Full text of Commercial and Financial Chronicle : March 28, 1957, Vol. 185, No. 5624

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APR 2

1957

CANADIAN INVESTMENT OPPORTUNITIES FEATURED

Volume A 85

Number

5624

New York 7, N.

Y., Thursday, Mareh 28, 1957

Price 40 Gents

copy

EDITORIAL

"-a

""Senator John F.
in-this
that

Kennedy in

could

have

sound

foreign policy makers

they

termination

facing

us,

the

state

facts

can

sure

groups

and the uninformed

shortcut promises,
.

be—if

may

refuse to bid for the votes of the
by

policy makers, but

even

it fails by

wide

The

able

Senator

himself

speaks of "myths and
stand in the way
of

wise

public

areas

are

another

point

sincerely

taught

and
us

:"T

128

years.

■_

above 3.2 billion barrels and 20 trillion

2,900 miles of new gas pipe lines under
and signed uranium production contracts ex¬
ceeding $1,600,000,000. For anyone fascinated by
economic forward motion, writing about Canada
is fun. No highhanded dictators, no inflation^ a
marvellous branch banking system, rising living
standards, low national debt, no basic tax on
capital gains, and a people solvent, energetic, pru¬
dent and progressive, plus almost limitless natural
resources—all these make Canada great and are
making it greater. There is nothing make believe
in this Maple Leaf prosperity.
>

are

leaders of commerce and in¬

after all, deal with
exceptional product which pro¬
the very lifeblood of pur free
economy.
How that lifeblood can
be used most effectively is the responsibiJity of all of us here, and we
are
called
upon
continually
to
account for our stewardship before
the bar of public opinion
It is no

vides

citizens of this country got such ideas

knowing, but it is common knowledge that ideas
of this
provincial sort are very widespread
throughout this land of ours. This bit of naivete
might be considered harmless enough but for the
fact that, in conjunction with other similar and

that

secret

there

still

are

those

Transportation Facilities
As

who do not believe that our economy should
remain free—who would like to have business and bank-

Continued

page

true last year;

the Canadian accent in
again on transportation. The 43,000 miles
of railway make Canada the third nation in the
world (after the United States and the Soviet
was

1957 is

Ch.mpio„

America

Union)

rail

Trans-Canada
"An

March

address

22,

Mr. Champion

the

mileage. Its two main airlines,
(publicly owned) and Canadian

Executive Club of Chicago,

Continued

1957.

PICTURES IN THIS ISSUE—See Pictorial

Section

Candid

for

Photos

taken

the

Municipal

telephone:

and

UNDERWRITERS
BROKERS

artd

STATE

DEALERS

HAnover 2-3700

AND

INDUSTRIAL

PUBLIC

review"

SECURITIES

Burnham
MCM3ERS NEW

YORK

and

CABLE:

Company

ANO AMMlWK STOCK

15 8ROAD STREET, NEW

YORK 5. N. Y.

01 4-1400

Bond

Net

T.L. Watson&Co.
ESTABLISHED

County and

1832

Members

Exchange

American

Exchange

District Bonds

NEW YORK 4, N. Y.

gotd/UP&ti

COMPANY

Active

Markets

Dealers,

Banks

Chase Manhattan

Maintained

and

Brokers

THE CANADIAN

Municipal Bonds
for California's

Rights

offer

which

Canadian Exchanges At Regular Rates
CANADIAN

BANK

OF COMMERCE

SECURITIES
Executed

BANK

34 offices from coast to coast

CANADIAN
Orders

BROADWAY, NEW YORK 5

buy the above rights
expire on May 17, 1957,
to

the

Direct

current

Private

market.

Wires

Expanding
Economy

Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax

Toronto,

DEPARTMENT

Teletype NY 1-2270
25 BROAD STREET

FIRST

Dept. Teletype: N|Y 1-708

Commission

New York Stock

Stock

Members New1 York Stock Exchange

120

DIRECT WIRES TO MONTREAL AND TORONTO

Goodbody

• •

PERTH AMBOY

115 BROAOWAY

Co.

NEW YORK.

1 NORTH LA SALLE ST.
.

CHICAGO

I MUNICIPAL BOND
DEPARTMENT

Dohwiox Securities
Grporactqk

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

DEPARTMENT

THE

Harris, Upham &

OF NEW YORK

TELETYPE NV 1-22*2

COBURNHAM

BOND

REQUEST

EXCHANGES

♦

State, Municipal,

Bonds and Notes

ARE NOW AVAILABLE

THE FIRST NATIONAL CITY BANK

DEPARTMENT

COPIES OF OUR

UTILITY

BANK
BOND

Public Housing Agency

"atomic energy

& FOREIGN

CORN EXCHANGE

MUNICIPAL

BONDS

RAILROAD

CHEMICAL

30 BROAD ST.,N.Y.

State, Municipal

U. S. Government,

Securities

page

25th

State and

Anniversary Dinner of the TORONTO BOND TRADERS'ASSOCIATION.

DEALERS

way;

dustry/ Banks,

high school classrooms, we have no way of

page

reserves

pressing in the past few years,
they confront not only those of
who are bankers, but also you

who

free choice,

\: '

Springtime in the Rockies (Canadian) this year
will be graced by a lot of" new altitudes; in the
Canadian economy ; population above 16 million,
five corporations with assets above $2 billion; oil

anything else."

Continued

•

Administration.

Business

lenges, and the responsibilities that
from them, have grown ever

practically

believe that

Small

flow

exaggerated

increasing government inter¬

or see

the

I would like to discuss some of the challenges, the re¬
sponsibilities and problems that arise from banking in a
high level economy.
These chal¬

"Many American high

still

would rather be American than

faced.

of ignorance" which

anybody in the world, if given
How many

are

loans,

such

CF of gas;

of the formulation and pursuit

policy.

school students

nationalism;

foreign policy

monwealth,

of selective controls.

margin to embrace all the difficulties by which
all those who must make

look at' the productivity of this vast
expanding deliverer of pulp and petroleum, furs and fish, timber and titanium, asbestos aml
aluminum, coal and copper. We also present a tabulation of major Canadian stocks with an impressive and
sustained record of dividend payments for as long as

2%-3% range;
sees over-extended instalment credit
righting itself; and
urges maximum freedom possible under a flexible mone¬
tary policy, and, if controls must be had, general instead

small order for foreign
so

A springtime

Doubts interest rate level will return to

meaningless slogans and half

." This is not

medium term
vention

pres¬

means

By IRA U. COBLEIGH

formidable threat to

against by current bank* credit policies. For many com¬
panies, including small businesses, Mr. Champion sees
no ;tax reduction
in the offing and, thus, states it is
vitally important for bankers to stay in the business of

alternatives

and

however unpleasant they

they

truths..

have the ability and the de-

can

far

businesses than tight money, leading New York
banker contends small firms are not being discriminated

resist unwarranted public pres¬

courage to

sures—if

small

time have

same

Broad Mavkets,SoundMoney

President, The Chase Manhattan Bank

Depicting taxation

take the public

can

High Canada:ADynamicEconomy

By GEORGE CHAMPION*
*

foreign policy "if

into their confidence, and at the
the

public address

city late last week expressed the opinion

our

Banking in

We See It

Bmtk of Atttcttrtt
NATIONAL™vinos ASSOCIATION

Exchange Place, New York 5, n. Y.

Teletype NY 1-702-3

WHitehall 4-8161

300

Montgomery St., San Francisco,

CoW

The Commercial and Financial Chronicle
2

Thursday, March 28, 1957

(1442)

For Banks,

The Security

I Like Best

Brokers, Dealers only

™».
Participants

Forum

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

A continuous forum in which, each

Try "HANSEATIC"

is the investment

participate and give their

FOR:

they to be regarded,

Phoenix of London

added

CUOZZI

The Standard Products Company

made
maae

and not

as
as

with
wun

1920

Member

Associate

120 Broadway, New

b08t0n

•

philadelphia

•

Wires

Private

nut

York 5

Teletype NY 1-40

WOrth 4-2300

ctanric

chicago

san francisco

|j W

fne
rL

eener"

multiples

Specialists in

Ililjlll

would

the>'

rather

this

take

facilities

anodizing

Birmingham, Ala.
Mobile, Ala.

Direct vrires

STOCKS
after

has
b?en a"d will continue to .be
a real need for .the engineering

The formula for growth, as Di.

the independent parts maker who

and-

-Reid -'recently remarked/has been

facilities

manufacturing

remaining

tive parts industry where Stand-

Continued, on page -67

•

RIGHTS & SCRIP

earn-

now

For

level
sells

for .little
tnan

Howard

Established

o.Wn figure for replacement value

success

in March,

times

tnejz.au
ex?e«IiC<J
fif,
earned lor the

tfcpONNEIt&fq
Members

New

York

American

Stock Exchange
Stock

i
'
4
i
fiscal year to end

Even

BROADWAY, NEW YORK 3
TEL. REctor 2-7815

Standard Products is the world's

major

producer

window

Trading Markets

Air Control Products,

bonded to

Inc.

entire
into

Company

Colony Life Insurance Co.

This

Mason, Inc.

ard
of

Lynchburg, Va.
LD 33

the

also

The

channel

made

1957

has

made

by Standard's

electrostatic

Botany Mills

new

been

flocking

the

story

other

and

shown

creases

the

2956

^754 442

~
~

3955

1954

"III"

548 846

" ~"

219 ' 679

tures will

Stratford Corp.

r!!r

ine

Big Horn Powder River

Corpus Christie Refining
•

•

CAPPER & CO.
1 Exchange PI.,Jersey
City,N.J.
HEnderson

2-8570—Teletype JCY

Direct Wire

Dlgby 9-3424

apparent when
only 33

window
now

program

sales

The

$4.82

are

for

produced in 1952. Dr. J.

Reid
1

Standard's

per

New

products which have been

have

been

oeen
given the

na^e

the

■F. W.-

CRAIGIE&CO.
"

RICHMOND, VIRGINIA
Bell

System Teletype: RH |3 |«4
,

Telephone 3^0137

-~i!-

NATIONAL
of

BANK

INDIA, LIMITED
Bankers

the

Government

Kenya Colony and Uganda
Head

Office

West

End

London,

Bishopsgate,

I London ♦

2.
Brancht

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

Aden, Kenya. Tanganyika,
Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized

Paid-Up
Reserve
The

Fund

Bank conducts

banking

Capital
Capital

and

£4,562,500
..£2,851,562
£3,104,687
^very description of

exchange

business.

Trusteeships and Executorships
also

undertaken

high current returns as he is maDDreciation

caoital

...

about

1956,.-tor -example, the

intervening

April

apt

The

and

estimate

value

the

office

28-story

modern

building in the heart

business district

of Akron,

.Deposits ..;

•

continue

Book value

would

(exclusive of reserves)

Net. earninss after tax per share ^adjusted)
Approximate market price (before stock dividend)

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX

;

18-Year Performance of

35 Industrial Stocks

Dec. 31.1956

Dec. 31.1951

$159,074,429

$230,970,108

3.500,000

4,000,000

812,617

suit-

companies or large-scale

10,177,779
33.16

20.69
—

major, por-

also

5.507.090

(adjustedj

£@£1

the
rapidly

investors to attempt to* do very
much with it.
The stock is traded in the Overthe-Counter Market and the major
markets are
in Cleveland and

——

because

it would be impractical for in-

Net earning aftern tax
"

stock

surance

Capital stock
Surplus,-undivided profits and reserves..

is- well

within reach

President

car

It seems to me that First National Bank of Akron stock is particularly suited to the conserva-

the small floating supply of stock,

of the

„

$10

This building in 1948 had an esti- Akron.

lu 4. uiTiJanuary that he believes

figure Of

the

majn

all2?Stsold
d£Ufte
for

every car

able for trustees but because of

ot, offices

company

parts

as somewhat over
$1,000,000.
Bank premises are
carrjed at $2,133,854 and included
figure besides 11 branch

worth ot parts

MUNICIPAL BONDS

pro-

Furniture and fixtures ar.e car-

actual

discovers that

current

channels.

a\erages

Slated, in

119

this

one

distributed

ried

fhf&S
the $2.84
S

aPproxlmately

111 tlsca|. iJ?7'
success

$2.00 in 1957,

®±..sales* Ttlls would indicate

°i

industrial develop-

new

this year. The rights were worth bank is still growing
about $1.00 per share in 1956-and ;it needs Jto retain the
the stock dividend worth about -tion of earnings,

arf cVrr€^ runijb1S about

Sqnannft • rCr

Federal Uranium

•

again increase this year

adjacent

spective

^ capnai appreciation.
bank
yhears In 1956 right to pur- P»l<l' to cash dividends just $1.00
chase additional, stock at $20:00
out oi 'net earnings of
per share were given the-shareP" snare,
.
,
.
/
holders in the ratio of 1 newIt seems likely to me that the
share for each 19 held and a 5% policy of paying out a relatively
stock dividend has been approved small portion of -"earnings and
shareholders which should plowing back the major portion
be

Engineering
and
Research, ?-ecently stated that these expendi-

(Philippine Oil

•

Mr. Beecher B. Cary, Director

facilities

branch

western part

448 686

1953

including

ment.

table.*

there

stock over the past five
is graphically portrayed in

shareholders

Expenses

this

a
point where the
county-wide cover-

CAROLINA

1930

Tel. HAnover 2-4850

expenditures p
jeai out mere
fnllnwinfy
in--some
extra benefits
.

NORTH and SOUTH

dividend rate tive type of individual investor
xae
8
aiviaena iaie
mUch interested in
continues at the conservative $1.00 ™no is not so mucn mieresiea in

products.

engineenng

and Development

bank

possibilities;' of

accompanying

eneineerinP

recent years:

Research

w. F. Kurtz

reasonable

years

develop-

important

research

reseaicn,

BHHHt.9HI

capital

company s

Branches
Bankers

'the northern-part of the county
and one location in the south-

has brought forth

development,

have

ftreene^Gomponn

the

not

Since 1932 Specialists in

company

research and

Standard's
aianaaras

TMT Trailer

large

The management of the bank
increasing value and dividends has consistently shown an intelliover
the
years;
be moderately gent and aggressive policy in cppriced in reiationsnip to actual erations as well as in promotion
present value and be something and in my opinion will continue
which ten years from 1952 would along this line.
It seems to me
probably be selling for substan- this continues to be a growth
tially more than the then current situation
with
brilliant
future
market of about 22.
•
* •
prospects as, well ,as a sound
The record of the bank aud its Present.

this

program

many

Request

Akron

gives

aSe>

speculative:

"phase of their
operations. Working in cooperation
with the nia)01
automobile

ment

Ferry

have

only window chan-

been

aggressive

Universal Transistor

yet

industry for window chan-

manuiacturers,

Lanolin Plus

IT Wall St., N. Y.

vested; have

approximately 50%
requirements of the auto-

successful

has

American Photo Equipment*

ESTABLISHED

the

1897

—

strategically located to service the
Ford, General Motors and Chrysler Corporation's new plants in

the

fits

It is estimated that Stand-

not

nels,

return

nel.

Trading Markets

give

yet

reasonable

model

But the Standard Products

*Prosoectus

and

Tokyo

Investment

VIRGINIA—WEST VIRGINIA

wpjfices around Summit County has
proceeded

Broadway.N.r.t COrtlandt 1-5680

The location of branch of-

time.

bank

perforated steel tape

twice

over

other

any

were

recommenda-

produces
the

mobile

position

men-''

conservative

1934 to

started from scratch in

tion had to be

•

the

cars' growth possifeature for the first time window
bilities and

process.

particularly noteworthy
'that over the years this bank has

./„■

:■■■■■■■■■■

that any stock

automotive

prod-

now

exclusive

Scott, Horner &

TMT Trailer

tioned
-

now.
It is

pile fabric and rubber

assembly

channel

Tele.- LY 62

things

time

some

which cushions the glass and proa seal against weather.
The

company.

that

vides

Alabama-Tennessee Natural

First

channel.

uct made of

Bank of Virginia

Gas

^chronicle.''

striking

the

relationship of the present
price to possible fiscal 1958 earnings of over $4 per share.
is

120

June 30.

this

Exchange

•

Office

Bank of Akron, Ohio, was first
presented to the readers of the

Cuozzi

mated replacement value of $5,000,000 and you estimate your

was

write

Yamaichi

Broken

1952; that the
story of the First National

six

economy. -

Securities Co., Ltd.

Proprietor, W. F. Kurtz & Co., Cleveland. Ohio
The First National Bank of Akron. Ohio

SPD

information

current

Call

years

be stirring due-

appear to

improved Japanese

111

current^price

Since 1917

KURTZ

FISHER

WILBUR

practically \

stationarj levels for three

heip reduce costs and-improve
*

can

w:.WSidiversification within the automo-

office*

JAPANESE

WWWJ

branch

our

Home

tential

for

dependents and 4% to other manu.

NY 1-1557

New Orleans, La. •

.fa;,f„rp,.c
-

ara s experience counts, ne says

toward the use 01 a
t
expansion than seek
in automobiles j;tnu. .lu . Xfr
IT jV ?J
at
earlv date
diversification in uncharted fields.

conservative

HAnover 2-0700

savs

while

selling on exceptional 1 y

-.19 Rector St., New York 6, N.if. -

'■

counts

•

;use

Members New York Stock Exchange
Members American Stock Exchange

i'KSMSmk&t
Ifl r m

vfel
ri
yield

•o us

experience

Steiner,Rouse£Co

^ Reid feelg that the aut0mobile/
Parts field' although greatly cornJ
metal
As
insult grilles for petitive, offers many opportunities
in-ihe bie three are be- to a 'forward thinking companyrfmd iredf or the 1957 models Such as Standard Products.. He
.'"iFZst sU threat of integration
dthe
clZanv's'the
?
by the automotive manufacturers
sales are to the big three automoT '
I
t +£ I \ -\t
tive
producers.
Approximately and says that although.there will,
38%' goes to Ford, 37% to GM and flways be some integration par17% to Chrysler; 4% goes to in- ticularly of the larger parts, there.

eardtv rtrovid

(6.5%)

Principal Cities

aluminum

]ed

Stock "Exchange

the American

Exchange

Stock

™

Cleveland, Ohio. (Page 2)

lecogmzed at.^an^early date

demanding

present values

th#»

tnwarH

The trend
more

as-u*

terms
of both yield and earnings, the
Standard Products Company common
stock selling for about.15 V2
more

American

1
1

; ?

market which

4rpr,H

reiwnizeri

sociated.)

New York Nanseatic

Corporation

which
wnicn

Bought—Sold—Quoted

■'

and the push

the 1957 Mercury.

representative of the

institution
insuiuuon

button transmission assembly on

investor
invesiw

vrivate
private

a
a

represents 13%

now

total sales for SPD)

(My comments on this security
ntp
are

City. (Page 2)

within

line

„

hardware

5. Maximum Service

Secretary, Phoenix
Group, New York

London

Assistant

famous

Group

Vnyt pi.v

Complete Dependability

Investment

nor

Standard's

R... Cuozzi,

the Past tw0 years indude the*wst ^atlonaI City Bank of
safety lock
first
introAkron, Ohio — Wilbur Fisher
lamous saieiy iock *irst 1 110
Kurt7
Proorietor
W
F "Kurtz?
duced in
195o
by Ford
(door
p,
u, .'
.L

Assistant Investment
Secretary
investment r>ecreiary

Long Experience

Established

be,

2. Broad Contracts

intended

not

are

offer to sell the securities discussed.)

as an

Louisiana Securities

The Standard Products Company
—Howard

Nationwide Wires
HOWARD

particular security.

) Alabama &

(The articles contained in this forum
•re

for favoring

reasons

and

Their Selections

POLDER

REQUEST

National Quotation Bureau

1.560,881

2.03

3.90

UFrartSirMt

Hew York

4.K-Y.

Volume

185

Number 5624

The Commercial and Financial Chronicle

(1443)

INDEX

The Oncoming Inflationary Crisis
And the Inflationary Mentality

CANADIAN INVESTMENT OPPORTUNITIES
Article

By DR. G. C. WIEGAND
Professor of Economics, Southern Illinois

After

University

the

page,'"Canada:

cover

Rich

Resources,

Broad

dian

securities

includes

«nd, by

tabulation

the

from 10
\

128 years

banks

and

have paid

about

and

continued

the

(Table I) and from 5

along with other data of interest

rise

tjie

Congress

do not

fully

Treasury

Banking in

our

Administration

ity

not

the

For

than

America

has

drifted

our

turned

whole

eco¬

stimulants.2

nomic, social

political
system is in¬
fected by an inflationary mental¬
ity, and we are approaching a
point where the foundations of
economic and social structure
threatened.

About

year

the

ago,

well-

Swiss

banker-economist

Felix Somary,

raised the question:

known

"Is

act upon

con-

This, in

its convictions.

the democracies of our time, seems
.me

longer possible.

The ar¬

the

rogance of the employers, and
trade
union
leaders' greed

each

with

crease

in¬
inflationary

wave; both permit themselves
be carried along comfortably

by
rapid currents, with¬
out giving a thought to the end.
The governments are but obedient
more

ever

slaves of the 'inflationists'
the

public lacks inside, those who
it

rule

should

lack

courage

veiling a fact; that
beyond
its
Crises come precisely

The inflation is

America
means

when—and

will

men

living

because—the

not

believe

mass

Fifteen Years of Inflation

the

share
four

achieve monetary

The

Widow

following, addresses in this issue
25th

Members Salt" Lake City Stock Exch.

delivered

Spokane Stock Exchange

Convention

Present and Future Peaceful Applications of Atomic Energy
In Canada—David A. Keys
25
Impetus Natural 'Gas Will Give to the Eittire Canadian

Economy—Cyril T. Young
Iron

the

Ore—Robert

States

Quebec's

Low

Delhi-Taylor Oil

Looking Forward Confidently at British Columbia Resources

15 years, refuse to
pessimistic vibw, and
years ago,' with the advent
past

this

of the Eisenhower

—Hartley Sargent
30
same forces which,
fteoftit Copper Developments in the Chibougamau District
1,700 years ago duf*
-t-Jvi^obeiT Assad-_1
32 '
ing the decline of the Roman Em¬
pire—could be overcome, if the
i SH
7 Z yh ■> >- * ><•',
■■ \
/3
people recognized the dangers and
were prepared to fight them.
The
SEC Defers Proposed Revision of "No-Sale" Regulation

Western Oil Fields

administration,

complete speech entitled "Crisis
for America," was published in "Train,"
The
Vandon Press
Ltd., London, June
1956.
Extracts appeared in "The Com¬
mercial and Financial Chronicle," July 26,

fact

is, they are not. Our civiliza¬
is living more and more for
the moment, trying to anticipate
today the pleasures of tomorrow.
Why save, if savings are likely
to be expropriated through taxes
or
inflation?
Why wait for the

No.

tion

133

enough that our
economy
grows
2-3% annually;
people call for a 4-5% growth
rate. Wages must rise faster than
longer

productivity; the standard of liv¬
ing faster than income.

with

•

Procedure

"impatience
"factor," as Mr. Roy L. Reierson
has called the modern spending
psychosis,
goes
the
apathy
of
Americans

many

whom

'the.

word "inflation" does not connote

suffering
perity."

and

chaos,

but

"pros¬

As Mr. Allan Sproul
Continued

page

We Hope

65'

(Boxed)----

2 New

the

1954.

Dec.

York speech by the Secretary
Treasury Humphrey on Oct. 21,
Extracts
in
"Monetary
Notes,"

1954.

See

(Editorial)

HA 2-0270

Bank and Insurance Stocks.

...

——

Coming Events in the Investment Field-.—

—

Our

Reporter's Report-—"

Public

Governments

.1—

Utility Securities.——
Securities

—

Securities Now in Registration-

Prospective Security<Qfferings

:——

Salesp»uW<Corner.

—

The

MarketYWf—By Wallace Streete..
Security 1 Like Bestl———

The

State of Trade and Industry—

Washington and

You

4
22
631
54 *

Railroad

Securities

Weekly

Gardens,

Drapers'

London,

Started

Eng¬

land, c/o Edwards & smith.

The: COMMERCIAL and
For many years we

have

specialized in

FINANCIAL

PREFERRED STOCKS

DANA COMPANY,

REctor 2-9570

Spencer Trask & Co.
25 BROAD

New York Stock Exchange

TELETYPE N. Y. 1-5

jAlbanyl

•

Nashville

Boston
"

•

Chicago

Schenectady

•

Glens Falls

United States, U.
Territories and
Members

Possessions,

Pan-American

SEIBERT,

President

;Ev«ry Thursday (general news and ad¬
vertising • issue) and'every Monday (com¬
plete statistical issue—market quotation

records, corporation mews, hank clearings,
and

Worcester

city news,

Other 'Offices:

Chicago

El.

135

etc.).
South

Dominion
Other

Thursday, "March 28, 1957

state

Countries,
Other

Bftnk

and

Salle

St.,

(Telephone STatt 2-0613);

S.
of
in

$60.00 per year;
Canada,
$63.00
per
year.

Union,

$67.00 per

assets

$9,000,000.

general

and

today

TMT
frozen

from loading platforms bf

trailer to the doors of overseas

consignees in certain areas.
Send
of

for

TMT

6-page

description

covering

operation

year.

and

history,

future.

Publication*

Quotation Record

Monthly,
watra.) .

—

$40.00 per,year^ (Foreign postage

Rote—On account of the fluctuations In
'the vate of -exchange; remittances for

1953,

Subscription Rates

to 9576

HERBERT, D. SEIBPRT, Editor & Publisher
WILLIAM DANA

t—

shippers an'd carries it in game

25, 1942, at the post office 'at New
York, N. Y., under the Act of March 8) 1879.

Subscriptions

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

Publishers

New York 7, N. Y.

atterttion

second-clasS matter Febru¬

ary
B.

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in
over

picks
cargo

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WILLIAM

Members

•

CHRONICLE

our

Common Stock Around $2%

2
5

total
Published Twice

FERRT, Inc.

60
63

———

——-—1———

come

TMT TRAILER

—

dynamic and

most

fast growing enterprise

A. Wilfred May..

Reporter

14
67
64

News About Banks and Bankers.—

Observations

—

Our

Direct Wires to

Philadelphia * Chicago • Los Angelas

Einzlg: "Strikes and Sterling"

Funds

Exchange PI., N.Y.

Dealer-Broker Investment Recommendations-

Mutual

inc.

Teletype NY 1-1825 & 1-4844

——-^-Cover

—

Businessman's Bookshelf

Mackie,

Regular Features
As

ex-

Singer, Bean

—

The
of

Mailing

American Stock ^Exchange Plans Electronic Quotation System.

Indications of Current Business Activity—

this

Uranium Mines Co.

(Letter to Editor)

From Washington Ahead of the News—Carlisle Bargeron—_

"Prosperity" and Inflation
Paired

Pacific

—

New York Post Office. Opens Information Center for

buy these things today on credit.
It

Hycon Manufacturing

Pending Merger-Bill Termed Harmful by Arthur A. Burek

day when we can afford a car, or
a
house, or a TV set, if we can

1 The

1956.

the

—

HEnderson 4-8504

Teletype: JOY 215

Grade

Bergeron

—J.

which

Exchange PI., Jersey City

<DIgby 4-4970

—

United

and Mineral Progress in Saskatchewan Province
H. Brockelbank-

Oil

Psychosis
forces

Annual

were

of the Prospectors
and Developers Association Convention in Toronto:

Significance to

Western World ol

J.F.Reilly&Co,Inc.

Prospectors & Developers Assn. Convention

the

inflationary

YUCCA URANIUM

Man's Duty to Teach Tils Wife to Be
—Charles Ulrick Bay
uij
a

were at work

them."*

Most. Americans,
even
those
who deplore the inflationary trend
of

It's

Prospects of Atomic Power Development

—lion. Carl T. Durham-—

„

today

fc>e*a voided" /he

eluded, "on the indispensable condition that the
government f re¬
nounces its fear of the public and
finds the courage to express and

Some Realism

economic commonsense
honesty would eventu¬
ally win the support of Congress
and the American people, his pol¬
icies did not even prevail within

The

MINERALS
.

—_

could

"It

{

and fiscal

undermine the

able?"

UNITED WESTERN
—

Prospective Developments In the Mortgage Market
—John F. Austin, Jr.

thought

unavoid¬

America

crisis in

•

artificial

Inflationary

TRAILER

FERRY

Bad -for America?

—James F. Clark

however,
was
short¬
While Secretary Humphrey

The

TMT

We have

...

the cabinet.

IndiistriaTD^versification: Good

stability,
lived.

RIDDLE AIRLINES

Diminishing -Burden *of Consumer Credit—H. E Luedicke 12
Keeping Values in Balanced-Don C. Preston
13

Heard at

The effort to

G. C. Wiegand

and

backs

our

Virtue Again?

The

uncer¬

Nor will

Social Security ^Benefits: *COsts of Today's Plan Tomorrow
—Robert J. Myers-

■,

We will

the hot,

its economic health

today

are

his

HIGGINS, INC.

Company^—Ira U. Cobleigh——

Developmcht of Tight Money and tlfe Near Credit "Outlook
—Gaylord A. Freeman, Jr.-__^_____
:

wearing the false rose-colored
glasses of a prosperity based on
unwise
and
dangerous
govern¬
ment deficit spending, treachous
alike to the nation's security and

deeper into in¬
flation, until

our

STREET, NEW YORK:

Page
Uover
L

—Armand G. Erpf__

and

deeper

rising

Obsolete-Securities Dept.

International Harvester

assured

tain air of inflation.

years,

of the

one

10 years (Table II),

(High *Level 'Economy—-George Champion
The Oncomihg,Inflationary Crisis and the
Inflationary
Mentality—45. C. WeigaRd. *

halting infla¬
principal goals of

tion

'the

Articles and News

istration have rriade

of
the complex¬
aware

bring

cash ^dividends

investors.

enough to

Telephone: WHitehall 4-6551

"We in the Eisenhower Admin¬

seem

problem.

Humphrey

knows

his obsolete* to us!

99 WALL

listeners:

House

LI'L ABNER

Sound

that
the inflationary course would be
changed.
As
Secretary
of
the

living, but even today the

White

and

companies listed

consecutive

Savings and 'the Stock Market: Is Thrift

cost of

Dynamic Econ¬

of documenting the. views presented,

way

Canadian Exchanges Which

there seemed to.be a chance

In recent weeks, Washington has
become
increasingly
concerned

Markets

-Money," discusses the investment opportunities inherent in Cana¬

defining inflation

economic forces which

starting

Propelled

omy

as the "fiscal, monetary and general
produce higher prices," Illinois Econ¬
omist concludes from his analysis of post World War II data
that our chronic inflationary pressures, even with the distinct
possibility of a temporary recession, are knelling an approaching inflationary crisis. Professor Wiegand detects little difference
between "Modern Republicanism" and "New Deal"
welfare state psychology ; warns of the consequences of further dollar depreciation and expropriation of AmericaU savings; refers to an observation by Keynes, shortly before he
died, that "there is also danger in inflation", and avers no
lasting prosperity can be built on price-inflation economy.

for¬

eign subscriptions and advertisements must
bo made in New York funds.

JiEneral Investing £orp.
Members American Stock Exchange

80 Wall

St., Hew York 5 * B0 9-1900

(1444)

The Commercial and Financial Chronicle

able

International Harvester
Down the

Highway, Down

and Down

IRA

COBLEIGII

April

will

1957,

milestone

quite

will

date

Har¬

International

for

That

vester.

our

has

;

been

1951,
■,

its

mark

Anniversary in truck manu'
i
facture, an

event

suitably

memorated by
a <
televised

com¬

sales
for

meeting
6,500 In-

te rnatiofnal

•,

the

production

were
turnedout, and by
1955 the panoramic IHC line (the
R-line) had expanded to 168 chas¬

trucks,
that

trucks

which

J;,ust

roll

history, if
will,

1 9 0 7.

trucks

Harvester

The word truck has
bit

define

what you would have seen on the

roads,
that

era.

until

the

ruts,

matter of fact the

"trucks"

word
use

rather

didn't

come

into

and the Interna¬
Harvester
Company 1907

tional

1910,

models turned in its Chicago fac¬
tory, were known as "IHC Auto
Wagons" — high wheeled, hard
tired buggies with a 20 mph. top
speed, built primarily to haul farm

produce to market.

Not

lating vehicle, but
Auto Wagons w'ere

scintil¬
725

start.

built

1908

and, with the introduction of an
assembly line, 2,465 were turned
out
a

1909, and International, as

major truck producer of the

tion

was

its

na¬

way.

presently licensed and in use;
for

and

the

too

'International

kept on passing
by
trucks — low
wheeled, higher speed trucks (still
with hard tires) in 1915; the first

truck to scale Pike's Peak, in 1916;

pneumatic tired "speed" trucks in

1921; 100 armored trucks built for
in

1925; multi-stop retail
delivery trucks in 1938; and, in
1940, a complete line ranging from
%-ton pick-ups to giant six wheel¬
ers carrying as much as
any high-

past

has

years

vehicle weight,

gross

over).

heavily

that

has

feel that we've dwelt

IHC truck output,

been

done

two

for

rea¬

(1) to salute the 50th Anni¬

sons:

aforementioned,

versary

and

(2)

because, contrary to a general im¬
pression, trucks and not farm im¬
plements are the major Interna¬

spreaders,

cultivators,

etc.,

but

sales

farm market have been in

spin that has lasted for
five

This has

years.

down-

than

been

the

due

and

(Established in
Fill

Coupon
issue

Comment"

below

Trial

I accept your

Introductory 10 issue

Offer of "Stock
ment"

and

full payment

No. "E"

Market News and Com¬

enclose

herewith

$5.00

same,

(Please Print

Plainly)

Address.

Regular subscription
$15

(25

issues)

$30

rates—

(50

issues)

crease

parts
and

and

replacements

Dealer,

distributor,
in

abroad, handle
140

units

are

organizations
some

IHC

and

the

service

IHC

countries.

and

line

There's

sucker

one

pianists of the
One
Fifth*
days. After subjection to

Mutual

emphasizing

Dublin).

savings..

our

decided this

business she had

fo'_bu

Moreover, it

financial

the

explanation,'

idef medium tor the individual's

char-

irrelevant

Fund

salesman's choice prospect Was so
impressed with the Fund as the

Balaban

Josie

SgSSS?
;°r
/ith'^the'1
visiting
acteristics
(as with
tne vismng
of

his

concentrated two-hour session of

Ameri¬

demonstrates

Avenue

conforms

Mayor

her

suggestion

com-

been

seller

was

lnnkin*

not

t
Makinathnrf
S
Making short shrift of a
preparatory course clarifying the
^

persistent proclivity to
arbitrary sex issue in
extending from sharehold-

munity's
raise

the

areas

corporate
directorships.
Board nominee's qualities of financial knowledge, trusting
to
Surely

worthiness, managerial know-how
the like are more important
sex

1 a

i f i

s s

t i

c a

o n.

Redempsoo,n

iSw
^bb<jjr A°cn

-m

examination licensas a mutual iund repre-

and

than

The

"...

unwit-

While awaiting the finalizing of
her NASD license, our subject was

tingly furthering wholly artificial
unjustified pressure-groupism.

approached by the Stock Exchange
member firm of Osborne and

persistent
authoritative

distinction by

sex

sources

and

/i'itv

put; and thus set in motion

over¬

capacity among implement

mak¬

ers.

this

situation

has

been

added drought conditions in west¬
ern
farm states lasting, in some

truck factory in Australia and

net

for years.
Right now
the outlook, however, appears- to
have improved. Farm, prices rose
im-latter 1956, the soil bank pro¬
gram should

ment

models

offer

new

equip¬

considerable

farm

efficiency.
So
upping of agricultural equip¬

some

ment

sales

29%

were

this

help; and

(which

of total)

fiscal

should

1956
occur

year.

equipment
busi¬
ness, accounting for 17% of sales
in 1956, started off well but
slipped
in

February, so much so that as
of April 1, production of crawler
sales

catch

curtailed

with

IHC has a very
construction

until

production.

complete line of

stands to benefit

the

much

that

from

major

this

ness

sold

Federal

sales

source

last

may

up¬

not

year

for

$19

Altogether IHC is one of our
major integrated industrial enter¬
prises carrying its manufacture
coal

etc.

1954.

the

financial

Harvester

been

tower of

ance

sheet at the

side

has

before

restrained

Interna^

for

years

the

prospects for the different
parts of our business in 1957 in¬
dicates
year
our

the

likelihood

good

The biggest problem in
business in 1957
will be
.

rapidly
its."

rising
costs
and
the
thereby put upon prof¬

Prices

increased 5%

were

September of 1956, and while 1957
will

not

history,

be
we

the

in the order of
a

best

would

company

estimate

sales

$1,175,000,000 and

a
long term insurance
loan, at 3%% (a very
satisfactory interest rate); 816,724

shares of $7
preferred, a non-call¬

Balaban

Katz,

trucks,

and

its

40th

Pictures

stemmed

and

Brought

its

(in

years ago.

tl^^onpp^Th^atir^f^he
toeConcert Theater
the

with Weston W. Adams and Com¬
the

Stock

New

York

easier

than

voice

army camps, our

further

After

intensive

would

piano around

performing,

There

91.

two

are

other

firm

a broad research background,

and

Miss

Ellen

Erna

Hinkle

Hunter

who

is a
Canadian securities
specialist, are
likewise
normally dedicated to

investment

lifetime business

career.

All

three

these

individuals

firmiy

report
that
midst
their
conventional workaday activities

they

are completely
unaware
representing a sex statistic!

studying

a nom

Fifth

One

Avenue

room

self-accompanied chanteuse
specializing in French chansons.
Following an avalanche of bullish
as

("Josie

Balaban
Own"

Her

Manhattan's

MacNaughton-Greenawalt

again

Donley

she

was

J. E. Plastics

Makes

Mfg.

—

Sixties.

East

T.M.T, Trailer Ferry

Quebec Chibougamau

Here

inundated

with

Goldfields Ltd.

enthusiastic press notices. But now
our
ambitious
careerist
feeling

that

a
musical
success,
while
glamorous, did not represent the
means
to long-term constructive
achievement, broke it off for a

GRAND

RAPIDS, Mich.—Mor¬
Donley has joined the
staff of MacNaughton-Greenawalt
& Co., Michigan Trust
Building,
O.

ton

and

mark

tke

to_

trouper switched

with

has

Variety),
she then packed them in at Chez
Vito, the swank supper club in

Boston

(Special to The Financial Chronicle)

variety of courses at
institute; Of Fi-

postwar, fol¬
lowed by the winning of a major

Good

Exchanges.

Adds Morton O.

P S-

days

her metier to singing for the boys,

acclaim

members

and

York

New

paS£ing
the
Excharige's
Registered Representative exam-

Harbor, and realizing

much

Number

—

tjon; took
the

ination

post-childprodigy age of 18.
Pearl

Ex-'

examina-

de plume, Miss Balaban opened a
major engagement at New York's

BOSTON, Mass.
Robert B.
Flemming has become affiliated
Street,

Chi
C 1

TV/ric*

nanC6)

Opera House at the healthy

cago

ininina

change's Mutual Fund

thoroughly normal manner)

dessthe
ap--nabalaB. Stock

£^c^sor
en
was born

competitive audition under

Kilby

?sT"oncWert\Tabn^U"cnomMhSrtffiutol studies

cart

Joins Weston W. Adams

registered representatives,

Switzerland, her
education
(co-ed. if you please)
was
taken care of by schools in

IOV2

divi¬

rf 0I?~

Paramount

Jpsie Balaban

pnses,

how

dends.

pany,

the motion picture indus-

whence

try

buy¬

dividends
with
considerable
confidence. This is IHC's 50th year

Chibougamau Asbestos

lifetime of business.

members of the Detroit and Mid¬
west

Its bal¬
1956 fiscal year

company1

Balaban

after

times net earnings, and
may look
forward to the continuance of the

h,gh examination

A"1",ylnc

psycho-

"This event occurring a few

share net of possibly $3.40.

per

On such assumptions
today's
er of HR at 36 will be
paying

Stock

Jumping

Exchanges.

exploit the

film demand, she soon became co-

strength.

(Oct. 31) revealed net work¬
ing capital of $425 million.
Capitalization consists of $100

benefit

rep0.rts °,f

ssassssygssssi
SSSSS?
neers

note

The

frey, Board Chairman: r"Appraisal cosmopolitan Chicago 34

mines

mills to finished
engines,
tractors, trucks, machinery parts,

tional

(Special to The Financial Chronicle)

million.

own

optimism is evident from an ear¬
lier projection by John L, McCaf¬

until into 1958.

was

million,

importantly $2

heralded

subsidiaries

taxes.

1957

squeeze

Construction

tractors

For

almost $14

was

roughly

American

as¬

Dividends from for¬

incomes

fiscal 1956

instances,

million

business

heavy construction and road build¬
ing, long run rise in agricultural
demand, widening vistas of busi¬
ness
abroad, plus continued in¬

(Special to The Financial Chronicle)

Hollywood Preview,
an
original routine for showing
pre-production scenes from new

DENVER, Colo. — Kenneth
Lloyd has joined the staff of Wal¬

pictures, and interviews with guest
stars and Hollywood personalities.

producer

Joins Walston Staff

end

| Name
i

Trial

expanding

pros¬

the

manufac¬

gathered

list

look—without

except

W., Toronto, Canada

for

had

story,

foible

a
stranger describing him¬
by the esoteric-sounding term
mutual fund distributor, who

pub¬

of sex distinc¬

can

life—

10-year

self

This

the

Danny, /her

son.

South Africa.

Since 1950 net sales have ex¬
ceeded
$1 billion in each year,

Service—$5.00

and

ture, the excellent long term

and steel

Introductory

Stock Market News & Comment Ltd.
Securities Advisor
80 Richmond St.

tude of truck sales

with its theme

tion

realize,

of her

from

much

n e w s

with

Then one fine day our
guineapig got a phone call (quite fate¬
ful, as is now apparent). It was

course,

and

be the interest

along
old

in'business,

come

eign subsidiaries have been im¬
portant; and the unremitted equity

at first induced heavy farm
machinery producers to raise out¬

through from its

1936)

for

must

had

now

that

Steel, pig iron and coke com¬
prised, in 1956, 5% of sales, and
military products less than 4%.
The refrigerator end of the busi¬

of Canada's leading
Advisory Services

she

^i°wlfw£?r ^ intrigued by

occur

Market

and

artificiality of the malecategorization
will
be
clearly demonstrated by a simple

swing

Market News

absolute

Making money

female

appears

One

lions.

Vice-President
in
sales of four, corporaas

sembly plants in Mexico, the Phil¬
ippines, Belgium, Argentina and

agricultural
over-production
that has become almost chronic in
this country; an over-production
an

Highway program. But the veloc¬
ity of this
program
has
been
frankly disappointing, and it now

Stock

use.

reapers,

charge

sub-

popular inter¬

International really lives up to
its billing, by the extent of its
business
throughout the world.

graders, scrapers—and in the long

"Stock

1948.

from

split 3 for 1

About farm machinery IHC has
for
decades
offered
a
complete

run

was

equipment—crawlers,

Oilers Investors and Speculators
Great Profit-Making Opportunities!

common

line—tractors,

call-

recent

firms

elicited

The

pects

has, of

licity.

stockholders, without
interruption, since 1918, generally
paying out a little over 50% of
net.

member

est

distri¬

tional product, accounting in fiscal
1956 for 46% of sales.
,

number

cash

magni¬

Now if you

advances in

milestones

Brink's

about

The future of the company cen¬
ters around the sustained

motor

stretched

which

gets

delivered

(16,000 lbs.

International

produced 73.

2,610,441
1,100,000

statement
the

increases,
relative, in the

On
durability,
high rating

cities.^

infancy and
The annals •£
a
total produc¬

so.

dividend

since it has

low

high of 41%.

their

1,000

241/2. and

grounds

butions

built

has

having

ranged, since 1950, between
of

together

performer

led the field in heavy duty models

April,

reveal

year

tion

market

however, HR

Theodore

tile

models in 296 wheelbases, in¬
cluding "four wheel drives." Al¬

sis

attention

stantial

executive

be¬
improvement
in
sales
ancj/ women
earning power in the future.' His¬ coming affilitorically HR has not been a vola¬ ated with

telecasts to 48

was

were

powered

ing

President

tial

and

President, and Oklahoma, Arizona and New Mexico
had
not
yet joined the Union.
Autos

LPG

Exchange

Funston's current

ma¬

are

you

Roosevelt

first

trucks

back the pages

Cobleigh

the

1952

Har¬

this

equity centers around the
stability of its past performance,
and the possibilities for substan¬

through live

(165,600 units).
In

ture

WITHOUT APOLOGY FOR SEX
Stock

prospective

consideration

vester,

1948 this
almost
doubled

had

Ipresent,

By A. WILFRED MAY

since

year

current yield of

truck dealers

!'/

Ira

built;

were

each
a

shareholdekj&Jnternational' '

Would permit.' In 1940, 86,626

trucks

paid

qptain

5.55%'.'

largest manufacturer of

way

Observations.

N.Y.

the

symbol HR and
selling currently at 36.
Relating
this price to the $2 dividend which

tarm machinery, and third largest truck producer.

;

50th

springtime look at

shares, listed

under

For

market fol¬

Averages; and 13,875,-

common

S.E.

Economist

Enterprise

Dow-Jones
493

Through the Years

Thursday, March 28, 1957

lows interest rates rather than the

Company
the Farm,

blue chip whose

ston &

Soon" one'of

area

Co., Inc., Mile High Center.
formerly with Merrill
Lynch, Pierce, Fenner & Beane.'
was

came

the

le&ders

industry,

into her.

own

she
a

thi£

really

business.. !

John RJoIand & Co. Inc.
30

BROAD

STREET

NEW YORK CITY 4
TeL BO 9-0292

Tele. NY 1-4487

Volume

185

Number

5624

The Commercial and Financial Chronicle

(1445)

r
Steel

The

Savings and the Stock Market

Production

State of Trade

—Is Thiiit

Retail Trade

Commodity Price Index
Food
Auto

and

Industry

Production

•

change

on
Wednesday of last week from the level of the
preceding week, but output moderately exceeded that of a year

ago.

•

Appreciable year-to-year production gains occurred
petroleum, automotive and electric power industries.

in coal,

;

Reports from Washington this week state that the climbing
cost-of-living will bring wage boosts of one to two cents an hour
to some-135,000
workers, most of them rn the aircraft industry.

The Bureau of

Labor Statistics added

the

February rise of 0.4% in its

We
-

•*

tomed

Wall

prices for food and housing accounted for most of the
living costs, the Bureau noted. However, all other major
groups of goods and services except apparel also increased.
!

are

aceus-

soft-pedaled

behold

cendo.

the

•

went down

insurance

claims

newly

other

and

outdoor

activities.

The

total

week last
tries

was

1956, the Bureau

and

The analysis

28 steel firms representing 93%

of industry ingot capacity.
large steel firms made fewer dollars in 1956 than in
1955, while others made more. The net result was an increase of
0.8% in dollar earnings on sa.les4hat were 8.5% higher. Net income
as a
per cent of sales was off 7.7%.
per

common

but

year,

into the

price

Despite

maneuvering

the mills generally

products,
and "June.
The

;

selling

hard

looking for

are

Along with the imagination and
the brilliance of discovery and the
technical organization and disci¬

companies

apparently have

not

mar¬
ware¬

them

the

weaker

inventories

terms

days,

This

able

May

to discuss

mean

job in

our

briefly and make

sundry observations on the passtag show and the channelling of
savings into corporate investment

get

their steel inventories down to where they want them. The prob¬
lem is that poor sales are forcing production cuts which auto¬

matically upgrade

Gestalt.

the financial community/ Hence 1

upturn

been

pline, there is required the sinews
finance to tie these things to¬
gether into tangible structures, or
as the Germans would say, to give

auto

and

some

and

venture

concludes "The

and

capital. In a word,
relation to securities

savings

the

stock

the

financial

market.

Iron

Age."

get along with
The

ules

auto

point

originally

has cut

industry

11.1%

planned

below

reduction

its

April-June

production

sched¬

January-March
of

4.6%,

compared with an
"Ward's Automotive Re¬

nomic

theory and that little which
in

absorb

work

community we
minimum of eco¬

the

course

result

our

to materialize and puts the industry's April-June program
1,600,000 passenger car completiops compared with 1,800,000

prodigious
trial and error,
painful experi¬
ences, and profitable excursions.
As such, it has a heavier imprint
on
our
souls than might other¬

for

January-March.

wise

ports," stated

Friday of last week.

The downturn

stems from failure thus far of the

Spring sales

upsurge

"Ward's" said

the cutback

virtually by-passes Chrysler Corp.,
and its operations in Detroit area, and finds the auto makers' sec¬
ond-quarter target running fully 10.3% above the 1,450,000 re¬
corded in the same period of 1956.
The current output

adjustment coupled with the even pace of
sales, the statistical agency said, puts the

January-March retail
in

industry

line

with

6,000,000

auto

year

1957,

fulfilling

nor

lot

ism.

was

market

and

ago,

but truck output prompted the gain.
Scheduling six-day operations last week

division

car

tuchen,

plants,

Ford

year

of
were

three

Ford

plants and Mercury's MeCorp. also planned to work
Saturday at its Plymouth and Chrysler-Imperial plants in Detroit.

J.,

Chevrolet output

truck

Chrysler

the

with Oldsmobile at Lansing, Mich., restricted to
Also limiting its production to four days the past week
Lincoln. Meanwhile, Chrysler's Los Angeles assembly oper¬

last week,

four days.
was

ations

were

idle theentire week,

following the March

Continued

strike.

page

which
in

the

list

followed
the

the

New

These

all

along

Making the act
so

prac¬

that whatever be the safe¬

Investigating modifications
foreign issuers to
register and raise capital here, fa¬
cilitating instead of putting ob¬
stacles in the way of national pol¬
encourage

icy to place funds abroad to sur¬
vive and revive capitalism in the
western world.

decent

emption and simplification.

making
gullible

delicate, not likely to engage the

These

...

matters

fancy

Carlo

indifferent.

intellectual

financial

and

staff

th„

fm.

the

pro¬

and

.-hanncliru.

voting

roecftanlsm tor the "lanneling ot

touched upon

everybody's endorsement, but since the Act was forged

0f bmfo

cauldron

great

with

reform

revenue

here

;

line

incided
of little

more
or

less with

briefly is the matter

income-taxes, which are
stay.
Once upon a time
.

$25,000 income or thereabouts,
with its high purchasing power,
was
the
traditional
source
of

regulations actually inhibited

for bond

funds

and

equity issues.

the smooth flow of investment and

The progressive income tax effec¬

still do.

tively ploughed

It required the tacit sup¬

pression of
to

the

make

lot of the fine print
Act

workable

and

Wall

this group under
and therefore?

Street

;

and

industry were deprived of this
it be
large segment of clients. These
come
possible to put out a Sum¬ people were major savers whof
mary Prospectus so that what the
provided capital for many of the?
offering was all about could be corporate issues and along with
understood in a practical manner, the upper income brackets were
buf even now small business and the logical sources for money td
new ventures labor under consid- be ventured on risky small busi¬
ness and untried enterprises. Un¬
era»le handicap.
By definition a venture is some¬ der the present tax schedules it
thing new which has little or no is extremely difficult, if not wellr
history. It is sponsored by people nigh impossible, to save substan¬
with
techniques or with money tial sums of money annually out
on
the basis of a
projection of of earned income; If savings are
costs, revenues, and earning pow¬
to be encouraged, presumably the
usable.

er.

Only recently has

Without

such

his

body

undertake

projection

right

such

no¬

middle

would

mind

but

venture,

projection cannot be mentioned
the public and only muttered
to the prospective
underwriters.

The
,

It
or

taboo

fiction

of fancy

financial

fraud

promoter.

poetry

the

and

taxation

upper;

should

likelihood

brackets of
ameliorated.

of this happening,

politically, is slim indeed. On the
contrary, if tax reduction takes
place, it will probablv be in the
very low brackets and instead of

flight

And

Continued

page

THREE

SECURITIES

OUTSTANDING
"
.

Federal

Life Insurance

Company

National Mortgage Association

The Great American Life

Underwriters, Inc., Class A

was

income taxes.

problems of

severe

the

Write for

Even

consumption

and
over-capacity
engaging our attention, sav¬
ings were desired to balance out

WM. N. TE6TMEYER t CO.
39

were

'An

Round

York

addres3
Table
School

by
for

for

Col.

Erpf

Business

Social

City, March 21,

before

the

SO.

New

SALLE

STREET

CHICAGO, 3, ILLINOIS
Phone

Executives,

Research,

1957.

Circular.

era

under¬

might be

major-ele¬
of the rules

many

A second element that

savings has

passion for

difficult and

are

passing politicians with
public ignorant, and

wise.
The
objective
of
turning Wall Street from a Monte

mepj,anjsm

the

favor

promoter.

public

fessional

orderly

the

of encouraging

to go
not
overloaded

en¬

Tackling the ticklish prob¬
some savings
into risk ventures on a basis

(d)
lem

was

supposed to

and

out

Street

fashion

honest

crooks

chaos

Wall

were

Secu¬

stock

depression

the

cus¬

once en¬

(b)

enactments

investment in

courage

ment,

law

tled.

the

are

Exchange

laudable, regardless of
conditions; and of course this co¬

New

;

with

capital¬

corporate

great

change

guarding features to detect and
prevent fraud, legitimate security
salesmanship will not be throt¬

factors

which

and

old American

considered

drop in Buick, Oldsmobile and Pontiac out¬

the

virtue

money

tical

the

has to contend

and

Quarter-Century

attempt

financing.
of

thrift was an un¬
and the saving

Keynes,

when

also gained.

"Ward's" noted

put

seven

facility.

virtue

(a)

im¬

some

Franklin

Prior

questioned

time

our

cres¬

which

to
of
modify it slowly, it might
be ; timely to codify the quarter
century of experience with the
Securities acts, moving out of the
punitive phase into a creative one
with the object of accomplishing
a few things, such as:
/ ' ;•f ■

use

Now

and

week

Street

even

creative
lifeblood

the

bly lir.es, the past week, the statistical publication said, compared
same

and

money

with

161,904 in the prior week and 154,977 the

Wall

neither

but

large-scale

5,801,000 passenger cars in the United States.
estimated 162,610 vehicles faere anticipated off the assem¬
1956

vice

case.

been

simply a necessity,
for
without
savings
we
could
scarcely
break
even
and
with
plentiful savings we can make a

predictions made at the outset of the 1957 model year that fore¬
casts of 6.500,000 to 7,000,000 sales were overly optimistic.
Out¬
in

has

This

put

the

thrift

First

and

were

for

rities

born.

any,

if possible, but rather
.case-by-case
method

acted,

ments.

discovery meth¬
ods, just to mention a few, will
all
require realism to bring t«
proper fulfillment.
/
'•
"
;

as a perj cent of investment was off 5.3%.
Re¬
flecting the industry's expansion and modernization program, in¬
vested capital rose more than 7%.
Meanwhile, demand for some steel products continues weak,
although heavier products are still in strong demand.
Some auto companies are unloading sheets through brokers.

way

Erpf

economic

our

exploration

dropped to $6.69 in 1956, from
dividends declared were up

ket at below mill prices. The competition has forced
houses to meet these prices, this trade weekly states,

Armand

and radical innovations in mineral

common

And part of this odd-lot material is finding its

vir¬

well-being. The
explosive increase in population
in a highly industrialized nation
with a high standard of living; tne
use ' of
electronic
equipment to
multiply human energy in manu¬
facture, in research, and in con¬
trol; atomic power and its ancil¬
lary
implications;
the
jet
age
compressing space and time; new
metals and metallurgical processes

Some

Profits

tom not to

1955, income on sales was off nearly 8%, according to "The
Iron Age," national metalworking weekly.
The annual "Iron Age" financial analysis of steel indicates
that higher steel prices apparently came too late to offset the cost

$7.24 the previous
23%. Net income

While it is

savings.
After all,
Wall Street is probably the single
greatest savings institution in the
country having to do with vola¬
tile, dynamic, and venture invest¬

revo¬

and

Street

handling

lution in itself and will have pro¬
found
impact upon our society

1,530,600. Recalls to work in seasonal indusresponsible for most of the decline, the Bureau stated.

of the strike and increased labor and material costs.

tually

The total for the similar

covers

Wall

inthe

which

Higher costs coupled with the 34-day strike hurt steel industry
earnings in 1956.
While dollar profits were slightly higher than

forces

about

it.

moving

look

some

terms

Experience

beneficiaries.

Let

ments, each of

year was

were

the

midst of many
basic develop¬

Insured unemployment went down by 41,700 to 1,664,000 dur¬

ing the week ended March 9, it declared.
,

claims

new

us,

something
are

pickup in construc¬

about 600 above the figure for the like week of
further noted.
,

have

workers

by 23,400 to 212,400 during the week ended March 16,

the Bureau of Employment Security reported.
The decline was occasioned by a seasonal
tion

laid-off

Codifying

savings and
the right direc¬
have, as far as I can sec.
largely been resisted by the pow¬
ers that
be, and even by some of

on-

ore,

the

tion

but this is not

enough;

' ■

times.

Efforts in

the
rate
channel them in

opening

before

rising most noticeably in California, Ohio and Mich¬

Unemployment

are

and
spoils, if
unfairly divided, v.

not

sorts

erode or

prove

vistas which

employment front increased layoffs were reported in
the apparel, textile, construction and food
processing industries

seems

but

where

;

sav¬

was

all

pasture which showed

moose

rock

candor

prevent

public was perfectly
to
plunk
down
hardmoney
for
parcels
of

earned

•

music, therefore, the savings tune
has always been with
us, although

and

romantic

On the

segments of the economy to pro¬
vide employment. As background

attractive

with claims

ranting long-term confidence..

Street

realism.

igan.

scanning the horizons
from our watchtower, nervously,
if you will, but nonetheless with

/Higher

rise

Members New York Stock Exchange
*

•

consumer

Contracts of the affected workers call for
hourly pay increases
the index goes up.

the

pay increases will

price index.
New living cost increases
pushed the index up to 118.7% of the
1947-49 average, setting a new
high for the sixth straight month.
as

abuses;
willing

result from the

Partner, Carl M. Loeb, Rhoadcs & Co.,

salesmanship be relaxed; procedures be set up to encourage
foreign corporations to raise capital here; registration procedures for small business simplified; and risk ventures be
encouraged. Advocates giving life insurance companies and
savings banks same latitude as pension funds for equity investment. Although believing
high interest rate may adversely
affect equities, concludes market will be dull and
static, war-

period ended

risk,

for

Following our quarter-century experience with securities legis¬
lation, Col. Erpf urges undue restraints on legitimate securities

noted in over-all industrial production in the

was

ings

enough

Business Failures
•

ample of careless handling of

By ARMAND G. ERPF*

Price Index

publication
in the

the

because

■
of
penny
uranium
stocks, the outstanding recent ex¬

Virtue Again?

than

prospectus

promotion

Electric Output

Carloadings

required

Financial

6-2.163

Teletype

CG 625.

(1446)

The Commercial and Financial Chronicle

remember

must

Development of Tight Money
And the Neai Credit Outlook
f

bank

total assets and

Almost

have

publication
in

seen

contained
t

the

last

fi-

which

has

reference

Money.''
"Tight money"
is a simple
phrase and
sufficiently

vafue

of fisoc]

/
■

bearing
when

Jr.

being

little

credit

has

indeed

it,

been

extended

last year or two than at any

the

past.

the

time

accurate

bonds

portant
the

amount

immediately made

avail-

able.
■

additidnal

consequence

credit is not only less available
is also somewhat

than

Just

labor

was

vear

become

two

shortage of labor

expensive

ago

causes

has

increase

credit

because several competing wouldbe employers of labor bid up the

its

some

of its long. 3%
a

had

most

im-

influence

the

amount

available, because

bank-

bonds, at a loss, in order to
the proceeds with which

our

obtain

additional

make

have,

sold

course,

others

loans.

and

some

shorter matur-

ity

to run off without replacing
them but we have not liquidated
nearly as many of our bonds as

would have had there been
better market for them.
we

only

the

best

made into

remaining
to

the

place

credit.

never

must

seen

consciously bidding
but

rate

est

that

admit

bank customer
is

the

result

nevertheless.)
of

which

interest

bank

loans

business has moved up moderately
in
the
last
two
decades, it is
*An

address

(cha-ts

omitted)

TRADING

hy Mv.
Chicago
9,

1057.

Federal

buy;

ered

c()1|ectivel

ernment.

Industrials

vear

central

lot

investments

Golden

todajy's

assets

Triangle

loans
much

TRADING

DEPARTMENT

TELETYPE MM51

want

■

& COMPANY

INVESTMENT SECURITIES

201 S.E. 1st Ave. Miomir Flo.

Phone: Miami, FRanklin 3-7716

they
lend.

o/'at '"easf

ALFRED D. LAURENCE!
|

banks, have had
age

their

55%
deposits)
lot—about

der

ers,

(82

borrow, in

seem

w1lv

Credit

?°+w did credit get

out

by
not
we

production,

investment

made

was

re-

available

Perhaps the first
vious

cause

was

and

the

for

lines.

You

automobile

will

recall

companies

about two and
and

banks

Mort-

$144

over

order to fi-

and

all

S211
$211

billion
billion

at
at

1945

end

wonderful,

with

homes,

new

the picture. Finance

credit to the

or-

sequence,
;

rapidly

(64% of deposits),

assets

Although

the

had

con-

borrowed money.

all

Almost
caUsed

despite the fact that there

^edit

mo;e

extended today
than at any time in the past, the
jg

exceeds the amount cur-

'ently available.
j

no.

dit
fi{rhf.

got

that

we
Federal

tem in discussing how
so
tight.
Credit got

hpra,KP

an(i

von

cor-

our

pOVatiOHS, Our city, Our State and

^ur

have

Government

Federal

Z'7cde^ 111?

^ Sy/emThl/caus'ed't^tight
1
h_.m

this

f.mmtprictpd

and'made
,

tif
.

some

credit

wished

todav

and

could, by directly

tomorrow's
did.

outstanding

over

time

same

end

billion. In

it increased

the

pay

Consumer

th^

less than

was

years

the

seven-

...

ways

extensive

repair

and

re-

building programs - for which
hey had to borrow. Municipal!ties facing increasing numbers of
.school-age children had to build
new schools largely 011 borrowed

funds

with

state

the

and

resultant increase
local

stating that it

states

which deteriorate
bad had to during
let their
thehi^h"
war

•

the

1955

1945

the

note

you

mPnt.j«ned

Reserve

Federal

that

hope

fold to $42 billion at the end of

credit

un-

corporations expand and.
continue to purchase

inaeea 11
J,
To accomplish this the rederai
Reserve System could reduce the
discount rate and
slight extent, encouiage the ha
s
to borrow The Federal Reservd

buy today from
check,
and
he

ex-

that

goods.

was

could

factors

continue

the

demand

this
as

consumers

consumer

save,

reserve

their loans have increased
$8.8 billion and as a consequence, as of March 6, the banks
(all
member
banks)
owed the
Federal .Reserve $730 million for

all

com-

central

city banks have sold over $3.9 billion of governments in the last six

cars

credit

expanded—the

longer

110

consumer.

consumer

(or 56%

deposits) and in the case of the
reserve city banks, 55% of

demand

the

faced

consumer,

investments

and

to 50% of their assets

Thus

tai^ Permanent iobs and at high
r/d the S toextm/i 7ZZ

not

loans

Ahsolves

The

part of it, but this
was enough to:1

debt

than U. S. Governmentof all commercial banks

ac-

5eceivable', corporations
bolr°w e*tenslyely- In"

bank

run

abated

for the additional plant
inventories

WA Selm'pl^edTt

many

were

commercial

reduced produc-

tight?

that

assets
coun--

one-half times all of the assets of

years,

rate
s?VmgS' This might have
resulted in some

most ob-

brought about shortages in

the

central

the

these

war.

total

the

banks

the

Indeed, it, is

try.

1956.
*

some

than

all of

to veterans

increase.

indebtedness

began

There are several, to
tent unrelated, causes.

•

is hard

much

FHA loans,

$85 billion at the end

credit?

loans.

comprehend
$717 billion, but I know that it is-,
Yes,

bonds)

and

five-fold

over

and

has^seTtt^rTat^anS

assets

high in relation to

trips to the moon.

less bit of information if you ever

Obviously, this tremen-

and equipment and

more
money
to
In addition, to todav's bank-

loans

it would equal

(other

expansion

To pay

invested, in

Why Is Credit Tight.

larger percent-

deposits). Measured
such standards, bank loans are
extremely high today.
But
r

billion end
142 round
(That's a use-

laid $717

you

1,100,000

housing and on the easiest of
terms, with the government encouraging no down payment, 30

deposits or total assets and even
higher in relation to capital funds,

In
1920 their loans and
investments in other than U. S. Governmerits were 60%
of their assets

1,300,000 in

over

additional

year.

this

New" Yorl/c'ity
a

housing

billion.

to-provide

loan.

currentlv

have

1943

and

end,

what caused our loans to reach
™ch a high level and bond prices

There

€ion-farm

quired great amounts of credit.-

want to sell government bonds (at
present prices)

be.

to end

gages on other properties brought

been

would

to
our

Sink and shining goods soon reduced his
savings

deed it is difficult to comprehend

increase

construction

^^uf moTe/^ ti^-tight
theirs

loans?

$22,600,000;

bankers

(or V63%
seems

shai^ acraunts

their

and 54.5%) at the end of
last year,

\V Florida's

just how many dollars that would

also absorbed

191,000

XouftmStf "T
entered

assets

other than U.

rush

contractors

bil-

seventeen

lion dollars is a lot of money. In-

1956. Home construction increased

nance

,?,//// ThP
lhe

today's bankers.
In
1935
the
c&Jtral reserve
city banks had
onfv 36.4% of their
assets in loans
and

and

increase of

hundred

from

dous

market level.

al a ieal loss-

enrt

lot by the standards

peoDle

our

equal

billion,

than $298 billion.

the

„SP!a"tf^ ™

Goveritment bonds, 25.?% in 1945
Invest in

reserve

f5% of their

ars,,

t is also

Bank, Insurance Companies,

increased from $419 bil—I

debt has

lion to $717

produce, the great variety of de-

last

«*>-

the

in'll short

consumer, mortgage,
municinal and Federal

the

1955

re-

Vomnlnie? Thefr hfan?

lenders

city banks,

JrC%V£noevd

It i

SECURITIES

all

eonseouences.

total

fJll"

city banks may be considindication of the general

markpf

monev

and

starts in

the

loan associations
"ow 46% ot their total assets,.
asl?"a.t,°"s:
twice as much in i.wa««u.w
relation to asfinance
sets as the 23%
S Tndi
sets as the 23% they had in loans
11 years ago.
£?mpar?ie,s alld Pension funds, u
.
Like the banks the
Nevertheless, the figures for this insurance comnames cannot make
rel3tively small group of central

out to others

FLORIDA

other

the

know

Since the end of 1945,

insurance companies in this*
sired goods..
' "
-country put together. It is obvi-Automobile - production moved ously
far
more
debt., than ;we
up fantastically from a low of 139 could absorb. Of course, individ-'*
.automobiles in 1943 to over 7,920,- uals and finance companies and
186 in 1955 and to 5,801,733 in loan associations as well as others

Reserve,

enmnanies

city banks had
"k"
(that's 63%

MARKETS

are

total group of

banks

insurance

reserve

Freeman
at
the
University of
Management Conference, March

city
but a

reserve

they

course

includes

country

However, although the average
rate

the inter- part of the

that

banks.

was

year.

heard any.).

goods

effective demand.

corporations

al-

should the Fed decide not to

'"w

Chicago—the central

rush

Federal

themselves. at
the

have

but had not

war

As a consequence; l'rqm the moment the war was over, there was

price, so credit has become more the tightness of credit can be riew,, or not to make such loans,
'"T"
evoensive as enmnetine wnnld-hp
I'minH
in
(tie
nnnHitinn
1banks would have to sell gOVexpensive as competing would-be found
in
the
condition
of
the
borrowers have bid up the price
larger banks in New York and f
bonds no matter at how
of

re-

last year,, up to over $L billion- Mortgages on one-to-four-family
one time durln£ 1956— but units grew from 18.6 billion at the
by doing so the banks, in ef- end of 1945 to 99 billion last year
mercy

baromelcr

individ-

the worker had

jndeed the member banks have year, guaranteed loans
doln2 d a 2°od d^alq1" ,^he and extended terms on

How Tight Is Money?

Perhaps

been able to spend.
;
Thus -the desire for

in-

feet,

accumulation

during the

the

desired

up the consumers pentdesite Tor goods was the sub-

ceiv'ed

these

with

high

loss of .6%.olvprin-

debt,

Seven

selling on March 8 at about
941/4%.
Thus
the
bank
would
1 Vz %

even

and

uals liquid assets (of $148 billion
in 1946) resulting from the

the-Fed and known generally as
"the discount rate," which is now
%%■ The bank will have to pledge
government bonds and the loan
^or ordy 15 days. At the
end
e 15 days, the bank may
not
a position to repay the
l°an aad hence will have to re-'
new 11* H deposits decline,- the
bank way have to borrow even
mare
funds.
There is nothing
wrong with such borrowing, and

ask:

produce

which

and

Backing

The bank will have to pay to the
Fed That rate of interest, fixed by

Having concluded that nrcfatorv

note let

wages

non-existent

television,

1955)

Thus,

quite

but

its,

1948, to increase
which
amounted

end

own

ror^o^te.

bonds

(of

the

the/

$252,900,000,000 at

$276,700,000,000 at the end of last

war

new

$278,700,000,000

from

debt

end of 1945 to

years,

stantial

4 Vz% loan. But

bonds

government

taxes,

goods.,

the -Federal

the

which

The bank would be glad

growing dependence upon the-

ances,

But unfortunately, the
of the cold war, and

necessities
the

biles,

reserves—or

from

money

loan) has
government

The bank can't reduce its reserves,
except for a day or two, for it
must balance out each week. 1

expensive

some

reduce

the

miracle

repay-

in the Federal Govern-

reduction

ended, there
great shortage of automohomes,
household
appli-

was

in income. Clearly,that alterhaiive is not entirely desirable,

years.

have been less willing to sell

ers

allowed

the

occurred

moderating

ditional -credit

than

has

Thus,

shortage of facilities in

ask

pro-

war

materiel,
spent less and less for equipment,
reflected in expenditures for
durable equipment.

crease

This decline in the market price
we can sell our govern-

sell

although

Reserve Bank and borrow—if the
Fed is willing to loan the funds,

This

statement would be that currently
there is a greater demand for ad-

that

for

large loan, the

other

some

This

demand

/Manufacturers,

condi-

clines.

ment

sense

great

ducing volumes of

owing

this

ob-

been

indifference to debt and
allowed the Federal Government after reducing its gross

have

might

debt

pal

Federal Government accompanied

bonds,

ternative

the

want

(unless

have-to take

loan,

at which

credit
of there

banks

private, corporate and munici-

ere-

Reserve
or

expansion

Even this tremendous

urban

only 191,000 in 1943.

in 'as

able and the market therefore de-

Furthermore,

Federal

cipal in order to get

par—but

markedly in the last two

define our terms. It
that's tight, for there
shortage of currency or coin,
us

above

19.0%

was

which, demand was further augmented by the movement
to the cities during the war.

of last year.

sorbed if there had been any real

housing

were

market

sell in

may

the

in order to make

bank

isn't money

tight

"37t>* rate

you

natural 3%

can get 4%
for that
the 3% government
bond is comparatively less desir-

gotten

credit.

the

tion, if

to sell

interest-securities,

free market at

same

G. A. Freeman,
And
how long is it
likely to remain that-way?

it's

the

Reserve.

interest

assets

our

at the end

1945 to $42.7 billion

city

reserve

10.4% in cash

With

borrow

When the prime rate for a current
loan is. 3%,..a gqvei;m:gent. bond

tight?

isn't

of increased

decline

that

and

$13.7 billion at the end

debt from

ment debt.

ated

were

from other banks.

bonds

discussion

our

you

with

ment

central

States Government

either

price

At the end of 1956

55%

Pro-

Thursday, March 28,1957

similarly reduced during the war,
from 706,100 (one to four family
non-farm) housing starts in 1941

investments other than

and

bank

living,

consumer

prelude to

rates

meaning. But
how tight is
money?
Why

and

cost

the

and

consequence

the

First, let

260%

rt^lly under¬
standing its

the

J'* I might remind

necessity of

has

1930

relation

Governments,

13.1%
Bank
us

index has gone up 63%.

to use

anyone

and

United

are

1945.

The construction of homes

high

In 1920 loans of the

have

loans

today's

the

570%.

were

banks

$717*

assets),

than

was

dropped
from
3,779,682
1941 to only 139 cars in

biles.

city banks
reported reserves

Today

Hourly wages paid in manufacturing have, since 1930, increased
from 55 cents to $1.98, an increase

inexact for

without

labor

"Tight

amounting

insurance

lower today

who

reserve

they

much lower in relation to the cost

you

year

excited

debt

and

1920's

capital.

633%

the author to explain why credit is tight.

newsletter

every

bank

total

times

detailed by

naneial

governmental

corporate,

(2Y2

the

'capital fundis.

higher

even

central

relation to\apital funds."
Pent-up consumer demand,
industry's accelerated expansion, and tremendous increase- in
billion

depositors
while

approaching

are

levels

private,

extremely
horde of sud-

less in relation to assets,

are

they

present prices, or borrow, helps make money, tight, Mr.
Freeman explains, and, in addition, to today's bankers "loans
or

frightened

loans

Thus at the war's end there
a
real shortage of automo-

Vice-President, The First National Bank of Chicago

early 1958. That banks do not want to sell Government bonds

sale

1.943.

Furthermore,

and Federal Reserve assisting supply increase late this year or

for

loans

duction

clamor for their money.

Chicago banker explores the much discussed
"tight money" subject, and anticipates credit demand decline

produce

ears

denly

Prominent

posits

difficult to pay ofl

By GAYLORD A, FREEMAN, JR.*

high ilTtalation to deposits

allowed

civilians from 1942

seem

that shortly sub-

sequent to 1920 banks learned, the
hard way, that with 82% of de-

government

—ZJ'ZZZ*

ings,
— encourage member banks to
to
b(£r'ow more extensively from
Federal

Reserve

the

increase

Much

loans>
F

could

^ k"vi n/fovernment
.J

f-f?
_

System

amount

effectively, the

ease

credit

bonds at

cnabline

the

Continued

9,-

on page

Volume

185

Number

5624

Interest

(1447)

The Commercial and Financial Chronicle

laws from all Federal Income Taxes

Exempt, in the opinion of counsel, under present

I'e-TV Toc/PHfx

OF
//•vK'TY

6%,:5%,.2Wo,2%% and 2.90%

Major Thoroughfare Construction Bonds, Series "E"
"

Dated April 15, 1957

and semi-annual interest,

Due March 15 and September 15

Coupon T'onds in the denom:nat:on of $1,000 each, registrable as to
March 15 and September .15, at

principal only, and exchangeable for fully registered bonds. Coupon bonds payable as to principal
the office of the Treasurer of State of Ohio, in Columbus, Ohio, at The First National

City Bank of New York, New York City, at The Northern Trust

Company, Chicago, 111., at The Ohio National Bank of
Bank, Cleveland, Ohio.

Columbus, Columbus, Ohio, or at The Union Commerce

I : "

relating to registration,
operation or use of vehicles on public highways, or to fuels used for propelling such vehicles. Provision has been made by law and by the
State Constitution for the setting aside of a sufficient- amount of said fees, excises or license taxes each year to pay bond interest and principal

The

principal of and interest

the bonds

are

payable from fees, excises or license taxes, levied by the State of Ohio,

becoming due in that year, without other appropriations.

Yield

Due
»*» n»»n

"!* 9

•

■ ■

;

CI.030.000

1968

1,030,000

1959

1,030,000

1960

5;*

1,030,000

1961

1,030,000

1962

1,030,000

1963

1,030,000

1964

2.25

2.90

100.

1,035,000

1971

2.90

100.

: 1,035,000:

1972

2.90

100.

2.80

1,030,000

23/4

2.85

1.030,000

1969

23/4

1,030,000

1970

2.90

1,030,000

1971

2.90

•

;'5 100;

1963

•

1964

1965

1,035,000:
1,035,000
1,035,000

100.

•2.90

100.

1969

23/4

1968

1,030,000

1962

1970

1967

2. SO

•

1,035,000'

2.40

1,035,000

1.030,000

;

1961

1,035,000"

1966-

1,035,000:

100.

1,030,000

2.85

1965

23/4

2.25

1960

1,035,000
1,035,000

100;

1,030,000

•

2.10

2V2
2%
2%
21/2
2%
23/4
23/4
23/4
23/4

Z./\T

•23/4

1959

'1,035,000

2.65

21/2

1958

2.60-

2.00%

1,035,000*

100.--

21/2
21/2

2.40

.21/2.

$1,030,000
1,030,000

2.10%;.

1957

Price

Rate

Sent. 15

Amount

Price

Pn^e

Yield

Due

;

AMOUNTS, MATURITIES, KATES, PRICES AND YIELDS

:
A

■<*

1,035,000

1966
,

1967

1968

2.60

2.65

2.70
100.
2.80

2.80

•

2.85

•

2.85

•

(Accrued- Interest to be added)

^
■-

•

issued and received by us, and subject to the approval of all legal proceedings
Sanders & Dempsey, Attorneys, of Cleveland, Ohio. Suclt
offering is not made hereby, but only by means of the offering circular, copies of which may be obtained
in any State in which this announcement is circulated, from only such of the undersigned as are regLitred dealers and are offering these securities in compliance with the Securities Laws of such State.

We ojtc-r these bonds when, as and if

/--•

the Attorney

General of the State of Ohio and Squire,

Eastman Dillon, Union Securities & Co.
C. J. Devine &Co.
Baxter & Company

F.W.

Clark; Dod£e&Co./ Carl M. Loek, Rhoades&Co.

L. F. Rothschild&Co.

Craigie & Co.

American Securities Corporation
«

Glickenhaus & Lembo

Harden, Stone & Co.' Shcarson, Hammill & Co. Stroud & Company
incorporated

Spencer Trask & Co.

Hayden, Miller & Co.'

Dempsey-Tegeler & Co.
Butcher & Sherrerd

ZS,

Talmagc & Co.

New York Hanseatic Corporation

Fulton Reid & Co., Inc.

Kormendi &Co., Inc.

1951

King,Incorporated
Quirk & Co.

Charles King & Co.

Dellaven & Townsend, Crouter & Bodine

Courts & Co.

Stern, Lauerfc Co.
March

Cutter, Plummer & Bennett

Joseph, Mellen& Miller, Inc.

Field, Richards & Co.

Wallace, Geruldsen & Co.

•

Freeman & Company

Ladenburg/Fhalmann&Co.

Mackall&Coe

•

Rand & Co.

Blewer, Glynn & Co.

Hickey & Company, Inc.

William R. Staats & Co.
Arthur L. Wright & Co., Inc.

The Commercial and Financial

(1448)

Allied Paper
1006

Dealer-Broker Investment

Corp.—Memorandum—Barret, Fitch, North & Co.,

Baltimore

American

Bosch

send interested

■■■

Upham

11T ill

Energy

Review—Survey—Harris,

Co.,

120

Broadway, New York 5, N. Y.
Atomic Letter (No. 25)—Comments

abroad

program

atomic

including

carriers, official AEC estimates of uranium
demand and supply, South African uranium ore reserves,
and items on Newport News Shipbuilding & Dry Dock Co.
and Foundation Company of Canada—Atomic Development
Mutual Fund,
Inc., Dept. C, 1033 — 30th Street, N. W.f
Washington 7, D. C.
View

-—

Monthly

investment letter

—

Burnham

Company, 15 Broad Street, New York 5, N. Y.

and

Also avail¬

able is current Foreign Letter.

ing market

news

and

comment—10-issue

trial

cover¬

subscription,

$5—Stock Market News & Comment Ltd., Securities Advisor,
No. E, 80 Richmond
Street, West, Toronto, Ont., Canada.

Canadian

Banking

Finance—Discussion—E.

and

Saunders

Limited, Victory Building, Toronto 1, Ont., Canada.
Canadian

Economy—Monthly review—Bank of Montreal, Mont¬
Canada—New York office, 64 Wall Street, New

5, N. Y.

Armco

Co.,

Ltd., 25 Adelaide St., W., Toronto, Ont., Canada.

$4.50 for six months—specimen
and

Participating

copy

Securities

Stock

Baxter

Laboratories, Inc.

bulletin

Insurance Stock Analyzer

International

Utilities Corporation.

Comparative data — Blair & Co.,
Incorporated, 20 Broad Street, New York 5, N. Y. Also avail¬
able is an analysis of United Insurance
Company of America.

Japanese Stocks

—

Current information

—

Yamaichi Securities

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

Bendix

Aviation

Also available is the 1957 Fact Book with
data
tions of the Exchange

the opera¬

Community.

Minerals

Beneficial

—

Street,

15, N. Y.

Over-the-Counter Index—Folder
showing an up-to-dateparison between the listed industrial stocks used in the

com¬

DowJones Averages and the 35
over-the-counter industrial stocks
used in the National Quotation
Bureau Averages, both as to
yield and market performance over a

13-year

National

York

Quotation
4, N. Y.

Bureau,

Inc:,

Front

Resources of British
Columbia—Information

period

Street,

power,

New

trans¬

portation, basic industries, plant sites,
etc.—Government of
the Province of British
Columbia, Parliament Buildings, Vic¬
toria, B. C., Canada.
Savings and
United

Loan

Association Offices
Study of
States and Possessions as of Dec.
31, 1955
—

Chain

Home Loan Bank
Board, 101
ington 25, D. C.

—

Memorandum

Corporation

—

offices

Analysis

—

Indiana Avenue, N. W

Wash¬

Treasure Chest in the
Growing West^-Book
describing indus¬
trial opportunities in the
area served—Utah
Power & Light
Co., Dept. K, Box 899, Salt Lake
City 10, Utah.

May 8-11, 1957

Conklin

Organi¬

Spring
brier

...

ciation

Co.

Williston

&
a

Co.,

115

bulletin

Insurance

Company

circulars

are

The

General Electric

—

Circular

Wm.

Federal

—

National

Mortgage

Great American Life Underwriters,

Company

—

Annual report

General Outdoor

—

Mines, Ltd.—Analysis—Sutro Bros. & Co.,

Stern

120 Broad¬

New York 5, N. Y.
—

Circular

—

Scharff

Street, New Orleans 12, La.

Mortgage

Co.—Memorandum—Bankers

Circular—New

York

Hanseatic

Corporation, 120 Broadway,

Report — Amos Treat
Street, New York 5, N. Y.
—

Co., Inc., 79

& Haas
Analysis — Kidder, Peabody & Co., 17 Wall
Street, New York 5, N. Y
—

Brosius—Report—Hayden, Stone & Co., 25 Broad Street,
York

4, N. Y.

June

Drayton Streets, Savannah, Ga.
W. A.

Shell

and

•

Municipal
Bond
Group annual spring
at Sheraton Gibson and

the Maketewah Country Club.
June 14, 1957

Municipal

(New York City)

Bond

Club

New

day at West¬

chester Country Club and Beach

June

19-20,

St.

1957

(Minneapolis-

Paul)

Twin

City

Bond

Club

annual

outing and picnic with cocktail
party at Hotel Nicollet June 19
-»«'and

all

the

day sports

White

White Bear

program

Bear Yacht

Club,
Lake, Minn. June 20.

Sept. 25-27, 1957

(Santa Barbara,

Cal.)
Investment Bankers Association
Fall

Meeting at Santa Barbara

Oct. 7-8,1957 (San Francisco, Cal.)
of

Stock

Exchange

Firms Board of Governors meet¬

ing at Mark Hopkins Hotel.

Sheaffer Pen
Salle

Co.—Study—A. C. Allyn & Co., 122 South
Street, Chicago 3, 111.

Transport

Trading—Report—Osborne

Thurlow, 39

Broadway, New York 6, N. Y.

Sinclair Oil Corporation—Annual

Oct.

report—Sinlclair

1957
of

(Los
Stock

Angeles,

Exchange

Oil Corpora¬

ing at Beverly Hills Hotel.
Nov.

3-6, 1957

(Hot Springs, Va.)

National Security Traders Asso¬
ciation
Annual
Convention
at

the Homestead.
Dec.

1-6,

1957

(Hollywood Beach,

Fla.)
Investment Bankers Association

Trailer

Ferry, Inc.—Study—General
Street, New York 5, N. Y.

Twentieth

10-11,

Calif.)
Association

Firms Board of Governors meet¬

Shulton, Inc.—Analysis—H. Hentz & Co., 60 Beaver
Street, New
York 4, N. Y.
; /
•
• •

and Beyond"

(Cincinnati,

Dealers

Association

Scripto—Memorandum—Johnson, Lane, Space & Co., Bay

Wall

—

1957

Biltmore.

Schering Corporation—Analysis—Vilas & Hickey, 26
Broadway,
New York 6, N. Y.

TMT

Atomic Age

13-14,

Ohio)

ham, Ala.

Beryllium—a strategic "Metal for the

Jasper
Lodge, Alberta, Canada.

Park

Prophet Co.—Bulletin—Georgeson & Co., 52 Wall
Street, New
York 5, N. Y. ! •

New

Investment Dealers' Association

Club, Rye, N. Y.

5, N. Y.

Pennsylvania Railroad

Salem

Analysts Societies.

Bond

Co., Kentucky Home Life Building, Louisville 2, Ky.
Metropolitan District, Hartford County, Conn. Water Bonds—

Rohm

Green¬

11-14, 1957

York annual field

Louisiana State Building Authority Bonds
& Jones, Inc., 219 Carondelet

Wall

ment

June

party

—

Title

the

Cincinnati

General Electric

Advertising
Bulletin — Herbert
Co., 52 Wall Street, New York 5, N. Y.
way,

meeting

Hotel.

May 19-23, 1957 (Cleveland, Ohio)
National Convention of Invest¬

Asso¬

Inc.

Company, Dept. 2-119 E, Schenectady, N. Y.

Gunnar

(White Sulphur

of Canada Convention at

Tegt& Co., 39 South La Salle Street, Chicago
3, 111. Also
and

Exchange

Charles Pfizer.
Life

Stock

Investment Bankers Association

Capwell—Analysis—Dean Witter & Co., 45 Mont¬
Street, San Francisco 6, Calif. Also available is an
Corp.—Bulletin—J.

ing at Jefferson Hotel.

Inc.—Memorandum—Dewey, King &

analysis of Friden Calculating Machine

(Richmond, Va.)

Association

Springs, Va.)

tion, 600 Fifth Avenue, New York 20, N. Y.

May 6-7, 1957

Firms Board of Governors meet¬

Southern Natural Gas Company — Annual
report — Southern
Natural Gas Company, Dept.
FC, Watts Building, Birming¬

DEALERS—

the Waldorf Astoria.

Company, Inc.,

Johnson, 64 Wall Street, New York 5, N. Y.

Franklin

Hilton

Security Traders Association of

zation, 100 Broadway, New York 5, N. Y.

Quigan

annual

Statler

V New York 21st annual dinner at

Continental Motors Corp.—Bulletin—De Witt

Fedders

the

„

Analysis — R. S. Dickson
Building, Charlotte 2, N. C.

Emporium

April 26, 1957 (New York City)

Laird, Bissell &

—

Life Insurance Company—Study—Robert
Co., 210 West Seventh Street; Los Angeles 14, Calif.'

Stores

Wilder

Investment

—

York

Federal

meeting

Belt

Colonial

Association

Hotel.

Co.—Memorandum—Hirsch & Co., 25 Broad Street,
4, N. Y. Also available are memoranda on Shell
Transport & Trading Co., Ltd. and United Gas Corp.

La
—

Smyth,

(Dalla#, Tex.)

Group

Bankers

Invest¬

Association "an¬

nual conference at Drake Hotel.

Texas

Bullard

Group

April 21-23, 1957

Standard

H. Huff &

New York

Development in Latin America
"Latin-American
Business Highlights"—Chase Manhattan
Bank, 18 Pine

New York

Co.,

Meeds, 120 Broadway, New York 5, N. Y.

Louisville

Language of Investing: A Glossary—New York Stock
Exchange,
11 Wall Street, New York
5, N. Y.—Single copies on request.

Field

(Chicago, 111.)

States

Bankers

ment

Armco Steel

—

27-28, 1957

Central

Doyle, O'Connor &
Co., 135 South La Salle Street, Chicago 3, 111.

available

Purchase

Warrants—Study of issues in these categories available in the
market—McLeod, Young, Weir & Company, Limited, 50 King Street, West, Toronto 1, Ont., Canada. Also
a

report

March
—

Broadway, New York 4, N. Y.

meyer

request.

and

Canadian

available is

1956 annual

—

Broadway, New York 6, N. Y. Also available is

Canadian Mining Industry—Newspaper
covering mining indus¬
try — The Northern Miner, Toronto, Ont., Canada — $7.50 a
year,

Corporation

Baldwin-Lima-Hamilton—Analysis—Filor,

gomery

Canadian Investment Stocks—A list of stocks most selected by
investment trusts and mutual funds—Draper Dobie &

Investment

Co., 120

Tiling Company Inc. — Annual report
Encaustic Tiling Company, Inc., Lansdale, Pa.

Steel

Convertible

Walston &

Encaustic

Eastern Shopping Centers,

real, Que.,
York

—

Company—Analytical brochure—McDonnell
Broadway, New York 5, N. Y.

New

Canada's Treasure House of Minerals and Oils—Service

■

EVENTS

aircraft

Burnham

Memorandum

Corporation, Middletown, Ohio,:

expanded atomic power
Euratom, naval program for six

COMING
In

—

Anaconda
120

Atomic

Mo.

Broadway, New York 5, N. Y.
American

parties the following literature:

Kansas City

1957.

American Cyanamid Co.

American

will he pleased

firms mentioned

understood that the

It it

Avenue,
Arma

Corp.—Bulletin—Bache & Co., 36 Wall
Street, New York 5, N. Y. Also available is a bulletin on
Warner Lambert and a discussion of the outlook lor Public
Utilities in

Recommendations & Literature

Chronicle«.. Thursday, March 28, 1957

Century-Fox—Bulletin—E.

Investing Corp.,

Annual

Convention

Holly¬

wood Beach Hotel.
Hutton

Company,

Broadway, New York 6, N. Y.

Oct.

29-Nov.

1958

(Colorado

Springs, Colo.)
National Security Traders Asso¬
ciation

Beryllium Corp.

Are Your Records

Brush Beryllium

Bought

—

Incomplete?

Annual

Convention

the Broadmoor.

"FOR SALE"

DEPENDABLE MARKETS

A Number of Beautiful

Sold
Annual

Bound

Sets

of "CHRONICLES"

Various Dates From 10 to 50 Years

TROSTER, SINGER
Members: N.

Security Dealers

Trinity Place, New

CO.

Available in New York City—Write

^Association

York 6,

Phone

N. Y.

REctor

2-9570

c/o

Edwin

Beck

Chronicle, 25 Park PI. N. Y. 7

DEMPSEY-TEGELER I CO.

Volume 185

Number 5624

...

The Commercial and Financial Chronicle

(1449)

Texas Group of IBA
To Hold 22nd Ankual

Convention April

21-23

Beane, Dallas; Jack Munger, Golf; Corporation,
San. Antonio, exWith Boettcher & Co.
Keith Reed & Company, Dallas. officio; Milton R. Underwood, Un¬
(Special to The Financial Chronicle)
Ladies Reception — Mrs. R. B. derwood,
Neuhaus & Company,
DENVER, Colo —Bartle H. Day
Smith, Mrs. Lewis F. Lyne, Mrs. San Antonio, ex-officio* William
C. Porter, Dittmar & Company, has become connected with Boett¬
Taylor B. Almon.
Seven¬
Members of the Executive Com¬ San Antonio, ex-officio, and R. B. cher and Company, 828
teenth
Street, members of the
mittee
are:
Taylor B.
Almon, (Brud) Smith, Keith Reed and

PALLAS, Tex. — The Texas Rauscher,
Pierce
&
Company,
Group of the Investment Bankers Pallas, Chairman; Earl G. Fridley,
Association of America will; hold
Fridley, Hess & Frederking, Hous¬
their
22nd
Annual
Convention
ton, and John P. Henderson, M. E.
April 21-23 at the Statler-Hilton Allison & Company, San Antonio,
Hotel in Pallas.
Vice-Chairmen; Dean P. Guerin,
The program for the meeting is
Eppler, Guerin & Turner, Dallas,
as- follows:
\
Secretary-Treasurer, and R. R.
Rowles, Rowles, Winston & Com¬
:
Sunday, April 21
;
pany, Houston; William F. Parvin,
I
2500-6:00 pm. — Registration,
Austin, Hart & Parvin, San An¬
-

Company, Dallas, Executive Sec¬
The

New

Group in making the

an¬

the

for

nouncement

program

the Convention have issued

ries of

With Eastman Dillon

(bottled in)

bonds hand¬
somely engraved, with the list of
various

attached

events

form of coupons.

~..:

~ /

merly officers of Gross, Rogers &
Co., have become associated with

V(Special to The Financial Chronicle) .

*' j

6^50-9:00 p.m.

are

CHICAGO, 111, — Donald R.
Dwyer
has ,u become associated

Company/ 647

Joseph

California

William G. Cuppa, James

Edgerton, Jr., George R. Frost,

Eastman

Dillon, Union Se¬
curities & Co., 135 South La Salle

Puma,

Lathan, Herman J.

Street.
He was
formerly with
tonio; Wesley Hickman, Schneider,
DENVER, Colo. — Francis E.
Cocktail Party,
Bernet &
Perrin is now with Columbine Bache & Co., and Fairman, Harris
Hickman,
Pallas;
W.
City Club, Adolphus Tower Build¬
Securities Corp., 1780 South B'dwy.
ing; Pallas Security Dealers Asso¬ Wallace Payne, First of Texas
ciation, hosts.
'•••,
a

California

South Spring Street.
Also joining the First

with

With Columbine Sees.

Ground. Floor Lobby.

(Special to The Financial Chronicle)

LOS ANGELES, Califs-Nelson
B: Gross, Jack B. Rogers, Henry
Marin and J. Ellis Dion, all for¬

staff

the

i-..

was

First CaSftroia Co.

First

se¬

York

Stock Exchange. Mr.
formerly with Invest¬
ment Service Corporation.

Day

retary.
-

trass, Rogers Nm MS

William

—

Mohr,

who were all

previously with Gross, Rogers &
Co.

•

Monday, April 22
10:00 a.m.—Ladies

only—Cham¬

New Issue

Brunch and Style Show,
Zodiac Room; Neiman-Marcus.

pagne
*

10:00 a.m.—General Session and

Open

Meeting,

Business

Ballroom

Welcome

—

Junior

Pro¬

and

,000,000

claiming Pallas "invest in America
Week"; Honorable R. L. Thornton,
Sr., Mayor.

■■■

;

10:15

Commonwealth of Puerto Rico

a.m.—Address, Robert H.

Craft, The Chase Manhattan Bank,
New York City, President, Invest¬
Association

Bankers

ment

'America.
*

10:45

vf;'..aa

—-

;by Chairmen:

Education Committee—Hugh D.

General

obligations, for the payment of which, both principal and interest, the
good faith and taxing power of the Commonwealth of Puerto Rico are pledged•

Dated January 1,1957. Principal and semi-annual interest (January 1 and July 1) payable at The First National City Bank of New
or at the office of the Government Development Bank for Puerto'
Rico, San Juan, Puerto Rico. Coupon Bonds in

Dunlap, Goodbody & Company,
Dallas, Texas.
Municipal Securities Committee
—Eugene D. Vinyard, Central In¬
vestment Company, Dallas, Texas.
Committee—

Relations

denomination of SI,000, registerable

Public

Improvement Bonds Series A

■:

Address, Sinclair
Armstrong, Chairman of The Se¬
curities and Exchange Commis¬
sion, Washington, D. C.
11:00 a.m.—Committee Reports
a.m.

Public

A ;
■

Fridley, Fridley, Hess &

Frederking, Houston, Texas.
Legislation Committee—Chas. C;
Pierce, Rauscher, Pierce & Com¬

Dallas, Texas.
Membership Committee — Ed¬
D. Muir, Muir & Company,
San Antonio, Texas.
Report by Municipal Advisory

Acceptable at

pany,

Council- of Texas—W.

par as

Security for Public Deposits and Eligible to
Postal

E. Tinsley,

—

Amount

Due

$250,000

1958

Election of Officers:
12:30-1:15

p.m.—Cocktails, Jun¬

ior Ballroom.
1:15-2:45 p.m.

—

Luncheon, Jun¬

ior Ballroom.
Principal Speaker,

Professor

Backwards.
;

Deposits of

secure

Savings Funds

Prices

Nominating Com¬
mittee Report — Wilbur Freder¬
king, Chairman, Fridley, Hess &
Frederking, Houston, Texas.
p.m.

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICES

Executive Director, Austin, Texas.
12:15

or as to both principal and interest.
reconvertible into Coupon Bonds.

ward

principal only

to
are

York

*Exemption from Federal, State and Local Taxes. The following is an excerpt from the United States Code Annotated
(Title 48, Chapter 4, Section 745): ".
and all bonds issued by the Government oi Puerto Rico, or by its authority,
shall be exempt from taxation by the Government of the United States, or
by the Government of Puerto Rico or of any
political or municipal subdivision thereof, or by any State, Territory, or possession, or by any county, municipality, or
other municipal subdivision of any State, Territory, or possession of the United States, or
by the District of Columbia."
.

Earl

Fully registered Bonds

-3:00-5:00 p.m.—Optional Inspec-

tion, Tour of Dallas-Fort Worth
; Turnpike. Host, Texas Turnpike
Authority, J. C. Dingwall, Secre-

Coupons

Yield*

Yield

Amount

2.60%

5% :

Due

$400,000

1966

Coupons

3i/2%

Price

3.45%

250,000

1959

2.80

500,000

1967

3y2

250,000

1960

3.00

500,000

1968

3»/2

250,000

1961

3.10

500,000

1969-70

31/2

3.55

400,000

1962

3.20

500,000

1971

31/2:

3.60

400,000

1963

3.30

750,000

1972

3»/2

3.60

400,000

1964

3.40

750,000

1973

3.70

3.65

400,000

1965

3l/2

3.40

750,000

;■

:/.V
o'/:

ea. yr.

1974-77

3.70

100 (price)
100 (price)

100 (price)

A'(Accrued interest to be added)

tary-Treasurer.

7:00

p.m.

—

Western

Party,

Bonds maturing after

Building,
State Fair
Grounds; dress, western and in¬
formal.
Entertainment, Bobbie
Womans

of %

the stated

band, and The Commodores.

in part in the inverse order of

maturity date of such bond.

The above Bonds are offered, subject to prior sate before or after appearance of this advertisement, for delivery
when, as and if issued and received by us and subject to the approval of legality by the Secretary of Justice of the
Commonwealth of Puerto Rico and Messrs. Mitchell, Pershing, Shetterly & Mitchell, Attorneys, New York City.

Tuesday, April 23
Field

July 1, 1969, subject to redemption, either in whole

numbers, on any interest date not earlier than July 1, 1969 at par and accrued interest plus a premium
of 1% for each twelve months' period or fraction thereof between the date fixed for redemption and

his RCA recording

Williams and

their

Day—Brook Hollow Coun-

try Club.

8:00

a.m.

On—Golfers

Starting

Times.

The First National City Bank of New York

11:00

p.m.—Cocktails

a.m.-2:30

Chemical Corn Exchange Bank

Lehman Brothers

and Luncheon.

2:30-5:30

p.m.

—

Bridge,

C. J. Devine & Co.

Gin

B. J. Van Ingen

& Co. Inc.

Merrill Lynch, Pierce, Fenner & Beane

Rummy, etc.
-

7:30

p.m.-l:00

a.m.

and Dinner Dance;

—Cocktails

formal. Music,

Skinny Ennis and Orchestra.
tertainment, Fran Warren,

quita and Johnson, Candy
Members

the

En¬
Chi-

ment,
i

Convention

I
--

are:

Mercantile National Bank
Dallas; Morris A. Dud¬

at Dallas,

ley,

Jr.,

Pierce

Popular de Puerto Rico

F. S. Smithers & Co.

Kean, Taylor & Co.

and Company,

Dallas; W.

A. C. Allyn and Company
C. F. Childs and Company

Incorporated

F. Brittain

Kennedy & Co.

The First Cleveland Corporation

Janney, Dulles & Battles, Inc.
March 27,

1957.

Seasongood & Mayer

Andrews &

Wells, Inc.

Stifel, Nkolaus & Company

Lyons & Shafto

Park, Ryan, Inc.

Mercantile Trust Company
St. Louis

Braun, Bosworth & Co.

Incorporated

Registration, Rauscher,

perry McPherson, Transportation,
Merrill Lynch, Pierce, Fenner &

Lee Higginson Corporation

Incorporated

Candido.

