Full text of Commercial and Financial Chronicle : March 7, 1957, Vol. 185, No. 5618

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ESTABLISHED

U in 1

t \i

OF MICHIGAN

MAR 3

1337

BUSINESS ADMINISTRATION
LIBRARY

Reg. U. S. Pat. Office

Volume

Number

185

New York

5618

EDITORIAL

Price

7, N. YV, Thursday. March 7, 1957

And the Wage

Middle East Oil

"People get the idea," Secretary "bf the Treas¬

Humphrey told a Congressional committee
day, "that we have some sort of a great
Weil down here in Washington that you can get

Lam out

Chairman, Board of Directors, Socony Mobil Oil Co., Inc.

ury

the other

"We do not have any

from

trarily deny their oil to us, and also proposes a reasonable dispersal to include more pipelines over routes that

of President

will not allow

...

holders' lot deteriorates and stockholders' share of GNP

make.

can

Mr. Jennings

members
Eisenhower's cabinet convey a sim¬
of, the leading

country to control

one

some

of the cost of

oil

This is well

far

during
ing

16
B. Brewster

Jennings

much

did,

about

sixth

of the total.

Continued
*An

eers,

Mr. Jennings before the
Institute of Mining, Metallurgical

address

New Orleans,

Feb. 26,

PICTURES IN THIS ISSUE—Candid

have

increase in January;
small but fairly

been

cutbacks in the
appliances;

There
Slichter

was

after

sales
H.

Sumner

rise

1957

and only
December;

Continued

by Professor Slichter before the Associated
of Cleveland, March 4, 1957.
"An address

page

Industries

Mid-Winter Dinner of the

today's 12-page Pictorial Section.

State, Municipal

STATE

MUNICIPAL

HUD

PuMic Housing Agency

COPIES OF OUR

BONDS

HAnover 2-3700

CORN EXCHANGE

REVIEW"

BROKERS

•

DEALERS

WEM4ERO NCW

N.Y.

15 BROAD
CABLE:

VO*K »NO

AMERICA* STOCK

STREET, NEW YORK 5, N.Y.

•

014-1400

Bond

Dept. Teletype: NY 1-708

t. l.WATSON &CO.

Active

Banks

and

American

BANK

STANROCK URANIUM

Brokers

MINES
First

SECURITIES

Due

Orders

Canadian Exchanges

Mortgage Bonds,

June

All
Markets
of

maintained

$1,000

Bond

•

1, 1963
Stock

units

and

consisting

Common

DEPARTMENT

CANADIAN

Stock Exchange

Executed On

At Regular Rates

Knox

LIGHTED

Common
Commission

Exchange

Chase Manhattan

Maintained

Markets

Dealers,

CANADIAN

Members
New York Stock

Stock Exchange

34 offices from coast to coast

ESTABLISHED 1832

County and

THE

120 BROADWAY, NEW YORK 5

Net

State, Municipal,

Members New York

EKCHANoeS

TELTTV-* NT

COBOBNMAM

REQUEST

Harris, Upham &

OF NEW YORK

Burnham and Company

DEPARTMENT

BOND

ARE NOW AVAILABLE

THE FIRST NATIONAL CITY BANK

DEPARTMENT

Bonds and Notes

"ATOMIC ENERGY

UNDERWRITERS

BANK

Corporation

Class A Common Stock
Analysis
our

25 BROAD

STREET

DIRECT

WIRES TO

MONTREAL AND TORONTO

goodbody &
MEMBERS

COMPANY

BRIDGEPORT

•

PERTH AMBOV

115

NEW YORK STOCK

BROADWAY

NEW YORK

DALLAS

request to

(Room 707)

Dohixiox Securities

IRA HAUPT & CO.
Members New

NEW YORK 4, N. Y.

<£cut/uO€4t

upon

Unlisted Trading Dept,

Teletype NY 1-2270

District Bonds

FIRST

very

and

Municipal:

30 BROAD ST.,

retail

small

uarv,

CHEMICAL

BOND

Automobile sales for the first four months of the

Big

Securities
telephone:

increase

adjustment for seasonal

U. S* Government,
Stale and

production

factors between December and Jan-

between November and

1957.

photos taken at the Annual

There

general

page

December;

moderate drop in the

of household

Annual Meeting of the
and Petroleum Engin¬

Association of Philadelphia appear in

Investment Traders

third

incomes did not increase

was

cember, and

More than half of it, 57%
exact, was consumed in the

about

steady

lull

orders of manufacturers in De¬

new

produced

used

The

1956.

ways:

There

last year.
be

expan¬

fairly

between November and

petroleum picture.
Free World* outside the Iron

Europe

been

most

Personal

and used nearly
million barrels of petroleurp a day

moderately slow
had

a cessa¬

business is manifested in the follow¬

Free

States.

United

there has been

definite lull in business and

that

The

American

DEALERS

be sure

present business

about the

fact

of the

Curtain,

taking place. Today, however, so large a part of
the revenue raised is the product of steeply
page

important

in the United States is that

sion

world

farther there is little to arouse wide¬
spread anxiety in extravagant public spending,
provided by good fortune or otherwise budgets
come into balance and remain that way. In other
circumstances the weight of taxation would be a
constant reminder to the rank and file of what is

most

situation

helpful new point of view by
doing just that, or are reminded of
things we learned long ago but have
forgotten.
By way of setting thestage for' discussing the oil of the
Middle East, let us review a few of
the more important aspects of the

Continued

The

closing

tion

get

reasoning

it goes, but if

Middle East

portant facts even though we are all
familiar with them. Occasionally, we

length bore in upon the consciousness of most
the citizens of the country.

goes

The Current Lull in Business

anything I discuss will be new. But
sometimes it is helpful to review im¬

bank borrowing—and to the
appeared as if there were a
well from- which money could
be drawn. Of
course, the consequences of drawing money out
of any such well as this are certain in the end
to be most unfortunate, and warnings of inflation

^age trends.

depicts current and prospective

ity;

in the last few months, especially since the
of the Suez Canal, that I can't

prelude to

economist believes:

drops slowly. Dr. Slichter refutes fears of surplus capac¬
'

So much has been said and written about

government could spend only what they,
rank and file, supplied, funds were being

uninitiated it in fact

standby facilities exceeding normal
requirements.

created wholesale by

them, and increased

Contends governments should absorb

storage facilities.

told that

believes it would not be

unduly difficult to establish and maintain such relations
with the Middle East countries that they will not arbi¬

ings such as these appeared to fall upon deaf ears.
Much of the time when the people were being

problems

current

considered, and suggests two broad approaches

ple truth not infrequently spoken in the past even
by politicians. Unfortunately, in the past, warn¬

the

which

material; against

must be

the

one

tion,, outstanding labor

background

well of free money. .The

money we

These remarks of

Ontlook

real contrac¬
(1) there
will be a moderate expansion in second half of 1957;
(2) business will be good in 1958; and (3) after examin¬
ing the impact of newly evolving industrial relations and
wage policies upon the economy, the tendency of creep¬
ing—not galloping—inflation will continue with expand¬
ing prosperity, keener competition, modest profits, and
productivity gains going mostly to labor, while bond-

Denying that present lull is

why Middle East oil is of such vital importance, provides v.

have is the money we take away
people and—after adding some over¬
head to it—pass it back to them. The people
themselves are the only source of our funds."

only

Copy

University Professor, Harvard University

Socony Mobil top executive supplies statistics showing

out of and it doesn't cost anything.

money

By SUMNER II. SLICHTER*

By B. BREWSTER JENNINGS*

Cents

Current Business Trends

Mankind's Stake in

As, We.,. See
It

NORTH

co.

Gkporatioti

EXCHANGE

LA SALLE ST.

CHICAGO

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

York Stock Exchange

tad other Principal

Exchangee

111 Broadway, N.
WOrth 4-6000

Y. •

Teletype NY 1 -3860

/
2

For Banks, Brokers,

The

Dealers only

This
Forum

A continuous forum in which, each

week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
(The articles contained in this forum

they to be regarded,

are

ae an

Ilerlit & Company,
Members New York

Long Experience
Full Trading Facilities

intended

not

are

Braniff's

ALFRED IIECHT

Participants

Their

New York City
Stock Exchange

international

bound

are

importance.

If you

believe

Airways

its

also

future

and

Ross

Engineering

Dependability

Service

17.6%

owns

less

and

the

Established.

Louisiana Securities
Bought—Sold

Corp.—

Teletype NY 1-40

PHILADELPHIA

Steiner, Rouse & Co!
Mernbers New

for

league of

the

lines.

—

dividend in
No

mon

shares,
Stock

Alfred

New York

J. 0. Ross

the

Dallas

York

Exchange

the

•

TEL. REctor

with

With

the

New

the

fi¬

$40

million long-term 4%%
lean, Mr. Beard succeeded in hav¬

Trading Interest In

ing the most modern fleet

American

Furniture

Seven

C's

the

air.

The

„

"EL

DORADO" this

Basse# Furniture Industries

coming spring will
plush run as the first

the

serve

domestic

with

Commonwealth Natural Gas

airline
newest

version

the

modern

fleet

STRADER and COMPANY, Inc.
Lynchburg, Va.

From

Trading Markets

system

and

industry

increase
6%

domestic

and

cost

well

Increased
of

the

ESTABLISHED

37 Wall St., N. Y,

1930

Tel. HAnover 2-4350

increase

keeping
efficiency, make

and

&reene<miGompann

etc.,

necessity of

service

lines

overhead

materials,

Request

ef-r

1, 1957, which of
subject to approval 'by

Earl M. Jorgensen*

passenger

board,

April

course,

Inc.

the

across

CAB.

Prospectus

fares

necessary,

for

all

air¬

expenses

were
rising to new heights dur¬
ing Ahe inflationary wave of the
last few. years, while lares have

remained
riod

stable

for

long.

pe¬

time.

Braniff Airways with its D C
Seven

fleet

will

pioneer

Philippine Oil

equipped

modern

up-to-date

mestic

offer.

Livingston Oil

with

American

four

airline

the

expected
Braniff

financing is
Boeing jets are

The

fleet

the expanding
by late 1959.

serve

international

beyond Houston

CAPPER & CO.

Panama
de

Jersey City,*. J. 1

2-8570—Teletype JCY

119
-

far

Bogota,

Buenos Aires.

international

required
With

City, Havana, Lima, Rio

Janeiro and
the

routes

to chief cities

in Latin American such

has

do¬

necessary

Braniff's
run

Direct Wirt
Dlghy 9-3424

most

any

will

completed.

Stancan Uranium

HEndorsee

the

fleet

be completed by this
spring.
Boeing has 707
engine jets on order for

which

Southland Racing

Exchange

Texas

coming

Wyoming Uranium

the

Delivery of the D C Seven

C ileet

Federal Uranium

the

subsidy

routes

mail

expected

have

payments^

expansion-of

Latin America, it is -expected that

(5)

certain

the

containers

into

Herbert

Marache, Jr.

rubber,

many .of
our

the

econ¬

paper,

etc.

and

has

it.

of the in¬

application

voir of potential business for Ross.
of

many

requires

the

control

variable factors

feasible.

Through Ross designed
equipment, atmospheric conditions
be harnessed.

may

result

market

Actually,
analysis,

as &
manf

is fully aware , of the
company's inability to handle all
the
potential business available.
agement

New opportunities must

subordinated

presently

established

due to both physical and en¬

ones

gineering limitations of Ross, not¬
withstanding the lact that sizeable
capital expenditures have been
and

are

being currently made for

expansion of the company's plant
and

engineering facilities.

(2)

Over the past, Ross has

joyed

continued

been

within

ever,

that

better

able

growth.

recent

years,

has

management has been
to translate increased

into higher net
profit.
In
195.4, the company reported earn¬
ings of $1.59 per share—this rose

$1.97

rtmvches.
Bankers

Broadway, N.Y. 6 COrtlandt 7-5680

Firm

Trading Markets

All

the

Maintained

Securities

—

TRANS-CANADA
PIPE

LINES

Limited

is capitalized

the increase

from

the

recent

1955, total current

were

W1SENER

COMPANY

AND

LIMITED

73 King St West
Trading Oept.

Toronto, Canada
EMpire 3-8204

than

three

as¬

rimes

liabilities.

company

incorporated

was

Ross" Industries, Corporation on
Jan. 9; 192.9.
On April.30, 1951,
the
J.

company's former subsidiary,

Ross

tion,

its

and

pany,
! y

Engineering Corpora¬
merged

was

into

name

the

com¬

adopted

was

Advertising ,is

1921

been

con-,

now

the

con-.-

ducting

the

business

•

ducted.by the company. Ross has
two
wholly-owned
subsidiaries,
one

the

S. and

Also, Ross

ac'av

one

John

has-a

com¬

minority, interest

British Isles.

The

the

temperature of

controlled
from

zero

areas

degrees and below to

it's

your

place

advertisement in

-r

„

THE

COMMERCIAL AND

FINANCIAL

CHRONICLE

Park

can

smart

Place,. New York 7

The

control

the air to he

range

may

above.

hir

processes.

1,000
Fahrenheit
and
designated moisture

high-'as

engi¬

company

industrial

for

fabricates .and installs

systems

customers.

new

Basically,

neers,.

*/''?' ~

securing

the

affiliate which operates in

useful tools in

Waldron

Corporation. In addition, Jhe
pany

most

in Ca.i-

93.5% of the

owns

stock

common

one

the company.-.The former sub¬

sidiary had since

vary

from

bone

dry

^ggssaggsagsaBB

completely saturated. Ross de¬

signs
each

the

specific
to

customer

needs

involved.

explicit.

tailoring

systems,

individual

the

might

Ross

of
be

called

upon

struct

baking,

engineer and

individual

curing

materials. This

or
oven

for

Over-the-Counter

Quotation Services
for 43 Years

heat-treating

might be

pable of temperatures

degrees Fahrenheit.

con¬

oven

ca¬

to 1.000

Another

ex¬

National Quotation Boreal

1955.

Although 1956 ample would be the paper drying
preliminary figures have not been .systems
designed and built by the
released as vet, it is understood
company.
Under high-speed and
that
consolidated
net
income

should

1897

—

Investment

Ross'

en¬

how¬

sales

end

manufacturing op¬
erations is creating a larger reser¬

resulting

The

serves.

increasing

Automation

111

es¬

reputation

from the future growth

The

Office, Toknn

Brokers

467,814 common
outstanding.
This takes

current

management's aggressive ahd able
guidance, will continue to -benefit

automation

liceip

The sole capitali<-

consideration

sets

metal

automotive,

sound

which

•••".*

Exchange Offer of Oct. 3,- 1956
by the company to stockholders of
John Waldron Corporation.
At

industry. There is every :-eato anticipate that
Ross, under

dustries

this

engineering staff of
gained a considerable

The company

and

•

.valuable asset to Ross.

equipment,

tablished

write "

Yamaichi

management

consolidation

conservatively,

growing field of designing, fabri¬
cating and installing atmospheric
control

Established

later

zation consists of

leader of this particular

Call

Securities Co., Ltd.

rate

the company's dividend

has

(6)

iridustries in

such

information

current

processes

basic

omy

For

assume

experience through the
years in dealing with the complex
problems of atmospheric control.
This "technological know-how" is

man-

appear to be stirring due
improved Japanese economy.

amount of

im¬

portance

policy,
to

dividend

Incidentally,

The

Ross

at-

facturing

now

unconsolidated subsidiary,
Waldron, should now pro¬
advantages-that heretofore

vide

the

prime

son

the

air

solvent

•

22,

remaining at practically,
stationary levels for three years

liave not been available.

the

former

John

mospheric
conditions
is
of

On Beo. 20, 1957, Bran¬
Airways made an application

Dixilyn Drilling Corp.*

Nicoi,

large,

the

fective

Preferred

control

payout

liberalized

The

(4)

Ex¬

equity

general public

national

fares

Preferred

offices

STOCKS

from 25c to 30c quarterly last De¬

well

too

recently

Stock

attractive

branch

our

cember 1956.

(1) Although

Ross

necessity.

Common

Morningstar,

air

enthusiastic

commercial

moaern

line

iff

and

make

military' point of view
strategically, important to

have

air

com¬

transport

Botany Mills

Braniff customers.

TWX LY 77

should

new

travellers

equipped

fort, the ultimate in luxury and
speed in air transportation. Such

Life Insurance Co. of Va.

LD 39

stock,

the American

price

reasonable

annual

increased

Engi¬

factors:

well

Ross

after

seem

year.

Exchange

wires

JAPANESE

1957,

indicated annual div¬

the

might

„

following

known

Direct

should

growth pattern of the

company's

that

purposes
based
upon

not

the

income

and

additional

common

City
Stock

.common

nancing' finished, which was ac¬
complished partly by the sale of
as

New

Engineering Corporation

neering

metropolis

necessary

York

change, is an
holding
for
appreciation

already shows the
most profitable op¬

New

believe that

listed

York—

"express run"

Texas

American

earmarks of

eration.

2-7815

This

which

run

New

the gateway to Europe,

Exchange

BROADWAY, NEW YORK S

120

route.

well

Stock
Stock

American

profitable

fabulous

York,

Members

New

ship of Charles E. Beard, Braniff
Airways received permission to

jl/fcpONNELL&fa

the

NY 1-1557

Orleans, La.-Birmingham, Ala.
Mobile, Ala.

This is

$1.20, Ross affords
an
attractive
yield
of
5.5%.
Should
earnings increase, as is
presently anticipated, in line with
would

1956, under the able leader¬

links

listed on
Exchange.

the

and with

Graiibery, Marache & Co.
Members

fly

over

idend .rate

com¬

HAnover 2-0700

New

approximately 58%
the corresponding figure in
of $721,000.
While it is still

the

and

1956

York Stock ExchangeStock Exchange

American

19 Rector St., New York
6, N. Y.

increase of

past several years.
(3) At its present

HERBERT W. MARA CHE, JR.

Hecht

much

very

the limengnt—when their new
fleet of D C Seven C's is com¬

Since 1917

debt,

year

2,948,119

out

for

Members

con¬

very early to prognosticate
I anticipate that this

also

and

first, half

the

.funded

SCRIP

1956

the

1955

paid

has

York

pleted.

its

liy2-9%, | its earnings
cents per share in
1956
It

uncompleted

tracts

1955.

already has
profit (un¬

gross

amounted to $1.14 million.

of Braniff Air¬

range

that

reported)

chain

Hemisphere.

1957

1955.

will

This

Braniff

Specialists in

cities

Management

announced

investment
links
important

consequently
should
grow
with

company

do-

share.

promising

59 cents in

cent

coming spring

RIGHTS

and

air-

Airways

was

"BIG"

t i

m e s

Principal Cities

America,

stops '-and

ways

tender

con

United

South

network

The

newest

SAN FRANCISCO

•

Wires

Private

its

'•

CHICAGO

•

business

Exchange

the

West

Quoted

W. Marache, Jr., Gran-

International

Western

ap¬

tors.

and

Braniff
stock

South

South American

inves¬

4,700

Broadway, New York 5

BOSTON

States

are

future

Braniff
WOrth 4-2300

are

the

proximately

1920

Stock

(483,217)

common

held

Member

Associate

(517,955)

than

Corporation

Blakley,

by the Braniff Foundation

two-thirds

New York Hanseatic

120

Braniff while 16.4%
owned

American

William

Alabama &

Senator

—

ana

bery, Marache 6c Co., New York
City. (Page 2)

industry,

expansion

Herbert

increase

the future of the airline
Braniff

J..

operations

and

grow

..Thursday, March 7, 1937

Selections

—
Alfred Hecht,
Partner, Hecht & Co., New Yorn
City (Page 2)

be, nor
offer to sell the securities discussed.)

Broad Contacts

Week's

Eraniff Airways

Whenever You Need:
1.

Financial Chronicle

l—■

Security I Like Best

fin the investment and

Try "HANSEATIC"

The Commercial and

(1102)

approximate

$2.50

per

Continued

page

Established 1913

46 Front Street
CHICAGO

New York 4, N.Y.
8 AN

FRANCISCO

Volume

185

Number

5618

;

The Commercial and Financial Chronicle

(1103)

I N D EX

Confident Look Ahead at

B. S.

Articles arid News

Page

ilCHTtnSKIH
AMD COMPANY

Current

Business

Trends

and

the

Outlook

Wage

By ROY FRUE1IAUFk

—Sumner H. Slichter__

President; Fruehauf Trailer Company
Y
'
■
Y'

Mankind's

relegation of nation's fleet of 719,000 box cars in favor
cars.
Based on 2.5% yearly rate of increase in rail-

The

freight ton-miles from 1950-1955, expects 25% growth

time in port

and

handling

drastically that it

Atlantic

from

highway

don't
love

discriminate

junk

come

l^te!

^____—_y_*_________

buy

Come early

Steel and the

Yerity____

Obsolete Securities

Economy's Future

•

WALL

Dept.

STREET, NEW YORK

___

Telephone:

WHitehall 4-6551

Credit Challenge of Potential Trucking Growth

Sidney E. Rplfe_;ur.v^4.'Y--4-j
of La'tih America and

Commodity

FEDERAL

URANIUM

Exchanges

Y—Sen.vHomer, E. Capehart___l______r_._^i_^._________

RADOROCK URANIUM

Vital Factors Affecting the Future of American Industry

—H. W.
The

Prerttis, Jr

•

UNITED WESTERN

Principles of Good Management';

True

—Jackson Martindell

hauling loaded trailers by Piggy-*
.jil'think: it - is a back; by the middle of 1956, there
bright' " future were 38, At the last count since
for the, water¬ New ^Year's Day, there were 47.
How far can this go?
It can go
ways,
includ-"
;ing the iS t. to the point where every one of

> —Erazar B. Wildel-

MINERALS

;

___.

Avoiding Long-Run Inflation and Strengthening Competition

;

RIO DE ORO URANIUM

•*

-And -1

roads.

Freight Transportation

Company: Deep in the Heart of Investors

Importance

Y The future of transportation is about 20 years,-and very success-,
' -V'-'
geared to the highway trailer. But, fully.
But, the big move to Piggyback
you may be surprised that I think
the future of transportation is a began in 1952, when three addi-.
bright
future tional railroads took the plunge.
forvthe rail- By 1954, over 20 railroads 1 were
•

Cobleigh"_'__g_-i.:___-J_________

Meeting the
y

is" most conservative.

program

__Cover

than

Recounts

ocean

Federal

new

OH, MEN! OH, WOMEN!

Oil

The Economic Key Issues of" 1957—Heinz E. Luedicke________

trailership round trip, and sees trailership
traffic as becoming one of the dominant features on the Great
Lakes. Believes estimate of 76,000 additional trailers resulting

recent

Texas

—Edward

"Fishybacks" which is said tn cut down

cargo

Ahead

YTlie Outlook for

1960 with nobody losing; traffic to Piggyback.

compensates for extra space occupied by trailers.

Look

•—Ira! U.

of flat

Extols outlook for

East

Y*; —Roy Fruehauf

roads to all of the 130 Class I rails offering Piggyback services,

in 10 years to.

Middle

Confident

predicted by Mr. Fruehauf in envisaging rise from 47 rail¬

motor

—B. Brewster Jennings

bright future for Highway trailer, railroads and waterways is *

atid

Stake

Cover

___

U Supplemental Unemployment Plans and Bank Trust Business
Y —Warren M. Harvey
i___
14

•

;

BASIC ATOMICS

L a

the

w r e n c e

Class

130

railroads

The Business Economist: His Role
<—John C. Swarlley_

in. -the

Differential

Discount

Rates

keyed
freight-

carrying trail¬
moving

ers

the railroads,

Roy Fruehauf

trailers

m o v-

offers

Piggyback

into
of

volume

the

future

the

highway

the

of the war,

end

nation's industrial growth has

been

built

trailer trans¬

truck

the

The yearly increase in
nation's freight load moving

wheeled

portation.

100%

has

vehicles

been

recent years, prac¬
tically all trailer freight was high¬
way freight. But, in the last four
yearsr trailer transportation has
taken

very

begun

turn.' The trailer has

new

move

the

key

vehicle in railroad transportation.
I refer, of course, to the carry¬
ing of loaded trailers on flat cars
Piggyback system. For the

—the

first time in
from the
are

nearly 30 years, apart

period, the railroads

war

getting

ditional

large volume of ad¬
new busi¬

and

83%

the

Pacific,

Wage-Profit-Price Controversy
City Bank's "Letter'Y_

Examined

National

First

JCY

215

20"/

Botany Mills Inc.
Regular Features

i
:

and Insurance Stocks,—___—

Bank

Hycon Manufacturing

Cover

(Editorial)

As We See It

growing vol-.'

Businessman's Bookshelf
'•

'•*
.

merchandise bv
railroads

Three States Natural Gas

—

•

,■

.•

—_______—________

__——

/■

•"

Dealer-Broker Investment

;

Coming Events in the Investment FieldL________

linked

now

trailers

rate

72,000 trailer loads

•

'*>«':

Pacific Uranium Mines Co.

______

Recommendations

;

miles

50Q

over

and

all

airlines

the

News About Bank and Bankers.!

Observations—A. Wilfred May__

Our Reporter's

sometimes

this

I think

real

Chicago • Los Angeles

point

—

Basic

Atomics, Inc.

Vitro Corp.

Prospective Security Offerings

But—and

stay.

Securities Salesman's Corner...

—_____

McLean Industries

don't

think the railroad box car is here
to

Direct Wires

44
—

Securities Now in Registration...!..^

And I also think Piggy-"
here

Exchange PI., N. Y.

Teletype NY 1-1825 & 1-4844
Philadelphia

25
_______

—

Railroad Securities

that the

say

automobile is here to stay.
is

Report

Securities

Public Utility

there are 46 other raiin the business,1 too. ;

back

the1 country.,

member,

it is, too.

—

Governments..__________

Our Reporter on

And this is just one railroad. Re¬

People

HA 2-0270

____

IMC.

„

—

express

Singer, Bean

News—Carlisle Bargeron___i

Indications.of Current Business Activity Y___——_____—37

the totalcarried by

year—equal

freight

From Washington Ahead of the

Mutual Funds

this
would
million ton-

distance,1

and

amount

'— 18

Eihfcig: "Inadequacy of World's Monetary Gold Stocks"

than

year.

Taking national averages

•

load

Market

The

and You—By Wallace Streete________—16

stay!
The
Box

The

the

by Mr. Fruehauf before
of Cleveland, March 4,

* ?
Let's

1956, for the first, eight'months
railroad was hauling loaded

Car On

box

car

Its Way

Smithsonian

Club

transcontin-r

Piggyback

offer

this

1957.

HEnderson 4-8504

Armand Chandonnet Rebuts "Prophets of Economic Doom"...

take just one of these 47 railroads.

got its start in 1926. Two of the
now offering this serv¬
in the business for
address

Threat...,__

Exchange PL, Jersey City

DIgby 4-^970
Teletype:

Piggyback service.
How
big is Piggyback?

railroads

Traffic

The Illinois

ental

ice have been
♦An

Four

Orleans.

_______

—

Milford A. Vieser Terms Inflation Nation's Major

Piggyback from the Port of New*

Actually as many of you know —
Piggyback is a very old and well
proven method of transportation.

the

reach

now

United States.

of imported

ume

business.

growing so fast
that any figures on it are out of
date before they
are published.
Piggyback

routes

Central is carrying a

roads
Fast Growing

1955!

over

nearly every main shinping point

sustained

It is Piggyback

ness.

According to Walter E. Spahr_

For the first

1932,

together from the Atlantic to the

trailer traffic.

Until

Salt Lake City Stock Exch.
Spokane Stock Exchange

eight months of 1956, the Southern"
Pacific's Piggyback volume was

Piggyback

Ever since

the

Members

Lowest Since

Ratio, Dollar's Buying Power

Gold

big

the Southern Pacific.

J. F. Reilly & Co., Inc.

—

exploded;

high levels in 1956. One
Piggyback carriers is.

new

the

trailer.
*

Retailers Should Wake Up—Roger W. Babson—

going!
■

ing on the waterways, and, in up 24% over the previous year.*
growing volume, on our new high¬ The Pennsylvania is another
The
ways, too.
The trailer is on the really big Piggyback user.
road
to becoming
the universal Pennsylvania's increase was 40%.*
The Lackawanna's Piggyback vol¬
vehicle, and the destiny of every
mode of transportation—with1 the ume grew 47%, the Burlington's
(exception of pipelines—is tied in 60%, and the Wabash Railroad
with

General Restraint

—Leo Fishman

;

service—and that's just where it's

transportation
will

States

United

Tomorrow's

;

to Modify

Seaway.

and Problems

the

way

Institution.'

Continued

Security I Like Best

The

___—

_______—

Metallurgical Resources

State of Trade and Industry—__!—

Out;

page

Lithium Corp.

Washington and You___i___.

26
London,

Gardens,

Drapers'

Weekly

Twice

Published

Eng¬

Shumway Uranium

land, c/o Edwards & Smith.

have

specialized in

II L I L H II L II OlUullu

Reg. U.

DANA

New

York

2-9570

HERBERT

TELEPHONE IlAnover 2-4300

•

Nashville

Boston
,

•

TELETYPE N. Y. 1-5

•

9576

Chicago

" Schenectady

•

Glens Falls

Worcester

matter

Febru¬

Subscription Rates
Subscriptions
in
United
States,
U.
Possessions,
Territories
and
Members
Pan-American

WILLIAM

DANA

SEIBERT,

President

March

1957

Thursday (general news and ad¬
vertising issue) and every Monday (com¬

Union,

Dominion

Canada.

Other

Countries,

market

quotation

records,-corporatidh lieWs, bank
and city news, etc.).

—

Other

Chicago

135 South La Salle 8t.j
(Telephone STate 2-0613);

Offices:

111.

per

$63.00

$67.00

per

Bank

and

per

eign

WHitehall

Record

the

exchange,

—

New

YORK 8

Teletype

3-3960

York

Direct

1-4040

PHILADELPHIA

Wires

& 4041

DENVER

fluctuations in

remittances for for¬

subscriptions and advertisements most

made

INCORPORATED

39 BROADWAY, NEW

year.

Monthly,
(Foreign postage extra.)

Note—On account
rate

WM V. FRANKEL & CO.

Publications

Quotation

$40.00 per year.

the

year;

8.
of
in

Other

clearings;

issue

statistical

state

$60.00

Every

plete

Albany

Stock Exchange

25 BROAD ST., NEW YORK 4, N. Y.

second-class

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

York 7, N. Y.

SEIBERT, Editor & Publisher

Thursday,
.

COMPANY, Publishers

Park Place, New
REctor

Members

B. Dana

Company
Reentered

S. Patent Office

ary

WILLIAM
25

Spencer Trask & Co*

1957 by William

CHRONICLE

FINANCIAL

fiQCCCPQCn CTflPlfQ

many years we

and

COMMERCIAL

The
"

For

funds.

SALT LAKE CITY

The Commercial and Financial Chronicle

(1104)

prized possession of over 122,000

The Texas

stockholders

Company—Deep

able international and

While other

50%- partner in the Caltex group.
Texaco's share in all this Eastern
crudes is roughly 360,000 B/D.
U..S. production is around 340,000

bird
companies i n

B/D, with principal well flows
in Texas, Oklahoma, Louisiana

growth of The Texas Com-

The

first frantic Spin-

;pany since the

idletop days of 1901 has been any-

jthing but spindling.

early

Texas

East

have

'gushed

and

gone,
has

Texaco

moved

ma-

jestically

forto be-

ward,

one.

come

investment

Such

have

with

vency

decades

for

exhibits

net

Net

earnings

largest unit

cities with the

B/D)

Arthur

at- Port

where pipelines feed in and tankers take it away in a highly eflicient

Abroad there are

manner.

ner

; have

p|r..share^ha

and Port Credit (Ontario) and interests in refineries at Puerta La
Cruz,
Venezuela,
Ras
Tanura

(Persian Gulf), Bahrein Island
and, with Caltex, a dozen others

have

world.

From

Ceblalf b

incredible

era

of 54 years

when

ago

would

tributed

the

over

spread about the globe,

about

$3.17

for

allowable

Texaco

has

corporate

production,

rocketed

into

magnitude

the

annual

world's

cash

its

equal

now

total,

income

such

that

owned proved reserves

its

and

exceeds

classic

model

integration.

all1 four

standard

produc-

It's big in
classifications:

Trans Arabian Pipeline, 50%
Texaeo-Cities

Service

Pipe

Line

The

there

tankers,

tank

trucks

cars,

and

international

has

concern

the

answer

the only company with direct
tail distribution
in
all
the

months

re-

seems

and

media

Texaco

ing vistas of recovery in Trinidad,

a repu-

Venezuela,

petro-chemicals besides,
We'll outline the production first.

Right

Texaco is producing
860,000 barrels a day, rough-

over

now

ly 56% from the Western Hemisphere, and 44% from the Eastern

Hemisphere.
McColl

Canada, through

Frontenac

(65%

Fire Chief

group

America,

facilities

Texaco

through

subsidiaries
in two

and

barrels

interest

risen from 50,000

per

1950

day
production

expanded

this

acquisition
tor

owned

50%

1956.

will

This

greatly

due

year

(in

100,000

over

September

1956)

$176 million (in cash) of Trin-

idad

Puerto
well.

Oil

Co.

Ltd., which has 30,-

000 B/D present production
Island of the same

the

plus

name,

and built

Rico

The

Ontario as
Caltex

interest in

provides
in

and

50%

marketing

broad

Hemis-

Eastern

the

phere.

big companies, daily crude

deliveries have

Latin

100%

its

name,

the

tation for tidy service stations,
Overseas. Texaco owns 75% of
Regent Oil Co., third largest in
oil products marketing agency in
the United Kingdom and a distributor
in
Trinidad,
Jamaica,

owned)
Exploration
(100%
owned), daily production is above
30,000 barrels a day.
In Latin
and

extolled

has

illustrated

by the fore-

going, Texaco, by 50% ownership
in
Jefferson
Chemical
Corp.

(American Cyanamid owns the
other half) and a 50% ownership
of Texas U. S. Chemical Co. (U. S.
Rubber is its partner) is moving

rapidly

ahead

Port

plant

petrochemicals.

Neches, Texas, there's a
Chemical) con-

(Jefferson

favorable acreage on and
offshore,
pipe lines to shipside and a 90,000

verting refinery by-product gases
into useful ethylenes and in tne

B/D refinery.

same

the Eastern

Hemisphere, the

big production is

from

^terest in Aramco,
-e»t

the

one

of the larg-

producing enterprises in
world
gushing out over a
barrels

day

sands of Saudi Arabia.
duction

him

United

Gotham!

the

rising '

the

King Saud
Cadillacs,
and

official

States

Other

friend

Iranian

except. in

—

oriental

tion is derived from
in

from

This pro-

to keep

serves

custom-built

makes
the

in-

produc-

plant

(Texas-U.

Chemical) for production of butaa

basic ingredient of

million

$28
a

long-term

debt,

$209

about

million in minority interests,
bank loan (to fi-

$150 million

tude

Trinidad Oil Purchase) and
then 54,897,470 shares of common
stock listed on N.Y.S.E... Current

unwarranted.

seems
over

and

successful

most

if there

and

terrain

whether

bird

has been

seemed

have

Alamo

about

the

quite

likely

in 48

the

quotation is 59 which,

°f

1956

dividend

the basis

of about

find.

It is

are

pleased

announce

that

through

easier tone

MR.

MANAGER

become

associated

with

OUR

TRADING

that
.

oil today

than

25 Broad

Street, New York 4, N. Y.

ing week in 1956, when

any

132,038 units were built

Plymouth, which recently has been making cars at twice the
rate it did last year, eased off to five-day scheduling the past
week because of body shortages.
However, the division has big
plans for March with two Saturdays on tap, "Ward's" noted.
Only three divisions anticipated six work days the past week
and they included Chrysler, De Soto and Ford. Chevrolet, after

("Special to The Financial Chronicle)

BOSTON,

Mass.

—

Jacob

Free-

lander, Morton L. Goldfader-and
Edward

Herrick

are

now

with-

Investor*

Investors Planning Pnrooration of
Planning Corporatio
f

hearlys20%! the week before, bounced back to
still 20% below a year
4 ago,"Ward's'* stated;; Ford turned out 33,000 cars last week.
:
.cutting car output

30,000 units last week, but its schedule is
.

New England, Inc., 68 Devonshire

"Ward's" estimated February car

pected to surpass

W ALL

STREET

Raw

—

Refined

production at 570,500 units

February,* 1956..
March of last year.

compared to 555,596 in

„

.....

94.9%

Capacity This Week

In the steel industry

the

This month, %oo, is ex-

Steel Production Scheduled to Drop to

this -week "Steel", magazine warned that

metalworking companies may be pinched for steel

by mid¬

if they continue to reduce inventories. They are likely, it
stated, to be caught by a strengthening in demand in May or June.
year

5, N. Y.

The

sumers,

—

DIgby 4-2727

con4

metalworking weekly pointed out that many steel

suppliers, have been
several months.

particularly auto makers and their

reducing inventories systematically over
r
The drive to lower steel stocks has come from top manage¬
Liquid

Exports—Imports—Futures
f

Telephone: Dlgbv 4-7485

repair in

trucks Compared to-139,038 and 23,342 the week before.
Although the past week's car output was low for 1957, except
New Year's week, it was still 5% better than the correspond¬

for

Three With Inv. Planning

SUGAR

■

is putting the mills back into

and 23,800

ever.

DEPARTMENT

market

"held the line" last week.

has

NEW YORK

Specialists in Bank and Insurance Stocks

overlooking

they may be

But

Activity, in the automotive industry in general, said "Ward's,"
Production was forecast at 138,938 cars

surely
paid dividends
interruption since 1903.
TX

LAMB0RN & CO., Inc.

Ralph B. Leonard & Co., Inc.

year.

Some of this maintenance work is long overdue,
concludes "The Iron Age."

over¬

given month.

„

calculated risk in

and if they refer to the

way;

99
has

position where they can revert to normal maintenance policies.
large midwestern mill, for example, has gone back to the usual

•

GEORGE V. HUNT

the

of the

of
.

taking

cycle of having one of its blast furnaces down for

the

Street.-

are

can

customers

Texas

regtrd^d 1SS5S

you

everywhere apparently are taking their inventory
auto

this

The

And, after all the billions of gal¬
lons sold
in the
meantime, TX

payments- of
.:

cases, ware¬

investment manuals they'll

has

In some

abrupt upturn in steel demand from, the automakers.
happens delivery promises will automatically stretch
out and some users will be caught short.
;
"t
bring

When

They can't help seeing
38,500 retail outlets
states to which a star points

without

tougher.

tie-in technique, it points out.

same

to rock

cut

Company.
of

The mill without these "bargaining"

important point that automotive steel inventories have been
bottom. A turn for the better in new car sales will

one

they're

but

gives the advantage to those mills producing

continue

will

forgotten

to-remember

the

Some'steel

In common with
most majors, it refines a lot more
than it produces so the urge to
"rev" up crude production is al¬
ways there.
investors

account

playing their inventory reduction policy. They are assuming that
because some forms of steel are in plentiful supply, this situation

dirt early.

Many

sale

users

from

rig,

Alberta,''Aus¬

to arrive

pay

auto

Arabia,
Texaco - has
early and strike

tralia,

their April steel orders, possibly with the intent of increasing
output the following month.

for

likely

drill

the

for

was

dog
a

out¬

and appliance makers, and they are going
inventory cutbacks. It looks as though the auto
industry, at least, plans to play it close to the vest for at least
two more months. Two of the Big Three automakers have stepped

shrewd

into

January."'

using the

are

overboard

Texaco

the years been

«.

mills, the "Iron Age" reports the current week, are
a turn for the better in demand for some products

Steel
cue

pessimism about Tex¬
aco's ability to keep itself in crude
oil

one

taken

variety of products.

houses

dour

has

debt

right after Christ¬
board official, but he observed that with

tools is finding the going that much

reserves

only by Humble Oil.

oil

wide

in the
United States exceeded in magni¬
Domestic

(3)

instalment

The tie-in

Canada and the .'lush
(Central Sumatra),

nance

-provid-S a ..$e
arid,

and

note

Capitalization

production^ from VBahreta ; the £ost°£gh?y
Sumatra,
leum equities

Island and Central

syn-

thetie rubber.

7% interest

consortium,'

world, particularly its ris¬

field in Minas

some

city

diene,

oil

million

30%

the

new

In addition to the complete integration

call

reported

during the next three months., Meanwhile, the scramble for avail¬
able business in sheets, strip, and other products .in good supply
is becoming more intense.
Where they can, mills are tying in
sales of easier products with those in stronger demand, states
this national metalworking weekly.

than six
Texaco's broad
oil production elsewhere

states, and smart advertising in all

factors

counting

(2)

tion, refining, transportation and
marketing; and it has a sizable

Board

decline amounted to $52,000,000. '

during

Steel

the

transport

problems are less acute
ago,

cor¬

;

rate, though nothing like it was back in mid-1955."

the

(1)

17% below the■

were

instalment debt rose $228,anticipated
another
seasonallyadjusted rise in February and summed up the situation by saying:
"Consumer credit buying is still expanding at a ,pretty strong

some

account

Reserve

mas," commented
000,000

East,

been

stake

January

Over the long run

supply

Arabian "

Middle

the

this

of Texaco.

case

Federal

seasonal

companies.

naturally

"Instalment debt always tends to go down

of Texaco crude

from

come

shining example of broad scale
effective merchandising. Texas is

the

transportation

and

supply

Since about 40%
has

fleet of

The

year.

instalment debt took an expected tumble in Jan¬
but officials described credit buying as "still pretty strong.'*

recent

all

ieo Pipe Line Co., plus

past five years.

contracts
10% below, those of last year.

were

standing declined $254,000,000 during January, the first monthly
decline since the $134,000,000 drop a year earlier. Two years ago,

unpleasantness at
Suez has raised certain questions

Co. and 45% in Texas-New Mex-

$}■■•» marine terminals,
In marketing, Texaco has been

billion.
Texaco

Such undis¬
earnings

averaged about 75c a share

Transportation is achieved by
Lone Star barrel of oil at the wen
feeding
pipelines, especially
at
head, till today with its price of-Port Arthur, a 30% interest in
buy

industries.1

Consumer
uary

unshown

and

power

awards for the first nine weeks of 1957

share in undistributed earnings in

ship is only partial.

ago.

Awards for'heavy civil engineering construction

responding level last

corporate interests, where owner-*

the

year

Although commercial construction. and private mass housing--inhousing
creased, awards for industrial building fell noticeably. A moder¬
ate decline in contracts for public construction occurred, accord¬
ing to the "Engineering News Record." The cumulative total of

Texaco's

do not include

automotive,-steel and electric

$5.11 for the 12-month period
ending Sept. 30, 1956.. These net
figures are arrived at by the most
conservative
accounting * proced¬
ures

Bu mines* Failures

Output losses from the preceding week took place -in the

"%* '

upward curve from $2.71 in 1950

and

•

petroleum enterprisesof the

Ira U.

responding period
'

refineries at Montreal, Edmonton

Auto Production

industry

^v»declrned 14% last week, and

major

the

been

running along well over the half
mark, before the Trinidad

Index

'.,1

corporate sol-*
working capital

billion

Retail Trade

Commodity Price Index

A modest decline in total industrial production for the country
as a whole was apparent in the period ended on
Wednesday of last ',
week. However, output Was moderately above the level of the cor¬

„

.Refining-; capacity: (domestic)
totalling 600,000 B/D is located in
(230,000

and

that

Production

*... Electric Output

Food Price

decade, the stock was split 2-for-l
in June of 1951, and 2-for-l again
in. June of 1956.
The balance
elite

State of Trade

deserved; and it is. In
period July 1, 1946/56,
Texas - qualified
definitely as a
"growth" stock by racking up a

sheets

•

Carloodraps

must

Steel

The

indorsement

and "California,

seven

.are

over

institutions.

market advance of 350%.

panoramic portrayal of fhis progressive and profit¬
integrated blue chip in black gold.

portfolios

the 10-year

Enterprise Economist

Presenting

solid

its

and

the

financial

46*0

U. COBLEIGII

By IRA

found

In the Heart of Investors

Thursday, March 7, 1957

ment, according to the publication, and purchasing agents and
production people are becoming concerned over the low level
of

supplies.

If automotive

•

production steps up with the advent of warm

weather, auto makers pnd. o.ther manufacturers will find their
steel deliveries lengthening.
Even. if auto productidn continues
•

Continued

page

Volume

135

Number 5618

;

The Commercial and Financial Chronicle

The Outlook for Steel

Observations.

And the

•

By A. WILFRED MAY

Economy's Future

Staff

Steel

Economist, The Lukens Steel

inclined to be comparatively bullish

and writers ;

skeptical, if the 1956-57 forecasting contest results conducted by
Eastman Dillon, Union Securities & Co. is to be considered typical.
The contest's prediction period bsgan in mid-February, 1956,
'
'v
when the market, at 470 for the Dow-Jones
Industrial Average, after the new, year's 3%
reaction, was about to re-embark on a 55-point
rise to a new all-time peak in early April. A
double-top in early August, from which
a
sloughing-off to the forecasting in-

ensued

terval

12 months

where

just

468,

previously.

The contestants' box

;

the

88-90'

of capacity. Any easing in the

despite

it had begun
'
., ...
•
is

willing

but 448.

forecast of

Likewise

Wilfred

May

actual 8%

the

case

tell

this

dealing

turn

the

rails,

being exceeded

both

The

a low of 345 to a 600 top; on the
the utilities from 44 to 91.

will

made

available

very

to add

hap¬
my

thoughts on
subject—
first

but

would

A New Stock

that

Hemphill,

& Co.

Noyes

the similar period of

•

ing,

is 60,300,000

low,

our

average,

which covers the

luncheon

Natu¬

future.

third

The

prices

So the new index

price

way,

the

action

aid

the

our

great future corporate

number

devices,, the

new

not

❖

execu¬

become

in-

the

because

had

myriad

of the
to

report President Funston
voices the
new equity capital will be
needed over' the next decade to "finance the future on a sound
-

Continued

page-16-

are

materially affecteo

fellow

The

These

buggy-whips

I900's

is .not the

businessman
Another
too

many

Forecasts

long-term,

who

profitable.

trends set the
lines for any
short-term
forecasts.
When we
look
at
the
forecast
for
1957,
These

long-term

framework and guide

of today.

pitfall in forecasting is

have

keep

Continued

page

therefore,

changes, or not enough.

reviewed

prove

may

1957 Outlook

.
1

most prosperous

should

the

early

the

growing demands for serv¬
analyze areas
economy
which, over the

ices have lead us to

made,

business
of the

steel
products produced
moved through warehouses, today,
steel warehouses move about 20%
of
domestic
steel
requirements.

the

exceptions.

1930,

rolled

rise, yet the forecast of
overall activity could be perfectly
correct.
Usually,
general
eco¬
nomic
prosperity carries every¬
one along with it, however, there
by

Back

alone.

growth in

warehouse

steel

the

Take

production.

in the steel industry

not

areas

bearing

his

have
com¬

business, and concentrate
impact oi circumstances
which affect his company direc.ly.
We therefore begin to. get tailormade forecasts to
meet
specific
demands.
For example, I do not

the

get excited by changes
cur

the

shoe

though

importance

major
we

not

—

qualities. Some of these also have attractive
possibilities.
Our

complete investment service to United

V A

steel

consider

Research,.Department with up-to-date informaon
major Canadian companies.
.

talk

Correspondence Department todealin securities
by mail.

V A

Private

teletype service to our offices across

Canada and
V

New York.

Membership in The Investment Dealers' Associa¬
tion of Canada, and through our broker affiliate,
membership in leading Stock Exchanges in
Canada.
'

Inquiries from investors
are

invited.

McLeod,Young,Weir & Company
LIMITED

Investment Dealers Since 1921

the

plate.

before the
New York Chapter, American Steel Warehouae Association, February
11, 1057. *
♦From

States

tion

KING

STREET WEST,

TORONTO, CANADA

Montreal

Ottawa

Winnipeg

London

Hamilton

Calgary

for

growth

investors includes:

even

automobile industry a major mar¬
ket

us many

offer sound investment

which oc¬

industry—where¬

changes in automobile demand
of

buy through

can

securities which

Canadian

He has to weed out those

the economy which

United States investors

little

Sound Canadian Investments

measure

find the professional
beginning to do some pre-judging

as,

capital needs be filled through
In the New York Stock

—those of

would

himself.

facts

used

now

executive

line

function

also,

data

are

issued annual
premise that $60 billion of

the

all

business,

index

currently

line

the
facts

where

And

their own

stock issuance or debt securities?

Exchange's

have

factors

areas

creasinglv complex—reaching the

Stock Versus Debt Financing
Shall

the

pany's

electronic

right tor

For

indus¬

As the company gets larger,

could

and carried hourly on

limit

judgment

evaluate

but will serve as a very useful gauge of

elaborate

growing
demand for
services faster than the growth of

the wrong rea¬
example, total indusir.a
production can climb to a new
high—but if it is primarily due
to non-durable goods production
be

can

trends also in¬

long-term

professional

the.

and

point

changes

and will

can

duction. ■'

the

where

area

for

evaluated

tive.

various-ticker services,
automatically make available opening, closing and high-,
low figures.
Further, the Datatron machine computing the new.
index in the Boston laboratories of Melpar, Inc., eliminates all
issues not included in the averages and refuses to recognize changes
of more than 3% yntil they have been checked!
be calculated

this

facts;

where

of the market "leaders."
the

With

mus.

consideration

need

the

the existing averages will not be rendered

obsolete by this new one,

common

himself.
same

pitfall—that

goods pro¬

consumer

degree

'"crystal-ball gazer." The profes¬
sional's principal job is to silt out

holdings.
the

narrowed

into

will be useful in giving investors an easier

yardstick for comparison with the price fluctuations of

provided food for thought

has

try, government, and other areas
of
the economy have developed

While, on a percentage basis, the fluctuations in the new index
the higher-price averages are much the same, it seems that

Nonetheless, the fore¬

Another

production and an

goods

capital

using.

busy executive.

practically comprises the actual average of
value basis. The average value of all issues listed
31. last, was $49.12. The
Poor's index was 47.40 on that date, against the much

public unalterably persists in conceiving
pointwise rather than percentagewise.

decision—whether

of the factors which

some

on a

the

and

higher figures, 200 to 500, for most of the leading averages.

Again,

speakers.

it.

cast has

the New York Stock Exchange on Dec.

Standard &

believe the forecast—orfo dis¬

index

new

the New York

influenced

magazines,
business
the government and

make

must

major effort to clear up the confusion

samples in existing averages have never carried more than a
of the total value of the market's outstanding shares.

will

the

becomes

periodicals,
conferences,

accurate therefore,

The

the

forecasts contained in newspapers,

1955 and 11,400,000 shares be¬

Stock Exchange.

day —either

devote all of his time to forecast¬

taken

and

evaluation

in stock market
evaluation arising from the existing divergence between market
averages and the prices and movements of individual stocks, and
to overcome the present sampling drawbacks, Standard & Poor's
-has just initiated an hourly index of 500 stocks, broken down into
industrials, rails and utilities, and based on 90-95% of the total

forecast

makes

continually

regard

stock

on^

Tne

unconsciously.
He
sitting information
regarding prices, costs,
produc¬
tion schedules, delivery
dates —
and planning — according to his

value of common stocks on
.

utilize:!—is

and

businessman

one

bearish, the owners of more than 41
billion shares of
Big Board common stocks either are not aware <bf it or just don't
believe it. I continue to go along with these owners who control
about 99.75% of all Big Board common stocks."
bullish

and

dan¬

thing. Or if you are doing
any crystal ball gazing just keep
in mind who's crystal ball you re

sons.

did not penetrate
If the market has reversed its long-term trend from

market

con¬

cold war.
A hot war would change the out¬
look and so would total disarma¬
ment.
Total disarmament would
see
an
immediate
decline
in

The

consciously

smallness of the

volume

can

based on
The major

tinuation of the present

dicate

least

While the Dow-Jones Industrial

195C.

1956

"1957

knowledge

are

assumptions.

being that we expect a

one

else,

cau.e

average

it:

puts

from

everything

trouble—is the fact that forezas.s

that is familiar to all of you.

and the launch¬

been devised

example, Harold Clayton in,the current issue of his letter

its 1956 low.

the relative

on
,

Average penetrated its

little

obtained

are

;

forecasts

These

certain

First, the art of forecasting, and
is an art not a science, even
though scientific approaches have

Average

shares behind the similar period of

whole

therefore, forecasts have to
carefully, if the maximum
Just

Total steel production will
average
an
annual increase of
approximately 4% per year.

be used

them.

will

(4)

able,

rate.

5% yearly

ably 3% per year.

no!

reader

production

Industrial

(3) The general price level will
continue to move upward— prob¬

Right for Wrong Reasons

rally, not having the opportunity to

sample.

(2)

increase

new

Also is their dissatisfaction based

States will

increase at

cf.en

are

benefits

approximately 11% per
over the next' 20 years.

year

Very often all the
readily made ava 1-

not

increase

gerous

a
few pitfalls
help in using forecasts.

may

the

;

•

goods and

Pitfalls in Forecasting

ing from 200 to 500, it is felt that they are misleading in their
daily fluctuations being out of line with actual price changes.

•

forecast.

forecasting

—and men'ion

Edward J. Verity

rails

index which is designed to solve them. Increasing
complaints, in the greatest volume since the founding of the
first average back in 1885, are being voiced, as on confusion which
results from the wide price swings of the higher valued
stock
averages.
With the price readings of most leading averages rang¬

hind

the

each —very

early

services in the United

facts

these bring to the fore the dis¬

satisfactions with the traditional popular averages,

for

major

the

Total output of

(1)

assumptions have

some

For

and

cast,

assumptions

the

derby of the Security Traders Association of New York v/herein
the thousand members have pitted their forecasting skills.

built-in

interesting to note the imminent results of the similar

Forecasting activities such

people.
-

company,

basic

fore-

ranged all the way from

ing of

such

1930's, notwithstanding recent re¬
marks by high placed government

This is because ihere
bias in every fore¬

industry.

his

made

groups

striking feature of this forecasting derby's results
of the predictions.
On the industrials they

from 99 to 210, and on

outside

course,

divergence

It will be

every¬

else

discuss the art

other

the

using

one

these

figure of 169.
was

any

envision,

not

depression

of the

the investment. house members'

stabilizing forces in the economy,

greatest pitfa'ls
forecast made by some¬

one

caster.

one

the

firm associ¬
overshot the mark; despite the occurrence

rise in this market group.

with

bring
t

seems

utilities

1957

year

for

guessed too high.
Whereas the D. J. rails actually closed the period at 143 (down
from 156), the writers topped this with an average guess of 162;
In

what

you

the

will

writers underestimated, while the
ates

;

the

Thus

look—some one

you

to
V

substantially

was

around

„

Everywhere

expect cyclical ups and downs
these trends but, due to

year.

forecasts..
long-

the

100-page book. But let
summarize by giving a few
is

possible temporary inventory adjustment at the end
Cites different conditions now prevailing to negate
fears of a future major depression.

,o( this

business and

our

for

forecast

basic

highlights of some of the signifi¬
cant long-term trends.
Of course,

critically short

behind

reasons

term

plates is expected in the lighter gauges in last Jialf of 1957,
and Mr; Verity sees heavy plate demand for the next 2-5 years

overoptimisfcic, at •
512, while the more cynical * writers
have
proved to be overcautious with an average ;

forecasts

including

demand, if equal to shipments, plus inventory building, will be
5% or more above 1956 with operations for the year at

of the Eastman Dillon firm members'

average

factors

economic

expected demands of such major steel consumers as auto,
machinery and anticipates total finished steel

shows that the

score

various

Depressions

nomic picture on our

Company,

construction and

subsequent reaction was fpllowed by-re-ascent •
to

dissects

economist

news¬

Tdiscuss at length]
the effects of the long-term eco¬

.Coatesville, Pennsylvania

Sweepstake Results

the

Major

could

Our

are

headline

Sees
I

By EDWARD J. VERITY*

MISCELLANY OF THE WEEK

Brokers

there
paper.

•

(1105)

Kitchener

Quebec

Sherbrooke

Windsor

Vancouver
New York

by Mr. Verity

The Commercial and Financial Chronicle

(1106)

Thursday, March 7, 1957

indicators,

The Economic Key Issues of 1957

that

the

By DR. H. E. LUEDICKE*
Editor, "Journal

of Commerce," New York

business

largely

City

GNP for

increasing,

1957

central

the

issue

uncertainties

and persistent gap

profit squeeze
between suppdy of and demand for invest¬
ment funds. Speculates what will
replace diminishing capital
goods boom, and warns against inflation-panaceists.
l'irst

have

year

effect

two

had

months

rather

the

about the

head

sobering
by

the

sharp drop in

preted

orders

new

the
ment

of Com¬

month

strike

logical sequence,
after the summer

new

rather

than'the

start

upturn.

This

cyclical

those

pressed

ber to Decem¬

gains.

ber, in 1955,
orders

by- the

post-steel

o v e m

-I

Heinz £.

was

rather

Luedicke

there

drop of $600 million,
is

•

...

•'

•

swing of $1.6 billion.

With

substantial

much

this
of

drop in

the

initial

still

when
This

move

new

way

sustained

that there

could prove highly significant
less it is reversed quickly.
».

flight

from

consumer

circumstances,

prices,

into

currency

Thus,- while many
rently are worried
time

cur¬

over

growing
to
rising

resistance

the

goods.

ooservers

really

start

econ- '

-an

structure,- it

„

caution

been

not

rate of

As far

rather

cannot

the elimination

ups^and downs,

good thing for.

that

can

only onythe basis of
rewards

and

penalties.

prospect-for

ing, is

another

by
*

for

investment'

them

aggravated

is. a threat only
in business, accompanied

brings,

increase in unemployment,
a
return
to
deliberate

monetary inflation, either in form
of .credit

inflation

via

deficit

financing.

not

nearly as clear-cut.
of -Earlier-estimates put the expected

{.A increase in 1957

sub-

■

-A/.--

consumer spend-

the

The in¬

More inflation
it a drop

in consumer spend-

itr is -quite evident* ing at another $10>billion; on the
tailend oU-lhe'1957? basis of- the current price level..-;

Although
that

system

The

istantial boost

dyfunction
a

r,e.c a s t

.reached,

telling

decline

ac¬

tually will set in.1 Our economic

and

timing devices still

are

quite im¬

un¬

perfect.

the

available

None

has

g. season

that- the

been

III

foregone
the

conclusion.
is that

matter

will

The/fact

GNP

•;Gites- Key .-Issue

•

show another

That's

what

orders,

*An address by Dr. Luedir.ke
the New HanmsVrc R-nk~"-t A —

Manchester, N.

H.,

Feb.

26,

before

GNPl

makes

among,

„

business,

(

Watph

depend

business

pat-

spending

this

Inventories.

The

There

drop

have

now

During

$11

lion.
the

this, period
by/

* instance,, the
moderate
1953/54 recession .brought forth

this

inven-

that

bil-

further

half

since "

out

is: widely

the

none

argued
earlier

postwar recessions proved serious,

period,

$88

some

•"

Moreover,

that,
the

v The

between

second

forecasting
wrong in
previous-three or four

turned

years!

that'the

"precautionary
that

each of the

For

earnings.

idea

same

bias"

American.wage earner lias
the well-earned reputation of being a free spender. It is unlikely

relationship

the

one

belief

future

won't

either.

serious

any

this

stands

limit

can

adjustments

moderate

Behind

that

all

deliberate

price in-'
actions, such as the contracyclical
his buying use of fiscal
policy, changes in
big prob- credit
policy or deliberate changes
about 2 to 10, allegedly the "nor-vlem is what
may happen if a levin wage and price policies.
mar'
rate
of
gain; but., despite eling off in the boom leads to an
There is no time here today for
these assurances, corporate manincrease in unemployment—as is
a blow-by-blow description of our
agements would now clearly pre- likely—and the current
feeling of
postwar fortunes; or as many be¬
fer a halt in the
inventory rise, uncertainty spreads from managelieve, our postwar "luck."
Usually
periods
of
inventory ment to labor,
It is a fact that each time the
liquidation are preceded by a peTne lypicai labor leader today
economy
seemed
to be running
riod of involuntary
inventory ac- knows that full employment reout of steam, a new factor came
cumulation, when finished goods quires a gradual increase in the
into the picture
that started us
in the hands of manufacturers are price level. Thai's
why he accepts
off on a new phase of the postwar
backing up. We may still be in "creeping inflation" and deliberboom. We even had to invent a
the period of
involuntary accu- alely ignores the possibility that
new term for this sort of
thing—
mulation.
1
creeping inflation may turn to
calling it the rolUng adjustment.
This
must
be
definitely
regalloping inflation for which the
In
1950,
the
Korean defense
garded as a deflationary factor, public—including union members boom took

tory

gains

Product

"SECURITY DEALERS OF NORTH AMERICA"

Any

of : 1957. may fall behind the first
half is being shrugged off as the

depression";!
however, that

evidence,
might
be
responsive
to
much less than a big depression,

•

un¬

.trend.

a
.

tnis

would-- take?* a --"big
is

tol¬

can

sizable increase in

employment" ..and will have "$to
and act quickly? to.stop su.ch

knows.
that

administration

any

act.

de-

wage

"no

erate

itf would

"really

believe

that

•'
in"

two-year

billion

Over

«j

slowdown

almost immediate leveling off
totaU in the increase of weekly average

inventories have been boosted
over

nobody

observers

there

been

consecutive monthly gains m

inventories.

'>.*.

get

labor

new
orders
points to an'early
culmination of the rise in inven-

tories.

•

(1)

/ Some

the

investment yboom'.
take to liihit-rexcessive

mands,:

—

much

downturn?

Despite increasing nervousness,
business thinkiiig today still 'is
largely dominated by the thought
;

Labor

existing

out

wage-.pact of gny

that

the

•/;

will

doubt

continue.

pushing hard

are

How

•

"iation,

Factors io

little

shortages. ^

the

year.

1957 EDITION OF

leaders

early ^the 'most

confidence,

statistics.

1957.

THEPRESS

There is

fair-sized gain

consumer

Much

Gross

and

rise

has

National

continued

will

creases

change

be„ attitudes greatly.

The

over

This
A 1,600 page book

containing 9,200

the

listings.covering

all United
arranged geographialphabetically, and are
comprehensively detailed:
Name under which
business is conducted and date

and

Canadian

cities.

Listings

are

cally and
Firm

even

speed

downard

General Character
of Business & Class of Securities
Handled

Names of Partners

Officers.

Names of Department
Heads

Sl°NkA EsXCrf""lge <ind Associati°n

Memberships (including

Phone Numbers—Private
Phone Connections—Wire
Systems
Teletype Numbers Con

espondents—Clearance Arrangements

ALPHABETICAL ROSTER
of all firms showing city in
they ure located is another valuable
feature.

which

Bound in durable

limp fabrikoid

—$12,0°

other

fair-sized

and equipment

increase

widely predicted.
doubt

will

servers

gladly

stand

for

last year s total

leveling

some

Most

pro

obb 1 y

repetition

even

gradual

off.

evidence

growing

number

years

ahead

Park

benefit

shocking
aged

in-

industries

and

corporate

tendency

promptly.
rate

that

have ample facilities to
propotential demands for sev-

tect

that

Changes in plant
and
equipment spending, seldom
are
abrupt. They are not likely
to be abrupt this
year although

now

7, N, Y.

plant

earlier pre-

up.

would

now

settle

There

that these

now

dictions

projects

New York

boom and

snag

and

has

despite

equal
the

vestment.

although

postpone
promise to

profits
been

experience

profits last
to

not

year

the

quite
rather

that

corpo-

barely
1955

Thus

an-

spending had been

HERBERT D. SEIBERT &
CO., INC.
REctor 2-9570

ment

l°sse.s on savings, lite insurance,
Pensions.and social secur.ty.
Inflation's Comforting

year,

there

Place

postwar

(2) .Plant and Equipment
Earlier this

eral

w°"ld *Pve to,pay a Jarful price
}n the lorm of Purchasing power

in production schedules.

creasing

ENTER YOUR ORDER
TODAY

adjustments

Spending.

including Post Office District Numbers

than

past, because the trend toward

will

Street Addresses,

time

greater inflexibility of labor costs

established

•

This puts the economic key is¬
sue for 1957 into clear
perspective.'

probably-inflation I will

this year, unless there is
shift

tern

btales

•

business

"Tranquilizer"

.■»

exuberance

OFF

by tight money—are the dominat¬
ing economic forces today. " /

own -so

our

demand

funds-r-both

will Federal defensexspending;
ingenuity for getting into trouble Any cut in Federal spending is a
—and it is not even certain that ..very slim possibility,
indeed./
conquer,

than of inflation.

and /the

Government spending

creasing profit-squeeze and, the
persistent^ gap
between
savings

business spending.

potential

Actually, the immediate threat
to the^economy is one of deflation

will

than! offset-any* decline

sig-, more

the

expenditures

consumer

Inflation, Profits and Savings

Up to now, it has been taken
for granted, however, that further
increases in Government spending

> -

still- the

repealed

rIncreased Government Spending

ignore tbent bub and

them"

not
be, ignored
threat, however.

ber-

December
1 9 5 6

the

This,.-prediction ./was based on It consists of twp parts:V(l). how
com-'
assumption that cost inflation serious will the next period >o£
Weakening Boom ;
munity is not counting on. a quick will continue—but; that its thus adjustment turn out to be? and
There
can
no. longer
be,Tany
resumption of the-boom. Ibis doos, ^ar reasonably .orderly pace-will- (2) What can and. will-be done by
•doubt that -the structure oT the
"not mean thatxa ;1957Cdecliner'in ,n«t,be rudely upset by a burst of the Administration and the mode-*7
boom is weakening—-and has been
the Gross National Product,is va •.inflationary, fears.,
-• /;
tary authorities to ^cushion the imweakening for some* time. " But
V

$1
the

change

now

■„.

have

strike

•

new

were

prob-

bigger

Basic i economic Jaws-

would

From Novem¬

billion ;

regard

namic economy

persistent warnings
economist who, special¬

izing in the search for barometric
indicators, had remained unim¬

these

eiately.

economic

Decembe

has evap-

not

bears out the

has just

reported for

;„the

outlook

with

the -economic-

rials.

the

rebound,

steel

Depart¬

merce

1957

potential,

the

nevertheless*, whenimbalances begin to develop

advisable

■'

•

growth

orated.
The run-up in industrial .business cycle-free "millennium^* is' concerned, .a further increase
activity, of last S e p t e mbe r- still is a mirage. We won'tfeon-v... is quite certain., Spending at the
October-November now is inter¬ quer the" business cycle, "as'long-State and local level will rise and

business sentiment. This

brought

was

Uncier

•

that

but

ever

■

•

still

take for trend

lize

belief

the U. S. economy is how dominating investment planning,

in
depends

gets, the longer it seems to
changes to crystal-

omy

pact; singles out deflation as the immediate threat; and finds
as
the most vulnerable factors the increasing

The

continued

swings

contribution

lems, is that the

lessen its im¬

the

tremenaous

"hunches."

only

occupation

regarding the seriousness of

adjustment and what will be done

trend

than

fool-proof

business spending can hardly be worrying is when rising prices no
timing of economic changes that expected to provide an additional longer act as. a deterrent to con¬
I have been able to come up with
upward push to the economy this sumer buying. This type of in¬
after 30 years
of constant pre- year; it-may even fall back mod-- flation is not imminent. It should

prognosed by
nationally known editor-economist, despite diagnosis of weak¬
ening economic boom activity. Dr. Lnedicke poses as the
the next

correlations

models, are
timing of

the

The

Steady, if not

ratios,

economic

man-

Tate—

huge 1956 plant inThis experience, rather

no^-

far,

the

ventory

Feeling

American

inflation-conscious.

