

could

their

have

own

group

Asked,

plan, but

b Bid.
nsNot

shown.

all

Continued

on

Gairdner %
320

We

of great, benefit to

Mil»<-®,fJ.i..-Wemb

42

page

was

the smaller firms in the asso¬

TOUONT0

ciation.

Company Limited

Bay Street, Toronto, Canada

provide

a

M£Leod,Youmg,Weir & Company

complete service for corporate
Private enquiries from

financing in Canada.
dealers

LIMITED

are

Underwriters and Distributors

invited.

Canadian Investment
Since 1921

Members
The Toronto Stock

Exchange

Vancouver

Stock

Montreal

Stock

Exchange

Canadian Stock Exchange

Winnipeg Stock Exchange

Exchange

of

Securities

American Stock

.

.

.

offers

icing

Exchange

of

(Associate)

the

complete facilities for serv¬

investment

American

investors

requirements
seeking

op¬

portunities to invest their funds in
established Canadian companies with

growth potential.

Affiliate

private teletype
in principal
of Canada and to The First

Our facilities include

Gairdner S
40 Wall

wire

Company Inc.'

cities

service

Boston

Street, New York 5, N. Y.

to

offices

Corporation, New York.
Inquiries invited

Member:
The Investment

Dealers'
Association

of Canada




Montreal

Kingston

Quebec

Calgary

Vancouver

Hamilton

Kitchener

London

Edmonton

Winnipeg

Head Office
50 KING STREET

New York

WEST, TORONTO, CANADA

EMpire 4-0161
MONTREAL

f

OTTAWA

WINNIPEG

LONP91

HAMILTON

VANCOUVER

Private wire system

CALGARY

KITCHENER

QUEBEC

NEW YORK

,

42

(1406)

The Commercial and Financial Chronicle

Mountain States Sees. Adds

Joins E. I. Shelley

(Special to The Financial Chronicle)

Continued

Thursday, March 24,

..

.

(Special to The Financial Chronicle)

DENVER, Colo.—Verlyn J. Kane
has

joined the staff of Mountain
States
Securities
Corporation,
Denver Club Building.

from

Continued

41

page

"Our

DENVER, Colo. — Vincent J.
Beck has joined the staff of E. I.
Shelley Company, First National
Bank Building.

been

subiected

such

to

41

page

Ganada-Dynamic

Dignity Is Not
ke Disputed"

To

from

Domicile of

Enterprise Capitalism
Approx.

Cash Divs.

unfair

an

% Yield

Including

and

discriminatory

and

tax,

its

removal last year was the cumula¬

We will

of

the

Minister

and

Someone

Canada

the

people

Such

years.

be

Expiring April 29, 1955, at Current Market

hard

by

Affiliated offices in fourteen cities in Canada and England

edu¬
pro¬

operate successfully.

<

So

have,

much

too

of

me

was

if

we

of

having

the

sales

dogfood

a

manager

or

dress

the

a

manner

meeting,

Wide

life

for the

and

him

of

his

one

in

he

produce,
to

MEMBERS MONTREAL STOCK EXCHANGE

ask.

and

in

the

Wide

concluded
"our

me.

Page 51

1.50

143

1.0

22

1.20

31

3.9

107

0.80

23 y2

3.4

19

1.50

27

5.5

18

1.10

17%

6.1

20

0.70

12

5.8

and

chemical

fer¬

etc.

and

Toronto

gas

area

Glass

variety

distributes

of

Co., Ltd.

glass

containers

Corby (H) Distillery Ltd:"A"
Holding

reverence,

and

and

Cosmos

operating

cotton

However,

spirits

prior

represent

to

Dec.
*

a

heavier

grades

of

duck

Quotations

price

question I would like
With
all
our
splendid

one

co.—al¬

Imperial Mills Ltd._

Manufactures

I can, quite under¬
admiration for our

for

on

81

endowment

silver,

Consumers

•

there is

Starting

Toronto

cohol

your

Paid Consecutive

Mining &

Manufactures

the

who either believes

explosive

"Gentlemen,
stand

NEW YORK

31,

Add

3%

to

that

Dec.

31,

date.

1954

sale

Bid

and

S.

prices

or

the

last

funds,

ask

quotations

are

1954.
translate

into U.

Asked.

MONTREAL

Continued

on

page

43

b Bid.

Interested
in Canada?

Then

Commercial lo

you'll be interested

in the Commercial Letter

published monthly by

Greenshields & Co (N.Y.) Inc

The Canadian Bank

of Commerce.

Investment Bankers

Each issue contains articles
on

Specializing in Canadian Government

Canadian business

and
new

and

Provincial, Municipal and Corporate Securities

industry; details of

developments; facts
figures

economic

on

64

the

on

Canadian

Canada.

Your business letterhead

request

will bring

you our

Street

our

OF COMMERCE

Business

Development Division,

Business established

1910

Head Office—Toronto

New York

•

San Francisco

Seattle

King St., W., Toronto.




Affiliate

Greenshields & Co Inc

THE CANADIAN BANK

Commercial Letter each
month. Write

25

Wall

scene.

Keep up-to-date

and

more

•

•

Los

Angeles

Portland, Ore.

than 680 Canadian Branches

7.1

Consumers' Gas Co. of

of production
psychology

tongue

zinc,

tilizers,

the

to

who stepped to the rostrum with,

64 WALL STREET

8i/2

policies

Lead,

Applause greeted the president,

LIMITED

0.60

elbows,

Smelting Co. of Can. Ltd.

Chief."

LEGGAT, BELL, GOUINLOCK

conduits,

of

range

Consolidated

its

the sales

and

^eulogized

"Gentlement,"
with

INCORPORATED

18

7.7

bl3

Ontario

Confederation Life Assoc

saying or realizes that
his job is at stake.

GOVERNMENT, MUNICIPAL

BELL, GOUINLOCK & CO.

1.00

grain

Second Table

what he is

AFFILIATES

13

3.6

8y4

Dividends From 5 to 10 Years Appear in the

fair

very

products,

from

dripped

CORPORATE SECURITIES

0.30

Listed Companies Which Have

have

and distribution. Sales

AND

5.9

couplings, etc.

president had been evoked.
The president was about to ad¬
manager

CANADIAN

b4.60

company

of enthusiasm

its

skies of his mastery

OF

Collingwood,

electrical

Rigid

its annual pep con¬
under the whiplash

and

company,

DISTRIBUTORS

in

elevator

trouble, which reminds

stimulation

UNDERWRITERS AND

0.27

14

Conduits National Co., Ltd.__

dis¬

can

shouldn't

we

that

vention,

1920

6.4

machinery

&

story.

a

Seems

STREET WEST, TORONTO

implements

Farm

Business,

said, is "making

profit."

a

should

LIMITED

al5Y2

26

Collingwood Terminals, Ltd.

tribute what the people want and

BELL, GOUINLOCK & COMPANY

1.00

getting something people want or
should have and selling to them
at

BUSINESS ESTABLISHED 1889

ESTABLISHED

an

has

2.7

British

four

for

co.

Operates a 2 million bushel

someone

46

breweries

Columbia

Basically, business is simple, no
how difficult it might be

to

25 KING

forward

holding

Cockshutt Farm Equipt. Ltd.

matter

Boston

1.20

1
A

as an

grams?

Incorporated

New York

3.1

10

Ltd..

Ltd

Breweries

Coast

question:

a

public relations

cational and

A. E. Ames & Co.

bl6ya

juices '•

and

Wines

industry and as individuals if we
hadn't filed briefs, talked to offi¬
cials and pressed

0.50

20

Wines

Chateau-Gai

the

over

position be

our

1954

—

fiduciary business

General

observation could

an

answered

best

What would

in
work

Co

Trust

Chartered

small

seem

many

so

31,

interests

done

by

Dec.

1954*

Canadian 5 *

on

Paymts. to

tion

Dec. 31,

insurance

co.—large

Investment

Based

71

Central Canada Invest. Ltd._

observe that the

may

tangible benefits
comparison with

IIIMITS

and

31,

1954
—

Ottawa

in

Dec.

Divs. Paid

associates

Finance

of

department officials
and at Queen's Park.

Bell Telephone Co.
of

Presidents

Past

to

Quota-

12 Mos. to

secutive
Years Cash

tive result of many representations

buy

Extras for

No. Con¬

Montreal

Ottawa

Quebec

Sherbrooke

Toronto

as

sale

of

1955

Number 5414

Volume 181

.

"Our

Cash Divs.

Including

Quota-

Based on

tion

Paymts. to

Dec. 31,

Dec. 31,

Dec. 31,

1954

1954»

1954

Extras for

Years Cash
Divs. Paid

—

Crown Cork & Seal Co.,
Bottle

for

caps

Crown

Crow's

force

2.8

180

5.00

55

Co

Trust

producer

on

Coal

slope

3.8

105

4.00

37
/

.

Canadian Rockies

the

Distillers Corp.-Seagrams

a

complete

whiskies

of

line

331/4

1.70

18

5.1

and

gold

35

of law and

Corp.,

February

To¬

under

1955

the

as

Bank on page 44.

See advertisement of Toronto-Dominion

a

Dominion

Bridge Co., Ltd.__

Bridges,
steel

all

of

Dominion

f0.68

42

to

kinds

Engineering Wks.,

variety

well

of

machines

that

Towels,

Fabrics, Ltd

Dominion Foundries &

steel

6.3

201/4

2.9

variety

primary

of

Wide

Let's take

Co., Ltd.___

38i/2

fl.425

37

ciation,

variety of glassware

Co.,

range

Ltd

of

68

linoleum

2.00

5.7

35

and

13

meat

&

29%

0.70

of

cotton

48

71/2

0.30

price

This

*

Add 3%

t Adjusted
d The

to

Dec.

31,

date.

that

sale

1954

Bid

or
the last sale
'quotations are as of

prices

ask

and

to

Bank.

Bank

and

data

funds.

U. S.

dividends,

February,
The

their

men

as

CORPORATION BONDS AND STOCKS

a

talents

of

started

Life
was

series of 21

investment

given

request

was

Prices

furnished
Funds

Canadian

Company.

the original course

on

all Canadian Cor¬

in

North Amer¬

Assurance

supplied

information

covering

porate Securities.

banking,

which

of

Authentic

the

1946-47,
a

Canada

from

or

New

delivery in the

present program

all

for

issues

in

delivery

York

in

Funds

for

for

United States.

The annual meeting of 1947 rec¬

translate into

for stock
in

CANADIAN

GOVERNMENT AND MUNICIPAL BONDS

stemmed.

1954.

Dominion

effective
ion

represent

prior
31,

young

profession

express

on

which the

Dec.

this

winter

first

ican

fabrics

Quotations

look at another his¬

the auditorium of the

4.0

and

yarns

to

the

lectures
the

•

foregoing bene¬

benefit

to

Association

2.3

chain

Dominion Textile Co., Ltd.__

EDMONTON

REGINA

KITCHENER

LONDON, ENG.

LONDON, ONT.
CALGARY
VICTORIA

HAMILTON

OTTAWA

JOHN

their energies.

In

grocery

range

a

choose

medium

oil¬

and

Dominion Stores Ltd

Wide

HALIFAX

VANCOUVER

WINNIPEG

MONTREAL

SAINT

QUEBEC

which

continue

cloth products

Operates

TORONTO

in the life of our Asso¬
was
planned for
and which we hope has and will

3.7

who
Wide

work has

years'

torical day

Glass

Dominion Oilcloth and Lino¬
leum

part of this

Montreal Stock Exchange

Canadian Stock Exchange

rapidly.

progress more

wide

products

Dominion

40

of

fits, the Association has taken di¬
rect steps which should help them

Steel
0.60

Members of

The Toronto Stock Exchange

therefore,

submit,

I

the constructive

in addition to the

18

Wood, Gundy & Company

we

been made for them too. However,

etc.

Ltd.
Makes

9!/>

0.60

28

draperies,

tapestries,

and

plans

chance

better

much

a

the

for their families

and

Association's

Dominion

Established 1905

wish to make both for

realization.

and

equipment

Limited

have
If

future.

then

today

may

have

4.2

24

1.00

their

establish

they

Wood, Gundy & Company

solid foundation on which

themselves
13

affiliated with

of

cornerstone

profession, they would

very

build

Ltd.
Wide

3.4

20

structural

and

cranes,

Street, Chicago 3

my

-

our

New York 5

should be its

I opened

saying

by

established

Bank.
•

3.0

43

we

exemplar.

that I hoped
my story would be of particular
interest to the younger men, and
they might ask just how these ac¬
complishments affect them. If this
principle
of fairness could
be

remarks

Toronto-Dominion

of

name

of

Bank

the

1.30

84

BANK d

with

in

ronto

5.3

14.00 b265

15

Ltd

holding company

DOMINION
Merged

foremost

Gundy & Co., Inc,
Wall Street,

105 West Adams

of

thread
tems

Investment

14

fairness
is the white
running through all sys¬

ciple

4.0

17.50

0.70

producer

Dominion and Anglo Invest¬
ment

W ood,

a

plication of the principle of fair¬
ness from its members.
This prin¬

Ltd

Mines

Ontario

ASSOCIATION OF CANADA

many—the public

savings of

be, to demand insistently the ap¬

gins

Dome

INVESTMENT DEALERS

to

try

right to expect and indeed
the aim of our Association should

include

co.—interests

holding

must

have

Ltd.
A

STOCK EXCHANGE

"dogs don't like

chorus,

originate and
distribute products that the public
not only like but should have.. As
a
matter of fact, in an industry
such as ours where we deal with

Co.,

Pass

Ltd

the

MEMBERS

TORONTO

THE
THE

We

western

Nest

in

E. EVELYN

why?"

me

BUILDING

J. W. SEAGRAM

it!"

fiduciary business

General

of

tell

BANK

1898)

TORONTO

"Sure," bellowed the entire sales

dustry

Coal

DOMINION

our

Can you

in¬

beverage

the

4.5

COMPANY

&

(ESTABLISHED

enthusiasm, and our
loyalty, we stand only seventh in
this great country in the distribu¬
tion of dog food. Only seventh—
with
this
magnificent
product.

methods,

—

44

2.00

26

Ltd.

Canadian $ *

SEAGRAM

Dignity Is Not
be Disputed"

To

Approx.
% Yield

12 Mos. to

No. Consecutive

The

1955,

Bank

of

Toronto

are

for

the

and

P2.uk.

Dominion

former

Continued

on

page

appointment

Director

full-time

became

merger

thereby forming The Toronto-Domin¬

shown

the

ommended

splits, etc.

the

laid

educational

b Bid.

of

groundwork

program.

Continued

44

of

WISENER

a

Education

for an
73 King

In the Fall
on

page

Street West
Telephone

44
Members

Burns Bros. & Denton, inc.
37 Wall Street, New

Tel.:

York 5

UNDERWRITING

—

DISTRIBUTING

—

TRADING

Dept. direct

Investment

•

Toronto, Canada

EMpire

lines;

6-5251

EMpire 3-7218

Dealers' Association of Canada

Midland Securities

TWX: NY 1-1467

Dlgby 4-3870

COMPANY

and

LIMITED

Trading

members:

1

The Investment Dealers'

Canadian Government,
and

corpn. limited

Association of Canada

Municipal

Corporation Securities

Securities

Canadian

The Midland Company
Affiliated with:

Burns

Bros.

&

member:

Denton

The Toronto Stock Exchange

Stock orders executed on

all Exchanges

Limited

Members:

The

Investment Dealers'

Association

o) Canada

Toronto, Ontario:

Burns Bros. &
Members:

The

Company Limited
Toronto

Stock

Exchange

50 King Street West

London, Ontario:

Huron & Erie Building

Sault Ste. Marie, Ontario:

110 March Street

Montreal, Que.: 215 St. James
-

43

of

Canada-Dynamic Domici
Enterprise Capitalis
.

(1407)

Chronicle

The Commercial and Financial

.

.

Toronto




•

Montreal

•

Ottawa

•

Winnipeg

Private

Wire to Eastman,

Street West

Dillon & Co., New York City

44

(1408)

The Commercial and Financial Chronicle

Continued

from

"Our
of the
sard

same

lecture investment

Mr. H. L. Gas-

year,

Our
been

planned by

in

many

and

investment.

take

to

you

rapid

While

not

Enumeration

us

enumerate

(7)

We
in

courses

of

our

(2)

have

made

(8)

(3)

(4)

available

students

have

Share

intra-mural

public
and this

or

investment;
month this figure is being raised
to 13 when the University of New
on

its

first

been

translations

in

Canada's

have

distributed

in

(11)

The

monograph

ment Careers" and

we

tions

and

tention

realize

that

fact

the

at

Saskatchewan

and

"Invest¬

11 years

were

joined

coincides

not

tence of

only with

of

most

look

of

us

and

have

we

with

discharged

them in

We have proved

and in

proved
on request

is

Loeb, Rhoades

&

Co.

Members 7^ew

Torl{ Stocl( Exchange and other
Leading Stocl( and Commodity Exchanges

42

WALL STREET

Private Wire
their

NEW

System

connections

in

YORK

and

5, N.

Y.

in

Cities

Ford

Motor

Automotive

the

Engineers

their

Co.

Second Table

of men, I

involves

and

ef¬

Fraser

service

Companies,

responsibility

it

—

conduct

our

variety

Gatineau

rant,

or

of

PITTSBURGH,
J.

^TORONTO DOMINION BANK

Marasco,

BEST

E

BANKING

IN

utensils;

now

amalgamated

offering
The
452

a

The Toronto-Dominion

as

Complete, Canada-wide banking

Bank's broader facilities

branches

across

include

a

service.

network

Canada, offices in London

New York and
correspondents

of

and

throughout the world.

SAN

Manages

a

tribute

Co.,

155

bers

of

of

New

Calif.—

Stock

Toronto

Agnew

Street,
York

New York

THE

3

textile

49 Wall Street

TORONTO-DOMINION




17

0.25

4.00

6.2

0.60

18V2

3.2

16

0.20

3.20

6.3

13

1.15

bl2%

9.2

0.80

8Y4

9.7

12

1.50

b34

4.4

1.40

60

2.3

allied

&

Assur. Co.-

life,

accident

and

variety

of

products

wire

General

Hallnor

Mines,

Ontario

as

Ltd

Cotton

variety

-

Co., Ltd.

textile

of

products

Carpets Ltd
in

and

seamless

'Wilton"

"Axmin-

rugs

Hayes Steel Products Ltd—
Wide

variety of automotive parts

Hinde
of

and

Dauch

Canada

Wide

'

gold producer

Harding

&

San

26

fiduciary business

„::4

Paper Co.

Ltd

variety

21
paperboards,

of

boxes, etc.

Hollinger Consolidated

of

Mines,
Ontario

Gold

Ltd.

—,

39

0.24

16.75

1.4

20

—

4.00

53%

7.4

gold producer

King William Street

Hooker &
SAN

The Best in

1.0

11.1

-

dis¬

policies

Hudson Bay

Agency:

bl93V2

a9

Ltd.

which

products

of

range

health

mem¬

and

Exchanges,

2.00

3.8

"

Wide

April 1.
LONDON BRANCH:

subsidiaries

Specializes

to Admit

Shuman,

Sansome
the

Francisco

HEAD OFFICE:

in

55

19

Stores

Great-West Life

Stewart, Jr. will become

partner

1.00

158

rubber

goods

Monoky,

Corporation

FRANCISCO,

Scott H.

6.00

equipment;

synthetic

Mackay

Wide

Shuman, Agnew

6.5

etc.

and

Hamilton

Bank,

10%

Canada, Ltd—

ster"

are

0.70

"B"

Pennsylvania, 417 Grant Street.
The Bank of Toronto and The Dominion Bank

14

restau¬

Greening (B.) Wire Co., Ltd.

Pa.—Augustine

Planning

4.4

28

hotel,

hospital

and

King has joined the staff of In¬

SERVICE

27%

Eastern

Steel Wares Ltd

Ralph P. Wiethorn and Calvin M.

vestors
TW

1.20

17
in

energy

Guaranty Trust Co. of Can._

E.

3.8

t

Gordon

Planning

Stephen

26

products

con¬

form to its high standards.

With Investors

1.00

Co

Power

Natural

But like

practise

11

Goodyear Tire & Rubber Co.

does

Association

our

to

Page 51

lumber

Canada

themselves

way.

Ltd
and

paper

Hydro-electric

should not be blamed for the fail¬
some

on

30

Wide

employees

would offer this obser¬

so

3.6

%

products

exceptional association

will

Starting

peace

vation—membership in the IDAC

...

19

Dividends From 5 to 10 Years Appear in the

Wide

Are Now One

0.70

contrac¬

Listed Companies Which Have Paid Consecutive

the

refrigerators,

of

4.1

Canada

of

general

ana

ade

ure

102

manufacturer

Household

Christianity,

CANADIAN BANKS

4.25

Canada,

tors

General

an

of

Ltd.

investing public in Can¬

will be directed

Distinguished

5.4

a

valuable

a

Co.

Foundation

that neither damage nor criticism

Two

28

us.

guarantee the public a high
standard of morals on the part of
all. We earnestly hope our mem¬

$

§1.50

we

ada.

bers

5.6

Canada

"B"

not

as—

28%

pic¬

unique
We
have

are

society.

members,

is

motion

Inc.

Association has performed and
its

of

Operates large candy chain

In concluding that The Invest¬
ment Dealers' Association of Can-

Branch Offices, Correspondents and
throughout the United States

to
90

we

effectiveness

our

performing

to

operator

Fanny Farmer Candy Shops,

ficiency by survival. I submit that
our

Carl M.

that

war

useful

and

Prospectus

1.60

steel castings

ture theatres in

confidence.

successfully without
the fact that

have

future.

overseas.

2.1

subsidiary

Corp., Ltd.
Largest

past—we will accept them in the

investing in Canada and

cobalt;

copper,

produces

honorably rectified and

recognize

We

23%

Mines,

Famous Players Canadian

the exis¬

have social obligations both to our
communities and to our country.

A norvdiversified mutual fund

0.50

15

Nickel,

economic system cannot

function
We

1.9

22

Nickel

Ltd.

Ltd.

ahead

The free

tf/ Sctn ac/aj,

35

endowment

&

policies

youth

our

have been
we

0.65

27

life

our

and exuberance
made mistakes—most of which

we

9.3

20

of

line

Falconbridge

just begun.
In

16

10%

&

cleaners,

vacuum

Canada

of

Association, but will
have taken place during the life¬
time

§1.00

4.8

purifiers

Wide

Con¬

September,
1905.
Looked at another way—Canada's
great economic surge in the past
40 years, in which our members
have played an important role,

institu¬

air

old. Alberta

federation

to

11

31

Ltd.

Equitable Life Insurance Co.

time

are today
much worldwide at¬

so

1.50

6.1

trust business

Corp.

"Electrolux"

we

that

formed, two

was

28

8%

0.50

22

Electrolux

very young country
association. It is dif¬

Association

attracting

These and other activities of the

public

the

—

air circulators, etc.

Invest't Trust

investment

General

a

young

to

material

development,

our

1954

Canadian $ *

11

Economic

the

of the provinces which

the booklet "A

educational

a

our

Canada.

across

still

are

to

due

Paymts. to
Dec. 31,

1954'

floor

washing

polishers,

has

rapidly

her

overlook

and

Career
in
Finance"
describing
employment opportunities in our
libraries

of

probably

and

business have been distributed

of

is

Because of the rapidity

and scope

have

Canada

days

tion

Dec. 31,

31,

1954

Co.,

machines,

Based on

eco¬

Electric

developed

abundance

resources.

ficult

Growth"

English
5,000 copies in French.

com¬

successfully.
12 universities are offering

offers

French

our

maturity

future,

early

our

rich

including

many

courses

Brunswick

"Investment

er" have been distributed.

II.

their

courses

copies

Definitions"

the

Machine

Ltd.

of

financial

and

in

still

(10) 64,000 copies "To Help You

1,203

either

and

attainment

nevertheless

(9) 35,000 copies (envelope stuffer) "What Is an Investment Deal¬

2,516 employees of member

pleted

nomic

since

80,000

10,000

public speaking to

and

While

Washing

Easy

ing.

our

firms have enrolled in educational
I

our

been distributed.

of

young men.

courses

by

copies "Putting Your

5,500

Terms

accomplishments in this field:
(1)

given

Dollar to Work" have been printed
and sold.

a

of

some

been

Dec.

■—

reputation worth protect¬

a

Quota-

12 Mos. to

secutive
Years Cash

built

good foundation and devel¬

a

oped

groups.

Accomplishments
Let

on

% Yield

Including
Extras for

No. Con¬

Divs. Paid

members to clubs and other large

guar¬

they give you
good start in the right direction.
success

An

have

has

Association

Our

Approx.

Cash Divs.

willing to work

are

and there is no substitute for hard

lectures in connection with the

IDAC

related

as

Canadians who

work.

a

through

tour

provide.

can

Banking Service

BANK

John G. Eidell
come

221

of

a

Fay Admits

FRANCISCO,
on

Manitoba

•

Montgomery Street, members

cisco

New

York

and

San

Exchanges.

Ltd
& zinc

represent

prior

to

Dec.

31,
3%

to

Dec.

31.

date.

1954

Bid

sale

and

ask

prices

late

into

U. S.

b Bid.

•

■

.,

the

last

are

sale

as

of

;

translate into

Asked,

or

quotations

1954.

Add

that

producer

U.

§ Adjusted for Canadian-U. S.

Fran¬
a

Stock

Co.

copper

Quotations

price

partner in Hooker & Fay,
♦

the

Mining &

Smelting

Calif.—

April 1 will be¬

24,1955

43

page

The rewards will be generous for

courses on invest-

To date 1,489 students have

(6) Approximately 500 addresses
or

generation

our

Canada's progress over the next
several
decades
seems
assured.

enrolled.

business.

phases of finance

anteeing

mest.

of wide ex¬
These

men

our

enable

courses

studied

correspondence

have

courses

in Saint

(5) University of Toronto offers

years

seven

educational

perience

to

in

course

from

Thursday, March

Canada-Dynamic Domicile of
Enterprise Capitalism

the most able and ambitious peo¬

ple

John.

this

fill

to

great
progress has been made and much
has been accomplished.
And

post.

Continued

vide ample proof that we are ready
to
recruit, educate and develop

Dignity Is Not to Be Disputed"

appointed

was

Association and its members pro¬

43

page

...

funds,

S.

funds.

rate of exchange.

Add 3%

to trans¬

Volume 181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1409)
1

Continued

Canada-Dynamic Domicile of

Enterprise Capitalism
Years Cash

Dec.

Divs. Paid

& Erie

Lends

money

security

Imperial

first

on

90

on

Dec. 31,

Dec. 31,

1954»

31,

Paymts. to
1954

Canadian $ *

6.00

—

Bank
234

79

1.50

50

3.0

term

oil

70

1.50

2.1

en¬

policies

Ltd

subsidiaries

55

comprises

0.90

40

2.2

fully

Ltd.

enterprise

and

Varnish

43

0.475

10y2

4.5

cigarettes

Color

and

Ltd,

14

1.20

b23

5.2

etc.

Inter-City Baking Co., Ltd.—
Operates

bakeries

Ottawa,

and

Canada,

1.05

7.0,

near

2.90

mines

57

5.1

nies

in

producer

development

&

gas

electrical

1.00

27%

3.7

Management

11

§1.45

37

3.9

of

Ltd.

11

1.50

b321/£

4.6

investment

ances,

line

of

1.00

bl4

7.1

11

1.50

b21%

6.9

16.50

4.8

Journal"

home

parts and repairs

General

Lake

of

Co.,
Mills

Lake

1.00

22

4.5

flour

Woods

Milling

gold

15
&

commercial

1.60

37

0.10

44

3.6

feeds

6.05

1.7

quick

day and suitable

per

mill

buildings are presently being
designed to treat a minimum of
3,000 tons of ore per .day. A shaft
was
started
on
Algom's Nordic
Lake orebody in
December, 1954,
and again, a plant is
being de¬
signed to treat a minimum of 3,000

and

easy expansion to
1,500 tons per day. The next big
step was finalization of a contract

whereby Eldorado Mining & Re¬
fining Limited agreed to purchase
uranium
total

concentrates

having a
$55,000,000, ship¬

value

of

to

start

ments

later

not

January, 1956. A contract
to

Foundation

ada

in

of

tons

than

was

of

Lake

let

ore

You

con¬

have

mining and con¬
centrating plant designed by Way,
construction to be completed by
May, 1955, with the ultimate goal
being production by September,

the

1955.

Almost

way,

and it

all

details

16

are

of

undoubtedly read
financing agree¬

these

two

mines into production.
simultaneously
an
an¬

nouncement
fect

was

made

that Eldorado

to

which

has

been

In

a

Continued

on

progressed

WILLS,

the

written

&

Algoma

has

area

leaps and bounds.
The following highlights will il¬

1953,

staked

by

claims

1,400

E. W. BICKLE
J. E. KENNEDY

Dome.

G. L. JENNISON

T. G. DREW-BROOK

HUGH C. CAYLEY
PHILIP C. TIDY

44

KING STREET

C. R. SLIPP

EXCHANGE

WEST, TORONTO

were

managed
Technical

with

Consultants

East

COMPANY

MEMBERS OF THE TORONTO STOCK

companies

associated

or

BICKLE

INVESTMENTS

very

in

and

Preston

A

Exploratory

started

on

many

work
was
claim groups

1953, the main programs
that time being on properties
and Algom.

at

0.24

4.15

5.8

ANDRAS, HATCH G- McCARTHY

Pronto

Members:

(3) Diamond drill exploration
during 1953 rapidly outlined large
tonnages
of
uranium
ore
on

The Toronto

Stock

Exchange

Investment Dealers' Association of Canada

prop¬

erty and the Algom Nordic prop¬

During

the

Pronto

clined shaft

ore

indicated

an

valued

at

over

503

re¬

U:,Oy

$50

SUITE

of

part

320

BAY

STREET

Telephone EMpire 3-9151

TORONTO 1

mil¬

lion.

Add

early

announced

having

serves

represent pec. 31, 1954 sale prices or the last sale
price prior to that date.
Bid and ask
quotations are as o|
Dec. 31, 1954.
S.

funds.

$ Adjusted for Canadian-U. S. rate of
exchange.
late into U. S. funds.

Add 3%

trans¬

to

Toward the end of 1953, an
ore

on

page

46

put down

was

in¬
the

on

H. WILLIAM HATCH

SIDNEY

C. HETHERINGTON

at Pronto to obtain fresh

zone

material

ore

Continued

tests.

The

slope

depth

for

shaft

of

drift rounds

metallurgical
driven

was

55

feet
taken

were

to

a

and

two

east

and

west from the bottom of the shaft.

Large samples of the
sent

ore

material

to

Ottawa, to the Uni¬
versity of Toronto and to the Uni¬
versity of British Columbia.
It

were

SPECIALIZING

that

found

was

the

material

amenable to treatment by

IN

leaching process,
be employed.
ple

Algom

CANADIAN MINING SECURITIES

In

Uranium

early

canadian

sim¬

a

Enquiries invited regarding Canadian

which will

Government, Municipal and Corporation Bonds
Preferred and Common Stocks

Mines

1954

ore

potential of 7,700 tons per
foot; and on its Nordic
ore body had

bankers bond corporation

inclined
Lake

Limited

property the

<

BAY

STREET

••

TORONTO

1

-

Members: Toronto Stock Exchange
Canadian Stock
MONTREAL:

400

ST. JAMES

ST.

TELEPHONE

EM.

3-4236

Montreal Stock Exchange
Exchange
•

W.,

•

PLATEAU

2795

-

been

drilled for

feet with extensions open.

(4)

In

March,

Uranium

Mines

its

nounced




Wire:—New

York

&

Montreal

develop the

1954,

diamond

started

to

June,

an¬

sink

shaft

a

to

body outlined by

drilling;

in

44 King Street West, Toronto
Pronto

Limited

intention

ore

Business Established 1912

length of 4,000

a

development-production
Private

securities

is

Algom Uranium
Mines, Limited, announced that
diamond drilling had outlined an
orebody over 7,000 feet long with
an
average thickness of 12 feet
on its Quirke Lake property, with
an

Cradock Securities Limited
170

page

period of less than

the

years,

content

to translate into U.

the

this shaft

1954, and

was

com¬

kitchener

london

hamilton

Members of

The Investment Dealers' Association of Canada
The Toronto Stock

Exchange

ef¬

Mining & Re-

well under

story

(formerly

start

a

more

the

with

Pronto

on

1954,

Quotations

3%

Quirke
to

recently announced by Al¬
gom, under which over $40 mil¬
lion is to be provided to bring

that produc¬

appears

vary

scheduled

ment

The underground and construc¬
are now

is

Nordic

the

tion programs

day. The

per

mine

production in July, 1956, and the
Lake mine in early 1957.

Company of Can¬

September, 1954, for

struction

April, 1953, when the first drill

erty.

producer

Quebec gold producer

*

ore

respectively.
you

Pronto, the Algom Quirke

Mines, Ltd

Lamaque Gold Mines Ltd

•

for

initial capacity of 1,250

an

of

Peach property) intersected U;tOH
values of importance. It is a story

of

brewing business

Shore

not

tons

during

Ltd.

Ontario

0.80

10

Ltd

the

apart,

familiar

(2)
15
gold producer

Labatt

one,
but two, mines, each very
large. Algom's Quirke Lake orebody is now being developed by
a
shaft, started in July, 1954, and
underground work; its mine and

that

staking rush of
major proportions was thus pre¬
cipitated.

appli¬

Ltd.

John

of

Mine

Kerr-Addison Gold Mines

Ontario

above for
Pronto, and will surpass
Pronto insofar and scope of
opera¬
tions is concerned. Algom
has, not

This

M.

having

Mines

Pronto. Nevertheless it has
dupli¬
cated
all
the
steps
mentioned

followed

was

Uranium

in

developing its mines
schedule
slightly behind

pound of U;i08 per
bodies are about 15

most of

sure

less

by

Kelvinator of Canada, Ltd.__
Complete

ore

miles

tember,
38

Ottawa

J/2

Nordic and

does

1954.

announcement

an

(1) From May, 1953, until Sep¬

Publishing Co. of
"The

Pronto,

lustrate this statement:

Ottawa, Ltd.
Publishes

22

quickly.

trust

Journal

ton; these

two

type

eight

feet.

bodies

ore

than

hole

&

compa¬

Foundation

20

December,

Algom

a

which has unfolded since the date

Alberta

Investment

bodies

is extremely uniform, as
well, not only within a single ore
body, but also between ore bodies
many miles apart..
The average

or

Co.j

International Utilities Corp._
&

very

a

ore

sibly 10,000 feet along the dipslope of the ore.
The uranium

I'm

refiner

Management

in

ore

three

They are all
still open to the greatest depths
explored
by
diamond
drilling
ranging from 2,000 feet to pos¬

and

37
oil

almost

and

Ltd.

natural

this factor

later, Pronto, the Algom's Quirke and Algom's Nordic,
have continuous lengths ranging
from 4,000 to 7,500 feet, and the

more

Sudbury, Ont.

American

of

The

grade of the

co.—Pri¬

International Petroleum

South

bl5

of
21

operating
at

time.

Quirke
Co.

Ltd.

&

smelters

16

Toronto,

Nickel

operations

mary

in

Montreal

International

Holding

of

content

Varnishes, lacquers, enamels,
paints,

tonnages

short

and

"Ord."—

cigars

(5)

scheduled,

as

Limited, is
on

Way & Company had been
engaged to design a concentrator

thickness averages between

Imperial Tobacco Co. of Can¬

Co.

R.

mentioned

life,

of

range

Oil

Imperial

Uranium

and

areas,

in

announcement

Algoma District is distributed
large

pleted

closely by

mineralization

uranium

large
53

dowment and

ada,

those

has helped in outlining extremely

Comprehensive

Tobacco,

the

over

through¬

Canada

integrated

and

Mineralization

&

Imperial Life Assurance Co.

With

Extensive

An

Canada__

branches

District

3.9

Canada

Imperial

Algoma

The

of

will start,
September.

from the Witwatersrand.

155

accounts

Operates

of

the

mortgage

deposit

operates

&

debenture

out

Mortgage Corp.

Based

tion

1954
—

Huron

% Yield

Quota-

12 Mos. to

secutive

tion

Developments in
The Algoma District of Canada

Approx.

Including
Extras for

29

page

Uranium Ore

Cash Dlvs.
No. Con-

from

45

46

4

46

The Commercial and Financial Chronicle

(1410)

Continued

jrom

page

500,000 tons of uranium ore hav¬
ing a gross value of about $10

45

Continued

from

...

Thursday, March 24, 1955

45

page

million.

Uranium Ore Trends in Canada's Algoma

District

Ma^iy other
derstood

had contracted to

fining Limited

$206 million.

properties in the area,
although not so far advanced, ap¬
pear to be on the verge of adding
large tonnages of uranium ore to

the

the

Algoma

has

The possible ore potential
for this property already exceeds
This tonnage must

course,

but previous

perience

in the

this

will

verification

and

Cash Divs.

50 drills

over

were

The

greater

of

about

1,000

feet,

re¬

grade.

progress

part

prop¬

has

of

outlined

by

drilling

about

70

over

the

feet

down

are

and

occurance,

Ltd.

scheduled

for

very

SECURITIES

future

near

1909

the

for

ness

mean

Oper.
kets

in

big

the

busi¬

reserves

ore

0.02

0.66

3.3

32

1.50

68%

2.2

§1.25

60

2.0

19

1.00

bl9

5.2

13

2.75

69

4.0

^

Co.,
...

chain

stores

"self-serve"

of

in

Ontario

Inc.
133

in

Walter

"self-serve"

north'n

M.

food

mar¬

N.Y., Pa., & Ohio

Lowney Co., Ltd.

Chocolate

and

other confection

products

Maclaren

Power & Paper

Co.

Holding co.—newsprint, lumbering
&

interests

power

Listed Companies Which Have Paid Consecutive
Dividends From 5 to 10 Years Appear in the

District.

Algoma

5.1

already

production

indicated

Drill

are

17%

17

"B"

grocery

hole is now in
progress
will
probably
reach a depth of 4,000 feet.
which

0.90

gold producer

Operates

a

mines

—

Ontario &

Loblaw Groceterias

a

one

on

1954

Canadian $ *

16

candy chain in

Ontario

drill
which

property

Dec. 31,

Quebec

and

now

Paymts. to

Candy Shops,

Leitch Gold Mines Ltd

total
contact,

North

on

tion

Dec. 31,

28

Retail

a

belts, involves progres¬
deeper holes. Holes 2,000

2,500

The

IN INVESTMENT

Secord

Ltd.

miles.

between

common

SINCE

Laura

Based

1954-

31,

1954
—

Loblaw
area,

Dec.

Divs. Paid

Drill exploration of the "Basin"

to

& Co.

Appro*.
% Yield
Quota-

12 Mos. to

secutive

12

over

representing
length, along the

sively

Burgess

distributed

are

Extras for

Years Cash

this

of

Townships

Buckles Algoma Uranium Mines

come,

No. Con-

in opera¬

about 40 different

on

Central

DEALERS

work,

exploration

Including

erties.

portedly show an improvement in

ex¬

Charles H.

in

During the latter part of Feb¬
ruary,
14 drill contractors were
working in the Algoma District,
tion,

district indicates

that

or

large area.

a

strike

holes, of

one

by

depths

by closer spaced drill

Canada-Dynamic Domicile of
Enterprise Capitalism

un¬

are

intersections

shallow diamond drill¬ exploration work is concentrated
ing approximately 1.5 million tons along the "Central Belt" and be¬
of
material
earring
about
1.5 tween the "Central" and "North¬
pounds U:i0* per ton to a shallow ern Belts" in the so-called "Basin"
slope depth of about 200 feet. area.
The mining properties on
Two recently completed holes, to which
drill
exploration
is
in
cated

length.

be verified

preliminary
over

mated

Dis¬

indications of a major
exceeding 3,000 feet in

2,000,000 tons.

Porcupine, recently
by
Pardee
Amalga¬
Mines Limited, has indi¬

Acquarius

companies

have obtained

to

radioactive

more

purchased

Denison, with
drill holes completed to

body

con¬

Aquarius Porcupine Property

Consolidated

few

date,
ore

of

reserves

trict.

bearing

remarkably

Other

the

uranium

glomerate beds of the district are
uniform
in
grade,
thickness
and
continuity.

purchase
uranium
concentrates
from Algom to a total value of
over

the

since

for

Second Table

the District, to date, already total
20
million
tons
probable

Starting

on

Page 51

about
and
Members

Toronto

Stock

Investment

Dealers'

Assn.

n)

100

only

Exchange

a

contracts

255

Bay St., Toronto

EMpire 4-8471

•

A

plies
and

already

Fully integrated lumber business;

arranged

total

be

be

used

120,000

are

tons

per

per

&

Co.

the

year

mines

total

of

of

1.68

7.1

10

5.00

b97

5.1

two Toronto motion picture

theatres

Mitchell (J. S.) &
General

employees

for

in

20

Co., Ltd...

house

Eastern

for

1.25

36

3.5

11

supply

Industries

production
a

Owns

total of 200,000 tons

number

3.1

producer

gold

Marcus Loew's Theatres, Ltd.

year.

The

Walwyn, Fisher

or a

0.12

28y2

45,000

tons per year and coal, 36,000 tons
per year,

15

Ltd.
Ontario

limestone,

sulphur,

required,

0.875

exporter

large

be

to

14

Madsen Red Lake Gold Mines

large tonnage of sup¬
required by Pronto
Algom. Three of the major

will

which

will

MacMillan & Bloedel Ltd."B"

Production

very

items
of

with

favorable

the

$2-30 million.

over

Branch—Brantford, Ontario

possible,

of

drill-prospected.

area

Canada

million

fraction

1.00

35%

2.8

many

Quebec

McColl-Frontenac Oil Co.

already scheduled for
is expected to reach
1,500 employees by

Ltd.
Oil

...

production, refining &

distribution

early 1957.

Members:
Toronto Stock

On the basis that each employee

represents

Exchange

The Investment Dealers' Association

a

employees represent a total
population of 6,000 people who
Continued

STOCK ORDERS
ON

44 KING

ALL

on

page

47

Quotations

price

family of four, these

1,500

of Canada

•

prior

represent

to

Dec.
*

31,

Add

3%

to

that

Dec.

31,

date.

1954

sale

Bid

and

S.

prices

or

the

last

sale

funds.

ask

quotations

are

as

of

1954.
translate

into

U,

§ Adjusted for Canadian-U. S. rate of exchange.
late into U. S. funds,

Add 3%

to trans¬

b Bid.

EXECUTED

EXCHANGES

STREET WEST,

HIGH GRADE

TORONTO, CANADA

Telephone: EMpire 4-1131

\

DIRECT SHIPPING IRON ORES

FOR THE

Brawley, Cathers & Company
Members
Investment Dealers' Association

Toronto Stock

of Canada

BLAST FURNACE AND

Exchange

OPEN HEARTH
CANADIAN

GOVERNMENT-MUNICIPAL-CORPORATION
SECURITIES
•

CANADIAN




BANK

OF

COMMERCE

EMPIRE 3-5821

TORONTO

BUILDING

Steep Rock Iron Mines, Limited
Steep Rock Lake, Ontario

BCfl

Volume

Number 5414

181

.

.

The Commercial and Financial Chronicle

.

(1411)

Hornblower
Approx.
% Yield

No. Con-

Quota-

Based

12 Mos. to

tion

Dec. 31,
1954

Dec. 31,

Dec. 31,

1954*

1954

Divs. Paid

—

Canadian $ *

Paymts. to

Stock Exchanges,

Montreal

firm

4.2

"B"_

1.20

10

5.5

22

of

Mr.

Canada,
of

0.70

14

Ltd
chemical

drugs,

Grocers

Ontario

13

11%

2.00

2614

7.6

John G. Nesbett

since

trust

General

39%

1.25

56

Co., Ltd

3.2

cloth,

'

&

7.1

b35

Co.,

O'Brien

etc.

25

3.25

84.00

3.9

16

Mines, Ltd

gold

Mines, Ltd.—

0.02

0.55

3.6

ofC anada, Ltd.

Vice-

as

su¬

A

feed,

34

Calif.

Brandt

seeking long-term CAPITAL

Ray¬

—

and

become

has

deposits

invests

in

Steel

sells

&

first

1.10

4.2

1.40

29

bumpers

b24

3.00

5.8

&

Spring

South

of

the

New

Street,

York

and

Angeles Stock Exchanges.

previously

with

Prospectus from

He

Industrial

pipe

Paton Mfg.

Tlie Keystone

ROUGE,

La.

worsted

Penmans

Ltd.

Woolen,

cotton

Estabrook Adds

4.3

16

8

10.0

48
silk

and

0.80
3.00

46

6.5

BOSTON,

fabrics

Marion

knitted

J.

50

typers

Ltd

21

engravings,

to

Mass.

—

2.00

42

6>

MATTHEWS

Staff
v

Established

COMPANY
1909

M.

Challen

MacMillan, Joanne V.
Leopold Peavy, Jr.,

&

brook
Photo

Congress iStreet, Boston 9, jMLassacLiusettJ

Members:

have become affiliated with Esta¬

Electro-

&

Company of Boston

and

Novello

Engravers

or

Alice A. Esper,

goods

Photo

dealer

Frances C.
Cummings,
Dwight D. Evans,

Beattie,

,

investment

C.

—

(Special to The Financial Chronicle)

Co., Ltd

Woolens

and

70%

tubing

and

local

your

Marache,

plastic products

Page-Hersey Tubes, Ltd

GROWTH

under Canadian Laws

Ryder, Cleveland Serrett and G.
E. Wallace, Jr., have joined the
staff of Federated Securities Corp.,
Louisiana National Bank Bldg.

Co.,
17

springs,

26%

mortgages

Ltd.
Automotive

TAX BENEFITS

C.
Burleigh, Charles W. Caillouet, W.
B. Garrett, Shirley Halphen, Mal¬
colm D. Humphreys, R. G. Marler,
John A. Richie, Jr., William L.

deben¬

Products

certain

4.4

cereals

and

fully managed Canadian Investment Company

with William R. Staats

640

BATON

84

tures;

Fund

e

with

been

(Special to The Financial Chronicle)

1.50

52

Co.

Ontario

information,

field

With Federated Sees. Corp.

Ontario Loan and Debenture

Accepts

Ke

invest-

Dofflemyre.

producer

Ogilvie Flour Mills Co., Ltd.
Mills flour,

present

#

gold producer

Gold

Quebec

H.

members

wire

was

Copper and

had

ANGELES,

connected

2.50

Los

weaving machinery,

Noranda

of

as

in

administrative

and

A.

mond

Co.,
21

mesh

LOS

,.,

Weaving

Wire

3.6

b25

0.90

25

Ltd.

wire

Algoma

Joins Staats Staff

Ltd.
Makes

basis

anybody's guess,

unreasonable, on the

4.8

members

electrotypes,

Boston

Co.,

15

the

of

Stock

State

New

Street,

York

Toronto Stock

and

Exchange

Investment Dealers' Association of Canada

Exchanges.

commercial photography, etc.

Pickle Crow Gold Mines Ltd.

19

0.10

1.42

7.0
-

Ontario

^

Placer Development,

Ltd

22

1.75

5.5;

32

Investment—holding co.—gold

17

Largest producer of newsprint
West

43%

1.60

3.7

to

prior
31,
3%

to

that

Dec.

31,

date.

1954

Bid

sale

and

ask

prices

or

the

quotations

last

been

added

to

220

the

translate into U.

are

as

of

S.

Toronto, Ontario

Bay Street

Continued

Private

on

page

48

Toronto Stock

Montreal Stock

Wire

Connections

Portland,

(Special to The Financial Chronicle)

tional Bank

& Co., U.
Building.

S.

net

U.

S.

funds

Limited
Member

Support

Investment

Dealers' Association of Canada

Toronto

Wi

Cochran,Murray £ Hay

Fort William

Watt & Watt
Bell

Member of the
Toronto Stock Exchange

Port Arthur

Incorporated

70 Pine Street,

London, Ontario
Dominion Bank Bldg.,

New York 5, N. Y.

and Buffalo

Hamilton

System Teletype NY 1-374
Affiliate of




Watt &

6-8 Jordan

•

to

Montreal

basis

Chicago,

Cochran,Murray £ Co.

-

Private Wires

commission

Montreal,

Na¬

Orders in Canadian securi¬
on

York,

St. Louis,
Salt Lake City,
San Antonio,
Francisco, Seattle, Tucson

Exchange

Investment Dealers' Assn. of Canada

ties executed

New

San

Exchange

Winnipeg Grain Exchange

with

Albuquerque,
Atlanta,
Cleveland,
Dallas,
Denver,
Detroit,
El Paso,
Harrisburg,
Houston,
Kansas City, Los Angeles,
Midland (Texas),
New Orleans,
Phoenix,
Pittsburgh,

Members

or

EMpire 4-5191

DENVER, Colo. —Floyd Marks
has been added to the staff of
Birkenmayer

■■

„

Delta Building.