Lewis F. Lyne,
General Chairman, Mercantile Na¬
tional
Bank
at Dallas,
Dallas;
Clarence E.
Sample, Entertain¬
Committee

Banco

Lakeside Securities Corporation

Indianapolis Bond and Share Corporation

Odile Ki

Lofgren and

Prescott & Co.

The Commercial and Financial Chronicle

(1450)

significantly, in relation to
payroll.
These two dif¬

Social Security Benefits: Cost
Of Today's Plan Tomorrow
Security

the

financing the present

program

looking

ways

because

will

costs

the

have

adjustment

upward
tion

the

likely

latter

would

discuss. The

that

of action under such

course

On the other hand,

costs

benefit

the
to

high

hold

benefit

the

did

than

most

in that many

interpretation

of those in the popu¬
lation aged 65 and over retired or

were

broad

meaningless.

"security

the

benefits

schedule

tax

program

all

figure in

excess

economic

for

security under governmental

au¬

se¬

methods

financing

benefits.

only

general public, however, does not

also

often

the term to include such

use

unemployment insur¬

programs as

workmen's

«and

ance

compensa¬

tion, but rather limits application
to the Old-Age, Survivors, and
Disability Insurance program un¬
der the Social Security Act.
Ac¬
cordingly, mv remarks will be
confined

the

OASDI

program.

plan

order

safeguard

the
em¬

ployee'!

This

ness.

essential,

should

perhaps

not

been

background

sufficient

finance

the

Cost Consciousness

closing, I should like to em¬
phasize
one
I extremely
strong
point of the OASDI system insofar
,

of as sound management and longis -range planning are concerned. It
-is .quite fortunate that over the

for

perhaps be-years there has been, such a-strong

may

cost-consciousness

on the part of
been directly concerned with the operation of the

all

In the past, contribuhas

materially

benefits

who-have

social security program. This ex¬
tends not only to the agency of
the executive branch of the gov-

ex-

but;the gap

rapidly closing.

calendar year,

In the

that

ernment

contributions

has

this

direct

re-

only about-.sponsibility, but also, and quite
Looking at it another way, .importantly, to the Congressional
income
including interest committees dealing with social se-

10%.
total

exceeded

those*

total

administrative

including

outgo,

only

expenses,

In absolute terms,

the

Tvvo Trust

Funds

that

reason

flexible

since

the

as;' to

any

costs that

for

be used

can

This

liberalizations.

pensions

security.
In

without

corresponding

contributions

feature.

result

rise

•

liberalizations

accompanied

have

increases

basis

Amendments

basis

even

the

this

the

the
on

the

then enacted

affect

Trust

restricted.

With

cial basis,

be so

adversely the
Accordingly,
out
the
new

pavs

responsible attitude and
analysis
continuing,
it

that our social security program in all the "tomorrow
to come" will be on a sound finan-

Fund.

fund

the

seems to me

disability

could

reduced

very

careful

1956

the argu-

answer

Connecticut Plans

increased

Turnpike Bond Sale

employer-employee
\k% for all future

State Treasurer John

Ottaviano,

ye^SjAA=arn4,ele??nt0,this fund- Jr?*announced" March *25 that°the
T
?™,?e4qUj;-]rU
nS-I c??"-Expressway Bond Committee has
.

*."»■ about. ?23.bJhon,_whiIe the

Insurance

*1954

just

immediate

started

Fund

•

operations

scheduled

has

and

meeting for Thursday,
sale date

Mar. 28, to discuss fixing a

cqn'noo

nnn

Fxnrp^wav Bonds

fhTfinaLi

relatively small at the moment. As

in the 1956 Amendments,

established

made—based

else the benefits that would
have seemed desirable to provide

contribution of

bemi

contribution schedule—either
deferred

this

were

.monthly disability benefits, while

On tbe other hand, some

benefit

were

ability
benefits.
The
separate
Disability Insurance Trust Fund

in *-the
-this

margin,

the

—or

OASI

instances

several

vivor benefits and another for dis-

benefits

past, benefits have been increased

in-

best available actuarial estimates

trust fund

one

ment that the cost of the

„

costs

examination,

merely

past, but rather two.;There is one
trust fund for old-age and sur-

supplement social
high
■
-7

such

invariably the necessary financing
provisions,' within a' reasonable

Amendments. to

important matter to keep in
mind in connection with planning

very

increased

Upon

Vln the future, in considering the
financing of the social 'security
system,, we have to consider not

was

is *a

resulting

.volved.-

propor¬

system

benefit

procedure is not

same

and

course,

this

levels

certain

busi¬

c«ase

the

and

generalities

benefit outgo

exceeded

tive cost or, in other words, frees

comolete

beneficiaries and the covered

income

past

inflation
of earnings levels lowers the rela¬

liabilities of his

the

has

benefit

that

such

for

benefit

type of employer or
employment involved. A private
em plover
must of necessity pro¬

earnings.

OASDI

the

funding

This

years.

tion

ceeded

has „rer_

alone

reduction

are,

long-range

eventual

have

Private Pension Considerations

certain extent these

the

rates

1960

present program without need for

likely experience in the next

five

earnings falls, whereas contri¬

tional to

depend not
the size of the group but

for

wage

decades

scheduled—will, if carried

further taxation,

different methods may

vide

the

significantly.

formula,

butions

tirement plan? We must recognize
that
there
are
various
sound

such has been wide¬

out,

ahead

secur¬

imme¬

of 90%.

ly used throughout the world since
its origination in the United States
more than two decades ago.
The

spices, and

diately
others

one

curity legislation. Although these
committees have in general exhowever,'amined the benefit and coverage
tively larger benefits than those
this
18%
was
a
rather
sizable
with higher earnings, so that as
sum,
provisions first, they have never
failed to consider just as carefully
earnings rise the benefit relative namely about $1 billion. *
i
'■

—Perhaps the most basic question
only physical and mental but even of all is what do we mean by the
/spiritual. As the term is commonly cost for the social insurance sys¬
used,
in its
broadest sense it tem or, for that matter, of any re¬
measures

uled increases in the social

interest to this audience—

or more

18%.

mankind—not

connotes

too/ much

considering what

five-year
likely that the

ity tax rates—both the

use up the sav¬
ings that appear to be present/ - Perhaps up to this point, I have

necessary

with lower earnings receive rela¬

hence, this proportion will rise to

J. Myers

Robert

activities of

two

considered

benefit

Several decades

employment.

lead it to en¬

too

about the long-range financing
it' the program.
This, I believe,

to-

each

successful demand for increased

dealt

dollars, but
in comparison with payroll.
The
reason
for this is the weighted

substantial gainful

tirement from

practice,

past

quite

suited

would be receiving them upon re¬

whole

society" would
compass

the

under

turn

estimated,

costs—not in terms of

curity coverage became available.
At the present time, about 60% of
the aged population are receiving

Rephrased as
t he

social

before

widowed

the

factor

private pension plans.

Yet, there are elements of deferral

to be virtually

not

actual

risen,

character

X<hrase "social
.•security" in its

general

In
over

this, the system has much less
deferred

not

benefits that will

possible to increase benefits
without revising the tax schedule

the

circumstances.

out

relatively few years of con¬
tributions. In certain respects such

only

for—

called

after

benefits

maximum

for

should

decreases

a magnitude considerably above that now
prevailing.. It is therefore my considered opinion that the sched-

ulti-

Accordingly, any' sharp rise in
contribu-' earnings levels will likely produce

political standpoint; prob¬

ably

would

rates

from

who
know individuals who have quali¬
fied

certainly

possible
close

period—it appears
Trust Fund will grow to

ward adjustment in benefits or an

bit strange to those of you

mately.

and

Thursday, March 28, 1957

the

ward

taxes

lower level.

management procedure
-always involves a careful delineadon of the problem or the field of
activity. This is equally true of
the
topic

future

near

—despite

favorable

imposed for sanguine on counting too much
the support of the system.. If the on cost savings due to rising earn¬
benefit experience is such that the. ings because such savings result
cost materially exceeds what had only from what is in effect a rela¬
been estimated,
either a. down¬ tive devaluation of the benefits.

without need for further taxation

Sound

the

direct

in cost that might
higher earnings levels

from

operating experience
must
be
paid
for
by
higher tax rates—possibly in the

under

thesis,

self-supporting

effect,

costs,

not as dissimilar as

thought

benefit

Administration,

Chief Social Security Actuary terms our present Federal system
neither fully-funded nor pay-as-you-go but rather somewhere
in between. Mr. Myers describes the present benefits, including
the new Disability Insurance Trust fund which is separate from
the old OASI fund; -emphasizes factors that should be con¬
sidered in integrating private pension and disability planning;
and despite expectations of approximate crossing of income
input and outgo benefits sometime between 1957-1959 and at
approximate five-year intervals, believes that adherence to
scheduled rate increases will, after 1959, make possible

■*

ferent

might

Department of Health, Education and Welfare

II. S.

Social

arise

however," are

By ROBERT J. MYERS*
Actuary,

Chief

savings

any

covered

the OASI Trust Fund, it

Turnpfke

seems

the
Connecticut
The
•when
disability
benefits
were
governmental plan
added.
*
"
:'7
STh rme Treasurer said that the Committee
narrows
down tbe discussion to whose existence can safely be pre¬
m
f"n
u
In considering the effect of so¬ income
the question of future costs. The sumed to be perpetual. Of course,
will
fan
below, h?-"J
benefit has Previously informally agreed
on
^ertain changes in the bond
specific phraseology involves the this is no license for financial ir-. cial security on. private pension
ii??/
i.s veiy
terms which should be attractive
plans, it is essential to-keep in •will
i
occur in 19o7, quite-possible
question of tomorrow's costs. This responsibility. •
t
investor*
Is a relative matter and undoubt¬
mind the lesson of history that that it will Occur in 1958. and it.
;
invesiols•
XT"
Congressional Policies
frequently when social securitv is almost certain to occur in 1959.
edly we are not referring to "to¬
-1®, contemplated that tpe
have
morrow" as being 24 hours hence
been
increased, ■In I960, however, the scheduled. Third Series Bonds will first be
The clear Congressional intent benefits
The title I have chosen

further

desirable, for

-hhfnf?3/" that 31
'

unlikelv that this.

system should, there were corresponding changes [increase in the contribution rate optionally redeemable Jan. 1,196o,
in the tax schedule. It almost goes will
self-supporting
probably swing the balance eight years from their date.
-,
the
views
of
many
theologians from contributions of employers' without saying too that one should /the other way. Furthermore, the
Another change is the division
that the seven days of creation and
look not only at the social secur¬ effect of the interest
workers—or
taxes, if you
earnings will for
financing
purposes
of
the
were not merely the 24-hour days
prefer to use that equivalent term ity tax this year, but also the quite likely result in a positive Turnpike into two sections by the
to
which
we
are
accustomed. —and the interest earned bv the amount eventually provided
for net income to the fund in 1958 and Connecticut River with a priority
Then,* too,
tomorrow
does
not fund. In other words, there is not in present lmv. In the initial leg¬ quite likely also in '959. although established for the permanent fibut

row

rather

—

long-distant

paralleling to

tomor¬

some

extent

that

be'

the

OASDI

completely

to us only what it did to the
prudent ant in Aesop's fable—let

mean

alone

the

grasshopper — because
#?ood management necessarily in¬
volves
the

long-range consideration of
cost impacts
of a deferred

benefit

program,

pension plan

private

OASDI.

cost

only

business

many

studies
a

need

sufficient

look

for

ahead
no

retirement

All actuarial valuations

—either

implicitly

consider

the

develop

over

explicity—

experience that will
the

half

cen¬

so—and, in fact, in many
cases into
perpetuity. In this re¬
spect the OASDI program is no
exception, because although costs
or

be predictable with great
exactitude, it is certain that they

may not

will

rise

for

many

years

the

future.

the

OASDI

has been referred to
benefit system.
•Ail

address

as a

system

deferred

This might sound

by Mr. Myers before the

(Employee Benefits and Pension Planning
Conference, American Management Asso¬
ciation, Chicago, March 12, 1957.

islation of the 1935 Act, the com¬
bined employer- employee rate

contribution

general Treasury.

This

to begin at 2% and was to rise

fund

conceivable

that

might

have

then

the

nancing of the section west of the

Connecticut River.

small

This will not

policy, however, is by no means a
full description of the financing

was

gradually to an-.ultimate-level''HI

Disability
Insurance affect the construction
Trust- Fund, on
the other hand,, of the eastern section,

method.

will almost certainly show an

In addition, Congress has

provided

that

contribution

the

schedule should

be an increasing
rising from the present com¬
bined employer-employee rate of

ultimate rate of 8 42%

in 1975 and thereafter.

neither

nor

-a

rather

trust
as

basis

pay-as-you-eo

does

not

contingency

but

between—

the

nearer

fund

The result

fully-funded -system

somewhere

probably

The

latter.

merely serve
but is

the

deficiency

arising

from

,the

of benefits outgo over con¬

tribution

income -in

future.

distant

the

tax

management and labor

concerned,

security

can

rates

From

however,

the cost

social

well be said to be the

specified

actuarial

the

cost

the

law.

standpoint,
the

system

really is the benefit disbursements
—either

come

outgo

over

and it

opment

law

ments

of in¬

excess

large fund

not

was

scheduled

increase

the

has

rate-went

various

occurred

3% .in

amend¬
that

the

-1950, 4%

1954, and 442 % in 1957.
Ultimate
But what
ultimately?

after.

dollars,

or,

perhaps

-.The

The

least the

as costs
will be/ temporarily fioutgo for at naneed * by
general .obligations
five'years.
notes of the State.
However, no

original
Act

6V2%
Act

in 1975.

What

does this

schedule.

all

set

the

1970,
uooed
this

The legis¬

re-

sup-

near

fu-

long-range stand-point, it is* not serious if the OASI
a

were

the

:to decrease to
one year

few

Expressway Bonds will be issued
the eastern section until all

* for

of the tax

beings sufficient to

From

costs of the western section have

been

permanently3 financed

and

provided-that independent engi-have again es-»
tablished that the entire Turnpike,
including the / eastern section,

neers - estimates,

would

self-supporting

revenues.
It
A third

to the

from

change is a covenant
financing any other exbe merely a- temporary downward pressway by issue of Expressway
movement that would-be offset by Bonds,
thereby in effect estabthe scheduled quinauennial rises lishing a closed-end lien to prein the tax rate. In fact, the long- vent
dilution of Turnpike rev-

rate ..would

legis¬

mean

port the program in the
ture?

;

Self-Financing

gard to the likelihood

next "an

the. tax

ex-: thereof

Will

program

over

slight extent from

Rate

1950

1954

figure to 8%

income

Trust Fund

6% rate in 1949

rate

the

Tax

is to be

lation called for
and

cess

The

substantial,

was

Since 1949,- every con¬

necessary.

the

1949—

drop.

argued that the devel¬

was

tribution

while

Two Views of Cost'
as

largely because the

ultimate

(

As far

In actualitv. tbe 2%

"frozen" through

was

provide in¬

terest, which is to b° used to meet
excess

rate

by 1949.

reserve

intended to grow and

are

Previously,

subsidy

the

41i>% to

purposes,

few years, but this is by

means

systems.

tury

be any

from

one,

Tomorrow's Costs
For

range

seem

years.

likely that this would

cost estimates indicate that

against

Previously, it would have

enues.

toward the close of

each.five-year b
the future, the income

permissable

pool

the

lation last year provided a further

period

boost

and outgo curves under the OASI

Turnpike revenues with revenues

portion of the

of any other toll road which might

8^2%.

is, of course,
impossible to predict whether this
figure with be raised by subse¬
Under the selfsupporting theory, however, it is

cross

program

come

quent legislation.
obvious

that

cannot

anv

liberalizations

financed

through

five-vear

sizable

period, there

excess

will either

crossing,

*n\ KCXn
will be a

income

over

outgo. Accordingly, over the years

financed

the

future.

The

new

provision
will make it neces*.

sary

for any such future toll road

„

to be independently financed.

Volume

5624

Number

185

;

The Commercial and Financial Chronicle

(1451) * 11

disinflation " which

Strikes and

Sterling

low $2.78 within the next three
months, or ever* within the next

result

by the beneficial effect of the" failure
industries in

middle

there

March

the

Eng.-—Towards

LONDON,

was

general.

tivity.
'

developed

...

the shipbuild¬

industry,

ing
and

the

writ¬

time

ing, a strike in
the

engineer¬

industry
appears to be
ing
i

n e v

i t able,

seems

Dr.

Paul

there

while

Einzig

gold

both

fully

and

merely

dead/

postpone¬

far
shipbuilding is concerned, the
delay
caused
by
the
strike- is
Moreover,

liable

divert

orders

Japan

and

Germany, with detrimental
effect on long-range prospects/ *'
We must consider, however,
side
are

the

production but

strikes

Unless

also consumption.
early
settlement * is
millions of workers and

reached,
their

the
The

picture.

liable to affect not only

will

dependents

manage

spending

have

drastically

power.

to,

reduced

This would affect

the volume of imported food, raw
materials
and
manufactures.Itwould also release
an

goods for

export drive by industries not
by the strike. The dif¬

affected

ficulty of selling in the domestic

justification for

be less

seems

understandable, there

the fall in Government loans and
interest

fixed

other

curities,

bearing

se¬

for the depreciation of

sterling. There is no reason why
the widespread strikes should lead
to a rise in. interest rates. .On the

well'

the

greater

demanded

con¬

effect of the

would

tries

concentrate

drives. The

nomic

export

uncertainty of the

eco¬

that

would

result, in

in
k

.encourage

for

Norton

and

inflation

wages

1956

he "w

example,

which

and

was

reasonable degree

would

its

resume

#U•*•£'**

77lis

•

annou ncemen

position

full
Harold B. Smith

progress.

the

reserve

for months,
of

point of view, even a
partial failure of the strike would

could stand

was

the

strikes

immediate,

though

payment,

..immediate

not liable to affect

if workers

and even

Frazier

Jelke

in their strike.,

There

was

;

logical

original founders- of the National

would

same

And

justification for
initial
psycho¬
of the- strike
on

tend

even,

if the

worst, and

operate

state

worst

came

Smith

was

one

•

•/-J.

•*"

■

-t,

....

.■,

••

formerly

member

the

With J. A. Hogle
("Special to Thn Financial Chronicle)

LOS ANGELES, Calif. — Ezra
Ratner is with J. A. Hogle & Co.,
507 West Sixth Street.

*•'

■

offer to sell nor a solicitation of an offer to buy any of these De bentures.
offer is made only by the Prospectus.

The

; $250,000,000

American Telephone and

effected

exports
and

market will

the

absence

some

ciation

Year 4V»

April 1, 1997
-

Interest

•

Due April 1, 19So

•

payable April! and October 1 in New York City

time ago,

not feel the

of engi¬
shipbuilding exports
proceeds

the

neering and
until

some

Telegraph Company

Twenty-Eight
Dated

time later. The

sterling

was

depre¬

Price 101.214% and Accrued Interest

therefore

purely psychological. This appears
to have been realized after a few
days, and the partial recovery on
the
Stock
Exchange
was
ac¬

companied by
of sterling.
■
.

partial recovery

Economic Cost

Copies of the Prospectus

may

these Debentures in
*

lie obtained from only such of the undersigned as may legally offer

compliance with the securities laws of the respective States.

idle to try
gravity of the ef¬
fect on
sterling -of a prolonged,
strike in Britain's most important
Of course it would be

to minimize the

exporting industry. Should both
parties prove to be stubborn, the
loss of engineering and shipbuild¬

exports

ing

gold
before

weaken

the

reserve
considerably even
the advent of the autumn

pressure.
on

would

terms

If a settlement is reached
favorable to the workeis,

substantial in¬
crease in costs of production in the
industries directly concerned, and
the higher
prices of equipment/
would mean an all-round increase
in the cost of capital investment
in general. If, on the othei hand,
the workers feel impelled to re¬
sume work on terms they consider
unfair, the effect of such a settle¬
ment on their attitude might have
it

must

mean

MORGAN STANLEY &
BLYTH &

HARRIMAN RIPLEY &

CO.

Incorporated

LEHMAN BROTHERS

WHITE, WELD

GOLDMAN, SACHS & CO.

KIDDER, PEABODY & CO.
'

■- *

•

LAZARD FRERES & CO.

STONE & WEBSTER SECURITIES CORPORATION

SMITH, BARNEY & CO.

A. C. ALLYN
&CO. AND COMPANY

A. G. BECKER & CO.

Incorporated

HEMPHILL, NOYES & CO.
LEE HIGGINSON CORPORATION

March 27, 1957.

CO.

GLORE, FORGAN & CO.

CO., INC.

HORNBLOWER &
F. S. MOSELEY & CO.

•

WEEKS

Cor-

SbW brfns PO-te'L/" of°New York
emergency in a"d the Bond Club of New Jers^-

....

the

foreign

The

Mr.

Security Traders Association and

prolonged strike

reserves

about

direction.

effect

sterling.

N.S.T.A. Treasury,

the

pronounced

t is neither

eign currencies which are offered
today in the market originate from

Co.

strike
the

were
to join
and shipbuilding

engineering

the actual sup¬

ply of foreign exchanges for some
time. Most dollars and other for¬

with

Lage

far as sterling is con¬
cerned. There can be no material
an

ri,

Co.

Co.,
Co.,

that the effect
the balance of

Sweetser

justification
for
sharp fall, seeing

11 i

of
overall
employment
through the indirect effects of the

tion

the strain

industries

other

workers

the

From this

devalu¬

if the strike should continue

even

the

com¬

New

a s

and Charles
ation/
Head & Co' Mr- Smith is ! well
i.
'
*
Had the reserves not been rein¬ produce a salutary effect in dis- k^own from coast to coast in the
wages
de- -tr adding fraternity as the Chairman
forced 1 by
the
dollar
facilities couraging / excessive
mands.
If the unions
concerned of/dm National Advertising Comarranged with the International
in
the
present
strike
were
to 111"tee of the N.S.T.A,. from 1939
Monetary Fund and the Export1956. During his term, as NaImport Bank, and by the defer¬ spend a large proportion of their
ment of the
instalments on the large funds without being able to tl0nal Advertising Chairman, in
achieve
anything like their full cooperation with the "Commercial
American
and
Canadian
loan
Financial Chronicle," the
agreements of 1946, the effect of demands, the cost of the strike to and
the nation would be offset by the Year-Book Convention issues
the
strike
and
of
the
ensuing
autumn drain might have reduced beneficial effect of the failure on covering the national conventions
°ver
$175,000 to the
them below danger level. As it is, industries in general. The mitiga- Yl^ded
hand in the direction of

lower the Bank rate.

plicated

New
C i t y.

thereto

York manager

,
the
other- in¬

the

exchange which, confronted with a major
market need not concern itself un¬ danger, the British people usually
a
curtailment
of - spending
by
at
their
best.
duly with anything that is liable show themselves
many
millions of 1 wage-earners to
happen beyond the next three Some such shock is badly needed,
and others who are not involved months. And in so far as
anything and when it comes, it is liable to
in the strikes. In other words, the can be regarded as certain in this produce a salutary effect.
*
,»
prospects

o r

many

would

unions

kept down to

Government's

demand
dustries

not

C
Y

Prior

trade

was

formerly with
Pershing
&

competitive* Abroad.
What is perhaps even more im¬
portant, the success of the wages

magnitude that

the

force

were

3331 Via Lido.

Mr. Smith

conceded,
is
quite
another
question. Many categories of Brit¬
ish,
engineering
would
goods

strike-on

decline

by the strikers

Exchange firm of Shearson, Hammill & Co.,

the

mind

in the long run if,
prolonged
strike,
the
part of the 10% increase

asso-

f,ciated with, the New York Stock

to cause,

authorities

the

enable

The

spite

bear

increase,
that
likely to be of

credit
public issues

strike is liable

the

cease

demand for

in the

and in the amount of

that

extent

should

strike,

affected

after

balance the

sterling's prospects Wbuld

its

in order to prevent a relaxa¬
of the
credit squeeze, the

decline

Calif.

the Bank rate is
high figure of

since

contrary,

maintained

by the

mitigating effect jvhen trying
assess

market would induce these indus¬
grave

developments

industrial

equities

such

effect

the

While

tion

not

of exports.

though

rate.

and

these

sterling-dollar

the

loss
ment

constitute

railway strike.

for some time, the
during the second
.week of March produced a sharp
impression on the Stock Exchange
and on the foreign exchange mar¬
ket. There was a marked setback
both
in
Stock
Exchange quota¬
tions

strike

the

Even

threatening

■■

How

BEACH,

Harold B. Smith has become

Long Run View

delivery dates, it will in any case,
sterling: What matters is to realize
be
impossible ; to ' make up- -f or.
that;, eVen if the next few months
time by stepping up the out-.'
Should Witness ;'a decline f in the
put. Any exports lost as a result
gold reserve instead-of its seasonal
of

Shearson, Hammill
NEWPORT

lost

other

developments

cline in consumer demand. But

employed and have to quote long.;

strikes

been

mitigation of its, effect by the de¬

-i

/'•
are

six months.

would necessarily be

reserve

affected

produc¬

■'

■

Since

..Needless to say, on

on "

';••/ V
industries

strong
possib i 1 i t y of a

have

place
prolonged strike.

siderable

influence

extent

No Threat to Sterling

strike

Britain.

adverse

labor

the

deterioration : in

sharp

situation

inadequate

months, despite the possibility/of

spread. Taking a long run view, Dr. Einzig
of the strike's partial failure to the nation

offset

would

about
an

Suez crisis, would take

the strike's further

believes the cost

and
which
was
only temporarily

about,

;

the economic -consequences of the

Internationally known British Economist discusses the present
strike and sees no reason for sterling to decline below parity
for next three, or even six,

full of uncertainties, it is
sterling will not decline be¬

bring
and

world

prolonged

that

brought

By PAUL EINZIG

the

credit squeeze has been unable to

DREXEL & CO.

W. E. HUTTON & CO.

PAINE, WEBBER, JACKSON & CURTIS

The Commercial and Financial Chronicle

(1452)

not under the

The Diminishing Bmden

current drive for consumer credit

Of Consumer Credit
By DR. H

regulation.
III.

E. LUEDICKE*
'

Editor, "Journal of Commerce"

present Administra¬

tion, they do show up some of the
more devious motives behind the

Economic Setting

The

role of

The true economic

con¬

*the

few

Much

though the rate of increase

the

current

credit

inflationary credit curbs?

con-

traceable

to two factors:

VI.f Restraint
The

that of

Should

credit be

consumer

anti-

controls

stand-by
a

perma¬

j '■ V

,,;V*:

current

The

controversy

over

due to the fact that the monetary

experts still are dealing with the
problem in terms of 1955—while
it should be dealt with in terms of
1957 and 1958.

k; >

the

often

the
policies

much time

spender,
but
he
is
also
Only widespread fear
monetary inflation would be
likely to upset this attitude.

There is

rela¬

of these

simple

agreement

questions.

The Federal Reserve Board study
to bring the conflicting

tool in modern

obvious

recession.

1949

that

heated

consumer

troversy

1955

led

credit

quite

make

to be

primarily by those who

business

this

ment

the

for

for permanent instal¬
ment credit controls as a result of
Luedicke

Heinz E.

swings.
to

In this

trols.

would

the escontrols

sense, even
of stand-by

tablishment

have

regarded

too

credit

consumer

enough about

talk

much

control

not

and

credit.

consumer

•

talk about
the
.consum^ - crwfit: in
achieving economic
stability^
and
not enough about its use
in achieverf 1S
role of

° mu

rnu*
There

the

•

too

role

variety,
II.

credit

While

era! credit control and not

about its role

about
control

enough

consumer

goods

both^ from the sellers and the

buyers points of
The

view.

trouble

credit

with

consumer

today is that the monetary
have been permitted

to annex this field

sive

domain

while

their exclu-

the

views

^Si"nfSi„^lni>mlStS
have been
largely ignored.
I.

nomic

■t,*

rm.Q

The past year brought the underlying conflict over the role of
consumer credit to a

climax in the

Federal Reserve Board
consumer

volumes

credit.

of this

survey

The

first

six volumes.

the

was

direction

for the

specific

the

President,

purpose

of investi-

gating the desirability
of consumer credit

trols.

who

pushing
because they
are

believe

necessity
stand-by conor

The research job grew

out

used

for

proportion.

Yet

today, a
year and six volumes of reports
later, the monetary experts still
dominate the debate; and they are
still poles apart in their views on
consumer

credit control.

The disagreements
among
revolve around two points:„

the

matter

never

was

made out

was

and

should be

contra cyclical

purposes:

bcdd

hack

consumer

through

changes

demand

threatens

into

other

fields,

Actually, consumer credit merits
important assist for getting us
over the hump in
1954. This had
nothing to do with any magical
contracyclical
powers,
but
was
merely a reflection of the fact that
an

market
In

was

broadened the

automobiles.

for

retrospect, it is
whether

wonder

when

outrun

the

supply of durable consumer goods;
and — conversely — to encourage
instalment purchases of durable
consumer

goods

lagging.

when demand is

xhis concept is fallacious.
of

easy

the

enough

1955

up¬

recession

thing
p£

down

when

because
as

put

there

for

into

Consumer attitudes during

the

bli

goods.
an

eco-

r?idit

stalment

re-

such

consumer

the nrice

low!?

With

modern

unem-

tracyclical

mass

sales, this kind of conmanipulation would
rather hazardous gam-

constitute a
ble; it probably would
permanent

loss

result in

sales

out of the

motion

the

post-Korean

The outstanding fact today—and

this is all too often overlooked by
critics of consumer credit—

the

that

its

credit

consumer

got

over

1955

upsurge—call it a binge,
if you want—without any serious
hangover and without doing dam¬
age to the overall economy.

rather

Sound

IV.

Not

enough

the

been

made

January, 1957, for

fip^t time since the latest in¬

stalment
way

credit

late

exceeded

cannot

credit

This drop

extensions.

explained

away

not be too

may

portant

because

upsurge

under

seasonal.

nificant
the

got

or
early 1955,
instalment loans

new

merely

boom

1954

repayments

Footing

has

the fact that for

that

production
industries closely geared to instalment credit

defense boom.

That

in"
nc

tlLt

believes
headed

into

off

goods

consumer

It is,

planned postponement

demand

set

leveling

possible to curtail inpurchases by making

terms prohibitive; but the theory
breaks

durable

badly to pull

course,

stalment

them
„

than in their postponement,

itself,

1955
was

but

sig¬
im¬

demonstrates

instalment

credit

brought under

con¬

trol before it developed into a real
threat to the "normal" level of
retail

trade.

There

was

lot

The risks involved in

credit

Even

obnoxious

are

sug-

the American
stalment

Bankers

Credit

20,

Dr.

Luedicke

before

Association's

In-

Conference, Chicago, 111

1957.

buying cer¬
tainly represents "borrowing from
future," the 1955-1956 experi¬
ence has proved to my satisfaction

the

knows

They would

gear instalment credit

to go

controls

what

His resistance to temptation may
be weakened at times, but not for

the

"planners"

_—

address

instalment

stalment regulation. Such
proposals have been made tentatively.

trol of production,
..

While suggestions such as these
will not get anywhere, certainly

consumer

predominantly

are

matter

of "terms."
It is safe to say

problems

largely

that most of the

this

field

disappear

would

adequate

that

long.

the

American

There

has

cussion

been, since the 1955
good deal of dis¬

about

the

amount

"equity" which an instalment
chaser ought to have in his

This reflects

have

how far it is

safe for

him

in incurring instalment debt.

Actually,

temptation

fear that

erred

older

moving

criteria

roughly

for

assured

ment debt

pur¬

may

from

away

terms

the

that

instal¬

outstanding equaled the

•

his resistance to
strengthened by a
sound attitude toward
is

generally
saving. Recent studies and surveys
on savings attitudes made
by the
Michigan University Survey Re¬
search Center have disproved the
cynical belief that saving in the

the

credit

demand

control

things:
„

into

the

ers,
from

the

role

the

older

creased

concept

cri¬

defense

this

such

principle

closely,

drop in the price

market

lateral.

value

the

far

total

could quickly
outstanding in excess

debt

quite

the

col¬

soundness

the

rate

total
for

comparisons

procurement of services" that has

going

for

time and

some

is continuing.
This is not

it is

can

defense

new

instalment

their

and

rate

than has been the

case

credit

increase

thus far.

for

needed

dropped to
drop In

1956.

The

30%

was

instalment credit.

field

for

anywhere

probably
better.
despite the 1955
did

the

instalment credit worked

well

else, and
problem,

The

upsurge,

never

•

get out of hand.

Perhaps the most impressive
demonstration of buyer and seller
restraint in this field was the fact
that 1956 brought a reversal rather
than a continuation of the 1955

trend. Even in 1955, there was no
magic, in terms alone. The 1955
pattern resulted primarily from
of the

success

was

another

auto models.

new

terms

same

induce

then

helped.

1956 failed

buying spree,

Under

fur¬

and

services.

credit

consumer

ifWasn't

than

control

ever

convincing

1955.

the

circumstances, the

weaker

now

these

for

case

nor

effort made to speed

any

lagging automobile sales by
ther loosening of terms.

was,

late

even

;

coincidence,

publication of
volumes of the 1956

first five

Federal

Reserve

Board

credit

consumer

only

ten

days

Credit

study

control

followed

publication

the; latesti Bulletin

the

Instal¬

Commission

the

American

Bankers Association in
which banks and other lenders in
the

credit

consumer

urged

exercise

field

were

increasing

degree of prudence and to follow
a policy of "controlled
flexibility"
in

the
As

period
far

cerned,

ahead.

timeliness

you

can

the

con¬

trade in the five
Federal

Reserve

report for the scant five pages of
this Bulletin of your own
zation.

organi¬

Probably,

you all have seen this
prior to your departure

Bulletin
for

Instalment
payments
are
in¬
creasingly taking the place of cash
outlays that formerly had to be
made

increase

of increase

volumes

discovery, but
observation that probably
used more effectively in

the

totals

(2) Voluntaryrestraint

con¬

of
current
to prewar are meaningless.
These comparisons ignore the im¬
pact of the
"revolution in the
been

impact

other forms

as on

private debt, but about 50%

ment

credit load is

bit of work has
been done in relating instalment
credit to disposable income; how¬
ever,
ratios

$51

billion in

...

consumer

cerned,

- -

restraints

private debt in¬
billion in 1955—but

fol¬

were

of the used product

the

same

$35

anyway,

departures
from
the
collateral
concept, it should be noted that

leave

credit

rate

The

collateral

terms.

lowed

two

•

easy,

the

lend¬

switched

has

to overrate
the security which may be found
in

shown

■

credit.' Total

instalment

.■■■;

consumer

•

':viVr:''

instalment credit

Liberalized

character

personal

terion.

least

emphasis

has

General

come

have

banks

judgment.

for

(1).

•

had

the

balanced

pur¬

market value of the collateral.

now

The experience since the flare-

this

refresh
one

Conference.

the

Just

let

your

memory by quoting
sentence from it. "Until

economic

climate

can

Instal¬

brought

ment

payments on refrigerators
washing machines have re¬
placed cash payments to the ice¬
man
and the laundryman. What

Bulletin

and

should lean toward the conserva¬
tive and selective approach." *

maids
goes

used

in wages

get

now

to pay off debt for numerous

household gadgets. Cash spent for
movies
and
theatres
now
helps

off the instalments

pay

radio sets. And
Just

TV and

the

home

mort¬

burden to

new

buyers, but, at least in

part, substitution of rent, in
sumer

similar
cash

instalment

outlays.

the

debt

substitutions

con¬

have

debt

for

family

part,
substitution for public transporta¬
tion outlays.
This

fact

car

alone

are,

focus,"

"credit

policies

consumer

only

not

the

credit

mean

that

banks and other financial institu¬
tions must resist the
to go

temptation
along when demand for con¬

sumer

goods shows signs of
it
also
means

for

run¬

away;

development of
the

sound

day-by-day

the

procedures

conduct

the business.
I feel sure that the
Federal Re¬
serve

the

Even -the payments

better

stated,

does

on.

payment

into

Restraint in the

(field

ning

the

gages is not a net

consumer

velop
-

should

look for such criteria?

experience,

discussions

pushed

credit terms

consumer

available. Where

borrowing from the future but
obviously not enough to upset the
apple cart.
While

gestions to guide secular industry
growth rates through credit in¬

nor the im¬
credit aggregates

judged as to its soundness by any
ratios, correlations, or mathemati¬
cal equations.
*="£■:' ;

even

in automobile buying really
blessing. But let us not

surge

purchases

terms

borrower,

consumer

these

the economy as a whole can be

are

con¬

notably mortgage credit.

postwar

consumer

(1) Can consumer credit be con- rG£ard as sustainable rates of protrolled through general credit re- Auction and sales in key sectors
straints, or would it take selective
economy, like automobiles
qualitative controls (on top, of °r other durable consumer goods,
general restraints) to limit its use Such schemes would be only one
step removed from outright con-

March

problem

acute

credit

sumer

can

pact of

all

*An

fact

anxious to divert funds from

boom

that

plovment headed higher.

requested by
the Council of Economic Advisers
survey

consumer

stabilization,

credjt controls

^p_ub?^herdl.The,wholesurvey levef
will consist of
This

for

five

have just

survey

drive

those

They

versd

The Conflict

least

The

the

that

hard for them do so
forget
that,
at
the
time,
we
see, 4n -the control of consumer
thought " we needed that second
credit an additional took for eco-

economists

some,

modern merchan-

dismg of durable

the

controls ostentatively is
airHe^ at making over-all credit
policies more effective, at least

perfecting Sen-

Distorted Aims

have

modified.

easier credit terms

talk

much

consumer

ought to play

the
any

form of consumer credit control
at this time—even the stand-by

higher living standards.

ing

con¬

study 'supplied
argument against

about

for

case

this

strongest

permanent facet of credit policy.
There

Actually, by failing to

convincing

trol,

past 'emergencies
as a pretext for the establishment
of permanent consumer credit conuse

case

study.

make

The at¬

(2)

tempt

individual

future—does not

the

because
conditions make it possible to de¬

can

determined
by fixed
yard¬
(But, then,, what business
can?) Neither the position of the

con¬

longer exist,
been
greatly

manipulation
of cyclical

that

soundness

the

viewpoints closer together. Con¬
sequently, I doubt very much that
the
will
Administration
try to

instru¬

whose

chase.
conditions

The

merchandis¬

into

business

should

1949 Eco¬

ing

longer acute

likely to turn acute
near

that

Actually,

nomic Reports although

failed

Yardstick for Soundness

were

either

problem

subject
should
promptly be dropped from public
discussion, however.
an

Consumer credit is not the kind

criteria for

been

not

again in the

the way in

Truman's mid-1948 and

mean

drastically by the time such poli¬
cies are ready to be put into effect.
The classic example for this was

which anti-inflationary
policies were pushed in President

—and

the

credit is

consumer

Control

versus

that

provident.

case,

economic

consumer

fact

formulation

American

sticks.

credit control is largely

consumer

the

from

tively

The

it should
then that
ery, or is it preferable to deal with
price inflation was over and the
"emergencies" as they may arise
country was actually headed into
in the future?

role

dream

lization.

have

consumer

credit

need

pioneers did not even
serving economic stabi¬

unpatriotic.

free

that conditions may have changed

nent feature of the credit machin¬

the

economic

(2)
for

(1) The dis¬
tortion

there

for strong

and

control

confusion

credit

consumer

Its

tries.

Thursday, March 28, 1957

garded

credit, notably instalment
credit; lies in broadening the mar¬
ket
for, mass-production
indus¬

frequently requires

the

over

the past ten years.

next decade will not match

sumer

months, and foresees the growth of such credit

the economy grows,

about

consumer

United States today is widely re¬

sumer

instalment credit's true role as broadening
the
market for mass-production
industries, "Journal of
r
Commerce" editor explains why it cannot serve as a tool forai;uy
economic stabilization except, like other types of demand for %T
investment funds, ^that it ought not be financed at the price ,v:;;
of general inflation. General economic rather than individual : :
risk considerations,. according to Dr. Luedicke, is held to be
v
more
reliable guide as to soundness of instalment credit
practices, and selective controls are found; unnecessary to , •
protect the consumer. Author doubts 1957 consumer credit
rise will exceed last year's unless auto sales pick up during
I;
Depicting

study of

end,

subject,
dealing

with

and

consumer

will

addition

prove

the

credit, in
valuable

literature

particularly

its

actual

experiences.

this

sections

procedures

These

sections

that should
prove especially valuable
previously accepted criteria for because consumer
credit, over the
instalment
lending can now be years to
come, will continue to
stretched quite a bit without hurt¬
attract more
suggests

financial

ing
no

anybody.
reason

consumer

Certainly
be alarmed

instalment

there

because

debt

out¬

standing, in 1955, reached 13% of

disposable income as against 7.5%
in 1929.

particularly
premium

banks.
the

institutions,

This

puts

availability

pretested
cause

experience records be¬
they can help to hold down

Continued

page

Volume
•

185

Number 5624

The Commercial and Financial Chronicle

•

.,?

(1453)

Keeping Values in Balance
By

DON

rapidity.
ural

the

business cycle and

suggests

our

new

understanding of real facts and

recent

of the

past

must

ties

any

healthy
^pf

blessing

A great re¬
natural resources is a
and necessity. Industry

excesses

and

must

to start turning, pro-

great, and eventually that
must be brought closer to-

Either

the

present and future income possibilities.

Investing in the so-called blue

chips,

growth stocks, and those
with large natural resources gives

priced no positive assurance of being a
balanced value purchase.
It is
only a good purchase when the
price paid is within reason as to
actual earnings, dividends and
capital appreciation within a reasonable length of time.

over

those issues

sound

com¬

panies for their true current and;
future

values'rather than the in¬

flated

issues

sales talks
or
m
__

judgment is

situations

brought into balance

maintain
a

of industry

abnormal

too

chase

economy.

Value received is the basis upon

We
and

invest

manufacturing

serve

hastily dump securi¬
faster than we would dump personal possessions
when prices drop.
;
:

live,

ana

have to drop or the1 others
move up to create a better balance. This could be accomplished,
and we would have a sounder
market if the large investment
people would search for and pur-

would

but

economy.

issues

investment stature

ones

Profitable

investment stature, and not

near

the

near

gether.

conditions,
production in balance
with demand is the answer to a

con¬

sumption items, the author suggests we master as thorough
a.
knowledge of the former as we do of the latter, improve our
value measurement yardstick whether
buying blue chips or
stocks

labor

and

learn

the

between

gap

investment

gap

prospect under normal production
a n

Relating securities with

the

favored
others of
is

commodity would
foolish waste of

any

shortly wreck

.and

only

material

prosperity

thinking

not fancies

fear of the present and future."

not

equilibrium balancing dur¬

period "has created the necessity for

production of any nat¬
resource, any manufactured

article

ing

Usually

its do¬
with great

and

All-out

C. PRESTON

himself with

concerns

importance

great

mestic use.is expanding

Seattle, Washington

Mr. Preston

stabilized-economy and
proper balance of values.
Purchasers for others, through

Scott Pierce Joins

where-it is felt no
'defense of purchase

G. W. Walker & Co.

necessary,

•

H.
Walker & Co., 1 Wall
Street, New York City, members
of the New York Stock Exchange,
G.

There are many contradictions announceri
in actual value appraisals between bepome

has

de-

creased

such

other

vanished, val¬
received is

ue
n o

longer i

balance
the

—

were;,

!je Chfln

^
ai?p received
rptpAJLi
L
value
balance hii
had gotten

in-

with

material

labor

out of hand.

Not only money and

goods

out

were

people's

minds

balance

also

were

but

out

Adjustments

gai?y SongtwithUtheVmyths of*the

then

times that orosoeritv

made to

bring

them

into

proper

rela-

tion- with

one

taken

Don

Preston

depressions

grees

value

again in

varying deadjust the

labor.

and

balance

proper

various

severity
goods

mediums

When

with

exchange,

new
economy based upon
received is brought about.

out

this

balance

the

value
With-

true, safe
be achieved

full prosperity can

the

1929-30

period

merchant of

---

—

Ing

writer

that time

mostly

the

deal-

all

To be

successful

merchant of

that

time, one had to obtain and
selling franchises from the
few leading manufacturers of the
day, whether it was automobiles,
hold

musical

instruments, appliances

manufactured

any

ally'

selling

basis.

article
an

Manufacture

installment
competition
dealer was

under

pressure and

heavy factory
obligation
to
hold

his

selling

severe

competitive

life to greatly imexpand the value of their

prove or

products. Apparently their thinking was that their initial suc¬

together with their great
value, would carry them
successfully on forever; all one
cesses,
name

riches

was

and

glory.
shining bright.
The

pressure

The

for

them

halo

was

well

doubt

corn-

to
to

pav
pay

the
tne
over

balance

balance,

bought

soon
soon

public.

However,

they
were
gradually
coming to realize that the balance
owing no longer covered the artitie's current value, depreciation

thaenVf1i^ehalflncpCowpdd
the balance owed.
than

longer did

they feel

the

need

with the Joneses in merin which they had lost
interest
and no longer were they
ashamed of repossessions. In fact,
it became a national pastime to
repudiate
obligations
wherever
possible.
up

chandise

last, and from real necessity,

produce
;

merchand se

with

eat

appeal and value, resulting in

gradual customer return, recreat-

ing

know

and

are

tically invest in securities without
much actual knowledge of their
true value in balance with the
dollar value, invested.

issues theY feel may be approach-

•

bond

a new

uation,

services

for

Throwing out

power.

of balance the actual worth value

guide governing

prices serve as a

full

analysis

person's time against value

values,

prices

making

them?
.
How many of us use a yardvulnerable stick of value measurement in

values

creates

beyond

current

them

the purchase of securities? In fact
by even the purchase of one share
to in any company we become a
push them awav beyond their true business partner in that business
market value from a dividend and to the extent of the percentage of

allowing the

wheels

W9S

C. Radford Van Ness
With Harris,

Upham

(Special to The Financial Chronicle)
...

CHICAGO, 111.—C. Radford Van
has

become

Harris,. Upham

with

associated

Co.,

135

South

La Salle Street. Mr. Van Ness was

natural *aw of balance, bringing
corrective

value

until

measures

balance

has

again

the

been

achieved.v

Understanding Required

issues

name

where there

the

n°t necessarily form an accurate

market

considerable

cause

slump

ance

Street.', He

previously
.
J

was

With Thill Sees.

tend

ratio in spite of our holdings. We should know
range prospects, and whether or not we have made a

long

inflated

Whiles, thei....
£vents of
the- past
r—- do
—

Salle

with White & Co.

market weakness.

any

their

in
New

Kane, Rogers & Co., 39 South La

Heavy investments in a limited

received by tbe employer disturbs price earnings

issues.

value

MILWAUKEE, Wis.—George J.
Gawronski
curities

anced against income and the op-

portunity for capital appreciation,
up

down but measured by its

now

with Thill

704

the

fundamentals

...

(Special to The Financial Chronicle)

VENTURA,

Calif.

—

—rrr.

Fortunately,

however, men learn
experience and do adjust

from

themselves

nature,

conditions

other

life's

creatures

changing

ever

$5,540,000

demands.

and

Our very great and real contin-

(Second and final installment of

uous Prosperity of the many past
Jears
created the necessity
for "ew thinking analysis and ac-.
curate understanding of real facts,
?nd not fancies of the past or

Southern

issue aggregating $11,080,000)

Railway

Equipment Trust, Series UU
33A% Equipment

and actions to normal situations
a f. constantly looking for and
® abnormal investment

opportunities, Unless there is a
shortage of something where the
known supply is less than the im¬
mediate demand, we feel that the
situation is not a healthy one.
We

such

full

are

there

as:

mature

To be

contradictions,
too

much

large
are

reserves

alarmed

take

over

with

MATURITIES AND YIELDS
(accrued dividends to be

JgJ*

3.65;

July 1957
Jan. 1958

3.55

Jan. I960 and July I960

3.70

July 1958

3.60

Jan. 1961

Jan. 1959

3.625

Jan. 1964

July 1963
Jan. 1967

3.75

things and

what

think

3.80

supply of others.

'companies
it

added)

Jul / 1959

3-50 %

havinS large proven underground
epeprvp?

and dividends by endorsement

cop¬

comfort

some

January 15, 1967, inclusive

guaranteed unconditionally as to payment of the par value
by Southern Railway Company.

coal and other groups of natural
res0Urces,

$277,000 semi annually from July 15, 1957 to

too much lead and too much
many
other natural resoures.

Trust Certificates

(Philadelphia Plan)

nil

anH

present

production

Thic

and

of the undersigned

such

necessity for

control!

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

Issuance and sale
The

and other dealers

as may

lawfully offer these securities in such State.

the

aiwayS present unbalance between
refined
QUS

gasoline and oils of vari-

HALSEY, STUART A. CO.

typeg
Short

and

Long

DICK

Run

MERLE-SMITH

R. W. PRESSPRICH

Considerations

Copper,

one

of-the

metals

short supply in the earths surface,
suffers market wise whenever the

demand does not exceed the pro-,

duction.
are

New

resource

FREEMAN

WM. E. POLLOCK

McMASTER

discover¬

seldom bullish. This even

though copper is a'strategic metal

March

22.

NEW

A. COMPANY

1957.

YORK

BAXTER

COMPANY

HANSEATIC CORPORATION

SHEARSON, HAMMILL A. CO.

A, CO., INC.

HUTCHINSON

INC.

&. CO.

& CO.

Don W.

with Dean .Witter
& Co., 129 South Chestnut Street.
now

change.

never

Se¬

North

Joins Dean Witter

market sets its true value, not its selling Bowker is

disturbance.

Corporation,

Broadway.

price paid, bal-

The

these

complete

from

investment

good

standpoint.

This very unbal-

support

buying

causes

is any let up

(Special to The Financial Chronicle)

pattern for the present and future,

and sounder credit sit-Mes

and

depart-

Wlth ph€lPs« Fenn & Co;

Ness

Daily quoted security market

buyinS for their own accounts,

While there is never too much oil,

produced

keep

personal purchase with-

out

per,

sales,

nlan<

ter

mar-

Personally, these same
informed investment gentle-

* e Present and future.
Generally
no
real ; necessity "
°urs bas been such a forward
seemed to exist whereby manu- a
Pr°sperity that it isfacturers felt it necessary to their v°7 d>«'c"lt to adjust our minds

years
yea
s

municipal

ear

rights

had

personal

drop.

number

that

they suffer
ket

purchasing

gener-

being rather limited,

their

bartered

and

stopped all new purchases, maintaining
only
repossession
sales
and collection offices.

think of

a thorough understanding of
its actual dollar value. On, the
against them for such purchases other hand we gaily and optimis-

standing

ment

excessive

re¬

merchandise

new

■

who

merchandise

quiring contract selling, remem¬
bers clearly
the value received
unbalance. Frantically he disposed

investment

so-called

our personal living and the purchase of securities. We would npt

firm

the

criticism could possibly be made

dollars had to get in line with a
new understanding of their time
and work value in relation to
their productive value and dollar

Lookirf" back~ on the"denressinn °f
of

and

well

has

Pierce

with

i'JS a so-called investment stature a current willingness to buy or formerly a partner in Frances I.
at a Pnce more in line with their sell at a stated figure. Theie aie du Pont & Co.
earned dollars in situations withtrue value than the toP issues' but P° .such Quotations on homes,
out a balanced value to their dolones on which they would suffer business or other personal PossesWith Aim, Kane, Rogers
lars invested
more from criticism should they sions.r Would the public hastily
Not only was it necessary for drop in price. This effort at per- dump these personal possessions
(Sr^iai to the r™™™! ch.on.cl.)
sonal
protection
from
criticism as they sometimes do securities
CHICAGO, 111.—Louis S. Kuhn
the manufacturers to change their
and
purchasing
names
without
when
the
quotations
frighten
has
become connected with Aim,
value thinking, but the people
held

Often it has

wealth

purchases

Scott

could be'secured' and
investing
their
hard

happiness

another.

their

issues; issues of such high invest-

men

expended.
must

restrict

established

factors

C^ orli 0r'li

money,

low dollar cost.

tha+

a^sociated

the
turn

•

SUPLEE, YEATMAN, MOSLEY CO.
INCORPORATE©

,(1454)

generation — almost
changing tastes and

Industrial Diversification:

certain

make

lete.

Good

By JAMES F, CLARK*

made

mean

How

widespread

industrial

widespread

that

examples

have

liot

transfer

hard¬

are now

to find than

-The

York. "Times"

di¬

versification
"a

ternal

postwar

phenomenon,"
"It

Jame*

arnioa.,

the

about

Car

and

way

If I

demands

uneven

area

business

our

of life for
business."

While

some

are

working so well, thous¬
ands of companies are furiously
diversifying into new lines." Y
One Statistic suggests the im¬
mensity of the topic we are con¬
sidering. Since the end of V(orId
"War
II, American business has

tions,

railroad
The

"•wow

remember

you

the

line,
Worthington

will

put
Pump and International Nickel
together and get pumpernickel."
we

Diversification irrolies

new

prod¬

ucts.

Companies can merge or
acquire without diversifying. The

railroad

Let

that

bear

considering

are

diversification

diture.
When I speak of

product diversification.

mean

expanding
services
sota

diversification,

the

line

offered

Mining

for

goods

sale.

Minne¬

and

Manufacturing
diversified when it began offering
the public Scotch Tape, a new
product. Sears Roebuck diversi¬
fied when it began selling auto¬
mobile insurance, a new service.
Incidentally, it added life insur¬
ance only last week.
:

Diversification is not

exclu¬

sive practice of large corporations.
A

just

food counter is

much

and
it

when

Rubber Company was when
bought the RKO motion picture

studios. Or perhaps, in the light of

today's practices, I should turn my
example around and say that a
drug store which decides to carry
drugs is diversifying!
Defines

and

business

alysts cite dozens of types of
diversification, but two pairs of
categories pretty well cover the
field. All product diversification is
either

external

either

divergent

Internal,

and

convergent.

Briefly,

diversification

external

when

called

but not

common

eral
that

Trade
of

Commission

2,000

•

sitions recorded from 1951

operation.

75%, I think

can

things
many
new

over-riding

growth.

today

reason

business

Bell

and

Howell

framework.
diversified in¬

moving

ceptions,

the

you

minimum of

ex¬

largest

and

fied.

address

by Mr. Clark before the
Albuquerque,
New
Mex.,
Chamber
of
Commerce, March 12, 1957.

The other reasons
are

need

the

those

non-growtli

for. diversifi¬
specialized. One

offset

declining

market.

In every

and

manufacturing
creased
crease

Increased
reflected
and

i e's in¬
RCAV profit in¬

c o m p a n

225%.
was

Electric's

years

stock

appreciation,

higher dividends. Here
again, diversified companies have
done

better

than

the

right

when he

have

said

before,

mcb after

a man

orderly

way

James is engaging in
business

Franconi

Opens Office

South
in

Harwood

Street

engage

securities business.

the

from

offices

— Fred
securities

413

Arapaho Street.
i

DALLAS, Tex.—John L. Fran¬
coni
has opened
offices at 308

but

Fred James Opens

N.
Young is now affiliated with H. L,
Jamieson Co., Inc., 1419 Broadway.

Harold Osherow Opens
PATERSON, N. J. —Harold H.
Osherow is conducting a securities
business from offices at 216 Lyon
Street.

national

J. S. Griffith Opens

diversification v.can
'(SpeehkiYe TheFinancial Chronicle)
subsidiary effects that
BUENA PARK, Calif.—John S.
are highly
important to this'-ap¬
Griffith is engaging in a securities
praisal. If it results in offsetting
business from offices at 8191 Dale
Continued on page 54 Street.
two

the

RUSH SPRINGS, Okla.

OAKLAND, Calif .—Howard

averages.

have

says

have no brief tor Beck
has always annoyed me.

fSryo'a] to The Financial Chronicle)

264%, and General
impressive 388%.

profitability is,usually

eminently

Joins H. L. Jamieson

Credit

ending
in 1956, profits after taxes of all
same

Successful

cation

spectacle of

period increased 377%, and
:
Profit

grounds.

GE's 349%.

fall

ternally

•An

Beck

Electric, two major com¬
that have extended their

should

bring him to brook for any wrongdoing is through the judicial
processes. Any man in as complicated a mess as Beck is would be
a fool to try to explain it to a group of headline hunting Senators
and not take refuge under the Fifth Amendment. It may not be
good public relations the way Beck is doing. But he wouldn't have/
a chance in the world trying to combat the Senators on their home

In the decade between 1946 and

same

Amendment

union and the'A. F. of L.-CIO wouldn't like to lose its contribution.

off.

pay

1956, sales of all manufacturing
companies in the United States

American
Industrial companies are diversi¬

when it began making
selling microfilm and, more
recently, tape recorders and hi-fi.

promise

statistics'to confirm

interests into many diverse fields.

ward. Someone has said: "Business
is like riding a bicycle — either

Today, with

are

can

panies

that

it.

existing

the

feels

within

evidence

labor union official taking the
resign not only from the Council but
from 1 is leadership. The obvious answer is why the Council won't
kick him out. The reason for this is that Beck has the largest
Fifth

industrial

General

for

iness goal,
and that intelligent
diversification can contribute - to

fanfare of

the Council had resolved that any

accelerated

whole

There was the spectacle of Senators asking Beck why he didn't
resign from the Executive Council of the A. F. of L.-CIO Jbecause

fact that it

very

the

are,

table business men the same way.

We might take as examples the
Radio Corporation of America and

for di¬

desire

out¬

product

added by the acquisition of

American

keep

it holds for those who do it wisely.

merely holding your
own is not
enough
that stand¬
ing still is, in effect, moving back¬

you

customers

would

isdeeds of Teamster officials than the officials do themselves.

they can't stop here. They
publicity and put
big show of mauling them in public. For the sanctimonious
McClellan to contend that he is just making a study is ridiculous.He has all the information he will ever get. No, the purpose is a
show; the committee hearings are widely advertised in advance,
they are televised in the instance of Beck's appearance and you
can bet your boots that Senators who rever show up for a more
important committee meeting, show up for this one, and each one
wants to get in his bit. They lecture the witness, browbeat him,
say anything to get in on the publicity.
You might say that Beck deserves such as this.
The fact is
that these Congressional committees have a way of treating respec¬

in terms

ways.

across

McClellan Committee knows plenty enough
organization to base legislation. Their in¬
vestigators have made a thorough study. They know more about
rr

the

Teamsters'

must haul in Beck and others amid

increased 172%. RCA's sales in the

the

Y: Y Y'Y-YY/Y-''a' Y','( Y1Y

But, Senators beiqg what they

the, ;

estimate of

course

And there

side facility. Internal diversifica¬
tion involves product expansion

new

with

of diversifi¬

new

make

continuing

scene

versification

make

However, the

answers, but I am
this discussion to

man

was

Now at this late

Secondly,

the

established

or "badness" for
the community and

purpose

could

rate

lines? Authorities have found

three.

about the

the

many

Why,
when
working well, are so
companies diversifying into

limit

profits, it would:be
interesting in this evaluation

that it

many as 43

ex¬

basis

increase

"Fortune":

big business

impossible for millions and millions
The New
by which
a truck cannot enter New York City, for example, without a union
driver on the truck.
'/ Y\/
;
:. ■■■._.';

task, • because so many
companies have diversified and in

thinking is back of
diversify? To para¬

campaign when Roosevelt

condition whereby it is almost

arduous

diversify

of Americans to get a job unless they belong to a union.
Deal certainly gave the Teamsters their power, a power

"goodness"

company,

This

are

going to

separately

con¬

Carlisle Bargeron

They got it from the New Deal which sanctified the picket line
and, through legislation and Presidential support, brought about a

what it has added up to in dollars.

Motivating Factors
this desire to

deal

very

differs from the urge to
merge.

phrase

shall

clude that the desire to

What is the

premise

and

through

'. X ■ /''//'' Y'Y ' f
date, for some reason, headline hunting Sena¬
of making a study of the labor situation with a
view to passing legislation, which is the only warrant for a Con¬
gressional investigation, decide to go after Beck and the Teamsters.

that

Since

1955, only 25% were for purposes
of diversification. Since the bal¬
ance

the nation.

■il-jjo* i.oi

tors in the guise

intelligent

With

the

prid-wvrir-

mergers

down." I certainly will affirm that
constructive growth is a valid bus¬

cationis to

typical. The Fed¬

the

them up.

though,

provide

managerial,

area

external diversification. This is

—

for success in the new or extended

Nuclear

acquisition may,
course, result in diversification

The
an¬

its

A merger or an

Diversification

Economists

established

perience and skills, both technical
and

of its

necessary

Energy Products division.

diversifying

the General Tire

examples.

hardly

say

neighborhood apothecary who

adds

seems

that companies can diver¬
sify without merging, as ACF did

the process of

work.

where

effects of diversification

And

he was. It was during the
successful candidate for a :
fourth term that he was the honor guest of the Teamsters at one
of the swankiest parties Washington has ever known. That was the
occasion when some of the Teamsters leaving the swanky party
and feeling no pain got into an argument with four young naval*
officers as to the extent of their Roosevelt patriotism - and beat

Y 1944

cation per se. It must be assumed
that in appraising its advantages

Company
to

eulogies about what

equip¬

mind,

down the 200

guess that diversification promptat least half of that expen¬

to Seattle to interview Beck in his ornate offices and they wrote

cannot evaluate diversifi¬

got

Bank with the Bank of Manhattan

familiar

Pulitzer Prize for
loss of clients for
They complained that he was
writing every day about-the labor
never

still

rely

rule friends have not yet broken

are

...

height of the New Deal, in 1936,
Washington correspondents were flocking out

Diversification

mergers

race-

cyclical, but we ho YY7 I don't mind them1 gone after in the slightest. Unquestionably
Y thf ir power as well as the power of other labor leaders should be
it exclusively. >
curbed. But one of the first things Congress should consider is
Evaluating Good and Bad
just hew these labor leaders got this power in the first instance.

longer

of Packard with Stude?
baker, and of the Chase National

billion, but I would

What he got was a

racketeers.

60% of
frofn non-

non-defense
for

and,, his

column.

boring,
Y

year,

came

and

demand

ment

profits

that

Pegler

•

industry. Last

plant facilities. Our slide-

spent more than 200 billion dollars

the last

fact

Portland.

his

over

stuff about Subordi—-

Brewster

his work.

years,

road

sizes.

that

would define it

the

and

the

Boss

paid for, at least Y
some of their upkeep, out of Teamsters funds. *
About a year ago two Portland, Oregon, reporters won the Pulitzer Prize for an exposure
of the evil doings
of Teamster officials in

•

graph
the peaks and valleys in that

comes

well

Even

years.

Teamster

horses

'I -X.

to draw you

were

AUe's

almost any company could be ex¬
cused for sticking to the things

American

"Fortune" Magazine writes: "Here
at the height of the most
prosper¬
ous
era
in U. S. history, when

nate

divergent.

then,

for

Foundry

leader

cyclical markets.

diversification

external

equipment business, but
certainly
know
something

in
A current example

the subject -of defini¬
should remind ourselves
that the words "diversification,"
"merger" and "acquisition" are
not synonymous. Merger and ac¬
quisition are two of several ways
of enlarging a company. Perhaps

on new

air for

railroad

expansion

product

different forms
a

still

division

and

Diversification,

ciar«

that,

present-day

blow

devices

American

Our

American

the

business, but today Buf¬

Forge

example is furnished by the rail¬
road equipment industry. On this
subject you might call me an
expert: The old American Car and
Foundry Company, predecessor of
ACF Industries,
originally made
railroad cars almost exclusively.

applies its knowproduct that is
current lines, as

when

The only way I can explain it is that'I have become com¬
pletely perverse. There's no other way to explain the fact that
while I sat watching the McClennan's Senate Committee investi-

air

the

air conditioners.

divergent

be convergent or

can

industrial
and adds

its

Some of

of the News

By CARLISLE BARGERON

remember

still

Ahead

arid

it would resemble a
profile of the Rocky Mountains. It
familiar areas.
is furnished by ACF's own Carter would also point op very clearly
Carburetor
division, which has the reasons for diversifying our
//; YYY ;
Y *
developed and soon will market fields of activity.
fuel injection to join its other fuel
In the old days, almost 100%
system products. Obviously, in¬ of our income came from the rail¬

New

describes

make

describes

examples of
c ompani es
which have.

company

enough

Washington

gation of Dave Beck I kept pulling for Beck. I have never known
tne man, never met him and unquestionably
Y
Another major reason to diver¬ X he and his fellow Teamster officials have been
> eating" high off this' hog of Teamster funds. /V • ;
sify is the desire t© offset seasonal
Y
;? Westbrook Pegler has been exposing them Y
qr cyclical demand. The standard
falo

Foundry Company,
once
exclusively a manufacturer
of heavy equipment, added chil¬
dren's
toys
and
automatic pin
setters for bowling alleys to its
line.
Convergent
diversification

degree

some

how

unrelated

Machine

di¬

versified

occurred

larger com-, :
panies which

Diversification

when

old

Buffalo

them.

credit, aids economic growth; (3) does not destroy small
business; and (4) intensifies competition. ACF head evalu¬
ates the pros and cons of diversification, major types of diver¬
sification, motivating factors, and impact upon companies,
employees, community and country. According to Mr. Dark,
"desire for growth" is the over-tiding reason, and other con¬
siderations involve offsetting "declining or non-growth mar¬
ket" or compensating for "seasonal or cyclical demand."
diversification? How important is
it as a national phenomenon? It is

From

once

windmills

for

pumps

ate

jobs, more plentiful goods and services, more
scientifically run firms, higher profits; (2) improves firm's,

can

obso¬

Buffalo

bellows for blacksmiths.

(1)

Leading industrialist contends intelligent diversification:

i
-

to live.

that elected

President, ACF Industries, Inc.

technologies

makers

harnesses,
harpoons and hatpins literally had
to diversify or die. Buffalo Forge
is one example of those companies

Bad for America?

The

every year—

commodities

Form" Phillips Inv. Co.
YUMA, Ariz.
PhilHps IpVestment Co. has been formed' with

offices -at 47th .Fifth. Street. Partne^s are Charles D;; Phillips and
Sidney S. Woods.

Volume 185

Number

5624

The Commercial end Financial Chronicle

;

(1455)

>
'

Mortgage Market

able

some

increased volume. But when ' Or should government funds, di-

President, T. J. Bettes Company, Houston

The.best

V:jincreased volume, Mr. Austin <draws

tive, as far
lor

insurance

appraisals

downward loan tread;

requests -for

these

trend.

continue
;

These

which

are

will

The

underway;
the

what

balance
the

for

thing

terest rate policies with
to insured and guaranteed
and
government actions.

Market?

One

seems
we

—

not

Last year,

see

changing type
of picture that
did

should

last

amplications"
aPPllcatlons are
are

vear

year

off

18%'.; As compared with Januarys

year',_
•Under

loans

tration

notable increase in both

the

and

rate

volume

absolute

00,r.

and

the

Veterans

Adminis-

loan guaranty
^

Zffie
'

program

requests for annraisak

KOO-

see

•

llc.

volume

changes, to be
sure,
but I

bank

credit.

Funds

Hear

clear

for

prospect

complete drying

inves

for
not

beVeeaume?LWrjrnW^"ron''kt*
because

tne

supply

was

con-

the' most

array

almost

submis-

sions.

We have, in this
others so vivid, been

attrac¬

case,

victims

sPecifically

1957 Prospects

the mort8a83 money situation we

Let's

final

look

Standpoint:

1957

should

take

the

ing

each of the three main tyPes oi
3^0^^ Ending institutions

een-trated

liquidity

eon-

year,

prnwth

nni

mortgage

acquisitions.

this spring, the downward trend

rp_

in FHA volume should be halted
ai?d Z ^ht ossume somethi^

of this

^
mlvftable delSite Whatever mar¬
"ifVitable .d<isptte whatever mar

°r liquidity, they will certainly do
lar8er volume of lending.

All

be
done by a rate increase, if that
should somehow come about, but

Qrbut a small fraction of this win

any-

mar-

iPnrJ

_ftll-re<,

conventlonal lend"

at worst, the VA program Vi

Life insurance companies, hav-

account

for

ibUity

150,000

assumptions

These

j"g
off, last
year 19o4
the
laree worked
commitments
made

lias in the Painty of a

increase in the number cf

■

flected

unit

ZS conventionally financed units to
PerhaPs. as ™any a? 650,000. J&
on improving their
believe they will, money conposition-and therefore jS.^5
„glito/ase somewhat

loan aS60ciations, last

see

un-

likely

starts,

indicate

the

total of ,>000,0W

ai_.-

or fewer''units this year.
and with the extraordiNineteen fifty-seven will be
hf^ WpU
Sa^Su°f Uw® insuJan+ce another year of adjustment, for
slowly formed
1
and
should
The Chairman of the House P
?n mortSaSe bankers. It will be a
Bislially' Ibe situation will be yeterans> Affairs Committee has in.^be mortgage market, this, in year in wj1icj1 those who are inbe able to
F. Austin, jr.
n?ucbJtbe same
but there expresse(j the view that the con- - spite of continued heavy demands terested in the maintenance and
ticipate them
somewhat
should be a noticeable change in cern of hig committee is with the
m other investment areas. That advancement of a free market
better. The tremendous influence
ouarte^'o/tte^ye^r h^T bAn veteran and not with the Predica- ^mlwhat ^e^than' ""wm last
must be constantly alert
wiifbfkee
°,v fh
h'
legiS!ati°n'
ST
The
'change
is
this:
TheHe
coumt
will
will be keenly
felt by our Induswill
sta
1
nousing marxet. ne
.
hat v,annen<? to the iir
1 ^
uie iuxmauon uit%g£
policy.
try. Mortgages and home building what fasLr than^n 1956 30^^ has
also lndicated "that amPle va rate and hoV^weU the FHA We mu&! noJ relax our attention;

think they

will

because tne supply was con-

unbelievable

resolved

of the high state of prosperity
Specific Mortgage Supply Sources enjoyed by the country as a whole.

restrained in"e in^e only
thi,n<Ybut
a continued decli"f.?nfgC°UrSe'
.be
h°Pe for averting practically
8'
of

over-

oppor-

every quarter. This

tive opportunities from

questions

but

all

enabled them to sit back and

pick and choose

during the present session of the
Congress.
,"

been

whelmed with investment

They should continue to grow this
wit?year and, with their higher degree

over-all, we had the

ble by a

last

There

year.

greatest outpouring of new credit
in history.
This was made possi-

of Previous years, 'current volrespect.ume la&&ed behind every postwar

expect
hold

year

have

trusts

^ !-ea °n^1 ...5^2.: find some definite .reasons for
: ^CoU?ag7r^X when^^^vou take market Pr<*P"*s from the hous-

stacles created by unrealistic in-

well

now

can

the

Mortgage

certain

will

1957

adiastment

; softens,, the impact considerably
and in comparison with January

tion and lending industries.

year

seasonal;

of the

already

cases,

borrowing tunities
from
has

for tapping Pension Funds.
Reviews principal legislative developments affecting construe*

1950

bcr

and notes encouraging, prospects

some

have

tions, life insurance companies and mutual savings banks,

and

downward

altemative

are

attempts have
not
been
completely without success; however,
in
recent
months
the
pension

medium, leaving the residual VA
to die on the vine?
j

ident anticipates greater strength by savings and lean associa¬

;

and

Although total .applications for

picture for insured and guaraa&eed mortgages. The MBA Presi-

;

applications

are

fact

in
quite suitable to
investment
needs.
These

their

program

FHA and VA loans

concerned,

their

t
Loan

indications of the fu-

isolated

rectly or indirectly, be used to
keep
the
program
going?
Or
should FHA be modified to pro-

«V» Tr^a
Trend vid^ ^

FHA va
FHA-VA

are

different

Downwam
Downward

•

it is

and guar-

I *

and

can,

the insured

sector,

story.

;

Possibility of a total of one wilfioa or fewer Irome units fbts
year is postulated by piortgage banking head, in foreseeing
more
of an easing in the present mortgage market. While
conventional lending possesses brightening prospects for some
;

teed

By JOHN F. AIJSTIN, JR.*

continue

look at

President. Mortgage Bankers Association of America.
^

i1*

allowed in effect to lapse because
go along as a sub-market interest rate shuts
it has during the past months, them
out of the market?
Or
with, -brightening "prospects, for. should the.interest rate be raised?

The

j.)

Conventional lending should be

•

rtpmand'

•

rparhPH

-f

- rate increase which

^mArPrPHpnlpdiv
unprecedentedly

larSe commitments made in 1954

has already

been bounced around by Congres- and 1955,
si0nal committees. •
:nary

•

—-w—mmb

an¬

john

Qnnniv

havp
nave

alrpadv
already

time

haH
nad

the

hit

pnnH
good

national

tinue
this

also

but

vear^ln

sbotlieM

that

vear

which

there

con

This

•

Tlood

of bills- and in which almost

anv

Legislative
Extensive
conducted
terest

rates

teed home

veterans'

National

Association,

Mortgage

authori-

Federal

and

pro-

modifications of the FHA
structure, intended to provide

posed

form

some

substitute

and

thk

i<;

the

for

year's end/ In such a case, the
Federal Reserve would no longer

Throughout all this the interest
question stalks like a troubled

feel obligated to keep its present
tight rein on bank credit.

loan

mptronoli-

guaranty

in this respect. / "

vA,

°w

and VA rates stand up in a still

must not pass up our oppor-

tunities

can

assured

porrmetitive market

progresses

I think the savings

banks will be back more strongly
in the market than they have been

/ •
it

F,lmwaU

nener, urunwdiu rormcw
for several months, for the same - .Heller,. Grunwald & Co. has

insurance

gram.

group.

Are their privileges to be attempts to

City, to

show that mortgages Norbert b. urunwald.

■

rate

ghost.' To the Congressional mind
it

•

frightening specter which

no-one

face.

cares

Instead

This prospect indicates that we
see

tion

ahead—a

situation

circumstances to be construed as
sale or a solicitation of an offer \to
of such securities. The offering is made only by the Prospectus.

This advertisement is not and is under no

offering

somewhat easier situa-

will

which

buy

any

of these securities for

getting rid of it by the
simple magic of a rate increase,
the tendency is to try to find an
escape from
it by every device

the mortgage market should be
able to take swifter advantage than
the bond market because of the
builder's ability and need to in-

imaginable.

crease

boldly

190,000 Shares

...

addition

have

the

matters

affected.

be
aid

are

changes
Act

affecting

ment,

real

known for some time but an at-

mutual savings

invest-

create

ex-

number
and
lending. All in all about 200 bills
which touch our fields of activity

mortgage

have

Increased

for

As
,

Construction

demand will function
have historically.

expect

market

the

one

million

see

place

itself,

vear

will

artificial

ob-

this

"An

address

Southern

leans, La., March

Austin before.the
Conf-rence, New Or-

Mr.

Mortgage

21, 1957.

Copies of the Prospectus may be obtained from the undersigned only
in those States in which the undersigned may legally offer these securiI

ties in compliance with the securities laws of the

even
case

Van Alstyne,

Crowell, Weedon & Co.

Noel & Co.

Shearson, Hammill & Co.

Paine, Webber, Jackson & Curtis

they

Goodbody & Co.
J. C. Bradford & Co.

from

thic

Dempsey-Tegeler & Co.

Bateman, Eichier & Co.
March 22, 1957

lot'c

pvnpripnfp

A?d trom ttUS experience let S

* try to

read the crystal ba.l.

respective States.

same

E. F. Hutton &

Company

Johnston, Lemon & Co.

our

a
,

live,

Association; I have had
a chance to talk with representatives of a wide segment of our
financial community and I think
I have gained some very valuable experience.
of

houses

attributable

Price $11 per

Since October, I have done a
good bit of traveling around this
country of ours for and on behalf

Financing

gradually, increasing availability of construetion financing.
Failure to attain

Common Stock

recently—the forces of supply and

introduced.

been

American Electronics, Inc.

mosphere in which we can
banking laws prosper and progress.
The
of ways, bear laws will continue to apply
construction more so than has been the

banks, and

review

which, in

Federally

tensive

estate

proposal

<?vstem

themindustrial

Among

depressed

for
small
business,
the Internal Revenue

aid

areas,

rapidly.

chartered

mortgage interests might, in someway,

quite

money

there
are
many other subjects of legislation by which the building and

production

1 d° n°t foresee a period of easy

by any means—more an
easing of our present situation.
ft *s altogether probable that we
stand on the threshold of a new
economic era — and has been
voiced by; many others, but for
diverse reasons; it may well be
an
eifa
in which we have a
chronic shortage of money — an
atmosphere that we have not

mentioned,

already

tunnies, we can oe assurea or
,ni8niy competitive maritet.
the soundness of what we stand
Mutual savings banks have.,for, and trust in the ultimate rebeen in a situation not greatly, wards of our patience, persistence
dissimilar from that of the life and willingness to work towards
insurance companies. As the year these goals for which we stand.'hiffhl

•

pro-

terminating

living

nrimarilv

"A
.

guaran-

additional

the

vpt^ranc

At the same time, consideration reasons,that 1 think the
,been formed with
at
' Easier Mortgage Market Ahead
hag tQ be given to the fact that companies will be back.
^
Broadway, New York
enAs a result of the drop in resi- for some 6.5 million men who
The prospects for tapping the gage in a securities business. Sigdential building, as well as the" served during the Korean conflict-Pension Funds are, at least, en- mund O. Heller, a principal ot tne
now probable easing of industrial
period the benefits of the Serv- couraging. There have been and *JrrrJ» will be located, in the New
and business demands for capital,, icemen's Readjustment Act do not continue to be, attempts by van-. York, ottice.
•
institutional investors are likely expire until Jan. 31, 1965. Hence, ous groups to interest those who
-A branch will be maintained at
to- find
themselves
with
more the additional question of what guide these funds in the acquisi- 225 Last Redwood btreet,
funds than they anticipated at last is to ' be done about
this large tion of mortgage investments
management oi

of in-

loans, the future of the

for

cinwlv

beenAanticipate for 1957?

have

the question

program,

zation

Developments

hearings

+hp

Now, how will the Mortgage The direct lending bill that he
business fare in the climate we has sponsored is strictly limited

Opportunity has been provided to

thing could haoDen
.

somewhat

growi

veterans living in metropoii
slowly and tnis is primarily tan areag tQ exercise their rights
!3e?uf ^
a. ea1y t0 the benefits of the loan guar^a<J. 1
f'K?i oa!y * anty program, and that, as he sees
^ the housing sphere but also-in it> the remaining need is limited
plant exPanslon and» possibly, t that
the veterans living in
even in consumer buying. >•
remote towns and rural places,
mnrp

only

not

will

demand

legislative

snotlieht and thev will likelv

mm?

arnw

Iaster tnan m iyoo ana tne.

of
ot

bit

Emanuel Deetjen

& Co.

Morgan & Co.

Walston & Co., Inc.

Lester, Ryons & Co.
Prescott, Shepard & Co., Inc.

Wagenseller & Durst, Inc.

Tr¬

The Commercial and Financial Chronicle

(1456)

better
what

THE MARKET.

prompt
the

incentive

decisive

any

stock

action,

market

lolled

and

this

efficient

year

facilities

good demand for its cast

pipe and fittings, a field
in which it accounts for about

production. Moreover, it is
unimportant in the alu¬

half of domestic
*

VThursday, March 28, 1957

Corp. Elects New Directors

The First Boston

Corporation, 100 Broadway, New York City,
has announced that Robert L. Harter, Andrew N. Overby and Ed¬
ward Townsend, Vice-Presidents, have been elected to the Board
of Directors.

production.
:

First Boston

increases,

iron

STREETE

By WALLACE

With

AND YOU

new

earnings
price

with'

not

minum

scene

and ranks

General

the

Railway Signal has

also had a mundaneb market
again this week mak¬ fourth largest producer of
ing the current stalemate one primary metal. The fact that experience since it was split
last
year.
The split shares
issue
was
available
at
of rather unusual duration. the
around

February sinking around a 30% trim from its
spell that didn't go too far, peak made it something of a
the market has marked time bargain item, too. This, in¬
essentially for the better part cidentally, discounted the fact
that last year the company
of half a year now.
was able to boost profits sig¬
A Stalled Market
nificantly and scoot into the

Except for

The stubborn refusal of the

list to go either way was so

pronounced that
market students

some
were

of the

No.

18 slot in the list

nation's

of the

money makers.
Kennecott which has been a

already top

top

have lolled in
a

a
range of half
points since they ap¬

dozen

peared,

although General is
expected to be a prime bene¬

ficiary of railroad automation
which, in turn, is the bright,
new

rails.

The

levels

has

stock

been

recent

available

don't

fact

that
to have

seem

sales

auto

spurted in

the traditional

spring pattern
specific weight
market, although it

added
on

listing

issue

the

last

Ne(w York Stock Exchange.
*

Other

drug shares, too, had

business, in various in¬

ment

spark

any

concen¬

good news to report to keep
the market enthusiasm.

50%

still

were

United

the

International Monetary
Mr.

Townsend, who

joined First Boston in 1946 after serving four years

the

Ordnance

of Yale

Central

over

Bank.

failed

the

exceed

selling.

first half year should
that for all of last

Among the oils, where

Copper issues that had had
their

rather

its

after

drastically

with other makers of
road building machinery in
last year's enthusiasm.
But
this hasn't altered the bright

occasional

favorite

able

was

gyrations re¬
out, Atlantic Refin¬
outlook of the company over
cently as the price of the red ing has been buoyant and by
the
huge highway program
metal
dropped from an his¬ most market yardsticks offers
which will
provide!^ 10-year
torically high level were able among the better values
demand. The company's prof¬
to stand their
ground well for around. It is selling at only
its were in something of a de¬
the most.
Some of the fat
approximately nine times cline until last
year
when
earnings resulting from the earnings—a low ratio in this

high-price
ster

helped to bol¬ group—and about equal to its

era

sentiment.

Predictions

that the worst of the
copper
decline was over also were a
boon

stand

timid

book value.

copper

been

dividend hike is in

the

prospect,
The pros and cons over the
different
copper
situations
were

the

Anaconda

familiar
was

favored than most,
cause

world's

has

ones,

rather

the
pro¬

ducer. It accounted last
year
for about a third of domestic

close to

issue

would

offering

yield.

\The
article
time

Proposed

Revision of "No-Sale"

need

sale"

"no
'Rule

"The

SEC

of the Re¬
announced
in Realease No.
3698, was dis¬
cussed
by, Securities
and
Ex-

not

They

those of the

necessarily
those
are

this

at any
of the

presented

t h e.

Sargent
C.

James

fol¬

sion

these

from

Rule

have

abuses

the fraudulent

133.

you

interpretive

use

know,
expres¬

Commission that for
purposes
of registration of
securities, 'no sale' is in¬
the

the
new

volved

ties

the

issuance

of securi¬

certain types of
statutory mergers, reorganizations,
consolidations,
and
reclassifica¬
pursuant

securities.

tions

securities

Inasmuch

not to

registration
act

rule

are

has

not

been

abused

curities sold by
were

rule,

requirements of
applicable.
The
and

the

'freed

up,' in reliance on the
and resold to American in¬
registration

Pipe has had

placid

market life for the most since
its

4-for-l

split in 1955 and

lately has subsided to where
it

also

bracket. It is

the
a

yield

candidate for

With Geddes, Andrews

"On

(Special to The Financial Chronicle)

GRAND JUNCTION,

Irving

1 o.

proposed
—

Andrews,, Jr.- has be-'

come> connected

with

G edd es,

Andrews & Co., 2632&r F

Dec.

Road./

1956, we issued a
revision
of
the -rule,

which, in effect, would have re¬
versed our. present position and
would have .required registration
of securities issued in such merg-

crs,eonsolidations,Teorganizations

statutes

the

position

would

effec¬

deal with the problem

approach the Commission

presently exploring.

The Com¬

welcome any rule or

which

amendments

statutory

might be submitted by interested

persons."

Krensky Adds to Staff
(Special to The Financial Chronicle)

CHICAGO,
lan

has

been

of Arthur M.
141

West

members

Midwest

Kap¬

111.—Herman
added

staff

the

Krensky & Co., Inc.,

Jackson
the

Stock

Boulevard,
New

and

York

Exchanges.

Joins A. C. Allyn

require¬

taken

which

out

mission will

(Special to The Financial Chronicle)

ments of the Securities Acts.

U. S.

anti-

and

the

change in the rule may be

another

se¬

the 'boiler rooms'

administer.' In this let¬

have

ment to

that word is defined

to seek a
with the

tively deal with the problem. Con¬
sideration as to a statutory amend¬

by
Section 2(3) of the Securities Act,

'sale,'

disclosure

enforce¬

and

consistent

which

issued—pursuant to

the rule—are deemed

disclosure

worked

our

'in light of

133

experience,

principles

that

the rule is

doctrine

sale'

'no

fraud

ter

Sargent

lows:

letter to Mr. Ches¬

Rule

fundamental

subject,

stemmed

administrative

ment

solution

vestors without benefit of the fair

author only.}

so-called

our

re-

Lane, Chairman, Committee

underlying

Houston, on
March 15,1957.
In discussing

"Some

an¬

York,

the

ican Society of

the Commission has
expressed the view that it is in
the public interest to reappraise

Regional

stated

This

uncertainty

any

New

Group, Amer¬

this

is made

sociation of the Bar of the City

Houston

retaries

the

until further

Administrative Law of The As¬

ad-

pres¬

announced

that may
exist as to contemplated action by
companies in the area covered by
move

ter T.

Sar¬

problem.

study of the
nouncement

the rule.

i ssioner

James C.

the

with

coincide

has
last

133,

Com-

cnange
m

Rule

not

adopting

3698

No.

Release

week,

this

does

contemplate

ently

postponement

vision

that

revision of Rule 133

scheduled revision.

this proposal.

Commission,

announced

Sargent, necessitates hold¬

ing

industry and the Bar

Letter to Mr. Lane

133, according to Commis¬

sioner

the written
by all
seg¬

and
submitted

ments of the

1957.

17,

record

the

hearings

with regard to

study further the
doctrine underlying

Public hear¬

Jan.

reviewed

have

material

The

major
graduate

as a

Army.

held

were

these

Regulation No. 133

the

expressed

views
do

half

re¬

ings
We

the

finally

stock lately

The

"Chronicle "
as

but

largely be¬

emerged

come

largest uranium

versed.

expect,
*

hasn't

indication

some

was

overly prominent since been available
digested Houston Oil prop¬
fol¬ erties. If, as some quarters year's peak.

lowers.
*

The stock

there

that the trend was

the

and reclassifications.

SEC Defers

gent in

runup

year.

Copper Pros and Cons

Mr.

Department

University, Mr. Tov/nsend had previously been associated
Hanover Bank and Trust Company, new The Han¬

with

that

Vice-President in January,

Corporate Sec¬

gradual

Fund.
elected

was

1955, is associated with First Boston's Underwriting Department.

of its old
crease of
only about half that cyclical nature
subsiding slowly which, also,
operations.
much.
Eli Lilly,
the
major
was
J*
*
*
hardly an incentive to
Salk vaccine producer, esti¬
spur
aggressive purchasing.
Baldwin-Lima-Hamilton in
The downdrift, however, was mated that sales of this item
recent months has subsided
start any scare

States

the corporation in March,
1957, is concerned with all aspects of the investment company's

dress before

sales in¬

Department.

Assistant Secretary of the Treas¬
Director of the International Bank for
as

business with particular emphasis on international and monetary
affairs. Prior to his service as Assistant Secretary, he was United
States Executive Director, and later, Deputy Managing Director of

for

Steel operations

and

dustrial

machinery,
motors
appliances and its man¬
trated
selling in the issues in¬
American Home Products ganese mining operations. In
volved.
recent years the company has
lifted
*
*
*
profits last year by
diversified to end the highly
more
than
failed

Overby, who resigned

Reconstruction and Development to join

year

stock payment. The
company is an important fac¬
tor in the gauge and instru¬

the voring

some

the

over

earnings. There makes it a candidate for some
thought being given liberality, the consensus fa¬

some

Mr.
ury

Sutro & Co., both of San Fran¬

He is connected with the firm's Sales

times

The

twice

earned

source.
or

1944, first joined First Boston in 1931.
A graduate of the
University of California, he was previously associated with

money

have been rated at around 15

news

Edward Townsend

Andrew N. Overby

tion in

cisco.

some

Harter

Mr., Harter, who was elected a Vice-President of the corpora¬

Crocker First National Bank and

less than 10-times-earnings,

maker steadily is
Interesting Sleeper
on
record1 predicting a con¬ in No. 16
spot, with Anaconda
American Machine and
tinuation
of
the
stalemate now in
position to challenge
Metals has been in the dol¬
throughout the rest of this Kennecott's leadership.
drums
for
an
even
longer
year. The last period of such
Drugs Stand Out
period. It held in a 10-point
indecisive action over a long
The drug shares, and par¬ range last year which was a
pull was following the 1946
market break and into 1949 ticularly those that produce tighter band than
it had
when the long upturn started the Salk vaccine, were among carved out in the two previ¬
the better-acting sections of ous years. So far this year the
in earnest.
the
has
narrowed
even
undistinguished over-all range
more, despite record sales and
It is a simple * matter to market, tales of a shortage in
the vaccine naturally firing a earnings, a yield of around
show an even longer market
and at a price only
bit of speculative zeal. Allied 51/2%
stall. For more than a score
some
seven-times this year's
largest
of months now one 500-stock Laboratories, second
estimated earnings. The com¬
producer of the polio vaccine,
average has held in a range
had its vocal champions pany seems assured of boost¬
of 49.74 high and 40.80 low.
largely because the company ing profits this year since it
Being approximately in the
turned in a doubled net per is operating at higher levels
middle of the range currently
than it was a year ago.share
last
year.
Moreover,
makes it a pretty safe bet that
if
if
if
Allied
has
been
silling
at,
it will be some time before
around nine times earnings
The fact that American Ma¬
there is a breakout, barring
where comparable companies chine's current dividend was
any sudden drastic shock
from

Robert

promise for the harassed

KANSAS

Kelsay
with

CITY,

has
C.

Mo. —Oris

become
Allyn

and

connected
Company

Incorporated, 101 West 11th Street.
Mr.

B; C.

Kelsay^

was

formerly

Christopher & Co.

with
"
' >

Volume

185

Number 5624

OUT

(1457)

Chronicle

The Commercial and Financial

Electric Annual Report discusses

NOW—The General

\ i -4

•

The

owner

participation: Open house at

General Electric's record of

$4 billion in sales
progress

for

than

during 1956 meant

many

improved products to help Amer¬

icans live and work better

—

electri¬

cally. A record 362,122 owners bene¬

General Electric plant

education and
as

the gas

There
search

"super-strong" metals, atomic-electric
and jet engines (now in the

power,

world's fastest

ord

compensation and benefits, and

broader

opportunities for self-devel¬

opment. Many
nesses

thousands of other busi¬

found mutually

rewarding

relationships with General Electric:

made in

soon

to power

Progress

was

developing leaders with over

3,500 General Electric people

New and

•

News in

sales

of every

sales dollar. And there was

ress,

progress

for

many

areas

prog¬

in the 1956 Annual Report, now

available.

—

industrial

Pp. 4*5

earth satellite, mis¬
siles, atomic electric power. .Pp.8-9
•

Developing leaders for the future

•

Pp. 10-11

growing nation

Progress for suppliers, dealers,

other businesses

........

•

New business in gas

•

More defense

dollar
•

for

Pp. 14-15

turbines P. 16
the taxpayers'

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

1956 financial review.

P. 17

.Pp. 18-29

would

of the Annual Re¬
port,

icrite Dept.

2-119E, Schenec¬

tady, N. Y. If you
own

Progress Is Our Most Important Product

the

General Elec¬

ELECTRIC

name

er, or
or

automation

Progress

tric shares

GENERAL

;P. I

i.;

likea free copy

complete details of

other

•

If you

You'll find

v.,

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

studying

professional management.

suppliers alone were paid almost half

citizen in General

planes,

commercial airliners).

these, and

every

turbine.

in "heatproof" electronics,

progress

and dividends.

rec¬

fields

development, including

fitted from increased sales, earnings,

Employees gained

new

major advances in re¬

were

and

pioneering

•

,'.

improved products that
helped General Electric appliance
sales reach an all-time high.. Pp. 2-3

Electric's contributions to defense, aid

such

people.

Progress for customers came in new
and

a new

(Presi-v'

opportunities :ahead

dent's Report) v

held in

brok¬

in the nominee name

trust

company,

2-119R, and we

larly

our

of a bank

write to Dept.

will mail you regu¬

share owner

publications.

The Commercial and Financial Chronicle

(1458)

where

THE EDITOR:

LETTER

not,

Pending Meigei Bill's Harm!ulness
Is Exposed by Noted Expert
now

this Bill will have

whether

basic

Bill's

medium-sized

alternative
of blocking
our

Editor, Commercial and Financial
Chronicle:
t

thought

views

the

Committee's

would

than

-mmore

®§

days

contemplated
where

mergers

the

purchase

price of the
company to be

acquired
ceeds

worths

Burck

Judiciary

the

Assistant Attorney

eral

Last

Bicks,
Gen¬

Division.

Antitrust

the

combined

net

million.

$10

Committee,

November,

debate

the

informally with Mr. Bicks

substance

views

the

set

forth herein,

following which Mr.
Bicks
urged the undersigned to
testify to the same effect before
the
appropriate Congressional
Committees.

the

House

cne

the

it is stressed that
soundly quarrel with

can

basic objective of

actions

able

the

the bill: to

government

opportunity
which

trans¬

counter

run

anti-trust laws.

reason¬

block

the

I differ only with

the

This legislation, in my opin¬

method, since I believe that
this objective can be achieved by

ion, will unintentionally but in¬ alternate measures which will not
evitably bring hardships to the impose severe hardships on cer¬
vast middle group of businesses tain
segments of the business com¬
which

depends,

future

could

and

the

tort

the

natural

America

thereby

growth

dis¬

our

economy:

(1)

My views also stem from

growth of thousands of

me¬

dium-sized companies in the

of $6

range

million

$25

net worth.

(2) It could harm another im¬
portant
business
of

ers

segment

our

least

95 %

valid

seek

may

businesses during

This

acquisitions
raises

turn"

the

community which is lawabiding in order to make it sim¬
pler
to
catch
the
5%
of
the

ness

acquirers

which, unintentionally
otherwise, ignore the anti-trust
the

least,

very

the

Committee will want to weigh the
done to the vast majority

alongside

the

minority.

small

the

need

curtail

the

other

IV.

for certain acquirers whose activi¬
ties may not be in the national
interest:

It is respectfully submitted that,
as

practical

matter,

this

pro¬

posal will work serious hardships
(1)
meclium-sized
acquiring

(1) The corporate giants which
can
acquire what they want

through

Subtle Reasons Why Bill Will

Impose Widespread Hardship.

impose no real obstacles — and
may
indeed create advantages—

economic

strength

companies
above

having
net
worths
million, and (2) sellers

of businesses

worth

than S2

mere

flyspecks in their

plans, and indeed they
be

deal

may

indirectly aided by such

These
from

visible

from

legislation.

consequences

and

cause

the

subtle

the

not

ensue

effect

which

surface

but

factors

are

rather

which

are

activity

if they

with

and

able
The

detailed

These

midst of the marketplace for

set

are

forth

Stem

Varied

Mergers

behind

reasons

Views

Years
in

profit¬

exploitation.

views

these

for

and

below:

From

Experience

Reorganiza¬

weighing these views,
it
be kept in mind that the

undersigned speaks from
ground
tion

of 19

and who therefore appreciate

gers

the delicate

market

inter-workings of this

which

particular

often

merger.

tive factors

can

series

generates

These

the

years

field

back¬

of specializa¬

acquisitions,
reorganizations. As

(a)
the

get^ their

slow

ac-

ness

having

Company, a busi¬
price of $3

million, and for valid
wanted

find

reasons

buyer.

reaches

size.

capital

Credit

conditions

make

may

and

■

lack

mandatory

Unfortunately,

merger.

and

smallbusinesses are

medium-sized

always at a disadvantage in our
capital markets. Until legislation
corrects

this situation
perhaps
thrcugh tax incentives—the small
entrepreneur often has no choice
—

except to seek out

(3)

merger.

Technological

forces

obsolescence

companies

many

find

stronger partners.
(4) Time often erodes the man¬
agerial competence of enterprises
which

flourished.

once

The

hard

our

busi¬

fact is that thousands of
nesses

are

injection of
which

real

need

talent

new

and

the

ideas

they

$3 mil-

exist if the

the

deal

interest

already

These
the realities of today,

are

Now if you

additional

superimpose
delay

60 day

buying
activities of many companies, is
there any* doubt that intermediwill

aries

channel

deals away from

the

their

flow

such companies?

small-

medium-sized

company

which will be

reQul^erotn^s where the parties

can demonstrate that tne wait
' large serves no purpose, or would be

hurt;
the very
companies rely less cn intermediaries

since

*or tbe waiver by the appropriate
J authority] . . . of all or part of
the, ^notification and waiting re¬
QUirements in appropriate cases.
'• ; •
1 ass.L;me thaf he aPPr°Priat,e authorities will, largely on an
acl Pc basis, dispense with the

the

f^ t^ the+ blP? Pr0v*sl0n
j:or. establishment ,of procedures

the

expeditious acquirers.

harmful.

afford

can

stockholders.

tional

From

the

na¬

standpoint,

this entails a
great waste of capital which could
be

productively

elsewhere.

The

ers

take

use

of such

There
for

and

over

employed

national

is thus furthered when

welfare

new

effect

own¬

better

capital.
other

are

but

mergers,

good
the

reasons

important

point is that if they are artificially
prohibited not only will our econ¬
omy
in general suffer but also

hardship

may occur unnecessarily
important groups: work¬
stockholders, suppliers and

to many
ers,

entire communities.
'

VI.

The

Basic

Objective

the

Bill Can Be Achieved Through
Other Alternatives.

Perhaps the above consequences
might be justified if satisfactory
alternatives
this

were

is not the

unavailable. But

the following
examples of satisfactory solu¬

are

But such waiver comes too late
maintain a staff to seek out suit- in the process to check the chain
able acquisition opportunities.
of events which is set in motion
(c) Let us suppose, however, prior to the time the parties are
that X Company does work out an in a position to apply for a waiver,
they

companies that have assets out of
for

COmpany faces much embarrassment when word leaks out of

with

pointed out, the seller of

are

case:

tions:

agreement
Y

sell

Company,

deal

the

for

marks

which

time

million

has

net

X and -Y then

government,
for

the

and

days. In
the meantime, the deal leaks out
certain

quirers

who

the

professional acdecide that X Com-

is worth $3.5 million to
They offer X Company that
and
a
"prompt"' closing
unaffected by the 60 day wait that
applies to others. It is probable

pany

them.

amount

will

lose

natural to expect

the

deal.

When

will

deals during

the 60 day suspense

surround

the

have

waiver

stalking

borse

for

the

Inevitable Effect Summarized
T

In summary,
feet

such

the inevitable ef-

legislation would

granted. Rather

gamble on the possibility of
waiver, they will set their thinking in favor of buyers who can
without

move

moment

on,

delay.

From

large

from

that

category

buyers will in practical
preempted

effect be

dealing

with X.