Even

TRADING

—

has

rather

not

into

page

complacency about inflation,
a change in this attitude is alm0st inevitable, however, if
the
demands for

and

Bank, Insurance Companies,
Industrials

cost-of-living eicala-

tion

MARKETS

SECURITIES

escala iin in
shattered the

yet

run

FLORIDA

than a potenthe union drive

living

wages

finally

Most

£01.

initial

brought about the in¬
recession
of
1948-49.

Continued

tial-threat.
Cost

the

goods replace¬

slic

Americans, it would seem, actuaiiy i00k at inflation as son.ethi/.g
comforting,

after

consumer

spread

other

fields

are

extended

pensions

such

bond investments.

Experiences

Invest in

other countries have demonstrated

that

the

drive

for

increased

Golden\j Triangle

cod

living escalation—which actually is not so much protection
against inflation as an offset of
past inflation by more inilation—
is almost certain to lead to accel-

erated, if not galloping inflati n.
If a danger
point is reached,
rising prices will no longer cause
buyer resistance but will cause a
speed-up
mate

stage,

Florida''s

buying. In its ultithis can become a

TRADING

DEPARTMENT-

TELETYPE

MM51

wmmmmmmmmmmmmmmm.

ALFRED D. LAURENCE

& COMPANY

INVESTMENT SECURITIES

201

S.E. 1st Ave. Miami, Fla.

Phone: Miami, FRanklin 3-7716

Volume 185

Number 5618

The Commercial and Financial Chronicle

(1107)

Gold Ratio, Dollar's

There is no reason under the sun
why the budget should not berf
cut by $5 billion or perhaps 10% across.the board. There is not a*

From

Recognized monetary economist
declares ratio of our gold slock to
non-gold money and deposits and
purchasing power of our dollar

spepd, try

Monetary

ra-.\

•,

.debt.
..debt.

9.6%.

"The

still

above

the

average 8.6 % for. the years 19151932 during which the range of

yearly
1926

ratios

from- 6.7%

was

10.9%

.* \

y;'.■>

Carlisle Barget-ofi

though that does not

mean

*■* t

•••

■

have the

policy committee. It bi
policy committee. It binds

necessarily that every

1917.

the

But

ratio has fallen copsi lerably from
the one which prevailed when the

already

the Democrats.

Democrat

Speaker Sam

Rayburn

publicly~ that there would be no

announced

property

to jump $6(kthis year,

are

■

"The

highest

time

that

yearly

21.6%

was

the

ratio

1941.

tax conscious.

are

being reflected

This, and

the Hill liko

Republican budget cutters, however, is that

are

not running cottriterto the: President. They

feeling, encouraged somewhat by the President, and par¬

service.

have

issue

that will give

Republican party

has

reduction.

But also in the back of their mincls is their feeling that they

consciousness

such. They feel,

recognition to the

I have written before, that

there has been too little of this.
Of course,

the tendency of the Senate has always been to

Whether he meant that he was opposed to one or was just express¬

store much of the

ing his knowledge of Congress is not known.

Up to the letter

appropriation cuts made by the House.

writing citizens to keep

their work.

bais

Since

shown

This advertisement is neither

a
i

highly persistent

and

■

The

steady de-

offer to sell nor a solicitation of offers to buy
offering is'made only by the Prospectus.
;

of these securities,

any

cling.
"In

effort

maintain

con¬

NEW

March

T^T-P;

1, 1957!'

tinuity in the serira, these ratios
of gold stock «have been,

computed

against the total of time and de¬

1«.

mand deposits in all banks, Fed¬
eral Reserve deposits and notes,
and

Treasury

recent

make

'**%'

$25,000,000

Reports
possible a

currency.

years

more
precise collection of items
against which to compute the ra¬
tio of our gold stock; but such re¬

finement
to 1915.

eannot
The

ratios

carried

back

are

computed probably lower than would be'

the

case

if the data could

fined for the

re¬

1915 Ito date

neriod

is possible for rerent

v»ars

AVi% Subordinated Notes due 1977

un¬

der the current system of report¬

ing

Dated March

Due March 1, 1977

1,'1957

Buying Power and Other Matters
;

"In January, 1957, the purchas¬

ing

power

sured

our

dollar:

index

by the

mea¬

of w^olerale

Price 98.06% and accrued interest

prices (index for 1947-1949—100),
reached the lowest level

record

since 1914, when the F^eral Re¬
serve
.

System

"Related

gold rat'o

was

established.

these

f-Uls

our

purcKasin«y power
pf jmr dollar are the foT1owing
significant it^ms. all r"la.tin<* to
the

and

period, January, 1953, to date:

"The

volume

culation

of money

reached

in cir¬

higher

lev°l

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

than during the period 1933-1952.
Total deposit** in all banks other

than

Federal

reached

R°serve

banks

higher ]«vel: monetiza-

tion of Federal debt
eral

by th° Fed¬
reac*»M

banks

Reserve

The First Boston

Corporation

Kidder, Peabody & Co.

higher level. The building of bank
uncollected

against

reserves

checks and drafts ranched

level.

higher

Goldman, Sachs & Co.

Bfyth & Co., Inc.

Stone & Webster Securities Corporation

The earmarking of gold for

foreign

account

level."

reached

higher

Eastman Dillon,

Union Securities & Co.

Harriman Ripley & Co.
Incorporated

Merrill Lynch,

W»th Am°ncan Sees.

Pierce, Fenner & Beane

Lazard Freres & Co.

Salomon Bros. & Hutzler

(Special to The Financial Chronicle)

GREELY,

Colo.

—

Herman

Wolff is

now

with American Se¬

curities

Co."

1515

Colorado,

Eighth Avenue.

Smith, Barney & Co.

was

shock, to the business element of

present Administration* took? of¬
fice: As of Jan. 28-3T, 1953,'it was
10.4%. *
"

record

to* drop

ticularly his Secretary of the Treasury, that they will be rendering;
him

mem¬

However, it does put the party on record as working for some¬

jump

country and other citizens who

they

see

going to lessen the appetite of

disappointment; indeed,

in their efforts

gainsaying the fact ithht the President's budget

The feeling among

has gone on record as

"difficult

For the Federal Government

into that racket isn't

nobody's business.

•

persistent

It may be that a tutor

Cadillac but it is

steadily,

the squeeze on small business, is

Congress has to

thing constructive and, in the, great game of politics, gives them a

have'been going

or so

There is

keen

the

reductionwithail the surplus Jo go to reduction of the

This is unusual oh the part of a
oft
part of a

Running counter tp the budget

Comfoitfee

billion

Maryland' county, adjacent to Washington,

the Slate of Maryland.

In the field of education

education in these days and times.

82% of which is for schools.

J:; ^,

usiiajly for-more ahd more

Republican Policy

In my

places where

organized and formidable educa¬

education for lack bf funds.

one can miss an

taxes which

ber must*go along.. No Action of the policy committee does this. *

v.,/;Ey;

ratio

the party,

Walter E. Spahr.

w a s

■

holds up,
will be a *

two more

lobby to the contrary, that arty youngster in this country fci

how

The budget reduction demands, though, have been

favoring

for 1933. "The
ratio for 1932
for 1933

The demand is

.that the House

lower/

8.2% ;.that

tion

being denied

can't be delivered to his'home in

heavy mail for ihcreasing the pay of the,postal
employes. They have about-as .effective a lobby
go up against- "'>y"v -l
y -:v *..*."«

•'„*?

.than the ratio

was

it is ridiculous to
say, the highly

*
are

should be put into spending.

some sense

;

"reduction demands* ju$t now , for-example, is a

yearly'ra-

tios, reached
since 1932; and

as hard as it may. One atomic bomb, we are told, will
a country and one will destroy us.
Therefore, we musV
thousand or so bombs and guided missiles so we can destroy*

Agriculture and health and welfare

budget i reduction and

but "budget pruning is
popular thing a Congressman can

appropriations.
r

tio than any. of ;,

the

do.

This

lower

sizable

reduction. >. J.
"Believe it' or. not,
not the most

8.94%

31, 1956.
is

of Dec. 26-.

the enemy a thousand or more times.

around the country are chorusing'

...

gold money
and
deposits
fell

groups

demand' for

all to the good and* if the campaign
doesn'-t lose irts momentum,- there

Hon-,

our

have

urging their constituents to write to th'eir CTohgressmen.
Notwitbstanding the kurce^this.is

Policy's Executive Vice-President,.
Dr. Walter E. Spahr, "thedratio of
our gold stock ' :
;
>
%
to

destroy

.sociation of Manufacturers and variousvcitizens'

tax

nonsensical, for example, than for the military to contend
defend the country agaiilst that alleged might of Russia
The mili¬
tary. has money on hand that it \Hll probably'never, be able to
can

for $44 billion but it can't
possibly do it for $40 billion.

Revolution is undoubtedly too strong, a term but there is trou¬
brewing in Congress over the President's budget. Members.are
being flooded with mail: such" as they have not been on any issue
since that of Joe McCarthy.
I would like to think that it is a
spontaneous outbreak on the part of indignant
citizens, but I-am afraid it isn't that, citizens
being what they are. However, the United
States Chamber of Commerce, the NatipnaUAs-

Economists?
on

that it

ble

Jo west since 1932, and that

According to the
National Committee

By CARLISLE BARGERON

higher levels than in 1932-1952
period have been reached in:
coming' money out of Federal
debt, money in circulation, float,

andgold-earmarking.

big agency in Washington that could not stand a 10% cut without
any loss in its effectiveness whatsoever. The fact is that budget
making in the Federal Government has become ridiculous. What

Washington
Ahead of the News

Buying Power Lowest
Since 1932: Spahr

are

White, Weld & Co.

rer

So it is'

(1108)

E. R.

The Commercial and Financial Chronicle v.*.

Cochran Foil

Lowry Partner

Dealer-Broker Investment

Lowry,

Daniel

with

associated

Lewis

Recommendations & Literature

been admitted
to the firm

It is

understood

that

the

send interested

mentioned

firms

will

tner,
cording to

an¬

parties the following literature:

Lewis,
has

been

gaged

Cyril "Bath

field

Greensboro

items

York 5,
Edward

general

Lowry

the

University

Chartered

Electric
01

Utility

Clement Evans & Co.

—

Current information

—

born

Delta

Theta

member

Public

the

Air

A. Cerone

figures—G.

Salle Street,
New York and

the

120
on

with

David

Central

Street, members

Also

of the New York

Exchanges.

CO.,

available

Electric

Co.

Mercantile
is

—

Bank

Building,

memorandum

—

Dallas

Tennessee

Texas.
Trans¬

mission.

Central

—

Bulletin

—

Bache

Co.,

Finance

Company—Analysis—Troster, Singer

Trinity Place, New York 6, N. Y.
Debentures

Co.,

due

1976—Report—
Street, New York

Wall

—

Memorandum

Ill

Richard Bruce & Co., 26

Transamerica

Corp.^Discussion

United
Wall

better.

issue

current

ings"—Francis I. du Pont & Co., 1
5, N. Y. Also in the same issue is

Street, New York
list of stocks yielding

"Glean-

Wall
a

/
.

)

Fruit

Company—Report—Thomson
Street, New York 5, N. Y. <•

Wachovia Bank & Trust

McKinnon,

Company—Analysis—R.

;

S. Dickson &

Co., Wilder Building, Charlotte, N. C.

With Rodman & Renshaw

Joins Hemphill, Noyes

(Special to Thc Financial Chronicle)

(Special to The Financial Chronicle)

CHICAGO, 111.—Robert J. Rob¬
erts

connected

now

Renshaw,

with

209

Rod¬

South

Salie Street, members of the New
and

Stock

Midwest

J
' -

;

BOSTON, Mass.—John
Jr. is

now

D. Ames,
connected with Hemp¬

hill, Noyes & Co.,
Square.

10 Post Office
:

Ex¬

2 With

changes.

Hornblower Weeks

(Special to The Financial Chronicle)

With

Rauscher,

Gas

Lewis

Inc.—Analysis—John R. Boland & Co., Inc.,
30 Broad Street, New York
4, N. Y.
'

'■

Memorandum

TMT Trailer Ferry,

York

Street, San Francisco 6, Calif.

Louisiana

Pierce

Inc.—Review—John

Corporation,

Co.^

Co., 45 Mont¬

Co., 44 Wall Street, New York 5, N. Y.

Airlines,

Co.—5%

man

Witter

Company—Analysis—Bruns,

Street, New York 5, N. Y.

Broadway, New York 4, N. Y.

Bros

report—Household

Story—Analytical brochure—Hemphill, Noyes & Co.,
Street, New York 5, N. Y.

York

5l/2%

Associated Dry Goods
Conn—Bulletin—Peter P. McDermott &

C. Robar

Noyes & Co., 208. South La Salle
and Midwest Stock

Co.—Analysis—Sutro

Corporation—Analysis—Dean

gomery

(Special to Tiib Financial
Chronicle)

connected

Electric

Railroad

Banknote

Gas. Co.

Noyes

CHICAGO, 111.—James

Manhattan

Stanley Aviation

Broadway, New York 5, N. Y. Also available are data
Cleveland Electric Illuminating Co. and
Brooklyn Union

Ampex

Joins David

Gas

Conklin

Shield Bantam Co.—Memorandum- -First
Securities Corp.,
Corcoran Street, Durham, N. C.

Company/.

•

American

Corporation—Annual

Securities

•

Company—Analysis—E. F: Hutton
Broadway, New York 6, N. Y.
*
'

Witt

5, N. Y.

New

Finance

Leslie

13-year period —
Front Street, New

Stocks—Comparative

Corporation, Room 3200, Prudential Plaza, Chicago

Security

Reduction

Cruttenden, Podesta

Midwest Stock Exchanges.

now

Common

•

& Co., 209 South La
members

Co.,

—

Also avail¬
Century Food Markets Company.

York 6, N. Y.

York—Report of the Governor's Committee
on the
Marketing of School Bonds—Governors Committee on
Marketing of School Bonds, 655 Madison Avenue, New York
21, N. Y.

(Special to Thk Financial
Chronicle)

with

market performance over
Quotation Bureau, Inc., 46
4, N. Y.

Utility

bulletin

Mercury Television Manufacturing Corporation—An¬
alysis—Aetna Securities Corporation,- 111
Broadway, New

Saxton & Co., Inc., 70 Pine
Street, New York 5, N. Y.

With Cruttenden, Podesta

now

and

Schools for

Church of At¬

CHICAGO, 111.—John

Bulletin

—

Pacific

—

National
York

Phi

and

Fraternity

First Presbyterian
lanta.

yield

Inc.

Street, New York 5, N. Y.

Pioneer

Lubetkin

memor¬

Co.,36 Wall Street,
York 5, N. Y.
Also available are bulletins on Garrett
Corporation, Acme Industries, National Supply and Warner
Lambert.
|
'

Yamaichi Securities

Averages, both

University. He
recently completed a three-year
tour
of
duty with the United
States Navy aboard a
destroyer
is

—

Investing Corp., 80

Also available is

New

Co.,

Over-the-Counter Index—Folder
showing an up-to-date- com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
used in the National Quotation Bureau

Chatta¬

Vanderbilt

tender. >He

New

in Natural Gas Stocks
Analysis — Vilas &
Hickey, 26 Broadway, New York 4, N. Y. Also available
is a comparison of Income Rail Bonds.

nooga, Tennessee, and holds an
A. B. Degree in Political
Science

from

Wall

1957—Bulletin—Harris, Upham & Co., 120

Opportunities

office.

was

Smith

Union

Broad

National

Stocks—Analysis of outlook—Seligman,
30 Pine Street, New York
5, N. Y.

Company, Inc., First Na¬
Building, announces
that Arthur A. Paty,
III, has joined
Paty

Oil

Clement A.

Bank

Mr.

Co.,

Broadway, New York 5, N. Y.

Evans &

their Atlanta

Co.,

Corporation—Analysis—Unlisted Trading Dept., Rm. 707,
Haupt & Co.. Ill Broadway, New York 6, N. Y.

Ira

Broadway, New York 6, N. Y.

Market Outlook for

tional

Knox

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

Adds Paty to Staff
ATLANTA, Ga.

Gundy

Stocks—Circular—Zuckerman,

Japanese Stocks

Motorola

Canada—Analysis—Wood,

Products

Nordeman & Co., 52 Wall

describing industrial resources and
O. territory—Chesapeake
&
Ohio
Railway, 3809 Terminal Tower, Cleveland 1, Ohio.

investments.

Hudson

"Chessieland"—Brochure
opportunities

Corp.—Report—General

1, Illinois.

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

University of Pennsylvania, Mr.
Lowry has
had
experience
in
manufacturing and
taxation
as

Finance

—

Company—Study—L. B. Schwinn
Building, Cleveland 14, Ohio.

Galion

Household

Banks

Cuba—Memorandum—Oppenheimer

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

able is current Foreign Letter.

Street, New York 5, N. Y.
on
Lake Shore Mines.

able is

Monthly investment letter — Bu.rnham and
Company, 15 Broad Street", New York 5, N. Y. Also avail¬

Tennessee and Wharton School of
Finance
and
Commerce
of
the

well

View

Railroad

Credit

Hercules

N. Y.

Burnham

partner.
Educated

carriers, official AEC estimates of uranium

Stocks—Comparison of 21 leading bank stocks outside
New
York—Laird, Bissell & Meeds, 120 Broadway, New

report—Commer¬

andum

Bank

Johnson is the
third

Wall

for six

program

Foundation

since 192 2.
Marshall

expanded atomic power

including Euratcm, naval

supply, South African uranium ore reserves,
Newport News Shipbuilding & Dry Dock Co.
Company of Canada—Atomic Development
Mutual
Fund, Inc., Dept. C, 1033 — 30th Street, N, W.,
Washington 7, D. C.
and

the

investment

banking
in

Equitable

and

en¬

aircraft

demand

who

(No. 25)—Comments

abroad

program

atomic

McDaniel

Annual

Co., 25 Broad Street, New York 4, N. Y. Also available
memorandum on Virginian Railway Co.

Commerce
Atomic Letter

Company—45th

Company, Baltimore 2, Md.

ac¬

ouncement

Credit

Creamery Package Manufacturing Company—Analysis—Boenning & Co., 1529 Walnut Street, Philadephia 2, Pa.

pleased

general

pa r

cial

Consolidated

Mc¬

Co., Jefferson.
Building, since last November, has

Commercial

GREENSBORO, N. C.—Edward

Co.—Memorandum—Doyle, O'Connor & Co., 135
Chicago 3, 111.

South La Salle Street,

In McDaniel Lewis
.

Thursday, March 7, 1957

Clayton Sees.

BOSTON, Mass. — George T.
Burke, Jr. and John E.-O'Donnell

(Special to The Financial Chronicle)

are
j

PORTLAND,

Me.

—

Philip

Derrah has become affiliated with

now

associated

with

Horn-

blower & Weeks, 75 Federal St.

Clayton Securities Corp., 443 Con¬
gress Street.

With Investors

Planning

;

(Special to The Financial Chronicle)

This
as

Stock

having been

matter

record

placed,

this

appears

DEPENDABLE MARKETS

BOSTON, Mass.—Isaac R. Brown

..wsh.w: L-

is.

(Special to The Financial Chronicle)

only—

LOUISVILLE, Ky.—William R.
is now with W. L. Lyons &
Co., 235 South Fifth Street.

now

with

Investors

Planning

Corporation of New England, Inc.,
68

Devonshire Street.

Lyon

12,000 Shares

Pioneer Finance

(Special to The Financial Chronicle)

Schirmer, Atherton Adds

Company

PORTLAND, Me.
Littlefield

$3.55

per

Atherton

Company's business is financing mobile homes. It is
encaged
exclusively (at present) in discounting,
principally from dealers,
installment

notes

receivable

by chattel mortgages,

etc., on

funds

their

dealers

Mobile Homes

is
&

financial paper secured
mobile-homes as well as

Aubrey L.
Schirmer,
Co., 634 Congress St.
now

Life

interest-hearing demand

loans

(on

subsidiary and has just
Company which for
insurance exclusively." '

may

Analyst

Stock

TROSTER, SINGER &

CO.

4 years

Incomplete?

Exchange Firms

Bound

Sets

of "CHRONICLES" of

Various Dates From 10 to 50 Years

Magazine of Wall Street

Excellent References

Trinity Place, New York 6, N. Y.

Box

C-37, Commercial

Financial Chronicle '

Teletypes NY 1-376-377-373

Annual

Available in New York

Members: New York
Security Dealers Association

Daniel Verges

A Number of Beautiful

Writer

be obtained from:
15 years' experience with N. Y.

2-2400

and

"FOR SALE"
Editor

Six

AVAILABLE

■

nover

with El Paso Management Co.,

Mining Exchange Building.

Are Your Records

■

if A

Homer
are

notes,

Insurance

information

—

with

SPRINGS, Colo.—
Antzas, Roland V. Douglas,

advancing

own

the present "will handle credit
life

further

Peter

DEMPSEY TEGELER & CO.

and other

secured by mobile-homes. Pioneer also
makes small
mobile-homes)
through its Florida

organized

COLORADO

(Special to The Financial Chronicle)

Common Stock ($1.00 Par)
at

Join EI Paso Management

Park

Place, X. Y. 7, N. Y.

Phone

REctor

2-9570

City—Write

Edwin

Beck

c/o Chronicle, 25 Park PL N. Y. 7

Volume

Number

185

5613

The Commercial end Financial Chronicle

(1100)

lack

33%

field.

credit

truck

and

truck

increased

financial

available to finance manufacturer and

will

institutions

needs

user

the

truck

users,

financial

trucks

sound

lack

shall

course,

that

see

comparison

not

available

absolute number, but declined
35% to 27 % of the total in
the period considered. The
from

Table

Public

growth

7
5

made

Business

in farm productivity in
postwar period, despite a fall¬
ing farm population, has been

1944

1956

the

Utilities,^.

Personal

great

ft of Trucks

Mining and Manufacturing,,
Governments
and

possible by better use of
machinery, in which trucks play

Insti¬

tutional
and

Trade

For-Hire

Construction

specified

con¬

for

larly in the
study of the

entering into financing arrangements for various truck classi¬

Perhaps

Studies

data—1956.

the

portance

distribution

nation's

exceeded, I think it is fair to say,
n

the

fondest

hopes

context of the others.

ested

the

Great

cade

following 1944,
miles

the

ton

freight
by

carried
Class I,
III

II, and

carriers

property
181%,

that

truck

closely

moves

points approach

level

the

Product.

continues to expand,

economy

truck

use.

the production and distribution of

nearly

million trucks

one

all

1957. Within the next

rose-varieties in

their
may

product will probably exceed $500

rose

total

innr/a!QR<7eRvreiQ^tiVth^
and 498%. By
19oo, this
railroad

Qt^v
it

l...

com-

revenues,

level at which

approach

this

V18 folition of look for
poverty.
level, we can

toWs

growth of trucking far better than

knowledge

nitude
evident

indicative of the mag-

million

also

the basic truck popula-

less

while

that

tion:

which

increase,

were

than

operation

social

Thp

million

Based

challenge.

very

any

certain

truck

all

and

comprehend
but
rather

in its entirety,
in
bits and
pieces. Following the ribbons of
roads, trucks have brought the
sands

and work

of life

means

thou-

decentralized'com-

new

munities, where life and work are
pleasant, where there is room to
live without congestion. There are

communities have

These

con-

a0Y

the

wtnL "

UUSliTlCSS

truck

Each

user

J? V*methZS*
ltS OWH ITlCtuOClS^

US6S

problems

0wn

and

lowing table distributes the truck
us

see

j10W

by business use. Let
+he

credit

needs

created

can

access,

literally

large, and healthy truck industry.
•

Projects 33% Increase
Most of

trucks

while

and

ferences

challenge will be

met.

Credit Challenge

Xhe

the

machine, used to
men,

dif-

business

mountains,

and goods. The effective use

business

move

machinery,

including

trucks, involves problems of man.

agement, maintenance, personnel,
*An

address

Dr. Rolfe
Conference,

National

Truck

Miw'^
1 I.C.C.

estimates,

rier
44

before

the

Dearborn,
*

from The Motor Car-

Industry, a study by Shields &
Wall street, N. Y., 1956, p. 9.

class,

annual gross revenues of

retail

and

used here,

are

depend¬

understanding that

will

reserved

for

grossing $1 million
total
much

this

those

group

Source
What is the

are

of funds for

equipment in this young giant in¬

One authoritative report

dustry?

Continued

broad.

page

oj securitiesjor sale

or a

solicitation oj an ojjer to buy securities.

March 6, 1957

$40,000,000

Texas Eastern Transmission Corporation
Pipe Line Bonds, 4%% Series due 1977

credit has been available for the very growth of truck

Price 99'/2%
plus accrued interest from

March 1, 1957

undersigned {who

may be obtainedjram such oj the
the underwriters named in the prospectus) as may

Copies oj the prospectus

these securities under

are among

legally ojjer

applicable securities laws.

$5 billion of credit for truck pur-

Co.,

1956 alone
credit was

$606

some

by sales finance companies,

and

25% of all domestic truck sales
are

based
.

on
.

miprht

rapidly

Dillon, Read & Co. Inc.

extended

The First Boston

Corporation

Kuhn, Loeb & Co.

this credit.
,

PYnprfpri

growing industry, credit

Blyth & Co., Inc.

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

problems for truck purchase have

arisen in

—cases

lems

few—surprisingly few-

Goldman,Sachs &Co. HarrimanRipley&Co.

were

part

and parcel of the

whole problem of

growth> invoiv_

fag

management,
Other

noted

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

Smith, Barney & Co.

capitalization,

and

Kidder,Peabody&Co. LazardFreres&Co.

Incorporated

in the past. These prob-

factors

earlier.

Nevertheless, the focus of concern
'
„

...

Sometimes rested On Credit to an
unwarranted degree.

The

course

Funds

source

The fact is, of coarse, that in

fleets

or more.

smaller, approximately 800.

Normally, trucks in this

lightweight (or
panel) vehicles, for which depre¬
cation i« predictable and the sec¬
ond-hand
market
well
defined

First Mortgage

of Jan. 1, 1957, Class I designation

and similar ..consid¬

the user firm

and

It is my

now

in 1944.

categories

impossible.

yet

•"We

supply within bounds
has
not
prevented

approach

confidence
grow

that

future with
country will

to live and to work,

with full knowledge that our

and

standard

living

rates
ever,

and

borrowers

not permit ourselves the lux¬

cycle has been cured for all time.
We

that the lower disbe applied only in the

will not be tempted

Loeb

We will continue our

Gerald M. Loeb of E. F. Hutton
&

New

York city

will be

c.mir

£uest on the Mike Wallace S
"Nightboat" March 7th at 11 p.m.

investment

safety

policy

The writer contends that available funds for these purposes can
be increased

est

yield

from

our

investments

consistent with safety."

Equipment Trust of 1957

without jeopardizing

general credit
would like to sugdevice that might be

the effectiveness of

restraint, and
gest

one

5V29c

this

over

not limited to

situation

disgruntled prospec-

borrowers

politicians,

present,

(Philadelphia Plan)

which

are

members of the Federal

engaged the attention

borrow funds
for short-term purposes from the

reputable economists. Professor
Sumner
H.
Slichter of Harvard

mature

Federal Reserve banks at the current discount
rate
of 3%.
This

but has also

nor

University,
the
out

that

lett:r to

recent
"Times"

York

New

pointed

straint

policy cf credit re"instead of being a tern-

porary

policy

few

our

likely

months

for only a

use

operation most of the time during
the foreseeable future."
Professor
cates

that

need

Slichter's

indi-

fully recognizes the

retain

of credit

letter

our

restraint.

present policy
He points out,

however, that credit restraint has
borne
lors

unevenly
our

different

economy,

sec-

and that al-

Equipment Trust Certificates

banks

commercial

?89,000 annually March 15, 1958 to

1972, inclusive

Reserve System can

rate,

the

highest

rate

„

for

such

To be guaranteed

Priced

loans in over 20 years; is part and

parcel
credit

our

policy

restraint.

other

general
words,

the discount mechanism, like reserve requirements and open mar-

operations, is being utilized
general instrument of credit
policy to put a damper on the
total volume of credit. The Federal Reserve banks have never attempted to use the discount mech-

The

icy

by endorsement ly

yield 4.75% to 5.50%, according to

of these Certificates are subject to authorization by the Interstate
Offering Circular may he obtained in any State hi which this announcement is

such

of the undersigned and other dealers as may

maturity
Commerce Commisdom

circulated from only
lawfully ojjer these secuiilies in suets Slate.

HALSEY, STUART &. CO. INC.

anism in any manner except as a
general instrument'of credit pal¬

unconditionally as to payment of par value and dividends
Chicago and North Western Railway Company

Issuance and sate

ket
as

DICK &. MERLE-SMITH

FREEMAN

&,COMPANY

February 28, 1957

principal, and to secure the high¬

Chicago and North Western
Railway Company

without sacrificing the benefits of
general credit restraint?

profit.

fundamental

$1,335,000

present,

can

with the

heavy tides of speculative

The

end.

these

for

life

of assuming that the business

ury

for which
rate
would

funds more

secure

thev

than

easily

possible

our

We will, how¬

will increase.

span

pur¬

the
our

and prosper, that it will be a

better place

used for this end.

Concern

tive

w^e

growth.

are in a competitively
oisadvantageous position to secure
the needed funds? Or can a meth¬
od (or methods) b° found which
win

and

The .monetary pol¬
icies of the past year have held

past periods.

purposes

able

after

comparison

who wish to secure funds for these

certain

worthy

world

the

rest

worthy projects at

for

prospective borrowers

because

funds with relative ease, funds for

infla¬

the

restraining

tionary expansion of credit fe:f
they have been our principal de¬
fense against rapid inflation.

would suggest
rate

Viewer

prices, the persistent erosion of
our people's savings which threat¬
ens to destroy the very incentive
to save," Mr, Vieser said. "We ap¬
plaud the action of the Federal

Gerald M. Loeb to

Millord

borrowers

apply, should ba stated explicitly
in
the
regulation.
The
writer
count

rise

tinned

purposes

discount

be¬

today is infla¬
tion, the conA

would have to
regula¬

this

major

problem

be exercised in drafting a

fore the nation

bank loans.

Exceptional

Boca

economic

without increasing the total

volume

meet¬

"The

availability

specified

the

Asso¬

March

purposes,

be'made

Raton, Fla.,

The,.differential be¬

enhance

poses,
.

other

o m

annual

available

credit

Co.,

meeting

.the

Agents

ahead. '

any

Mutual

ciation at their

them

measures

bersome

financial

the

for

pany's General'

utilize

rates

passage

would

the

of .credit

Involves Public Policy Issue

daily

tween

institutions.
.

banks

should

generally

told

special

certain

higher rate.

gbie to afford the

Hgh cost of those funds, but also
brcaus* the cost of doing business
with them is lower, their credit
standing

the

make

however,

because

merely

not

also

for

drastic

A. Vieser,

Life

Insurance

specified, socially de¬
sirable purposes.
Loans to mem¬

firms are in a fav0red posi-

institutions,

without

utilize

,arge and smaU es,ablished bus!"
tion with respect to

could

discount

several

is infla¬

nation

Milford

Benefit

which these banks, in turn, would

In a perlod of credit stringency'

funds from lending

tion,

problem

economic
today

major
the

Vice-President

satisfactory fashion.

special
enabling
legislation.
If
this-policy were adopted, a lower
discount rate might be used for
lending to member banks funds

Professor

made.r by

pcint

The
before

the

urging that consideration be
to this device, the writer
like to point out .that the
problem of obtaining credit for
some important, socially desirable
purposes has already become
acute.
Mounting
dissatisfaction
with general credit restraint is ac¬
countable
in
large measure for
recent proposals that the nation's
financial system be made the sub¬
ject of a broad investigation. Un¬
less relatively simple but effective
devices, such as the one proposed
here, are adopted in the very near
future, there will be strong pres¬

selective instrument of credit pol¬

Upgren's argument does not constjtute
an
adequate
rebuttal of
the

banks

differential

rise

No Enabling Legislation Needed
Reserve

believes that Dean

stake,

volume.

would

The differential pertaining

without

present writer, equally conwRh the fundamental is-

SUGs

otherwise be

given

one

The writer believes that Federal

mounting

restraint

such

they

to.

clients

the

with

rates

interest

pertaining

fered.

pojnt 0f view.

has

Professor

rapidly, leading us first
severe
inflation, which in

time would

rejoinder

another differential

discount

't'uck

School of Business Administration

giichter and

increase

into

cial enabling legislation preceded

long afterwards, aneconomist, Arthur

very

enable

would

for certain purposes.

ential

eminent

rising

flat lonary

Fishman

Leo

;

banks, have

still in effect. The passage of spe¬

Slichter,
policy has arguing that any prospective borproved to be rowers can afford to pay the high
an

Reserve

and collateral offered*

Not
other

not

sufficient

should'be competent to meet

—

ing with respect to size, duration

straint.

construction

give

haye^been applied to loans differ¬

t h i rt-ially desirable purposes, such as
has those
which have been noted

credit

ex¬

the past used differential discount

though we cannot measure the
rates
impact of credit restraint adetime
quately, there is some, evidence-

above.

ample credit is being made avail¬

credit

have also been used.)

the

dure,

instruments

Vs, Federal

time>that»it has resulted in a scarcity
fu- of funds for certain important, so-

some

into

would

ad¬
policy. — such as Regulation W ministrative
problems,
none
of
governing
consumer
credit
and these is likely to prove insoluble,
Regulation X governing credit for and the Federal Reserve banks

credit

Selective *

measures

of . general

different borrowers.

Moreover, for each of the

credit

new

executive

nation's ma¬
jor economic problem and ap¬
plauds Federal Reserve restraintpolicies.
depicts inflation

specified purposes, the lower dis¬
applied only

Life

Benefit

Mutual

suitable de¬

a
selective instrument lower discount rate should not be
policy is the regulation employed.
of margin requirements.
Within
While administration of such a
fairly recent years several other regulation would
undoubtedly

proposed simple

drastic and cumbersome

One

purposes.

As Threat to Nation

count rate should be

that

particular

ample
of

pre-determined specified desired pur-

Professor Fishman

rate.

Vieser Sees Inflation

pur¬

able without this inducement,

admin¬

customarily met by commercial banks and only if such
credit is unavailable in sufficient volume set by the higher

desirable

for

poses

of other

vices.)

socially

available

increase total volume of bank loans,

nor

ulti¬

they are de¬
signed to regulate the use of credit

policy to

economist holds that this would not lead to insoluable

istrative

means

policy differ from general

instruments

modi-y and implement general credit restraint, West Virginian
.

would

might be made possible by

poses

credit

(Selective instruments

credit

utilize differen¬

can

other

for

their

which

funds

be used for undertakings

customarily financed by commer¬
cial banks.
(Availability of loans

permits them to

instrument

case

mately

have

discount mechanism

selective

banks

advantage!

Reserve Act also

Contending Federal Reserve banks legally

Before

in this respect, the Federal

powers

Virginia University

West

Reserve

taken

never

By LEO FISIIMAN
Professor of Economics and Finance

Used

Rates

reading of the Federal

Reserve Act reveals that although

Modify General Restraint

(1115)

The Commercial and Financial Chronicle

R. W. PRESSPRICH &. CO.

McMASTER HUTCHINSON

CO.

(1116)

The Commercial ami
Financial Chronicle

mates

THE MARKET... AND YOU
By WALLACE

indicate

this

year's
level, but indicate that

record

the

STREETE

stock

largely

market

was

listless performance

again this week. The seeming
of
the
Egyptian
impasse did little to hearten
settlement

the market and

ful

issues

only

hand¬

moved

way with any

either

real conviction.

In
the
process,
however,
the industrial
average worked
well into the overhead resist¬

better

results

Rebuts

last

over

Tremendous

growth will continue

its

items,

missile

work

optimism tempered

that

was

added,

prices is subnormal. Its

$2.40 in 1955 for Brunswick-

growth

Balke, concrete evidence that

pinspotting ma¬
bowling alleys is
gaining widespread accept¬
ance.
The company entered
this year with a larger back¬
log than a year ago, although
few

the

forecasters

are

still

greater

general

to lift the list out of its
gen¬

eral

settle

around

generally

turbine,

ble

for

this

ance.

Good-Yielding Utilities

gear

situation,

bit,

particularly since a spring
rally could be in the making
as
long as there was nothing
in the news to
inspire any re¬
newed
selling.
Auto Business
A

Key

good bit of the stalemate
due to caution

was

sales and the

auto

over

signs of

tradi¬

tional

little avail

far. To

consid¬

erable group

of market stu¬

dents,

the

events

could

economy
for the

turn
term

this

area

call

market's

that

performance.
*

What it will take to lift the
rails out of their rut wasn't
clear. This section of the list
has been a
drag for months
and whenever the rails
came
to

the fore it

brief

was

usually
and

appearance

were

back in the

soon

without

developing
low-through.

fol¬

to stand its

was

able

ground well. The

issue, however, is far
to its low than

to the

closer

peak it

reached last year. In
Dart, the

buying in it

was a

acquisition

by Alleghany Corp.

which held

on
independent strength,
including one session as the
only new high on the list.
Nevertheless, it was available

Persistent

Oils, too, were still held in
high regard in many quarters
even

when the

general

kept their earnings
uphill climb, notably

Oil

Ohio

leader in

one

rail

recent
prices some 20
points under last year's
high,
Standard of Ohio also was

something of

segment

between

Buffalo

the

system,
and

the

Cleve¬

management
mate is that a return
of
be realized

can

ment. Central

the

that

issue in the oil section
with

ing

esti¬

78%

its invest¬

expenses.
*»

member of the oil

last

ly watched

all

was

year.

able at

being close¬

the

specialty

planning

gener-

Armand Chandonnet

marine

refutes

today's

eco¬

eters

the

future

economic

health of the

gener¬

barometer

our

expansion shows

the

bine

national

gross
our

long—a

product.

manufacturing cycle

year or more—our tur¬

business

dicator
basic

"Our business," Mr. Chandonnet
said, "is one of the best barom¬

one, two or three

"Because

pessimists.

expansion,

basic
about

business,

and

pulsion equip¬
field

the

years before this

pro¬

when

optimistic

reflected

ap¬

that
are

future

industries

in¬

accurate

growth

the

serve,"

added.

Mr.

Chandonnet

said

that

the

department has just completed its

has

fected

other

orders

for

importantly if the B-52
is phased out. More¬

indicated for the company not

only for this
the future

year

but

into

well.

increased

Burroughs
where

case

4M>% yield at

earnings can be
better 1957 per¬

reaching volume
of its

some

pro¬

newer

push

not

On That

demand

that

spilled

from International Busi¬

Machines

where

re¬

official

stage. Projec¬
Burroughs indicate a

increase

portant help to the company's
account.
| The

article

views
do

not

coincide

expressed

those

this

necessarily

profits

with

the

those
are

presented

of the author only.]

in September, 1953, it did make a new low, confirmed
lows in the Rail Average also. "Thus, a classic bear market
signal was given precisely at the moment that the great bull mar¬
new

ket

was

about to begin."

Now again:—for the past 16

months, there

was

another trading

of 10%, a top of 500 and a bottom of 460. Last month the
Rail Average again made new lows first
and again the Industrials
range

finally broke out of the trading range on the downside,
confirming
the bear market signal of the Rails—"and
again the market jumped
back up inside the old
trading range."
#
Here,

however, Bernstein-Macaulay would have the analogy
based on value determinants, they do not expect an
early bull market resumption.
end.

Now,

Foreign Economic Aid
The

the Fore

promulgation of the Eisenhower Doctrine

well

the

Fairless

Committee's report Tuesday, with its
blessing on our
existing foreign aid programs, will shortly be renewing the contro¬
versy over STJNFED (Special United Nations Fund for
Economic
Development), the project for expanded UN aid for underde¬
veloped countries which has been "hot" for at least three
years.

This will be particularly true if it
develops that funds under the new
Eisenhower Doctrine's plans are to be used for
regional develop¬
ment instead of merely

increasing the present bi-lateral

programs.

Following the resolution passed by the Economic Committee
Assembly three weeks ago, the Ad Hoc Com¬

of the UN's General

mittee

which

the

matter

possible organizational

Joins Hegeman Staff

Social

Council's

meeting here in

was

referred

for

the

patterns to be submitted

meeting

Geneva

drawing

the Economic

July,

will

begin

few weeks.

In any event, the SUNFED's anomolous and
generally unsatis¬

fSpec'u! to Thk Financial Chronicle) v

higher ; ' STAMFORD, Conn:—Joseph
regularity. In fact, Sheehy has leaned the staff

only do the company esti¬

:<c

any

"ChronicleThey

an¬

Bernstein-Macaulay Inc., financial consultants, we are in¬
debted for citing similarities between the stock
market's obtuse
"technical" gyrations in 1953 and 1957. Between 1951 and
1953 the
D. J. Industrial Average
repeatedly but unsuccessfully tried to
break through the upper and lower limits of 290
and 260.
After

and

Redemption Worry

"Technical" Obtuseness

shipments

even
approaching
goals would be an im¬

such

Fund

News that mutual fund
holdings by labor unions have recently
tripled, and by corporate owners doubled recently, should miti¬
gate the l'ears voiced concerning the possibility of bear market
fund share

Anything

Issue With

company that has been

with good

•

Corp.,

for double that next
year.

are

time

Thompson Products

a new major study is currently needed about the
relationships — particularly in the light of tax and
stock-diluting factors.
'
1
:

thoroughly in profit

Romance

Perhaps

10%

hne with other
companies in
field.
A Growth

basis."

•

debt-stock

this year and some estimates

recent

•

two years,

2-for-l

late

•

the
formances, particularly since
the company is only on the
among

tions for

avail¬

Co.

redemption-stampeding.

in the
electronic computer field, is a

been

page

❖

erably when it reached the

eight points

from

jet

over, its missile work is just
nearing the production stage.
As it sits, higher earnings are

ness

Continued

tankers that would not be af¬

bit

group. The

desta &

transports stretch to 1961 and

the

were

eries into the 1958 fiscal year.
on
one
of its jet

Deliveries

over

last year

has

prices which is

able

Earnings

held

dividend

other
*

said

through deliv¬

items. It has also benefited

consequently is

doing most to defeat
bugaboo, high operat¬

stretch

Mississippi River Fuel is puted large division of the
something of a neglected sharps slimmed down consid¬

forefront of the lines

are

the rail

that

industries

turbine

the

manages

power generation

merchant vessels.

ally

t i

in¬

expansion

equipment, at the Lynn River
works, for public utilities, manu¬
facturing firms and naval and

the

business is extremely sen¬

books

duction in

well-deflated

controlled

Chandonnet

up¬

paratus

brink of

something despite the fact
that its earn¬
adapting elec¬
ings have been
growing
operation. On
steadily enough so that the

electronically

land,

which

able last year to cover its
dividend rate two times over.

range of less than

mar¬

of oil has

stock

: ■

Popularity of Oils

tral has

also been

Mr.

manufacture of

power

ment

program

5% yield basis.*

15% of the issue
in the latest
tabulation. Cen¬

tronics

promi¬

yield of nearly 5%.
follow-the-

leader proposition
sparked by

the continuing
the stock

somewhat

was

nibbling in

N. Y. Central which

which

Standard

Central
was some

still avail¬

yields of 5% or better,
including Kansas City Power

Awakening Interest
There

was

able at

they ket was in jeopardy. The
wings steady annual growth in use

any

industrial
nation-wide."

foreshadows

surge"

nomic

diversified nature

"tre¬

usually

mendous

in favor of a smaller
and faster bomber, specific¬
ally one made by General
Dynamics' Convair division.

ume

the nent

near-

this

indicates

nation, and our busi¬ best peacetime production
satisfactory yields running up
year.
than the prime aircraft mak¬ ness is at an all-time high.
The Peacetime employment is at an
to
around
6%
in
Dayton
prophets of economic doom have all-time
ers, including the romance of
high, he said, and the
Power at recent levels, most¬
evidently overlooked this impor¬ department plans for a
$9,000,000
tant business indicator."
ly showing the pressure of its atomic-powered submarines.
capital expansion program this
#
*
*
recent financing. The
year.
rights
60% Higher Output
There were, however,
disappeared from the list last
He said his own
department's
week but so far the stock has many who thought the disap¬ scheduled
Joins Burton Vincent
output both for 1957
shown little rebound as would pointed selling in Boeing was and 1958 will be close to 60%
(Special to The Financial Chronicle)
than
last
year's record
be normal at the conclusion being a bit overdone, partic¬ higher
CHICAGO, 111.—Edward P. K.
peacetime output.
ularly since the company still
of such an operation.
Hade, Jr. has become associated
"Our experience in the
is working on a program with
power with Burton J. Vincent &
*
*
*
Co., 105
generation field over many years South La Salle
Street.
He was
orders still around the $2 bil¬
has proved that the
A rather
turbine-gen¬ formerly - with
long list of good lion mark. The orders on the
Cruttenden, Poerator

spring upturn were be¬
eagerly sought but to grade utilities

ing

to three years,

one

crease

Lynn,

Mass., said

gram

much

ranks of the pessimists

and

depart¬

ment at

started when the government
indicated it might shift from

naturally lifted General
Utilities have been in
That progress of
any sort
could emerge from such dol¬ steady, although not sensa¬ Dynamics to the fore, partic¬
drums whittled down the tional demand, but still offer ularly because of the firm's

gen¬

erator

were

pro¬

possi¬
year's perform¬
as

lethargy.

manufacturing, and that

man¬

of GE's
medium steam
ager

clouded

Chandonnet,

Aircrafts Clouded

Aircrafts

spokesman.

Armand

market attention.

for

Company

obviously,

have commanded the

the automatic

chine

qualities,

this achievement failed

in turbine

including the rather
Forecasts being made
by "The sitive
to
national
Thompson has been popular prophets of
economic
economic doom" were
startling improvement of
trends," he declared, adding that,
enough so that its yield at re¬ challenged recently by a General "an
better than $6 a share against
increase in our business vol¬
Electric
cent

ance
area, which was mildly predicting that the profit will
Boeing's B-52 bomber as the
heartening. The fact that kept show a similar fat gain. Most backbone of the
defense

even

Thursday, March 7, 1957

Armand Chandonnet that there will be
an increase in indus¬
trial expansion instead of
an economic
decline.

years
well. With the romance of

"Prophets of Economic Doom"
upsurge

activity leads the business cycle

through the next two
as

The

year

L.
of

Hegeman & Co., 300 Main Street.

factory status is likened by a key official involved to other major
relief plans, in that "being
inadequate for the job's requirements"
is displeasing to its
friends, while remaining anathema to its
ideological enemies.

^Number 5618 ;.

185

Volume

-With " Merrill Lynch

Guerin, Director

Central States IBA

Dean P.

21 si Conference

one

CHICAG O, 111.—The Annual

the Central States

Conference of

(1117)

Commercial and Financial Chronicle
The

the

Guerin,

officer and

original incorporators

LEXINGTON, Ky.

Burkholder

Eppler, Guerin & Turner, Inc.,

III

has

become

Fenner &

director

Inc.,

school,
seating.

elected
Equipment,

Griggs

local

formerly

leading manufacturer of
church" and '■ auditorium

A. C.

Burkholder

Mr.

was

Co.

changed

investment

Co., Inc., passed

was

when

its status

America

will

-•

Cowen

Co.,

passed

Feb. 21.

partnership

general

ILLINOIS

1956

HIGHLIGHTS of

Securities Forum,
afternoon forum
and
formal dinner on Wednesday, the

Municipal

From the Annual

Report to Stockholders

luncheon,
latter

dent of

our

Gross

Association, Robert H.

Craft, The Chase Bank. On Thurs¬

fee will

William
blower

charged.
Jr.,

Earnings

6,235,067

Common Share

1.29

1.30

$274,924,687

Loans

$197,152^007

$168,597,159

409

359

Outstanding

Number of Offices

the Central States Group.

Ouling

Celebrates 25th Yr.
W.

$313,729,830

Weeks, is Chairman of

Man. Bond

38,308,281

6,341,337

per

$ 43,479,647

, >

Volume of Business

Horn-

Lawlor,

Earnings

Net Income

day there will be a luncheon, af¬
ternoon
forum, informal dinner
and entertainment.
No registra¬
tion

1988

1986

being in honor of the Presi¬

American

Investment

Company

subsidiaries

Neal

dent

Fulkerson, Jr., Presi¬
the Municipal Bond Club

York

New

the

Bankers

Trust

Company,

has announced that the Club

hold

Country

723 053

t20

ioo

t4o

year

Club, Rye, New York, on
1957.
The outing this
will commemorate the 25th
14,

Anniversary of the Club's found¬

1955

625.653

359

1954

586.119

Loeb

Fitterer, Jr., of Kuhn,

326

565.603

296

Outing,
and
Chester W. Viale, of L. F. Roth¬
Anniversary

schild

the

its

ever

before

offices opened

or ac¬

more money

than

history. Fifty

new

1953

hi
r
—I

•

1952

233

.541.237
1

are

expected to contribute

measurably to 1957 income. We believe that 1957
will

see

even

[

net

earnings for our stockholders

though the volume of business

crease

may not

substantially. The record amount of long-

term

annual

financing completed in 1956 places us in a

strong

position to obtain new business this year.

"The Bond Crier."
Municipal Bond Club of
New York is a group whose mem¬
bership is made up of the local
men who approve, underwrite and
distribute municipal securities. It
has
grown
from the initial 64

paper,

The

charter members to

charter members,

partners

present en¬

Of the total of 64

rollment of 414.

who

were

either

department heads of

their firms at the time, 36 are still
active in the
ness.

;

municipal bond busi¬

•

The Club was founded in 1932

with the avowed objectives of en¬

fellowship

arid

maintaining

high

good

couraging

promoting and
standards

and

principles

mu¬

nicipal finance.
social

both

cational

today

Club

the

Activities
combine

sional pursuits,

and

profes¬

including an edu¬
for young men

program

commencing their careers in mu¬
nicipal finance.
The
outing will

feature

golf,

tennis, horseshoes, bridge, softball,

swimming during the day,
followed by the award of prizes

and

ranging from

automobile to an

The
in

predecessor of American Investment Company began business in Springfield, Illinois
40th anniversary this year we are proud of our past and are

1917. In celebrating our

for

memento

Annual

The

1957-1958

Meeting,

officers, and

the evening.

election of

dinner in

Company

American Investment
OF

A copy

ILLINOIS
•

8251

Chicago Analysts Hear

Maryland Avenue

Becherer,
Belt

—

Robert

of the annual report to

stockholders may be

obtained

Missouri

President of the Link-

Company,

luncheon

111.

by writing to the Company.
St. Louis 24,

CHICAGO,

will address the
of the Invest¬

meeting

Analysts Society of Chicago
March 7 at the Adams Room

ment
on

confidence.

looking forward to our future with

appropriate
the Silver Anniversary, with

individual

of the Midland

in¬

named

Editor

Managing

been

has

Co.,

1,000,000 customers in

200

quired during 1956

the General Chairman of the Sil¬
ver

■

been appointed

Co., has

nearly

409

ing.
John

i? 0

Beach
June

dollars

in
ma

loans

1956, and earned

OFFICES

OUTSTANDING

«*•

in millions of

OF
,

will

and

Club

Loans outstanding

N'JMIER

LOANS

Field Day at the

Annual

its

Westchester

made

Vice-President

and

Hotel.

become

Harry G. Cowen

morning

Walston
an

Harry G. Cowen, limited partner

The program for the two-

meeting, includes

elected

incorporated member firm of the
New York Stock Exchange,

Englander joined Walston
in January, 1946, and was

admitted

held March 27 and 28 at the Drake

day

later

Robert H. Craft

Lawlor, Jr.

Hotel.

Mr.

representative for

the

Tuesday, Feb. 26, 1957, fol¬
lowing a heart attack.. He was
50 years old.

Allyn and Company, Incor¬

porated.

19527

Vice-President

Jr.,

away

Beane, La Fayette Hotel

Building.

Englander

firm of Walston &

asso¬

Stock Exchange, has been

Vice-President

James R.

—

ciated with Merrill Lynch, Pierce,

Wm. J.

Robert

Dallas, members of the New York

Group of the Investment Bankers

Association

(Special to The Financial Chronicle)

Principal Subsidiaries:
Public Finance Corp., Public Loan Corp., Domestic Finance Corp., General Public Loan

Corp.

•

away

The Commercial and Financial Chronicle

(1118)

Inadequacy oi World's
Monetary Gold Slocks

the

world's

the

Claiming monetary gold stocks should keep pace with rising

become

nounced,

and

favor

the

would

become

in
gold

other

price level rises, Dr. Einzig contends, for these and

reasons,

Despite

State

inflation

objections, believes mounting
gold revaluation.

The question
o? the inadequacy of the world's
monetary stocks of gold and of
Vie official American buying price
of gold, which
—

faded into the

backgrou n d
during the last
year or two,
has

come

the

fore

once

more.

received

licity

has

pub¬

con¬

nection

the

foreign
exchange reserves has increased
considerably since before the war.
trade balances can oe settled

But

aid

review
Samuel
Paul

Einzig

tagu

London

f;he

points

out

1956,

the

non

amounting

$980

million

$455

was

1 1-

dealers.

that

out

gold

output of
world,

Communist

Co.,

bullion

review

Mon¬

the

toown
That

the

situation

without

not

potential instability.
During the early '30s the exten¬
sive
operation cf the gold ex¬
change standard became a source

element

when

weakness

trust

of dis¬

wave

developed in one hard cur¬

another,,

after

rency

million,

some
absorbed
by

Jioarding and industrial require¬
ments, leaving only some $525

distinctly unsound de¬
'Yet So long as the
increase in the monetary stocks of
gold does not keep pace with the
a

velopment.

requirements

international

from

trade

arising
and

fi¬

the tendency cf increasing
proportion of foreign exchange re¬
serves is likely to continue.
Th.s,
and not the increasing volume of
nance,

million for the monetary reserves.
Even
allowing for the sale of currency and credit, is the main
»Soviet gold in London and other- argument in support of the case
markets, part of which found its for a higher dollar price of gold.

into

official gold holdings,
the increase of the world's mone¬

way

But

would

United

Claims Gold Value Declined

crease

and

pointed
the

out

cess

the

undue

cause

This

year.

problem

need

not

having

concern,

re¬

gard to the fact that most coun¬
tries have long abandoned
any
pretense of trying to maintain a
minimum ratio cf
gold to mone¬

circulation.

tary

"What

much

important is that during 1956
prices in most countries rose by

considerably
that

than

that

basis

ally declined.
Nor was 1956 an
exceptional year from this point
view

during the postwar pe¬
Although
the
nominal

riod.
amount
Leen

the

gold

serve

the

accumulation

the

inadequacy of the monetary
supplies of gold may become a

Another

likely
idea

in¬

roughly correspond¬
ing extent, they are apt to become
jjiadequate for meeting require¬
a

arising
and

from international

finance.

From

the

point of view of the domestic

fi¬

nancial structure of most
countries,
it may be of small importance if
the

gold

fraction
rency

IK)int

and
of

of trade

cline
ter

reserve

the

credit.

view

declines

volume

But
the

from

cur¬

tne

settlement

balances, the relative de¬
gold reserves is a mat¬

of considerable

importance.

Of
course,
gold reserves are
supplemented by foreign exchange
reserves.

Their proportion

the

side—many facets of
as
not having
direct bearing on the problem—

the

The

new

Church

Erwin

Street, will occupy a

plot of 54,000
S.

Wolfson, Chairman of

Construction

who

Co.,

erecting the structure in associa¬
tion

with

Harry
that

Lawrence

the

leased

six

floors

comprising 218,000
used

house

Headed

Parisi,

the

has

feet of
will be

executive

offices

the

Board.

by Commissioner Angela

the Board

in 'two

downtown

80 Centre Street and at 55 Frank¬

which

steel

Now

the

ac¬

total

company

forecast

can

forecast
let

factors,

that

First,

will

the

from

comes

(1)

manded

the

during the

Regional
deviate

Purchases, nego¬
the space for
the State.
The 10-year lease, in¬
volving an aggregate rental of
l^ase

$11,137,000 for the ten years, will
renres^nt

annual rental

average

$1,113,700.

The Federal

Home

Loan

Banks

March 5 offered

through Ever¬
Smith,
fiscal
agent
of
the
Banks, and a group of securities
dealers, $146,000,000 of 3.70% se¬
ett

ries

1-1957

also

pattern.

the

first

half

Then taper off in the

the
sec¬

half.

ond

(4) Electrical machinery pro¬
duction, especially heavier types
of equipment, will continue strong
for

of the year.

most

(5) Appliance demand is ex¬
pected to be down during 1957
from

the

level

1956

Certain items with

increases

measure

but

end

they will

The

generally.

strong growth
at

be the

decline

year-

excep¬

in house

con¬

year.

for

steel

appliances over the last few
indicates a weaker steel
demand from the appliance mar¬
years

ket.

(6) Railway equipment demand

produce

for steel will be higher.

economy

Shipbuilding
higher.

(7)
be

will

demand

(2)

Steel

to-maintain

inven¬

(8) Container demand
higher.

will

—

tories to keep production of these

goods

5% Higher Output in 1957

flowing.

Major Steel Consumers

Looking
steel

the

find

the

demand

for

following out¬

(1)

Automobile

production

expected, by the automobile in¬
dustry, to be 6.5 million cars this
compared

to 5.8 million

roughly

two

the

will

probably

shipments

demand

proximately 5%. If this

above

was

would

ap¬

equal

mean

total finished steel shipment level
of about 85-87 million tons for the
year.

■.

...

•.

However, on top of this demand

last

tons

total

the

steel

level

1956

balance,

finished

for

look for major steel consumers:

year.

Market

this

and:

year

FKLB Notes

come

year.

the

Also,
basis.

may

(3) Machinery production dur¬
ing 1957 will probably be slightly
ahead of 1956. However, the pat¬
tern of demand indicates the peak

Street.

tiated

from

accurate

come.

differences

con¬

national

the

need

year

may

analysis

yield

forecast

needs:

the

picture of the

volume of goods de¬

throughout

industry

detailed

struction

may

closer

you

struction and the heavy purchases

influence

basic

construction

tions.

some

necessary

the physical

this

construction

sufficient—it

some

will

made.

make

demand
two

Steel

total

himself.

check

being

has

demand for steel

Charles H. Kriger, Commissioner

made

shipments

internal

of Standards and

ship¬

and

once

shipments,

Each

located

now

structures,

demand

course,

forecast

thus,
its
shipments — and
its
profits.. That is the real purpose

and

Compensation

predict its share of the market—

building

square

the

administrative
Workmen's

York

This space

area.

announced

New

steel

examine

bear in mind that
our forecast is to

ments.

and

Wien

Helmsley,

State

rentable

predict

for

feet.

square

have

purpose

steel

district.

ques¬

economy

dismiss

can

section of the downtown

financial

this

answer

every

curate

Manhat¬

steel

look at the

we must

Church and
Barclay Streets, West Broadway
ancl Park Place in the City Hall

the demand to sustain in¬

will be

steel per car, the demand for steel
from the automobile

ventories at workable levels. This

about

industry will

roughly

million

another two million tons

the

truck

the

steel

mobile

business

demand

and

fcr

inventory gain is expected to be
the

find

from

truck

Add

tons.

the

auto¬

industry

1.5

million

year.

for

tons

It means,

therefore,

we can an¬

finished steel mill
shipments for 1957 of 87-88 million
tons. To ship this level of finished
ticipate

total

than

now

lesi

consider

ever

the

raising the official price
gold'is the! revival of sales of

The annual report of
Samuel Montagu & Co. estimates
the total sales from that
1956 at
est

4,300,000

amount

since

the

the larg¬
single year
higher dsliar

any

war.

price would

source

ounces,

that the Soviet

mean

would

receive

price in London and elsewhere
on

that

means

the

non-callable

consoli¬

roughly

dated

15,

produce

6.5

vember, the last month available,

lion tons of steel ingot production.

the

why the United

reason

exchange

trade

Sales

Gold

States Administration

tary" stocks

ments

the square

the

that

proposes

our

forecast

notes

Soviet

price,

can

synonymous.

Again,

bounded

1957

much steel will be
demanded and shipped? We must
look
at
both, for
demand and
shipments
are
not
necessarily

detail.

started March 5

block

year

How

dated

dollars for the gold unloaded out¬
side the Communist bloc.
Even if
all the gold does not find its
way
to the United States, the market

sattled

for

store

others

was

the

does

industry? Probably the most im¬
portant aspect of 1957 to us is:
(1)

over-all

1957
and maturing Sept. 16. 1957. The

of trouble.

source

gold, increases in sympathy with
the price level. Unless the mone¬
to

foreign offi¬
resulting from

Remember, for

for

short-

activity

what

high and containing nearly
square feet of space,

move.

Now,

from

air-con¬

million

cial dollar balances

based

creased

sufficient

term

limits

the

Economy's Future

outlook,

long-term

set

can

tion,

$28,000,000

one

re¬

requirements. But

the

ditioned office building, rising 20

the

Government

gold

than

meet American

has

tendency is important, be¬
money value of foreign
trade, and the amount of balances
to

rise

the

has

the

which may have

from

value

This

cause

resulting

price level. The American gold

stocks

rising, their real
declining.

Leen

di¬

2%,' so' of
be Soviet gold.

may

claimed that the commodity value
cf the tctal monetary stocxs actu¬

Executive

rise in international requirements

cf the world's monetary stocks to
the world's total volume of
money

actually declined last

affected

not

currency

volume of

during 1956 was, in
countries, distinctly in ex¬
of 2%, so that the
proportion

aspect

rectly by the failure of the world's
gold stock to keep pace with tne

the

credit

most

States

in¬

that

mind

stories

lin

unduly opti¬
mistic
to/expect that American
tary stocks of gold, the addition of opinion wouid allovv itself to be
the monetary reserves
during last convinced by a revived campaign
;year could not
have been more in favor of raising the official
than 2%.
<
gold price.
For one thing, tne

massive

100

though the repetition of
that particular piece
of history
seems
unlikely, a.further consid¬
erable increase in the proportion
of
foreign • exchange ► reserves

increase

feet for

square

and

building, which will be known

Even

would be

six
con¬

tion Board.

tan

The Main Argument,

leases

Offices of Workmen's Compensa¬

with

currencies.

hard

the

York

Administrative

In normal conditions international

with

annual

New

20-story structure,

taining 218,000

combined total of gold and

the

figures
published in

floors of

warrants

LONDON, Eng.

The Outlook for Steel

hold

District In Progress

the official dollar price for gold should be increased.

page

And the

In Lower N. Y. Financial

from

stronger in conse¬

proportion of non-gold foreign exchange
and that commodity value of monetary gold declines

Continued

argument

revaluation

$28 Million Office Bldg.

prevent increasing

Thursday, March 7, 1337

pro¬

requirements arising from international trade and finance, to
reserves,

monetary

would

stocks

quence.

PAUL EINZIG

inadequacy
goxl

further,

proceed
of

official

American

higher dollar price

increase

proceeds

the

foreign

these

notes

priced

are

Net

March

at 100%.

proceeds from the off°ring,

toother with current
will

cash

funds,

applied

the

redemption

two

maturing note issues totaling

S331.0C0.000.
a

the

which

net reduction

Banks

March

will

another

than

cars

likely to be used against

higher

dollar price of gold is that it would

produce

though

inflationary effects.
there

Al¬

longer any
rigid ratio between the volume of
gold

and that of

reserve

become

course

argument in favor of

strong

higher gold

price, if the deflation fears which
now

widely

entertained

the United States should material¬

ize.

they needed
and

trucks

Likewise

inflation

should

steel

tons

in¬

—

to produce

they turned

the
out.

lated.

Banks

of cash into the

The Banks

due

repay¬

by the Banks.

Feb. 15 aho retired,

without refundin
no^es

eonseouence

ment of loans made

356,000,000

that date.

financing

outstanding

have

notes

reduced to

from

took

viU

$724,000,000

$909,000,000.

year

contractors

direct

turned

worth

roughly

The

merly
will

investment

conducted
be

business

Paul

1956.

dollar-wise

but

due

continued

Gladstone under the firm
Gabriel

Inc.,

Gladstone

from

Avenue,

offices

New

Gabriel

by
&

Co'^nsw^.
470

York

name

which

Fourth

City.

water

—

total

lack

and

Me-

the

15-20%.

level.

Industrial

and

its

other
will

pattern
steel

ties, Inc.

the

of structurals and

light

materials

some

jobs

plates

inventories

will

keep de¬
type of steel from
industry

most of the year.

down

some

degree.

thousand to

Steel

reach

being

are

rate

million tons.
this

consumers

estimated

monthly

strong

Here again,
are

adequate

rate

inven¬

tory

quarter

dation—or at very

least, no more

inventory building during the Sec¬
ond

the year.

half of

Under

circumstances, the

these

lower levels
during the second
half of the year. This would mean
finished steel shipments of about
industry

can

expect

operations

million

6.5-7.0

7.5

tons

the

opposed

month

rates

present

million tons.

year

demand

However,

construction

built

govern¬

increase.

for

though, total inventories

Securi¬

own

highway,

for

Coastal

con¬

off

year

for this

in hous¬

the firm

come

Kenzie, 145 Ashburn, is continu¬
ing his investment business under
name

hold

relatively

these

mand

of 700

now

inventories

level in the first or second
of the year, based upon
their anticipated production rates.
This would mean inventory liqui¬

billion

higher

construction

slightly.