Birkenmayer Co. Adds

sale

1954.

Add

b Bid.

pany,

~

represent

Dec.
*

has

on

coast

Quotations

price

.

ORLEANS, La.—James A.

staff of Tschirn Investment Com¬

Powell River Co., Ltd

the

NEW

/:

Chappius

Interests

.

(Special to The Financial Chronicle)

,

•

With Tschirn Inv. Co.

gold producer

Watt

St., Toronto

/

to

quickly as in expect that these records will be
District where, in a duplicated.

(Special to The Financial Chronicle)

advertising signs

Niagara

Canadian
wealth

is

two

poten¬

business; also

Neon Products of Western
Canada

area

next
ore

pervisor of The Dreyfus Corp.

accepts deposits

Neon

the

in

He

1925.

President
Trust

tial of the

new

of

fund,

Dreyfus & Co. since 1951

etc.

National

much

developed

1947, has been

5.1

automobile chassis,

cars,

the

in

ever,

so

the

additions

will bring to the

an

ment

National Steel Car Corp., Ltd.
Railway

0.60

18

Co., Ltd.__

wholesaler

grocery

been

mills

from

open-end mu¬

&

tual

National

mining has

Nesbett

merchandise

general

advanced

funds.

Fund,

5.4

13

What

Nesbett,

the

Chemical

well

total

in

founder

etc.

National Drug and

Wholesaler

mutual

dis¬

advertising

forms,

play products,

3.5

34

1.20

21

if

Seldom,

regis¬

repre¬

cializing

a

but it is not

sentative, spe-

brewer

Business

as

value

capacity exceeding 7,500
tons daily.

directly dependent on the
Algoma District Uranium Mines.

the

with

tered

Corp. Ltd

Co.

ated

gold producer

Molson's Brewery, Ltd.

Moore

71.75

3.00

38

Ltd.
Ontario

of

will be

associ¬

now

a

plans

Algoma District

years

is

Nesbett

from

years

exceeding $400 million has been
drill-developed
and
production

John

that

—

period of less than two

Of Canada

have announced

Mclntyre Porcupine Mines,

46

In the

Wall

40

Weeks,

page

Uranium Ore Trends

Street, New York City, members
of the New York and American

on

secutive

Years Cash

&

from

the start of staking, ore to

Hornblower & Weeks

Cash Divs.

Including
Extras for

Continued

John Nesbeii With

Canada-Dynamic Domicile of
Enterprise Capitalism

47

Toronto, Telephone Em. 3-9161
Kitchener

London

40

The Commercial and Financial Chronicle

(1412)

NYSE

I

Arbitration Director
New

How Can We

York

Canada-Dynamic Domicile of
Enterprise Capitalism

President of the

Stock

announced

the

Exchange,

has

of
Cyril C. Means, Jr. as Arbitration
Director of the Exchange.
Mr.

Help You?

Means,
served

ney,

appointment

Cash Divs.

with

firm with full facilities in Canadian,

a

American and

markets has many

overseas

We have those facilities

tages.

..

advan¬

memberships

.

1

security and commodity exchanges and offices
representatives iri 73 cities.

or

Thus

we

offer

can

wide market and

a

supply in unlisted securities and primary

source

of

Means

duties

1

second¬

or

tions. Whatever your

how

large

requirements

small, we'll welcome

or

of

will

the

Exchange.
the

are, no

your

matter

engineering

Provincial

arbitrators

in

Brokers

—

between

and their customers or

with

&

Dealers

STOCK

LEADING

TORONTO

AMERICAN,

YORK,

AND

COMMODITY

Company,

enue.

He

State of

EXCHANGES

ADELBAY BUILDING, TORONTO
1$79 yEjailSx 1954
Tel:

36 WALL STREET, NEW YORK 5

IHIMHII

Tel:

will

be

of

Officer
the

in

(P.

L.)

of

range

the

Oil

Tax

the

investment
on

your

regularly in

our

will find it

planning and

monthly Bulletin. We
a

valuable aid to,your

sound basis for decision

a

Co.,

Upon request,
you a copy
cusses

five

we

of the current issue which dis¬

interesting Canadian Companies.

Ross, Knowles &c O. Ltd.
«

Members, The Toronto Stock Exchange
and The Investment Dealers' Association

25 ADELAIDE STREET

in

the

St.

Louis

office

0.40

1.525

26

0.26

Starting

Russell Industries Ltd.

of

Enterprise Building.

bl2y4

3.3

51

3.0

12.87

2.0

on

Page 51

19

0.90

17y4

5.2

21

0.06

2.18

2.8

18

0.75

12

1.00

bl6y4

6.2

19

1.00

14

7.J

48

1.45

53%

2.7

13

gold

Sangamo
Electric

1.65

48

3.4

27

1.40

28

5.0

17

0.50

11%

4.4

producer

Co.,

Ltd

meters,

14

5.3

motors, switches,

etc.

Sarnia Bridge Co., Ltd.
Steel

Officers

bridges

related

and

pro¬

duction

are John W.
Myers, President and
Treasurer; Adron Myers, VicePresident, and Courtney F. Smith,
Jr., Secretary.

Scythes & Co. Ltd
Manufactures

waste, cotton

cotton

and

wool

wipers, etc.

Shawinigan Water and Power

Alexander Tucker Opens

Co.
Quebec electric

(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Alex¬
Tucker has opened offices

Beverly Drive to

utility

Sherwin-Williams Co. of Can-

ada, Ltd.

en¬

Paints,

varnishes,

enamels,

-

etc.

gage in a securities business.

Sicks'

Two With

Breweries

Beer,

Carroll, Kirchner

ale,

stout

Ltd._
and

carbonated

beverages

(Special to The Financial Chronicle)

Silverwood Dairies, Ltd. "B"

DENVER, Colo.—James R. Can¬
non,
Jr., and LeRoy V. Dolsby
have joined the staff of Carroll,
Kirchner & Jaquith, Inc., Denver
Club Building.
Mr. Dolsby was
previously with E. I. Shelley & Co.

Pull line

•

of

Quotations

price

prior

dairy products
represent
to

Dec
•

31,

Add

3%

to

that

Dec.

1954

31.

date.

sale

Bid

and

S.

prices

or

the

last

quotations

are

as

translate Into U.

b Bid.

to announce

our

the

following

Bond Department

Robert K. McConnell

Complete Investment Service
GARDINER,

ANNETT

Partner in

Sales

Association of Canada

BAY

ST.—EMpire

charge

Arthur H. Ackerman

LIMITED

Members Investment Dealers*

Members The Toronto Stock

BRANCHES

Peterborough, Oshawa, Oakville,
Hamilton, St. Catharines, Niagara Falls,
Toronto

(Uptown), Stratford

Manager

Robert J. Trow
4-9271

Trader

MEMBER

Toronto Stock

GARDINER. WATSON & CO.

Exchange

Montreal Stock

Exchange

Canadian Stock

Exchange

BANK OF NOVA SCOTIA BLDG.

Exchange

1

EMpire

Vancouver Stock

6-9211
40

J»

GEORGE

R.

GARDINER

ADELAIDE STREET

;«

of Canada

BANK

EMpire
1




OF

NOVA

6-9211

H. Crang

D. A.

SCOTIA

BLDG.

Calgary Stock Exchange

Winnipeg Grain Exchange

PARTNERS
J.

Fitzgerald

E. D.

Scott

G. C. Donley

L. L.

Exchange

WEST

TORONTO

LIMITED

Members Broker Dealers' Association

V

of

WEST, TORONTO, CANADA

1

>

sale

funds,

ask

1954.

of Canada

appointments to

330

4.6

Holding co.—machine tool interests

We wish

:

2,6

development

Second Table

Treasury Department.

at 260 South

will be pleased to mail

1.20

boits

Ltd.______

and

Trust

ander

Canadian securities.

6.1

Dividends From 5 to 10 Years
Appear in the

Di¬

SHREVEPORT, La.—South State
Investment Corp. is engaging in a
securities business from offices in

confident you

16%

Listed Companies Which Have Paid
Consecutive

(Special to The Financial Chronicle)

are

1.00

86

and

screws

production

Manitoba

reviewed

4.4

world

Royalite Oil

South State In v. Co.

Significant business and economic trends in Canada

45% "

Manufac¬

San Antonio Gold Mines Ltd.

are

2.00

Company, St. Louis, Mo. Prior to
that, he was an Internal Revenue
the

A Guide to Investment In Canada

11

Operates 796 branches throughout

the

Mercantile

1.4

the

in

the

5.90

Av¬

of

one

0.08

13

Transport Co

Royal Bank of Canada

Missouri.

Trust

Agent

Dlgby 4-3600

Wide

become

Baltimore

15

products

turing Co., Ltd

George K. Baum

1016

4.0

40

Co., Ltd.-.

related

and

Robertson

Jack

—

49%

Operating public utility

McCarthy had been assist¬

vision

EMpire 8-4871

y

) 75 YEARS (

ant

Mo.

recently

representatives

AND OTHER

Mr.

BACUK&CO.

CITY,

2.00

producer

Quebec Power Co

members

employees.

McCarthy Joins
George K. Baum Co.
has

19

&c

Ontario

Jack

firm's
NEW

1954

—

Operates coach lines in Quebec &

settling

disputes between members of the

associated

Corporate, Municipal & Canadian Securities
MEMBERS

1954-

Canadian 5 *

18

management

Price Brothers &

the

over

Newsprint

McCarthy

BACI1E & CO.
—

Paymts. to
Dec. 31,

co.

Ontario gold

Director

Exchange and

inquiry.

utility holding

Haire, Secretary of
Mr. Means will as¬

from John R.

sist

take

Arbitration

KANSAS

Underwriters

Dec. 31,

Preston E. Dome Mines Ltd.,

sta¬

was

offerings of corporate and government obliga¬

ary

I

He

A

tioned in Frankfurt and Bonn.

on

Mr.

26

tion

Dec. 31,
1954

Power Corp. of Canada, Ltd.

Hign
Commissioner
for
Germany, from 1950 to 1954, as
Legal Adviser to the Joint Ex¬
port-Import Agency.

on

12 Mos. to

Divs. Paid

States

Dealing with

Based

secutive

United

the

to

Quota-

Years Cash

attor¬
Office of

the

Counsel

% Yield

Extras for

—

General

Approx.

Including
No. Con-

'

Michigan

a

Thursday, March 24, 1955

Continued from page 47

Appoints Means

Keith Funston,

...

Masson

(Limited)

A.

R. K.

C.

Hubbs

McConnell

;

Volume 181

Number 5414

The Commercial and Financial Chronicle

...

(1413)

Canada-Dynamic Domicile of
Enterprise Capitalism
Cash Divs.

Years Cash

Dec.

(N.) Co., Ltd

Pole-line

companies;
and

also

for

12%

3?Ae ^fewemdo S^tocJc

4.7
Better Business Bureau Activities

•

for 1954:

forgings

Smith

(Howard) Paper Mills

Bureaus,
10

Pulp

and

30%

L.00

manufacturers

paper

Consumer

Clark,

across

_'

Co., Ltd

Publishes

daily

seven

Canada;

1.60

19

New

newspapers

operates

stations

Canada Power

32
public

utility;

45

1.95

4.3

South¬

Quebec

J.

—

and

retail

b70

1.75

2.5

Federal

0.90

20

small

22J/2

tional

N.
of

Engaged

Canada, Ltd.___

in

branches

all

39

1.30

46

2.8

related

and

18

1.55

42

friction

1.00

14

7.1

Ontario

29

products

bl9

0.80

4.2

Quebec

.25

0.10

•

1.65

6.1

producer

18

_

Hughes ' Gold

charts

1.80

.

utilities,

weekly

price

45

since 1949,

earn¬

4.0

Facts

book

1955—A

for

DYNO MINES LTD.—is currently de¬

Hand¬

Fiscal

Federal

on

Uranium

Prob¬

Mines,

of

30

4.50

0.15

veloping its

3.3

and Proposed Remedies—
Foundation, Incorporated,
Rockefeller Plaza, New York

Investment

trust

In¬

General

the

of

26

0.26

6

4:3

Chamber
U.

Business

in

Research

nomic

Ltd..

Trust

20*

0.60

bl9

3.1

a

through
For

for
•

February

each

the

to

.

.

.

.

drilled

drills working.

through the ice in

has indicated radioactivity for

It is apparent that

length of 181.1 ft.

indicated for

tonnage potentials are

zone.

On

not intimately

women

that

31,

date.

Companies,

Bid

Bank

prices

sale

1954

ask

and

on

page

44.

the

last

or

quotations

are

Keys

as

of

same

—

aligned with

property

—

750,000

material have been indicated

consulting

and the company's

by drilling;

Y.

New

Progress—Pamphlet

to

the

on

tons of radioactive

en¬

gineers have recommended the sinking of a 3ex¬

compartment production shaft, with three

plaining briefly the working of
the Patent System and its stim-

sale

zone,

61

York 6, N.
(paper). Copies on request.

entities.

Dec.

Investment

Dyno's "A" and "B" zones

"C"

the

Association

National

—

Broadway,

data

of Toronto-Dominion

represent

prior

of

of

Bank.

see

former

See advertisement

price

Bank

the Dominion
purposes,

of

tutions

1955

the

of

merger

and

record

Quotations

•

and

men

acquainted with financial insti¬

(THE)

Toronto

.

.

clothing

Investing Made Easy—Booklet for

in

days

core

this

tities $4.50 per hundred.

TORONTO-DOMINION BANK

Formed

"E"

important

request; quan¬

on

of Ontario, with 2

area

Hole

recent

radioactive "C" zone on one

new

company's 3 properties in the Bancroft

the

of

S.

Single copies
Tip Top Tailors, Ltd
of fine

Eco¬

—

A., 1615 H Street, N. W.,
Washington 6, D. C.
(paper).

manage¬

type

Manufacturer

Drill

Department,

Commerce

of

the

uranium

20, N. Y. (paper), $1.00.
producer

Canadian

London Resident Director

lems

29
gold

vestment

ment

*

indus¬

338

on

public

77

with

Government

Third

Stock

Tax

Ltd.
Ontario

Counter

-

dividends, etc. — O-T-C
Publishing Company,
14 Elm
Street,
Morristown,
N.
J. —
Single edition $8.75 — Annual
subscription (6 editions), $45,00.
Fiscal

-

-M. 0ay,nte7

^ &). S$damA

$\S$.0lo$e

C.,

D.

ings,

in

Operates chain of 103 drug stores

Teck

The

-

annual ranges

Com"

gold

Colm—Na¬

9,

S$lien

changes for the past two years,

Sylvanite .Gold Mines, Ltd.__
Ontario

jftcAji (Ao.

45 banks and 44 insurance com¬

lubricants

Tamblyn (G.) Ltd

<y\/cv/<C>

DIRECTORS

Association,
Hampshire Avenue,

issues,

panies

petroleum
and

Over

trial

products

"Vot.

Markets

VICE-PRESIDENT

PRESIDENT

Mass.

\<uce

Washington

dividual

Supertest Petroleum Corp.,
Ltd.

Boston,

Charts—Graphic manual of the
unlisted market, including in¬

3.7

15

Oil Co., Ltd._

Makes extreme

t£

$1.50

fiduciary business

(D. A.)

r

of

Har¬

Planning
New

W.,

500

Sterling Trusts Corp
General

'

0nJwj<4o

steel

of

production

Stuart

8=4734

^SrctttcA,

v

Budget and the National

1606

Co.

School

Economy—Gerhard

4.0

wares

business

Steel

^/elcfiAene: Svnfiire

V.

and

Administration,

University,
(paper).

insurance

Brothers Ltd

Wholesale

CANADA

Business

Harvard

vard

36

endowment

TORONTO,

*

„

of Canada
and

STREET

Reprinted

—

Review'*—Graduate
•

Sovereign Life Assurance Co.

Stedman

Sq.,
(cloth),

Y.

Lasser

K.

"The

Business

Life

N.

3,

Henry Rothschild
from

ern

Washington

Press,

York

utives

Co.,

Ltd.
Operating

BAY

200

Deferred Compensation for Exec¬

Southern
v

Lincoln

—

$4.00

radio

3

Behavior

Editor—New York Uni¬

versity

4.4

36

Canada

Build¬

Chrysler

Inc.,

ing, New York 17, N. Y. (paper).

3.3

Canada

Southam

f^Ae i$nweUnte*i£ Q)ealew&'

Statistical Analysis

A

SoccAwn^e

—Association of Better Business

Ltd.

in

1954

—

power

stampings

metal

Dec. 31,

1954.

t0.60

17

hardware

on

Paymts. to

Dec. 31,

31,

Canadian $ *

—

Based

tion

1954

Divs. Paid

Slater

% Yield
Quota-

12 Mos. to

secutive

tAowU, sdlien !£miited

Approx.

Including
Extras for

No. Con-

Average

levels.

grades approximately $12.00 per ton,

ore

*

Dec.

31,

1954.

6

Add

3%

to

+

Adjusted for stock dividends, splits, etc.

ulas

translate

into U.

S.

to

competition

tion

funds.

of

new

and

esses

b Bid.

Continued

on

page

search

50

and

crea¬

useful

and

proc¬

products

and

—

Esso

at the base

Com¬

Engineering

Lithium

15 West 51st Street, New
York 10, N. Y. (paper).

pany,

Ownership Among

Life Insurance

Families

American

A

monthly report

stitute

Arbor,

the

on

1954

Social

for

University

price of $7.25 per lb. U308.

Re¬

of

Mich,

—

In¬

DYNO MINES LTD.

Research,

Michigan,
(paper).

Ann

actively at work
TIONAL

on

LITHIUM

—

has

four drills

the property of INTERNA¬
CORPORATION, in which

Mirage of Perpetual Boom—From
the

Canadian
If
the
an

you are

interested in Canada

.

.

.

C.

Economy
will want to be

you

for

Economic

Irvington

-

on

-

quantity prices

U. S. offices

our

or

our

Philippine
ance

Head Office

Life

American

Company

ning

in Montreal.

—

Case

Schedule

of

Montreal

op

Canada's First Bank Coast-to-Coast
New York

...

Special

64

Wall

Street

Representative's

HEAD

San

Office,

OFFICE:

Francisco

Room

.

.

1K02,

.

333 California

141

West

Street

Jackson

Blvd.

—

issue
.

of

—

1060
N.

9,

Par

D.

C.




'

—

$2,500,000,000

indicated
to

will go

500

a

is strategically-located in
as

QUEBEC LITHIUM,

tonnage

potential of 15

ft., worth $750,000,000, and

output
CORPORATION

into production this year, with its

contracted for

by the LITHIUM

OF AMERICA for the next

five years.

20th

Monetary

Fund, Washington D. C. (paper).

DYNO MINES

Wage Extras—Economic Research

L I M.I T E

D

Department, Chamber of Com¬
merce
of the U. S. A., 1615 H

Street, N. W., Washington 6,
(paper). Single copies on

MONTREAL

Resources Exceed

has

area

$1.

Values

International

New
W.,

D. C.
625 Branches Across Canada

which

general

Insur¬

study

Avenue,

Washington

to i mu tor ctumn

Chicago:

Association,

Hampshire

Bank

same

request.

on

John Lindeman—National Plan¬

of

v

70% controlling and management

a

This property

million tons

up-to-the-minute brief-of Canadian economic trends. Address

any

the

N.
Y.
copies
free;
.

on

Dyno holds
interest.

Hudson,

Single

(paper).

mailing list for the B of M's monthly Business Review —

:

Survey, Albert
— Foundation
Education, Inc.,

Guaranty

Wilcox, Editor

request;
hundred.

quantities

$4.50

per

SUITE 405, 67

YONGE ST., TORONTO, CAN.

4s

\

50

The Commercial and Financial Chronicle

(1414)

Continued

Steel

EXCHANGE

what
have

will

OFFICE

one

this;

We

do
at

20 ST. CLAIR AVE. W.

so.

all

the
BRANCH

OFFICES

KIRK LAND LAKE, ONTARIO

NEW LISKEARD, ONTARIO

we

long

so

the

TIMMINS, ONTARIO

the

as

to

General

Toronto

market

Calgary

•

only do

can

Montreal

•

All Branches

that

Confidence

in

Ltd.

tres

Securities Has Fluctuated
But

I

in

United

THOMAS H. ROADHOUSE

As

D'ARCY M. DOHERTY

COCHRANE

W.

recite

these

investment

JOHN

have

we

$300 to build

M. ROGERS

simple

Ontario

it

seen,

costs

now

Cotton

integrated steel capacity from the
up, but on Tuesday of last

capacity

existing

represented

as

—

stocks

common

steel

of

ton

one

steel

the

by

of the ten

80%

of

the

trust

Cotton

al2

5.4

30

0.60

bl4

4.3

14

0.65

0.045

19

0.65

15

1.40

12.25

11.2

19

the

of

&

4.00

68%

5.7

18V2

3.5

1.32

3.4

man¬

Co., Ltd

and

bl3

5.0

goods

copper-zinc producer

Walker

largest

entire

0.65

producer

yarns

Quebec

(Hiram)-Gooderham

Worts,

Holding

companies in America, which

constitute

5.2

interests

Waite Amulet Mines, Ltd

ground

week,

106

type

gold

Wabasso

single ton of fully-

a

5.50

15

Shares Ltd.

Upper Canada Mines Ltd

facts.

Partners

JAMES

illustration of this point, let

3.8

thea¬

Corporations Ltd."B"

agement

merely

36%

arid other Que¬

co.—insurance

always been high in the past, and
an

1.40

issues

—

Canadian

An

as

71

deposits

accepts

Montreal,

confidence in steel issues has NOT

me

4.6

cities

Holding

regret to say that public

17 y2

55

Corp.

mortgages;

and

"A"

United

Steel

0.80

manufac¬

Operates 34 motion picture

bec

Public

—

30

first

on

debentures

high confidence of the invest¬

Vancouver

*

1954

Canadian $ *

United Amusement Corp.,

ing public.
Private Wires: New York

Paymts. to
Dec. 31,

fiduciary business

which

financial

feed

Mortgage Co

Lends

securities command

our

on

Dec. 31,

turing and vegetable oils

successfully

competition

in

And

place.

HAILEYBURY, ONTARIO

meet

to

intense

prevails

always be able

elevators,

Toronto General Trusts

must, I repeat, be able

times

tion

Based

16

Elevators, Ltd.__;

Grain

thing I do know is

must

We

% Yield
Quota-

1954»

31,

1954
—

the market

in the future, I do not

know; but

BRANCHES

Dec.

Divs. Paid

industry

our

into

go

Extras for

12 Mos. to

secutive
Years Cash

Toronto

extent

to

Approx.

Including
No. Con-

by borrowing,

year

for money

STREET, TORONTO

BLOOR ST. W.

a

by selling stock.
To

20

Cash Divs.

that source
Thus, over
the last nine years, the 15 largest
companies of the industry have
had to raise an average total of

or

LOCAL

Canada-Dynamic Domicile of
Enterprise Capitalism

Companies' Stake

$200 million

Thursday, March 24,1955

.

49

page

alone, by any means.

OF CANADA

THE INVESTMENT DEALERS' ASSOCIATION

255 BAY

jrom

been able to rely upon

THE TORONTO STOCK

HEAD

Continued

4

page

In the Stock Market

DOHERTY ROADHOUSE & CO.
MEMBERS

jrom

..

Ltd

co.—extensive

liquor

in¬

terests

in¬

dustry—was selling at $56 in the
securities market.

Great Sweet Grass
Signs Gas Contract with
Trans Canada

Pipe Lines

Thus

after

making

due

for the value of the

ance

allow¬

In

March, 1.955, Great 'Sweet Grass Oils Lim¬
signed

contract

a

Pipe Lines natural
a

with

the Trans

Canada

willing to

were

as

it

a ton of steel
capacity
currently costs to build it.

years

which guarantees

a

starting

price —at gathering points to be established in
the Steveville field of Alberta
cu.

ft. of natural gas to

is to be increased
until the
be
a

view to

an

in

—

of 10c per

Dec. 31, 1957.

V4c per

maximum of

reviewed

why is that?
What
plains this lack of confidence

1000

cu.

1000

The price

ft. each year

15%c is reached

...

to

1962, 1967, 1972 and 1977 with

upward revision in price only.-

Answer Is

the

answer,

and

ups

Ltd. has

Past

experience

downward

LION

CU.

FT.

.

.

.

its

...

natural

to

133.52

gas

areas

of Alberta.

and

4

producing oil wells

.

.

.

in
All

plus the

recently-acquired management-control of CANA¬
DIAN OIL AND GAS RESERVES LTD.
in

at

which,

turn, has interests in 43 oil wells in Oklahoma

and 3 wells
over

in

Alberta, with

reserves

drops

of

industrial

in

upward

reverse

steel

has

a

"feast

or

estimated

to

at the profit

pro¬

our

is

re¬

look

you

speaking,

famines

we

have

indeed, but

never

the past quarter

century, have
enjoyed a single year which
remotely approached what might
we

be termed
For

26

feast.

a

now, the National
City Bank of New York has made
years

an annual study of more than
40
leading manufacturing industries,
showing the profits of each as a

percentage of net worth. And
after year—without even

gle

exception—the

have been
the average

below

sin¬

profits of

industry

ingly

year

one

the

unfail¬

earned

by all the rest.
In

five

of

dustry had

these

no

years,

our

in¬

profits at all—only

Great Sweet Grass

never

O

the

above sixth place from
bottom of the list. Only once

did

it

ILS

—

LIMITED

losses.

into

V

SUITE

307

ST., WEST, TORONTO, CAN.




half

of

these

it

ever

manage

to

climb

up

division, and then—
at this pinnacle of its success—it
Yet

you

21st from
in

many

know,

the top.

of these

years,

steel companies

Continued
I

years,

rose

the first

stood

100 ADELAIDE

In

on

as

were

page

paper

25

1.00

62y2

1.6

0.12

2.14

5.6

0.975

-

specialty

(George)

Ltd.______

bread,

cakes,

con¬

Ltd.

51

gold

producer

Zeller's Ltd.

27

3.6

Operates chain of specialty stores
across

be known

if

of

biscuits,

Ontario

cycles,

which

3.3

Wright-Hargreaves Mines,

off

picture.

Financially
had

but

unrealistic

22

fectionery, etc.

•

famine'"

rate,

grettably

steel

6,000,000 bbls.

Fine

is true.

come

0.725

provinces

in

the

enterprise
—which is an appropriate descrip¬
tion of it if you look only at the

told, the company has varying interests, up to
100%, in 30 standing gas wells, 7 standing oil
wells

that

And

4.3

Breweries,

Paper Co., Ltd.

range

Weston

oc¬

cycles,

steel

23

6.3

products

whole.

level

So

in

the Steveville and Kessler

in

rate

1.00

b22%

metal

western

Westminster

almost exactly twice as fast as the

BIL¬

reserves

is

have

shows

economic

operating

as

Great Sweet Grass Oils

than trebled

more

thihk,

which

1.40

14

four

Serves

curred in the economy as a

operating
year,

14

24

Canada

Clear

I

Ltd

22

sheet

Ltd.

highly sensitive to the

downs

Page 51

18

Western

Wide

happily, the

During the past

on

Historically the steel industry—
by the very nature of its business

duction.

Gas Reserves in 1 Year

Products

Manufactures

"B"

general

Great Sweet Grass Trebles

Westeel

quite clear:

—has been

on

ex¬

the part of steel investors?

The

Starting

only one-fifth

pay

much for

as

Well,

period of 25

Second Table

companies, this means that the
purchasers of their common stocks

gathering system covering

gas

Companies Which Have Paid Consecutive

Dividends From 5 to 10 Years Appear in the

stock and the bonded debt of these

Now

ited

Listed

preferred

Canada

Quotations
price

prior

represent

to

Dec.
*

a

31,

Add

3%

to

that

Dec.

31,

date.

1954

sale

Bid

and

S.

funds,

1954.

Asked.

b Bid.

translate

into

U.

ask

prices

or

the

quotations

last

are

sale

as

of

-

Volume

181

Number 5414

.

.

The Commercial and Financial
Chronicle

.

(1415)
TABLE II

Continued

Steel
LISTED

their

Common Stocks

pound

of

in

pour,

order

to

meet

all

being made

were

So

there is the financial record

throughout his period.

CONSECUTIVE CASH

going to cry

on

about

DIVIDENDS

am

it.

I

I

not

am

merely

going
of

diate and

first
Approx.

Including

&

Paper

Paper

and

Paymts. to
Dec. 31,
1954

Canadian 5 *

to

—

1.20

27

4-.4

and

Ltd

allied

9

2.00

38V2

0.60

Prospectus,

low

a

at

2.57

5.8

fied.

1.00

41

2.4

corrugating materials,

Brock

7

(Stanley)

0.40

87/s

4.5

Gold

Ltd. "B"___

9

0.40

b5

8.0

Operates
in

New

Burns

gold

Co.

Ltd._

dredging

Ltd.

7

6.65

30.1

in

"B"

8

2.50

52

4.8

distributes
Western

prior

to

Dec.
*

a

31.

0.25

a8y2

2.9

bakery

3%

to

level

a

that

Canada

Dec.

translate

busi¬

our

improvement
in

our

of

5

4.00

145

2.8

1954

sale

Bid

and

S.

prices

or

the

last

sale

funds,

ask

quotations

are

as

of

U.

yielding about 5%

Cobalt

.

.

of Silver

ozs.

1954 produced—669,396 lbs. of

145,651 lbs. of Nickel

.

.

.

.

and 1

.

b Bid.

Continued

inflation

our

be

in¬

19,968 lbs. of Copper.

$1,304,485.64
This recovery was obtained from treatment at

the

of

on

page

52

the

if

book

stock

these

least

value
thus

were

high

as

to

under

would

to

ton

one

capacity at

of

new

price sufficient

a

the cost of building that
ton of capacity, I for one, will not
able

of

satisfaction

with

look

to

degree

any

Company completed the

HOLDINGS

OTHER

quired,
Sudbury
These

staking,

by

The

—

18

the

as

property

a

of

in

and

strong

Mining

Company

Limited, where diamond drilling is reported under
sideration

following

results

from

a

ac¬

Township,

nickel prospect.

copper,

Mogul

a

preliminary

ploratory program.

con¬

ex¬

which the Company holds a 50% interest.

diamond
owned

drilling

In the Blind River Uranium Area,

is

planned

by the Company, and

the

on

on

15

claim

group

the 53 claim group in

Financing

That task may prove

Members:

Canadian Stock

.

recently

Nairn

complacency
upon the task of raising the large
amounts of capital which this in¬
and

The Causes of Debt

The Toronto Stock

Lode,
.

$400,000.

Company

claims

Mining Division,

adjoin

with

year

over

dustry will require in the future.

J. Bradley Streit & Co,

.

operated by the Company

working capital position of

pay

be

drawn

ore

Cobalt

royalty arrangement.

a

The

have

sell

Aguanico,

the

as

clearly made
progress,* we still have a long road
to travef, and until the steel in¬
dustry can go into the financial
and

Company's

from the Kerr mine,

figure I just mentioned.
we

the

Cobalt Lake group and Colonial mines

replacement

facilities—it

twice

of

Company's mills of 97,265 tons of

from

acquired

we

present

the

in

occurred

since

common

at

has

which

country

steel

difficult,

Exchange

Exchange

Calgary Stock Exchange

Winnipeg Grain Exchange
Edmonton Stock Exchange

decided to issue
cite

me

Last
Steel

new

final

one

We

raise

the

sale

had

Toronto, Ontario

we

by

might

this
of

il¬

COBALT

CONSOLIDATED

new

which

have

been

five

interest

we

(No Personal

Liability)

selling deben¬
have preferred
capital

but
the

that course,

receipts—would

times
are

as

much

paying

bonds.

as

|

on

President,
Vice

Leslie

President,

Paul H.

Treasurer, George
Secretary,

John

Blackwell,

E.

T.

E.

AND

Hcrshey

Director,

MINE

Dumulon

Dalton

Dean,

Mine

C.A.

OFFICE

Martial

Director,

Buchanan

Symons,

DIRECTORS

Managing Director, Andrew Robertson, E.M.

Q.C.

—

B.A.

Manager, E. E. Campbell, M.A., M. Sc.

COBALT,

ONTARIO

the

on

This wide disparity between the

Continued

OFFICERS

through

stock,

money—in terms of the

on our gross

Mining Corporation Limited

States

million

additional

followed

cost of the

the

United

$300

drain

Phone: EMpire 84831

especially
where it is
equities. Let

example to

summer,

needed

borrowed

we

to

STREET, WEST

moreover,

lustrate this point:

tures.




708,656

.

deducting marketing
charges and royalties—the company received

saying this, however, I must
out, that if the assets of
U. S. Steel were to bel reappraised

market

KING

.

For these metals—after

In

So while

Asked.

66

'

Mining Corporation Limited

—in the year

in¬

securi¬

is now selling at a price
exactly equal to its book
value, and at the present dividend

them—and

31,

date.

into

Canada

OBALT CONSOLIDATED

C

which
reason¬

a

ties.
So, for the first time since
pre-depression days, U. S. Steel

this

1954.

Add

at

confidence

reflect

represent

to

operating rate, it

reinvest

to

marked

a

cost
price

Wires

a

today in the light of the wholesale
6

cement

Quotations

Street, New York 36, N. Y.

Direct Private

point

poultry

Cement Co., Ltd

Portland

held
us

rate, it is

etc.

and

products

Canada

2.00

project

Canada Bakeries Ltd
Makes

Exchange

unjusti¬

stead of 9%.

lards, butter,

products,

be

almost

Guinea

&

Meat,

a

to

common

etc.

Dredging,

West 44th

_________

reducing our divi¬
payments; and this resulted

vestor

Laundry supplies, hardware,

Bulolo

21

without

dend
in

of

Canada

plumbing supplies,

Our

portion of them in

ness

Ltd.
producers

unwilling

degree.

same

Profits

able

British Columbia Forest

in

Members of the Toronto Stock

out, of course, their

proved

did take

enabled

etc.

largest

NEWLING & CO.

while

the
6

the

Ex¬

serious plunge,
earnings also declined
considerably, they did not do so in

"B"

of

UPON REQUEST

MUrray Hill 2-4545

But pur¬

were

•

The expected famine did not

materialize.

and

Bathurst Power & Paper
Co.,

•

obviously

is true,

timber products

FREE COPY

to accept a smaller return in view

but

One

the

on

•

fortnightly revieiv of the Canadian Securities Markets

its

of the risks which they felt were
involved.

interests

Products

A

was

of

little better than 9%.

metal

Ltd.

TORONTO

The NEWLING CANADIAN LETTER

fell

2.6

22%

0.15

decline

common

about 33

half

pessimism
7

Canada

66 King Street
West,

NOW AVAILABLE.

considerably
book value,
that price it was yielding

than

holding co.—gold and other

Boxboards,

of

Steel

As it turned

Ltd._

development

S.

That

less

co.—manufacturing &

Co.,

business

a

5.2

products

8

of

U.

chasers

merchandising interests

Barymin

dustry.

change.

Argus Corp., Ltd
Investment

Dec. 31,

a

Mills,

of

face

we

major importance.

signs

products

Pulp

South,

HAMILTON

began to appear in 1953, steel in¬
vestors
clearly
anticipated
an¬
other period of famine in our in¬

and

allied

Anglo-Canadian

Newsprint

on

1954*

31,

1954

6
and

tion

Based

Co.,

Ltd.
Newsprint

Quota-

12 Mos. to

—

Power

% Yield

Extras for
Dec.

Association

in the future, the rehabilitation of
investor confidence in steel issues
has become a problem of imme¬

Cash Divs.

Divs. Paid

Dealers'

the

we have made en¬
couraging progress in dealing with
this problem recently.
When the

Years Cash

Investment

36 James Street

to

Fortunately

Abitibi

Members

anyone's shoulder

point out that in view
heavy capital needs which

From

10 Years

secutive

INVESTMENT SECURITIES

them.

upon

which has confronted the prospec¬
tive purchaser of steel securities

No. Con-

Company

turning out
steel that they

were

military and civilian demands

that

On Which

to

A. F. Francis &
limited

plants and

every

the

5

W

Companies' Stake

breaking all production records in

could

Paid

50

page

In the Stock Market

CANADIAN

Have Been

from

51

page

Head Office—Suite 1300,100

52
v

ADELAIDE ST. W., TORONTO, CAN.

52

(1415)

i> r

i

The Commercial and Financial Chronicle

k*

Continued

McCUAIG BROS. & CO. LTD.

Steel

from

Continued

51

page

Companies' Stake

51

page

r

costs of

Outline Studies available
100

on

over

tal

Calgary Stock Exchange

but

it

is

MArquette 9511

jobs and facilities only

MAJOR & COMPANY

a

his

as

will

his investment.

in

Clearly, then,

sibility of steel management today
Exchange

is

not

only to reward

its

owners

by
every proper means their confi¬
dence in the company.
And this
is a responsibility which the man¬
fairly,

ORDERS EXECUTED ON COMMISSION BASIS

also

but

of United States Steel
has tried steadfastly to fullfill.

Macaroni

this

To

Wire to Maritime Provinces

at

ROYAL

BANK

have

we

steadily

BUILDING

level of

every

Marquette 8G71-2

this incentive program

of

All

stituted—four

part,

in

Steel

create

executives

key

our

them

among

derstanding

and

and

better

a

I

with

Members:

Montreal Stock Exchange

•

resulted

plan,

un¬

Stock

throughout

Exchange

I

tion.

Toronto Stock

Exchange

its

&

operates

that

fact

along

Enamel

has

it

Head Office:

230

Notre Dame St.

W., Montreal

that

been

re-

&

held at

were

have

normally

;;

&

40

occurred

operates
in

well

up¬

TROIS-RIVIERES

CHICOUTIMI

—

ST.

—

SHERBROOKE

this

early

dividend

JOHNS, P. Q.

Lakes

a

time,

same

of

Board

our

improve

our

advanced

store

stock

the

of

bl2

8.3

6

0.20

4.90

4.1

8

1.60

30%

5.2

8

0.25

6.00

5

2.00

Can¬

&

uu-—

paper

Ltd. "B"

corporation

the basis of two shares for

one.

of

4.2."

lignite

Saddlery Co., Ltd.

mdse.,

price
Dec.

and

to

of

8.7

a23

general

riding goods

represent

prior
31,

4 ' * Add 3%

that

Dec.

31,

date.

1954

sale

Bid

and

S.

prices

or

the

last

sale

funds,

ask

quotations

are

as

of

1954.
to

translate into

U.

Asked.

a

on

of

newsprint

distributor

Quotations

•

proposal to split the authorized

common

1.00

coal

Great West

know,

as you

5.7

depart¬

Paper Co., Ltd.

distributor

Wholesale

Directors

7

pttawa

sulphite

Wholesale

accordingly.

At the
PROVIDENCE, R. I.

to

year,

largest

Great West Coal Co.,

business since then, we were able,
—

0.40

our

Exchange Place, New York City, HAnover 2-6625
QUEBEC

'

con¬

drilling contractors

ex¬

in

air

ada Ltd."Ord."& Class "A"

Great

been

And thus, with the marked
has

7.8

etc.

Petroleums

bleached

that

5.10

9

furnaces,

ranges,

General

a

V

turn

0.40

and

Freiman, Ltd

Owns

pected.
Offices:

4.6

Heating Products,

Manufactures

Branch

silver

zinc,

ditioning equipment,

A. J.

Oil

might

26%

7

Stoves,

satisfactory level than

more

1.20

mill at

paper

Mines, Ltd

copper,

earnings,

our

readjustment,

much

a

Ltd.

organiza¬

has

during the recent period of busi¬
ness

4.0

producer

Quebec

Sullivan

ment store

the

10

5

&

derivatives

Produces

i sponsible in considerable measure
for

0.40

Chemical

tar

coal

of

Clermont,

East

efficiency

entire

our

feel

5.8

3.8

steel

Donohue Brothers Ltd.*.

*

Canadian

17%

9

iron &

&

Tar

Distiller

of

incentives,

increased

in

1.00

al3

pyrite

this

other

the

0.50

structures

Co., Ltd.

to

appreciation

that

believe

3.6

Interests

Dominion

investor attitudes.

SAVARD & HART

62%

Construction

types of steel

Owns

by

2.25

newsprint

to

larger stock ownership

encourage

daily

holding co.—coal,

of

option plan designed,

3.-6

9

mills;

Ltd.
A

stock

ago—a

years

35

Dominion Steel & Coal Corp.,

in¬

we

1.25

products

Co., Ltd.

our

top executive offices. As one phase

related

capacity, 2,479 tons

incentive program

our

5

6

Ltd. "B"_

Prod.

and

five

Disher

operations,
from the open-hearth floor to the

MONTREAL

Telephone

end

expanded

2.9

variety of

Consol. Paper Corp., Ltd

agement

Private

>69%

Co.,

apparatus

Food

Owns

2.00

9

electrical

large

3.8

machinery

mining

and

33

makes

also

Westinghouse

Airbrakes

1.25

9

v

5

9

repairs;

Ltd.

increase

to

2.8

waterways

on

and

Canadian

■>

Canadian Stock Exchange

|0.46y4 16%

5

—

Shipbuilding,

respon¬

2.9

dredging; construction &

repair work

Catelli

primary

a

1954

—

13%

0.40

6

Canadian Vickers, Ltd

de¬

1954*

Canadian $ *

Dredge & Dock

General

confidence

Dec. 31,

largest foil converting

as

as

Paymts. to

Canada

industrial

long

so

regards

demands

size

in

grows

Members
Montreal Stock

he

return

cline

in

Co., Ltd.

return for his services. And

proper

the

he

and

plant

He will continue .to provide new
he receives what

Foils, Ltd

Oldest

on

tion

Dec. 31,

31,

1954
—

Canada

we

have, and every job our industry
affords, was created and paid for
by the investor.

MONTH EA E

Divs. Paid

Dec.

Based

Quota-

12 Mos. to

secutive

Years Cash

Canadian

Every ton of steel capacity

Entrance

% Yield

Extras for

No. Con-

the

as

its investors.

return to

1120 FEEL ST.

Z'l^ateau 8971

regard

income and
also partly
due, beyond doubt, to the fact that
our industry has not, in the past,
provided a fair and dependable

Members

Street

I

Approx.

Cash Divs.

Including

degree, of

of corporate

dividends,

Montreal Stock Exchange

Ground Floor

small

no

what

to

taxation

:iiV

276 ST. JAMES ST.

in

unwise and discriminatory double

Enquiries invited

Canadian Stock Exchange

equity and borrowed capi¬

due

course,

leading Canadian Listed Companies
m

is

Thursday, March 24, 1955

Canada-Dynamic Domicile of
Enterprise Capitalism

In the Stock Market

JMiMUUJMM

from

...

,

'

b Bid.

.

This proposal

the

t

Adjusted, for stock dividends, splits, etc.

will be submitted to

stockholders

their

at

annual

meeting in May, and it is intended,
of

Drinkwater, Weir & Co. Limited

to

course,

distribution

encourage

of

to make them

these

more

wider

a

shares,

and

readily avail¬

able for investment purposes.

Investment Securities

In

all

of

these

McDOUGALL & CHRISTMAS

therefore,

ways,

Members:

the management of U. S. Steel has

Members of
Canada

investor

confidence

in

the

cor¬

I

have

Exchange

Canadian Stock

sought to stimulate the growth of

The Investment Dealers' Association of
233 Notre Dame

Montreal Stock

Exchange

v,

poration.
Street West

•

Montreal

•

llarhour 6101

But

in

emphasizing,

as

The Investment Dealers' Association of Canada
•

here this afternoon, our responsi¬

bility, to
make it

Oswald & Drinkwater

not

the

forgetting

continuing
Members

Montreal

Stock

Canadian

<

Stock

The Toronto Stock

Exchange

Insofar
continue

demand
233

Notre

Dame Street West,

Harbour 6101




Montreal

I

want

our

we

to
are

compelling and

obligations

to

520

and
as

we

we

their

by

Francois Xavier

Street

Montreal
as

possible,

to meet every

that

shall

legitimate

they present
strive

in

shall

we

the

to

us,

future,

Branch: 14 Metcalfe Street, OTTAWA, Ont.

have in the past, to enhance

welfare

every

St.

our

workers.

Exchange

Exchange

investor,

crystal clear that

and

their

appropriate

security

means.

i

lit

Volume 181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1417)

Canada-Dynamic Domicile of
Enterprise Capitalism

Joy Mfg. Go. 3%%
Debentures Offered

Cash Divs.

12 Mos. to

secutive

Dec.

Divs. Paid

Building
lime

materials;

products;

tion

fund

on

Paymts. to
Dec. 31,

1954-

1954

Canadian $ *

2.00

—

55

The

Ltd

8

1.00

16%

6.1

0.30

Management type investment
trust

Acceptance

6y8

4.4

life

y,\:

.

.

Paper Co

pulp

and

and

U.

2.50

9

54

4.6

utilities

in

America

§3.00

84%

Central

6

2.40

131

1.8

public
South

and

pay
6

0.10

7
installment

sale

2.10

4.8

0.60

25

mainder

2.4

9

hardware

trade

0.60

SV2

7.1

0.10

1.82

6

arena

of

same

0.10

9

1.30

line
of
farm
and machinery

related

represent

to

1954.

that
•

he obtained from
or

VANCE, SANDERS & COMPANY
Devonshire

111

Boston 9,

6i

YORK

Street

Mass.

CHICAGO

Broadway

no

South

LOS

LaSaile Street

2IO

ANGELES

West Seventh Street

pur¬

$2,600,000
be

that

of

expended

ap¬

these

in

con¬

a

with

the

expansion

Industrial, Mining and Oil Securities

Manufacturing

of

the

Co.

is

manufacture

and

en¬

and

wide

9

0.50

9V4

5.4

variety of special¬
types
of
machinery
and
equipment used by the mining,
construction, oil and gas indus¬
tries, and by various fabricating

9

0.60

9%

6.2

and

processing companies.
The
believes that it is the
largest manufacturer of mining

company

6

1.00

131

0.8

Members:

machinery and equipment in the

products

Toronto Stock

United States.
Dec.

;

!. ;

1954

31.

date.

Bid

sale

and

prices

ask

the

or

quotations

last

E. H. Miller

•

■
.

Add 3%

,

,\

to trans¬

is

,

Among

a

on

page

Opens

11

MONROE, La.—Elbert H. Miller

"'

Continued

54

engaging in

ness

a

securities

busi¬

from offices at 607 Erin Ave.

King Street West, Toronto—EMpire 6-9971

Hamilton, Kirkland Lake, Timmins, Noranda, Rouyn, Val d'Or

Private wires connecting Branch Offices, New York and all other leading Exchanges

I

having LARGE QUANTITIES of
URANIUM

Offices:

SELECT group of

Canadian Uranium Mining Companies
PROVEN

Calgary Stock Exchange

Winnipeg Grain Exchange

of

as

are

,

Exchange

Canadian Stock Exchange

sale

•

Add 3'/c to translate into
U. S. funds.
§ Adjusted for Canadian-U. S. rate
of exchange.
late into U. S. funds,

Asked,

corporate

expected

in

imple¬

14

a

may

authorized investment dealers

and

gaged

sports

Mersey Paper Co., Ltd

prior

Prospectus

ized

Complete

Quotations

tax cost.

the

to

funds

5.2

a25

flour
milling;
bakeries, etc.

and

holdings of Canadian stocks

(2) reinvesting all net earnings at low

improvement of the company's
plants at Franklin, Pa., and Mich¬
igan City, Ind.

name

Massey-Harris Co., Ltd

Newsprint

added

5.5

1.80

handling;

operation of

be

is

will

Joy

Toronto

Maple Leaf Milling Co., Ltd.

31,

com¬

nection

gold producer

operates

Dec.

the

sale

Ltd

&

price

of

5.5

gold producer

Owns

and

(1) investments in the

and industries of Canada by means

of diversified

re¬

com¬

seeking long-term growth of

subsidiary, Joy
Co.
(Canada)

general

It

funds

6

Maple Leaf. Gardens, Ltd

•

be

resources

of these de¬

general

proximately

Canada

Mines,

will

for

poses.

in

MacLeod-Cockshutt Gold

ments

to

Canada,

NEW

loan

Canadian

company's

Mines, Ltd..

Grain

bank

a

used

Ontario

proceeds

Manufacturing

con-

Bros., Ltd

Wholesale

Ontario

way,

in

principal through:

Ltd., outstanding in the amount
of $1,000,000
(Canadian). The re¬

"B"

Macassa

net

from the sale

pany's

tracts

Eastern

debentures

■

Purchases

Lewis

less

A mutual investment company incorporated

outstanding in that principal
amount.*
In
addition, approxi¬
mately $1,020,000 will be used to

Laurentide Acceptance Corp.