Constructive

(a) Acquiring companies having
million

will

able

preempted to

extent

from

important

area

consider-

dealing

of the diversifica-

raising the figures at
is required so as to

notice

exclude medium and smaller

panies.
be

required

tion

worth,
may

where

involves
or

combina¬

million

purchase

be sound

(1)

the

$30

price

of $7 million. This

excess

com¬

For example, notice might

for

involved, there is

these

probability

that

tions

may

occur.

may

net

approach
reasons:

When larger companies

are

much greater

anti-trust

viola¬

By the same
token, the likelihood of violations

Mergers

Are

infinitesimal

among

(2)'If the corporate parties are
substantial
size, the dangers

Artificially Deterred, Our Na-

tional

inherent

q^-

Economy Will Suffer,
the proposed legisla-

course?

feet:

have one undoubted cf-

reduce

sharply the numSuch a result may

ber 0f mergers.

piease
fjnd

will

jority

many

please

the

informed

great

citizens

results

range

who

mediaries

if artifici-

probibited will

the

run

contrary

basic precepts of our capi-

talistic economy. While the activities

ers

may

some

not

professional
always

acquir¬

the

public interest, and while certain

tion

the

less

(3) As above noted, it is in this
that the activities of inter¬

ma-

fundamental

which

marking time for 60 days.

parties.

the

rumors

smaller

company which is likely to suffer
in the ways above indicated while

healthy and vital purpose—they

economic forces

and

are

fluence

are

"leaks"

troublesome.

appreciate that most mergers serve
a

during the waiting period

to damn all mergers.

easy
not

thoughtlessly

who

loiiows.

net worth in excess of $6

smaller combinations.

profes-

sionals and their coterie of finders.

will

than

most

Corn-

(a)
which

P^,10u* iC£mp?m?u 52 Y,s Pu0S^u 1 tion will

developing deals, and end

about

cast

owners

their intermediaries, first
for a buyer, they will
way cf knowing whether

pany, or

that this sort of

surveillance

you

Further

when

proportion to the amounts earned

buyer is General Mo_
expedition, they receive tors? I think not.
Also, as already
most
of
the
good
deals.
The
ncted, these large companies rely
amateur
acquirers who have not,jess on
originating intermediaries,
learned to move expeditiously receive submissions only from the
^ e
ve results, in my
novice
intermediaries,
or
when
™11 "ot *>* materially

act

were

sales

advan-

(2)

disposal of
or closely-

family

business

certain

compel

successful

ers> ^ sboidd make more situations
available to the giants.
As above

ally
of X

because

jjon

That is why
and professional

known to intermediaries that

best be illustrated

Supposing the reader

advantage

Competitive

a
prospective
sale
to
a
littlealways concluding so known $g million
company.
But
acquisitions. Because it is wouid this same embarrassment

many

owner

great

the

omy

acquirer.

certain companies

subjec¬

hypothetical situa¬

buy

the

tage

knngs about a deal with

'fast

tions:

tions.

should

mer¬

the meantime some-

will be left only theMeals that the
(2) The "professional" acquirers largely subjective. Perhaps these
astute acquirers do not want. They
subjective
factors
are
will find
patent
only
opened up vast
will spend their time and money
to
those of us who live in the
new
areas

ripe

could

in-

intermedi-

doubt that

money

tied

quirer

that

will find that its restrictions- .million.
are

medium range, origi-

time and

notify

hand, it will

the

Thursday, March 28, 1957

inevitably
held

take

consequences

worth of $8 million.

the coming years.

(b)

you

change of ownership usu¬
\./{
isf Dur national econ- ally entails.
betterec]/by legislation which
(5) Many companies tie up more
aries with company to sell will will tend^to bring about sales to
capital than is warranted by the
avoid like the plague any acquirer the less logical acquirers rather business needs or
the return there¬
who has to wait 60 days.
Put than to the corporation where the on to their
stockholders; in large
yourself in the place of a broker seller's business appropriately be- part this capital has accumulated
who has just been given authority longs?
during the past 15 years of lush
to sell
X
Company for a price
(c) The corporate giants have earnings when, whether justified
of. $3
million.
Self-interest reeconomic strength so that they or not, the principal stockholders
that such intermediaries can aCqUire at
quires
will, whether or have plowed back earnings rather
deal to the extent possible with nojthan pay dividends which would
a gQ day wa^ js involved. Inacquirers
who act expeditiously deed) this bm
may help th
to be largely absorbed by personal
They are paid only if their deal the extent that it dries
The result is that
up
the income taxes.
closes, so that they waste their market
among medium-sized buy- today you will find thousands of
there is

matter

they willenjoy. On the as
and other intermediaries. To those sumption that these'
wil\ not be
of us who understand the thinking the
logical acquirers forVthese
and ways of these intermediaries, businesses,

acquiring
primarily

of hard economics that if

bankers, brokers, finders

harm

reasons

today's

question of whether it is fair
penalize the 95% of the busi¬

companies in the $2
range who for

sell their

that

problem of anti-trust vio¬

lation.

laws.

to $7 million

vestment

basic

own¬

community:

observation

personal

pose no

It will needlessly and harm¬
fully impede the
sound

munity.

range

ensue

through

acquirers

At the outset,

Celler, is examining this subject.
Summary of Views.

the

Bill Is Commendable.

The

Objective

million.

the

one^e

Basic

The

III.

above

substantial part of the speculators
(individuals,
syndiand sales of businesses in cates or smaller corporations) who

nate

afford

(a)

Robert

suggestion

Esq.,

submitted

are

than

unfortunate

then

(b)

•

views

Why?

disruptive to the

sellers

unwar- away this part of the buying marRegardless ket, sellers in
this
range
will
attempted, suffer. Inevitably they as a group
almost inevitably leaks out, will realize a smaller price, or a

the small to

lawyer, broker, tax adviser, finan¬
cial analyst and eight years as an
attorney in the SEC's Corporation
These

alternative.

matter

waiting period.

mergers

run

anti-trust laws.

Representatives, under the Chair¬
manship of Congressman Emanuel

which

transactions

choose

of what secrecy may be

to realize the

measures

mil¬

Subcommittee

Anti-Trust

ex¬

and

lion

exceed

Mr. Bicks was a
lecturer at the Conference
est
to
your guest
on
Mergers
sponsored
by
the
readers.
American
Management Associa¬
T h i s B i 11
tion,
and the undersigned was
proposes a
then afforded an opportunity to
waiting period

iBBypassing inter¬

Arthur

questions

Bill Reorganization Unit.

Merger-Acquisition

2143), which were placed in
Hearing Record,

(HR

the

and

in order to catch 5%.

proposes

objective

counter to

pending

the economy's growth;

major segment of the buying marwill be denied as a practical

ket

would

business

ranted

may

Burck believes

businesses;

fair to penalize 95%

Burck

Reader

serious effect

and

small-

harm

less satisfactory deal, if they are
seller's compelled to deal in a restricted
business. Competitors can use the buying market.
Buyers who can
sales rumors with telling effect; pick
up
the deals without the
key employees, uncertain of status, waiting period will be the gainers,
may defect; finances may be ad- As I see it, the bill would have
versely affected during such an the effect of creating gn area parinterregnum. '
V
'ticularly ripe for the activity of

merger

SEC Administrator

Former

committee.

trust

seller's

and

bill (HR2143)
being examined by Congressman Celler and his anti¬
dangers in the pending

writes of the

second

in-

not

liked

you

probably

Nothing is

word

Leading consultant in corporate reorganizations and expansion

would

Whether

you

the

wait

the

volved.

have

important in¬
pairing
up
of

the

(b) By providing that companies
in this lesser size
range may elect
to give the 60
day notice, but if

they elect
supply

not

the

to do so,

they must

the same
data when the transaction is
pub¬
licly announced: that if within 60
government

days after such

data

are

supplied,

field: companies which cost evils occasionally creep into the
suppose that you had the choice
and
the government
proceeds against
of dealing
(1) with Y Company $2 to $7 million. Is it fair to put merger field
will note from the record,
(there are indeed the acquisition, it will have the
same legal remedies
experience in hundreds of these which has a net worth of S8 mil¬ rnese
these buvino
comnanies
at
a
sp
many
areas
where
Congressional
as would be
ouyin0 companies at a seaction
may
be warranted), the available if the
transactions has been gained in lion so
that the transaction would rious
transaction were
competitive disadvantage in
great majority of mergers stem not
many capacities: as a business and entail a 60
consummated;
that
the parties
this market?
day wait, or
mergers
you

(2)

financial

consultant,

Wall

Street

acquirer (individual

corporate)

from sound business reasons:

(b)

the

same

token,

this

(1)

Estate

tax

considerations

would
up

any

precluded

defense

that

from
the

setting

transac-

tion

had

words,
not

would
If the

Number 5624

185

Volume

consummated.

The Commercial and Financial Chronicle

other

parties elect
advance notice, they
ahead at their peril.

corporate

give
move

Committee.

problem

McClellan &

believe that the points I have

raised should
all

those

be'fully explored by

affected

Bagwell Assoc.

by this legisla¬

rities business from
East North
name

with

connected

Joins F. I. Du Pont

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—John G.

Gasteiger

was

offices at 600

Street under the

firm

uel

previously with

Franklin

Havens

West

Co., 215

Riley

1200

has

Francis
J

Calif.—Marvin

become
I. \du

Street.

with Reynolds &

F. C. Cornell

Clopine 0pens

SACRAMENTO,
D.

with

connected
& Co.,
formerly

Pont
was

Co.

McCormick Co. Adds

Opens

(Special to Th4: Financial Chronicle)

JULESBURG,

Colo.—Myron

Clopine is conducting
business

from

offices

JENKS, Okla.—Francis C. Cor-

neU

securities
on

engaging

business

Star

No'.

offices

from

securities

Y^fJ^eG£as b^n YddTd tcAhe

Route

staff of McCormick and Company,

3761

•;

Sinclair

Seventh Street.

Route.

Bagwell & Associates.

Wade

and

have become associated with Sam¬

Dean Witter & Co.

KILGORE, Texas—John J. Bag¬
well, Jr., is engaging in a secu¬

Conclusion.

become

Avenue.

City

difficulty.
VII.

has

Hutton & Company, 1035 Van Ness

37 Wall Street

Form

FRESNO, Cal.—Fred. W. Willey

Burck

Consultants

New York

Two With Samuel Franklin

(Special to The Financial Chronicle)

ARTHUR A. BURCK

of unscrambling the

transaction, whatever the cost and

Joins E. F. Hutton

••

government later intervenes

successfully, the parties would face
the

tion, and by Congressman Celler's

(1459)

Wilshire Boulevard.

.V:

Reports. Its Best Year

To Date

1956, by all
Oil

principal standards,

$91,070,812,

increase of 12.8

non-recurring
profit of
c t

CRUDE

seven

REFINERY

This is exclusive of

per cent.
,

live

year as
a

total liquid hydrocarbon outper cent

2 per

processed 437,319 barrels daily,

per cent
;

SALES

principal products—gasoline, kerosene, fuel oils—were

cent in

volume, 5

per cent

TRANSPORTATION
Both

The

new

program

fields

siana and Venezuela,
western

Canada

were

fortified

found in Texas, Oklahoma, Offshore Loui¬

was

greatly strengthened.
soon

be launched with the opening of

Laboratory at the Company's research

Harvey, ill. Effects of powerful

products and

were

while the Company's position in the oil empire

Radiation and Tracer

center,

reserves

of exploration, production and acquisition.

major research project will

new

leum

quantities in the future.

Company's crude oil production and

Significant
of

VOLUME

even greater

expanded

in dollar value.

pipe line and marine systems delivered record volumes and

prepared for

rise.

increase.

Sales of

processes

Details in Annual

in:

RUNS

DOMESTIC

OIL

were set

■

consecu

Seven domestic refineries

SINCLAIR

$4,835,355*,

averaged 166,528 barrels daily,

put

date for Sinclair

PRODUCTION

OIL

Up for I he

Sinclair

year to

EARNINGS

Total

the best

Corporation and subsidiaries* New records

NET

was

gamma ray

radiation

on petro¬

will be investigated.

Report—Copy

Request

Great Name in Oil

CORPORATION

•

600 FIFTH AVENUE,

NEW YORK 20, N. Y.

The Commercial and Financial Chronicle

(1460)

actor

Some Realism

Prospects
Of Atomic Power Development
on

By HONORABLE CARL T. DURHAM*

Carolina
Atomic Energy

U. S. Congressman From North

Committee on

Chairman, Joint

In going

of the problems that must be faced in

some

over

maintaining atomic

world leadership, Joint Congres¬
(1) three to four

power

sional Atomic Committee head calls for:

long

year

meat

axe

outlines

and

program

think

deal

Energy
I

1946.

made

since

progress

Atomic
in

have

Act

first

the

was

further

ing

that

the

Act

for

progress

over

the years

has

been

that

have

had

Atomic

current

En¬
Carl

Durham

have

with

contractors

istration

the

1954

encouraged

admin-

field.

amendments

greater

private
ownership and participation, per¬
mitted greater declassification of
technical
vided

information,

the

basis

for

and

the

pro¬

interna¬

tional Atoms for Peace program.
In

this

and review

raise

and

tions

paper

somewhat

want

different

take

approach

of the hard facts

some

the

some

which

are

hard

necessary

ques¬

which

facts

questions have for

most
open

part

face

emerged

These

us.

out

the

statutory hearings which the

Joint Committee has recently con¬
cluded and other executive hear¬

ings which
In

passing

bringing
following

have held.

add

that

Committee

in addition to being
only Joint Committee with
legislative functions, has a tra¬
the

dog

being

for

the

Moreover,

the

pride

leadership

atomic

guided
In

ing

atomic

power,

our

the

field

for

it is

necessary

world prestige and

for

long-time

survival.

First,
upon

our

situation.

would

military atomic
Our

scientists

touch

♦An address
the

National

5th

with

other

seven

missile

cruiser,

field

and

Army

The

mak¬

are

demonstration

promising

being

explored.
the

field

approaches

The

Commission

aircraft

are

nuclear

also

are

making

Atomic

its

Energy

21st

Semi-

Annual

Report announced that the
first jet aircraft engine powered

atomic

eration

the

into

went

energy

GE-Idaho

op¬

site

January, 1956.

question.

pj-ugicsa

since

Defense

the

encounter our

For

en¬

Department
the

Propulsion
program

principles

constantly

1953,
again

Aircraft
the

Here
sound

management

been

Nu¬

program.

where

violated.

have
Man¬

agement has been indecisive with

authority spread out among sev¬
eral different offices and branches.
In the current
cutback,

tives,

schedules,

objec¬
target dates

have been set to
provide guidance
in the program.
Here

again, the
Joint Committee is trying to
help
get the program back

have

turning
reactor

Atrmic

Industrial

Philadelphia, March

Conference

14,-1957.

Board,

program

level.

invita¬

Commission's

such

the Vir¬
the
New
England
Power
Company,
the
Ohio Valley group, the Northern
States Power Group, the Pacific
Gas & Electric Company, the Pa¬
organizations

ginia-Carolina

cific

Power

the

Chugach

gratifying,
of

some

discuss

Light

and

group,

Cooperative,

are

particularly in view
the problems I shall

later.

sound

the

field,

civilian
can

also

remarkably
the

Eight

diversified

experimental
different

re¬

been moved from late

for

the

80%

Scale Power

indicated

hearings,
real

recent

our

into

run

construction of

large scale power reactors. At the
outset
of the hearings,
I made
observations

which

were

abundantly borne out during the
hearings and subsequently. In my
opening statement I said:
"Some of the

things which
the following:

us are

"(1)

Although

technical

lems

per¬

1959

technology, the
engineering prob¬

our

and

encountered

appear

considerably greater than antici¬
pated. This discouraging note ap¬
plies to both Government-financed
and
privately-financed
projects.
Joint

formed

Committee

last Friday

for

mates

actor

two

projects

that cost esti¬

major

power

private

one

—

Government-financed

one

in¬

was

re¬

the

have

—

$25

that

AEC

have

some

also

extended,

apparently
should be ex¬

tended.

"(2)

indicated

financial

the

incentives

for

need

reactors

should

parently

very

mediate.

Thus

before

pleted.
more

ap¬

im¬

and

Three

Wise

Men of EURATOM indicated
EURATOM

needed

that

3,000,000

that most of

noted

are

estimated

design is
possible

even

Thus

com¬

that

costs might be reduced
likely, increased.

Cites Admiral

or,

The

Rickover's

costs, in addition to
price increases, were un¬

anticipated development and en¬
gineering problems, usually in the
Rickover

things
lems in

portions.

had

important

about

recent

these

speech

"Many factors
the

Admiral

some

say

prob¬

follows:

have

been

major

sug¬

source

achieving
nuclear
Secrecy, the novel scien¬

concepts involved,

legal and

governmental restrictions
these

has

been

each

—

cited

the

major stumbling block.
"The

main

materials

and

the

size

by 1963 and

This is

goal

Detroit

1967.

lot of reactors, but AEC

and the State

point

150

Department

feasible.

any

don't

say

need

the

sample of statements during
hearings confirming these in¬
creases
in
cost 'and
completion
dates is

The

conform

the

"It

has
the

been

power

difficult

attention

features

such

itself.

nuclear

But

has

re¬

been

very

difficult to get sufficient ef¬

fort

directed

toward

conventional

plants—the

heat

the

pumps,

the

aspects

nuclear

exchangers,
the

valves,

the

instru¬

mentation. Here normal engineer¬

ing and manufacturing techniques
have
proved
to
be
inadequate
when

applied

Admiral

nuclear plants."

Rickover

something to

say

also

had

about the

man¬

agement problems involved:
"We have found that before

valves,

struments,

suitable for

produce

can

Power

components

nuclear power

A full time

plant,

project

nec¬

man¬

responsible

directly to top
must
be placed in

charge of the nuclear products. He
establish

must

engineering
petence.
that

new

This

personnel

levels

scientific

and

com¬

generally requires
be given special

education and training.
"New tools and procedures

for

stalled.

Often

plant

these

"In short, an
of

technical

are

final

very

entirely

ex¬

new

the

even

level

administrative

and

so-called

son

and

dwell

look

bad.

these

the

additional

costs

off

will

operators

power

charged

through

cost

the

cost

their

nuclear

the

capacity

same

and

Mr.

will,
by

borne

looking at these

was

facts

plants

conventional

course, have to
the power operator.

questions
Frank

that

McCune,

charge of their atomic

work,

to write to

our

program

certainly do not.
unpleasant

energy

the Committee

that their number

the

problem is

one

following:

"Of

importance is the

primary
lack

present

economic

incen¬

tive.

Normally a business begins
grow rapidly when its products

produce

increased

value

customers.

Presently

much

before

competitive in

for

its

there

atomic

power

our normal mar¬

kets;
hence our customers are
spending money on their projects
rather

than

value

receiving

from

them.

increased

believe

that

than the usual faith

to invest heavily
business' environment."

courage
a

the

know,

you

the

that

Atomic

recent

Forum

industrialists
lack

number

survey

confirmed

believe

financial

that

incentive

problem.

one

Stronger Professional Personnel

Getting

back
to
my
realism
again, I would like to make

once

further

one

all of

have

erred

gram

power

observation:

degree

one

Perhaps
another
the pro¬

treating

commercial

here

were

atomic

just ^around

the corner in this country. Actu¬
ally all of the problems are nor¬
mal
for
a
large-scale
research
and

development effort.

for

the

work

course"

It is "par
development

to sometimes miss cost esti¬

mates

by
by

100%
year

A further

and

completion

two.

question arises

grow¬

ing out of the above observation,
wit:

Are

methods

not

applying
applicable to large-scale
we

conventional

projects,

power

rather than methods

large-scale

research

attuned

de¬

and

velopment work in the atomic

en¬

field?

ergy

Thus,
and

for

example,

the

co-ops

private

power
companies
exception)
are
con¬
tracting for the development and

(with

one

construction of their reactor

plants on a "turn-key" basis to
private equipment company.

the

This

amounts

to practically com¬
delegation of technical and

plete

administrative

project
pany.

The

have

gineers

direction

the

pany

equipment

co-op or

the
com¬

private

com¬

few

supervisory en¬
management specialists

assigned to sunervhe

or bird-dog
project.
Yet in some cases,
equipment c;.mnany has never

before

that the rea¬
these problems

somewhat

power

The difference between the

plant

conventional-

you

manufac¬

among

the

is not because I want

practice

estimated

the

type equipment."
assure

the

policy

■

for

competence must be built

the

pensive.

But

and

product must be designed and in¬

group reported that "an estimate
has been made which
indicates
costs

materials

raw

proj¬
placing
equip¬

the

component
The
same

shared

complete revision of its normal

that

over-all

dates

in¬

organizational procedures is

Now I

Atomic

Some

heat

pumps,

other

loss

companies and co-ops in contract¬
ing
for
a
commercial
project.

nuclear

the
.

and

turers.

is their
not

necessary

novel

power,

actor

nuclear

...

focus

follows:

Yankee

risk

ment

demonstration

encouraged

standard

but

moral from the above."

has

the

such

ing

reactors

tributions to

ects,

and

Edison

probably going to be primarily
equipment manufacturer.
by reason of its fixed con¬

the

gen¬

exacting standards required of all

plant.

going

costs, it

AEC

conventional,

must

for the increased

pay

equipment

in 1963 and 15,000,000 by 1967. This would mean

atomic power

with

inspection must be developed and
put into use. Facilities for test¬

Incentive

components

ten

On the question of who is

it takes

problem

erally considered
which

par¬

develop¬

Vice-President of General Electric

non-nuclear

private

during the next five

prompted

given for these in¬

reasons

normal

power

years?

Perhaps it

Observations

creases

these

pay

their implications

are

ticipation in atom

hard

management

great
the

increases

actual

What

ment

costs?

the realities

rates.

this

abroad

plants had

crease.

ager

coun¬

Thomas

estimates

up.
The
10,000
kw
Electric Co-op project
"already
increased
about
25%."
AEC
representatives
in¬
dicated that the original estimate
for the Elk River Co-op had been
withdrawn
by
the
equipment
manufacturer, with an indication
in later testimony of a 30% in¬

immediate

try for reactors does not appear
good for the next 10 years, the

that

gone

Who is going

(2)
as

for

Wolverine

essary.

Although

estimates

current

had

these

the fol¬

are

Increased Costs and Financial

for small atomic power

also

(1)

increased

representatives

Commissioner

Murray

number of questions.

lowing:

com¬

"appreciably" higher than original

exchangers,

completion

The

estimates.

company

million.

original

Pennsylvania Power & Light
homogeneous reactor are

been informed
cost

the

Thursday, March 28, 1957

Of particular interest

1961.

approximately $15,000,000, which amounts to 20% to 40%
of
original estimates. We have

privately of similar
increases on other projects.

Power

increased

aqueous

and

increased

from

Westinghouse
stated

the

steady

see

Public

had

pletion date has been moved from

some, of

questions in
program
for the

and

regard to our
development and

plex

100%

estimated

power.

have

problems

two

project

tific
But

Consumers

District

facts raise

1959 to late

AEC indicated that the estimate

difficulty

Reactors

estimate

1960.

gested

Stature of Large

original

$35,000,000 by
a
substantial
margin." The completion date has

group,

the

New
power

response

the

exceed

ning to build atomic power plants.
The
responses
which have oc¬
curred
since the last session by

been

sec¬

instead

axe

en¬

some

the

participate in the power
program, or to go
their own hook in plan¬

projects

point to considerable progress. We
by Representative Durham
Energy
Conference,

out

despite steady

cutback

meat

scalpel

will

costs

Schedules

All
ircraft Nuclear Propulsion
But there

demonstration

The

progress.

Several

course.

and

tions

Package

also

operation this spring.

propulsion

the

progress

Reactors,

take

also

can

towards

under

energy

gineers at our great Los Alamos

Wolf

other

civilian

have

Sea

plant at Fort Belvoir is scheduled

the

and military reactors this is
our immediate sur¬

the

and

progress.

clear

pons

the

carrier.

the

Power

policies
and
programs
atomic energy field.

necessary for

Rick-

been

has

Currently

subs

aircraft

using

overriding problem as I
see
it, is how to maintain our
world
leadership in atomic en¬
ergy. In the field of atomic wea¬

under

Admiral

what

with

impressed

were

construction,
and plans for six additional subs,

the

Our

high

program,

operating,

tive branch to establish necessary

Need for World Leadership

four

and

private power companies,
municipal and coopera¬
power agencies have shown

tive

by the
coming weeks.

Nautilus

providing encouragement and are
sometimes the spur for the Execu¬
the

The

propulsion.
the

in¬

prototype for the complete trans¬
formation of the Navy to nuclear

program.

take real

Reactors

over.

ond

vival.

wea¬

military reactors,
we can take a
great deal of pride
in the outstanding success of the
Naval

Shippingport

and

which

consideration

for

associates

and state,

In the field of

kind of watch¬

atomic

three

that it will

say

matters, I am
the
tradition
of
the
previous Chairmen and past and
present associates on the Joint
Committee.
As you
know, our

dition

capacity

needs

our

list

let

these

Are

conventional

Joint Committee in

understanding and solution to the
problems
and

the

carrying out its activi¬
through industrial and uni¬

versity

here

years 'hence.
This is obviously a
subject which cannot be explored
publicly in its entirety.
Suffice

program,

recently

arises.

productive

stead

sion respon¬
sible for the

ties

But

Unfortunately our military
planning is apparently geared to

Commis¬

ergy

material.

pons?

civilian

supplanting

this

producing

for

producing
enough
plutonium,
taking into account the revolution
by which
nuclear weapons are

Perhaps the
greatest single
reason

stockpile.

our

plants

first question

our

have

material, U-235 and pluare
turning out record

quantities

1954.

vast

tonium,

amended

showing

some

insight into the
facing the civilian
program.
Only last

some

greatly

these

and

power

visted

From
gained

saw.

job in improv¬
designs which

weapon

was

have

problems

the

laboratories

remarkable

the

Our

since

progress

done

are

believe

couragement

Livermore

and

have made

program.

projects

week

in the naval

predecessors

I atomic

juncture."

passed

considerable

the progress of this project

its

at this

great

"time

since

plant.
The Joint
consistently fol¬

reactors

first full-scale

our

power

experience

program

recommendations

other

essence

our

It will be

lowed

with considerably
more
private and public funds, risk-taking and effort, and
recommends supporting equipment suppliers' export efforts,
opportunity by accelerating

boiling water reactor our first
regularly operating atomic power
plant.
I had the honor of pull¬
ing the lever that brought the
plant up to power last month.
We are also looking forward to
the 60,000 kw
Shippingport re¬
actor coming into operation next

and

program

and (4) financial incentive

have in the 5,Argonne
experimental
we

Committee V has

for large scale power
and provisions
for stronger management and engineering personnel. Repre¬
sentative Durham suggests meeting the nuclear challenge and
development and construction

reactors;

devel¬

Commission.

Moreover,
000

being

are

experimental reactor

the

stage

atomic

range

geared to current productive capacity;
■

the

fall.

military planning instead of present goals
(2) scalpel to replace
Aircraft Nuclear Propulsion program; (3) better

concepts

oped

built

contra

complete' reactor.

the ^EC

in. build¬

ing the Shimvorport reactor has
a
complete teelv -'c;il staff under
Admiral

sive

Rickover

field

ana

management

exten¬

and

pro-

Volume

Number 5624

185

curement

The Commercial

sold

supervisory staff work¬

subcontractors.
with

ished
than

what

the

are

nuclear propelled
realistic

facts

business¬

and

to me that it raises

seems

world leadership in
in
military and
civilian
reactor
development,
I
would recommend that we seri¬

sweep

for

We should substantially in¬

our

and

weapons

AEC

crease

Now, in summary, what do we
about
it?
Taking the broad

aircraft with a
for comple¬

date

target

tion.

(3)
Recommendations

implications

above

engineers

and

reactor

for

fund's

research and development

domestic

accelerated

that

recognition that the
primarily at a research
and development stage, and that
this costs a great deal of money.
greater
is

work

seem

for

It would
provision
waste heat for

Washington.

Hanford,

wise to also make

operating prototype power re¬
actors in this country by 1961 or

utilizing

the

and

ance

foreign

„

prestige

and

our

world

for urgency

program.
can

our

world

out

and

satisfy

obligations

producing electric power.

ANGELES,

Jones

:::

;/■'"f

J'ft/'

Calif—Robert

with

Hammill & Co., 520
Avenue.

power.

•

(Special to The Financial Chronicle)

LOS

program

will

which

session

needs

Shearson Hammill Adds

atomic energy
hopeful that we

was

Shearson,

South Grand

with

formerly

; Noble, Tulk & Co.

Birkenmayer Adds
Pasternack Admits

(Special to The Financial Chronicle)

Colo. —James C.
Marks has been added to the staff
DENVER,

Stock

the
need

our

Spring
Pacific

Co., 634 South
members of the
Exchange.

myre

tfiat

and

the

faced

and will work

this

time

Committee
have

ANGELES, Calif.—Hubert
Marache, Doffle¬

R. Weiss is with

Street,

first

the

not

Joint

Commission

market for
manufac¬

(6) We should enact the in¬
legislation
to
cover
(2) We should authorize the demnity
development and construction of a liability for reactor accidents.
Now what are the implications:
Finally, I would like to em¬
Mark
I
Flying Prototype of a
of our realism for all of us as
citizens? It seems to me that it
means
if we really want to ac¬
M
celerate our atomic energy pro¬
V;v•' V-■-k.
More Private and Public Funds

This
the

domestic equipment
turers.

where

long

too

LOS

Coast

reactor

which will
will have a variety

should

wait

(Special t« The Financial Chronicle)
-

leadership is at stake.

whether
you ously consider the following: (All
get stronger management subject to further study and con¬ 1962.
and engineering personnel in the sideration by the Joint Commit¬
(5) We must establish a foreign
private utility groups, municipal¬ tee.)
i ./- t'-j.V'"*"/ power-reactor demonstration pro^
ities
and
co-ops
to direct and
(1) We should authorize con¬ gram which will assist friendly
supervise the work of their con¬ struction of an additional pluto- nations abroad and help provide
tractors.
Moreover, there should nium
producing reactor
at research and development assist¬
question

the other hand we can't afford

With Marache Dofflemyre

demonstration program
ensure

phasize that time is of the essence
at this juncture.
I don't believe
we
need a ''crash" program. But

national

work.

inaugurate

should

(4)- We

the

establ¬

package

abroad.

taking more
complete the

is
to

years

some

men?

order

here

even

project.

Now

you

design,
four

reactor

Yet

adaptation

including fuel
reprocessing in
to compete with our friends

fabrication

ing with the prime contractor and

(1461) '21

and Financial Chronicle

Birkenmayer

Building.

Club

Denver

Co.,

was

formerly

with Colorado Investment Co.

David H. Cohen became a part¬
ner

in Pasternack &

Co., 25 Broad

{Street, New York City members
of the American

Stock Exchange.

JK;,

under present conditions, it
considerably more pri¬

gram

will

take

vate

and

funds,

Government

effort by every¬
concerned.
It
particularly

risk-taking, and
one

of many more

people in nuclear work.
That brings me to the question
of whether it is worth it. I think

the training

means

is,

worth

ship.

For

leader¬

world

leadership

atomic

our

become

has

its

measuring

are
terms of
we

part of our foreign

policy, whether we like it or not.
At the present time our present
leadership
is
being
seriously
challenged. The British only last
week announced that their already

i
W:

i
%

had
been
This
includes ap¬
20
power
stations
involving 30 to 40 reactors for a

scale
quadrupled.
proximately
large

total

program

capital

begin coming

$2 V-»
reactors will

the line in I960.

six

the

indicated,

have

cost

These power

billion.

million

estimated

EURATO M

fii: i

has plans for three million
kw by 1962 and 15 million by 1.967.
Japan is also interested in de¬
veloping atomic power rapidly.
Although the Russians are un¬
doubtedly behind us in technology,
they have an ambitious program,

PP
P 'M

nation

European

group

both

terms

concepts

actor

variety

total

and

Garden

plants and kilowatts produced.
According to the statement of the
Kurchatov, and other Soviet an¬
nouncements, the Russians expect
to have between 2 million kilo¬
watts
and 2 and a half million
kilowatts

able

In
&

last

Committee

Joint

The

based

that,

year

reported

Soviet

other

achievements

and
there

the

Rus¬

their

goal

believe

reason

sians

development,

energy

achieve

cannot

Then there

who

The

looking to

are

challenge
The

there.
it?

meet

can't

year

One

and, in
that

afford

lies

opportunity

and

is,

question

the

a sense,

can

can.

wait

But

another

try

get

area

covered

operated

our

recent hear¬

experience

some

bv
/

serves

are

atomic

until

economic

many

solved

$1.91

$1.71

$1.00

Amount of Loans Made

$739,041,925

$632,491,082

Number of Loans Made

1,857,772

1,783,979

$442,283,634

$384,902,281

1,023

978

Net Income per

Cash Dividends

power

here.

fami-^

per

Instalment Notes Receivable
—

amounts

they require and on re¬

payment

terms

especially devised

in thousands of

constructive

people living

(after deducting
Discount)
"

year-end

Number of Offices-at year-end
.The--information contained
financial statements and
Stockholders.

that

appearing in the 1956 Annual Report to
Will Re Furnished upon Request.

A Go.i'V or inr. Report

—

and
,

BENEFICIAL loan is for a

§11?

beneficial purpose.

becomes
there

But

practically
need
a
far

were

herein should be read in conjunction with the

notes

communities.

uiance

national development.

unanimous

paid

Common Share

complex problems to be
encouraging this inter¬

Witnesses

Common Share

and

making loans in the small

make some money in foreign mar¬
kets

principally

service is rendered to

was

$ 16,807,373

in number of families

for them. In this way, a

challenging

most

that this urgent need for
atomic power in foreign countries
offers a great opportunity for our
domestic atomic equipment indus¬
ings

$ 18,685,686

Net Income

Unearned

encouraging things

out of

came

Finance System's

earnings.

Beneficial

nations

two.

net

for help.

believe

l!l .*».*>

the Latin Ameri¬

are

under-developed

and

can

number of of I ices

provided they give it top priority.

finance field.

42-year history, 1959 was the best

served

i or»<;

II 14,11 LIGHTS

,000-ofljce organi¬

consumer

the Beneficial

year ever

aspects

in other technological fields,

atomic

zation in the

capacity coming into opera¬

tion in late 1958.

(California early in

became the first 1

1960, with consider¬

opening of an office in

Grove,

1956, the Beneficial Finance System

Ivan

Dr.

spokesman,

the

With

re¬

number

Soviet

Beneficial Building,

aggressive program to back
our
equipment suppliers in

Wilmington, Del.

their

efforts
to

abroad.
cut,

Red

and

projects need to be considered and

tape

reactor

THAN

1,000

OFFICES IN THE UNITED

ALASKA

STATES, CANADA, HAWAII AND

:J'k

•

;

&: %
:W m

heeds

| |

;

;;

|: I

gi: gfc

Pi
&

•

Tiie Commercial and Financial Chronicle

(1462)

Thursday. March 28, 1957

$10 Million Issue of

Bank and Insurance Stocks

Our

Reporter

By ARTHUR B. WALLACE

Week

This

—

has

been

in ine

that write relatively few and profitable
those that are adjuncts to finance and other companies
torily,
need

tnose

able

alt

almost

carriers,

multiple-line

the

fire and

both

service, have estimated that the industry was

1956,

their

sidiary

stuck

Loss A:

American Surety __y

Banks & Shippers—
Boston

98.4%
94.4

102.0%

$472,000

97.4

304,000

108.6

•—2,513,000

Fire

99.3

101.2

259,000

Federal

Ins.

—

Ins.

Firemen's

(Newark)

Hanover

Fire

Hartford

Fire

______

Ins.

Ins. Co. No. Amer.__

Maryland

Bond.

Hampshire

99.7

108.2

'151,000

96.2

4,988.000

99.2

102.4

1,382,000

99.1

104.5

106,000

93.9

100.6

98.7

,106.3

8,612,000
73,000

96.3

98.0

430,000

100.7

4,478,000

96.3

98.2

102.7

105.9

—

98.0

102.7

123,000

94.4

97.4

347,000

Providence Wash.

98.9

107.0

816,000

Kiver

„_

204,000

102.9

43,000

98.3

5,653,000

98.7

103.8

351,000

95.1

103.4

2,231,000

Fidelity & Deposit-82.5
Fidelity Phenix —95.4

86.5
105.7

2.204,000

100.2

105.1

Fid.

Fire

96.6

99.4

98.6

102.9

Westchester-;

98.3

Aetna

95.9

Gty.__„

Casualty

Aetna Insur.

—

Continental Ins.

Fire

___-

Ass'n

Great

—

99.6

103.2

100.5

108.2

94.0

95.5

102.7

107.1

102.0

108.9

American

Nat. Union Fire

Northern
Phoenix

Ins.

______

Ins.

t__

Springfield Fire
Amef. Automobile
Continental

Cas.

Fireman's Fund

95.8

Amer. Ins, (Newark)

102.5

___

____

Glens Falls
National

Fire

___

——

325,000

437,000

—

740,000

108.8

958,000

104.9

—1,464,000

92.2

94.9

97.5

108.3

980,000

98.4

103.1

725,000

100.9

114.5

—1,726,000

9.9.2

108.8

128,000

Stand. Accident

97.7

102.1

706,000

____

same

Christiana

16t/2%)

matter of

ments.

Securities Co.
New

Bulletin

Available

months

Unless

these

sory

authorities,
units

Exchange

Members

Exchange

American

BROADWAY,

Telephone:
Bell

Stock

NEW

fact

Specialists

Bank

Stocks

the

notes"

due

77. 77- 7-.7'

the

;

5s,

net

to Puerto

other groups competed

issue,

snncifving

account

Chase

headed

Manhattan
interest

net

Bank

cost

3.753%.
The

bonds

reoffered

were

prices scaled to yield from 2.60%
to

3.70%, according to maturity.
Participating in the offering are
Chemical
Corn
Exchange Bank;
Lehman Brothers; C. J. Devine &
Co.; B. J. Van Ingen & Co.; Harri-

Ripley

man

Inc.;

Co.

Smith,

Barney & Co.; Kuhn, Loeb & Co.;
Merrill Lynch, Pierce, Fenner &
Beane:

Banco

Rico;

Lee

Allyn

Popular

Higginson

worth

Co.

Inc.;

and

Inc.

Mercantile Trust Co.,
F. S. Smithers &

Puerto

Corp.;

Co.

and

St. Louis:

Co.; Braun, Bos-

Inc.; C. F. Childs &

announce¬

raising venture of the Treas¬

that

of Decline

the

commercial

market

money

Rank

Andrews

Wells,

Inc.:

Kean,

Taylor & Co.; F. Brittain
Kennedy & Co.; Lyons & Shal'to
Inc.; Stifel, Nicolaus & Co. Inc.;,
The

First

Cleveland

Lakeside

Janney,

Corp.;

Mayer;

Dulles

Indianapolis

Park,

Sea-

Ryan,

Securities

Corp.:

Inc.:

Battles.

Bond

and

banks

obtained

were

specialists

that

not

were

the

recent

large

sellers

new

money

make clear to

seems

the

Credit

demand

for

bank

Also,

5,338,000

have

been

that

1,062,006

the

stepped

5,470,000

gation.

2,846,000

sizable

very

buyers of Treasury bills. Pension funds,
ones,
according to advice#,' have likewise

private
tneir

commitments in

the

shortest

Join Allen Inv. Co.
(Special tc The Financial Chronicle)

cer¬

funds

been at times in the past.

2,022,000

1,129,000

obli¬

government

D E N V E R.

Bauer,

Eld

Henry

Angelo

Marshall

the

1,770,000

hoped that the $3

Treasury

3,419,000

funds,

offerings

billion

which

was

j.ijst borrowed by

carry them through the current fiscal
year
However, if there should be need for additional

the opinion - of Treasury officials that the weekly
91-day bills will be increased, as has been true in
the past. With the cash needs of the Treasury taken care of, for
a
time at least, it appears as though the measures which will be
undertaken to provide tor tne F and G maturities are the impor¬

3,097,000
3,889,000

4,109,000
8,454,000

tant unknowns

6,653,000

"far

the bond market

Cys,

and

Duane

with

Allen

Mile

Company,

Brummett,

Jack

now

A.
In¬

High

Center.

Form First United
BROOKLYN,

"G" Issues?

will

ending June 30.

Cross,
Fiocca

Walter

—

Corp.

'■

3%% 25-Year Bond for "F" and
is

Colo.

won

are

vestment

United
It

3,773,000

with

Corp.
offices

Avenue
business.

N.
has

and

—
-"V'-'"
'!

1000

are

Thomas

President,

been

engage

Officers

President;

•

First

formed
Flatbush

securities

Harold Daly,

Green,

I. Daly,

Vice-

Secre¬

tary and Treasurer.

is concerned.

To be sure, this will
be an exchange offer, but it is the
marketable feature that has the bond market interested.
It is the
contention of some money market specialists that a marketable
Treasury issue in order to be well received, even in an exchange
offer, must meet the competition of corporate and tax free bonds.

9,656,000
1,501,000

This would indicate

2,396,000

are

state

some

could

Henry

with J. D.

following

the
'

coming into the near-term govern¬
market, according to reports, is still on the increase. There
are
also evidences that corporations, in spite of the demand for
funds that came with the payment of the March 15 income taxes,

coupon

issue.

•_.....

A
On

the

the F

with

of 3 ¥2%.
real

...

for

25-year

U. S. GOVERNMENT

...

hold

side

the

fence

those

are

and

market

money

fol¬

the

opinion that the Treasury in taking care of
put out a real long-term bond,
maturity to run to either 1,987 or 1990 and a coupon rate

and
a

rate of at least 3%%

Specialists in

Longer 3V*% Bond Also Suggested

other

lowers who

savings bond should

It is pointed out that such

whereas those

savers,

that

issue would appeal to the

did

not

the

exchange

Federal agency
Securities

offer

could

get cash and reinvest the proceeds in higher interest bear¬
ing corporate or tax-free bonds. The government could sell shortterm

find

ordered

supervi¬
the1 less
the

obligations to get the

make

the

money

pay

off those that did not

exchange.

go¬

Three With Carroll

Chicago Analysts Hear
'

CHICAGO,

111.

—

(Special to The Financial Chronicle)

McCol-

DENVER,

lum, President of the Continental
Oil

Company,

will

address

the

luncheon

meeting of the Invest¬
Analysts Society of Chicago

ment

WHITTIER, Calif.—Kenneth
and

for

are

ment

March 28 at the Adams

the

F." Figge

Carroll

Co.,

Denver

Club

Adds

(Special

been

Securities

Building.

added

Inc.,

the

Farmer's

staff

Co.

IIKOAD

DENVER.
of

Union

Brafford

Colo.

and

YORK

-JamesW.

Rodney

Linn

have become connected with Wal¬
ter

STREET

'vo The Financial Chronicle)
NEW

■DENVER, Colo.—Frank J. Cook
has

Aubrey G. Lanston

Building.

INCORPORATED

(Special tc The Financial Chronicle)

L.
are

Harold

—

Walter Plankinton Adds

Creger & Co., 13412

East Whittier Boulevard.

Colo.

Ballard. Donald R. Lee and Larry
D. Preston have joined the staff

Midland Hotel.

Securities Inc.

(Special to The Financial Chronicle)

Clark

made

were

available lor investment in bonds, and

money

140,000

Room

now
in

market

money

1-1248-49

billion

,77-v

money
new

issues which

new

to be held

Manager Trading Dept.;

concerned, these commitments will prob¬
be confined mainly to the short-term liquid issues.

Two With Creger & Co.

BArcJay 7-3500

Teletype—NY

(L, A. Gibbs,

YORK

the

7/7

874,000

Laird, Bissell & Meeds
120

favorable

amount

subscriptions above the $100,subscriptions were roughly $7

that

is not quite as pressing as it has
the money which has been

ing rough, indeed.

Members New York Stock

the

bond

3 Mi %
due May 15, 1960, was
$750,000,000, and in this instance

maturity and
;7 %%

governments

tain

1,678,000

1956.

the

bid

it clearly becomes

effect

the

basis for

reported

1958

the

of $100,000

excess

raising operation of the government

for

ing amounts of

upward rate readjust¬

into

fortified
Our

two

offered

were

2,902,000

we relate statutory. loss figures
(policyholder's surplus). This ratio of losses to
capital funds runs as high as 20%; and, obviously, some of the
smaller companies cannot continue this state of affairs for many
years, even though investment income constitutes a big off-set.
And, of course, if we go into a bear market on the general security
list, matters will become even more painful.
So, with losses continuing heavy in the early months of 1957
(January and February fire losses were nearly $30 million above

about

evidence

The

extent

12%

was

action

The

funds

the

interest cost of 3.7283%
Rico. Two

Inc.;

management is brought out when

capital

the

Now, the seriousness of the condition that confronts insurance
to

1958

of the

Security Ins.

14,

2,701,000

combination

Corp; and Prescott & Co.

7,116,000
- -12,905,000
3,328,000
-

10,586,000
—

been

for

3.736%, while J. P. Morgan & Co.
associates bid on a net cost

offered

were

basis.

the

Evidence

659,000

—1,161,000
—

1977,

and

2,457,000

12,000

1958 to

submitted

group

songood

2,598,000

556,000

has

all phases of it, had

Feb.

ably

854,000

1,661,000
—

for

The

that money and credit conditions are going to
shot. It does, however, indicate that there is
far

2,841,000

3,072,000

U.
U.

1,983,000

poli¬

be easy by a long
likely to be increas¬

550,000

534,000

in these

ease

indicates that the extreme tightness which has been so much
in evidence for a long period of time has
given some ground.
•The change so far has been very minor and this does not mean

-14,746,000
-

Pacific Fire

North

1,564,000
-

definite

ury

440,000

1,465,000
—

were

1960.
The

830,000
-

due

allotment

figure.

ment

123,000

which

available to

billion

3,655,000

07.7

93.4

Cas.

Massachusetts

—

31%

000

$1,341,000
-

3%%

allotments

i »5<;

106.5

Commercial

New

I 'liVi

Insur.

Camden

Home

made

Statutory Results
1955

I J/55

government

Offerings Very Well Received

tone

securities

The

Results

Statutory

July

due

100.0331

better

$2,250,000,000 and subscriptions in

Exp. initios

near-term

tavorable effect
by the Treasury for new
money raising purposes. To be sure, there was the further attrac¬
tion of having these obligations
payable through the tax and loan
account of the commercial banks, and this was
responsible for
more than a
wee
bit of the very sizable
oversubscription which
was received by the
government for these issues.

Combined Loss and Expense Ratios and

investment

Although the monetary authorities say the credit policies at
moment are "passive," there ere not a few money market

the

profit of over $2,000,000.

for

market, and this applies

that their losses were small.

having

appearing

Recent

Mostly, this was
casualty lines of writings. The
casualty companies that took on sizable lines of fire and allied
writings pretty generally turned in poor showings.
A good example by way of comparison between a straight fire
company and a casualty under the same management is Hartford
Fire and its affiliate, Hartford Accident & Indemnity. The parent
registered a statutory loss of labout $1,500,000; the Accident sub¬
to

Bonds,

demand.

3\'zs, and 3.70s, representing

The

with 1955, of a number of leading fire and casualty com¬
panies, together with their statutory results for the two years.
It will be noted that some of the casualty units did not go into
red

;7; ' Z ■■■!■'

pared

the

much

very

$10,000,000 Commonwealth of
D^u^r,*° ^lcoT Gene1a-hihgaticm

which

observers who believe there will be
cies in .the near future.

pany's showing in the underwriting portion of the business, for,
after all, underwriting operations are the primary function of an
insurance company; investment activities are secondary.
_
There follows the 1956 combined loss and expense ratios, com¬

due

still

inclusive.

minus, give us a measure of a com¬

issues

favorable reception for the 3%% and 3lk% new
money
issues was due in part to the better
feeling which is appearing
towards the bond market,, along with the larger amount of

the

thrown for a statu¬

million, and that the combined loss and
the highest since 1922.

ratio was
Statutory results, plus

short-term

securities.

tory loss in 1956 of $150
expense

the

money

in statutory losses, some of them of serious
proportions. And the unfortunate part of it is that 1957 bids lair
to be another bad year if the first few months' indications mean
much.
Alfred M. Best Company, a leading insurance statistical
turned

casualty,

with

National City Bank

New York is ^manager of an
underwriting syndicate which was
011
28 an issue

will

The

insurance subsidiary.

But

lines, or
that have

.T*16

raising
trying jkT

money

be used in the exchange offer which is
expected to be made to
owners of the F and G savings bonds. In spite of these problems
the market action of Treasury securities has not been unfavor-

data that are now beginning to appear. As
observed here, many specialty units made out satisfac¬

brought out

Obligation Bonds Sold

digesting the recent

operation of the Treasury and, at the same time, it is
figure out the coupon rate and maturity of the bond which

for the

companies,

companies, and for many of the casualty

fire insurance
is

The government market is

loss situation in 1958

The seriousness of the statutory

Puerto Rico General

By JOHN T. CHIPPENDALE, JR.

Stocks

Insurance

Governments

Plankinton,
Broadway.

1637

South

CHICAGO'

BOSTON

Volume

Number 5624

185

■

"
6

Continued

from

The Commercial and Financial Chronicle

page

(1463)

experiment for

added

The

ing such
vide

ital.

would-be

promise

borrowers.

day

The Federal Reserve could have

done

this

could

and

the

Federal

need

did

Reserve

are

saving

their

credit

carry

expand

comparatively

counts

ings of U. S. Government bonds
by $20 million during 1956, and
by selling almost $2 billion of

and the banks urge
in these categories.

government bonds in January and

to discuss the outlook for

February of this

in the availability of

loans and

the

reduction in
decline in

seasonal

in circulation. The pol¬
icy of the Board of Governors of
the Federal Reserve System has

reminded

nant told at the

even

1957

1958.

During

the first three-quarters of last
year
there was a continuous decline in

corporate
dustries

pleted
have

for

nothing

net

profits.

find

plant

that

outrun

immediate

products.

possible

that

the

just

first

that, I would anticipate

half

the

demand

this

year

and

credit

will

continue

University earlier

higher

strong
Bank

throughout

that

for

30 than today

bit less

of this

the

and

year

latter

early next

business activity may de¬

cline

slightly

ernmental

though gov¬
expenditures increase
even

currency

been,

and

policy.

is,

today

even

Any contrary

action, any
artificial easing of credit would
have
enabled
(and,
in
effect,
caused)
loans,

the banks to make more
which
means
that there

would

have

borrowers
tions

1956...

would-be

would

That

formed with offices in the Mining

Exchange Building,

to engage in
Officers are

securities business.

Wendel E.

Lowry, President; E.G.
Johnson, Vice-President; M. T.
Secretary-Treasurer, and
Alvin J. Johnson.
son

and W. E.

Alvin J. John¬

Lowry

are

in Al. J. Johnson & Co.

1955 total

tons

000

record year

net

t|he

tons,

all-time high of

ingots—compared

of 5,099,905 tons.

CAPACITY

Armco increased

Money is tight for the relatively
simple reason that we have all
wanted more things than we could
afford
and despite the fact we
couldn't afford them, we bought
them anyway.
As a consequence,
we
have
spent
more
than we

its steel

capacity by 800,-'

about

15%

by the end

1956.

year

SALES
Armco's sales for 1956 totaled

for Armco

saved, have borrowed all that was
available and are now clamoring

COLORADO SPRINGS, Colo.—
Johnson, Lowry & Co. has been,

only

inflation.

our

Johnson, Lowry Formed

produced

net

PRODUCTION

limited volume of labor

have accelerated

for

with the

states)

materials.

and

In 1956 Armco

5,220,147

(consumers,
corpora¬
bidding up the

and

price of

been

This

was a

10% increase

over

$761,800,102.
the 1955 total

of $692,683,234.

more.

How

Long Will Credit Remain

EARNINGS

Tight?
Will

credit

ease?

Yes,

credit

will ease,

just as it will stop rain¬
ing, sometime.
When?

in front

good

leaves,

child

when

plentiful

1.956 net earnings of $65,593,182

$2,979,371

(including
come)

were

the

of extraordinary in¬

highest in the Company's

56-year history.

company

become

Armco's

who is bad

the

will

around the world

but becomes

company

soon

credit

less

de¬

mand.
In

attempting

to look

it is important to give
backward

for

dent

that

note

while

some

inci¬

pres¬

indications

some

are

that the present inflation i^ reach¬

ing its later stages.
loans

months
than

the

The increase

1956

the

last

increase

less

Net Sales

commercial

months

two

declined

trict)

re¬

gained.
of

purely

the

decline

recent

The

seasonal.

stores that
Christ¬

borrowed in order to carry

inventories
their

for

have

been

paid

customers

row

Christmas

for

their

than

repay¬

and P'ebruary.

uary

the

deal

less

during the months of Jan¬
Nevertheless,
during January was

ments

decline

precipitous

and

than

February did not

comparable

gain

....

Ingot Capacity Operated

1956

1955

$761,800,102

$692,683,234

.......

5,220,147

5,099,905

Shipped

Per Cent Net

Earnings of Net Sales

Per Share of Common Stock

Cash Dividends

Common Stock

Total Payroll

.,'y.

♦

..........

....

......

Employees (end of year)

•.

•

.......

Average Payroll Per Employee "

last

the

manufacturers,
size

$6.03

$6.05

...

$27,709,798

$20,625,713

that

last

for 23

that

have

in¬

successive months,

have cut back production in order
to

$1,95* '

$2.55

...

$43,724,896

$37,883,384

$66,092,494

$35,368,262

$196,616,362

$178,012,107

...

32,358

31,504

...

$6,042

Total Taxes

$5,759

Per Share of Common Stock

$73,377,846

$76,012,148

$6.75

$7.15

Long Term Debt—less current portion (end of year)

Working Capital

Ratio of Current Assets to Currr nt Liabilities
Common Shares Outstanding

(Ful

Shares)

...

$51,330,000

$57,329,355

...

$191,325,287

$182,802,349

Book Value Per Share of Common Stock

Common Shareholders (end of year)
Total Assets

"balance" inventories.

*Dividend

2.64

2.72

10,878,752

10,633,021

$39.43

$36.36

53,770

50,275

$612,828,489

$563,097,135

$18,939

$17,874

...

per

share for 1955 after giving effect to 2 for 1 common

If you

would like

complete 1956 Annual

our

Report,

fact that some
disturbed by the

inventories

creased

9.29%

...

year,

produce

This greater decline mav be due

part

$64,350,609

$65,593,182

8.61%

year.

4,003,532f

3,936,105f

.......

...........

Per Share of Common Stock

Earnings Retained in the Business.

103.0%

94.1%

...

who invariably bor¬

great

borrow

....

goods and have reduced

,their loans. There has been a sea¬
sonal decline in consumer credit
as

Produced

Capital Expenditures

Much

......

Net Earnings

in this dis¬

$200 million,

some

•

Net Tons of Manufactured Products

in¬

and

$100 million of which has been

mas

1956 ANNUAL REPORT

STEEL CORPORATION'S

ARMCO

the

(as indicated in the

of leading banks

case

Per Cent of Rated

esting to note that during the past
dustrial loans

...

Net Tons of Ingots

also inter¬

It is

1955.

six

really

was

seasonal

half of

last

in¬

the

inflationary

great

There

sures.

•

HIGHLIGHTS

glance

in bank loans has been go¬

crease

ing

and

forward,

one

just write

free

copy

the

address below.

stock split in second quarter.

f Includes products manufactured from ingots of other suppliers.
Mote:

All above

figures exclude foreign subsidiaries except Canadian.

Nevertheless, credit is still tight.
Indeed the average rate which the
banks

were

United

willing

pay

cently

was

point.

Most banks look with dis¬

favor

ARMCO STEEL CORPORATION

Treasury Bills re¬
3.24%, close to a high

States

MIDDLETOWN. OHIO

requests for loans to pur¬

chase equities

to redeem cap¬

SHEFFIELD

STEEL

DIVISION

•

ARMCO DRAINAGE 6c

bonds

early in 1958.

PRODUCTION

wise

government

Lowry,

year.

loans may well be

June

little

part

buy

Thus, the
for credit
may
decline
the supply increase late this

year or

com¬

demand

in¬

few

already

expansion programs

that business will be good through

that

begin

and make it possible for the banks
loan more funds.

and

these factors may
cause-corporate
planners and consumers to spend

period.

Dr.

would

in¬

some

purchasing

occurs, but in anticipation thereof,
the Federal Reserve Board
may

late

him:

make

There is

lower

consumers'

remains high. Even before
any such business decline
actually
power

are

changes

credit, but I

story

and

Co-

advised

and

forced

were

than

that

dis¬

was

the

and

appropriations
that plant construction
may decline

man,

guess,

ac¬

reduction
.

inventories

The program states

thereby off¬

year

setting the seasonal

receivable

and

dication

throughout the rest
of your life be a historian rather
than a prophet."

large

the contrary and reduced its hold¬

laughed

Conant

"Young

for

production

class

Dr.

good local growing customers who

to¬

day, but it didn't and it shouldn't.
Indeed

being permanent de¬
positor customers. Most banks to¬

the

to loan to

money

are

price increases.

missed. An older professor sitting
in the back of the room came up

not interested in
borrowers unless they give

new

loss) and thereby pro¬

They

•

may decrease a bit. There is some
evidence of consumer resistance to

already in the bowl, there would
be an explosion.
He added the
material and nothing happened.

And the Near Credit Outlook
(without tak¬

certain material to others

year-end

or at any prior
y''
However, in the second half of
this
year
the upward pressure

date.

his class, anliouncmg in advance that when he

Development of Tight Money

the

a young

chemistry professor he performed
an

banks to sell them

He said that as

this week.

METAL PRODUCTS. INC.

•

THE ARMpO INTERNATIONAL CORPORATION

partners

The Commercial and Financial Chronicle

(1464)

the

President,

Chicago

appointed

was

22.

President.
%

News About Banks
NEW

BRANCHES

NEW

OFFICERS,

Isle,

Presque

CONSOLIDATIONS

000

Bankers

and

ETC.

REVISED

CAPITALIZATIONS

First

National

has

York

Warren

City

Shaw

Bank

promoted

Leo

and

the

board

bank's

retirement of

Senior Vice-Presidents. Mr.

War-

The

has
to

the

into

the
21-story
building
by The First National City

quarters
Bank

New

York

Ball, President.
take

announced

was

Wall

possession

some

time

move

from

its

addition

In
floors

Wall

four

storage

and

has

charge

Vice-President

been

the

Department,

Bank's

Executive

been

machinery,

other

Shaw

has

Vice-President

and Manager Overseas Division.

Direct supervision of the Over¬
Division

seas

will

be assumed

George S. Moore, Executive VicePresident. Mr.

Moore has been

charge

which

handles

counts

the

all

domestic

bank

the

Division

Domestic

ac¬

those

except

of the New York

City branch of¬
fices.
Frank
T.
Mitchell, VicePresident, was promoted to Man¬
ager Overseas Division and
be directly
associated with

will
Mr.

Moore.
J.

Laeri, Executive
Vice-President, who has been in
charge of the Bank's 74 offices in
Greater
New
York,
will
take
charge of" the Domestic Division.
ft

St.

brating
New

York announced
Lester Grieb,
be in charge

Company,

New

March 25 that

Vice-President, will
of the new Irving

office scheduled to open this

sum¬

mer

at Park Avenue and 54th

Mr.

Grieb

has

experience in
Now

St.

office at 400 Park Avenue will be

Irving's

11th

complete

layout,

business
area

this office

and

will

individuals

own

St.

1,
moving

1859,
to 32

Wall

St.

where

administrative
and

State

member

Bank

York,

March

and

Mr.

Trust

Jacob

ciated

with
Co.

Co.

The

York

for

Director

banking

executive,

assistant

active in

the

bank,

1912

with

National

Y.,

the

who

President

the management

started
the

his

Union

Bankers

value

par

the

Director

Company,
nounced

Chairman

Curtiss-Wright
been

elected

Manufacturers

New

York

Horace

the

Trust

was

an¬

Flanigan,

board

the

bank.
Mr.

fills

vacancy

Executive

Vice-President

and

Harris

Vice-Chairmdn

the

National

Ohio.

Jr., E. L. Carpenter, A.

Knight

Jr.

have

Hill¬

new

30,

the

Bank,

is
has.

Clifton

Rich¬

Salisbury, who is
Secretary of the bank,

the

officer

charge.

and

Bank

capital

stock

for

100,000

the

rate

A group

First

Al¬

1957.
is

$33

made:

held

of-

The

subscrip¬

headed jointly by The

Inc;,

Bond

and

Indianapolis
Corporation will

formerly

President,

was appointed Honor¬
Chairman of the Board.

Harrington,

Vice-President

and

when

rights

expire

Indianapolis time

3:30

p.m.

April 8, 1957.

Proceeds from the sale will

en¬

large the capital base of the bank

services,
activity.
increased

expansion of its

particularly
Total
from

1954

loans

its

tucky

the

$64,877,000 at the

$110,125,000 at the
•

Marcus

Aurelius,

St.

its

and

use

for

advances

sub¬

for

the purchase of stock

offered

for

subscription

compa¬

and

area

additions

debentures

new

March

and

31,

1959,

and including March

decreasing

will

107.214%

prices

thereafter at

the

principal

amount after March 31,

consolidated

tele¬

own

plant.

106.714%

1980.
of

statement

American Telephone and its prin¬

cipal

St.

telephone

1956

joined the Auditing Depart¬

such

improvements to its

including

1938.

for extensions,

for
operating rev¬
$5,825,298,000 compared

shows
of

enues

subsidiaries

total

ment of the St. Louis Union Bank

with

income for 1956 before interest

tion

and,

when

with

merged
the

First

others

Bank

transferred

two

National
was

institu¬

that

became

deductions

ent

bank

assigned

department

and

was

the

Illinois, Indiana
and Kentucky territory.
He was
placed in charge of this three
in

area

Bank

The

ST.

Frost

Ga.,

from

6253

Co.,

dividend

Richter

North

the Midwest

from

$1,500,-

of
13

(165,000 shares, par value $10).

Stock

320

members of

Exchange.

Schreiber, Dail & Co.
(Special to Tiil Financial Chronicle)

LOUIS," Mo.—F. G. William

ST.

Moeller

has

Bank

increased

its

capital stock from $100,$200,000 by a stock divi¬
effective March 12 (20,000

become

Dail

Schreiber.

with

associated
&

Co.,

315

North Seventh Street. Mr. Moeller
was

formerlv

the

First

National

Ala.,

with

Company,

Street,

Fourth

William J.

—

connected

now

Scherck,

increased

$1,650,000 by the sale
stock,
effective
March

Fort

First

F. G. W. Moeller Joins

was

and

Mo.

LOUIS,

Fla.,

Richter

value $10).

par

$1,200,000 to $1,500,000 by

Sylacauga,

Hollywood Boulevard.

First

$9,000,000
effective
March

Lauderdale,

The

Bennett

with

now

com¬

Atlanta,

Broward National Bank

hew

Leland

(Special to The Financial Chronicle)

1,000,000 shares,

000

—

R. Smith and Carl G. Sohmer are

With Scherck,

dividend, the

increased

stock

com¬

(Special to The Financial Chronicle)

stock

$10,000,000,

$922,395,000

HOLLYWOOD, Calif.

McElroy.
«

stock

was

interest

other

1944, succeeding the

Palmer

capital

mon

and

Bennett Adds to Staff

Assistant

debt

Total

pared with $814,883,000 in 1955.

Department.

1938

$5,297,043,000 in 1955.

funded

Vice-President in the correspond¬

associated

Vice-President of

National

with

Louis

which

for

Bank
he

had

St.

been

almost 40 years.

common

000

dend,

shares,

par

value $10).
«

The

Bank

Francisco,
a

special

bank's

fective
will

California,

Calif.,
the

2-for-l

common

San

shareholders

meeting

April

With A. C. Allyn
(Special to The Financial Chronicle)

Wis.

MADISON,

March

split

of the

capital stock, ef¬

The new shares
be issued shortly thereafter.

The

split, originally proposed at
January annual meeting, re¬
duces the par value of the stock

the

retired

years.

proposes

proceeds from the sale of the

1917

straight de¬

maturing in 34

31,4960, and

three state

quarter

Telephone sale was
1956 involving 3%%

redeemable

National, he is joining Schreiber,
Dail & Company, Investment Se¬
curities, and will represent them
the

third
sale

company

The

predeces¬

years.

since

on its bid of
indicated cou¬

last

nies and

the

Illinois, Indiana and Ken¬

approved

current

under

Upon his retirement from First

bank

capital, giving effect
offering, will con¬
sist of 500,000 shares of capital
stock, $10 par value.
to

retire

Mr. Moeller has represented his

lending

of the

1956.

formerly

Assistant

bank in

purchase any unsubscribed shares

The bank's

McDonald,

will

National
for

from

share.

per

Vice-Presi¬
Bank

for

record

Company,

were

new

interest

sidiary and associated companies,

Moeller,

one

the

As¬

Securities

First

subscribe
shares

Corporation,
City
Corporation, Collett &

end

title

Boston

end

par

rights

20,

price

$10

additional

four

March

its

de¬

American Telephone
three years.
The

the

The

and

National

Straub,

the

dollar

debentures

territories,

April 1, 1957,
having been associated with

was

holders

accrued

the

for

debentures
if

offered
value

4%%

debentures, which
1985, are priced

yesterday

July

phone

late

March 21,

National

Mo.,

apolis, Ind.,

lowing

changes

Louis

First

Telephone

and

recent

bank's pension plan

Lynch

National

most

after

Senior

Fletcher

sale

This

Cashier.

Louis,

elected

State

William

dent,

state

been

The

bentures

in Arkansas after

❖

Frederick

to sustain further

meeting of the Board of
of

Bank and Trust Company, Indian¬

bany, Albany, New York, the fol¬

ary

Central

Cleveland,

of. each
par

building

Savings

Frederick

April
sistant

Vice-Presidents..

$10

same

March

ij!

Hollis

Hurley

for

Directors

yesterday

issue of $250,-

28-year

April

100.5399%

Louis.

common

due

101.214%

tive

Ray¬
Vice-Presi¬

Texas

and

Credit

the

assigned

be assisted

the

within

will

Killpack has been elected

Swancutt,

Louis,

Caldwell

the

its

Co.

bentures.
are

sale

new

American

Telegraph

Harry L. Smith, Vice-President
charge of the bank's Arkansas,

Louisiana

Middle-

from

000,000

dent.

St.

Bank

Hill, N. Y.

will

has

office

President

Assistant

from

tion

announced

with

:*i

Bank

value $10),

par

Board

Trust.

consisting

opening of its

Arthur

and

public

billion

will

mond

sors

President

for

(March 27)

pon.

stock

fered

Kentucky,
territory. In

Effective
April
1,
Tennessee,
Mississippi, Georgia, Alabama and

shares,

consisting of 44,625

Avenue

mond

Bank.

American

$573,750,

Hill

Na¬

Trustee

An underwriting
group headed
by Morgan Stanley & Co. com¬
prising 133 investment firms of¬

Florida

national

Corporation,

Society

American T. & T. Debs.

Joseph

and
this

cents

Offers $250,000,000

the

Vice-Presi¬
assigned to

now

the rate of 32 ¥2

to yield approximately 4.30% to
maturity. The underwriting group
was awarded the issue at
competi¬

1956 will continue in his pres¬
of

are

Indiana

Ohio,

France, who has served as
at
Society
National

J. M.
,

the

Thomas,

and

positions

%ho

continue

$1,100,000 to
$1,320,000
by
the sale
of
new
stock, effective March 11 (132,000

Exchange

Babylon,
Babylon,
given approval by the

mond

Chairman

Bank

State Banking Depart¬
increase its capital stock,

announced

Hurley,

President,

Cleveland,

Director

career

■

was

Exchange Bank, New York, it

T.
President

Bank,

Roy

National

Assistant

to 65

split, the next
dividend
will
be
de¬

tory will be covered by Leonard J.
Schrewe, Vice-President; Charles
F.
Teschner,
Assistant
VicePresident, and Harold G. Kuhlman,
Assistant Cashier.

Board,

First National

York

side

Greater

France,

the

man

tional

Marie Pastorini of the Wall Street
office
have
been
elected
Vice-

been

the

Arthur W. Mellows of the Lon¬
don office and Rodman Frank and

Vice-Presidents of Chemical Corn

divisions,
respectively,
headquarters at 165 Broad¬
way, New York.

Second

for

the

Bank.

scheduled

and

serving

Arthur P. Williamson, Chair¬

capital

Formal

metropolitan

offices

1958.

Trustee of Society for Savings,, as
Avell as Director of Society Na¬

asso¬

bank's

make

four

Mervin
and

ary

value.

the

will

town, Ohio, increased

each,

sched¬

part

Vice-President

Personnel

57,375

was

early

addition

Bank since its formation in Janu¬

Manufacturers

New

from $446,250,

on
Mar. 21 by Harold
Helm,
Chairman.
Messrs.
Cushing and Selesky are members

mid¬
of the

President

bank.

Selesky

Building

about

building

the

National

Mr.

Leichtman,

formely

the

served

ment

Northeast.

ent

Planteroth,

Bank

Harold

ultra-modern

and

increased

the

Morgan Stanley Group

|First National's Missouri terri¬
office

bank

begin

Wilhelm

Bloom

was

After

quarterly

addition, Arthur Fowler, Assistant
will
move
into
Vice-President,
the Illinois-Indiana-Kentucky ter¬
ritory.

site.

new

Society for Savings.

the

is President.

Cushing

Rising Sun Ave., Unruh

while completion

summer,

tional

Viceof

announced

was

Presidents

the

expected

come

been

President.

New

Bank

Martins Mill Rd.

and

board of directors of the Commer¬

New

William
Harvey
Kyle
to
the
Presidency, effective May 1. On
the same date Mr. Kyle will be¬

has

to this time.

elected

and

President

National

a new

dents,
will

jointly announced the election of

years,

Company, New York, Quarter Cen¬
tury Club, Arthur W. Schlichting

Robert

Site

Leslie

will

Burton

department,

Illinois,

Comptroller of the Currency, has

located at

Mr.

assist

Orlando,

24.

Philadelphia, Pa., reports that the

approved

Missouri.

Second

The

March

cents
cents.

as¬

clared

*/'■

At the January directors' meet¬
ing, the quarterly dividend of 60

share.

-v

Semisch,

will
supervision

Price
of
the
stock
has
been around $70 a share since the
first of the year.

spondent

Wall

two premises

Selesky, former Assistant VicePresidents,
have
been
elected

Herbert Planteroth has

will

Carroll

management and direction of this
division of the bank.

old.
a

Mesenbrink,
Vice-President
in
charge of First National's corre¬

30.

President

died

April

1957

$20 to $10, and increases the

banking and commercial cover¬
age in Illinois, Kentucky, Indiana
and

Streets
and, in
1910,
possession of its own build¬

President

offices

During subsequent

the

Cushing and Harold

—

Jan.

thereafter

Robert

its

than

in
on

Vice-President,

continue

its
di¬

and

Bank

announced

personal

sume

was

years

Gaarn,

J.,

founding of

and

57 years

total

Montreal

Bank

following a
special Board meeting at Society

and

was

new

Pine

took

buryi
He

for

cele¬

Bank

the Roxbury National Bank, Rox-

uled

Edgar

This

it will be

1907,

1959,

it occupied

offer-

complete banking service.

rector for

The

William

for

100th

Pine St.

banking

office in Manhattan. Incorporating
the
newest
ideas
in
equipment

Montreal

anniversary in
bank, which ap¬
agents, in New York in

shortly

ing

President

established

and

its

institution

years,

this

construction,

street

quarters at 2

new

years

many

the banking field.

under

1818—a year after the
the

Trust

had

Bank

its

York.

pointed

cial

and

into

moves

Wall

the

Howard

Trust

above

Burton,

incorporator

National

was

shares.

William A. McDon¬
nell, Chairman of the Board.

old.

was

First

Dunellen

St.

When

remained

Irving

floors

tions.

Petroleum

Mr.

and

lour

Harris

from

Thursday, March

of shares outstanding to
1,257,150 from the present 628,575

National

Louis, Mo.,

number

Jjs

new

First

St.

March

Effective

years

a
Y

level, all of which are air-con¬
ditioned, for its banking opera¬

Warren

fc.d.

first

St.

space,
the Bank of Montreal plans to use
the

ren

ment

Presi¬

National

First

was

the

basement

containing

vaults,

The bank expects

location at 64

the

March

assignments in
correspondent bank depart¬

Harris,

Winans

St.,

Gordon

1959, when it will
present

sale

March

Dunellen, N. J., died on March
Mr.

Canada,

agreement

its New York head¬

dent
of

23.

of Montreal,

Bank

acquire

created

George J. Patterson.

entered

owned

Leo N.Shaw

the

effective

was

series of

the

(9,000 shares, par value $100).
George

New

its

increased

Me.,

$900,000

stock

new

Bank

capital stock from $600,-

common

age

SfS

National

Northern

died
84.

banker,

His

—

Joseph

Dwyer is with A. C. Allyn and
Company Incorporated, First Na¬
tional

Bank

Building.

Marshall Co. Adds
(Special to The Financial Chronicle)

Wis.—Lester C.
with
Company, 765 North

MILWAUKEE,

Berryman is now connected
The Marshall
Water

Street.

•

Volume

185

Number 5624

The Commercial and Financial Chronicle

Present and Future Peaceful

Applications of Atomic Energy

(1465)

industry for radiography: measur¬
ing and controlling the thickness
of
pliofilms,
newsprint,
tissue
paper,
tin plating, sheet metal
and
the
automatic
rejection of

detecting corrosion in tubes used

tires

filaments, the discharge of elec¬

empty

been accomplished on a

By DR. DAVID A. KEYS*

packages

Scientific Adviser to the President,

incompletely

belts:

moving

Liquid

Atomic Energy of Canada, Ltd.

refineries

generating

and

stations.

electrical
the

Even

filled

scale

by the

use

from thulium

metal

wear on

tubes, fineness of slurries in tubes,

ing

laboratory

The testing

roads, coating of oil

printing and

machines,

cracks

of the radiation

170.

trification

separating of coal from shale has

conveyor

levels

oil

weav¬

determination

aeroplane

propellers,

action of catalysts and the use of

Continued

moving parts in bearings,

page

Canadian Atomic

Energy group's Scientific Adviser predicts
the next 10 years will see a great nuclear electric power devel¬
opment in Canada and abroad. Dr. Keys estimates Canadian
known uranium

ore

reserves

million tons and

225

production at $300 million; explains

Southern Natural Gas

1958

isotopes have been

uses

Company

put to; reports on progress of nuclear power demonstration

Our Record for the past ten years

plant costs in Canada; and speculates

on future ability to pro¬
Calls attention to extent
qf hydro power in Canadian provinces, and on plans being
made to use this nuclear energy-source to propel ships, plants,
and trains as well as generate electricity and provide heat.

vide other

of nuclear energy.

sources

.The discovery of nuclear fission
and the subsequent first experi¬

of uranium.

mental demonstration of

and operated while a larger num¬
ber are now in the process of be¬

cal

self-sustaining reactor
;

Dec.

2> 1942, created ing built

*^ ja

233

discovery has
brought about

fissionable fissile materials, uran¬
ium 238 and thorium 232.

Nuclear

its

been

000,000
the

special properties in this
such as zirconium, beryl¬
lium and deuterium, which for¬
merly were of purely scientific

been

made

are

estimated
the

before

are

source

new

w®wm fak

of energy

nations. Already

kilowatts

being

released

energy

reactors,
which have three main functions.

produce *

They

known

and

isotopes of
elements, which

many

new

have found useful applications in

period

This

of nuclear energy depends is the
application of the energy released

the

present

time

clear

tracting this nuclear energy from

fuel

from

uranium

ment that

than they burn up

by neutron bombard¬
physicists have thought
of, only about a dozen are at pres¬

caly

238

Acquired a majority interest in The Offshore Company, drillers of oil and
gas wells specializing in submerged lands off the Gulf Coast

Made contracts for

Drilled 19

* Increased

Report, Southern Natural Gas advises stockholders that it

Increased

per

purchase of gas from fifteen additional gas fields

development wells productive of oil

deliveries about 12%

gas
the

over

;

regular dividend payments to

■1

or gas

1955
an

annual rate of $2.00

;

The Results:

thorium

232

(■

Gross

revenues

and net income again higher than in any previous calendar year.

thus, theoretimaking it possible

least,

In its Annual
*

non-fissionable

and

in the future to

Our Record for 1956

special interest to all those coun¬
whose deficiency in fossil
in the form of heat and radiations tries
in a reactor, accompanying the fis¬ fuels and hydro sources requires
sion of the isotope of uranium of the import of coal and oil to meet
their ever increasing demands for
mass 235, which comprises 0.7 % of
Inatural uranium. : Of the several power. And thirdly, certain types
hundred different ways
of ex¬ of reactors can produce more nu¬

be feasible from

excess

industry, agriculture and medi¬
knowledge and technological de¬ cine. Professor W. Libby has esti¬
velopment that all countries are mated that already such isotopes
experiencing a deficiency in are saving American industries
trained personnel to supply the $200 million annually and another
demand.
equal amount for agriculture. Re¬
actors produce heat which already
has been used to replace fossil
Extracting Nuclear Energy
The basic principal upon which fuels in the production of steam
ail present peaceful developments for the generation of electricity.

found to

that

of such rapid advance in scientific

ent

'■ - v

uranium

delivery

mankind of all

millions

and

ago

;

quarter billion dol¬

of this vast

elements that didn't exist 15

of these already have their

ore,

which will be of ultimate benefit

isotopes of the

various elements have been arti¬
ficially created and applied in
many industrial operations. Nine
have

Though the conflict in political
ideologies has been a factor in
this rapid development of nuclear
energy, yet it is the peaceful uses

interest only.
Others have had
their
applications extended and

uses.

lars.

have

many

amounting to

for

NET INCOME

1962, will be in

and

one

value

March 31,
of

and

total

pronon-.

Production

reserves

contracted

found

years

known

uranium production in Canada by
1958 will be in the order of $300,-

field,

industrial

1r
•

about 225 million tons. The annual

en¬

may be released, as you
well know — uranium. But many

new

Canada is fortunate in possess¬

power

new

can

ing large supplies of uranium

has aroused a wide stimulus
in prospecting for the only na¬
turally
occurring
metal
from
which
such
vast
quantities
of

have

which

reactor from the

Ore

ergy

hundreds of

world-

interest,

and politically.

Keys

iso¬

■

the

duced in

—industrially,
scientifically

elements

with

uranium

such

other

enriched

atomic

wide

constructed

age." No other

"the

hundred

uranium

hd|? applied

I of Dollars

research, i n - tope uranium 235 or use salts of
t'r o d ucing uranium, while still others favor
what is com- the breeding possibilities to utilize
fissionable
plutonium
and
monly
called the

Dr. David A-

been

planned in various
^ jciew fields of parts of the world. Many employ
i^'-jfunda m e ntal natural uranium metal, others

;

have

reactors

practi¬

More than

Millions

Millions
of Dollars:

use

all

1956

1955
♦

fissile

our

■

engineering point of view.

When

a-neutron enters the nucleus of
'

uranium

material

atom, it causes a
violent disruption of the nucleus

day at
much

velocity but

this

will

new

applications of

increasing to¬

accelerated rate.

illustrations

fragments which

apart with high

fly

generation

nuclear energy are

235

into two atomic

the

these

All

power,

for

A few

indicate

source

high speeds which, by appro¬
priate design of the assembly can
be made to produce further fis¬
sions,

thus

creating,

chain

learn

use

for

his

improvement and advancement.

re¬

energy
*

address

An.

25th

from

Annual'

small

by Dr. Keys
Convention of

ronto,

before
the

the

To-

Use

753,017

$69,919,556

Net Income per

Dividends Paid per

$10,285,355

$ 8,534,139

$2.35

$2.37

(on 4,375,785 shares)

(on 3,596,699 shares)

$1.85

$1.65

For your copy

our

1 956 Annual Report, write to Dept. FC

Southern Natural Gas

Isotopes

Isotopes such as cobalt 60, iri¬
192, strontium 90, thulium
170, thallium 204, iodine 131 and

WATTS BUILDING,

Company

BIRMINGHAM. ALABAMA

dium

Pros¬

an^ Devel^ner s A««"»ciation,
Canada, March 4, 1957.

pectors

The

quantities

842,370

intellectual

action releasing enormous amounts

Net Income

nations, and permitting
leisure, which mankind must
to

274,851,165

$80,798,930

Average Daily Sale—Mcf
Gross Revenues

vanced

308,307,297

how

energy
of hu¬

stopped in a small fraction of will mean to the welfare
an
inch by striking neighboring manity, increasing the efficiency
atoms,
thus transforming
their of known processes, creating new
kinetic energy into heat.
At the industries, improving the stand¬
same
time two or three, 2.5 on ard of living of all peoples, in¬
the most adthe average, neutrons are ejected cluding those of
are

Total Volume of Gas Sold—Mcf

phosphorus 32

are

widely used in

Southern* Natural

Gas

Supplies The Industrial Southeast

t
*

'•
.i

The Commercial and Financial Chronicle

(1466)

the

in
is

Impelns Natural Gas Will Give

which

)

reach
Montreal in 1958, as "the greatest single project that has
happened in Canada" since the Canadian railroads were built,
Mr. Young surveys the impetus natural gas will give to mining,
metallurgy, making of new mines, metal and ore-processing,
pulp and paper industry, chemicals and petrochemicals, and
secondary 'industry,
industry, and concludes total expenditures across
across

about
about

Terming the east-west natural gal pipe line,

...

demand not envisioned in Canada

but

forest

ous

uses;

which

and the vari¬

natural

Research should inves¬

benefits

trol of the
Because it
of ash and

contaminate

very

process

mine

Province of Alberta will have the

dicative

rich

her

natural

unaware

such

the essentials

which

re-

not

Sherritt

caused

products

sources en¬

Gordon Mines to locate at Edmon-

titles

of their
$36,000,000 successful investment
in the mining and processing of

her

the

emong

tions

na¬

the

world.

ton, the chemical section

their

At the

outset I should

that

state

Mines
and others can process clean natural
gas
with sulphides which
these mines have in quantity. The
use
of natural
gas
is the best

On¬

Natural

Gas

Company
has

Limited

directly

directly all the
.franchises

Noranda

Nickel,

method

in¬

know, however, that Inter-

also

national

our

Northern
tario

chemical products,

and

ores

be quite low to consum¬
too early to state here

these

know

that

J than

quoted

and

half

the

what

will

rates

will

they

may

rates

probably

only oneto cities

gas

the eastern

pect to be very
Canadians

will

sea¬

will

happen

work

with,

ada's current 360,000 tons

elsewhere,

and

Texas

-industrial,

the
rates
must,
of
high enough in their
yield to make financing on a large"
scale practical in bond issues, yet

the

still

other hand,

be low.

hearings
be

can

the rates will

When all of the

nicipalities

have

had

before

the

wonderful

natural

Chemical

resources

of Canada stands the loyal and the
adventurous

ship.

quality of its citizen-

Secondary

Industries
on

the

average

212 cents

and

The

main

which

this

200

over

announce¬

Y"'

34"

same

lion of

line

miles

(of
com¬

are

recall

forest

the

cover

hillsides,

broken

slide

and

slip

the

NORTH

would

still

domestic

and

period, the amount of

the

coal

volume

into

greater battle to ever obtain sec-

his

th.^, divers taking the pipe line

ondary industries aided by natural

crease

with it

making gas delivery to the

?o nn<?nnAlmp0SS-1jJf' Fo?lowin£
$2,000,000 expenditure in sur-

by Trans Canada Pipe Lines,
they finally adopted the alternaveys

gas.

Natural gas is the best fuel

dealer
of

out

One"

envision

can

the

being extended to Noranda

and beyond

through arrangements
underway, and to Blind River

now

Uranium field as well.

The

energy

business,

business

through

growth

with

ores

their

natural

Canadian
at

use

least

market
180

promises

billion

cubic

feet

year

of operation. This one pipe
will deliver four times the

gas

per

year

the

fifth

the

will

in-

accentuated

North.

sulphur- content

will

gas

Important

northward

start

the

move

$7,000,000

Du-

Natural

Gas

will

first

offered

the residents of the North who

are

franchise participants and then to
Canadians in general to an extent

exceeding $30 million. Should Ca¬
nadians not

Ontario

finance

Natural

the Northern

Gas

Co.

bonds,

processing of Pont, industry locating at North then, of course, they will not only
pelletizing iron, of which Boston Bay exemplifies. ' The difference be offered to, but will be taken
Board of Railway Commissioners
up by our neighbors across the
Creek-low grade iron ore is only.is due to the fact that
now
coal
across Northern
Ontario, and there one example. The benefits will has to roll
Niagara "always more bond than
very
long distances
?*pe line Wl11 be laid in not appear to the ordinary citizen from the American fields to our fortressed b o u n d a rv," because
live

route

filed

with

until he
+

Greatest

•

Single Project

Railways and Superintend-

AT01> Fesources Development
j

years and
as

few

know

ff°hi coast to coast for

thereby knowing Canada

men

had

it, I

the

opportunity
strongly of the

fKim^Eas^to Westlffh^Stw
st. \s th? gieatest

single project that has happened

tuJ:?us ™en

lacific RalLay
Northern.

the pay-|

There is

across

the North.

a very

strong industrial

momentum

today

building

chemicals

and in

allieci industries and it
States

can

only

during
the war.
country's tremen-

with the north
dous

natural

resources/dnd~Cana-

dian know_how'
travel at
was

the

we a\e

S°inf to

faster\>ace

still

case

than

other Countries

compre-

mining and
making of new mines and auction- of
fertilizing
products
processing of ores and the metals similar to the production of ferand the

which
so

make

many

Canada

the

other countries.

envy

This

can

tih.2e« at Consolidated Smelters,
and thereby

increase

the values

also be said of the pulp and
paper
industry, second only to mining in

of our agricultural production because we all know that the continued cropping of the Tarious
ing other production in its further clay belt areas now* necessitates
its northern expansion and await-

growth
can

which

natural

gas

bring.

alone

oil

Prairie

our

it is hard to envision.
a

gas

Prov-

the

kind Provi¬

booster

stations ; will

be erected
to 150 miles along the
route of the pipe line,

every 100
.

It would,

brave man who

Proven Gas Reserves

/./.

The-starting point for the development of this great
dustry—the natural gas

new

in-

industry

of ample gas

E?l£»
***
ncr.dfoveiy

in Central
f1} Jieserves has

^
that these leserves-have developed

devriopinZgaTreserveTTufoil
acv eioping gas reserv es,-but oil.
Northern Ontario Natural Gas
Company has franchises to serve

rifunicipalities
the
that

and

will

company

and

from

way

Canada, March 0, 19S7.

uranium

and kindred metals with-

for

over

20-year

-V '■/

period.
Provinces
/

and

"•

Dominion

Cooperation

the

ensue

industries

the

Prairies

volume
because

of
of

typical of Premier Frost's '

aid

all
to

capital

trade

will

well

continue

to receive cordial welcome to Can¬

ada.

There are about $10 billion
invested in the natural gas indus¬

try

this continent, which "is

Demand

for

natural

gas

cold
as

winter day may be as much
15 or 20 times the demand on a

day.

Conseouently,

natural gas companies must main¬
tain large reserves to meet these

daily peaks, and, of cou^e, line
capacity and pressures with which

his

North, and also his
stand

iron

curtain

differing: from
rather than an

predecessors,

between

the

Prov¬

inces and thqiDominion of Canada
so

nonconstru£|jye.
The

annquniSfflfoent by the Right
tt Howe of the con¬

Honourable C.

struction of this important link by
this Crown company from Winni-

to the Head of the Lakes this
and finally

to Kapuskasing
brings natural gas to Kenora and
Dryden. Then on with all its po¬
year,

tentialities

vital

the

Head

the

Canadians

Lakes,

which

Howe,

all

Canadian

route,,

which, of

course, would have by¬
passed Port Arthur and Fort Wil¬

liam,

what

fact,

by-passed

call

Northern

Ontario

country down
Sudbury lying

North Bay and

all. of,
developed

the

beyond the Head of the Lakes.
The

franchises

for

furnishing
gas from the main pipe line to the
cities, towns, and huge industries
at the Head of the Lakes, Kenora
and

Dryden, are controlled by the
Northern Ontario Natural Gas Co.,
affiliated with Twin City Gas Co.,
and

qpjjjis project alone the esti¬

mated expenditure at the. Head of

the

Lakes

amount
do

with

$10

million.t._ Thjs
has nothing to,,

money

the

cost

building the

main pipe line.
To consumers

across

Canada let

make it crystal clear that Nat¬

ural Gas does not have the explo¬
hazards of manufactured gas

sive

all.

Further,

the

Government

in Ontario is
matter of
to

going "all out" in the
safety appliances, even

the manufacture of

gas

ap¬

pliances to be installed by dealers
to customers everywhere in On¬
tario, Inspection is also a "must,"
well

is servicing by the vari¬
comnanies taking gas from
the main pipe line.
Their
coop¬
eration with town and city instal¬
lation for piping in streets is one
of tremendous magnitude all the'
way from Winnipeg to Montreal/
In
all this.-Mr. Archie Crozier,
as

ous

gas

Chairman

the

Board has been

Ontario
very

Fuel

business¬

and diplomatic, with all the
conflicting interests,. as to here
mention, as also has the

merit

Porter

Honourable

Mr.

mier Frost.

As construction

these

ceeds.
have

pine

Ontario

and

links

Pre¬
pro¬

must

line laying companies
,

of the highest standard like Cana- ;

dian Bechtel and Mannix. because

it is a tougher job across the North
to each market
The importance of underground country than -through the prairie
orovinces. It involves "top" pipe
storage thus may' be readily un¬
derstood, for huge volumes of ga? laying equipment, not second to
to deliver the gas

must

be "on

tan" for

instant de¬

livery to meet changes in weather;
and constant increasing demand*
of householders heating with gasi

use

residential

gas

customers

now

for their entire space heat»

ing requirements.
Underground
means

gas

pleted
which

pulp and paper mining industries,

the

informative compilation.

one

having the business will

admirable

Texas. This wonderful

storage

simnly

gas

fields

the original

—

fields

gas

was

from

with¬

drawn and into which gas is now

pumped during the summer, or
days of Tight demand, in readiness
for- the 'winter ahead.

stronger

than its weakest link.

Refugee

Labor

Supply

It is vital to mention labor here
because

the

statements

the

admirable Gordon Report, and in
all

that the company uses de¬

pipe line—

largest in the world is no

Approximately 45% of Union Ga?

Ynnui" Conv^nti^Tf ^PrUl! w?uld kave envisioned and stated be even greater than anticipated,
rectors and Deveiooers Annual
Mating, wbat
has already happened in Large industrial users'," like our
for
to,

risk

tourist

Co.'s

25th

their

warm summer

fertilizers, the benefits of which Toronto
for instance, be

one

built up by chemicals throughout —is the availability

Lend what natural gas is
mean

and

natural

West to East and

their ' dence has given to Canada/ Large

be compared to what happened in
United

gas

American

whereas

inces will be to
in Canada greatest gifts that

One of the benefits to the agrigoing to cultural clay belts through which
metallurgy the route passes will be the pro-

people

northlandi

Canadian the WOrld'

and fee

Few

the size of

sees

industries

Canadian Na-

•

new

rolls that wiil ensue from the new Will flow from

Haying
been on the construction
both lines of the
5P

the

luai'OV.

sional

but also in

contracted

sisted

Also the branch line which
build
from
North
Bay to

lines

com¬

yet known to man and not only industries realizing the advent of
jn the separation of nickel copper

sus¬

associated with Premier Frost in¬

laid

Toronto.

supplied by natural gas increased
freight chem- by nearly 400%. ;;yyyy;,vy\.\..;.>

have

for

through part of the north country

well

supply throughout the heat¬

in '57.

money

the

would not have been possible had
not Right Honourable Mr.

will

private

across the icals from Edmonton and Calgary
In.
a
country
as
cold as the line
personally to Toronto and Montreal and it is north
coumtry, a lowering of the .amount of equivalent energy that
filing with the Board of Railway informative that freight rates on costs ,of fuel
yvill mean much to 'will be generated by the much
Commissioners for Canada an "alchemicals from the petrochemical
our,rlabor throughout the North, publicized St.-' Lawrence electric
ternative" route for Trans Canada
Action of the Texas gas fields to lowering and
equalizing cost "of power development.
Pipe Line away from the rocky Ontario and Quebec are still lower all
heating fuels in the North,
shores of Lake Superior and the
Financing Northern Ontario*
than our Canadian rates from Ed- because from the Scranton coal
treacheious clay slides along the
Natural Gas
monton and Calgary to the East, fields all the
way there will vet
rapid rivers flowing into Superior, were it not that the pipe line is be a
Bond, debenture and share fi¬
lowering of freight rates and
Slides 2,000 feet long, would, once
coming through the north country, of coal prices. Instead of putting nancing of the Northern Ontario

will

which

upon

already, will
Winnipeg, and then

Many of my'friends

north

tained

peg

pipe

pleted) from the western gather¬
ing stations, Trans-Canada having
expended on surveys, etc. $15 mil¬

it costs around

pound to

removed

company can draw against sudden

final

Board,

further informative

mu¬

their

accurately dealt with

ment.

mercial—in the United States, in¬
creased by about 100%.
In that

from East to West, for high above

bank,

they

gas

Replenished, they

years.

dollar

while

course,

year

was

time when the

greatest potential recovery of sul-

ex-

the

over

approximately

feet

in U. S. dollars

year

Canadian-U.

and

creased to 25%. Between 1938 and
happy with all the sulphur in import bills today from 1955, total energy requirements

management is Canadian.

Township, Lamb-

The

cubic

but ing season. Gas is forced in under
be pressure. This means storageTor
Alberta gas they have extensively
now

be,

Canada. - In 1938, 12% of the total Sudbury may be constructed at
the same time, because Interna¬
and industries
phur from the sour gas from which energy used in the United States
tional Nickel is the heaviest de¬
all the way
from Winnipeg to cur clean gas will be produced came from natural gas;-in 1955
sirable load between Winnipeg and
Toronto.
Engineering and office and which will balance out Can- the natural gas share has been inCyril T. Young

towns

serve

Dawn

even

the !, gas
cost

per

come

rent

concentrates.

by which they can make
elemental sulphur.
Naturally the

ciny

consumers,

board/ The saving of at least $100

con-

claim small amounts of precious
metals with relatively small-scale
operations, even permitting '.the
final product to be shipped instead
of shipping concentrate bearing
their higher freight rate. One can
study natural gas operations all
the way from! Butte southward
towards the: Panhandle Where you
will find that gas has often supplanted electric power and gas
machines are i installed instead,
The role played by gaseous fuels
in the United States during the
last 15 to 20 years is strongly in-

country in
the whole world to live in—is to-

County.
billion

peak demands,

million

required.

sulphur,

best

Ontario

rates

like New York

filing

Added to this is the fact that its
flexibility is equally efficient in
large or small quantities and
therefore makes it possible to re-

the

—

Board

The
participation, in' a link'
cur¬
across
Ontario
by the Ontario
trade; Government of
a $35 million
loan,
is a clean fuel, its lack balance
badly needs that help.
payable by Trans Canada Pipe
other residue does not There * is nothing to worry about;
Line is

where

ores

fields

and will

metallurgy,

ancUhe

ores

Union Company presently
underground' storage '

two

act

lower

its

cheaper

/The
uses

and
that rate has already been
carefully examined and scheduled

processing.

affording

Fuel
the

set

low

Savings Involved

levelling

originally contained

the

"valley

the

Only

ers.

call

Thursday, March 23, 1937

ton

how

•

today.

rates,

tigate pyritic golds to recover gold
values, using natural gas in the

what

enables

rates than-'could be possible in an
area
where it is only residential.

can

will

gas

use

which

out

re¬

that when
clean natural gas is put into The
day entering into the great and pipe lines at the gathering stations
splendid future wrhich is the des- that there has been extracted some
Canada

gas"

do, for not only mine

products

industrial;

may

Canadians and Americans, and foresees natural gas having
a

user

be put to not only in heating and
in other household uses as well as

during each of the construction years will come to
Indicates composition
composition of financing by
Indicates

a billion dollars.
a
billion dollar*.

sulphur

yet foresee .what

search will

By CYRIL T. YOUNG, F.R.G.S.*

will also

Uranium

years.,

new

cannot

one

Co.
Vice-President, Prospectors and Developers Association *

five

large

plant at Blind River
exemplifies;
In the, North

area

Director, Northern Ontario Natural Gas

Canada

last

very

Norand's

To the Entire
:

the

Bank

President's

yearly

statements that labor and material
Will prove

"bottleneck" in fur¬
ther construction this year. Para¬

mount

relieving this situation

of labor ivill be the influx of high
class young

immigrants from Hun-1

....

Continued oh page

♦.

(1467)

Ifs

gainful

Man's

sounding f3oard, chief counsel and herited these stocks from their
Prepare her for some
Time and husbands.
. occupation. .
: : —.
,
•-/-*
time again he'd discuss a business
So when we consider the fact
See that she understands ,the
problem with me, urging me to that his wife is quite likely to stock market and the handling of
take
the
opposite viewpoint to survive him, it seems to me that investments.
;
.
help clarify his thinking. "I want a man is piain negligent when he
-Make sure >she gets to know^
you to understand what I'm doing js willing to work himself to an your
banker, your broker, your
and what I'm planning to do," he untimely
end for the sake
of insurance man and your lawyer,
said many times.
V
acquiring some wealth, and then
And then, to give her the tools
All of this
this
sharing of faiis to instruct his wife what to to work with,

closest business partner.

Duty to Teach

His Wife to Be

Widow

By MRS. CHARLES ULRICK BAY*
Chairman of the Board and President, A. M. Kidder & Co.

Executive Committee Chairman and Director,

—

American Export Lines, Inc.

First

to hold

woman

.;/ duty to teach his wife to be

America's
America
s

long

havp
have

wompn
women

first voted her way

into the jail-

bless

ing

say,

purchase
made.

Today wom¬
over

abilities

of women

Mrs. C. Ulrick Bay

big

Widowhood

for
.

and

I d

istnat

and again

duty to teach his

s eyery man s

t»j

point

loss

Would

however, that it's
who need a will

add,

not the oldtimers

the

it's

most,

the

be to

would

attitude

this

though

even

own

go a
that

say

this

some

country

people

young

she is

cause

be-

woman.

happy. ,
I confidently

look forward to
the day> maybe not too far off,
when all husbands will take their
wives into their confidence.
I am hopeful that in my
this

With Curran Co.

affairs. They are:
her to handle

woman

you

his

Rogers,

Don

SACRAMENTO, Calif.

serving

are

men

top brass, in thousands of busi-

nesses—but the number of women
in such jobs you can

count on the

two hands.
executive position

fingers of your
A

top

cr>PnHinc*

y
—

■

emotional

maturity,

stamina, and

enterprise.
Only

Avenue.
*
-

nrrvtframc

—

excellent

•
is

rare

serve

can

good chief executive.
let me say right here that

are

this

just as many rare women

country

there

are

rare

men.

One

the

reasons,

believe,

that more women are not holding

executive
many

wonderful

lady

Arlene Francis—on
coast

NBC

mothers,

positions

women

hard

"Home"

television—

her coast-toNat-

show.

at the mercy of

that

underrate

selves.

too

them-

have

many

talents,

abilities. For example, many
women do an expert job in home

many

PROGRESS

J STABILITY

them.

who
knows all that can be known
about her husband's business life.
is there

wife in this audience

husband
wife

whose

audience

this

knows:

HIGHLIGHTS:
■

All

about his

investments.

All

about his

debts.

All

about

how

his

■

enter¬

■

How much insurance he

will

Who

Many thought I

SALES:

carries.

administrator

■

Tile sales

EARNINGS: Net

$1.49

Where his will is filed.

for the presedt.

added

were

his

handles

business

units

capacity 50% over 1955. This marked the completion
the Company's current expansion program.

family expenditures.
about

Two new
in 1956 —increasing

COMPLETION OF CONSTRUCTION PROGRAM:

manufacturing

All about her husband's income.

Many women all over the coun-

try wrote to me.

the. wife

wb0 knows, or is there a

indeed

Rare

for

the business world
it thrust upon

setting

letters

read.

were

most

fact,

up-

made

tax bite win be

20%.

profit amounted to $1.56 per share versus

a year ago.

CASH DIVIDENDS
a

rose

per share (including
marked the 9th year of un¬

continued at $.70

10^ extra payment). 1956

interrupted payments.

Who Inherits the Earth?
point face a rather

blunt

the joint

know

income tax return."

Fortunately, my husband and I
always partners.

ty,P

fact:

One

Rihip
the

one

beatitudes
hit outdated You
of the

where it says

■

STOCK DIVIDEND

of 5%

was

ing the number of shares

Let's at this

who wrote: "The only
thing in business that I share with
England

is signing

his estate.

nearly

all of them could be summed up
in the words of a lady from New

husband

mucb 0f

that

the Meek shall inherit the Earth,
well, it's no longer quite true—

perhaps it's becoming too true,

were

He shared his thinking with me.
I always thought that maybe a lot

At any rate, it's not specifically
the meek who are inheriting the

of people wondered why I was earth—it's the women!
always trailing along with him to
The latest survey conducted by
business luncheons and confer- ^be New York Stock Exchange on
management —running a house- ences.
-the ownership of the securities of
hold, planning an addition to the
During our long stay in Norway, public corporations shows that a
house, supervising the contractor when my husband was beset with little better than half of the stocks
—77"
many official duties, and when it owned in tbis country are in the
Youny President's 0rgani^u«n,OWhUe was~ necessary
to run his busi- possession of women. A majority
Sulphur Springs, March 20, 1957.
nesses by long distance, I was his of . these women, of course, inWomen

GROWTH

find

thev

when

talked about widowAll
hood,> and I told her how my prises.
husband, quite unknowingly, had
urally,

continuing

who devote most of
being good com-

girls
lives

panions, good

___

yOUr husband's business

dreds

who

.And
there

year

-•

man

the

hacI done something wonderful by his estate if anything happens to

ties.

The

their

business pointing out that husbands should him.
these needed abili- tell their wives more. The hunHow

minority

people possess
It

re-

of good judgment,

combination

Ray¬

g P 8

But there is something you can

It requires prepared

quires many abilities.