Now Coastal Sees.

steel

and

may

will

works

shifting

with

Right

that

mills

volume-wise

1956

the

during
ment

ing.

The main decline

may

construction

the

HOUSTON, Tex.

the

from

for¬

Rvbak

The key to this year will
of inventory build¬

be the pattern

should

344.5

less

year.

However, this is not the whole

last

construction.

new

somewhat

than

ing

tons

construction is expected

new

products)

steel

from

out

industry

million

struction cost!

Now Gabriel Gladstone

accumu¬

construction

about

were

accumulated

(2) The
(including

1957.

Upon completion of the current

cur¬

and credit, psychologically
higher dollar price of gold might
operate in favor of inflation. I his
rency

are

million

Again,' inventories

seasonal inflow

therefore, expect to operate
average of 88-90%
of .ca¬

can,

story.

roughly
industry

the

tons,

pacity for the

the Banks to retire this substantial

capacity

million

roughly

building

principal amount of notes without
refunding r^fl^cts, Mr. Smith said,

gold

that

argument

tons.

current

133.4

118-120 mil¬

would need

of $185,000,000
abilitv

million

16.5

Obviously,

The

steel

ventories is taking place. In 1956,
the
automobile
industry
took

result

outstanding notes.

rate

No¬

shipping

was

industry

in construction will

Yet

may

annual

auto

they

cars.

industry
the

tons—if

million

sales.

the

steel

million

being

Light and Heavy Plate Demand
Now

terms,
one

have
as

all

general

is generalizing.

Especially structural
The demand for these
tight, although some
has developed and will

plates.

types is still

easing

Certainly

steel products will follow

this pattern.
and

employed

I mentioned above,

of the pitfalls we must guard

against
not

but

Volume

185

continue

Number

develop.

with

even

the

5618

The Commercial and Financial Chronicle

However,

easing

other

Fifth, you have the recognition

tries

and

one

other

rolling facilities

capa¬

ble of turning out plate in

lighter

plate demand, will stay
strong throughout
most
of
the
year. - Any easing will come late
gauges,

in the. third

quarter

the fourth

then

1957 —and

marily in lighter gauges.
According to studies on

pri¬

expected

the next

two

five

sequently,
the

this

have

the

weakening

any

justment.

that

been

forecast

at
at

ad¬

planned

of today

expansion

are

conditions

temporary

tors

negate
are

because

are

but

some

that

today
a

Hayden, Stone Branch

the

SYRACUSE,

—

cialist

Hayden,

with this

one

the fac¬

office in the State Tower

missing

were

And I leave

under

the

direction

Building

Samuel

Joor, Jr.

growth

American economy

column,
"The
Investor's
Forum," will give six lectures on
"Investment

Finance"

at the Town Hall.

has

The

F. L. Salomon Admits

been

first

Dollar,"

this

The

made

spring

lecture,

March

are

April

15,

April

25,

and

April

DENVER, Colo.

—

the

—

in the last ten

pat¬

other factors.

many

let

.And

add just

one

Highlights of the

comment.

Depression

Refutes

1956

Fears

significant
economic problem today is whaf
happens after 1957. Current talk
by people in high places mentions
the possibility of a depression—
Probably

the

most

conditions

that

are

ripe

now

Annual

Report

for

one.

cannot

There

which prevail

thinking.
conditions

that

buy
too

are

many

today that are en¬

tirely different from past experi¬
ence.
Each business cycle is dif¬
from

ferent

which

any

experienced before, and no two
are completely alike.
If we com¬
pare
I'm

conditions of
late 1920's
wilJLynderstand

that you

sure

what I

mean.

let

First,

■

look

market.

the

have

market

The company
to

be the

its

cash market.
I doubt if
drop in the market will cause

consumers.

take

dive out

swan

is the oldest, and continues

largest, organization engaged

Another year

of growth shows

that Household's prompt

nantly

anyone

occasionally borrow cash.

exclusively in making instalment cash loans to

speculators, it is now a predomi¬
any

helping responsible people

10%

have

may

earnings for stockholders. This

business of
who must

stock

the

did then and

not

margin today
while

in loans made to customers and
in net

those of the

today to

the best in the

history of Household Finance Corporation

the

some

The past year was

have

and courteous

lending service finds favor with customers.

the nearest window. Also, and per¬

haps more important, is the high

education of today's
business and
otherwise, to other barometers of
of

degree

populace,

both

health

the

economy.

people

of the

looked

business

the

majority

the

1929,

the

stock

HOUSEHOLD

of business.
Today we realize that it is only
one
of many.
It therefore loses

market

much

gauge

effect

its

l stab1ismeo

ing of businessmen.
Second,

mum

bilizers

the

how have such sta¬
economy as mini¬

THE

YEAR

1955

1956

$539,987,008

$451,922,903

1,625,237

1,494,799

Average unpaid balance..

$332

$302

Number of branches..

832

738

$21,445,518

$16,877,670

unemployment insurance, pension
funds
for
workers,
all
putting

Customer notes

and purchasing power into
of the
people, who,
when laid-off in the '30s had no

Number of

money

receivable..

customers....

hands

the

income at all.

Third,

remain

consumer

there

the

are

occur.
who argue

those

1930's there

who wanted

long

goods from
un-sated, a

cannot

depression

the

have every¬

And

demands] for

the

consumers

desire.

they

thing
the

the

States do not

United

18?#

END

social security,

laws,

wage

FINANCE

Y/)CJ Ya/i&ti
/

think¬

the

goods—but were un¬

But remember,
once they were unemployed they
had no income. Today they would
able to buy

YEAR

Sure,

that
millions

were

THE

FOR

Net

income...

Net income

per common

them.

Cash dividend

per common

........

share.

$2.70

7,525,595 shares

$1.20

$2.19
on

7,169,517 shares

$1.20

have.

Fourth, you have a

recognized
which

government

World

War

its
II

withdraw

not

per common

po¬

isolation¬
ism
as
we
did previously.
We
have
endeavored
to help
other
did

Stock dividend

world leader and
recognizes

turn

After

sition.

into

In recent years

Household has retained approximately 50% of net earnings, making possible the payment offour stock
10% in 1954; 5% in 1956. It is the present intention, subject to changed cir-

dividends: 10% in 1949; 10% in 1953;
-

cumstances, to pay

annually

stock dividend tchicli capitalizes a substantial portion of the

year's retained earnings.

their economic
strength and to develop economi¬
cally backward countries.
These
countries

countries
and
omy
our

with

regain

are
a

becoming

stronger

cannot

own.

but

stronger

world

help
'

econ¬

bolster
For copy

April

Each

L. V. Dolsby

Martin H. Schecter Monday, March 18, is free and has become affiliated with Walter
will become a limited partner in
open to the public.
There will be R. Plankinton, 1637 South Broad¬
F. L. Salomon & Co., 29 Broad¬
an admission charge for the other
way.
He
was " previously
with
way, New York City, members of
talks
on
investment decisions, Carroll & Co.
the New York Stock Exchange.

terns, capital goods demand, profit

icy, and

4,
22.

(Special to The Financial Chronic: e)

Groggy

at 5:30 p.m.,

as:

consumption

six

Walter Plankinton Adds

factors

rates, the relation between ca¬
pacity and productions by major
industries, government fiscal pol¬

all

scheduled for 5:30 p.m,

such

question-and-

will follow

announce¬

by Ormond

"The

to be given

session

discussions by Mr. France.
The dates of the other lectures

On March 14,

under¬

constantly

the

syndi¬

cated

ment

thought, that almost

amateur—has

the

security.

answer

Drake, director of Town Hall.

you

forecaster—professional,

estimated

social

finance
author

and

building of financial founda¬
inflation, speculation, and

tions,

Harry C. France, financial spe¬

major depression. There
more.

the

Town Hall Lectures
On Inv.

Stone & Co. have opened a branch

many

every

short

pro¬

moment.
These

sell

market

dip.

geared to this

long-term outlook rather than to
the

don't

bull

temporary

rates, prices,

wage

rates,

basically

bright

steel

other

many

indus¬

all realize

considered,

income levels,
interest

remarks

am sure you

great

seen

inventory

•

short-term

have

Con¬

will

year

limited

although I

least.

temporary

demand,

over

years

end

best

strong

and

future

in the 1920's and 1930's that would
capac¬

ity,
production,
and
heavy plate demand is
continue

that

grams

years.

companies
the

many

products, making available ingots

(1119)

of Annual Report, write Household

Finance Corporation, Room 3200, Prudential Plaza, Chicago 1, Illinois

The Commercial and Financial Chronicle

(1120)

G. H. La Piere With

Bank and Insurance Sttichs

W.E. Mutton & Co.
W.'E.

By ARTHUR B. WALLACE =

Week

Bank Stocks

—

has

column

City banks as a group, and
outside
New
York.
One

York
those

which

dissimilarity,

noteworthy

present

mentioned only in pass¬

of yields. Presently,
yield of the New York
City banks runs well above 4%,
with a highly conservative pay¬
out ratio of about 62% of operat¬
ing, is

that

the average

outside

banks

yield

4%,

under

there

and

which

cases

numerous

yield is accompanied by
tively high pay-out ratio.
In

show

York

New

are

low

rela¬

this is ex¬
the banks
as being, in
"growth" territory; but it must be
quarters

many

times of

that in

remembered

nomic

eco¬

so-called

the

distress

territories
often
fall
precipitously than the staid,

"growth"
more

shall

effete, areas.

say

But to

get back. Tabulations are

presented showing, on the part of
New

York

and of
banks away from New York, the
ratio of time to total deposits as
of Dec.
tion

the

form

service
stress
of

banks

City

31, 1956; and the propor¬
gross income required in

interest

time

the
the

bank to

National

Chemical

Guaranty

Trust

the

deposits"

Bank

8.9

10.8

10.5

0.4

7.5

in the main
around the country time deposits

The

York,

interest-bear¬

largely

Also to be pointed
that in general the
banks in the interior derive higher
income.

gross

is the fact

out

deposits

savings

rates

been

the

interest

past few m'onths has

costly for

applies to

This

banks.

some

large

proportion

their

part

sulted
from

higher
in

large

and

rates,

shift

are

the

banks

those that make avail¬

information,

the

and

Transmission

Proceeds

pany

plates

ical

But

the

banks

used

are

their geograph¬

funds

have

been

partnership in Scudder, Stevens
Clark, leading investment coun¬
sel firm, it has been announced.

Leading Bank

They will both be located
New

Stocks Outside N. Y.

York

vens

years

Members New York Stock Exchange
Members American Stock Exchange
NEW YORK

the

Yale

5, N. Y.

district

Yale

Specialists in Bank Stocks

after

martager

the

and

graduate of

since

his

graduation

University in 1948.
years

For the

he has been

rector of Scudder Fund of

NATIONAL
of

the

Office:

Government

West

End

London,

di¬

Canadian investment

com¬

con-

Samuel Hochman
Samuel Hochman is

Branch:

13, St. James's Square, S. W. 1.
in India. Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Spmali-

securities
1258

New

business

Opens

engaging in
from

Boynton Avenue,

offices

Bronx,

£2,851,562

and

Trusteeships
also

exchange

business.

and Executorships
undertaken

contem¬

million

250

day

per

"Little

major

Inch"

Big

the

addition

will

bank loan

additional

extent

pe¬

financing

approximately

be. necessary

Approxi¬
for the new

is to be purchased
Mexicanos,

Mexican

connection
The
from
area

Government,
Rio

the

balance

from

agency

Grande.

purchased

conversion

Big

will

Inch"

the

part

The

L.
J.

MINNEAPOLIS,- Minn.-^Warde
Brown
M.

rated,

Dain

now

connected

with

Company, Incorpo¬

110 South. Sixth Street.

re¬

into

the

management

restraint

and
negotiating

wage contracts.

reaction

enable

have

often

productivity.

evidence

state¬

exceeded

com¬

furnish a petroleum prod¬
transportation
service j ex¬

pany To"

ucts

tending from. Beaumont, Texas, to
Moundsville,
eral to
A

tire

with

Va.,

lat¬

Chicago, 111.

nar¬

fund,

sinking

1959, will re¬

96.3%

approximately

"Labor
creases

not

deemable

but

company

are

the

For

the

'unwarranted'

dustry

and

ended

revenues

consolidated

vester

Keenan &

month,

demanded

investigation

net

testifying at

Economic

far

31,

income

now

Committee,

to propose a

statute

requiring such corporations to re¬
port and justify planned price in¬
to the government before
putting them into effect. -*

creases

Look

"All this is

the

Record

old story.*

"One of the difficulties in

paring
is

selecting

showm,

dollar levels, meaning a
smaller share of the manufactur-

com¬

ing industry turnover.
"The totals of employe compen¬
an increased number>

sation reflect
of workers

well

higher wage,
Average
annual earnings per full-time em¬
ploye rose from $2,800 in 1947 to
$4,600 in 1956 or by 63%.
The
profit figures, on the other hand,j
as

salary, and benefit rates.

show

little

lions

reflection

dollars

the period.

capital*

chosen.

addi-'

investment, the rate of

companies

in
or

deter¬
groups

of finding patterns that

be regarded as typical.
"A
simple over-all picture

the trend in the period

compensation

"From

Battle

the

foregoing it is evi-.
industry, instead of 'fat¬

dent that

tening its profit margins' has been

fighting a constant battle against
rising costs. Nevertheless, indus¬
trial pricing policies continue to
be the target

trial

of criticism.

leaders

Indus¬

being haled be¬

are

fore Congressional committees and
other tribunals to

answer charges
'gouging the public,' ^conspiring
fix and raise prices,' and the

of
to

like.

have not yet

Union leaders

been called

to similar account for

the wage inflation that has been a

major factor in rising costs.
"The President's
flect

statements

understandable

ity in dealing with
versial

high

his

Economic

costs

outrun

last

pointed
that

Report

materials

raw

increases

wage

these contro¬

But

matters.

out

that

1947-56 of

employes

(in¬

the

Clarey, Inc., McKnight

small gain in
productivity' were 'pervasive fac¬
tors'
making for higher prices.
Secretary of Agriculture Benson,
in a speech at Spokane, Washing¬
ton, denounced with characteris-.
tic candor 'soft wage settlements'
as
responsible for higher prices
and for most of the drop in farm
income.
Suasion

Moral
"The

Not

Enough

President's

restraint

plea for selfthe part of manage¬

timely.
pointed

The

out

the

appropriate and

trouble

Joint

the

that,

recent

Congressional

Committee,
with

the

notice that
to

report
Eco¬

this plea

financial

con¬

incen¬

coun¬

served

unions intended

labor

keep asking for wage increases

based

the

profitability'

'productivity

and
industry—apply¬

ing,

its national income series.-.

tiated this year in

ures

are

given

for

industries

the

rather

Fig¬

manufac¬
than

for

all

with

and

'tended

year's

manufacturing
industries, as computed by the
U. S. Department of Commerce in

turing

Sil¬

re¬

neutral¬

cil, at its Miami meeting,

benefits),.'profits,

fringe

taxes

re-'
;

A Constant

ment and labor is

comparison.
Because of the
of profit and wage pat¬
among the
differeht com¬
panies and industries, there is the

and

over'

In fact, when allow¬

turn declined.

profit increases
the base .* period.

relationship can be
depending upon the base

cluding

bil-:

the

new

is made for this huge

ance

tional

any

mining the

:
-

and

wage

Almost

have fluctuated around

—

same

can

income

—

wage

panel session of the Joint Con¬

went

of their;

problem

$175,183,-

Minn.

corporations.

major

One labor economist

gressional

the

Miami

investment

money

risk

and

sharehold¬

the

use

re¬

Dec.

net

Augustin is

Building.--

meeting

profit

policies

the

tives of both parties.
"The AFL-CIO executive

$16,793,525 for the year 1955.

MINNEAPOLIS,

last

remained

for

$17,358,655 compared with total
consolidated

profitswithout rais¬

The AFL-CIO execu¬

council,

"By contrast, profits after tax—

ers

flicts

operating revenues of $163,264,701
and

Congr essional

pre¬

making possible wage in¬

Beach

price

mar¬

labor

purporting to show that
risen
faster
than

prices.

tive

profit
for

have

creases out

ing

in¬
but

attempts by in¬

Spokesmen

sent data

price

to;

likewise?

nomic

cost-

wages,

fatten

'to

gins.'

'47

terns

prices
100%.

time

106.5%

year

due

These?

—

the

otherwise

option

any

not

'56

variety

maturity. The bonds
refundable, for a period

of 10 years,

that

retorts

are

taxes.

billion

for

the

issue prior to
are.

increasing

"Another difficulty

semi-annual

Sept.

$64

nearly double.

gains

It points to

price squeeze.

"Little

the

nearly

—

poured into these industries
these

"Management blames rising
prices upon rising costs, particu¬
larly wage increases which it con¬

re¬

(Special to The Financial Chronicle)

Joins J. M. Dain
•

flared

both

to
for

producers in the Gulf Coast
of .the United States.

With Keen an & Clarey

£4,562,500

banking

the

York.

Protectorate.1

Capital

gas

the

agreement,

945

Paid-Up

sale

which

products.

operating

Reserve Fund
£3,104,687
The Bank-conducts
every description of

the

funds available under

both

Uganda

Authorized Capital

ac¬

1956, the company reported total

Army

diet.

Branches

land

and

scaling from

Bishopsgate,

(London)

994%

World War II and the Korean

BANK

Kenya Colony and
Head

Canada,

appeal

pany. He served as a 1st Lieuten¬
ant in
the U. S.

INDIA, LIMITED
Bankers

from

with President Eisenhower's

tends

reconversion

beginning

has been with the

time.

some

open

(March

pipe line to transporation of

University, class of 1945.

past two

Ltd.,

six

assistant

was

sales

Mr. Johnston

(L. A. Glbbs, Manager Trading Dcpt.j

1950

time he

York.

firm

1-1248-49

Ave.

with American Airlines, dur¬

New

BArclay 7-3500

Teletype—NY

the

Park

joined Scudder, Ste¬

Clark

which

ing

Laird, Bissell & Meeds

Telephone:

Coxe

Mr.

Request

office, 300

crops up

wages,

the

for

Eastern

Petroleos

admitted

which

controversy have been in evidence

capacity of the company's system

feet

program

Johnston

have been in¬
their periodic

during periods of
upward
price
pressures,
and
rumblings of a renewal of this old

Texas

mately half of the gas

Names Two Partners

always

yesterday

complete this program.

Scudder, Stevens

one

by the President has been
spirited and partisan.

group

from

$58,000,000

re¬

that

sponsible for rising prices—man¬
agement or labor. This argument

profits

areas.

over

the

troleum

used.

debates

''The

banking

increase oi

both, and they could not

but

out

profits

excess

what

ments

headed

points

people

newr

Inc.

program

not

de¬

"Letter"

labor

will be used by the com¬
in connection with a $238,-

000,000

Bell

Metal¬

interest, to yield approxi¬
mately 4.915% to maturity.

Comparison

120 BROADWAY,

the Ameri¬

Co.

against rising costs."

Corp. first mortgage rower profit margins as refuting
series due; the charge of profiteering and as

priced

1977,

portion

Eckley B: Coxe, IV and George

and

Mines

price issue

"during the past few months the

crued

the other, in¬
balance sheet, information

Bulletin

profit

pipe line bonds, 4Ts%

banks

one

$12 billion in

dulging

University

Mining,

offered

cubic

gave

Read

$40,000,000

they selected to prove
the point; and only large banks
were
taken.
A number of large
were

sense

checking to savings accounts.

investment

6).

over

American

Transmission Bonds
which

from

"that

observes

The

Dillon, Read Group
Offers Texas, Eastern
Dillon.

rose

Cities

•

member

Institute

can

re¬

those

with

bonds

tabulations

both

chosen

pro¬
oper¬

interest

ating earnings that
quirements take.

representative of

paying

their

deposit liability; that is, the

compete

respect

portionately smaller slice of

One large New York bank

the New

with

the cost

will

rates

that

occupy

gories.

savings

loans

however,

loan

position

banks

this

doubted,

posits in the savings deposits cate¬

recently raised its interest rate

School

Missouri

higher

the

offset
York

that have carried

many

their

returns.

these

come
a

interest

rates

able
most

the

'56

gest

Nevertheless, lurgical and Petroleum Engineers;
Gas
Association,
and
in many of these cases time de¬ American
the Independent Natural Gas As¬
posits bulk large in proportion to
total deposits, and interest pay¬ sociation of America.
ments take a large bite
out of

levels

Piere

the

with

from

Metallurgy.

accounts

gravitate to the commercial banks

so.

higher

savings

that

known in New

are

and trust companies.

But

move

they

-"Government took the next big¬
bite in the form of income1

battle

associated

Engineering

Some States do not have savings
banks

Gilbert

1954.

thereto

was

billion in

and

industry, in¬
stead of 'fattening its profits mar¬
gins' has been fighting a constant

Service Oil Company. Mr. La Piere
holds a B. S. Degree in Petroleum

10.61%

24.9%

Averages

interest-bearing de¬
that are left with
the bank for stated
periods but
draw no interest. Foreign deposits

entirely

2.9

Penn

bank

$83

and

double.

Bank, aware of new
coming up this
in oil, rubber, chemical, tex¬

agement wage

the

Prior

some

either

officer

Co—.......

First

both

ing deposits

appointed

Second-State, Boston....
Peoples First, Pittsburgh

banks, for example, time deposits

are

10.0

17.7

of Cleveland

City

and paper industries, among
others, delves into the labor-man¬

was

7.7

from $444 billion in 1947 to

contracts

tile

Manhattan

Bank, and

14.4%

to employes in the form of
higher compensation. This soared
gone

than

year

Chase

examples.

York

than do the large Central Reserve

from

New

Alarch issue of the nation¬

wage

engineer with

Detroit

Bank

The

petroleum

8.2

the

and prescribes government's role
containing inflation.

ally known "Monthly Bank Letter," published by The First Na4

- •

6.85%

America

wage-powers,

previous¬

National Bank....

National

Valley

Security First, L. A
California Bank, L. A...
Crocker Anglo. —......

labor union

tional

was

and

33%

States that if "allowance is made for

huge additional investment, the rate of Teturn declined." Main¬
tains management is subjected to numerous
pressures/flays

7.3%

...........

that

are

4.3

& Co..—

Morgan

Averages..

average

major

the

posits and

dollar levels.

same

Mr. La Piere

3.2

Depart¬

ment.

city banks although the 1956 re¬
ports
of the New York
banks
showed
some
surprisingly
high

meaning

varies

4.5

110

Irving Trust
J.

Gas

Trust.....

Gilbert

Wage-Profit-Price Controversy

Oil

their

4.0

......v....

Bank

them

.8.3

Manufacturers
Hanover

9.4%

7°

Exchange

Corn

Wall

now

Manager

Manhattan...

Ctiase

with

10%

City......

Bankers- Trust....,.,....

York

include

in Interest

bank.

Among

Interns Paid

payment

deposits.

that

fact

"time

Tims to

First

Co.,

associa ted,

VcfG'Oss

Total Deposits

National City

plained by classifying
away from New York

Banks

Ratio of

Many of the leading

ing earnings.

City

York

New

that

announced

differ¬

leading

the

between

ences

New

Nine

occasions

out some marked

New- York -City, members
the New York Stock Exchange,

Piere
This

pointed

Hutton

Thursday, March 7, 1957

Using Department of CommerceV national income series data,
First National City Bank sbows wages and taxes since 1947
nearly doubled, and profits after taxes fluctuated around the

Street,
of

This

no doubt, their own yardstick
those two crucial points. With

new

be nego¬
the petroleum,

contracts to

wage

chemical,
textile,
and
industries, — to mention a

rubber,
paper

corporations because, by and
large, it is in this area that the

few—it is hard to believe that the

most

with

dynamic changes have been

occurring.
"It* 4s/clear

where; as be¬
employes,- the U. S.
Treasurv, and the shareholders—
the major gains have gone.
"By far the largest share has

tween

•

the

•

unions

involved

will

satisfied

anything less than the auto¬
matic
pay
boosts scheduled for
some

million

five

under

long

other

term

workers

agreements

signed in the past two years.
*

"Labor

job

leaders

try

feel it

increase

their

workers'

-Volume

185,' Number 5618

wages,and other benefits

much

within
and

their

UtJlUfllUUS

their effectiveness

OUUinern

Ohio Electric Co.

leaders

fl(

4%%

judged by how much they can
get
for their
'constituents,' not
only in relation to past gains but
also in matching the achievements
of other unions.

"Industrialists

;
#

tive
to

the need for

compensate

Suggestions
.'hold- the

sorbing
the

pricesihy

costs

wage

their/.services.

offered

after March

000

ab¬

over¬

employ
long could

Read

for

1,1.986.; They

under

an •

ioo%

also

This

public sale yesterday

panyY general

new

around

Electri? Co. first mortgage
bonds, 4y2% series, due 198T. The
bonds are .priced at 101.489 and
accrued interest, to yield approximately 4.41% to maturity.
The
was

sale

used

carry

construction* program,
the payment in large
bank.floans which were

part

incurred", for-additions ^and

^]es

The

program *

Wille

from

business

growth

counted

and

jobs

development

create

and

City.

Byrd.

Both

Mr.

Murray

Forms

"Criticism

being

that

agreements
the

nores

the

are

raise

realities.
almost

damaging
panies

certain

only

not

conse¬

directly

the

com¬

but

concerned

where

major industries are
to the community and

•involved,

the

even

nation.

Where

agement has tried to make
it

ig¬

prices

Disregarded

of long and costly strikes,

quences

also,

for

management

resistant to wage

formerly

was

(Specai

■

engaging
from

ness

Street,

to The Financial Chronicie)

Frank

; man

Bibik

the

has

often

for

stand
under

the public and gov¬

pressure from

ernment

itself

found

man¬

settlement.'

'quick

companies

with

Brokerage Co.

Power"

period the Company paid cash dividends of $61,758,361 on its
shares, and retained $58,796,311 in the business. Capital funds

of the

Company

with $80,000,000

with

base of credit for borrowing purposes

were

larger than for

any

expenses,

previous comparable date.

Gross written

were

1956

year.

Net sales of the manufacturing companies

during 1956

compared with $117,992,005 during 1955.
Net income per common

standing and

was

with $5.22

per

compares

The book value of the

common

the number of shares out¬

any

$118,976,584,

$5.26

larger than for

were

in the Company's

year

are

credit losses and earnings.

grateful for the continued

use

our

wholesalers, retailers and customers, and the continued support

with $47,056,317 for the

$33,106,362, compared

of $305,000,000. The Company

available for credit to future operations,

facilities by manufacturers,
of our
stockholders, institutions and others who have provided our operating
funds. We appreciate the intelligent cooperation and enthusiasm of the
officers and employes in the handling of the Company's operations,
which made 1956 the largest earnings year in the history of the Company.
The outlook for 1957 for the Company and its subsidiaries appears
We

premiums of the insurance companies, prior to reinsurance,

during

of $126,874,798

reserves

outstanding receivables of the finance companies of $1,296,831,241

December31,1956

December 31, 1956 exceeded $200,000,000 which,

of subordinated unsecured notes (including $25,000,000

9/1/57) and $25,000,000 Junior subordinated notes, provided a

due

satisfactory.
E. C. Wareheim, Chairman

share during 1955.

A. E. Duncan,

shares has increased $12.78 during the

leaders
take

business

actions

labor

and

past five years, and on December 31,

there

this

is
is

term

question where
most applicable to¬
no

President

Condensed consolidated balance sheet as

LIABILITIES

ASSETS

NOTES PAYABLE,

MARKETABLE
S

190

532

645

169

816

989

677 835

225

590

720

703

150

551

166

SHORT TERM

402

693

881

SECURITIES..

180

1955

1956

1955

1956

CASH AND

of December 31 ,1956 and 1955

698 810 917

790 319 000

Despite the talk of 'giant in¬

day.

dustrial

monopolies,' the fact is
that the ability of industry to ex¬
ert

1956 was $40.28. During this five

'significantly affect¬

ing' the nation as a whole. How¬
ever
it may have been in times
past,

of the Board

Founder Chairman

E. L. Grimes,

•

"The President, in his Economic
Report, referred to 'concentrations
of power' making it possible for

RECEIVABLES:

the
implied falls far short of that
concerted

any

kind

wielded

now

power

the

great

ACCOUNTS PAYABLE AND

Motor and other retail

Motor and other wholesale

...

Direct loan receivables

955

U.S.
628

455

combinations.
;

receivables

047 254

709

240

176

175 468

122 671

INCOME TAXES.,...

132

156 450

18,9

298

316

901

248 659

745

319

000 000

171

875 000

000 000

105

000 000

'76

015

891

LONG-TERM NOTES

The Role of Government

468

SUBORDINATED LONG-

this

all

48 939

CANADIAN

RESERVES..............
181

...........

"What

AND

labor
Commercial and other

ACCRUALS

points

is the

898

538

302

488

659 794

NOTES

385 073

TERM

major role that government must

play if inflation is to be contained.
Government is responsible, not to
any one group, but to all the peo¬
ple—the shareholder, the worker,
the consumer, the retired person
living on a fixed income or sav¬
ings.
hold

"To

for losses

NET WORTH:

205

118

805

168 785

Common stock

497

OTHER CURRENT ASSETS..

123

27 791

915 205

449

917 441

995

768 502

155 161

271

515 984

844

$1 451

451

898

923

336

421

ASSETS

Capital surplus

Total receivables, net..

FIXED AND OTHER

901

Total net worth
$1

$1 413 555 330

calculated

unnecessary

to pay

discourage

borrowing and to en¬

people to

courage

save

and

•Includes $25,000,000

lar, for

A few facts as of December 31,

are

seldom popu¬

people are bound to
squeezed or de¬

some

gains.
Also,
they involve risk of the brakes
being applied too hard. Yet they
are unavoidable if greater danger
of expected

averted,

found to the

and

answer

problem of maintain¬

ing stable prices during lull em¬
ployment.
of

344

190

015 937

451

768 502

792

$1 413 55.") 330

How the people meas¬
this test will be proof

1956 and 1955
1955

1956

1955

1956

Net income before U.S. and
Gross finance receivables
Written insurance

acquired

premiums,

$3 387 087 994

$3 677 241 749

536

103

197

240

057

432

012

310

16 569

774

15 ,628 251

777

288

877

131

609

679 343

$26 478 671

Canadian taxes.

$26

Less U.S. and Canadian taxes

'
33

prior to reinsurance

056

317

117 992

005

106 362

on income

Net income of
118

Net sales manufacturing companies

Gross income—finance
Earned insurance

companies

premiums, etc.

976 584

103

400

554

36 943 437

124 910

Finance

38 663

845

■

companies

Insurance companies.

....

-Manufacturing companies

i.
..

earned surplus
Gross

profit—manufacturing
17 958 054

companies

878

758

sundry income..

345

640

488

899

568

389

145

235

5 033 645

period

Common stock per

and

reserves,

$5.26

898

339

116

446

Dividends

133 917

922

052

5.58

income

insurance losses

$5.22

4.98

U.S. and Canadian tax

etc.

5 015 516

Net income

Total expenses,

930

738

161

Gross income.

184

Common shares outstanding,
end of

Investment and

336

Total credited to

themselves

prived

ure

111

955

Unsecured Subordinated Notes due September 1, 1957.

their debts.

"Such actions

230

761

✓

527

government must

restraint

find

123

202

Earned surplus

DEFERRED CHARGES

inflationary forces in

be pre¬
pared, as emphasized earlier, to
adopt
appropriate
budget
and
credit policies. This means hold¬
ing back on its own spending to
avoid competing in the markets
for scarce goods and services, set¬
ting an example of frugality.
It
means initiating policies of credit

check,

reserve

Book value

2.80

2.65

40.28

37.88

2.38

3.17

Interest and discount

charges...

Interest and discount

thgir maturity and capacity for
management of their

charges-

times earned

intelligent
affairs."

Offering services through subsidiaries in more than 400

C. G. Argodale Opens
.

HOT

SPRINGS

PARK, Ark.

—

offices in the United States and the Dominion of Canada.

NATIONAL

Constantine G.

Commercial Credit Company

Baltimore 2, Maryland

Argodale is engaging in a securi¬
ties

business

from

offices

925
.

Greenwood Avenue.

■

Opens

business from offices here.

common

held
The

name

ojf
'

LETCHER, S. Dak.—Wilbur (£.
Parker is conducting a securities

formerly

was

Bear, Stearns & Co.

year

$3,677,241,749 during 1955.

history, and

"Concentrations

$3,387,087,994, compared

aggregated

1956

Willard

firm

W. G. Parker

Associates, Inc., 134 South

Salle Street.

The volume of receivables acquired by the finance

during

connected with Henry

now

Montor

securities busi¬

offices

under

CHICAGO, 111.—LeRoy G. Gold-

of taxes, exceeded $26,400,000, the largest in Commercial

Credit's history.

form¬

GARFIELD, N. J.—Frank Bibik

/■' '•
' ■ '
Henry Montor Adds

CONSOLIDATED not income of the finance companies,operations,
insurance
companies and manufacturing companies from current
after payment

were

Brokerage Co.

standards generally?

not

td
business.

James E. Guthrie and

are

Credit reports

living

Lynwood,

securities

Broadway, New York

expendi-

Commercial

and

better

Tex.—Guthri^,

East

115

erly with Rauscher, Pierce & Co.

of¬

trial

Partners

J with Cornells de Vroedt Co.

un¬

management, neglecting this ob¬
ligation, remain in office? Can or¬ bidding on March 5 at an interest tures for additions and improveganized labor rightfully claim the cost to the company of approx- ments to its electric properties of
lion's
share,
and
more,
of in-; imately 4.464%.
;*
-- ' about $30,000,000 during 1957 and
creased
productivity- at the ex¬
The
bonds are redeemable
at $25,000,000 during 1958.
pense of the entrepreneur and the
general public? What will such a
policy do to the pace of indus¬

offices

fices

company's construction
contemplates

SAN ANTONIO,

Byrd & Co. has been formed with

Columbus, Ohio.

securities

;provements to its electric proper-

awarded at competitive

■

and

Quintin A. Murray is engaging

will
the

jncjuc|ing

area

Quintin Murray Opens

the

com.

which

funds

part

the

engage

company's

Ohio

issue

the

includes

-2*

Guthrie, Byrd Company
Opens in San Antonio

in Ohio with

areas

population estimated at 970,000.

improve•

from

utility

service in two

100%

are

is an operating
providing electric

company

public

from

1986

Proceeds

bonds will be .added

issue of $16,000,Columbus and
Southern

(March 6)

who

How

scaled

in the first year to

.redeemable

■-

& Co. Inc. and
The
Ohio
Company headed an
investment banking group which
Dillon,

obligation of management

shareholders

|■

prices

Bonds Offered Publicly ".Ittent :and sinking, fund' at. prices
*
scaled from
101.36% in 1962 to

higher prices
higher costs.
the
companies

that

line*

for

higher

look the
to

equally posi¬

are

demption
106.49%

organizations,

own

The

fiAlumkllC ; £ QAIlfhArit >lhe °Ptionof the* company at re-

possible. They face competition

(1121)

The Commercial and Financial Chronicle

Copies of our 45th Annual Report available upon request.

(1122)

The Commercial and Financial Chronicle

every

Retailers Should Wake

position

Retailers
have two

why?

nowadays
questions

look

stores where customers
in

and

the

are

going

and out

day,

all

the customers
down

the

highways and
f.

fnS
to

oiw

^ns. ?nd

cities,

they

would

know

"where " Then

that

is anything at all
people
to
mention

causes

place

your

favorably,

such

nationally

ehandise, but
and

put

such

catch the

advertised

mer-

too often ignored
corner.
Actually,

is
a

signs,

would

placed

advantage,

inside.

eye

and bring customers
•

own

business

may

their

...

not

line

resent

WAKE

new

many

the

business

man

who

establishment,

your

using

find
to

clever

an-

from

In these days of
advertising together with

Selecting
Often

the

cheapest

Location

highest

rent.

The

reach

rent

the

tising.

Is your store neat and at¬

tractive?

Can

merchandise

your

be easily seen or is it

that

even

jumbled

you

know

not

where

a
specified item is?
How
well did you screen your
employ¬
before you hired them?
Are

ees

getting the most out of your
advertising?
Retailing today is
very competitive; it is destined to

you

wake

Most retailers should

so.

work

for

other concern.

come

Walk

into

nrcnd

store

too

i??Jnes«

where

.busy

the

stand

about

nnm-

Z«ce hfs nentlV dis!

merchandise' he ke»ns his
under

control

nedod

attention,

brightest

off-street

ajs0

helps

to be close to

big store

lot of customers.
for

a]most

ing

small retailer

with

often

sleepy

some

buy

pays

retailer

who

out

has

pod location. Ifa you have a-good
location, make
long lease; but
jf y0U

bave

only by the

location, lease

poor

year.

re¬

Slow-selling items
so

attract

man

make

for

room

chandise.

his "know-how"

uses

popular mer¬
his welMrained

help know when
tain items

when

re-order

cer¬

'been

line has

discontinued. His merchandise has
been price marked. This not
only
helps the customer, but also the
,

manager and clerks who could not
be expected to memorize
the
ot

price

every item in the store.

Herbert

your

wnniH
would rin ,,,«n
do well

employees

thor¬

question, "Can you
use
a
cash register?" should not
be sufficient.., Make
sure, at the
beginning, That he or she will use

honestly,

you

percent

find

may
your

profit

trickling out through the register.
If you will observe
your new

most

merely

Watch

The

reports

and

supply

monthly

letter

today—
subsequently

are

same

publication!

1920's business analysts
riding high. They felt that
thcy had the problems of business
forecasting firmly under control,

Getting

which

request.

down

now

of-available

mass

use

the

conditions, in¬
cluding comment
and
analysis.
They issue monthly a four-page

compiles
T.

and

maintains

Index

Work

smaller

upon

sample

Reserve

the

but

has

index,

A third group prepares

the

prospective

than

It goes

long-term* trend is

the

form

for

lar

From

you

is
a

mists

economic

and

simi¬

state

The

econo¬

statisticians

the Bell System develop their
views

where

are

and

1930

1920

1940

—j—

_TT

2.0

Period

of Decline

use

Millions

1950

that;

FEMALE BIRTHS
18 YEARS EARLIER

1.5

(5-Yr. Avg.)

1933 they were somewhat
humble, but they had gained
a lot of
experience and continued
to give advice on
how to climb

forecasting
of

was

than

worse

business leaders

and

pql-

iticians.
situation

now

far

from thcit of 50 Ve'ars
ago.
statistics
'*
Jand
forecasts

the

over

place.

Gross

cry

Tociay,
'
"
! all

—
are

National

Product/

National Income, " Per¬
Income,
Federal
Reserve
debt,

consumer

retail

sales,

housing
orders,

new

an? inventories, to mention only
lew,

are

commonplace

subjects

any group of businessmen.

name

and

someone

will

You

have

up-to-date statistics about it.
even

and

have data

consumers

ever,

back

you

don't

what producers

plan
get

do;

your

how-

money

they change their minds.

do.

Economics

the

depression. They had
this strong point in their favor.
Their batting
average on business

The

ditions than it would otherwise be
able

The
A.

job

Co.

has

Co.

the

1.0

undergone

changes with the

many

economist

passage

years and has evolved to the

point

where

NUMBER OF FEMALES

three

consists

now

REACHING AGE 18

major subdivisions, each in charge
of a supervising statistician.
One
cf these groups is concerned with
studies in demography. They an¬

alyze the tremendous
terial

available

of the Census
in

birth

from

the

and develop

rates,

mirgations,

mass

death
also

and

0.5

1900

1910

1930

1920

1950

1940

1970

1960

Bureau

Year of

trends

rates,
in

ma¬

Reaching Age 18

and
CHART

changing

distributions. From there they
compile bulletins of useful infor-

III

age

mation

condensed

form

con-

OUTPUT PER MAN-HOUR

cerning the past and make projections into the future for the
country
A

number

prepared

whole and by states,

and

papers

issued

have
which

Rate of Choiige

Scale

been
pre¬

sent

information

major past
y

CHART

THE GROWTH OF INDUSTRIAL ACTIVITY
/

M-f

ncreose

P" Year

y
*

will
M

f
/

irritating

discourteous
And

well-paid

clerk

since

farther

can

and
one

lot of

happen.

who

studies the stock and
price-marks
will not let this

view¬

publicity,

unhappy customer

Co.,

Year of Birth

1910

will

you

answer.

bad publicity travels
faster than
good

scale,

working
for
the

group

problems

well-paid

customer's

than to he given

\our

asset to your busi¬

the

nothing

national

FEMALES REACHING AGE 18 AND FEMALE BIRTHS 18 YEARS EARLIER

employees

because

economic

states which it. serves.

applic-

the

the
A.

Bell

smaller

CHART

able to the problems of his business
and to interpret it in clear
and* concise

the

cur-

material

what

personal

each
Telephone Operating
Companies generally
has
a

information, to employ

judgment

the

com¬

fiuc-

dollars.

Operating Companies

done

mostly

analyses

cyclical

constant

addition

work

based

projections

thoroughly

such

pay

money

unintelligent

harm.

income

Industrial

have

you

employee is
point,

underlies

bulletin of economic charts show¬

ing in graphic form the currently
significant indexes.
This
group

stop-gap for them.
they use your store to

nc-ed fewer clerks. Your

ness.

3 shows an analysis
as
long-term trend in output
per man-hour as an
example of
this area of activity.
Combined
with
projections of employment
and
average
hours of work, it
the

help,

able

Chart

current

screened the applicants and found
honest and efficient

System

kiii time by
reading or talking to
friends while waiting for
pay day.
When

and

issue

Bell

which his experience indicates to
be reliable

pre¬

for

demand
for
telephone
services, including telephones and
long distance messages.

business

,Just a Iew more fi£ures and a the policy makers of his business
few more a,lalyses were needed He is fulfilling his role ii he proto understand lu"y ,he median- vides management with informaism °£ wh,lt seemed to be a weU- «°» which will permit it to take

They

ill

1909

1900

man¬

to the shape of things

future

enor¬

and

prepare

reports

nomic trends in terms of probable

eco¬

significant

rent model business economist, his
role is to select out of the
great

figures

the

that

form.

management
state

the

available

them

concise

from

excel-

are

analyses

as
Secretary of
Survey is a won-

which

revised in the

ployees

Hoover,

em¬

closely, you will learn
whether they are
really interested
in the work or whether
the job

statistics

also

and

in order to advise

own

of
the

come
in the economic sphere.
They go on from there and make
broad
interpretations as to the
significance of the cyclical fluc¬
tuations and the longer-term eco¬

concerned

pertinent

and

will

puted and also percent deviations
from this trend.

are

free

who

group

winnowing

senting

1,500 services' to

and, furthermore, there
lent

girls

much

use

assembled

analyses

and

than

long-term trends

They

groups

original
agement

beyond the Federal Reserve index

of Current
instituted
under

source

sonal

The

small

was

lies

indeed,
more

Index.

material

their

which

economy,

other

18 for the years shown

second

nomic

in that

which you can subscribe for
anywheres from $2,50 to $2,500 a year

what

some

years

rather similar movements.

lots

needed

"Survey
was

Commerce.
derful

starts,

screen

the

policy,

oughly.

understand

Business"

Employees
to

that

ended,

Fay More Money to Fewer
Mr Manavpr
».r. Manager, vnn
j ou

with

Federal

There

are

large
this is
the

the

demographic

increase

All

Price

also

and

future

the

very

age

The best location

supermarket; the important
is to get traffic into your

thing
store.

The

mous

retailer is adjoin-

any

past years

for

re-

parking

Board.

going on and he set up data-collecting techniques. Alter tiie war

out

This

Industries

blindly.

displayed

are

inventoix
knows
.selling and therefore does not
order

War

found

figures

comolaininff

l>i;d'ed

?tork

the

Activity.

were

Condition of Store

manager

with

age

and

the

including pro¬
ductivity, Personal Income, Gross
National Product, and Consumer

already born!

are

tailers will get located as near as

possible

His Role and Problems

Examine your store, your
stock,
your employees, and your adver¬

number

the

furthermore,

The Business Economist—

thinks nothing of traveling miles
for a good bargain.

the

number

work.

page

shows

example

much

customer

for

also

Contmued

reaching

number

"why."

transportation,

easy

the

Chart
females

ahead

UP.

tuations
in

guidance.

retailer

The

easy-to-read

general

Thursday, March 7, 1957

management

trends in

for

menace.

booster.

by-pass

may

not

they would
fiwe:'

and future
form

forecast.

friendly, c:ou^teous' efficient help
ferial is frequently furnished

with

good

look

need

very

attractive window displays is good

take

W. Babson

cities

important
because it has so many facets. A
clean, well-arranged store with
advertising

"know-how."

highway which

needs

Advertising is

thev

clever

est,

other concern."

some

Use More Intelligent Advertising:

seem

where

—

If they would

work for

there any "gimmick," but hon¬

given by Mr. Babson who finds that "most retailers should
wake up or go to

unique ideas. You will find
they have not used trickery, nor

how to better their competitive

advertising.

and

Iiy ROGER W. BABSON

Advice to retailers

means

realizes advertising is most impor¬
tant. Many of the ads have clever

11.1L

1111

1920

L±J-

111111111

1930

1940

1111

1950

'Excluding Government ond Agriculture—Constant Dollars

'60

1965

Volume

where

135

Number

5618

framework of economic
The

Bell

Companies
tinuous

faced

are

rates

growth

states

areas.

grams

ment

The

of human behavior

has

are

Where there are differences,

both longand

ties

has become af¬
Copley and Com¬

with

pany,

de¬

Colo.

—

Harry N.

Gurley is with Columbine

evening
(March 8th) at the Biltmore Hotel.
J. Sinclair Armstrong, Chairman

nected

with

COLORADO SPRINGS, Colo.

Lincoln
Arthur

now

has
—

con¬

Weir

with Stone

affiliated

become

Securities

Webster

South

He was for¬

Street.

Clark

Corp.,

merly with Barclay Investment

Company, Burns Building.

certainty

Exchange

speaker.

(Special to The Financial Chronicle)

CHICAGO, 111.—John A. McPike

(Special to The Financial Chronicle)

and

Two With Inv. Planning

With Stone & Webster

Burns Building.

Joins Arthur Weir

trends.

Securities

the

(Special to The Financial Chronicle)

cyclical

its

Securi¬ Commission, will be the principjil

1780 South Broadway.

Corp.,

hold

Friday

Lind

filiated

predict events with the

Columbine Securities

DENVER,

COLORADO SPRINGS, Colo.—

Clayton

Robert

Joins

Security Dealers

will

dinner

annual

even

Security Dealers

The New York

Association

Co., Denver Club Building.

N. Y.

to the staff of Carroll

been added

(Special to The Financial Chronicle)

position to

not

speed

help

(Special to The Financial Chronicle)

alter
snort-term trends

ana

are

causes

the

Copley Adds to Staff

However, human actions can

summarized
and compared with the over-all
views aeiived by the econjmLts
from
a
general point ■ of view.
they

However,

Armstrong to Address

Colo. — Morton L.
Flax and Philip N. Stewart have
DENVER,

undestanding.

greater

will

pendable than short-term
movements
about
those

programs.

problems

BOSTON,
Kirk,
are

Jr.

now

Planning

Mass.

and

—

Alfred

Robert
G.

Corp. of New England*,

Co. Inc., 68 Devonshire'Street.

they

of the economists as

The views

five, ten and even fifteen-year

trends by stai.es serves an

perspective

impor¬

they provide

tant function in that

those who are
construction

for

the

concerned

with

programs

which

mainly one
future.

are

to two years into the

year

affected

reverse.

also of consider¬

basic

its

to management
planning and it is

importance

able

these subjects as

well.

iD6 ine

Economic Knowledge

Translating
After

in¬

closely

keep

important
formed

1487-mile

in prices and

trends

basic

The

interest rates are

conclusion

Lines

e enhone

materially
cyclical fluctuations
in general business conditions, in¬
cluding
housing
starts,
and
a
longer-term view helps to avoid
excesses
of' optimism and of the

Views of managers are

reached

probable long- and Sxiortoutlook for a given economic

to the

term

the most important
into terms of
the telephone business.
If GNP
is likely to rise from $412 billion
in 1956 to $650 billion in a future

index, tnere is
task

what does this mean in
of
probable demand for

year,
terms

service? This requires
of careful analyses in

telephone
number

useful pre¬
that
the work of the economist is not
too helpful, and may be mislead¬
ing, if ne does not carry through
on
this type of presentation.
|
It seems clear to me

diction.

brief, the role and problem
business economist is that

the

understanding of the
both past and

broad

Telephone companies provide tailored
communications service for

FOR GAS

Rotary rig drilling for
This is

natural

gas

in the San Juan basin, New Mexico.

major source of supply for the

Pacific Northwest Pipeline.

natural

pipeline to Pacific Northwest

gas

at a

arrive

order

DRILLING

translation

trends of the times,

prospective, the formulation of
clear statement of tnose trends

One of the
recent

great

years was

construction projects of

completed just

few months

ago.

Its the Pacific

larly known

Northwest Pipeline, popu¬

the "Scenic Inch" because of

rugged,.picturesque territory through

the

which it passes.

and

their
specific industry

interpretation as to

significance to a
company.

Companies
graduates
each year with dilferent special¬
ties, ranging from engineering to
mathematics
to English and
to
The

Hell

recruit

Telephone

college

many

generally

They

economics.

he looks
field and seeks a man
right academic back¬

the
the

with

ground
working

and who has
familiarity

acquired a

with
the
business. Gen¬

of the
erally, he is kept a few years on
economic work and returned

problems

management stream
organizations.

again to the

operating

the

There

some

are

special

who remain

much

economic work, for

longer in the

reasons,

but

numerically

minority. The
abilities to understand, interpret
and express simply their thoughts
are pai amount qualifications.
they

the

are

dian

Oregon, and Seattle, Washington.

alert
to

economist,

highly

What

are

want

where

Such

pipeline requires constant super¬
control, and reliable com¬

munications

are

RUGGED COUNTRY

extremely important.

Fish

After

long study, Fish Northwest Construc¬

Inc., acting

Pipeline Corporation, selected

specialized service.

is in

use now;

other services

complex
you
are

"We

tell

vided by the Mountain

furnishing of such private line service

years

and offers

many

developed

New services are
to meet

States Tele¬

phone & Telegraph Company,

the

Telegraph
and the Bell System's

Pacific Telephone and

in the future.

rapidly in
opportunities for '

by telephone companies has grown
recent

Communication

constantly being

Long Lines Department, in co-op¬
eration

unth

the

General

Tele¬

phone Company of the Northwest
and the Midland Telephone Com¬

particular needs.

of Moah, Utah.

live

do is to tell

now,

PIPELINE ROUTE.

facilities along the route are pro¬

Company

The

the Powder River, near Baker, Oregon, at

economy.

where

concise, and non-technical lan¬

First

Voice communication

telemetering, teletypewriter and
are

across

telephone

facilities based on cost, reliability,
availability of alternate routing and experience
company

Northwest-Constructors' photograph taken as they were

pipeline

for Pacific North¬

tors,
west

as agents

the

pany

headed, and tell me about it

guage.

It carries

vision and automatic

Wants

executive will say in

effect
a

from the

vitally needed fuel to the last sections of the
United States that did not have natural gas.

the future.
Executive

the

What
The

now runs

fields in New Mexico to the Cana¬
border of Washington by way of Portland ,

his organization

over

pipeline

producing

are

employed initially in the oper¬
ating end of the business and put
to
work on operating problems.
When the economist needs a new
man

This 1487-mile

in terms of

Working together to bring

people together

...

BELL TELEPHONE SYSTEM

Nadesii

associated with Investors

reconciled.

are

com¬

today than
millennium
not been reached. One of our
but

before,

ever

Two With Carroll
(Special to The Financial Chronicle)

is greater

effects

and

the
deci¬

of future

when he

can

economic

prehension

construction

basic

the

astronomer

predicts the next eclipse.
I do believe that general

and that,
wide

Long-term trends are more

These estimates, which
compiled locally, constitute

that

trends do exist,

sions of managers.

stores, etc.
are

say

cumulative result

factories,

housing,

for

best on the

departures from these trends
occur
from time to time as

in terms of new con¬

scenes

struction

while broad

people who are familiar with the
local

area

developed on a grass¬
by the local operating

are

roots basis

that
assign¬
stated but he should go
will reply

economist

that economic analysis
and forecasting is not an exact
science.
He is working in
the

the many different ur¬
The construction pro¬

among

ban

The

he will do his

urban and also

between rural and

of my

business."

widely
and
as

vary

different

among

needs.

customers'

the

then tell me in terms

growth and expansion to

meet

measures

standard

and

Operating
with con¬

Telephone

economic

the

analysis.

(1123)

Financial Chronicle

The Commercial and

within

headed

are

laying

15° below.

The Commercial and Financial Chronicle

Appel,

bank.

of the

care

News About Banks

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

creased

George A.

Treasurer

Dutton,
Fidelity

Company, Pittsburgh, Pa.
Mr. Dutton has retired from his

CAPITALIZATIONS

familiar post at the bank's Oliver

Building Office, which at one time
was the Western Savings Bank.
Promotions
five

officers

tan

branch

National City

John

Office,

announced for

were

assigned
offices

to Manhat¬

The

Bank of New York.

Blumers,

34th

promoted

was

First

Street

from

As¬

sistant Manager to Assistant Vice-

President.
Robert W.

Deuchar, manager
Office, was promoted

Cashier and assigned
to the 34th Street office.
J.

Ryan, Jr.,

Office,

Broad¬

promoted to As¬

was

Buyer,

Assistant

Man¬

the 32nd Street Office, was

ager at

promoted
to
Manager and
signed to the Chelsea Office.
Gordon

Torode,

Robert T.

•

headed

by R. L. Ireland, III,

Assistant

Andrew

pointed

Snyder,

joined

Chemical

Secretary since 1955. He is located
300

Park

Avenue

Office.
❖

Victor

President

engaged in the bank's
operations, systems and planning
*

Chairman

the

lour

and

insurance

companies comprising the America
Fore

Insurance

elected

Group, has been

trustee

The

Hanover

Bank, New York.
sis

♦

American Trust Company, New
York, N. Y. was given approval on
Feb.

stock
of

increase

from

its

$1,250,000,

Mastronardi

Lafayette

$10

each,

sisting
same

New

capital

con¬

the

.Is

of the Standard

pany

(New

elected
York
it

Oil

Com-

First

New

York

The

value

Oil

joined the Standard

Company

1935

after

Federal

(New

many

Jersey)

years

Reserve

with

Bank

the
New

York, where he was, prior to 1935,
Deputy Governor in charge of the
foreign business.
During

hank's
the

period from

Dec.

31,

Jan.

Federal

20,

Mr.

1956,

Chairman

Crane

the

Reserve

York.

Committee

for

1953

Board
Bank

the
New

Economic

was

Trustee

the

Devel¬

opment.

The
also

was

were

announced:

trust

Evarts,

has been
division

bank's

will

new

for

some

the personal

appointed

urer.

who

with
the

Assistant Treas¬

main

office,

assigned to the

office

59th

May. He will engage in new
business, development activities
personal

and

general

trusts,
banking

cus¬
ac¬

counts.

Straut, Jr.,

was

apr

Assistant' Treasurer

and

assigned to the bank's eastern
district headed by
Granger Costi-

-1

kyan,

Vice-President.

cover

the

states

Combined capital stock and sur¬

its

and

issue.
will

offered

will

Maryland,

which
of

one

rights to the

were

offered

share for each

❖

new

its

the

late

act,

Banking
the Judge

group was en¬

application ap¬
Commis¬

Banking

completely

the

satisfied
responsibility

applicants,

satisfied

new

likelihood

satisfied

with

the

applicants
and
parties to our

are

plication would want
the

which
tain

to thank

thousands
of
our
their expressions of
and good will
without

for

support
the

all
ap¬

literally

friends

over

bank

success.

others who

the

Bank,

have

was

all

of its

seven

commercial bank in

the
to

there is necessity for a

Public

our

shares held, expired Feb. 13, 1957.

first

for

Louis

and

new

Honorable

with the fitness and

3,857 shares

Company

the

Judge of the Circuit
Ingham County. Upon

failure

."All

Subscription
ratio

Court

sioner

new

investors by a
dealers headed

and

Coash,

titled

Cleveland.
stock

had ruled that

for

97% of the

of security

McDonald

subscribed

The balance of

group

decision

proved

WHAT

Shore,

our

determination to main¬

free

our

institutions

and

MAKES

CH ESSIE'S

common

(18,270 shares,
*

par

liiilk

CHEMICALS

CANADA

|
pPETROLEUM
If
AND

members

are

Municipal Securi¬
ties Department and are promoted

lUDINGTl

:|CHEMICALS

from the rank of Assistant Secre¬

BUFFALO

tary. Mr. Smith also announced
the appointment of Lloyd L. Diet¬
Assistant

Manager of the

isiiiiiii

Mr. Berryman, who is Manager
of Bond. Distribution,
has been
with

the

department

since

GRAND RAPIDS:

1933
AUTOMOBIL

Assistant Secre¬

^CttVELAND

JOlMi

Mr.

Brown, who is Manager of
the
Municipal Consulting Serv¬
ice, joined Marine's Municipal Se¬
Mr.

Dietrich

Sheridan

gust

has

Plaza

1955

served

office

the

since

Au¬
METALS

Administrative

where
years

Previously he was Chief
the Rand Building office,

had

joined

for

served

several

the

capacities.
He
City Trust Com¬

old

pany

associated

1923

having

subsequently
Buffalo

with

merged
which

WOOD

previously
Bank

America in New York.
of

AND

CHEMICALS

various

City Trust
with

later

Bank

iSViLLE

became

part ol' the Marine Trust Company.
if

tyW£ SULftfUR

K-

Fair Haven National
Bank, Fair
Haven, N. Y., with common stock
of

$25,000

was merged
business
Feb.

Lincoln National

Company
N.

Y., with

500,000.

Bank

the

15,

into
Trust

effected

was

WvivX

and

title

At the effective date of
merger,
receiving association will have
capital stock of

the

$1,895,000, divided

into
189.500
shares
of
common
stock of the par value of
$10 each;
of

$3,470,000:

1
in

National

don, N. J., with
went

Bank,

common

into

and

at
was

8:00

Committee:
Abraham

p.m.

absorbed

by County Bank and Trust

Paterson, N.

Hale-

stock

voluntary

effective

(EST), Feb. 5

pany,

un¬

of not less than $1,481,-

Haledon

$175,000

and

profits, including capital

Com¬

Liquidating

Virginius J. Grassey,

COAL

$1,-

"Lincoln National Bank and Trust
Company of Syracuse."

reserves,
439.

WORLD'S

Syracuse,

stock

charter

and

Syracuse,

common

The merger

liquidation

Charles B.
pointed

875,000

Supreme Court de¬
upholding the May 23, 1956

cision

the

have

'Application

Commissioner

by President Francis A.

todian

from

Shareholders

121,143 shares

Detroit's

the. Bank's

surplus

handle

increased

the

for the right to organize' came in
the form of

an¬

Bank

Bay

Smith. Both officers

divided

and

Pitts¬

burgh's Golden Triangle that
didn't collapse during the depres¬
sion.
..,.'
vj:•
it

outstanding

con¬

Marine Trust Company of Western
New
York
were
announced
on

Madison

and

only two other

the only small bank in

been

Assistant Vice-President of the.,

Street, headed
by Donal C. O'Brien, Vice-Presi¬
dent, which is scheduled to open

Avenue

the

Fidelity,

officers at the time of liquidation.
He recalls that Western Savings
was

Total

were

moved

$5,000,000 increase in capi¬
surplus.

The appointments of Homer R.
Berryman and Edward L. Brown

under

following promotions

Prescott
years

increased

been

Crane

were

tal and

$25).

Clerk at

Massie, Chairman of
Board, and Hulbert S. Aldrich,

Mr.

There

Bank

for the

1,000,000.

Cashier of the

$2,000,000 to
capital and $2,375,000 to
surplus.
These additions plus a
transfer
of
$625,000 to surplus
from undivided profits accounted

Assistant.

President.
•

sold

added

institution,

28.

capital stock from $362,500
to
$456,750 by a stock dividend ef¬

been

)

March 5 by

1947.

was

Savings
was

duties

but

"Approval
125,000

stock

new

Feb.

was

National

Company

New

has

Company, New York,

announced

Adrian
the

Director

Trust

was

Jersey)

Western

his

who will head the
announced

tinued—

curities Department in 1947.

E. Crane, a Director and
Member of the Executive Com¬
mittee

until

first

tasks,

War

continuous.

tary since 1946.

Dutton's

clerking
ahead

World
was

sale

capital

will open here within
months, Joseph F. Vernelle

years,

few

and has served

par value.
if

Mr.

there

The
new

.'Thursday, March 7, 1957

27.

Jay

Bank

York,

Feb.

par value'

$1,750*000,

175,000

during

seven
a

dent.

Director of The

National

Brooklyn,
nounced

Charles

consisting

125,000 shares of the

Army
service

Sheridan Plaza office.

rich
*

election

March 4

Herd,

division where

fective Feb.

Helm,

Exchange
Bank
in
194C
where he has served as Assistant
bank's

ap¬

was

activities.

Trust
ap¬

Vice-President

Murphy

Assistant Secretary in

will

The

Harold

Jan.

1907, Mr. Dutton,
than 16 years of age, entered the
bank
and
applied for his first
job. Except for one year in the

time

the administrative

Corn

the

Dakota.

the

cover

South

He will

Chairman.
Mr.

divi¬

t)f Chemical Corn Exchange Bank,
New York, it was announced on
5

mid-western

Vice-President.

The

Snyder has been

Assistant

March

sion

bank's

as¬

Manager at the Madison Avenue
Office, was promoted to Manager
succeeding George R. McGee, Jr.,
who is retiring.

pointed

the

sistant Cashier.
John

Peter Haaren was appointed an
Assistant Treasurer and assigned

Illinois, Iowa, Wiscon¬
of
sin, Minnesota, North Dakota and

to Assistant

James

Delaware, New Jersey and Penn¬
sylvania.

states

the Chelsea

way

from

$30,000,000 to $35,000,000, it was announced on Feb.
18 by Loring L. Gelbach, Presi¬

than 50 years

for

plus of Central National Bank of
Cleveland,
Ohio,
has
been
in¬

Trust

Bankers

and

REVISED

ended

Assistant

career

has

liquidating

;

Fiering and

Ernest

RICHEST
BIN

PULP

;

Volume 185

recognize
been

,*;

as free
would have

free,

diificult trial.

"Public
initial

will

Bank

capital

have

$2,500,000, con¬
sisting of 100,000 shares of stock
at
$25 per share.
These shares
will be made available in $25 units
to

large

number of applicants

possible."

Effective

Feb.

capital stock

21, the common
of The Laredo Na¬

tional

Laredo,

Bank,

increased
000

from

Texas,

$400,000 to $425,-

$425,000 to $500,000 by the sale of
new

stock

(5,000 shares, par value

and

International

agricultural

well as.invitations from
government and business leaders

led

Bank

of America's

The

Idaho

M. O. Sesenna, Assistant

(Inter¬

Boise,

Idaho,

increased

its

capital stock from $4,200,000 to $4,500,000 by a stock
dividend and from $4,500,000 to
$5,000,000 by the sale of new
stock, effective Feb. 18 (500,000
shares, par value $10).
common

country, Russell G. Smith, Execu¬
tive

assistant, William B. Johnson.

Calif.,

Francisco,

open

Vice-President, disclosed.

"We

opening a branch there
to help provide the banking serv¬
ice required
for the continuing
are

25,444,316,

To Lecture In Series
On International Aid

development

and

Albert C.

Guatemala."

inter¬
banking
activities
for
America N. T. & S. A.,

national
Bank

Bank

year,

board

parent organization of the whollysubsidiary Bank of America
international

permission

branch
the

had

Federal

received

been

from
and

shortly in Guatemala

City.
pointed manager," Mr. Smith an¬
nounced.
"At present
he is an
in

section

our

Bank

Corp.

1st

to be
March,

Sfcs.

"Problems

special

internal

tax-paid

from

2,000,000
reserves

Its

Aid:

announce

ducted

Range

Impact,

and

con¬

interna¬

Huth,

Arno

guest

series, International

tional communications expert.

reserve.

Our

Reporter

Governments

Swiss
By JOHN T.

Viktor

Dr.

after

writing

Corporation

Bank

that

were

Swiss

will

Hochschild

Mr.

Sfcs.

transferred

Board

March

8:30 p.m.

CHIPPENDALE, JR.

Pfrunder and Kurt Vischer.
The

Thursday,

Research,

closing the accounts for

the

In¬

tries" at the New School for Social

(as last

reserve

lecturer in the

Before

will speak

American

dustry in Under-Developed Coun¬

fund.

Metal Co., Limited,

2,000,000

2,500,000

Hochschild, Chairman

can

for new
buildings
to place Sfcs. 4,000,000 (same) to special reserve

bank's

the

directors

elected

the

the
and

dividend of
9% be paid for 1956, compared
with 8% disbursed for 1955, and
to credit 4,000,000 Swiss Francs to
a
special reserve account.
Also

meeting

general

Basle

allocate

year)

Basle,

approved

that

management

the

Vice-President

American

also

Harold K.

of the Board of Directors, Ameri¬

(as last year) to the pension fund,
to

1956

recommendation

"William H. Bolin has been ap¬

Latin

last

held

was

Stockholders

the Guatemalian Government and
it will open

which

ing

the

Board

Reserve

end

the bank's
directors by the share¬
elected

contribution

Switzerland.

said

banker

establish

Basle,

holders at their 85th annual meet¬

owned

that

was

the

1957, it will be proposed to make

Corporation,

Switzerland,

Mr. Smith is in charge of

General Manager of the

Swiss

3,148,-

against Sfcs.

932,805.

held

Nussbaumer, who re¬

signed

progress

Sfcs.

amounts

3,391,980,239

sj:

:I:

net profit for

against Sfcs. 22,745,129 last year.
The total assets amount to Sfcs.

formerly at Osaka, Japan, and his

Assistant

Confidence in Guatemala's spir¬

Manager,

branch in that

decision to

The

National

Sfcs. 3,156.488—the
1956

recently at the
Tokyo branch,
Arthur Giraldi, operations officer,

San

national),

First

Banking department

Francisco."