.<

the

(1954) LIMITED

pany

Luz Mines Ltd.ji

Ltd.

The

years.

of

to pay all bank loans of the

in

Nicaragua gold producer

•

debentures

redeemable, regular

ceived

3.5

S.

controlling

co.,

a

bentures, $9,759,000 will be used

International Power Co., Ltd.
Holding

maturity, re¬
weighted average

the

12

at

mills

paper

the

calcu¬

co.—Op¬

operating

General Fund

the

prices ranging from 103%% to
par
and
sinking fund redemp¬
tions may be made at par.

ness

Canada

paid

in

be

Of

erates

have

at

7

and

be

for

than
will

Ltd.

International

will

sinking fund

a

..

Corp.,

Purchases acceptances; also small
loans and general insurance busi¬

La

to

sulting
7

Industrial

of

to retire
$18,750,000 prin¬
cipal amount and to leave $1,250,-

000

Corp.

Holding

debentures

lated

of

Hydro-Electric Securities

J:

Canada

was

interest.
benefit

Brass

1975

& Co., and Adamex Secu¬
Corp. at 100%, plus accrued

rities

3.6

chemi¬

Manufactures large variety
metal products

due

Joy

sinking

yesterday (March 23) by
an underwriting
group headed by
Hallgarten & Co., R. W. Press-

cals, etc.

Hahn

debentures

prich
8

$20,000,000j

made

and

gypsum

industrial

Based

Dec. 31,

31,

1954
—

Gypsum, Lime & Alabastine,
Canada, Ltd.

Quota-

of

Manufacturing Co. 3%%

% Yield

Extras for

Years Cash

Offering

Approx.

Including
No. Con-

ORE

(Commercial value)

are:

Morgan

Co.

Montreal Stock Exchange

)

MEMBERS

&

| Canadian Stock Exchange

CAVENDISH URANIUM MINES CORP.
Eight months of
proven

of

up

a

extensive

RARE EARTH MINING CORPORATION

for

a

d'Armes

PLateau

3971

Uranium, Thorium, Zirconium

large uranium ore body
value, which without

interruption extends

507 Place
Tel.

drilling has

commercial

A shaft is

length of

an

2250 feet.

Drilling

MONTREAL, CANADA
now

under construction and

adit has been driven

over

200 feet.

Forty-seven drilled holes have been
completed on four separate anomalies.
Company has already blocked out large
quantity of uranium ore as well as

results

clearly demonstrate
contiguous ore bodies of
much economic
importance. The prop¬
erty is two and one-quarter miles long.
additional and

thorium and zirconium.

INVESTMENT
CAVENDISH

URANIUM

CORPORATION

loom

MINES
two

as

of

CORP.

and

Information

on

RARE

EARTH

MINING

SECURITIES
the

MOST

MINING DEVELOPMENTS in the Bancroft

IMPORTANT
area

of

URANIUM

Canada.

DesRosiers & Co.

both companies available

members

canadian

JAMES ANTHONY SECURITIES CORP.

427

37

WALL

STREET




$3

BOWLING
NEW

YORK

5, N. Y.

GREEN

9-4290

ST.

stock

JAMES

exchange

STREET

MONTREAL

Tel.

plateau

1

5853

WEST

i
•

54

(1418)

The Commercial and Financial
Chronicle

Continued

from

Cash Divs.

53

page

■

No. Con¬

...

•

I

McCabe

Grain

secutive

12 Mos. to
Dec.

Divs. Paid

Midland

&

Corp.,
Deals

Ltd

in

in

Makes

first

and

1954

Quebec

20

5

Co., Ltd
quality

face

exploration

6

1.00

17.50

Wide

5.7

specialty

timber

Mitchell
Brass,
metal

Makes

paste, shaving cream
semi-liquid products

1.00

7

4.5

22

7

1.00

6.2

KPA

warehouse

in

goods

§0.40

7.2

141/4

0.20

6

9

0.85

18%

4.5

gold,

3.65

products

0.80

7

10

Sullivan

73

1.15

34%

" " 3.8

grocery

Works, Ltd.___
and

21

5.5

special

;

Finance

Corp.,

lif'

-

,

Ltd.
40

6.0

6

1.40

451/2

3.1

9

1.00

14i/2

6.9

0.30

22.00

1.4

8

sales

2.40

6

installment

Gas

Co.

Ltd.

3.00

55

5.5

5

1.00

102

1.0

ob¬

of

variety

storage,
distribution of

and

Co., Ltd

1.35

5

45

Canada,

____________

Production,

writing

transmission
national

gas

United Steel Corp., Ltd._____

3.0

Steel

paper

plate

and

welded

steel

products

Ventures Ltd.
7
suits

1.00

silver

and

17

5.9

Holding,

other

and

investment,
promotion,
and
development co.

exploration

Viau
5

0.09

0.75

12.0

Ltd

Biscuits

and

Western
Mines

gold

(1944)

Ltd.

0.02

7

0.26

27y2

■

Quotations
price

5.9
*

0.18

6.15

2.9

producer

from

to

Dec.

that

Bid

3'/o

to

translate

into

sale

and

prices

ask

the

or

quotations

last

are

sale
of

as

U.

Add

3%

to

trans-

'

trading,

Asked.

13

page

1954

31,

date.

1954.

Add

a

Continued

in

S. funds.
t Adjusted for stock
dividends, splits, etc.
§ Adjusted for
Canadian-U. S. rate of
exchange.
late into U. S. funds,
i Inactive issue.
No exchange

Mines,
6

business

represent

prior

Dec.

paving contractor

Consolidated

Ltd._______

i-

;

■

•

1.625

Grocers

Wholesale
grocery
Western Canada

7.7

producer

7

Quebec gold

confectionery

cadmium

Ltd.

Montreal

9

5.0

8

Union

8.0

merchan¬

.

2.00

of

products

Purchases

5.5

-

storage

Iron

plate

Traders

Standard Paving & Materials

General

9
cold

fl.46

10

automo¬

products

related

Quebec

and

—

ligations

Ltd.

&

Steel

production

r

0.50

appliances

"B"

and

bond

Stadacona

Works,

locomotives

general

4.4

lines

Zinc,

Ltd.

Storage

6

Silver Standard Mines Ltd.

Refrigerating &

Operates

dry

and

production

Montreal

milk

retail

Rolland Paper

other

and

&

related

of

0.68

etc.

tooth

for

Locomotive

Ltd.

and

8

Ltd

chain

1954

Canadian 5 *

•.metals'

Silknit Ltd.

Ltd

containers

Diesel-electric

of

Lingerie, | swim
rayon products

Containers

'Montreal

3.9

51

other

and

0.03

Stores

Operates

1954-

9

household

to

Dec. 31,

stores

Toronto

Amer., Inc.

bars,

High-grade

(Robert) Co., Ltd.__

tube

§2.00

store

and

papers

6

Prod., Ltd. "B"

variety

dising

r

products

bronze, nickel
products

Modern

v

.

8

_____________

7.8

producer

Robinson, Little & Co., Ltd._

Minnesota and Ontario Paper
Co.

bolts,

Wholesale

Newsprint,

3.60

producer

Quinte Milk

brick

company

other

gold

Bushings,

financing

&

0.28

and

Thrift

zinc

and

copper

Pressed Metals of
6.5

3.05

.

4.4

9

Mining Corp., Ltd.

Pamour Porcupine Mines Ltd.

5.0

Canada

0.20

tive

27y4

on

Paymts.

Dec. 31,

Carson

Holding co.—interests in

1.20

Based

tion

31,

1954
—

Taylor, Pearson and
(Canada) Ltd.

Operating public utility

Normetal

Dec.

Divs. Paid

-'3.4

Quota-

12 Mos. to

—

alV/z

6

____

line

operates

secutive

% Yield

-

Extras for

Years Cash

—

Ontario

Mining Corp of Canada, Ltd.
Holding,

Paymts. to
Dec. 31,

Canadian $ *

1.00 •

9

Western

Brick

Co., Ltd.

Grain

___

grain

elevators

Milton

Pacific

tion

1954*

1954

Newfoundland Light & Pow.

on

Dec. 31,

31,

1954
—

Based

Quota-

Paymts. to
Dec. 31,

1954-

Canadian $ *

Approx.

Including
No. Con-

Dec. 31,

31,

0.60

8

Cash Divs.

on

dealings

Approx.
% Yield

Including

Years Cash

grain

Co., Ltd. "B"

tion

1954
—

Cash Divs.
Extras for

Dec.

Divs. Paid

..

Based

Quola-

12 Mos. to

Years Cash

'

General

No. Con¬

Extras for

secutive

Canada-Dynamic Domicile of
Enterprise Capitalism

Approx.
% Yield

Including

i

■

i Thursday, March
24, 1955

..

Banking

Is

Now

Stronger,

Healthier and More
Competitive

Along

Banking's New Look

In All Walks

ices include popular
checking ac¬
counts with no minimum balance

requirements, savings accounts,
personal

loans

payment

Of Life

on

basis,

a

monthly

re¬

orders,

money

Christmas clubs, and safe
deposit
These services have de¬

facilities.

•

parted sharply from tradition. The
of bank checks to pay house¬
hold
bills, for example, was a
convenience not known to
use

• •

many

housewives

generation ago. To¬
it is coming into widespread

day
•..

and

more

lands

many

more

are

men

and

women

in

service of Canada's

lion.

unique international

In

than

leading life insurance
more

years

installment

dividuals

than

all

twenty countries around the globe, highly

do.

Banks

million

two

certificates.

the

are

installment

impact

middle

group

simple. With
steeply graduated

of

growth

avidly

so

of ttee- consum¬

is

answer

income taxes

the

on

the

at

wealthy* and
time

same

of

income

groups, it is logi¬
cal that banks have
sought to re¬

place

Furthermore, thousands of
over

all

for

a

smaller

accounts with

a

number

of

large

larger number of

accounts drawn from the middlesincome group.
The rise of the-

being

middle-income

has

group

chiefly responsible for the higher
level and greater
stability in the

administered

demand for goods which contrib¬
ute to modern
living—such as au¬

by the Company in accord¬

tomobiles, electric appliances and
TV sets. By
adjusting to the needs

with the wishes of those who fore-

of
a

sightedly planned for their protection.

consumers,

banks

are-

playing

major role in creating the

ditions

under

which

the

con¬

higher

demand for these products can be
made effective. At the same

time,
protecting their own fu¬
by tapping a new source of

they

Over $2V2 billions

are

ture

paid to policyholders

business.

deposits at

a

time when corporate

This is

before -the
waited
The

beneficiaries since

must

be

salesman

a

credit officer.

Each

SUN LIFE OF CANADA
HEAD OFFICE

vertising, in the
with

public

lations and
and

ure

'/.it

..

,t.




toward

retail

bank¬

ing is good business. More than
that, it reflects a change in the

MONTREAL

ness.
t'/t.tt.t./.

trend

m

bankers approach their busi¬
Banks

for

the

first

time

of banks

concern

and

community
in

even

decor

the

of

re¬

arcnitec-

their

segments

newest

buildings.

has

I

tion

recent

since

caused

some

of

banking

been

for

a

emphasize competi¬
to

have

mergers

question

whether

tending
toward
Actually competition,
monopoly is the key factor in
was

monopoly.
not

the current

of mergers.

wave

prospective

C h

merger makes

good

Our

e-Manhattan

a s

be¬

not

sense

the resulting bank will be
bigger but because it will be bet¬
cause

ter—better
the retail

able

New

unlike

to

York

field.

compete

City

with

banks

in

New

State,

and

Illinois

York
some

other

states, authorizes branch banking
within
restricted
and
specified
areas.
Chase, which has 28

branches, almost all on Manhat¬
Island, and the Bank of Man¬
hattan, with the 65 branches it
tan

The

of

appearance

bank¬

new

ing
premises
today
contrasts
strongly with the conservative
buildings of old. Classic columns,
cold

marble

interiors,

wired-in

and drab colors

are

disappearing in the newer build¬
ings. Perhaps the modernistic ap¬
pearance

al's

new

Fifth

Avenue

branch
Trust

of

■

in

and

the

New

who

some

old

of the Republic Nation¬

building in Dallas,

or

43rd

Manufacturers

York,

shock

may

accustomed

are

the

Street

to

However, the archi¬
Skidmore, Owings and Mer¬

rill,

by

the

way,

have

just

won

the 1955 Gold Medal of the Archi¬

tectural; League of New York
In

Manufacturers

Trust

for

branch.

event, these banks are
pioneering and, in my opinion,
any

are

the right track.

on

They seek
to
attract
the
public by being
open and light and by using warm
colors.

The

furniture

comfortable
Tellers

are

and

is

well

simple,

designed.

at open counters.

atmosphere

is

friendly

The

and

in¬

Further than
free

many

this, in suburban

banks

parking
drive-in

the

are

provide
Others

now

facilities.
windows

banking transactions

driver's

where

be han¬

can

seat.

County

handed

out

is

a

far cry

ing operations
ried

on

30

or

as

In

bank,

to

dren and dog biscuits for the

This

are

largely in the boroughs of
Bronx, Brooklyn and Queens —

combined
tution

give the merged

insti¬

city-wide coverage which

a

neither alone could claim.
It is a
remarkable fact that there is vir¬

tually
two

duplication between the
systems or for that

no

branch

matter

to

in

phase

any

significant

any

of

the

degree

business

of

the two banks.
There
cial
In

are

banks

banks

14,000

some

in

New

the

York

commer¬

United

States.

City

alone,
57
approximately
560'
Chicago, there ^ire 72.

have

outlets.

Clearly

In

this
makes ;for
highly
competitive activity.. It is also a
fact

,

that

only

banks

compete

in

with

Chicago
one

not

anpther

but also comepte
effectively with
those in New
York, Boston, De¬

troit, and San Francisco, to name
only a few cities, in providing
loans

and

services

on

a

nation¬

chil¬

dog!

from the bank¬

they

more

were

years

car¬

ago.

wide scale.

Moreover, banks find

themselves

viting.

areas

brings to the merger—and which

the

style.

tects

lollipops
The

a

than *it

aggressive

cash.

way

ty/Mt/StfiffawftA'/tSt././/„',

in

as

com¬

petitive

long time.

other

Westchester

govern¬

than

well

as

change is evident in
and
imaginative ad¬

one

in

rather

today

bank is

other

economy,

extent of the

from

invested

securities

in.

come

peting with others for available
business' and new outlets.
The

dled

funds

days

bankers

to

executive

have

ment

when

business
bank

treasurers, eager for maximum
earnings, are tending to keep sur¬

1871

sharp depart¬

a

1930s

for*

alert

plus

and

would any other

as

from the practices of the

ure

been "this

safeguarded by Sun Life policy proceeds

ance

profitable, just

with

banking today is
stronger, healthier and more com¬

have become sales conscious.
They
now
try to sell their services and
seek new business wherever
it is

tellers cages,

The

the

beneficiaries the world

of

in¬

account

Why have banks gone

owners

policies and

40%

to

today - almost

now

after the business
er?

over

credit

whereas

loans.

qualified members of the Sun Life organi¬

of

1954, they had more
billion of installment

outstanding.
Twenty-five
ago,
relatively
few
ex¬

about

zation look after the interests of the

consumer

late

$8y2

credit

From key centers in

no

1940,
such
credit
extended
by
banks amounted to only $1% bil¬

tended

company.

perhaps

service has grown so much as in¬
stalment credit.
As
recently as

availing themselves of

the benefits of the

But

use.

a

the

in

other

competition

financial

with

institutions.

Chicago, for example, they

In

com¬

pete with insurance concerns, fi¬
nance

loan

companies,

associations,

savings
credit

and the securities markets.
of

course

come

and

unions

Then,

the government has be¬

more

of

a

competitor in the

field of finance than
many believe

necessary.

petition

in

The keenness of

com¬

banking today is be-

Volume

Number 5414

181

f. The Commefcial and Financial Chronicle

.

and

well-being

have

If anything,

yond dispute.
increasing.

become

is

it

Here

All this competition acts as an
energizing, stimulating force in
bringing
about
constructive
change. It has been a powerful

aloof.
that

developing retail bank¬
Since this involves many

ing.

per

has forced

by

banks

of

The day of the handwritten
ledger-book is behind us.
High
speed business machines for han¬

in

are

oping

credit for

in

firm

ing

of

engineers in determin¬

how

electronics can best be
adapted to our operations. These

advances

ramifications

for

having

which

one

important

Their

-

increasingly

has

its

of

aware

Banks perform a
unique function in that
are
the institutions which

rather

bear

heavy responsibility
ministering the nation's
is

banking,
our

ad¬

Although the profit
firmly
entrenched

supply.
tive

in

money

as

mo¬

in

in other segments of
bank
executives
to recognize that they

economy,

have

come

must

examine

icies from

problems and pol¬

standpoint of the
This was not al¬
so—particularly
in
days
the

when

our

economy

less

was

less

technical

themselves out.

and

a

does

which

they form

be

staff

Dr.

Lawrence

head

formerly

..

of

Haf-

the

Re¬

application-of

His task will be
adapting atomic enerav>;tn
industry.
Through him
we believe that we are helping to
in

effective

speed
find

peaceful

discoveries.

atomic

We

use

of

hope

to

in which bank credit
applied to an important

ways

can

be

new

field.

Peaceful
on a

for

use

of

atomic energy

significant scale is something
the future. For the present,

the ability

air¬

plane in a bomb has quite a dif¬
ferent implication. No longer can
self.

country afford to live by it¬
Ocean barriers do not pro¬

tect

us

this

from

the atom.

The air¬

coupled with the rise of
imperialistic communism in Rus¬
plane,

sia, has exposed every
country to the
astation
or

no

'us

to

part of our

possibility of dev¬

by air attack with little

warning.

These facts force

seek friends

common

these

will

preferred

purchase

25%

defense.

in building a

The




the

of

risk

of

the

of

a

The

20%.

during
Oct.

last

de¬

leased

the

fiscal

year

amounted to
Net income was $4,31,

Join Investors

Planning

•

have

been

added

the

to

staff of Investors Planning Corpo¬

ration of Pennsylvania,

417 Grant

an

strength

Kenneth L. Wentz With

Blyth in San Francisco
(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Ken¬

More¬

vide

the

Wentz

L.

neth

with

ciated

has

become

asso¬

Co.,

Inc.,
the

Blyth

Russ

Building. Mr.

past

was

&

Wentz in

officer

an

of

Weeden

Co.

&

Upham & Co.

(Special to The Financial Chronicle)

will be sold to pro¬
SAN

Calif.—Ed¬

FRANCISCO,

financing. Ih
banking system for
the first time will be in position

ward

without unreasonable risk to par¬

in

financing

the

be

able

to

export

assure

L. Sheridan has been added

staff

the

to

of

Harris,

Upham

&

manu¬

It

rebuild

to

it

Thus
in

this

and

world.

is

have

undergone,

continuing to undergo,
changes. This progress is
good for it expresses the dynamic
are

many

qualities of the world
'From what I
I

convinced

am

the

have

we

seen

live in.

of banks,

it

As

the

SAN

Palmer

group,

banks never have

needs

present.

of

the

times

than

As they contribute to

at
a

be expected

is that the 90c rate would

believes that such increased reserves will be

The company
the

In

major

Glenn

Freeman,

W.
and

Ewald

H.

areas

served at retail by Columbia, the cost of

natural gas is considerably less than the cost of
heating with oil or coal. As a result, there has been a substantial
demand for gas for space-heating.
In 1954, the cost of heating a
with

heating

in Columbus, Ohio was $168 for oil, $118 for coal

typical house
with

and

natural gas only $82.

H.

Solbach

years

made it necessary

state regulatory commissions for restrictions upon
additional space heating. Such restrictions have
in various sections since early 1947. However, in

of

of gas for

use

been

in recent

limit increases in industrial sales and to obtain

to

effect

in

1954

the

supplies of gas from the southern Louisiana area

the added

and

additional

becoming

quantities

available

from

under¬

ground storage for peak loads resulted in the lifting of these re¬
strictions.
In 1954 about 100,000 new house-heating customers
to

added

were

the

lines

of

the

system

number were added to the lines of other
at wholesale

an

undetermined
are served

by Columbia subsidiaries.

Columbia

million

and

utilities which

Gas

work

expects to spend

about $220 million for con¬
(of which about $70

during the next four years

Of this amount, about $70 mil¬
depreciation, depletion and retained

will be spent this year).

will

earnings

be

obtained

from

(less sinking funds), leaving about $150 million to be
In addition, about $25 million of
At the end of 1954 the company's

obtained from sale of securities.
bank loans should bb refunded.

the staff of Mutual
Fund Associates, 444 Montgomery

$600 million capitalization was about 49% senior debentures,

Street.

ever,

have

joined

subordinated

debentures,

and

42%

common

stock equity.

9%

How¬

the company feels that the subordinated debentures can be
as equity since their conversion into common stock is

considered

A. T. Geyer Resumes

holds for them.

a

FRAN CIS CO,'Calif.—

George

they will rise to

had leadership more in tune with

can

will

lion

(Special to The Financial Chronicle)

challenge and opportunity the

future

that

Pipe Line to maximum capacity on a year-round basis, but
also be necessary to increase present reserves by about!

state

struction

Three With Mutual Fund

apparent that banks

country

had to dip into surplus in 1952-3 and it would like
surplus before increasing the dividend rate.

earned
best

the

"regularized," by making the quarterly rate 22V2C. This situa¬
tion appears to be understood in the Street since at the recent
price around I6V2 the yield is about 5V2% or nearly 1% more
than the general average for gas, companies.
The company expects to continue its rapid growth, though
at a declining rate; sales for 1958 are estimated at 663 billion
cubic feet compared with 487 billion cubic feet in 1954, an in¬
crease of 36%
in the four-year period. The company expects to
obtain some of this increased gas by using the new Gulf Inter¬

the

(Special to The Financial Chronicle)

helping in the economic develop¬
the free

even

The company

approvals

\yith Irving Lundborg

price
SAN FRANCISCO, Calif.— 1
of their exports in cash immedi¬
Shannon M. Drew has become af¬
ately and without recourse. I feel
filiated with Irving Lundborg &
,sure that this corporation, when
.it commences to function, will be Co., 310 Sansome Street, members
only a forerunner of other tech¬ of the New York and San Fran¬
niques
which
financial institu¬ cisco Stock Exchanges. Mr. Drew
previously with Merrill
tions will develop as a means of was
expanding our own trade and Lynch, Pierce, Fenner & Beane.
of

6Mi% were allowed they could
presumably being based on

if

unlikely, however, that the 90c dividend will be
if the earnings show more substantial coverage.

appears

increased

for Columbia

facturers of 80% of the sales

ment

while

$1.44

The demand for natural gas

of ex¬

ports on a term basis, and yet will

shares;

(these estimates
normal weather conditions).
around

earn

Co., 232 Montgomery Street.

ticipate

million

20

on

17%.

Joins Harris,

necessary

that way, the

1954 the

still earning only about 5.3% on its capital (in¬
cluding contingent earnings) which compared with 3.9% in the
previous year.- If the company were permitted to earn 6% in
1955 it is estimated that this would permit earnings of about $1.28
was

company

obtainable.

willing to buy the senior notes of
AOFC which

making a total of $29 million.
Despite this progress in clearing up its rate cases, in

be

ad¬

believe commercial banks will be

in 1954
cases),

purchase costs increased $22 million in 1953, $3 million
and about $4 million for this year
(based on pending

About

Street.

down pay¬
Export-Im¬

the risk will be spread over
many
importers in many coun¬
tries.
With
the
protection this
spreading of risk provides, plus
the further backing afforded by
the equity of the corporation, we

to release nuclear en¬

by dropping it from an

ergy

wish¬

of

advantage

over,

energy.

help

these

manufacturers

will guarantee
ditional 25% of the risk.

Division of the Atomic En¬

peacetime

to

Sales

the

risks.

eliminate

not

required to make

ment

Commission. He is one of
country's leading authorities

atomic

of

because

port Bank

require bank credit as well as
other capital.
In anticipation of
this development, we have added

the

and

made

goods they export. Importers will

tremendously expensive and will

on

stores

partments, located in 38 states.

past,

been

a

will find wide adaptation
industry.
The harnessing of
this new source of energy will be

ergy

retail

491

a

by

com¬

the

In

exchange

take

to

services

in

actor

been

foreign importers by

banks

American

energy

-our

of the issue by

Smith

ing

like

of

past average, whereas the previous winter was un¬

be

will

them.

part and for the discharge of their
special functions. It has seemed
clear to us in Chase that atomic

stad,

to

and

assume

to

line with the

its

stock, and then in addition, will

world

estimated at about $1.20 on the 20 million shares
assuming conversion of the $25 mil¬
debentures.
Temperatures this winter have been about in
are

year

lion

pro¬

to

risks, but it will spread and share

industry,
must
weigh the implications of these
vast new developments—both for
the

add

PITTSBURGH, Pa. —James R.
Lloyd, John C. Pobicki, Marion H.
Ransbottom
and
Raymond
H.

AOFC

this

revolution.

Banks,

this

780,052.

guarantee.

credits have not

political

rising living standards
continuing technological

ulation,

residential and

wholesale to other utilities.

industrial and 33%

retail

the

the

exports

to

companies which

American

Enlightened lead¬

with

up

has

it

of

new

a

as

$148,601,382.

available

dynamic
age—an age which has the con¬
stant stimulus of a growing pop¬
keep

known

ended

term

ership will be required if we are
to

will

financing

general funds; the funds

ernment

work

forces

the

favorable credit terms under gov¬

our

and

in

which would be outstanding

corporation
from

pete with foreign products sold on

ognize that they must respond to
the needs which emerge as great
social

Lack

American

com¬

position in the world
central. Today, bankers rec¬

plex and

be

deterrent

strong

public welfare.
ways

to

available.

become
public

responsibility.
they

The

about 51%

are

system

sufficient, to retire 75%
cases, but
also unwilling (under the political philosophy then
maturity.'For the
prevailing) to grant adequate rate increases.
Thus, despite the
sinking fund the debentures will(
fact that the company was very conservatively capitalized, it was
American Overseas Finance Cor¬
be redeemable.at 4.00%.
The is-"\
poration, which will make avail¬ sue also is redeemable a^t the op-"" unable to earn the 90 cents dividend (80 cents regular and 10
cents extra) in the two years 1952-53.
able for the benefit of American
Moreover, share earnings
tion of the corporation*' at prices
included substantial amounts of revenues representing amounts
exporters medium term-credits tp«;
ranging from 103.30% to 100%.
collected "under bond" pending a final decision by the Com¬
companies
in
other
countries
'..General,Shoe ranks among the
mission.
which
require
machinery
and
first r'idhF--lafgest
manufacturers
The regulatory picture has rapidly improved in the past year
equipment
from
the
United
of shoes in the United States, pro¬
or so, however.
States.
Rate increases of $18.7 million were granted in
AOFC, which will be an
ducing various types of men's,
1953 and $21.6 million in 1954.
Cases not settled as of Jan. 1,
independent
corporation,
will
women's and children's shoes in
1955, plus cases filed in 1955, approximated $30 million, of which
buy foreign importers' paper. The
40 plants with a daily manufac¬
some
common stock
will be largely or
$18 million is being collected under bond.
Thus, total
turing capacity of about 115,000
increases approved and pending aggregate $70 million based on
wholly owned by Chase. Such fi¬
pairs. The company also operates
the volumes for the respective years.
On the other hand, gas
nancing has not heretofore been

enterprise

consequences.

management

of

crued interest.

ceeds

($251 million)

gas

Revenues from

business, about 53% is obtained in Ohio, 23% in
Pennsylvania, 12% in West Virginia and 12% in New York, Ken¬
tucky, Virginia and Maryland.
Despite the System's rapid growth in revenue (183% since
1946) share earnings declined steadily from $1.18 in 1950 to 73
cents in 1953.
However, last year they recovered to $1.09 and

$10,000,000
3.30%
debentures due March 1, 1980 was
made on March 22 by a group of
underwriters
headed
by Smith,
Barney & Co. at 100% plus ac¬
offering

natural

$375,000,

leading part in developing

is

also

Public

largest

,

Banks.have changed in still an¬

respect,

Of

is the

,

in the future.

other

System

.

far-reaching
our
operations

have

may

commercial, 16%

General Shoe Corp. 25-year

ing system has not fully measured
up to the task of shouldering a
major share of international fi¬

Chase, for
example, has a small unit which
devotes full time to the study of
mechanization. It is working with
a

Gas

country, with annual gross of $260 million.

seasonably warm with resulting adverse effect on earnings.
The System's major difficulties have /been three-fold:
(I)
used in part to retire a $3,000,000
Production in the Appalachian field, originally the main source
promissory note payable in instal¬
nancial operations.
ments from 1957;to 1974; to in-"... of the company's supply, has remained about constant while sys¬
tem needs have grown enormously; this has required the pur¬
crease
working capital; and for
The American Overseas Finance
chase of increasing amounts of gas from the Southwest. (2) In
additions to plants and retail fa¬
Corporation
recent years field prices of gas have been advancing sharply, incilities.
/
A
creasing the System costs.
(3) The company had to seek nu¬
good
beginning
has
been
Commencing in 1960 the deben-' -j
merous rate increases from the state commissions and the Federal
made, however, and further prog¬ tures will have the benefit of a
Power Commission; and during the Truman Administration the
ress
is in prospect.
By way of fixed
annual
sinking -.fund
of
latter
commission was not only very slow in processing rate
illustration, the Chase is taking a

the process.

in

the

may

bank¬

our

By OWEN ELY

Columbia Gas System, Inc.

sale of natural gas

plays a leading role

international aifairs,

Utility Securities

this country feel in¬

Debentures Offered

see

United States

cooperated

turers

we

Public

re¬

Columbia

principal international bank¬
Even
today, although the

ers.

devel¬

equipment but many
with manufac¬

such

have

the

Banks cannot

use.

which

in

re¬

the

General Shoe 3.30%

further experimen¬
tation and change by banks over
the next generation. Until World
War II, England and the conti¬
nental European countries were

counting, dividend cal¬
record reproducing

primary

field

a

to

men

merit

creasingly for their banks.

Here once

government.

expect to

and

general

accept

is

more

dling bookkeeping, check sorting,
culating

of

enables

they

the people of

financing of economic devel¬

favor

opera¬

tions.

currency

free,

newed confidence which I believe

would be to admit

so

which

main

stand

cannot

opment throughout the free world.
To admit this is to abdicate in

costs

reduce

to

mechanization

the

To do

work

development

a

banks

private enterprise is not ca¬

the

and relatively
unit, competition

operations,

low return

is

again

pable of contributing to one of the
fundamental
tasks of our time,

factor in
small

important to us.

which

from

55

dynamic
and
yet
stable
and
peaceful society within a frame¬

lands

other

of

(1419)

-

Andrew

his

T.

Geyer

is resuming
from of¬
Street, New

investment business

fices

at

50

Broad

City, under the firm name
of A. T. Geyer & Co.
York

progressing satisfactorily and could be expedited at any time the
co?npany should decide to call the debentures.
Considering in¬
ternally generated cash, the present ratios could be approximately
maintained by issuing $100 million debt securities and $50 million
common
stock over the next four years.
Equity financing will
probably not
while

the

be done before

convertible

1957 and 1958—in any event, not

debentures

remain

outstanding.

The Commercial and Financial Chronicle

Thursday, March 24, 1955

...

(1420)

50

We

to

it

see

shackles on the over-the-counter
of this organization.

which the SEC has put

markets

by means

More

reflect this

Controls?

And

It

would' be surprising

if all this did not give rise

early date to demand for a restoration of controls
•over
other segments of the business community where
without doubt untoward trends have developed or may be
at

an

expected to arise as a result of conditions imposed by
Washington itself. Take the urban real estate mortgage
.situation, as an example. Whatever is or is not said there
can be no doubt at all that there is a great deal of worry

is good reason for it.
family houses by the end of last
year had reached the unheard-of figure of $75.6 billion.
One year earlier they had been $66.3 billion; in 1941 they
in

new

ployers can't
place

these

Washington

that conditions of this sort can not be

unable

appear

of the

causes

and

If
developing danger¬

conditions.

to

But

If

we

all nonfarm mortgages we

include

come up

a

billion at the end of 1953,
this
was

by commercial banks, that is to say

held

from

plan

appear.

in the now

popular phrase it had been "monetized." This is more
than 16.5% of all bank loans at the end of last year.
Many of these mortgages were FHA or VA guaranteed,
largest increase during the year 1954 came in the
•conventional mortgage. Nearly $3.4 billion of the mort¬

Annual Wage
of

the

automotive

largest

why the authorities at Washington have fallen vic¬
tim of some uneasiness about these aspects of the cur¬

stand

rent situation.

But before

we

jump to the conclusion that the rem¬

edy for whatever is hazardous or unwholesome in this
situation lies in extended controls and regulations, let us
inspect the origin and cause of it

all.

First of all, the

government itself has pumped out enormous sums of
money into the economic system, or at all events has en¬
couraged the pumping. When the war was over and the
Treasury had done away with the very large reserve cash
balances it had been carrying against unforeseen emer¬

the Federal Government had a gross debt a little
billion; at the end of January of this year,

gency,

.short of $260

but

June

of

smaller

the

in

course

at

conclusions,

any

should

ashamed

be

most of

or

other "leak out at the seams."

union

It

matter of fact, leaked out in several
of these is more or less directly respon¬
the price advances in the stock market which

sible for

as

a

one

much to disturb

of the

professional reform¬
ers in the national capital.
By the end of last year high
grade corporate bonds were yielding substantially less
than 3%; prior to the arrival of the New Deal upon the
scene, 434% was regarded as about normal for such obli¬
gations. Long-term governments were down to consider¬
ably less than 234%. In more normal times investors had
•expected to get around 3M>% (a rate which would have
fceen substantially greater but for the tax-exempt provi¬
sions) on long-term governments they held. Such changes
seem

so



i

some

it

dis¬

efforts,

hope

still

that

will

be

there

weeks

have

some

of

them

some

of

them

been

names

familiar

rumors,

by

rumors—one

union plan will be

Every

my

There isn't any deal in

score.

the back

room.

want to, you can

you

predicting
how

Here's

those rumors is
opinion. I know

of

one

baseless, in

the

business

You

start

to a prediction.
strike, it will end
eventually with
an
agreement.
If there is not a strike, the agree¬
your

way

If there is

still

a

is

So

necessary.

.

.

.

have got to have an agree¬
either way. This is your

ment,

There will be

an

agreement.
Now, it gets a little tougher
from that point on. You must say
what
you
think will constitute
the
"package"
which
finally
either keeps the men at work or
them

brings
I

back

So

that the

can

you

...

you

know

are

hum¬

looking

not

for

and

hoping to avoid it;
they don't figure
to get by for nothing at all in
the way of increases, you know
know that

that

any

number of

to

open

spread

cation

or

coverage,

more

good
many
other
"fringe" benefits.
It's

make your
further

"deal"

Go

easy.

an

va¬

holiday allowances, and
miscalled

a

are

are

monej'-

employees:
straight
increases, improved pension

insurance

or

avenues

more

the

among
wage

this

me,

is

im¬

very

am a

back."

the

of

newspaperman.

question of union

the

When

rec¬

ognition got hot back in the '30s,
the reporters and editors didn't
listen

very

facturers'

.

prediction.

honest
and

and

right

It

lot of

was

view¬

hard

is

fool

to

good

a

man,

say

then,

and

But if

you

won't go
there is a

you

that

months

hence

when the eventual and inveitable

forced

industry,

bankrupt
many
marginal companies

and

Now, with the passage of years,
the unions lost that poor, down¬

trodden, under-dog appeal.

They

rich, powerful, and in some
pretty stuffy and pontifical.
got

got

the largest ones
monopoly, dependent final¬

government subsidy and

upon

want

Some of the union spokesmen

certain

and

After

Still

the

his

in

etiff
and

they

the

union

of

Where

a

year,

settle

ticking

quietly

it may go

away,

Public

"sold"

woman

that

lieve

The average

the GAW.

on

and

man

as

opinion, too, is not diffi¬
The public is not

to divine.

cult

man

a

just doesn't be¬
should be paid

much for not working as work¬

And he or she does not be¬

lieve that the employers can con¬

the

trol

market

ill-informed

mbst

Even the
think it

place.
can

question: "If the
employer isn't guaranteed a mar¬
ket, how can he guarantee this
to the

through

GAW?"
Let

esting point. The union has made
quite a lot of the fact that a group
of

serve

It

economists

ten

is

as

advisory

an

inferred

that

asked

was

the

to

committee.
committee

But the

approved the GAW plan.
fact is that it did not.

ten

is

it,

each

The
a

economists

committee

have

Their views
of them

who

are

are

formed

been

so

that

silent?

well known—all

writers and

speakers

We

of pop¬
need

would

month,

have

and

buyer would lose quite

car

his

and

would

have

scheme.

purchase
fit

to

There

enough

timing

the

would

in

the

spring, and
when the car buyer finally got de¬
livery as part of the allotment for
some
later month he might not
cars

so

eager

would be counted
If

the

year

for

or

was

had

have

a

less

to

car

accept it.

in! which

one

styling,
did not

the

among

production

would

have

a

its

reason

missed

other

some

he

car—but

on

to

most

neverthe¬

be

used

and

buyer might not get just

car

he ordered.

car

There is

ipated.

still

there

would

to be antic¬

more

Under

such

be

system

a

bidding

up
of
prices in the first half of the year,
much as we saw during the scar¬

city

period

World

after

reluctance

quota

at

models

year's

locate"' the
assume

This

market

that

an

with

end

coming.

War

absorb"

to

II,
the

new

would dis¬

place,

army

crats

would be needed

ister

and

and

I

of bureau¬
to

admin¬

police the system.

But—it could be done,

and that

is the important thing to remem¬
ber as we study the problem. It
would

result

leveled-off
could

be

in

done.

In

stabilization, the
the

a

controlled,

caricature,
the

but

it

name

of

industry would

turned

into
something like
European cartel system.

Cartelization,
word

for

it.

in

We

is

fact,

could

doubt that many of us

do

the
it.

I

would like

it, but it is not impossible. It is
simply
the
easy,
deteriorating
system of dividing up a sure mar¬
a few producers, and
risk,
enterprise,
and
growth to a minimum.

among

keeping

Inflation, of
low

in

the

course,

train

Greatly

of

would fol¬

such

increased

gram.

believing

would be certain, because

unemployment

be

never

the

for

overall

—and all of them are on record as

that

a

an

bit of his freedom of choice, of

ket

I wonder, that the

to

care¬

allotment system for distribution.

be

mention another inter¬

me

and

produce one-twelfth of such

total

and

off.

car3

calculation,

projections

growth.

the

approach to GAW: This is dan¬
gerous,
full of disaster, if not
carefully handled. Like a bomb,

"safe"

a

fully-hedged
to

some

obliged

be

replacement

on

the

entirely adopting the same

almost

would

we

ulation

for

half to six million

a

for

based

look

we* now

five and

which
intelligent, is

and

output

size, not daring to maintain
its present-day total of em¬
ployment and afraid of expansion
or risk-taking.
even

It is impor¬

demands.

wide-awake

standardized

stagnant,

and

wanted, its

close

pay

sys¬

that a formerly competitive,
dynamic, and growth-seeking in¬
dustry was obliged to become on®

for more,
attention to

struggle

to note that the press,

tant
is

editors

and

reporters

inclined to favor the working

a

ous

company

are

under

full pay-with¬

out-work, it would become obvi¬

vest!

Baron

Business

Big

you

quick

a

to get it.
run

tem of guaranteed

be

and acting,

looking,

If

is

this

way

short

a

just like
of the
past, with the dollar signs on his

to

the

supervision.

monopoly,

course,

reporter, you know.

Why
ahead

if

shortly

government

.

.

a
business

the

ly

their columns showed

and

that.

there

in

nonsense

point,

closely to the manu¬
complaints
they

that

figured

ing.

work.

package right

manufacturers

along,

trouble

to

guess out a

can

now.

I

nature

cal

yourself.

is done:

it

in

go

by deciding that there is either
a strike, or not—nobody will dis¬
pute that statement, and you are

ment

To

cases

study."

If

that

noticed

have

will

You

reporter and edi¬
I know the
independent, curious and skepti¬

accepted—just that—and another
says that a modified
plan of 40
weeks pay will be scheduled —
and others say that the demand
will
be
accepted "in principle"
and will be subjected
to "joint,

the

us.

tor from "way

by

these

with

that the

says

going

not

is

portant.

of them leave com¬
out. All of you are

some

pany

the

that

think

I

known.

GAW.

columnists,
business ad¬
visory services, that a "deal" is
in the
making.
Some of them
mention Ford as one party to the
deal;

"I

say

the magazines
and newspapers shows increasing
concern
and uneasiness over the

Repeatedly over the past several

GAW

automobile

a

is known,

editorial opinion in

very

of

would force

•

which

plainly
something else at this point.

about

you

has,

the

was

I

demand,

into

ahead of

Rumors

speak

me

the

would

roughest "labor trouble" year we
have seen in a long time is right

the

so

but

of

Baseless

Some
Let

ming

Leaking at the Seams

of

Effects

GAW

smaller

to listen to
reason
and will not accept even
a most liberal offer.
I think that
the union wants militant action.
I think that the most turbulent,

patiently live through.

us

first prediction:

places, and

members

The

The Committee

that.

and

well

negotiating in those cases will be
the play-acting which all of us

you

nearly $91 billion of this debt and which had by
June, 1951 managed to get it down to $58.4 billion, by
November, 1954 held $69.5 billion. This accumulation
of governments occurred at a time when business demand
for funds permitted a decline rather than a large increase
in ordinary bank loans.
When the economy is flooded
with funds in this way without regard to the normal de¬
mand for them, it may be taken for granted that money

true.

meetings,

was

told

union

the

of

case

companies the

lated

will somewhere

that

so."
My viewpoint and forecast are

1.

Treasury debt; last week the figure was $23.6 billion.
which during the war had accumu¬

Commercial banks,

not

say,

approve

in part.

'three

upon

you

Negotiations are
supposed to begin about April 1,

time,

on

nearly 10 years after the cessation of hostilities, it stood at
just under $278.5 billion. At the end of 1946 the Federal
Reserve banks held something less than $23.5 billion of

isn't

didn't

The

Demand

settlement

parts

companies have contracts with the
UAW which expire at the same

rive

the total of consumer credit reached $30.1 billion.
Something like 40% of all bank loans now consist of con¬
sumer credit and real estate loans.
We can well under¬

to

as

that

.

even

The Guaranteed

outstanding at the end of 1954 were VA guaranteed.
It is, of course, well known that many of these are now
being written with no down payment at all.
Concern is also being expressed in some quarters
about the rate at which consumer loans are climbing.
After a lull last year, this type of credit has been moving
up at a rapid rate since late last fall. Figures in this area
are never really up to date, but there is reason to accept
current statements that such advances have been rising

year

even

claim

public and put the facts plainly.

spokesmen will not be permitted
to make any concessions or ar¬

rapidly since the turn of the year. Reports are frequently
heard, too, about a marked lengthening of the terms
under which such loans are granted. By the end of last

gullibility,
inferential

good enough citizens to get up in

but the

gages

the

missed and thanked for its

6

page

in¬

approved

far

so

.

The

figure of $105.3 billion. This compares with $93.3
and $31.2 billion in 1941. But
is not the whole story. Some $17.5 billion of this debt

with

.

some

$18.4 billion.

were

went

and

Continued

its

this

economists

Washington about it, and there

Mortgages on one to four

used

by

long ago, that the committee had
stamped the plan "O. K."

They can

only harm by forbidding the symptoms

of

swallowed

held

do

feel,

they

that

ashamed

conditions, let them go to the root of the matter and
basic

I

One New York tip-sheet,
by a labor relations ad¬
visory office
which should
be

righted by fiat.

Congress and the others think we are
the

employ¬

unfairly

plan.

for all this than to repeat the old
"thou shalt not's." We have repeatedly found in the past

eliminate

em¬

market

put out

to think of a better cure

ous

has

economists,

ferring

the

the

control

the union demands.

as

union

The

that

control

can't

and

ment levels

demand?

the wiseacres in

now

working,

for

pay

for better

n

As

compensation should be less than

inevitably tended to make investors look around
yields than they could get on the type of invest¬
ments to which they had been accustomed. And at about
this time pension funds galore began to accumulate enor¬
mous aggregates of capital. What more natural than that
they should seek out better grade stocks, and what more
inevitable than that the prices of these stocks should
these

as

Continued jrom first page

a

pro¬

costj

the ef-

Volume 181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1421)
ficient

good

and

and

the

the

protected.

With

controlled

and lowered scope,

ume

would

vol¬

unit costs

necessarily rise. If, on the
hand, a company risked

other

greater volume
it

inefficient, the
all would be

bad,

also

to

many
mon-working
ployees if demand eased.

in

and

costs

75

to

they

ployer will foot the bill"

em¬

for

the

I

higher than it

isn't

it,

that

was

people

hope that

turn

to

it
be

with

at that—
of these fantastic

exposed

are: a sort

for what

of parade like the

Chinese New-Year

This Week

Dragon

all

—

Probably

able assets to market
the

cloth

such

a

taxpayer—and the union has been
frank

to

admit

that

its

plan

in¬
cludes the ultimate "reinsurance"
of risk

sticks!

and

That

sums

It

men.

course,

by government, which is a
fancy way of saying the taxpayer

either.

can

for

up

isn't

gentle¬

me,

pretty picture, of
but it isn't a hopeless one,
a

to

for it.

pay

Incentive would
suffer, not only
employers but among em¬

among

ployees.

The

pride

of

the

older

time

Even

for

if

we

to

the

do

wise

and

management has

challenge,

men

would be

demand

is forced

that such

a

is all

by

of

conscientious

force

what

I hope that
keep cool heads
stout hearts, so that we
may

and

out

various

N Y Slate

if

q

I

sus¬

A

and

winner

a

orderly processes and
policy of "might makes

a

underwriting

Brothers

yesterday

ing

for

|i*

of

issue

an

1957

1,

The
100.027

for

to

2005,

inclusive.

submitted

group

a

combination

a

;> V2S

and

Is,

bid

of

of

4s,

represent¬

tention to

me

just

pay

net interest cost of 2.2597%.
on
the bonds is
exempt,

of the

some

misleading

statements which have been made
about the UAW-CIO plan.
It

is

said

that

liability would
laugh, really.
ited

in

It would

operators'

ited

the

to

welfare

five

same

five

cents

It

forcing

for

fund.

forty

"automation"

is

it

mechanization.
bad.

is

de¬

of

the

Now—to
the

ting

more

into

the

it

brings
It

and

latest

put¬

Look

Motors

have

in

—

had

em¬

233,000

employees—

the

look

as

dial
at

which

specific, take a look
telephone, or go and

the

automatic

translate

mands.

Do

pened

to

dreadful

know

has

among

when

number

increased

com¬

what hap¬

bloomed

the

banks

dial's

your

operators

thing

1940

erators

you

employment

telephone
Since

so

Sure,
we

other
the
of

states.

In

the

opinion

Attorney General of the
New York, these
bonds

constitute

ing

valid

general

State

of

faith

and

and

pronounced

of

York

credit

of

will

of

the

the

full

State

will

and

the

scaled

to

yield

payment

from

of

1.05%

more

than

we've
even

brains" which

got
have
are

"automation"
"electric

supposed to do




example,

one item in
the first half of

It

exchanged

was

standing investor in equities has done little, if any, better marketwise, on a percentage basis, than many other stocks of companies
that are unable to claim any like
appreciation in their portfolios;
and this assumes allowance for
any difference in size.
Of course
longer period

a

fuller

a

measure

2.50%, according to maturity. The
balance of $7,245,000 of 1% bonds
due April 1, 1.999 to
2005, are not
being reoffered.
Proceeds from the sale of the
bonds will be used by the State of
New York to make loans to

FT.

SMITH, Ark.—A. G.
& Sons, members of

York

opened
North

of

Mr.

Street

the

at

under

D.

19

the

Hum¬

Humphries has been

with

of

for

Middle

office

Norman

associated

Boston

Ed¬

Exchange, have

branch

Seventh

direction

phries.

Stock

a

the

many

Keystone Co.
years

and

bear

in the

West.