—

the wife,

best wives often make

The

have many

—

Thousands

(Special to The Financial Chronicle) >

„

varying ages at poorest widows,

should
especially the be your business. Knowing more
gifted and enterprising, woman— about it will make you a better
has a new and deeper responsi- wifeY Knowing
more about
his
bility thanrever before in our business will prepare you for any
history. She has a responsibility eventuality.
to carry her share of the leaderThere are still too many men
ship along with men of equal who regard us
as
just "sweet
ahilitv
things" to be provided for but not
ability.
Frankly, there are not enough to be told anything,
women in top executive positions
a few weeks ago I had the
in today's business world.
privilege af appearing with that
But, what we do assert is that

today's

true.

come

new

responsibilities. I can help make

J®**
yoU m0re
ab0Ut his bUsi" alone—they
l,fbos J" the
™ods. ,whe" le"
ness.
v's; v..
are the girls who are

Executives

Female

Need

just

position

and

Teach

homemakers, good
workers in their
community affairs and churches,
do—at home—to take your place are generally the ones who know
with America's women. And that the very least about managing
something is to get your husband their-husbands' estates. They are
_

authority

only one

wife

book, "Teach Your Wife to Be A

prob-

Making Women Partners

certainly don t assert that a
woman
has any special claim to

his

married about his business, I am most

younger

tt......

that many of you have many

increasing home. I know that

tell

Curran' "company ° *433Y- Fourth

misdirection,

employment of women has added important responsibilities.
a
new
potential for executive
,
manpower.

convinced

in lagging product designs, in im- are killed in highway accidents matters, to write checks, to plan

little further. I'd lems,
the

back today.

nation's total manpower resources,

I'd like to

have

mond E. Flaniken is now with The

economic

in this problem. /
No talented woman should stand

which reported to Presi-

husband

Widow," which I hope all of you
dent Eisenhower that this rapidly
Now, of course, every woman will take the time to read thorincreasing employment of women can't step right out of her home oughly, comes up. with a startling
has added a new dimension to the into the business world.
I know and profound fact. It's this:

own

budget

recognized in the report last
of the National Manpower

week

her

death does essary for the husband to take in
We persist teaching his wife to handle her

be- die-aged Americans
not .seem inevitable.

merely

women.

are

rivalry with the Soviets, the very
The statistics are with
security of our nation is involved They can't be changed,

our

Council

Keep some emergency money

country, the employment
in increasing numbers
become most essential.
This

was

Stretch insurance to cover the

mortgage on your, home

I tell an audience as only most important to husbands
sophisticated as this one of the and wives, but to the nation and
paramount importance of a will? its future.

paired employment relations, and and more middle-aged husbands
in ill-conceived financing.
are killed by heart attacks than
Indeed, in this crucial period of in any other country in the world!

will con-

And they

women

has

„

executives

they

nation

tinue to grow.
of

well

leaders.

needs

What

wom¬

daily.

are

Our country is woefully

cause

business

grow

Educate

bargain¬

stress tnis again

capable

The

in industry

and

„

nation's

ranks of

Prepare a will,

short of wife to be a widow. -.
COUples. A young wife faces many
executive leadership.
I will never understand why so more years of possible widowhood
And this situation promises to mapy husbands fail
to^ plan for than doeg an aging wife And a
become worse as the years roll on their wives
widowhood, in spite
|g d-,e most necessary fundaand our country, its gross national of
the statistics that show that mental structure of a peaceful and
product and its population grow women outlive their husbands at secure widowhood
like Jack's amazing beanstalk.
least seven years.
... ..
v ;/■■■
" •
r
;
What a tragedy it would be if
Primarily it's because we all
Eight Vital Steps
we were to maintain the old superhave that "it can't happen to me"
;
Y
stitions which wall out millions of attitude. To most young and midThere are eight vital steps nec;

wealth,
and
they
have
their say-so in
virtually every

jobs.

put to work the knowledge I have

company.

the

naive and inexperi-

he has wasted his lite

Wl11 be "imd
tenfoldit brings.
because of, the
need to tell anyone that this sub. .
ject is most important.. It's not

intuitive

skillful,

America

they have the

million

opportunity to carry on the ideals
of -my husband, and to actually

known.

them,

hold

grateful for this rich and
I now have an

varied experience.

steel

and

The

have the vote,

tivities in particular.
I

private sayings .or
have a ^a*r ^or business cbecking account.
details that men seldom possess—
write her a letter instructing
ar!d that once she.s_ mnoculated jier what to do and what not to
Wlth the business bug, a wife do
;
,
/
ma^es the best business partner
j know fbat this subject is not
a .*?}ai?; ev®r bad -and his reward a pieasant one, but I surely don't

mannw that xnrmiiH
manner
that would

iron

Today, women, and I rev¬

erently

ofsa

Hn rrp^it
over the years as his
do
credit acquired
buginegg partner in varied enter- Peace of
to the administration of a major
prises.
;
* • .•
v.>
• "• Need

in
in

oomp
a
corner

since Susan B. Anthony

way

house.

to dump it into the

I£ h ,g going

myThusband's plan to

widow." The A. M. Kidder &

do with it

alhpart of
hands
make certain , I understood busienced Wif
ness in general—and his own ac-:

man's

every

Co. top executive outlines eight vital steps necessary in edueating a wife to handle her own affairs, and sketches the extent
her own husband developed this educational process.
Mrs.
Bay maintains the statistics are with the wife, they cannot be
changed, and, it is the women who are inheriting the Earth.

/
,

thoughts and plans* this eagerness
for. my thinking-^was evidently

positions of Chairman and President in

New York Stock Exchange firm contends "it's

paid in September—increas¬

outstanding from 645,200 to

677,460.
A copy

of the annual report

booklet may be

obtained by

writing the Company at

Lansdale.

Manufacturers of ceramic

\ wa|| ancj f)oor tne

American Encaustic
Thing Company, Inc.
"America's Oldest Name in Tile"
Lansdale >•

Pennsylvania

Significance io the U. S. of
Quebec's Low Grade Iron Ore
By ROBERT BERGERON*

Mines,

Staff Member, Department of

Province

Quebec

and extensive iron

Quebec mineral's expert probes the varied

deposits, describes the activities of the mining companies in
the Province, and ascertains significance of Quebec develop¬
ments for the Uraited States.
While Ihere still are obstacles

low

ficiation

and bene¬

mining

scale

Large

iron

grade

ores

iron

tion

Bay,

annual

mates

answers

America.

beneficiated

The

overall

properly agglomerated,
higher iron content and
a

centrate,
lias

lower moisture than

ehipping ores." It

"direct

most

be used in

can

the blast furnace which makes pig

iron, and in the open hearth furwhich converts pig iron to
steel. In the latter operation, the

iiaee

for

need

steel is cut 50%.

scrap

1955, consumption of low grade

iron

ores

about

was

sumption

United

the

iron

States,

total

the

con-

Mount

District

IVIounl

main

Three

Wright-

the

have

years

by detailed geo-

logical mapping, dip needle suraccording to Verne veying and diamond drilling. The
D. Johnston's estimates.1
company reports that this exploThe
mineral resources of the ration work has indicated roughly
Province of Quebec are known to 198 million tons of ore grading
be varied and extensive.
This is about 30%
iron. A preliminary

it will be 27%

docks

the

end

capable

handling the
is found
on

boats

ore

difficulty is the

shipping

A big
of the

shortness

which

season,

extends

from

about July 15 to Oct. 25. To
offset the short season, it is pro¬

posed

com¬

ship

during the
Bay

concentrates

ore

from

summer

point

storage

Ungava
where

trans-shipments could be made
during the winter months.
The
coast immediately south of Godthaab, Greenland, is said to offer
favorable sites for that
The production

purpose.

of the iron ore,

concentrates,

the

Morgan

Range would be hauled to Payne
Bay for shipment.
Preliminary
locate

surveys

railroad

Morgan Range and Payne
Bay have been completed.
Beneficiation methods have been

carefully

investigated,

centration

Bay* *r3n formation is known to

iron

™

tests

concentrate

and

the

have shown

ores

iron

holds

con¬

magnetic

that

fofm

the

%'
of

about

rence,

Iron Ore
the

Schefferville

huge

area

de-

claims in the northern part of the
Labrador Geosyricline. These are:
Consolidated Fenimore Iron Mines,
Limited; Oceanic Iron Ore of Canada, Limited; International Iron
v
i
\/£nd: Atlahjic
air-Borne mag- Ore, Limited.

produced. In 1956, the company
granted an option on its Mount
Wright property to W. S. Moore
*ron Company, which will contlnue the exploration work on

the

Of magnetite-bearing sand grading

approximately 4%;

posits of low grade iron-bearing
mateiial have been foundin many
parts of the province. The locations of most such deposits aro^Sese
shown

the

accompanying

map.
.

District of

Mistassini

Lake

As a result of an
netometer survey done early in
1955, Bellechasse Mining staked

independent

consultants and
specialists examine its properties

call for an open

essing plant,

Consolidated Fenimore Iron

port,

Mines, Limited, holds two blocks,

and

seaport,

pit mine,

a proc¬

town site,

facilities

storage

already mentioned

trans¬

A number of mining companies
have searched for iron deposits in

Lake area

claims in the Midway one on Larch River about 20 miles shipment port. All this would
approximately 25 miles west of Kaniapiskau River, the resent a minimum

the

southeast

Lake

Mistassini

and

1,100,000 tons by 1959.

The

Iliiton

known

The

jointly

long.

The

pany

mine

sidiary

first
a

grade

iron

Range

about

miles

mentioned

com-

wholly-owned
Cleveland-Cliffs

the

had

has

treatment

ores

the

Michigan.

was

initiated

Included

500

which

rience

subIron
expe-

tow

Marquette

Exploration
in

1952

considerable

stripping,
ground
needle

detailed

surface

sampling,

geophysics including
traversing,

amount

and

diamond

clip

limited

drilling.

number of deposits have been lo-

cated

result

Metallurgical
formed

tests

the

this

low

work.

were

per-

grade

iron-

bearing material.
An

average

crude

analysis

gave

roughly

18 samples taken in two

31%

iron,

50%o

alumina and titanium dioxide.

Davis magnetic tube test with
100-mesh

grind gave

30%

31 %

Preliminary

iron.

concentration

a concea-

shown

have

tests

lhat a concentrate grading 68% to

other in the

expenditure of

vicinity of Leaf Bay. $100,000,000.

its

company grantqd an option on
Midway property to Midway

^P^v33/'

subsidiary of

Plcka»ds Mather Company,

The

initial

annual

pellets.

about

Ottawa

This

miles

and

now

equally owned by Stelco Mines,
Quebec, Limited,-and by Bristol
Quebec
Miriipg Company.
The
latter, in turn) is owned by Jones
and

Laughlin

and

Pickands

The

pany.

low

which

Steel

Corporation

Mather

will

ore

grade

and

come

magnetite

Com¬

from

Deputy

The

centrating-grade

indicated.

company

billion tons of
ore

have

International

re-

obtained in

ploration

been

coast

More than 90% of this

Iron

1953

Limited and

Ore,

two

Limited,

mineral

ex¬

licenses on the west
Ungava Bay. These two

companies,
Eaton,

are

Premium

studies

concerning beneficiation
techniques and the location of
site.

Ore,

investment

of Payne

owned by Consolidated

International
license

com¬

controlled
Iron

Canadian
-

docks, mill site and town
However, early in 1956, the

Ore,

con-

Iron

Ore

600 square

River.

Limited,

company.

worked between

1872 and

1894. It

has

recently been decided to re-"
open the mine and build a concen¬

trating plant for
duction

600,000

annual pro¬
of pellets
iron. Mining

tons

grading about 66%

will be done by open-pit methods.

Magnetic iron
to 35%

iron

years

ore

grading 32%

discovered

was

ago

about

few

Duncan

near

miles southeast

Lake,
of

Fort.

George on James Bay. Prelimi¬
exploration carried out by J.
C.
Honsberger has indicated at

nary

least

half

billion

tons of ore to

of 600 feet.

This estimate

to be proven

tests

by diamond

'concentra¬

Preliminary
have beep

very

satis¬

factory.
Becpnfly it was reported that
drilling done by Atlin-

diamond

Ruffner Mines indicates the prob¬

able-existence.

oU an important
grade iron deposit in Montgoll'ier Township, about 80 miles
low

north-northwest

Amos.

The

grade of the deposit is aporoxi-*
matcly 30%. iron, according to the
limited amount of assaying done

holds

-Matonipi Lake

area, approximate-

Exploration

work

started

"™R^Tint<LMininrCmhpany
Canada,

holds

two

blocks

and

claims in the area south of Payne

in the Mount JWright-Mount Reed

River.

area in 1952, when many groups

investigation of the areata 1954,
1tensive
,camPany carried out an ex-

of claims

March 6,

156, No. 12,

were

staked.

The

com-

Following

program

1355
pp.

86-89,195S.

preliminary

and

miles north

In the vicinity of

8 miles west-northwest of it,

exploration work has indicated
large
tonnages
of
iron-bearing
rocks of

concentrating grade.

.Production
progress

should
The
was

studies

and

come

within

construction

are

final

now

decision

few months.
an

completed last fall.

tration tests have shown

airstrip
Concen¬

***■ T)?is included

sur-

selected

Island

by the company at Rype

near

located

point
d'Or

dis¬
Township,

Houded

Pontiac County.

iron

This property is

about 32 miles west

the

Mont

Laurire-Val

highway 70 miles northwest

of Mont-Laurire. The

sists

deposit cortmagnetite-rich material

grading 23%
to
quartz-plagioclase
a

65%

with

tained

30%
iron
in
gneiss.
Con¬

tests

have

68%

iron

recovery

with

shown

that

concentrate

of 90%

be ob¬
grind. In

can

60-mesh

January, 1957, O'Leary Malartie
Mines, Limited, which held the
major interest in the property,
accepted an offer from Holannaft
Mines, Limited, to take oyer and
develop its iron property.
Conclusion
It

can

still

seen

obstacles

that

there

overcome

are

order to bring most of these large,

low-grade iron deposits into pro¬
However,
most of the
metallurgical problems concern¬
ing beneficiation techniques have
been solved, and, at the present
time, one can state that, providing
the existence of large tonnages of

duction.

low-grade iron ore of concentrat¬
ing grade, ways will be found to
make

posit

even

pay

the

most

remote

de¬

off.

the pos¬

sibility of -obtaining high-grade
iron
pellets.
A
transshipment
point, roughly 660 miles from
of exploration in
Hopes
Advance Bay has been

face exploration, detailed geologi-

centration

the vicinity of the bay and north
of Ford and Red Dog Lakes, 16

be continued in 1957.
the
1956
season
the
company
Cartier Mining Company, Lim- started building an airstrip south
Ited, a subsidiary of United States °f Beaf Bay.
Steel Corporation, explored the
Oceanic toon Ore of Canada,

Minister, Department of Mines,
Province pf Quebec, before the 25th An¬
nual Convention of the Prospectors and

one

in£ of this deposit was started able would be a straight magnetic
separation with flotation cells for
durin£ the 1956 season and will cancentrating the tailings. During

1951.

vrZnM »i.hd'lh",Jryn."to»Be.rfg'Z

drilling.

ports that

Iron

Le^Bay

ly «0 miles east pf Mount Reed

m0nd

Atlantic

minor
magnetite.
Jones
and w?1^ced-. This contains about 200 nages of concentrating grade ironLaughlin Steel Corporation he- ££^*25* southof
bearing material.
Atlantic Iron Ore's license
Quired an option m the spring of The initial annual production
covers about
160 square miles in
on fhis large, low grade, iron would be one million tons of conthe Hopes Advance Bay area.
In
deposit. Drilling and oth£r test- centrate. The best process avail-

silica.

1957.

deposit

discovered in 1870 and

was

covered

Quebec Cobalt and Exploration, pany announced its intention to Robert Lake (latitude 50<>25' N.
delay a final decision as to pro¬
Lim»ted, has outlined a large ton- duction until all available inform and longitude 70°30' W.) and par¬
naSe of iron-bearing material mation had been gathered and inT ticularly at Kayak Bay near the
mouth of Payne River,
detailed
grading 32% iron. The iron oxides vestigated. The North Finger Lake
geological mapping, sampling and
are mainly coarse hematite with deposit would be the first one
drilling have indicated large ton¬

trate averaging ,66% iron and 8%

■

surveying, prospecting, and approximately 30,000 feet of dia-

»*££ KftS? SSIotaMe'SS
the

„

ore zones

silica with low sulphur, mangan-

Ex-

dip needle traversing, has indicated a possible large tonnage of
iron - bearing
material
grading

and

geological mapping, trenching and

Wright.

iron

located

northwest

formerly
mine, will

Bristol

area

than

belt

Company,

work

companies in the

control

claims

ese,

Mount

rep¬

mine,

the

produce

soon

ploration work, consisting mainly Exploration of the iron formation production rate has not been an¬ to date.
Canadian Cliffs, Limited, and of
Another
detailed geological mapping, included detailed geological map- nounced yet. It will probably be
large low-grade
J.
O'Brien, Limited, which trenching, surface sampling, and ping,
representative
sampling, at least two million tons of
pellets. deposit has recently been

most active
are

district.

group of 60

air¬

an¬

the company expects to increase
this to 100,000 tons by April 1957,

south of Leaf Bay in order to de¬

termine the methods of producing
iron concentrates at a profit. Plans

The

iron.

nual current iron concentrate pro¬
duction is about 40,000 tons, but

tion

northeast

The company es¬
probable reserve to
be between 15 arid 18 billion tons
timates

ores,

Company of Canada in

miles

530

of Quebec City.

a depth
study of concentration techniques origin oi inis dcli,
pellets can readily be obtained.
still has
In addition to the large and re- Las shown
that a commercially
Four main companies hold minDuring the summer of 1956,
markably high grade deposits of acceptable concentrate could be eral
exploration licenses and Oceanic Iron Ore had a number drilling.

particularly true of the iron

Corporation

Mining

extensive magnetite sand

deposit located at Natashquan on
the north shore of the St. Law¬

be¬

tween

SL°v irL" for^tfL ?«°knowna to

Aconic

few

Oceanic Iron Ore property.

unIJ; °f sedimentary and volcanic
rocks intruded by mafic sills and
^
lr,onl y1 e M,° u n.t
Wright-Mount Reed area to al-

belt

the

largest

searched for similar
material north of the holdings of
Hollinger North Shore Explora-

°c™rh ofThif

River

Payne

the

Bay is one of the best
potential harbors in
Ungava Bay. A favorable site for

tion Company. No high-grade ore
was found, but a huge tonnage of
Mining Corporation, Quebec Co- concentrating grade, iron-bearing
bait and Exploration, Limited, and material has been disclosed within
Cartier Mining Company, Limited, the sedimentary iron formation of
Bellechasse Mining Corporation
northern part of the Labrador
staked claims in the Mount Wright GeosyncJ.me
or
the Labrador
area in 1952. This was followed in
Trough. The Trough is a folded
subsequent

near

season.

Payne

been actively searching iron ores
io the area. These are Bellechasse

1984,

ores.

165 million tons.

shore

started

1956 field

panies have

Reed

companies

mining

total

south

was

Hart-Jaune River;
erection of a mining town in

many

in¬

Drilling of another iron range on

the

area,

con¬

based

areas

Esti¬

adjoining

magnetometer survey raise the

have good concentration charac- the
tcristics. If a large tonnage is
available, the probable iuture ac- the Mount B.eed aiea, and the
cessibility of these ores with the oiganization of docking, loading
improvement
of transportation and storage facilities at Sheltei
facilities (most of the deposits are Bay.
». . ,
located less than 100 miles from
District of Ungava Bay
i >
of which have been essential to the town of Chibougamau), could
Following
the
discovery
of di¬
the
open
hearth process which make
this area an important
rect shipping ore in the Schefferproduces 90% of the steel in North source of iron ore.
ville

to two major
problems now facing the United
States steel industry, namely the
rapid exhaustion of the "direct
shipping
ores"
of
the
Lake
Superior area and the sharp need
of steel scrap and lump ore, both

provide

material underly¬

.tonnages

Deposits in Quebec

long

material

complete drilling results and one

the north shore of the St.
River, to Mount Reed,

drift-covered

a distance of 187 miles; the erec¬
tion
of
a
hydroelectric
power

plant

million

iron-bearing

ing the principal iron band.

Lawrence

tassini district are low grade but

of lower grade

railway joining Shelter

275

indicated

grading approximately 32 % iron,
with an additional 85 million tons

ing up to 25 milliop tons of low
grade ore annually; the construc¬

of the Lake Mis-

ores

have
tons

grade pellets; the organization of
open pit mines capable of produc¬

deposits will
pay off.
Author states that large scale mining and feasible
beneficiation techniques provide answers to rapidly diminishing
I,-''.'
Lake Superior ores and steel scrap and lump ore.
Bergeron believes even the remote

The

mond

capacity of 10 million tons of high

produc¬

bringing these large, low-grade iron deposits into

tion, fflr.

with

area

Thursday, March 28, 1957

mapping, surveying and dia¬ Plans call for shipping 10 million
drilling. Most pf the drill- * tons annually from Hopes Ad¬
ing was done at the Morgan Range, vance Bay, starting between 1958
and 1960. The overall cost of the
a prominent range of hills extend¬
ing northwesterly some 12 miles project would be in the neighbor¬
from Morgan Lake about 20 miles hood of $100,000,000.
south of Payne Bay. Mapping and
Other Low Grade Iron Ore
drilling-of a part of this range

mond

Mount Reed

cal

did a great amount of dia¬
drilling, detailed geological
mapping, prospecting, and geo¬
physical surveying between 1951
and 1956.
Many deposits contain¬
ing a very large tonnage of ironbearing material grading approxi¬
mately 30% iron were outlined.
Cartier Mining has recently an¬
nounced its decision to bring its
deposits
into
production.
This
undertaking involves: the build¬
ing of a concentration plant in the
pany

Chronicle

The Commercial and Financial

£468)1

Godthaab, Greenland.

G. F. Faux Opens
QUEENS

VILLAGE,

Faux. is, conducting a
securities business from offices at
110-07 Francis Lewis Boulevard.
George : F.

Volume

185

Number 5624

The Commercial and Financial Chronicle

posit is in the far north and has

mate and

been

per

small way just over 10 years ago;
optioned by a major steel in fact at that time the Annual
company. These deposits are of Report of one oil company in¬
special, interest, as I believe it is* cluded "these" words:*' "The Com¬
inevitable ; that Western Canada pany has withdrawn almost com¬
will sooner or later have a steel pletely
from
Saskatchewan to;
concentrate its efforts on more
industry.
;
The -story
of
production
of promising areas." Just about " at
minerals in Saskatchewan illus¬ that same time the great discov¬
trates
our, progress.
The total ery Was made at Leduc in Alberta,
value of all minerals produced in This was the first great discovery

Oil and Mineral Progress
In Saskatchewan Province

■

<1469)

By J

H. BROCKELBANK*

Minister of Mineral Resources

-'•> "*

Province of Saskatchewan

Prospects
tax incentives, xteel industry formation, 1957
mineral production of $170 million as against $115 millionin 1956 and $1.5 million in 1932,
ability to supply onerthird
of

Canada's total oil needs in five

production by 1958-60,

are

most

industry.

1932

was

hence, and potash
described ljy( Mineral Resource
-

Canada

Last

The Province

formed
25

over

Saskatchewan

but it was
later at the end of

years

1905,

Saskatchewan

1930 when

received

claims

were

record

was

claims

were

lowing six

staked.

The

1936

highest
1,180

when

staked.

the

fol¬

from the Fed¬

from 1938 to 1943
inclusive, less than 100 claims per

eral

year

Govern¬
its

ment

main in
forest

do¬

lands,
s

years

recorded.

were

until 1948 that

not

was

again had over
1,000 claims recorded in one year.
we

and

From that time on, with one ex¬

ception,

n e r a

s ;

fell below 1,000

we never

sufficient

ini oil

It will not' be

long

until we will exceed the 100,000
barrels per day mark. 1 will not
be surprised if within 5 years Sas¬

katchewan is producing one-thirdof
Canada's total needs in oiL
Revenue to the Province from oil
and

gas
rentals, ? royalties and
bonuses in the year ending March.

31,
In

1951 was less than $250,000„
first nine months of the

the

fiscal

present

amounted to

year that revenue
$16^ million.

Potash

Development

Another very interesting mining

have is in potash*
million
acres are being explored:
These
was ovpr
82,000 barrels per day. potash deposits which extend all
In the year 1950 all Canada pro¬ the way across the Province were
duced less than 80,000 barrels per discovered in 1946. They are lo¬
Oil and Gas Rediscovery
7 day.
For the first 11 months of cated from 2,800 to 3.400 feet be¬
low the surface.
Sinking shafts
I would like to give you a look 1956 the total oil production in
at
our
mineral
activity in the Saskatchewan was 400,000 bar¬ through this depth of sedimentary
put together

and it will
until the total
value of our mineral production
will equal the value of our wheat
production, ,;lV
v -v
u ' :
not be many years

was

mofe" than* self

year

ducers

heavy

consumer of oil prod¬
On balance M1956 we :#ere

production.

of oil oh the Prairies since Turner

about

capita

ucts.

in 1956 Valley, which was many, " many
this value is.over $115 million— years before.
The Leduc discov¬
$68 million of which is for metals, ery Started exploration all over
In this year, 1957, we are fore¬ again in all Three Prairie Pro¬
casting a figure of $170 million— vinces. Now we have oyer 2,500
$90 million of
which - will be wells capable of producing oil and
metals.
Saskatchewan produces 150" wellsJ capable of producing
more wheat than all the rest of gas in Saskatchewan.
New pro¬

years

Mr. Brockelbank predicts a bright future for
the next twenty-five years.

million.

$l1/2

minister to illustrate Saskatchewan progress into a well bal¬
anced economy from its dependence on wheat—still its fore-

Province

our

long distances is

are

combigin at the rate of

development;

about three per day.

Last Novem¬
ber, Saskatchewan oil production

rels

rocks

the

present time JV2

southern

part

Province.

our

First in oil and natural gas—pro¬

•therefore,

our claims in any year. However, even, duction
period of his¬ these figures indicate that explo¬
in deal-, ration and prospecting was only
ing with these touching a tiny fraction of our
resources
in
whole pre-Cambrian
area.
The
Saskatchewan record of 1,180 claims recorded in.
1936 stood as an all-time record
p r a c.t i c ally

started

was

very

refinery

than total Saskatchewan

runs.

its mechanized

presents

but that is

Saskatchewan with

Continued

farms, its cold cli¬

problems,

many

being done.

We expect

page

tory

coincides with
life

the
P
H.

Brockelbank

r o s

Province

our

ectors

Develon-

and

Associa¬

e r s

tion.

we are

still

in the matter of preCambrian exploration and devel¬
opment.
Our
oldest
producing
very young

mine

until

and

few

years

ago

only producer, commenced a
years before the birth

our

until the year 1951 j when for the.
time - we
had
over ; 2,000

first

claims recorded,

claims

many

the

ber

claims

for

the

late start in

this

Saskatchewan.

reasons

field

first

The

and

probably the most important is a
geographical reason.
The most
southerly
point
of
the
90,000
square miles of our pre-Cambrian
about

area

Toronto.

miles

700

The

north

end

southern

pre-Cambrian area, which
extends nearly another 400 miles
north.
At the beginning ,of this
century railways passed through
large areas of the pre-Cambrian
Shield in other parts of Canada,

ing

prospecting
brian

over

ministration

Saskatchewan's

under

was

resources

Government

ad¬

the

could

Federal
be

not

ex-

pectedr that active promotional in¬
terest
in

our

evidence.

is not
all

mine

which

work

in the life of Canada.
!

Claim-Staking
Under

Rate

Federal

solved

and

about

were

years

later these claims

were con¬

verted into the Hudson

Bay Min¬

ing and Smelting Company mine.

of the boundary between

Manitoba

Saskatchewan

and

Showed this property to be partly
Province.

each

other flashes

1930, but

none

There

the pan

were

prior to

of them proved to

the

1931

first

Provincial

only 173 claims
pre-Cambrian
of Saskatchewan. Prospect¬

administration,
were

area

staked in the

low ebb for the
next two years, until interest be¬

ing continued at
gan to run

and

area

1934 to
1

*Aa

fore

in the four years, from

1937 inclusive, over 4,000

the

Mr.

25th. Annual

Brockelbank

be¬

the

Convention

Prospectors and Dovel-pers Association,
Toronto, Canada, March 5, 1957.

cliaim

mines j is

'j In the last

year:

mines

producing
number
production with the,

and

further

completion of the new Lorado
near Uranium City. Two new

Mill

base

metal

mines

million

two

copper

are

assured

ore
body of
Ronge will be
more
ore
is

when

proven

area.

ton

Lac La

produced

make

mill

The present

eco¬

nomic project.

Many other prop¬
erties
are
very
interesting and
are
receiving the attention they
.

All of this

objective from

the Steep Rock Range is

established annual production* of

activity has created

much

greater interest on the
part of Saskatchewan people. To
encourage this interest we have
a

been

studying the Income Tax
and
advocating
certain
changes, which would provide a

The

Hogarth

The conveyor belt,

has
of

11,000

plant.
foreground,

definite

tax

man

and

farmer

into

money

incentive

Saskatchewan

the

age

8.5 to 10 million tons of

daily

capacity
to 20,000 tons.
*

present

Laws

direct-shipping high-grade iron
ore

sustainable for

encour¬

business

put

than 100 years.

some

this exploration

and

development work. We have pub¬
lished

repcrt
for

Income Tax In¬

Canadian

*Including the output of directly operated

Mineral

Development by John G. McDon¬
ald of Toronto and some copies of
this report are available here at

mines and that

from

areas

under lease.

this Convention.

At the

high in the Athabasca

address

-number

uranium
assured

centives

be of value.

for
feet.

mond

jurisdiction

lems

5,000

oyer

deserve.

claims were staked in 1914 in the
Flin Flon area.
After many prob¬

A survey

Province

additional

subsequent

may prove

important,
had

the

—^

When

the

ore-gone,

photograph,

So much for claim staking, t but,;
all of you here know-that a"

production in the Flin Flon

its resources naturally this
area occupied
a much more im¬
portant position in the life of Sas¬
katchewan than it had occupied

the

.right,: extends

Uranium, Copper and Iron Ore

northland would be

got

upper

these

the

Erringtoii
of

out

pre-Cam-

our

area.

and

Under

The

and | conse¬
distribution jof

better

area.

while

tend for 10,OOP lineal feet.
i

base I metals

for

quently

Cambrian

Ox-

ore-zones

11,250 with a peak
18,000 claims recorded in

circumstances

years

this century had gone by before a

two

railway was within 100 miles of
the
southern
edge of our pre-

These

each

150,000 fept of dia¬
drilling done. Many shafts
were put down and underground,
work was done during the last-,
lew years.
As a result we have'

Saskatchewan

the last couple of-years
feeling of insecurity in the fu¬
ture of uranium mining and good
prices for base metals^ caused a
definite swing towards prospect¬

our

but in

lower,. foreground

pit and upper background, the "G" ore-body.

section of the Hogarth
t;

open

James Bay is still 200 miles south
of

recorded

the

year was over

1953.

two

Interest

year.

as.

a high point
during the last
four years, that is from 1953 to.
1956 inclusive, the average num¬

of over

at least

by this time and

couple of

are

recorded

uranium had reached

of this Association.

There

In 1952 twice

were

present time two inter¬

esting deposits of iron
ing

some

the

are attract¬
attention—one is located

Choiceland

Prince Albert.

area, east of
It has the disad¬

vantage of being under 2,000
of sedimentary rocks, but it
the advantage of being right
side the railway.. The other

STEEP ROCK IRON MINES LIMITED
PRODUCERS OF

HIGH GRADE OPEN HEARTH AND BLAST FURNACE ORES

feet

has
be¬

de¬

STEEP ROCK

(IN THE LAKE SUPERIOR AREA)

CANADA

The Commercial and Financial Chronicle

(1470)

for

were:

$20

Looking Forward Confidently

British Columbia

tually
To

time

speaker addressing your first
meeting in dealing with British
Columbia would
probably have
a

had 1931 in mind, and would have

preliminary
estimates of production for that
been forced to

Today we have the advan¬
of having final figures for

year.

tage
the

rely

1931 to 1955,
year 1956 must rely
liminary estimates.

but

years

the

Let

remove

for
pre¬

this point and

explain that I don't
to burden you with the
for 25 years.
We shall
with the aid of maps and some

and

withered

dur¬

suggest

then

Our

1951

boom

high

prices

zinc

and

graphs

skip
by

occasioned

for

the
very

sirability

the

output of the

price

while

grew

de¬

and

others

the

diminished.

and

is your 25th anni¬

Because this

increased

nma¬

in t value

relative

importance. Re¬
cently tungsten and iron have ac¬
than

for

half

substantially
"other

Sul¬

metals."

versary the period 1931-1956 is of phur and asbestos make
up the
graphs something of the mineral particular interest. We shall trace greater part of the value of in¬
production in British Columbia in the developments in British Co¬ dustrial -minerals, and the large
1931 and 1956, something of the lumbia with the help of a series of increase since 1947 is mainly at¬
scope
of the industry, and also graphs. Graph A (Fig. 1) repre¬ tributable to asbestos, of which
something of power and transpor¬ sents for the years 1931, 1939, production began in 1952. Increase
see

For the

1955 and 1956 the value of
mineral production. Graph B rep¬

resents the

have declined

1947,

tation facilities.

Prospectors and Devel¬

Association 1957 is the 25th
anniversary. In British Columbia
we
look upon 1957 as the 100th
anniversary of the discovery of

opers

quantities and Graph C

the prices, for gold, silver, copper,
lead, and zinc for those years.

We have

to call gold,

come

sil¬

the

has

bismuth, cadium, in¬
been established as a coal mining dium, and tin, recovered from silcentre in 1852.
The discovery of wer-lead-zinc ores, are members
placer gold timed so as to invite of the group "other metals" which
California's forty-niners and many also includes iron, mercury, and
others to engage in a new search tungsten. Graphs A, B, and C deal
the principal metals
for wealth, triggered the gold rush with
indi¬
of 1858.
The gold rush brought vidually, and Graph A also deals
values
of
"other
about very rapid exploration and with
metals,"
development of British Columbia, industrial minerals," "structural
leading
to
uniting
the^, wholq materials,"; and "fuels' as groups.

ues

earlier

ered

Nanaimo

and

had

copper,

"principal
antimony,

group

general.

Fuels

relative

import¬
declining
coal

recorded and in

was

added.

was

We had upsurges in

activity
the

directed

early

metals in

thirties,

Confederation

and

the Dominion

into

entry

Province

Canada in

1871.

1931,

Within

ual

These

nomic

minerals

greatest eco¬
importance of several dec¬

ades,

but structural materials in
the form of brick, building-stone,

sand,
had

gravel, and builders lime,
places for themselves

made

before

British

Columbia

entered

Confederation.
In

the

final

decade

century lode-mining
own

and

had

19th

the

into its

came

era

mining,

silver

metals

copper

low-grade
smelter

pioneer

building.

placer-mining
dled

away,

ore,

and

the

1920's

almost

dwin¬

recently.

the

last

had

about

become

and zinc
tial

holding its

had

the

products,

principal metal,

outclassed by lead which

third,

was

vy¬

Increasing Diversification

the

trend il¬

addition

the

mid-twenties, the provision begun
in 1929 for large-scale

use

of sul¬

phur at the Trail smelter, and by

increasing

recovery

by¬

product metals at the smelter.
*An address by Mr. Sargent before the
Annual Convention of the
Prospec¬

1947

lead

than

for

and

zinc

the
has

years

1955

contributed

representing

quantities

lead and zinc

have used

the

same

scale

000,000 pounds of metal to
cal

division;
100,000

000

50,-

oz.

verti¬

represented

and silver at 1,000,-

representing

unit

C),

division

scale

$10

gold, 10 cents
and

to the scale division. Simi¬

oz.

larly

gold

(Graph B)

cents

per

prices

per ounce of
a

for

ounce

silver,

pound for copper,

Developers Association, Toronto,
Canada, March 4, 1957.

leases

and

reconnaissance mapping,
Air

Air

Photos

and

photographs

Maps

were

.■?

available

for' limited parts of British Co¬
lumbia 25 years ago. Today verti¬

that the
Geological Survey of Canada has
been applying so successfully in
the Territories and Arctic

applied

was

in a
British

northern:

each year the cov¬
is being improved by filling
in gaps and by re-photographing
erage

for

greater

detail

for

better

quality.
The
maps

availability of topographic
has improved tremendously
past 25 years.
For many

the

Power

You

the

inch

from

one

available.

are

mile
For

the

whole province National
Topographic maps are available at
eight miles to the inch.
Air
of

photography

helicopters

surveys

the

data

maps

time

formerly
BRITISH

A for

and

the

speed

have made it

provide
new

use

ground

necessary

required.

for
the

Conse¬

d.v.t.on

something

capacity has increased
horsepower in 1932

700,000

2,400,000 horsepower

pres¬

Naturally, much of this energy
converted to the major popula¬

tion

for

centers

domestic

industrial

However,

use.

lurgical operations, and the com¬
munities in which the mining and

metallurgical
ried

industries

are

Under
tion

the

heading Transporta¬

should

something

about

roads,

railroad,

METAL PRICES

AND

rtpr.scntt $ 10.000.0C0.00

Each stole division represents- Gold, 100,000 oi. Silver. 1,000,000 ox. Copper.Lead.Zinc. 50.000,000 lbs.
Each scolt division represents - Gold.$10.00 per ox. Silver. 10* per oi. Copper.Leo d.Zinc. 10 * per lb.

tre¬

represent¬

recorded,

the

number

recorded, the

num¬

issued,

the petroleum and natural
section, the area under per¬
mit, license or lease and the foot¬
age drilled.
The petroleum and
natural

gas graphs begin at the
1947, because the activities
began that year.

year

readily discern the

can

pre¬

liminary phase of the gold boom
with
the sharp increase
in the
number

licenses

issued

and

Figure I

LODE AND PLACER
-

claims and

leases recorded. How¬

(f)
ch

r»>
at

ion-

**)
oi

r*>

®<y»

—

(Vi

(*>

MINERALS
iA

w
Xt

4f>

ro
Oi

*A
Oi

should note that most of

increase,

apparent in the
production statistics from 1934 to
so

1942,

was

from

been

held

for

claims

that

had

years

and

mainly from mines that had

rec¬

ords

this
of

many

previous | production.
In
substantial quantities

period

found

were

ore

southern

British

Columbia,
the
Sheep
Creek
and
Hedley camps were
revived,
Bridge
River
became
the
principal
producing
area.
Wells and Tulsequah became im¬
portant producing centres and the
high price for gold helped to
maintain

production
Canal

from

the

PETROLEUM

AND

NATURAL

GAS

450.OOO

400.000

camp.

Copper, Oil and Gas Boom
300.000

1931,
about

note

the

quantity

that

gold

copper

about

lb., lead something

200,000,000

lb.,

and

than

zinc about

200,000,000 lb., and frorq Graph C
it is apparent that

recordings

little

and

the

war

was

30,000,-

Claim
show

160,000 oz., silver about 7,-

500,000 oz.,
000

Graph

the unit prices

said

air routes,

second

our

ber of free miners' licenses

1956

Production

car¬

on.

350.000

Gold

and

least

40% is used by mining and metal¬

COLUMBIA MINERAL PRODUCTION

.ndmduol .«*•»> toch icolt

Energy

ent.

possible to

fraction

and

heard

have

generator

scales

hydro-electric

from

topographic

of
developments
in British Columbia, and of the
building of pipelines for moving
oil and gas.
Total hydro-electric
the

maps

Islands,
area

Columbia

1956.

parts of British Columbia, amount¬
ing to nearly half the total area,
four miles to the inch to

large

have

years

(Fig. 2)

of lode claims

Portland

lead, and zinc.

technique of

ing: the number of placer claims

the

25th

tors and

graphs

value.

list of products, of
gypsum in the

the

somewhat

equivalent

becoming in¬

creasingly diversified,
lustrated

three

ever, we

substan¬

for first place.

was

similarly

1956

(Graph

industry

scale

set

from 29.8% and 31.2% of the total

The

own, copper

become of

copper

are

contributed

production

importance being not greatly

ing with

of products.

groups

rectangle, thus for that year, gold
made up a little more than a third
of the total value of all mineral

was

individ¬

in¬

war

readily apparent from

gas

copper,

lode-gold

rectangles the

represent

been

gratifying rate. The
making use of fixed

mendous

and in

lead

mining

had

bars

1956.

lode-

and

copper-gold

years

and

geological

available has

are

creasing at

has

consequence

1941-43, toward lead and

also had

Height is their significant dimen¬
sion.
For 1939, the bar for gold
is slightly higher than the wide

and

production,

wide

bars

for the

1955

mapping
a

which

zinc in the late forties, and toward

times that of the wide rectangles.

gold

1947,

these

narrower

Coal and placer gold continued to
the

production

1939,

maps

for

area

wing aircraft and of heliconters in

and Transportation.

ergy,

increased,

the

The amount of

maps.

devoted

gold

toward

mineral

mainland

and

1866

Some of these changes are

discussed under the headings: Air
Photos and Maps, Power and En¬

been

exploration

toward

govern¬

that

topographic
effort

Island

one

British
in

quickly than in the past,
iGeological mapping has been
facilitated by the
availability of

they hold im¬
portant promise for the future

couver

under

area

occurred

much

but

graph

colonies

period.

industry

have

detailed map¬
an area the

satisfied

val¬

1858, union of the Van¬

ment

Columbia

now

1956 oil

individual

still too small to show

are

such

Their

activity iq exploration
The large rectangles in Graph A for petroleum and natural gas.
Some of these facts are mpre
represent the total value of all

mainland

mineral

can

output, offset in part by increas¬
ing price. In 1955 production of
gas

Coal had been discov¬

River.

men

ver,

materials

fairly

reflecting

ance,

lead, and zinc, the
metals."
The metals,

placer gold at the mouth of Nicoa-

structural

been

changes in min¬
eral production and in mining ac¬
tivity in the past 25 years. Many
other changes having a very im¬
portant bearing on all phases of

ping is required for
need

We have traced

the

quently when

Columbia and

increasing

"structural

and

have

counted

propose

statistics

minerals,"

terials"

appropriate

Thursday, March 28, 1057

copper,

whose

metal

one

the

lead and cal air photographs are available
in
value for almost the whole of British

silver,

indicates

apparent

conditions

represented

Graph

ily

curves.

mining silver-

rather than quantity of metal,
v

and natural gas activity are read¬

and production was

ores

booming.

was

that

favorable for

lead, and total value of mineral
products,
zinc, it is interesting to recall that as we
progress from 1939 to 1956.
lode-gold mining was already be¬ We have noted
the
increasing
ing
revived
before
base-metal value of lead and zinc and the
and silver prices began to tumble
change in the relative importance
in 1929.
Consequently, early in of the different
metals, gold, lead,
the hungry thirties, lode-gold-pro¬
and zinc.
The graph also shows
duction increased rapidly, placerthat
"other
metals," "industrial
mining also expanded making its
dominated

contribution

worries at

any

Columbia

British

ac¬

cents

extent

the thirties

graphs

the mineral industry

Although

1932,

three

Graph A indi¬
gold boom that flowered

lead-zinc

and adequate rates there should be a long

the year

than

some

were

period ahead for large and diversified mineral production.
this

small amount,

very

ing World War II. In 1939, not
quite the peak year, gold ex¬
ceeded 500,000 oz. in quantity and
$21,000,000 in value.
The 1947

pipe lines, and extensive air-rail-road-shipping changes have
aided mining, metallurgical operations, and the communities
in which those industries are carried on. Mr. Sargent believes

pound, and for lead

Jess

cates the

Leading mineralogist reviews highly diversified mineral re¬
sources and prospecting techniques in British
Columbia, and
the extent to which developing hydro-electric power, oil-gas

that with insight

than

pound.

Department of Mines
■

and zinc

Branch

little

for silver less than
ounce, for copper say

eight cents

SARGENT*

Chief, Mineralogical

gold

ounce,

30 cents

At British Colnmbia Resources
By HARTLEY

....

boom,

however,

records

show

the

licenses
metals

production

production of

cury and tungsten

increasing

FOOTAGE DRILLED
250.000

200.000

mer¬

rap¬

G
fSO.OOO

idly

from a negligible value in
1939, to more than $5,000,000 in
1943, only to be cut off virtually
completely in 1944.
The copper
boom

1956

and

the

petroleum

100.000

50.000

vri

*A
Oi

if)
0»

Volume

Number 5624

185

The Commercial and Financial Chronicle

shipping routes, and pipelines, and
about the direct use of aircraft
/

...

"*in-/exploration.

J.''

entiate those existing in 1931 from

last

bring

ways

thrir main

construction

the

■/construction

roads

re¬

high-

modern
However the

them

highway standards.

extensive

years

changes have been made to
road
system, including the

into

areas

•/previously
not- accessible
will
i undoubtedly be of greater interest
to -the. exploration-minded.
The
.

roads

which

should

rdrawn your attention (see Fig. 3)
>

C-Tare» *;•' •&>'■£v:
*
-

George

Fort St. James to ManSons

some

practice

chartering

deliver

(5)

.«

HlfOfltOllOH v6t)l6F
B

The

Sessions

the

points

.are

coast

held

A. Parcel

sizing safe packaging, - accurate
rating, time-saving procedures in
mailing and •receipting;
special
delivery and special handling.
B.

ices:

overcome /the difficulties

where

caused ?

gram,

JU.
°. dat?
most effective ^olution found;

served less fre-.^

and

any

desiring

one

hfiiie

oil,

exploration and production. The
Highway has/played
a

Alaska

A.
mail:

pipeline

gas.
The Fort St. James-Mansons
Landing lateral made it possible
.to bring the Pinchi Lake mercury

has
f

than

been, hauled

gas

Railroad

4).

and

Air

extensions

The

Glfeat

difference

Eastern

loops

the

cost

performs

Kiti-

similar service for

area.

showing air routes
does not need to differ¬

map

(Fig. 5)

ance

of delays

adequate

Mailing: avoid¬

and losses through

understanding

quirements.

re¬

/ ;

are',
on'

Columbia for more than '
the

Early in

years.

it.

day

extend

the
to

and

gas

serve

Oil

Okanagan

Trad

last

two

yearSi

and^

fjnd sjx

new

regular production add-

ing $10 million to the annual,
fuels.
The crude oil:
vaiue. four new industrial minpipeline needs refining, -erals adding $8 million, and oil;,
consequently
the supply comes and gas which although so-far
the

than the

line.

near2s rfc/'1/
* of small
^nearest point in the pipe- promise
ready for

Natural gas, being

its availability at any point
along the pipeline may lead to
very interesting developments.
use,

moving

branch line from Terrace to

Our

company mailing practices with
postal operations to obtain sub-

and refunds.

C. International

convenient

railway,

Vancouver

-to

and

Nelson.

the

freight into and out from central
and northeastern British ColumIbia:
The Canadian National

types of air-

things change the more they
saine:"
Mining has gone
100

valley

(see

;

Prospecting Techniques

smaller

redemption

to/he International - became apparent that British Cofor distribution;in. the ;lu]hbia possessed
highly diversinorthwestern
United
States.
A fied mineral resources.
Comparbranch line taking oft near Kam-. in
the ,931 list wlth that of the

have made and will make a great

both

Columbia and

-extending the northern terpainus
ito Prince George, and the further
'extension
now
being
made
to
/Dawson Creek and Fort St. John,

mat

[loss by under¬

standing procedures dealing with

end toa southwestern
neighboring area
in. jn Hi'itish
'British

^l'{

with- the
former terminus at Squamish, and

;

Stamped

Alberta

have

railroads

two

•connecting

from northeastern British Colum-; the

over

Routes

importance

been made

Pacific

arid

Boundary

Changes

Certified

';->■*

■

stock

Postage

Our

item

final

relates

trans-

portation and techniques of prospecting.

thirds

has

limited

surveys.

nature of
Columbia
airborne geophysical

The

two

rugged

British

Northeastern

British

have

annual value hold great;
f0l. ihe future.
Mines

been
have

_onps

British

exhausted,
been

new'

but

Southern

found.

Columbia

emains

ca-

pable of maintaining the output of
25 years ago, and northern British
Columbia

Twenty-five
and

advancing rapidly.
of production

years

exploration

have

certainly

made changes, but they leaves us
able
to

look

long

forward

period

diversified
provided
with

confidently

large

mineral

and

production,

exploration

insight and at

carried

adequate

rates.

Motion Equipment
Trust Ctfs. Offered
Halsey,
associates

Stuart

Co.

March

Inc.

and

offered

$1,050,000
of
Monon
Railroad
4J/4% serial equipment trust cer¬
tificates, maturing annually Nov.
15, 1957 to 1971, inclusive.
The

certificates

yield from

ing

maturity.

the

4.25%, accord¬
Issuance

sale of the certificates
to

priced

are

and

subject

authorization, of the

Inter¬

MORE THAN

For

Commerce Commission.

state

issue

The

174 box

cars

estimated to cost $1,-

315,200.
the

offering

prich & Co.; Freeman & Co.; and
Hutchinson

complete
confidential
information

are—

Merle-Smith; R. W. Press-

McMaster

ONE BILLION
DOLLARS

Associates in
Dick &

secured

Co.

Capital Investment

WRITE

in 1956

TODAY

Forms Julian Francis & Co.

GOVERNMENT

(Special to The Financial Chronicle)

BEVERLY
Julian

Fleg

HILLS,
is

Calif.—
engaging in a

securities business from
291

South

under

the

name

Julian

Francis & Co. Mr. Fleg was previ¬

ously
fifurr6

with

Company.

Daniel

of the

PROVINCE

offices at

Cienega Boulevard

firm

Weston

BRITISH

advantages

/
.r
;
/
.
The natural
Looks Forward Confidently
r
(Westcoast Trans-..
0ur tltle is Suggested by the '
Company. Limited) .* nowi good
Quebec
ad
,.the
'

under construction is to bring gas.

that road.

-Fig.

made

craft for reconnaissance geological.

trunk line

mission

i950.

$14,000,000

market

and

p.m.

in greater Vancouver.

50,000 tons of asbestos

Oil"keen

plies refineries at Kamloops and.

Production started in 1952, and to

valued

ish Columbia.via Yellowhead Pass jobservatio
ns,: and it is
expected
bringing oil from Alberta to mar- .that much more use win be madekets
in
British
Columbia
and ,in the Coast
Mountains areajn the;
northwestern Washington. It supnext f
,
'
•

aged further prospecting in that
area/ leading to the discovery of

some

(Trans Mountain

Vne, 9om.pa-^y,l en£ers Brit-

property into large production in
a
very short time.
The Cassiar
road, built to support a dredging
operation on
Upper McDame
Creek, in 1947 and 1948, encour¬

date

in transporting prospec-

Registered

duction of postage

the Cassiar Asbestos mine in

^October 1953, -'copters;

Envelopes: purchase and care. Re¬

>bove-mentioned postal office.
Details of the

<l«>i Of" use"has"

tion for petroleum and natural

;

"claim"

£,-•■/

description and

serv¬

coverage;

2:30 to 5:00

of each service.

be obtained

inservicethif'leaf art^mportant'!?rs', g,eol?gists' ,2nd scouts' P?r"
Tuesday: 2:30 to 5:00 p.m.
the distribution' of 'fuel,
C0"um Wa.'Vgwd^elTof Kte. A; Coordination of office and
oil

large part in the postwar explora¬

in service since

fullest

attend is requestedio indicate the
. .
'I

formwhich

C.O.D.

and

securing

Thursday:

-Landing lateral.- •
:l*///.v■.>// quently than formerly. . For this
/
K 1° . weeks)-, on a
;/ ;
1(6) Cassiar road and its exten- reduced service ' regular service-•has' been'to ™°ve 'the equipment ^SP®C?
winter while the muskegs;
can
either
•; sion to Dease Lake.
?' by aircraft to. a. point 20 to*50
miles away is only partial com-, and-soft ground -are thoroughly in person or by writing to the
Two of them cross the Rocky
'
-Mountains, two cross the Coast pensation.
past few years a great
.
'
Mountains, and two are laterals,
/,
been
program are as
Pipelines (See Fig. 6).one for-jjxed 'wing aircraft and of heli- .follows:
-v
These roads have helped both
>,
f■

; >./ -:•.*

fIPe,^lS

Insurance

■

the accompanying pro-

p.m.

post services: empha¬

initiating Y"tracer"
and
Tuesday,- actions for fast results.'

every

and

;

Description of the classes of

Wednesday: 2:30 to 5:00

°J^ equipment
a serious - m
j ■
d Thursdav
jblem. - Swamp Juggles .and .Wednesday and Thursday, as

rail and boat Services.

notable

are

time

mail; an explanation of their use
in fulfilling your particular busi¬
ness mailing needs efficiently and
economically.

an.

aircraft,

use

savings

money.

prospector

trucks, and buses has resulted in
the reduction or., .abandonment of '

Rupert

■■

■

stantial

Dac# MCSam Aman*
IU51 (J Iffv 6 UpcHS

■■■

in connection with exploration for

commonplaces,

(2) John Hart Highway.

some

the

riorated.

Prince

from

oil and gas. An increasing amount Fftr Mailing PrOCGOlirS
°f.{the airborne magnetometer
O :
and his gear at a remote lake desurveying is being done in more
Robert H. Schaffer has opened
veloped later in British Columbia' mountainous .parts bi British Co- a Postal Information Center at
than
it
did
in
other
parts of" lumbia using fixed wing aircraft, the General Post Office, 8th Ave.
Canada. We stuck to our horses and a; start is being made using and 33rd St., New York, which
for
quite a time, but the hay helicopters- in ^terrain-considered representatives of businesses in
burners are now aimost, entirely t°Q rugged for effective work with the'City may attend in order to
replaced by vehicles powered by fixed wing aircraft, In northeast-, bec&me fully acquainted with the
internal combustion engines.
erh British Columbia seismic sur- correct procedure to be employed
'.'So far the changes hoted have'veys ^ave been used extensively by the firm's mailing departments,
been
improvements
however and effectlvely in exploration for This is achieved through the use
some
former services have dete-. Pefr°ieuhi and natural gas. In the-of' films and related'visual data,
The

aircraft

' ';
£V? (4) Williams Lake-Bella Cpola.
to

one

now

(1) Alaska Highway.*

(3) Completion Prince

r
*

v-;/ s ///

suffer

not

this topographic limitation, and a

the

■''?

Columbia, does,

past

for the reason that virtually great deal of airborne magnetomexisted in 1931r Airi travel [ eter'work has 'been done there

years
none

Developments

Road

the

established3 in

those

(1471)

COLUMBIA

Parliament Buildings

Victoria, B. C.

(1472)

The Commercial and financial Chronicle

125 million

Recent

Coppei Developments
the Chibtmgamaa District

Dually.,

taking place without rail facilities.

Quebec's

Mr. Assad
The

It is unique in

success.

it is the first camp

that

these properties will be exploited.
The present operators, with set

can

become

milling

important

That it is

rate

the

well

which

have

Robert

last

address

sented

March

will

way

esti¬

only

the
pur¬

To these estimates

which

milling

apply the

states

rate

that

mining of half
day.

per

vertical

In this way it can

estimated

mines

1957.

that

these

potential

produce approximately

can

„

with

mau

gion.

the

Authorized

Quebec

5,000,000 Shares

value

par

,*.*

Issued, 4,000,007
Working Capital, $1,600,000

ARC ADIA

interest

President

Managing
Allen

half

Directors

Port Credit,

over

and

one

Asbestos,

experienced

record

proven

Eastern

the

standing

Company

Metals,

Credit,

Ont.

Murray Anderson,
Corp. Sec.
Toronto, Ont.

H. Smith,
Metallurgical Engineer

Toronto,

Ont.

Bernard

Boston,

estimate,
on

Shore

raise

and

1 he

ft.

267

650-ft.
ore.

grade

ft.

the

four

zones,

the

1,000-ft.

lower

levels

the

was

became
an

level Ss

level.

feet apart with

now

ore

drifting

raise

800-ft.

from

level

made

was

level.

and

Because

the

reached

with

has

persis¬

completed
now

Width

faces

crosscut

Ontario

p-ooerty

and at

ore

been

level

two

ore

the

47 ft. in

this

the

estimated

available

29
are

40 ft.

Hydro

whereby

commencim

advance payment of $37,500 has

acteristics of the mineral
deposits
in the anorthosite belt followed

view.

Nov.

tests
are

property

Director

Edinburgh, Scotland

are

representative

highly

Underground

development

stage

that

Robinson

and

pared

for

and

been made.

bulk

results

samples

from

Although many of today's proand
potential
producers
prospects

from

mau

has

second

Rosen

zones

reached

such

been

sited

has

with

quotations

Hogarth,

Cooksville,
General

by
at

being

pre¬

ment

Copper

operation

Mines

1952

953

shaft

some 30

after

1937

production

and

started

sinking

miles south of

mau.

ChibougaMerrill Island
Mining Coi*p.

sank

350-foot

shaft

their

ore zones in 1953. leased
part of their holdings to
Campbell
Chibougamau
Mines
and
then

stopped operations until 1955.
Regional

137

Ont.

Geological Setting

Temiscamian
at

sub-province

the east end of a "greenbelt"
which is truncated,
eight miles east of Lake

some

Chibougamau,

greenstone

Mine

Manager

volcanic

Office—Worthington, Ontario

lined

ore

zone

copper.

belt,

and

drilling

area

which
to

The

com-

subordinate

from

anorthosite

gabbros

geological

form

feature

and take the form of

shaped
axis

intrusive

with

of
a

the
the.

canoe-

the

long

trending northeast.

Granitic
plugs and batholiths
intrude these rocks. A significant
occurs

and

along the axial

the
of

5 million tons

rinvinrt

®orts

are

*t,n

that

state

pxtensioils at depth

being

ore
con-

Chibougamau

Explorers

production

la^

year

Ltd.
February

rate

rocks,
Series,

oniy.

south

the

Reserves

Mines Ltd
as over

5(^

°*

Dores Lake

with

favorable

its

initial

An active

aS°-

continued

dur-

X year and at the

Pres"

program

ent tlme s aIt sinkin« is in

Pro2"

taSMT

ern part of the Pr°Perty> and a
third zone is being exPlored about
4,000 feet to the northeast. Definite tonnage values have not as
yet
been

determined, but reports in-

dicate
be

that

large tonnage
grading about

outlined

Copper
ago were given

year

214 million

tons averaging

increase

1954.

tons

for

Recent
that

cate

reserves

million

each

about

developments indihave increased

reserves

c]iff

one

since

year

Copper

and

occur

mainly

down-faulted blocks.The older

may

Xin

considerably

with
continuity down

1,500-foot
Secondly,

horizon
a

new

depth
to

the

indicated.

and

important

zone

about

one-half

area

the

mile

property
of * the

east

main shaft. Underground exploration is in the process of determin-

ing the exact nature and potential
of this new body.
Production

mine, which

early

the

Opemiska

curtailed by fire
November of last year,

increased

shortly but at

mill

rate

1,400

rnnnpr

Corp.

Min^
fnl-

ont

1955

whioh

N0RFSX
Developing
in

the

Gouin Penin-

TTnHm-o'rriiin/i

hL bLn

nr*

in DTbtoss for

,aonins-

in^

,nL

over

zone and the Royran-Machin
on tne east side or
Pores ^ake are similar in size and

pach containing
tons/vertical

a reported

foot

grading

between 1.5 /o and 1.8% copper.
Royran-Eaton; Bay zone on
east s^dp
Gouin Peninsula

The

is the most important zone and is
sa*d to contain some 4,500
tons/vertical foot grading between

2% and 3% c°PPerThe concentrator will be erected
Machin Point. The capacity of

this
upon

mill
but

has
one

not

been

with

decided

initial

OILS

MINES

Werner-Tigar

Mining Division of northwestern Ontario. Following
large scale surface diamond drilling program, un¬

derground development is

now

levels, at 250 and 375 feet.
high grade Nickel-Copper
and continued

proceeding

two

Substantial tonnages of
ore

being developed,

are

rapid expansion of the

anticipated.

ore

picture is

por¬

Listed

east

—

The

Toronto

Stock

Exchange

N0RPAX OILS i MINES LIMITED

330

Bay Street

Toronto, Ontario

iso¬

within

Thl6
to be

volcanic, sedimentary

advertiewnent
construed

a«

appears
an

for

sfx
ra

f~oint _zope

outstanding Nickel-Copper property
Lake section of the Kenora

onewhich is lo-

was

will be resumed

year

drilling

h Macfiin Point

body has been located in the

Perry

f c

Mining

R0vran

DjarnonJ

tential of the mine has increased
beyond this. Two main fea-

good

asset

lowed bv the sinking of two shafts

even

and

Chibaugamau

Consolidated
N

Ltd

iato m

widens

by another million tons during the
last year while the indicated po-

tures have determined this
growth. In the first place, the No.
3 or main ore zone in the mine

Rand

Mi~ ^ Ltd! wasXrmed

anorthosite

unconformably overlie
remnants

ex-

ouu ieet upiiri, occur in the south—

Opemiska

4.08% copper. This represented

series of coarse clastic
called
the
Chibougamau

other rocks and

lated

re¬

sedi¬

rocks,
serpentinite
to

Chibougamau

inn

intermediate

are
the oldest group of
intrusives and occur
essentially as
sill-like bodies which are in
part
related to, and in part
younger
than, the volcanic rocks.

and

over'2

^shaft hLteen'd^ene^ lr°om

from ultrabasics to
granite.
Basic
to
intermediate

varying
diorite,

the

in* the

ofin

„

Mines.tended

copper

amounteri to

which

Chibougamau Jaculet Mines

t\ it *

Chibougamau

X-

ported to contain about 1,850
tons/vertical foot averaging
2.38%

mentary rocks has been invaded
by extensive amounts of a large
variety of intrusives, ranging

all

CrLk nro^rtv drilhn^ tnT
l£L«!5
T.hf
X
lowing
at tke head °f the bay, has out-

,X:'sn "X/ /XXXh °XX 20ne northward
al"
producer ta Gu^bw
dis™very a year

A young

Company's securities are listed on the Toronto
Stock Exchange and the
Canadian Stock Exchange.

faults

body.

Kilpatrick

This advertisement
appears for purposes of information

basic

boundaries

Wellington St. West, Toronto

the

near

Campbell

ore

Basically, the region lies within

tion

The

re-

the

mass

Executive Office

Jr.

and
reports
indicate
^
possible tonnage of over 1%
million tons averaging 1.6%
cop-

copper.

rate of 400 tons/day. Exploration and development of the
Campbell Chibougamau property
resulted in production at the rate
of
1,700 tons/day of mid-1955

permanent

hoist, compressor building, and
The Company has under consideration a treat¬
plant that would handle upwartte of
1,000 tons a day.

de.Watered

Developments

tons/day.

development

late

ad¬

between

Secretary-Treasurer
William

the

could be mined.

area
now

shaft

1950, there were at that
deposits outlined that

main

bunkhouse.
Assistant

when

Quebec
Department
of
Mines
completed the road to Chibouga-

concentra¬

satisfactory.

vanced

the

K.C.V.O.

tests

continuing

commonly

Producers

ducers

time

available

is hot yet

are

shears

and

northeast-trending

Recent

(a)

known

The
zone

Campbell Chibougamau Mines
has explored two
properties which

(2)

by a survey of exploration developments in the various sectors of
the camp will complete the re-

Metallurgical
the
tion

Stevenson

work

the 500-ft.

report

1, and

J. Dumaresq Smith
Toronto, Ont.

Edward

includes

length of 500 feet.
tonnage along this

s-Dores

along Dores Lake and in the
Opemiska Mine area where, in
both
recinns
thev are
both
the
regions, they
are
the oreore
bearing structures.

pro¬

potential producers.
of the general char-

outline

Bouzan prop-

known.

Chibougamau,?' I

^concerning both the

ducers

posed

ore

Agreement

Director

which

basis

improvement

power

Sir

the

1.5%

to the
depth of 1,700 ft. at the nearby
Worthington mine of the International Nickel
Co., possible
ore
is estimated at another
2,500,000 tons by Simard and
Knight, consulting geologists.

Mass.

tonnage
to
2,500,000 tons averaging
nickel-copper plus precious metals.

only

last

Director

intensified

proven

combined
The

tence

Director

•

de-

gneisses regarded as
belonging to
the Grenville
sub-province. This

faults

occur

first, to outline the re¬
geology and then to give

details

the

underground development and
diamond drilling, the
Company has increased the indicated

Van

Developments

result

enters the
a

and

consists

major

re-

stone

and

Secretary-Treasurer

St. John

important properties are held in five leading
mining areas, work for the present is
being concentrated
on two adjoining
Sudbury properties, one ot which borders
the Worthington Mine ot International
Nickel.
a

fault,

a r r o w

lies

now regarded as
being future
(3) the Tachee
producers. At the Cedar
along the east side of ertv an Pvjct;n<r chaff Bay prophac
h«in
Chibougamau
The second

fault

propose

gional

out¬

Lake

zone

fault

Lake
set

into

named, from
the Gwillim

(1)

east,

ore

dip

vertical depth of 750
feet and at the 1,000-foot horizon
the ore zone has a
possible strike

ueCOnd these
!uendint; northwest to west a"d

,ye,ar

discussion of recent

velopments

have

position.

the MacKenzie N

Lake

Eastern

attain

of¬

successes

west

are

Lake-Wacomchi

Lake

indicated

the

extension of the
Copper Rand-Eaton Bay ore zone,

consists

set

THOUGH

Roy H. Thompson, Publisher

Lt.-Col.

■

multi-

first

of which

divided

may

The

'to

.shaft

new

and

Vice-President and Director

■■',}/•

along

northeast-trending faults,

three

line

Explorers
in 1952 on
their gold-copper
property located

mine-making.

shortly

branch

Lake

5 '

of major

Potential Producers

ore

and

while

The Bouzan Mines

erty

sets.

No. 1 shaft

deepened- f*pm 1;100

feet

being put down^to. the ;2,(KK)rfoot ?
horizon on the Perry zone".
%

anticline

In this

began

Robertson

Mining Engineer
Toronto, Ont.

,■

promising,

DIRECTORSHIP,

enabled

Port

Smelters, Quebec Nickel, Ascot Metals)

Vice-President and Director
Andrew

>./ (

CAPITAL

with

(United

ont,

:■

2,000

The

two

Rail faclli-

when hydroelectric
power became
available. Chibougamau

the

millions.

ficers

Rosen

-NICKEL,

EXPERT

★

and

Director

development

WORKING

★

Officers and

under

Mining Companies Act.

Liability*

Incorporated

CAPITALIZATION

LIMITED

tons/day. The main,
is- being

structure

Thursday, March 28, 1957

in-

spread
is

sumed

(No Personal

the

clined at 50 degrees to 70 degrees,

railway line will linke A
Chibouga-

initial

CORPORATION

that

plunging northeast with limbs

near Senneterre along
kt
n
N.
R.
transcontinetal

Within

Opemiska

ARCADIA NICKEL

are

Faulting in the region is wide-

district

available

indicate

may

represented is that of

ap-

Access

190-mile

r
C.

the

repre¬

by the tonnage contained

the

foot

Mr.

low

and

originating
route.

were

Assad before the
25th Annual Convention of the Prospec¬
tors and Developers Association, Toronto.
Canada,

has been

ore,

thumb

modest

production.

and

reserves, one can

year

Assuming that the development
"An

definite

ore

rule

Chibougamau
produced 21.5% of Quebec's total
copper

known

included

posely chosen.

Assad

second, by the
that

which

been

found, and
fact

well

established

mate,

deposits

new

fairly

result of surface drilling. In some
cases, tonnage figures are not yet

demonstrated

first,

rocks..

dips
north,
while
the
southern limb dips southeast. This.

with St. Felicien at

area

Review

able

success

can

important properties have not yet
be^n determined, but in most
cases the
tonnage and grade avail¬

surprising

intrusive

the northwestern limb of the in-

An all-weather gravel road

ties

Milling rates for the other five

railway facili¬

and

the head of this lake.

year.

ducer without

ties.

rates,

produce some
77.5 million pounds of copper each

copper pro¬

make a rough estimate
potential of the district
two or three years, when

within

the

interior

of in¬

output

Chibougamau

John

the

prove

area

located

feasible, it may

prove

terest

surprising
that

can

basic

trusive

located in northern Quebec, some
130 miles northwest of Lake St.

plans indicated by four of the im¬
portant
mining
concerns
will

and

pounds of
This sum, when

copper

Location

links the

Chibougamau
camp
pride
in
uniqueness

take

million

proximately 30% of the total production from all Canadian mines,

producers, exploratory
developments, and concludes Chibougamau's importance as a
copper producing area is assured.
5

The

200

some

compared with present production
figures, represents over 80% of

describes the producers and potential

Introduction

and

an-

.X-

•:

•

Quebec mining official details recent development in the Chibougamau area where important copper production, estimated
to produce 200 million pounds of copper annually in two to
three years, is

copper each year.

Quebec Department oi Mines

^folded, steeply inclined and have'
this means a general easterly trend.
Comthat within
two
or
three years positional
banding
within,„ the
Chibougamau may produce a total anorthosite-gabbro indicate that

By J. ROBERT ASSAD*
.

pounds of copper

,V:/. summary then,

information

offer to purcbase

purposes

sell

only and is

securities of

any

not

kind.

ca-

Volume

pacity
has

185

.'Number 5624

of 5,000

been

;

-Copper Rand is presently sinking a third shaft at the northern

tip

Merrill

ore

Island

drilled

zone

end

lake

Chibougamau. Series

Ltd.,

years

Merrill

Island

its

Mining

shaft

350

1,000 feet during the past year to
explore at depth the possibilities
of increasing the previously determined

copper.

sinking
the

ress

property

past

year

ground

examination

reported

zone

million

one

.107

contain

tons

and

copper

ore

ace

sector

found

are

and

an-

Extensions

being

are

value

zone

Net

DrODertv

north

The

occurs

0re

granite

and

stand

brecciated

present

estimates

nearly half million
grading 2J/2% copper.

tons

available

for

The

orthosite

both sides of the

fault.

The

width

from

jor

few

hundred

those

19,

lew

Point

Cedar

rowed

*****

Joglcal Surv<

Mineral

—

serpentinized

dunite.

Extensive

surface stripping
and
sampling followed the drilling.

while

Clnbougamau

ing shears contain all the import-

ant

ore

order

and

zones

classed

eroun

!f;AvS
l
p y itic
shear

but iess

rigid, control

zation.

This

|jie

second,

mmerali-

Chibougamau

Goldfields

There

two

are

deposits

represented
Merrill

mainland

Island,

and

just

occurs

brecciated

sheared

the

Island

those

north

Vol. 77

uct

(1956)

market

anorthosite

site

gradually

fade

sulphides

area.

sistently

are

south

and

end

from

offices

the

zone

which

the

The

where

east

only

second

con-

within

occur

samples

Jones

and

the

Gulf

Bay

and

Machin

New

York

formations

content

Laughlin
an

Steel

Carroll

the

approximately

1956

the

with

and

driuing

along

pyr0xenite

bands

the
in

north of the Opemiska
Mines property.
To the
opemiska Mines, Chiboug
Copper Corp.
was
engaged
in
drilling which located the faulted
area

Copper

Point

extension of the sequence of vol-

area.

13,000 feet along the Camp-;

sists

I
'1

veinlets

'siderite,

and

sales

tomers

were

and

military

Mummey

was

Mines

OFFICE

Exploration Company

ore.

MINES

CHEMICALS

deposit

the

Manitoba. Indicated and inferred
tons

Cat

reserves

LTD.,

Lake

A strike

area

near

total 3,950,000

•

''i

LAKE CINCH MINES LTD.,
uranium

mine

Starting this
customs

year,

the

♦

»j.-4

•

subsidiary, is

Beaverlodge

Lake Cinch's

mill holding

area,

zone

appears

high-grade

will be shipped to a
for uranium

ore

government contract

production.

separation of

the fault values of 1%

Bay

tance from the fault both to the

to have features be-"

fa«t a^ to the west of the Chiboug

longing to both groups in that it
dike control, it contains
pyrrhotite and the gangue

possesses

Copper property, similar
rarety contain more than

(c copper over 1 and 2 feet.
Gwillim Lake-Scott Lake: Durlog the past year much activity
[ \ ;
;..r.Was. centered
in the
Gwillim
\ 1 -V'Reeent Developmelits in ;
Lake-Scott Lake area where gen-;
some

1
r

'minerals include both quartz and

;

carbonate.

"^Exploration

tion
Lake

Lake:

Detailed

oral

exploration

drilling

and

"diamond

carried out. Howis in progress along Dores, ever, no important developments
both to the north and to the were recorded. -

Dores
•

•.

"southof. the

explora-

ore-bearing .sector.

Lake

were

Wacouiohi:

Exploration,

View of Lake Cinch, showing completed
-tr.

i-rtl''

.•••

Saskatchewan.

and

Rand-Eaton

area,

averaging 1.28% lithia.
*

—

Florence

with

now

Keller

S.
&

previously with Keizer & Co.,
agencies Inc., and John G. Sessler & Co...

government

lithium

Corp.

Co., 31 State Street. Miss Mummey

cus-

Copper

West, Room 416, Toronto, Ontario

LITHIA

connected

Securities

BOSTON, Mass.

lesser copper over 5- and 10-foot lengths
pyrite impregnating the host along are reported in theo ffset Venthe schist planes.
/
'
„tures-like gabbro, but at a disThe

become

MINE, Slocan District, British Columbia,

tonnage

■

(Special to The Financial Chronicle)

manu¬

total

-<r!

Club

;

electronics field.

70%

has

Denver

Columbine Sees.

Columbine

bell Lake fault is indicated. In the

con-

stringer^

chalcopyrite

Co.,

With Keller & Co.

centers

leading

Deisher

aircraft

research

mining high-grade silver-lead-zinc

some

mineralization

added to the staff

DENVER, Colo. —Wilbur J.

the

major

program,

facturers

VIOLAMAC

Corp.

shaft

The

be4n

Properties:

large

name

(Special to The Financial Chronicle)

branches

A Diversified Mining and

Control

firm

DENVER, Colo.—William
Grantz has

EM. 4-8335

interest in the prop-

sericite-

;'schist.

the

| chlorite-chloritoid and. carbortate

areas

under

ex-

the

Joins Carroll & Co.

and, probably, the Jaculet canic, basic and ultrabasic rocks
deposit.
Here the ore zones lie which occurs in
the
Opemiska
wide

is conducting

(Special to The Financial Chronicle)

zones

within

Gale

of Gale Company,

other government
concerned with the de-

many

2a Adelaide St.

chi_

east of

represented by the Copper RandCedar

w>.

wide! have
1*A miles and

over

show

recent

ga|,hro

small

deposit

„

HEAD

that

the other 200 feet

has taken

occurs.

type

the
all

cobalt

Lake

Dominion
magnetite

pyrrhotite

Martin J.

LIMITED

43.4% soluble iron and 7.4% titanium.
It is understood that the

The

chalcopyrite and pynte for all the deposits
except the
Quebec Chibougamau : Goldfields
amount

the

contains

minor

and

area

associated

deposit

securities business from offices at
1750
Grand
Concourse, Bronx,

outstanding

ViolaMac

'along

and

been traced for

pyrrhotite

■

„

Day

orms vjale Company

Forces,

agencies

Fay Day is engaging in a securi¬

with quartz., erty.
some chlorite and local carbonate.
opemiska Mine Area: Little
The main sulphide assemblage is
success
was
encountered
with

for

are

fense

and

business

bor-

equipment. The
company's prod-

manufacturers,

than

less

east-trending

nickel

hulk

both disseminated

occur

and in massive form and

north

layered
gabbro-anorthosite intrusive. Two
rnain magnetite zones, one 80 feet

dikes

toward

sheared and mineralized

d|ps

which

along a relatively narrow zone,
Original textures in the anortho-

that

intruded

and

island

bougamau,
pi0red the

the

Armed

Fay Day & Co. Opens
ties

Taussig,

tent.

and

92-95.

pp.

with

values along with the copper con-

Merrill

in "fairly pure

the

property

£ £

cafe

local

deposits

*ew

had

been

being sold, for the account

The encouraging drill results indi-

of
Lake

the Dores
first type, which

Past

are

boundary with The
Campben Chibougama "K" group,

types

among

The

group.

main

past

Co., Inc.

three shareholders.

common

de-

posit and the Copper Rand-Eaton
Bay deposit where, ore occurs adjacent to and within dikes.

p'ortage

shown

the

Yorcan

} ()()()

by the deMerrill Island the Que-

posits on
bee

discovered

intruded

exert

zones

ReP°rts

the

has

increasing

weeks indicate that a new copperbearing mineralized zone has been

first

dioritic

*rev

d kes

into

the

ycar"

mav

control

during

volume of

company

presently

are

components

Yorcan Explorations has active- Broadway, New York City, under
west-Wad- 'V exlored its holdings in Lake the firm name of Fay Day & Co.

noidhwestto

the

E.—"Prospecting in
Chibougamau."
Can. Min. Jour.

ma^be0termed schist^^zones6* ^
These

and

been

Electronics, Inc.
is Building,
engaged in the development, en¬
gineering
and
production
of
With
electronic, electrical and nuclear

Que.'' Can. Min. Jour. Vol.
72 (1951) pp. 65-71.

Obalski Township." Que. Dept. of
Mines, G. R. No. 71, 1956.

orders

American

Chibouga-

mau,

Malouf,

Or^ne

<~harles Uohanich Upens

used

and

"Geology and

Occurrences,

Ltd., drilled the
showings On Mackenzie

funds

$3,180,060 to provide funds

Bay north of
Chibougama where asbestos

Lake

Pccurs

to acquire testing equip¬
establishing a testing lab¬
oratory.
The balance of 60,000

Island in MacKenzie

general,
Bay and

narrow

are

vary

tens

surface

sale

ment in

Graham, R. B.—"North Half of

year

share.

per

the

market, for

MURPHYSBORO, 111.—Charles
general
corporate Dohanich is engaging in a securicompany's backlog ties business from offices here. He

have

1957

The company believes

commercial

*9 ustrial, medical and commerc
applications of computers and
Process-control systems.

par

American

which has necessitated carrying of
larger inventories. As of March

Chibou-

past

Asbestos

gamau

ma-

zones

teeL

south

Machin

shear

the

During

unfilled

business

order

treading N 50 degrees W to
nearly due west occur in the an-

from

general

purposes.

be
T

07' Graham, Rr B.

program
on
its
of
Portage
Bav

proceeds

company's

"Gan* Mem* 180 <193o>-

Grandines Mines has comoleted

stock

the

Products will expand with the
growth of automation and wider

130,000 shares will be added to the

M^d1s,ley' ..L?' ,f"* ?Lor?T:
1 *— Chibougamau Lake

greenstone in the Dores Lake-'

drilling

„

found

190,000 shares of $1

common

Electronics, Inc. at $11

References:

explored

represent the first imcoDDer

another

second

the

?he Island

chibougamau Lake region.

ore

zone

DOrtant

faults

21 offered

facilities combined with a bettei to finance increased
working capknowledge of the area will now ital requirements.
Approximately
aRow efficient and detailed ex- $350,000 of the proceeds will be
Ploration which is most certain to used to reduce these borrowings
Plove successful,
and approximately $125,000 will

Mines

along

in contact.

are

this

and it

orthosite-gabbro intrusive on both
of a major fault that runs
•through the northern half of Dores
Lake.
The fault dips from 50 degrees to 60 degrees northwest except in the region of the Campbell Chibougamau property where
Shear

Bay

shore

that

underwriting group headed
by Van Alstyne, Noel & Co. and
Crowell, Weedon & Co. on March

Chibougamau has witnessed re¬
cently; Improved transportation

Port-

Chibougamau

Hematite

granite

.sicies

it is nearly vertical.

Island

under

Dores

the

aeianea

where anorthosite, greenstone and

Lake

surveyed

geophysical

north-cfntial

Deposits in Anorthosite

the

been

drilledanew

grading 1.14%
in gold.

the east of

area

has

area

b During the past'summer

ozs.

deposits

lake

The

Chibougamau

i°ound exploration

nearly

the

Prospecting and exploration that

Lake

the

airborne

General Characteristics of the

All

This is being followed bv detailed

and

P01iance that led to the active

Chibougamau:

well

the

during
the
for under-

allow

chalcopyrite occurs in
argillite. Although
the chalcopyrite occurs locally
along shear zones, the possibility

quartzite

approximately 30% to indus¬
trial,
medical
and
commercial

customers.

Stock at $11

dis-

methods.

Quebec Chibougamau

Goldfields

where

Lake

also in prog-

was

Lake

and

American Electronics

at the north
Waconichi
in
the

seminated

Is-

Merrill

drilling

completed

Conclusions
Developments of the past few
years have assured Cnibougamau s
importance as. a copper producing
aiea- R was this promise of im-

covered

Shaft

west

Dores Lake.

million tons of 2.8%.

located

local

Obalski (1945)

zones.

diamond

some

been

of nearly three-

reserves

quarters of

intersected

has

land, is steadily drilling its propbut deep overburden conditions
preclude
rapid
progress, that chalcopyrite may also occur
Chibougamaa Mining and Smelt- in zones parallel to the bedding
ing " has done some preliminary should not be overlooked.
drilling at the southern end of
V
r
.

Corp.

from

has

including

erty

copper.

deepened

and

mineralized

ago which indicated approximately one-half million tons averaging

2.2%

(1473)

Bateman Bay Mining is continuing an active drilling program on
its property at the north end of the

explore

some

•

The Commercial and Financial Chronicle

tons/day

to 6,000

suggested.

•

surface plant

(1474)

The Commercial and Financial

Canada: A
Continued

from first

000 miles in routes

better

page

subsidiary), fly

over

(at home and abroad).

Highway is

185,000 miles of

over

Manitoba

Over

completed and Canada has

About metals and

minerals, it's hard to know
begin. To the big aluminum production
Aluminium Ltd. will, in the
coming months, be

where to

new

$130 million plant of Canadian Brit¬

ish Aluminium Ltd. at Baie Comeau, Quebec, add¬
ing 160,000 tons of ultimate aluminum capacity.

Perhaps the most sensational Canadian mineral
advance

has

been

uranium.

Five

years

ago,

the relative

ura¬

there

was

nium

production potential of the U. S. and Can¬
That argument has now been resolved—and

ada.
all

much argument as to

favor

located and

Canada.

The

vast

bodies

ore

has

an ore reserve

development
mature

gom,

radioactive

number

We have

now

riches

Stanrock, Gunnar, Stanleigh, Bicroft, Can

vide

course,

missile and

by far the world's largest producer; followed

respectable distance by Falconbridge and

Sherritt-Gordon.
is

centrates

Lithium

now

Corp.

The

production of lithium

two

old

years

with

the moment

(Val d'Or, Quebec)

seems

those from New

Island.
three

Both of these stocks have smiled

the

line

The

well

derrick

out in

the

From
the

come

paper

over

rare

profusion and
the

—

petroleum;

same

and

825,000*

miles

square

6 million tons of

Columbia, you'll

newsprint

a year.

trees 300

see

dustry, the
its

energy

of the populace of Canada, and

super-opulent storehouse of natural

another element is
necessary to

sing—money.

thrift

their

resources,

make this elegant

This is supplied by the
people and' the magnetic

appeal of Canada to outside investors;; and it is
implemented by financial institutions and func¬

Transmission

by investors.

were

tioning markets of the first magnitude. Nine
splendid banks, citadels of solvency, with their

pipeline from Peace River
the U. S.

This 650-mile

to the Pacific and to

branches

border, will give commercial outlet to

billions of c.f. in

presently capped

dramatic in its

gas

wells. Even

surmounting

consisting of

elite investments in their

dozen king-

political hurdles, the line has

ing trend of interest

been

now

of these bank shares to

line will

run

highs in net earnings

new

share gains for the

$100 bond and five shares of

stances of

25%).

new

Bank of Montreal with

all the way from Winnipeg

Montreal and, in a broad band
open up new

some

Canadians

horizons for industrial,

per

stocks

.eaiikDm-N

129-year unbroken skein

have, been

traditionally

very

large

capita buyers of life insurance, and, sensitive

-1

'/fy

Continued

..'

on page

Canadian

securities

Our

tion

Correspondence Department
by mail.

and internal bond issues.

Exchanges,

DIRF.CT

New York

net

PRIVATE

CALGARY.

WIRES

SYSTEM

VICTORIA

TELETYPE

AND

teletype service

Canada and
V

on request.

...

to deal in securities

our

offices

acrfoss

New \ ork.

Membership in The Investment Dealers' Associa¬
through our broker affiliate,
membership in leading Stock Exchanges in
tion of Canada, and

TORONTO, MONTREAL, WINNIPEG,

VANCOUVER,

BELL

markets.^guoied

Private

the Montreal and Toronto Stock

United States

Department with 'up-to-date jnformamajor Canadian companies.

V A

A Research

V
-

maintained in all classes of Canadian external

Stock orders executed

us many
sound investment

offer

complete investment service

investors includes:

Markets

buy through

can

which

qualities? Some of these also have attractive growth
possibilities.
*

Canada.

HALIFAX

1-702-3

Inquiries from investors
are

Boston

London, Eng.

CalgaryOttawa

EXCHANGE

PLACE,

NEW

YORK

LIMITED

Montreal

Investment Dealers Since 1921

Telephone WHitehall 4-8161

Winnipeg
Canadian Affiliate
and

—

Canadian

Member Toronto, Montreal
Stock

Exchanges

invited.

McLeod,Youhg,Weir & Compaky

Associate Member American Stock
Exchange
Toronto

Philadelphia

KING

STREET

Vancouver

Halifax

in¬

to shareholders.

Major Life Stock Companies

extending for

year

The longest dividend payer is

of cash payments

natu¬

The ris¬

1956, propelled most

(with per

point premium. Ultimately this

ral gas

capital shares.

rates in

ahead.

move

stock, offered in New York at $156, raced swiftly
to

personal and corporate bank¬

serve

ing needs, and provide their shareholders with

impact, is the Trans-Canada

After

literally honeycombing' the Dominion,

functionally

United States investors

.•

swiftly snapped

valuable fuel.

the'

feet high

Sound Canadian Investments

/?v-

makings of fine timber, and

producer in the world delivering

bonds

the

Mecca for Foreign
Capital
Quite naturally, in addition to the zeal, the in¬

native

financed in 1956 and the securities

was

and 10 feet thick.

Pipelines

Westcoasf

over.

better than

grown

grist of the pulp which has made Canada

British

ap¬

the biggest factor relates to natural

transmission.

are

Brunswick, and Prince Edward

planet.

economy

Of course,

Calgary will display
you'll find anywhere

leading

growth by expanded supply of this volatile and

turning out

that

this

holders. A
The Natural Gas

economy

lightly slurred

none

Wheat pours

forest land

their share¬

Canadian

cattle fairs at Edmonton and
as fine beef on the hoof
as

oversupply.

quality from the prairie provinces

to pro¬

against what

like potatoes,

you

throughput of oil by the pipelines—TransmounWest, and Interprovincial to the East.

2,240 miles,

con¬

for

tain to the

Quebec

ore

balance

rapidly swinging in the direction of mining and
manufacture, the fabled farm and forest output

mainly in the three
prairie provinces of Manitoba, Saskatchewan and
Alberta, have been roaring, aided by added

Units
our

the

of Canada should not be

financed with construction about to

nickel, with International

Petroleum and natural gas,

sized

disinterest.

Among other minerals useful in
atom age are,

years ago,

Lake

Ilmenite, the basic

insulation

necessary

line to the East.

viewing this indispensable industry with

either disdain

the

long term bonds

eagerly sought by investors, who three

still

attained

Northspan, Pronto, Al-

Met and Lorado have all issued

were

point

have

companies

corporate stature.

witnessed the

Slave

future v/orld demand for the metal

gas

greater than the entire present

indicated U. S. total.

where

(Consolidated Denison)

property

Great

platinum, is third in gold and fifth in copper and
lead. Chibougamou, which is a
long word synony¬
mous with
copper, has moved ahead rapidly in
the last year with Campbell the leader
there, and
the Sudbury and Newfoundland
producers ad¬
vancing their production. The lowered price of
copper has taken some
of the romance, (and
profits) out of the copper stocks, but the indicated

developed at Blind River and Beaver-

Canadian

around

Among the more traditional minerals, Canada
still leads the world in production of asbestos and

lodge have proved broad in their extent and just
one

and

Farm and Forest Output

While

Leading Producer of Traditional Minerals

pears at

Highest Potential Uranium Source

day; and exciting new
located at Cat Lake,

titanium, is in increased output.

surfaced road to lure and

installations.

1,000 tons

(spodumene)

Northwest Territories.

now

challenge the new 300
horsepower swept-wing chariots pouring out of
Detroit, and across the river at Windsor, Ontario.
The St. Lawrence Waterway is
moving ahead,
opening vast new vistas for ocean transport into
the mid-continent, and huge new electric
power

than

bodies

ore

65,-

2.000 miles of the Trans Canada

added

Th^-sday, March 28, 1957

A■>,,

Dynamic Economy Propelled by Rich Resources, Broad Markets, Sound Money

Pacific Air Lines (a CP

Chronicle

Montreal

Kitchener

Ottawa

WEST,

TORONTO, CANAPA

Winnipeg London Hamilton

Quebec

Sherbrooke

Windsor

Vancouver

Edmonton

Calgarv

New York

Volume

185

Number 5624

The Commercial and Financial Chronicle

(1475)
Continued from page 34

regional securities. These exchanges, whose
national

By Rich Resources, Broad Markets
to their

major companies

American firms of bankers and brokers

are

service which have done much to

seven

and

Confederation.

Whereas

the

insurance is written by mutual com¬

Land

Not

panies, in Canada the stock companies prevail and
it is

quite

and

common to

stock

the

and investment

well

are

represented

protection

nine

coverage.

total

the list

big

enterprise

ada boasts the

Toronto Stock

vibrant

course, on

companying
Stock
ver

many

DIVIDENDS

nations of the free
There

assets

indeed

around

Have Been Paid From

are

10 to 128 Years

land

$350

confident

fidence

are

could

prises, renowned for the durability of their divi¬
dend

rising earnings and dividends

12 Mos.to

tion

Dec. 31.

Ltd.
Makes

23
and

distributes

1956

19569

0.40

shoes

1956
i

5.7

Aluminium

Ltd

*2.35

*0.35

115

2.0

Largest producer of aluminum
ingot in the world

Andian National Corp., Ltd..
Operates oil pipe line
Colombia, S. A.

4.75

7.4

Anglo-Canadian Pulp and
Paper Mills, Ltd
Newsprint and allied products

!
11

2.00

5.4
|

ac¬

background of

and profitability in the

progress

♦

Quotations
price

past; and

solid basis for confidence in the future.

oaks.

Maple Leaf symbolizes
v"

a
,

forest of financial

prior

Dec. 31,

§ Add

The

represent
to

Dec.

31, 1956 sale prices or the last
date.
Bid and ask quotations are

that

sale,
ot

Canadian Exchange Rate.
paid in U. S. Currency.

Continued

page

"On-the-spot" information
business

opportunities in the

areas

is available through

they

serve

over

800 Canadian Branches of the

;

Royal. This familiarity with

specific territories is available to
American businessmen who want
data

•

concerning economic and

other conditions in all
r

parts of this

fast-growing country.
The

Royal offers these services:
!

maintaining

name

our

its

•

Credit reports

•

Sales

•

Information
raw

good

greatest

construction,

basic

been producing

development

processing

Development Department.

Office in Montreal.

quality control

of improvements.

This

the

con¬

true

Over 880 Branches in

Canada,

Cuba, the Bahamas, British West Indies,
Central and South America, New

ROYAL BANK
OF CANADA

York, London and Paris.

/tmeiica

i*t

Canadian

Ingeisoll-Rand
p

Head

Office:

power,

transportation

THE

industries.

meaning of the C-I-R trade mark.

labor,

equipment used in Canada's mining,

manufacturing and

This entails eternal vigilance in
stant

materials and

Write Business

Since 1882 Canadian Ingersoll-Rand has
of the

representation

anywhere in Canada

at Head

much

• Factory sites

re¬

sponsibility.

Montreal,

Que.

Works:

Co.
Limited

Sherbrooke,

TOTAL

EXCEED

ASSETS

$3V2 BILLION

New York Agency—
68 William Street, New

lj
York 5, N. Y,

Chicago Correspondent—
Que.

current

Dividend

:%■

!
*

1956.

doing business
with the Royal"

but

the correct political and

you

We like

•

■

climate; classically fine corporations; a

A SIMPLE DESIGN

Paymts. to
Dec. 31,
Dec. 31,

—Canadian $ §—

exciting opportunities for scintillating capital

gains, Canada offers

payers.

Winnipeg also provide markets in

secutive

Based

Agnew-Surpass Shoe Stores,

payments. " Whether the aim is blue chip

quality, steady

traded in

dividend

Quota-

through retail chain

renowned Canadian

list of long-term

Extras for

con¬

;be displayed than the list which

% Yield!

No. Con-

Years Cash

follows of the broad and diverse Canadian enter¬

those contained in the

Appro*.

Including

•*

No better illustration of the basis for this

exchanges in Calgary, Edmonton, Vancou¬

and

invested

Canada

financial
as

CONSECUTIVE CASH

Divs. Paid

that of

markets, and Can¬

Exchanges there

corporations—such

On Which1

Investment"

Consistent Dividend Payers

mining shares. In addition, together

quantity stocks of the

Common Stocks

devoted to Canadian securities with

ones

million.

mosjt active one in the world—the
Exchange—a'buzz with eager vola¬

with the Montreal

participation

Cash Divs.

tility, especially in the lower priced and
venturesome

citizens

investment.

economy

depends, of

of "Confident

combined

Excellent Exchange Facilities
An

international

but investment trusts have flourished.

long dividend-payers.

Canada

CANADIAN

popularize and

world, sought placement of their funds in Canada

issuing company held by - the

phase of his insurance

These life stocks

only have investors, both corporate and

indivdiual

find life insurance contracts

individual to maximize both the

same

assure

Canadian investment.

76% of life

broad

encourage

Wesfy Canada Life, London Life, Mutual of Can¬
ada

LISTED

and wire connections with leading

rapidity and efficiency of quotation and execution

Sun, Manufacturers, Great

—

underwriting firms, provide fluidity to

the economy;

Money

protection and annuity needs,

berships include not only local brokers but big

Canada: A Dynamic Economy Propelled
Sound

TABLE

mem¬

Norman C.

Ailingham, 231 So. La Salle Stre»f

The Commercial and Financial Chronicle

(1476)

responsible

Continued from page

desirable

this

for

by the end of 1958 and by 1960 to
have two or three mines produc¬

of real

value to

ble

consult

us.

when

prospector,

to go

every

min¬
important
matter, but a good representative
rapidly growing woidd popula¬ organization overcomes that dif¬
ing

ficulty.

consequent increas¬

the

Economy

of oil and
mineral industry is having a pro¬
found effect on the economy of
Saskatchewan. It has made possi¬
This

Department
of Mineral Resources has carried
on a number of activities designed
to encourage and help in the pros¬
pecting and developing of our
operated

have

will be glad

We have done geo¬
logical surveys and mapping. In
two years we carried on an Aerial
Magnetometer Survey over lim¬
to

give you.

ited

This

areas.

pose

carry

magnetic
Survey

and
air on

first

Province

work

as a

sources

close
from

of Mineral Re¬

endeavored

has

prospecting

organization such

production.
this one is

nated

its

days

early

was

industry—agri¬

one

That industry was domi¬

one

are

principal
now

crop—

well

the

well balanced
economy,
consisting of agricul¬
ture, mining, oil and gas produc¬
tion and forest industries, together
building

way

all

one
or

the

group

secondary

industries

service

industry

the

with

contact

Saskat¬

future.

near

very

culture.

with

keep

either in pro¬
coming into production
others,

the

wheat.

the
this

service to the prospector.

The Department

and

Province

square

undertake

plant

chewan

Electro¬
Magnetometer
1,600

plant, a cement plant, a
pipe plant, a sewer pipe

miles. As far as I know we are

steel

duction

pro¬

year

out

num¬

important secondary indus¬
We now have a wire and

cable

which

Plan, details of

Assistance

members of my staff

establishment of

the

ble

tries.

Prospectors'

development

ber of

years

some

Always in

Sound

Even in election campaigns

the limit,
left

been

The

politician

Cash Divs.

behind by achievement.
25 years will be great

members

and

they will

either

necessary.

and
No

industry, has been entirely

12Mos.to
Dec.

31,

tion

Paymts. to

Dec. 31,

[tec. 31,

1956*

1956

Anglo-Huronian Ltd.

1956 '

Holding

interests

Newsprint and
also

0.50

11%

4-3

0.60

6.1

0.80

16%

4.7

1.60

0.72

11%

0.16

0.975

12%

7.6

1.60

3.1

operating co.—chiefly
Can. gold mining

Anglo-Newfoundland Devel¬
opment Co., Ltd. "Ord."

Ry. Equipment

' <

■

allied

products;

mining interests

Argus Corp., Ltd
Investment

Halsey,

Stuart

associates

Co.

March

Inc."

co.—manufacturing &
merchandising interests

and

offered

Asbestos Corp., Ltd
Mining & milling of asbestos fibre

$5,540,000
of
Southern
Railway
3%% equipment trust certificates,
maturing
1957

15,

15,
inclusive.
second
and

1967,

certificates,

final instalment of

gating

tion

priced

3.80%^

business

Aunor

the

ac¬

subject to authoriza¬

by the

Interstate Commerce

issue

steel

secured

103

cars;

cost

less

not

Operates 602

•

auxiliary

branches

and

128

agen¬

throughout the world

See Bank's

Operates
offices

510

branches

and

37.

page

Bank of Nova Scotia

124

2.00

57%

3.5

sub-

throughout the world

$13,-

Banque Canadienne

850,000.
Associated
Dick &

carburetors

BANK OF MONTREAL_____

auto

than

3.5 ;

1.88

equipment

parts cars and 1,050 box cars, esti¬
mated

Ltd

Service distributors of automotive

cies

hopper

Mines

gold producer

Auto Electric Service Co. Ltd.

cer¬

are

The

6.2

general hardware

Gold

Ontario

Commission.

200

electrical

sale

and

5.0

•/

Large wholesale and retail

issue aggre¬

are

yield from 3.50% to
cording to maturity.
Issuance

$11,080,000,

tificates

Ashdown Hardware Co., Ltd.,
J. H., "B"

semi-annually July
Jan.

These

Nationale

1.50

3.6

Barber-Ellis of Canada, Ltd.Stationery and printers' supplies

5.60

b42

13.3

Beatty Bros. Ltd

0.50

0.80

4.7

0.10

1.0

2.00

45%

4.4

the

offering are:
Merle-Smith; R. W. Press-

Operates 247 branches in Canada

prich & Co.; Baxter & Co.; Free¬
man
& Co.; New York Hanseatic
Corp.; Wm. E. Pollock & Co., Inc.;
Shearson, Hammill & Co.; McMaster
Hutchinson
&
Co.; and

Canada

8.0

Manufactures barn and stable

equipment,
pumps,

household

equipment,

etc.

Beaver Lumber Co.
Lumber &

Joins F. S.

Moseley

274

Ltd.____

building supply retailer,

branches in

Canada

Belding-Corticelli

(.Special to The Financial Chronicle)

Ltd

Makes nylon, silk and rayon
threads for all purposes

Mass.—Phillips Farrington has joined the staff of
F. S. Moseley & Co., 50 Congress
Street, members of the New York
and Boston Stock Exchanges.
BOSTON,

LIMITED

% Yield
Based on

—Canadian J §—

Suplee, Yeatman, Mosley Co. Inc.

General Fund

secutive

its

Trust Gffs. Offered

government

Extras for

Divs. Paid

great years for our

Southern

No. Con-

Years Cash

that

too

sure

Aopcox—
Quota-

Including

forecasts have

for the Association and

years

Money

be inclined

may

Balanced

for

Future

Bright

ing future.
The Saskatchewan

For

forecast.

Province—Saskatchewan.

ing demand for food the potash
industry has a bright and promis¬

northland.

every

any

company

hesitate

forecasts I have been too conserv¬

It is impossi¬

developer and

every

ing potash. The principal use of
this material is for fertilizer. With
and

Economy Propelled
By Rich Resources, Broad Markets,

Th^. future is bright, but I

age.

ative.

tion

page

Canada: A Dynamic

cooperation, with vision and cour¬

In Saskatchewan Province
in production

be ac¬

can

complished through goodwill and

Oil and Mineral Progress

from

change, but it is another practical
demonstration of what

the first mine to be

Continued

Thursday, March. 23, 105?

..,

Bell

Telephone Co. of Canada

Most
in

important

Ontario and

telephone

system

Quebec

Belleterre Quebec

Mines, Ltd.