San

Other officers of the branch are

(International).

$100).

Bank,

industrial

ited

activity

was

stock dividend and from

(1125)

The Commercial avcl Financial Chronicle

obligation

our

remain

men

5618

Number

contention

the

of some

interest rates have entered a

off

that fluctuations

future.

foreseeable

money

that
interpret to mean

market specialists

plateau, which they

and down will not be too significant for the
the other hand, there are other money
the demand for credit will tend

market followers who believe that

after the income tax borrowings

to decline

One

0 A D W ?
R 0

AIL R

of a scries tilling what Chesapeake and Ohio

doing to make litis

bigger, better railroad.

and the coming Treas¬

financing has been digested. There seems to be very little
doubt but what the monetary authorities are still looking at the
economic picture with inflation tinged glasses. This, however,.could
be subject to change without too much prior notice, if certain of
the business indicators should continue to worsen.
Short-term money, irrespective of the near-term demands, ap¬
ury

pears

should prevent these rates from
bear the brunt
being available

to be building up and this

advancing too sharply. The long-term market will
of the market uncertainty in spite of more money
these issues.

to buy

fe."

Borrowings for Tax Payments

MY.
One of the
so

Chessie's railroad is growing

reasons

fast is that it

serves

fast-growing .industrial
on

Hampton

9,: sjmmwA

harbor. From there it reaches west to
and to

.form

Chicago,

Ludingtoiv Mich, where its Trainferries
time-saving short cut between the
"I'

North*

Nonetheless, it is evident that such loans.will
tightening effect on the money market, even though

Banks will give positive help to

market in order to tide it over the March 15 tax period.
These borrowings will not have a lasting effect on the money
market and, as soon as this phase has past, which shoujd not take
.too long, there should be a more favorable tdnNlto<4tj£ market for
the money

fixed income
'

•

obligations,
*

■

•

Increased Investment in Debt
'■

•
.

Halfway between, it
-richest coal bin,
meet

well

now

passes

through the world's

producing at top speed to

ever-increasing demand, from abroad as

home. Mines

the ( NO have had

spite of the expressed demand

car

supply to

this vast tonnage

move

market.

larger amounts than has been seen
To

for loanable funds, which is

bearing obligations in
rather considerable period.

of these funds, according to
not only from the proceeds of the sale of com¬

stocks, but also from money

mon

not an unimportant part

be sure,

which in the past would have

Also, it is indicated that money

in equities.

been invested

past is being put to work now

serves

the booming

chemical and metallurgical

in fixed income issues.

monby"

1o the present time not too much of this
being invested in Government bonds because they are not yet
attractive as corporate and tax-exempt obligations. Nonetheless,,

is
as

I®
'

■■

■

MM*

\m-xmtnmap

NORFOLK
.

mmmm

—

-<f '•

w&M

Wmm
•

Hal
Wmm

...

P PP

the varied industries of Ohio and
automotive

valleys,

Indiana; the

region radiating from Detroit; and

funds (some of which must

C&O's expansion program is continuing.

Of major

this

fairly sizable buyers

Nearly half ef Americas overseas export coal
goes

ore a

year

freight

the ever-increasing

Virginia.'An $8 milium hulk cargo pier capable
more

new

cars

to cost

Chcssie's railroad is'growing

through tJicC&O port of Newport News,

of handling

9000

year

$70 million.

and going to meet

resources,

brochure describing industrial resources

and opportunities in

comes

*3*99 TERMINAL TOWER,

CLEVELAND 1, OHIO

Railway

that a long-term

bond would have

To try and guess

what the Treas¬

lost cause in the past. None¬
theless, with long Government bonds not yet in a competitive
position with corporates and tax-exempts, it does not seem as
though the Treasury will be too much interested in the adjustment
yield which would have to be
as

attractive as the

made to make the more
non-Government bonds.

distant

the new money borrowings of
considerable degree the pattern,,
which was used in the recent refunding, namely a certificate and
an
issue within the note maturity range.
More money * will beavailable to the Government by continuing the larger; <veekly
Therefore,

and Ohio

of obligation that will

will do in its financing has been a

Governments

discussions about the type

financing.
been some talk

There has

C&O territory? Address:

financing will take place on March 18.
borrow in order to replenish its cash

place in the coming operation.

ury

new

Mounting

the Treasury about to

be used in this

will begin operation this Spring.

like the

With

service needs of its territory.

than 8 million terns oj impel t

Would you

especially

market in

only is the income tax period haunting the money market
again but the impending new money financing by the Treasury is
also having an influence on the thinking and action of those oper¬
ating in the money markets. Because Treasury balances are very
low, it was no surprise when the announcement was made on
Monday that new money

are

buy Treasuries)

of Government bonds,
quotations ease down or as offerings appear in the
size large enough to make it worthwhile.
have been

Not

importance to its shipping customers

"wm.

certain public pension

Treasury Cash Needs

fast-growing Southern Ontario.

which

financing in the not too distant

To be sure, up

districts of the Kanawha and Ohio River

Securities

putting money to work in fixed income

are

has been available for mortgage

'»
'

expected to continue lor awhile, there is more money now avail¬
able for investment in long-term bonds than has been the case for
some
time.
Institutional investors recently have been, and still

reports, have come,

full coal

tend
they
monetary authorities
funds which could be

It is believed that the Central

and the East.

west

might not be too sizable, and in face of the
making available to the lending institutions
used to ease this strain.

Roads, Virginia, the country's second busiest

money

was a year ago.

to have

empire. Its eastern terminus is

■

market seems to be somewhat more concerned
with "income-tax payment" borrowings, because these loans will
no doubt increase
slightly the pressure which is being kept on
interest rates and credit.
The amount of credit which will be
needed to meet these demands is not expected to be as large as it
The

the

it is believed that

Treasury'will follow to

i-ifforin(fo

Trpnsiirv

Pills.

The Commercial and Financial
Chronicle

(1126)

Continued

Everett King With
J. N. Russell & Go.
CLEVELAND,
Russell

By OWEN ELY

merce

New

Union Electric Company

Electric

subsidiaries
and

35,000

service

ana

650,000 electric

customers,

gas

of about 19,000 square

area

miles

Company

serves

Mis¬

north

and

central

souri, the lead belt in Southeast
Missouri, the industrial area across
the Mississippi from St. Louis in
of Iowa.

and the southeast corner
About three-quarters of

electric

revenues

Illinois,

Louis

St.

Electricity

area.

94%

about

tributes

con¬

revenues,

balance from

with the

the

from

come

steam

gas,

heating, etc. Electric revenues are
about 34% residential, 22% com¬

and

industrial

34%

mercial,

the

Louis

known

"gateway city" being strategically
located as to raw materials, mar¬
kets, and transportation.
second

It ranks

American cities

among

trucking

and

railway

center,

and is at the center of the world's

inland waterways system.

largest
Its

location

and

the

near

geographic

population centers of the na¬
enables it to offer industry

tion

unrivalled
The

marketing advantages.
area
surrounding St.

service

Louis
and

includes

deposits

rich

farm

lead,

Some

347

different

but

area,

types

single

responsible for

clay,

resources.

in¬

of
in

represented

are

lands

coal,

silica and other mineral

dustry

that

this

industry is
than 4.1% of

York

of its most

ing the

vigorous periods. Dur¬
1954-1955 over one

years

billion
ment

one

dollars

spent

were

capital invest¬

committed to

future spending on 270

industrial,
commercial, institutional and pub¬
lic projects. Bond issues of some
$165

million

finance

have

been

clearance

voted

blighted

areas,
construction
of
schools,
other public buildings, and an ac¬

celerated construction program for
modern

expressways

and

Louis

St.

in St.

County.

Louis

Voting of

these funds has made available up
to $325 million in federal and state

funds,
lion

this

and

generate
of

expenditure

estimated

privately

struction

the

will

$350

mil¬

financed

con¬

cleared

area

slums.
Electric's

earnings
have increased steadily from $1.24
in 1952 (when the stock was first
.distributed
North

stockholders

Company)

American

$1.70 in

1955

and

about

the

same

amount in 1956.

Earnings last year
disappointing for
several
reasons.
Temporary kwh sales to
Electric Energy, Inc. dropped from
were

$5.1

million

million in

1955

1956.

only $1.4

Summer weather

cooler compared with
Hydro conditions were the
was

since

1934, increasing production
by $1.1 million, or about 50

costs
a

share; and the most
in

storm

and

revenue

penses.

non-utility
small

other

ex¬

hand

the

profit of about
from

taxes

sale

American
from

sale

offset

ings, the net favorable effect
earnings being about 60
If
and

unusual

minus,

ratio

equity

have

respectively.
estimates
in

kwh

are

been

$1.55 and $1.65,

In 1957 the

company

increase of 9 to

sales,

and

President

estimated
$1.80

hydro

without sale of additional

expects to spend
about $330 million for construc¬
tion
in
the
five-year
period
The

company

1957-61, of which $200 million or
more
would be raised by sale of
securities.

10%

McAfee

million

would

not

1961

ferred

should

and

13%,

common

equity 34%.
Regarding dividend
President
McAfee,
in
a
to

raising
of

the

in the

earned

million, giving

policy,
recent

stated
for

reasons

dividend

to $1.52

1956:

several

were

from

rate

last quarter

surplus of $39

assurance

that the

could be rhaintained

rate

sale of

in
a

addition

Everett A.

He was

Cleveland

the

Association

1951

Cleveland

the

Secu¬

Exchange, and its successor,
Stock
Exchange,
until

Midwest

setback in business;
220 non-recurring income- in

And

75th

Anniversary

the

anticipated steady growth;
and the anticipation that, begin¬
ning in the last half of 1957, about

Exchange

celebrating

this

Anniversary
The

observance

launched

with

the

Grand

Dinner,

March
of

Ballroom

Waldorf-Astoria for

800 per¬

some

including the Ambassadors
principal coffee and sugar
producing nations of the world.
Senator Homer E. Capehart, Re¬
publican of Indiana, was the fea¬
the

tured

of dividend payments will be

free of Federal income

speaker.

capital.

should

year
seems

likely

should

be tax-free

the

study

that

has

portion

some

thereafter

but

extended

not

be¬

yond 1961.
Union

First Boston

Group

rate

original

cost

5.94%

1956—a

for

.36%

from

However,

the

coincide

for
with

perience,

was

reduction

rate

purposes,
up

year.

the

down to

hydro ex¬
this adjust¬

average

and

ment, the
6.14%.

return

is adjusted

return

basis

after

1956

return

becomes

Union Electric has been selling

recently at 27 V2 to yield 5.5%. The
price-earnings ratio is 16.1 based
on
1956 earnings and 15.3 based
the

estimated

1957

earnings,
excluding the non-recurring 220.

rities

conducting

a secu¬

business from offices at 240

First Avenue.

4.84% cumulative convertible pre¬
ferred stock to its common st ckholcters

the | new

The

Co.,

—

$37 V2
A

with

now

Federal

Allyn
Street.

Hemphill Noyes

BOSTON, Mass. — Richard H.
Olney has
joined
the
staff
of
Hemphill, Noyes & Co., 10 Post
Square.

unsubscribed

MINNEAPOLIS, Minn.
R.

Westcott

coal

Pillsbury Building.

Arms,

now

Net

stock

into

for

stock

Ihe

common

The

F^rst

purchase

shares at

any

the termi¬

March 25.

the

from

proceeds

sale

trailer

the

San

aboard

the

flat

Francisco.

Additional

"Journal's"

over

San

Piggyback
including the Erie,

route

plant

Cotton Belt, Texas & New Orleans

Southern

and

Piggyback

Pacific railroads.

brings

the

prof¬

years

ago,

people

many

lose

was

know

Lose

natural

transmission lines, gathering lines,

gasoline

stations,
distribution

systems
and
properties through and by

presently transports and

than

ers

natural

gas

764,000 natural gas consum¬

portions

Texas

and

year

ended

Dec.

Oklahoma.

enough.

transporting

But,

the

nation's

carriers

com¬

t^an

mor0

2.5%

from 1950 to 1955. That's
25% in 10 years to 1960.

over

the

transportation
to

traffic,

"Who

most

this

the

going

whom?"

industry
growing volume

But:

not:

grab this

"How

can

carry

efficiently this annual addi¬

the transportation busi¬
learning, too, that there

ness

are

fixed amount of traffic in the

countrv

fought

and

over

divided between the various agen¬
cies. Better service and fair rates
more

For

fi're

da"s

ship,

and

$270

hour, witn every siinggoing clown the hatch, you
an

can

S105

per

fore

April

1961,

redeemed

to
af.er

1972.

$100

per

April

for

had

one

back

for

forward

the

time

the

for

the

rivals.

Good

sound

other.

have
news

lik^

for

brilliant
in

the

service, this time

bad

carrying

record

transporta¬
on

the prin¬

ciple of teamwork and cooperative
effort for the benefit of the ship¬

ping public.
I have been

for

shipper's

all

noting with interest

tremendous

loss

and

enough to give

first class

when
in

aboard
stead

four
in

re-

and

the

case

have

you

execu¬

uLers.

roll the cargo
highway trailer, in¬
you

holding the ship in port

five days, she's in and out

eight hours

instead

And

the

damage

shipping

the
still.

and

cargo,

exasperating delays, and

But,

most
meet

handling
his

standing

ship
the

the

handling

But,

goes

pays

the

this

from

tive

un¬

Savings

transportation.

costs

And

and

shipper thinks he's paying

what

shipper's

less.
spending

dollar

50%
cargo

handling, you cut this, not to 25%,
to 10%, but to only 3%—and
3% is the highest figure I ve seen
on
a

Fishyback loading costs. Now,

cost cut from 50% down to 3% is

nothing

short

revolutionary,,

this change is on the way to
revolutionize deep water coastal
and

You

highway

railroads

formula

improvement
tion

the
\

55%

goes

might

would
all

waste

your

enthusiasm

suppose

trailers

highway

trailers

Leon¬

going down

money

Coastwise carriers report
to

Piggy¬

prices ranging from
share if redeemed be¬

the

see

that

Piggy¬

con¬
any¬

But,

deemable

takes

four

news

re¬

load

back is good news for both.

in 1955.

methods,

and

770

preferred stock is

the

from

ducing Co., amounted to $95,361,-

new

back

big headache of
shipping has been the cost

lost.

income of $12,682,675

carriers

shipping!

business for all.

long

$14,111,151.
compared with total operat¬
revenues
of $87,615,439 anf

ship¬

not

tion to the traffic load?"

owned

and net income to

unload

from

question
to

the

This

them

lots

The

ventional

The

31,1956, total operating revenues carriers and
of the company and its wholly- 'been
intense

subsidiary, Lone Star Pro¬

about

see

and

of loading and unloading.

per year

mean

fiscal

the

limelight.
coastal

Traffic

that nobody is los¬

now

production is

gas

will

Lakes,

Fishyback

Will

ing traffic to Piggyback. Let's not
forget first of all, that the yearly-

faces

natural

intercoastal

traffic?"

Nobody

grew

interconnected

writes

board have put the coastwise and

dollar

Who is going

bined

erates

also

from?

come

pay the company's' current bank
borrowings, presently aggregating

and op¬

Pro¬

expense.

I'll tell you why.
Loaded trailers carried

ing to

motor

owns

little

very

them.
«

asked: "Where is this business go¬

and

Lone Star Gas Co.

running

Great

load

roads

$20,000,000
made
to
provide
a
portion of the funds for the com¬

the

rat hole.

four

additional

with

and

Barloon

growth got under way some three

ton-miles of

preferred stock will be used,
with cash on hand, to

of draft

itable partnership. When the mo¬
mentum
of
rapid
Piggyback
or

present

where

railroads

and the motor carriers into

can

definitely think

the

will

The

ships carrying loaded trailers be¬
tween American ports on the high
seas and says that we may possi¬
bly look forward to seeing trailerships on the Great Lakes, too. I

Railroad's

printing press.shipments, destined
for

all

harbors

major

carrier, for ex¬
load
1,260 tons

ore

you

fessor

The

Buffalo,
the
Chicago and the Santa

and

com¬

feet

of cargo for every

increase in

was

—

Hoboken, N. J., Terminal.
moving to the Golden Gate

foot

first

truck-trailer.

loaded

was

Lakes.

big

Piggyback freight
shipment of 18

at the Lackawanna

car

ample,

This

out

to internal

mean

deepen

Great

points

iOt.

together

the

The

Incorporated,

Francisco

the first of several

—

picked

job
of

San

growing job. The
freight hauled by rail¬

affiliated

—

tons

This

nation of the offer

net

Arms

(Special to The Financial Chronicle)

ard

common

headed
Corp., will

Boston

ing

With J.

shipment.

thereafter.

which

(Special to The Financial Chronicle)

Office

group

For

Joins

preferred

convertible

Chroncle)

William

one

stock at $33M)
per share to and
including March 31, 1967, and at

Aliyn

Financial

Mass.

Inc.,

held of record March 5, 1957.
stock

distributes

BOSTON,
Holmes

basis

planes,

(Special

the

compressor

With A. C.

Barloon

depth will bring down operat¬
ing costs—and bring them down a

ex¬

from

enroute

believed

Francisco,

Gas Pfd. Stock Offer

coast-to-coast

programs.

VISTA, Colo.—Harvey

L. Sanderson is

pany's 1955 and 1956 construction

Sanderson Opens Office
MONTE

York

what

West¬

limiting depth are 2IV2 to 25
Adding from IV2 to 5V2 feet

"Wall Street Journal"

press

New

Underwrites Lone Star

each

Electric's

net

printing

Wabash

For

non-taxable.

traffic.

now a

excellent
Marvin
own

University.

channels

the

"Harper's

feet.

happening in
For instance,

are

Lackawanna

taxes, as a
Lone Star Gas Co.
the four
is offer ng
years
following
1957
approxi¬ "rights to subscribe at par ($luh
mately 40% of dividends in each per share) for 154,834 shares of its
return

right

cities

interesting and

things

the

sons,
of

sorts of

Piggyback
formally

was

Diamond Jubilee

and

75th

its

year.

1957;

20%

All

citing

merce

the

are

to—a boost

Professor

what it wil

lowest in history;

The New York Coffee and Sugar

there's

Professor

service,

rates

Sea¬

between American

Reserve

ern

tne

Piggyback

in¬

big boost

Barloon of Cleveland's

over-the-road

damage

Lawrence

In the current issue of

the

and

trade

Magazine,"
article
by

movement.

loss

St.

re¬

the

—

right within the country.

railroads

Piggyback gives the shipper the

Coffee & Sugar Exch.

the

But,

been

has

picture

that

service of the truck trailer.

truck

the

is going to give

example, Piggyback provides
the shipper with the tailor-made

trade.

idea

new

into

to internal commerce,

For

service

foreign

way

itable business.

fine

idea

more
profitable
business.
Piggyback gives them more prof¬

1955.

the

finds

suddenly

ocean,

troduced

want

member

Stock

Third:

becoming a world seaport.
eyes are fixed on the coming

cently,

Piggyback gives him

costs.

the

wave

highway motor carrier wants

lower

King

temporary

with

through

non-recurring
mine ap¬

and

Reception

analysts,

security

tne

history that

itself

why 1 think

lower costs.

Department tor 19 years.

Traders

Seaport

maj^r city located over 500 miles

so.
Piggy¬
three-point
foundation.
First:
the
shipper
wants better service.
Piggyback
gives him better service. Second:

Trading

rity

moved

coming of the

often in

is not

All

Here's

the

over

Cleveland As
It

back stands oma solid

Co., followed
by Fulton,
Reid
&
Co.,
Mr. King was
the

will

cars

lleet

from

1919

Manager

nation's

is too far off.

Maynard

Murch

bonds 53%, pre¬

stock

$1.40

until

At the end

ratios

follows:

stock

financing

occur

I960.

capital

equal

common

equity

probably
time after

about

about
and

bonds

Further

stock.

selling

amounts

some

box

the

instead by trailers moving on flat
cars.
And, I don't think the time

his

to do

permanent financing this year,
1958 expects to raise $50-60

any

has

earnings (in re¬
inquiry) at roughly
share, assuming normal

conditions;
on

not plan

does

but in

this there will be

profit

of about

range

with

719,000

firm's Trading

President

1957

shares.

both
nlus
eliminated from

revenues.

sponse

pro¬

factors,

the years 1955 and 1956, it is esti¬
mated
that
per
share
earnings
would

have

have helped to keep the

gram and

and

share.

non-utility

various

operations)
loss of earn¬

later

properties.
These proceeds
gone
into the construction

necessary

and

itself

Plan

(including
longer con¬

carried

the

Starting

St. Lawrence Seaway.

practically every box car
in the country—that the time is
cbming when all tne freight now

associ¬

Cleveland

replace

with

them

Freight Transportation
think Piggyback, in due time, will

be¬

ated

career

Confident Look Ahead at

an¬

Department.

properties

railway

partially

sleet

in loss

increased

the

$750,000 after

sidered

severe

30 years resulted

company realized a

1955.
worst

has

$50 million of
capital has come into the com¬
pany without any increase in fixed
charges — first from the North

Union

Exchange,

come

Over

that there

St. Louis is in the midst of

Stock

that

Everett

King

Co.,

for dissolution of North American

Company.

talk

the company's total revenues.

1952 with the plan

began in

32-36%

other utilities.

St.

proximating
220
a
share after
taxes,
which would raise total
earnings to an estimated $2.02.
The company is now near the
end
of the period of transition

—

Thursday, March 7, 1957

page

Inc., Union Com¬
Building, members of the

nounced

Union

Ohio

from

that putting

aboard
much

space

ship
that

savings in port would be
at all.
I'll
admit, the

Not

space.

take

lot of extra

But because they cut down

time in
er
on

port so drastically, a trail¬
ship spends most of her time
the

move.

The

result

is,

that

roll-on, roll-off method,
a
ship will carry over 50% more
cargo in a year's t:me.
Now, add to this what it means
to the shipper by way of faster
by

the

Volume

185

service.
is

Number

One

5618

intercoastal

carrier

taking loaded trailers from

York to
And

The Commercial and-Financial Chronicle

New

Houston, Tex., in six days.

then

add

means

reduced

loss

These

this

reduced
and
not

are

Ralph E.

what

pilferage,

and

outstanding example is De¬
troit's
automobile
industry —
which
is generally
regarded as
automatized

most

Detroit

and

—

ers

say:

would

prised if, within
not

see

chant

decade,

roll-on,

marine

conducting

sur¬

roll-off

200

mer¬

250

ships

prosperous domestic

trade."

much

very

catch

the full
meaning of
statement, there were
only 161 general cargo ships of all
types
in
ocean-going
domestic

Mr. Casey's

"trade in

1955.

other words, he

expects the whole fleet to be

con¬

verted to

trailersnips and to
by 25 to 55% in 10 yea^s.

Charles

Tait,

Director

grow

the

Port of San

Francisco, has this to
about roll-on, roll-off trailer

say

6hips:

expensive,

might

well face it.

It's

burdensome,

space-making

the

auto

business

wildest dreams of

to be

.5*

typical, auto plant parts
come
from
Massachusetts, Ohio,
Connecticut, ; Pennsylvania,
and'
Michigan.
All/.of
this
traffic
a

New

overnight^ And when tne
ha vV rolled off the

all is

plans
the

have

Altogether,
announced for

been

construction

especially

ships

trailer service.
about

cost

than

designed

$11Y2

million

apiece.
With money like that going on the
table, you can be sure that a lot

people

100%

are

future

sold

Amer¬
been

teen

American

kid

age

transportation

Port of San

said,

Francisco,

there's

—

haven't

Mr. Tait
why it
of trans¬

much

seen

give

handling costs bv the rollroll-off method, from 50% or

on,

down

look

new

3%, and

at the

On the ocean,

cut

ll get

package trade.

trailership traffic

ahead

millipn

This

live

people

millipn, in less than
200 milliop.
population will
of everything—partic¬

growing

of transportation.

ularly more
We

trailer
the

confident

are

future,

expected

the gross national
the

and
.

industry

Office

and

the

last^but surely not

since the 50,000 mile net¬
built over a 500-year period

The

highway

demonstration of fishyback's con¬

quire

tinuing

They will

growth

the

was

comple¬

will re¬

program

many!truck trailers.

many,

be needed to build the

and when

they

tion last week of the world's first

highways

trailership

round

trip

built truck trailers will be needed

Atlantic.

From

the

Base,

Army
carried
oveb

European

eral countries.

highways to

sev¬

the

ship

TMT

carried 11 loaded European trucktrailers.

This

service,

which

under the -aus¬
Military Sea Trans¬

being

conducted

grow

of the
Unit, is
expected
to
considerably. We have been

told

that

pices

portation

the

Europeans

enthusiastic about the
possibilities for trailership traffic.

And

some

went

of the

far

discuss

inaugu¬

be¬

various European ports.

I think that with

"It

you

the coming of

ing

leatures
Yet

one

it's

important

go¬

dominant

Great Lakes, too.

the

they are—and

which

truck-trailer

the

plays

leading role.
There
For

are

all

trailers

All

kinds
are

over

the

country

industries

being

woven,

truck
as

over

see—the truck

can

vital

and best sense — because
they are automatic processes depurest

such

for

the

coordination

tion

years,

leaders

many

transporta¬

have, been

advocat¬

ing."
A whole new
is

transportation

era

Co.,

Forbes, Stark¬

economic trend at will. That

and

have

the

true

been

rolling

economy

the

period

Hunt

McLaugh¬

lin,

when the
extremely liquid.

adjustment

was

George

weather & Co.

may

& Co. and served as
Security Traders As¬
in 1954.

Cryan

President of

sociation of New York, Inc.

Unfortunately, at least the second
bet is no longer a "sure thing."
If

the

administration

Levian Director

the

and

Amott,

monetary authorities miss the boat
not

run

its

course

before

support

Baker

Incorpo¬

ac¬

become

has

a
stockholder
corporation.

which the Administration may
find

These

itself.
are

certainties

the

two

major

surrounding

selves,

seem

gradual

Leo B. Dorfman

un¬

the

look at economic forces,

Co.,

rated, 150 Broadway, New York
City, members of the New York
Stock Exchange, announces that
Allan H. Levian, Assistant Secre¬

applying "timely" actions
before a decline really gets under¬
way, such a decline may have to

clear

actually had
little to do with "luck." It
was the logical
result of the un¬
paralleled liquidity of our econ¬
omy following the end of World
War II. That applied to banks as
well as to corporate liquidity and

Leo

out¬

been

to be working toward
decline

Dorf man

passed

the

Manager

whose

businessman

between

solving

midtown

level

the

of business activity.

■

New York office of Hornblower

Weeks.

ex¬

plenty

problem
available

funds and

money

CORPORATION

company's own
be had for the

the

Swiss Bank

business

any

can

asking from almost any bank and
an extremely low interest rate

SWITZERLAND

Head Office: BASLE,

—

and

situation

which

company's own working capital is
low and bank credit is tight.
A

business execu¬
gone
through
period. Consequently, they
may be
in for some rather un¬
pleasant surprises. Let us hope

lot of

have

such

•

LaChaux-de-Fonds

Neuchatel

St. Gall

•

Geneva

•

£chaffhouse

Lausanne
•

Zurich

younger

our

tives

Bienne

never

RESERVES

CAPITAL

95.000,000

ICO.COO,000 S.Fes.

S. Fc3.

that the lessons they may have to

won't

the economy as a

costly

companies

for
and

and

corporate

abilities

that

Vulner¬

play.

into

coming

vaguely

been

have

disturbing for some time, suddenly
begin

much

loom

bigger.

The

business climate is changing.

31,1956

Swiss Francs

ASSETS

liquidity sharply reduced, a whole
new
set
of
economic forces
is
now

Statement of Condition, December

whole.

bank

both

With

too

prove

their

Cash

375,639,622

Earks and Eankers

533,385,080

Eills Receivable

613,883,801

25,157,192

Short Advances.
Advances to

Customers, etc......... 1,294,147,499

Government and other Securities....
Cther Assets.....

..........

Two Vulnerable Factors

this

New

flexibility
in

horizons

and

in trans¬

speed.

service.

New

And

horizons in the bropd and

time,

new

general

prosperity of the American trans¬
portation system as a whole.

...,

531,358,231
7,158,814

11,250,000

Property...

Total S. Fes.

Merrill Lynch Adds
(Special to The Financial Chronicle)

Ohio —
with

Lynch,

Pierce,

and

48 East

Gay Street:

now

Fenner

mentioned

before,

pressure

3,"391,980,239

funds.

investment

Swiss Francs

LIABILITIES

profits and the stubborn gap be¬
tween savings and the demand for

Capital

.180,000,000
86,000,000

Fsserves.

project the likely impact of these
on
the economy, were
it
not
for
two
over-riding uncer¬

2,190,251,726
Time Deposits.....................
561,948,597
Fixed Deposits ("Obligations")......
233,753,500
Eills Payable
21,697,721
Acceptances
20,761,784

tainties. These are

Cther Liabilities.

would

Sight Deposits

relatively

easy

forces

East

crisis

and

its

(1) the Middle
possible eco¬

68,152,117

Iidit

29,414,794

nomic

repercussions and (2) the
uncertainty surrounding the fate
of the tight money policy in this

Total S. Fes.

V. Lee
Merrill

& Beane,

can

you

come

with

3,391,280,239

the

NEW

right answers to these two ques¬
tions,
a

are

you

successful

answer

and

not good
The

in. But it has to be
parlay;
one
right
wrong

one

one,

are

AGENCY

YORK

Main Office, 15 Nassau Street, New

York 5, N. Y.

49th Street Office, 10 W. 49th St., New

York 20, N. Y.

enough.

inveterate

out. They

imminent

reversal

restrictive

credit

our

own

policy.

This is a simple formula—but
probably the wrong one.
It may

OFFICES

LONDON

bulls have it all

visualize more
troubled abroad. But to them, this
spells foreign aid inflation in this
country.
And
they also see an
figured

COLUMBUS,

increasing

the

are

99, Gresham Street, E.C. 2, and 11c, Regent Street,
AFFILIATE

Swiss

away

He had

at the age of 49.

Feb. 26

by them¬

consumer.

Every

Surely, it will be an era of new
horizons.

Harris

country.

opening before our eyes.

Norwood

recent

says

sort of cqmmon denom¬
the transportation sys¬

signed to make the job easier and
to save money for both industry
consumers.

place

instrument affording

the

Chase

tary,

very

con¬

in¬

tegral parts, into industrial proc¬
esses
that are automation in its

means

Forbes

the

and director of the

postwar "luck,"

our

that

belief

been

becoming";

horizons

instance, there's factory au¬

tomation.
.in

others.

is most

freig.it transportation activities as,

port
many

highway

editorial in the magazine "Traffic

they promise to be—

Piggyback and Fishyback are but
two methods of transportation in

are

come

the

Street.

has

The two chief vulnerabilities at

America.

inator

St. Lawrence Seaway

holds

trailer

with Harris,

Lank Frfcmises and cther

servative.
So—as

Wall

un¬

they are
this, however,

Actually,

administration, by merely pushing
right button, can reverse the

soon

have

clearly the horns of the dilemma

that
to regard as

becoming

now

also

Hunt

well known in

I think his estimate

tem—an

the

which

ton-miles

program."

World '

Great Lakes

Taft,

the result of the Federal

with

service

trailerships

European-built
tween

Europeans even

similar

ration

what

Transportation,

additional

themselves,

Trailers

Professor of
XJniversity
of
Maryland,
after■„*
considerable
study, estimates that "approxi¬
mately 76,000 additional trailers
will be required to transport the
Charles

Dr.

signs of increasing

Mr.

tions become effective. This shows

blind faith in our con¬

any

learn

76,000

Additional

were

especially

this ex¬

the goods, over

carry

are

tensive network.

trucktrailers

On the return trip

Philadelphia,

"to

TMT

"Carib Queen"

loaded

Brooklyn

3-deck

Trailer Ferry ship

ihe

across

—

quickly

periences go back bevond the davs

program

thrilling

most

act

the

just prior to World War II, knows
that there is quite
a difference

highway building program which
is the most ambitious public works
work

dustrial stocks.

to war¬

shopping

least, the $100 billion Federal

the

in¬

and

the increased use
the U. S. Post

trucking

before

hatched. Right now, there

are

decentralization

subufban
and

wise policy

chickens

one's

tinued luck.

the

product

are

have

only betting

domestic, business picture

steady swing to suburban¬

centers

because of
growth

continued

truck

the

too,

been

never

count

they

In five years

it will be 178
10 years

It has
to

rant

by the Emperors of Rome.

growing fast.
Probably

170

Today

in the United States.

phrase for
the coming

is little in the international

look

sound, plump facts.

ization

the

give

But,

channel. 1 Then,

27-foot

time/

long

Stalk.

package trade on^e^GLeat Lakes
for

based

coined

already

it and is talking about

is that truck-

confident

reason

bean

Jack's

has

One of them

"foreign aid inflation."

economy.

phase of our transporta¬
will continue to grow

This

the

isn't a coming method
portation in Cleveland, too.
We

the next "savior."

tion system

need

Now, if Fishyback is the coming
method

to happen to
boom. Somewhat

sure

insurance,

the

they are talking about
defense and foreign aid spending

transportation

growing

the

Fishyback.

take its

has

nearly 20l years

domestic trend

the

will

but

"something" is
perpetuate the

de¬

partment
bank

As far

not

vaguely

For

trading

concerned, these bulls are betting
on the belief that the administra¬

capital'goods boom

place?

Co., Inc., 25 Broad

City, in
charge of their

effect.

showing signs of leveling off,
big questionmark is what is

Amer¬

over

ica.

for

These ships would

Now that the

New

York

opening of the Suez Canal, this is
likely to have a deflationary

employment.

now,

trailers to dealers all

Every indication

the dollar sign.

"Push"?

Another

Leonard

Street,

there
There

If the international crisis is pro¬

tion

The inveterate bulls believe that

assemoly line-seven out ,of 10 of
them are hauled away by truck

trailer

car¬

wrong

prove

counts.

finally had

boom

braked, capital goods spend¬

Will

automobiles

Ships

opinion

money.

the

strongest

that

easy

ing got its second wind and
ried the ball through 1956.

by truck; and trailer—much

moves

tion."
21

in motion—
going to a

set

was

growing with the whole growth of

the

boom

when

And

five years

the coming method of transporta¬

But,

longed through delays in the re¬

postwar consumer durable

important assist
deliberate policy of

the

beyond

even

second

they used, to maintain. It has
speeded up the materials handling

Ralph b. Leonard Co.

Georefe V. Hunt has ininorl Ralnl
George V. Hunt has joined Ralph

both

actually

goods

invento¬

ries

ican

"We

the

operate

ago.

/ .'

•

Issues of 19S7

its
peak late in 1953 and a minor
setback
occurred
in
1954,
the

cities—is to permit the auto mak¬

tute,

Geo. V. Hunt Joins

When the defense boom passed

other

many

American Merchant Marine Insti¬
to

page

The Economic Key

industry in

What the truck trailer has done

Casey, President of the

has this

from

the country.

opinions.

Continued

the

damage.

just

Detroit

(1127)

S.W. 1

CANADA

Corporation for Canadian Investments

360 St. James Street West,

Ltd.

Montreal 1, Canada

The Commercial and Financial Chronicle

<1128)

little

they

create

incentive—each

few

year

impedi¬

change.
is

Today's

not

merely

technology

new

flood

new

Thursday, March 7, 1957

Industry is interested in the per¬
sonal welfare and security of its

ments to normal trade—each year

Salesma

Securities
By JOHN

Securities

Commission

pilalion

has

cash sale in

offerings for
It reported that

1956.

1.956,

corporations

approximately

raised

billion

$9.6

working
bonds

capital.

and

Debt

notes

$8,020,000,000,

—

consider
power

or-his

{olIow_each

successors

year

can

they destroy a
*■ -

allowing the SEC more
the investment bank¬

over

ing business in this country.
75%
of 1956 financing
DEBT

ISSUES*
25%

about

1956 financing EQUITY

ISSUES.

•

Vital Factois Affecting

the

For

Year

after

year

the

said:

same

time when the present

Chairman

the

Securities

Ex-

example,

"Marconi

about 1900. In doing

has

supply of economically available
petroleum. Production costs of oil

he utilized

not more than 20 to 25 years'

wireless

someone

invented

the so-called 'useless' calculations
of James Clerk Maxwell in

elec-

constanly increasing. The extraction of petroleum from shales

are

would be quite costly.

Such pro-

making

tricity and magnetism in the 1860's

speeches, writing articles and ad-

arid
the 'useless' researches of
Heinrieh Hertz in the 1880's. Long

cedures would seriously affect the
"nlt price of fuel and tend to check
future industrial growth. If the

before that, in

current drain on our domestic oil

change

Commission

monishing the Congress for
to

power

shackle

the

investment

banking business in this country,
we

the

see

suffering
sell

spectacle of

small

their

business

inability

equity issues to the public in
that

which

order

would

for

prepare

sion
in

and

from

amounts

old

same

medium-sized

them

the future expan-

they

enable

must

and

grow

By the SEC's

undertake

own

we see

how

industry and the investment
banking business has been slowly
starved

into

state

lassitude.

Large
big corporations
stitutions

were

anemic

issues
sold

of
in-

and

1956*, just

bond

ever since

years

its

large investors in
they were in former
the SEC

the

around

rope

try.

has had

neck

investment business in

this

the

coun-

But small business, medium-

size d

business,

and

few

large

corporations raised only one-third
as

much

equity capital in 1956 as
invested in DEBT. The large

was

corporations
bonds

don t

can

the

have

sell

Joseph Henry, devised
gadget

Lis

his

lunch

urged

laboratory

that

ready.

was

to patent and develop his

device.

His

was,

don't

His statue stands

expense

fellow

the

capital

about

worry

and

man

the

who

the.

risk

survive—he's

starving
gradually falling by the way-

and

side,

just

ever

since

has

the

SEC

been
took

doing

over

1933.

;

Give
a
j

Th.r
I

IV,„I

bureaucrat

uWyears

bound hand

inch

he'll have

and foot.

buieaucracy.

In every State in the

said

improves.

that

his

Some¬

anybody

can

„

The future

er am y °* Cheap rower
Another factor that should concern

economy; men 15%; horses, mules

and oxen 79%.

In 1954, 92% of
?ur energy was supplied mechanically, the labor of men furnished
4% and the labor of animals the
percentage.
power consumption in
United
States
is
doubling

10 to 12 years.

every

increase

countries is

age-wise.
our

the
we

The rate of

backward

even

position

beeTinhaVG nati?.n>

the

the future,

increased

pay

problem

man-

industry

attention

maintaining the
proper attitude on the part of its
employees toward the enterprises
with

which

they

the

attaining this goal, the creation
an
organizational atmosphere
which

that

the

greater percentare

maintain

great industrial

^ry

depencis

the

employee

vital

enterprise

and

will

which

feel

essential

success

human

upon

relations;

ment's ability to
than

drive

upon

lead

indus-

manage-

field

human

aspect
a

manage-

men

rather

new

Indeed, the
doing business

dimension to mod-

management.

In the long and

painful history of the world,
has

tried

throughout the organization. Re¬
sponsibility for creating the right
ly

executives
must

from

basic

the

business.

top

They

their entire organiza¬
bottom sold on

keep

tion

rests large¬

course,

the shoulders of the

upon

top to

policies, which, of course,
intrinsically sound.
To

must

they must be good salesmen

and

that, in turn, demands that
they understand basic psychology

—the forces that motivate modern
industrial

Of all these forces,

man.

many

devices

utilize

are

and

the

what

the

man

When

are
we

identify

people

interests

other way will

understand¬
business is all
an

about and how their

fortunes

word—if

the

they be able to get
of

our

medium

our

with

the business.

ing

spoken

help

themselves

means

every

command—every
written

related
talk and

own

personal

it.

write to

our

keep

employees, we should also strive
at
his
task.
The to
bring about that broad and
Pharaohs employed battalions of
sympathetic understanding which
laborers
to
drag
toe
massive is so essential to the continued
stones of the Pyramids, spurring progress of our American free en¬
each

worker

on the workers like beasts o£ burden with bloody scourges and cut-

terprise

ting the dead from the traces and
replacing them with the living,

employees' point of view;

The Russians today

use

the bayonet

and brain-washing and the big lie.

must

deal

economy.

approach
in

do this

things

specifics that

from
we

are

the
must

mean¬

ingful and understandable to them
and

must

forthright

and

W-

We in the United States strive scrupulously honest.
In
our
by every means to induce each
communications, there
w
a
worker to put forth his best effort are several basic themes that we
voluntarily. We try to plan our should elaborate and expand while
production so that his self-interest playing them over and over again
t on
thk
Ifntf, hlP°
ture," Mr. Palmer Putnam epti- and that of society are directed until toey become as well-known
betn in need of more lawwwp mates that peak Produ<-*tion of oil, to a common goal.
We not only to employees as a familiar sym¬
have laws bv the thousands thai gas and good cokinS bituminous teach, we practice the importance phony is to a music lover.
It is
cover fraud of every
descrfpUon coal
thue Unitcd States may be and sanctity of the individual. We quite easy to state these themes.
But this is not enoueh for the
reached bef°re I960- Peak pro- have no class system. We care not Productivity is the key to plenty
They want to sU on forof ?£duetion of all United States coal who a man's father was. We care —only by increasing total output
heap
"Thev" know what is hilt may be attalned before 1990. He only who the man is, what he is it possible to increase the work¬
to protect the public
So
win
concludes> therefore, that if the stands for, and what products flow ing man's share. Capital is essen¬
have more impedimenf<^ to frll
United States is to avoid increased from his hand and mind. That tial to provide the tools and equip¬
sound
unit costs of ener§y' new low cost competitive freedom of the in- ment which multiply human effort
is based nnoi^ trL !!
t
sources should be ready to supple- dividual to advance to any height and make possible greater output
custom honest
smd
ment the load now carried b^ fos- his energy and ability can -take per man-hour worked. Profit rep¬
petitive free enterprise sv<tem
Sl1 fuels by 1975 at the latest- That him is in my opinion the greatest resents the "wages," if you will,
■ru
lJr
enterprise system.
means we must rely jn the future single factor ln the success of 0ur for the work that is done by
me EEC
*

■

dM^fna

restrict

may secure more power
and
circumscribe the

wilfShirsf1"h lnUfln+SS" *£ S° th^y
J«
-f fai mu-ch more ln
killing equity
win

financing

increasing degree

nuclear

fuels.

economic system.

This philosoohv of human rela-

At the present time the esti~ tions,
mated oil

reserves of the Western
not
including off-

this. Hemisphere,

it seems to me, takes on
increasing importance in the present

age* cf

greatteSinologicai

industry is the de¬
we gain the under¬

which

standing and acceptance of tnese
truths by
our
em¬
ployees through our actions as
well

words

our

day-to-day

operation.

Training: Future Managers
The

growing complexity of mod¬
industry will also necessitate

ern

much

conscious

training

manager

the

case

tion in

the

matter

function

fit

past.

mond,

tions,

does

not

the

broad
man¬

John

Hays Ham¬
engineer said,

great

the

be,

general

the

ac¬

important

for

man

"The broader you
the

Specializa¬

how

may

responsibilities
agement.

been

has

particular field of

one

effort

than

lay the founda¬
you
can
build

higher

structure

achievement."

Hence

must

them.

imparts
grn

the

increased attention is be¬
part, is today the most important,
paid today, and still more
in my opinion, and will remain so ing
must be given in the future to
in the years ahead.
This feeling
can
exist only when the proper the specific training of men and
women
for
the
higher positions
atmosphere
has
been
created

vigorous communication.

American

also

ment's

however,

One

fact.

fundamental

per

involved

factors

American

tivity,

connected.

are

Right Atmosphere
all

and sim¬

are,

that will affect the future

gree to

that

They

but it takes real lead¬

man,

mUSt at a11 hazards
ever
heard
of
wu
contf1"ue lndeflnltely self suffiExchangernlmfcS
a"1 C
ln resPect to our mechanical
Zea6raj ene»'gy supplythe enforcement of nnhlir nrnfJ
In his book, "Energy in the Fu-

statements

capital

without

would, not
of

which

savings

invested.

Industry
necessity operates in the public-

interest

because of the customer's

right of choice in

free market.

The

management.

Telephone

the

and

pany

American

Telegraph Com¬
General
Electric

and

Company

and

many

porations

are

already

considerable

time

other cor¬
devoting

and

eral Electric

ple,

have

equipped
their

lion

set

dollars.

courses

training

expen¬

over

their

Here

junior executives
plete

the

told, of

exam¬

completely

for

executives

diture, I

The Gen¬

Company, for

school

money

efforts in this direction.

managers,

the

you

There is

limit to the insatiable demands

business

Human Relations

Electric

and

independent

status

the

become

plified terms.
factors

stated these

course,

foreshortened

princess"

hey Want More Power

and

°f American industry.

same

Now

far-sighted

tends

have,

themes in

satis¬

upon

customers.

velopment of atomic power plants as I have
indicated, none is more
and to further research into the vital than the satisfaction of the
possibility of producing commerfeeling that one is somebody of
cial power by atomic fusion as
consequence and importance.
distinguished from atomic fission,
However,
mere
management
I have heard it said that the oceans
understanding of human nature
contain enough deuterium—heavy will not of itself make
employees
The wise business manager will water — to supply power to the
feel
essential
and
needed.
The
always
encourage
research ' of earth
a billion years _if a way
principles
of
basic
psychology
every description as one of the can be found to utilize it in atomic must be
applied through constant
vital factors that affects the future fusl°n.
and

laborious

needs

The

ture
generations
of
scientists,
Earaday, the father of electricity,
asked by the then Prime Minister
of Great Britain what practical
use his discovery might have, rePlied: 'Who knows, perhaps some
day you may tax n- "

American industry for the
lon§ haul L the assurance of an
details
of
SEC
regulations
and adequate supply of cheap power,
red
tape—they have the capital 4n 1850 machines produced 6% of
and can afford it.
But the little the energy used in the American
added

should continue, that will aggravate the situation just that much
mor<~. Hence, the rapid developof atomic power is of vital
importance to the future ot Amerlcan industry,

today at the entrance cf the ager, therefore, will concern himPalmer Physical Laboratory in self to see that every possible
Princcton as an inspiration to fu- encouragement is given to the de-

they

—

of the

power

increases

reserves, due to the present state
atmosphere, of
wireless °f affairs in the Middle East,

his wife could signal him from
his home on Prospect Street when

high-grade

institutions

eccentric

professor at Princeton University,

want to bother.'

prosper.

report

1842,

important

the

terprise is dependent
fied

to refire a man with en¬
thusiasm for his job and his com¬

"nSSi K ^million barrels^ Ty-T bUliol

Denied

employees
To do so

and their dependents.
lasting job security for
connected with an en¬

everyone

ership

-i

story.

and

must

sesses

even

himself

has

pany.

yield in practical application.

skilled

and

unions

enlight¬
which
these

led, not driven.

will become

fire

emphasis must be placed in the shore reserves, are about 200 bilnot
verv robust total
ofeouitv"future on fundamental—pure—ire- lion barrels. Of this amount the
finaiicimr at a time when the search, if applied research is to United States has a reserve of 75
needs
of
American
business
for continue to be productive to the billion barrels.
Our present con-

Business Has Been

one

FINANCING, HOWEVER,

Adequate Public Financing

educated

countedTor °$570000 OOO^hfeTs

can

the

labor

from page 11

TOTALED. $2,185,000,000,
and out of this total the American

Ever Since Advent of SEC Ameri-

learn

methods

must

ened

financial

three-

educated

in the future, as

for

$9 Win™

and

people in
industry, and hence, above all else,

can

ONLY

afanywCre'rom $6?o

trained

worker

Continued

fourths of the 1956 total. COMMON
STOCK

and

issues—

accounted

stronger

fi¬

expansion and for additional

nance

which

become

Remember the figures when you

Exchange country. Since 1933 Mr. Armstrong
its com- has a long line of petty dictators

issued

security

during

and

Finally,

gadgets and
machines;
it
is
a
the whole new concept, a new phi¬
investment business becomes more losophy of production methods. We
must realize that it requires more
supine and docile.

DUTTON

No Record to Be Proud of
The

employees

they

given

are

mil¬

present
com¬

such subjects as

economics, sociology and political
philosophy so that they can be
equipped with the broad general
knowledge that the successful ad¬
ministration

requires.
In

business

modern

•

short, management develop¬

ment, which does not just consist
of

picking

out

few

"crown

today's
which works

replace

but

top
sys¬

tematically and consciously at the
improvement of performance and
ability

entire
manager
an increasingly

the

will become

group

vital

necessity

dustrial conditions.

didate

material

positions

Potential

for

in¬

future

under

can¬

management

is supplied

col¬

our

leges and universities, and on this
ground alone increased financial
support

higher

education

business corporations is fully jus¬

tified.
Government and Inflation
Let

turn

me now

the

briefly to

some

important factors of

general fiscal and governmental

character that

will

affect

the

fu¬

ture of American

industry. Among
these factors is certainly inflation.
The dollar is worth only half of
what

was

1939.

Thus, mil¬

lions of life insurance policy hold¬

bond owners, bank depositors,
pensioners and others dependent

ers,

relatively

already
50%

ings.
the

fixed

income

legally

been

have

robbed

accumulated

their

sav¬

Depreciation allowances on
fixed
assets
of
corporations

acquired
in
former
years
are
grossly inadequate to replace such
facilities

they wear out.

If this

creeping inflationary process
tinues at
or

ficient

rate

year,

virtually

savings

working

years.

low

would
to

con¬

even

suf¬

the
person's

destroy

average

Furthermore, his¬

tory shows that creeping inflation

usually

ends

tion because

galloping

infla¬

prices, never rise uni¬
formly, and efforts to correct such
maladjustments
result * in more
and more inflation leading to ulti~

mate

Number 5618

185

Volume

collapse of the entire

submitted

econ¬

the

records
to

state

maintenance

society

these

Labor

opposing

sense

nature

goals,

thetical.

with

Yet

wisdom

labor,

and

the

would

part

labor,

by bidding for labor when
is

the
responsibilities
of
a sense

the

deciding

labor

short

supply; not to grant
increases that would result

won

miller

creation

vote

had

You could not con-

miller that his

insignificant;

was

could

nor

convince the people of Texas

you

that it was.

Your vote

mine has

ment

by wage advances that ex¬
productivity.

ceed increases in

Warns of State
*

Socialism

Unfortunately, the self-restraint
wisdom

and

developing
not

are

labor

required

economy

likely

leader,

keep

balance

The
maintain

develop.

who,

forward at

presses

his demands for

benefits, with little
their

ultimate

national

their

been

now

hands

regard

the

Such

economy.

has

power

effect

quickly.
The
adoption
Commission's

placed

bar-

vise of circumstance feels himself

for years

grants

wage

increases

ahead that clearly out-

strip possible advances in produc-

raises his prices and the
inflation
boil
steadily
higher and higher. Pericles said,
tivity,

of,

pots

however, that "The secret of liberty is courage." After all, there
Is something worse than strikes
and

the

consequent

loss

pro¬

duction and

profits; there is some¬
worse than the
acceptance

thing
of

sound economic

than
use

worse

slack

rather

wage

high wage exacted by the

something
periods of
employment; and that is the
than temporary

destruction

form

our

free

dislike

the

cast

myself in

the

Cassandra, but I venture

prediction that if the present

loss

the

years,

the

form of free
our
lapse into

present

our

government

and

socialism.

state

dire eventuality calls for vigorous and courageous
leadership on the part of industrial management — particu¬
To

prevent that

management
of
our
larger manufacturing enterprises.
For what they do necessarily sets
larly ; the

the

pattern

the

for

from

never

against
the

for our smaller

pro-

Little help can be

ducers.

likes

what

current

looked
politician,

average

take

he considers to be
popular view even

though he may know in
that the

popular view is based on

principles that

are

stream

will

have

unsound, and

disastrous

con¬

in the long run. Never¬
remedial
legislation to

sequences

theless,

making union activities subject to
the
anti-trust laws, is urgently
needed.♦ The

gal

urgency

restraints

of such le¬

becomes

evident wherr one reads

doubly
a

of $25,000,000

Co..

98.06% and accrued interest
yield 4.65% to maturity,

The

notes may not

new

re-

deemed before March 1, 1967. On
and

free-

that

after

may,

the

date

option,

its

company

redeem

the

And

must be

our

form of free

government and

private competitive business is to
survive.

Paraphrasing

of the Hoover
recommendations

article that apSurvey"

peared in "The Guaranty
last

year,

may

said

that

whenever it is proposed to use

Co.'s

the

working

sidiaries

and

reduction

for

loans.

business

Commercial

Co.

The

Credit

its

subsidiaries

consists

and

primarily

specialized

In addition the company has sev-

our

liberty

taxes

added

Armaged-

own

favored

land.

The

oral manufacturing subsidiaries,
The finance companies ' collectively are one of the three largest
enterprises in the United States
engaged in the business of acquiring
instalment - obligations,
deferred payment obligations and
accounts receivable. Total gross
receivables purchased by the finance companies in 1956 amounted
to $3,387,088,000 compared with

fires of free government in the
world
are
everywhere burning

welfare

Credit

Qut

national

over-all

thunder

will

^OI?merciai <-recut uo.s womng
capital anct^may bemused for the
purchase of receivables, for ad-

con-

forms of financing and insurance,

the

proceeds of the sale of

notes

Commercial

of
class
hatred,
the
sinister
whispers of alien doctrines here

are

The net
the

don from continents east and west,
and even the ominous mutterings

the

With

the torch of personai
being dimmed — not
merely by the few who would
consciously destroy what America
stands for, but also by the many
who having eyes, see not, and who
having ears, hear not the plainly
blazoned lessons of bygone ages
of slavery and despotism.
ug

of government to advance

•

...

growth of the economy. Assuming a continuation of the normal
3% a year growth, the NAM es¬
timates

that

above

35%

lion

five

Federal

and

annual tax revenues
other than the rates

will grow by $12 bil¬
years, while the cut
revenues
resulting

from the 35% top income

tions

could
of

duct.on

adoption

plans

these

The

debt.

would

provide billions °f
capital.
Both proposals
-

doll^s ot "?;
should
,

the vigorous support
American industry.

receive

Futility

of Personal

Effort

the

proof

proof is

laid

upon

socialism is

Socialism

not

ihrindividual

oublic affairs that

to exercise.

citizen

means

tives

sought.

are

majority

de«ire

authoritarian

people

have

socialistic

o£

no
an

state.

als0 desire the social

programs

which modern

ments have

wel;are

brief

the

multitude,

sense

The "ITALIA" Societa per

Azioni di Naviga-

zione, is offering for sale, by
the

tender,

m/v

"LEME,"

international

gross

tonnage

8,038.97, net tonnage 4,902.87, in accordance
with

the

terms

conditions specified in

and

invitation to file

the

purchase tender dated

February 6th, 1957 the text of which is
able

applicants at the Company's

avail¬
Head

Office, Piazza De Ferrari 1, Genoa.

complete nolitical and eco-

willing

Offers should be filed with
the Company
of

ried out without moderation, push
men into very vicious results,

within 12 o'clock

April 30th, 1957.

of the

futility of personal effort."
is fundamentally the reason

Indiana,
there lived
a
grain miller.
He
started to his mill on election day
1840's in Dekalb County.

grind his grain. On the way he
met some friends who persuaded

"LEME"

govern¬

adopted, and in seek¬

ing one set of objectives, they are

the

Center.

Sale of Motor-Vessel

They want freedom. But many of

the]^

Mile High

The overwhelm-

be*ome £h/slaves

the light of Thy

by which other objec¬

Lord Bryce, the noted

greatest weakness of a free government like ours is "the fatalism

and

conscious end

reserved comment on the

ennnsibifitv

arm,

countenance."

the drift toward

but rather the secondary result

the

difficult to combat.

unintentionally setting themselves
most vital single factor that will on the road toward the other. The
affect the future of American inmovement to the welfare state
dustry to the very last, and that would end abruptly if a free peojs tjje degree of interest and re- pie could be broueht to realize
I have

Thine

Ends and Means
For this reason,

be applied to the re

the public

them,
difficult to
supply because no matter how
grave
the
obiections, they are
usually less evident than the ends
that are sought.

burden

As long as the majority of peoThat pie keep their eyes fixed only
why on the ends they seek and not
curb the present power of labor
only 60% of the qualified elec- on the corollary results that will
union leaders by prohibiting com¬
torate voted in the recent presiensue, freedom and true security
Yet, as Dr. will be jeopardized and eventually
pulsory unionism, industry-wide dential election.
bargaining,
featherbedding, and George S. Benson of Harding Col- lost. Here in the United. States
can
be found numerous illustra¬
all
secondary boycotts, and by lege
points out:
"Back in the
which

issue

new

Commercial. Credit

Today the express riders of the
ether bring to our ears in steady

nomic significance of what
Montaigne asserted almost 400
British commentator on the years ago: "It is common to see
his heart American Republic said that the Sped intentions, if they are carstand

political

our

man-

Axk% subordinated notes due 1977

One

of American industry is "to
tinue bright and promising.

the

tax rate
would be $10 billion. If the NAM
ranted wage and price increases
tax plan should be put into efis not soon altered,
the present feet, the savings affected by the
creeping
inflation
will
result, Hoover Commission recommenda-

complacency and apathy of the
American public toward unwar-

within

remain free.

powers

from sources

government.
role of

group

So should not we pledge our $3,677,242,000 in 1955.
eral budget and would make posthe economic interests of a cer¬
"loyalty to the cause of liberty"
Among members of the undersible a 25% immediate cut in Fedtain
group
or
class, those who and to the perpetuation of our writing group are:
Goldman,
eral personal income taxes. The
oppose such action are invariably
beloved nation "in this western Sachs & Co.;- Stone & Webster
National Association of Manufacstigmatized as being selfish, hard¬ land?"
The
awesome
facts that Securities
Corp.; Blyth & Co.,
turers has suggested to Congress hearted
and
indifferent to the we face today challenge us also
inc.; Eastman Dillon, Union Sea plan under which the corporawelfare of their fellow citizens,
"to show proof of our patriotism.curities & Co.; Harriman Ripley
tion rates as well as the individThe
objectives
of
the welfare It is high time that we too "joined & Co.
Inc.; Lazard, Freres & Co.;
ual income tax rates would be state
usually appear, and gener- bands" in outspoken defense of Merrill
Lynch, Pierce, Fenner &
gradually reduced over a fiveyear period to a top rate of 35%. aHy ar®» desirable from a strictly the faith of our fathers—a faith Beane; Salomon Bros. & Hutzier;
humanitarian viewpoint. For ex¬ which was
forged for them in the Smith, Barney & Co.; White, Weld
The Association proposes a uniample, no one can object to such crucible
of
persecution,,and & Co.; and Robert Garrett & Sons.
form annual cut of 16% in the
goals as full employment, better tyranny; that faith of theirs which
progressive personal tax rates so
J<
'
'
health, good housing, fair prices, rested on unqualified belief in the
that
lower
income' taxpayers and cheap power, provided such
With Denver Sees.
dignity of the human soul and
would share in the reduction. The ends can be clearly defined and
(Special to The Financial Chronicle)
sovereignty of a personal God.
NAM plan is not premised upon
considered apart from the means
For, as the inscription at Donegal
DENVER, Colo.—William M.
any
savings
from
the Hoover
by which it is sought to attain asserts: "They got not the land in
Girtin, Harlan P. Hemphill, James
Commission's
recommendations.
them. Those who object to meas- possession
by their own sword, M. Keeps, and Alice Pagliasotti
It is based exclusively upon the
increased tax revenues expected
U1le^ iSee^in?i_^°a tW c^? are^d^^neither did their own arm save have been added to the staff of
sirable in
themselves, have the
rjght hand? an(j
to
flow automatically from the
Denver Securities Company, 1420

there is

force;

cutting

sale

life.

c
work cut out for him if the future

the moment and think in terms of

for governmental economy would
billion out of the Fed-

gaining in many cases has become
bargaining in name only. So the
business manager, caught in the
powerless,

take $7%

great

collective

that

and

economic

underwriting

aSed jointly by The First Boston
Corp. and Kidder, Peabody & Co.,
on March 1 offered for public

ceeds day. Here the intelligent,
patriotic
manufacturer
has
his

willing to raise our sights above
what may benefit us directly at

necessity of reducing government

higher wages and increased fringe
to

burg, and Washington, if

take care of our immense future
requirements.
Hence, the vital
expenditures

assume

nation's

destruction

in Lancaster, Harris-

government

rapid enough rate to

what goes

interest in

himself in office, must constantly
6eek more and more for his con¬

stituents,

sonal

thrift and
savings are essential. With taxes
today taking about 30% of the
nation's income, it is questionable
whether capital formation can go

41/2% Notes Offered
An

t
potential power to shape the dom, our economic freedom and notes at 101% the premiums sealfuture cOPrse of a nation, or even our civil and religious freedom ing down to par after Feb ?8
of civilization itself."
will follow as surely as night sue- 1970
•
' V

Hence personal

way."

Commercial Credit Co.

form of control inevitahly leads to
the necessity for another, and unless this process can be arrested
by. education of the public*as to,
its hidden dangers, the ultimate

necessity of raising prices;

tated

responsibility for the conduct of
the

construction; minimum wage
laws, which have made marginal
workers
unemployable;
welfare
programs that are leading govern-

After all, no business, no club,:
quired to finance the newf facilino church, no organization in fact,
ties — housing, schools, hospitals,
can prosper unless the individuals
or to take advantage of a tempo™ads and factories—required for
rary shortage to put prices up beour growing
population" and a who compose it are willing to deyond the point required to earn constantly rising standard of liv- vote time and attention to its affairs.
The same thing is true of
a
reasonable profit.
On the part ingAs the Austrian Finance
a constitutional representative de¬
of government, this would mean Minister
said recently: "Fundarefusing to make enough money mentally capital is formed when mocracy, or a republic as our
available to take care of business Part
that which is produced is forefathers called our nation. As
at the higher price levels necessinot consumed. There is no other businessmen, we must take a perthe

which

new

x,--x

wage

for agricultural
has led to the

prices

unwieldy surpluses;
rent
controls, which have discouraged proper maintenance and

that

vote

high

products,

That legislator cast

vinee that Indiana

great influence on American industry in the years ahead is the
rate of capital formation. „Enormous amounts of new capital, as
I have already stated, will;be re,

the

and

—

candidate

sent Edward Allen Hannegan to the U. S.
Senate. The question of statehood
for Texas
came
up
for a vote
while
Hannegan was acting as
President pro tern. The vote was,
tied.
Hannegan cast the deciding
ballot in favor of admitting Texas;,

Raising Capital
Another factor that will exert

■

•

employ-

vote

the

legislature

to the Union;

not to drive wages up

mean

takes

that

state

voted for him.

tified by increases in productivity,
On the part of management, this
would

economic

It has in

...

and
government."

be jus-

can

powers

this

not forcing wages up

mean

bjeyond the point that

when

sociation

man-

agement
and : government,
all
three objectives would be attainable.

member of

to the polls instead. The

show

the

one

ar¬

ment . , . The Union is the organization or government of this society formed by the right of as-

anti-

restraint

the part of

comes

human

are

right-to-work laws this

rogant assertion: "The worker be¬

employment.

being what it is,

him to go

Federation

full

States

United

Supreme Court by the American

*1 v:.v
The problem is not a dilemma;
it is really a "tri-lemma," for it
involves
not only • rising
wages
and. stable
prices, but also the
*

omy.

(1129)

The Commercial and Financial Chronicle

tions

tives

means

that

have

but

quite

ample,

which

different

have

for exguarantees

results:

governmental

"ITALIA" S.p.A.

di Navigazione—Piazza De

TELEPHONE: Nos.

invitation

follows:

Ferrari, 1 Genoa

27,041—28,391—28,771

been

objec¬
produced

at attaining certain

aimed

Applications for copies for the
should he addressed as

CABLE: ITALMAF-Genoa

(1130)

The Commercial and Financial Chronicle

Continued, from first page

intrinsically right and
them

fact

\As We See It
progressive individual

income

taxes

and

paid by

huge and tedious task faces
leadership in this country—that of convincing the rank
and file that a very serious
danger confronts us all by
reason of the enormous and
continuing expansion of gov¬
ernment in this
country, and that that hazard is not de¬
pendent upon unbalanced accounts in the national and
state capitals. Not
only must the people be convinced that

danger exists, but they must be kept constantly
reminded of its presence and in a mood to do
something
about it. It may be doubted in the first
place whether there
is any general realization of the extent to which
govern¬
in

ment

this

past two

country has broadened its role during the
three decades.

question
by popular opinion. It is this

makes

the

current

situation

going on. But whether hard or easy, tedious or
simple, the task of getting ourselves back on the right
track should not be
neglected for one minute.

from

page

How

our

many

■

«■

Vfl.

amount.

This

phenomenon
is

come

the

old

family
rising in-

increased

increase—in this

This

family savprove dangerous,

can

#1*

■

decrease-in

ings.

disbursed

spending with
case

where

government continues to adopt
this practice.

Who

cannot

two

now

among us

services

three times what it

was

that of all goods and
country at the present time
aware

produced in this
nearly a fifth is taken by government? Who among us
understands that this compares with
substantially less

than one-tenth in 1929. Yet here
1929 only a little more than

of the facts. In

are some

the

rates.

because

present

on
an
adequate flow of income
after tax for expansion.
In addition it diverts a great deal of the

attention of

great many imaginpeople
from
productive

ative

the

depression (by reducing private
purchases) succeeded in getting the figure up to about
15% in 1934. but not even Mr. Hopkins and his associates
were

ing"
war

adept at "spending and spending and spend¬
able to hold the figure at that level until the

were
came

after the

war

structure

was

level not very far from
prewar. In fact it did decline in the
early postwar years
.."to some such level as that—a little over
over

some

12% in 1947—

steeply

rising individual income tax
It

has

then

tailed

and

built

which

incomes

subject

those

than

tivity. the figure
dent

the

was

about 19%. A similar

statistics

having to do with

course

the

is evi¬

source

individual income. In 1929
individuals looked to
govern¬
ment for less than
8% of their income. There was a
rise

during the

war,

and for that matter in the
prewar
over 14% in 1955.