Harris, Upham Branch
WASHINGTON, D. C.—Harris,
Upham
&
Co. have
opened
a
office

at

1505

H

Street,

of gain is registered by

10th

is

company

the

largely

frozen

As is true of the large

insurance

companies

stocks in

common

mutual funds and other trusts, the
of course, jettison large blocks of

cannot,

bear market.

a

they do not aim to do

But there

First,

is

as

the

able to continue

are

two

why

reasons

Street, members of the

Dyer

formerly in the trading

was

Secondly, with
is

ment

aware

peaks and

the

with

the

large trusts, they want to

portfolio of high grade equities the manage¬
succeeding cycle sees the highs at new
lows higher than the preceding lows. It realizes
a

through the cycle; and if it is

capable manage¬

a

& Co.,

Price

Offers

biggest

holder

1954

of

is

data

equities,

in

the

decade

ended

with

1953

not

yet available, but when it is it will
merely add strong emphasis to the existing record) registered the
greatest gain in asset valuation, vis-a-vis both companies
1 its
size class, and, with appropriate

own

adjustments, units of smaller
that in the same period showed one of
the higher percentage gains in the increase of its dividend, a direct
reflection of portfolio management.
size.

of

a

And

it is

a

the

in

industry that in 1954 scored an assets valuation
gain larger than the net gain of the entire preceding decade; and

in

instances fire

most

and

casualty insurance companies made a
better than usual showing in that decade.
Some of the gains in

asset valuations for 1954 follow.

figures,

realized

are

Included with the unrealized gain

gains and losses

This list contains units of varying
shown with those of 1953:

on

assets $old

in the

year.

sizes; and the 1954 results
1954

72,573,731

ing

.

Firemen's——

-

Fireman's Fund
-

Continental Casualty
St. Paul

Fire & Marine

14,068,686

Springfield Fire & Marine—.
Boston

Glens

Insurance.

Falls

of

ger

and

switching

estimated

cost

to

10,548,914
9,653,838

9,357,230

Associated
R.

W.

the

in

Pressprich

Rothschild
liams

&

&

Illinois
Co.

Freeman

4,868,254

Co.

Inc.;

Julien

a

Corp.;

The

F. S. Yantis

Collins

McMaster Hutchinson

&

&

Co.; ar.«d

—

Barbara

Merrill

Lynch, Pierce,

Fenner

Dixie Terminal

Build¬

Joins

Slayton Staff

(Special to The Financial Chronicle)

ST.

is

per

pany,

LOUIS, Mo.—Edward Ship¬
now

with Slayton & Com¬

Inc., 408 Olive Street.

New

Study

Christiana

Bulletin

fully in their future market action.

results

It is to be doubted that

win

instances.

Request

Members New York Stock Exchange
American

Stock Exchange

BROADWAY, NEW YORK 5, N.

Y.

Telephone: BArelay 7-3500
Bell

Teletype—NY

(L. A. Gibbs,

few

on

Laird, Bissell & Meeds
Members

cases.

Probably insurance stocks still have to reflect these

on

Securities Co.

majority reported declines in valua¬

large proportion of

&

Co.;

Beane,

120

more

Co.;

ing.

in 1953, but the 1954 results far outdid the best showing

in

&

Mullaney, Wells & Co.

d 116,063

year

F.

Wil¬

291,130

4,751,238

earlier

are:

L.

Baxter,

Michigan

Inc.;

463,819
d 549,944
d 379,452

of any

Co.;

Pollock & Co., Inc.;

of

First

d 510,712

a

offering

&

Co.;

Co.;

Co.; Wm.

d 1,161,154

companies,

than

Gregory & Son Inc.; Ira Haupt &

d 293,414

6,160,112
5,551,259

tions (d)

less

$11,200,000.

d 1,235,517
d 1,362,112

8,099,351

Fire

locomotives,

not

&

4,121,168
d 1,404,143

7,107,662

National Union

a

of

778,311

General Reinsurance

Hanover

by

Diesel freight, passen¬

69

CINCINNATI, Ohio

d 1,398,575
d 1,655,806

North River...

Northern Insurance

Com¬

d 414,369

9,327,656

—

Fire

Interstate

The issue is to be secured

d 1,202,611

12,362,384

United States Fire

National

the

of

Commission.

merce

Briggs has been added to the staff

3,841,186
623,069

21,163,522
17,661,646
17,289,198
16,442,371

to

(Special to The Financial Chronicle)

cl 1,575,016

16,053,572

Insurance

Federal

48,482,236

36,227,323

24,511,631

Phoenix

priced

are

to 3%, accord¬

are

d 8,314,299
3,855,076

28,358,029

—

1956

1,

maturity. Issuance of the

to

orization

d 7,099,008

59,015,281

Great American

Mar.

annually

certificates is subject to the auth¬

d 8,777,140

70,876,842

Hartford Fire

QQ

With Merrill Lynch

Fidelity Phenix
^

$8,400,000
series

Co.,

certificates

The

d $10,216,319

Continental Insurance

Home Insurance

offering

are

inclusive.

1970,

1953

Insurance Co. of North Amer. $95,205,341

Equip. Tr.Gtfss.

Pacific

maturing

company

The magnitude of gain in asset valuation figures for 1954 was
size that has never before been approached. There are com¬

panies

Inc.

2%% equipment trust certificates,

total

(complete

was

Stuart & Co. Inc. and

Southern

This latter statement is borne out by the fact that the indus¬

try's

&

was?

Halsey, Stuart Group

portfolio components will give it the growth it aims at
period.

a

Hutton

Secretary and Treasurer for E. W.

ment its
over

F.

Prior thereto he

yield from 2.20%

that each

that it must carry

E.

Mr.

with Uhlmann & Latshaw and

be

to pay dividends to their stockholders.

Exchange.

of

department

Company.

to

so.

case

associated

Stock

associates

this

they have entirely discounted the performance, except in a

Bastable.

East

because to unload large holdings in a bear market is a difficult,
and even an imP°ssible task. But this is not all there is to the

that

William

—

become

with Burke & MacDonald, Inc., 17

in

markets;

N. W., under the direction of Ed¬
F.

has

Dyer

Halsey,

Of these 25

branch

KANSAS CITY, Mo.
J.

be contended

United States Fid. & Guar.—_

New A. G. Edwards Branch
Under N. D. Humphries
wards

(Special to The Financial Chronicle)

Midwest

likely follows that the effects
changes are not given full weight in
insurance stocks. Thus the industry's out¬

to

this

op¬

William J. Dyer

valuation

market prices of many

legally bind¬

obligations

New

of

State

fast?

80%.

...

savings banks and

trusts funds in New
York, Massa¬
chusetts, Connecticut and certain

New

prefer to think of "Au¬

tomation"
at

in¬

1940,

233,000

they have 520,000 employees!
If you

of

American Insurance

jobs, it in¬

comparatively

As it is probable that the run-of-the-mill investor is
acquainted
with this data only
superficially, and is not so well informed about
it from one company to
another, it

decrease

them.

pro¬

For

$4,000,000.

some

Aetna Casualty

individual,

large-scale

the

parent company stock in the second half.

a

clearance.

the

ployees. "Automation," to use the
stylish term, has been going on
at GM for
14
years.
Now they
don't

appreciation of

an

lower unit costs.

doesn't

General

mostly
in

showed

cities,
towns, villages and local Housing
Authorities for building low rent
housing facilities and for slum

of

about

and

creases

is

horsepower

more

hands

duction

It

It results

income

legal

principal and interest.
Subject 1o award, $43,470,000
of
4%,
2%,
21/4%
and
2M>%
bonds, due April 1, 1957 to 1998,
are
being
reoffered
at
prices

fancy term for something which
has been going on forever. I call
good, not

for

State
are

be_ pledged for the

specter

part

as

vestments

bonds

and

—

dreadful

necessary

York

The

The

revolutionary

demand, and this is it.
me,

the

"Automation"

Some

seems

the

lim¬

limit.

that

these

mands.

to

no

is said

that
was

ton

a

pension

went

there still is

be lim¬

way

liability

cents

and

"employer's

be limited." That's

a

coal

the

1954

laws, from all Fed¬

New

and

taxes.

little at¬

a

of

the Insurance Co. of North America
portfolio in

Interest

under present

Now let

because

body of its investments.

swings in their asset valuation figures.

of

eral

Misleading Statements

Insurance, will show relatively mod¬

fluctuations

the

was

$50,715,000 State of New York
Housing Serial Bonds, maturing

21/4S,

spect

i ■■

Lehman

2s,

its disre¬

bond-

casualty writer

a

hand, companies such as Insurance Company of
North America, or the America Fore
parents, which maintain
proportionately large holdings of equities, will report greater

bull

co-managed by The Na¬
City Bank of New York

pressure

adopted
right."

Housing

consolidated

April

showed

primarily

a

or

On the other

matter.

such a
power play would be followed
by
others, as many another organized
group

Thus

that the holder of large amounts of high
grade equities merely "rides tne elevator" up and down with the

UDllC investment

I

tional

successful,

valuation

asset

stable nature of the main

It will

Bonds Offered for

group

unemployment compensation, but
there is no
gainsaying the eco¬
that

with

maintains.

St. Paul Fire & Marine,

as

better managed portfolio.

to

laws governing

erate

over

in

evident

nomic power of the union.

end

sense

be

be contrary

state

other

of having done our
duty
only as good managers but as
good citizens.
a

by

cannot

clearly

the

on

not

approval would
circumvent the legis¬

policy,

approached this

to

know

you

which

up to now.

continue

we

in

way

insurance company
Standard Accident &

as

the sober

say

achieving

lative process and

pect

and

given

holding unit such

for

rather proud of

am

popular

course

the

to

thing is unthinkable.

process

public

good

thinkable,
happen.

economic

of

little

too

can

had

upon the
I don't like

industry.

does

The

to

it, if the guaranteed

it—but it
It

ways

least part of the fu¬

see

automobile

—it

premium

I

come

at

I

as

wage

obvious

pay

off.

This is

ture,

full

paid for finding

laid

get

getting

An

courageous

thing.

younger

idle.

bad

a

be able

may

promote reason, and logic, and
good sense if we are determined

employees would hardly be suf¬
ficient to keep them
steadily at
work, I think, if they could see
while

do have

we

awhile,

the mark-down of market¬

or

convention

values, usually at the end of
or
the fiscal year.
The complexion of this change
widely, being largely influenced by the type of portfolio

will vary

a

as

the mark-up
or

calendar

a

breathing

one

assets sold in tne year,

de¬
struction, and all made of cheese¬

and

Insurance Stocks

—

of the least noticed statistic in fire and casualty
insurance company reports is the yearly
change in the value of
assets.
This figure contains, besides realized
gains and losses on

fierce

or

teeth

pale

won't,

some

will

should

guaranteed wage; he can't foot it.
The consumer must pay, either as

purchaser of the goods

Burke & MacDoualtS

By ARTHUR B. WALLACE;

dreadful

a

modernization

Maybe

claims

now

war.

like

cause

union's

"the

80%

Odd,

thing
fear!

tnat

William J. Dyer With

Bank and Insurance Stocks

tion, expansion, and development

course, would have to be met by
the car buyer. Nothing more er¬
roneous
has been said than the
statement

ac¬

—the number of accountants

em¬

prices, of

and

happened

of rapid moderniza¬

area

any

before the

a

has

in that field is what you will find

in

is

good

The rise

What

carry

to

bookkeepers

countants.

demand,

meet

have

would

with

away

57

1-1248-49

Manager Trading Dept.)

Specialists in Bank Stocks

58

The Commercial and Financial Chronicle

(1422)

Group Reports

Mutual Funds

Portfolio

Changes

changes in February in

of

several

rations

on

Portfolio
the

funds

mutual

Calvin

lected

$16.79
total

a

tion,

now

equal to
share. This compares with

net

$13.90
$1

to

Se¬

Shares

American

amounts

of

value

asset

$39,827,456,
of

assets

$29,369,315

or

The

Net

assets

Financial

of

Indus¬

Nov.

30,

1954

gain

a

—

of

The

share
closed the
quarter at $3.58 per
share, against $3.27 three months
earlier.

per

Consistent

,

vestment

the

with

policies

the

of

in¬

fund's

management, securities of 26

com¬

purchased durirtg the

were

quarter.
the

recent

than

98%

date,

FIF

had

of investments in

TV

American

this

Securities

week

sales drive

among
dealers
the shares of Com¬

on

monwealth Stock Fund.

day,

the

dealer

increased
an

Co.

from

On Mon¬

concession

6

to

8% sales charge.

dealer concession

7 xk %

was

of

out

The increased

will

ef¬

remain

fective until June 30, 1955.

The

fund

stock

also

declared

dividend,

be

to

is

The 3-for-l

expected

more

to

make

attractive

paid

on

Dealers
sales

are

pieces,

signed,

to

stock split

the

shares

investors,

the

stated.

company

for

Shares,

President

now

receiving

completely
this

invested

domestic

and

in

41

S.

I.

S.

of

is

the

in

S.

I.

new

rede¬

current

sales

by

Mines.

as

$1,248,594.

$3.35

was

per

than the opening

more

Slayton stressed that Special
Shares

Investment

"will

under any circumstances,

never,

purchase

be

to

purely

speculative

promotional ventures."

the imagination of potential

lates

shareholders," he said.
rities of S. I. S.

to

"The

secu¬

the kind that

are

professional

many

vator

were

made of
and
In

SPECULATIVE

investors

like

BOARD

of

Commonwealth
declared

Directors

Stock

200%

a

Fund

stock

of

has

dividend,

March 30, S. Waldo Cole¬
President,
announced
on

fect
not

diver¬

common

3-for-l

affect

Fund.

stocks, selected for the

the

stock

split, will

total value

of each

investment

However,

in

the

feel the

we

re¬

sulting lower unit price will make

possibility of relatively
high income. For Fkke

the

shares

attractive

to

a

larger

number of investors."

information folder and

prospectus, clip this ad

"Growth

of

in

emphasis

Alleghany

was

Ludlum

curities

CORPORATION

Established 1930

,

J£0 Broadway, New York 5, New Yorfc

of

well-established,

gressive companies
tive

of the

Filpd.

is

the

se¬

objec¬

of

pany

tive

diversification is
of

dations

one

of the foun¬

prudent

investing,

management

The

the

" A Se¬

$400 million Well¬

amount

Fund's

Stock

this

attain

seeks to

largest

February 28, the Fund's

investments, according to

industry
follows:

classification
Chemical

(14.3%);

were

and

as

Drug

Oil

(13.1%); Electrical
and Electronics (8.9%); and Elec¬
tric Power (7.8%).
The initial asset value per

dividends

of

of

amount

realized

points out that Well¬
ington ranks among the country's
20 largest corporations in number
stockholders.

of

was

D.
in

comments
will
of

some

whole

the

on

velopment,

tion

of

6

healthy de¬

a

the

for

increase

period

in

was

his director's

he

back

descriptive folder and
for
Canadian
Fund,
Inc., a mutual fund with assets of
$30,878,000
comprising
common

Realizing that stocks in

a

securi¬

the

at

ties tipped by a well-known com¬

mentator,

the fantastic rise in

or

ment of their

on

the

announce¬

synthetic diamonds,
a good many people

to realize that

have entered the market with the

hope

corporation executive for 15
having recently been As¬

short-term

of

speculative

and

Maxson

Personal Progress
Robert

Burkholder has been

S.

appointed

repre¬
In¬

Commonwealth

for

sentative

wholesale

a

as

vestment Company and Common¬

wealth Stock

Fund, S. Waldo Cole¬

President, announced.

man,

Burkholder,
Franklin
has

Lan¬

graduate of
Marshall
College,

and

a

active

been

of

native

a

and

Pa.

caster,

in

the

mutual

Prior to this

value

the

income

or

involved.

stocks
it

of

prospects

has

gin

on

despite the mar¬
in force, and to

limitations

this

extent the

ably

severely

the

most

business for about

has

decline

prob¬

punished some of
and unthinking

recent

in

years.

New

and

York.
In his

capacity, Burkholder

new

will maintain headquarters in San
and will work with

Francisco

in¬

vestment dealers in Northern Cal¬

Oregon

ifornia,

speculators.

Francisco

San

both

10

appointment, he was
with Reynolds & Co.,

associated
done

been

borrowed money,

and

Washington.

Fund Assets

Up Again;
Plan-Openings

Assets

the

of

117

mutual

fund

members of the National Associa¬
tion

of

were

$6,453,899,000 at the end of

Investment

was

Companies

announced today.

tions by

$37,998,000
February, down from the $47,-

in

redeemed

299,000
this

in

in

purchase

regular
shares

mutual

during February, 151

plans than the 8,618 opened

January,

ter

of

of

the

previous

were

20,462

quar¬

accumulation

opened.

shares

in

of

February

in January and

short-term

and

obligations

held by the 117 mutual funds rose

$349,683,000 at the end of Feb¬

$99,-

net

$99,858,000 in

at

Cash, U. S. Government securi¬
ties

ruary,

497,000, compared with $109,783,-

fund

option

time to convert their holdings

fund

totaled

mutual
the

set value of their shares.

to

J mutual

have

last

of

reported,

into cash equal to the current as¬

record

During the fourth
1954,

any

December

that

out

shareholders

of

above the

Association

the

pointing

plans for

January

and slightly

year

year,

Investors opened 8,769

redemp¬

were

$35,005,000

390,000 at year-end 1954.

Share

investors

at the end of

January and $6,109,-

Record

a

1954.

December

This compares With $6,240,767,000

000

Manhattan Bond

Assistant

and

L.

Co.

lying
of

plans

FUND, /Inc.

W.

Vice-President of Edward Ennold

a

ATOMIC DEVELOPMENT

of

fund

in

Fund, Inc.

Controller

Secretary

profits, irrespective of the under¬

cross-section" of corpo¬

Fundamental Investors, Inc.

only

been

years,

sistant

entered

"We

has

Vice-President of Mu¬
tual Fund Sales, Inc. He has been

past couple of

stated.

look

to

the

Johnson

A.

Johnson

appointed

uninformed

in

market

letter.

discourage
specula¬

robably

p

the

February, it

NEW

A

Barringer

Moreau

tion that has undoubtedly

share

the

cents

value

decline

MARKET

x\.

Herbert

a

STOCK

THE

risen to

asset

Herbert

folder which

of Commonwealth Stock Fund has

$31.12, as of Feb. 28, from
$20.00 per share on Aug. 1, 1952
(first offering date). After giving
effect to a capital gain distribu¬

and

securities

profits paid by the Fund in 1954
and since 1930 are given in the

"Some

of

Diversified Investment

representing 5.5% of total
This

assets.

$307,903,000,

or

compares

4.9%,

witfi

at the

end

of January.

Fund, Inc.

designed to provide

a

Diversified Growth Stock Fund, Inc.

variety of

EATON & HOWARD

EATON & HOWARD

BALANCED FUND

managed investment

in

*

Mutual Fund Sales

ington Fund.

Purchases

#

Fund,

of $60,000,000.

General Electric
Commonwealth

MUTUAL FUND.

e

H. A. Johnson V.-P. of

sponsor

FOLDER, titled

tributors of the

have

Wiiiiimisill

»•

also

Quarterly Dividend Distribu¬

month.

MUTUAL

paying power."

Wellington Company, national dis¬

///

m

soberly the

tions," has just been published by

more

(hrouish

is

Investment

excess

NEW

fund

ATOMIC SCIENCE

the

reflect

type in Canada, with

any

in

assets

the

i/iccsl

portfolio

and

of

to

appraisals of future dividend-

Ltd., the largest investment com¬

months,"

prospectus

pro--

Bullock

Canadian

the

Wheeling.

56%.

pal through investment in the

its

lists

in

it

of

will

of Jan. 31, 1955.

as

Calvin

of

"It

shares

steel

income and princi¬

and address.

NATIONAL SECURITIES &

„

a

shareholder's

bonds,

RESEARCH

of

inception

and

1952

holdings

Simmons.

increased

Mr. Coleman said "this

16.

April

added.

the shares."

dividend, which will have the ef¬

SERIES

»

Flintkote, U. S. Plywood

their own accounts. objective by investing in securi¬
They
are
generally subject
to ties with such characteristics in
wider
price fluctuations than
several different industries rather
established market leaders, which
will be reflected in the price of than in just a few," Mr. Coleman

March

and mail with your name

Ele¬

holdings and purchases

for

buy

man,

preferred and

&

were

and

investing in special
situations, over-the-counter secu¬
rities and foreign issues,
stimu¬

record

NATIONAL

a

Purchases included rails—

building shares, profits
taken through sales of Otis

securities believed by the manage¬

payable April 7, 1955, to stock of

list of

&

In

price.

THE

Invested in

in

Hudson, Erie, Gulf Mobile
&
Ohio, Illinois Central, Nickel
Plate
and
Pennsylvania — and
Howe Sound and U. S. Smelting
& Refining.
ware

As

A MUTUAL INVESTMENT FUND

•

Fund

Chemical, Continental
Engineering, Curtis
Publishing,
Food
Machinery
&
Chemical, International Harvester,
Loew's
and
Steep
Rock
Iron

of March
On that same

S.,

prospectus,

ment

Growth

the
Avco,

by

Chicago & Eastern Illinois, Dela¬

share, 35c
Mr.

realized

Blockson

investors.

of

real

since its

growth

it

position

allow

and

accurately

more

its

income,

the

strengthen
market,

purchaser

Consolidated

It eliminated Con¬

were

Aviation

early stages of their
development, due largely to the

were

Institutional

1975,

the

of

less inflated

a

sound

for

securities

fund, the tax advantages it offers,

&

the

curity That Has Paid 100 Consecu¬

Capital

classes in the

shares

of

stocks available at

in¬

and

necticut River Power 3%'s of 1961.

a

purchase of additional

the

Fund?", sets

characteristics

Oil 3's of 1984.

companies,

foreign,

for

Canadian

the

titled

Edison 3's of 1979 and Continental

rate faster than that
Managed
Funds'
other
ten

growing at

Merck

Co.

Is

folder,

A

campaign.

sified

3's

Profits
Now

in

&

its

System

announced.

pany,

Pfizer

It

Bond Fund included Columbia Gas

Hilton H.
the com¬

of

Carbide.

positions

new

Purchases

launched last Sept. 27 by Managed

Slayton,

Union

"S. I. S., by

200%

a

April 7 to shareholders of record
March 30.

took

holdings in oils, rails,
building, and metal stocks.

date, the offering price, which in¬
cludes sales charges as described

Launches Drive
began

Investment

and

and

creased

5.0%.

Funds, Inc. to invest in "special
situations," has passed the $1,000,-

16,

North

electronics,

and

SPECIA L

Assets

Stock Fund

Fund

Williams

business

and

000 mark in total assets,

value

asset

Stock

dustrial

industries

as

ment,

period.

Common

chemicals, 14.9% of total assets;
oils and natural gas, 12.0%; in¬

growth

Co.

$4,664,324.

a

The

concen¬

Inc.

profits in selling all holdings of
four
blue-chip
issues — Allied
Chemical, Otis Elevator, Sherwin-

such

took

trial Fund increased to $33,599,724
at Feb. 28, 1955, from $28,935,400

At

"What

motive, 7.6%; and electrical equip¬

in

made

was

descriptive

forth

the

In addi¬

year ago.

a

share

12-month

more

in

trated

the

of

sponsor

extent," Mr. Barringer

added, "that it has served to make

price to

Group,

in¬

18

capital gain distribution of

a

panies

covering
dustry classifications and

equipment,
11.5%; transportation, 8.9%; auto¬

share

a

per

on

stocks

common

by

fund.

Securities, Inc. were an¬
nounced recently by Distributors

By ROBERT R. RICH
NET

Bullock,

recently

the

"To

Canada's

in

issued

was

of

Group

TOTAL

participating

growth,

Thursday, March 24, 1955

...

STOCK FUND

companies participating
in activities

resulting

Managed
PROSPECTUSES

from Atomic Science.

AVAILABLE

FROM

YOUR

ON

LOCAL

THESE

MUTUAL

INVESTMENT

FUNDS

DEALER,

OR

EATON
■

&

HOV

\RD

INCORPORATED

Cleveland

Chicago

itT TJtt FACTS AND FREE PROSPECTUS

ffUIC OfVEtOPMEM SECURITIES Hi
WD THIRTIETH STREET, N. W.

WASHINGTON 7,0.0.




Los

Hugh w. long and company

24 Federal Street

Incorporated

BOSTON

Angeles

San Francisco

Westminster

at

333

BOSTON
ESTABLISHED

1924

Montgomery Street

SAN

FRANCISCO

Parser, Elizabeth 3, New Jersey

Prospectuses from

your

Investment Dealer

or

the above.

Number 5414

181

olume

ontinued

from

.

The Commercial and Financial Chronicle

.

.

had

14

page

(1423)

its

influence

the

on

living

habits of people, resulting in

Common Stocks

migratory
trends,
with
people
moving from cities to the subur¬

Fiie and

as

ban
to

Casualty Insurance Investments
eigh

■ndeavor
f

is

possible

adverse

much

nuch

the

can

ortfolio
lso

the

can

the

how

preferred

decline

estimate

of

value

decline,
in

the

stock

value,

and

potential

de-

line in value of

corporate bonds,
nunicipal bonds and Government
onds.

This

ecline

total of potential

sum

be

must

weighed

care-

ully against the company's capi¬
at and surplus.
One

he

need

only

to

back

go

to

1929-1933

period to trace the
ffect
of
demoralized
security
arkets
upon
the extremely
trong 'capital fund positions of
ertain

of

anies.

the

In

ecline

ated

several

of

was

the

hat

leading

fire

huge

surpluses

the

extent

elimi-

were

and

an

The

bonds

over

riods.

In

without

reducing the

of shares

id

happen

under

There

has

thus

nade

restment
nd

and

can

extreme

been

far

ad-

policy of

haracter

ictates

of

of

verage,

a

in-

company

The

operations
conserva-

policy

bonds

larger

—

and,

the

on

shorter maturity port-

olio, and
of

the

company.

more

investment

olding

fire

a

casualty

much

a

distinction

no

between

casualty

a

se

num-

surpluses,

economic conditions.

erse

ive

create

illustrate what

will

his

to

greater caution
stocks

common

in the
in

than

a

ire

portfolio.
This is due priarily
to
the
greater
volatile
ecord
of
underwriting experiin the casualty

nce

lso

due

the

to

abilities

in

are

that

the

form

of

re-

Once

have

we

established

philosophy,

mbark

we

the subject of comstocks in a fire and casualty

on

ortfolio.
rade

In

late

the

1920's, high
stocks
yielded

common

the

bout

slightly less
n
the average—than high grade
orporate bonds, and in that peiod

same—or

Federal

the
Tax

ome

at

was

Corporate

In-

relatively low

a

igure, so that the differential, net
fter taxes, was not of any great
this

period

yielded considerably
grade common

than

lore

tocks.

in

stocks

Preferred

oment.

high

We

familiar

all

are

the level of interest rates since

n

also

nd

"orporate
nd

the

in

level

insurance

ays

the
Tax

rate

from

come

Thus,

taxable

Gov-

corporate bonds.

high

long-term

a

company

of 52%

fully

rnment and

fire

A

Corporate Inon the in¬

Federal

ome

Federal

Taxes.

Income

casualty

of

stocks

common

much

ticularly

orporation bond with a 3% gross
eturn yields
1.44% after taxes,
he

February

and

ross

o

that

aid
r

in

on

end

the

of
tax

a

of

of dividend

15%

tax of 7.8%

a

exempt to

are

85%

effect

income.

3%

Dividends

net.

stocks
of

extent

yield

1995

1.44%

n, common

he

Government

40-year

new

V due

total,

52%

is

income,

the total divi-

on

It

to

is

in

net

investment

yield

in

considered

bursed

axes.

Period

Whereas
there

ifference
xes

3.92%
the

in

was

net

no

late

1920

significant

between

the

bonds

vs.

from

after

net

after

common

ocks, today these figures would
indicate a net yield after taxes
on

common

stocks

of

approxi-

iatly 2.7 times the yield on high
rade corporate

bonds and in

ex¬




market

income is

dis¬

not

generously to the in¬
company's shareholders.
cushion

or

reserve

can
be created as a
protection
against future market declines, so
that so long as an insurance com¬

has adequate resources to
absorb temporary market or paper
losses, this additional income is
pany

powerful

a

advantage.

longer the

stock

And

market

the

be

may

depressed and the longer the
more

nearly

is he right, because
large accumulation of ad¬

the

of

expenditures

for

sewers,

public utilities.

lation with its huge
as

contrasted

of

25

years

social
a

power

base

narrow

other

Amongst

ago.

which

measures

favorable

buying

the

to

have

influence

in

been

sustain¬

ing the economy is unemployment
insurance. In the years to come,
pension funds will become an ad¬
ditional

ditional

income

from

ments

will

bank

increasingly important

sustaining and contributing force
toward maintenance of purchasing
power.

Both parties have the responsi¬
bility under the Employment Act
of 1946 and

certainly we have had
indication that both political

every

will carry out this man¬
It, therefore, appears that
long-term inflation, with the con¬
stant erosion of purchasing power,

parties
date.

will

continue

not

The

next

50

it has over the past 50
The question seems to be
of direction but

one

to de¬

as

Thus, if interest rates can
expected to rise at best to a
which would only be mod¬

gree.

power

in

stocks

mon

and

must

also

unions

fire and casualty

a

Other
tion

factors

of

in

the

considera¬

stock

common

equities

the role of the Securities and Ex¬

which has
important factor making

Commission

of the worker, and it is reasonable
to assume that it will no longer

been

be possible for industrial

concerns

has meant full disclosure of facts,

large scale reduction
costs through sub¬

figures and other information hav¬

cuts, except in

affairs, operations and outlook for
companies listed on the regis¬
tered
Exchanges or engaging in

operation

stantial

mass

special

circumstances.

wage

All of the factors

just previously

mentioned have had
tant

influences

fire

and

value

casualty insurance

discussed

to

up

and

stocks

comon

portfolio

pany

impor¬

very

the

on

desirability of

in

a

com¬

previously

limits, and these factors

an

for sounder common

stocks, for it

ing important significance

the

on

Self-regulation
by the Exchanges has had the ef¬
fect of making for sounder prac¬
The

tices.

supervisory

taken by the

measures

Federal Reserve Sys¬

tem have also been a factor in the

will continue to be important long
term
influences.
In
addition
to

that,

ments

which

must study other factors

have

important bearing

an

investment

on

policy of fire and
casualty companies. The level of
interest rates is always an impor¬
tant

consideration,

common

and

with

the

speculative
Corporation manage¬

influences.
are

very

the

and

erative

much more coop¬
relationship with

much

stockholders

enlight¬

more

ened, for they go out of their way
in most instances to discuss their
affairs

complete detail, giving

in

increasing influence of monetary

The Factor of Reduced Dollar

Purchasing
Over

has

and

high

very

reduced

present

grade

have

the

decline

in

hand, dividends

stocks

the

and

ognition
trends

in¬

future

An

policy must give

to

social
their

and

value

of

the trend of

and

on

period

real

likewise, has increased.

investment

rec¬

political

impact

the

on

the dollar

and

on

security values. Com¬

stocks

mon

this

over

increased

come,

in

fire

a

and

company

casu¬

portfolio,

therefore, provide the stockholder
that

with

protection

and

against

in¬

against the decline in

purchasing

power

of the dollar.

During the post-depression

pe¬

riod, the country has undergone a
great social revolution in the form
of the

significant redistribution of

income.

58%

of

family

today's

units have incomes of $3,000-$10,C00

as

compared with 29% 25 years

with these percentages

ago,

in

stant

of

earned

in

terms

all

less

today's

received
cash

family

90%'of

The

year

group

of

units

in

this

the

total

18

earn

these
group

total

$4.000-$7.500

contains

million

in¬

group

families

35% of the total^and this group

gets 42% of

more

both

than

come
a

an

trebled

In

the

the

of

pects.
today

in

purchasing
of

in¬

power

of goods on

demands for all types
a

wide front.

The redistribution of income has

bearing on future pros¬
The leading corporations
are much
more seasoned,

in

important factor in the
of
equities
has

consideration

investments by trust
by
other types
of

increasing
impor¬
tance. The history of the past two
years in the use of these mech¬

funds.

The

anisms is interesting and it is now

funds

recognized that it is politically in¬
expedient to permit interest rates

factors

has

assumed

rise

to

really

to

which

level

a

the

compensate

would

corporate

investors for the risks involved in

ownership
that

is

a

low

would

It

affair—easy

one-way

and

bonds.

of

monetary management

interest rates

popular and the

an

affair, with transac¬

the

Exchange by the in¬

on

important daily.

of

Act

of

more

institutional
tions

1946

the

in¬

common

growing acceptance
suitable investment media
its

as

of various types

bility of promoting national
ployment,
production
and

ing

pur¬

increasing
of

stature

and

stock

which became law in 1946 charges

em¬

All these factors

the

to

contribute

the government with the responsi¬

a

fire

the

of funds, includ¬

casualty

and

busi¬

ness.

power. This is the law of
the land and assumes the govern¬
can

and

must

and/ maintain
This
has

means

no

bring

that

choice

government

forces

influencing
of long-term

to

this mandate.

all

the

merits

carry

out

of

use

tools at its command

to

The political life of

party is at stake if full

any

ployment

em¬

is not maintained.

Federal Reserve Board

The
take

must,

and

bonds

to

the

assume

not, Congress might

insurance

amend the

Federal Reserve Act, and

unwisely,
ous

so as

perhaps

to result in griev¬

damage to it and

to

its

non¬

partisan character. Under the 1946

fact.
are

Act,

relatively
The

the

easy

inferences

obvious.

policy

to¬

money is a
to be drawn

Increased

volume

of

into

the

economy

when business shows

any

signs

sliding

ex¬

money

will

of

be

injected

and

further

any

improvement of business be¬

cause

expanding

credit

require¬

been

very

Great care in se¬

prices.

is

one

willing

fluctuations

quite

extreme,

still

be

can

is

and

If

market

ignore

to

which

prepared

to

stay with such common stocks
for whatever period is necessary,
profits

should

nevertheless

than

ter

several

for

portfolio able
of market

do

well

to

use

after

companies,

pro¬

have a definite
place for common stocks in their
portfolios. The industry has been
a
buyer of equities in the past
and
unquestionably
will
con¬
liabilities

tinue

just

be

to

long

remain

as

they

as

were

short

a

last

words,
much
while

back

and, consequently, in study¬
long term growth profit po¬
tentials you must give important
consideration to the present level.

ing

National

Gypsum Stk.

Offered at $40

Sh.

a

National Gypsum Co. is offering
its common shareholders of record
March

21,

1955,

rights

additional shares of
the basis of

on

one

sub¬

to

scribe at $40 per share to

464,325
stock

common

share for each

six shares held.

Subscription
rants
will
expire at 3:30
(EST) on April 4, 1955.

war¬
p.m.

An underwriting group headed
by W. E. Hutton & Co. and Blyth

Co. Inc. will purchase

&

any

un¬

subscribed shares.
Net

proceeds

be

as

at

as

yields

obtained

are

rea¬

the income
other

from

investments

of

and

just

price-earnings. ratios

reasonable levels.

However,

received

be

to

from the sale of these shares will
be added to the

for

company's general

expenditures

addi¬
capi¬

plant

on

tions and additional working

tal,

for such corporate pur¬
the company may deter¬

and

poses

as

mine.
the

During

mately
tion

of

tions

last
spent

10

years

approxi¬

$78,000,000 for construc¬
new
plants, for gypsum

limestone

and

deposits, for addi¬

and

improvements to its
plants and properties and

other
for

the
has

company

replacing equipment.

National

Gypsum Co. is

an

im¬

portant unit in the building mate¬
rials industry in

the United States.

The

company

sum

wallboards, lath and sheath¬

ing;

manufactures

base,

and

stuccos

gypsum

gyp¬

finish, white, molding, dental and
sound control plasters; hydrated
and ground lime and limestone;
asbestos-cement products includ¬
ing corrugated siding and shingles;
Keene's

Cement;

lath

structural

and

insulation boards;

acoustical fibre
and

accessory

metal

casein and a
complete
line
of
non-oil
base
paint products; rockwood prod¬
ucts and acoustical products. The
products;

texture,

principal trade

name

the company markets

under which
its products

is "Gold Bond."

Cunningham-Cleland Co.
SAN

DIEGO, Calif.

—

ham-Cleland

Company

formed

offices

pheum

with

Theatre

gage in a
A.

Cunning¬
has been
the

in

Or-

to

en¬

Building

securities business. John
is a principal of the

Cleland

firm.

Form Financial Investors

buyer in the future

relation to

in

can

media

a

long

so

sonable

so

other

twice

only

the

over

In

stocks

at

pros¬

instances

many

paying

these"

selling

The fire and casualty

stocks.

ance,

in

doubled

years.

are

you

growth

average

have
than

risks

viding adequate high grade secu¬
rities as reserves against insur¬

that

pansion of money will follow with

potentialities
leads tp the

proportion of com¬

reasonable

mon

so

will

fluctuations
a

heed of this mandate, for if it does

a

relative

the

stocks

that

conclusion

various

the

of

appraisal

Stocks

for

Place

Definite

about

The

the

but

Fire and Casualty Company Have

employment.

full

time pe¬
50
years.

lection is still most important.

metal

chasing
ment

sonable

market

becoming

is

vestment

Employment

stock

The

funds.

always

unpopu¬

have

stocks

the

of

one

a

profitable when purchased at rea¬

endow¬

stitutional investor growing more

lar.

The

and

college

money

are

reverse

companies, savings

insurance

and

funds,

mutual

have

as

today

be

important

become

have

ment

can

in

creased

banks

that

amount

equities has been in¬
substantially.
Pension

invested

life

laws

of

liberalization

the

governing
and

economy

been

funds and used from time to time

strongly entrenched.

funds

our

positions and

have sound financial

been

the role of

years

government

ward

1929

This redistribution

mass

last 20

since

in the hands of
large numbers of "people and has
created

range

Government

Employment

has resulted, quite naturally,
tremendous increase in pur¬

chasing

narrow

a

in¬

are

income. It has

numbers, and

power.

in

this

one-third

families

almost

come.
now

and

1929

per

Today almost two-

all

million

con¬

Two-

power.

$3,000

prices,

about

of

meas¬

of

than $3,000 a year and

more

get

dollars

family units in
than

income.

thirds

32

of

purchasing

thirds

rates in

low

has

a

Another

seem

alty insurance

flation

and

money

Increasing Importance of Rolfe of

drastically. At

very

time

other

common

man¬

fluctuation.

has

bonds

that real income is 75% since 1913.

the

terest

fiscal

as

the outlook is for rela¬

tively cheap

of the dollar
the real income

well

as

power

declined

On

having

agement,

Power

long period of time the

a

purchasing

figures and an insight into policies

management

stocks.

1953

Common

financing.

public

reduction of excessive

one

of

sharpest, in so short
riod, over
the
last

is

change

in

ber

pects,

portfolio.

ture

weighing the fu¬
earnings and spending power

note of warn¬

a

ing—a sort of yellow light. The
rise in this market since Septem¬

be
made,
but
the, holder
might
still be faced with many unhappy
erately higher than at the pres-v
moments.
The return or yields
ent time, and consequently still
obtained
from
common
stocks
furnish relatively low real income
have been reduced considerably
to a corporate investor, and if the
over
the last several years.
The
inflationary forces over the next
price-earnings ratios of many of
decade or longer continued to be
the
leading companies, particu¬
a
real threats/then there can be
larly those that seem to offer bet¬
no question about the role of com¬
be

level

be considered in

to effect any

just like to raise

more

increasing
of the

the

over

as

years.

company

strength

automatically expand

deposits.

years

Moreover, the economy is now
supported by a much broader base,
by a very large segment of popu¬

cor¬

porate investor may be wrong, th-^

now

becomes

the

equity, assuming that

substantial

or

use

capital

too

surance

A

in

an

might bo
.against
a

reserve

o

this

through

equities

decline

value of this

that

apparent

rural areas.
This
its effect on new

is having

a

investors,

corporate

quite

increase

tocks, the current yield of 4V4%

to

become

from the angle of relative income.

the
tandard & Poor's Index of Fifty

gross

Thus,

have

desirable holding, par¬

more

ured

grade

con¬

for quite

taxes, at a comparatively
high level since about 1937. Thus,

with

he changes that have taken place

This

now

after

been

upon

vs.

some time, with the ratio of stock
yields to bond yields, particularly

a

now

can

mu¬

stocks

on common

stocks yield 4.20%.

mon

the

road

pe¬

on

highs. Currently munici¬
bonds yield 2.46% and com¬

from

for outstanding losses.

erves

same

yield

dition has continued

much

a

insurance

of

two

the

yield of 3.24%

pal

nearby

the suburban

houses, on the development of
shopping areas, building of schools
and construction of churches, on

at their

industry and

fact

percentage

arger

would

municipal

vs.

these

1929

this additional

er

Gov¬

nicipal bonds averaged 4.24%
a

the

water and

stocks

common

he stated

tock

yield

of

comparison of yields

a

possible

common

net

relationship

same

consequently, these
ompanies were forced to reduce
value of their

the

portfolio

and from

areas

trend

bonds.

prevail in
on

times

average

ernment

com-

instances,

such

of three

cess
on

ex-

each

portfolio—that is,

stocks

ommon

under

conditions in

egment of the
iow

much

how

estimate

ex-

One must

portfolio.

to

loss

a

reme

dollar

the

carefully
in the

osure

mass

59

in

closing

I

would

SACRAMENTO,

Calif.—Finan¬

cial Investors Incorporated

gaging
from

in

a

offices

Donald

C.

of the firm.

securities
at

1716

Holmes

is

is

en¬

business

Broadway.
a

principal

60

The Commercial and Financial Chronicle

(1424)

that and realize that what is good

Continued from first page

the

for
of

Stock Market Is the Thermometer:

is

country

Continued

12

page

us.

We

not

dare

we

perhaps

by

relentless

most

that

forget

threatened

are

the
ever

enemy

an enemy which talks
while waging ceaseless war.
be a cold war that we face
today but it is still a total war—
psychological, economic, political,
military and moral—all in one.

recorded,

Not the Fever

from

all

for

good

Thursday, March 24, 1955

.,.

peace

Can Foil Employment Be
Achieved Without Inflation?

It may

the

of

multitudes

of

judgments

buyers and sellers about the many
factors
which affect business —
business is like today, what

what

it

will be like in the future.
Distinction

by the continuing cold war.

of

so

This

distinction

crucial

is

fever

We face

one.

the

between
the

and

a

kind of

one

which

world
at

the

peace,

actions

business

taken

war

different
or of the

by

managements

have

which

policies

inflationary

at

of the effects of

f

!

inquiry,

must

deal
well

is

functioning
of

our

of

Most

words,

other

market

stock

index and, more

what

important,
state

the

as an

actual

the

is

economy.

the

upon

has

There

before

discussion

much

been

reasons—in

opposite

confidence

in

enterprise,

or

in

talk

of

credit flow¬

ply of stocks to meet this demand
has not increased proportionately.

Changes That Push the Market
Upward

which

have

this

•The

condition

of

structural

stock

market

in

developed

To list

years:

is

are

tries has been financed

earnings

own

write-offs

rather

recent

indus¬

through
and

has

been

cent

This is evidence of a
At the same time,

years.

small

to

institutions, like life

in¬

companies and savings
banks, have entered the market

surance

result of the

a

changed laws

their holdings.

on

A

further

stimulus

mand for

the

to

stocks has

protect himself from in¬
going into the stock
He

and

the

de¬
from

come

tax-exempt

founda¬

tions of various kinds.

The

capital gains tax makes
many investors reluctant to part
with
their
holdings although,
let me add, I do not favor any
reduction

in

that

neither

has
to

tax

at

this

time.

individual

study

age

sickness?

or

You

Eliminated

Be

Can

stock market through

tion

small

the

one

has yet made a

thorough

study of how the stock market has
been

altered

by

changes. Such
be

of

one

these

other

and

study might well

a

the

most

constructive

results of this Committee's
Thus

have

changes

appears

to

the

been

upwards.

market

must

one

to
ask

factors could

same

to aggravate any serious

serve

downward

trend, if such

regulations.

saver

full

The

form

of

also

be

rates

as

re-examined.

of

This

a

being

should

With

tax

determined

by the tax

more

company

makes

every

they are, business

as

are

and

more

exemption

steep

decisions

of

tax

posi¬
individual.

or

exemption

ever

far-ranging in its economic
impact.
more

However, after these and other

changes
find

are

surveyed,

that~ the

most

still

we

No form of

regulation that may
take the place of
policy covering
all the inter-related problems of
finance

national

and

This Committee is

of the

aware

proposals which have been of¬
fered during the last two decades
to

halt

tion.

or

The

what it is
to

of

burden

debt would be

ures

needless

reduce

infla¬

national

our

hardly one-half of

now

if effective

meas¬

prevent inflation had been

taken at the outset of both World

whole

healthier

been reduced

these

of

if

state

two

so

War.

would

economy

be

Our

in

had

taxes

a

not

hastily after each

wars.

I

opposed the tax reduction that
was voted last year. That remains

position

my

should
pose

today.

pledge

Both

parties

themselves to op¬
as long as the

tax reductions

budget is unbalanced and
tional

our na¬

security is in jeopardy.

Calls

for

Balanced

mains

the

market

condition of




the

re¬

econ¬

suggestions

although

would

I

is also why I am against
reduction of the capital gains
tax at this time. A revision of this
would improve the function¬
ing of the stock market. But as
long as the budget is unbalanced,
to
reduce
anyone's taxes is to
tax

shift

the

from

heavier
ments

burden

one

group

burden

of

the

of

the

cold

war

and to impose a
upon other seg¬

economy.

spirit

them

is

good

country. We should get

for

away

the

from

advisory

an

fruitful.
and a half in pub¬
lic office, I wish to say that Presi¬
dent
Eisenhower held firmly to
relationship
After

a

year

Council's func¬

this concept of the

folly,

adventurous

helped make America great. You
should

also

weigh most carefully

whether what has been

happening

in the stock market is not in larger

the effects of
been taking

to

response

a

which

inflation

has

raised

rates; of

understandable clamorings of

the

policemen,
or

colleges

their tuition

teachers

firemen,

or

other civil servants for pay in¬
to offset the reduction in

purchasing

and

of

Every

power.

government

city,

—

Federal—is struggling

state
to ad¬

just these demands.
What

kind

to

use

of

is

the

President

aration

his

of

the

in

prep¬

Economic

annual

Report to the Congress.

If

is

to

persist

President
regd
the

mechanics

of

should

lead

not

the

stock

to forget

anyone

is

market

mirror of

a

If our general
security policies

economy.

nomic

and

eco¬
are

sound, the stock market will ad¬
just to them and we will not need
to worry about a possible collapse
of

the

market.

serve

our
can

If

do

not

pre¬

security

and

we

national

our

national

credit, then nothing
have lasting value.

Therefore

(1)

should:

we

Determine

national
what

just

security

than

entire

the

what

our

both

what

and

our

allies must do—and then do

Forego

until

all

tax

defenses

our

and

it.

signed

fidence

made

are

se¬

the

in

economy

the

soundness

than

some

of

our

reduction

in

the national debt.

(3)

war

is

ourselves

required

and

a

to

win

to

the

real peace.

that government
been

public

government and do

required
needs

to

Given

what is

if

they

are

told

be

done

and

why.

effective

an

what

shield

of

defense,

we can build an economy
which can continue to support the

freedoms

we

cherish. By

replacing,

fidence of

guard
even

as

stability,

we

can

con¬

stand

long as may be needed,
preserving for our

while

children

their

and

opportunity to
through their

children

better

own

the

themselves

strivings.-

1953

in

general

that

recall

will

You

down¬

turned

activity

ward

during the last half of 1953.

The

Federal

Government

was

President

The

his

Cabinet
of

branch

Executive

the

to

clear to

it

made

and

that

government

he

the views of the Council se¬

took

standing ap¬
pointment with a member of the
Council, ordinarily the Chairman,

riously.

had

He

a

Arthur F. Burns, every Mon¬

day morning. At weekly meetings
the

Cabinet, a brief presenta¬
of the Council's view about

tion

economic

developments

was

a

standing item on the agenda. The
Council was represented, formally
informally,

or

of the

all

on

top

policy-making committees of the
Federal
Government,
including
the National Security Council, the
Defense Mobilization Board, the
Advisory Council

In¬

on

Financial

and

Mone¬

In ad¬
President established
in 1953, by Executive Order, the
Advisory
Board
on
Economic
Growth and Stability, with rep¬
dition,

the

resentation

at

the

Under-Secre¬

tary or Assistant Secretary level,
to
assure
close liaison between
the Council and those government

agencies administering major eco¬
nomic

programs.

Small

benefited

from

throughout

support

the

Other

ment.

vided

that the
strong

then,

wonder,

Council

perform

analysis

our

govern¬

departments

of the

most

to

staff

own

who

were

in various fields of
economic inquiry. The actions of
many departments of government
of

course,

speak

national economy, and,

Federal officials
President on eco¬

many

the

to

nomic affairs.

Yet, the Council of
is unique in

Advisers

having no routine administrative
responsibilities. It alone has the
whole

economy

combined

the

ment

are

of

of

describe the work¬

environment of the
Economic
Advisers,

made

liberal

ance

way

Council
have

I

references

experiences

to

my

only

be¬
there is widespread ignor¬

personal
cause

how

govern¬

affecting it.

In trying to

ing

seeing

and

actions

or

misunderstanding

of the

in which this comparatively

youthful institution operates. Be¬
ing free from the responsibilities
of public office, I can now speak
of these matters more objectively
and

with

less restraint.