0.10

1.92

5.2

0.40

5.7

Quebec gold producer

A mutual investment company

With

incorporated

Gage-Wiley "

Biltmore

Men's fur

(Special to The Financial Chronicle)

(1) investments in the resources

and industries of Canada
fied

of diversi¬

means

Arthur
with Gage-Wiley

SPRINGFIELD, Mass.
H. Billion is

now

Third National Bank

Co., Inc.,

♦

—

Quotations
Dec. 31.

5 Add

Building.

wool

felt

that

Dec.

31.

date.

•

hats

represent

prior

price

Ltd

felt and
v

Canada, seeking long-term growth possibili¬

ties through:

Hats

Bid

sale

1956
and

.«

prices

ask

1 *

•

♦*

th'e: last'

quotations

are

sale

o£

1956.

current

Canadian

Exchange Rate,

b Bid.

holdings of Canadian stocks and (2) rein¬

vesting all net earnings at low tax cost.
Prospectus

may

be obtained from

authorized investment dealers

CANADIAN STOCKS & BONDS

V A NO 10, SAN 1)101 vS A. COMPANY
111

Devonshire
Boston 9,

NEW
fti

Street

MAvSS.

LOS

CHICAGO

YORK

Broadwav

lio

South LaSalle Street

Zio

ANGELES

{

Orders Executed

all Canadian

Exchanges

Regular

West Seventh Street

Commission

Rates

Traded

in New York in

United States Funds

CHARLES KING & CO.
Copy of Annual Report
'

available

Stockholders

MEMBERS

Stock

Toronto

request
Canadian

455

Carl M.

Loeb, Rhoades

Members \ew Tor\

Co.

Stoc\ Exchange and. other

Craig

St.

Stock

Exchange

1-5886

American Stock Exchange

Broadway

NEW

MONTREAL
UNiversity

Montreal Stock Exchange

Exchange

YORK

WHitehall 4-8974

Royal Bank Bldg.

TORONTO
EMpire 4-6407

;
'

Leading Stoc\ and Commodity Exchanges
42

WALL STREET

Private Wire System to

their connections in 90 Cities

NEW

YORK

5, N.Y.

Branch Offices, Correspondents and
throughout the United States

Direct Wire Connections

TORONTO, NEW YORK,

MONTREAtf r'
■r.y.

Volume 185

Number 5624

The Commercial end Financial Chronicle

(1477)

Continued- from-page26-•,

.3.. cf-

Sound

Money
Approx.

Including

% Yield

No. Con¬

Extras for

secutive

12Mos.to

Years Cash

Dec.

Divs. Paid

Quota-

Based

tion

31,

Dec.

1956

1956*

gary, bringing with
skill and
experience,

1956

important labor

Traction, Light and

Power Co.; Ltd. "Ord."

t0.75

10.2

Diverse utility interests in Brazil

■

-British American Bank Note
Co.

■

Ltd.

1.70

co.,

Electric

British
Co.

Co.

Ltd.

0.925

1.30

3.0

Telephone
41

2.00

4.4

0.40

1.80

4.8

0.65

11 y2

variety of linen

5.7

ada

0.80

5.7

over

ana

Edmonton
and

gas

0.10

from

3.7

Dominion

1.20

22'fa

Canada Bread Co., Ltd
and

0.10

3.00

that

million

when

sales"—making for

the

East,

West

including

connections by
direct result of

power
as

the

1.50

102

4.15

36 V2

North,

our

com-

Canada Life Assur. Co
largest Canadian

349

and sickness

million
usage;

insurance

rence,

Canada Malting Co., Ltd
Malt for the
brewing & distilling

f2.00

4.0

Dee.
date.

31,

1956

Bid

sale

and

prices

ask

the

quotations

last

are

excess

all

nancing, if Canadians are too cau¬
tious and miss
out, the risk capi¬
tal, if you want to call it that, is
available elsewhere

route

drive will be
in '58
On

Winnipeg,
on

the

exactly

areas, a

huge

analysis of Trans Canada it

dro

is found
be

that of

the

to. 5uPP'y $113,750,000, or someover 48%- In addition, oi
jre(jerai

and Ontario

are

million

the

SlSo

risk

1980.

have

demand
,

not

envi-

Joins Logan Staff

less than 50%. For the
unit issues
there will be, as I
understand it,

(Special to The Financial Chronicle)

LOS

ANGELES,

con¬

Co., 2115

Beverly Boulevard.
in

bonds, $20 million will be deliv¬
ered by the U. S. banks
making

With Daniel D. Weston

the loan of the

LOS

same

amount.

This

ANGELES, Calif.

Menaker

leaves $104 million of which
$70,-

Weston

with

now

Co.,' Inc.,
Spring Street.

390,000 has been underwritten
by

—

David

Daniel

618

Keystone Fund
■

of C anada, Ltd.

for

purchasing

/i \

fully managed .Mutual Investment Company
seeking long-term CAPITAL GROWTH

the

expanding Canadian Ec
/conomy

Prospectus from

Bums Bros. & Benton. Inc.

Distributors

Tlie Keystone
50

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

your

local investment dealer

Company of Boston

Congress Street, Boston

9, KLassacLusetts

Dealers

—

I •

Canadian Securities
BONDS

Government,

Provincial,

Corporation

External and

—

each month, of the

Municipal
Internal

Canadian economy

STOCKS
Orders Executed
at

Canadian

Monthly, the B of Mvs Business Review re¬
ports and interprets for you Canadian eco¬

Exchanges

nomic

regular commission rates

news

they

and trends. To receive
copies

published, write
Head Office, Montreal.
are

any

U.S. office

Affiliated with:

Burns Bros. & Denton, Ltd.

Burns Bros. & Company, Ltdo

>Toronto, Canada
,

Members

Toronto

Montreal

TO 2 MtinOH CAHADUn

Bank

Montreal

Toronto, Canada
Toronto Stock

Exchange

Qana^an stock
Ottawa

Exchange
Winnipeg

Hamilton

Now York

- - -

Chicago:

Speoial

64 Wall Street

Ztfeact
700 BRANCHES ACROSS CANADA

San Francisco

Representative's

•

Office,

141

333 California Street

West

Jackson

Blvd.

Office: THantveal
RESOURCES EX6EED

South

Calif. —Fer-

nand L. Nevarez has become
nected with J. Logan &

feel very

happy and proud.
However, of the $124 million

only be 4% of
usage

Canadian Line."

capital, U. S.
an
equity of

sold in Canada and 27%
the United States which
makes

atomic

investors would have

73%

shows

use, of

make sound investments in, will
do it again-your Canada-an "all

Government

to build the
But of what
might

line.

called

Report

siooed in Canada today.
Canada—the best country in the
wh°le world to live m, and to

thing

course

Gordon

estimated

scarcity of economic hy¬
power
ahead, Natural Gas

could

$236,500,000,

raised, Canada is expected

as*-to

provided

York

energy power will
the
total power

and ,the

With the

—

that

to reach Montreal

amiHiiMuiMHiHiHjiituiiHUiiiiuiiiiimhumiiHmamaimiuiiimiiiiiiiiiiiittiiiimiMiiiiiuiiiiiiiiaiiiiifiitiiiiiiiiiiiiiiiiiMiiiiiiiiiiitiiiMmiiiiitiiiimittiiiMtMtiMUHiiiiiiMiiiimiiiiiiiiiniiiiiitiiiHiimiiniiiiiiiiniiiiiiitiiiiiiiimiiji

Underwriters

New

developed
Alberta, without which

compiled

regardless.

storage share. In Montreal, already

page

and

constant enquiry

preparation for the huge
to get to work
early

etc.
on

Na¬

$60

million which includes the Dawn

Continued

•

Northern

preparing for natural gas
in the Oshawa, St. Law¬

Ottawa, Hull

to the

Toronto.

from Sarnia to Niagara easily $50

31, 1956.
current Canadian

Exchange Rate,
t Adjusted for stock dividends, splits, distributions,

Co.

the East will get gas,

compilation; in the
Union Gas Lines now covering all
the towns, cities, and industries

sale

far

Trust

principal
the pipe

amount, as yet not off the drafting
boards

industries

^Quotations represent
price prior to that

Gas

sumers

2.8

com¬

panies underwriting life, accident

tional

the oil in

ily finance upwards to $30 mil¬
lion, creating a major sales poten¬
tial; in the Toronto area, Con¬

4.1

Yfe could not have gas, as they go
9and 111 I13™1 in production. It is
right-of-way is being cleared mf°ri?}ative^ that the admirably

and

deed

Texas

to when

and

Bond Financing

Reach Montreal in 1958

Answering the

The
success
of
financing gas
bonds across all the United
States
envisions our success in bond fi¬

far

Canada.

interest

first mortgage

greater

houses

line under trust
n

ga^^St

Ontario Natural Gas Co. will read¬

Holding and operating company—
machinery & equipment interests

Dec.

3.3

cake wholesaler and

Canada Iron Foundries, Ltd..

,§ Add

plants

the vision in building an "all Can¬
ada"
pipe line.
Information
is

■

One of the

everything
gathering stations and petro¬
on

5.4

Cane and beet sugar
reiining

Bread

the coming construction years
to
a
billion dollars of

through to
heating and
contractors,

Sugar

Co., Ltd.

retailer

pipe for Eastern Trans Can¬
Co.

chemical

drilling rights

in Alberta

Canada

its

spending programs,

Corp.,
20

oil

is
resulting In
the new Welland mill
capacity of 200 to 300

upwards

Ltd.
Leases

derived
encourencour

all the expenditure across Canada

cotton products

Calgary

children.

construction, and saving
$300 million to Canada. Totaling

;

and

which

building

eter

reared

-thousand tons of 20" to 30" diam¬

poultry prod-

Caldwell Linen Mills, Ltd.__
wide

oper.

Burns & Co. Ltd. "B"

Makes

1.50

been

transmitting unsul¬

the
Dine line
tne pipe
is the
line is
tne

with

are

our

agement

6.0

Burlington Steel Co. Ltd.

have

Tvokarof''the' benefits

insulation

Meat, lards, butter,
ucts, etc. •

dian

"spreads"

nom
frdin

2914

■

•

who are not
bringing strange new
red doctrines of Government and

lied to

5.0

Laundry supplies, hardware,
plumbing supplies, etc.

Building Products Ltd

rolling mill & related

the

which

(Stanley) Ltd. "B"___

Steel

neighbors to own hew homes
here, and make Canadian citizens

which

privately owned
telephone system in Canada

faith, but honoring our Constitu¬
tion, and reverencing our God,
will emulate the simple faiths in

Asphalt roofing, flooring and

over-

$50

pleted and ready to take
gas
from Sarnia to Niagara, easily $50
consumers
mean
typical "Cana¬

are fortunate that these
citizens will come as friends

new

2.0

46%

Second largest

■•'v

available

and

"Ord."

Brock

seas. ,:

manufactured

exceed

secured

Economy

remodeling and extensions will

tion We
47

controlling B. C.

Columbia

Canadians,

This is the place to make refer¬
to labor through immigra¬

refining,

British Columbia Power Corp.
Ltd.
Holding

quotas

present

investment

$33,610,000 to Canadian firms to
date of writing. These bonds
a^e

ence

British American Oil Co. Ltd.
Petroleum production,
distribution

their

well as
from-the

Isles, again of a class as
equal to our own young

nearly

5.7

Makes bank notes, bonds, revenue
stjwnps, and similar items
-

British

them,

31,

—Canadian $ §—

-Brazilian

To the Entire Canadian

Paymts. to

Dec. 31,

Impetus Natural Gas WOtCm

Cash Divs.

$2,700,000,000

The Commercial and Financial Chronicle

(1478)

Continued from page

countries.

serving food, keeping meat fresh
at normal temperatures for sev¬

tracers in chemi¬

cal industries have all found use¬

potatoes without
sprouting for a year, and the ster¬
ilization
of
vegetables,
fruits,
eral

ful applications.
'! In Agriculture

new

many

facts

about fertilizers have been found,
Dean

Saskatchewan.
The
radiations have produced new
types of rust resistant tobacco;
peanuts which yield 7% more oil;
grains with stronger stems and a
type of barley which holds its
seeds
up
so
as
to be readily
gathered with a combine.
The

versity

elimination

least

sterlized
millions

the

screw

worm

employing
solve many

the

Medical

ous

trees

conditions of shade,

malignant diseases is generally

Division

Atomic En¬

Limited, is used
hospitals

and

Canada: A

Dynamic Economy Propelled
By Rich Resources, Broad Markets,
Sound Money

shipped
States

both

Atomic

dom

Atomic

during

the

number

the

Corp.
Lends

workers

require a few millicuries
radioisotope, either to use

Canada

other

ment

di¬

Ltd.

trical

rate

Fossil fuels in

all

which

Our facilities

can

be of valuable assistance to those interested

industrial development of Canada

selecting suitable investments through which to

investors

and of benefit to

participate in Canada's assured growth.

electrical

the

power

most

Nesbitt, Thomson and Company
*

Limited
Mtmbtri

The Investment

Head Office:

Dealers'- Association

of Canada

(

W., Montreal

meet

Cities of Canada-

Other

Co., Ltd.__

5.6.

f0.75

3.8

1.60

54V4

2.9

1.50

251/4

5.9

1.445

271/2

5.3

0.75

131/4

5.7

1.15

5.6

11.00

755

1.5

1.28

27%

4.6

0.50

2.6

t2.5333 43

5.9

make

bushings

and

Ltd
fabrics

Fairbanks

Morse

sales

Morse

agents

Co.

for

Fair¬

Chicago

sell¬
Electric

products in Canada

Canadian Gen. Invest. Ltd.
Management type invest,

trust

Canadian Industries Ltd._l
Chemicals and

allied

ex¬

CANADIAN

for

RAND
matic
•

tools,

See

products

INGERSOL-

LTD.

Manufactures

countries,

compressors,

pulp and

pneu¬

paper

Company's advertisement

Canadian Oil
Petroleum

Cos., Ltd.__,__

refining &

even

importing

Can. Pac. Ry.

page 35.

0.60

27%

2.2

1.50

321/2

4.6

distribution

"The"

and

oil

her

energy

countries

Quotations

represent

price
Dec.

importing

page

accessories, parts, etc.

? Add

Continued

railway system

Automotive

requirements.
are

Co. "Ord.'C

Canadian Tire Corp., Ltd._^_

Great Britain is
coal

private

Canada

♦

Branches in the principal

17%'

grain

and

manufacturing
rights
of
General

ing

there are 60,000
more
people in the world today
than there were yesterday.
Coal
has been the greatest source of
now

1.00

Moreover,

energy but

355 St. James Street

ropes

Exclusive

electricity used in the United
in 1920 was less than
of what was consumed last

year.

3.2

Co.

Canadian Gen. Elec. Co., Ltd.

are

Kingdom
6%

;

Co., Ltd.
banks,

has grown even

advanced

and

subidiaries

Celanese

Exclusive

sources

needed. As as
how this demand

—

bearings,

Canadian

quanti¬
and

energy

ample

co.

bronze

Synthetic yarns and

countries.

hydro

1.00

castings

only supply a fraction of the

can

total

in the

have

Bronze

Holding

ties to meet-this requirement

those

Cable

and

co.—brewing

Canadian

not available in sufficient

C. '

"B"

Canadian
,

Power

most countries

include

milling interests

all

accelerated

vessels:

interests

Wire

Holding

of the standard
peoples, the de¬
for power, especially elec¬
power, is increasing at an

mand

passenger

Canadian Breweries Ltd._i__

raising
of

4.0

•

the world

With the increase in population
the

831/2

•

Operates 760 branches throughout

detection, measurement and con¬
many of these ap¬
plications possible.

living

and
diverse

Copper and steel wires

trol has made

3.30

101

Canadian Bank of Commerce

be able to follow the

Nuclear

4.5

Mortgage-

Steamship Lines, Ltd.

Canada

electronic equipment for

1956

first

Vinegar and apple products

The simultaneous develop¬

emits.

1956 ♦

1.625

hotels

by the radiation which it

process

'Paymts. to
31, Dec. 31,

•

Canada Vinegars Ltd

rect

and

: prods.

______

Freight

only

Dec.

31,

1956

mortgage security,
issues debentures, accepts deposits

500 curies of cobalt

research

packinghouse

Canada Permanent

shipments

pound of radium in radiation

and

OPPORTUNITIES IN CANADA

•..f Pull line

contains the equivalent of at least

prior
31,

that

Dec.
date.

31;

1956

Bid

sale

and

0.70

•

ask

prices

110

the

quotations

6.4

last

are

for

Canadian

stock

Exchange Rate,

dividends, splits, distributions,

'25

Broad

Street, New York 4, N.

etc.

140 Federal

Direct
^

New

York,

Boston,

Teletype NY

1-4358

Street, Boston 10, Mass.

wire

connections

Montreal,

between
'* •

•

•*.

Toronto,

•

Ottawa,

Hamilton,

Kitchener, London (Ont.), Winnipeg, Calgary and Vancouver

Collier Norris

Greenshielcls & Co (N.Y.) Inc

Quinlan

MEMBERS
MONTREAL
CANADIAN

STOCK

EXCHANGE

STOCK

EXCHANGE

Specializing in Canadian Government
Provincial, Municipal and Corporate Securities

Wall

Street, New York

Canadian Affiliate

Collier Norris
Limited

Quinlan

Greenshields & Co Inc

MEMBERS
The Investment

Dealers' Association

Montreal

507 Place d'Armes

HArbour 2201

Business
of Canada

established 1910

Toronto

320 Bay

Street

EMpire 8-2984

Montreal

Ottawa

Quebec

Sherbrooke

sale

1956.

current

t Adjusted

Nesbitt, Thomson and Company, Inc.
Telephone HAnover 2-8875 "

Hon

—Canadian ■$ §—

Canada Packers Ltd. "B

by the Canadian company,
however, would be very much less
since
each
"theratron" machine

Most

Dec.

Divs. Paid

Energy

Authority
period.
The

separate

% Yield :"

Based

Quota-

T2 Mos.to

Years Cash

made

foreign

other

secutive

Energy
same

Approx.

Including
Extras for

No. Con-

Commission and the United King¬

Kingdom,

United

the
States

United

pre¬

amount

one

Products

page

activity was
the
combined

Canada,

effect of radiation

equal

United

Thursday, March 28, 1957

Cash Divs.

amount

about

60.

from

emit.

This

first

ergy of Canada
in
more
than

moisture

such

tracers, or to label other
chemical compounds with an
active atom in place of an inactive

pioneered by the late Dr. A.
Cipriani, and produced in the
NRX reactor, developed and sup¬
plied
as
a
practical
radiation
equipment
by
the
Commerical

and soil.

The

accepted in many cases. Thus, . . .
radiation from cobalt 60 sources,

sap at different
growing under vari¬

and

would

intensity,

isotopes to
medical theraply in the treatment

the

and

of at¬

Applications

application

few

are

radioisotopes new used for such
Last year the -Commer¬
cial
Products
Division
shipped
more
than
50,000 curies of iso¬
topes, equivalent to the radiation
which about 110 pounds of radium

one

The

of the

movement
seasons

roots

such radioisotopes to
of the problems which

tack.

Forestry the life history of certain
insects, such as the pine weevil
and others, has been traced, as
well as the uptake of nutriment
by

in¬
are

and

have defied other methods

States.

United

terested

use

dollars to farmers

southern

those

silviculture

limnologists

gists,

reduction

of
males has already saved

the

weeks,

flour, milk and certain antibiotics
are among the applied uses of the
radiations from isotopes.
Biolo¬

through the work of
J. W. T. Spinks of the Uni¬

especially

134

Continued

purposes.

Applications of Atomic Energy
radioisotopes

131, phosphorus
strontium 90 and

198,

caesium

Present and Fntnre Peaceful

Iodine

gold

32,

Toronto

.Volume

185

Number 5624

The Commercial and Financial Chronicle

Canada: A Dynamic Economy
Propelled
By Rich Resources, Broad Markets,
Sound

Continued

Cash Divs.

Approx.

Including

% Yield

Extras for

secutive

Quota-

12Mos.to

tion

Years Cash

Dv3l,

Dec. 31,

Divs. Paid

1956

1956*

Based

Westinghouse

Present and Future Peaceful

coal and oil also

Paymts. to
Dec. 31,

Airbrakes

•//. electrical

and

large

variety

apparatus

Yarns and fabrics

Central

co.

4.5

contains
18

two

0.80

30 %

1.40

•1.00

■■■'A

14%

elevator

million bushel

1.10

Oil

props,

holding

Conduits
Rigid

West.

co.

0.20

Canada,

6.2

per

0.80

10%

year

ordinary family in this
perhaps 5,000 kilo¬
hours per year, it is not dif¬
uses

7.4

in¬

then

power

need

those

have

especially
countries

European

been

depending

source

upon

power.

production

conventional

Confederation Life Assoc.___
Wide

life

range

endowment

2.00

127

1.6

metal,

Smelting Co. of Can. Ltd.
Lead,

zinc, silver,
tilizers, etc.

chemical

1.75

271/2

mills; daily
capacity 2,479 tons

39V8

and

Toronto

distributes

109

0.80

2.9

1.50

5.4

1.10

6.8

5.8

gas

tions.

area

Consumers Glass Co., Ltd.___
variety

glass

Holding and

operating
spirits

co.

—

Manufactures
cotton

heavier

grades

0.70

Jbusiness forms

price

prior

Dec. 31,

0.60

.231/2

continuous

,•v

represent

Lewis

and

Mr.

Gray

of Atomic Energy of Canada Lim-

the

Europe

both by
funda-

a small nuclear
demonstration plant is nowunder construction at Des Joachims. It will use natural uranium
oxide, be heavy water moderated
and cooled and will develop 20,000
kilowatts of electricity.
It is not
expected that this plant will gen¬
erate electricity at a price which
is
competitive
with
coal-fired
plants but it will provide experience for operation, reliability and
the manufacturing companies

hehavior

which are designing and making

competitive
per

price
kilo-

investigating
producing

possibilities

nuclear

which would be competi-

energy

the

electricity

with

fossil »fuels,
investigations of

into

nature

the

fuel

elements under
and

corrosion

radiation,

metallurgical

search.

Their

natural

uranium

re-

with

experience

water

heavy

at Chalk River,

the components. This joint effort
by the 5„tario Hydro, the Cansd'ian General Electric Company
and

Atomic

Energy

Canada

a first step in this new
Continuedon page 40

Limited is

moderated reactors has been espe-

that

date.

1956

Bid

sale

and

prices

ask

the

quotations

1956.

last

are

sale

not

have

ideas

have

NORTH, EAST, SOUTH

and

WEST.

required

knowledge

and

re¬

requirements but ad¬
such knowledge are
ahead at a pace that
thought possible a few

on page

watts.

have

electric

nilot

successfully

in small

power

few

—

Actually

supplying

reactors

many

constructed

which

amounts

Continued

Already

be^n

produced

b Bid.

V',

—

all

ago.

years

form

slurry form.

suggested

proceeding

:TV"'

Dec, 31,

the

vances

2.6

§ Add current Canadian Exchange Rate.
Dividend paid in U. S. Currency,

materials, their behavior under
corrosion and metal¬

was

Quotations

Commission

lurgical properties. Many of the
designs are^at present beyond the
experience
of
manufactures
to

L&
sells

been

types

new

meet

Manufactures

♦

radiation,

duck

Grain, R. L. Ltd
,

re¬

leadership of-Mr. H. A.
the
Hydro
Electric
of
Ontario,
and with /the cooperation of Dr.

Smith

Power

search about the nuclear constants

al-

Cosmos Imperial Mills Ltd.__

have

These

much

containers

Corby (H.) Distillery Ltd/'A"1
and

of
ordinary water,
heavy water under pressure,
gases, liquid metals and just the
active steam from boiling solu¬
various

Manufactures

cohol

types

feasibility study

uranium metal,
oxide,
uranium
233,
and the salts of ura¬

solution

Coolants

4.3

newsprint

Consumers'Gas Co. of

Wide

operate
generating

result of

group
of engineers from
several Canadian power utilities

enriched

Plutonium
nium

five

the

Many

uranium

6.4

fer¬

Consol. Paper Corp., Ltd

suggested, using natural uranium

Consolidated Mining &

Toronto

of heat

this purpose have been

actors for

and

steam
electric

equipment.

policies

Owns

amounts

enormous

with,

performing such

power

mental

The

both the

cooperate

other fossil fuels, the cost of nuclear power must be in the range
of 5 to 6 mills per kilowatt hour,

tive

liberated by the fission of a pound
of nuclear fuel is the basis for

Page 47

available

its

reason

ited and the advice of the staff-

Knowledge and Research

Consecutive

for

requirements by steam generating
plants. To compete with coal or

their

Second Table Starting

all

by 1962 and will
develop its further

of the Suez Canal has given watt hour.
The scientists engiimpetus to the develop- i neers at Chalk River have been

among

Dividends From 5 to 10 Years Appear in the

prov¬

extra

oil

Paid

used

have

would be about 10 mills

who

Listed Companies Which Have

other

inces, however, have very limited
supplies or none at albu Ontario
will

reactor

Plant Demonstration Costs

under the

The

scientists in

still

block¬

recent

and

fuel.

The

U.
our

Quebec and British
Columbia have large quantities of
undeveloped - hydro power sites
available.

known

tests.

position.

nuclear

ment of nuclear power,

■

dian

any

Cana¬

owp

being taken in employing

conduits,- elbows,

couplings, etc.

rewarding. The NI^X reprobably, the most suit-

is
of

ooolants. For this

our

terest is

age

also

Nationqt Co., Ltd..

eltctrical

3.25

hours

Power.

I11 Canada

But to consider

only about i hydro

ficult to realize why so much

9.9

grain

Collingwood, Ontario

Commoil Ltd.-_
'

6.8

HVs

considers that the

one

the

country
watt

Collingwood Terminals, Ltd.
Operates

When

that

Wines and juices

working 240 eight-hour days and

2.5

General fiduciary business

;

Chateau-Gai Wines Ltd.___

equivalent of
half million pounds of

kilowatt

Trust

kilowatt

million

average man can exert

interests

Chartered

and

coal.

2.6

large insuiance

—

100

hours of energy, the

Canada Invest. Ltd._

Investment

*0.625 bl4

suing nuclear energy.
pound of fissionable fuel

One

Fossil

and

This indigenous

turned their attention to the pos¬
2.5

Water

principal

lack of fuel in most countries has

Celanese Corp. of America

their

of power.

source

1956

cially

carrying out such investigationsfof
fuel
elements, clad in. various
ways,
using different types of

Applications of Atomic Energy
sibilities

1.00

able

Co.,
11

page

actor

—Canadian $ §—

// Ltd.

from

Money
No. Con¬

Canadian

(1479)

thousand

few

kilo¬

are

now

to normal dis¬
tribution
systems,
such as
the
Calder Hall plant in England: the
power

land-based

Savard
Members:

Hart

prototype of the U, S.

submarine reactors;a small French

inc.

latest

the

The Investment Dealers'

eration;

Association of Canada

power unit" and
type to come into* op¬
the
American
boiling

the Russian

unit:

water one, which

The

—

TROIS-RIVIERES

—

other

large

United

Members: Montreal "Stock

Exchange

Canadian Stock

Exchange

Toronto Stock

plants'both

Kingdom

States

will

before

the

there

operation

commence

end

Throughout the length and breadth of the nation

the

the United

and

this

year.

from
lent

nuclear energy the
of 40 million
tons

annually,

about

electrical

Exchange

for

Plans

the

announced

in
Branch

1203

Phillips

Square

—

Jean-Talon

St.

West

ing

170 Bay Street, Toronto

United

Life

kilowatts.
CHICOUTIMI

—

DRUMMONDVILLE

SHERBROOKE

—

THETFORD

NEW YORK

—

QUEBEC

MINES
MIAMI

—

companies
which

States

ST. JOHN'S,

P. Q.

TROIS-RIVIERES

delivering

year

The

French

ment is also planning to

Geneva, Switzerland

London, England

;

largest Canadian life insurance com¬
one

of the leading life companies in

the world.

Serving the holders of two million

policies in North America and in 25

Govern¬

other countries.

large amounts of electricity from

tries.

SAVARD & HART LTD.

and

generate

the

other European and Asiatic coun¬

SAVARD & HART S. A.

pany

will

the

65,000

nuclear energy as are many of

BEACH

beneficiary of the Sun Life

Today, with $7 billion insurance in force, the Sun

provide 1.4 million kilowatts of
electricity, apart from the Gov¬
ernment-owned
Shiopingport
plant
which
will
be
operat¬

Offices:

Montreal

the

private

policy¬

their

construction

without

coal

reauirements.

civilian power reactors have been

HEAD OFFICE: 230 Notre Dame Street
West, Montreal

communities

of Canada.

eauiva-

40%

power

few

are

holder, annuitant

1975, the British expect to produce

Hart

year.

power

000 kilowatts last October. Several

CHICOUTIMI

QUEBEC

Savard

large

first

reactor is
the Calder Hall gas-cooled
one,
which commenced delivering 65,-

Montreal

SHERBROOKE

started deliver¬

ing power on Feb. 7 of this

230 Notre Dame St. West

into

When

all

operation,

uranium

and

will increase.

such

the

plants

get

demand

for

thorium1

Sun Life Assurance Company
WORLD
C

naturally

WIDE

HE AO

Canada

OFFICE

NTRE.AL

Two With Ashton & Co.

With Paine Webber

(Special to The Financial Chronicle)

Continued

and

from

Continued

page

Harvey T. Walker have

Peaceful

Thursday, March 28, 1957

from page 39

Canada: A

Present and Future

SPRINGFIELD, Mass.—Clifford
O. Leslie is now with Paine, Webjoined the staff of Ashton & Co., ber, Jackson & Curtis, Third Na15315 West McNichols Road.
tional Bank Building.
DETROIT, Mich.—Lois A. Bud-

man

Financial Chronicle

The Commercial and

(1480)

Dynamic Economy PropeHed

By Rich Resources, Broad Markets,
Sound Money

Applications

Of Atomic Energy

Cash Divs.

field

applied

engineering in
study is now
being made on a larger plant by
the same group with the general
purpose of producing power that
Canada.

will

Underwriters

Dealers

Distributors

competitive with coal.

plants

such

years,

may

well replace fossil fuelled stations.

Canada last year had about 21.3
installed
horsepower of

electrical

about

Government, Municipal, Public Utility

The

demand

creasing
It

and Industrial Securities

generation
billion

about

that

Bottle

per

this

year.

General

Established

generated
is 25%.

ROYAL SECURITIES

that

creased

also

CORPORATION LIMITED
West, Montreal I

Toronto, Halifax, Saint John, Quebec, Ottawa,

Calgary,

Edmonton,

Vancouver,
St. John's,

Hamilton, Winnipeg

Victoria,

Charlottetown

the

and

sequently

may

heat

in¬

ideas

Chalk1

the

AECL

see

electric

years

Members:

Montreal Stock Exchange

The Toronto Stock

Exchange

discussed

the

of nuclear energy

for the de¬
velopment of civilian use in gen¬
erating electricity. But plans are
use

Canadian Stock Exchange

have

already

being
of

source

made

energy

propelling

ships,

that

airoplanes

nuclear

power

ships,

L. G. BEAUBIEN S CO.

into

year

Members Montreal Stock

use

Exchange

Telephone: PLateau 2171
221 Notre Dame Street West,
MONTREAL I

Moscow
of

nuclear

that

nounced

normal

are

for

but

much

seem

using

MONTREAL

all

other

Trois-Rivieres

Hyacinthe

Shawinigan Falls

Sherbrooke

will

decrease

There

L. G. BEAUBIEN

north

The

may

manufacturers

liar

with

energy
source

Richepance

techniou^s

the

Wide

trons

St. Pierre

and

Miquelon)

tain
1.5

released

are

requires
the

one

chain

which

may

ura¬
neu¬

2.7

1.40

2.7

8.00

225

3.6
•

29%

2.00

6.8

oil¬

and

iron

4'-'-

1.00

Stores

Tar

coal

4.8

steel

Ltd.-___-__

and

meat chain

Chemical

tar

- -•

■-

1.125

39%

2.8

0.50

4.2

producer

cotton

and

operates

7.5

• ■ ~■

1.45

0.65

31%

4.6

5.0

mill

paper

0.60

•

;,■■■■

Quebec

Washing

Machine

Co.,

machines,

floor

washing

polishers,

air

circulators,

etc.

Trust

investment

"Electrolux"

Ltd.

«•-■%'■'■

;_;:w,

cleaners,

1.60

4.1

*1.00

9.1

0.85

1.9

39%.

3.0

9.4

18%

8.0

vacuum

•"

business

trust

Electrolux Corp.
air

and

yarns

Ltd.

purifiers

Equitable Life Insurance Co.
of

Canada

Wide

line

________

life

and

endowment

.
.

policies

Falconbridge Nickel Mines,
Ltd.

Nickel,

cobalt;

copper,

produces

steel

subsidiary

ture

Canadian

Corp., Ltd.
Largest

1.20

castings

Famous Players
operator

theatres in

motion

1.50

*1.50

3.00

b53

5.00

119

pic¬

Canada

Fanny Farmer Candy Shops,
Inc.

;

Operates large candy chain

Federal Fire Insurance Co. of

Canada
Sells

Ford

fire,

rain

Motor

insurance,

Co.

Canada,

Foundation

Co.

Canada

Ltd.
general

paper

Gatineau

■

4.4

1.60

32%

5.0

largest

1.00

15%

6.6

1.25

27%

4.6

depart¬

Ottawa

PoWer

Hydro-electric

20%

•'

Ltd.________

operates

and

yarns

fabrics

store

...

0.90

lumber

and

synthetic

Freiman,

17,
contractors

Companies, Ltd
variety

products;

4.2

manufacturer
.

Engineers

5.7

etc.

"B"

Ltd.

Automotive

Co
in

energy

Eastern

Canada

•'

at each fission.
♦

of these to main¬

leaving
be used for other

Continued

page

Quotations
price

reaction,

5 Add

represent

prior

Dec. 31,
0

3.9

co.—coal,

Electric

ment

10%

•

0.80

linoleum

_____

Clermont,

Easy

fami¬

of 2.5

process

range

Owns

Reactors

average

.■

faisur-

Donohue Brothers Ltd.__,___.

for fire

■fabrics"

fission

0.40

■■■'-

Dominion Textile Co., Ltd.__

Wide

235

'v'V

its derivatives

Fraser

the

5.7
*

„,r

.'Xv.;

Distiller

Owns

(

___

holding

con-

Breeder

primary

Co., Ltd.

dis¬

districts.

nium

Branch

Co., Ltd

range

products

Dominion

25 to 35

become

etc.

Co., Ltd..

company

cloth

doubt nuclear
may be a
much cheaper
of power in such remote

PARIS

(Territory of the Islands of St. Pierre

high

our

strucing reactors,

rue

very

cost

1.20
-

Steel

glassware

Operates grocery

mills per kilowatt hour and when

between France and Canada

seems

present

diesel-electric power is such
tricts

Financial operations

country

hooeful.

3.§

etc.

Dominion

from normal supnlies of power in

BANQUE

interests

motor

shielding

sibility of small mobile units for
use in developing power and
space
heating in mining districts away
our

Ltd._____

draperies,

variety

Wide

doesn't

energv

Fabrics,

variety of

Ltd..

reactor requires. The pos¬

.•••

19%

Dominion Steel & Coal Corp.,

promise at present of

nuclear

which

■

products

leum

de¬

new

owing to the bulky

cars,
*

land***

planning nuclear
ships.
Such devices
probably be costly to start

with

3.8
'

^.'-'V

ante,

propeller used in such planes. The

velopments, costs
with
experience.

Quebec

will

X ,!

and

-''.'V

wide

General

based reactor has driven
too

5.8

425
is

0.75^

structural

an¬

They have also stated that
a

16.00
,

machines

Economic Invest't

required.;j

operating re¬
propelling it.

Foundries

Operates

compared

not

0.70

Dominion Oilcloth and Lino¬

1.1

they have flown

but

5.6

Invest-

Dominion Insurance Corp.___

three

Dominion Glass

per

States., have

with
it

engines

Members Investment Dealers' Association of Canada

fuel

United

British

Investment Dealers

for

Vladivostock "

tons of coal now

actor

L. G. BEAUBIEN $ CO. LIMITED

will

refuelling.
They
announced plans for a v
locomotive, 164 ft. long, weighing
300 tons which will develop 8,000
horse-power and will run from

airoplane

„

which

operate

3014

V/.- (

Ltd.

also

The

Brussels

will

1.70

kinds

tapestries,

Makes

an¬

without

years

have

600

Paris

ice-breaker

and

lbs.

Ottawa

put

has

only 5 6z. of nuclear fuel

day

1.8

220

Towels,

and

being

Russia

4.00
'

Engineering Wks.,

Dominion

nounced that it will comolete this

Stock Brokers

and Canadian Stock

already

are

all

Dominion

operated on
Plains to build

execution.

•

and

cranes

variety
equipment

plants to put in
oil tankers and ice¬

cargo,

breakers

2.6

Ltd.

type of vessel

as a

energy.

4.0

0.60

holding company

Wide

safelv

can

nuclear

slope

Bridge Co., Ltd.__

Dominion

this

use

means

trains. The submarine has already

proved feasible

western

Corp., Ltd

Bridges,

Wide

far

and Anglo

Investment

steel

Propel Ships, Planes and Trains
So

50
'

gold producer

Dominion

both in Canada and abroad.

ROYAL SECURITIES COMPANY

Co.,

Mines Ltd

merit

■

stations,

power

1956

Dominion

development

great

nuclear

Dr.

publication

The

Ontario

steel

prospects in

power

River

395,

1956♦

Coal

Pass

producer

Dome

January outlined his

such

Dec. 31,

con-,

amount

needed.

______

Ltd.

conversion

the

reduce

uranium

B. Lewis last

will

Nfld.

electricty developed
quite reasonable

Paymts. to

2.00

A holding co—interests include a
complete line' of whiskies and gins

seems

burn-up

improved, which would

natural

244 St. James Street

the

tion

Dec. 31,

Distillers Corp.-Seagrams

ura¬

7,000 megawatt days per ton
and a conversion from the heat

31,

1956

business

of Canadian Rockies

for

1903

Dec.

in-

Ltd.

using

nium per year, if it was irradiated

Business

beverage

Co._

fiduciary

Nest

Crow's

energy

2,000 tons of natural

12 Mos. to

Based

Quota-

r,;.fW V.,'
Trust

Crown

the

for

caps

dustry

hours.

from

secutive

Divs. Paid

electricity is in¬

obtained

Extras for

-..u-;.—Canadian $ §—

Seal Co., Ltd.

Crown Cork &

Coal

for

probable

could

used

and

kilowatt

No. ConYears Cash

million

CANADIAN

Approx.
% Yield

Including

further

that

Dec.
date.

1956.

current

Canadian

Dividend paid

31, 1956 sale prices or the last sale
Bid and
ask quotations
are
as
of

Exchange Rate.

" ^

•

in U. S. Currency.

b Bid.

' '

*
t

-.tv

Volume 185

Number 5624

.■

The Commercial and Financial Chronicle

(1481)

Canada: A Dynamic Economy Propelled

Present and Future

By Rich Resources, Broad Markets,
Sound

Money

Cash Divs.

Approx.

Including
.

% Yield

No. Con¬

Extras for

Quota-

secutive

12 Mos.to

tion

Years Cash

Dec.

Divs. Paid

31,

1956

Based

Paymts. to

Dec. 31,

Dec.

1956♦

31,

1956

—Canadian $ §—

General Steel Wares Ltd.__
Household

rant,

utensils; hotel, reslauhospital
equipment;

and

0.40

♦

••''»,•

■

5.1

Canada,

Gordon

synthetic

„

Stores

"B"
subsidiaries

;

'•

0.5Q

6.8

dis¬

■■

British

*0.25

1.9

Co-

lumbia, Canada

Grand

eral
and

1...

commercial

stationery

&,-business

office supplies
throughout Ontario

bleached

newsprint and

2.9

1.60

39^

4.1

lignite

0.40

8V2

4.8

Great-West Life Assur. Co.__
health

life,

accident

variety

General

wire

1.0

0.30

6.0

0.675

3.2

•

f 1.20

4.6

metaL

Harwell,

variety

products'

ll7

burning

gallons

1.00

4.8

Companies Which

Dividends From 5 to

Have

Paid

Years Appear

made

Ltd..

in the

with

riched

Wide

variety

textile

ster"

0.90

3.00

seamless

and "Willon"

0.60

Paper

232

—

Manufactures

cluding

products

paper

containers

formed

into

thorium

232

Dauch

of Canda
Wide

boxes,

V/i

8.0

1.50

5.0

tend

When

the

longer
with

10.3125

61/2

4.8

in¬

than

the

miles

1.80

4.1

paperboards,

zinc

how

0.24

251/4

according to a
statement
by Sir John Cockcroft, ten

objective for future

6.00

7.2

1.40

4.4

products

Glaze

1.70

561/4

3.0

The

fusion

helium

Paints

—

1.325

•

5.1

enamels,

Assurance

Imperial
With

range

Oil

hydrogen, or its
isotope deuterium, into
a
possibility which was

life,

2.00

3.7

1.20

551/2

2.2

full

Holding
mfr.

Metal

0.675

II1/2

5.9

co.

Subs.

Can.

water

heaters,

equipment,

etc.

Quotations

represent

oil

the

price
Dec.

§ Add

prior
31.

q»

that

date.

2.20

401/8

5.5

trade

Canadian

t Adjusted

31.

1956

Bid

sale

and

ask

prices

the

quotations

last

are

The

atoms

atom

quantity

10«

explanation
stars

for stock dividends,

sources

while

is 3.5

sun

that

This

per

you

invest

over

falling
our

will

per

wish to buy

sell

Canadian securities, consult one

1014

largest
of

nu¬

our

member firms for the

produce

heat.

If you

10*>

One ton of

year

The

latest information before

acting.

consumption

about
In

109

few

Putnam

With

that

kilowatts

decades, Mr.

believes
will

our

re¬

ex¬

breeding, it is esti¬

our

nium will be five

page

of fossil fuels

hausted.

nvestigate before

The power, in
heat, falling on each

kilowatts

year.

mated

Continued

maintain

of
fuel, mostly coal and other fossil

Palmer

splits, distributions, etc.

public.

period.

world

present

the investing

of energy,

the
and

fuel

Exchange Rate,

service to

releases

sun

of energy.

source

Exchange have been giving

mile of the earth's surface

sale

paid in U. S. Currency.

discovered.

hydrogen

was

Asked.
Dividend

neu¬

day from the

fuels,

1956.

current

form

kilowatts,

per
Dec.

long

the

2.7
14

this

clear

Indus¬

Com

Exchange

even

helium

enormous

and

how

ago,

day on the hemisphere is 1.7

"A"

one

years

was

four

kilowatts.

ada, Ltd. "Ord."

Ltd.

form

per

Tobaqco, cigars and cigarettes

tries

square

Imperial Tobacco Co. of Can¬

International

fission

en¬

Ltd

comprises
oil enterprises

many

union

55
policies

subsidiaries

integrated

the members of

and the Canadian Stock

their large output of energy

Co.

Canada
term

tron

paints, etc.

Comprehensive

82 years

the Montreal Stock

heavier

dowment and

over

Energy

Ltd.

Life

For

re¬

1.0

Canada

of natural uranium

before the chain reaction

Imperial

fueling.

learn

envisaged

lacquers,

■

Other Sources of Nuclear

Mortgage Corp.

Flo V

uses

search.

Operates 234 branches throughout

single

debenture accounts

Varnishes,

the

breeder

money
on
first mortgage
security and operates deposit and

Imperial

reactors

The U. S.

supply the present needs of elec¬
tricity in the United
Kingdom.

producer

Imperial Bank to Canada

could

60%

Lends

♦

perform

Gold

Bay Mining &
Smelting Co. Ltd
&

re¬

tons of uranium per annum would

copper

would

thermal

scientists

burn

Hudson

Manitoba

the

the above sense, travelled over

then

Mines, Ltd.

Huron & Erie

"choke"

using natural uranium.

This is

gold

many

by absorbing neutrons just
ashes do in an ordinary fur¬

55,000

etc.

Ontario

the

are

reactor

corrugated

Hollinger Consolidated

There

permit

Paper Co.

plutonium

still to be solved, such
removing the fission products

Ltd

variety

type of

into the nuclear fuel

233.

enriched fuel and is not

Members of all Canadian Stock Exchanges

reactor. The uranium 238 is trans¬

made

and

special

Associates—

much

of Canada

Hugh Mackay & Company

surrounded

6.0

products

Hinde

Ltd.

of the

Investment Dealers' Association

using enriched fuel,
of'the ashes will still

Products

Ltd.

used

235

6.3

variety of automotive parts

Hendershot

uranium

submarine, "Nautilus," which

Members

the presence

"Axmin-

rugs

gallon

blanket of uranium 238

case

Haves Steel Products Ltd._L_
Wide

American

Affiliate—

action

products

Harding Carpets Ltd
Specializes

0.19

C a nudum

W. C. Pitfield & Co.,

have

you

oil

source

Co.,Inc.

Street, New York

HAnover 2-9250

This, of course,
and gasoline
it does happen when an en¬

which

producer

Hamilton Cotton Co., Ltd
■-

from

used.

gold

British

won't work

nace.

Mines,

30 Broad

problems

Consecutive

•Second Table Starting on Page 47

Ontario

the oil you

Hallnor

W. G. Pitfield &

mixture of

gallon,

your

pluto-

gasoline and oil say, for 20 miles
on
Imperial gasoline and finding

uranium
Listed

execution.

and

One op¬

using

with

car

specialize

speed, service and prompt

pur¬

is such a breeder type.
In
simple analogy, it is like running

motor

system.

Traders know that
in

plant being erected
Dounreay in the north of Scot¬

thorium
large

owing

constructed

coast-to-coast

private wire

power nuclear

with

Ltd._i__________

Brass

Maufactures

been

Plutonium

and
chemi¬

industrial

etc.

Hahri

NRX

actually found to breed.

but
10

materials;' gypsum

products;

the

key

jaster via

Proto¬

gasoline,

proc.ucts

fiduciary business

Building

(of

pose are called "breeders."

after

Gypsum, Lime & Alabastine,
Canada, Ltd.
*

cals,

a300

polipies

Guaranty Trust Co. of Can..

lime

3.00

and

Greening (B.) Wire Co., Ltd.
Wide

produced

your

coal

Pitfield's

should

land

distributor

range

such

centers

atom

structed, however, for such

un¬

Great West Coal Co., Ltd."B"

Wide

financial

nium fuel, has actually had a fac¬
tor. of 1.7 and the
large electrical

sulphite paper

Wholesale

into

Reach the Dominion's

trans¬

kind) than we burn up.
not happen in thermal

does

erated

Great Lakes Paper Co., Ltd.Manufactures

1.40

gen¬

forms

distributes

furniture

This

atom
is

fuel,

fuel

types have

Toy Ltd.-u

Manufactures

capture

sur¬

thorium

one

materials

nuclear

to the neutron economy
being too
small. Reactors designed and con¬

ing "& Power Co. Ltd
producer

new

the

Granby Cons. Mining, Smelt¬
Copper

formed

reactors

allied

from

than

capcon¬

producing

fuel,

fissile

different
32

which

have

Ltd.

tribute textile products and
.

4.2

goods

144

Mackay

Manages

6.00

rubber

escape**

nuclear

new

these

Ltd.__________

and.

through
by the materials used in

ture

232.

refrigerators, etc.

products

purposes such as loss

rounding uranium 238

Goodyear Tire & Rubber Co.
Natural

Peaceful Applications
Of Atomic Energy
struction,

■

Continued from page 40

reserves

ura¬

six times that

Continued

page

WRITE
4 5 3

FOR

ST.

FREE

FRANCOIS

BOOKLET

AND

XAVIER

ST.,

MONTHLY

REVIEW

jVt O N T R E A I,

•

/iAnns

a r\

The Commercial and Financial Chronicle

(1482)

Continued

from

page

Present and Future
McCUALG

CO. LTD

BROS.

Peaceful

Dynamic Economy Propelled
By Rich Resources, Broad Markets,

Of Atomic

Sound Money
Appro*.
% Yield
Quota- Based .on
tion
Paymts. to

Cash Divs.

MEMBERS

of fossil

The Montreal Stock

Exchange

The Canadian Stock

Exchange

The

Hence the

fuels.

special
interest in developing the use of
nuclear energy. The fusion of the
lighter elements to form heavier

Calgary Stock Exchange

ihelium,

not available

were

MONTREAL, CANADA

the

advent

Now

this fusion at
some

new

atomic

bring

This

MORGAN & CO

gether and

Jean P. Ostiguy

MORGAN, OSTIGUY & HUDON LTD.
Investment

Dealers' Association

Canada

.f.
ALDRED

for

'refiner

the

and all

and

natural

and

gas

ethical and
to

make

all

wish

main¬
most

But

today,
energy from uranium and
offers hopes of meeting
ergy requirements of all
to

increase

welfare

until

John

the

future

'.i'U

i-C

Ltd.

Mr.
the

Montreal

Lewis

Toronto

507
72

Place

Stock

d'Armes,

Montreal

Bros., Ltd

local

—

securities

member

industry

the

for

Canadian Stock

Exchange

northern

of the New

Investment Dealers' Association of Canada

f0.39375 171/2

2.3

69%

2.2

5.0

York

other

and

Ltd._

arena

Grain

Mr. Brooks is
in the firm

of I.

Owns

3.3

9.1

2.20

0,20

■

6.2

1.30

J'„"

0.50

6.1

flour milling;
bakeries, etc.

two Toronto

Ltd.

3.4

5.00

145

0.50

0.80

3.3

1.40

2.4

3.00

73y2

4.1

1.25

b32

1.00

4.5,

1.40

325/2

4.3

1.20

4.8

motion picture

Massey-Harris Co., Ltd

7.7

61/2

Complete line of farm
implements and machinery

McCabe Grain Co.,
General

Ltd. "B"_

dealings

grain

McColl-Frontenac Oil Co.
Ltd.
Oil

—

production,

refining

and

distribution

Mclntyre

Porcupine

Mines,

Ltd.

General

producer

Ltd.—

3.9

house for many
Eastern Quebec

supply

industries in

Midland & Pacific Grain

Corp., Ltd.

Pacific

Deals

grain

and

operates line '

elevators in Western Canada

Minnesota and Ontario Paper
Co.

Coast

Newsprint,

general partner

specialty

papers

and

products

Molson's Brewery, Ltd. ' B,'_
Montreal brewer
;

♦

Mr.

Agnew, in announcing the
of Mr. Brooks, said this
is the first new membership ap¬
by

the

new

Quotations

price

election

Exchange.

30% :

theatres

L. Brooks Secu¬

plication processed

handling;

other timber
a

1.00

4.2

name

Marcus Loew's Theatres,

Ex¬

rities Co.

operates Toronto sports
same

operation of

mem¬

Pacific

3.50

6.4

4.25

•

and

Owns

Exchange, announced
election of Irving L. Brooks
membership in the San Fran¬
of

Maple Leaf Gardens, Ltd.—_

Coast Stock

Division

0.27

■

WQXR

gold producer "

Ontario gold

Governors

1.00

Ltd.
Ontario

FRANCISCO, Calif.—Wil¬
Agnew, Chairman of the

Board

confection

Madsen Red Lake Gold Mines

New Member
liam

*1.50

large exporter

Stock

Fully integrated lumber business;

Stock Exchange.

7.1

food

MacMillan & Bloedel Ltd."B"

business activities.

cisco

Harbour 6101

b8y2

Holding company—newsprint,
limbering and power interest

has announced that the
sponsoring, Monday
through Friday, a new 23-minute
program, beginning March 25 at
6:05
p.m.,
over
Station WQXR,
featuring recorded music and a
"Wall Street Report" of the day's

West, Montreal

Maclaren Power & Paper Co.

the

233 Notre Dame Street

0.60

holding company for four
British Columbia companies

SAN

Exchange

8.0

0.75

York,

New

Mitchell (J. S.) & Co.,

The Toronto Stock

0.06

change,

Exchange

5.3

products

Harris, Upham & Co., 120 Broad¬
way, New York City, nationwide
investment
brokerage firm with

firm

Montreal Stock

1.00

Maple Leaf Milling Co., Ltd.-

bers

Members

8.0

2.50

0.20

Lucky Lager Breweries
(1954) Ltd.

of Los Angeles
Country Club.

35 offices coast to coast and

Oswald & Drinkwater

"self-service"

133

Chocolate

Club

Wilshire

Program
;i

6.3

Walter M. Lowney Co.,

Harris, Upham Sponsors

Pennsylvania and Ohio

Quebec City.

1.20

Inc.

markets

Vice-President and Sales Man¬

and

Private wires to New York City— Toronto

chain of "self-service"
stores in Ontario

Operates

28 years, was formerly asso¬
ciated with Gross, Rogers & Co.,

Exchange
?

4.8

Canada

grocery

Lighthill, who has been in

St. Peter Street, Quebec

16%

gold producer

Loblaw

His
include
prior affiliations
Barclay's Bank Ltd., London and
Paris, and the Investment Re¬
search
Organization of Kerr &
Co., Engineers.

Exchange

0.80

Shops,

Candy

Loblaw Cos. Ltd. "B"

ager.

Canadian Stock Exchange

Lighlkill With

over

Stock Exchange

9.0

chain in Ontario &

candy

Ontario

by Lewis J. Whit¬
Jr., partner.

ney,

0.80

Leitch Gold Mines Ltd

announced

was

Members

Quebec

sources

ANGELES, Calif.—Olaf B.
Lighthill has joined the Los An¬
geles staff of Dempsey-Tegeler &
Co., 210 West Seventh Street, it

Geoffrion, Robert & Gelinas

1.00

Gold Mines Ltd

_______

Retail

LOS

6.3

brewing business

Secord

Laura

en¬

Dempsey-Tegeler Co.

Association of Canada

4.2

Operates

Members
The Investment Dealers'

L70t!40i/2
'b.19''

Ltd

Labatt

Eastern

Olaf

4.0

Journal"

Wholesale hardware trade

Geoffrion, Robert & Gelinas, Inc.

Quebec gold producer

for mankind's prosper¬
be discovered.

can

Ottawa

—

Lamaque

of energy

ity

1.90

gold producer

General

peoples,
happiness and

their

Co.

———-—

"The

Ltd.
Ontario

thorium

the

2.8

:,;o j,

Kerr-Addison Gold Mines

then

nuclear

even

46y4

Ltd._

Kelvinator of Canada, Ltd.—
Complete
line
of
home
appli¬
ances, parts and repairs

for

*1.30

investment

Publishing

Ottawa, Ltd.
Publishers

the place we
future gen¬

world

development of
electrical com¬

type

living

peaceful development

our

2.9

trust

our source

shall require

102

-v.:'-'" '(■

Corp._

in Alberta

Management

*12.9325

producer and

,'r; •:

Management
panies

advance in mankind's

same

erations.

BLDG., MONTREAL, CANADA

oil

International Utilities

to¬

so we

centuries.

Co.

Petroleum

Journal

tain

101%

mills

and paper
the U. S.

and

American

South

outstanding
new
discoveries, it
will probably be made by a young

Toronto

pulp

Canada

International

complish this and then

energy will
raise the
standard of all peoples and

3.7

Op¬

—

Investment Foundation

is the

Members:

erates

produced for
the benefit of humanity.
A way
will eventually be found to ac¬

man

■

Holding and operating co.

method of bring¬

some

Morgan, O.B.E., M.C.

Direct Private Wire to

Dec 31,
- 1956

International Paper Co

re¬

nucleus

•

and operating eo.—Pri¬
operations at mines and
smelters
near
Sudbury,
Ontario

extract the heat

can

Canadian Stock Exchange

Guy Hudon

hold

ing about this fusion slowly

Montreal Stock Exchange

ALDRED BLDG., MONTREAL, CANADA

David Clark

which

1956*

mary

about

will

Dec. 31,

Holding

controlled rate by

means.

''3.75

Canada, Ltd.

until

must await the

Dec. 31,
1956

Co.

Nickel

International

bomb.

quire fundamental research
forces

Col. W. E.

12 Mos.to

—Canadian $ §—

These

sun.

earth

the

discovery of how

secutive
Divs. Paid

When the proper ingredients were
added to the bomb, the theory of
such fusion proved correct, as you

all know.

MEMBERS

Extras for

Years Cash

as hydrogen to form
needs the high tempera¬

tures which exist in the

276 St. James St. West

Including
No. Con-

jones, such

The Investment Dealers' Association of Canada

M&rch 28,19«>7

Canada: A

Applications
Energy

Established 1898

Thursday,

Continued from page

orior

Dec. 31,

represent
to

that

Dec:

date.

31. 1956 sale prices or the last sale
Bid and ask quotations are as of

1956.

§ Add current Canadian Exchange Rate.
Dividend paid in U. S- Currency..

■

Adjusted for Stock' dividends,

b£id.

Splits, distributions;- etc. -

......

.-""T

'
j

Volume 185

Number 5624

The Commercial and Financial Chronicle

(1483)

Canada: A

Dynamic Economy Propelled
By Rich Resources, Broad Markets,
Sound

Quota-

12 Mos. to

tion

Dec.

31,

1956

Based

Paymts. to
Dec. 31,
Dec. 31,
1956♦

1956

—Canadian $ §—

11
locomotives

1.00

6.7

and

production

Montreal Refrigerating &

Storage Ltd.

_____■

2.00

Moore

Corp.

Ltd.

forms, advertising
products, etc.

play

*1.60

Mount

3.3

dis¬
i

Royal Rice Mills____
.

'■

•

0.25

1.8

0.70

10*2

6.7

0.60

2.7

National Drug and Chemical
Co;

Canada, Ltd.______

Wholesaler

chemical

drugs,

Co., Ltd.___

Onlario grocery wholesaler

Railway

2.00

7.7

1.45

3.6

automobile chassis,

cars,

trust

also

business,
accepts deposits

Canada

Ltd.

\,
27

_____

Wire

5.0

mesh,
cloth,
weaving machinery, etc.

Copper

gold

Office

zinc

Ltd.

bigger

the

income

losses

matters

King Street West

EMpire 8-3081

Toronto

group

inevitable
this

sort

in
are

carved
out
of capital
and
not
/ taken out of income. It is only in
the petroleum and entertainment

we have rigged
up our
laws, precedents, and interpreta¬
tions, so that it is practical to
back a driller for petroleum or a

playwright

Broadway

two

spheres

permit losses

to be

While

difficult

A. F. Francis &

since

activities

Company

LIMITED

.•

taken against

would

Members:

extremely

nevertheless could

Montreal

be
The

through that losses for
certain types of business ventures

2.00

0.65

5.95

10.9

0.02

0.60

3.3

3.5

5612

Investment

Stock

Dealers'

Exchange

Association

Canada

could

be taken against income.
Failing this, all these small busi¬

find

and

the

entrepreneurs

going

unless

overcome their

ing

rougher

and

corporations
or

without

whole of it in

INVESTMENT SECURITIES

will

can

King Street West,

antipathy to back¬

individual

enterprise

The
Since

36 James

TORONTO

gobbling

Street

South,

HAMILTON

small

the

full swoop.

one

_____

Mutua) Fund

the

workings

nomics and finance

Co.
0.80

I6V2

4.8

distributes office furni¬
supplies

and
and

entrepreneurs.

INVESTMENT DEALERS' ASSOCIATION OP CANADA

producer

Manu.

___

Mfg.

risky

gold producer

Specialty

and

tougher

O'Brien Gold Mines, Ltd
Quebec

7.1

producer

and

copper

Normetal Mining Corp., Ltd._
Qruehec

2.50

wire

Mines, Ltd
and

better

because

nessmen

Co.,

wire

Noranda

»• •

Weaving

Ltd.
Makes

ture

f0.60

advertising signs

Niagara

little

THE

worked

Neon Products of Western
Neon

THE TORONTO STOCK EXCHANGE

current income.

etc.

National Trust Co., Ltd
General

the

MEMBERS OF

jft ^

lip service to the desirabiliy wof
doing something more for small
business, new business, inventors,

these

National Steel Car Corp., Ltd.

further

consumer spending.
Income taxes have their pecul¬
iar quirks elsewhere. We all
give

fields that

general merchandise

National Grocers

COMPANY

practical fact investments of this
type, however, do not interest the

Manufactures and distributes rice

products-..

savings will

LIMITED

in Montreal

Business

WILLS, BICKLE

stimulate

and
11

Operates general and cold storage
warehouse

encouraging
:

Montreal Locomotive Works,
Ltd.

Virtue Again?

% Yield

Extras for

secutive

Divs. Paid

page

Market—Is ThrKt

No. ConYears Cash

from

Savings and the Stock

Approx.

Including

Continued

Money
Cash Divs.

Diesel-electric

eco¬

are

adjustable,
it was not long before a
group of
remarkable salesmen d€Vbloped in
Wall Street or its

periphery

INVESTMENT

a new

device, the mutual fund. The plan
and
Listed

Companies

Which

Dividends From

Have

Paid

Mills flour,

feeds,

and

1.50

multitudes

4.4

cereals

____

1.15

27V4

4.2

Accepts deposits and sells deben¬
tures; invests in first mortgages

Ontario

Steel

Products

Co.,
1.40

5.6

plastic products

Page-Hersey Tubes,, Ltd._

3.00

991/2

3.0

Industrial pipe and tubing

Operates
in

gold dredging
Colombia, S. A.

Paton

Woolens

and

3.0

____

silk

and

0.80

bl91/2

4.1

1.40

24%

5.7

knitted

2.125

0.10

fl.00

5.3

electrotypes,
photography, etc.

engravings,

Ontario gold

producer

Investment—holding

1.25

8.0

Development, Ltd

13 y*

7.5

company—

River Co., Ltd.-

1.85

43%

4.3

Largest producer of newsprint on
the

Corp. of Canada, Ltd._

2.00

3.6

utility holding management and
engineering company
A

Premier

Trust

Operates

—

4.00

84%

4.7

0.08

6.90

and

corporations in

Quotations
price
Dec.

§ Add
*

Dec.
date.

3.25

b Bid.
-

;

1956 sale prices or the last sale
Bid and ask quotations are
as
of

31,

Exchange Rate.
paid in U. 8. Currency. ;
dividends, splits, distributions, etc. "
Exchange trading. - *
'

Transmission

Canadian pipeline

this time

especially

Company Limited,

Pipe Line, Interprovincial Pipe Line

Canada

Units

and

Stock

and

Northern

KIPPEN &

United

Members

607

COMPANY, Inc.

Investment

Dealers'

Association

Canada

St. James Street West, Montreal
UNiversity 6-2463

Direct Private Wire between Montreal, Toronto

depression.

amount

money

still

not very

significant in relation to
total corporate assets but the few
million

dollars

per

absorption of securities by
this segment of
society has been
a
fertile factor in capital forma¬
tion
applied to valid corporate

DEALERS AND

FOR

INSTITUTIONS ONLY

enterprises, money which other¬
wise might have been spent or
wasted

who

gold brick schemes.

available

would

the

have

never

It
f—7

I
0
\Jl/

the

or experience or knowl¬
medium for placing their
savings in complicated corporate
institutions.

•mutual

resisted

fund'

was

than

the

Continued

tion of

on page

Natural

Gas

Included

are:

pension

•
•

corporate manage¬
traditionalists,

this

many

stocks

•

Industry

Canadian

Delhi

Trans-Canada

Pipe

Canada.

Petroleums,

Lines,

Ltd.

Limited

West Coast Transmission Company, Ltd.

device

would

•

WISENER

AND

COMPANY

LIMITED
as

growing

accumula¬
tax-exempt savings which

through

the

process

Continued

page

KING

ST.

Members

tapped for corporate fi¬

corporate securities.
The pension trust, which among
the
enlightened corporations at

closely related to the growth of the

the

investing in

" '

markets

the

and

that

trading

Institutions'

could

maintain, for Dealers and

many

had

facilities

nancing

-";

the

5.6

1956.

ENQUIRIES INVITED

testing period for the open-end
fund during any prolonged reces¬

see

t Adjusted for stock
t Inactive issue.
No
-

Westcoast

Trans

attractive

are

Natu¬

mining and oil provide gqod

Ontario Natural Gas.

cross

better

ing since the

current Canadian

Dividend

capital appreciation.

stock

course

ments

Co., Ltd.__

that

and

fearful of the liabilities, could not

Directory

National Automatic

—

Association,

Merchandising

111.—(cloth)—$4.50.

dustry— Edited
Grabbe—John

Fourth

440

Inc.,
York

16,

Avenue,

New

J.—

Press, Princeton,
(cloth)—$3.50.

sity

Eugene M.
Wiley & Sons,

Y.—$10.

Credit

Instalment

—

Schedule

1, $125; Part I, Growth and Im¬

Foreign Commerce
Department of
Commerce — Superintendent ot

port, Vol. 2, $100; Part II, Con¬

Export

Comprehensive
—Bureau of

the

ference

$1.75;

Regulation,

Conference

II,

Part

Vol.

(paper).

Chronicle

notated

Finance

Economics

and

BOOK

BLUE

Princeton,

120 Alexander

Savings and
fices—

Street, Princeton,

INVESTMENT STOCKS

MOST SELECTED

LIST OF STOCKS

BY INVESTMENT

—

TRUSTS

Board, 101
Avenue, N. W., Wash¬

Science

DRAPER DOBIE
and

Sudbury

North Buy

ST. W.,

St. Catharines

Secretaries

Exchange

and

Windsor

London

State

United States. Govern¬
Printing Office/Washing-

ments,
ment

ton

C.,

25,

—American

ciation,

1606

R. Tolley — Na¬
Planning Association,
New
Hampshire Avenue,

Northwest, Washington 9, D. C.
(paper)

$1.25.

Technical

American
T.

(Agriculture

Association

Members:
Toronto Stock

Exchange

Canadian Stock Exchange

Latin

—

Arthur

Mosher—(National

Force

111.,

list

—

intendent

Offices:

Hamilton

Kirkland Lake
Val d'Or

Private

wires

Timmins

Noranda

Chibougamau

Rouyn

221,

leading Exchanges

Relocation

points

Section

aid

221

Housing — Main
available under
of

the

Home

and

Finance

Washington

25,

GOAD & COMPANY

Relief

and

Gas

Members Investment Dealers

Association of Canada

—

and

King and Yonge Streets

TORONTO

Utili¬

2.0

0.90

6.0

1.50

4.7

0.15

3.50

4.3

0.15

4.35

3.4

0.04

0.85

4.7

0.85

141/4

6.0

1.00

3.8

0.55

5.00

0.75

0.10

2.50

4.0

0.20

4.90

4.1

0.20

5.55

3.6

2.00

0.40

f 1.325

consid¬

has

portfolio

Corset Co.
ladies'

Ltd

foundation

* Scottish

Dominion

Invest¬

Ltd.

ments

Investment

trust

management

type.,

East Sullivan
Pledgees

Mines, Ltd

11.0

silver and

zinc,

copper,

pyme

Empire Life Insurance Co.
life insurance

a§

1.0

a75

co.

Erie Flooring & Wood Prod¬

"B"

Ltd.

ucts

Manufactures,

General

flooring

Bakeries

Ltd..
largest

Canada's

dis¬

and

processes

tributes hardwood

inde¬

pendent bakery operations. Makes
bread,
cakes,
biscuits
and
con¬

fectionery

Petroleums

General

Can¬

ada Ltd."Ord." & Class "A"
Oil

well

drilling contractors

Great West

Saddlery Co., Ltd.
distributor

Wholesale

and

mdse.,

19%

103

4.2

23%

5.6

0.70

bl0%

6.5

2.40

286

0.8

0.95

131/2

7.0

0.10

3.35

3.8

0.60

4.0

0.30

0.80

general

riding

goods

Hydro-Electric Securities
Management

Industrial
•

Ltd.

type

investm't

trust

Corp.,

Acceptance

—

Purchases
loans

acceptances;

gen'l

Ltd.

also small

business

insurance

Rights,

bronze

Subs,

co.

manufacture

aluminum powders

and

International Power Co., Ltd.
Holding

co.

public

controlling

Central & So.

utilities in

America

Intel-provincial Building
Home

improvements financing

Yearbook

1953

—

Alfred,

Lambert,

Inc

Manufacturers, wholesalers and
retailers of footwear goods

London Canadian Investment

Corp.

Documents

Investment

trust,

3.9

management

type

Lawrence

St.

Lower

Power

Co.
Quebec electric
♦

Sta¬

Publications—Catalogue
—U.
S.' Department
of Com¬
merce,
110
East
45th
Street,
17, N. Y.

Ltd

gold producer

Inter¬

States Foreign Trade

Mines

Luz

Nicaragua

Quotations
price

tistical

York

—

Holding

Service,
Columbia University Press, 2960
Broadway, New York 27, N. Y.
—$5.00. (Set of Yearbooks 1946
through 1952 available for
$24.00).

New

Utilities Commis¬

Nations

Human

United

0.10

garments

—

national

DOMINION BANK BUILDING

Water

Association

State Law Reporting
Company, 30 Vesey Street, New
York 7, N. Y.—Three separate
publications, at $5 each.

United

EMpire 8-3811

producer

gold

Manufactures

Administration

and

National

—

sioners'

Exchange

also

Dominion

From

Systems of Accounts for

Electric,
Railroad

Members The Toronto Stock

5.3

properties in Western Canada,
holding company

Ontario

Government Point of

Public

—

Uniform

ties

bl9

repairs; also makes
mining machinery

Delnite Mines Ltd

re¬

Service, 1313 East 60th Street,
Chicago 37, 111.—(cloth)—$5.

J. L.

1.00

International Bronze Powders

Local

View

investment

Ltd.

Agency,

quest.
Unemployment
the

3.1

Commonwealth Petroleum

National

Housing Act, presented in Ques¬
tion and Answer form—Housing

and

investment

store

connecting Branch Offices, New York and all other

Ltd

Trust
type

producer,

Documents, U. S.
Government
Printing
Office,
Washington 25, D. C., $1.25.

construction &

Silver

Agreements of the United States
—Department of State—Super¬

King Street West, Toronto—EMpire 6-9971

0.40

7.1

waterways

erable

Treaties and Other International

29V2

converting

Castle Trethewey Mines Ltd.

One

Treaties

Winnipeg Grain Exchange

bl4

in Canada

industrial

$6.00.

Calgary Stock Exchange

1.00

kinds

Canadian Vickers, Ltd

Planning

Chicago,

Press,

largest foil

Investment

Study)—University

Chicago

all

Foils, Ltd
and

Operates

Cooperation

trust

Howard

tional

6.6

3.4

manufacture

Management

Training Through Technical Co¬
operation — James G. Maddox
and

5.10

Canadian International

Latin

Studies

Case

—

0.3375

in air-conditioning and
refrigeration field from manufac¬
turing to installations.

Asso¬

Management

Cooperation

13.0

also

Inc.,
1515
Broadway,
36, N. Y.—$1.75,

America

Ltd

Ltd.

New York

Technical

3.95

Engaged

Oil

Strengthening the Research Effort

Industrial, Mining and Oil Securities

flooring

repair work

$1.00.

0.50

project

Canadian Ice Machine Co.

partment of State Publication.
6402—Superintendent of Docu¬

PorrColborne

hardwood

Shipbuilding,

Biographical Sketches—De¬

1314

cement

Specializes

plant

Portraits

—

dredging

Canadian Dredge & Dock Co.,
Ltd.

Politz—Har¬

Review, Soldiers

0.50

■

Marketing

Field, Boston 63, Mass., $1.00.

TORONTO, ONTARIO
-

Business

vard

Company Limited

The Toronto Stock
ADELAIDE

Truth

and

Research—Alfred

Members

341
Ninth Avenue,
1, N. Y.—70c.

York

gold

General dredging;

Report on

3.i

9
of

Guinea

Portland

Labor, Bureau of Labor

Statistics,
New

producers

Canada Flooring Co. Ltd. "B"

1953-54 Survey—U. S. Depart¬

ment of

JANUARY, 1957

Final

Industry:

largest

Canada Cement Co.,

Federal

Bank

Science and Engineering in American

1956

Ontario gold producer

ington 25, B. C.—(paper).

FUNDS

MUTUAL

Dec. 31,

31,

1956^

1956

Campbell Red Lake Mines

Oldest

AND

th?

New

Canada

Loan

Indiana

Dec.

Dec. 31,

products In Canada

Operates

offices

all

U. S. and Possessions
Home

Loan Association Of¬

Study

Paymts. to

Bulolo Gold Dredging, Ltd.__

N. J.—cloth—$6.

CANADIAN

tion

Ltd.

Nuclear Power &
Technology—Gerald Wendt—D.
Van
Nostrand
Company, Inc.,

12 Mos. to

Ltd.

Products
timber

Prospects

secutive

—Canadian $ §—

25 cents.

(paper)

Based on

Divs. Paid

—

Department
Sociology,

Princeton University,

Quota-

Years Cash

One

1943-1956

Section,

Extras for

British Columbia Forest

Meade—International

James

No. Con-

New
•

•

% Yield

Including

Europe—

Press,

Approx.

Cash Divs.

Zinner—Co¬

University

York, N. Y.

Negotiations for Benelux: An An¬

Dynamic Economy Propelled

Popu¬

and

Eastern

by Paul E.

lumbia

Growth and Import, Vol.

Part I,

Revolt

lar

rork

Communism

National

page

By Rich Resources, Broad Markets,
Sound Money

of Investing

New

—

Edited
Consumer

Canada: A

— A
Glos¬
Stock
Ex¬
change, 11
Wall Street, Ne\V
York 5, N. Y.—(paper)—Single
copies on request.

sary

Industries—G i d e o n
Rosenbluth—Princeton Univer¬

Washing¬

System,

from

25, D.

Language

Concentration in Canadian Manu¬

In¬

and

Reserve

ton

facturing

Business

Automation

C.—$6.

South Dearborn Street. Chicago

Government
Printing Office, Washington 25,
Documents,

1957

Merchandising,

Automatic

Continued

Dec.

§ Add
a

prior
31,

represent
to

that

Dec.

date.

1956 sale prices of the last sale
Bid ana ask quotations are as of

31,

1956.

current Canadian

Exchange Rate,

Asked.

„

b Bid.

t Adjusted

4.4

utility

for stock dividends,

splits, distributions, etc.

J Ci/.Li

Volume 185

Number 5624

The Commercial and Financial Chronicle

Cash Divs.

Canada: A Dynamic Economy Propelled

12Mos.to

tion

Dec. 31,

31,

1956

Quota-

Dec.

31,
'

tion

Dec. 31,

1956

No. Con-

Extras for

Paymts. to

secutive

12 Mos. to

Dec. 31,

Years Cash

1956 ♦

ladies'

1956

Dec.

Divs. Paid

Co., Ltd.

1956

tion

Dec. 31,

Based

Paymts. to
Dec. 31,

19564

1956

South American Gold &
0.32

4.50

7.1

Platinum Co.

hosiery

;

Gold dredging operation,
lombia, South America

;

________

31,

% Yield

Quota-

—Canadian 5 §—

Ltd.

Newfoundland Light & Pow.

1956

Approx.

Including

Paymts. to
Dec. 31,

;1956^

Mills

Manufactures

°o Yield
Based

Hosiery

"B"

Approx.

•

12 Mos. to

secutive

Based

—Canadian $ §—

Extras for

Divs. Paid

Quota-

Divs|. Paid
National

Cash Divs,.
Including

Years Cash

Extras for

Dec.

Cash Divs.

% Yield

No. Con¬
Years Cash

Money
No.- Con-

Approx.

Including

By Rich Resources, Broad Markets,
Sound

(1489)

1.42

40I/2

Stadacona

3.5

Mines

to.30

Co¬

(1944) Ltd.

0.02

0.27

7.4

Quebec gold producer

Operating public utility

—Canadian $ §—

Macassa

Mines,

Ontario

gold

Ltd.-—

/1.82

0.15

—

Nor-Acme Gold Mines Ltd—

0.10

washing

machines,

dryers,
lawn
choppers

mowers

and

State

food

3.00

;

0.20

3.20

1.10

20%

gold, silver, copper,
zinc, and pyrites in Quebec

Robinson Little & Co., Ltd.--

«Wide

variety of milk products

Wholesale

financing

retail

and

"A"

1.00

Makes

tube

containers

paste, shaving cream
semi-liquid products

y'/.v?

Rolland

9.1

blO

0.50

for

tooth

and

other

and

0.80

.4.50

Lingerie,

3.00

6.7

rayon

price

represent

prior

Dec.

that

date.

1956

31,

Bid

sale

and

ask

prices or the last sale
quotations are as of

operates

Western

-'k .V'

0.40

19%

yy-

2.2

0.40

38%

1.0

1.00

4.0

0.95

16%

5.8

0.50

1.2;

gas

and

co.

sells

veneer

in Vancouver

Plant

Owns and

Ltd.

operates Windsor Hotel

•

■■

in Montreal

2.00

17%

11.3

;

Wood Alexander
Operates

Ltd—

0.30

4.00

7.5

0.06

0.55

11.0

wholesale hardware

business

suits

1.00

19%

5.2
Yukon Consolidated Gold

other

and

Corp.
5

1.00

Gold

9.1
♦

represent

prior

Dec.

that

1956

31,

date.

Bid

sale

and

prices

ask

the

quotations

last

are

sale

Ltd.

Quotations

§ Add

____.

dredging operation in Yukon

prior

Dec. 31,

represent
to

that

Dec.
date.

31,

1956

Bid

sale

and

prices

ask

the

quotations

last

are

sale
of

1956.

current Canadian

Exchange Rate.
for stock dividends, splits, distributions, etc.
t Inactive issue. No Exchange trading.

1956.

t Adjusted

§ Add current Canadian Exchange Rate.

promotion,

development

Plywood Co. Ltd—

plywood.

2.1

products

Dec. 31,

•y

1.40

5.9

;

trust company

Windsor Hotel

—

swim

Quotations

price

1956.
§ Add current Canadian Exchange Rate.

____

and

Manufactures

price
♦

Dec. 31,

b Bid.

3.75

transmission
natural

Victoria & Grey Trust Co¬

Cigar manufacturer
Quotations

investment,

exploratioh

8.9

t :"
v'/'y" .V

Simon, H. & Sons Ltd

apartment houses
♦

Canada, Ltd.

storage,

distribution

Holding,

3.3

Newsprint and allied products

number

owns

0.15

Paper Co., Ltd. "B"

Silknit Ltd.

Operates

St. Lawrehce Corporation
Ltd.

5.0

Monarch Mortgage & Invest¬
ments Ltd.

and

High-grade bond writing paper &
related products

Brass, bronze, nickel and other
metal products

Modern Containers Ltd._i

0.22

dry goods & variety store

Ltd.

—

10.9

merchandis¬

lines

Co.,

18V4

Ventures Ltd.

5.4

ing of

(Robert)

2.00

6.2

company

Mitchell

Production,

Quinte Milk Prod., Ltd. "B"

quality face brick

Quebec gold producer

Produces

6.3
1

Co., Ltd——_

exploration

Ltd.

3.9

Washington

Ltd.

Mining Corp. of Canada, Ltd.
Holding,

3.20

Quemont Mining Corporation

Newsprint and related products

first

0.125

Union Gas Co. of

Mersey Paper Co., Ltd——

Makes

producer,

4.2

contractor

Sullivan Consolidated Mines,

•

Lead-zinc

0.50

Paving & Materials
1.50

Co.

Brick

3.8

General paving

Pend Oreille Mines & Metals

gold producer

Manufactures

Milton

0.39

properties in Manitoba

Mines, Ltd.
Maxwell Ltd.

0.015

Receives royalty from Howe Sound
Co.
through
lease
of
company

producer

MacLeod-Cockshutt Gold
Ontario

Standard

Greenwald Heads
Charles H.

Burgess & Co.

Public Relations
For Nat'l Sec. & Res.
J.

Burton

Greenwald

has

been

appointed Director of Public Re¬
DEALERS

INVESTMENT

lations

SECURITIES

National

Securities

Research"
SINCE

1909

Corporation, 120 Broad¬
New York City, sponsors and

way,

of the

manager

ties

Series

cording
Members

Toronto. Stock
Dealers'

Investment

Assn.

Exchange

J.'' Simonson,

Henry

Bay

St., Toronto

ac¬

Jr.,' Presi¬

of Canada

EMpire 4-84*71

•

funds,

announcement

dent. !,In

his

Branch—Brantford, Ontario

will

Previously
President

supervise

Assistant
A.

Mr.

Greenwald

the

Wharton

and

Commerce

War

Navy

and

Co.,
of

Finance

the

University
During the Ko¬
with

served

currently

Lieutenant's

the

graduate

School
of

Wood

Pennsylvania.

rean

j\(vj'wA, S'fdamb limited

new;

position, Mr.
public
relations, sales promotion, adver¬
tising and production functions.
Greenwald

255

National Securi¬

mutual

the

holds

commission

the

Naval Reserve.

New Kohn Branch
ELIZABETH, N. J.—Richard E.

y/ie ^Toronto

[ftcc/c foxcfianae

Kohn

branch

office at 279

Co.,

have

opened

North Broad

Street.

Manager of the Elizabeth office

J/ie dlcntveal
3/ie Canadian

Sxc/awpe
.sftcc/c SxcAanae
vice pr esi dent

president

\tice S$ jVcrra

^ecvcfe 3

will

Spring

Alton

Lake.

Plunkett

Mr.

for¬

Plunkett

Affiliate of Watt & Watt

Elizabeth
brokerage office of Theodore
Levy, and before that was with
Orvis Brothers, securities firm, in
merly

New

managed

York

City

of their Newark

Customers'

the

and

6 Jordan

Members

manager

office.

Toronto Stock

representatives

Stamler of Springfield; Dr. Eman¬
of

New

Union; Sidney Lans

Brunswick

Marenus

Paul

and

Canadian Securities

STREET

TORONTO. CANADA

WASHINGTON,
&

^/eleji/icne.

Company,

ing,
and

Watt & Watt

members

C. —Ferris

Washington
of

the

Build¬

April 4 will admit

Montreal

Security Dealers, Inc.

John S. R. Schoenfeld to partner-

KINGSTON. ONTARIO

slrn

sociated
time.

^s uem

Mr.

with

the

firm

for

Street, New York 5, N. Y.

London, Ontario

WHitehall 4-3262

some
1

Fort William
Port Arthur

70 Pine

73 BROCK ST

Buffalo

Members National Association

Philadelphia-Baltimore Stock

Exchanges,

New York

Incorporated

York

New

(

SfiwncA €ffice

Investment Dealers' Assn. of Canada

Private Wires Between

Ferris to Admit
BAY

Exchange

Winnipeg Grain Exchange

of Newark. Receptionist

will be Miss Joan Natale of Union.

200

Exchange

Montreal Stock

the office will include Mrs. Sylvia
uel Stanton of

Street, Toronto

■

Bell

System

Teletype N. Y. 1-374

The Commercial and Financial Chronicle

(1490)

them wanted

Continued from first page

the

notions, it is

national

the

to suppose that we can come

we seem

voice from the
wilderness about the virtues of our own system of govern¬
ment and our own social order and win friends in large
foreign countries crying

with

numbers, thus limiting the encroachment of communism
or

serving

of the other forms of totalitarianism of the day.
it is plain enough to the matriculate that our

any

Of course,

worship of it
peoples in other lands and often

concepts of democracy and our supposed

quite foreign to
without appeal.
are

many

Must

Also

Seek

its

find

difficult to

believe that that is

wish

throughout the world for

apart from such difficulties

forjthis dread of another world conflict—with

atomip weapons at that

—

international issues regularly

play secondary roles in the minds of the American voter.
It is all but inevitably so, since the economic interests of
the country are primarily at home, and the country is so
large and varied that most of its citizens have almost no
foreign lands or foreign peoples. All of this
quite the opposite of what used to be true
in Britain where the
very1 life blood of the economy ran
around the world. For many long years Britain has been*
under the necessity of exporting large amounts of manu¬
factures in order to buy many of the ordinary necessaries
of life from abroad since
they were not to be had at home
in adequate amounts.
Even

the

United

Nations.

'Liberal

(2)

This

wing

the

party

called

the

Republicans.'
"The other

afraid

are

that

Senator

the

includes persons like Hoover,
Knowland, McCarthy and other followers of the late Sena¬
tor Taft. In
general this group wants to cut down or re¬
duce many social
security and welfare programs; to get
out

reduce

limit

our

backing of the United Nations; and
spending both at home and abroad. This wing

of the party

is called the 'Conservative Republicans.'"

It is to be noted that domestic
in both lists and that when it

policies take first place

comes

differences take the form of attitudes
the

degree
ganization.

which

support

foreign policy, the
on
foreign aid and

international

Extraordinarily Difficult

difficult for

formulate and pursue wise courses in

international
active
arises

matters—assuming that we are to take an
part in world affairs. The extraordinary difficulty
out of the fact that there is little or
nothing in in¬

ternational
as

world politics has

total

$57

some

Savings

amount

sav¬

ings in these five categories alone
exceeds $570
billion.
Since the
dollar
depreciated
by
2.8%
in
1956, the value of these savings
declined by

increase

last

the

year

personal
in

was

expropriation
of

ment

the

in¬

effect due

one

population

seg¬

for

the

another!

Nor

this

was

inflation.
cans

almost $16 billion, so
80% of the $19

than

come

the

full

cost

Some 70 million Ameri¬

compelled by law to en¬
of their current income

are

trust part

to the

over¬

Federal Government in

turn for

re¬

promise by the govern¬
provide old age security.

ment

from

pursued

page

Oncoming Inflationary Crisis
And the Inflationary Mentality

plained shortly before his retire¬

skidded downward from

ment

President

the

York Federal Reserve

New

Bank:

developed countries which
have experienced hyper-inflation,
the central bank has

only to

tion the word inflation to

men¬

bring

public support
restrictive credit policy. When

measure

mention

for

trying to restrain

inflation

reason

boom,
apt to be charged wifn
crying wolf when there is no wolf,
to be denounced as apostles of de¬
we

flation."

popular craving for
the

and

AmeHca,

ployment"
theories

Americans
threaten

the

Under the

stance

what

"The

has

cal situation.

The

politi¬

inability Of the

"Newsweek"

ideas

maintain

prosperity,

mechanisms,

prevent

inflation.

The fatalistic

periodic recessions

The

point in

direction.

still

economists,

believe

that

lim¬

tain full

employment, even though
this "full employment"
philosophy

—maximum
credit

employment through

e x pans

spending

i-o.n

serious

and

public

even at the cost of

prices—has been

one

threats to the

rising

the

most

viability of

Western Europe? "The easiest way
to
conquer
a
country,"
Lenin
wrote many years

bauching

its

ago, "is by de¬
currency." Lord

Keynes, generally regarded as the
apostle of inflation, is said to have
that

the

write

tion.'^

another

British

also

The

danger

and for

ade,

inflationary

ployment"
public
3 I

Prof.

doctrines

indebted

unpublished
Keynes.

are

put

the

iri

and

politician,
leader

inflation.

businessman

calls

for

Officially,

out-right

they

are

all

opposed to inflation.^ They merely

demand
"all

that

sorts

the
of

government use
mechanisms"

continuous

his

In
the

past

dec¬

"full

em¬

dominating
Britain

this

has

statement

Wright
of
McGill
during a two-year stay
able to collect some yet

material

the

late

Lord

the

fact

lacks

dex remains

the

widely

inflation

seems

if the price in¬

stable,—even though

"stability"

other

may

due

coincidence.6

used

the

fiscal, monetary and general eco¬
nomic forces which-produce

thermometer is stuck at
70 above

the

outdoor

rise

the

four

past

Republicans

bad

the

and

years,

when

during

110.

happened

were

semantics,

claimed

cannot

stifling

what

that

mean

temperature

exactly

during
the

pleasant

does not

zero

high¬

The mere fact that the

prices.

victims of
they

pro¬

election that

they had conquered inflation.
Credit Inflation

the

Past Four Years,,

inflation

19S9-52

The

economics

carried

dollar

the

1939

cents

from

which

100

cents

1946

and

end

1952,

was

price increase of "less than 3%

year" (according to the 1955
edition) or "of less than 5% per
year"
(according
to
the
1948
per

edition) "need not

too great

cause

Actually,

increase in

2i/,%

consumer

would reduce the value of
000

annual
prices
a

$10,-

life insurance policy to $4,213

over

than

period of 35
50%

majority

years—a more

expropriation

the

people

the result of

caused

say

are

Korean War.

ernment securities increased from

billion to $88 billion, result¬

$18.8

ing in

inflation

docs

peo¬

of the dangers
not

mean

that

they are not affected by it. Con¬
trary to Lord Keynes who spoke
of the "euthanasia of the rentier,"5
inflation

far

from

"painless."
But it has a numbing effect during
its
early stages, which explains
why
more
than
100
million
Americans have not yet

250% increase in demand

deposits in

13 years.

inflationary

forces

the

past four years were of a different

Expropriated

aware

Federal Reserve and

commercial bank holdings of gov¬

The

that the American

not

huge Federal deficits

World War II and the

nature.

ple

the

within

generation.
The

hand, inflation refers to the

The

of today, Professor Paul

concern."

To the general

public "inflation" usually implies

probably

Samuelson, tells his students that
a

public

general

expanding

"Economics,"

most

textbook

the

"inflation"

meaning.

This

No,

for

the

term

van¬

awakened

MtCord

University who,
England, was

for

infla¬

remained

the

thought,

David

warning

that

the

definite

continue

book

people

unwritten,
with

that

ishing minority of out-moded

shortly before he died

must

warn

except

of Communists

labor

"social

and

Meaning of Inflation
reason

apathy

prosperity."

pseudo-economists and

politicians

The

One

orthodox economists."4

Stability

prominent

many

minds

must

obsolete

"maintain

Planning for Inflation
Some

recession

and

with

speak,

language of the economist,

Government

expanding

sorts

the govern¬

planning"

statistical

obligation

well

policy, its
with

charged
of

however,

"national

the

economic

inevitable

landslide

ment,

case

that there

notion that

seems

would

In the

inflation, namely

President

budget

officials
fraud.

corporation

such

rising prices,

1957-58

the symptoms of

Republican Party to gain control
of either Senate or House, despite
Eisenhower's

which

dangers

conceived

necessary,

private

payday,

heading "Ike's Blue¬

Federal

large

were

which

power

at every

nation.

described

using all

the

millions

planning:

wide-spread

added

and

print," Ernest K. LindW, for in¬

continuous

blinded

have

flation

must

too, the "full em¬

philosophy

Keyrtesian i"under- consumption"

apathy toward the dangers of in¬

and

purchase

security."

President's

Party Politics and Inflation
To the

a long
from the British predicament,

but in

f -

spending

crisis

one

the next.

way

are

this

the

The United States is still

"In

large

the government has
policy under which it

back to the people only part

pays

The

experience of any nation to guide

us. What is
always been a game played
by groups of powers each seeking gain for itself in this,
that or the other
part of the globe. Of course, none of

known

the

and

takes from them

"there

extraordinarily

Bonds,

The truth of the matter is that

Massachusetts

commercial

billion,

invested

benefit

Jo play their games

from

$35

billion

that

Yet for years

Continued

remarked

or¬

use

good if discouraging teacher.

ited inflation is desirable to main¬

group

simplified his analysis.

support and strengthen the

In this matter, too, current ex¬

ends.

own

perience is proving

votes.

in international affairs and to

ends. But quite

our own

deposits

banks, the savings capital of sav¬
and
loans
associations
of
about

and

arise out of this incredu-

of the earth

powers

when

(1) A group which "includes persons like Eisenhower,
Dewey, Nixon and Lodge, who want the Republicans to
keep social security and welfare programs, to be active

seek.

mu¬

ings

billion

foreign affairs take a place in the pro¬
victory, and
the fact that
the
"liberals"
of
both
parties, who
grams of various groups or parties, they are usually dis¬
promised
lower
interest
rates
and
cussed merely in terms of
support for the United Na¬
lower taxes, yet increased
gov¬
tions or large sums sent abroad in aid. When
George
ernment spending, generally won
out over the
Gallup prepared a poll on "modern Republicanism" the
conservatives, may
other day, he defined the two
major "wings" of the Repub- ^ ^tempt the two parties to outdo
each
other
in
spending
public
lican party in these terms:
funds to attract more
-

Obviously a program which contents itself with supporting the United Nations and giving away billions of
our dollars is
hardly to be termed a foreign policy. The
United Nations is hardly more than an instrumentality

course,

„

all

influence

our

103
bil¬

savings banks, the $50 billion

time

Middle East.

contact with

is, of

lion

tual

lity on the part of many other powers, the question of
how best to preserve the
peace is certainly not an easy one
in many instances—as we are now
finding out in the

and seek their

foreign policy makers evidently must not only
formulate wise policies but are under the necessity of
gaining support for them from a rank and file often in¬
capable of making any very intelligent decisions in these
matters—or at least are incapable without the aid of care¬
ful presentations and convincing education.
Naturally
this state of affairs offers great opportunities
to the
demagogue and of course to the pressure groups with very
special ends to reach. It used to be said that it was almost
if not quite impossible to make successful appeals to
voters in this country about any international question.
The so-called foreign issues usually turned out to be duds
vote-wise, so experience seemed to indicate. Save for a
natural desire to avoid another world war, the same is
probably true today—and the desire- on the part of the
rank and file to avoid war not infrequently offers a
fertile field to all those with panaceas of their own.

extend

policies, owned by
Americans, the $29M>
savings deposits in the

million

over

one
adds to the $400 billion
savings in the form of life in¬

surance

pre¬

and preventing one of the old imperialist

Many insist that
power

purpose

are being de¬
property by the

taking advantage of conditions to spread
further large sections of the
globe. Of
there are many of the old hands at world politics

course,

who

join the game with the sole

they

their

present policies.

of the

some one or more

Thursday, March 28, 1957

prived

was

from

control

which

Support

Our

Save

secondary to what

to the fact that

not

was

peace

countries

that people almost everywhere in the world (where

self-government does not now exist) long for what we call
democracy, and do not have it only because some tyrant
at home or abroad is able to hold them in bondage or
to

often

was

the vital interests of

Now

serious handicap to sound inter¬

semi-bondage. Thus

but avoidance of them

wars,

and

participants.

the part of the rank and file.
ideas is the supposition on the part of

thinking
Among such

many

major

concern

regarded

\As We See It
related

main

ness,

1952, to $48 billion in 1955, so that
the total public debt, as
o

index

stability

during
(1)

causes:

the

shown in

consumer

price

1953-55 was
due to two
considerable
increase
in

productivity which partly off-set the ex¬
pansion of credit, and. (2) a statistical
coincidence.
While industrial prices rose
(especially
the

rise

prices
4 "Newsweek,"
June 18, 1956.
5 John Maynard
Keynes: "The General
Theory
of
Employment,
Interest
and
Money," 1954 Ed. p. 376.

local indebted¬

State and

jumped from $30.1 billion in

prices
cover

114.8

rent, fi om
offset by

was

(from
were

(from
in

promptly

124.1
to
130.3),
a
decline in food
110.9). Once farm
stabilized and began to re¬
112.8 to

108.8

July),
rose

the
to

February

consumer

new

record

1956

price index

levels.

Volume

185

Number 5624

The Commercial and Financial Chronicle

(1491)
Table

I, increased by almost 11%

within

three

years.

Table I
Total Public Debt*

out

but

billion

Federal

General

In his

dollars)

pro-

survival

not

depends

paid

are

Motors

further

excess

increases

"millions"

depreciation

the dollar.

(At the end of fiscal years—
in

increases

wage

ductivity

State

western

extent

upon

ability to keep abreast of the

our

mes#

June

1!)46

19->2

1955

269.4

259.1

272.8

•

Built-in Inflators

sa§e. President Eisenhower urged
"leaders in business and labor to

think well

their responsibilities

Even

the

should slow down during the comings months, wages and prices will

2.4

6.9

13.1

to the American people," to "avoid

13.6

23.2

34.9

unnecessary

continue

limit
285.4

-239.2

About 500 recent wage agreements

320.8

•compiled by Tax Foundation.

Moreover, while the Gross National
come

Product

and

Personal

In-

by not quite 20% dur-

grew

ing the past four

years,

consumer

price increases," and
wage increases to increases

productivity. By an irony of covering
coincidence, however, the Presi- workers

dent, when reading the

message,

by
49%,'7
automobile
by 83% ,® real estate loans

paper

rise

pro|pe

five

for

ernment
ways to

search
save

additional
and man-

out

money

ers,

will

moreover,

of-living increases
the rise in

receive
as

consumer

40%.10

And nowhere in the message did tential labor
shortage. The sharp
the President make it clear that n0nulation increase
during
the

fhA--iq^
The
1955

nancecl

rfrnnnpritv

by a 20%

was

increase

consumer Hpht
debt, and
and

fi-

was

prosperity

the

<R91 hillinn
the $21
pillion

nrtnciiimcr

indllS4.rv

and

the

consumer

maustry, iahor and tne consumer
cannot drive

_rnmpnf

19o6

tne

iabor

unless the

prices

roonerates

P°Puiauon
postwar
rjsjnp-

increase
has

years

demand

during

ponds

OCfr»

.Since

1945,

personal

has increased

ness

fold.

amounts

indebted-

eastern railroads asked for freight produce

than five-

rate increases totaling 30% to off- tion.
set direct or indirect wage in-

now

about

$130 billion compared with about creases, and thus far the Interstate
$30 billion at the peak of the 1929 Commerce
C o m m ission has
boom.
In 1929, home mortgages granted increases of 13%, which
and consumer credit equaled 29%
raise the cost of rai) shipments
of
total ' personal
income
after by about 700 million a year, with
taxes; today 46%.
The trend is the demand for another 15% hike
similar in industry.
The indebt- still pending. The unions did not
6dness of the steel industry, for claim that increased productivity
instance, has increased more than justified higher wages. They sim200%, or by roughly a billion dol- ply threatened to cripple the nalars, since the end of the
;

t»

The

inflation

the

wave

the

past

railroads

credit

for

years,

in the

have risen out of all

wages

transportation

pro-

portion to increased productivity

corresponding
name

^^ariufaefurin« has increased
wSle

!
j

;* Table II, moreover, does not take
consideration fringe benefits,

which

amounted

1955.

the

of the

in 1947 to 20.4% in

12A major

benefits

12.9%

from

crease

fringe

companies

billion

to $36

case

in-

rate

increases

security,"

1955.12

Since

increases were pos-

sible only because of the continued
inflation.

Fr
United
"we

Yet most

little

show

Walter

1957

going to win the highest

economic
have

Mr.

Workers that

Auto

are

union leaders

concern.

wage

concessions

won," not through negotiatlons-"we cannot convince
ever,

General

Motors

part

Wage

without

The wage~Price sPiral situation
the

same

most

Aftb'f"Agreeing to
contract,
raise

which

-will

and

wages

"We

ultimately
benefits

by $1,000
in

a year, the steel industry
raised prices by a record

i956

$8.50

ton—following

per

upon

with

its

'price

increases to

come

major

contribution

the

"people's capitalism," the
"program of sharing the wealth
of American

industry."1® Actually,
perfectly

Mr. MacDonald knows

"fk
hid "Pe?.P}.eS
not based
•CaP!^tenM„ikS
"sharing
the wealth
on

American

industry,"

but

upon

inflation and the expropriation

large segment of the American

p£ople

The nation's school boards

not

are

througn

Nor

going
0

will

—m
7 $27,202 (Dec.

increase by such an

S40 631
$40,631

1952)

mil
mil

money will not creat

goods.
goods,

It can

only intensify demands for
supply of labor and
materials. That is outright infla-

the

current

the

pay

the

$64,163 (Dec. 1952)
(Nov.

All

taken

from

the

Federal

Re¬

calarv

commercial,

Outstanding

agricultural loans at Federal Reserve
banks in 94 leading cities rose
from $26.7 to $31.1 billion during 1956.
member

12 Chamber

"Fringe

Commerce of the

Benefits,"

members

time

when

the

industrial
13 "The

and

States:

hnnct

United

1956.

18,

Wail

street

Journal,"

Sept.

1986.

Study prepared by the Urbana Chapof

ter

the

American

Association

Under these

circumstances, it is

somewhat naive to
ness

Prices,

cannot

rests

"butter-or-guns" choice. The same
alternative confronts America
today, but both parties refuse to
face this fact. If defense spending
has to be increased by $2 billion,
shifted that easily
It other spending, whether for cars,
the tw0 political par- schools or farm aid, housing, roads

UDOn

tieS)
and
especially
upon
the
Republicans, who, unfortunately,

his

tbe

from

nartv

^Consumer

aimost

about

T+

•

42.9

1914

$0,223

1919

74.0

1914-19

1929

73.3

1919-20

59.4

1S29-30

1939

+ 72.5%

0.447

1914-19

0.9%

0.566

1919-29

—19.0%

0.633

1929-39

—

76.9

1939-45

+29.4%

1.023

1939-45

H3.5

1945-52

+ 47.6%

1.67

1945-52

1956(Nov) 117.8

1952-56

1945——

1952;.

3.8%

2.03

1952-56

l1qQrr

\i'o£

—4—

oi.O
ol.o
c*?