Put all this in a nutshell and
we have the fact that
under present
conditions government — for which read
the politicians—not

private individuals

decides what

produced

received

country. Only
better

than

the

done

with

the

energies should be directed
that

all

some

private business
$19 of each $100

general

public in this
the false theory that the
politicians know
people themselves to what ends their

keeping with the
noted

best

this

can

such

situation

interest of the
people.
true

even

all

balance.

It will be

budgets

were

In
that

light of such

presents

facts

Spectacle
as

these it

—

application

would

and

univer-

these

„

rates

have results that

Congress
really desire—results that

dangerous

sad

spectacle

for

neglect. The

farmers
of the

It has
who

no
longer ask; they demand that the remainder
community put up funds to help pay their
way.

now

become the
accepted doctrine of many of those

control

votes

that

things for people who

government

all

manner

used to do them for
themselves.

It is with what William
Graham Sumner used to call
the mores of the
people that has to be contended with,
that is with notions that
have come to be

regarded

Second, while

9*;

this

goes

those

who

to feel

come

criminated

arbitrary to

the

say

for
cases

non-taxed,

the tax
more

base

be-

eroded, and

get the advan-

special

provisions

and

progres-

tax

than

lion

growth,

general
that

tax

con-

essen-

system that'will pay

for the

necessary expenditures of.
government.
This is the inevit-

able

consequence of the
tax
rates
Congress

community
in the

tions

not

really

apply to particular situa¬
they look at them
In my judgment the Only

way out of this

the

when

closely.

with

and

approve

abstract, but do
to

mean

schedule

apparently

situation is to get

much

tax

rates,

schedule

are

willing to apply
fair degree of
generality.

somewhat

exists

moderate

the

similar

schedule

tax rates, where there

problem
of

excise

good

logical reason for distinguishing between the items subject to
or

tax

and

those

not

subject to

situation, two

that

rising

levels

system

could

Second,

and

necessary

be
accomplished.
more'4 difficult, but

cannot

hold

ments

addition

unfair,

highly

Growth

basically

present
tax
system
within itself potentially

dangerous

future growth of

large

part

come

from

normally

threats

our

the

saved

the

economy.
A
tax
collected

incomes

productive

that

ing its structure without substantially reducing the revenue.
Suggestions

hold

down

Fed-

Expenditures always run into
question, "Where will you

the

cut?"

recognize
question.

beginning

its

that

this

CED

only
analysis of

careful

1958

budget, and I am not
position to offer specific
suggestions
for
reducing
the
in

now

1958

budget.

pressed

However, I am imby the tendency for ex-

penditures

rise

automatically

by amounts sufficient to absorb
all the additional revenue that
re¬
sults
not
only
from
economic

growth,
I

but

believe

revenues

also

from

inflation.

that, if the additional

had

not

been

debt

business

rather

securities.
creases

the

than

easily

govern¬

assume

matters?

greater

re--

The

present

incurring
equity

The system greatly in-

difficulty of obtaining

projects

l'our-year

urogram

saw? Jv ATrfs
construction

schools.

wanf to gjve tbe

not

impression that

and

Bui?

teachers

must

found

method

some

arrest

the

growth of Federal aid programs if
we

are

succeed
in
bringing
high Federal tax rates,

down the

not

the states and localj^es be capable of
helping toward
this end by their own school contruction

istence
rates

financing? The
of

the

very

ex-

Federal

high

tax

tends,

however, to perpetuFederal
spending, for

ate

high
high Federal taxes make it harder
for states and localities
to raise
funds to finance their own essential services,

Tbe Federal government is

now

planning a substantial increase in
public works construction in the
face of the heavy
demands for
materials and labor in this Indust
b
th
private se tor
f t}
J
J
'.
_

The

economy.
that

t(/al

eral
tQ

increase

1053

indicates

from

$4.1

billion

1956 to $6.3

billion in

Under nresent oirrumsfanre*?

essential

ture

Budget

expenditures for Fedpublic works are estimated

postpone to lubut the most vital

all

years

projects.

further
COsts

The

increase

which

alternative
in

will

construction

reduce

what

the

government,
private
individuals
and businesses
get for their doliars.
Defense

Non-Defense

vs.

Decisions
The

largest part of the present

Budget
is

for

tification
on

the

national

for

disbursement

security.
this

side'

The jus-

rests

basically

the uncertain condition of the

world and particularly the threat
of Communism.

There

way

in which the figures representing
national
analyzed

defense

items

can

completely by an outsider. Even those who are entitled
to full information, such as the
Armed Services Committees of the
Congress, and the civilian and

military leaders in the Pentagon
would

unable

prove

con-

clusively that the estimates

used

are

the

right

budgets
certain

ones.

develop

assumptions

strategy

and
the

Military

largely

out
to

tactics

required
These

country.

of
the
to
as¬

restrain expenditures without im-

always debatable
and
exceptionally
difficult
to
mgke today because we are in a

pairing national security

PeH°d °t rapid evolution.

ways

vital

national

proper

objectives.

other

Also, if

weight had been given to

the

importance

the

same

result

tax

would

reduction

have

fol-

lowed.

cepted as the best judgment that
be applied, one is confronted

can

with

first

look

the

pels me to ask

tions.

now

Are

Budget im-

committed

an annual expenditure of $5 billion for aids to agriculture, and, if

why? Why are we now planning to have FNMA buy $1.7 bil-

so,

tual

enterprise

been

question

been

question

number of ques-

abandoned?

What has happened to the theory
that as social insurance benefits
increase public assistance expenditures by the Federal Government
will decline? Between fiscal 1948

are

If the present level of national
security expenditures must be ac-

not

school program is not needed
On
the
contrary, there is clear evidence of a shortage of classroom*?

defend

by raising tax rates—
would have been found to

lion of mortgages in the two fiscal

The

States will have tripled he¬
years 1948 and 1958,

sumptions

secured

years, 1957 and 1958? Have plans
for making FNMA a private, mu-

issuing

the

country

States and local

would

structure of the system provides a
strong incentive for financing all
kinds

this

should

forthcoming—had, for example, to

invested

and

ventures.

wiW

penditures down, we must seek to
reform our tax system by alter-

tax.

the

contains

being

happened also

sponsibility for financing and ad¬
ministering
programs
involving

ex-

Questions Budgetary Items
Tax Threat to Future

$300

billion.

consensus

the

fiscal year

will permit a general tax
reduction within the confines of
which
basic
reform of
the
tax

the

revenue

advanced, and which if long
tials of

or,

at least hold down their rate of

difficult

undermine

from

doubled, from $0.7 bil¬

$1.7

What has

re-

courses oi action.
First,
try to reduce expenditures,

we can

system and weakening of taxpayer morale which is already far
will

the

possible

enq
on

sive process of deterioration oi the

tinued

view

There are, in this

dis-

against.

embarked

are

for

necessary

U. b. b. K.

not

the

survival

our

may

ported rapid growth rates

comes more and

tages

rnnlrl

pcnnnmv

nchipvp
?s our economy could achieve

indeed,

kinds

that it should be subject to tax.
Pressure then arises, with cons'd-

area

n.ot

rate of growtn

certain

where it becomes

nnr

rates

hav®

we.

rapid

we may

patently unfair
'

activity that are valuable to the country.
But every
time one class of exceptions is
created another class of
exceptions
is brought close to the borderline

one

political leader after another
saying
that he does not know or
see where the
planned outlays
of the Federal
Government for fiscal 1957 can be
reduced.
One would
suppose that there was some
inexorable law
of nature which
compels government to be
extravagant
in the
extreme, or some dire
emergency which compelled
the people to
pour out their funds even as the
politicians
suggest or direct. Of course, the
plain unvarnished truth
of the matter is that
vested interests have been
created in
largesse which few politicians dare
ignore or

shortsighted

y e a r s>

economic

schedule
a

are

This

growth.

sal

—

which

there

achieved

back

A Sad

seems

growth.

pleased with the growth

sharp

New Deal
years. It was

economic

system

inconsistent

done this because it has been
posin a great many cases to

still

half dozen years it had all but
doubled,
23%, In 1956 a year of unprecedented ac¬

cannot be regarded

sible

within the

lasbionable to say that, in
view of the rapid growth of the
American economy since the end

show that the

literal

security ben¬

risen

$7.2 billion, but public
assistance expenditures will have,

Should

not

would

rates.

ways

has

de¬

particular
particular

transactions

erable
logical
foundation,
bringing the new borderline

persists. In

for

liability.

view.
First,
advantages in the
present tax system which justify
us
in courting the
very real risk
that, in the long run it will senously impair our future rate of

rates.

long,

complicated list of cir¬

cumstances

classes

but we had become infected with the
virus of that brand
of semi-socialism which calls for
a
permanently expanded
role of government. A new rise

accordingly set in which

tax

with

schedule of very

would either be

Government absorption of the current
product natu¬
rally rose drastically during the war. At one time it
touched 46%. One would
normally expect it to decline

the

erected

did, not

along.

of the war, the present tax

and

they cannot rely heavhy

place the system
is basically unfair.
Congress has

The

who

with

In the first

classes

Deal

forward

■■m"

funds for new and growing enterprises that need outside money

minimize

equanimity to continued existence

$8 out of every $100 of
production in this country went into government hands.
New

Structure

look

have

tween fiscal

Avoiding Long-Run Inflation
And Strengthening - Competition

„

economic life is

1929?

will

Budget indicates that Federal aid

Tax Rate

realize that government's role in

efits

million

to the
rn

Thursday, March 7, 1957

and fiscal 1958 social

local

Three Times

great deal that

now

work

Two

doubly serious.

the rank and file of the unwise nature of

proper, so much so that to

discredited

is danger that it will
require generations of time
good deal of sad and costly experience to convince

Continued

It is clear therefore that

which

There

and

taxes

large corporations that the full burden of taxation is not
completely understood or realized by the rank and file.
Neither do the majority of the
people understand or ap¬
preciate how much they pay in hidden taxes each and
every day of their lives.

such

which

willing
is:

have

face.

The

must

devote

such a high proportion of
Budget to defense, with the
sibility, if not

the

our

pos-

probability of

enlarging it, is it wise and leasto increase our non-defense
expenditures in the short run so
far an<f so fast?
I realize

already
difficult

that, with commitments

made,
to

expenditures.

taking steps
expenditures
trcl.

going

much
But

now

under

CED has made

recommendations

about

1958

should

bring future
better
a

con-

number of

for
improving
budgetary procedures, in the Ad-

Number 5618

185

Volume

which

urgently

are

than when they were

now

needed
first of¬

lines

those

seriously

most

feu

workers and management

of credit shortage will

effect

the

the Congress,

ministration and

activity that are most

dependent upon borrowed funds.
this
by itself deserves
to be called discrimination seems

fered two years ago.

ticular firms

Without

Reform

Tax

Reduction

What
make

cannot

for

room

Then

auction?

general tax

re-

defin¬

should

to me questionaole.
However tne
validity of these compiaims should
be the subject of careful study,
and further comment here is lim¬

not

ited

itely consider something that has
never been done in the history of
Federal Government—a major tax
revision

tax

reduction.

by tne Committee for Economic
Development, deserves serious

Poses

excise

lective

taxes

alcoholic

present

the

Eliminate

(2)

rates

se¬

those
to¬

except

poses
make

and

beverages

bacco, and the highway taxes.

in the mortgage

tax

imposing

tax.

overall

some

would

tion
to

expenditure

that the rate of the gen¬

assure

would
possible.

eral

consumption

kept

low

Reduction

revision

and

crease

somewhat

that

money

might,

consumer

in¬

and

these

changes

line

this

would

the

fore

It
in¬

amount

saved

tne

part, reduce slightly
spending. In any event,

consideration
reform

taxes.

would

the

was

Some

vested.

probably

and

the

morale

respect

might

would

tax

restore

country

tax

income

personal
much

reduc¬

in order

available

that

hoped

tax

bring squarely be¬

country the opportun ty
Congress both the

to debate in the

of the

inequity

present personal

income tax structure and the mag'

nitude

Certainly
with the

drift

cannot

problems.

vives in the absence of
consensus

and

all

—

from

foty Influencing inter¬
est rates is thitysuperficially logi¬
cal
progression from pegging
mortgages at 4<% to pegging scnooi
bonds at 3Vfe% to pegging Federal
proposals

securities

busi¬

supply of funds available from
current
savings.
As
a
result,
credit'has become more expensive
to

has

Reserve

The

get.

banks could

which

Federal

generally

not

the increased

plied

sup¬

reserves

expand credit

beyond the amounts that individ¬
uals and businesses were willing
to

policy

By following this

save.

the Federal Reserve prevented tne
inflation of 1956 from

it actually

than

worse

being much

that

.is

fact,

lishment of

anything
calls for the estab¬

else, that now
a

than

National Mone¬

new

We cannot ex¬
public body like the Fed¬

tary Commission.

pect

eral Reserve to continue to adhere

anti-inflationary

the

policy

actively resents the
a policy imposes.

public

discipline such
The

Subcommittee of the Joint

Committee

Economic
Senator

did

Patman

man

Douglas

chaired

and Congress¬
valuable work

raising public understanding of
national financial problems.

our

it is quite clear that the task

But
of

and

study

field

education

this

finished.

is not

The main

mon¬

etary policy in the past year has
not

been

that

was

too

ti-ht

ers,

small

course

now

ate,
it

but how we will
make the two compatible.
In addition to monetary and fis¬

there
are
three
approaches to this prob¬
wages and

restraints,

lem: direct controls of

evils of

the

We cannot

inflation.

inflation, and inflationary
policy, as the preferred alterna¬
tive to monetary restriction.

(5) With the possible exception
of the labor market, no other mar¬
ket

important

free

than the capital market.
If the government determines who
economy

capital and on what terms
government controls the birth
and growth of all businesses. Only
the most compelling evidence of

get

the

with selective

controls

ences.

prefer¬

President's

Economic

Re¬

and other recent messages,
call attention to the basic d.lem¬
ma of
stabilization policy.
Sup¬

port,

pose that as o.ur economy is noworganized high employment and
general price stability are incom¬
patible.
This would mean that
when employment is at a satis¬

factory high level, wage rates tend
to
rise faster than productivity,

the

the average, and prices on

for

I as¬
rule out direct

can

We do not want to solve

problems by giving up free¬
We have every right to ex¬

other
dom.

responsible

pect

matter

from

behavior

But

and businesses.

labor unions

of such

fundamental

gravity, we cannot rely exclusive¬
ly on that. Responsible behavior,
while clear enough on the aver¬
in

also tend to rise, whether
of the higher wage rates
other reason.
Then

some

organized

now

the

need

most

praisal

we
shall
searching reap¬

employment,

high

our

economic

organi¬

zation. We shall have to do every¬
we

can

before long CED
will be
a policy statement
on the problem
of long-run infla¬
tion. The problem is one of great
difficulty
and
importance,
and
must be approached seriously and
I

that
issuing

hope

without premature

resignation.

Charles Steegmuller

with which

problem

beep concerned for some
time and which one of our Sub¬
CED

March 2 at the age of 77.
Prior to his retirement in 1955 he
was associated with Hallgarten &
Co. Mr. Steegmuller for the past

It is

committees is now studying.

entirely clear whether the sit¬
uation I have just described as a
not

hypothesis
some

actually exists

the

rates

are

prices are raised in periods of
high
employment.
There have
been
some
periods
when
this
seemed
to
be a
general occur¬
rence.

But

whether

this

tends

not

hot

know

happen

excessive.

that there are strong

and serv¬
We

have become

Investment

Thomas A.

Kermit R. Limdouist
affiliated with Allen

Company,

Mile

Hi^h

Center.

know

forces tend¬

tically all of the conspicous struc¬

Production

States,

United

the

came

than

less

World's

consumption,

our

17.

Venezuela

supplied 23% and
is roughly ac¬

develop

may

But

billions of barrels in them.
far

orthodox structural features

go, we may well be getting to the
bottom
here, whereas in Iran,
that the United
Iraq,
Saudi
Arabia
and
other
States supplied half, the Middle
countries in that great oil area,
East a quarter, and Venezuela a
we
have far from exhausted the
sixth of the Free World's oil in
possibilities of finding more oil
1956.
even using present day methods.
Can we count on a continuance
Moreover,
the
Middle
East
of
supply in those proportions seems to be an almost
unique

curate and much easier to remem¬
ber

say

those sources?

from

drawing

which the

producing countries are
on their oil
"bank ac¬
help us answer that

may

question. United States petroleum
production last year amounted to
8.1% of our domestic proved re¬
and Venezuelan production
6.8%
of its reserves.
But

serves,
was

Middle

production

East

was

only

of Middle East reserves.

1.3%

Obviously, the principal

West¬
Hemisphere sources of oil —
the United States and Venezuela
ern

being

—are

seven

times

drawn
fast

five

those of the

East.

Middle

Where else do

miles

large,

folding.
know of single

e n

from

measure

oil

accumulations

anticlinal

which

with

there

u n

150

length, and contain five

billion to 15 billion barrels of oil?

Many people have

pointed out
oil well in the
United States produces 12 barrels

that

the

average

day whereas the average out¬
put per well in the Middle East
a

perhaps

5,000.

dramatic
taken

to point

I mile

out that it has

of hole in this

coun¬

five

feet of hole have found out there.

As I said, in the oil business
anything can happen, and oil men
still tell the story of the expert

50%

nearly

and

of the

consumers

world's
nearly

who

shale

oil

getting

possibilities

from

from tar sands, the facts

persist,

that
if present trends
the Western Hemisphere

will

out of oil before the East¬

suggest
run

Hemisphere does.

are

talking, of course, about

reserves.
How about
chances of finding more oil?

oil

proved
Oil

hopeful.

forever

are

men

They know from experience that
no matter how good their geology,
or
how careful their exploration,
can

one

relatively

try to prove as much oil

Overlooking for the moment the

combined

are

States, with roughly

output

the

mentary

of the world's reserves, pro¬

The United

20%

ern

province.
Marine sedi¬
deposits in great depth

geologic

A look at the rates at

not

that

say

oil

until the horizon

is there
is tested

And admittedly only
a
very
small proportion of the
area
in
country has been
any
by the drill.

and More Oil in

sometime

the

drink

all

basis

the

turn

volunteered

the

oil

ever

Mississippi.

the

west

the

around

century

nearly

found

But

century

experience, the odds against find¬
ing another oil province on this
earth comparable to that around
Persian Gulf are

the

make

such

the

for

hope

too great to

World's

Free

sound basis
long-range

planning.
So

Not

Self-Sufficient

Right now the United States and
its neighbors of North and South
America

are

self-sufficient

Though there has been

petroleum.

and still is some movement of oil
between the Eastern

and Western

Hemispheres—in both directions—

Have

relative

any

evidence as to the
of finding more

chances

oil, in America as against the rest
the world, or in the Western

©f

Hemisphere

Columbine Sees. Add

against

ern

Hemisphere?

may

especial to The Financial Chronicle)

help

the

East¬

few

facts

to draw your own
Since Colonel Drake

you

conclusions.

Broadway.

within the Americas to sup¬

ply

the

ever.

should

nations

can

hope to

either
politically
economically.
Not
even
a

hemisphere can any longer aspire
to that.
One has only to think
back on two World Wars, Korea
lin

With those

That

to complacency, how¬

Our world is no longer one

which

and

country.

self-sufficient,

McDonough and Roy B.

our

Americas.

not lead

Aabel, Virgil R. Carter,

drilled in

oil produc¬

present enough

tion

Middle East

employment and business activity,

—

The Middle East

school

and

Some day

tures have been tested.

effective tool
with which to find stratigraphic
nearly half of the Free
there may be many
total
48% to be exact. traps, and

while

it is true that

ing to make prices and wages rise.
But there are also strong forces

Yet we know that

acreage of the
United States has been pretty ex¬

potential

primarily from the United States.

Less Wells

Club Building.

Harry

actual

than

other

exploration

wildcat wells.

it is nevertheless a fact that there

Gar¬
rett, Jr., Loyd I. Loew and Hyman
P. Silverman have been added to
the staff of Carroll & Co., Denver

—

haustively explored, and we can
be reasonably certain that) prac¬

especial to The Financial Chronicle)

Colo.

has

minimum

going to get it?
production came

are

Last year's oil

DENVER, Colo.—David L.

DENVER.

with

exploratory effort before drilling.
We have no good statistics on oil

much

that

East oil

Middle

found

drilled.

Carroll Adds to Staff

most of the time

if the demand for goods

Grennan and

—

that

pushed tp
than productivity, and some
wage

faster

know

States.

United

ices

Chronicle)

has

DENVER, Colo.

been

ex¬

60%.

passed

away

CSpecial to The Financial

Future Oil Source
Where

oil

Charles A. A. Steegmuller

twice

need

this

most

the

duces

With Allen Inv. Co.

This

will

have

in the
1,000 times as

prove

We must also bear in mind

it is using today.

tends to

generate inflation under conditions
of

fiscal

and

monetary

oil

various

policy to 40 years had been Secretary of the
prevent inflation would succeed Columbia University Colleges of
only if it brought about excessive Engineering and Architecture class
unemployment. ' And a policy to of 1905.
maintain high employment would
inevitably lead to inflation.

World

than

States with

wells.

many

little,

unreasonable to

not

seems

counts"

omy

slow down

even

is terribly difficult to define
particular cases. If our econ¬

age,

thing

Wage-Price Problem

The

that we

controls.

competition.

and

to strengthen the
forces of competition in our sys¬
tem that tend to hold prices down.

...

The

business,

such

growth continue, acceler¬

billion

managed
United

pect that sometime between 1965
and 1975—if not sooner—the Free

dollar,

general

only nine

was

Whether

ago.

years

rates of

sider, not how we will choose be¬
tween
high employment and a

cal

ten

We must con¬

arise in the future.

stable

double what it

was

may

1,500 wells

by those

tending to hold them down. Even
in
conditions
of
generally high

businesses

exist

oil found

William T. completed the first producing oil
well in the United States 98 years
Robertson
have become affiliated with Col¬ ago next August, a total of 1,638,000
petroleum wells have been
umbine Securities Corp., 1780 So.

general but that it "discrimin¬
ated"
against certain classes of
borrowers—especially homebuilddistricts.

does

Increases in oil use have

tion in the Free World as a whole

that the

possibility

the

dilemma

By contrast in the Middle East
countries,
around
the
Persian
Gulf, fewer than 1,500 wells have
been drilled. Yet the total amount

countries. Last year's oil consump¬

At the same time we must take

seriously

barrels have been consumed.

is at least 105 billion barrels. That

fear.

sume

the average and

complaint about

in the way we

found, of which eight billion

been

been still faster in less developed

and prices to rise, wages
prices will certainly behave

and

ning, something like 18,000 wells
bave been drilled and over 21
billion barrels of petroleum have

nually.

begin¬

the

from

Venezuela

consumption
I can

billion already have been pro¬

In Europe during the same
period demand has risen 12% an¬

operation of a tight money
policy they are small compared to

because

deserved and required.

this

the

average

was.

the Federal Reserve was
following correct policy, it began
to appear as
1956 wore on tr.at
the policy did not have the pub¬
lic
support
and
understanding
K While

already exists.

high

94 bil¬

duced.

year.

prices, self-restraint by labor and

governments

harder

point

(4) Whatever discriminations or
other difficulties may be found in

the

and

Once we reach

3%,

also, we have had sad experience.

home buyers and state and
— has
outrun

nesses,

inflationary fat is
the fire for sure. On this point,

this

ment

the demand for

kinds

most

necessity should lead the govern¬
to intervene in this market

Credit Policy

In the last year

credit

national

how to change it.

Money

local

along

present tax system whicn
but which on'y sur¬

likes

one

fiscal

our

of any vpsset.
One of the
worrisorri.d-aspects of current

price

made

yet

ever

at the rate of about 5%

grown

way

has

have proved

barrels of oil, of which some

lion

few straws in the wind,
however. Over the past five years
demand in the United States has

wages

the

support

Reserve *to

Federal

general consump¬

tion

surest

was

point to

ready to inflate the economy
take care of any tendency of

should'avoid like the
any
commitment of tne

plague

and, to the extent necessary,

as¬

stand

(3)

reduce income subject to

now

the

high

the"

Moreover,
as

wells

oil

reputable

subsequently proved to be.

mone¬

develop the problem would be to

kinds of exclusions and deductions

that

fiscal policy

that

because

say

that

lack of knowledge,

inflationary policy that is consist¬
ent with high employment.

act

today,

long-range forecast of oil demand

our

employment
and general price stability are in¬
compatible.
For one thing, this
would be too easy an excuse for
failure to pursue the most anti-

>v* i

field.

economist

state

be unwise to base

sumption

les¬

arh-instructive

had

this point

present

tary and

money

have

son

(3) Recoup the revenue lost by
.eliminating some of the many

it would

for those pur¬
cheaply available. It may
money eiitirely unavailable.

make

not

Inflation-Employment

knowledge,

Fixing maximum interest
for specified purposes does

(2)

consumption

oil

going to be a lot bigger soon.
How big, how soon, I am reluctant

the

employed economy, we do not get
something for nothing.

.worthwhile amount.

Middle East Oil

Problem

factories, or office buildings
even
automobiles.
In a fully

(1) Reduce the personal income
tax
across
the
board
by some

page

consideration:
•

first

Mankind's Stake in

busi¬

and

they are.

capacity. In such conaiiions, pro¬
moting certain kinds of invest¬
ment, like housing, necessarily re¬
sults in less of something else,

lowing possibility, which has not
endorsement

-had prior or present

unions

labor

really had the power, singly
or
together, to raise prices and
wages without limitation by the
market, we could not explain why
prices are not much higher than

to arise when the
operating
near

only likely
economy
is

Continued from

par¬

must

ness

(1) The problem of tight money

fol¬

The

kets.

observations.

brief

few

without sub¬

and reform

stantial

industries

and

reckon, with the danger of pric¬
ing themselves out of their mar¬

Whether

(1131)

The Commercial and Financial Chronicle

the critical

airlift,

days of the Ber¬

to consider our pres¬
SEATO, and

ent stake in NATO.

Continued

page

The Commercial and Financial Chronicle

(1132)

Continued

from

tive philosophy. For example, he
believed in property rights; in¬

page

the Arab penalty for rela¬

deed,

tively

Mankind's Stake in

minor

ordinarily

stealing

taught that

East Oil

his

bond.

taboo,

and

religion
alliances

other

realize how

utterly outdated is the idea of real
political self-sufficiency.
In the

of economics, the in¬

area

terdependence of Free World
countries is equally evident.
We
all must interchange a multitude
of raw
materials and manufac¬

Morever, the day has
long since passed when an eco¬
nomic collapse in Europe, or Asia,
tured goods.

would

point I

affect

not
am

trying to make is that

continued

our

East oil

The

here.

Middle

access

is important not only be¬

Europe and Asia and Africa

cause

dependent on it now and we
Western Hemisphere may

are

the

well

are

be¬

East and the

the Free

West

also

but

tomorrow,

cause

inescapably

Free

dependent

each other.
Middle

to talk

now

the countries

production was about
barrels a day.
About
600,000 barrels came from Iran,
800,000 from Iraq, 1,200,000 from
Kuwait,
about
1,000,000
from
Saudi Arabia and about 100,000

Neutral

Kuwait

Egypt.;
the

balance
the

Persian Gulf ports,
of crude

ate

products

East,

their economies and governments,

not

precise

in the oil in¬
it as including

but

dustry we regard

Iraq, Iran, Kuwait, Saudi Arabia,
Jordan, Lebanon, Syria, Israel and
Egypt,
plus
the
Sheikdom
of
Qatar, the Island of Bahrein and
number

sheikdoms

smaller

along
the
Trucial
Coast,
and
finally Aden with its protectorate,
and Yemen.
Most of this great
,

for

area

several

the end of World
of the Ottoman

were

many

War I

until

part

was

Empire.

to remember that

ries

centuries

It is well

present bounda¬
these

countries

established by the League of

Nations, and that their status as
sovereign nations is relatively re¬
cent.

Though

of these countries

some

much

are

advanced

than

others, the area as a whole is,
by our standards at least,, lack¬
ing in industrial development, and
oil

for

except

relies

agriculture for its

largely

Oil

and

transaction.

Bearing

re¬

ponderant
the

point
as

the

find

oil

rev¬

with

Kuwait

from

Iran

1,200,000 bar¬

with

million

oeople has 600.000 barrels

Iraq

Saudi

and

day.

have

Arabia

re¬

rainfall

from' 110 miles'of Tapline.

revenue

Syria

up some

and

Lebanon

transit

are

countries for both Tapline and the

Agriculture is
and

from

such

resources.

therefore arduous,

animal, husbandry

exists is

by nomadic families and
tribes, the Bedouins. >",•
Governments

from

vary all the way
feudal
sheikdoms

the

through absolute monarchy as in
Saudi Arabia, to the parliamen¬
tary democracies of Iran, Iraq, and
Lebanon,

I hesitate

define the

present governments of Egy+pt and

Syria.

Perhaps

"dictatorship"
them, al¬

would best characterize

though

paper both are democ¬
with
Presidents,
Prime

racies

Ministers
trust

and

that

legislature^.

the

suppression
of
democratic practices there is only

temporary.

Arab country, nor
is Israel. All the others

course

There is a strong Arab na¬
tionalistic feeling in all the Arab
countries.
There
is, of course,

are.

deep

love of
country, by - the
Iraquis for Iraq, the Lebanese for

Lebanon,

etc.

questionably
Arab

bond

But
a

there

very

which

strong

some

"man

of the Arab rulers,
in

the

street"

Beirut,

Damascus, and Baghdad.
In
my
view, this strong Arab
feeling of kinship is a factor of
first
importance in the Middle
East—we

cannot

ignore it, and it

would

unrealistic

all

its

unpleasant

manifesta¬

ascribe

tions to Russian influence.

Before

the

Suez

crisis, Middle

big

In passing, let me point out that
while Middle East oil production
is

deter¬

hearts

our

distributed

four

among

maior

not

producer

cut

can

have

own,

can

course,

Jordan,

which also
oil production of their
cut Tapline.
And, of

Egypt

which

far

has

relatively little oil production
close

has- closed

and

Canal

all

Persian Gulf oil.
over

oil

the

deal with
in

good
re¬

their comparatively

can1

west-bound

dissociated

almost

from

the

countries with oil production.
now, I

The

approach, I think,
be along the line of achiev¬
reasonable dispersal of our

must

ing

other

commitments.
can

and

The best of friends

fall

out

occasion,
unduly
single individual
on

might

offset

the

large

very,

Canal

tankers,

which could proceed via the Cape
of Good Hope, and by virtue of
the size of cargo achieve fairlv

low

cost

connection

freighting.

might say that

tankers of 100.000

travelling

via

suffer s9me
as
against

this
even

deadweight tons

the

would

Cape

ship

40,000

say

deadweight
but

transiting the Canal,
disadvantages would not

the

be ruinous.

short

duration,

be obtained bv carrying larger
of petroleum products in

stocks
the

to
idle

course,

allies, have

a problem is all
Now, what can we do

excess

each

gether with
handle

of
a

producibilitv.

to¬

of facilities

reserve

it, is insurance against

shutdown elsewhere.

Standby facilities of

The

could

any

kind

safeguards

are

costly

are

have

exception.

But

not

have them.

Paying
It
two

Broad Approaches

seems

broad

make.

that

approaches

The

first

are

can

would

Stockpiling Costs

Whether industry

there

could,

providing
question

establish and maintain such rela¬
tions with the Middle East coun¬

deny their oil to us. This ought
not to be unduly difficult. There

that

strong mutuality

between
wide
tween

East

surprising
The

and

differences
and

of interest
them.
Despite

West,

amount

Prophet

customs

there

be¬

common.

Mohammed,

whose

its

the
safeguards

pay

these
still

resolved.

would not be unreasonable to

page

level,

for

soon

makers

auto

will

have

into

come

the

steel, it adds.
-bY-/" \
Sevetal signs point to a pickup in the demand for steel by
midyear, "Steel" noted.
'"''"y- ■
' ' y-'y
Some

will

ments

sellers

delphia and

York

have

the

hot-rolled

New

Boston

carbon

think

areas

their

bars

steel

the

inventory

consumer

course

the

end

June will be

the

Phila-•

adjust¬

upgrade.

run

buying in May and

cold-finished

carbon

April and that

steel

bars, whichlagging in demand, are picking up slightly for April
delivery. The New England area also saw a mild flurry in late
buying of cold-rolled and hot-rolled carbon steel sheets for
have

area,

been

March

delivery.
'■ y-^Yy '■!%
% *Yy'%Y-Y'.;
Chicago area is seeing a modest pickup in agricultural
General manufacturing is well sustained.
.

The

implements.

Seattle, order backlogs for reinforcing bars are substan¬
Approach of spring is quickening interest in building con¬
struction and is adding to the demand for reinforcing bars.
On
the West Coast, most second quarter order books of mills are just
about filled and indications point to full books for the third.
Steel consumption and metalworking activity during January
and

February have

been above

the

months

same

last

year,

the

that

the

publication reported.
The

American

operating

rate

capacity

and

Iron

steel

for

Steel

Institute

companies,

the

entire

announced

having

industry

96.1%

will

of the steelaverage

94.9% of capacity for the week beginning March 4, 1957, equiv¬
alent to 2,429,900 tons of ingot and steel for castings, as compared
with 96.0% of capacity, and 2,456,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1957
is based

annual

duction

capacity of 133,459,159 tons

like week

For the

2,485,000

month ago the

tons.

year

placed at 2,462,000 tons

was

rate

1, 1957.

97.1% and

pro¬

the actual weekly production

ago

100.0%.

of Jan.

was

The operating rate is not

comparable because capacity is higher than capacity in 1956.
figures

percentage

128,363,090 tons

1956

for

based

are

annual

The

capacity

of Jan. 1, 1956.

Electric Output Continues to JEase in Latest Week
The

of electric energy distributed by the electric
industry for the week ended Saturday, March 2,
estimated at 11,791,000,000 kwh., according to the Edison

amount

light and
1957,

power

was

Electric

Institute.

This

was

further

before.

decrease

from

past week's output dropped

the comparable
March

Car

week

129.000,000 kwh. below that

previous week; it increased 592:000,000 kwh.

ended

the

■

The
of the

1956 week and 2,064,000,000 kwh.
5, 1955.

5.3% above
the week

over

Loadings Dropped 7.3% in Washington's Birthday
Week

freight for the week ended Feb. 23. 1957,.
which included Washington's Birthday, declined by 49,330 cars
or 7.3%
below the preceding week, the Association of American
Loadings of

revenue

decrease of

cars,

1956

week,

and

week

60.382

ended

cars

decrease

•

Loadings for the

Feb. 23, 1957, totaled 626,636
8.8% below the corresponding

4,436 cars, or 0.7%

responding week in 1955.

exceeded

below the
:

cor¬

,-y

commercial

certain essential

re-

materials

substantial scale.

This
access

problem

maintaining

bv the West to Middle East

oil is but one of many and

Automotive output

for the latest week ended March 1, 1957..

according to "Ward's Automotive Reports,"
due

increase in

truck

was

production.

Last week the industry assembled

slightly improved
\

•

estimated 138,938 cars,,
compared with 139,038 in the previous week.
The past week's
production total of cars and trucks amounted to 162,738 units, or
an increase of 358 units above that of the preceding week's out¬
put, states "Ward's."
^ • •
Last week's car output fell below that of the previous week
by 100 cars, while truck output increased by 458 vehicles during
the week. In the corresponding week last year 132,889 cars and
24,643 trucks were assembled.
Last week the
agency
reported there were 23,800 trucks
made in the United States.
This compared with 23,342 in the
previous week and 24,643 a year ago.
;
Canadian output last week was placed at 8,310 cars and 1,569
an

1.635

In the previous week Dominion

trucks,

the comparable

and, for

2,005 trucks.

plants built 5.168 cars and
7,885 cars and

1956 week,

Business Failures Declined in Latest Week and
Were Below

ex¬

Our own government
is essentially doing this by stock¬
a

Industry Increased Its Unit-Volume yv
a Result of Higher Truck Output j
]•

nuirements.

piling

U. S. Automotive

governments to absorb some
the cost of standby facilities

present

market

trucks.

alone should,
whole bill of

pect

tries that they will not
arbitrarily

from

This Week

saying that to
producing country

about it?
Two

final

inventory is costly.

have

costly.

too evident.

Continued

without

goes

some

It is ex¬
tankage and. of

build

mentioned

pean

the

international

have

consuming countries

pensive

Euro¬

Railroads reports.

interruptions
can

perhaps

our

continue to become a better place
in which to live;- *w ^ "v;;'
ITi"

force

outmode

guess

shall

urgency

That

Some protection, at least against

ground against wThich this problem
must be considered. That
we, and
we.

being so, if we solve our oil
puzzle, it may help to fit in the

desperate

disadvantage costwise

have tried to show

than

disputes.

arbiter

and it is foolish to become

All of these ideas, as well as
why Middle East oil is of vital others, are under consideration by
importance to us, and I have tried, oil people and by governments in
to
give you some of the back¬ all
parts
of
the
World.
Free

is that though we
plenty to think about,
we shall find it
possible to work
things out so that the world will

with

making

Advocates Dispersal
f

Suez

Thus the control

transportation

entirely

the

to deal with the oi I 'problem; 4*

na¬

tial.

independence, we shall suc¬
They and we have so much
gain from a close relationship.

all

branches of both major pipelines.
Lebanon

mankind

ceed.

producing countries, Syria which

the

unquestionably been admired
the

pride in

un¬

feeling of these peoples for their
land.
For example. Col. Nasser's
of Suez, though not fa¬
vored

the

Mediter- '

the

ranean.

pan-

underlies

seizure
has

terminals

time when

striving

express

you

Arab Nationalism

■of

tanker

Up to

Iran is not

the

Easterners

Another

-country, picks

very poor

Apart
Euphrates and

other water

can

spectively nearly five million and
dependent on a
seven
million of population
and; or nation. There is much that we
800.000 barrels a day and about
can do to better
disperse our op¬
1,000.000 barrels a day of oil pro¬
erations. We can build additional
duction. Obviously oil fields and
pipelines, and over routes which
population have no visible rela¬ will avoid
the possibility that all
tionship.
—
can be shut down
by one govern¬
Oil
revenues
come
not
only ment. More pipelines will reduce
from
production
but also from, the importance of the Suez Canal.
pipeline transit fees.
Jordan, a

economy.

the

neces¬

new

today, let me
of the facts of life

them.

day.

gard for their intense nationalism

200,000 of population enioys

revenues

rels

that

interdependence

tions at

"whereases" which

Middle

way

Yet I think that if

East

some

the

dear

legal fraternity.

Population

mind

Middle

faith, patiently, and with due

Iraq Petroleum Company pipe¬
Tigris,
lines to the eastern Mediterranean.
Nile
Valleys and the Mediter¬ Each of those
countries also de¬
ranean littoral, it is a land of little
rives some income
from

Arabic

are

by all odds the pre¬
economic
element of

are

So far

mine, there is

and
enues

reduce

to clearly state the provisions
intent of a complex business

sary

via the Suez Canal.
Ratio

The Arab language just

doesn't have all the words

quantity or about 1,500.000 barrels
daily went to western destinations

The term Middle East

area.

difficult

writing.

and how the oil business operates
in the

contract in Arabic, and even

the

either in the

the

in larger commercial transactions.

various

from

tankers

creasing

and

Then, too, it is difficult to negoti¬

locally

used

amounts

rights,

Perhaps the greatest difficulty
find in our dealings with the
Arab peoples is that many of them
lack background and experience

nt,

except for

production

small

moved

All

Lebanon.

though,, that practically all pieces for some of the others. < And
problems have a common* conversely, as some of the bthers
origin. They arise out of the in¬ get solved, we may find it easier
ca

of these

real private enterprisers.

500,000 barrels a day were
moved
by pipeline to ports in
Syria and Lebanon. About 320,000
barrels
daily of Saudi Arabian
crude
went
through Tapline to
in

Arab

polygamy,

well-defined

By tra¬
philosophy, the Arabs
Communist disregard
for family, religion and property
rights, and appear at heart to be

than

Sidon

permits
have

abhor

production,

Iraq

Adultery is strictly
though the Moslem

Thursday, March 7, ,1957

protected by law.

dition

Bahrein

Zone,

man's word must

women

from Qatar. Then there was some
additional
production
from the
and

is extra¬
standards.

our

and are

fined at Abadan, Ras Tanura and
Bahrein.
More than half of that

East

little about

Middle

of the

oil-

3,700.000

form

Discusses
I want

East

severe

varied

teachings largely constitute Mos¬ international problems in today's
lem. Law, had a pretty conserva-*
complex world. It may be signifi-

Commercial :and
ended

Feb.

trailed

the

dropped

mark

the
of

1955

284

total

year-ago

according to Dun &
above

Corresponding Period of 1956
industrial

failures

from

293

for

Bradstreet, Inc.

week's

total

222

the

reported

300

before

week

corresponding

The latest figure
and

the

pre-war

week
and

week,
well

was

1939

week

254, it stated.

Wholesale Food

Price Index Registered
.Slight Loss the Past Wreek

Further

The wholesale food price index, compiled by Dun & Bradstreet, Inc. declined slightly to $6.11 on Feb. 26 from $6.12 in the

«-

Volume

185

Number 5618

preceding week.
or

increase

The Commercial end Financial Chronicle

It compared with $5.95 at this time

Continued

year ago,

Iambs, hams, flour, wheat, rye and sugar. Lower in price
corn, oats, lard, butter, coffee, cocoa and eggs.
The
of 31

index

the

represents

total

sum

the

price

Credit

were

tion is to show the

general trend of food prices at the wholesale

Commodity Price Index Shows Mild Recovery

Latest Week From Year's Low Point

After reaching

the lowest level so far this year, the Dun &
Bradstreet daily wholesale commodity price index inched upward
slightly. At 291.02 (1930-1932 = 100) on Feb. 25, the index was
above the 290.93 of the prior week, and it remained higher than
the 281.86

Grain
week

year

ended

Feb.

There

toward

Reports of rain

West

and
fore

ing

and

capital

expanded

for

nancing
of
equipment is

some downward pressure on wheat prices.
prices strengthened somewhat and oats prices rose "reflect¬

sharp^ decrease in marketings. Daily

and soybean futures

day shortened

four

average sales of grain
the Chicago Board of Trade in the holi¬

day

week averaged

day, compared with 50,000,000 bushels a week earlier and 62,000,000 bushels in the corresponding week a year ago. Trading
volume was below last year's level in wheat, oats, rye and soy¬

beans, contrasting with

moderate increase in the sales of

The strength in corn

policy

include

attributed to

was

sales

number

and

number

tprifl

interpreted to

was

lower grade

ment

flour

both

domestic

for

and

relief

forJ shipment

abroad.

with

for

domestic

prices strong.

Rice

use.

buying remained

bad

active
remained sub¬

demand for rice

The export

very

one.

Coffee

trading

Imports

recent

in 1956,

week

past

with

little

very

coffee

with

Commerce

the

from

1956

amounted

billion

2.8

billion pounds in 1955, according

2.6

pace

Department.

Sugar refiners

quantities of spot
workers'

dock

ago was the slowest
waiting for the clearance
which had accumulated during

strike.

trouble."4

ago.

Small

receipts and higher prices for

wholesale cuts of

some

ward
were

Cotton

buying

of cotton this

season

the week, but prices did not
current consumption, the domestic

during

Based

was

This

Birthday

Washington's

sales

promotions,

con¬

The

and

trade

volume

2% to 6% higher than
able

1956 levels

East

South

retail

the

trade

pre¬

past

week

Middle Atlantic

was

the

and

+10; East

+6 to

+7; West North Central and Mountain —4
to 0; South Atlantic 0 to +4; West South Central —2 to +2 and
Pacific Coast +2 to +6%.
+3 to

volume

wholesale

orders

was

store

the

sales

index

for

basis

ortization,

ed.

For

recorded.

was

gain of 3%

was

the

period

Jan.

1957

easily

the

remarks.

week

eralized

ended

Feb.

23, 1957, increased 3% from the like period last year. In
preceding week, Feb. 16, 1957, an increase of 7% was report¬
For the four weeks ended Feb. 23, 1957, an increase of 5%
to

Feb.

23,

1957,

registered above that of 1956.

weather

Bad

declined

the

near

retail

trade

volume,

below

the

last

and,

year

week
as

ago

had

retarding

consequence,

level,

trade

sales

observers

report.

ment

store

Feb. 23,

the

Federal

Reserve

Board's index, depart¬
sales in New York City for the weekly period ended

According

increase of 14% above the like period of
last year. In the preceding week Feb. 16, 1957. an increase of 13%
was reported.
For the four weeks ending Feb. 23, 1957, an in¬
crease of
8% was registered.
For the period of Jan. 1, 1957 to
Feb.* 23, 1957, the index recorded a rise of 6% above that of
the corresponding period in 1956.
1957, showed

cases.

business

con-

the depre-

than

including

truck,

capitalization,

this

were

cate-

for 1956 the figure is 17.4%,

gory;

estimates

additional

additionally
per
billion
expenditure.

needed

dollars

that

of road

Like most people, I find it hard

what

imagine

$50 billion

lesser.

compa-

volume

truck

financing,

fo%

the

total

o£

volume

automotive credit extended. Virtu-

any all of the funds of the larger
sales
finance
companies go
to
automotive financing, so there is
little

question

allocation

be-

tween uses. With the funds avail-

able, sales finance companies seek

sound automotive outlets.

Tight

affects price as well asterms, let alone $90 availability, and the cost of money
bim
th0 probable ultimate road has risen.
expendftUre.
To
concretize
the
Some economists now believe
figure
something
we
can
all that the tightest of the tight
visuaifze ijke the Panama Canal money period may be over, with
Qr TVA
maybe compared to the perhaps one more twist at tax-

constructjon program really means
^

ft must be recognized that

ldeS)
fhe

ease

The significant though it is, is less than

rise Gf about two-thirds.

American Road Builders'Associa-

money

concrete

time in the early Spring. However,
while the availability of funds is
likely

increase

capital-

expenditure stops shooting up and
instead plateaus, it is doubtful
that the price of money—the interest rate—will recede to the low
Ohviouslv the financing of conlevels of a few years ago, although
ti
y other heavy trucks.it: may recede somewhat from
heavy
business
maPresent levels. The current tight
®st be tailorjust
Pinch has- 1 believe, ob-

specifications'

technical
these

for

giants are job_engineered by

mflm]£Pt,jrer
rlv

Par-

distributor

the

tach'credit
..

afea

heavv-truck

analysis is unique, and

rJule

•

^ured the fact that there is also
a long-term rise in money rates
at work> along with the rise in
wa£es and commodities. Owing to

Federal

the

Reserve's

Postwar

Manu-

b6oks

seen

Consequently
conclusion

might

integral

pal.t

'im-jp

1 ru.ck

Jold

through dealers or special
beavy truck distributors, and financed

f£e

directiy meet the

dealer

distributor, and the

*T '

heavv

Je™s2j°J

Z0/

L\uhi®b fl

°+0Ck

Fnr most

nke

£hi

quoted earlier.
truckers,

for

Mo-

which

very
ers

Normally
is

Daid

between

down

panel
25%
cash

trade-in, with balances on new
nmning 24 to 36 months,
there are no national data

sound suggestions. If truckand

which

and

jhsWBrfd.^:
Motor

■*

Associates,

ftqSVn. .t.

Bulletin of

August

available, those data
revealed that about

were

months
less, 20% in 30 months or less,

"0% were financed in 24

„

Credit'

Carrier Loan^"

Morris

terms

the

1952.

or
and
.

10%
:n

in 36 months. Like cars

vjf,TV

f)f

increasinsi

/bid.

5 ibid.

At the projected rate of growth
one

lruck Production, from about
million units in 1957 to 1.3 (or

L48 if exports are included) by

prices and other factors

a prorise in credit needs
be projected. Without laborin8 the details' ? 13 clf.ar that th+e
growth of truck credit presents
real financing problem. The
assets of financial institutions wiU
£row at least ln proportion, and
the votume of ^^lnancl"g TU

portionate

large**
arc not unMost trucks
and

while

lair,

take this guide seriously,

Robert

the use

unils

offers

eminently

„n

for

ith

doubtful that the ratio would be

significantiy iarger.

deorecTat on Schedule (he half-trillion G.N.P

c°aTegory iairSgM

.,3%

nd
ar

institutions
the needs of that
growth As noted earlier, about
10% ol sales finance automotive
credit goes to trucks. Bank figures
fnot similarly available, but it
mind that

the

irnclfs excludin^

unUs Ss
autoZbile te^s

models

and

things, explains the operations of
financial institutions to truckers.

gand'

equipment

struction

It is by truckers
among
other

whkh of course

nnt

for-hire

Association's "Financing the

Industry,"

trucks tend to

"Uantu^tier/odeoending uZn

preparing this paper, I read
carefully the American Trucking
Carrier

.....

can

user

would probably

institution

financial

;vvhich

special needs of the manufacturer,

gen-

any

of funds for the future growth of
'he truck industry is the second
the marketing question on which I would like to
iob-engineered
comment. Theie is no doubt in my

and
disfributors consider financing an
manufacturers

truck

Thu

am-

other factors, can
in the foregoing

and

tempted to draw
be misleading.

tor

influence

management,

taken

value

ciated

country-wide

Board's

Reserve

Federal

individual

fit

reiatedness

siderations other

both that of the previous week and a year ago.

Department

savs

is precisely individual

tailoring

orders for housewares, furniture, and Spring apparel
noticeably the past week, wholesalers reported declines
in the buying of most textiles, major appliances and food prod¬

dollar

the

companies^ the irae

equipment,

new

distinguishing charucteristic
financing, particularly
the for-hire and construction

'ine

While

total

truck

businesses,

climbed

The

it is desirable

cost

the

credit-granting take a good deal
of detailed analysis, and must be
tailored to fit each case.
Indeed,

according to estimates by Dun
estimates varied from the compar¬

-}-l to +5;

sunDlv—in this?

money

;

by the following percentages: New England

Central

of the

case

I6'00,0 P°unds ai;d sales finance

•

co-rn-

bond-support policy, this trend
facturers and financial institutions was largely suppressed until 1952
with maturities set so that rehave developed, and .are continu- but as ls "sVal w,th suppressed
payment is more rapid than de.
to develoPi joint arrangements
symptoms, it is now making up for
preclation."
t0 <]eai with the special problems
">?t time.
Obviously,
these
criteria
of inh.rpnl in heavv truck sales
The question of the availability
of

ago.

that

scores,

writer,5 "to extend about 75%

one

year ago,

Regional

Inc.

Bradstreet,

year

moderate year-to-year gains occurred.

dollar

total

slightly higher than

was

the

these

satisfied

lender

Once

period

equalled those of

retail

vious week

the

sales

and
Total

the

A ° sf.arce

The

implies

alternatives

already been seen. In forces are at work, but to
1954, about 10.7% of all trucks extent. For sales finance

cur-

outstanding.

loans

other

tion

their

increased

one-to-one

and

working capital, a
earnings record, approlicensing, and considera-

pnate

buying of Spring apparel, furniture and
ended on Wednesday of last week.
Automobile dealers reported increased volume in new passenger
sumers

kitchen wares

from

production

manufactured

adequate

Washington's Birthday Sales Promotions
Attracted

ucts.

heavy trucks.

allocation

amone

over—can

We need not dwell on other spe-

proven

Trade Volume Stimulated the Past Week

North

cific considerations which include

with

compares

9,200,000 bales last season.

step-up

servance.

estimated at 8,700,000 bales by the

Cotton Exchange Service Bureau..

New York

cars

very

program,

pressivd to realize that 50 Panama
rent ratio is used.
Like all rules
canals,'or about IV2 TVA's could
of thumb, these are honored in
be built for $50 billion we plan
the breach
as
often as the ob- 'to
spend initially on roads.

hogs

lagged

change appreciably.

there is no

However,

ratio

worth

the week before, exerting up¬
pressure on hog prices^
While receipts of lambs at Chicago
the largest in several weeks, prices remained firm.
trading in

stimulated

pork

use

»»-"*■■■■

•

cause

nave oeen granted

„etin„

involves

capi-

quickly

under

granted

The
heavy

road

generally accepted relation be- *road program. If these giants were
tweeii assets, debt, and worth. As
built today> in 1956 dollars, at cura
rule of thumb, a 75 /0 debt-to- rent construction
costs, it is im-

tons, 12% higher than in the previous week and 5% higher than
»-<

adequate

could

which

financings

been

have

wolJid

instances!

been

chofce

losses

opeiatmg

absence

talization

surely

have

and

nJf;
out

period

the

befween one use anc[ another,

ij
•\
of demal

the

ev1a. ?a 01ns

mciustiy,

normal circumstances.

rapid; expansion, is characteristieally undercapitalized.
.
.
.

Sugar sales in the week ended Feb. 16, amounted to 146,185

•»—

tne

for<?ed banks to make allocations

word

were

raw sugar

*eas°"ed

L-apiiai

(Z)

trading two weeks

sugar

weeks.

several

year

any

verv

Federal

comment,

llflJore

22,500 vehicles of all types—about
baft 0f which are over three ton
or
miscellaneous trucks—will be

compared with 52.2 cents in 1955.

The

immediately affected by

conclusion, on two rather broad.
but related topics. First, the effect
°f
pi°Pey1S' ?711c?ursf'
another topic worthy ol full treatment. But two factors are readily
apparent. To the extent that the
lion-availability of funds have

yculaily important in inatit win
most

fton

The average import price per pound for coffee was 51.2 cents

the

Broader Aspects

would

imnortant in that it will

whether bank oi finance
wants is to repossess
equipment on the basis of the lien
normally taken. Obviously man aSerial ability varies, and this is
why
credit
always has to be

green

report

the

slow

was

compared

pounds,

of the

total

ticuiariv

anap

thing

the

company,

change in prices.

last

this sector is par-

market,

^credit out oi a well-planned
3
The
very

11%

lender,

stantial.

CJ[

iust

constitutes just ii /o oi tne totai
truck

m
M.mnn'o.'vinid
cnnpifiooiiv
(1) Management
P'
C y
prefe ence
to
co a
a
weak management
can make a

the

48,226 sacks of flour received at New York railroad terminals on
Thursday of the week before, 28,341 sacks were for export, the
remainder

c^onsiiuciion iiucKing is tne lusi

ufUTr„rSea teW 111 the °rder trucks

domestic and

Road

and

Construction trucking is the last

mnstitutes

tool
tool

have
nave

Trucking

category to be analyzed. While it

small business.

any

a r t i P 1 e s
articles

that

Program

trnrk

himinP«
Dusiness

capital, the going
paid. In view of
like
this,
it
would
understanding is well

Construction

anv
any

in maturity.

return; there-

must

„

available, terms are well defined
t°°> ranging from 18 to 24 months

obtain

the way.

cri-

the
for

seem

fi-

the

its best

seeks

statements

peared in banking or other financial periodicals attempting to set
standards for lending of this type.

sluggish the week before,
foreign buying, the DeptartAgriculture continued to purchase substantial quantities

slowness

annlipd

for
101

Periodirallv
peilocucaiiy

Although flour trading remained
with

industry,

purchased by

to offer in the domestic market.

corn

fi-

the

automotive

one

Evaluation
evaluation

that the CCC would have less

mean

but

prpdit

for
u

exporters.
This

actual

purchases will resemble the credit

corn.

grades

needs,

stressed that

small-business

shift in CCC selling

should

long-term

ther, it notes that capital is fluid

nancing problems to be faced.
It will be apparent that since
for-hire trucking is essentially a

about 44,000,000 bushels

for

price

very

the

three-fold,

nearly

be ironed

can

justification in
credit
is
totally without foundation." Fur-

equity financ-

Southwest resulted in

condition

itself

and among larger
understandable ten-

Corn

ing

last wrinkles
quickly.
For

cial

tendency

some

increased

portion financed in 31
to 36
months increased over eight-fold,
At the other extreme, the propor-

lion requiring less than 24 months
had fallen.
example, the
Since the used truck market is
A.T.A. pamphlet points out that well
defined, with prices and
"to assume an unbalanced finan- depreciation
schedules
readily
out

very

dency to resort to

in the

range

narrow

in parts of the

institutions

30 months had

25 to

their financing needs, I think the

merger,

units

25.

continue to
move, as I know they have been
moving, to meet the truckers in

financial

financed in

trucks

of new

the percent

1956,

Challenge and Potential Truck Growth

needs.

ago.

prices fluctuated mildly within

years,

trucking states, "So far, the
industry has to a major extent
expanded
internally.
Earnings
have been plowed back into the
properties year after year." 2 As
the market for this type of trucking expands, so does the amount
of financing needed, not only for
equipment, but for terminal facilities, maintenance, and other

level.

Wholesale

terms
have
tended
tcM
lengthen.
From
1953
through.

page

pound

per

foodstuffs and meats in general use and its chief func¬

raw

from

of 2.7%.

Commodities quoted higher the past week were steers, hogs,

(1133)

truck

may

present no greatei shaie
inde£d a^t}ve fredit extendi
by financial institutions tnan ai

present.
Truck manufacturers and users
may

lest assured that financ a

institutions

can

in recent their end in the

and

will

carry

growth ahead.

(1134)

The Commercial and Financial Chronicle

Continued from first page

crease

And the
have been running

season

below sales of last year;

Freight
been

loadings, which had

car

expected

shippers

ad¬

visory boards to be greater in the
first

quarter of

first

quarter

consistently
a

than in the

1957

have

1956,

running

well

been

below

There has been
the

rate

the

for seasonal

factors) was slightly
December;
Total
private construction
in

seasonal

factors)

for any
The

seasonal

loans

the

was

month in

over

weekly

1957,

business

The

two

business

about

(1)

are:

questions

the

state

what

the

are

the

prevailing lull in
business; and (2) will the current
be followed
by contraction
or expansion?
causes

lull

The

lull

may

ascribed
a

to two basic causes: (1)
drop in the rate at which busi¬

enterprises

ness

accumulat¬

were

ing inventories; and (2) a decision
by many enterprises to conserve
cash

order

finance

large
plant

programs of expenditures on
and

equipment. These two causes
inter-related but independent.

are

The decision to reduce the rate
at

which

inventories,

accumulated
in

the

bility.
true,

was

interest

Total

relation
latter

economic

sta¬

it
large

unduly

ting

months

larger in relation to sales
than they had been a year before.
But

accumulation

had

the

been

rate of

last

going
This

the

rate

1956

inventories

annual

$4.4 billion outside of ag¬

riculture.
above

quarter
on

normal

about
rate.

inventory

50%

early

reduction

inventories

There

was

facturers'

the

inventories

building
desirable.

was

increase

manu¬

Decem¬

ber and only a negligible increase
in

January.

down

the

The

rate

cumulation

decision

cut

inventory
undoubtedly

committed

plant

the

in¬

the additional fact that

natural than for them

the

rate

being

The decision
of

inventory

.first

drop
have

new

accumulated?

reduce the rate

fairly

orders

December,

pointed

out,

January.

The

manufac¬

there

drop
in

small

production
number
of

drop

January.

men

agriculture

does

I
no

orders

was

new

orders in December

was

large

1956.

rise in manufacturers'
in

inven-

accumulation

reflected

turers

which

principal

November and December.
related

new

followed

industrial

The

work

not

have been

total

outside
seem

affected, but there was
fairly sharp drop between De¬
and
January
in
the
weekly hours worked in manu¬
a

cember

decision

the

rea¬

Closely

corpo¬

rations to conserve cash has

the

been

postponement of

ects

a few proj¬
prominent * com¬

some

panies.

These postponements, of
have not prevented total
private
construction
contract awards in January irom
course,

industrial

running 4% above January, 1956.
in

After the

Lull
Or

prelude to

Yvliat—Contraction

this I lull

lead

high

penditures
ment

cutting down
of

programs

delay

in business

gradually

of
ex¬

plant and equip¬
in starting new

projects as present ones are
pleted so that total outlays
drop?

expenditures

com¬

will

investment

drop,

feed

will the eonitself, producing

drops in employment, personal in¬
comes,
retail
sales, and
before

long

attempts

reduce

inven¬

fear

has

been

that the economy may

expressed
be building

up
an
excessive
inventory
plant and equipment and that

encounter

soon

general

estimates

Hill

Company

show

since

These

economy

capacity

McGraw-

51%

in¬

capacity

fears

that

the

developing excessive

not

grounded.

Hill

the

manufacturing

1950.

be¬

over-capacity.

The

crease

of
we

trouble

index

McGraw-

factory

the

appear

The

capacity
increase—

real

possibly
because
the
McGrawHill sample is based too much upon
the returns from large plants in

rapidly expanding industries.
Certainly, the industries of the
country

ing

fairly

1956

whole

because

labor

the

supply

were

the

produc¬

capacity

entire

available

The

was

being pretty completely used. But
the
1956
The

index

was

only

index

factory

31%

output

above

factory

1950.

output

has

its defects—the system of
weight¬
gives it a downward bias—

ing

but it is not

understates
1950
6

and

likely that the index
the

1956

percentage

must

increase

points.

conclude

that

between

Hence,
the

real

operating
only

the
about

about

9.2%,

Capacity

the

private output of the

one
in¬

problems of residential

construction, hut in January resi¬
contract awards were 1%

dential
in

dollar

volume

than

record made in the

closing months

lull

The

1956.

reduce

business will

demand for

lull

housing. Furthermore,
if it persists for

itself,

months, will lead

ernment

acf

period,

per¬

consumer

sonal

alter

taxes

rose

lion,

168.1

bil¬

Population

in¬

159.7 million in

1953

14.5%.

creased from

$286.6

million in 1956, or 5.3%.
private output per capita

Hence,

increased

from

will

creases

Rather,

that

three

is
productive

country

much

too

dicate

last

the

figures in¬
economy
in the
has not done a

the
years

have

of the

been

contracts
1955
1958

Statistics

workers

better

the

lull

will

pansion

the

for

support

provide
view that

followed

rather

ex¬

than

by contrac¬
tion. To begin with, there is every
reason
to
expect business to be
well-sustained

during
the
lull.
The high rate of expenditures on
plant and equipment will be well-

195324

sustained

because

these

outlays

This

awards

January

pointed out,

1956. Furthermore,

ary,

have

4% above Janu¬

were

new

cor¬

porate securities to finance outlays
plant and equipment are being

jssuea

rate

nigu

rate

1956,

the

last

decumulation

general

that.

the

inven¬

quarter

the

The

the

caused

the

too low
parts of

sufficient

are

drop

are

expanding

economy

offset

time

present

likely—inventories

for

if the

iwen

rate,

accumulation

drops from the moderately

outlook

wages,
incomes
even

possible

adding
in

small

declines

why

come

rise

followed

em¬

casters

outlays

equipment,
technology
tendency

tinue

and

the
In

main
the

the

will

second

housing
begin rising
on

latter half of the

by
first

expenditures

services

rise. In

expected

long-term

government

expenditures

and

progress

expenditures
expansion will be

about

goods

these

influences.

place,

for

of
not

plant

creates

for

brought

period

expansion?

probably

though

to increase. The

three

year.

con¬

place,

may

people

by the
There is a

The

actual

1950

terms

stated

index

with

the

factory
1956.

table

horizontal

looks

into

con-

compares

the

manufacturing

either
slow

month-to-month

sibly

will

pattern

changes

slow

very

pos¬

rise.

But

the

moderately slow expansion.

Industrial

difficulty'" of

briefly

are

than

summarizing

1,800

million

then

,1,000
9

rise

the

average

cents

com¬

other fields

and

1955.

The rattier large increase

hourly

earnings

curred in

1956

oc¬

the face of

virtually no
gain in physical productivity. In¬
deed, output per worker per year
in

1956

virtually

was

than in 1955.
the

face

greater

The rise of wages in

stationary output

per

manhour put strong upward
pres¬
sure

the

prices. Hence, in spite of
policy of credit restraint im¬
on

posed by the monetary authorities,
consumer
prices rose by nearly
between
December,
1955,
December,
1956,
and
the
wholesale prices of products other
and

about

lost

all.

through

half of their gain in money wages
between December, 1955, and De¬

cember, 1956.

In spite of t

that

wages

money

workers

the

1956;

prospects

briefly

less

trends
and '- the
!

1957

the

ad¬

examination

negotiations

the

contract

1956

year

following principal de¬
velopments: (1)! rather large wage
increases; (2) some tendency to
away

cents per

from

uniform

flat

hour increases; (3) little

regular working hours

week: (4) a*somewhat limited
of

Differentials
The growing scarcity of skilled
workers and their increasing dis¬
satisfaction

agreements

the

111

groups.

120

the

differentials

their wages and those of
skilled workers has led to a

less

movement

various

flat

increases

wage

arrangements

for

cents

and

for

workers.

wage

differential

and

slow

last

have

three

narrowing

The

unskilled

seem

the

doing

skilled

not

the

from

away

hour

per

be¬

jobs

increased

but

years,

this

dif¬

negotiations

time
It

rates

looks

sufficient

popular

the

shift

rates

are

make

than

overtime quite

most

workers.

hand, it looks
are

rates

already too high,

are

over¬

differentials.

overtime

with

the other

increase

and

if shift

still too low, since

differentials

are
not
large
enough to equalize the attractive¬

ness

great

the

several

majority

shifts.

The

still

workers

at a higher rate.
One of the most
important wage changes in 1956

institution

the

was

for Sunday work

premium

such

the steel

industry—time and

one-

fifth

the

time

for

and

first

one-fourth

year

and

thereafter.

This

precedent that will have far-

reaching long-term effects.
Little

length

For

some

shown

done in 1956 to

was

the

t.:e

years

little

change
working week.

most unions have

interest

reducing

(5)

and, except in the railroad indus¬

tendency

of!- the

no breakdown
by the size of the em¬
About one-third of the

covering

about

two-fifths

workers

apply to multiple employer
These multiple employer agree¬

usually

aoply, to s*r>aM e nnl—TS
Thus, many of the agreements covering a
large number of employees apply only"
cr
mainly to small employers.
ments

with

between

compensation;

covered.

107

1955.

the

agreements

125

unem¬

Unfortunately, there is

117

than

supplementary

1
Monthly Labor Review, July, 1956,
I. ••

the

1956

the

Overtime Rates and Shift

pay

shows the

factory

1955,

of hourly earn¬
workers
gained

few impor¬ prefer the first shift at a lower
are not rate to the second or third shift

negotiation

contracts.

ployers

than

power

trepds that

ministration

considerably
in

purchasing
ings

factory

1956

fact

increased

each.2 differentials

spread

Factory^, workers
higher prices about

these

-—particularly

change

rose

4.3%.

plants

19$8;.and finally, let

current

move

the

hourly earnings was also
considerably greater in 1956 than

since

some

particularly related to 1956

in¬

building construction,

trade,"and

most

employees

first

look

consider

workers

million

developments

let

for 1957

Index of

131

was

and 1954. In

retail

1,700

workers.2

between

the'agreements cover

look

tant

covering

cover

principal

collective

about

5,000
Let

125,000

151

wage

pared with 7 cents in the previous
year, and 4
cents between 1.953

does

112

1956

during

in—effect,

About 300 of

125

out

large

rise

accurately develop¬ ferential
has
apparently
been
union-employer relations halted.4 There is a slow tendency

agreements

more,

805.