Now, you may properly inquire,
how

did

the

machinery operate?

Because^the Council

had the con¬

de¬
Concurrently,

up.

-

shifting

were

from

a

accumulation
to a policy of inventory deple¬
tion.
Unemployment
mounted
rapidly
during
the
winter
of
policy of inventory

1953-54.

By February of last year,
the civilian labor force

5.8%

of

were

idle.
of

As

as the
Council

early

the

1953,
these

of

aware

sum¬

was

of

forces

strong

contraction, which could
have produced a serious economic
recession. It perceived that pow¬
erful measures to expand private
economic

and

and

state

for

demand

local

goods and services would have to
be introduced as off setting fac¬
if

tors

economic

our

growth was
Council

The

resumed.

be

to

several

therefore worked hard on

fronts, in collaboration with other

We gave

agencies of government.
to

ment

and

support

strong

encourage¬
Reserve

Federal

the

au¬

thorities in successive joeasures to

increase 4he

cost and

the

reduce

As

availability of credit.
the

result,

a

supply rose by almost

money

$10 billion between. October, 1953,

*1954,—while bond
business- .borrowing
rates fell sharply, and real estate
mortgage financing rates dropped
appreciably. We pushed hard to
attain
monetary
ease.
Subse¬
quent events provide an almost
and

October,

prices

rose,

the

of

classic, illustration

great

flexible monetary pol¬
icy to produce economic stability.

power

of

a

of

in

and

state

of

dollars

Billions

local

investment

improvements,

construction, plants

building

and

equipment, homes and consumer
goods were made under
easier credit terms which would

durable

have been deferred had

mained

expensive

credit

re¬

hard

to

and

get.

Treasury
mend

in

worked

Council

The

and

needed

duties. Our

economists

affect the

build

fense

post-Korean

the

following

pro¬

statistical
we

consisted of a small group of pro¬
fessional

reducing the rate of its
expenditure on military supplies

mer

Council

by its people. It

experience that the
will stand by

my

American

their

own.

duty of watching the course of the

stable government and a belief in
has

he

Supports Views of the

President

Economic

Discipline

whatever
cold

which

document,

his

as

more

phrases of

or

specialists

reductions

budget is balanced.
Nothing could inspire more con¬

cure

words

dozen

a

in

changes

minor

gested

economic

requires,

do

must

we

(2)

preparation of which I par¬

ticipated. I doubt whether he sug¬

tary Problems, and the Council on

many

the American

Downward Turn

The

businesses

personal
staff.
carefully

Foreign Economic Policy.

inflation

year

change in

cyclical

his

ternational

stocks may be underpriced today.
In any case, your study of the

period, spanned an
and a half of

brief

interesting

sharply

to

stocks?

they occurred during a compara¬

In prac¬
tice, this means that the Council
prepares a draft of the document
for review by the President and

of

one

price

to

economic

Economic

of

the

National

dollars

measure

you

Advisers to

was

nor

Council

assist

of

have

perform

hope

economy.

House;

report that a city
creased
its
fares, that

in¬

a

its duties.
Again, I
will pardon my refer¬
personal experiences as a
Federal official, which, although

to

ences

I ever requested
to write, or to change anything I
had written, for political reasons.
The Employment Act requires the

in

Dr.

has

been in

have

tively

place through the entire economy.
Hardly a month passes without
some

President, it should
favorable position

fidence of the

government.
My public
speeches and my writings were
never
censored
by
the
White
tion

which

to

the fear of inflation with the

This is not the time for anyone
to ask for more at the expense of

for

or

legislate
against

attempting

human

have

Today in this country we have
that is priceless — a

any

makes

caution

something

Budget

good

stock

those

market.

stock

the

havior

the

the

that in the main it

single factor determining the be¬
of

about

sound government

defense.

confidence

mutual

of

alone

in the

a

be proposed can

others. Perhaps it is only natural
for people to think that what is

important

Summary

up,

of

Some

value,

any

That

implications

tax

or

—

have is through the
preservation of the credit and
security of this country.

trend

a

to develop.

were

tion

drive

But

whether these
not

work.

far, the net effect of these

structural

done

be

unit

group—can

economics,

may

creases

eliminate abuses of the

can

But

as

number of sug¬
gestions have been made before
your Committee as to what should
sum

part

be

to

War II and the Korean
No

time

the

able to
dis¬
tinguish between good and bad
management. And yet he must
worry constantly what the savings
he sets aside today will be worth
10 or 15 years from now.
Will
they
put his
son
or
daughter
through college? Will they pro¬
vide a real nest-egg against old

growth of tax-free pension

funds

diffi¬

by

means

nor

it

finds

saver

long

as

which

Eisenhower
A

To

the

reduced.

have been

taxes

The

war.

things lirst and

attitude

texts of the two economic reports

against

while

prevent

to

and

needed.

have not yet ended

we

can

now

them there

the rise in the national debt even

however,

have

to

put first

against

by the SEC and the Stock Ex¬
changes. But the only real protec¬

remarkable

a

able

be
can

we

Indeed, that has largely been done

mutual funds.

as

economy.

tax

growth of investment trusts and
Some

our

through

than

still

their

capital from outside.
There

these motivations

in

active

so

total

economy

stock

Many businesses have increased
enormously in value during re¬

Abuses

expansion of many

their

why

leason

both

because

few:

a

the

in

am

Our

like

fluctuations today are so puzzling

companies

But the sup¬

the

an

that

fear

would

we

be

basic

able for investment.

in

and

of

I

view

stand anything necessary for its
defense, provided we are willing
to discipline ourselves.
We may
not be able to have all the things

through inflation.

market.

number

hope

or,

for defense.

this

disagreement.

keep

ing through the economy has been
expanding, larger sums are avail¬

a

this

value of their capital will be lost

flation

are

of

future

the

cult

changes

effects

the

People invest in stocks for two

"overspeculation." Since the total

to

market

People Invest in Stocks

Why

volume of money and

Contributing

stock

sound economy.

Committee has concentrated
the
stock
market
itself.

your

in

but

The

two questions—

with

how

in

in

not

inflationary heritage.

been pursued for so long.
Your

adequate

aggression,

With

blamed for

neither

is

or

economic

any

The ther¬

mometer should not be

a

If

must be

enough to
if that fails,
to win any war thrust upon us.
Much of our weakness in foreign
policy has come about because
some
people believed that the
economy could not stand what is
deter

necessary

reflecting all the uncertainties of
nor

have

defense

a

the

itself

for fundamental causes.

Our first consideration

danger threatens today, it will be

outward
symptoms should not be mistaken
But

which

policies

half.

a

found

properly.

effect^ of the in¬

been followed over the last decade
and

problem if the thermometer is not
working

econ¬

industries, and

many

cumulative

flationary
thermometer

in the

factors

have caused the general rise
in the price level of stocks—the
dramatic expansion and improve¬
the

Thermometer and the Fever

main

Two
omy

ment

the

Between

which, in turn, is dominated

omy,

with

sharp

order to

leave more money to

spend in the hands of the
Tax

the

to recom¬
reductions in taxes,

Department

reductions

last

year

public.
add

up

billion on an annual basis.
They formed a powerful expan¬
sionary factor in private demand,
although they deferred the time
when
the Federal
budget could
to

be

$7

balanced.

Apart from tax re¬

duction, the Council collaborated
in the formulation of the Tax Re¬
vision Act of

1954 which,

by lib¬

depreciation
policies,
promoting earnings retention for
business expansion, giving a lim¬
ited
dividend
credit, and other
eralizing

,

businesses to
and equip¬
ment outlays at a high level. The
Council also supported the Treas¬
ury policy of avoiding the sale of
long-term securities in the inter¬
encouraged

means,

maintain

ests

of

their

plant

keeping long-term money

available

to

states,

local govern¬

ments, and private firms.
The

Council

collaboration

sought,

with

such

through
regula¬

agencies as the F e d e r a I
Commission, the Federal
Communications Commission, and
tory

Power

the Interstate Commerce Commis¬

sion,

to

expedite

governmental

Volume

181

Number 5414

.

.

The Commercial and Financial Chronicle

.

(1425)
actions

pending applications
utility companies • to
make investments.
We sought to
fry

on

public

all

remove

expansion
The

blocks to speedy

road

of

private investment.

Council

Bureau

of

that

the

expenditures

uled

and

affected
A

minimize

to

as

ships

sched¬

so

was

local

readjustments

hard¬

the

by

industries.

Remarkable

Turn-Around

pursuit

occupations,

curially,

in

and

from

move

have
A

in

which
shift

consumers

which

place

the

mer-

families

to place, will
unemployment.

"frictional"

changing group of workers will

be in process of

shifting from one
.to
another job,
In the United
States of America, which is an ex¬
ceptionally large, rich and dy¬

dence

jobs

and

try

unemployment

compensation
old-age benefits and the re¬

and

duction

of
tax
liabilities,
negotiated, by

country

our

the

be

somewhat

a

larger

per¬

centage of the civilian work force
than it will be in
settled

a
smaller, more
like Great Brit¬

country

production,
so

now

fallacies

the

provide

to

carry

annual

aggregate

time.

It

United

promises

States

to

a

high and satisfactory level of em¬
ployment this year. I believe that
our

recent

the

belief

experience encourages
that

can

we

prevent

serious unemployment and main¬
tain
a
reasonably
stable

price

level

in

free

a

While
with

economy.

recent

very

experience

economic stabilization is

last

25

ord

years

the

employment,
freedom

ment all

to

up

25

full

the

and

economic

time.

same

unemploy¬

through the Thirties and

entry into World War
II.
During the war years, there
was
full employment — indeed,
over-employment—but also price
which

suppressed by
economic
The

partly
network of direct

a

cotrols.

1947,

postwar

and

years,

found

1948

the

United States with approximately
full employment, but prices con¬
tinued to rise and the purchasing

of the dollar continued to

power

erode

In

away.

economic

which

an

work

there

idle.

was

was

during

of 5.5% of the

average

force

1951,

1949,

recession

In

1950

and

the

country attained some¬
like full employment, but

thing
prices also got out of hand
the

Korean

defense

with

build-up.

Only

during 1952 and 1953
simultaneously have high

we

ployment with

during
few

1952,

direct

effect.
the

did
em¬

stable prices;

there

still

were

economic

and

controls

a

in

During 1954, as you know,
of price stability was
but unemployment aver¬

record

good;

aged slightly over 5%.
clusion
do

is

that

better

have

in

in

done

United

States

is

How

We

con¬

have

future
the

promise of the

The

shall

we

the

than

to
we

the

realize

to

the

Employment. Act.

Can

Have

Full

Employment Without Inflation
It

is

my

the future

thesis that
maintain

we

public have risen percep¬
tibly in recent years. People are

applying much
tests

our

Alvin

5%

of

the

ployed."
first

Dr.

full

accept

a

reasonable and realistic definition

of

"full"

that

our

employment.

Secondly,

Federal Government pur¬

policies that release the full

sues

expansionary
enterprise
examine

of
initiative.

powers

and
these

private
Let

us

conditions

two

briefly, in turn.
The

of

of

setting

a

trial

country

able

to

its

the

likely

labor

force

be
of

even

favorable
Paul

to

Douglas,
economics

of

Democratic Senator from

Illinois,

wrote

the

few

a

Federal

the

set

too

low,

public will justifiably object

to the
come

ought not deliberately to use fis¬
policy to stimulate the econ¬
until

unemployment reaches

at least 6%

possibly
by

ment

of

Economic

Congress

Report,

have

I

of

ment

is

frictional

that

the

unemploy¬

within

a

5%

to

force.

An

varies
through
range of, perhaps,

of

civilian

the

annual

average

work

of

unem¬

may

too

high, the

be compelled

govern¬

to adopt

rigidities that

go

them, in order to attain it.
all recognize that full em¬




deal

for

with
stable

detail.

any

five

I

areas

which

pansion,
lative

has

around

to

government

when, as at
the unemployment ratio
seasonal
high point of

down

4.8%

and

below

versely,

the

of

1953,

move

level.

in

as

clear

are

soon

4%

when,

months

there

will

it

Con¬

the

the

early

unemploy¬
phenom-

ment ratio fell below the

enallv
may

low

figure of

2%

(if

signs of incipient price

were

inflation, it

was

to

restraint.

tary

one

trust the official figures) and

there

the duty of gov¬

invoke

When

measures

we

of

able

to

are

this

neriod

restrictions

in

better

jmnosed

properties.

per-

mone¬

by

the

cut

were

back

by

$3

reduced

somewhat

million,

less

than

million.

million, to $42.7

The

latter, of course, reflected the less
intensive
traffic

of

use

volume

portant

equipment

off.

The

transportation

with

ratio

was

only slightly
more
than
a
point and at 33.4% was still well
below the industry average, and
Federal

income

taxes

were

re¬

duced substantially.
Thus, share
earnings of $4.21 were not too far
below the 1953 results of $4.92.
For

the

current

got off to

pany

start.

January

17.5%

above

1954

com¬

were

the

of

like

Reflecting

weather

more

conditions

as

to pursue policies that will
clarify and enlarge the opportuni¬
ties of competitive enterprise. Im¬

ume,

the transportation ratio

portant

the

con¬

tinue

steps

in

this

direction

the

almost

the

10

heavier

points

lower

to

the

or

82.7%

for

start

the

like

of

1954

the

105.5%
The

seasonally
for the com¬

centives to innovation and invest¬

period
and for the most part bare
operating costs are not covered

ment.

in

tax

laws

which

enhance

Further progress

in¬

and

can,

were

should, be made.
Thirdly, the United States must
strengthen its economic ties with
other countries, and bring a larger

segment
world

of

into

tural

the

our

orbit.

non-communist

economic and

Our people

with

great

cul¬

have at¬

wealth

ideals

of

power

private

prop¬

free enterprise, open mar¬
kets, and competition. If the ideas
erty,

have to offer other nations of

the world outside the Soviet bloc
be

to

are

distinctive

ing, surely they

are

and

appeal¬

these funda¬

mental ideas. As a first step, the
foreign economic program recom¬
mended to the

Congress by Presi¬

Eisenhower

of

improve

all.

the

people,

build

deserves

It

material

but

it

nations

and

not

the

only

welfare

will

us

of

strengthen

our

na¬

strengthen

the

further

can

floor of

personal

and

family security now provided
through our old-age pensions, un¬
employment
insurance,
home
ownership
and
slum
clearance
Apart from

programs.

their

hu¬

manitarian

have

an

pact.

values, these policies
important economic im¬

Only
needs

when

minimum

met in

hu¬

of

un¬

or

re¬

tirement, and the opportunity

ex¬

man

are

employment,
ists for

a

case

disablement

decent home in

a

year

-

$0.62

to

net

improvement

year

-

share

a

1954

month.

the

over

While

hardly be

to

be

of

opening

relative gains

dynamic through¬
out the entire year there appears

will

question

important

be

but

in

to

will

mark

the

year

so

far

road's

sound

his greatest contribution

to

economic growth.

Over

long

a

to

recognize

the

advisability

public improvements

figures.
can

into

runs

Inadequate

curb the growth

of the private sector of the

This is mainly an
action by state and local

omy.

ments.

They

creased

the

in

recent

have

scale

years,

econ¬

of

area

govern¬

greatly
their

of

efforts

but further

largement is necessary. This

en¬

poses

difficult

problems
of
FederalState-local relationships.

May
you

I

conclude

that

business

by

reminding

cycles

Fallacious

The
vnr>n

full

s<^ond

whh'h

Doctrines
maior

the

employment,

backlog,

rendition

main+«nanrp

stable

of

prices,

in

is

of
a

demand

our

for

large war-borne

addition

to

exnanding reauirements.

currently
The ag¬

gregate amount of currently need¬
ed

expenditure

on

to

reflect

schools, roads,

cumulative benefits

additional

of

period

should continue

years

the

dieselization.

The

extensive roadway im¬
provement, with consequent high
maintenance
outlays, should be
of

completed

before

to

mechanized,

of

the

economies

less

shortly.

well

as

yard

or

should bring substantial

at
the

This

operating

faster

as

is

modern,

a

more

system,

It

long.

retarder

Minot, which is
hub

too

construct

service.

the

On

and

traffic

bright. The construction of

a

prehensive

hydro¬

complex

of

com¬

electric dams in the Pacific North¬

with

west,

abundant

consequent

has attracted considerable

power,

industry to this
dicated

that

not

as

At

the

same

and it is in¬

area

the

has

yet

saturation

been

point

approached.

time,

these

same

hydro- electric projects have been
opening

substantial

up

gated farm
traffic in

also,

areas

generally
upward
store

felt

that

trend

irri¬

new

developing

barren area.

once

a

and

should continue.

of

This,

Thus, it is

coritinuing

a

earnings

is

in

for Great Northern.

~

msmm
cough

or

...is
est

one

of the

ways mean a visit

The other six

—Any
...A

sore

lump

breast

or

growth

will

bleeding

as we

the

individual

beings and

to

enough

be

his

Yet, I think
to

now

fluctuations

bounds,

learned

if

keep

within

we

tience, courage
good luck!

or

thickening in the

or
a

discharge...Any
wart

mole...

or

indigestion

or

diffi¬

culty in swallowing... Any

change in normal bowel habits.

our

know

economic

For other facts about

that may some

day

cancer

save your

life, phone the American Cancer

Society office nearest
write to "Cancer"—in
your

you, or
care

of

local Post Office.

tolerable

have
—

about
we

are

as

allow great freedom to
in

danger signals

that does not heal

con¬

tinue to be highly important pub¬
lic problems, as long as people
behave like human

toyour doctor.

elsewhere...Unusual

Persistent

and

may

cancer...but should al¬

mean

Problems of economic sta¬

bilization

seven common¬

danger signals that

change in

there

problem of exnanding

a

area.

Operating efficiency in 1955 and
subsequent

not

are

which

the

as

service

in¬

economy.

to

industry
own

analysts expect that these
impressive trends will continue.

as¬

segment

al¬

the

Most

hospitals, water and sanitary fa¬
cilities, street lighting, and other

large

an-

to

of

time.

will

justified,

relative

whole and to its

investment regard. It was one of
the first of the major railroads

much

time

or

has

nublic

been

whole,

a

Northwestern

con¬

though they seemed harsh at the

that

as

the

post-

are

Generally sneaking,
works represent the only

at

have

in

Territory. Finally, the long-term
traffic trend has been favorable

period of years
enjoyed high

Great Northern

long

Fifthly, government must attend

consistently wider

industry

roads

con¬

pre-tax

a

cerned.

public assets.

to

margin
the

other

and

1955

best

earnings

as

appears

that

assume

working,
spending, saving, borrowing, and
investing activities. There is still

near

lower

carrier,

subsequent

tentatively it

reasonable

that

improvement

witnessed

months and

than

that

ratio

so

little

further

passe.

neighborhood, will the individual
make

cov¬

income of $0.35 a share available
for the stock. This represented a

public works
we

only

operating costs fully
but, also, there was

ered,

tronomical

security.

Fourthly,

not

year

sistently
profit

efficient

an

transportation

a

of

help

community

stronger

a

will

This

can

and

freedom, through democratic
ideals, combined with

economic

January.

basically

with

annually

supported in the de¬
decade of the 1930s.
It

pression
is

million

be

side the outlook is also considered

in

is

year

$19
to

was

interim.

poorest

than
had

improved

than

with

compared

the

result, its fixed charges now
to
roundly $8 million
annually
compared
with
more

as

pany

been

year

a

amount

vol¬

traffic

opening month last year and
overall operating ratio came

taken during the past
two, notably the opening
up of atomic energy to competitive enterprise and revisions of

have

program.

As

planned

auspicious

revenues

those

month.

favorable

the

year

most

a

cutting the burden of debt and
fixed charges, and to start an
ag¬
gressive debt retirement

all-im¬

up

ex¬

inflationary
clearly demon¬

only

equipment

the condi¬

economic

to

the physical
Maintenance of way

well

tional

a

future.

Secondly, government must

our

at

flexible

the

strated.

support

present,

econ¬

and

been

continued

on

to curb specu¬

as

excesses

booms,

in

for

well

as

our

highly

to create

power

probably represents full em¬
ployment in a practical sense, and
is a reasonable target to shoot at.
If we accept this definition, the
implication is that it would be

authorities

is set

to

policy

policies

necessary

4%

the

heavily

of

industry.
the road was

that

was

mention

requires

monetary
tions

those

rate

steel

time,

as

First, it is clear that
omy

lower

the

in

same

of

one

the

of

years.

Their

the

working off of in¬

and

operations

contrac¬

severe

controls

attention during the coming

dent

for

ventories

a

the

shipments reflect¬

about $1 million, to $46.7
and
maintenance
of

policies

governmental

ployment ratio of between 3% and

re¬

On the other hand, if the

time

not

by
ore

the

activitv

overall

simply

need

we

that results from unused

controls and the

We

their

probably

time

2%

that

raised

employment sights.
My own estimate
amount

the

on

judge

recently

both

severe

during

to

political

testimony given
gentlemen, during the
two before the Joint

Committee

inflationary policies, probably ac¬
companied
bv
direct
economic
with

shall

Troasurv and tbn Federal F^erve

production

econ¬

Northern

and

them,

economic

is

heard

year

in¬

of

release

such

or

these

they

If I have

8%.

as

ing

to

tained

correctly

past

of the labor force, and

much

as

and

loss

sources.

goal

ago

years

cal

omy

and

tion in iron

of

Great

weather

outlays

economic growth in

Government

view

is

un¬

circum¬

H.

soective, I believe that the

goal

tak¬

95%

ifest.

the

of

Presi¬

than

professor

now

that

not

more

Dr.

formerly
and

is

most

stances."

Nourse,

Council

under

that "an indus¬

—

apply

nominal

G.

the

realistic employment goal is man¬
If

an

ex¬

influences

readjust¬

year,

unem¬

wrote—before

ing this office

ernment

importance

Edwin

Truman

dent

indications

two major con¬
we

Harvard

of

force

Advisers

free economy on

that

work

Chairman

Economic

is

First,

Hansen

University wrote
several
years
ago that "full employment in the
United States means perhaps 4%

employ¬
ment without price inflation in a

ditions:

For example, Pro¬

economy.

fessor

more rigor¬
performance of

the

to

winter

recognized, it is sufficient

governmental

stimulate the economy

in

can

the

will maintain economic growth at
a sustainable rate,

unwise

if

past

Once

economy.

There

economists

are

and the

der

immediate

1946,

only

was

professional

stagna¬

"maturity"

pansive powers of such

present.

has

it

both

our

inflation

en

of

or

massive

from

always been ex¬
ceedingly difficult to measure th&t
amount
of
frictional
unemploy¬
ment with exactitude, there is no
doubt that the employment goals

only

during

development

billions at

While

now

prices,

direct

all«at

was

$4.5

rec¬

States had

stable

from

controls,
There

make

were

last

United

and

scientific

on

about $1.5 billions in 1946 to about

ous

there

in

the

not

If I read the

correctly,

two

which

do

years

happy reading.

research

en¬

couraging, the economic annals of
the

expenditures

convinced

ever

secular

the

economic

adversely affected by

spend

at

the

last

ment

market

merely

present

from

general

At

technological development, result¬
ing from a three-fold increase in

rising

the

only by those who
have inadequate
knowledge of, or
little faith in, the adaptive
pow¬
ers of
a private
enterprise, free-

omy are

probably

capacity, I

held

because of the quickening pace of

is

of

tion and economic

United' States

high. Economic expan¬
sion began anew. It is
continuing

the

than

more

remained

in

unemployment

our coun¬

chronic defi¬

a

Aside

having sub¬

productive

doctrines

the people in the economic future

1

o n a

pri¬

seasonal

its

ain.
t i

Never

Great Northern

govern¬

was

to

autumn of last year, a remarkable
turn-around.
The confidence of

Moreover, the amount of fric-

if

to encourage

as

tion

will

unemployment

kind

our

ciency of private demand in rela¬

of

frictional,

ability of

faced with

was

am

activi¬

of
ex¬

to generate additional

vate initiative.

that

these

depends, is

government

scribed to the view that

namic country, unfettered by tra¬

all

of

the

ment acts

dition,

result

a

in

of economy

ties and of the automatic increase

As

by

Washington with renewed confi¬

their

demands of

great reduction in mili¬

the

policies which release the full

pansionary powers of private en¬
terprise.
I have returned from

the

assure

and economic freedom

of production is changing,
in wnich people are free to
change
nology

the

Department of Defense to

in which the tech¬

economy

and

Budget

tary

any

with

worked

the

ployment does not mean zero un¬
employment. We undertsand that

61

wisdom,

and

a

pa¬

dash of

American Cancer

Society

f,

62

The Commercial and Financial Chronicle

(1426)

Continued from page

4

the 160 in the similar week of 1953.

V

level, failures

war

In comparison with the pre¬

down 24% from the 1939 toll of 298.

were

to

Chev¬

peak in industry truck volume last week.

14-month

a

Industry

programmed 8,600 truck completions the
past week, marking the first time since late October that it has
seriously challenged Ford's leadership in weekly erectings. +
has

meanwhile,

rolet,

February reached the largest volume
ever recorded for that month,^reports Dun & Bradstreet, Inc. Total
valuation of permits in 217 cities, including New York, last month
rose 26.1%
to $436,333,050, from $345,986,529 in February a year
ago, and 7.3% above the January figure of $406,704,008.

Operations Set This Week at 92.8% of Capacity

Steel

the confines of automotive and related consumption, says
"Steel," the weekly magazine of metalworking.
?
While

provides the major support to over-all
mills, construction is opening up at a promising

the

The result is an increasing tightness in the heavier prod¬
ucts, such as plates and shapes.
Bearing and sheet steel piling
demand is up markedly, with seasonal requirements only starting.
pace.

Up
vailed

promises on plates and structural, especially wideflange sections, are lengthening. The same is true of bar stock.

Now shipment

other important con¬

in

widening

is

demand

indicates

This

Expanding requirements for building,
line pipe, tank and similar construction, of course, are seasonal.
But there is every indication these fields will provide volume
demand this year that will rank close to the record, if not exceed
it. At the same time, such lines of manufacture as appliances and
general fabrication are providing sturdy demand. Export business
suming lines, it continues.

also is

significance of the above, this trade weekly states, is that
maintenance of a high steel production rate beyond the second
The

though automotive buy¬
midyear approaches because of labor trouble,

quarter is more definitely assured, even

ing should slacken as
or

for

other

some

reason.

buying of sheets is likely to sag along to¬
ward the end of the second quarter, producers of cold-rolled still
automotive

While

Fourteen businesses failed with

year ago.

$100,000

Wholesale Food

against 20 in the previous week.

as

Price Index Marks New Low

In its seventh consecutive

earlier, to mark a new low since mid-November 1953. The
rent figure compares with $7.27 on the like date a year
ago,
Higher in wholesale cost last week
peanuts

The

tion

Lower

cottonseed oil, tea,

sugar,

of 31

hogs.

and

a

index

total

sum

of

foodstuffs and meats in general

raw

is

the

represents

wheat, corn, rye, oats,
flour, barley, beef, lard,
steers and lamhs.

eggs, currants,

cocoa,

show the

to

the

price

pound

per

and its chief func¬

use

general trend of food prices at the wholesale

level.

Past Week

American

The

Institute

Steel

and

Iron

extend

into

announced

this time

a

operating rate of steel companies having 96.1% of the steelmaking
capacity of the entire industry will he at an average of 92.8% of

beginning March 21, 1955, equivalent to
2,240,000 tons of ingots and steel for castings as compared with
capacity

for

week

the

94.2% (revised) and 2,273,000 tons a week ago.
industry's ingot production rate for the weeks in

The

based

on

For

the

duction

of 125,828,310 tons

capacity

annual

week

like

a

A

2,191,000 tons.

month
year

placed at 1,624,000 tons

was

68.1%.

was

was

of Jan.

1955 is
1,

1955.

90.8% and

pro¬

the actual weekly production

ago

or

comparable because capacity

the rate

ago

as

The operating rate is not

lower than capacity in 1955.

The

percentage figures for 1954 are based on annual capacity of 124,330,410 tons

of Jan. 1, 1954.

as

The

of

amount

electric

energy

distributed

by

the

electric

light and power industry for the week ended Saturday, March 19,
1955, was estimated at 9,814,000,000 kwh., according to the Edison
Electric Institute.
This
the

week's

were

and unsettled the past week but

nervous

rallied toward the end of the period to close with sizable net
gains
the first time in many weeks.
The upturn followed heavy

88,000,000 kwh.

above

that

of

previous week, when the actual output stood at 9,726,000,000

future

deliveries of

lows for the

freight for the week ended Mar. 12, 1955,
1.1% above the preceding week, according

revenue

increased 7,573 cars, or

to the Association of American Railroads.

oats, wheat and soybeans to

corn,

new

4.8% below the

corre¬

S. Automotive

industry for the latest week ended March 18,
1955, according to "Ward's Automotive Reports" assembled an
estimated 176,553 cars, compared with 171,346 (revised) in the
The past week's production total of cars and
previous week.
trucks amounted to 201,339 units, an increase above the preced¬
ing week's output of 7,864 units, states "Ward's."
Last week's
car output exceeded that of the previous week
by 5,207 cars. In
the corresponding week last year 122,097 cars and 22,601 trucks
Last week,

in the United

the agency reported there

States.

24,786 trucks made
This compared with 22,129 in the previous
were

week and 22,601 a year ago.

placed at 10,104 cars and 1,080
plants built 9,707 cars
and 1,103 trucks, and for the comparable 1954 week
8,198 cars
and 1,999 trucks.
In

the

was

previous week

ter

wheat

Coffee
while

was

futures

irregular

tended

to

with

spot prices holding

weaken

the

as

result

of

fairly

steady

favorable

crop

prospects in Brazil for the coming year.
Domestic

Supplies &
Equipment Stock Soli

The

lower

the

under

poor

demand.

in

level

lowest

sugar

more

Hog values, however, after touching
than five years, rallied to close with

moderate net gains for the week.

-Spot cotton prices finished lower after moving
during the week.

over

wide

a

range

Commercial

and

industrial

failures

declined

to

226

Depressing influences included

the

to Dun
a year

&
ago

Bradstreet, Inc.

preceding week, according
While casualties were not as high as

when 246 occurred, they remained considerably above




of

299,70(

Supplies
&
Corp. common stocl
(par 10 cents) by Franklin, Meye:
Barnett

New

of

share

per

York

has

been

City

a

oversub¬

scribed and the books closed.
reduce

fall below earlier

Reported

sales

expectations due to

of the staple

in

the

14

increased

markets

90,800 bales from 151,800 the week previous and
for

ex¬

com¬

March

on

4

were

were

dropped

usee

were

Loans outstanding on 1954 crop cotton
1,839,600 bales and on 1953 crop cotton—4,956,600

bales.

Trade

Volume Rises Sharply the

Excellent

shopping

Past Week

York

New

Suburban branches reported relatively

was

esti¬

by the following percentages: New England 0 to +4; East +2 to
+ 6; Pacific Coast +3 to +7; South +4 to +8; Midwest +5 to +9;
Northwest +6 to + 10 and Southwest -f-7 to +11.
Automobile sales increased in all regions except New England
total buying was well above a year ago.
Gasoline purchases

last week

spurt in

the

sales

household

of

goods

occurred

heavy appliances, some furniture items, floor cover¬
ings, television sets, curtains and draperies sold well. Early pur¬
as

of air

the country.

conditioners

were

reported in the

warmer

parts of

Continuing the trend of the past month, there

lightweight apparel.

and children's

wear

In

were

aggressive

promotions

spurred

Women's

coats, suits, millinery,
particularly good sellers. ;

spite of the fact that this^ time of

men's clothing, furnishings and some

on

a

largest manu¬
Army tents and ten

liners and also manufactures aeri¬
al

containers,

aviator kits,

bandoleers,

khaki

leggings,

miscellaneous items. The companj
further manufactures other can¬

duck, webbing and
nylor
products for industrial and agri¬
vas,

cultural use. It presently
has i
backlog of unfilled orders in ex¬

of

cess

$630,000.

Its

Amer.

lo¬

Stock Offered at $1
An

year

of

issue

American

Beauty

Homes,

oi

Inc.

i

being publicly offered as a specu
lation at $1 per share by Hunte

proceeds

be

use

development, con
struction and erection of partial!

homes

prefabricated
sales

sary

and

development

neces

and

ad

vertising.

•

American

Beauty

Homes,

Inc

incorporated in Delaware

Dec.

Its principal

1954.

15,

office

is

located

in

o

busi

Houston

Texas.
The company intends to engage
in the prefabrication and
homes

of

for

erection

assembly!
locaf

at

sites.

-

The

homes

will

be

modern

American
be

one

or

architecture. They wil
story structures withou
cellar, of wood frame con

struction

roofs.

with

and

The

homes

proximately
$4,285.

compositio

will

$3,450,

cost

ap,

and

$3,900

George F. Williams is engagin
in

securities

a

business

from

of

fices at 121 East 89th Street, Ne
York City.

par¬

+

taken from

With Edward D. Jones
(Special to The Financial Chronicle)

ST.

LOUIS,

Mo.

March 12,

and Midwest Stock

recorded.

will

the

G. F. Williams Opens

is usually poor for

as

net

finance

to

Jones

was

oi

299,900 shares
(par 10 cents)

stock

common

were

dresses

Spring suits sold well,

country wide basis

increase of 8%

plant is

Beauty Homes

1955, advanced 11% from the like period last year.
ing week March 5, 1955, a rise of 15% was registered from that
of the similar period of 1954, while for the four weeks ended
an

can¬

side panels, trousei
ponchos, and
othei

covers,

suspenders,

interest

12,
In the preced¬

1955,

para¬

chutist equipment, cartridge belts
first aid pouches, combat packs

much heavier sales of phonograph records than a year ago.

Spring weather and

Sept. 9, 1944

on

It is now one of the

attic

rose.

seasonal

organized ir

was

State

facturers of

was

larger gains than did

by Dun & Bradstreet, Inc., to be 5% to 9% above a year
Regional estimates varied from the corresponding 1954 levels

A

City,

New York

The

the dollar volume of retail sales in the period ended on
Wednesday of last week sharply above the level of the preceding
week.
Early Easter promotions and increasingly heavy auto¬
mobile buying accounted for heavier sales than last year at this

similarly

Supplies & Equipmen
with executive offices ir

Texas, and Lepow Co., New York

lifted

and

the

additiona

Securities Corp., New York; Con
tinental Securities Corp., Houston

Saturday in most parts of the country

on

purchase

of

Concord

to

cotton at 14,400 bales.

March 4

to

company,

the smallest

this season. CCC loan entries in the week ended
reported at 9,100 bales, and loan repayments on

week

any

indebtedness

legislative uncertainties, lag¬

the Federal Reserve Board's index for the week ended March
in

offering

Concord

of

cated at Russellville, Ala.

ging demand for spot cotton and textiles, and indications that

Department store sales

week ended March 17 from 257 in the

public

Equipment

teen

prices displayed further weakness with
refiners showing little interest in offerings at the lower levels.
The world sugar market, however, developed a stronger tone in
the heaviest trading in some months.
Lard prices again worked
raw

ticularly in the South and Southwest.

Moderately Lower

1

Corp.,

Dominion

Business Failures Turn

Jan.

grain.

in

Canadian output last week

trucks.

period

12, 1955 the inde)

inventory and for working capital

chases

assembled.

increase of 2%

an

the

March

nations and reports from Washington denying that the
Commodity Credit Corporation proposed to unload wheat as feed

ago.

The automobile

were

to

ness

Capacity in Latest Week

Marcl

aggressor

The total dollar volume of retail trade in the week

37% Ahead of 1954 Pace

City fo

ended

For the four weeks ending

1955,

mated

U.

New York

The net proceeds are to be

downtown stores.

cars or

Re

departmen

to

1954

decrease of 33,635
sponding week in 1953.

Federal

period

For

1955

time.

a

th

snow

The upturn was sparked by a statement made by the Secretary
of State that the United States should adopt a firm policy toward

Loadings for the week ended March 12, 1955, totaled 666,548
cars, an increase of 56,611 cars, or 9.3% above the corresponding
week, but

in

occurred.

season.

A^bove Prior Week and Year Ago
Show Gain of 1.1% Above Preceding Week

the
index

March 12,

$1

1953.

Loadings of

orded.

&

kwh., and increased 1,242,000,000 kwh., or 14.5% above the com¬
parable 1954 week and 1,736,000,000 kwh. over the like week in

Car Loadings

and

preceding week, March 5, 1955, ai
increase of 3% (revised) was rec

selling and liquidation in the early part of the week which sent

1954

output advanced

cancelled out b

1955, rose 3% above that o
the like period of last year. In th

petition from foreign growth.

Modest Gain in Latest Week

a!

12,

for

ports will

Electric Output Makes

sales

weekly

shares

year ago.

Grain markets

the

that

cor

ago

Concord

Slightly Higher

ago.

now

to

Board's

store

reaching the lowest level in seven months last week,
the daily wholesale commodity price index, compiled by Dun &
Bradstreet, Inc., turned slightly higher to close at 274.56 on March
15. This compared with 273.33 a week previous and with 278.52 at

May and June shipment in lieu of cold-rolled where feasible.

deliveries

Some

was

According
serve

After

Chicago Board of Trade last week totaled 55,200,000 bushels. This
was about equal to last week and
compared with 62,100,000 a year

period.

year

Wholesale Commodity Price Index Closed the

the

that

for

Ne^

advanced 1% from that of 1954.

Certain makers are virtually sold out for the com¬
ing three months and suggest use of hot-rolled pickled sheets for

handle

a

temperatures

the
or

third quarter.

being pressed for more second quarter tonnage than they can

period

cur¬

were

were

for

favorable shopping weather earl

drop, the Dun & Bradstreet whole¬

sale food price index for March 15 fell to $6.53 from $6.55 a week

coffee,

volume

little if any change from the

responding

cool

Drought conditions continued in the western part of the Win¬
belt with high winds reported in the old Dust Bowl
area.
Daily average sales of grain and soybean futures on the

are

trade

York City the past week reflecte

latter part.

Since Mid-November 1953

most

substantial market prop.

a

a

1954.

Retail

in the week

now,

in

of

excess

1, 1955 to March 12, 1955,
was registered abov

that of

A slight

tool^ place among small casualties, those involving
$5,000, which were off to 36 from 40 but con¬

tinued above the 31 of

it states, extended deliveries have largely pre¬
sheets and strip, notably cold-rolled and galvanized.

to

corresponding week of 1954.

under

liabilities in

latter still

the

on

liabilities

for finished steel is spreading rapidly be¬

Consumer pressure

also

decline of 10.2%.

yond

demand

decline

in

permits

Building

217 last week and 212 in the

Jan.

Thursday, March 24, 195

gain of 7%

Failures with liabilities of $5,000 or more dipped to 190 from

The State of Trade and

...

For the period

Holke

is

now

—

with

G.

Elmo

Edward

&

D

Co., 300 North Four
Street, members of the New Yor

Exchanges.

Volume

Number

181

5414

.

.

The Commercial and Financial Chronicle

.

(1427)

The

Indications of Current

following statistical tabulations

latest week

or

month available.

Business Activity

or

month ended

Latest

AMERICAN

IRON

Indicated

steel

STEEL

AND

operations

Equivalent to—
Steel ingots and castings
AMERICAN
Crude
42

PETROLEUM

oil

and

Mar. 27

✓

(net tons)

Month

Ago

on

90.8

(bbls.

average

§2,240,000

*2,273,000

2,191,000

6,806,200

6,719,350

6,458,300

7,462,000

7,384,000

6,883,000

24,553,000

25,208,000

22,832,000

117,476,000

Mar. 11

24,o01,000

output

2,579,000

2,434,000

2,608.000

12,443,000

12,784,000

12,561,000

(bbls.)
Mar. 11
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at*
fttar. 11

8,532,000

8,263,000

8,663,000

oil output

Kerosene

(bbls.)

Distillate

fuel

Residual

fuel

ASSOCIATION
Revenue

(bbls.)

OF

AMERICAN

Dollar

183,424,000

exchange

foreign
Total.

of

174,203,000
21,438,000

18,625,000

65,932,000

76,158,000

64„895,000

Mar. 11

45,113,000

44,298,000

46,689,000

45,973,000

666,548

To

658,975

North

643,859

609,937

of cars)__Mar. 12

648,838

To

South

648,870

621,788

595,632

To

Europe

CONSTRUCTION

ENGINEERING

To

Asia

COAL

(no.

**

ENGINEERING

—

-ZZZZZZZZ
,___ZZZ
Z ZZZ
—___-______Z

and

shipped

U.

S.

Private

Public

construction

S.

of

____

(BUREAU

of

OF

State

$374,831,000

$358,229,000

$193,862,000

$215,384,000

220,816,000

238,691,000

130,168,000

115.621,000

Mar. 17

154,015,000

119,538,000

63,694,000

99,763,000

-----Ma*. 17

94,652,000

91,549,000

42,901,000

92,216,000

mated

59,363,000

27,989,000

20,793,000

7,547.000

Mar. 12

municipals

,310,000

*7,780,000

8,690,000

7,105,000

—

—

.

Federal
COAL OUTPUT
Bituminous

(U.

coal

S.

BUREAU

and

lignite

Pennsylvania anthracite
DEPARTMENT

STORE

EDISON

ELECTRIC

Electric

Mar. 12

INDEX—FEDERAL

Central

442,000

399,000

102

654,000

98

92

(net

.Mtah
INDUSTRIAL)

BRADSTREET, INC

■

DUN

19

9,726,000

9,912,000

steel

•

(per lb.)

PRICES

(E.

J.

92

8,572,000

Export

226

257

205

to

Month
15

4.797c

_^_

4.797c

4.797c

4.634c

$56.59

$56.59

$56.59

$56.59

Mar. 15

$37.50

$37.58

$36.33

$23.33

QUOTATIONS):

All

Straits
Lead

tin

(New

(New York)

Lead

(St.

Zinc

MOODY'S

j

32.700c

32.700c

38.580c

35.700c

91.125c

91.250c

90.000c

32.700c

PRICES

IG

15.000c

15.000c

15.000c

14.800c

14.800c

12.800c

11.500c

11.500c

11.500c

9.750c

of

Housing

Public

Gas

MOODY'S

BOND

3,002

1,721

114.3

115.2

100.06
110.88

112.93

116.02

110.70

110.52

110.88

113.12

109.60

109.60

109.97

110.15

Footwear
Other

22

104.31

104.31

104.48

102.4

107.44

107.80

109.24

109.97

109.97

110.15

110.70

tyfbr. 22

110.52

110.34

110.70

112.56

Women's

2.68

2.66

2.75

3.21

3.21

3.20

2.85

118.8

_

_

_

_

1

_

_

_

107.2

117.7

117.2

104.3

104.9

106.5

107.4

99.0

99.8

116.7

girls'

105.4

97.6

__

125.7

105.5

_

107.1

125.5

116.9

116.2

91.1

90.4

127.6

127.8

113.7

106.6

108.7

119.9

120.3

131

125

135

131

126

*$24,426

$26,526

19.294

*19.322

19.856

$43,645

*$43,748

$46,382

24.857

*24.803

23.902

$290.7

*$291.4

$284.9

199.0

*197.8

194.7

85.1

*84.4

84.5

53.4

*53.1

51.9

26.3

*26.1

24.8

34.2

__

113.6

133

_

123.7

105.9

_

_

130.5

119.9

_

127.3

113.7

_

126.3

$24,351

_

.........

34.2

33.5

__

_

....

3.12

3.01

.

129.4

117.7

_

■

and recreation
Other goods and services

2.42

Mhr. 22

119.7

109.1

103.3

_

Reading
Mar. 22

113.5

126.1

.

_

j Medical care

AVERAGES:

U. S. Government Bonds

Average

112.0

90.5

and

care

109.7
110.8

129.5

apparel

Personal

110.2

106.8

104.6

...

_

boys'

Transportation

102.2

108.4

109.4

_

___

operation

and

113.1

106.4

_

_

Men's

121.2

111.3

fuel oil..

Apparel

104.48

107.62

Household

112.6

123.3

119.6

Housefurnisnings

96.55
109.42

110.4

109.2

110.6

_________

_

97.79

M«y\ 22

YIELD DAILY

2,165

1,720

123.4

...

electricity.

112.56

Group

2,420
3,518

1,635

4,346

110.6

______

and

103.24

Group

6,888

114.3

home

at

Solid fuels and

MStr. 22

Utilities

7,658

5,697
(-

109.4

_

vegetables

.....

.

Rent

97.55

Mir.

4,787

J !U7-49=I00—

___

foods

112.75

-

Industrials

INDEX

home

and

109.24

Group

1,616

1,723

..

Mar. 22

Railroad

10,158

5,008

3,225
'

21,836

10,396

2,295

:___

$28,724

22,467

7,248
___.

$30,125

22,436

4,794

loans

_

at

Mar. 22

Baa

100

7,646

January:

..

Mar. 22

Aa

3,916

3,574

loans—

■

PRICE

_M,ar. 22

-

54,830

10,459

*

credit

Other

13.000c:

14.800c

corporate

Aaa

147,007

5,609

modernization

Fruits

,y&

U. S. Government Bonds

Average

158,669

303,613

85" 611

$29,684

_Z

bakery products
Meats, poultry and fish
Dairy products

29.225c

.Mar. 16

DAILY AVERAGES:

358,543

251,503

RE¬

.____

loans

payment

Food

29.675c

36.100c

.Mir. 16
at—

$544,601,000

credit

■_____

and

items

92.500c

jlSfe

.

at

Louis)

BOND

at

at

Louis)

(East St.

term

.

.Mar. 16

.M«r. ig

York)

41,453,000

$869,227,000

SERIES—Esti¬

Cereals and

'

89,908,000

31:

_

Food

-m

at

44,037,000

93,129,000

to

.Mar. 15
■

refinery at

refinery

FEDERAL

credits

Charge accounts

Electrolytic copper—
Domestic

of Jan.

as

Personal

CONSUMER

.Mr.

—

__

M.

&

THE

intermediate

Other consumer goods.

PRICES:

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

OF

and

consumer

Service

Mar. 17

16,572,000

OUTSTANDING—BOARD

Au t o mob il e

488,000

,

Finished

short

in millions

&

:

COMPOSITE

CREDIT

SYSTEM—REVISED

Single
,814,000

60,471,000

41,464,000

10,817

Noninstalment credit

AND

292,542,000

(net

GOVERNORS

Repair
Mar. 12

10,234,000

272,588.000

anthracite

America

tons).
tons)__________
(net tons)_____
;

America

Instalment credit

RESERVE

100

=

kwh.)

000

(COMMERCIAL

IRON AGE

t

INSTITUTE:

(in

output

FAILURES

OF

Total

:

AVERAGE

CONSUMER

MINES):

(tons)

SALES

SYSTEM—1947-49

OF

(tons)

150,585,000

10,315,000

348,417

and

(net tons)—

SERVE

Mar. 17

and

.

$237,821,000

187,182,000

MINES)—

Pennsylvania

(net tons).

Mar. 17
___.

$272,708,000

178,487,000
10,495,000

December:

exports

Mar. 17

construction

construction

$235,002,000

between

NEWS-RECORD:
Total

Ago

$831,165,000

stored

EXPORTS

Month
U.
.

freight received from connections

Year

Month

177,783.000

^

cars)

:____

1

_________

182,343,000
18,373,000

Previous

BANK

countries

18,427,000

RAILROADS:

of that date:

Feb. 28:

;.

goods

on

63,832,000

.1

(number

of
__

Mar. 12

at

are as

OUT¬

RESERVE

shipments

M&r. 11

at

freight loaded

Revenue

CIVIL

(bbls.)

oil

YORK—As

Mar. 11

at

oil

ACCEPTANCES

FEDERAL

—

Domestic warehouse credits

8,362,000

(bbls.)

output

NEW

Domestic

10,000,003

fuel

DOLLAR

Exports

2,649,000

Mar. 11

oil

fuel

Residual

,

OF

Based

_Mar. 11

Distillate

/

of quotations,

cases

Month

BANKERS'

1,624,000

6,845,300

of Mar. 11

(bbls.)

average

either for the

are

Latest

68.1

STANDING

Mar. 11

stills—daily
(bbls.)
Kerosene output (bbls.)

in

or,

Imports

output—dally

Crude runs to

thai date,

Ago

*94.2

INSTITUTE:

condensate

Dates shown in first column

Year

Week

§92.8

Mar. 27

gallons each)

Gasoline

Previous

Week

INSTITUTE:

(percent of capacity)

production and other figures for the

cover

'

week

63

corporate

3.02

3.03

22

3.13

3.14

3.12

22

3.19

3.19

3.17

3.16

Mrtr. 22

3.49

3.49

3.48

3.48

Aaa _zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz M#r.
A

Mar.