/fl
7o

0(77

onew

largely from in-

spending,

consumer

Bureau

price

index:

Labor Statistics:

1947-49=100.
Price and
"Monthly Labor Review."

wage

data

taken

20.5%

from

the

sectors

the

$2.3

some

spent

bil-

the

$16,000—

If onS? i

have

to
7,

Ti'

hospitals

reduced

oorre-

reduced

corre

Prevent a further
^ng
C°St*
instea<*
non-defense
spending

gy
both

•

of schools, factories

nartiP*

tlca

secfors^of^th** "1™—P
pcon"omvr ." 1"
thfl
™

for
-

labor
r

HannTexpenditurel

toe

same

and
d
u

42%

larger

welfarealone
weuare dlone

than

they

are
are

were

n/r

and

PosslbIe only to the extent that
f. e government provides addi-

tionary fiscal policy.
While, the Federal budget shows

totalI

public

center"
betwtn^the
R«<Sn=rva«
^
Table III
Total Public Expenditures
19|6 ^here4s little difference
far
welXre state Xlosonhv Is
(in billion dollars)
as

Hcaenism"erand
u,

"Npw

Presiden?

we e n

"Modern

Reoub

"MnHprn

mav

mean

•

Total

""V"1

uixiwxi

the New York

1955

g'ested 'that

this

merely

was

outfox

the

shift

Democrats

sue-

the

thus

the

left

move

("Estimated

left.

But

tactical

bolster

Republicans

what might
in 1955

move

the

seems

13.3

20.0*

15.0

21.6*

$96.2

position
to have

$114.2

the

welfare

whiIe

the

over-

the Federal

and local spending,

u u

Total

$72.2;

lead

making certain that productiv:

suffers

„„

distributed that
privation

seems

further

inflationary price rise

building irfcfustry.
Home
construction declined
16%
last
yet building costs increased

year,

than

the

5%.

News

According to

and

World

Re-

upon the prospective
by the inflationary
policies of Congress. Yet,
^he President proposes to pump
another
$1.7
billion1?
of
easy

credit

credit into the housing market

construction

almost

^iTi^ndwSgs since to end
Mr
Josep^HaversticVof the Nationai

whose

concern

supply and
suggests

Home

Builders,

limited

by the

save

money

and

should

demand"1®,

effect

that

provide

those

mortgage

further

expro¬

priated through inflation. Since
tbe end Gf ibe war the number
of non-farm

has

dwellings in America

increased

than

third, while the purchasing
of the dollar declined
by

power

about

110

through

one
any

to
to

]95Q.

Government

revenues

billion
Million

taxes

increased

from

104.)

$5.9
to

from

1946

isio

from

(The Tax Foundation:
on

surplus,

between
ueiween
rose

local taxes from $5.1

f-igure"s

+hf>

nor

jrcnpral

cffprt

8 School

enrollment from

Continued
16 "Is

U.S.

and

duo

$37.9
to

$14.6;

about
_

Facts

$13
.

and

Government Finance, 1956-57,

Buyers'

News

and

unon

thf»

$5-6 billion,

$1.8 billion

taxes

"a!

economy.

page

Strike

Coming?"—*
World Report, Jan. 18,

1957.
17

tax

stale

^afr*r

expenditures

popular, and dangerous

over state aid for schools, without regard to
long as we ^be need in each individual case

offset the $5-6 billion

$99.8
j
jj.o

Federal

bditon.

Federal Aid for Schools

planning, the Federal Government

ernment's

think in terms of overall national

$49.0

1.1-A

nation

has no direct control

Republicanism" as 'a philosophy
nAtr
that recognizes the Federal Covin

"to

additiS

million, which will

Another

whelming victory and the defeat instead of
of his party before him, President in order to
Eisenhower, explained 'Modern
15

ityis

Congress

give FNMA
--

capital

whole.

own

resoonsibility

and

mill

vear

policy."1®

enough to produce

$400
last

economy

the

by Tax Founda^iion)

phy in 1957.

it,

credit"

who

the end of the spending

become the official party philoso-

With his

ease

Association

tionarY and thus i detrimental to

adopt-

forcing them fur-

the

Federal

the

than

fnto
read

credit

ycaia.

Kroek

political

Mortgage

has

further

niceties of economic formulae and
the cold-blooded equation of mon¬

"Times" of Jan.

Arthur

National

pumped

Reserve

orevent

expansion

$74.1

Nor

1955-5(5

$72.6

"""

cehP ^'inflTflon

o£
.

$67.9

7.0

means

1951-52

$60 9

T oral

publLanism"
fhe gmdua!
Llipse of the conservative eleSPf the ijLtv Tt
rp.

1045-4(5

Federal

l£g*}.Z ^

tosident

Dp^I "

Federal

complains that "housing has suf¬
fered seriously as a result of the
policies of our money manager's

Eisenhower's

the

trying

Association

a"nd Tihp"Demorrafir"lihpra"]km"nf

conc^r^d

While
been

«>e 1956 inflation from to sharp
L co^ ^a medium^?dS^ in caHltal mvcstments, priced bouse has increased by
Wklte HJuse and Congress appar-. more than 40% since the middle
er}tly rdfHfe Jo recognize that in of 1950. a tremendous burden is

totos

•x„

(.consumer

increase the

S an 1

-t

a dangerous illusion, if Mr.

of the
-Changes

must

$500

inflationary impetus

all-time high.

designed

manufacturing

other

V1®w of the tight money market thus placed
■? ^ur^her sustained^Pricc advance homeowner

though non-defense spending'

has reached

the

resulted

creased

from less gov-

completely silent

1955

reduction in government spending,

earnings in

-Changes-

Prices

Year

full

spending has to be

the construction of civilian homes

Inflation
,

While

moved

ernment spending and lower taxes
to "affiiTnative" welfare programs.

have been

Average hourly

outlays

time

re-enlistments,

lion

---

Public Spending the Cause of

Fic!pn

have

^balnneeH"

budget:

even

inflation is to be
^ avoided.

_TrI

and

„hiftpd

Prpc.Sf1pn+

lpc.9

ho^

hospitals, must be curtailed, if

seem reluctant to assume this historical responsibility

ther to

1914-1956

economy. iYthe armed forces feel
that in order* to increase the rate
0f

hope that busi-

can
stop the wageprice spiral merely in response to
the President's plea. The
responsibility for the future of the dollar

program,

Table II

Wages and

increased

1953-54.

and labor

University Professors.

could^be

water

nurses,

Hence the lack of qualified facul-

"Bulletin."

serve

to $89,580 mil¬

1956).

data

squeezed from the defense budget
or not, but one need not be famiijar with tbe jnside operations of

bond issuesrincludinp almost $250

lion

deal

good

During the war, the American
people understood the logic of the Inflation in the Building Industry

The turning point in the Presi- spree in sight. During 4he last
dent s philosophy apparently coin- election alone, the voters anarmed forces 9ldfd Jvltb
tkfrRepubl.lca" defeat proved the gigantic sum of $2.7
amount.
The !n ^.9o4,
Message to Congress billion of new state and local
i—in January, 19oa, no longer prom-

salaries

jiil11vvv

eivpnnerind

the

and

have in

tion."

raise

Mr. Reuther knows, of course, that
ineoi

American
constituted

millions by pious

platitudes"—but
"crash-strike program."

auemptea

so many houses,
automobiles',
household*'"appUances"Vch*o"oTs'
manufacturing plants'and myriad
other things
o'the^lhingT
Cr'ea
Creating
more
t7ng''more

Modern Republicanism

salaries by
$1,000 during the next three years

to the Patman Committee:

can

wages

spending

The
public does not know, whether
W1XCM1C1
a

just

of chronic infla-

industries: jn contrast to the 1954 campaign
three year promises, the 1956 platform was

fringe

—*

payroll $7.35 bjke in 1955—with additional

™T^r°Wthe
1950 peak
of $22.1 billion.
These wage

ICC

of "national

into

the

and the ICC disregarded the harm
done to the economy as a whole

wage-

wage*

un-

granted,

are

pressured

reP6ated

system

luSS
^heir demands
^e

Spiral

Wage-Price

Carried

tion's

war.

total

state

2 7o reduction in Fedand local, business and
spending during 1957

Federal Reserve Board
chairman
Martin
attempted
to

nhn

"national security."

60%

goes for

reduced^ni

x-i

Non-defense Spending
Almost

Ration can be controlled only, empldjn^ent,
parties really wish to

8 dema"d tor. g00ds without explain

ex-

local

and

in^nMinnMihdebtStnS; tW7 Lea-rs .to :°use servicemen
wflf fuJfhe^ Lmf nossihw
and.
ir families—the average
ousiv weaken the rioUar
?BSUSJlt,per-h^UeLW?S
1iici^Sed
^eaKen tne dollar.
in 1956 from $9,000 to

GNP, due largely government
cooperates
py
ex
a
corresponding increase m the
to the 22% increase in capital in--panding credit. ...
.
-v'
labor force. The number of 5-9
vestments—by the>sale of hiore
The government's responsibility year olds, for
instance, is nearly
than
$8
billion
of stocks and to prevent inflationary price in- 40% larger than it was five
years
fq
Q ncf_inhrooco
cinup
r*rPa<3P<3
nnrtlClllprlV nhvinu<5 in
TTn+il
tHirbonds
(a
35%-increase
since creases is particularly obvious in ago. Until this age bracket ..mmhan
reaches
1954), and a 16% rise in bank-the case of public carriers and working
age, there will be a tenloans.11
public utilities. Within a year the dency for wages to rise and to

rise

state

" eas?

tne

resulted

for

the

to know that if defense

would sultice to stop the lnfla-

prices.

Increased Defense and

are

11 the two
st°P lt' A
eral» state,
consumer

I urge that Congress be
For a decade t0 come American
equally watchful in this matter ' business win be faced with a
popower.

deficits
level,

defense and foreign aid
spending,

cost-

result

peo-

■ +

Spending Within Our Means

by about 40%,9 and total loans of
commercial
banks
by - almost
•

ai?d„other benefits for older

ple*

million

automatic

1957

heyday

hl^ extensive welfare program in
order to
£rot^:J the "Pensions

time.

some

than

increases

wage

for

skipped the statement, "Through than $700 million, irrespective of
the next four years, I shall con- business conditions and increased
tinue to insist that the executive efficiency. Some 3V2 million work-

short and intermediate term credit: departments and agencies of gov-

increased

In the

make it clear whether he would
willing to sacrifice any part of

inflationary boom

State

own."

paternalistic welfare state philosophy more clearly. To be sure,
the President also called for "a
sound dollar,"
but
he
did
not

time.

our

Local

Total—

fault of his

of the New Deal, President Roosevelt could not have expressed the

technological, scientific, and social
problems of

of the Union

civilization

large

ury

According to the Budget, the Treas-

buy another

$100 million

cu
°",,1VU
WWUIU
ENMA P'1
preferred
stock, which would
enable the latter to sell $1 billion of debentures
to
the public.
In addition, the
President wants the Treasury
to
lend
ttmiuia
$700 to the FNMA.

cu^

18 "The

1956.

Wall Street

Journal," Sept. 12,

Continmd from page

„

Under the present system, most of
the farm aid goes^ to the prosper1953 and 1956, and will continue ous top 46% of- the farm populato increase during the next decade, tion, with subsidies running above
and since local tax resources are a
million dollars annually lor
supposedly inadequate to pay for some highly mechanized enterthe
needed
building
program, prises, while the 700,000 submaiPresident Eisenhower proposes to ginal farmers benefit little. Neither
spend during the next four years Congress nor the Department ol
rrrore
than $2 billion of Federal Agriculture
know
how
many
funds.
^
f
farms could operate profitably
Actually, local resources after without( subsidies, but Congress
proper adjustment of state laws, pigeonholed an attempt to limit
ore adequate, with few exceptions,
subsidies to $25,000 per farm, and
to
provide school facilities for nothing in the present farm aid
educating the young to become program will assist the 700,000
'Scholars, gentlemen, and citizens." submarginal farmers to find a new
They are not adequate, however, existence.
.
in some instances, to provide at
Housing, school and farm subthe same time for a vast variety sidies are only three of the literally
of educational frills, such as pro- dozens of welfare projects hidden
fessionalized sports, scantily in the more than thousand pages
dressed drum majors, expensively ■ of the budget which has grown so
uniformed
bands and
elaborate big that nobody has any clear idea
"recreational" facilities, which ab- how much waste it contains. Sensorb at least 20% of the nation's ator Douglas thinks that expendiKindergarten to college increased
from 35.4 to 39.4 billion between

cost of

"education." If local businessmen
have the money • to finance - uniforms
for high school

tures could be
Senator Byrd
$5 billion, and

bands, should they not be expected
first of all to finance the necessary

admitted

-classroom facilities?

Federal sub-

that

examining (the budget) seriously
ought, to find some place where

might

dollar,"

another

thing else, are a most wasteful way

but he quickly shifted the respon-

of providing local facilities. As Mr.
Alfred
A.
Driscoll, the former

sary

recently

overhead

dollar.

the

making

"It is

The Role of the Federal Reserve

22lk cents is consumed

Federal

the

unneces-

spending to Congress:
their duty to do it." 1
-

pointed out, "every time a dollar
is granted to a city for slum clearance, some

save

for eliminating

sibility

jn r1g general'whirl of welfare
spending and inflationary
psych0sis, the position of the Federal

expense

available.

For low-cost

housing the broker-. Reserve is precarious. The Board
0f Governors obviously did
not
'♦cause'' the increase in ^interest
eidies might buy 80 cents or 70. rates
and
the
present
"tight
cents worth of classroom facilities, tnoney" situation, as some politi-

fee is estimated at 39,9 cents.
A Federal dollar for school subage

but it will certainly contribute to
a

the dollar.

;

labor

eians,

further lowering of the value of

businessmen

tried

tionary

tide

summer

stem

the

Nor did it prevent

from

Council

the

new

head

Economic

leaders
have

and

even

•

The
shortage of funds is the Result of
charged.

nation-wide - over-spending
and
undersaving.- Total Federal Reserve credit amounted to $27,156
180,000 teachers. Another 80,000 million at the end of 1956, comiacfc adequate training, and close" pared with $25,825 million at the
to 100,000 are expected to dr.op out, end of
1952. In the meantime,
within the next 12.mpnths. "With, reserve, requirements
were rethe government adding to the in- auced, adding another billion to
Stationary pressure,, no conscien- excess reserves and thus to the
Moreover, there is not merely a

qualifications

Continued

■

gen¬

would be among the first to ad¬
vocate an easier credit policy to
counteract tendencies toward deflation" 20
This is

dangerous attitude at

the present stage of the business
cycle. As the experience of the
past few years has shown, an easy
credit policy to counteract temporary deflationary tendencies is
not "anti-deflationary," but in the

VV*

the

greater vigor.

even

that

belief

with

future

Theirs is the

freedom

and

eco¬

stability are. incompat¬
wait on the one
for unemployment and de¬
pression to appear, and on the
other they scan the horizon for
They

hand

Clouds

the

inflation.

either

event

they have their way,
business and banking are to be
made the scapegoats and govern¬

statesmanlike

and

Dan„.r<5

TemiJorarv Recession

Da"£®rs 0 a ®m^° ary Ke®<; S10n
As long as the boom continues,
mjl£ credit controls will not meet
with doo much opposition.
But

present a distinct possibility after
two years of inflationary excesses
—the pressure on the Federal Re-;
serve

to. provide more credit will

increase

quickly.

Yet,

while the

suffer from tempounemployment, the inflationary
pressure
will continue, and
prices and wages may rise further.
In such a situation, the full em-

economy may
rary

ployment equilibrium is not restored by easing credit, but by
permitting prices and wages to
decline from their inflated levels,
Dr. Saulnier's suggestion to

coun-

teract

muster.

can

planning

that

stands

use

center of

our

since

very

problem. Today and

the

Federal

Reserve

System regained its independence
1951, our economy has been
operating under a flexible mone¬
tary policy—a policy which per¬
mits interest rates and the avail¬

sponse
on

funds

vary

re¬

to changes in the pressure

banks and the money markets.

Monetary policy has become the
economic governor that helps, to
set an over-all limit on the pace"
of our expansion. Fortunately, it
is a governor that responds auto¬
matically to the actions of in-~
dividuals and the business com¬
munity, and is not imposed arbi¬
trarily by some higher authority.
One of the great merits of mone¬
tary controls is that they remain
compatible with individual free¬
dom.

lion.

The Farm Aid Program

by about 19% to $89,580 milIn

addition, the velocity of
consider-

bank deposits increased

costly-and the most ftW

irrational welfare scheme of them

;hown

in Xable IV.

Table IV
The
fiction of "parity" prices disre¬
Increase in Bank Deposit
gards the fundamental changes
Turnover
«*ftrich have taken place in Amer¬
New
6 Major
337 Other
York
ican agriculture. Due to mechani- Period
Centers
Cities
all is the farm

-zation

scientific

much wheat

figs

seems to

indicate that the

administration
is
thinking
in
terms of renewed deficit spend¬
ing to counteract a slowing down
of the boom.

aid program.

farming

of land produces about twice

acre

and

remark

in 1914.

or corn as

ready for marketing in
tialf the time, chickens lay almost
iwice as many eggs, and cows give

1955-56

7.9%

1953-56 34.0

1948-56 71.4

are

Federal

Source:

6.2%
13.3

15.9

31.9

Reserve Bulletin

if the Federal Reserve

fact,

kind

58)
dent

services

budget

that

the

provides"

the

declared

(1957Presi¬

confer¬
ence, "we have got to spend that
kind of money." Yet, on the other
hand,
if business slows
down
"compensatory spending" is to be

7.4%

34.3

"As long as the people demand,
in my opinion deserve, the

arid

press

increased in accordance with the

a^^r^hree^tim^'a^muchwere free to Pursue a wholly "flexible fiscal policy" doctrine.
SLfopp
1939
alo^P
rational monetary policy, it could It is this type of policy—welfare
S
•? ? i
average be cr^icize(j for not having taken spending to the limit during times
productivity
of a farm w-orker has more drastic steps to stop the of prosperity, and more compendoubled. It has increased little
+•

But the Federai Reserve

satory spending during a rbcession—which Secretary Humphrey

mn^ed 3onps
ones. ^Tnrpnvpr^~
Moreover, about

is not free; it is subject to constant

warned will lead to "a depression

third

cnarginal

farms

but

tripled

aiuzed

today's farm

population

impeSfrom 1 n°tLPnar^JphseiriHinSn
farming.

nlnf of "parity '
The concept

has thus become

largely meaning.

QQ^0n*
i

are

•

raisea

about

Pr°M?-C

two

million

fann

enterprises; another 10% by
JL6 million marginal
farmers; while
the remaining 700,000 submarginal
larm

families produce only 2%.i9
for

♦neat:

montlls

political

"Economic

Economic

Polirv

for

Agriculture," January 1956,

Devei.oAmerican

11.

the

past

"Thp

nressure

uolicv"

accordin^

hard

the

SS&r^pSktfS? tefnSin^
was "a crusade against full prosperi+v" which "increased the debt

^den
settled

that will curl
a

your

hair,"—or to

chronic inflation that will wipe

the savings of the American
People and gradually destroy the
foundations

the

American

heavier

cost

small

his

Economic

Report,

the

.
.
and swelled the in- President pointed to the continordinate profits of a few lenders ued inflationary dangers, but just
°f money." While the Republican as he shifted to Congress the replatform endorsed "the present sponsibility for budgetary re.

policy of freedom for the Federal
Reserve

tion

System

and

to combat infla-

deflation by. wise fiscal

policy," this official
statement

did

not

pre-election
the

prevent

straints, he charged business and
labor with the task of maintaining "both a high level of economic

activity and stable prices." Government fiscal policy alone, ac-

Vice-President and the Secretaries cording to the President, cannot
°f Labor and Commerce from
attacking the Board Of Governors,

20 "The Wall

1956.

at a

High Level

A$ you know, the money mar¬
the past two years have

over

Street Journal," Nov. 29,

all

end, both bor¬
a balanced
growth, in. which all

and lenders, is

rowers

growth
parts

the

—

of our

harmony,
forward

outruns

its

expand

economy

and

part

* moves

rapidly that it badly
market.

think

might be helpful if we look at
the record over the past two
years
in

the

light of this objective—to

wherein

see

lay the plusses and
have encountered •
minuses."?
*
r / '

where
some

may

•

.*;:'

•*

;

Rising Credit Demand

•>

Thie. major increase in credit in
the past two years, of
course, has
gone to business. This is not surA
prising, since the principal func-'
tion

has

been

commercial
to

been

banks

and

industry.

It has'
to observe1

interesting to me
however, how this

the years,

assistance

has

gradually

changing. Three decades
I

always;

give/assistance

been

ago when

first traveled around the

coun¬

try, the biggest job of the banks
to help meet
working capital
needs, much of them seasonal in

was

nature.

Today these seasonal re¬
quirements have become much

smaller, and

demands

new

arisen to take their
funds

needed

for

have

place—chiefly,
industrial

pansion.
As

•,

cities,.' across
phis at that

typical

the

of many

country.

Mem¬

time .was. primarily
distribution center, with large,

wholesalers,: whose representa¬
tives

traveled

the
sqrrounding
selling goods /to the
retailers. / A substantial'paft of'

countryside
this

business
The

was >

handled

oir

Wholesalers borrowed,

from ' the' banks

carry

the' re¬

tailers

retailers

carried

the

and

their customers in turn.

Once the

erqps were harvested, debts were
paid all along the line. But by
that time
the yearly cycle re¬
quired commodity merchants and

but because the demand for funds

carry

has been

all this is

under

sure.

so very great.
Aggregate
bank loans in this period have in¬

creased

by $21 billion,

Interest- rates

30%.'

almost

have

risen

substantially, and prices of bonds
and other fixed interest bearing
obligations have fallen. The de¬
for

mand
so

credit has indeed been

pressing that in order to

vide

than

banks

$11

have

billion

sold

pro¬

less

securities—a

good proportion of these at

loss.

changed. The Govern¬
through
the
Commodity

ment

Credit Corporation largely carries
the harvested crops, and id
any
event the farmers' buying powler
is

now

to increase

Yet
gers

this

which

inflationary
one

you

pressures.

of the very

dan¬

and I must

con¬

stantly guard against if we are to
help preserve our free society.
The task of restricting credit in

has

become

gain
essential
growth, is indeed

substantial

indus¬

are
they made solely for
working capital. Industry in
Memphis and in hurdreds of other

cities

across the country has been
modernizing and expanding, and
this growth has only been possible

because of

help received from the

banks.

Actually,
credit

this

when

demands

look

you

the

past year,

pattern shows up very
One of the major factors
borrowing last year was the
huge
capital
expansion
under¬
taken by industry.
I don't need
new

clearly.
in

relate

the

details

this

you—of the great burst in spend¬
ing for newT plants and for the
introduction of new products and

lied

nor

dustries

which

corporations.
Bank loans
longer primarily seasonal;

new

and

income

trial city with much local inaW®
try as well as plants of large na^

high level economy, of deter¬
mining which groups, which in¬
a

important

total

people. Memphis is no longer
chiefly a distribution center. It

tional

tion, but would only have added
to the bidding for labor and acted

less

the

our

are

will agree with me
that with our economy operating
at a peak level and under full
employment, it would have been
folly to have seen credit stretched
any
further. To have done so

much

relation

have

I think you

to borrow in order to
the grain and cotton. Today

processors

Today

result many banks
equal to 60% or more
of deposits, and they have moved
to a point where some might feel
reluctant to reduce* portfolios of
government bonds any further.

ways of doing things.
Tra¬
ditionally our industries have re¬
largely on internal sources—
lifeblood
for on depreciation and retained earn¬
delicate one, ings—to finance such capital out-

ventures

are

;

example, Memphis, Tenn.,

30 years ago was

ex¬
■

a growing pres¬
Money has become increas¬
ingly tight—not primarily because
of action by the Federal Reserve,

operated

would not have increased produc¬

P oblem of agricul- business

*^ti

spiral

wage.prjce

has

Loans

kets

calling for statesmanship of the
highest order. The objective lof

credit.

over

the

ability

r V

commerce

•

Bank credit and its proper and
effective

ever

a
"tendency toward deflation" "with an easier credit
policy" would, in the long run,
merely increase the chronic inflationary pressure.
'}. "
•: in- the Economic Report, too,
one finds. an omirjous> reference
to "flexibility in fiscal policy
to counteract inflationary and detious person can advise
young lending capacity of the banking flationary tendencies."
Since the
men
and women at this time to system.
Within 17 months, be- prevailing fiscal policy is clearly
■f*o into teaching, one of the least
June 1955 and November not designed to counteract the
1956, loans of commercial1 banks present inflationary pressure, the
inflation-proof occupations.

The most

nomic
ible.

Americans.

Hi All
EfAltAfttl?
Ml A JDUIIU llvVvl CivVIkVlllY

the Federal Reserve in its anti- ing completely subjected to con¬
These
inflationary battle. "I am on the' trol by the government.
anti-inflationary side" Dr. Saul- individuals, have had a taste of
power
in
the
past
and
would
nier-recently explained, "but I
return

million

100

HI «fe

adviser a man who is not likely to
take a strong .stand in supporting

rose

than

lasting prosperity can be built
such a philosophy.

page

If «|||

again chosen as his chief economic

its course,"—the

run

has resulted in the depre¬
ciation of the dollar by 50%, and
the partial expropriation' of more

years

being excessively

from first

have

"drift" which in the past 18

same

would

the economy

for

yet

Thursday, March 28, 1957

not yet

erally."
Thus, for all practical purposes,
the
President
accepted
as
un¬

fjrst-rate economist, but the fact
rPmains that the President has

120,000
classrooms,
America is also short at present

shortage

restrictive

in his opinion "the tight money
PQRCy>» Gf
Federal Reserve
,tjjas g0ne j-00 far » jvj0 one denies
gauinjer»s

sufficient

restraints

court the risk of

Advisers,

though he made it clear that

even

not

stronger

the

would

the President

appointing Dr. Raymond J.

Saulnier

far

and

avoidable that "the moderate up¬
ward drift of the price level may

inflationary trend, and
monetary controls are
concerned,
"moderate restraints
the

stop

infla¬

the

spring

1956.

long run inflationary, since the;
ment
is to take over complete
additional credit pumped into the
direction of both. It is the job of
economy to prevent a temporary
cut by $2 billion, slowing down of the boom is not commerce, industry and finance—
all three—to see that this never
suggests a cut of withdrawn as the boom resumes
happens. To assure its prevention
even the President its forward speed, and thus acts
calls for all the care, .foresight
"anybody that is as additional inflationary fuel,

sidies, whether for schools or any-

Governor of New Jersey,

when

the Oncoming Inflationary Crisis
And the Inflationary Mentality

Chronicle

The Commercial and Financial

(1492)

Volume 185

Number 5624

The Commercial and Financial Chronicle

(1493)
lays. But for

several

years

now,

blankets.

been

flow, and business has

required

borrow

basis.

Last

the

year

aggregate funds required for expansion and modernization from
all outside
sources, including commercial banks, rose to a record

$5 biUion.
This

been
and

,
*

itself

too

However,
1
^

for

the

markets
i

luemseives

banks

handle.

the

racing

increase

tal; needs

have

not

great many companies

xuuiiu

might

difficult

capital

last

very

was

even

that

this

sig-

the very heavy
borrowing of 1956.
It is interesting to look at bit
more

carefully at this record in¬
crease
in working capital needs.
little

rise

than

represented

ment

But

half

the

or
up

close to
in net

..the,S„eJrends wil1

watching

1957.

under
in

are

already

somewhat

ot the

one

that
brought

tighter

control

industries.

business for certain lines

picture

thing

one

again.

the

mature

some¬

you

know,

characteristics

stage of

for

But tnG

receivables

else

This

principal factors that
some
slowdown
in

caused

collections

boom

slow

the

business

down.

Very often it is difficult to pin¬
point the exact reason for this.
Thus in recent months the
.

excuse

has been offered that
in

payments

has

been

one

slowdown

some

companies

increasing
volume with less borrowing. The
wholesaler, retailer or even the
way

manufacturer

looks

"his

sup¬

F"CA
plier
for credit. One large cornxlcu
t*'""
pany has found that its collection

period
erage

result,

has

increased

by
it has

two

the

days.

been

av-

forced

in-

^ crease its own borrowing by $10
million.

This is all well and good,

providing

that

credit

standards

arejmt sacrificed^ in^the process.

There is always the

that

ever,
tend

danger, how-

companies

some

slow

duced with man-made fibres

Argentina

lighter,

and

warmer,

—

easily

down

the

will

Play in this

Process of growth and

told them they

already have bor¬

much

a period of three
seven years now play a unique

role m helping to. finance

too

much

the

business in 1956
-that

the

meet

credit

used

from banks

came

critics

have

mind

particularly loans that were used
for fixed capital purposes—that is,
for
financing plant and equipWe

ment.
the

don't

volume
in

was

passing
ing, it

do°

how
bank

although
greater

was

any

such

1956,

doubtedly

know

judgment

policy,

mror

flexible

ttri -f l-\

in the demand

unds. I therefore do not think
at t ere is any particulai magic

equipment loans

va^ even ^

geared

to'depreciation

duction

loans, and

Medium

It
H

is
Id

not
IlUb

Term

too
IUU

oil

pro-

host of others,

inmv

lange, in my

quire

to
IU

would

re-

fairly_major setback in

Loans

much

111UU1

as ^

inLmAnt
judgment,

turity of 36 months

ranging

ma-

not

was

with ; down

un-

payments

low

as 20%, often depending on the complicated proc-

bargaining

dealers'

over

fortunately there
this

signs that

are

tendency to over-extend conbeginning to right

sumer credit is

Rself.

The

has

year

v-'11
On
the

contrary,

there
c

wiiu aij,

good

are
cu
L

5VVU

without such credits from banks' and valid reas?ns why the de™any

reCa^P|cc||s To'the "invest- relaUve^strong^erThe for^ee-

nurse;
wuuiu rauor
unuer able
ment
market would
labor ™d<*
an
almost

This

impossible

the

The

whole

different

IneTated'fnTe

handicap,

particularly

case

business.

howeier I
wePPca^ot cou„t'on

IfraTd

that

any

tax

re-

much

duction

that

if taxes

amounts

growing population, and not
least, the constant tendency
for wages to move higher•all act
our

the

lfv^ui ernfzaTonof oufpTduchon fedt

r n a

haDrilv

for
pic-

future- The= £<•«>;
8reat technological advances now under way,

t}ie foreseeable future. So it

seems

ities

Never

Then again,
for
for

the

viaxcc

business

vya &

form

iirvi

medium

term

have

our

savings

far ahead—some into the 1960's.

jv*

knot

hUtorv

banks made forward commitments

vRaRy important that banks stay
tV»a

insurance companies and

hanks
banks

return to

wnulH

would,

2% rate

pnmnlpfpl

completely

lending. If they do not, or if they
fail to do an outstanding job, we

unsound economically. Banks have
experienced rising costs, just as
know
well
and
good
that the commerce and industry have. No
advocates of big government will bank could afford to take many
make every effort to take over, risks at 2 %—their earnings picThey once h3d a big hand in it ture couldn't support it. A healthy
with the RFC, ad now the Small banking system that can
afford
Business Administration is grow- to make some risk loans requires
jng increasingly active in the field an interest range higher than the
—completely unnecessarily so.4 in depression level of the 'Forties,
my judgment.
and fortunately it looks as though
Even

so,

business

both

banks

the

and

community have

very

large responsibility in this matter
of term loans, especially in times
present. Again
it is a
question of not overdoing it—of
care an(| wiS(jom in planning, and
not

building too far ahead of

your

advance

been

much

the

past

less'rapid,

call

possible to
5

maximum

that

love

1955

with

multicolored

models of the auto industry, and
we jiad quite a huge outpouring

jbe

of credit.

years;

for

present

provement

use

will

the

im-

and

increase^ output

combat

help

inflation.
Rate

Pattern

the

very

strong

de-

mand for funds has acted to push
rates upward and payments of 4
to

consumers

to produce at

indefinitely.

leaving this„ matter of
credit, I want to say a

know,

year,

rate that could not be sustained
:

■-

Consumer Credit is

few words about interest rates. As
you

one

try was encouraged

Interest

business

increased their debt by no less
than 20%, and in doing so I am
afraid that the automobile indusa

Before

rowers are now

from

rates

has

short-term

been

often

•

Righting Itself

asked

whether

think consumer debt is too high,
To someone who grew up in Central Illinois, where freedom from

raised

—

Govern-

was a

easy

tainly

consumer

life.

chief virtue, this is not

question to

We need to view this
of

rates

There is

with

some

new

level

perspective,

question but that the

credit

interest rates which

prevailed

iti

washers and

have

created

for-cars^and for
,

the modern kitchens,

did not have it.

Cer-

essential

We could not

answer.

must all recognize that

ment_obhgations to the longest of the mass markets,
mortgages.

suctr lend¬

the

loss

experience

con-

loans has been oonsistent]

Our

econo-

mists tell me that consumer debt
is not too high, and they produce

experienced widespread unemployment. The average American

usual

period marked by

standinp.

credit

honest; he
importance of a good

h,s
°w"the
knows

and

sense

of when he is

deep

over

his

h*s

getting in too

head.

these

With

vjrtues and SOund policies

search,"

over

billion

re-

were

influenced

and

even

estab-

some

disturbance

survey

the

;

before
are

i
v

the

tronic

at our own bank. There

new

rare

devices,

metals, the elec-

and

the

you must not

represent

forget that they
level

that

has

now

been

radical reached under fairly heavy

pres-.
sure. But actually the level is not

Even timehonored
consumer
Item s; aie .high historically. Rates of 4 to 6%
undergoing change.
Recently I or more were counted as par in
of

weapons

year,

defense.
,

think the rate at which

sumer

credit

grew

over

con-

the dec-

ade to 1956 was more rapid than
will be healthy in the future, and

that we must adjust ourselves to
a
slower growth in the period

vlk

favor%eWW»
would he imnn^erf

whirh

^oes

only certain
the

tvDes

Federal

effect

credS^I

favoring

otheV'

this would

Certainlv

-x

7^*7. J.?._rri'r
economy, and one to be avoided at

all

costs

need

and

want

freedom

mum

flexible

judgment.

What

the maxi-

possible

under

monetary

policy.
If we
require any proof of the impartance of freedom, we have only
to look at the postwar experience
of Western Europe.

dent

that

the

It is

acci-

countries

whose

economy
and
living
standards
have moved ahead most rapidly in

Europe were

the

that

ones

per-

the

central

bank

the

dictated

policies of

ivate bankli,

manufacturers

were greatly hand-icapped in their production,
No, if we are to have any con-trols
whatsoever,
let
them
be
eco-

the

««

nomic weather, and not rationing
the raindrops. It is the great merit

rat'

present' monetary policie:;

our

that they

aimed at doing just-

are

that—at influencing the economic

weather.

far

the

skies

have

part of lenders' ta'k pf ^ern- been sunny and blue, and the
over consumer credit
meat contro1 °ver
consumer credit weather has been favorable to
*•
Commerce, industry anrt
™ak^ no sense whatsoever to me growth.
finance have all
The

has

consumer

Run to hold

done

not

only be-

his debt in somewhat

help make it

better check; he also has started
mnrp
t.ast
caulncrc
to^save more.
Last
year savings
by individuals finally rose to a
postwar peak of $21 billion, and
indications

present

that'this

are

figure ought to be matched
ceeded in 1957.

This of

tremendously encouraging,
like

think

.that

the

and

the huge
induced

demand

loans

has

for

increased

Our

savings.

of course to be consistent

ctandine hv for

walk

ness

in the years

banks

have

not

and it shows

ahead.
in

our

use

recent

jnterest

tight

rate

own

bes

nor

the^

es«

continually stand

unempiov^ **

reiving soleh/

NeiSei-

efforts

banks

can

run

arR

3^^ statism. Again! let
^ will.take

standing

all

and

Gov-

prevail,
me say

the

poise, understatesmanship we
bold

muster

can

course.

feet.

on our own

crutches from

any

en-,ment

But hold

such

* a.

must,

Joins American Sees.

Lake

American
1515

Colo.—Mrs. Helen
has joined the staff Ox
Securities Company,

Eighth Avenue.

With Courts & Co.
(Special to The Financial Chronicle)

ATLANTA, Ga.—Lee M. Clark-

is now connected wit!\
Co., 11 Marietta Street,
Northwest, members of the New
Jr.

son,

the

York stock Exchange,

free

With Merrill Lynch

finan-

the

final

have moVed into

p^tjtf0^ ^ere

ex-

(Special to The Financial Chronicle)

com-

play

MACON,
is

now

fppfivplv

nspri

ment—all

are

govern¬

competing freely for

some

buildingi

that it has
funds

away

(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.
M.

insurance compa-

—

John

Bolstad, Jr. is now with R. J.

Steichen & Co., Roanoke

Building,

Paul Kent Opens

at_

from

Pierce

R. J. Steichen Adds

home

o.,sinp„

,^,,,0

builders, individuals and

Ga.—Arthur J. Kelly

with Merrill Lynch

Hotel'

supply and demand in the market
place is a primary determinant of
^,here funds mjgyht be mQst ef.

home

market

mQney

segments

^arkets

tracted

wRhout

years,

one

frprnfl]v rioqp comnctition

hag been

over-ex^

Courts &

Today all
cjal

must

Washington for help at the first
sjgn 0f any tough going. We must

Actually

jncrease savings reflects

aspect

line

between

inflation and

their fair

growth.
The

ormortunitv

GREELEY,

in the record of

line

waik'indenendentlv

busi-

gained

savings

would

I do not think there is any
doubt but that- banks must gain
more savings if they are to meet
needs

statism

and

(Special to The Financial Chronicle)

thin

verv

the

between

have

Banks Need More Savings

credit

who

pansion and under-expansion,

fn^adveitising diiected

full

those

to manaee things

Personal loans,

the

pari;

none

many banks to seek more

own institution has done this, and

nnvp'rnmpnt

For

process.

for

nation's

commercial banks have played

important role in the

ex-

course

their

But

so.

to^rnafntahi^uSf^a* condi^

vpar

un-

lished by government fiat — by trends. After all, consumer credit
without
vast action which carried forward a has grown from a level of *5M»
number oTnew'products and new depression level of rates into the
billion in 1945 to $41 billion today
ways
of doing things. I myself controlled economy of war, and —certainly a huge advance. Again
never cease to marvel at the range
then held on to it afterwards.
it boils down to a question of
1 of opportunities that are unfolded
When you look at present rates, balance.
will be done this
coming up with a

controls

the

thowho

are

thr.

credit-

'it—who

have

of
of

ment control

technical

can't spend

There

funds

tvne

!?.
a surprisingly good manager of directed to influencing the
his own affairs.

the 'Forties were artificially low. all sorts of ratios to income, funds in the various markets.
progress
and They w<ere not established in a supernumerary income and other
Again I think you will agree with
change with great opportunities market that was permitted to op- complicated measures to prove it. me that
this is as it should be.
for investment and
growth.
We erate in relative freedom. They Yet I must confess; to a feeling of
This1'past"vear'the businesT'need
live. It is

ieet

general

pursued

lendi

Iow- This was tW even in the
depths of the depression, when we

fell

consumers

the

'and they
sbould be reserved in times like
range

that

sum6r

whenever

and

by both lenders and borrowers. It mitted banks freedom of choicVln
has always been interesting to me lending. In the countries where

we sha11 continue to have it.
savings for the public. They are
I cannot leave;you today with- qomg so nrst 01 all through payout saying a word or two about Pent ot nigner intere§t on
sayanother form of credit—consumer J"gs accounts. But in addition to
credit. Banks play a major role in ^1S' a
er, °
banks have
this field, too, as about one-sixth changed the emphasis in their adof total bank loans are made di- vertising
to
concentrate
more
rectly to consumers. You will re- bcavily on the need and desirabil-

market. Term loans should be held

investment

aceornr>animent

broad

controls

1955

Freedom'

natural

Reserve

Credit

allocate

months,

the standard.

was

a
y do not ^
see.
Llldl
that

odj
say

ingredient in the American way of

than 24

margins and trade-ins.

Maximum

This freedom of the markpts tn

down payment of one-third

interest

character of the times in which

new

seldom

was

rates

large

before

written for
and

ago,

years

paper

ess

4-imo

o-f

Ten

automobile

interest

noocnrtn

further.

any

must,

loans

to me we would
recognize the unique

have

terms which should not be carried

common,

debt

seems

well

more,

highly qualified bortvpical, as against
a level of 2 to 3% some six years
ago. Indeed, the whole pattern of

it
unthan in

Yet

year.

are

significant changes

eco-

special needs of partic-

ular industries

Future

obtained from the capital markets,

These

Moreover, this rapid rate
by an easing of

achieved

institutions that can supply such .
amounting to no more than half
credits, since both insurance, com- ow. Yet fweaeth n king of a tbe rate of 1955^ DOVvn payments
pames and the investment market lange, or a broad level of interest have been
stabilized, and maturiare, interested in longer maturi- rates, I believe it would be a ties are nb ionger lengthening. I
ties. Moreover, banks have shown
5*1^ '^ink U is significant, too, that
? great deal of ingenuity in tailor- a e likely to return once again this return to a more healthy state
mg
terms of such loans to °
i a<!n
is keing accomplished voluntarily

who claim that

of it should have been

12%

pomicgrowtl^ Banks are the main, to^tho current level of 4%. It can

their financial

those

are

rate

expect

course,
'r-7

liquidated over

condition warrants.
There

the

•"'Tf!'

—

Mexico,

Doubts Return to 2% Rate

diistry after industry.
If we
Bank credit has a vital part to monetary

expansion of propayment1 ductiori facilities
facilities that

of their accounts after banks have

rowed

and

ranges from

so it goes with
after company and in-

company

ture might

signs

being

are

number

has

of the lowest

one

for bank accommodation in Canada
and Britain is 5Vi>%; in France it
is 7%; and in countries like Brazil,

smaller

Inventories and Receivables
There

was

bank loans is

in the world. The equivalent rate

y,v,:Ainfl

ette1rablf!.StheTtxSone?ne?rade

inventories

ahead.

Even today, an interest rate of 4%

they

100% wool. Actually there
isn't any wool in the blankets they
make today. They were all pro-

partly,

Viiakan

remainder,
billion, showed

bear

this country prior to the'Thirties,

were

invest¬

inventories—due

the

$5%

heavier

Irnmir

i/rtfi

our

one

trorxr

nificant than the growth of
plant
and equipment in bringing about

manufactures
gone

stressed the fact that their blankets

time-to

same

and

year,

development

days

sud-

working capi-

plant and equipment outlays were
expanding. It hasn't been widely
recognized that working ! capital
needs-increased
by almost $12
billion

who

washable, And

„

stantial

plant

the

customers

ternal cash

long-term

visited

capital spending has outrun the in-

•

(Special to The Financial Chronicle)

ROCKFORD, 111.—Paul Kent fcr

nrerhave'placed^moTe^^funds''in

engaging in a securities business
corporate securities- even savings from offices at 2112 Grace Street,
baifks have been 'attracted into He was formerly with Conradtf
strange
new
fields
A savings & Co.
,

bank in New York, for
nGw

example, is

Herbert R. Bloch

making ship loans—govern-

guaranteed loan? on tankers ...Herbert::R;: Bloch,
nhpoH
ty
x!

partner

,f„nPC

are

chartered for j

by major oil companes.

Benj. D.

> away

Marcn

;

■

The Commercial and Financial Chronicle

Continued

Public

Utility Securities

unemployment. Quite to
I believe that unless
considerable accelera¬
automation to increase the

result in

from page 14

the contrary

there

tion of

Diversification:

worker, we

the

productivity

from now
labor in

will find in a few years

By OWEN ELY

Good

Company and South
Gas are sim-

Southern
ilar

stocks except for the

utility

great disparity in
pare

size—they com-

follows:

8o.Carolina
-

Electric

Southern

& Gas

Company
Annual

(mill.)

Revenues

Dividend
Yield

20%

$1.10.

$1.10

Ratio__

Equity

$1.51

$1.53
13.09
35%
$15

;

•Price-Earnings Ratio
Approx.

5.37%

5.18%

Earnings

1956

21%

Price

Recent

$43

$227

Approximate Book Value

growth, the resulting predictabil«y of earnings most assuredly will
products, food processing, metal nnpiove a company s credit.. .
and machinery. Agriculture is
Increased
profitability r and
well diversified, including: the stronger credit generate funds for

answer is related, I believe, to a

33%

common stock

Company
iy

ern
cqa

million

$30

l-for-13

basis

expiring April
G.

4.
4.

Feb.

000

20,

Carolina

soutn

offered 336,-

stockholders

basis

1-for-10

stock on
on
a
stock
a
with rights
o

on
common

recently.
•ecently. Southvnvnu,,
offering
about

the

and

$18.25

rights expired March 12.

of share earnings and
Smith

vpar<?

rprniinp

thp

price range

nostwar

revenue)

thp

^vas

Products

o£

that

the

are

out

look quickly at

195g

customer

comDared wjth

kwft

3242

was

+he u

average

of^ oL
■

Southern Company expects con-

F11"6. rapid growth m its aiea
and ,1S spending $ ® million on

plor'da. f'ow" .CorP

■

not
not

sxressed * recently,
recently,
stressed

been
been

people
is

WOrk
vv„

created

whenever

But

busy:

are

for

found
iUU1JV1

or machine or both,
element in the country

man

con! 119 m.llion mcludmg assumed beneyfits.
.

South Carolina Electric & Gas his division.
t
supplies electricity to a popula1 am convinced that diversificaOn the other hand, South Caro- tion of 700,000 in Charleston, Co- tion promises a basis for greater
lina E. & G.'s growth has been lumbia and 405 other communities managerial efficiency and for desomewhat more rapid.than that of
the central, southern and south- velopment of the reservoir of exSouthern Company. Starting >vith western sections of the State.
It ecutive talent for which the need
1948
when
South
Carolina
acalso furnishes natural gas to 28,- continues to increase with the
quired South Carolina Power, the 600
customers. More important growing complexity of industrial
comparison is as follows:
industries are manufacturing cot- operation.

gaining consistently after the lat«

1956
956

So. Carolina

t°n»

Company

Eiec. &Gas

and brick

124%

1948

97%

1956

over

1952

1956

over

1955

over

uvuvutiu

It serves a population
6,300,000 in the deep South

companies.

—Alabama,
fid

northern

]nyr.

loy;

Georgia,

Mississippi

"Florida

Industries

raro1ina
_

offers

nil

rSinerv In

new

Revenues

tne

Project operated

rnif

arej whieh^hnldd toiFe
nnwpr

sFFth

the

m.,th®

sbould take considerare

about

86%

elec-

itrvi

much

opportunity
to

River

Pnnt

industry.

trie, 10%

FREE
COPY

and 4% coach trans-

portation. Gas
bled

four

revenues

have dou-

diverI

see

"bads"?

them. What of the

over-riding

The

one

is the pros-

T4eir growth has been at the exf,reat. seaP°rts. New
York s population is up a minuscule 2%. Philadelphia has grown
{ess than the national average,

are

as a

items-were

not

■

and

man¬

well

think ^ve

have to
much about failure. Failufe

b°th Tt®c^ol®glfclal and s?clol?£"

lcaV In no paiticular order, the
ma3br Gnes are: air transportation;;
•• .communications ... new types
of fuel and sources of power, and „
wider distribution^
of both which
increased
in-plant training;
+ native
*' stalls
reduces the need + for
inLthe focal labor supply
the
government's insistence on indus¬
dispersal.

over-congestion

Gf thf gr®at port ?ltles ; r • inteihgent self-promotion of the type,
practiced by New Mexico in geneyal and Albuquerque in partic-,
mar. :
;

Requires Change

nrincioal effect

business'

xne principal etiect on business
!^aa
flFrwlrfJr'
Management
today has plant
a far wider
choice
of acceptable
cites
.

than existed 15 years ago. And

There remain two
ments

should

this

can

discussed.

diversifi¬

the larger companies
will destroy small business. I am
cation

unpersuaded. It certainly has not

set

incorporations last

And

year

all-time high.

rxif

will not happen,

every

because we see on
band that big business is a
view,

stead¬

ily growing customer of the smal¬
ler firms. Who is going to make

components of the new prod¬
actually going to fab¬
ricate the thousands of new prod¬
ucts that accelerated research and
the

ucts? Who is

bring

out

the

addi¬
companies
gain all or part of their income
from selling, installing or servic¬
ing its products. Our economy is
just too needful — too busy, if you
will
—to permit any useful facil¬
ity to go begging for lack of work
for any extended period.
,
:
A second, and
a ^elated criti¬
cism of diversification is that it
tends to create monopoly. Again,
I feel that the precise opposite is
true.
Monopoly is characterized
by lack of or limitations on com¬
petition. It is obvious that diver¬
sification intensifies competition.
I
doubt
very
much that the
Worthington Pump Company and
Radio Corporation of America had
more
than
a
speaking acquain¬
them

respond to

the new? The person most likely

in** to try the new and different,
if notMy conclusion concerning the
ill-con- impact of .diversification on am¬

small, and that an

400,000

tional

found, I think, in a point of view.
What kind of man — what kind of
is most apt to

popular argu¬

against diversification that

Critics have said that

for

General Electric reports that it
bu^s from 40,000 suppliers, most

tunities.

—

Competition *

laboratories?

taking advantage of these oppor¬
reason

willing to

Helps Small Business and

the; development

managements of diversified busi¬
nesses have
assumed the lead in

The

are

going to have progress. "

are

business

...

job/^

better

long as men

happened
yet. According
to a
Dun and Bradstreet sampling, new

...

trial

ideas and

new

competitive

our

can

man

one

Banking activity in Boston is lesa
tJ^ai? Jt ^a® ®eV(en yeafs ag?;
to* thl^s ^ are.

result of diversification

the

as¬

back them with money and energy

doomed to failure. Many

most

question that

capital

skills

element of

have

War 11 have been successful- This fied business tends to locate in the
does not mean, of course, that four newer and more exciting indusout of every fjve new products trial centers because the managers
marketed by established manufac- of diversified businesses are willturers

difficult
no

than another. But

diversification, no one will deny

r-,m%r
new

dislocation—of

that it involves change. Diversi-

can

unsuccessful venture produces

products

one?
20%

than

There

system and will be with us as long

marketed since the end of World

less

sification
sess.

without exception inland cities,

to accept the challenge of change
is in my opinion the one who has
The only survey of the been thinking in terms of change.
I have seen reports that Whatever else may be said about,

subject

worry

Pect of failure, and this , constia
real and ever-present

danger.

encouraged.

The effect of unsuccessful diver¬

^aiie City> Phoenix, Des
are
Moines, Indianapolis
all

mind

Drawbacks

and

But

desired

small

bitious and growing communities
which' seek additional industry
year and similar ex-,
can be localized. Your best prostance
with each other even as
■pansion is expected in 1957; there modify it, an 80% rate of failure pects
for. additional plants in recently as 1950. Today, as results
is said to be a future
potential of certainly is a warning signal.
Albuquerque are companies which of planned diversification, both
about a20,000
house-heating cusDiversification by product mul- are diversified or diversifying, market air conditioners. Today,
tomers.
tiplication
therefore
is by
no Theft managements will listen to
Worthington Pump and RCA are ~
Despite recent issuance of addi- 1T,eans an unmixed blessing for your arguments with a receptive competitors — and of Fedders,
tional
stock,
1957 earnings are business.
The mere desire to mind.
Philco
Amana, Servel and York
some

3,000

tomers

Write for

gas

tutes

thrn,Lh
inrougn

£ i

F
.

AtomTp

The

PP >

rom

Those are the "goods" Of
sification for business as

,*!ini.ng'
~

^^le^trk iustom^

']1)1p

—

shinnine

and

Enserffv

build

ar»o

pipe

oil
production,
quarrying, flour and lumber

tobacco Drocessine

•xplains why Hw

concrete

fertilizer and metal al-

Savannah

AREA RESOURCES BOOK

and

clay

cottonseed

stone

Southern Company
wiu|iauj
is
is
the
tnc largicugest
of several
southern
holding
over

ice,

?a^

developments

community living and labor.

Wichita, Denver,

are

agement

_CT Indianapolis,- 10.3%. v

higher profits and dividends and
community industrialization

wider

f°r !>es.Moines, 8.1%

have been so * •A'1,
proSperous that most facilities and Q £
because

bapg

g ^ a\ a cost of about every

Southern

perper-

fewer idle

as a raiarae.

of our country's history.
fjiLii
y.
?a~<
Internal diversification can and ~ Q5/^re» a2ain smce 19t>0, isa
does put'idle facilities to work "2£/o increase. But the increase for
and buil(J ernpioyment. This has Fb°emx 1S 19 A% " * for DenveL

Increase in Revs.

&$£££*
f"'"""*/ -al-ceptea

scientifically run businesses,
facilities and personnel,

this short period

years

Georgia idle

all the preceding

research

"good" for the nation.
Certainly, more jobs* more plentl-'
ful-- commodities - and4, services,
ments

for

successful

that

obviousr

diversification contains many ele¬

com-

-----

ter year.

H"ilefn£Ja«.s.^sJIncr^asfd

fince 1?5QLBut

industry expendi-

Fe P^sbectus dated March
x shouid Uke to touch very
13 points out that important de- briefly on a non-monetary effect
drought years this was a'consider- velopments in the petrochemical of diversification. It seems to proable
handicap since it required 1 ield are !aking place ln n?rth' duce less autocratic and more obusing obsolete steam plants or the yest Florida.
The largest inte- jective management thinking. The
purchase of expensive power. Due grated nylon yarn manufacturing task of runnftig a diversified busito the sharp fluctuations of earn- p,Jant ln the .w0^d 1S
ln ness is i^st to° complicated for
ings South Carolina E & G sold
area, and other plants have any one man and any one set of
as low
as
5% in 1947-48
Share b^en recently completed or are prejudices. More and more, scienearnings rose from 74tf id'1947 to under construction for the pro- tific
management methods are
$133 in 1948 and $136 in 1949
Auction of nitrogen fertilizer, being adopted, and authority is
but were almost cut' in half in Polyvinyl chloride, methanol, fine being delegated. At ACF, eath of
1950 and dropped further in 1951 chemicals, arcylic fiber and zirco- our seven product divisions is basto 52^. From that point on howIndustrialization of the ically autonomous under its own
ever, with the addition of sub- l$issjssiPPi 9ulf ^osist is also pro- president.
^
stantial steam generating capacity ceeding rapidly, as is the Mobile
The new president of our Niiand with rapid growth in the area >a^ca in Alabama. - The develop- clear
Energy Products division,
recovery
in earning power was ment of oil and gas in Mississippi Dr. Marshall G. Holloway, who;
steady
and '• ranid
Southern's and Alabama is gaining headway, for 12 years was a resident of Los;
share
earnings
record was less Jbe
large naval and air force Alamos and a distinguished pioerratic, though that company also bases in northwest Florida now neer in nuclear energy developsuffered
moderately from - low have an annual payroll of over ment, is directly responsible for
water in 1950-51, with earnings $125 million.
the operation and performance of
to

sister

did not make befofe

1945.

inanities. The population of the.

Business

-----

«,ri£r construction this year; it has resubsidiary of
dup t,enUy taken over a

committed by

owes

supply substantial power
two
other
utilities
and
in

tract

some

every

the company

nor

rpwnnp

new

aoout 60/o e..a
,tos^S^researchdn
„
^
"
• the nonr,.lstinn nf
hoe in-,
of Wu-hito
Wichita has
nmcrcia
\ia\ 26%
and ^% misce
misceijaneous The nine post-World War II years — creased 34%
. . of Denver, 31%
^naI»' and I®?dential
a period of maximUm
maximu'm diversifica- ' / * of
Fa~e City, 21% . . .
average
residential
revenue per
average
resi(
totaled 49; billion dollars.
ot Or
Phoeni3% 45%.
* pxtrpmelv
00b com- lion
consider banking activities,
nely iow_2
lo\
^ i extremely w 2.u c co
as
reliable.
[ !

that

Company advertised

products have created 45$60
development of which Albuquer— GE jobs
since World War II. One
5af,is a prime example.-I refer.
of
five people working
to the current phenoxnenal growth. there
his position to products

basis

expanding ecohomy.

' According to the Small

the General

done. Recently,

to be

Electric

•.

is too mpch

We know that there

profound and exciting sociological

research and

redden-r Administration,

about 35%

are)

transit

and

heating

Hpradp

mainly to severe difficulties with
hydro power in these years
The
company

greater irregularity

shows

corn,

yarn,

new

The historical record of the two

stocks

omy.

development, and OI imand cities and smaller
fruit, livestock and tunghuts; "the this may well be diversification s communities.;
oil of which is used in paints and&most important long-term benefit.
The centers of population are
lacquers
It is research and development shifting dramatically today. You
Qoi.tWrq
rnmnnnv'c
plprtric money . that makes possible
the know about Albuquerque. Let us
cotton,

amount

sanies have
Both companies
have been
been sellsell-

ing

in the area include steel, paper,
coal,
chemicals,
lumber,
glass

raising"

meet the produc¬
expanding econ¬

country

tive needs of our

Why do diversified businesses
so often seek new locations? The

revenues, wfach approximate 9» A
of total gross (there being a spall

13.06

$15

the

cyclical influences, or product obsolescence, or promises accelerated

South Carolina Electric & Gas
Carolina Electric &

not enough

there is

that

Bad for America?

Southern Company

1857

Thursday, March 23,

(1494)

years.

new

There

gas-heating

were

cus-

last

ceived,
single-shot
-efforts * of
inexperienced or-marginal producers.
But no matter how you
-

Box 899,

Dept. K
Salt toko

estimated at about

City 10,
Utah

with $1.51 for

$1.57, compared

1956.

diversify is not enough. To be
successful,

careful

Join

Ovpd
^verIOn

(special to The financial Chronicle)

CORONADO, Calif.—Charles H.
Kevser

and

Charles

Marshall

That leaves employees.

based on
I could labor the point that sucplan- cessful diversification adds to the

it must be

analysis, intelligent

ninSi
ar)d continuous
even
then,

there

control/ And income from which higher wages
no

insurance and other benefits must be paid,
but I prefer to

against failure.

concentrate on a

Now let us consider a topic that special point.
is the particular domain of ChamDiversification, because it is ex.

bers

Commerce:

have become affiliated with J. A.

in which

Overton & Co., 1134 Orange Ave.

fying

new

company

community

plant of

diversi-

might locate.

pansive, creates jobs. I do not
subscribe to the idea that automation is a bugaboo that will

well
Or

each other.

might

take,

„.

•

ex¬

industry.
specialis¬
in the manu¬

ample,
the aluminum
Reynolds Metals, after
ing for many years

foil, and the Kaiser
both with the help.;
of the United States Government,
became formidable competitors of
Alcoa. Certainly this is a casein
*

facture

Steel interests,

Volume

185

Number 5624

which *

diversification

The-Commercial and Financial Chronicle

not

did

Continued

from

the 208 last year and 232 in 1955.

page

engender monopoly.

six

Diversification extends competi¬

tion

with

imagine
of

Casualties

other.

each

nothing

monoply

Truck makers were heartened by settlement of the Eaton
Manufacturing Co.'s axle plant strikb in Cleveland the wee* beiore.
production was scheduled to be resumed Monday at Chev¬

can

preventative
that. The monoply

Full

rolet's

Willow Run truck plant
and
International
heavy-duty truck plant at Ft. Wayne, Ind.

argument falls flat unless you be¬
lieve

that

General

Motors

and

Harvester's

Small

Steel

driven

and

out

DuPont—can

business

Steel Production This Week

it.

Steel prices will

;

steel workers

;

liabilities

Halsey,

Stuart

(March
& Rio

&• Co.

28)

and

Inc.

3%%

equipment trust

certificates, ma¬
turing semi-annually Nov. 1, 1957
to May 1, 1972, inclusive.
The

yield

certificates

from

priced

are

3.50%

3.75%, ac¬
cording to maturity. 'Issuance and
sale of the certificates
to the
state
.

authorization of the

Commerce

.The

subject

are

issue

Diesel

Inter¬

Commission.
to

electric

secured

by
switching

road

locomotives; 200 box cars and 250
hopper cars, estimated to cost an

~<p

Associates

offering

are:

Dick &

Merle-Smith; R. W. Pressprich & Co.; Baxter & Co.; Free¬
man &
Co.; Wm. E. Pollock & Co.,
Inc.; Shearson, Hammill & Co.;
McMaster Hutchinson &

ters,

Writer

and

Co.; Pe¬

Christensen

Inc.;

Suplee*"3 Yeatman, Mosley Co.

Inc.

prices,'the
last

much

With Babba^e Fivm
LEXINGTON,

Ky.

Harry

—

Building.

With Security & Bond Co.
*' (Special to The Financial Chronicle)

LEXINGTON, Ky. — Harold S.
Sharp is with Security & Bond
Company, Mill and Short Streets.

made

through

prices

way

raised

were

forms

common

year's, producers will not

week.

revision
start

Mr.

passed

Steel

specific

producers

qualities,

material

cover

carbon

steel

went

O'Donnell,

mem¬

ber of the Security Traders Asso¬
ciation of New York, was a

part¬

in the former firm of McGin-

and

now

with

industry feels

increases stemming from
hikes. Such advances have continued

about half

much

last

August's increases,

exceptions.

have

their

ating

rates.

Signs

inventories

down

far

safe

for

current

declining, while in others, it is picking up slightly, continues this
trade weekly.
Building of stocks before mid-year will repeat the pattern
of several recent years.
Users have stockpiled steel before mid¬
year as a hedge against the possibility of a steelworkers' strike
and a steel price increase. The contract eliminates the threat of
an industry-widp strike, but it assures that steel
prices will rise,
;

"Steel."

concludes

American

rate

and

Iron

steel

for

Steel

Institute

companies,

the

entire

having

industry

announced

96.1%

will

of
an

industry's

ingot

production

for

rate

the

that

the

steelaverage of
the

weeks

annual

capacity of 133,459,150 tons

1957

Jap. 1, 1957.
96% and pro¬
duction 2,456,000 tons.
A year ago the actual weekly production
was placed at 2,452,000 tons or 99.6%.
The operating rate is not
comparable because capacity is higher than capacity in 1956. The
percentage figures for 1956 are based on an annual capacity of
1

For the

128,363,090 tons

week

month

the

ago

rate

was

of Jan. 1, 1956..

Courts

added

Co.,

W.,

York

the

amount
power

of electric energy distributed
by the electric
industry for the week ended Saturday, March 23,

estimated at 11,723,000,000 kwh., according to the Edison
This was a gain above that of the week before.
The past week's output advanced 73,000,000 kwh. above that
of the previous week; it increased 589,000,000 kwh. or 5.3% above*
the comparable 1956 week and 1,816,000,000 kwh/ over the week
was

ended March 26,

staff

the

Exchange.

PONTIAC,
J.

Mich.
now

Neohler

National

freight for the

revenue

rose

by 16,840

cars

2.5%

week

Bank

—

16,

week, the

cars, or

5.9% above the

cor¬

Co.,
Community
Building.

increase

of 706 units

above that of the

preceding week's out¬

week's

1,365

output

*car

declined

cars,

Last
made

week

the

United

States.

previous week and 23,690

1,697

LOUIS,

Franc

Mo.

—

Samuel

that of the

This
year

compared

were

22,937

trucks

with

20,866

the

ago.

was

placed at 8.488

cars

and 1,731

In the previous week Dominion plants built 8,876 cars and

trucks, and for the comparable

1956

week,

10,086

Icars and

2,456 trucks.

now

with

Henrv.

Co.,

308

North

Eighth

the year,

Grain

Inc., reached a new low
18; at 289.40 (1930-1932 = 100), the index
week previously and 283.86 a year ago.
& Bradstreet,

March

290.40

although they remained about
The daily wholesale commodity price

ago.

year

prices sagged

loss in wheat and rye.

noticeably last week, with most of the

The decline in wheat prices occurred not¬

withstanding strong export volume and
in some Winter wheat growing areas.
lated

dust

storms

with buying

stimu¬

reports

prices

comparatively

were

stable

by reports from Washington that the Department of Agri¬

culture

would

help

marketings of

support

prices,

presumably

reducing its

corn.

Declines

in the prices for oats and soybeans were usually
Average purchases of grain and soybean futures declined
to 35,000,000 bushels a day, compared with 42,000,000 bushels in

slight.
the

preceding week and about 38,000,000 bushels a wear ago.

The downdrag in wheat prices was accompanied by increased
buyer's resistance to flour prices. The flour inventories of most
bakers were adequate for their current needs and trade observers
were of the
opinion that flour price reductions might be neces¬
sary to attract other than small replacement orders.
A mo^rate increase in cocoa trading pushed the prices up

Warehouse

stocks of,cocoa

329,409 bags

year

Coffee prices slid noticeably

to 301,328

rose

ago.

bags, com¬

lower toward the close of the

week.'-.

""
week. Purchases in
14 spot markets amounted to 85,800 bales last week, compared
with 65,600 bales in the preceding week and 74,800 bales ir\ the
...

Spot cotton prices were stable the past

corresponding period
Domestic
for current

cotton

year ago.

buying

was

usually

confined to

the demand

Business Failures Rose In Past Week
Commercial

and

industrial

Street, members cf the New York

week

arid Midwest Stock Exchanges.

Bradstreet, Inc., reports.

ended

March

from

failures

301

The toll

in the
was

Although there

increased

318

preceding week,

the

Dun

&
considerably-heavier than

sluggish.

Continued To

Volume In Latest Week

Although

actual bookings were
signs of improvemen|

print cloths, considerable resistance to
continued to be evident. Actual sales of cot¬

But Was

Expand

Slightly Below 1956 Level

buying of Spring apparel boosted total
moderately above that of the preceding week, it

increased

volume

slightly below the comparable 1956 level. """ '
gains

and vvomen's apparel were
ances,

but

the

buying

furniture, housewares,

offset by sales declines in major appli¬

men's clothing, and some food products.

less than

wer£

The

total

dollar

year

new

climbed somewhat,

passenger cars

ago/'

volume

Wednesday of last week

were

for cotton

ton-gray cloths remained

Trade

small lots

delivery.

current price levels

of retail
was

trade

in the period ended

below to 1%

higher than a

according to estimates by Dun & Bradstreet, Inc. Re¬
gional estimates varied from the comparable 1956 levels by the
following percentages: New England +4 to +8; Middle Atlantic
0 to +4; East North Central, South Atlantic, and Pacific Coast
—4 to 0; West North Central —6 to —2; East South Central +2
to +6; West South Central —5 to —1 and Mountain —3 to -f 1%.
Total wholesale trade was close to that of the preceding
ago,

week

and

slightly exceeded the comparable

1956 level.

Department store sales on a country-wide basis as taken from
Reserve Board's index for the week ended March 16,

the Federal

1957, increased 2% from the like period last year. In the pre¬
ceding week, March 9, 1957, a decrease of 10% was reported.
March 16, 1957, a decrease of 3% was

For the four weeks ended
recorded.
of

was

For the

period Jan.

1, 1957 to March

16, 1957, a gain

registered above that of 1956.

Retail sales volume in New York City last

week ranged from

15% to 18% above the corresponding level a year ago. The prin¬
cipal reason for the substantial increase was the fact that In the
like period of 1956 the City suffered a heavy snowstorm which
cut

deeply

into sales.

According to the Federal Reserve Board's index, deparjmfcnt
store sales in New York City for the weekly period ended March
16,

there

reoorted

agency

Canadian output last week

Glassman

below

while

truck output moved ahead by 2,071
during the week. In the corresponding week last year
131,287 cars and 23,690 trucks were assembled.

trucks.

(Special tc The Financial Chronicle)

1957

compared with

year

vehicles

with

Dealer inventories of

1957,
according to "Ward's Automotive Reports," rose above that of the
prior week as a result of heavier production of trucks.
Last week the industry assembled an estimated 139,673 cars,
compared with 141,038 in the previous week.
The past week's
production total of cars and trucks amounted to 162,610 units, or

Last

Richard

connected

months

Year-to-year

March

ended

above the preceding

1956 week, and an increase of 38,302
responding week in 1955.

week

Heivy, Franc Ad^s
--ST.

level for

Loadings Rise 2.5% Above Previous Week

Loadings for the* week ended March 16, 1957, totaled 689,226
cars, an increase of 3,243 cars or 0.5% above the -corresponding

Nephler

two

index, compiled by Dun

retail

1955.

Output Above That of Previous Week

Marietta

members

Stock

With C.

C.*

first

the

2% higher than

in moderate volume.

Automotive output for the latest week ended March 22,

(Special to The Financial Chronicle)

Witt

Low Level For 1957 On March 18 Last

Fluctuating mildly within a narrow range the past week,
wholesale commodity prices were below the levels prevailing in

put, states "Ward's."

Wholesale Commodity Price Index Recorded A New

While export inquiries were numerous,

Electric Output Pointed Higher In Latest Week

U. S. Truck Production Lifts Over-All Automotive

Ri¬

'•

•

....

is based

Exchanges.

general trend of food prices at the wholesale

«;

slightly.

1957,

Ga.—James

represents the sum total of the price per pound
foodstuffs and meats in general use and its chief func¬

pared with

The

19 Last

index

raw

alent to 2,354,000 tons of ingot and steel for castings, as compared
with 93.5% of capacity, and 2,392,000 tons (revised) a week ago.

Courts Adds to Staff

The
of 31

92% of capacity for the week beginning March 25, 1957, equiv¬

Loadings of

(Special to The Financial Chronicle)

preceding

food

tion is to show the

Corn

appearing that steel inventory reductions are ta¬
In some areas, the demand for steel products is no longer

Association of American Railroads reports.

ATLANTA,
ley has been

in-the

oper¬

are

(Special to The Financial Chronicle)

and Midwest Stock

wholesale

respon¬

transportation cost

With Straus, Blosser

is now with Straus, Blosser
McDowell, 39 South La Salle
Street, members of the New York

advancing in wholesale cost during the week
beef, hams, bellies, steers, hogs, lambs/cocoa and eggs.
priee were flour, wheat, corn, rye, oats, barley, lard,
cheese, coffee and cottonseed oil.
/
'
*

was

against

level.

The publication said that steel inventories in most
plants are
fairly low for the high rate cf consumption. Since the steelworkers' strike last summer, most
metalworking plants have been
aiming at a reduction in steel inventories. A good many users

Car

man

Commodities

Lower

will be about as
them along in full.

adjusting price extras, charges for
and packaging, last December to help

sizes

and

average

some

nis & Co.

CHICAGO, III.—.John R. Gross¬

$100,000

included

year

began

last summer's round of wage

1957,

away

excess

under

price index compiled by Dun & Bradstreet, Inc., climbed noticeably to reach $6.20 on March 19, the
highest level since the $6.28 of Sept. 27, 1955. Jt was 4.6% higher
than the $5.93 of the similar period a
year ago.

of
the

Electric Institute.

O'Donnell

March 24.

Street,

at the

pass

Demand for steel is lighter and the steel

light and

(Special to The Financial Chronicle)

James

New

three-

current

upward

The

sibility to help restrain inflation.

The

James O'Donnell

same

making capacity

Cooke has joined the^staff of Babbae^
Kessinger, Security Trust

the

(Special to The Financial Chronicle)

ner

when

under their

magazine

of $8.50 a ton.
employment Icost increases this

operating

will

August when

last

The

guaranteed

"Steel"

states

at mid-year

ton

average

pering.

the

increase

While

aggregate of not less than $6,400,000.

get a wage increase

Capacity

net

The

are

Grande Western RR.

$5 to

It added that buying to beat-the price rise will bring an up¬
operations in May and June. Before that, the
operating rate-may continue to ease off.
■
/.

-contract

offering * today
$4,800,000 of Denver

liabilities

On March

base

Trust Ctfs. Offered

with

week.

•r

turn in steelworks

Western RR. Equipment

associates

rise

labor1 contract

year

Denver & Rio Grande

involving liabilities of $5,000

Expected To

Fall IVs Points To 92% of

corn-

petition. Personally, I do not belieVe

Wholesale Food Price Index Scores 1957 High

Pump anrf' RCA—not to mention
"S,.

were

week ago and 182 in the

failures

General Electric and Worthington
U.

level and

prewar

1939.

or more climbed to
comparable week of 1956.
$5,000 declined to 36 from
39 in the previous week, but
they remained above the 26 of last
year.
Twenty-six of the concerns failing during the week had
282 from 262

brought into competi¬

are

However, for the first time in

weeks, failures dipped below the

under the 350 in the similar week of

tion in the healthiest possible way
for a free economy: The giants of

industry

(1495)

1957 advanced 8%

from the like period of lastyear.

In the

preceding week, March 9, 1957, a decrease of 17% (revised) was
reported. For the four weeks ending March 16. 1957 no change
was registered.
For the period of Jan. 1, 1957 to March 16, 1957
the index recorded?* a rise of 3% above that of the corresponding
period in 1956.

The Commercial and Financial Chronicle

(J 496)

•

Thursday, March 28, 1957

•
.

★ IN DICATES

Securities
A A

Oil

March

Now

Corp., Whitlash, Mont.
(letter of notification) 1,500,000

fered

first

$100 and multiples thereof) to be-of¬

stockholders, then to the public. Price—
Stock, at par (five cents per share);• notes, at face
cmount.
Proceeds—For exploration, drilling and pro¬
duction of oil and gas expenses. Underwriter—None.

Adams-Phillips,
Feb. 20
acock

Inc.

(par $20)

;V'':

(letter of notification)

5,000 shares of

to be offered

common

/Proceeds

For

—

purchase of

additional autos

and

for

forking capital.

Office — 10 S. Craig Ave.,, Pasadena,
Underwriter—Pasadena Corp., Pasadena, Calif.

(letter of notification) $300,000 of §Vi% con¬
vertible debentures due 1972 (convertible into common

stock

the

rate

$1.50

Babcock
March

share).

per

Price—At

face

r-mount

(in units of $100 and multiples thereof). Propurchase of equipment and hangar space
2nd working capital.
Office — 302 Texas Bank Bidg.,
Dallas, Tex. Underwriter—Creson, Sledge & Co., Dallas,
Tex.
■' ■ T1
■'
T'
coeds—For the

■

Aelus Wing Co., Inc.
March 19 (letter of notification) 150,000 shares of com¬
mon stock (par $1) and 75,000 shares of
preferred stock
(par $1) to be offered in units of 10

shares and
five preferred shares.
Price—$15 per unit. Proceeds—
For completion of plant; development of
housing proj¬
ects
utilizing
"Sky-Clone"
blocks;
construction
of

''Hydro-Dynamic
Office—224-26

common

Ship"; and other corporate purposes.
State St., Trenton 9,"N. J.
Under¬

East

writer—None.

(par

/Proceeds—To

working
Colo.

cents).

reduce

capital.

Price—50

cents

com-

share.

per

Address—P.

Box

States

322,

Junta,

Securities

Corp.,

Probable bidders:

counts receivable.

ton

—

Aluminum Co. of Canada, Ltd. (4/10)
March 21 filed $125,000,000 of sinking fund debentures
c^ue 1980. Price—To be supplied by amendment. Pro¬
pr

ceeds—To retire bank loans of $63,000,000 and for work¬
ing capital and future construction expenditures. Under¬

writers—The First Boston Corp. and
Morgan Stanley &

Co., both of New York.

stock

(par $1).

3Q,000
Price—$10

ceeds—For working capital.

.£?. E., Atlanta, Ga.

shares
per

class

share.

Pro¬

Office—433 Highland Ave.,

Underwriter—Johnson, Lane, Space
Co., Inc., Savannah, Ga.; and J. H. Hilsman & Co.,
Inc., Atlanta, Ga.
Ik

Price—$55 per unit.

Proceeds—To purchase used
and to extend the company's
operations into

tile field of

new car

financing.

Underwriter—None.

Fain is President. Statement withdrawn

American
Feb. 27

filed

Laundry

Feb.

J. J.

common

stock

(par $20)

being offered for subscription by common stockholders
of record March
20, 1957 at the rate of one new share
for each five shares
held; rights to expire on April 3,
1957. Price
$25 per share. Proceeds
For
—

working

—

capital

and

general

corporate

purposes.

Underwriter—

Goldman, Sachs & Co., New York.
•fc Anchor Securities Co.
March
mon

Wash.
rr

(letter of Notification)

stock.

working

60,000 shares of

Price—At par ($5 per
share).
capital. Office
W. Sprague
—

Underwriter—None.

March

$2.50).

Price—$6

filed

50,000
per

share.

Ave., Spokane,

common

stock

(par

Proceeds—For investment

stock of APAF
Co., a subsidiary; to carry
tory of leases for present and future
drilling

Applied Physics Corp.
8

(letter of notification) 32,000 shares of
com¬
stock (par $1).
Price—$9.25 per share. Proceeds—
To retire demand notes
payable and for working capital.
Office—362 W. Colorado

mon

writer—Schwabacher

Street, Pasadena, Calif. Under¬
Co., San Francisco, Calif.

Automation Development Mutual
Fund, Inc.
.Aug. 24 filed 300,000 shares of common
stock. Price—At

Proceeds—For

investment.
Office—WashingDistributor—Automation Development Secu¬
rities Co., Inc., Washington, D. C.
D. C.

2* ^*e ^ou^on Stock Fund, Inc., Tarrytown,
March 19

N. Y.
filed (by
amendment) 300,000 additional shares

//.v;

Cargo Cool Corp.
.// v
/ "
Jan. 31 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
open
and acquire additional truck terminal branches;

of notification) 240,000 shares of com¬
stock (par $1). Price—$1.25 per share.
Proceeds—
partial payment for plant site; partial payment of
obligation to Memorial Inc. and for working capital.

mon

for increased

For

Office—4718

W. 18th St., Houston, Tex.
Benjamin & Co., Houston, Tex.
Bell

Howell

Co., Chicago, III.

inventories; and for working capital. Busi¬
Transport refrigeration equipment. Office—947*
Communipaw Ave., Jersey City, N. J. Underwriter—

ness

Underwriter-

•

New

York Stock Exchange immediately prior to offer¬
Proceeds—Together with proceeds from private sale
$4,000,000 25-year 4%% subordinated convertible
notes, for general corporate purposes. Underwriters—
Harriman Ripley & Co. Inc. and Lazard Freres & Co.,

New

Price

Proceeds

About

shopping

seven

To be supplied by amendment.
$4,100,000 will be used to acquire
center sites and a Penn Fruit super¬
—

develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
activities, and for general corporate purposes.

*.■

estate

common stock (par $5)
offered
for
subscription under the company's
Option Plan for officers and key personnel of the
corporation and its subsidiaries.

Underwriter

Co.

drawn Feb. 6.

(letter of notification) 20,000 shares of common
(par $10) to be offered to common stockholders
on

the basis of

one

Co.

Incorporated, Philadelphia

per

share.

Statement

with¬

★ Central & South American Acceptance Corp.
(4/16)

share for

new

Blair &

selected by it at $1.10

sons

(4/8)

March 8

April 8, 1957

—

and New York." Latter had agreed to
purchase an addi¬
tional 300,000 common shares and reoffer them to
per¬

Stock

Berkshire Gas

—

market adjacent to one of them; the balance will be used

York.

Co., 120 Elm St., Orange, N. J.

debentures.

Kaufman

Centers

Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5%% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock
(par one cent); subsequently amended to $4,500,000 of

ing.

both

—

Fred

(4/3)

March 13 filed 100,000 shares of common stock (par $10).
Price—To be related to current market price on the

March 22 filed 425,000 shares of common stock
(with an oversubscription privilege);
(pgr 10
April 29, 1957. Proceeds—To retire **cents). Price—To be supplied by amendment. Proceeds
For
an outstanding debt.
Office—20 Elm St., Pittsfield, Mass.
working capital and other general corporate pur-^
Underwriter—None.
poses.
Office—Jersey City, N. J. Underwriter—Charles
Plohn & Co?, New York.
• Black Hills Power &
f
Light Co.
shares

held

March 7 filed 34,377 shares of common stock
(par $1)
being offered for subscription by common stockholders
of record March 22,* 1957 on the basis of one new share
for each eight shares held
(with an oversubscription

privilege); rights to expire on April 9, 1957. Price—$22
share.. Proceeds—Together with funds from private
$750,000 5% first mortgage bonds, Series H, due

Century Controls Corp., Farmingdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
of principal amount.
Proceeds—For research and
development; expansion; equipment; and other cor¬
porate purposes. Underwriter — None.
90%

per

if Chemical Fund, Inc., New York
(by amendment) an additional 1,200,000
shares of capital stock (par 50 cents). Price—At market.
March 18 filed

May 15, 1987, for property additions and improvements
and to repay bank loans.
Underwriter—Dillon, Read &
Co. Inc., New York.

Proceeds—For investment.
Colorado

^ Btackstone Valley Gas & Electric Co.
March 21 (letter of notification) 90 shares of common
stock (par $50) to be offered to minority common stock¬
the

basis

one

for

each

six

•

B'uefield

Supply Co.,

basis

three

for

each

^ Colombia (Republic of)
Republics
(Colombia)

Underwriter—None.

Offering

—

• Brockton Edison Co.
12

Expected in

(letter of

potification) 478 shares of capital
(par $25) to be offered to minority stockholders on
the basis of one new share for each 13 shares
held; rights
will expire April 12, 1957. Price—$62 per share.
Pro¬
To

—

bank

prepay

67, Mass.

loans.

Office

—

dividual claims of less than $2,000 will be
cash.

Main St.,

construct

ture

and

Staats

Burma

Shore

stock
—For

Anaheim, Calif., to purchase
working capital.
Underwriter—
Co., Los Angeles, Calif.

for
&

later.

bidding.

—

•

„•

'v.

■;

161 East 37th St.,

System,

Inc.

(4/3)

record

for

April 3,

13 shares

subscription

1957,
held

April 2.

the basis of

(\yith
on

by common

(no par)

stockholders

one

new

oversubscription privi¬

April 22.

Price—To be fixed,

Proceeds—For financing construction work
Underwriter—To be determined by com¬

petitive
bidding.
Probable
bidders:
Merrill
Lynch,
Pierce, Fenner & Beane; White, Weld & Co. and R. W.

(jointly); Morgan Stanley & Co. Bids
—Expected to be received up to 11 a.m., (EST) April 3.

—

Pressprich & Co.

bidders:

—
Expected to be received up to 9 a.m. (PST) on
April 2 at Room 900, 433 So. Spring St., Las Angeles
13,
.

•

Bids

Calif.

of subsidiaries.

Merrill Lynch,
Pierce; Fenner & Beane; Lehman Bro¬
thers; Carl M. Loeb, Rhoades & Co. and Bear, Stearns &
Co. (jointly); Kidder,
Peabody & Co.; White, Weld & Co.;

Office

Underwriter—Landau Co., New York.

lege); rights to expire

(par $1).

Probable

Gas

offered

for each

California Electric Power Co. (4/2)
March 4 filed 300,000 shares of common stock
Proceeds—To repay bank loans. Underwriter
determined by competitive

of golf balls.

N. Y.

Columbia

named

sale

and

March 8 filed 1,675,415 shares of common stock

Mines,

—

promotion and advertising; working capital; and
new products.
Business—Manufac¬

development of

New York,

Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At
par ($1 per share). Pro¬
ceeds
For equipment,
exploration, drilling, working
capital and other general corporate purposes. Under¬
writer—To

Inc.
(letter of notification) 50,000 shares of common
(par five cents). Price—$3 per share. Proceeds

Feb./25

for

warehouse

In¬

paid in full in.

Colt Golf,

Underwriter—None.

Brunswig Drug Co., Vernon, Calif. (4/2)
March 11 filed 60,000 shares of common stock
(par $1).
Price—To
be supplied
by amendment.
Proceeds—To
inventories

60% in cash and 40% in the above-mentioned botes.

•

William

■

$70,000,000 of 4% notes dated March 1,
maturing in 30 monthly series, which are to be
partial settlement (together with cash pay¬
ments) of claims arising out of commercial transactions,
with Colombia which are subject to the provisions of
Decree No. 10 of Jan. 24, 1957, of the Republic of Co¬
lombia, which provides for the liquidation of claims
owing to United States banks and exporters as of Dec.
31, 1956, by payment in respect of each such claim of

stock

Brockton

and Banco de la

1957 and

issuable

April.

March

March 22 filed

Price—$17 per share. Proceeds—For advances to
wholly-owned subsidiaries and for general corporate

purposes.

held; rights to expire on April 2, 1957.
Price—$22.50 per share. Proceeds—For construction pro¬
gram. Underwriter—The First Boston Corp., New York.

ten

Co.

for each 3shares

Bluefield, W. Va.

new

1 T

Power

27 filed 74,175 shares of common stock
(par $5)
being offered for subscription by common stockholders
of record March 4, 1957 on the basis of one new share

March 12 filed 149,925 shares of common stock
(par $4)
to be offered for subscription by common stockholders
the

Central

Feb.

held; rights to expire April 12, 1957. Price — $105 per
share. Proceeds—For working capital. Office—55
High
St., Pawtucket, R. I. Underwriter—None.

inven¬

programs;

pnd for general corporate purposes. Underwriter—APA,
lac.; another subsidiary,
Minneapolis, Minn.

^market.

writer—None.

Underwriter—The First Bos¬

28* (letter

ceeds
com¬

Proceeds—For

Apache Oil Corp., Minneapolis, Minn.

March

To redeem outstanding bonds and for
improvement of
present facilities and other corporate purposes.' Under¬

held.

Machinery Co.

109,208 shares of

series-six;

Publications,

Inc., Topeka, Kan.
;
'
$1,000,000 of five-year 4% first mortgage
and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
bonds,

Beautilite Co.
Dec.

holders

Federal

Finance Corp.,
Kllleen, Texas
•Sept 5 filed 40,000 shares of class B common stock
(par
$5) and 400,000 shares of preferred stock (par $5) to be
yffered in units of 10 preferred shares and one common

construction.

new

(4/9)

first

March 25 filed

sale of

American Art Metals Co.
March 1 (letter of notification)

paper

* Capper

Co.^

Corp., New York.

rights to expire

<f<iare.

Electric

28 filed 577,883 shares of common stock (no par)
being offered for subscription by common stockholders
of record March 18, 1957 at the rate of one new share
for each 11 shares held; rights to expire on April 3, 1957.
Price—$31 per share. Proceeds — To repay bank loans

five

«L*ar

Feb.

around

stock (par one
Price—At market. Proceeds
For investment.
Underwriter—Fund Corp., 523 Marquette
Ave., Minne¬
apolis, Minn.

American

Underwriter—Morgan Stanley & Co,,

Gas

ISSUE

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; White, Weld & Co.; Lehman Brothers and
Dean Witter & Co. (jointly).
Bids—Expected to be re¬
ceived up to 3a.ii). ,(PST) on
April 9 at Room 900, 433
So. Spring St., Los Angeles
13, Calif.-.../'.:

'•

Baltimore

REVISED

and improvements and to repay bank loans.
Underwriter—To be determined by competitive bidding.

held; rights will expire on April 22, Price—To
supplied by amendment. Proceeds—For capital ex¬
penditures and to finance increased inventories and ac¬
New York.

ITEMS

$6,000,000

10 shares

«:ent).

stock

common

(4/8)

Electric Power Co.

filed

additions

Allied Resources Fund, Inc.
Dec. 14 filed 400,000 shares of common

Co.

if Bendix Aviation Corp.*
shares of

obligation, purchase tools and for

Underwriter—Mountain

Denver, Colo.

Wilcox

AD DITION S

SINCE

mortgage bonds due
1987.
Proceeds—Together with proceeds from proposed
sale of 300,000 shares of common
stock, for property

March 22 filed 288,264

Agricultural Equipment Corp.
1 (letter of notification) 500,000 shares of
stock

California

March

March
xnon

•

Proceeds

535,148 shares of capital stock (par $9)
to be offered for subscription by stockholders of record
April 5, 1957, on the basis of one new share for each

Price—At market.

filed

and for

■fa Addison Airport, Inc.
"March 20

(par $1).

•

—For investment.

stockholders, officers,
directors and employees for a period of 10 days, the un¬
sold portion to be offered publicly. Price—$21 per share.

Calif.

Registration

of common stock

capital stock and $25,000 of series A 6%% six-year con¬
vertible redeemable development notes
(the latter in
denominations

if Comanche Creek Oil Co.
'
- March 14 (letter of notification) 75,000 shares of common
stock. Price—At par ($1 per share).
Proceeds—For oil
drilling

expenses.

Office—1848 South Elena

Ave., Re-

dondo

Beach, Calif. Underwriter—^Samuel B. Franklin
Co., Los Angeles, Calif. * "
'£-;*
v
.

Volume

Number

185

5624

The Commercial and Financial Chronicle

(1497)

57
*

Commonwealth Investment Corp.
Jan. 14 filed 499,400 shares of common stock

For diamond drilling on
company's lands,
prospecting expenses, working capital and other corpor¬
ate purposes. Office—83
Campfield St., Irvington, N. J.
Underwriter—Roth & Co.,
Maplewood, N. J.
Y

Corp. of America
(par $5),
exercise of options to purchase com-

shares heretofore

mon

hereafter issued by the

com-

eligible officers and employees of die company
Stock Option Plan

pany to

and its subsidiaries pursuant to its

Y -for Key Employees..

Conticca International Corp., Chicago, III.
W March 13 filed 558,100 shares of class A common stock
»; >

v.;.

(par $1). Price—$5 per share.

.tepn debt in the total
'I for

To discharge

approximately $1,030,000;

sum of

—

York 17, N. Y-J and Shaw & Co., San Marino, Calif.

★ Continental
■

—

equipment; and for working capital. Under-Allen Shaw & Co., 405 Lexington Ave., New

new

writers
,

Proceeds

current notes payable* including bank loans, and long

Turpentine

.«V-Miss.

Yf-;Y 7

Rosin

Corp.,

Laurel,

7:Y

stock

new

for each 100 shares held.
and of debentures at

held

each

for

and $300

debentures

Price—Of stoqk, $15 per share;
amount. Proceeds—For con¬

face

March 28

y,Y;t

Feb.

being

filed

;

new

14, 1957
rights to expire

-Y. Y\;Y:7 *7"'

^-Y"

Y':U'VY f-y

ISSUE
April

Aluminum Co. of

Co.,

Inc.)

(Bids

Otis,

to be

(Straus,

Brunswig Drug Co.__

(The First Boston Corp.

Common

Electric Power

California

*:*

;

(Bids

Common

Co.-

United

!'•„

•

■

c
,

■

$10,000,000

Inc.

Revlon,

Common

Reynolds Metals Co.l—_

■

Vitro Corp. of

America178,646

(Bids

(F.

& Howell Co

Co.
(Lehman

(Offering

547,678

iMcDonald

—Common

(Offering

(A.

Lake Lauzon

(Steven

Wrigley
(Offering

—underwritten

Allen

April 9

ACF-Wrigley Stores, Inc,

Co.)

2,069,150 shares

(R.

PST) $6,000,000

Dfckson

Bonds

Authority of the European Coal and
Steel Community
-Bonds and Notes
(Kuhn
Loeb & Co., The First Boston Corp. and
Freres

& Co.)

$35,000,000

York

Preferred

190,000

noon

Inc.)

National Fuel

May 1

(Thursday)
invited)

11:30

Debentures

June 3

(Bids to

$15,000,000

(Monday)

-^Debentures
about

$500,000

(Tuesday)

Northern States Power Co.

June

(Wis.)

Bonds

invited) $10,000,000

Common

1,000,000 shares

(Wednesday)

Bonds

June 6

(Bids

$25,000,000

(Thursday)
'

Georgia Power Co

Bonds

a.m.

EDT)

$15,500,000

(Monday)
Common

stockholders—may be negotiated)

about

112,988 shares

June 11

Debentures
Consolidated

125,000

Natural

(Eids

Class A

Co.)

11:30

June

common

(Tuesday)
Gas

a.m.

(Bids to be invited 1

Telegraph Co

Debs.

$70,000,000

October

RR.

Trust

Ctfs.

(Tuesday)

Utah Power & Light Co
(Bids

Bonds
$10,000,000

Debentures
$25,000,000

(Tuesday)

(Bids to be invited)

$6,000,000

Laclede Gas Co

EDT)

Southern Bell Telephone &

(Wednesday)

invited)

EST)

Government Employees Corp
(Johnston, Lemon & Co.)

June

$30,000,000

Equip.

$2,475,000

(Tuesday)

a.m.

$70,000,000

Portland Gas & Coke Co

Chicago, Milwaukee, St. Paul & Pacific

(Bids

-Bonds

invited)

Gas Co

(Bids

(Offering

Morgan

Equip. Trust Ctfs.

(Monday)
&

(Bids to be

Common

Equip. Trust Ctfi.

Associated Truck Lines, Inc
Podesta

$2,700,000

invited)

April 29

Common

underwritten

(Bids to be invited)

Northwestern Bell Telephone Co
to

May 23

100,000

about $200,000,000

(Bids to be invited)

(Tuesday)
CST)

Bonds
$15,000,000

Virginia Electric & Power Co

Co.,

L&ihis

Minneapolis & St.

(Tuesday)

June 4
Securities

Bonds

Telephone Co._

Class A common
&

(Monday)

EDT) $30,000,000

stockholders—to

Common

Co.)

High

Lazard

Securities

Bonds

International Business Machines
Corp

Bonds

Webster

Ju—•

about $8,000,000

(Bids to be invited)

(Monday)

April 23

(Cruttenden,

(Tuesday)

California Electric Power
(Bids 9 a.m.

175,000

-«

of Colorado-'-

noon

May 21

(Wednesday)

Peabody

invited)

May 28

Pressed Steel Co.—

(Bids

Common

security holders of

Curtis)

Bonds
'■
■"

(Thursday)

Florida Power & Light Co

(Bids

Common

Co. and Stone & Webster
Corp.) $10,000,000

(Bids

Randall & Co., Inc.) $300,000

Properties, Inc

(Bids

300,000

/>,"

about $6,500,000

Reading Co.

Line Corp

Stevens Markets, Inc

Co, Inc.) 50,000 shares

Common

$50,000,000

200,000

535,148 shares

Mines, Ltd

350,000

(Shearson, Hammill & Co. and Underwood, Neuhaus & Co.)

Common
Becker &

New

Houston Oil Field Material Co., Inc,

stockholders—to be underwritten by Morgan

$4,200,000

Sto«e

April 22

Common

Boston Edison

Katz Drug

(Kidder,

Gas Co
Common
stockholders—no underwriting) 20,000 shares

Berkshire

and

April 17
Standard

(Monday)

Stanley & Co.)

(Offering

Co.)

Corp

Bonds

May 20

425,000 shares

$3,000,000

(Wednesday)

Light

to be

Common

Co.

Weld

invited) $1,200,000

April 8

Common

Corp.)

(White,

& Wilcox Co

Bab cock

Weld

Gas

(Bids

$25,000,000

& Common

Transcontinental Gas Pipe Line Corp

Equip. Trust Ctfs.

Washington

Ypublic Service Co.

stock

Peabody

1,537,500 B shares

Equip. Trust Ctfs.

Jackson

(Thursday)

—

(Bids

.....

(Tuesday)

EST)

and

(Tuesday)

(Bids to be invited)

Common

noon

Common

Stanley & Co.)

Kidder,

Webber,

$3,450,000

EST)

p.m.

April 4

Virginian Ry.

and

Equip. Trust Ctfs.

Maryland Ry
1

(Paine,

(White,

stockholders—underwritten by Bioren & Co.)

(Bids

Co,

EDT) 426,988

Preferred

in United States)

common

Transcontinental Gas Pipe

92,500 shares

Western

(Monday)

May 16

Roxbury Carpet Co

Service Co

•»

-—Bonds

•Y Florida Steel Corp

of Standard Gas & Electric Co.

underwriting)

Southeastern Public

'♦

.Common

stockholders

—without

•

$3,585,000

1
(Bids

Brothers) $10,000,000

Pittsburgh Rys. Co.
•

EDT) $14,500,000

;

Debentures &

Ry.

Debentures

Bonds

May 15

Cincinnati, New Orleans & Texas Pacific

-Common
shares

(Thursday)

a.m.

El Paso Electric Co.—

Co., Inc.) $800,000

(Charles Fiohn & Co.)

—

Freres & Co.)

(Glore, Forgan & Co.) 369,600

$10,000,000 of debentures and

Securities Corp.,

Equip. Trust Ctfs.

Central & South American Acceptance
Corp.

Common

Governor Co

Flintkote

invited)

April 16

Columbia Gas System, Inc
Common
(Offering to stockholders—Bids 11 a.m. EST) 1,675,415 shares
Fisher

Co.)

(Wednesday)

(Harriman Ripley & Co. Inc. and Lazard
100,000 shares

.Common

(Bids to be invited)

(Monday)

Artists Corp^

Eberstadt &

page

$30,000,000

Webster

New York State Electric & Gas

$6,854,254

Quebec Natural Gas Corp.—Debentures

Bonds

Chicago, Rock Island & Pacific Ry.

——^Common
800,000

(Bids to be invited) $25,000,000

(Lehman Brothers and Allen & Co. in United
States) $15,000,000

United

$6,000,000

underwriting)

(Lehman Brothers and Allen & Co.

Co. Inc.)|

(Bids 3:45 p.m.

Common

Quebec Natural Gas Corp

$12,000,000

EST;

a.m.

April 3
Bell

by Blyth &

EST)

Co.)

^*y

;

General Aniline & Film
Corp

Debentures

"tiVust' 'CMmI
be

•

White,

Bonds

$25,000,000

May 13

(Amos Treat

Electric

Massachusetts

Western
'

190,000

Y,>

v ....

—

dealer-manager) 119,522 shares

(Bids 11

Bonds

bank

Underwriter

(Tuesday)

invited)

May 9

Herold Radio & Electronics Corp

Common

——

stockholders—underwritten

(Offering to stockholders—Stone

G. H. Walker & Co.) 220,000 shares

a.m.

April.

Alabama Power Co.

(Thursday) Y

April 15

United

(Offering

(Bids

States Foil Co
Class A common
(Offering to stockholders—underwritten by Dillon, Read &
Co. Inc. and Reynolds & Co. Inc.) 746,270 shares

may be

Common
/

Baltimore & Ohid'

Common

stockholders—underwritten by Dillon, Read &
Co. Inc. and Reynolds & Co., Inc.) 914,078 shares

To reduce

El Paso Electric Co

Corp

stockholders—no

(Offering to
•,

241,020 shares

Co.)

and

(Schwabacher

—

(Reynolds &

126,000

United St^te§, ^easing Corp.
*

(Smith, Barney & Co. and C. C. Collings & Co., Inc.)

(Bids

Illuminating Co. of New Haven„_:_Common

(Offering

Debentures

I-T-E Circuit Breaker Co.
/•;

Inc.)

McDowell)

—

Continued

$6,600,000

Mississippi Power Co

300,000 shares

(Bids 9 a.m. PST;

7' Y

May 14

April

Weld & Co., New York.

Iowa Electric Light & Power Co

(William R. Staats & Co.) 60,000 shares

Proceeds

loans and for new construction.

Equip. Trust Ctfs.

invited)

Blosser &

preferred

new

held; rights to expire

share.

per

stockholders of

one

Cincinnati Gas & Electric Co

$3,900,000

(Goldman, Sachs & Co.; Halsey, Stuart & Co. Inc.; and
Lehman Brothers) $25,000,000

(Tuesday)

April 2

Price—$100

common

rate of

-Common

(Roth & Co.) $280,000

1957, at

May 7

Roberts Co.

Common

-Debentures

Inc.)

Sears Roebuck Acceptance

Cougar Mine Development Corp

common and

18,

share for each 56 shares

Common

(Scott, Horner & Mason,

$225,000

subscription by

7;7YY7Yv - Y'

$5 convertible second pre¬
(no par), being offered for

ferred stock, series of 1957

Corp. and Morgan Stanley & Co.) $125,000,000

(Gearhart

Y El Paso Natural Gas Co.
Feb. 26 filed 300,000 shares of

(Wednesday)

Canada, Ltd

Norfolk & Western Ry

Equip, Tr. Ctfs.

CALENDAR

National Lithium Corp

Bonds

(by amendment) an additional 150,000
participating interests in the Trusts. Price—At
market. Proceeds—For investment.
V
" Y •••'-1;'

record March

Y;--

(letter of notification) 7,272 shares of common
stock (par $10) to be offered to
employees pursuant to
the 1957 Employees' Stock Purchase Plan
at 95% of the
closing price on the New York Stock Exchange on the
day allocations are made. Proceeds—To purchase said

(Monday)

April 1

March 13

Common

D,h Blauner

★ Eagle-PScher Co.

filed

units of

oversubscription privilege);,
April 8, 1957. Price—$25 per share.-

—None.