140

de¬

and

expressed

131

these

stands

rather

The

percentage
in

Relations in 1956
The

-100.

107

ers

tween

continuation

ICC

1956

year

IV
Develonments

years

100

some

hourly earnings of factory work-;

second half of the year will be a
period of greater expansion—not
rapid expansion^ but moderate or

fcr
is

upon

The

time,

present

The first part of
(possibly as much as the
first half)
will
be a period
of
horizontal movepnent with small

output

the

briefly

velopments.

different.

very

ployment

Manufacturing
Index of
Capacity
Factory Output

the

half

the year

index

McGraw-Hill

1950

expan¬

movement

the

-second

period

Reserve

index

half

that -the

and

the

forecasters

first

would be a?" period of

contraction.

'.beginning

of -these

Federal

Each

1950

the

busi¬

pattern

the

that

sion

per

following

Tear

1955

cities

demand for houses with

capacity
of

from

move

suburbs, of rising incomes, of
increasing size of families, and

the

good underlying demand for hous¬
ing—the result of a tendency for

the

Most

year.

these

great extent from

any

the

will

is suggested by the fact that there

Expansion

should

expansion

and

ments in

rapid

2.9%

ness
for
the
year
1957 will be
materially
different
from
that
quite generally ^predicted by fore¬

around

The

immediate

face

(7)

that

agreements

lull

contracts

new

business

for

ex¬

ployment.
Perceives

personal

the

agreements

three

than farm products and foods

rising

government expenditures and

rising

will"

These

"long-term"

running two

dicates

production
in
in¬

are

called

probable aftermath of the lull in¬

decrease

ventory accumulation.
pending
influences

the

analysis of the

would

contract

November.

and

replace the~ones expiring
^ "
-

Industrial

occur

increases

year

markets.

hour. Most

will

June, July,

largely reflect long-range plans of
enterprises and are based upon
in technology and shifts

progress

cents

increases

negotiated

facts

ih<$£ases in 1957.
,!ihfcrt*ase will
be

seven

Many

1957.

entered by

wage

average

May,

contract will receive

550

the

mainly

I^qreau of Labor

estimatejr;ihat about five

automatic

around

long-term

anc^unning until

1959. The,

than

jnto

negotiated

that

available

little

extent to which

built

1956

and

particularly good job of increasing
The

There

granted for 1957/These increases

productive

capacity.

per¬

increases haye already been

The

that

in¬

raise

tend' to

goods.

realization
wage

million

fears

days, to liberalize vacation plans,
plans, and sickness and

creases.

sonal incomes and the demand for

(in 1956
dollars) in 1953 to $2,239 in 1956,
or only 3.56%—a
very inadequate
increase for a three-year.-period
and certainly not one that sup¬
$2,162

in--

holi¬

paid

welfare plans: (6) a considerable
increase
in
the
number
of
so-

the period of

increase

'to

same

billion

pension

the gov¬

and 1956. In the

incomes

benefits—to

number

the

supplies of mortgage money.
In
the
third
place, wage

$250.2

fringe

the

years; and
tendency to incorpo¬
shortage of mortgage rate cost-of-living escalator clauses
money that has been limiting the in
contracts.
Let
me
comment

increased,
in
terms of 1956 dollars, from $345.3
billion in 1953 to $376.5 billion in
1956, or only 9% between 1953

from

ago—quite different from the

year

some

economy

3951

than

when

Surplus

total

entire

McGraw-Hill

country

output

the

Sees

But

tories?
Some

crease

manufacturing capacity rose more
than 20% in the same period.

real contraction? Will

present

fairly

1956,

was

inventories

Expansion?

liberalize

houses. There has been much talk
about

be¬

though the McGraw-Hill index of

high

Is the present lull

factory

was

capacity,

tories

were

even

total personal incomes,
adjustment
for
seasonal
factors, did not increase between

exaggerates

and

average

why

well

tries

1956

the

was

they faced
a
tight
money
market.
They
needed
money
to pay for new
plant and equipment. What would
reduce

monthly

This

cause

large expenditures
equipment and by

and

month

any

ac¬

fluenced in part in many instances
by
the
fact
that
firms
were
for

dropped

in December well below the level

may

was

disbursements

traction

Such

accumulation

could not go on for many months
without causing trouble, and an
up

expenditures

year-end
dividends.
result, the annual rate of

dividend

little

the

for

extra

fact, in the
1956 they were

economy

plant and equipment by omit¬

sales—in

that

corporations to

many

cash

conserve

and

one

inventories,

not

were

decision

being

were

wise

after

business

was
operating
capacity,
and

getting

has brought about the lull was the

son

In Business

basic

second

1953, when the economy

capacity.

1955.
Causes of the Present Lull

Contract

Awards

below

The

Industrial

decision

principal

arise

Rise

riod of last year.

which

car

quarter

veniences not found in most older

prob¬

was

ports

loadings in the first
1957 over the lirst
of 1956.

quarter

January and February,
in the corresponding pe¬

crease

reporting

member banks was about twice

large

had

for

year;

drop

the

below the levels of a year
The shippers advisory boards
been predicting a small in¬

ago.

lowest

unexpected drop in car load¬

ings

below

adjustment

manifested

more-than-seasonal

ary—about twice as large as the
drop in January, 1956 — and by

The index of industrial produc¬
tion in January (after adjustment

(after

been

has

„

the

in¬

reduce

drop in business loans of weekly
reporting member banks in Janu¬

January;

January

decision

also

wholesale

since about the middle of

creases

The

ventories

slackening in
price in¬

Wage Outlook

ber.

year ago;

increase

than

between

facturing, and a drop of almost
2% in weekly take-home pay of
factory workers. In the light of
these conditions,
it is not sur¬
prising that retail sales in Janu¬
ary, after adjustment for seasonal
influences, showed no gain over
the high rate of sales in Decem¬

slightly

not

The

Current Business Trends

1956

and

ably

Thursday, March 7, 1957

37%.1

capacity

factory

1950

tween

length

there

try,

changes

the

have

working
been

the
working
industry for 15

in American

week

large
week
years.

The indifference of unions to this
issue

seems

result

the

continuously high employment.
Supplementary
unemployment
4 U. S.

Bureau

cupational
teen

Labor

Wage

of Labor

Statistics, "Oc¬
Relationships in Seven¬
Monthly LuLchr Re¬

Markets."

view, December,

i956,

1419.

Volume

Number

185

5618

compensation plans, which caused
such

furor in

ing rather
slowly

1955,

slowly

than

much

—

one

other

most

out of a sample of 313 contracts
in 1948, 24.6% were for more than

spread-

are

fringe

and

dustry
1956.

the

Most

total

amount paid

under the

out in benefits

in the autoindustry where the benefits became payable in the prinplans,

even

mobile

aijuv

companies. A unique supplemental
unemployment benefit plan was
negotiated by the Federation of
Grain Millers in the Harper Flour
Mills,

u°m

depending

c£

several

cllucl

v.v/lltlclv<tl

tllv-

the

v'jiaijiuili

^^ods of
Jhecktee drop of labor
J° Periods of contiaction.
S ,nf
111

Whea negotiations come

tracts*

LntrnmniJ
rather steady employ-

■

completed, than each

r* /\ v»n

formation

whether

nr r»

.-'t v>

enable

l-> /% n r"*

•

■

•'

•»

the: in-

than

1956

income

w-th

.—

•

—

—. _

1953
Uge

ing
the

and more important characteristic

were

The

years,

Spread

long-term

going

was

yegr

Qf considerable ten-

were

con-

present

accompanied by a
great increase in escalator clauses

number)

by such clauses

not

their

m even in

manage¬

carefully

probable consequences.
heard

even

managements

Union-

Management Contracts

likely

are

union.

give

attention to the probable
consequences
of seniority rules
has been the development of ex¬
ceedingly expensive bumping
practices in some plants, and in
some
cases
loss of flexibility in
the

this

made

failure

proper

important than the settle¬

year or

result

The

ments that were made last year or

that

the

would be satisfactory to

the face of declining

have

with
very

out

looking

say

with

contracts

Administration

b,1f9riess without impairing their

their

into

Progress in the Negotiation and

^r9nf> companies which can pay

about 2 million* at the begin-'

was

nine of 1957. the escalator clauses

As everyone

that they would be willing to
'^e relative quiet of 1957 to taken'li
any A seniority A. rules
that
*
t*
A
IA 1
*

zation

automati¬

will

work¬

rules.

worked

ment

employers would be wise to

our economy.
The day is prob¬ unions.
ably not far distant when at least!
10
million
workers
(twice
the'

tracts has been

workers covered

spread of-pension plans to

companies, which

developing

subject, and seniority rules some¬
times produce unexpected effects.
Furthermore, some seniority rules

Spread of Escalator Clauses

The
lew

strikes

wildcat

knows, seniority is a complicated

improve their personnel practices
and also to improve the adminis-

mute ranidly becoming a more

P1™1" numoer; win auiomauthe movement toward increascaMy receive wage mci eases each
the number of holidays and fYed "to"tlieConsumer^ pdee index" -yearInsofar as these built-in
length of vacations went on jn January. 1955 the" number of wage *ncrease8 abe confined to

but

enterprises

frequent and management lacked
a definite policy for dealing with

the majority of the members, but
At is a demand that must be made
and Pressed in order to keep the
skilled workers in the union.

af long-term cont racts and which

attention that it de-

• serves.8'

provisions governing holidays, and
vacations went on more rapidly
in

about tbd built-in wage increases
which are an inseparable feature
il 1
2-«
j.
j
.1_ •
1_

♦ ■

•

and

to-say
liberalization of

not

have

not

Progress in Five Areas

(1) Company policies for deal¬
ing with wildcat strikes. In many

A special word should be said sion and strain in prospect in

nnd

in paid holidays and the next negotiation. Neither side
vacation plans.
Agreements con- has nro^er opportunity to «nve
1
'
tinued to be liberalized in these; administration of the contract the
/4

be* The United AutomobileWork-

frs *ias announced that it ihr^nds
0
a blS lssa® ot a. shortei.
wo,
w4uunion may

sever^ dhanges

,tb

con-

side must begin to get ready for

in that year will
greater than in 1957. It is too
eai*ly to speculate at any length
FonS^rnlT^£
the issuer will
creases

structure

able seniority

riieni 3as_AIK?eas5d u-JL*":
t

the economy

the

made

of employees
t-i *

with,

wages

e.very year,* "° s00ner have neg°tiations been

respects.

begin

panies to put short-run considerations of production ahead of their
long-run interest in good administration. The progress in administration has taken the following
be principal forms:

toe

rbthn

•4""i

structure and the wage

wage

policies of unions
To

produce tunity to prepare their cases, and
also better administration of

Increasing Holidays and Vacations

High and

industry, the aircraft industry,
^nd the farm equipment industry,
If business continues good through
1958 (and tbere are S°od reasons
to expect that it will), wage in-

years

interesting conclusions

concerning the effect of change in

wi-vll

(

Wi/ru

leads

recent

extension

>jhe

the number

upon

f
.f feed.
of fppH 5

ton

v/j.

jwV or

-hours »*/%« hi
reauired 4 /-k -«c-w m« /x
'ink
j to Droduce
/-.a

wages

of contracts-to' ,l,any agreements. And while un- More money for the skilled workyeaVs7uak7s"p°ossibie employment compensation does ers in the industry is certain to be
not add to pavrolls, it does help one ?* thii uniOH s principal deboth, better negotiations, because not, a,dd,t?..pa?fr0"g,..'t tuCS.
mands.
it gives"both sides a better"oDDOr- sustoin labor incomes.
Thus, the manaslnis aemana may
1
;
sldes a better opport
several «ls m
4 /-if l*/\ /"»4 f 4 h /\r»r\ n » t rv ti /\ 1 eharures arouse Sreat enthusiasm among
—

Inc., of Buffalo. It made
contributions to a trust

company

rolls

opments of the last two years has—These same changes also
payrolls of the* been the conversion of nominal tend to make payrolls decrease

the

306
one

administration of trade agreements and caused many com¬

not do this.^So iohg as employ.- them. In particular,, many man,
ni^nt is high, tne rank and me agements were afraid to impose
interest in a shorter work week discipline for such strikes. Wildlong-term contracts into real long- more rapidly in periods of con- ?J?pears, to be qulte AuKevvari?; cat strikes have not been elimiterm contracts by substituting au- traction, but this effect is offset Heace> 1may concenua4c nated as a problem, but enormous
torr.atic wage increases for wage; by the automatic annual wage in- f*1 d.emancls that arouse more en-, progress has .been made.
re-opening clauses. 9crcases that are a feature of so thusiasm among the rank and file.
(2) Moderate progress has been

cipal companies on the first of
June, 1956, have been quite small
in relation

portant negotiations in the glass

is being changed in ways
provide for automatic wage in- that increase the rate at which
creases, and many of them provide
payrolls rise in periods of boom.
that wages or other items may be This is being done in three prinre-opened for negotiation during cipal ways—the increase in over-;
the life of the contract either with
tone premium j.u ww). the aiivi. vuwv>
rates,
increase.
or without the right to strike. But
in shift premium rates, and the
one of. the most important deyplspread of cost-of-living escalator

The

plans.

of the changes

examination

than

Most of the long-term contracts

little

show

unions

interest in these

industry

rubber

46.4%

tor more

1956, 56.0% of 923
contracts were for more than one
year.? Very few contracts run for
more than three years.

The

plans spread to the
industry, the aluminum in-

steel

1950,

were

The year 1958 will also see im-

New Cyclical Wage Pattern
An

and in

year;

plans covered only about 2 million
workers.

year;

contiacts

At the end of 1956 these

benefits.

35]

(1135)

The Commercial arid Pinancial Chronicle

next are developments in

Once seniority

working force.

rights are established by any rule,
whether a good rule or a bad rule,
these
rights
are
difficult
to
change.
The process of improv¬
ing seniority rules has been a
slow and painful one and much
still remains to be done.

recently
about 23,000

pension plans qualiTreasury

uiivAt;r

iK.u

f<Wtax consideration.

These plans

—

___

covered

14 million workers,

only

roughly

little

regulations

than

one

out of three

employees in private

industry.

non-agricultural

Some

powerful unions (the Teamsters,
for example) are spreading sup¬

been

adopted

the steel indus¬

are

try,

the aluminum industry, the
trucking industry, the meat packjopr indnstrv, an^ the agreements

of the non-onerating railroad
ions

and

un-

'the operating

some

unions.

In recent months wage

plementary pension plans to small
employers, but from now on the
increase in the employees covered

have

supplementary pension plans
will probably be slower than in
the past. A large number of small
employers cannot meet the accrued liability imposed by a pen¬

workers

sion

increases
per hour
many thou¬

been:

plan.

The

of liberalizing ex¬
plans continues at

process

pension

isting

rapid

fairly

Pensions

rate.

are

eligibility
re¬
quirements
are
being
lowered,
protection is being broadened to
include permanent disability un¬
der

vesting

introduced.
Thus, in the
steel
industry last year vesting
was negotiated for employees who
have reached the age of 40, have
being

seniority,

years

off.

laid

are

welfare

and

than

pension

private

Contracts

most

the

1948)

since

important de¬

has

been

the

negotiation of long-term contracts
—contracts running two, three, or
even

five

A study

years.

Bureau

by the

Statistics

Labor

1,737 agreements covering more

than
total
that

employees each and a
of 8,932,800 workers, showed
930 agreements covering 5,1.000

for two
years or more and 301 agreements
covering 2,208,500 employees were
for
three
years
or
more.6
The
growth of long-term agreements
is
shown
by several studies of
011,000

employees

Board.

These

studies

Labor
Monthly
1956,
p.
1073.

show

t.iat

6 Monthlv
pp.

Labor

September,

Review,
Review,

July,

and

1,250,000 in
farm equip¬

and

industries

—

the

thov will make it

imperative
take

the

that

vigorous

very

spread,

and

government
steps to halt

contraction in busi-

miinkly any
ness

for

outlook

The

other

1957

that

prices will rise

and

wa#es

1958

for 1957 and

Outlook

The

less
One

in 1956.

there

that

fewer

are

negotiations in which pow¬
erful pattern-setting unions will
be
pushing
through
wa^e
in¬
creases.
The
principal negotia¬

wage

tions in

1957 will be in the petro¬

December! 1956—1,500,000 work¬

dustry and some of the train serv¬

in the

ers

ment

automobile, farm equip¬

aircraft,

electrical

and

in¬

aluminum,

steel,

workers

1957—900,000

January,

aircraft,

and

February,
xeoruary, 1957—1,000,000 worKi,uuu,uuu work-

trucking and electrical

ers in ^be
"

•

industries.
The

spread of escalator clauses

change in the think¬

many

years

iiivi

unions,

Perhaps

in the Pacific
These negotia¬
fairly large

and

shipyards.
set

may

some

increases. Other important
negotiations in 1957 in the men's
apparel industry, the textile in¬
dustry, and the telephone industry

wage

Droduce lar^e in-

observation

the

escalator

about

opinions

.June,

Record,

7 Management

1956,

20S.
8

Opposition

ward

longer-term

Guad.

the

voiced
thf

the

in
to

two

contracts

Newwa^c*

American

z3rd

its

maximum

fracts

trend to¬
has
been

strong

conventi/

duration
years

except

than

increases

wage

given

were

A second reason f >r
expecting a slower rise in wages
and prices is the current lull in
business
which
will
affect
the
last

year.

„

total changes for the a slowerthird
year. A rise
reason for expecting

length

1956,
p.

should

toward

Monthly
I .ubor
I9S6, p. 1073.

one

year

Review,

Monthly Labor Review, January, 1957,

52.

remains to be made, but
developments of the last several
years have been considerable and
encouraging.
My impression
is
that
greater progress has been
made in improving administrative
practices than negotiating meth¬
progress

ods.

few companies

have been

over-all and critical look
at their policies and have been
asking themselves whether they

taking

they have been allowing the initi¬
ative in labor matters to be taken

pretty completely by the unions
The principal improvement in
negotiating
methods
has
l^dfn
more thorough preparation for ne¬

loose

replacement

The

(3)

Much

production standards with proper
in some cases, the

standards and,

replacement of submerged incen¬
tive rates with good
rates.
The
war

was

for the de¬
loose stand¬
practices in admin*

responsible
of

velopment

many

ards and loose

incentive

ifctering standards and

these
long

systems. In many plants
loose
practices
continued

after the war. In the course of
time, however, loose standards are
bound

impair

competitive

the

of the company. Many
concerns, therefore, have been led
to
take
steps to improve
their
standard-setting processes and also
position

improve their standards. Tech¬
nological change has helped them
in this because these changes have

gotiations. Both unions and em¬ given an opportunity to set new
ployers are doing more and more standards. In a few extreme cases,
advance work in preparing their
however, it has been necessary
cases.
Employers usually know in to transfer work to new plants.
advance what the principal union
(4) Improvements in the
demands will be, and more and
methods of handling
grievances.
more they gather facts and make
In
the
early days of collective
investigations in support of the
company's position. An increasing bargaining, in many plants everyone
was
too busy to give much
,

...

number of companies build up_ a

clause-by clause file on how the
expiring
agreement
has
been
working and hold management
conferences
on
changes
that

administer¬

thought to methods of

ing grievances. Furthermore, man¬

too inexperienced with
bargaining to realize

agers were

collective

these

than

Managements are
aware
of
the poor productivity
record of 1957, they are disturbed
about it, and they will try hard to
do something about it.
I believe

conferences,

the man-

the importance of good admi

changes that grievance
administration m a y
to see^ A have far-reaching effects on the
few companies see negotiations as efficiency of the organization beundermine
the
a
useful method of communicaA cause
it may
others

and

ents,

these

men

would

tion by which the employee

rep-j

1.1-

that

early

stages
from

tees

negotiation

con-

the union.

The

in administering
contracts has
considerable.
The

progress

union-management
been

quite

for such progress has been
ttiitrkni
ft vrtxir
i»r"\
co
r**"i n
Unionism grew up so rap¬
during the 30s and the war
that both companies and unions
alike did not have much time to

need

Higher Wages in

1958

could well be
the

1958? That
stormy year.
It is

when the contracts ex¬
pire in the automobile industry,
and
the union has always been
year

ambitious

pattern-setter.

give thought either to basic pol¬
icies or to problems of administra¬
tion.
Furthermore,
the
s.tron
pressure

the

war

for production created 1.
had bad effects upon the

Poor

foremen.

+on ^iionoA
to challe ge

actions/of management s

able

high

maintain

grievance

rate.

have

been

organizations

to/realize the importance of

slow

big backlog of griev¬
considerable progress
made and in plant after

avoiding

ances/ But
.

Heen

pvm

idly

What about the year

the/

Some

great.

they will succeed.

morale

resentatives learn much about the g"evan.ce a
Ja
company and the industry.
Such the union stewards
companies may prefer to have the quite freely even the

gained in 1956.

enn-

of the international execut've board, an 1
approved a motiun that the trend in con¬
agreements.

1957

limited

future

by pernUssio'i

prob

tration of grievances. This topic
The negotiations scheduled for
agement negotiators seek sugges- has many more ramifications than
1957 lead one to expect smaller
tions from foremen, superintend- I
have time to discuss. Poor

faster

clauses.

basic

would be desirable. In connection

creases.

srSgMfflK-SriS tsSSSSfsVS^A.
i#s&23S£.'ZSSi ess ss.'c'ss'gjr*
it
their

the

about

lems of industrial relations.

vvith

union officers. Sev¬
ago
many
leaders
thought that escalator clauses lim¬
ited the ability of the union to get
wage
increases for its members.
eral

ice

tions

dustries.

leum

Coast

thinking

really possess a well-thought-out
set of labor policies or whether

industry, the rubber indus¬
try, and between the railroad in¬

September,

810-811.

1,0,10 ,n bu*,ness hv

in¬

tract

machinery,

dustries.

were

the National Industrial Conference
_

has

500,000 workers

1956

automobile

ment.

ing of

velopments in recent year's (espe¬
cially

months

electrical

represents
One

—

credit standing of the weak firms.

escala-

under

recent

September,
the

■,

lions in business by impairing

six

trucking industries.

and

than they increased

aircraft,

plans, continues to be liberalized.
Long-Term

pumber of workers

August, 1956

insurance,

considerably

cover

workers

•

wage

increas9s wblcb apply to weak
companies may aggravateeontrac-

reason

built-in

But

contracting.

such

last

the

increases

clauses

Manv

two

meat packing industries.

Health
which
hich

who

and

clauses.

during
The'

cost-of-

under

received

have

receiving
*or

escalator

months.

a limited
gradually

circumstances,

some

amount

given

workers

increases

increased,

being

been

living

spending in periods when
production and emplovment are

As built-in wage increases

ranging from 1 to 4 cents
sands

tain

plaht

grievances

are

now

•

being

expeditiously
' an several years ago. Manageent
is better organized to inestigate complaints and to get
far

handled

the

facts.

ment

has

Furthermore,

manage¬

learned the importance

Continued

on page

The Commercial and Financial Chronicle

(1136)

Continued, jrom page

1953 and

went

and

there

And the
importance of
departing from the letter of the
agreement when it is necessary to
right and also the

to be fair.

this in order

Man¬

agements have learned the impor¬
tance of not settling grievances by

the

to stand

not

learned

have
weak
go

Managements

bargaining.

mere

to arbitration on cases in which
management position is diffi¬

cult to defend.

(5) Improvements in the admin¬
of discipline.
The new

militant

which

unions

grew

some

practices

over

policies in administration of

discipline before the

union

came

in went to the other extreme after

union

There

why fair

reasons

many

in.

came

are

but

firm

relations

period

regarded

out

views

the

Hence,
be

carefully

personnel

either
The initia¬

part

employers.

fashion

cannot

reflecting

tive ih introducing changes in the

agreements has usually
the

unions.

The

have

from

come

union

sometimes

sures

demands

reflected,

the

pres¬

workers

par¬

ticular

plants or particular
partments or the interests of

administration of discipline is im¬

tain

portant. In addition to the obvious

those

that rules must be observed

de¬
cer¬

other

reason

when people are working

groups

who

workers,

for

one

such

reason

as
an¬

are
particularly interested
pensions or paid holidays or

together
in
groups,
is the effect of Jax
administration of discipline upon
the moral position of the super¬

reflected

vision.

to match the conditions that other

Foremen who feel that they

have

been

deserted

higher

the

all

aspects

their work.

discussion

problems

several

importance: (1) the
training of more
skilled workers; (2) the need for
a
systematic review of industrial
need

for

the

relations practices and policies bv
both

employers and
the problem of

(3)
costs

the

and

caused

(1)

unions; and
rising labor
creeping inflation

by them.
The

workers.

The

skilled

foreseeable

tech¬

nological trends of American in¬
dustry indicate that the need for
skilled workers and also for tech¬

nical

personnel

than the labor
been

will

force—just

growing

faster

grow
as

it has

faster

much

than

have

The

skilled

growing

workers

need

m eans

American industry should

for
that

expand

substantially its plans for training
craftsmen

and

other

workers. Some skills

skilled

best

are

ac¬

quired by the process of upgrad ¬
ing—found in parts of the paper
industry, the steel industry, the
railroad

industry.

however,

Many

skills,

be mastered only by

can

formal apprenticeship which
gives
boys experience at various parts
of

the

trade

schooling
perience.
tered

and

some

The

shop

number

apprentices

States

vocational

with

(boys in

the

ex¬

regis¬
United

that meet

courses

rule,

keep

union

the

basis of

into

have

trade

that

Some

peace.

that

been

of
in¬

agreements

particularly well
either the union

the employer, and they may or

may not come quite close to meet¬
ing the needs .of the workers.
Certainly, in negotiating about
pension
plans,
sickness
benefit
plans, life insurance plans, both

the

union

management

dealing

with matters
they have had rather

about which

limited

the

and

been

understanding.

Even

negotiating about seniority rules,'
limited

very

been given

consideration

to the

has

broad

question
of what set of seniority rules con¬
stitutes

sound

personnel

policy

for the particular plant.

Perhaps
that

has

and

much

inevitable

shall

have

piecemeal fashion

influenced

by political

The

pressures.

ask

how

handiwork

well

agreements
of

protect

the

and

trade

advance

interests of the various kinds
workers

interests

workers

the

plant

the

—

short-service

distinguished
from
distinguished
women, exceptionally able
as

long-service,
from

workers
ers

how

and

equitably the terms of
the

men as

compared with, work¬

mediocre

1953

than
1953

and

profits

faster

June

30,
1941, to 155,800 on June 30, 1952,
and to 188,000 on
January, 1957.
Washington experts, however, re¬

gard

the

far

number

short

apprentices

the

needs

industry.
A

ability.

Such

unions

have

shown

considerable interest in
encourag¬
ing the training of more appren¬
tices.
Among these unions the

plumbers' union stands out. It has
recently negotiated
the

National

Association
one

cent

support

for

agreement

off-the-job

fund

school

will

negotiating.
a

management

two

years

training,

see

most

and

the

ap¬

creeping

dustrial

problem

current

relations

rising

labor

prospect of
wages to

rise faster than productivity. That
result is the inevitable result of

that

trends

the

costs

prices.- For

present balance of bargaining
between unions and em¬

ployers. Hence,

price

level

avoided.

But

declare

not

easily
disagree with the

eminent

many

slow rise in the

will

economists

who

that

a
creeping rise in
inevitably become a
galloping rise. If these economists
are right (and I am confident
they
are
not), a great collapse In the

prices

must

United

States

far

not

because in their view

away

soon

large number of people expect a
creeping rise in prices to continue,
their

efforts

very

themselves

from

against it

will

cause

protect

profit

to., become

wish

that

I could
suggest a
good practical method of limiting
the

increase

average

to the average

wages

money

increase in

productivity

per
manhour,
but
proposal that I have heard
presented is a greater evil than

the

one

that it is intended to

cure.

Hence, I fear that we shall prob¬
ably have to live for some time to
in

come

price

kind

world

time.

that

The

many

rising

would

most
com¬

this

bad

distinguished

have
be

the

that

not

very

There will

which

principal

offer

can

economists
lieve.

slowly

world

level

the

be¬

you

galloping
inflation, no runaway prices, no
frenzy of speculation, and no great
collapse. Rather, our world will be
in

one

which

markets

will

extremely

modest,

keen
a

and

world

will

fare

profits
which
rather

badly, in which the proportion of
the national product
going to the
stockholders will continue to
drop
slowly, and in which most of the

gains
will

of
be

increasing
the

productivity
employees.

some

time

wages have been rising faster than
the productivity of labor. Between

News

—$5

Stock Market News &

—

and

Comment"

Comment, Ltd., Securities Ad¬
visor, Dept.
E, 80 Richmond
St., West, Toronto, Ont., Canada.
Construction

1956

—

De¬

partment of Labor, Bureau ot
Labor Statistics, 341 Ninth Ave¬
New York 1, N. Y.—On

nue,

re¬

quest.
Corporate

Colorado Investment Co., Inc., 509
Street. He was pre¬

Debt

holder:

ing

The

the

and

Effects of

Stock¬

Borrow¬

Rates of Return

Louis

—

mouth

with

207

III

has

Smith,

become

the

and

Private—Report

Committee

Economic

Policy—Chamber of Commerce
the

United States, Washing¬
6, D. C.—(paper)—$1.

ton

Premium

From Hourly

ufacturing
of

Overtime

Ramsay

State Street,

—

Walter

Co.,

Inc.,

Authority,
.111
Eighth
Avenue, New York 11, N. Yr„
On request.

Production
and

Forecasting,

Control-—Second

Planning
Edition—

MacNiece—John Wiley

&
Sons, Inc., 440 Fourth Avenue,
York 16, N. Y.—$8.25.

New

Punched Card Annual of Machine

(complete
volumes, $37.50).

Department

Labor, Bureau of Labor Sta¬

tistics, 341 Ninth Avenue, New
1, N. Y.—On request.

York

Enterprise

Shell

Oil:

History

United

the

Sta-.es

tury-Crofts, Inc., 35 West 32nd
Street, New York 1, N. Y.—
(Cloth)—$7.50.
Control

Credit

—

New

Consumer

York

State

Con¬

Finance

sumer

Association,
Woolworth Building, New York
7, N. Y.—(paper).
Freeman:

Ideas

Foundation

cation,

Liberty

for

Economic

—

Edu¬

Irvington-on-Hud-

Inc.,

son,

Y.—50c

per

copy;

year.

Handbook

Penn

Life

Mutual

Insurance

Life

—

Insurance

Company, Independence Square,
Philadelphia 5, Pa. (on request).
Journal
ers,

the

Institute

February

articles
sonal

Bank¬

1957—Containing

"Finance

and

for

Per¬

Professional

Cus¬

tomers," "The Economic Intelli¬
gence Department of an English
Bank," and "Methods of Ter¬
minating or Varying a Trust"—
Institute

tee

—

Report of the Commit-

Economic Policy—Cham¬

ber of Commerce of the Unite I

States, Washington
(paper)—50c.
Monopoly

C.—

Power

Labor Unions

Exercised

—

National Asso¬

ciation of Manufacturers, 2 East
48th Street, New York 17, N. Y.

(paper) 25 cents.
More

for

John

Your

Tuck

Sta¬

1921-1955—As¬

sociation of American Railroads,
Bureau

of Railway Economics,
Washington 6, D. C. (paper), on

request.
Real

Estate

1957

for

Forecast

—•

Roy Wenzlick—Society for Sav¬
ings in the City of Cleveland,

Cleveland, Ohio.
Saving

Income

Capital Gains

Taxes

Through

Arno

Herzberg

—

Prentiee-Hall, Inc., 70 Fifth Ave¬
nue, New York 11, N. Y.
Security Dealers of North Amer¬
ica—1957

revised
bond

Edition—Completely
of stock and

directory

houses

United

Canada

and

(with

States

section on

Hawaii)—Arranged geograph¬
ically—Includes description of
character of business; names of
partners or officers and princi¬
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department
heads;
wire
services; teletype numbers;
phones; etc.—Herbert D. Seibert
& Co., Inc., 25 Park Place, New
York
7, N.
Y.—(Fabrikoid) —
$12.
Some New Patterns in U. S. Busi¬
ness

—

from

Selected business essays

"Time"—Time,

Rocke¬

feller

Plaza, New York 20, N. Y,
(paper).

Stock

26th

Edi¬

The—Second

Market,

tion—George

Leffler

Ronald Press Company,

The

—

15 East

Street, New York 10, N. Y.

—$7.

Griswold

School

—

Dollar

The

—

Amos

Business

Ad¬

request.

From

Trend

nual

Loans—Semi-An-

Bank

supplement for last half of

1956—American

ciation,
New

Bankers

Asso¬

East 36th Street.,
16, N. Y., $2.00 per

York

year.

Underdepreciation

from

Inflation

—Machinery and Allied Prod¬
ucts Institute, 1200 18th Street,
N. W., Washington, D. C.
per), 25c.

(pa¬

What You Can Earn in 250 Differ¬

Careers—Rittenhouse

ent

Capital

ministration,
Dartmouth
Col¬
lege, Hanover, N. II.—(paper)
—On

Record

Bankers, Lombard
Street, London E. C. 3, England
(available on subscription).

Mergers

Transportation—A

tistical

—

Kendall Boston—Appleton-Cen-

Federal

Railroad

set

Earnings in Min-

—

Inc.,

Walnut

2401

Street,

Press,
Phil¬

adelphia, Pa.—$1.
Woman Worker

Services
reau,

the

20c;

(Programs and
Bu¬

Minimum

Woman

Teachers

—

the ^Women's

Worker,

for

Wage and
10c; New

Nation's Chil¬

the

Community

dren,

15c;

Growth—Walter Isard and Rob¬

their

Jobs,

ert

Employment Problems of Older
Women, 35c), U. S. Department
of
Labor, 341 Ninth. Avenue,

Coughlin — Chandler-Davis
Publishing Company, Box 231,
Wellesley 81, Mass.—$5.

North Carolina, the Tar Heel State

Department

vation

and

Conser¬

Development,

Ra¬

leigh, N, C.

associated

Illustrated

—

York

five
Debt: Public

vision,

BRIDGEPORT, Conn.

York

deschibing
facilities
(available in English, Spanish,
and Portuguese)—Port Promo¬
tion Manager, The Port of New

Mich.—$8.50;

—(paper).

background material on North
Carolina—State Advertising Di¬

Perry

New

Accounting and Data Processing

viously with Carroll & Co.

(Special to The.Financial Chronicle)

brochure

—Volume 5—The Punched Card,
Maccabees Building, Detroit 2,

Administration, Dart¬
College, Hanover, N. H.

—8-panel folder and map with

Joins Smith, Ramsay

cents.

Port

Business

Seventeenth

;

De¬

O. Foster—Amos Tuck School of

sulting

(Special to The Financial Chronicle)

Man¬

Labor, Bureau of
Statistics, 341 Ninth Ave.,
New York 1, N. Y. (paper) 30

Municipal Costs and Revenues Re¬

With Colorado Inv. Co.

their

"Stock

large and expanding,
in which
technology will be changing
rapidly, in which competition will

problem

and

Oils—Special 10-issue

subscription

Market

per

galloping rise.

—

in¬

trial

power

Undoubtedly, the

important

created

DENVER. Colo.
Raymond G.
Penny has become affiliated with

inflation

erals and

Eliminating

immediate

end,

halting the tendency for

em¬

(3) The problem of rising labor

Canada's Treasure House of Min¬

as runaway

Labor

loping rise and to end,
always does
great collapse.
inflation

that

partment

initiative

Rising Labor Costs and Inflation

costs

usually

such

body sound personnel practices.

effect upon

first

contracts

caused by them.

who

Implications—U.

power

believe that a
creeping rise in
prices is bound to become a gal¬

vigorously for developing union-

employer ordinarily loses
the

particular,

negotiations and to work

review may be expected to lead

money

lead

not

job

ing for apprentices. This contribu¬
tion is expected
to yield
about
$400,000 a
year.
Although
the

prentice's

probably

large and sudden changes in
the agreements, but it should
help
both sides to do a better

train¬

Constructors'

contribution

hour

terms

relationship
equitable personnel

employers to take

few

with

policies

than

economists and businessmen

bondholders

21,300

corporate

continue
productivity,
prices must creep slowly upward
as
they have been doing during
the last several years. This pros¬
pect is deeply disturbing to many
rise

fairly

from

But

It is clear that if wages

creased

1956.

1956

dollar of sales and per
equity were

per

agreements and their
sound

cents

well below the average of 1947-50.

thorough review of the

in¬

5.3

dollar of stockholders'

prenticeship

ha?

12%

both

the standards of the U. S.
Bureau
of
Apprenticeship and State Ap¬

Agencies)

about

fort

and

1956, and corporate profits per
dollar of stockholders' equity in¬
creased
from
10.4%
in 1953 to

their

dollar of sales rose from 4.3

per

over-all

been able

the increases in costs
in
recent years
with the result
that corporate profits after taxes
pass

very
fact, how¬
makes it important for both
employers and union to take an

ever,

look

were

Employers

prices.

every

been

trade agreements

developed in

wages

money

higher

York 7, N. Y.—(Paper).

Population trends—Their

I have pointed

in most industries have

the

settle¬

concessions

been

not

mainly

the

made

the

understood

the labor force for the last 40 odd
years.

have

corporated

getting.

were

Sometimes

have

desire

features

have

for

need

demands

the

minimum

the

Problems

My remarks will conclude with
brief

ments,
would

Some Unsettled

condition.

Employers
the

VII

union

unions

management are going to be poor
administrators

other

some

large

years.

agreement

cents

piecemeal

New

Our Manpower Future—1955-65—

out, about half the gains of factory
lost

New

Indefensible

Weapon Which Must Be
By Law—Commerce
and Industry Association of New
York, N, Y., 99 Church Street,

part of its gains in money wages.

workers

Union

benefits.

In the last year, as

Picketing

State:

Restricted

in¬

lost through higher prices a

have

de¬

York

wages
rising
productivity, labor has

faster than

Union-

contracts
a

usual

unions

systematic

policies.

and

the

for

industrial

management

thought

of lax

second

apprenticeships.

need

policies

led

plants

many

their

The

(2)

review

discipline. In not a few cases the
very companies which had
been
rather
harsh
in
administering

the

completing

instances to the development

suddenly

the

employer of training appren¬
tices can be kept fairly moderate.
So
superior is
the training of
many
boys
that
they
become
foremen within a few years after

veloped

istration

Hence, the net cost to

years.

the

pat on

and thus be forced to

cases

two

ahead

out

comes

it is

firm stand when

of taking a

Wage Outlook

fringe

result

Thursday, March 7, 1957

Organizational

11.8%

additional

were

creases

increased

earnings

hourly

Cunent Business Trends

1956, for example, output

manhour
in
manufacturing
up about 7.7%, but average

per

Oil & Gas Output Forecast

port

Department of

—

terior,

Washington,

(paper).

New

Re¬

the

In¬

and
on

International

Trade

1955—United Nations

Columbia

University Press,
New York 27,
Y.—(Paper)—$7.

2960

Women

10c; Bibliograph

1, N. Y.

Statistics,

Your
—

York

Yearbook

—

Negro

Broadway,

Investments—Leo

Revised

Barnes—•

1957 Edition—American

Research

Council, 2

East

Ave¬

Larchmont, N. Y.—(Paper)
—S3.
; ......
nue,

Number 5618

185

Volume

(1137)

The Commercial and Financial Chronicle
0

The following statistical

Indications of Current

latest wjsek

Business Activity

week
-

IRON AND STEEL INSTITUTE:
operations (percent of capacity).

f AMERICAN
Indicated

Equivalent to—
Steel fhgots and castings (net tons)

month ended
Month

Week

Wpek

.Mar. 10

steel

Latest

Ago

§94.9

*2,429.000

*2,456,000

oil

condensate

and

ALUMINUM

"2,462,000

Feb. 22

gallons each)
Crude runs to stills—daily average (bbls.).
Gasoline output (bbls.)
Kerosene output (bbls.)
Distillate fuel oil output (bbls.).

7,183,350

*"7,795.000

T,976,000

8,189.000

25.673,000,

26,327,000

26;850,000

2,610,000

2,487,000

2,555.000

13.858.000

14,685,000

14.333.000

8,651,000

8,682.000

8,702.000

193,248.000

"Natural

CONSTRUCTION

—

22,552,000

18,684,000

21,723.000
87.895.000

91,385.000

106.490.000

35,812,000

39,531.000

37,102.000

Feb. 23

626.636

675.966

665.745

615,287

641.336

632,757

671,144

$321,197,000

$374,710,000

$406,802,000

—Feb. 28

211,391.000

160.805.000

223.012.000

—Feb. 28

109,806,000

213,905.000

183.790.000

99.348,000

.Feb. 28

75,598,000

162.856.000

154.370.000

80.260,000

.Feb. 28

34,208,000

51,049,000

29,420.000

19,088,000

New

Feb. 23

9.850.000

9.750.000

10.170.000

491,000

376.000

531.000

572,000

SALES INDEX—FEDERAL RESERVE
SYSTEM—-1947-49 AVERAGE = 100
Feb. 23

100

102

14,964,000

297,106,000

277,489,000

284,867,000

; 17,822,000

W 10,507,000

11,180,000

4.992

1,816

7,260

4,199

export

and

_■

(barrels)

___

January:

5,328
\ 7,822

—

delivered

cars

TRUCKING

ASSOCIATIONS,

December:

tin

tons.)

INC.

352

4,561,296

4,005,293

-------

—

4,243,234

January:

ELECTRIC IN8TITUTE:
Mar.

INDUSTRIAL)

(COMMERCIAL AND

FAILURES

INC

BRADSTREET,

—

DUN

Finished

steel

Feb. 26

5.663c

5.661c

5.622c

5.174c

Feb. 26

$62.90

$59.09

Feb. 26

$52.17

S53.3ii

$55.50

$47.83

Feb. 27

31.325c

31.400c

35.575c

46.150c

Feb. 27

(per lb.)_

29.650c

30.175c

32.750c

(E. &

at.
(pHmarv pig. 99%) at—

(East St. Louis)

Zinc

(New York)

Straits tin

13.500c

25.000c

99.250C

102.375c

96.54

108.16

.95.92

96.38

95.63

91.98

90.84

90.79

•

5
'

701.31

111.81

100.81

101.64

99.04

96.54

96.23

Mar.

Oven coke

ERAL

102.80

Deliveries

89.51

95.47

95.32

94.86

306.56

96.69

96.38

108.52

97.31

97.16

96.54

109.42

Mar.

PAPER

(

tons

—

3.25

(tons

2.000

(tons

pounds)

2,000

2.83

3.15

DEPT.

—

3.79

3.81

3.86

3.16

In consuming

3.99

3.27

3.58

3.36
3.25

3.96

3.98

3.92

3.93

3.97

411.7

424.2

219,422

234,936

248.753

Feb. 23

262,293

280,060

282,631

291.984

100

370,885

389.413

380 684

499,696

110.93

111.24

111.13

107.07

Feb- 23
Feb. 23

MarFOR ACCOUNT -OF MEM¬

sales

1.250,390

285,740

1.020,160

1.481,530

1,767,270

-r- — r.r; r-ti

—

— rrfr

—

for account of

273.130

349,050

30,100

22,700

sales

343,700

231,350

276,050

366,400

262,350

425.185

382,981

528,^71

—

SECURITIES EXCHANGE

sales by

dealers

111.820

139,950

481.781

461,048

558,625

533,050

582,281

572,868

698,575

620,680

.Feb.

1.998,175

1.883,111

2.472,561

351,430

448,390

Dollar value
>eoo

Kit

Xooloi-c

CllstrimCM1

RalftS)—

by dealers (customers' sales)—
Number of orders—Customers' total sales.

Odd-lot purchases

1,921,511

1,727,158

2.383,855

1.842,440

2,084,198

2.832.245

2,204 070

Dollar value

$63,114,186

$59,541,934

$77,553,576

877,489

1,078,221

Round-lot purchases by
Number of shares

9,404

8,315

1,069,906

$50,702,912

$42,075,870

$52,253,290

255,880

191,930

214,180

AND

ACCOUNT

FOR

Short
Other

255 880

191,930

214~180

552,240

540,750

699,070

522,180

NEW SERIES — U. S.
(1947-49 = 100'

LABOR

—

...

Revised

T«n

Monthly

figure

J957

as.

investment

one-half cent a

Plan.
pound.

33.876c

43.749c

long ton)

45.562c

£272,967

Not Avail

£264.716

£273.408

Not Avail.

16.000c

16.151c

15.800c

15.960c

£116.256

£115.681

1118,568

£114.534

£114.684

£116.500

13.931c

£103.256

£101.368

£100.835

long ton)

£98.682

£96.796

£97.659

ounce)
Silver, London (per ounce)
Sterling Exchange
(check)
Tin, New York Straits
__
Gold (per ounce, U. S. price)
—
Quicksilver (per flask of 76 pounds)—_—

91.375c

and

three months

Sterling
York

New

'per

(per

York boxed
(per pound), bulk Laredo—
(per pound), boxed Laredo
refined (per ounce)
refined (per pound)
(per pound)(per pound)

Platinum,
IC'admium.

97%

13.431c

Exchange—

New

Antimony,

grade
grade ingot v/eighted aver¬

90.357C

80.2£0d

8C.099d

78.267d

$2 7957C

$2.78504

$2,80662

101.308c

104.405

104.820c

$35,000

$255,000

$273,040

36.590c

36.470c

33.000c.

33.000c

33.500c

$101,038

5104.000

$103 560

$1.70000

$2.35000

$2.60000

33.000c

530,600

613,210

11,311,910

8,978,060
9 508,660

31,829,160
12.442,370

10,247,870

11.848,410

(per

Aluminum,

453,260

Magnesium

10,701,130

Bismuth

ZINC

pound)
99% grade
ingot

(per

24.400c

27.100c
25.000c

35.250c

32.500c

72.480c

64.500c

$2 25

pound)

(BUREAU

OXIDE

27.100c

primary pig
pound)

25.000c

74.000c

age

536,500

116.8

316.9

116.9

112.1

88.3

88.5

89.4

85.1

Feb. 26

103.6

103.7

104.3

98.7

71.3

120.4

80.8

80.7

82.9

Feb. 26

125.4

125.2

of foreign crude runs.
SBased on new annual capacity of 133,150 tons as
1, 1956 basis of 128,363,000 tons.
tNumber of orders not reported since introduction of
iPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
- * *
..
.. *
....

tf Includes 789,000 barrels
against Jan.

(per

35.649c

£265,898

13.500c

gCadmium

Feb. 26

other then farm and foods.

35.526c

33.337c

:
—

$2.25

Not Avail

MINES)—Month

of December:

products

commodities

*27,455

QUOTATIONS)—

14.000c

tCadmium,

Feb.26

Meats

14.000c

Antimony,

.Feb. 26

commodities

Processed foods

refinery

prompt

^Antimony,

DEPT. OF

Commodity Group—
Farm

months, London

Cobalt,

Feb.

WHOLESALE PRICES,

31,374

tons)

(E.

184,486
3,202,693
92,192
27,564

Aluminum, 99%

Feb*

sales

short

tons)-,.

(per pound)—

Silver,

322,320

Feb-

sales

*85,251

80.3'

13.500c

Silver

SALES ON THE N. Y. STOCK
ROUND-LOT STOCK TRANSACTIONS
OF MEMBERS (SHARES):

Total sales

*178,324
*2,926,162

92,538

19,399,000
9,577,006
478.8

MINES)—

nPrompt, London (per long ton)
t+Three months, London (per long ten)
Zinc (per pound)—East St. Louis
§?Zinc, Prime Western, delivered (per pound)'
ttZinc, London, prompt (per long ton)

Feb.

round-lot sales—

Total

165,519
3,170,136

Common, New York (per pound)—:
Common, East St. Louis (per pound)

322,320

80.6

21,983,000
I

ounces)

short

(in

tThree

ROUND-LOT STOCK

EXCHANGE

fine

(in

ttLondon,

$60,075,471

Feb.

431.6

21,553,000
18,736,000
8,062,000
403.1

18,725.000
10.790.000

October:

Domestic

1,189,576

.Feb.

21,564,000

76.5

middle

Export refinery

6,396

868,085

Feb.

dealer

States:

PRICES

Copper

1,195,972

10,010

Feb.

of shares—Total sales.
sales
Other sales

COMMISSION—

(in fine ounces)

Lead

METAL

$70,735,609

1.041,278

8hort

All

1,439,920

—

Number

All

1,564,230

Feb.

Round-lot sales by dealers—

TOTAL

1,242,434

1.051,288

production of recoverable metals in the

Silver

* 19,399,000

127,176

COMMERCE):

spindle in place Jan.

(BUREAU

ttZinc, London,
1,375,914

.Feb.

Customers' other sales.

978,766

18,736,000

Lead—

2.272,941

.Feb.

short sales.

Customers'

per

COMMERCE

Copper

361,630

—FebFeb-

(DEPT.

hours

OUTPUT

Gold

2.009,860

357,040

Railway Employment

United

-87,630

COMMISSION:

(customers' purchases)—t

Mine

528,870

120,500

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK

EXCHANGE

31,000

245,950

314,300

-FebFeb
Feb-

Total sales

"Number

INTERSTATE

230,600

24,700
289,600

members—

Total purchases
Short sales

"Odd-lot

Active spindle

1.321,040

Feb.

"Total round-lot transactions

SPINNING

970,445

750,282
1,703,918
17,232,236
157,170
1,4^5,233

Spinning spindles in place on Feb. 2_
Spinning spindles active on Feb. 2—
Active spindle hours (000's omitted) Feb. 2__

1.078,040

1.235,280

Feb.

sales
S&163

Other

631,507
1,567,196
16,451,579

—

243,000

215,330

FCb-

sales

1.595.140

215,120

1.376,360

off the floor—

purchases

1.227,000

1.170,130

Febeet3-

sales

Total sales

Other transactions initiated

of Feb. 2—

January (1947-49=100)

206,230

-—i,ebFek-

sales

50,016

18,725,000

January

COTTON

1.357.660

F^b-

purchases

Month

the floor—

„

METAL

Feb*

initiated

Index

REPORTER PRICE INDEX—

TRANSACTIONS

establishment

403.3

245,909

month

public storage as of Feb. 2

3.20

4.12

Feb-

Other

4.08

sales

Short

3.96

4.49

purchases

Total

4.47

4.05

4.04

Feb. 23

period

120,645

840,567
1,640,031
15.217,293
123,446

Cotton spindles active as ot Feb. 2——

•'

4.45

ASSOCIATION:

(tons)

113,564

COM¬

Linters—Consumed month'of January
Stocks Feb. 2_u——

3.97

■'

130,431

MERCE—RUNNING BALES:

Consumed

95,594

—.

LINTERS

AND

3.27

119,925

pounds)

stocks at end of period (tons
of 2,000 pounds)

3.07

108,717
123,798
'•
*

4.01

$573,000

A.—

2,000 pounds)
of

3.70

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered

Other

*104,583
129,839

231,400

1,697,200

Jan.:

3.98

Mar.

INDEX

Percentage of activity
Unfilled orders (tons) at end of

Short

$506,000

6,650,90t
-

FED¬

fabricators—

Month

3.65

Mar.

Group

tons)

YORK—

3.97

Mar.

Orders received (tons)

Total

*2,442,970

109,479
139,150

NEW

3.67

Mar.

NATIONAL PAFERBOARD

Other

2,325,674

$548,000

OUTSTANDING

BANK

Mar.

Other transactions

*204,854

(000's omitted)-

Mar.

Group

Short

#882,30C

*6,328,272

219,949

Refined copper

Total

*6,533.126

6,615,935

'3.26

Mar,

ROUND-LOT

120

835

„

month (net

at end of

Copper production in

COTTON

DAILY AVERAGES:

OIL, PAINT AND DRUG
1949 AVERAGE

110

814

G,835,884

tons)—

COPPER INSTITUTE—For

88.95

•

Production

117

,787

———

Mar.

MOODY'S COMMODITY

60,717

Mar.

Utilities

*34,913

of Dec.:

MINES)—Month

RESERVE

of Jan.

Refined

Mar.

corporate

Industrials

89,962
41,330

42,922

service-

tons)

(net

stock

COMMERCIAL

Crude

89.23

Group

Public

90,313

99,787
*63,632

(tons)

tons)

(net

coke

108.16

- *

.Mar.

Aaa

installed

(net

Beehive

110.15

98.25

Mar.

Railroad

98,234

83,10C
78,974

RAILROADS—

AMERICAN

units

coke

96.23

99.36

Government Bonds

Average

93,452

—

(tons)_______

105.750c

I—Mar!

BOND YIELD

period

(BUREAU

Oven

22.500c

98.125c

Group
Utilities Group

Industrials

14.000c

13.500c

Mar.

Railroad

U. S.

14.000c

13.500c

Mar.

MOODY'S

14.000c

13.500c

Mar"

Public

14.000c

AVERAGES:

„

___

January:

Production

corporate

Aaa

15.600c

Feb. 27

Government Bonds

Average

15.800c

Feb. 27

at.

MOODY'S BOND PRICES DAILY
U. S.

Month

(tens

New locomotive units on order (end of month)

16.000c

15.800c

Feb. 27

Aluminum

16.000c

Feb. 27

(delivered)

JZinc

16.000c

Feb. 27

Louis)

(St.

Lead

at
at

Lead (New York)

grades

of 2,000 pounds)

Locomotive

COKE

rexinery

refinery

Export

end

output all
—

J. QUOTATIONS):

Electrolytic copper—
Domestic

smelter

Unfilled orders at end of period

46.700c

(per gross ton).

METAL PRICES

zinc

2,000 pounds)
Shipments (tons

ASSOCIATION

Pig iron (per gross ton).
Scrap steel

293

320

300

284

Slab

Stocks

&
Feb. 28

11,920,000

11,791,000

11,199,000

12,322,000

IRON AGE COMPOSITE PRICES:

16,660,000

AMERICAN ZINC INSTITUTE, INC.—Month of

Electric output (in 000 kwh.)

24,685,000

.14,722,000

—

new' freight cars

freight

Month

EDISON

(barrels)

Intercity general freight transported

DEPARTMENT STORE

-24/OOC.

31,123,000

9,970.000

Feb. 23

lignite (tons)
anthracite (tons).

Pennsylvania

imports

stocks

for

carriers

coal and

Bituminous

all

AMERICAN

BUREAU OF MINES):

23,608,00c

.u.26,124,000

(barrels)

•

256,368.000

Federal
(U.

210,406,00C

32,000

43,000

♦

AMERICAN RAILWAY CAR INSTITUTE—

$355,716,000

and municipal

State

COAL OUTPUT

234,038,000

215,936,000
24,245,000

24,221,000

•

consumption domestic
(barrels)
w-.'. <

Month

Feb. 28

construction

Public

240,213,000

214,174,000

(barrels)
(barrels).

Indicated

ENGINEERING

output

output
(barrels)

products

Orders

construction

Private

14,172

238.433.000

oil

crude

imports

Decrease

S.. construction.

133,639

687.018

•Feb. 23

;

gasoline

oil

Refined

74.330.000

35,772,000

Crude

NEWS-RECORD:

Total

87,584

Benzol output

193,988,000

25,619.000

Feb. 22

frqjghfc loaded (number of cars)
freight received from connections (no. of cars*

ENGINEERING

149,125

62,290

145,081

production (barrels of 42 gal¬

each)-

Domestic

8,828.000

202,254.000

204.122.000

Feb. 22

lons

Feb. 22

;

Residual fuel oil (bbls.) at

CIVIL

Ago

end of Nov.

INSTITUTE—Month'

PETROLEUM

November:

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

Year

Month

MINES):

primary aluminum in the U. S,

Total domestic

13,829.000
-

Feb. 22

Distillate fuel oil (bbls.) at

aluminum (3hort tons)

AMERICAN

26,389.000

2.318,000.

Feb. 22

unfinished gasoline (bbls.)
Kerosene (bbls.) at

Revenue

(BUREAU

(in short tons)—Month of November^——

8,084,000

Feb. 22

,.i

7.395,500

7,515.400

Feb. 22

Residual fuel all output (bbls.).
f
:«toclts at refineries, bulk terminals, in transit, in pipe lines—

■

7,567,200

Feb. 22

Finished and

(bbls. Of

of that date:

are as

Month

100.0

Stocks ol

output—daily average

of quotations,

cases

Ago

2.485,000

or,

either for the

are

Latest

AMERICAN PETROLEUM INSTITUTE:
Crude

that date,

Production of
Mar. 10

production and other figures for the

cover

Dates shown in first column

Year

97.1

*96.0

tabulations

month available.

(short tors)

Shipments

(short tons)—

Stocks at end of month

12,679

16,760
14,551

17,292
14,301

26,193

21,412

23,177

17,460

Production

(short tons)

JBased on the average of the
§ Average of quotation on special shares to plater,
carload lot boxed. §§Delivered where freight
from East St. Louis exceeds 0.5c.
**F.o.b. Fort Colburne, U. S. duty included.
ttAverage of daily mean and bid and ask quotation
at morning session of London Metal
Exchange.
^Increase all stock.
,

'Revised figure.'

producers' and

tBased on the producers' quotation.

platers' quotations

fDomestic five tons or more but less than

£8

(1138)

The Commercial and Financial
Chronicle

Securities

Now

it Adams-Phillips, Inc.
Feb. 20 (letter of notification) 5,000 shares of common
stock (par $2G) to be offered to stockholders, officers,
directors and employees for a period of 10 days, the un¬
sold portion to be offered publicly. Price—$21 per share.
Proceeds
For purchase of additional autos and for
working capital. Office — 10 S. Craig Ave., Pasadena,
Calif. Underwriter—Pasadena Corp., Pasadena, Calif.
—

Allied Resources

Dec.

cent).

filed

Fund, Inc.

400,000 shares of

Price—At market.

Underwriter—Fund

stock

common

Proceeds

For

—

(par

one

investment.

Corp., 523 Marquette Ave., Minne¬

apolis, Minn.

Minerals, Ltd.,
(letter of notification) 3,000,000 shares of

stock

mon

(par five cents).

expenses'

properties.

901

Office

—

Underwriter—Lackner

which

130,000
and

Price—To

per share.
and development of oil

Sherman

St., Denver,
Co., Denver, Colo.

^American Electronics, Inc.
Feb. 28 filed 190,000 shares of
company

com¬

Price—10 cents

Proceeds—For mining

are

Colo.

for

(par $1),

account

60,000 shares for selling stockholders.
supplied by amendment.
Proceeds—For

and

Amejican Gas &

Electric Service

New

acquire additional truck terminal branches;
inventories; and for working capital. Busi¬
Transport refrigeration equipment. Office—947
Communipaw Ave., Jersey City, N. J. Underwriter—
Fred Kaufman Co., 120 Eim
St., Orange, N. J.
ness

Corp., 30 Church St.,

—

Carolina
Australia

(Commonwealth of)

Feb. 21

(3/13)

$20,000,000 of 15-year bonds due March 1,
1972.
Price—To be supplied by amendment.
Proceeds
—Principally to refund $17,114,000 of 314% bonds wnich
June

1957

for

and

improvements,

etc.

($100 per share).

Underwriter—Morgan Stanley & Co., New York.

market.

Proceeds—For

top, D. C,

for

investment.

Office—Washing-

filed

maximum

(par

share for each 11 shares

about

mailed

held; rights to expire on or
Subscription warrants are expected

April 3, 1957.

about

general corporate purposes. Office—Los Angeles, Calif.
Underwriters—Van Alstyne, Noel & Co., New York, and

plied <by
and

for

Crowell, Weedon & Co., Los Angeles, Calif.

ton

American Federal Finance Corp., Killeen, Texas
Sept. 5 filed 40,000 shares of class B common stock (par

19.

Price—To

sup¬

Corp., New York.

•

March

amendment.

Proceeds—To

construction.

new

bank

repay

loans

Underwriter—The First Bos¬

reduce

Underwriter

(3/11)

bank

loans

and

None.

—

subsequently amended

Price
About

seven

common

—

shopping

—

center

supplied

$4,100,000
sites

will

and

$4,500,000 of

amendment.

used

Penn

acquire

Fruit

super¬

market adjacent to one of

(no par) to be offered for subscription by common
stockholders of record March 18, 1957 at the rate of one
new

cent);

one

Proceeds

581,537 shares of

Telegraph Co.

Proceeds—To

construction.

new

debentures.

^ Baltimore Gas & Electric Co. (3/20)
28

Centers Corp., Philadelphia, Pa.
July 30 filed $8,000,000 of 5l/z% sinking fund debentures
due Aug. 1, 1971, and
1,600,000 shares of common stock

Distributor—Automation Development Secu¬
Inc., Washington, D. C.

rities Co.,

Telephone

Feb. 15 filed 58,310 shares of common stock
to be offered
for
subscription
by common stockholders of record
March 11, 1957 on the basis of one share for
each four
shares held; rights to expire on March 27.
Price—At par

filed

mature

ISSUE

for increased

York

REVISED

and

open

Loeb & Co. (jointly); The First Boston Corp.;
Harriman Ripley & Co. Inc. Bids—Expected to be re¬
ceived up to 11 a.m. (EST) on March 19 at the office of

stock

sold

Inc.; Eastman Dillon, Union Securities & Co.

ITEMS

•

Kuhn,

Feb.

(3/25-29)
common

Registration

AD DITION S

SINCE

Automation Development Mutual Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At

Amalgamated
Nov. 23

Co.

Thursday, March 7, 1957-

it IN DICATES

in
&

them; the balance will be used
centers at the seven sites and to

develop shopping
acquire and develop additional sites for related real
estate
activities, and for general corporate purposes.
Underwriter

and New

tional

300,000

Co.

it at

Incorporated, Philadelphia

agreed to purchase an addi¬
shares and reoffer them to per¬

common

selected

sons

Blair

—

York. Latter has

$1.10

share.

per

Offering—Date

indefinite.

$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
share. Price—$55 per unit. Proceeds—To purchase used
car

and

paper

the field of

the

extend

new car

company's operations into

financing.

Underwriter—None.

J. J.

Bank

Shares,

Inc.

Dec. 27 (letter of notification) 30,000 shares of 6%
prior
preferred series C stock being offered for subscription
by holders of series A prior preferred slock of record
Dec.

31, 1956

the basis of

shares of series A stock
11.

Price—At

Fain is President.

added

American Laundry Machinery Co. (3/21)
Feb. 27 filed a maximum of 110,244 shares of common

($10

par

share for each five

one new

held; rights to expire
per

share).

Proceeds—To

Ave.,

stock

(par $20) to be offered for subscription by common
stockholders of record March 20, 1957 at the rate of one
share

new

for

each

five

held; rights to expire
April 3, 1957. Price—To be supplied by amend¬
' Proceeds—For working capital and
general cor¬

about
ment.

porate purposes.

Underwriter—Goldman, Sachs & Co.,

American

Natural

Gas

record

new

scription

for

the basis of one
(with an oversub¬

held

privilege);

rights to expire on March
14,
share. Proceeds—To purchase
Michigan Consolidated Gas Co., a sub¬
sidiary, providing the latter with- funds to repay or
reduce $25,000,000 of bank loans.
Underwriters—White,
1957.

Price

—

$54.50

per

stock of

common

Weld & Co. and Drexel & Co.
•

American

Feb.

filed

of which
pany

(jointly).

Photocopy Equipment Co.
200,000 shares of

50,000 shares

are

(3/25-28)

stock

common

(par $1),

to be sold for account of

and 150,000 shares for selling stockholders.

com¬

Price—

To be

supplied by amendment. Proceeds—For working
general corporate purposes. Underwriter—
Lehman Brothers, New York.
capital and

American

Provident

Investors

Feb. 15 filed 50,000,000 shares of

Corp.

common

cent). Price—$2 per share. Proceeds
capital and general corporate purposes.

stock

—

For

(par

one

working

Office—Dallas,

Tex.

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
of

New

^American Telephone & Telegraph Co.
March

filed

$250,000,000

28-year

(3/26)

debentures

due

April 1, 1985.

Proceeds—For advances to
subsidiary and
companies; for purchase of stock offered for
subscription by such companies; for
extensions, additions
and improvements to its own
telephone plant; and for
associated

general corporate purposes.
mined by competitive

Underwriter—To be deter¬
bidding. Probable bidders: The

First Boston Corp. and

Halsey, Stuart & Co. Inc. (joint¬

ly); Morgan Stanley & Co.
to be received

Bids—Tentatively scheduled

March 26.

Appalachian Electric Power Co. (3/19)
Feb. 13 filed
$29,000,000 of first mortgage bonds

March

1, 1987.

construction

St.

Marquette

Bishop

it Basin. Royalty Co.
Feb. 25
stock.

(letter of notification) 100,000 shares of

common

Price—At par

($2 per share). Proceeds—To in¬
producing and non-producing oil and gas leases.
Office—826 Amarillo Bldg. (P. O. Box
1235), Amarillo,

tional

Tex.

Underwriter—None.

it Bassons Industries Corp.
«•
(letter of notification) 19,945 shares of common
stock (par 50 cents). Price—$2.50 per share. Proceeds—
To two selling stockholders.
Underwriter—None. Secu¬

filed

rities

are

be sold

customers of
•

the over-the-rcounter market

Jay W. Kaufmann & Co., New York.

Bayless

bank

repay

Service

stocks
Co.

(A. J.)

filed

be offered to

the public and 10,000 shares to em¬
ployees, the latter without underwriting. Price—To pub¬
lic, $10 per share; and to employees, $8.75 per share.
Proceeds—To selling stockholders.
Underwriter—H. M.
Byllesby & Co., Inc., Chicago, 111.
are

Beautilite Co.
Dec.

(letter of notification) 240,000 shares of com¬
mon stock
(par $1). Price—$1.25 per share. Proceeds—
For partial payment for plant
site; partial payment of

obligation

Memorial

Office—4718 W.

18th

Inc. and for working capital.
St., Houston, Tex. Underwriter—

Benjamin & Co., Houston, Tex.