Baa
Railroad

Public

Industrials

NATIONAL

3.31

3.29

3.17

3.16

3.14

3.15

3.13

3.03

Mar. 22

399.8

395.0

404.0

432.4

Mar. 12

254,012

406,459

246,171

253,105

M'^r. 12

269,618

INDEX

PAPERBOARD

Production

(tons)

of

(tons)

of period

at end

AVERAGE

266,804

261,128

(DEPT.

96

95

91

504,708

523,368

433,801

_

OF

COMMERCE)

of January

Durables

243,388

95

Mir. 12

_

NEW

SERIES—

(millions of dollars):

410,285

.

_

_

Nondurables

_

Total

100

=

RESERVE

Inventories-

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

FEDERAL

_

_

MANUFACTURERS' INVENTORIES AND SALES
Month

__Mar. 12

activity

Unfilled orders

THE

Unadjusted

Z

ASSOCIATION:

(tons)

Percentage

OF

3.13

Mar. 22

ERNORS

GOV¬

SYSTEM—1947-49=100—Month of Feb.:

Seasonally adjusted

3.21

3.17

Group

received

Orders

3.30

M§r. 22

Group

COMMODITY

MOODY'S

INDUSTRIAL PRODUCTION—BOARD OF

3.00

—Mpr. 22

Group

Utilities

__

_

Mar. 18

107.33

107.45

107.27

_

_

__

____

_

_

Sales

__

107.92

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDDEALERS

LOT

EXCHANGE

—

AND

SPECIALISTS

SECURITIES

ON

7.

N.

EXCHANGE

PERSONAL

STOCK

Dollar value

5

1,493,102

1,214,148

1,700,303

5

$76,928,678

$59,853,652

$86,644,582

personal income.
Wage and salary, receipts,

988,111

Mar.

$46,695,026

Mar.

5

1,338,805

1,055,167

1,432,752

short

sales

-Mar.

5

4,690

5,289

7,916

other

sales

Mar.

5

1,334,115

1,049,878

1,424,836

Mar.

5

$63,267,057

$49,958,364

$67,746,797

$42,748,729

Mai.

5

331,290

259,590

367,340

299,090

Mar.

5

—Mar.

5

331,290

259,590

3~67"340

29~9~090

Mar.

5

513,700

436,680

616,068

Service

983,014

301,460

value

sales by

Short sales

—

sales

Other

—.

Round-lot purchases

—

.

TOTAL

STOCK SALES

ROUND-LOT

EXCHANGE

OF

ON

MEMBERS

Total Round-lot sales—

.

THE N.

STOCK

Total

—2G

405,610

753,120

677,590

12,239,010

17,615,050

16,794,760

6,124,870

12,644,620

18,368,170

17,472,350

6,424,470

—:

Total

of specialists in

ACCOUNT

OF

Feb. 26

1,922,740

2,130,770

691,160

Fruit

417,030

346,860

135,140

Truck

1,540,190

1,905,020

481,080

2,251,880

616,220

Feb. 26

sales

12,900

251,090

384,800

595,570

161,290

461,253

647,580

690,535

232,902

52,110

114,430

101,130

31,450

664,625

932,066

764.465

1,046,496

865,595

1,955,593

2,864.820

3,368,845

1,114,842

318,500

560,560

486,290

179.490

—

U.

S.

DEPT.

Farm

foods

3,226,755

863,651

3,388,516

3,713,045

1,043,141

OF

:

.

110.0

♦110.1

110.3

as

Ulncludes 672,000 barrels of foreign

against Jan.

1,


http://fraser.stlouisfed.org/
I
Federal Reserve Bank of St. Louis

222

210
233

208

269

240

277

264

263

315

253

258

267

190

163

208

$77,205,500

$22,993,400

$231,000,000

$231,000,000

$275,000,000

278,131,954

278,439,067

274,781,539

26,948

23,806

77,011

$273,208,902

$278,462,873

$274,858,550

511,967

514,078

558,701

$277,696,935

$277,948,794

$274,299,848

3,303,064

3,051,205

700,151

—

_

____

_

_

animals

__

OF

eggs

_______

MARKET
AND

U.

.._

_

GUARANTEED

—

__

of

_

...

TRANSACTIONS

A.—Month

S.

Net sales

_

IN

__

DI¬

SECURITIES

February:

-

$4,008,550

_____

Net

S.

purchases
GOVT.

-

STATUTORY

—As of Feb.

Total
at

face
any

92.4

*92.6

93.4

98.8

Mar. 15

101.8

28

time..

DEBT

LIMITATION

(000's omitted):

amount
__

that
__

be

may
_

outstanding

_

Outstandingpublic debt

gross

obligations

_

not

__

owned

_

by

_

the

__

110.6

Mar. 15

♦102.0

103.2

80.5

81.3

85.4

92.0

Mar. 15

115.5

*115.5

115.4

114.3

crude

runs.

§3ased

on

new

1954 basis of 124,330,410 tons.
since introduction of Monthly Investment Plan.

annual capacity

Total

104.7

Mar. 15

1955,

443
258

210

_

_

275

263

Total

Mar. 15

tNumber of orders not reported

_

425

274

Treasury

commodities other than farm and foods

•Revised figure.

_

204

268

...

236

258

Guaranteed

Meats

1,

2,827,956

2,272,885

100):

products

Processed

1,954,385

Feb. 26

SERIES

__

237

241

436

_

258

248

203
..

244

244

TREASURY

U.

Feb. 26

NEW

245

240

265,631

Feb. 26
.

=

15:

_

crops

Poultry

234,181

716,735

——Feb. 26

—

PRICES,

INDEX

—

148,390

-Feb. 26

(1947-49

14.8

267.9

AGRICUL¬

__

Dairy products

190,780

38,300

557,270

.Feb. 26

sales

—

16.7

♦276.5

270

RECT

Commodity Group—
All
commodities

Jan.

547,540

29,100

355,700

.Feb. 26

Total sales

of

294,500

12,700
238,390

.Feb. 26

Total purchases

All

181,660

Feb. 26

Feb. 26

round-lot transactions for account of members—

LABOR

16.6

Meat

1,957,220

Feb. 26

WHOLESALE

23.9

275.5

_

OF

6.6

26.2

crops
Livestock and products

transactions initiated off the floor—

Other

4.7

49.6

24.7

dividends

__

Oil-bearing

sales

Short sales

4.7
6.6

*48.8

245

—

—

__

5.1

43.9

_

_

___

253,690

Total sales

v./

and

FARMERS

,

1,051,370

purchases

Other

_

_

grain and hay

Cotton

1,312,680

in¬
.

6.6

income..

DEPT.

_

1,305,060

Total purchases
Short sales

Total

._

_

_

Feb. 26

Total sales

Other

S.

grain

—Feb. 26

—

i
.

Short sales

Other

BY

U.

—

Tobacco

Other transactions initiated on the floor—
Total

RECEIVED

Feed

Feb. 26

sales

sales

social

income

Food

stocks in which registered-

purchases

Other

for

........

transfer payments

Crops

MEM¬

Short sales

Total

__

..

income

Unadjusted—
xa,xm products.

299,600

—Feb. 26

—

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions

_

„

interest

NUMBER

..-

FOR

..

income

nonagricultural

PRICES

_

______

_

TURE—1910-11=100—As of Feb.

sales

TRANSACTIONS

...

contributions
—

..

labor

Personal

(SHARES):

Total sales

ROUND-LOT

_

Proprietors and rental

Total

Feb. 26

Short sales

Other

Y.

_

employee
surance

Other

STOCK TRANSACTIONS

ROUND-LOT

AND

ACCOUNT

FOR

Less

by dealers—

Number of shares

.

_

industries

Government

dealers—

Number of shares—Total sales

___

total.....

producing industries
Distributing industries

7,347

Customers'
Dollar

STATES

Commodity

990,361

Customers'

Round-lot

UNITED

OF COMMERCE)—Month
January (in billions):

of

—

THE

Total

Mar.

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

IN

(DEPARTMENT

COMMISSION:

Odd-lot salei by dealerg (customer!' purchases) t—
Number of shares

INCOME

of 125,828,310 tons as

teed

gross

public

obligations

debt

and

guaran¬

_

Deduct—other

outstanding public debt obli¬
gations not subject to debt limitation

Grand total outstanding.
Balance face amount of obligations,
under

above

authority

issuable

The Commercial and Financial Chronicle

...

(1428)

6i

Thursday, March 24, 1955

★ INDICATES

Securities Now in Registration
Mines, Inc., Salt Lake City, Utah
notification) 299,700 shares of common
stock (par one cent). Price — $1 per share. Proceeds—
For mining expenses. Office—701 Newhouse Bldg., Salt

Best American Life

Allied Uranium

Feb

17 (letter of

Underwriter—H. J. Cooney & Co., New
Full registration statement
covering 600,000 shares in process of filing.
Utah.

Fake City,

withdrawn.

Letter

York.

Amcrete Corp.,

Briarclift, N. Y.'

7,500 shares of o% par¬
ticipating preferred stock.
Price — At par ($10 per
share). Proceeds—For working capital. Business—Dis¬
tributor of prefabricated concrete wall panels and but)r3sses made of steel reinforced dense concrete, etc.
Un¬
(letter of notification)

6

Dec.

derwriter—None.

Co., Ltd.

Asbestos

American

stock

(Regulation "D") 600,000 shares of common

Feb. 17

(par $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.
Feb. 25 filed 460,000

jprice—$l

per

share.

shares of common stock (par 10£).

Proceeds—For exploration and de¬

velopment of mining properties of subsidiary and for
working capital, etc. Office—Dover, Del. Underwriter—
Vickers Bros., New York. Offering—Expected in about

Phillips Building, same city.

$25,000,000 sinking fund debentures due

1980. Price—To be supplied by amendment
Proceeds—Together with other funds, to redeem $18,15,

700,000 of 7% cumulative preferred stock (par

$100) at

$115 per share and prepay $10,000,000 loan from Metro¬
politan Life Insurance Co. Underwriter—Smith, Barney
& Co., New York.
Uranium

Arctic

Oct.

28

(Regulation

Ltd.

Mines

1,500,000 shares of common

"D")

utock (no par value). Price—20 cents per share.

Proceeds

general corporate purposes. Office — 411 Childa
Bldg., Winnipeg, Manitoba, Canada. Underwriter-De
•Gaetano Securities Corp., New York.
—For

Arkansas-Missouri

Power

Co.

stock (par $5) to
of

be offered for subscription by common stockholders

record March 14 at the rate of one new share for each

12*4

(with an oversubscription privilege).
supplied by amendment.. Proceeds—To
bank loans and for construction program. Under¬

shares held

repay

writer—None.
*'

Arkansas Power &
March

3

filed

Light Co.

tive

Underwriter

bidding.

—

Probable

(3/30)

of first mortgage bonds due

$18,000,000

1985. Proceeds—To redeem
due 1983.

Underwriter—I. J. Schenin Co., New York.

Bingham-Herbrand Corp., Fremont, Ohio
2 (letter of notification) 3,000 shares of common
stock (par $1). Price—At the market (estimated at $10
per share).
Proceeds—To selling stockholder. Under¬
writer—Wm. J. Mericka & Co., Inc., Cleveland, Ohio.
Feb.

Bishop Oil Co., San Francisco,

a

like amount of

bonds

To be determined by competi¬

bidders:

Calif.

(par $2)
being offered for subscription by stockholders of record
March 14, 1955, on the basis of two new shares for each
153,236 shares of common stock

expire on March 30. Price—
Proceeds—To retire bank loan and to ad¬
vance funds to Canadian Bishop Oil, Ltd., wholly-owned
subsidiary. Underwriter—Hooker & Fay, San Fiancisco,
$8 per share.

Calif.
Blue

Canyon Uranium, Inc.

Lake City, Utah, and 618 Rood

Underwriter

Ave., Grand Junction, Colo.
Reed Co., Reno,

Halsey, Stuart & Co.

Blue

—

James E

Nev.

Jay Uranium Corp., Elko, Nev.

Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Beane; Equitable Securities Corp. and Union Securities

ploration and development costs. Office—402 Henderson
Bank Bldg., Elko, Nev. Underwriter—Security Uranium
Service, Inc., Moab and Provo, Utah.

at Two Rector
Arkansas

it Brown Co., Berlin, N. H.
17 filed $14,217,100 of debentures due May 15,

St., New York, N. Y.

Power

March

&

Light Co. (3/30)
cumulative preferred stock
(par $100) to be offered in exchange for outstanding
47,609 shares of $7 preferred stock and 45,891 shares of
$6 preferred stock on a share-for-share basis during a
period from about April 1 to April 19. Price—To be
•named later (expected to be $105 per share). Proceeds—
Together with other funds, to redeem 47,609 shares of $7
preferred stock and 45,891 shares of $6 preferred stock.
{Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Smith, Barney
& Co. (jointly); Lehman Brothers; White, Weld & Co.;
Equitable Securities Corp. and Union Securities Corp.
(jointly). Bids—To be received up to 11 a.m. (EST)
cm March 30 at Two Rector St., New York, N. Y.

March 3 filed 93,500 shares of

Automatic Remote Systems, Inc.
3 filed 540,000 shares of common

March

cents). Price—$3.75

per

share.

(par 50

Proceeds—For manufac¬

of Teleac

ture

Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬

Md.

more,

city.

1975, and 142,171 shares of common stock (par $1) to be

holders of "called" $5 cumu¬
stock who have not
surrendered their shares for redemption or conversion
into common stock.
These holders may subscribe for

offered for subscription by

convertible

lative

first preference

$100 of debentures and one share of common stock for
each $5

preference share held. Price — $100 per unit.
redemption of $5 preference stock. Un¬

Proceeds—For

derwriter—None.
•

Underwriter—Mitchell Securities, Inc.,

same

,

>V Beauty Counselers, Inc., Grosse Point, Mich.
March 9 (letter of notification) 10,000 shares of common
fttock

activities. Office — 824 Equitable Bldg:,
Underwriter—John L. Donahue, 430 16tb
St., Denver, Colo.
Denver 2, Colo.

it Composite Bond & Stock Fund, Inc.,
Spokane, Wash.
March 18 filed (by amendment) 50,000 shares of capital
stock (par $1). Price—At market. Proceeds—For invest¬
^Confidential Finance Corp., Omaha, Neb (3/28)
March 11
(letter of notification) 150,000 shares of 7%
cumulative
shares of

ible preferred
amendment.

42

Proceeds

San Francisco,

10

—

To

repay

Underwriter

shares

stock.

(4/4-7)
cumulative convert¬

—

bank
First

loans and for
California Co.,

Calif.
Inc.

(amendment) $500,000 of 6% sinking fund
debentures due 1967 and 50,000 shares of common stock

Proceeds

&

No

Jan. 24 filed
to

be offered

Office—
San Diego, Calif. Underwriter—Barrett Herrick & Co.,
Inc., New York. Offering—May be effected in March.

Proceeds—For expansion and working capital.

Carnotite

Development Corp.

Oct. 26 (letter of notification) 16,000,000 shares of com¬
stock. Price—At par (one cent per share). Proceedi

exploration and development expenses. Office—
Grand Junction, Colo. Underwriter—West¬
Securities Corp., Salt Lake City, Utah.

Central Maine

(EST)




date

new

set.

of record

204,586 shares of common stock (par $7),
for subscription by common stockholders

Feb. 7,

1955 at the rate of one new share for
Price—$2.20 per share. Proceeds
—From sale of this stock, plus $440,000 to be available
each five shares held.

sale

of

200,000 shares to Alator Corp. Ltd. and
Ltd., and $175,000 treasury funds, to be
geological surveys and metallurgical re¬
search, for drilling expenses and other general corporate
Yam

Securities

used to pay for

Office—Toronto, Canada. Underwriter—None,

purposes.

Consolidated

Sudbury
Toronto, Canada

Basin

Ltd.,

Mines,

Jan. 31 filed 3,000,000 shares of common stock (no par),
Price—To be supplied by amendment.
Proceeds—For

exploration and development of properties. Underwriter
—Stock

to

be

sold

through underwriters

Toronto

on

selected

or

Stock

Exchange

dealers

in

oi

United

States.

it Consumers Public Service Co., Brookfieid, Mo.
notification) 1,200 shares of 6% cumu¬
lative prefererd stock.
Price—At par ($50 per share).

March 7 (letter of

—

To repay

improvements.

bank loans and for additions and

Underwriter

McDonald, Evans & Co.*

—

Kansas City, Mo.

Contact Uranium,
Dec.

7

mon

Mines, Inc., N. Y.

stock

(letter

of notification)

500,000 shares of com¬
(par one cent). Price—10 cents per share,
Proceeds—For mining expenses. Office—100 West 42nd
St., New York. Underwriter—Justin Steppler, Inc., New

Jan.

Power Co.

(4/12)

first and general mortgage
bonds, series V, due 1985.' Proceeds—To repay bank loans
and for construction program. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp. and Coffin
& Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.;
Blyth & Co., Inc., Kidder, Peabody & Co. and W. E.
Hutton & Co. (jointly); Salomon Bros. & Hutzler; Kuhn,
Loeb & Co.; Union Securities Corp. and A. C. Allyn
& Co. Inc. (jointly). Bids—To be received up to 11 a.m.

offices

Wheat

Consolidated Fenimore Iron Mines Ltd.

(par $1) to be offered in units of a $1,000 debenture and
Price—Expected at $1,100 per unit.

100 shares of stock.

•

all

West

—

York.

March 16 filed $12,000,000 of

to

Underwriter—J. J. Riordan & Co., Inc.*

Consol. Edison Co. of New York, Inc.
April 7, 1954, filed $50,000,000 first and refunding mort¬
gage bonds, series K, due May 1, 1984. Proceeds—To be
applied towards cost of redeeming $27,982,000 New York
Steam Corp. first mortgage bonds and $25,000,000 West¬
chester Lighting Co. general mortgage bonds.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders; Halsey, Stuart & Co. Inc.; Morgan, Stanley
& Co.; The First Boston Corp. Offering—Originally set
for May 11, but has been postponed because of market

Feb. 15 filed

ern

Private Wires

ot

For

—

To repay bank loan.
Office — 221
St., Charlotte, N. C. Underwriter—J. C.
Co., Richmond, Va.

Continental Electric Equipment Co.
28

stock

(letter of notification) 8,645 shares of common
(no par) to be offered for subscription by stock¬

holders of record March 1, 1955 on the basis of one new

share for each five shares
15.

Price

capital.

$18.75

—

Office

debentures and

Cleveland

share

one

Proceeds

Trade

Dec.

San Francisco

$10 per unit.

—

a $1,000 note and one warrant.
Price—$1,000
unit (each warrant is exercisable at $10 per share.)

per

817 Main St.,

Philadelphia

preferred stock and

Price

in units of

—For

Chicago

95 cents) and 15,000
cent) to be offered in

Corp., Charlotte, N. C.
(letter of notification) $100,000 of 20-year 6%
subordinate sinking fund notes and 100 ten-year war¬
rants to purchase 20 shares of common stock to be sold

New York. No general offering expected.

Pittsburgh

one

25

mon

Boston

of

(par

(par

Consolidated Credit

Oct.

(par $1). Price—$10 per share. Proceeds—To sell¬
ing stockholders. Underwriter — Spencer Trask & Co.,

New York..

stock

stock

Broadway, New York City.

Price—To be supplied by

stock (par $20).

construction.

new

of

preferred

common

Proceeds

California-Pacific Utilities Co.

March 14 filed 50,000 shares of 5%

California Tuna Fleet,

stock

—For mining

from

Oct. 15 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—25 cents per share. Proceeds—For ex¬

& Co.; The First Boston Corp.
Bids—To be received up to 11 a.m. (EST) on March 30

Uranium Co.

Plateau

conditions.

(letter of notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share
Proceeds—For mining activities. Offices — 1003 Con¬

Inc.; Lehman Brothers and Stone & Webster Securities
Corp. (jointly); Blyth & Co., Inc. and Central Republic

(jointly); White, Weld

Colorado

Dec. 1 (letter of notification) 1,900,000 shares of common
stock (par one cent). Price—15 cents per share. Proceeds

Nov. 29

tinental Bank Bldg., Salt

C.

I., N. Y. Business—None.

working capital.

—

be

IPrice—To

Colo.

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share,
Proceeds—For exploration and development costs. Of¬
fice
705 First National Bank Bldg., Denver, Colo
15

five shares held; rights to

March 3 filed 36,868 shares of common

L.

units

filed

*

it Colonial Aircraft Corp.
18 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For equipment and working capital.
Business — To
produce the "Skimmer Amphibian." Office—Deer Park*

common

21

ISSUE

March

Ave., Provo, Utah.

•

REVISED

and development program. Office — Washington, D.
Underwriter—Peter Morgan & Co., New York.

Underwriter—Weber Investment Co., 242 N. University

Feb.

ITEMS

•

PREVIOUS

ment.

Provo, Utah
July 15 (letter of notification) 500,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For mining operations. Address—Box 77, Provo, Utah.

Bikini Uranium Corp., Denver,

11 filed

March

Mesa, Ariz.

800,000 shares of

Big Bend Uranium Co., Salt Lake City, Utah
Aug. 6 (letter of notification) 7,000,000 shares of commoi
stock. Price—At par (three cents per share). Proceed!
—For mining expenses. Office—510 Newhouse Building
Salt Lake City, Utah.
Underwriter — Call-Smoot Co.

Oct.

(3/30)

American Locomotive Co.

March

filed

permit to qualify as a full legal reserve company and
expand into other states. Underwriter—None. Richard
G. Johnson of Mesa, Ariz., is President.

five weeks.
«

11

Big Indian Uranium Corp.,

Minerals Corp.

International

American

Insurance Co.,

class A common stock
(par $1) to be offered to present and future holders ol
its life insurance policies with stock purchase rights;
75,000 shares of class B common stock (par $1) to be
offered to present and future life insurance salesmen,
district managers and state managers; and 455,208 double
option coupons with and attached to policies of whole
life insurance, to be offered to the general public. Pro¬
ceeds—To build up capital and surplus of company to
Feb.

ADDITIONS

SINCE

on

April 12 at the company's office, 443 Congress

per

1

—

Continental Loan
22

April

Place, Cincinnati, O.

Co., Dallas, Tex.
10-yeai

common stock (par 10
cents) to be offered in units of $1,000 of debentures and

200

shares of stock;

remaining 12,000 shares to be pur¬
by underwriter. Price—$1,400 per unit; and $2
share.
Proceeds—To buy common stock
of Budget and Mutual and for working capital. Office-^
chased
per

815

common

Fidelity Union Life Bldg., Dallas, Tex.

Underwriter

—Securities Management Corp., same address.

it Continental Telephone Co.

(4/7)

March 18 filed 243,060 shares of common stock (par $1)
to be offered for subscription by common stockholders
on

the basis of

one

new

share for each four shares held

about April

Gary

&

7; rights to expire about April 20. Theodore
Co., which owns 50.49% of the outstanding

the

Proceeds—For exploration

on

For working

42,000 shares of

•

Price—$1 per share.

—

(letter of notification) $150,000 of 4%

shares of Continental

cents).

Proceeds

Underwriter—None.

St., Portland, Me.

Chesapeake & Colorado Uranium Corp. (4/4)
Dec. 7 filed 750,000 shares of common stock (par five

held; rights to expire

share.

Green Hills

122,716

shares

Price—To be
used

to

common

stock, intends to purchase
entitled to subscribe.

which it is

supplied by amendment. Proceeds—To be
principally for financing the company's subsidiaries

Volume

181

Number 5414

.

.

The Commercial and Financial Chronicle

.

and for other general corporate purposes. Underwriters
-—White, Weld & Co., The First Boston Corp. and W. C.
Pitfield & Co., Inc., all of New York.

Corning Glass Works, Corning, N. Y. (3/29)
stock (par $5).

March 10 filed 464,700 shares of common
Price—To be supplied by amendment.
26

Proceeds — To
Underwriters—Lazard Freres &

selling stockholders.

Co. and Harriman Ripley & Co. Inc.,

it Crestmont Oil Co., Los Angeles, Calif.

bank

pay

loan

and

to

acquire additional not fully de¬

veloped

producing properties with good oil reserves.
Underwriter — Shearson, Hammill & Co., Los Angeles,

East Texas Loan &

(letter of notification) 25,000 shares of common
stock (no par). Price — $10 per share. Proceeds—For
working capital. Office—203 East Cotton St., Longview,
Tex.

Underwriter—D.

7

Works

4%

$2,500,000
bonds

Courts

and Public
supplied by
Romenpower Electra Con¬

Veterans,

Price—To

1983.

be

Investment

Co., same

for

for

held

(with

a

mon

stock

to be offered for account of John M.

To

—

Co., which received the bonds in payment
preformed for the Republic or one of more
of its agencies. Underwriters—To be named
by amend¬
work

stockholders -of

common

record

share for each five shares

one new

2-week standby); and 30,000 shares of

com¬

Curley,

ment.

Chairman of the Board and President. Price—To be sup¬

Desert Queen Uranium
Co.,
Jan. 26 (letter of notification)

plied by amendment.

Salt Lake City, Utah
259,500 shares of common
stock (par two cents). Price—$1
per share.
Proceeds—
for mining operations. Office—506
Judge Building, Salt
Lake City, Utah.
Underwriter — Selected Securities
Ltd., Los Vegas, Nev.

Co., Salt Lake City, Utah
(letter of notification) 2,000,000 shares of

stock Price—At par (15 cents
per share).
«—For exploration and development
expenses.
524 Atlas
Bldg., Salt Lake
mon

City, Utah.

Van Blerkom &

Co.,

com¬

Proceeds
Office—

Underwriter-

city.

same

Diamond Uranium Corp., Moab, Utah
(letter of notification) 3,500,000 shares of com¬

Jan. 20
mon

Proceeds—For retirement of bank

loans, capital expenditures and working capital. Under¬
writer—Hornblower & Weeks, New York.
ElectroData

March

7

Corp.,

Pasadena,

Calif.

(3/31)

filed

stock

(par one cent). Price—Five cents per share.
Proceeds—For mining expenses. Office—M. I. C. Bldg.,

Moab, Utah. Underwriter—Security Uranium Service,
Inc., K. O. V. O. Bldg., P. O. Box 77, Provo, Utah.

to

210,000 shares of capital stock (par $1)
be offered for subscription by stockholders at the rate

of

Desert Uranium

Oct. 18

March 3
stock

three

shares for each

new

shares held

10

31; with subscription rights to expire

March

on

April 18. Price
supplied by amendment. Proceeds — For con¬
struction of new plant and office building, new
equip¬

—To

(letter of notification) 28,143 shares of capital
being offered for subscription by stock¬

with

and working capital.
Underwriter—Blyth &
Inc., San Francisco and New York.

ment

Electronics
Jan.

6

Co.,

funds

March 28

(J. J.

(Monday)

Riordan & Co.,

300,000 shares of capital stock. Price—At
par ($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.

shares.

Electronics Corp.

(formerly Edgar L.
Scillitoe, Inc.), Brooklyn, N. Y.
16 (letter of notification) 140,000 shares of

March

stock

(Barrett Herrick & Co.,

Co

10:30

Bonds
CST)

a.m.

(par one cent).

Inc. and Franklin, Meyer & Barnett)

Eastern

Stainless

(Offering

$3,150,000

(Wednesday)

Steel

Corp

stockholders,

to

Corning Glass
(Lazard

(Tuesday)

Tennessee Gas Transmission Co

Works

Freres

&

Co.

Common

and

Harriman

Ripley

&

Co.

Pierce,

Fenner
Co.)

&

and

Common
Beane

&

and

Kidder,

Peabody

Oil

(Offering

shares

305,000

Co

(Van

Noel &

Co.)

$1,375,000

(Universal

Common

Securities

Storer

Uranium

Co.)

(Reynolds

262,750

Development

(Lentz, Newton & Co.

shares

Eula Belle Uranium,

Oct.

.Common

$298,000

Co.

&

March 30

American

(Smith,

Arkansas

&

Farm & Home Loan & Discount Co.
Nov.

filed

29

11

a.m.

Arkansas Power

&

(Bids

Induction
(C.

E.

a.m.

March

Preferred

Marlowe

Towbin

Credit Corp., New York
filed 250,000 shares of 7% cumulative sink¬
ing fund preferred stock. Price—At par ($2 per share).
Financial

Preceeds

For

—

&

Co.)

31

(The

First

Boston

by

Bonds

EST)

Common

(May

be

Union

Co.)

Stone & Webster

and

165.000

Philadelphia

(Bids

11

Corp.)

a.m.

(Peter

$1,000,000

(White,

Brothers

and

EST)

$750,000

&

Co.;

Corp.;

Kidder,
and

Inc.)

Corp

Peabody

Southern

G.

States
(Gordon

Oil

Co.

Inc.)

New

The

Dominion

Graves

11

(Bids

Co.,

Inc.)

to

Edison

be

Co

CSTi

EST)

$12,000,000

invited)

$4,080,000

(Tuesday)

EST)

(Bids

to

be

Invited)

May 24
Power




of

&

Underwriters

Beane

— Merrill
Lynch,
Kidder, Peabody & Co^

and

New York.

Florida

Telephone

Corp.

(4/1)

of record

ployees.

April 1, 1955, and by certain officers and em¬
Price—$13 per share. Proceeds—For construc¬

Office—Ocala, Fla.

program.

Fort Vancouver

Underwriter—None..

Plywood Co., Vancouver, Wash,
common

stock.

Price—At p&r

($4,500 per share). Proceeds — For down payment em
purchase price of mill facilities and for other expenses.
C.

O'Brien,

one

of the promoters.

Four States Uranium

Corp., Grand Junction, Cola.
Aug. 16 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—Fcr
exploratory and development expenses.
Office — 611®
Rood Avenue, Grand Junction, Colo.
Underwriter —
Joe Rosenthal, 1669 Broadway, Denver, Colo.
Gatineau Uranium Mines Ltd. (Canada)
Aug. 10 (Regulation "D") 300,000 shares of common stock;
Price—At par ($1 per share).
Proceeds—For explora¬
tion and development costs.
Office — 100 Adelaide St;.

^

West, Toronto, Canada. Underwriter—McCoy & Willard,,
Boston, Mass.

Co., Salt Lake City, Utah

Dec. 9 (letter of notification) 11,000,000 shares of capital
stock (par one cent). Price-^-Two cents per share. Pro¬

City, Utah.
city.

Underwriter—Utah Uranium Brokers,

same
t

Dynamics Corp.

(4/4-6)

April

1,

Price

1975.

Proceeds—For

—
To be supplied by amendment.
expansion and improvement of facilities

for

Blyth & Co., Inc., both of New York.

working

capital.

Underwriters—Lehman Bros,

General
15

Homes,

Inc.

filed 300,000
per

shares of common stock (par $3)..
share. Proceeds—For plant expansion, new-

equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
Co., New York.
Uranium Corp., Salt Lake City, Utah
(letter of notification) 1,200,000 shares of com¬
stock.
Price—At par (25 cents per share). Pro¬

General

ceeds—For

11

(Tuesday)
Bonds

a.m.

EST)

to

be

invited)

November 9

Southern

$15,000,000

Bonds

$25,000,000

(Wednesday)

Co.
(Bids

Common
to

be

invited)

500,000

shares

Of¬
Building, Salt Lake City, Utah. Under¬
Christopulos & Co., same city.

development and exploration expenses.

fice—404 Boston

$30,000,000

Co

(Bids

$5,000,000

$1,530,000

both

mon

Bonds

June 7
(Tuesday)
Virginia Electric & Power Co

Equip. Trust Ctfs.
noon

program.

Pierce, Fenner

Price—$5

Bonds
a.m.

construction

Dec.

(Tuesday)

-

(Bids

(Bids

Co.)

$500,000

Kentucky Utilities Co
10:30

&

Bonds
a.m.

May 17
Ohio

Alabama

(Tuesday)

Wabash RR.

(3/29)

Oct. 27

..Common
&

Bldg., New Orleans, La.
Light Co.

March 11 filed 305,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For

writer—P. G.

shares

Co

April 5
(Bids

Preferred & Common
Space

York, Chicago & St. Louis RR.__Eq. Tr. Ctfs.

Corp.) $17,220,000

100,000

Power &

and

(Monday)

287,000 shares of stock

&

Florida

ler &

Common

Becker

Investment Co., Delta

March 11 filed $40,000,000 of convertible debentures, due

$40,000,000

Power Corp
(A.

(Bids

Notes & Com.
Co.;

&

Union Securities

and

debentures

Co.,

&

Fertilizers

filed

General

$50,000,000

Georgia Power Co

Debentures

Blyth

Northwest Pipeline
Weld

Securities

Sealed

Co.)

Dynamics Corp

(Lehman

Pacific

&

Morgan

shares

Bonds

Lane,

May 10

Preferred

Chesapeake & Colorado Uranium Corp.._Common
General

384,861

(Monday)

2

May
(Johnson,

Co

Co.)

J.

E.

77,350 shares

(Monday)

California

—

ceeds—For exploration and development of oil and ura¬
nium properties.
Office — 414 Judge Bldg., Salt Lalrei

.

Co

Augusta Newspapers, Inc

(First

Underwriter

and

Common

Utilities

Securities

Common

Securities

Electric

$299,000

Corp

April 4

shares

(Friday)

April 25

(Friday)
&

.Common

Westpan Hydrocarbon Co

$300,000

Common

Fuller

Corp.

14

Gem Uranium & Oil

(Thursday)

14

April 15

(Offering to stockholders—no underwriting)

California-Pacific

$12,000,000

Blyth

Corp

Telephone

Co.) $700,000

Co

Corp.)

210,000 shares

April 1

Florida

shares

(Tuesday)

a.m.

April

$84,375

(Thursday)

Investing Corp.)

D.

Common
193,000

Co., Inc..Debens. & Com.

Liuaire, stout &

11

&

(Monday)

11

Maine Power
(Bids

Co

(General

(S.

Central

working caiptal.

Co., Inc., New York.

Underwriter—John

$298,740

Debentures

Savannah Electric & Power Co

Co., Inc.)

American Alloys

King,

Common

Chemical

Brothers)

.Common

stockholders—underwritten

&

&

$9,350,000

ElectroData Corp.
(Offering to

Vermilye

Webber, Jackson & Curtis)

(Eisele

stock

Jan. 29, 1954

Feb. 21 filed 397 shares of

Common
and

April
(Paine,

common

,

tion

shares

99,914

April 12

Corp

Unterberg,

and

$18,000,000

EST)

Weld

Pitfield

W. C.

Telecasting, Inc

Bonds

Light Co

11

Motors

EST)

and

White,

stockholders—underwritten by Kuhn, Loeb
Carl M. Loeb, Rhoades & Co.) $4,651,200

to

shares of class A

320,000

(par 25 cents), 214,285 shares of class B common stock
(par 35 cents) and 300,000 shares of class C commta
stock (par 50 cents). Price — At par. Proceeds — Fcr
working capital. Office—Phoenix, Ariz. Underwriter—zy

Co.;

Common

Inc.)

Co.

Inc.

18

243,060 shares

Inc.)

White River Propane Gas

$25>000,000

Light Co

(Bids

Co.

Debentures
Co.)

&

&

$3,000,000

Gross

Co

Barney

Power

Kibbe & Co.

(Wednesday)

Locomotive

&

Common
by

Pan American Sulphur Co

Common

and A..P.

Fuller

D.

m

March 4 filed 77,350 shares of common stock (par
$10)
be offered for subscription by common stockholders

Co..
Co.

early

to

Lee Spring Co., Inc

(Offering

White Canyon Mining Co._
McManus

Weld

(Thursday)

Boston Corp.;

Co.,

Offering—Expected

(letter of notification) 5,000,000 shares of com¬
mon stock (par one cent),
Price—Five cents per share.
Proceeds—For exploration and development expenses^
Office—506 First Security Bank Bldg., Salt Lake City*
Utah.
Underwriter—Utah Securities Co., same city.

$25,000,000

(Offering to stockholders—underwritten by A. G. Becker

(S.

Corp

i

&

Products
&

Common

Co.)

&

First

$300,000

Broadcasting Co

Texas

White,

stockholders—underwritten

The

Co.;

Gerber

Metallics Recovery Corp

(Joseph

to

Common

Alstyne,

Corp.;

Continental Telephone Co
&

Kin-Ark

Securities

Halsey, Stuart & Co. Inc.)

Inc.)

April 7

Florida Power & Light Co
lynch,

Webster

&

(Stone

Debentures

shares

464,700

(Merrill

.Common

shares; and. to public,
by Hornblower & Weeks)

96,755

30,000 shares—underwritten

29

York.

Inc., both of New
April.

•

April 6
Common

March

$7,500,000

Inc.) $150,000

Holly Uranium Corp

com¬

Price—$2 per share. Proceeds
and working capital. Business — Re¬
search engineering in electronic and other fields. Office
—617-33 Brooklyn Ave., Brooklyn 3, N. Y. Underwriter
—Standard Investing Corp. and Baruch Brothers & Co.,
mon

—For equipment

Corp., Houma, La.
585,000 shares of common stock (par 3.9
cents). Price—$5 per share. Proceeds—To buy equip¬
ment and for working capital.
Underwriter — TsehLna

Utilities
(Bids

mortgage

held; rights to expire cm
share. Proceeds—Together
loan of $350,000 to redeem

$581,700 outstanding income mortgage loan certificate*).
Office—141 Broadway, New York 6, N. Y. Underwritrjr
—None, but Breswick & Co., New York, will buy un¬

Feb.

CALENDAR
West Texas

per

None.

Co. of Ireland

filed

Confidential Finance Corp.-..Preferred & Common

18, 1955 on the basis of three

share

Price—$6

from

Flo-Mix

ISSUE

each

for

Fountain &

NEW

March

record

shares

April 8, 1955.

on

be

Proceeds—For investment.

share.

(par $1)

holders of

(4/6)

March 16 filed 126,755 shares of common stock (par
$5),
of which 96,755 shares are to be offered
by the company

2,000,000 shares of capital stock (par

per

Eleven Moore Street Corp.

Elsin

struction

Proceeds

•

Colgate,

subscription by
April 5 on the basis of

amendment.

14 filed

Price—$5

subscribed

Stainless Steel Corp.,

Md.

of

due

Carter

address.

(Republic of)

filed

G.

Dec.

new

Investment Co.

Jan. 20

Eastern

Cuba

Electronics Investment Corp., San Diego, Calif..

(letter of notification) $160,000 of first mortgage
6% bonds dated Dec. 1, 1954. Price — At par (in de¬
nominations of $1,000 each). Proceeds—For purchase of
real estate, capital improvements and contingencies. Of¬
fice—306 E. Main St., Johnson City, Tenn.
Underwrite*
—D. T. McKee Investment Co., Box 904, Bristol, Va.

Calif.

Jan.

Water Corp.

Dec. 20

both of New York.

March 21 filed 125,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬

Tennessee

East

65

(1429)

(4/7)
stock (par $10)
to be offered for subscription by common stockholders
of record about April 7 at the rate of one new share for
each 20 shares held (for a 14-day standby). Price—To
be supplied by amendment. Proceeds—For general cor¬
porate purposes. Underwriter—A. G. Becker & Co. Inc.,
Chicago, 111.
Continued on page 66
^ Gerber Products Co., Fremont, Mich.

March 18 filed 99,914 shares of common

^

66

*

The Commercial and Financial Chronicle

(1430)

Continued

Israel

from page 65

ir Gross Telecasting,
(4/11-15)

Feb.

Lansing, Mich.

Inc.,

(par

Underwriter—Paine, Webber, Jackson
Curtis, Boston and New York.

ing stockholders.
&

Gulf Cities Gas Corp.,

St. Petersburg, Fia.

31,500 shares of class A
Price—$7.75 per share. Proceeds — To
repay
notes and other obligations and
for working
capital. Underwriter—Eisele & King, Libaire, Stout &
Co., New York. Letter to be withdrawn; full registration
of about 50,000 shares expected. Offering — Expected
Feb.

(letter of notification)

15

stock

(par $1).

about May 2.

Gulf States

Utilities Co.

preferred stock, 1949 series, and 50,000 shares of $4.44
dividend preferred stock at the prevailing redemption
prices of $105, $105, and $105.75, respectively. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Stone & Webster Securities Corp.; Lehman
Brothers and Equitable Securities Corp. (jointly); Kuhn,
Loeb &

Co.; Glore, Forgan & Co. and W. C. Langley &
(jointly). Bids—Had tentatively been expected to be
received up to 11:30 a.m. (EDT) on June 15 at The
Hanover Bank, 70 Broadway, New York, N. Y.f but of¬
fering has been postponed.

Co.

May 14, 1954 filed $24,000,00 first mortgage bonds due
June 1, 1984. Proceeds—To redeem $10,000,000 of 3%%
first mortgage bonds due 1981 and $10,000,000 of 3%%
first mortgage bonds due 1983, and for general corpo¬
rate purposes.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler and Union Securities
Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly); Stone & Webster Securities Corp. Bids—Had
tentatively been expected to be received up to 11 a.m.
(EDT) on June 15 at The Hanover Bank, 70 Broadway,
New York, N. Y., but offering has been postponed.
Fire

Insurance

24 filed 100,000 shares of capital stock (par
$10)
being offered for subscription by stockholders of record
at

the

rate

of

one

new

share, for

each

four

shares held; rights to expire on April 4. Price—$42 per
share. Proceeds—To be added to the general funds of
the company to enable it to
expand its

business, particu¬
larly in the writing of casualty and multiple-line poli¬
cies. Underwriters—The First Boston Corp. and R. W.
Pressprich & Co., both of New York.

Jarmon Properties & Oil Development

Jan.

17

(letter

Offices

of

other.
Petroleum

Heliogen Products, Inc.
March 7 (letter of notification) 22,670 shares of
(par $1), of which

12,670 shares

are

common

being offered

Kentucky Utilities Co., Lexington, Ky. (4/5)
March 7 filed $5,000,000 first mortgage bonds, series F,
due April 1, 1985. Proceeds—For construction program.
Underwriter—To be determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; Harriman
Ripley & Co. Inc.; The First Boston Corp. and Lehman
Brothers (jointly); Union Securities Corp. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Blyth & Co.,
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Equitable Securities Corp. Bids — Expected
Probable

bidders:

to be received up to 10:30 a.m.

Kentucky

Utilities Co.,

(CST)

190,566 shares of

be

for

of

record

each

March

common

subscription by
21

the

on

April 5.

Lexington,

March 7 filed
offered

on

Ky.
stock

one

(par $10)

stockholders

common

basis of

new

share -for

12

tion

shares held; rights expire on April 11. Price—
supplied by amendment. Proceeds—For construc¬

Underwriters—Blyth

program.

&

Co.

Inc., New
York, and J. J. B. Hilliard & Sorv Louisville, Ky. Of¬
fering—Set for today (March 24).
Kin-Ark

Oil

Co., El Dorado, Ark. (3/29-30)
Feb. 24 filed 500,000 shares of common stock
(par 10
cents).
Price — $2.75 per share.
Proceeds — To repay
$279,000 mortgage indebtedness and $45,500 outstanding
notes; to pay $70,000 outstanding accounts payable, and
for

drilling of 14 additional wells and working capital.
Underwriter—Van Alstyne, Noel & Co., New York.

Mines, Ltd., Toronto, Can.
660,000 shares of common stock (par $1,
Canadian), of which 500,000 shares are to be offered in
behalf of the company and 160,000 shares for account
of Percy E. Rivett. Price—40 cents
per share, U. S. funds.
filed

Proceeds

—

For

development and exploration

expenses.

Underwriter—To be named by amendment.

if Laan-Tex Oil Corp., Dallas, Texas
9 (letter of
notification) 300,000 shares of

March

stock.

mon

Price—At par ($1 per share).

Proceeds—To

corporate
Underwriter—Woods & Co., Houston, Tex.

Lee Finance Co.,

Minneapolis, Minn.
(letter of notification) 13,000 shares of preferred
(par $10) and $170,000 of 8% subordinate notes
due five years from date of issue. Price—At
par.
Pro¬

Minn.

per

share.

Proceeds

Holly Uranium Corp., New York
10

(3/28-4/1)

filed 900,000 shares of

common stock
(par $1).
Price—$3.50 per share. Proceeds—To exercise certain
options on properties in Utah and New Mexico. Under¬

writer—Barrett Herrick & Co., Inc. and
Franklin, Meyer
& Barnett, both of New York.

if Induction Motors Corp. (3'30)
March 16 (letter of
notification) 12,500 shares of common
stock (par $1).Price—$6.75 per share. Proceeds—For
working capital and other general corporate
Office—570 Main St.,

purposes.

Westbury, L. I., N. Y.

Business—

Manufacture of precision subfractional
h.p. motors. Un¬
derwriter—C. E. Unterberg, Towbin &
Co., New York.
•

Industrial

Hardware

Manufacturing Co.,

Inc.

March 9 filed $3,000,000 of 6%
debentures due March
1975, of which $2,596,600 principal amount are to

1,
be

offered first to

stockholders. Price—To be
supplied by
Proceeds—To purchase preferred stock of
Hugh H. Eby Co., at par; to purchase real
estate, ma¬
amendment.

chinery and equipment, etc.; for the acquisition of all
stock of Eby
company and to pay certain bank

common

loans

and

notes

payable of Eby.

D.

Underwriters—Milton

Blauner & Co.,
Inc., New York; Hallowell, Sulz¬
berger & Co., Philadelphia; and Earuch
Brothers & Co.,
Inc., New York).

Inland

Western

Loan

& Finance
Corp.
2,500,000 shares of class A non-voting com¬
(par $1). Price—$1.25 per share. Proceeds—

Feb. 17 filed
mon

stock

To be used

as

operating capital for its two
subsidiaries,
and to finance establishment
and operation of additional
loan and finance offices.
Office—Phoenix, Ariz. Under¬
writer—None.

Investment Corp. of America
Aug. 30 (letter of notification) 3,799 shares of
cumula¬
tive preferred stock (no
par) and 3,799 shares of com¬
mon

stock (no par).

and for

Price—For preferred, $20

per

share;

$2 per share. Proceeds—For
working
capital. Office—3603 Broadway, San
Antonio, Tex. Un¬
derwriter—Interior Securities, Inc., San
Antonio, Tex.
common.




mon

bank

loans

and

for

working capital.
Bldg., Minneapolis,
Underwriter—Daniels & Smith, Inc., same city.
Northwestern

Federal

Spring Co.,

Inc. (4/7)
(letter of notification) 74,685 shares of com¬
stock (par 50 cents). Price—$4 per share. Proceeds

March

inventory and for working capital. Office
—55 Front St., Rockville
Centre, L. I., N. Y. Underwriter
—W. Harry Young Co., Garden
City, L. I., N. Y.

reduce

Office—305

common

—To increase

Feb.

ceeds—To

if Lee

Hobby & Brown Electronic Corp.
Feb. 24 (letter of
notification) 100,000 shares of
stock (par 10 cents).
Price—$1.25

March

11

18

stock

sell

(par

Mascot
Feb.

Liberty Uranium Corp., Salt Lake City, Utah
July 1 (letter of notification) 3,000,000 shares of common
stock (par one cent).
Price—Three cents per share.
Proceeds—For mining operations.
Office—402 Darling
Bldg., Salt Lake City, Utah.
Underwriter — Uranium
Mart, Inc., 146 S. Main St., Salt Lake City, Utah.
Lucky Lake Uranium, Inc., Salt Lake City, Utah
Feb. 9 (letter of notification) 8,000,000 shares of
capital
stock.

Price—At par (two cents per share). Proceeds—
mining expenses. Office—201 Boston Building, Salt
Lake City, Utah.
Underwriter—Kastler Brokerage Co.,
same city.
For

Mines, Inc., Kellogg, Ida.

(letter of notification) 200,000 shares of common
stock (par 35 cents). Price—75 cents per share. Proceeds
—For mining expenses. Underwriter—Standard Securi¬
ties

Corp., Spokane, Wash.

•

Merritt-Chapman & Scott Corp.
Dec.
21
filed 3,018,567 shares of common

stock (par
$12.50) being offered in exchange for outstanding stock
of New York Shipbuilding Corp., Devoe & Raynolds

Co., Inc., Newport Steel Corp., Marion Power Shovel
Co., Osgood Co. and Tennessee Products & Chemical
Corp. on the following basis: 675,549 shares to holders
of the

540,439 outstanding shares of common stock (par
Tennessee Products & Chemical Corp., at the

of

$5)
rate

of

IV4

shares

stock

(par $1)

rate of

mining operations. Office—38 South Main
St., Salt Lake City, Utah. .Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.

Mac Fos Uranium, Inc., Salt Lake
City, Utah
Sept. 16 (letter of notification) 4,000,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share
Proceeds—For exploration and development costs. Office
—239 Ness Bldg., Salt Lake City, Utah.
Underwriter—

for each 2.1

share of

writer—Mid-Continent Securities, Inc., the same city.

Inc.
com¬

Pro¬

to

be

city.

offered

common

the

of

not

for each

Offer

Corp.