March 29 (Friday)

(Milton

shares for each 10 shares held

(with

(The First Boston

Nyvatex Oil Corp
.i;

300,000 shares of capital stock (no par)
subscription by stockholders of the

basis of three

Underwriter—Kidder, Peabody & Co.
,Y
7 Y-;

★ Elfun Trusts, New York

offered for

Overnite Transportation Co

•

common and capital stocks of
Blackstone Valley
Gas & Electric Co., Brockton Edison
Co. and Fall RiVer
Electric Light Co.

March 22

Duval Sulphur & Potash Co.

;

(Bids noon EST) $3,620,000

yYyyy^.,:''"

chase

(Bids 11:30 a.m. EST) $6,000,000

;

oversubscription privi¬
lege); rights to expire on April 4, 1957. Stone & Web¬
Corp., Boston, Mass., will act as subscrip¬
tion agent.
Price—$30.50 per share. Proceeds—To pur¬

(letter of notification) 2,880 investment units
Price—$25 per unit. Proceeds
—For" equipment and working
capital. Office—324 Mi W.
Main St., Denison, Tex.
Underwriter—None.

.Common

Spokane, Portland & Seattle Ry.

Okio-

Cincinnati 1,

ster Securities

under offer of rescission.

(Dillon, Read & Co. Inc.) 300,000 shares

■7

Utilities Associates
Feb. 18 filed 89,322 shares of common stock
(par $10)
being offered for subscription by common stockholders
of record March
20, 1957 on the basis of one new share
for each 12 shares held
(with an

★ De-Vel-Co. Mineral Development Co,

(Thursday)

New Orleans Public Service lnc._.

Eastern

—

NEW
Falcon Seaboard Drilling Co

■

Office—American Bldg.,
Underwriter—None.

Proceeds—For general corporate purposes. Underwriter

securities.

•

March

Y March 12 (letter of notification) 11,400 shares of capital
stock (par $5) and $125,000 of 20-year 5% subordinate
debentures dated March 31, 1957 to be offered in denominations of $100 to present stockholders, officers and
employees of the corporation at rate of 3/10ths of a share
of

•

March

'..Y-/

★

Proceeds

March 22 filed 600,000 shares of common stock

•

Shamrock, Fla.
Underwriter—
\
" ' y -•
Cougar Mine Development Corp. (4/1)
March 15 (letter of
notification) 560,000 shares of com¬
mon stock
(par one cent). Price — 50 cents per share.

★Container

deliverable upon
;

purposes

None. *

share.

per

(

(par $1).
Proceeds—For working capital to
expand company's business and operations. Office—
Sioux Falls, S. D. Underwriter—None.

Price—$4

•»_

struction

•

—

invited)

(Bids

invited)

Bonds

$15,000,000

Utah Power & Light Co

_N
400,000

Common

The Commercial and Financial Chronicle

(1498)

Gob

Continued from page 57
Esk

;■

\-'

Inc.

Manufacturing,

(letter of notification)

Lake City,

Utah.

Proceeds — To prepay notes toOffice—85 N. Main St., Fall River, Mass. Under¬

writer—None.

Marshalltown, Iowa (4/3) •stock (par $1),
of which 184,800 shares are to be sold for the account of
the company and 184,800 shares for selling stockholders/
Pricft—To be supplied by amendment. Proceeds—To re¬
Governor

Fisher

Co.,

March 14 filed 369,600 shares of common

that

if Hercules Powder Co., Wilmington, Del.
participations in
company's Employee Savings Plan, together with 132,000
shares of its common capital stock which-may be pur¬

cent).

•

^ Flexible Tubing Corp., Guilford, Conn.
of first mortgage bonds due 1972

(with common stock purchase warrants attached) and
32,000 shares of common stock (par $1). Price—To be
supplied by amendment. Proceeds—Together with pro¬
ceeds from new bank loans, to repay present bank loans

Flintkote

Co.

filed

(4/3)

of sinking fund debentures
April 1,1977. Price—To be supplied by amendment.
Proceeds—For expansion program.
Underwriter—Leh¬

amendment.

$10,000,0()0

Proceeds

if Florida Instruments,

Hilo

Light Co., Ltd.,

common

rate of two
to

shares for each

March 11 filed 600,000

Price—$5

cents).
tion of

per

shares of common stock (par 10
share.
Proceeds—For construc¬

50-unit hotel-motel and various other related

buildings and improvements; furniture and equipment;
and working capital and other corporate purposes. Of¬
fice—Tom's

Harbor, Monroe County, Fla.

(par
Proceeds—
stockholders. Underwriters—McDonald & Co.,

"$i)." Price—To be supplied 1)y amendment.
To selling

Florida

Telephone Corp.
filed 128,918 shares of

Feb.

the

unsubscribed

shares.

Price

$16.50

ment

ner

March
the

filed

850

certificates

and

lands and

convey

beneficial

interest

dors

character oLreal property.

Proceeds

—

open

Price—At

par

and equip two

($3

new

per

share).

Inc.
Dec. 3 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share).
Proceeds — For
working capital. Office — 1115 South Washington St.,
Marlon, Ind. Underwriter—Sterling Securities Co., Los
Angeles, Calif.
(5/13)

Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney Geenral of the United States.

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc.; Kuhn, Loeb & Co.,
Lehman

Brothers

and

Glore,

Forgan

Co.

(jointly).

Bids—'To be received up to 3:45 p.m. (EDT) on May 13
at Room 654, 101 Indiana
Ave., N. W., Washington 25,
D. C.
General Public Utilities Corp.
Feb* 6 filed 646,850 shares of common stock (par $5) be¬

ing offered for subscription by common stockholders of
March 8, 1957, at the rate of one new share for
held; rights to expire on March 29, 1957.
[Each holder of less than 15 shares will, in lieu of the
warrant otherwise deliverable to him, receive the cash
equivalent thereof.]
Price—$32 per share. Proceeds—
record

each 15 shares

-To

repay

domestic

bank

loans

and

subsidiaries.

for

further

Underwrite*

investments

None.- Merrill

Lynch, Pierce, Fenner & Beane, New York, will act
clearing agent.

supplied
loans.

amendment.

Underwriter

offered

to-certain

Holly

holders

common

American

Industrial

Ltd.

Boston

Development. Bank.

Israel

and will

pounds

extend the medium
in Israel.

used

working

and long-term credits to

capital

enterprises

Office—Tel

Aviv, Israel/ Underwriter—Israel
Securities Corp., New York.
>
•*/■ ■
<
.

★ Italian

Inc.
/
March 18 (letter of notification) 53.6C0 shares of com¬
mon stock (par one cent).
Price—$5.50 per share.. Pro¬
ceeds
For purchase, remodeling and renovation of
premises at 383 Washington St., Newark, N. J.; for
Scene,

—-

working capital and other corporate
100

Central Park

l-T-E

March

Clrc«H

•

Breaker Co.

Office—

purposes.

South, New York, N. Y.

—None.

Underwriter

(4/2) f

filed $10,000,000 of convertible subordinated
debentures due April 1, 1982. Price—To be supplied by
amendment.
Proceeds.— To. reduce short-term bank

com¬

loans.

35,000
on

(par $15).

First

Feb. 13 filed $2,500,000 of perpetual 6% debenture :stock.
Price — 110% of par.
Proceeds—To be converted into

common

stock

Boston

Proceeds—To

The

—

remainder, 210,000

Inc.;

distributor.

Underwriters—The First

program.

bank

Israel

and

Underwriters—Smith, Barney & Co., New "^ork,
C. Collings & Co., Inc., Philadelphia, Pa.

Jacobs

exchange for 64,696 shares of Van Dorn
stock. Underwriter—None.

Juneau & Douglas Telephone Co.

Jan.

Land

(letter of notification)

debentures due

1972,

Price

$295,000 of 6%

15-year

At face amount

(in de¬
$1,000 each). Proceeds — For additions
improvements. Office—139 W. Second Street, Ju¬

nominations
and

—

Alaska.

neau,

Underwriter—Grande & Co., Inc., Seattle,

Wash.

•

;

Co.

To pay shorl-iterm loans and for working capital. Un¬
derwriters—McLaughlin, Cryan At Co. and Gearhaw *
Otis, Inc., both of New York. Offering—Date indefinite.

common

Houston Lighting & Power Co.
Feb* 25 filed 665,760 shares of common stock

(F. L.)

Oct/ 4 filed $3,000,000 of 6% convertible debentures duo
Nov. 1, 1966. Price—100% of principal amount. Proceeds

Import Corp., Houston, Texas
Feb. 27 (letter of notification) 100,000 shares of common
stock. Price—At par ($3 per share). Proceeds—For in¬
ventory, working capital, etc.
Underwriter—Benjamin
& Co., Houston, Tex.

Underwriter

Corp., New York

date in

Holy

con¬

Juices,

General Aniline & Film

Services;
as

Corp., New York.

to certain

Iron Works

supermarkets.

Office—20 "O" St., S. E., Washington, D. C.
—Rudd, Brod & Co., Washington, D. C.

Fruit

reduce

future

Town, Inc., Washington, D. C.
(letter of notification) 100,000 shares of 8%
preferred stock.

Diversified

March 27 filed 75,000 shares of common stock

Price—To

basis; 38,333 Holly common shares will be
finders, 60,000 shares to certain ven¬
property; 1,016,595 shares will be reserved
against conversion of preferred stock;1 and the remain-^
ing 388,176 are to be reserved for possible issuance at a

offered

Food

vertible

Investors

★ Iowa Southern Utilities Co.

the

—

Corp., New York; and G. H. Walker & Co., St. Louis, Mo.

six-for-one

.Underwriter—None, v

Feb. 1

are

Manager

construction

shares held; rights

305,204.52 shares of Mount Vernon

instalment

per

every

shares of Van Dorn Iron Works Go.

certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
Price—$1,000

stock.

Trust, Pompano Beach, Fla.

Trust.

each

for each of the
mon

& Beane, both of New York.

Florida

for

10"

instalment

Iowa Electric Light & Power Co.
(4/11)
March 19 filed 220,000 shares of common stock
(par $5).
Price—To be supplied by amendment. Proceeds — For

the basis of one Holly series A
406,638 shares of Mount Vernon
preferred stock and 2Vz shares of Holly common stock
stock

common

Inc.

Minneapolis, Minn., which will also act

Holly Corp., New York
\
filed 406,638 shares of 50-cent convertible pre¬
ferred stock, series A (par $5), and 2,476,116 shares of
common stock
(par 60 cents), of which all of the pre¬
ferred
and 763,011.3
shares of common stock are to
be offered in exchange for Mount Vernon Co. preferred
share

per

America,

★ Investors Variable Payment Fund, Inc.

expire

and

share*
Proceeds—To retire $1,500,000 of bank loans and for ad¬
ditions and improvements to property.
Underwriters—Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen—

March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬

Jan. 25

21
common stock (par $10)
being offered for subscription by common stockholders
of record March 12, 1957 at the rate of one new share
for each three shares held; rights to expire on April 1,
1957. Employees may subscribe for not more than 3,000

class

certificates; $75,000,000*
certificates; and $200,000,000 of
instalment certificates. Office—Minneapolis.

15"

"Series 20"

U nder writer—N one.

Cleveland, O.; and Kidder, Peabody & Co., New York.

shares of

■Minn..

March 22

ic Flordia Steel Corp., Tampa, Fla. (4/16)
March 22 filed 300,000 shares of common stock

Syndicate

"Series

if Hollingsworth Company Enterprises, Inc.
(letter of notification) 250,000 shares of com¬
mon stock (par
$1) to be issued upon exercise of rights
to pay said stock at par ($1 per share). Price—10 cents
per right.
Proceeds—For general corporate purposes.
Office—514 Hempstead Ave., West Hempstead,'^N. ' Y.

Underwriter

—Keystone Securities Co., Inc., Philadelphia, Pa.

100

$2,500,000 of "Series 6" instalment certificates; $15,000,000. of

the

Florida^Southern Land Co.

units consisting of 100

stock and

common

fully paid
certificates; $500,000 of "Series B" fully paid certificates;

on April 6, 1957. Any unsubscribed shares plus
remaining 6,060 shares to be offered to employees,
and the balance, if any, to the general public. Price—
To stockholders, $24 per share; to employees, $28 per
share; and to general public, at prevailing market price.
Proceeds—To repay bank loans and for expansion and
construction program.
Underwriter—None.

Inc., Portland, Ore.

■"

stock.

common

^Investors

Hilo, Hawaii

seven

■:

March 18 filed (by amendment) the
following additional
securities: $1,000,000 of "Single Payment"

stockholders of record March 5, 1957 at the
new

share.
Proceeds—To equip and
launderettes and for working cap¬
to be supplied by amend¬

Price—$1,501 per unit. Proceeds—To
acquire real property and for working capital. Offiee—
315 Angelus, Memphis
12, Tenn. Underwriter—None.

Feb. 7 filed 51,380 shares of common stock (par $20), of
which 45,320 shares are being offered for-subscription

ing capital and other corporate purposes. Office—606
Failing Bldg., Portland.4, Ore. Underwriter—Star Sales,

Electric

all the outstand¬

per

super

shares of class A
B

To make loans to firms in the

—

Community for expansion of coal mines, coking plants,
power plants and iron ore mines.
Underwriters—Kuhn,
Loeb & Co., The First Boston Corp. and Lazard Freres
& Co., all of New York.
-

Brothers, New York.

Inc.
(letter of notification) 10,000 shares of 7%
non-cumulative preferred stock. Price—At par ($10 per
share). Proceeds—For research and development, work-

Herold Radio &

High Authority of the European Coal and Steel
Community (4/9)
March 18 filed $25,000,000 of secured bonds
(seventh
series) due 1975 and $10,000,000 of serial secured notes
(eighth series) due 1960-1962. Price—To be supplied by

due

five

if Interstate Holding Corp. ~
March 8 (letter of notification)

Underwriter—

working capital.
P. W. Brooks & Co., New York.
expansion and

in exchange for

Underwriters—Names

ment.

to be sold to underwriter at par and the remaining
12,500 shares issued to Alton Blauner as a finder's fee
at par. Price-—Of preferred, $5 per share. Proceeds—For
working capital. Office—Mount Vernon, N. Y. Under¬
writer—Amos Treat
&Co. Inc., New York.
Offering—
Expected first or second week of April.
"

March 26 filed $600,000

for

ital.

are

—Glore, Forgan & Co., New York.

Price—$1

establish

Electronics Corp. (4/15-19)/ v
160,000 shares of 6% cumulative convertible
preferred stock (par $5) and 25,000 shares of common
stock (par 25 cents).
Of the latter issue, 12,500 shares

bank loans and for expansion program. Business—
Manufactures automatic control equipment. Underwriter

exchange for

185,000 shares each of Interna¬

International Duplex Corp., San
Francisco, Calif.
21 filed 500^000 shares of common stock
(par one

Feb. 27 filed

pay

Equity and Finan¬

shares of Equity common owned by Fre¬
Corp. will be tendered in acceptance of the Equity
Underwriter—None.
-L

Dec.

stock/

142,000

mont

thereto.

•;

the

stock

common

stock

common

common stock of Investors Financial
Corp.
and Group Equities, Inc. International has been informed

exchange offer.

receive

March 21 filed $1,950,000 of participations in company's.
Thrift Plan for Employees, together with 30,000 shares
of common stock
which may be purchased pursuant

suant thereto.

Thursday, March 28, 1957

ing shares of

March 20 filed $5,000,000 of interests or

common

International

are

tional

Underwriter—Bruns, Nordeman & Co., New York,

$52 per share.

—

March

cial

increase the number of stores; and
working capital. Office—41 Stukely St., Providence,

share-for-share basis in exchange for
stock, and the remaining 135,QUO
Financial General Corp. on a basis of 1%
on

share of Financial

one

^Harbison-Walker Refractories Co.

Price

man

Incv

operation; to

R. I.

(letter of notification) 291 shares of capital
stock (par $25) to be offered to minority stockholders
on the basis of one new
share for each 16 shares held.

March

for

Light Co.

and

snares

Shops of America,

(letter of notification) 240,000 shares of common
(par 30 cents) of which 86,610 shares are being

N. Y.

March

banks.

store

■

if Fail River Electric

Equity Corp.
Equity Corp.

skock

sold pursuant to outstanding warrants. Price—$1.25 per
share.
Proceeds — For additional discount department

150,000 shares of capital
stock (par $1). Price — $2 per share.
Proceeds — For
manufacture and sale of molded plastic items. • Office
100 West 10th St., Wilmington 99, Del.
Underwriter—
Ackerson Hackett Investment Co., Metairie, La. and Salt
Feb.

Jan. 21

(no

par),

Katz

Drug Co., Kansas City, Mo.

(4 8-12)

which 612,260 shares are being offered for
subscrip¬
tion by common stockholders of record March

March 19 filed 50,000 shares of common-stock (par
$1).
Price — To be supplied by amendment. Proceeds — For

working capital.

the

rate

one

new

for

each

25,

1957

held

Chicago, 111.

(with an, oversubscription privilege); rights to expire on
April 15. The remaining -53,500 shares are being offered
for subscription
by employees. Price — $43 per share.
Proceeds—To
program.

reduce

bank

loans

and, for

Houston Oil Field Material Co., Inc.

105,000

pursuant

company's

pursuant thereto.
•

publicly and
restricted .stock

„

Feb.
to

loans,

for

capital

require¬

263,048 shares of

subscription by

March

19,

International Bank of Washington* D. C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 1Q<>% of
principal amount. Proceeds—
For working capital.
Underwrite*—Johnston, Lemon &
Co., Washington, D. C.

share.

—

International Capital Corp;, Des Moines, Iowa
Nov.

filed

370.000

cents), of which 185,000 shares

common

are

st-^ck

(par

four
To

to be offeicd by The

(par $1)

months

from

for each share subject to purchase
The subscription offer will
expire

effective

stockholders, $3.25
Proceeds^—To

per

date of offering.
Price
share; and to public, $4 per

equip and stock

warehouse

and

any
new
stores that may be acquired. Underwriter—
Peters, Writer & Christensen, Inc., Denver', Colo. Offer¬
v

ing

—

Cancelled.

March

financing has been cancelled;'
;

stock

rants

under such warrants.

Office

common

for

Houston, Tex.
Underwriters—Shearson, Hamraill & Co., New York; and
Underwood, Neuhaus & Co., Houston, Texas. •

capital.

•

*.*

common stockholders
holders of certain outstanding stock purchase war¬
on
the basis of one share for each share held of

record

bank

filed

be offered

$1,400,000 short-term
working

King Soopers, Inc., Denver, Colo*

and

...

„

(par $1),

option plan for certain offices and key employees. Price
—To be supplied by amendment. Proceeds — To retire
ments

■

Inc.

filed

1,866 participations in company's Thrift
Plan, 468 Participations in company's Savings Plan, and
6,203 shares of common stock which may be purchased

construction

(4/22-26)

if Kerr-McGee Oil Industries,
March 21

Underwriter—None.

March 15 filed 305,000 shares of common stock
of which 200,000 shares are to be offered

Underwriter—A. G. Becker & Co. Inc.,

•

was

announced

...

Lake Lauzorr Mines Ltd., Toronto, Can.

this

(4/8-12)

March 18 filed 750,000 shares of common stock
Price—40 cents per share.
Proceeds—For

(par $1).

drilling

ex-

Volume

purposes.

York.

Leslie

Jan.

stock

(par $1). Price—$2 per share.

Retirement Plans,

March

Proceeds—For spe¬

Loyal American Life Insurance Co., Inc.

Goddard & Co., Inc., Boston,

•

(par $1)

officers and employees of this company
affiliate, Mason Mortgage & Investment Corp.

National

Underwriter

and

preferred stock (par $50) and 5,000 shares of com¬
mon stock
(par $1). to be offered in units of one share
of each.
Price—$60 per unit.
Proceeds—For working
tive

Price—At
writer

Bandini Blvd., Los Angeles, Calif.

(Province

Michigan Wisconsin Pipe Line Co.
,
July 2, 1956 filed $25,000,000 of first mortgage pipe line ;
bonds due 1976. Proceeds—To pay off short term bank

The

New

•

Power

Commission

repay

Bruns¬

bank loans.

New Canaan

Co., New Canaan, Conn.
Dec. 14 (letter of notification) 2,000 shares of class A
stock being offered for subscription by stockholders be¬
ginning March 20,-1957; rights to expire on April 11,
1957.
Price—At par ($25 per share). Proceeds—To re¬
duce a certain note indebtedness incurred by the com¬
pany in connection with the recent purchase of The
Ridgefield Water Supply Co. Underwriter — Glidden,
Morris & Co., New York.

it Midland Telephone Co.
(letter of notification) 170,154 shares of comstock (par $1) of which 151,487 shares to be offered
to stockholders through rights and 18,667 shares to be
offered to public.
Price — To stockholders, $1.25 per
share and to public,™ $1.50 per share. Proceeds—For re'tirement of outstanding bonds and working capital. OfMarch 13

;mon

•

New
Dec.

Gas

contributions to the issued

ceeds—To purchase shares

not to exceed $50,000
Employees' Thrift Plan. Pro¬

Mar eh
mon

For

(no

par).

bonds due
Proceeds—For construction program. Un¬
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.;
Blair & Qo. Incorporated; Eastman Dillon, Union Secu¬
rities & Co. -and Equitable Securities Corp. (jointly).
Bids—To be received up to 11 a.m. (EST) on April 11, at
office of Southern Services, Inc., Room 1600, 250 Park
Avenue, New York 17, N. Y.

;

April 1, 1987.

derwriter—To

Mississippi Valley Portland Cement Co.
1,600,000 shares of capital stock (no

par), of
which 708,511 shares are subject to an offer of rescission,
p^e—$3 per share. Proceeds—For completion of plant,
provide for general creditors and for working capital.
Office—Jackson, Miss. Underwriter—None, offering to
Dec. 26 filed

be made

through company's own agents.

it Mon-O-Co. Oil Corp.
j
March 6 (letter of notification) 4,000 shares of class A
common
stock (no par) and 96,000 shares of class B
common
stock (no par) to be offered in units of one
share of class A and 24 shares of class B common stock
to stockholders of record Dec. 3, 1956 on the basis of
one
unit for each 90 shares of class A and/or class B
common
stock held. Price—$75 per unit.
Proceeds—

capital. Office—504V2 N. 29th St., Billings,
Underwriter—None.

For working

Mont.

Monticello Associates, Inc.
Feb

of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds — For

18 (letter

stock.

expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
capital

the

basis of two

(par $1)
of Lynn

NEES

Dealer-Managers—Paine, Webber,
EV S. Moseley & Co., both of

and

(George)
filed

(by

Fund of Boston
amendment)

additional

1,500,000

Proceeds—For investment.

(

20,000 shares issued fo underwriter. Price—$5 per share.
/Proceeds—To retire $125,000 of outstanding 15% deben¬

Piiblic

Service,

•

Inc.

■©

(3/28)

V first mortgage bonds due 1987.«

construction

program.

Underwriter—To

by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld & Co.; Blair &•
The First Boston Corp.; Equitable Se¬
Dillon, Union Securities &

curities Corp. and Eastman
Co.

tures

(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co.

Inc.

(jointly); Kidder, Peabody & Co. and Stone & Web¬
Securities Corp. (jointly); Lehman Brothers. Bids
—To be received up to 11:30 a.m. (EST) on March 28 in
Room 2033, Two Rector St., New York, N. Y.
ster

Inc.;

Co., Santa Ana, Calif.

of 5% cumulative participate
ing preferred stock and 7,500 shares of common stock.
Price—At par ($10 per share). Proceeds — To liquidate
•a
bank loan of $178,635; increase inventories; and for
working capital and general corporate purposes. Under¬
Dec. 27 filed 75,000 shares

$173,180 debt to Trans-Union Produc¬

and

vision releases.

for

working

capital.

Business—Tele¬
%Co., New

Underwriter—E. L. Aaron

York.

(4/15-19)

f Quebec Natural Gas Corp.
March

15 filed

$25,000,009 of first mortgage bonds due
1980. Price—To be supplied by amendment. Proceeds—
To acquire gas distribution and other related facilities in
Montreal, Canada, from Quebec Hydro-Electric Com¬
mission.
Co.

Underwriters

—

Lehman Brothers and Allen &

the United

States; and Nesbitt Thomson & Co/
Ltd.; Wood, Gundy & Co., Ltd. and Osier, Hammond At
Nanton, Ltd. in Canada.
•

Quebec Natural Gas Corp. (4/15-19)
15 filed $15,000,000 of subordinated debentures
due 1985 ahd 750,000 shares of common stock (par $1)
to be offered in units of $500 of debentures and 25 shares

March

stock- Price—To be supplied by amendment. Proceedb
acquire properties from Quebec Hydro-Electric

—To

Underwriters—Lehman Brothers and Allen

Commission.
&

Co., in the United States; and Nesbitt Thomson & Co/
Ltd.; Wood, Gundy & Co., Ltd. and Osier, Hammond &
Nanton, Ltd. in Canada.

Raymond Oil Co., Inc., Wichita, Kansas
29 filed 200,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—For exploration, development and operation of oil and
gas properties. Underwriter—Perkins & Co., Inc., Dallas,
Tex. Offering—Postponed indefinitely.
Jan.

Raytone Screen Corp.
15

Feb.

Nic-L-Silver Battery

well

tions,

of
s

Orleans

Co. Incorporated;

Office—424 Title & Trust Bldg.,
Underwriter—None.

Mississippi Power Co. (4/11)
March 15 filed $6,000,000 of first mortgage

Curtis

Proceeds—For

mining expenses.

porate purpose. Office—Minneapolis, Minn. Underwriter
—None.. Philip B. Harris (Vice-President of Northwest¬
ern National Bank of Minneapolis)
is President.

be determined

76,400 shares of com¬
Price—$1 per share. Proceeds—

Minneapolis Area Development Corp.
Feb. 19 filed $1,000,000 of 4% sinking fund income debentures due March 1,1972, and 25,000 shares of common
stock (par $1) to be offered in units of $40 of deben¬
tures and one share of stock. Price—$50 per unit. .Proeeeds—For acquisition of lands and for development of
the lands as sites for industrial purposes; for payment
of bank loans; and for working capital and other cor¬

Co.

Feb. 15 filed $6,000,000

Broadway, Den-

Mountain Mining & Milling Co.

Spokane, Wash.

New

(letter of notification)

stock

Electric

Boston,' Mass.

of common stock of ..the com-

jpany on the open market. Office—1700
..ver, Colo. Underwriter—None.
Mineral

Jackson

(letter of notification)

offered

for each Lynn share.

^ Midwest Oil Corp.
March

England Electric System
819,000 shares of common stock
in exchange for capital stock

filed

1%ice—126 N. Fifth St., (Box 988), Grand Junctions-Colo.
"

Under¬

Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of common stock (par $1),
of which 200,000 shares are to be offered to public and

Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Indefinitely postponed.

Underwriter—To be
determined by competitive bidding.. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
.Aug. 1, all for 43/4S, but were turned down. Reoffering is
.expected sometime during the first six months of 1957.

(par $1>.

.,4

Electric

wick

construction program;

"Underwriter—None.

stock

investments.

shares of beneficial interest in the Fund. Price—At mar¬

of)

advanced

Proceeds—For

market.

★ Putnam

$12,000,000 of 25-year sinking fund deben¬
1, 1982. Price—To be supplied by amend¬

Proceeds—To

—

March

tures due Jan.
ment.

common

Plymouth Bond & Share Corp., Miami, Fla.
Joseph A. Rayvis, also of Miami, is President.

ket.

Brunswick

Gas

Plymouth Fund, Inc., Miami, Fla.
Feb. 5 filed 500,000 shares of capital

Underwriter—None.
New

—

Standard

stockholders.

Rubber

Dec. 14 filed

Standard

None.

Shares, Inc., owner of
stock, will purchase
all shares of Pittsburgh Rys. to which it is entitled hr
subscribe, plus any unsubscribed share and the remain¬
ing 7,026.25 shares not offered directly to Standard Gas?

45.59%, of

Machinery Co.
Feb. 25 (letter of notification) 9,778 shares of common
stock (par $10) being offered for subscription by common stockholders of record March 7, 1957, on the basis
of one new share for each 20 shares held (with an over¬
subscription privilege); rights to expire on April 1, 1957.
Price—$27 per share. Proceeds—For general corporate
purposes.
Office—47 West Exchange St., Akron, Ohio.

it Mayfair Markets
(letter of notification) 5,000 shares of cumula¬

loans and for

National Old- Line Insurance Co.

drawn.

March 14

capital. Office—4383
Underwriter—None.

Pittsburgh Rys. Co., Pittsburgh, Pa. (4/3)
13 filed 547,678 shares of common stock (no par),
of which 540,651.75 shares are to be offered for subscrip¬
tion by Standard Gas & Electric Co. common stockhold¬
ers on the basis of one Pittsburgh Rys. share for each
four Standard Gas shares held as of April 2,. 1957. The
subscription period will expire on April 24. Price—$6
per share.
Proceeds—To Standard Gas & Electric Co.
Feb.

shares of class A common stock
(par $2) and 50,000 shares of class B common stock
(par $2)-. Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office — Little Rock., Ark.
Underwriter — Equitable/Securities Corp., Nashville.
Tenn., and New York, N. Y. Statement has been with¬

vestment.

of its

Nov. 15, 1955 filed 50,060

through

(4/10).

•

Fund, Inc., Washington, D. C.
Feb. 8 filed $1,000,000 oL8% note certificates.. Price—At

(in denominations of $250 each), Proceeds—For inUnderwriter — None. Offering to be made

New York

Mason Mortgage

par

National Lithium Corp.,

3,120,000 shares of common stock (par one
cent). Price—$1.25 per share. Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc., Under¬
writer—Gearhart & Otis, inc., New York.

Mass., and Thorn--

Ala. ;

March 11

5001 West Broad St.,

Feb. 19 filed

being offered for subscription by common stockholders
of record March 18, 1957 at the. rate of one new share for
each three shares held (with an oversubscription privi¬

ton, Mohr & Farish, Montgomery,

—

Richmond, Va.

lege); rights to expire on April 15. Price—$5 per share,
Proceeds—To increase capital and surplus. Underwriters

Office

—T. Coleman Andrews.

Logren Aircraft Co., Inc., Torrance, Calif.
(letter of notification)- 194,180 shares of com¬
mon, stock
(par $1). Price—$1.37 Va per share... Proceeds
7— For
working capital.
Office — 2475A So. Crensnaw

★ Peace River Petroleums Ltd.
(letter of notification) 200,000 shares of com¬
mon stock. Price—At par ($1 per share).
Proceeds—For
exploration of oil and gas. Office—850 W. Hastings SL»
Vancouver, B. C. Underwriter—None.

Proceeds—For investment. President

Price—At market.

March 5

Sept., 28 filed 230,000 shares of common stock

19 filed 50,000 shares of capital stock (par $1),
offered trustees of profit sharing retirement plans.

to be

and for working capital. Office
—Columbia, S. C.
Underwriter—Alester G. Furman
Co.,. Inc., Greenville, S. C.

cial building, equipment

Biyd., Torrance, Calif. Underwriter—Daniel Reeves
Co., Beverly Hills* Calif.

Corp., Salt Lake City, Utah
1,000,000 shares of common stock (par $1).
Price—$1.25 per share. Proceeds—For drilling test well#
and general corporate purposes.
Business—To develop
oil and gas properties. Underwriter—Market Securities,
Inc., Salt Lake City, Utah.
Feb. 4 filed

Investment Trust for Profit Sharing Inc., Richmond, Va.

it Mutual

Productions, Inc.

(letter of notification) 30,000 shares of common

Production

Paradox

processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.

equipment, working capital and other corporate
Underwriter—Steven Randall & Co., Inc., New

penses,

(1499)

The Commercial and Financial Chronicle

Number 5624

185

stock
—To

(letter of notification) 50,000 shares of common

(par 10 cents).
reduce

working capital.
N.

Price—$3.25

Underwriter—J.

per

share.

Proceeds

for purchase of inventory and for
Office—165 Clermont Ave., Brooklyn,

debt,

Emanuel

Co., Inc., Jersey

City, N. J.

writer—None.

Revlon, Inc., New York City

(4/2)

March 11 filed 241,020 shares of common stock

•

Nyvatex Oil Corp. (3/29)
Feb. 26 (letter of notification) 225,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—For
payment of note; and drilling and development of prop¬
erties. Office
Esperson Bldg., Houston, Tex. Under¬
writer—Milton D. Blauner & Co., Inc., New York, N. Y.

into which a like number of
of class B
be

common

(paf $1),

presently outstanding shares

stock will be converted.

Price—To

supplied by amendment. Proceeds—To certain setting
Underwriter—Reynolds & Co., New York.

stockholders.

—

Ohio Power Co.

Sept 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
writer—To, be determined by competitive bidding. Prob¬
able bidders: The First Boston Corp.; Blyth & Co., Inc.;
Kuhn Loeb & Co.;

Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley

and Salomon Bros. & Hutzler

Co., Inc. end Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected.,
&

Orefield

Mining. Corp., Montreal, Canada

shares of capital stock (par $1), of
shares are now outstanding. Price—To be
supplied by amendment. Proceeds — For exploration
costs.
Underwriter—To be named later.
Michael Tzo-

Oct. 15 filed 900,000
which 200,000

panakis, of Miami, Fla., and Denis Colivas, pf Montreal,
Canada, are large stockholders.
it Oregon Uranium Corp.
11 (letter of notification) 45,000 shares of common
($1 per share). Proceeds—For min¬

Feb.

stock. Price—At par

ing expenses.

Reynolds Metals Co.

Office—3809 N. E. 73rd St., Portland, Ore,

Underwriter—None.
Overnite

Transportation Co.

(4/10)

stock (par 50
cents). Price — $13.30 per share. Proceeds — To selling
stockholders. Office—Richmond, Va. Underwriter—Scott,
19

Horner &

filed 126,000 shares of common

Mason, Inc., Lynchburg, Va.

offered

for

of common stock (par $1)
subscription by common stockholders

of record April 2, 1957 on

the basis of one new share for

each 11 shares held; rights to expire on
Price — To be supplied by amendment.

April 16, 1957.
Proceeds—For
expansion program. Underwriters—Dillon, Read & Co.
Inc. and Reynolds & Co., Inc., Both of New York.
•

Roberts

Co., Sanford, N. C. (4/10-11)
shares of common stock (par $1), of
which 150,000 shares are to be sold for account of com¬
pany and 40,000 shares for setting stockholders. Prices—
To be supplied by amendment. Proceeds — To reduce
outstanding obligations and for working capital. Under¬
Feb. 28 filed 190,000

writer—Straus, Blosser & McDowell, Chicago, 111.
Rogosin Industries, Ltd., New York
1 filed 75,000 shares of common stock.

March

At par
ments

and

Price—

($100 per share). Proceeds—For site improve¬
buildings in Israel; for process equipment

and

machinery; for utilities; working capital; and other

corporate purposes.

Underwriter—None.

it Roxbury Carpet Co. (4/16-17)
March 27 filed 198,274 shares of common stock (par $1),
of

•

March

(4/2)

March 12 filed 914,078 shares

which

175,000 shares are to be offered publicly and

shares are to be offered in exchange for the
minority holdings of common stock in Roxbury Southern
23,274

Mills,

Inc.,

subsidiary. Price

—

To be supplied by

Continued

page

fl)

The Commercial and Financial Chronicle

(1500)

Proceeds

-amendment.

—For

Continued from page

—

For

U nderwriter—None.

modernization program.
& Curtis, Boston

Underwriter—Paine, Webber, Jackson

.Feb

Power Co.
shares of common stock (par So),

Electric &

Savannah

filed 163,334

!»eing offered for subscription by common stockholders
of record March 18, 1957 on the basis of one new share
for each six shares held

bank

loans.

v--,

> Sears Roebuck Acceptance Corp. (4/10)
26 filed $25,000,000 of subordinated debentures

March

suant thereto.

■

Public Service Co.

Underwriter
Philadelphia, Pa.

—

Bioren & Co.,

tive

stock

(par $1). Price—To be supplied by. amendment. Proceeds
—To equip a third super market and for
working capital
and other corporate purposes. Underwriter—R. S. Dickkson & Co., Inc., Charlotte, N. C.

if Stramit Corp.
March
~mon

•

25,000 shares of
Price—At par ($10 per share).

com-

Pro¬

ceeds—For
.

capital.

equipment, land, inventory and working
Office—120 Fourth Ave., Havre, Mont. Under¬

writer—None.
Stuart Hall

Co., Inc.
March 5 (letter of notification) 40,000 shares of common
stock (par $1).
Price—$6.75 per share. Proceeds—For
working capital. Office—121 W. 20th St., Kansas City,
Mo.
.

Underwriter—White & Co., St.
Louis, Mo.
if Thomasson Oil Producing Co.
March 14 (letter of notification) 500,000 shares of

mon

stock.

Price—At par (10 cents
per share).

com¬

one

new

share for each

five

April 16.
Proceeds—To be
on

filed

$900,000

sell
pay

251,606 shares of

reported company may offer to its com¬
some additional common
shares. Un¬

was

company's *
*

common

Power

Co.

(5/9)

announced

was

determined

Halsey,

competitive

(EDT)

a.m.

for April

Stuart

12.

Co.

May 9.

Registration—Planned

if Aluminum Specialty Co.
March 18 it
sell

announced company

was

15,000 shares

$1.20

are

vote

approving

preferred

and The Marshall

authorized

stock.

Stockholders

bank

offered

Penn Electric

Co., the parent, owner of 3,346,367 shares,
approximately 95%, of the outstanding West Penn
Power Co. common stock, has agreed to purchase all of
the shares not subscribed for by public stockholders.
or

Massachusetts

Electric

Co.

(4/2)

Bank & Trust Co.

(par $10)

at rate of

one

stockholders

its

share for each four shares

new

held March 20; rights to expire on April 8.

Proceeds

$12,000,000 of first mortgage bonds, series
C, due April 1, 1987. Proceeds—To repay bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp. and Lee
Higginson Corp.
(jointly);
Blyth & Co. Inc.; Blair & Co. Incorporated; Coffin &
Burr, Inc.; The First Boston Corp. and White, Weld &
Co. (jointly). Bids—Tentatively expected to be received
up to 11 a.m. (EST) on April 2 at Room 918, 201 Devon¬
shire St., Boston, Mass.
if Western

stack

(par

five

cents)

1,000,000 shares of
be

offered

200,000 shares to present stockholders
new

for

each

held

and

announced bank

was

one

Underwriter—None.

due

1976.
—

Sohwamm and

1950, will pur¬

unsubscribed shares.
it

Truck

Lines, Inc.

announced

was

holders. Price

—

mon

sale

$10 per share. Proceeds

corporate purposes.

—
For general
Business—A short haul motor com¬

carrier

operating over 3,000 miles or routes in Illi¬
nois, Indiana, Michigan and Ohio. Office—Grand Rapids,

Underwriter—Cruttenden, Podesta

Baltimore
Bids

Co.,

Chi¬

& Ohio

RR.

(4/15)

expected to be received by the company on or
about April 15 for the purchase from it of
$3,585,000
equipment trust certificates to be due annually in 1-to15

are

years.

Probable bidders: Halsey, Stuart & Co.

Inc.;

Salomon Bros. & Hutzler.
Boston Edison Co.
was

(6/5-13)

announced that company may

issue and

20-year sinking fund de¬
Price—To be supplied by amend¬

sell $25,000,000 of first mortgage bonds. Stockholders to

Proceeds—For

redeem

presently

outstanding

vote

first mortgage bonds, to Tepay

pansion

ders:

program.

Proceeds—For expansion

(4/29-5/3)
125,000 shares of
class A common stock (par $3) is planned the latter
part
of April or early in May. Of the total 50,000 shares will
be sold by company and 75,000 shares by
selling stock¬
March

•

$20,000,000

Proceeds

any

Associated

March 19 it

Wilson & Co., Inc.
bentures

Price—At par ($10 per share).

program. Underwriter—None. Harvey L.
his associates, who acquired control in

follows:

public. Price — To stockholders, seven cents per
share; to public, 10 cents per share. Proceeds—For min¬
ing expenses. Office—139 N. Virginia St., Reno, Nev.

28 filed

will offer to its stock-*

holders the right to subscribe for 50,000 additional shares
of capital stock on the basis of one new share for each
five shares held as of Jan. 21; rights expire on April 30.

cago, 111.

the

Aug.

$33

com¬

basis of

800,000

—

American Trust Co., New York

March 8 it

Mich.

Uranium Corp.

March 16 (letter of notification)

Price

To increase* capital and surplus
Underwriters—The First ^Boston Corp., New
—

York; and City Securities Corp., Indianapolis Bond &
Share Corp. and Collett & Co., all of Indianapolis, Ind.

chase

March 5 filed

Co.

the right to
100,000 additional shares of capital stock

for

accounts.

April 6

Co., both of Milwaukee, Wis.

share.

j^sue of 30,000

Underwriters—Emch

American Fletcher National
21

plans to issue and
convertible pre¬

cumulative

ferred stock series A (par $20).

Western

surviving
Corp.

First Mortgage

company plans to issue and
$14,500,000 first mortgage bonds. Proceeds—To re¬
bank loans and for new construction. Underwriter

March

(to

company

bidding. Probable
Inc.; Eastman Dillon,
Union Securities & Co., Equitable Securities Corp. and
Drexel & Co.
(jointly); Lehman Brothers; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly);
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly!;
Morgan Stanley & Co. Bids—Expected to be received

per

filed

—To

•

stoclf (no par)
being offered for subscription by .common stockholders
(other than the parent, West Penn Electric Co.) of record
March 23, 1957 on the basis of one new share for each
14 shares held; rights to expire on April 16, 1957. Price—
$49.50 per share. Proceeds — About $12,000,000—to be
used for construction program. Underwriter—None. West

ment.

Proceeds

com¬

Price—At par

2; rights to expire

this

Co.

Products, Inc., Emmaus, Pa.

bidders:

West Penn Power Co.

mon

(letter of notification)

capita] stock.

of April

reported

Jacobs

Alabama

on the basis of

shares held.

Mortgage Corp., Chicago, III.

derwriter—Reynolds & Co., New York.

Co., San Francisco, Calif.

jbe offered to stockholders

Detroit, Mich. Underwriter—.

—

stockholders

mon

Francisco,

participations in
Savings and Profit Sharing Pension Fund.

oversubscription privilege);

(4/22-26)

Air

Jan.

share for each two

Office

was

Feb. 26 it

filed

stock to
new

March

share for each three shares held

common

San

held;

Chicago) plans a public
offering of $1,000,000 class A 6% participating convert¬
ible stock (par $1).
Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Expected in April.

cumula¬

* Washington National. Insurance Co.

135,315 shares of common stock (par $1)
being" offered for subscription by common stockholders

100,000 shares of class A

Corp.,

Blyth & Co., Inc., New York.

filed

10,000 shares offered to employees of company. Price—
To be supplied «by amendment. Proceeds—For
working
capital and plant expansion. Underwriter—Kidder, Peabody & Co., New York.

—

Feb.

March 21 filed 200,000 shares of common stock (par $1),
«f which 190,000 shares are to be publicly offered and

and-Irwin

Price—To be supplied by amendment.
used initially to reduce bank borrowings. Underwriter—

(4/17)

retirement

Leasing

stockholders at the rate of

Spokane Natural Gas Co.

if Stevens Markets, Inc., Miami, F!a.

(4/11)

shares held

redemption of any unexchanged preferred stock.
Underwriter—Smart, Clowes & Oswald, Inc., Louisville,

Price—To

held; rights to
be supplied by

held; 120,000 shares

Co., New York.

Advance

Dec.

Corp. of America (4/2)
13 filed 178,646 shares of common stock (par
50 cents) to be offered for
subscription by common

for

if Standard Pressed Steel Co., Jenkintown, Pa.

stock

corporation following merger

Vitro

Proceeds—For gen¬

Underwriter—White, Weld & Co., New York.

about

March

pub¬

rights to expire on April 2. Price — $7.50 per share.
Proceeds — Together with bank loans, for construction

Proceeds—For

•

Proceeds—For expenses for operating
public utility (telephone and telegraph). Underwriter
—Daugherty, Butchart & Cole, Inc., Portland, Ore.

share for each two shares

one

common

Prospective Offerings

common

($10 per share).

corporate purposes, including* working capital and

class A share for each

one

class

1957.

16,

locations.

Allen &

the

March 25 filed

April

Cafiif.

one

•program.

and/or

States

mon

N. J.
$745,300 of 6% debentures due March 1.
1972 and 14,906 shares of common stock (par $1) being
offered in units of a $100 'debenture and two shares of

(with

class

if Valley Telephone Co., Silverton, Ore.
12 (letter of notification) 12J811 shares of

filed

new

store

(4/2)

March

■

one

Co.

stockholders of record

writer—Schwabacher &

Sperti Products, Inc., Hoboken,

the basis of

ACF-Wrigley

ers
of common stock subscription warrants of ACFWrigley, Price—$2 per share. Proceeds—To acquire, de¬
velop and operate warehouses, ■ - shopping centers and

800,000 shares of capital stock (par $1).
To be supplied by amendment. Proceeds — For
working capital and general corporate purposes. Under¬

and debentures at face amount.

of March 19, 1957

the basis Of

if United

Price

Prtfs—Class A and class B common stock, at
Proceeds—For in¬
ventory, furniture and fixtures and working capital.
Office—101 W. Broad St., Savannah, Ga.
Underwriter
—None.
v
"
"

class

March 22

.$1,000).

'at the rate of

•

the basis of 30 shares for each
$1,000 of debentures

in which latter company United
States Foil Co. and
Reynolds Corp. owns a 50.7% stock interest. Under¬
writers—Dillon, Read & Co. Inc. and Reynolds & Co.,
Inc., both of New York.

if Southern Toy & Hobby, Inc.
March 13 (letter of notification) 12,500 shares of class A
common stock (par $10), 750 shares of class B common
stock (par $100) and $50,000 6V2% 10-year junior sub¬
ordinate
debentures
(the latter in denominations of

Ky. Statement effective March 20.

909 shares

preferred stock and for subscription to proposed
stock offering to be made by Reynolds Metals Co.,

new

pensation of 8.956 cents per share.

unit.

Foil

746,270

common

amendment.

per

;

Wrigley Properties, Inc. (4/6-9)
March 6 filed 2,069,159 shares of common stock
(par $1)
to be offered for subscription
by security holders of
ACF-Wrigley Stores, Inc. on the following basis: 1,816,-

(par $1) to be offered for subscription by class A

seven

share. Underwriter—The First Boston Corp. was
awarded the issue on March 13, on its bid for a com¬

filed

April 2, 1957

per

Feb.

States

expire

Price—$100

•

bej offered for subscription by common stockholders

and class B

1,507,304 shares of common stock (par $5)
being offered for subscription by common stockholders
13, 1957 on the basis of one new share
for each 13 shares held; rights expire April 4, 1957. Price

licly offered.

unit/ Prof

Co., Inc., Washington, D. C.

stock

of record March

eral

stockholders;
per

57,250 shares to be offered holders of options to purchase
ACF-Wrigley common stock; and 75,000 shares to hold¬

United

Feb. 15 filed

debentures and 4,000 shares of common stock were

preferred

Price—$230

March

New York and

54,530 outstanding shares of 5% cfumblative con¬
vertible preferred stock (par $10) at the rate of one
unit for each 10 shares" of preferred stock held.
This
'offer expires on April 22. The remaining $200,000 of

Statement effective March 21.

April 10, 1957 on the basis of one new share
eight shares held. Price—$22 per share. Pro¬
ceeds—For payment of bank loans and construction program. Underwriter—None.

(par 10

which $545,300 of the debentures and 10,906
shares of stock are being offered first in exchange for

(first

April 5).

Park,
Fla.; First Florida Investors, Inc., Orlando, Fla., Bache &
Co., New York, N. Y.; and Grimm & Co., Orlando, Fla.

of.record

Co.

Southern

rights to expire

for each

Price—To be

poses.

preferred

one

ceeds—To repay bank loans and for expansion
program;
Underwriters — Security Associates, Inc., Winter

proprietary development.
Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &

(4/3)

92,500 shares of common stock

15 filed

4,000

$100)

^jj&r

if United Illuminating Co., New Haven, Conn. (4/11)
March 22 filed 311,557 shares of common stock (no par)

supplied by amendment. ProceedsTor investments in subsidiaries and other corporate pur¬

Inc.

common

and

ment

cents), to be offered for subscription by common stock¬
holders of record April 3, 1957, on the basis of one new
-ihare for each 10 shares held; rights to expire on April

stock,

(letter of notification) 100,000 shares of class A
stock* (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬

Southeastern

filed

and

Feb. 27

pany's Employees Savings Plan, together with 150,000
of common stock which may be purchased pur¬

.Jan.

1,615,500

Underwriter—None.

Park

Telephone Co.
40,000 shares of common stock (par $10)
shares of cumulative preferred stock (par
being offered in units of 10 common shares and

Feb.

common

•

and

Winter

if Sinclair Oil Corp., New York
March 22 filed $12,000,000 of participations in the com¬

par

Co.

Corp., both of New York.

Tripac Engineering Corp.

Proceeds—To purchase customer

—$20

filed

Weld

•

1, 1977.

due May

23.

White,

—

Wash.

couver,

stock and
1,126,508 common stock purchase warrants, of which
250,000 shares of stock and 250,000 warrants are to be
offered publicly in units of one common share and one
warrant. Price—$2.01 per uniL Proceeds—For construc¬
tion of plant and other facilities; for equipment; and
working capital. Office—Wallkill, N. Y. Underwriter—
M. S. Gerber, Inc., New York.

bank loans and for
construction program.
Underwriters—The First Boston
Corp. and Stone & Webster Securities Corp., both of

March

Underwriters

Transition Metals & Chemicals,

preferred stock, to be used to repay

Price—To be supplied by amendment.
receivables from Sears,
iloebuck & Co., the parent, under arrangements similar
4.0 those under which Sears has sold receivables to banks
*;ince 1937. Underwriters—Goldman, Sachs & Co., Halsey,
Stuart & Co. Inc. and Lehman Brothers, all of New York
City.
\:■ V/'l

Proceeds—For construction program and to repay

Jan.

private sale of 20,000 shares of $100 par

3New York.

ment.

Stone & Webster Securities

(with an oversubscription privi¬

lege); rights to expire on April 1, 1957, Price
$18 per
nhare. Proceeds—From sale of 163,334 shares of common
stock and from

if Wind River Mining Co.
(letter of notification) 1,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Office—205 E. 12th St., Van¬

(par $100). Price—To be supplied by amend¬

ferred stock

Offering-—

March 12

if Transcontinental Gas Pipe Line Corp. (4/16)
March 27 filed $50,000,000 of first mortgage pipe line
bonds due 1977 and 100,000 shares of cumulative pre¬

New York.

and

Thursday, March 28,1957

and Hallgarten & Co., all of New York City.
Indefinitely postponed.

drilling and. completion of wells on the company's
Offtte — 413 California Bldg., ^Denver, Colo.

leases.

...

bank loans and for ex¬
Business—Meat packing firm.
Un¬

derwriters—Smith, Barney & Co.; Glore Forgan & Co.

April

approving

construction

proposed

program.

new

financing.

Underwriter—To

determined

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.;yThe First Boston Corp.;

Lehman

Brothers; Harriman Ripley & Co. Inc.; White,

Volume

185

Number

Weld & Co.

5624

The Commercial and Financial
Chronicle

Bids—Expected in first

second week

Consolidated Natural Gas Co.
Feb. 11 it

Feb.

vote

(A.

M.)

Co.
stockholders

class

new

cumulative preference stock

Underwriter

General

Tire

Dillon,

Read

increas¬

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Paine, Webber, Jackson and
Curtis (jointly); Morgan,
Stanley & Co. and the First
Boston Corp. (jointly). Bids—To be received
up to 11:30

and

Rubber

Co.

1956.

a.m.

Co.
.m

financing.

Carolina

March

Mason,

sell

announced company

was

Inc.,

Central

Hudson Gas

announced

was

plans

company

sell

that corporation intends

announced

was

stockholders

the right

subscribe for

Corp.

was announced that the
company plans, before
the middle of the year, to issue
approximately $12,000,000 of new securities (two-thirds in debt securities and

Feb.

common stock).
Proceeds—For
Underwriter—For any debt securities, Kidder, Peabody & Co.; for common stock, Kidder,
Peabody & Co. and Estabrook & Co., both of New York.

•

sell

this

reported

was

Fall

between

mortgage bonds.

$18,000,000

$20,000,000 first
bank loans and for
be

determined

by
Stuart

competitive

bidding. Probable bidders: Halsey,
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.;
.Eastman Dillon, Union Securities & Co.; The First Bos¬
ton Corp.; Harriman Ripley & Co.
Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).
&

sell

Co.

Chicago, Milwaukee, St. Paul & Pacific RR.

Co.

certificates.

Inc.;

Probable

Salomon Bros.

bidders:

Feb. 20 it

writers

Co.

certificates.

%■

the basis of

Proceeds

—

reduce

Dealer-Manager—

Feb.
sell

Probable

bidders:

18 it was reported company plans to issue and
$25,000,000 to $30,000,000 of first mortgage .bonds.
Underwriter—To be determined by competitive bidding.

•

Probable

bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Urnon Securities & Co., and White, Weld & Co.
(jointly); Blyth & Co., Inc.', and The First Boston Corp.
(jointly); Morgan Stanley & Co. and W. E. Hutton & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Lehman Brothers (jointly).
Bids^-Tentative scheduled
for May 7.

announced

•

Cleveland
•

Nov. 12 it
1957.

Co.

2-1

Illuminating Co.

Power Co.

the

Glore,

Forgan

for construc¬

Co.;

for

reported

was

the

average

share.)

Pro¬

ceeds—Together with funds from private sale of $40,000,(>00, for construction program.
Underwriters—Lehman
Brothers and Allen & Co., both of New York.
Columbia

18,
sale

its

Gas

company

System,

announced

additional

that it

debentures

plans the issuance

order

1957 construction program, which is
expected

finance
to cost

approximately $87,000,000, which will also be financed,
in part, through the
offering of 1,675,415 shares of com¬
mon

stock

stockholders

(see above).
Underwriter—
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
& Co. (jointly).
To be determined

Connecticut

Fel>

18, it

was

sell

not less

lhaq^$20,000,000 of first mortgage bonds, possibly this
-

Fall, depending
construction
Hartford.

(jointly);

Dillon,

Equitable

Union

upon

market conditions.

program.

Conn.;
Haven, Conn.

and

Underwriter

Chas.

—

Proceeds—For
Putnam

Scranton

Co.,

Co.,
New

Light Co.

of a

new

stock

(par $100).
New York.

Co.,

will

April

of 50,000Underwriter —

Lake

future to sell

near

vote

issue

company

plans'

issue of convertible deben-

expansion

program.

(EDT)

a.m.

1967.

Industries

that it is

was

Ltd.

$2,000,000 of first mortgage

interest

rate

ing

done privately.

was

not

exceed

6%.

to offer

Union

Securities

Co.

and

Salomon

bond

Texas
was

Gas

reported

Oil

that

Bros.

late

this

Hutzler

Co.,

Inc.

units.

ent

Part of

stockholders

common

struction program.

$10

stock will

per

share.

Illinois

Feb.

stock

common

be offered

pres¬

Proceeds—For

con¬

Underwriter—Blyth & Co., Inc., San

Laclede

March

directors

approved, subject to stockholder
approval, an increase in the authorized serial preferred
stock (par $50) from 1,000,000 shares to 1,600,000 shares.
Underwriters—Merrill
and

The

First

Boston

Lynch,

Pierce,

Fenner

Corp., both of New Y'ork.

(latter han¬

Beane

Co.

Gas

was

(5/1)

announced the company is planning an

$10,000,000 first mortgage bonds due 1982. Pr»bank loans (expected to be around $6,-

ceeds—To repay

800,000) and for construction purposes. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey,

Stuart & Co.
Securities

Webster

Inc.; Blyth & Co., Inc.; Stone &
Lehman Brothers,
Merrill

Corp.;

Lynch, Pierce, Fenner & Beane and Reinholdt & Gard¬
ner
(jointly); The First Boston Corp. Bids—Planned to
be received on May 1. Registration—Expected on April 4.
Lincoln Telephone

18 it

its

was

common

stock

for each

Witter & Co.,
ed

& Telegraph Co.

reported company plans in April to offer
stockholders 68,750 additional shares of
(par

$16.66%)

three shares held.

the basis of one new
Underwriter — Dean

San F/rancisco, Calif. Registration—Expect¬

late in March.
Lone

Jan.

Poyyer Co.

the

reported company plans offering in the

was

dling books), both of New York.

Feb.

plans to offer
notes (convertible

company

reported registration is expected in near

was

Barney & Co. and The First Boston Corp.,

Corp.

publicly $22,405,556 of 5V2% interim
into preferred stock) and $18,241,944

York.

Corp.

financ-

Houston
March

by the Henry U
Underwriter—The*

Royal Dutch Airlines

* KLM

issue of

offer

Blyth

owned

other assets.

selling stockholders. Underwriters—-The First Boston.
Corp., New ^ork; Dean Witter & Co., San Francisco.
Calif.; and Carl M. Loeb, Rhoades & Co., New York.

•

(jointly); Lazard Freres & Co. and
(jointly); Kidder, Peabody & Co.

companies

United States of its common stock. Underwriters—Smith,

Halsey, Stuart & Co. Inc.; Equitable
Lehman Brothers,' Eastman Dillon,

Corp.;

portion of the funds

750,000 shares of common stock (par $4).
Price—To be supplied by amendment.
Proceeds — To

Fall approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc. has not yet been determined.
Underwriter—To be determined by competitive bidding.
bidders:

future

Probable

the

Industries

March 13 it

June 6.
,

bonds, series

Houston Lighting & Power Co.
Feb. 13 it was reported company may

anticipated that

Co.,

Kaiser

plans to issue and

Co.

(Hawaii)

announced company

;

to meet the $25,000,000 installment due April

or of certain
First Boston Corp., New

.Underwriters—Johnston, Lemon & Co.,

Electric Light Co.,

Corp.

E. E. Trefetheri, Jr., Executive Vice-President,,

1, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬

Kaiser

Securities

Francisco and New York.

Light & Power Co.
reported company plans to

Underwriter—For

announced stockholders

preferred

securities

stockholders about June 3 the right to subscribe

Securities

Inc.

was

March 18 it

sell

per

issue an#
securities.

new

ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the:

approximately $500,000 of convertible capital deben¬

Hilo

company

price of*$10

off

Sulphur Co.
:
Eugene H. Walte, Jr., announced

Nov. 28,

Washington, D. C.

March

stockholders at

and

Co.

Eastman

and

tures due

White,

plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units. (Common stock not
sold in units
would be purchased by
Delhi-Taylor Oil Corp., or its

Feb.

Shields

common

Transmission Corp.

necessary

company

Government Employees Corp. (6/3)
March 12 it was announced company plans

Co.

Coastal
March

(jointly);

Kaiser

(6/6)

announced

was

expected to be received up to 11

reported company plans to issue and sell
of first mortgage bonds in the Summer of

Co.

$11,000,000

rities &

(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively

Inc.; The First Boston Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
Weld

and

Corp.

Underwriter—To be determined by com¬
bidding.
Probable bidders:
Halsey, Stuart &

plans

& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
Co., Salomon Bros. & Hutzler and Merrill Lyncb,,
Pierce, Fenner & Beane (jointly). ; Bids — Expected in
June or July, 1957.
;
;
:
*"

plans to issue and

company

planning is¬
suance and sale of
$15,500,000 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.; Morgan
Stanley & Co.; Blyth & Co., Inc., Kidder, Peabody &

Co.

liams

Co.

company

Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds due 1987 (later
changed to $15,000,000). Underwriter—To be determined!
by competitive bidding. Probable bidders: Halsey, Stuart

stated

Georgia
Jan.

program.

petitive

Offering—Probably in May.

Electric

about

Proceeds—For

tures.

1957 and due

Proceeds—To repay bank loans and

approving the creation

in the
-

was

$25,000,000
tion

Electric

by competitive bidding.
Halsey, Stuart & Co. Inc.;

Bids will be received by the
company up to noon (EST)
April 16 for the purchase from it of $4,200,000 of

1957

Power

Dec. 27,

Paine, Webber, Jackson & Curtis and Stone & Webster
Securities Corp., both of New York; and Mitchum, Jones
& Templeton of Los Angeles, Calif.
*

certificates dated Feb.

Under¬

determined

reported

was

Jefferson

—

semi-annually frort)i Aug. 1, 1957 to and including Feb.
1, 1967.
Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler; Baxter & Co.

Smith, Barney

probably in June, first to common stockholders,
$45,000,000 of convertible debentures^Underwriters •fc—

equipment trust

Telephone Corp.
was

May 21,
additional capital stock, following pro¬
of the present outstanding shares on a

Power Co.

—

Iowa

sell,

Cincinnati, New Orleans & Texas Pacific Ry.
(4/16)

General

March 18 it

Corp. (5/21)
plans to offer its,
1957, approximately

was

later

March

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Merrill Lynch, Pierce, Fenner &
Beane and Kidder, Peabody & Co.
(jointly); The First
Boston Corp.; Blyth & Co., Inc. and Lehman Brothers
(jointly). Bids—Expected to be received on May 21.

(5/7)

of
up

Machines
company

record

preferred stock, to be determined by competitive
bidding. Probable bidders: Merrill Lynch, Pierce, Penner
& Beane and White, Weld & Co. (jointly); Salo¬
mon Bros.
Hutzler; Harriman Ripley & Co. Inc.; Glore,.
f organ & Co.; Blyth & Co., Inc.; Lehman Brothers.

(5/21)

4 it was reported company
plans to issue and
$15,000,000 of first mortgage bonds due 1987. Pro¬
ceeds—To repay bank loans and for Construction
pro¬
gram.
Underwriter—To be determined by competitive

Halsey, Stuart &

Inc.; Salomon Bros. & Hutzler.

any

(5/15)

Light Co.

Underwriter—$Iay

Proceeds—For construction program.

bidders: Halsey, Stuart
Co. Inc.; Merrill
Lynch, Pierce, Fenner & Bearie; Stone & Webster Se¬
curities Corp.: Equitable Securities
Corp.; Kidder, Pea¬
body & Co., Shields & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on May 15.
&

Iowa-Illinois Gas

repay

Power

announced

was

Inc.; Smith, Barney & Co.

(probably with

March

•

sell

1957 the

reported company plans to issue and
$6,500,000 of first mortgage bonds. Proceeds
bank loans and for construction program.

about

construction.

body^ & Co. (jointly); White, Weld & Co;, and R.
i.Pressprich & Co. (jointly); Salomon Bros; & Hutzler;
Smith, Barney & Co. For stock: if competitive, Blyth &.
Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Harriman Ripley & Co.

was

Florida

Halsey, Stuart &

Hutzler.

Cincinnati Gas & Electric Co.

Co.

its

Corp., New York, acted
stock offering last year.

common

Electric

offer

May 7,

held

construction.

new

1960, amounting
Proceeds—To repaj^ bank

Probable bidders: For bonds:

2JL for 119,522 addi¬

(par $5)

Securities

Additional secti-

1959 and

reported company plans to sell about $28,800,000 of new securities ($19,800,000 of first mortgage
bonds and about $9,000,000 of common stock).
Under¬

Underwriter—To be determined by competitive bidding.

Chicago, Rock Island & Pacific Ry. (5/14)
Bids are expected to be received
by this company on
May 14 for the purchase from it of $3,000,000 equipment
trust

stock
15

sold in

new

Interstate

about

Probable

Bids

trust

—To

(5/1)

are
expected to be received by this company on
May 1 for the purchase from it of $6,000,000 equipment

Paso

Feb.

plans to

about

privilege).

dealer-manager for

Proceeds—To repay
Underwriters—To

Webster

record

ft.

Merrill Lynch, Pierce, Fenner & Beane and Kidder, Pea¬

before May

each

oversubscription

Stone

issue and

of
or

make

basis.
Proceeds—For working capital.
writer—Morgan Stanley & Co., New York.

conditions

2-for-l

(5/7)
company

common

share for

new

bank loans and for

plans

company

construction.

new

stockholders

right to subscribe
one

Co.

reported

was

tional shares of

ir Central Illinois Light Co.
March

Electric

common

the balance from sale of
construction program.

Paso

$200,600,000
posed split

writers—Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades
Co., both of New York.,

for

and

stockholders

Feb. 1 it

Feb.

300,000 shares of common stock on the basis- of one new
share fo reach three shares held. Proceeds—To
help pay
for cost of acquisition of radio station WNEW.
Under¬
&

market

International Business

$89,000,000,

Mont Broadcasting Corp.
its

approximately $14,000,000.

securities. Proceeds'—For

new

1957

Lehman Brothers, Goldman, Sachs & Co. and The First
Boston Corp., who underwrote last equity financing.

competitive

offer

Electric

loans

$60,000,000 of

March 20 it

permit

approxi¬
financing was

debenture

rities will need to

bidding.
Probable bidders: The First
Corp. and Halsey, Stuart & Co. Inc. (jointly);
Coffin & Burr, Inc., and Spencer Trask & Co.
(jointly).

plans to issue and

debentures in ah amount which would
substantial reduction of its bank loans (which

$12,200,000).
Previous
done privately.;
^

bank

porary

issue of $8,000,000 in bonds in 1958. Tem¬
loans are available and probably will be

utilized, during at least p^rt of 1957.

Boston

★ Du

some

mate

time

some

feasible, and

bonds, to be determined

★ Carolina Telephone & Telegraph Co.
March 11 it

stock

June 11.

construction program (estimated to cost about
this year).
Underwriter—For

March 11 it was reported company
plans to construct a
pipe line in South Carolina at an estimated cost of about

1957 about

Pipe Line Co.

Horner

ent

it Detroit Edison Co.

....

$8,700,000. Underwriter—Scott,
Lynchburg, Va.

(EDT)

Power & Light Co.
H. T. Prichard, President, announced that pres¬
plans contemplate an issue of $6,000,000 of preferred

Nov. 21,

—

& Co., Inc., New York,
handled previous preferred stock financing, while Kid¬
der^ Peabody & Co. underwrote General. Tire & Rubber
—

Indianapolis

this year, viz.: $25,000,000 in June and
$25,000,000 in the
Fall.
Underwriter
To be determined by competitive

ing the authorized outstanding indebtedness to $15,000,000, ' in connection with its proposed recapitalization
plan. There are no specific objectives involved. Control
—Acquired

(6/11)

announced company plans to issue and sell
if
$50,000,000
25-year
debentures

amount

May 7 will
shares of

100,000

(par $100)

was

total

announced

was

authorizing

June.

Byers

(1501)

Star Gas
it

was

sell $30,000,000
loans

and

First

Boston

expected

for

Co.

announced

company

plans to

issue and

of debentures. Proceeds—To repay bank
construction program. Underwriter—The

Corp.,

New

York.

Offering—Tentatively

late in April.

Continued

page

The Commercial and Financial Chronicle

(1502)

Continued from page

To repay

derwriter

equipment trust certificates.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Halsey,

Metropolitan Edison Co.
was reported that company is now considering
the
sale
of
$19,000,000 first mortgage bonds
due
1987.
Underwriter
To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co; and Drexel & Co. (jointly); The First Boston
Corp; Bids—Not expected to be received until sometime
in April or May, 1957.
Jan* 29 it

—

Michigan Consolidated Gas Co.
it

;

; /• **. •

reported company plans to issue and
$25,000,000 and $30,000,000 of first mort¬
gage bonds before Summer.
Proceeds—To repay bank
loans and for construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders. Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Blyth & Co., Inc. (jointly); White, Weld & Co. and
Lehman Brothers (jointly).
sell

was

between

Minneapolis & St. Louis Ry.

(4/23)

Bids will be received by the company up to noon

(CST)

April 23-for the purchase from it of $2,700,000 equip¬
trust certificates, series«A dated May 10, 1957,
to mature annually in l-to-15 years. Probable bidders:
Halsey, Stuart & Co. Inc;; Salomon Bros. & Hutzler.
ment

Northern Ontario Natural Gas Co., Ltd.
March 1 it was reported company

14 it

determined by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly); Blair & Co., Incorporated.
National Fuel Gas Co.®(5/28)

Jan. 10 it
000 of

reported company plans to issue $15,000,25-year debentures. Proceeds—To make addi¬

was

new

tional investments in securities of subsidiaries.
writer

determined

Under¬

competitive bidding.
Co. Inc.; The First
Bostop Corp.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
I
(EST) on May 28. Registration—Planned for April 18.
—

Probable bidders: Halsey, Stuart &

Power Co.

Canada.

Proceeds—About

Public Service Co. of Colorado

(5/20)

plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds^To repay

Oct. 8 it was reported company
of

bank loans and for new construction,

Underwriter—To

by competitive bidding. Probable bidders:

be determined

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
♦White, Weld & Co. (jointly); The First Boston Corpi;
Blyth & Co., Inc. and Smith, Barneyr& Co. (jointly);
Lehman Brothers; Harriman Ripley &- Co. Inc. Bids-

(Minn.)

Expected to be received up to noon (EDT)-on May 20.
Public Service Co. of Indiana; Inc.

be determined

by competitive bidding. Probable bidders:
halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner

Feb. 11 it

announced that it is expected that a new

was

initially
sold by the confr-

and

series of first mortgage bonds /about $30,000,000

Co.

scheduled for 1956) will be issued and

Beane, Kidder, Peabody & Co. and White, Weld &
(jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.;
Harriman Ripley & Co. Inc.
:;/y
Northern

March

States

Power

Co.

(Wis.)

construction.

•petitive bidding. Probable bidders: Halsey, Stuart & Co.

(6/4)

plans to issue and
sell $10,000,000 of first mortgage bonds due 1987. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynbh, Pierce, Fenner
& Beane; Lehman Brothers and Riter & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly). BidsExpected to be received on June 4.
;

.Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhii, Loeb
& Co.,. Salomon Bros. & Hutzler and Eastman Dillon,
Union Securities & Co. (jointly).

was

Bell Telephone Co.

later

mortgage bonds (company is authorized to issue
$25,000,000 additional principal amount). Proceeds—To
retire bank loans. Underwriter—May be determined" by

rfirst

(4/23)'

competitive bidding. Probable bidders:
Co. Inc.; The First Boston Corp.

announced company intends to issue and

sell $30,000,000 otf 32-year debentures due May 1, 1989.
Proceeds—To retire short-term loans and for construc¬

tion program.

Underwriter—To be determined by com¬
probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; The First Boston Corp.;
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received around April 23.
;
petitive

Pacific

Telephone & Telegraph Co.
~
James S. Cantlen, Vice-President, announced
plans to spent $159,ri00,000 in 1957 and
$157,000,000 in 1958 for expansion and improvement to
be financed in part, by debt borrowings and stock issues.
14,

that

company

reported registration is expected* ih
month of about 213,000 shares of common stock,
it

about

Halsey, Stuart
■"'=

't'-'-.'Y'f

it Radiation, Inc.
"March

biddings

Jan.

Puget Sound Power & Light Co.
^ >
6, Frank McLaughlin, President,; announced that
on in
1957 the company plans to sell an issue of

-Teb.

Feb. 23 it

during 1957.: Proceeds— To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new
Underwriter—To fee determined by comw

pany,
;

reported company

was

Northwestern

reported company plans to issue and
Sell $10,000,000 of first mortgage bonds or convertible
debentures before June 30, 1957.
Underwriter—To be
was

March 4 it was reported company plans to issue and
sell in tne Fall of 1957 $15,000,000 first mortgage bonds.
Proceeds—For construction program.
Underwriter—To

Montana-Dakota Utilities Co.

March
'

expansion and working capital.
Operates shopping centers. Underwriter .
Eastman Dillon, Union Securities & Co., New York, for
about two-thirds of issue.
Balance to be underwritten
Business—

$10,500,000, together with private financing, to be used
for new construction.
Underwriters — Hemphill, Noyes
&
Co. and Bear, Stearns & Co., both of New York,
to head group in United States.
Offering—Expected in
April.. ■
Northern States

Thursday, March 28,1957

plans to issue and sell

notes and common stock in units.

some

Proceeds—For

stock.

Un¬
San

—

Francisco.

Louisville & Nashville RR.

Bids ire expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000

March

bank loans ($18,750,009 at Dec. 31, 1956).
Blyth & Co., Inc., New4 York and

of which

was

approximately 183,000 shares are to be offered

the company late in May to its stockholders on a
30,000 shares are to be sold for
'account of certain stockholders. Underwriters — Kuhn,
by

l-for-3 .basis and about

Co., New York, and Johnson, Lane, Space & Co.,
Savannah, Ga.
* * '■ V
;
^

Loeb &

•

■

Reading Co.

Hids

About 90% of Pacific's stock is owned by

American Tele¬
Underwriter—For any bonds, to

(5/23)

"J.

expected to be received

are

■

by this company on

May 23 for the purchase from it of $2,475,000 equipment
certificates, due t semi-annually, from July 1, 1957,
to Jan.
1, 1972, inclusive.
Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bi*os. & Hutzler. '

phone & Telegraph Co.
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

trust

be determined

National Telefilm

March 4
to
•

was

Associates,

announced

company

$8,000,000 convertible notes

future.

Proceeds—For

Peninsular Telephone Co.

Inc.
plans to issue

debentures in the

reduction

short-term

near

debt,

Working capital and other corporate purposes. Under¬
writer—May be Charles Plohn & Co., New York.
New England Electric System

Jan. 3, 1956, it was announced company plans to
merge
subsidiaries, Essex County Electric Co., Lowell Elec¬

tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one

company.

This would be followed by a $20,000,000 first mortgage
bond issue by the resultant company, to be known as
Marrimack-Essex Electric Co.
Underwriter—May be

by competitive bidding.

Probable

Halsey, Stuart & Co. Inc.; Kuhn, Loeb

bidders:

Company;
Hutzler,
Eastman
Dillon, Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.;
Equitably
Securities Cprp,; Merrill Lynch, Piei.ce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Salomon

Bros.

determined

by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers and Salomon Bros. & Hutzler
(jointly);
Eastman Dillon, Union Securities & Co, and

Co,

White, Weld
(jointly): Equitable Securities Corp.; The First

Boston Corp.; Merrill Lynch.
♦

was

(5/14)

announced company

$25,000,000 of first mortgage
.

Pierce. Fenper & Beane.

New York State Electric & Gas
Corp.

Oct. 24 it

plans to sell in 1957
bonds, and an additional

$20,000,000 in

1958. Proceeds—To finance construction
program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and Smith,
Barney & Co. (jointly): The First Boston Corp. and
Glore, Forgan & Co. (jointly); Harriman Ripley & Co.
Inc.; Kidder, Peabody & Co. and, Salomon Bros. &
Hutzler (jointly). Bids—Expected May 14.
New York Telephone Co.

(5/21)

was announced
company plans to issue arid
sell $70,000,000 of refunding mortgage bonds. Proceeds
—To retire short-term borrowings. Underwriter—To be

determined by competitive

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids
—Scheduled to be received on May 21.
Norfolk A Western Ry.

(4/10)

expected to be received by this company on
.♦April 10 for the purchase from it of $6,600,000 equipment
trust Certificates.
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.
are

Northern Natural Gas Co.
March 6 it

was

debentures and

announced company

plans to issue some
preferred, stock this year.
Proceeds—

pected to be received until next Fall.
Southern Bell Telephone &
Feb.

•

was

common

stock to its stockholders about

the middle of the year on a basis of one new share for
each 20 shares held. Proceeds — For construction pro¬

Dealer-Managers

—

Drexel & Co., Philadelphia,

Proceeds—For expansion program. Under¬

Co.; The First Boston Corp.; Morgan Stanley & Co; and
(jointly).

Drexel & Co.

(6/10)

reported company plans offering to com¬
stockholders of about 112,988 shares of additional

mon

common

stock about June 10

writing—May be

on a

l-for-5

jDasis. Under¬

negotiated basis.

Ar Portland General Electric Co.
March 13 it
sell

was

announce^ company plans to issue and
sha^es^fy&ommon stock in April or Mav.t

300,000

Underwriter-

Co., Inc., San Francisco and New

was

announced

company

may

1957

issue

Principal Retail Plazas of Canada, Ltd.
Feb.

pected of
tures

due

common

stock, to:

are

(3/28)

expected to be received by the company up to

(EST)

Machine Tool Co.

Sundstrand
March

11 it

was

reported

company may

do some equity

financing in April (first to stockholders). Underwriters:—
Merrill Lynch, Pierce, Fenner & Beane and Dean Witter
&

Co.

Tampa
March

Electric Co.
it

was

reported company plans to issue and

sell about

$18,000,000 of first mortgage bonds. Proceeds
—To repay bank loans and for.new construction. Un-

1,500,000 ehares

Spokane, Portland & Seattle Ry.

•

reported that early registration is ex¬
issue of $15,000,000 of subordinated deben¬

1982-and

& Co. (jointly). Offering—Expected in August

on March 28 for the pulchase from it of
$3,690,000 of equipment trust certificates. Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

was

announced company plans to

ders:

(Canada)

be sold in units of $50 of debentures and five shares of

was

September, 1957.

noon

—

Inc.; White, Weld & Co.; Equitable Securities
Corp.; Kulfn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody &Co.; W. C. Langley & Co. and The First Boston Corp. (jointly). Offer¬
ing—Expected in May.

Securities
or

$14,000,000 to $15,000,000 of senior securities. Pro¬
ceeds
To repay bank loans and for construction pro¬
gram. Underwriter—For-any bonds to be determined by
competitive bidding. Probable bidders: Halsey, Stuart
Co.

California Gas Co.

issue and
first mortgage bonds. ^Proceeds
7 —To
repay bank loans and for new construction. Un¬
derwriter—To be determined by competitive biddings
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
-Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co; and Eastman Dillon, Union

some

the

-sell about $35,000,000 of

Bids

Southern

•

stock.

addition

Jan.

York.

Dec.

Quinton,

addedwthat the company will require
in 1957 and 1958,
$37,500,000 bond issue of February,
1957. (A total of $70,000,000 may be raised irt 1957.)
Underwriters—(1) For any bonds, to be determined by
competitive bidding. Probable bidders may include: HalSey, Stuart & Co. Inc.; 31yth & Co. Inc.; The First Boston
Corp. and Dean Witter & Go. (jointly); Kuhn, Loeb &
Co. (2) For anv preferred stock: May be The First Bos¬
ton Corp. and Dean Witter &.Co. (jointly).
in

Gas & Coke Co.

.Registration—Planned for

than $180,000,000 of new money

was

Harold

20.

ferred

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Portland

18.

President, announced that
for the balance of this year the company's present iq•i tention is to issue additional, bonds and probably a pre¬

14 it was also announced company plans to issue
and sell in the second half of 1957 additional first mort¬

•

June

it Southern California Edison Co. /;

Feb.

March 21

$70;—

part of Mpy.

! March

Philadelphia Electric Co.

gage bonds.

received

latter

announced company plans to Offer about

600,000 shares of

directors authorized the Issue and sale of

Proceeds
—For construction program. Underwriter—To fc# deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expected

Philadelphia Electric Co.
Feb; 14 it

Telegraph Co* (6/ $$)

000,000 of 29-year debentures due June X; 1986.

•

Potomac Edison Co.

March 18 it

Bids

Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers (jointly); Kidder, Peabody & Cq.;
Eastman Dillon, Upion .Securities & Co. Bids—Not ex¬

sell

gram.

Sept 12 it was announced company plans to issue and
•elL $5,000,000 of first mortgage bonds.
Underwriter—

Pennsylvania Electric Co.
Sept. 12 it was announced company plans to issue and
$6,000,000 of first mortgage bonds. Underwriter—
To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union .Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.;
jjarriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.

plans to issue and sell.,

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:

Proceeds—Together with funds from
Under¬
writers—Morgan Stanley & Co. and Coggeshall & Hicks,
both of New York City.

proposed bond sale, to finance new construction.

Pa., and Morgan Stanley & Co., New York, N. Y.

N«w Jaraay Power & Light Co.

Jan. 14 it was reported company

stock.

of common

Offering—Expected in first half of 1957.

was

fts

determined

common

South Carolina Electric & Gas Co.

announced company plans to offer to its
stockholders not over 189,844 additional shares

March 6 it

;

derwriter—To

Probable bidders:

determined by competitive bidding.
Halsey, Stuart & Co.- Inc.; Goldman^

Volume 185

Number 5624

The Commercial and Financial Chronicle

63*

(1503)

*•

Sachs

Co.; Stone & Webster Securities Corp.; Kuhn,
and A. C. Allyn & Co. Inc.
(jointly); Mer¬
Lynch, Pierce, Fenner & Beane. Bids—Expected to

Loeb
rill

received

Tampa
March

time

some

Electric

sell about

1957

plans to

company

217,000 additional shares of

Texas

Electric

Service

announced

was

sell

First Boston Corp. and Blyth & Co., Inc.
Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co, (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively

new;

determined

by competitive bidding." Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill LynchrPierce, Fenner & Beane
(jointly);.Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First

Utah

locally

•

March

reported- company plans to issue and sell

Trailer
it

Ferry,

Ira

Co.,

Adviser—Salomon Bros. &

New York.

June 4.

Hutzler, New York.

Feb.

Fund, Ltd.

5 nnn n<v)

sale

ormitpi

Co.

Loeb

stock,

Co.

American

Corp,

sell in

ders:

rities .&-Go.-;
Weld

was

Dental Manufacturing Co.

reported company is considering, some?.

long-t€frm financing.

friends

that

and

she

who

had

her

few

friend

under

names

two

most

The

favorable

Keep

established/Vrocedures

to pros¬

pecting. They consist of a simple
plan of reading, seeing, and listeriing!

The

fhd

listed

other

liames

uals who had
000

or.

community.

my.

make news.

money

For example,

there is the daily
other day I noticed

The

paper.

Keep

column

offering
an
expensive
yacht for sale. The owner's raire'given.

was

almost

back

membered

who

name

was

one

iest

individuals

The

name

than

same

went

evening

looking

Christmas display

re¬

same

another

cily.
and

unusual

likely could be ihe

customer

firm

another

in that area.

told

had

Not

had

only

was

out to be very
tax

just

bought

$400,000

state.

ously thinking about a change of
domicile, and the addition of some
bonds to his investment porLolio
that
were
representative of the
where

formation

his

which

live.
the

offered

tax

existing

in¬

certain

tax

making.

advantages,

Don't write and ask

if I've made a commission sell¬

ing his yacht too—but it's an idea.
So

him

sent

newspaper

men¬

the first prize and

with
was

call.

erty

with

day

client and

trip

The

destination

was

luncheon

this

about

arrived at the

had luncheon at

inviting 1 restaurant.
some

trip to look at some prop¬
she had been thinking of

miles and when

client

During
told

ail

names

of charitable

ganizations, estates, hospital

paigns,

and

or¬

cam¬

the donors to char¬

it,"
told

erated

said^: and "with
that

jhe

woman

this restaurant

that

—

the

staff

Richard

she

one

£.30% yield

reofferirig the price
paid by the company was not ex¬
orbitant

the

Thai?, is excluding

less artificial

the last 20 years or so.

ease

offering

segment of the investing fraternity
but
rather embraced ihe entire
field.
able

sponsoring group was
quick oversub¬

The
to

announce

for

stage

appeared

have

with

start,

successful

deal

been, set from
two
competing

ing

An¬

A. Harri¬

its

The

size.

latter

Inc., 2200 16th Street.

He was

formerly with Kidder, Peabody &
Co.

Walston Adds to Staff

underwriting capital, naturally

limited the bidding field.

(Special to The Financial Chronicle)

has

E.'Blore
of

been

the decimal.

Walston

the

staff

265

Montgomery Street,

Some

Co.,

Inc.,
it

the

New

Coast Stock

York

members

and

Exchanges.

Pacific

The

seems.

turally
outcome

there

Are

figured

pave

th«*

Equities Hold Sway

off bv Columbia Gaac
1.675,415 share offering?
stockholders, on which under-**

Topped

System's

writing bids will be opened on*
Wednesday, next week, shapes up*
another active period for rais-.

ing of corporate capital by sale o£j
equities.
issues

such

Seven

cards, five

—

are

the*

the basis of "rights'?

and two, those

of California Elec-*— and

300,000 shares

Bell & Howell Co.'s 100,000

being made direct to the

shares*

public.

Reynolds Metals Co. has 914,078
shares going to stockholders who
exercise subscription rights; U. S.

746,270 shares of class A
to both A and

Foil Co.,
B

was

vast

majority

na¬

the

AT&T financing.

But

delighted

"fringe" of' investors

Corp.,

178,646

Public
shares of

Southeastern

and

Service

Corp.,

92,500

common.

Four

In the

Debt Issues Up

corporate debt issue mar¬

I.T.E. Circuit Breaker Co.,
will be marketing $10 million of
ket,

bankers

day

through

debentures
on

Tuesday.

Western

its

On the same

Massachusetts Elec¬
$12 million

tric will open bids for

bonds as a means of
funding outstanding bank loans. ,
The
next
day
Flintkote Co.,

30-year

through its bankers, will put $10
million of debentures on the mar¬
for

And

with

were

Vitro

holders;

Disappointed

just can't satisfy everybody,

You

would

ties.

ket

added, to

that

for better buying opportuni¬

25-year

price paid by the successful
100.5399 for a 4%%
coupon,
was
only 13 cents per
$100, or $1.30 per $1,000, above
the bid of the runners-up. And it
was noted that both groups carried
their bids out to four places after
aggregation,

SAN FRANCISCO, Calif.—Rich¬
ard

way

element,

entailing need for large allotments

The

son,

"dud"

stock to be offered

scription.
The

trie Power

limited to any particular

not

had

They

huge

the

for

Demand

rules

ordinary

measurement.

miscued.

that if the Telephone deal proved;

thony J. Taranto has been added

who op¬

was

Calif.

SACRAMENTO,

but even at the

opposite

the

bankirig groups placing decidedly
bids for the issue, consider¬

'R. A. Harrison Adds

of her friends and several of

she

years,

the

basis fixed for

the

there it is—read the papers.

the

has

our

them, she remarked, were very
Go over the society columns, tne wealthy.
I had never asked her
business news, the personals, with, for any recommendations but un¬
an
idea-to possible buyers of se¬ der these pleasant circumstances
curities. You will also find listed 1 did so. "Why I never thought of
there

Calif.—John G.

joined
the staff of
Jonathan
&
Co., 6399
Wilshire
Boulevard.
He
was
previously
with Daniel D. Weston & Co., Inc.
Finch

cost of the money to
highest in some 27

True, the
AT&T

had

the issuer too.

develop as you go along.

(Special to The Financial Chronicle)

several

selling.

can

(Special to The Financial Chronicle)

spent

good

back-log of prospects that

LOS ANGELES,

Listen

other

three-by-'

note

With Jonathan & Co.

.quite amusing
I finally told him how he
my "sucker list."

The

made

and it looks like a new client is in
the

got

hours

also

thought
when

the

won

followed

investments

appreciated,

after

tioned he

status

procedures for obtaining a domi¬
on

letter

on
a

was

much interested in

securities.

free

Make

you have a good telephone per¬
sonality and know how to develop
good will and confidence. (Some
day I may write some columns on
telephone salesmanship—exboiler room.)
But build up quali¬
fied prospects.
Every day keep
your
eyes - and
ears
open — it
doesn't take much time and it will

you

ahead.

J
numbers, how*
"bargain-hunters"' (p<itentiaD, naturally found that theyTheir

ever,

of the4 prospect.

seasoned

the

for

way

cheer.

to Date

of the
American
Telephone
& Tele¬
Write let¬ graph Co. brought its $250 million
ters to these people;
Make them of new debentures' to market at
short.
Follow
up
by telephone the right time judging by the re¬
and make appointments where in¬ sults of the
operation. This, the
dicated. Some people you^can gat
year's largest corporate ,debt urii
to know well over thfe telephone
dertaking to date, "clicked" with
and
you
can
do business witlr a reception that certainly must
them
without meeting
them, if have tickled the underwriters and
source

in your work—-start them young—
and by the way, that man did turn

told

of municipalities in his
Also, he was seri¬

ligations

youngest

of tax free bonds which were ob¬

cile,

looked like
nignt game.

List Up

names

your

cards.

daughter who was
with me did this prospecting for
me.
She said, ''Daddy, those peo¬
ple ought to be good prospects if
they can spend all that money on. build
My

that,"he

friends.

mutual

man.

some

stadium

is—get the whole family interested

the

area

lighted

I was going to call him
telephone. I did, and we
pleasant conversation dis¬

cussing

home

Yankee

the

of-lights and we
large mansion that was

well

were

Christmas decorations." The moral

him

the

noticed

town. -One

short letter and

him

.1 wrote

beautifully

the

I also remembered he

man.

was

contest for the most
our

of the wealth¬

most

was

and

decorated home in

memory
years

man

Eyes Open

Your

Around Christmas time there is

advertisement in the classified

Put

five

the

market in the period

who leaned tct
the bullish side found reason for

And Follow It

iadivid-

gift of $50,hospital in
People
with
a

new

Your

paper

all

made
to

day

•

and

And naturally those

Where Do You Find Clients?
ities.

file was pretty
that results attending
might very welt

rank

p&int
bond

she mentioned.

Ip building an investment cli¬
entele
you
follow certain well

""I"/'!

business

this

people whom

disappointed,

quite

were

much agreed

I also obtained the

circumstances.

By JOHN DUTTON

judging from Street gossip.

investments.
We
started right there and before we
left f had the opportunity to meet

Securities Salesman's Corner

Underwriter—Drexel & Co., Phila*

delphia, Pa.

her

1957 and due

1958 to 1972, inclusive. Probable bid¬

(S. S.)
it

March

•

quite

1 p.nrii.

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬

White

(jointly);

Stone & Webster Securities Corp.; White,

Co.

ler; Baxter & Co.

Salomon Bros.,& Hutzler; Eastman Dillon, Union Secu¬

Fund plans to offer
Underwriter—Kidder; Pea-

• *

April 3 for the purchase from it of $3,450,000

annually May 1,

Probable bidders

Securities

(4/3)-

this company

equipment trust certificates dated May 1,

include: Halsey, Stuart & Co. Inc.; Kuhn,

and

be- received

will

(EST)

through the

plans also to

First Boston

The

$20,000,000 of debt securities.

Brothers;

Lehman

it Western Maryland Ry.

Spring $22,000,000

common

(jointly);

Offering—Expected sometime in July.

announced company, in addition to pro¬

additional

Ta;

Underwriter

construction.

new

.was

securities, probably about $80,000*000
Proceeds — To tepay

Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.

for bonds may

(Canada)

stock.

the Fall

reported that this

was

Merrill Lynch,

Bids—Tentatively expected

raise late this

posal** to

senior

to issue some

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Kidder, Peabody & Co. and White, Weld

Virginia Electric & Power Co.
March 8 it

announced company plans

of first mortgage bonds due 1987.

Bids

working capital to finance expanding independent film
production. Underwriter—F. Eberstadt & Co., New York.
U.

Probable bid¬

was

be determined

Securities Corp.;;

be marketed
for
account
of the management
Proceeds—To retire certain debt and to increase

bank loans and for

r
■

additional

(6/4)

competitive bidding.

Webster

Pierce, Fenner & Beane.

Financial

licly $10,000,000 6% convertible debentures due 1969 and
350,000 shares of common stock, <$ which 100,000 shares
group.

Stone

(5/16)

West Penn Power Co.
Dec.

15 it was reported company plans to

ders:

United Artists Corp. (4/15-19)
March 20 it was announced company plans to offer pub¬

are

also announced company plans to offer

was

To be determined by

Inc.

Haupt

Washington Gas Light Co.

issue and sell
1,000,000 shares of common stock (par $8). Proceeds—
About $22,000,000 for new construction. Underwriters—

was

through

(10/1)

Virginia-Electric & Power Co.

Feb.

reported corporation Vis considering
public financing of about $4,000,000 convertible deben¬
tures

Oct.

public 400,000 shares of common stock.- Under¬
competitive bidding. Prob¬
Kidder, Peabody & Co, and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1.

Milwaukee, Wis.

Light Co.

able bidders:

sell

TMT

•

Boothby, President,, announced that
the company expects to raise about $8,000,000 through
the sale of first mortgage bonds in the Spring of 1957.
Proceeds—To repay bank loans and for construction pro¬
gram,
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blair & Co. Incorporated and Baxter & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and Stone
Webster Securities Corp. (jointly); Kidder, Peabody &
Co.; Equitable Securities Corp.; Eastman Dillon. Union
Securities & Co.; The First Boston Corp.
Bids--Expected to be received on May 16.
* *
* • - v.

writer—To be determined by

additional shares of 5% preferred stock
generally some additional common stock
during 1957. Price—Of preferred, $102 per share. - Pro¬
ceeds—For working capital and general corporate pur¬
poses. Underwriters—Emch & Co. and The Marshall Co.,
both

1972, inclusive.

Co. Inc.;

Dec. 12, Everett, J.

the

10,000

Power &

March 12 it

Thorp Finance Corp.

and

be received

scheduled to

Boston. Corp.; Eastman Dillon, Union Securities & Co.;.
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
thers (jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp.
(jointly).

was

by this company on Apirl 4 for
it of $1,200,000 equipment trust cer-?
15, 1957 and due annually from

April

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

tive

securities during 1957 to-obtain capital for its
continuing
plant expansion. -"Underwriter — For any bonds, to be

Jan. 30 it

dated

Probable bidders: Halsey, Stuart
Salomon Bros. & Hutzler; Baxter & Co.; R.
W. Pressprich & Co.
1958 to

Inc.; The
(jointly);

expects to

program.

Dealer-

•'

company

plans to issue and

company

—

Co., New York.

Co.

tificates

received

the purchase from

(10/1)

about $15,000,000 of first mortgage bonds due 1987.
Proceeds
To "repay bank loans and for construction

stock

common

will

Bids

Light Co.

(4/4)

Virginian Ry.

Expected in early

—

sell

issue and

stockholders).

common

Power &

Offering

12 it was announced

March

Co.

Manager—Goldman, Sachs
2

Utah

July.

reported

was

(probably first to

Jan.

body & Co., New York.
Spring.

Co.

public subscription.
r'Thursday the debt end

^calendar will be cleared
away with the opening of bids for
a
small railway equipment trus*"
issue. $1.2 million, being offe>*
of

the

by Virginian Railway.

The Commercial and Financial Chronicle

*Continued from page

To repay

the company some
time in the Fall for the purchase from it of $14,400,000
equipment trust certificates.
Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Metropolitan Edison Co.
was reported that company is now considering
the
sale
of
$19,000,000
first
mortgage
bonds due
1987.
Underwriter
To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel & Co. (jointly); The First Boston
Corp; Bids—Not expected to be received until sometime
in April or May, 1957.
Jan. 29 it

—

Michigan Consolidated Gas Co.
March

plans to issue and
sell between $25,000,000 and $30,000,000 of first mort¬
gage bonds before Summer.
Proceeds—To repay bank
loans and for construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders. Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Blyth & Co., Inc. (jointly); White, Weld & Co. and
Lehman Brothers (jointly). I
reported* company

was

Minneapolis & St. Louis Ry.

the company up to noon (CST)
April 23 for the purchase from it of $2,700,000 equip¬
ment trust certificates, series A dated May
10, 1957,
to mature annually in l-to-15 years. Probable bidders:

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Montana-Dakota
14

Jan. 10 it

was

company

(5/28)

reported company plans to issue

$15,0(f0,-

vJlOBof

new 25-year debentures. Proceeds—To make addi¬
tional investments in securities of subsidiaries.
Under¬

writer
To be determined by competitive
bidding.
Pronakle bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—
Tentatively scheduled to be received up to 11:30 a.m.
(EST) on May 28. Registration—Planned for April 18.
—

National
March
to

Telefilm Associates,
was

announced

Proceeds—For

debentures in the

reduction

short-term

near

debt,

Working capital and other corporate purposes. Under¬
writer—May be Charles Plohn & Co., New York.
I

New England Electric System

Jan. 3, 1956, it was announced company plans to merge
fits

subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury (Electric Light
Co., into one company.
This would be followed by a
$20,000,000 first mortgage
bond issue by the resultant
company, to be known as
Marrimack-Essex Electric Co.
Underwriter—May be
determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company;
Salomon
Bros.
&
Hutzler, Eastman
Dillon, Union
Securities & Co. and Wood, Struthers & Co.
(jointly);
Lehman Brothers; The First Boston Corp.; Equitable

Securities Corp.;. Merrill Lynch, Pieice, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.
New Jersey Power & Light Co*

Sept. 12 it was announced company plans to issue and
reli $5,000,000 of first mortgage bonds.
Underwriter-^-'
To

determined

competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man Brothers and Salomon Bros. & Hutzler
(jointly);
Eastman Dillon, Union Securities & Co. and
White, Weld
& Co, (jointly): Equitable Securities
Corp.; The First
Boston Corp.; Merrill Lynch. Pierce. Fenper & Beane.
by

p New Yorpc State Electric & Gas Corp.
Oct. 24 it

was

(5/14)

announced company

plans to sell in 1957
$25,000,000 of first mortgage bonds, and an additional
$20,000,000 in 1958. Proceeds—To finance construction
program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

(jointly).

(5/21)

head group

borrowings.

■

Northern States Power Co.
March

Underwriter—To be

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids
Norfolk & Western Ry.

May 21.

(4/10)

are

expected to be received by this company on
•April 10 for the purchase from it of $6,600,000
equipment
trust certificates.
Probable bidders:

Co. Inc.; Salomon Bros,. & Hutzler.

Northern Natural Gas Co.
March 6 it was announced
company

Halsey, Stuart &

plans to issue some
preferred stock this year.
Proceeds—

underwritten

reported

was

sell in the Fall of

...

plans to

company

issue

and

Underwriter—To
be determined by competitive bidding. Probable bidders:
•halsey, Stuart & Co; Inc.: Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.;
Harriman Ripley & Co. Inc.
States

Northern

March

4) it

program.

Power

Co.

(Wis.)

during 1957.- Proceeds — To repay bank Team
(amounting to $25,000,000 at Dec. 31, 1956) and for new
Underwriter—To foe determined by com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harrfcman Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman Dillon,
Union Securities & Co. (jointly).

(6/4)

•

Telephone Co. (4/23)
company intends to issue and
due May 1, 1989.
loans and for construc¬

Jan.

over

—For construction

Jan.

March 13 it

York.
•

in 1957 issue
soipe $14,000,009 to $15,000,000 of senior securities. Pro¬
ceeds
To repay bank loans and for construction pro¬
gram. Underwriter—For-any bonds to be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Equitable Securities
Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder, Peabody &• Co.; W. C. Langley & Co. and The First Boston Corp. (jointly). Offer¬
ing—Expected in May.
company

may

—

Principal Retail Plazas of Canada, Ltd.
Feb:

was

reported

that

(Canada)

early registration is ex¬
pected of an issue of $15,000,080 of subordinated deben¬
tures due 1932 and 1,500,000 shares common stock to
be sold in units of $50 of debentures and five shares of

1958,

the

California Gas Co.

was

announced company

•

plans to issue arid

first mortgage bonds. Proceed^
bank loaps^ and for new construction. Uriderwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly). Offering—Expected in August
—To

negotiated basis.

announced

sell about $35,000,000 of

Under¬

Ar Portland General Electric Co.

was

Quinton,

$180,000,000 of new .money in 1957 and

than

addition

Southern

(6/10)

reported company plans offering to com¬
stockholders of about 112,988 shares of additional
was

Harold

20.

$37,590,000 bond issue of February,
1957. (A total of $70,000,000 may be raised in 1957.)
Underwriters— (1) For any bonds, to be determined by
competitive bidding. Probable bidders may include: Hal¬
sey, Stuart & Co; Inc.; Blyth & Co. .Inc.; The First Boston
Corp. and Dean Witter & Co. (jointly); Kuhn, Loeb &
Co. (2) For aiiv preferred stock: May be The First Bos¬
ton Corp. and Dean Witter & .Co. (jointly).
-

Co.; The First Boston Corp.; Morgan Stanley & Co. and
Drexel & Co. (jointly).

part of May.

bonds. Proceeds—For expansion program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Edison Co.

of $70,-

Proceeds
prograrri. Underwriter—To be deter¬

President, announced that
for the balance of this year the company's present in¬
tention is to issue additional, bonds and probably a pre¬
ferred stock.
He added that the company will require

gage

was announced company
plans to issue and
300,000 shares of common stock in April or Mav.Underwriter—Blyth & Co., Inc., San Francisco and New

issue and sale

competitive bidding. Probable bidders: Halsey,
Inc.; Morgan Stanley & Co. Bids—Expected
received on June 18.
Registration—Planned; for

March

sell

Telegraph Co; (6/ LB)

the

if Southern California Edison Co.

14 it was also announced company plans to issue
and sell in the second half of 1957 additional first mort¬

on a

Stuart & Co.

Feb.

writing—May be

received by this company

mined by

plans to offer about

l-for-5 basis.

to be

000,000 of 29-year debentures due June 1, 1986,

Philadelphia Electric'Co.

Kuhn,

reported company plans to issue and sell.