Central

development;

Underwriter—None.

(CST)

a.m.

expansion;

Proceeds—To repay bank loans and for
Underwriter—To be determined

program.

by competitive bidding. Probable bidders:
Halsey, Stuart

Chinook

shares of
common

common

stock

(par

and

100,000 of 7% 7-year convertible debentures.
Price—Of stock, $12 per
share; and of debentures, 120%
principal amount. Proceeds—To acquire properties of

and

moving

2029

homes

St., N.

Burma

W.,

contractual

Washington, D.

and

other

cor¬

None.

Plywood, Inc., Rainier, Ore.
of

common

capital stock. Price—
Proceeds—For acquisition of
construction of a mill building, purchase
and installation of
machinery and equipment, and at
operating capital. Underwriter — Industry
At par

($3,000

plant

per

share).

site,

inc.

Developers,

it Coin,
stock

For

(letter of notification) 136,500Shares of common
10 cents) to be offered to stockholders and

(par
to

others.- Price—25

mining

expenses.

Under writer—None.

Colorado

Central

cents per shdre.
Proceeds—
Office—Grove Hotel, Denio, Nev.

Power

Feb. 27 filed 74,175 shares of
be offered for
subscription

Co.

record

March 4,

31*5

1957

(3/19)

common

each

Inc.

Feb. 21

then

stock

common

the basis of

(par $5) to
stockholders of

one

new

for

shares held;

rights to expire on April 2, 1957.
be supplied by amendment. Proceeds
For
construction program. Underwriter
The First Boston
Corp., New York.
Price—To

—

Golf, Inc.
(letter of notification) 50,000 shares of common
(par five cents). Price—$3 per share. Proceeds
—For promotion and
advertising; working capital; and
for development of new
products.
Business—Manufac¬
Feb. 25

stock

Feb.

sale

golf balls.

Office

—

161

Underwriter—Landau

East 37th St.,
Co., New York.

shares to promoters. Price—At
par
ceeds — For
equipment,

($1 per share).

Pro¬

(letter of notification) 22,956 shares of common
(par $10) to be offered to stockholders on a basis

stock
of

one

new

share for each three shares held.

Price—$13

share.

Proceeds—For working capital and for reduc¬
tion of short term loans.
Office—Board of Trade

per

141 W. Jackson

Bldg.,
Blvd., Chicago 4, 111. Underwriter—None.

Commonwealth Edison Co.
Feb.

Shore

Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and
100,000

capital

—

Columbia Malting Co.

(letter of notification) 4,000
$1); 6,000 shares of class B

—

March 12.

equipment;

Underwriter

purposes.

Sept. 4 filed 200 shares

i< Braddock Investment Corp.
stock (par

Underwriter—None.
due

porate

York, N. Y.

types

Light Co.,

Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
of principal amount.
Proceeds—For research and

and

Office

90%

ture

basis.

Power

Century Controls Corp., Farmingdale, N. Y.

New

various

(par $5).
purchase addi¬

received up to 10:30

Magnolia Ave., Riverdale, Calif.

$1)

stock

petitive bidding.
Probable bidders: Blyth & Co., Inc.,
Smith, Barney & Co, and Harriman Ripley & Co. Inc.
(jointly); Lehman Brothers and Lazard Freres & Co.
(jointly); The First Boston Corp. and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids—Expected to be

instalment debentures (an additional 3% interest to be
payable contingent upon net earnings). Price—At face
amount.
Proceeds—For working capital.
Office—6135

and

Colt

it Bourns Laboratories, Inc.
Feb. 21 (letter of notification)
$200,000 of 5% registered

Feb.

(3/12)

common

loans

Oklahoma and Southwestern Gas
Underwriter—To be determined by com¬

& Electric Co.

Markets, Inc. (3/12)
430,000 shares of common stock (par $1),
of which 405,000 shares are to be sold for the
account
of selling stockholders and
25,000 shares are reserved for
issuance' pursuant
to
company's Employee Incentive
Stock Option Plan. Of the
405,000 shares, 395,000 shares
Feb.

Corp.

600,000 shares of

common

Public

vest in

March 1

February 27, 1957,
each

Office—7th

Proceeds—To

Co.

14 filed

442,114 shares of common stock (par $25)
being offered for subscription by common stockholders

fund.

general

Minneapolis, Minn.
Underwriter—M.
Co., Minneapolis, Minn.

New York.

Jan.

March

Central & South West
Feb.

due

(3/12)
$50,000,000 first mortgage bonds, series S,
March 1, 1987. Proceeds—For construction
program.
18

filed

Underwriter—To be determined by
competitive
Probable bidders: Halsey, Stuart & Co.

bidding.
Inc.; The First

Boston

Corp.; Glore, Forgan & Co.

Bids—To be received

exploration, drilling, working

and

other

general

corporate

purposes.

Under¬

writer—To be named later.

it California Electric Power Co.
March

filed 300,000 shares of

(4/2)

stock (par $1).
bank loans. Underwriter
To be
by competitive bidding. -Probable bidders:
Merrill Lynch,
Pierce. Fenner & Beane; Lehman Bro¬
thers; Carl M. Loeb, Rhoades & Co. and Bear, Stearns &

Proceeds—To

repay

—

determined

Co. (jointly); Kidder,
Peabody & Co.; White, Weld & Co.
Bids—Expected to be received on April 2.

it Canadian Fund, Inc., New York
filed (by amendment)
200,000 additional shares
of capital stock
(par $1). Price—At market. Proceeds—
For investment.
Feb. 28

New York.

Boston

Philadelphia

Pittsburgh

San Fkancisco

PrioaU Wires

all

ojjices

Chicago

Cleveland

Cargo Cool Corp..
Jan. 31
stock

Steps Up Sales!

common

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per

common

sha^e. Proceeds—To

You sell securities and services at

faster pace in

America when you advertise them in the
No

other

your most

and the

medium

Mid-

Chicago Tribune.

Mid-America is so widely read
by
important prospects—both professional investors

general public. For best results from

tising, call

your

advertising counsel

Tribune representative

your

nearest

today.

QUjirag0 QTritmue
thl

world's

ckuu5t

adver¬

Chicago

mwhamu

Number 5618

185

Volume

1820, 72 West Adams St., Chicago 90, 111., at or
a.m. (CST) on March 12.

at Room

Commonwealth Investment Corp.
Jan.

March 7

499,400 shares of common stock

filed

(par SI).

Proceeds—For working capital to
expand
company's business and operations.
OfficeSioux Falls, S. D. Underwriter—None.

Feb.

$54,827,500 of 4*£% convertible debentures

filed

15, 1972, being offered for subscription by com¬

due Feb.

stockholders of record Feb. 25, 1957, on the

mon

; $100

each

for

debentures

Underwriters—Morgan Stan¬
Co. and The First Boston Corp., both Of New

construction program.

for

ley

York.
•

(Offering

(S.

Mich.

Jackson,

Co.,

Fuller

9,778

March

.Class A Common

American Laundry
(Offering

March

underwriting)

Southern Ry.__

Public

11:30

American

Bonds

EST)

a.m.

Common

March 25

Common

Minnesota Power & Light Co.

$5,540,000

to stockholders—no underwriting) about $12,000,000

(Offering

3CO.OOO shares

646,850

EST)

noon

West Penn Power Co

Common

underwriting)

Utilities Corp

(Bids

Common
Goldman.

Equip. Trust Ctfs.

(Bids

shar;s

08,310

Duval Sulphur & Potash Co._
(Offering ^stockholders—no

(Thursday)

Machinery Co

stockholders—underwritten by
<fc Co.) 110,244 shares

(Monday)

stockholders—no

Common

150,000 shares

Corp.)

Sachs

Carolina Telephone & Telegraph Co.—-Common
(Offering

First Boston

$1,000,000

Co.)

(Offering to stockholders—without underwriting)

/Feb. 13 filed 549,324 shares of common stock (no par)
being offered for subscription by common stockholders
of record March 7, 1957 at the rate of one new share for
each 15 shares held; rights to expire on March 22, 1957.

(The

Common

underwriting>

Equip. Tr. Ctfs.

$3,700,000

United States Borax & Chemical Corp

Machinery Co

190,000 shares

Spokane, Portland & Seattle Ry

(Friday)

Tower Acceptance Corp

General

Power

Consumers

stockholders—no

shares held;

common

Blosser & McDowell),

(Bids to be invited)

March

basis of

rights to expire March 15, 1957. Price — At par (flat).
Proceeds—To retire about $43,000,000 of bank loans and

Common

(Straus,

—Equip. Trust Ctfs.

,(Bids to be invited)

CALENDAR
Roberts Co.

(Thursday)

Southern Pacific Co

National Rubber

Consolidated Edison Co. of New. York, Inc.

•

ISSUE

NEW

rbefore 10:30

'Price—$4 per share.

(1139)

The Commercial and Financial Chronicle

(Van

Electronics,
Alstyne,

Noel

$12,000,000

Co.

Co.)

(Monday)

•

Common

Inc.__
Crowell,

and

Weedon

190,000

Pennsylvania RR.

American

—Equip. Trust Ctfs.

___

Photocopy Equipment Co._

(Bids

Employees may enter subscriptions for unsubscribed
share. Price—$42.75 per share. Proceeds—For construc¬

Underwriter — Kuhn, Loeb & Co. and
Ladenburg, Thalmann & Co. (jointly).
tion

program.

(H.

Feb. 1, 1967. Price
par.
Proceeds — For loans, working capital, etc.
Underwriters
Walnut Securities Corp., Philadelphia,
Pa.; B. Ray Robbins Co., New York, N. Y.; and Berry
& Co., Newark, N. J. '"
: ;
.
.
—

15 filed 600,000

Jan.

(3/18)

shares of common stock. Price—At
investment. Distributor—Dela¬

300 Broadway,

Inc.,

Distributors,

Co.

10:30 a.m.

Inc.)

(Bids

10.30

Camden, N. J.

(Bids

(Glore,

Inc.)

Inc.;

(Sutro

Common

offer—Paine,
&

Co.

Pioneer Natural
(Eastman

Webber,

act

Gas

Baohe

Curtis, and F.
819,000

Inc.)

Co.,

^ Diversified
*

March 4 filed
stock

Investment Fund, Inc.
shares of capital
Proceeds-r—For in¬
'
'

(by amendment) 500,000

$1).
Price—At market.
Office—Elizabeth, N, J.

(par

vestment.

Australia

(Bids

Feb.

filed

debentures

Inc.

Industries,
due

$20,000,000
March 1,

(3/14)

Co.

convertible subordinated
Price—To be supplied

Gob

New York Central RR._

Underwriter—Blyth & Co., Inc., New

working capital.

Nordeman

(Bruns,

(Bids

& Potash Co. (3/11) «
of capital stock (no par) to
be offered for subscription by stockholders on the basis
of three new shares for each 10 shares neld as of Mai en

(Goldman, Sachs & Co.;

Duval Sulphur

•

1957.

11,
'

Price—To be supplied by amendment. Pro general corporate purposes. Underwriter—

ceeds—For

(Drexel

(Offering

oversubscription privi¬
April 4, 1957. Stone & Web¬
ster Securities Corp.. Boston, Mass., will act as subscrip¬
tion agent. Price—To be determined by the Association
on March 19. Proceeds—To purchase common and capital
stocks of Blackstone Valley Gas & Electric Co>, Brockton Edison Co. and Fall River Electric Light Co, Underwriter—To be determined by competitive bidding. Probable bidders: Kidder, Peabody & Co.; Blyth & Co., Inc.;
Stone & Webster Securities Corp.; Wh£te. Weld & Co.
Bids—To be received at 49 Federal St., Boston, Mass.,
up to 11 a.m. (EST) on March 20.

for each 12 shares

held (with an

V
*

•

(3/18)
shares of cumulative

filed

150,000

preferred

(par $100). Price—To be supplied
Proceeds—For expansion program of
Northwest Pipeline Corp., a subsidiary. Under*

writer—White,

Weld &

•

Feb.

Natural Gas Co.

Paso
26

filed 300,000

(3/18)

Dresser

New

York.-

of 1957 (no par), to be offered

(Blyth

(letter of

port Circle, Route 38, Pennsauken,
Arthur & Co., Haddonfield, N. J.
Esk Manufacturing,

March

Lake City,

Utah.

ing fund debentures

Pa. (3 20)

(No

(M.

Inc.*

Power

20,000

share®

Common

Co*—

(Wednesday)

invited)

Common

1,500,000

(Tuesday)

April 9

Power Co.

Electric

California

Bonds

iBids

3:45

600.000

(Bids

Stone

Electric

Common

T..e

Webster

(Bids

Offering to stocknolders—Bids

Electric

May 28
Fuel

Read

& Co.

Common
11 a.m. EST) 89,322 shares

Sulzberger

<Sc

Co.)

$3,2CO,OOo

———Bonds

Ltd

Inc. and Dean Witter & Co.)

Herold

Radio & Electronics Corp
(Amos Treat & Co., Inc.) $800,000

Public

Service Electric & Gas Co
(Bids

a.m.

about $200,000,000

(Tuesday)

EST)

$50,000,000

$7,000,000

Deoenturea

Gas Co

Common
by The First

Debentures

Co.,

Common
by Morgan

underwritten

stockholder?—to

(Bids

(Wednesday)

Fischer & Porter Co
(Hallowuli,

Bonds
$15,000,000

invited)

Utilities Associates

Hawaiian

(Tuesday)
Co

Stanley & Co.)

11:30

June

a m.

EST)

$15,000,000

(Tuesday)

(Wis.)

Northern States Power Co.
(Bids

about $6,500,000

invited)

International Business Machines Corp
(Offering

National

Eastern

Bonds

to be

Common

135,315

Bonis
$14,500,000

EDT)

a.m.

May 21

stockholders—underwritten by White, Weld & Co.)

March

Florida Power & Light

Spokane Natural Gas Co
(Offering

Paso

Tne

stockholders and public—underwritten by
214,100

(Thursday)

...CommoiE

and

(Bids

stockholders—underwritten by
Corp.) ,74,175 ihari^s

Corp.

Common

[

May 15 '(Wednesday)

Boston

(Tuesday)

Co.

Power

Alabama

$7,500,000

Savannah Electric & Power Co
(Offering

Debentures

Co
$30,000,000

Bonds

Colorado Central Power Co
First

$2,700,000

invited)

May 9
v

Chicago, Burlington & Quincy RR—Equip. Tr. Ctfs.

(Offeting-

1,537,500 B shares

stockholders—Stone & Webster Securities Corp.
may be dealer-manager) 119,522 shares

$29,000,000

be invited*

and

Weld

Electric Power Co
to

CST)

noon

May

(Tuesday)

(Bids to be invited)

Common

426,988 A shares

Preferred

White,

(Tuesday)

El Paso Electric Co

$15,000,000

stockholders—underwritten
,, Sc
Co.) 300,000 shares

EST)

(Bids

Preferred

p.m.

(Bids

El Paso Natural Gas Co—...Convertible

March

Equip. Trust Ctfs,
$3,585,000

invited)

Northwestern Bell Telephone

(Offering
to

Minneapolis & St. Louis Rv—_Eauip. Trust Ctfs.

$500,000

El Paso Natural Gas Co

(Offering

(Monday)

General Aniline & Film Corp

Common

Well & Co.t

April 23

Bonds

Inc.)

$6,000,000

EST)

a.m.

(Bids

(Monday)

Distributors,

Bonds

Baltimore & Ohio RR

$250,000

Inc.)

(Thursday)

April

Equip. Trust Ctfs.

(Friday)

Gerber,

(Bids

$2,250,000

ESTi

Delaware Income Fund, Inc
(Delaware

April

$2J.OOJ.OOO

underwriting)

March

subordinated sink¬

due 1977. Price—To be supplied bv
V. Continued on page 40

Morgan

Mississippi Power Co

Transition Metals & Chemicals, Inc...

(Dillon.

•^Fischer & Porter Co., Hatboro,
Feb 28 filed $3,200,000 of convertible

(Bids

share#

1,507,304

EST)

(Offering to stockholders—to b" underwritten
Boston Corp. ) 581,537 shares

(letter of

underwriting)

Gas System, Inc.—I—

Bonds

Baltimore Gas & Electric Corp._

notification) 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.

(Tuesday)

April 3

Woid

Columbia

Machine Co., Inc

Ford Gum &

N. J. Underwriter-

Inc.

—Common
underwritten
shares

535,148

Co.)

Common

Electric

California

Debentures

Co.,

(Bids-noon

First

notification) 40,000 shares of common
Price—$5 per share. Proceeds—For machinery, equipment, working capital, etc. Address—Air¬
14

<fc

(Bids to be invited) 300,000 shares

Inc

stock (par $1).

(Monday)

April 2

SI.830.000

Pittsburgh & Lake Erie RR

En Flo Corp.

$6,000,000

(Thursday)

Securities Corp.)

Jan.

a.m.

FST)

noon

Industries,

(Bids

second pre¬

for
subscription by. common stockholders of record March
18, 1957, at a ratio to be determined at a later cate:
rights to expire on April 2. Price—To be supplied by
amendment.
Proceeds—To reduce bank loans and for
new
construction.
Underwriter — White, Weld & Co.,

ferred stock, series

EST)

a.m.

stockholders—no

Equip. Trust Ct/s.

(Lids

Appalachian

shares of convertible

612,260

$4,000,000

Ann Arbor RR—

Co., New York.

Common

(Bids to be invited) $6,000,000

amendment.

Pacific
-

Bonds

$250,000,000

...^..Common

(White,

stock, series of 1957
by

Co.;

stockholders—bids

El Paso Natural Gas Co.

Feb.

(Offering

Common

Co...

t«

lege); rights to expire on

Gas

Philadelphia Suburban Water Co
Southern

Berkshire

300.000

March 14

.(3/20)
Feb. 18 filed 89.322 shares of common stock (par S10)
/ to be offered for subscription by common stockholders
of record March 20, 1957 on the basis of one new share
Eastern Utilities Associates

-t

$300,000

Lazard Freres & Co.;,and White.

Co.)

•&

None.
>

Kidder, Peabody &
128,918 shares

Owens-Corning Fiberglas Corp

Feb. 21 filed 300,000 shares

(Thursday)

stockholders—to

$3,825,000

)

York.
-

11:30

Stanley

Equip. Trust Ctfs,

—

EST

noon

common

(Tuesday)

invited)

Wilcox

(Offering

Common

...dt.L./Common
Co.)

April 1
Babcock

Lynch, Pierce, Fenner & Eeanej

Shops of America,The

First Florida Investors, Inc.;
4,000 preferred

40,000

New Orleans Public Service Inc

.....

>62,200,000

stockholders—no underwriting)

Bonds

stockholders—underwritten

Merrill

1977.

Proceeds—For capital expenditures and

by amendment.

and

Co.)

•

$20,000,000

Co.)

Co.__Preferred & Common

Inc.;

March 28

of)

Florida Telephone Corp
(Offering

Dresser

Stanley

(Morgan

Alien

and

Houston Lighting & Power Co
(Ottering

(Wednesday)

(Commonwealth

American Telephone & Telegraph Co

Common

200,000

Fulton Reid

Common

Co.

and

(Bids

and

245,270 shares

snares

of New York.

March

$3,900,000

and Grimm & Co.)

Co.;

Debentures

Thrifty Drug Stores Co,, Inc
&

Hart,

Dillon, Union Securities & Co.) $12,500,000

(Blyth

Bros.

Co.

Inc.)

Winter Park Telephone

Common

Jackson &

Common
Inc.)

March

dealer-managers)

Forgan

S9.000.00C

New England Electric System

Debentures

Common

(Security Associates.

and, Savara &

$2,200,000

Co.)

& Redpath), $600,000

Otis,

Co.,

$1,250,000

& Co.

Common

Corp

Ulen Management

Commission__Debentures

(Shields & Co.; Halsey, Stuart

;

Common

Allen

and

Parker

(Gearhart

Debentures
(No underwriting)

Co.

Inc.__

Stouffer

Minneapolis Area Development Corp.

Moseley

$1).

$50,000,000

3,062

Bros.

200,000

of America

National Lithium Corp

Bonds

ESTi

a.m.

Brothers)

(Auchincloss,

Merchants National Bank & Trust Co.

(Exchange

Price—$5.50 per share. Proceeds—For working capital.
Name Changed—From Ulen Management Co. on Feb. 15.
Underwriter—Sutro Bros. & Co. and Allen & Co., both

000,000

CSTi

a.m.

Metro,

$3,950,000

..Common

CST)

Montreal Transportation

- v

Development Corp. of America (3/25-29)
Jan. 29 filed 400,000 shares of common stock (par
'

Byllesoy

Proceeds—For

market.
ware

Fund, Inc.

Income

Delaware

•

(Sutro

Common

Commonwealth Edison Co

—At
-

(Bids

1, 1962 or payable (without demand)

(Lehman

Development Corp.

Bayless (A. J.) Markets, Inc....

(letter of notification) $250,000 of 6% renewable
debentures (subordinated), payable upon demand) Feb.
Jan. 17

$4,350,000

(Tuesday)

Central & South West Corp

Consumers Time Credit, Inc.
1

EST)

noon

March 12

Common

Commea

Virginia Electric & Power Co
(Bids

be invited)

June

1,000.000 shares

(Thursday)

Beads

Georgia Power Co
(Bids

Bonds

$10,000,000

invited)

a.m.

$15,500,000

EDT)

Preferred
June

Debentures

(Tuesday)

Southern Bell Telephone &
(Bids

TeJe^ra^h Co

to be invited)

$70,000,000

Debs.

The Commercial and Financial
Chronicle

(1140)

Continued from page

working capital.

30
.

including

improvements and working capital.
Sulzberger & Co., Philadelphia,

capital

Underwriter—Ha Howell,
Pa.
Flakewood

Nov.
At

Corp., San Francisco, Calif.
shares of

100.000

filed

Price—

stock.

common

($10 per share). Proceeds—For construction of
manufacturing plant and to provide working capital.
Underwriter—None. Robert E. Evju is President.
Florida Telephone Corp.
offered

of record

common

subscription

stock

(par $10)

stockholders
1957 at the rate of one new share

12:

Employees

amendment.

shares.

Proceeds

—

Price—To

retire

supplied
of

SI.500,000

bank

for additions and

loans and

Under?

Electric

Light Co., Ltc.,

shares for each

new

seven

shares held; rights

expire on or about April 6, 1957. Any unsubscribed
6,000 shares to be offered to
employees, and the balance, if any, to the general public.
Price
To be supplied by amendment.
Proceeds — To
repay bank loans and for expansion and construction

shares plus the remaining

—

Underwriter—None.

program.

Jan.

406,638 shares of 50-cent convertible pre¬
ferred stock, series A (par $5) and 2,476.116 shares of
stock

common

ferred

and

(par 60 cents), of which1 all of the pre¬

763.011.3

stock

common

are

be offered

in exchange for Mount Vernon Co. preferred
common stock on the
basis of one Holly series A

improvements to property.
Kidder, Peabodv & Co. and Merrill
Lynch, Pierce, Fenner & Beane, both of New York.

and

^ Florida Trust,

for each of the 305,204.52 shares of

Underwriters

March
the

—

filed

Trust.

Pompano Beach, Fla.

850

certificates

beneficial

interest

irt

certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, seii
and convey lands and every character of real property.
Price—$1,000

per

Underwriter—None.

Food

Town, Inc., Washington, D. C
(letter of notification) 100,000 shares of 87c con¬
vertible preferred stock. Price—At par ($3 per share).

Feb. 1

Proceeds

—

To open and equip two new supermarkets.

Office—20 "CT St., S. E., Washington, D. C.

Underwriter

for

each

the

406,638

preferred stock and 2V>
stock.

mon

the

are

Mount

Vernon

shares of Holly common stock
Mount Vernon com¬

remainder, 210,000 Holly

offered

shares of Van Dorn Iron

Productions, Inc. '
(letter of notification) 30,000 shares of common
Price—$2 per share. Proceeds—For spe¬
cial building,
equipment and for working capital. Office
(par $1).

—Columbia, S. C.
Underwriter—Alester
Co., Inc., Greenville, S. C.

certain

Works Co.

common

holders

common

35,000

stock

Lone Star Gas Co.
Feb. 13 filed 154.834 shares
vertible

preferred

basis

funds to

Co., Inc. (3/15)
Dec. 18 (letter of notification) $250,000 of 6% first mort¬
gage bonds due 1962 to 1967, inclusive.
Price—100% of
principal amount. Proceeds—For machinery and work¬
ing capital. Office—Hoag and Newton Sts., Akron, N. Y.

Business—Manufacturing chewing
machines.

and self-service

gum

Underwriter—None.

Juices,

Inc.

Dec. 3

Price—At

working capital.

300.000 shares of

common

($1 per share). Proceeds — Fot
Office — 1115 South Washington St.,
par

Marion, Ind. Underwriter—Sterling Securities Co., Los
Angeles, Calif.
Fyr-Fyter Co.
March 4 (letter of notification) 3,300 shares of 6%
lative preferred stock.
Price—At par ($30

cumu¬

share).
Office—2 West
per

Proceeds—To two

selling stockholders.

46th St., New York 36. N. Y.

Underwriter—None.

General Aniline & Film Corp., New York (4 23»
Jan. 14 filed 426,988 shares of common A stock (no
par)
and

1,537,500 shares of

ceeds—To

the

B stock

common

Attorney

Geenral

(par $1).

the

United

Pro¬

States.

Underwriter—To be determined by competitive
bidding
Probable bidders: BIyth & Co.,
Inc.; Kuhn, Loeb &

Co.,

Lehman

Brothers, and

Glore,

Forgan & Co. (jointly);
Fenner & Beane and Eastman
Dillon. Union Securities & Co.
(jointly). Bids—To be
received up to 3:45 p.m. (EST) on April 23 at Room 654,
101 Indiana Ave., N. W.,
Washington 25, D. C.

Merrill

Lynch,

General

Pierce,

Public

Utilities

'eb. 6 filed 646,850 shares of

Corp.

(3/1 i)

common

First

Holy Land

Import Corp.,

Houston, Texas

Houston

(par $5) to
be offered for subscription by common stockholders of
record March 8, 1957, at the rate of one new share for
each 15 shares 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.]

Subscription warrants

to be mailed on or about

plied by amendment.
and

for

further

Underwriter

—

Proceeds

Gob Shops of

11.

—

are

expected

Price—To be sup¬

To repay

act

clearing agent.

America, Inc.

(3/13)

Jan. 21 (letter of notification)
240,000 shares of common
etoek (par 30 cents) of which 86,610
shares are being
«old pursuant to
outstanding warrants. Price—$L25 per
-ehare. Proceeds — For additional
discount department
jstore operation; to increase the number of
stores; and
for working capital. Office—41 Stukelv
R. I.

St., Providence,
Underwriter—Bruns, Nordeman & Co., New York,

Gold Mountain

Aug. 23
«tock

filed

Lodge, Inc., Durango, Colo.

5,000 shares

class

(par

voting

the

of Texas and Colorado in
units

2,950

class

debenture.
chase of

stock

shares of class A
and

one

$7,000
Proceeds—For pur¬

Price—$10,000 per unit.
property, remodeling of present

main building,
working capital. BusinessOperates year-round resort hotel.
Underwriter—None

for

new

construction

and

Hawaiian Electric Co.,
Ltd., Honolulu (3/20)
Feb. 27 filed $7,000,000 of first
mortgage bonds, series J,
due March 15, 1987.
Price—To be supplied bv amend¬
ment. Proceeds—For
construction program.
Underwriters
—dJillon. Read & Co. Inc.. New
York, and Dean Witter
dc Co., San
Francisco, Calif.

Tfr Herold Radio & Electronics
Corp. (3/20)
Feb. 27 filed 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

,e sold.to underwriter at

par and the

12,./CO shares issued to Alton Blauner
at par. Price—Of

preferred, $5

rate

one

per share.

remaining

finder's fee

Proceeds—For

new

for

each

share;.

per

held;

—

bank loans and for construction
program.
None.

Hub Oil Co.,

Underwriter—

Denver, Colo.

buy

413

leases;

First

for

National

Bldg.,

and

drilling. Office—
Denver, Colo. Under¬

writer—Skyline Securities, Inc., Denver,

lege).

Washington, D. C.
Sept. 28 filed $1,000,000 of time certificates, series
B, C

and D.

Price—At 100% of principal amount. Proceeds—
For working capital.
Underwriter—Johnston, Lemon &

Co., Washington, D. C.

Price—To

(with an oversubscription privi¬
supplied by amendment. Proceeds
and surplus.
Underwriters—J. H.

Inc., Boston, Mass., and Thornton, Mohr
Farish, Montgomery, Ala.

&
•

Manning, Maxwell & Moore,

Feb. 8

filed

71.390 shares of

Inc.

common

being offered for subscription by

expire

share.

per

International Capital Corp., Des Marines, Iowa
29 filed 370,000 shares of common
si«^ck (par 10
cents), of which 185,000 shares are to be offered by The
Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining
135,000
shares by Financial General
Corp. on a basis of 1%
one

International

share of Financial
to

are

tional

receive

common

Ing shares of

common

stock

stock.

common

exchange for
Equity and Finan¬

the

186,000 shares each of Interna¬
stock in exchange for all the
outstand-|

stock of Investors Financial
Corp.
and Group Equities, Inc. International
has been informed
that 142,000 shares of
Equity common owned by Fre¬
common

mont

Corp.. will be tendered in acceptance of the
Equity
exchange offer. Underwriter—None.
International Duplex Corp., San
Francisco, Calif.

Dec. 21 filed 500,000 shares of

cent).

Price—$1

share.

per

common

stock

(par

one

Proceeds—To

equip and
establish five super launderettes and for
working cap¬
ital.
Underwriters—Names to be supplied by amend¬
ment.

American

Industrial

Ltd.
Feb. 13 filed

Price

Development

Bank,

$2,500,000 of perpetual 6% debenture

110%

—

Israel

pounds

and

stock.

Proceeds—To be converted into

par.

will

used

working capital to
extend the medium and
long-term credits to enterprises/
in Israel.
Office—Tel Aviv, Israel. Underwriter—Israel
securities Corp., New York.
Jacobs

(F. L.)

Co.

Oct. 4 filed

$3,000,000 of 6% convertible debentures due
Nov. 1, 1966.
Price—100% of principal amount. Proceeds
—To pay short-term loans

derwriters—McLaughlin,
Otis, Inc., both of New

and for working capital. Un¬
Cryan & Co. and Gearhart A

York.

Offering—Date indefinite.

Juneau & Douglas
Telephone Co.
24 (letter of notification)
$295,000 of 6% 15-year
debentures due 1972.
Price
At face amount (in de¬
nominations of $1,000 each). Proceeds — For additions
and improvements.
Office—139 W. Second Street, Ju¬
neau. Alaska.
Underwriter—Grande & Co., Inc., Seattle,
Wash.
Jan.

—

IKing Soopers,
to

filed

offered
on

record

the

March

Inc.,

general corporate purposes.
& Co., New York.

for

of common stock (par $1)
subscription by common stockholders
outstanding stock purchase war¬

certain

basis

one

may

share for

for each share

under such warrants.
—To equip and stock

that

For

one

share for

new

March 13.

Price

working capital.and

Underwriter—Clark, Dodge

Theatre, Griffithsville, W. Va.
of notification) 3,000 shares of
class

(letter

stock and

common

4,000 shares of class B

Price—$25 per share.

common

stock,

Underwriter—None.

Mortgage Fund, Inc., Washington, D. C.
note certificates. Price—Afc

Feb. 8 filed $1,000,000 of 8%

(in denominations of $250 each).

par

vestment.

through

Underwriter

officers

Merchants

made

Acceptance Corp.

filed 40,482

par)

Proceeds—For in¬

Offering to

employees of this company and
affiliate, Mason Mortgage & Investment Corp.

of its

Jan

None,

—

and

shares of class A

common

stock

being offered for subscription by class A

(no

common,

one

March

12.

Price

—

$25

per

share.

Proceeds

—

For

working capital, to be used primarily to expand business
in the existing 38 loan offices of
company's subsidiaries
or to
open or acquire additional offices.
Office—Wor¬
Underwriter—G. H.

Walker &

dence. R. I.; New York. N. Y.; and St.

it Metro, Inc., Baltimore, Md.
March

filed

$600,000

Co., Provi¬
Louis, Mo.

(3/25)

convertible

subordinated

debentures due March 31,

1967. Price—100% of princi¬
Proceeds—For working capital. Business—
Financing of automobiles and durable consumer goodSy.
etc.

Underwriter

—

Auchincloss,

Parker

Redpath,

Washington. D. C.

Michigan Wisconsin Pipe Line Co.
July 2. 1956 filed $25,000,000 of first mortgage pipe line
bonds due 1976.
Proceeds—To pay off short term bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders;

Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4^4S. but were turned down. Reoffering is
expected sometime during the first six months of 1957.
•

Minneapolis Area Development Corp. (3 12)
19 filed $1,000,000 of 4% sinking fund income'de¬
bentures due March 1,1972, and 25,000 shares of common
Feb.

stock

(par $1)

tures and

one

be offered in units of $40 of deben¬

share of stock.

Price—$50 per unit.

Pro¬

ceeds—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¬
Office—Minneapolis, Minn. Underwriter
—None. Philip B. Harris (Vice-President of Northwest¬
ern National Bank of
Minneapolis) is President.

acquired.

Price—$3.25
a

each

Minnesota Power & Light Co.

(3/11)

Feb. 8 filed $12,000,000 of first mortgage bonds due 1987.
Proceeds -— To repay bank loans and for construction

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and Merrill Lynch, Pierce,.
Fenner & Beane (jointly); White, Weld & Co., Shields
& Co. and Equitable Securities Corp.
(jointly); Lehman
Brothers and Drexel & Co. (jointly); Kuhn, Loeb &
Co.;
program.

tive

Eastman

Dillon,

Bros.

Hutzler

ll :30

a.m.

York

(EST)

Union

Securities

(jointly).
on

Co.

and

Salomon

Bids—To be received

up to¬
March 11 at Two Rector St., New

;

ir Minot Builders Supply Association
Feb. 27
(letter of notification) 90 shares of common
stock.
Price—At par ($1,000 per share). Proceeds—For
working capital.
Office—1667 Snelling Avenue North,
St. Paul, Minn. Underwriter—None.

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.
Dec. 26 filed

Denver, Colo.

263,048 shares

and holders of

rants

—

(par $12.50)
stockholders

porate purpose.

Israel

Feb.

Proceeds

stock

common

pal amount.

Nov.

cial

The

for

increase capital
Goddard & Co.,

cester. Mass.

Colo.

International Bank of

—

expire

exploration
Bank

Proceeds—Together
Underwriter

stockholders of record Feb. 15. 1957 on the basis of
hew share for each three shares held:
rights to

Dec. 18 (letter of notification) 290.000 shares of
common
stock (par 10 cents,).
Price—$1 per share.
Proceeds—
To

1957

bank debt of $20,000,000 in¬

repay

—To

Mason

each three shares held

(3 26)

April 15. The remaining 53,500 shares
be offered for subscription
by employees. Price—
supplied by amendment. Proceeds
To reduce

are

common

$1), 295,000 shares of class B
non-voting
common stock (par
$1), and $700,000 of 4% debentures
due Dec. 31,
1975, to be offered for sale in the States
stock,

Lighting & Power Co.

filed

665,760 shares of common stock (no par),
of which 612,260 shares are to be offered for
subscrip¬
tion by common stockholders of record March 25.
1957

bank loans

domestic

subsidiaries.
Merrill Lynch, Pierce, Fenner &

Beane, New York, will
•

March

investments

None.

con¬

subscription

(par $1)
subscription by common stockholders
la, 1956 at the rate of one new share for

offered

of record Oct.

• Marietta

Feb.

for

LoyaJ American Life Insur. Co., Inc.
Sept. 28 filed 230,000 shares of common stock

Feb.

(letter of notification) 100.000 shares of common
Price—At par ($3 per share). Proceeds—For in¬
ventory, working capital, etc.
Underwriter—Benjamin
& Co., Houston, Tex.

cumulative

March

—$21

exchange for 64.696 shares of Van Dorn
Iron Works common stock.
Underwriter—None. >"

stock

record

future date

Fqrman

of preferred stock for each
40,
rights tc exoire on March 25.

of record March 1, 1957 at the rate of
each 10 shares held:
rights to

rights to expire

(letter of notification)

ctock.

4.84%

against conversion of preferred stock; and the remain¬
ing 388,176 are to be reserved for possible issuance at a

Fruit

construction program.
Boston Corp., New York.

stock.

Ford Gum & Machine

being offered

for

Feb. 27

—Rudd, Brod & Co., Washington, D. C.

held;
($100

par

other

curred

one

common

stock

stockholders

common

the

six-for-one basis; 38,333 Holly common shares will be
offered to certain finders, 60.000 shares to certain ven¬
dors
of
property:
1,016.595
shares will
be
reserved

•

with

filed

Thursday, March 7, 1957

stock

Price—At

Holly Corp., New York

Leslie

Jan.

Hilo, Hawaii
Feb. 7 filed 51,380 shares of common stock (par $20), of
which 45,320 shares are to be offered for subscription
by common stockholders of record March 5. 1957 at the

common

rights to expire on April 1.
subscribe for not more than 3,0)0

may

unsubscribed

the

for

March

three shares held;

for each
1957.

(3 13?

128.918 shares of

filed

Feb. 21
to

Hilo

rate of two

par

Office—Mount Vernon, N. Y.
Inc., New York.

writer—Amos Treat & Co.

Proceeds—For general corporate purposes,

amendment.

held

subject to purchase
per share.
Proceeds
.

warehouse and any new stores

Underwriter—Peters, Writer
Christensen, Inc., Denver, Colo.

Price—$3 per share.

provide for

general

Proceeds—For completion of plant,
and for working capital.

creditors

Office—Jackson, Miss. Underwriter—None, offering
be made through company's own agents.
Monticello

Associates, Inc.

Feb. 18 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds — For

capital

expenditures,

including

construction

motel,

•"

Volume

5618

Number

185

station. Business—Has been
Office—203 Broadway,;
Underwriter—Walnut Securities Corp.,

roadside restaurant and gas

processing and selling ot gravel.
Monticello, N. Y.

panakis, of Miami, Fla., and Denis Colivas, of Montreal,
Canada, are large stockholders.

Feb.

•

Price—To

Montreal Transportation

Commission (3/12)
Feb. 19 filed $9,000,000 of sinking fund debentures due
March 15, 1977.
Price—To be supplied by amendment.
Proceeds—For equipment and improvements, etc. Un¬
derwriters—Shields & Co., and Halsey, Stuart & Co. Inc.,
koth of New York; and Savard & Hart, Inc., Montreal,
'

it Morrell
March

& Co., Chicago, 111.
shares of capital stock

(John)

filed

(par $10),
exercise of options granted to key
management personnel pursuant to company s restricted
stock option plan; also $5,000,000 of employee savings
to

22,584

issuable

for

notes

sidiaries.

Lithium

concentration

oil

Under¬

Philadelphia Suburban Water Co.

A common stock

stockholders. Office — Little Rock, Ark.
Equitable Securities Corp., Nashville,
New York, N. Y. Offering — Indefinitely

and

it Pioneer Fund, Inc., Boston, Mass.
amendment) 1,000,000 additional shares

Feb. 28 filed (by
of

•

Rubber

(3/8)

Machinery Co.

9,778 shares of common
subscription by common
March 7, 1957, on the basis of

(letter of notification)

stockholders

record

share for each 20 shares held; rights to expire

new

Subscription certificates are expected
to be mailed on March 8. Price—$27 per share. Proceeds
—For general corporate purposes.
Office—47 West Ex¬
change St., Akron, Ohio. Underwriter—None.
;

April 1, 1957.

Brunswick

New

Dec.

14 filed

Price—To be supplied by -amend¬

1, 1982.

Proceeds—To
Electric

wick

(Province of)

$12,000,-000 of 25-year sinking fund deben¬

tures due Jan.

ment.

advanced

Commission

Power

The

New

Bruns¬

bank loans.
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Temporarily delayed.
New England Electric System
Dec.
to

Electric

for each Lynn
Jackson

Co.

share.

Curtis

basis

the

(par $1)
of Lynn

NEES

two

Dealer-Managers—Paine, Webber,
F. S. Moseley & Co., both of

and

Boston, Mass.
New

Orleans

Feb. 15 filed

Public

Service,

Inc.

(3/28)

$6,000,000 of first mortgage bonds due 1987.-

Proceeds—For
foe determined

construction

program.

Underwriter—To

by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld & Co.; Blair &
Co. Incorporated; The First Boston Corp.; Equitable Se¬
curities Corp. and Eastman Dillon, Union Securities &
(jointly); Kuhn, Loeb & Co. and A. C. Allyn & Co.

Co.

(jointly); Kidder, Peabody & Co. and Stone & Web¬
Securities Corp. (jointly); Lehman Brothers. Bids
—Tentatively expected to be received up to 11:30 a.m.
(EST) on March 28.
Inc.

ster

New

York

Shipbuilding Corp., Camden, N. J.
Jan. 24 filed 211,254 shares of common stock (par $1).
Price—To be related to the prevailing price on the New
York Stock Exchange at the time of sale.
Proceeds—To

Merritt-Chaprhan & Scott Corp., the selling stockholder.
Underwriter—None.
/

Statement effective Feb.

28.

for

Price—At par

13 filed

(no par),

547,678 shares of common stock

540,651.75 shares are to be offered for subscrip¬

Gas & Electric Co. common stockhold¬
ers on the
basis of one Pittsburgh Rys. share for each
four Standard Gas shares held. The subscription period
will
be

run

for

Price—To

period of not less than 21 days.

supplied by amendment (expected to be $6 per share,

dividends paid on the Pittsburgh Rys.- stock
after Oct. 19, 1956). Proceeds—To Standard Gas & Elec¬
tric Co.
Underwriter
None.
Standard Shares, Inc.,
owner
of 45.59% of Standard Gas common stock, will

less

stock.

Under¬

any

—

(letter of notification) 225,000 shares of common

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.

stock ,par one

—

Power Co.

Sept. 20 filed 60,000 shares of cumulative preferred stock

Proceeds—For construction program. Under¬
by competitive bidding. Prob¬
bidders; The First Boston Corp.; Blyth & Co., Inc.;

(par $100).

ard Gas stockholders.

Plymouth Fund, Inc., Miami, Fla.
5 filed 500,000 shares of capital stock
(par $1).
Price—At market.
Proceeds—For investment. Under¬
Plymouth Bond &

Share Corp., Miami, Fla.

Service

Public
Feb.

Electric

filed $50,000,000

& Gas

(3/20)'

Co.

of debenture bonds due March

For construction program. Under¬
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Lehman Brothers (joint¬
ly); Morgan Stanley & Co. and Drexel & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EST) om
Proceeds

1, 1977.

—

writer—To be determined by

Co.; Eastman Dillon, Union Securities & Co.
Hutzler (jointly); Harriman Ripley

20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬

tions, Inc.; and for working capital.
Business—Tele¬
vision releases. Underwriter—E. L. Aaron & Co., New

Knitting Mills

(letter of notification) $296,600 of 20-year 6%
debentures due March 1, 1976. Price—At par. Proceeds
19

Ave., New York, N. Y.
Orefield
Oct.

15 filed

cumulative"

pre¬

Office—350 Fifth

Underwriter—None.

Mining Corp.,

Montreal, Canada

900,000 shares of capital stock (par $1), of

outstanding. Price—To be
Proceeds — For exploration

which 200,000 shares are now

supplied by amendment.
costs.
Underwriter—To be named later,

including geological research and
to exercise purchase of

drilling,

core

for mining shaft;

assays;

option agreement on additional properties; for working
capital and other corporate purposes.
Underwriter —
Indiana State Securities Corp. of Indianapolis, Ind., for
offering to residents of Indiana.
Electric & Power Co.

Savannah

(3/19)

stock (par $5),
for subscription
by common stockholders of record March 18, 1957 on
the basis of one new share for each six shares held (with
an oversubscription privilege); rights to expire on April
1, 1957. The 50,766 remaining shares are to be offered
for the account of selling stockholders.
Price — To be
supplied by amendment. Proceeds—From sale of 163,334
shares of common stock and from private sale of 20,000
shares of $100 par preferred stock, to be used to/repay
bank loans and for construction program. Underwriter®
filed

Feb.

214,100 shares of common

163,334 shares are to be offered

of which

Corp. and Stone & Webster

—The First Boston

Corp., both of New York.
Carolina

South

Feb. 4 filed 336,085

Securities

Electric & Gas Co.
shares of common stock (par

$4.50)

being offered for subscription by common stockholders
of record Feb. 26, 1957 on the basis of one new share for
each 10 shares held (with an oversubscription privilege);
rights to expire March 12,
Proceeds

—

Southern

1957. Price—$18.25 per share.

construction

For

Peabody

Kidder,

program.

Underwriter —

Co., New York.

(3/13)

Co.

1,507,304 shares of common stock (par $5)
to be offered for subscription by common stockholders
of record March 13, 1957 on the basis of one new share
for each 13 shares held; rights to expire on April 4, 1957.
Price—fTo be fixed March 12. Underwriter—To be de¬
15 filed

Feb.

termined by

competitive bidding. Probable bidders: The
Stanley & Co.; Kidder, Pea¬

First Boston Corp.; Morgan

Merrill Lynch, Pierce, Fenner &

Beane

(jointly); Lehman Brothers; Eastman Dillon, Union Se¬
Co. and Equitable Securities Corp. (jointly).
Bids—To be received up to 11 a.m. (EST) on March 13
at 250

Raymond OH Co., Inc., Wichita, Kansas
29 filed 200,000 shares of common stock

—For

Dec.

filed

(par 25

Price—To be supplied by amendment. Proceeds
exploration, development and operation of oil and

properties. Underwriter—Perkins & Co., Inc.,
'

•.

Atlanta, Ga.
stock, of which

486,000 shares of common

shares are to be publicly offered and 111,300
to be reserved on exercise of options to be

375,000

granted to employees of the company (latter exercisable
on or before Dec. 31, 1956).
Price—$3 per share. Pro¬

goods
Underwriter—
Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the
underwriter, are officers and directors of Southern

ceeds—To

buy

establish a complete sporting

house; other expansion and inventories.
Investment Underwriters, Inc., Atlanta,

Ga.

Sportsman, Inc.

•

Ltd., Toronto, Canada

Aug. 24 filed 750,000 shares of capital stock (par
Price—64^ cents per share. Proceeds—To selling stock¬
holders.

Underwriter—None.

Southwide Corp., Anniston, Ala.

Sept. 12 filed 450,635 shares of common stock (par $1),
211,681 shares are to be offered publicly 238,954
shares are to be offered in exchange for the class A

of which

stock of Capital

Fire & Casualty Co. and common

stock

Price—$2 per share. Pro¬
stock of Capital and Allied firm*
and for purchase of U. S. Government bonds. Underwriter—None, but a selling commission will be allowed
to dealers for sales effected by them.
Elvin C. McCary.
of Anniston, Ala., is President.
Allied

Investment Corp.

ceeds—For purchase of

Jan.

cents).

Park Ave., New York, N.

Southern Sportsman, Inc.,

York.

Dallas,

•*

Raytone Screen Corp.

of common
stock (par 10 cents).
Price—$3.25 per share. Proceeds
—To reduce debt, for purchase
of inventory and for
working capital. Office—165 Clermont Ave., Brooklyn,
Feb.

(letter of notification) 50,000 shares

Underwriter—J.

Emanuel

& Co., Inc.,

Jersey

it Roberts Co., Sanford, N. C. (3/20)
190,000 shares of common stock (par

Feb. 28 filed

which

150,000 shares are to be sold for

$1), of
account of com¬

Price—
reduce
outstanding obligations and for working capital. Under¬
writer—Straus, Blosser & McDowell, Chicago, 111.
and 40,000 shares for selling stockholders.
To be supplied by amendment.
Proceeds — To
pany

•

Rochester Telephone
15 filed

Corp.

(par $10)

195,312 shares of common stock

rights to expire on March 25. Price
Proceeds — To reduce bank loans.

—$15.50

outstanding 6%

$1).

Pyramid Productions, lnc„ New York
Sept. 27 filed 220,000 shares of common stock (par $1),
of whioh 200,000 shares are to be offered to public and

each five shares held;

$292,550

core

Southern Union Oils

Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected.

and for working capital.

■>

Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price—At par (10 cents per share). Proceed®

March 20.

and Salomon Bros. &

stock

Inc., Denver, Colo.

shares are

Joseph A. Ray vis, also of Miami, is President.

being offered for subscription by common stockholders
of record March 6, 1957 at the rate of one new share for

redeem

Samson Uranium,

Feb.

able

ferred

remaining 7;026.25 shares not offered directly to Stand¬

Feb.

—To

writer—None.

curities &

writer—To be determined

Oneita

Rushmore Lumber Co., Rapid City, S. D.
(letter of notification) 125,000 shares of commonPrice—At par ($1 per share). Proceeds—For pur¬
chase of stumpage rights and for working capital. Under¬

body & Co. and

City, N. J.

it Nyvatex Oil Corp.

Feb.

purchase all shares of Pittsburgh Rys. to which it is en¬
titled to subscribe, plus any unsubscribed share and the

writer—None.

Kuhn Loeb &

(114D

«;,v/

Sperti Products, Inc., Hoboken, N. J.
29 filed $745,300 of 6% debentures due
1972 and 14,906 shares of common stock (par
offered in units of a $100 debenture and two

March 1,
$1) to foe
shares of
stock, of which $545,300 of the debentures and 10,906
shares of stock are to be offered first in exchange for
the 54,530 outstanding shares of 5% cumulative con¬
vertible preferred stock (par $10) at the rate of one new
unit for each 10 shares of preferred stock. The remain¬
ing $200,000 of debentures and 4,000 shares of common
stock are to be publicly offered.
Price—$100 per unit.
Proceeds—For general corporate
purposes, including
working capital and for redemption of any unexchanged
preferred stock. Underwriter—Smart, Clowes & Oswald,
Inc., Louisville, Ky. Offering—Expected shortly.
Spokane Natural Gas Co. (3/19)
Feb. 18 filed 135,315 shares of common stock (par $1)
to be offered for subscription by common stockholders
at the rate of one new share for each three shares held
as of March 19, 1957; rights to expire on April 2.
Price-

Jan.

($10 per share). Proceeds — To liquidate
$178,635; increase inventories; and for

working capital and general corporate purposes.

Ohio

Co., New York.

Pittsburgh Rys. Co., Pittsburgh, Pa.

gas

loan

Feb. 26

Underwriter—Eastman Dillon,

expansion program.

Union Securities &

75,000 shares of 5% cumulative participat¬

ing preferred stock and 7,500 shares of common
bank

(3/12)

private placement
of $22,000,000 of first mortgage bonds, will be used to
refund all but $1,000,000 of company's funded debt; and

Tex.

Nic-L-Silver Battery Co., Santa Ana, Calif.

Dec. 27 filed

Co.

Gas

$12,500,000 20-year sinking fund debentures
be supplied by amendment.
Pro¬

ceeds—Together with proceeds from

writer '<•—

(3/12)

819,000 shares of common stock
offered in exchange for capital stock

Gas

repay

filed

Natural

Price—To

1977.

tion by Standard

stock (par $10) to be offered for

one

Proceeds—For in¬

Pioneer

Feb.

National

Price—At market.

capital stock.

vestment.

of which

Underwriter—Drexel &

—

postponed.

Feb.

construction.

new

Co., Philadelphia, Pa.

due

selling

Tenn.,

Underwriter—Market Securities,

$nd gas properties.

Feb. 19 filed

(par $2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Proceeds
Underwriter

Utah

(3/13)
Feb. 19 filed $4,000,000 of first mortgage bonds due 1987,
and 20,000 shares of preferred stock (par $100). Price—
To be supplied by amendment. Proceeds—To repay bank

National Old Line Insurance Co.

—To

Salt Lake City,

Inc., Salt Lake City, Utah.

writer—Gearhart &

Nov. 15, 1955 filed 50,000 shares of class

Corp.,

:■

Feb. 21

—For

Production

filed

1,000,000 shares of common stock (par $1).
Price—$1.25 per share. Proceeds—For drilling test wells
and general corporate purposes.
Business—To develop

Corp., New York

plant, mining equipment, etc.
Otis, Inc., New York.

and working capital. Underwriters
& Co., Lazard Freres & Co., and

Sachs

Paradox
Feb.

the Yellowknife properties; and for cost

(par $1).
Proceeds — For

White, Weld & Co., all of New York.

(3/25-29)
Feb. 19 filed 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

(3 ,13)

supplied by amendment.

loans and for

National

Corp.

stock.

300,000 shares of common stock

—Goldman,

—None.
•

18 filed

expansion program

upon

employees of company and its domestic sub¬
Proceeds—For working capital.
Underwriter

Fiberglas

Owens-Corning

Philadelphia, Pa.

Canada.

The Commercial end Financial Chronicle

Michael Tzo-.

per

share.

To be

bank

supplied by amendment.
loans, for construction

Underwriter—The First Boston Corp., New York.

White, Weld & Co., New

Mountain Research, Inc.
Feb. 8 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital and market research.
Office—625
Broadway Bldg., Denver, Colo.
Underwriter — G. R.

Proceeds—Together with
program. Underwriter—

it Spokane,

Rocky

Harris & Co:, Denver, Colo.

^Price—
Proceeds—For sitp improve¬

($100 per share).
buildings in Israel; for process• equipment
and machinery; for utilities; working capital; and other
par

ments

and

corporate/purposes.

Corp., Cleveland, Ohio (3/25)
of common stock (par $2.50),
shares are to be sold for account of
certain selling stockholders and 90,000 shares for the
company. Price—To be supplied by amendment. Proceeds
Continued on page 42
it Stouffer

it Rogosin Industries, Ltd., New York
March 1 filed 75,000 shares of common stock.
At

York.

Portland & Seattle Ry. (3/20)
Bids are expected to be received by the company on
March 20 for the purchase from it of $3,700,000 of equip¬
ment trust certificates. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.

Underwriter—None. -■

March 5 filed 245,270 shares
of

which

155,270

(1142)

The Commercial and
Financial Chronicle

Continued from page 41

share for each 16 shares held;
14.

—To pay short-term notes, to reimburse the

treasury for
expansion costs, and to equip three restaurants. Under¬
writers

West

Reid & Co., Inc., Cleveland, Ohio.

debentures

two-year maturity

(the

the

and

of 6%

$300,000

debentures

and

have

stock

than

Fuel Corp., Clarksville, Texas
(letter of notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
To pay bank loans,
financing of time payment salei

Inc.,

New

York

not less than 25

fields.

shares; of class B, expected at

investment

Business—A

theatrical

and

City

Pro¬

par.

entertainment

non-diversified closed-end manage-,

ment investment
company.

Underwriter—None.

stock

raon

(par 10 cents).

380,000 shares of

Price

75 cents

—

Feb.

Drug

Stores

Co.,

Inc.

per

com-'

share.

(3/12)

filed 200,000 shares of common stock (par 50
Price—To be supplied by amendment. Proceeds
selling stockholders. Underwriter
Blyth & Co.,

cents).
—To

Tower Acceptance
Corp.

common

stock

Underwriter—S. D. Fuller & Co.,

Statement effective

Feb.

20.

Trans-Gulf Offshore Drilling, Inc.
Jan. 24 filed 700,000 shares of common

cents).

Price

—

per

share.

Proceeds

—

(par

For mobile
and

contin¬

Underwriter

•

Transition Metals &
Chemicals, Inc. (3/15)
Jan. "22 filed
1,615,500 shares of common stock and
1,126,500 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 unit. Proceeds—For
construc¬
plant

and

other

facilities; for equipment; and
working capital. Office—Wallkill, N. Y. Underwriter—
M. S. Gerber, Inc., New York.
/- *
.

Tri-State

Rock

Material

Corp.,

Leesburg, Va.

Nov. 28 filed 500,000 shares of 6% cumulative
convertible
preferred stock; Price—At par ($1.50
per share).
Pro¬
ceeds

for

each

27.

five

Price—$6

held; righ'.s

share.

per

Probable

Mountain

filed

Corp., Boston,

$800,000

stock

(no par) to be offered in units of
ture and three shares of stock.
Price

ness—Mountain
otiering

and

working capital. Bus!-/
center.
Underwriter—None;

recreation

be made

deben¬

$500 per unit.

—

construction

common

$400

by officers and

agents of company/

Williamson Co.,

Cincinnati/ Ohio
(letter of notification) 23,307 shares of class B
stock (par $1) to be offered for
subscription by

March

25, 1957.

Price—$8.56 per share. Pro¬

ceeds—For working capital.

Cincinnati, Ohio.
28

filed

bentures

Office—3500 Madison Road,

Underwriter—None.

$20,000,000

due

1976.

Proceeds

ment;

20-year

Price—To

granted options to acquire the
remaining 500,000 shares

sinking fund

supplied

de¬

amend¬

redeem

Co.,

Inc.,

New

York.

indefinite.
•

packing

firm.

Un¬

Indefinitely postponed.
•

Winte** Pari" THe«'v>»-e Co** (3/25-29)
14 filed 40,000 shares of common

Feb.

~—

stock/(par $10)

and

shares of cumulative preferred stock
(par
be offered in units of 10 common shares and

preferred

ment.

share.

Price—To

supplied

by amend¬

Proceeds—To repay bank loans and for
expansion

program.
ter Park,
Eache

Underwriters—Security Associates, Inc., Win¬
Fla.; First Florida Investors, Inc., Orlando, Fla.,
Co., New York, N. Y.; and Grimm &
Co.,

Orlando, Fla.-

•

it Universal

Offering—Date

The

—

First

Boston

machinery,

Products Corp.
notification) 150,000 shares of common
Price—$2 per share. Proceeds—
equipment, expansion, inventory and
Office—50

Underwriters—Milton

Bond

Blauner

St.,

Westbury,'N.

Co., Inc.; Michael
G. Kletz &
Co., Inc.; Stanley Heller &
Co.; and Aetna
Securities Corp.; all of New York
City.
Vanderbilt Mutual
Fund, Inc., Los
Dec. 31 filed 50,000 shares of

Angeles, Calif.
stock
(par $1).
investment. Under¬

common

Price

market.

Proceeds

—

For

writer—Vanderbilt Mutual Fund
Management Corp
Spring St., Los Angeles 13, Calif.

So.

458

Venezuela

Diamond Mines,
Inc., Miami, Fla.
Aug. 31 filed 1,500,000 shares of common
stock. Price—

At par

(20 cents per share).

and

Proceeds—For exploration

mining operations in Venezuela! Underwriter
Co¬
lumbia Securities
Co, Inc., of Florida (name
changed to
Alfred D. Laurence &

Co.), Miami, Fla.

Venezuelan Sulphur
Corp. of America (N. Y.)
Jan. 29 filed
150,000 shares of common stock
(par
cents)
Price—At market, but not less
Proceeds—For mining
operations.
West
Jan.

Penn
filed

being offered
record

Feb.

50
than $3 per share.

Underwriter—None.

for

26,

common

stock

(par $5)

subscription by common stockholder's
1957, on the basis of one additional

offer

its

right to sub--

purchase

determined

Underwriter

in March.

any

un-

None.;

—

■

Co.

and

••

stockholders

announced
a

class

new

May

100,000

(par $100)

and

will

of-

snares

imreas--

General

Tire

Rubber

Co.

1956/

Dilion,

—

financing.

California Electric Power Co.

(4/9) ;•
*
Feb;,25 it was announced company plans to-issue and
$6,000,000 of first mortgage bonds due '.19#7; Pro-.,
ct-eds
To repay bank loans.
Underwriter -'- To De-J*
.

sell

determined, by competitive bidding.
Probable bidders:.
Halsgy, Stuart & Co. Inc.; Kidder, Peabody & Co./Wihtcy

Weld &

Co.;.Lehman Brothers and Dean Witter 6c
(jointly)r Bids—Expected to be received on April 9.
Central

Hudson

Gas

reported

following

this

Co.
T

Electric

ible stock

(par $1). Underwriter—Baker, Simonds & Co.,

Detroit, Mich.

Offering—Expecte<ji in March.
Inc., Emmaus,

reported company may offer to its com¬
stockholders some additional common shares.
Un¬
derwriter—Reynolds & Co., New York.
Alabama
21

Power

was

Co.

(5/9)

Central

announced

plans to issue and

company

sell

$14,500,000 first mortgage bonds.
bank loans and for

—To

determined

new

Proceeds—To

construction.

competitive

re¬

Underwriter

bidding.

Probable
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
up to 11 a.m. (EDT)
on May 9/ Registration—Planned
for April 12.
•

Ann

Halsey,

Arbor

Bids

will

New

Stuart

RR.

Co.

Inc.;

(3/14)

York

for

received by the company at 44 Wall
St.,
5, N. Y., up to noon (EST) on March 14
purchase from it of $1,830,009 equipment trust

the

certificates dated

April 1, 1957 and due in

15 equal in¬
Stuart & Co. Inc.;
Presspricii & Co.; Baxter

stallments.

Probable bidders:
Halsey,
Salomon Bros. &
Hutzler; R. W.

Co.

•

Stanley & Co., New York.

Baltimore

Feb.-28

Gas

was

Electric

announced

that

contemplating sale of
previously been reported

under

"Securities

offering
common

not

Now

Co.

any

mortgage
these

Reg:stration"

not

bonds,

columns.

for

exceeding 581,537 additional
stock to company's stockholders.

that

issue privately; last preferred stock issue also placed
privately; with common stock locally or to stockholders,
without underwriting.
In 1954,. a convertible debenture
offering was underwritten by Kidder, Peabody & Co. -

Central
Dec. 31,
the
in

Maine

Power Co.

W. F. Wyman, President, announced that "while

company

1957,

Bank loans

expected to do some permanent financing
definite plans have yet been worked out.

outstanding at the year end totaled $10,500,expenditures for 1957 are now esti¬

Construction

000.

mated

between

$19,000,000 and $20,000,000. It is esti¬
$5,500,000 of the amount needed for this pro¬

will be supplied from internal cash with the bal¬
to

supplied from outside

sources.

Underwriters

offer

stock

common

underwritten

bonds may include: Halsey, Stuart & Co. Inc.; Blyth
Co., Inc. and Kidder, Peabody & Co. (jointly); The
First Boston Corp. and Coffin & Burr, Inc.
(jointly)'r
Harriman, Ripley & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly); Salo¬
any

& Hutzler.

Bros.

Chicago, Burlington & Quincy RR.

See

proposed
snares

(3/19)

Bids will be received by company up to noon
March
ment

the

for

trust

(EST) on
purchase from it of $7,500,000 equip¬

certificates
Probable

Salomon Bros.

in 30

due

bidders:

equal semi-annual in¬

Halsey, Stuart & Co. Inc.;

& Hutzler.

Cincinnati, New Orleans & Texas Pacific Ry.
March 4
It was reported that trie company
plans
issue

sell

and

tificates.

Bros,

Cleveland

Nov. 12 it
1957.

$4,200,000 of equipment trust

bidders:

Halsey, Stuari

Co.

cer¬

Inc.;

Hutzler.

Electric

was

$25,000,000
tion

about

Probable

Salomon

reported

Illuminating Co.
plans to issue and sell

company

first mortgage

bonds in the Summer of
bank loans and for construc¬

Proceeds—To repay

Underwriter—To be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston Corp.;, Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams
&
Co.
(jointly); Glore, Forgan & Co.; White,
program.

Weld

Co.

Coastal
Dec.

28,

Transmission

the

FPC

Corp.,

authorized

this

Houston, Tex.
corporation

build

miles

pipeline to cost approximately $54,589,000
from a point in Hidalgo County, Tex., to the point of
tern in East Baton Rouge Parish, La.
Underwriters—May
be Lehman Brothers and Allen &

Columbia
Feb.

announced

Inc.

Co., both of New York.
(4/3)

corporation plans to issue and

public 1,500,000 shares of

Underwriter—To

bidding.

Fenner

prich

System,

common

stock

(no

Proceeds—For financing construction work of sub¬

sidiaries.
tive

Gas

was

the

par).
company

Inc.

the company plans somefinancing in, 1957. Proceeds—For $12,—
construction program. Underwriters — Kidder,
was

Peabody & Co. and White, -Weld & Co. placed last bond

sell

the

Electric Co.,

reported

any

debt and equity

574

Babcock & Wilcox Co.
(4/1)
Feb. 21 the directors
approved a plan to offer 535,143
shares of capital stock to stockholders of
record March
29, 1957 at the rate of one new share for each 10 shares
held; rights to expire on April 15. Underwriter—Mor¬
gan

Louisiana

stalments.

•

pay

Proceeds—For,

debt secu¬
rities, Kidder, Peabody & Co.; for common siock, Kiacrer,.
Peabody & Co. and Estabrook & Co., both of New York.,

mon

Pa.

was

mon

Jan.

stock).

common

Underwriter—For

(first to stockholders) may*
by Harriman, Ripley & Co. Inc., The
First Boston Corp. and Coffin & Burr, Inc. Bidders for

First

(two-thirds in debt securities and.

construction program.

(to

company

merger

securities

new

the balance from sale of

—Any

Irwin

Pro¬

later.

Read & Co., Inc., New York,.
handler previous preferred stock financing, wJiile Kid-"
der, Peabody & Co. underwrote General lire & Rubber.

ance

be surviving
Mortgage Corp.
Jacobs & Co. of
Chicago) plans a public
offering of $1,000,000 class A 6%
participating convert¬
corporation

had
of

may

bank loans.

preference stock

Undfefwriter

mated that

Mortgage Corp., Chicago, III.

was

present

Electric Co.

528,000

bidders:

Transistor

working capital.

it Air Products,

cents).

Advance
Dec.

Feb. 26 it

March 1 (letter of
stock (par 10
For

M.)

was

—Acquired

gram

pur¬

States Borax & Chemical
Corp. (3/20)
Feb. 26 filed 150,000 shares
of common Stock
(par $1).
Price—To be supplied
by amendment.
Proceeds—To

Underwriter

the

ing the authorized outstanding indebtedness to $15,000,-.
COO, in/ connection witn its proposed recapitalization,plan. There are no specific objectives involved./.Control

4,000

$100)
one

United

selling stockholders.
Corp., New York.

Employees

authorizing

cumulative

500,000

Business—Meat

program.

derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten &
Co., all of New York City. Offering—

Pro¬

Office—Philadelphia, Pa. Underwriter—Mortimer

Burnside

pansion

Air

for reoffer to the
public. Price—At market prices.
ceeds—For working capital and
general corporate

(A.