70,000 shares of
in

stock

(par $5)

exchange for all the issued and

stock

1,410

expire

on

common

March 28.

stock of Osgood.

Dealer-Manager—A.

C.

Allyn & Co., Inc. for Devoe & Raynolds exchange.
Petroleum Co., Inc., Wichita, Kans.
(letter of notification) 75,000 shares of common
stock (no par). Price—$4 per share. Proceeds—To com¬
9

wells already drilled on properties owned by
and to drill additional wells. Office—303 In¬
Building, Wichita, Kans. Underwriter—Albert
C. Schenkosky, same city.
plete

company;
surance

if Metallics Recovery Corp., Florence, Colo. (3/29)
March 14 (letter of notification) 600,000 shares of com¬
mon
stock (par five cents).
Price—50 cents per share.
Proceeds—For

general corporate

out¬

purposes.

Underwriter

—Universal Securities Co., New York.
Mi-Ame Canned

Beverages Co.,

Hialeah, Fla.

Oct. 28 (letter of notification) 200,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To pur¬
materials and

raw

new

Underwriter

—

machinery, and for work¬
Frank D. Newman & Co.,

Miami, Fla.
Micro-Moisture Controls,
Jan.

Inc.
(letter of notification) $250,000 of 6%% income

13

convertible debentures

(subordinated) due Feb. 1, 1965,
initially to stockholders. Price—100% of
par (in units of $100 or multiples thereof).
Proceeds—
For working capital, etc.
Office—22 Jericho Turnpike,
to

be

offered

Mineola, N. Y.

Underwriter—None.

Military Investors Financial Corp.
Dec. 1 (letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
For general corporate purposes.
Office—2310 Main St.,
Houston, Texas.

Underwriter—Cobb

&

Co., Inc.,

same

city.
Model
28

Finance

filed

Service, Inc.

$600,000 of 6%

subordinated

debentures,
purchase warrants for a
18,000 shares of $1 par value common stock (a
warrant for 30 shares for each $1,000 debenture) to be
offered in units of a $500 debenture, plus a warrant for
purchase of 15 shares of stock at $2 per share. Price—
$500 per unit. Proceeds—For payment of certain notes.
with detachable

common

stock

of

Office—Jackson, Mich. Underwriter—Paul C. Kimball
& Co., Chicago, 111.
Offering—Expected first or second
of

week

April.
Business

Machines

Corp.

(letter of notification)

$175,000 of convertible
three-year notes. Price — At 100% of principal amount.
Proceeds—To reduce accounts payable and other general
corporate purposes. Office—944 Halsey St., Brooklyn 33,

N. Y.

Underwriter—None.

Monte

Cristo

Uranium

Corp., Moab, Utah
3,000,000 shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., 139 North Virginia
St., Reno, Nev.
mon

Jan.
common

17,409

IVz shares of class B

will

5

(letter of notification)

stock

Montezuma

Midland

stock of

common

the

of

common

Oct.

ceeds—For mining operations. Office—587 — 11th
Ave.,
Salt Lake City, Utah.
Underwriter—Potter Investment

21 filed

stock of N. Y.

of Marion; and 940 shares
outstanding shares of class B
stock (without par value) of the Osgood Co.,
owned by Merritt or Marion, at the rate of one share

holders

to

March 18

March

shares of

holders

to

Magic Metals Uranium Corp.
Sept. 14 (letter of notification) 2,995,000 shares of com¬
mon stock (par one
cent). Price — 10 cents per share.
Proceeds—For exploration and development expenses.
Office—65 East 4th South, Salt Lake
City, Utah. Under¬

same

common

Newport; 26,114
outstanding shares of
common
stock (par $10) of Marion Power Shovel Co.,
not
owned by Merritt, at the rate of 1%
shares for
shares

if Mohawk

if Marine

shares for

common

share for each share of

one

Utah Securities Co., same city.

Co.,

of

Shipbuilding; 27,907 shares to holders of the 58,605 out¬
standing shares of common stock (par $1) of Newport Steel
Corp., not owned by Merritt, at the rate of one share

ceeds—For

share).

stock

stock of Devoe; 1,290,252 shares
1,290,252 outstanding shares of common
stock (par $1) of New York Shipbuilding Corp., at the

total

per

common

to holders of the

Feb.

(one cent

of

of Devoe, at the rate of

each of class B

•

Lucky Strike Uranium Corp.

20,900,000 shares of

share

for each

Tennessee; 755,105 shares to holders of the 453,063 out¬
standing shares of class A stock (par $2) of Devoe &
Raynolds Co., Inc. at the rate of 1% shares for each
share of class A stock of Devoe; 242,700 shares to holders
of the 182,025 outstanding shares of class B common

Jan. 4 (letter of notification) 4,300,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬

par

Office—17 West 44th

Underwriter—General Invest¬

17

ing capital.

Price—At

com¬

one

home unit fire extinguisher.

a

chase

machinery, equipment and working capital. Busi¬
mechanical coil springs. Office—30
Main St., Brooklyn 1, N. Y. Underwriters—S. D. Fuller
& Co., and Vermilye
Brothers, both of New York.

stock.

(3/31-4/4)

Inc.

cent). Price—$1 per share. Proceeds
—For working capital. Business — To manulacture and
mon

ness—Manufactures

Marble Canyon Uranium,
Feb. 4 (letter of notification)

Underwriter—None.

Co.,

(letter of notification) ,300,000 shares of

—For

mon

Chemical

Mesa

Nov. 3

N. Y.

Underwriter—Smith & Co., Waterville, Me.

Marlowe

Feb.
com¬

outstanding debt and for other general

pay

subscription by stockholders up to and including
15, 1955, and 10,000 shares are to be offered pub¬
licly. Price—$5 per share. Proceeds—For working capi¬
tal, etc. Office—35-10 Astoria Blvd., Long Island City,
June

•

each

Lake Lauzon

stock

for

stock held of record April 8, 1955.
The offer is
subject to acceptance deposit of not less than 80% (11,200

ing Corp., New York.

Co.

(letter of notification) 2,650,000 shares of com¬
stock (par five cents).
Price—10 cents per share.
Proceeds
For oil and mining expenses. Office—318
Phillips Petroleum Bldg., Salt Lake City, Utah. Under¬
writer—Hunter Securities Corp., New York.

•

tional

9

mon

To be

Rome, N. Y., at the rate of five shares

Midland stock for each share of Farmers Na¬

St., New York 36, N. Y.

Justheim

Dec.

Trust Co. of Rome,
of Marine

shares) of Farmers National.

Corp.

notification)

30,000 shares of captal
stock. Price—At par ($10 per share). Proceeds—For fur¬
ther exploration and development. Addres—P. O. Box
1109, Wichita Falls, Tex. Underwriter—John A. Aicholtz
& Associates, 505 Macon
St., Fort Worth, Tex., and an¬

purposes.

•

stock

Underwriter—None.

—Natanya, Israel, and New York, N. Y.

Aug. 2

Co.

Feb.

16

one

to

Gulf States Utilities Co.

March

standing capital stock of The Farmers National Bank &

—

May 14, 1954 filed 160,800 shares of preferred stock (par
$100). Proceds—To redeem 50,000 shares of $4.50 divi¬
dend preferred stock, 60,000 shares of $4.40 dividend

Hanover

Ltd.

Plantations,

24,900 shares of ordinary common stock
Israeli pound). Price—$10 per share. Proceeds

^

of common stock (par $1).
supplied by amendment. Proceeds—To sell¬

March 21 filed 193,000 shares
Price—To he

Pecan

filed

—For capital expenditures.

•

,

x

28

Thursday, March 24, 1955

..

5

Uranium, Inc.,

(letter of notification)

stock

Denver, Colo.

3,000,000 shares of

com¬

(par five cents). Price—10 cents per share.
Proceeds—For exploration and development operations.
mon

Volume

181

Number 5414

Office—Ernest

.

.

Cranmer

and

The Commercial and Financial Chronicle

.

Bldg., Denver, Colo.

Un¬

derwriter—Investment Service Co., same city.

(letter of notification) 10,000,000 shares of com¬
stock. Price—At par (two cents per share).
Pro¬
ceeds—For mining operations.
Office—470 South 13th
East, Salt Lake City, Utah. Underwriter—M. C. Leon¬
ard and Associates, 602 Tribune
Bldg., Salt Lake City.

mon

Utah.

National Aviation

Feb.

18

filed

shares

stock

capital

of

$5)

(par

being offered for subscription by stockholders at rate of
one

share

new

March

10

for

(with

each

shares

four

same

Underwriter—Allied

city.

held

of

as

record

★ Savannah
March

Dallas, Texas
(letter of notification) 5,990,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For exploration and drilling expenses and work¬
ing capital. Underwriter—Carroll, Kirchner & Jaquith,
Inc., Denver, Colo.
\
Feb. 21

Petro-Minerals, Inc., Houston, Tex.
March 15 filed 500,000 shares of capital stock

Corp., New York

111,618

St., Las Vegas, Nev.

Pecos Mining Co.,

Jan. 28

-

Fremont

Underwriter Co.. the

Mother Lode Uranium Co.

.

230

(par 10

cents), of which 195,714 shares are to be offered by com¬
pany and 304,286 shares by a selling stockholder, to be
offered for subscription by stockholders and warrant
holders of Johnston Oil & Gas Co. of record April 1 on
the basis of one new share for each four shares of John¬

Agent—The Hanover Bank, New York City.
•

National

Feb.

Gypsum Co.

464,325 shares of common stock (par $1)
being offered for subscription by common stockholders
of

record

for

March

each

1935.

six

21, 1955 at the rate of

shares

Price—$40

penditures

and

one

held; rights to expire
share.

per

working

Proceeds—For

capital.

share

new

#. National

capital ex¬
E.

Underwriters—W.

Shares

Corp., New York
360,000 shares of capital stock (par $1)
being offered for subcription by stockholders of record
7

March

21

filed

on

shares held
to

expire

on

the

one

new

share

for

each

two

(with an oversubscription privilege); rights
April 4. Price—$15 per share. Proceeds—

For investment.
New

basis of

Underwriter—None.

England Telephone & Telegraph Co.

rate

of

one

new

Petroleum
Feb.

share for each five shares

rights to expire on March 31. Price—At par
share). Proceeds—To repay advances from

loans and for

Price—To be supplied amendment.
Proceeds—
acquisition of producing oil and gas properties. Un¬
derwriter—Smith, Barney & Co., New York.
For

Devices

held;

($100 per
American

(letter of notification) 2,500 shares of common
(no par). Price—$100 per share. Proceeds—For

•

Oils, Ltd., Toronto, Canada

$100

par

shares of 4.20% cumulative

(convertible into

preferred share for each 21 shares of

(no par), of which 120,000 shares are to be offered in
Canada and 155,000 shares in the United States. Price—
55 cents per share. Proceeds
To selling stockholders.

Price—$105

,

Letter

stock

(par two cents).

Price—10 cents per share. Pro¬
exploration and development costs. Under¬

ceeds—For

writers—Percy Dale Lanphere and R. E. Nelson & Co.,
both of Spokane, Wash.
• Norden-Ketay Corp., New York
March

filed

16

22,500 shares of

pursuant to exercise of 90,000
sold to
of

the

underwriters

400,000 shares of

boratories.

of

stock purchase warrants
offering in 1951

stock

holders

of

are

The Norden

entitled

La¬

receive

to

share of Norden-Ketay stock for each four warrants
exercised at $12 per share. Proceeds—For general cor¬

one

porate

purposes.

^ North Star Oil & Uranium Corp.
15 (letter of notification) 23,333 shares of

March

stock

mon

(par five cents).

$1.50 per share.

Price—At market

Gas

&

Electric

being offered for subscription by
March

each

eight

right
any

to

shares

subscribe

on

the

held.

for

—

$31.50

program.
& Beane,

per

basis

common

of

Employees

one

stockholders

new

will

be

share
g.ven

for

share.

Proceeds.— For construction

Underwriter—Merrill

Lynch,

Pierce,

Fenner

New York.

Pacific

Northwest

Pipeline Corp. (4/4-7)
$17,220,000 of 6% interim notes due June
1, 1957 and 287,000 shares of common" stock (par $1) to
be offered in units of $60 principal amount of notes and
share of stock.

Price—To be supplied by amendment

(expected to be $70 per unit). Proceeds—Together with
funds, to finance construction of a 1,466 mile
natural gas pipe line between Ignacio, Colo., and Sumas,
other

Wash,

the Canadian border. Underwriters
White,
Co.; Kidder, Peabody & Co.; The Dominion Se¬
curities Corp.; and Union Securities Corp.
Financing
plans also include offering to present stockholders of
1,549,100 shares of common stock $10 per share, without
underwriting.
Weld

on

Co.

(par

Brothers, New York.

Realty, Inc., Cincinnati, Ohio

March 8 filed

$1,000,000 of 5^2% cumulative convertible
1980 and 25,000 shares of common
Price—Par for debentures and $100 per
share for stock. Proceeds
To purchase real estate or
interest therein. Underwriter—Stanley Cooper Co., Inc.,
debentures due Jan. 1,

stock

(no par).

—

Cincinnati, O.

-fa Rittenhouse Fund, Philadelphia, Pa.
March 15 filed 60,000 participating units in
Price—At market.
Ritter

100% of principal amount.

Proceeds

—

Price—

For working

capital.

Underwriters—Kuhn, Loeb & Co. and Carl JVI.
Loeb, Rhoades & Co., both of New York.
Paramount Uranium Corp., Moab, Utah
Oct. 7 (letter of notification) 6,000,000 shares of capital
stock. Price—At par (five cents per share). Proceeds—
expenses.

Office—325 Main St., Moab, Utah.

Underwriter—Van Blerkom & Co., Salt Lake City, Utah.

Pay Day Uranium Co., Las Vegas, Nev.
notification) 2,500,000 shares of capital
stock (par two cents). Price—10 cents per share. Pro¬
ceeds—For exploration and development costs. Office^Oct. 15 (letter of




Finance

Feb. 24 filed

be amended.
development
and exploration expenses. Office—Newhouse Hotel, Salt
Lake City, Utah. Underwriter — Van Blerkom & Co.,

underwriter and prior property owner to
Price—10 cents per share.
Proceeds—For

#

city.

Solomon Uranium & Oil Corp., Inc.
Oct. 7 (letter of notification) 2,000,000 shares

of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Offices — 506 Beason
Bldg.,: Salt Lake City, Utah, and 1016 Baltimore Bldg.,
Kansas City, Mo. Underwriter—E. R. Bell & Co., Kansas
City, Mo.

common

Proceeds—For investment.

Co.,

Inc.,

Syncote, Pa.

4,000 shares of 5 ¥2% cumulative preferred

(par $50) and 40,000 shares of class
stock (par $1) to be offered in units of one

preferred share and

Price—$75 per
loans and for working

10 class B shares.

Proceeds—To reduce bank

Underwriter—None.

Samicol Uranium Corp., Santa Fe, N. M.

Sept. 14 filed 300,000 shares of common stock (par 10
cents).
Price—$2.per share.
Proceeds—For develop¬
ment and exploration expenses, etc.
Underwriters—R.
V. Klein Co. and McGrath Securities Corp., both of
New York.

Southeastern

Public

Service

Co.

Jan. 24

(letter of notification) 28,000 shares of common
(par 10 cents) being offered in exchange for

stock

Hamilton Gas Corp.

capital stock (par $1)

of 3% Southeastern shares for each

the basis

on

Hamilton share. This

offer shall terminate when offer shall have been accept¬

by Hamilton stockholders owning not in excess of
Office—70 Pine St., New

8,000 shares of Hamilton stock.

Underwriter—None.

N. Y.

Southern States
Feb.

25 filed

Oil Co.

(4/4-7)

250,000 shares of common stock

(par one

Price—$2 per share. Proceeds—For further ex¬
ploration and development of properties, for drilling
costs and for acquisition" of interests in other oil com¬
panies. Office — Laurel, Miss. Underwriter — Gordon
cent).

Graves &

Co., Inc., New York.
Union

Southern
Feb.

Oils,

Ltd.

16 filed

1,211,002 shares of common stock (par $1)
of which 511,002 shares are to be offered for subscription
by existing stockholders on a basis of one new share for
share

April 12.
and to

sale
per

held,

Price

as

—

public, at

on

a

Toronto

of

March

15;

rights to expire

on

To stockholders, 50 cents per share;

market price to be equivalent to last
Exchange—65c-75c (ex-rights)

Stock

share. Proceeds—For exploratory and developmental

for possible acquisition of additional oil and
interests; and to meet current liabilities. Office—
Toronto, Canada. Underwriter — Willis E. Burnside &
expenses;

gas

Star Uranium Corp., Salt Lake City, Utah
Aug. 2 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds
For exploration and
development costs.
—

Underwriter—Ned J. Bowman Co., Salt Lake City,

Miguel Uranium Mines, Inc.
1
(letter of notification) 2,000,000 shares of common
stock (par one cent). Price—15 cents per share.
Pro¬
ceeds—For mining operations.
Office — Mineral Bldg.,
Grand Junction, Colo.
Underwriter — Tellier & Co.,
Jersey City, N. J.

Utah.

Stardust, Inc., Reno, Nev,

July 9 filed 621,882 shares of preferred stock (par $10)
and

621,882 shares of common stock (par one cent) to be

offered in units of

one

share of each class of stock. Price

—$10.01 per unit. Proceeds—For purchase of land and to
construct and equip a luxury hotel. Underwriter—None.
Stewart Oil & Gas Co., San

Angelo, Texas

March 14 filed 750,000

shares of common stock (par 100).
Price—$1 per share. Proceeds—To repay bank loan, and
for development of properties and other activities inci¬
dent

San

Jan. 6

stock

mon

Co., Inc., New York.

the Fund.

stock, third series
B

450,000 shares are tendered.

Oct. 8 (letter of notification) 2,900,000 shares of common
stock (par five cents), including shares for option to

each
Revere

capital.

mining

&

(letter of notification)

Underwriter—Lehman

of debentures for each 40 shares of stock

held.

at least

ed

3,000 shares of $1.25
$10) and 18,000 shares of
common stock (par $1).
Price—At market (about $9 per
share for preference stock and about $1.25 for common
stock). Proceeds—To Trust of Arthur M. Reis, deceased.

unit.

For

(Robert)
15

eight shares of Venezuelan stock
of this offer provided

tendered for exchange under terms

York 5,

prior preference stock

^ Pan American Sulphur Co., Dallas, Texas (4/7)
March 18 filed $4,651,200 of subordinated debentures,
due April 1, 1967 (convertible until April 1, 1964) to be
offered for subscription by stockholders at rate of $100
At

Co., both of Los Angeles, Calif.

—

&

Sinclair stock for each

,

Underwriter—None.

Reis

(no par)
stock of

Venezuelan Petroleum Co. in the ratio of five shares of

pro¬

(regulation "D") 300,000 shares of common stock
(par 10 cents). Price—$1 per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter—James Anthony
Securities Corp., New York.

March

York-

Slick Rock Uranium Development Corp.

Ranger Lake Uranium Mines, Ltd., Toronto,

March 9 filed

one

Sinclair Oil Corp., New

Underwriter—None.

Pyramid Life Insurance Co., Charlotte, N. C.
Feb. 15 filed 250,000 shares of capital stock (par $1) to
be offered for subscription by common stockholders of
record March 1, 1955 on the basis of one new share for
each three shares held.
Any shares remaining unsub¬
scribed 30 days following date of mailing of warrants
will be disposed of through the company's executive
committee. Price—$3.75 per share. Proceeds—To expand

the

exceeding 12,000 shares of
Rights will expire on April 5.

17

March 7 filed 337,830 shares of common stock
to be offered in exchange for shares of capital

stock held.

Canada

not

unsubscribed stock.

Price

•

16

common

Dec. 30

(par $10)

Salt Lake City, Utah
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses. Office—130 South 1&&
East, Salt Lake City, Utah. Underwriter—Peters, Writer
& Christensen, Inc., Denver, Colo.

pre¬

Of¬

Co.

Silver Reef Uranium Co.,

Jan.

same

business.

III.

Chicago,

(letter of notification) 2,994,000 shares of com¬
(par five cents). Price—10 cents per share.
Proceds—For exploration and development costs.
Of¬
fice—211-206 N. Virginia Street, Reno, Nev. Underwriter
—Western Securities Corp., Las Vegas, Nev.

stock

it Purex Corp., Ltd.
March 7 (tetter of notification) 3,932 shares of common
stock (par4$F). Price—At market. Proceeds—For work¬
ing capital. Underwriters—Blyth & Co., Inc., and Wil¬
liam R. Staats &

Inc.,

stock

mon

Underwriters—Morgan Stanley & Co.; Drexel &
Co.; and Glore, Forgan & Co. Offering — Temporarily
delayed.
,

Shares,

Silver Pick Uranium, Inc., Reno, Nev.

gram.

Underwriter

Feb. 23 filed 331,643 shares of common stock
of record

(around

Proceeds—To selling stockholder.

fice—295 Madison Ave., New York 17, N. Y.
—None.

Oklahoma

com¬

common

bank loans and for construction

ceeds—To reduce

American

Nov. 22

250,000 shares of cumulative preferred stock
Price—To be supplied by amendment. Pro¬

the public

common

The warrant

stock issuable

common

Dec. 22 filed

(4/5)

Shumway Uranium Mining Corp.
(letter of notification) 200,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—64 East 4th South St., Salt Lake
City, Utah. Underwriter—Doxey Investment Co., same
city.

Public Service Electric & Gas Co.

(par $100).

Now Silver Belle Mining Co., Inc., Almira, Wash.
Sept. 8 (letter of notification) 500,000 shares of common

additions.

Corp.

ceeds—For investment.

share. Proceeds—For repayment of bank

loans and for property

—

Underwriter—L. D. Friedman & Co., New York.
has been withdrawn.

per

Sealed Power

Selected

stockholders of record April 13 on the basis of one

Dec. 28 (regulation "D") 275,000 shares of common stock

Corp., both

March 18 filed (by amendment) 400,000 additional shares
of common stock (par $2.50).
Price—At market. Pro¬

after July 1, 1956) to be offered for subscription by com¬
mon

construction. Underwriters—The First

new

Underwriter—A. G. Becker & Co. Inc., Chicago, 111.

★ Public Service Co. of Indiana, Inc.
stock,

\

50,000 shares by selling stockholders. Price—To be sup¬
plied by amendment. Proceeds — For capital additions
and improvements.
Office — Muskegon Heights, Mich.

Office—68 Albany St., New Bruns¬
wick, N. J. Business—Manufactures and markets Super
Ad Conveyors, a lighted system of moving transparent
advertisements. Underwriter—None.

ferred

(4/14)

March 16 filed 100,000 shares of common stock (par $10),
of which 50,000 shares are to be offered by company and

working capital, etc.

March 18 filed 202,431

& Telegraph Co., the parent, which owns
shares (69.21%) of the
outstanding stock.
Underwriter—None.
&

v

Corp.

Co.

Boston Corp. and Stone & Webster Securities

stock.

Prospect Atomic

Power

&

165,000

Jan. 28

$7,500,000 of 4% debentures due 1970,
100,000 shares of 5% preferred stock (par $25) and
1,000,000 shares of common stock (par 10 cents) to be
offered in units of $750 principal amount of debentures,
10 shares of preferred stock and 100 shares of common

1,769,035

New Pacific Coal

Un¬

Reserves, Inc., New York

Telephone

•

corporate expenses.

filed

14

stock

subscription by stockholders of record March 1, 1955

at the

and for other general
derwriter—None.

penses,

March 16

Feb. 4 filed 511,205 shares of capital stock
befing offered
for

purchased by other Johnston Oil stockholders. Price
—$1 per share. Proceeds—For geological and other ex¬

April 4,

on

Hutton & Co. and Blyth & Co.,
Inc., both of New York.

March

(or represented by warrants held).

not

filed

28

Oil stock held

ston

Electric

filed

shares of common stock (|&?
$10), of which 65,000 shares are to be offered for sale
by the cbmpany and 100,000 shares by the Donner Fam¬
ily Trusts and Donner Foundation, Inc. Price—To be
supplied by amendment. Proceeds — To repay bank

Johnston Oil has agreed to purchase any company shares

—

17

of New York.

oversubscription privilege); rights
to expire on March 25. Price—$30 per share. Proceeds
—For investment.
Underwriter
None.
Subscription
an

67

(1431)

to

oil

Herrick &

Storer

and

gas

operations.

Broadcasting Co.

March 10 filed 262,750 shares
Price

—

To

Underwriter

—

Barrett

Co., Inc., New York.

be

supplied

(3/29)
of common stock (par $1).

by amendment.

Proceeds

Continued

on

—

page

To

68

68

The Commercial and Financial Chronicle

(1432)

...

Thursday, March 24, 1955

i

Continued

from

Topp Industries, Inc., Los Angeles, Calif.

67

page

-V)

March 9 filed

approximately
$10,000,000; and to redeem all or part of the outstanding
15,000 shares of 7% cumulative preferred stock (par
$100) at $107 per share. Underwriter—Reynolds & Co.,
4%%

reduce

1955-1961,

due

notes,

by

New York.

Hotel, Inc., Las Vegas,
760,000 shares of pfd.
and 1,540,000 shares of common
cents), of which 680,000 shares of

Feb. 16 filed

shares

capital stk. (par $9.50)
capital stock (par 25
preferred and 1,360,000

afje to be offered in units of one preferred and
shares; the remaining 80,000 shares of pre¬

two common

ferred

and

stock

shares of

180,000

stock

common

may

Price—$10 per unit. Pro¬
ceeds—To purchase property; for construction of hotel;
and for working capital.
Underwriter—Coombs & Co.,
Salt Lake City, Utah.
be

•

exchanged for properties.

Sundstrand

Machine Too!

Co.

March 4 filed 108,885

additional shares of common stock
being offered to common stockholders on the

(par $5)
basis of
March

new

one

share

for

five

each

held

shares

as

of

22; rights to exp're on April 6, Price—$35 per
Proceeds—For expansion and general corporate

share.

Underwriters—Merrill Lynch, Pierce, Fenner

purposes.
& Beane,

York;

New

Whipple

Bacon,

& Co., Chicago,

111.; Dean Witter & Co., San Francisco, Calif.
Sunshine
Nov.

18

$700,000

of 6%

1966 and 70,000

Inc. (Fla.)
convertible sinking fund
shares of common stock

working capital, etc.

Co., St. Louis,

Price — 100% and accrued interest for
$2 per share for stock. Proceeds—To
repay bank loans, for new construction and for working
capital. Underwriter—Gulf-Atlantic, Inc., Tampa, Fla.

(letter of notification) 29,910,000 shares of com¬
mon stock.
Price—At par (one cent per share). Proceedi
—For development and exploration costs. Office—Medi¬

cal Arts

Bldg., Las Vegas, Nev.
Brokers, Inc., the same city.

Underwriter—Uranium

Swedes

Uranium Corp., Salt Lake City, Utah
(letter of notification) 2,500,000 shares of com¬
stock (par three cents). Price—10 cents per share.

Jan.

5

mon

Office —1406

ties.
Texas.

Lake

Life

Underwriter

—

of

Western

City, Utah.

stock.

mon

Price—10

cents

per

share.

Proceeds—For

exploration and development expenses.
Railway Exchange Building, Denver, Colo.
—E. I. Shelley Co., Denver, Colo.

Office

—

317

Underwrite!

Temple Mountain Uranium Co.
(letter of notification) 3,500,000 shares of com¬
(par 2V2 cents). Price — 3 cents per share.
Proceeds—For exploration and development expenses.
Office—39 Exchange Place, Salt Lake
City, Utah. Un¬
derwriter—Walter Sondrup, same city.
Tennessee
March

11

filed

Gas

Transmission

$25,000,000

mon

For

—

Office—424

Co.

struction.

Underwriters

—

iSbrp.; White, Weld & Co.

Stone

and

Union

&

Webster

Texas International Sulphur Co.
June

21

exploration

1

455,000 shares of common stock (par 10
cents), of which 385,000 shares are to be offered for
igubscription by common stockholders at the rate of one
new

share for each 4%

shares held;

and 70,000

sharei
ere for account of certain
selling stockholders. Price—To
be supplied by amendment.
Proceeds—For exploration
end drilling, and payment of bank loans and advances
Underwriter—Vickers Brothers, New York, on a "best ef¬
forts" basis.

•fr Texas
March
mon

Uranium Development Corp.
(3/29)
(letter of notification) 298,000 shares of

stock

Club,

100,000

offered

Underwriter

Lentz, Newton & Co., San

Texboard, Inc., Dallas, Texas
17 filed $1,500,000 of 6% series A
debentures due
serially from Feb. 1, 1957 to Aug. 1, 1961, and $1,000,000
Jan.

of 6%

Feb.

series B convertible debentures due
serially from
1, 1962 to Aug. 1, 1966. Price—To be supplied
by

amendment.

Proceds—To construct and operate

facturing plant

manufacturing

a manu¬

Orange, Tex., for the purpose of
insulation
building products.
Under¬
near

writer—Emerson

Cook

Co., Palm Beach, Fla.

—

Virginia

St., Reno, Neb.

Underwriter—Stock, Inc., Salt Lake City
Tip Top Uranium & Oil, Inc., Denver, Colo.

JEeb.
mon

(letter of notification) 30,000,000 shares of
stock.
Price—At par (one cent per share).
1

in

units

United

of

of

ceeds—For

mining

expenses.

Center,
son,

Office—1122

Mile

Denver 2, Colo. Underwriter—Robert W.
1717 East Colfax Ave., Denver, Colo.




Office—601

common

$10 per share. Proceeds

—

—

For

Chapel Ave., Merchantville, N. J.

J.

Webster

stock

common

preferred

Under¬

(par $50)
to be

10

common

through agents.

Nov.

ture

and

Weld

of

one

Proceeds
Perkins

For

—

&

working

Price—$11

capital.

per

Underwriter

—

At par

($1

•

F.

in

connection

with

Underwriter

competitive

Underwriter

bidding.

Probable

—

To

be

bidders:-

Hills

•

filed

31

White Canyon

Mining Co. (3/29-30)
3,000,000 shares of common stock (par 33%
cents). Price—$1 per share. Proceeds—To repay loans
and advances; for capital
acquisitions; and for expendi¬
tures and working capital. Office — Dove
Creek, Colo.
Underwriters—Joseph McManus & Co., New York; and
A. P. Kibbe & Co., Salt Lake
City, Utah.

Feb. 4 filed

publication

Underwriter

—

of a monthly
Lewellen-Bybee Co.,

White

Uranium, Inc., Salt Lake City, Utah
(letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For exploration and development costs.
Of¬

River

Propane Gas Co., Inc. (4/11-12)
$400,000 of 6% convertible debentures,
A, due April 1, 1965, and 50,000 shares of common
stock (par $1).
Price—100% and accrued interest for
debentures, and $6 per share for stock. Proceeds—To
repay bank loans, etc., and for equipment, expansion and

7

March

11

filed

series

Building, Salt Lake City, Utah. Under¬
Securities Corp., Las Vegas, Nev.

writer—Western

working capital.

Utah Apex Uranium Co.

Oct.

construction.

new

by

Inn, Fort Worth, Texas
200,000 shares of capital stock (no par).
Price—$5 per share.
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas.
Underwriter—
Schwanz & Co., Inc.,
Aurora, 111.

Utaco

Felt

for

Western

Jan.

Washington, D. C.
Oct.

and

ly); Kidder, Peabody & Co.; The First Boston Corp. Bids
—Expected to be received up to 10:30 a.m. (CST) on
April 6.

Publishing Co.

Digest."

Texas

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and Salo¬
Bros. &Hutzler (jointly); Merrill,
Lynch, Pierce, Fen¬
ner & Beane; Equitable Securities
Corp.; Glore, Forgan
& Co.; Kuhn, Loeb & Co. and Lehman Brothers
(joint¬

March 4 (letter of notification) 25,000 shares of common
stock. Price—At par ($1 per
share). Proceeds—For ex¬
"Uranium

Co., Dallas, Tex.

mon

(letter of notification) 1,000,000 shares of capi¬
tal stock.
Price—At par (five cents per share).
Pro¬
ceeds—For core drilling program
upon two groups of

penses

West

determined

per

Wallace, Idaho.

supplied by

private sales of

Co. and Union Securities
Corp., both of New
Offering—Postponed indefinitely.

loans

Nov. 16

Address—Box 709,

stock and

Utilities Co. (4/6)
$7,500,000 of first mortgage bonds, series D,
due April 1, 1985. Proceeds—To be used to retire bank

Discovery & Development Co.,
Wallace, Idaho

claims.

common

March 9 filed

Universal Petroleum Exploration &
Drilling Corp.
Oct. 4 (letter of notification) 300,000 shares of common
—

be

ceeds—Together with other funds, to be used to build
pipeline. Underwriters—White, Weld & Co. and Union
Securities Corp., both of New York.
Offering—Post¬
poned indefinitely.

Co., Dallas, Texas.

Price

Price—To

Proceeds—From sale of units and 1,125,000

West Coast Pipe Line

unit.
J.

share of stock.

one

Nov. 20, 1952 filed 1,125,000 shares of common stock
(par
50 cents).
Price—To be supplied by amendment. Pro¬

stock (no par) and 27,000 shares
(par 15 cents) to be offered in units

share of each class of stock.

Co., Dallas, Tex.

$29,000,000

&

York.

preferred
stock

Underwriter-

$55,000,000 first mortgage bonds to be used to build a
1,030 mile crude oil pipeline. Underwriters — White,

Finance

common

filed

additional shares of

Corp., Dallas, Texas
(letter of notification) 27,000 shares of 70-cent

16

1952

purposes.

Co., New York.

Dec.

amendment.

Street, Denver 2, Colo.

Feb.

Canada

12-year 6% debenturei
15, 1964, and 580,000 shares of common stock
(par 50 cents) to be offered in units of one $50 deben¬

cents per share; and 2,000,000 shares are to be
publicly offered at 10 cents per share. Proceeds—For
mining expenses. Underwriter—John L. Donahue, 430

Universal

20,

due

three

16th

corporate

West Coast Pipe Line

Uranium

offer of rescission to 37 shareholders at

an

general

Willis E. Burnside &

Uranium Corp., Denver, Colo.
(letter of notification) 4,133,329 shares of com¬
stock (par one cent), of which
2,133,329 shares are

by

Toronto,

three weeks.

ceeds—For

United

mon

Ltd.,

per

Wenga Copper Mines, Inc., N. Y.
Nov. 18
(Regulation "D") 900,000 shares of common
stock (par five cents). Price—30 cents per share.
Pro¬

$10)

and

Mines,

Price—$1

share. Proceeds—For gen¬
purposes.
Underwriter—James Anthony
Securities Corp., New York. Offering—Expected in two

or

(par

Uranium

(par 10 cents).
eral corporate

Jan. 26

Office—Batesville, Ark. Underwriter—
King, Libaire, Stout & Co., New York.

Eisele &

18

(letter of notification) 3,000,000 shares of capi¬
tal stock (par three cents). Price—Six cents
per share.

Winfield

Mining Co., Moab, Utah.
(letter of notification) 500,000 shares of common
(par five cents). Price—20 cents per share. Pro¬
ceeds—For mining expenses.
Office—M. L. C. Bldg.,

Proceeds—For

Jan. 20
stock

exploration and development expenses
Judge Bldg., Salt Lake City, Utah. Under¬
writer—Mid-Continent Securities, Inc., same city.

Utah Uranium Corp., Las
Vegas, Nev.
Aug. 20 (letter of notification) 10,000,000 shares of capi¬
tal stock (par 1 cent).
Price — Three cents per share.

Proceeds—For

exploration

and

development

Office—1818

Beverly Way, Las Vegas, Nev.
—First Western Securities, same city.

expenses

Underwrite?

Uranium Corp., Ely, Nev.
(letter of notification) 2,000,000 shares of com¬
mon stock
(par one cent). Price — 15 cents per share.
Proceeds—For mining expenses.
Office—280 Aultman
St., Ely, Nev. Underwriter—Bristol Securities Co., Fall
River, Mass.
17

Van

Norman

and

10-year

Pro¬

shares

by

of

mon

Springfield,

warrants

to

purchase

stock

stock

(par $2.50)

124,667

additional

stock, being offered for subscription
stockholders in units of one share of com¬

and

one

share

for

warrant

each

for

three

the

shares

purchase
held

P. O. Box

nium

648, Moab, Utah. Underwriter—Security Ura¬
Service, K. O. V. O. Bldg., Provo, Utah.

Woman's
Jan.

28

filed

market.

Income

500,000

Fund, Inc., Baltimore, Md.
shares of capital stock.

Proceeds—For

investment.

Price—At

Underwriter—In¬

Managers Inc., New York, which is under the di¬
rection of its President, Pierre A.
DuVal, of DuVal's

Consensus Inc.
Woodland Oil & Gas

on

of

one

March

Co., Inc.

Dec. 21

(letter of notification) 299,900 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For equipment, drilling expenses and working
capital.

stock

Office—42

Mass.

common

common

common

additional

Co.,

124,667 shares of

'

come

Vada

High

/

notification) 20,310 shares of

Price

Dec. 30 (regulation "D") 300,000 shares of common stock

costs.

Corp.
Feb. 7 (letter of
notification) 1,188,000 shares of com¬
mon
stock (par one cent).
Price—25 cents per share.
Proceeds—For mining expenses. Office—701 Ernest and
Cranmer Building, Denver
2, Colo. Underwriter—Car¬
roll, Kirchner & Jaquith, Inc., same city.

•

Wil¬

share.

incident to mining operations. Ad¬
289, Wallace, Idaho. Underwriter—AlTeske, d/b/a Wallace Brokerage Co., Samuela
Hotel, Wallace, Idaho.

city.

same

three

Canadian

Feb. 28 filed

com¬

200,000

per

ceeds—For expenses

den

Inc., Hollywood, Calif.

shares

will be made

Jan.

Thunderbird Uranium Co., Reno, Nev.
Aug. 3 (letter of notification) 1,800,000 shares of com-'
m.on stock
(par 10 cents). Price
15 cents per share
Proceeds—For mining activities. Office—206 N.

Price—$1.25

dress—P. O. Box

Office—430

—

Antonio, Tex.

notification)

Vulcan-Uranium Mines, Inc., Wallace, Idaho
15 (letter of notification) 1,500,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬

Price—$400 per unit/ Proceeds—For purchase of
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales

(par 10 cents).

mining,

Christi, Tex.

development

filed 30,000 shares of preferred stock

fice—420
com¬

Price—$1 per share. Proceeds
exploration and development expenses
working capital. Office—823 Wilson Bldg., Corpus

—For
and

12

and

Judge Bldg., Salt Lake City, Utah.

^ Uranium

filed

of

Oct.

—Wallace Brokerage Co., same
city.

all of New York.

New

Underwriter—None.

Uranium

Securities

(no par).

machine.

shares.

(4/6)

Halsey, Stuart & Co. Inc.,

and

machinery,, equipment and general corporate purposes.
Business—To develop an electronic coin operated golf

development costs. Of¬
Bldg., Salt Lake City, Utah. Un¬

writer—James E. Reed Co.,

of

debentures, due April 1,
1975. Price—To be supplied by amendment. Proceeds—
To repay outstanding short-term notes and for new con¬

Boston

^Victor Development Co.
stock

share). Proceeds — For
cost of Driller Boy (drilling equipment which
company
rents out), and working
capital. Office—c/o Edwin J.
Dotson, attorney-at-law, Simon Bldg., 230 Fremont St.,
Las Vegas, Nev.
Underwriter—Robert B. Fisher In¬
vestments, 510 South Fifth St., Las Vegas, Nev.

stock

Underwriter

Corp.

(letter

March 17 (letter of

Uranium, Inc., Salt Lake City, Utah.
(letter of notification) 15,000,000 shares of com- /
stock (par one cent). Price—Two cents
per share.

stock.

Oct. 7

mon

Underwriter—Dempsey-Tegeler &

Uintah

of
com¬

Curtis,

in¬

by

Oct. 5

cumulative

Tacony Uranium Corp., Denver, Colo.
Aug. 17 (letter of notification) 1,700,000 shares of

&

share.

per

held

note

shares of
Proceeds
Office—1416 Chestnut
Ave., Hillside, N. J. Underwriter—None.

derwriter—Western Securities Corp., the same city.

America

Building, Dallas,
Securities Corp., Salt

Price—$14
and

—For general corporate purposes.

Proceeds—For exploration and

covered

Sytro Uranium Mining Co., Inc., Dallas, Texas
Sept. 9 (letter of notification) 2,975,000 shares of com¬
mon stock (par five
cents). Price—10 cents per share.
Proceeds—For exploration and development of
proper¬

10

Class A stock (par $1).

Co.; and for

Ucolo Uranium Co., Salt Lake City, Utah
Sept. 13 (letter of notification) 2,800,000 shares of com¬
mon stock
(par one cent). Price — 10 cents per share.

Proceeds—For

exploration and development expenses.
Office—Newhouse Bldg., Salt Lake City, Utah. Under¬
writer—Guss & Mednick Co., same city.

loans

and for working capital.

Webber, Jackson

Vandersee
March

interest

Mo.

fice—906 Walker Bank

bank

York.

Uranium Corp.
(letter of notification) 2,990,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For exploration and development costs.
Office
—358 S. 3rd St. East, Salt Lake City, Utah. Underwriter
—Western Securities Corp., same city.
-

and

Superior Uranium Co., Las Vegas, Nev.

one-half

April 7.

on

reduce

company,

—Paine,

1

March

Sept. 1

purchase

to

rights to expire

Proceeds—To
surance

Trans-Continental

Oct.

(par 10 cents).

and

common

in parking area presently leased from Gira

debentures

I

improvements;

Proceeds

Park Racing Association,

filed

debentures due

21;

stock

(par $1),
publicly. Price
—To be supplied by amendment.
Proceeds—For pre¬
payment of rentals; $46,000 to retire outstanding $10 par
preferred stock; to purchase substantially all of the as¬
sets
of
Standard
Electronics
Manufacturing Co.; for
leasehold

Nev.

Sun

153,500 shares of

which 139,500 shares are to be offered

of

E.

Broadway, New York, N. Y.
Co., Inc., same address.

Underwriter—

M. North

+ Woodward & Lothrop,

Inc., Washington,

D. C.

March 18 filed 30,000 shares of common stock
Price

—

reduction

To

of

be

supplied by amendment.

bank

loans

writer—Alex. Brown

&

(par $10).
Proceeds—For

and working capital.
Sons, Baltimore, Md.

Under¬

Number 5414

Volume 181

World

Uranium

.

.

.

The Commercial and Financial Chronicle

ceeds—For

Mining Corp.

July 21 (letter of notification) 9,996,000 shares of com¬
mon
stock
(par one cent).
Price — Three cents pel
share. Proceeds—For exploration and development ex¬
Office—323

penses.

Newhouse

Salt Lake City,

bldg.,

Underwriter—P. G. Christopulos & Co., same city.

Utah.

shares).

March 8 it

basis

Southern

and Salomon Bros. & Hutzler
& Co. Inc.; Blyth &

The

—

First

Boston

there

will

stock

common

be

debenture

no

National

approving a
of 200,000 shares

holders

of capital
the basis of two

on

shares

held.

Price—$30

stock

(par

share.

per

$10)

shares

new

for

to

stock¬

each

—To

Feb. 21

Weld

and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Union Securities Corp., Equitable Securi¬
ties Corp. and Drexel & Co. (jointly); The First Boston
Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.;
Blyth & Co., Inc. and Kidder,. Peabody & Co. (jointly).
Bids—Expected to be received up to 11 a..m. (EST) on
May 24. Registration—Scheduled for April 27.
bank

repay

the

be available for acquisition of any
business, increased
working capital, plant expansion or exchange of shares
in other companies. Underwriter
Previous financing
handled by Hornblower & Weeks and associates.

Radio

it

Alleghany Corp.

>

1,367,440
ible preferred stock (par $10) in
standing 136,744 shares of 5%%
stock, series A (par $100) on the
6%

5^%

stock for each

j.

17,

construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
For last equity financing were The First Boston
Corp.
and Glore, Forgan & Co.

Kammermiil
was

the

directors approved a

additional

738,743
each

for

shares

shares

for

early

held.

in

of

the basis of

on

The

June.

Consolidated

Uranium

one

offering

is

new

increasing the debt authority to $20,000,000.
writer—A. G. Becker & Co. (Inc.), Chicago, 111.
•

sell

$2

was

announced company plans to issue and

149,500 shares of common

stock

(par 25 cents)

at

share through S. D. Fuller & Co., New York.
net
proceeds are to be used for expansion and

per

The
work

Underwriter—None.

first

to

approved the proposed issuance
$1,500,000 convertible debentures due 1965,

of

preferred and

Feb.

voted

recommend

to

to

stockholders

issue of not to exceed $650,000,000 convertible debentures at their annual meeting to

be

held

April

on

20.

would receive rights to

When issued, each stockholder
purchase the debentures in pro¬

portion to his holdings of stock (probably on the basis
$100 of debentures for each eight shares of stock
held). Underwriter—Nor^e.

of

•

21

vote

that they authorize a new

1

Jersey City, N. J. Registration—Expected late in March.
Detroit Edison Co.

directors

16

on

55,000 shares of common stock and 35,000 shares
of $10 par preferred stock. Price—About $11 per com¬
mon share and $10 preferred share. Underwriter—John¬
son,

Doman

ICC exemption from competi¬
tive bidding of up to $345,000,000 of new securities. Pro¬
ceeds—For refunding. Underwriter—Feb. 16, Howard E.
Simpson, President, announced Glore, Forgan & Co.,
Halsey, Stuart & Co. Inc. and Alex. Brown & Sons have
been engaged to continue studies and formulate plans
looking towards a simplification of the railroad's debt

holders voted

March

7

it

was

reported

additional shares of
holders
&

a

company

common

plans to offer 22,688

stock (no par) to its stock¬

l-for-8 basis.

June.

,

Central
Dec.

Maine

underwriting.

First Western

28

7

it

have

expire

given

shares

one

on

Bank & Trust

announced

was

been

additional

of

of

record

for

March 28.

each

six shares

Price—$40

per

held; rights

share.

to

purchase

Proceeds

it

31

reported

was

on

l-for-10

a

Florida
Dec. 31 it

Power

company

plans to offer to its

basis in

May

&

Co.

or

common

June 1955. Under¬

and

Merrill

Lynch,

Corp.

reported company may issue and sell late
in 1955 about $10,000,000 of first mortgage bonds. Under¬
writers

was

To

—

be

determined

bidders:

Probable

Power Co.

(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
Kidder, Peabody & Co. (jointly).

and

Ford

Motor

15 it

Halsey,

by

Stuart

competitive bidding.
& Co. Inc.; Kidder,

& Co.; and The First Boston

Co.,

Detroit,

Mich.

reported that following

a probable 10offering of approximately 4,000,000
new shares will be made to the public.
Price—Expected
to be around $60 per share.
Proceeds — To the Ford

for-1

was

stock split, an

Offering—Probably in June.

General Telephone Co. of California
Dec.

15

sion

Feb.

Underwriter—None.

1

it

and sell

share.

Uranium, Inc.

announced

was

150,000 shares of

that

company

common

plans

stock.

to

issue

Price—$2 per

Proceeds—For exploration

and development ex¬
Underwriters—James Anthony Securities Corp.,
New York; Lawrence A. Hays Co.,
Rochester, N. Y.;
and Ned J. Bowman Co., Salt Lake City, Utah. Offering
—Probably in April.
penses.

Illinois

Central

Jan. 26 it

was

Telephone Co.

reported

company plans to sell in Illinois
only, 15,000 shares of 5lk % cumulative preferred stock.
Price—At par
($50 per share).
Underwriter—Central
Republic Co. (Inc.), Chicago, 111.

Industrial
Feb. 21 it
common

Raw

Materials

Corp.,

New,York

reported that offering of 125,000 shares of
stock is soon expected.
Proceeds—To selling
was

stockholders.

Office—575

Madison

Ave., New York 22,
Baruch
Brothers & Co.; and Hallowell, Sulzberger
Co.
N.

Y.

Underwriters—Milton

D.

Blauner & Co.;

Iowa

Public

Service

Co.

Feb. 28 directors authorized officers to sell
tional shares of
holders

on

Proceeds

a

common

Price—To be named late!?

rata basis.

pro

For

270,220 addi¬

stock (par $5) to common stock¬

construction

program.
Underwriter
Offering—No definite date has been set.

None.

—

—

was reported company plans to issue and sell
$12,000,000 first mortgage bonds. Proceeds — To repay

bank

loans and

for

new

construction.

Underwriter—To

be determined by competitive

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blair & Co. Incorporated; Leh¬
man Brothers; Union Securities
Corp., Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Beana
(jointly); White, Weld & Co.; Kidder, Peabody & Co.
Offering—Expected before the end of June.