14 it was

latter

—-

(5/23)

expected

are

Southern Bell Telephone &

Dealer-Managers — Drexel & Co., Philadelphia,
Pa°., and Morgan Stanley & Co., New York, N. Y.
^

stockholders.,Underwriters

certain

Feb. 25 directors authorized

gram.

stock about June

approximately 183,000 shares are to be offered

Halsey, Stuart & Co. Inc.; The First Boston Corp* and
Lehman Brothers
(jointly);. Kidder, Peabody & Co.;
Eastman Dillon, Upion Securities & Co. * Bids—Not ex¬
pected to be received until next Fall.

common stock to its stockholders about
the middle of the year on a basis of one new share for
each 20 shares held. Proceeds — For construction pro¬

common

$10,000,000 of first mortgage bonds. Underwriter—To be
determined
by competitive bidding. Probable bidders:

600,000 shares of

mon

expected

South Carolina Electric & Gas Co.

announced company

Coke,Co*

May 23 for the purchase from it of $2,475,000 equipment
trust certificates, due semi-annually, from July 1, 1957,
to Jan. 1,
1972, inclusive. Probable bidders:
Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Telephone Co.

Gas &

registration

month of about 213,000 shares of common stoclc,

Reading Co.

Philadelphia Electric Co.

Portland

reported

was

the company late in May to its stockholders on a
30,000 shares are to be sold for

Bids

Pennsylvania Electric Co.
Sept. 12 it was announced company plans to issue and
mortgage bonds. Underwriter—
competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union .Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.

•

Halsey, Stuart

Co., New York, and Johrison, Lane, Space & Co.,
Savannah, Ga.
.•
1
*

sell $6,000,000 of first
To be determined by

March 21

(company

Loeb &

plans to offer to its
189,844 additional shares
of common stock. Proceeds—Together with funds from
proposed bond sale, to finance new construction. Under¬
writers—Morgan Stanley & Co. and Coggeshall & Hicks,
both of New York City.

20
a

account

phone & Telegraph Co. Underwriter—For any bonds, to
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

announced company

bonds

l-for-3 basis and about

part, by debt borrowings and stock issues.
American Tele¬

was

President, announced that

company

bidding. Probable bidders:
The First Boston Corp.

Inc.;

about

About 90% of Pacific's stock is owned by

stockholders not

Co.

of which

Telephone & Telegraph Co.
James S. Cantlen, Vice-President, announced
that company plans to spent $159,000,000 in 1957 and
$157,000,000 in 1958 for expansion and improvement to

was

mortgage

March

14,

Feb; 14 it

first

it Radiation, Inc.

Pacific

common

the

1957

competitive

Underwriter—To be determined by com¬
probable bidders: Halsey,, Stuart &
Co. Inc.; Morgan Stanley & Co.; The First Boston Corp.;
Eastman Dillon, Union Securities & Co. Bids^-Expected
to be received around April 23.

March 6 it

later

bidding*

be financed in

McLaughlin,

Frank

plans to sell an issue of
is authorized to issue
$25,000,000 additional principal amount). Proceeds*—To
retire bank loans. Underwriter—May be determined^ by

tion program.

Jan.

Puget Sound Power & Light Co.

Feb.

sell $30,000,000 of 32-year debentures

petitive

initially

pany,

announced

Proceeds—To retire short-term

announced that it is expected that a new

was

construction.

first mortgage bonds due 1987. Pro¬
program.
Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Beane; Lehman Brothers and Riter & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly). Bids—
Expected to be received on June 4.
Bell

scheduled for 1956) will be issued and sold by the conr-

construction

was

series of first mortgage bonds'(about $30,000,000

sell $10,000,000 of

Feb. 23 it

Probable bidders:

new

Public Service Co. of Indiana; Inc.
Feb.

reported company plans to issue and

was

Underwriter—To

by competitive bidding.

for

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston Corps.;
Blyth & Co., Inc. and Smith, Barney: & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc.
BidsExpected to be received up to noon (EDT) on May 20,

r..

(Minn.)

1957 $15,000,000 first mortgage bonds.

construction

Proceeds—For

■

Proceeds^-To repay

construction.

loans and

be determined

(5/20)

plans the issue and sale

$30,000,000 first mortgage bonds.

bank

Stearns

Public Service Co. of Colorado

repay

September, 1957.

Spokane, Portland & Seattle Ry.

Bids

determined

—Scheduled to be received

Co., both of New York,
in United States.
Offering—Expected in

Bear,

April.

Dec*.

was announced
company plans to issue arid
$70,000,000 of refunding mortgage bonds. Proceeds

debentures and

and

Potomac

March 18 it

—To retire short-term

Bids

Co.

Bids—Expected May 14.

New York Telephone Co.
sell

Peninsular

plans to issue

Balance to

Oct. 8 it was reported company

$10,500,000, together with private financing, to be used
for new construction.
Underwriters — Hemphill, Noyes

Inc.

company

$8,000,000 convertible notes

future.

notes and common stock in units.

Northwestern

plans to issue and
'sell $10,000,000 of first mortgage bonds or convertible
debentures before June 30, 1957.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey,: Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lyhch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly); Blair & Co., Incorporated.
National Fuel Gas Co.

and sell
Proceeds—About

Canada.

March 1 it was reported company plans to issue
some

Utilities Co.

reported

was

—

two-thirds of issue.

about

determined

Bids will be received by

March

Northern Ontario Natural Gas Co., Ltd.

ceeds—For

(4/23)

Thursday, March 28,1957

expansion and working capital.
Operates shopping centers. Underwriter —
Eastman Dillon, Union Securities & Co., New York, for

Business

—

Francisco.

Louisville & Nashville RR.
Bids are expected to be received by

Proceeds—For

stock.

bank loans ($18,750,000 at Dec. 31, 1956). Un¬
Blyth & Co., Inc., New York and' San

derwriter

are

noon

(3/28)

expected to be received by the company up to

(EST)

March 28 for the purchase from it

$3,690,000 of equipment trust certificates. Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

ders:

Sundstrand
March 11

Machine Tool

was

reported

Co.

company may

do some equity

financing in April (first to stockholders). Underwriters—
•Merrill Lynch, Pierce, Fenner & Beane and Dean Witter
Co.

Tampa
March

Electric Co.
it

was

reported company plans

to issue and

$18,000,000 of first mortgage bonds. Proceeds
-^To repay bank loans and for,new construction.
Un¬
derwriter—To be determined by competitive bidding.

sell about

Probable

bidders:

Halsey, Stuart & Co.- Inc.; Goldman,.

Volume 185

Sachs

Number 5624

The Commercial and Financial Chronicle

Co.; Stone & Webster Securities Corp.; Kuhri,and A. C. Allyn & Co. Inc.
(jointly); Mer¬
Lynch, Pierce, Fenner & Beane. Bids—Expected to

body & Co., New York.
Spring.

Loeb & Co.
rill
be

received

Tampa
March

time

some

Utah

July.

reported

was

Power &

Offering

Expected in early

—

Light Co.

plans

company

sell about 217,000 additional shares of
1957 (probably first to common

stock

common

stockholders).

Manager—Goldman, Sachs

& Co.,

Texas Electric Service Co.

sell

issue and

Proceeds

To "repay

—

bank loans

tificates

for

and

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First

scheduled

to be

received

Power &

Utah

Oct.

Light Co.

plans to issue and sell

locally

10,000 additional shares of 5% preferred stock
sell generally
some
additional common stock
during 1957. Price-^f preferred, $102 per share. Pro¬
ceeds—For working capital and general corporate pur¬
to

both

Virginia Electric & Power Co.

•

1,000,000 shares of

Milwaukee, Wis.

About

TMT

Trailer

March

Ferry,

To be determined

Inc.

reported .corporation vis-considering
public financing of about $4,000,000 convertible deben¬
tures

through

Ira

Haupt

Pierce, Fenner & Beane.

Co., New York.
Financial
Adviser—Salomon Bros. & Hutzler, New York.
&

June

United Artists Corp.

(4/15-19)

announced company plans to offer pub¬

was

March 8 it

licly $10,000,000 6% convertible debentures due 1969 and
350,000 shares of common stock, of which 100,000 shares
be

are

marketed

for

account

posal to

rities

Bids—Tentatively expected

group.

working capital to finance expanding independent

the Fall

Fdb. 25

Fund, Ltd.

nf. r»nrnfp]

(Canada)

Co.

Weld

Co.

sell

Lehman

be- received

Corp.

ders:

White
March

(S. S.)
it

was

her

friend

names

under

most

long-term financing.

who

Keep

building an investment cli¬
you
follow certain well

entele

established

procedures

to pros¬

pecting. They consist of a simple
plan of reading, seeing, and list-

erlingf

die"

listed

uals who had
000

or.

day
of

names

favorable

.point

made
to

more*

individ¬

gift of $50,hospital in
People
with
a

new

community.
money make news.

For example, there

The

paper.

other

column

offering

yacht for sale.
was

given.

back

almost

who

name

was

individuals
name

than

same

the

re¬

same

of the wealth¬

city.

anomer

and

unusual

likely could

be ih&

I also remembered

man.

Around Christmas time there is
a

contest for the

most

decorated home in

evening

beautifully

our

One

town.

looking at the
Christmas display of lights and we
noticed a large mansion that was
so
well
lighted
it
looked
like
Yankee

were

stadium

at a nigit game.
daughter who was

youngest

with

did

this

prospecting for

She said, "Daddy, those

me.

peo¬

short/letter and

Christmas decorations." The moral

going---to call him
the telephone:
I did, and we

is—get the whole family interested

told

him

had

anqther

area.

,1 wrote him
I

was

pleasant conversation dis¬

cussing

mutual

the

man.

Not

had

of tax free

friends. He was
only that, he told

just

bought

bonds which

$400,000
were

ligations of municipalities
home

state.

Also,

ob¬

his

seri¬

was

ously thinking about a change of
domicile, and the addition of some
bonds to his investment portiolio
that

wrere

area

where

formation

which

representative
I

live.
the

his

some

offered

tax

existing

cile,

tax

making.

domi¬

advantages,

Don't write and ask
a

commission sell¬

ing his yacht too—but it's an idea.
So

there it is—read

thought
when

got

the

won

followed

him

sent

newspaper

the

first prize

with

call.

quite

was

finally told

and
He

amusing

him

how

The

other
with

day

there

names

and

listed

of charitable

ganizations, estates, hospital

paigns,

fied

inviting

had luncheon at

restaurant.

luncheon
some

arrived at the

this

the donors to

or¬

1 did

it,"

so.

client

cam¬

told

char¬

erated

"Why I

During
told

never

said/rand
that the

Every

eyes

and

day
open

ears

keep
—

doesn't take much time and it will
build
you

back-log of prospects that

can

ail

(Special to The Financial Chronicle)

LOS ANGELES,

Calif.—John G.

woman

this restaurant

that

she

who op¬

was

one

Tele¬

market

right time judging by the re¬
of the operation.
This, the

sults

year's largest corporate debt un¬
dertaking to date, "clicked" with
a
reception that certainly must
have tickled the underwriters and

the issuer too.

AT&T

the money to
highest in some 27

the cost of

True,

the

but even at the 4.30% yield

years,

basis fixed for reoffering the price

paid by the company was not ex¬
orbitant
by
ordinary
rules
of
That

measurement.
the

Demand

less artificial

the

for

limited to

not

excluding

the last 20 years or so.

seasoned;

those^who leaned tQj

side found

particular

field.

The

appeared

sponsoring group was
quick oversub¬

announce

scription.
The

stage for

successful

deal

to have been set from
start,
with
two
competing

the

for

J-

numbers, howr*
"bargain-hunters" (po-:

opposite

the

tential), naturally found that theyhad

miscued.

"dud"

figured?

They had

deal proved

that if the Telephone

would

that

the-

pave

for better buying opportune

way

ties.

w,.

Equities Hold Sway

off

Topped

1.675,415

System's
to

stockholders,

writing

offering*

which under-r'

will

bids

Gas*

Columbia

opened

org

Wednesday, next week, shapes,up*
as another active period
for rais-.

ingi of corporate capital by sale oL*
equities.
.

Seven

issues

such

cards, five

are

the basis of

the*,

"rights'^

California Elec-*— and
Howell Co.'s 100,000 shares*

and two, those of

Bell &

offering

reason

trie Power

huge
any

ease

segment of the investing fraternity
but rather embraced
the entire

with Daniel D. Weston &

Co., Inc.

the

able

has

Telephone

debentures

new

joined
the staff of
Jonathan
&
Co.,
6399r Wilshire
Boulevard.
He
was
previously
Finch

—

300,000 shares

being made direct to the public,

Reynolds Metals Co. has 914,078
shares going to stockholders who
exercise subscription rights; U. S.
Foil

Co., 746,270 sl%ares of class A

stock to be offered

to both A and

Corp.,

holders;

Vitro

Service

178,646
Public

Southeastern

and

Corp.,

92,500

common.

Calif.

SACRAMENTO,

banking groups placing decidedly

—.

the

staff

Richard

bids for

An¬

Harri¬

its

Inc., 2200 16th Street. He was

formerly with Kidder, Peabody &
Co.

Walston Adds to Staff

underwriting capital, naturally

(Special toTiiE Financial Chronicle)

SAN
ard

Blore

has

been

noted that both groups carried

their

bids out to four places after

the decimal.

staff

Montgomery Street, members

o^' Walston & Co., Inc.,
New

Coast Stock

York

and

Exchanges.

Pacific

In the

ket,
will

You
it

seems.

turally
outcome

there

The

vast majority na¬
delighted with the
of AT&T financing. But

were

was

"fringe" of* investors

Breaker

Co.,

through

debentures
on

Tuesday.

Western

its

On the same

Massachusetts Elec¬
$12 million

tric will open bids for

30-year bonds as a means of
funding outstanding bank loans. .
The
next
day
Flintkote Co.,
of

through its bankers, will put $10
million of debentures on the mar-*

Disappointed

just can't satisfy everybody,

Circuit

marketing $10 million of

bankers

day

Debt Issues Up

corporate debt issue mar-*

I.T.E.
be

25-year

ket
Some Are

added, to

265

the

100.5399 for a 4%%
coupon,
was
only 13 cents per
$100, or $1.30 per $1,000, above
the bid of the runners-up. And it

FRANCISCO, Calif.—Rich¬

the

price paid by the successful

aggregation,

was

Four

size.

limited the bidding field.
The

son,

the issue, consider¬

The latter element,
entailing need for large allotments
ing

thony J. Taranto has been added

thought of

with

was

our

American

graph Co. brought its $250 million

develop as you go along.

With Jonathan & Co.

of her friends and several of

she

But build up quali¬

prospects.

your

several

client and

trip to look at some prop¬
she had been thinking of
selling.
The trip was about 50
we

salesmanship—ex-

telephone
boiler room.)

the papers.

You will also find

the

have a good telephone per¬
sonality and know how to develop
good will and confidence. (Some
day I may write some columns on
you

erty

destination

do business with
meeting them*, if

can

without

R. A. Harrison Adds

miles and when

the

pretty;

was

the

for

way

bullish

ever,

three;iby-'

note

(Special to The Financial Chronicle)

spent

good

on
a

of the' prospect..

you

them

the

Their

them, she remarked, were very
Go over the .society columns, toe. wealthy.
I had never asked her
business news, the personals, with, for any recommendations but-un¬
an
idea to possible buyers of se¬ der these pleasant circumstances
curities.

and

"sucker list."

names

Make

disappointed*

file

and

cheer.

Write let¬
ters to these people#
Make them
short.
Follow
up
by telephone
and make appointments where in¬
dicated. Some people you can get
to know well over the telephone

men¬

your

cards.

source

Listen

made

also

securities. A

after

tioned

hours

and it looks like a new client is in

if I've made

letter

staius

appreciated,

certain

free

tax

the
in¬

Put

five

in your work—£tart theiti young—
and by the way, that man did turn
out to be very much interested in

investments

procedures for obtaining a

the

Eyes Open

ple ought to be good prospects if
they can spend all that money on

customer

in that

Your

firm

was

most

was

went

and

years

one

iest

name

memory

man

The
it

expensive

The owner's

membered

Keep

advertisement in the classified

is the daily
day I noticed

to Date

b(|nd market in the period ahead.

And Follow It

paper

all

rank

And naturally

List

Your

Phila¬
:

quite

were

The

the

other

-do..,

much agreed that results attending
this
business
might
very
well

she mentioned.

The

p.rm

judging from Street gossip.

Where Do You Find Clients?
ities.

Underwriter—Drexel &
♦

peopjlje whom

Dental Manufacturing Co.'

I also obtained the

two

reported company is considering, som^.

she (had

that

and

company

1958 to 1972, inclusive. Probable bid¬

few

circumstances.

this

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutz¬

investments.
We
started right there and before we
left I' had the opportunity to meet

JOHN BUTTON

(4/3)

delphia, Pa.

friends

Beston

First

ler; Baxter & Co.

(jointly);

her

Securities Salesman's Corner

Brothers;, The

April 3 for the purchase from it of $3,450,000

annually May 1,

Stone &< Webster Securities Corp.; White,
-

will

(EST)

Probable bidders

Securities

American

quite

Co.; Kidder, Peabody & Co. and White,'Weld
(jointly);

equipment trust certificates dated May 1, 1957 and due

the

include: Halsey, Stuart & Co. Inc.; Kuhn,

and

rities & Go.-;

plans to offer
Underwriter—Kidder, Pea-

ptnek.

$20,000,000 of debt securities.

To;

Offering—Expected sometime in July.

Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬

reported that this Fund

was

Sns onnnno

Loeb

production^ Underwriter—F. Eberstadt & Co., New York.
U.

plans also to

stock,

Underwriter

Spring $22,000,000 through

common

some

Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Incu

announced company, in addition to pro¬

was

for bonds may

turn

construction.

new

Power Co.

raise late this

plans to issue

securities, probably about $20,000*000
Proceeds — To fepay

^Western Maryland Ry.

additional

sale

management
Proceeds—To retire certain debt and to increase

Co.

Probable bid¬

the

announced company

senior

:
.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬

Bids

March 20 it

...

be determined

Virginia Electric &

>■

Webster Securities Corp.;. Merrill Lynch,

ders:- Stone &

was

by competitive bidding.

* *

of first mortgage bonds due 1987.

&
•

was

additional

construction. Underwriters—

new

bank loans and for

(6/4)

May 16.

West Penn Power Co.
Doc. 27

(par $8). Proceeds—

stock

common

$22,000,000 for

Securities

pected to be received

15 it Was reported company plans to issue and sell

Feb.

Underwriters—Emch & Co. and The Marshall Co.,

poses.

Pierce, Fenner & Beane and Stone &>
Corp. (jointly); Kidder, Peabody &
Co.; Equitable Securities Corp.; Eastman Dillon. Union
Securities & Co.; The First Boston Corp.
Bids—ExLynch,

Webster

Kidder, Peabody & Co, and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1.

Thorp Finance Corp.

(5/16)

Everett,, J. Boothby, President,, announced that
the company expects to raise about $8,000,000 through
the sale of first mortgage bonds in the Spring of 195T.
Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blair & Co. Incorporated and Baxter & Co. (jointly);

(jointly).

Washington Gas Light Co.

Merrill

able bidders:

and

1972, inclusive. Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler; Baxter & Co.; R.
Pressprich & Co.

Co.

•

company

by this company on Apirl 4 for
it of $1,200,000 equipment trust cer~April 15, 1957 and due annually from

dated

Dec. 12,

(10/1)

March 12 it ^was- also announced company plans to offer
to the public 400,000 shares of common stock.
Under¬
writer—To be determined by competitive bidding. Prob¬

Jap. 30 it was-reported-

&
W.

bidding.

Boston. Corp.; Eastman Dillon, Union Securities & Co.;:
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
thers (jointly); "Harriman Ripley & Co. Inc. and Stone

Corp.

received

1958 to

construction

Underwriter—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler;. Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively

tive

Ne\y York.

2 it was announced
company expects to sell new
securities during 1957 to-obtain capital for its continuing
plqnt expansion. Underwriter — For any bonds, to be
determined by competitive bidding.
Probable bidders:

Securities

program.

Dealer-

Jan.

Webster

will

the purchase from

(10/1)

was announced company plans to issue and
$15,000,000 of first mortgage bonds due 1987.

about

(4/4)

Virginian Ry.
Bids

March 12 it

Electric Co.

63*

<1503);

for

And
of

public subscription.
Thursday the debt end
will be cleared

the

calendar

with the opening of bids for,railway equipment trusJT
issue. $1.2 million, being offered

away
a

small

by Virginian

Railway.

€4

The Commercial and Financial Chronicle

(1504)

With Palmer,

Thursday, March 28, 1957

Mass. Growth Stock Fund

Pollacchi

(Special to The Financial Chronicle)

BOSTON,

Mass.

Churchward is
Pollacchi

John

—

Sets New Records

Mutual Funds

with Palmer,

now

months

Scattergood Director
Harold
of

More News

Scattergood, partner

elected

been

director

fronts,

by insurance companies or others wishing, to offer these

be done

American Insulator Corporation.

on many

basic fact remains: Nothing of a permanent nature can

one

annuities

stock-backed

common

the

until

the public

case

097

There, before the United States District Court for the District

which has been selling these

that Variable Annuity Life Insurance,

Company Act of 1940 and, thus, other securities'
is

case

not

expected

decided

stand.

.vi'

reflations.

Fall,

until

■.*:

,:'v

matters

together with

'.Gv'-.

legislature, the state's banking and securities commissioners said
they
Capital

gains

distributions,

per

annuity

share, will be paid April 24, #957 to
or

shares,

April 5,1957,
follows:

Stock Series

life

leading

sizable insurance

defined

since

insurance

not

.23

security

Growth Stocks Series...

something which

remain

Incorporated

selected

invested

INCOME in the years

year,

half of this
the national economy should

enter

annual rate of $435 billion by year

securities
for possible

GROWTH of CAPITAL

end, President. Charles Devens of

Incorporated Investors, one of the
country's largest mutual invest¬

and

ahead.

ment

stockholders

funds, told

the annual meeting.
-

INVESTING

"We

differ

econ¬

many

Incorporated

.Heel?/income Fund

mid-year and then the second half
of this year will see the national

CURRENT

ZZVritZ!"''

<By the end of the
the

>»L

w<*out

at the

"If
i

/prospectus

fund in
yitnr

available

appears

from

good

in regiment dealer.

the

year

little

year,

thing to have

most of

resources,

Berkeley Street

and

expect to

Boston^jvl ass.

Elected
D.

directors

There

George

Stockholders

also

were

con¬

common

assuming

voted

George

elected

in¬

$35.59.

warrants,

noted,

5,977,204

stock

common

and

1,-

outstanding

on,

common

and

2,166,893

outstanding at Dec. 31.

common

Chairman

Stockton.

was

the

More than 75% of the preferred
and

the authorized capital stock

common

all

and,

warrants

our

L. Moulton clerk.

from 30,000,000 to

that

shares combined, the

million
increase

stated,

4Q,000,000 shares

stock.

Re-elected
liott

were

directors

Bell,

barrels

oil

daily,

50%

above

about

I. D. S.

Investors

were:

El¬

the

Inc.;

Hanau, Chairman of
Committee
State

and

Bank

Newark, N. J.; Lewis A. LapCarl

firm

5,400

17,400

2,000

24,500

Organ Company.
Macli.

Bus.

10,000

50,000

1,000

4,900

10.000

Wo^ld Airways. 20,000

60,000

Amer.

Polaroid

Corp.

Rohm

Haas

___________

Co.^2

Sheraton

Corp.

Travelers

Insurance

4,500
78,000

2,500

12,500

Company-.__

Services,

Jet

5,000

215

5,000

Co.__

10,000

5,000

....

of America.

Gas Corp.

Warren

Welex

700

30,000

25,000

4,200

32,000

Inc.—

SALES
Now
Sold

Company
American

20,000

Corporation

Rts. 20.000

Corp.

_——.

6,500

Works

8,500

Glass

Eastern

Aif^Lines, Inc

Lincoln

Natl.

Motorola,

Own*

Airlines, Inc.

Burroughs

Life

3,500

^-10,200

Ins.

6,000

Co._£ 1,000
17,100

Inc.

(G.

D. >

9,700

Co...

Dividend Shares

The

Payment
yes¬

the

with

izer,

sponsor,

and

Services,

the fund's organ¬

Fitzsimmons

Chief

and

The

quarterly

term

order

mutual

the long-

invest for

""use

their

This

chief

officer

but would

$2% tax

dividends,

elect instead

said

to pay

received,

over

paid in the previous quarter and
corresponding quarter one
year ago.

drawing divi¬

ica

"front-load"

group

conjunction

will

not

Shareholders

may

when

elect,

they begin withdrawing their in¬
vestments
come,

to have

supplement to in¬
a

percent of hold¬

& Moore, general- counsel for Tri-

ings paid periodically or a speci¬

Continental.

fied

dollar

S s e

Calvin

Bulloek.

approximately

are

$250,000,000, and some 85,000 in¬
vestors own shares.

asset®

"blue-chip"

It invests its

in high-quality,

primarily

common

stocks;

Manhattan Bond Fund, Inc; has

declared

dividend

8.5c

per

the

75th

fund's

amount.

consecutive

quarterly income dividend brings
dividends for the first half of the
1957 fiscal year to

term insurance feature.

the

which payable. April ?25 to shareholders
of record April 1. This declaration
mam¬

fund,

certificates,

savings
a

one

of mutual funds under the

share from net investment income,

with Investors Syndicate of Amer¬

have

Its

Dividend
group

corporations

be-sold by the I. D. S.
sales

the

15% of total dividend

dends from other corporations.
The

sec¬

payment is an increase of
the 2 cents per share

12y2%

management
holdings

later for retirement purposes.

the fund would pay no

the

payment

fund's 1957 fiscal year.

fund has been designed for people
who wish

and

income

in the

Officer,

stock

growth

new

President

named

Executive

April 10. This dividend.,
entirely from net in¬

derived

ond

investment manager

distributor, while Joseph

Whitehall Fund

first quarter
a

17c per share.
has declared

Business Shares

incorporated mutual fund pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to

A
The

CALVIN

BULLOCK

anced

payable March 31 to share¬

holders of

March

record

12.

The

payment will be the same as was
made

each

the

first

three

selected

ONE WALL STREET, NEW YORK i

EATON & HOWARD

BALANCED FUND

STOCK FUND

supervises

Managed by

portfolio
bal¬
preferred stocks
for
stability, and common stocks
for growth possibilities.

between

selected

Established 1894

-*■

EATON & HOWARD

Balanced Investment Fund

Company

bonds

Prospectus

EATON

and

ESTABLISHED
.Jl.'.i

Name

Address

Lord, Abbott & Co.

New York

—

Chicago

—

Atlanta

—

Prospectuses-from
Los Angeles

Russ

BOSTON

request

BOSTON

HOWARD

INCORPORATED

24 Federal Street
upon

your

•

dividend of 10 cent3

American
—A U. S.

shareholders of record at the close
of business

vestment

Diversified

Divi¬

of directors of

board

Shares, Inc. has declared

quarterly dividend of 2Y4 cents
per share payable May 1, 1957^to

is listed

Painter, member of
Cravath, Swaine

Increases Dividend
dend

Variable

do under law when

ham, President of Grace Line Inc.,
and

17,000

Ltd.

Corp.

Searlc

Company,

Director of National

the law

19,550

4,000

bli_WeIl

Union Oil &

Begins

Investors
Inc.

moth

19,550
Co._

National Lead Company—..
Pan

shares.

moij

Hill

Executive

Canada,

Motor,

Internat'l

Securities and
Exchange Commission 10,000 comterday

may

the

Nemours

Hammond

Mutual Fund

Executive Committee of McGraw-

Kenneth H.

Cementing

"Variable Paym't"

repre¬

Chairman

Publishing

17,500

Ford

the current level.

income

sented at, the meeting.

Charles H.

Treasurer and

crease

Chatfield, Charles P.

Aldrich

stated

said.

March 22, compared with 5,576,634

Lowell, Amory Parker, William
Parker,

$42.60

were,

Curtis, Charles Devens, Raymond

supporting

are

share of Tri-Continental
was

2,500

Casualty Co.-l-

Dominion Stores. Ltd

Corning

capital

activity^

Randolph

35,766

States will be consuming close to

share¬

large-scale

high level of
;Mr.

Emerson, Francis W. Hatch, James
H.

most recent estimate of assets per

Aldrich, William A. Barron, Jr.,

William

reported

investment and increased govern¬

23.334

4,901

Carrier

Fund, Inc., Minneapolis, filed

expenditures,

3,190

"B"

estimates that by 1965 the United

com¬

High incomes and consumption,

tinue along these lines."

investment

meeting

together with

25.000

"A"

Broadcasting

exercise'of

think it is

holders.

expect

be going • along

going to have

business

2,000

Broadcasting

7%, respectively, of its port¬
folio, the directors noted that since
the end of World War II, gasoline
consumption has almost doubled
and demand for heating oil has
nearly tripled. The report quoted

8,500

good part of

President,

annual

851,483

will,

arid

man

investments in the field of natural
The Parker Corporation
200

industries, in which the fund

8,500

Columbia

duPont

natural

invekinents amounting to 20%

Francis F. Randolph, Chair¬

pany,

stock

year.
are

for

closed-end

stated.

rate of approximately $435

inflation from

pad/

year we

will

economy

billion

expanding,"' he

economy

fied

ment

from

omists in that we think the pres¬
ent lull will continue until about

for

Halliburton

gas

5,000
30,000

Columbia

Continental

through the Cumula¬
Shares
outstanding
totalled
11,135,547
compared with 9,006,661 a year
ago.
All figures are record high
quarterly results.

1,000
15,000

Co.__

in the fund

1957, in the view of the manage¬
Corpora¬

period of expansion boost¬
ing igross national product to an

established 19 25

for

are

active

Investment

Ca terpillar Tractor Co

tion, the nation's largest diversi¬

During the second

Investors
list

was

of America

The fund reported shareholders
Feb. 28 numbered 35,797, near¬
ly 60% more than the 22,511 on
the same date a year ago.
Over
16,500 of the shareholders are add¬
ing regularly to their investments

ment of Tri-Continental

Business Ahead

further and said he

Prospects

See Good

mutual fund

yet

not

Randolph Forecast

Broadv/ay, New York 5, N. Y.

premature,

was
was

under securities regulations.

even

Fund Chiefs

Established 1930

state's

.35

National securities & research corp.

■

the

insurance companies should be permitted to sell variable

sure

annuities,

.05

Bond Series

representing

company,

The insurance spokesman ^vent

existence.

.18

Balanced Series

Associates

OWIM

Bought

Company
Aetna Life Insurance Co

ago.

has

Now

Aluminum Co.

Discussing the oiL and

the Connecticut Investment Bankers

as was

.30

Preferred StoW Series.

bill that would define a variable

interests, said it thought the bill

Dividend Series.

120

security,

as a

were:

PURCHASES

and
A

$.42

Income Series

decidedly in favor of

Association.

shareowners of record
in cash

were

invest¬

Changes in the fund's portfolio

during the quarter

tive Investment Program.

week, at the hearings in Hartford before the Connecticut

Last

Vago.

$10.04 per share

annuities, be permanently enjoined until it conforms to the Invest¬

now

higher than the $88,042,-

year

cember, 1956, is equal to $10.54
share, compared with $9.78 a

Columbia, the Securities and Exchange Commission has asked

This

28; 1957 total
$111,788,291, more

Net assets were
which,
capital gain dis¬
tribution of 50 cents paid in De¬
a

equal to

year

ment

Feb.

ment

per

Washington is settled.

ended

than 26%

sales

and

securities, other than U. S.
Government securities, during the
quarter
totalled
$9,062,215 and
$4,365,276 respectively.

reports for the three

assets

net

Variable Annuities

Although news on variable annuities is developing

Boenning & Co., Philadelphia,

has

Fund

Stock

By ROBERT R. RICH

(Special to The Financial Chronicle)

Purchases

Massachusetts Investors Growth

Co., Inc., 84 State St.

1924

Building

SAN FRANCISCO

Investment Dealer

the abovo.

Volume

185

Number

5624

The Commercial and Financial Chronicle

(1505)

quarters
old

of 1956

balanced

the

mutual

10-year-

fund.

National Investors Corp. has de-l

clared

first

6 cents

payable March 31

shareholders

33.

This

cents

second

record

increase

paid in

March
from

same

was

third

and

dividend

arriving

now

which

quarters of

1,950

New

cents

its

first

the

York

better

31.

stocks listed

and

the

American

this

record.

(adjusted for a two-forstock split on March 1, 1957)

one

declared.

Was

payable

The

March

trust certificates
close
3957.

;

■

of record

business

holders

the

March

21*

the

end

the

Second

War, mutual funds particu¬
investment companies
generally have been gaining in

and

popularity in Europe.
In

Fundamental Joins

Twenty-Five Year Club
With

dividend

come

84,100

tributions

shareholders

inception and begins its
25th consecutive year of dividend
payments.

figure

the

aggregate of $62,000,000 paid from
dividend

income

and

$48,000,000

from

security profits. The all-time

high for yearly distributions

came

homes

this

Vienna's

about

say

they

Credit-

of the

festations

mutual

funds

developing there:

are

"One

most

the

animating

have the

tatives

the

for

re¬

the

one

20B

Act

this

■ftThis

investment

fore

for

which

productive

has

been

Fall

countries,

introduced

late

provides

purposes,

introduced

other

was

the

well-recognized
of mobilizing sav¬

Austrian

last

and

Austria

year.

investors

with

solid and broadly-based type of

investment

involving
1

risk."

minimal

paying

share from

net

income,- payable

March

1957

25,

the

company

business

March 21,' 1957.®
;; a* J ten at > t'»<-'<

i/ftciteac/iute/fo

stock

«>•<

i/<i/ jCf'/e

Tru/fee

the

nation's

The
ihe

1957

and

(2)

tificate

stated

to be
has
nas

largest

cufrent income

value.

.Thus,

each dollar

Tri-Continental

Cor¬

stock is consid¬

erably higher than it would be if
owned

directly the
investment grade securities

same

which

Tri-Continental

owns.

I| This4'information is included in
the fourth annual edition of "TriContinental Corporation Common
Stock and the Monthly Investment

Interested in

MUTUAL FUNDS?

Plan,"

booklet "Which

copies

investors "and

We will be
you

free

booklet
tors

glad to send
prospectus-

describing Inves¬
Inc. This

Mutual,

balanced fund has

"than

500

diversified

holdings of investment
quality bonds, and both

preferred and

common

stocks selected with the
,

objectives of reasonable
return, preservation of

has

in demand to the extent of

4ter-million
age

firms

York

Investment

been
quar-

requested

investment

interested in

Stock

broker¬

the

New

Exchange's -Monthly
Plan.

;

The larger amount of assets that
the investor is able to hire and the

higher

return

obtained

are

ex¬

plained by the fact that Tri-Con¬
tinental
market

As an

common

stock

sells

price below its asset value.

example, thej booklet brings

out that the common, stock's

ket

price last Dec. 31

contrast to

mar¬

$27.25

was

share assets at

per

capital, and long-term

that date of $45.26,

appreciation possibilities

ing exercise of all warrants, would

For

investment basis.

your

prospectus-

have

been

Every

booklet

dollar

invested

common

DIVERSIFIED SERVICES, INC.
908

Investors

Minneapolis

Tri-

stock,

the

approximately

well-established

and

well-

selected

managers

have been working together
908

tinuously
began
years

since

operation
ago.

share of

net

com-

hand
nana,

one

dilute the

and

who

conj

Tri-Continental
more

than
-

subordinate further
5s

indicating

increase

debt dim
and
uem

mort-

senior

the
increase in
me 50%
00 /o inuedsein

fixed

charges

plan,

and

for

the

preceding
reason
it

which

nior bondholders
marked

for

"and^as
oT

the

"'other

plan offers a great
encouragement to hold-

new

the

important,
the
r
*

immediate

potential

available net income.
The

stbek would be

latter

given
tfa r e

arises from

the

pro¬

1956.

fact

preceding
,,

years.

only 10r%

net

of such

definitely
tirement

be
of

e.,

if there

"income

It is.thus difficult at the present
? set anythinS like a sound
yaluation ?n»the ,neW income de- of $10 million.
bgnture 5]/2S. While we know that
Dividend
calculations
inrihe
the C1^ag0 & North Western Agoing are based on 1,475,975
ff about fi^bTsnit/nf hJbr/with8 shares ,of common to be outstandaJ f^out 63 in spite of being with- ing under the proposed plan which
is f
calls .for the issuance of 667,004
?
relati^Svlighteradditional shares,, Obviously any
talLttl anH
Scat. t
valuation that is placed on this
ltall?.atl°n and represent a stock is a hope and a guess. This
..

"i16

r a n

relatively

lighter,

structure

Furthermore

bUUtlUie*
showing
control

overall

debt

the

certainly

good

over

guess,

ln\?u+eK
?' a,7
+u-0ri- ° 45-50
mif?
+nG ppresentontime
this issue.
At the
it would
also be
a

much
the

certificates

arrears

? arrears

the

present

lntle

the
u

inasmuch

stands to

eet

tnan

price

for

•

stock

common

than

certificates

market

nine

over

iatter

would be around 64. Frankly, this
must be on the high side to most
observers

the

not

difficult

tial

the

earnings

for

common

stock.

understand
to

common

It is

this

the

^poten¬
stock", what

1955

purchased something
over
500,000 shares of the common and
in view of the options since re¬
ported to have been granted to in¬

affiliated

with

both

the

Chicago, Great Western and
Kansas City, Southern^
The

the

imniications

wuh

Sum

would

the approxi.

new

would

the

junior obligation of the road, sub¬
ject to about $45.5 million fixed
interest
senior
mortgage
bonds
also

new

manairp

Kansas Lity bouthern.

certninlv

cert?Anly

cial to tthe
this> the
"Katy"_ left

.dim'

seem

the

aid

whii

."Katyf Aside from

President

the

Chicago

the

Great

Western with a most creditable
record of achievement,

slsting of 10% of the $1/4 million

Joins

available balance plus 25% of the

$737,987 dividend. This would be
roughly 25% of the assumed $l1/4
million

balance

certificates

available

not

would

CHICAGO, 111.

net.

Nickel

Harris,

come

impressively

larger

Harris, Upham

(Special to The Financial Chronicle)

now

—

H i 1 b

e r

connected

Upham & Co.,

La Salle Street.

135

t C.

with

South

was

formerly
Francis I. du Pont & Co.
.

„

$13.5 million ad¬

Not only would the
annual interest on

Hope!

"I believe that Mr. Beck's

further his

use

of union funds to

own

personal investments is highly im¬
proper, inexcusable and morally indefensible. The
use of union funds for
personal investments trans¬
cends the question of
legality
for it is
essentially
morality.
*

Jjc

matter of

Jjc

confident that the AFL-

CIO, working through the Ethi¬
cal

Practices

ship

and

united

Committee

with

support of the leader¬

membership

labor

movement,

the
will

the

meet

challenge of corrup¬
racketeering and will
these unsavory elements

and

purge
from its

ranks."

—

Walter

Walter P. Reuther

Reuther
We

can

4nly hope that Mr. Reuther's optimism
Whatever may
Mr. Beck and

will in the event prove warranted.
be the specific facts in the case of

million

the others associated with him and

2of gross revenues

annually,

whichever is greater,
would also be a prior deduction.
At the present level of less than
$75

the

the TCan<?nc Pitv Southern

obligations and equipment
trusts be a prior deduction from
earnings, but a capital fund of $2
or

^S^Ure^t

nnn

tion

the

5V2S

has

nnten

ement*" — ■

^fri
ffiS ^ a
?/'000.1c1?n"

debentures

and

future

^ '^Kansas ci,v Southern could
Jead to traffic arrangement benT

Sg?LShS«3da,^v"

the full

the

While the chances of early merger

*3'7 ndllion annual interest

"Katy," Mr. W.
N. Deramus III, is the son of Mir.
W. N. Deramus, President of the
Kansas City Southern.
The proposed $66,700,400 income

President

for

ment and its presumably close tie-

available earnings, it, foi in
one could imagine a $1%
mim' hfltanpp nf
"iiahi/J
providing for

allowance

some

made

maae_I0_r irie ^uture poten-

imPllcaixoPs 01 tne new ptanage-

portion of any balance

major

avaiiahip

the
,

with representation on the road's
board of the group which in July

terests

current

balahce would

attention

the

tial, particularly in the light of the

4.,

henefit

i•

The

However,

road's

stance,
after

view

•

!aller stanas to get tne benefit of
of

straining a point to place market
pric€ of about 58 for
higher initial valuation
N'

to the re¬
certificates as a

charge, but this amount
supplemented to the ex¬
tent of 25% of any dividend pay¬

favorable

cuir?DJ,

applied

the

current

?-++i

expenses.
Purely as equally unrealistic
appraisals' of
and
allowing for the 45 for the debentures and 10
for
higher potential interest rate on the
certificates, the evaluation for
the
proposed
"Katy" debenture the
"Katy" preferred "package"
a

prior

of1 the

true

man-

T,'™1"3"" market price of a little over nine
North Western is for "Katy" common. Accepting
signs
of
gaining this
figure, nevertheless, and using
„

a|em?nt of tke

—

would be

ments

ndS. n°c earned mis mqcn

w"en gr°ss income was $ii.z ,mn
lion. The following year was next
best with the corresponding figure

proportion if the balance of avail- with

interest—i.

mi'lionThis

in any
reCent year except 1952
when e-ross income was *11 2 mil-

diy

a matter oi lact,

matter

debenture

available

$1™%

aPProxi™aieiy ^ /4 rJi"J~on*

with

any

conditions,

benture7Tnterest' w^u'ld"*add"un*to
approximately

vision that if any earnings remain
after capital fund deduction nnd
is

somewhat

paid >«Katv" has not earned this much

vear

for the two

ThZ'pprtifiVn^

common

.mieresiA 9.nar&es is almost twice the $5.7 million
. not haY,e J1
p,ed 56 earn- gross income" of 1956 and the
since no Federal tax was

^ .V d

and, what is

road in

d"I?uai

though standing to be diluted by
some 84%,
the nominal value of
is not reduced

the

other

however, since even the assumed
$l1/4 million balance of available
net together with some
$3.7 mil¬
lion prior interest, a
$2 million
capital fund and $3.7 million de-

tax saving due to

the

stock

on.

stock. r-Al-

common

the interest

rejection by the

examiner.

the

the certificates would receive

this appears
fantastic under present

the creation of $3.7 million additional
annual
interest
charges

result"

The potential

a°JUb.imem os. Dy maicating tbe

72%

ferent

investment

cer¬

out

available

one

adjustment

these

sional

1,
(75

senior mortgage Dona

justment 5s.
$3.8 million

industries,

2032

retired

propose

known companies in about 35 dif¬

supervised by experienced profes¬

Building
2, Minn.

assum¬

notes, would buy

in the securities of
193

which,

$36.17.

Continental

booklet, just write:

Jan.

arrears

been
Deen suomittea.
submitted un
On

investor

does not

ers

the

nor
per

Actually this appears
the most "do-able" plan that

in
in

stock.

hand, the

common

Jan.

income; and (3)
mon

*161
$ioi

dated

$100

portions

deal

poration

offer
offer

Of
ot

arrears

due

years);

under present conditions

ap-

Under

and
in

net while the dividend paid would

gross income of the

com¬

a considerably larger amount
carefully selected, well-diversi¬

produce future

would
would

debentures

and

ICC

with

income

ICC

,the rate of return

Be-

become

a
"package" consisting of
$100 principal value of 5}£%

w£

earn

receive

nlan
plan

new
new

investment

closed-end

fied assets to

Act

can

?11

must

hires

invested

Incoiporated 1818

diversified

MaSffie

exchange for each of the 667,004
iiofnro
Am
shares
of
7%
cumulative

Each dollar invested in the
mon

holders

popularly

share.

per

circumstances,

represent 73.7%.

the income debentures approximately $5.8 million per year, or
slightly more, than the $5.7 million

ings
the- iast

proval, and be accepted by holders of at least 75%
of each class
of stock in the present case.

the

Work Hard
'

ductions prior

$lJ
in¬

28.5% of the balance of available

annually, making total de-

securitv of senior morteaffe bond-

Tri-Con Assets

certificates of record

trust

•*

per

and
and

common
common

fnd

plan

gage
gdge

renre^en-

Interstate -Commerce

the

holders

Fund

investment

cents

Life

dividend

said

the new
plan, tne
new
under Section

section

effective

the

Massachusetts

new

binding
on
parties concerned under this law,
the

DIVIDEND

the

stocks.

reorganization

(1)

form

modern

ings

through mutual funds.

both
Doth

the

known

introduction

were

increase

calculation

All

million

direc-

which

submitted

the

Sub-

of
the nrevions nlan
or tne
previous

ferred

saving

annrnvai

preferred

case
case

mani¬

recent

policy

March

capital
market
which has taken place in Austria

Life jBuud

one

investment

anstalt-Bankverein "Bulletin" had

which

Massachusetts

the

recently,

number

'♦

invest¬

years,

shares have risen

.>"•.•

Just

since

the fund's

$110,000,000

three

trust.

Fundamental

Investors, Inc., one of the nation's
largest mutual funds, reaches the
$110,000,000 mark for total dis¬

The

of* the

in the mail to

now

stockholders,

last

company

sharply in volume in England,

$2,928,500 quarterly in¬

the

ment

Missouri-Kansas Texas.

plan

World

larly

the

undo

column-on April 12 1956)
tors of the road released
to

Since

sequent to the withdrawal oi; the
previous plan (reviewed in this

Praises Funds

dividend

effort

ever-worsening
tangle
of
i ts
equity capital has been made by
the

Another

Stock

Austria Bank

dividend of 13 cents

By GERALD D. McKEEVER

The Katy Tries Another Plan

Of the

Exchanges, fewer than 25% equal

per

quarter ending March

A year ago a

these
same

case,

among
those companies
have paid dividends each

common

should

creased

Railroad Securities

quarter

or more.:.

net

million and the dividend

dividend

share from net investment income
for

able

$13,953,-

consecutive

for 25 years

year

Massachusetts Life Fund is pay¬
a

and

security profits.

payments, Fundamental Investors

paid in

last year.

ing

706 in

century

the first quarter of

2956, and the
the

1956, with $11,151,877 paid out
income dividends

quarter dividend of

million of gross revenue the

capital fund would be the flat $2

there
have

can

doubt

that

long been tolerated in

union in this country. The
tion is long since passed.

now

under fire,

"unsavory elements"
more

than

one

labor^

time for their elimina¬

The Commercial and Financial Chronicle

(1596)

The

Indications of Current

following statistical tabulations

latest week
week

Business Activity

month ended

production and other figures for th#

cover

that date,

Thursday, March 28, 1957

Dates shown in first column

month available.

or,

quotations,

cases or

either for the

are

of that date:

are as

Equivalent to—
Steel Ingots and castings (net tons)
oil

Crude
42

Ago

*53.5

•

7,790,600

Mar. 15

8,098,000

8,076,000

7,9.76,000

26,084,090
2,401,000
13,646,000
8,527,000

26,667,000

26,327,000
2,610.000

output (bills,)
*
Mar.
output (bbls.)—'Mar.
fuel oil output (bbis.)___
Mai.
Residual fuel oil output (bbls.)
Mar.
BtocSfs at refineries, bulk terminals, in transit, in pipe lines—
.

Kerosene

Distillate

15
15

—

7.515,400

7,812,850

2,431,000
13 328,000

8,578,000

8,682,600

205,782,000

202,254,000

195,941,000

19,701,000

20,711,000

22,552,000

17,959,000

Distillate fuel oil (bbls.) at

Mar. 15 \

79,599,000

83,331,000

91,385,000

67.386,000

Residual fuel oil

Mar. 15

36,233,000

36,383,000

35,812,000

25,038,000

(bbls.) at

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

—

683,226
646,959

672,386

.675.966

644,115

641,396

Total

Mar. 21

construction

Federal

$-412,284,000

$374,710,000

$501,318,000

148,097,000

*174,347,000

160,805,000

392.fe64.000

227,774,000
129,030,090

♦237,437,000

213,905,000

108.454,000

149,950,000

•162,856,000

94,646,000

Mar. 21

98,714,000

*87,487,000

51,049,000

13,808,090

COAL OUTPUT
Bituminous

9,700,000

9,750,000

9,204,006

.Mar. 16

445,000

428,000

376,000

430,000

-io8

102

105

SYSTEM—1947-49 AVERAGE

11,650,000

11,920,000

100

Mar. 16

ELECTRIC INSTITUTE:
Electric output (in 000 kwb.)

EDISON

INDUSTRIAL)

INC

DUN

—

METAL PRICES

Electrolytic

(E.

(St.

Zinc

__—

Aluminum

(New York)

—

199

aLL
a.

106,156.000

number

177

liabilities

141

liabilities

Total

1,1024

$16,105,000

$17,6471000

6,291,000

5,335,000

14,780,000

17,862,000

14,693,000

8,440,090

10,672,000

9,881,000

5.048,000*

4.086,000

1,920,000

$54,060,000

$49,139,00*

$548,000

$588,000

$41,863

$37,848

31,552

28,886

2,493,000

$65,406,000

—

•

1,148

$33,402,000-

■_

108

511

71'*

202

ei2

i.i46

—_

'} Construction liabilities

197

106
568
180

—

liabilities

300

5 670c

5.661c

5.173c

•

COMMERCIAL PAPER OUTSTANDING

208

301

ERAL

RESERVE

Feb.

5.670c
$64.56

*$64.56

$62.90

$59.04

$49.50

$53.33

$50.17

31.575c

31.600c

31.400c

46.500c

;•

BANK

(000's

NEW

THE

millions

and

FEDERAL

of- Jan.

30.175c

48.650c

Automobile

M'ar. 20

16.000c

Other

15.800c

31:

; ■

;

Mar. 20

14.000c

Mar. 20

13.560c

13.500c

25.000c

99.750c

98.875c

99.230c

14.000c

and

Personal

$40,916

14,436
-

7,938

loans.

J_
loans

9,618
-.—3,360

1.633

"7,184 "

6,230

10.311

8.962

4,085

7,487
*

1,793

| 7.199

credit

13,481

8,139.

1,772

loans

Single payment
Charge accounts

100.750C

31,298

goods'..„_l.

modernization

Noninstalment

22.500C

14,389

consumer

;'Repairs

„

Mar. 20

credit

16.000c

Mar. 20

RE-

intermediate term credit,

consumer .credit

Instalment

13.500c

$555,000

OUTSTANDING—BOARD

GOVERNORS

mated" short

29.775c

FED¬

—

YORK—

omitted)

SERVE SYSTEM—REVISED SERIES-^Esti-

29.125c

Mar

(primary pig. 99% ) at

Straits tin

service

TG.OOOc

158,257,000

•'

j.—.

„

number

Mar. 20

20,318,000
i

ii:

.—

10,568,006
52 776,000

2,349,000

BRADSTREET,

^r_..

167,150,000

liabi.'ities

'Total

(East St. Louis)

February;

Manuiacturer.s'

Retail

11,134,000

318

r' $48.17

Mar. 20

Louis).at

(delivered)

JZinc

number

Total

copper—

refinery at
Export refinery at
Lead (New York) at_.
Lead

Mar. 19
Mar. 19
Mar 19

Domestic

between

number

Commercial

J. QUOTATIONS):

A.M.

183.431,000

—A_————„

CONSUMER CREDIT

ton)

gross

11,723,000

Mar. 21

Pig iron (per gross ton)
(per

114,640,000

•

—

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

Sctiap steel

233,822,000

13,701,000

Commercial service liabilities
:: V;.-.

107

Mar. 23

(.COMMERCIAL AND

BRADSTREET,

$262,888,000

363,231,000

12.132,000

INDEX—FEDERAL RESERVE

DEPARTMENT STORE SALES

FAILURES

INC.—Month

Wholesale

10,180,060

shipped

ana

countries

Construction' number;

—Mar. 16

(tons)

anthracite

Pennsylvania

•••

$290,632,000

389.872.000

2,249,000

goods stored

Wholesale
Retail

1
$375,871,000

$307,130,000

BANK

28:

crt

Manufacturing' number

9?,:'

Mar. 21

—

(U. S. BUREAU OF MINES):
coal and lignite (tons)——

655,382

Mar. 21

and municipal

State

Based

685,983

Mar. 21

construction

Private

Public

construction

$162,107,000

$992,173,00081,011,501,000fc" $666,548,000

ENGINEERING

NEWS-RECORD:

exchange

Ago

$204,293,000

„

BUSINESS FAILURES—DUN

■

CONSTRUCTION

ENGINEERING

Doliar

foreign

freight loaded (number of cars)
Mar. 16
freight received from connections (no. of cars)—Maf. 16

Revenue

CIVIL

shipments

Month

$178,049,000

—

Domestic, warehouse

9,042,000

Feb.

Year

Month

OUT¬

RESERVE

FEDERAL

—

SYSTEM—Month

ACCEPTANCES

YORK—As

Latest

*3-

Domestic

12.910,000

205,539,000

;

GOVERNORS

thousands)

■Exports.

2,510,000
-

14,685,000

;

(in

DOLLAR

NEW

Imports

26,056.000

Mar. 15

(bbls.) at

February

STANDING

7,153,400
7,986,000
»

Mar. 15

(bbls.) at

Finished and unfinished gasoline

DEBITS—BOARD

2,452,000

2,456,000

*2,392,000

12,354,000

Mar. 31

(bbls. of
"
——Mar. 15

;

Gasoline

Kerosene

BANK

99.6

96.0

BANKERS'

(bbls.)

stills—dally average

runs

Week

THE FEDERAL RESERVE

average

each)

gallons

Crude

Year

condensate output—dally

and

Month

INSTITUTE:

PETROLEUM

AMERICAN

Latest
Week
192.0

'
Mar. 31

(percent of capacity)

steel operations

Indicated

INSTITUTE:

STEEL

AND

IRON

AMERICAN

3,421

2,920

4.702

3.Wil

2,188

2,081

Service

MOODY'S BOND PRICES DAILY AVERAGES:
U. 8.

.Mar. 26

Government Bonds

Mar. 26

Average corporate

Baa

Public

Group

Utilities

Group.

U. S.

98.38

101.64

110.70

99.20

99.04

109.24

.Mar. 26

96.23

107.27

Mar. 26

89.92

89.78

.Mar. 26

95.32

95.47

Mar. 26

96.85

96.69

101.31

97,18

89.23

95.32

106.21

96.69

107.80

97 16

97.62

;

3.21

.Mar. 26

Bonds

•

3.27

3.25

2194

3.97

3.98

3.32

3.67

3.65

3.13

3.96

.Mar. 26

3.67

.Mar. 26

3.80

3.81

.Mar. 26

3.96

3.99

3.32

4.42"'

4.43

4.47

3.61

;
■

—T

Baa

•

Public

Mar. 26

-—Mar. 26
Mar. 26
Mar. 26

Group

Utilities

Industrials

Group

—,

•

4.05

4.04

3.95.-

3.96

3.89

3.90

■

■■

4.05

410.7

411.4

Mar. 26

MOODY'S COMMODITY INDEX

-V

3.93

3.28

Production

Mar. 16
Mar. 16

(tons)

ROUND-LOT

—--

L\
—I

100

TRANSACTIONS

ACCOUNT

FOR

Mar. 16
Mar. 16
Mar. 22

Other

255,749

302,893

219,422

288,531.

280,311

280,060,

„.

Total sales

Other transactions initiated
Total

the

Short

dar.

«,

443,293

478,942

389,413

570,946

110.70

110.77

111.24

107.57

Initiated

Off

Other

933,960

829,220

1.020,160

1,566,540

1,026,580

1,235,280

1,957,990

207,600

163,000

273,130

337,270

Mar.

33,100

46,400

30,100

50,250

.Mar.

232.580

213,930

245,950

271,850

M'ar.

265,680

260,330

276,050

322,140

112.3

112.0

111.7

138.9

136.1

129.5

Housefurnishings

104.0

104.1

102.0

Household

125.4

124.3

121.2

and

electricity
fuels and fiiel

purchases

Short

sales

Other

„

and

and'

Footwear

•

care

Personal

care;

Reading

ard

Weekly
All

Hcurs—

All

808,028

Durable goods

933,348

Nondurable

1,763,510

1,420,914

Mar.

357.040

f><"7 09O

Mar.

1,564,536

1,419,5,95

1,727,158

2,646,458

Mar.

1,933,376

1,747,905

2,084,198

3,213,476

369,340

1,883,111

328,310

2,817.502

Earrings—

933,017

1,055,443

6,769

9,404

9,390

Customers'

other sales

Mar.

797,349

670,094

868,085

1,270,722

Mar.

$38,759,855

$31,762,434

$42,075,870

-$64,556,694

185,560

153,910

191,930

Dollar value
RbUnd-lot

sales by dealers—
Number of shares—Total sales

Short sales
Other sales

-ERNORS

191.936

153,910

185,560

Round-lot purchases by dealers—
shares

Month

1,608.764

447,560

$81,105,948

"...

384,130

540,750

436,750

530,600

Mar.

8,390,410

7.057,470

8,978.060

14,103,750

Mar.

8,885,140

7.494,220

9,508,660

14,824,300

commodities

other then farm and foods

116.9

112.8

Mar. 19

88.9

*88.7

88.5

87.8

Mar. 19

103.9

83.9

82.2

<80.7

72.4

Mar. 19

125.3

*125.4

125.4

120.7

*103.7

103.7

Revised

figure.

fllncludes 738,000 barrels of foreign crude

runs.

one-half cent

pound.

SBased

basis

new

annual

orders

centers

where

not

capacity Gf
reported

133;459,150 tons as
since introduciioii of

-$1.93

<2.17
-

146

$29,978

Feb

CLASS

;''

<$29,92^

$26,317

*.21,430

19,606

$51,442

♦$51,355

$45,923

"*28,707

27,289

-2.8,688

" :

21,464

BRITAIN

GREAT

144

..!

dollars):

LTD.—Month

143

146

SERIES—

—

1 75

2.95
-

,145 "

1-86

AND SALES

NEW

(millions

<■

«.

£28,059,000

£65,169,000

£19.134,000

$85,721,472

$87,759,591

$78,527 831

December:

operating
inrcpae

—1_

income
:

—

income
deductions

available

after

income__

fixed
charges—
charges—
'.
5
hL—.ni
1
ii

for

fixed

'deductions

from

47,573,207

19,171,943

56.815 282

133,294,779

106,931,534

135,343 113

5,659,907

3,444,700

8.638 780

127,634,872

103.486,834

126,704 323

100,181,075

72,831,446

97,629, 3S2

—

•4,805,410

4,777,420

4,735 447

95.375,665

68,054,026

92.893 945

Depreciation (way & structure & equipment)

46,400,384

46.516,480

45,419 ,167

16,585,346

31,436,533

5,352 834

22,335,099
2,152.457

32.331,570

53,314.171

4,535,973

23,845,354

2.38

4.36

income

taxes

Dividend
On

99.8

39-8

<2.05

(Interstate Commerce Commission)-—

appropriations:

common

Ratio

REC1
'

OF-U.-

MARKET

fixed

charges.

TRANSACTIONS

GUARANTEED

A.—Month

•

4.65

DI-

14EUimiTlES

February:

-Net

Net

stock

income

AND

stock

On0 preferred
■-

TREASURY
JW, 1; lS67r "te ftgaUist Jan. 1, 1956 "basis of 126,365v094) tons.
iWoptbly Investment Plan. JPrime Western Zinc sold on delivered

147

—

Federal/ income
Mar. 19

;

feu.1.

Income
Net

Commodity Groups-

41.0'

*39.1

RESERVE

x.Amtii

•

Income

Other

•

40.5

' 4( .8

;

_>_J.

ISSUES

Miscellaneous

715,550

69.65

*40.1

x.__

railway

Other

494,730

;

BANK

Month mf

NAM

FEDERAL

;

—

RYS.

Net

1.86

December

CAPITAL

84.05

*72.73^

2.J18

SELECTED INCOME ITEMS

612,360

Mar.

$2.05

,i_-

THE

$78 71

-*88.54

39 2

——

COMMERCE)

Sales

313(770

100):

commodities

40.9

Total ;•

NEW

313,770

Total

products
Processed foods

120.8

•$82,21

72.91

——

Nondurables

1 280.112

round-lot sales—

Total sales

—

89.16

goods

Inventories—,
Durables '

SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):v
-

Farm

107v3

123.3

•10.2

u....—

TOTAL ROUND-LOT STOCK

All

118.5

109 3

Seasonally adjusted
Unadjusted
_1_

MIDLAND

„

•••■

manufacturing —J

(.DEPT.
Mar.

_Mur.

9,225

DEPT.

3 30,7

121.8
°.

$82 4.1
-

•

MANUFACTURERS' INVENTORIES

"f,

••.

INDUSTRIAL PRODUCTION—BOARD OF GOV-

Mar.

122.1

117t0

■

Durabie .goods Li.
Nondurable -goods

•

5,72,868

877,489

—

170.3

134.7

manufacturing

461,048

676,863

123.3

• ■

•

••

460,995

$42,531,243

(1947-49

126.8

174.1

135.3

' V

v—

376,445

DEPT.

goods

513,806

Mar.

IIOURS^-WEEKLY

AND

goods

397,996

Mar.

807,074

—

133.1

'''J" '

r«r

manufacturing

Nondurable

All

$51,821,805

LABOR

90.7

109.9

earnings—

125,320

WHOLESALE PRICES, NEW SERIES

120.4

92.2

123.8

ESTIMATE —U.

111,820

Mar.

„

97.9

126.4

91.9

LABOR—;Month of February:

84,550

short sales

services—.;

and

115,810

Customers'

sales

109.0

recreation

goods

Mar.

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Other

104.1

108.6 "

126.7

133.6

__%_c

____

Hourly

1,242,434
$59,541,934

Short sales

131.4

100,3;

123.9

AVERAGE

Total

•

641,542

—

Dollar value

120.6

107.0

98.9

174.9

..Medical

Other

108.4

girls'

Piihlic

382,981

SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t

Number

boys'

Women's

297,654

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK

112.8

437,800

sales

Number of

106.4

Mar.

Total sales

EXCHANGE

oil:.

operation

Total round-lot transactions for account of members—
Total

107.3

112.6

Private

sales
.

391,450

1,134,390

__—

Total sales

1,868,690

215,120

Mar.

purchases

Short sales

1,227,000

197,360

floor—

the

134.2

home

FACTORY EARNINGS

960,260

220,430

_Mar.

transactions

Total

123.5

134.2

Durable

...

Othem sales

Other

sales

Total sales

114.2

123.8

foods

apparel
Transportation

lioor—

purchases

112.7

Cther

Men's

265,047

93.3

111.3
117.4

vegetables

Apparel

281,57-

107.5

111.2

Gas

412,3

1,118,110

Aar.

sales

.98.0

109.2
123.9

116.9

and

—

'ii- 99.0

114.5

MEM¬

BERS, "EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks in which registered—
Total purchases
t
Mar.
Short sales

127.4

products-

Fruits

Solid

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE

128.0

bakery

Other

Percentage of activity
Unfih«#brders (tons) at end of period1949

112.9

111.2

Rent

N "

118.0

112.8
111.1

Housing

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

118.2

home

Dairy

3.38
3.29

4
^

praduots_v--sv.
Meats, poultry and fish

3.21

3.96

411.7

1947-40'= 1(

—

January;

Cereals-aaid

.Mar. 26

Aaa

Railroad

Food

107.98

INDEX

items

AVERAGES:

DAILY

Average corporate
Aa

Month
All

102 30

PRICE

CONSUMER

107.27

-i.

96.69

.Mar. 26

Government

96.54

2,173

94.27

99.20

Industrials Group
MOODY'S BOND YIELD

96:63>

96.69

Railroad

101.31

Mar. 26

90.88

.Mar. 26

Aaa
Aa

91.55

credit

$6,799,500

—.—:—

purchases

.—

$72,616,300

$14,305,500

Volume

Number 5624

185-

from

page

Continued

The Diminishing Burden
,
Oi Consumer Credit
initial

.am

Trend

general economic rather than -intjividual risk considerations may

would

that

rest of the

the

•to

ticularly
exist,

par¬

but

velopments

pressures

1959.

happen before then.
Retail sales thus far this
have held up rather

sumer

than

about $2.50.
earned for the
six-month period ended June 30.
to

earnings

The company has a

ital

structure

with

•Inc.

Murray Hill, N. J*

Electrical and
electronic

;

products

Modern furniture

«iiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiniiniiiiimiiiiiiiiiii'iiiii''Hiiiiiiii"'^

CONSOLIDATED

simple cap¬

NATURAL GAS

long-term

debt outstanding and

->
_

of Sales

COMPANY

only 748,722

Rockefeller Plaza

" ^

•

20, N. Y.

New York

Dividend No.

than

6.5

1952

3.8

lar

4.3

and

>(471/2#)
able

tMs latter figure,
•

Pre-tax

to stock¬
the close

1957.

April" 15,

R. E. Palmer, Secretary

March 21, 1957

jrilllliililililliiiiiliiiiiiiiiiiiiiiiiiiiiliiimiiiiiiiiiiiiiiiiiiiiiilliiliiiiiiiiirt

INTERNATIONA!,
HARVESTER

■

COMPANY
The Directors of
er

averaged

Dividends on an adjusted basis
$295,000
during *' the
1948-50 have been increased steadily from
increase
if the current / lull > in previously • with
Great Western period, reached $4,739,000 ($3.10 27c paid in 1952 to the current
per
share after taxes) in fiscal well covered $1 rate which was
less
does not lead directly Securities.
:
1956. They are expected to drop
intoItidecline. Last year's increase
established following a two-forto $3,800,000 ($2.50 p.s.) this year
in
instalment * debt ^outstanding
Hemphill, Noyes Adds - but may well exceed $7,1)00,000 one split in late 1955. Two five
was $3.2-billion
while in 1955 it
per
cent stock dividends were
(Special to The Financial sChronicls)
rose to $6.3-billion.
(almost $5 p.s.) in fiscal 1958
:
paid in 1953.
BEVERLY HILLS, Calif.—
As any deflationary period
is
The decrease in profits expected
Officers and directors have a
bound to cause hesitation in in- Simeon S. Jacobs has been added
in the 1957 fiscal year is atiribut- substantial stock interest in the
stalment credit demand, competi- to tbe staff of Hemphill, Noy
le
to
the six
months
ended company and there is a stock
tion for the available business is Co., 9478 Santa Monica Boulevkcd
ecember 31« when the company
option plan in effect for key exec¬
likely to become still keener. This Mr. Jacobs was previously witli earned
only 31 cents as compared utives.
may result in an easing of terms.
Daniel Reeves & Co.
with $1.92 for the same period
The company has an aggressive
It is doubtful, however, whether
last
year.
During
this
period
'such
policies
would
stimulate
With First California
Standard carried out one of the management, a proven Record of
additional instalment business if
(Special to the financial Chronicle)
greatest tooling changes in their growth and attractive prospects
the public hopes for, pr expects,
FRESNO, Calif. — George G. history as many automobile man- f0r
future
lower prices.
Bodeen is nbw with First Cali- ufacturers made complete model
A
.
' e.^rv%a'
aoiod
There
is
nothing

SlftarilyVrSUrmg
thu next^ fT & Co., Securities Brokers, 9640
months.
There^maybe a moderate ganta Monica Boulevard. He was

record

business

.....

ing.
which

net

15, .1957

May
of

holders

mercial banks which^ will^ permit

(Special to The Financial Chronicle)

Company, pay¬

recently effected with three com-

year ended June 30, will exceed borrowings up to $3,000,000. These
$40,000,000 for, the fiscal year
may be converted at the company
to end June 30, 1957 and are ex¬
option to a five-year term loan.
pected to reach $50,000,000 in fis¬
Except for an offering of 30,000
cal 1958. January sajes were al¬
shares
to
stockholders in 1952,
ready at an annual rate equal to
there has been no equity financ¬

With Boren Co.

One-Half
Cents '
on the capi¬

company's accelerating growth, a
revolving credit agreement was

averaged $14,900,000 dur¬

ing the three year period 1948-50.
They were $35,300,000 in the fiscal
'

Per

tal stock of the

directors

board of

this day declared a regu«.
quarterly dividend of Forty-

Sevesp

paid out in fiscal 1956. To provide
additional seurces of funds for the

4.1

1949

has

$3 of sales per $l,of market

Expansion in recent years has
chiefly financed internally
and as a result, the dividend pay¬
out, has been conservative. Only
23% of earnings was paid out in,v
the 1950-55 period — 32% was

10.0

j?he

been

6.9

1953

Sales

to consumer instalment financing

con¬

14.9

1951

ftraint and moral suasion to solve
theTliese
Problems
in this area,
problems are not peculiar

well. Never¬

13.4

1955;—

il950

failure

good sales-per$50 — more

over

value.

1956___

1954

only then—need we admit the
of general monetary re-

but

...

Pre-Tax Profits as Percentage

get to a point when they

provides

ratio

standards of living to
must proceed within

last year,.
i
-i
BEVERLY HILLS, Calif.—Paul
up m.
sales pick up.
McLaughlinvis now with Boren

automobile

unless

years:

did

it
u-i

cfedit, just the same

quite clearly fail to do so, then—

year

unlikely that

higher

credit will rise much more

1957

26th.

Earnings for the six months to
probably exceed

Standard's sales have grown
rapidly and its profits have kept
pace. .The company is profit-margin minded and all expenses are

this limitation.

of things can-

Lots

May 15th to shareholders

end June 30 will

dy- i.

any

consumers

actually may not get
until sometime in 1958

under way

theless,

mailed

of record April

Last year $1.18 was

tions-

con.

potential in merchandising
distribution techniques can

period of deflationary pressures.
Although the timing of any poten¬
tial decline still is
highly un¬

(Capital .expenditures for/the
1956 and 1957 fiscal years are
approximately $2 million.)

year's

techniques /for mass distribution
and the accompanying availability

markedly.
probably approaching a

even

8 million cars

by 1960 should

cars

financed

inflationary

Lately,

talked about for the

fPr0vidf
® s+f011^ industry i.baek- §2 per share to bring the full
ground for the company S opera- vpnr'c euarninorQ
ahnnt
Fin

investment

have been diminishing

certain,

other type of. demand for
fuhds, ought not to be*
at the price of general
inflation. The jdevelopment of new.

for

economic

conditions as well.

Checks will be

formulating in¬
stalment credit terms to keep well
informed not only on credit de¬

are

instalment credit as

Consumer

those in charge of

hardly be overestimated; but I do
think
we
have
become
too

well as

investment.
7
makes it
mandatory

share has been declared

by Daystrom, Inc.

controlled by the budgets. Pre-tax shares of common (book value is
at what other demands alarmist as to its broad economic margins have shown the following currently $14.50 p.s.) outstanding.
the supply of savings
impact on stabilization. ,
•
:<
sharp improvement "in recent This relatively small number of.

available for consumer as

the

namic.

for business

This

again
-

the role

and

high

per year are

been demon- (0f 7 million

and
.,

sumer

Estimates

convinced

Michigan yniyersity^Rejeare

happening

economy;

time

strated

in 1955. In short, we

was

have to look at what is

duction difficulties and were delayed in achieving a rapid build

buys..on,tearly 1960's by many, experts and
pretty sound position ;an average annual car production

This" has

all.

after

the extent

the banks to

quality. Standard Products' record
certainly adds statistical proof to

regular quarterly dividend

of 30c per

who

consumer

time is in

are

getting too lax if we are in a
period of shortage of savings and
if in such a period consumer instalment credit is being financed
through

the

that

terms

that

say

probably that I am

practices.

The Security I Like Best

decisions,

of interference' witn free

reliable guides to the
of
instalment
credit

soundness

prove more

page

these remarks as the sales and up6 of 1957 assemblies. Standard
the buyer and' the seller get to- earnings figures shown below, wul also had heavy non-recurring exgether on terms; I do not feel that indicate.
penses in connection with the
either needs ai; guardian angel to
Despite year to year fluctua- completion of two new plants in
protect him against his owh folly, tions in the number of cars built, Fullerton, California and Windsor,
One of the<reasons I feel this /there is general agreement upon Ontario as well as additions to
way, aside from andnborn dislike
the industry's dynamic future, two other installations,

overall point of view,
inclined to the view that

From

from

let

By and large; I am content to

are

the field.

Relation to Business

VII.

..I

who

those

for

losses

new

NOTICES

DIVIDEND

CcrrCtinued

(1507)

The Commercial and Financial Chronicle

International Harvest*

Company have declared quarterly
No. 168 of fifty cents (50p)

dividend

share on the common stock pay¬
April 15, 1957, to stockholders of
record at the close of business "on

per

able

March 15,

$57.
EGER, Secretary

GERARD J.

•

with
harder competition for a smaller
amount of available business, as
long as it does not lead to unsound
business practices. .This is some¬
thing the banks will have to watch

•

„

from here

VIIL

fornia

Company,

Statement of Earnings —1946 to

Calif.—Frederick

are

Richardson has become connected

Conclusion

taking

Year Ended

Net

June 30

Sales

is certain. Con¬
sumer credit has become such an
-integral part of the American way
of life that it is bound to keep
on growing as the economy itself
grows. It is quite likely, however,
that the increase over the next 10
years

will. not

the

match

post

decade.

„

This

growth

not

likely

rewards

and

with /Edward

Company;
Mr.

548

Hodson

South

has

been

$2,309

$3.10

$1.00

14.9

2,420

3.28

.45

887

1.22

Spring
in-the

•

6.9

6.5

•',772

1.07

366

.51

877

1.33

.27

462

.70

.05

469

.71

(289)

(.44)

233

.35

>19

.03

3952

20,818

794

3.8

,1951

23,738

2,372

10.0

17,470

724

4.1

14,485

630

4.3

12,813

(458)

11,525

378

•Plus

10%

3.3

(104)

.6,790

—

PACIFIC

—

•
:•

HNANCE

—

CORPORATION

DIVIDEND NOTICE
On March

'
DIVIDEND

19., 1957. the

Board of Directors

NOTICE

regular quarterly

formerly with Aronson & Co.

declared

dividends

Preferred Stock of this

corporation, payable to
stockholders of record

Sydney Stroud Joins

April

(Special to The Financial Chronicle)
•

system

BEVERLY HILLS, Cal.—Sydney
H. Stroud has become associated

system

with

RUBBER

1957, as follows:
Date

COMPANY

COMMON AND PREFERRED

Rate

Pay-

Per

able

5-1-57

$1.25

Preferred Stock,
S100 par

Dempsey-Tegeler^ Co., 464

value

5% Series

DIVIDENDS

preferred Stock,

Stroud

?was formerly local manager ior,
instalment ]viorgan & Co.-for many years. •.
lending practices is that they re¬
flect desirable innovations! tech¬
With Rogers & Co. „
niques in distribution.- If at times
(Special to The Financial Chronicle)
I have felt some concern, it has
OAKLAND,- Calif. — George S.
been mainly over the fact that
Roderick is now with Rogers &
these
changes
sometimes
mayCo., 436 14th Street.
have been pushed a bit too fast.

15,

GOODALL

Dempsey-Tegeler & Co.

Drive. Sir.

—

deficit.

vestment business for many years

North Bedford

K. C. Christbnsrn, Treasurer

.08"

St.

in-

,27

in stock.

) Indicates

(

;

.33

1,934

The Board of Directors has declared

recent and

13.4

5,020

2,441

1946—:—

Dividend

$4,739

Cronin

Earned

28,127

1948

ANGELES, Calif.—Doug¬
lass M. Hodson has become assp-

Income

37,782

1949

capital stock. This idividend will -J»e
paid by check on A>ril 15., 1957, AO
common
stockholders of record at tnq,
close of business on March 25,; |91v7.
,

1953

-1947

LOS

bumps.

penalties.

My own reaction to
current
changes
in

13,

San Francisco. California

1954_—_

1950--

of Directors,on March

1957, declared a cash dividend for the
&rst quarter of the year of 60 cents per
share
upon
the Company's, common

Actually,
our
economic system
could not function without mod¬
erate fluctuations. These are im¬

■

Taxes

33,609

1955__:_

The Board

Per Share

Net

Inc. Before

upward,

plicit in a free enterprise
that must be based on a

(Special to The Financial Chronic^)

was

proceed in a,straight line
however. There
will be

Edward Cronin Adds

ciated

Dividend No. J 65

Common Stock

,$35,363

1956-;

stock

only'thing that

1956

(000's Omitted)

with Shields & Co., 145 West Gar-*
of the land Avenue. He was formerly,
economics and
the outlook . for with Powell, Johnson & Powell,
consumer credit today, one thing
inc>
is certain—and that is perhaps the
As

lowing table.

producers met pro-

car

(Special tc The Financial Chronicle)
FRESNO,

anc* earnings is shown,in the fol-

.volved

Joins Shields Staff

in.

A ten-year summary of sales

changes. This tooling program in-,
an outlay of $2 million. In

Incorporated,

of America Building.

addition,

DIVIDEND NOTICE

wrong

Bank

Pacific Gas aid Electric Co.

$25 par value
4%% Sinking
fund Series
5-1-57

^quarterly-dividend of

Stock outstanding and
regular semi-annual dividend of.$2.50 per share on the.5%

$.125 per share on.all Common
-

•

Preferred Stock, both payable May 15,1957 to
of record at the close of

$0^9%

stockholders

business May 1,1957.
H. G. DUSCH

». c.

Reynolds,

Secretary

March 26, 1957

•-

Secretary & Treaturer
•

•

• •••••

tee

e •

(1508)

The Commercial and Financial Chronicle

•

Thursday, March 28, lit

genious that an even educate1!
public has little grasp of th^
opportunities offered.

BUSINESS BUZZ
on

After

•

all, Eisenhower did not

at his best in the net cut
expen¬

ditures

Behind - the - Scene Interpretations
from the Nation'*

You

Capital

highest"

net

time

the

for

all

to come to the aid

dollar

cal year

of their

country by winning, resounding
apparent victories in the news¬
•

headlines for economy in
government
whilst evading
direct engagement with the en¬
paper

million

later

years.

fiscal

1959

and

:7/•"'■'

forces

public

/ travagance.
There

well

that

sizeable institu-

some

stance, reported in

one

"Administration

ting

headline; /

Trims

the

March

ting

(?)

these

to reveal

economies.

This

dered

spending"

the White

'said.
It

develops

"trims

$200

budget,"
facts

million

reported

by
the

the

that

HHFA
its

from

was more or

less

the„

The

press.

give

case

different

impression

impact of

news

from

to^ build

these

the

headlines.

such

Cole

said

$385

had

been

loans

for

gift in fact to

concealed behind

National

eral

ciation,

Mortgage

million

JJ25

The
if

asked

the

Under

its

housing

subsidies,

Government

has

the

kit

fiscal

the

Federal

horse

nasty

very

full

of water

that

loans

housing

the

not

stand

Congress

their

with

For

1957

the

rectly loaned the funds
The

This

this

both

This

$100-million

however, is not

priations.

;;
v

—

,: •;
i

Then

FNMA

private

agency

temporary

period

advances the money until it is
repaid through the Treasury, via
As
it

-were

...

•

million,
to

prob¬

the

sums

authorization, \ ev^en

allowed

stand,

In
a

write

like*

Mr.

both the

want

with

the

any

personal

contact

views.} \

bonds Series E, due

100.01

level

alarmed

spending,

officials

about

and

outside

the

Republican"

top

rank

100

for

that the sentiment for economy
still has not been tested against
the

fire

special

Until it is demonstrated

groups.

that

it is

easy

payment loan,

ployee

interest

popular tp cut off an

off

the

coupon

submitted

1972

bid

the

Clark,

Rothschild
Co.:

Co.;

offering

Ddvine

Carl

Co.;

grou 7

Co.;

L. 7
Dod)

Thalmann

Co.; Baxter &

Company; Amer"

Securities

Corporation; Ha>

can

Loeb, Rhoades

Ladenburg,

sever an em¬

payroll, refrain

irt^

the

Included
are:

193^-1972,

the State of Ohio.

however,

Eastma,

bonds, resulting 1:
interest cost of 2.9063% t1-

net

2.90%

group

Eisenhower Administration.

problem,

Securities & Co. T»

elusive, at prices ranging fronw*
yield of 2% to a dollar; priee &/

long

been

Union

Being

offering $32,000,000 State of Ohio
6%, 5%, 272%, 23/4%, and
Major Thoroughfare Construction

The

"modern

specifically proposes to
boost the new "secondary mar¬
ket" outlays
by $1 billion, of
which the Treasury
admittedly
and directly will
provide $700
•million. :
*
^

group( headdd

D'Uon.

officials, will show is not
Many Congressmen

have

the

those

economy.

case.

have

Eisen¬

own

$32 Million Bonds of

Administra¬

and

This,

probably will

—

how

the wooDover the eyes of

■

sustained

the "Chronicle's"

Offered lo Investors

Their

den, Stone & Co.; Shearson, Hair

from

building
project, and so
bers

public

on,

Congress

works

mill

mem¬

Incorporated;

both.

Admin¬

and

■

istration

Congress for the moment voted
only half this sum, or $500 mil¬
lion
rest

—

later

connive

officials
in

going

are

achieving

economy

in headline victories which will

likely to vote the

part

its

broad

have

comparatively, little

sub¬

stantive accomplishment to back
them.
7.
v

Co.;

haus &

Co.;

housing bill. Even this $500 mil¬

than the

requested

.In

his 1958 budget, the

balances

Stroud &
,

Company,
\

Craigie & Co.; Glicken-

Lembo; Spencer Trask &

Wallace,

Geruldsen

-Co;

Field, Richards & Co.; Freeman &

lion
the
Mr.

$300

"cutf in

million
other

housing aids

Cole announced with

than

yields

7 on these
FNMA-acquired loans
..attractive,
the
Treasury will

■

....

Opportunities Manifold

Co.; Hayden, Miller & Co.; King,

the

market"

operates

for

have

some

genuine

"cut"

appropriations and other
spending authorizations without

simply

manifold

and

in¬

Co.;

private

money.

Co;

TRADING MARKETS
Botany Mills
Campbell Co. Com.
Fashion Park

United States Envelope

Morgan Engineering

nor¬

loans

at¬

irfstitu,

market,"

Dempsey-Tegeler &

Indian Head Mills

which

power

Incorporated; New

Cutter, Plummer & Bennett.

A. 5.

so-called
*

Co.,

in fact reducing them much, are

jtheory, FNMA is operating

"secondary

Quirk

York Hanseatic
Corporation; Rand

The opportunities to seemingly

some

fanfare. And unless
money rates
fall so far as to make the

.•

would

mal VA and FKA-backed

which

constituents

there

tract

FNMA,-/,

re¬
;

and may or
may not coincide wi

furthered

crimping of these heav¬
benefits.

"secondary

tional

made

Secondary Market

hocus pocus procedure of
using
a

money.

will vote to

you

expenditures!"

State of Ohio

who

"man¬

liquidation" mort¬

$101

Congress are heedless
of the economy sentiment and
cynically were laughing up their
sleeves while they were pulling

holdings aggregated $2,509
until
Feb.
28,
1957,

comparable

being

FHA

for

words,

other words, to disburse
money
for such housing through ' the

which

enly

is only a cut-back

some

undisbursed

cut in appro-

"give special support" to

and

Ad-

for

would

the

economy has ahead.
It might appear from this re¬
tion

its

From June

FNMA's

report

;

"cutback,"

7 in authorizations for FNMA
-

not

asking. In any case
the $425 million requested
plus

when

dicated heretofore

$250

the

from

farming opyear, and I will sup*
my

being achieved, is typical of the
extremely difficult road
true

port that

that

all

Against this $200 million "cut"
in authorizations—which as in¬

of the

some

segregate

hower

much dr

"secondary

distinct and separate ac¬

only

the

th^ tendency
of Congress has been to
grant at

mean

Authorizations

decree

for

sons

President apparently decided to
get in on the political credit for

the

Are

voted

dis¬

sold. For

provided

limited

"economy"

paid to curtail debt by the per¬
who owed the government

$200 million
$300 million;'$100 mil-

making

socialism and

subsidy.

•

$100 mil¬

renewal

! Administration

people who have time and pa-,
tience to study it from
seeing
that

but

.•

asked

other

least

cumbersome

? machinery beclouds all

law

should

1956,

ably

Adminis-,

for

Congress

available.

political effect, however,

different.

asked

brban

by- his

gage credit in the first place.

the

payment
on

{This column is intended to r
fleet the "behind the scene" inte,
pretation from the nation's Capii

in the headlines without in fact

FNMA had reduced its portfolio

of which could be
spent
when the President
wished, and

mort- '

the

This

million,

! lion

Treasury, di-^

gage

1956,
v

1956

,.7

and got

uneco¬

30.

ministration, asked for and got
from Congress for 1956
$200 mil¬
lion of
authorization; for fiscal

projects.
In so doing,
FNMA is nothing but a window
of the Treasury.
The economic
effect is identical
to
what
it
would

but

For

nomic

million,

tolessing gives them "special as¬
sistance" through
the Federal

j?age" for these perhaps

19.57

lion'

Administration

Mortgage Association.
FNMA, using direct Treasury
money, buys the "insured mort-

fiscal

Typifies Problem

are

operating

counting ^operation.

authorizations for college housing loans and got $200 million;
for

ean-

National

voted for

tration asked for $200 million

feet,

own

"it

Administration

was

out

money

are

alleged

an.

agement and

Eisenhower

nevertheless.

retained,

by the time
home this sum¬
are,

goes

$250 million

operatives, housing for the elderly, and others.
\
Since these "investments"

been

up holding the bag for a
large share if not most of therp..

place from which

after

over-glorify

end

part
mar¬

mortgage portfolio acquired up.
to November 1954 and liquidate

For both fiscals 1956 and 1957;

tary personnel on military bases,
especially
liberal
terms" for
housing built by non-profit co¬

have

they

7 7

worked

acquired

once

market"

other

will

has

easily put (and

instance,

mer.

mili¬

tendency
their positions!"

place where mortgages

liens

own

for

have

notes.

own

bursed ) than

hand, there is
little, likelihood that these

Congress

These

100%

built

its

market
a

asked for NO FNMA special as¬
sistance authorizations. * Somg

years

Vetoed

tract private

include

ary

of.

feet and, at least regularly, at¬

cost

$425

authorizations

the

investment.

just

In fact, however, this second-',

and

the

"cuts"

byjsuid large

they cannot stancUbn their
^

million to

re¬

1959 and later years.,

modest

and

buggy days would be called

ket

FNMA

base for

that, and not before, there will
be genuine
economy."
:

people

raising its money in
through direct resort to the

Treasury disbursements only in

"FHAO-insured" mortgage loans
that

number

$625

the

loans

"Cuts" Will

multifarious

^Some

all these "cuts"

duce

When

municipality :
fancy name.

would

cut

pay

flC©|

grants for all
three categories,, and very gen-,
erally would if sustained reduce

budget

document for fiscal 1958.

from

new

college housing, and $75 million
less for "capital grants" for ur•••;. ban renewal.
*
Al^ these are less
as
compared- with
what
the
President

&Qfft

$200 Million:

stuck

million

for

Total

effect

they

duce

Asso¬

less

Ployee—"We have had raises at
least every two years in our
pay
since War II: I will take a
15%

;

and

"Cuts"

sistance support" under the Fedv

"capital (grants"

urban renewal. A

the Administration is

asking for
$100 million less for "special as¬

na¬

port you, Mr. Senator if you cut
that out," or—a government em-"

aver¬

for
"capital grant"

$500

eratidft^st

ail

This
again is a cut "in an
authorization, not in an appro¬
priation. So is the reduction by *'
$75 million from the previous
asking price for new authoriza¬

that

was

desks

28,

What Mr.

in the

was

imaginary, f igure, and

government

come

Feb.

Announce¬

three

outlays.

dormi-*

approvals

correspondents'
day.

tions

much'

million

V-

the V.
the

approved. ,.rv V 7"7'v'"■■■

got

age

or-

economy

tories, cafeterias, student unions,

itself,

Ihe rate of two

was

aims
House,

for

achieved by comparing cuts 7
Truman's guesstimate for

and faculty housing.
ments

the first consequence of the resurvey

victory

Eisenhower

comparison fiscal 1953 during
which the inevitable
build-up of
Uie Korean war was reflected
in peak

Finance

Home*

expenses

Supposing, constituents write
in something like as
follows:

over

start-,

time

and

Agency

hastily sum¬
press to his office

from
via

loans

this

Housing

Administrator,
moned

40-year

Treasury,

Hous~,

ing Program In Its First Major,
Move to Slash Budget; Other
Cuts to Follow." Albert M. Cole,
"the. Housing and Home Finance

and

fiscal 1952.

headline

ture of

tions of higher learning, are get- •:*..

matter, for in-.

by further using

total

fiscal 1954 which

College Housing
Numerous cross-roads colleges

ex-

enormous

with

trenched

1953)

$800 million from

some

This

was

na¬

security cuts
billion, made a

reduction

only

S100

fiscal

$10

year in office

the next. It would
curtail disbursements by

only

major

Truman's last complete and full

Treasury disbursements this fis¬

public

good

men

diminish

not

(or

nearly

would

c.—now :

than

with national

even

"washington,

other

tional security below "Truman's

buying

these liens that the
government.
through
other
agencies
has '

backed, and later" selling them
back, to institutional
investors,...

| Carl Marks
"

& Co. Inc.

foreign securities
specialists
20 BROAD

STREET

TEL: HANOVER 2-0050

•

NEW YORK 5.
„

N. Y.

TELETYPE NY 1-971

National Co.
Riverside Cemfent

;

Flagg Utica

LERNER & GO.
^pvestment Securities

10 Post Office

Square, Boston 9, Mass

Telephone
HUbbard 2-1990

Teletype
BS 69

Volume 185

Number 5624

The Commercial and Financial Chronicle

PICTORIAL

TORONTO BOND TRADERS ASSOCIATION
—

25th

—-—

Anniversary Dintwr
President

'■

•

...

jr
*"

—

;

-1

•

King Edward

March 8,

Hotel

1957

•_

•

Cecil W. McBrlde
'

Securities

Midland

■»£•/

'•.%

•

Corpn.,

Limited

Vice-President

Secretary
4

Treasurer

•

BI^^BlP^i^^B
\

rv
H

f. •

r
i

flUfl

Hill

•

* *•

■ Jl^B

P. S.

Crysdalo

E. P. Jarvis

J. A. Lascelles

•

Anderson

IV/wner and Com¬

Company, Limited

pany,

Dominion

Limited

Securities

'■■■■""'4/

Corpn. Limited

•
0

MEMBERS

L. E. Mayhew
Harris A Partners
Limited

THE

T. 0. Mulligan
Nesbitt,

Ross, Knowles

and Co., Limited

Ltd.

Stanley Co:
Bond

COMMITTEE

Co.

Collier, Norris
Quinlan

L.W. Virtue
Cor¬

E.A.Williams

S.A. Spidle

Q. I. Ryan

Thomson

Bankers

EXECUTIVE

•

James Richardson

poration, Limited

Sons

(ex-Officio)

Canadian

Bank

Commerce

The Commercial and Financial Chronicle

PICTORIAL

Hugh Benham, Bank of Canada, Toronto; Peter Crysdale, Anderson
A
Company Limited, Toronto; Bill
Nicks, Bank of Nova Scotia,
Toronto; Jack Ridley, A. E. Ames A Co., Ltd., Toronto

Nat Krumholz, Siege/ & Co., New York City; Nigel Gunn, Bell
Gouinloch A Company Ltd., Toronto; Mickey McBride, Midland
Securities Corpn. Limited, Toronto; Eric J. Wright, Geoffrion,
Robert

Gelinas,

Thursday, March 28,1957

Howard Hunter, Equitable Securities Canada, Ltd., Toronto; Willard
Hodgins, Bank of Montreal, Toronto; R. D. Mulholland, Bank of
Montreal, Toronto; Larry Bell, James Richardson A Sonsr Toronto

Montreal

J
r

>■/'//. v/-

|i§

::0
,

•••

...

Desmond Magee, Dominion Securities Corpn. Ltd., Toronto; H. N.
Bawden, Dominion Securities Corpn. Ltd., Toronto; Howard Wilson,

Dominion Securities

Bank

Bob

Corpn.
of

Ltd.,

Toronto;

Montreal,

Wisener, Wisener A Company,
A Company, Ltd., Tcrcnto;

Wisener

Lines;

Terry

Nesbitt,

Wisener

Roger

MacFarlanc,

Toronto

Ltd., Tororito; Jim Carnegie,
Jim Saks, Trans Canada Pipe
A

Co.,

Limited,

Toronto

/• C. Labbett, Davidson & Company, Toronto; Ian Heggie, W. C.
Pitfield A Co., Toronto; T. B. Wilson, A. F. Francis & Company
Limited, Toronto; A. F. Francis, A. F. Francis & Company Limited.
Toronto; J. A. Pequegnat, Cochran, Murray & Co., Ltd., Toronto

Lloyd Millson, Bankers Bond Corporation, Limited, Toronto; Nels
Lane, Nesbitt, Thomson A Company Limited, Toronto; Bill Cooper,
Davidson A Company, Toronto, Dave Dattels, Dattels A
Company Limited, Kitchener, Ont.

Stanley Ccx, Bankers Bond Corporation, Ltd., Toronto; Ed Mulqueen,
Mills Spence A Co., Limited, Toronto; L. W. Virtue, James Richardson A Sons, Toronto; A.E.Oliver, Wood Gundy A Co., Ltd., Toronto

A. Reid, Doherty Roadhouse & Co.,
Toronto; Russ Gee, E. T.
& Company, Toronto; Mel Gould, E. T. Lynch & Company,
Toronto; Rus Hutchison; R. A. Hutchison & Co., Toronto;
Bill Francis, Bank of Montreal, Toronto

Lynch

" Eric

Wright, Geoffrion, Robert A Gelinas, Montreal; Guy Major,
Major A Company, Montreal; Hal Murphy, Commercial A Financial
Chronicle, New York; Walter Downes, Kippen A Company,
Inc., Montreal

Frank Evans, McLeod, Young, Weir A Company, Ltd., Toronto; Bob
Wadds, McLeod,
Young, Weir A Company, Ltd., Toronto; John
Penny, Royal Securities Corporation, Ltd., Toronto

Ernie

Jarvis, Wisener A Company,^Limited, Toronto; Lyall WightIsard, Robertson A Co., Ltd., Toronto; Ted Isard,
Isard,
Robertson A Co., Ltd.,
London, Ont.; Tom Hockin,
Isard, Robertson A Co., Ltd., London, Ont.

man,

Volume

185

Number 5624

Maurice Munro, E- A. Williams, Gar Fenwick, and O. L. Robertson,
all

Canadian

Bank of

PICTORIAL

The Commercial and Financial Chronicle

Commerce, Toronto

John Hayman, Gould ing, Rose A Turner, Toronto; A. W. McLennan,
Gordon Wiley, and Norm Fox, all of R. A. Daly A Company

Limited,

Murray Stewart, A. M. G. Stewart & Co., Limited, Toronto;
Burgess, Charles H. Burgess A Company, Toronto

Jack
t.

Toronto

pft fi
"%V.

\
V

'it

w
w

<bi.

Heath,

Ames A Co.,

Walwyn, Fisher A Co., Toronto; Bruce Shaw, A. E.
Limited, Toronto; Dutch Fisher, Deacon Findley Coyne,
Ltd., Toronto; Alan Welch, Bell
Gouinlock A Company,
T
Limited, Toronto

Stuart

•

Jack Lascelles, Dominion Securities Corpn. Ltd., Toronto; A. A.
Kirk, Equitable Securities Canada, Ltd., Toronto; B. H. Mason,
Anderson A Company Ltd., Toronto; T. G. Mulligan,
Nesbitt, Thomson A Company Limited, Tcronto

■

•,

Annett, Gardiner, Annett Limited, Toronto; Don McLeod,
Royal Securities Corporation, LtdL Toronto; George Ollerenshaw,
Wilts, Bickel A Co., Toronto; Jim Annett,
Doug

Gardiner, Annett
Limited, Toronto
a
t—»"♦»

■

Mi.

%£

w/y's

4-S-?

Jfe*
*

|
0

Bartlett, Dominion Securities Corpn. Ltd.,
Toronto; George
MacDonald, McLeod, Young, Weir, Inc., New York City; Tony
Ma lion, McLeod, Young, Weir A Company, Ltd., Toronto

Phil

Cartan, Harrison A Company Ltd., Toronto; Ted Percival,
Harrison A Company Ltd., Tcronto; W. E. Parker, Dominion

Securities Corpn. Ltd., TLr-nto

■:

J- R- Meggeson, J. R. Meggeson A Co.,
Toronto; Bill Somerville, Toronto
Exchange,
Gordon Ryan,
Ross, Stock
Knowles
A Co., Toronto,
Ltd., Toronto

PICTORIAL

The Commercial and Financial Chronicle

Keith

Walker, W. C. Pitfield A Co., Ltd., Hamilton, Ont., Gerry
Urquhart, W. C. Pitfield A Co^Ltd., Toronto;' Hugh Mackay, W. C.
Pitfield A Co., Ltd., St.
Johi^, New Brunswick; J. C. Edweids,
Matthews A Company, Ltd., Toronto

C. W.

MacLean, Gairdner A Company, Ltd., Toronto; Murray Brown,
A Company, Ltd., Toronto; Bill Scott, Gairdner A Com¬
Ltd., Toronto; S. B. Jeffery, Gairdner A Company, Inc.,
New
York City

Gairdner

Dave

Cassels, Cochran, Murray A Co., Ltd., Toronto; Andy Anderson,
A Co., Ltd., Toronto; Jack Lascelles, Dominion Securi¬
Corpn. Ltd., Toronto; Russ Smith, Bank of Montreal, Toronto;
Eldred Godwin, McLeod,
Young, Weir A Company, Ltd., Toronto
A.

E. Ames

Tom Rogers, R. A. Daly A Company Limited, Toronto; Art
R.

James

Traviss, S. J. Brooks A Company, Toronto; Bill Candee,
Candee, Moser & Co., New York; John McLaughlin, McLaughlin,
Cryan A Co., New York; Gordon Simpson, Standard Securities
Limited, Toronto; Tom MacLean, Imperial Bank of Canada, Toronto

Art Schieman, Bank of Nova Scotia, Toronto; Nev Adams,
Intercity
Maturities Corporation, Ltd., Toronto; Art Oliver, Wood,
Gundy A
Co., Ltd., Toronto; M. C. Deans, Bankers Bond
'

Corporation, Ltd., Toronto

Jim

Williams,

Daly A Company Limited, Toronto; Don Wilson, R. A. Daly
Company Limited, Toronto; John Clark, Royal Securities
Corporation, Limited, Toronto

Fullerton, A. E.
Cochran, Murray A

Ames A Co., Ltd., Toronto; M. F. Newman,
Co. Ltd., Toronto; L. P. Chalmers, W. C.
Co., Ltd., Toronto; M. C. McLellan, R. A. Daly A Com¬
Limited, Toronto; Bruce Shaw, A. E. Ames A Co., Ltd., Toronto

Pitfield
pany

Harold Stanley, Royal Securities
Corporation, Ltd., Toronto; Andrew
Armstrong, Royal Securities Corporation, Ltd., Montreal;
Gerry Lee,
A. M. Kidder A Co., Inc.,
Toronto; Humphrey B. Gilbert, H. B.
Gilbert A Co., Ltd., Toronto, FirsfPresident of the
Toronto Bond
Traders Association; J. C.
Moorhouse, Deacon Findley
Coyne, Ltd., Toronto

Thursday, March 28, 1957

P°Pe»
Matthews

ties

pany,

...

Co.,

Ross, Knowles A Co., Ltd., Toronto; J. J. Gran
ton,
A Company,
Toronto; Gordon Ryan, Ross, Knowles A
Ltd., Toronto; Alex Ramsay, Ramsay Securities
Co.,
Ltd., Toronto

Fisher

A Co., Ltd., Toronto;
Gene St. Marie, Midland Securities
Weller, Wisener A Co., Ltd., Toronto; Jack Fulton, Walwyn,
Corpn. Ltd., Toronto; Karel Stonner, Bankers Bond Corporation,

Frank

Ltd.,' Toronto

Shaw, Gairdner A Company, Ltd., Toronto; Len
Watt,
Company, Ltd., Toronto; Fred Stevens, Gairdner A ComLtdMontreal; ^Alec Kenner, Gairdner &
Company, Ltd,,
Toronto; Ian Ferguson, Gairdner <ft Company,
Ltd,, Toronto

Gatrdner A
party.

Col. John H. Christie, R. A.
Daly A Company, Ltd., Toronto; John
Iliffe, Bank of Nova Scotia, Toronto; Sandy
MacLean, Bank of Nova
Scotia, Toronto; Don Wilson, R. A. Daly A
Company, Ltd., Toronto

Full text of Commercial and Financial Chronicle : March 28, 1957, Vol. 185, No. 5624

FRASER