27"it

Jan. "25

—

Prospective Offerings

Conditioning Corp.
Sept. 27 filed 600,000. shares of common stock
(par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000
shares, plus
any of the unsold portion of the first
50,000 shares, are
to be offered to the
public; and the underwriter will be

poses.

plans

Price—To be

To reduce

—

presently outstandingfirst mortgage
bonds, to repay bank loans and tor ex^

Management Co. (3/25-29)
Development Corp. of America above.
States

April

000 of

1957, on the basis
shares'held; rights to

Ulen

United

around

expire

asphalt plant, equipment, working capital
and other corporate
purposes. Underwriter—None.
See

(4/1)

Corp. "*/
/ r
Feb. T it was announced that the company plans, before
the middle of the year, to issue approximately $12,000,—

common

For

—

Co.

shares.

it Byers

Co.

Mass.

Haisey, Stuart & Co. Inc.;

announced

stockholders

vote

subordinated/cumulative

debentures due Dec. 1, 1976, and 6,000 shares of

Proceeds—For

ceeds:

Halsey, Stuart & Co. Inc.', Equi.abxe
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).
:

Gas

company

Feb.

Electric Co.

bidders:

Registration—Expected

Underwriter—None.

bidders:

subscribed

5 filed

by the company on or

the

scription privilege).

Proceeds—

$12,000,000 of first mortgage bonds, series
C, due April 1; 1987. Prnceeds-^-To repay bank loans.
Underwriter—To.be determined by competitive bidding:

Aug.
stock

platform; reserves for escalation
gency charges, etc.
Office—Houston, Tex.
—Dallas Rupe & Son, Inc.,
Dallas, Tex.

Weaverville, N. C.
43,635 snares of common
offered to stockholders on the

being

$5)

March

for

scribe during a three weeks' period for 20,000 additional
shares ol common stock (par $10) on the basis of one
new share for each five snares held
(with an oversub¬

Co.,

• Western Massachusetts

Feb.

Berkshire

common

construction

Wilson & Co., Inc.

drilling

tion

Tel.

(par
share. Proceeds—For working capital.

New York.

for

—

Probable

years.

Feb.

Electric

$12,000,000

April

class B stockholders of record Feb.
4,
one new share for each
seven

(3/8)

Dec. 7 filed 200,000 shares of class A

$1). Price—$5 per
Office—Houston, Tex.

About

Carolina

one

—

Inc., Los Angeles, Calif.
•

16.
—

subscription by
21, 1957 (other

March

(4/15)

Salomon Bros. & Hutzler.

Co.); rights to
Price—To be supplied by amend¬

working capital.

Aug.

Proceeds—For inventory, working capital, etc. Bu^ineM
—Electrical heating. Office—26 Avenue B,
Newark, N. Jk
Underwriter—Eaton & Co., Inc., New York. '

Thrifty

expire
For

record

for

RR.

purchase irom it of $3,585,000
equipment trust certificates to be due annually in 1-to15

offered

Ohio

Thursday, March 7, 1957-

expected to be received

are

about

(letter of notification)

Wildcat

(letter of notification)

Bids

com¬

Thermoray Corp.
June

Baltimore

increase

Underwriter—None.

(par

IVJarch

Oct. 30 filed 52,000 shares of class A stock
(par five
cents) and 28,000 shares of class B stock (par five cents).
Pripe—Of class A. expected at $10 per share in lots of
ceeds—For

basis

appliances and air conditioners and for working
capital. Underwriter—Franklin Securities Co., Dallas,'

Plan,

April

Western

stock

Interests

March

—

(3 21)

the West Penn

parent,

Proceeds

Peb.

Theatrical

Proceeds

Underwriter—Carl M. Loeb,

Co.

stockholders

its

program.

Texas

soon.

rights to expire

snare.

unspecified -number of shares of
par)

•

Offering—Expected

(no

ment.

Price—At par (in denominations of $500).
Proceeds—To be invested in secured loans. Office—700
Denver Club Bldg., Denver, Colo.
Underwriter—None.

Texas.

per

Power

expire

maturity).

Nov.

filed

common

five-year

mon

$24.50

Penn

Feb.

it Stratford Corp.
Feb. 20 (letter of notification)
convertible

—

Rfioades & Co.

Glore, Forgan & Co., New York, and Fulton

—

Price

investments in subsidiaries.

Statement

determined

Probable bidders:

Beane, White, Weld &

Co.-(jointly);

Expected

Merrill

Morgan Stanley

received

by competi¬
Lynch, Pierce,
R. W. Press-

Co. and

April

expected to be filed shortly.

Co.

Bids—

Registration

—

Volume

185

Number

5618

The Commercial and Financial Chronicle

Columbia Gas System, Inc.
Feb.

18,

and

announced

company

sale

additional

competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beane and Lehman Brothers (jointly);"

that it

plans the issuance

debentures

order

1957 construction
program, which is expected to cost
approximately $87,000,000, which will also,, be financed,
in part, through the offering of
1,500,000 shares of comT

stock

the

determined

public

(see above).

competitive

Probable

Columbus & Southern Ohio Electric Co.

bid¬

Union

Securities

&.Co.

Salomon

and

Bros.

(jointly); Lazard Freres & Co. and Blyth
(jointly); Kidder, Feabody & Co.

reported that company plans to issue and '

was

late

this

approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc. has not yet been determined.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc<; Equitable
Securities
Corp.; Lehman Brothers, Eastman Dillon,

Halsey,; Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld
& Co. (jointly)."
.

offer

sell in.the Fall $8,000,000 of cumulative
preferred stock.

Proceeds—For • batna, and then eastwardly across the Florida panhandle
Putnam & Go.,-- and down the Florida peninsula to a terminal south of
Hartford," Cohn.; and' Chas. W. Scranton & Co.,-vNew- Miami in Dade County, Fla.,. estimated to cost a total
Haven, Conn.
'-*■< V•-y ■"<
*V of $94,285,000. .Underwriters—May be Blyth & Co., Inc.,
San Francisco,
-Consolidated Natural Gas Co.
Calif., and Scharff & Jones, Inc., New

market conditions^

program. - Underwrite, %-f-

\'.v JVv.-

Orleans, La.

Feb. 11 it was announced
company plans to issue and sell,

;

Feb.

7, the directors approved, subject to stockholder
approval; an increase inthe authorized serial preferred
stock.(par $50) from 1,000,000 shares to 1,600.000 snares.
& Co. and
Paine, Webber, .Jackson & Curtis-(jointly)f-■ Underwriters-^-Merrill Lynch, Pierce, Fenner & Beane
Morgan, Stanley. & Co.. and the First Boston Corp. * •Tand The First Boston. Corp., both of New York.
(jointly).
:
;
•
Indianapolis Power & Light Co.
.

Underwriter—To. be determined by competitive bidding; r
probable bidders: Ilalsey, Stuart 6c Co.
Inc.; White, -Weid

its

Paso

Feb.

Electric

right to subscribe
Jtinnal shares of
an

(5/7) .7, I.' -'
about

record

stock- .(-par

common

each- 15

oversubscription privilege).;
&

Webster

Securities

•dealer-manager for

common

★ El Paso Electric Co.
Feb.

May 7,

$5)~

shares held'

1957 'the*

on-

rities

1957

market

conditions

make

will need

to be

sold

1959

and 1960, amounting
Proceeds—To repay bank
Joans, and for new construction. Underwriter—May be
Lehman Brothers, Gbldman, Sachs & Co. and The First
Boston Corp.,who underwrote last equity financing.
to

Dealer-Minager—
as

time, in

icaj»ible, and an issue of $8,000,000 in bonds in 1958. Tem¬
porary, bank loans are available and probably will be
utilized, during at least part of 1957. Additional secu¬

•

*-•

/ •/<;
;plans -to' issre^

15)

To reduce

—

Prichard,-President, announced that presplans contemplate an issue of $6,000,000 of preferred

stock-some

the basis of-

(probably-vx itn

Corp.,; New York,; acted
stock offering last >€fhr.

ent

119 ;522*add+^ ;

Proceeds

bank loans and for.new construction

'Stone

to cfferHo" its

before May 21 for

on ,or

share for

new

NoV. 21r H. T.

reported companyj plans

was

stockholders

common

one

Co.

approximately $14,000,000.

International Business

Machines

reported company
Corp. (5/21)
and
$6,500,000 of first mortgage bonds.' Proceeds ' Feb. 26 it was announced company plans to offer its
stockholders/of- record
bank loans and for construction
May 21, 1957, approximately
program. *
Underwriter—To be determined by competitive binding. - $200,000,000 ;of additional capital stock, following pro¬
.Probable bidders:-Haisey, Stuart &. Co.' Inc.; Merrill
posed split up of the present outstanding shares on a
Lynch, Pierce, Fenner & Beane;' Stone & Webster Se-. - 2-i'or4l basis. Proceeds—For working capital. Under¬
.curities Corp., Equitable Securities
writer—Morgan Stanley & Co., New York.
Corp.; Kidder, Peabody & Co., Shields\Sc Co. and White, Weld .•& Co.
Interstate Power Co.
sell

was

about

—To

repay

(jointly); Blair & Co. Incorporated.
be received

Florida

Jan.
its

May 15.

Bids—Expected to
1

■

was

common

writers

Merrill

—

stock

l-for-10

basis.

Lynch, Pierce, Fenner & Beane and

•Kidder, Peabody & Co., both of New York.
★ Florida Power & Light Co.
March

gram.

Underwriter—To

reported

was

-Under¬

(5/21)

plans to issue and
sell $15,000,000 of first
mortgage bonds due 1987." Pro¬
ceeds—To repay bank loans and for construction
pro¬
company

determined

competitive

.bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
.White, Weld & Co.; Merrill Lynch, Pierce, Fenner &
and

Kidder, Peabody & Co. .(jointly); The First
Corp.; Blyth & Co., Inc. and Lehman Brothers
(jointly). Bids—Expected to be received on May 21.

Boston

General

Feb. 5 it was reported
company plans to issue and sell,
probably in June, first to common stockholders, $40,000,000 of convertible debentures. Underwriters—Paine,
Webber, Jackson & Curtis and Stone & Webster Secu¬

rities

Corp., both of New York; and Mitchum, Jones &
Templeton of Los Angeles, Calif.

dent,

said

Rubber

management

capital

like to

Co.

O'Neil, Executive Assistant to the Presi¬

the

revamp
would

Tire

Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Beane and Kidder, Pea¬
&

body

was

Inc.; Smith, Barney & Co.

structure

and

that

the

plan

company

up with one issue of preferred stock.
$18,000,000 will be put into cap¬
during the fiscal year to end Nov. 30,

come

Jan.
the

(6/6)

announced

was

and sale of

suance

ceeds

the

amount to

exact

be sold

program

will necessitate the sale

raised

and

the

$6,000,000. The

type of securities to

under consideration by the management.

now

are

May be The First Boston Corp., New
York; and G. H. Walker & Co., St. Louis, Mo.
—

ic Iowa-Illinois Gas & Elects :c Co.
Feb.
sell

later

reported

was

1957

Proceeds—For

abcut

plans to issue and
of new securit cs.
program.
Underwriter—For

company

$11,000,900

construction

preferred stock, to be determined by competitive
bidding. Probable bidders: Merrill Lynch, Pierce, Fen¬
ner
& Beane and White, Weld & Co.
(jointly); Salo¬

any

Bros.

Hutzler; Harriman Ripley & Co. Inc.; Glare.
Forgan & Co.; Blyth & Co., Inc.; Lehman Brothers.
Jefferson

Lake

Witter &

future to

sell

program.

Power & Light Co.
announced company plans to issue and

Jersey Central
company

planning

is¬

$15,500,000 first mortgage bonds. Pro¬

12, it

Sept.

was

sell

$8,000,000 of first mortgage bonds due 1987 (later
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; The First Boston

To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.: Morgan

■

changed to $15,000,000).

Stanley

Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids — Expected in
June or July, 1957.

Co.

—

Corp.

Blyth

Co.;

Shields

and

Co., Inc., Kidder, Peabody &
(jointlv): Equitable securities
Dillon,
Union
Securities
&
Co.

Co.

Eastman

(jointly); Harriman Rinlev & Co. Inc.

Bid«—Tentatively

expected to be received up to 11

(EDT)

a.m.

June 6.

Kaiser

★ Gulf States Utilities Co.

Nov.

March

stated

sell

was>

reported

plans to issue and
$16,000,0G0 first mortgage bonds late in Jure. Pro¬

ceeds—To

bank

repay

loans

Underwriter—To

gram.

bidding.
Merrill
Weld

company

and

for

construction

determined

pro¬

competitive-'

bidders: Halsey, Sluart & Co. Inc.;
Pierce, Fenner and Beane and White,
(jointly); Salomon Bros. & Hutzler and

Probable
Lynch.

Co.

Eastman Dillon, Union Securities & Co.
Loeb

Co. and A. C. Allyn

Webster

Securities

(iointiv); Kunn,

& Co. Inc.

Corp.;

Lee

(jointly); Stone
Higginson Corp.

★ Gulf States Utilities Co.
March

proximately
common
new

was

reported

$7,000,000

Jan.

sell

stock.

company

Proceeds—To

construction.

the

repay

Underwriter—To

plans to ra'se ap¬
sale cf additional
bank loans and
be

determined

for

that

and for

First

Boston

expected

Inc.

is anticipated

Gas
was

Co.

Corp., New
April.

the

company

is planning an

half of
not
been finally determined. Proceeds—To repay bank loans
(expected to be around $6,800,000) and for construction
issue

1957,

but the specific details of the financing have

first

mortgage

bonds

during the first

plans

company

construction

issue and

Proceeds—To repay bdnk

Underwriter—The

program.

York.

late in

Offering—Tentatively
v • "
'

Merchants National Bank & Trust Co.
Feb.

announced

was

(3/12) '
The'Attorney General

that

of the United States will up to 11 a.m. (EST) on March
12 receive
bids for the purchase from him of

3,062
capital stock (par $10) at the Office of Alien
Property, 101 Indiana Ave., N. W., Washington 25, D. C.
These shares represent less than 1% of the issued and
of

outstanding capital stock of the
apolis, Ind.

bank.

Office—Indian¬

Metropolitan Edison Co.
Jan. 29 it

was

sale

the
1987.

reported that company is

first

$19,000,000

Underwriter

■

—

now

mortgage

determined

tive

considering
bonds

due

by competi¬
Stuart & Ce.

bidding. Probable bidders: Halsey,
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—Not expected to be received until sometime
in April or May, 1957.
★ Michigan Consolidated Gas Co.
March 4 it was reported company plans to issue and
sell between $25,000,000 and $30,000,000 of first mort¬
bonds before Summer.

gage

loans
be

construction

for

and

Proceeds—To

bank

repay

Underwriter—T«t#
bidding. Probable bid¬

program.

determined

by competitive
Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Blyth & Co., Inc. (jointly); White, Weld & Co. and
Lehman Brothers (jointly).
ders.

•

Minneapolis & St. Louis Ry.

(4/23)

Bids will be received by the company up to noon

April

ment

trust

(CST)

for the purchase from

series

certificates,

mature

it of $2,700,000 equip¬
A dated Mav 10, 1957,

Probable bidders:
Halsey, Stuart Sc Co. Inc.; Salomon Bros. & Hutzler.
annually in

Mississippi
Jan.

l-to-15 years.

Power Co.
announced

was

(4/11)
plans

company

issue arid

sell

$6,000,000 of first mortgage bonds. Underwriter —
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane; Kidder, Peabody & Co.; Blair & Co.
Incorporated; Eastman, Dillon,-Union Securities & Co.
and Equitable Securities Corp. (jointly).
Bids—Tenta¬
tively expected to be received up to 11 a.m.- (EST) on
April 11
Registration—Scheduled lor March 15.
National Fuel Gas Co.

Jan. 10 it
000 of

was

new

(5/28)

reported company plans to issue $15,000,-

25-year debentures. Proceeds—To make addi¬
in securities of subsidiaries.
Under¬

tional investments
writer

—

Probable

determined

bidders:

bidding.

competitive

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 Telefilm Associates,
March
to

announced

was

future.

Inc.
plans to issue up

company

debentures in the near
reduction
of
short-term debt,

$8,000,000 convertible notes
Proceeds—For

Under¬

working capital and other corporate purposes.
writer—Charles Plohn & Co., New York.

Jan.

its

Electric System

1956, it was announced

comnany

plans to merge

subsidiaries, Essex County Electric Co., Lowell Elec¬
Electric Co.. Haverhill Electric

tric Light Corp., Lawrence

Co. and Amesbury Electric Light

Co., into one company.
$20,000,000 first mortgage
bond issue by the resultant company, to be known as
Marrimack-Essex
Electric
Co.
Underwriter—May be

This would

determined

followed

competitive

bidding.

bidders:

Probable

Co. Inc.; Kuhn, Loeb & Company;
Hutzler,
Eastman
Dillon, Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston
Corp.; Equitable
Halsey,

Stuart

Salomon

Bros.

Lynch, Pie.ce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

Securities Corp.; Merrill

New

Sept.
sell

Jersey Power & Light Co.

was

announced company plans to issue and

mortgage bonds. Underwriter—
competitive bidding.
Probable
bidders: Halsey, Stuart & Co.: Kuhn, Loeb & Co., Leh¬
man
Brothers and Salomon Bros. & Hutzler (jointly);

$5,000,000

Co.

Boston
New

Dillon, Union Securities & Co. and White,

Eastman

of first

determined

Weld

(jointly); Equitable Securities Corp.; The First
Corp.; Merrill Lynch. Pierce. Fenner & Beane.
York

Bids will

announced

Dean

—

•

Laclede

announced

was

$30,000,000 of debentures.

loans

28, E. E. Trefethen, Jr., Executive Vice-President,

that a portion of the funds
necessary to meet the $25,000,000 installment due April
1, 1957 on its 4%%. term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the
securities of the companies owned by the Henry
J.
Kaiser Co., or of certain other assets. Underwriter—The
First Boston Corp., New York.

Feb.

through

Industries,

68,750 additional shares of
$16.66%) on\ the basis of one new

Co., San Francisco, Calif. Registration—Expect¬

New England

issue of convertible deben¬

expansion

(par

ed, late in March.

Sulphur Co.

Eugene H. Walte, Jr., announced company plans

near

Proceeds—For

tures.

was

of securities to the extent of $5,000,000 to

in the

Georgia Power Co.

Light & Power Co.
announced that cash required to finance

construction

1957

Dec. 27,

1957.

Offering—Probably in May.

Iowa Electric

mon

working

(jointly); White, Weld & Co. and R. W.
Co. (jointly); Salomon Bros. & Hutzler;

Smith, Barney & Co. For stock: if competitive, Blyth &
Inc.; Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly); Harriman Ripley & Co.

ital

sJan.

Co.,

He added that close to

investments

Co.

-Pressprich

First

The

share for each three shares held.. Underwriter

—

Underwriters

Telephone Corp.

General

new

Probable bidders: For,bonds:

May

additional

Dec.

securities ($19,800,000 of first mortgage
bonds and about $9,000,000 of common stock).
Under¬
writers
To be determined by competitive bidding.

that company plans to offer to
, or
June about $11,000,000 of

reported

reported company plans to sell about $28,-

was

800,000 of

Power Corp.

stockholders

Beane

Feb.' 20 it

(jointly);

stockholders

stock

Gardner

reported company plans in April to offer

was

common

Illinois Power.Co.

probably in June $25,000,000 of 25-year-debentures and
an
additional $25,000,000 of.; debentures in
the ;Fall."

Lone Star Gas Co.

/; Houston Texas Gas & Oil Corp., Houston, Tex.
"Connecticut Light & Power: Co.-:
1, Dec. 28 thecFPC authorized this corporation to build
Feb. 18, it was reported company plans to sell rrot
les§c 942,6 miles of main line extending from the Mississippi
than $20,000,000 of first
mortgage- bonds, possibly * thisv* itivex connection across Louisiana, Mississippi and Alar
upon

Reinholdt

Lincoln Telephone & Telegraph Co.

Feb. 18 it
to

Co., Inc.

construction

Corp.

Hutzler

Underwriter—Dillon, Read & Co. Inc., New York.."

Fall, depending

and

Fall

ders:

Feb. 21 it

Beane
Boston

Underwriter-r—To

bidding.

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; Stone & Webster Securities Corp.;
Lehman
Brothers, Merrill Lynch, Pierce,
Fenner &
tive

Corp.; Carl M. Loeb, Rhoades
Offering—Expected in June.

Co.

Houston Lighting & Power Co.
Feb. 13 it was reported company may

purposes.

Stone & Webster Securities

finance

its

mon

(1143)

Central

RR.

(3/13)

by the company up to noon (EST)
the' purchase from it of $3,825,000

be received

March

for

equipment trust certificates. Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Continued

Halsey,

page

(1144)

The Commercial and Financial Chronicle

Continued from page 43

Portland Gas & Coke Co.

New York State Electric & Gas Corp.
Oct. 24 it was announced company plans to

$25,000,000
$20,000,000

first

1958.

bonds,

mortgage

Proceeds—To

and

Feb.
first

sell in 1957
additional

construction

program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

Blyth & Co. Inc. and Smith,
The First Boston Corp. and
Glore, Forgan & Co. (jointly); Harriman Ripley & Co.
Inc.; Kidder, Peabody & Co. and Salomon Bros. &

^Northern States Power Co.
it

reported

was

(Minn.)

tures

stock.

Feb. 23
sell

Telephone Co.

announced company

was

about
in

Proceeds—To

retire

tion program.

petitive

short-term

loans

May 1,
for

and

share.

1,500,000

expansion

Jan. 30 it

locally
and

Offer¬

issue.

both

stock

Oct. 8 it
of

was

underwritten

Public Service Co. of
Feb.

Co. Inc.; Morgan Stanley &
Co.; The First Boston Corp.;
Eastman Dillon, Union Securities & Co.
Bids—Expected
to be received around April 23.

Hutzler, New York.

some

raise

previously

Proceeds—To repay

Underwriter—To

placed privately.

were

United Artists

Probable bidders:

Jan.
is

Corp.

giving active

from

this

announced

was

consideration

Proceeds—Together

with

privately-owned company
to a public stock issue.
loan

about

$6,000,000

motion

picture exhibitors, to be used for working
capital and other general corporate purposes.

ic United Illuminating Co.

Indiana, Inc.

it was announced

■

Weld & Co. and Stone & Webster Securities
Corp. Bonds

reported company plans the issue and sale

Expected to be received early in 1957.

construc¬

Underwriter—To be determined by com¬
probable bidders: Halsey, Stuart &

Ferry, Inc.

Transcontinental Gas Pipe Line Corp.
Jan. 8 it was reported that company plans to sell
additional preferred stock and bonds in order to

Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and
White, Weld & Co. (jointly); The First Boston
Corp.;
Blyth & Co., Inc. and Smith,
Barney & Co. (jointly);
Lehman Brothers; Harriman
Ripley & Co. Inc. Bids—

bidding,

stock

common

the cost of its $140,000,000 1957 construction
program.
Underwriter — For preferred stock — White,

bank loans and for new
construction.
be determined by
competitive bidding.

1989.

Milwaukee, Wis.

Financial Adviser—Salomon Bros. &

capital.
Underwriter

Colorado

$30,000,000 first mortgage bonds.

additional

some

was reported corporation is
considering public
financing, but details have not as yet been determined.

working

part
of

generally

Price—Of preferred, $102 per share. Pro¬
working capital and general corporate pur¬
Underwriters—Emch & Co. and The Marshall Co.,

Jan. 21 it

five shares of

Canada.

Service Co.

additional

TMT Trailer

Public

sell

•;

reported company plans to issue and sell
shares of 5% preferred stock

was

10,000

poses.

(Canada)

common

and

Balance

during 1957.

Operates shopping centers.
Dillon, Union Securities & Co., New Ycrk, tor
ol'

Underwriter—White & Co., St. Louis, Mo.

Thorp Finance Corp.

ceeds—For

—

two-thirds

due

Stuart-Hall Co., Inc., Kansas City, Mo.
30 it was reported early registration is
expected
of about 40,000 shares of common stock. Price—$6.75
per

—

(4/23)

due

(jointly).

units of $50 of debentures and

Proceeds-^-For

Eastman

intends to issue and

$30,000,000 of 32-year debentures

1932

certificates, series WW,

Jan.

reported that early registration is ex¬
issue of $15,000,000 of subordinated deben¬

Business

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.
I
Bell

Co.

announced

was

due

be sold

determined

Northwestern

pected of

Tower Co.
(Wis.)
(6/4)
reported company plans to issue and
$10,000,000 of first mortgage bonds due 1987. Pro¬

Underwriter—To

trust

semi-an¬
Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler.

Co.

^ Principal Retail Plazas of Canada, Ltd.

was

program.

Edison

was

(3/21)
$5,540,000

equipment

nego¬

—

Feb.

^-Northern States

construction

Ry.

nually to Jan. 15, 1967.

ley & Co. and The First Boston Corp.
ing—Expected in May.

ly;; The First Boston Corp. and Blyth & Co., inc.
(jointly); Equitable Securities Corp.; Kuhn, Loco & Co.;
Ripley & Co. Inc.

sell

Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly);
Lehman Brothers; Kidder,
Peabody & Co.; W. C. Lang-

company

Harriman

ceeds—For

common

Underwriting—May be

To repay bank loans and for construction
pro¬
Underwriter—For any bonds to be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White. Weld & Co.;
Equitable Securities

Beane, Kidder, Peabody & Co. and White, Weld 6c
Co. (jointly); Lehman Brothers and Riter & Co.
(joint¬

additional

stockholders,

Southern

Thursday, March 7, 1957

Bids will be received by the
company up to noon (EST)
on
March
21
for the purchase from
it of

probably

gram.

and

•

plans offering,

company

company may in 1957 issue
$14,000,000 to $15,000,000 of senior securities. Pro¬

ceeds

plans to issue and
sell in the Fall of 1957 $15,000,000 first
mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner

March

some

(jointly).

March

common

Potomac
Dec.

Inc.; Kuhn, Loeb & Co.;
Barney & Co. (jointly);

Hutzler

reported

was

stock later this year.
tiated basis.

finance

Feb.

that it is exoected that

new

its

series of first
mortgage bonds (about $30,000,000 initially
scheduled for 1956) will be issued and
sold by the com¬
pany, during 1957.
Proceeds
To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new
construction.
Underwriter—To be determined by com¬

stockholders

stock

common

eight

announced

was

common

the

held.

plans

company

311,557

basis

Proceeds

offer

new

For

—

additional

one

for

each

construction.

new

—

Pacific Telephone &

Telegraph Co.
14, 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
Jan.

phone & Telegraph Co.

Underwriter—For any bonds, to
be determined by competitive
bidding. Probable bidders:
1

•

Puget Sound Power

Pennsylvania RR.
6

will

Penn

(3/11)

received

Center

later

this company at
Philadelphia 4, Pa.,

Plaza,

Room

1347,

noon

instalments.

14 it

company plans to offer about
stock to its stockholders about

common

the middle of the year on
each 20

basis of

one

new

share for

will

Y.,

Co.

Erie RR.

received
noon

(EST)

the

part

Jan.

New

York,

Feb. 1 it

March

In this respect railroad
exoendifor new
equipment appear
destined to
make
more
tnan
a

tures

modest contribution to the
overall

judging

by a quick glance
proposals already in sight.

develops

carriers have

that
no

the

nation's

disposed

spending
due to
were

back

plans

curtail

industry

its

some

capital

number of factors which

not in evidence

when

measure

some

months

appropriations

several

between

spite

this

tendency

it appears that the cavital
will be taxed
of projects
be

which

carried

some

care

destined

are

through.

there has been
said"

market

heavily to take
And

while

"trimming of

possible

that

this

fact

and

$70

mil¬

securities.

market.

average
out around
The largest thus
.

Rather

they

million.

far

sight

Chicago, BurlingtoiV & Quincy's

$7.5

million

This

entry.

paper

the

may

type

wish to

security

"running

normally

hardly

for

the

Right
favor

out

Co.'s

the

full

see

big

Gov¬

cue

the

cuss

the

terms

the

Incorporated

and

West Penn Power Co.
announced

was

additional

company plans to issue some
securities, probably about $20,000,000

senior

of first mortgage bonds due 1987.

bank loans and for

new

Proceeds

construction.

—

Jo repay

Underwriter

—

by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Offering—Expected sometime in July.

the

issue

ahead

is not

world

afire.

week

set

"Standby"

new

the

maintain

the

recent

single

plus

undertaking

million

bonds

opened

Chicago

utility

Edison

30-year first
which

bids

Tuesday.

will

Operations

The flow of equities as a source

capital

new

continues

for

set

corporations

fast

pace.

The

week ahead will have its quota of

such

flotations, topped

ern

of flotations

Commonwealth

$50

by competitive
Stuart & Co. Inc.;
Baxter «& Co. (jointly);

Halsey,

Lynch,

Dec. 27 it

Co.'s

offering

additional

by South¬
1,507,304
to

common

its holders. Bids for the "standby"
this offering will be opened

Wednesday.
Owens-Corning Fiberglas Corp.
offer
300,000 shares of its
publicly
through
its

The

will
use

the

betting

issue,
five

week

sell

first

mortgage,

$12

million

competitive

Light

bankers the

Co.

Telephone

same

30-year,

holders

bonds

Monday

128,918 shares of

bidding

day and Florida

.Corp.,

rights

will

give

its

new

common.

Central & South West Corp., on

Wednesday the Commonwealth of

Tuesday, will be seeking the best

Australia,

through

here, will market

dis¬

and prospective
forthcoming offering.

Power

will

but

years

finance construction.

Minnesota

its

$20

and

bankers

million

15-year bonds to help refund out-

market

of its

determined

bidders:

satisfying variety.

funds to

mar¬

Treasury officials will be meet¬
ing with banking and investment
within

Co.

common

note

the

will

and

usually fixed for maturity of this
type of paper.

interest

Probable

Pierce, Fenner & Beane and Stone &
Corp. (jointly); Kidder, Peabody &
Co.; Equitable Securities Corp.;. Eastman Dillon, Union
Securities & Co.; The First Boston Corp.

will

Largest
sight

the part

money

now

1957.

Webster Securities

mortgage

wait

mortgage bonds in the Spring of

Underwriter—To

gram.

pace

rather

borrowers.

outlook
.

sale of lirst

Proceeds—To repay bank loans and for construction pro¬

steady tempo

Treasury has dis¬
plans for seeking out
$2 to $3 billion of new money its
decision is likely to make for some

what

company

the

The

But

its

They

12, Everett J. Boothby, President, announced that
expects to raise about $8,000,000 through

the

market for the

Now that the

seems

Running true to precedent none
of these
offerings, cf itself would

Washington Gas Light Co.
Dec.

un¬

destined

Waiting On Treasury

ket.

Pierce, Fenner & Beane.

Keeping the Pace
,

Probable bid¬

Merrill Lynch,
Bids—Tentatively expected on

June 4.

and

from

one to fifteen
years, is cur¬
rently popular with major insti¬
tutional investors, such as the
big
insurance companies.

ernment decides upon

the

To be determined by competitive bidding.
Stone & Webster Securities Corp.;

ders:

Halsey, Stuart & Co. Inc.:

$65

burden

issue

announced company
expects to sell an
of
equipment trust certificates

the market will

lion of such

plans to

(6/4)

15 it was reported company plans to issue and sell,
1,000,000 shares of common stock (par $8). Proceeds—
About $22,000,000 for new construction. Underwriters—

for

amount

(Canada)

reported

Feb.

(3/7)

hesitancy momentarily

the

Fund, Ltd.
was

be determined

of corporate

over

Merrill

absorb

were

Co.

16 such

and the

between

issue

Blair

company

end of May
be called upon to

made.
But

months.

now

Gas

announced

closed

bidding.

certifi¬

less than

issues
equipment trust
cates—headed for market
—

doubt that

Registration—Planned

7.
Probable bidders:
Salomon Bros. & Hutzler.

last year.

total

sell

May.
California

was

specified

year's outlay for new plant and
equipment still may top the record

18.

Southern Pacific Co.

dated April 15,
1957, and to mature annually to and in¬
cluding April 15, 1972. Probable bidders:
Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler.

set

$35,000,000 of first mortgage bonds. Proceeds
To repay bank loans
and for new construction.
Un¬
derwriter—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
or
September, 1957..

March 14 for the purchase
from it of $2,250,000
equipment trust certificates to be

There is

June

sell about

(3/14)

company

plans

company

increasing
2,492,456 shares to 3,5C0,-

stock from

Underwriter—None.

Virginia Electric & Power Co.

that

bonds

received

Southern

by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; White, Weld &
Co.; The First Boston Corp.; Morgan
Stanley & Co. and
Drexel & Co. (jointly).
*

Pittsburgh & Lake

latter

Feb. 14 it was also announced
company plans to issue
and sell in the second half of 1957
additional first mort¬
gage bonds.
Proceeds—For expansion program. Under¬
writer—To be determined

the

announced

by competitive bidding. Probable bidders:
Halsey.
Stuart & Co.
Inc.; Morgan Stanley & Co. Bids—Expected

shares held. Proceeds — For construction pro¬
Dealer-Managers — Drexel & Co.,
Philadelphia,
Pa., and Morgan Stanley & Co., New York, N. Y.

Bids

1957

mortgage

•

President,

mined

gram.

Philadelphia Electric

Light Co.

Southern Bell Telephone &
Telegraph Co. (6/18)
Feb. 25 directors authorized
the issue and sale of
$70,,000,000 of 29-year debentures due June
1, 1986. Proceeds
—For construction
program.
Underwriter—To he deter¬

Co.

announced

was

McLaughlin,

S.
25

vote March

that this Fund plans to offer
$15,000,000 of capital stock. Underwriter—Kidder, Pea¬
body & Co., New York. Offering — Expected in early
Spring.

(company is authorized to issue
principal amount). Proceeds—To
retire bank loans.
Underwriter—Mav.be de'ermined by
competitive bidding.
Probable bidders:
Halsey, Stuart
& Co. Inc.; The First Boston
Corp.

Probable bidders: Halsey, Stuart & Co.
Inc.;
& Hutzler.

Philadelphia Electric
Feb.

$25,000,000 additional

Bros.

600,000 shares of

Frank

first

(EST) on March 11 for the purchase from it of
$4,950,000
equipment trust certificates, series HH, to be dated
April 1, 1957 and to mature in 30 equal semi-annual
Salomon

common

shares.

Feb.

(jointly).

Feb.
Bids

000

petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston
Corp.; Harri¬
man
Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. &
Hutzler and Eastman
Dillon,
Union Securities & Co.

be financed in part, by debt
borrowings and stock issues.
About 90% of Pacific's stock is owned
by American Tele¬

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

Meeting—Stockholders to
authorized

standing 3lis;

■

bid from bankers for the
of

underwriting its

privilege

projected of¬

fering of 600,000 shares, of'addi¬
tional

pnfffrYihn

shareholders.

*■

Volume

5618

Number

185

(1145)

Chronicle

The Commercial and Financial

Allegheny Ludlum, Jones & Laughlin, Inland and Cleveland Cliffs

Guardian Mutual Fund assets in

year

share
to

Iron

ended Feb. 28 increased from

$3,963,196
value

went

including

$17,

The

capital gains

•

five

holdings

bond

Bethlehem,

are

Detroit

Steel,

All

By ROBERT R. RICH
the

told, investment companies have $428,573,000 invested in
stocks of 51 steel companies, $23,154,000 in the preof 12 companies and $9,947,000 in the
bonds of seven
companies. • *
•
"
!

common

ferreds

Companies Buy Low, Sell High

Investment

steel

effort has been made, to demonstrate
in detail the real value of professional management to the share¬
holders of investment company shares.
».' /
\,- •
To the detractors of the industry, mutual funds are no better
an investment than an across-the-board purchase of stocks in the

Until now, 110 concerted

A MUTUAL

INVESTMENT
FUND

Dow

J.'

Industrial Average.

Jones

Chemical Fund, Inc. Elects Three Directors
of three new directors of Chemical FTind, Inc.,:
by F. Eberstadt, Chairman, and Francis S. Williams^
President, following the annual meeting of stockholders. The new
•The

the National Association of

Investment Companies, under the di-

Executive Director, have clearly,;
ability of investment company managements—
of Rothschild—"to buy sheep and sell deer."

Edward

rectionrof

election

announced

was

Y :To the supporters of the industiy, mutual funds can, through
professional selection of portfolio purchases and sales, offer inves¬
tors greater opportunities during the upswings in stock prices, and
greater protection when stocks are over-valued.
" v-" "
:-V It is not until the present, however, that two studies made by

WRITE FOR

in the words

Burr,

demonstrated the

FREE INFORMATION

TO
YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

Brood way,

120

first

The

FOLDER AND PROSPECTUS

covering the last two years, is

by way of

companies in
the association had $174,037,000 invested in the common stocks of
46 steel companies. Today, they have $428,573,000 invested in the
stocks of >51 steel companies.
During this period, Standard &
Poor's

New York 5, N.

study,

It shows that two years ago member

introduction.

from 329.9

increased

index

steel

Second

604.2.

Study

Alfred

conducted by the association for the United
States Senate Banking and Currency Committee, covers 34 months
—from Jan. 1, 1953 to October 1955.
This study examined the monthly purchases and sales by 20
The second study,

ATOMIC SCIENCE

through

investors

MUTUAL

buying declined, however, as

FUND, INC.
GET WE FACTS AND F*EE

f 033

PtOSPECM

Development Securities Co., Inc.

THIRTIETH STREET, N. W.,

Dept. O

WASHINGTON 7, D C.

Tel. FEderal 2-1000

inc.

Incorporated 1933

A mutual fund
in

bonds,

common

stocks, with the

proportions "balanced"
in accordance with

man¬

agement's judgment.
A

PROSPECTUS

from your investment

Distributors

REQUEST

dealer

291,400

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

Nelson

organized
Fundo

firms

ican

doing

there.

business

emphasizing growth

investment

this

objective and

after the mutual

will

country,

with

initial

sold

pat¬

funds

30,-

The shares will

publicly in Brazil.

Sao

Paulo-headquartered

panhia
an

Distribuidora

IBEC company,

mentos

while

Companhia

Com-

Valores,
an

IBEC

Empreendi-

Administracao IBEC will

has

the

organized

The latter

fund.

new

counselling board

including

among

Robert

Purcell, Board Chair-,

man

You

can own

YOUR share
'v

•through

The

FUNDAMINTAL

v—,Y J
:

«in

common
a

"facts

•

Investors

"balanced"

diversified

Putnam Fund
HUGH W. LONG

Eitzobefh 3, N. J.

877,745 of reinvested capital gains,
while shareholders cashed in their

Profits

Name.

Free

Prankard 2nd,

told the company's
136,000 shareholders in his report
the

stock

tinues
best

work

fund's
to

service

the

common

management

show

values

that many
in

are

the

con¬

of the

stocks

companies,
non-durable
goods, producing companies, and
fuel and raw materials companies.
-

"Our

investments," he said, "are
in these stocks.
Our in¬

popular so-called
on

page

Putnam Fund Prospectus.

Consectitive

EATON & HOWARD

109

BALANCED FUND
16 CENTS A SHARE

consecutive
CHM

EATON

quarterly dividend
11c

Quarterly Dividend

ment

share from net invest¬

102 nd Consecutive

30, 1957 to stock of record
8, 1957.
WALTER L MORGAN
President

FUND

12 CENTS A SHARE

income, payable March

March

& HOWARD

STUCK

„.

Address,

sold

securities

realized profits went up $3,676,618.
The
fund's
President,
H.
I.

FOUNDED 1928

many

amount

amounted to $1,979,058, while un¬

Mutual Investment Fund under pro¬

Distributors, Inc.

Please send

$4,625,229.

selected for possible long-term

Congress Street, Boston

INC.

'•'/

different industries.
Ask your Investment Dealer for Free Prospectus
containing all the facts — or mail the coupon below.

AND COMPANY,

Diversified

cents

received $19,629,512 on new shares
sold to investors, including $1%-

Continued

THE PUTNAM FUND provides
investment in more than 150 selected

companies and

Address.

paid.
The leading common stock fund
was

vestments in the

fessional management,
Name

income dividend

larger

PUTNAM FUND.

today.

s'deufcitieS1 profits
During the quarter,

cents.

growth and income— PREFERRED STOCKS and
BONDS selected primarily for income—you share in
the ownership of all three with an investment in THE

stocks. For copy

prospectus-book let of
about the Fund, mail

this coupon

COMMON STOCKS

FUND

\°f ^Boston

"•

mutual fund investing

members

Qeorge

PUTNAM

INVESTORS
.,.

its

Services, Inc., Minneapolis.

of American business

043,550, while share value went
up 10 cents a share to $5.79, in¬

that
manage

first

cluding paid out

shares with the fund to

Distributor for the fund will be

the

creased from $357,997,445 to $363,-

launched

portfolio

000,000 cruzeiros.
be

Fund,

quarter ended Jan. 31, 1957, of the
fiscal year reports assets in¬

new

affiliate,

Other Steel Data

invest

securities and

in the securities of certain Amer¬

terned

ten corrypon stocks now held by investment companies
U. S. Steel, Bethlehem, Armco, Republic, Youngstown, National,

Corp. has

—

Affiliated

Inter¬

mutual fund—called

Crescinco

Brazilian corporate

companies acquired
while the price was

$363 Million

Rockefeller's

national Basic Economy

The top

are

the annual meeting yesterday increased

Mutual Fund

month period, the funds were

He has been

1936.

Assets Now

companies' dealings

shares, representing 2.3%

(

director of

Starts Brazil

volume.

Group, Incorporated

His association

He is also

1935.

Affiliated Fund

The fund,

net purchasers
of total Exchange trading.
But 94.9% of this net buying was made in the first 23 months
while the price of U. S Steel increased 27%, from 42% to 70.
In
the final 11 months of the period, while the price went up another
54% points, the investment companies were net buyers of only
14,800 shares, which represented only 0.3% of total Exchange
In the entire 34

investing

Fund, Inc. since 1952.

firm began in

Rockefeller

relatively low.

preferred and

serve.

occurred.

Exchange.

pattern existed in the investment
in U. S. Steel during the same period.
The
most of their net new holdings of the stock

which capacity he continues to

the Chemical Fund Board of Directors from 11 to 14 members.

holdings

was

partner of F. Eberstadt & Co. and has been

action taken

The

Jersey

director of the Warner-Lambert Pharma¬

Vice-President of Chemical

prices of stocks rose.

specific cases. In the first 22 months
of the period, while the price of Bethlehem went up from 55V2 to
82%—an increase of 27% points—the investment companies were
net purchasers of 187,000 shares, accounting for 88.2% of their net
purchases for the entire period and representing 5.7% of the total
trading volume in Bethlehem Steel on the New York Stock

of New

associated with the firm since

But, let's get down to

stock went

the State

The extent of their

Specific Cases

the issue on the Stock

ADMINISTERED FUND

ceutical Company in
Loud

Driscoll, Nelson Loud and
of

Diversey Corp., Elliott Co., and O. A. Sutton Corp.
Mr. Severance is a partner of F. Eberstadt & Co.

months of the period, when the price of
from 82% to 165%, these investment
companies bought only 25,000 shares, which accounts for 11.8%
of their total'net purchases for the full period; • In the last .12
volumes, their volume accounted for only 1% of total trading in

THE FULLY

elected President and

Mr.

Loud

Governor

Nelson

After his retirement from that office he

1954.

•

Driscoll served

1947

Severance

Alfred

are

Bethlehem in most

Then, in the last 12

Securities,

from

the investment companies made

And, in each case, they acquired the bulk of their
before the most dramatic increases in the price level

Bethlehem

Craig

the Board

with the Eberstadt

Exchange.

Group

Mr.

"favorites" of institutional

purchases and sales of both U. S. Steel and
of the months for which data were requested.

DEVELOPMENT

Driscoll

Craig Severance.

during the period.

Combined figures show that

ATOMIC

Atomic

they were known to have been

because

members

open-end and five closed-end investment companies in 25 leading
common stocks including Bethlehem and U. S. Steel.
The stocks on the list were chosen by the Senate Committee

invest in

top

; ' <•

Wheeling Steel, U. S. Steel, and Kaiser Steel.

•

top five preferred stocks are

S. Steel, Kaiser Steel,
Pittsburgh Steel, Cleveland Cliffs Iron Mines and Wheeling Steel.

$16.63

from

dividend of 70 cents.

Mines.
The

while

$4,743,453,

Quarterly Dividend

Dividends payable Mar. 25 to sharehold¬
ers of record at 4:30 P.M., Mar. 11, 1957,.
•

-24 Federal

Street,'Boston

The Commercial and Financial Chronicle

(1146)

Continued

from

relaid

page

last

than in

year

1955.

the

not

Railroad'Securities

Mutual Funds

Thursday, March 7, 1957

maintenance'

far,

they

are-the-big

and

ones

small

them

many

because

believe

still substan¬
in relation to

the

newly

the

portfolio

its

com¬

was

Sigmode Steel Strapping Co.,
Allis Chalmers," Baltimore

announced

Vice-Presi¬

and

general attorney of AllisManufacturing Co„
will work with

dent and

Chalmers

Brooklyn Union Gas and
Bag-Camp Paper were sold

Union

President

fund

while

Gas,

mutual fund, it
by Harold W. Story,

Fund, Inc.,

Gas

Louisiana

Arkansas

mons

sin

Petersen

Mr.

Fernand

out.

director

Paternotte,

advisory depart¬
has counselled
the

Glore,

Forgan's

ment,

who

Incorporated

fund's

investment

Income Fund

Prior

portfolio

the

Jan. 31

ended

quarter

Incorporated Income Fund's total

$48,772,141
to
$58,017,925.
In
the
last
12
months, share value went up from
$8.98 to $9.24, including paid-out
securities profits of 50 cents. For
the year income dividends totalled
52 cents, making a current income
increased

assets

return

Jan.

During

5.17%.

quarter,

totalled

come

from

the

in¬

gross

and net,

$1,013,537

Realized losses totalled
$233,524, while unrealized profits
$616,077.

sold

Stocks

Rio

Denver

were

Industrial

portfolio
and

Grande

while

Corp.,

Rayon
off

sold

stocks

out

Allis-

were

Briggs Manufacturing
and Miami Copper.
Chalmers,
New

the

stocks

common

portfolio include Arkansas Louisi¬

Gas,

ana

Columbia Gas, Commercial Credit,
Evans
Products, Illinois Central
International

Harvester, MooreMcCormack, New York, Chicago
&
St. Louis Railroad, Ruberoid

The

closed-end

tion electronics manufacturers.
Mr. Wilde is also

Vice-President
Coal

Exchange's

Monthly

was

»Js"

MIP

61%, while the total
plans went up 47%.

num¬

the

fund

plans

using

went

number of

plans

from 37,227

rose

54,769.

ports net assets
of

the

road which took office last

of the

April 20.

$5,728,085.95,

$21

per

31, 1956,
equivalent
to
the

outstanding. This

272,800

compares

with net assets of $4,612,626.62

$20.77

share,

per

222,122

During

the

dividends
from

cepts

paid
share

per

income

per

fund

cents

investment

ago

outstanding.

the

year

then

and

from

realized

profits.
The

was

shareholders
an

increase

year.

the

Of these

owned

1,434

1956,

end

43%
new

during

the

shareholders,

78%

Com¬

Growth

Murphy is

law firm

ing

assets

accomplished

ment

partner in the

Wright

and

Sterl¬

was

one

limited partner in G. M-P.

He is

prom¬

Street financial house.

director of Fifth Avenue

Coach

Company,

and

Lines

and

trustee

Beekman-Downtown

the

Hospital, the

Museum of the

City of New York
Kips Bay Boys Club, Inc.

...

Charles

cial

were

participating

Accumulation

continue

the

Plan.

Shareholders
ice

the

serv¬

Mutual

holders at

the

end

pared to only 5%
1955»

1956,
the

at
.

com¬

end
.

the

re¬

about to

now

all

inef¬

and

new

other

of the

year's

small

past six

deficit

common

this

per

the worst by a

was

margin

years.

$11.40

corresponding
1954
$11.23 per share. ^
The

condition

Western
ment

when

will

the

North

of * manpower,

to strive for

manage¬

super¬

facilities which

result

visory

avoiding

thereby
morale.

and

employee

The aim is to encourage

last Spring

control

and

the

increasing

;

new

tools

have

waste

Joi

the

assumed

deficit

new manage¬

provide the

North Western up to parity
operating efficiency.- This will
accomplished by an improve¬

ment in

the

period,

previous "record" having been the

replace¬

and

scattered

car

shop
at
Clinton, Iowa, the proposed con¬
solidation of several freight yards
in both Chicago and Milwaukee,

Kinsolving,

Finan¬

director

Investment

ed" in

1926.

used

Shares of Mutual

the

underlying

are

invest¬

ment of various

monthly and other
investment plans issued by First
Investors
Corporation
of
New
York.
Mr. Kinsolving was born
Brazil

and

studied

versity of Virginia.
Croix

first

the

Uni¬

Winner of the

Guerre, in World War I,
in

served

the

American

Ambulance Field Service of which
is

took

currently

American
Puritan
sets
Jan.
to

in
31

Army

Fund

the

163rd

Air

reports

three

went

of the

Aero

Service,

Expeditionary Forces.

$30,416,446,

went

trustee, then in

Flying Corps and later

command

from

must

have

When

learning in. considerable detail

been

planned
that

the

have

made

by the

which

latter pointed

expected

are

management

new

appropriate to

seems

total

months

from

while

$6.47

as¬

ended

$28,508,553

share
to

value

$6.54,

that

moves

plement the earlier story.

sup¬

As the

out, it is not to be

that

benefits

the

changes

being made should be¬
immediately manifest as to

dollar results.

pletion
time.

for

this

ary

new

about

com¬

shop,

car

May

1, take

other cases, like the re¬
of
the payroll by 4,818

duction

with

Some, like the

the

employees

of the end of Janu¬

and

year

January,

economies

compared

1956,

the

obscured

are

dollar

by other

factors.

employees

higher-paying

jobs

rather* than

super¬

with

content

lion

1956

and

rates

year

that

wage

throughout

the

without complete off¬

freight

the

rate

further

effective

mil¬

revenues

increase

effect

from

and

the

increases,
increases

wage

last

Nov.

the

case

unions

the

that

North

have
so.

Western

entire wage increase has been

made

effective

last

Nov/ 1

since this road has taken the

con¬

servative stand that contracts still
to

settled

active

the

will

that

full

made retro¬

date

therefore

and

increase

wage

accrued

being

evfen, if not entirely paid

For

out.

the

North

Western

hour of increase

penny per

each

means

about $600,000 annually.

Not
W.

long

North

any

stated

his

plans

the

effect

that

made

into

independent property.

optimism

and

that

Mr.

Fitzpatrick, who left the
erations
vice-presidency of

Illinois

Central

become

op¬

the

Presi¬

dent of the North Western, might
well be based on the
cpnviction
that

the

such

and,

tion

with

the

high

power

new

management

bad-order

duced

situation

this

road

that, with the direction and

the

immediate rather than

10 of last
steam ^locomotives had

end

January this

the number of diesel units

ing

end

repair

had

hours

29, and it is stated that not
have been

against

reserve

Western

seasonal

big

has

evident

the

traffic

also be

the

rev¬

North

opening
should

David Morris to

reins.
road's

which

Tour Far East

revenues,
•

•

which

For the last

big help..

David

Morris,
actually higher
than that for 1955. The previously Co., New York
mentioned decline in gross • rev¬ City, and Mrs.
and

road,

other

of the St. Lawrence Seaway

the

percentage of gross

itself

the

Western have lagged. The
on

been

ratio for ,1956

not

maintenance
is

tbok

management

new

solving

particularly,- both

and

steady reduction in the outlay for
equipment maintenance since the
This- is

matter of

Fully mech¬

expected

years

enues

there

toward

problem

five

needs

of this catching

spite

days.

is to boost its traffic.

maintenance

far

few

even

accounting is expected to
be installed by next Jan. 1. Final¬
ly, the rejuvenation of the North

year

stored serviceable

anized

await¬

reduced

been

the

ineffec¬

and

counting" with integrated reports
of
such
nature
as
will, for in¬
stance, make car-spotting almost

re¬

May

was

David

Morris

is largely the reason for the

enues

increase

the

ratio.

"leave

Except for

equipment-maintenance has shown
a

steady month-by-month decline
in ~the final five months of

arid,

and

rent

January of

the

olulu,

reducing

done

for

the

Hong

principal

economies

thus

nance

the

York

dollar.

sources

equipment
have

far

elimination

locomotive
the

by air to New

work

maintenance

its

and

reduction

June

mainte¬

Morris

will

the

study the

David Morrl*

economic

been' given
the

costly

the

Norman Dacey Adds

repairs,
of

diesel shops from nine

to one,

corresponding

previously

the

mentioned

consolidation

shops,

the

and

control

of.

"(Special

MarcuSe'is

car-

about

between

to The Financial Chronicle)

BRIDGEPORT,
now

Conm—William
with

Norman'

Dacey & Associates, 114 State St.

diesel

repairs by laboratory tests which
service

picture in the Far East.

steam

number

result

and

Kong.

'He will return

Mr.

The

maintenance

getting

Tokyo,

Manila

that it has been possible to do this

physically

the

Wilson to Hon¬

pre¬

It has been explained

year.

will

S. S. President

year/sharp declines from the

ceding

ncisco

where, he

cur¬

corresponding months of the

travel

1956

will

April

by air for San

nominal rise in July of last year

that

management

been

time,

same

duplicative

accounting systems are being
replaced
by "responsibility
ac¬

number

had

Vice-

tual

the

retired
a

the

units

and

Under

Executive

At; the-,

;

former

without having to
single additional diesel. As

been

buy

entailed.

all

year,

berths.

opera¬

operating and

diesels

May,

result,.

costs that this obso¬

lete

last

President has been abolished along
with
certain
other
"brass
hat"

diesels

100

locomotives

maintenance

"dead" and

are

will

Chicago

quoted

was

road

valuable

His

repair

steam

without

Chairman

the

Western

merger

that

Board

ago

Heineman

having

over

130

office

management went

new

found

awaiting

nullifying

the $5.6

were

the

whole
set

these

among

decline

year

the

they

been

next Fall.

Chief
forces

•

Fund, Inc.,
of NewYork,a mutual fund found¬

fastest

growing group of shareholders,
comprising 11% of total share¬

..sj:,

week'," has been elected
oi"

Squadron,

military
be

Advertising Manager of "News¬

fund

id,

the French

the

shops by the
efficient
single

highly

the

Shearman

and

time

net

million.

$475

60%

consoiidation

pair shops which is

Directors

Board oi

Management

combined

opened Accumulation Plan
accounts and at the year-end over

of total shareholders

equipment maintenance

ficient

were moves

fund

Pointed out

to reduce
costs

intima¬

management

new

accepted, presumed to be

re¬

Dec.

summarize, the

Last

replete with

case

.•

Inc.

little

the hands of the

'■

Mutual Fund

tions of changes for the better at

was

not

and

Johnston

against $29,481,000

vision, over-all direction and gen¬
eralship which is needed to bring

last

the

inent Wall
year,

for

$30,164,-

the common, there has been a
deficit for the road's junior stock

Dec.

issue

Stock

Murphy

from 1,635 to 2,635, while the total
to

the

Diversified

Mr.

During 1956, for example, plans
using the closed-end shares in¬

outlay

was

ment intends to

the

Fund, Inc.—mutual funds with to¬

and

whole.

the

*•

Inc., Diversified Investment Fund,
Inc., Manhattan Bond Fund, Inc.

Investors

closed-end

and

scientific consultant to the

tal

past Pres¬

Association

than

1953,
and
this
being
"before
funds," not available for payment

scheduled
a

Air Force during World War II.

ber

County

Corp.

Manufacturers

creased

Boone

ident of the Aviation Distributors

Investment Plan continue to grow

rate

&
in

come

director and

Mr. Riddle has been

rapid

Aeronautical

Corp., Fort Washington, Pa., avia¬

Boykin C. Wright. Investors Man¬
agement Company is investment
advisor to Fundamental Investors,

investment company shares among
those
investors
using the New
Stock

pany, Inc., assuming the position
formerly held by the late General

Using Funds

York

President

Wilde,

National

dent

popularity

are

Grayson M-P. Murphy has been

Gain More

Chicago

column

much

members

Janney, Dulles & Battles, Inc.,
Philadelphia
investment
house,
and James M. Riddle, Jr., Presi¬

elected

The

over-the-counter

board

new

Bertram. M.

Co., and Southern Pacific.

MIP Plans

the

this

peared we have been fortunate in

investments

securities.

Railway,

Santa

years.

review

1956

pay augmented
by
challenging, to
overtime on a routine job done in¬
say the least, for the property has
efficiently due to lack of proper
been characterized as having been
investment department of North¬
tools.
Tnis
will
make
it
more
a "pick and shovel" road.
Its hor¬
western National Insurance Com¬
possible for the new management
and the completion of dieselizarendous wage ratio—57.2% in the
pany of Milwaukee, a firm he had
to fill supervisory jobs from with¬
tion.
Another
important
factor
generally good year of 1955—has in and will thus
been with since 1939.
mentioned was the lease of the
improve employee
been ascribed
#
*
*
to] lack of mecha¬ competition. •
100%
owned -Chicago, St. Paul,
nization with the {result that there
A prominent investment banker
At the same time, changes have
Minneapolis
&
Omaha
and
its was no
adequate gain in man-hour
and a well-known electronics ex¬
(consolidation
with
the
parent performance to {offset the {con¬ been made at the top by replacing
ecutive have joined the Advisory
which is expected to cut expenses
the former "departmental" set-up
stantly rising wage cost. Another
Board
of Over-the-Counter
Se¬
run from
by about $2 million annually.
Chicago by autonomous
source
of waste was the lack of
curities Fund, Inc., the only mu¬
Since this Dec. 20 article ap¬
divisional management.
The for¬
proper utilization fpi diesel power.
tual fund devoted exclusively to
mer

$899,134.

went

for

joining Glore, Forgan &
Co.
in
1956, Mr. Petersen was
Vice-President in charge of the

Pays 5.17%
For

committee

holdings

The

North Western which appeared

dollar

of way

in the previous
year, or very
in 1956.

Chicago Sl North Western Railway

advisory department of

Glore, Forgan & Co., Chicago, has
been named an advisor to Wiscon¬

quarter, the fund added

the

Progress

Petersen, of the in¬

vestment

values."

their

and

Herman

are

overpriced

tially

Personal

goods

durable

producing

panies
are

000

are

way

items

By GERALD D. McKEEVER

only

maintenance

'growth stocks' and stocks of com¬

42%

was

While these two

200,000 miles of
shoppings.; Upon

With Birkenmayer Co»
.

(Special to The Financial Chronicle)

they intend to" completion
/ DENVER/ Colo. — Eugene A.
of
the
Clinton
car
Jones has become associated with
bring about, there is only one way
shops, further savings are antici¬
that the. fortunes of the road can
Birkenmayer & Co., Denver Club
pated, which will include, among
turn, and that must be upward. other
Building. He was formerly with
things, the .elimination of
It was pointed out by Mr. HeineColorado
Investment
Co. " and
miles of
that, with about

man

solidated
North

the

revenues

Western

highest

leverages

tain

some

con¬

—

one

the

be possible to

rail
re¬

reasonable share for the

equity.This,

common

field—it should

storage

$30d

per

from the

ing

case

has

been

in recent years.

far

management

Corresponding
seen

All told,

equipment
since

than

entered

the

way.

and

100%

greater

1954, while miles of rail

(Special to The Financial Chronicle) *

HARTFORD, Conn.—Edward W.

scene.

Co.

With Shearson, Hammill

new

accomplishment

maintenance

1955

Brereton Rice &

mainte¬
the

number of ties replaced
in
Ex-- 1956; for instance, was 59% greater

funds"

hold¬

now

35% increase in

The

than

"before

operations

nance

cept for the 39 cents per common
earned

track

awaiting repair.

efficiency

is
course,

cars

the road counts

Krasenics has joined

the staff

Shearson, Hammill & Co., 37 Letvis
Street.

Mr. Krasenics

Manchester

Cobum
rated.

was

former¬

representative

Middlebrook

for

Incorpo¬

Volume

185

Number

5618

The Commercial and Financial Chronicle

(1147)

With DeHaven, Townsend
(Special to The Financial Chronicle)

STAMFORD

the

Barclay. -Oscar Kind, Jr.,
&
S<>ns, will speak

Conn.—Edward

Fabulous

mond."

Gem—The

DIVIDEND NOTICES

DIVIDEND
THE

IRON

Townsend, Croutei

Cerro
DIVIDEND

NOTICES

Griggs Adds

WATERBURY,

| American

Conn.—Andrew

Cash Dividend No. 147
The

•

Company

dividend

Preferred

Phila. Inv. Women to Hear
Miss

{!/,%)

forty

the

Entertainment

quarter ending

the

Investment Women's

Philadelphia,

Committee

announces

Club

Stock

dinner

dend

meeting of the club to be held on
Monday, March 18 at 6:15 p.m. at

75<?'

per

^Preferred Stock for the

March 31, 1957 and

29,

divi¬

record March

books will

holders of

1957,

The

NOTICES

DOME MINES

was

March

Fuel

New

Board

and

York

the

(40£)

Stock of the

the

amount

per

dend

payable

stock,

fifty

the

amount

cents

prr

1957

30,
of

March

Transfer

Books

business

March
D.

and

to share¬
business on

11.

record

Broadway, New York 6, N. Y.

at;

February 28, 1957

1957.

McGREW,
Secretary.

quarterly dividend of fifty. (50(0
per share was declared, payable

cents

March

26,

record

1957, to stockholders of
the close of business March

not

14, 1957.

PagK| Secretary and Treasurer

ELECTRIC BOND AND SHADE

N. Y.

of fifty
(50<0
declared, payable

was

26,

record

COMPANY

per

March

300 Park Avenue
New York 22,

dividend

extra

cents

Secretary

February 27, 1957

1957.

MIAMI COPPER COMPANY

payable

Michael D. David

DIVIDEND NOTICES

30,
clo3e

divi¬

open.

the

three-

1957.

will

April

1957.

cents

stockholders
on

record

29,

CLIFFORD W. MICHEL,
President and Treasurer.

preferred

declared

were

payable
of

March

one-half

quarterly

sixty-eight

share,

declared
holders

dividend

value

par

158

At a meeting of the Board of
Directors of
Dome Mines Limited, held this
day, a quarterly
dividend
of
Seventeen
and
One-half
Centa
(17^c)
per
share
(in Canadian Funds)
was

per

1957

NO.

stock

regular

s50

15,

the

preferred

sixty-two and

also

series

March

the

and

cents

April

value

par

the

quarters
on

s?o

the

stock

common

The regular quarterly

Corporation, held
February 27, 1957, a

amount

March
stockholders of

per

1957.

series

Directors

Iron
on

the

declared,

11,

the

LIMITED
February 27, 1951

be closed.

11J1957. The stock transfer

remaiqj

E. F.

1957

5,
cash dividend

Common

record

per} share on the Common
been -declared. Both dividends

April

February

Corporation, payable

30c

have

payable

are

Corporation,

cents

the

fthe

held

1957, declared

No. 204

•

quarterly 'dividend

Margaret McKnight, Chairman of

Directors

Pasco

York corporation, at

New

—

meeting

ComniW dividend No. 194
•'

Board

Cerro

•

the

dividend,

corporation,
share

stockholders of record at the close

Bank Note

Street.

Pa.

Colorado

In Netv York.

quarterly

Jackson, Jr. is now with The
F. Griggs Co., 35 Leavenworth

PHILADELPHIA,

DIVIDEND

AND

CORPORATION

meeting

The

Corporation

CSpecial to The Financial Chronicle)

FUEL

Dividend Notices

Pasco

COLORADO

DIVIDEND

Bodine, 1 Atlantic Street.

R. F.

NOTICES

Dia¬

Martin has been added to the staff
of DeHaven &

Kind

"The

1957, to stockholders of
the close of business March

14, 1957.

New York, N. Y.

JOHN

GREENBUKGH,
Treasurer

Notice of Dividend

AMERICAN

229th

MACHINE AND

CONSECUTIVE CASH

SIXTY

1957,

CENTS

been

for

first quarter of 1957.
March

holders
14.

29.

1957,

the

record

30, 1957.

the

business

March 8,

February 28, 1957.

March

DIVIDEND

Vice President

March

and

The

21/2%

been

Board of Directors:

Secretary

declared

by the

quarterly dividend

March

NOTICE

ALLIED PRODUCTS

ord at
on

COMMON

DIVIDEND

NO.

February

40c

March

29,

15,

1957,

Michigan

per

March

26,
a

1957

the

board

corporation,
Common

directors

declared

shareholders

the

record

Allied

quarterly

the

Corporation,
close

dividends

are

payable

March

31,

1957 to stockholders of record March
8,
1957.
SEYMOUR M.

HEILBRON

Secretary

LONG IStAND LIGHTING COMPANY

184™

CONSECUTIVE DIVIDEND

rec¬

195 7.

Checks

mailed.

QUARTERLY

Common Stock
not

will

DIVIDEND

quarterly

J. W. Retlly

per

Products

dividend

the

Secretary
On

Corporation,

Preferred

COMPANY

the Com¬

Transfer books will

the close of business

closed.
*

per

Convertible

St. Louis

stockholders of

March 15.

payable

1, 1957

ord

March

business

dividend
payable

60«!

of
on

April

to stockholders of
the

15, 1957,

was

PREFERRED STOCK

rec¬

The Board of Directors has de¬

business

clared

declared

the

following quarterly
payable April i, 1957

dividends

1957.

by the Board of Directors.
to

holders of Preferred Stock of

'% !l

ANOREW W. JOHNSON

5rs'0',3

record

Vice-President and Treasurer

the

close of business

March 15, 1957:

■

touLU

—i

"A *V*

Series
February 75. 1957

Series B,

*inance
tilth CONSECUTIVE

The Board

Series

QUARTERLY CASH DIVIDEND

Series
of

Directors

has

declared

cash dividend of
$.25

per

quarterly

New

of business

March

15,

1957.

Over

day declared

March 1, 1957

1,000

offices

dend

Jjflfl/IW iConado, Hawaii and Alaska

Full text of Commercial and Financial Chronicle : March 7, 1957, Vol. 185, No. 5618

FRASER