Jersey Central Power & Light Co.
Feb. 21

it

was

reported company plans to sell $5,000,009
Proceeds—For construction program.

of preferred stock.

applied to California P. U. Commis¬
authority to issue and sell 200,000 shares of
4y2% preferred stock (par $20).
Proceeds—To re?ay
bank loans and for expansion program.
Underwriters—
company

May be Paine, Webber, Jackson & Curtis; Stone & Web¬
ster Securities Corp.; and Mitchum, Jones & Templeton.

Chicago Corp.
plans to offer to its

Georgia Power Co.

stockholders the right to subscribe for one new
share of common stock for each five shares held. Stock¬

Dec.

holders will vote April 29 on increasing authorized com¬
mon
stock from 4,000,000 to 5,000,000 shares.
Price—

ceeds—To

shortly before offering is made. Pro¬

30

it

retire

bank

company

loans

and

for

construction

pro¬

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

gram.

Maine Central

March

22

petitive

it

was

RR.
announced

ICC

bidding requirement

had

the

dropped its

com¬

of
23-year first mortgage collateral bonaa
approximately $1,400,009
of 5% first mortgage divisional bonds which were sold
in 1952 through Blair & Co. Incorporated, New
York, aiwir
$1,700,000 of

on

proposed

sale

new

due 1978. Proceeds—To redeem

Coffin

(5/10)

announced

plans to Issue and
sell $12,000,000 of first mortgage bonds due 1985. Pro¬
was

Keystone Wholesale Hardware Co., Atlanta, Ga.
was stated that the company plans at a later
date to offer additional shares for sale nationally.
An
offering of 16,666 shares of common stock is presently
being made to residents of Georgia only at $3 per share.
Office—517 Stephens St., S.W., Atlanta, Ga.
Jan. 27 it

•

for

common




com¬

Pierce, Fenner & Beane and White, Weld & Co. (joint¬
ly); Glore, Forgan & Co. Offering — Expected before
July 1.

Foundation.

Chesapeake & Ohio Ry.
Sept. 29 it was reported company plans to issue and
Bell $40,000,000 of new bonds.
Proceeds—To refund its
outstanding $37,851,000 3"%% bonds and $2,441,000 4%
bonds. Underwriter—May be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.

To be determined

increase the

Underwriter—To be determined by competitive bidding.
Probable bidders: The First Boston Corp.; Merrill
Lynch,

March

announced company

vote to

to

(jointly); Glore, Forgan

—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin & Burr, Inc.

was

Machinery Co.
were

Jersey Central Power & Light Co.

stockholders about 232,000 additional shares of
stock

or

Feb. 21 it

Florida Power Corp.

Dec.

Special

Horseshoe Bend

unsubscribed shares.

any

Offering—Expected in May

Feb.

right to subscribe for 300,000
capital stock (par $12.50) on the

Corp.

it

of

Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Lehman Brothers and Blyth & Co., Inc.

31, W. F. Wyman, President, stated that company

14

rate

by 25,000 shares to 62,500 shares (par $20),
additional stock probably to be offered to stock¬

the

the

share

new

Co., San Francisco.

stockholders

increase capital and surplus.
Underwriter—None.
Tranamerica Corp., the majority stockholder, has offered

plans to issue and sell some additional common stock
par $10 (probably to stockholders) in the latter part of
1955. Proceeds—For construction program. Underwriter

Feb.

at

stock

mon

Waters, President, announced stock¬

authorized capital stock from
1,000,000 shares to 3,000,000 shares in anticipation- of
expansion of the company's activities.
UnderwriterPrevious financing handled by Greene & Co., New York.

March

Hartford

increase

Co.

Underwriter—Smith, Ramsay
Co., Inc., Bridgeport, Conn. Offering — Expected in
on

to

writers:
Kidder, Peabody
Pierce, Fenner & Beane.

reduction in over-all interest costs.

Hydraulic

Bridgeport

was

—To

Feb. 10 company received

a

debentures

Helicopters, Inc.

Feb. 17 Donald S. B.

to

Baltimore & Ohio RR.

Previous offer of convertible

made to stockholders without

basis of

Lane, Space & Co., Savannah, Ga.

structure and

it was announced stockholders on May 2 will
authorizing about $60,000,000 of convertible de¬

bentures.

Augusta Newspapers, Inc., Augusta, Ga. (5/2)
Feb. 28 it was reported company may offer and sell
about

stockholders

common

1955.

Feb. 24 stockholders

Mines, Inc.

stockholders authorized the issuance and sale
$6,000,000 convertible debenture bonds
in connection with the acquisition of Uranium Mines oi
America, Inc. stock. Public offering of $2,000,000 bond*
expected early in 1955. Underwriter — Tellier & Co.,

Jan.

Telephone & Telegraph Co.

Under¬

stockholders

15

sale

and

holders.

of not to exceed

capital.

American

May 10

Hartford Gas Co.

March

share

tentatively

Proceeds—Principally to

outstanding bank loans.

repay

Dealer-

10

plan for offering up
capital stock for sub¬

July 23
March 18 it

an¬

Paper Co.

announced stockholders will vote

June,

17

scheduled

(4/1)

...

King, Libaire, Stout & Co., New York,
previous financing.

held. Underwriter—None.

to

cumulative preferred
basis of ten shares of

Mo.

;

v

writer—Eisele &

it Consolidated Natural Gas Co.

scription by stockholders

Alloys Corp., Kansas City,

'

-

$25 principal amount of debentures for each three shares

Manager—Kidder, Peabody & Co., New York.
American

some

Corp.
L. Alberty, Executive Vice-President,

D.

handled

new

about

shares of 6% convert¬
exchange for the out¬

preferred share held.

do

may

on

Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next
financing.
cost

company

nounced that the company will have another stock issue
in the near future.
Proceeds—For expansion.
Under¬

(par
Underwriters—Kidder, Peabody & Co. and White,
& Co., both of New York.

Proceeds—For

that

Gulf Cities Gas

Feb. 25 it

will

reported

was

financing in connection with acquisition of Gasinator
Mfg. Co., Cleveland, O. Underwriter—Straus, Blosser &
McDowell, Chicago, 111.

Jan.

Co.

reported company plans to issue and sell

was

Manufacturing Co.
it

3

March

Feb. 10 company offered

to

common
stock
(par $2) from
(360,000 shares outstanding) to 750,000
shares, in order to have additional shares which would

in¬

Commonwealth Edison Co.

loans

proposal

authorized

shares

seven

Proceeds—To

about 100,000 shares of convertible preferred stock

and

increase

400,000

Given

capital and surplus.

Collins

plans to issue

Giddings & Lewis Machine Tool Co.
15,
the
stockholders
approved
a

Feb.

March

$15,000,000 first mortgage bonds due 1985. Proceeds

self

(jointly); Harriman Ripley
Co., Inc. and Kidder, Peabody & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on May 10. Registration—Scheduled for April 13.

Bank,

Ga.

reported stockholders will vote April 12
proposed offering for a period of 30 days

was

on

$100).

company

&

Savannah,

(5/24)

Corp.; Lehman Brothers; Union Securi¬
Corp. and Equitable Securities Corp. (jointly);
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Shields & Co.
ties

—

Citizens

Prospective Offerings
announced

Underwriters

69

The First Boston

of 40-year income debentures. Proceeds
outstanding preferred stock (about 620,-

share-for-share

a

crease

was

Co.,

sale.

July 12 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share.
Proceeds—
For mining operations.
Underwriter—Sheehan & Co.,
Boston, Mass.

it

&

Jan. 11, J. D. Farrington, President, announced that the
directors have authorized the issue and sale of not more

on

Zenith Uranium & Mining Corp.

30

Forgan

preferred stock convert their shares into

Wyoming Uranium Corp., Salt Lake City, Utah

Dec.

Glore,

Corp.;
Blyth & Co., Inc.; Glore, Forgan & Co.; and the Union
Securities Corp.
Exemption from the competitive bid¬
ding rule was received on Feb. 17. If all holders of

Aug. 23 (letter of notification) 9,166,667 shares of com¬
mon stock
(par 1 cent). Price—Three cents per share.
Proceeds—For exploration and development expenses.
Underwriter—James E. Reed Co., Salt Lake City, Utah.

Co.

be

Chicago, Rock Island & Pacific RR.

000

2111 Nicholas St., Omaha, Neb.

Power

May

—

Chicago., 111.

—To redeem the

Feb. 16 (letter of notification) 250,000 shares of common
stock.
Price—$1 per share. Proceeds—To pay current
bills and purchase equipment and supplies. Underwriter

Alabama

construction and general corporate pur¬

new

Underwriter

poses.

than $65,000,000

Wyoming Minerals Corp., Thermopolis, Wyo.

-—H. P. Jesperson,

(1433)

&

Burr, Inc., Boston, Mass.

Maine Central RR.
Feb.
not

14, E. Spencer Miller, President, said

given

up

company has
the idea of refunding the $17,000,000 5%%

Continued

on

page

70

\

70

^e Commercial and Financial Chronicle

(1434)

Continued, jrom page

curities
i

'

4-

1

mortgage and collateral trust bonds due 1978.
bidders for new bonds may include Halsey,

first

Probable

Kidder, Peabody & Co.; W. C. Langley

Stuart & Co. Inc.;

& Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
&

Majestic Auto Club, Inc.

_

Aug. 25 it was announced company plans to offer 500,000 shares (par five cents) to the motorist and general

public shortly after completion of the current offering
of 100,000 shares to service station owners and operator!.
Office—Room 717, 141 Broadway, New York 6, N. Y.

expected to be received in April for an issue or

are

Hutzler; Blair & Co. Incorporated;

&

1956-1970.

Co. Inc.; Salomon

Stuart &

Halsey,

bidders:

Probable

certificates due

trust

equipment

$3,765,000

Kidder, Pea-

body & Co.

Co.

Service

Public

Missouri

stockholders will vote
March 12
on
increasing common stock from 530,000
shares to 2,000,000 shares to provide for a 3-for-l splitup, and additional stock for future
issuance. Under¬
writer—May be Kidder, Peabody & Co., New York.
14 it was reported

Feb.

Feb.

it

8

vote

April 12

proposal to increase the authorized limit of
to $20,000,000. Proceeds—

indebtedness from $3,000,000

For expansion program. Underwriter — Merrill Lynch,
fBerce, Fenner & Beane, New York, handled preferred
stock financing in 1942.
J.

'

'

"

.

'•

-

..

.

—

■

\

'

it

23

for the sale

also

and

a

is. negotiating
of 250,000 shares of common stock (par $1)
second series of debentures in the aggre¬
corporation

announced

was

of $7,000,000.
Proceeds —To retire bank
loans, for expansion program and working capital. Un¬
derwriters—For debentures, Halsey, Stuart & Co. Inc.
amount

gate

Van

and

Alstyne, Noel &

Co.; for stock, Van Alstyne,

Feb.

4

Orleans
it

issue

to

it was

$9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston

Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Inc.

Feb. 21

it

announced that company plans this year

was

first

some

mortgage

$7,500,000 of preferred stock later this year. Pro¬
construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley &
ceeds—For

Co. Inc.

.People's

Finance Corp., Denver, Colo.
Jan. 31 it was reported company plans to issue and sell
about $500,000 of 6% convertible preferred stock.
Pro¬
ceeds—For expansion.

Underwriter—Paul C. Kimball &

company is
with the SEC

ments

mission

for

ceeds—To

the

an¬

planning to file registration state¬
and the Pennsylvania P. U. Com¬

issuance

of $50,000,000 of bonds.
Pro¬
$30,000,000 of 3%% bonds presently
to help finance construction program.

redeem

Corp.; Morgan Stanley & Co. and Drexel & Co.

(jointly); Kuhn, Loeb & Co. and Union Securities Corp.
(jointly); White, Weld & Co. Bids—Tentatively expect¬
ed to be received up to 11 a.m.

(EST)

on

April 25.

bonds

due

Under¬

1985.

May 1,
Philadelphia, Pa.

1955.

on

Underwriter

—

Drexel &

Co.,

by competitive bidding. Prob¬

& Co. Incorporated; The First Boston Corp.;
Securities Corp. and Union Securities Corp.
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
Co.; Blair
Equitable
(jointly);
(jointly);

York, Chicago & St. Louis RR. (5/10)
expected to be received by the company on

Inc.; Salomon Bros. & Hutzler; Kidder, Peabody &

Co.; Blair & Co. Incorporated.

sell

Service

Co.

of

Oklahoma

reported that company plans to issue and
100,000 shares of new preferred stock (par $100).

Underwriter—To be determined by competitive bidding.
Probable bidders:
Harriman Ripley &
Co. Inc. and
Central

Co.

Inc.

(jointly); Smith, Barney &
Co.; Kuhn, Loeb & Co.; Glore, Forgan & Co. Offering—
Expected in May or June, 1955.
Republic

ic Pyramid Electric Co., Jersey City, N. J.
18 it was announced company plans to issue and
sell
75,000 shares of 5% convertible preferred stock
(par $10) through S. D. Fuller & Co., New York. The

March

net

New York

Telephone Co.
17, Keith S. McHugh, President, announced that
the company will have to raise more than $100,000,000
of new capital money to aid in carrying out its expan¬
sion
and
improvement program which will cost ap¬
proximately $200,000,000. Underwriter—For and bonds,
to
be
determined by competitive
bidding.
Probable
bidders: Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.

that based upon the assumptions that he was making he
believed that the remainder of the financing would be

accomplished
ferred

March

4.

proceeds

are

28

to be used for expansion and work¬

Receptor Co., Inc.
was
reported that

expected
which
pany

of

100,000 shares will

a

be sold for account of

and 150,000 shares for selling stockholders.

writer—Bache &

com¬

stock to

and

Dec.

it

17

stock

Gas

Penn

Southern California

announced

was

420,000

shares

of

common

will soon be offered to public. Price—
To be named later. Proceeds—To The Post Publishing
(par $5)

Co., publisher of The Boston Post.
man, Dillon & Co., New York.
Northwest

Nitro-Chemicals,

Underwriter—East¬

common

Ltd.,

stock to finance its

Alberta,

Can.

proposed chemical

project. Underwriter—Eastman, Dillon & Co., New York.
Northwest
Feb.

7

it

Plastics,

Inc.

plans to issue and sell
stock, plus 8,316
shares reserved for conversion of outstanding debentures
which may soon be called for redemption. Underwriters
—May be Irving J. Rice & Co., St. Paul, Minn.; and M.
H. Bishop & Co., Minneapolis^ Minn.
in

reported

was

future 17,500

near

Northern

Indiana

company

shares of

Public

common

Service

Co.

Jan.

12, D. H. Mitchell, President, announced that the
company plans
to raise approximately $12,000,000 of
new money
(which may be done through sale of pre¬
ferred

and/or

common

stock). Underwriters—Probably
Central Republic Co. (Inc.), Blyth & Co., Inc.; and
Merrill Lynch, Pierce, Fenner & Beane.
Ohio
Feb.

24

Edison
it

Co.

(5/17)

reported company plans issue and sale
of $30,000,000 of first
mortgage bonds due 1985. Under¬
was

writer— To

%

be

determined

by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co., White, Weld & Co.
and Union Securities Corp.
(jointly); The First Boston
Corp. Bids—Expected to be received on May 17. RegisYration—Scheduled for April 26.
Oklahoma
Feb. 23 it

was

Gas

&

Electric

been

filed

emption

was

of

reported
first

$15,000,000 of first mortgage bonds later this

year.

Under¬

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Inc., Equitable Se¬

F.

25

with

from

California

competitive

bonds.

P.

U.

Application

Commission

bidding.

Bids

has

for

ex¬

received

on

Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.

and President, an¬
plans to offer publicly 1,346,800
shares of capital stock through an underwriting group.
Offering—Planned for early in May.
Underwriters—
Blyth & Co., Inc., and Dean Witter Co.
that

nounced

Dec.

30

it

Co.

(11/9)

announced

Tom

P.

was

company

investment in additional stock of
Underwriter—To

be

determined

subsidiary companies.
by

competitive

bid¬

ding. Probable bidders: The First Boston Corp., Ladenburg, Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Wertheim & Co.
(jointly); Blyth & Co., Inc., Bear,
Stearns &

Co.

and

Dean Witter

& Co.

(jointly); Union

Securities Corp. and Equitable Securities Corp. (jointly);
Lehman Brothers; Morgan Stanley & Co.;
Kidder, Pea¬

body & Co., and Merrill Lynch, Pierce, Fenner & Beane.
Bids—Tentatively scheduled for Nov. 9. Registration—
Not expected until Oct. 12.

it

Pipe

Line

Corp.

Stone & Webster Securities Corp.
United

March
26

Aircraft

it

14

vote

was

Corp.

announced

approving

on

a

stockholders will

new

preference stock (par $100).

on
April
issue of 500,000 shares of
Proceeds—To redeem pres¬

cumulative preferred stock (233,500 shares out¬
standing), and for working capital. Underwriter—Har¬
riman Ripley & Co., Inc., New York.
United
Feb.

Gas

Corp.

N. C. McGowen, President, announced that
corporation plans to raise $35,000,000 to $40,000,000 in
the first half of 1955 through the sale of additional com¬
24,

stock

stockholders.

to

program of
a

subsidiary.
United

Proceeds—For

construction

and of United Gas Pipe Line Co.,
Underwriter—None.

company

Gas

Corp.
McGowen, President, stated that com¬
pany might
be doing some debt financing, with this
year's total financing program reaching about $50,000,000 (including about $35,000,000 to
$40,000,000 of com¬
mon
stock). Underwriter—To be determined by com¬
Feb.

24,

N.

C.

petitive

bidding. Probable bidders: Halsey, Stuart &
The First Boston Corp.; Morgan Stanley &
Co.; White, Weld & Co. and Equitable Securities Corp.
(jointly); Harriman Ripley & Co. Inc. and Goldman,

Co.

Inc.;

Sachs

& Co.

(jointly).
Queen Uranium Co.

reported company plans to issue and sell
720,000 shares of common stock. Price—Expected to be
was

$2.50 per share.
New York.

19 it

was

ture..

Underwriter—Van Alstyne, Noel & Co.,

(6/7)

reported company plans to issue and sell

first

of

Underwriter

mortgage
To

be

bonds

in

the

if Wabash
will

RR.
be

(4/5)

by the company up to noon
April 5, at 44 Wall Street, New York 5, N. Y.,
purchase from it of $1,530,000 equipment trust
certificates, series F, to be dated May 1, 1955, and to
for

on

the

mature

in

15

annual

installments from May 1,
Probable bidders:

May 1, 1970, both inclusive.
Stuart

&

Co.

Inc.;

Salomon

Bros.

Halsey,

Hutzler; Kidder,
Peabody & Co.; Blair & Co. Incorporated.

Washington Steel Co., Washington, Pa.
March
28

1

it

announced

was

approving

on

stockholders will vote April

issue of 30,000 shares of cumulative
stock (par $50).
Proceeds—For
expansion program and working capital. Underwriter—
convertible

an

preferred

Probably Singer, Deane & Scribner, Pittsburgh, Pa.
March

15

it

Union
was

Telegraph Co.

announced

that consideration

tion program. Underwriters—To be determined by com¬

of the company's stock and the issuance of

petitive bididng. Probable bidders: White, Weld & Co.
and Kidder, Peabody & Co. (jointly); Lehman Brothers;

1,580,000

Lynch, Pierce, Fenner & Beane and Union
Corp. (jointly); W. C. Langley & Co.; Harri¬
Ripley & Co. Inc. Offering—Expected in April or
May, 1955.

1956 to

&

holders will vote April 13

Merrill

fu¬

received

reported company is planning to Issue
aftd sell $6,000,000 of cumulative preferred stock (par
$100). Proceeds—To prepay bank loans and for construc¬
was

near

determined

by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Union Securities Corp.; Stone & Webster Securities
Corp.; Kuhn, Loeb & Co.: Salomon Bros. & Hutzler;
White, Weld & Co. Bids—Expected June 7.
—

tive

Western

Southwestern Gas & Electric Co.
17

Gas

Walker, President, announced that the

1955 and replacement of bank
borrowings made in 1954 wil require financing during
1955 of about $85,000,000. It is planned to offer
publicly
in April,
$15,000,000 of preferred stock.
About $50,000,000 of bonds will be sold later this year (may be
done privately). Underwriter—White, Weld & Co. and

(EST)

plans to Issue and
sell to the public 500,000 additional shares of common
stock (par $5). Proceeds—To repay bank loans and for

Jan.

company

construction program for

Bids

Southern

&

Corp.
Belgrano, Chairman

N.

$25,000,000
plans to issue and sell

company

mortgage

Stanley

Transamerica

Virgina Electric & Power Co.

Gas Co.

given to the issuance
mon

stock

offered

through

of

an

some

offering to stockholders.
on

is

being

additional shares of

approving

a

com¬

Stock¬

4-for-l split
an

additional

shares, part of which are expected to be
aforesaid, but no definite financing plans

new
as

have been formulated.

Securities

man

Texas Eastern Transmission Corp.

Co.

reported company plans to issue and sell




$40,000,000

Proceeds—For expansion

Underwriter—Morgan

Under¬

last sale of bonds were from

March 4 company plans to issue and sell publicly deben¬
tures and

Feb. 28 it

stockholders.

common

working capital.

Feb.

Co.

pre¬

Co., New York,

Co., New York.

IK

North

and

if Texas Instruments, Inc.
March 21 J. Erik Jonsson, President, announced stock¬
holders will vote April 20 on authorizing the creation of
an issue of 300,000 shares of cumulative preferred stock
(par $25), of which it is planned to publicly offer about
160,000 shares to be known as convertible preferred

Feb. 21 it

public offering is soon
shares of common stock, of

250,000

about

debentures

Underwriter—Dillon, Read & Co., Inc., New

Vanadium
it

of

issuance

York.

ing capital.
Radio

the

(he did not assume the sale oi any cornman stock). Plans for the possible issuance 6i new secu¬
rities are not at all definite as yet, it was announced on

Jan.

Feb.

by

stocks

was

are

May 10 for the purchase from it of $4,080,000 equipment
trust certificates.
Probable bidders: Halsey, Stuart &

new

mon

Public

gas

possible

was

ent 5%

Philadelphia Transportation Co.

mature

it

Transcontinental

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston

facilities is launched. He indi¬
that $40,000,000 of that as¬
$85,000|/,000 new financing might be in the form of
first mortgage bonds, (to be placed privately), and

Nov. 24

Philadelphia Electric Co. (4/25)
March 9 H. P. Liversidge, Chairman of the
Board,

Thursday, March 24, 1955

sumed

Offering—Expected in April.

nounced

natural

new

that

Feb.

Nov. 11 it

Co.

Co.

sale of

Stuart & Co. Inc.; White, Weld &

able bidders: Halsey,

New

Electric

reported company proposes issuance and

was

11 it was announced that the company plans to
refinance the outstanding $10,000,000 Market Street Ele¬
vated Passenger Ry. Co. first mortgage 4% bonds which

Inc.

Service

Public

writer—To be determined

Bids

reported company plans to issue and sell

March

Noel & Co.

New

15

later this year

outstanding and

ic National Container Corp.
March

Feb.

Co., Chicago, 111.

McKeesport, Pa.

announced stockholders will on

was
a

on

company

Co.,

C.)

(G.

Murphy

Pennsylvania Electric Co.

Pennsylvania

Pacific RR.

Missouri

Bros.

cated

Corp.; Merrill Lynch, Pierce, Fenner & Beane
White, Weld & Co. (jointly); Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston Corp.;
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc. and
Union Securities Corp. (jointly); Smith, Barney & Co.

Coffin

Co.;

Bids

of the

and

69

,t

...

Jan. 12, George T. Naff,

President, referred to the pos¬
sibility of some $85,000,000 in new financing when and
if the company's current application for the reconver¬
sion of the Little Big Inch pipeline and the construction

Westpan Hydrocarbon Co.
Dec.

11

it

was

(4/15)

reported Sinclair Oil Corp. will ask for

bids for 384,861 shares of Westpan stock about April

15,
1955, if it has not been able to dispose of these holding!
Underwriter—Union Securities Corp.,
New York, underwrote recent sale of Sinclair's holding!
of Colorado Interstate Gas Co. White, Weld &
Co., New
York, may be included among the bidders.
before that date.

181

Volume

Number 5414

.

.

The

.

Commercial and Financial Chronicle

Continued from page 8

(1435)

Continued from page 2

.Dealer-Broker Investment

The
abroad.

Recommendations & Literature
Seaboard Air

Line

Cummings,

Railroad

Air

Seaboard

Secretary,

Line

f

000

Co.—Analysis—Standard Investing Cor¬
poration, 40 Exchange Place, New York 5, N. Y, Also avail¬
able is an analysis of R. C. Allen Business IVfachines, Inc.

Seneca Falls Machine

Sinclair

Oil

report—Sinclftir
New York 20,
N.|Y.
Co.
Analysis —Jlra

Corporation—Annual

poration, 600 Fifth Avenue,
Southwestern Electric Service

Oil

Power

&

on

on

Standard

Also

a

'

pf

States

Natural

Gas

Corp.

Sun

on

and

data

Co.

St.

Marie,

Northern Pacific, Chicago,
Chicago & Northwestern.

and

Tilo

Roofing

Company,

Co.—Review—Reynolds

York

a

Ste.

Pacific

&

report—Tilo

Roofing

Broadway,

esses

225
are

and

East

Inc.

New York 6, N. Y.

$$

Co.

—

Trust

Louisville

Kentucky
2,

home

Labor
be

Ky.

the

was

in

is indicated

of

in

in^the fields

lending, guarantees, and insurance began with

the Federal Reserve

eral

Land

System in 1913 and the Fed¬

in

1916.

Over

the* number of agencies

years,

ties

Banks

the

past

42

instrumentali¬

or

engaged in lending, guaranteeing,

or

is

ing

insuring

The

1954.

issue

new

April 15, 1955,

on

business

on

at

April 5, 1955.
W. C.

Beck, Treasurer

low

machines

strengthening its
leadership
in
markets
temporarily lost after World War
In

into

addition,

U.

S.

dollars

and

further

of world trade restric¬

tions should
increase

tially

increasing con¬
foreign currencies

of

relaxation

to

Pacific Gas

Electric Co.

and

further

enable

its

the

company

earnings substan¬

the next few

over

ultimately

years

the

pave

and

way

DIVIDEND

NOTICE

Common Stock Dividend No. 157
The Board of Directors on March 16,
1955, declared a cash dividend for the
first quarter of the year of 55 cents per
share
upon
the Company's common
capital stock. This dividend will be
paid by check on April 15, 1955, to

of

stockholders

common

close of

business

record

at

March 28,

on

The Transfer Books will

the

1955.

be dosed.

not

K. C. Ciiristensen, Treasurer

for

San Francisco, California

higher dividends.

DIVIDEND

of

NOTICES

an

op¬

CONSOLIDATED

relations

NATURAL

GAS

PACIFIC
FINANCE CORPORATION

COMPANY
30

Rockefeller

New

York

Plaza

20, N. Y.

DIVIDEND
A

fhe
has

this

board of directors

declared

day

a

regu¬

lar

quarterly cash dividend of
Thirty-Seven and One-Half Cents
(37 x/2 ^) per share on the capi¬
tal stock of the Company, pay¬

were

pay¬

does

company

NOTICE

Dividend No. 29

the longer term.

Dividend

able

May 16, 1955, to stock¬

on

holders

of

not

record

April

the

at

15,

March

close

holders of record

April 15,

1955, was declared by the
Board of Directors on
March 15,

1955.

1955.

R. E. Palmer,

.

interim earnings re¬
ports. However, the recently re¬
juvenated management may wish
to modernize this policy toward
more
informative
and
frequent
reporting
in
the
future,
thus
recognizing the importance of its
responsibility toward greater co¬
operation in the interest of its
any

of

business

regular quarterly divi¬
dend of $1.25 per share on
the 5% Series Preferred
Stock ($100 par value) pay¬
able May 2, 1955, to stock¬

Secretary
b. c. Reynolds,

17, 1955

Secretary

FEDERAL

.

have

expanded to 104 entities (including incorpo¬

rated and

unincorporated bodies), employing about

40,000 persons.
"The extent of government
fields is indicated

operations in these

by the fact that the total loans,

guarantees, and insurance and contingent liabilities
amount

to

Federal

$244 billion

of June 30,

as

Government had

1954.

investment

an

of

about

$16.9 billion in these 104 agencies, and these
cies

are

authorized to call

on

the

The

agen¬

Treasury for about

$14.1 billion of additional funds.
*

-

*

stockholders.

FEDERAL PAPER BOARD

Singer Manufacturing is in very
sound financial and working capi¬
tal position with current assets
of $312,498,000 on Dec. 31, 1953,
including cash and Government
securities of $45,596,000 compared
with $44,138,000 current liabilities.
Book value, at the end of 1953,
stood at about $63 per share and

Common & Preferred Dividends:

net

proceeded

on

anteeing loans is
should undertake
not

or

in

agencies

the assumption that lending

will not

furtherance

a

we

have

or guar¬

only when private enterprise

on

companies
than

more

serves

ried

as

plants,

the

assets

are

Re¬
car-*

of

of

Directors

Federal

dividends:
.....

45£

share

per

Common Stock.

on

50<f per share on the 4%

Southern

Cumulative Preferred Stock.
Common stock dividends

April

15,

record

at

1955

are payable
stockholders of

to

to

the

on

Stock

4%

Cumulative

payable July 1,
stockholders of record June
are

24, 1955.

justifiable Government

a

Bogota, New Jersey

The

engaged in this sort of

RAILROAD

R0CKFISH

First

Three

Mortgage

Per

Cent

Bonds

and

Due

One-Quarter

July

1,

DIVIDEND

1960

pursue

the matter to

become

due

logical conclusion.

and

numerous.

degree

in

Dcal-ized

It is

which

Yet dissents

and

will

be

date

were

emphatic

disconcerting evidence of the

our

thinking

has

become

New

at

ITY

NATIONAL
at

the office
par

on

—

or

should

we

say

the extent to which

tion?




of

American

tradi¬

ABERDEEN

By:

Forrest

Dated:

dividend

of

share from

net

a

investment income,

trust

certificates

payable

holders of
of

record

redeemed

of

AND

Lockey,

January

per

Fund

the Trustee,

at

the

of

close

26,

ROCKFISH

RAILROAD

INCORPORATED

Vice

1955

President

per

share on the
Stock, 4.56% Con¬

cents per

vertible Series.
The above dividends

are

pay¬

able April 30, 1955, to stock¬
holders of record April 5.

Checks will be mailed from

the

Company's office in Los Ange¬
les, April 30.
share
p. c.

C/Coj/iitaf OCife

<£fn±WiancerCoin/iaitijf
^

share on the
4.48% Con¬

vertible Series;

*10 cents per

March 18, 1955.

tzifaSiac/ttrSe/h

the

on

business

BANK,

thereon.

brains have been washed

paying
cents

Life

March 25, 1955 to

redemption will
said redemption

and accrued

COMPANY

our

for

on
or
after that
the SECUR¬
Raleigh, North Caro¬
interest to redemption
date.
All such
bonds are required to be pre¬
sented
for
payment
and redemption at said
office
of
the
Trustee
on
April
1,
1955, on
which
date
interest
shall
case
to
accrue

date

lina,

its

is
26

4—3 a—7 2—89

designated
and
payable

so

cents

Preference
Massachusetts

share

per

Stock;

Preference Stock,

28V2

IS HEREBY GIVEN that, pursuant to
provisions of tne Deed of Trust dated as of
July 1, 1945, between the undersigned and the
Security National Bank of Greensboro, Raleigh,
North Carolina. Trustee, there have been drawn
by lot for redemption and it is. the intention
of the undersigned to pay and redeem on April
1, 1955, $4,000.00 principal amount of the above
described bonds, bearing Nos.

bonds

cents

Common
28

Life Fund

COMPANY
Incorporated

The

thing, but it certainly did not

STOCK

NO. 28

Board of Directors has

*60

Massachusetts
AND

the

the Federal Government is

PREFERENCE

DIVIDEND

NOTICE

suggestions tending to reduce the extent to which

STOCK

NO. 32

DIVIDEND

4.56% CONVERTIBLE SERIES

March 15, 1955

NOTICE

REDEMPTION
ABERDEEN

Organization of the Executive Branch of

The Commission proceeded to make some useful

PREFERENCE

of the
following quarterly dividends:

pur¬

the Government.

DIVIDEND NO. 181

COMMON

4.48% CONVERTIBLE SERIES
Robert A. Wallace.
Vice President and Secretary

at $58,300,000.

books

California
Company

DIVIDENDS

Preferred
1955

Edison

the close of business April 1,

1955.

Dividends

valued

are

$120,000,000.

for foreign

on

Board

Paper Board Company, Inc. has this
day declared the following quarterly

authorized the payment

can¬

pose."—A Report to the Congress by the Commis¬
sion

such

The

CO., Inc.

function which the Government

perform the function, and then only
of

ap¬

land, buildings, machinery and
equipment, as well as equities in
affiliated

*

considerations of these

our

to

came

ciated fixed assets,

at

"In

assets

current

proximately $52
per
share.
It
should be pointed out that depre¬

to

the close of

of

world

ments, which have been made
continuously since 1863, were at
an annual rate of $2.00 per share

Washed?

of

sewing

dustrial field, Singer Manufactur¬

lowest net income

share.

per

Company

American

the

over

of the

stockholders of record

higher
priced units in the home and in¬

past 15 years.
substantial improvement

Further

$3.45

"The activities of the Government

introduction

family

modernization

satisfactory^

Average 1944-1953 earnings

Are Out

With

earnings
are
estimated
around $3.00 per share compared
with
$2.52
per
share for 1953
which

the

on

Company, held
today, Friday, March 18, 1955, a divi¬
dend of $.50 cents per share was de¬
clared payable on the Common Stock

sewing

economic

and

results.

reported

Memorandum—Ae

Building,

listed

1954

,

Co.—Memorandum—Goodbody & Co., 115 Broad¬
Gas

is

Manufacturing
proc¬
steady review for

efficient

understood to

are

common

meeting of the Board of Direcof The Gamewell

im¬

modernization
and

oi

a

tors

develop¬

constant

anal¬

ucts

Louisville

fu¬

assure

shares
are

under

are

more

and

for

industrial

erative

Kentucky

the

virtually

research

program

provement

New

of Nunn-Bush Shoe Company and Safway Steel Prod¬

Company,

active

an

machines.

Corporation—Report—Loewi & Co.,
Street, Milwaukee 2, Wis. Also available

Western

for

reserve

the

Singer Manufacturing maintains

yses

way,

earnings

con¬

At

Stock Exchange.

substan¬

a

a

Company—Analysis—G. H. Walker & Co., 1 Wall

Warren Bros.

enables

period of relatively high earn¬
ings over the next few years.

Vitamin

S.

Mason

also

It

to accumulate

ture which should

Street, New York 5, N. Y.
U.

sales.

company

tial

5, N. Y.

United Fruit

stock

II.

ivianuiaciuring

Island

120

of

instalment

understate

ment

very

$6,-

preceded by $35,000,000 funded debt. The common

vertibility

—r

Co.,

profits

gross

these

on

were

ment

&

$41,000,000.

accounting policy tends
real earnings par¬
ticularly in times of large instal¬

Company, Inc., Stratford, Conn.
Trane

to

0 Saulte

Paul

Rock

Inc.—Annual

4,500,000

stock which

to

Also available is

Sheiier

and

Minneapolis,

not

of

servative

7;|

Chemical
on

Profits
are

charged off as reduc¬
tion of operating profits. This con¬

Company—Analysis-^-H. Hentz &

Co., 60 Beaver Street, New York 4, N. Y.
bulletin

conducted

sales

amounted

unrealized

sales

•

Inc.—Analysis—Dreyfus & Co., 50 Broad¬

New York 4, N. Y.

1953

appears

of

servative.

and

$8,000,000

%

Three

is

of

part

basis.

instalment

1953

Stanley Aviation Corporation—Analysis—Amott, Baker & Co.,
Incorporated, 150 Broadway, New York 38, N.Jif.
American

700,000 which

valuation

SINGER's capitalization consists

growing

business

assessed

an

priced

of

%
.

way,

Singer
Building
at
149
Broadway, New York City, alone

has

booked as such until collections
have actually been completed but
are carried in the balance sheet
as

Haupt &

Available is

Gas Co.
■

Textron

and

instalment

an

from

Cor¬

The

deferred credits which at the end

Ill Broadway, New York 6, N. Y.

Co.,

memorandum

large

SINGER's

Haupt &

—

Corp.—Memorandum—|ra

Light

sewing

made abroad.

were

A

Co., Ill Broadway, New York 6, N. Y.
Standard

home

substantially
It is interesting to note
that
approximately half of the
company's 1953 sales of $333,267,-

Railroad Com¬

Norfolk 10, Va.

pany,

of

increased

last year.

Company—Annual report—W. F.

NOTICES

Security I Like Best

Sales

machines

DIVIDEND

71

Incorporated 18 IS

Trustee

per quarter

hale,

increase.

Treasurer

T1

The Commercial and Financial Chronicle

(1436)

Thursday, March 24, 195"

...

whatever

figure

BUSINESS BUZZ

Western

is

what

to

as

Europe

committing

itself to spend

Washington,...
from the Nation'*

gJ

News stories about the Aid to

" C€»

A

Asia program speak of it

Stassen

Mr.

is not the

report

guaranteeing,
of hidden

large

REA's

subsidy which under¬

In

in these

Ad¬

Rurai Electrification

the

President

When

REA

the

created

Order

in

Roosevelt

by Executive

and Congress a

1935,

year later made
it legal, the
public propaganda was that the
whole purpose of the REA was
to give farmers electric current
i>ecause the big bad public util¬
ises were too lazy, too selfish,
or too something to provide this
boon of modern living for the

farmers.

the

.lets down

figures, the

REA

behind

.son

Commission

Hoover

'Treasury

for

advances
interest

paid

the

by

comparable

be¬

now

Treasury

loans is

term

long

on

about

3%. Interest payable by
the cooperatives and other borthe

to

j-owers

is

REA

also

a

for

or

It

the

of

certained by any reporter.

Icrcst

returns

years;

possible

in-

be

cannot

re¬

It

added

was

that

adminis¬

of REA in the late '30's,

late

the

by

Treasury,
to

amount

now

borne

and

these

complaint

a

Ilarry

$7

million per year.

In

brief,

then,

borrowers

dized rate
der the

the

Treasury

have

subsi¬

a

their money, un¬

on

law, and also must

pay

the overhead administrative

A

hit

was

element

asking

subsidy

only indirectly by the

"the

oped for
"JREA
cal

Supposed¬
plans devel¬

financial
the

borrowers

assumed

plant

that

of

the

physi¬

financed

once

the

would

require little if any
further
change and that earnings would
be

used

to

charges,"

meet

the

debt

service

Commission

ob¬

served.

The

tion

Self-Financing

principal

of the

was

that

into

a

the

once

rural

lines

job

building

accomplished

was

initially, and

of

load

as

and

con¬

recommenda¬

REA

be

structure,

and

the

on

its

secure

market.

yelp

own

plot

of

the

bad
on

careful

clearly

this

saw

mits

their

get

Electric

are

subsidy and
lose
it,
even

to

they-

not

concrete facts

just

as

bankers

so

would

tal

still

REA.

subsidy,

how¬

reorganization

a

retain

with

tax

all the

capi¬

obviously
the
capital cost of truly rural line
is
high, the beneficiaries of
REA

would

large

find

that

private

over

subsidized

has

chance
its

of

way

fore

about

has

of

Federal

sale

of

his

of

give

the

political
here

no one

they

do

not

adequately
to

tip

reserves

for

extensions

provide

or

build
either

All in

will

back

bave obtained commitments for
an

aggreate of about $3 billion.

A

i3,

final

of

mon

element

of

subsidy

exemption
incomes taxes in

course,

Federal

from
com¬

with all other
cooperative

associations.
KEA

Investment

*Tt has

.growth

of

Will

Double

been

estimated," the
said,
"that
the

Commission

usage

Commission

the

of

electricity

cause a
doubling of the in¬
vestment of the electric indus¬
try in the next 12 years. If this

growth

occurs in the elec¬

tric
cooperatives, the loans re¬
buked from the REA under the




if in

even

activities

their

expenses

if

carried
A

interesting

what

on

that

Fulbright
today

be

would

out

person

kind

handsome

private

St.

Now

did

the

not

vative

Hoover

go

to

as

get

like

Instead,

be

of

this

only

that

which

in

it

in¬

"We recommend that all
required

to

surrender

Treasury

all

United

curities held,
the

furnished

government,

to

in

in

return

invest

authorized

except

as

gress.

T ii i s

does

his program
the

not

in

the

not

be
idle

securities

by

Con¬

recommendation

include

trust

ac¬

One

only $5 mil¬

to

gram
to

$85

tional

of the

from

raise

billion

the

product"

money

pitch

$65

billion

"gross

sev¬

Asiatics.

On the other hand, Mr. Stas¬
will solemnly insist this is

NOT

eight-year
given no

an

he

but

has

ments beyond one

program,

commit¬

year's

appro¬

priations.
It

that

he

clear that what

very

Stassen

is

trying to

wants

say

please, if

you

the

other

seven

the thing

you,

going.

just forget about
years

and start

purpose

Uncle

the

Sugar

its

all

to

kind
uses

of

Spring Outing
Country Club of Mary

the

at

land.

May

18-21,

1955

(White

Sulphm

Investment Bankers Associatior

Spring

aid

meeting

(to

of

Board

ot

Governors.
June 8, 1955

almost

(New York City)

Municipal Forum of New York
conference on highway financ¬
ing.
June 10, 1955

Municipal
York

(New York City)

Bond

Westchester

and Beach

Club of New
Outing al

Annual

22nd

Country

Club

Club, Rye, N. Y.

Sept.

11-14,

three

1955

(Mackinac

I*

land, Mich.)
National Security Traders Asso¬
ciation annual convention.

(Chicago, 111.)

Investment Bankers Association
Fall meeting of Board of Gov

military aid),
Administration
allegedly

ernors.

give

no

what

bill

of particulars
"investments" the

United

States

projects

Asiatic

Sept. 21-23, 1955
Association
Firms

of

(Denver, Colo.)
Stock

Exchange
meeting of Board of Gov¬

ernors.

industry.

Third,

the

ministration

is

to

to

b

make

in

i 1 d

up

u

Eisenhower
cannot

give

Ad¬
any

TRADING

MARKETS

Riverside Cement B

were

Morgan

National Co.

W. L. Maxson Co.

Carl Marks
FOREIGN

deal

in respect to

Engineering

Seneca Falls Machine Co.

practical

"capital investment" in lit¬
erally scores of Federal lend¬
ing, guaranteeing, and insuring
agencies.

1955 (Baltimore, Md.)

sociation Annual

much for

as

system:

a

thi

at

Baltimore Security Traders As¬

Sept. 16-17

Second,
although
the
pro¬
gram includes $915 million for

the

Finan

is

eight-year

an

but he will thank

program

of

Societies

Commodore.

\S,

May

Federation

Analysts

Hotel

the

seems

Mr.

invests in shares of

is

cial

na¬

of

per year

sen

save

another $100 million.

National

of

sources

sales

million

capital

agencies the cost

Treasury

the

Astoria.

Springs)

hundred

about

paid

first

be

Thus, supposedly, Mr. Stassen

If

the

will

is aiming at an eight-year pro¬

can

borrowers

Ad¬

Congress.

lion, the Commission estimated.
government

the

of

economic
save

Eisenhower

ministration, including Treas¬
Secretary Humphrey.

times

This would

but is the program

entire

ury

that

non-in¬

their

other

any

se¬

them

and

terest-bearing credit
Treasury. They should
allowed

the

to the amount

up

capital

the

to

States

that this thing will
heavy fire from Con¬

Waldorf

May 8-10, 1955 (New York City)

believes that this is not merely

gov¬

business enterprises be

aid

even

Incidentally, Mr. Stassen

gress.

investor.

proposed

it

sure

to

its

on

Stassen's

make

program

into

run

eral

ernment

funds

more

return

vested.

by

Asia

to

the

the "investor" stop paying divi¬
dends to the corporation (gov¬
ernmental )

about Harold

end

(New York City)

Security Traders Association o;
New York annual Dinner at th«

Bill

concern.

this

Dealer!

a

he pays dividends to the
corpo¬
ration. Also, he pays the sal¬
aries of all the
employees of
Yet

(St. Louis, Mo.)

Municipal

made available last week¬

were

a
company. But instead of get¬
ting dividends from his shares,

the

Louis

Apr. 29, 1955

"studying"

finance

under

to

spring meeting

which

trouble

other

any

Asian Aid

on

Certain broad outlines

"investo r"

an

some

it

conser¬

that;

propose

as

money

Commission

radically

so

Give Details

of

they borrowed, this would
would

market

pay

earnings.

to

The Dividend

speculate

some

do

administrative

out of

to government

will

same

this

on

Shareholder Pays

It

all, REA cooperatives

these

cases

Ad¬

replacements,

the Commission noted.

in¬

odds

any

point.

low that

Treasury

and

counts."
one

Eisenhower

ministration

•f these systems

Com¬

budget-bal¬

even

Hoover

substantial

by simply taking this

they receive
pay

Eisen¬

Trade

that

are so

their

on

ing the interest,

of

misrepresentation

merchandise

not only heavier lines,
but replacements. The revenues

ac¬

being called be¬

for

in

a

much

as

President

mission
the

is

being forced to
as

the

REA

drawing
Sugar.

count from Uncle

REA

all

utilities

borrowing
finance

true

a

and

would

to

tax

had to pay for

users

current

who

money

the

However,
exemption
if

ancing, and there is

2%

Association

Apr. 28-29, 1955

then—"

lending

putting it in
Treasury securities and collect¬

They

features.

costs,

has

return

should

such

exempt

Federal

agencies to "earn"

Treasury

Even

and

to

to, defend the

of

for

"investment"

the

want

though

Can

particular it is almost uni¬

vestment

Rural

with

an

In

versal

National

of

Pennsylvania

(Houston, Tex.)

Group annual outing.

"liberal"

the

who

pay

caused

the

and

Cooperatives,
familiar

This

from

of

took my

Ash

corporation

financing at what it had to
awful

I

reorganized

nections increased, the coopera¬
tives have gone merrily
along
more

University

at the Shamrock Hotel.
after

quarterly dividends from Con¬
solidated Catsup I bought fifty shares of
Amalgamated

Hoover Commission

government

hower

Instead, what has happened is
that

Field

Texas Group Investment Bank¬

"—-and

even

Hoover Commission.

ly

at

April 24-27, 1955
ers

Proposes

their

of

Investment

April 4-8, 1955 (Philadelphia, Pa.
Institute of Investment Bankin

second

electricity

third

In

the

Slattery,

ex-

Xjenses.

views.)

EVENTS

only to

from

ever.

lets

own

COMING

This

Administrator,

were

than

more

"Chronicle's"

as¬

by writing such things.

a

trative expenses are also

re¬

ing about the subsidy elements

don't

ceived."

foreign

appropria¬

correspondent remembers writ¬

Association

five

full

the

Commis¬

Hoover

subsidy, which could be

dodos

first

in

be

1959,

pretation from the nation's Capita.
and may or may not coincide with

sion to bring out these elements

columnists

the

lag

between

not
or

predictable expansion.

took

flat 2% rate and is not payable

therefore, the

will
1958

cooperatives collect insufficient
either for replacements

(to

The

the

revenue

REA

by the

fiscal

is

money

1956, but

(This column is intended to

which
of the

of
out

new

flect the "behind the scene" inter

what he "had against" the REA

not exceed 2%.

may

actual rate of

ing

repayment

practically

pri¬

marily to subsidize the cost of
electricity.

>XEA)

billion,

rea-

appears

"The interest charged

lines

question since the REA's stooge-

receive

the

As

REA

in

asking for is

tions and spending.

where between $3 and $6

some

such

spending

the govern¬
going to end up with

appears

ministration.

for

words,

investment

an
,

is
of

money

spent until

own

is

What he

actual

This

Administrator's

be passed for fiscal

the

other

ment

fields.

Outstanding in this respect is

to

talking.

were

FOA

appropriations

figures show that
95% of farms are electrified.

amount

lies Federal endeavors

fault.

con¬

tensions."

lending,
insuring ac¬

and
the

was

without

double

also

sidering further territorial ex¬

government

on

tivities

will

financing

of

method

present

if it

as

expenditures about which

were

WASHINGTON, D. C. — One
of the things which the Hoover
Commission spotlighted
in its

766

Asiatics, other than the
comparatively trifling expend¬

\ /Iff

jLjL I MA/

Capital

1

eco¬

million

itures of the Columbo plan.

A

Behind -the-Scene Interpretation*

to raise the
productivity of the

nomic

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

•

&

Co Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

LERRER S GO.
Investment

Securities

10 Post Office

Square, Boston 9, Mass,

Telephone

Teletype

H Ufa bard 2-1990

BS 69